Jack Ma: Alibaba will become Microsoft

Information Times News (reporter Lu Jun) May 7, Alibaba (hk.1688) held in Hong Kong "Buffett-style" shareholder meeting. At the meeting, Alibaba chairman Ma Yun said that Alibaba in 21st century will become like Microsoft, Wal-Mart and GE as the world's great companies.

Jack Ma said that Alibaba today has not the money, has the resources, has all the customers to Alibaba's trust, Alibaba can influence and change the world.

Investors, shareholders clearly highly recognized Alibaba "investment in customer to help enterprises" concept. On that day, Alibaba stock was sought after, Alibaba closed at 11.74 Yuan, Rose 14.6%.

　　Strategy: Alibaba's anti-seasonal investment will continue to invest in customers

"Alibaba has been China's internet companies in the most cash reserves, plus Alibaba Group's 1.3 billion U.S. dollars, combined with the Chinese Internet before the sum of the total, Alibaba to do is just beginning, last year can not be disorderly investment, this year may be considered." "Ma said.

Alibaba's 2009 quarterly earnings show that, as of March 31, 2009, Alibaba had 6.9 billion renminbi reserves and no debt. In addition, Alibaba in the first quarter of deferred income and customer account receivable increased by 191 million ~24 billion, an increase of 28% per cent, the regular operating free cash flow (non-GAAP) for the RMB 343 million yuan, an increase of 25%.

"The biggest decision of the year 2008 is to resist the temptation to invest, and the biggest test of 2009 is how to invest the money for shareholders," he said. "The financial turmoil has not caused any loss to Alibaba," said chief executive David Wei, who raised money in the past 1.5 of the world's safest banks in China. At the same time, through business efforts, the funds from 400 million dollars into more than 1 billion dollars, and then Alibaba will be more active to see the project can be invested.

In Mr. Wei's view, Alibaba chooses "winter" investment is based on confidence and vision, but also based on "in the winter time to buy anything cheap, in the summer time to buy anything expensive." In Alibaba values, "customer first", under the influence of economic crisis, in order to help small and medium-sized enterprises "Winter", Alibaba increased its investment in customers. Mr. Wei said that 50 million is the investment in exchange for more than 50,000 customers, but this is not enough, Alibaba will continue to invest in customers, but also to invest in other than Alibaba and other SME-related, E-commerce-related industries.

　　Environment: China's economy takes the lead to revive Alibaba first benefit

"When you have a vision of the future we will become more optimistic, our optimism comes from the confidence in the Chinese economy." China's GDP grew just over 6% in the past quarter, the lowest quarterly GDP growth in recent years, but it is the best performance in the world, and we believe that China's economy will not only be resilient in this crisis, it is also the first country to emerge from the crisis. Mr. Wei said Alibaba has confidence in Internet e-commerce and has confidence in the team.

China's export sector will recover and Alibaba will benefit from a recovery in China's export sector, Morgan Stanley's 7th study said. Morgan Stanley believes China's export sector will recover, as follows: China's exports rose by 39% per cent in March 2009, reversing the continuing decline since last September, while the new export order purchasing Managers ' Index (PMI) has risen continuously in the past 5 months.

The CLSA China purchasing Managers Index (PMI) was 50.1 in April, and China's manufacturing sector has been showing signs of expansion after 8 consecutive months of shrinking. The April 50.1 was also significantly higher than March's 44.8, February's 45.1 and January's 42.2. Meanwhile, China's purchasing managers ' index in April, released by the Chinese Federation of Logistics and purchasing, rose from 52.4 in March to 53.5, the index rising to 50 per cent for the second month, before the index was under 50 for 5 consecutive months.

Morgan Stanley believes Alibaba will benefit from a recovery in China's export industry, as Alibaba's market share in China has expanded to more than 60% per cent, the three companies that followed the combined market share of 4 times times. In fact, in the first quarter of 2009, domestic exports fell 19.7% per cent year-on-year, but Alibaba paid members recorded the highest quarterly net increase of 49,544 to 481,575, up 47%.

At the same time, Alibaba benefited from the growth of paid users (12% chain), Alibaba's deferred income and customer advances, two important indicators of future growth in the chain 8% and year-on-year growth of 28%. Morgan Stanley believes that the company's value-added services over the next few years will increase its contribution to total sales from about 20% per cent to about 50%.

Jason Brueschke, an Internet analyst at Citigroup in Hong Kong, Brusko said that Brusko will become bigger, stronger and more powerful when China gets out of the current economic downturn.

　　Goal: To be a Chinese company proud of the world

"You want to be proud of the world's Chinese companies, in corporate governance than the Americans do better, American governance is not good, otherwise there will be no subprime." "Back from the United States, we saw several companies in 21st century will disappear a few, Alibaba 21st century will certainly squeeze into these companies." ”

He believes that Alibaba today is not the money, has the resources, has all the customers trust in us, Alibaba can influence and change the world.

Alibaba reported that the current registered users reached 40,250,413, of which 31,626,712 Chinese users, 8,623,701 international users. In addition, there are 5,041,063 business shops.

Mr. Wei revealed that 50% of inquiries and orders from Alibaba's international trading market were given to Chinese exporters, and 50% of inquiries and orders were given to developing countries in the Third world.

"I am pleased that in the past few months efforts have not only made China first, but also the first business-to-business Web site in India, and we will use more of our partners overseas." "Mr. Wei said that Alibaba in India and Japan have very good partners, Alibaba hopes to become the Japanese Alibaba, India Alibaba."

At present, Alibaba India user millions of. In addition, the establishment of less than a year of Alibaba Japan station has become Japan's largest business-to-business e-commerce service provider. At present, Alibaba Japan station already has 120,000 members, of which 40% for Japanese buyers, 1.4 million products, the maximum number of websites daily visits to 500,000 times a day, in addition to Japanese stations have nearly 4,000 daily business opportunities feedback.