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Low Price Competition Of Printing And Dyeing Enterprises Is Serious After The "Post Release Period", And The Profit Space Is Compressed.

2020/6/16 11:15:00 0

Printing And Dyeing EnterprisesOperation Pressure

At present, China's epidemic prevention and control situation is further consolidated, and the order of economic and social operation is accelerating. Despite the risk of epidemics spreading abroad, the epidemic in most countries and regions has been alleviated. Since May, countries have gradually liberalized restrictive measures to promote economic restart. However, the huge impact of the epidemic on the global supply chain and industrial chain is hard to repair in the short term. Meanwhile, with the marked increase of unstable uncertainties in the world, the pressure of printing and dyeing enterprises in China is still huge.

In order to understand the order recovery and production management of China's printing and dyeing enterprises after the lifting of the ban, the new problems and demands faced by enterprises during the "post release period" were clarified. Since June 1st, the printing and dyeing industry association of China has carried out a special research on "printing and dyeing enterprises to achieve production and efficiency" on the spot. As of June 7th, a total of 38 valid questionnaires were received. At the same time, our association has submitted the problems encountered by enterprises at present and the realistic policy demands to the relevant departments of the China Textile Association, and is jointly reported to the relevant departments of the Ministry of industry and information, the national development and Reform Commission, and so on by the China Textile Union.

One

The overall impact of epidemic on Enterprises

According to the feedback from the questionnaire, the 38 sample enterprises participating in the survey are all regulated enterprises, with the annual operating income of more than 400 million yuan accounting for 76.32% and the annual operating income of 20 million yuan -4 billion yuan accounted for 23.68%.

In terms of the impact of the new crown epidemic on the production and operation of enterprises, more than 50% enterprises reflected "less impact, some difficulties in the operation of enterprises, but generally remained stable". 10.53% of enterprises reflected that the epidemic situation "brought new opportunities for the development of enterprises", and 7.89% of enterprises reflected that the epidemic had no obvious impact on enterprises. This shows that the risk tolerance ability of large and medium-sized enterprises is relatively strong, and it is in crisis. We can adopt a more positive and effective coping strategy to enable enterprises to "turn the corner". But at the same time, some enterprises have a greater negative impact on the product market and other reasons. 18.42% of the enterprises reflect "a great impact and a temporary pause in business operations". 5.26% of the enterprises reflect "serious impact, business operations face serious difficulties and bankruptcy risks" (see Table 1).

Table 1 overall impact of new crown epidemic on enterprise production and operation

Two

Production and operation of enterprises at this stage

1. production situation

01

Printing and dyeing cloth output

With the gradual resumption of China's economic activities, and since May, countries have been lifted and restarted, China's printing and dyeing enterprises have a good trend in terms of orders, but still far from the normal level of production. According to the summary of the questionnaire, compared with April, 26.32% of the enterprises' output increased, and the proportion of enterprises with a proportion of less than 10% was the highest, accounting for 15.79%; 36.84% of the enterprises in 4 and May were flat; 36.84% of the enterprises in May had a decline in production, of which the proportion of enterprises with a decrease of 10%-30% was the highest (21.05%) (see Table 2) in the proportion of enterprises in the year of May.

Affected by the epidemic, the output of printing and dyeing fabrics has generally decreased this year. Compared with the same period last year, the total output of 1-5 months increased by 2.63% compared with the same period last year, and the proportion increased by 10%. 10.53% of the enterprises were flat compared with the same period last year. Over 80% of the total enterprises decreased compared with the same period last year, and the proportion of enterprises in the 10%-30% decreased by 39.47% (see Table 2).

Table 2 Variation of printing / dyeing cloth output per annulus / year-on-year

02

Capacity utilization rate

The change of capacity utilization rate is basically consistent with the output of printing and dyeing cloth. In May, compared with April, 26.32% of the enterprises had increased utilization of capacity, among which the proportion of enterprises that increased by 10 percentage points accounted for the highest, 18.42%; 36.84% of enterprises in 4 and May were flat; 36.84% of enterprises in May, the utilization rate of production decreased, and the percentage of enterprises with 10-30 percentage points decreased was 18.42% (see Table 3).

The research results of capacity utilization in May were significantly better than those expected in April. The survey results show that nearly 60% of the enterprises in May have been flat or improved in terms of capacity utilization in May, while less than 30% of enterprises made the same forecast in April, indicating that the uncertainty of the global epidemic situation in April has made the enterprises' expectations for future production more pessimistic.

In May, compared with the same period last year, the utilization rate of capacity increased by only 7.89% of enterprises. 7.89% of the enterprises were flat compared with the same period last year, and 84.21% of the enterprises decreased to varying degrees compared with the same period last year. Among them, the proportion of enterprises with 10-30 percentage points reduction was the highest (42.11%) (see Table 3). Data show that in May, the utilization ratio of enterprises reached the highest level of 70%-90% in the same period last year, and the highest proportion in April was the 50%-70% of the same period last year, indicating that the production of enterprises has improved significantly since April.

Table 3 capacity utilization ratio / year-on-year change

2. profit making

01

Main business income

In May, compared with April, the proportion of enterprises with increased main business income accounted for 31.58%, of which the proportion of enterprises increased by less than 10% in April was the highest, accounting for 23.68%, the proportion of flat enterprises accounted for 36.84%, and the proportion of enterprises decreasing was 31.58%, of which, the proportion of enterprises with a reduction of 10%-30% in April was the highest (15.79%) (see Table 4).

The impact of the epidemic on enterprise production has led to a marked decline in the main business revenue this year. In 1-5, compared with the same period last year, the number of main business revenue decreased from 90% to 39.47%, with the highest proportion of enterprises decreasing 10%-30%, and only 7.89% of the enterprises were flat compared with the same period last year (see Table 4).

Table 4 change of main business income / ratio

02

Total profit

In May, compared with April, the total profit of 21.05% of sample enterprises increased, compared with that of April, the proportion of enterprises increased by 10% was 13.16%, the total profit of 4 of the sample enterprises was 4, and the total profit of 36.84% sample enterprises decreased to varying degrees, of which the highest proportion of enterprises that reduced 10%-30% was 13.16% (see Table 5).

Compared with the same period last year, only 2.63% of the sample enterprises increased slightly in total profits in 1-5 months, and 7.89% of the enterprises were flat compared with the same period last year. Nearly 90% of the enterprises were reduced to varying degrees. Among them, the proportion of enterprises with a 10%-30% reduction of the same period last year was the highest, 31.58%, followed by 50% or more enterprises, 26.32% (see Table 5). From the statistics, we can see that the profits of enterprises have declined considerably this year due to the epidemic situation at home and abroad.

Table 5 total profit margin / year-on-year change

03

product price

This year, affected by the epidemic at home and abroad, the sales of enterprise products have been blocked. In order to return the funds as soon as possible, the phenomenon of low price competition has increased, and there have been some disorderly competition in the market. This is also one of the main reasons leading to the total profit decline of enterprises. According to the questionnaire statistics, in May this year, compared with the same period last year, only 7.89% of the sample printing enterprises increased slightly, 28.95% of the enterprises were flat, 63.16% of the enterprises decreased, and only 2.63% of the self operated products prices increased slightly, 34.21% of the enterprises were flat, and 63.16% of the enterprises decreased to varying degrees (see Table 6).

Table 6 changes in printing and dyeing processing fees / prices of proprietary products

3. order status

01

Export orders

Out of the 38 sample enterprises, 1 enterprises did not export. In May, compared with April, 18.92% of enterprises' export orders increased, most of them were less than 10%; 40.54% of enterprises were flat; 40.54% of enterprises had varying degrees of reduction, of which the highest proportion of enterprises that reduced 10%-30% was 21.05% (see Table 7). The survey results were also significantly better than those expected by the enterprises in April. In April, the survey data showed that only 26.53% of the enterprises predicted that the export orders in May would be flat or higher than that in April. Up to 36.73% of the enterprises predicted that the export orders in May would be reduced by more than 50%, indicating that since the entry into May, the export orders of China's printing and dyeing enterprises have been gradually increasing with the opening of foreign markets. Reply.

The total volume of export orders in 1-5 months compared with the same period last year, the overall downward trend is more obvious. The total number of orders for nearly 90% enterprises has declined to varying degrees. Among them, the proportion of enterprises that reduce 10%-30% is the highest, accounting for 34.21%, followed by the reduction of more than 50% of the enterprises, accounting for 23.68%; only 13.51% of the enterprises are flat or slightly increase compared with the same period last year (see Table 7). It can be seen that the export pressure faced by enterprises is still relatively large, and the export orders need to resume for the same period of last year.

Table 7 changes of export orders in ring / year-on-year

02

Domestic order

In May, compared with April, 39.47% of the enterprises' domestic orders increased, of which the proportion of enterprises that increased 10%-30% was 15.79%, the proportion of enterprises increasing by 10% was 23.68%, 26.32% of enterprises were flat, 34.21% of enterprises were reduced to varying degrees, of which the percentage of enterprises with a drop of 10% was the highest, 18.42% (see Table 8). The investigation of domestic orders in May was better than that of the enterprises in April. In April, the survey data showed that less than 40% of enterprises predicted that the order would be flat or slightly increased in May, and the survey data exceeded 60%, indicating that with the consolidation of domestic epidemic prevention and control and the transformation of some enterprises from exports to domestic sales, China's printing and dyeing enterprises will accelerate domestic orders. Restore.

Compared with the same period last year, the total number of domestic orders in 1-5 months increased by 23.68%, and 7.89% of the enterprises were flat. 68.42% of the enterprises decreased to varying degrees. Among them, the proportion of enterprises less than 10% (21.05%) was close to the proportion of enterprises decreasing 10%-30% (23.68%) (see Table 8).

Table 8 ring / year-on-year changes in domestic orders

4. enterprise employment situation

In terms of employment, affected by the epidemic, the same period of the company's orders fell sharply, and the enterprises were forced to reduce their operating costs by layoffs or starting off. According to the survey questionnaire, the number of workers in over 60% enterprises has been reduced to a certain extent compared with the same period last year. The proportion of enterprises with a reduction of less than 10% is 34.21%, only 5.26% of the number of workers is increased compared with the same period last year; and 34.21% of the enterprises are flat compared with the same period last year (see Table 9). In addition, over 70% enterprises started to take turns off or take turns to meet the current shortage of orders.

Table 9 changes in the number of employed persons in Enterprises

5. product structure adjustment

01

New product category

In order to respond positively to the impact of the epidemic on the production and operation of enterprises, a small number of enterprises expand the company's business through improving the production of medical protective textile fabrics and so on, so as to improve the company's efficiency. According to the results of the questionnaire, 2.63% of the enterprises add new melt spraying production line, 5.26% of the enterprises add masks production line, 13.16% of the enterprises add new medical protective clothing production line, 26.32% of the enterprises add other protective functional fabrics, and about 70% of the enterprises are not currently transferred to production (see table 10).

Table 10 new product categories of enterprises

02

Orders for medical protective fabrics

More than 50% enterprises in the past two years participated in the survey. The products produced in the past two years do not involve functional fabrics such as medical protection. Some enterprises are also pressing for the outlet of the epidemic prevention. They are actively adjusting the product structure, rapidly distributing the market for medical protective fabrics, improving the proportion of functional fabrics such as medical protection in the product mix (see Table 11), and actively developing overseas markets (see table 12). 。

Table 112-5 orders for medical protective fabrics in enterprises in April

Table 122-5 export orders for medical protective fabrics

Three

Forecast of orders in the coming months

01

Export orders

According to the questionnaire survey, the enterprises participating in the survey were more rational in the prediction of export orders in June. 35.14% of the enterprises predicted that the export orders in June would increase compared with that in May, while 21.62% of the enterprises thought that they would be flat, while 43.24% of the enterprises thought that they would be reduced, but the reduction ratio was mostly less than 10% (see table 13).

Compared with the same period, nearly 80% enterprises predicted that export orders in June would decrease compared with the same period last year. Only about 20% of enterprises thought that they would increase or remain flat (see table 13). This reflects the impact of the epidemic on enterprises, and it is difficult to recover quickly in the short term. Especially in the backdrop of the spread of the epidemic abroad, the downward pressure on the world economy continues to increase, and the market lacks stability support, and enterprise confidence is affected. Setbacks.

Table 13 forecast of export orders by enterprises

02

Domestic order

According to the survey information, 36.84% of the sample enterprises predict that the domestic orders will increase in June, and the proportion of enterprises with an increase of less than 10% is the highest, 28.95%. 26.32% of the enterprises think June will be the same as May; 36.84% of enterprises believe that June will further decline, and the enterprises with a reduction within 10% will be the majority (see table 14).

Compared with the previous year, about 60% of enterprises predicted that domestic orders in June would still be at a low level compared with the same period last year. Among them, the proportion of enterprises with a reduction of less than 10% (21.05%) was closer to the proportion of enterprises that reduced 10%-30% (23.68%), 23.68% of enterprises thought it would be flat; 15.79% of enterprises thought there would be a slight increase (see table 14). It can be seen that despite the success of our epidemic prevention and control, the impact of the epidemic on China's economy has further suppressed the consumption desire of residents. The sluggish demand will become a long-term existence, and the recovery process of domestic orders will be relatively slow.

Table 14 forecast of domestic orders for enterprises

03

Forecast for orders in 7-8

According to the early understanding of the association, most enterprises believe that orders will improve significantly in 7-8 months. From the point of view of the questionnaire, 16.67% of the enterprises in the export orders predict that they will be able to reach more than 90% of the same period last year in 7-8 months, and 19.44% of the enterprises will be able to reach the 70%-90% level of the same period last year. For domestic orders, 16.67% of enterprises believe that 7-8 can reach 90% of the same period last year, and 44.44% of enterprises can reach the level of 70%-90% in the same period last year (see table 15).

Table 15 forecast of orders for enterprises in 7-8

Four

Coping strategies under epidemic situation

At present, the industry supply side and demand are undergoing unprecedented challenges, facing enormous risk tests. Enterprises adopt a variety of coping strategies and actively carry out production "self rescue". "Stabilizing the existing market and consolidating old customers" is the first strategy of enterprises, with a proportion of up to 94.74%, followed by "automation and intelligent transformation", with a ratio of 55.26%, and 50% enterprises choose to "increase marketing and promotion efforts". Other specific coping strategies are shown in table 16.

Table 16 strategies for enterprises to cope with the epidemic situation

Five

Problems and needs

01

Main problems facing enterprises

With the global spread of the new crown disease, the key problems affecting the industrial development have been changed from the resumption of production to the total impact of the epidemic. Research and statistics show that the most important problem facing enterprises is "slowing market demand and decreasing orders", accounting for 84.21%, followed by "fierce competition in the market, low price competition disrupting market order", accounting for 68.42%. In addition, some enterprises reflect "environmental pressure", "financial pressure", "inventory backlog" and other issues (see Table 17).

Table 17 main problems facing enterprises

02

Policy support for business needs

At present, in the face of the complex international environment and the deep impact of the epidemic on the economy, the industry urgently needs the state to introduce and implement a series of policies to hedge the environmental impact, ensure the safety of industrial development, and give full play to the value of the industry. Research shows that "further measures to reduce taxes and reduce fees" are the urgent policy support for enterprises, accounting for 89.47%, followed by "certain subsidies for electricity consumption and site rentals", accounting for 63.16%. Over 50% of enterprises hope to extend the social security and provident fund free from the slow time limit (see table 18).

Table 18 policy support for business needs

Six

Summary

From the survey results, the production and operation of printing and dyeing enterprises in May is better than that in April, which is better than expected. However, compared with the same period last year, the operating efficiency of enterprises has declined significantly, and it is still necessary for them to fully resume their normal production level.

The positive change of printing and dyeing cloth production and capacity utilization rate was a slight increase in May or even in April, and the production situation of the enterprises did not deteriorate further. However, compared with the same period, most of the enterprises' printing and dyeing production and capacity utilization decreased by 10%-30% compared with the same period last year, and the pressure to resume production is still large.

In terms of product price, under the background of low demand, in order to maintain production and ensure capital chain, the phenomenon of low price competition is more prominent. The price of over 60% enterprises has been reduced to varying degrees compared with the same period last year, and the profit margins of printing and dyeing enterprises have been further compressed.

In terms of export orders, most enterprises stayed at the level of April in May, and some enterprises declined. In terms of domestic sales orders, about 40% enterprises increased by ring in May, and over 20% enterprises achieved year-on-year growth.

For the forecast of export orders in the coming months, most enterprises believe that with the further liberalization of foreign markets and the rise of domestic demand, export orders and domestic orders will improve significantly in 7-8 months, and the growth trend of domestic orders will be more obvious. The supporting role of domestic demand market for industries will be further strengthened.


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