Printing And Dyeing Industry: In The First Five Months, The Operation Is Recovering, And The Export Is Still Facing Greater Competitive Pressure

In May 2021, driven by the sustained recovery of domestic and foreign market demand, the economic recovery trend of China's printing and dyeing industry is further consolidated. From January to may, the output scale of printed and dyed fabrics increased significantly compared with that before the epidemic, the quality and efficiency of the industry operation was accelerated, and the export continued to grow. However, the trend of "volume rising and price falling" has not been reversed, and the industry export is still facing greater competitive pressure.

　　 Production continued to maintain a rapid growth trend

According to the data of the National Bureau of statistics, from January to May of 2021, the output of printing and dyeing enterprises above designated scale will be 22.712 billion meters, with a significant increase of 27.55% over the same period of 2019, and 15.47% higher than that of the same period in 2019. Since 2021, with the gradual alleviation of the contradiction between supply and demand at home and abroad, the production situation of China's printing and dyeing industry is good, and the output of printed and dyed fabrics in the first five months of this month is more than 5 billion meters. From the perspective of domestic sales, from January to may, the retail sales of clothing, footwear, knitwear and textiles above the quota increased by 39.1% year-on-year; From the perspective of export, from January to may, China's total export of textiles and clothing increased by 17.3% year-on-year, of which the export volume of clothing increased by 48.3% year-on-year. With the gradual recovery of domestic and foreign consumer demand for textiles and clothing, the production of printing and dyeing industry achieved rapid growth.

　　 The operation quality has been improved continuously, and the pressure of enterprise capital turnover tends to ease

According to the data of the National Bureau of statistics, from January to may 2021, the proportion of three fees of printing and dyeing enterprises above designated scale is 7.14%, which is 0.14% lower than that of the same period last year. Among them, cotton printing and dyeing enterprises are 6.84% and chemical fiber printing and dyeing enterprises are 9.23%; The turnover rate of finished products was 7.63 times / year, with a year-on-year increase of 19.72%; The turnover rate of accounts receivable was 3.58 times / year, with a year-on-year increase of 15.28%; The turnover rate of total assets was 0.41 times / year, with a year-on-year increase of 16.32%. Compared with the same period in 2019, from January to May of 2021, the proportion of three fees of printing and dyeing enterprises above designated size increased by 0.29 percentage points, the turnover rate of finished products decreased by 13.74%, the turnover rate of accounts receivable increased by 5.25%, and the turnover rate of total assets decreased by 9.39%. Although the turnover rate of finished products and the turnover rate of total assets are still significantly different from those before the epidemic, the overall situation shows a recovery trend, and the turnover rate of accounts receivable has achieved positive growth for the first time compared with the same period in 2019, which indicates that as the production and operation of enterprises are gradually on the right track, the pressure on enterprise capital turnover is gradually alleviated.

Table 1   Main operation indexes of printing and dyeing enterprises above designated scale from January to may 2021

　　 Economic benefits accelerate repair

From January to May of 2021, the business income of printing and dyeing enterprises above designated size is 109.011 billion yuan, with a year-on-year growth of 24.01%, which is 3.21 percentage points higher than that of the whole textile industry; The operating cost was 95.372 billion yuan, up 22.99% year on year, accounting for 87.49% of the business income; The total profit was 4.187 billion yuan, up 51.05% year on year; The profit margin of cost and expense was 4.06%, increased by 0.76% year on year; The profit margin of sales was 3.84%, up 0.69% year on year; The export delivery value reached 14.799 billion yuan, up 17.62% year on year. Compared with the same period in 2019, from January to May of 2021, the operating revenue of printing and dyeing enterprises above Designated Size will decrease by 2.00%, the total profit will decrease by 11.10%, the profit margin of cost and expense will be reduced by 0.42%, the profit margin of sales will be reduced by 0.39%, and the export delivery value will be reduced by 10.85%.

Among 1548 printing and dyeing enterprises above Designated Size, 473 were in loss, accounting for 30.56% of the total loss, which was 11.15% lower than that of the same period in 2019, and 5.76% higher than that in the same period in 2019; The total loss of loss making enterprises was 1.039 billion yuan, a year-on-year decrease of 32.04%, an increase of 20.97% compared with the same period in 2019.

Compared with January April, the year-on-year growth rate of operating revenue and total profit of printing and dyeing enterprises above designated scale increased by 2.48 and 7.44 percentage points respectively, sales profit rate increased by 0.25 percentage points, and loss area decreased by 1.63 percentage points, indicating that the enterprise's profit recovery was accelerated.

Table 2   Main economic indicators of printing and dyeing enterprises above Designated Size from January to may 2021

　　 Export continued to grow, and the trend of "volume rising and price falling" has not been reversed

According to the statistics of HS8 code of China Customs, from January to May of 2021, the export volume of eight categories of printing and dyeing products was 11.147 billion meters, with a year-on-year increase of 40.74%; The export volume reached 10.957 billion US dollars, up 39.39% year on year; The average export unit price was 0.98 USD / m, down 0.53% year on year. Compared with the same period in 2019, the growth rates of export volume, export value and average export unit price were 3.63%, - 1.36% and - 4.81% respectively. In the first five months of 2021, the export volume of eight major categories of printing and dyeing products all achieved positive growth compared with the same period in 2019, but the growth rate of export value fluctuated, the average export unit price showed negative growth, the industry "volume up and price down" situation has not been reversed, and the export market competition of printed and dyed fabrics is fierce.

Table 3   Export of eight categories of printing and dyeing products from January to may 2021

Overall, since 2021, China's printing and dyeing industry is gradually getting out of the impact of the epidemic and achieving sustained recovery. The economic indicators are significantly improved compared with the previous year, and the foundation for stable development of the industry is constantly consolidated. It is expected that the printing and dyeing industry will continue to recover in the second half of the year. In the process of recovery, industrial enterprises should strengthen technological innovation and product development, change the mode of industrial development, and promote the transformation of the industry from scale advantage to quality benefit.

(source: China printing and dyeing industry association)