SoftBank’s Vision Fund posts $2bn profit, share weakness casts shadow

SoftBank Group Corp’s Vision Fund unit on Tuesday posted a 236 billion yen ($2.14 billion) profit in the first quarter after gains from listing portfolio companies were offset by falling shares in firms like e-retailer Coupang Inc.

The Japanese conglomerate posted record annual profit in May with executives pointing to further upside from Vision Fund investments such as Chinese ride-hailing firm Didi Global Inc. and “Uber for trucks” startup Full Truck Alliance Co. Ltd.

Those companies listed in New York during the quarter but Chinese regulatory action has subsequently hammered valuations, underscoring SoftBank’s China risk even as the group seeks to reduce dependence on its largest asset, a stake in Chinese e-commerce giant Alibaba Group Holding Ltd.

The turmoil is clouding the outlook for the group, whose shares have slipped a third from two-decade highs in March amid a record 2.5 trillion yen buyback which has since been completed. Shares closed up 0.9 percent ahead of earnings.

First-quarter group net profit fell 39 percent to 762 billion yen.

Still, SoftBank said its Vision Fund unit recorded gains of 310 billion yen after selling shares in delivery firm DoorDash Inc. and ridehailer Uber Technologies Inc.

SoftBank has also been investing in publicly listed shares through its SB Northstar trading unit. It held stakes in firms worth $13.6 billion at the end of June with the portfolio no longer including Microsoft Corp. or Facebook Inc. listed three months earlier.