For the annual financial statements, the cumulative amount of the current year is the amount incurred from January to December of the current year, and the cumulative amount of the previous year is the amount incurred from January to December of the previous year. The details are as follows:

1. The cumulative amount reflects the concept of a period, which is different from the closing balance that reflects the concept of a point in time. Balance sheet with the concept of point in time, that is, the closing balance, the beginning of the balance; income statement, cash flow statement with the concept of the period, that is, the cumulative amount of the current year, the cumulative amount of the previous year;

2, the cumulative amount of the current year and the cumulative amount of the previous period does not have a direct relationship between the equation, but there is an intrinsic link. If the company's size does not change much, the production capacity is basically saturated, then the level of operating income this year's cumulative amount and the previous year's cumulative amount should be about the same. Gross margins are relatively stable when operating costs change with operating income year-on-year. Similarly, selling expenses, administrative expenses Finance costs as a percentage of revenue also remain within a stable range;