1.

Findings
As shown in table 1, this year the company’s profit doubled over last year, a dramatic increase
from RMB 33 million to RMB 67. This profit resulted largely from a reduction of RMB 27 million
in expenditure, achieved because of three factors:
 the lower cost of raw materials
 new technology in production and distribution
 less marketing cost
As to the sales, although the home market saw a decrease of 8 million, international sales
more or less compensated for this fall. In 2020, the overseas sales amounted to 92 million, an
increase of 19% over the previous year. It is thought that sales in the home market had been poor
because of the pandemic.

2.
Findings
As shown in table 1, this year the company’s profit doubled over the previous year, a dramatic
increase from RMB 33 million to RMB 67. This profit resulted from two reasons:
 expenditure reduction
A reduction of RMB 27 million in expenditure was achieved because of three factors:
 lower cost of raw materials
 more efficient methods of production and distribution
 less marketing cost
 overseas sales increase
In 2020, the overseas sales amounted to 92 million, an increase of 19% over the previous year
as a result of the soared sales in smartphone business in the Chinese Market.
However, the domestic sales has seen a sharp decrease from 52 million to 46 million, a 15%
drop over last year due to the pandemic.