China Business Guide 中 国 商 务 指 南 2009 （The Light Industry）

Source: China National Light Industry Council

4.6.3 Costs and expenses

The sales costs of paper making and paper product industry in February 2008 were 84.01 billion yuan, up by 26.97% on a year-on-year basis. The cumulative sales costs reached 5880.47 billion yuan in November, up by 23.41% on a year-on-year basis. The sales expense in February approached 2.69 billion yuan, up by 25.45% on a year-on-year basis. The cumulative sales expense in November was 23.87 billion yuan, up by 16.22% on a year-on-year basis. In February 2008, the management expenses and financial costs of paper making and paper product industry were 3.13 billion yuan and 1.56 billion yuan respectively, up by 19.75% and 16.3% on a year-on-year basis. The cumulative management expenses and financial costs in November were 19.59 billion yuan and 10.36 billion yuan respectively, up by 19.26% and 10.85% on a year-on-year basis.

The sales costs of paper pulp manufacturing in November 2008 reached 13.05 billion yuan, accounting for 2.25% and up by 15.81% on a year-on-year basis. The sales costs of paper making was 347.45 billion yuan, accounting for 59.86% and up by 21.46%. The sales costs of paper product manufacturing was 219.96 billion yuan, accounting for 37.89% and up by 26.95% on a year-on-year basis. The sales expense of paper pulp manufacturing was 510 million yuan, accounting for 2.14% and up by 20.94%. The sales expense of paper making was 15.05 billion yuan, accounting for 63.05% and up by 12.31%. The sales expense of paper product manufacturing was 8.311 billion yuan, accounting for 34.81% and up by 23.72%. In November, the management expenses and financial costs of paper making were 10.32 billion yuan and 7.07 billion yuan respectively, accounting for 52.67% and 68.3%. The management expenses and financial costs of paper product manufacturing were 8.52 billion yuan and 2.41 billion yuan respectively, up by 23.05% and 2% on a year-on-year basis.

Figure4-36 Costs and expenses of paper making and paper product industry Unit: 100 million RMB, %

Time	Sales costs	Year-on -year increase	Sales expense	Year-on -year increase	Management expense	Year-on -year increase	Financial costs	Year-on -year increase
2007-02	659.75	22.55	21.30	20.90	26.23	11.65	13.33	3.26
2007-05	1950.63	25.35	58.79	17.38	69.85	12.53	37.86	-0.77
2007-08	3285.59	23.28	99.86	17.55	117.73	12.62	64.49	5.47
2007-11	4720.54	24.32	144.55	18.00	165.50	13.75	93.92	13.28
2008-02	840.11	26.97	26.86	25.45	31.30	19.75	15.60	16.30
2008-05	2471.35	27.25	101.03	22.60	83.84	21.13	43.77	16.21
2008-08	4171.77	27.08	168.83	16.85	138.33	18.38	70.85	11.91
2008-11	5804.66	23.41	238.73	16.22	195.92	19.26	103.55	10.85
Of which: paper pulp manufacturing	130.51	15.81	5.10	20.94	7.49	29.60	8.75	16.32
Paper making	3474.51	21.56	150.51	12.31	103.20	15.65	70.72	4.72
Paper product manufacturing	2199.64	26.95	83.11	23.72	85.23	23.05	24.08	31.17

Source: China National Light Industry Council

4.6.4 Profits

In February 2008, the cumulative profits of paper making and paper product industry reached 4.93 billion yuan, up by 3.31% on a year-on-year basis. In November, the cumulative profits were 35.57 billion yuan, up by 12.78% on a year-on-year basis. In February 2008, 1,691 enterprises or 20.52% of all the companies suffered losses. In November, the cumulative number of enterprises in the red was 1,577 or 18.1% of all the companies. Both figures were declining. In February, the total loss reached 936 million yuan, up by 18.78% on a year-on-year basis. In November, the cumulative loss stood at 3.7 billion yuan, up by 14.56% on a year-on-year basis.

In November 2008, paper making enterprises realized the most profit of 22.82 billion yuan, accounting for 64.17% of the industry, up by 16.81% on a year-on-year basis. Paper product manufacturing realized a profit of 12.26 billion yuan, up by 18.31% on a year-on-year basis. The profits of paper pulp manufacturing were 483 million yuan, down by 70.48% on a year-on-year basis. Paper product manufacturing saw relatively more loss-suffering enterprises of 869 with a scale proportion of 55.1%, up by 17.02% on a year-on-year basis. Paper making had 680 loss-suffering enterprises with a scale proportion of 43.12%, up by 19.46% on a year-on-year basis. The numbers of loss-suffering enterprises of paper pulp manufacturing was 28. Paper making enterprises suffered a relatively large amount of loss of 2.03 billion yuan, accounting for 54.79%, down by 4.82% on a year-on-year basis. Paper making enterprises lost 1.23 million yuan, accounting for 33.2%, up by 25.49% on a year-on-year basis. The loss of paper pulp manufacturing was 443 million yuan, up by 267.96% on a year-on-year basis, which grew rapidly.

Figure4-37 Profits of paper making and paper product industry Unit: 100 million RMB, %

Time	The cumulative profits	Year-on -year increase	Number of loss-suffering enterprises	Percentage of loss-suffering enterprises	Enterprises’ total loss	Year-on -year increase
2007-02	36.49	37.69	1690	21.52	8.10	4.33
2007-05	111.56	39.01	1538	19.36	17.13	8.05
2007-08	207.54	37.77	1455	18.08	26.51	15.41
2007-11	314.34	38.62	1361	16.45	31.61	9.57
2008-02	49.29	33.13	1691	20.52	9.36	18.78
2008-05	162.19	44.09	1560	18.59	16.91	0.49
2008-08	276.71	32.56	1503	17.58	25.66	2.72
2008-11	355.65	12.78	1577	18.10	36.96	14.56
Of which: paper pulp manufacturing	4.83	-70.48	28	24.14	4.43	267.96
Paper making	228.22	16.81	680	19.46	20.25	-4.82
Paper product manufacturing	122.60	18.31	869	17.02	12.27	25.49

Source: China National Light Industry Council

4.6.5 Operation performance

In February 2008, the product sales revenue of paper making and paper product industry grew at 26.89%, up by 4.14 percentage points on a year-on-year basis. In November, the product sales revenue grew at 21.86%, down by 3.03 percentage points on a year-on-year basis. The sales revenue of this industry was dropping down. In February 2008, the value-added ratio of capital maintenance was 117.91%, up by 0.45 percentage point on a year-on-year basis. In November, the ratio became 118.26%, down by 1.78 percentage point on a year-on-year basis. In February 2008, the asset-liability ratio of paper making and paper product industry was 59.48%. In November, the asset-liability ratio was 59.28%, down by 0.15 percentage point on a year-on-year basis. In February 2008, the net amount growth rate of accounts receivable was 10.2%, down by 8.51 percentage points on a year-on-year basis. In November, the rate was 0.2%, down by 15.47 percentage points on a year-on-year basis. The net amount growth rate of accounts receivable saw a remarkable decline.

Figure4-38 Operation performance of paper making and paper product industry Unit: 100 million RMB, %

Time	Sales revenue Growth rate	Year-on -year increase or decrease	Value- added ratio of capital maintenance	Year-on -year increase or decrease	Asset- Liability ratio	Year-on -year increase or decrease	Net amount growth rate of accounts receivable	Year-on -year increase or decrease
2007-02	22.75	-4.36	117.46	-2.94	60.55	-1.3	18.71	-0.46
2007-05	24.47	-2.77	118.45	-2.83	60.42	-1.41	17.77	-5.74
2007-08	23.11	-4.33	118.82	0.40	59.92	-1.99	17.92	-2.71
2007-11	24.89	0.88	120.04	3.38	59.43	-1.68	15.67	-1.05
2008-02	26.89	4.14	117.91	0.45	59.48	-1.07	10.20	-8.51
2008-05	28.40	3.93	118.29	-0.16	59.76	-0.66	8.95	-8.82
2008-08	26.31	3.20	120.12	1.30	59.53	-0.39	2.79	-15.13
2008-11	21.86	-3.03	118.26	-1.78	59.28	-0.15	0.20	-15.47

Source: China National Light Industry Council

4.6.6 Investment in fixed assets

The cumulative investment in fixed assets of paper making and paper product industry in 2008 approached 102.41 billion yuan, up by 25.04% on a year-on-year basis. In February, the cumulative investment in fixed assets was 6.03 billion yuan, up by 19.41% on a year-on-year basis. In May, the cumulative investment in fixed assets reached 31.01 billion yuan, up by 32.63% on a year-on-year basis. The investment in fixed assets paper making and paper product manufacturing industry in 2008 kept a rapid growth on the whole, with a monthly average rate over 25%.

Figure 4-39 Investment in fixed assets paper making and paper product manufacturing industry

Unit: 100 million RMB, %

Time	Cumulative aggregate investment amount	Amount over the same period last year	Year-on-year increase
2008-02	60.3	50.5	19.41
2008-03	144.3	116.4	23.97
2008-04	223.2	169.6	31.60
2008-05	310.1	233.8	32.63
2008-06	451.9	350.6	28.89
2008-07	542.9	430.2	26.20
2008-08	606.1	489.5	23.82
2008-09	727.4	557.4	30.50
2008-10	800.8	638.5	25.42
2008-11	907.1	716.7	26.57
2008-12	1024.1	819.0	25.04

Source: China's National Bureau of Statistics

4.6.7 Production and sales by region

In 2008, Shandong boasted 147.84 billion yuan output value of paper making and paper product manufacturing, accounting for 21.1% of the industry's total output, the highest in the country, up by 21.97% on a year-on-year basis. The total output value of Guangdong was 110.48 billion yuan, accounting for 15.77%, up by 23.94% on a year-on-year basis. The total output value of this industry was relatively large in Jiangsu, Henan and Zhejiang. The total output value and sales value were small in Gansu, Xinjiang and Guizhou. In this year, Ningxia ranked the first in China in sales-output ratio of 108.99%, followed by Beijing and Hunan. The ratio of Gansu was 55.05% as the lowest in China. Tibet, Xinjiang, Yunnan and Shanghai had a relatively low sales-output ratio.

Figure4-40 Sales-output distribution of paper making and paper product industry Unit: 100 million RMB, %

Region	Total industrial output value			Industrial sales value			Sales-output ratio
	Actual value	Year-on-year increase	Proportion	Actual value	Year-on-year increase	Proportion	%
China	7005.71	24.64	100	6647.44	21.86	100	94.89
Beijing	61.08	4.72	0.87	66.10	5.83	0.99	108.21
Tianjin	53.11	17.91	0.76	52.64	18.23	0.79	99.11
Hebei	237.95	21.37	3.40	217.76	18.08	3.28	91.51
Shanxi	10.28	8.72	0.15	9.90	13.22	0.15	96.33
Inner Mongolia	36.37	36.33	0.52	34.34	40.88	0.52	94.41
Liaoning	131.84	24.61	1.88	128.96	24.47	1.94	97.81
Jilin	59.06	55.41	0.84	54.59	60.43	0.82	92.44
Heilongjiang	41.62	16.78	0.59	38.66	10.19	0.58	92.89
Shanghai	185.06	9.54	2.64	184.93	10.64	2.78	99.93
Jiangsu	823.47	18.00	11.75	741.00	16.09	11.15	89.99
Zhejiang	773.13	21.87	11.04	732.83	18.02	11.02	94.79
Anhui	104.93	57.30	1.50	101.92	57.79	1.53	97.13
Fujian	330.67	26.04	4.72	319.98	27.70	4.81	96.77
Jiangxi	88.41	22.41	1.26	87.26	22.00	1.31	98.69
Shandong	1478.39	21.97	21.10	1475.93	18.00	22.20	99.83
Henan	622.23	38.23	8.88	565.83	33.48	8.51	90.94
Hubei	132.12	29.92	1.89	117.08	34.32	1.76	88.62
Hunan	205.61	31.73	2.93	216.19	29.85	3.25	105.15
Guangdong	1104.80	23.94	15.77	1029.69	21.00	15.49	93.20
Guangxi	96.51	29.12	1.38	86.52	26.64	1.30	89.65
Hainan	61.03	18.80	0.87	53.79	-0.05	0.81	88.14
Chongqing	47.87	69.02	0.68	43.78	57.70	0.66	91.46
Sichuan	175.57	39.57	2.51	163.15	41.09	2.45	92.93
Guizhou	9.33	76.31	0.13	7.30	74.67	0.11	78.23
Yunnan	36.89	14.49	0.53	34.24	13.83	0.52	92.82
Tibet	42.28	34.25	0.60	35.29	28.49	0.53	83.47
Shaanxi	9.02	22.65	0.13	6.97	18.56	0.10	77.22
Gansu	0.10	54.12	0.00	0.06	9.75	0.00	55.05
Qinghai	34.30	65.52	0.49	26.94	38.16	0.41	78.56
Ningxia	12.70	-11.38	0.18	13.85	8.22	0.21	108.99
Xinjiang	3.56	-7.56	0.05	2.67	5.11	0.04	75.06