Alibaba announced on the Hong Kong Stock Exchange that it voluntarily converted to dual primary listing on the Hong Kong Stock Exchange.
Alibaba announced on the Hong Kong Stock Exchange on the morning of August 23 that on August 28, 2024, the company voluntarily changed its secondary listing on the Hong Kong Stock Exchange to a primary listing, which will take effect. On the effective date, the company will be listed on both the Hong Kong Stock Exchange and the New York Stock Exchange, and the stock symbol "S" will be removed from the company's stock abbreviation on the Hong Kong Stock Exchange's Hong Kong dollar and RMB counters. This voluntary conversion to dual primary listing does not involve the issuance or financing of new shares by our company.
China International Capital Corporation (CICC) previously analyzed that Alibaba has met most of the requirements for inclusion in the Hong Kong Stock Connect. If the company successfully completes the dual major listing conversion by the end of August, it is expected to meet all necessary conditions before the Hong Kong Stock Connect inspection day on September 5th and may be included in the adjustment near September 9th.
Morgan Stanley's view is similar to that of CICC. The institution stated that if the conversion to become a major listed company in Hong Kong is completed before the end of this month, the company's stock may join the Shanghai Hong Kong Stock Connect as early as September 9th 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 15th, Alibaba Group announced its performance for the first quarter of the fiscal year 2025 (ending on June 30, 2024), achieving a revenue of 243.236 billion yuan (RMB, the same below), a year-on-year increase of 4%.
In terms of profit 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 RMB 40.69 billion, a year-on-year decrease of 9.4%. According to this calculation, Alibaba achieved an average daily operating revenue of approximately 2.7 billion yuan and a daily net profit of 260 million yuan during this period.
As for the reasons for the decline in profits, the financial report shows that it is mainly due to a decrease in operating profits and an increase in investment impairment, partially offset by changes in the valuation of Alibaba's equity investments based on market value.
In terms of stock price, Alibaba's Hong Kong stock rose 2.13% yesterday, to HKD 81.65 per share. Alibaba's US stock fell slightly by 0.69% to $82.95 per share.