Ant Group’s quarterly profit, boosted by investment gains, skyrockets 50x

Ant Group Co., the Chinese fintech giant founded by Jack Ma, reported a staggering 50-fold increase in its quarterly profit, largely driven by a net investment gain. The Hangzhou-based company, which operates the Alipay mobile payments platform, generated nearly 4.49 billion yuan ($618 million) in profit during the three months ending September 30, marking a significant turnaround from the previous year.

This exceptional performance is particularly noteworthy as it helped Alibaba Group Holding Ltd., which holds a one-third stake in Ant, achieve an estimated 13.6 billion yuan in profit for the same period, according to Bloomberg’s calculations. The remarkable gain was attributed to a boost from investment activities, compared to a loss in such activities during the same quarter in 2024.

The results contrast with a more modest 193% increase in Ant’s profit during the second quarter, further underlining the substantial impact of the investment gains. While Ant declined to provide further comment, the figures are indicative of the company’s recovery and growth after a difficult period.

In tandem with Ant’s success, Alibaba also posted its strongest revenue growth in over a year in the December quarter. This surge was fueled by a rebound in its e-commerce business and significant progress in the burgeoning field of artificial intelligence (AI). These results are seen as part of a broader positive shift in China’s tech sector, driven in part by renewed support from the government.

In a highly publicized move, President Xi Jinping recently met with key entrepreneurs, including Ma, signaling Beijing’s endorsement of the private sector. This came as Jack Ma, who has stepped down from active management roles at both Alibaba and Ant, made a rare appearance at Ant’s 20th anniversary celebration in December. During his speech, Ma discussed the company’s future prospects, highlighting the transformative potential of AI, while acknowledging the challenges Ant continues to face.

Ant has been making significant strides in AI, setting up a dedicated unit last year focused on humanoid robot development. The company also launched a suite of new services, including Zhixiaobao, a “life assistant” app integrated into Alipay, which offers functions such as meal ordering, taxi hailing, and other daily tasks.

Amidst these advancements, Ant has also undergone organizational changes, establishing independent boards for its international, database, and digital technology units, signaling the possibility of future spinoffs as the company looks to evolve its business model in the face of regulatory pressures.