Abstract This thesis aims to systematically and comprehensively study the profit models in Chinese Internet industry. The development of Internet enterprises is inseparable from the development of Internet technology. With the rapid growth of Internet Technology in China, the Internet industry becomes an active power in social and economic development. Profit models are the strategic and crucial factors for an enterprise. This thesis chooses Alibaba Group as an example to analyze its profit model, because it is one of the largest e-commerce enterprises in China Internet industry. The profitability and financial performance of Alibaba Group are at a leading position in China ecommerce businesses. Alibaba Group could be views as an integrated operation system which contains online trading platform, online payment medium, clouding computing services, internet infrastructure and logistics business. Alibaba Group has clear market positioning as well as unique business and profit model. This thesis refers to a large number of relevant literature and information in China and abroad about profit model, based on the experience of previous studies, combined with the background of China’s market mechanism, analyze and evaluate the profit models in Alibaba Group. From this thesis, the research of profit model in Alibaba Group is helpful for both the company itself and its stakeholders. A deep understanding of Alibaba Group’s core competence could help the investors to determine their investment portfolio and also help the company to realize its financial target and to sustain in the competitive market. Key words: Profit model, e-commerce, China Internet industry, Alibaba Group