Alibaba: Voluntary conversion to dual primary listing on the Hong Kong Stock Exchange on August 28
2024-08-24
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China Youth Network News On August 23, Alibaba issued an announcement on the Hong Kong Stock Exchange stating that it would voluntarily convert to a dual primary listing on the Hong Kong Stock Exchange.
Alibaba stated in the announcement that the company's conversion from secondary listing on the Hong Kong Stock Exchange to primary listing will take effect on August 28, 2024. 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 dual primary listing does not involve the company's new share issuance and financing. In addition, Alibaba's shareholders' meeting approved the appointment of PricewaterhouseCoopers Zhongtian and PricewaterhouseCoopers as accounting firms.
Data shows that since Alibaba's secondary listing in Hong Kong in 2019, most of its publicly traded shares have been transferred to Hong Kong. In terms of market capitalization and trading volume, Alibaba has always ranked among the top three Hong Kong stocks. In July 2022, Alibaba applied for a primary listing in Hong Kong.
On August 15, Alibaba released its results for the first quarter of fiscal year 2025 (the second quarter of natural year 2024) ending June 30, 2024. In this quarter, Alibaba's revenue was RMB 243.236 billion, a year-on-year increase of 4%; operating profit was RMB 35.989 billion, a year-on-year decrease of 15%; adjusted EBITA was RMB 45.035 billion, a year-on-year decrease of 1%; net profit attributable to ordinary shareholders was RMB 24.269 billion; net profit was RMB 24.022 billion, a year-on-year decrease of 27%.
On the same day, at Alibaba's earnings conference, Alibaba Group Chief Financial Officer Xu Hong said that Alibaba is seeking a major listing conversion in Hong Kong. The company will hold a shareholders' meeting on August 22. There is such a proposal in the shareholders' meeting. If the shareholders' meeting approves it, it is expected that the major listing conversion in Hong Kong can be completed by the end of August 2024. "As for whether to connect to the Hong Kong Stock Connect in the future, we still have to fulfill some procedures under the different rules of each exchange. We should follow the procedures and it can be achieved."
(Source: China Youth Network)
