jìng lì rùn: 净利润 - Net Profit, Net Income

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• Summary: Learn the essential Chinese business term 净利润 (jìng lì rùn), which directly translates to “net profit” or “net income.” This guide is perfect for anyone interested in Chinese business, finance, or economics. We'll break down the characters, explore its cultural significance in China's dynamic economy, and provide dozens of practical examples to help you understand company financial reports and business discussions in Mandarin. Discover the difference between 净利润 and similar terms like 利润 (lìrùn) and 毛利润 (máo lì rùn) to speak with more precision.

• Pinyin (with tone marks): jìng lì rùn
• Part of Speech: Noun
• HSK Level: HSK 6+ (Specialized Business/Finance Term)
• Concise Definition: The total profit of a business entity after all expenses, including taxes and interest, have been deducted from total revenue.
• In a Nutshell: 净利润 is the “bottom line”—it's the real, take-home profit a company actually keeps after paying all its bills. If revenue is the money flowing in, 净利润 is the small, “clean” portion left in the bucket after all the leaks (costs, taxes, etc.) have been accounted for. A high 净利润 means a company is healthy and successful.

• 净 (jìng): This character means “clean,” “pure,” or “net” (as in net weight). It's composed of the “ice” radical 冫 on the left and 争 (zhēng) on the right. Think of it as making something so clean it's as pure as ice. In finance, it means the “net” amount after all deductions are “cleaned away.”
• 利 (lì): This means “profit,” “benefit,” or “advantage.” The character is a pictogram of a knife (刂) harvesting grain (禾). Cutting and collecting grain was one of the earliest forms of generating a surplus or profit.
• 润 (rùn): This character also means “profit” or “gain,” but its original meaning is “moist” or “to lubricate.” It has the “water” radical 氵. Think of profit as something that “moistens” or enriches one's finances, making things run smoothly.

When combined, 净利润 (jìng lì rùn) literally means “clean/net profit-gain.” The pairing of 利 and 润 creates a formal, financial term that specifically refers to the final, purified profit.

While “net profit” is a universal business concept, 净利润 (jìng lì rùn) holds a special place in the context of modern China's economic narrative. For the past few decades, China's story has been one of explosive economic growth. Consequently, financial metrics like GDP growth, revenue, and especially 净利润 have become part of the public consciousness. The 净利润 of major corporations like Tencent, Alibaba, and Huawei are reported on the nightly news and are seen as indicators of national strength and global competitiveness. This is subtly different from the West, where net profit is primarily a concern for investors and employees. In China, the performance of major companies, as measured by their 净利润, is often tied to national pride and the government's economic goals. Comparing 净利润 to the American concept of “the bottom line” is very direct. Both refer to the final profit figure. However, the cultural backdrop differs. In the US, maximizing the bottom line is often seen as a company's primary duty to its shareholders within a free-market framework. In China, while shareholder value is crucial, the pursuit of 净利润 can also be influenced by state industrial policy, long-term strategic goals set by the government, and the social responsibility to maintain employment. Therefore, a company's 净利润 might be analyzed not just for its financial health, but for its alignment with broader national objectives.

净利润 is a formal and specific term used primarily in business, finance, and economic contexts. You will encounter it constantly when:

• Reading Financial Reports: It is a standard line item on a company's income statement (利润表, lìrùn biǎo).
• Watching Financial News: News anchors will frequently report on a company's quarterly or annual 净利润.
• Discussing Investments: Investors and analysts obsess over 净利润 and its growth rate (净利润增长率) when evaluating stocks.
• In Business Meetings: When discussing company performance, managers will refer to the 净利润 to measure success and set future goals.

It is almost never used in casual, everyday conversation unless the topic is specifically about business or personal investments.

• Example 1:
  • 去年我们公司的净利润增长了百分之二十。
  • Pinyin: Qùnián wǒmen gōngsī de jìng lì rùn zēngzhǎng le bǎi fēn zhī èrshí.
  • English: Last year, our company's net profit increased by 20 percent.
  • Analysis: A standard and very common way to report on company performance.
• Example 2:
  • 分析师预测，这家科技巨头的净利润将超出预期。
  • Pinyin: Fēnxīshī yùcè, zhè jiā kējì jùtóu de jìng lì rùn jiāng chāochū yùqī.
  • English: Analysts predict that this tech giant's net profit will exceed expectations.
  • Analysis: This sentence is typical of financial news reports or investment analyses.
• Example 3:
  • 我们需要区分毛利润和净利润这两个概念。
  • Pinyin: Wǒmen xūyào qūfēn máo lìrùn hé jìng lì rùn zhè liǎng ge gàiniàn.
  • English: We need to distinguish between the two concepts of gross profit and net profit.
  • Analysis: A key sentence for any business student, highlighting the importance of precision in financial terminology.
• Example 4:
  • 高昂的运营成本严重影响了他们的净利润。
  • Pinyin: Gāo'áng de yùnyíng chéngběn yánzhòng yǐngxiǎng le tāmen de jìng lì rùn.
  • English: High operating costs seriously affected their net profit.
  • Analysis: Shows the relationship between costs (成本) and net profit.
• Example 5:
  • 财报显示，第三季度的净利润为五亿元人民币。
  • Pinyin: Cáibào xiǎnshì, dì sān jìdù de jìng lì rùn wéi wǔ yì yuán Rénmínbì.
  • English: The financial report shows that the net profit for the third quarter was 500 million RMB.
  • Analysis: Demonstrates how the term is used with specific figures in official reports (财报).
• Example 6:
  • 虽然营业收入很高，但他们的净利润却很低。
  • Pinyin: Suīrán yíngyè shōurù hěn gāo, dàn tāmen de jìng lì rùn què hěn dī.
  • English: Although their revenue is high, their net profit is very low.
  • Analysis: This highlights the crucial difference between revenue (top line) and net profit (bottom line).
• Example 7:
  • 董事会的主要目标是提高股东的投资回报和公司的净利润。
  • Pinyin: Dǒngshìhuì de zhǔyào mùbiāo shì tígāo gǔdōng de tóuzī huíbào hé gōngsī de jìng lì rùn.
  • English: The main goal of the board of directors is to increase shareholder return on investment and the company's net profit.
  • Analysis: Connects net profit to the interests of shareholders (股东).
• Example 8:
  • 这家初创公司终于实现了净利润转正。
  • Pinyin: Zhè jiā chuàngyè gōngsī zhōngyú shíxiàn le jìng lì rùn zhuǎn zhèng.
  • English: This startup company has finally achieved a positive net profit (i.e., became profitable).
  • Analysis: “转正 (zhuǎn zhèng)” means to “turn positive,” a common milestone for new companies moving from loss to profit.
• Example 9:
  • 税收政策的变化可能会对我们未来的净利润产生影响。
  • Pinyin: Shuìshōu zhèngcè de biànhuà kěnéng huì duì wǒmen wèilái de jìng lì rùn chǎnshēng yǐngxiǎng.
  • English: Changes in tax policy may have an impact on our future net profit.
  • Analysis: Points out that external factors like taxes (税) are part of the net profit calculation.
• Example 10:
  • 在计算净利润时，你必须减去所有的费用，包括利息和税款。
  • Pinyin: Zài jìsuàn jìng lì rùn shí, nǐ bìxū jiǎnqù suǒyǒu de fèiyòng, bāokuò lìxī hé shuìkuǎn.
  • English: When calculating net profit, you must subtract all expenses, including interest and taxes.
  • Analysis: A clear, textbook-style explanation of how net profit is derived.

• 净利润 (jìng lì rùn) vs. 利润 (lìrùn): This is the most common pitfall. 利润 (lìrùn) is a general term for “profit” and can be ambiguous. It might refer to gross profit, operating profit, or net profit depending on the context. 净利润 is always specific: it's the final profit after all expenses. If you want to be precise, always use 净利润 for the bottom line.
• Mistaking Profit for Revenue: A beginner might confuse 净利润 (jìng lì rùn) with 营业收入 (yíngyè shōurù). Revenue is the total money a company brings in from sales (the “top line”). Net profit is what's left after subtracting all costs from revenue. A company can have billions in revenue but still have a negative net profit (a loss).
• Incorrect Personal Use: You cannot use 净利润 to describe your personal salary or savings.
  • Incorrect: 我上个月的净利润是五千块。 (Wǒ shàng ge yuè de jìng lì rùn shì wǔqiān kuài.)
  • Reason: 净利润 applies only to a formal business entity. An individual has 收入 (shōurù - income) or 结余 (jiéyú - surplus/savings).
  • Correct: 我上个月的税后收入是五千块。 (Wǒ shàng ge yuè de shuìhòu shōurù shì wǔqiān kuài. - My after-tax income last month was 5,000 yuan.)

• 利润 (lìrùn) - Profit. The general, sometimes ambiguous, term for profit.
• 毛利润 (máo lì rùn) - Gross Profit. The profit before deducting operating expenses, interest, and taxes. The direct counterpart to 净利润.
• 营业收入 (yíngyè shōurù) - Operating Revenue. The “top line” or total sales.
• 成本 (chéngběn) - Cost. The expenses incurred to create a product or service.
• 亏损 (kuīsǔn) - Loss / Deficit. The antonym of making a profit; a negative net profit.
• 财报 (cáibào) - Financial Report. The official document where a company discloses its 净利润.
• 股东 (gǔdōng) - Shareholder / Stockholder. The owners of a company who are most concerned with its profitability.
• 净利润率 (jìng lì rùn lǜ) - Net Profit Margin. A key ratio (Net Profit / Revenue) used to measure a company's profitability.
• 纯利 (chúnlì) - Pure Profit. A common synonym for 净利润, often used in Hong Kong, Taiwan, or slightly less formal business writing.
• 税后利润 (shuì hòu lì rùn) - After-Tax Profit. Another term that is often used interchangeably with 净利润.