Textile Industry In 2020: Economic Operation Trend

In 2020, facing the severe and complex domestic and international environment, especially the severe impact of the new crown pneumonia epidemic, the textile industry made every effort to ensure the supply of important epidemic prevention materials, steadily promoted the resumption of work and production, and effectively served the overall situation of epidemic prevention and control and the needs of national economic and social development based on a strong industrial chain and supply chain system. At the same time, the textile industry persisted in deepening the transformation and upgrading, and worked hard to resolve the risk impact brought by the epidemic situation. The decline rate of the main operation indicators continued to narrow, the economic operation situation recovered steadily, and the export trade achieved an over expected growth driven by epidemic prevention materials. 2021 is the first year of the new development cycle of China's "14th five year plan". The development situation faced by the textile industry will still be complex. The foundation for sustainable recovery and improvement still needs to be consolidated. It is still facing many tests to open a new stage of high-quality development in the "post epidemic era".

Industry prosperity keeps expanding

The growth rate of production rose steadily

Since 2020, the overall prosperity of the textile industry has been expanding, and the utilization rate of production has been improved quarter by quarter. According to the survey data of China Textile Industry Federation, the prosperity index of textile industry in the first quarter of 2020 will drop below the critical point of 50 due to the impact of the epidemic situation. Since the second quarter, the prosperity index has risen to above 50, and the fourth quarter is 61.3, which is a good level in recent years, indicating that the business confidence of enterprises is steadily improving. According to the data of the National Bureau of statistics, in 2020, the capacity utilization rate of textile industry and chemical fiber industry will be 73.1% and 80.5%, respectively, which will rise by 0.7% and 1.4% compared with the previous three quarters, but will decrease by 5.3% and 2.7% respectively compared with that in 2019.

The production situation rose steadily. According to the data of the National Bureau of statistics, the industrial added value of Enterprises above Designated Size in the textile industry will decrease by 2.6% year-on-year in 2020, 5% lower than that in 2019, and 2% and 23% lower than that in the first three quarters of 2020 and from January to February at the beginning of the year. Among the main links of the industrial chain, the production of industrial textiles industry, driven by epidemic prevention materials, achieved a good growth, with the industrial added value increasing by 54.1% year-on-year in 2020; the industrial added value of chemical fiber industry and household textile industry increased by 2.2% and 1.1% respectively, realizing the transformation from negative to positive.

Domestic sales continued to improve

Export growth exceeded expectations

At the beginning of the outbreak, the domestic consumption of textile and clothing products dropped sharply in the first quarter due to the closure of physical commerce, isolation at home and reduction of social activities. Since the second quarter, with the orderly recovery of economic life, residents' consumption activities have become more and more active. With the good support of various national consumption promotion policies, the domestic demand market sales of the textile industry have improved quarter by quarter. According to the data of the National Bureau of statistics, in 2020, the retail sales of clothing, footwear, knitwear and textiles of units above the national quota will decrease by 6.6% year-on-year, and the decline rate will be narrowed by 5.8% compared with the previous three quarters; the scale of online retail sales will recover more rapidly, and by the end of July, the retail scale of online wear goods in China has exceeded the level of the same period of last year, with a year-on-year growth of 5.8% and a growth rate of 2.5% compared with the first three quarters.

Driven by the demand for epidemic prevention materials procurement, the export scale of textile industry has reached a new high since 2015. According to the customs express data, China's textile and garment exports in 2020 will reach 291.22 billion US dollars, a year-on-year increase of 9.6%, 11.1 percentage points higher than that of the previous year. Among them, the export amount of textiles was 153.84 billion US dollars, a substantial increase of 29.2% over the same period of last year, and the proportion of the total export volume of the whole industry increased from 44.3% of the previous year to 58.2%; the situation of clothing export in the first half of the year was more severe, but in the second half of the year, with the restart of overseas economy, China's textile industry system and the stability of the supply chain showed obvious advantages, and the clothing export gradually improved until the end of the year The year-on-year decline in export volume has narrowed to 6.4%, and the export volume has been growing positively since August.

Sustainable recovery of enterprise benefits

The operating pressure is still outstanding

With the gradual recovery of domestic and foreign market demand, as well as the significant effect of national large-scale tax reduction and fee reduction policies and measures to help enterprises, the economic benefits of textile enterprises showed a trend of steady repair and quarterly improvement after a sharp decline at the beginning of the year. According to the data of the National Bureau of statistics, in 2020, the operating revenue of textile enterprises above Designated Size in China will reach 4519.06 billion yuan, with a year-on-year decrease of 8.8%, 3.3% and 20.7 percentage points lower than those in the first three quarters and January February; the total profit is 206.47 billion yuan, with a year-on-year decrease of 6.4%, and the decrease rate is 5.7 and 46.9 percentage points lower than that of the first three quarters and January February. The profit margin of operating income of textile enterprises above designated size was 4.6%, which was significantly improved from the level of 2.2% at the beginning of the year, and exceeded 0.2% in 2019. Among them, the profitability of the industrial and household textiles industry was outstanding, with the total profit increased by 203.2% and 14.7% respectively over the same period of last year. The profit margin of operating income was 11.4% and 5.6% respectively, which was in the forefront of all links of the industrial chain. With the benefit recovery, the operation quality of textile enterprises has improved compared with the beginning of the year, but the operation pressure is still great. In 2020, the loss of textile enterprises above Designated Size will be 22.7%, and the loss of loss making enterprises will increase by 26.8% year on year, which will be reduced by 13.6% and 2.7% respectively compared with the end of February; the turnover rate of total assets and finished products will be 1.1 times / year and 13.2 times / year, respectively, slowing down by 11.6% and 10.9% respectively; the proportion of three fees will be 7%, increasing by 0.2 percentage points over the previous year.

Uncertainties remain to be resolved

Start a new journey of high quality development

In 2020, the textile industry has effectively overcome the major impact of the new crown epidemic, and the main economic operation indicators have rebounded and improved, which fully reflects the advantages of complete industrial system and stable supply capacity, and plays an important role in supporting the national economic and social development and ensuring the coordinated operation of the international textile supply chain. In 2021, the development situation faced by the textile industry will still be complex. On the one hand, the global epidemic situation has not been completely alleviated, and the risk factors such as the continuous downturn of foreign demand and the rising risk of trade environment still exist. The adverse impact on the stability of the industrial chain supply chain has yet to be eliminated, and the textile industry is still facing greater development pressure in the international market. On the other hand, the textile industry is in the stage of deep adjustment and transformation. While dealing with the complex external situation, it still needs to resolve the difficulties such as the increase of comprehensive costs, the arduous task of environmental protection, and the aggravation of market competition, so as to maintain the smooth operation and face many tests. However, China's macro-economy has taken the lead in achieving positive growth in 2020, and the total economic volume has risen to a level of one billion yuan for the first time. Employment and people's livelihood have been effectively guaranteed in the epidemic situation, demonstrating the strong resilience of economic development. Under the solid support of the "six stability" and "six guarantees" work, and based on the construction of the "double cycle" new development pattern with domestic large circulation as the main part, the strong and diversified domestic demand market will endow the textile industry with sufficient development space and rich innovation source power, and become the core engine for the sustainable recovery of the textile industry. On the whole, based on the good industrial foundation for the basic realization of the goal of becoming a powerful country, China's textile industry will still have the conditions to steadily start a new journey of high-quality development in the "14th five year plan" period in 2021.

The textile industry will actively implement the decision and deployment of the CPC Central Committee and the State Council, build a new development pattern based on the new development stage, continue to deepen the structural reform of the supply side, accelerate the transformation and upgrading of the industry, take multiple measures to improve the adaptability of the supply system to the domestic market, strengthen the independent and controllable ability of the supply chain of the industrial chain, actively respond to and resolve various risks and challenges It is necessary to maintain the steady development of the economy, ensure the smooth start of the 14th five year plan, and make due contributions to better serve the new strategic requirements of national economic and social development during the period of the 14th five year plan.