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

Source: China National Light Industry Council

The sales cost of bicycle manufacturing industry increased from 38.2 billion yuan in 2004 to 53.8 billion yuan in the first 11 months of 2008. Among that, the sales cost was 46.4 billion yuan in 2006 and 53.2 billion yuan in 2007, up by 14.7% on a year-on-year basis. The sales cost increased by 16.2% on a year-on-year basis in the first 11 months of 2008. The management expense was 1.74 billion yuan in 2004, up by 36.5% on a year-on-year basis, and 2.14 billion yuan in 2008, up by 11.7% on a year-on-year basis. The management expense peaked at 2.22 billion yuan in 2007, up by 19.1% on a year-on-year basis at the fastest speed in recent 3 years. The management expense dropped by 7.2% in 2005 on a year-on-year basis. The financial expense was 250 million yuan in 2004, up by 26.7% on a year-on-year basis, 230 million yuan in 2005, up by 4.7% on a year-on-year basis, 350 million yuan in 2006, up by 50.7%on a year-on-year basis and 480 million yuan in 2007, up by 36.6% on a year-on-year basis. The financial expense stood at 480 million yuan in the first 11 months of 2008, up by 32.7% on a year-on-year basis.

Figure 5-54 Costs and expenses of bicycle manufacturing industry 2004-2008

Item	Jan.-Nov. 2008	2007	2006	2005	2004
Sales costs (100million RMB)	538	532	464	408	382
Year-on-year growth (%)	16.2	14.7	13.7	6.8	43.6
Management expenses (100million RMB)	21.4	22.2	18.7	16.1	17.4
Year-on-year growth (%)	11.7	19.1	15.7	-7.2	36.5
Financial expenses (100million RMB)	4.8	4.8	3.5	2.3	2.5
Year-on-year growth (%)	32.7	36.6	50.7	-4.7	26.7

Source: China National Light Industry Council

The asset growth rate of bicycle manufacturing industry reached as high as 33.2% in 2004 but dropped to 1.8% in 2005. It stood at 7.8% in 2007 and 8.0% in the first 11 months of 2008. The asset-liability rate encountered an obvious change, which reached 73.8% in 2004, 65.4% in 2005 and 66% in the first 11 months of 2008. The profit growth kept going up steadily from 2005 to 2007 but saw a drop in 2008. The profit growth rate was 46.1% in 2004, 6.0% in 2005, 5.6% in 2006 and 7.5% in 2007. It became 1.5% in the first 11 months of 2008. The industry saw a remarkable decrease in profit growth. The total industrial output value growth of this industry stood at 39.8% in 2004, 13.4% in 2006 and 13.9% in the first 11 months of 2008. The annual employee growth rate reached 37.6% in 2004 at the highest speed in recent 5 years. It decreased by 5.8% in 2005. It stood at 3.7% in the first 11 months of 2008.

Figure5-55 Profit growth of bicycle manufacturing industry 2004-2008 Unit: (%)

Item	Jan.- Nov. 2008	2007	2006	2005	2004
Asset growth rate	8.0	7.8	19.3	1.8	33.2
Asset-liability	66.1	66.8	59.2	65.4	73.8
Profit growth rate	1.5	7.5	5.6	6.0	46.1
Growth rate of total industrial output value	13.9	15.1	13.4	7.1	39.8
Annual employee growth rate	3.7	2.9	6.5	-5.8	37.6

Source: China National Light Industry Council

The two-wheeled bicycles output was 63.749 million in 2004, up by 8.0% on a year-on-year basis and 56.310 million in 2005, up by 12.3% on a year-on-year basis. It speeded up in 2006 to be 19.6% on a year-on-year basis. The years of 2007 and 2008 saw a constant drop, which is 65.498 million in 2007, down by 2.7% on a year-on-year basis and 63.749 million in 2008, down by 2.7% on a year-on-year basis.

Figure 5-56 Output of two-wheeled bicycles 2004-2008

Item	Jan.- Nov. 2008	2007	2006	2005	2004
Output (10,000)	6374.9	6549.8	6732.7	5631.0	5001.3
Growth rate (%)	-2.7	-2.7	19.6	12.6	8.0

Source: China National Light Industry Council

5.12 Ceramic products manufacturing industry

In 2008, the total industrial output value of ceramic products manufacturing industry accounted for 1.3% of light industry. It includes ceramic products manufacturing, sanitary ware manufacturing, special ceramics manufacturing, daily-used ceramic manufacturing, and ceramics for gardening, lay-out and others.

The number of ceramic products manufacturing enterprises increased from 1,499 in 2004 to 1,959 in November 2008. During the same period, the asset size increased from 57.0 billion yuan to 69.9 billion yuan. The total industrial output value and industrial sales value increased from 52.2 billion yuan and 52.6 billion yuan to 108.6 billion yuan and 101.8 billion respectively. The contribution margin increased from 2.5 billion yuan to 5.8 billion yuan. The employees increased from 53,000 persons to 54,000 persons.

Figure5-57 Scale size of ceramic products manufacturing industry 2004-2008

Item	Jan.- Nov. 2008	2007	2006	2005	2004
Number of enterprises	1959	1896	1685	1560	1499
Average annual employees (10,000 persons)	5.4	5.7	5.5	5.2	5.3
Total asset（100 million yuan）	699	653	588	536	570
Total industrial output value（100 million yuan）	1086	977	715	561	522
Industrial sales revenue（100 million yuan）	1018	949	690	546	526
Contribution margin（100 million yuan）	58	60	41	27	25

Source: China National Light Industry Council

The sales cost of ceramic products manufacturing industry increased from 41.4 billion yuan in 2004 to 84.5 billion yuan in the first 11 months of 2008. Among that, the sales cost was 55.2 billion yuan in 2006 and 75.3 billion yuan in 2007, up by 36.4% on a year-on-year basis at the highest speed in recent 5 years. The sales cost increased 25.4% on a year-on-year basis in the first 11 months of 2008. The management expense was 2.86 billion yuan in 2004, up by 13.2% on a year-on-year basis and grew to 3.99 billion yuan in 2008, up by 18.7% on a year-on-year basis. The management expense in 2007 was 4.46 billion yuan, up by 28.3% on a year-on-year basis at the highest speed in recent 5 years. The management expense in 2005 increased by 6.9% on a year-on-year basis. The financial expense was 870 million yuan in 2004, up by 11.1% on a year-on-year basis, 750 million yuan in 2005, down by 14.1% on a year-on-year basis, which was the sharpest drop in recent 5 years. The financial expense was 880 million yuan in 2006 and 1.0 billion yuan in 2007. The financial expense reached 1.05 billion yuan in the first 11 months of 2008, up by 15.2% on a year-on-year basis.

Figure5-58 Costs and expenses of ceramic products manufacturing industry 2004-2008

Item	Jan.- Nov. 2008	2007	2006	2005	2004
Sales costs (100million RMB)	845	753	552	432	414
Year-on-year growth (%)	25.4	36.4	27.8	4.3	17.6
Management expenses (100million RMB)	39.9	44.6	34.8	30.6	28.6
Year-on-year growth (%)	18.7	28.3	13.6	6.9	13.2
Financial expenses (100million RMB)	10.5	10.0	8.8	7.5	8.7
Year-on-year growth (%)	15.2	14.2	16.7	-14.1	11.1

Source: China National Light Industry Council

The asset growth rate of ceramic products manufacturing industry reached 6.5% in 2004, 6.0% in 2005 and increased to 9.6% in 2006 and 15.2% in the first 11 months in 2008. The asset growth rate of ceramic products manufacturing industry tended to go up. The asset-liability rate maintained a remarkable change, which reached 64.6% in 2004, 60.7% in 2005. It kept around 53% from 2007 to 2008. The asset-liability rate of ceramic products manufacturing was relatively low compared with other sectors in light industry. The profit growth rate maintained high from 2005 to 2007. The profit growth rate was 28.7% in 2004, 7.6% in 2005, 51.7% in 2006 and 47.7% in 2007. It kept a high growth rate of 44.1% in the first 11 months of 2008. The total industrial output value growth of this industry stood at 12.8% in 2004, 27.3% in 2006 and 24.4% in the first 11 months of 2008. The rate kept a high growth rate from 2006 to 2008. The annual employee growth rate decreased by 3.0% in 2004, 1.5% in 2005, 3.1% in the first 11 months of 2008. On the whole, the annual employee growth rate tended to drop.

Figure5-59 Profit growth of ceramic products manufacturing industry 2004-2008 Unit: %

Item	Jan.-Nov. 2008	2007	2006	2005	2004
Asset growth rate	15.2	11.1	9.6	-6.0	6.5
Asset-liability	54.3	51.1	57.0	60.7	64.6
Profit growth rate	44.1	47.7	51.7	7.6	28.7
Growth rate of total industrial output value	24.4	36.7	27.3	7.5	12.8
Annual employee growth rate	-3.1	2.9	5.5	-1.5	-3.0

Source: China National Light Industry Council

5.13 Daily chemicals manufacturing industry

In 2008, daily chemicals manufacturing industry generated a total output value of 21.3 billion yuan, accounting for 0.2% of light industry. Daily chemicals manufacturing industry is closely related to people's life in spite of its small output value proportion of light industry. It includes the following five sectors: soap and synthetic detergent manufacturing, cosmetic manufacturing, dental care products manufacturing, spice and essence manufacturing and other daily chemical manufacturing.

The number of daily chemicals manufacturing enterprises increased from 1,402 in 2004 to 1,501 in November 2008. During the same period, the asset size increased from 97.1 billion yuan to 149.9 billion yuan. The total industrial output value and industrial sales value increased from 125.0 billion yuan and 116.6 billion yuan to 193.7 billion yuan and 187.7 billion respectively. The contribution margin increased from 13.8 billion yuan to 18.6 billion yuan. The employees increased from 23,000 persons to 27,000 persons.

Figure5-60 Scale growth of daily chemicals manufacturing industry 2004-2008

Item	Jan.-Nov. 2008	2007	2006	2005	2004
Number of enterprises	1501	1438	1360	1335	1402
Average annual employees (10,000 persons)	2.7	2.6	2.4	2.4	2.3
Total asset（100 million yuan）	1499	1342	1162	1053	971
Total industrial output value（100 million yuan）	1934	1830	1512	1372	1250
Industrial sales revenue（100 million yuan）	1877	1732	1447	1341	1166
Contribution margin（100 million yuan）	186	208	158	155	138

Source: China National Light Industry Council

From 2004 to 2008, the total industrial output value of soap and synthetic detergent manufacturing increased from 63.87588 billion yuan to 92.85737 billion yuan. The total industrial output value of cosmetic manufacturing increased from 29.53 billion yuan to 53.85 billion yuan. The total industrial output value of dental care products manufacturing increased from 6.53 billion yuan to 9.09 billion yuan. The total industrial output value of spice and essence manufacturing increased from 12.59635 billion yuan to 31 billion yuan. In 2008, the total industrial output value of soap and synthetic detergent manufacturing accounted for 49.7% of daily chemicals manufacturing. The total industrial output value of cosmetic manufacturing accounted for 28.8%. The total industrial output value of dental care products manufacturing accounted for 4.9%. The total industrial output value of spice and essence manufacturing accounted for 16.6%.

Figure5-61 Total industrial output value of major sectors of daily chemicals manufacturing industry

2004-2008 Unit: RMB 10,000

Item	2008	2007	2006	2005	2004 (at constant prices in 1990)
Soap and synthetic detergent manufacturing	9285737	8106828	7094687	6481376	6387588
Cosmetic manufacturing	5385453	4741792	3854046	3464451	2953161
Dental care products manufacturing	908537	803654	705975	71443	652865
Spice and essence manufacturing	3100376	2542064	2242222	1806757	1259635

Source: China National Light Industry Council

The sales cost of daily chemicals manufacturing industry increased from 72.7 billion yuan in 2004 to 122.8 billion yuan in the first 11 months of 2008. Among that, the sales cost was 95.6 billion yuan in 2006 and 115.6 billion yuan in 2007, up by 20.9% on a year-on-year basis. The sales cost increased 19.9% on a year-on-year basis in the first 11 months of 2008. The management expense was 7.96 billion yuan in 2004, up by 22.8% on a year-on-year basis and grew to 11.09 billion yuan in 2008, up by 18.7% on a year-on-year basis. The management expense in 2007 was 11.53 billion yuan, up by 19.6% on a year-on-year basis at the highest speed in recent 3 years. The financial expense was 850 million yuan in 2004, up by 14.0% on a year-on-year basis, 580 million yuan in 2005, down by 31.8% on a year-on-year basis. The financial expense was 720 million yuan in 2006 and 770 million yuan in 2007, up by 25.6% and 6.0% on a year-on-year basis respectively. The financial expense reached 640 million yuan in the first 11 months of 2008, up by 9.5% on a year-on-year basis.