lìrùn: 利润 - Profit, Earnings

• Keywords: lirun, 利润, profit in Chinese, how to say profit in Chinese, Chinese word for earnings, business Chinese, Chinese accounting terms, company profit, HSK 5 vocabulary, net profit in Chinese, gross profit in Chinese.
• Summary: Discover the meaning of 利润 (lìrùn), the essential Chinese word for “profit.” This comprehensive guide is perfect for students of business Chinese or anyone learning about China's economy. We'll break down the characters 利 and 润, explore the cultural significance of profit in modern China, and provide over 10 practical example sentences. Learn to distinguish 利润 (lìrùn) from similar terms and use it accurately in business and financial contexts.

• Pinyin (with tone marks): lìrùn
• Part of Speech: Noun
• HSK Level: HSK 5
• Concise Definition: The financial gain from a business or commercial activity after subtracting all costs.
• In a Nutshell: 利润 (lìrùn) is the standard, formal term for “profit” in the worlds of business, finance, and economics. It's not the casual word for “making money” (that's 赚钱 - zhuànqián), but rather the specific accounting term for what's left after all expenses are paid. Think of it as the bottom line on a company's financial statement.

• 利 (lì): This character means “benefit,” “advantage,” or “gain.” It's composed of 禾 (hé), meaning “grain,” and 刀 (dāo), meaning “knife.” Originally, it depicted a sharp knife harvesting grain, symbolizing a successful and beneficial harvest. In 利润, it represents the financial gain or advantage obtained.
• 润 (rùn): This character means “to moisten,” “to lubricate,” or “to enrich.” The water radical (氵) on the left suggests nourishment and flow. In this context, it carries the meaning of “enrichment” or a “bonus” that smooths the way for the business.
• When combined, 利润 (lìrùn) literally means “beneficial enrichment” or “advantageous gain.” The two characters work together to create a formal and precise term for the financial surplus that nourishes a company.

While 利润 (lìrùn) is a modern business term, the concept of profit has a complex history in China. Traditionally, Confucian society placed merchants and the pursuit of profit at the bottom of the social hierarchy, valuing scholars and farmers more highly. However, since the economic reforms of the late 20th century (改革开放 - gǎigé kāifàng), the pursuit of 利润 (lìrùn) has become a central and celebrated driver of China's “economic miracle.” The term is now a symbol of success, efficiency, and modernization. Unlike the Western concept of profit, which is often viewed through a purely individualistic or shareholder-centric lens, in China, 利润 can have a broader, more collective connotation, especially concerning state-owned enterprises (国企 - guóqǐ). For these companies, generating 利润 is not just about enriching shareholders but also about contributing to national goals, social stability, and state power. The success of a company, measured by its 利润, is often a source of national and local pride.

利润 (lìrùn) is used almost exclusively in formal business, financial, and economic contexts. You will hear it constantly in company meetings, see it in financial news reports, and read it in business articles.

• Formality: Highly formal. You would not use it to talk about your personal salary or the money you won in a game. For that, you would use 赚钱 (zhuànqián) - “to make money.”
• Connotation: Neutral to positive. A high 利润 is a sign of a healthy, successful company. A lack of 利润 (or a 亏损 - kuīsǔn, “loss”) is a serious problem.

• Example 1:
  • 我们公司去年的利润增长了百分之二十。
  • Pinyin: Wǒmen gōngsī qùnián de lìrùn zēngzhǎngle bǎifēnzhī èrshí.
  • English: Our company's profit grew by 20% last year.
  • Analysis: A standard and common sentence used in a business report or meeting to discuss annual performance.
• Example 2:
  • 扣除所有成本后，我们的净利润是多少？
  • Pinyin: Kòuchú suǒyǒu chéngběn hòu, wǒmen de jìng lìrùn shì duōshǎo?
  • English: After deducting all costs, what is our net profit?
  • Analysis: This sentence introduces a key related term, 净利润 (jìng lìrùn - net profit), showing how 利润 is often modified to be more specific.
• Example 3:
  • 这家初创公司终于开始实现利润了。
  • Pinyin: Zhè jiā chuàngyè gōngsī zhōngyú kāishǐ shíxiàn lìrùn le.
  • English: This startup company has finally started to realize a profit.
  • Analysis: The verb 实现 (shíxiàn - to realize, to achieve) is frequently paired with 利润.
• Example 4:
  • 他们的商业模式利润率非常高。
  • Pinyin: Tāmen de shāngyè móshì lìrùnlǜ fēicháng gāo.
  • English: Their business model's profit margin is very high.
  • Analysis: Shows the use of the compound word 利润率 (lìrùnlǜ - profit margin), a critical business metric.
• Example 5:
  • 我们的主要目标是利润最大化。
  • Pinyin: Wǒmen de zhǔyào mùbiāo shì lìrùn zuìdàhuà.
  • English: Our main objective is to maximize profit.
  • Analysis: 最大化 (zuìdàhuà - to maximize) is another common verb used with 利润 in strategic business discussions.
• Example 6:
  • 由于竞争激烈，这家商店的利润空间很小。
  • Pinyin: Yóuyú jìngzhēng jīliè, zhè jiā shāngdiàn de lìrùn kōngjiān hěn xiǎo.
  • English: Due to fierce competition, this store's profit margin (lit. profit space) is very small.
  • Analysis: 利润空间 (lìrùn kōngjiān) is a slightly more descriptive way to say “profit margin” or “room for profit.”
• Example 7:
  • 如果没有利润，公司就无法生存。
  • Pinyin: Rúguǒ méiyǒu lìrùn, gōngsī jiù wúfǎ shēngcún.
  • English: If there is no profit, a company cannot survive.
  • Analysis: A simple but powerful sentence illustrating the fundamental importance of 利润.
• Example 8:
  • 公司决定将一部分利润用于研发。
  • Pinyin: Gōngsī juédìng jiāng yībùfèn lìrùn yòngyú yánfā.
  • English: The company decided to use a portion of the profits for R&D (research and development).
  • Analysis: Demonstrates how 利润 is treated as a tangible asset that can be allocated.
• Example 9:
  • 我们需要区分毛利润和净利润。
  • Pinyin: Wǒmen xūyào qūfēn máo lìrùn hé jìng lìrùn.
  • English: We need to distinguish between gross profit and net profit.
  • Analysis: Introduces another essential accounting term, 毛利润 (máo lìrùn - gross profit).
• Example 10:
  • 增加销售额并不总能保证更高的利润。
  • Pinyin: Zēngjiā xiāoshòu'é bìng bù zǒng néng bǎozhèng gèng gāo de lìrùn.
  • English: Increasing sales revenue doesn't always guarantee higher profits.
  • Analysis: This sentence highlights the crucial business concept that revenue is not the same as profit.

The most common mistake for English speakers is confusing 利润 (lìrùn) with 赚钱 (zhuànqián).

• 利润 (lìrùn): A formal noun for profit (Revenue - Costs). It belongs to a company or a business entity.
• 赚钱 (zhuànqián): A verb-object phrase meaning “to make money” or “to earn money.” It's used for both individuals and companies in a more general, colloquial sense.

Incorrect Usage:

• `我上个月的利润很高。` (Wǒ shàng gè yuè de lìrùn hěn gāo.)
• Why it's wrong: An individual receives a salary (工资 - gōngzī) or income (收入 - shōurù), not a “profit” from their job. You are not a company.

Correct Usage:

• `我上个月赚了很多钱。` (Wǒ shàng gè yuè zhuànle hěn duō qián.) - “I made a lot of money last month.” (Colloquial)
• `我上个月的工资很高。` (Wǒ shàng gè yuè de gōngzī hěn gāo.) - “My salary last month was very high.” (Specific)
• `我的公司上个月的利润很高。` (Wǒ de gōngsī shàng gè yuè de lìrùn hěn gāo.) - “My company's profit was very high last month.” (Correct use of 利润)

• 赚钱 (zhuànqián) - To make money. The general, colloquial counterpart to the formal concept of generating profit.
• 盈利 (yínglì) - To make a profit (verb); Profit (noun). A very close synonym of 利润 and often used interchangeably, though 盈利 can also function as a verb.
• 亏损 (kuīsǔn) - Loss, deficit. The direct antonym of 利润. A company that is not making a profit is experiencing a 亏损.
• 成本 (chéngběn) - Cost. The expenses that must be subtracted from revenue to calculate 利润.
• 收益 (shōuyì) - Earnings, income, revenue. A broader term than 利润. It can refer to total revenue before costs are deducted, or income from investments.
• 收入 (shōurù) - Income, revenue. Refers to all the money coming in, for either a person (salary, wages) or a company (revenue).
• 净利润 (jìng lìrùn) - Net profit. “The bottom line,” profit after *all* expenses, taxes, and interest are paid.
• 毛利润 (máo lìrùn) - Gross profit. Profit after subtracting the cost of goods sold (COGS), but before subtracting overhead, payroll, taxes, etc.
• 利润率 (lìrùnlǜ) - Profit margin. A percentage showing how profitable a company's activities are, calculated as `(利润 / 收入) * 100`.