Alibaba Spent 3 Billion Yuan In The Third Quarter To Stimulate Front-Line Staff

Alibaba group released its first quarter financial report after listing.

The report shows that in the three months before September 30, 2014, Alibaba group spent 3 billion 10 million yuan (US $490 million) to motivate employees (including related expenses and costs).

The above charges account for 17.9% of Alibaba group's total revenue, up 248.4% from 864 million in the same period last year.

Excluding this expenditure, according to non US general accounting standards, by the end of September 2014, the profit before Alibaba group's adjusted tax depreciation and amortization was RMB 8 billion 493 million yuan (US $1 billion 384 million).

The adjusted profit was 6 billion 808 million yuan, and the profit after adjusting diluted was 2.79 yuan.

The above incentive actions are not one-time but part of the Alibaba group's long-term incentive plan.

The cost of the incentive plan for Ali group will also be reflected in the subsequent earnings report.

Single quarter incentive $3 billion, totaling over $60 billion.

The above incentives will be given to many employees in the form of restricted shares, most of which are part of the employee incentive and retention plan.

In line with what the industry knows

The ESOP is expected to have long-term benefits from over ten thousand Alibaba employees.

Since 1999, Alibaba group has held more than 20% of its shares through stock options and incentives.

According to the total market value of Alibaba group, which was over $250 billion at the close of November 3rd, assuming that the shares are still held by all people, the total value is about US $60 billion.

According to convention,

The employees will be divided in installments.

Alibaba Group employees who get equity incentives will be able to get all the shares in the Alibaba group for more than four years in the future.

According to the report, Alibaba group's revenue reached 16 billion 829 million yuan (US $2 billion 742 million) in the quarter ended in September 2014, up 53.7% from 10 billion 950 million yuan in the same period last year.

The revenue of China's retail platform reached RMB 12 billion 769 million yuan (US $2 billion 80 million), an increase of 47.7% over the same period last year of RMB 8 billion 645 million yuan.

As the focus of its business sector, Alibaba group's China retail platform (Taobao, Tmall and Juhuasuan) total paction volume reached 555 billion 666 million yuan, an increase of 48.7% compared with the same period last year.

According to the financial data of Alibaba group in the previous two quarters, in the first three quarters of 2014, the total turnover of Alibaba group's retail platform in China was close to 15000 billion yuan.

The paction volume from mobile terminals has reached 35.8% in China's retail platform, a significant increase from 14.7% in the same period last year, and 217 million at the mobile end, compared with 91 million in the end of September 2013, an increase of 138.5% over the same period last year.

Corresponding to the growth of mobile users, the GMV ratio of Alibaba mobile terminals has also increased significantly: the mobile terminal GMV accounted for 35.8% to 199 billion 54 million yuan in total in the third quarter, and 32.8% in the last quarter, compared with 14.7% in the same period last year.