Lei Jun's donation pledge two and a half years ago officially landed.

XIAOMI Group announced that Chairman and CEO Lei Jun recently donated 308 million Class B shares of the company to XIAOMI Foundation and Lei Jun Foundation for public welfare purposes, totaling about 616 million shares.

Based on XIAOMI's current share price of HK $28.25 per share, the corresponding market capitalization is 17.402 billion Hong Kong dollars (about 14.514 billion yuan). Lei Jun holds 31.41 per cent of XIAOMI's shares, with a corresponding share value of about HK $222.5 billion, with the donation accounting for 7.82 per cent of the value of his stake.

So far, according to the Forbes real-time rich list, Lei Jun ranks 72nd in the world, with a personal wealth of US $24.5 billion (about 158.7 billion yuan). The donation accounts for 9.15% of his total wealth.

Pinduoduo 41-year-old Huang Zheng became the first charity in China with a donation of 12 billion yuan on May 11, when the Hurun Institute released the Hurun Charity list 2021. Lei Jun, on the other hand, broke the record and will become a strong competitor for the best in China in 2022.

According to the Hurun Charity list, the cumulative personal donation of Cao Dewang, founder and chairman of Fuyao Glass Industry Group Group, has reached 11 billion yuan since the first donation in 1983.

14.5 billion yuan! Donate to two charities

On the occasion of XIAOMI IPO in 2018, Lei Jun received about 640 million XIAOMI Award shares awarded by the board of directors and shareholders' meeting. "donated to charitable organizations for charitable purposes" is not subject to the promised lock-up period.

Based on IPO's initial share price, the award is worth more than HK $9.9 billion.

In January 2019, half a year after the listing of Hong Kong stocks, the market capitalization has halved from its peak. Perhaps to boost share prices, XIAOMI issued a voluntary announcement saying that controlling shareholder Lei Jun and related entities promised to extend the lock-up period and not to reduce their holdings in XIAOMI in the coming year, as a sign of "confidence in the long-term value of the company".

At the same time, Lei Jun can "give to public charity organizations for charitable purposes" about 640 million shares of XIAOMI Award shares, which are not subject to the promised lock-up period.

Based on the closing price on January 15, 2019, the award is worth only HK $6.4 billion.

Two and a half years later, the matter has ushered in the latest development.

XIAOMI issued the above-mentioned announcement on July 16, announcing the implementation of the donation on the ground.

So who did Lei Jun donate to, what did he donate, and how will the money be used?

1. The recipients were established in 2019 and 2020 respectively.

Different from the XIAOMI Public Welfare Foundation, which carries out public welfare in the mainland, this is a non-public offering foundation approved by the Beijing Municipal Civil Affairs Bureau, referred to as XIAOMI Foundation. The foundation was established in February 2019 to promote the development of philanthropy by subsidizing public welfare activities to help the needy.

The two companies mentioned in the announcement are XIAOMI Foundation Co., Ltd. And Lei Jun Foundation Co., Ltd. Both are registered in Hong Kong, the former was established on November 11, 2019, and the latter was established on September 24, 2020.

According to the notice of the Inland Revenue Department of the Hong Kong Special Administrative region, the above two companies are charitable organizations and charitable trusts exempted from tax under section 88 of the Inland Revenue Ordinance.

two。 The donated Class B shares will not significantly affect Lei Jun's real control over XIAOMI.

Before XIAOMI went public, Lei Jun owned 20.51% of Class A shares and 10.9% of Class B shares. For the general matters of the company's operation, the voting right of each Class A share is 10 times that of the Class B share, which is significantly lower.

According to the announcement, Lei Jun donated Class B stocks.

Lei Jun owns 57.9% of XIAOMI's voting rights, and even if a small amount of Class B shares are donated for charitable purposes, it will not significantly affect his control of XIAOMI Group.

3. Relevant public welfare plans, waiting to be implemented

Social welfare foundation is a non-profit social organization that manages donated funds. China's relevant policies stipulate that all kinds of social public welfare funds can be used for securities investment in order to maintain and increase their value.

The form of the foundation can enjoy tax breaks, but it needs to meet the needs of capital expenditure in philanthropy. According to regulations, charitable foundations must allocate at least 8% of the asset balance of the previous year to public welfare undertakings every year, and administrative expenses shall be deducted separately according to 10% of this amount, and the total annual net expenditure accounts for 8.8% of the asset balance of the previous year.

At present, XIAOMI Foundation and Lei Jun Foundation have not disclosed to the public the details of the use of funds and future plans for the use of funds, we can only wait and see.

XIAOMI responded in early 2019, "the public welfare and charity work related to this donation will be disclosed when the implementation is perfect." "

Return to the alma mater: set up scholarships, donate money to build buildings, and participate in the establishment of alumni funds

According to public data, Lei Jun was born in Xiantao, Hubei Province in 1969. In 1987, he graduated from the former Shenyang Middle School (now Xiantao Middle School in Hubei Province). In the same year, he was admitted to the computer Department of Wuhan University. After entering the university, Lei Jun, who was strict with himself, began to take many senior courses. In only two years, Lei Jun completed all the credits (Wuhan University was the first batch of universities in China to implement the credit system at that time, and according to the school requirements, as long as they completed certain credits, they could graduate), and even completed the graduation project of the university.

Lei Jun donated money to Wuhan University for the first time to set up a scholarship in 1997, when Lei Jun first earned 600000 yuan and donated it to his alma mater.

According to relevant reports, in 1998, Lei Jun was hired as an honorary professor by Wuhan University and set up a "take-off Scholarship" at Wuhan University. Later, on the basis of an eight-year "take-off" computer Scholarship of 140000 yuan, Lei Jun continued to set up a total of 360000 yuan in Wuhan University's "Lei Jun computer Scholarship" to reward excellent students in the School of computer Science.

In 2008, Lei Jun donated 2 million yuan to set up a "take-off Scholarship" at Wuhan University.

In 2013, on the occasion of the 120th anniversary of Wuhan University, Lei Jun donated another 10 million yuan to set up a "Lei Jun scholarship" at his alma mater.

Lei Jun, an alumnus of Wuhan University, donated 99.999999 million yuan to his alma mater to build a science and technology building at the Beijing headquarters of Jinshan Software Company in October 2016.

According to the official WeChat of Wuhan University, on the same day, Lei Jun and Li Xiaohong, president of Wuhan University, signed the donation agreement. Lei Jun donated money to build the science and technology building of Wuhan University, with a total construction area of 35000 square meters (including underground). It is mainly used to build a large-scale scientific instrument sharing platform of Wuhan University and to carry out cross-frontier scientific research.

Apart from Lei Jun, there were also Chen Dongsheng, chairman of Taikang Life Insurance, and alumni of Wuhan University, such as Mao Zhenhua, Hu Shuxiang and Yu Shan, according to the official WeChat account of Hubei Daily.

As for the amount on the donation certificate is 99999999 yuan, a difference of 1 yuan from 100 million yuan, Lei Jun explained that it is a little less than brother Chen Dongsheng, and hopes that more alumni will participate, not to keep up with the comparison.

According to the Wuhan Daily, in May 2017, Wuhan announced that it would set up a 2 billion yuan "Wuhan Alumni Zizhi Huihan Industry guidance Fund" funded by the city finance, in an effort to directly pry 10 billion yuan of alumni capital back to Han and indirectly boost industrial investment of 20 billion yuan.

In addition to Lei Jun, there are also big names including Yan Zhi, Chairman of Zall Holdings, Chen Dongsheng, Chairman of Taikang Life Insurance, Wang Chaoyong, President of Xinzhongli International Holdings Company, DouYu International Holdings Limited Zhang Ming, TV CEO, Huang Chengsong, founder of Curly, Zhou Yunjie, President of Haier Group, and Dong Mingzhu, Chairman of Gree Group, who became the first "outstanding alumni of Zizhi Huihan".

Not only to return to his alma mater. In July 2020, XIAOMI Public Welfare Foundation donated money to Peking University Education Foundation to set up Peking University XIAOMI Scholarship and Scholarship.

Subsequently, XIAOMI Public Welfare Foundation forwarded the relevant Weibo Corp and said that since 2020, "XIAOMI Scholarship" has been set up in a number of universities, with the first batch of 50 million yuan.

Lei Jun revealed in forwarding relevant Weibo Corp that XIAOMI public welfare fund has successively set up XIAOMI scholarships in a number of colleges and universities.

Helping the needy and giving charity is a fine tradition of the Chinese nation, and these Internet bigwigs are taking practical actions to practice this virtue.

In the future, there will certainly be more and more entrepreneurs who will feed their alma mater and give back to the society while gaining success.