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 grain and oil processing, food processing, silk reeling, spinning and weaving and leather making; (3) processing and reprocessing of mineral products, such as steel making, iron smelting, chemicals manufacturing, petroleum processing, machine building, timber processing, and production and supply of electricity, gas and water; (4) repairing and renovating of industrial products such as the machinery.

In industrial surveys, the units of enquiry are industrial corporate units.

Industrial corporate units refer to corporate units engaging in industrial production and operation activities, which meet the following requirements: (1) They are established legally, having their own names, organizations, location, and are able to take civil liability independently; (2) They possess (or are authorized to use) assets independently, assume liabilities and are entitled to sign contracts with other units; (3) They have accounts including the balance sheets or can compile the accounts according to the need.

Gross Industrial Output Value   refers to the total volume of final industrial products produced and industrial services provided in this year.

(1)Principles for calculations

①Statistics 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.

②Determination 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 semi-finished products to sell, these intermediate products are considered as the final products of the enterprise.

 Finished and semi-finished products which transfer in the workshop can only calculate the difference value between the end and the beginning.

③Gross 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.

(2) Content

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.

①Value 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 does not include the value of finished products (semi-finished products) that are produced using the materials from the clients who place the orders.

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.

②External processing fee income: refers to the processing fee income of the industrial product processing undertaken by the enterprise within this year (including processing and producing with the supplied materials of the ordering party);Income from processing fees charged for repairing foreign industrial products and income from processing, repairing and equipment installation provided by domestic non-industrial sectors.External processing fee income is calculated at the price excluding VAT payable (output tax).

If the income from external processing is paid beyond one year，Enterprises which the share of income from processing service is significant should adjust and record actual income from external processing this year.

③Value of change in semi-finished products between the end and the beginning of the reference period. 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.

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. If the value of the end is less than the beginning，the index is negative and not dealt as zero.

(3) Method of calculation

①All products produced using own materials are to be calculated with full value in reporting the gross industrial output value irrespective of the complexity of production.

②For processing of incoming materials, the processing enterprises only charge the processing fee, then the processing enterprises will calculate the total industrial output value according to the processing fee settled financially, which does not include the value of the incoming materials from the orderer.

③The value of change in semi-finished products should be included in the gross industrial output value if it is included in the accounting record of the enterprise, otherwise it should not be included.

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 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 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-holding Enterprises   cover the original state-owned enterprises and state-holding enterprises. They are classified according to the actual investment made by the contributor of state-owned part in the paid-in capital of the enterprises, or the degree of control or dominance of the contributor on the assets of the enterprises. The following cases are regarded as state-holding: (1) Absolute state-holding in which the contributors of state-owned parts possess more than 50% of all the paid-in capital (stocks) of the enterprises; (2) Relative state-holding in which the contributors of state-owned parts possess no more than 50% of the paid-in capital (stocks) of the enterprises, but more than that of any other contributors; or Agreed state-holding in which the contributors of state-owned parts possess no more than other contributors but have actual control over the enterprises according to agreements; (3) In the case both contributors possess 50% and it is not clear which one is in absolute holding position, the enterprise is regarded as state-holding enterprise if one of the contributor has state-owned elements.

For explanation of types of registration covered in this chapter, please refer to General Survey.

Value of Export Delivery   Refers to the value of the products exported by the industrial enterprises themselves (including those sold to Hong Kong, Macao, Taiwan) or handed over to the foreign trade department, as well as the value of the products produced by the foreign businessmen, such as samples, processing with supplied materials, assembling with supplied parts and compensation trade.

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 capital, trading financial assets, notes receivable, accounts receivable, advanced payments, other receivables 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 from the year-end figures of total assets in the Balance Sheet of accounting records.

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 Balance Sheet; (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 the Balance Sheet. Included are monetary capital, notes receivable, accounts receivable and inventories. Data on this indicator can be obtained from the year-end figures of total current assets in the Balance Sheet of accounting records.

Total Liabilities   refers to the current obligations of the enterprise formed in the past transactions or events that are expected to cause economic benefits to flow out of the enterprise. Including bank loans, borrowings, accounts payable, wages payable to employees, employee benefits payable, taxes payable and other debts that enterprises are responsible for repaying. According to the closing balance of the "total liabilities" item in the accounting "balance sheet". Liabilities are generally divided into current liabilities and non-current liabilities according to the length of the repayment period.

Creditors' Equity   refers to the remaining equity enjoyed by the owner after deducting liabilities of corporate assets. The company's owner's equity is also called shareholders' equity. Including paid-in capital, capital reserves, surplus reserves, undistributed profits, etc. According to the ending number of the "total owner's equity" item in the accounting "balance sheet".

Business Revenue  refers to the total revenue recognized by an enterprise in its principal business and other business operations. Business revenue includes " revenue from principal Business" and " revenue from other business". It comes from this year’s cumulative report of "business revenue" items from the "income statement".

Business Cost  refers to the total cost incurred by an enterprise in its principal business and other business operations. It includes various expenditures incurred by enterprises (units) in their daily activities of selling goods and providing labour services during the reporting period. It includes "Cost of principal business" and "Cost of other business". It comes from this year’s cumulative report of "operating cost" items from the "income statement".

Taxes and surcharges  refers to consumption tax, urban maintenance and construction tax, resource tax, environmental protection tax, education surcharge, property tax, land use tax, vehicle and vessel use tax, stamp tax and other relevant taxes payable by enterprises for their production and business activities according to the tax law.The current year's accumulative count is reported according to the items of "taxes and Surcharges" in the accounting "income statement".

Profit from Business    refers to the profits obtained by an enterprise from its production and business operations. The current year's cumulative counting is reported in accordance with the operating profit item in the accounting income statement.

Value Added Tax Payable   refers to a type of turnover tax levied by an enterprise on the basis of taxation regulations based on the value-added amount of sales of goods, services, intangible assets, real estate, or the provision of processing, repair and replacement services, and the amount of goods imported. It is calculated as follows:

Value added tax payable=tax on sales-(tax on purchases-transferred tax on purchases) - Tax credits-tax cut +export rebate

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 reference period. Data are obtained from the amount of total profits in the profit statement of the accounting record of enterprise.

Total Value of Profit and Tax (Pre-tax Profits)   Refers to the sum of corporate profits, taxes and surcharges, and VAT payable.

Original value of fixed assets   refers to the cost of fixed assets, including the total amount of expenditures incurred by an enterprise in the acquisition, self-construction, installation, alteration, expansion and technical renovation of a fixed asset.

Net fixed assets  refers to the original value of fixed assets minus accumulated depreciation and fixed assets impairment provision.

Industrial Comprehensive Index of Economic Efficiency   is a special kind of relative figure to comprehensively measure overall economic efficiency of regional industry, showing the quality of industrial economic efficiency of the reference period. Industrial comprehensive index of economic efficiency is calculated with 7 items of ratio of total assets to industrial output value, ratio of creditors' equity of current year to that of previous year, ratio of liabilities to assets, turnover ratio of output value, circulating funds, ratio of profits to cost, overall labor productivity, ratio of sales to products. The actual figure of every indicator above is divided by responding national standard numerical value, and the results multiply correlative weight coefficients, then the total number is divided by general weight coefficient. The index comprehensively reflects the changes of regional industrial economic efficiency in static and dynamic status, eliminating the incomparable factors at a certain extent.

Ratio of Total Assets to Industrial Output Value   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 Total Assets to Industrial Output (%) = [(Total profits + Total taxes + Interest payment) / average assets] × 100%

Capital Maintenance and Appreciation Rate   reflects the changes of an enterprise’s net assets. It epitomizes the growth capability of an enterprise. Its calculating formula is:

Capital Maintenance and appreciation rate = Ownership equity at the end of the reporting period/Ownership equity at the same period of the previous year.

Ratio of Liabilities 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 liabilities to assets (%) = Total liabilities/total assets×100%

Turnover Ratio of Circulating Funds   refers to times of turnover of circulating funds in a given period of time, which reflects the speed of the turnover of working capital and is calculated as follows:

Turnover Ratio of Circulating Funds (%) = Sales Revenue of Products/Average Balance of Total Circulating Funds×100%

Ratio of Profits to 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 Cost (%) =Total Profits/Total Costs×100%

Overall Labor Productivity   refers to the average output per employed person in industrial enterprises in value terms. At present, the value added and the average number of staff and workers of an industrial enterprises in a given period are used to calculate the overall labor productivity. The formula used is:

Overall Labor Productivity = (Value Added of Industry) / (Average Number of Staff and Workers)

Ratio of Sales to Products   refers to the ratio of total sales in a given period to the gross output value in the same period, which reflects the extent of industrial output sold and is calculated as follows:

Ratio of Sales to Products (%) =Total Sales (at Current Prices) / Gross Output Value (at Current Prices) ×100%

Ratio of Profits to Sales   refers to the ratio of total profits to the sales revenue in a given period and is calculated as follows: Ratio of Profits to Sales (%) =Total Profits /Sales Revenue×100%

Ratio of Accumulated Capital to Original Capital   refers to the ratio of the increased volume of creditors’ equity to the creditors’ equity at the year’s beginning. The formula used is:

Ratio of Accumulated Capital to Original Capital (%) = Increased Volume of Creditors’ Equity / Creditors’ Equity at Year’s Beginning×100%

Current Ratio   refers to the ratio of the circulating assets to the circulating liabilities, i.e. the amount of circulating assets as the guarantee to pay off each yuan of circulating liabilities, which reflects the ability of the enterprise to pay off the due circulating liabilities with the circulating assets realizable in a short period of time. The formula is:

Current Ratio (%) = Circulating Assets / Circulating Liabilities

Quick Ratio   refers to the ratio of quick assets to circulating liabilities of the enterprise, and is calculated as the follows:

Quick Ratio = Quick Assets / Circulating Liabilities

Ratio of Equity to Production   refers to the ratio of total liabilities to creditors’ equity. It is the sign of financial stability of the enterprises, and also called ratio of total liabilities to total capital. The formula is:

Ratio of Equity to Production = Total Liabilities / Creditors’ Equity

Annual Average Employees   refers to the number of persons engaged in the enterprise production and operation activities in the reporting period, which are actually owned by the enterprise.

Standards for dividing large, medium, small and micro industries in industrial enterprises:

At the end of the period, the number of employees is 1,000 or more, and the industrial enterprises with operating income of 40 million yuan or more are large enterprises; the number of employees at the end of the period is 300 or more and less than 1,000, and the operating income is 20 million or more and less than 40,000 Of industrial enterprises are medium-sized enterprises; industrial enterprises with a number of employees of 20 or more and less than 300 at the end of the period, and operating income of 3 million yuan or more to less than 20 million are small enterprises; Industrial enterprises with an income of less than 3 million yuan are micro-enterprises.