Prosus NV issued a profit warning for its fiscal 2023 after a decline in profit at Tencent Holdings Ltd., the Chinese tech giant in which the Dutch investment firm owns a 26% stake.

Core headline earnings per share from continuing operations in the year ending March 31 are expected to fall by between 21% and 28%, or 50 cents to 68 cents, Prosus said in a trading statement Wednesday.

Tencent’s earnings in the period were depressed by regulatory crackdowns and China’s Covid Zero policy, which hurt consumer and corporate spending. However, its sales in January through March rebounded as the country reopened.

Prosus has been reducing its stake in Tencent to fund a share buyback, in an effort to create additional value for shareholders and reduce the discount between the stake owned in Tencent and the rest of the parts. It has reduced its holding from 29% over the last year.

Prosus is expected to publish its fiscal 2023 results on June 27. Its South Africa-based parent Naspers Ltd. also issued a profit warning.

Prosus shares fell 1.2% in Amsterdam as of 10:59 a.m., while Naspers shares were down 1.7% in Johannesburg.