Proactive Investors - Alibaba Group (NYSE:BABA) jumped in Wednesday’s pre-market trading after co-founder Jack Ma reappeared to show support for the firm’s ongoing restructuring efforts.
Ma, who has spent recent years away from the limelight, told staff in an internal memo of his backing for the Chinese e-commerce giant’s move to split into six units, made last year.
“We must not only have the courage to admit and correct yesterday's problems in a timely manner but also make reforms for the future,” he said.
“This year, amid the many doubts and pressures on the company internally and externally, I saw the birth of a strong and brave Alibaba team.”
The split marks Alibaba’s largest shake-up in its 25-year history, with the company appearing to face a difficult period in the months after the move.
Listings of its cloud and logistics units had been announced before being scrapped, for instance, while competition has heated up from low-cost e-commerce rivals, such as PDD Holdings and ByteDance-owned Douyin.
Chief executive Eddie Wu has also been appointed since, with Ma using the post to back Alibaba’s new boss, alongside chairman Joe Tsai.
Shares climbed 1.6% to US$74.18 in pre-market trading.