BOCOM INTL released a research report stating that BABA-SW (09988) recently announced that the company and another minority shareholder agreed to sell 100% of the equity of Intime to a purchasing consortium made up of members from Youngor Group and the Intime management team. Alibaba currently holds about 99% of Intime. The total amount from the sale of Intime is approximately 7.4 billion yuan, and a loss of about 9.3 billion yuan is expected from the sale.
BOCOM INTL believes that this sale will impact Alibaba's Earnings Reports with a one-time book loss, but it does not affect the adjusted Operating profit. Furthermore, due to Intime's overall revenue and profit being relatively small, its impact on Alibaba's total revenue is less than 1%. However, it is significant for the group's strategic transformation focusing on core platforms and Alibaba Cloud. The bank believes that Alibaba may have some Business adjustments in the future.
