máolìrùn: 毛利润 - Gross Profit

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• Summary: Discover the meaning of 毛利润 (máo lìrùn), the essential Chinese business term for “gross profit.” This guide breaks down the characters 毛 (máo), 利 (lì), and 润 (rùn) to show how they form this fundamental concept. Learn how to use it in practical business contexts, understand its cultural significance in modern China, and see how it differs from net profit (净利润, jìng lìrùn) through clear examples and analysis. This is a must-know term for anyone doing business or studying finance in a Chinese-speaking environment.

• Pinyin (with tone marks): máo lì rùn
• Part of Speech: Noun
• HSK Level: N/A (Considered advanced or specialized business vocabulary, beyond the standard HSK levels)
• Concise Definition: The profit a company makes after deducting the direct costs of producing and selling its goods or services (Cost of Goods Sold).
• In a Nutshell: 毛利润 (máo lìrùn) is the first and most basic measure of a company's profitability. Think of it as the money you have left from sales after paying for the direct materials and labor used to create your product. It's “gross” or “rough” (the meaning of 毛) because you haven't yet subtracted other business expenses like rent, marketing, or administrative salaries. It's a crucial number for understanding how efficiently a company makes and sells its core offerings.

• 毛 (máo): While its most common meaning is “hair” or “feather,” in a financial context, 毛 takes on the meaning of “gross,” “rough,” or “unprocessed.” It implies a figure that has not yet been refined or had further deductions made.
• 利 (lì): This character means “profit,” “benefit,” or “advantage.” It's the core concept of financial gain.
• 润 (rùn): Meaning “moist” or “smooth,” this character often carries connotations of benefit and prosperity. Here, it combines with 利 to form the common business word 利润 (lìrùn), which is the standard term for “profit.”

When combined, 毛 (máo) + 利润 (lìrùn) literally translates to “gross/rough profit,” a perfect and direct equivalent of the English term “gross profit.”

While “gross profit” is a universal accounting principle, the term 毛利润 (máo lìrùn) is deeply embedded in the practical, results-driven nature of modern Chinese business culture. In a society that has experienced rapid economic growth, metrics that clearly show profitability and efficiency are highly valued and frequently discussed. Unlike some nuanced cultural concepts, 毛利润 (máo lìrùn) is a direct parallel to the Western concept of “gross profit.” The cultural aspect lies in its frequent and open usage. Discussing profit margins, revenue, and costs is a common and straightforward part of business conversations in China, perhaps more so than in some Western cultures where direct talk about money can sometimes be considered blunt. For entrepreneurs, investors, and managers in China, a company's 毛利润 is the first vital sign of its health and potential.

毛利润 (máo lìrùn) is a formal and technical term used primarily in business, finance, and accounting. You will encounter it constantly in these settings.

• In Business Reports & Meetings: It is a standard line item on an income statement (利润表, lìrùn biǎo). Executives will discuss strategies to increase 毛利润 by either raising prices or lowering the cost of goods sold.
• In Financial News: News articles analyzing a company's performance will almost always mention its 毛利润 and gross profit margin (毛利率, máo lìlǜ).
• For Entrepreneurs: Anyone starting a business in China must understand their projected 毛利润 to create a viable business plan and secure funding.

The term is neutral and analytical. It's a statement of fact, not something that carries a positive or negative connotation on its own, though a high 毛利润 is obviously a positive indicator.

• Example 1:
  • 我们公司上个季度的毛利润增长了百分之二十。
  • Pinyin: Wǒmen gōngsī shàng ge jìdù de máo lìrùn zēngzhǎng le bǎifēnzhī èrshí.
  • English: Our company's gross profit grew by 20% last quarter.
  • Analysis: A standard and formal sentence you would hear in a business meeting or see in a financial report.
• Example 2:
  • 要计算毛利润，你需要从总收入中减去销售成本。
  • Pinyin: Yào jìsuàn máo lìrùn, nǐ xūyào cóng zǒng shōurù zhōng jiǎnqù xiāoshòu chéngběn.
  • English: To calculate gross profit, you need to subtract the cost of sales from the total revenue.
  • Analysis: This sentence explains the basic formula for calculating 毛利润.
• Example 3:
  • 虽然我们的销售额很高，但是毛利润太低了，这说明成本控制有问题。
  • Pinyin: Suīrán wǒmen de xiāoshòu'é hěn gāo, dànshì máo lìrùn tài dī le, zhè shuōmíng chéngběn kòngzhì yǒu wèntí.
  • English: Although our sales volume is high, the gross profit is too low, which indicates a problem with cost control.
  • Analysis: This shows how 毛利润 is used as a key performance indicator to diagnose business problems.
• Example 4:
  • 投资者非常关心这家科技公司的毛利润率。
  • Pinyin: Tóuzīzhě fēicháng guānxīn zhè jiā kējì gōngsī de máo lìrùn lǜ.
  • English: Investors are very concerned about this tech company's gross profit margin.
  • Analysis: Note the use of 毛利润率 (máo lìrùn lǜ), meaning “gross profit margin,” a closely related and important concept.
• Example 5:
  • 提高产品价格是增加毛利润最直接的方法之一。
  • Pinyin: Tígāo chǎnpǐn jiàgé shì zēngjiā máo lìrùn zuì zhíjiē de fāngfǎ zhīyī.
  • English: Raising product prices is one of the most direct ways to increase gross profit.
  • Analysis: A sentence discussing business strategy related to 毛利润.
• Example 6:
  • 在扣除运营费用和税款之前，我们先看看毛利润。
  • Pinyin: Zài kòuchú yùnyíng fèiyòng hé shuìkuǎn zhīqián, wǒmen xiān kànkan máo lìrùn.
  • English: Before deducting operating expenses and taxes, let's first look at the gross profit.
  • Analysis: This clearly positions 毛利润 as a preliminary profit figure.
• Example 7:
  • 他们的毛利润是负的，意味着他们卖产品的收入甚至无法覆盖生产成本。
  • Pinyin: Tāmen de máo lìrùn shì fù de, yìwèizhe tāmen mài chǎnpǐn de shōurù shènzhì wúfǎ fùgài shēngchǎn chéngběn.
  • English: Their gross profit is negative, which means their revenue from selling products can't even cover the production costs.
  • Analysis: This example demonstrates a negative gross profit scenario, which is a very serious business problem.
• Example 8:
  • 不同行业的毛利润水平差异很大。
  • Pinyin: Bùtóng hángyè de máo lìrùn shuǐpíng chāyì hěn dà.
  • English: The level of gross profit varies greatly across different industries.
  • Analysis: A general statement about business principles, perfect for a textbook or a lecture.
• Example 9:
  • 小老板每天晚上都会计算当天的毛利润。
  • Pinyin: Xiǎo lǎobǎn měitiān wǎnshang dōu huì jìsuàn dàngtiān de máo lìrùn.
  • English: The small business owner calculates the day's gross profit every evening.
  • Analysis: Shows the term's relevance even for small-scale entrepreneurs, not just large corporations.
• Example 10:
  • 别把毛利润和净利润搞混了，它们是两个完全不同的概念。
  • Pinyin: Bié bǎ máo lìrùn hé jìng lìrùn gǎo hùn le, tāmen shì liǎng ge wánquán bùtóng de gàiniàn.
  • English: Don't confuse gross profit with net profit; they are two completely different concepts.
  • Analysis: This sentence directly addresses the most common point of confusion for learners.

The most significant and common mistake for learners is confusing 毛利润 (máo lìrùn) with 净利润 (jìng lìrùn).

• 毛利润 (máo lìrùn) - Gross Profit: The profit before subtracting operating expenses (like rent, marketing, administrative salaries) and taxes. It only accounts for the direct cost of goods sold. `Formula: Revenue - Cost of Goods Sold`.
• 净利润 (jìng lìrùn) - Net Profit: The “bottom line” or “take-home” profit. This is what's left after all expenses, including operating costs, interest, and taxes, have been deducted from revenue. `Formula: Gross Profit - All Other Expenses`.

Incorrect Usage Example:

• Incorrect: 我这个月赚了很多毛利润。 (Wǒ zhè ge yuè zhuàn le hěn duō máo lìrùn.)
• Why it's wrong: This sounds unnatural. In casual conversation about personal earnings or a small shop's daily take, people are more likely to use 赚钱 (zhuànqián) (to make money) or simply 利润 (lìrùn) (profit). 毛利润 (máo lìrùn) is a formal accounting term and sounds overly technical in a simple, personal context.
• Correct Casual Usage: 我这个月赚了不少钱。(Wǒ zhè ge yuè zhuàn le bù shǎo qián.) - I made quite a bit of money this month.

• 净利润 (jìng lìrùn) - Net profit. The profit remaining after all expenses and taxes are paid. This is the crucial counterpart to 毛利润.
• 毛利率 (máo lìlǜ) - Gross profit margin. A percentage calculated as (Gross Profit / Revenue) x 100, used to assess a company's financial health.
• 营业收入 (yíngyè shōurù) - Operating revenue or sales. The total income generated from a company's primary business activities.
• 成本 (chéngběn) - Cost. A general term for cost or expenses.
• 销售成本 (xiāoshòu chéngběn) - Cost of Goods Sold (COGS) or cost of sales. The direct costs attributable to the production of the goods sold by a company.
• 利润 (lìrùn) - Profit. The general, all-encompassing term for profit. 毛利润 and 净利润 are two specific types of 利润.
• 盈利 (yínglì) - To make a profit; gain. Often used as a verb or noun to describe the state of being profitable.
• 亏损 (kuīsǔn) - Loss; deficit. The opposite of profit, when expenses exceed income.
• 净利率 (jìng lìlǜ) - Net profit margin. A percentage calculated as (Net Profit / Revenue) x 100.