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 final industrial products produced and industrial
services provided during the reference period are to be included. The final
industrial products are included as long as being produced during the reference
period, no matter whether they are sold or not during the reference period. The
gross industrial output value will not cover those products that are not from
industrial production.
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. The
intermediate products sold by enterprises are considered as the final products
of the enterprise and counted into the gross industrial output value. However,
for the intermediate products being transferred among workshops and the
work-in-progress products, only the balance value from the beginning to the end
of the period is calculated.
Gross industrial output value is calculated
following the principle of factory approach, i.e. industrial enterprise with
legal entity is used as a whole in calculating the gross industrial output
value, which will cover the total value of final industrial products produced
and industrial services provided by these enterprises during the reference
period.
(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.
Total
Assets refer to all resources that are owned or controlled by enterprises
through previous trades or transactions with expectation of making economic
profits. Classified by the degree of liquidity, total assets include current
assets, and non-current assets. Current assets can be classified into monetary
assets, trading financial assets, notes receivable, accounts receivable,
advanced payments, other prepaid money and inventories. Non-current assets can
be divided into long-term equity investment, fixed assets, intangible assets
and other non-current 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.
Total
Current Assets
refer to the assets that
meet one of the following requirements: (1) expected to be cashed, sold or used
in a normal operation cycle, mainly including inventory and accounts
receivable; (2) be owned for trading purpose mainly; (3) expected to be cashed
in one year (including one year) from the day of the Assets and Liability Table; (4) unlimited cash or cash equivalents
that can be exchanged with other assets or being capable of settling debts during
one year since the day of Assets and
Liability Table. Included are monetary assets, notes receivable, accounts
receivable and inventories. Data on this indicator can be obtained by the
year-end figures of total current assets in the Assets and Liability Table of the accounting records of
enterprises.
Original
Value of Fixed Assets refers to the cost of fixed assets, or the total expenditure of an
enterprise spent on certain fixed assets, through purchase, construction,
installation, transformation, expansion or technical upgrading. It is reported
according to the year-end debit balance of fixed assets of accounting records.
Accumulated
Depreciation refers to the accumulated figure of
fixed assets depreciation over the past years that are extracted by the
enterprise at the end of the reference period. It is reported according to the
year-end credit balance of accumulated depreciation of accounting records.
Total
Liabilities refer to payable liabilities of enterprises that accumulated from
previous trades or transactions with expectation of economic profits leaking
out. In terms of payment, it can be divided into liquid liabilities and
long-term liabilities. Data on this item is obtained from the year-end figures
on total liabilities from the Assets and Liability Table of the accounting
record of the enterprises.
Total
Liquid Liabilities refer to the liabilities that
meet one of the following requirements: (1) expected to be repaid in a normal
operation cycle; (2) be owned for trading purpose mainly; (3) expected to be
repaid in one year from the day of the Assets
and Liability Table; (4) enterprise has no right to postpone the settlement
of which over a year from the day of the Assets
and Liability Table. Included are short-term loans, notes payable, accounts
payable, employee compensations, taxes and expenses due. Data on this indicator
can be obtained by the year-end figures of total liquid liabilities in the Assets and Liability Table of the
accounting records of enterprises.
Total
Equity refers to the residual ownership of enterprise investors by deducting
total liabilities from the total assets, including the paid-in capital,
accumulation of capital, operating surplus and non-distributed profits. Data
are obtained from the year-end figures on “total equity” from the Assets and
Liability Table of the accounting record of enterprise.
Revenue
from Principal Business refers to the income confirmed of an enterprise from the principal
business of selling products and providing labor services. Data on this indicator
can be obtained from the year-end credit balance of “revenue from principal
business” in the accounting record of enterprise.
Cost
of Principal Business refers to the total cost
occurred from the principal business of the enterprise. Data can be obtained
from the year-end debit balance of “cost of principal business” in the
accounting record of enterprise.
Tax
and Extra Charges from Principal Business refer to the sales tax, consumption tax, urban maintenance and
construction tax and education expenses shouldered by the enterprise from its
principal business. Data are obtained from the year-end debit balance of “tax
and extra charges from principal business” in the accounting record of
enterprise.
Total
Profits refers to the operation results in a certain accounting period, and it is
the balance of various incomes minus various spendings
in the course of operation, reflecting the total profits and losses of
enterprises in reporting period. Data are obtained from the amount of “total
profits” in the “profit table” of the accounting record of enterprise.
Value-added
Tax Payable 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.
The formula is as follows:
Value-added Tax Payable = tax on sales-(tax
on purchase-transferred tax on purchase)-exports deduct tax payable on domestic
sales-tax relief+the export tax rebate.
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 principal business 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 Current Assets refers to the number of times of turnover of current assets in a given
period of time, which reflects the speed of the turnover of current assets of
industrial enterprises, and is calculated as follows:
In the above formula, average balance of
total current assets refers to the arithmetic mean of the sum of current assets
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 principal business, 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:
