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.
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.
For explanation of enterprises of other types of registration covered in
this chapter, please refer to General Survey.
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 in monetary terms. 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.
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.
Total 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 paid-in capital, accumulation of capital and
operating surplus and non-distributed profits. Data are obtained from the
ending figures on “total equity” from the “balance sheets”.
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 refers to the balance of various incomes
minus various spendings in the course of operation,
reflecting the total profits and losses of enterprises in reporting period. It
includes: operating profits, income from subsidies, net investment income and
net income from activities other than operation. Data are obtained from the
annual accumulation of the corresponding item in the “profit table” of the
accountant.
Value-added
Tax Payable in the Current Year refers to the payable tax of enterprises
which engaged in selling of goods or providing services that bring added value
to the goods, such as processing, repairing, fitting and other activities
should be paid according to Tax Law.
It refers to the amount of the value-added tax which should be paid by
the enterprises during the reference period. The formula is as follows:
Value-added
Tax Payable in the Current Year = tax on sales-(tax on purchase-transferred tax
on purchase)-exports deduct tax payable on domestic sales-tax relief+the export tax rebate.
Tax on Purchase in Current Year refers to goods purchased by
industrial enterprises or value added tax that should be paid but being granted
the right to deduct from the tax on sales.
Tax on Sales in Current Year refers to value added tax on
industrial enterprises from sales of goods or taxable services that should be
charged value added tax.
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:
