Currently, my country’s macroeconomic operations are gradually getting on the right track amid normalized epidemic prevention and control, and social production and living order are also in the process of accelerating recovery. However, as the global epidemic prevention and control situation remains severe and the development prospects are still unclear, this has also significantly increased the difficulties and challenges faced by the development of my country’s textile industry, and the pressure to maintain smooth operation will remain very prominent.
Affected by the epidemic, my country’s textile enterprises saw a significant decrease in domestic and foreign market orders in the first quarter, and their profits declined severely. , production and operation have encountered unprecedented difficulties, and confidence in investment and development is obviously lacking. The proportion of three expenses for enterprises is as high as 7.9%, which is significantly higher than the normal level. The proportion of three expenses for home textiles, clothing and textile machinery industries has reached more than 10%.
With the poor economic performance of textile enterprises, the textile machinery industry has also been greatly affected. According to statistics from the National Bureau of Statistics, from January to March 2020, 635 textile machinery enterprises above designated size achieved operating income of 12.211 billion yuan, a decrease of 38.90% compared with the same period last year, and the growth rate decreased by 36.63 percentage points compared with the same period last year. Total assets were 95.899 billion yuan, an increase of 9.79% compared with the same period last year. Severely impacted by the global spread of the epidemic, industry operating income declined significantly in the first quarter. The total realized profit was 402 million yuan, a decrease of 67.34% compared with the same period last year, and the operating income profit margin was 3.30%, a decrease of 2.80 percentage points compared with the same period last year. The loss of loss-making enterprises was 317 million yuan, an increase of 163.71% compared with the same period last year; the loss area was 41.10%, an increase of 1.59 percentage points compared with the same period last year.
Loss in March decreased by 6.62% compared with February. As enterprises gradually resume work and production, industry operations are also gradually recovering. From January to March 2020, the total cost of textile machinery enterprises above designated size was 11.591 billion yuan, a decrease of 36.82% compared with the same period last year, and the growth rate decreased by 50.51 percentage points compared with the same period last year. Accounts receivable increased by 9.76% year-on-year, and finished product inventory increased by 8.30%.
Seize new market opportunities with changes
From the perspective of the international environment, the effectiveness of overseas epidemic prevention and control is lower than expected, the downside risks of the world economy are intensifying, various instability and uncertainty factors have increased significantly, and the continued sluggish overseas demand has put particularly significant pressure on the export situation. From the perspective of the domestic environment, the downward pressure on the macro economy and the periodic impact brought by the epidemic are superimposed, and the task of normalized prevention and control of the epidemic remains arduous. Affected by factors such as insufficient demand and poor economic circulation, a large number of textile companies are still facing difficulties such as insufficient orders, declining profits, and tight capital chains. The survival pressure of small, medium and micro enterprises is particularly prominent, and the pressure on the textile industry to stabilize employment and growth has also increased. big.
When the overall demand is not satisfactory, textile machinery companies actively take different measures to deal with these difficulties and development bottlenecks based on their own characteristics. For example, Universal Group launched a special discount on accessories to “fight the epidemic, help resume production, and send warmth” to work with customers to tide over the difficulties. Wuxi Hongyuan Company relies on its own import and export platform to strengthen its connection with original customers, help users solve possible problems during the epidemic, eliminate their concerns, and strive to stabilize the market. At the same time, we will also take advantage of possible new market opportunities brought by the epidemic to accelerate the market development of new industries and new products.
White Shark Card Clothing adjusts the production sequence of products in a timely manner, formulates emergency product supporting plans, seeks the best transportation route, and strives to meet customer production needs through self-digestion and increased costs; at the same time , while taking measures to prevent and control the epidemic, the company also held special activities for marketing personnel to learn skills, practice hard skills, and strive to become chief employees. The company used the relatively concentrated and free time of sales personnel to conduct all-round employee training and practice well. Internal strength.
Some textile machinery companies responded to the national call, shouldered the heavy burden of central enterprises, and actively ensured supply; some other companies converted production according to the market situation to adapt to changes and break through the production difficulties of the companies. while realizing their own social responsibilities. For example, under the strong leadership of the State-owned Assets Supervision and Administration Commission of the State Council, SINOMACH, and Hengtian Group, Jingwei Textile Machinery Co., Ltd. has bravely shouldered the important task of being the main force in the scientific and technological “war against the epidemic” and assumed the responsibility for the urgent equipment for epidemic prevention and control – N95 masks. Machinery technology research and production capacity breakthrough tasks. Suzhou Huilong Textile Machinery has increased its resource investment, continued to focus on improving production technology and production efficiency, rapidly increased production capacity, and contributed to the country’s production of more and more advanced mask ear loop machine equipment. For another example, Wuxi Soho Textile Machinery produces on-line mask sterilization and disinfection equipment to facilitate the application of mask disinfection and sterilization.
Transformation and upgrading to seize the main line of intelligent development
Although the current development is facing many problems, the basic trend of my country’s economic stability and long-term improvement has not changed. The huge domestic market will continue to play the role of “ballast” and provide core support for the development of my country’s textile industry. . The state has introduced a series of measures to alleviate difficulties, and the policies and measures are gradually implemented and showing results, which will help enterprises overcome difficulties and regain their vitality. Under the impact of the epidemic, a group of advantageous key enterprises have firmly promoted high-quality…�The determination of development and multi-party efforts to cope with challenges will also promote the continuous optimization of industrial structure and the steady improvement of development resilience and risk resistance capabilities. In the long term, the fundamentals of our country’s economy are still stable, and the development of the industry is still resilient. It is even more necessary to work hard to improve product quality and development capabilities, enhance international competitiveness, and ensure that the industry moves forward steadily.
We can find that during this epidemic, some industries have been greatly affected, and emerging industries such as intelligent manufacturing, unmanned distribution, online consumption, and medical health have shown strong performance. Growth potential. The China Textile and Apparel Federation’s resumption of work and production survey report also shows that textile companies with a higher degree of automation and intelligence will be far less affected than companies with a lower degree of intelligence.
In early March, the China Intelligent Manufacturing System Solution Suppliers Alliance, under the guidance of the Equipment Industry Department of the Ministry of Industry and Information Technology, issued the “On Fully Unleashing the Potential of Intelligent Manufacturing” Initiative for Epidemic Prevention and Control to Promote Resumption of Work and Production”, which calls on smart manufacturing-related enterprises to work together to actively respond to calls from governments at all levels and fully unleash the potential of smart manufacturing in promoting epidemic prevention and control, resumption of work and production, and industrial upgrading. This also shows that intelligent development is still the main trend and innovation direction of the industry’s future development. Accelerating the improvement of the industry’s intelligent production level after the epidemic is still an unavoidable focus and topic.
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