Non-recurring gains and losses are not directly related to the normal business of the company, and although related to normal business operations, due to its special nature and sporadic nature, it affects all incomes and expenses that truly and fairly reflect the normal profitability of the company. Non-recurring gains and losses include 21 items such as non-current assets disposal gains and losses, government subsidies included in current profit and loss, debt restructuring gains and losses, and corporate restructuring expenses.

After combing, it was found that in 2015 and 2016, the proportion of non-recurring gains and losses to the net profit of listed companies was 11% and 10% respectively. Of the companies that have published annual reports in 2017, 109 have turned losses through non-recurring gains and losses.

It is very important to understand the algorithm of non-recurring gains and losses, and to calculate the evolution of possible future earnings data of listed companies.