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

Source: China National Light Industry Council

4.3.4 Profits

In February 2008, the cumulative profits of food manufacturing industry reached 6.77 billion yuan, up by 38.98% on a year-on-year basis. In November, the cumulative profits were 39.35 billion yuan, up by 26.88% on a year-on-year basis. The profit growth of food manufacturing industry declined in 2008. In February, 1,270 enterprises or 19.24% of all the companies suffered losses. In November, the cumulative number of enterprises in the red was 1,194 or 16.81% of all the companies. In February, the total loss reached 826 million yuan, up by 23.72% on a year-on-year basis. In November, the cumulative loss stood at 3.59 billion yuan, up by 19.05% on a year-on-year basis.

In November 2008, seasoning and fermented goods manufacturing realized the most profit of 6.37 billion yuan, accounting for 16.20% and up by 46.78% on a year-on-year basis. The profits of instant food manufacturing and bakery food manufacturing were large. The profits of canning were small. Seasoning and fermented goods manufacturing and candy, chocolate and preserved food manufacturing both saw a fast year-one-year growth.

Liquid milk and dairy product manufacturing saw relatively more loss-suffering enterprises of 214 with a scale proportion of 17.2%. Candy, chocolate and preserved food manufacturing had the least loss-suffering enterprises. The year-on-year growth of loss-suffering enterprise numbers were fast in liquid milk and dairy product manufacturing but slow in candy, chocolate and preserved food manufacturing. Liquid milk and dairy product manufacturing enterprises suffered a relatively large amount of loss of 1.38 billion yuan, increasing sharply by 192.95% on a year-on-year basis. The year-on-year increase of loss amount in candy, chocolate and preserved food manufacturing, seasoning and fermented goods manufacturing and other food manufacturing dropped fast.

Figure4-16 Profits of food manufacturing 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	48.16	28.03	1221	20.71	6.90	12.47
2007-05	127.04	35.37	1225	20.22	16.62	28.28
2007-08	211.32	37.11	1234	19.82	25.90	19.87
2007-11	314.14	33.20	1087	16.82	31.46	18.37
2008-02	67.68	38.98	1270	19.24	8.26	23.72
2008-05	183.05	45.38	1249	18.46	14.23	-11.15
2008-08	302.05	45.01	1216	17.57	20.74	-19.81
2008-11	393.46	26.88	1194	16.81	35.92	19.05
Of which: Bakery food manufacturing	52.16	43.12	153	14.18	3.61	20.68
Candy, chocolate and preserved food manufacturing	44.94	46.31	77	12.94	1.64	-43.63
Instant food manufacturing	62.85	36.43	151	14.65	3.99	44.34
Liquid milk and dairy product manufacturing	43.73	-28.12	214	28.31	13.84	192.95
Canning	19.68	64.01	162	19.49	2.05	-8.95
Seasoning and fermented goods manufacturing	63.74	46.78	150	15.34	4.84	-40.35
Other food manufacturing	106.35	31.93	287	15.67	5.95	-7.33

Source: China National Light Industry Council

4.3.5 Operation performance

In February 2008, the product sales revenue of food manufacturing industry grew at 31.68%, up by 4.72 percentage points on a year-on-year basis. In November, the product sales revenue grew at 28.51%, down by 0.58 percentage point on a year-on-year basis. In February 2008, the value-added ratio of capital maintenance was 114.21%, down by 3.43 percentage points on a year-on-year basis. In November, the ratio became 118.38%, up by 1.62 percentage point on a year-on-year basis. In February 2008, the asset-liability ratio of food manufacturing industry was 55.41%, up by 0.09 percentage point on a year-on-year basis. In November, the asset-liability ratio was 55.82%, up by 0.16 percentage point on a year-on-year basis. In February 2008, the net amount growth rate of accounts receivable was 22.69%, up by 6.15 percentage points on a year-on-year basis. In November, the rate was 19.91%, up by 3.55 percentage points on a year-on-year basis.

Figure4-17 Operation performance of food manufacturing 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	26.96	-4.79	117.64	2.79	55.32	-0.59	16.54	0.77
2007-05	27.88	-2.96	117.2	-4.53	55.43	0.08	20.78	5.46
2007-08	29.37	0.53	116.89	-4.28	55.70	0.11	18.43	4.28
2007-11	29.09	2.96	116.76	1.20	55.66	-0.07	16.36	1.78
2008-02	31.68	4.72	114.21	-3.43	55.41	0.09	22.69	6.15
2008-05	33.48	5.60	115.99	-1.21	55.81	0.38	13.84	-6.94
2008-08	31.90	2.53	112.22	-4.67	58.01	2.31	18.8	0.37
2008-11	28.51	-0.58	118.38	1.62	55.82	0.16	19.91	3.55

Source: China National Light Industry Council

4.3.6 Investment in fixed assets

The cumulative investment in fixed assets of food manufacturing industry in 2008 approached 113.72 billion yuan, up by 17.63% on a year-on-year basis. In February, the cumulative investment in fixed assets was 4.53 billion yuan, up by 33.24% on a year-on-year basis, at the highest speed throughout the year. In March the cumulative investment in fixed assets reached12.82 billion yuan increasing slowly by 16.02% on a year-on-year basis. This industry in 2008 kept a stable development in investment in fixed assets on the whole.

Figure4-18 Investment in fixed assets of food manufacturing industry Unit: 100 million RMB, %

Time	Cumulative aggregate investment amount	Amount over the same period last year	Year-on-year increase
2008-02	45.3	34.0	33.24
2008-03	128.2	110.5	16.02
2008-04	213.9	169.6	26.12
2008-05	310.4	261.8	18.56
2008-06	474.5	398.8	18.98
2008-07	589.5	499.5	18.02
2008-08	692.1	584.4	18.43
2008-09	799.5	672.7	18.85
2008-10	906.8	741.0	22.38
2008-11	1020.4	841.1	21.32
2008-12	1137.2	966.8	17.63

Source: China's National Bureau of Statistics

4.3.7 Production and sales by region

In 2008, Shandong was on the top of total industrial output of food manufacturing industry, which was138 billion yuan, accounting for 19.72% of China's total output, up by 25.69% on a year-on-year basis. The total output value of Henan was 73.5 billion yuan, accounting for 10.50%, up by 46.19% on a year-on-year basis. The total output value of this industry was relatively large in Liaoning, Jiangsu and Guangdong. The total output value and sales value were small in Tibet, Ningxia, Guizhou and Hainan. In this year, Beijing ranked the first in China in sales-output ratio of 126.16%, followed by Hainan, Shanghai and Tibet. The ratio of Tianjin was 67.78% as the lowest in China. Gansu, Shanxi and Shaanxi had a relatively low sales-output ratio.

Figure4-19 Sales-output distribution of food manufacturing 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	6997.07	30.37	100	6662.10	28.51	100	95.21
Beijing	135.22	8.11	1.93	170.60	17.71	2.56	126.16
Tianjin	186.59	128.83	2.67	126.46	48.93	1.90	67.78
Hebei	362.23	14.32	5.18	352.28	13.98	5.29	97.26
Shanxi	55.31	25.01	0.79	42.77	12.49	0.64	77.34
Inner Mongolia	437.60	27.67	6.25	410.45	24.05	6.16	93.80
Liaoning	229.35	44.48	3.28	223.87	43.21	3.36	97.61
Jilin	126.60	39.22	1.81	113.72	38.08	1.71	89.82
Heilongjiang	231.18	34.65	3.30	221.01	34.51	3.32	95.60
Shanghai	298.62	19.07	4.27	343.07	24.05	5.15	114.89
Jiangsu	271.65	20.06	3.88	264.60	21.43	3.97	97.40
Zhejiang	257.56	22.48	3.68	246.10	19.65	3.69	95.55
Anhui	165.31	29.09	2.36	145.70	21.60	2.19	88.13
Fujian	308.88	29.52	4.41	295.02	28.88	4.43	95.51
Jiangxi	119.07	52.14	1.70	117.81	58.00	1.77	98.94
Shandong	1380.03	25.69	19.72	1356.05	28.73	20.35	98.26
Henan	735.04	46.19	10.50	646.15	35.07	9.70	87.91
Hubei	165.79	46.00	2.37	154.13	45.98	2.31	92.97
Hunan	241.05	30.54	3.45	227.68	30.62	3.42	94.45
Guangdong	651.08	23.01	9.31	616.21	20.95	9.25	94.65
Guangxi	60.14	48.36	0.86	48.67	45.70	0.73	80.92
Hainan	18.81	15.85	0.27	22.28	27.28	0.33	118.49
Chongqing	49.30	47.60	0.70	50.85	38.41	0.76	103.13
Sichuan	234.10	49.77	3.35	220.59	53.32	3.31	94.23
Guizhou	32.07	33.99	0.46	28.84	36.22	0.43	89.95
Yunnan	28.19	32.66	0.40	29.04	41.66	0.44	103.01
Tibet	0.71	-17.15	0.01	0.76	2.09	0.01	107.40
Shaanxi	95.32	13.99	1.36	82.85	23.21	1.24	86.92
Gansu	22.63	13.07	0.32	17.03	4.42	0.26	75.25
Qinghai	4.28	17.91	0.06	3.66	19.08	0.05	85.64
Ningxia	31.80	32.17	0.45	29.89	26.29	0.45	93.98
Xinjiang	61.57	20.99	0.88	53.97	21.23	0.81	87.66