Forgame Holdings Limited (Forgame) has taken delivery of 6,238 American depositary shares (ADS) of Alibaba Group Holding Limited after the underlying share price of a previously purchased equity-linked fixed coupon note (FCN) fell below its strike price on 5 October 2026. The settlement cost approximately US$0.75 million (HK$5.85 million), translating into an average acquisition price of US$120.22 (HK$937.70) per ADS, exclusive of transaction costs.

The FCN, arranged with CSI Financial Products Limited and guaranteed by CITIC Securities International Company Limited, was traded on 26 September 2025 and issued on 3 October 2025. Key terms include: • Principal amount: US$0.75 million • Linked equities: Alibaba (BABA), Royal Caribbean Cruises (RCL), Spotify Technology (SPOT) • Strike prices: Alibaba US$120.218; RCL US$227.836; SPOT US$499.730 • Tenor: 12 months; final valuation date: 5 October 2026; maturity: 7 October 2026 • Coupon rate: 16.76% The transaction was fully funded through internal cash resources.

Regulatory implications: The original FCN purchase was below the 5% threshold under Hong Kong’s Listing Rules and therefore non-disclosable at that time. The subsequent acquisition of Alibaba ADS pushes one of the applicable percentage ratios above 5% but below 25%, classifying the deal as a disclosable transaction requiring public announcement under Chapter 14.

Strategic rationale: Forgame views Alibaba—an e-commerce and cloud computing leader with extensive domestic and international operations—as a long-term investment opportunity. Management highlighted the FCN’s 16.76% coupon as offering superior income yield versus traditional bank deposits, while also providing potential capital appreciation through equity settlement.

Alibaba snapshot (FY ended 31 March 2026): • Revenue: RMB 1.02 trillion • Gross profit: RMB 407.53 billion • Net income: RMB 102.13 billion • Total assets: RMB 1.91 trillion

Company profile: Forgame, incorporated in the Cayman Islands and listed in Hong Kong, develops and publishes web and mobile games and trades electronic devices and semiconductors in mainland China.

The FCN issuer and its ultimate beneficial owners are independent third parties to Forgame. The group confirmed no other outstanding equity-linked notes tied to Alibaba at the announcement date.