[Whole Industry] Operation Performance of China Textile Industry in Q1, 2011-Texglobe

China's Ministry of Industry and Information Technology has raised the bar on the calibration of above-scale companies. The threshold of above-scale company definitions rose from annual sales of five million RMB to twenty million RMB.

Changes after the adjustment:

For the first quarter of 2011:
- There are 35,317 above-scale companies engaging in textile business, reducing by 20,185 compared with the yearend of 2010(55,502).
- There are 9.66 million people working in textile industry, reducing by 1.54 million people compared with yearend number of 2010.
For the first two months of 2011:
35,253 companies realized sales revenue surpassing twenty million RMB. These companies accounted for 90.69 percent of the industrial output and 96.31 percent of earnings realized by the companies with overall output surpassing five million RMB in the same period.

Output growth remained steady

Overall industrial output of above-scale companies over the first quarter of 2011 reached 1109.5 billion RMB, rising by 31.62 percent year-on-year. The sales-to-output ratio reached 97.68 percent, slightly down by 0.09 percentage points from last year.

Of the ten major subsectors of textile industry, bast and leaf fiber industry witnessed the most significant growth reaching 45.19 percent year-on-year while printing and dyeing industry saw the slowest growth at 20.76 percent. Growth of each sector has exceeded twenty percent.

Fig.2 Year-on-Year growth by sector

Fixed-asset investment

Latest statistics unveiled by the Statistics Center of China National Textile and Apparel Council suggested that fixed asset investment (with more than five million RMB of funds invested) of China textile industry rose by 38.51 percent from the same period of the previous year. The investment growth velocity of Q1, has dropped 1.85 percentage points from the first two months, though still 19.38 percentage points higher than 2010. As one of the most important investment barometers, the number of newly initiated programs has declined by 5.8 percent year-on-year and the growth velocity of which has dropped 24.93 percentage points. Declined new programs and increased overall investment suggested that single investment volume has expanded.

Fig.3 Fixed-asset investment growth by sector

Fig.4 Newly initiated programs growth by sector

Fig. 5 Geographic investment situation

Apparel industry has witnessed 31.133 billion RMB of investment over the first quarter of 2011, rising by 34.94 percent year-on-year, which is 12.96 percentage points higher than the same period of last year, accounting for as much as 30.92 percent of the industrial investment total. 2,723 new programs were kicked off, slightly rising by 1.57 percent year-on-year.

Fig.7 Textiles export outpaced garments export

Fig.8 Export price index of textiles and garments

CHINA TEXTILE LEADER