Ant Group saw an estimated 79% decline in quarterly profit as the company accelerates its spending on AI, large language models, and global payment services.
The profit drop is an estimate based on Bloomberg calculations derived from earnings data released by Alibaba Group, which owns a third of the fintech company.
Ant Group contributed 375 million yuan to Alibaba for the three months ended December 31, translating to an estimated 1.13 billion yuan in total profit.
In its own separate reporting period for the three months ended March, Alibaba recorded a 3% rise in revenue.
The recent drop follows a 91% profit decline in the previous quarter.
The operator of the Alipay app is actively searching for new revenue streams following a regulatory overhaul that concluded around two years ago.
Expanding beyond domestic lending
Chinese regulators previously capped the company’s lending capacity, prompting moderate growth in its online loan business.
Its consumer finance affiliate, Chongqing Ant Consumer Finance, currently has an estimated lending limit of 620 billion yuan.
To diversify its operations, Ant Group has directed hundreds of millions of dollars into digital healthcare and robotics.
The company launched a health application called AQ, which reportedly reached 140 million users by September.
The firm also showcased a demo of its first humanoid robot last year. It claims the robot could eventually provide medical consultations and perform basic tasks.
Global ambitions and valuation
The company is scaling its international cash management operations.
Its Singapore-based global division generated US$3 billion in revenue in 2024, with growth of approximately 25% in 2025.
This sustained revenue growth has been viewed by analysts as potentially paving the way for an initial public offering of the international unit.
A share repurchase programme in 2023 valued the overall company at approximately US$79 billion.
This marks a sharp contrast to the US$280 billion valuation the firm commanded in late 2020. Regulators suspended its dual listing in Shanghai and Hong Kong at the time.
Featured image credit: Edited by Fintech News Hong Kong, based on image by evening_tao via Magnific
