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).
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.
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 China on the Management of Registration of Legal Enterprises, where all assets are owned by the State. Included in this category are State-owned enterprises, State-funded corporations and State-owned joint-operation enterprises. Joint State-private industries and private industries, which existed before 1957, were transformed into state-run industries since 1957, and into State-owned industries after 1992. Statistics on those enterprises are included in the State-owned industries instead of being grouped them separately. State-holding enterprises are a sub-classification of enterprises with mixed ownership, referring to enterprises where the percentage of State assets (or shares by the State) is larger than any other single share holder of the same enterprise. This sub-classification illustrates the control of the State over a particular 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-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
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.
Working Capital refers to capital that an enterprise can cash or use during one year or one production cycle that may exceed one year, including cash and savings deposits of various forms, short-term investment, money receivable and prepaid money, inventories, etc.
Annual Average Value of Working Capital refers to the average value of all working capital of the enterprise during the reference period.
Original Value of Fixed Assets refers to the total value, in monetary terms, that an enterprise spent on fixed assets, through construction, purchase, installation, transformation, expansion or technical upgrading. Generally, it covers cost of purchase, packing, transportation and installation, etc.
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:
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:
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 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:
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:
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:
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:
