Overall Report Of 2018 Textile Machinery Industry: Good Quality And Slow Growth.

Supported by the overall smooth operation of China's macro-economy and the textile industry, the upgrading of the 2018 textile machinery industry has been further promoted. The overall operation has achieved good results and maintained a growth trend. The main business revenue and export market still maintained a two digit growth, but the growth rate of the business operation has slowed down since the three quarter.

Summary of the situation in 2018

Industry scale

In the first three quarters of 2018, the textile machinery industry realized its main business income of 77 billion 634 million yuan, an increase of 12.11% over the same period last year. The growth rate dropped by 0.82 percentage points from the same period last year, slowing down 3.91 percentage points compared with the first half of this year. The total assets amounted to 101 billion 913 million yuan, up 8.39% over the same period last year, a decrease of 0.80 percentage points over the same period last year.

Profitability

In the first three quarters of 2018, the total profit of textile machinery industry was 5 billion 335 million yuan, an increase of 9.44% over the same period last year. The growth rate slowed down 10.12 percentage points compared with the first half of the year, and the deficit of loss making enterprises was 263 million 800 thousand yuan, down 17.70% compared with the same period last year, with a deficit of 15.11%.

Textile machinery industry main business income margin 8.20%, an increase of 1.05 percentage points over the same period last year.

Foreign trade

According to customs statistics, the total import and export of textile machinery in China in the first three quarters of 2018 totaled US $5 billion 531 million, up 12.70% over the same period last year.

Among them: export of textile machinery was US $2 billion 780 million, an increase of 16.96% over the same period, and imports of US $2 billion 751 million, an increase of 8.70% over the same period last year.

Export growth is larger than import growth, and textile machinery industry has been surplus since February.

Import situation

The top five countries in the first three quarters were Germany, Japan, Italy, China, Taiwan and Belgium.

Among them, the sum of Germany increased by 27.06%, Japan increased by 3.72%, and the rest declined in different ranges.

Imports of large categories of products, the first three quarters of chemical fiber machinery, weaving machinery, nonwoven machinery, auxiliary devices and spare parts imports grew, spinning machinery, knitting machinery, printing and dyeing finishing machinery decreased compared with the same period.

The biggest increase is chemical fiber machinery.

The spinning machinery imported from China mainly comes from Germany, Japan and Italy. The amount and proportion of the spinning machinery are: Germany 222 million US dollars (47%), Japan 97 million US dollars (21%), Italy 94 million US dollars (20%).

The top three importers of weaving machinery in China are Japan, Belgium and Germany. The amount and proportion are: Japan 157 million US dollars (46%), Belgium 96 million US dollars (28%), Germany 35 million US dollars (10%).

The top three knitting machines imported from China are Japan, Germany and Italy. The amount and proportion are: Japan 105 million US dollars (43%), Germany 85 million US dollars (35%), Italy 42 million US dollars (17%).

In the first three quarters, China imported chemical fiber machinery mainly from Japan and Germany. The amount of imported chemical fiber machinery in Germany amounted to 295 million US dollars, accounting for 56%. The amount of imported chemical fiber machinery imported from Germany amounted to 214 million US dollars, which accounted for 40%. China's imports of non-woven machinery mainly came from Germany and France, and the sum and proportion of Germany's imports were 42 million US dollars (59%) and 11 million U.S. dollars (16%) respectively.

The import and export of machinery for dyeing and finishing is mainly from China's Taiwan, Italy and Germany. The amount and proportion are 84 million US dollars (31%) in China's Taiwan, 67 million US dollars in Italy (24%) and 53 million US dollars in Germany (20%).

In the first three quarters of 2018, 29 provinces and autonomous regions in the country had different amounts of imports. The top five ranked Jiangsu, Zhejiang, Guangdong, Shanghai and Xinjiang. In addition to the decrease in the import volume of Guangdong Province, the rest increased, and the gains of Zhejiang and Xinjiang were outstanding.

Export situation

In the export market, India, Vietnam, Bangladesh, Indonesia and Turkey ranked the top five respectively.

In the top five export markets, except for India, the rest achieved growth, of which Turkey increased by 93.02%, Vietnam increased by 52.94%, Indonesia increased by 29.61%, Bangladesh increased by 15.17%.

In the first three quarters of 2018, the top five of textile machinery export ranked Jiangsu, Zhejiang, Shanghai, Guangdong and Shandong, of which Shandong and Jiangsu were the most prominent.

The countries and regions along the belt and road are the main markets for China's textile machinery exports.

In the first three quarters of 2018, China accounted for 72.56% of the total exports of textile machinery in the same area, with an export value of US $2 billion 17 million, an increase of 18.35% over the same period last year.

Among the main export markets, ASEAN, Central Asia and Western Asia increased the most.

With the accelerated pace of industrial pfer in the textile industry, the demand for textile equipment along the route has been further released.

* problems

At present, most enterprises are facing many problems in production. The main problems are the sharp fluctuations in raw material prices, disorder and bad competition, and difficulties in recruitment and inadequate employment.

In addition, the lack of domestic market demand, intellectual property rights, inflation driven costs, trade friction, pressure on energy saving and emission reduction, and financing difficulties are also common problems faced by enterprise development.

Survey on the operation of key enterprises

Enterprise orders in the first three quarters of 2018

In the first three quarters of 2018, more than half of the enterprises' orders increased by a different margin. The total number of enterprises whose orders increased by more than 10% reached 37.40%, 25.75% of the enterprises increased by less than 10%, 26.02% of the enterprises' orders were flat last year, and the enterprises whose orders were reduced accounted for 10.84%.

The growth rate of enterprises whose foreign orders 26.33% grew by more than 10%24.26% was less than 10%, while 37.87% of the enterprises were flat compared with the same period last year, accounting for 7.99% and 3.55% of the enterprises with a reduction of 10% or less than 10%.

Average factory price of main products

In the first three quarters of 2018, enterprises accounted for 17.86% of the sales prices of major products, which increased by more than 5% over the same period last year. 22.25% of the enterprises' main product prices increased by 5%, 41.48% of the enterprises' prices were flat compared with the same period last year, and about 35% of the knitting enterprises indicated that the factory price had been lowered.

In the first three quarters of 2018, the number of enterprises' stock increased or even reached 80.94%, of which 31% of the printing and dyeing finishing enterprises chose to increase their inventories.

On the whole, enterprises with an increase of more than 10% and 10.50% of inventories grew by 10%, accounting for 15.75%. 54.70% of the enterprises' stocks were flat compared with the same period last year, accounting for 14.92% of the enterprises less than 10%, and 4.14% of enterprises with a reduction of more than 10%.

Since the third quarter, some products have been postponed due to downstream users.

Utilization ratio of enterprise equipment

In the first three quarters of 2018, enterprises accounted for more than 80% of equipment utilization in the surveyed enterprises accounted for 60.11%, 33.62% of the enterprises were in the 50%~80% utilization rate, and 5.98% of the enterprises were less than 50% of the equipment utilization. Overall, the utilization ratio of large and medium enterprises was better than that of small and micro enterprises.

The utilization rate of equipment decreased compared with the first half of the year.

Enterprise investment situation

In 2018, 19.65% of textile machinery enterprises increased domestic investment and 4.62% of enterprises increased overseas investment.

In 2019, 8.01% of enterprises had plans to increase overseas investment, and 24.93% of enterprises had plans to increase overseas investment.

2019 situation outlook

In 2017, the sales of main textile machinery in China and the world increased significantly. According to the statistics of the global textile machinery shipment by ITMF (International Federation of textile manufacturers), the cotton spinning frame increased by 21%, the rotor spinning increased by 24%, the loom machine increased by 23%, the shuttleless loom increased by 13%, the computerized flat knitting machine increased by 44%, the circular machine was flat, and the air flow, overflow dyeing machine, silk yarn and singeing line increased in the printing and dyeing equipment.

Since 2018, the market performance of textile machinery segments has been different.

Most of the products in spinning machinery have been slowing down, weaving machinery has maintained a high growth trend in the first half of the year. Since the third quarter, the market has slowed down, the sales of main products of knitting machinery have slowed down in the third quarter, printing and dyeing and finishing machinery has maintained a high degree of prosperity, and the chemical fiber machinery has increased significantly in the first three quarters, but the new orders in the four quarter will slow down.

Despite the division of market segments, the concentration of various industries has been improved, and the market share of dominant enterprises has been further enhanced.

From the operational data, the textile machinery industry has achieved steady growth in the first three quarters of 2018, but the growth rate has slowed down. The textile machinery industry in 2018 is expected to maintain a certain level of growth.

Looking forward to 2019, although the world's major economic organizations have lowered their economic growth rate, the world economy is still on the recovery track, and the demand for the international market is basically stable. The downward pressure on China's national economy continues to strengthen, but the trend of steady development will not change.

Generally speaking, the domestic and foreign market environment of China's textile industry is still basically stable, but the external demand is facing more uncertainties and various risk factors have increased.

Policy aspects

In 2019, the business environment of China's textile machinery enterprises will be improved. General Secretary General's speech at the Symposium of private enterprises clearly affirmed the status of private enterprises, and made clear the six aspects of policies and measures.

Recently, relevant departments of the state have also issued a number of support policies for private enterprises, hoping to ease the general problems faced by enterprises.

Market aspects

The domestic market pressure of textile machinery industry has increased, but the main line of upgrading and pformation of textile industry surrounding the reduction of efficiency, energy conservation and environmental protection is still unchanged. The application of Intelligent Manufacturing in China's textile industry will be further promoted, and the automation and intellectualization equipment such as the Internet of things, big data and cloud will further expand the market space.

With the quickening of the global pfer of textile and garment industry, the development of textile and garment industry in South Asia, Southeast Asia, Central Asia and Africa is speeding up, and the foreign market of textile machinery is still expected to maintain relatively stable development.

In the face of the challenge of overall slowdown, spinning machinery enterprises must actively accelerate structural adjustment and technological innovation and steady operation to deal with market fluctuations, and work together to promote the high quality development of China's textile machinery industry.