Textile industry to pick up speed

Textile industry to pick up speed

After the golden period of development from 2001 to 2008, the textile industry, which has been in a state of slow recovery after the financial crisis, has started to accelerate its recovery. At the same time, however, the polarization of the industry is further aggravated.

ROE promotes refraction industry to pick up According to statistics from Shanghai Securities News, the total ROE (net asset yield) of A-share textile and apparel industry in 2013 was 7.9%, which was a 4.3% increase from 3.6% in the same period of last year, compared with the textile industry ROE in the third quarter of last year. Only 1.32% increase year-on-year.

As an important financial indicator for judging the profitability of listed companies, the dramatic increase in ROE may reflect the signs of accelerated recovery in the textile industry.

From the perspective of specific companies, the 2013 annual report of the world's largest yarn-dyed fabric production base and color textile cloth industry leader Luthai A shows that last year it achieved operating income of 6.478 billion yuan, an increase of 9.78% year-on-year; net profit of 9.99 billion yuan, an increase of 41.17% year-on-year .

Lu Tai A said in the annual report that the increase in profitability was mainly due to the increase in the price of long-staple cotton and the increase in the price of export orders. As a result, the company’s gross profit margin increased by nearly 4 percentage points, with the gross profit rate increased by 7.49 percentage points in the fourth quarter. .

Coincidentally. The spun yarn company leader Huafu Color Spinning (002042, stocks bar) was also very brilliant last year, achieving operating income and net profit of 6.24 billion, 200 million, respectively, an increase of 8.86%, 120.72%. The company said that it mainly benefited from seizing market opportunities while introducing new products that meet market demand.

“Since the second half of last year, the entire textile industry has indeed picked up, which is mainly reflected in home textiles, clothing, and fabrics enterprises.” Liu Shijie, president of the Shenzhen Textile Industry Association, told reporters that the industry’s rebound is mainly due to the obvious economic recovery in developed countries and to textiles. The increase in apparel demand, coupled with companies to increase domestic sales efforts, product development progress, vigorously develop e-commerce, expand sales channels, and internal cost control.

The reporter combed and found out that in addition to the above-mentioned companies, companies such as Blum East, Jialin Jie (002486, shares), and Jinlong (000712, stocks) have achieved double net profit last year. 600400, stocks), Mengjie Home Textiles (002397, stocks), Haishu Home (600398, stocks), Pathfinder (300005, stocks) were up 73.78%, 70.91%, 35.58%, 31.53% respectively.

At the recent meeting of the China Textile Industry Federation's spring survey, the cotton research group pointed out that through the investigation of Shandong, Henan, Hebei, Hubei, Chongqing and other places since February, the China Federation of Joint Appraisals found that the overall operation of textile enterprises is stable. Most of the enterprises had normal operating rates after the holiday and the orders were relatively abundant and grew steadily.

The polarization is further intensified. However, behind the overall prosperity, it is difficult to conceal the bitterness of some companies' operating difficulties.

A listed company executive told reporters that from the perspective of the industry chain, the production capacity in the upper-middle-stream market is relatively surplus, mainly due to the rapid expansion of production capacity in previous years. From the overall perspective of the industry, despite the steady growth of the industry as a whole and the performance of leading listed companies, the majority of SMEs are still struggling.

The spring survey report from the Chinese cotton textile industry also shows that due to the current cotton policy and the huge inventory needs of the State Reserve, which are being digested year by year, as well as rising costs, tax burdens, and financial pressures, some companies are more difficult to develop, especially Some small and medium enterprises have further signs of deterioration in their living environment. At the same time, most of the big and powerful companies are going out or planning to go out and invest in factories in Southeast Asia, Africa, Australia, and the United States.

“The “going out” of China’s cotton textile industry is “forced” by the policy,” said Gao Yong, vice chairman of the China Cotton Textile Industry Association.

“The industry has been in a weak recovery since 2008 and is still in an adjustment period. With the continuation of the adjustment, the polarization of the industry will continue to increase.” Wang Textile, editor-in-chief of First Textile Network, told reporters that the entire textile industry before 2008 Basically in a state of full profit, and after this, industry differentiation began to appear.

Wang Qian pointed out that the current situation in the textile industry is that, on the one hand, backbone enterprises with unique competitive advantages in a certain field or area have sustained high growth; on the other hand, those “popularized” textile enterprises, especially small and medium-sized enterprises, are Lack of competitiveness, lack of market pricing power, and deteriorating business conditions.

The "2014 Textile Situation Analysis" report pointed out that 2014 is a year in which the textile industry is worth looking forward to. Judging from the macroeconomic situation, the macroeconomic environment in China is likely to become better in 2014. The textile industry will probably surpass the bottom and enter the growth stage. In the case that the overall international economic environment is not very good, as long as there is no environmental degradation The phenomenon, or be a good news. Therefore, strengthening the adjustment of industrial structure, promoting industry transformation and upgrading, and enhancing industry self-innovation capability and sustainable development are still the theme of the textile industry in 2014.

“The adjustment period of the textile industry will continue until 2015, after which the industry will enter the upgrade period.” Wang Qianjin said.

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