“Alibaba’s future hangs in the balance as revenue falls short and cloud unit faces uncertain fate.”

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China’s Alibaba Group Holding Ltd recorded a 2% increase in quarterly revenue, which missed expectations, reaching 208.20 billion yuan ($30.12 billion) for the three months ended in March. The outcome is a result of China’s wobbly economic recovery, which is stopping consumer spending to gain momentum. The firm’s board approved a full spinoff of the Cloud Intelligence Group through a stock dividend distribution to shareholders. Alibaba plans to complete the spinoff in the next 12 months, and it’s part of a restructuring project into six units announced earlier this year. The company expects to seek outside funding and go public with all its units, except for its China-facing e-commerce division. Alibaba’s finance chief said the board also approved the process to start external financing for Alibaba International Digital Commerce Business Group, an IPO for Cainiao Smart Logistics Group and the execution of the IPO for Freshippo. The company has been struggling to attract new users while competitors like PDD Holdings and ByteDance’s Douyin have gained inroads in China’s e-commerce sector.

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