Chinese tech giant Ant Group has released key data on the state of its fintech operations in the lead-up to its initial public offering (IPO).
On 25 August Ant Group submitted its listing application documents to both the Shanghai Stock Exchange STAR Board and the Hong Kong Stock Exchange, in preparations for a dual listing on both bourses that will see the issuance of 30 billion new shares, equivalent to 10% of post-issuance total equity.
According to the documents Ant Group posted operating revenues of 120.6 billion yuan in 2019, while also seeing net profits of 18.07 billion yuan.
Ant Group’s revenues are divided into three separate areas, comprised of digital payments and commercial services, digital fintech services and innovation services.
Of these three digital fintech services accounted for 56.2% of operating revenues in 2019, at 67.84 billion yuan in total, while in the first half of 2020 this share rose even higher to 63.4%.
As its mainstay operation Ant Group’s Alipay payments platform has over 1 billion active annual users, and 711 million active monthly users, as well as over 80 million active vendors.
In addition to payments Ant Group had 730 billion active users of its digital financial services platforms in 2019, which cooperate with more than 2000 financial institutions.
Ant Group’s online wealth management and insurance platforms are currently the largest in China – its wealth management operations have 4.1 trillion yuan in assets under management, while its insurance platforms saw 51.8 billion yuan in premiums last year.
Ant Group’s micro-loan balance is 2.1 trillion yuan, including 1.7 trillion yuan in consumer loans and 400 billion yuan in micro and small-enterprise loans.
98% of funds for loans come from approximately 100 cooperating banks, and the issuance of asset-backed securities.
Ant’s online credit platforms – Huabei (花呗) and Jiebei (借呗) – provided their services to approximately 500 million customers in 2019.