|
The
announcement came alongside in-line second-quarter revenue
posted by the Chinese e-commerce giant, which in March announced
plans to carve out the unit as part of the biggest restructuring
in its 24-year history.
The company also put on hold plans for an initial public
offering of its Freshippo groceries business but said it would
prepare external fundraising for its international digital
commerce group arm.
Alibaba's U.S.-listed shares were down 8.4% in premarket
trading.
"The recent expansion of U.S. restrictions on export of advanced
computing chips has created uncertainties for the prospects of
Cloud Intelligence Group," Alibaba said.
Alibaba's ex-group CEO Daniel Zhang abruptly quit just two
months after concentrating his focus on cloud computing.
The company then appointed Eddie Wu, one of Alibaba Group's
co-founders and long-time lieutenant of former chief Jack Ma, as
both CEO of Alibaba and the cloud unit.
Regulatory filings also revealed on Thursday that Ma's family
trust plans to sell 10 million American Depository Shares of
Alibaba Group Holdings for about $871 million.
Alibaba posted second-quarter revenue of 224.79 billion yuan
($31.01 billion), in line with the 224.32 billion expected by
analysts, LSEG data showed.
China's economic recovery has been uneven. While the industrial
and the retail sectors have performed better than expected, the
crisis-hit property sector has weighed on consumer
confidence.Alibaba asked merchants to price aggressively during
its Singles Day festival as it takes on competitors such as
Douyin and PDD Holdings' Pinduoduo who have been selling
lower-cost products year-round.
($1 = 7.2481 Chinese yuan renminbi)
(Reporting by Akash Sriram in Bengaluru and Casey Hall in
Shanghai; Editing by Sam Holmes and Arun Koyyur)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
