Domestic Textile Industry: Nearly 20% Of The First Half Of The Year, The Loss Efficiency Has Declined Significantly.

Reporter recently from China textile industry The Federation was informed that the overall efficiency of the textile industry declined in the first half of this year compared with the same period last year due to the negative external factors and the pressure of the development of the enterprises. The total profit of textile enterprises above designated size decreased by 1.9% compared with the same period last year, and the loss of enterprises reached 18.4%, and the deficit of loss making enterprises increased by 124.1% over the same period last year.

Analysts pointed out that in the second half of this year, textile enterprises will still be in a difficult position. The overall efficiency of the industry will decline sharply compared with that of last year, and the deficit and loss will expand. More medium, small and micro enterprises will face the risk of being eliminated.

Benefits decline significantly

Since 2012, the production efficiency of textile industry has continued to increase, and labor productivity of Enterprises above designated size increased by 12.7% over the same period in 1-6. However, due to the negative effects of external factors and the pressure of enterprise development, the overall efficiency of the textile industry has declined compared with the same period last year.

Sun Huaibin, a spokesman for China Textile Industry Federation, revealed that in the first half of this year, the total profit of textile enterprises above Designated Size dropped by 1.9% compared to the same period last year, and the sales profit margin was 4.5%, down 0.5 percentage points from the same period last year. The loss of enterprises reached 18.4%, and the deficit of loss making enterprises increased by 124.1% over the same period last year. In different sectors, cotton spinning and chemical fiber are affected by the price fluctuation of raw materials, and the profits of the industries are all showing a negative growth trend. In 1-6, the chemical fiber industry dropped by 52.3%, and the profits of 105 key cotton textile enterprises dropped by 52.1%.

In the downturn of the industry, the medium-term performance of listed companies is also not optimistic. China clothing (000902) operating income in the first half of this year was 675 million yuan, down 13.02% compared with the same period last year; net loss of shareholders attributable to listed companies was 18 million 905 thousand and 400 yuan. Roley home textiles (002293) semi annual report shows that the net profit attributable to shareholders of listed companies is 134 million yuan, down 17.7% compared with the same period last year. Huafang textile (600273) reported that the company achieved operating income of 733 million yuan, an increase of 2.28% over the same period last year. However, the operating cost was as high as 788 million yuan, which seriously engulfed company profits, resulting in a loss of 33 million 760 thousand yuan in net profit.

Listed companies generally say that the domestic and international market prices of cotton are seriously upside down, and the cost of various labor costs is rising, leading to high production costs. In addition, the relatively scarce labor force in the economically developed areas in the eastern part of the country has led to a lower production opening rate and an impact on the production capacity of enterprises.

The future is not optimistic.

At present, the pressure factors that affect the development of the textile industry still exist. Sun Huaibin said: "labor costs, capital costs increase year by year, energy prices continue to rise, the pressure of small and medium enterprises in the textile industry is also increasing."

Employment of textile enterprises Production factor cost According to the investigation, the per capita wages of textile industry increased by about 15% in the first half of the year. According to the statistics, domestic fuel power prices increased by 3% in the 1-7 month, and the problem of raising funds for financing is still not completely solved. The cost of financing is still high. In the first half of the year, the interest expense of enterprises increased by 29.5% over the same period last year, which is 19.8 percentage points higher than that of the same period.

Coupled with the continued downturn in external demand and the fluctuation of raw material prices, the overall operation of the industry still faces many risks. Sun Huaibin said that further deepening industrial restructuring, accelerating transformation of development mode, and resolving various external risks from the root cause are still fundamental tasks facing the whole industry.