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
(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, 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 survey
corporate industrial enterprises with independent accounting system.
Corporate industrial enterprises with
independent accounting system refer to enterprises engaging in industrial
production activities, which meet the following requirements: ①They are
established legally, having their own names, organizations, location, able to
take civil liability; ②They possess and use their assets independently, assume
liabilities, and are entitled to sign contracts with other units; ③They are
financially independent and compile their own balance sheets.
Enterprises covered in the industrial
statistics in the Yearbook include following categories by their registration:
State-owned and State-Controlled Enterprises refer to
state-owned enterprises plus state-holding enterprises. State-owned enterprises
(originally known as state-run enterprises with ownership by the whole society)
are non-corporate economic entities registered in accordance with the Regulation
of the People’s Republic of China on the Management of Registration of Legal
Enterprises, where all assets are owned by the state. Included in this
category are state-owned enterprises, state-funded corporations and state-owned
joint-operation enterprises. Joint state-private industries and private industries,
which existed before 1957, were transformed into state-run industries since 1957, and into state-owned industries after 1992. Statistics
on those enterprises are included in the state-owned industries instead of
grouping them separately. State-controlled enterprises is
a sub-classification of enterprises with mixed ownership, referring to
enterprises where the percentage of state assets (or shares by the state) is
larger than any other single share holder of the same enterprise. This
sub-classification illustrates the control of the state over a particular
industry.
Collective-owned Enterprises refer to
economic entities registered in accordance with the Regulation of the People’s
Republic of China on the Management of Registration of Legal Enterprises,
where assets are owned by collectively. Collective enterprises constitute an
integral part of the socialist economy with public ownership. They include
urban and rural enterprises invested by collectives, and some enterprises
registered in industrial and commercial administration agency as collective
units where funds are pulled together by individuals who voluntarily give up
their right of ownership.
Share-holding Cooperative Enterprises refer to
economic units set up on cooperative basis, with funding partly from members of
the enterprise and partly from outside investment, where the operation and
management is decided by the members who also participate in the production,
and the distribution of income is based both on work (labour
input) and on shares (capital input).
Joint-operation enterprises refer to
economic units that are established by joint investment by two or more
corporate enterprises or institutions of the same or different types of
ownership on voluntary, equal and mutual-beneficial basis. They include:
a) state-owned joint-operation enterprises
(joint operation between state-owned enterprises);
b) collective
joint-operation enterprises (joint operation between collective enterprises;
and
c) state-collective joint-operation
enterprises (joint operation between state and collective enterprises).
Limited Liability Corporations 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
capitals from 2 to 49 investors, each investor bears limited liability to the
corporation depending on his/her holding of shares, and the corporation bears
liability to its debt to the maximum of its total assets.
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 Corporate Enterprises,
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.
Private Enterprises refer to
economic units invested or controlled (by holding the majority of the shares)
by natural persons who hire labours for profit-making
activities. Included in this category are private limited liability
corporations, private share-holding corporations Ltd., private partnership
enterprises and private sole investment enterprises registered in accordance
with the Corporation Law, Partnership Enterprise Law and Tentative
Regulation on Private Enterprises.
Enterprises with Funds form Hong Kong, Macao
and Taiwan refers to all industrial enterprises registered as the
joint-venture, cooperative, sole (exclusive) investment industrial enterprises
and limited liability corporations with funds from
Foreign Funded Enterprises refers to all
industrial enterprises registered as the joint-venture, cooperative, sole (exclusive)
investment industrial enterprises and limited liability corporations with
foreign funds.
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.
(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
(1) Definition: Gross industrial output
value is the total volume of final industrial products produced and industrial
services provided during a given period. It reflects the total achievements and
overall scale of industrial production during a given period.
(2) Principles for calculation:
Statistics on industrial production follow
the principle that all products produced by the enterprises and accepted during
the reference period are to be included no matter whether they are sold or not
during the reference period.
Determination of final products follow the
principle that all products that are included in the calculation of grow
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 intermediate (semi-finished) products to sell, these
intermediate products are considered as the final products of the enterprise.
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) should not be added.
However, this approach does not exclude the possibility of double counting
between enterprises.
(3) Content and calculation method: The old
definition of gross industrial output value was modified during the national
industrial census in 1995. The revised (new) definition of gross industrial
output value consists of 3 components: value of the finished products during
the reference period, income from external processing, and value of change in
semi-finished products at the end and at the beginning of the reference period.
Value of the 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 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 value at cost prices
as in the case of enterprise accounting. 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 make the orders.
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 units. Income from
external processing is calculated using information from the item “products
sales income” in the enterprise accounting at the prices excluding value-added
tax.
For income from services such as processing,
repairing and installation of equipment provided to non-industrial units within
the enterprise, if the accounting work of the enterprise is good enough to
separate it from other records, and the share of such services is significant,
it should also be included in the income from external processing.
Value of change in semi-finished products at
the end and at the beginning of the reference period: refers to the value of
change in semi-finished products at the end and at the beginning of the
reference period, which generally can be obtained from accounting records of
enterprises. If the enterprise accounting excludes the cost of semi-finished
products, then it should not be included in the gross industrial output value,
and vice versa.
(4) Changes in the coverage and method of
calculation of gross industrial output value
Prior to 1984, the value of rural industry
run by villages was classified into agriculture instead of industry. Since
1984, it has been included in the gross industrial output value. Method of
calculation for the gross industrial output value was modified in the
industrial census in 1995. The difference in the new method as compared with
the old one is outlined below:
Principle in using full value vs. processing
fee: The new method stipulates that all products produced using own materials
are to be calculated with full value in reporting the gross industrial output
value irrespective of sophistication of production, and for external processing,
it allows calculation using processing fee. In the old method, however, the use
of full value or processing fee was determined by the degree of sophistication
of production in different branches of industries.
Principle in determining the value of change
in semi-finished products: The new method requires that value of the 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. By the old method, it is determined by the type of
enterprises in terms of production cycle. If the production cycle is over 6
months, the value of change in semi-finished products is included in the gross
industrial output value, otherwise it is excluded.
Difference in prices: The new method uses
prices excluding value-added tax in the calculation of gross industrial output
value, while the old method used prices including value-added tax.
Value-added of Industry refers to the
final results of industrial production of industrial enterprises in money terms
during the reference period.
Industrial value-added can be calculated by
two approaches: the production approach, i.e. gross industrial output value
minus intermediate input plus value-added tax, and the income approach, i.e.
income for various factors used in the course of production, including
depreciation of fixed assets, remuneration of labourers,
net of production tax, and operating surplus. Value-added of industry in the
Yearbook is calculated by production approach as following:
Value-added of industry = gross industrial
output industrial intermediate
input + value-added tax
(1) Gross industrial output: refers to the
total achievements of industrial production during a given period. Gross industrial
output includes value of finished products, income from external processing,
and value of change in semi-finished products at the end and at the beginning
of the reference period. Since 1995, it was substituted by the gross industrial
output value by new method.
(2) Industrial intermediate input: refers to
purchased goods and paid services consumed during the industrial production of
enterprises. Fees paid for services include fees paid for the services provided
by material production sectors (industry, agriculture, wholesale and retail
trade, construction, transport, post and telecommunications) and by
non-material production sectors (insurance, banking, culture, education,
scientific research, health and medical care, public administration, etc.). The
determination of industrial intermediate input follows the principle that the
goods and services must be purchased from outside and included in the gross
industrial output, and that the goods and services are inputted into production
and consumed (include low-value consumables) during the reference period.
Industrial intermediate input includes 5
components, namely direct consumption of materials, industrial intermediate
input in manufacturing cost, industrial intermediate input in management cost,
industrial intermediate input in marketing cost and expenditure on interest.
Total Assets refer to all
economic resources, in monetary terms, that is owned or controlled by
enterprises, 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. Data on this indicator can be obtained by
the year-end figures of total assets in the Assets and Liability Table
of accounting records of enterprises.
Annual Average Value of Working Capitals refers to the
average value of all working capitals of the enterprise during the reference
period.
Annual Average of Net Value of Fixed Assets refer to
average of the net value of fixed assets during the reference period,
calculated with the following formula:
Annual Average of Net Value of Fixed
Assets = sum of net value of fixed assets at the beginning and at the end of
each month from January to December / 24.
Information on this indicator can be
obtained from the beginning and ending figures of the original value of fixed
assets and cumulative depreciation from the Assets and Liability Table of
enterprises.
Net value of fixed assets refers to the
original value of fixed assets minus depreciation over the years, i.e.:
Net value of fixed assets = original value
of fixed assets cumulative
depreciation
Total Liabilities refer to
payable liabilities of enterprises that have to repay in terms of money, assets
or labour services. In terms of payment, it can be
divided into liquid liabilities and long-term liabilities. Data on this item is
obtained from the ending figures on total liabilities from the Assets
and Liability Table from the enterprises.
Sales Revenue of Industrial Products refers to the
revenue from the sales of finished and semi-finished products and from
rendering of industrial services by industrial enterprises during the reference
period.
Cost of Industrial Products Sold
refers to the actual cost of finished and semi-finished products sold and
industrial services rendered by industrial enterprises during the reference
period.
Expenses of Industrial Products Sold refer to
expenses occurred in selling industrial products or providing services. Data on
this item is obtained from Profit Table from enterprises.
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 during the reference period.
Total Profits refer to the
final achievements of production and operation of the enterprises, represented
by the total profits after deducting losses (loss is expressed by the negative
figure). It is the sum of profits from operation, income from subsidies,
investment earnings, net income from activities other than operation, and
adjustment of profits and losses of previous years.
Value-added Tax Payable refers to the
amount of the value-added tax which should be paid by the enterprises during
the reference period. It is the sum of tax on sales, export rebate, and
transferred tax on purchases of the current year, minus the tax on purchases of
the current year. Value-added tax payable of small-size enterprises is
determined by the taxable sales of the year multiplied by the tax rate.
Average Annual Number of Employed Persons Employed persons refer to all those
who are employed in enterprises and receive remunerations therefrom,
including currently working employees, retirees who are re-employed, teachers
of local-run schools, as well as foreigners, staff from Hong Kong, Macao and
Taiwan, part-time employees and persons with second job who are employed by the
enterprise, and employees of other units temporarily working in the
enterprises, but excluding former employees who left the enterprise with their
employment records still kept by the enterprises.
Average number of employed persons refers to
the number of employees everyday during the reference
period, calculated with the following formula:
Monthly average number = sum of actual
employees everyday in reference month/number of calendar dates in reference
month
Quarterly average number = sum of monthly
average number in reference quarter/3
Annual average number = sum of monthly
average number in reference year/12
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%
In the above formula, total taxes is the sum
of tax and extra charges on the sales of products and value-added tax payable;
and average assets is the arithmetic mean of the sum of beginning assets and
ending assets.
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%
Both assets and debts are figures at the end
of the reference period.
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 of industrial
enterprises, and is calculated as follows:
Turnover of Working Capital=(sales revenue of products) / (average balance of total
working capital)
In the above formula, average balance of
total working capital refers to the arithmetic mean of the sum of working
capital at the beginning and at the end of the reference period.
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%
Total costs in the above formula is the sum of cost of
products sold, marketing cost, management cost and financial cost.