FAST NEWS: JF SmartInvest’s loss widens on higher expenses, investment loss

The Latest: Stock-trading educator JF SmartInvest Holdings Ltd. (9636.HK) said Friday it expects to report a net loss of 170 million yuan ($23.8 million) to 180 million yuan for the first half of 2024, more than quadruple its net loss of 38 million yuan in the year-ago period.

Looking Up: The company improved its product portfolio during the period through spending on new business lines, R&D investment and the strengthening of its investment and research capabilities.

Take Note: Most of its 11% increase in operating expenses for the period, which totaled 102 million yuan, stemmed from an investment loss of 95 million yuan, and 21 yuan million yuan in share-based compensation expense.

Digging Deeper: JF SmartInvest is China’s leading online educator for investors, one of the first batch of organizations in China to be qualified as a securities investment consultancy. It was listed in Hong Kong in March last year, becoming the exchange’s first stock categorized as securities investment education for Chinese. As its business took a hit from recent weakness in China’s stock market and the cooling of investor enthusiasm, the company launched a stock learning tablet called “Enjoy-Stock Pad” last month, equipped with software that allows users to easily access all of its services, from online courses to investment and research tools.

Market Reaction: JF SmartInvest’s shares fell on Monday, closing down 3.7% at HK$8.59 by the midday break. The stock now trades 45.9% below its IPO price of HK$17.

Translation by A. Au

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