Non-GAAP Earnings

Non-GAAP earnings are adjusted profit figures that companies present alongside formal accounting results. EP86 面子、底子、日子：财报只讲这三件事 explains that U.S. technology companies often disclose both GAAP and Non-GAAP numbers, sometimes adding back stock-based compensation or other items, while A-share investors also need to watch non-recurring gains through concepts such as deducted non-recurring net profit.

Key Claims

• Adjusted earnings are not automatically wrong, but they shift judgment back to the investor.
• Stock-based compensation, asset sales, government subsidies, investment gains, or one-off items can make reported profit easier or harder to interpret.
• Comparing Chinese and U.S. reports requires attention to accounting standards, fiscal-year timing, statement format, and which profit measure management emphasizes.
• Investors should ask whether adjustments clarify the underlying business or simply remove real economic costs.

Connections

• Financial Statement Analysis — broader report-reading method.
• Return On Equity Analysis — metric that can be distorted if profit or equity measures are misunderstood.
• Investor Education and Investment Risk Management — ordinary-investor interpretation and discipline.