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



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Furniture manufacturing industry

  1. Overall scale and distribution


In February 2008, there were 4,075 enterprises in furniture manufacturing industry, with 89,700 employees, a year-on-year growth of 8.37%. The total assets value reached 148.1 billion yuan, up by 12.1% on a year-on-year basis. The total indebtedness was 85.1 billion yuan, up by 14.27% on a year-on-year basis. In November 2008, there were 4,432 enterprises in furniture manufacturing industry with 92,100 employees, up by 0.61% on a year-on-year basis. The total assets value reached 173.0 billion yuan, up by 6.06% on a year-on-year basis. The total indebtedness was 99.8 billion yuan, up by 3.13% on a year-on-year basis.

In November 2008, the number of wood furniture manufacturing enterprises peaked at 2,763, accounting for 62.34% in furniture manufacturing industry. Medal furniture manufacturing enterprises were 959, accounting for 21.64%. The numbers of bamboo and cane furniture manufacturing and plastic furniture manufacturing enterprises were very small. Wood furniture manufacturing enterprises employed as many as 55,300 people in November, accounting for 60.04% of furniture industry, a year-on-year decrease of 1.63%. The number of employees of medal furniture manufacturing was 21,300, accounting for 23.13%, down by 1.38% on a year-on-year basis. The numbers of employees of bamboo and cane furniture manufacturing and plastic furniture manufacturing enterprises were 1,400 and 1,100, up by 6.56% and down by 4.61% on a year-on-year basis respectively.

The total assets of wood furniture manufacturing were the highest (99.0 billion yuan in November), accounting for 57.23% and up by 13.97% on a year-on-year basis. The proportion of the total assets value of medal furniture manufacturing was 23.7%. The proportion of bamboo and cane furniture manufacturing and plastic furniture manufacturing was 1.04% and 1.1% respectively. Wood furniture manufacturing had a heavy debt of 55.1 billion yuan, accounting for 55.21%, up by 9.78% on a year-on-year basis. Medal furniture manufacturing had a total debt of 24.7 billion yuan, accounting for 24.75%, up by 1.5% on a year-on-year basis. Bamboo and cane furniture manufacturing and plastic furniture manufacturing had a relatively low debt.

Figure 4 29 Scale of furniture manufacturing industry

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


Time

Number of enterprises

Employed

persons


Year-on-

year increase



Total assets value

Year-on-year increase

Debt

Year-on-

year increase



2007-02

3478

7.52

8.8

1285

19.07

730

21.53

2007-05

3632

7.99

7.79

1383

22.07

797

25.6

2007-08

3736

8.38

7.81

1493

22.95

850

24.32

2007-11

3865

8.57

6.98

1601

22.64

924

24.26

2008-02

4075

8.97

8.37

1481

12.1

851

14.27

2008-05

4226

9.16

4.56

1590

11.3

912

10.71

2008-08

4323

9.17

2.78

1652

7.58

963

7.16

2008-11

4432

9.21

0.61

1730

6.06

998

3.13

Of which: wood furniture manufacturing

2763

5.53

1.63

990

13.97

551

9.78

Bamboo and cane furniture manufacturing

79

0.14

6.56

18

17.99

11

28.9

Medal furniture manufacturing

959

2.13

-1.38

410

8.65

247

1.5

Plastic furniture manufacturing

70

0.11

-4.61

19

14.8

11

7.26

Other furniture manufacturing

561

1.31

-0.48

293

-17.08

178

-12.61

Source: China National Light Industry Council
      1. Production and Sales


The total output value of furniture manufacturing industry reached 38.014 billion yuan in February 2008, up by 20.6% on a year-on-year basis. The cumulative output value was 262.833 billion yuan in November, a year-on-year increase of 21.2%. The sales value of furniture manufacturing industry stood at 36.702 billion yuan, a year-on-year increase of 20.26%. The cumulative sales value was 253.537 billion yuan in November, a year-on-year increase of 21.46%. The sales-output ratio of furniture manufacturing industry was 96.55% in February, declining slightly to 96.46% in November. The industry made 11.65 billion yuan of manufactured products in February, up by 30.13% on a year-on-year basis, and increased to 15.923 billion yuan in November, up by 27.26% on a year-on-year basis.

The output value of wood furniture manufacturing industry stood at 144.328 billion yuan in November 2008, accounting for 54.91%, and up by 24.38% on a year-on-year basis. The output value of medal furniture manufacturing reached 69.066 billion yuan, accounting for 26.28%, and up by 16.96% on a year-on-year basis. The output value of bamboo and cane furniture manufacturing and plastic furniture manufacturing was 2.614 billion yuan and 2.992 billion yuan. The sales-output ratio of other furniture manufacturing was 97.43%, the highest in furniture manufacturing industry. The sales-output ratio of wood furniture manufacturing was 96.74%. Wood furniture manufacturing enterprises produced a relatively large value of 9.973 billion yuan in November, accounting for 62.63%, up by 31.74% on a year-on-year basis. Manufactured products value of plastic furniture manufacturing was small, only reaching 200 million yuan, up by 61.43% on a year-on-year basis.

Figure 4 30 Production and sales of furniture 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

308.29

26.72

297.93

29.01

96.64

82.96

21.25

2007-05

881.92

26.09

850.59

27.38

96.45

102.82

29.68

2007-08

1501.82

27.43

1442.52

27.37

96.05

105.30

23.03

2007-11

2146.91

27.54

2068.43

27.77

96.34

123.29

21.93

2008-02

380.14

20.60

367.02

20.26

96.55

116.50

30.13

2008-05

1089.59

21.78

1051.19

21.10

96.48

127.22

26.52

2008-08

1853.51

21.63

1792.62

22.28

96.71

143.36

31.03

2008-11

2628.33

21.20

2535.37

21.46

96.46

159.23

27.26

Of which: wood furniture manufacturing

1443.27

24.38

1396.15

25.29

96.74

99.73

31.74

Bamboo and cane furniture manufacturing

26.14

36.39

24.29

37.70

92.93

3.93

73.51

Medal furniture manufacturing

690.66

16.96

660.37

16.28

95.61

30.57

16.02

Plastic furniture manufacturing

29.92

22.29

27.48

12.00

91.84

2.00

61.43

Other furniture manufacturing

438.34

17.18

427.07

17.64

97.43

23.00

17.57

Source: China National Light Industry Council
      1. Costs and expenses


The sales costs of Furniture manufacturing industry in February 2008 was 31.176 billion yuan, up by 18.74% on a year-on-year basis. The cumulative sales costs reached 217.532 billion yuan in November, up by 21.53% on a year-on-year basis. The sales expense in February approached 1.271 billion yuan, up by 17.31% on a year-on-year basis. The cumulative sales expense in November was 10.986 billion yuan, up by 23.77% on a year-on-year basis. In February 2008, the management expenses and financial costs of furniture manufacturing industry were 1.674 billion yuan and 380 million yuan respectively, up by 22.71% and 30.48% on a year-on-year basis. The cumulative management expenses and financial costs in November were 10.573 billion yuan and 2.207billion yuan respectively, up by 17.23% and 11.82% on a year-on-year basis.

The sales costs of wood furniture manufacturing in November 2008 reached 3119.432 billion yuan, accounting for 54.9% and up by 25.31% on a year-on-year basis. The sales costs of medal furniture manufacturing was 56.832 billion yuan, accounting for 26.13% and up by 16%. The sales costs of bamboo and cane furniture manufacturing and plastic furniture manufacturing were 2.084 billion yuan and 2.39 billion yuan. The sales expenses of wood furniture manufacturing were 6.369 billion yuan, accounting for 57.97%, up by 27.45% on a year-on-year basis. The sales expenses of medal furniture manufacturing were 2.405 billion yuan, up by 23.67% on a year-on-year basis. The sales expenses of bamboo and cane furniture manufacturing and plastic furniture manufacturing were 840 million yuan and 870 million yuan. The management expenses and financial costs of wood furniture manufacturing were relatively large, reaching 6.098 billion yuan and 563 million yuan respectively in November, up by 57.68% and 53.56% on a year-on-year basis. The management expenses and financial costs of medal furniture manufacturing were 2.601 billion yuan and 1.339 billion yuan respectively, up by 16.94% and 13.14% on a year-on-year basis.

Figure 4 31 Costs and expenses of furniture 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

255.44

30.20

10.60

22.43

13.34

30.47

2.85

27.69

2007-05

727.68

27.56

29.95

20.41

36.09

26.80

8.00

43.04

2007-08

1236.37

27.60

50.51

20.90

61.66

22.65

13.83

40.14

2007-11

1764.20

27.19

72.27

20.74

88.21

22.65

16.29

13.38

2008-02

311.76

18.74

12.71

17.31

16.74

22.71

3.80

30.48

2008-05

909.02

22.04

43.78

21.09

44.03

17.65

8.63

7.06

2008-08

1542.62

22.36

76.98

11.25

74.74

18.41

14.94

8.32

2008-11

2175.32

21.53

109.86

23.77

105.73

17.23

22.07

11.82

Of which: wood furniture manufacturing

1194.32

25.31

63.69

27.45

60.98

15.49

11.82

11.48

Bamboo and cane furniture manufacturing

20.84

37.11

0.84

37.50

1.10

40.18

0.32

47.35

Medal furniture manufacturing

568.32

16.00

24.05

23.67

26.01

16.94

5.63

13.14

Plastic furniture manufacturing

23.90

12.08

0.87

20.95

1.19

14.20

0.30

27.36

Other furniture manufacturing

367.94

18.53

20.41

13.31

16.45

23.52

4.01

8.00

Source: China National Light Industry Council
      1. Profits


In February 2008, the cumulative profits of furniture manufacturing industry reached 1.178 billion yuan, up by 0.97% on a year-on-year basis. In November, the cumulative profits were 9.244 billion yuan, up by 14.16% on a year-on-year basis. In this year, the profit growth of beverage manufacturing industry kept a steady growth. In February 2008, 934 enterprises or 22.92% of all the companies suffered losses. In November, the cumulative number of enterprises in the red was 929 or 20.96% of all the companies. Both figures were declining. In February, the total loss reached 398 million yuan, up by 68.74% on a year-on-year basis. In November, the cumulative loss stood at 1.649 billion yuan, up by 76.62% on a year-on-year basis.

In November 2008, wood furniture manufacturing realized the most profit of 5.074 billion yuan, accounting for 54.89% of furniture manufacturing industry, up by 22.54% on a year-on-year basis. Medal furniture manufacturing realized a profit of 2.717 billion yuan, accounting for 29.39%, up by 5.52% on a year-on-year basis. The profits of bamboo and cane furniture manufacturing and plastic furniture manufacturing were 70 million yuan and 69 million yuan, up by 64.89% and down by 5.87% on a year-on-year basis respectively. Wood furniture manufacturing saw relatively more loss-suffering enterprises of 565 with a scale proportion of 60.82%, up by 20.45% on a year-on-year basis. Medal furniture manufacturing had 204 loss-suffering enterprises with a scale proportion of 21.96%, up by 21.27% on a year-on-year basis. The numbers of loss-suffering enterprises of bamboo and cane furniture manufacturing and plastic furniture manufacturing were 19 and 14 respectively. Wood furniture manufacturing enterprises suffered a relatively large amount of loss of 1.086 billion yuan, accounting for 65.86%, up by 69.29% on a year-on-year basis. Medal furniture manufacturing enterprises lost 282 million yuan, accounting for 17.1%, up by 90.77% on a year-on-year basis. The loss of bamboo and cane furniture manufacturing and plastic furniture manufacturing were 15 million yuan and 13 million yuan, up by 73.95% and 442.67% on a year-on-year basis. Furniture manufacturing enterprises encountered a rapid growth in loss.

Figure 4 32 Profits of furniture manufacturing industry

Unit: 100 million, %



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

11.37

13.68

743

21.36

2.26

19.69

2007-05

33.41

24.50

751

20.68

4.87

12.56

2007-08

51.79

14.14

726

19.43

7.98

23.64

2007-11

79.98

17.90

686

17.75

9.78

27

2008-02

11.78

0.97

934

22.92

3.98

68.74

2008-05

36.46

8.00

958

22.67

9.19

78.1

2008-08

60.83

13.44

951

22.00

12.80

63.72

2008-11

92.44

14.16

929

20.96

16.49

76.62

Of which: wood furniture manufacturing

50.74

22.54

565

20.45

10.86

69.29

Bamboo and cane furniture manufacturing

0.70

64.89

19

24.05

0.15

73.95

Medal furniture manufacturing

27.17

5.52

204

21.27

2.82

90.77

Plastic furniture manufacturing

0.69

-5.87

14

20.00

0.13

442.67

Other furniture manufacturing

13.14

3.76

127

22.64

2.52

89.56

Source: China National Light Industry Council
      1. Operation performance


In February 2008, the product sales revenue of furniture manufacturing industry grew at 20.26%, down by 8.75 percentage points on a year-on-year basis. In November, the product sales revenue grew at 21.46%, down by 6.31 percentage points on a year-on-year basis. The sales revenue of this industry was dropping down. In February 2008, the value-added ratio of capital maintenance was 109.3%, up by 6.68 percentage points on a year-on-year basis. In November, the ratio became 110.35%, down by 10.13 percentage points on a year-on-year basis. The value-added ratio of capital maintenance was declining. In February 2008, the asset-liability ratio of furniture manufacturing industry was 57.44%, up by 0.61 percentage point on a year-on-year basis. In November, the asset-liability ratio was 57.71%, down by 0.04 percentage point on a year-on-year basis. In February 2008, the net amount growth rate of accounts receivable was 5.42%, down by 11.02 percentage points on a year-on-year basis. In November, the rate was 2.53%, down by 11.63 percentage points on a year-on-year basis.

Figure 4 33 Operation performance of furniture 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

29.01

4.32

115.98

-4.88

56.83

0.49

16.44

0.03

2007-05

27.38

-0.75

117.58

-7.83

57.59

1.41

12.52

-9.1

2007-08

27.37

-2.31

121.17

-7.26

56.94

0.87

19.55

4.22

2007-11

27.77

-0.18

120.48

-5.65

57.75

0.65

14.16

-6.67

2008-02

20.26

-8.75

109.3

-6.68

57.44

0.61

5.42

-11.02

2008-05

21.10

-6.28

112.12

-5.46

57.34

-0.25

4.92

-7.6

2008-08

22.28

-5.09

108.16

-13.01

58.25

1.31

3.17

-16.38

2008-11

21.46

-6.31

110.35

-10.13

57.71

-0.04

2.53

-11.63

Source: China National Light Industry Council
      1. Investment in fixed assets


The cumulative investment in fixed assets of furniture manufacturing industry in 2008 approached 50.8 billion yuan, up by 30.52% on a year-on-year basis. In February, the cumulative investment in fixed assets was 2.89 billion yuan, up by 70% on a year-on-year basis, the highest speed throughout the year. In December, the cumulative investment in fixed assets grew at 30.52% on a year-on-year basis which was relatively low. The investment in fixed assets of this industry in 2008 kept a rapid growth over 30% on the whole.

Figure 4 34 Investment in fixed assets of furniture manufacturing industry

Unit: 100 million RMB, %

Time

Cumulative aggregate

investment amount



Amount over the same period last year

Year-on-year increase

2008-02

28.9

17.0

70.00

2008-03

70.9

43.1

64.50

2008-04

108.4

72.7

49.11

2008-05

154.5

107.8

43.32

2008-06

215.9

161.5

33.68

2008-07

270.6

203.2

33.17

2008-08

310.1

236.4

31.18

2008-09

368.2

268.3

37.23

2008-10

409.7

310.5

31.95

2008-11

465.9

346.9

34.30

2008-12

508.0

389.2

30.52

Source: China's National Bureau of Statistics

      1. Production and sales by region


In 2008, Guangdong boasted 69.466 billion yuan output value of furniture manufacturing industry, accounting for 26.43% of the industry's total output, the highest in the country, up by 15.97% on a year-on-year basis. The total output value of Zhejiang was 37.258 billion yuan, accounting for 14.18%, up by 11.79% on a year-on-year basis. The total output value of this industry was relatively large in Shandong, Liaoning, Shanghai and Jiangsu. The total output value and sales value were small in Qinghai, Yunnan, Guizhou and Shaanxi. In this year, Guizhou ranked the first in China in sales-output ratio of 145.35%, followed by Xinjiang, Qinghai, Beijing and Yunnan. The ratio of Shaanxi was 45.15% as the lowest in China. Shanxi, Hainan, Guangxi and Inner Mongolia had a relatively low sales-output ratio.

Figure 4 35 Sales-output distribution of furniture 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

2628.33

21.20

100

2535.37

21.46

100

96.46

Beijing

41.32

11.62

1.57

44.09

12.97

1.74

106.71

Tianjin

29.69

2.02

1.13

29.57

1.36

1.17

99.61

Hebei

74.98

42.68

2.85

67.27

31.78

2.65

89.72

Shanxi

1.02

41.02

0.04

0.71

55.37

0.03

69.94

Inner Mongolia

8.85

34.32

0.34

7.48

30.79

0.29

84.53

Liaoning

178.45

21.69

6.79

172.69

22.64

6.81

96.77

Jilin

23.68

37.22

0.90

21.35

32.13

0.84

90.15

Heilongjiang

24.61

5.59

0.94

22.89

5.60

0.90

93.02

Shanghai

173.68

0.77

6.61

172.78

-1.41

6.81

99.48

Jiangsu

123.97

2.76

4.72

120.92

1.93

4.77

97.54

Zhejiang

372.58

11.79

14.18

364.77

11.88

14.39

97.90

Anhui

22.33

71.85

0.85

19.75

80.77

0.78

88.43

Fujian

137.89

28.44

5.25

129.62

25.77

5.11

94.00

Jiangxi

26.08

94.42

0.99

25.89

95.92

1.02

99.28

Shandong

344.19

34.98

13.10

335.89

40.31

13.25

97.59

Henan

127.57

54.98

4.85

123.55

57.03

4.87

96.85

Hubei

15.99

11.32

0.61

14.47

21.74

0.57

90.48

Hunan

59.60

55.90

2.27

59.52

60.03

2.35

99.86

Guangdong

694.66

15.97

26.43

659.57

15.66

26.01

94.95

Guangxi

6.22

85.34

0.24

4.87

71.56

0.19

78.36

Hainan

1.06

-42.00

0.04

0.78

-34.15

0.03

73.24

Chongqing

21.88

18.63

0.83

21.58

13.29

0.85

98.63

Sichuan

105.49

50.34

4.01

101.37

60.29

4.00

96.10

Guizhou

0.06

0.58

0.00

0.09

-0.55

0.00

145.35

Yunnan

0.62

21.54

0.02

0.72

49.69

0.03

115.70

Tibet

3.54

40.08

0.13

2.85

48.05

0.11

80.41

Shaanxi

0.92

27.80

0.04

0.42

-6.21

0.02

45.15

Qinghai

0.12

-70.75

0.00

0.15

-63.82

0.01

120.80

Ningxia

0.64

84.60

0.02

0.62

74.02

0.02

96.34

Xinjiang

6.63

-17.38

0.25

9.13

3.39

0.36

137.70

Source: China National Light Industry Council

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