Transformation And Development: Cotton Textile Top 100 Enterprises Summit Held Online

On November 30, China Cotton Textile Raw Material Industry Chain Conference and Top 100 Cotton Textile Enterprises Summit was held online. Dong Kuiyong, President of China Cotton Textile Industry Association, Li Jie, Vice President and Secretary General, Wang Yao, Vice President and Jing Shenquan attended the conference, which was presided over by Guo Zhanjun, Assistant President and Deputy Secretary General of China Cotton Textile Industry Association.

The conference was hosted by China Cotton Textile Industry Association, undertaken by the Raw Material Industry Chain Branch of China Cotton Textile Industry Association, the Information Statistics Professional Committee of China Cotton Textile Industry Association, and co organized by Jingwei Textile Machinery Co., Ltd., Digital World (Shanghai) Industrial Technology Co., Ltd., which was awarded Henan Tongzhou Cotton Industry Co., Ltd., Tangshan Sanyou Group Xingda Chemical Fiber Co., Ltd Xinjiang Zhongtai Textile and Garment Group Co., Ltd.

　　 international environment

"Belt and Road" and RCEP countries become new highlights

Liu Yaozhong, Deputy Director of the International Trade Office of the China Textile Industry Federation, shared his views on the "recent situation and prospects of international trade and investment in the textile industry". Liu Yaozhong analyzed the international trade of textiles and clothing from 1990 to 2020, and divided the export situation into three stages according to the proportion of textile and clothing exports in the world textile and clothing export trade: rapid growth period, steady growth period, and stable platform period. As for the import situation, Liu Yaozhong introduced that China's textile and clothing imports from 1990 to 2020 were characterized by "stable scale and large changes in product structure".

As for the international trade performance of the textile industry since the epidemic, Liu Yaozhong particularly analyzed the export of masks. He said that at the beginning of the outbreak of the epidemic, masks became an important part of export products. In 2020, mask exports accounted for 34% of the annual textile exports, but then went out of a straight downward trend: in 2021, China's mask exports reached 12.9 billion US dollars, down 75.9% year on year, accounting for 8.9% of the total textile exports; From January to September 2022, China's mask export will reach 2.95 billion US dollars, down 70.2% year on year, accounting for 2.6% of the textile export in the same period.

Liu Yaozhong especially pointed out that there is another point that deserves the attention of cotton textile enterprises. In recent years, the overall export to countries along the "Belt and Road" and RCEP countries has shown an obvious upward trend. In 2021, China's exports of textiles and clothing to 64 countries along the "Belt and Road" will reach US $113.8 billion, accounting for 36% of the industry's exports to the world. In 2021, China's export of textiles and clothing to 149 countries jointly building the "Belt and Road" will reach US $158.4 billion, accounting for 50.2% of the industry's export to the world; In the first three quarters of 2022, the textile and clothing industry exported 95.1 billion dollars of textile and clothing to countries along the "Belt and Road", up 17.7% year on year. In terms of RECP, in 2021, China's total import and export trade of textiles and clothing to RECP member countries will be US $98.76 billion, accounting for 28.7% of the industry's foreign trade. From January to August 2022, China's textile and clothing exports to RCEP member countries reached 70.9 billion US dollars, up 15.7% year on year.

In terms of outbound investment, Liu Yaozhong said that there are three main characteristics: the cotton textile and clothing industry has an early "going global" process, and the stock of outbound investment and M&A is large; The capital utilization of textile enterprises has become more international, and the investment flows to international financial centers such as Hong Kong and Singapore have increased; Epidemic factors did not significantly weaken the enthusiasm of industry enterprises to invest abroad, and enterprises still overcame difficulties to carry out overseas operations.

As for the future, Liu Yaozhong pointed out that the industry is facing a dramatically changing trade environment and an unavoidable economic cycle. Enterprises should focus on accelerating the construction of a new development pattern with domestic circulation as the main body and domestic and international double circulation promoting each other, as well as promoting the high-quality development of the "Belt and Road".

　　 Development during the 14th Five Year Plan

Led by the spirit of the 20th National Congress of the Communist Party of China

Dong Kuiyong, President of the China Cotton Textile Industry Association, interpreted the Guidelines for the Development of the Cotton Textile Industry during the 14th Five Year Plan. Dong Kuiyong summarized the achievements of the "13th Five Year Plan" industry, deeply analyzed the main development situation faced by China's cotton textile industry during the "14th Five Year Plan" period, put forward the development goals, and made a detailed introduction from the key tasks, key projects, key technologies and other aspects.

Dong Kuiyong said that the "14th Five Year Plan" period is the first five years for China to build a moderately prosperous society in an all-round way and achieve the first century goal, and to seize the momentum to start a new journey of building a socialist modern country in an all-round way and march towards the second century goal. The cotton textile industry is a deeply rooted basic industry, an industry related to people's livelihood, and a global industry of openness and cooperation. As the most traditional field and symbolic composition, it is of special importance in the textile and clothing industry. During the "14th Five Year Plan" period, under the background that the world has experienced unprecedented changes in a hundred years and that China is actively building a new development pattern of "double circulation" and orderly promoting the "double carbon" strategy, the cotton textile industry, based on the new development stage, should further improve its scientific and technological innovation capabilities, create a new model of intelligent manufacturing, and accelerate green transformation.

Dong Kuiyong pointed out that during the "14th Five Year Plan" period, China's cotton textile industry should focus on the following aspects to achieve transformation and upgrading: "improve the coordination of industrial development, build an industrial security development system, improve scientific and technological innovation ability, improve the core competitiveness of products, promote green sustainable development, and strengthen the construction of professional talent system".

At the successful conclusion of the Twentieth National Congress of the Communist Party of China (CPC), Dong Kuiyong specially sorted out six key contents related to the industry: "focus on promoting high-quality development, building a modern industrial system, improving total factor productivity, improving the resilience and safety level of the industrial chain supply chain, accelerating the green transformation of the development mode, and strengthening talent support for modernization", Publicize and implement the leading role of the report of the 20th CPC National Congress in the development of the industry.

　　 Raw material market

　　 Face reality, take the initiative to cultivate internal skills

The trend of cotton market has always been the focus of the industry. Zhao Nana, the assistant president of Henan Tongzhou Cotton Industry Co., Ltd., delivered the theme report of "Analysis and Prospect of Current Cotton Market Situation". Zhao Nana reviewed the cotton market since 2022, analyzed the influencing factors, and predicted the future market trend.

He pointed out that in 2022, the cotton market has gone through a curve of "macro determining trend, industry determining rhythm and extent", of which the main influencing factors include: interest rate increase in the United States, weak supply and demand in the global cotton market, and the phased impact of the epidemic on supply and demand rhythm. Zhao Nana pointed out that the interest rate increase cycle launched by the Federal Reserve this year is unique in history in terms of the pace and extent of interest rate increase, and the rapid rise of interest rates has a huge impact on the economy. In the future, it can be seen that the US interest rate hike and scale reduction are still not over, and the repression of interest rate hike and scale reduction on commodities is still ongoing. Even though the pace of interest rate hike slowed down in December, the terminal neutral interest rate is still as high as 5%, and the pressure on enterprises to repay is increasing, causing huge damage to the real economy. He pointed out that European and American countries are likely to fall into economic recession next year.

For the supply and demand sides, it is predicted that the speculation in the supply side countries will end, the main producing countries will basically set production, and the production reduction market of some countries will also be fully absorbed. At the consumer end, the global economy has slowed down, the real income of residents has declined, and the US terminal has entered the stage of active de stocking. Consumption will continue to decline in the future, the Southeast Asian market will continue to weaken, and exports will shrink accordingly. The international cotton price has some holding value under the situation of macro downward trend, weak supply and demand, but more decline in the demand side. However, due to the interference of the epidemic situation, it still needs to wait in time.

After learning about the cotton market, Xu Xiaoyuan, Deputy Secretary General of China Cotton Textile Industry Association, made a theme report on "2022 China cotton textile industry operation status and trend". Xu Xiaoyuan made a detailed introduction from the aspects of equipment utilization, production, sales, raw material market price, prosperity index, product market price, reserve cotton rotation, etc.

Xu Xiaoyuan said that under the complex and severe environment, the cotton textile industry has been carrying a heavy load since this year. From January to October, the utilization rate of spinning and weaving equipment of enterprises tracked by the association dropped significantly compared with the same period last year, especially the yarn output continued to be in a negative growth state. Under the expectation of the "golden nine and silver ten" peak season, the market experienced a wave of temporary order tide and destocking in September, and the market demand cooled again in October. The price of cotton fluctuated sharply, and the difference between internal and external cotton prices fluctuated sharply. Since late March, the difference between internal and external cotton prices has been inverted, exceeding 6700 yuan/ton at the highest. The average price difference between cotton and viscose, polyester staple fiber is at a historical high, overlapping Xinjiang related issues. Enterprises adjust their product structure, increase the use of non cotton fibers, and produce differentiated products. Cotton yarn and cotton cloth prices continued to fall, and the decline continued to deepen. On this basis, the growth of major economic indicators of the cotton textile industry slowed down, profits declined and losses expanded.

In the face of the severe situation, Xu Xiaoyuan pointed out that the development of the industry has the impact of fluctuations in raw material prices, sluggish consumption, insufficient orders, shortage of labor, and Xinjiang related issues. In view of the problems and difficulties faced by the industry, the Association has repeatedly reported to the relevant national departments, and put forward relevant suggestions in terms of quota distribution, rotation of cotton stocks, and promotion of cotton exports. Xu Xiaoyuan believes that the situation is still very serious from the current point of view. The core problem is the decline in demand caused by the slowdown in economic growth. In the later stage, we need to focus on macro policies and the start-up and shutdown of downstream enterprises in the industrial chain.

　　 Transformation Path

Digitization and greening are still the main theme

In the era of digital transformation, cotton textile enterprises should actively embrace new technologies and seek new opportunities. Liu Yiming, Chairman of Digital Intelligence World (Shanghai) Industrial Technology Co., Ltd., based on finance and technology, shared "new ideas for the management of pure cotton textile enterprises". Liu Yiming analyzed in detail the new possibilities between the cotton textile industry and finance and technology, and introduced the development model of DIW - that is, DIW focuses on the subdivision of 32 and 40 cotton yarns, "single" production, and improves production efficiency, Through scale expansion, it further magnified the advantage of production efficiency, and helped enterprises play the financial attribute of cotton (yarn), hedge against the impact of production cost changes and phased inventory, and improve cross industry cycle capability. Liu Yiming believes that in the future, in the combination of industry and finance, industry and technology, some excellent enterprises will be launched from the industrial end. Based on the industry, the professional ability in finance and technology will be applied to the industry and enterprises.

Liu Yiming said that promoting high-quality development of the cotton textile industry not only requires cooperation among enterprises in the industrial chain, but also relies on the full support of the industry association. It was suggested that the Association could organize enterprises in the cotton textile industry to participate in the design of the facilitation of the cotton futures hedging and delivery system, so as to promote the digital and intelligent development of the cotton textile industry.

Regenerated cellulose fiber is one of the main varieties of non cotton fiber used in cotton textile industry. It is a chemical fiber product with the performance closest to that of cotton fiber. Its hygroscopicity, breathability and dyeability are even better than that of cotton fiber, with good skin affinity and water absorption. Cui Haiyan, senior engineer of Tangshan Sanyou Group Xingda Chemical Fiber Co., Ltd., introduced the company's efforts in green environmental protection in recent years with the title of "green fiber introduction, clean future". Introduction: In 2021, Tangshan Sanyou officially joined the "30 · 60 China Textile and Clothing Carbon Neutralization and Acceleration Action". Under the leadership of the Social Responsibility Office and the CV Alliance, it will continue to promote low-carbon energy, green materials, cleaner production and low-carbon products, and set an example for the industry. Subsequently, Sanyou Chemical Fiber cooperated with CV Alliance and Intertek Group to jointly carry out the carbon footprint analysis of products based on Tangsi products "from cradle to gate".

Cui Haiyan introduced the production and downstream application of Tangshan Sanyou's sustainable products - Tangsi series products, and said that with the gradual increase of the demand for green and sustainable raw materials from the end clothing brands, the textile industry source should strengthen horizontal cooperation, vertical cooperation with fabrics and end brands, and jointly develop new products needed by the market Consumers provide green, sustainable and high-quality textile raw materials.

The meeting held a high-end dialogue around the countermeasures of cotton textile enterprises under complex situations. Dong Kuiyong, Chairman of China Cotton Textile Industry Association, presided over the link, Wei Gangmin, Chairman of the Raw Material Industry Chain Branch of China Cotton Industry Association and Chairman of Henan Tongzhou Cotton Industry Co., Ltd; Zhou Yejun, Chairman of China Cotton Association Yarn Branch, Secretary of the Party Committee and Chairman of Wuxi Yimian Textile Group Co., Ltd; Su Jianjun, honorary chairman of Dezhou Hengfeng Group and general manager of Xinjiang Dongchunxing Group; Dong Shuangwei, General Manager of Industrial Finance Research Department of Digital Intelligence World (Shanghai) Industrial Technology Co., Ltd., participated in the dialogue.

The guests mainly focused on the impact of the global macroeconomic situation on the industry, how to respond to trade protectionism, the prediction of the price trend of cotton textile raw materials, the development of cotton textile products and the application trend of raw materials and market development, and the transformation and choice of foreign trade and domestic demand markets.

The conference released the list of national technical experts (involving cotton textile enterprises), top 100 cotton textile revenue enterprises, and annual outstanding statistical units, clusters, and workers.

As one of the important statistical work of China Cotton Textile Industry Association, the series list of top 100 cotton textile enterprises in terms of revenue has always been the focus of the industry. Gai Lixuan, deputy director of China Cotton Textile Industry Association, conducted detailed research and analysis around the list of top 100 cotton textile enterprises in 2021 released this time.