Alibaba registers one-time gain of $9.7bn upon receipt of equity interest in Ant Financial

Maria Nikolova

Alibaba reported a one-off gain of RMB69.2 billion (US$9.7 billion) upon the receipt of the equity interest in Ant Financial.

The financial report of Alibaba Group Holding Limited (NYSE:BABA) for the quarter to end-September 2019 is out, with the results showing that the earnings have been significantly affected by the recent deal with Ant Small and Micro Financial Services Group Co., Ltd.

During the quarter to September 30, 2019, Alibaba registered net income attributable to ordinary shareholders of RMB72,540 million (US$10,149 million), and net income of RMB70,748 million (US$9,898 million), which included a significant one-time gain recognized upon the receipt of the 33% equity interest in Ant Financial.

On September 23, 2019, Alibaba became a 33% equity stakeholder in Ant Financial. Alibaba recognized a one-time gain of RMB69.2 billion (US$9.7 billion) upon the receipt of the equity interest in Ant Financial. With this equity stake, the profit sharing arrangement under which Alibaba received 37.5% of Ant Financial’s pre-tax profits has terminated.

Alibaba notes that Ant Financial has expanded its user base and business scale by building a unique value proposition through its ability to offer comprehensive financial solutions, including digital payment and digital finance services. As of June 30, 2019, annual active users of Alipay and its local e-wallet partners increased to approximately 1.2 billion globally, of which about 900 million were users from China.

Ant Financial was spun out of Alibaba in 2011, when the e-commerce giant separated its Alipay payments platform from the other operations of the company. Alipay was established in 2004 to offer a trustworthy payment system for Alibaba’s e-commerce site Taobao.

Read this next

Executive Moves

Investall hires ex-DriveWealth Steve Cortright as CEO

Investall is an AI-driven mobile trading platform for personal finance and investing that delivers AI-driven trading for thousands of equities and major cryptocurrencies.

Digital Assets

SIX integrates CryptoCompare’s cryptocurrency data feed

SIX will provide digital asset data to its clients via the same delivery channels as its leading reference, pricing, corporate actions, regulatory, tax and ESG data.

Digital Assets

CME Group to launch reference rates and indices on Avalanche (AVAX), Filecoin (FIL), and Tezos (XTZ)

Several leading crypto exchanges and trading platforms will provide pricing data for these new benchmarks, starting initially with Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital.

Technology

OneConnect launches operation in ADGM further expanding in Middle East

OneConnect has launched its regional operations in Abu Dhabi Global Market (ADGM), the leading international financial centre of the capital of the UAE, after having worked together on the creation of the ADGM Digital Lab which was launched in April 2021. The ADGM Digital Lab is a marketplace and industry sandbox to encourage the development […]

Industry News

Bitso powers crypto into Via’s payroll platform as remote work triples by 2027

“We are also allowing companies to hire international talent without worrying about administrative issues.”

Retail FX

Vantage partners with FinaCom for external dispute resolution and up to €20,000 protection per client

Vantage has joined the Financial Commission (FinaCom) as a member, thus gaining access to the external dispute resolution body’s range of services and membership benefits, including the unbiased resolution process facilitated by FinaCom, and the protection of up to €20,000 per client, covered by the FinaCom’s compensation fund.

Digital Assets

LMAX Digital onboards Bryan Christian and Cassandra Cox to lead sales

Institutional cryptocurrency exchange LMAX Digital continues to undergo a series of changes in its top ranks as it continues to build its presence globally. Two industry veterans, Bryan Christian and Cassandra Cox, have joined the group as its newest sales directors in Europe and USA.

Digital Assets

Cake DeFi introduces Ethereum Staking with 5% returns

Cake DeFi, a Singapore-based DeFi platform, is launching its Ethereum (ETH) staking service for retail and institutional customers.

Retail FX

FX trading rebounds 405pct at Saxo Bank in September

In a volatile market driven by Russia-Ukraine headlines, FX trading volumes through Saxo Bank have rebounded strongly in September to the highest level in three months.

<