$BABA-W (09988.HK)$ The earnings exceeded market expectations, driving the stock price to surge today, making it a leading performer. $Hang Seng Index (800000.HK)$ and $Hang Seng TECH Index (800700.HK)$ According to the Futubull app, the company's revenue was actually not significantly different from market expectations, with the largest discrepancy being in profitability performance. In the second quarter of 2025, the company reported a diluted earnings per share of 2.25 RMB, an annual increase of 81%.This is significantly higher than the market expectation of 1.508 RMB (RMB; same below).This is significantly higher than the market expectation of 1.508 RMB (RMB; same below).
However, when examining the details of the performance, there are certain aspects worth noting. The revenue for this quarter was 247.6 billion yuan, reflecting a year-on-year increase of 2%. However, if we exclude the disposed revenues from Sun Art Retail and Intime Retail, the year-on-year revenue growth on a comparable basis would be 10%. Furthermore, despite a significant increase in profits, operating profit declined by 3% year-on-year to 35 billion yuan. The non-GAAP net profit was 33.51 billion yuan, down 18% compared to 40.691 billion yuan in the same period of 2024.
Therefore, in addition to looking at the overall figures, it is more important to consider the overall performance of each key project.
Alibaba China E-commerce Group
The decline in operating profit is primarily related to "Taobao Flash SaleIn terms of user experience, user acquisition, and technology investments, there was mention of Alibaba's double-digit revenue growth in the Chinese e-commerce sector and improvements in various operational efficiencies, albeit overshadowed by other new...