All praise to the glorious Allah

Attiq Shah

IntroductionE-COMMERCE
E-commerce was introduced in China in 1993.
E-commerce market are influenced by govt.
regulations, logistics and payment systems.

IntroductionE-COMMERCE
Trudy Dai used to spend all night sending e-mails
from her friend Jack Mas apartment through
Alibaba, an online listings service
Mr. Ma, a teacher, had just started.
From 22.5 million users(1.7% of internet users of
China) in 2000, the usage rose to 162
million(12.3%of internet users)in 2007,and has
been growing continuously since then.

Introduction
Sear
ch
Engi
ne

Taobao MarketPlace
Tmall.com
JuHuaSuan
AliTrip
AliExpress
Alibaba.com 1688.Com
AliMama
AliPay
AliBaba Cloud Computing

Mark
etpla
ce

Ban
k

All in
One

Introduction

Ali Baba -Country wise business

Scenario (2008)
Country/Regio Business(in
n
%)
USA

21

Europe

21

India

South east Asia

China

Hong Kong

Singapore and
Malaysia

Canada

Australia

Others

27

Customer Driven Strategy

The first was that many Chinese are tight-fisted.
So Alibaba made all the basic services it offers
free to both buyers and sellers.
It earns money through online advertisements
and extra services it offers clients, such as
website design.

Customer-relationship building
The second is that many Chinese are
reluctant to trust strangers. So Alibaba has
provided tools to build trust.
One is an independent verification service
through which third parties vet the claims
made by sellers; the sellers pay for the
process. Another is the Alipay payments
system.

Visio
n

To Last 102 Years

To be one of the worlds top 10 Internet

Sites

To be essential partner for all business

people

Developme
nts
Case
1999

Raised
money from Venture Capitalist
analysis
Platform for Trade B2B
2 lac members at the end of year
Attracted other companies into e-Commerce
Stood hard in dotcom bubble
Dotcom Crash

200
0200
3
200
4200

Advertising Revenue
Bankruptcy
Mergers

Early 2001 Alibaba offered Alibabies

Late 2001 created a Community
China Suppliers
Set a Trustpass Membership

Entry into C2C and B2C

Winning over eBay
Yahoo! china Acquisition

Developme
nts
Objectives
1999

200
0200
3
200
4200

Gather Work Force

Build Customer Base
Establish Brand Name
Withstand Dotcom Burst
Consolidate Firms Position
Image Building
Retain Employees

Expansion within China

Global Presence
Better Revenue Model

Developme
nts
Finance
1999

200
0200
3
200
4200

Debt Fund Raising

Venture Capitalist
Soft Bank

Revenue Model
Selling of Advertising Space
Charging of Membership

Debt Leverage Concept

Merger and Acquisition
Expansion of revenue Model

Waseem Akbar

Assets
Total Assets of Ali Baba = $17.94 billion
Total Current Assets = $ 10.78 billion
Total Fixed Assets = $ 7.16 billion
Revenue = $8.58 billion
Net Income = $3.81 billion
Interest Expense = $358.53 million
For the year 2013-14

How it stands with the competitors?

Ali Baba

Amazon

eBay

2012-13

2013-14

2012-13

2013-14

2012-13

2013-14

$5.5B

$8.58B

$74.45B

$16.05B

Net Income

$1.36B

$3.81B

$274M

$2.86B

Total Assets

$10.27B

$17.94B

$40.159B

$41.49B

$6.95B

$10.78B

$24.625B

$23.28B

Revenue

Total Current Assets

Data fetched from www.nasdaq.com (Stock

Exchange)

Ratio Analysis of AliBaba

Assets
Current
Assets other
than
Inventories

Balance
Sheet
Liabilitie
s
$10.78B
Current

$5.36B
$11.37B

Inventories

Total Current
Assets

$10.78B

Total
Liabilities

Total Assets

$7.16B
$17.94B

$6.01B

Liabilities
Non-Current
Liabilities

Non-Current
Assets

Some Elements
ofIncome Statement

O.E

$4.72B

Common
Equity

$1.84B

Other O.E

$6.56B

Total O.E

$17.94B

Sales

$8.58B

Net
Income

$3.81B

Total L+O.E
Data fetched from www.nasdaq.com (Stock
Exchange)

Website to Visit!
http://www.macroaxis.com/invest/market/1688.HK--funda
mentals--Alibabacom_Limited

For ratio analysis!

Profit Analysis

Analysis of Returns

Asset Turnover Analysis

Other Things
Beta = 0.0395
Altmans Z-Score = 2
Criteria for Altman Z-Score:
1.

z > 2.99 (Safe)

2.

1.8 < z < 2.99 (Grey)

3.

z < 1.8 (Red)

Muhammad Hussain

 Who is an underwriter?
What is an IPO?
What is Secondary Public Offering?

When did the world see its first IPO?

Comes Wow!

Ali Babas IPO

AliBaba raised $25 Billion (Pakistani: Rs.25 Arab) = 10 Mian Manshas

Initial expected price: $60-$66
IPO on $68
IPO on 18th September, 2014
Biggest IPO so far
Broke the record of Agricultural Bank of China ($22.1 Billion)

 Underwriters earned $300 Million

Out of which $121.8 million was to be paid by AliBaba and $178.6 by
Shareholders
Stock price on 24th November, 2014: $112.15 (10.15 pm. Pakistani time)

Authorized shares = 320.1 million

Issued shares = 123.1 million
They had supposed to raise $8.371 Billion with $68 per share
But, they actually raised $25 Billion

Market Share

Potential of E-Commerce in China

A Chance for AliBaba

Waseem Akbar
To Close it All!

The Great Jack Ma

Thank you