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According to data recently released by the National Bureau of Statistics, in the first half of this year, the main business income of enterprises in China's knitting industry fell by 6.19% year-on-year, which narrowed by 4.11 percentage points compared with the first quarter. The changes in the operating costs of enterprises in the knitting industry are basically synchronized with the operating income, down 6.21% from the same period last year. In addition, the profit margin and loss of enterprises in the knitting industry have improved.
The relevant person in charge of the China Knitting Industry Association said that in the first half of the year, although the knitting industry in China was under overall pressure, it benefited from the release of the vitality of the domestic market, and the production and sales situation continued to improve, and the industrial development entered the recovery stage.
The decline in production and sales continued to narrow
According to the National Bureau of Statistics data, from January to June this year, the output of China's garment enterprises fell by 7.84% year-on-year, a decline of 1.86 percentage points narrower than the first quarter; Among them, the output of knitted clothing decreased by 6.65% year-on-year, the growth rate increased by 2.88 percentage points compared with the first quarter; Knitwear output accounted for 64.4% of total clothing production, an increase of 2.27 percentage points over 2022.
From the revenue point of view, the performance of the knitting industry in the second quarter was significantly better than the first quarter, but it is still in the stage of recovery growth. Among them, the business income of knitted fabric enterprises fell by 2.52% year-on-year, and the business income of knitted clothing enterprises fell by 8.28% year-on-year, which slowed down by 5.43 percentage points and 3.39 percentage points compared with the first quarter of this year.
In this regard, the relevant person in charge of the China Knitting Industry Association said that in recent years, the proportion of China's knitted clothing production in the total output of clothing has shown a significant upward trend, which reflects the demand for knitted clothing in the consumer market has continued to grow.
"At present, based on the particularity of sports needs, the demand for clothing tends to be more functional and practical. Fabrics and processes such as high-elastic knitting, quick-drying, seamless and antibacterial are better suited for leisure outside the city." Chen Xianxi, chairman of Zhejiang Xge Industrial Co., LTD., said that with the recovery of the consumer market, outdoor travel, vacation and daily leisure sports are more and more consumers into the travel plan, which also brings development opportunities for the consumption of knitted sportswear, and drives the production and sales of knitted clothing.
"In 2022, despite the challenges from the market and supply chain, the pace of sustainable development of the knitting industry will not stop." Zhang Jialun, general manager of Jiaxing Diao Shuai Clothing Co., LTD., said, "Only by continuously increasing product research and development efforts, deeply understanding customer needs, developing personalized product solutions according to different customer needs, constantly improving the quality of raw materials, and making efforts to higher end products, can we better control unnecessary expenses and costs, and improve product cost performance in a variety of ways." This will improve the market competitiveness of our products."
"At present, the group adopts OEM (OEM processing), cash delivery, one piece of consignment and other diversified supply methods, providing more flexible services for brand parties, agents, e-commerce platforms, live streaming platforms and other target buyers." As a result, we are able to attract more customers from different channels and different sizes, further expanding our sales channels." Qingdao instant development Group Co., Ltd. sugar shell brand head Jiao Binfeng said.
Second-quarter earnings improved
Since the beginning of this year, the profit of China's knitting industry has continued to shrink year-on-year, but as enterprises actively respond to external changes and adjust their development ideas, the situation has improved since June. Statistics show that from January to June, the total profit of enterprises in the knitting industry fell by 8.49% year-on-year, which narrowed by nearly 10 percentage points compared with the first quarter of this year. Among them, the profit performance of knitted fabrics was better than that of knitted clothing, and the total profit fell by 6.84% and 9.15%, respectively, which narrowed by 11.42 percentage points and 9.53 percentage points compared with the first quarter.
In addition, the profit margin and loss situation of enterprises in the knitting industry have improved, but the quality of operation still needs to be improved. From January to June, the profit margin of enterprises in China's knitting industry was 3.93%, basically unchanged from the same period last year, slightly down 0.1 percentage points from the same period last year, and 1.56 percentage points higher than the first quarter; The loss was 28.62%, 4.84 percentage points lower than the first quarter. In the same period, the profit margin of knitted fabrics and knitted clothing was 3.06% and 4.46%, respectively, which increased by 0.09 and 2.45 percentage points compared with the first quarter. The loss of knitted fabrics and knitted clothing was 26.26% and 29.89%, which decreased by 6.85 and 3.76 percentage points compared with the first quarter, respectively.
It is worth noting that in the first half of the year, the market performance of leading enterprises in China's knitting industry was commendable, which effectively led to the overall stabilization of the industry.
Knitting industry leading listed company New Australia shares recently released the first half of the performance report shows that during the reporting period, the company achieved a total revenue of 2.321 billion yuan, an increase of 9.51%; Net profit attributable to the parent company was 255 million yuan, an increase of 5.08%; Net profit withheld from non-profits was 246 million yuan, up 20.78% year-on-year.
The relevant person in charge of Xinao shares said that in recent years, the company has adjusted its development strategy, diversified and expanded its category based on the main spinning industry, and opened up the market space for cashmere yarn through the establishment of Ningxia Xinao Cashmere and the acquisition of overseas companies. It has built a multi-variety, multi-grade and serialized yarn product structure system covering mid-end, high-end, luxury end, knitted clothing, sports and leisure, home textile and other categories. In recent years, the company's sales of sports outdoor yarn have continued to increase, and it has become a supplier of nearly 100 sports outdoor brands in the world.
The latest financial data show that in the first half of the year, the company achieved operating income of 1.748 billion yuan, an increase of 2.78%; Net profit attributable to the parent was 192 million yuan, an increase of 27.37%; Net profit deducted from non-return to mother was 175 million yuan, an increase of 44.62%.
Export market pressures remain
In March this year, the previous backlog of orders in China's knitting industry achieved an overall recovery under the centralized release, but since the second quarter, under the influence of the international market demand decline and other reasons, the foreign trade situation of China's knitting industry is still relatively severe.
According to China Customs statistics, from January to July, the country's textile and apparel exports were 169.79 billion US dollars, down 10% year-on-year. Among them, textile exports were 78.85 billion US dollars, down 11.9%; Apparel exports were $90.94 billion, down 8.3% year on year.
From January to June, the export value of China's knitting industry was 48.771 billion US dollars, down 10.25% year-on-year, and the decline increased by 4.46 percentage points from the first quarter. Among them, the export value of knitted fabrics was 10.772 billion US dollars, down 14.4%; Exports of knitwear and accessories amounted to $37.999 billion, down 8.4% year on year. In June, the export value of China's knitting industry was 9.777 billion US dollars, down 15.75% year-on-year.
According to the relevant person in charge of the China Knitting Industry Association, from the main export market, from January to June, the export volume of China's knitting products to several major export destination countries still maintained a contraction trend, and the decline has an expanding trend than the first quarter. China's exports of knitting products to ASEAN, the United States, the European Union and Japan were 9.036 billion US dollars, 8.465 billion US dollars, 6.675 billion US dollars and 2.983 billion US dollars, respectively, down 11.91%, 22.14%, 19.09% and 11.54%.
China's exports to Central Asia, the Middle East, Russia and other regions and countries have increased significantly. From January to June, China's knitted products exports to the five Central Asian countries totaled 2.406 billion US dollars, an increase of 61.15%; Exports to Russia amounted to USD 1.088 billion, up 45.34% year on year; Exports to Saudi Arabia, Turkey, Nigeria, Brazil and other countries also increased significantly.
From the perspective of sub-categories, in the first half of the year, the export value of most products declined year-on-year. Among them, the drop of pile fabric, sportswear, knitted children's wear is more obvious, down 13.22%, 14.93% and 24.55% respectively. Exports of knitted socks basically maintained the same period last year.
From the local customs statistics, from January to June, Xinjiang and Guangxi knitted products exports were 2.148 billion US dollars and 1.223 billion US dollars, respectively, an increase of 99.45% and 172.55%. The orderly transfer of industries from the eastern coastal areas to the central and western regions, and the regional structure has become more optimized.
Since the beginning of this year, Xinjiang has benefited from a series of favorable policies in China, as well as the demand of Russia and Central Asia and other markets, and its export has maintained a high trend. Guangxi seized the favorable opportunity to launch enterprises to grab orders and expand the market in ASEAN and the Middle East, and achieved positive results.
"Since the beginning of this year, although the export orders of some knitting enterprises have been affected to varying degrees, thanks to the forward-looking layout of the international vision, the layout of overseas factories in advance, so that the company can well cope with and resolve the pressure and challenges of the complex external market situation on foreign trade exports." Xu Rong, vice chairman of Jiangsu Dongdu Textile Group Co., Ltd. said.
Xu Rong also said that the company used to be export-oriented, and this year hopes to strengthen the mining of the domestic market and reach cooperation with more domestic brands to open the domestic sales situation.
"Only by constantly improving its product quality and service, and making efforts in product research and development, quality control and service, can the company win more international high-end brand customers." Anhui Jingwei textile and apparel Co., LTD. General manager Wang Xiuhua said.
The relevant person in charge of the China Knitting Industry Association said that with the changes in the global market pattern, China's knitting enterprises need to accurately grasp the new changes in global supply chain cooperation, further pay attention to and explore the markets of the Regional Comprehensive Economic Partnership Agreement (RCEP), as well as regional markets such as Central Asia, the Middle East and Russia, and actively adapt to and flexibly respond to the international trade environment. Actively layout the future international market.
(Information source: China Textile News)
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