Abstract: This paper discusses the possibilities of improving profit making in higher education in China. In light of the methods of system analysis and relevant analysis, it examines the factors that affect profit making under the operation mechanism, which combines centralized and distributed management models in higher education, from the perspectives of human resource allocation, facility utilization, low cost budgeting and divisional interest balance. An optimized operation mechanism that ensures the healthy development of higher education and brings the functions of university into full play is finally proposed.