You are here

Reorient warns of deeper H1 loss

[HONG KONG] Reorient Group Ltd, a Hong Kong-based financial services firm controlled by a fund backed by Chinese billionaire Jack Ma, said it expected to post a much wider loss for first- half 2016 as it increased spending on staffing and technology.

The firm, due to release first-half results in August, said in a filing to the Hong Kong bourse late on Wednesday that it expected to record a consolidated net loss in excess of HK$220 million (S$38.3 million) for the first half, compared with a net loss of HK$52.18 million for the same period in 2015.

A decrease in consultancy and advisory revenue from its corporate finance business and a drop in the value of financial assets during the period also hit earnings, Reorient said.

A fund backed by Mr Ma, who prospered with the rise of e-commerce giant Alibaba Group Holding Ltd, agreed to invest HK$2.7 billion take a controlling 56 per cent stake in Reorient in June last year.

REUTERS

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes