Source: State Tax Administration
5.6 Furniture Manufacturing Industry
As an important part of light industry, furniture manufacturing industry generated a proportion of 3.12% of light industry output in 2008. It includes wood furniture manufacturing, bamboo and cane furniture manufacturing, metal furniture manufacturing, plastic furniture manufacturing and other furniture manufacturing.
During the 30 years since reform and open-up, China's furniture industry has rapidly transferred its mode of production from handicraft to mechanization, automation and industrialization and moved towards mature industrialization and new industrialization to become a modern industry.
In recent years, the total output value of China's furniture industry grew very rapidly, but the improvement is mainly reflected in output, not the overall technological level nor the quality of the entire industry output growth. With the largest total export volume all over the world, China has become a major furniture producer and exporter.China's furniture industry has much room for development along with the industry center moving from developed countries to developing countries and the increasing international market demand.
The number of furniture manufacturing enterprises increased from 3,025 in 2004 to 4,432 in the first 11 months of 2008. During the same period, the asset size increased from 90.1 billion yuan to 173 billion yuan. The industrial total output value increased from 115.5 billion yuan to 262.8 billion yuan. The industrial sales value increased from 113.1 billion yuan to 253.5 billion yuan. The contribution margin increased from 4.9 billion yuan to 9.2 billion yuan. The employees in this industry increased from 65,000 to 92,000. China's furniture manufacturing industry has seen a great leap in scale and technology level during the five years.
Figure 5-31 Scale growth of furniture manufacturing industry 2004-2008
Item
|
Jan.-Nov. 2008
|
2007
|
2006
|
2005
|
2004
|
Number of enterprises
|
4432
|
4110
|
3603
|
3074
|
3025
|
Average annual employees
|
9.2
|
9.1
|
8.4
|
7.1
|
6.5
|
Total asset (100 million)
|
1730
|
1656
|
1321
|
1033
|
901
|
Total industrial output value (100 million yuan)
|
2628
|
2425
|
1883
|
1427
|
1155
|
Industrial sales revenue (100 million yuan)
|
2535
|
2370
|
1834
|
1398
|
1131
|
Contribution margin (100 million yuan)
|
92
|
109
|
86
|
62
|
49
|
Source: China National Light Industry Council
During 2004 to 2008, the total industrial output value of wood furniture manufacturing increased from 60.7 billion yuan to 160.6 billion yuan. The total industrial output value of bamboo and cane furniture manufacturing increased from 1.1 billion yuan to 3.0 billion yuan. The total industrial output value of medal furniture manufacturing increased from 36.0 billion yuan to 76.0 billion yuan. The total industrial output value of plastic furniture manufacturing increased from 1.7 billion yuan to 3.5 billion yuan. The total industrial output value of other furniture manufacturing increased from 16.1 billion yuan to 49.0 billion yuan. In 2008, wood furniture manufacturing took 55%, the largest proportion of furniture industry.
Furniture 5-32 Total industrial output value of major sectors of furniture manufacturing 2004-2008
Unit: 100 million RMB
Item
|
2008
|
2007
|
2006
|
2005
|
2004
|
Wood furniture manufacturing
|
1606
|
1278
|
1014
|
782
|
607
|
Bamboo and cane furniture manufacturing
|
30
|
20
|
15
|
14
|
11
|
Medal furniture manufacturing
|
761
|
652
|
547
|
408
|
360
|
Plastic furniture manufacturing
|
35
|
27
|
21
|
17
|
17
|
Other furniture manufacturing
|
490
|
393
|
285
|
207
|
161
|
Source: China National Light Industry Council
The sales cost of furniture manufacturing industry increased from 96.0 billion yuan in 2004 to 217.5 billion yuan in the first 11 months of 2008, up by 21.5% on a year-on-year basis. Among that, the sales cost in 2007 was 197.8 billion yuan, up by 28.1% on a year-on-year basis. The sales cost in 2006 was 154.4 billion yuan. The management expense of this industry was 5.2 billion yuan in 2007, up by 66.5% on a year-on-year basis. The management expense was 10.6 billion yuan in the first 11 months of 2008, up by 17.2% on a year-on-year basis and 10.5 billion yuan in 2007, up by 30.8% on a year-on-year basis, at the highest speed in recent 3 years. The financial expense was 900 million yuan in 2004, up by 29.5% on a year-on-year basis, and 1.3 billion yuan in 2005, up by 39.1% on a year-on-year basis, at the highest speed in recent 5 years. The financial expense was 2.2 billion yuan in the first 11 months of 2008, a sharp drop on a year-on-year basis.
Figure 5-33 Costs and expenses of furniture manufacturing industry 2004-2008
Item
|
Jan.-Nov. 2008
|
2007
|
2006
|
2005
|
2004
|
Sales costs (100million RMB)
|
2175
|
1978
|
1544
|
1182
|
960
|
Year-on-year growth (%)
|
21.5
|
28.1
|
30.6
|
23.1
|
63.0
|
Management expenses (100million RMB)
|
106
|
105
|
81
|
62
|
52
|
Year-on-year growth (%)
|
17.2
|
30.8
|
29.3
|
19.0
|
66.5
|
Financial expenses (100million RMB)
|
22
|
24
|
16
|
13
|
9
|
Year-on-year growth (%)
|
11.8
|
45.4
|
25.4
|
39.1
|
29.5
|
Source: China National Light Industry Council
The asset growth ratio of furniture manufacturing encountered a decline in 2004 to 2008. The ratio peaked at 46.3% in 2004 and dropped to 14.6% in 2005. It grew stably in 2006 and 2007 and stood at 16.8% in the first 11 months of 2008. The asset-liability ratio maintained a steady change, which reached as high as 58.5% in 2004, 57.4% in 2005, and 57.7% in the first eleven months in 2008. The profit value saw an obvious upheaval during the five years. The profit growth ratio stood as high as 69.3% in 2004 and dropped to 39.0% in 2006. In the first 11 months of 2008, the profit kept a high growth ratio of 19.4%. The total industrial output value of this industry was 60.4% in 2004, 31.9% in 2006 and 22.4% in the first 11 months of 2008. The annual employee grew at the lowest speed of 0.6% in the first 11 months of 2008. The ratio reached as high as 49.6% in 2004 and 17.6% in 2006.
Figure5-34 Profit growth of furniture manufacturing 2004-2008 Unit: %
Item
|
Jan.- Nov. 2008
|
2007
|
2006
|
2005
|
2004
|
Asset growth ratio
|
16.8
|
25.4
|
27.9
|
14.6
|
46.3
|
Asset-liability
|
57.7
|
55.8
|
56.0
|
57.4
|
58.5
|
Profit growth ratio
|
19.4
|
26.6
|
39.0
|
26.5
|
69.3
|
Growth ratio of total industrial output value
|
22.4
|
28.8
|
31.9
|
23.6
|
60.4
|
Annual employee growth ratio
|
0.6
|
9.0
|
17.6
|
9.7
|
49.6
|
Source: China National Light Industry Council
The total furniture output was 25.165 million pieces in 2004, up by 15.6% on a year-on-year basis, and 518.672 million pieces in 2008, up by 1.9% on a year-on-year basis. The wood furniture output was 18.974 million pieces in 2008, up by 2.5% on a year-on-year basis, 8.351 million pieces in 2004, up by 19.7% on a year-on-year basis. The medal furniture output was 15.249 million pieces in 2004, up by 9.5% on a year-on-year basis, and 26.444 million pieces in 2008, down by 4.3% on a year-on-year basis. The upholstered furniture output was 919,000 pieces in 2004, up by 28.4% on a year-on-year basis, and 3.253 million pieces in 2008, down by 3.2% on a year-on-year basis. The output of all sectors of furniture manufacturing industry tended to decline in 2008, among which, medal furniture manufacturing saw the sharpest drop. The wood furniture manufacturing saw a much lower growth ratio on a year-on-year basis.
Figure 5-35 Major products output of furniture manufacturing industry 2004-2008
Item
|
Furniture output
|
Year-on-year increase or decrease
|
Wood furniture
|
Year-on-year increase or decrease
|
Medal furniture
|
Year-on-year increase or decrease
|
Upholstered furniture
|
Year-on-year increase or decrease
|
(10,000 pieces)
|
(%)
|
(10,000 pieces)
|
(%)
|
(10,000 pieces)
|
(%)
|
(10,000 pieces)
|
(%)
|
2008
|
51867.2
|
-1.9
|
1894.7
|
2.5
|
2644.4
|
-4.3
|
325.3
|
-3.2
|
2007
|
48480.6
|
6.9
|
1746.7
|
9.4
|
2566.9
|
2.7
|
266.3
|
23.6
|
2006
|
41628.6
|
22.7
|
1506.5
|
22.7
|
2297.7
|
22.1
|
192.5
|
32.3
|
2005
|
33990.1
|
11.4
|
1132.8
|
17.8
|
1724.8
|
7.8
|
144.4
|
20.4
|
2004
|
25816.5
|
15.6
|
835.1
|
19.7
|
1524.9
|
9.5
|
91.9
|
28.4
|
Source: China National Light Industry Council
5.7 Leather, Fur, Feather/Down, and Their Product Industry
As an important part of light industry, leather, fur, feather/down, and their product industry generated 6.37% of the total industrial output value of light industry. It includes leather tanning processing, leather product manufacturing, fur tanning and product manufacturing and feather/down processing and product manufacturing.
The number enterprises of leather, fur, feather/down, and their product industry increased from 6,393 in 2004 to 7,631 in the first 11 months of 2008. The asset size increased from 166.3 billion yuan to 280.8 billion yuan. The total industrial output value increased from 276.6 billion yuan to 545.3 billion yuan. The total sales output value increased from 269.3 billion yuan to 516.0 billion yuan. The contribution margin increased from 10.0 billion yuan to 24.1 billion yuan. The number of employees increased from 211,000 to 255,000. This industry has made a far leap in the five years.
Figure 5-36 Scale growth of leather, fur, feather/down, and their product industry 2004-2008
Item
|
Jan.-Nov. 2008
|
2007
|
2006
|
2005
|
2004
|
Number of enterprises
|
7631
|
7452
|
6859
|
6227
|
6393
|
Average annual employees (10,000 persons)
|
25.5
|
25.7
|
24.6
|
22.9
|
21.1
|
Total asset(100 million yuan)
|
2808
|
2649
|
2247
|
1955
|
1663
|
Total industrial output value(100 million yuan)
|
5453
|
5153
|
4150
|
3463
|
2766
|
Industrial sales revenue(100 million yuan)
|
5160
|
5037
|
4062
|
3390
|
2693
|
Contribution margin(100 million yuan)
|
247
|
256
|
179
|
139
|
100
|
Source: China National Light Industry Council
The total industrial output value of feather tanning manufacturing was 50.5 billion yuan in 2004 and increased to 99.9 billion yuan in 2008. The total industrial output value of feather product manufacturing was 193.7 billion yuan in 2004 and increased to 433.3 billion yuan in 2008. The total industrial output value of fur tanning and product manufacturing was 11.9 billion yuan in 2004 and increased to 27.9 billion yuan in 2008. The total industrial output value of f feather/down processing and product manufacturing was 20.6 billion yuan in 2004 and increased to 37.1 billion yuan in 2008. Feather tanning manufacturing generated 72% or the largest proportion of the total industrial output value of the whole industry.
Figure 5-37 Total output value of major sectors of leather, fur, feather/down, and their product industry 2004-2008
Unit: 100 million RMB
Item
|
2008
|
2007
|
2006
|
2005
|
2004
|
Grain grinding
|
999
|
909
|
763
|
640
|
505
|
Feed processing
|
4333
|
3650
|
2874
|
2412
|
1937
|
Vegetable oil processing
|
279
|
226
|
186
|
165
|
119
|
Sugar manufacturing
|
371
|
369
|
327
|
246
|
206
|
Source: China National Light Industry Council
The sales costs of leather, fur, feather/down, and their product industry increased from 235.8 billion yuan in 2004 to 448.8 billion yuan in the first 11 months of 2008. Among that, the sales cost was 351.0 billion yuan in 2006 and 430.1 billion yuan in 2007, up by 22.5% on a year-on-year basis. The sales cost increased 16.5% on a year-on-year basis in the first 11 months of 2008. The management expense was 11.1 billion yuan in 2004, up by 38.4% on a year-on-year basis, and 18.8 billion yuan in 2008, up by 23.8% on a year-on-year basis. The management expense peaked at 18.9 billion yuan in 2007, up by 27.9% on a year-on-year basis at the fastest speed in recent 3 years. The financial expense was 1.9 billion yuan in 2004, up by 14.4% on a year-on-year basis, 3.7 billion yuan in 2005, up by 23.2% on a year-on-year basis, 3.0 billion yuan in 2006, up by 29.2%on a year-on-year basis and 3.7 billion yuan in 2007, up by 23.2% on a year-on-year basis. It was 4.0 billion yuan in the first 11 months of 2008, up by 29.9% on a year-on-year basis.
Figure 5-38 Costs and expenses of leather, fur, feather/down, and their product industry 2004-2008
Item
|
Jan.-Nov. 2008
|
2007
|
2006
|
2005
|
2004
|
Sales costs (100million RMB)
|
4488
|
4301
|
3510
|
2925
|
2358
|
Year-on-year growth (%)
|
16.5
|
22.5
|
20.0
|
24.0
|
23.8
|
Management expenses (100million RMB)
|
188
|
189
|
148
|
124
|
111
|
Year-on-year growth (%)
|
23.8
|
27.9
|
19.2
|
11.8
|
38.4
|
Financial expenses (100million RMB)
|
40
|
37
|
30
|
23
|
19
|
Year-on-year growth (%)
|
29.9
|
23.2
|
29.2
|
20.3
|
14.4
|
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