Retained income refers to the internal accumulation extracted by enterprises from the profits realized over the years, which comes from the net profit realized by the production and operation activities of enterprises, including the surplus reserve fund and undistributed profits of enterprises, in which the surplus reserve fund is the accumulated surplus with a specific purpose and the undistributed profit is the accumulated surplus without a specific purpose.
Retained income is the profit created by the company during its operation, but it is not distributed to the owner and stays in the company due to the needs of the company's business development or legal reasons.