Textile Enterprises In The Upper And Middle Reaches Of The Holiday Has Been More Than 40%, How Long Will It Be Difficult For Them?

China's textile and clothing exports increased by US $12.86 billion, a year-on-year decrease of US $12.86 billion, representing a decrease of US $12.86 billion compared with the same period of the previous year, with a decrease of US $12.86 billion in textile and clothing exports, a year-on-year decrease of US $12.86 billion.

Due to the long chain of cotton textile industry and the disadvantage of downstream consumption, the slow progress of industrial recovery is affected. At present, the operation of middle and upper reaches enterprises still faces many difficulties.

According to the business survey of some textile enterprises, there was a wave of short-term order boom in May, and the delivery of gauze also increased rapidly. From the perspective of the source of receiving orders, domestic orders were the main ones. However, this "upsurge" does not last long. From mid to late June, the rhythm of receiving orders gradually slows down. With the gray cloth and cotton yarn inventory rebounded again, enterprise profit promotion activities put on the agenda again. Especially from this week, we can see that Zheng cotton futures is lack of action, yarn enterprises in both the lack of order support and lack of cost promotion, the price reduction range has increased, and the range of price reduction is also expanding. In less than a week, the price of some yarn varieties has been reduced by about 500 yuan / ton, and the enterprises have a strong sense of capital preservation.

Under the situation that all parties in the market are faced with multiple pressures, whether in textile enterprises or cotton trading enterprises, some operators flexibly adjust their business modes, or switch from foreign trade to domestic sales, from general textiles to medical protective products, or from unilateral spot purchase and sale to current hedging.

Grey cloth: less orders and more holidays for enterprises

Recently, due to a small number of orders and operating losses, many grey cloth enterprises are starting to take a holiday. Due to the epidemic situation, the enterprise could not receive orders and the production task was seriously insufficient. In order to reduce the loss, the enterprise decided to take a one month holiday from August 17 to August 16, the person in charge of a weaving enterprise in Shaoxing, Zhejiang said. During the holiday period, ordinary employees only receive 1800 yuan / month basic salary, and will not be paid until one month after returning to work.

According to the person in charge, on the one hand, the enterprise is worried that the workers will not return to work after the holiday, which is the original intention of not paying wages in time; on the other hand, the enterprise can not take so much money at once.

According to the fact that there are few orders in Zhejiang Province, some enterprises have not taken holidays.

On the 16th, the person in charge of a weaving factory in Zhejiang said that they had just received an order, but after accounting for the cost, the average loss was 0.2 yuan / m. however, in order to maintain the normal production of the factory and ensure that the workers would not be lost, they had to bear the pain to take over. This year is a year of disaster. It's hard for all factories. It's helpless to accept orders at a loss or take holidays to avoid risks.

Textile companies fell sharply

Recently, a number of textile enterprises released the performance forecast for the first half of 2020: Jilin chemical fiber is expected to lose 70 million yuan to 90 million yuan, and make a profit of 70.7559 million yuan in the same period of last year, from profit to loss over the same period of last year. Huafu Fashion Co., Ltd., the world's largest supplier and manufacturer of colored yarn, is expected to have a loss of 120 million to 160 million yuan in the reporting period compared with 351 million yuan in the same period of last year. The net profit of Lutai Textile Co., Ltd. is expected to reach 120 million yuan - 160 million yuan, a decrease of 70.83% - 61.11%, compared with 411 million yuan in the same period of last year. Based on its unaudited management accounts, Weiqiao Textile Co., Ltd. expects the group's interim performance for the six months ending June 30, 2020 to be significantly lower than the same period in 2019.

So, when will orders pick up. There is a general lack of confidence in the industry. Many industries believe that in view of the current textile off-season in July, the recovery of foreign trade orders will take a long time. Today, China's foreign trade development is facing a significant increase in uncertain and unstable factors. With the impact of Sino US economic and trade frictions, the export situation in the second half of the year is still complex and grim. Textile workers should control production costs. In the post epidemic era, as long as the cash flow is constant, there is still a chance to reverse the wind.