The COVID-19 epidemic in the first quarter of 2020 had a major impact on the normal operation of the global economy and society, and also brought an unprecedented impact to my country’s economic development. While doing a good job in epidemic prevention, the textile machinery industry is promoting the resumption of work and production in an orderly manner. In particular, enterprises in the equipment production chain related to epidemic prevention materials have started first, making contributions to the active fight against the epidemic. However, affected by the general environment and the lack of downstream demand in the textile machinery industry and the reduction of orders, statistical data shows that the main economic indicators of the textile machinery industry showed a sharp decline in the first quarter. Textile machinery exports and imports also declined to varying degrees, and the industry’s production and operations are facing huge test.
Run quality and effect
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. The 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 was higher than that of the same period last year. It dropped 50.51 percentage points over the same period last year. Accounts receivable increased by 9.76% year-on-year, and finished product inventory increased by 8.30%.
Survey of key enterprises
Textile Machinery Association’s 2020 survey of 109 Several key textile machinery companies conducted a survey on their operating conditions in the first quarter of 2020. Judging from the summary results, in the first quarter, more than 70% of the companies’ operating income declined to varying degrees, 68.63% of the companies’ orders fell by more than 50%, the prices of textile machinery products were generally stable with some decline, and the company’s inventory increased. 60% of the companies’ orders fell by more than 50%. Enterprises believe that the main problems they face are the shortage of internal and external markets caused by the epidemic, blocked sales channels and the cancellation of original orders. In the second quarter, spinning, chemical fiber and nonwoven machinery companies believe that orders will improve compared with the first quarter, and weaving, knitting, dyeing and finishing machinery companies believe that the chain will continue to decline. Regarding the situation of the textile machinery industry in the first half of 2020, 76 % of the surveyed companies think it is not optimistic.
Import and export situation of the textile machinery industry
According to customs statistics, 2020 From January to March this year, the cumulative import and export volume of my country’s textile machinery was US$1.332 billion, a decrease of 22.58% compared with the same period last year. Among them: textile machinery imports were US$654 million, a decrease of 20.17% compared with the same period last year; exports were US$679 million, a decrease of 24.77% compared with the same period last year.
Import situation of textile machinery industry
January-March 2020 , a total of textile machinery was imported from 53 countries and regions, with a total import volume of US$654 million, a year-on-year decrease of 20.17%. The main countries and regions that import textile machinery are Japan, Germany, Italy, Taiwan, and Belgium. The trade volume of the top five importers was US$566 million, a decrease of 20.17% compared with the same period last year, accounting for 86.62% of the total imports.
In terms of imported product categories, chemical fiber machinery imports ranked first, with a total import volume of US$240 million, an increase of 11.83% compared with the same period last year, accounting for 36.77% of the total import volume. ; Except for chemical fiber machinery, the seven major categories of products all experienced varying degrees of decline. Driven by downstream demand, imports of chemical fiber machinery continued to maintain a growth trend.
01 Export situation of textile machinery industry
1-3, 2020 In March, textile machinery exports totaled US$679 million to 159 countries and regions, a decrease of 24.77% compared with the same period last year. The top five countries in terms of export value are India, Vietnam, Bangladesh, Turkey and Japan. Their combined value accounts for 51.40% of the total export value. They are the main countries and regions for my country’s textile machinery exports.
In terms of export categories, the export value of knitting machinery was US$192 million, a decrease of 24.22% compared with last year, accounting for 28.26%, ranking first, followed by printing and dyeing. Finishing machinery, auxiliary devices and spare parts, weaving machinery, spinning machinery, chemical fiber machinery and nonwoven machinery.
Situation of various sub-industries
01 Spinning machinery
Due to the sudden epidemic and the impact of downstream industries, domestic and foreign market demand for spinning machinery has been sluggish, orders have dropped significantly, and the start of business has been delayed. It can be seen from the statistical data in the first quarter of 2020 that the overall operation of spinning machinery has shown a sharp downward trend, and the sales of various mainframes and special equipment have declined to varying degrees. Among them, the decline rate of carding machines is relatively low. The main reason is that the number of exports has increased, and the increase in the import of air-jet vortex spinning equipment has correspondingly increased the demand for pre-spinning equipment. It also shows that domestic demand for air-jet vortex spinning remains hot. . According to the statistics of key enterprises from the Textile Machinery Association, in the first quarter, the sales of cotton spinning frames decreased by 60% year-on-year, the sales of rotor spinning machines decreased by 57.5% year-on-year, and the sales of draw frames, roving frames, and combing machines all decreased by more than 50%. The operating environment of the domestic downstream industry in the second quarter is expected to be�The level of imported and domestic wide-width melt-blown die heads still lags behind similar foreign products. The supply capacity of high-end melt-blown spinnerets is obviously insufficient, and relevant industry standards urgently need to be formulated and revised. According to our understanding from downstream coil finishing equipment companies, the delivery volume of spunbond, meltblown, and spunmelt composite production lines is expected to increase exponentially this year. It is conservatively estimated that there will be more than 600 production lines with a width of more than 1.6 meters. After a large number of meltblown lines are put into the market, the gap in follow-up services for user companies will gradually become apparent. How to ensure that the industry maintains stable and healthy development after the epidemic situation improves and economic life returns to normal is an important issue that all equipment companies will soon face.
Industry Situation Outlook
Affected by the new coronavirus epidemic, the global economy has suffered The International Monetary Fund predicts that the global economy will contract sharply by 3% in 2020, which is worse than the situation during the financial crisis of 2008-2009. There is considerable uncertainty in the global economic outlook. The impact of the COVID-19 epidemic on China’s economy cannot be underestimated. Currently, all regions are resuming work and production in an orderly manner on the premise of normalized epidemic prevention and control. Many textile machinery companies have responded to the needs of prevention and control and quickly carried out technological transformation and capacity expansion and production conversion and expansion. From a global perspective, the outbreak of the COVID-19 epidemic may accelerate the pace of relocation and structural adjustment of the global textile industry. In 2020, the adjustment process of the domestic textile machinery market will continue, and the recovery of the international textile machinery market will also be affected by the global epidemic. In short, except for some subdivided industries, the textile machinery industry as a whole will face an environment of insufficient domestic and foreign market demand in 2020, and the development of enterprises will face challenges.
However, overall, the fundamentals of my country’s long-term economic growth have not changed, and the impact and impact of the epidemic are phased. In terms of supporting enterprises, stabilizing employment, and expanding domestic demand, various local departments have also successively introduced a series of policies and measures, and the policies are currently being gradually implemented. Under difficult circumstances, industry enterprises must build confidence in development, plan development goals, accumulate strength, and strive to resolve the impact of various adverse factors to prepare for the gradual recovery of the industry. </p
