Profits almost tripled last year at the world’s biggest e-commerce company, Alibaba

Profits almost tripled last year at the world’s biggest e-commerce company, Alibaba

The Chinese firm, which handles more transactions than Amazon and eBay combined, reported a net income of 71bn yuan ($11bn; 7.6bn pounds) for the year to 31 March, up 193% on the previous year

"Alibaba Group finished the fiscal year on a very strong note," said chief executive Daniel Zhang

"Whatever they are doing must be working, and most importantly it’s a sign that the Chinese consumer may not be weakening quite yet," said Gil Luria of Wedbush Securities

Despite the strong rise in sales, the company has struggled to reach the growth levels it recorded before it became a public company two years ago

It faces strong competition from local rival websites like Baidu, Tencent and JD.com

Shares have also lost more than a third of their value since the company held its record initial public offering in 2014

The company’s original business was Alibaba.com, set up by the company’s colourful founder, Jack Ma, in 1999. It helps to connect exporters in China (and other countries) with companies in over 190 countries around the world

The business now includes entertainment services, including China’s version of YouTube, Youku Tudou, as well as payment systems and cloud computing and logistics services

Increasingly, Mr Ma is looking to counter the company’s reliance on Chinese consumers, with the firm now looking to get up to half of its sales from abroad

Among recent deals to expand was the purchase of South East Asia e-commerce start-up Lazada and Hong Kong’s well-respected English language, the South China Morning Post

Another area of potential growth investors are excited about is its payment platform Alipay