Alibaba – Helping Create a Flatter World for Global Trade................................................7 Investment Positives..........................................................................................................11 1 - Seizing the ‘Sweet Spot’ of China’s SME Growth..................................................11 2 - A ‘One-Stop Shop’ for SMEs...................................................................................12 3 - Customer Expansion Driven by ‘Snowballing Effect’...........................14 4 - Robust Financial Upswing.................................................................................15 5 - Strong Culture DNA...........................................................................................17 6 - Tier-1 Management Team.................................................................................18 7 - Turning Manpower into Core Assets................................................................18 8 - Extensive and Efficient Direct Sales Network.....................................................19 9 - Synergies with Sister Companies........................................................................20 10 - Developing the Blueprint for Alibaba 2.0...........................................................21 Investment Concerns................................................................................................23 1 – Ongoing Customer Turnover.............................................................................23 2 - Rapid Expansion May Lead to Culture Dilution....................................................23 3 - Will Alibaba Need to Help Out Its Little Sisters?....................................................24 4 - Competition on Multiple Fronts.............................................................................24 5 – Macro Forces May Induce Export Volatility.........................................................26 6 - Regulatory Risk May Rock the Market..................................................................28 7 - Litigation Risk - A Nonmaterial Reality?................................................................29 Valuation and Rating...................................................................................................30 Financial Projections...................................................................................................35 Alibaba’s Service Portfolio – Providing ‘Picks and Shovels’ for SMEs.................52 Basic Products and Services.........................................................................................52 Services and Products for Paying Members..................................................................56 Alibaba’s SME Customers: Who Are They?................................................................57 International Marketplace...............................................................................................57 ChinaMarketplace...........................................................................................................57 Alibaba – What Value Does It Bring to Customers?......................................................59 China’s B2B Industry – Creating the Online Marketplace for SMEs............................60 |