Ali Baba Group Holding Ltd. posted the slowest revenue growth for the second consecutive quarter since its IPO in 2014, and the Chinese e-commerce giant said challenges from Covid-19 outbreaks were significantly reducing its business across China.
The impact of Covid-19 restrictions has added to the already heavy financial cost to the company from regulatory measures and the country’s economic downturn. Alibaba said that since mid-March – around the time a wave of infections with the Omicron variant of the coronavirus hit China – it has seen a broad impact from supply chain and logistics disruptions. . It said cities with new Covid-19 cases in April made up more than half of its retail markets in China.