Dear Alibaba Cloud customer,

Starting July 23, 2026, Alibaba Cloud will begin a phased rollout of the zero-prepayment / half-prepayment installment billing upgrade, affecting products such as CloudBox, Lingjun AI Computing, Platform for AI (PAI), and Smart Access Gateway. After the upgrade, installment bills will support coupon redemption, and billing rules will be adjusted accordingly. If your account is included in the rollout, the changes will take effect automatically.

Experience improvements in this upgrade

• Coupon support for installment bills: Coupons can be applied to each installment bill after it is generated.
• Faster bill generation: Installment bills are generated on the day they take effect, so the bill date matches the consumption date for easier reconciliation.
• More stable cost analysis: Installment bills are generated in real time for the current period, eliminating daily cost fluctuations caused by delayed billing.

Change 1: Coupon support for installment bills (new)

• Before: Coupons could only be applied at the time of purchase.
• After: Coupons can be applied both at purchase and after each installment bill is generated.

This is supported automatically—no action is required.

• Coupons applied at purchase are reflected in the prepaid bill, and offset the prepaid amount.
• Coupons applied after an installment bill is generated are reflected in the corresponding installment bill, and offset that installment amount.
• Coupons used at each stage are independent and do not affect each other.

Example: Suppose a CloudBox is originally priced at CNY 36,000 with a zero-upfront, 12-installment plan. A CNY 6,000 coupon is applied at purchase, making the actual payment CNY 30,000.

The amounts are calculated as follows:

• 1 prepaid bill: Reflects the coupon applied at purchase. Original price: CNY 6,000; coupon offset: CNY 6,000; amount due: CNY 0.
• 12 installment bills: Each installment = actual payment / number of installments = 30,000 / 12 = CNY 2,500.

After the upgrade, coupons can still be applied to each CNY 2,500 installment bill. For example, applying a CNY 500 coupon reduces the payment for that installment to CNY 2,000.

Change 2: Installment bill generation timing

• Before: The first installment bill was generated on the 1st of the following month; subsequent bills were generated on the 1st of each month.
• After: The first installment bill is generated on the day the billing cycle takes effect; subsequent bills are generated at 00:00 on the day after each cycle's effective date.

Note: The month each bill is attributed to remains unchanged—only the generation timing is adjusted. For example, an installment bill originally attributed to April will still be attributed to April after the upgrade; the only difference is that the generation date changes from April 1 to the effective date.

Please note that the change in bill generation timing may affect your available account balance. Plan your funds accordingly.

Example 1 (immediate activation): Order placed on March 15 with immediate activation, zero-upfront, 12-installment plan:

• Before: Installment 1 → April 1, Installment 2 → May 1, Installment 3 → June 1
• After: Installment 1 → March 15 (day of activation), Installment 2 → April 16 at 00:00, Installment 3 → May 16 at 00:00

Example 2 (scheduled activation): Order placed on March 15 with activation scheduled for March 20, zero-upfront, 12-installment plan:

• Before: Installment 1 → April 1, Installment 2 → May 1, Installment 3 → June 1
• After: Installment 1 → March 20 (day of activation), Installment 2 → April 21 at 00:00, Installment 3 → May 21 at 00:00

Monthly purchase scenario: Monthly renewals generate only one installment bill and follow the same rules above. Before the change, the bill was generated on the 1st of the following month; after the change, it is generated on the day of activation.

Existing orders: After the rollout takes effect, installment bills for existing orders that have not yet been generated will follow the new rules:

• Bills that should have been generated under the new rules but have not yet been issued will be generated in bulk on the day the rollout takes effect for your account.
• Subsequent installment bills will then be generated on a monthly basis according to the new effective-date-based schedule.

Example: An order placed on July 10 with immediate activation; the first installment was originally scheduled for August 1. If your account is included in the rollout on July 23, that installment bill will be generated early on July 23. Subsequent bills will be generated on the 11th of each month at 00:00.

Change 3: Cost breakdown rules

To view cost breakdowns, go to Cost Analysis.

(1) Number of line items: 1 per day → 2 per day

After the upgrade, two amortization line items are generated each day: one for prepaid amortization and one for installment bill amortization.

(2) Amortization rules: unified amortization → independent amortization

• Before: Total order price / number of days purchased, amortized uniformly, 1 line item per day.
• After: Prepaid and installment bill amounts are amortized independently, 2 line items per day.

Example: Original price CNY 36,500, 365 days, zero-upfront, 12 installments. A CNY 6,500 coupon is applied at purchase, making the prepaid amount due CNY 0. Each installment = 30,000 / 12 = CNY 2,500 (30 days per installment). A CNY 500 coupon is then applied to Installment 1, making the actual payment CNY 2,000.

Before:

Cost including coupons: 36,500 / 365 = CNY 100 per day, 1 line item per day

Cost excluding coupons: 30,000 / 365 = CNY 82.191781 per day, 1 line item per day

After (Installment 1: 30 days):

Cost including coupons, 2 line items per day:

Prepaid amortization: 6,500 / 365 = CNY 17.808219 per day

Installment bill amortization: 2,500 / 30 = CNY 83.333333 per day

Total: CNY 101.141552 per day (unchanged)

Cost excluding coupons, 2 line items per day:

Prepaid amortization: 0 / 365 = CNY 0 per day (prepaid amount due is CNY 0)

Installment bill amortization: 2,000 / 30 = CNY 66.666667 per day (actual payment of CNY 2,000 after applying a CNY 500 coupon)

Total: CNY 66.666667 per day

Important notes

• Phased rollout: This upgrade begins on July 23, 2026, and coverage will expand gradually.
• Impact on existing orders: After the rollout takes effect, installment bills for existing orders that have not yet been generated will follow the new rules. Bill generation timing may be moved earlier—please ensure timely payment.
• Coupons at purchase: Coupons can still be applied at the time of purchase as usual. Coupon offsets are reflected in the prepaid bill.