Economic operation analysis of China’s Home Textile Industry from January to February in 2018

By Zhao Zihan

From January to February this year, the home textile industry as a whole continued to maintain a stable growth trend. Revenue, profit, import and export were all very optimistic.

Main business income increased by 8.76% year-on-year.

According to statistics from the National Bureau of Statistics, from January to February, the enterprises above designated size in home textile industry realized a total of 33.088 billion yuan in main business income,an increase of 8.76% year-on-year; the total profit was 1.619 billion yuan,an increase of 13.89% year-on-year; the profit rate was 4.89%, 0.22 percentage point higher than the same period of 2017; the gross margin for sales was 12.96%, an increase of 0.19 percentage point over the same period in 2017; the proportion of three fees (financial costs, operating expenses and management fees) was 7.82%, an increase of 3.13 percentage point over the same period in 2017.

The 205 key enterprises tracked by the association achieved the main business income of 12.847 billion yuan in January - February, an increase of 8.25% year-on-year; the profit was 869 million yuan, an increase of 32.37%year-on-year. The 15 industry clusters tracked by the association realized revenue of 46.512 billion yuan from January to February, a year-on-year increase of 12.84%, and a profit of 2.612 billion yuan, a year-onyear increase of 11.15%.

According to statistics from the National Bureau of Statistics, from January to February of this year, 971 bedding enterprises above designated size achieved a total of 16.555 billion yuan in main business income,an increase of 10.78% year-on-year; total profits were 839 million yuan, a year-on-year increase of 13.61%;and profit margin was 5.07%. 284 towel companies above designated size realized main business income of 7.275 billion yuan, a year-on-year decrease of 0.21%as well as a profit of 381 million yuan with a year-onyear decrease of 1.04%; the profit rate was 5.23%. 221 fabric companies above designated size achieved revenue of 3.203 billion yuan, a year-on-year increase of 11.48%; and profits were 123 million yuan, a year-onyear decrease of 8.65%; the profit rate was 3.84%.

Total import and export volume increased by 29.74% year-on-year.

From January to February, the total import and export trade of China’s home textile products was US$6.847 billion, an increase of 29.74% year-on-year.Among them, imports were 213 million U.S. dollars,an increase of 7.59% year-on-year; exports were 6.634 billion U.S. dollars, an increase of 30.61% year-onyear, and the export growth rate was 41.09 percentage points higher than that of the same period of last year,showing a rapid growth for the time being, which has provided a good foundation for this year’s overseas pattern of China’s home textile industry. However, the future development trend still needs to wait and see.

From January to February, the export volume of China’s home textile products showed growth in yearon-year volume, year-on-year value, and unit price,which were up 30.61%, 29.51%, and 0.84% respectively.

From the perspective of the major 7 categories of products exported, bedding and fabric products are still the main export products, accounting for 50%of the total. From January to February, they exported 1.992 billion U.S. dollars and 1.358 billion U.S. dollars, respectively, with double-digit growth by 28.99%and 34.37% respectively. The growth rate of other products was also obvious and balanced. Among them,the growth rate of towel products was 21.25%, carpet growth was 29.29%, blanket growth was 32.03%,food and kitchen textiles growth was 31.14%, and the accessories such as ropes and bands increased by 40.18%.

From January to February, the exports to the U.S.,Europe, and Japan reached 3.397 billion U.S. dollars,an increase of 25.24% year-on-year; exports to other markets were 3.236 billion U.S. dollars, an increase of 36.78% year-on-year. It can been seen that the exports to other markets witnessed a higher rate than that to the U.S., Europe, and Japan; however, the latter is still slightly larger in terms of export scale, accounting for 51.22%.

Exports to the United States market amounted to US$1.735 billion,an increase of 28.61% year-on-year, 23.54 percentage points higher over the same period of last year. Exports to the EU market reached US$1.15 billion, a year-on-year increase of 27.97%, 39.27 percentage points higher over the same period of last year; exports to the Japanese market amounted to US$514 million, a year-on-year increase of 10.23%, and the growth rate was 9.15 percentage points higher than the same period of last year.

In other markets, the ASEAN market is one of the important markets and the third largest export market for China’s home textile products. In January - February, exports to the market accounted for 9.95%, and the export value was 660 million U.S. dollars, an increase of 40.95% year-onyear, of which the volume increased by 40.21% year-on-year, 10.7 percentage points higher than the average level, and the main export goods,bedding and fabric products, increased by 51.64% and 48.03% respectively.