Constitutionally speaking, gross profit is the difference between income and operating costs, but in fact this understanding confuses the concept of gross profit margin. In fact, the gross profit margin reflects the increased value of a commodity after its production is transformed into an internal system. In other words, the more value added, the more gross profit. For example, through the differentiated design of R&D, the product has added some functions compared with competitors, and the marginal price increase is positive, so the gross profit has also increased.