Why Beijing Publishing and Printing Enterprises Saw a Revenue-Profit Scissors Gap Last Year

Published:2021-04-16 · Industry News

[ppzhan abstract] According to statistics, in 2011 the revenue and profits of Beijing's publication printing enterprises presented a scissors differential. Company staff said that although revenue was considerable, the profits that could actually be derived from it were extremely low. What is it that gives rise to such a phenomenon?

A preliminary analysis suggests that the "scissors differential" between the revenue and profits of publication printing enterprises may be related to the following two factors.

First, enterprises' operating costs keep climbing while printing prices continue to decline — this is also a problem common to publication printing enterprises. Second, the cost of state-owned enterprise reform is relatively high. For example, at a large state-owned printing plant in Beijing, three enterprises were integrated into one after reform, with a large number of employees redeployed; this expense alone amounted to 180 million yuan, and its impact on profits is obvious. At the same time, however, some private publication printing enterprises in Beijing have developed rapidly and are operating very well. For instance, a private publication printing enterprise in Beijing with only 30–40 employees can achieve an annual output value of more than 9 million yuan, and after deducting the corresponding costs and expenses, its profits are still quite considerable.

According to statistics compiled by the Beijing Printing Association (hereinafter referred to as the "Beijing Printing Association") on the printing industry in Beijing in 2011, in 2011 Beijing had 1,684 printing enterprises of all types, 2 fewer than the previous year; main business revenue was 27.51 billion yuan, up 27.8% over the previous year. Among them, there were 673 publication printing enterprises, 3 more than the previous year; main business revenue was 10.29 billion yuan, up 7.1% over the previous year. The 18 publication printing enterprises with main business revenue of more than 100 million yuan each recorded combined main business revenue of 4.026 billion yuan. Although the main business revenue of publication printing enterprises rose in 2011, their profits fell sharply, from 280 million yuan in 2010 to 150 million yuan in 2011, a decline of 46%.

— This article is reposted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-362029.html

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