furniture and related product manufacturing

8/11/2019 Furniture and Related Product Manufacturing

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Furniture and Related P roduct M anufac turing

0%

5%

10%

15%

20%

25%

30%

Period

Return on equity [%]

Return on equity [%]

Return on assets [%]

P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3Value [%] 4.67% 4.66% 4.65% 5.43%

Y /Y inc reas e [% ] 0 .9 9 % -0 .0 1 % -0 .0 1 % 0 .7 8 %

P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7

Value [%] 6.45% 6.40% 7.31% 7.32%

Y /Y inc reas e [% ] 1 .0 2 % -0 .0 5 % 0 .9 1 % 0 .0 1 %

P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11

Value [%] 7.78% 9.05% 11.82% 12.20%

Y /Y inc reas e [% ] 0 .4 6 % 1 .2 8 % 2 .7 6 % 0.38%

0%

2%

4%

6%

8%

10%

12%

14%

Period



rise of return onassets in 2011comparing to thevalue in 2010

rise of return on netsales in 2011comparing to thevalue in 2010

Return on net sales [%]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [%] 4.73% 4.42% 4.08% 4.26%

Y /Y inc rease [%] 0.77% -0.31% -0 .3 4 % 0 .1 8 %

P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7Value [%] 4.47% 4.56% 4.82% 4.72%

Y /Y inc reas e [% ] 0 .2 1 % 0 .0 9 % 0 .2 6 % -0 .1 0 %

P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11

Value [%] 4.83% 5.62% 6.70% 7.11%

Y /Y inc reas e [% ] 0 .1 1 % 0 .7 9 % 1 .0 8 % 0.41%ISIEmergingMarketsPDF cn cpml from 218.1.16.190 on 2014 07 23 21:38:09 EDT. DownloadPDF.

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17/34-16-


0%

1%

2%

3%

4%

5%

6%

7%

8%

Period

Return on net sales [%]

Return on net sales [%]

Share of profit-generating companies [%]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [%] 81.98% 81.23% 82.97% 84.56%

Y /Y inc reas e [% ] 1 .5 3 % -0 .7 5 % 1 .7 3 % 1 .5 9 %

P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7

Value [%] 79.80% 83.28% 85.32% 85.33%

Y /Y inc reas e [% ] -4 .7 5 % 3 .4 8 % 2 .0 4 % 0 .0 1 %

P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11

Value [%] 81.77% 85.35% 89.57% 90.79%

Y /Y inc reas e [% ] -3 .5 6 % 3 .5 8 % 4 .2 2 % 1.22%

74%

76%

78%

80%

82%

84%

86%

88%

90%

92%

Period

Share of profit-generating companies [%]

Share of prof it-generating companies [%]

rise of share ofprofit-generatingcompanies in 2011comparing to thevalue in 2010

ISIEmergingMarketsPDF cn cpml from 218.1.16.190 on 2014 07 23 21:38:09 EDT. DownloadPDF.



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Liquidity RatiosCurrent ratio [%]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [%] n/a n/a n/a n/a

Y /Y inc reas e [% ] n/a n/a n/a n/a

P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7



P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11



0%

20%

40%

60%

80%

100%

120%

Period

Current ratio [%]

Current ratio [%]

Quick ratio [%]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3



P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7



P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11



0%

20%

40%

60%

80%

100%

120%

Period

Quick ratio [%]

Quick ratio [%]

No data available

No data available




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Receivables to liabilities ratio [%]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3



P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7



P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11Value [%] n/a n/a n/a n/a


0%

20%

40%

60%

80%

100%

120%

Period

Receivables to liabilities ratio [%]

Receivables to liabilities ratio [%]

Financial Leverage RatiosDebt to Equity ra tio [%]Long-term liabilities [% ] 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3



Long-term liabilities [% ] 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7



Long-term liabilities [% ] 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11

Value [%] n/a n/a n/a n/aY /Y inc reas e [% ] n/a n/a n/a n/a

Equity to total assets ratio [%]Long-term liabilities [% ] 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [%] 43.71% 44.42% 44.73% 43.92%

Y /Y inc reas e [% ] 2 .5 9 % 0 .7 1 % 0 .3 1 % -0 .8 1 %


Value [%] 41.48% 42.61% 44.01% 44.24%

Y /Y inc reas e [% ] -2 .4 4 % 1 .1 3 % 1 .4 0 % 0 .2 3 %

Long-term liabilities [% ] 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11Value [%] 44.61% 46.39% 46.26% 47.27%

Y /Y inc reas e [% ] 0 .3 7 % 1 .7 8 % -0 .1 4 % 1.01%

No data available

No data available

rise of equity to totalassets ratio in 2011comparing to thevalue in 2010




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Long-term liabilities to total liabilities ratio [%]Long-term liabilities [% ] 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3









Debt ratio [%]Long-term liabilities [% ] 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [%] 56.28% 55.58% 55.27% 56.08%

Y /Y inc reas e [% ] -2 .5 9 % -0 .7 0 % -0 .3 1 % 0 .8 1 %


Value [%] 58.52% 57.39% 55.99% 55.76%

Y /Y inc reas e [% ] 2 .4 4 % -1 .1 3 % -1 .4 0 % -0 .2 3 %


Value [%] 55.39% 53.22% 53.44% 52.31%

Y /Y inc reas e [% ] -0 .3 7 % -2 .1 7 % 0 .2 2 % -1.13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011

Period

Capital structure [%]

Equity [%] Short-term liabilities [%] Long-term liabilities [%]

No data available

fall of debt ratio in2011 comparing tothe value in 2010

liabilities dominatein the capitalstructure

Capital structure [%]

E quity [% ] 4 6 .3 9 % 46 .2 6 % 47.27%

Short-term liabilities [% ] n/a n/a n/a

Long-term liabilities [% ] n/a n/a n/a

P eriod 2 0 0 9 2 0 1 0 2 0 11




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Operating profit coverage [%]Long-term liabilities [% ] 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [%] 1131.47% 1028.52% 958.83% 949.11%

Y /Y inc rease [%] -98.33% -102.95% -69.69% -9.72%


Value [%] 898.14% 566.13% 602.33% 445.18%

Y /Y inc rease [%] -50.97% -332.01% 36.20% -157.15%

Long-term liabilities [% ] 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11Value [%] 1043.40% 301.87% 302.80% 600.73%

Y /Y inc rease [%] 598.21% -741.52% 0.93% 297.93%

0%

200%

400%

600%

800%

1000%

1200%

Period

Operating profit coverage [%]

Operating profit coverage [%]

Financial Cycles

Days of coverage for cash & equivalent [days]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [days] n/a n/a n/a n/a

Y /Y inc reas e [days ] n/a n/a n/a n/a

P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7



P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11



0

0

0

1

1

1

1

[ d a y s

]

Period

Days of coverage for cash & equivalent [days]

Days of coverage for cash & equivalent [days]

No data available

rise of operatingprofit coverage in2011 comparing tothe value in 2010




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Days of cov erage for current liabilities [days]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3



P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7



P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11Value [days] n/a n/a n/a n/a


0

0

0

1

1

1

1

[ d a y

s ]

Period

Days of cove rage for current liabilities [days]

Days of coverage for current liabilities [days]

Days of coverage for receivables [days]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [days] 44 41 39 38

Y /Y increase [days] -2 -3 -3 -1

P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7

Value [days] 37 42 39 32

Y /Y increase [days] -1 5 -3 -7

P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11

Value [days] 30 28 26 27

Y /Y increase [days] -2 -2 -2 1

0

5

10

15

20

25

30

35

40

45

50

[ d a y s

]

Period

Days of coverage for receivables [days]

Days of coverage for receivables [days]

No data available

rise of days ofcoveragereceivables in 2011comparing to thevalue in 2010




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Days of coverage for inventory [days]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [days] 81 76 70 67


P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7

Value [days] 67 59 56 52

Y /Y increase [days] 0 -8 -2 -4

P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11Value [days] 49 42 39 36


0

10

20

30

40

50

60

70

80

90

[ d a y s ]

Period

Days of coverage for inventory [days]

Days of coverage for inventory [days]

Production Factors

Employment [thou person]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [thou person] 270 298 340 434

Y /Y inc reas e [thou pers on] 1 6 2 8 4 1 9 4

P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7

Value [thou person] 649 713 838 913

Y /Y inc reas e [thou pers on] 2 1 6 6 3 1 2 5 7 5P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11

Value [thou person] 1 044 986 1 117 1 064

Y /Y inc reas e [thou pers on] 1 3 1 -5 8 1 3 2 -5 3

Employment per company [person]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [person] 181 184 192 212

Y /Y inc reas e [pers on] 8 3 9 2 0

P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7

Value [person] 215 232 233 222

Y /Y inc reas e [pers on] 3 1 7 1 -1 0

P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11

Value [person] 194 177 188 250

Y /Y inc reas e [pers on] -2 8 -1 7 1 2 6 2

fall of days ofcoverage forinventory in 2011comparing to thevalue in 2010

fall of employmentin 2011 comparingto the value in 2010

rise of averageemployment percompany in 2011comparing to thevalue in 2010




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Labour productivity [thou RMB/person]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [thou RMB/person] 128.49 141.00 151.21 175.58

Y /Y dynamic s [%] 13.32% 9.74% 7.24% 16.11%

P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7

Value [thou RMB/person] 202.23 199.40 230.34 263.72

Y /Y dynamic s [%] 15.18% -1.40% 15.52% 14.49%

P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11Value [thou RMB/person] 295.76 322.60 399.53 439.58

Y /Y dynamic s [%] 12.15% 9.07% 23.85% 10.02%

0

50

100

150

200

250

300

350

400

450

500

Period

Labour productivity [thou RMB/person]

Labour productivity [thou RMB/person]

Fixed assets per employee [mn RMB/person]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [mn RMB/person] 44.49 43.28 43.60 43.13

Y /Y dynamic s [% ] 6 .4 9 % -2 .7 2 % 0 .7 5 % -1 .0 8 %

P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7


Y /Y dynamic s [% ] -8 .6 6 % 8 .7 6 % 1 2 .2 4 % 1 4 .5 5 %

P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11


Y /Y dynamic s [% ] 0 .0 9 % 1 2 .8 1 % 6 .7 3 % 19.00%

0

10

20

30

40

50

60

70

80

90

Period

Fixed asse ts per employee [mn RMB/person]

Fixed assets per employee [mn RMB/person]

fall of Y/Y dynamicsof labourproductivity in 2011comparing to thevalue in 2010

rise of Y/Y dynamicsof fixed assets peremployee in 2011comparing to thevalue in 2010




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Fixed assets productivity [%]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [%] 297.61% 321.53% 348.00% 405.12%

Y /Y inc rease [%] 17.81% 23.92% 26.47% 57.12%

P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7

Value [%] 494.52% 483.93% 504.21% 509.65%

Y /Y inc rease [%] 89.41% -10.59% 20.27% 5.45%

P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11Value [%] 536.58% 550.77% 620.09% 605.92%

Y /Y inc rease [%] 26.93% 14.19% 69.32% -14.18%

0%

100%

200%

300%

400%

500%

600%

700%

Period

Fixed assets productivity [%]

Fixed assets productivity [%]

Material, energy, other services intensity of production [%]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [%] 71.88% 70.67% 71.11% 73.06%

Y /Y increase [%] -0.91% -1.20% 0.44% 1.95%

P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7

Value [%] 74.08% 71.66% 71.94% 71.99%

Y /Y increase [%] 1.02% -2.42% 0 .28% 0.04%

P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11

Value [%] 71.99% 71.99% 71.99% 71.99%

Y /Y increase [%] 0.00% 0.00% 0.00% 0.00%

Investment Outlays

Total investment outlays [mn RMB]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [mn RMB] 1 905.00 1 723.00 2 839.00 5 452.00

Y /Y dynamic s [%] 62.13% -9.55% 64.77% 92.04%

P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7

Value [mn RMB] 8 713.00 6 429.00 7 739.00 12 093.00

Y /Y dynamic s [%] 59.81% -26.21% 2 0.3 8 % 5 6 .2 6 %P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11

Value [mn RMB] 10 845.85 16 662.00 25 473.00 34 606.00

Y /Y dynamic s [%] -10.31% 53.63% 52.88% 35.85%

fall of fixed assetsproductivity in 2011comparing to thevalue in 2010

stabilisation ofmaterial, energy,other servicesintensity ofproduction in 2011comparing to thevalue in 2010

fall of Y/Y dynamicsof total investmentoutlays in 2011comparing to thevalue in 2010




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Investment outlays as share in net revenue [%]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [%] 5.65% 4.30% 5.89% 8.03%

Y /Y inc rease [%] 1.55% -1.35% 1.59% 2.14%

P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7

Value [%] 7.95% 4.73% 4.33% 5.24%

Y /Y inc rease [%] -0.07% -3.22% -0.40% 0.90%

P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11

Value [%] 3.75% 5.09% 6.06% 7.22%

Y /Y inc rease [%] -1.49% 1.34% 0.97% 1.15%

Investment outlays per company [mn RMB]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [mn RMB] 1.27 1.06 1.61 2.66

Y /Y dynamic s [%] 59.42% -16.62% 51.53% 65.85%

P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7

Value [mn RMB] 2.88 2.09 2.15 2.94

Y /Y dynamic s [%] 8.09% -27.39% 2.70% 36.98%

P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11Value [mn RMB] 2.01 2.99 4.29 8.13

Y /Y dynamic s [%] -31.56% 48.39% 43.66% 89.46%

Investment outlays index [%]P eriod 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Value [%] 11.58% 6.82% 12.84% 20.86%

Y /Y increase [%] 4.06% -4.76% 6.02% 8.02%

P eriod 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7

Value [%] 26.85% 14.17% 12.51% 17.10%

Y /Y increase [%] 5.99% -12.68% -1.66% 4.59%

P eriod 2 0 0 8 2 0 0 9 2 0 1 0 2 0 11

Value [%] 4.57% 19.20% 23.29% 34.95%

Y /Y increase [%] -12.52% 14.63% 4.09% 11.66%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

I n v e s t m e n

t o u t

l a y s

i n d e x [ %

]

N e t p r o f

i t [ m n

R M B ]

Period

Investment outlays index [%]Net profit [mn RMB]

Net p rofi t [mn RMB] Investmen t outl ays index [%]

rise of investmentoutlays as share innet revenue in 2011comparing to thevalue in 2010

rise of Y/Y dynamicsof investmentoutlays percompany in 2011comparing to thevalue in 2010

rise of investmentoutlays index in2011 comparing tothe value in 2010




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- 2 8

-

Furnitureand Related Product Manufacturing

DuPont Pyram

id

Equity

2011

131

2010

110

2009

93

2008 80

Leverage

2011

2.137

Assets

2011

280

2010

2.159

2010

238

2009

2.196

2009

203

ROE

2011

26.1%

2008

2.250

TAT

2011

1.715

2008

180

2010

25.5%

2010

1 . 7

6 3

2009

19.9%

2009

1 . 6 1

0

2008

17.5%

ROA

2011

12.2%

2008

1 . 6

0 9

Net

revenue

2011

479

2010

11.8%

2010

4 2 0

2009

9.1%

2009

3 2 7

2008

7.8%

ROS

2011

7.1%

2008

2 8 9

2010

6 . 7

%

2009

5 . 6

%

2008

4 . 8

% EBT

2011 34

2010

28

2009

18

2008

14

Return on equity

ROE =ROA* leverage

Assets turnover

TAT =Net revenue/Assets

Return on assets

ROA=ROS* TAT

Net revenue(*)

[bn RMB]

(*)Earning beforetaxes or net revenuefrom agiven year

(**)Averageofassets or equityfrom thelast twoyears

Equity(**)

[bn RMB]

leverage=Assets /Equity

Assets (**)

[bn RMB]

Return on net sales

ROS=EBT /Net revenue

Earning beforetaxes (*)

[bn RMB]

*

*

/

/

/




30/34-29-


List of Source Financials

Financial indicator \ Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Gross Sales DB DB DB DB DB DB DB DB DB DB DB DB

Value Added Tax e e e e e DB DB e e e e DB

Sales Tax e e e e e DB DB e e e e DB

Indirect Taxes e e e e e DB DB e e e e DB

Net Sales e e e e e DB DB e e e e DB

Value Added of Industry DB DB DB DB e DB DB DB e e e e

Material, Energy and OtherServices Cost e e e e e DB DB e e e e e

Depretiation e e e e e e e e e e e e

Distribution Cost e e e e e DB DB e e e e DB

Administration Expenses e e e e e DB DB e e e e DB

Cost of Sales e e e e e DB DB e e e e DB

Total Costs e e e e e e e e e e e e

Earning Before Taxes DB DB DB DB DB DB DB DB DB DB DB DB

Earning Before Interest and Taxes e e e e e e e e e e e e

Earning Before Interest, Taxesadn Depretiation e e e e e DB DB e e e e DB

Inventories DB e DB DB DB DB DB DB DB DB DB DB

Receivables e e e e e DB DB e DB e e DB

Current Assets DB DB DB DB DB DB DB DB DB DB DB e

Net Fixed Assets DB DB DB DB DB DB DB DB DB DB DB e

Total Assets DB DB DB DB DB DB DB DB DB DB DB DB

Short-term Liabilities n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

Long-term Liabilities n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

Liabilities DB DB DB DB DB DB DB DB DB DB DB DB

Equity DB DB DB DB DB DB DB DB DB DB DB DB

Investment Outlays e e e e e DB DB DB e DB DB DB

Employment DB DB DB DB DB DB DB DB DB DB DB DB

No. of C ompanies loss-generating DB DB DB DB DB DB DB DB DB DB DB DB

No. of Companies profit-generating DB DB DB DB DB DB DB DB DB DB DB DB

No. of Companies DB DB DB DB DB DB DB DB DB DB DB DB

DB - data from the CEIC Databasee - estimated valuen/a - value unavailable

Title




31/34-30-


Key ConceptsDefinitions of Indices

Number of companies Number of reporting companies V

Net revenue [mn RMB] Revenue generated by core activity V

Earning before taxes [mn RMB] Earning before taxes V

Net revenue per company [mn RMB]Revenue generated by core activity

-----------------------------------------Number of companies

V---V

Total costs [mn RMB] Total cost associated with core activity V

Tot al cost per company [mn RMB]Total costs

--------------------------Number of companies

V---V

Value added to net sales ratio [%]Value added

---------------Net sales

V---V

Return on Sales [%]Earning before taxes

------------------------Net revenue

V-----

V

Return on Equity [%]Earning before taxes

------------------------Equity

V-----AV2

Return on Assets [%]Earning before taxes

------------------------Total assets

V-----AV2

Share of profit-generating companies [%]Number of profit-generating companies

---------------------------------------------Number of companies

V-----

V

Current ratio [%]Current assets

------------------------Short-term liabilities

V---V

Quick ratio [%]Current assets - Inventory

-------------------------------Short-term liabilities

V---V

Receivables to liabilities ratio [%]Current receivables

------------------------Short-term liabilities

V---V

Days of coverage for Cash & equivalent [days](Current receivables + Inventories - Short-term liabilities) * 360

---------------------------------------------------------------------------Net revenue

V-----

V

Days of c overage for c urrent liabilities [days]Short-term liabilities * 3 60

-------------------------------Net revenue

V-----

V

Days of coverage receivables [days]Current receivables * 360------------------------------

Net revenue

V-----

V

Days of coverage for inventory [days]Inventories * 3 60---------------------

Net revenue

V-----

V

Debt to Equity ratio [%]Long-term liabilities-----------------------

Equity

V---V

Equity to total assets ratio [%]Equity

--------------Total assets

V---V

Long-term liabilities to total liabilities ratio [%]Long-term liabilities-----------------------

Total assets

V---V

Debt ratio [%]Total liabilities-----------------

Total assets

V---V

Operating profit c overage [%]Total liabilities

-------------------------------------------------------------------Earning before interest, taxes, depretiation & amortisation

V-----

V

V - Value for a given yearAV2 - Average of values over the two last years

Definition of index

Profitabilityratios

Liquidityratios

General indices

Financial cycles

Financial leverage ratios




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Employment [person] Number of employees V

Average employment per company [person]Number of employees

--------------------------Number of companies

V---V

Labour productivity [mn RMB/person]Net revenue

---------------Employment

V-----AV2

Fixed assets per employee [mn RMB/person]Net fixed assets------------------

Employment

V---V

Material, energy, other services intensity of production [%]Material, energy, other services cost

------------------------------------------Net revenue

V---V

Fixed assets productivity [%]Net revenue

------------------Net fixed assets

V-----AV2

Total investment outlays [mn RMB] Investment outlays V

Investment outlays as share in net revenue [%]Investment outlays----------------------

Net revenue

V---V

Investment outlays per company [mn RMB]Investment outlays

--------------------------Numebr of companies

V---V

Investment outlays t o amortisation & depretiat ion ratio [%]Investment outlays----------------------

Depreciation

V---V

Investment outlays index [%]Investment outlays - Depretiation

---------------------------------------Net fixed assets

V---V

Share of indirect taxes in total costs [%]Indirect taxes----------------

Total costs

V---V

Share of cost of sales in total costs [%]Cost of sales

---------------Total costs

V---V

Share of distribution cost in total cost [%]Distribution cost

-------------------Total costs

V---V

Share of administration expenses in total c osts [%]

Administration expenses

----------------------------Total costs

V

---V

Share of depretiation in total costs [%]Depretiation

---------------Total costs

V---V

Definition of index

Productionfactors

Investmentoutlays

Costs

V - Value for a given yearAV2 - Average of values over the two last years




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Definitions of Selected Concepts

EconTrends for China are based to large extent on t he structure of the North American IndustryClassification System (NAICS), where possible. Analyses made for respective industry sections,divisions groups and classes are more less consistent with this classification. However t he usedsystem of industry classificat ion is not fully c ompatible with the NAICS due to Chinese stat istics -specific factors.

Seasonal adjustment is an econometric procedure consisting in elimination of seasonal deviations thatimpair the effec tiveness of econometric modeling. T his stat istical procedure is based on appropriate,specialized econometric tools (the Tramo/Seats method). The software applied performs seasonaladjustment according to the Chinese calendar (e.g. public and religious holidays, etc.), to set off theimpact of differences in the number of working days in particular quarters. Forecasts of financialparameters in the given sectors are derived based on forecasts of deseasonalised trend. The accuracyof the seasonal adjustment procedure is additionally supported by verificat ion of key stat istical tests,inclusion of incidental factors and drastic leaps in production volume, as well as testing the model.

cative one, where seasonal deviations are c alculated as the percentage deviations from the long termtrend (in that case a deviation of 103 means a deviation of 3% from the value of the trend, and e.g.98 a deviation of -2%).

Seasonal deviations are obtained by using the Tramo/Seats econometric procedure. A seasonaldeviation shows the average deviation of the value of revenue at a given quarter from the long termtrend. Seasonal variation informs us about an additional changeability associated with a particularseason of the year, which is a result of temporarily increased or decreased revenue. Skilfulassessment of seasonal deviation may be one of the advantages of a firm, which will be able to assessthe level of revenue in a given quarter, that in turn will result in better production planning. However,a bad assessment of seasonal changes may be a source of additional risk. The graph of seasonaldeviation for the period shows deviation from the long term trend in a given quarter (quarterly valuesare arranged chronologically in years i.e. January '98, '99 etc.), which allows for precise forecasting of deviation in the analyzed quarter. In the above materials we can see two methods of presentingseasonality. The first is the additive one, when the revenues are decomposed as a sum of long termtrend and nominal value seasonal deviations. The second way of presenting seasonality is the multipli-

Forecasting models used in EconTrends have a hierarchical structure. The first layer consists of models that transmit behavior of macroeconomic variables like nominal GDP growth, increases in pricesto the behaviors of financial parameters like net sales and gross margin in all analyzed ec onomicsections. Gross margin should be understood as the share of gross profit (net sales - cost of sales) innet sales. T he next layer of models t ranslates the behavior of the above parameters in economicsections into the divisions within them. The last layer links the groups with the classes that arecontained in them. The econometric models that are used in respective layers have a linear structure

and belong to a well known group of ADL (Autoregressive Distributed Lags) models. The long termrelation between GDP growth and growth of sales in a given sector (called implied long term growth) isalso developed on the ground of these models.

Risk-profitability maps show the location of sectors depending on the value of profitability and riskthey ac hieve. Sectors singled out by being encircled by a red ring are most useful efficient forinvestors, due to the relatively highest return at the lowest variability of profit (relatively high value of the Sharps index). On the basis of t he coordinate values of efficient sectors, the preferences of investors on the market are shown by a grey dotted line visible on the graphs this is a level line of the linear function of utility for investors (Investors Utility Function). The level line shows preferencesof the majority of investors with regard t o achieved profitability at a given risk. Sec tors, which are

placed above the linear funct ion of usefulness are preferred by investors due to the possibility of achieving a high profitability, at a particular level of risk. Sectors lying below the level line are not asattractive for investors, due to the relatively high variability in profit as against their profitability.

Seasonal adjustment

Seasonal deviations

Forecasting models

Risk-profitability maps




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The long-term trend indicates so-called potential level of production for a given sector i.e. a level atwhich there is no significant tension for a rise/fall in price dynamics and employment within the sector.

DuPont Pyramid is a very useful tool t o decompose Return on Equity (ROE) into various ratios like:Return on Sales (ROS), Total Assets Turnover (TAT) and Financial Leverage. It enables easy drawingof conclusions about the efficiency of an analyzed company in various areas of its activity.

The forces map shows decompositions of the profitability index into particular driving forces. The ideaof the strengths map is to show the effect of particular variables on the dynamics of profit both incurrent and forecasted situation.

In the section financial ratios analysis presented numbers are calculated either on basis of original

financials or they are derived through estimation some of them. Financial ratios in which at least onecomponent is estimated are written in italic.

Y/Y Increase, Y/Y Dynamics. Increases are c alculated as absolute differences with respect to t hepreceding year (Y/Y). Dynamics are calculated as relative [%] differences with respect to the

preceding year (Y/Y ).

Forecasts presented in EconTrends for China relate to a period of two years ahead in relation to theend of the time period for which statistical data are available.

The business cyc le shows fluctuations of business ac tivity for a given sector around a long-term trendrepresenting the potential level of product ion for the sector. Positive values of the business cyc leindicat e a possibility of price dynamics increase pressure, increase of employment or rebound ininvestments, since the capacity utilization ratio remains high. Negative values of the business cycleindicate a possibility of price dynamics decrease pressure, decrease of employment or deterioration ininvestment activity, since the capacity utilization ratio is relatively weak.

The forces map

Y/Y Increase, Y/Y Dynamics

Forecasts

The business cycle

The long-term trend

DuPont Pyramid

furniture and related product manufacturing

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