Jack Ma-Backed Ant Profit Falls 83% After Regulatory Clampdowns

Ant Group issued a dividend of 3.9 billion yuan and 10.5 billion yuan, respectively in March and December last year. Photo: Bloomberg

(Bloomberg) — Ant Group Co. Ltd.’s profit drop accelerated in the three months that ended in September, falling 83% after China’s regulatory crackdown and a decrease in valuation of overseas equity investments.

The Hangzhou-based company contributed 1 billion yuan ($145 million) to Alibaba Group Holding Ltd.’s earnings, a filing showed Thursday. Based on Alibaba’s one-third stake in Ant Group that translates to an estimated 3 billion yuan of profit for Ant Group. That compares with a 63% fall in the previous quarter. Ant Group’s earnings lag a quarter behind Alibaba’s.