Alibaba Transforms into a Dual Primary Listing in Hong Kong
On the morning of August 23, Alibaba announced on the Hong Kong Stock Exchange that the company’s voluntary change from its secondary listing on the Hong Kong Stock Exchange to a primary listing will take effect on August 28, 2024. From the effective date, the company will have a dual primary listing on the Hong Kong Stock Exchange and the New York Stock Exchange, and the stock mark “S” will be removed from the company’s stock abbreviation in Hong Kong dollars and RMB counters on the Hong Kong Stock Exchange. This voluntary conversion to a dual primary listing does not involve the issuance of new shares or financing by the company.
CICC previously noted in its analysis 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 is expected to meet all the necessary conditions before the Hong Kong Stock Connect inspection day on September 5, and it is likely to be included in the Hong Kong Stock Connect during the adjustment near September 9.
Similarly, Morgan Stanley has stated earlier that if the conversion to a primary listed company in Hong Kong is completed before the end of this month, the company’s stock could be included in the Shanghai-Hong Kong Stock Connect as early as September 9, bringing in $12 billion in funds over the next six months, accounting for about 7% of Alibaba‘s total circulation shares.
On the evening of August 15, Alibaba Group announced its first quarter results for the 2025 fiscal year (ending June 30, 2024), achieving a revenue of 243.236 billion yuan, a year-on-year increase of 4%.
In terms of profit indicators, Alibaba‘s net profit for the first quarter of the 2025 fiscal year was 24.022 billion yuan, 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 about 2.7 billion yuan and a daily net profit of 260 million yuan during this period.
The reason for the profit decline, as shown in the financial report, is mainly due to the decrease in operating profit and the increase in investment impairment, which is partly offset by the changes in the valuation of equity investments held by Alibaba.
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