Introduction
At the end of January 2022, some listed automotive companies have released their 2021 performance forecasts. As of press time, the Automobile Society of China under the China Association of Automobile Manufacturers has tracked 17 listed companies in the vehicle category, including 6 passenger cars and 11 commercial vehicles.
Judging from the 2021 performance forecasts of major car companies, due to the decline in sales and the rise in raw material prices, commercial vehicle companies have suffered large-scale losses; passenger car companies are strong and strong, and weak people are weak, of which GAC and Great Wall continue to hang, and each of them is happy to mention about 7 billion yuan of profits.
It is worth noting that BAIC BJEV and BEIQI Foton, a subsidiary of BAIC Group, are at the bottom, with losses of up to about 5 billion yuan, of which BEIQI Foton is mainly dragged down by Borgward, while BAIC BJEV's ARCFOX Jihu brand spends up to 1.7 billion yuan on advertising and other expenses alone, which is lamentable.
✎ To point, speed, view
Passenger car companies (net profit in 2021 below)
➀ GAC Group: Profit of 6.6-7.6 billion yuan, an increase of 11%-27%
➁ Great Wall Motor: Profit of 6.782 billion yuan, an increase of 26.47%
➂ Haima Automobile: Profit of 80 million yuan - 120 million yuan, turning losses into profits
➃ Zotye Automobile: loss of 400-600 million yuan
➄ Xiaokang shares: loss of 1.55-1.95 billion yuan
➅ BAIC BJEV: Loss of 4.8-5.3 billion yuan
Commercial vehicle companies (net profit in 2021 below)
➀Jiangling Motors: Profit of 574 million yuan, an increase of 4.26%
➁Yutong Bus: Profit 566-666 million yuan, an increase of 10%-30%
➂Jinbei Automobile: Profit of 150-225 million yuan, turning losses into profits
➃ Yaxing Bus: Profit of 1.50-2.25 million yuan, turning losses into profits
➄ Hengtian Kaima: Loss of 146-175 million yuan
➅ Zhongtong Bus: loss of 174-231 million yuan
➆Ankai Bus: Loss of 240 million-295 million yuan
➇Sugon Automobile: Loss of 320-445 million yuan
(9) Xiamen Golden Dragon: loss of 590 million yuan
(10) Hanma Technology: Loss of 1.16-1.35 billion yuan
(11) Beiqi Foton: loss of 5.035 billion yuan
Passenger car companies
1
GAC Group: Net profit in 2021 is expected to be 6.6-7.6 billion yuan, an increase of 11%-27%
On January 11, 2022, Guangzhou Automobile Group Co., Ltd. (stock code 601238) released its 2021 annual performance forecast. According to the forecast, the company expects to achieve a net profit attributable to shareholders of listed companies of about 6.6 billion yuan to 7.6 billion yuan in 2021, an increase of about 11% to 27% compared with the same period last year. At the same time, net profit after deducting non-recurring gains and losses was approximately $5.6 billion to $6.7 billion, an increase of approximately 16% to 39% compared to the same period last year.
For the reasons for the change in performance in 2021, GAC Group said in the announcement that in 2021, the company made every effort to overcome the impact and challenges of chip shortages, rising raw material prices, repeated epidemics and other aspects, and achieved steady growth in production and sales throughout the year; at the same time, through product structure adjustment, strengthening cost control and other measures, it achieved a steady improvement in operating efficiency.
According to the data, in terms of production and sales, in 2021, the production and sales of GAC Group were 2.1381 million units and 2.1444 million units, respectively, an increase of 5.08% and 4.92% year-on-year.
2
Great Wall Motor: Net profit in 2021 was 6.782 billion yuan, an increase of 26.47%
On January 23, 2022, Great Wall Motor Co., Ltd. (stock code 601633) released its 2021 annual performance report. According to the express report, the company's net profit attributable to shareholders of listed companies in 2021 was 6.782 billion yuan, an increase of 26.47% over the same period last year. At the same time, the net profit after deducting non-recurring gains and losses was 4.289 billion yuan, an increase of 11.80% year-on-year.
As for the reasons for the change in performance in FY2021, Great Wall Motor said in the announcement that the main reason for the year-on-year increase in net profit attributable to the shareholders of the Company during the reporting period was due to the increase in vehicle sales. During the reporting period, Great Wall Motors firmly determined the transformation of global intelligent technology companies, concentrated on electrification, intelligent technology innovation and global development, deepened category innovation and user operation, and improved system strength and ecological construction. During the year, sales increased and model structure improved, which contributed to the increase in performance.
According to the data, in terms of production and sales, the production and sales of Great Wall Motor in 2021 were 1.2653 million units and 1.281 million units, respectively, an increase of 15.12% and 15.24% year-on-year, respectively.
3
Haima Automobile: The net profit in 2021 is expected to be 80 million yuan - 120 million yuan, turning losses into profits
On January 29, 2022, Haima Automobile Group Co., Ltd. (stock code 000572) released its 2021 annual performance forecast. According to the forecast, the net profit attributable to the shareholders of the listed company in 2021 is expected to make a profit of 80 million yuan to 120 million yuan, turning a loss into a profit. At the same time, the net profit after deducting non-recurring gains and losses is expected to be a loss of 430-470 million yuan, achieving loss reduction.
As for the reasons for the change in performance in 2021, Haima Automobile said in the announcement: 1.In 2021, the company's performance improved year-on-year, mainly due to the significant year-on-year increase in sales of new products Haima 7X and export products listed last year. Subsequently, in accordance with the established strategy, the company's brand image improvement, direct sales system construction, e-commerce channel optimization, full marketing and full service, overseas market development and opening up cooperation and other related work will continue to accelerate the landing. 2. In the same period of the previous year, the company conducted an impairment test on idle assets, discontinued models, backlog inventory, inventory vehicles, etc. and made a provision for large asset impairment losses, resulting in a large loss in the previous year. 3. During the reporting period, it is expected that the net profit of non-recurring gains and losses will be about 550 million yuan, mainly due to equity transfers, government subsidies and debt restructuring during the reporting period.
The data shows that in terms of production and sales, the production and sales of Haima Automobile in 2021 were 29,700 units and 29,500 units, respectively, an increase of 75.77% and 67.01% year-on-year.
4
Zotye Automobile: 2021 net profit is expected to lose 400-600 million yuan, reducing losses
On January 26, 2022, Zotye Automobile Co., Ltd. (stock code 000980) released its 2021 annual performance forecast. The forecast shows that the net profit attributable to shareholders of listed companies in 2021 is expected to lose 400-600 million yuan. At the same time, the net profit after non-recurring gains and losses is expected to be a loss of 2.4-3.6 billion yuan.
For the reasons for the 2021 annual performance loss, Zotye Automobile said in the announcement: The company has completed the reorganization in 2021, the reorganization plan has been implemented, and it is expected to generate restructuring income of 2.0-2.4 billion yuan. However, due to the company's subordinate automobile production bases are basically in a state of suspension, the company's main product automobile production and sales are not large, and the total sales revenue is low, so the company's operating performance in 2021 is still a loss. At the same time, the company's main business, the automobile business, is in a state of suspension, and the company intends to make a large amount of asset impairment provisions and bad debt provisions totaling about 1.3 billion yuan to 1.9 billion yuan, so the company's overall performance loss in 2021.
5
Xiaokang shares: 2021 net profit is expected to lose 1.55-1.95 billion yuan
On January 29, 2022, Chongqing Xiaokang Industrial Group Co., Ltd. (stock code 601127) released its 2021 annual performance forecast. The forecast shows that the net profit attributable to the shareholders of the listed company in 2021 is expected to lose 1.55-1.95 billion yuan. At the same time, the net profit after deducting non-recurring gains and losses is expected to lose 2.51-2.91 billion yuan, and the loss is expanded.
In the explanation of the main reasons for the pre-loss of performance in this period, Xiaokang shares said: (1) The impact of the main business: 1. The new energy vehicle business sector of Xilisi: Although the sales volume of new energy vehicles in 2021 increased compared with the same period of the previous year, sales were still in the climbing stage, the amortization of fixed assets and intangible assets increased, and the continuous increase in research and development investment, labor costs, and marketing channel construction costs led to the impact of the business segment on the net profit attributable to the shareholders of the listed company of about -1.4 billion yuan. 2. Traditional automobile business segment: In 2021, the traditional fuel vehicle industry as a whole showed a downward trend, and the sales volume of traditional fuel vehicles decreased compared with the previous year; at the same time, due to the increase in raw material prices and the product sales structure, the gross profit margin of a single unit declined, and the business segment affected the net profit attributable to the shareholders of listed companies of about -350 million yuan. (2) Impact of non-operating gains and losses: The company's non-recurring gains and losses in 2021 were mainly gains and losses on the disposal of non-current assets, government subsidies, ELMS's common stock issued to SF MOTORS and fair value change gains and losses, which increased by about 400 million yuan over the same period of the previous year.
According to the data, in terms of production and sales, the production and sales of Xiaokang shares in 2021 were 277,200 units and 266,600 units, down 0.25% and 2.55% year-on-year, respectively.
6
BAIC BJEV: Net profit in 2021 is expected to lose 4.8-5.3 billion yuan, reducing losses
On January 29, 2022, Beiqi Blue Valley New Energy Technology Co., Ltd. (stock code 600733) released its 2021 annual performance forecast. The forecast shows that the net profit attributable to shareholders of listed companies in 2021 is expected to lose 4.8-5.3 billion yuan. At the same time, the net profit loss after deducting non-recurring gains and losses was 5-5.5 billion yuan.
In the explanation of the main reasons for the pre-loss of the performance in the current period, BAIC BJEV said: (1) Due to the impact of the new crown pneumonia epidemic and the supply of raw materials, the company's production and sales volume did not meet expectations, and the existing gross profit could not cover the inherent costs and expenses, and the impact on the company's performance was about 2-2.5 billion yuan. (2) In order to realize the transformation of products to high-end, fully promote the brand promotion and channel construction of ARCFOX Jihu, the company increased brand communication efforts, advertising and operation and other sales expenses increased, the impact on the company's performance was about 1.7 billion yuan. (3) The company continues to build independent technical capabilities, increase investment in research and development, and the impact of research and development expenses on the company's performance is about 1.1 billion yuan.
According to the data, in terms of production and sales, the production and sales of BAIC BJEV in 2021 were 6369 units and 26,100 units, respectively, down 51.84% and 0.82% year-on-year, respectively.
Commercial vehicle companies
Jiangling Motors: Net profit expected to be 574 million yuan in 2021, an increase of 4.26%
On January 25, 2022, Jiangling Motors Co., Ltd. (stock code 000550) released its 2021 annual performance report. According to the express report, the net profit attributable to shareholders of listed companies in 2021 is expected to be 574 million yuan, an increase of 4.26% year-on-year. At the same time, the net profit after deducting non-recurring gains and losses was 29.6288 million yuan, down 92.69% year-on-year.
In a statement of operating results and financial position, Jiangling Motors said that in 2021, the company sold 341,008 complete vehicles, including 101,516 light buses, 118,105 trucks, 67,906 pickup trucks, and 53,481 SUVs. Total sales increased by 2.99% year-on-year. In 2021, the company's total profit and net profit increased by 23.21% and 4.26% respectively over the same period of the previous year, mainly due to the increase in sales volume, the continuous promotion of cost reduction and efficiency increase, and the profit growth brought by government subsidies, partially offset by the rise in the price of raw materials such as steel and precious metals, and the increase in chip purchase costs caused by the shortage of automotive chips. The Company's net profit after deducting non-recurring gains and losses in 2021 decreased by 92.69% compared with the same period of the previous year, mainly due to the impact of gains and losses on the disposal of non-current assets, government subsidies included in the profit or loss of the current period, and changes in investment income from the disposal of related financial assets.
According to the data, in terms of production and sales, the production and sales of Jiangling Motors in 2021 were 339,600 units and 341,000 units, respectively, an increase of 0.99% and 2.99% year-on-year.
Yutong Bus: Net profit in 2021 is expected to be 566-666 million yuan, an increase of 10%-30%
On January 7, 2022, Zhengzhou Yutong Bus Co., Ltd. (stock code 600066) released its 2021 annual performance forecast. According to the forecast, the net profit attributable to shareholders of listed companies in 2021 is expected to be 566-666 million yuan, an increase of 10% to 30% year-on-year. At the same time, the net profit after deducting non-recurring gains and losses is expected to make a profit of 175 million to 215 million yuan, turning a loss into a profit.
In the explanation of the main reasons for the pre-increase in the performance of this period, Yutong Bus said: (1) The demand for overseas buses has gradually recovered, and the company's overseas export business has increased; at the same time, with the promotion of new energy in the overseas bus market, the company's export sales structure has improved and its performance contribution has increased. (2) The impact of the delivery of the company's employee housing projects.
According to the data, in terms of production and sales, the production and sales of Yutong buses in 2021 were 42,100 units and 41,800 units, respectively, a slight increase of 0.20% and 0.17% year-on-year, respectively.
Jinbei Automobile: The net profit in 2021 is expected to be 150-225 million yuan, turning losses into profits
On January 19, 2022, Jinbei Automobile Co., Ltd. (stock code 600609) released its 2021 annual performance forecast. The forecast shows that the net profit attributable to the shareholders of the listed company in 2021 is expected to be 150-225 million yuan, achieving a turnaround. At the same time, the net profit after deducting non-recurring gains and losses is expected to be 175-250 million yuan, an increase of 2170% to 3142% year-on-year.
For the main reasons for the pre-profit of the 2021 annual performance, Jinbei Automobile said in the announcement that the main reason is: in 2020, the company made a large amount of impairment due to the bankruptcy and reorganization of Brilliance Automobile Group Holdings Co., Ltd., the relevant impairment of Brilliance Group has basically been accrued in 2020, and the relevant impairment of the company and Brilliance Group in 2021 only accrued interest and penalty interest related to the guarantee liability, and the amount of impairment was significantly reduced year-on-year.
Yaxing Bus: The net profit in 2021 is expected to be 1.50-2.25 million yuan, turning losses into profits
On January 27, 2022, Yangzhou Yaxing Bus Co., Ltd. (stock code 600213) released its 2021 annual performance forecast. The forecast shows that the net profit attributable to the shareholders of the listed company in 2021 is expected to be 1.5-2.25 million yuan, achieving a turnaround. At the same time, the net profit loss after deducting non-recurring gains and losses was 166-169 million yuan.
In the explanation of the main reasons for the pre-profit of the performance in this period, Yaxing Bus said: The company's performance pre-profit is mainly due to the non-recurring profit and loss of government subsidies, and the impact amount is 161.15 million yuan, of which the subsidy for helping enterprises to develop is 150 million yuan (the company has disclosed the "Announcement of Yangzhou Yaxing Bus Co., Ltd. on Receiving Government Subsidies and National New Energy Vehicle Promotion Subsidies" on December 28, 2021), which is specially used for industrial development and enterprise development subsidies in 2021 Other subsidies of 11.15 million yuan.
The data shows that in terms of production and sales, the production and sales of Yaxing buses in 2021 were 1971 and 2023 units, down 35.04% and 32.97% respectively year-on-year.
Hengtian Kaima: Net profit in 2021 is expected to lose 146-175 million yuan, down 995.16% -1172.96%
On January 27, 2022, Hengtian Kaima Co., Ltd. (stock code 900953) released its 2021 annual performance forecast. The forecast shows that the net profit attributable to shareholders of listed companies in 2021 is expected to lose 146-175 million yuan, down 995.16% to 1172.96% year-on-year. At the same time, the net profit loss after deducting non-recurring gains and losses was 236-265 million yuan, and the loss widened.
Among the main reasons for the pre-loss of performance in this period, Hengtian Kaima said that (1) the impact of the main business: 1. During the reporting period, due to the upgrading of environmental protection emission standards to national VI. chip shortages and other factors, the growth of the commercial vehicle market was weak, the company vigorously promoted product upgrading, deepened industrial chain supporting cooperation, strengthened the construction of marketing channels, maintained market stability, and the annual production and sales volume rose steadily, but due to the sharp increase in raw material prices, the procurement cost increased, and the comprehensive gross profit margin level of products declined. 2. Focus on the core main business, promote slimming and fitness, subsidiary Nanchang Kaima Co., Ltd. implemented personnel diversion and placement, and incurred large dismissal welfare expenditures. 3. Based on the principle of prudence, for the receivables of the new energy vehicle business with a greater risk of recovery, a large amount of credit impairment provision is made according to the single determination. (2) Impact of non-recurring gains and losses: The non-recurring profit and loss attributable to the shareholders of listed companies in 2021 is expected to be about 90 million yuan, a significant decrease from the same period of the previous year, mainly to reduce the income from the disposal of non-current assets.
Zhongtong Bus: Net profit in 2021 is expected to lose 174-231 million yuan, down 839.68% -1081.99%
On January 29, 2022, Zhongtong Bus Co., Ltd. (stock code 000957) released its 2021 annual performance forecast. The forecast shows that the net profit attributable to the shareholders of the listed company in 2021 is expected to lose 174-231 million yuan, down 839.68% to 1081.99% year-on-year. At the same time, the net profit after non-recurring gains and losses is expected to be a loss of 224-296 million yuan.
In the explanation of the reasons for the change in performance, Zhongtong Bus said that the bus industry continued to decline, competition intensified, raw material prices continued to rise, and profitability decreased, resulting in a sharp decline in the company's operating performance in 2021.
The data shows that in terms of production and sales, the production and sales of Zhongtong buses in 2021 were 10,200 units and 10,000 units, respectively, a slight decrease of 0.08% and 3.99% year-on-year, respectively.
7
Ankai Bus: Net profit in 2021 is expected to lose 240-295 million yuan, down 341.01% -396.24%
On January 29, 2022, Anhui Ankai Automobile Co., Ltd. (stock code 000868) released its 2021 annual performance forecast. The forecast shows that the net profit attributable to shareholders of listed companies in 2021 is expected to lose 240-295 million yuan, down 341.01% to 396.24% year-on-year. At the same time, the net profit after deducting non-recurring gains and losses is expected to be a loss of 280-350 million yuan, achieving loss reduction.
As for the reasons for the change in performance in 2021, Ankai Bus said that the company's product sales scale declined, and the operating income did not meet expectations; the change in the sales product structure and the rise in raw material prices led to a decline in the comprehensive gross profit margin of the product.
The data shows that in terms of production and sales, the production and sales of Ankai buses in 2021 were 3782 and 3833 vehicles, down 30.88% and 31.61% year-on-year, respectively.
8
Shuguang Automobile: Net profit in 2021 is expected to lose 320-445 million yuan, down 683.06% -910.81%
On January 28, 2022, Liaoning Shuguang Automobile Group Co., Ltd. (stock code 600303) released its 2021 annual performance forecast. According to the forecast, it is expected that the net profit attributable to the shareholders of the listed company in 2021 is expected to be a loss of 320-445 million yuan, down 683.06% -910.81% year-on-year. At the same time, the net profit after deducting non-recurring gains and losses is expected to be a loss of 370-495 million yuan, and the loss is expanded.
For the main reasons for the pre-loss of 2021 annual performance, Sugon Automobile said in the announcement: (1) The main business affects the company's main vehicle and axle and other sector businesses, of which the vehicle business involves buses, pickup trucks, etc. belong to the segment of the automobile industry, affected by the new crown pneumonia epidemic and raw material price increases and other factors, the company's production and sales volume did not meet expectations, especially the proportion of bus and pickup truck sales is sluggish, so that the existing gross profit can not cover the inherent costs, resulting in losses. (2) The impact of non-operating gains and losses The non-operating gains and losses for the current period are expected to decrease by 320 million yuan to 360 million yuan year-on-year, mainly due to the year-on-year decrease in the income from the disposal of assets in the current period, resulting in a year-on-year decrease in the impact of non-operating gains and losses on net profit in the current period.
The data shows that in terms of production and sales, the production and sales of Shuguang Automobile in 2021 were 4752 and 5812 units, down 42.34% and 10.02% year-on-year, respectively.
9
Xiamen Golden Dragon: Net profit in 2021 is expected to lose 590 million yuan, down 1949.51%
On January 29, 2022, Xiamen Jinlong Automobile Group Co., Ltd. (stock code 600686) released its 2021 annual performance forecast. The forecast shows that the net profit attributable to the shareholders of the listed company in 2021 is expected to lose 590 million yuan, down 1949.51% year-on-year. At the same time, the net profit after deducting non-recurring gains and losses was 730 million yuan, and the loss widened.
In the explanation of the main reasons for the pre-loss of the performance in the current period, Xiamen Golden Dragon said: During the reporting period, the company's comprehensive gross profit margin decreased compared with the same period last year, affected by the epidemic, the domestic and foreign market demand in the bus industry decreased, the market competition was fierce, and it was affected by the changes in the company's bus product structure, the appreciation of the renminbi, and the rise in raw material prices.
According to the data, in terms of production and sales, the production and sales of Xiamen Golden Dragon in 2021 were 53,000 units and 50,700 units, respectively, an increase of 21.00% and 16.30% year-on-year.
10
Hanma Technology: The net profit in 2021 is expected to lose 1.16-1.35 billion yuan, and the loss expands
On January 29, 2022, Hanma Technology Group Co., Ltd. (formerly Valin Singma Automobile Co., Ltd.) (stock code 600375) released its 2021 annual performance forecast. The forecast shows that the net profit attributable to the shareholders of the listed company in 2021 is expected to lose 1.16-1.35 billion yuan, and the loss is expanded. At the same time, the net profit loss after deducting non-recurring gains and losses was 1.23-1.42 billion yuan, and the loss widened.
In the explanation of the main reasons for the pre-loss of performance in this period, Hanma Technology said: (1) During the reporting period, the competition in the domestic heavy truck and special vehicle industry further intensified, from July 1, 2021, the national emission standards for heavy-duty diesel vehicles were fully implemented nationwide, and the production and sale of heavy-duty diesel vehicles that did not meet the national six emission standards were prohibited, so the company increased the promotion of national five vehicles in the second quarter of 2021, the market price of the company's products continued to decrease, and at the same time, the price of major raw materials such as steel rose during the reporting period. As a result, the profit of the company's main business decreased. (2) In view of the full implementation of the National VI emission standards for heavy-duty diesel vehicles nationwide since July 1, 2021, the Company made an impairment loss on the corresponding China V finished vehicles and related parts during the reporting period in accordance with the principle of prudence, and made an impairment provision for the corresponding long-term assets. (3) During the reporting period, the market demand in the domestic heavy-duty truck and special vehicle industry was sluggish, and the company's sales volume of medium- and heavy-duty trucks fell by 21.89% year-on-year, resulting in a decrease in the company's main business profit.
The data shows that in terms of production and sales, the production and sales of Hanma Technology in 2021 were 12,300 vehicles and 13,800 units, down 31.11% and 21.89% respectively year-on-year.
11
Beiqi Foton: Net profit in 2021 is expected to lose 5.035 billion yuan, down 3348.39%
On January 29, 2022, Beiqi Foton Motor Co., Ltd. (stock code 600166) released its 2021 annual performance forecast. The forecast shows that the net profit attributable to shareholders of listed companies in 2021 is expected to be a loss of 5.035 billion yuan, down 3348.39% year-on-year. At the same time, the net profit after deducting non-recurring gains and losses is expected to be a loss of 5.552 billion yuan, and the loss is expanded.
As for the main reasons for the pre-loss of the 2021 annual performance, Beiqi Foton said in the announcement that the company's pre-loss in this performance is mainly due to the impact of the impairment of related matters of Beijing Borgward Automobile Co., Ltd. in the current period. Including: the balance and interest of Beijing Borgward's equity transfer of 1.671 billion yuan, the impairment of about 995 million yuan in the reporting period, the cumulative impairment of about 1.650 billion yuan; the borrowing and interest of Beijing Borgward shareholders of 1.873 billion yuan, the impairment of about 1.387 billion yuan in the reporting period, the cumulative impairment of about 1.813 billion yuan; the current arrears of Beijing Borgward 1.485 billion yuan, the impairment of about 1.014 billion yuan in the reporting period, the cumulative impairment of about 1.342 billion yuan; the long-term equity investment of 534 million yuan, the full impairment of the reporting period, and the recovery of Borgward vehicle assets of 1.456 billion yuan After considering the recoverable value, an impairment of about 774 million yuan is accrued; the total profit affected by the above impairment is expected to be about -4.704 billion yuan. In addition, considering that the company's total profit from the recognition of investment income due to the holding of Beijing Borgward's equity is expected to be -5.326 billion yuan. After deducting the impact of the factors related to the above-mentioned Borgward matters, the company's total profit in 2021 is about 355 million yuan. The company judged that Beijing Borgward no longer had the ability to continue to operate, and there were significant uncertainties in the return of returns.
According to the data, in terms of production and sales, the production and sales of Beiqi Foton in 2021 were 622,400 units and 650,000 units, down 10.60% and 4.43% respectively year-on-year.
Explanation of terms
"Non-recurring profit or loss" refers to the income and expenses incurred by the company that are not directly related to the operating business, and although related to the operating business, but due to their nature, amount or frequency, affect the true and fair reflection of the normal profitability of the company.
"Net profit after deducting non-recurring gains and losses", that is, indicators that can simply reflect the operating performance of the enterprise, exclude factors such as capital premium, and only look at the level of operating profits, so as to correctly judge the quality of operating performance.