The Textile Industry Is Losing Money, And Profits Are Showing Negative Growth In The First Half Of This Year.

The industry says the pressure to survive is unprecedented.

With the industry's early warning,

The first half of the performance of the listed companies has been released, and the domestic textile industry is now in a dilemma.

According to the data released by the Ministry of industry and Commerce recently, the loss of Xinjiang textile enterprises has reached 65%, and the sales revenue of the whole industry has dropped by 25%, and the loss of the whole industry has exceeded 300 million yuan.

It is understood that cost increase, order reduction and financing difficulties are the three big mountains on textile enterprises. Many SMEs have to face the risk of bankruptcy.

Analysts say the textile industry will accelerate the integration of shuffle.

Production loss due to insufficient production

"Textile enterprises are facing unprecedented pressure to survive."

First textile network editor in chief Wang Cheng in an interview with the new express reporter analyzed that at the moment, the textile industry is subject to rising costs and shrinking demand at the two ends, excess capacity.

The first textile network statistics show that since 2012, the operation of the textile industry has deteriorated rapidly, and the major business indicators have dropped sharply.

Among them, exports increased by 0.48%, consumption increased by 14.6%, industry profits were 2.21% negative growth, and the number of loss making enterprises in textile enterprises above designated size increased by 35.5% over the same period last year.

The total grew 95.9% year-on-year.

According to the Henan Cotton Association, many small textile enterprises have not started production since the beginning of the year.

The news of China Cotton Textile Association also shows that the loss of its tracking enterprises has reached 40%, and the spinning enterprises below 30 thousand spindles have cut production and production close to 50%.

It is reported that the main reason is cotton yarn sales difficulties, enterprises can not receive larger orders, cotton yarn is now at a loss in production and sales, textile enterprises are reluctant to start production.

Another manifestation of insufficient operating rate is the backlog of raw material inventory.

According to the statistics of China Cotton Association cotton storage branch, as of the end of June 2012, the total turnover of commodity cotton turnover was 942 thousand tons, an increase of 159 thousand tons compared with the same period last year.

Wang Qianjin introduced that in 2010, there was little inventory of textile enterprises, but this situation has been reversed since November 2010 when cotton prices plummeted, and textile enterprises' inventories rebounded obviously. As orders fell, sales of yarn and cloth were stagnant. Textile mills could only sell prices continuously in order to get rid of inventory, but downstream purchases were sluggish.

Listed companies announced losses one after another

The performance report of relevant listed companies is more evidence of the current predicament of the textile industry.

Wei Qiao textile, a weathervane of the textile industry, issued a performance warning notice yesterday, saying that profits in the first half of 2012 will be significantly lower than the same period last year.

The company said the textile market at home and abroad continued to be weak in the first half of the year, resulting in a decline in demand for textiles. Since September last year, domestic cotton prices were at a low level, coupled with a sharp decline in international cotton prices. Therefore, it is more difficult to upgrade cotton textiles, thereby affecting their profit margins.

Huarun Jinhua (000810, stock bar) (000810) has also issued an early warning recently. Its net profit in the first half of this year is about -250 million yuan - -300 million yuan, down 106.45% - 107.75% compared with the same period last year.

The company said that the price of cotton textile business was greatly reduced compared with the same period last year, resulting in a decline in gross margin, resulting in a large loss in its cotton textile business.

Roley's home textile (002293, stock bar) (002293) amended the interim results, saying that the "expected first half net profit growth of 30% less than the same period" dropped to 30% over the same period, and the performance was completely reversed.

Wang said that oversupply is the main predicament of the textile industry.

Although there are signs of recovery in the US economy, a large number of orders go to Southeast Asia, India and other regions and countries. The domestic market has led to price increases and suppressed demand because of the high cost.

In addition, the excessive expansion of the industry has exacerbated the extent of oversupply.

Wang Heng analysis thinks that "polarization and survival of the fittest" will become the main keynote of the industry development in the next few years, so as to promote the pformation of the textile industry from "scale economy" to "value economy", so as to break the essential factors of production.

And the pressure of increasingly fierce competition in the international market to achieve sustainable development.