08 years ago, in May, enterprises above Designated Size realized revenues of 12266 billion yuan, with a total profit of 41 billion 800 million yuan, representing an increase of 16.6% and 6.6% compared with the same period last year. The total increase in revenue and profit has been the lowest since 03 years, and the income growth of each sub industry has declined little.

According to the statistical results of the textile industry association, the total export volume was 79 billion 390 million US dollars in 1-6 months, the growth rate was 9.7% (the growth rate was 4 percentage points lower than that in 1-5 months), of which clothing and textiles were exported 470 and 32 billion 440 million US dollars respectively, up 1.6% and 24.1% respectively, and the growth rate dropped by 4, 5.4 and 5.4 percentage points respectively compared with May.

The decline in export growth was mainly due to the decline in US exports, and exports to the EU were basically normal. In 1-6 months, 7.8% of the negative growth in clothing exports to the United States:

In the 07 years, the total investment in fixed assets of the textile industry reached 255 billion 560 million yuan, an increase of 24.9% over the same period last year, and a further decline in the 08 years. In the 1-6 months, the whole industry completed 126 billion 300 million yuan in fixed assets investment, up only 13.7% from the same period last year, the lowest since 2000.

From the sub sectors, the investment volume of textile industry, clothing and chemical fiber respectively reached 73 billion yuan, 40 billion 350 million yuan and 12 billion 970 million yuan, representing an increase of 6.3%, 24.7% and 29.2% respectively. The growth rate of textile and clothing industry decreased by 13 percentage points, 12.5 percentage points, and 2.4 percentage points of chemical fiber respectively compared with that of 07 years.

From the perspective of fixed assets investment, the downward trend of industry benefit growth is more obvious in the future.

In July, spandex prices further declined, dropping to 450 million yuan mark; viscose staple fiber rebounded, rising 1000 yuan, currently 16500 yuan. Because of the high speed release period of production capacity and weak demand growth, we believe that chemical fiber prices remain low in the second half of the year.

Cotton prices fell slightly, at present 13773 yuan, we maintain the cotton price in the future about 14000 yuan fluctuation judgement;

In the case of consumption promotion, domestic sales growth, industry efficiency growth decline and integration intensification, we are optimistic about brand clothing enterprises and leading enterprises in the business mode, focusing on 16.88,0.38,2.30%, 15.39,0.01,0.07%, -0.18, -0.94%, Yantai, spandex (36.51, -0.24, -0.65%).

Industry review and Outlook

Industry growth rate decline

08 years ago, in May, enterprises above Designated Size realized revenues of 12266 billion yuan, with a total profit of 41 billion 800 million yuan (chart 1), representing an increase of 16.6% and 6.6% respectively, and the increase in gross income and profit was the lowest since 03 years.

The clothing industry achieved total revenue and profit of 302 billion 400 million yuan and 12 billion 400 million yuan, up 19.5% and 12.4% respectively, representing a decrease of 4 and 17 percentage points compared with the same period last year. The total income and profits of the textile industry were 762 billion 700 million yuan and 25 billion 700 million yuan respectively, up 18.1% and 14.1% over the same period last year. The growth rate of the textile industry decreased by 3.1 and 3.1 percent respectively compared with the same period last year.

The income growth of each sub sector declined little, and the total profit decreased significantly (Chart 3-5).

The decline in export growth, rising costs, intensified competition and the snow disaster in February were the main reasons for the decline in industrial efficiency in the first May; and the main reasons for the decline in export efficiency, the rising labor and production costs, the accelerated rate of appreciation, and the obvious capacity of the industry to overlook the growth of industrial efficiency in the future.

These major reasons are unlikely to change in the foreseeable future, so our future industrial efficiency growth rate has not changed over the past 07 years.