Textile Industry Is Warming Up And Speeding Up. Polarization Intensifies.

After the golden period of development from 2001 to 2008, the textile industry, which has been recovering slowly after the financial crisis, is now accelerating recovery.

But at the same time, the polarization of industries is further aggravating.

According to Shanghai daily information statistics, the total ROE (net asset yield) of the A share textile and garment industry in 2013 was 7.9%, an increase of 4.3 percentage points from 3.6% in the same period last year, while the textile industry ROE increased by only 1.32 percentage points in the three quarter of last year.

As an important financial indicator to determine the profitability of listed companies, ROE's substantial improvement reflects the acceleration of the textile industry's acceleration.

From the perspective of specific companies, the 2013 annual report of Lu Tai A, the world's largest producer of color and fabric, and the leader of the color spinning and weaving industry, showed that last year's operating income reached 6 billion 478 million, an increase of 9.78% over the same period last year, and net profit of 999 million, an increase of 41.17% over the same period last year.

A said in its annual report that the increase in profitability was mainly due to the rise in the price of long staple cotton and the increase in the price of export orders. The gross margin of the company increased by nearly 4 percentage points, and the gross profit margin in the fourth quarter was increased by 7.49 percentage points.

There is no coincidence.

The leading performance of color spinning yarn, Huafu color spinning last year, was also very beautiful. The operating income and net profit were 6 billion 240 million and 200 million respectively, representing an increase of 8.86% and 120.72% respectively over the same period last year.

The company said that it mainly benefited from seizing market opportunities, and at the same time introduced new products that met market demand.

"Since the second half of last year, the entire textile industry has indeed recovered, which is mainly reflected in home textiles, clothing and fabric enterprises."

Liu Shijie, President of the Shenzhen Textile Industry Association, told reporters that the industry's recovery was mainly due to the obvious economic recovery in developed countries, the increased demand for textile and clothing, and the efforts of enterprises to increase domestic sales promotion, product research and development, vigorously develop electric business, expand sales channels, and control internal costs.

The reporter found that, in addition to the above companies, the net profits of a number of companies, such as the Oriental, Jia Linjie and Jinlong shares, doubled last year. The red bean shares, Meng Jie home textile, the home of the Hai Lan, and the Explorer were increased by 73.78%, 70.91%, 35.58% and 31.53% respectively.

At the recent spring research and summary meeting of the China Federation of textile industry, the cotton research group pointed out that through the survey conducted by the China Federation of China since February to Shandong, Henan, Hebei, Hubei, Chongqing and other places, it was found that the overall operation of the textile enterprises was stable, and most enterprises began to operate normally after the holidays, and the orders were relatively adequate and steady growth.

Polarization aggravated further

However, behind the overall prosperity, it is difficult to conceal the bitterness of some enterprises.

A listed company executive told reporters that from the industry chain, the upper and middle market capacity is relatively surplus, mainly due to the expansion of capacity in the past few years too fast.

From the overall industry perspective, despite the steady growth of the industry as well as the growth of the leading listed companies, most small and medium-sized enterprises are still struggling.

The Spring Research Report from China's cotton textile industry also shows that due to the current cotton policy and huge national storage inventory needs to digest every year, as well as rising cost, tax burden and financial pressure, some enterprises are developing more difficult, especially some small and medium-sized enterprises have a further deterioration of their living environment.

At the same time, most powerful enterprises are going out or planning to go out and invest in factories in Southeast Asia, Africa, Australia and the United States.

"China's cotton textile industry's" going out "policy is" forced "out.

Gao Yong, vice president of China Cotton Textile Industry Association, said.

"The industry has been in a weak recovery since 2008 and is still in a period of adjustment, and the polarization will continue to intensify as the adjustment continues."

First textile network editor in chief Wang Wang Qian told reporters that before 2008, the entire textile industry was basically in full profit, and after that, industry differentiation began to appear.

Wang pointed out that the current situation of the textile industry is, on the one hand, that the backbone enterprises with unique competitive advantages in a certain field or a certain area have sustained high growth. On the other hand, the "popular" textile enterprises, especially the small and medium-sized enterprises, are running worse and worse because of their lack of competitiveness and lack of market pricing power.

The textile industry situation analysis 2014 pointed out that 2014 is a year worth looking forward to in the textile industry.

From the macro economic situation, the possibility that domestic macro-economic environment will be better in 2014 will be greater. The textile industry will probably go beyond the bottom and enter the growth stage. If the overall economic environment of the world is not very good, it will be good news as long as there is no deterioration of the environment.

Therefore, it is still the theme of the textile industry in 2014 to strengthen industrial restructuring, promote industrial pformation and upgrading, and enhance the industry's ability of self innovation and sustainable development.

"The adjustment period of the textile industry will continue until 2015, and the industry will enter the upgrading period thereafter."

Wang Qianjin said.