Economic Operation Of Printing And Dyeing Industry In The Past 11 Months

In November 2022, the international environment will remain complex and severe, geopolitical conflicts will continue to deepen, monetary policies of developed economies will continue to tighten, downside risks of the global economy will increase, and contraction of external demand will further emerge. The frequent and widespread outbreaks of domestic epidemics have had a great impact on the normal production and operation of printing and dyeing enterprises, and have also significantly restricted domestic consumption. Under the influence of multiple unexpected factors, from January to November, the output of printing and dyeing enterprises above designated size decreased further, the operating efficiency of the industry declined, the export growth of major printing and dyeing products continued to slow down, and the operation of the printing and dyeing industry still faced greater pressure.

The decline in output continued to expand

Continuous pressure on industry production

According to the data of the National Bureau of Statistics, from January to November 2022, the output of printing and dyeing fabrics of enterprises above designated size in the printing and dyeing industry will reach 50.435 billion meters, a year-on-year decrease of 7.05%, 0.25 percentage points more than that from January to October. On a month on month basis, the printing and dyeing output of printing and dyeing enterprises above designated size in November was 4.978 billion meters, 3.99% higher than that in October. In November, the domestic epidemic rebounded in a large area, which greatly restricted the consumption of textiles and clothing. According to the data of the National Bureau of Statistics, in November, the retail sales of clothing, shoes and hats, knitwear and textiles above the designated size decreased by 15.6% year on year, 8.1 percentage points more than the previous month. The terminal demand was insufficient, and the production of the printing and dyeing industry continued to be under pressure. The cumulative output decline showed an expanding trend for two consecutive months.

Figure 1 Production and growth of printing and dyeing fabrics of printing and dyeing enterprises above designated size since 2022

Growth of some indicators slowed down

Operation efficiency needs to be improved

According to the data of the National Bureau of Statistics, from January to November 2022, the proportion of three fees for printing and dyeing enterprises above designated size was 6.32%, a year-on-year decrease of 0.39 percentage points, of which 6.18% was for cotton printing and dyeing enterprises and 7.21% for chemical fiber printing and dyeing enterprises; The turnover rate of finished products is 16.81 times/year, with a year-on-year slowdown of 0.51%; The turnover rate of accounts receivable is 8.43 times/year, up 0.04% year on year; The turnover rate of total assets was 1.02 times/year, up 0.60% year on year. Compared with January October, from January to November, the decline in the turnover rate of finished products in the printing and dyeing industry narrowed by 1.46 percentage points, but still showed a negative growth trend, and the growth rate of the turnover rate of accounts receivable fell by 0.91 percentage points, indicating that under the influence of multiple factors, the current operating efficiency of the printing and dyeing industry is still low.

Table 1 Main operation quality indicators of printing and dyeing enterprises above designated size from January to November 2022

Further decline in industry profits

Operation efficiency needs to be improved

According to the data of the National Bureau of Statistics, from January to November 2022, the operating revenue of printing and dyeing enterprises above designated size will be 282.540 billion yuan, up 5.97% year on year, 1.41 percentage points lower than that from January to October 2022; The total profit was 11.298 billion yuan, a year-on-year decrease of 9.66%, 5.30 percentage points higher than that from January to October; Cost profit rate was 4.27%, down 0.76 percentage points year on year; The sales profit margin was 4.00%, a year-on-year decrease of 0.69 percentage points, 0.21 percentage points higher than that from January to October; The export delivery value was 35.963 billion yuan, up 1.67% year on year. 1715 printing and dyeing enterprises above designated size had 554 loss making households, with a loss of 32.30%; The total loss of loss making enterprises was 3.11 billion yuan, up 77.39% year on year.

From January to November, the industry's operating income kept growing, but the growth rate showed a trend of "high in the front and low in the back". The overall growth rate of total profit showed a downward trend. The growth rate of total profit from January to November was 5.30 percentage points higher than that from January to October, and the total loss of loss making enterprises increased significantly, reflecting that under the influence of multiple adverse factors, the operating pressure of printing and dyeing enterprises increased significantly, and the operating efficiency of the industry needs to be improved.

Figure 2 Change of main economic indicators of printing and dyeing enterprises above designated size since 2022

Foreign trade exports keep growing

But the growth rate gradually fell back

According to the statistics of China Customs, from January to November 2022, the export volume of eight categories of printing and dyeing products was 27.337 billion meters, up 7.83% year on year, 0.84 percentage points lower than that from January to October; The export value was 28.932 billion US dollars, up 13.09% year on year, 2.46 percentage points lower than that from January to October; The average export unit price was 1.06 US dollars/meter, up 4.88% year on year. In 2022, the export growth rate of China's eight major categories of printing and dyeing products showed a fluctuating downward trend after reaching its peak in the first quarter, mainly due to the downward impact of the world economy, the growth of residents' income slowed down, consumers' real purchasing power weakened, and the shrinking trend of international market demand gradually emerged.

Figure 3 Export of China's eight categories of printing and dyeing products since 2022

On the whole, the macro development environment faced by the industry in November was still severe, and the phased difficulties encountered by enterprises in production and operation were still outstanding, and the stable operation of the industry needed continuous efforts. Looking forward to the next step, on the one hand, with the timely adjustment and optimization of epidemic prevention and control policies at the national level in December and the continued efforts of a package of policies and measures to promote stable consumption growth, consumer market confidence is expected to accelerate recovery, and the efficiency of production and demand cycle will be further improved. At the same time, traditional festivals such as New Year's Day, Spring Festival, and Lantern Festival will promote the release of textile and clothing consumption demand, The domestic market of the industry is expected to maintain a stable recovery trend; On the other hand, risk factors such as the bleak global economic outlook, the complex evolution of the geographical situation, and the high inflation in major economies will exacerbate the risk of global economic recession. International demand is likely to further shrink, and industry exports will continue to be under pressure.

(Source: China Printing and Dyeing Industry Association)