Review: Analysis On Economic Operation Of Printing And Dyeing Industry From January To December 2020

In 2020, the Xinguan epidemic will continue to spread, and the world's century change will accelerate its evolution. China's printing and dyeing industry has experienced ups and downs, withstood complex and severe tests, and achieved a difficult recovery under the severe impact of the epidemic, and the industry as a whole has maintained a good recovery trend. By the end of 2020, the production capacity utilization rate of printing and dyeing enterprises will basically return to the same level in 2019, but the operation and profitability of enterprises will still decline significantly compared with the same period in 2019, and the industry will still face great pressure to return to the level before the epidemic.

1. The growth rate of production has risen steadily

According to the data of the National Bureau of statistics, from January to December, the output of printing and dyeing enterprises above Designated Size reached 52.503 billion meters, a year-on-year decrease of 3.71%, and the decline rate of output was 3.50 percentage points lower than that from January to November, which was the largest since the fourth quarter.

Figure 1 output and year-on-year change trend of printing and dyeing enterprises above Designated Size since 2020

In December, the output of printed and dyed fabrics reached 6.254 billion meters, a year-on-year increase of 16.98%, which was the largest single month output since 2020. Since September, the single month output of printed and dyed fabrics has achieved positive growth for four consecutive months, indicating that the industry production has been accelerating the recovery trend since the fourth quarter.

Figure 2 monthly output and year-on-year change trend of printing and dyeing enterprises above designated level since 2020

2. The operation quality continued to improve, but the recovery process was relatively slow

According to the data of the National Bureau of statistics, from January to December, the proportion of three fees for printing and dyeing enterprises above designated size was 6.97%, with a year-on-year increase of 0.28 percentage points, including 6.70% for cotton printing and dyeing enterprises and 9.01% for chemical fiber printing and dyeing enterprises. The turnover rate of finished products was 17.85 times / year, with a year-on-year decrease of 20.05%; the turnover rate of accounts receivable was 7.99 times / year, with a year-on-year decrease of 21.31%; the turnover rate of total assets was 0.94 times / year, with a year-on-year decrease of 14.95%.

Compared with that from January to November, the proportion of three fees decreased by 0.02 percentage points; the decrease of turnover rate of finished products, accounts receivable and total assets decreased by 2.63, 2.76 and 1.34 percentage points respectively. Since the third quarter of 2020, with the continuous improvement of the domestic epidemic prevention and control situation, the operation quality of the printing and dyeing industry has been continuously improved. However, compared with the production recovery process, the gap between the main operation quality indicators from January to December 2020 and the same period in 2019 is still obvious, and it will take time for the industry to achieve comprehensive recovery.

3. Economic benefits continue to recover, but the pressure of profit is still outstanding

According to the data of the National Bureau of statistics, from January to December, the main business income of printing and dyeing enterprises above designated size was 254.132 billion yuan, a year-on-year decrease of 12.15%; the cost of main business was 218.995 billion yuan, a year-on-year decrease of 11.91%, accounting for 86.17% of the main business income; the total profit was 12.668 billion yuan, with a year-on-year decrease of 19.01%; the profit rate of cost and expense was 5.35%, with a year-on-year decrease of 0.49%; The sales profit margin was 4.98%, down 0.43% year-on-year; the export delivery value was 34.591 billion yuan, a year-on-year decrease of 16.83%. Compared with January November, the main business income and total profit decreased by 1.88% and 3.90% respectively, the cost profit margin and sales profit margin increased by 0.39% and 0.34% respectively, and the export delivery value decreased by 1.11%.

From January to December, 431 of 1581 printing and dyeing enterprises above the designated scale suffered losses, accounting for 27.26%, an increase of 8.34 percentage points on a year-on-year basis, and a decrease of 4.24 percentage points compared with January November; the total loss of loss making enterprises was 1.889 billion yuan, with a year-on-year increase of 15.82%, and the growth rate was 18.79 percentage points lower than that of January November.

After the economic benefits of printing and dyeing enterprises experienced significant fluctuations in the first half of the year, the main economic indicators in the second half of the year showed a gradual recovery trend. Compared with the first half of the year, the profit situation of the printing and dyeing enterprises was obviously improved, but the year-on-year decline was still large, and the industry profit trend should be further consolidated.

At present, the global epidemic situation has not been fundamentally alleviated, the uncertainty of the external environment is still high, the industrial recovery foundation is not firm, and the difficulties and problems such as the increased comprehensive cost of the industry, the arduous task of environmental protection and the aggravation of market competition, etc., the stable operation of the industry is facing many tests. But at the same time, as the only major economy in the world to achieve positive growth in 2020, China shows strong economic development toughness, which provides a strong guarantee for the sustainable recovery of the printing and dyeing industry. In 2021, under the background of speeding up the construction of the "double cycle" new development pattern dominated by domestic large cycle, relying on China's largest and most complete textile industry system in the world, the printing and dyeing industry has the foundation and conditions for steady economic operation.