Textile industry started "14-5" the first shot

"In the face of the complex external situation, the textile industry has shown strong resilience and vitality, and consolidated its advantages in the stable operation of a complete and high-quality modern industrial system. The 14th Five-Year Plan has basically got off to a good start, making positive contributions to the steady growth of the national economy, ensuring people's livelihood, promoting employment and preventing risks." Recently, Sun Ruizhe, president of China National Textile And Textile Association, pointed out in an interview with reporters that in 2022, the external development environment will become more complex and severe, and the textile industry still needs to actively cope with and resolve various risks and challenges, strive to keep the economic situation basically stable, and realize the steady improvement of development quality. We will make new contributions to the development goals of stabilizing the macro economy, continuously improving people's livelihood and maintaining overall social stability.

• The industry prosperity maintains the expansion trend

Recently, the survey data of China National Textile and Apparel Association showed that in the four quarters of 2021, the textile industry climate index continued to stay in the expansion range of more than 50, with the highest value of 65.4 in the second quarter and the lowest value of 57.1 in the first quarter. In the fourth quarter, for the consumer market continues to recover, electricity leak impact mitigation, driven by the factors such as the textile industry climate index from 58.7 to 62.3 in the third quarter, as the highest level since 2018, showed that with the epidemic prevention and control and the production and marketing situation stability returns, overall improve business confidence, industry to further consolidate the basis of economic recovery.

According to the National Bureau of Statistics, the capacity utilization rate of textile industry and chemical fiber industry will be 79.5% and 84.5% respectively in 2021, 6.4 and 4 percentage points higher than that in 2020. In 2021, the industrial added value of enterprises above designated size in the textile industry increased by 4.4% year-on-year, 7 percentage points higher than that in 2020. Taking 2019 as the base period (the same below), the industrial production scale increased by 0.8% on average over the two years, surpassing the pre-EPIDEMIC level. Chemical fiber, industrial, home textile, textile machinery and other industries achieved positive growth on average over the past two years.

• Domestic demand and foreign trade continued to recover performance gratifying

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In 2021, China's national economy will continue to recover, and the consumption potential will be released steadily driven by development. The domestic textile and garment market will overcome the impact of the epidemic and extreme weather, and show a trend of sustained recovery driven by the good policy environment of national livelihood protection, consumption promotion and all kinds of holiday consumption. According to the National Bureau of Statistics, in 2021, the retail sales of clothing, shoes, hats and needles above designated size increased by 12.7% year on year, up 19.3 percentage points from 2020, with a two-year average growth of 2.6%. Online consumption continued to play a strong role in driving the domestic market. The retail sales of online wear goods increased by 8.3% year on year, 2.5 percentage points higher than in 2020, and an average growth of 7% over the past two years

n 2021, the export of China's textile industry achieved rapid growth, with the growth rate significantly exceeding the pre-epidemic level and the total export volume hitting a record high, due to the special conditions of global logistics and flow of people caused by the epidemic. Fully show our complete textile industry chain has the advantage of stable supply. China's total textile and apparel exports reached $315.46 billion in 2021, up 8.3 percent year-on-year and up 7.8 percent on average over the past two years, according to Chinese customs data. Among them, the export situation of clothing picked up obviously, which played a prominent role in supporting the export growth of the industry. The annual export volume reached 170.26 billion US dollars, with a year-on-year growth of 24% and a two-year average growth of 6.1%, the best growth level since 2015. While the export value of masks and protective clothing decreased by us $48.2 billion and 76.1% year on year, the export value of textiles still reached US $145.2 billion. Although the export value decreased by 5.6% year on year, the average growth rate of the two years still reached 9.9%

• Improved efficiency of textile enterprises stimulates investment confidence

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According to the Data of the National Bureau of Statistics, in 2021, the operating revenue of 34,000 textile enterprises above designated size in China reached 5.174.94 billion yuan, up 12.3% year on year, and the growth rate picked up 21.1 percentage points compared with 2020, with an average growth of 1.2% in two years. The total profit reached 267.68 billion yuan, up 25.4% year on year, 31.8 percentage points higher than that in 2020, and an average growth of 8.3% in two years. Operating revenue margin was 5.2%, up 0.6 percentage points from 2020 and the highest since 2018. More than 80% of links in the whole textile industry chain have significantly improved their benefits, and more than half of them have increased their profits by more than 50% year-on-year. Affected by rising commodity prices, the benefits of the chemical fiber industry at the front of the industrial chain are particularly prominent. In 2021, the total profit increased by 149.2% year on year, ranking the first in the whole industrial chain. The two-year average growth rate reached 45.5 percent, significantly higher than the pre-epidemic level. The operating efficiency and capital turnover of textile enterprises were basically stable. The turnover rate of finished products of enterprises above designated size was 13.6 times per year, slightly slowing down 0.7% year on year. Total asset turnover rate was 1.2 times/year, 5.5% faster than last year; The proportion of fees, fees, and other expenses was 6.6 percent, down 0.4 percentage points from 2020.

Driven by demand recovery and supported by policies to reduce the burden, the economic benefits of textile enterprises have steadily improved.

The restoration of business efficiency drives the gradual recovery of investment confidence. Data from the National Bureau of Statistics show that in 2021, the completed fixed asset investment of China's textile industry, chemical fiber industry and clothing industry will increase by 11.9%, 31.8% and 4.1% year-on-year respectively, with the growth rate picking up by 18.8, 51.2 and 36 percentage points compared with the same period last year. Among them, leading backbone enterprises in the textile and chemical fiber industries have actively invested in upgrading technology and equipment, extending industrial chains and adjusting regional distribution. The average growth rate of investment in the past two years has been 2.1% and 3.1% respectively, and the scale of investment has exceeded the pre-epidemic level.

Looking forward to 2022, the economic operation of the textile industry still has the conditions and foundation for stable and sound development, but the complexity and severity of the development situation can not be ignored. Sun ruizhe believes that China's macroeconomic aggregate has exceeded 110 trillion yuan, and the long-term sound fundamentals and favorable conditions for building a new "double cycle" development pattern have not changed. With the steady progress of the national "six stability" and "six guarantee" work and the release of a series of policies to protect people's livelihood, promote consumption and expand domestic demand, the textile industry will be based on the strong and diversified domestic demand market, constantly consolidate the advantages of advanced manufacturing, actively grasp the new fashion opportunities such as green and low-carbon transformation, "ice and snow economy" and "national tide". In the domestic market to obtain broad space for development and rich driving force of innovation.

Fend off said: "the textile industry facing the international cooperation on environment increasingly complex, but there is also a new development opportunity, the regional comprehensive economic partnership agreement (RCEP) effect and high standards continue to promote free trade area network construction, will further mining area for the textile industry market potential and build a multinational resource allocation system to provide favorable conditions. In addition, the global epidemic is still evolving, and the economic recovery is facing multiple pressures such as weakening employment momentum and high inflation. The continued tightening of monetary policy expectations in developed economies will exert negative constraints on market spending power and consumer confidence."

"The international textile production supply chain is gradually recovering, the international procurement pattern may be adjusted, the situation of export orders flowing to China may change, and the uncertainty of the export situation is significantly increased." Sun ruizhe also pointed out that in the complex international economic situation, China's domestic demand market, although stable fundamentals, but also facing the market consumption willingness to weaken, online retail channels gradually passed the dividend release period and other tests. In addition, the high fluctuation of commodity prices, uneven recovery of various links in the textile industry chain, and obvious differentiation of the development of large, small and medium-sized enterprises still need to be resolved, and enterprises' market expectations and confidence in development remain stable.