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.
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
For explanation of enterprises of other
types of registration covered in this chapter, please refer to General Survey.
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 in monetary
terms. 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 final industrial products produced and industrial
services provided during the reference period are to be included. The final
industrial products are included as long as being produced during the reference
period, no matter whether they are sold or not during the reference period. The
gross industrial output value will not cover those products that are not from
industrial production.
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. The
intermediate products sold by enterprises are considered as the final products
of the enterprise and counted into the gross industrial output value. However,
for the intermediate products being transferred among workshops and the
work-in-progress products, only the balance value from the beginning to the end
of the period is calculated.
Gross industrial output value is calculated
following the principle of factory approach, i.e. industrial enterprise with
legal entity is used as a whole in calculating the gross industrial output
value, which will cover the total value of final industrial products produced
and industrial services provided by these enterprises during the reference
period.
(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.
Total
Assets refer to all resources that are owned or
controlled by enterprises through previous trades or transactions with
expectation of making economic profits. Classified by the degree of liquidity,
total assets include current assets, and non-current assets. Current assets can
be classified into monetary assets, trading financial assets, notes receivable,
accounts receivable, advanced payments, other prepaid money and inventories.
Non-current assets can be divided into long-term equity investment, fixed
assets, intangible assets and other non-current 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.
Total
Current Assets
refer to the assets that
meet one of the following requirements: (1) expected to be cashed, sold or used
in a normal operation cycle, mainly including inventory and accounts
receivable; (2) be owned for trading purpose mainly; (3) expected to be cashed
in one year (including one year) from the day of the Assets and Liability
Table; (4) unlimited cash or cash equivalents that can be exchanged with other
assets or being capable of settling debts during one year since the day of
Assets and Liability Table. Included are monetary assets, notes receivable,
accounts receivable and inventories. Data on this indicator can be obtained by
the year-end figures of total current assets in the Assets and Liability Table
of the accounting records of enterprises.
Original
Value of Fixed Assets refers to the cost of fixed assets, or
the total expenditure of an enterprise spent on certain fixed assets, through
purchase, construction, installation, transformation, expansion or technical
upgrading. It is reported according to the year-end debit balance of fixed
assets of accounting records.
Accumulated
Depreciation refers to the accumulated figure of
fixed assets depreciation over the past years that are extracted by the
enterprise at the end of the reference period. It is reported according to the
year-end credit balance of accumulated depreciation of accounting records.
Total
Liabilities
refer to payable liabilities of enterprises that accumulated from
previous trades or transactions with expectation of economic profits leaking
out. In terms of payment, it can be divided into liquid liabilities and
long-term liabilities. Data on this item is obtained from the year-end figures
on total liabilities from the Assets and Liability Table of the accounting
record of the enterprises.
Total
Liquid Liabilities refer to the liabilities that
meet one of the following requirements: (1) expected to be repaid in a normal
operation cycle; (2) be owned for trading purpose mainly; (3) expected to be
repaid in one year from the day of the Assets and Liability Table; (4)
enterprise has no right to postpone the settlement of which over a year from
the day of the Assets and Liability Table. Included are short-term loans, notes
payable, accounts payable, employee compensations, taxes and expenses due. Data
on this indicator can be obtained by the year-end figures of total liquid
liabilities in the Assets and Liability Table of the accounting records of
enterprises.
Total
Equity
refers to the residual ownership of enterprise investors by deducting
total liabilities from the total assets, including the paid-in capital,
accumulation of capital, operating surplus and non-distributed profits. Data
are obtained from the year-end figures on “total equity” from the Assets and Liability
Table of the accounting record of enterprise.
Revenue
from Principal Business refers to the income confirmed of an
enterprise from the principal business of selling products and providing labor
services. Data on this indicator can be obtained from the year-end credit
balance of “revenue from principal business” in the accounting record of
enterprise.
Cost
of Principal Business refers to the total cost
occurred from the principal business of the enterprise. Data can be obtained
from the year-end debit balance of “cost of principal business” in the accounting
record of enterprise.
Tax
and Extra Charges from Principal Business refer to the sales tax, consumption tax,
urban maintenance and construction tax and education expenses shouldered by the
enterprise from its principal business. Data are obtained from the year-end
debit balance of “tax and extra charges from principal business” in the
accounting record of enterprise.
Total
Profits
refers to the operation results in a certain accounting period, and it
is the balance of various incomes minus various spendings in the course of
operation, reflecting the total profits and losses of enterprises in reporting
period. Data are obtained from the amount of “total profits” in the “profit
table” of the accounting record of enterprise.
Value-added
Tax Payable
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. The formula is as follows:
Value-added Tax Payable = tax on sales-(tax
on purchase-transferred tax on purchase)-exports deduct tax payable on domestic
sales-tax relief+the export tax rebate.
Tax
on Purchase in Current Year refers to goods
purchased by industrial enterprises or value added tax that should be paid but
being granted the right to deduct from the tax on sales.
Tax
on Sales in Current Year refers to value added tax
on industrial enterprises from sales of goods or taxable services that should
be charged value added tax.
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:
calculated as follows:
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:
In the above formula, total taxes is the sum
of tax and extra charges on the principal business 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
Both assets and debts are figures at the end
of the reference period.
Turnover
of Current Assets refers to the number of times of
turnover of current assets in a given period of time, which reflects the speed
of the turnover of current assets of industrial enterprises, and is calculated
as follows:
In the above formula, average balance of
total current assets refers to the arithmetic mean of the sum of current assets
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:
Total costs in the above formula are the sum
of cost of principal business, marketing 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:
