King china glass donated 3.8 billion yuan and promised never to look back.

Cao Dewang was interviewed by reporters.

　　Last year, Bill Gates, the richest man in the world, and Warren Buffett, who ranked second in the global wealth list, donated their property one after another. At home, many entrepreneurs have followed suit. There are many rich people who have announced the donation of huge assets, and even have their own naked donations. However, these behaviors often attract a voice of doubt, and they are accused of being a show, or even a secret for commercial operation. Not long ago, another rich man, Cao Dewang, the chairman of Fuyao Glass, stood up and declared that he would also donate most of his personal assets to accumulate virtue and do good deeds. Will he be questioned like this?

　　Cao Dewang’s 60% stock donation foundation under the name of Cao Shi family was questioned.

　　Reporter: "Today, we visited Cao Dewang, the chairman of Fuyao Glass Co., Ltd., who is the king of glass in China. Every two cars in China use Fuyao glass. In the past five years, Cao Dewang has invested more than 5 billion yuan in industrial expansion, so the outside world also called him an industrial expansion crocodile. Recently, this glass crocodile suddenly announced that he would donate most of his shares and those of his family. The news is indeed caused by rumors and speculations from the outside world. What is the mystery of this? Let’s go to Cao Dewang’s home in Fuzhou and seek answers from him. "

　　To outsiders, Cao Dewang, the glass king of China, can be said to have lived an enviable rich and peaceful life. However, in March this year, Fuyao Glass issued an announcement to the outside world, which unexpectedly broke the now peaceful life in Cao Dewang.

　　Cao Dewang, Chairman of Fuyao Glass Co., Ltd.: "I began to choose to retire, and it is useless to get this money back. I can’t sell this stock in that place, and I don’t want to sell it. I will stay in that place to pay dividends and take it out. There is no place to invest, so many people still don’t have a house. I will take it out to do good deeds and accumulate virtue."

　　In February this year, Cao Dewang revealed in an interview that he would donate 70% of Cao Shi’s shares to the Foundation. However, the official announcement of Fuyao Glass on March 5th showed that the original donation figure of 70% proposed by Cao Dewang was reduced to 60%. Why did the donation figure decrease?

　　The announcement is interpreted to avoid the complicated procedures and huge cost of triggering tender offer. According to the Measures for the Administration of the Acquisition of Listed Companies, when the acquirer, that is, the future charitable foundation, wants to own more than 30% of Fuyao Glass by agreement, it must make a full or partial offer to the shareholders of Fuyao Company and buy back the shares in cash. In the end, Cao Dewang can only choose to donate 29.5% of the company’s total share capital, which is exactly equivalent to 60% of the shares held by the Cao Shi family.

　　Cao Dewang: "What Cao Dewang donated will never look back. It’s not mine. I threw it away."

　　In fact, it is not uncommon for entrepreneurs to donate shares naked before. For example, the founder of a well-known domestic enterprise founded a foundation in his name. However, it was later discovered that the money originally promised for charity was actually mortgaged to Morgan Stanley for loan. Under the background of current business difficulties and tight funds, is Cao Dewang’s donation just another capital game?

　　Reporter: "Are you doing capital operation? Through this kind of foundation, this inexplicable way has actually turned these shares into a kind of treasury that you can use in Cao Dewang?"

　　Cao Dewang: "Bill Gates abroad went bankrupt personally, and he couldn’t use any money from the foundation. Cao Dewang’s donation set an example for China people. If it is donated, it won’t be mine. It is the money of those in need in China, and it will be supervised by the public."

　　In fact, in order to build this charity, Cao Dewang entrusted Fujian law firms and local banks to provide operational plans as early as a year ago. However, these plans all involved a fundamental problem, which made Cao Dewang very dissatisfied.

　　Reporter: "What kind of framework is it?"

　　Cao Dewang: "Protect my framework. What I am doing now is not protecting my framework."

　　Reporter: "What’s the difference?"

　　Cao Dewang: "This plan is for me to be the trustee and the client. This equity trust is given by the equity trust, and the trust is given to the trust institution. This equity is still in my pocket and has not been donated. The person who did it with me is my good friend. All those who advised me, 80% mentioned this plan."

　　Cao Dewang thinks that both the lawyer and the custodian bank have set up an equity trust in the middle of the stock donation plan for him, so that the actual ownership of these donated stocks is still in Cao Dewang’s hands, and once Cao Dewang or the company needs it, these funds can be used at his own disposal at any time. Cao Dewang feels that this donation method is fooling the public.

　　Cao Dewang: "The scheme I made here, I said I don’t want to protect it, so I will donate the money to this (charity) organization."

　　Reporter: "There is no intermediate commission."

　　Cao Dewang: "Nothing."

　　Reporter: "There is no intermediary agent."

　　Cao Dewang: "I will handle the transfer procedures for you (Foundation)."

　　Another question reported by the outside world about this charitable donation is: since Fuyao Glass went public, the funds raised from the capital market are 703 million yuan, but by the end of 2008, Fuyao Glass’s annual cash dividend has accumulated to 1.22 billion yuan; At the same time, the total amount of shares issued and transferred to shareholders is as high as 1.88 billion yuan. However, this famous cash machine in the stock market did not pay dividends in any form last year. Why is Fuyao’s wealth used for charity but not for shareholders?

　　Reporter: "The word Fuyao Glass has always been synonymous with laying hens in the A-share market, because over the years, the total amount of dividends you have made to shareholders has even exceeded the total amount you have raised from the stock market, but it is precisely this year that you have not made such dividends, so there is a saying outside that you have started to be an iron rooster this year. Can you accept this statement?"

　　Cao Dewang: "Sometimes you can’t pay dividends. Like this year’s economic crisis, you can’t pay dividends, because Fuyao is a highly indebted enterprise. At this time, my major shareholder should consciously cooperate with the bank and don’t hollow out the company’s money and win the trust of the bank. In fact, this year’s dividend is the most cost-effective for me."

　　Reporter: "Dividends are actually more for you, Cao Dewang and your wife."

　　Cao Dewang: "Think about it this way. There are 2.1 billion shares, of which I account for 480 million shares, 54%, and I get 100 million points. I get 54 million points, 200 million points, and I get 108 million points. Do you want to give it to me or to you (the minority shareholder)? They say I am a miser, and I can’t accept it."