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, logging (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, cotton ginning, 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).

State-owned enterprises  refers to non-corporation economic units, where the entire assets are owned by the state and which have registered in accordance with the Regulation of the People’s Republic of China on the Management of Registration of Corporate Enterprises, including the state-owned enterprise, sole state-funded corporation and state-owned joint ownership enterprise. Joint state-private industries and private industries, which existed before 1957, have been transformed into state-run industries. Since 1992, those were named state-owned industries. Statistics on these enterprises has been included in the state-industries since 1957 when separation of data was no longer necessary.

    Collective-owned Industry  refers to industrial enterprises where the means of production are owned collectively, including urban and rural enterprises invested by collectives and some enterprises which were formerly owned privately but have been registered in industrial and commercial administration agency as collective units through raising fund from the public.

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 hears 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.

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 Hong Kong, Macao and Taiwan.

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 and logging.

(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 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.

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.

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-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

Capitals Obtained refers to capital actually received by the enterprise from investors that could be used as operational capitals for a long period. According to the current accounting system, capitals obtained can be classified by investors as state capital, collective capital, corporate capital, individual capital, capital from Hong Kong, Macao and Taiwan and foreign capital.

Total Assets refer to all economic resources, in monetary terms, which 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.

Total of Working Capitals refer to capitals which can be cashed in or spent or consumed in an operating cycle of one year or over one year, including cash, all kinds of deposits, short term investment, receivable and payable payment for goods or deposits.

    Original Value of Fixed Assets  refers to the value of payment by the enterprise in building, purchasing installing reconstructing, expending or transforming a particular item of fixed assets. In general, it includes value of purchase, cost for packaging, transportation, installation, etc.

Net Value of Fixed Assets  is obtained by deducting depreciation over years from the original value of fixed assets.

Total Liquid Liabilities refer to enterprises' total debt payable within an operating cycle of one year or over one year, including short-term loans, notes and accounts payable, advance payments received, wages and welfare funds payable, taxes and profit payable, other payables, fees received by advance payment, etc. Liquid liabilities feature in the short term of payment , immediate payment at the request of creditors, or pay able within one y ear.

Total Long-term Liabilities refers to the debt payable within an operating cycle of one year or over one year. It is the capital that enterprises raised from creditors for the long-term use of enterprises in addition to capitals put into the enterprise by investors, and constitutes the economic liabilities that enterprises have to repay by assets or labour services, including long-term loans, payable liabilities, long-term payable, other long-term liabilities, etc. Compared with the liquid liabilities, the long-term liabilities feature in large volume, longer term for repayment, and larger benefits for investors.

Creditors' Equity refers to investor ownership of net assets of the enterprise, which is equal to the total assets of the enterprise minus its total liabilities, including the primary input actually received at the enterprise from investors, capital accumulation fund, surplus accumulation fund and undistributed profit.

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.

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.

Profit from Sales of Products refers to the profit gained by the enterprises by deducting cost, charges and taxes from the business income of the enterprises obtained in selling products and providing industrial services.

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.

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 as sets (%) =[(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.

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%

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 cost s)× 100%

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 working capital=(sales revenue of products)/(average balance of total working capital)

Ratio of Sales to Gross Output Value reflects the degree at which industrial products are sold. It helps to analyze the linkage between production and sales and the extent of the needs of the society that has been met by the supply of industrial products. It is calculated as follows:

Ratio of Sales to Gross Output Value=[Industrial sales /Gross industrial output value (at current prices)]× 100%

Overall Labour Productivity of Industrial Enterprises reflects efficiency of production and economic results of labour input of enterprises. The formula used is:

Overall labour productivity=(value added of industry) / (average number of staff and workers)