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Market Research Report : Internet-of-Things Market in China 2012

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For the complete report, get in touch with us at : info@netscribes.com …

For the complete report, get in touch with us at : info@netscribes.com


The Internet of Things Market in China is part of Netscribes’ Information Technology Industry Series reports. The market will be boosted by the huge industry applications coupled with widespread adoption of internet in China.

The report begins with the definition of Internet of Things (IoT) and its key characteristics followed by a basic structure of IoT. A clear distinction between Internet and IoT is also demonstrated followed by an illustration on the network and evolution of IoT alongwith its everyday applications.

The market overview section provides the domestic market size and growth potential of IoT for the period 2010-2020. Furthermore, the report identifies major IoT hubs alongwith those cities having strong growth potential in the context of IoT in China. In addition, the report delves into the sectors of focus having IoT relevance in China followed by the advantages and disadvantages of IoT.

Key factors driving the growth of IoT market in China include industry applications, rise in use of smartphones, widespread usage of internet, cost reduction, infrastructural advantage, and supply and demand drive.

The report finds that Chinese industries using mature sensor technologies will boost the domestic IoT market. China had witnessed intense IoT applications in the domains such as ITS, smart manufacturing, agriculture, smart grid and healthcare. Smartphones sales in china is estimated to rise to 137 mn units by the end of 2012 while internet population in China is estimated to rise by 17% during 2007-15 which will further drive the domestic IoT market. Inverse relation between price of sensing and use of sensory devices attracts clients to use more sensing applications. China’s IoT market is also driven by its infrastructural advantage coupled with strong supply and demand cues.

Players operating in the market also face challenges which are impeding their development and growth. Major challenges identified in the report include lack of unified standards, safety & privacy concerns, high application cost, and lack of understanding IoT.

The report finds that lack of unified standards in China’s IoT market hinders the industrial cooperation. Furthermore, privacy protection must cover technical solutions, as well as regulatory, market-based and socio-ethical consideration as security concerns increases among consumers. High costs of sensors or RFID tags coupled with lack of understanding of IoT impedes growth prospects.

The report highlights key initiatives taken by the China Central Government and China's Ministry of Finance for the development of domestic IoT market. The section also provides a layout of the IoT investment focus according to the 12th Five Year Plan of China.

Key trends in the IoT market include industry growth led by applications, emerging integrated platforms and emerging business models.

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  • 1. Internet of Things Market –Internet of Things Market ChinaApril 2012
  • 2. •Introduction•Market Overview•Market Overview  China•Drivers & Challenges•Government Initiatives•Initiatives by Companies •Trends•Partnerships •Competition p•Key Takeaways INTERNET OF THINGS MARKET IN CHINA 2012.PPT 2
  • 3. Executive Summary   Internet of Things (IoT) market in China is expected to reach USD ‐ bn in 20‐ with a CAGR of x% over 20‐ ‐ 20‐  Chinese government plans will invest in core‐technology research, industrial chain building, and application of the  Market Internet of Things (IoT) by 20‐ Drivers: Challenges: ‐ Growth in China’s RFID Market  ‐ Lack of Unified Standards ‐ Industry Applications ‐ Safety & Privacy Concerns Drivers &  ‐ Rise in Use of Smartphones  ‐ High Application Cost  Challenges ‐ Wid Widespread Usage of Internet dU fI ‐ Lack of Understanding  ‐ Cost Reduction ‐ Infrastructural Advantage ‐ Supply and Demand Drive  Industry Growth Led by Applications  Trends  Emerging Integrated Platforms   Emerging Business Models   IoT Development Plan in China  IoT Standard in China Government   Initiatives by Chinas Central Government and Chinas   IoT Initiatives by China’s Provincial Government  Initiatives Ministry of Finance   Smart City Action Plan of Shanghai (2011‐2013)  IoT Investment Focus under China’s 12th Five Year Plan   Major foreign players in the market  include Company 1., Company 2, Company 3, Company 4 and othersCompetition  Key domestic players in the market include Company 5, Company 6 and others INTERNET OF THINGS MARKET IN CHINA 2012.PPT 3
  • 4. Internet of Things (IoT) ‐ Introduction A world‐wide network of uniquely addressable Internet of Things (IoT) interconnected objects, based on standard communication IoT integrates sensors and devices into everyday objects that  A virtual medium where "things" can communicate  are connected to the Internet over fixed and wireless  to each other, to users, to computers and systems networks, anytime, anywhere Characteristic 6 Characteristic 1 Characteristic 5 Key Characteristics of IoT Characteristic 2 Characteristic 4 Characteristic 4 Characteristic 3 Characteristic 3 Sensor technology, IPv6, WPAN, WLAN, 3G/LTE, autocontrol technology,  Latest technologies supporting IoT Latest technologies supporting IoT nanotechnology, embedded intelligent  technology, etc.Note: IPv6 – Internet Protocol Version 6, WPAN ‐ Wireless Personal Area Network, WLAN ‐ Wireless Local Area Network, 3G – 3rd Generation, LTE ‐ Long Term Evolution INTERNET OF THINGS MARKET IN CHINA 2012.PPT 4
  • 5. Internet vs Internet of Things (IoT) Internet Internet of Things • Feature 1 • Feature 4 • Feature 2 • Feature 5 • Feature 3 • Feature 6 Mid 1990s ‐ Spread of WWW Mid 1990s ‐ Spread of WWW Mid 2000s Upgrade to Web 2 0 Mid 2000s ‐Upgrade to Web 2.0 Late 2000s  Practical use of IoT Late‐2000s ‐ Practical use of IoTSignificance of the Internet • Significance 1 • Significance 2 • Significance 3Principal subject connected • Subject 1 • Subject 2 • Subject 3 to the Internet Principal technology • Technology 1 • Technology 2 • Technology 3 INTERNET OF THINGS MARKET IN CHINA 2012.PPT 5
  • 6. Evolution of Internet of Things (IoT)  China is one of the four founding members and dominant powers that are permitted to develop IoT together with  Germany, USA and South Korea Ubiquitous Concept initiationConcept initiation ITU Report of IoT ITU Report of IoT IBM Smart Planet IBM Smart Planet Experience China Experience China Network 1999 2004 2005 2008 ‐ 09 2009 ‐10• Development 1 • Development 3 • Development 4 • Development 5 • Development 8• Development 2 • Development 6 • Development 9 • Development 7 • Development 10 Internet + Internet of Things = Wisdom of the Earth INTERNET OF THINGS MARKET IN CHINA 2012.PPT 6
  • 7. Internet of Things (IoT) Network in China  RFID / Sensor Network  With RFID more and more objects  Flow communicate with each other,  slowly creating a network of  information  internet of things information ‐ "internet of things" Access Gateway  NGN, Internet, etc.. Flow eware  Middle xx xx xx xx xx xx Flow Applications  / Services xx xx xx xx xx xxNote: RFID ‐ Radio Frequency Identification Device, NGN ‐ Next Generation Network, SCM ‐ Supply Chain Management INTERNET OF THINGS MARKET IN CHINA 2012.PPT 7
  • 8. IoT market in China is expected to grow with x% CAGR  during 20‐ ‐20 ‐ reaching over USD ‐ bn by 20‐ Internet of Things (IoT) ‐ Market Overview• IoT market in China is expected to reach USD ‐ bn by 20‐ from USD ‐ bn in 20‐ with a compound annual growth rate  (CAGR) of x% during 20‐ – 20‐• Chinese government plans to promote the investments in core‐technology research, industrial chain building, and  application of the Internet of Things (IoT) by 20‐  NDRC and MIIT are expected to infuse capital in supporting the IoT industry in 20‐  New strategic emerging industries which includes IoT is estimated to add y% to GDP in China’s 12th Five‐Year Plan g g g y• IoT market will make significant contribution to the Chinas economy by developing agriculture and promoting  industrialization Market Size and Growth USD bn 200 a11 150 x% a10 a9 a8 100 a7 a6 a4 a5 a2 a3 50 a1 0 20‐ 20‐e 20‐e 20‐e 20‐e 20‐e 20‐e 20‐e 20‐e 20‐e 20‐eNote: NDRC ‐ National Development and Reform Commission;  MIIT – Ministry of Industry & Information Technology INTERNET OF THINGS MARKET IN CHINA 2012.PPT 8
  • 9. City 1, City 2, City 3 are China’s key potential IoT hubs along with other major cities such as City 4 and City 5IoT Hubs of China City 1 City 9 City 10 City 12 City 11 City 11 City 14 City 2  City 13 City 8   City 15 City 3 City 4 City 5 y City 17 Cit 17 City 7 City 16 City 6 Major Cities  Potential Cities • Finding 1• Finding 2• Finding 3 INTERNET OF THINGS MARKET IN CHINA 2012.PPT 9
  • 10. Focus Sectors SAMPLE Comparison in Sector Focus by IoT Market in China Focus Applications Application 1 Application 2 Application 3 Application 4 Application 5 Application 6Sector ASector ASector BSector CSector DSector ESector FSector GSector HSector I China Europe & America Japan & Korea Finding INTERNET OF THINGS MARKET IN CHINA 2012.PPT 10
  • 11. SAMPLE IoT Market Environment in China Pros Cons Finding 1 Finding 5Environment A Finding 2 • Finding 6Environment B Finding 3 Finding 7Environment C Finding 4 Finding 8Environment D INTERNET OF THINGS MARKET IN CHINA 2012.PPT 11
  • 12. Drivers & Challenges – Summary Challenges Drivers Lack of Unified Standards Industry Applications Safety & Privacy Concerns Rise in Use of Smartphones  Widespread Usage of Internet p g High Application Cost Cost Reduction Lack of Understanding Infrastructural Advantage I f t t l Ad t Supply and Demand Drive INTERNET OF THINGS MARKET IN CHINA 2012.PPT 12
  • 13. Industries using mature sensor technologies will boost the IoT market in China Industry Applications (1/2) Impact• Finding 1• Finding 2 Applications in Pilot Cities in China City 1 Application 1 City 2 Application 2 City 3 Application 3 RFID being one of the underlying technology of IoT finds applications in: A B  C D E F G H I J K L INTERNET OF THINGS MARKET IN CHINA 2012.PPT 13
  • 14. Smartphones sales is estimated to have risen to ‐ mn units by the end of 20‐Rise in Use of Smartphones  Impact• Finding 1• Finding 2  Sub‐finding 1  Sub‐finding 2 • Finding 3 Finding 3  Sub‐finding 3  Sub‐finding 4• Finding 4 g• Finding 5 Rising Smartphone Sales Top 5 Countries – Mobile Phone users (20‐) mn units No. in mn China has highest mobile  x% phone user in 20‐ 200 1,000 b1 b2 a2 a1 100 500 b3 b4 b5 0 0 20‐ 20‐e Country  Country  Country  Country  Country Note: WCDMA refers to Wideband Code Division Multiple Access 1 2 3 4 5 INTERNET OF THINGS MARKET IN CHINA 2012.PPT 14
  • 15. Internet population in China is estimated to rise by x%  during 20‐‐20‐ Widespread Usage of Internet Impact •Finding 1 Finding 1  Sub‐finding 1  Sub‐finding 2  Sub‐finding 3 •Finding 2 Finding 2 Internet Population Internet Population Top 5 Countries – Internet users(20‐) Top 5 Countries – Internet users(20‐) No. of users Penetration mn % China has the largest  No. in mn internet user base in  800 a6 60 x% 600 the world a5 c1 600 a4 a3 b6 40 400 400 a2 b5 c2 a1 b4 20 200 b3 200 b2 c3 c4 c5 b1 0 0 0 20 20‐ 20 20‐ 20 20‐ 20 20‐ 20 20‐ 20 e 20‐e Country  C C t Country C t Country C t Country  C t Country t No. of users Penetration 1 2 3 4 5Note: Figures includes users accessing internet on PC as well as mobile devices INTERNET OF THINGS MARKET IN CHINA 2012.PPT 15
  • 16. Low sensing costs attracts increased usage making sensing devices widely accepted among buyersCost Reduction Impact•Finding 1Price Finding 2 Sensing Finding 3 Sub‐finding 1 Finding 4 Sub‐finding 2 INTERNET OF THINGS MARKET IN CHINA 2012.PPT 16
  • 17. Privacy protection must cover technical solutions, as well as regulatory, market‐based and socio‐ethical considerationSafety & Privacy Concerns Impact• Finding 1  Sub‐finding 1  Sub‐finding 2• Finding 2• Finding 3 Technical • xx Legal / Regulatory Socio‐ethical Privacy •xx Protection • xx Economic / Market • xx INTERNET OF THINGS MARKET IN CHINA 2012.PPT 17
  • 18. IoT Development Plan in China Development 3 Development 5 2011‐2012 2011 2012 2013e‐2015e 2013 2015 2015e‐2020e 2015 2020 Development 1 Development 2 Development 4 INTERNET OF THINGS MARKET IN CHINA 2012.PPT 18
  • 19. Chinese government planned total investment of USD ‐ bn to develop the country’s IoT industry by 20‐ Chinas Central Government  Chinas Ministry of Finance  • Finding 1 • Finding 5 • Finding 2 • Finding 6 • Finding 3 Sub‐finding 1 • Finding 4 Sub‐finding 2 • Finding 7 Sub‐finding 1 Sub‐finding 2 Sub‐finding 3 Sub‐finding 4 INTERNET OF THINGS MARKET IN CHINA 2012.PPT 19
  • 20. IoT investment focus under China’s 12th Five Year Plan A K B J C IoT Investment & Development Focus  under China’s  12th Five Year Plan I D H E G INTERNET OF THINGS MARKET IN CHINA 2012.PPT 20
  • 21. USD ‐ bn will be invested in smart grid and USD ‐ bn in ITS as per China’s 12th Five Year Plan SAMPLE  A and B are estimated to be most heavily invested sectors • Finding 1 • Finding 2 USD ‐ bn Investment Plan USD b I t t Pl 2009 ‐ 2010 2011 ‐ 2015 2016 ‐ 2020 Finding 3 • Development  • Development B • Development C A INTERNET OF THINGS MARKET IN CHINA 2012.PPT 21
  • 22. IoT Standards in China (1/2)IoT Standard Matrix SAMPLE  Current IoT Related Standard Necessity and Feasibility of New IoT Standard Global Standard Local Standard Necessity Feasibility Data standard xx xx xx xx xx pplication Layer Software Frame xx xx xx xx xx Ap Long distance (fix  xx xx xx xx xx line) Short distance (fix  er xx xx xx xx xx Communication laye line) Long distance  xx xx xx xx xx (wireless) Short distance  xx xx xx xx xx (wireless) Sensing er laye xx xx xx xx xx INTERNET OF THINGS MARKET IN CHINA 2012.PPT 22
  • 23. SAMPLE IoT Initiatives by China’s Provincial Government (1/3) City A • Initiatives A City B • Initiatives B City C • Initiatives C City D • Initiatives D City E • Initiatives E INTERNET OF THINGS MARKET IN CHINA 2012.PPT 23
  • 24. Smart City Action Plan for Shanghai (20‐‐20‐) x1 projects Plan A Findings x2 projects Plan B Findings x3 projects Plan C Findings x4 projects Plan D Findings INTERNET OF THINGS MARKET IN CHINA 2012.PPT 24
  • 25. Initiatives by Companies (1/2) Companies InitiativesCompany 1 • Initiatives taken 1Company 2 • Initiatives taken 2Company 3 • Initiatives taken 3Company 4 • Initiatives taken 4Company 5Company 5 • Initiatives taken 5 Initiatives taken  5 INTERNET OF THINGS MARKET IN CHINA 2012.PPT 25
  • 26. Trends – Summary Industry Growth Led by  Applications  A li ti Key  Trends Emerging Business Emerging Integrated  Models  Platforms  INTERNET OF THINGS MARKET IN CHINA 2012.PPT 26
  • 27. Widespread enterprise and industry applications leads to the growth in IoT market in ChinaIndustry Growth Led by Applications (1/2) Industry • Finding 1 g applications  applications boosting IoT  market in China Finding 2 • Sub‐finding 1 Finding 3 Finding 3 • Sub‐finding 2 Finding 4 INTERNET OF THINGS MARKET IN CHINA 2012.PPT 27
  • 28. NRI allies with Beijing University of Post & Communications to develop proposals for China’s IoT projects Organizational structure of China and Japan Business Alliance on the IoT Secretariat ‐ Japan  Secretariat ‐ China  Nomura Research Institute (NRI) Beijing University of Posts and Telecommunications Managing members (16 entities) • •Managing members (9 entities)Managing members (9 entities)• XX Association Presenting Proposals A B Note: Information above are as of Jan 14, 2011 INTERNET OF THINGS MARKET IN CHINA 2012.PPT 28
  • 29. IoT related Partnerships over the period 2010 ‐ 2012 Organizations Partnerships Organization 1 Organization 2 • Partnership 1 Organization 3 Organization 4 • Partnership 2 Organization 5 Organization 6 • Partnership 3 Organization 7 Organization 8 • Partnership 4 Organization 9 Organization 10 • Partnership 5 INTERNET OF THINGS MARKET IN CHINA 2012.PPT 29
  • 30. Major Players in China’s IoT Value Chain System  Sensor and  Communication  Network  Integrator and  Service Operators  Chipset Module Operators  Middleware• Company 1 • Company 4 • Company 8 • Company 11 • Company 14• Company 2 • Company 5 • Company 9 • Company 12 • Company 15• Company 3 Company 3 • Company 6 Company 6  • Company 10 Company 10  • Company 13 Company 13 • Company 16 Company 16 • Company 7 INTERNET OF THINGS MARKET IN CHINA 2012.PPT 30
  • 31. Major Domestic Public Companies – Summary (1/2) Size of the Bubble represents Market Capitalization in USD mn Net Profit3,000 m12,5002,0001,5001,000 500 m2 0 Total Income 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000 28,000 30,000 32,000 34,000 36,000 38,000 40,000 42,000 44,000 Company A Company A Company B Company BNote: Total income and Net Profit figures are in USD mn for the year ending Dec 31st  2011;  Market Cap figures for Company A is for Mar 29th, 2012 and for Company B is for  Mar 30th.2012 INTERNET OF THINGS MARKET IN CHINA 2012.PPT 31
  • 32. Major Domestic Public Companies – Summary (2/2)Total Income and Profit for Major Domestic Companies  t1 Company A n1 t2 Company B n2 Total Income Net Income Note: All figures are in USD mn for the year ending Dec 31st 2011 INTERNET OF THINGS MARKET IN CHINA 2012.PPT 32
  • 33. Domestic Company – Company A Company Information Locations – China Company 5Corporate Address x, y Avenue, City 5, City 5 Pin‐code,  CountryTel No. xxx‐yyy‐zzz Fax No. xxx‐yyy‐zzz Website ‐Year of IncorporationY fI ti 19Ticker Symbol xxStock Exchange yyProducts and ServicesProducts and Services Headquarters H d t Category Products/ServicesIntegrated  Key People Wireline voice, mobile voice, Internet, Telecommunication  managed data and leased line, value managed data and leased line value‐Services Name N Designation D i ti added services, integrated information  Person 1 Chairman of the Board, CEO, General  application services, and other related  Manager services, as well as prepaid calling cards Person 2 President, Chief Operating Officer & ED Person 3 CFO, Executive Vice President & ED INTERNET OF THINGS MARKET IN CHINA 2012.PPT 33
  • 34. Domestic Company – Company A  Financial Snapshot i i lS h Key Ratios K i y‐o‐y change  Particulars  2011 2010 2009 2008 Total Income  Total Income Profit (2011‐10) USD mn USD mn  Profitability Ratios Profit / Loss a440,000 a3 3,000 Operating Margin ‐ ‐ ‐ ‐ ‐ a230,000 a1 Net Margin ‐ ‐ ‐ ‐ ‐ 2,000 Profit Before Tax Margin ‐ ‐ ‐ ‐ ‐20,000 1,000 Return on Equity ‐ ‐ ‐ ‐ ‐10,000 Return on Capital Employed ‐ ‐ ‐ ‐ ‐ 0 0 Return on Working Capital ‐ ‐ ‐ ‐ ‐ 20‐ 20‐ 20‐ 20‐ Return on Assets ‐ ‐ ‐ ‐ ‐ Financial Summary  Return on Fixed Assets ‐ ‐ ‐ ‐ ‐ Cost Ratios • The company earned a net profit of USD  ‐ mn in FY 20‐, as  Operating costs (% of Sales) ‐ ‐ ‐ ‐ ‐ compared to net profit of USD  ‐ mn in FY 20‐ Administration costs (% of  ‐ ‐ ‐ ‐ ‐ • The company reported total Income of  USD ‐ mn in FY 20‐,  Sales) registering an increase of  x1 % over FY 20‐ registering an increase of x1 % over FY 20 Interest costs (% of Sales) Interest costs (% of Sales) ‐ ‐ ‐ ‐ ‐ Liquidity Ratios • The company earned an operating margin of x2 % in FY 20‐ a  Current Ratio ‐ ‐ ‐ ‐ ‐ decrease of x3percentage points over FY 20‐ Cash Ratio ‐ ‐ ‐ ‐ ‐ • The company reported debt to equity ratio of x4 in FY 20‐, a  Leverage Ratios decrease of x5 % over FY 20‐ Debt to Equity Ratio ‐ ‐ ‐ ‐ ‐ Debt to Capital Ratio b i l i ‐ ‐ ‐ ‐Financial Summary  ‐Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐ Indicators Value (29/03/2012) Efficiency Ratios Market Capitalization (USD) x1 mn Fixed Asset Turnover ‐ ‐ ‐ ‐ ‐ Total Enterprise Value (USD) Asset Turnover ‐ ‐ ‐ ‐ ‐ x2  mn Current Asset Turnover ‐ ‐ ‐ ‐ ‐ EPS (USD) EPS (USD) x3 Working Capital Turnover ‐ ‐ ‐ ‐ ‐ PE Ratio (Absolute) – (30th Mar 2012) x4 Capital Employed Turnover ‐ ‐ ‐ ‐ ‐ Improved Decline INTERNET OF THINGS MARKET IN CHINA 2012.PPT 34
  • 35. Domestic Company – Company A Key Business Segments Key Geographic Segments Segment A Segment B The company operates  100% 100% through single reportable  through single reportable100% The company operates  100% segment namely, Segment B through single reportable 50% segment namely, Segment  50% A 0% 0% 2011 2011Key Recent Developments Description  News • Company A, together with its subsidiaries, provides wireline and mobile telecommunications services to  government, enterprise, and residential customers in the Peoples Republic of ChinaOverview • Company A focused on their needs and continued to improve their integrated information service  p y p g capability to actively introduce new‐generation IT applications such as IoT, integrate informatisation and  industrialisation and promote the usage of informatisation applications of various industries • In Feb 2012, the Chengdu municipal government in Sichuan province has signed an agreement with Agreement Company A to build the western China cloud computing base in Chengdu • On Mar 28, 2012, Company A and Nokia launched the Nokia 800C, the first CDMA Windows Phone in Launch China and Nokias first Lumia phone for the worlds largest smartphone market INTERNET OF THINGS MARKET IN CHINA 2012.PPT 35
  • 36. IoT market in China will witness a sharp rise owing to the investment plans by Chinese government Chinese government will promote core‐technology research, industrial chain building, and application of IoT by 20‐ Initiatives Taken by  Market Size Trends in the Market Trends in the Market Government G USD bn 200 Increase in enterprise  Chinese government planned  a11 and industry application  total investment of USD ‐bn  150 a10 leads to the growth in  x% to develop the country’s IoT  a9 9 IoT market a8 industry until 20‐ 100 a7 a6 a4 a5 a2 a3 50 a1 Integrated platforms  By 20‐, China may have x1 IoT  with the IoT concept, will  0 bring mobile devices,  technologies under the 12th  20‐ 20‐e 20‐e 20‐e 20‐e 20‐e 20‐e 20‐e 20‐e 20‐e 20‐e embedded devices  Five‐Year Plan and Internet service  platforms into the  By 20‐, x2 core R&D  mainstream  Challenges g institutions, x3 industrial  leading enterprises, x4  backbone corporations  • Lack of Unified Standards IoT technology together  and x5 small and medium  • Safety & Privacy Concerns with human behavorial  sized companies in the IoT  p pattern leads to  field are expected in province  • High Application Cost  innovative new business  models for IoT in China  A • Lack of Understanding  INTERNET OF THINGS MARKET IN CHINA 2012.PPT 36
  • 37. Appendix (1/2)Ratio Calculations Ratio Calculations (Operating  Current Assets / Current Operating Margin Current Ratio Income/Revenues)*100 Liabilities Net Margin (Net Profit / Revenues) *100 {(Cash & Bank Balance +  Cash Ratio Marketable Securities) / Current  (Income Before Tax / Revenues  Liabilities)} Profit Before Tax Margin *100  Total Liabilities / Shareholders  q y Debt to Equity  (Net Income / Shareholders  (N I / Sh h ld Equity  E itReturn on Equity (ROE)  Equity)*100  {Total Debt / (Shareholders  Debt to Capital Ratio EBIT / (Total Assets – Current  Equity + Total Debt)} Return on Capital (ROCE)  Liabilities)*100  Interest Coverage Ratio EBIT / Interest Expense (Net Income / Working Capital)  (N I / W ki C i l)Return on Working Capital *100 Fixed Asset Turnover Sales / Fixed Assets Return on Assets (Net Income / Total Assets)*100  Asset Turnover Sales / Total Assets Return on Fixed Assets (Net Income / Fixed Assets) *100  (Operating Expenses / Sales)  Current Asset Turnover  Sales / Current Assets Operating Costs (% of Sales) *100 Administration Costs (% of  (Administrative Expenses / Sales)  Working Capital Turnover Sales / Working Capital Sales) *100 Interest Costs (% of Sales) (Interest Expenses / Sales) *100  Capital Employed Turnover  Sales / Shareholders Equity  / INTERNET OF THINGS MARKET IN CHINA 2012.PPT 37
  • 38. Appendix (2/2)Key sources of information used in the report include the following: • News articles • Journals • Business intelligence databases • Industry associations I d t i ti • Government publications INTERNET OF THINGS MARKET IN CHINA 2012.PPT 38
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