maolilv: 毛利率 - Gross Profit Margin, Gross Margin

• Keywords: 毛利率, mao li lu, gross profit margin in Chinese, gross margin in Chinese, Chinese business terms, financial terms in Mandarin, how to say gross profit in Chinese, 毛利, 净利率, business profitability China.
• Summary: 毛利率 (máo lì lǜ) is the direct Chinese term for “gross profit margin” or “gross margin,” a fundamental financial metric used to assess a company's profitability. It represents the percentage of revenue left after subtracting the cost of goods sold (COGS). Understanding 毛利率 is essential for anyone analyzing Chinese companies, discussing business models, or investing in the Chinese market, as it reveals the core efficiency of a company's production and pricing strategy before other expenses are considered.

• Pinyin (with tone marks): máo lì lǜ
• Part of Speech: Noun
• HSK Level: N/A (Specialized Business Term)
• Concise Definition: A financial ratio that shows the percentage of revenue that exceeds the cost of goods sold.
• In a Nutshell: Think of it this way: if a company sells a phone for ¥1000 and it cost ¥600 to manufacture all the parts and assemble it, the “gross profit” (毛利 máolì) is ¥400. The 毛利率 (máo lì lǜ) is that profit (¥400) divided by the revenue (¥1000), which is 40%. It's a “before-expenses” look at how profitable each sale is, ignoring costs like marketing, R&D, and office rent.

• 毛 (máo): Literally means “hair,” “fur,” or “feather.” In a financial context, it takes on the meaning of “gross,” “rough,” or “unrefined.” Imagine a raw product before it's been cleaned and polished—that's the “gross” amount before deductions.
• 利 (lì): Means “profit,” “gain,” or “benefit.” This is the core financial component of the word.
• 率 (lǜ): Means “rate,” “ratio,” or “percentage.” It's a common suffix for any term that represents a rate.

The characters combine logically: “Gross/Rough” (毛) + “Profit” (利) + “Rate” (率) = Gross Profit Rate, which is a perfect literal translation of “Gross Profit Margin.”

While “gross profit margin” is a universal business concept, its emphasis in China has a unique flavor tied to the country's economic landscape. For decades, China has been the “world's factory.” In manufacturing and export-oriented industries, competition is incredibly fierce, and profit margins can be razor-thin. Therefore, 毛利率 (máo lì lǜ) is not just an abstract metric on a spreadsheet; it's a daily obsession for factory owners, managers, and supply chain specialists. A slight increase in raw material costs or a small dip in pricing can wipe out the entire 毛利率 for a product line. In the West, particularly in the tech or service industries, discussions might focus more on metrics like user growth, customer acquisition cost (CAC), or annual recurring revenue (ARR). In contrast, for a huge segment of the Chinese economy, the conversation always comes back to the fundamental profitability of making and selling a physical thing. An investor analyzing a Chinese manufacturing company will look at the stability and trend of its 毛利率 as one of the first and most critical indicators of its health and competitive strength.

毛利率 is a formal, technical term used in specific contexts. You won't hear it in casual conversation unless the topic is business, finance, or investing.

• In Business and Finance: This is its primary home. It's used constantly in financial reports (财报 cáibào), investor presentations, business meetings, and economic analysis. Both domestic and international companies operating in China rely on this metric.
• On Stock Market Forums: Chinese retail investors (股民 gǔmín) frequently discuss and compare the 毛利率 of different public companies as a key reason to buy or sell a stock. A company with a consistently high and stable 毛利率 is seen as having a strong “moat” or competitive advantage.
• In Startup Culture: When pitching to venture capitalists, a founder will need to clearly articulate the product's or service's 毛利率 to prove the business model is viable and scalable.

The term itself is neutral and analytical. There is no positive or negative connotation attached; it is simply a measure of performance.

• Example 1:
  • 这家公司的毛利率相当高，说明它的产品很有竞争力。
  • Pinyin: Zhè jiā gōngsī de máo lì lǜ xiāngdāng gāo, shuōmíng tā de chǎnpǐn hěn yǒu jìngzhēnglì.
  • English: This company's gross profit margin is quite high, which indicates its products are very competitive.
  • Analysis: A common way to praise a company's business model. A high 毛利率 is directly linked to competitiveness.
• Example 2:
  • 由于原材料成本上涨，我们今年的毛利率下降了三个百分点。
  • Pinyin: Yóuyú yuáncáiliào chéngběn shàngzhǎng, wǒmen jīnnián de máo lì lǜ xiàjiàng le sān ge bǎifēndiǎn.
  • English: Due to rising raw material costs, our gross profit margin has decreased by three percentage points this year.
  • Analysis: This sentence demonstrates how external factors directly impact the 毛利率. “百分点” (bǎifēndiǎn) means “percentage points.”
• Example 3:
  • 你能解释一下毛利率和净利率的区别吗？
  • Pinyin: Nǐ néng jiěshì yīxià máo lì lǜ hé jìng lì lǜ de qūbié ma?
  • English: Can you explain the difference between gross profit margin and net profit margin?
  • Analysis: A very common question for students of business or finance. This highlights the term's relationship with other key metrics.
• Example 4:
  • 苹果公司的毛利率一直保持在行业领先水平。
  • Pinyin: Píngguǒ gōngsī de máo lì lǜ yīzhí bǎochí zài hángyè lǐngxiān shuǐpíng.
  • English: Apple Inc.'s gross profit margin has consistently remained at an industry-leading level.
  • Analysis: Used to describe a company's long-term financial strength and market position.
• Example 5:
  • 降低生产成本是提高毛利率最直接的方法。
  • Pinyin: Jiàngdī shēngchǎn chéngběn shì tígāo máo lì lǜ zuì zhíjiē de fāngfǎ.
  • English: Reducing production costs is the most direct way to increase gross profit margin.
  • Analysis: This sentence describes a core business strategy related to the term.
• Example 6:
  • 分析师预测，该公司下一季度的毛利率将会有所改善。
  • Pinyin: Fēnxīshī yùcè, gāi gōngsī xià yī jìdù de máo lì lǜ jiāng huì yǒusuǒ gǎishàn.
  • English: Analysts predict that the company's gross profit margin will improve next quarter.
  • Analysis: Shows the forward-looking usage of the term in financial forecasting.
• Example 7:
  • 这个新产品的毛利率只有10%，我们可能需要重新定价。
  • Pinyin: Zhège xīn chǎnpǐn de máo lì lǜ zhǐyǒu bǎi fēn zhī shí, wǒmen kěnéng xūyào chóngxīn dìngjià.
  • English: This new product's gross profit margin is only 10%; we might need to rethink its pricing.
  • Analysis: Demonstrates the practical application of the metric in making business decisions like pricing.
• Example 8:
  • 投资者密切关注毛利率的变化趋势，而不是单一的数字。
  • Pinyin: Tóuzīzhě mìqiè guānzhù máo lì lǜ de biànhuà qūshì, ér bùshì dānyī de shùzì.
  • English: Investors pay close attention to the changing trend of the gross profit margin, rather than a single number.
  • Analysis: A more sophisticated point about financial analysis—trends are more important than snapshots.
• Example 9:
  • 我们的毛利率虽然不低，但高昂的营销费用侵蚀了大部分利润。
  • Pinyin: Wǒmen de máo lì lǜ suīrán bù dī, dàn gāo'áng de yíngxiāo fèiyòng qīnshí le dàbùfen lìrùn.
  • English: Although our gross profit margin isn't low, high marketing expenses have eroded most of the profit.
  • Analysis: This sentence clearly illustrates the difference between gross margin and the final net profit.
• Example 10:
  • 在财报电话会议上，CEO花了很长时间来解释毛利率波动的原因。
  • Pinyin: Zài cáibào diànhuà huìyì shàng, CEO huāle hěn cháng shíjiān lái jiěshì máo lì lǜ bōdòng de yuányīn.
  • English: On the earnings call, the CEO spent a lot of time explaining the reasons for the gross profit margin fluctuations.
  • Analysis: Shows the term's formal usage in corporate communications.

• 毛利率 (máo lì lǜ) vs. 净利率 (jìng lì lǜ): This is the most critical distinction.
  • 毛利率 (máo lì lǜ): Gross Profit Margin. Profitability before operating expenses (like marketing, salaries, rent).
  • 净利率 (jìng lì lǜ): Net Profit Margin. Profitability after all expenses have been deducted. It's the “bottom line.”
  • Mistake: Using 毛利率 when you mean the final, take-home profit. Remember 毛 (máo) is “rough/gross” and 净 (jìng) is “clean/net.”
• 毛利 (máo lì) vs. 毛利率 (máo lì lǜ):
  • 毛利 (máo lì): Gross Profit. This is an absolute monetary amount (e.g., ¥400).
  • 毛利率 (máo lì lǜ): Gross Profit Margin. This is a rate or percentage (e.g., 40%).
  • Mistake: Saying “我们的毛利率是五百万元 (Our gross margin is 5 million yuan).” You should say “我们的毛利是五百万元 (Our gross profit is 5 million yuan).”
• False Friend with “Gross”: In English, “gross” can mean “disgusting.” The character 毛 (máo) has no such connotation here. It purely means “before deductions” in this financial context.

• 净利率 (jìng lì lǜ) - Net Profit Margin. The profit margin after all operating costs are deducted; often considered the most important measure of profitability.
• 毛利 (máolì) - Gross Profit. The absolute currency value of profit before operating expenses, not the rate.
• 净利润 (jìng lìrùn) - Net Profit. The absolute currency value of profit after all expenses.
• 成本 (chéngběn) - Cost. The “Cost of Goods Sold” is the main cost deducted from revenue to calculate gross profit.
• 收入 (shōurù) - Revenue / Income. The “top line” number from which costs are subtracted.
• 利润 (lìrùn) - Profit. A general term for profit; can be ambiguous without specifying if it's gross or net.
• 财报 (cáibào) - Financial Report. The official document (like a quarterly or annual report) where you would find a company's 毛利率.
• 营业额 (yíngyè'é) - Turnover / Revenue. Another common and slightly more formal term for a company's total sales revenue.
• 盈利能力 (yínglì nénglì) - Profitability. The overall ability of a business to make a profit, for which 毛利率 is a key indicator.