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                Operation analysis of home textile industry in the first quarter of 2020

                Editor:桐鄉→莎克絲家紡有限公司 │ Release Time:2020-05-08 

                In the first quarter of this year, the epidemic of New Coronary Pneumonia has spread at home and abroad. The production and operation of home textile companies have encountered unprecedented difficulties. The domestic and foreign market orders of the company have been significantly reduced, which seriously affects the operation and benefits of the industry. Since the end of February, with the gradual and effective control of the domestic epidemic situation, the resumption of production of domestic textile enterprises has been gradually and orderly promoted, but because the spread of overseas epidemic conditions continues, export-oriented home textile enterprises are facing a more severe test. Statistics show that the main operating indicators of the home textile industry all showed negative growth in the first quarter, putting pressure on the operation of enterprises.

                Production scale down

                Affected by the epidemic situation, the home textile industry's suspension time has been extended after the Spring Festival. After the gradual resumption of production and resumption of production, many enterprises are facing the shortage of orders, and the production growth rate has dropped significantly. According to data from the National Bureau of Statistics, in the first quarter of this year, 1,760 home textile enterprises above designated size achieved main business revenue of 33.2 billion yuan, a year-on-year decrease of 24.77%; the decrease was 4.95 percentage points narrower than the previous two months. The 223 key enterprises and 15 industrial clusters tracked by the association also showed negative growth. The main business income in the first quarter fell by 19.20% and 14.18% year-on-year respectively.

                Declining domestic and external market demand

                (1) After the epidemic of foreign exports has accelerated, many countries have entered a state of emergency, businesses have shut down, customs have been closed, export orders for home textile companies have been postponed and cancelled in large numbers, rejections of discarded goods have occurred frequently, and industry export pressures have increased sharply. According to my country's customs data, my country's exports of home textile products in the first quarter of this year were 7.969 billion US dollars, down 11.07% year-on-year. From the perspective of export products, the export of towels, bedding and blankets has been more seriously affected, with a decline of more than 20%. From the perspective of the export market, the export volume of several of the world's major export markets has been greatly affected. Especially in the US market, the value of exports to the US in the first quarter of this year was US$1.868 billion, a significant decrease of 19.70% year-on-year. No order is the most important problem faced by export-oriented enterprises. Therefore, export-oriented enterprises urgently need social attention and corresponding assistance from the government, and provide targeted subsidy policies to help enterprises overcome difficulties.

                Industry operation quality and efficiency decline

                In the case of insufficient demand and a sharp decline in production and sales, the operating quality and efficiency of home textile companies have dropped significantly, but there is a gradual improvement trend. According to data from the National Bureau of Statistics, the loss of 1,760 home textile enterprises above designated size in the first quarter of this year was 36.14%, an increase of 22.29 percentage points from the same period of the previous year, but slightly narrower than the previous two months. The total asset turnover rate was 0.92, a decrease of 0.39 points from the same period last year, of which the inventory turnover rate was 1.46, a decrease of 0.63 points from the same period last year. The inventory turnover rate was 1.23, down 0.50 points from the same period last year. The total profit achieved was 1.107 billion yuan, a year-on-year decrease of 20.95%, but the decline was narrower than the previous two months. The cost-profit margin was 3.49%, an increase of 0.83 percentage points from the previous two months, and remained basically the same as the previous year. In the normalized epidemic prevention and control, my country's domestic production and living order gradually recovered, and the macroeconomic operation was gradually on track.