According to the relevant statistical data of the National Bureau of Statistics and the annual report of textile and apparel listed companies in 2018, as well as the comprehensive evaluation of the “Comprehensive evaluation system for the operational development performance of listed companies in the textile and apparel industry (Asys.16 Evaluation System)”, the earnings of listed companies in the textile and apparel industry increased steadily throughout 2018, and the operation was basically stable, and the overall development situation was good.

I. Basic situation of textile and apparel listed companies in Shanghai and Shenzhen stock exchanges in 2018.

1. According to incomplete statistics, by the end of 2018, there are about 166 listed companies mainly engaged in textile and apparel in Shanghai and Shenzhen Stock Exchanges. Among them, 81 are Main Board, 72 are SME Board and 13 are GEM Board. The proportions are 48.80%, 43.37% and 7.83% respectively.

2. By the end of 2018, the market value of 166 main textile and apparel listed companies in Shanghai and Shenzhen stock markets was about 1.07 trillion yuan (0.47 trillion yuan less than the previous year). The proportion of households and market value of textile and apparel listed companies in Shanghai and Shenzhen stock markets were 4.65% and 2.47% respectively (up - 0.11% and - 0.25% respectively compared with the end of 2017).

3. According to statistics, there were 105 IPOs on Shanghai and Shenzhen stock exchanges in 2018 (74.94% lower than the previous year). Among them, there are only 2 textile and apparel enterprises listed on the main board of Shanghai stock exchange (all on the main board of Shanghai stock exchange). In terms of number, the number of new listed companies is significantly lower than last year’s 19. Textile and apparel enterprises raised 1,932.6375 million yuan through IPO in this year. Table 1 below:

 Unit: 10,000 yuan

Data sources: CSRC

II. Overall operational development of textile and apparel listed companies in Shanghai and Shenzhen stock exchanges in 2018.

Overall, this year’s operation and development of textile and apparel listed companies mainly presents the following characteristics:

1. The advantages of technology, capital, brand, market and management are more obvious, which highlights the backbone role in the smooth operation of the economic development of textile industry. 

Relevant statistics show that in the industry-wide enterprises above designated size, although the number of textile and apparel listed companies in Shanghai and Shenzhen stock exchange accounts for only 0.45%, the proportion of assets is as high as 35%. Moreover, from the total annual revenue, in 2018, textile and apparel listed companies in Shanghai and Shenzhen stock markets accounted for about 20% of the industry’s enterprises above designated size, and their profits accounted for more than a quarter. Shanghai and Shenzhen textile and apparel listed companies play an important role in the process of industry development. They are the backbone of maintaining the smooth operation of textile economy and play an active role in leading the innovation and development of the whole industry.

2. Income continues to grow, while profit quality, efficiency and performance growth rate have declined.

In 2018, 166 textile and apparel listed companies in Shanghai and Shenzhen stock exchanges realized 1,042.642 billion yuan in revenue (hereinafter referred to as “revenue”), an increase of 31.41% over the previous year. Net profit was 54.321 billion yuan, up 0.13% from 2017 (54.251 billion yuan). Among them, 97 (58.4%) achieved net profit growth year-on-year, with the highest increase of about 3079.8%. Operating income, gross profit, net profit and year-on-year growth from 2017 to 2018 are shown in Table 2 below.

 Unit: yuan

Data sources: Annual report of listed companies

3. The scale of assets continues to expand, and the capital structure and solvency are basically reasonable.

Statistical data show that at the end of 2018, the total net assets of 166 textile and apparel listed companies in Shanghai and Shenzhen stock exchanges reached 714,368,367,200 yuan, an increase of 9.72% over the previous year, and the total assets scale was 1,541,754,985,700 yuan, an increase of 25.43% over the previous year. The overall debt ratio increased slightly. In 2018, the asset-liability ratio (average) of 166 textile and apparel listed companies in Shanghai and Shenzhen stock exchanges was 41.00%, which was 3.52 percentage points higher than that of the previous year (37.41%). However, the debt level is still at a low level.

4. Operation is basically stable, operating costs continue to rise, and cash flow is better than the previous year.

From the perspective of operating cost factors, the sales and financial expenses of enterprises in 2018 have been greatly increased, increasing by 23.12% and 32.42% respectively compared with the previous year.

In 2018, the net cash flow generated by 166 textile and apparel listed companies in Shanghai and Shenzhen stock exchanges was 0.41 yuan per share, an increase of 10.81% compared with the same period last year. Enterprises’ cash income-generating ability and cash flow quality indicators have increased to varying degrees, indicating that cash income-generating ability and cash flow quality have improved.

From the main operating indicators of textile and apparel listed companies, the inventory turnover rate in 2018 was 2.03% lower than the previous year, the turnover rate of accounts was 14.90% higher than the previous year. Current assets turnover rate and total assets turnover rate are roughly the same as last year.

5. Rapid increase in R&D investment to promote industrial optimization and upgrading

In 2018, the textile and apparel listed companies in Shanghai and Shenzhen stock exchanges actively implemented the national strategy, increased R&D investment, and actively nurtured and developed new textile and apparel industries while upgrading traditional textile and apparel industries. The total R&D investment in the whole year was about 16.89 billion yuan, an increase of 35.34% over the previous year. R&D investment intensity was 4.29, which was 34.48% higher than the previous year. Among them, there are 70 companies whose R&D investment intensity exceeds 3%, accounting for 42.17%.

6. Through additional issuance, capital raising, mergers and acquisitions, we will strive to optimize the allocation of resources of textile and apparel listed companies, and help accelerate transformation and upgrading to achieve high-quality development.

With the further deepening of market-oriented reform of capital market in recent years, the demand of textile and apparel listed companies for additional issuance, capital raising, merger and acquisition and reorganization has been released continuously. It plays an important role in accelerating the transformation and upgrading of listed companies, resisting risks and challenges, and achieving high-quality development. Statistical data show that in 2018, 21 textile and apparel listed companies in Shanghai and Shenzhen stock exchanges issued the first announcement of restructuring, and actually completed the restructuring of 2. In 2018, 15 textile and apparel listed companies in Shanghai and Shenzhen stock exchanges completed additional issuance and raising capital, accounting for 9.04%, which decreased by 4.82 percentage points compared with the previous year. The number of additional issuance was 6,421,400 shares, with an additional fund of 43.559 billion yuan (an increase of 40.35% over the previous year).