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

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 5 128 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 5-7 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 5 129 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

Source: China National Light Industry Council

The asset growth ratio of leather, fur, feather/down, and their product industry tended to decline from 2004 to 2008. It peaked at 24.7% in 2004 and stood at 17.6% in 2005, 17.9% in 2007 and 13.7% in the first 11 months in 2008. The asset-liability ratio maintained a steady change, which reached 59.3% in 2004, 58.7% in 2005 and 56.6% in the first 11 months of 2008. The profit grew rapidly. The profit growth rate was 25.6% in 2004, 28.9% in 2006 and 43.1% in 2007. It still kept a growth rate of 31.7% in the first 11 months of 2008. The total industrial output value growth of this industry stood at 21.6% in 2004, 19.8% in 2006 and 16.6% in the first 11 months of 2008. The annual employee growth ratio decreased by 1.0% in the first 11 months of 2008 at the lowest speed in recent 5 years. It peaked at 27.7% in 2004. This ratio basically kept declining in the 5 years.

Figure 5 130 Profit growth of leather, fur, feather/down, and their product industry 2004-2008

Unit: %

Item	Jan.- Nov. 2008	2007	2006	2005	2004
Asset growth ratio	13.7	17.9	14.9	17.6	24.7
Asset-liability	56.6	56.6	56.9	58.7	59.3
Profit growth ratio	31.7	43.1	28.9	38.1	25.6
Growth ratio of total industrial output value	16.6	24.2	19.8	25.2	21.6
Annual employee growth ratio	-1.0	4.6	7.3	8.3	27.7

Source: China National Light Industry Council

The down garment output was 131.820 million pieces in 2004, up by 12.3% on a year-on-year basis and 205.605 million pieces in 2008, up by 13.6% on a year-on-year basis. The light leather output was 51.019 million m² in 2004, up by 16.7%on a year-on-year basis，and 64.204 million m², down by 1.1% on a year-on-year basis in 2008. The leather shoes output was 210 million pairs in 2004, up by 15.1% on a year-on-year basis and 330 million pairs in 2008, up by 3.0% on a year-on-year basis. The leather and fur garment output was 208,000 pieces in 2004, up by 18.0%on a year-on-year basis and 385,000 pieces in 2008, up by 12.1% on a year-on-year basis. The output of the whole industry basically declined in 2008, in which, down garment output saw the sharpest drop while leather and fur garment output still grew fast.

Figure 5 131 Major products output of leather, fur, feather/down, and their product industry 2004-2008

Name	Down garment	Year-on-year increase or decrease	Light leather	Year-on-year increase or decrease	Leather shoes	Year-on-year increase or decrease	Leather and fur garment	Year-on-year increase or decrease
	(10,000 pieces)	(%)	(10,000 m²)	(%)	(100 million pairs)	(%)	(10,000 pieces)	(%)
2008	20560.5	-13.6	6420.4	-1.1	3.3	3.0	38.5	12.1
2007	25253.1	3.2	6838.4	9.2	3.4	14.3	28.8	-7.7
2006	22391.2	37.5	7241.9	29.3	3.1	14.4	20.8	-20.6
2005	15919.1	30.8	5453.1	19.2	2.5	13.9	20.9	-0.5
2004	13182.0	12.3	5101.9	16.7	2.1	15.1	20.8	18.0

Source: China National Light Industry Council

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