The realized profits left by state-owned enterprises in China for enterprises to use in accordance with state regulations. This part of the profits reserved for the use of enterprises forms three special funds: production development fund, employee welfare fund and employee incentive fund. The principle of profit retention is to give consideration to the interests of the state, enterprises and employees; It is of great significance to directly link enterprise income and employee welfare with enterprise management quality and profit, and to mobilize the enthusiasm of enterprises and employees. The enterprise profit retention fund shall be extracted, managed and used respectively according to the retention ratio of the approved production development fund, employee welfare fund and employee incentive fund. The retained profits extracted by the enterprise from the increased profits shall not be less than 60% for the development of production, and shall not exceed 40% for employee welfare and employee bonus.