China Textile Alliance: Puzzle 2012 Risk Crisis

According to the National Bureau of statistics data, in 2011, more than 36 thousand households nationwide were above designated size. Textile enterprises The total industrial output value reached 5 trillion and 478 billion 650 million yuan, an increase of 26.8% over the previous year, and the growth rate dropped by 4.8 percentage points compared with the first quarter. The sales value of the product was 5 trillion and 360 billion 170 million yuan, up 26.86% from the same period last year, down 4.6 percentage points compared with the first quarter. The total investment in fixed assets of over 5 million yuan in the whole industry reached 679 billion 910 million yuan, an increase of 36.3% over the same period last year, and the growth rate dropped 2.2 percentage points compared with the first quarter. Enterprises above Designated Size realized profits of 295 billion 642 million yuan, an increase of 25.94% over the previous year, down 27.63 and 15.31 percentage points respectively from the first quarter and the first half of this year. According to customs statistics, exports of textiles and clothing totaled US $254 billion 120 million in 2011, an increase of 19.9% over the same period last year, and the growth rate was 7.2 percentage points lower than that at the end of April. Of these, export prices rose by 19.3% compared to the same period last year, and the number of exports increased by only 0.5% over the same period last year.

According to the China Textile Industry Federation's tracking data on key industrial clusters, the sales revenue of enterprises under the scale increased by 6.71% over the same period of 2011, and the profit grew by 9.9% year-on-year, far below the growth level of Enterprises above designated size. The 9 garment industry cluster whose export proportion is greater than 20%, the total profit of enterprises under the scale is only 4.7%.

It is easy to see from the data that in 2011, the main indicators of the industry maintained a relatively fast growth and the operation situation was basically stable. However, all kinds of risks in the operation of the industry increased significantly compared with the previous year. The international market continued to slump, raw material prices fluctuate, production costs continued to rise, and the financing environment tightened and other factors increased the operating pressure. The main economic indicators showed a slowing down trend. The decline in export volume and industry profit growth was particularly prominent. The operation of small and micro enterprises encountered great difficulties, and these difficulties were transferred to 2012 in 2011, and the tight and severe situation will appear in the first half of 2012.

　　 2012: tight and severe in the first half of the year

Although the opening in 2012 has remained stable overall, the industry still faces a series of risks, including the shrinking international market, slowing domestic market growth and rising cost of production factors. In the first half of this year, the industry will operate in a tight and severe situation. Speeding up structural adjustment and transformation and upgrading, striving for national policy support, reducing operational risks and promoting steady economic growth are an arduous task facing the textile industry.

At the beginning of 2012, large enterprises, independent brand enterprises and domestic enterprises were able to start up to 80%-90% due to sufficient orders and abundant funds. The staff return rate was about 80% after the festival, and the turnover rate of employees was 10%-15%. Some small and medium-sized enterprises are facing more difficulties. In particular, export processing small and micro enterprises, such as reduced orders, insufficient staff, tight funds and difficult transformation, need more attention from the government and industry.

　 The industry faced major risks in the first half of 2012.

European debt crisis continues to escalate

　　 European debt crisis Continued upgrading has a significant negative impact on the international market demand. The developed countries such as the United States and Europe have sluggish economic recovery, the unemployment rate remains high, the employment structure deteriorates, and consumer confidence is sluggish, which restricts the demand for textile and clothing, implying that the growth rate of garment export in developing countries has been reduced, and the matching demand of related industry chains has slowed down. In the first half of 2012, China's textile and clothing export demand and competition pressure will be more prominent. In the first half of this year, the number of industrial exports will be low or negative.

　 The domestic market is the main market, and the growth of clothing consumption is slowing down.

In the first half of 2012, the textile industry will continue to show the main trend of the domestic market. However, with the slowdown of social investment growth, the weakening of export driven economy and the deepening adjustment of economic structure, it is expected that the growth rate of the macro-economy will be reduced, and the growth rate of consumption will be slower than that of last year, which will directly bring about a slowdown in the growth of clothing consumption.

　　 Cotton price puzzle

Domestic cotton market is very complicated. If reserve cotton is used for "cost plus profit", it will drive domestic market. Cotton price Rising domestic and foreign cotton prices continue to widen, and textile enterprises' international competitiveness will be further weakened. The price of chemical fiber is affected by cotton prices and fluctuations in international crude oil prices, which may present a concussion and increase the operational risk of downstream enterprises.

　　 The cost of employment is soaring.

The cost of labor in textile enterprises increased significantly. Sampling showed that more than 80% of enterprises were short of employment, and wages increased by more than 15%. Recruitment difficulties, unable to retain and improve the living treatment of workers, etc., have made the labor cost of enterprises showing a rigid upward trend.

　　 Small and micro enterprises financing difficulties

Small and medium-sized textile enterprises still face problems such as poor financing, high financing costs and unstable order quantity. Especially for export processing enterprises, when the appreciation of RMB is still expected, the ability to resist risks is weak. Once these enterprises are shut down too much, they will directly affect employment and social stability.

　　 Answer: the government and industry are working together.

Textile enterprises need to make greater efforts in dealing with a series of factor cost increase, such as rising labor costs, raw material prices, energy and power prices. But for the external environment such as cotton, finance, taxation, exchange rate and so on, enterprises can not digest themselves through their own efforts.

　 policy suggestion

Stabilizing domestic cotton market

At present, domestic and foreign cotton price difference is large and international cotton resources are sufficient, seize the opportunity to expand cotton imports, reduce the cost of cotton production of textile enterprises. This year, we should adopt a financial subsidy to store and store the reserve cotton.

　　 Reducing bank loan costs

In order to solve the financing difficulties and financing difficulties of textile small and medium-sized enterprises, it is recommended that regulatory authorities regulate bank floating. interest rate We should abolish the system of acceptance of bills of exchange, rectify the operation order of bank loans, and put the central government's financing policies for SMEs in place.

　　 Lighten the tax burden of enterprises

To solve the problem of "high levy and low deduction" (value-added tax 17% deduction 13%), which has long troubled cotton textile industry, and lighten the tax burden of cotton spinning enterprises. We will expand the business tax to VAT pilot and expand it to the producer services sector in the textile industry. Considering the employment contribution of labor-intensive industries, the enterprise income tax is allowed to deduct a certain proportion of wage expenditure.

　　 Implementation of supporting policies for small and medium enterprises

We should implement the support policies of the State Council to support small and medium enterprises, and accelerate the construction of industrial innovation platforms, public service systems and industrial alliances that benefit the small and medium-sized enterprises.

　　 Supporting enterprises to "go out"

Encourage superior enterprises to establish raw material bases, R & D centers and acquire brand channels abroad. The establishment of low-end production and processing enterprises abroad should strengthen macro guidance, prevent large areas from overflowing and reduce the impact on domestic employment.

　　 Industry measures

Deepening enterprise management and improving labour productivity

Facing the difficulties of "recruitment difficulty" and "labor cost", we should strengthen basic management and information application, improve labor productivity and reduce production costs.

　　 Speed up technological transformation and upgrade the advanced level of equipment

Speed up technological transformation and innovation and upgrading, including eliminating backward technology and equipment, speeding up the development of high-end textile machinery, and ensuring the share of domestic equipment. Appropriate introduction of foreign advanced equipment to speed up the digestion and absorption of new technologies and re innovation.

　　 Strengthen the development of new products and increase the added value of products.

We should strengthen R & D and industrialization of key technologies such as high simulation, functional, differential and high-tech fiber materials and industrial textiles, and develop personalized, fashionable, low carbon green textile consumer goods and increase added value.

　 Strengthening independent brand building and optimizing marketing channel construction

We should promote the development of the dominant brand enterprises at the two ends of the industrial chain and promote the matching mode of the small and medium-sized enterprises. Acquisition and integration of foreign brand enterprises, as soon as possible to brand, marketing and other high value-added links.

The use of financial instruments to resist foreign exchange market risks.

To guide enterprises to use foreign exchange market products that are constantly enriched and developed, and adopt appropriate financial instruments to avoid exchange rate risks.

　　 Increase market development and reduce trade frictions

We will continue to do well domestic trade exhibitions, actively participate in international exhibitions, and strengthen tracking, monitoring and early warning of key export markets.