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Alibaba posts annual revenue growth of 2 percent, earnings surge

Alibaba Group Holding announced its revenues for the fourth quarter ending March 31, were RMB 208.2 billion (USD 30.316 billion), an increase of 2 percent, coinciding with a single-digit lift in annual revenues.

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The Chinese tech giant said full-year revenues were RMB 868,687 million, also an increase of 2% year-over-year, while annual net income increased 39 percent to RMB 65.573 billion.

On March 28, Alibaba announced a new organizational and governance structure. The moves looks to make its businesses more “agile, enhance decision making, enable faster responses to market changes and promote innovation to capture opportunities, thereby unlocking shareholder value,” the company said.

As a result, Alibaba Group will become the holding company of the six major business groups and various other businesses. Each of the six will be independently managed by its own chief executive officer and board of directors with each of the candidates. The company also confirmed its board has approved the spin off of its cloud business.

“In an increasingly complex world, we have proactively transformed our organization to strengthen the competitiveness of our businesses through greater independence to address the evolving needs of different customers and capture new opportunities,” said Daniel Zhang, chairman and chief executive officer of Alibaba Group.

“We are taking concrete steps towards unlocking value from our businesses and are pleased to announce that our board has approved a full spin-off of the Cloud Intelligence Group via a stock dividend distribution to shareholders, with intention for it to become an independent publicly listed company.”