According to people familiar with the matter, soft bank (46.75, 2.02, 4.52%) group’s net profit in 2020 as of the end of March was around 4.5 trillion yen, which set a record high for Japanese enterprises, and benefited from the huge profits from the listing of multiple investment targets of Softbank vision fund.
Previously, Japanese companies had a record high of 2.4939 trillion yen in fy2017 (as of march2018). In the previous fy19, Softbank group had a record loss of y96.5 billion, and its performance is recovering significantly.
What drives the performance of Softbank group is the vision fund business. The fund has never invested in the IPO phase for IT companies with global potential. If the invested enterprise achieves growth and valuation increase, the added part will be included in the earnings of soft bank group’s financial report.
In fy2020, Softbank’s investment target companies have launched IPO successively. Coupang, the South Korean e-commerce giant, which was listed in March, has recently reached $73.1 billion. These enterprises brought hundreds of trillion yen book income to Softbank group, which greatly boosted the earnings on the financial statements.
Softbank group will officially release its fy2020 performance on May 12.