Alibaba CEO highlights focus on narrowing losses, new board members amid scrutiny

Alibaba (NYSE:BABA)$Alibaba(BABA)$ Chief Executive Daniel Zhang said the company has made "meaningful progress" on narrowing operating losses in several of its units, but the company still has more work to do.

Speaking on Alibaba's (BABA) first-quarter earnings call, Zhang said the company's overall financial position is "healthy", with good free cash flow and cash reserves, but the company is working to narrow losses in several segments, including its delivery unit.

Zhang also pointed out that Alibaba (BABA) added Irene Yun-Lien Lee, Chairman of Hysan Development Company Limited, and Albert Kong Ping Ng, former Chairman of Ernst & Young China, as independent directors to the company’s board.

In a statement, Zhang said the "appointments are part of Alibaba’s ongoing enhancement of our corporate governance."

Alibaba (BABA) said earlier this week that it would "strive" to keep its New York listing as the Securities and Exchange Commission said it could delist the company amid auditing concerns.

Alibaba (BABA) was recently added to the list of companies at risk of facing a delisting as a result of the Holding Foreign Companies Accountable Act, or HFCAA.

The HFCAA tasks the Public Company Accounting Oversight Board to determine companies "that it is unable to inspect or investigate completely because of a position taken by an authority in the foreign jurisdiction."

The legislation states that a company would be delisted from a U.S. exchange if it was identified by the SEC for three consecutive years because of the PCAOB's inability to audit it properly.

Going deeper into the company's results, Zhang explained that revenue from Alibaba's (BABA) cloud unit declined to 10% year-over-year growth, caused by multiple factors, including the slowing macro economic environment and a decline from its "top internet customer."

However, Alibaba (BABA) is started to see more progress in cloud, the 50-year-old Zhang added.

Zhang also noted that on a combined basis, Alibaba (BABA) international gross merchandise volume is now over $50B and the company is growing its cross-border model. Alibaba (BABA) is focusing on increasing logistics and despite the near-term sales fluctuation, the company is focused on increasing the flow from China to Europe.

# Will Alibaba Become a Meme Stock?

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