Profit is the core content for enterprise survival and development. Both the managers and employees are closely related to the enterprise profit, and they will pay great attention to the operating status of the enterprise (gain or loss). In addition, the profit distribution has great influence on enthusiasm of the enterprise managers and employees. The profit distribution plays a vital role in strengthening the cohesion of the enterprise. Therefore, the issue about the reform of profit distribution mechanism within a specific enterprise by using the system dynamics modeling was analyzed. Firstly, the enterprise's development history and reform status were described. Then, the profit distribution between the enterprise and its business units was discussed, and the internal profit formation and profit distribution in the business units were analyzed. Take one of the enterprise business units as an example, a system dynamics model was established for systematic simulation and policy experiments. Finally, a series of useful policy recommendations were proposed.