BOC International believes that this sale will have an impact on Alibaba's one-time financial losses, but it will not affect the adjusted operating profit.
The Zhitong Finance App learned that BOC International released a research report saying that Alibaba-SW (09988) announced a few days ago that the company and another minority shareholder agreed to sell 100% of Yintai's shares to a purchasing party consortium composed of members of the Youngor Group and the Yintai management team. Alibaba currently holds about 99% of Yintai. Alibaba's total proceeds from the sale of Yintai are about 7.4 billion yuan, and the estimated loss from the sale is 9.3 billion yuan.
BOC International believes that this sale will have an impact on Alibaba's one-time financial losses, but it will not affect the adjusted operating profit. Also, because Yintai's overall revenue and profit are small, the impact on Alibaba's total revenue is less than 1%. However, it is significant that the Group's main focus is on the core platform and Alibaba Cloud's strategic transformation. The bank believes that Alibaba may still have some business adjustments in the future.