Economic operation of printing and dyeing industry in the f irst half of 2022

Edited by Zhong Mengxia

In the first half of 2022, the development environment of printing and dyeing industry is more complicated and severe. Th e conf lict between Russia and Ukraine continues to lead to a sharp rise in energy prices such as oil and natural gas, and printing and dyeing enterprises are under great pressure on the cost side; Th e frequent spread of domestic pandemics has adversely aff ected the normal production and operation of the industry, and at the same time, it has restricted residents' conf idence in consumption, and the pulling eff ect of consumption on the economic growth of the industry has weakened. Under the inf luence of multiple factors, the economic operation of printing and dye—ing industry was under pressure in the f irst half of the year. With the eff ective control of the pandemic rebound and the introduction of a package of policies and measures at the national level and local governments to stabilize growth,protect employment and promote consumption, the industry has overcome multiple pressure challenges, and most economic indicators are under pressure to rebound. At the same time, we should also see that the pressure of produc—tion and operation of printing and dyeing enterprises is still outstanding, and the printing and dyeing industry is still facing a big test to achieve stable operation throughout the year.

Decline in output expanded

According to the data of the National Bureau of Statistics, from Janu—ary to June, 2022, the output of printed and dyed fabrics of enterprises above designated size in the printing and dyeing industry was 26.906 billion meters, down 5.52% year—on—year, and the decline showed an ex—panding trend for three consecutive months. From the per—spective of monthly output, in the f irst half of the year, the production of China's printing and dyeing industry f luctuat—ed to some extent. From January to February, the output of printed and dyed fabrics kept a steady growth. Since March,due to the impact of international environmental changes and domestic pandemic situation, the cumulative year—on—year growth rate of printed and dyed fabrics has gradually declined, especially in April, when the output of printed and dyed fabrics reached a stage low. Since May, the pandemic situation in China has generally improved. With the support of the national package of policies and measures to help enterprises bail out, the production capacity of printing and dyeing enterprises has been gradually released. In May and June, the output of printed and dyed fabrics has been ris—ing for two consecutive months, with the chain—on—chain growth of 6.29% and 0.30% respectively.

The export situation remained good

According to the statistics of China Customs, from January to June 2022, the export volume of eight cat—egories of printing and dyeing products was 14.976 bil—lion meters, an increase of 9.81% over the same period of last year; The export value was USD 15.918 billion, up by 18.64% year on year; The average export unit price is USD 1.06/m, up 8.04% year—on—year. Among the export markets, Southeast Asia is the main direct export area of China's printing and dyeing products. This year, its textile supply chain has basically returned to normal operation,and China's export scale of its yarn, fabric and other indus—trial chain supporting products has achieved rapid growth.In the first half of the year, China's export growth rate of yarn and fabric to ASEAN reached 29.9% and 24.6%respectively. Among the main export products, synthetic filament fabrics accounted for more than 70% of the total exports of eight categories of printing and dyeing products.In the first half of this year, the export of synthetic filament fabrics increased by 19.79% year—on—year, which drove the export of printing and dyeing industry to achieve steady growth. The export of cotton—containing products such as pure cotton dyed cloth, pure cotton printed cloth and cotton blended printed cloth dropped sharply due to the imple—mentation of the comprehensive ban on Xinjiang—related products by the United States, with the drops reaching 20.76%, 24.04% and 14.69% respectively.

The operation quality continues to improve

According to the data of the National Bureau of Statistics, from January to June, 2022, the proportion of three expenses for printing and dyeing enterprises above designated size was 6.42%, down 0.57 percentage points year—on—year. Among them, cotton printing and dyeing en—terprises accounted for 6.23% and chemical fiber printing and dyeing enterprises for 7.77%; The turnover rate of fin—ished products is 17.18 times/year, slowing down by 5.30%year—on—year; Accounts receivable turnover rate was 8.80 times/year, up by 1.86% year—on—year; The total asset turnover rate was 1.03 times/year, up 2.62% year—on—year. In the first half of the year, with the sharp rise in raw material prices, printing and dyeing enterprises paid more attention to fine management, the proportion of three expenses decreased compared with the same period of last year, and the capital turnover efficiency also increased slightly. However, the turnover rate of finished products has been negative since March, which indicates that the problem of poor connection between production and sales of enterprises still exists.

The differentiation between profit and loss has intensified

According to the data of the National Bureau of Sta—tistics, from January to June 2022, the operating income of printing and dyeing enterprises above designated size was 150.066 billion yuan, an increase of 11.10% over the same period of last year; Realized a total profit of 5.718 billion yuan, a year—on—year increase of 13.79%; The cost profit rate was 4.04%, up 0.10 percentage points year—on—year; The sales profit rate was 3.81%, up 0.09 percentage points year—on—year; Export delivery value was 19.846 billion yuan, up 8.69% year—on—year. The number of loss—making households in 687 printing and dyeing enterprises above designated size is 593, with a loss of 35.15%, an increase of 5.60 percentage points over the same period of last year; The total loss of the enterprise was 1.764 billion yuan, a year—on—year increase of 50.78%. In the first half of the year, the overall development benefit of the printing and dyeing industry performed well in the textile industry chain. The operating income and total profit of printing and dyeing enterprises above designated size achieved double—digit growth, which was 5.4 and 30.8 percentage points higher than that of the whole textile industry respectively.At the same time, it should also be noted that the profit and loss differentiation of enterprises within the industry has further intensified, and the total loss of loss—making enterprises has increased substantially compared with the same period of last year, reflecting that some enterprises have encountered great difficulties in the operation process at present.

In the first half of the year, under the impact of inter—national turbulence and domestic pandemic, high cost and weak domestic demand are the biggest problems faced by the printing and dyeing industry. Faced with many difficul—ties, the printing and dyeing industry showed its develop—ment resilience, and made efforts to overcome various unfavorable factors. Most economic indicators kept grow—ing. Looking forward to the whole year, there are still many unstable and uncertain factors in the external develop—ment environment of the printing and dyeing industry. The Russia—Ukraine conflict has not shown any signs of ending in a short time. Inflation and currency liquidity contraction in developed countries and regions such as the United States and Europe have increased the downward pressure on the global economy, which will inhibit the consumption of textiles and clothing in the international market. At the same time, the expansion of printing and dyeing capacity in Southeast Asia will also make the international competi—tion faced by China's printing and dyeing industry more intense. All these factors will increase the pressure on the industry's economic operation. On the whole, however,China's printing and dyeing industry still has a good foun—dation for recovery. China's super—large—scale market ad—vantage and huge domestic demand consumption poten—tial are still important supports for the steady development of the industry. The advantages of the industry chain with complete supporting facilities and efficient operation are still outstanding, which still plays an important and positive role in promoting the sustained and good development of the industry. At present, the situation of pandemic preven—tion and control in China is generally controllable. With the sustained effect of the national policy of steady growth and consumption promotion, the domestic demand con—sumption market is expected to continue to improve, and the circulation of production and demand will be smoother,which will provide a solid foundation for further improving the quality and efficiency of industry development.