In the first six months of this year, the total revenue of textile enterprises in the above mentioned enterprises was 2929.73 billion yuan, up 13.3% year on year. Profits totaled 135.1 billion yuan, up 16.6 percent year on year.

The profit growth rate of the turning point looms in the textile industry

Intern reporter zhao lingling

The textile industry in China suffered after last year's "cold current", in the first half of this year, the industry with a sharp decline in the quality of economic operation situation, showing significant signs of recovery, the industry generally optimistic expectations of the market. Now, the unfavourable factors that the industry is still exist, but domestic demand market fundamentals still good, with the steady progress was made in structural adjustment and transformation and upgrading, China's textile industry or will usher in a turning point in the second half.

Textile industry development

There has been a recovery

In the first half of 2013, the economic operation data of textile industry was released. According to the national bureau of statistics and customs statistics, the total revenue of textile enterprises in the first six months of this year was 2929.73 billion yuan, up 13.3% year on year. Profits totaled 135.1 billion yuan, up 16.6 percent year on year. From January to June, the total export of textile clothing in China increased by 11.85% year on year. The total fixed asset investment of the total fixed assets of RMB 5 million yuan was 391.59 billion yuan, up 15% year-on-year.

Zhu qinghua, a researcher at cic, told the China enterprise newspaper that the figures indicate that the textile industry has seen a recovery in the first half of the year. To realize the basic reasons of steady growth, the indicators Zhu Qinghua analysis, on the one hand, the main raw material of textile cotton price is on the decline in the first half of this year, which effectively improves the profit margins of the textile industry; On the other hand, there is a significant increase in textile export volume, which provides a good market basis for the development of textile industry.

Since the beginning of this year, there has been a fluctuation in the stock market of our country, and many people think that the winter has passed, while the market is turning in a twist when the bull market is coming. Textile enterprises have formed a beautiful landscape in the case of overall market weakness.

"After the hard years of 2012, things are starting to pick up in the textile industry this year. Exports of raw silk and cotton yarn prices have also started to rebound. Compared with last year, this year the total exports of textiles and increase the export growth has very big margin, and domestic cotton prices decline gradually, enhanced the performance of the textile industry in our country." The head of a textile business in hangzhou, zhejiang province, told the China enterprise news.

Driven by rising incomes and falling costs, the growth of profits in the textile industry has accelerated. Since hitting bottom in June 2012, the main business income of textile industry has grown by 15%, and profit growth has recovered to more than 20%. Thus, the recovery of the textile industry has driven the textile industry to be good, as it continues, the textile industry will be strong in the second half of the year.

Pressure remains

Overseas "xinjiang"

In the first half of the year, despite the steady growth of the economic performance indicators in the industry, there are obvious signs of recovery, but there are still some problems that cannot be ignored in the operation of the industry economy.

Zhu Qinghua thinks that this stage of our country textile industry mainly three aspects of problems: first, transform and upgrade production capacity has not been implemented, only a small number of firms to focus on technology research and development, low product added value; Secondly, the textile industry has a low brand degree, which compacts the profit margin of textile enterprises. Thirdly, the industry concentration is low and the competition is fierce.

The information center of the China textile industry federation and the China textile and economic research center jointly pointed out that the external situation of the textile industry in the second half of the year is still relatively complicated. On the one hand, the favorable factors that support the development of the industry still exist, and the fundamentals of domestic demand market are still sound, with the conditions for maintaining steady growth. The industry restructuring and transformation and upgrading will continue, which will strengthen the internal impetus of industry development. On the other hand, the various external pressures facing the industry cannot be ignored.

"At present, China's textile industry labor costs is 1 to 3 times higher than the southeast Asian countries, the high cost of more than 30%, cotton in developed countries and southeast Asian countries have low tariffs, even give full play to the industry system and production efficiency advantages, cheap product international competitiveness have been significantly decreased." Recently, wang tiankai, President of the China textile industry federation, was deeply concerned about the future of China's textile industry.

The rising cost of raw materials, rising labor costs, and the basic undoing of the land... China's textile industry faces severe development bottleneck. Obviously, it is a great way to achieve sustainable development by investing overseas and establishing efficient multi-national supply chain to realize optimal allocation of resources.

To this end, hongdou, bosideng, tianhong, shenzhou and other enterprises have set up shop overseas. Obviously, the cost advantage of land and labor is the initial driving force for many large enterprises to invest overseas.

"The base salary in our park is about $100 a month." When it comes to the reason, hongdou group vice President of 23 just introduced, Shanghai's operators each monthly salary is $439, compared to Shanghai, really cheap many, the money saved can be converted into corporate profits.