Analysis of Scale Structure of China's Printing Industry

The scale of China's printing industry is the highest in the world. The market potential of this huge group of companies attracts the attention of countless domestic and foreign printing equipment manufacturers. A correct understanding of the scale of China's printing industry will help to grasp its market potential. The analysis point of this paper is to start with the division of the scale of the printing enterprise, and to subdivide the group of printing companies, and try to compare and analyze the characteristics of each group of enterprises, than to establish a basic understanding of the scale structure of China's printing industry.

I. Classification of sample enterprises in the printing industry

Due to statistical restrictions, the paper divides the hierarchy of printing companies and will base them on sample companies. The sample data were taken from the data of China's third industrial census in 1995. The number of sample enterprises in the printing industry was 18,343*, accounting for about one-tenth of the total number of printing companies in the country. The total industrial output value accounted for more than 95% of the total output value of the industry. They assembled the main production capacity and production equipment of the industry, and they are highly representative. Based on this, they analyze the structure of the printing industry and can be used to examine the entire picture of the printing industry.

This paper uses the annual sales revenue of printing companies as the standard for dividing the size of printing companies. Although compared with other indicators, it is subject to fluctuations in the operating conditions of enterprises, but the company's annual sales revenue can reflect the vitality of enterprises and reflect the level of production management factors (fixed capital, liquidity, and personnel). At present, the most practical indicators for measuring the scale of the company. According to the current business scale of Chinese printing companies, this paper selects the company's annual sales income of 1 million, 10 million as the basis for the size of the division, from which the printing industry can be divided into 3 levels (see the schematic diagram of the pagoda type). The upper, middle, and lower levels respectively represent the three types of companies in the Pagoda map (see Table 1 for the status of each floor).

Printing Industry Scale Structure

Upper: large-scale printing enterprise layer, the annual sales income of more than 10 million yuan, the number of companies is 880, accounting for about 5% of the total number of sample companies, sales revenue accounted for about 51% of total market sales. The average annual sales income of the company is 27,680,000 yuan, and the average value of the average fixed assets is 23,590,000 yuan.

Middle: Medium-sized printing enterprise layer, with annual sales income between 1 million and 10 million yuan, 7,211 companies, accounting for 40% of the total number of samples, and sales revenue accounting for approximately 42% of the total market sales . The average annual sales income of the company is 2.8 million yuan, and the average value of the average fixed assets is 2.03 million yuan.

Lower layer: Small printing enterprise layer, the annual product sales revenue is less than 1 million yuan, there are 9423 companies, accounting for 54% of the total number of statistical samples, sales revenue accounted for about 7% of the total market sales. The average annual sales income of the enterprise is 360,000 yuan, and the average value of the average fixed assets is 350,000 yuan.

Here, the average value of the original value of fixed assets at each level not only indicates the average equipment configuration level, but also indicates the configuration potential of the printing equipment at each layer.

The table shows the basic situation of each level of the company.

The upper tier (annual sales revenue ≥10 million yuan) middle tier (annual sales revenue between 1 million ~10 million renminbi) lower tier (annual sales revenue 1001 million renminbi) NUMBER OF NUMBER OF NUMBER OF ENTERPRISES (NUMBERS) 88071219423 NUMBER OF BUSINESS NUMBERS (%) ) 5% 40% 54% Total Sales Revenue (RMB 10,000) 24360641992964343381 Total Sales Revenue % (%) 51% 42% 7% Original Value of Fixed Assets (RMB 10,000) 235920335 Average Sales Revenue (RMB 10,000) 276828036

1. Comparison of ownership structure of sample enterprises

Table 2 Sample Enterprise Layered Ownership Structure Table

Upper Level Lower Level Total State-owned Enterprises 37% 21% 16% 20% Collective Enterprises 39% 63% 80% 71% Private Enterprises and Joint-Stock Enterprises 4% 10% 2% 5% Foreign Enterprises 20% 6% 2% 4% Total 100% 100 %100%100%



Table 2 shows that the proportion of enterprises with the same ownership system at each level is very different, indicating that their roles at all levels vary greatly. The proportion of state-owned enterprises in the upper, middle, and lower levels is 37% and 21% respectively. The 16% shows that at the upper level, state-owned enterprises are the backbone, while the role of state-owned enterprises is gradually weakened at the middle and lower levels. On the contrary, the share of collective enterprises in all levels is on the rise, with the proportions of 39%, 63%, and 80%, respectively, indicating that in the middle and lower levels, collective enterprises are the main components. The proportion of foreign-funded enterprises is similar to that of state-owned enterprises. The ratio of upper-level companies to large-scale enterprises is lower, and the ratio of lower-level companies is small. We can infer from this that most foreign-funded enterprises have large investment scale, high sales revenue, and occupy a leading position in the industry. Correspondingly, private companies and joint-stock companies have a high proportion of about 10% at the middle level, indicating that domestic capital's investment preference for printing companies is mainly in medium-scale printing companies.

Among all printing companies, the proportions of state-owned enterprises, collective enterprises, private enterprises, joint-stock enterprises, and foreign-funded enterprises accounted for 20%, 71%, 5%, and 4%, respectively. Collective enterprises account for the largest number in China's printing industry, among which township enterprises occupy A large share. In the Chinese printing market, private and foreign companies have developed rapidly and their market share has increased year by year.

The ownership of printing companies is different, and their business methods, decision-making procedures, financing channels, etc. are all very different. There are also great differences in equipment purchase behavior. State-owned enterprises can enjoy certain preferential policies, such as loans from the State Bank. However, in order to preserve assets, state-owned enterprises’ property rights disposal, major investment decisions, and even day-to-day business activities are subject to the supervision and management of relevant government departments. The autonomy of enterprises is subject to Certain restrictions, operational efficiency, decision-making efficiency are subject to certain constraints. The equipment investment decisions of township and village enterprises and private enterprises are completely autonomous, and the decision-making process is rapid, which is conducive to seizing market opportunities. However, the investment is limited by the assets owned by itself. Foreign-funded enterprises have the most abundant funds, and their investment decisions are fast, stable, and accurate. They cannot be ignored.

2. Comparison of sample business printing business structure

Table 3 Analysis of hierarchical business structure of sample enterprises

Upper-middle-middle-storey Lower-order book printing 254 (29%) 2050 (29%) 1971 (21%) 4275 (25%) Package printing 437 (50%) 2040 (29%) 944 (10%) 3426 (20%) Other printing 189 (21%) 3026 (42%) 6508 (69%) 9723 (55%) Total 880 (100%) 7116 (100%) 9423 (100%) 17424 (100%)

In Table 3, the structure of the printing business at each level is very different. Located on the top of the tower, 50% of companies are engaged in packaging and printing, 29% of companies are engaged in book printing, and 21% are engaged in other printing. At the middle level, the largest proportion of companies engaged in other printing is about 42%. Companies engaged in book printing, packaging and printing account for 29% each. A large number of companies located at the bottom of the tower are engaged in other printing, accounting for about 69%, while those engaged in packaging and printing account for the least, about 10%.

For the sample companies in the printing industry, the number of companies engaged in other printing is the largest, accounting for 55%, books and magazines printed at 25%, and packaging printing at 20%.

The development history of China's printing industry in the past 20 years shows that the development of packaging printing is faster than that of books and periodicals, and that the development of commercial printing is faster than that of packaging printing. In the "Ninth Five-Year Plan" of China's publishing industry during the "Ninth Five-Year Plan" and the packaging and printing industry, it is expected that the amount of books and magazines will increase at a rate of 6% per year from 1996 to 2000, and the average annual newspaper printing volume will increase by 8%. Around, the output value of packaging and printing will increase at a rate of about 10% per year. We can estimate that the growth rate of commercial printing output will be higher than 10%. The proportion of companies engaged in book printing, packaging and printing, and commercial printing in the entire printing industry will be further adjusted. The proportion of commercial printing and packaging printing is expected to increase further, and the proportion of books and periodicals printing will gradually decrease.

Specific to all levels, it is expected that at the upper level, the proportion of future packaging printing will further increase, mainly accounting for the original share of book printing; at the middle level, business printing and packaging printing will increase at the same time; while at the lower level, business and office printing will increase. It is the main direction for businesses to undertake business.

3. Comparison of hierarchical layout of sample enterprises

Table 5 shows the distribution of printing companies in the top, middle, and bottom 3 levels, 29 provinces, municipalities, and autonomous regions across the country. It also lists the rankings of top 10 companies in the province. From Table 5, we can infer the following conclusions:

1) Different levels and different geographical distribution characteristics. The upper-level enterprises are mainly concentrated in local regions such as Guangdong, East China, and municipalities directly under the Central Government. Guangdong alone accounts for 18.6% of the total number of enterprises; middle-level enterprises are mainly distributed in the economically developed provinces of the major regions, and the proportions of the first three provinces are very close, indicating that The printing power is relatively balanced; the density of the lower-level enterprises is related to the density of the local population. The top ranked provinces are all populous provinces in China, indicating that the lower-level enterprises mainly serve the regional economy.

2) The higher the level, the higher the degree of concentration. In the upper level, the number of printing companies in the first 10 provinces was 662, accounting for 75.23% of the total number of upper-level printing companies, and the proportion of middle and lower layers decreased to 70%, followed by 56.04%. This shows that the printing companies are relatively concentrated in the economy and culture. In developed regions, the scope of service radiation is relatively small and the distribution is scattered. The change in the share of the first province at each level further reflects this feature. The upper layer, Guangdong Province, accounting for 18.64%; the middle, Zhejiang Province, accounting for 11.96%; lower, Sichuan Province, accounting for 8.68%.

3) Some provinces have become major printing provinces with economies of scale and business radiation

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