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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.