Alibaba Group, which is under “antitrust” investigation, released its third quarter earnings report for fiscal year 2021 on the Hong Kong Stock Exchange on November 2, 2020, and made its first statement on the restructuring of Ant Group: there is significant uncertainty about the listing of Ant Group.
One step closer to becoming the world’s largest IPO in history, Ant Group announced on the eve of its IPO, November 3, 2020, that it was suspending its plans for a dual listing and initial public offering on the Science and Technology Board of the Shanghai Stock Exchange and the Hong Kong Stock Exchange.
Three months after the event, Ant Group is rumored to be reorganized as a mainland central bank-regulated financial holding company, scheduled to be completed in mid-February, while the listing is already far away.
In its earnings release, Alibaba, in response to the Ant Group’s re-listing process, said that due to significant changes in China’s fintech regulatory environment, Ant Group is in the process of developing a rectification plan, which is still subject to regulatory procedures. As a result, “there is significant uncertainty regarding Ant Group’s business prospects and listing plans.”
Ali also said that it is not yet possible to fully and accurately assess the impact of these changes and uncertainties on Alibaba Group and that an update will be provided to the market after the Ant Group’s rectification plan has complied with the regulatory authorities’ procedures.
Zhang Yong, chairman of the board and chief executive officer of Alibaba Group, said that Ant’s suspension of its IPO and the antitrust investigation of Ali Group is an important opportunity to calmly reflect and improve itself.
Ali today announced its financial results for the third quarter of fiscal year 2021, with revenue reaching CNY 221.08 billion and net profit reaching CNY 59.21 billion. The earnings report showed that Ant contributed $735 million in profit to Alibaba in the third fiscal quarter.
Recent Comments