BEIJING — Alibaba Group Holdings Ltd. posted another quarter of strong sales growth as employee compensation schemes continued to weigh on the company’s bottom line.
Alibaba also announced that Daniel Zhang, currently chief operating officer, will become chief executive officer of the company as of May 10. He replaces Jonathan Lu, who will remain on the board as vice chairman.
The Chinese e-commerce giant’s net profit for the fiscal quarter ending March 31 declined 49 percent to $463 million. Alibaba releases its earnings in both dollars and renminbi.
Revenue for the period grew 45 percent to $2.81 billion. That figure outpaces the 40 percent growth posted in the previous quarter ending Dec. 31.
Mobile gross merchandise volume as a proportion of total GMV rose to 51 percent from 42 percent in the previous quarter and 36 percent in the quarter ending Sept. 30, Alibaba said.
“We continue to execute our growth strategy and focus on long-term value creation. The fundamental strength of our business gives us the confidence to invest in new initiatives, add new users, improve customer experience and expand our products and services,” said Maggie Wu, Alibaba’s chief financial officer.
Zhang has been with the company for eight years, working in various positions. He joined Alibaba as chief financial officer of Taobao Marketplace in August 2007 and became coo in September 2013. The company described him as a “key architect” of Singles’ Day, considered the world’s largest online shopping event. It takes place on Nov. 11.