Status quo of China’s textile machinery industry, Jan. - Sept., 2018

Mar 06, 2019  |  by Flora



According to the statistic report from China Textile Machinery Association, in the first three quarters of 2018, under the support of the overall smooth operation of the macro economy and the textile industry, the industrial upgrading of the textile machinery industry was further advanced. The overall operation quality was good and maintained a growth trend. The main business income and export market maintained a double-digit growth, while the growth rate of the industry has slowed down.

E
conomic benefits  
Industry scale
In the first three quarters of 2018, the textile machinery industry achieved a main business income of 77.634 billion yuan, an increase of 12.11% year-on-year. The growth rate decreased by 0.82 percentage point compared with the same period of the previous year, which was 3.91 percentage points slower than the first half of 2018. The total assets were 101.913 billion with a year-on-year increased by 8.39%, down by 0.80 percentage point from the same period of the previous year.
 
Cost structure
In the first three quarters of 2018, the total cost of the textile machinery industry was 72.607 billion yuan, a year-on-year increase of 12.20%. Specifically, the main business cost increased 12.53% to 65.056 billion yuan, accounting for 89.60% of the total. The operating expenses grew 13.87% to 2.411 billion yuan, accounting for 3.32% of the total. The administrative expenses increased 11.35% to 4.531 billion yuan, accounting for 6.24% of the total. The financial expenses decreased 14.11% to 609 million yuan, accounting for 0.84% of the total.
 
Benefits
In the first three quarters of 2018, the total profit of the textile machinery industry was 5.335 billion yuan, a year-on-year increase of 9.44%. The growth rate slowed down by 10.12 percentage points compared with the first half of the year; the loss of loss-making enterprises was 263.8 million yuan, down by 17.70% year-on-year; the percentage of the posses reached 15.11%. The profit margin of the main business of the textile machinery industry was 8.20%, an increase of 1.05 percentage points over the same period of the previous year. With the development of new products in the textile machinery industry, the continuous improvement of product quality and the effective implementation of control costs, the quality and efficiency of the industry has improved year by year. However, since the third quarter, due to the slowdown in market demand, the growth rate of industry profits has slowed down.
 
Operation of key enterprises 
In the first three quarters of 2018, the survey data from China Textile Machinery Association to the key enterprise showed that the main business income was 36.415 billion yuan, a year-on-year increase of 10.98, accounting for 46.91% of the textile machinery industry; the total profit was 4.523 billion yuan. Among them, the loss of loss-making enterprises was 41 million yuan, a year-on-year increase of 63.10%; the scale of losses was 21.74%, which was 0.71% narrower than the first quarter. The total period expenses of key enterprises was 6.184 billion yuan, a decrease of 1.53% year on year; of which the operating expenses were 1.263 billion yuan, an increase of 1.43% year on year, accounting for 20.42% of the total period expenses; the administrative expenses were 4.018 billion yuan, a decrease of 1.822%, accounting for 64.98% of the total period expenses; the financial expenses were 923 million yuan, a year-on-year decrease of 4.18%, accounting for 14.60% of the total period expenses.
 
Questionnaire survey of the operation of key enterprises 
In order to have a better understanding of the performance of the textile machinery industry in the first three quarters of 2018 and the development trend in 2019, China Textile Machinery Association conducted a questionnaire survey on 372 mainframe and equipment manufacturers, covering spinning machinery, weaving and weaving preparation machinery, knitting machinery, dyeing and printing machinery, chemical fiber and non-woven machinery. According to the nature of the enterprise, private enterprises accounted for 80.71%, state-owned enterprises for 4.62%, collective enterprises for 2.45%, Hong Kong, Macao and Taiwan enterprises for 6.52%, overseas-funded enterprises for 3.53%, others for 2.17%; According to the scale of the enterprise, large enterprises accounted for 9.2%, medium-sized enterprises for 51.12%, small enterprises for 31.80%, and micro-enterprises for 7.26%.
 
  • Orders of enterprises in the first three quarters of 2018
In the first three quarters of 2018, more than half of enterprises enjoyed increased orders in different degrees, among which, 37.40% enterprises saw an increase of over 10%, 25.75% witnessed a growth within 10%, and 37.87% were the same as the previous year. Enterprises with reduced orders accounted for 10.84%.
 
In terms of overseas orders, 26.33% of enterprises increased by more than 10%, 24.26% grew by within 10%, 37.87% were flat compared with the same period of the previous year, and enterprises that reduced by less than 10% and reduced by more than 10% accounted for 7.99% and 3.55% respectively.
 
  • Forecast of orders for the fourth quarter of 2018
For the expectation of order demand in the fourth quarter of 2018, 52.49% of the enterprises are expected to grow, which is lower than the 63.15% increase in orders in the first three quarters. It can be seen that the companies ares more cautious in the fourth quarter. 32.84% companies are expected to be flat with the previous three quarters, while 14.37% are to see decreased orders in the fourth quarter. n terms of overseas orders, 43.79% of the companies are expected to grow in the fourth quarter, 45.34% are expected to be flat with the first three quarters, and 10.87% are expected to see order decrease.
 
  • Average ex-factory prices of major products
In the first three quarters of 2018, 17.86% companies witnessed main product sales prices increase by more than 5% year-on-year, 22.25% increased within 5%, and 41.48% was flat compared to the same period of the previous year. 18.41% presented declined prices. 
  • Product inventory
In the first three quarters of 2018, the companies were faced with relatively high product inventory pressures, for 80.94% saw increased or the same inventory compared to the previous year. 10.50% enterprises increased by more than 10%, 15.75% within 10%, 54.70% were the same as that of the same period of the previous year. Enterprises that saw reduced inventory by less than 10% and more than 10% accounted for 14.92% and 4.14% respectively.
 
  • Enterprise equipment utilization
In the first three quarters of 2018, among the surveyed enterprises, 60.11% presented equipment utilization rate above 80%, while that between 50% and 80% accounted for 33.62%, and that less than 50% accounted for 5.98%. Overall, the equipment utilization rate of large and medium-sized enterprises is better than that of small and micro enterprises.
  • Major problems encountered in the production and operation of enterprises
Among the enterprises surveyed, the primary problem lies in the volatility of raw material prices, disorder and poor price competition. In addition, the lack of employment due to difficulties in recruitment, insufficient domestic market demand, and rising inflation-driven costs are also common problems.
 
  • Anticipation of business operations and industry judgments
58.70% of the companies surveyed believe that the operating income will increase in 2018, but only 45.13% of enterprises have the same attitude towards the operating income in 2019; 29.97% believe that 2018 operating income will be the same as the previous year, for 2019 this figure is expected to grow to 37.76%, and 11.50% of companies believe that the operating income in 2018 is lower than the previous year. Among the companies surveyed, 43.07% of the companies expressed optimism about the industry in 2018. The company’s judgment on the situation of 2019 is much more cautious in terms of business revenue and industry.
 
Imports and exports  
According to Customs statistics, the total import and export of China’s textile machinery in the first three quarters of 2018 was 5,531 million US dollars, a year-on-year increase of 12.70%. Among them: textile machinery exports were 2.78 billion US dollars, an increase of 16.96%; imports were 2.751 billion US dollars, an increase of 8.70%. The export growth rate is greater than the import growth rate. Since February, the textile machinery industry has turned into a surplus. Table 1 reflects the import and export of China’s textile machinery.
 
Table 1  Total Imports and Exports of China’s Textile Machinery, Jan. - Sept., 2018
(Unit: USD)
                      
 
Total Value
Y/Y Value            (%)
Total Imports and Exports
5,531,379,835
12.70
Of them: Imports
2,751,050,575
8.70
                Exports
2,780,329,260
16.96

 

Imports

In the first three quarters of 2018, textile machinery was imported from 64 countries and regions, with a total import value of 2.751 billion US dollars, an increase of 8.70% year on year.
 
  • Imports of textile machinery
From the category of imported products, the import of auxiliary equipment and spare parts ranked first, with a total import value of 695 million US dollars, an increase of 14.81%, accounting for 25.27%; Among the seven major categories of products, five saw increases while two presented decreases; The growth rate of auxiliary equipment and spare parts, chemical fiber machinery and nonwovens machinery is higher than the industry average, as shown in Table 2.
 
Table 2  Imports of Textile Machinery Products, Jan. - Sept., 2018
(Unit: USD, %)
 
Products
Total Amount
Proportion
Y/Y Value
Total
2,751,050,575
100.00
8.70
Auxiliary equipment and spare parts
695,087,748
25.27
14.81
Chemical fiber machinery
545,560,324
19.83
127.16
Spinning machinery
510,210,970
18.55
-6.85
Weaving machinery
351,053,735
12.76
6.07
Dyeing and finishing machinery
322,907,193
11.74
-3.70
Knitting machinery
251,864,157
9.16
-37.96
Nonwovens machinery
74,366,448
2.70
14.04


 
Table 3  Countries and Regions of Various Textile Machinery Imports
  (Unit: USD)
Chemical fiber machinery
Country
Japan
Germany
Austria
Italy
South Korea
Value
294,982,513
214,349,948
11,828,006
5,263,074
3,752,351
Spinning machinery
Country
Germany
Japan
Italy
Czech Republic
France
Value
222,170,758
96,713,064
94,296,432
27,846,303
27,343,022
Weaving machinery
Country
Japan
Belgium
 Germany
Switzerland
Italy
Value
157,442,544
96,212,850
35,337,717
28,704,080
28,041,468
Knitting machinery
Country
Japan
Germany
Italy
China Taiwan
Switzerland
Value
105,383,795
84,860,567
41,688,578
8,744,421
4,634,407
Auxiliary equipment and spare parts
Country
Germany
Japan
Italy
 Switzerland
France
Value
256,209,241
96,798,461
55,492,982
48,487,309
43,736,603
Nonwovens machinery
Country
Germany
France
Portugal
Japan
China Taiwan
Value
41,882,486
11,251,122
9,247,768
5,093,414
3,992,548
Dyeing and finishing machinery
Country
China Taiwan
Italy
Germany
South Korea
Japan
Value
84,091,578
66,733,110
53,273,209
34,861,662
32,057,587
 
  • Main countries and regions of textile machinery imports
In the first three quarters of 2018, the major importing countries and regions were mainly Germany, Japan, Italy, China Taiwan, and Belgium. The top five import trade volume was 2.22 billion US dollars, an increase of 8.70% year on year, accounting for 80.71% of the total. (Table 4)
 
Table 4  Import Overview of Major Countries and Regions, Jan. - Sept., 2018     
                      (Unit: USD)

Country or Region
Total Amount
Proportion
(%)
Y/Y Value
(%)
Total
2,751,050,575
100.00
8.70
Germany
908,083,926
33.01
27.06
Japan
788,471,378
28.66
3.72
Italy
294,847,227
10.72
-2.32
China Taiwan
118,845,888
4.32
-3.20
Belgium
110,213,927
4.01
-20.71
Other countries and regions
530,588,229
19.29
7.78
 
  • Overview of import regions in China
In the first three quarters of 2018, 29 provinces, municipalities and autonomous regions across the country saw different quantities of imports. Jiangsu, Zhejiang, Guangdong, Shanghai and Xinjiang Uygur Autonomous region ranked among the top five in terms of total imports, accounting for 82.61% of the total. The total import value of Jiangsu Province ranked first in the amount of 877 million US dollars, an increase of 20.67%, accounting for 31.87%. With the development of Xinjiang’s textile industry, its total imports in the first three quarters of 2018 jumped to the fifth place. Table 5 reflects the top five provinces and cities in textile machinery imports.
 
Table 5  Overview of Top Five Regions in Imports, Jan. - Sept., 2018
   (UnitUSD)
Province or City
Total Amount
Proportion
(%)
Y/Y Value
(%)
Total
2,751,050,575
100.00
8.70
Jiangsu
876,644,754
31.87
20.67
Zhejiang
668,339,879
24.29
50.93
Guangdong
302,454,129
10.99
-31.28
Shanghai
230,114,312
8.36
21.17
Xinjiang
195,056,456
7.09
46.21
Others
478,441,045
17.39
-20.00
 

Exports

In the aspect of overseas market, with the growth of demand in foreign markets such as Southeast Asia, South Asia and Africa as well as the steady enhancement of the international competitiveness of domestic products, the textile machinery industry maintained a double-digit growth rate in 2018. In the first three quarters of 2018, textile machinery exports were 2.78 billion US dollars, an increase of 16.96% year on year. From the Customs data, the growth rate of export value has slowed down month by month in recent months. In addition to the impact of demand in the international market, the higher base in the same period of the previous year is also one of the reasons for the impact.
 
  • Exports of textile machinery
From January to September 2018, Customs statistics on textile machinery exports are classified as shown in Table 6. The export value of knitting machinery was 728 million US dollars, a decrease of 4.54% year on year, accounting for 26.18%, ranking first, followed by dyeing and finishing machinery, auxiliary equipment and spare parts, spinning machinery, weaving machinery, chemical fiber machinery and nonwovens machinery. The seven major categories of products, except knitting machinery, have achieved double-digit growth. (Table 7)
 
Table 6  Exports of Textile Machinery Products, Jan. - Sept., 2018
 (UnitUSD)

Products
Total Amount
Proportion
(%)
Y/Y Value
(%)
Total
2,780,329,260
100.00
16.96
Knitting machinery
 
727,836,654
26.18
-4.54
Dyeing and finishing machinery
 
519,272,155
18.68
18.32
Auxiliary equipment and spare parts
504,969,411
18.16
17.15
Spinning machinery
 
399,096,661
14.35
39.22
Weaving machinery
314,659,901
11.32
24.41
Chemical fiber machinery
 
188,088,506
6.76
70.78
Nonwovens machinery
126,405,972
4.55
33.07

 
Table 7  Countries and Regions of Various Textile Machinery Exports
                                                                  (Unit: USD)

Chemical fiber machinery
Country
Japan
India
Vietnam
Turkey
Indonesia
Value
55,184,094
18,084,699
17,508,163
16,690,093
13,665,299
Spinning machinery
Country
Vietnam
Bangladesh
India
Malaysia
Netherlands
Value
127,361,615
43,786,989
38,855,623
29,836,997
24,039,401
Weaving machinery
Country
India
Bangladesh
Indonesia
Vietnam
Uzbekistan
Value
133,481,784
40,984,367
29,823,827
24,906,727
18,574,019
Knitting machinery
Country
India
Bangladesh
Vietnam
Pakistan
Turkey
Value
145,185,018
106,776,150
92,652,184
60,512,574
42,101,273
Auxiliary equipment and spare parts
Country
India
Japan
Germany
Vietnam
Belgium
Value
98,123,810
54,822,681
50,020,255
43,701,570
24,817,456
Nonwovens machinery
Country
India
Vietnam
Turkey
South Korea
Egypt
Value
20,511,702
11,218,328
11,196,239
9,608,722
7,671,073
Dyeing and finishing machinery
Country
Vietnam
Bangladesh
India
Unite States
Indonesia
Value
84,461,815
54,402,528
40,245,793
33,160,570
29,532,231

 
  • Main trading partners in exports
In the first nine months of 2018, China’s textile machinery were exported to 180 countries and regions, while the top five export countries and regions are shown in Table 8.
 
Table 8  Export Overview of Major Countries and Regions, Jan. - Sept., 2018 
(UnitUSD)

Country or Region
Total Amount
Proportion
(%)
Y/Y Value
(%)
Total amount
2,780,329,260
100.00
16.96
India
494,488,429
17.79
-3.62
Vietnam
401,810,402
14.45
52.94
Bangladesh
268,779,257
9.67
15.17
Indonesia
146,135,396
5.26
29.61
Turkey
136,521,373
4.91
93.02
Other countries and regions
1,332,594,403
47.93
12.51

 
In the first three quarters of 2018, exports to the above countries and regions accounted for 52.07% of the total exports.

 


Table 9  Overview of Exports to the Areas along the Belt and Road

 

                                         (UnitUSD)

 

Total number

Total Value

Y/Y Value            (%)

Areas along the Belt and Road

64

2,017,419,816

18.35

Proportion

34.44

72.56

1.19

East Asia

1

2,241,557

103.98

ASEAN

10

718,532,896

41.73

West Asia

18

230,247,021

25.59

South Asia

8

901,507,116

2.35

Central Asia

5

96,713,821

40.24

Commonwealth of Independent States

7

43,897,307

13.55

Central and Eastern Europe

5

24,280,098

-1.79




 
 
  • Main trading partners in exports
In the first three quarters of 2018, a total of 29 provinces and autonomous regions presented exports of textile machinery, accounting for 82.37% of the total exports. The details are shown in Table 10 and Table 11.
 
Table 10  Overview of Top Five Regions in Exports, Jan. - Sept., 2018
(Unit: USD)
 
Province or City
Total Amount
Proportion
(%)
Y/Y Value
(%)
Total
2780329260
100.00
16.96
Jiangsu
765754825
27.54
28.60
Zhejiang
676646157
24.34
8.69
Shanghai
328962476
11.83
15.34
Guangdong
320460136
11.53
15.70
Shandong
198361550
7.13
35.41
Others
490144116
17.63
8.82

 
Table 11  Export Details of Main Provinces or Cities, Jan. - Sept., 2018
(Unit: USD)
         
Zhejiang
Categories
Knitting machinery
 
Auxiliary equipment and spare parts
Dyeing and finishing machinery
Weaving machinery
 
Spinning machinery
Nonwovens machinery
Chemical fiber machinery
 
Value
318,589,839
89,461,290
84,251,568
77,594,453
49,992,160
47,756,095
9,000,752
Jiangsu
Categories
Auxiliary equipment and spare parts
Spinning machinery
Knitting machinery
 
Dyeing and finishing machinery
Chemical fiber machinery
 
Weaving machinery
 
Nonwovens machinery
Value
197,710,038
180,255,471
104,152,935
101,358,317
75,290,965
59,865,273
47,121,826
Shanghai
Categories
Auxiliary equipment and spare parts
Dyeing and finishing machinery
Knitting machinery
Chemical fiber machinery
Spinning machinery
Weaving machinery
 
Nonwovens machinery
Value
80,662,897
80,055,421
63,986,885
61,751,213
30,333,322
8,791,766
3,380,972
Guangdong
Categories
Dyeing and finishing machinery
Knitting machinery
Weaving machinery
 
Auxiliary equipment and spare parts
Spinning machinery
Nonwovens machinery
Chemical fiber machinery
Value
189,070,028
75,145,707
19,715,171
16,012,488
10,676,324
5,688,558
4,151,860
Shandong
Categories
Weaving machinery
 
Auxiliary equipment and spare parts
Spinning machinery
Dyeing and finishing machinery
Nonwovens machinery
Knitting machinery
Chemical fiber machinery
Value
98,990,576
36,646,354
34,998,172
12,212,359
6,031,361
5,552,210
3,930,518
Others
Categories
Knitting machinery
Spinning machinery
Auxiliary equipment and spare parts
Dyeing and finishing machinery
Weaving machinery
 
Chemical fiber machinery
Nonwovens machinery
Value
160,409,078
92,841,212
87,288,496
52,324,462
49,702,662
33,963,198
13,615,008
 

Prospects for the industry situation
The development of the textile industry directly affects the market conditions of the textile machinery industry. Since the beginning of 2018, with the differentiation of textile industry demand, the market sales of textile machinery in various sub-sectors were also different. The sales of most of the spinning machinery slowed down, and the weaving machinery maintained a high growth trend in the first half of the year. Since the third quarter, the market has slowed down. The main products of knitting machinery have slowed down in the third quarter, and the dyeing and finishing machinery has maintained a higher degree of prosperity. The sales of chemical fiber machinery has increased significantly in the first three quarters, but new orders will slow down in the fourth quarter. Non-woven machinery has experienced a downward trend in 2018 after experiencing high growth in previous years. From the performance data, the textile machinery industry achieved a steady growth in the first three quarters of 2018, but the growth rate of the operation has slowed down. It is expected that the textile machinery industry will maintain a certain level of growth in 2018.
 
Looking forward to 2019, influenced by U.S. trade protectionism, although the world’s major economic organizations have lowered their economic growth rates, the world economy will still be on a recovery track, the international market demand will be basically stable, and the general trend of China’s national economic development will not change. Generally speaking, the domestic and international market environment faced by China’s textile industry in 2019 is still basically stable, but external demand faces more uncertainties and various risk factors have increased. Affected by this, the domestic market pressure of the textile machinery industry is bound to increase, and the foreign market is still expected to maintain relatively stable development. Textile machinery enterprises must actively accelerate structural adjustment and technological innovation, and operate steadily to cope with market fluctuations, working together to promote China’s textile machinery industry to achieve high quality development.
 
 

2019.12   

   086-10-85229751

chinatextile2015@163.com

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