【正文】 s overall profitability. Yihua Timber has been assessed as hightech enterprise, which would contribute to its profitabilityOn March 12, 2010, Yihua Timber made an announcement that the pany has been assessed as the second batch of hightech enterprises of Guangdong Province in 2009 and the validity period was three years, which made the pany have the privilege of enjoying preferential policies for three consecutive years from 2009 to 2011. It can be taxed at a lower ine tax rate of 15% and this will be beneficial to the profitability in the next two years, resolving part of the export risks. The United States grams The leading pany of furniture chainThe United States grams is not only one of the largest furniture exporter, but also Asia39。 %NationExport amountComparative growthAmerica EUASEANJapan Canada 11Australia 2Hongkong The United Arab Emirates Accumulative import amount increased by about 50%Figure 9: Monthly import of furniture manufacturing From January to May, accumulative import amount of furniture manufacturing paratively grew by %. Unlike production amp。 Favorable Marketing ConvergenceIn the first months, sales value of furniture manufacturing was billion RMB, paratively growing by %, which was % higher than light industry during that time. Its marketing convergence was favorable, and accumulative rate of produce and sale was %, parative decreasing by %.Figure 6: Monthly amp。 in the fourth quarter of 2009, it reached to as high as . After a slight fall in the first quarter of 2010, it improved to in the second quarter, which was the highest number since 2007. The phenomenon indicates that furniture manufacturing is recovering but shaking in the short term. Production and Marketing of Furniture Manufacturing: continuing to grow Increasing by more than 20% in the first half of 2010Figure 3: Output and Growth rate of Furniture Manufacturing According to the statistics from NBS, from January to May of 2010, total national furniture production was billion pieces, parative growing by %, which was % higher than last year. Among major products, production of wooden furniture was million pieces, and parative growth was %。 American, European Union(EU), and Japan are major importing countries, whose importing quantum takes up about 57% of the whole.In the petition of world furniture market, Chinese furniture products face the direct rivalry from developed furniture manufacturing countries, like Italy, Germany, and Canada. Compared to those countries, product design and quality of Chinese furniture products exists heavy disparity, but the price of Chinese furniture is much lower.In the future international market, Chinese furniture will confront more petition from developing countries like Poland, Vietnam, Malaysia, and Mexico. Those countries not only have abundant forest resource, but enjoy the same cheap labor resource like China. In the petition of global furniture market, those countries will be powerful rivals of Chinese furniture manufacturing, by introducing foreign capital and selfdevelopment accumulation.. Domestic Market EnvironmentAccording to National Bureau of Statistics (NBS), it was preliminary calculated that GDP was billion RMB in the first half of this year, which nominally increased by % pared to that of 2009. Calculated at parable price, GDP raised by % from a year ago, % faster than that of last year. Hereinto, value added of primary industry was billion RMB, increased by %。 Rattan Furniture Manufacturing, Plastic Furniture Manufacturing and other kinds of Furniture Manufacturing. . Development ReviewIn the past few years, furniture production in China tends to develop rapidly. In 2002, the total was billion RMB, and it reached to billion RMB in 2009, the annual developing rate of which was %, far faster than the GDP development. At the same time, import and export trade shared the similar developing trend. Table 1: Development review of Chinese furniture industryYearValue ofProductionYear on year growth rate of Production ValueExport Valueyear on year growth rate of Export ValueImports Valueyear on year growth rate of Import Value（billion RMB）（%）(billion dollars)(%)（10000 dollars）（%）2002352003200420051,20061,20072,20082,20093,2010, 151,　 Furniture Manufacturing: Environmental Analysis General Political Environment(1) Taxrefund Policy: Ensuring Competitiveness of Furniture ManufacturingTo solve the negative influence of financial crisis, Chinese government has released a series of policies, aiming to support the stable development of foreign trade. From August, 2008 to June, 2009, it raised the export tax rebate rate of some modities seven times, among which tax rebate rate of furniture has rose to 15% for the previous 9%。 The words such as high and growth were widely used to describe the furniture industry in 2010, however, in the short term, the appreciation of RMB, the increase of raw material prices and trade protectionism are the main obstacle of development, so the industry of the next quarter was predicted cautiously.CatalogThe research conclusion 31. Basic Information Analysis of Furniture Manufacturing 5 Basic Knowledge of Furniture Manufacturing 5 Furniture Manufacturing: Environmental Analysis 62. Sector Economic Operation Analysis 9 Industry degree of Furniture Manufacturing: Ringing Up 9 Production and Marketing of Furniture Manufacturing: continuing to grow 10 Comparatively Rapid Growth of Furniture Import and Export 13 Comparatively Slight Growth of Exfactory Price 153. Financial Analysis of Furniture Industry 16 Analysis of the Solvency 16 Analysis of the Profitability 17 Analysis of the operation ability 18 Analysis of