In the first quarter of 2020, affected by the sudden outbreak of the COVID-19, listed textile and apparel companies suffered the pressures brought about by the global economic downturn, and their economic operations, production and sales were greatly affected. Relevant statistics show that in the eleven sub-sectors of the textile industry, except for individual industries such as chemical fiber, the main economic operation indicators in the first quarter have declined to varying degrees compared with the same period of the previous year, the overall level of profit and efficiency has declined, and the growth rate has slowed down from positive to negative.

 

In the first quarter of 2020, global stock markets fell across the board. The largest decline since the 2008 financial crisis. Data show that the market value of listed textile and apparel companies is relatively more affected by the pandemic. At the end of March, the total market value of 176 listed textile and apparel companies was 1,302.571 billion yuan, a decrease of 94.99 billion yuan from the beginning of the year, and the loss rate reached 6.80%. Higher than the average level of 5.93% market value loss of A shares in the first quarter.

 

2.1 According to statistics, as of March 31, 176 textile and apparel companies achieved a total operating income of 251.477 billion yuan and a total net profit of 11.317 billion yuan, down 5.75% and 36.98% respectively over the same period last year. Among them, 22 companies (accounting for 12.50%) achieved year-on-year growth in revenue, 42 companies (accounting for 23.86%) achieved a year-on-year increase in net profit, 58 companies suffered losses, and the percentage of loss-making companies reached 32.95%.

 

2.2 Statistics show that the net profit margin of listed textile and apparel companies in the first quarter was 4.49%, a decrease of 2.24 percentage points from the same period of the previous year, a decrease of nearly 30%; the inventory turnover rate was 1.05 (times), a decrease of 14.6% from the same period of the previous year; the turnover rate of total assets was 0.12 (times), a decrease of 25% compared with the same period last year.

 

2.3 At the end of the first quarter, the total liabilities of 176 listed textile and apparel companies were 1,146.547 billion yuan, an increase of 25.35% over the same period of the previous year; short-term loans amounted to 347.637 billion yuan, an increase of 35.95% over the same period last year.

 

From the quarterly report (January - March), the monthly economic operation data changes and special surveys show that listed textile and apparel companies have shown strong confidence and resilience in the face of the pandemic. Most companies said that the current production and operation impact is temporary and limited. Although the performance in the first quarter has declined, as production and operation gradually return to the right track in the second and third quarters, the impact on the whole year should be small and controllable.