SoftBank of Japan Posts 4 Trillion Won Loss... Impact of Didi Chuxing and Coupang Plunge
Announcement of 1 Trillion Yen Scale Share Buyback Plan
[Asia Economy Reporter Naju-seok] SoftBank Group reported a loss of 397.9 billion yen (4.1449 trillion won) on the 8th. SoftBank recorded a large-scale loss again after posting a loss of 1.4381 trillion yen in the first quarter of last year.
According to Bloomberg and others, SoftBank's poor performance reflects investment losses in Coupang and Didi Chuxing, which are managed by its Vision Fund. Didi Chuxing, in which the Vision Fund holds more than 20% stake, is currently valued below its IPO price. The Vision Fund was significantly affected by investments in Chinese startups.
Earlier, SoftBank Chairman Masayoshi Son announced a policy to suspend new investments in China and to expand investments in other regions for the time being.
Additionally, stock price losses of Korean Coupang and others were also cited as factors for the poor performance.
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Regarding the stock price decline, SoftBank also proposed a plan to repurchase up to 14.6% of its own shares, spending up to 1 trillion yen.
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