BABA(US:BABA) 券商中国·2025-07-03 12:12Core Viewpoint - Alibaba Group plans to issue zero-coupon exchangeable bonds totaling approximately HKD 12 billion, maturing in 2032, to fund cloud computing infrastructure and support international e-commerce development [1][3]. Group 1: Bond Issuance Details - The bonds will constitute Alibaba Group's unsecured and non-subordinated debt, with no periodic interest payments [2]. - The net proceeds from the bond issuance will be allocated to cloud computing infrastructure and international e-commerce business development [3]. - The bonds will reference Alibaba Health's common stock listed on the Hong Kong Stock Exchange, allowing Alibaba to fulfill its exchange obligations through the delivery of Alibaba Health shares, cash, or a combination of both [5]. Group 2: Impact on Alibaba Health - Even if all obligations are settled using Alibaba Health shares, Alibaba is expected to maintain control over Alibaba Health [6]. - Alibaba Group holds approximately 64% of Alibaba Health's shares, which is a consolidated subsidiary [7]. - The issuance of exchangeable bonds will not affect Alibaba Health's business operations or its collaboration with other Alibaba businesses [9]. Group 3: Future Investments and Growth - The issuance of exchangeable bonds is a common financing method, allowing companies to leverage favorable market interest rates for business development [12]. - Alibaba's planned investments in cloud computing and international e-commerce are seen as new growth engines for the future [14]. - Earlier this year, Alibaba announced plans to invest over CNY 380 billion in cloud and AI hardware infrastructure over the next three years, exceeding the total of the past decade [15]. Group 4: AI as a Growth Driver - In a recent shareholder letter, Alibaba's leadership emphasized that AI will be the core driver of transformation and growth in the next decade [17]. - The company views AI as a significant opportunity for future development and aims to enhance its competitiveness in the global technology sector [18]. - Alibaba is committed to leveraging its talent, technology, and resources to capitalize on the opportunities presented by AI and cloud technology [20].