Explanatory Notes on Main
Statistical Indicators
Explanatory Notes on Main
Statistical Indicators
Industry refers to the material production sector which is
engaged in the 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).
In industrial
statistics surveys, the units of enquiry are corporate industrial enterprises with
independent accounting systems.
Corporate industrial
enterprises with independent accounting systems refer to enterprises engaging
in industrial production activities, which meet the following requirements: (1)
They are established legally, having their own names, organizations, location
and 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 the 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
being grouped them separately. State-holding enterprises are 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 collectively. Collective enterprises constitute an integral part of
the socialist economy with public ownership. They include urban and rural
enterprises invested collectively, and some enterprises registered in
industrial and commercial administration agency as collective units where funds
are pooled together by individuals who voluntarily give up their right of
ownership.
Share-holding
Cooperative Enterprises refer to economic
units set up on a cooperative basis, with funding partly from employees of the
enterprise and partly from outside investment, where the operation and
management is decided by all 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 capital 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 capital 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 refer to all industrial enterprises
registered as the joint-venture, cooperative, sole (exclusive) investment
industrial enterprises and limited liability corporations with foreign funds.
Enterprises with Hong Kong, Macao, Taiwan and Foreign
Fund refer to all the enterprises with
funds from
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 the 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 the branches of light industry
which use manufactured goods as raw materials, including the manufacture of
cultural, educational articles and sports goods, chemicals, synthetic fibre,
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 office 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 for production. It
consists of the following three branches according to the purpose of production
or the use of products:
(1) Mining,
quarrying and logging industry, which 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 which refers to the industry that processes raw materials. It includes
machine-building industries which equip sectors of the national economy;
industries producing metal structure and cement products; and industries
producing means of agricultural production, such as chemical fertilizers and
pesticides.
In accordance with
the above principles of classification, the repairing trades, which are engaged
primarily in repairing products of heavy industry, are classified as heavy
industry while those which are engaged in repairing products of light industry
are classified as 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 through quality check during the reference period are
to be included no matter whether they are sold or not during the reference
period.
Determination of
final products follows the principle that all products that are included in the
calculation of gross 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) within the enterprise should not be added. However, this approach
allows the possibility of double counting between enterprises.
(3) Content and method of calculation:
The old definition of gross industrial output value was modified during the
1995 National Industrial Census. The revised (new) definition of gross
industrial output value consists of 3 components: value of the finished
products during the reference period, income from processing for external
parties, and value of change in semi-finished products between the end and the
beginning of the reference period.
Value of 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 valued 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 place 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
parties. Income from external processing is calculated using information from
the item “products sales income” in the enterprise accounting at the prices with
value-added tax excluded.
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 between the end and the beginning of the reference
period: refers to the value of change in semi-finished products between the end
and 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 the reverse if otherwise.
(4) Changes in the scope and method of
calculation of the 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 the complexity 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 complexity 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 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. In 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 not.
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 the production approach as follows:
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 activities during a given
period. Gross industrial output includes value of finished products, income
from external processing, and value of change in semi-finished products between
the end and the beginning of the reference period. Since 1995, the gross
industrial output value obtained by the new method is used in the calculation.
(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 term, these are owned or controlled by
enterprises, including properties, creditor’s equity and other economic rights
of all forms. Classified by the degree of liquidity, total assets include
working capitals, long-term investment, fixed assets, intangible assets,
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 Capital refers to capital that an enterprise can cash or use during one year or
one production cycle that may exceed 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 Capital refers to the average value of all
working capital 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 refers to the average of the net value
of fixed assets during the reference period, calculated with the following
formula:
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 be repaid 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. Net assets
equal total assets minus total
liabilities of the enterprise, including the actual assets invested into the
enterprise by investors, accumulation of capital and operating surplus and
non-distributed profits. The enterprise’s assets are 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 the
corresponding item in the “profit table” of the accountant. For enterprises
that do not follow the 2001 Enterprise Accounting Standards, the
year-end accumulation of revenue from the sales of products is used as a
substitute.
Cost of Principal
Business refers to the annual accumulation of
the corresponding item in the “profit table” of the accountant. For enterprises
that do not follow the 2001 Enterprise Accounting Standards, the
year-end accumulation of cost for the sales of products is used as a substitute.
Tax and Extra
Charges from Principal Business refer to the annual accumulation of the
corresponding item in the “profit table” of the accountant. For enterprises
that do not follow the 2001 Enterprise Accounting Standards, the
year-end accumulation of tax and extra charges from the sales of products is
used as a substitute.
Total Profits refer to
the final achievement of production and operation activities of the
enterprises, represented by 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 in the Current Year 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 there from, 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 being kept by the enterprises.
Average number of
employed persons refers to the number of employee everyday during the reference
period, calculated with the following formula:
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:
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
reflects both the operation risk and the capability of the enterprise in
making use of the capital from the creditors. It is calculated as follows:
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:
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:
Total costs in the
above formula are 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:
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:
