Jack Ma-backed financial services firm Reorient warns of deeper H1 loss

Yunfeng Financial

07/07/2016 02:31

HONG KONG, July 7 (Reuters) - Reorient Group Ltd  0376.HK , 
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 ($28 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 Ma, who prospered with the rise of 
e-commerce giant Alibaba Group Holding Ltd  BABA.N , agreed to 
invest HK$2.7 billion ($348 million) take a controlling 56 
percent stake in Reorient in June last year.  urn:newsml:reuters.com:*:nL3N0YN1TG 
     
    ($1 = 7.7575 Hong Kong dollars) 
 
 (Reporting by Donny Kwok; Editing by Kenneth Maxwell) 
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters 
Messaging: donny.kwok.reuters.com@reuters.net)) 
 
Keywords: REORIENT GROUP RESULTS/