China Council for the Promotion of International Trade (ccpit) 2009 Preface

Paper making and paper product industry

1. Overall scale and distribution

In February 2008, there were 8,242 enterprises in paper making and paper product industry, with 132,600 employees, a year-on-year growth of 4.74%. The total assets value reached 602.5 billion yuan, up by 15.9% on a year-on-year basis. The total indebtedness was 358.4 billion yuan, up by 14.57% on a year-on-year basis. In November 2008, there were 8,715 enterprises in paper making and paper product industry, with 140,700 employees, up by 2.61% year-on-year. The total assets value reached 698.3 billion yuan, up by 16.86% year-on-year. The total indebtedness was 413.9 billion yuan, up by 15.91% on a year-on-year basis.

In November 2008, the number of paper making enterprises peaked at 5,105, accounting for 58.58% in paper making and paper product industry. Paper making enterprises were 3,494, accounting for 40.19%. Paper pulp manufacturing enterprises were 116, accounting for 1.33%. Paper making enterprises had a large number of employees, reaching 75,200, accounting for 53.45%, and a year-on-year increase of 2.48%. The employees of paper product industry were 62,100, accounting for 44.14%, up by 3.0% on a year-on-year basis. The employees of paper pulp industry were 3,400, down by 1.55%. The total assets of paper making enterprises were the highest (469.7 billion yuan in November), accounting for 67.26% and up by 17.5% on a year-on-year basis. The proportion of the total assets value of paper product manufacturing industry was 26.29%, up by 15.01% on a year-on-year basis. Paper making industry had a heavy debt of 280.6 billion yuan, accounting for 67.79%, up by 16.65% on a year-on-year basis. Paper product manufacturing had a total debt of 103.4 billion yuan, up by 11.44% on a year-on-year basis. Paper pulp manufacturing had total debts of 30.0 billion yuan, up by 15.91% on a year-on-year basis.

Figure 4 36 Scale of paper making and paper product 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	7853	12.71	4.06	5242	14.98	3174	13.42
2007-05	7946	13.13	3.54	5538	16.16	3346	14.71
2007-08	8049	13.38	3.0	5694	14.53	3412	11.82
2007-11	8272	13.64	3.88	5981	16.65	3554	14.45
2008-02	8242	13.26	4.74	6025	15.9	3584	14.57
2008-05	8392	13.63	4.64	6377	15.93	3811	14.39
2008-08	8550	13.91	4.26	6736	17.82	4010	16.3
2008-11	8715	14.07	2.61	6983	16.86	4139	15.91
Of which: paper pulp manufacturing	116	0.34	-1.55	450	17.83	300	25.93
Paper making	3494	7.52	2.48	4697	17.5	2806	16.65
Paper product manufacturing	5105	6.21	3.0	1836	15.01	1034	11.44

Source: China National Light Industry Council

2. Production and sales

The total output value of paper making and paper product industry reached 101.52 billion yuan in February 2008, up by 25.7% on a year-on-year basis. The cumulative output value was 700.571 billion yuan in November, a year-on-year increase of 24.64%. The sales value of paper making and paper product industry stood at 97.415 billion yuan, a year-on-year increase of 26.89%. The cumulative sales value was 664.744 billion yuan in November, a year-on-year increase of 21.86%. The sales-output ratio of paper making and paper product industry was 5.96% in February, declining slightly to 94.89% in November. The industry made 27.524 billion yuan of manufactured products in February, up by 8.69% on a year-on-year basis, and increased to 43.623 billion yuan in November, up by 40.7% on a year-on-year basis.

The total industrial output value of the paper pulp manufacturing stood at 16.838 billion yuan in November 2008, accounting for 2.4%, and up by 13.64% on a year-on-year basis. The total industrial output value of paper making reached 418.558 billion yuan, accounting for 59.75%, and up by 23.56% on a year-on-year basis. The total industrial output value of paper product manufacturing was 265.175 billion yuan, accounting for 37.85%, and up by 27.2% on a year-on-year basis. The sales-output ratio of paper product manufacturing, paper making and paper pulp manufacturing were 95.08%, 94.85%, and 92.72%, respectively. Paper making enterprises produced a relatively large value of 29.769 billion yuan in November, up by 53.05% on a year-on-year basis. Manufactured products value of paper pulp manufacturing and paper product manufacturing were 1.437 billion yuan, 12.417 billion yuan, respectively.

Figure 4 37 Production and sales of paper making and paper product 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 products	Year-on-year increase
2007-02	808.49	20.64	764.41	22.75	94.55	256.99	11.52
2007-05	2308.05	22.03	2244.02	24.47	97.23	284.65	8.61
2007-08	3933.26	22.35	3803.49	23.11	96.70	286.34	7.53
2007-11	5651.55	24.10	5486.79	24.89	97.08	301.25	13.19
2008-02	1015.20	25.70	974.15	26.89	95.96	275.24	8.69
2008-05	2974.62	29.89	2867.63	28.40	96.40	317.34	13.02
2008-08	5030.16	28.66	4801.04	26.31	95.44	378.97	32.16
2008-11	7005.71	24.64	6647.44	21.86	94.89	436.23	40.70
Of which: paper pulp manufacturing	168.38	13.46	156.13	7.13	92.72	14.37	127.20
Paper making	4185.58	23.56	3970.04	19.98	94.85	297.69	53.05
Paper product manufacturing	2651.75	27.20	2521.28	26.03	95.08	124.17	13.69

Source: China National Light Industry Council

3. Costs and expenses

The sales costs of paper making and paper product industry in February 2008 were 84.011 billion yuan, up by 26.97% on a year-on-year basis. The cumulative sales costs reached 5880.466 billion yuan in November, up by 23.41% on a year-on-year basis. The sales expense in February approached 2.686 billion yuan, up by 25.45% on a year-on-year basis. The cumulative sales expense in November was 23.873 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 19.592 billion yuan and 10.355 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 13.051 billion yuan, accounting for 2.25% and up by 15.81% on a year-on-year basis. The sales costs of paper making was 347.451 billion yuan, accounting for 59.86% and up by 21.46%. The sales costs of paper product manufacturing was 219.964 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 15.051 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 7.072 billion yuan respectively, accounting for 52.67% and 68.3%. The management expenses and financial costs of paper product manufacturing were 8.523 billion yuan and 2.408 billion yuan respectively, up by 23.05% and 2% on a year-on-year basis.

Figure 4 38 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. Profits

In February 2008, the cumulative profits of paper making and paper product industry reached 4.929 billion yuan, up by 3.313% on a year-on-year basis. In November, the cumulative profits were 35.565 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 3.696 billion yuan, up by 14.56% on a year-on-year basis.

In November 2008, paper making enterprises realized the most profit of 22.822 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 2.025 billion yuan, accounting for 54.79%, down by 4.82% on a year-on-year basis. Paper making enterprises lost 1.227 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.

Figure 4 39 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

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.

Figure 4 40 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

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 41 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

7. Production and sales by region

In 2008, Shandong boasted 147.839 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.

Figure 4 42 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

Source: China National Light Industry Council

3.