In the first half of 2022, the printing and dyeing industry will face a more complex and severe development environment. The conflict between Russia and Ukraine continues to trigger a sharp rise in the prices of oil, natural gas and other energy sources, putting printing and dyeing companies under greater pressure on the cost side. The frequent occurrence of domestic epidemics has adversely affected the normal production and operation of the industry. It also restricts residents’ consumer confidence, and consumption has a negative impact on the industry. The driving role of economic growth has weakened. Affected by multiple factors, the economic operation of the printing and dyeing industry was under pressure in the first half of the year. As the rebound of the epidemic has been effectively controlled and the national level and local governments have introduced a package of policies and measures to stabilize growth, maintain employment, and promote consumption, the industry has overcome multiple pressures and challenges, and most economic performance indicators have recovered under pressure. At the same time, it should also be noted that the pressure on production and operation of printing and dyeing enterprises is still relatively prominent, and the printing and dyeing industry still faces greater challenges in achieving stable operation throughout the year.
The year-on-year decline in output expanded, and the month-on-month outlook continued to improve.
According to data from the National Bureau of Statistics, from January to June 2022, the output of printed and dyed fabrics by enterprises above designated size in the printing and dyeing industry was 26.906 billion meters, a year-on-year decrease of 5.52%, and the decline has been expanding for three consecutive months. From the perspective of monthly output, in the first half of the year, my country’s printing and dyeing industry experienced certain fluctuations in production. From January to February, the output of printed and dyed cloths maintained steady growth. Since March, affected by changes in the international environment and the impact of the domestic epidemic, the cumulative year-on-year growth rate of printed and dyed cloth output Gradually, the output of printed and dyed fabrics hit a phased low in April. After entering May, the domestic epidemic situation is generally improving. With the support of the country’s package of corporate relief policies and measures, the production capacity of printing and dyeing enterprises has gradually been released. The output of printing and dyeing fabrics has rebounded for two consecutive months in May and June, with month-on-month growth of 6.29% and 6.29%, respectively. 0.30%.
Figure 1 Output of printed and dyed fabrics by enterprises above designated size in the first half of 2022
Source: National Bureau of Statistics
The export situation remains good, and the export volume and price of major products have increased.
According to China Customs statistics, from January to June 2022, the export quantity of eight major categories of printing and dyeing products was 14.976 billion meters, a year-on-year increase of 9.81%; the export value was US$15.918 billion, a year-on-year increase of 18.64%; the average export unit price was US$1.06/meter, a year-on-year increase of 8.04 %. In the export market, Southeast Asia is the main direct export region for my country’s printing and dyeing products. Its textile supply chain has basically returned to normal operation this year. my country’s export scale of its yarn, fabric and other industrial chain supporting products has achieved rapid growth. In the first half of the year, my country’s exports to ASEAN The growth rates of yarn and fabric exports reached 29.9% and 24.6% respectively. Among the main export products, synthetic filament fabrics accounted for more than 70% of the total export volume of the eight major categories of printing and dyeing products. In the first half of the year, the export of synthetic filament fabrics increased by 19.79% year-on-year, driving the exports of the printing and dyeing industry to achieve steady growth. Pure cotton dyed fabrics, pure The export of cotton-containing products such as cotton printed fabrics and cotton blended printed fabrics has declined sharply due to the U.S.’s implementation of a comprehensive ban on Xinjiang-related products, with declines reaching 20.76%, 24.04%, and 14.69% respectively.
Figure 2 my country’s exports of eight major categories of printing and dyeing products in the first half of 2022
Source: China Customs
Operation quality continues to improve, but the connection between production and sales is still not smooth
According to data from 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%, a year-on-year decrease of 0.57 percentage points, of which 6.23% was for cotton printing and dyeing enterprises and 7.77% for chemical fiber printing and dyeing enterprises; the turnover rate of finished products was 17.18 times/year, a year-on-year slowdown of 5.30%; the accounts receivable turnover rate was 8.80 times/year, a year-on-year increase of 1.86%; the total asset turnover rate was 1.03 times/year, a year-on-year increase of 2.62%. In the first half of the year, with the sharp rise in raw material prices, printing and dyeing companies paid more attention to refined management. The ratio of three fees has decreased compared with the same period last year, and the capital turnover efficiency has also improved slightly. However, the turnover rate of finished products has shown a negative growth trend since March. It shows that the current problem of poor connection between production and sales of enterprises still exists.
Table 1 Main operational quality indicators of printing and dyeing enterprises above designated size from January to June 2022
Source: National Bureau of Statistics
Development benefits remain good, and corporate profit and loss differentiation intensifies
According to data from the National Bureau of Statistics, from January to June 2022, the operating income of printing and dyeing enterprises above designated size was 150.066 billion yuan, a year-on-year increase of 11.10%; the total profit was 5.718 billion yuan, a year-on-year increase of 13.79%; the cost and expense profit margin was 4.04%, a year-on-year increase of 0.10 percentage points; sales profit margin was 3.81%, a year-on-year increase of 0.09 percentage points; the export delivery value was 19.846 billion yuan, a year-on-year increase of 8.69%. The number of loss-making enterprises among the 1,687 printing and dyeing enterprises above designated size was 593, with a loss rate of 35.15%, a year-on-year increase of 5.60 percentage points; the total loss of loss-making enterprises was 1.764 billion yuan, a year-on-year increase of 50.78%.
In the first half of the year, the overall development efficiency of the printing and dyeing industry performed better in the textile industry chain. The operating income and total profits of printing and dyeing enterprises above designated size both achieved double-digit growth, which was 5.4 and 30.8 percentage points higher than that of the entire 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 deepened.The situation has intensified, and the total losses of loss-making enterprises have increased significantly compared with the same period last year, reflecting that some enterprises are currently encountering greater difficulties in their operations.
Figure 3 Year-on-year growth rate of main economic benefit indicators of the printing and dyeing industry in the first half of 2022
Source: National Bureau of Statistics
Looking back on the first half of the year, under the impact of international turmoil and the domestic epidemic, high costs and weak domestic demand are the biggest problems facing the printing and dyeing industry. Faced with many difficulties, the printing and dyeing industry has demonstrated its resilience and strived to overcome various adverse factors, with most economic indicators maintaining growth. Looking forward to the whole year, there are still many unstable and uncertain factors in the external development environment of the printing and dyeing industry. The conflict between Russia and Ukraine has no signs of ending in the short term. Inflation and shrinking currency liquidity in developed countries and regions such as the United States and Europe have led to increased 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 production capacity in Southeast Asia will also intensify the international competition faced by my country’s printing and dyeing industry. The above factors will increase the pressure on the economic operation of the industry. But overall, my country’s printing and dyeing industry still has the foundation for recovery. my country’s ultra-large-scale market advantages and huge domestic consumption potential are still important supports for the steady development of the industry. The advantages of the industry’s complete supporting facilities and efficient operation of the industrial chain are still outstanding, which is important for It still plays an important and positive role in promoting the sustained and positive development of the industry. The current domestic epidemic prevention and control situation is generally controllable. As the national policy of stabilizing growth and promoting consumption continues to show results, the domestic consumer market is expected to continue to improve, and the production and demand cycle will become smoother, which will provide a solid foundation for further improving the quality and efficiency of industry development.