IT News on November 10th: Alibaba announced on the Hong Kong Stock Exchange that the Hong Kong Stock Exchange has confirmed that the company may proceed with the proposed split. On September 11, 2026, Pingtou Ge submitted a listing application form (the A1 form) to the Hong Kong Stock Exchange in a confidential manner, in order to apply for the approval of Pingtou Ge's H-shares to be listed and traded on the main board of the Hong Kong Stock Exchange.
Alibaba announced that it has submitted a proposal to the Hong Kong Stock Exchange regarding the proposed separate listing of its wholly-owned subsidiary, Pingtouge (Shanghai) Technology Co., Ltd., in accordance with Item 15 of the listing rules application guidelines.
It was learned from the announcement that Alibaba believes that the proposed split is beneficial to the company and Brother Pingtou commercially, and is in line with the overall interests of the shareholders.
It is recommended to split up the current plan to issue Pingtouge's H shares globally. As of the date of this announcement, Pingtouge is a wholly-owned subsidiary of Alibaba and is also a leading provider of full-stack data center chips in China. These chips can achieve system-level computing power solutions. It is expected that after the split is completed, Pingtouge will continue to remain a subsidiary of Alibaba.
It is recommended that a split be conducted to enable investors to more properly evaluate the value of Alibaba's retained group businesses; this will better reflect the value of Pingtouge Group itself. Investors will be able to distinctly and independently assess the performance and potential of Pingtouge from that of the retained group. Pingtouge's business can attract investors seeking to specialize in investing in its sector, while the retained group will continue to operate a relatively more diversified business model. It is expected that the value of Pingtouge Group will be enhanced through this proposed split, which in turn will benefit both Alibaba and its shareholders as a whole.
In terms of the reasons for benefiting, Alibaba mentioned that listing on the Hong Kong Stock Exchange will enhance Pingtou Ge's independent image among its customers, suppliers, and potential strategic partners, thus putting it in a more advantageous position when negotiating and attracting more business; it will also enable Pingtou Ge to directly and independently access the equity and debt capital markets when needed in the future, and further strengthen its ability to obtain bank credit financing, allowing for more effective allocation of Alibaba Group's financial resources.
