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
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 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 paid-in capital, accumulation of capital and operating surplus and
non-distributed profits. Data are obtained from the ending figures on “total
equity” from the “balance sheets”.
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 refers to the balance of various incomes minus various spendings
in the course of operation, reflecting the total profits and losses of
enterprises in reporting period. It includes: operating profits, income from
subsidies, net investment income and net income from activities other than
operation. Data are obtained from the annual accumulation of the corresponding
item in the “profit table” of the accountant
Value-added
Tax Payable in the Current Year refers to the payable tax of enterprises which engaged in selling of goods
or providing services that bring added value to the goods, such as processing,
repairing, fitting and other activities should be paid according to Tax
Law. It refers to the amount of the
value-added tax which should be paid by the enterprises during the reference
period. The formula is as follows:
Value-added Tax Payable in the Current Year
= tax on sales-(tax on purchase-transferred tax on purchase)-exports deduct tax
payable on domestic sales-tax relief+the export tax
rebate.
Average
Annual Number of Employed Persons Employed persons refer to all those who
are employed in enterprises and receive remunerations there from, including
currently working employees, retirees who are re-employed, teachers of
local-run schools, as well as foreigners, staff from Hong Kong, Macao and
Taiwan, part-time employees and persons with second job who are employed by the
enterprise, and employees of other units temporarily working in the
enterprises, but excluding former employees who left the enterprise with their
employment records still being kept by the enterprises.
Average number of employed persons refers to
the number of employee everyday during the reference period, calculated with
the following formula:
|
Monthly average |
= |
sum of actual
employees |
|
number of calendar
dates |
|
Annual average |
= |
sum of monthly
average |
|
12 |
|
Quarterly average |
= |
sum of monthly
average |
|
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 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 |