Explanatory
Notes on Main Statistical Indicators
Indus try refers to the material production sector which is engaged in
extraction of natural resources and processing and reprocessing of minerals and
agricultural product s, including (1) extraction of natural resources, such as
mining, salt product ion, logging (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, cotton ginning, 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).
Prior to 1984,
the rural industry run by villages and cooperative organizations under village
was classified into agriculture. Since 1984, it has been group ed into
industry.
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 t o
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
Year book in clued following categories by their registration:
State-owned Enterprises refer to industrial enterprises where the means of production or income
are owned by the state. Joint state-private industries and private industries,
which existed before 1957, have been transformed into state industries.
Statistics on these enterprises has been included in the state owned industries
since 1957 when separation of data was no longer necessary.
Collective-owned
Enterprises refer to industrial enterprises where t he means
of production are owned collectively, including urban and rural enterprises
invested by collectives and some enterprises which were formerly owned
privately but have been registered in industrial and commercial administration
agency as collective units through raising fund from the public.
Share-holding
Cooperative Enterprises refer to economic units set up
on cooperative basis, wit h 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 (lab our 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 owner ship 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) stat e-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, wit h capitals from 2 t o 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 as sets.
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 unit s invested or controlled (by holding the majority
of the shares ) by natural persons who hire lab ours 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
form 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 Hong Kong, Macao and Taiwan.
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.
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. The
se 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
sect ors 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 extract s natural resources, including extract ion of petroleum,
coal, metal and non-metal ores and logging.
(2) Raw materials industry refers t o 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, the se intermediate products are
considered as the final products of the enterprise.
Gross industrial out put 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 t he 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 const ruction 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 t he 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 t he 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 with in the
enterprise, if the accounting work of the enterprise is good enough to separate
it from other records, and t he 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 out put value, and vice versa.
(4) Changes in the coverage and method of calculation of
gross industrial output value
Prior t o 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 t he 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 t he production cycle is over 6
months, t he value of change in semi-finished products is included in the gross
industrial output value, other wise 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 product ion 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
good sand paid services consumed during t he 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 product ion 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 product
ion 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.
Capitals Obtained refers to capital actually received by the enterprise from investors that
could be used as operational capitals for a long period. According t o the
current accounting system, capitals obtained can be classified by investors as
state capital, collective cap ital, corporate capital, individual capital,
capital from Hong Kong, Mac au and Taiwan and foreign capital.
State capital: refers to capital which is formed through
state owned investment into the enterprise by government agencies or
institutions that could represent the state in the investment.
Collective capital: refers to capital which is formed
through state-owned investment into the enterprise by collective institutions
or units that could represent the state in the investment.
Corporate capital: refers to capital which is formed
through investment by other corporate units using assets which is at their
disposal by law. Individual capital: refers to capital which is formed through
investment by individuals outside the enterprise or employees of the enterprise
using their personal legal properties.
Capital from Hong Kong, Mac au and Taiwan: refers to
capital which is formed through investment by investors from Hong Kong, Mac au
and Taiwan of China using t heir assets of various forms.
Foreign capital: refers to capital which is formed
through investment by foreign investors.
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 as sets. Data on this
indicator can be obtained by the year-end figures of tot al assets in the
Assets and Liability Table of accounting records of enterprises.
Total of Working
Capitals refer to capitals which can be cashed in or spent
or consumed in an operating cycle of one year or over one year, including cash,
all kinds of deposits, short term investment, receivable and payable payment
for goods or deposits.
Average Value of Working Capitals refers to the average
value of all working capitals of t he enterprise during the reference period.
Original Value of Fixed
As sets refers to the value of payment by t he enterprise
in building, purchasing installing reconstructing, expending or transforming a
particular item of fixed assets. In general, it includes value of purchase,
cost for packaging, transportation, installation, etc.
Annual Average of Net
Value of Fixed Assets refer to average of the net
value of fixed as sets during t he 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 asset
s -cumulative depreciation
Total Liquid Liabilities refer to enterprises' total debt payable within an operating cycle of one
year or over one year, including short-term loans, notes and accounts payable,
advance payments received, wages and welfare funds pay able, taxes and profit
payable, other payables, fees received by advance payment, etc.
Liquid liabilities feature in the short term of payment ,
immediate payment at the request of creditors, or pay able with in one year.
Data on this item can be obtained from the ending figures on liquid liabilities
from the Assets and Liability Table of enterprises.
Total Long-term Liabilities refers to the debt payable
within an operating cycle of one year or over one year. It is the cap ital that
enterprises raised from creditors for the long-term use of enterprises in
addition to capitals put into the enterprise by investors, and constitutes the
economic liabilities that enterprises have to repay by assets or lab our
services, including long-term loans, payable liabilities, long-term pay able,
other long-term liabilities, etc. Compared with the liquid liabilities, the
long-term liabilities feature in large volume, longer term for repayment, and
larger benefits for investors. Data on this item can be obtained from the
ending figures on long-term liabilities from the Assets and Liability Table of
enterprises.
Creditors' Equity refers to investors ownership of net assets of the enterprise, which is
equal to the total assets of the enterprise minus its total liabilities,
including the primary input actually received at the enterprise from invest
ors, capital accumulation fund, surplus accumulation fund and undistributed pr
of it. When the total of creditors' equity is les s than zero, that indicates
the liability of the enterprise is larger that its assets.
Sales Revenue of
Industrial Products refers to the revenue from the
sales of finished and semi-finished products and from rendering of industrial
services by industrial enterprises during the reference period.
Cost of Industrial
Products Sold refers to the actual cost of finished and
semi-finished products sold and industrial services rendered by industrial
enterprises during t he reference period.
Tax and Extra Charges on
Sales of Products refer to the tax on City
maintenance and construction, consumption tax, resources tax and extra charges
for education, which should be borne by the enterprises in selling products and
providing industrial services during the reference period.
Profit from Sal es of
Products refers to the profit gained by the enterprises by
deducting cost, charges and taxes from the business income of the enterprises
obtained in selling products and providing industrial services.
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 y ears.
Value-added Tax Payable refers t o t he 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 524 small-size
enterprises is determined by the taxable sales of the year multiplied by the
tax rate.
Ratio of Profits, Taxes
and Interests to Average Assets reflects the
profit-making cap ability 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 as sets
(%) =[(total profits + total taxes + interest payment) / average assets ]× 100%
In the above formula, total taxes is t he sum of tax and
extra charges on the s ales of products and value-added t ax 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 credit ors. 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
Capital refers to the number of times of turnover of
working cap ital in a given period of time, which reflects t he speed of t he
turnover of working cap ital of industrial enterprises, and is calculated as
follows:
Turnover of working capit al=(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 cost s)× 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 of Industrial Enterprises
reflects efficiency of production and economic results of lab our input of
enterprises. The formula us ed is:
Overall lab our productivity=(value added of industry) /
(average number of staff and workers)
Ratio of Sales to Gross
Output Value reflects the degree at which industrial products
are sold. It help s to analyze the linkage between production and sales and the
extent of t he needs of the society that has been met by t he sup ply of
industrial products. It is calculated as follows:
Ratio of Sales to Gross Output Value=[Industrial sales
/Gross industrial output value (at current prices)]× 100%