Alibaba.com (a listed subsidiary of the Alibaba Group; 1688.HK) reported that second-quarter profits rose 28%, beating analyst estimates, Bloomberg reported. China's largest business-to-business e-commerce company said increased customer spending helped drive net income up to US$72.6 million, exceeding the US$70 million median forecast by three surveyed analysts. Sales were up 19% to US$250 million. Chinese exporters are paying for more value-added services provided by Alibaba, helping to offset a drop in annual subscriptions caused by membership price increases and tightened supplier screening measures. Alibaba.com was rocked by scandal earlier this year when it was revealed that a clique of internal sales people were collaborating with criminals to defraud foreign companies. The company has had other troubles as well, including a public dispute over founder Jack Ma's decision to quietly spin off the AliPay unit without notifying Yahoo (YHOO.NASDAQ), the company's largest shareholder; that dispute was resolved last month. The company also ended a partnership with eBay (EBAY.NASDAQ) to offer the Paypal online payment service to Aliaba.com users. Alibaba.com shares are down 36% year-to-date.