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Chinese giant Alibaba announces 34% sales increase despite

pandemic
The company attributed the results obtained to being "well positioned in the digital
transformation, which has accelerated during the coronavirus pandemic."

Chinese internet commerce giant Alibaba announced on Thursday that it had doubled its net profit
and that its sales increased by 34% in the first quarter of its accounting year (April-June), which
shows the limited impact of the pandemic of the coronavirus in the group.

Alibaba's net profit reached US $ 6.7 billion in that quarter, and its sales stood at US $ 21.8 billion
in the April-June period.

The coronavirus, which emerged in China late last year, hit the Chinese economy, causing a
historic contraction of 6.8% in the first quarter of 2020.

Nonetheless, Alibaba and other Chinese tech giants have largely weathered the impact, and
President Daniel Zhang made it clear that the pandemic and lockdown increased the volume of
business by consumers opting for online shopping security.

"We are very well positioned to capture the growth of the digital transformation, accelerated by
the pandemic, both in consumption and in business operations," he said in a statement
accompanying Alibaba's earnings announcement.

Net profit increased to $ 6.7 billion, more than double (124%) compared to the same quarter last
year, mainly due to gains on capital investments, he said.

However, Alibaba's good health could be affected by the Donald Trump administration's continued
efforts to block out Chinese tech giants, following the campaign to isolate telecom group Huawei
and now threats to shut down the company. Tiktok application, owned by the Chinese company
ByteDance.

Trump has stated that both companies pose a threat to the national security of the United States
and the personal data of American citizens, and recently hinted that other companies, including
perhaps Alibaba, are susceptible to similar pressure.

Trump also ordered in May an investigation of Chinese companies listed on US financial markets,
including Alibaba, JD.com, Baidu, in a context of growing tensions between the two world
economic powers.Commentary

Currently, despite the economic slowdown that occurs, there are companies that managed to
remain economically positioned, despite the difficult situation. However, for Alibaba, all this has
represented quite a significant growth that gives us to understand that at the level of
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management and general planning, the company was if not very prepared, it had strong bases to
face any type of consequence that the confinement of the Chinese economic giant would provoke.