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    The First Quarter Of 2020: The New Crown Disease Continued To Impact, The Textile Industry Operation Pressure Increased Significantly.

    2020/5/9 11:04:00 0

    New CrownEpidemic SituationTextile IndustryOperationPressure

    At the beginning of 2020, the outbreak of the new coronavirus pneumonia broke out in China, followed by the global spread. The restrictive measures adopted by various countries to fight the epidemic caused the international economic and trade cycle to be blocked, and the downward pressure on China's macro-economy was significantly increased. In order to alleviate the extreme shortage of anti epidemic materials such as masks and protective clothing, the relevant textile enterprises overcame difficulties during the Spring Festival and began to resume production in succession, and strive to ensure the supply of key materials, which fully embodies the advanced manufacturing advantages of China's textile industry chain. Since the middle of 2 months, under the unified leadership of the party and the state and the joint efforts of the whole industry, the textile industry has resumed production and production in an orderly way, the supply capacity has been steadily restored, and the industrial chain has been continuously improving. However, affected by the epidemic, the market orders for textile enterprises at home and abroad decreased significantly in the first quarter, and the profit situation was seriously declining. Production and operation encountered unprecedented difficulties, and investment and development confidence were obviously insufficient. Statistics show that in the first quarter, the main operational indicators of the textile industry showed a negative growth trend, and faced a major test to maintain stable operation.

    We will actively promote the resumption of work and rehabilitation, and the production of epidemic prevention and control materials is good.

    Since the outbreak of the new crown pneumonia, faced with the shortage of key materials such as respirators and medical protective clothing, textile enterprises have overcome the difficulties of returning staff and traffic and logistics, and promoted the resumption of work and production in an orderly way. According to the survey data of China Textile Corporation, by the end of February, the proportion of key textile enterprises has reached 80%. With the continuous improvement of domestic epidemic prevention and control situation and the restoration of production and life order, the situation of textile enterprises' resumption of production and resumption of production has remained stable. By the end of March, the recovery rate of key enterprises has reached over 90%, and at the end of April, it has stabilized at around 90%. Some key textile enterprises have transformed the production of masks and protective clothing during the epidemic period, providing strong material support for the whole society.

    The textile industry started to load up gradually, but affected by the epidemic, the utilization rate of production capacity was slightly below the normal level, and the industrial added value declined compared with the same period last year. According to the National Bureau of statistics, in the first quarter, the utilization rate of textile and chemical fiber industry was 67.2% and 74.4% respectively, slightly better than that of 67.2% of the manufacturing industry in the whole country, but decreased by 10.5 and 8.8 percentage points respectively from the same period last year. In the first quarter, the added value of textile industry above designated size decreased by 16.5% compared to the same period last year, and the growth rate dropped by 21.9 percentage points over the same period last year. In the main links of the industrial chain, the industrial added value of the textile industry in the first quarter increased by 11.5% over the same period, due to the concentrated production of anti epidemic materials. Other sectors of the industrial chain production growth has slowed down significantly, of which clothing and home textiles industry is affected by the downturn in demand, the industrial added value decreased by 19.7% and 17.3% respectively, and the textile machinery industry added value decreased by 31.5% compared with the same period last year, indicating that the textile industry lacks investment confidence at this stage.

    Domestic and international market demand is obviously insufficient.

    During the period of epidemic prevention and control, closing down real estate business, home segregation and anti epidemic measures to reduce social activities led to a marked decline in domestic consumption of clothing commodities, while both online and offline sales declined. According to the National Bureau of statistics, retail sales of clothing, shoes and hats and needle textiles decreased by 32.2% in the first quarter compared with the same period last year, while online retail sales decreased by 15.1% compared with the same period last year, down 35.5 and 34.2 percentage points respectively from the same period last year.

    Due to the increasingly serious situation of overseas epidemic prevention and control, business in major export markets such as the US and Europe has been suspended and consumer demand has been sluggish. Since late March, export orders for textile enterprises in China have been sharply reduced, overseas customers have cancelled orders and delayed delivery. According to customs data, China's textile and apparel exports totaled US $47 billion 880 million in the first quarter, down 17.8% from the same period last year. Among them, the export volume of textiles was 24 billion 40 million US dollars, down 15.3% compared with the same period last year, and the clothing export volume was 23 billion 840 million US dollars, down 20.2% compared with the same period last year. Exports to traditional markets and emerging markets all showed a downward trend. In the first quarter, China's exports of textiles and clothing to the United States, Japan and the EU decreased by 29.2%, 16.8% and 14.3% compared to the same period last year, and the export volume of the countries along the belt and road decreased by 13.6% compared to the same period last year.

    Operation quality and investment showed a downward trend.

    Under the serious shortage of market demand, the income of textile enterprises has declined sharply, the cost burden is heavy, and the operating pressure has continued to rise. According to the National Bureau of statistics, in the first quarter, 33 thousand Textile Enterprises above Designated Size achieved operating income of 831 billion 880 million yuan, down 25.4% from the same period last year, and realized a total profit of 21 billion 810 million yuan, a decrease of 44.2% compared with the same period last year. The turnover rate of finished products and total assets turnover slowed by 35.5% and 28.3% respectively compared with the same period. The proportion of three expenses in finance, management and sales was 7.9%, which was significantly higher than that in normal 6%~7%.

    Due to the impact of the epidemic, the pressure of capital turnover in textile enterprises is prominent, and the scale of investment in the industry is obviously reduced. According to the data of the National Bureau of statistics, in the first quarter, the investment in fixed assets investment in the textile industry decreased by 38% compared to the same period last year. In terms of industry, investment in textile, chemical fiber and garment industries decreased by 37.1%, 45.8% and 19.2% respectively. Sub regional perspective, Eastern Jiangsu, Shandong province chemical fiber industry investment increased by 13% and 20.6% respectively, the central province of Anhui textile industry investment grew 3.1%, Western Sichuan textile industry, clothing industry and chemical fiber industry increased 91.9%, 21.4% and 45.9%, respectively, is the current industry investment scale shrinking regional highlights.

    Maintain stable and healthy development pressure

    At present, China's macro-economic operation is gradually stepping onto the right track in the prevention and control of epidemic situation, and the order of production and life is quickening and resuming. However, the situation of global epidemic prevention and control is still grim and the prospects for development are not yet clear. This makes the difficulties and challenges faced by China's textile industry increase significantly, and the pressure to maintain stable operation will still be very prominent.

    Judging from the international environment, the effectiveness of overseas epidemic prevention and control is lower than expected. The downside risks of the world economy are aggravated, and various uncertain factors are increasing. From the domestic environment, the downward pressure on the macro-economy and the phased impact of the epidemic superposed, the epidemic normalization of prevention and control task is still arduous. Under the influence of insufficient demand and poor economic circulation, a large number of textile enterprises will still be faced with difficulties such as insufficient orders, declining profits and tight capital chains. The pressure of survival of small and medium enterprises is particularly prominent, and the pressure of steady employment and steady growth of textile industry will also increase. However, the basic trend of China's economic stability and long-term improvement has not changed. The huge domestic market will continue to play the role of "ballast stone" to provide core support for the development of China's textile industry. The state has introduced a series of measures to relieve difficulties and overcome difficulties. Policies and measures have been gradually implemented and shown to be effective, which will help enterprises tide over difficulties and restore vitality. Under the impact of the epidemic, a number of backbone enterprises are determined to push forward the development of high quality, and strive to meet challenges. They will also promote the continuous optimization of the industrial structure, and develop the resilience and risk tolerance capabilities steadily.

    The whole textile industry will carry out the decision making and deployment of the Party Central Committee and the State Council, and speed up the development of key enterprises, industrial clusters and professional markets under the normal situation of epidemic prevention and control. Under difficult circumstances, we should continue to deepen structural reforms on the supply side, accelerate the transformation and upgrading of industries, and strive to resolve the adverse effects brought by the new crown pneumonia epidemic. More attention should be paid to the important role of the textile industry in guaranteeing the stability of the supply chain of the industrial chain, guaranteeing the employment of the residents, maintaining social stability and so on. We should strive to ensure that the economic operation of the industry does not fluctuate significantly, so as to fulfill the tasks of "six stability" and "six guarantees", accomplish the task of national economic development in an all-round way, achieve the goal of building a well-off society in an all-round way, and strike a decisive battle against poverty in the 2020. Make a strong goal.

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