Alibaba announced on August 21 through a Hong Kong Stock Exchange filing that it plans to spin off Zebra Network Technology Co., Ltd for an independent listing on the Main Board of The Stock Exchange of Hong Kong Limited.

According to the announcement, Zebra is a limited liability company established under Chinese law on November 22, 2015, and was converted to a joint stock company on March 3, 2025. Zebra primarily engages in the development of intelligent cockpit solutions and provides three types of solutions including system-level OS solutions, AI full-stack end-to-end solutions, and in-vehicle platform services.

Alibaba's Board of Directors announced that Zebra is seeking an independent listing of its shares on the Hong Kong Stock Exchange Main Board. Zebra was previously a subsidiary of Alibaba but has not been included in the group's consolidation scope since December 27, 2024. As Zebra was deconsolidated during the company's most recent complete financial year, according to paragraph 2 of Application Guidance Note 15, the company has submitted a spin-off proposal to the Hong Kong Stock Exchange, and the exchange has confirmed that the company may proceed with the proposed spin-off.

As of the announcement date, Alibaba holds approximately 44.72% of Zebra's shares, with Zebra being accounted for as an equity method investee of the company. The proposed spin-off will be conducted through a global offering of Zebra shares (including a Hong Kong public offering and international offering). Following certain proposed adjustments to Zebra's shareholding structure and completion of the proposed spin-off, the company will continue to hold over 30% of Zebra's shares, and Zebra will remain an equity method investee of the company.

Alibaba stated that details regarding the proposed spin-off (including the scale and structure of the global offering, and the reduction in the company's shareholding percentage in Zebra) have not yet been finalized.

Alibaba indicated that based on the following reasons, the Board of Directors believes the proposed spin-off will benefit both the company and Zebra, including:

(i) The proposed spin-off can better reflect the inherent value of the Zebra Group and improve its operational and financial transparency, enabling investors to separately evaluate and assess the performance and potential of the Zebra Group and Alibaba's remaining group;

(ii) Zebra's business differs from the relatively more diversified business model of Alibaba's remaining group, and its unique automotive system solutions will attract investor groups focused on Zebra Group's business areas; and

(iii) Zebra's listing on the Hong Kong Stock Exchange will: (a) enhance Zebra's independent image among customers, suppliers, and potential strategic partners, enabling Zebra to better negotiate and secure more business opportunities. The company will also share in the benefits brought by Zebra's growth through its shareholding in Zebra; and (b) enable Zebra to directly and independently access equity and debt capital markets when needed in the future. The proposed spin-off provides rating agencies and financial institutions wishing to conduct credit analysis of its business conditions and provide loans accordingly with a clear view of Zebra Group's credit profile. Therefore, the proposed spin-off will enhance Zebra Group's ability to obtain bank credit financing and broaden its external financing channels. The proposed spin-off will also provide investors and the public with a clearer understanding of the business functions of Alibaba's remaining group and Zebra Group.

Alibaba cautioned that the proposed spin-off is subject to (among other things) obtaining approval from the Hong Kong Stock Exchange Listing Committee for the listing and trading of Zebra shares, completion of filing with the China Securities Regulatory Commission regarding Zebra's listing and offering, and final decision by Zebra's Board of Directors (if applicable). Shareholders and prospective investors should note that there is currently no guarantee that the proposed spin-off will materialize or when it will materialize. Therefore, shareholders and prospective investors are advised to exercise caution when trading or investing in the company's securities.

Alibaba also stated that it will issue further announcements regarding the proposed spin-off at appropriate times.

According to Wind data, as of the close of Hong Kong trading on August 20, Alibaba fell 0.68% to HK$117.50; as of the close of US trading in the early hours of August 21, Alibaba fell 0.43% to US$119.48.