(Yicai Global) Feb. 3 -- Alibaba’s shares rallied in the final minutes of trading in Hong Kong, after languishing for most of the day, as the Chinese e-commerce giant reported better-than-expected earnings in the final quarter of last year, but Jack Ma’s internet empire and other big online platforms still face stricter antitrust rules.

Alibaba Group Holding [HKG: 9988] had climbed 1.5 percent at the end of the regular trading day, but stepped back to a 0.5 percent gain at HKD261 (USD33.67) in the closing auction session. It had earlier slid as much as 4.9 percent. In New York yesterday, Alibaba’s shares [NYSE: BABA] lost 3.9 percent to USD254.50.

Net profit was USD12.2 billion in the three months ended Dec. 31, up 62 percent from a year earlier and 24 percent from the prior quarter, mostly driven by its retail and cloud computing businesses, the Hangzhou-based company said in an earnings report published before markets opened in New York yesterday. Revenue rose 37 percent to USD33.9 billion.

“Thanks to the rapid recovery of China’s economy, Alibaba had another very healthy quarter,” Chairman and Chief Executive Daniel Zhang said in a statement to accompany the earnings release.

Despite the swift upturn in China’s economy last year due to its successful control of the coronavirus, the final quarter was tumultuous for Alibaba. The firm’s shares went into freefall on Dec. 24 when China’s market watchdog said it was investigating the tech behemoth for alleged unfair market practices. A bit more than a month earlier, the Shanghai Stock Exchange had suspended the blockbuster listing of its fintech affiliate Ant Group, citing new administrative rules.

The Chinese government is ramping up oversight of the nation’s big tech companies. On Jan. 31, it unveiled a long-term action plan to enhance and improve implementation of antitrust laws, and will strengthen antitrust regulation governing the platform and sharing economies, to foster a market system with high standards.

Cloud and Retail

Alibaba’s cloud computing business boomed in the December quarter. For the first time, Alibaba Cloud achieved positive adjusted earnings before interest, taxes, depreciation, and amortization at USD3.7 million due to realizing economies of scale, and cutting unit costs due to increased output. 

“Our cloud computing business continues to expand market leadership and show strong growth, reflecting the massive potential of China’s nascent cloud computing market as well as our years of investment in technology,” Zhang said.

User numbers rose. Alibaba's domestic online marketplaces such as Tmall and Taobao recorded a 2 percent increase in the number of monthly active users on mobile phones at 902 million.

Alibaba’s revenue from core commerce jumped 38 percent to USD30.2 billion, while income from operations rose 24 percent to USD7.5 billion, the report showed.

Editor: Emmi Laine