The income statement is an accounting statement that reflects the production and operation results of an enterprise during a certain accounting period (such as monthly, quarterly, semi-annual or annual). It comprehensively reveals the various incomes, various expenses, costs or expenses incurred by the company in a specific period, as well as the profits realized or losses incurred by the company. The calculation formula of the income statement is as follows:

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1. Operating profit = main business income - Main business costs - main business taxes and surcharges + other business income - other business expenses - operating expenses - administrative expenses - financial expenses 2. Total profit = operating profit + subsidy income + non-operating income - non-operating expenses 3. Net profit = total profit - income tax 4. Main business income - main business cost - main business taxes and surcharges = main business profit main business profit + other business profits - sales expenses - administrative expenses - financial expenses = operating profit operating profit + Investment income + Subsidy income + Non-operating income - Non-operating expenses = Total profit Total profit - Income tax expense = Net profit

5. If. Those with losses above are marked as "-".

Net profit = current year's profit in the general ledger,

Cumulative net profit + undistributed profit at the beginning of the year = the number of undistributed profits in the owner's equity in the balance sheet.

6. Operating income minus: operating costs, business taxes and additional operating expenses, management fees, financial expenses, asset impairment losses, plus: gains from changes in fair value (losses are listed with "-") investment income (losses are listed with "-") Fill in with “—”) 7. Operating profit (fill in with “—” for losses) Add: non-operating income minus: non-operating expenses 8. Total profit (fill in with “—” for losses) Less: net profit from income tax (Losses are listed with "-") Balance Sheet Items ITEM Monetary funds Cash Short term investments Notes receivable Dividend receivable Interest receivable Interest receivable Accounts receivable Other receivables Other receivables Accounts prepaid Future guarantee Allowance receivable Export drawback receivable Inventories Including: Raw materials Finished goods Prepaid and deferred expenses To be processed Net loss on current assets Unsettled G/L on current assets Long-term debenture investment falling due in a year Other current assets Total current assets Long-term investment: Long-term investment: Among them :Including long term equity investment Long term securities investment *Incorporating price difference Total long-term investment Fixed assets-cost Less: Accumulated depreciation Fixed assets -net value Less: Impairment of fixed assets Net value of fixed assets Disposal of fixed assets Project material Construction in Progress Unsettled net loss on fixed assets Unsettled G /L on fixed assets Total tangible assets Intangible assets Including: land use rights Including and use rights Deferred assets (long-term deferred expenses) Deferred assets Including: Fixed assets repair Including: Fixed assets repair Improvement expenditures on fixed assets expenditure of fixed assets Other long term assets Among it: Specially approved reserving materials Total intangible assets and other assets Deferred assets debits Total Assets Monetary funds Cash Short term investments Notes receivable Dividend receivable Interest receivable Accounts receivable Other receivables Accounts prepaid Future guarantee Allowance receivable Export drawbacks receivable Inventories Including: Raw materials Including: Raw materials Finished goods (inventory goods) Finished goods Prepaid and deferred expenses Net loss on pending current assets Unsettled G/L on current assets Long-term debt investment due within one year Long-term debenture investment falling due in a yaear Other current assets Total current assets Long-term investment: Long-term investment: Including: Long-term equity investment Long-term debt investment Long-term securities investment *Consolidated spread Incorporating price difference Total long-term investment Fixed assets-cost Less: Accumulated depreciation Less: Accumulated Dpreciation Fixed assets-net value Less: Impairment of fixed assets Less: Impairment of fixed assets Net fixed assets Net value of fixed assets Disposal of fixed assets Project material Construction in Progress Unsettled G/L on fixed assets Total tangible assets Intangible assets Among them: land use Including and use rights Deferred assets (long-term deferred expenses) Deferred assets Including: Fixed assets repair Improvement expenditure of fixed assets Other long term assets Among it: Specially approved reserve materials Among it :Specially approved reserving materials Total intangible assets and other assets Deferred assets debits Total Assets Short-term loans Notes payable Accounts payab1e Advances from customers Accrued payro1l Welfare payable Profits payab1e Taxes payable Other payable to government Other creditors Provision for expenses Accrued liabilities Due within one year Long term liabilities due within one year Other current liabilities Total current liabilities Long-term loans payable Bonds payable Long-term accounts payable Special accounts payable Other long-term liabilities long-term liabilities Including: Special reserve fund Total long term liabilities Deferred taxation credit Total liabilities *Minority interests Paid-in capital (equity) Subscribed Capital Country Capital National capital Collective capital Legal person's capital Legal person's capital Including: State-owned legal person's capital Collective legal person's capital Personal capital Foreign businessmen's capital Capital Capital surplus surplus reserve Including: statutory surplus reserve public welfare fund Supplementary current capital * Unaffirmed investment loss (listed with "-") Unaffirmed investment loss Unallocated Retained earnings Converted difference in Foreign Currency Statements Total shareholder's equity Total Liabilities&Equity Sales of products Including: Export sales Less: Sales discount Less: Sales discount and allowances Net sales of products Less: Sales tax Cost of sales Including: Cost of export sales Gross profit on product sales sales Less: Selling expenses General and administrative expenses Financial expenses Among them: Interest expenses (minus interest income) Including: Interest expenses (minus interest ihcome) Exchange losses (minus exchange gains) Profit on sales Add: profit from other operations Operating profit Add: Investment income Add: Income on investment Add: Non-operating income Add: Non-operating income Less: Non-operating expenses Less: Non- operating expenses Add: adjustment of loss and gain for previous years Total profit Less: income tax Less: Income tax Net profit