Our monthly sales are about 10 million

"Several million in sales?"

Qiu Guoqing asked for confirmation.

"Oh, you're talking about sales."

Chen Yu felt a bit dizzy. He had initially thought Qiu was referring to profits, and indeed, their profits were several million. But when it came to sales, that was no longer the case.

"Director Qiu, our sales volume isn't just several million."

"I knew it."

Qiu Guoqing picked up his teacup and took another leisurely sip.

This was no joking matter. If their monthly sales were indeed in the millions, they would have tens of millions over the course of a year. Even with low profits, they would still make millions in a year. Some companies in Xinfeng did earn millions in a year, but most of them were involved in construction and real estate, businesses run by astute individuals with vast networks.

For such a small company, thinking of reaching sales in the millions per month was unrealistic. Most of them wouldn't even achieve that in a year.

However, Qiu Guoqing had been thinking this while Chen Yu directly stated, "If you include the sale of virtual items on our website, our monthly sales exceed 10 million."

"What..."

This time, the tea cup in Qiu Guoqing's hand was knocked over.

"Over 10 million in monthly sales?"

"Yes."

"Are you sure?"

"Absolutely."

The total sales of virtual items for the month was around 6 million, but they only earned 10% of that, or even less. When considering other expenses, including website development, operation, and strategy purchases, it was virtually a break-even venture. The real profit came from their promotion business.

"Director Li, this..."

Qiu Guoqing looked at Li Yan.

He didn't know what to say. Over 10 million in monthly sales? Was this some kind of joke?

Sales figures like this were rare, even for the entire Xinfeng. "Ahem, Chen Yu, Director Qiu is here to understand the company's situation. It's best to be honest."

Li Yan also felt that Chen Yu was bragging and added a few words on Qiu Guoqing's behalf.

Chen Yu couldn't help but laugh bitterly and said, "Gentlemen, I'm telling the truth."

"Manager Zhang, bring the contracts with NetEase and Shanda over."

In the future, when dealing with the tax authorities, they would have to submit their accounts for taxation periodically. So, Chen Yu decided to bring out the contracts.

"Gentlemen, the total virtual item transactions are quite complicated to track due to the constant movement of goods in and out. Here are two copies of the cooperation contracts we have with the two companies, please take a look."

Of course, the term "contracts" was a bit misleading, as Chen Yu only handed over a few pages of photocopies, excluding the more critical details of their cooperation.

"This is the cooperation contract with Shanda."

"Shanda? I haven't heard much about them."

"And this is the cooperation contract with NetEase."

"NetEase... My goodness, you're actually cooperating with NetEase?"

At this moment, Shanda couldn't compare to NetEase. Shanda didn't elicit much of a reaction from the two, but NetEase was a household name, especially with their email service that they frequently used.

"Yes, NetEase recently released a game called 'Westward Journey', and we helped them with the promotion."

"Right, NetEase did release a game," Li Yan nodded. He often saw advertisements for WJO when he logged onto NetEase's portal. However, he wasn't particularly interested in games due to his age, so he never played it.

"Chen, how much is the cooperation amount with NetEase?"

"Not much, just 2 million."

"What about Shanda?"

"Also 2 million. There might be a price increase in the future, but this price was agreed upon earlier, so it's not easy to change."

"My goodness, that's 4 million in total."

Seeing both contracts laid out before them, both Qiu and Li were taken aback, especially Qiu Guoqing. His impression of Chen Yu had undergone several transformations in a short period of time.

The moment he walked in, he had minor acknowledgment. Then, he thought Chen Yu was somewhat clever but within his expectations. Now, it wasn't about acknowledgment or expectations.

Even as the director of the tax bureau, Chen Yu had completely astounded him, and he didn't know how to evaluate the young man.

"How much do you expect to make in a month?"

Although he hadn't produced evidence for the 6 million yet, with these two contracts, it was reasonable to assume it wasn't a fabrication. Whether it was true or not, as the head of the tax bureau, he could easily find out.

"Well, Director Qiu, we won't make much, actually."

"Don't be fooled by our 4 million in promotion contracts with the two major companies. Over half of that is spent on promotion expenses. Additionally, our virtual item sales for this month, even though it appears to be 6 million, we only take a 10% commission, and sometimes even less, not even reaching 5%."

"This is just the beginning. The most important aspect is the development, operation, and promotion of the website, which costs us hundreds of thousands every month. When you consider all the expenses, we're not exactly in the profit zone."

Despite having recently made a significant profit, Chen Yu still had to appear financially strained. Even if he earned a lot, he couldn't claim to be making money.

"Mr. Chen, you're being modest."

Qiu Guoqing chuckled but didn't contradict Chen Yu. He regularly interacted with various companies and, though he couldn't accurately guess how much Chen Yu was making, achieving a monthly revenue over 10 million meant they were likely profitable.

"Director Qiu, perhaps you're not very familiar with the internet industry. The internet is a bottomless pit; no matter how much capital you have, it can be easily sunk. Some internet companies, despite their size and even nationwide recognition, don't make much. A single setback, and they could go bankrupt."

This was indeed true. Even a giant like Tencent had almost gone bankrupt several times.

"Yes, in recent years, internet development has been too rapid. Us old-timers have some trouble keeping up with the times."

"Exactly. My daughter keeps talking about something called QQ recently, and she says chatting online is even more fun than in real life."

"But it's a trend, and the government is actively supporting internet companies."

"Yes, like the recent reduction in broadband costs."

Both Li Yan and Qiu Guoqing sighed.

When Chen Yu heard this, he asked, "Director Qiu, the small and micro-enterprise tax exemption you mentioned earlier, do you have any quotas left?"

Qiu Guoqing wiped a tear from his eye as he looked at Chen Yu, smiling wryly. "Mr. Chen, with your monthly revenue exceeding 10 million, you're no longer a small or micro-enterprise. Even if I applied, it wouldn't be approved."

Chen Yu felt exasperated. If he had known earlier, he would have said that his monthly sales revenue was less than 10,000. However, it wouldn't have mattered because the authorities could easily check their financial records.

"In that case, it seems we won't be able to enjoy any tax incentives," Chen Yu said, frowning.

Chen Yu knew that the company had to pay a substantial amount of taxes. The corporate income tax alone was a hefty 25%, even if the internet industry was subject to a 5% business tax based on revenue. There were also value-added taxes, urban construction taxes, education taxes, personal income taxes, and more. The current tax situation was a significant financial burden.

"Relax."

Seeing Chen Yu's anxiety, Qiu Guoqing smiled and said, "With your level of technical expertise, you can easily apply for tax incentives for high-tech companies, even if you can't benefit from the tax exemption for small and micro-enterprises. Of course, the government needs to recognize you as a high-tech company."

Although there was a caveat, Chen Yu relaxed. He knew there was hope now.