It’s been nearly 4 years since I first wondered how an income statement is supposed to look in Chinese, and today I think I basically have that answer – the short version of it anyway. Perhaps I’m just an operations guy at heart, but I’ve always been more attentive to the Income Statement than to the Balance Sheet. Granted there are ways to work the numbers on both sides – Enron for example took liberties with the Balance Sheet to make the Income Statement look good. Generally speaking though, if the Income Statement is good, then it will eventually show up on the Balance Sheet.

The Baidu Encyclopedia has a nice Income Statement article you can check out - much better than the Chinese Wikipedia Income Statement page.

Revenues 销售收入 xiāoshòu shōurù
- COGS 成本 （chéngběn）
- Returns 退货 （tuìhuò）
= Gross Profit 毛利 （máolì） （Gross Margin 毛利率 máolìlǜ）
- G&A 行政 （xíngzhèng）
- S&D 营销 （yíngxiāo）
- R&D 研发 （yánfā）
- Other 其他 （qítā）
= Operating Profit (EBIT) （纯利） chúnlì
- Interest （利息） lìxī
- Taxes （税） shuì
= Net Income （净利） jìnglì