In the first three quarters of 2021, facing the complex situation of increasing risks and challenges at home and abroad, my country's textile industry has fully implemented the decisions and deployments of the Party Central Committee and the State Council, continued to consolidate the results of epidemic prevention and control and the smooth and stable industrial cycle, and actively responded to the challenges of local epidemic flood conditions. The overall prosperity of the industry has maintained an expansion trend, corporate efficiency has steadily improved, investment confidence has continued to recover, and major operating indicators have achieved a steady recovery from the low base of the same period last year, and the overall development trend has been maintained. Looking forward to the fourth quarter and 2022, the development situation facing the textile industry is still complex, unstable and uncertain factors still exist, and maintaining stable operation still faces many challenges.

1. The boom of the industry maintains expansion and production continues to recover

       Since 2021, with the overall stability of the domestic epidemic prevention and control situation and the recovery of domestic and foreign market demand, the textile industry's prosperity has continued to be in the expansion range, and the level of capacity utilization has been generally good. According to the survey data of the China National Textile and Apparel Council, in the third quarter of 2021, the prosperity index of my country's textile industry was 58.7, which was above the 50 decline line for 6 consecutive quarters. Although it was down by 6.7 percentage points from the second quarter of this year, the prosperity index of the industry was still at a high level. . According to the National Bureau of Statistics, in the first three quarters, the textile and chemical fiber industry capacity utilization rates were 79.6% and 85.2%, both higher than the national industrial level of 77.6% during the same period, and 7.2 and 6.1 percentage points higher than the same period last year.

       The production situation in the textile industry recovered steadily. According to the National Bureau of Statistics, in the first three quarters of 2021, the added value of the textile industry above designated size increased by 6.3% year-on-year, and the growth rate rebounded by 10.9 percentage points from the same period last year, but fell by 14 and 3.3 percentage points respectively from the first quarter and the first half of this year. Calculated with the third quarter of 2019 as the base period (the same below), the two-year average growth rate is 0.7%, indicating that the industry's production scale has exceeded the level before the epidemic. The production of over 80% of the links in the industrial chain maintained steady growth. In the first three quarters, the added value of the textile, chemical fiber, and clothing industries increased by 3.7%, 10.7%, and 9.2% year-on-year, respectively. The average growth rate of the added value of the textile and chemical fiber industries reached 1% and 5.3%.

2. The domestic demand market has steadily improved, and the export growth momentum has maintained good

       In the first three quarters of 2021, driven by the continuous recovery of the national economy, the promulgation of measures to promote consumption and expansion of domestic demand in various regions, and multiple holiday consumption factors, the domestic textile and apparel market in my country has withstood the impact of local epidemics and floods, and the recovery has been consolidated. According to the National Bureau of Statistics, in the first three quarters of 2021, the total retail sales of clothing, footwear, and knitting textiles above designated size increased by 20.6% year-on-year, and the growth rate rebounded by 33 percentage points from the same period last year, with an average growth rate of 2.8% over the two years. Online consumption continues to play a role in stimulating the domestic demand market. In the first three quarters, the national retail sales of online clothing products increased by 15.6% year-on-year, the growth rate increased by 12.3 percentage points from the same period last year, and the two-year average growth rate was 9.3%.

       Affected by the rebound in international market demand and the return of some overseas orders, my country's textile and apparel exports have maintained a good growth. However, due to the reduction in the scale of epidemic prevention materials exports, the industry's export growth rate has shown a slowdown. According to data from China Customs Express, in the first three quarters of 2021, my country's textile and apparel exports totaled 227.59 billion U.S. dollars, a year-on-year increase of 5.6%, and the growth rate slowed by 6.5 percentage points from the first half of the year, with an average growth rate of 6.2% over the two years. The apparel export situation has improved significantly. In the first three quarters, apparel exports reached 122.41 billion U.S. dollars, a year-on-year increase of 25.3%, the highest growth rate in the same period since 2010, with an average growth rate of 4.2% in two years. Since the beginning of this year, the demand for international epidemic prevention materials has continued to fall. In the first three quarters, my country’s exports of masks and protective clothing decreased by 79.4% year-on-year. Affected by this, textile exports were US$105.18 billion, a year-on-year decrease of 10.7%, but the two-year average growth rate still reached 8.6%.

3. Corporate benefits are steadily restored and investment confidence continues to be consolidated

       According to the National Bureau of Statistics, in the first three quarters, 34,000 textile enterprises above designated size across the country achieved a cumulative operating income of 36,720.6 billion yuan, a year-on-year increase of 15.6%, an increase of 27.7 percentage points from the same period last year, and an average increase of 0.8% in two years; The total profit was 171.05 billion yuan, a year-on-year increase of 31.7%, a growth rate of 43.8 percentage points higher than the same period last year, and an average growth of 7.6% in two years; the operating income margin was 4.7%, an increase of 0.6 percentage points from the same period last year. More than 90% of the textile industry chain’s benefits have increased well, and profits of more than 70% have increased by more than 30%. Driven by the increase in commodity prices, the total profit of the chemical fiber industry in the first three quarters increased by 318% year-on-year, and the operating income margin Reaching 6.3%, the profit level ranks first in the entire industry chain. The operational efficiency and capital turnover of enterprises have been improved. In the first three quarters, the turnover rate of finished products and total asset turnover of textile enterprises above designated size nationwide were 12.8 times/year and 1.1 times/year, respectively, an increase of 8.7% and 8.9% year-on-year; The fee ratio was 6.6%, a decrease of 0.4 percentage points from the same period last year.

       Corporate investment confidence continued to be consolidated, and the scale of investment continued to rise. According to data from the National Bureau of Statistics, in the first three quarters, my country's textile, chemical fiber, and clothing industries increased by 13.5%, 29.5%, and 3.1% year-on-year in fixed asset investment, and the growth rate rose by 24.8, 51.8, and 35.8 percentage points from the same period last year. Among them, the two-year average growth rate of investment in the textile and chemical fiber industries is 0.3%, and the investment scale has basically returned to the level before the epidemic.

4. It is expected to maintain stable operation throughout the year. The development situation is still complicated

       In the first three quarters of 2021, my country's textile industry has entered a new stage of high-quality development in the "14th Five-Year Plan" while repairing losses from the epidemic. It has demonstrated good development resilience and risk resistance in a complex and changeable environment. Entering the fourth quarter, the textile industry’s production and operation pressures have increased due to factors such as sharp rises in raw material prices, power and production restrictions in some regions, and high international freight prices. The peak consumption seasons such as New Year's Day and New Year's Day are coming one after another, and the industry is still expected to achieve steady development throughout the year.

       Looking forward to 2022, the textile industry has the conditions and foundation for stable and positive economic operation, but the development situation is still complicated. From the external environment, with the popularization of vaccination, the world economy is expected to enter a continuous recovery track; although my country’s epidemic has a regional rebound, the macroeconomic development foundation continues to be consolidated, which will support the steady growth of the domestic demand market, and the holding of the Winter Olympics will Further stimulate consumption vitality. However, the global epidemic is still evolving, the international supply chain is still not functioning smoothly, the momentum of improvement in employment and consumption in developed countries has weakened, and the recovery of international market demand is under pressure; commodity prices are operating at high levels, inflation expectations are increasing, and there is uncertainty and uncertainty. Factors increase. From the perspective of its own development, my country’s textile industry system still has the advantages of stable, efficient, and high-quality manufacturing, but we still need to work hard to resolve issues such as high fluctuations in raw material prices, structural shortages of labor, and difficulty in cost transmission to the terminal, and continue to consolidate the foundation for stable development. . With the gradual disappearance of the low base effect, the textile industry will return to a normalized recovery track with low economic growth and continuous deepening of transformation and upgrading in 2022.

       Faced with the complex and changeable situation, the textile industry will continue to actively implement the decisions and deployments of the Party Central Committee and the State Council, further deepen supply-side structural reforms, vigorously promote high-quality development, and continue to give full play to the textile industry’s role in ensuring stable supply and stimulating domestic demand. Improve the positive role of employment and income, strive to consolidate the foundation for stable economic operation, and make due contributions to the good start of the "14th Five-Year Plan" of my country's national economic and social development.

       Source of information: Industrial Economic Research Institute of China National Textile and Apparel Council