Some formulas and definitions

Gross profit margin = (main business income-main business cost)/main business income x 100%;

Main business profit margin = main business profit/main business income * 100%;
Main business profit = main business income-main business cost-main business tax and additional.

The price-to-earnings ratio is the ratio of a stock price to earnings per share. (Price-to-earnings ratio = market price per share of ordinary shares (annual earnings per share of ordinary shares) the numerator in the above formula is the current market price per share. The denominator can be used for profit in the last year, and can also be used for profit prediction in the next year or several years. Price-to-earnings ratio is one of the most basic and important indicators to estimate the value of common stock. It is generally considered that this ratio is normal between 20 and 30. If it is too small, it indicates that the stock price is low, the risk is small, and it is worth buying. If it is too large, it indicates that the stock price is high and the risk is high. You should be cautious when buying it. However, most of the high price-to-earnings shares are hot stocks, and the low price-to-earnings shares may be cold stocks.

Stock Dividend: the company gives the stock to the shareholders free of charge each year. The bonus is presented in the form of stock, which is called sending the red stock.

Cash Dividend: The company distributes dividends to shareholders in cash.

Stock allocation: The company allocates a certain amount of shares to the shareholders in order to absorb the funds.

Interest-removing and permission-removing: dividends are distributed in the form of cash dividends, which means interest-removing for stocks. When a stock dividend is issued, the right of stock allotment or stock-sending in the transaction is removed.

Filling: The filling means that the price of the stock increases after the permission is revoked until the pre-permission is obtained.

Warrants: when the company pays dividends, it uses the method of sending shares with allotment. However, the original shareholder does not want to accept the allotment right any more and sell the allotment right in the secondary market, A basis. For example, "golden cup" in Shanghai Stock Exchange and "Baoan" in Shenzhen Stock Exchange have warrants.