Alibaba Increases Share Repurchase Program Amid Declining Profits

Title: Chinese E-commerce Giant Reports 69% Profit Plunge Due to Impairments

Introduction:
The Chinese e-commerce giant, Alibaba, recently announced a significant decline in profits for the quarter ending in September. The company attributed this decline to impairments related to its Sun Art retailer business and Youku video platform, totaling $3 billion. Let’s take a closer look at the details of this announcement.

Impairments Linked to Sun Art Retailer Business:
Alibaba’s Sun Art retailer business, which operates a chain of hypermarkets and supermarkets in China, experienced a decline in sales due to the ongoing trade tensions between the US and China. This resulted in a $2.9 billion impairment charge for the company.

Impairments Linked to Youku Video Platform:
Alibaba’s video platform, Youku, also faced challenges during the quarter. The company reported a decrease in advertising revenue and an increase in content costs, leading to a $100 million impairment charge.

Impact on Profit:
As a result of these impairments, Alibaba’s net profit for the quarter dropped by 69% compared to the same period last year. The company’s net profit was $1.1 billion, significantly lower than the $3.7 billion reported in the previous year  

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