Gross profit margin refers to the balance of product quotation after deducting pure product production cost and tax, in which product production cost includes raw materials, wages and product cost (production and manufacturing cost refers to the cost paid by the production workshop for manufacturing, including wages, raw materials and their utilities and depreciation expenses, among which wages, materials and utilities should be evenly distributed to actual goods). For tax, it refers to the tax recorded in the operating tax payable, which is beyond the control of the company.
Total profit refers to the gross profit margin after deducting costs (period expenses, sales expenses and operating expenses), plus the account balance of long-term investment, asset impairment reserve, etc. , reflecting the company's performance appraisal after comprehensive consideration of production, manufacturing and operation. Total assets are the balance of total profits plus other business income minus non-business income. Other business income (expenses) reflects business activities outside the income statement (such as penalties, fines, state subsidies, disposal of fixed assets, etc.), which are random.
Net profit is the balance of total assets after deducting enterprise income tax. Gross profit margin and net profit of different industries vary greatly. For example, the gross profit margin of pure grain, wine and biotechnology listed companies such as Maotai and Shutaishen is very high and simple. The cost of a bottle of wine and a pill is extremely low relative to their market prices, but for industrial enterprises such as coal and steel, the daily equipment depreciation expenses and operating costs are there, and the total cost is very high. This is also the difference in gross profit margin.