Explanatory
Notes on Main Statistical Indicators
Industry
refers to the material production sector which is engaged in 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).
Prior to 1984, the rural industry run by villages and
cooperative organizations under village was classified into agriculture. Since
1984, it has been grouped 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: ①They are established
legally, having their own names, organizations, location, able to take civil
liability; ②They possess and use their assets independently, assume
liabilities, and are entitled to sign contracts with other units; ③They
are financially independent and compile their own balance sheets.
Enterprises covered in the industrial statistics in the
Yearbook include following categories by their registration:
State-owned and State-Controlled 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
Collective-owned Enterprises refer to economic entities registered in accordance with the
Regulation of the People’s Republic of
Share-holding Cooperative Enterprises refer to economic units set up on cooperative basis, with
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 (labour 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 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 capitals 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.
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 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 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. These
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
sectors 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 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 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, 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) 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 the 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 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 value 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 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 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 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 output value, and vice versa.
(4) Changes in the coverage and method of calculation of
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 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 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 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 production 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 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 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 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.
Annual Average Value of Working Capitals refers to the average value of all working capitals of
the enterprise during the reference period.
Annual Average of Net Value of Fixed Assets refer to average of the net value of fixed assets
during the 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 assets
cumulative depreciation
Total Liabilities refer to payable liabilities of enterprises that have to
repay 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.
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
the reference period.
Expenses of Industrial Products Sold refer to expenses occurred in selling industrial
products or providing services. Data on this item is obtained from Profit Table
from enterprises.
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.
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 years.
Value-added Tax Payable 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
kept by the enterprises.
Average number of employed persons refers to the number of
employees everyday during the reference period, calculated with the following
formula:
Monthly average number = sum of actual employees everyday in
reference month/number of calendar dates in reference month
Quarterly average number = sum of monthly average number in
reference quarter/3
Annual average number = sum of monthly average number in
reference year/12
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:
Ratio of Profits, Taxes and Interests to Average Assets (%) =
[(total profits + total taxes + interest payment) / average assets ]×100%
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 reflect both the operation risk and the capability of the
enterprise in making use of the capital from the creditors. 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 Capita 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:
Turnover of Working Capital=(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 costs)×100%
Total costs in the
above formula is the sum of cost of products sold, marketing cost, management
cost and financial cost.