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

Source: China National Light Industry Council

The sales cost of arts and crafts industry increased from 93.6 billion yuan in 2004 to 222.4 billion yuan in the first 11 months of 2008. Among that, the sales cost was 151.0 billion yuan in 2006 and 202.8 billion yuan in 2007, up by 34.3% on a year-on-year basis. The sales cost increased by 23.4% on a year-on-year basis in the first 11 months of 2008. The management expense was 4.9 billion yuan in 2004, up by 22.5% on a year-on-year basis, and 8.2 billion yuan in 2008, up by 11.8% on a year-on-year basis. The management expense peaked at 8.6 billion yuan in 2007, up by 25.5% on a year-on-year basis at the fastest speed in recent 3 years. The financial expense was 900 million yuan in 2004, up by 16.8% on a year-on-year basis, 1.2 billion yuan in 2005, up by 35.9% on a year-on-year basis, 1.4 billion yuan in 2006, up by 25.2%on a year-on-year basis and 2.0 billion yuan in 2007, up by 41.3% on a year-on-year basis. The financial expense dropped sharply to 2.2 billion yuan in the first 11 months of 2008, up by 24.1% on a year-on-year basis.

Figure 5-47 Costs and expenses of arts and crafts industry 2004-2008

Item	Jan.-Nov. 2008	2007	2006	2005	2004
Sales costs (100million RMB)	2224	2028	1510	1209	936
Year-on-year growth (%)	23.4	34.3	24.9	29.2	14.6
Management expenses (100million RMB)	82	86	68	57	49
Year-on-year growth (%)	11.8	25.5	19.2	18.3	22.5
Financial expenses (100million RMB)	22	20	14	12	9
Year-on-year growth (%)	24.1	41.3	25.2	35.9	16.8

Source: China National Light Industry Council

The asset growth rate of arts and crafts industry kept stable from 2005 to 2007. It reached 13.0% in 2004, grew to 22.6% in 2005, stood at 26.2% in 2007 and 15.6% in the first 11 months in 2008. The asset-liability rate maintained a steady change, which reached 55.1% in 2004, 53.8% in 2005 and 53.0% in the first 11 months of 2008. The profit growth kept going up from 2005 to 2007. The profit growth rate was 18.0% in 2004, 47.0% in 2005, 32.5% in 2006 and 35.3% in 2007. It kept a growth rate of 49.1% in the first 11 months of 2008. The industry saw a remarkable increase in profit growth. The total industrial output value growth of this industry stood at 12.1% in 2004, 22.1% in 2006 and 27.3% in the first 11 months of 2008. The annual employee growth rate decreased by 4.3% in the first 11 months of 2008 at the lowest speed in recent 5 years. It stood at 7.1% in 2004. This rate declined for 2 consecutive years.

Figure 5-48 Profit growth of arts and crafts industry 2004-2008 Unit: (%)

Item	Jan.- Nov. 2008	2007	2006	2005	2004
Asset growth rate	15.6	26.2	17.6	22.6	13.0
Asset-liability	53.0	53.9	53.1	53.8	55.1
Profit growth rate	49.1	35.3	32.5	47.0	18.0
Growth rate of total industrial output value	27.3	35.4	22.1	28.9	12.1
Annual employee growth rate	-4.3	-1.7	6.8	5.4	7.1

Source: China National Light Industry Council

5.10 Household appliance manufacturing industry

In 2008, household appliance manufacturing industry generated 9% of the total industrial output value of light industry. As an important sector of light industry, it includes the following sectors: household refrigeration appliance manufacturing, household air conditioner manufacturing, household ventilation appliance manufacturing, household kitchen appliance manufacturing, household cleaning and sanitary appliance manufacturing, household beauty and health care appliance manufacturing, household electrical appliance fittings manufacturing and other household appliance manufacturing.

The number of household appliance manufacturing industry increased from 1,972 in 2004 to 2,510 in November 2008. During the same period, the asset size increased from 237.0 billion yuan in 2004 to 399.0 billion yuan. The total industrial output value increased from 326.9 billion yuan to 624.3 billion yuan. The industrial sales value increased from 320.3 billion yuan to 601.3 billion yuan. The contribution margin increased from 8.1 billion yuan to 17.8 billion yuan. The employees increased from 71,000 to 97,000.

Figure 5-49 Scale growth of household appliance manufacturing industry 2004-2008

Item	Jan.- Nov. 2008	2007	2006	2005	2004
Number of enterprises	2510	2420	2135	1918	1972
Average annual employees (10,000 persons)	9.7	9.3	8.5	7.7	7.1
Total asset（100 million yuan）	3990	3595	3081	2792	2370
Total industrial output value（100 million yuan）	6243	5969	4786	4014	3269
Industrial sales revenue（100 million yuan）	6013	5818	4718	3918	3203
Contribution margin（100 million yuan）	178	198	119	106	81

Source: China National Light Industry Council

The sales cost of household appliance manufacturing industry increased from 273.8 billion yuan in 2004 to 517.2 billion yuan in the first 11 months of 2008. Among that, the sales cost was 398.0 billion yuan in 2006 and 494.7 billion yuan in 2007, up by 24.3% on a year-on-year basis. The sales cost increased 12.9% on a year-on-year basis in the first 11 months of 2008. The management expense was 11.8 billion yuan in 2004 and grew to 21.0 billion yuan in 2008, up by 18.5% on a year-on-year basis. The financial expense was 2.1 million yuan in 2004, up by 1.2% on a year-on-year basis, 3.4 billion yuan in 2006, up by 12.1% on a year-on-year basis, and 3.4 billion yuan in 2007, up by 28.0% on a year-on-year basis. The financial expense reached 4.9 billion yuan in the first 11 months of 2008, up by 26.4% on a year-on-year basis.

Figure 5-50 Costs and expenses of household appliance manufacturing industry 2004-2008

Item	Jan.- Nov. 2008	2007	2006	2005	2004
Sales costs (100million RMB)	5172	4947	3980	3295	2738
Year-on-year growth (%)	12.9	24.3	20.8	20.3	33.9
Management expenses (100million RMB)	210	205	180	145	118
Year-on-year growth (%)	18.5	13.8	23.7	22.8	14.0
Financial expenses (100million RMB)	49	43	34	30	21
Year-on-year growth (%)	26.4	28.0	12.1	45.4	1.2

Source: China National Light Industry Council

The asset growth rate of household appliance manufacturing industry kept stable from 2004 to 2007. It reached 17.1% in 2004, grew to 17.8% in 2005 and dropped to 10.4% in 2006 and 9.9% in the first 11 months in 2008 at the lowest speed in the past 5 years. The asset-liability rate maintained a steady change, which reached 63.4% in 2004, 64.2% in 2005 and 66.0% in the first 11 months of 2008. The asset-liability rate basically kept unchanged in past 3 years. The profit growth increased rapidly from 2005 to 2007, especially in recent 2 years. The profit growth rate was -9.2% in 2004 but reached 31.4% in 2005, 12.7% in 2006 and 65.4% in 2007. It kept a growth rate of 67.1% in the first 11 months of 2008. The total industrial output value growth of this industry stood at 27.0% in 2004, 19.2% in 2006 and 13.9% in the first 11 months of 2008. The annual employee growth rate increased by 4.5% in the first 11 months of 2008, at the lowest speed in recent 4 years. It peaked at 10.1% in 2006.

Figure 5-51 Profit growth of household appliance manufacturing industry 2004-2008 Unit: (%)

Item	Jan.-Nov. 2008	2007	2006	2005	2004
Asset growth rate	9.9	16.7	10.4	17.8	17.1
Asset-liability	66.0	65.3	67.7	64.2	63.4
Profit growth rate	67.1	65.4	12.7	31.4	-9.2
Growth rate of total industrial output value	13.9	24.7	19.2	22.8	27.0
Annual employee growth rate	4.5	9.5	10.1	9.3	25.1

Source: China National Light Industry Council

The total output of household gas-cookers was 1.02 million in 2004, up by 2.9% on a year-on-year basis. It grew to 2.76 million in 2008, up by 19.2% on a year-on-year basis. The output of household washing machines reached 23.489 in 2004, up by 19.2% on a year-on-year basis and 42.31 in 2008, up by 11.1% on a year-on-year basis. The output of household vacuum cleaners was 25.718 in 2004, up by 6.3% on a year-on-year basis and 63.68 in 2008, up by 13.0% on a year-on-year basis. The output of household refrigerators was 30.33 in 2004, up by 30.0% on a year-on-year basis and 47.57 in 2008, up by 8.0% on a year-on-year basis. The output of household freezers was 6.283 in 2004, up by 21.3% on a year-on-year basis and 11.776 in 2008, down by 1.4% on a year-on-year basis. The output of household electric fans was 110.426 in 2004, up by 11.1% on a year-on-year basis and 138.91 in 2008, down by 11.0% on a year-on-year basis. The output of household air resistors was 70.47 in 2004, up by 47.2% on a year-on-year basis and 83.072 in 2008, down by 4.9% on a year-on-year basis. The output of household electric heaters was 472,000, up by 19.8% and 1.64 million in 2008, up by 7.9% on a year-on-year basis.

Figure 5-52 Output of major products of household appliance manufacturing industry 2004-2008

Item	Household gas-cooker	Year-on-year growth	Household washing machines	Year-on-year growth	Household vacuum cleaner	Year-on-year growth	Household refrigerator	Year-on-year growth
	(10,000)	(%)	(10,000)	(%)	(10,000)	(%)	(10,000)	(%)
2008	275.9	19.2	4231.2	11.1	6367.5	-13.0	4756.9	8.0
2007	230.5	16.9	3856.2	13.2	6714.0	14.0	4415.8	22.5
2006	188.8	21.6	3492.0	13.9	5267.9	-2.6	4199.6	28.9
2005	161.5	32.5	2952.6	15.9	4544.7	17.6	3105.6	2.6
2004	102.3	5.9	2348.9	19.2	2571.8	6.3	3033.4	30.0
Item	Freezer	Year-on-year growth	Household electric fan	Year-on-year growth	Air resistor	Year-on-year growth	Household electric heater	Year-on-year growth
	(10,000)	(%)	(10,000)	(%)	(10,000)	(%)	(10,000)	(%)
2008	1177.6	-1.4	13890.8	-11.0	8307.2	-4.9	163.7	7.9
2007	1187.0	39.2	14790.9	4.8	8991.7	24.1	103.7	-3.7
2006	818.4	4.2	13981.4	13.7	7943.0	5.5	84.0	23.0
2005	749.3	19.9	11593.7	7.5	7469.1	13.2	77.1	45.5
2004	628.3	21.3	11042.6	11.1	7046.6	42.6	47.2	19.8

Source: China National Light Industry Council

5.11 Bicycle manufacturing industry

In 2008，bicycle manufacturing industry generated 2.7%, a relatively small proportion of total industrial output value of light industry. It mainly includes bicycle, wheelchair and electric bikes.

The number of bicycle manufacturing enterprises increased from 903 in 2004 to 1,035 in November 2008. During the same period, the asset size increased from 31.3 billion yuan to 43.2 billion yuan. The total industrial output value and industrial sales value increased from 43.3 billion yuan and 42.5 billion yuan to 62.0 billion yuan and 60.1 billion respectively. The contribution margin increased from 1.3 billion yuan to 1.6 billion yuan. The employees increased from 18,000 persons to 19,000 persons.

Figure 5-53 Scale size of bicycle manufacturing industry 2004-2008

Item	Jan.-Nov. 2008	2007	2006	2005	2004
Number of enterprises	1035	1000	916	843	903
Average annual employees (10,000 persons)	1.9	1.8	1.8	1.7	1.8
Total asset（100 million yuan）	432	410	380	318	313
Total industrial output value（100 million yuan）	620	605	526	464	433
Industrial sales revenue（100 million yuan）	601	597	516	452	425
Contribution margin（100 million yuan）	16	15	14	13	13