Jack Ma has not sold a single share, "said Jiang Fang, a partner and chief talent officer of Alibaba Group, in response to recent rumors that founder Jack Ma has sold a huge amount of Alibaba (NYSE: BABA; HKEX: 9988) stocks on the Alibaba intranet today.
As long as we have an open mindset and innovative thinking, we have the opportunity to create another unique Alibaba. "Alibaba Group Chairman Cai Chongxin also supported Jiang Fang in refuting the rumor.
Alibaba confirmed to the China Business Daily reporter that recently, the US Stock Exchange released a long-term equity plan application disclosed by the Ma Yun Family Trust, which began on November 21. The application is set to have the option to sell Alibaba shares under certain pre conditions. This information was understood as Jack Ma about to sell off Alibaba's stock, and even led to numerous malicious speculations and associations.
In order to invest in agricultural technology and public welfare projects both domestically and internationally, Teacher Ma's office signed a reduction contract with a stock broker earlier this year in accordance with SEC 10b5-1 regulations. According to regulations, this conditional future reduction plan will be announced in mid November. The selling price set in August was much higher than the current stock price, so Teacher Ma did not sell a single share Jiang Fang posted a detailed explanation of this matter on the intranet.
Looking back at the timeline of the development of the matter, the fermentation and misinterpretation of the matter may lie in the news "rushing".
On November 16th, Alibaba released its financial report for the second quarter of the 2024 fiscal year. Prior to the release of the financial report, the news about Jack Ma's plan to reduce his holdings in Alibaba stocks attracted widespread attention from the outside world. Public data shows that on July 2, 2020, Jack Ma's shareholding had dropped to 4.8%, below 5%. In recent years, Alibaba has stopped disclosing Jack Ma's shareholding in its financial reports.
According to Form 144 disclosed on the official website of the Securities and Exchange Commission (SEC), Jack Ma's family trust JC Properties Limited (a British Virgin Islands company) and JSP Investment Limited (a British Virgin Islands company) plan to reduce their holdings of 5 million Alibaba founder shares on November 21, respectively.
After the financial report was released, on November 17th, Alibaba's Hong Kong stock price fell by more than 10%. The next day, Jack Ma's office lawyer announced to the public that the disclosed sale plan is a long-term plan, and there has been no actual reduction of holdings in the plan. Jack Ma is firmly optimistic about Alibaba.
Why did such a misunderstanding occur? "Jiang Fang stated in an internal post," November 16th happened to be the set disclosure time, but the stock broker did not know that this day happened to be the day when the company released its financial report. This coincidence is the first reason for the external misunderstanding
The selling price set in August was much higher than the current stock price, so Teacher Ma did not sell any shares! This is the second misconception from the outside world
The external speculation that he sold a large amount of stocks shows a lack of confidence in Alibaba's business, completely disregarding the fact that this is a long-term plan and that he believes Alibaba's business will further increase in value and set a higher selling price. Jiang Fang also conveyed to all Alibaba people through the intranet that Jack Ma is firmly optimistic about Alibaba, "Alibaba's stock is currently significantly lower than Alibaba's actual value, and he will not sell it.
I have been in the company for almost 25 years, and Alibaba has been facing various doubts and challenges from the beginning to the present. However, we continue to persist and have overcome one difficulty after another in these doubts and challenges. Because Alibaba's genes are to believe that the future will be better, "Cai Chongxin said in a post, Today, the rapid iteration of global technology and business models is a challenge for everyone, but it is also an excellent opportunity. As long as we have an open mindset and innovative thinking, we have the opportunity to create another unique Alibaba
Attached is Jiang Fang's Alibaba intranet post:
Dear partners
There are two things about Alibaba that have been widely circulated in the past few days, but there are serious errors. I have synchronized the true information I know with everyone, and I welcome everyone to share the information I have provided with colleagues and friends who care about Alibaba's development:
Since the quarterly report released by the group last Thursday, the announcement of Teacher Ma's plan to reduce his holdings in Alibaba's stock and media reports have led students to mistakenly believe that Teacher Ma is not optimistic about the company.
Here, I would like to clarify the fact that Teacher Ma's office needs funds to invest in agricultural technology and public welfare projects both domestically and internationally. Earlier this year, it signed a reduction contract with a stock broker in accordance with SEC 10b5-1 regulations. According to regulations, this conditional future reduction plan will be announced to the public in mid November.
November 16th happened to be the set disclosure time, but the stock broker was not aware that it happened to be the day the company released its financial report. This coincidence was the first cause of misunderstandings among the outside world.
The selling price set in August was much higher than the current stock price, so Teacher Ma did not sell a single share! This is the second misconception from the outside world.
Mr. Ma's office has issued a statement to the public that he will firmly hold Alibaba. This is not a clich é, it is a fact.
Alibaba's stock is currently significantly lower than Alibaba's actual value, and he will not sell it. The external speculation that he sold stocks shows a lack of confidence in Alibaba's business, completely disregarding the fact that this is a long-term plan and the high selling price he set for believing that Alibaba's business will further appreciate.
2. Rumors about Alibaba's plan to lay off 25000 employees: In the past few days, this rumor has spread with a nose and an eye, and it has also created a storyline about how we go to the human resources and social security departments to apply for approval layer by layer. The group has reported to the police to hold the rumormongers accountable. I hope to see the rumormonger take responsibility soon.
I don't think this is my first time debunking rumors on the intranet, and it probably won't be the last time. Since the company started its business today and went through ups and downs together, we have never lacked rumors. The important thing is that we always use faith to defeat rumors. We have gone from negation, questioning, and even rumors to today. Believing, believing in the future, believing in ourselves, is the power that we face all storms. Facing the future, facing the wave of technology, and facing the endless innovation, we still have many important things to do. Let's work together!