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capital; Joint-stock companies with 50% and less than of charter capital shared
by the State.

Foreign direct investment sector includes enterprises with capital directly
invested by foreigners, irrespective of the proportion of foreign capital. This
sector comprises following types of enterprises: 100% foreign invested
enterprises; State enterprises joint venture with foreign parties; Joint ventures
between foreign parties and other domestic partners.

Employees of the enterprise reflect entire number of persons managed,
used and paid wage/salary by an enterprise. Employees of enterprise do not
include: (1) Persons who receive materials of the enterprise to work at their
home (family labor); (2) Persons who are working as apprentices that sent from
schools, training centers for practice and not paid by the enterprise; (3) Persons
who are sent to work in an enterprise by a joint venture and the enterprise does
not pay wage/salary.

For private enterprises, they are also considered employees of the
enterprise. For persons who are members of the family and engage in
management of production or directly produce but do not receive wage/salary -

their incomes remixed with the profit of business.
Annual average capital of the enterprise

Capital of the enterprise is advance amount for business activities of the
enterprise including total available capital (owners’ equity) of the enterprise and
liabilities (Loans and other payables). The annual average capital of the
enterprise is calculated as the average capital of the enterprise at the beginning
of the year and at the end of the year.

Formula:

Capital at the beginning + Capital at the end
The annual of the period of the period
average capital = 2

Fixed assets and long-term investment of the enterprise is total
remaining value of fixed assets, value of basic construction cost in progress,
deposits, long-term deposits and other long-term financial investment amount
of the enterprise.

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