Analysis Report On Textile Enterprises' Prosperity Index In The First Quarter Of 2019

Preface

In order to track the prosperity of textile enterprises in China, understand the confidence of the managers in the development of the industry and the enterprises, timely reflect the outstanding problems faced by the managers and the views on the hot issues in the industry, provide first-hand information for the government to adjust the industrial policies, take measures for the industry organizations, and adjust the production and operation strategies of the enterprises.

The thirty-sixth phase of the questionnaire was completed in April 2019. The current survey period is 2019 01~03 months. The questionnaires were distributed and recovered mainly through various professional associations of China Textile Industry Federation, relevant media and direct reporting online. The questionnaire is filled out by the corporate representative or the principal person in charge of management.

With the concerted efforts and concerted efforts of relevant departments, professional associations and supporting media of the China Federation of textile industry, the majority of enterprises have actively participated. Up to the date of the issuance of the report, a total of 217 valid questionnaires have been collected. The index analysis report is formed through data collation, statistics and comprehensive analysis. It will provide reference for relevant government departments, trade associations and business operators to grasp the new trend of industry development and adjust production and operation strategies.

04

Enterprise management decision making situation

Cost is still the first concern of enterprises.

For the main problems encountered in the production and operation of enterprises at this stage, the "cost rising too fast" is the first option, with a ratio of 31.5%, which has decreased by 8.8 percentage points compared with the previous period.

With the further development of supply side structural reform, enterprises' attention to the domestic market has been increasing. According to this issue, the proportion of enterprises with "insufficient domestic market demand" is the first problem, accounting for 19.4%, which is 7.5 percentage points higher than that of the previous period (11.9%). It is considered that the proportion of enterprises with "insufficient international market demand" is 15.3%, which is 2.3 percentage points lower than that of the previous period (17.6%).

Source: China Textile Industry Federation Industrial Economics Research Institute

Source: China Textile Industry Federation Industrial Economics Research Institute

05

Macroeconomic conditions

Judging from the current industry situation, the attitude of business managers is basically the same as that of the previous period. 29.5% of the sample enterprises believe that the overall operation of the textile industry is optimistic (up to 31.3%), and 55.3% of the enterprises believe that the operation is in general (up to 50.6%). The proportion of those who are not optimistic can be reduced by 2.9 percentage compared with the previous period.

Judging from sub sectors, the proportion of enterprises with optimistic judgement in wool spinning, industrial and chemical fiber industry is relatively high.

Source: China Textile Industry Federation Industrial Economics Research Institute

For the expectation of the overall operation of the next textile industry, the proportion of choosing the optimistic enterprises is 35.3%, and the proportion of choosing the general enterprises is 51.2%, which is higher than the actual proportion of the optimistic enterprises chosen in the current period. It shows that the enterprises are more optimistic about the overall operation of the next macro-economy.

Source: China Textile Industry Federation Industrial Economics Research Institute

For the next stage of domestic and foreign market judgement, sample enterprises are more optimistic about the expected increase of the two markets. The demand for textile and apparel market in the next period is nearly 30% higher than that in the current period. It is expected that the demand for foreign textile and garment market in the next period will be 28.8% higher than that in the current period.

Source: China Textile Industry Federation Industrial Economics Research Institute

Source: China Textile Industry Federation Industrial Economics Research Institute

06

Views of business operators on hot issues

1. industry's future investment trend

In the survey of the future investment trend of the industry in the sample enterprises, 9.7% of the enterprises indicated that the investment increased in the future, 4.6 percentage points higher than the previous survey data, and 24% of the enterprises indicated that the investment in the future industry would decline, which was 2.1 percentage points lower than the previous period.

From a sub regional perspective, enterprises in the central region believe that the proportion of investment will increase slightly, while western enterprises believe that the proportion of future investment will decline. Judging from the industry distribution, chemical fiber industry enterprises believe that the proportion of future investment increase is 33.3%.

Source: China Textile Industry Federation Industrial Economics Research Institute

2. enterprise asset liability ratio level

In the survey of the assets and liabilities ratio of the sample enterprises in the current stage, the total assets liabilities ratio below 50% accounted for 49.5%, which was 12 percentage points lower than that of the previous period (61.5%), and the assets and liabilities ratio of more than 60% accounted for 18.5% of the sample enterprises, 8.9 percentage points higher than that of the previous period (9.6%). The overall debt ratio of enterprises has increased.

According to the type of enterprises, 23.6% of large enterprises have a debt ratio of more than 60%. 63.6% of state holding enterprises have less than 50% asset liability ratio. According to different industries, the ratio of assets and liabilities of silk and knitting enterprises is higher, and the ratio of assets and liabilities ratio exceeds 60% is over 33%.

Source: China Textile Industry Federation Industrial Economics Research Institute

According to the reasons for the rise of the assets and liabilities ratio of enterprises, the increase of debt rate accounts for 41.6% of the sample enterprises, which has become the most important source of corporate liabilities. In the second place, increased liquidity loans also led to an increase in corporate liabilities, accounting for 23.9% of the sample companies. From the perspective of enterprise type, large enterprises are more concerned about the impact of medium and long-term investment increase on debt ratio. SMEs are more concerned about the increase of credit raw materials.

Source: China Textile Industry Federation Industrial Economics Research Institute