2012 Analysis Of The Operation Of China'S Industrial Textiles Industry

2012

Under the general requirements of "steady progress", the Central Committee should adjust its development strategy and actively respond to new products, develop new markets, and strengthen internal management. In the first quarter, investment, production and sales were basically balanced and maintained a certain growth rate, and export volume and price increased, but the profitability of the industry declined.

As the price of products goes down, the break even point of enterprises is constantly shifting. Enterprises need to go through a larger production scale to ensure profits and strengthen competitive advantages. Large enterprises still have the power to expand production capacity.

The key enterprises in the industry need joint fiber and equipment enterprises to carry out industrial chain innovation, break through the key technologies in all links, and open up and occupy the market through technology and product innovation.

Operating characteristics of the first quarter

Large enterprises still have the power to expand their capacity

Domestic demand is mixed.

The continuous investment in water conservancy, pportation and environmental protection made the textiles for geotextile, filtration and separation continue to maintain a certain growth in the first quarter. The demand for sanitary textiles and safety protection textiles basically belongs to rigid demand, and the driving force for market growth is still large.

Since China's automobile and wind power industry entered the adjustment period in 2011, automobile production and sales in the first quarter decreased by 1.83% and 3.40% compared with the same period last year, and the demand slowed down. The pport enterprises of textile products were greatly affected. The wind power industry overcapacity, the demand was not strong, the structure was strengthened, the orders affected by textiles were reduced by 15% to 20%, and the artificial leather industry was blocked by the export of sports shoes, bags and clothing, the operating rate in the first quarter was only about 50%, and the demand for leather fabric was greatly reduced.

Small growth in production

A total of Enterprises above Designated Size produced in the first quarter

523 thousand tons of cloth, an increase of 24.38% over the same period, and 132 thousand tons of cord fabric, an increase of 0.38% over the same period last year.

The output of textiles for geotextiles and sanitary textiles has increased by about 10%.

Many of them are forced to cut production and price by the impact of vehicle market downturn, complex product structure and mandatory price reduction.

Downstream enterprises are cautious in placing orders, with fewer orders and more batches.

Orders are concentrated on enterprises with technology, capital and brand strength. Large enterprises are fully built and small enterprises generally have low operating rates.

Declining profitability

Industrial production value of industrial textiles above Designated Size in 1~2 months was 26 billion 600 million yuan, an increase of 22.03% over the same period last year, with a profit of 1 billion 170 million yuan, an increase of 18.4% over the same period last year. The deficit of loss making enterprises reached 190 million yuan, an increase of 46.5% over the same period last year.

Due to the increased cost of capital, interest expense in the first quarter increased by 55.8% over the same period last year.

In the first quarter, the business income of key enterprises increased by 20.2% compared with the same period last year, and the profit decreased by 3.2% compared with the same period last year.

The decline in profitability is mainly due to low demand, fierce competition in the market, continuous decline in the average price of products, high production costs and other factors.

Cautious investment in new projects

In the first quarter, the industry textile industry completed investment of 5 billion 100 million yuan, and nonwoven investment exceeded 50% of the total industry.

The number of new projects and projects under construction has declined year by year, and the expansion rate of capacity is larger than that of market demand. The industry needs a period of time to digest the rapidly increasing capacity in the past few years. Most enterprises are more cautious when facing complex external environment.

As the price of products goes down, the break even point of enterprises is constantly shifting. Enterprises need to go through a larger production scale to ensure profits and strengthen competitive advantages. Large enterprises still have the power to expand production capacity.

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Export volume and price increase

As the domestic demand market is not strong, enterprises take export as an important way to maintain growth, actively explore the international market, and China's industrial textiles have a price advantage in the international market.

Asia, the European Union and North America are the main export markets, and exports to emerging markets are growing at close to 50%.

In the first quarter, China's total exports of industrial textiles amounted to US $3 billion 790 million, up by more than 33.5% over the same period.

Price is still the main force to drive the growth of export volume.

The number of exports decreased significantly, and the rest maintained growth, such as the number of non-woven fabrics and cord fabric exports increased by 36% and 25% respectively.

Industry problems

Industrial chain collaborative innovation is urgently needed.

The gap between professional and technical personnel is large.

The employment of the industry is relatively small, the labor cost is low in the total cost, but the gap between the professional and technical personnel is large, which has affected the technological innovation of the industry.

High loan interest rates cause financial burden.

Affected by market demand, the demand for capital is not strong, but the loan interest rate is higher than the benchmark interest rate of about 20%, causing considerable financial burden to a large number of enterprises.

Tax expenditure crowding out R & D funds.

The average profit margin of enterprises is decreasing. All kinds of taxes make enterprises overburdened.

In the existing environment, even if the enterprise can survive, there is a lack of funds needed for R & D and equipment renewal.

Technological innovation capability is still insufficient.

Technical personnel and innovative ability can not meet the rapid development of the industry. The added value of products is not high. The difference between the import and export products of the nonwovens industry is nearly doubled, and there is a trend of continued expansion.

The key enterprises in the industry need joint fiber and equipment enterprises to carry out industrial chain innovation, break through the key technologies in all links, and open up and occupy the market through technology and product innovation.

Product structure needs to be optimized.

On the one hand, the low end capacity of the industry needs market digestion, excessive and homogeneous competition in the low-end market, on the other hand, a large number of high-end products still need to import at a high price.

Enterprises in the industry need to focus on areas with competitive advantages, adjust product mix and develop new markets.

Forecast in the second half year

The average profit margin of the industry will go down.

The status of industrial textiles as the key development direction of the country has not changed. Its market space is huge, and the total demand will not decrease. The whole industry is still in a period of rapid development, and the backbone enterprises are full of confidence in the development of the industry.

Some of the difficulties faced by some industries are the inevitable process of industry growth, which will promote the integration and reshuffle of industries. Large enterprises integrate resources through technology, capital and market advantages to improve the technological level and concentration level of the industry.

In 2012, competition in the industry will be more intense. Production and sales revenue will still maintain a two digit growth. However, the average profit margin of the industry will go down under the extrusion of multiple factors of product price and factor cost.