SHANGHAI China's Alibaba Group more than doubled its April-June net profit and grew sales by 71 percent for the period, proving the country's largest e-commerce firm has shrugged off intensifying competition in the sector.
Yahoo Inc which sold a partial stake in Alibaba back to the privately-owned group in September, still holds 24 percent of Alibaba.
According to a Yahoo filing to the U.S. Securities and Exchange Commission on Thursday, Alibaba Group's net attributable income for the quarter was $273 million, up 129 percent from a year ago. Revenue rose 71 percent to $1.1 billion.
Based on the second-quarter results, Alibaba Group is the second-largest Chinese Internet company by revenue, behind Tencent Holdings and ahead of Baidu Inc. It is the last large China Internet firm that is still private and not required to publicly disclose financial statements.
Alibaba, which runs the Taobao Marketplace, China's largest business-to-consumer e-commerce website, and Alibaba.com, China's largest business-to-business platform, has a business model that revolves around online advertising and subscription fees.
Alibaba's profit for the first nine months of the year was up more than 300 percent to $730.4 million, while revenue was up 74 percent to $2.9 billion.
Alibaba's soaring growth reflects the underlying boom in China's e-commerce industry that was worth 278.84 billion yuan ($45 billion) in gross transaction value in the second quarter.
However, the rise in e-commerce has led to intensifying competition in the sector with e-commerce firms launching price wars and sales events to lure consumers to their platform.
On Sunday, China's e-commerce players such as 360buy, Ecommerce China Dangdang Inc and Alibaba launched a "11.11" sale, a massive online sale akin to Cyber Monday in the United States. The "11.11" sale offered big discounts on electronics and apparel to tempt users to shop.
Alibaba said it recorded its highest one-day gross transaction value, at 19.1 billion yuan ($3.06 billion), on Sunday. ($1 = 6.2450 Chinese yuan)
(Reporting by Melanie Lee; Editing by Muralikumar Anantharaman)