Industry Data: Development Report Of Textile And Garment Industry Listed Companies In Shanghai And Shenzhen Stock Exchanges In 2020

Yu Yizheng, China Textile Planning Research Association

2020 is an important historical period for China to upgrade its industrial structure, change its economic structure and change its development mode. In this year, the external environment has also undergone profound changes: the strategic game between China and the United States has reached an unprecedented intensity, the new crown epidemic is rampant, there are countless deaths and injuries, and the global division and social tearing are extremely fierce.

China's textile industry, as a traditional pillar industry of the national economy and an industry deeply integrated with the global industrial chain, has shown strong resilience in the face of unprecedented environmental test and development pressure. He has made outstanding contributions in fighting epidemic situation, stabilizing employment, protecting people's livelihood and promoting development. Among them, all kinds of Listed Companies in the textile and clothing industry have taken the initiative and persisted in innovation in the face of the unprecedented huge test of the market volatility and the new normal of industry development. In accordance with the requirements of the state to resume economic development as soon as possible and to provide anti epidemic prevention and control materials urgently, the task of returning to work and production has been fully promoted and completed. Many listed textile companies have also made urgent arrangements to invest in new (expanded) production capacity of textile protective articles according to the needs of the anti epidemic front line. It has made important contributions in accelerating the promotion of endogenous development power, leading the innovation and development of the whole industry and maintaining the smooth operation of the textile economy, and fully demonstrates the responsibility and ability support of the industry leaders.

According to the statistical data of annual reports of listed companies, the development of 192 listed companies mainly engaged in textile and garment industry (hereinafter referred to as "Textile Listed Companies") in Shanghai and Shenzhen stock exchanges in 2020 is as follows:

I. number of textile listed companies

1. According to incomplete statistics, by the end of 2020, there were about 192 listed companies mainly engaged in textile and garment industry in Shanghai and Shenzhen stock markets. Compared with the 176 listed companies in the previous year, the newly added part mainly includes 18 new listed companies in IPO of this year and 2 companies eliminated due to the change of main business.

2. The number of 192 Textile Listed Companies in Shanghai and Shenzhen stock markets accounted for 4.65%, which was 0.06 percentage point lower than that at the end of 2019.

3. Among 192 textile listed companies, 88 are listed on the main board and 2 are on the science and technology innovation board; There were 73 main board companies and 29 GEM companies (accounting for 45.83%, 1.04% and 38.02% and 15.10% respectively). As shown in Figure 1:

Figure 1

2. Number of employees of textile listed companies

According to statistics, by the end of 2020, the total number of employees in textile listed companies was 824100, a decrease of 4.61% compared with the previous year. With the adjustment and upgrading of the national economic and industrial structure in recent years, as well as the influence of multiple factors such as high labor cost and intelligent equipment replacing manual operation, the number of employees in textile listed companies has continued to decrease. The relevant statistical data show that the number of employees in textile listed companies has decreased by 64200 in recent three years, and the decreasing trend is obvious year by year. As shown in Figure 2 below:

Figure 2

3. Market value of listed textile companies

1. By the end of 2020, the total market value of Textile Listed Companies in Shanghai and Shenzhen stock markets was about 1965.878 billion yuan, which was 40.67% higher than that at the end of 2019, and the (annual) growth rate was increased by 11.19%. Among them, Hengli Petrochemical (600346. SH), Rongsheng Petrochemical (002493. SZ) and Dongfang Yuhong (002271. SZ) ranked the top three with 1968.84 billion yuan, 186.377 billion yuan and 911.48 billion yuan respectively.

2. From the perspective of market value distribution, 42 listed companies have a market value of over 10 billion, accounting for 21.19%. The market value distribution of textile listed companies at the end of 2019 and 2020 is shown in Figure 3

Figure 3

3. From the market value statistics of five major textile sub industries, namely chemical fiber manufacturing, clothing and apparel, textile machinery, industrial textiles and household textiles, the market value of chemical fiber manufacturing sector increased by 75.66% in 2020, accounting for 38.07% of the total textile and garment sector (an increase of 7.58% over the previous year); The market value of industrial textiles increased by 104.73%, accounting for 19.42% of the total textile and clothing sector (6.08 percentage points higher than that of the previous year, and increased from the third to the second in 2019); The market value of clothing and apparel sector increased by 5.99%, accounting for 16.59% of the total textile and clothing sector (5.42 percentage points lower than that of the previous year, falling from the second to the third in 2019); Textile machinery and household textiles accounted for 4.50% and 2.39% of the total textile and clothing sector, respectively, and their market share in the five sub industries declined (0.84% and 0.31% respectively compared with the previous year). As shown in Figure 4

Figure 4

4、 IPO and new listing

1. Since 2017, under the guidance and full promotion of China Textile Industry Federation, the investment and financing work of textile and garment industry has been further strengthened, the industry and finance cooperation, capital operation ability of textile and garment enterprises have been continuously improved, and the financing channels have been continuously developed.

According to relevant statistics, there will be 18 new stocks of textile and clothing listed in 2020, accounting for 4.55% of the annual IPO companies in Shanghai and Shenzhen stock markets. The number of IPO listing and the scale of fund-raising of textile and garment enterprises have increased rapidly, which is the fastest growth in the past two decades.

2. In 2020, the initial IPO of textile and garment industry in Shanghai and Shenzhen stock markets raised 19.6 billion yuan, accounting for 4.15% of the total amount of A-share IPO (2.18 percentage points higher than 1.97% of the previous year).

3. From the perspective of subdivision of professional fields, the listed fund-raising enterprises of textile and clothing in this year are mainly chemical fiber manufacturing, industrial textiles and clothing. Among them, chemical fiber manufacturing enterprises accounted for 33.33%, industrial textile enterprises accounted for 27.78%, and clothing enterprises accounted for 22.22%. The number of listed enterprises in these three professional fields accounted for 83.33% of the total newly listed textile and garment enterprises.

The professional classification of 18 newly listed textile and garment enterprises in 2020 and the listing situation of textile and garment enterprises in recent years are shown in Table 1

V. capital raising and merger and reorganization

Capital raising through additional issuance and merger and acquisition is one of the important ways to help listed companies transform and upgrade, rebuild (expand) production facilities, revitalize assets, expand new markets and resist risks and challenges. With the deepening reform of China's capital market, the demand of textile and clothing listed companies for capital raising and merger and acquisition has been continuously released, which is of great significance to the promotion of high-quality development of textile.

1. According to the follow-up and inquiry of relevant information, in 2020, there are 10 Textile Listed Companies in Shanghai and Shenzhen stock exchanges (an increase of 4 companies compared with the previous year), a total of 26.601 billion yuan (an increase of 23.74% compared with the previous year), and obtained supporting financing funds of 1.351 billion yuan.

2. 10 textile listed companies issued the first reorganization announcement (4 less than the previous year). By the end of the year, due to various reasons, 3 textile listed companies had stopped implementing restructuring.

3. Ten textile listed companies raised 9.476 billion yuan through convertible bond issuance. The number of convertible bond issuing companies and the amount of funds raised increased by 100% and 316.89% respectively.

6. The revenue maintained the level of last year, and the quality and efficiency of profits improved

1. Main business income

In 2020, the main business income of 192 Textile Listed Companies in Shanghai and Shenzhen stock exchanges was 1278.251 billion yuan, which was basically the same as that of the previous year.

(1) there are 29 textile listed companies whose main business income exceeds 10 billion yuan. Hengli Petrochemical (600346. SH) and Rongsheng Petrochemical (002493. SZ) ranked first and second with 152.373 billion yuan and 107.265 billion yuan respectively. Hengyi Petrochemical (000703. SZ) ranked third with revenue of 86.430 billion yuan. The total revenue of 29 enterprises with main business income over 10 billion yuan totaled 92.100 billion yuan, accounting for 71.54% of the total annual revenue of textile listed companies.

(2) from the perspective of revenue distribution, in 2020, two-thirds of the listed textile companies' operating revenue will be less than 5 billion yuan. The distribution of revenue is shown in Figure 5

2. Profitability

In 2020, the total net profit of listed textile companies is 75.422 billion yuan, which is 20.01% higher than that of the previous year, and the growth rate is 4.32% higher than that of last year. Among them, 89 companies achieved a year-on-year increase in net profit, accounting for 46.35% (a decrease of 0.24 percentage points compared with the previous year).

In 2020, 20 companies (10.42%) had net profits of more than 1 billion yuan. Hengli Petrochemical (600346. SH), Rongsheng Petrochemical (002493. SZ) and Youngor (600177. SH) ranked the top three with net profits of 13.495 billion yuan, 13.372 billion yuan and 7.207 billion yuan, respectively. Table 2 shows the list of 20 textile listed companies with net profit of more than 1 billion in 2020

The statistical data in the above table show that 20 leading large enterprises with net profit of more than 1 billion in 2020, such as Hengli petrochemical, Rongsheng petrochemical, Youngor, Zhejiang Longsheng, robust medical, Dongfang Yuhong, Sinoma technology, Hailan home, etc., performed very well, with an average net profit growth rate of 51.61% year-on-year, accounting for 98.33% of the total annual net profit of the whole textile listed company. Among them, the chemical fiber manufacturing industry is the largest, accounting for 50.95%; 5 industrial textiles, accounting for 17.44%; There are 3 garment manufacturing enterprises, accounting for 13.75%.

And the remaining less than 2% of the profits by 89.58% of small and medium-sized textile listed companies. It can also be seen that in 2020, although suffering from adverse factors such as the Sino US trade game and the new crown epidemic situation, the average annual income growth of leading enterprises in the industry will exceed 50% with their own capital scale, technological innovation ability, market and brand influence, government support and other favorable conditions. At the same time, under the background of the steady growth of the revenue of the leading enterprises in these industries, many small and medium-sized enterprises are likely to have difficulties and unsatisfactory performance.

7. Good performance of operating capacity, cash flow and income generation mixed with worries

1. Three fees

Statistics show that the sales revenue in 2020 is basically the same as that of the previous year. On this premise, the cost of the three expenses of the enterprise decreased by 6.15% compared with the previous year. Among them, the sales expenses decreased significantly. According to statistics, in 2020, the sales expenses of listed textile companies are 64.889 billion yuan, the management expenses are 46.067 billion yuan, and the financial expenses are 25.200 billion yuan. Compared with the previous year, they decreased by 14.57%, 2.19% and - 14.42% respectively.

2. Operation efficiency

The main indicators of operation capacity of listed textile companies from 2019 to 2020 are shown in table 2-12. From the inventory turnover rate, accounts receivable turnover rate, current assets turnover rate, total assets turnover rate and other major operating indicators, the operation of Textile Listed Companies in 2019 is better than that of the previous year.

3. Cash flow and income generating performance

(1) according to the data, in 2020, the net cash flow (total) generated by the operating activities of listed textile companies will be 149.687 billion yuan, an increase of 37.15% over the previous year. The net cash flow generated by each unit (household) generated 780 million yuan of net cash flow, an increase of 25.81% compared with 620 million yuan in the previous year.

(2) according to statistics, in 2020, 97 textile listed companies achieved positive growth in net cash flow from operating activities, accounting for 50.52% (10.28 percentage points lower than that in 2019). The data show that in 2020, although more than half of the listed companies still have a positive growth in net cash flow from operating activities compared with the previous year, the proportion of enterprises with positive growth has decreased significantly.

(3) according to the annual report, the top three net cash flow from operating activities in 2020 are petrochemical enterprises, namely Hengli Petrochemical (600346. SH), Rongsheng Petrochemical (002493. SZ) and Zhongtai chemical (002092. SZ). Chemical fiber manufacturing accounts for half of the top ten rankings. Table 3 shows the list of top ten textile listed companies that create net cash flow:

8. The capital structure is basically reasonable and the solvency is better than that of the previous year

1. Asset scale

By the end of 2020, the total assets of listed textile companies had reached 207.266 billion yuan, an increase of 7.92% over the previous year (the growth rate decreased by 16.5 percentage points compared with the previous year). The scale of net assets was 937.365 billion yuan, an increase of 13.50% over the previous year (the growth rate was 2.11 percentage points lower than that of the previous year).

2. Capital composition

(1) by the end of 2020, the proportion of current assets and current liabilities of textile listed companies are within a reasonable safe range. According to the statistics of the annual report, the proportion of current assets (average) and current liabilities (average) of textile listed companies were 56.72% and 82.62%, respectively, 1.56 percentage points and - 0.58 percentage points higher than the previous year,

(2) according to the annual report, by the end of 2020, the intangible assets of 192 textile listed companies totaled 67.347 billion yuan. Among them, the land use rights and interests are 50.819 billion yuan (accounting for 75.46%), and the trademark rights are only 462 million yuan (it seems that the proportion is somewhat too low, and there should be a large space for the development of brand trademarks in the textile and clothing industry). Others mainly include: 3.117 billion yuan for patented technology, 3.158 billion yuan for proprietary technical products (non patented technology), and 2.033 billion yuan for franchise rights.

(3) by the end of 2020, the asset liability ratio (overall average) of textile listed companies was 54.72% (2.23 percentage points lower than the previous year), and the enterprise debt ratio (unit average) was 39.37% (basically maintained at the level of last year).

(4) from the distribution of enterprise debt ratio (as shown in Figure 6 below), in general, the asset liability ratio of textile listed companies is mainly concentrated in the area of 20-50%, and the number of enterprises is more than half. The distribution of debt ratio of listed textile companies in 2019 is shown in the figure below. The debt level is still basically at a low level, and the overall debt proportion has slightly increased.

Figure 6

3. Short term loans

According to the data of the annual report, in 2020, the total short-term loans of textile listed companies totaled 312.904 billion yuan, an increase of 7.14% (24.49 percentage points lower than that of the previous year). As shown in Figure 7 below, since 2017, the annual growth rate of short-term loans of the textile and garment industry has been about 30%, but the increase of short-term liabilities in 2020 will decrease significantly.

Figure 7

4. Solvency

According to the annual report data, the proportion of current assets and current liabilities of Textile Listed Companies in 2020 are 56.72% and 82.62% respectively; The current ratio, quick ratio and cash ratio were 2.72, 2.21 and 1.05 respectively. Generally speaking, the short-term solvency of textile listed companies is better than that of the previous year, and the main indicators are in a reasonable range, showing a relatively stable performance.

5. Inventory asset ratio

According to the annual report, by the end of 2020, the total inventory of textile listed companies was 245.905 billion yuan, including 89.986 billion yuan of goods in stock, 5.82% and 9.07% lower than that of 261.108 billion yuan and 98.963 billion yuan of the previous year (the same statistical caliber).

(1) according to the annual reports of 138 Textile Listed Companies in five major textile sub industries, including chemical fiber manufacturing, clothing and apparel, industrial textiles, textile machinery and household textiles, the inventory asset ratio of chemical fiber manufacturing industry in these five sub industries is the lowest, and the clothing processing industry is the highest, accounting for 8.65% and 21.88% respectively; The proportion of inventory goods in the inventory assets is 39.59% in the chemical fiber industry, and 85.90% in the clothing industry (the largest proportion of inventory among the five statistical sub industries).

(2) take the 2020 annual report as an example, among the 50 listed companies of clothing manufacturing industry, 39 companies have more than 100 million yuan in inventory. Among them, Senma clothing (002563. SZ), Hailan home (600398. SH), taipingniao (603877. SH), Jihua International (601718. SH), Meibang clothing (002269. SZ), soudete (002503. SZ), Saturday (002291. SZ), Youngor (600177. SH), seven wolves (002029. SZ) and anzheng fashion (603839. SH) exceeded 1 billion yuan. Table 4 and table 5 are as follows:

Table 4 list of 39 textile manufacturing listed companies with inventory over 100 million yuan

According to statistics, among the 22 clothing manufacturing listed companies with net profit of more than 100 million yuan in 2020, 21 of them have inventory of more than 100 million yuan. The data shows that in recent years, such factors as the rapid growth of the clothing sector's production scale have led to the problems of high inventory, product homogenization, fierce competition and capital turnover in the whole industry. There are many garment listed companies with serious overcapacity and high inventory. If we do not pay close attention to the supply side reform and adjustment, eliminate backward production capacity as soon as possible, realize product upgrading, take the road of branding and further meet the personalized needs of consumers, this high inventory situation will only become more and more severe, and will eventually lead to serious performance losses. Table 5 shows the inventory situation of 22 clothing manufacturing listed companies with a profit of more than 100 million yuan in 2020

9. R & D investment has continued to grow, and the intensity of investment has leapt to a new level

1. Statistics show that the annual actual R & D expenditure of Textile Listed Companies in 2020 will total 22.580 billion yuan, an increase of 9.26% over the previous year; The overall R & D investment intensity of textile listed companies was 1.77, an increase of 0.08 percentage points over the previous year; The average R & D investment intensity of listed companies was 3.36, 0.28 percentage points higher than that of the previous year.

2. According to statistics, in 2020, 55 textile listed companies invested more than 100 million yuan in R & D (accounting for 28.65%, 2.6 percentage points lower than the previous year). Rongsheng Petrochemical (002493. SZ), Tongkun (601233. SH) and Sinoma (002080. SZ) ranked among the top three with 1.964 billion yuan, 1.042 billion yuan and 915 million yuan respectively.

3. In 2020, the average R & D investment intensity of textile listed companies is 3.36, which is 0.28 percentage points higher than that of last year. Among them, Ruichi intelligent (688215. SH), Guangwei composite (300699. SZ) and DAHAO Technology (603025. SH) ranked first among the top three with 13.13, 12.96 and 11.85, respectively. The distribution of R & D investment intensity of Textile Listed Companies in 2020 is shown in Figure 8 below:

Figure 8

10. Bravely shoulder social responsibility and strive for greater contribution

1. Tax payment

According to the annual report statistics, in 2020, 192 textile listed companies turned in 24.757 billion yuan of income tax (an increase of 30.12% over the previous year), and the annual tax growth rate increased by 25.72%, which is the largest growth year in recent years. Figure 9 shows the income tax paid by listed textile companies from 2017 to 2020

Figure 9

2. Employee income

According to the annual report data, in 2020, 192 Textile Listed Companies in Shanghai and Shenzhen stock markets actually paid 92.677 billion yuan in wages, bonuses, various subsidies, pension and medical insurance, social insurance, housing accumulation fund, etc., which was 17.45% lower than that of the previous year. Among them, salary payment was 25.025 billion yuan, a decrease of 663 million yuan compared with the previous year. In the past three years, the growth rate of cash remuneration paid by enterprises to and for employees has increased rapidly year by year (see Figure 10 for details)

Figure 10

3. Industry status and contribution

Compared with the statistical report of textile industry in 2020, compared with the relevant statistical data of 34196 Enterprises above Designated Size, the number of textile listed companies accounts for only 0.51%, while the proportion of asset scale is as high as 47.16%. In 2020, the total revenue of the whole year accounts for 28.29% of the enterprises above the designated scale in the whole industry, and the profit accounts for 48.52%. Textile listed companies have made important contributions in technology innovation, epidemic prevention and control material supply, investment and financing cooperation, brand and market development, etc., which highlights their leading role in tackling difficulties and overcoming difficulties in the economic development of textile industry. Table 6 shows the comparison of the main indicators of the economic operation of the textile and garment industry from 2019 to 2020

Data sources: National Bureau of statistics, annual report of listed companies, China Textile Industry Economic Research Institute

11. Asys.17 comprehensive evaluation results of operation and development performance of listed textile companies

1. The total score of asys.17 in this year is 549.92, which is 1.47% lower than that of last year. Among them, the evaluation score of income quality and profitability was 58.46 (down 5.44% compared with the previous year), 61.33 (down 0.06% compared with the previous year), 61.88 (increased by 2.60% compared with the previous year), and 33.41 (decreased by 1.62% compared with the previous year).

The evaluation results show that the comprehensive performance evaluation results of 192 Textile Listed Companies in Shanghai and Shenzhen stock markets in 2020 are slightly lower than that of the previous year, but the overall operation situation is basically stable. The evaluation data show that the capital structure of textile listed companies is more optimized, the debt paying ability of textile listed companies is generally improved, and the risk awareness and prevention of enterprises are further strengthened.

2. In 2020, his health index (average) of textile and garment listed companies in Shanghai and Shenzhen stock markets is 80.12, which is 5.90 points higher than that of last year. According to his value, the textile listed companies will step into a healthy state again in 2020. It shows that textile listed companies pay attention to the optimization and adjustment of capital structure in the past year, the potential risks or unstable factors that may exist in the operation and development of enterprises have been reduced, and the solvency and risk awareness prevention have been significantly improved. The health index (his score) of textile listed companies over the years since 2010 is shown in Figure 11 below

Figure 11

12. Ranking of top 30 Textile Listed Companies in 2020

1. Top 30 market value

2. Top 30 main business income

3. Top 30 net profit

4. The year-on-year growth rate of net assets was top 30