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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 (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 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. Units of industrial statistics survey corporate industrial enterprises with independent accounting system.

Corporate industrial enterprises with independent accounting system refer to enterprises engaging in industrial production activities, which meet the following requirements: they are established legally, having their own names, organizations, location, able to take civil liability; they possess and use their assets independently, assume liabilities, and are entitled to sign contracts with other units; they are financially independent and compile their own balance sheets.

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 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 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. (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, 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.

Industrial Enterprises above Designated Size

refer to industrial enterprises as legal person with annual business revenue of over 20 million yuan.

Large, Medium, Small, Mini-sized Enterprises

Industrial enterprises are classified into large, medium, small, mini-sized enterprises according to employment personnel and sales revenue in accordance with the regulation of Classification of Large, Medium, Small, Mini-sized Enterprises on Statistics in 2011. The standard of classification as following:

 

 

Gross Output Value of Industry

refers to 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.

Total Assets

refer to all resources formed by transaction or other activities, which are owned or controlled by enterprises and expected to bring economic benefits to the enterprises. Classified by the degree of liquidity, total assets include working capitals and immovable assets.

Total Working Capitals

the assets should be classified into working capital if meeting one of the following conditions: (1) expected to be liquidated, sold or consumed in one normal operating cycle, mainly including inventory, account receivable, etc.; (2) owned for transaction purpose; (3) expected to be liquidated in one year (including one year) since balance sheet date; (4) cash or cash equivalent without limited ability of exchanging other assets or paying debts in one year from balance sheet date, including monetary funds, note receivable, accounts receivable, inventory and other items.

Fixed Assets

refer to the physical assets owned over one accounting year for the purpose of production, providing services, rent or business management, including the use of more than one year of housing, buildings, machines, machinery, transport equipment and other production and business-related equipment, apparatus, tools, etc.

Revenue from Principal Business

refers to revenues accepted by enterprises from the sales of products, labour services provided and etc. in the principal business.

Cost of Principal Business

refers to total costs for enterprises to operate the principal business.

Tax and Extra Charges of Principal Business 

refer to the tax and charges including the business tax, consumption tax, city maintenance and construction tax, resources tax, land increasing value tax and extra charges for education and etc. in the operation of principal business.

Total Pre-tax Profits

refer to the business results of enterprises in certain accounting period, that is the profits gained from the revenues after deducting the costs, which means the final achievements in the reference period. To the enterprises implemented the Regulation of Accounting Standards for Business Enterprises in 2006, total pre-tax profits equals to business profit add non-operating revenue and minus non-operating expenditures. To the enterprises not implemented, total pre-tax profits equals to business profit add investment income, subsidies, non-operating revenue and minus non-operating expenditures.

Total Profits and Taxes

refers to the sum of the total profits, tax and extra charges of principal business and the value added tax payable of industrial enterprises.

Proportion of Products Sold

reflects the actual sale of industrial products, analyzing the production-selling and supply-demand relations. It is calculated as:

 

Proportion of Products Sold (%) =

       Value of Industrial Sales / Gross Industrial Output Value (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 Value (%) =

       Total  Pre-tax  Profits + Total Taxes + Interest Payment  ��100%

       Average Assets      

 

In the above formula, total taxes is the sum of tax and extra charges of principal business 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:

 

Ratio of Debts to Assets (%) =Total Debts / Total Assets��100%

 

Number of Times of Turnover of Working Capitals

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:

 

Turnover of Working Capital =     Revenue from Principal Business / Average Balance of Total Working Capital

 

In the above formula, average balance of total working capital refers to the arithmetic mean of the sum of circulating funds at the beginning and at the end of the reference period.

Ratio of Pre-tax 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:

 

Ratio of Profits to Total Industrial Cost (%) =

       Total  Pre-tax  Profits / Total Costs��100%

 

Total costs in the above formula is the sum of cost of products sold, marketing cost, management cost and financial cost.