Date
26 September 2017
Daniel Zhang has been named Alibaba Group's new CEO as the company seeks to give bigger roles to younger executives. Photo: Bloomberg
Daniel Zhang has been named Alibaba Group's new CEO as the company seeks to give bigger roles to younger executives. Photo: Bloomberg

Alibaba posts 45% rise in quarterly revenue; names new CEO

E-commerce giant Alibaba Group posted a 45 percent rise in revenue for the three months ended March, beating analyst expectations, on the back of growth in mobile transactions.

The Chinese firm reported Thursday that it clocked revenue of US$2.81 billion for its fiscal fourth quarter amid growth in mobile users. Analysts polled by Reuters had expected the revenue to come in at US$2.77 billion.

Net profit, however, was down 49 percent compared to the corresponding period last year, at US$463 million, mostly due to expenses related to employee stock options.

While unveiling the quarterly results, the company announced the appointment of a new chief executive.

Daniel Zhang, currently chief operating officer, will take over as CEO of the group effective Sunday, Alibaba said.

Zhang takes the post from Jonathan Lu, who two years ago succeeded then-chief executive Jack Ma. Lu will remain on the board as vice chairman.

Alibaba noted in a statement that Zhang was a key architect of the Nov. 11 shopping event in China, known as Singles Day, helping it to become the world’s largest online shopping event.

In a letter to employees, group founder Ma said the management change was part of a broader effort to bring younger leaders into the company, the Wall Street Journal reported.

Others who are changing responsibilities beginning Sunday include executives who oversee technology, risk, strategy and marketing.

“This marks a future where the post-70 generation will command the troops at Alibaba Group,” Ma was quoted as saying in his letter.

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RC

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