The fintech giant Jack Ma Ant Group Co. likely to see gains increase by around 21% in the three months to September despite a shake-up requested by Beijing.
As is known, the Chinese government is trying to control the fast growing technology giant in the country.
Fintech firms contributed 5.81 billion yuan to Alibaba Group Holding Ltd.'s revenue, according to a filing shown Thursday.
Based on Alibaba's one-third stake in Ant, that translates to about 17.6 billion yuan in profit for the September Ant quarter, a 21% increase from a year earlier. Ant's earnings lag a quarter behind Alibaba.
Launching Bloomberg in Jakarta, Friday (25/2/22) the higher profit was due to the increase in net profit from investments owned by Ant Group.
The gains come just days after Chinese authorities asked state-owned companies and giant banks to start fresh checks on their financial exposure and other relationships with Ant in a sign of renewed scrutiny.
China began a campaign to rein in its tech giant after thwarting Ant's $35 billion initial public offering in late 2020.
The crackdown has grown into an attack on every sector of China's tech as Beijing seeks to end the dominance of a few heavyweights and create a more equitable distribution of wealth.
As part of a government-ordered restructuring, Ant has increased its capital base to 35 billion yuan and moved to build a firewall in the Alipay ecosystem, which has one billion users, to services such as wealth management, consumer lending and delivery.
Consumer loans made together with banks are separated from the "Jiebei" and "Huabei" brands. Assets under management at the Yu'ebao money market fund, once the largest in the world, fell more than a third last year to 765 billion yuan in December.
Alibaba on Thursday reported its slowest revenue growth since going public, as China's crackdown on its technology sector has impacted the finances of the e-commerce giant.