China Printing And Dyeing Industry Association Announces Last Year'S Industrial Economic Operation

In 2022, the century change and the century epidemic will be intertwined, the geopolitical situation will be turbulent, the risk of world economic downturn will increase, the domestic economy will be repeatedly impacted by multiple unexpected factors, such as epidemic outbreaks, extreme high temperature weather, and the triple pressures of demand contraction, supply shock, and expected weakening will continue to evolve, and the development environment of the printing and dyeing industry will be complex, severe Uncertainty has risen significantly. Throughout the year, the production and benefit indicators of the printing and dyeing industry showed a fluctuating downward trend, and the export performance was good. The export of major printing and dyeing products kept growing, but the export growth rate gradually declined. On the whole, the production and operation pressure faced by the industry enterprises in 2022 increased significantly.

Terminal demand is still insufficient

The decline in output further deepened

According to the data of the National Bureau of Statistics, from January to December 2022, the output of printing and dyeing fabrics of enterprises above designated size in the printing and dyeing industry will be 55.622 billion meters, a year-on-year decrease of 7.52%, 0.47 percentage points more than that from January to November. Throughout the year, in the first quarter, the industrial production situation was basically good, and the output of printed and dyed fabrics maintained a positive growth. From the second quarter, the intensified conflict between Russia and Ukraine, the accelerated tightening of monetary policy in Europe and the United States, the frequent occurrence of domestic epidemics and other factors had a great impact on the terminal consumer market, and the growth rate of printed and dyed fabrics output fell quarter by quarter. The shortage of total demand is a prominent problem facing the current industry production. In 2022, the total retail sales of social consumer goods in China will decline by 0.2%, of which the retail sales of clothing, shoes and hats, knitwear and textiles above the designated size will decline by 6.5%, down 19.2 percentage points from the same period in 2021.

Figure 1 Production and growth of printing and dyeing fabrics of enterprises above designated size in 2022

Operation efficiency continues to slow down

Further decline in economic benefits

According to the data of the National Bureau of Statistics, from January to December 2022, the turnover rate of finished products, the turnover rate of accounts receivable and the turnover rate of total assets of printing and dyeing enterprises above designated size decreased by 3.30%, 0.61% and 0.72% year on year, respectively, which was larger than that from January to November, reflecting a further slowdown in production and marketing efficiency and capital turnover efficiency of enterprises in December. In terms of economic benefits, the industry presents a situation of "increasing revenue without increasing profits". From January to December, printing and dyeing enterprises above designated size achieved an operating revenue of 312.526 billion yuan, an increase of 4.42% year on year, down 1.55 percentage points from January to November; The total profit was 13.27 billion yuan, down 16.49% year on year, 6.83 percentage points more than that from January to November; The sales profit margin was 4.25%, down 1.06 percentage points year on year. The loss area of the industry further expanded, and the total loss of loss making enterprises increased significantly. From January to December, the number of loss making households of 1716 printing and dyeing enterprises above designated size was 532, with a loss area of 31.00%, 12.08 percentage points higher than that of the same period in 2021; The total loss of loss making enterprises was 3.508 billion yuan, up 89.90% year on year.

In 2022, affected by the international turmoil, the global commodity prices will continue to fluctuate at a high level, and the printing and dyeing industry will bear greater pressure at the cost end. According to the data of the National Bureau of Statistics, in 2022, China's energy price will rise by 11.2%, the price of raw materials will rise by 10.3%, the price of means of production will rise significantly, and domestic demand will be insufficient. The industry profit space will be significantly squeezed, and the pressure on enterprises to operate will increase significantly.

Figure 2 Changes in major economic indicators of printing and dyeing enterprises above designated size in 2022

Export keeps growing

The growth rate gradually dropped

According to the statistics of China Customs, from January to December 2022, the export volume of China's eight categories of printing and dyeing products was 29.228 billion meters, up 5.31% year on year; The export value was US $31.346 billion, up 9.06% year on year; The average export unit price was 1.05 US dollars/meter, up 3.56% year on year. In 2022, China's exports of eight categories of printing and dyeing products hit a new high since 2011, including 21.457 billion meters of synthetic filament fabrics, up 11.17% year on year, which contributed greatly to the export growth of the printing and dyeing industry. From the perspective of growth rate, the growth rate of direct export of printing and dyeing products showed a trend of "high in the front and low in the back". In the first half of the year, the overall growth rate maintained a high growth rate. The growth rate began to fall gradually in July, and reached a low point in December, reflecting the gradual contraction of international market demand.

Figure 3 Export of China's eight categories of printing and dyeing products since 2022

From the perspective of export market, ASEAN is still the largest market for China's export of eight categories of printing and dyeing products. In 2022, China's export of eight categories of printing and dyeing products to ASEAN will reach 6.907 billion meters, a year-on-year increase of 14.06%, accounting for 23.63% of the total export volume, 2.18 percentage points higher than that in 2021. Different from the overall export of printing and dyeing products, the export of China's printing and dyeing industry to ASEAN will show a trend of "volume rise and price fall" in 2022, and the export unit price will decrease by 1.47% year on year, mainly due to the decline of export unit price to Vietnam and the Philippines. From January to December, the export volume of China's eight categories of printing and dyeing products to Vietnam and the Philippines accounted for 43.29% of the total export volume to ASEAN, and the export unit price decreased by 4.22% and 11.11% respectively.

In general, 2022 is a year full of challenges for the printing and dyeing industry. Faced with the impact of many unexpected factors, the industry has maintained strategic concentration, worked hard to overcome difficulties and challenges, and demonstrated the resilience and vitality of the industry development. Looking forward to 2023, the domestic and international situation facing the industry will show new changes. Internationally, the slowdown of global economic growth has brought greater pressure on China's printing and dyeing industry's foreign trade exports. In the context of a higher base in 2022, the export scale will shrink in 2023; Domestically, as China's epidemic prevention and control has entered a new stage, the normal production and living order has been restored and the offline consumption scene has been accelerated. With the support of the national policies and measures to stabilize the economy and promote consumption, residents' consumption confidence will be improved, the domestic consumption market is expected to gradually recover, and consumption will become the key force driving the economic growth of the industry. In the post epidemic era, the public's demand for green consumption, health consumption and cultural consumption is more active, and the endogenous power of industry transformation and upgrading will be further strengthened. Industry enterprises should follow the trend of the times, adhere to the market demand orientation, pay attention to technological innovation and product research and development, and serve the people's high-quality life with high-quality development of the industry.