Industrial Profits Decreased in the First Two Months of 2019

Note : 1.Due to the overlap of economic type grouping, the total is not equal to the total of sub-items.

2.Due to the rounding-off reasons, the subentries may not add up to the aggregate totals, no adjustment.

Note : 1. Mining and Support Service Activities had a loss of 1.01 billion yuan in the same period of last year.

Annotations:

I. Explanatory Notes:

1. Total Profits: refer to the surplus of various revenue deducting various costs in the production process of  enterprises, reflecting the total profit and loss in the report period.

2. Operating income: refers to the total amount of revenue of enterprises recognized by the principal business and other business operations.

4. Operating costs: refers to the total costs of enterprises incurred by the principal business and other business operations.

4. Total Assets: refers to the resources which are gotten from past transactions or events, owned or controlled by enterprises, and expected to bring economic benefits to the enterprises.

5. Total Liabilities: refers to the current obligation generated from past transactions or events, and expected an outflow of economic benefits from the enterprises.

6. Total Owners' Equity: refers to the residual interests after deducting liabilities, which belongs to the enterprises owners.

9. Notes receivable and Accounts Receivable: refers to the enterprise's rights due to the sale of goods, services, and other business activities, as well as commercial drafts received, including bank acceptance bills and commercial acceptance bills.

In June 2018, the Ministry of Finance issued the Notice on Amending the 2018 Annual Financial Statements of General Enterprises (Accounting [2018] No. 15), and revised the financial statement format of general enterprises. The enterprise balance sheet is no longer listed the item of “Accounts Receivable”, and the items of “receivable notes and accounts receivable” are listed instead. In line with the corporate financial statements, from 2019, stop to release the monthly “accounts receivable” data, and the “receivable notes and accounts receivable” data will be released. Relevant indicators are adjusted accordingly.

10. Finished Goods: refers to manufactured products which are ready for sale by the end of report period.

11. Profit Rate of Revenue from Principal Activities = total profits / revenue from principal activities × 100%, unit: %.

12. Costs for per-hundred-yuan Turnover of Principal Activities = the costs of revenue from principal activities / the revenue from principal activities ×100, unit: yuan.

13. Expenses for per-hundred-yuan Turnover of Principal Activities = (selling expenses + administrative expenses + financial expenses) / the revenue from principal activities ×100, unit: yuan.

14. Revenue from Activities  Brought by per Hundred yuan Assets =  the revenue from activities / average assets / the cumulative number of months × 12 × 100, unit: yuan.

15. Revenue from Activities per Capita = revenue from activities / average number of employment / the cumulative number of months × 12, unit: 10 thousand yuan/ person.

16. Asset-Liability Ratio = total liabilities / total assets × 100%, unit: %.

17. Turnover Days of Finished Goods = 360 × average finished goods / revenue from activities × the cumulative number of months / 12, unit: days.

18. Days Sales Outstanding (the number of days on average a company takes to collect its accounts receivable) = 360 ×average accounts receivable / revenue from activities ×the cumulative number of months / 12, unit: days.

19. In the columns of increase rate year-on-year of the three tables above, the “note” refers to negative total profits in the same period last year, which means loss; the positive value refers to a year-on-year increase of profits; the negative value which is greater than or equal to -100% refers to a year-on-year decrease of profits; the value less than -100% indicates turning gain in the same period last year into loss in current period; and the value of 0 indicates that the profits remain at the same level year-on-year.

II. In order to fully reflect the income scale of industrial enterprises, from 2019, replace “principle revenue from activities” with “revenue from activities”. Relevant indicators are adjusted accordingly.

III. The collective enterprise data released in the past refers to the enterprise whose registration type is “collective”. With the establishment of the modern enterprise system, the proportion of enterprises registered as “collective” is declining (in 2018, the revenue from activities of collective enterprises accounts for the full industrial enterprises above designated size is only 0.18%), so from 2019, the date of the collective enterprise release will be cancel.

IV. The growth rates of the total profits and revenue from activities of industrial enterprises above designated size are calculated on a comparable basis. There are incomparable factors between the data in the reporting period and the same indicator data published in the previous year, which cannot be directly compared to calculate the growth rate. The main reasons are: (1) According to the statistical system, the survay coverage of industrial enterprises above designated size is adjusted regularly every year. Each year, some companies will be included in the survey after having reached designated size, and some will exit the survey due to their smaller size, and there are also influence of new built and starting enterprises, bankruptcies, and companies that have been suspended or sold. (2) By strengthening the statistical law enforcement, the enterprises found in the statistical law enforcement inspection that do not meet the industrial statistics requirements above designated size have been cleared, and relevant bases have been revised in accordance with regulations. (3) Strengthen data quality management and eliminate the cross-regional and cross-industry repeated calculation. According to the latest investigation of the organizational structure carried out by the National Bureau of Statistics, since the fourth quarter of last year, the cross-regional and cross-industry repeated calculation of enterprise groups (companies) has been eliminated. (4) After the implementation of the “reform of replacing business tax with value-added tax” policy, the service industry enterprises turned to pay value-added tax of which the tax rate was lower. The industrial enterprises have gradually divested their internal non-industrial production and operation activities, and turned to the service industry, which had diminished the financial data of industrial enterprises.

V. Statistical Coverage

Industrial enterprises above the designated size, which refer to industrial enterprises with revenue from principal activities over 20 million yuan.

VI. Data Collection

The Financial Report of Enterprises Above the Designated Size conducts complete survey by month (the data on January are not required to report).

VII. Industrial Classification Standard

The Industrial Classification for National Economic Activities (GB/T4754-2017) was implemented, please refer to http://www.stats.gov.cn/tjsj/tjbz/hyflbz.