The studio said yesterday (Jan 26) it expects to report a loss of as much as HK$600 million for the 2014 fiscal year due to production delays, advertising-sales declines and asset-impairment provisions. Alibaba Pictures has blamed misstated tax payments and other accounting on lax internal controls by the company's previous management team, raising questions about Alibaba's due diligence before the deal. Shares of the film unit rose 6.4 per cent to HK$1.67 as of 10.30am in Hong Kong trading today. The stock has gained 20 per cent this year, compared with a 5 per cent increase in the city's benchmark Hang Seng Index. A spokeswoman for Alibaba Group declined to comment. BLOOMBERG