Textiles and clothing are at the bottom of history

Due to the weakening demand in the international market, slowing growth in domestic market demand, and excessive domestic and foreign cotton price differences, the profits of the textile industry have continued to decline, and the company’s losses have expanded. In the first five months, nearly 20% of textile enterprises above designated size suffered losses, and the amount of losses increased by 128.5% over the same period of last year.

The data released by the Ministry of Industry and Information Technology on Friday showed that from January to May, textile enterprises above designated size realized total profits of 91.7 billion yuan, a year-on-year decrease of 2.4%, and the growth rate was 40.5 percentage points lower than that of the same period of the previous year; the enterprises above designated size achieved a loss of 18.6%. , 5.4 percentage points higher than the same period of last year; loss of loss-making enterprises increased 128.5% over the same period of last year, an increase of 122 percentage points over the same period last year.

The Ministry of Industry and Information Technology predicts that textile companies will remain in a difficult position in the second half of the year, and textile and apparel exports will continue to grow at a low level. The overall profit growth of the industry will decline sharply from the previous year, and the loss level of enterprises and the losses of loss-making enterprises will also expand. Many small and medium-sized micro-enterprises will face the risk of elimination.

The central bank cut interest rates twice in January, to some extent eased the financial pressure on the textile industry. Data show that from January to May, interest expenditure on textile enterprises above designated size increased by 28.6% year-on-year, 18.4 percentage points higher than the growth rate of main business income during the same period, while the growth rate of interest expenses during the same period last year was only 6.8 times higher than that of main business income. Percentage. Industry analysts believe that after the RRR and interest rates are lowered, more "steady growth" measures are expected to be introduced. The stabilization of the domestic economic situation will become an important support for the operation of the industry.

Tan Ke, a researcher in Dongxing Securities' textile and clothing industry, believes that exports have already begun to show signs of slow recovery, and the corresponding textile and apparel export varieties have been at the bottom of history. Once the recovery trend is further confirmed, it is expected to outperform. The plate can pay attention to the listed products with excellent texture and relatively high exports.

Data from the Ministry of Industry and Information Technology shows that exports of textile enterprises have maintained growth. From January to May, China's textile and apparel exports reached US$90.6 billion, a year-on-year increase of 2.1%, which was lower than the 8.7% increase in the country's cumulative export of goods, of which textile exports increased by 1.4% year-on-year, and apparel exports increased by 2.5% year-on-year.