Alibaba Group Holding has announced it will not proceed with a full spin-off of its cloud computing unit, as it posted 9% growth in revenues in the September quarter, in its first earnings report since new leadership took over the Chinese e-commerce giant in September, reports the South China Morning Post. The Hangzhou-based company said that a full spin-off of the Cloud Intelligence Group “may not achieve the intended effect of shareholder value enhancement” because of the uncertainties brought about by recently expanded US export restrictions on advanced computing chips.
Alibaba, which is undergoing a sweeping restructuring to break its business empire into six major units and several small businesses, also said it is putting on hold its listing plan for supermarket chain Freshippo, as the company evaluates “market conditions and other factors that would contribute to a successful transaction to enhance shareholder value”.
Meanwhile, the company said it will pay out its first-ever annual dividends, which will total around $2.5 billion.
