Analysis of home textile industry operation (H1,2017)

by+Shen+Da

From January to June of 2017， according to the National Bureau of Statistics， 1，910 home textile enterprises above designated size achieved main business income of 136.979 billion yuan， an increase of 6.59% over the same period last year， and the growth rate has gradually improved since this year. Also the total profits reached 7.306 billion yuan， a slight increase of 0.29%. Customs statistics showed that the accumulative exports of Chinas textile products registered 18.345 billion US dollars， an increase of 0.5%， and the growth increased by 4.54 percentage points compared with the same period last year. So the overall operation of home textile industry was in a steady recovery， with the following features. （See Table 1）

Decline in investment gradually narrowed

According to the National Bureau of Statistics， from January to June this year， the actual completed investment of home textile industry amounted to 32.854 billion yuan， down by 5.5% year on year， and the decline has gradually narrowed since February this year， which indicated that enterprises were adapt to the status of the industry， and continued to actively make adjustment to be better. Among them， the actual completed investment achieved 14.512 billion yuan in bedding industry， down by 10.6% year on year； 5.09 billion yuan in towel industry， down by 10.63%， with a narrowed decline； 2.88 billion yuan in fabrics industry， up by 14.39% year on year.

Operating costs continued to increase

From January to June this year， the 1，910 abovescale enterprises achieved main business cost 120.242 billion yuan， an increase of 6.67%， higher than that of main business income， the National Bureau of Statistics said. The ratio of three costs was 6.27%， an in- crease of 4.18% over the same period last year. Among them， the ratio of three costs was 6.73% in bedding industry， an increase of 1.77%； 6.39% in fabric industry， up by 5.34%， higher than that of previous few months； 4.34% in towel industry， with the largest growth of 10.83% over the same period last year.

The profits was affected by the rising costs and fees， so the ratio of profits to cost was generally less than last year. In the first half this year， the ratio of profits to cost was 5.67% in the 1，910 above-scale enterprises， down by 6.3% over the same period last year. The ration in bedding industry and towel industry was 5.76% and 5.63% respectively， with a large decline of 0.5 percentage point and 0.61 percentage point over the same period last year. While the cost share of home textile industry in main business of per-hundred yuan has been higher than that of nationals above-scale industries， and its upward trend made profit margin smaller.endprint

Quality of operation continues to improve

By strengthening management and improving technology， the running efficiency and per capita output continued to rise. In the first half this year， total assets turnover of 1，910 enterprises was 2.37， up by 1.18% over the same period last year. Current asset turnover was 5.23， a slight increase of 0.68%. Finished goods turnover was 6.78， up by 3.3 compared with the same period last year.

From January to June， the date of clusters and en- terprises showed that per capita main business income and per capita profit were both higher than that of the same period last year.

Operation in the second quarter better than the first quarter

Since the second quarter this year， operational growth rate of the industry has generally improved. In the second quarter， the above-scale enterprises achieved revenue 76.006 billion yuan， which increased 12.08% year on year， and increased 11.62 percentage points compared with the first quarter this year. Total profits reached 4.007 billion yuan， an increase of 6.14%， and up by 12.14 percentage points over the first quarter. （See Table 2）

Sub industries also generally showed this feature. Especially towel industry were more prominent， whose main business income growth of above-scale enterprises was -20.9% in the first quarter and 12.0% in the second quarter this year； total profit growth was-32.32% in the first quarter and 10.99% in the second quarter.

As the national economic growth rate gradually improved， and from the information feedback of profession market and enterprises， the industry gradually enters the peak season and the benefits of enterprises will also be improved. Its expected that the industrial development in second half will remain stable and steady to make a better performance.endprint