On March 31, Lenovo Group released its latest performance report, and the information obtained from the report shows that The revenue achieved by Legend Holdings in 2021 was 489.8 billion yuan, an increase of 17% year-on-year, and the net profit was 5.7 billion yuan, an increase of nearly 50%. Judging from these two data, Lenovo has achieved good performance growth, especially the increase in profit level is high.
However, Lenovo's profit margin is only 1.16%, compared with other companies, Lenovo's profit margin is still too low, to know that Xiaomi's net profit margin is 6.7%, BOE reached 11.7%, SMIC is as high as 30%, private giant Huawei's profit margin is 17%, and compared with these technology companies, Lenovo's profit margin is almost not worth mentioning.
Lenovo's low profit margin, largely because of its own lack of core technology, most of the spare parts and core components need to be imported from abroad, Lenovo's PC sales rank first in the world, the global market share of up to 25%, which is an indisputable fact, but most of the core components can not be manufactured independently, can only be imported, and then assembled and produced, the scale continues to rise, but the profit margin is very low.
Looking at Huawei's 2021 performance report, Huawei's revenue in 2021 was 636.8 billion yuan, down 28%, and the decline in revenue has a lot to do with the supply chain, such as chip shortage, and net profit reached 113.7 billion yuan, an increase of 76% year-on-year.
Huawei's revenue fell nearly 30%, why did profits rise by 76%? In fact, Huawei's 2021 sale of honor and other subsidiaries generated revenue of 57.4 billion, if you put aside this part, Huawei's actual core profit is 56.3 billion, the profit margin is 8.8%, the profit margin is still not low, much higher than Lenovo.
In fact, Huawei and Lenovo are taking two completely different paths, and no one is right or wrong. From the perspective of R& D investment, Huawei's R& D investment in 2021 exceeded 140 billion yuan, reaching 142.7 billion yuan, a new high, while Lenovo's R & D investment was less than 20 billion, Lenovo said that the average annual R & D investment target for the next 3 years is 20 billion.
Huawei's R&D investment in the past 10 years has reached a total of 845 billion yuan, not only Lenovo, which is almost a height that no other private enterprise can reach, which has also led to Huawei's continuous breakthroughs in the core technology field, such as HiSilicon Semiconductor and 5G Communications, which have reached the world's leading level.
From the perspective of profit, Huawei's net profit was 113.7 billion yuan, and Lenovo's was 5.7 billion, equivalent to 1/20 of Huawei's. It is worth mentioning that Yang Yuanqing, chairman of Lenovo Group, said in an internal letter on March 31 that he would give up the bonus of 80 million yuan and use the 80 million yuan to reward front-line employees.
Lenovo Group's performance has continued to grow over the years, and yang Yuanqing, as the chairman of Lenovo Group, has also continued to rise in salary, with an annual salary of up to 100 million yuan and an annual salary of 177 million yuan at the highest time. At the beginning of 2022, Yang Yuanqing reduced his holdings in Lenovo stock for 4 consecutive days, and the cash amount reached 300 million yuan.
I have to sigh that Huawei is engaged in technology, and Lenovo is cashing out! Huawei has not been listed so far, and there is no cash-out stock, but Huawei's internal employees can get huge dividends, this kind of bonus incentive is very real, let you work overtime is true, giving you enough subsidies and funds is also a fact, and Lenovo chairman takes 100 million wages every year, but also cash out 300 million, of course, this practice is understandable, but the contrast is different.
At present, many Internet manufacturers announced layoffs and reduced cost expenditures, but Huawei rotating chairman Guo Ping said that in the first two years, Huawei recruited 26,000 fresh graduates, and Huawei plans to recruit another 10,000 graduates in 2022, Huawei will continue to attract outstanding talents to join, and Huawei's cash reserves are as high as more than 200 billion, and there is no shortage of money, and excellent talents are Huawei's biggest development drivers.