Ant Group’s profit in June quarter surged 193%, marking a turnaround from its previous year’s decline following governmental restrictions. It reached approximately 7.5 billion as calculated by Bloomberg, based on Alibaba’s one-third ownership.
Earlier, the company witnessed a 10% decline in the previous quarter. The Hangzhou-based fintech company contributed 2.48 billion yuan ($343 million) to Alibaba Group Holding Ltd.‘s profits.
In March, Ant implemented substantial restructuring, establishing separate boards for its international, database and digital technology divisions to facilitate potential future separations. The organisation has increased its international presence to counterbalance domestic market slowdown.
These changes followed billionaire Jack Ma’s relinquishment of Ant’s control last year. Chinese authorities concluded their internet sector regulation by imposing fines exceeding $1 billion on both Ant and Tencent Holdings Ltd. in July last year.
For international expansion, Ant secured $6.5 billion in loans to replace an existing offshore credit facility, according to sources familiar with the matter in September.
Ant’s global operations developed its blockchain-powered treasury management system, Whale. Additionally, it collaborated with Singapore’s DBS Group Holdings Ltd. on a treasury token initiative to enhance inter-account fund transfers.
The organisation advanced in artificial intelligence, launching services including “Zhixiaobao”, a lifestyle assistance application integrating meal ordering, taxi services and other functionalities within Alipay.
In China, Ant is evaluating the sale of its Baihang Credit Co. stake whilst awaiting approval for a licence regarding Qiantang, as reported by Bloomberg in June.
The company initiated a share buyback of up to 7.6% last year, allowing investors like Fidelity Investments and T. Rowe Price Group Inc. to reduce their holdings. This arrangement valued Ant at approximately $79 billion, considerably below its $280 billion peak before regulatory intervention halted its public offering four years ago. The organisation awaits a financial holding company licence to potentially resume IPO plans.
Originally serving Chinese international travellers, the company developed Alipay+ as a cross-border payment infrastructure supporting various digital wallets. This network now serves 90 million merchants across 66 markets.
Alibaba, its affiliated company, reported revenue of 236.5 billion yuan for the quarter ending in September.