Alibaba Group Holding, the e-commerce giant behind Tmall and Taobao platforms, reported worse-than-expected earnings in the third quarter amid a slowing Chinese economy, but got revenue back on a growth track, reports the South China Morning Post. The company reported an unexpected net loss of RMB 20.6 billion ($2.88 billion) under global accounting standards, as it marked down the value of its equity investments. It was worse than the RMB 18.8 billion profit forecast by analysts surveyed by Bloomberg. Sales grew 3% to RMB 207.2 billion, slower than the RMB 209.2 billion expected in the poll.
Under Chinese accounting standards, Hangzhou-based Alibaba posted an adjusted net income of RMB 33.8 billion, representing a 19% growth from a year earlier.
“We delivered a solid quarter in a macro environment full of uncertainty,” said Daniel Zhang Yong, CEO and chairman of Alibaba. “The ongoing resurgence of COVID-19, geopolitical tension, inflation and currency depreciation—the convergence of all these forces has created considerable difficulties for business operations.”