Industry Trends: Analysis On Economic Operation Of China'S Printing And Dyeing Industry From January To July 2021

From January to July 2021, the quality and efficiency of China's printing and dyeing industry continued to recover, and the operation of enterprises continued to improve. However, under the influence of uncertain and unstable factors, such as the epidemic situation at home and abroad, the domestic flood situation and other uncertain and unstable factors, the growth rate of major economic indicators of the industry has slowed down, and the industry is still under pressure to achieve a steady recovery.

　　 Production continued to grow, and the growth rate of output dropped

According to the data of the National Bureau of statistics, from January to July of 2021, the output of printing and dyeing fabrics of Enterprises above Designated Size in the printing and dyeing industry is 34.078 billion meters, with a year-on-year increase of 25.63%, and an average growth rate of 4.53% in two years, which is 5.2% lower than that in January June. In July, affected by multiple factors such as the continuous evolution of foreign epidemic situation, sporadic epidemic situation and flood situation in some parts of China, the production of printing and dyeing enterprises was under pressure, and the average growth rate of printing and dyeing cloth output in two years was somewhat lower than that of last month.

　　 Develop quality and efficiency, continue to repair, and still need to consolidate a good foundation

According to the data of the National Bureau of statistics, from January to July 2021, the proportion of three fees for Enterprises above Designated Size in the printing and dyeing industry is 6.87%, with a year-on-year decrease of 0.33 percentage points. Among them, cotton printing and dyeing enterprises are 6.68%, and chemical fiber printing and dyeing enterprises are 8.32%; The turnover rate of finished products was 18.23 times / year, with a year-on-year increase of 20.41%; The turnover rate of accounts receivable was 8.45 times / year, with a year-on-year increase of 14.69%; The turnover rate of total assets was 1.00 times / year, with a year-on-year increase of 16.36%. The main operational quality indicators achieved significant recovery growth on the basis of the low base in the same period of last year, but some indicators were still far behind before the epidemic. Compared with the same period in 2019, from January to July of 2021, the proportion of three fees of Enterprises above Designated Size in the printing and dyeing industry will increase by 0.19 percentage points, the turnover rate of finished products and total assets will be reduced by 12.98% and 9.12% respectively, and the turnover rate of accounts receivable will be increased by 2.10%, which reflects that the current production and marketing linkage of printing and dyeing enterprises is still not efficient and smooth.

Table 1 main operation indexes of printing and dyeing enterprises above designated scale from January to July 2021

According to the data of the National Bureau of statistics, from January to July of 2021, 1560 printing and dyeing enterprises above Designated Size in China realized a revenue of 157.834 billion yuan, a year-on-year increase of 25.36%, and an average growth rate of - 0.80% in two years; The total profit was 6.214 billion yuan, with a year-on-year increase of 45.36% and an average growth rate of - 6.41% in two years; The profit margin of cost and expense was 4.18%, increased by 0.62 percentage points year on year; The profit margin of sales was 3.94%, up 0.54% year on year; The number of loss making enterprises was 430, accounting for 27.56%, down 13.26% year on year; The total loss of loss making enterprises was 1.279 billion yuan, with a year-on-year decrease of 35.68%; The export delivery value was 20.990 billion yuan, with a year-on-year increase of 17.86% and an average growth rate of - 5.62% in two years. Compared with the same period in 2019, from January to July in 2021, the cost profit margin of printing and dyeing enterprises above Designated Size will be reduced by 0.51 percentage points, the profit margin of sales will be reduced by 0.48 percentage points, the loss area will be expanded by 4.51 percentage points, and the total loss will be increased by 8.08%. It can be seen that although the main benefit indicators of the industry still maintain a restorative growth trend, they have not yet recovered to the level before the epidemic, and the steady recovery foundation of the industry is not firm.

At present, in terms of production, the output of printed and dyed fabrics has recovered and exceeded the level before the epidemic, but there is still a gap between the revenue and profits of enterprises compared with that before the epidemic, especially the obvious difference in profit level. The main reasons are that the prices of bulk commodities remain high, the prices of raw materials in printing and dyeing production link have risen sharply, and the costs of enterprises remain high, At the same time, the market competition is fierce, and the cost is difficult to transmit to the downstream, resulting in the profit space of printing and dyeing enterprises being squeezed.

Table 2 main economic indicators of printing and dyeing enterprises above Designated Size from January to July 2021

　　 The export showed a trend of rising both in volume and price, but it has not yet fully recovered to the level of the same period before the epidemic

According to the statistics of HS8 code of China Customs, the export volume of eight categories of printing and dyeing products from January to July in 2021 is 15.537 billion meters, a year-on-year increase of 33.54%, and a decrease of 7.12 percentage points compared with January June; The export volume reached 15.589 billion US dollars, up 35.22% year on year, down 6.11 percentage points from January to June; The average unit price of export was 0.98 USD / m, with a year-on-year increase of 1.25%, 0.78 percentage points higher than that of January June. Compared with the same period in 2019, the export volume increased by 2.43%, the export value decreased by 1.04%, and the average export unit price decreased by 3.39%. Exports continued to maintain the recovery growth trend in the first half of the year, but the growth rate of exports dropped slightly compared with the first half of the year. At present, although the export of the industry has maintained a good growth, the export-oriented enterprises still face the pressure of high international logistics costs and the fluctuation of RMB exchange rate.

Table 3 export of eight categories of printing and dyeing products from January to July 2021

Overall, from January to July 2021, the printing and dyeing industry continued the recovery growth trend in the first half of the year, and the main economic indicators continued to improve, but the growth rate was somewhat lower than that from January to June. The quality and efficiency of the industry has been stable, the efficiency has been greatly improved, and the export has been greatly increased. The sustained global economic recovery is the main underlying logic for China's textile industry to achieve steady recovery. The attributes of basic consumer goods of textiles and clothing determine that the sustained recovery of the industry requires constant empowerment of terminal consumption. It is expected that the global economic growth will further improve in the second half of the year, and the international market demand is expected to continue to warm up; China's macroeconomic recovery will continue to be consolidated, and domestic demand is expected to further stabilize and improve. In the second half of the year, the printing and dyeing industry is expected to maintain a good momentum of repair and development. In view of the higher base factor in the second half of last year and the gradual normalization of the recovery growth rate, it is expected that the growth rate of the main economic indicators in the second half of last year will obviously drop.

Note: the 2-year average growth rate refers to the growth rate calculated by geometric average method based on the corresponding number of the same period in 2019.

(source: China printing and dyeing industry association)

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