Rebirth: Super Banking System

Chapter 1950: Chapter 1774: 40 Billion Profit

Tang Qing laughed and said.

In response.

Luo Qiang quickly said, “We trust the chairman’s decision.”

Heartache?

There is some.

But it depends on what it’s used for. He has complete trust in Tang Qing’s vision, moreover, even after going public, Tang Qing still controls Qingyuan Technology. His words are to be executed without question.

“No dividend distribution either.”

Dividends.

Are shareholders’ benefits. Many believe that when a public company gives dividends to stock investors, investors can profit. In reality, it’s a misconception. After dividends are paid out and ex-dividend is calculated, the market value held remains unchanged.

It’s very simple.

A company.

After going public.

With a market value of one million, a stock price of one yuan.

Has two hundred thousand shareholders, with 20% circulating shares. This year, having good luck, they earned two hundred thousand and decided to distribute one hundred thousand in dividends. Theoretically, each share could get ten cents.

How nice.

Each individual stock investor gets ten cents, equivalent to interest, seemingly earning.

But.

A company with a market value of one million, distributing one hundred thousand in dividends, does that mean its value became nine hundred thousand? Yes, that’s how it’s calculated. After dividends, it’s accounted for.

Thus.

Ex-dividend.

The stock price for each person becomes ninety cents, plus the ten cents distributed, the total assets for the retail investor remain one yuan, without any change. Hence, whether to distribute or not has little practical impact.

Are dividends useless?

Not entirely.

There is a benefit.

There is some significance.

First, when everyone sees you distributing money, it indicates profitability, good profits, proving it’s a decent company. Buy, and more people buying might drive the stock price up.

Secondly, for a shareholder like Tang Qing, the distribution is real cash. It’s merely converting his own money, but taxes are incurred. If Tang Qing draws one hundred billion, twenty billion in taxes.

Quite a lot.

Therefore.

Tang Qing is also reluctant to take it.

Keep it in the company.

Invest in projects. Anyway, all his projects can use this money. Taking it out incurs taxes; why bother? As for the company’s employees, there’s the annual bonus, so no one cares about the dividends.

This year.

Qingyuan Technology’s profit is much higher than last year. Last year’s profit was over twenty billion, and this year it’s nearly forty billion, mostly due to the effect of 4G proliferation, and additional profits from tablets, computers, and peripherals.

Very profitable.

However.

The profit doesn’t match Apple’s prime. The reason is in the Western markets and its leading markets, where Epoch lost a significant portion of profits to ERV’s phones, with similar sales to Epoch.

Fortunately.

This is a battle between the left and right hands, good enough.

Besides.

There’s also Huawei and Zhiya’s mid to low-end smartphone market strategy, aiming to suppress Samsung’s rise and relegating it to being just a component supplier, which took quite an effort.

Now.

The smartphone market is like a melee.

Epoch.

ERV.

Huawei.

The three are fighting fiercely, while other brands tremble.

…

In the afternoon.

Guests arrived one after another, all with invitations specifying arrangements, without wandering around, heading straight to the East Gate Hotel. Most weren’t local to the Shanghai Stock Market area, and didn’t have branches here.

Hence.

Qingyuan Technology also arranged airport shuttles.

Very considerate.

Among the invitees.

Only a quarter were entrepreneurs, with most being scholars and professors. Nearly all 985 and 211 schools received invitations, and more than ten academicians from the Chinese Academy of Sciences came.

It’s quite grand.

This time.

The invitation wasn’t solely from Qingyuan Technology, but also from the Shanghai Municipal Committee. Back then, bringing such a large project to the Shanghai Stock Market required efforts, so naturally, they supported when necessary.

The municipality is also willing.