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
Collective-owned
Enterprises refer to economic entities registered
in accordance with the Regulation of the People’s Republic of
Cooperative
Enterprises
refer to economic units set up on a cooperative basis, with funding
partly from employees of the enterprise and partly from outside investment,
where the operation and management is decided by all the members who also
participate in the production, and the distribution of income is based both on
work (labour input) and on shares (capital input).
Joint
Ownership Enterprises refer to economic units that are established by joint investment by two
or more corporate enterprises or institutions of the same or different types of
ownership on voluntary, equal and mutual-beneficial basis. They include:
a) State-owned joint-operation enterprises
(joint operation between State-owned enterprises);
b) Collective joint-operation enterprises
(joint operation between collective enterprises; and
c) State-collective joint-operation
enterprises (joint operation between state and collective enterprises).
Limited
Liability Corporations refer to economic units
registered in accordance with the Regulation of the People’s Republic of China
on the Management of Registration of Corporations, with capital from 2 to 49
investors, each investor bears limited liability to the corporation depending
on his/her holding of shares, and the corporation bears liability to its debt
to the maximum of its total assets.
Limited liability corporations include state
sole funded corporations and other limited liability corporations.
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 capital divided into equal shares and raised through issuing stocks.
Each investor bears 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.
Private
Enterprises refer to economic units invested or
controlled (by holding the majority of the shares) by natural persons who hire labours for profit-making activities. Included in this category
are private limited liability corporations, private share-holding corporations
Ltd., private partnership enterprises and private sole investment enterprises
registered in accordance with the Corporation Law, Partnership Enterprise Law
and Tentative Regulation on Private Enterprises.
Enterprises
with Funds from 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
Foreign
Funded Enterprises refer to all industrial enterprises registered as the joint-venture,
cooperative, sole (exclusive) investment industrial enterprises and limited
liability corporations with foreign funds.
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.
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:
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 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:
