Alibaba announced higher conversion rates for its 2031 and 2032 convertible notes after declaring a US$1.05 per ADS dividend

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Alibaba Group Holding announced adjustments to the conversion rates of its convertible senior notes due 2031 and 2032, with effect from June 11, 2026, citing the annual cash dividend of US$1.05 per American depositary share (ADS) that it declared for fiscal year 2026 and the terms of the notes. Each ADS represents eight ordinary shares, and the dividend was US$0.13125 per ordinary share, declared in the results announcement of May 13, 2026. The company set out the adjustments in Hong Kong Stock Exchange announcements, which it furnished to the US Securities and Exchange Commission on June 18, 2026, in a Form 6-K, the report a foreign issuer files to pass on what it has published elsewhere.1^,2^,3^,4^,5^,6^,7^,8^,9^,10

For the notes due 2031, the conversion rate rose from 9.8915 to 9.9823 ADSs per US$1,000 of principal, and the maximum conversion rate, which takes into account adjustments for certain corporate events, moved from 12.8589 to 12.9770. Counting the notes outstanding on the day of the adjustment, the maximum number of ordinary shares, including those issued as ADSs, that Alibaba may issue on full conversion at the maximum conversion rate rose from 514,360,000 to 519,056,000.3^,6^,1^,11

The notes due 2032 are zero coupon convertible senior notes, which pay no periodic interest. Their conversion rate rose from 5.1773 to 5.2248 ADSs per US$1,000 of principal, and their maximum conversion rate from 6.7953 to 6.8577. Under the adjusted initial conversion rate, the number of ordinary shares that may be issued on full conversion rose from 131,213,488 to 132,417,328.4^,12^,7^,2^,13

Alibaba said it would apply to the Hong Kong Stock Exchange for the listing of, and permission to deal in, the additional ordinary shares issuable on conversion, and that the terms of both series were otherwise unchanged.14^,15^,16^,17