It’s been a while since I last wrote an article on Alibaba even though it remained one of my highest conviction positions to date with it alone taking up 27% of my entire portfolio. Alibaba Group Holding Ltd (NYSE: Baba) reported Q4 and full year earnings recently which closed off what for them as one of the most challenging years since they have gone public with the likes of regulatory restriction and changes, scandal issues, Covid lockdown, growing competitors, slowing Chinese economy and other factors. Based on a glance of their financial results for the full year, you can see how the company struggles throughout the period with increasing cost of operations which dampen operating and net margin – despite an increasing topline revenue.

• Revenue is up 19% YoY from Rmb 717m to Rmb 853m
• Operating Income falls 22% from Rmb 89.6m to Rmb 69.6m
• Operating margin is down YoY from 13% to 8%

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