Textile Industry Suffers From "Back To Back" Situation

For a large number of Spin Enterprises, especially cotton spinning enterprises, spent almost a year in 2013 in anxiety and hope.

A leading enterprise of cotton yarn and knitted dyeing and finishing cloth told reporters that since the early 2013, the state will pilot cotton direct subsidy policy and began to look forward to it. "The domestic cotton price is too high under the purchase and storage policy, which is several thousand yuan different from the international cotton price, so the profits of the enterprises have been seriously compressed, and the cotton price can be returned to normal level through direct subsidy." The person in charge said.

The long waiting process was called "the darkness before dawn" by the responsible person. During this period, because of the high cost of raw materials and the high price of products, textile enterprises are faced with the situation of "continuing to suffer setbacks" and "continued internal and external demand". According to the research situation of China Cotton Textile Industry Association, in the first half of 2013, the operation rate of large enterprises was 85%~90%, about 65% of the medium-sized enterprises, and the small enterprises ceased production and production restriction further intensified, and the operating rate was only 30%. Along with the continuous increase of stock, the average turnover time of cotton yarn reached 20~30 days.

From the recent annual report and performance report of textile enterprises in 2013, the old companies who rely heavily on raw materials and primary products have been diving into a large dive. Only a net loss of Jilin chemical fiber is nearly 400 million yuan, and the losses of Chardonnay environmental protection and German cotton are also 200 million yuan and 60 million 427 thousand yuan respectively. But on the other hand, enterprises aiming at a niche market and actively developing new materials show "good scenery alone". Huafu color spinning and Jia Linjie's net profit has maintained a rapid growth with annual growth rate exceeding 120%.

In 2013, it was called "the most difficult year" in the history of textile industry. At the end of last month, a piece of news announced that the whole textile industry has been strengthened: this year's central document No.1 clearly stated that the state will officially launch a pilot subsidy program for cotton in Xinjiang.

Huafang textile senior executive told reporters when the information was difficult to conceal: "before the domestic cotton prices have been virtual high, direct subsidy means cotton prices will be liberalized, in line with the international market, the situation of enterprises will definitely be different!"

From 2010 to early 2011, the cotton market in China fluctuated greatly. Public data showed that domestic cotton prices were still less than 16000 yuan / ton at the beginning of 2010, but then it began to soar. By March 2010, cotton prices had reached 31000 yuan per ton, up nearly 100%, but then there was a continuous slump, and the scene was once chaotic.

In order to stabilize the cotton market and ensure the interests of cotton growers, the cotton purchase and storage policy was implemented in 2011, and the Chinese cotton reserve management company carried out the de market purchase of cotton, guaranteeing the domestic cotton price. On the other hand, the proportion of import quotas issued by the state to the textile enterprises is 3:1, that is to say, 1 tons of imported cotton quota should be obtained, and 3 tons of state cotton should be purchased at the same time.

But this has been on the decline for many years. Textile enterprises For example, it is just like adding insult to injury.

According to the analysis, the domestic cotton price has been maintained at the level of 20000 yuan / ton, and the purchase price of the city in 2013 was 20400 yuan per ton, much higher than the price of 15000 yuan / ton in the international market.

"The rising cost of labor and factory buildings is inevitable, though the pressure is increasing, but it can still bear. The raw material of cotton accounts for 70% of the cost of cotton spinning enterprises, which is almost the gate of business. Moreover, the products of enterprises are becoming more and more difficult to sell. The person in charge said.

Take Huafang textile as an example, its gross profit margin of textile business was lower to -5% in 2011. After that, though it has picked up after adjustment, it has remained at the trough of 1.77% in 2012 and 2.66% in 2013. The situation of German cotton shares is even more tragic. The impact of the financial crisis in 2008 has reduced its average gross profit margin from 14.97% straight in 2007 to 0.22% in 2009, and the rise in raw material prices has made a fatal blow to it. In 2011, the gross profit margin of textile business dropped to -1.63% freezing point. "At that time, the volume and price were all down, and the sales volume of products was not good. Selling was also a loss." A staff member of TAM cotton told reporters that the chief editor of the first textile network Wang Qian told reporters that through the golden age of 2001~2008, textile enterprises generally accumulated a lot of production capacity. After the financial crisis, there was an inflection point, and some of the export capacity began to turn to the domestic market. But after 2011, domestic demand growth began to slow down. "On the one hand, the price of raw materials has risen, and the profits of enterprises have been rapidly diluted. On the other hand, a large number of capacity has been accumulated in the past few years, and the demand for inventory has not been able to keep up with the release period. 2013 is the most difficult year for the textile industry, and almost all enterprises are facing difficulties. Wang went forward with emotion.

It is not difficult to understand the significance of the New Cotton Subsidy Policy to the textile enterprises. As the above mentioned Huafang textile executives said, "the era of enterprises having to buy high priced cotton is probably coming to an end, and the next spring of development is approaching." In fact, last year, the national development and Reform Commission (NDRC), Xinjiang's cotton production accounted for more than 50% of the domestic share, was the only pilot area for cotton farmers' direct subsidy policy. According to the current public information, the temporary cotton purchase and storage policy in the 2014/2015 cotton season will no longer be implemented. The provisional cotton subsidy price will be 380 yuan / mu, equivalent to about 3000 yuan per ton. At present, the relevant departments are still controversial in terms of operational details, target prices and forms of adoption.

Transformation and upgrading into a trend

Although high cost and sluggish terminal are the common problems facing the textile industry, there are still a few bright colors on this year-end transcript. 　　

Huafu color spinning is a main color spinning line business. The dyeing process is different from that of ordinary cotton fabric. Color spinning is to first dye the fibers, then to mix two or more different colors of the fibers, and finally form a unique yarn blending effect. The head of the above cotton textile industry admits to the first financial daily that from the primary spinning to dyeing, then to the fabric processing, the higher the added value of the product is, the higher the added value of the product is, and the added value will increase and the benefit will be higher than that of the ordinary textile enterprise.

In recent years, the gross profit rate of Huafu color spinning has been far higher than that of ordinary textile enterprises, which was close to 20%. In 2013, its operating income was 6 billion 240 million yuan, and its net profit also amounted to 200 million yuan, up 8.86% and 120.72% respectively. Another major effort in technology is Jialin Jie, the main camp. clothing In recent years, fabric companies have been investing more and more in research and development. With the emergence of outdoor sports and other sub fields, they have introduced high-performance functional fabrics, and gradually become suppliers of many internationally renowned brands including Nike Nike. Its net profit increased by 148.66% in the 2013 year. In sharp contrast, the traditional chemical fiber enterprise Jilin chemical fiber 000420.SZ, its huge loss of nearly 400 million yuan behind is a huge watershed of traditional polyester and new fibers, also represents the decline of traditional and primary textiles. Today, even the traditional textile enterprises, Wei Qiao textile 02698.HK and Huafang textile, are upgrading and transforming their products and technologies. For example, they are eliminating 20 or 32 primary yarns, expanding the proportion of 50 and 60 cotton fabrics that can be made into high-end fabrics. In addition, Lu Tai textile Limited by Share Ltd 000726.SZ, Jia Linjie and other enterprises simply started their own clothing brand in the lower reaches, and wrapped their fabrics to garments in their own industrial chains. But the above Huafang textile executives conceded that the advantages of large textile enterprises lie in "large quantity and variety". In the short term, it is unlikely to change the profit oriented way. "It is impossible to turn around the same way as small enterprises, or to make moderate adjustments in combination with their own advantages and market end." Li Jiajia, an analyst with Guotai Junan, believes that with the rising labor costs, China's textile production capacity will shift to Southeast Asia and other regions, but industrial transfer will create industrial upgrading rather than the demise of the industry.

"Textile industry transfers low value-added primary products to developing countries. cost The design, marketing and production of high-end products will remain in China. From the perspective of enterprises, industrial transfer will promote the transformation of textile enterprises to specialization and diversification, positioning in a niche market or multi product synergy effect. Wang also pointed out that the textile industry has begun to show obvious differentiation. With the change of the cotton policy and the different development mode of the enterprises themselves, "the dominant enterprises that focus on transformation and upgrading will get better and better, and the polarization trend of the industry will become more obvious".