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

Household Appliance Manufacturing

1. Overall scale and distribution

In February 2008, there were 2,418 enterprises in household appliance manufacturing industry, with 91,900 employees, a year-on-year growth of 8.83%. The total assets value reached 363.1 billion yuan, up by 16.42% on a year-on-year basis. The total indebtedness was 242.2 billion yuan, up by 16.27% on a year-on-year basis. In November 2008, there were 2,510 enterprises in household appliance manufacturing industry with 97,300 employees, up by 4.49% on a year-on-year basis. The total assets value reached 399 billion yuan, up by 10.6% on a year-on-year basis. The total indebtedness was 263.3 billion yuan, up by 10.66% on a year-on-year basis.

Figure 4 57 Scale of household appliance manufacturing industry

Unit: 10,000 persons, 100 million RMB, %

Time	Number of enterprises	Number of employees	Year-on- year increase	Asset value	Year-on- year increase	Debt	Year-on- year increase
2007-02	2118	8.19	8.51	3095	12.74	2078	18.65
2007-05	2157	8.51	6.62	3359	12.08	2276	14.72
2007-08	2203	8.76	7.08	3447	14.32	2318	18.49
2007-11	2246	9.13	9.02	3584	15.84	2370	15.28
2008-02	2418	9.19	8.83	3631	16.62	2422	16.27
2008-05	2444	9.69	10.37	3908	15.93	2623	15.18
2008-08	2470	9.74	8.03	3932	13.53	2593	11.65
2008-11	2510	9.73	4.49	3990	10.6	2633	10.66

Source: China National Light Industry Council

2. Production and sales

In February 2008, the total output value of household appliance manufacturing industry reached 91.847 billion yuan, up by 20.25% on a year-on-year basis. In November, the cumulative output value was 624.253 billion yuan, up by 14.62% on a year-on-year basis. In February, the sales value of household appliance manufacturing industry was 89.169 billion yuan, up by 24.36% on a year-on-year basis. In November, the cumulative sales value was 601.258 billion yuan, up by 13.61% on a year-on-year basis. The sales-output ratio of this industry in February was 97.09% and dropped slightly to 96.32% in November. The value of manufactured goods in February was 37.6 billion yuan, up by 22.8% on a year-on-year basis, and increased to 39.602 billion yuan in November, up by 11.67% on a year-on-year basis.

Figure 4 58 Production and sales of household appliance manufacturing 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	761.09	24.46	705.64	25.96	92.71	300.65	14.52
2007-05	2356.87	26.17	2360.14	29.99	100.14	348.45	29.70
2007-08	3914.63	28.76	3878.58	30.58	99.08	333.58	22.90
2007-11	5482.82	26.65	5319.11	29.73	97.01	345.96	14.92
2008-02	918.47	20.25	891.69	24.36	97.09	376.00	22.80
2008-05	2849.17	22.60	2842.32	20.63	99.76	432.64	19.24
2008-08	4579.48	18.47	4512.30	15.82	98.53	393.93	15.14
2008-11	6242.53	14.62	6012.58	13.61	96.32	396.02	11.67

Source: China National Light Industry Council

3. Costs and expenses

In February 2008, the sales costs of household appliance manufacturing industry reached 75.73 billion yuan, up by 23.28% on a year-on-year basis. In November, the cumulative sales costs stood at 517.243 billion yuan, up by 12.86% on a year-on-year basis. The sales expense in February approached 6.166 billion yuan, up by 33.68% on a year-on-year basis. The cumulative sales expense in November was 37.559 billion yuan, up by 12.38% on a year-on-year basis. In February 2008, the management expenses and financial costs of household appliance manufacturing industry were 3.516 billion yuan and 0.775 billion yuan respectively, up by 30.86% and 53.83%. In November, the cumulative management expenses and financial costs were 20.998 billion yuan and 4.891 billion yuan, up by 18.52% and 26.37% on a year-on-year basis.

Figure 4 59 Costs and expenses of household appliance manufacturing 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	604.86	24.93	45.30	21.14	26.41	8.02	5.06	17.32
2007-05	2041.89	30.71	151.20	25.52	73.59	17.84	16.05	34.62
2007-08	3343.81	31.76	252.07	22.74	121.87	15.77	26.60	28.45
2007-11	4578.85	29.15	339.78	25.67	174.81	19.43	38.18	27.45
2008-02	757.30	23.28	61.66	33.68	35.16	30.86	7.75	53.83
2008-05	2445.57	19.90	182.49	20.14	91.88	23.95	23.82	47.42
2008-08	3895.59	15.90	283.04	12.14	153.26	23.78	37.51	38.96
2008-11	5172.43	12.86	375.59	12.38	209.98	18.52	48.91	26.37

Source: China National Light Industry Council

4. Profits

In February 2008, the cumulative profits of household appliance manufacturing industry reached 2.399 billion yuan, up by 56.26% on a year-on-year basis. In November, the cumulative profits were 17.835 billion yuan, up by 8.57% on a year-on-year basis. In February 2008, 631 enterprises or 26.10% of all companies suffered losses. In November, the cumulative number of enterprises in the red was 513 for 20.44% of all companies. The number of loss-suffering enterprises was declining. In February, the total loss reached 727 million yuan, up by 17.09% on a year-on-year basis. In November, the cumulative loss stood at 2.625 billion yuan, up by 26.78% on a year-on-year basis. The year-on-year growth of total loss saw a steady rise.

Figure 4 60 Profits of household appliance 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	13.65	33.32	548	25.87	7.47	24.41
2007-05	61.00	50.09	483	22.39	12.04	13.65
2007-08	119.36	65.90	431	19.56	17.10	14.35
2007-11	163.00	65.82	390	17.36	21.17	-12.26
2008-02	23.99	56.26	631	26.10	7.27	17.09
2008-05	84.81	37.11	561	22.95	13.69	19.33
2008-08	140.48	17.37	516	20.89	20.89	23.61
2008-11	178.35	8.57	513	20.44	26.25	26.78

Source: China National Light Industry Council

5. Operation performance

In February 2008, the product sales revenue growth of household appliance manufacturing industry stood at 55.18%, down by 23.93 percentage points on a year-on-year basis. In November, the product sales revenue growth was 52.57%, down by 12.29 percentage points on a year-on-year basis. In February 2008, the value-added ratio of capital maintenance was 142.93%, up by 21.24 percentage points on a year-on-year basis. In November, the ratio became 131.45%, down by 5.98 percentage points on a year-on-year basis. In February 2008, the asset-liability ratio of household appliance manufacturing industry was 59.05%, down by 1.46 percentage points on a year-on-year basis. In November, the asset-liability ratio was 58.49%, down by 2.85 percentage points on a year-on-year basis. In February 2008, the net amount growth rate of accounts receivable was 44.45%, down by 28.65 percentage points on a year-on-year basis. In November, the rate was 10.55%, down by 30.84 percentage points. The net amount growth rate of accounts receivable encountered a sharp decline.

Figure 4 61 Operation performance of household appliance 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	31.25	6.55	121.69	12.75	60.51	2.44	15.8	-3.68
2007-05	34.76	8.51	124.91	3.08	60.87	1.72	24.78	1.04
2007-08	40.28	11.37	135.27	14.59	60.95	3.05	32.54	9.75
2007-11	43.56	16.05	137.43	14.84	61.34	1.59	41.39	23.34
2008-02	55.18	23.93	142.93	21.24	59.05	-1.46	44.45	28.65
2008-05	54.80	20.04	141	16.09	60.26	-0.61	35.82	11.04
2008-08	52.57	12.29	132.79	-2.48	60.25	-0.7	26.31	-6.23
2008-11	42.41	-1.15	131.45	-5.98	58.49	-2.85	10.55	-30.84

Source: China National Light Industry Council

6. Production and sales by region

In 2008, Guangdong achieved 289.711 billion yuan output value of household appliance manufacturing industry, accounting for 46.41% of the industry’s total output, the highest in the country, up by 18.33% on a year-one-year basis. The total output value of Shandong was 68.906 billion yuan, accounting for 11.04%, up by 13.52% on a year-one-year basis. The total output value of this industry was relatively large in Zhejiang, Jiangsu and Shanghai. The total output value and sales value were small in Qinghai, Shaanxi, Shanxi and Heilongjiang. In this year, Qinghai ranked the first in China in sales-output ratio of 570.19%, followed by Hunan, Beijing, and Shanghai. The ratio of Shanxi was 48.46% as the lowest in China. Anhui, Guizhou and Shaanxi had a relatively low sales-output ratio.

Figure 4-60 Production and sales distribution of household appliance 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	6242.53	14.62	100	6012.58	13.61	100	96.32
Beijing	15.57	-8.48	0.25	17.26	-3.23	0.29	110.79
Tianjin	138.02	1.46	2.21	139.61	-1.12	2.32	101.15
Hebei	23.01	43.87	0.37	23.88	43.32	0.40	103.79
Shanxi	0.37	0	0.01	0.18	0	0.00	48.46
Inner Mongolia	9.66	7.89	0.15	9.66	7.89	0.16	100.00
Liaoning	62.01	22.26	0.99	62.22	17.25	1.03	100.34
Jilin	0.78	25.56	0.01	0.77	30.2	0.01	98.33
Heilongjiang	0.07	-4.13	0.00	0.06	-36.21	0.00	85.04
Shanghai	274.77	8.06	4.40	279.36	10.09	4.65	101.67
Jiangsu	600.65	1.61	9.62	605.40	3.21	10.07	100.79
Zhejiang	623.63	9.03	9.99	594.73	8.58	9.89	95.37
Anhui	423.24	30.11	6.78	338.60	23.86	5.63	80.00
Fujian	71.09	-0.67	1.14	64.75	-0.28	1.08	91.09
Jiangxi	63.03	18.55	1.01	59.11	18.87	0.98	93.78
Shandong	689.06	13.52	11.04	706.89	17.46	11.76	102.59
Henan	74.42	11.46	1.19	77.68	28.13	1.29	104.38
Hubei	113.97	18.97	1.83	112.57	7.34	1.87	98.77
Hunan	20.77	9.68	0.33	21.69	12.22	0.36	104.46
Guangdong	2897.11	18.33	46.41	2765.16	15.5	45.99	95.45
Guangxi	7.23	54.2	0.12	6.18	83.97	0.10	85.48
Chongqing	76.98	13.82	1.23	77.05	27.7	1.28	100.09
Sichuan	26.21	89	0.42	23.56	124.94	0.39	89.89
Guizhou	27.32	12.63	0.44	23.03	8.99	0.38	84.32
Shaanxi	3.54	63.86	0.06	3.08	56.94	0.05	86.96
Qinghai	0.02	-37.52	0.00	0.09	71.6	0.00	570.19

Source: China National Light Industry Council

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