China's largest e-commerce company Alibaba Group more than doubled its profit in the second quarter as it banked on its dominance in the world's fastest growing e-commerce market.

Alibaba's net profit in the three months ended on June 30 surged to US$707 million from US$273 million in the same period a year earlier, according to the quarterly earnings released by Yahoo! Inc, which owns 24 percent in the group.

Revenue soared 1 percent from a year ago to US$1.74 billion, according to the release.

The Hangzhou-based company taps China's booming e-commerce market and is adding a wide range of products, including mobile social networking applications to its portfolio, to fend off rivals such as Hong Kong-listsed Tencent Holdings and privately-owned JD.com.

The company is also eying an initial public offering in the United States after talks for a Hong Kong listing broke down over the issue of its management team keeping control after the IPO. Unlike the US, Hong Kong's listing rules don't permit a dual-class share structure that is preferred by Facebook and Google.

China's e-commerce expenditure may surpass that of the US this year and will reach 3.3 trillion yuan (US$532 billion) in 2015, Bain & Co said in its annual "China E-commerce Report" in August.

Alibaba more than doubles net earnings in Q2