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, and logging (but excluding 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; and production and supply of electricity, water and gas; (4) repair and renovation of industrial products, such as the repair of machinery and means of transport (including cars).
Prior to 1984, industrial enterprises run by villages and cooperative organizations under village were classified into agriculture. Since 1984, these enterprises have been grouped into industry.
Units of Industrial Statistics Survey These are classified into two categories: corporate industrial enterprises with independent accounting system and industrial establishments.
(1) Corporate industrial enterprises with independent accounting system refer to enterprises engaging in industrial production activities which simultaneously meet the following requirements: ①They are established legally, having their own names, organizations, location, able to take civil liability; ②They possess and use their assets independently, assume liabilities, and are entitled to sign contracts with other units; ③They are financially independent and compile their own balance sheets.
(2) Industrial establishments refer to economic units located in one single place and engaged entirely or primarily in one kind of industrial production activity, including units engaged in main business activities (industrial production activities) under industrial enterprises with independent accounting system and units engaged in industrial production activities under non-industrial enterprises (formerly industrial establishments with dependent accounting system). Industrial establishments generally meet the following requirements simultaneously: ① They have each one location and are engaged entirely or primarily in one kind of industrial activity each; ② They operate and manage their industrial production activities separately; ③ They have accounts of income and expenditure separately.
Enterprises covered in this Yearbook include the following categories by their registration:
(1) State-owned and State-controlled Enterprises refer to state-owned enterprises plus state-controlled enterprises. State-owned enterprises (originally known as state-run industrial enterprises or industrial enterprises owned by the whole people) are non-corporate economic entities registered in accordance with the Regulations of the People’s Republic of China on the Management of Registration of Corporate 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 later transformed into state-run industries and then into state-owned industries in 1992. Where no separate statistics on these enterprises are listed, they are included in state-owned enterprises. State-controlled enterprises are a subcategory 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 subcategory illustrates the control of the state over a particular industry.
(2) Collective-owned Enterprises refer to economic entities registered in accordance with the Regulations of the People's Republic of China on the Management of Registration of Corporate Enterprises, where assets are owned by collectives. Collective enterprises constitute an integral part of the socialist economy with public ownership. They include urban and rural enterprises with collective investment, and some enterprises registered inindustrial and commercial administration agencies as collective units where funds are pulled together by individuals who voluntarily give up their right of ownership.
(3) Share-holding Corporations Ltd. refer to economic units registered in accordance with the Regulations 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 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.
(4) Enterprises with Funds form Hong Kong, Macao and Taiwan refer 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.
(5) 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.
Share-holding Corporations Ltd. with Foreign Investment refer to share-holding corporations Ltd. established with the approval of the Ministry of Foreign Trade and Economic Cooperation (formerly 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.
Share-holding Corporations Ltd. with Investment from Hong Kong, Macau and Taiwan refer to share-holding corporations Ltd. established with the approval of the Ministry of Foreign Trade and Economic Cooperation (formerly 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.
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.
(6) Enterprises categorized as “Others” in this Yearbook refer to other types of industrial enterprises (units) except state-owned enterprises, collective-owned enterprises and individual operation, including joint-operation enterprises, private enterprises, share-holding companies, limited liability corporations, foreign-funded enterprises (Sino-foreign joint ventures, Sino-foreign cooperative enterprises and enterprises with sole foreign investment), enterprises with investment from Hong Kong, Macao and Taiwan (joint ventures with enterprises in the mainland, cooperative enterprises with enterprises in the mainland and enterprises with sole investment from Hong Kong, Macao and Taiwan) and other enterprises.
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 and sports articles, 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, repairing trades engaged primarily in repairing products of heavy industry are classified into heavy industry, while those engaged in repairing products of light industry are classified into light industry.
Gross Industrial Output Value refers to the total volume of industrial products sold or available for sale in monetary terms during a given period, which reflects the total achievements and overall scale of industrial production during a given period. It includes the value of the finished products in the enterprises, which are not to be further processed and have been inspected, packed and put in storage (where applicable), the income from external processing and the value gain of semi-finished products at the end of the reference period over the beginning. The gross industrial output value is calculated by the factory approach, i.e. the whole industrial enterprise is regarded as the basic accounting unit in calculating the gross industrial output value. No double calculations are to be made within the same enterprise and the output value of different workshops (branch factories) should not be added. However, this approach does not exclude the possibility of double calculations between enterprises, sectors and regions.
Output value of light and heavy industries is also classified by the factory approach. Under normal conditions, if the major products of an industrial enterprise belong to light industry products, the gross output value of that enterprise is classified wholly into light industry; the same principle applies to heavy industry.
Sales Value of Industry (Current Price) refers to refers to the total value of industrial products sold or industrial services provided in monetary terms within the current year. It includes:
(1) Sales Value of Finished Products. Sale value of finished products refers to the total value of finished and semi-finished products sold within the reporting period (including those produced within and outside the period). It equals the actual sales volume of products sold within the reporting period timing the actual average sales price (excluding value added or sales tax). It includes the equipment made by the enterprise itself, as well as the finished products provided to the projects under construction, non-industrial departments and welfare department, and excludes the value of finished or semi-finished products of external processing with supplied materials that produces only processing charges.
(2) Income from External Processing: refers to income from contracted external processing of industrial products (including processing of industrial products using materials from the clients), and the income from industrial repairing work provided to other units. Income from external processing is calculated using information from the item “products sales income” in the enterprise accounting at the prices excluding value-added tax.
For an enterprise whose main business is external processing and the charges of external processing constitute a large proportion of its income, in case of cross-year payment, the income of external processing charges shall be adjusted and the actual income of external processing charges of the current year shall be recorded to ensure the accuracy of the coverage of gross industrial output.
Export Delivery Value refers to the value of the products that an industrial enterprises have delivered to export units or have exported on its own or per procurationem (including those sold to Hong Kong, Macaw and Taiwan), and the value of the products from processing and compensation trades(processing with given materials or samples, assembling supplied components). In calculating the export delivery value, the foreign exchanges shall be converted into yuan at current exchange rates.
Value-added of Industry refers to the final results of industrial production of industrial enterprises in monetary terms during the reference period. It equals to the total achievements of all industrial production minus the goods and services consumed or transferred during the industrial production of enterprises, in other terms the newly added value during the industrial production of enterprises. It is calculated by the following two approaches:
a) The production approach. The value added is calculated by taking the value of industrial intermediate input out of the final value of products and labor services that comes from industrial production. The formula used is:
Value-added of industry = gross industrial output－industrial intermediate input + value-added tax
b) The income approach. It is calculation of the final value of industrial activities by approaching the primary distribution of the primary income of industrial production. The formula used is:
Value-added of industry = depreciation of fixed assets + remuneration of laborers + net production tax+ operating surplus
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. It is recorded at the item of “Total Working Capital” of the “Balance Sheet”.
Account Receivable: refers to accounts receivable from purchasers or receivers due to the delivery of goods, products or services. The index is recorded in accordance with the year-end figure of Account Receivable of the balance sheet.
Inventory: refers to various assets stored by an enterprise during production and operation for the purpose of sale or use, including raw materials, circulation materials, wrappages, low-value consumables, work-in-process, self-made semi-finished products and finished products.
Finished Products: refers to the products that have completed the entire production process at the end of the reference period and are ready or sale.
Fixed Assets: refers to houses, buildings machines, vehicles and other equipment, appliances and tools related to production and operation that have been used for more than one year. It also includes articles that are not major equipment of production or operation, but the value of which exceeds 2000 yuan and the service period of which exceeds 2 years.
Depreciation of Fixed Assets: refers to the value that has been transferred to products as a result of the depletion of fixed assets. In general, it is calculated in accordance with the original price of the fixed assets (or the book value of the fixed assets in case of calculation by the double declining balance method) and the depreciation rate. “Accumulated Depreciation” refers to the accumulated depreciation of fixed assets over the years calculated by an enterprise at the end of the reference period.
Net Value of Fixed Assets: refers to original value of fixed assets minus accumulated depreciation.
Total Assets refer to all economic resources, in monetary terms, that 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.
Intangible Assets refer to the assets without material form used by enterprises over a long time, including patents, non-patent technologies, trade marks, copyright, land use right and business reputation, etc.
Total Liabilities refer to payable liabilities of enterprises that have to be repaid in terms of money, assets or labor services. In terms of payment, it can be classified as liquid liabilities, long-term liabilities and deferred taxes,etc.
Total Liquid Liabilities refer to total debt payable by enterprises within an operating cycle of one year or over one year, including short-term loans, payables and advance payments, wages payable, taxes payable and profits payable, etc.
Total Long-term Liabilities refer to total debt payable by enterprises within an operation cycle of one year or over one year, including long-term loans, payable liabilities and 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.
Paid-in Capital refers to the capital (or share) actually invested by the investors of an enterprise, including currency, goods, intangible assets, etc. Classified by the investing bodies, paid-in capital includes state capital, collective capital, corporate capital, individual capital, Hong Kong, Macaw and Taiwan capital and foreign capital.
State Capital refers to the investment in an enterprises made by government departments or agencies under government’s jurisdiction on behalf of state.
Collective Capital refers to the collective capital contributed by work staff or other institutions to support an enterprise.
Corporate Capital refers to the investment in an enterprise made by a corporate body out of its legal disposable assets.
Individual Capital refers to the capital actually invested in an enterprise by an individual.
Hong Kong, Macaw and Taiwan Capital refers to the capital actually invested in an enterprises by investors from Hong Kong, Macaw and Taiwan.
Foreign Capital refers to the capital actually invested in an enterprise by a foreign investor.
Business Revenue refers to the revenue from the sales of products (or commodities) and from rendering of industrial services by industrial enterprises. It is classified into two categories: principal business revenue (or basic business revenue) and other business revenue (or additional business revenue).
Principal Business Revenue refers to the revenue from the principal business, including the sales of products and from rendering of industrial services by industrial enterprises.
Principal Business Cost refers to the actual cost of products sold and industrial services provided by industrial enterprises.
Tax and Extra Charges on Principal 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.
Principal Business Profits refer to the main business revenue of the enterprises from the sales of products and from rendering of industrial services minus cost, charges, and taxes.
Business Cost refers to the costs from sales of commodities and the operational costs of sales agencies (including sales stores and service centers, etc.), including the costs of transport, loading, packaging, advertising, business operation, travelling, reception, social security, etc..
Management Cost refers to the costs of organizing and managing enterprise operation, including the operational cost of the board of directors and the executive body in management that shall be borne by the enterprise. Management costs include staff wages, welfare, the costs of administration, meeting, printing, water and electricity, social security, reception, technology transfer, etc.
Financial Cost refers to the cost from raising fund for production and operation, including expenditure of interests, loss of momentary exchange and related charges.
Business Profits refers to the profits from production and operation. It equals to principal business profits plus other business profits minus management costs and financial costs.
Total Profits refer to the profits gained by the enterprises.
Value-added Tax Payable refers to the amount of the value-added tax which should be paid by the enterprises according to tax laws during the reference period of selling goods or providing such services as processing, repairing or assembling that add value to goods. The formula used is:
Value-added Tax Payable=Output Tax－(Input Tax－Input Tax Returns)
－Export Deduct Domestic Sales Goods Tax－Tax Deduction+ Export Tax Refund
Amount of Input Tax at Current Year refers to the VAT an industrial enterprise pays for purchasing goods or receiving taxable services within the reference period, which is allowed to be deducted from the amount of output tax.
Amount of Output Tax at Current Year refers to the VAT an industrial enterprise pays for selling goods or providing taxable services within the reference period.
Total Pre-Tax Profits refers to the sum of total profits, sales tax as well as additional and payable value-added taxes.
Comprehensive Index on Economic Benefit of Industry refers to the current comprehensive evaluation of the general level of economic benefit of industry and the performance of industrial economy. It is calculated by a selection of representative indicators on economic benefit divided by the standard value of each indicator respectively, multiplied by the weight of each indicator, summed and divided by total weight. The formula used is:Weight)÷Total Weight where Total Weight = 100
Ratio of Total Assets to Industrial Output Yalue refers to the profit-making capability of all assets of the enterprise. As a core indicator for the evaluation and assessment of the profit-making potential of the enterprise, it is a focused reflection of the performance and management efficiency of the enterprise. This ratio is calculated as follows:where Total Taxes are the sum of tax and extra charges on the sales of products and value-added tax payable; and Average Assets are the arithmetic mean of beginning assets and ending assets.
Ratio of Capital Maintenance and Appreciation is an important indicator of the changes of net assets of an enterprise and a focused reflection of the development capability of enterprises. It is the ratio of total creditors’ equity at the end of the reference period to that of the same period of the previous year, calculated as follows:where Creditors’ equity is equal to the total assets of the enterprise minus its total liabilities.
Assets-Liability Ratio 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:where both assets and debts are figures at the end of the reference period.
Number of Times of Turnover of Circulating Funds refers to the number of times in which turnover of circulating funds is completed in a given period of time, which reflects the speed of the turnover of circulating funds. It is expressed as times of turnover within a year and is calculated as follows:

Ratio of Profits to Industrial Costs refers to the ratio of profits realized in a given period to the total production costs of industrial enterprises in the same period, which also reflects the economic benefit attained by the enterprises from reduced costs. This ratio is calculated as follows:
where Total costs are the sum of cost of products sold, marketing cost, management cost and financial cost.
Value-added Labor Productivity reflects the production efficiency of the enterprise and economic benefit of its labor input. It is usually expressed as the industrial value-added created by an average member of an industrial enterprise in a year. The formula used is:

Average Number of Staff and Workers refers to the average number of all employed persons by an industrial enterprise within the reference period. The formula used is:

Or
Proportion of Products Sold refers to the sales of industrial products to the gross industrial output value, and is used to analyze the linkage between production and sales and the extent to which the needs of the society are met by the supply of industrial products. It is calculated as follows:

