Current Situation of Printing and Dyeing Industry

Since 2012, due to insufficient domestic and foreign demand, high upstream dye costs, increased pressure on environmental protection and emission reduction, the production scale of this industry has declined year by year, and rebounded in 2016, reaching 49.069 billion meters in 2018. From January to December 2019, the printing and dyeing fabric output of printing and dyeing enterprises above designated size was 53.763 billion meters, an increase of 2.80% year-on-year, and the growth rate was 0.17 percentage points higher than that in 2018. In the first quarter of 2020, the printing and dyeing fabric output of printing and dyeing enterprises above designated size was 9.401 billion meters , A year-on-year decrease of 15.15%. In February 2020, the domestic epidemic prevention and control situation is severe, transportation and logistics are blocked, and the industry is facing difficulties in resuming work and production. Since March, as the domestic epidemic prevention situation has improved, work and production have continued to resume, and the decline in output has shrunk by 7.27 percentage points from the previous two months. By the end of the first quarter of 2020, although the reproductivity of the printing and dyeing industry has reached a very high level, the overall capacity utilization rate is still very low.

In the first quarter, the industry’s operating efficiency declined and corporate losses increased

According to data released by the National Bureau of Statistics, from January to December 2019, 1,633 printing and dyeing enterprises above designated size achieved main business revenue of 283.153 billion yuan, a year-on-year increase of 0.83%; realized total profits of 15.835 billion yuan, a year-on-year increase of 6.49%.

Affected by the epidemic in the first quarter of 2020, domestic and foreign demand has weakened, and most companies are operating poorly. Some companies’ product prices or processing fees have fallen. In addition, due to the lack of flexibility in expenditures such as wages and rents, as well as the increase in epidemic prevention, epidemic prevention and transportation costs, the company's profitability has dropped significantly. The printing and dyeing enterprises above designated size realized revenue of 48.535 billion yuan from main business, a year-on-year decrease of 23.64%. The total profit achieved was 1.213 billion yuan, a sharp drop of 43.08% year-on-year. However, compared with the data from January 2020 to February 2020, since March, with the continuous improvement of the domestic epidemic prevention and control situation, the resumption rate and productivity of enterprises have continued to increase, especially the government's support for the industry The policy continues to achieve practical results. The industry's prosperity has rebounded, and the decline in main business income and total profits of regulated companies has decreased by 6.24 and 58.72 percentage points from January and February, respectively.

In the first quarter, industry operating indicators declined, and total imports and exports of foreign trade enterprises declined

From January to December 2019, the proportion of the three expenditures of printing and dyeing enterprises above designated size was 6.72%, an increase of 0.16 percentage points year-on-year, of which 6.44% was used for cotton printing and dyeing and finishing enterprises, and 8.92% was used for chemical fiber fabric dyeing and finishing enterprises; cost and The profit rate was 6.06%, an increase of 0.39% year-on-year; the sales profit rate was 5.59%, an increase of 0.30% year-on-year; the finished product turnover rate was 21.72 times per year, down 0.80% year-on-year; the accounts receivable turnover rate was 8.17 times/year , An increase of 8.74%; the annual asset turnover rate was 1.10 times, a year-on-year increase of 1.44%.

The overall operation of the industry in the first quarter of 2020 is in a difficult state, and the main quality and efficiency indicators show a year-on-year downward trend. The three cost ratios of printing and dyeing enterprises above designated size were 7.95%, an increase of 0.65% over the same period in 2019. Among them, cotton printing and dyeing enterprises accounted for 7.56%, and chemical fiber printing and dyeing enterprises 11.41%. The cost and expense margin was 2.60%, a decrease of 0.92 percentage points from the same period in 2019; the sales margin was 2.50%, a decrease of 0.85 percentage points from the same period in 2019; the finished product turnover rate was 3.58 times a year, a year-on-year decrease of 38.13%. The account receivable turnover rate was 1.81 times/year, a year-on-year decrease of 25.25%; the total asset turnover rate was 0.19 times/year, a year-on-year decrease of 25.25%.

The above data is extracted from the "Analysis Report on China's Printing and Dyeing Industry Demand and Investment Prospects".