At the beginning of 2020, the sudden COVID-19 epidemic caused a major impact on the production and operation activities of textile machinery companies. In the first quarter, the main economic indicators of the textile machinery industry dropped significantly. Since the second quarter, with the country’s overall deployment of epidemic prevention and control and economic and social development, my country’s economic development has gradually recovered, and the production and operation order of the textile machinery industry has gradually returned to normal. The decline in industry economic operation indicators has narrowed significantly compared with the first quarter, and exports have declined year-on-year. Slight decrease. However, the impact of the epidemic still exists, and industry production and operations are still facing greater pressure.
The decline in operational indicators in the second quarter narrowed, and textile machinery exports fell slightly year-on-year
According to statistics from the National Bureau of Statistics, from January to June, 636 textile machinery enterprises above designated size achieved operating income of 32.137 billion yuan, a decrease of 17.02% compared with the same period last year. The growth rate dropped by 16.23 percentage points compared with the same period last year. The decline in operating income in the second quarter narrowed by 19.88 percentage points compared with the first quarter. Total assets were 102.256 billion yuan, an increase of 12.82% compared with the same period last year. The total profit realized was 2.119 billion yuan, a decrease of 24.86% compared with the same period last year, and the decline narrowed by 42.48 percentage points compared with the first quarter of this year. The operating income profit margin was 6.59%, 0.38 percentage points lower than the same period last year. Industry profitability is still under great pressure. The loss of loss-making enterprises was 434 million yuan, an increase of 112.16% compared with the same period last year; the loss area was 33.19%, an increase of 14.21 percentage points compared with the same period last year. From January to June, the total cost of textile machinery enterprises above designated size was 29.404 billion yuan, a decrease of 30.53% compared with the same period last year.
The China Textile Machinery Association conducted a survey on the operating conditions of 108 key textile machinery companies in the first half of 2020. Judging from the summary results, 67% of the companies’ operating income declined to varying degrees in the first half of the year, the prices of textile machinery products were generally stable with some decline, and corporate inventories increased. 50% of companies believe that the main problems they face are insufficient domestic and foreign markets, blocked sales channels, and cancellation of original orders. Regarding the situation of the textile machinery industry in the third quarter of 2020, 49.53% of the surveyed companies believe that it is not optimistic.
According to customs statistics, from January to June, the cumulative import and export volume of my country’s textile machinery was 3.282 billion U.S. dollars, compared with the same period last year compared to a decrease of 8.76%. Among them: textile machinery imports were US$1.393 billion, a decrease of 18.43% compared with the same period last year; exports were US$1.889 billion, a decrease of 0.03% compared with the same period last year, which was basically the same.
From January to June, my country imported textile machinery from 53 countries and regions, with a total import volume of US$1.393 billion, year-on-year. down 18.43%. In terms of imported product categories, chemical fiber machinery imports ranked first, with a total import volume of US$543 million, an increase of 18.51% compared with the same period last year, accounting for 38.99% of the total import volume; except for chemical fiber machinery, all seven major categories of products have differences A significant decrease in the degree.
From January to June, my country exported a total of US$1.889 billion in textile machinery to 169 countries and regions, which was the same as the same period last year. A decrease of 0.03% compared to the previous year. Driven by the export of anti-epidemic textile production equipment, the total export volume of textile machinery has basically returned to the level of the same period last year.
In terms of export categories, the export volume of nonwoven machinery (including epidemic prevention textile production equipment) was US$547 million, which was the same as Compared with last year, it increased by 604.92%, accounting for 28.95%, ranking first, followed by printing, dyeing and finishing machinery, knitting machinery, auxiliary devices and spare parts, weaving machinery, spinning machinery, and chemical fiber machinery.
Performances vary by industry, and competition will become more intense in the future
Affected by the COVID-19 epidemic, all sub-industries have been affected to varying degrees. However, after the outbreak, various sub-industries of textile machinery took active actions and moved forward under pressure.
Since the beginning of this year, affected by the epidemic at home and abroad, market demand has been sluggish, and there have been fewer new and technological transformation projects, which has affected The demand for equipment and equipment has dropped significantly. The production and sales of many equipment companies in the first quarter mainly continued last year’s orders, and the workload in the second quarter was obviously insufficient. The sales of cotton spinning machines decreased by 61.7% year-on-year, of which the sales of long cars (equipped with collective doffing devices) accounted for 77.8% of the total spinning machines; the sales of rotor spinning machines decreased by 31.6% year-on-year. Coupled with the spread of foreign epidemics, import and export logistics Due to the difficulties in personnel mobility, the sales of spinning machinery, including import and export, have experienced a significant decline. Among imported equipment, only air-jet vortex spinning equipment is still growing, indicating that domestic investment enthusiasm for air-jet vortex spinning continues. It is expected that the market demand for spinning equipment will not show obvious signs of improvement in the third quarter, and the shortage of orders will continue.
In the first half of 2020, as the domestic COVID-19 epidemic was effectively controlled, the domestic market showed a gradual recovery trend, and weaving machinery Enterprise capacity utilization has gradually recovered, and supply capacity and industrial chains have continued to improve. In the first quarter, the sales orders of weaving machinery companies were in the order recovery stage after the domestic epidemic. However, since April, with the outbreak of foreign epidemics and the impact of factors such as the Sino-US trade war and the escalation of friction between China and India, corporate production has slowed down significantly, but production and sales have slowed down significantly. Sales volume gradually concentrated on leading enterprises, and the sales volume of weaving machinery showed a downward trend in the first half of the year. According to statistics from the China Textile Machinery Association, in the first half of 2020, sales of high-speed rapier looms decreased by 6.9% year-on-year, sales of water-jet looms decreased by 26.3% year-on-year, and sales of air-jet looms decreased by 2.7% year-on-year. It is expected that in the third quarter of 2020, as the epidemic gradually eases, the end consumer market’s purchase demand for clothing and industrial textiles will gradually rebound, and rapier fabrics will gradually recover.The global economy has suffered from both supply and demand shocks, and has slipped into recession in the short term. Countries have uneven responses to the epidemic, and the global economy faces great uncertainty. According to the latest forecasts from the IMF and the World Bank, global GDP growth will drop to -5% in 2020. my country’s economy is gradually recovering, but major indicators such as GDP, consumption, investment, and exports are still in the decline zone in the first half of the year, and the losses caused by the epidemic still need to be made up.
The economic operation of my country’s textile industry has gradually recovered under pressure, and the production order has gradually improved, but corporate investment and development confidence are still insufficient. , market demand has not yet fully recovered. In addition, according to a survey report released by the International Textile Federation (ITMF) in June this year, due to the impact of the epidemic, the turnover of major global textile companies is expected to drop by an average of 32% in 2020, and most textile companies expect that it will not be possible until the first and second quarters of 2021. Returning to pre-crisis levels, the epidemic has also prompted companies to pay more attention to the importance of local/regional supply chains, which may change the current pattern of global textile supply chains. The adjustment of the domestic and foreign markets of textile machinery is still accelerating. The market adjustment has brought continuous impact to the operations of textile machinery enterprises, and a new round of industry reshuffle is inevitable. Affected by the epidemic, although the overall market size is shrinking and competition has become more intense, the competitive advantages of leading companies in subdivided industries have become more prominent. </p
