Table 3 and Fig 3 provide Alibaba s brief history 1999 2017 timeline and the

Table 3 and fig 3 provide alibaba s brief history

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Table 3 and Fig. 3 provide Alibaba s brief history (1999 2017), timeline, and the company s stock information (2014 2017). Ma founded Alibaba with his 17 associates in Hangzhou, China, in June 1999. Unlike other Chinese firms which took the route of exporting (Naudé and Rossouw 2010 ), Alibaba on the contrary was established as a 370 Anwar S.T.
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subsidiary to provide software and technology services. In high-tech ventures, firms often take advantage of B employee entrepreneurship ^ and in-house knowledge skills (Ganco 2013 , p. 666). Alibaba also benefited from its committed staff and associates in its early days. Because of growth opportunities and future prospects, Goldman Sachs provided $5 million venture capital funding to the company. Masayoshi Son, founder and CEO of Softbank of Japan, made a much needed investment in Alibaba in 2000. This investment brought Softbank exorbitant profit with massive riches. The company started Gold Supplier Membership to attract SMEs in global markets followed by Table 1 Selected financial data and investments of Alibaba (2014 2017) 2014 2015 2016 2017 a Financial data: Market capitalization ($ billion) 225 234 194 304 Revenues ($ million) 12,293 15,827 20,500 28,250 Net profit ($ million) 3914.0 4483.0 625 9425 Net profit margin (%) 31.80 28.30 30.50 33.50 Operating margin (%) 77.30 67.50 67.50 41.50 Income tax rate (%) 19.80 21.70 20.0 22.50 Working capital ($ million) 16,525 12,721 25,000 27,500 Long-term debt ($ million) 8160 8292 8000 10,000 Shareholder equity ($ million 23,560 38,700 45,000 52,500 Return on shareholder equity (%) 16.60 11.60 15.0 18.0 Revenues per share ($) 4.93 6.18 8.20 11.55 Earnings per share ($) 1.56 1.75 2.50 3.85 Book value per share ($) 9.44 15.11 18.80 21.45 Capital spending per share ($) .50 .50 .65 Dividend declared per share ($) Common shares outstanding (million) 2495.5 2562.0 2500.0 2450.0 Relative PE ratio 2.23 Major investments of Alibaba (2011 2017): Alibaba.com: $2.4 billion Alibaba (investment in Yahoo): $7.1 billion Xiaoju Kuaizhi: $3.2 billion Alibaba Group Holding: $2.3 billion Suning Commerce Group: $4.6 billion Youku Tudou Inc.: $5.1 billion Lyft: $1.0 billion Xiaoju Kuaizhi: $4.5 billion Intime Retail Group: $2.6 billion Source: Lucas ( 2017a ); Patrikis ( 2016 , 2017 ); YahooFinance ( 2010 )-2017). Note: Alibaba shares were listed on the New York Stock exchange on September 18, 2014. The company s IPO was priced at $68 and was able to raise $21.8 billion. It was the largest IPO in the US corporate history a As of May 2017 Alibaba: Entrepreneurial growth and global expansion 371
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Table 2 Product categories listed on Alibaba s portal (as of 2016 2017) * Agriculture and food - Agriculture - Food and beverage * Apparel, textiles, and accessories - Apparel - Textile and leather products - Fashion accessories - Timepieces, jewelry, and eyewear * Auto and transportation - Automobiles and motorcycles - Transportation * Bags, shoes, and accessories - Luggage, bags, and cases - Shoes and accessories * Electronics - Computer hardware and software - Home appliances - Consumer electronics - Security and protection * Electrical equipment, components, and telecoms - Electrical equipment and supplies - Telecommunication * Gifts, sports, and toys - Sports and entertainment - Gifts and crafts - Toys and hobbies * Health and beauty - Health and medical - Beauty and personal care * Home, lights, and construction - Construction and real estate - Home and garden
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