Lei Jun (Lei Jun)

Lei Jun (Lei Jun)

Biography

1969-1991

Was born in 1969 in the small town.

In 1991 received degree of the bachelor of information science at the Wuhan university, now is his honorary professor.

1998-2004

Began to work in Kingsoft company, software developer. In 1998 became the CEO of Kingsoft. In parallel in 2000 created the website Joyo.com from which users downloaded books and media files. In 2004 sold Joyo.com of Amazon.com company for $75 million.

2007

After IPO Kingsoft on the Hong Kong stock exchange in 2007 became the venture investor — made investments in 20 startups, for example, in a payment service of Lakala and in online store of Vancl clothes.

2010

In April, 2010 founded Xiaomi Inc. company which released August, 2011 the first smartphone at the cost of $313. In four years Xiaomi became one of leading manufacturers of smartphones, the gadgets made by it are similar to products of Apple and Samsung, but is much cheaper.

2019

Receiving a bonus in $1 billion and its transfer on charity

On April 11, 2019 it became known that the Chinese smartphone manufacturer of Xiaomi appointed to the founder and the CEO Lei to Jun an award in the amount of nearly $1 billion. The bonus was handed in the form of 636.6 million stocks of the company (their total cost at the time of closing in biddings on the Hong Kong stock exchange was on April 11 about $956 million) and became one of the largest during all the time.

Follows from documents which Xiaomi provided to the finance regulator that Lei Jun directed to charity all the extra fee after a deduction of taxes. Neither the company, nor its head specified where exactly so large sum was offered.

In 2018 the company got about $1.3 billion profit so an award Lei to Jun made 75% of this amount. Xiaomi notes that it is immediate compensation for all efforts which Jun enclosed in eight years of a company performance.

the ompaniya had to make the statement in response to the impartial news articles accusing Xiaomi of fraud – representatives of the company emphasized that the bonus was written out Lei to Jun voluntarily for loyalty of the founder to Xiaomi and does not exceed the profit of the company.

Earlier to media there went information that Lei Jun earned $1.5 billion from a post of the head of Xiaomi at the end of 2018. At five other highest paid directors of Xiaomi total remuneration was approximately the same amount.

At the expense of low prices the market share of Xiaomi steadily grows in the industry of smartphones. Though China and India remain the largest markets of the company, Xiaomi gradually gets on the markets the European countries. The company successfully reflected threats of competitors in the Indian market and, as a result, even began to drive out of the market Samsung, a brand of smartphones No. 1 in India. However stocks of Xiaomi dropped almost by 50% by April, 2019 in comparison with peak indicators of the 2018th. Taking into account fall of stocks market capitalization of Xiaomi made $11 billion^[1]

Loss of 9.6 billion rubles in a dispute

At the end of April, 2019 it became known that Lei Jun lost 1 billion yuans (about 9.6 billion rubles) in a dispute with Dong Mingzhu heading the producer of Gree Electric Appliances conditioners, largest in China.

Entrepreneurs concluded a bet in 2014 on air of one of the Chinese TV channels. Lei Jun said that in five years revenue of Xiaomi will be more, than at Gree Electric.

The head of Xiaomi Lei Jun lost 9.6 billion rubles in a dispute on revenue of the company

Let the whole country will become the witness if in five years our revenue exceeds Gree revenue. The chairman Doon, please, pay me one yuan  — the founder and the head of Xiaomi said then.

Dong Mingzhu hosted a dispute and to suggest to increase a rate to 1 billion yuans.

According to Bloomberg news agency, on April 28, 2019 Gree Electric Appliances published financial data according to which sales to the company in 2018 reached 198 billion yuans ($29.4 billion). It approximately for 20 billion yuans ($2.97 billion) is more, than at Xiaomi for  the same period.

By the end of April not clearly whether Lei Jun is going to give really lost money. Xiaomi abstains from comments. Observers of Bloomberg note that in 2013 the statement Lei Jun was apprehended as attempt of "upstart" to throw down a challenge to Gree Electric Appliances company which at the time of betting exceeded Xiaomi on all indicators — from revenue to the number of factories and employees.

The lost dispute can negatively affect reputation of Xiaomi. For smartphone manufacturer 2018 was issued not to the most successful: from the moment of entry into the Hong Kong exchange in July, 2018 stocks of the company fell in price for 30%.

The edition also reminds that gamblings on the mainland of China are prohibited.

By April 29, 2019 Lei Jun takes the 143rd place in the Forbes list. Its fortune is estimated in $9.6 billion^[2]

Jun Lei entered the rating of the richest people of the People's Republic of China

On October 20, 2020 the Chinese magazine Hurun published the rating of the richest citizens of the People's Republic of China. Sanctions of the USA against the Chinese telecommunication giant Huawei undermined private means of the founder of the company Ren Zhengfeya, even in spite of the fact that efforts on development of a 5G positively influence a status of other billionaires in China. Read more here.

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