Since 2020, facing the severe test brought by the COVID-19 epidemic and the complex and changing domestic and international environment, my country has effectively overcome the adverse effects of the epidemic and achieved steady macroeconomic recovery. During the fight against the epidemic, the textile industry has steadily promoted the resumption of work and production, making due contributions to ensuring the production and supply of domestic epidemic prevention materials and meeting the needs of international epidemic prevention and control. Entering the second quarter, driven by the production of anti-epidemic materials and the recovery of domestic market demand, the economic operation of the textile industry has rebounded under pressure, and the declines in major operating indicators such as production, investment, and quality and efficiency have all narrowed significantly compared with the first quarter. However, the losses caused by the impact of the epidemic have not yet been fully repaired. The pressure on production and operation of textile enterprises is still outstanding. Investment and development confidence are obviously insufficient. The negative growth trend of the industry has not yet been reversed. Maintaining stable operation throughout the year faces greater challenges.
The industry boom has rebounded significantly, and production The decline steadily narrowed
In the second quarter, the prosperity of the textile industry rebounded significantly, and the level of production capacity utilization accelerated. According to survey data from the China Textile Federation and statistics from the National Bureau of Statistics, in the second quarter of 2020, the textile industry prosperity index reached 51.0, returning to the expansion range. During the same period, the capacity utilization rates of the textile industry and chemical fiber industry reached 70.3% and 77.1% respectively, an increase of 3.1 and 2.7 percentage points respectively from the first quarter, but a slowdown of 7.9 and 6.1 percentage points respectively from the same period last year.
The decline in industry production has narrowed month by month. From January to June, the added value of the textile industry above designated size fell by 6.7% year-on-year, with the growth rate 10.3 percentage points lower than the same period last year and 9.8 percentage points narrower than the first quarter of this year. Among the main links in the industrial chain, the industrial textile industry’s industrial added value increased significantly by 57.8% year-on-year, driven by the production of epidemic prevention materials, which is the main driving force for the steady recovery of production growth in the entire industry. Affected by shrinking demand, production in the clothing, home textiles and textile equipment manufacturing industries at the end of the industrial chain is still declining. From January to June, industrial added value decreased by 12.2%, 8.5% and 17.6% year-on-year respectively.
The output of major categories of products has generally declined. Data from the National Bureau of Statistics shows that from January to June, the output of chemical fiber, yarn, cloth and clothing of enterprises above designated size decreased by 1.0%, 15.8%, 25.9% and 13.7% respectively year-on-year, and the growth rates were lower than the 13.0, 15.5 and 25.8% growth rates in the same period last year. and 12.6 percentage points. The output of non-woven fabrics achieved growth, with a year-on-year increase of 6.6% from January to June.
The domestic demand market continues to recover, and the export growth rate turns from negative to positive
Since the second quarter, as residents have relaxed their travel and consumption activities, the domestic demand market for textiles and clothing has gradually recovered. According to data from the National Bureau of Statistics, in the first half of 2020, the national retail sales of clothing, shoes, hats, and knitted textiles above designated size decreased by 19.6% year-on-year, and the decline narrowed by 12.6 percentage points compared with the first quarter. A series of national policies such as “protecting people’s livelihood” and “promoting consumption” have promoted the accelerated recovery of online consumption. In June, the national online retail sales of clothing products have basically returned to the same period last year. The cumulative retail sales from January to June decreased by 2.9% year-on-year. The decline narrowed by 12.2 percentage points from the first quarter.
Export pressure has eased. According to Chinese customs data, in the first half of the year, my country’s textile and apparel exports amounted to US$130.8 billion, a year-on-year increase of 1.9%, marking the first time since 2020 that the export growth rate has turned from negative to positive. Due to the severe situation of international epidemic prevention and control, my country’s export of masks and other anti-epidemic materials to Europe, the United States and other countries has expanded. From January to June, the value of textile exports increased significantly by 24.8% year-on-year, reaching 77.16 billion US dollars, accounting for 59% of the total textile and clothing exports. . The pressure on apparel exports remains prominent, with exports from January to June reaching US$53.64 billion, a year-on-year decrease of 19.4%. The export market of the textile industry has become differentiated. Exports to the three major traditional markets of the United States, Japan and the European Union have improved significantly. From January to June, the export value of textiles and clothing increased by 4.2%, 15.1% and 41.1% respectively year-on-year. The growth rate increased by 4.9% compared with the same period last year. , 19.8 and 45.3 percentage points; due to sluggish consumption in the international terminal market and reduced demand for intermediate products in the industrial chain in emerging export markets such as Southeast Asia and Africa, the value of my country’s textile and apparel exports to countries along the “Belt and Road” fell by 12.2% year-on-year from January to June.
The pressure to improve quality and efficiency is still great, and investment has dropped significantly Narrowed
Data from the National Bureau of Statistics show that in the first half of the year, the country’s 33,000 textile enterprises above designated size achieved a cumulative operating income of 1.92607 billion yuan, a year-on-year decrease of 16.4%, and the decline was greater than that in the first quarter. Narrowed by 9 percentage points; the total profit reached 73.1 billion yuan, a year-on-year decrease of 19%, and the decline narrowed by 25.2 percentage points compared with the first quarter. The operating income profit margin of enterprises above designated size was 3.8%, an increase of 1.2 percentage points from the first quarter. The profitability of the industrial and home textile industries has continued to improve. Total profits from January to June increased by 216.3% and 4.1% year-on-year respectively, which is at a relatively high level in the entire industry chain; affected by factors such as raw material price fluctuations, light market transactions, price reductions to seize orders, etc. , the efficiency of the chemical fiber and cotton spinning industries declined significantly, with total profits falling by 41.9% and 41.3% respectively year-on-year. Due to the significant increase in operating pressure, the operating quality of textile enterprises has declined. From January to June, the loss rate of textile enterprises above designated size in the country reached 32.6%, and the losses of loss-making enterprises increased by 50.2% year-on-year; the total asset turnover rate and finished product turnover rate were respectively 1 time/year and 10.6 times/year, a year-on-year slowdown of 19.9% and 25% respectively; the proportion of three fees was 7.3%, an increase of 0.3 percentage points from the same period last year.
Affected by the epidemic, textile enterprises have obviously lacked confidence in development, and the scale of investment in the entire industry chain has shown a downward trend. According to the nationalAccording to statistics from the Bureau of Statistics, from January to June 2020, the completion of fixed asset investment in the textile industry decreased by 27.3% year-on-year, and the growth rate slowed down significantly by 26 percentage points from the same period last year, but it rebounded by 10.8 percentage points from the first quarter. Among them, the investment in the textile industry, chemical fiber industry and clothing industry decreased by 22.4%, 16.9% and 37.9% respectively year-on-year, and the growth rate was 22.1, 6.3 and 38.7 percentage points lower than the same period last year. In terms of regions, investment growth in the central and western regions is weak. Investment in the garment industry in Hubei, Anhui and Henan provinces dropped significantly by 64.6%, 45.5% and 31% respectively year-on-year from January to June. Investment in the eastern region was somewhat differentiated, with Zhejiang Province from January to June. Monthly investment in the garment industry and chemical fiber industry increased by 11.4% and 18.5% respectively year-on-year. However, during the same period, investment in the garment industry in Jiangsu, Shandong and Guangdong provinces fell by 63.0%, 49.7% and 79.9% year-on-year.
Positive factors continue to accumulate, and the pressure to maintain stable operation is still relatively high. In the first half of the year, the textile industry focused on resolving the adverse effects of the epidemic and continuously improved its development resilience and anti-risk capabilities, and some economic performance indicators showed signs of recovery. However, the current global epidemic is still spreading, and the outlook is highly uncertain. The impact on the operation of global supply chains and economic operations will continue to evolve. In the second half of the year, the textile industry will still face many external risks and challenges, and the pressure to maintain stable operation throughout the year will still be great.
Under the difficult situation, there are still positive factors for the textile industry to achieve a steady recovery. The steady recovery of my country’s macro-economy has demonstrated its strong resilience in dealing with the impact of the epidemic, and its advantages in complete industrial systems, improved infrastructure and strong domestic demand markets are even more prominent. During the epidemic, continuous innovation in manufacturing models, industrial chain operation models, and business formats promoted the steady recovery of production and the improvement of the consumer market, providing a new foothold for the steady recovery of various industries. On the other hand, the various macro-policy effects introduced by the state to help companies bail out, protect employment, and protect basic people’s livelihood will continue to exert their force, providing an important guarantee for gradually smoothing the economic cycle and promoting the economy to return to normal track.
The textile industry will implement the decisions and arrangements of the Party Central Committee and the State Council, fully recognize the extensiveness, complexity and persistence of the impact of the epidemic, continue to deepen supply-side structural reforms, and accelerate the promotion of Industry transformation and upgrading, continue to play the important role of the textile industry in ensuring the stability of the industrial chain and supply chain, ensuring residents’ employment, maintaining social stability, etc., strive to overcome the pressure of downward risks, maintain basically stable economic operations, and implement the “six stability” work , the “six guarantees” task, fully completing the national economic development tasks in 2020, achieving the decisive victory in building a moderately prosperous society in all respects, and making due contributions to the decisive battle against poverty. </p