Explanation of the Division Standard of Large/Medium/Small Sized Industrial Enterprises
(Issued in April, 1988 and supplemented in 1992)
I. Based on the "regulations on capital projects and size (large or medium) division standard" issued by the State Development Planning Commission in 1978 and the existing" division standard of large/medium/small sized industrial enterprises" of the National Bureau of Statistics (NBS), this standard is formulated by the coordination group that is in charge of division of enterprise types together with the State Economic Commission, the State Development Planning Commission, the National Bureau of Statistics, the Ministry of Finance, the Ministry of Labor and Personnel and the State Industrial Census Office by combining the actual conditions then and through coordination, balancing, individualization and supplementation. The standard is agreed by the State Council in principle and issued by the State Economic Commission, the State Development Planning Commission, the National Bureau of Statistics, the Ministry of Finance and the Ministry of Labor and Personnel in 1988 to serve as the single standard for size division of industrial enterprises.
In 1992, the standard was supplemented by the coordination group and issued as the Document No. 176 GJMQ (1992). The newly-supplemented standard has equal effect as the former standard and goes under the general name of "Large/medium/small-sized industrial enterprises division standard". This standard is followed strictly to divide types of industrial enterprises throughout the country.
II. The standard's scope of application takes grossroots statistical units of all industrial enterprises as the division units and enterprises should follow the single standard of their industries no matter which section they belong to. For instance, instruments and meters enterprises affiliated with electronics, nuclear industry, coal industry or metallurgy industry should implement standard of the instruments and meters enterprises in the mechanical industry.
III. In this standard, enterprises are divided into four types: oversized, large (large I and large II), medium (medium I and medium II) and small. According to the standard, as to industries with single product, enterprises that could be divided in term of production capacity are divided in term of designed production capacity or checked and adjusted production capacity; as to industries with diversified products, original value of the productive fixed assets is applied as the division standard (namely the final financial account data of the prior year is referred) and those with special regulations are excluded.
Designed capacity: it refers to the production capacity specified in the design specifications and technical design documents in the course of production creation, expansion or technical distribution.
Checked and adjusted capacity: it refers to the production capacity of enterprises approved by responsible organs after being assessed again when the production capacity exceeds the designed capacity due to technical renovations or when the production capacity can't reach the designed capacity due to changes of geological or design conditions.
Enterprises divided by the original value of the productive fixed assets are newly-built enterprises after 1986 and the price rising of fixed assets should be considered.
IV. Explanatory notes:
1. Integrated steelworks of the ferrous metals industry refer to enterprises that have all round process from mining, coking, iron-making, steel-making to fine shapes.
2. As to the non-ferrous metals industry, division standards are formulated in terms of different kinds of produced metals:
(1) Non-ferrous metal combines refer to enterprises of the non-ferrous metals industry that are engaged in mining, ore dressing and smelting.
(2) Light non-ferrous metals refer to non-ferrous metals whose specific gravity is less than 4.5, including aluminum, magnesium, sodium, kalium and titanium.
(3) heavy non-ferrous metals refer to non-ferrous metals whose specific gravity is more than 4.5, including copper, lead, zinc, cobalt, mercury, cadmium and bismuth (rare metals, such as nickel, tin and antimony, have separate standard).
(4) Common non-ferrous metals refer to the following ten kinds of metals: copper, aluminum, zinc, lead, nickel, antimony, tin, mercury, magnesium and titanium.
3. Chemical industry
(1) Enterprises that produce organic raw materials or composite materials could be divided by the original value of the productive fixed assets instead of production capacity due to variety of products.
(2) If two products of the same enterprise reach the same level by the production capacity, the enterprise could be promoted one grade, for instance, two products in an enterprise reach the Medium I standard, thus the enterprise could be upgraded to Large II.
(3) Phosphate fertilizer plants (ordinary superphosphate): some plants produce sulfuric acid themselves and the standard for being small is that the production capacity is less than 100 kilotons.
4. Mechanical industry
(1) The size standard for automakers is applicable to automakers that produce vehicles whose loading capacity is less than 5 tons; heavy-duty automakers refer to automakers that produce trucks above 8 tons and above, tilting wagons of 7 tons and above and highway tow cars of 15 tons and above; super-duty automakers refer to those that produce heavy trucks and prime-mover trucks of 20 tons and above.
Automakers and heavy-duty automakers are divided by the production capacity and super-duty auto plants are divided by the original value of the productive fixed assets. Some automakers are engaged in automobile production and automobile refitting at the same time and they should be graded in terms of the nature of their main operations.
(2) Large/medium-sized tractors refer to tractors above 20 house powers (14.7 kilowatts) and are calculated by following the ministerial standard.
(3) Enterprises that manufacture relays, capacitors and micro-machines are divided by consulting the standard of the instruments and meters industry.
5. Structural Materials Industry
The converting rate of standardizing boxes and weighing tanks containing plate glasses is 1:0.85.
6. Light industry
(1) Integrated production capacity of paper mills refers to that the production capacity of paper or paperboards with self-made paper pulps reaches the governing criteria; the production capacity with market pulps reaches the governing criteria; the production capacity with self-made pulps and market pulps exceeds the standard although it is under the standard with self-made pulps only.
(2) Take the double-door refrigerators as the standard and the converting rate of double-door refrigerators and single door refrigerator is 1:0.72；multi-door refrigerators are regarded as the same as double-door refrigerators.
(3) Take the double- barreled 2-kilogram washing machine as the standard, the converting rate is 1:0.59 between double-barreled washing machine and single-barreled washing machine; 1.3:1 between full automatic washing machine and double-barreled washing machines; 1.5:1 between cylinder washing machine and double-barreled washing machine.
(4) The converting rate between refined salt and crude salt is 2.2:1 and both products are not allowed for double counting.
(5) The standard of watch enterprises is applicable to integrated mills that produce watches and assembly mills should be distinguished from integrated mills and the referring factor is 1:5.
7. Textile industry
(1) Chemical fiber enterprises produce both filament and shorts. Filament production capacity could be converted into that of shorts, which shall act as the division standard. The production capacity of 1 ton filament could be converted to that of 3 tons of shorts.
(2) Textile mills of fine or rough wool and hemp take the all-function enterprises as the standard. For instance, fine spinning enterprises are provided with the full set of processing and manufacturing capacity from weaving, printing and dyeing to finished products; roving enterprises are provided with the full set of processing and manufacturing capacity from raw material processing, weaving, printing and dyeing to finished products. The large I standard for non-integrated mills of wool spinning and hemp spinning is 20 thousand spinners and above and rough wool spinning is 9 thousand and above.
8. As to enterprises divided by production capacity，their production capacity should be up to the mark and the original cost of productive fixed assets should be 60 millions and above for large I and 30 millions for large II. Among them, the original cost of productive fixed assets should be 20 millions and above for papermaking, washing machine production, bicycle production，linter, hemp, silk and silk spinning of the textile industry and tobacco enterprises in the light industry.
9. As to power industry bureaus that serve as gross roots statistical units, they could be listed as large enterprises or apply for mega-corporations if there are affiliated large power plants or power supply bureaus under them. They can but be listed as medium enterprises in there are only medium power plants or power supply bureaus within the power industry bureaus.
10. Municipal public utility industry
Gas undertaking：
(1) Year-end air-supply number: it refers to the practical number of subscribers at the end of year of the principal enterprise.
(2) Man-made gas industry users are converted to standard users by 10 cubic meters per day and public welfare users are converted to standard users by 2 cubic meters per day.
(3) LPG users are converted to standard users by the kind of cylinders they use (50 kilograms or 15 kilograms).
(4) Natural gas industry users are converted to standard users by 4 cubic meters per day and public welfare users are converted to standard users by 0.8 cubic meter per day.
(5) The year-end gas-supply number indices of independent gas production enterprises that don't supply users directly are converted to citizen users by the practical flowing capacity (daily gas supply), by the ratio of citizens 60% and non-citizens 40% and by the formula (2 cubic meters/household/day of citizens 10 cubic meters/household/day of non-citizens.
11. In the Division Standard for Large/Medium/Small Industrial Enterprises, as to industries with two (or more) division standards, both (or more) should be met at the same time.