Just after the Hong Kong Stock Exchange revealed that Tencent President Liu chiping on Friday (3rd) to reduce its holdings of 500,000 shares of Tencent, cashing out HK$192million. Liu joined Tencent in 2005 and was promoted to president of Tencent in 2006, earning 300 million yuan a year, and is known as the “Working Emperor”. It has been reduced almost once a year and has cashed out more than HK$2 billion in the last five years.
Some people say that Liu is Tencent’s “number two”, he let Tencent no longer limited to QQ, but also become a game, news portal, more than 63 listed companies and other big empire. He is also the one who helped bring Foxmail and its founder, Zhang Xiaolong, to Tencent. Arguably, he is the one who helped Tencent become a “everywhere” company.
Liu chiping cashs out Tencent for HK$192 million
Over HK$2 billion in 5 years
According to the HKEx disclosure, Tencent Holdings President Liu chiping on Friday (January 3) reduced his holding of 500,000 shares of Tencent at an average price of HK$384.1789 per share, cashing in HK$192 million (about 170 million yuan).
After the sell-off, Mr Liu still holds 52,190.4 million shares, or about 0.55 per cent of the issued share capital.
This is not the first time Mr Liu has cashed out. In fact, as executives and shareholders, Mr. Liu cashes out some of his stock or exercises options almost every year.
Before the 500,000 shares he cashed out, he had cashed out more than HK$1.8bn in the past four years.
Of this amount, HK$666 million was set in cash in 2015, HK$559 million in 2016 and HK$180 million was realized in 2017. On March 27, 2018, Mr. Liu reduced his holding of 1 million Tencent shares, valued at about HK$434 million, or 348 million Yuan, at an average price of HK$434.3624 per share.
Combined with hk$192 million, Mr Lau has cashed out over HK$2 billion in the past five years.
“Working Emperor” Liu chiping
Annual salary of 300 million, $17 billion
Liu chiping, Tencent’s executive director and president, is known as the “Working Emperor” with an annual salary of 313 million yuan and a daily salary of more than 1 million yuan.
Tencent founder Ma Huateng’s 2018 salary is just 38.84 million yuan.
In the 2019 Hurun Rich List, Liu was ranked 214th with a fortune of 17 billion.
Let Tencent not just limit itself to QQ
Build a gaming empire
According to the data, Liu, born in Beijing in 1973, received a master’s degree in business administration from Northwestern University Kellogg School of Management in 1995, a bachelor’s degree in electrical engineering from the University of Michigan in 1998, a master’s degree in electrical engineering from Stanford University, and a management consulting job at McKinsey after graduation. He later served as Executive Director of Goldman Sachs’ Asian Investment Banking Division and Chief Operating Officer of the Telecom, Media and Technology Industry Group.
It is reported that Liu was in charge of Tencent’s listing at Goldman Sachs. Mr. Liu’s talent has been greatly appreciated by Mr. Ma, and Mr. Liu has also felt the Chinese company’s excellence in the Tencent IPO.
In 2005, Tencent faced its biggest crisis since its inception. Tencent’s strategic path to become a “virtual telecom operator” was blocked, while the “wireless value-added service” that was then thought to be the source was being cleaned up by China Mobile, with a narrow profit base and a great possibility of being cut off. During Tencent’s most difficult time, Ma invited Liu to join Tencent as the company’s chief strategic investment officer, responsible for corporate strategy, investment, mergers and acquisitions and investor relations.
In Wu Xiaobo’s “Tencent Biography”, Liu said that Tencent’s revenue transition at the time relied on the “mobile dream network” business, “this is a kind of business model under the stoush, will make investors feel that Tencent lacks plasticity, lack of information and imagination for the future.” “That speech suddenly gave Ma Huateng a pleasure to find the voice.
Then, as we later saw, Tencent made its first organizational restructuring, moving from a single to multiple, into online games and news portals, and taking a horizontal career structure. And ultimately, Tencent is beginning to go out, not only from the local enterprises gradually to internationalization, but also through investment, acquisition to expand their own.
This also makes Tencent in the game, portal, Internet value-added services and other areas of rapid development, the achievement of Tencent after the rapid development.
63 listed companies
“Receiving” Zhang Xiaolong into Tencent
In Tencent, Liu said bluntly: “I manage three pieces of no one’s work, one is planning, the other is mergers and acquisitions, three is investor relations.” ”
It is reported that before Liu joined, Tencent rarely used external investment means, are through investment in internal research and development and other departments to do, basically what is popular to do, this follow-up business model, but also let Tencent in the venture capital circle fell “copycat”, “shanzhai king” of the notoriety.
Under Liu’s leadership, Tencent began to invest in mergers and acquisitions, rapidly expanding its business and opening up new sources of revenue.
During his tenure at Tencent, Liu directed investment projects such as public review network, Leju.com, map service provider Four Dimensions New, and participated in the acquisition of 58 Tongcheng 19.9% of the shares for $736 million and other major events. He also helped Tencent efficiently and accurately complete the acquisition of the email company Foxmail, while Foxmail and its founder, Xiaolong Zhang, made the future of WeChat.
In February 2006, he became President of Tencent, helping Ma Huateng, Chairman and Ceo of the Board of Directors, to take charge of the day-to-day management and operation of the company. In March 2007, he was appointed Executive Director.
On December 4, 2017, Liu was named Bloomberg Businessweek’s 2017 Global 50 Most Influential People. As the chief adviser to Ma Huateng, the ever-low-key Tencent CEO, Liu pushed Tencent to expand beyond its core product, WeChat. Now, WeChat is everywhere in China. Tencent’s ambitions are diversifying, and Mr. Liu’s signature investments are helping Tencent achieve those goals. A range of his investments have investors, competitors and users looking at Tencent, including a $1.8 billion stake in Tesla, a partnership with Nintendo to launch the popular Mobile game “King’s Glory” in Japan and the United States, the acquisition of an undisclosed Share of Meituan Dianping, and an acquisition of about 12% Snap shares.
“Liu is a great business analyst, and he knows what war to fight, ” said Zhang Lei, founder of Gaoyu Capital and an early investor in Tencent. ”
In 2019, Liu shared: Tencent has invested in about 700 companies over the past decade, 63 are listed, 16 are listed, 122 have a market capitalization or more than $1 billion, and the total value of companies with more than 5 percent stake is more than $500 billion.
He also responded to the question that “Tencent has no dream”, “Some people say that Tencent has no dream of investing.” I think it’s not a dream, it’s delusional if we want to control everything and do everything. Instead, when we can choose what can be done and what not to do, we can really make our dreams, and let all the entrepreneurs here dream come true. ”
He believes that through investment, Tencent and partners form an organic complement. The investment allows Tencent to focus more on its platform and business, and to provide better services to partners and investee companies when the platform and business are doing better.
In 2005, since Liu joined Tencent, Tencent’s share price performance is as shown:
Tencent shares rebound above 15% in nearly a month
Since 2018, Tencent is facing its third crisis since its start-up, and Tencent’s share price has suffered several shocks. Then, on September 30, 2018, Tencent made its third major organizational restructuring since its inception. Put forward “rooted in the consumer Internet, embrace the industrial Internet”, the new establishment of PCG (platform and content business group) and mainly in the field of industrial Internet exploration CSIG (cloud and smart industry business group).
On November 11, 2019, on the occasion of Tencent’s 21st anniversary, Ma Huateng, Liu chiping and all the members of the General Office sent a full-time e-mail to more than 40,000 employees, officially announcing Tencent’s new mission vision as “user-oriented, technology to the good” and updating the company’s values as “integrity, progress, collaboration and creativity”.
Tencent’s third reform is still in progress. But a closer look at Tencent’s share price has largely stabilised and rebounded. The recent stock price performance is even more outstanding.
Tencent’s share price has rebounded since December 5, 2019, and has risen more than 16%, according to the data.
As can be seen, Liu chiping cash ingress is also very time-watching.