Shandong: Rising Raw Material Prices Compressing Textile Enterprises' Profits

Recently, I learned from the Shandong Provincial Department of finance that in the first two months of this year,

According to statistics from the financial enterprise information network, the main economic indicators of Shandong textile industry increased significantly in 1-2 months, and the total income of 882 textile enterprises included in the statistics reached 47 billion 600 million yuan, up 37.7% from the same period last year. The total profit realized was 2 billion 500 million yuan, an increase of 29.7% over the previous year, 8 percentage points lower than the increase in revenue.

According to the analysis, the profit margins of textile enterprises are narrowed, mainly due to the rising prices of raw materials, the relative increase in labor costs, and the common influence of factors such as the decline in the export of some enterprises due to the appreciation of the renminbi, resulting in a decline in the level of profitability.