On October 8, Alibabas share price in the US stock exchange broke through the $300 mark, and Gou directly cashed out half of Alibaba.
Foxconn ventures, a subsidiary of Foxconn ventures, sold 630000 shares of Alibabas ads, according to a filing to the exchange on October 9. The transaction date is October 8 and the total transaction amount is US $186.38 million (about HK $1.45 billion).
According to the announcement, the transaction has realized an interest of US $120 million based on the cost of acquisition. This means that Gou bought 630000 shares of Alibaba ads at that time, which cost nearly $65 million, and the cost of each ads was about $103.
250 million invested in Ali 13 years ago
According to previous media reports, when Ma Yun founded Alibaba, he once looked for investors everywhere due to lack of funds. At that time, many people suggested that Gou Taiming invest in Ma Yun, but he was suspicious and thought that Ma Yun was a little boastful and missed the best opportunity to invest in Alibaba.
After a heated debate, neither Ma Yun nor Guo Taiming convinced anyone, but they became good friends with each other.
In the same year, Gou invested in Alibaba. In that year, Hon Hai group, as a cornerstone investor, subscribed for 2.9% of Alibabas shares, which had just been listed in Hong Kong, for HK $271.6 million, at a price of HK $13.5 per share.
In 2012, after Ali delisted from Hong Kong, Gou Taiming never gave up, and his Alibaba shares landed in the United States in 2014. As we all know, Alibabas early investors have made a lot of money since then. Among them, the most famous one is sun Zhengyi of Softbank. The investment of 20 million US dollars has become more than 50 billion US dollars of stock, and the investment return rate is more than 2000 times.
Last year, Gou sold Alibaba shares twice, selling more than 3.5 million shares. In terms of the amount of selling, Hon Hai sold a total of US $670 million (about rmb4.7 billion / HK $5.2 billion) of Alibaba shares.
Together with the HK $3 billion sold this month, Hon Hai sold a total of HK $8.2 billion. Based on this calculation, Gou spent HK $272 million to subscribe for Ali. In the past 12 years, the return on investment was as high as HK $8.2 billion, and the return on investment exceeded 3000%.
Is Gou Taiming short of money?
Although every time Hon Hai group said in the announcement of reducing its holdings that the main purpose of selling Alibaba shares is to realize investment income, it seems that people all over the world know that selling Alibaba shares has almost become the most effective life-saving straw for Alibaba shareholders when they need money. Softbank is one of them.
Are the OEM factories in the world short of money?
According to the financial report of industrial Fulian, in the first half of 2020, the net cash flow from operating activities of industrial Fulian was - 5.234 billion yuan, compared with 6.439 billion yuan in the same period last year.
From the financial point of view, when the net cash flow of operating activities is negative, the net cash flow of investment activities is negative, and the net cash flow of financing activities is positive, it indicates that the enterprise needs to invest a lot of capital to form production capacity.
At present, Mr. Gou holds about 1337.9 billion shares of Hon Hai. According to preliminary calculation, by January this year, Gou Taiming had pledged 1.177.2 billion shares, accounting for about 83.5% of his total shares.
Although the reason for Gous pledge is unclear, two sources said on July 10 that Foxconns parent company, Hon Hai Precision Industries Co., Ltd., plans to invest $1 billion (about 6.7 billion yuan) to set up an apple mobile phone assembly plant in southern India in order to speed up the global layout outside China, two sources said.