A large number of small and medium-sized enterprises have closed down, and large enterprises have also slowed down the pace of technological pformation due to tight funds and declining profits.

In all respects, the process is still not over, so the demand for textile machinery is unlikely to reverse in the near future.

We believe that the positive impact of the policy on the textile machinery industry is very limited.

First of all, when the external demand is still weak, it is difficult for textile enterprises to convert the tax rebate into profits completely, and it is very likely that they will be forced to cut some profits in exchange for the market.

Secondly, even if the tax rebate can increase the profits of textile enterprises, there will still be a lag in the formation of the purchasing power of the equipment.

Moreover, in the case of no obvious improvement in demand, a small increase in profit margins is difficult for textile companies to substantially increase investment.

But extending to the impact of textile machinery, we think there is still greater uncertainty.

It is mainly reflected in the following aspects: first, the time of policy implementation and final implementation is uncertain; two, whether banks can strictly enforce policies and lend loans to SMEs are uncertain; three, even if SMEs get loans, the positive impact on textile machinery has a certain lag.

Therefore, the textile machinery industry in the near future is not clear about the situation.