Brief Analysis Of The Economic Operation Of The Industrial Textiles Industry In The First Half Of 2019

In the first half of 2019, China's economy was faced with a complex development environment, with external trade protectionism and unilateralism against the wind, internal structural and cyclical contradictions highlighted, transformation and upgrading climbing over the ridge, and downward pressure on the economy. The industry textile industry has maintained a smooth operation to overcome all kinds of unfavorable factors. The industrial added value has increased by 7.6%. The total business revenue and total profit of the enterprises above Designated Size have increased by 6.32% and 1.49% respectively. The growth rate of the three indicators is basically the same as that of the same period last year. According to the survey of China Textile Industry Association, the prosperity index of member enterprises in the first half of the year is 69.5, down 8.4 from the same period last year. It is an objective reflection of the complex economic environment, but it is still in the relatively prosperous section.

1. Production keeps steady growth.

According to the research of the middle class association, the demand index of enterprises in the first half of the year was 49.7, the first time was lower than that of the ups and downs line. 34% of the enterprises surveyed indicated that the market demand decreased to varying degrees, 6.5% of the enterprises indicated a larger decline, 1/3 of the enterprises indicated that the market demand was basically flat, and 1/3 of the enterprises thought the demand increased. But the production index of the industry still maintained a high level of 66.2, and the actual situation is better than the industry's judgment of demand.

According to the data of the National Bureau of statistics, the production of Nonwovens for Enterprises above Designated Size reached 2 million 162 thousand tons, up 11.41% over the same period last year, indicating that nonwoven fabrics are important raw materials for industrial textiles, and their demand in various fields is still very large. In terms of exports, China exported 497 thousand tons of non-woven fabrics in the first half of this year, an increase of 6.88% over the same period last year. In the first half of the year, the output of cord fabric of Enterprises above designated size was 295 thousand tons, down 9.83% from the same period last year. Cord fabric is a traditional product in industrial textiles. The application market of tire cord is very simple. It is subject to the downturn in the automotive market. In recent years, the production of tire cord cloth is basically in a state of contraction.

Two, steady economic returns.

According to the National Bureau of statistics, in the first half of the year, the total business revenue and profit of Enterprises above Designated Size in the industrial textile industry were 118 billion 770 million yuan and 6 billion 20 million yuan respectively, representing an increase of 6.32% and 1.49% compared with that of the previous year. The profit margin of the industry was 5.07%, a decrease of 0.24 percentage points. From the perspective of profit composition, the gross profit margin of the industry is 14.07%, a 0.5 percentage point increase over last year. The proportion of three fees is basically the same as that of last year, and the operating profit margin has increased by nearly 0.5 percentage points. The reason for the decline of the industry's profits is not the operating factor, but the abnormal change of extra business income and expenditure.

In the first half of the year, the deficit of the industry was 15.52%, and the deficit of the deficit companies increased by 20.73%. The results of the association also confirm the relevant data. In the first half of the year, the industry's income index is 61, the profit index is only 52.6, the output index is 66.2, but the finished product price index is only 44.2. The output growth is higher than the income, and the income growth rate is higher than the profit. The growth in the first half is mainly driven by the output. In the same period, the tax and fee index of enterprises is only 44.2, which is in a decreasing range, indicating that the policy of reducing taxes and lowering taxes has really benefited enterprises, and also ensured that enterprises maintain relatively good performance under relatively difficult conditions.

In terms of sectors, the main business revenue and total profit of the cable and cable industry increased by 15.62% and 17.01% respectively, with a profit margin of 4.94%, at a relatively low level. The main business income and profit of other industrial textiles increased by 5.17% and 3.38% respectively, and the gross profit rate increased by nearly 1 percentage points, the highest level in the industry. The main business income of nonwovens increased by 6.84%, but the total profit decreased by 5.91%, and the profit margin was 5.03%. Profitability was at a relatively low level in recent years. The main business revenue of textile belt and tire cord industry increased by 2.24%, total profit decreased by 3.73%, gross profit margin decreased by 0.7 percentage points, the cost structure of industry fluctuated more sharply, profit rate was only 3.44%, which was at the lowest level in industry. In recent years, the overall economic benefit of this field was not satisfactory due to the downturn of the downstream industry of tire cord cloth.

Three, small export growth

In the first half of this year, China's industrial textiles industry exported a total of 13 billion 130 million US dollars, compared with the same period last year, an increase of US $1.23%. The impact of Sino US trade friction on the industry's exports has been apparent in 2019. Exports to the US in the first half of the year amounted to 2 billion 40 million US dollars, down 3.05% from the same period last year, especially for products already subject to tariffs.

In the first half of the year, the 56 chapter (non-woven and special yarns) exports to the United States decreased by 17.65%. The 59 chapter (Industrial Textiles) exports to the United States decreased by 28.6%. The two chapter products exported to the world increased by 0.7% and -1.61% respectively. In the first quarter, in the US import market, the share of China's products in the two chapters was significantly reduced by 6 percentage points. However, the share of the United States in the export market of the above two chapters is not large, and the impact of the reduction in US exports on total exports is basically controllable.

For products not included in the tariff catalogue, such as nonwovens protective clothing, tents, wipe and disposable hygiene products, exports to the world increased by 10.83%, 6.04%, 7.47% and 16.09% respectively. The competitive advantage of Chinese products in the world is obvious. With the expansion of Sino US trade frictions, the pressure of industrial export growth will increase in the second half of this year.

From the export market, Asia is the largest export area of industrial textiles in China, accounting for 45.7% of the total, 17.7% and 17.2% of the European Union and North America, and only 6.2% of Africa. From the national perspective, the United States is the largest export market in China, accounting for 15.58% of the total, while Japan and Vietnam share second and third respectively, accounting for 6.53% and 6.02% respectively.

Four. Annual forecast

In the first half of 2019, the industry textile industry was able to overcome all kinds of unfavorable factors and keep stable operation. It is expected that the situation will continue for the first half of the year. The production and sales of the main products will continue to grow at medium and high speed, and the profits of the industries will increase at a low speed.