M-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.

Units of Industrial Statistics and Inquiry  They are classified into two categories (1) corporate industrial enterprises with independent accounting system (2) industrial establishments.

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

(2)Industrial establishments refer to economic units which located in one single place and engaged entirely or primarily in one kind of industrial activity, including financially independent industrial enterprises and units engaged in industrial activities under the non industrial enterprises (or financially dependent). Industrial establishments generally meet the following requirements: They have each one location and are engaged in one kind of industrial activity each; They operate and manage their industrial production activities separately; They have accounts of income and expenditures separately.

(1)State-owned and state holding majority shares enterprises    refer to state-owned enterprises and the enterprises which state holds majority shares. State-owned enterprises (industry ownership by the whole people or state-run industry)  refers 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 Republic of China on the Management of Registration of Corporate Enterprises, including the state-owned enterprise, sole state-funded corporation and state-owned joint ownership enterprise. Joint state-private industries and private industries, which existed before 1957, have been transformed into state-run industries. Since 1992, those were named state-owned industries. Statistics on these enterprises has been included in the state-industries since 1957 when separation of data was no longer necessary.

(2)Collective-owned Enterprises  refers to industrial enterprises where the means of production are owned collectively, including urban and rural enterprises invested by collectives and some enterprises which were formerly owned privately but have been registered in industrial and commercial administration agency as collective units through raising fund from the public.

(3)Share -holding Corporations Ltd.    Refer to economic units registered in accordance with the Regulation of the People Republic of China on the Management of Registration of Corporate Enterprises,  with total registered capitals divided into equal shares and raised through issuing stocks. Each investor hears 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.

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 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 branches of light industry which use manufactured goods as raw materials, including the manufacture of cultural, educational articles and sports goods, chemicals, synthetic fiber, 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 clerical 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. It consists of the following three branches according to the purpose of production or the use of products:

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

(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 refers to the industry that processes raw materials. It includes machine building industry which equips sectors of the national economy, industries of metal structure and cement products, industries producing means of agricultural production, such as chemical fertilizers and pesticides. According to the above principle of classification, the repairing trades which are engaged primarily in repairing products of heavy industry are classified into heavy industry while these engaged in repairing products of light industry are classified into light industry.

Gross Industrial Output Value  is the total volume of industrial products sold or available for sale in value terms which reflects the total achievements and overall scale of industrial production during a given period. It includes the value of the finished products, which are not to be further processed in the enterprises and have been inspected, packed and put in storage, the value of industrial services rendered to other units, and the changes in the value of the semi-finished products and products in process between the beginning and closing of the period. The gross industrial output value is calculated with factory method. No double calculations are to be made within the same enterprise. However, double counting does occur among different enterprises.

Output value of light and heavy industries is also classified with the factory method. Under normal conditions, if the major products of an industrial enterprise belong to light industry products, the gross output value of that enterprise is classified wholly into light industry; the same principle applies to heavy industry.

Value-added of Industry  refers to the final results of industrial production of the industrial trade in money terms during the reference period.

Capital Obtained  refers to capital actually received by the enterprise from investors. It can be further classified by investors as state capital, collective capital, corporate capital, individual capital, capital from Hong Kong, Macau and Taiwan and foreign capital.

Total Assets  refer to all economic resources, owned or controlled by enterprises, that could be measured in monetary terms, including properties, creditors equity and other economic rights of all forms. Classified by the degree of equitability, total assets include circulating assets, long term investment, fixed assets, intangible assets and deferred assets, and other assets.

(1)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.

(2)Fixed assets  refer to the net value of fixed assets, clearance of fixed assets, project under construction, fixed assets losses in suspense. These are corporations fund holdings.

(3)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, measured in monetary terms, that enterprises are responsible for repayment  in the form of cash, assets or labour. Classified by terms of repayment, liability include liquid liabilities and long-term liabilities.

(1)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.

(2)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.

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 shareholders equity in share-holding companies.

Original Value of Fixed Assets  refers to the original value of all fixed assets owned by industrial enterprises, calculated at the cost paid at the time of purchase, installation, reconstruction, expansion, and technical innovation and transformation of the said assets, which includes expenses on purchase, package, transportation, and installation, etc.

Net Value of Fixed Assets  is obtained by deducting depreciation over years from the original value of fixed assets.

Working Capital (Circulating Assets)  refers to assets which can be cashed in or spent or consumed in an operating cycle of one year or over one year, which includes cash, various deposits, short term investment, and receivable payments, and advance payments, stock, etc.

Sales Revenue of Industrial Products  refers to the revenue from the sales of products by industrial enterprises and the revenue from services provided and etc.

Sales Cost of Industrial Products  refers to the actual cost of products of industrial enterprises and industrial services provided, etc..

Tax and Extra Charges on Sales of Products  refer to the tax on city maintenance and construction, consumption tax, resources tax and extra charges for education, which should be borne by the enterprises in selling products and providing industrial services.

Sales Profit of Products  refers to the profit gained by the enterprises by deducting cost, charges and taxes from the business income of the enterprises obtained in selling products and  providing industrial services.

Total Profits  refer to the profits gained by the enterprises.

Value-added Tax Payable  refers to the amount of the value added tax which should be paid by the enterprises in the reporting period.

Ratio of Profits, Taxes and Interests to Average Assets  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 profits, taxes and interests to average assets (%) = [(Total profits + total Taxes + interest payment) ÷ average assets 100%

Ratio of Debts 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 debts to assets (%) = (Total debts ÷ total assets)×100%

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

Value-added Rate of Industry  refers to the ratio of value added of industry in a given period to the gross output value in the same period, which reflects the economic efficiency of cutting down the intermediate input and is calculated as follows:

Value-added Rate of Industry(%)=[Value-added of Industry (at current prices) ] ÷ [Gross Output Value (at Current Prices)]×100%

Turnover of Working Capital  refers to the number of times of turnover of working capital in a given period of time, which reflects the speed of the turnover of working capital and is calculated as follows:

Turnover of Working Capital(%)=(Sales Revenue of Products) ÷ (Average Balance of Total Working Capital)×100%

Ratio of Sales to Gross Output Value  refers to the sales of industrial products to the gross industrial output value during the reference period, and is important in reflecting the linkage between production and sales and the extent of the needs of the society that has been met by the supply of industrial products. It is calculated as follows:

Ratio of Sales to Gross Output Value=Industrial sales÷ Gross industrial output value (at current prices) ×100%

Overall Labour Productivity of Industrial Enterprises 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 labour productivity. The formula used is:

Overall Labour Productivity=(Value Added of Industry) ÷ (Average Number of Staff and Workers)

For the purpose of comparison of the overall labour productivity among different years, the data on the overall labour productivity of the years prior to 1990 have been adjusted on the basis of 1990 constant prices.