Business Maverick: Jack Ma’s Ant Incurs a 63% Profit Plunge Amid Overhaul

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 62 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 84%

Business News News

Business Business Latest News,Business Business Headlines

Ant Group Co. incurred a steeper profit decline in the three months ended in June, as the fintech giant molds itself to appease Chinese regulators.

The Hangzhou-based company contributed 2.4 billion yuan to Alibaba Group Holding Ltd.’s earnings, a filing showed Thursday. Based on Alibaba’s one-third stake in Ant, that translates to an estimated 7.3 billion yuan of profit for Ant’s June quarter, down 63% from a year earlier. Ant’s earnings, which lag a quarter behind Alibaba’s, were partly hurt by a drop in the value of its investments.

Its consumer finance unit is raising 10.5 billion yuan in a scaled-down capital boost from investors after China Cinda Asset Management Co. unexpectedly backed out of its investment plan this year. A subsidiary of Sunny Optical Technology Group Co. will take 1.1 billion yuan of Chongqing Ant Consumer Finance Co.’s capital, for a 6% stake. Jiangsu Yuyue Medical Equipment & Supply Co. plans to add 524 million yuan, taking a 4.99% stake. Ant Group will contribute 5.25 billion yuan to retain its 50% holding, while a group of other backers are also investing. The investment proposal is still pending regulatory approval.

Initially catering to Chinese tourists traveling outside the country, the company has expanded the service into a backbone for cross-border payments known as that can be used by different wallets. For example, when customers of GCash from the Philippines travel to Korea, they can pay with GCash when they see the Alipay+ logo displayed at merchants., which allows businesses to build digital stores across platforms including Chope, AlipayHK and Touch ‘n Go. The company plans to generate income from servicing brands like Burger King that want an online presence in various apps.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Business Maverick: Chinese Stocks in US Soar, Heading for Best Month on RecordChinese stocks listed in the US are surging for a fourth day on Tuesday, a spectacular change in fortunes just weeks after pessimism toward the group peaked following the Communist Party Congress.
Source: dailymaverick - 🏆 3. / 84 Read more »

R40bn Transnet contracts linked to Chinese companies probed in biggest state capture case yet | Fin24The National Prosecuting Authority is investigating whether two Chinese rail groups made illegal payments to Gupta associate Salim Essa after they won contracts to supply around 700 locomotives to Transnet. | News24_Business JanTamb _Business JanTamb Lol people acting surprised that this happens ...it's Africa _Business JanTamb It is a travesty that the NPA is still 'investigating' after all this time. An uncaptured NPA would have started when the Gupta leaks started.
Source: News24 - 🏆 4. / 80 Read more »