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

Source: China National Light Industry Council

4.7.4 Profits

In February 2008, the cumulative profits of plastic product industry reached 4.26 billion yuan, up by 30.93% on a year-on-year basis. The profit growth encountered a decline. In November, the cumulative profits were 34.26 billion yuan, up by 11.48% on a year-on-year basis. In February 2008, 3,370 enterprises or 22.21% of all companies suffered losses. In November, the cumulative number of enterprises in the red was 2,961 for 18.24% of all companies. Both the number of loss-suffering enterprises and scale were declining. In February, the total loss reached 1.33 billion yuan, up by 14.72% on a year-on-year basis. In November, the cumulative loss stood at 5.47 billion yuan, up by 43.07% on a year-on-year basis. The year-on-year growth of total loss was gradually speeding up.

In November 2008, plastic board, pipe and sectional material manufacturing generated a large proportion of profits of 9.003 billion yuan, up by 19.99% on a year-on-year basis. The profits of plastic film manufacturing were 4.22 billion yuan, up by 18.29% on a year-on-year basis. The profits of plastic board, pipe and sectional material manufacturing reached 4.069 billion yuan, up by 15.95% on a year-on-year basis. The profits of plastic artificial leather and synthetic leather, daily plastic leather and other plastic product manufacturing were relatively small. 567 enterprises of other plastic product manufacturing suffered loss, up by 23.69% on a year-on-year basis. 463 enterprises of plastic board, pipe and sectional material manufacturing suffered loss, up by 17.26% on a year-on-year basis. The daily plastic manufacturing, plastic part manufacturing and plastic film manufacturing had seen a large loss-suffering scale. Both plastic board, pipe and sectional material manufacturing and other plastic product manufacturing saw a loss of 889 million yuan. Plastic thread, rope and knitting manufacturing suffered a loss of 870 million yuan, a sharp increase by 310.46% on a year-on-year basis. The loss of plastic artificial leather and synthetic leather and foam plastic manufacturing was relatively small.

Figure 4-44 Profits of plastic product industry Unit: 100 million RMB, %

Time	The cumulative profits	Year-on -year increase	Number of loss-suffering enterprises	Percentage f loss-Suffering enterprises	Enterprises’ total loss	Year-on -year increase
2007-02	31.27	18.99	3067	22.76	12.11	17.15
2007-05	114.21	29.47	2581	18.73	21.34	10.61
2007-08	209.17	32.27	2436	17.40	30.46	5.01
2007-11	308.94	33.91	2326	16.01	38.45	0.36
2008-02	42.64	30.93	3370	22.21	13.27	14.72
2008-05	135.18	24.89	3081	19.76	25.50	16.29
2008-08	239.51	16.64	3006	18.91	43.27	43.1
2008-11	342.57	11.48	2961	18.24	54.67	43.07
Of which: plastic film manufacturing	42.24	18.29	311	19.36	7.18	20.6
Plastic board, pipe and sectional material manufacturing	90.03	19.99	463	17.26	8.89	20.2
Plastic thread, rope and knitting manufacturing	40.69	15.95	301	14.21	8.70	310.46
Foam plastic manufacturing	21.82	7.09	168	16.44	2.22	135.2
Plastic artificial leather and synthetic leather manufacturing	15.31	15.74	60	13.79	0.93	-1.2
Plastic packing-cases and vessels manufacturing	37.25	14.20	302	17.28	4.67	23.12
Plastic part manufacturing	34.05	-14.90	365	19.72	7.70	39.59
Daily plastic manufacturing	27.82	6.67	424	17.81	5.51	30.32
Other plastic product manufacturing	33.36	14.39	567	23.69	8.89	21.23

Source: China National Light Industry Council

4.7.5 Operation performance

In February 2008, the product sales revenue of plastic product industry grew at 23.6%, down by 0.79 percentage point on a year-on-year basis. In November, the product sales revenue grew at 19.48%, down by 7.41 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 117.42%, up by 4.48 percentage points on a year-on-year basis. In November, the ratio became 115.44%, up by 0.08 percentage point on a year-on-year basis. In February 2008, the asset-liability ratio of plastic product industry was 56.49%, down by 0.35 percentage point on a year-on-year basis. In November, the asset-liability ratio was 56.04%, down by 1.3 percentage point on a year-on-year basis. In February 2008, the net amount growth rate of accounts receivable was 15.77%, up by 0.73 percentage point on a year-on-year basis. In November, the rate was 6.7%, down by 8.63 percentage points on a year-on-year basis. The net amount growth rate of accounts receivable saw a sharp decline.

Figure 4-45 Operation performance of plastic 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	24.39	0.99	112.94	-2.30	56.84	-0.06	15.04	-5.47
2007-05	25.84	2.14	115.79	1.30	57.32	0.26	16.69	-2.2
2007-08	26.84	1.51	113.8	-2.20	57.25	0.13	15.26	-2.48
2007-11	26.89	2.11	115.36	0.09	57.34	0.25	15.33	-3.19
2008-02	23.60	-0.79	117.42	4.48	56.49	-0.35	15.77	0.73
2008-05	23.70	-2.14	115.38	-0.41	57.24	-0.08	13.05	-3.64
2008-08	22.02	-4.82	114.97	1.17	57.14	-0.11	10.59	-4.67
2008-11	19.48	-7.41	115.44	0.08	56.04	-1.3	6.7	-8.63

Source: China National Light Industry Council

4.7.6 Investment in fixed assets

The cumulative investment in fixed assets of plastic product industry in 2008 approached 109.57 billion yuan, up by 25.47% on a year-on-year basis. In February, the cumulative investment in fixed assets was 5.56 billion yuan, up by 38.65% on a year-on-year basis, the highest speed throughout the year. In February, the cumulative investment in fixed assets reached 13.96 billion yuan, up by 17.51% on a year-on-year basis. This industry in 2008 kept a stable increase on the whole.

Figure4-46 Investment in fixed assets of plastic product industry Unit: 100 million RMB, %

Time	Cumulative aggregate investment amount	Amount over the same period last year	Year-on-year increase
2008-02	55.6	40.1	38.65
2008-03	139.6	118.8	17.51
2008-04	217.9	183.9	18.49
2008-05	309.7	261.8	18.30
2008-06	458.4	383.5	19.53
2008-07	553.9	466.9	18.63
2008-08	658.8	549.8	19.83
2008-09	772.8	643.7	20.06
2008-10	876.0	727.0	20.50
2008-11	988.3	816.6	21.03
2008-12	1095.7	909.5	20.47

Source of the data: China's National Bureau of Statistics

4.7.7 Production and sales by region

In 2008, Guangdong boasted 214.47 billion yuan output value of plastic product industry, accounting for 24.53% of the industry's total output, the highest in the country, up by 20.17% on a year-on-year basis. The total output value of Zhejiang was 134.11 billion yuan, accounting for 15.34%, up by 12.49% on a year-on-year basis. The total output value of this industry was relatively large in Jiangsu, Shandong, and Shanghai. In this year, Ningxia ranked the first in China in sales-output ratio of 116.59%, followed by Hainan and Beijing. The ratio of Xinjiang was 75.06% as the lowest in China. Gansu, Guangxi and Guizhou had a relatively low sales-output ratio.

Figure 4-47 Sales-output distribution of plastic 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	8742.01	21.67	100	8306.74	19.48	100	95.02
Beijing	61.17	9.01	0.70	66.01	9.74	0.79	107.90
Tianjin	168.26	13.00	1.92	165.38	11.73	1.99	98.29
Hebei	261.70	23.08	2.99	232.36	25.75	2.80	88.79
Shanxi	17.01	8.19	0.19	15.66	13.66	0.19	92.03
Inner Mongolia	43.53	263.98	0.50	42.61	264.71	0.51	97.88
Liaoning	458.63	44.11	5.25	424.17	40.66	5.11	92.49
Jilin	55.45	34.83	0.63	47.36	61.18	0.57	85.42
Heilongjiang	35.82	11.51	0.41	30.84	3.46	0.37	86.10
Shanghai	442.55	10.10	5.06	440.09	6.99	5.30	99.45
Jiangsu	1007.46	15.25	11.52	982.45	14.10	11.83	97.52
Zhejiang	1341.11	12.49	15.34	1304.68	11.89	15.71	97.28
Anhui	241.02	33.07	2.76	222.06	28.65	2.67	92.13
Fujian	474.81	21.27	5.43	448.83	16.36	5.40	94.53
Jiangxi	81.33	59.62	0.93	78.39	59.03	0.94	96.38
Shandong	897.25	24.34	10.26	880.13	26.60	10.60	98.09
Henan	296.30	39.91	3.39	274.86	37.12	3.31	92.77
Hubei	163.52	36.26	1.87	151.85	37.94	1.83	92.86
Hunan	118.65	38.23	1.36	114.38	43.66	1.38	96.40
Guangdong	2144.73	20.17	24.53	1978.59	14.48	23.82	92.25
Guangxi	41.89	18.98	0.48	33.68	20.82	0.41	80.39
Hainan	4.11	6.57	0.05	4.63	24.86	0.06	112.72
Chongqing	41.54	39.91	0.48	39.26	34.83	0.47	94.51
Sichuan	211.72	38.44	2.42	196.56	38.31	2.37	92.84
Guizhou	15.93	39.31	0.18	13.36	40.83	0.16	83.88
Yunnan	27.71	32.13	0.32	26.26	27.04	0.32	94.76
Tibet	27.24	27.70	0.31	25.69	25.48	0.31	94.29
Shaanxi	16.28	6.69	0.19	14.72	6.04	0.18	90.43
Gansu	0.54	20.23	0.01	0.47	22.30	0.01	88.31
Qinghai	6.94	20.46	0.08	7.32	53.40	0.09	105.47
Ningxia	37.81	6.23	0.43	44.09	7.46	0.53	116.59
Xinjiang	3.56	-7.56	0.04	2.67	5.11	0.03	75.06