What Is a Capital Intensity Ratio?

Investment intensity, that is, the amount of investment in fixed assets (including plant, equipment, and land prices) divided by land area, is an important criterion for measuring land utilization in development zones. There is a certain relationship between investment intensity, total investment and registered capital, and there is a certain logical relationship between the former two.

Investment intensity

In accordance with the spirit of the "Decision of the State Council on Deepening the Reform and Strict Land Management", the Ministry of Land and Resources has successively issued supporting regulations such as the "Administrative Measures for the Annual Utilization of Land Use Plans" and "Control Indicators for Land Use in Industrial Projects", covering the entire process of approval of construction land Very comprehensive and very specific. Among them, "Industrial Project Construction Land Control Index" calculates the amount of land available on the basis of four indicators: investment intensity, floor area ratio, building factor, and the proportion of land used by administrative offices and living services facilities, which is combined with previous regulations to highlight It is practical and instructive. The calculation of investment intensity is based on the amount of investment, and the "Indicator of Land Control for Construction of Industrial Projects" does not define the content of the amount of investment. The author believes that the investment amount can have two meanings: the first meaning is registered capital, that is, the total assets of an enterprise with independent legal personality. According to the "Company Law", if the registered capital is registered by the administrative department of industry and commerce, the registered capital is the sum of the capital contributions paid by all shareholders. Shareholders' investment methods are not limited to monetary contributions, but may also be contributed by non-monetary assets such as physical objects, industrial property rights, non-patent technology, and land use rights. In other words, the registered capital includes monetary funds and non-monetary assets. The second meaning is monetary funds, that is, the total funds to be invested in the project, including cash, bank deposits and other monetary funds.

The author believes that it is unreasonable to simply use registered capital or monetary funds as the basis for calculating investment intensity. A more reasonable approach is to use the registered capital as the basis for calculating the investment intensity for a land application unit with independent legal personality; The land application unit with independent legal person qualification requires the land use unit to set up a special infrastructure account in the name of the construction project to be applied for, verified by a certified public accountant and issued a capital verification report, and the investment intensity is calculated based on the total funds determined in the capital verification report. The above is my personal opinion, and I am willing to discuss with colleagues.