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
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%