Two legal entities of AliExpress in Russia made a profit at the end of 2023. The company called it “virtual”, as it appeared due to the forgiveness of debts worth 8.4 billion rubles. RBC writes about this.
Join
AliExpress’ main legal entity in the country is Alibaba.com (RU) LLC. Last year it made a net profit of 10 billion rubles and in 2022 it made losses of 11.7 billion rubles. This data is provided in the company’s report according to RAS. Alibaba.com (RU) LLC has not been profitable since its inception in 2019.
Singapore holding company Aliexpress CIS Holding Pte. Limited. Ltd, through which partners own AliExpress in Russia, in addition to the mentioned company, also include Air-Technological Solutions LLC and Aggregator-s Online LLC. The first earned 1.9 billion rubles at the end of last year, instead of a loss of 1 billion rubles in 2022. At Aggregator-s Online LLC, the loss increased from 1 billion rubles to almost 1.3 billion rubles .
The press service of AliExpress CIS reported that, in fact, the company did not make a profit over the past year.
“Alibaba.com (UK) data for 2023 shows accounting income, in fact, a “virtual profit” generated by the forgiveness of an internal loan issued in 2021 by another company in the group,” the press service explained.
The company also emphasized that in accordance with basic accounting rules and the principle of double entry when writing off liabilities, their entire amount in this case is accounting income.
- The Chinese group Alibaba launched the AliExpress online store in Russia in 2012. In 2015, Alibaba registered a Russian legal entity. In autumn 2018, the Chinese holding company agreed to create a joint venture in the field of e-commerce with Mail.ru Group, Megafon and the Russian Direct Investment Fund (RDIF), the deal was closed in October 2019.
- According to The Bell, against a backdrop of lack of new investments and losses since February 2022, AliExpress Russia reduced its staff by more than 50%, abandoned part of its space and almost completely stopped all advertising campaigns.
Author:
Karina Pardaeva
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
