Condition of producers

In 2000, the total industrial output value of the 42 fairly large scale producers was 5.858 billion yuan, a rise of 3.34 per cent on 1999, and their output was 576,900 tons, a gain of 1.59 per cent over 1999. The total sales volume of 40 producers was 572,700 tons, an increase of 2.19 per cent on 1999, and the proceeds from sale amounted to 5.550 billion yuan, up by 3.45 per cent on 1999.

Production and marketing of key paint producers were essentially satisfactory with a definite growth, but far below the average national growth rate. Growth in output and sales volume was basically synchronized. In 1999 and 2000 the production/marketing ratio of paints and coatings was 1:1.01, indicating that the producers had retreated from the trend of production in excess of sales and going blindly after volume. Production and marketing in balance and inventory under control were more favourable to a rational distribution of business funds.

Table 6.9.5: Top 10 enterprises by sales of paints and coatings in 2000
No.	Company	Sales (million yuan)
1	Nippon (China) Co Ltd	1,470
2	Shanghai Huasheng Co Ltd	441
3	Shanghai Huili Co Ltd	407
4	Shunde China Resources Co Ltd	403
5	Guangzhou Zhuhua Group Co Ltd	368
6	Tianjin Dengta Co Ltd	350
7	Shanghai Paint Co Ltd	300
8	Xiangjiang Group Co Ltd	285
9	Shandong Donghua Group Co Ltd	265
10	Chongqing Sanxia Co Ltd	256

In spite of production and marketing taking a turn for the better, the economic benefits of the producers continued to diminish. In 2000, the added value tax turned over to the state by 36 producers totalled 251 million yuan, a fall of 5.65 per cent from 266 million yuan in 1999, and their profits declined by 2.37 per cent from 429 million yuan in 1999 to 419 million yuan.