China textile industry chain analysis in 2022

The textile industry is a traditional pillar industry of China's national economy and an important industry for people's livelihood, as well as an industry with obvious international competitive advantages in China, playing a very important role in booming markets, expanding exports, absorbing employment, increasing national income, and promoting urbanization development.

1、Industrial chain

The upstream of China's textile industry chain is raw materials and textile machinery; the midstream is textile processing and finished product manufacturing; the downstream is various marketing and distribution channels, and finally reaches the end consumer.

China's textile industry listed companies are mainly located in coastal areas, of which Zhejiang has the most.

2、Upstream analysis

2.1、Cotton

(1) Production

China's cotton production in 2021 5.731 million tons, down 180.0 million tons or 3.0% from 2020. Among them, Xinjiang cotton production of 5.129 million tons, 32,000 tons less than the previous year, down 0.6%; other regions cotton production of 602,000 tons, 147,000 tons less than the previous year, down 19.6%. China Business Industry Research Institute expects China's cotton production will reach 6.02 million tons in 2022.

(2) Regional distribution

The regional distribution of cotton production is influenced by the planting area. Currently 83% of the cotton planted in Xinjiang, China nearly 90% of cotton production in Xinjiang. Within China, the highest single production and the best quality of cotton growing area is Xinjiang.

There are three main reasons for the good quality of cotton in Xinjiang, one is that the sunshine hours meet the needs of cotton growth; two is the low precipitation, arid climate, which helps to improve the quality of cotton; three is that the soil conditions are suitable for the growth of cotton. Of course, the temperature difference between day and night will also have a certain impact on the quality of cotton, but this effect is not the main.

(3) Analysis of key enterprises

2.2、Chemical fiber

Chemical fibers are fibers with textile properties made from natural polymer compounds or synthetic polymer compounds as raw materials, through the preparation of spinning stock, spinning and post-treatment processes. China's chemical fiber production has been maintaining stable growth after a small decline in 2017, and as of November 2021, China's chemical fiber production reached 61.393 million tons, up 10.3% year-on-year.

3、Midstream analysis

3.1、Revenue situation

From January to October 2021, textile enterprises above the scale achieved revenue of 413.88 billion yuan, up 14.2% year-on-year; achieved total profit of 198.3 billion yuan, up 29.7% year-on-year. The retail sales of clothing, shoes, hats, needlework and textiles in China's above-unit quota grew by 17.4% year-on-year; the retail sales of online wearing goods in China grew by 14.1% year-on-year, with an average growth of 3.0% in two years.

After China's accession to the WTO, in the strong impetus of domestic and international market demand, the development of the textile industry into the "fast lane", the industry scale and economic benefits continue to grow.

From 2016 to 2019, the price of textile products fell and sales declined; the sales of textile products in China reached 308.197 billion yuan in 2016 and dropped to 231.295 billion yuan in 2019. 2020, the outbreak of the epidemic, the demand for emergency prevention and control materials such as masks and protective clothing increased within a short period of time, and sales further increased to 319.84 billion yuan, and with the the epidemic is under control, it is expected that the sales of textile products for production in China will level off in 2022 and will reach 278.13 billion yuan.

3.2. Capacity utilization rate

In the first half of 2021, the capacity utilization rate of China's textile manufacturing industry improved. in the second quarter of 2021, the capacity utilization rate of the textile industry reached 80.9%; in the first half of 2021, the capacity utilization rate of the textile industry was 79.7%, respectively, higher than the level of 77.9% of China's industry in the same period, and 9.4 percentage points higher than the same period in 2020.

3.3, industrial value added

From January to October 2021, the industrial added value of textile enterprises above the scale grew by 5.5% year-on-year, slowing down by 1.4 percentage points compared with the first half of the year. The output of chemical fiber, yarn, cloth, printing and dyeing cloth and garment of enterprises above the scale increased by 11.8%, 11.6%, 9.1%, 18.0% and 8.9% year-on-year respectively.

3.4, the operation of textile enterprises

In the first half of 2021, 18,407 enterprises in the textile industry, 4,130 loss-making enterprises, down 23.8% year-on-year, with a loss of 8.83 billion yuan, down 21.7%. Loss surface 22.4%, down 7.8 percentage points from the same period last year, the overall loss decreased.

3.5, key enterprise analysis

4, downstream analysis

In 2021, the domestic demand for textiles and clothing market has steadily recovered, and the industry's economic operation has steadily rebounded to enhance the pulling effect. According to China's National Bureau of Statistics data, in 2021 China's total retail sales of apparel, footwear, needlework and textiles above the quota reached 138.42 billion yuan, up 12.7% year-on-year.