Ge Long Hui·2025-09-11 13:03Group 1 - The company announced the issuance of zero-coupon convertible preferred notes totaling approximately $3.2 billion, maturing in 2032, to be offered under Regulation S of the U.S. Securities Act for offshore transactions [1] - The net proceeds from the note issuance, estimated to be around $3.13 billion after deducting initial buyer discounts and estimated issuance costs, will be used for general corporate purposes, with a strategic focus on enhancing cloud infrastructure capabilities and expanding international business operations [1] - Approximately 80% of the proceeds will be allocated to enhancing cloud infrastructure, including expanding data centers, upgrading technology, and optimizing services to meet growth demands, while the remaining 20% will focus on operational investments to improve market position and efficiency [1] Group 2 - The note issuance is part of the company's strategy to optimize its capital structure by taking advantage of favorable market conditions and financing costs, with the expectation that the low-cost, zero-interest notes will reduce overall capital costs [2] - The company anticipates that the capped call transactions will mitigate potential dilution for shareholders, reflecting confidence in its business strategy and long-term share value by effectively raising the conversion price to $235.46 [2] - The note issuance is not expected to impact the company's strong credit profile, ensuring continued flexibility in creating long-term value for shareholders [2]