Ant Group's Profit Soars Amidst Investment Gain
Hangzhou-based Ant Group Co. has witnessed a remarkable surge in quarterly profits, driven by an investment gain. This significant profit boost benefits Alibaba Group Holding Ltd., which holds a one-third stake in Ant.
Alibaba's earnings report indicates that Ant contributed an estimated 13.6 billion yuan ($1.8 billion) to the group's profits during the three months ending September 30. This gain reflects a notable contrast to the previous year, when Ant reported an investment loss.
In the December quarter, Alibaba experienced its fastest revenue growth in over a year due to its commerce business turnaround and advancements in AI. The positive sentiment towards China's tech sector has also contributed to Alibaba and Ant's success.
Ant has made significant strides in AI, allocating its resources to humanoid robot development. It has also introduced new services like "Zhixiaobao," an intelligent personal assistant integrated into its Alipay mobile payment platform.
In 2023, Ant implemented significant business overhauls, including the establishment of independent boards for its international, database, and digital technology units to facilitate potential spinoffs. These measures align with Jack Ma's decision to relinquish control of Ant in 2023.
Seeking to mitigate slower domestic growth, Ant has expanded its international operations. It recently secured $6.5 billion in loans to refinance an offshore credit line and proposed a share buyback of up to 7.6% of its total shares in 2023.
Despite its previous regulatory setbacks, Ant is awaiting a financial holding company license, which could pave the way for a future IPO.