Industrial profits increased in the first six months of 2018

By the end of June, the total volume of receivable accounts for industrial enterprises above designated hit 13.7 trillion yuan, went up by 11.7 percent year-on-year. The total value of finished products for industrial enterprises accounted for 4,118.76 billion yuan, increased by 8.3 percent.

In the first six months, the costs for per-hundred-yuan turnover of principal activities stood at 84.42 yuan, a decrease of 0.37 yuan year-on-year; the expenses for per-hundred-yuan turnover of principal activities stood at 8.15 yuan, a decrease of 0.03 yuan; the revenue from principal activities brought by per hundred yuan assets was 96.8 yuan, an increase of 2.2 yuan; the revenue from principal activities per capita was 1280 thousand yuan, an increase of 142.0 thousand yuan; the turnover days of finished goods were 16.4 days, a decrease of 0.1 day; the days sales outstanding hit an average of 45.5 days, an increase of 0.4 days.

In June, the profits made by industrial enterprises above the designated size achieved 658.29 billion yuan, a year-on-year increase of 20.0 percent, and the growth rate decreased by 1.1 percentage points from May.  

Annotations:

I.  Explanatory Notes:

1.Total Profits: refer to the surplus of various revenue deducting various costs in the production process of  enterprises, reflecting the total profit and  loss in the report period.

2.  Operating income: refers to the total amount of revenue of enterprises  recognized by the principal business and other business  operations.

3. Revenue from Principal Activities: refers to the total amount of revenue of enterprises gained from the principal business operation.

4. Operating costs: refers to the total costs of enterprises incurred by the  principal business and other business operations.

5. Costs of Principal Activities: refers to the total costs of enterprises incurred by the principal business operation.

6.Total Assets: refers to the resources which are gotten from past transactions or events, owned or controlled by enterprises, and expected to bring economic benefits to the enterprises.

7.Total Liabilities: refers to the current obligation generated from past transactions or events, and expected an outflow of economic benefits from the enterprises.  

8. Total Owners' Equity: refers to the residual interests after deducting liabilities, which belongs to the enterprises owners.

9. Accounts Receivable: refers to the creditor's rights due to the sale of goods, services, and other business activities, including the payment for goods, value-added tax, prepay freight and miscellaneous charges, to be collected from the customers.

10. Finished Goods: refers to manufactured products which are ready for sale by the end of report period.

11. Profit Rate of Revenue from Principal Activities = total profits / revenue from principal activities × 100%, unit: %.

12. Costs for per-hundred-yuan Turnover of Principal Activities = the costs of revenue from principal activities/the revenue from principal activities ×100, unit:  yuan.

13.  Expenses for per-hundred-yuan Turnover of Principal Activities = (selling  expenses + administrative expenses + financial expenses)/the revenue from  principal activities ×100, unit: yuan.

14.  Revenue from Principal Activities Brought by per Hundred yuan  Assets = the revenue from principal activities/average assets/the cumulative number of months×12×100, unit: yuan.

15. Revenue from Principal Activities per Capita = revenue from principal activities/average number of employment/the cumulative number of months×12, unit: 10 thousand yuan/person.

16. Asset-Liability Ratio = total liabilities/total assets×100%, unit: %.  

17. Turnover Days of Finished Goods = 360×average finished goods/costs of  principal activities×the cumulative number of months/12, unit: days.  

18. Days  Sales Outstanding (the number of days on average a company takes to collect its accounts receivable) = 360×average accounts receivable/revenue from principal activities ×the cumulative number of months/12, unit:days.

19. In the columns of increase rate year-on-year of the three tables above, the "note" refers to negative total profits in the same period last year, which means loss; the positive value refers to a year-on-year increase of profits; the negative  value which is greater than or equal to -100% refers to a year-on-year decrease  of profits; the value less than -100% indicates turning gain in the same period  last year into loss in current period; and the value of 0 indicates that the  profits remain at the same level year-on-year.

II. The  growth rates of the total profits and revenue from principal activities of industrial enterprises above designated size are calculated on a comparable basis. There are incomparable factors between the data in the reporting period and the same indicator data published in the previous year, which cannot be directly compared to calculate the growth rate. The main reasons are: (1) According to the statistical system, the survay coverage of industrial enterprises above designated size is adjusted regularly every year. Each year, some companies will be included in the survey after having reached designated  size, and some will exit the survey due to their smaller size, and there are  also influence of new built and starting enterprises, bankruptcies, and companies that have been suspended or sold. (2) By strengthening the statistical law enforcement, the enterprises found in the statistical law enforcement inspection that do not meet the industrial statistics requirements above designated size have been cleared, and relevant bases have been revised in accordance with regulations. (3) Strengthen data quality management and  eliminate the cross-regional and cross-industry repeated calculation. According  to the latest investigation of the organizational structure carried out by the  National Bureau of Statistics, since the fourth quarter of last year, the  cross-regional and cross-industry repeated calculation of enterprise groups (companies) has been eliminated. (4) After the implementation of the "reform of  replacing business tax with value-added tax" policy, the service industry enterprises turned to pay value-added tax of which the tax rate was lower. The industrial enterprises have gradually divested their internal non-industrial production and operation activities, and turned to the service industry, which  had diminished the financial data of industrial enterprises.

III. Statistical Coverage

Industrial enterprises above the designated size, which refer to industrial enterprises with revenue from principal activities over 20 million  yuan.

IV.Data  Collection

The Financial Report of Enterprises Above the Designated Size conducts complete survey by month (the data on January are not required to report).

V. Industrial Classification Standard

The Industrial Classification for National Economic Activities (GB/T4754-2017) was implemented, please refer to https://www.stats.gov.cn/tjsj/tjbz/hyflbz.