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 refers to the
value-added tax payable by enterprises that purchase goods or receiving taxable
services during the reference period and this part of the tax is allowed to be
deducted from the tax on sales.
Tax on Sales refers to the
value-added tax chargeable by enterprises that sell goods or provide taxable
services during the reference period.
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:
