On November 22nd, according to a later report, in response to recent rumors that Jack Ma had sold a huge amount of Alibaba shares, Alibaba Group Partner and Chief Talent Officer Jiang Fang posted a response on the Alibaba intranet today, stating that "Jack Ma has not sold a single share" and that the timing of the stock broker's sale was coincidental.
Just before Alibaba released its latest quarterly financial report on November 16th, the Securities and Exchange Commission (SEC) website disclosed Form 144, which showed that Jack Ma's family trust JC Properties Limited (a British Virgin Islands company) and JSP Investment Limited (a British Virgin Islands company) planned to reduce their holdings of 5 million Alibaba founder shares on November 21st.
According to Alibaba's closing price of $87.07 on the New York Stock Exchange on Wednesday, the reduction involved a total amount of $870.7 million. Bank of America Securities served as the broker for the Ma Yun family trust reduction. Simultaneously with the financial report, there was also the "withdrawal" action of Alibaba Cloud Intelligent Group and Hema Fresh to split, which was interpreted by the outside world as Jack Ma not optimistic about Alibaba and insisted on cashing out.
A series of news directly led to a decline in Alibaba's stock price. On November 17th, Alibaba Hong Kong stocks closed down 9.96% on a single day; From the 16th to the 17th, Alibaba US stocks fell for two consecutive times, with a cumulative decline of 10.88%. Ma Yun's office lawyer quickly made a public response, stating that the disclosed sale plan is a long-term plan. Jack Ma is firmly optimistic about Alibaba, and the current stock price is far below its actual value. He will still firmly hold Alibaba's stock.
But this is not enough to dispel external speculation. Today, Jiang Fang posted a detailed explanation on the intranet regarding this matter:
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. The selling price set in August was much higher than the current stock price, so Teacher Ma did not sell a single share!
Previously, interface news also mentioned in reports that since 2016, some of the funds Jack Ma has cashed out every year have been invested in his charitable foundation, entering projects such as environmental protection, healthcare, educational development, and public welfare. In recent years, Alibaba has no longer disclosed Jack Ma's shareholding. The publicly available data that can be verified is that on July 2, 2020, Jack Ma's shareholding has decreased to 4.8%, below 5%, but still remains Alibaba's largest individual shareholder.
According to Jiang Fang, November 16th happened to be the set disclosure time, but the stock broker was not aware that this happened to be the day the company released its financial report. This coincidence was the first cause of misunderstandings among the outside world.
The external hype 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 appreciate 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.
In addition, Alibaba Group Chairman Cai Chongxin also left a message and replied in the post, "I have been at the company for almost 25 years. Alibaba has been facing various doubts and challenges from the beginning to now, but we continue to persist and 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 that today, global technology and business models are rapidly iterating, For everyone, it is a challenge, 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
Regarding the recent rumor that Alibaba will lay off 25000 employees, Jiang Fang mentioned in a post that "the rumor makers have been reported to the police and held accountable. We hope to see the rumor makers take responsibility soon
The following is Jiang Fang's post on the Alibaba intranet:
Dear friends,
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's probably not my last time either. Throughout the years of entrepreneurship and ups and downs with the company, we have never lacked rumors. The important thing is that every time we believe, we always 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!
The following is a message from Alibaba Group Chairman Cai Chongxin on this post:
I have been in the company for almost 25 years, and Alibaba has been facing various doubts and challenges from the beginning until now. However, we continue to persevere and overcome one difficulty after another in these doubts and challenges, because Alibaba's genes are to believe that the future will be better.
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 a unique Alibaba.
At this moment, it's none other than me. I have full confidence in Ali. Young Ali classmates, the future belongs to you! Because of trust, it is simple; Because I believe, I see!