U.S.-listed shares of Alibaba took a hit, dipping over 8% in pre-market trading. The slide followed the company's decision to abandon the full spin-off of its Cloud Intelligence Group due to U.S. chip export restrictions. Alibaba, in its earnings release, cited challenges arising from U.S. chip export restrictions, making it harder for Chinese firms to secure critical chip supplies. The company, originally planning to publicly list its Cloud Intelligence Group, expressed concerns about achieving the intended shareholder value enhancement under the current circumstances.

Despite this setback, Alibaba reported Q3 net income of 27.7 billion yuan ($3.8 billion), slightly below analysts' expectations. Revenue, on the other hand, met expectations at 224.79 billion yuan ($31 billion), showing a 9% year-over-year increase. In a notable announcement, Alibaba even declared its first-ever annual cash dividend for 2023, approving $0.125 per ordinary share or $1 per American depositary share (ADS). The aggregate dividend amount will total approximately $2.5 billion.