Dyeing and printing industry production continues to improve in the first half of 2021
Aug 24, 2021 ｜ by Zhao Xinhua
In the first half of 2021, China’s dyeing and printing industry production continues to improve, enterprise benefit gradually improved, exports maintain rapid growth, the overall economic situation is stable. Meanwhile, the pandemic in the world is not even close to being over. The rise in international commodity prices has affected the production and operation of the industry, and the stable recovery of the industry still faces tests in many aspects.
Production continues to improve, and growth momentum continues to strengthen
Since 2021, the capacity utilization of China’s dyeing and printing industry has been kept at a high level, and the output has been significantly increased compared with that in the pre-pandemic period. According to the data of National Bureau of Statistics, in the first half of 2021, the output of dyeing and printing enterprises above designated size was 28.743 billion meters, up 25.93 percent year-on-year and 20.41 percent compared with the same period in 2019. The rapid recovery of production in the industry is due to the fact that the domestic pandemic prevention and control situation is basically stable, which provides a strong guarantee for enterprises to carry out various production and operation activities in an orderly manner; on the other hand, it benefits from domestic and international market demand and the consumption-stimulating effect. In the first half of this year, the national sales of clothing, footwear, and knitting textiles above designated size rose 33.7 percent year-on-year, and the cumulative export value of clothing increased by 40.3 percent year-on-year. The smooth circulation of domestic and foreign consumer markets has become an important support for the stable recovery of the industry. The output of dyeing and printing enterprises above designated size in the first half of 2019-2021 is shown in Figure 1.
The quality and efficiency of development continued to be improved, and the foundation for recovery still needs to be consolidated
According to the data of National Bureau of Statistics, in the first half of this year, the proportion of three expenses of dyeing and printing enterprises above designated size was 7.03 percent, 0.39 percentage points lower than that of last year, among which, cotton dyeing and printing enterprises were 6.75 percent, chemical fiber dyeing and printing enterprises were 9.00 percent; the finished product turnover was 9.32 times per year, 21.45 percent higher than that of last year; accounts receivable turnover was 4.30 times per year, 18.13 percent higher than last year; total asset turnover was 0.50 times per year, 18.30 percent higher than the same period last year, reflecting that the current industry production and sales link is more smooth, and the operation quality has been continuously improved. Since the beginning of this year, as the production and operation of enterprises gradually normalize, the main operational quality indicators of the industry have achieved significant recovery growth on the basis of the low base of the same period last year, but there is still a significant gap between some indicators and those in the pre-pandemic period. Compared with the same period in 2019, in the first half of 2021, the proportion of three expenses of dyeing and printing enterprises above designated size increased by 0.26 percentage points, the finished product turnover and total asset turnover decreased by 11.64 percent and 9.35 percent, respectively, and the accounts receivable turnover increased by 6.18 percent. The foundation of stable improvement of industry operation quality still needs to be further consolidated.
According to the data of the National Bureau of Statistics, in the first half of the year, the national 1,550 dyeing and printing enterprises above designated size realized the business revenue of 135.120 billion yuan, up 27.02 percent year-on-year; the total profit reached 5.213 billion yuan, up 53.76 percent year-on-year; ratio of profits to cost and expense was 4.09 percent, 0.75 percentage points higher than last year; sales margin was 3.86 percent, 0.67 percentage points higher than the same period last year; the number of loss-making enterprises was 458, and the percentage of loss-making enterprises was 29.55 percent, which narrowed by 12.91 percentage points year-on-year; the total loss of loss-making enterprises was 1.125 billion yuan, down 38.68 percent year-on-year; the export delivery value reached 18.203 billion yuan, up 19.10 percent year-on-year, reflecting the enterprise profitability to accelerate recovery, and operating efficiency continues to improve. Compared with the same period in 2019, in the first half of 2021, the operating income of dyeing and printing enterprises above designated size decreased by 0.73 percent, the total profit decreased by 12.50 percent, ratio of profits to cost and expense decreased by 0.55 percentage points, sales margin decreased by 0.52 percentage points, the percentage of loss-making enterprises expanded by 5.93 percentage points, the total loss increased by 8.95 percent, export delivery value decreased by 9.17 percent.
Overall, driven by the gradual recovery of domestic and foreign markets, the economic benefits of the industry have continued to recover. The operating income of dyeing and printing enterprises above designated size in the first half of the year has been basically the same as that in the pre-pandemic period. However, due to a significant rise in raw materials, labor costs, and shipping costs since the beginning of this year, business operating costs have increased, and profit margins have been squeezed. The gap between total industry profits and sales margin and that of the same period in 2019 is still obvious, and the industry still faces many challenges in achieving a full recovery.
Export continued to grow and foreign trade maintained a good situation
Since this year, the state has issued a series of policies to stabilize foreign trade, and introduced effective measures to support enterprises in expanding markets and increasing orders. The export of the dyeing and printing industry maintained rapid growth, the export volume is also to achieve growth compared with the pre-pandemic period. In particular, the average export unit price of eight major categories of dyeing and printing products has achieved growth for the first time since the outbreak. According to China Customs HS 8-digit statistics, in the first half of 2021, the export volume of eight major categories of dyeing and printing products was 13.637 billion meters, up 40.66 percent year-on-year; the export value was USD 13.417 billion, up 41.33 percent year-on-year; the average unit price of exports was USD 0.98/m, up 0.47 percent year-on-year. Compared with the same period in 2019, the export volume and export value increased by 4.87 percent and 0.47 percent respectively, while the average unit price of exports decreased by 4.19 percent, reflecting the fierce competition in the export market of the industry.
Overall, the economic operation of the dyeing and printing industry continued to recover steadily in the first half of the year, laying a solid foundation for the stable operation throughout the year. In order to cope with the uncertainties of the external environment faced by the industry in the future, the next step for the industry is to further consolidate the advantages of scale, give full play to the advantages of the complete manufacturing industry system, continue to promote supply-side structural reforms, and accelerate the formation of an innovation-driven flexible supply system. Through material innovation, process innovation and product innovation, we will continue to increase the value-added of products, enhance the industry’s anti-risk capability and development resilience, and further consolidate the foundation for steady improvement of the industry’s economic operation.
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