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.
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 Ownership 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.
Limited liability corporations include state sole
funded corporations and other limited liability corporations.
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.
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
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
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
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.
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:
