ADR Conversion (BABA to 9988.HK)

I have a few lots of US-BABA. Due to the recent sell-down, I decided to buy 9988.HK and now own quite a fair bit in my another portfolio (primarily focus on Chinese stocks).

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I came across the idea of converting US-BABA to 9988.HK (1: 8 lots) at a designated fee at IBKR platform (https://www.interactivebrokers.com/en/?f=%2Fen%...).

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For instance, let's say I now have 10 lots of US-BABA first bought at 200 USD and decided to convert to 80 lots of 9988.HK at current price at 115 HKD.

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Does this mean, I will be doing the conversion at a loss, or the price doesn't matter at all? Could anyone shed some light how does this work?