Printing And Dyeing Industry: Economic Operation Analysis Of Printing And Dyeing Industry In The First Three Quarters Of 2023

Since 2023, the domestic and international situation faced by China's printing and dyeing industry has become more complex and severe. Global geopolitical risks are rising, and the efficiency of industrial chain and supply chain connection is affected; Developed economies such as the United States and Europe have adopted tightening monetary policies, increasing downward pressure on the world economy and shrinking external demand in general; Inadequate domestic aggregate demand is still the main contradiction in the current economic operation, and consumer confidence needs to be boosted. In the first three quarters, the production situation of the printing and dyeing industry remained basically stable, and the output of printing and dyeing fabrics achieved a small increase, but the growth rate fell slightly compared with the first half of the year; The export of major printing and dyeing products showed an upward trend in volume and downward trend in price. The decline in average export unit price was further deepened, and the diversification of export markets continued to advance; The main economic indicators continued to recover, the decline continued to narrow, and the pressure on enterprises to operate eased.

The production situation has weakened, and the growth rate of output has dropped slightly

According to the data of the National Bureau of Statistics, from January to September 2023, the output of printing and dyeing fabrics of enterprises above designated size in the printing and dyeing industry will be 40.975 billion meters, with a year-on-year growth of 0.84%, and the growth rate will fall 0.82 percentage points from the first half of the year. From the perspective of monthly output, the output of printed and dyed fabrics from July to September remained below 5 billion meters. Affected by weak textile and clothing consumption, the overall production situation of the printing and dyeing industry in the third quarter was weak. From January to September, the retail sales of clothing, shoes, hats and knitwear and textiles of units above the designated size increased by 10.6% year on year, 2.2 percentage points lower than that in the first half of the year; Among the online retail sales of physical goods, clothing goods increased by 9.6% year on year, with the growth rate declining for four consecutive months. Inadequate terminal demand and reduced production orders have led to the low capacity utilization rate of the printing and dyeing industry, and the industry production situation is still under pressure.

Changes in the output and growth rate of printing and dyeing fabrics of enterprises above designated size in the printing and dyeing industry in the first three quarters of 2023

Source: National Bureau of Statistics

The operation quality needs to be improved, and the business benefits continue to be repaired

Affected by insufficient demand, complex domestic and international situations and other factors, the operation quality of the printing and dyeing industry has declined, and the operation efficiency has recovered slowly. According to the data of the National Bureau of Statistics, from January to September, the proportion of three fees for printing and dyeing enterprises above designated size was 6.93%, up 0.26 percentage points year on year. Among them, the financial expenses increased significantly, up 17.47% year on year; The turnover rate of finished products was 13.90 times/year, down 10.70% year on year, 1.70 percentage points higher than that in the first half of the year; The turnover rate of accounts receivable is 8.09 times/year, down 0.29% year on year, 0.68 percentage points lower than that in the first half of the year; The turnover rate of total assets was 0.95 times/year, down 2.09% year on year, 0.86 percentage points lower than that in the first half of the year.

From January to September, the operating income of printing and dyeing enterprises above designated size was 216.028 billion yuan, a year-on-year decrease of 0.90%, 2.38 percentage points lower than that in the first half of the year; The total profit was 7.434 billion yuan, down 12.23% year on year, 12.11 percentage points lower than that in the first half of the year; The cost profit rate was 3.66%, 0.61 percentage points higher than that in the first half of the year; The sales profit margin was 3.44%, 0.55 percentage points higher than that in the first half of the year. The number of loss making households of 1771 printing and dyeing enterprises above designated size was 628, with a loss area of 35.46%, 3.16 percentage points lower than that in the first half of the year; The total loss of loss making enterprises was 2.804 billion yuan, up 9.63% year on year, 14.60 percentage points lower than that in the first half of the year.

In the third quarter, with a series of national policies to stabilize growth and promote consumption, the operating efficiency of the printing and dyeing industry continued to repair. Although the operating income and total profit of printing and dyeing enterprises above designated size were still negative, the decline gradually narrowed, the industry's sales profit margin gradually increased, and the enterprise's operating efficiency continued to improve.

Growth of operating income and total profit of enterprises above designated size in the printing and dyeing industry in the first three quarters of 2023

Sales profit margin of enterprises above designated size in the printing and dyeing industry in the first three quarters of 2023

Source: National Bureau of Statistics

Stable export under pressure, diversified export market

In the third quarter, due to the contraction of overseas demand, the complex and volatile international trade environment and other factors, the direct export pressure of China's main printing and dyeing products increased, the competition in the export market intensified, and the average export unit price further declined. According to Chinese customs data, from January to September, the export volume of eight categories of printing and dyeing products was 23.615 billion meters, with a year-on-year growth of 4.82%, 0.55 percentage points lower than that in the first half of the year; The export value was US $22.725 billion, a year-on-year decrease of 4.92%, 0.90 percentage points higher than that in the first half of the year; The average export unit price was 0.96 US dollars/meter, down 9.29% year on year, 0.42 percentage points more than that in the first half of the year.

China's indirect export of printing and dyeing products also showed a decline in varying degrees. Specifically, the export of clothing industry continued to decline. From January to September, China's cumulative export of clothing and clothing accessories reached US $121.23 billion, down 8.8% year on year, 2.9 percentage points more than the first half of the year; The home textile industry showed a recovery trend. From January to September, China's household textile exports amounted to US $34.676 billion, down 3.22% year on year, 2.40 percentage points lower than the first half of the year.

Export growth of eight categories of printing and dyeing products in the first three quarters of 2023

Source: China Customs

From the perspective of major export markets, from January to September, China's eight categories of printing and dyeing products exported 5.261 billion meters to ASEAN, up 0.97% year on year, and 5.655 billion meters to RCEP trading partner countries, up 0.35% year on year. The growth rate was 3.85 and 4.47 percentage points lower than the growth rate of total exports, mainly affected by the decline of exports to Vietnam, the Philippines, Thailand, South Korea and other major countries.

From the perspective of major export countries, the characteristics of export market diversification of China's printing and dyeing industry are more obvious. Vietnam and Bangladesh, as the two largest garment exporters next to China, have a large demand for China's printed and dyed fabrics. Since this year, due to the contraction of demand in the European and American markets, the number of printed and dyed fabrics imported from China by Vietnam and Bangladesh has declined. In the first three quarters, the number of exports of China's eight categories of printed and dyed products to Vietnam and Bangladesh has decreased by 4.32% and 12.36% respectively year on year. However, during the same period, the export to Indonesia, Brazil, India and Russia achieved a rapid growth, which was significantly higher than the average export growth rate, which played a supporting role in maintaining the stability of the export scale of China's printing and dyeing industry.

Export situation of China's eight categories of printing and dyeing products in some countries in the first three quarters of 2023

Source: China Customs

In the first three quarters of 2023, China's printing and dyeing industry is facing risks and challenges from abroad and downward pressure caused by multiple domestic factors. The overall economic operation continues to recover and show strong development resilience. Looking forward to the fourth quarter, the printing and dyeing industry still faces many unstable and uncertain factors. Internationally, the conflict between Russia and Ukraine, the conflict between Palestine and Israel are still continuing, and the global geopolitical risk is still high, which will continue to affect the stability of the international trade environment and the security of the industrial chain supply chain; Under the background of interest rate hikes, inflation pressure in major developed economies has eased, but the risk of recession has risen, the cumulative effect of tight monetary policy will continue to appear, and international market demand is still difficult to effectively release; The trend of anti globalization is rising, trade protectionism is rising, and the "nearshore" trade and "friendly shore" trade policies have exerted pressure on the export of China's printing and dyeing industry. On the domestic side, the problems of insufficient macro aggregate demand and lack of confidence of micro subjects have not been fundamentally solved, and the driving role of consumption in the recovery of industrial economic operation still needs to be strengthened. But at the same time, we should also see that positive factors are accumulating, China's national economy continues to recover and improve, and relevant national departments have issued a number of policies and measures to promote the development of the private economy and expand residents' consumption, which will provide long-term support for improving industry expectations, boosting consumer confidence, and enhancing industry recovery momentum, and China's super large market advantage will continue to show, The industry will further consolidate the foundation for economic recovery.

(Source: China Printing and Dyeing Industry Association)