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Alibaba announced on the Hong Kong Stock Exchange that it voluntarily converted to a dual primary listing on the Hong Kong Stock Exchange.

Alibaba announced on the Hong Kong Stock Exchange in the morning of August 23 that on August 28, 2024, the company's voluntary conversion from the secondary listing of the company on the Hong Kong Stock Exchange to the primary listing will take effect. On the effective date, the company will be dual-listed on the Hong Kong Stock Exchange and the New York Stock Exchange, and the stock symbol "S" will be deleted from the company's stock abbreviations in the Hong Kong dollar and RMB counters of the Hong Kong Stock Exchange. This voluntary conversion to a dual primary listing does not involve the company's new share issuance or financing.

CICC's previous analysis pointed out that Alibaba has met most of the requirements for inclusion in the Hong Kong Stock Connect. If the company successfully completes the dual primary listing conversion by the end of August, it will be expected to meet all necessary conditions before the Hong Kong Stock Connect inspection day on September 5, and may be included in the Hong Kong Stock Connect in the adjustment around September 9.

Morgan Stanley's view is similar to CICC's. The agency said that if the company's conversion to a major Hong Kong-listed company is completed before the end of this month, its shares may be included in the Shanghai-Hong Kong Stock Connect as early as September 9, and bring in $12 billion in capital inflows in the following six months, accounting for about 7% of Alibaba's total outstanding shares.

On the evening of August 15, Alibaba Group announced its performance for the first quarter of fiscal year 2025 (ending June 30, 2024), with revenue of 243.236 billion yuan (RMB, the same below), a year-on-year increase of 4%. ‍‍‍‍‍‍

In terms of profitability indicators, Alibaba achieved a net profit of 24.022 billion yuan in the first quarter of fiscal year 2025, a year-on-year decrease of 27%; adjusted EBITA decreased by 1% year-on-year to 45.035 billion yuan; non-GAAP net profit was 40.69 billion yuan, a year-on-year decrease of 9.4%. Based on this calculation, Alibaba achieved an average daily operating income of approximately 2.7 billion yuan and an average daily net profit of 260 million yuan during this period.

As for the reasons for the decline in profits, the financial report showed that it was mainly due to the decline in operating profits and the increase in investment impairment, which was partially offset by changes in the market value of equity investments held by Alibaba.

In terms of share price, Alibaba's Hong Kong shares rose 2.13% yesterday to HK$81.65 per share. Alibaba's US shares fell slightly by 0.69% to US$82.95 per share.