Alibaba Group Holding Ltd (9988.HK) reported better-than-expected quarterly revenue on Thursday, as the Chinese e-commerce giant benefited from the country easing COVID-19 curbs.
The company has weathered a weak economy in China, which only last December lifted its zero-COVID policy after three years.
Revenue rose 2% to 247.76 billion yuan ($35.92 billion) for its fiscal third quarter to Dec. 31, compared with a Refinitiv consensus estimate of 245.18 billion yuan drawn from 23 analysts.
U.S. shares of Alibaba were indicated up 6.1% in pre-market trade, while Pinduoduo Inc (PDD.O) and JD.com Inc (9618.HK) were both seen up about 3%.
China’s total retail sales contracted 1.8% in December, while its economy grew 3% in the full year 2022, one of its worst growth rates in nearly half a century.
Net income attributable to ordinary shareholders rose 69% to 46.82 billion yuan from 27.69 billion a year earlier.
Retail spending in China is expected to remain weak for the first part of the year, though analysts expect that stimulus policies and eventual release of consumer savings will occur around springtime.
Alibaba’s customer management revenue, which tracks payments from vendors and is the company’s largest sales segment, fell 9% year on year.
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