At the time when Xiaomi’s share price hit a new high, Xiaomi’s co-founder and vice-chairman Lin Bin once again reduced its holdings.
According to the reports, Lin Bin will sell 350 million shares of the company this time, cashing out a total amount of about 1 billion US dollars. The sale of shares accounted for approximately 2% of the company’s issued Class B shares and 1.5% of the total issued share capital.
This is the second time Lin Bin has sold Xiaomi’s equity after it went public.
In August 2019, the Hong Kong Stock Exchange revealed that Lin Bin sold Xiaomi shares for three consecutive days. On August 21, he sold 26.7 million shares of the company for HK$9.0731; on August 22, he sold 5.5596 million shares, and on August 23. 9.0476 million shares were sold each day, and a total of 41,307,200 shares were sold in three days.
If calculated at 9 Hong Kong dollars per share, Lin Bin cashed out nearly 400 million Hong Kong dollars last time.
After Lin Bin cashed out last time, it caused an uproar in the industry and put pressure on Xiaomi’s stock price. At that time, Lin Bin voluntarily promised not to sell any company shares he held within 365 days.
As of December 31, 2019, Lin Bin held a total of 2,749,920,210 shares of Xiaomi, holding 11.41%.
This time, Lin Bin cashed out again after a year, and the amount of cash out was obviously much larger this time. This has led to speculation that Lin Bin may take a back seat within Xiaomi.
In fact, Lin Bin has indeed been retiring within Xiaomi in the past year or so.
At the end of October 2019, Xiaomi issued an announcement announcing that the board of directors would like to announce that from October 25, 2019: Lin Bin has been appointed as the vice-chairman and will continue to serve as the company’s executive director and president.
Lin Bin mainly assists Chairman Lei Jun in major strategic decisions of the company. Lin Bin continues to serve as executive director and president of the company, responsible for managing the company’s mobile phone research and development department, assisting the company’s CEO to manage the company’s business operations, and promoting the company’s sustainable development.
However, Lin Bin was up and down in Xiaomi on many occasions. After that, Xiaomi released an internal email and the management decided to promote Wang Xiang as the president of the group to assist him in managing the company’s operations. In other words, Wang Xiang replaced Lin Bin as president of Xiaomi.
At the end of July 2020, Xiaomi appointed Zeng Xuezhong as vice president of the group and president of the mobile phone department, responsible for the research and development and production of mobile phone products, and reported to the group’s chairman and CEO Lei Jun.
During the same period, Lin Bin stepped down as president of the mobile phone department and served as the vice-chairman of the newly established group strategy committee.
This means that within one year Lin Bin’s real power has actually been gradually stripped. Currently, Xiaomi’s internal celebrities are Wang Xiang and Lu Weibing. In 2020, Xiaomi will also introduce three group executives, Chang Cheng, Yang Zhe, and Zeng Xuezhong. On the mobile phone battlefield, Xiaomi has formed a luxurious “dream team.”
At the same time, Peng Zhibin, the former vice president of Country Garden, joined Xiaomi as the vice president and chief talent officer (CHO) of Xiaomi Group. Lin Shiwei, managing director of Credit Suisse Asia Pacific Investment Banking and Capital Markets and head of technology, media, and telecommunications business, will serve as Xiaomi’s CFO.
In August 2020, Xiaomi CEO Lei Jun announced that Xiaomi has embarked on a journey of “re-enterprise”. Lei Jun also said that four group executives, including Wang Xiang, Zhou Shouzi, Zhang Feng, and Lu Weibing, became Xiaomi partners, and they are the “co-founders” of Xiaomi in the next decade.
“At the same time, we have also launched the New Ten Year Entrepreneur Plan, and are selecting hundreds of outstanding talents, striving with an entrepreneurial mentality and commitment! On the journey of the future, believe in yourself, and move forward.” On the occasion of Xiaomi’s 10th anniversary, Lin Bin’s move to cash out is also understandable. After struggling with Lei Jun for so many years, he has won countless fortunes and is considered a winner in life.
Digital marketing enthusiast and industry professional in Digital technologies, Technology News, Mobile phones, software, gadgets with vast experience in the tech industry, I have a keen interest in technology, News breaking.