Black technology: a super empire spanning two worlds

Chapter 219 [Return to the 20 trillion market value mark]

Other companies are trying various ways to avoid taxes or pay less taxes in order to expand their profit statements, but Lingjing Technology is completely the opposite of other companies. Since the profit margins from the two-world transactions are really too exaggerated, Xiao Yu has to lower profits from all aspects to make the company's corporate financial statement net profit margin become more "reasonable".

But even so, the company's net profit margin still exceeded 30%.

When it comes to paying taxes, people not only do not evade taxes, but choose to pay the most.

Taking the software and information technology service industry as an example, the value-added tax burden is generally around 6%. If the company is profitable, the corporate income tax burden may be in the range of 15% to 25%. The total tax amount is approximately between 15% and 20% of total revenue.

However, the total tax paid by Lingjing Technology accounts for about one-third of its total revenue, which is about half more than the tax paid by its peers.

In the eyes of many outsiders, this operation is simply incomprehensible. Even the people in the tax bureau think that Lingjing Technology's enthusiasm for paying taxes is too high.

However, as Xiao Yu successively established the HP Fund and transferred his 50% stake in Lingjing Technology to the HP Fund, etc., the series of things he did to benefit the general public, and the fact that the total tax paid by Lingjing Technology accounted for one-third of its total revenue, seemed reasonable in the eyes of outsiders.

Xiao Yu's current profit distribution of Lingjing Technology has truly achieved satisfaction among all three parties. The company's employees are happy with their high income and high welfare benefits, and the annual distribution of one-third of the profits has satisfied shareholders and investors. The government is of course also satisfied with such huge fiscal and tax revenues.

The dissatisfied ones are the capital groups of Magnesium West, because if Lingjing Technology wants to satisfy its employees, shareholders and the government at the same time, it needs to have sufficiently high profits to support it. Such high profits are essentially a profit squeeze on Magnesium West's enterprises or capital, either directly or indirectly.

Direct extrusion is obvious. For example, graphene materials are sold to foreign companies at twice the price. The quality of the product is the same, but it is twice as expensive.

Indirect squeezing out means that after some mainland companies obtained the supply of graphene materials from Lingjing Technology, the competitiveness of their products has been greatly improved, and they also have price advantages, which gives this company a huge competitive advantage over foreign-funded companies in the same industry segment. Many high-end industries have previously been dominated by European Magnesium's companies or capital. They are now increasingly unable to compete, and their profits are definitely squeezed out.

These companies are now not only chasing after European and American foreign companies in the domestic market, but have also launched an attack on the international market and gone overseas to grab more market share.

The more market share these companies capture, the more they will have to look to upstream supplier Lingjing Technology to purchase more goods, which will in turn drive a surge in both Lingjing Technology's revenue and profits.

Finally, Xiao Yu glanced at Yun Shu and said, "Let's release the semi-annual report tomorrow."

"Well, OK." Yun Shu nodded immediately. After a while, she added, "Should we distribute the dividends together?"

Xiao Yu nodded without hesitation and replied: "Of course, the profits made in the first half of the year will be divided directly."

According to Xiao Yu's original promise, one-third of the net profit earned by Lingjing Technology will be distributed as dividends to all shareholders of the company.

Xiao Yu thought for a moment and decided: "The net profit in the first half of the year was about 1168 billion, so we will divide it into 390.6 billion, which is easy to count, and it is just right to distribute 0.45 yuan per share."

Hearing this, Yun Shu nodded: "Then I will go and arrange for the board of directors to make a decision."

The dividend resolution still has to go through a process, and the procedure cannot be omitted, but it is just a matter of procedure and there will not be any resistance.

This is the company's second dividend distribution. The last time it distributed dividends based on the net profit for the whole year of 2022. The cash dividend scale was 243.04 billion yuan, and each share was paid out in cash of 0.28 yuan. This time it is for half a year, and the performance in the second half of the year will be distributed again.

However, the dividends in the first half of the year exceeded those in the whole of last year, and there was an increase of 147.56 billion. If the performance in the second half of the year is not unexpected, the dividends can be nearly 400 billion more. …

The next day, Saturday, at around 10 a.m., Lingjing Technology announced its interim results.

In the first half of the year, the company's annual revenue was 3653.65 billion yuan, a year-on-year increase of +237.53%; net profit was 1168.63 billion yuan, a year-on-year increase of +281.54%.

This performance result was about 200 billion yuan less in revenue than Xiao Yu had expected, but for various external analysis agencies, it was far beyond expectations, especially the scale of net profit, which can be said to have seriously exceeded expectations.

Lingjing Technology also announced the dividend resolution for the first half of the year. The company's second dividend is still a cash dividend, with a total dividend of RMB 390.6 billion, or RMB 10 in cash for every 4.5 shares.

Many value investors feel very happy about this. According to the expected growth rate, it won’t be long before Lingjing Technology can become a high-dividend stock and enjoy stable happiness.

Now, shareholders who have held the stock for more than one year do not have to pay taxes on cash dividends.

Influenced by this news, after the weekend, Lingjing Technology's stock price, which had already hit the daily limit last Friday, strengthened again at the opening on Monday, July 7, with a surge of +31% on the day. It closed at 8.63 yuan after the market, with a total market value of 220.23 billion yuan.

Not only is it close to returning to a market value of 20 trillion yuan, but the historical high of 239.89 yuan is also within sight. It only needs another increase of +8.92% to set a new historical high.

Today's trading volume is 2713 billion, which is 1243 billion less than the daily limit last Friday. Although the volume has been greatly reduced, the trading scale of 2713 billion is still exaggerated, and the capital siphoning effect on the entire A-share market is still strong.

Because the current overall market environment has not attracted too much incremental off-market funds, there are still nearly 3000 stocks that fell today. Among them, the funds outflowing from the decline of at least 2000 stocks have been siphoned into Lingjing Technology's plate.

On the following Tuesday and Wednesday, Lingjing Technology did not surge, but instead pulled back for two days, falling by -1.46% and -0.48% respectively. The trading volume on Wednesday dropped sharply to 1285 billion.

However, on Thursday, the stock price strengthened again, rising in volume and breaking through the previous high. It closed up +3.82% at 224.22 yuan that day, and the trading volume also increased to 2253 billion.

The stock price continued to rise on Friday, reaching an intraday high of 231.29 yuan, and closed up 2.96% on the day at 230.86 yuan per share. The total market value was 200386 billion yuan. Lingjing Technology returned to the 20 trillion yuan market value mark on the last trading day of this Friday.

Ever since Xiao Yu posted on Weibo that the company had a major technological breakthrough, in just about two weeks, Lingjing Technology's stock price has soared by more than 42 percentage points, and the company's market value has increased by a huge 6 trillion yuan.

Lingjing Technology has returned to a market value of 20 trillion, equivalent to approximately US$2.79 trillion, surpassing Microsoft's current market value of 2.49 trillion US dollars, ranking second in the world. The current largest stock by market value is Apple, with a total market value of an astonishing 3.07 trillion US dollars.

Current market investors generally believe that Lingjing Technology has been adjusting for half a year since it peaked at 239.89 yuan, and the adjustment is over. This time it is a real reversal rather than a temporary rebound. The market generally predicts that next week, the company's market value will hit a new historical high.

It only needs to rise another 3.72 percentage points next week to reach a new all-time high, and many investors optimistically predict that Lingjing Technology will definitely surpass Apple and become the world's largest stock by market value.

Moreover, many investors believe that if it were not for the current environment of the A-share market, Lingjing Technology would have long become the world's largest stock by market value, and would have been far ahead of the second place.

……

(End of this chapter)