TOKYO (Reuters – SoftBank Group Corp lost 397 billion yen ($3.5 Billion) in July-September. It was hit by declining valuations of the Vision Fund unit’s tech portfolio.

This loss is compared to a profit in the same time period last year of 628 billion Japanese yen.

A quarterly loss in investment of 1.167 trillion Japanese yen was reported by the Vision Fund unit.

SoftBank CEO Masayoshi Son refers to SoftBank’s role as “a goose that lays golden eggs”. This is referring to the company’s stakes in startup companies that make it to market. However, initial public offerings (IPOs), have declined and many of its most valuable assets dropped during the quarter.

Kirk Boodry from Redex Research stated that the strategy to create the illusion of greater value through making public things has not worked in this year’s case.

SoftBank’s China portfolio continued to suffer from low valuations due to a regulatory crackdown. Chinese ecommerce company is the largest asset of the group. Alibaba (NYSE:) fell about a third during the three-month period ending September

The Vision Fund’s India portfolio, which includes Ola ride-hailer Ola as well as Delhi logistics company Delhivery targeted listings are some of its bright spots.

SoftBank is reducing stakes after expiry of lockup periods and focusing instead on investments through its Vision Fund, which has $40 billion committed capital from SoftBank.

($1 = 113.3500 yen)