Alibaba, the Chinese ecommerce group, replaced its chief executive yesterday after shares dipped below $80 this week, the lowest since September’s record-breaking initial public offering.

The group said Daniel Zhang, chief operating officer, would replace Jonathan Luas chief executive from Sunday as it reported that sales in the first three months of the year rose to Rmb17.42bn ($2.8bn) from Rmb12bn, eclipsing Wall Street’s forecasts of Rmb16.8bn. Revenues for the quarter increased 45 per cent year on year. But net profit fell 49 per cent to $463m, hit by a share-based compensation expense. That was 3 per cent higher than analysts’ estimates.

The move to replace Mr Lu, who will remain a vice-chairman, follows a steady decline in Alibaba’s share price since November, when it touched a post-IPO high of $119.15. The move appeared designed to bolster confidence, and the stock was up 7.7 per cent in early afternoon New York trading.