Since the beginning of this year, the international situation has become more complex and severe, the global epidemic continues to spread, the sudden conflict between Russia and Ukraine has intensified the global situation, and the external instability and uncertainty have increased; The domestic epidemic spread in many places and affected many provinces, bringing direct impact to many industries. Some manufacturing enterprises have increased raw material costs, order outflow, increased inventory pressure, industry chain supply chain blocking points increased, cash flow is tight. In this economic environment, China's knitting industry has shown strong economic resilience. The export amount and the operating income of Enterprises above the designated size have achieved double-digit growth, but they are also faced with the problems of declining profit level and weak market activity.
01 the operating revenue continued to grow, and the profit level declined
According to the data of the National Bureau of statistics, in the first quarter of this year, China's knitting industry enterprises above Designated Size achieved a total operating income of 151.678 billion yuan, a year-on-year increase of 12.26%. Among them, 2354 Enterprises above the designated size of knitted fabrics completed 56.554 billion yuan of main business income, with a year-on-year increase of 17.64%; The total income of major knitting enterprises increased by 419.515 billion yuan on a year-on-year basis. But at the same time, the operating costs of enterprises grow faster than the operating income, which directly affects the profitability of enterprises. From January to March, the operating costs of Enterprises above Designated Size in the knitting industry were 134.309 billion yuan, with a year-on-year increase of 13.73%. Among them, the operating costs of knitting fabric enterprises increased by 18.79% and the operating costs of knitting clothing enterprises increased by 10.87%. In the first quarter, the operating cost of knitting industry per 100 yuan of operating income was 88.55 yuan, an increase of 1.15 yuan over the same period of last year.
In the first quarter, enterprises above Designated Size in the knitting industry achieved a profit of 4.084 billion yuan, a year-on-year decrease of 11.21%. Among them, the profit growth rate of knitting printing and dyeing processing enterprises and leisure sports clothing enterprises declined particularly seriously, with the growth rates of - 27.81% and - 45.09% respectively. It can be seen that the sports and leisure clothing market competition is fierce, and the operation of non advantage enterprises is becoming more and more difficult.
From January to march of 2022, the profit margin of Enterprises above Designated Size in knitting industry is 2.69%, with a year-on-year decrease of 0.71 percentage points. Among them, the profit margin of Enterprises above the designated size of knitted fabrics was 3.48%, down 0.42 percentage points compared with the same period of last year; The profit margin of enterprises on the scale of knitted apparel was 2.22%, down 0.91% compared with the same period of last year. It reflects that the profitability of the enterprise has declined and the business situation needs to be improved.
From January to march of 2022, the performance of financial indicators related to the industry varies, increasing and decreasing. In the first quarter, the total assets turnover rate of Enterprises above Designated Size in the knitting industry was 1.36 times / year, 5.43% higher than that in the same period of last year; The turnover rate of finished products was 14.60 times / year, a year-on-year decrease of 3.12%; The three expenses accounted for 7.70%, a year-on-year decrease of 0.49 percentage points.
Among them, in the first quarter of this year, the total asset turnover rate of knitting fabric Enterprises above designated size was 1.34 times / year, which was 6.35% higher than that of the same period of last year; The turnover rate of finished products was 13.88 times / year, a year-on-year decrease of 1.63%; The three expenses accounted for 5.87%, a year-on-year decrease of 0.54 percentage points. The total assets turnover rate of Enterprises above Designated Size of knitted apparel was 1.37 times / year, which was 3.79% higher than that of the same period of last year; The turnover rate of finished products was 15.07 times / year, a year-on-year decrease of 3.77%; The three expenses accounted for 8.79%, down 0.39% year on year.
02 output growth rate is stable and slow, terminal price conduction is not smooth
Over the same period of last year, the total production scale of knitting enterprises was 76.334 billion, up from 2023.3 billion; The growth rate of output was 7.09 percentage points lower than that of the whole year of last year and 28.01 percentage points lower than that of the first quarter of last year, and the growth rate slowed down. The survey shows that with the spread of domestic epidemic in many places, transportation and logistics are blocked, textile and garment professional markets in many places are closed, the demand for new orders of enterprises has fallen, and the industry prosperity index has declined significantly.
In the first quarter, China's producer price index (PPI) rose by 8.7% compared with the same period of last year. Among them, the price of chemical fiber manufacturing industry increased by 9.8%, while the price of textile and clothing industry only rose by 0.9, far below the average level of the whole industry. In the first quarter, the purchase price of industrial producers rose by 11.3%, of which the price of textile raw materials increased by 9.4%. The cotton price is at the historical high level in the past ten years. In 2022, the cotton price in Xinjiang will increase by more than 40.00% year on year; The price of imported cotton rose by about 40% year-on-year. At the same time, the price of end products is not smooth, the market price growth of textile and clothing products is obviously lagging behind, and the profit space of production enterprises is seriously squeezed.
03 export maintains rapid growth, order transfer risk remains
In the first quarter of 2022, the export of China's knitted products still maintains a rapid growth. According to the statistics monthly report of China Customs, from January to march of 2022, China's total export of knitted products reached US $24.036 billion, a year-on-year increase of 24.27%, which was 7.47 percentage points higher than that of China's textile and garment exports. From the perspective of growth rate, the growth rate of the first quarter of 2022 is slightly lower than that of the fourth quarter of last year, but it is still at a high level on the whole. In the first quarter, China's export of knitted fabrics reached 5.638 billion US dollars, up 33.7% year-on-year; The export of knitted garments was 18.399 billion US dollars, up 21.9% year on year.
From the main export markets, China's exports to the traditional main market, the United States, still maintain a high growth rate. The retail performance of clothing products in the United States continued the strong recovery trend of last year. In the first quarter of this year, China's export amount of knitted products to the United States was 4.455 billion US dollars, an increase of 32.25% over the same period of the same period last year, driving the export growth of China's knitted products by 5.62%.
The ASEAN market continued to develop, and the quarterly export volume of China's knitted products to ASEAN region exceeded that of the United States for the first time. In the first quarter of 2022, China's export volume of knitted products to ASEAN ten countries was 4.478 billion US dollars, an increase of 40.02% over the same period of the same period last year, driving the export of China's knitted products to increase by 6.62%. The export of knitted fabrics and knitted garments to ASEAN region has achieved a good growth, and the ratio of export volume of fabrics and clothing is still around 58:42.
With the gradual recovery of the clothing retail market in the European Union, China's export volume of knitted products to the European Union in the first quarter was 3.292 billion US dollars, a year-on-year increase of 30.14%, driving the growth of China's knitting products export by 3.94%.
The Japanese market shows weak demand and weak consumption. In the first quarter, China's export volume of knitted products to Japan was 1.814 billion US dollars, down 0.20% year on year; Among them, the export to Japan was 22.02 billion US dollars, with a year-on-year decrease of 18%.
From the perspective of international market competition, Sino US trade friction and epidemic situation will affect the international trade structure. In recent years, Vietnam's economy has developed rapidly, the share of exports to the United States continues to increase, and the profit growth of enterprises is considerable. After the Spring Festival of this year, Vietnamese textile enterprises returned to work and production on a large scale, and export orders increased significantly. Many textile enterprises' orders have been arranged to the third quarter of this year. Therefore, Chinese enterprises should pay close attention to the international situation, maintain a sense of crisis, and strengthen the consolidation of international market share. After the cost advantage is no longer available, the domestic textile and garment enterprises should improve the added value and technological content of their products through technology, design and creativity. At the same time, they should take advantage of the integrity of China's textile industry chain and supply chain and strong economic development toughness to accelerate the shift to medium and high-end manufacturing production and speed up the pace of high-quality development.
Domestic market growth is not strong, domestic demand needs to be further activated
From the statistical data of Enterprises above Designated Size, from January to March 2022, the proportion of domestic sales of Enterprises above Designated Size in knitting industry was 76.95%, which was 0.99 percentage points higher than that in the same period of last year. Among them, in the first quarter, the proportion of domestic sales of Enterprises above the designated size of knitted fabrics was 87.14%, and that of enterprises on the scale of knitted garments accounted for 70.89%.
According to the data of the National Bureau of statistics, the total retail sales of consumer goods in the first quarter of 2022 is 10.87 trillion yuan, with a year-on-year growth of 3.3%; Among them, the total retail sales of clothing, shoes and hats, needles and textiles of units above the designated size was 328.5 billion yuan, down 0.9% year-on-year.
In March, China's consumer price (CPI) rose by 1.5% year-on-year, 0.6% higher than that of the previous month; Clothing prices (including clothing and shoes) rose 0.7% year-on-year, up 0.4% month on month. In the case of moderate increase in clothing prices, the total retail sales of clothing consumption showed a downward trend, indicating that the domestic market is not active enough, and residents' consumption intention needs to be improved.
On the whole, 2022 will start smoothly on the whole, and the trend of sustained economic recovery remains unchanged. Affected by the epidemic situation in April and the domestic epidemic prevention and control policies, it will bring greater pressure on the operation of the industry in the second quarter. With the orderly promotion of the resumption of work and production in various regions, superimposing policy support, such as supporting the development of small and medium-sized enterprises and promoting the stability and quality of foreign trade and other policies and measures to help stabilize the economy and stabilize the industrial chain supply chain, will be conducive to the healthy operation and development of the industry.
(source: China Knitting Industry Association)