Data show that in 2020, Huawei's revenue will reach 894.1 billion, net profit will reach 64.6 billion, and tax revenue will reach 101 billion. In 2020, Tencent had revenue of 482.1 billion, net profit of 159.8 billion, and taxes of more than 20 billion; Alibaba had revenue of 509.7 billion, net profit of 149.3 billion, and taxes of 36.6 billion. Why does Tencent and Alibaba’s net profits exceed Huawei’s by more than 80 billion, but they pay less taxes than Huawei? 1. First of all, the two companies are registered in different places and have different tax requirements and conditions

Tencent and Alibaba are registered in the tax haven of the Cayman Islands, while Huawei insists that its registered place is in my country, so the situation That's it. Registering a company in the Cayman Islands only requires a small annual management fee. There is no corporate income tax or personal income tax, and registration procedures are simple.

If the family company is registered in Cayman, the secondary listed company is also registered in Cayman, the third-level shell company is registered in Hong Kong, the fourth-level Hong Kong and Macau investment companies are registered in my country, and the fifth-level operation The company is registered in my country. The levels are very clear. Domestic operating companies allocate all profits to Hong Kong and Macau-invested enterprises, and then distribute their profits to Shell companies in Hong Kong. The corporate income tax of Hong Kong companies is only 5%, and the rest is paid to Cayman companies.

It is understood that by the end of 2020, more than 110,000 companies have been registered in the Cayman Islands. Well-known domestic companies such as Dangdang, Qihoo 360, and Sina are all registered in the Cayman Islands. 2. Huawei is a hardware company, and Tencent is an Internet company

Huawei attaches great importance to talents, technological innovation, and product development. All of this requires a constant cost of money and time. It requires significant investment in these talents and equipment. Huawei has 10,000 doctors and dozens of Russian mathematicians. In 2015, Huawei even entered the top ten non-military companies in the world in terms of R&D funding!

Tencent’s main profits are advertising profits, some QQ value-added services and games. Games account for the majority. With almost only development and server protection, Tencent will naturally have social traffic. Tencent has a huge advantage in games, and games are the most profitable. Honor of Kings even provides Tencent with a record of exceeding 100 million yuan per day without requiring much investment. This is very simple, so the profits of Internet companies like Tencent can easily reach 80%. For those who are actually engaged in manufacturing like Huawei, although the bill looks gorgeous, how many people can understand the payment involved? Moreover, Huawei's annual profits pale in comparison to companies like Tencent that make money on the Internet. 3. Hardware companies have high costs, while Internet companies have lower costs

For Huawei and other hardware companies, the costs are huge. Every link has costs, such as employee wages, equipment depreciation, marketing expenses, high research and development costs, etc. Therefore, Huawei's research and development costs in 2017 were as high as 100 billion yuan. But Internet companies have relatively little capital. Apart from manpower, marketing, and hardware, they have almost no capital.

So as early as 2017, Huawei’s revenue reached 603.6 billion yuan and its net profit was 47.5 billion yuan; while Tencent’s revenue was 237.76 billion yuan, but its net profit was as high as 71.5 billion yuan. Huawei’s revenue was higher than Alibaba’s and Tencent combined. 4. There are too many ways to make money on the Internet, but the forms of hardware companies are very limited

The forms of hardware companies are limited. In addition to hardware sales, it is enterprise services. In addition, other income is also very small. However, the Internet can change its form to make money, become a member, sell advertising, play games, do entertainment, do e-commerce, etc. Therefore, the valuation of Internet companies is so high, but we are fortunate to have Huawei.

Ultimately, Huawei is fully employee-owned and is famous for its high salaries and year-end bonuses. In Ren Zhengfei's view, people who work in finance can make a lot of wealth just by relying on virtual concepts, while those who actually roll up their sleeves and work hard can only earn a meager salary. This is the most unreasonable thing in the world. Therefore, Huawei has never been stingy with its employees. It receives high salaries, high year-end bonuses, good benefits, and treats its employees as wives. Behind the huge salary, of course, Huawei's profit account does not look good.