Production and operation of China’s cotton textile enterprises has been improving steadily, as per estimates of China Cotton Textile Association (CCTA). Performance of the tracked key enterprises was better than that of the industry clusters as main economic indicators slowed down during the January-August period.
Operating income increases by 24.3%
During the eight-months period from January to August, CCTA as per estimates, total operating income of cotton textile enterprises increased 24.3 per cent year-on-year, 1.4 percentage points higher than that of the January-July period. Operating costs during the period grew 21.4 per cent year-on-year or 0.7 percentage points higher than the first seven months of 2021. Thereafter, total operating costs declined 0.5 percentage points from January to July to account for 88.7 per cent of the total operating income.
The cumulative operative income of cluster enterprises increased 6.2 per cent year-on-year from January to August. However, the cumulative operating income remained 2.6 percentage points lower than that from January to July. The cumulative operating cost surged by 10.4 per cent year-on-year. It surged by 1.2 percentage points than that from January to July. The operating costs surged higher than the operating income, adding greater production and operation pressure on cluster enterprises.
Export value surges
The export value of cotton textile enterprises grew 10.1 per cent year-on-year, as per data. However, exports had declined by 0.7 percentage points from January to July. Export value jumped 0.7 percentage points to account for 12.9 per cent of the industrial sales value. From January to August, the cumulative export delivery value of cluster enterprises grew by 13.6 per cent year-on-year. It grew by 1.8 percentage points than the performance of these enterprises from January to July. The export of cluster enterprises improved as the foreign trade orders surged.
Total profits surge by 71.5%
The industrial value of cotton textile enterprises rose 16.9 per cent year-on-year from January to August in 2021. Industrial added value of cotton textile enterprises rose by 7.4 percentage points higher than January to July period. The total profit of cotton textile enterprises surged 71.5 per cent from January to August. However, their growth rate declined by 15.2 percentage points from that of January to July. Profit rate increased 1.3 per cent year-on-year while growth rate declined by 0.3 percentage points than that from January to July.
Overall, the operations of tracked enterprise remained relatively stable in August. Orders for Christmas were placed earlier than previous year to cover delivery delays caused by the COVID-19 pandemic. Though the performance of the overall sector was satisfactory, corporate profits fell due to an increase in raw materials and shipping costs.
Compiled by the China Cotton Textile Association, the data includes insights from over 260 cotton textile enterprises and about 15 industrial clusters across the country.
