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). Prior to 1984, the rural industry run by villages and cooperative organizations under village was classified into agriculture. Since 1984, it has been grouped into industry.

Types of enterprise registration involved in this yearbook are as the following:

(1) State-owned Enterprises: refer 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. Excluded from this category are sole state-funded corporations in the limited liability corporations.

(2) Collective-owned Enterprises: refer to economic units where the assets are owned collectively and which have registered in accordance with the Regulation of the People’s Republic of China on the Management of Registration of Corporate Enterprises.

(3) Cooperative Enterprises: refer to a form of collective economic units (enterprises) where capitals come mainly from employees as their shares, with certain proportion of capital from the outside, where production is organized on the basis of independent operation, independent accounting for profits and losses, joint work, democratic management, and a distribution system that integrates remuneration according to work with dividend according to capital share.

(4) Joint Ownership Enterprises: refer to economic units established by two or more corporate enterprises or corporate institutions of the same or different ownership, through joint investment on the basis of equality, voluntary participation and mutual benefits. They include state joint ownership enterprises, collective joint ownership enterprises, joint state-collective enterprises, other joint ownership enterprises.

(5) Limited Liability Corporations: refer to economic units established with investment from 2-50 investors and registered in accordance with the Regulation of the People’s Republic of China on the Management of Registration of Corporations, each investor bearing limited liability to the corporation depending on its share of investment, and the corporation bearing liability to its debt to the maximum of its total assets. Limited liability corporations include exclusive state-funded limited liability corporations and other limited liability corporations.

(6) 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 Corporations, with total registered capitals 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.

(7) Private Enterprises: refer to profit-making economic units invested and established by natural persons, or controlled by natural persons using employed labor. Included in this category are private limited liability corporations, private share-holding corporations Ltd., private partnership enterprises and private-funded enterprises registered in accordance with the Corporation Law, Partnership Enterprises Law and Interim Regulations on Private Enterprise.

(8) Other Domestic-funded Enterprises: refer to domestic-funded economic units other than those mentioned above.

(9) Joint-venture Enterprises with Funds from Hong Kong, Macao and Taiwan: refer to enterprises jointly established by invertors from Hong Kong, Macao and Taiwan with enterprises in the mainland of China in accordance with the Law of the People’s Republic of China on Sino-foreign Joint Venture Enterprises and other relevant laws, where the share of investment, profits and risks is stipulated in the contract.

(10) Cooperative Enterprises with Funds from Hong Kong Macau and Taiwan: established by investors from Hong Kong, Macau and Taiwan with enterprises in the mainland of China in accordance with the Law of the People’s Republic of China on Sino-foreign Cooperative Enterprises and other relevant laws, where the investment or provision of facilities, and the share of profits and risks is stipulated in the cooperative contract.

(11) Enterprises with Sole (exclusive) Investment from Hong Kong, Macau and Taiwan: refer to enterprises established in the mainland of China with exclusive investment from investors from Hong Kong, Macau and Taiwan in accordance with the Law of the People’s Republic of China on Foreign-Funded Enterprises and other relevant laws.

(12) Share-holding Corporations Ltd. with Investment from Hong Kong, Macau and Taiwan: refer to share-holding corporations Ltd. established with the approval from the former Ministry of Foreign Trade and Economic Relations in line with relevant state regulations, where the share of investment from Hong Kong, Macau or Taiwan businessmen exceeds 25% of the total registered capital of the corporation. In case the share of investment from Hong Kong, Macau or Taiwan is less than 25% of the total registered capital, the enterprise is to be classified as domestic-funded share-holding corporation Ltd.

(13) Joint-venture Enterprises with Foreign Investment: refer to enterprises jointly established by foreign enterprises or foreigners with enterprises in the mainland of China in accordance with the Law of the People’s Republic of China on Sino-foreign Joint Venture Enterprises and other relevant laws, where the share of investment, profits and risks is stipulated in the contract.

(14) Cooperation Enterprises with Foreign Investment: refer to enterprises jointly established by foreign enterprises or foreigners with enterprises in the mainland of China in accordance with the Law of the People’s Republic of China on Sino-foreign Cooperative Enterprises and other relevant laws, where the investment or provision of facilities, and the share of profits and risks is stipulated in the cooperative contract.

(15) Enterprises with Sole (exclusive) Foreign Investment: refer to enterprises established in the mainland of China with exclusive investment from foreign investors in accordance with the Law of the People’s Republic of China on Foreign-Funded Enterprises and other relevant laws.

(16) Share-holding Corporations Ltd. with Foreign Investment: refer to share-holding corporations Ltd. established with the approval from the Ministry of Foreign Trade and Economic Relations in line with relevant state regulations, where the share of investment from foreign investors exceeds 25% of the total registered capital of the corporation. In case the share of foreign investment is less than 25% of the total registered capital, the enterprise is to be classified as domestic-funded share-holding corporation Ltd.

    State-holding Enterprises   refer to a classification of enterprises of mixed ownership. It means the state-owned asset of total assets is more than that of other owners. The classification shows the status of share held by state-owned economy.

    Light Industry   refers to the industry, which produces consumer goods and hand tools.

    Heavy Industry   refers to the industry which produces capital goods, and provides various sectors of the national economy with necessary material and technical basis.

    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 industrial final products and industrial services in value terms within a certain time.

Value Added of Industry   refers to the final results of industrial trade in money terms during the reference period. The value added is the balance that the total results of industrial production deduct the used or transferred products and their value. It is the newly increased value.

Capital Obtained   refers to capital actually received by the enterprise from investors. It can be further classified by investors as state capital, capital from Hong Kong, Macao and Taiwan and foreign Capital.

Total Assets   refer to all assets which are owned or controlled by enterprises, including circulating assets, long-term investment, fixed assets, intangible assets and deferred assets, other long-term assets, and deferred taxes, etc. The summation of above items is equal to total assets shown in the balance sheets of the enterprises.

    (I) Circulating assets (working capital) refer to assets 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, receivables, advance payment, stock, etc.

(II) Fixed assets refer to the assets with high unit value can keep its original body in use and last for a long period.

    (III) Intangible assets refer to the assets without material form used by enterprises over a long time, such as patents, non-patent technologies, trade marks, copyright, land use right, business reputation, etc.

    Total Liabilities   refer to the debts that enterprises are responsible for repayment, including liquid liabilities and long-term liabilities. Total liabilities correspond to the summation item of liabilities shown in the balance sheets of the enterprises.

(I) Liquid liabilities (also called quick liabilities or immediate liabilities) refer to enterprises total debt payable within an operating cycle of one year or over one year, including short term loans, payables and advance payments, wages payable, taxes payable and profit payable, etc.

(II) Long-term liabilities refers to total debt payable within an operating cycle of one year or over one year, including long-term loans, payable liabilities, long-term payables, etc.

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

    Original Value of Fixed Assets   refers to the original value of all fixed assets owned by industrial enterprises, calculated at the cost paid at the time of purchase, installation, reconstruction, expansion, and technical innovation and transformation of the said assets, which includes expenses on purchase, package, transportation, and installation, etc.

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

Major Business Revenue   refers to the revenue from the sales of products by industrial enterprises and the revenue from services provided and etc.

Major Business Cost   refers to the actual cost of products of industrial enterprises and industrial services provided, etc.

    Tax and Extra Charges on Major Business   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.

Major Business Profit   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 results gained by the enterprises. It is got as using the total revenue taking off related costs and fees. Only if the revenue is more than the costs, the enterprises gain the profits.

Value Added Tax Payable   refers to the amount of the value-added tax, which should be paid by the enterprises in the reporting period.

Total Value of Profit and Tax (Pre-tax Profits)   refers to the sum of the total profits, products sales tax and surcharges and the value added tax payable of industrial enterprises. It is also called Pre-tax profits.

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.

Value Added Rate of Industry   refers to the ratio of value added of industry in a given period to the gross output value in the same period, which reflects the economic efficiency of cutting down the intermediate input and is calculated as follows:

    Value Added Rate of Industry (%) =Value Added of Industry (at Current Prices)/Gross Output Value (at Current Prices) ×100%

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%

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%

Circulating Rate   refers to the rate of the circulating funds to the circulating liabilities. It shows the enterprise’s guaranteed solvency that the cash changed from circulating funds in a short time to pay for circulating liabilities. The formula is: Circulating Rate = Circulating Funds / Circulating Liabilities

Speed Rate   refers to the rate of the speed funds to the circulating liabilities. The formula is:

Speed Rate = Speed Funds / 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