Economic Report on the Rubber Products Sector in 2006   

By CPCIA  

According to the analysis on the data provided by the National Bureau of Statistics of China, there were 3 029 enterprises with considerable scale (referring to all state-owned enterprises and non state-owned enterprises but with a sale revenue of over RMB5.0 million in the previous year) in the rubber products manufacturing sector of China in 2006. These 3 029 companies have a total asset of RMB221.107 billion, an increase of 14.32% compared with RMB193.410 billion in 2005. The total sale revenue was RMB269.842 billion, an increase of 27.68% over RMB211.338 billion in 2005. The profit was RMB11.104 billion, an increase of 7.21% over 2005 (RMB10.357 billion).

Data on the top 100 companies in terms of operating performance

Main economic indexes but profit of the top 100 enterprises in the rubber products manufacturing sector in 2006 went up compared with that of the top 100 companies in the year 2005. The asset value of the top 100 enterprises was RMB118.966 billion, an increase of 11.84% over that of the top 1000 in 2005. Their sales revenue totaled RMB148.816 billion, an increase of 26.39% over 2005. As the whole sector has suffered cost pressure caused by the high price of natural rubber for several consecutive years, the profit of the top 100 enterprises was RMB5.075 billion only in 2006, a drop of 13.22% from 2005. Because the top 100 enterprises are listed on the basis of total revenue, most of them are large scale in the sector, mainly use natural rubber as feedstock.

    (1) Scale   

Among the top 100 enterprises, 36 large scale enterprises hold a dominant share. The 2006 sales revenue of those 36 companies was RMB111.061 billion, occupying 74.63% in the top 100 companies. They acquired a total profit of RMB3.009 billion, that was 59.29% of total acquired by the top 100 companies. The sales revenue of small and medium scale enterprises (other 64 companies) was accumulated to RMB37.755 billion, accounting for 25.37% and they acquired a total profit of RMB2.076 billion, accounting for 40.71%. As is seen from the enterprise scale, the level of production in the rubber products sector is highly concentrated. Large scale enterprises, owned strong financial budget and strong technical force, can achieve economic effect that facilitates the increase of productivity, the efficiency of production and operation, the implementation of technical innovation and the reduction of pollution.

    (2) Regional distribution

Among the top 100 companies, the first place of the total sales revenue was held by Shandong province there with many tire manufacturers. Its revenue reached RMB56.926 billion, accounting for 38.25% of the total of the top 100 companies. Jiangsu province held the second place, with a sale revenue of RMB17.058 billion, accounting for 11.46%. The sales revenue in Zhejiang, Guangdong, Shanghai and Fujian provinces held the 3rd to 6th places, with a sale revenue of RMB15.611 billion, RMB7.419 billion, RMB7.263 billion and RMB7.047 billion, accounting for 10.49%, 4.99%, 4.88% and 4.74% respectively. In the top 100 enterprises in the rubber product sector, the profit acquired by those companies headquartered in Shandong province was RMB2.598 billion, accounting for 51.20% of the total.

    (3) Ownership

Among the top 100 enterprises in the rubber products sector, foreign-funded enterprises held the largest proportion in the total sales revenue. Collective enterprises, and state-owned/state-controlled enterprises came next. The proportion held by private enterprises was the smallest. The sales revenue accumulated by foreign-funded enterprises was RMB57.259 billion, accounting for 38.48%. The sales revenue achieved by collective enterprises was RMB44.789 billion, accounting for 30.10%. The sales revenue reported by state-owned and state-controlled enterprises was RMB38.254 billion, accounting for 25.71%. The sales revenue gained by private enterprises was RMB8.514 billion, accounting for 5.71%.
   In terms of the growth of sales revenue in 2006, the private enterprises ranked the highest - 53.40% and collective enterprises came next with 25.94%. The growth gained by the foreign-funded enterprises was same as that of collective enterprises, being also 25.94%. The growth gained by state-owned and state-controlled enterprises was the lowest, being 22.76%. The sales revenue increased from RMB31.160 billion of the top 100 companies in 2005 to RMB38.254 billion in 2006, representing a drop of share held by state-owned and state-controlled enterprises among the top 100.
   In terms of profit, collective enterprises held the highest proportion and foreign-funded enterprises came next. Judging from the growth of profit, private enterprises had the highest growth and collective enterprises came next. The growth acquired by the state-owned and state-controlled enterprises and foreign-funded enterprises was negative. The profit acquired by state-owned and state-controlled enterprises dropped to RMB0.818 billion in 2006 from RMB1.078 billion acquired by the state-owned and state-controlled enterprises among the top 100 in 2005. The profit acquired by foreign-funded enterprises dropped from RMB2.409 billion in 2005 to RMB1.403 billion in 2006.

    (4) Operating performance  

The profit/revenue rate in the top 100 enterprises was 3.41% in 2006, slightly lower than 2005 (4.97%). The profit/asset rate was 4.27% in 2006, lower than 2005 (5.50%). Their per-capita profit generated also dropped from RMB26 600 in 2005 to RMB22 200 in 2006. Cost became the first key factor influencing the economic performance.