By Gina Lee

Investing.com – Alibaba (NYSE) Group Holding Ltd.’s Hong Kong shares fell after China’s e-commerce giant announced fiscal 2022 revenues.

By 9:46 ET (2:46 GMT), shares fell 10.13%, to HK$140.20 ($18).

Alibaba saw a 29% decrease in its September quarter revenue to CNY200.7billion ($31.44 billion). The revenue forecast for 2022 was 20% to 23%, which is lower than the expected 27%. After Alibaba reduced the equity investment value, net income fell 81% to CNY5.4billion.

Alibaba CEO Daniel Zhang stated that more information will be shared about the company’s outlook in an annual investor forum which begins Dec. 16th.

The lowered outlook was due to weaker consumer spending and increased competition. The slowdown is likely to continue into the December quarter inclusive of the Single’s Day shopping festival. Alibaba saw sales total $84.5 billion during the week prior, which is a record for Alibaba but still a significant slowdown when compared with previous years.

Competitors such as JD (NASDAQ:).com Inc. (HK:) and Pinduoduo (NASDAQ.) Inc. have also increased the competition among Alibaba users. Pinduoduo’s number of annual active shoppers hit 849.9 million in the 12 months to June 2021, surpassing Alibaba’s figure. JD.com attracts new brands such as Starbucks (NASDAQ) and Estee Lauder Register at (NYSE:)

Consumer sentiment is being affected by the latest COVID-19 epidemic in China. “Looking ahead, we will continue to invest heavily into three growth engines of domestic consumption, globalization, cloud computing and data intelligence,” said Zhang.