On June 22, Lin Bin, co-founder, vice chairman and executive director of Xiaomi Group, further explained recent rumors about ‘reducing holdings for cashing out’ through his personal Weibo.
“Regarding the recent online discussions about my foundation reducing its holdings of Xiaomi stocks in the past few days, I would like to clarify with everyone. My foundation was established in 2019, and according to the laws at that time, all assets of the foundation can only be used for charitable purposes and donations related to education and research, not for personal enjoyment.
In 2020, I donated 120 million shares of Xiaomi stock to the foundation (of which 60 million shares were later donated to the Xiaomi Foundation), all of which can only be used for charitable purposes. For this reason, the initial commitment not to reduce holdings within five years does not include these stocks held by the foundation.
As for the amount reduced this time, apart from a portion donated to my alma mater Sun Yat-sen University, there will be more public welfare donations in the future. Everyone is welcome to supervise together.”
Earlier this month, domestic media reported that Lin Bin’s reduction of holdings for three consecutive trading days in June attracted investors’ attention. Disclosure information shows that Lin Bin reduced a total of 10 million shares, cashing out approximately HK$179 million. After the reduction, some investors accused Lin Bin of breaking promises and lacking credibility on platforms such as Xueqiu.
A spokesperson from Xiaomi Group stated today that the reduction of holdings for cashing out was done for charity, “specific details can be found in their donation to Sun Yat-sen University.” However, there is a discrepancy between the amount Lin Bin cashed out and the donation amount. In response to this, a spokesperson from Xiaomi Group mentioned that it was due to the difference between Hong Kong dollars and Chinese yuan.
SEE ALSO: The Road Test Spy Photos of Xiaomi’s First SUV Exposed
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