Since 2018, the global economic climate has continued to rise, international trade has further recovered, China's national economy has started to improve, and the domestic demand market has been relatively active. Overall, it has provided a relatively good external environment. China's textile industry insisted on deepening the structural reform of the supply side and focused on promoting high-quality development. The first quarter basically achieved a smooth start.

According to the spring survey of the China National Textile and Apparel Council, the start-up and order-taking of key enterprises and industrial clusters are normal, and most enterprises are cautiously optimistic about the development in 2018. According to the results of the “Corporate Operator Tracking Survey” of China Textile Association, the industry sentiment index for the first quarter was 57.3, which is in a stable development range. According to the National Bureau of Statistics and China Customs, the sales in the industry both inside and outside the industry were steadily improving in the first quarter, the production situation remained stable, and the operational quality was basically stable.

The internal and external markets are improving, and the relationship between supply and demand has improved.

In the first quarter of 2018, China's textile and apparel domestic demand market accelerated, and the growth rate of online channel sales increased significantly. According to the National Bureau of Statistics, the retail sales of clothing, shoes, hats and needles above designated size increased by 9.8% year-on-year, 3.6 percentage points higher than the same period of the previous year, and the growth rate increased to the same as the growth rate of total retail sales of consumer goods in the same period. In a rare case, the retail sales of online wearing goods increased by 33.9% year-on-year, a significant increase of 18.3 percentage points over the same period of the previous year.

The production situation remained stable and the supply structure was adjusted in depth.

In the first quarter of 2018, the capacity utilization rate of the textile industry maintained a good level. According to the statistics of the National Bureau of Statistics, the capacity utilization rate of the textile industry above designated size reached 80.7%, and the utilization rate of the chemical fiber industry reached 81.5%, which was higher than that of the national industry. 5 percentage points. The growth rate of industrial production slowed down moderately. The industrial added value of textile enterprises above designated size increased by 3.6% year-on-year, 1.5 percentage points slower than the same period of the previous year. The growth rate of the end chain of the industrial chain accelerated, and the value added of home textiles and industrial textiles increased. The growth rates were 6.2% and 8.1% respectively, up 5.4 and 5.5 percentage points respectively over the same period of last year, reflecting the good connection between production and sales; the slowdown in production growth at the front end of the industry chain indicates that the production capacity and supply structure are continuously optimized and adjusted, cotton textiles and The added value of the printing and dyeing industry and the chemical fiber industry increased by only 0.8% and 3% respectively. Positive progress has been made in the manufacture of new textile materials. The industrial added value of the bio-based materials manufacturing industry, which was newly included in the national statistical catalogue, increased by 41.7% year-on-year.

The operation quality is basically stable, and the profit pressure has increased.

In the first quarter of 2018, the above-scale enterprises in the textile industry realized a total income of 1.371.37 billion yuan, a year-on-year increase of 3.1%; the main business income of the textile machinery, industrial use and home textile industry increased by 16.8%, 7.1% and 7% respectively. The contribution of industry-wide revenue growth is outstanding. The turnover rate of finished products in the industry was 18.1 times/year, the total asset turnover rate was 1.35 times/year, and the ratio of three fees was 7.1%, which was roughly the same as the same period of the previous year. In the first quarter, the total profits of textile enterprises above designated size reached 61.27 billion yuan, down 3.8% year-on-year. Among them, the chemical fiber industry's profit was down 15.2% year-on-year due to the high base in the same period of last year, which had a significant impact on the profit decline of the whole industry. The industry's sales profit margin was 4.5%, a decrease of 0.3 percentage points from the same period of the previous year. According to the results of the “Corporate Operator Tracking Survey” of China Textile Association, 72.7% of the surveyed companies' profits increased or remained flat in the first quarter, indicating that most of the company's profitability is basically normal.

The macro economy is stable and the policy environment is gradually improved.

From the trend of domestic demand development, China's national economy will continue to develop steadily and steadily in 2018, and move towards a new stage of high-quality development, driven by the continuous improvement of supply-side structural reforms and steady growth of household income. Under the circumstance, the vitality and stamina of the development of textiles and clothing will continue to be released. In the first quarter, the per capita clothing consumption expenditure of Chinese residents increased by 9.4% year-on-year. The new expectation of the people for a better life will promote the rapid improvement of the consumer experience and consumption environment, and the consumption channels and consumption fields will be more abundant. The domestic demand market will still achieve a stable and sustained textile industry. Development provides strong support.

In terms of external demand, the global economy continues to recover and the situation is wide-ranging. Investment and trade in developed economies are expected to resume growth. The demand for textile and apparel international markets will continue to accelerate on the track of accelerated recovery. Judging from the policy environment, since the new round of reserve cotton has been launched, domestic cotton prices and domestic and foreign cotton price gaps have remained basically stable.

China's support policies for the real economy have been successively implemented. From May 1st, the manufacturing value-added tax rate will be officially lowered from 17% to 16%. Small-scale value-added taxpayers will also unify the standards, which is expected to effectively reduce the tax burden of textile enterprises.

Uncertain factors still exist, and high-quality development needs to be promoted

Despite the overall external conditions that continue to maintain a steady state, it should be noted that the development of the textile industry in 2018 still faces many uncertainties and uncertainties. At present, the trade friction between China and the United States is constantly escalating, the prospects for external demand are uncertain, and the international trade environment is also at risk of deterioration; the shortage of labor in enterprises is widespread, the supply of high-quality cotton is still insufficient, and the constraints of production factors are always present; the pressure of environmental protection supervision is still outstanding. It is an important factor affecting the production and investment of the industry. Faced with many risk difficulties, the textile industry will fully implement the spirit of the 19th National Congress of the Communist Party of China and the Central Economic Work Conference, continue to adhere to the general tone of steady progress, and establish a textile power as a strategic goal in 2020, and further promote the supply side structure. Sexual reform, continue to implement the "three products" strategy, accelerate the pace of industrial transformation and upgrading, and strive to achieve steady growth in the main operational indicators in 2018, improve the quality and efficiency of the operation, and promote the textile industry to achieve high quality, stable and healthy development.