Explanatory Notes on Main Statistical Indicators

 

Industry   refers to the material production sector which is engaged in extraction of natural resources and processing and reprocessing of minerals and agricultural products, including 1) extraction of natural resources, such as mining, salt production, logging (but not including hunting and fishing); 2) processing and reprocessing of farm and sideline produces, such as rice husking, flour milling, wine making, oil pressing, cotton ginning, silk reeling, spinning and weaving, and leather making; 3) manufacture of industrial products, such as steel making, iron smelting, chemicals manufacturing, petroleum processing, machine building, timber processing; water and gas production and electricity generation and supply; 4) repairing of industrial products such as the repairing of machinery and means of transport (including cars). Prior to 1984, the rural industry run by villages and cooperative organizations under village was classified into agriculture. Since 1984, it has been grouped into industry.

In industrial statistics surveys, the units of enquiry are corporate industrial enterprises with independent accounting systems.

Corporate industrial enterprises with independent accounting systems refer to enterprises engaging in industrial production activities, which meet the following requirements: (1) They are established legally, having their own names, organizations, location and able to take civil liability; (2) They possess and use their assets independently, assume liabilities and are entitled to sign contracts with other units; (3) They are financially independent and compile their own balance sheets.

Types of enterprise registration involved in this yearbook are as the following:

(1) State-owned Enterprises: refer to non-corporation economic units where the entire assets are owned by the state and which have registered in accordance with the Regulation of the People’s Republic of China on the Management of Registration of Corporate Enterprises. Excluded from this category are sole state-funded corporations in the limited liability corporations.

(2) Collective-owned Enterprises: refer to economic units where the assets are owned collectively and which have registered in accordance with the Regulation of the People’s Republic of China on the Management of Registration of Corporate Enterprises.

(3) Cooperative Enterprises: refer to a form of collective economic units (enterprises) where capitals come mainly from employees as their shares, with certain proportion of capital from the outside, where production is organized on the basis of independent operation, independent accounting for profits and losses, joint work, democratic management, and a distribution system that integrates remuneration according to work with dividend according to capital share.

(4) Joint Ownership Enterprises: refer to economic units established by two or more corporate enterprises or corporate institutions of the same or different ownership, through joint investment on the basis of equality, voluntary participation and mutual benefits. They include state joint ownership enterprises, collective joint ownership enterprises, joint state-collective enterprises, other joint ownership enterprises. They include:

a) State-owned joint-operation enterprises (joint operation between State-owned enterprises);

b) Collective joint-operation enterprises (joint operation between collective enterprises);

c) State-collective joint-operation enterprises (joint operation between state and collective enterprises);

d)Other joint-operation enterprises(joint operation exclude state and collective enterprises).

(5) Limited Liability Corporations: refer to economic units established with investment from 2-50 investors and registered in accordance with the Regulation of the People’s Republic of China on the Management of Registration of Corporations, each investor bearing limited liability to the corporation depending on its share of investment, and the corporation bearing liability to its debt to the maximum of its total assets. Limited liability corporations include exclusive state-funded limited liability corporations and other limited liability corporations.

Exclusive state-funded limited liability corporations: State-authorized investment institutions or departments of State has authorized the establishment of a separate investment in the limited liability company.

Other limited liability corporations:corporation exclude exclusive state-funded limited liability company.

(6) Share holding Corporations Ltd.: refer to economic units registered in accordance with the Regulation of the People’s Republic of China on the Management of Registration of Corporations, with total registered capitals divided into equal shares and raised through issuing stocks. Each investor bears limited liability to the corporation depending on the holding of shares, and the corporation bears liability to its debt to the maximum of its total assets.

(7) Private Enterprises: refer to profit-making economic units invested and established by natural persons, or controlled by natural persons using employed labor. Included in this category are private limited liability corporations, private share-holding corporations Ltd., private partnership enterprises and private-funded enterprises registered in accordance with the Corporation Law, Partnership Enterprises Law and Interim Regulations on Private Enterprise.

(8) Other Domestic-funded Enterprises: refer to domestic-funded economic units other than those mentioned above.

(9) Joint-venture Enterprises with Funds from Hong Kong, Macao and Taiwan: refer to enterprises jointly established by invertors from Hong Kong, Macao and Taiwan with enterprises in the mainland of China in accordance with the Law of the People’s Republic of China on Sino-foreign Joint Venture Enterprises and other relevant laws, where the share of investment, profits and risks is stipulated in the contract.

(10) Cooperative Enterprises with Funds from Hong Kong Macau and Taiwan: established by investors from Hong Kong, Macau and Taiwan with enterprises in the mainland of China in accordance with the Law of the People’s Republic of China on Sino-foreign Cooperative Enterprises and other relevant laws, where the investment or provision of facilities, and the share of profits and risks is stipulated in the cooperative contract.

(11) Enterprises with Sole (exclusive) Investment from Hong Kong, Macau and Taiwan: refer to enterprises established in the mainland of China with exclusive investment from investors from Hong Kong, Macau and Taiwan in accordance with the Law of the People’s Republic of China on Foreign-Funded Enterprises and other relevant laws.

(12) Share-holding Corporations Ltd. with Investment from Hong Kong, Macau and Taiwan: refer to share-holding corporations Ltd. established with the approval from the former Ministry of Foreign Trade and Economic Relations in line with relevant state regulations, where the share of investment from Hong Kong, Macau or Taiwan businessmen exceeds 25% of the total registered capital of the corporation. In case the share of investment from Hong Kong, Macau or Taiwan is less than 25% of the total registered capital, the enterprise is to be classified as domestic-funded share-holding corporation Ltd.

(13) Joint-venture Enterprises with Foreign Investment: refer to enterprises jointly established by foreign enterprises or foreigners with enterprises in the mainland of China in accordance with the Law of the People’s Republic of China on Sino-foreign Joint Venture Enterprises and other relevant laws, where the share of investment, profits and risks is stipulated in the contract.

(14) Cooperation Enterprises with Foreign Investment: refer to enterprises jointly established by foreign enterprises or foreigners with enterprises in the mainland of China in accordance with the Law of the People’s Republic of China on Sino-foreign Cooperative Enterprises and other relevant laws, where the investment or provision of facilities, and the share of profits and risks is stipulated in the cooperative contract.

(15) Enterprises with Sole (exclusive) Foreign Investment: refer to enterprises established in the mainland of China with exclusive investment from foreign investors in accordance with the Law of the People’s Republic of China on Foreign-Funded Enterprises and other relevant laws.

(16) Share-holding Corporations Ltd. with Foreign Investment: refer to share-holding corporations Ltd. established with the approval from the Ministry of Foreign Trade and Economic Relations in line with relevant state regulations, where the share of investment from foreign investors exceeds 25% of the total registered capital of the corporation. In case the share of foreign investment is less than 25% of the total registered capital, the enterprise is to be classified as domestic-funded share-holding corporation Ltd.

State-holding Enterprises   refer to a classification of enterprises of mixed ownership. It means the state-owned asset of total assets is more than that of other owners. The classification shows the status of share held by state-owned economy.

Light Industry   refers to the industry that produces consumer goods and hand tools. It consists of two categories, depending on the materials used:

(1) Industries using farm products as raw materials. These are the branches of light industry which directly or indirectly use farm products as basic raw materials, including the manufacture of food and beverages, tobacco processing, textile, clothing, fur and leather manufacturing, paper making, printing, etc.

(2) Industries using non-farm products as raw materials. These are the branches of light industry which use manufactured goods as raw materials, including the manufacture of cultural, educational articles and sports goods, chemicals, synthetic fibre, chemical products for daily use, glass products for daily use, metal products for daily use, hand tools, medical apparatus and instruments, and the manufacture of cultural and office machinery.

Heavy Industry   refers to the industry which produces capital goods, and provides various sectors of the national economy with necessary material and technical basis for production. It consists of the following three branches according to the purpose of production or the use of products:

(1) Mining, quarrying and logging industry, which refers to the industry that extracts natural resources, including extraction of petroleum, coal, metal and non-metal ores.

(2) Raw materials industry refers to the industry that provides various sectors of the national economy with raw materials, fuels and power. It includes smelting and processing of metals, coking and coke chemistry, chemical materials and building materials such as cement, plywood, and power, petroleum refining and coal dressing.

(3) Manufacturing industry which refers to the industry that processes raw materials. It includes machine-building industries which equip sectors of the national economy; industries producing metal structure and cement products; and industries producing means of agricultural production, such as chemical fertilizers and pesticides.

In accordance with the above principles of classification, the repairing trades, which are engaged primarily in repairing products of heavy industry, are classified as heavy industry while those which are engaged in repairing products of light industry are classified as light industry.

Gross Industrial Output Value   refers to the total volume of final industrial products produced and industrial services provided in this year.

(1)Principles for calculations

Statistics on industrial production follow the principle that all products produced by the enterprises and accepted through quality check during the reference period are to be included no matter whether they are sold or not during the reference period.

Determination of final products follows the principle that all products that are included in the calculation of gross industrial output value are the final products of the enterprise which have been accepted through quality check and require no further processing. If an enterprise has semi-finished products to sell, these intermediate products are considered as the final products of the enterprise.

 Finished and semi-finished products which tranfer in the workshop can only calculate the difference value between the end and the beginning.

Gross industrial output value is calculated following the principle of factory approach, i.e. industrial enterprise is used as the basic accounting unit in calculating the gross industrial output value. By this approach, value of the same product is not to be double-counted, and the output value of different workshops (branch factories) within the enterprise should not be added. However, this approach allows the possibility of double counting between enterprises.

(2) Content

Gross industrial output value consists of 3 components: value of the finished products during the reference period, income from processing for external parties, and value of change in semi-finished products between the end and the beginning of the reference period.

Value of finished products during the reference period: refers to the value of all finished (semi-finished) industrial products that are produced during the reference period without the need for further processing, checked for acceptance, packed and put into the warehouse of the enterprise, including the value of own-produced equipment and the value of products provided to the projects under construction of the enterprise, and to other non-industrial or welfare units. Value of finished products does not include the value of finished products (semi-finished products) that are produced using the materials from the clients who place the orders.

Value of finished products during the reference period is calculated by the quantity of products produced using own materials multiplied by the average unit prices at which products are sold (excluding value-added tax). Own-produced equipment and products produced for own use are valued at cost prices as in the case of enterprise accounting.

Income from external processing: refers to income from contracted external processing of industrial products (including processing of industrial products using materials from the clients), and the income from industrial repairing work provided to other parties. Income from external processing is calculated using information from the item “products sales income” in the enterprise accounting at the prices with value-added tax excluded.

If the income from external processing is paid beyond one yearEnterprises which the share of income from processing service is significant should adjust and record actual income from external processing this year.

Value of change in semi-finished products between the end and the beginning of the reference period.If the enterprise accounting excludes the cost of semi-finished products,then it should not be included in the gross industrial output value,and the reverse if otherwise.

Value of change in semi-finished products between the end and the beginning of the reference period:refers to the value of change in semi-finished products between the end and the beginning of the reference period. If the value of the end is less than the beginningthe index is negative and not dealted as zero.

(3) Method of calculation

All products produced using own materials are to be calculated with full value in reporting the gross industrial output value irrespective of the complexity of production.

For external processing, it allows calculate using processing fee.There are two cases: aBetween industrial enterprises.For gross industrial output valueprocessing enterprises calculate using processing fee and Commissioned processing calculate using full price.bBetween industrial enterprise and non-industrial enterprise.When industrial enterprise is processing enterprise,it allows caluculate using processing fee.

The value of change in semi-finished products should be included in the gross industrial output value if it is included in the accounting record of the enterprise, otherwise it should not be included.

Industrial Sales Value   is the total volume of industrial products produced and sold by industrial enterprises in a given period in monetary terms. It includes: (1) the value of finished-products; (2) the value for external processing. The difference between all products produced using own materials and external processing for calculation of industrial sales value is as same as the calculation of gross industry output value.

Value of Export Delivery  refers to the value of products exported via foreign trade agencies or by the industrial enterprises on their own (including the export to Hong Kong, Macao and Taiwan), as well as the value of products in the productions like processing with foreign designs, processing on given materials, assembling of supplied parts and compensation trade, which is settled by foreign exchanges. The value of export delivery should be calculated in RMB according to the exchange rate at the time of trade.

Total Assets   refer to all assets which are owned or controlled by enterprises, including circulating assets, long-term investment, fixed assets, intangible assets and deferred assets, other long-term assets, and deferred taxes, etc. The summation of above items is equal to total assets shown in the balance sheets of the enterprises. Total assets correspond to the summation item of total assets shown in the balance sheets of the enterprises

(I) Circulating assets (working capital) refer to assets which can be cashed in or spent or consumed in an operating cycle of one year or over one year, including cash, all kinds of deposits, short term investment, receivables, advance payment, stock, etc. Circulating assets correspond to the summation item of circulation assets shown in the balance sheets of the enterprises.

(II) Fixed assets refer to the assets with high unit value can keep its original body in use and last for a long period. Refers to the use of more than one year of housing, buildings, machines, machinery, transport equipment and other production and business-related equipment, apparatus, tools, etc. Some items which are not belong to the production and operation of major equipment, but the unit value of more than 2,000 yuan, and the use of more than two years, should also be as fixed assets. Fixed assets correspond to the summation item of fixed assets shown in the balance sheets of the enterprises.

 (III) Intangible assets refer to the assets without material form used by enterprises over a long time, such as patents, non-patent technologies, trade marks, copyright, land use right, business reputation, etc.

Total Liabilities   refer to the debts that enterprises are responsible for repayment, including liquid liabilities and long-term liabilities. The forms of reimbursement are including currency,assets and providing labor services.Total liabilities correspond to the summation item of liabilities shown in the balance sheets of the enterprises.

(I) Liquid liabilities (also called quick liabilities or immediate liabilities) refer to enterprises total debt payable within an operating cycle of one year or over one year, including short term loans, payables and advance payments, wages payable, taxes payable and profit payable, etc. Liquid liabilities correspond to the summation item of liquid liabilities shown in the balance sheets of the enterprises.

(II) Long-term liabilities refers to total debt payable within an operating cycle of one year or over one year, including long-term loans, payable liabilities, long-term payables, etc. Long-term liabilities correspond to the summation item of long-term shown in the balance sheets of the enterprises.

Creditors' Equity   refers to investors' ownership of net assets of the enterprise. It is equal to the total assets of the enterprise minus its total liabilities, including the primary input from investors, capital accumulation fund, surplus accumulation fund and undistributed profit.It is the last digital of “creditors’ equity” in “balance sheet”. Creditors equity correspond to the summation item of creditors’ equity shown in the balance sheets of the enterprises.

Revenue from Principal Business  refers to the toal of revenue from principal business. It is the annual accumulation of the corresponding item in the “profit table” of the accountant. For enterprises that follow the 2006 Enterprise Accounting Standards, the year-end accumulation of Operating income is used as a substitute.

Cost of Principal Business   refers to real costs from principal business. It is the annual accumulation of the corresponding item in the “profit table” of the accountant. For enterprises that follow the 2006 Enterprise Accounting Standards, the year-end accumulation of Operating costs is used as a substitute.

Tax and Extra Charges from Principal Business  refer to the tax and charges including the business tax, consumption tax, city maintenance and construction tax, resources tax, land increasing value tax and extra charges for education and etc. It is the annual accumulation of the corresponding item in the “profit table” of the accountant. For enterprises that follow the 2006 Enterprise Accounting Standards, the year-end accumulation of tax and extra charges from the sales of products is used as a substitute.

Profit from business    refers to the profits from operation activities, that is the main business income minus the cost of main business and main business tax and surcharges, add other business profits, minus operating expenses, management fees, finance charges. It is the annual accumulation of the corresponding item in the “profit table” of the accountant.

Value Added Tax Payable   refers to the amount of the value-added tax, which should be paid by the enterprises in the reporting period.According to the tax laws, increasing the activities of the current value of the goods,such as the sale of goods or the provision of processing, repair workshop and other services should pay taxes.It is calculated as follows:

Value added tax payable=tax on sales-(tax on purchases-transferred tax on purchases)- Tax credits-tax cut +export rebate

Total Profits   refers to the annual accumulation of the corresponding item in the “profit table” of the accountant. It is the profits gained from the revenues in the reference period, including business profits, subsidies, net income of investment and net income of other business.

Total Value of Profit and Tax (Pre-tax Profits)   refers to the sum of the total profits, products sales tax and surcharges and the value added tax payable of industrial enterprises. It is also called Pre-tax profits.

Industrial Comprehensive Index of Economic Efficiency   is a special kind of relative figure to comprehensively measure overall economic efficiency of  regional industry, showing the quality of industrial economic efficiency of the reference period. Industrial comprehensive index of economic efficiency is calculated with 7 items of ratio of total assets to industrial output value, ratio of creditors' equity of current year to that of previous year, ratio of liabilities to assets, turnover ratio of output value, circulating funds, ratio of profits to cost, overall labor productivity, ratio of sales to products. The actual figure of every indicator above is divided by responding national standard numerical value, and the results multiply correlative weight coefficients, then the total number is divided by general weight coefficient. The index comprehensively reflects the changes of regional industrial economic efficiency in static and dynamic status, eliminating the incomparable factors at a certain extent.

Ratio of Total Assets to Industrial Output Value   reflects the profit-making capability of all assets of the enterprise and is a key indicator manifesting the performance and management and evaluating the profit-making potential of the enterprise. It is calculated as follows:

Ratio of Total Assets to Industrial Output (%) = [(Total profits + Total taxes + Interest payment) / average assets] × 100%

Capital Maintenance and Appreciation Rate   reflects the changes of an enterprise’s net assets. It epitomizes the growth capability of an enterprise. Its calcuating formula is:

Capital Maintenance and appreciation rate = Ownership equity at the end of the reporting period/Ownership equity at the same period of the previous year.

Ratio of Liabilities to Assets   reflect both the operation risk and the capability of the enterprise in making use of the capital from the creditors. It is calculated as follows:

Ratio of liabilities to assets (%) = Total liabilities/total assets×100%

Turnover Ratio of Circulating Funds   refers to times of turnover of circulating funds in a given period of time, which reflects the speed of the turnover of working capital and is calculated as follows:

Turnover Ratio of Circulating Funds (%) = Sales Revenue of Products/Average Balance of Total Circulating Funds×100%

Ratio of Profits to Costs   refers to the ratio of profits realized in a given period to the total costs in the same period, which reflects the economic efficiency of input cost and is calculated as follows:

Ratio of Profits to Cost (%) =Total Profits/Total Costs×100%

Overall Labor Productivity   refers to the average output per employed person in industrial enterprises in value terms. At present, the value added and the average number of staff and workers of an industrial enterprises in a given period are used to calculate the overall labor productivity. The formula used is:

Overall Labor Productivity = (Value Added of Industry) / (Average Number of Staff and Workers)

Ratio of Sales to Products   refers to the ratio of total sales in a given period to the gross output value in the same period, which reflects the extent of industrial output sold and is calculated as follows:

Ratio of Sales to Products (%) =Total Sales (at Current Prices) / Gross Output Value (at Current Prices) ×100%

Ratio of Profits to Sales   refers to the ratio of total profits to the sales revenue in a given period and is calculated as follows: Ratio of Profits to Sales (%) =Total Profits /Sales Revenue×100%

Ratio of Accumulated Capital to Original Capital   refers to the ratio of the increased volume of creditors’ equity to the creditors’ equity at the year’s beginning. The formula used is:

Ratio of Accumulated Capital to Original Capital (%) = Increased Volume of Creditors’ Equity / Creditors’ Equity at Year’s Beginning×100%

Current Ratio  refers to the ratio of the circulating assets to the circulating liabilities, i.e. the amount of circulating assets as the guarantee to pay off each yuan of circulating liabilities, which reflects the ability of the enterprise to pay off the due circulating liabilities with the circulating assets realizable in a short period of time. The formula is:

Current Ratio (%) = Circulating Assets / Circulating Liabilities

Quick Ratio  refers to the ratio of quick assets to circulating liabilities of the enterprise, and is calculated as the follows:

Quick Ratio = Quick Assets / Circulating Liabilities

Ratio of Equity to Production   refers to the ratio of total liabilities to creditors’ equity. It is the sign of financial stability of the enterprises, and also called ratio of total liabilities to total capital. The formula is:

Ratio of Equity to Production = Total Liabilities / Creditors’ Equity