INDUSTRY

Industryrefers to the material production sector which is engaged in extraction of natural resources and proce ssing and reprocesseing of minerals and agricultural products, including ( 1)extraction of natural resources, such as mining, salt production, logging ( but not includinghunting and fishing); (2) processing and reprocessing of farm and sideline produces, such as ricehusking, 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 gasproduction and electricity generation and supply; (4) repairing of industrial products such as therepairing of machinery and means of transport (including cars).

Prior to 1984, the rural industry run by villages and cooperative organiza tions under village wasclassified into agriculture. Since 1984, it has been grouped into industry.

(1)State-owned and state holding majority shares enterprises refer to state-owned enterprises and the enterprises which state holds majority shares. State-owned enterprises(industry ownership by the whole people or state-run industry)refers 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, including the state-owned enterprise, sole stae-funded corporation and state-owned joint ownership enterprise.Joint state-private industries and private industries, which existed before 1957,have been transformed into state-run industrics. Since 1992,those were named state-owned industries. Statistics on these enterprises has been included in the state-industries since 1957 when separation of data was no longer necessary.

(2)Collective-owned Enterprises refers to industrial enterprises where the means of production are owned collectives and some enterprises which were formerly owned privately but have been registered in industrial and commercial administration agency as collective units through raising fund from the public.

(3)Share-holding Corporations Ltd. Refer to economic units registered in accordance with the Regulation of the People'sRepublic of China on the Management of Registration of Corporate Enterprises, with total registered capitals divided into equal shares and raised throught issuing stocks. Each investor hears limited liability to the corporationdepending on the holding of shares, and the corporation bears liability to its debt to the maximum of its total assets.

Light Industry refers to the industry that produces consummer 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 goo ds,and provides various sectorsof 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 sector s 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-builiding 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 rpeairing trades which are engaged primarity in repairing products of heavy industry are classified into heavy in dustry while these engaged in repairing products of light industry are classified into light indrstry.

Gross Industrial Output Value is the total volume of indrstrial products sold or available forsale in value terms which reflects the total achievements and overall scale of industrial production during a given period. It includes the value of the finished products, which are not tobe further processed in the enterprises and have been inspected,packed and prt in storage, the value of industrial services rendered to other units and the changes in the value of the semi-finihed products and products in process between the behinning and closing of th e period( only theenterprises with long ptoduction cycle are required to calculatc the changes).The gross industrial output value is calculated with "factory method".Nodouble calculations are to be made within the same enterprise.However,double counting does occur among different enterprises.

Output value of light and heavy industries is also classified with the "factory" method. Undernormal conditions,if the major products of an industrial enterprise belong to light industry products, the gross output value of that enterprise is classified whohhy into light industry; thesame principle applies to heavy industry.

Value Added of Industryrefers to the final results of industrial production of the industrial trade in money terms during the reference pereod.

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

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

Working Capital (Circulating Assets) refers to assets which can be cashed in or spent or consumed in an operating cycle of one year or over one year, which includes cash, various deposits, shortterm investment, and receivable payments,and advance payments, stock, etc.

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 alsocalled pre-tax profits.

Ration of Pre-Tax Profits to Assets refers to the ration of pre- tax profits realized in a givenperiod to total assets (net fixed assets plus working capital) , which reflects the economic efficiency of the assets utilization and is calculated as follows:

Ration of Profits to Total Industrial Costs refers to the ratil of profits realized in a given period to the total costs in the same period, which reflects the economec efficiency of input cost and is calculoated as follows:

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

Number of Times of The Turnover or Working Capital refers to the number of times of turnover of work in capital in a given period of time, which reflects the speed of the turnover of working capital and is calculated as follows:

Sales Rate of Industrial 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:

Sales Revenue of Industrial Productsrefers to the revenre from the sales of products by industrial enterprises and the revenre from services provided and etc.

Sales Cost of Industrial Products refers to the actual cost of products of industrial enterprises and industrial enterprises and industrial services provided, etc.

Tax and Extra Charger on Sales of Products refer to the tax on c ity maintenance and construction,consumption tax,resources tax and extracharges for education, which should be borne by the enteprises in selling products and providing industrial services.

Sales Profit of Products refers to the profit gained by the enter prises by deducting cost, chargesand taxes from the business income of the enterprises obtained in selling prod ucts and providing industrial services.

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 eterprises in the reporting period.

Ratio of Per-Tax Profits to Gross Output Value refers to the rat io of the total amount of pre -tax profits gained (including total profits, sales tax and extra charges of prod ucts as well as thevalue added tax payable) in the reporting period to the gross output value in th e samd period ( theratio is expressed in percentage). The formula is as follows:

Overall Labour Productivity of Industrial Enterprises refers to the average output per staff and worker 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 labour productivity. The formula used is:

For the purpose of comparison of the overall labour productivity among different years, the data on the overall labour productivity of the years prior to 1990 have beeh adjusted on the bases of 1990 constant prices.

Capital refers to the corporation's capital registered in the departments of administration for industry and commerce. According to the different nature of investors, corporations' capital can be divided into state capital, legal person's capital, personal capital, foreign capital, etc. Total capital includes total registered capital of all investors in the corporation.

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

(1) 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 kings of deposits,short term investmint, receivables,advance payment, stock, etc.

(2) Fixed assets refer to the net value of fixed assets, clearance of fixed as sets, project under construction, fised assets losses in suspense. These are corporations' fund holdings.

(3) Intangible assets refer to the assets without matereial form used by enter prises over a longtime, such as patints, non-patent technolohies, trade marks, copy right, land use right, business reputation, etc.

Total Liabilities refer to the debts that enterprises are respon sible for repayment, including liquid liabilitier, long-term liabilities and deferred taxes, etc. Total liabilities correspond to the summation item of liabilities shown in the balance sheets of rhe enterprises .

(1) Liquid liabilities ( also called quick liabilities or immediate liab ilities) refer to enterprises total debt payable within an operating cycle of one year or over on e year, includingshort term loans, payables and advance payments,wages payable, taxes payable and profit payable,etc.

(2) Long-term liabilities refers to total debt payable within an operating cycle of one year orover one yera, including long-tern loans, payable liabilities, long-term payables, etc.

Creditors' Equityrefers 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. It is the stock nolders' equity in stock companies.