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   Technology StocksAlibaba Group Holding Limited


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From: Julius Wong8/3/2021 8:28:15 AM
1 Recommendation   of 795
 

Alibaba misses FQ1 sales estimates, launches record share buyback


Aug. 03, 2021 7:23 AM ET Alibaba Group Holding Limited (BABA) Alibaba Group Holding Limited (BABA) By: Brandy Betz, SA News Editor 24 Comments

maybefalse/iStock Unreleased via Getty Images

Alibaba (NYSE: BABA) reports fiscal first-quarter results that beat analyst profit estimates but missed on revenue as the company continues to invest in growth opportunities.

Revenue was up 34% year-over-year to RMB205.74B, missing consensus estimates by RMB2.93B. Adjusted earnings of RMB16.60 per share beat consensus by RMB2.31.

Commerce sales were up 35% to RMB180.2B with international retail up 54% to RMB10.8B. Cloud sales increased 29% to RMB16.1B.

Annual active consumers of the Alibaba Ecosystem reached 1.18 billion for the 12-month period ending June 30, up 45 million from the prior year's period.

Adjusted EBITDA decreased 5% on the same quarter last year to RMB48.6B primarily due to spending on growth opportunities.

“We delivered strong revenue growth of 34% year-over-year. As we said in last quarter's results announcement, we are investing our excess profits and additional capital to support our merchants and invest in strategic areas to better serve customers and penetrate into new addressable markets,” says Alibaba CFO Maggie Wu. “We are increasing our share repurchase program from US$10 billion to US$15 billion, the largest share repurchase program in the Company’s history, because we are confident of our long-term growth prospects. Our net cash position remains strong and we have repurchased approximately US$3.7 billion of our ADSs since April 1, 2021.”

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From: Sr K8/3/2021 9:36:55 AM
2 Recommendations   of 795
 
Alibaba Posts Quarterly Profit Lifted by E-Commerce and Cloud Computing

Tech giant’s profit attributable to shareholders was about $6.99 billion on about $31.9 billion in revenue

Alibaba Challenges Amazon With a Promise: Fast Global Shipping

0:00 / 6:34


Alibaba Challenges Amazon With a Promise: Fast Global Shipping

Chinese e-commerce giant Alibaba is challenging Amazon by promising fast deliveries from China to anywhere in the world. WSJ visits Alibaba’s largest automated warehouse to see how robots and a vast logistics network are helping it expand globally. Composite: Clément Bürge

By
Matt Grossman
and
Stephanie Yang

Aug. 3, 2021 8:14 am ET

E-commerce and cloud-computing sales fueled higher revenue for Alibaba Group Holding Ltd. in the latest quarter, as the company posted a profit after a regulatory fine dented its bottom line in the previous quarter.

Revenue for the Chinese tech giant rose to 205.74 Chinese yuan, or about $31.9 billion. A year earlier, Alibaba’s revenue in 2020s June-ending quarter was 153.75 billion yuan.

Chinese e-commerce sales grew 34% year over year, Alibaba said, as the company added about 14 million monthly active mobile users. Cloud-computing revenue was up by 29% amid greater demand from the technology, financial services and retail industries.

Alibaba’s profit attributable to shareholders was about $6.99 billion, or about $2.57 per American depositary share.

Citing confidence in the company’s prospects for growth, Chief Financial Officer Maggie Wu said that the company is increasing the size of its program to buy back shares from investors. Alibaba will now repurchase up to $15 billion of shares through the end of next year, a rise from the company’s previous $10 billion buyback plan.

Excerpt

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To: Sr K who wrote (772)8/6/2021 6:30:15 AM
From: Glenn Petersen
1 Recommendation   of 795
 
Alibaba Warns of Higher Taxes as China Crackdown Widens

By Zheping Huang
Bloomberg
August 6, 2021, 12:36 AM CDT Updated on August 6, 2021, 2:19 AM CDT

-- Some of Alibaba’s units lost their preferential tax status

-- China’s campaign to rein in big tech extends to incentives

Alibaba Group Holding Ltd. has warned investors that years-long government tax breaks for the internet industry will start to dwindle, adding billions of dollars in costs for China’s largest corporations as Beijing extends its campaign to rein in the sector.

China’s No.1 e-commerce company told some investors during post-earnings calls this week that the government stopped treating some of its businesses as so-called Key Software Enterprises (KSE) -- a designation that conferred a preferential 10% tax rate, according to people familiar with the matter. The Tmall operator forecasts an effective tax rate of 20% for the September quarter, up from just 8% a year ago, the people said, asking not to be identified discussing private conversations. Going forward, Alibaba warned that most internet companies will likely no longer enjoy the 10% rate, they added.

The move reflects Beijing’s tightening regulatory approach toward its largest tech companies from Alibaba to Tencent Holdings Ltd. and Meituan, which have come under fire for using their troves of data to enrich investors at the expenses of users. On Thursday, the state-backed newspaper Securities Times argued in an op-ed that China should scrap tax breaks to gaming companies because now they are big enough to thrive on their own.

“Because the preferential tax rates related to KSE are subject to annual review by the relevant tax authorities in China, there is always risk that companies that apply would not be granted the tax benefit,” Citigroup analyst Alicia Yap wrote in a research note Friday. “The argument basis sounds reasonable given a tightening regulatory environment and recent anti-trust investigation and fines on the internet sector.”

Alibaba representatives didn’t immediately respond to requests for comment. Shares of the firm erased gains immediately following the report and later traded little changed.

China’s effort to free up more tax revenue reflects a global trend. A tax deal struck between the world’s richest countries this year brought global governments a step closer toward clawing back some power from technology giants that have used century-old regimes to build up wealth eclipsing the economies of most nations.

China’s government has over the years handed out a wide range of tax incentives and financial aids to its now giant internet sector. While the standard corporate income tax rate in the country is 25%, those who qualify as high-tech enterprises enjoy a 15% rate and an even-more generous 10% rate is awarded to those deemed to operate essential software.

Read more: China’s Likely Bid for Tax Exemption Poses Risk to Global Accord

The removal of such incentives demonstrates Beijing’s willingness to go after private enterprises to address social inequities and rein in powerful interests. Its campaign against big tech is now entering its 10th month, a roller-coaster ordeal that’s prompting nervous investors to ponder the longer-term ramification of a crackdown that quickly spread from Jack Ma’s twin giants of Ant Group Co. and Alibaba to others like Tencent and gig-economy leaders Meituan and Didi Global Inc.

The loss of the preferential tax status at its core marketplaces like Taobao and Tmall could mean Alibaba will miss out on a tax benefit of roughly 11 billion yuan ($1.7 billion) for this fiscal year, Bocom analyst Connie Gu estimated. “But Alibaba has a diversified business portfolio,” she said. “It can still apply for tax reduction in the following years and also for other units like cloud, when they get profitable.”

For 2020’s September quarter, Alibaba recognized tax credits of roughly 6.1 billion yuan after tax authorities renewed the Key Software Enterprise status for some subsidiaries, the company said in its earnings statement at the time. That tax benefit meant Alibaba paid a 18% effective tax rate for fiscal 2021, during which it swallowed a record $2.8 billion antitrust penalty. The company told investors its effective tax rate for fiscal 2022 could rise to 23% to 25%, the people said, adding that some businesses will continue to enjoy the 15% rate for high-tech enterprises.

On Tuesday, Alibaba posted its first sales miss in two years for the June quarter, underscoring how its spending spree in newer businesses like online grocery and supermarkets has yet to pay off. But a $15 billion share buyback program -- the largest in its corporate history -- helped stem initial losses. Alibaba’s shares were largely unchanged in Hong Kong trading Wednesday even as rivals like Tencent and Kuaishou Technology plunged after state media trained its attention on gaming addiction and vulgar content.

In Tencent’s case, earnings could drop by more than 6% this year and fall roughly 9% the following two years if the social media and gaming leader loses its key-software tax status and starts paying a 25% effective tax rate from the second quarter of 2021, Citi’s Yap said. Tencent didn’t immediately respond to requests for comment.

Alibaba Said to Warn of Higher Taxes as Crackdown Widens - Bloomberg

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From: Julius Wong8/8/2021 9:58:04 AM
2 Recommendations   of 795
 
China Targets the Robotaxi Industry


Friendly regulatory environment bolsters efforts by 70 companies, including Baidu, Alibaba

An Apollo Robotaxi runs at Shougang Park as Baidu launches China's first driverless taxi service in the city on May 2, 2021 in Beijing, China.

He Luqi/Qianlong/Getty Images

Chinese tech giant Baidu opened a 2.5-acre test track and operations base for autonomous vehicles last week, its third such site in the country and its latest move to dominate the "robotaxi" industry.

China's self-driving vehicle market is moving faster than that of the United States thanks to government regulatory support. In the past year, Baidu and AV competitor AutoX, backed by e-commerce giant Alibaba, have announced a series of steps in the race toward what promises to be a massive market.

Swiss bank UBS estimates that by 2030, the global robotaxi market will be worth at least $2 trillion annually, with robotaxi fleet purchases accounting for 12% of all new cars sold.

In April last year, Baidu began offering free robotaxi trips in Changsha within a pre-defined area, followed by Cangzhou and Beijing. Then, in December, AutoX launched a trial of driverless robotaxis in the southern city of Shenzhen and opened that service to the public in January this year. In May, Baidu started commercial robotaxi service within a 1.2 square-mile zone in western Beijing and last month opened a pilot program to the public covering a 60-square-mile district in the southern city of Guangzhou.

The Shanghai operations center will serve as a base for Baidu's Apollo brand robotaxis, robobuses and other types of autonomous vehicles in the region. The base will collect data and calibrate connected vehicles and act as a remote control center.

"Our base will serve as an intelligent connectivity ecosystem and expand to over 200 operating vehicles to become the largest autonomous driving fleet in East China," said a Baidu spokesperson.

AutoX opened a robotaxi operations center in Shanghai last year, and has been offering limited robotaxi service to the public in Shanghai for more than a year. The company's robotaxi service in Shenzhen, meanwhile, operates without a safety driver or operator in the car. "This is still the only fully driverless RoboTaxi operation in China until today," said Jewel Z. Li, AutoX's chief operating officer.

This is still the only fully driverless RoboTaxi operation in China until today.

Since Beijing approved self-driving car tests on designated public roads more than three years ago, dozens of cities have awarded pilot program permits to more than 70 companies.

Chinese regulators began allowing limited robotaxi trials June 2019 and this January, the Ministry of Industry and Information Technology released a draft policy permitting AV testing on highways with a goal of opening the robotaxi market by 2025.

Baidu has announced plans to deploy 3,000 robotaxis in 30 Chinese cities by the end of 2023. AutoX and WeRide, which is backed by the Renault-Nissan-Mitsubishi Alliance, have similarly ambitious goals.

Didi Chuxing, the Chinese ride-hailing company that has recently faced Chinese regulatory troubles, also operates a fleet of autonomous vehicles.

China is pursuing other self-driving vehicle applications, including autonomous heavy trucks. Baidu is working on a robotic excavator system with the University of Maryland, integrating perception, planning, and control capabilities to enable material loading with no human intervention. The excavation system has been deployed in real-world scenarios, operating continuously for over 24 hours at a time.

spectrum.ieee.org

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From: quantinvestor8/9/2021 12:49:12 PM
   of 795
 
Chinese government will regulate everything why would anyone buy here?

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To: quantinvestor who wrote (775)8/18/2021 5:15:15 AM
From: Glenn Petersen
1 Recommendation   of 795
 
Alibaba’s U.S. Shares Fall to Lowest Since 2019 as China Cracks Down

Several tech stocks decline after authorities in Beijing release a new round of proposed regulations

By Hardika Singh
Wall Street Journal
Aug. 17, 2021 6:46 pm ET

A new round of proposed regulations sent Alibaba Group Holding Ltd. BABA -4.91% ’s U.S. listing to decline 4.9% on Tuesday to $173.73, its lowest close since October 2019.

The Chinese tech company’s American depository receipts have fallen more than 25% so far this year.

New draft guidelines released Tuesday by China’s top market regulator aim to prevent internet companies from adopting forced exclusivity and blocking competitors’ links and apps.

The guidelines are the latest in a series of moves by Chinese regulators affecting tech companies, fueling share price declines, even as U.S. indexes have risen to records. In addition, Chinese businesses face added pressure from Securities and Exchange Commission Chairman Gary Gensler, who has said the agency would require additional disclosures from Chinese companies before allowing them to sell shares.

Some of the most active bets tied to Alibaba shares were bearish put options that were tied to the share price plunging even further. Among the most popular options tied to Alibaba were put contracts pegged to the shares hitting $170, according to Cboe Global Markets data. Put options allow a trader to sell shares at a specific price, later in time.

The ADRs of Tencent Holdings Ltd. fell 4.1% on Tuesday to $55.15, the lowest level in more than a year.

Invesco’s Golden Dragon China exchange-traded fund, which has a third of its portfolio invested in mostly Chinese internet and direct marketing companies, fell 2.4% on Tuesday to $41.87, extending its decline year to date to 34%.

Another factor pressuring U.S.-listed Chinese businesses is Afghanistan, said George Ball, chairman at the investment firm Sanders Morris Harris. He said traders worry that China’s potential growing influence might empower the Chinese government to enact even more stringent regulations.

“The American inability to deal with the threats in Afghanistan is making traders think that China is going to be all the more stronger,” Mr. Ball said.

—Gunjan Banerji contributed to this article.

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the August 18, 2021, print edition as 'Alibaba’s U.S. Shares Lose Ground.'

Alibaba’s U.S. Shares Fall to Lowest Since 2019 as China Cracks Down - WSJ

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From: Sr K8/21/2021 2:49:09 PM
1 Recommendation   of 795
 
Jack Ma’s Costliest Business Lesson: China Has Only One Leader

The billionaire entrepreneur matched the heights of America’s tech legends but failed to heed warnings that Chinese leader Xi Jinping still called the shots


Jack Ma in 2018 at an international investment conference in Johannesburg.PHOTO: AGENCE FRANCE-PRESSE/GETTY IMAGES

By
Keith Zhai
,
Lingling Wei
and
Jing Yang

Aug. 20, 2021 11:33 am ET

Brainy and ambitious, Jack Ma built one of China’s largest business empires from scratch, creating billions of dollars in wealth and introducing digital innovations to hundreds of millions of people. He wasn’t China’s Jeff Bezos, Elon Musk or Bill Gates. He was their peer.

Now he has disappeared almost entirely from public view, in part because of the same go-for-broke drive he shared with the other 21st century tech titans.

Technological disruption, once seen as a useful prod for China to catch up with the West, has been recast as a threat to the ruling Communist Party. As a result, Xi Jinping, China’s most powerful leader in decades, is rewriting the rules of business for the world’s second-largest economy.

Mr. Ma failed to keep pace with Beijing’s shifting views and lost an appreciation for the risks of falling out of step, according to people who know him. He tuned out warnings for years, they said. He behaved too much like an American entrepreneur.

Mr. Ma’s exit from the world stage followed a typically frank speech in October, when he criticized Chinese regulators for stifling financial innovation. Mr. Xi personally intervened days later to block the record $34 billion-plus initial public offering of Ant Group, Mr. Ma’s financial-tech company. Since then, Ant has been forced to restructure its business, leaving the company’s employees and investors in limbo.

Exc.

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From: Julius Wong8/22/2021 5:57:15 PM
   of 795
 
At Friday close, BABA was $157.96

The BABA Technologies Trades: Below is a look at the notable alerts, courtesy of Benzinga Pro:

At 6:24 p.m., a trader executed a block trade above ask of 1.6 million Alibaba shares at $160.98 per piece. The trade represented a $257.56 million bullish bet.

At 6:28 p.m., a trader executed a block trade above ask of 2.2 million Alibaba shares at $160.98 per piece. The trade represented a $354.15 million bullish bet.

benzinga.com

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From: Glenn Petersen8/23/2021 7:19:15 PM
   of 795
 
BABA is already listed on the NYSE, so the following is probably not applicable to the company. It is, however, indicative of the added regulatory scrutiny being given to the listings of Chinese companies.

EXCLUSIVE SEC gives Chinese companies new requirements for U.S. IPO disclosures

By Echo Wang

Aug 23 (Reuters) - The U.S. Securities and Exchange Commission (SEC) has started to issue new disclosure requirements to Chinese companies seeking to list in New York as part of a push to boost investor awareness of the risks involved, according to a document reviewed by Reuters and people familiar with the matter.

Some Chinese companies have now started to receive detailed instructions from the SEC about greater disclosure of their use of offshore vehicles known as variable interest entities (VIEs) for IPOs; implications for investors and the risk that Chinese authorities will interfere with company operations.

Last month, SEC Chair Gary Gensler asked for a "pause" in U.S. initial public offerings (IPOs) of Chinese companies and sought more transparency about these issues. Chinese listings in the United States came to a standstill after the SEC freeze. In the first seven months of 2020, such listings reached a record $12.8 billion, as Chinese companies capitalized on the soaring U.S. stock market.

"Please describe how this type of corporate structure may affect investors and the value of their investment, including how and why the contractual arrangements may be less effective than direct ownership, and that the company may incur substantial costs to enforce the terms of the arrangements," said one SEC letter seen by Reuters.

The SEC has also asked Chinese companies for a disclosure that "investors may never directly hold equity interests in the Chinese operating company," according to the letter. Many Chinese VIEs are incorporated in tax havens such as the Cayman Islands. Gensler has said there are too many questions about how money flows through these entities.

"Refrain from using terms such as 'we' or 'our' when describing activities or functions of a VIE," the letter stated.

An SEC spokesperson did not immediately respond to a request for comment.

The SEC has also provided disclosure requirements pertaining to the risk of Chinese regulators intervening with company data security policies, the sources said. Last month, just days after the blockbuster IPO of Didi Global Inc (DIDI.N), Chinese regulators banned the ride-sharing giant from signing up new users. This move was followed by crackdowns on technology and private education companies.

The SEC has also asked some companies for more details in cases where they do not comply with the U.S. Holding Foreign Companies Accountable Act on accounting disclosures to regulators. China has so far prevented companies from sharing the work of their auditors with the U.S. Public Company Accounting Oversight Board. Last month, the SEC removed the chairman of the board, which has been unsuccessful in its push to ensure independent auditing of U.S.-listed Chinese companies.

The SEC's move represents the latest salvo by U.S. regulators against corporate China, which for years has frustrated Wall Street with its reluctance to submit to U.S. auditing standards and improve the governance of companies held closely by founders.

The SEC is also under pressure to finalize rules on the delisting of Chinese companies that do not comply with U.S. auditing requirements.

Reporting by Echo Wang in New York Editing by Greg Roumeliotis and David Gregorio

EXCLUSIVE SEC gives Chinese companies new requirements for U.S. IPO disclosures | Reuters

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To: Julius Wong who wrote (778)8/24/2021 4:19:35 AM
From: Glenn Petersen
1 Recommendation   of 795
 
Smart money.

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