Analysis Report On Monthly Gross Profit And Net Profit Of Cotton Textile In The First Quarter At Low Levels

　　 1、 Cotton textile industry - obvious pressure on economic operation

According to the data of the National Bureau of Statistics, the operating revenue of cotton textiles above designated size in the first quarter increased by 0.2% year on year, 0.9 percentage points less than the cumulative growth rate in January and February. With a low base last year, the total profit increased by 28.9% year on year, 20.3 percentage points lower than the cumulative growth rate in January and February. The profit margin of cotton textile in the first quarter was only 1.52%, 0.36 percentage points higher than that in the same period of last year, and 0.13 percentage points higher than the cumulative profit margin in January and February. Due to the low base, compared with the same period of last year, the profit margin was slightly improved due to the large margin growth, but the margin was limited. In the first quarter, the gross profit rate of cotton textile was less than 10%, only 8.7%. Compared with the industry, manufacturing industry and textile industry, the profit rate of 1.52% of operating income of cotton textile was significantly weaker, the asset liability ratio and the number of days of inventory turnover of finished products were higher, and the economic operation of the industry was under significant pressure.

　　 （1） Operating revenue - cotton spinning and cotton weaving slowed down

In the first quarter, the operating revenue of cotton textiles above designated size increased by 0.2% year on year, 0.9 percentage points less than the cumulative growth rate in January and February, of which the growth rate of cotton yarn and cotton weaving was 0.3% and 0.1% respectively, 0.9 and 1.1 percentage points less than the cumulative growth rate in January and February, both of which slowed down.

　　 （2） Total profit - low base leads to significant year-on-year growth

In the first quarter, the total profit of cotton textile above designated size increased by 28.9% year on year, mainly due to the low base in the same period last year. The total profit of cotton spinning and cotton weaving increased by 45.3% and 14.6% year on year, respectively. The cumulative growth rate of cotton spinning was 154.8 percentage points lower than that of January and February, and the cumulative growth rate of cotton weaving was 8.1 percentage points higher than that of January and February.

　　 （3） Profit rate of operating income - it is more difficult to make profits by continuing the word "1"

In the first quarter, the profit margin of cotton textile operating revenue above designated size was 1.52%, 0.13 percentage points higher than the cumulative profit margin in January and February. The profit margin of cotton yarn and cotton weaving was 1.22% and 2.09% respectively. The cumulative profit margin of cotton yarn was 0.27 percentage points higher than that of January and February, and the cumulative profit margin of cotton weaving was 0.14 percentage points lower than that of January and February.

　　 （4） Deficiency - spinning and weaving are expanded

In the first quarter, the deficit of cotton spinning and weaving above designated size was 31.4%, 1.3 percentage points higher than the cumulative deficit in January and February. Among them, the deficit of cotton spinning and cotton weaving was 32.3% and 30.1% respectively, 1.0% and 1.7% higher than the cumulative deficit of January and February respectively.

　　 （5） Export delivery value - increased year on year, and the growth rate slowed down

In the first quarter, the export delivery value of cotton textiles above designated size increased by 8.2% year on year, 2.2 percentage points lower than the cumulative growth rate in January and February, of which the export delivery value of cotton yarn and cotton weaving increased by 11.6% and 6.7% year on year respectively, 6.2 and 0.8 percentage points lower than the cumulative growth rate in January and February, respectively.

　　 （6） Product output - both yarn and cloth output grew faster year on year

According to the data of the National Bureau of Statistics, the output of cotton textile yarn above designated size in the first quarter was 5.65 million tons, an increase of 8.11% year on year, 4.04 percentage points faster than the cumulative growth in January and February, of which cotton yarn, cotton blended yarn and chemical fiber yarn increased by 8.65%, 4.45% and 8.95% respectively, and the mass production of cotton textile fabric above designated size was 7.45 billion meters, an increase of 3.40% year on year, The cumulative growth rate was 2.56 percentage points higher than that in January and February.

　　 2、 Operation prospect

The United States government has abused tariffs to provoke economic and trade frictions, and the damage to the world economy is emerging. The World Economic Outlook Report recently released by the International Monetary Fund lowered the world economic growth forecasts for 2025 and 2026 to 2.8% and 3% respectively from 3.3% predicted in January this year. The tariff policy of the United States has exacerbated the external uncertainty. The Political Bureau meeting held in April pointed out that it is necessary to coordinate domestic economic work and international economic and trade struggle, accelerate the implementation of more active and promising macro policies, make good use of more active fiscal policies and moderately loose monetary policies, take multiple measures to help enterprises in difficulty, strengthen financing support, and accelerate the integration of domestic and foreign trade. At present, China's cotton textile industry chain is still highly dependent on foreign countries. Cotton spinning and weaving are at the upper reaches of the industry chain. The impact on exports to the United States has a process from the terminal to the cotton textile sector. Cotton textile enterprises should pay close attention to the trend of external economic and trade situation and the trend of domestic macro policies, Respond to the uncertainty of the rapid changes in the external environment with the certainty of the development of self height quality.

(Source: China Cotton Association)