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    China'S Textile Industry Bottomed Out: Some Enterprises' Performance Is Up.

    2010/6/9 9:59:00 58

    Spin

    With the revival of the global economy and the rise of China's domestic consumption, China's chemical fiber and textile industry has gone through the worst period and embarked on the road of recovery.


    Recent data show that the industry has already bottomed out, and many chemical fiber and textile companies are also undergoing structural reforms, from dependence on exports to domestic demand.


    Several Chinese listed fiber traders also reported that the average selling price began to rise since the end of last year. Their performance in the first quarter of this year also showed signs of recovery.


    According to the statistics of China's National Bureau of statistics, since January last year, the cumulative annual growth rate of industrial gross output value and cumulative sales growth have begun to rise.


    From January to November last year, the net profit of China's textile industry increased by 25% compared to the same period last year, to 133 billion 150 million yuan (RMB, same below, about 27 billion 500 million new yuan).

    The total output value and sales value of the industry reached 3 trillion and 430 billion yuan and 3 trillion and 350 billion yuan respectively, increasing by 9.7% and 9.8% respectively.


    At the same time, exports also showed some recovery.

    The decline of chemical fiber and clothing exports gradually narrowed, and total exports decreased by 9.7% to 171 billion 300 million yuan last year.


    Textile companies, on the other hand, pay more attention to China's domestic market.

    Zhou Zigang, an analyst at Wei Hao research, pointed out that this structural reform combined with technological progress and innovation, if properly implemented and supported by the government, will bring the textile industry to a higher level.


    National Bureau of statistics data show that in January and February this year, the cumulative sales of consumer goods amounted to 2 trillion and 505 billion 200 million yuan, of which 110 billion 500 million yuan from the sale of chemical fiber and kimono accessories, an increase of 23.3% over the same period last year.

    Compared with the general growth rate of consumer goods, sales of chemical fiber and kimono accessories increased by 5.4 percentage points.


    Not long ago, the performance of several local chemical fiber producers also reflected the recovery of the industry.

    Li Heng Chemical fiber revenue increased 20% to 568 million 300 thousand yuan in the first quarter of this year, and net profit surged 485% to 59 million 600 thousand yuan.

    The performance above expectations is mainly due to the rise in gross margin from 12.9% to 15.9%.


    The overseas Chinese bank investment department pointed out that although the first quarter was often the off-season of the chemical fiber industry, the performance quarterly of the chemical fiber was also improved, and the revenue and core net profit increased by 3% and 49.2% respectively.


    The performance of Liheng chemical fiber shows that the average selling price has climbed by 4.8% over the previous quarter.

    Management points out that the rise in raw material prices is not the main reason, and the continued and gradual recovery of demand supports the rise in prices.


    China's high fiber first quarter revenue rose 10% to 459 million 780 thousand yuan, net profit increased 12% to 1 billion 5 million yuan.


    Wang Weiqin, chief financial officer of China high fiber group, replied to the newspaper's inquiry that the average selling price began to rise since the end of last year, and the average selling price of the group's products in the first quarter increased by 8.7% over the same period last year.

    In addition, with the revival of domestic demand, sales in the third quarter and fourth quarter of last year continued to climb.


    However, due to the seasonal relationship, China's high fiber sales declined in the first quarter of this year, a slight increase of 1% over the same period last year.


    However, Zhou Zigang pointed out that there are still several hidden troubles in the textile industry.

    The main trading partners of the United States, Europe and Japan demand increasing pressure on the appreciation of the renminbi. The appreciation of the renminbi will make China's export prices competitive.

    Trade barriers and anti-dumping laws may also cause problems.


    Chen Weixu, chief financial officer of Taishan, said that trade protectionism will not have a significant direct impact as the group's products are mainly supplied to the domestic market.


    Wang Weiqin also said that China's domestic demand for chemical fiber products is strong, and the group is mainly domestic market, and is not expected to be directly affected.

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