Home / Business and Economy / Ant Group's Profit Plunges 60% as Alibaba Invests in New Initiatives
Ant Group's Profit Plunges 60% as Alibaba Invests in New Initiatives
29 Aug
Summary
- Ant Group's net profit dropped 60.5% in Q1 2025
- Alibaba attributes decline to investments in new growth areas
- Ant Group and Alibaba co-founded by Chinese billionaire Jack Ma
According to the latest financial report, Chinese fintech company Ant Group experienced a significant decline in its net profit during the first quarter of 2025. The company's net profit plummeted by 60.5% to 4.74 billion yuan ($662.7 million) in the three-month period ending March 31, 2025.
Alibaba, which holds a 33% stake in Ant Group, reported the earnings and attributed the decrease to "investments in new growth initiatives and technologies, and the decrease in fair value of certain investments." Both Ant Group and Alibaba were co-founded by Chinese billionaire Jack Ma.
The sharp drop in Ant Group's profitability highlights the challenges the fintech company is facing as it navigates the rapidly evolving financial technology landscape. Despite the setback, Ant Group remains a major player in the Chinese fintech industry and continues to explore new opportunities for growth and innovation.
