Alibaba Nears First Big Deal Since Record Antitrust Fine bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.
(Feb 2): Billionaire Jack Ma’s Ant Group Co delivered about 14.5 billion yuan (US$2.3 billion) in profit in the quarter, right before Chinese regulators brought down the hammer on the financial technology giant’s record public offering and ordered it to scale back its sprawling business.
Ant contributed 4.8 billion yuan in profit to Alibaba Group Holding Ltd, according to the e-commerce company’s filing. Based on Alibaba’s 33% stake in Ant, that translates to 14.5 billion yuan in profit for Ant in the three months ended in September, as its earnings lag one quarter behind Alibaba. Ant declined to comment.
The earnings offer a taste of what investors will be missing out on after regulators abruptly halted the firm’s US$35 billion IPO in November. Growth is set to be curtailed in the future as regulators have issued a battery of proposals that threaten to curb its dominance in online payments and scale back its expansion into consumer lending and wealth management.
Jack Ma s Ant posted $2 3 billion profit before halt of IPO paymentssource.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from paymentssource.com Daily Mail and Mail on Sunday newspapers.
Alibaba’s projected to unveil its slowest pace of third-quarter sales growth in five years on Feb. 2 while it confronts potentially the biggest crisis of its two-decade existence. Uncertainty began in November when regulators first torpedoed Ant Group Co.’s record initial public offering, then launched a probe into the e-commerce firm. Alibaba shares have dropped 16% since Ant’s aborted debut, the worst performance on Hong Kong’s benchmark Hang Seng Index. That’s in stark contrast to arch foe Tencent Holdings Ltd., which had briefly neared a $1 trillion valuation after its stock reached new highs this week.
Ma’s company, once the standard-bearer for China’s fast-rising private firms and booming internet sphere, now faces penalties of as much as 10% of its revenue or some $7.8 billion if it’s found to have abused its market dominance. Executives may also face questions about how a possible crackdown on sister company Ant may hurt its outlook, given the latter firm pro
The Chinese giant is projected to unveil its slowest pace of third-quarter sales growth in five years on Tuesday, while confronting potentially the biggest crisis of its two-decade existence.