The most popular view on the cost change of manufa

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From Fuyao Glass to see the cost changes in the manufacturing industry in the past 10 years, caodewang, the glass king of China Research Institute of listed companies, received unprecedented attention at the end of 2016. In an interview, caodewang frankly said that the high cost dilemma of China's manufacturing industry, including high tax burden, rising labor wages and high capital costs, caused wide-ranging discussion. Objectively speaking, Fuyao Glass (600660, buy), as the world's second largest automotive glass manufacturer, has more commercial and economic considerations in building factories in the United States, so it is not appropriate to judge whether to run away. However, through the Fuyao Glass incident, it is necessary to observe the cost changes and the impact on net profits of listed manufacturing companies in recent years

the truth about the rising cost of Fuyao Glass

combing the financial reports of Fuyao Glass since 2006, we can draw several conclusions: leading, the total growth rate of the company's labor, tax and interest costs far exceeded the growth rate of revenue in the same period. In terms of absolute scale, the company's revenue increased from 39% in 2006. RMB 3.5 billion rose to 154 in the third quarter of 2016. 5.4 billion yuan (annualized), with a cumulative increase of 2. 9 times. The cost of the three items in the same period increased from 4. RMB 4.4 billion rose to 42. 4.2 billion yuan, up 8. 56 times, far exceeding the increase in revenue in the same period. In terms of relative scale, the proportion of the three costs in revenue has increased year by year, with a cumulative increase of 11% in the past 10 years. 54 percentage points. In 2006, the total proportion of the three costs was 16. 52%, according to the third quarter report of 2016, the proportion of these three items rose to 28. 06%。

second, the cost growth rate exceeded the net profit growth rate. On the one hand, the rapidly rising costs and expenses and on the other hand, the slowly growing revenue scale have swallowed up the profit space of the enterprise. Although Fuyao Glass has repeatedly mentioned the control of costs and expenses in its financial statements, which has also ensured the growth of gross profit margin and net profit margin, from the data, in recent years, the growth rate of net profit has been significantly weaker than that of cost, and the gap between the proportion of cost in revenue and net profit margin has expanded rapidly since 2012. In 2012, the three costs accounted for 21% of revenue. 12%, 6% higher than the net interest rate. 24 percentage points; In the third quarter of 2016, the cost ratio was 9% higher than the net interest rate. 3 percentage points. It means that the cost rises rapidly, while the net profit grows slowly in the same period. The gap between the two gradually widens, and the excessively rising cost accelerates to squeeze the profit space of the enterprise

third, labor costs rose the fastest, followed by tax costs. From the perspective of cost composition, the fastest increase is the labor cost, which has continued to grow for more than 10 years. The labor cost expenditure in 2006 was only 1. RMB 800million, which increased to 27 after the annualized treatment in the third quarter of 2016. 8.2 billion yuan, up 15. 4X. Per capita salary from 2. 280000 yuan rose to 12. 20000 yuan, an increase of more than 4 times. In addition, the increase of tax burden cost is also relatively considerable, accounting for 9% of revenue. 45%, up 3. 76 percentage points. From the perspective of profit tax burden index, the company has continuously fluctuated between 40% and 50% in recent years, and there is no obvious trend change. However, it should be noted that the profit tax burden refers to the proportion of the tax burden in the net profit. Net profit is affected by many factors, including management level, non recurring profit and loss and other indicators, so the tax burden level of revenue can better reflect the change of tax burden. The interest cost was in the decline channel, accounting for nearly 4 percentage points of the decline in revenue

under the background of rising costs year by year, Fuyao Glass still maintains the continuous growth of gross profit and net profit, which is the concentrated embodiment of the company's operation and management ability. In recent years, the gross profit rate has remained above 40% and the net profit rate is close to 20%, which is rare in the manufacturing industry. In a sense, it conforms to the definition of good business and good company, and reflects the strong profitability and competitive advantage of the enterprise (Aiji, net worth, information). At the same time, it can be seen that the gap between gross profit margin and net profit margin is widening, which reflects from another aspect that the rising costs devour the profit space of the enterprise

cost perspective of manufacturing industry

Fuyao Glass is only a microcosm of the cost change of manufacturing industry. In recent years, with the slowdown of domestic economic growth, it is an indisputable fact that the economic benefits of the manufacturing industry have declined. Many entrepreneurs reflect that their rising costs are also unbearable. Most manufacturing companies are distributed in traditional industries. On the one hand, the transformation requires time costs. On the other hand, the rising costs and declining benefits make the enterprises in a difficult position for survival, which restricts the transformation and upgrading of enterprises (Aiji, net worth, giving play to the information of demonstration aggregation effect) and competitiveness training. An objective and reasonable analysis of the overall cost change trend of the manufacturing industry is conducive to a more comprehensive understanding of the current situation

the scale of manufacturing companies is huge, accounting for about 60% of the total number of listed companies. In order to more comprehensively investigate the rising cost of manufacturing industry, we will expand the research object to manufacturing listed companies listed before 2013, with a revenue of more than 10 billion yuan in 2015, non backdoor listed shares and non ST shares for a comprehensive analysis. There are 161 companies that meet the above conditions, which are distributed in 19 Shenwan level industries, with a large number of steel, chemical, non-ferrous and automotive industries. There are 138 main boards and 23 small and medium-sized boards. In terms of the nature of enterprises, there are 42 private enterprises and 109 state-owned enterprises

the tax burden is calculated by subtracting "all tax returns received in the current year" from "all tax paid in the current year" in the cash flow statement of the listed company. In terms of measuring the tax burden, two angles are adopted. One is the income tax burden, that is, the proportion of the tax burden in the operating income. One is the tax burden on profits, that is, the proportion of tax burden in total profits

in terms of labor cost measurement, it is calculated by "cash paid to and for employees" in the cash flow statement of the listed company. In terms of interest cost, it is calculated by "interest expense - interest income" in the notes to financial statements of listed companies, and its change is measured by the proportion of interest cost in revenue. (the caliber of all financial indicators in this paper is the same.)

combing the annual reports of these listed companies, the global economic downturn, declining demand, declining product prices and domestic economic downturn are the high-frequency words of financial reports, which to some extent perspective the plight of the current industrial economy. From its financial data, we can observe its expense cost pressure and draw the following conclusions:

first, cost acceleration vs revenue deceleration. The scale of labor, tax and interest costs of 161 manufacturing companies rose steadily, reaching 612.8 billion yuan, 680.8 billion yuan, 739.5 billion yuan and 752.9 billion yuan (annualized) respectively from 2013 to 2016, with a cumulative increase of 22. 85%, with an average annual growth rate of 5. 71%。 In the same period, the growth rate of operating income slowed down and declined in 2015, with a cumulative increase of 6% in the four years. 78%, about 16 percentage points lower than the cost increase. For example, Shougang Co., Ltd. (000959, bought), the company's revenue from 2013 to 2015 increased by -8 year-on-year. 44%、-8。 51%、-23。 61%、3。 99%, the cost rose 7 times against the trend. From its cost structure, the biggest increase is the wage cost, followed by the tax cost. AVIC power (600893, buy) has increased its revenue by 1% in the past four years. 12 times, but the cost has increased by 3. 18 times. Ziguang shares (000938, buy) has seen its revenue rise by 1% in the past four years. 78 times, with a cost increase of more than 9 times over the same period

the slowing growth of revenue and rising costs swallowed up corporate profits. The data showed that the net profits of 161 manufacturing companies continued to decline for three years from 2013 to 2015. 2 the degradation time and cycle of bioplastics were effectively regulated. In 2016, there were signs of warming under the implementation of supply side reform. In addition, the number of large but not strong companies is increasing year by year, with a revenue of more than 10 billion yuan. Among the companies, the mixture of acrylonitrile butadiene fr flame retardant polycarbonate ABS (acrylonitrile butadiene styrene) was an ideal material for battery seats and battery modules from 2013 to 20. In the third quarter of 2016, the number of loss entrepreneurs was 9, 10, 23 and 13 respectively

II. The tax burden exceeds the net profit. Profit tax burden is a commonly used indicator to measure the tax burden, which is calculated by the ratio of all taxes to net profit. Statistics show that the profit tax negative rates of 161 companies since 2013 are 107%, 113%, 138% and 97% respectively. It can be seen that the tax burden has exceeded the net profit for three consecutive years. Most of the companies with higher profit tax negative rate are nonferrous metal and steel companies, which is related to the weak economic environment in recent years. For example, Chinalco (601600, bought) has sustained losses in recent years, and the taxes paid are 41% respectively. 5.6 billion yuan, 39. 3.3 billion yuan, 46. RMB 700million, 27. RMB 0.9 billion, and the net profits attributable to the parent company in the same period were respectively 9. RMB 4.8 billion, -162. 1.7 billion yuan, 2. RMB 0.6 billion, 1. RMB 0.8 billion, with an average profit tax burden of nearly 13 times. The company said that the main reason for the performance loss was the slowdown in global demand, overcapacity and the decline in aluminum prices. This year, with the recovery of product prices and the initial success of domestic capacity removal, the performance of the iron and steel non-ferrous industry has warmed up. In addition, Great Wall computer (000066, buy), which is currently implementing a major asset restructuring, is also a typical representative that taxes far exceed net profits. Previously, the company's main business was traditional PC computers and liquid crystal displays. In the past four years, the tax expenses far exceeded the profitability of the enterprise. Since 2013, the net profits of the company have been 29.49 million yuan, 57.72 million yuan, -35.67 million yuan and 26.88 million yuan respectively, and the tax expenses during the period have been 15. 2.2 billion yuan, 9. 9.7 billion yuan, 13. 2.7 billion yuan, 10. 3.9 billion yuan, the tax burden is 51% of the net profit. 6、17。 28、-37。 22、38。 64 times

III. labor costs are rising year by year. The rise of China's manufacturing industry benefits from relatively low labor costs. At present, the advantage of demographic dividend is gradually disappearing, which is also confirmed by the rising labor costs of manufacturing industry. Among the three costs, the highest increase was in labor costs, which rose from 322.7 billion to 439.7 billion in the past four years, with a cumulative increase of 36. 26%, with an average annual increase of 9. 07%, about 7% higher than the revenue. Per capita salary expenditure increased from September 2013. RMB 260000 rose to 11% in 2016. 490000 yuan (annualized), an increase of 24%

in terms of relative proportion, labor cost accounts for 5% of revenue. 75% to 7. 33%, far more than that of the same period 4. 68% net profit margin level. From the perspective of industry characteristics, the per capita wage increase in the automotive industry was the highest, and the average salary of 19 listed companies increased from 8. 420000 rose to 12. 870000 yuan, an increase of 52. 87%; The electronics industry followed closely, from 6. 870000 yuan rose to 10. 330000 yuan, up 49. 88%, and industries such as computer, food and beverage, agriculture, forestry, animal husbandry and fishery also led the increase. The salary level of the mining industry declined

IV. interest expenses fell against the trend. The high cost of capital has been frequently mentioned in recent years to reflect the operational difficulties of the real economy. According to the data, interest is the smallest of the three expenses in terms of absolute scale, with an average annual scale of about 60billion yuan, accounting for about 1% of revenue and 28% of net profit. From its change trend, it has shown a downward trend in the past two years after a slight increase in 2014. Since 2013, it has accounted for 1% of revenue respectively. 06%、1。 15%、1。 13%、0。 70%。 There are two main reasons for the decline in interest expenses: on the one hand, thanks to the loose monetary policy, the loan interest rate has been lowered six times since 2014, and the one-year loan interest rate has been lowered to 4. 75%, a decrease of 1. 25 percentage points; On the other hand, the unblocked refinancing channels in the capital market and the developed refinancing tools have increased the proportion of direct financing in the capital market and reduced the capital cost. From the financial report of the company with a large decrease in interest expenses, shentianma said that the decrease in financial expenses was mainly due to the return of bank loans and the corresponding decrease in interest expenses. Huayi Group (600623, buy) said that the decrease in interest expenses was mainly due to the decrease in borrowings and financing costs during the reporting period


analysis from the above

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