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

Figure 4-68 Scale of arts and crafts industry Unit: 10,000 persons, 100 million yuan, %

Time	Number of enterprises	Employed persons	Year-on-year increase	Total assets value	Year-on-year increase	Debt	Year-on-year increase
2007-02	4070	8.82	2.46	940	17.97	495	16.53
2007-05	4167	9.31	2.17	1014	18.35	538	16.66
2007-08	4227	9.53	2.05	1091	19.59	585	18.87
2007-11	4407	9.63	0.96	1157	19.58	616	18.55
2008-02	4496	8.77	1.00	1170	24.16	639	30.08
2008-05	4593	9.10	-0.52	1240	18.31	672	18.1
2008-08	4649	9.31	-1.94	1300	15.66	705	13.95
2008-11	4754	9.13	-4.29	1353	14.24	717	11.27

Source: China National Light Industry Council

4.11.2 Production and sales

In February 2008, the total output value of arts and crafts industry reached 35.62 billion yuan, up by 32.43% on a year-on-year basis. In November, the cumulative output value was 230.30 billion yuan, up by 24.57% on a year-on-year basis. In February, the sales value of arts and crafts industry stood at 35.872 billion yuan, up by 33.71% on a year-on-year basis. In November, the cumulative sales value was 254.3 billion yuan, up by 23.50% on a year-on-year basis. In February, the sales-output ratio in arts and crafts industry was 100.70% and dropped slightly to 97.69% in November. The industry made 12.04 billion yuan of manufactured products in February, up by 29.17% on a year-on-year basis, and 17.51 billion yuan, up by 27.48% on a year-on-year basis.

Figure 4-69 Production and sales of arts and crafts industry Unit: 100 million RMB, %

Time	The cumulative output	Year-on-year increase	The cumulative sales value	Year-on-year increase	Sales -output ratio	Manufactured goods	Year-on -year increase
2007-02	264.93	25.76	260.27	25.75	98.24	100.03	19.65
2007-05	798.89	28.28	777.20	27.32	97.29	115.54	20.39
2007-08	1398.31	28.11	1364.39	28.53	97.57	119.88	17.14
2007-11	2044.36	30.27	1989.16	30.14	97.30	138.76	25.13
2008-02	356.24	32.43	358.72	33.71	100.70	120.36	29.17
2008-05	1084.65	33.28	1058.42	31.00	97.58	157.27	38.60
2008-08	1817.13	26.53	1808.39	27.09	99.52	165.45	38.84
2008-11	2603.05	24.57	2542.98	23.50	97.69	175.05	27.48

Source: China National Light Industry Council

4.11.3 Costs and expenses

The sales costs of arts and crafts industry in February 2008 reached 30.96 billion yuan, up by 31.99% on a year-on-year basis. The cumulative sales costs in November reached 222.35 billion yuan, up by 23.37% on a year-on-year basis. In February, the sales expense approached 902 million yuan, up by 36.56% on a year-on-year basis. In November, the cumulative sales expense was 7.98 billion yuan, up by 16.32% on a year-on-year basis. In February 2008, the management expenses and financial costs of arts and crafts industry were 1.279 billion yuan and 371 million yuan respectively, up by 16.78% and 16.62% on a year-on-year basis. In November, the cumulative management expense and financial costs were 8.212 billion yuan and 2.185 billion yuan respectively, up by 11.84% and 24.08 % on a year-on-year basis.

Figure4-70 Costs and expenses of arts and crafts 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	229.39	24.68	6.39	12.33	10.69	24.38	3.12	69.68
2007-05	681.17	27.09	18.02	9.58	28.91	23.06	6.20	22.96
2007-08	1195.11	28.45	32.50	11.31	49.49	21.52	11.36	28.68
2007-11	1745.41	30.57	49.69	17.42	72.57	23.71	17.06	36.06
2008-02	309.56	31.99	9.02	36.56	12.79	16.78	3.71	16.62
2008-05	922.64	30.33	32.44	28.21	33.30	12.62	9.49	50.23
2008-08	1569.64	26.19	58.44	32.31	57.99	14.80	15.92	36.9
2008-11	2223.50	23.37	79.78	16.32	82.12	11.84	21.85	24.08

Source: China National Light Industry Council

4.11.4 Profits

In February 2008, the cumulative profits of arts and crafts industry reached 1.658 billion yuan, up by 48.36% on a year-on-year basis. In November, the cumulative profits were 11.25 billion yuan, up by 21.17% on a year-on-year basis. In February, 985 enterprises or 21.92% of all the companies suffered losses. In November, the cumulative number of enterprises in the red was 937 or 19.71% of all the companies. The loss-suffering scale was declining. In February, the total loss reached 223 million yuan, up by 24.65% on a year-on-year basis. In November, the cumulative loss stood at 957 million yuan, up by 78.86% on a year-on-year basis. The year-on-year growth of loss saw a steady increase.

Figure 4-71 Profits of arts and crafts 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	9.98	24.56	849	20.86	1.76	0.91
2007-05	32.41	28.46	833	19.99	3.89	22.78
2007-08	57.81	30.93	725	17.15	5.07	33.29
2007-11	86.96	39.60	695	15.77	5.96	40.09
2008-02	16.58	48.36	985	21.91	2.23	24.65
2008-05	49.39	40.99	1001	21.79	5.37	35.27
2008-08	80.63	29.62	960	20.65	7.82	58.68
2008-11	112.52	21.17	937	19.71	9.57	78.86

Source: China National Light Industry Council

4.11.5 Operation performance

In February 2008, the product sales revenue of arts and crafts industry grew at 33.71%, up by 7.96 percentage points on a year-on-year basis. In November, it grew at 23.50%, down by 6.64 percentage points on a year-on-year basis. In February, the value-added ratio of capital maintenance was 117.73%, up by 1.87 percentage points on a year-on-year basis. In November, the ratio became 117.79%, down by 2.99 percentage points on a year-on-year basis. The asset-liability ratio of arts and crafts industry was 54.57% in February, up by 1.87 percentage points, and 52.98%, down by 0.28 percentage point. The net amount growth rate of accounts receivable was 8.5% in February, down by 12.88 percentage points and 14.51%, up by 7.82% on a year-on-year basis.

Figure 4-72 Operation performance of arts and crafts 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	25.75	-1.95	119.62	1.18	52.70	-0.93	21.38	5.85
2007-05	27.32	-1.82	120.32	1.89	53.04	-0.74	15.3	-0.75
2007-08	28.53	0.03	120.42	4.87	53.61	-0.33	11.78	-3.62
2007-11	30.14	4.67	120.78	4.05	53.26	-0.5	6.69	-10.47
2008-02	33.71	7.96	117.73	-1.89	54.57	1.87	8.5	-12.88
2008-05	31.00	3.68	118.55	-1.77	54.24	1.2	11.41	-3.89
2008-08	27.09	-1.44	117.76	-2.66	54.22	0.61	11.48	-0.3
2008-11	23.50	-6.64	117.79	-2.99	52.98	-0.28	14.51	7.82

Source: China National Light Industry Council

4.11.6 Production and sales by region

In 2008, Guangdong boasted 81.16 billion yuan output value of arts and crafts industry, accounting for 31.18% of the industry’s total output, the highest in the country, up by 31.67% on a year-on-year basis. The total output value of Shandong was 54.936 billion yuan, accounting for 21.10% and up by 15.49% on a year-on-year basis. The total output value of Zhejiang, Fujian and Jiangsu was relatively large. The total output value and sales value of Ningxia, Guizhou, Yunnan, Shaanxi and Qinghai were relatively small. In this year, Yunnan ranked the first in China in sales-output ratio of 150.66%, followed by Shanghai, Shaanxi and Tianjin. Ningxia ranked the last in sales-output ratio of 59.03%. Hubei, Chongqing and Heilongjiang also saw a relatively low sales-output ratio.

Figure4-73 Sales-output distribution of arts and crafts 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	2603.05	24.57	100	2542.98	23.50	100	97.69
Beijing	45.29	134.40	1.74	36.14	95.24	1.42	79.80
Tianjin	20.37	12.71	0.78	20.62	13.45	0.81	101.22
Hebei	19.04	23.62	0.73	17.39	21.54	0.68	91.32
Shanxi	0.78	27.59	0.03	0.50	-8.23	0.02	64.30
Inner Mongolia	4.93	132.98	0.19	4.88	140.56	0.19	98.95
Liaoning	47.97	90.71	1.84	44.81	76.35	1.76	93.41
Jilin	5.27	51.77	0.20	5.13	45.58	0.20	97.38
Heilongjiang	2.78	20.96	0.11	2.05	25.40	0.08	73.97
Shanghai	88.95	29.30	3.42	129.98	30.51	5.11	146.13
Jiangsu	106.77	8.92	4.10	106.74	10.85	4.20	99.97
Zhejiang	317.82	10.23	12.21	303.58	9.04	11.94	95.52
Anhui	26.02	45.14	1.00	24.50	38.00	0.96	94.15
Fujian	224.47	18.17	8.62	217.38	22.65	8.55	96.84
Jiangxi	40.82	34.45	1.57	41.16	41.76	1.62	100.85
Shandong	549.36	15.49	21.10	539.04	19.06	21.20	98.12
Henan	206.89	37.07	7.95	191.26	39.87	7.52	92.44
Hubei	27.32	32.61	1.05	18.76	53.59	0.74	68.64
Hunan	21.37	26.51	0.82	20.92	26.06	0.82	97.91
Guangdong	811.56	31.67	31.18	784.64	24.39	30.86	96.68
Guangxi	9.89	-8.12	0.38	7.92	-6.71	0.31	80.03
Hainan	1.82	-11.06	0.07	1.83	-6.65	0.07	100.54
Chongqing	3.47	15.53	0.13	2.95	16.53	0.12	84.94
Sichuan	13.96	61.97	0.54	13.89	58.86	0.55	99.51
Guizhou	0.21	9.64	0.01	0.17	-5.00	0.01	79.10
Yunnan	0.33	8.65	0.01	0.50	-2.64	0.02	150.66
Tibet	0.18	20.20	0.01	0.11	20.97	0.00	60.00
Shaanxi	2.50	51.76	0.10	3.41	39.43	0.13	136.60
Gansu	0.51	0.98	0.02	0.53	-0.13	0.02	102.09
Qinghai	1.85	16.16	0.07	1.74	8.16	0.07	93.86
Ningxia	0.02	-75.07	0.00	0.01	-80.63	0.00	59.03
Xinjiang	0.50	21.21	0.02	0.44	4.28	0.02	87.77