Overall smooth running despite growth decline in number of indicators

Recently, the China Textile Industry Association held 2011 textile and economic operation analysis meeting. The meeting held that the 2011 overall economic operation of China’s textile industry was stable, the indicators are normal, but various types of risk faced by the operation was significantly increased, raw material price fluctuations, tight financing environment, the various elements and labor costs increased, external demand growth low, all those factors increase the operating pressure. Since the second half of last year, industry production and sales, investment, and efficiency growth slowed down every month and quarter, the decline of efficiency growth rate is particularly prominent, small enterprises encountered greater difficulties in their operations.

2011, China’s large scale textile enterprises operation indicators overall maintained a rapid growth, but subject to many pressures, the growth of key indicators were slowing down month by month.

According to the National Bureau of Statistics, 2011, there are more than 36,000 textile enterprises in the country realized an total industrial output value of 5.47865 trillion Yuan, an increase of 26.8 percent year-on-year, compared with the first quarter, the growth rate down 4.8 percentage points. The industry realized a total gross profit increased by 25.94% year-on-year, compared with the first quarter and the first half of the year, the growth rate decreased by 27.63 percent and 15.31 percent separately.

From the investment, the whole industry actually completed investment in fixed assets grew by 36.33 percent, the growth rate compared with the first quarter, down 2.18 percentage points, in the western region increased significantly.

From the export side, China’s textile and clothing exports amounted to $ 254.123billion in 2011 , an increase of 19.87% year on year, while the growth rate down 3.89 percentage points, the decline started since April.

Domestic demand is still an important support for the development of the industry. In 2011, domestic output value increased by 29.53% year-on-year, compared with the first quarter slowed down by 4.05 percentage points, compared with the first half, slow down by 2.89 percentage points. But the proportion of domestic sales continued to increase over the 82.91 percent, 1.71 percentage points up over the previous year.

Operation quality steady, whereas finance charges increased. In 2011, the industry-wide labor productivity (gross industrial output value) increased by 20.17 percent year on year, amounting to 533,800 Yuan / person, including chemical fiber, cotton, textile machinery industry, labor productivity growth was the most obvious. Industry fee proportion compared to the same period last year, down 0.19 percentage points to 5.82 percent, but the proportion of financial costs increased. Financing is the main factor for fast rise of finance costs. According to the investigation of China textile alliance of 2011, corporate finance difficulties to become the third largest, after labor, raw materials cost pressures.

Exports and benefits decline more obvious this year. In 2012, the internal and external environment facing by China’s textile industry is still very complicated, the uncertainty lies in many factors. Expected that, in 2012, production & sales, and the benefits of China’s textile industry will continue to grow, the main operating indicators of the large scale enterprises are expected to maintain double-digit growth, but the growth has slowed compared with 2011. Among them, under the conditions of the economic downturn, the terminal markets’ ability to withstand the consumer price increases is limited, it is expected that the industry’s export and the benefits growth rate will decline more evidently, the difficulties faced by the small and medium-sized processing enterprises will become more prominent.