Alibaba : INSIDE INFORMATION ADMINISTRATIVE PENALTY DECISION OF ANTI-MONOPOLY INVESTIGATION

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

We have one class of shares ("Shares"), and each holder of our shares is entitled to one vote per share. As the Alibaba Partnership's director nomination rights are categorized as a weighted voting rights structure (the "WVR structure") under the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange ("Hong Kong Listing Rules"), we are deemed as a company with a WVR structure. Shareholders and prospective investors should be aware of the potential risks of investing in a company with a WVR structure. Our American depositary shares ("ADS"), each representing eight of our shares, are listed on the New York Stock Exchange in the United States under the symbol BABA.

Alibaba Group Holding Limited

阿 里 巴 巴 集 團 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 9988)

INSIDE INFORMATION

ADMINISTRATIVE PENALTY DECISION OF

ANTI-MONOPOLY INVESTIGATION

This announcement is made by Alibaba Group Holding Limited ("Alibaba Group" or the "Company") pursuant to Rule 13.09(2)(a) of the Hong Kong Listing Rules and the Inside Information Provisions (as defined under the Hong Kong Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

On December 24, 2020, Alibaba Group issued an announcement regarding its receipt of a notice of investigation (the "Anti-MonopolyInvestigation") from the State Administration for Market Regulation of the People's Republic of China (the "SAMR"). This announcement provides updated information.

On April 10, 2021, the SAMR issued an Administrative Penalty Decision (the "Decision") of the Anti-Monopoly Investigation into Alibaba Group.

In the Decision, the SAMR found that Alibaba Group had violated Article 17(4) of the Anti-Monopoly Law of the People's Republic of China (the "Anti-MonopolyLaw"). Article 17(4) of the Anti-Monopoly Law states that a business operator that has a dominant market position

is prohibited from restricting business counterparties through exclusive arrangements without justifiable cause.

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Pursuant to Articles 47 and 49 of the Anti-Monopoly Law, the SAMR ordered Alibaba Group to cease violating acts and imposed on Alibaba Group a fine of RMB18.228 billion (approximately US$2.8 billion), or 4% of Alibaba Group's revenue of RMB455.712 billion (approximately US$69.6 billion) generated in the calendar year of 2019 in China. The SAMR also issued an administrative guidance, instructing Alibaba Group to implement a comprehensive program of rectification, through strictly fulfilling its responsibility as a platform operator, strengthening its internal controls and compliance, upholding fair competition, and protecting the lawful rights and interests of the platform's merchants and consumers. The administrative guidance requires Alibaba Group to submit a self-assessment and compliance report to the SAMR for three consecutive years.

We accept the penalty with sincerity and will ensure our compliance with determination. To serve our responsibility to society, we will operate in accordance with the law with utmost diligence, continue to strengthen our compliance systems and build on growth through innovation.

Shareholders and potential investors should exercise caution when they deal or contemplate dealing in the Shares, ADS or other securities of the Company.

By order of the Board

Alibaba Group Holding Limited

Kevin Jinwei ZHANG

Secretary

Hong Kong, April 11, 2021

As at the date of this announcement, our board of directors is comprised of Mr. Daniel Yong ZHANG as the chairman, Mr. Joseph C. TSAI, Ms. Maggie Wei WU, Mr. J. Michael EVANS, Mr. Eric Xiandong JING and Mr. Kabir MISRA as directors, and Mr. Chee Hwa TUNG, Mr. Walter Teh Ming KWAUK, Mr. Jerry YANG, Mr. E. Börje EKHOLM and Ms. Wan Ling MARTELLO as independent directors.

Note: In this announcement, all translations of RMB into US$ were made at RMB6.5518 to US$1.00, the exchange rate on March 31, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board.

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