With the release of Alibaba's first quarter report, Ant Group's full year 2023 performance has also been officially disclosed.
Interface News reporters noticed that due to Alibaba's strategy of delaying the recognition of investment gains and losses by one quarter, Ant Group's revenue lags behind it by one quarter. Due to Ant Group contributing RMB 2.57 billion in investment income to Alibaba during the same period in the fourth quarter of 2023, based on Alibaba's 33% stake in Ant Group, Ant Group achieved a net profit of approximately RMB 7.79 billion in the fourth quarter of 2023, a year-on-year decrease of 19%.
From a quarterly perspective, in the first quarter of 2023, Ant Group's net profit was 13.224 billion yuan, a year-on-year increase of 18%; In the second quarter, due to the huge penalty imposed by regulatory authorities, the net profit was 2.564 billion yuan, a year-on-year decrease of 65%; In the third quarter, due to an increase in net losses from investments in projects such as India, the net profit was 242 million yuan, a year-on-year decrease of 92%.
According to Alibaba's financial report, Ant Group's net profit for the entire year of 2023 was approximately 23.82 billion yuan, a decrease of 23.7% compared to the same period last year. Ant Group's net profits for the full years of 2020, 2021, and 2022 were 57.53 billion yuan, 73 billion yuan, and 31.2 billion yuan, respectively.
In addition, Ant Group's consumer finance, fund sales, and insurance agency businesses have also disclosed their annual performance, and multiple financial business lines under Ant Group still maintain leading positions in the industry.
According to announcements from multiple listed companies, Chongqing Ant Consumer Finance Co., Ltd., a subsidiary of Ant Group, had a total asset value of 239.6 billion yuan in 2023, a year-on-year increase of 125.61%, ranking first among 31 licensed consumer finance companies in terms of asset size. However, during the reporting period, due to the rapid growth of assets leading to an increase in one-time provision, the company achieved a net profit of 152 million yuan, a year-on-year decrease of nearly 82%.
In terms of fund agency business, according to the annual report released by Hang Seng Electronics, Ant Fund achieved a revenue of 12.627 billion yuan in 2023, a year-on-year increase of 13.16%; Realized a net profit of 350 million yuan, a year-on-year decrease of 35.63%. Taking the largest non monetary fund with the widest caliber as an example, Ant Fund's ranking is undisputed as the top in the entire market.
In addition, in terms of insurance agency business, the official claim report released by Ant Insurance shows that in 2023, cooperative insurance companies have accumulated over 23.1 billion yuan in claims to users on the Ant Insurance platform, a year-on-year increase of 23%. Although specific performance data has not been disclosed for 2023, according to the released "2023 Insurance Yearbook", Ant Insurance's revenue in 2022 was approximately 6.7 billion yuan, with a net profit of 390 million yuan.
In terms of valuation, according to Alibaba's latest disclosure of Ant Group's equity incentive measures, in the 2023 fiscal year, expenses related to Ant Group's equity incentives have been reflected in the reversal of RMB 6.901 billion. This is due to the decrease in Ant Group's value in this fiscal year, which has led to an adjustment in the valuation of Ant Group's equity incentives granted to employees based on market value.
Alibaba expects that equity incentive fees will continue to be affected by changes in the fair value of related incentives and the number of incentives granted in the future. In July 2023, Ant Group announced that it would repurchase no more than 7.6% of its existing shareholders' shares. The repurchase price corresponds to a company valuation of approximately 567.1 billion yuan, which is a 70% decrease from its 2020 valuation.