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

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.

Figure 5 150 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 29.53161 billion yuan to 53.85453 billion yuan. The total industrial output value of dental care products manufacturing increased from 6.52865 billion yuan to 9.08537 billion yuan. The total industrial output value of spice and essence manufacturing increased from 12.59635 billion yuan to 31.00376 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%.

Figure 5 151 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.

Figure 5 152 Costs and expenses of daily chemicals manufacturing industry 2004-2008

Item	Jan.-Nov. 2008	2007	2006	2005	2004
Sales costs (100million RMB)	1228	1156	956	856	727
Year-on-year growth (%)	19.9	20.9	11.7	17.7	19.6
Management expenses (100million RMB)	110.9	115.3	96.4	88.2	79.6
Year-on-year growth (%)	18.7	19.6	9.3	10.8	22.8
Financial expenses (100million RMB)	6.4	7.7	7.2	5.8	8.5
Year-on-year growth (%)	-9.5	6.0	25.6	-31.8	14.0

Source: China National Light Industry Council

The asset growth rate of daily chemicals manufacturing industry peaked at 18.8% in 2004. It dropped to 8.4% in 2005. It was 15.5% in 2007 and 12.4% in the first 11 months of 2008. The asset-liability rate was 53.9% in 2004, 50.4% in 2005, and 47.8% in the first 11 months of 2008. The profit growth rate saw great changes from 2004 to 2008. It reached 29.3% in 2004 and dropped to 12.8% in 2005 and 1.6% in 2006. It grew rapidly to 32.2% in 2007 and stood at 25.3% in the first 11 months of 2008.

Figure 5 153 Profit growth of daily chemicals manufacturing industry 2004-2008

Unit: %

Item	Jan.-Nov. 2008	2007	2006	2005	2004
Asset growth rate	12.4	15.5	10.4	8.4	18.8
Asset-liability	47.8	49.0	49.1	50.4	53.9
Profit growth rate	25.3	32.2	1.6	12.8	29.3
Growth rate of total industrial output value	17.9	21.0	10.2	9.8	24.1
Annual employee growth rate	8.5	7.3	1.6	4.4	6.5

Source: China National Light Industry Council

The soap output was 655,000 tons in 2004, down by 2.9% on a year-on-year basis and 716,000 tons in 2005, up by 2.6% on a year-on-year basis. The output growth in 2006 went up to 4.0% on a year-on-year basis. It encountered a drop for 2 consecutive years from 2007 to 2008. It stood at 748,000 tons in 2008, down by 1.2% on a year-on-year basis. The synthetic detergent output growth saw a rise from 2004 to 2007. Its output was 334,000 tons in 2006, up by 12.4% on a year-on-year basis, at the fastest speed in recent 5 years. It was 5.979 million tons in 2008, down by 3.2% on a year-on-year basis. The synthetic washing-powder output was 273,000 tons in 2004, up by 9.2% on a year-on-year basis, 294,000 tons in 2005, up by 10.1% on a year-on-year basis and 387,000 tons in 2007, up by 9.8% on a year-on-year basis. It dropped by 6.7% on a year-on-year basis in 2008. The essence output growth rate peaked at 31.9% in 2006, the highest in recent 5 years. It suddenly dropped to 5.4% in 2007. It stood at 240,000 tons in 2008, up by 1.0% on a year-on-year basis. On the whole, the output growth of a majority of daily chemicals declined at different levels. The synthetic washing-powder output encountered an especially remarkable drop.

Figure 5 154 Output of major products of daily chemicals manufacturing industry 2004-2008

Item	Soap	Year-on-year increase or decrease	Synthetic detergent	Year-on-year increase or decrease	Synthetic washing-powder	Year-on-year increase or decrease	Essence	Year-on-year increase or decrease
	(10,000 tons)	(%)	(10,000 tons)	(%)	(10,000 tons)	(%)	(10,000 tons)	(%)
2008	74.8	-1.2	597.9	-3.2	33.5	-6.7	2.4	1.0
2007	75.3	-0.8	631.6	11.7	38.7	9.8	2.0	-5.4
2006	72.0	4.0	546.1	12.4	33.4	8.1	2.0	31.9
2005	71.6	2.6	494.4	14.1	29.4	10.1	1.1	14.8
2004	65.5	-2.9	436.4	11.5	27.3	9.2	0.8	8.3

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