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Alibaba's revenues soar on Lunar New Year sales

(Agencies) Updated: 2015-05-08 07:14

Alibaba's revenues soar on Lunar New Year sales

People walk at the headquarters of Alibaba in Hangzhou, Zhejiang province, April 23, 2014. [Photo/Agencies]


Alibaba Group Holding Ltd reported a 45 percent increase in fiscal fourth-quarter revenue as China's biggest e-commerce company capitalized on the Lunar New Year holiday shopping season.

The company also named Daniel Zhang as its new chief executive officer, replacing Jonathan Lu, who will remain on the board as vice-chairman, it said in its earnings statement.

Sales rose to 17.4 billion yuan ($2.8 billion) in the three months ended March 31, the company said on Thursday. That compared with the 16.8 billion yuan average of 25 estimates compiled by Bloomberg.

Alibaba shares climbed 8.3 percent in pre-market trading.

Chairman Jack Ma is using tools such as cloud computing to expand in China's surging e-commerce market.

Alibaba also is promoting platforms Tmall and Taobao in rural areas as the world's second-largest economy heads for 6.8 percent annual GDP growth.

"Rural and overseas businesses present a great opportunity," said Li Yujie, an analyst at RHB Research Institute Sdn in Hong Kong. Alibaba's transactions "were helped by holiday season shopping".

Alibaba shares closed at $80 in New York on Wednesday. The stock has gained 18 percent after being sold at $68 in a September initial public offering.

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