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).
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: (1)They are established legally, having their own names,
organizations, location, 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.
Enterprises covered in the
industrial statistics in the Yearbook include following categories by their
registration:
State-owned and
State-holding 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-holding 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
from 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.
Enterpries with
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.
Working Capitals refer to capitals that an enterprise can cash or use
during one year or one production cycle that may exceeds one year, including
cash and savings deposits of various forms, short-term investment, money receivable and prepaid money,
inventories, etc.
Annual Average Value of
Working Capitals refers to the average value of all working
capitals of the enterprise during the reference period.
Original Value of Fixed
Assets refers to the total value, in monetary terms,
that an enterprise spent on fixed assets, through construction, purchase,
installation, transformation, expansion or technical upgrading. Generally, it
covers cost of
purchase, packing, transportation and installation, etc.
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.
Owner’s Equity refers to the ownership of net assets of
enterprise by its investors. The net assets equal the total assets minus total
liabilities of the enterprise, including the actual assets invested into the
enterprise by investors, accumulation of capitals and operating surplus and
non-distributed profits. The enterprise’s assets is
less than its liabilities if the sum of owner’s equity is smaller than zero.
Revenue from Principal Business refers to the annual accumulation of
corresponding item in the “profit table” of the accountant. For enterprises
that do not follow the 2001
Cost of Principal
Business refers to the
annual accumulation of corresponding item in the “profit table” of the
accountant. For enterprises that do not follow the 2001
Tax and Extra Charges
from Principal Business refer to the annual accumulation of
corresponding item in the “profit table” of the accountant. For enterprises
that do not follow the 2001
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 Capitals 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.
Overall Labour Productivity is an indicator reflecting the production
efficiency of an enterprise and the economic efficiency of its labour input, calculated by the formula:
Overall Labour Productivity (yuan/person)
= industrial value-added / average of all persons engaged
Sales Ratio of Products is an indicator reflecting the actual sale of
industrial products, analyzing the production-selling and supply-demand
relations. It is calculated as:
Sales Ratio of Products
(%) = value of industrial sales / gross industrial output value (current
prices) * 100%