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.
Enterprises covered in
the industrial statistics in the Yearbook include the following categories by
their registration:
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
Collective-owned Enterprises refer to economic entities registered in accordance with the
Regulation of the People’s Republic of
Cooperative Enterprises refer to economic units set up on a
cooperative basis, with funding partly from employees of the enterprise and
partly from outside investment, where the operation and management is decided
by all 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 Ownership 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 capital 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.
Limited liability
corporations include state sole funded corporations and other limited liability
corporations.
Share-holding Corporations Ltd. refer
to economic units registered in accordance with the Regulation of the People’s
Republic of
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 from 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 refer 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 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. 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.
Annual Average Value of Working Capital refers to the average value of all working capital of the enterprise
during the reference period.
Annual Average of Net Value of Fixed Assets refers to the average of the net value of fixed assets during the
reference period, calculated with the following formula:
|
Annual Average |
sum of the net value of
fixed assets at |
|
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 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.
Owner’s 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 actual assets
invested into the enterprise by investors, accumulation of capital and
operating surplus and non-distributed profits. The enterprise’s assets are less
than its liabilities if the sum of owner’s equity is smaller than zero.
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
Enterprise Accounting Standards, the year-end accumulation of revenue from the
sales of products is used as a substitute.
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
Enterprise Accounting Standards, the year-end accumulation of cost for the
sales of products is used as a substitute.
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
Enterprise Accounting Standards, the year-end accumulation of tax and extra
charges from the sales of products is used as a substitute.
Total Profits refer to the final achievement of production and operation
activities of the enterprises, represented by 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 in the Current Year 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 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:
|
Monthly average |
sum of actual employees |
|
number of calendar dates |
|
Annual average |
sum of monthly average |
|
12 |
|
Quarterly average |
sum of monthly average
number |
|
3 |
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, |
total profits + |
×100% |
|
average assets |
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:
|
Ratio of Debts |
total debts |
×100% |
|
total assets |
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:
|
Turnover of |
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 profits |
×100% |
|
total costs |
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:
|
Sales Ratio |
value of |
×100% |
|
gross industrial output |