Imprint 2022·Confidence | Strengthen the foundation and face difficulties
2022 is coming to an end. Building confidence and facing difficulties is a common issue faced by industry colleagues this year.
The recently held Central Economic Work Conference pointed out that the current foundation for my country’s economic recovery is not yet solid, and the triple pressure of shrinking demand, supply shocks, and weakening expectations is still great, and the external environment is turbulent, which has deepened the impact on our economy. . However, it must be noted that our country’s economy is highly resilient, has great potential, and is full of vitality. The effects of various policies continue to show, and next year’s economic performance is expected to rebound overall.
This positive signal encourages textile companies to overcome difficulties and adds confidence to the development of the industry.
Improve the ability to resist risks
Since 2022, affected by the complex and severe domestic and foreign macroeconomic situation and multiple unexpected factors, the pressure on both supply and demand of my country’s textile industry has been superimposed, and the economic operation has shown a slowdown. According to data from the National Bureau of Statistics, in the first three quarters of 2022, the capacity utilization rates of the national textile industry and chemical fiber industry were 77.6% and 83.3% respectively, both down by about 2 percentage points from the same period last year. The industrial added value of textile enterprises above designated size nationwide decreased by 0.4% year-on-year, operating income increased by 3.1% year-on-year, and total profits decreased by 23.6% year-on-year. The growth rates all slowed down compared with the same period last year. In the first three quarters, retail sales of clothing, shoes, hats, and knitted textiles above designated size in my country decreased by 4% year-on-year. With the pace of production and sales slowing down, the overall prosperity of the textile industry continues to be under pressure.
After the “Golden Nine and Silver Ten”, the orders in the hands of textile enterprises are still insufficient, and the operating rate of enterprises has declined. The market’s willingness to purchase is also low, and textile companies’ confidence in the market outlook has been dampened. Especially this year, many textile foreign trade companies have encountered difficulties in exports, and the pressure to withdraw funds at the end of the year has become increasingly apparent. Zhu Rongping, executive deputy general manager of Black Peony (Group) Co., Ltd., told a reporter from China Textile News that foreign market demand has declined, domestic sales are not optimistic, and lack of orders is the biggest difficulty faced by enterprises.
“2022 is destined to be a difficult year for the textile industry, and it is also a difficult year for Pacific Textile. The new crown pneumonia epidemic has been combined with many unfavorable factors such as the Russia-Ukraine conflict, which has further impacted the global supply chain and further impacted manufacturing profits. Compression, the pressure on enterprises can be imagined.” Zhao Qizhi, director of operations of Hutai (Panyu) Textile Printing and Dyeing Co., Ltd. (hereinafter referred to as “Hutai Textile”), said that in order to effectively alleviate a series of risks and challenges such as rising raw material costs and year-on-year declines in orders, While actively promoting lean production and controlling costs, Hutai Textile continues to enhance its awareness of risk control and integrates green, digital, and intelligent into every aspect of development, transforming it into Internal motivation has effectively enhanced the innovation activity and market competitiveness of enterprises.
“Hutai Textile mainly focuses on foreign trade, and the proportion of domestic orders has not been high. In the future, we will adjust our strategic layout and increase the development of the domestic market.” When talking about the future development of the company, Zhao Qizhi said.
In the three years since the outbreak of the new coronavirus pneumonia, the tourism and hotel industries have been greatly affected. Home textile linen supplier Shaanxi Yalan Textile Group’s main customers are high-end hotels in the west, and it is also facing increasing operating pressure.
According to Chairman Han Ling, the company’s difficulties are mainly manifested in: First, the tourism market is sluggish, demand continues to decline, and industry competition pressure intensifies, resulting in a sharp decline in corporate revenue; second, various expenses continue to rise, including freight and raw materials. The increase in large fixed expenses such as costs and labor costs has further aggravated the difficulty of capital turnover and operation. Enterprises have income but very little profit. Third, due to the continuous decline of enterprise income and the difficulty of ensuring profits, the conditions for enterprise financing and loans are restricted, further exacerbating the problem. Business difficulties.
Faced with the severe market situation, Yalan people actively responded, taking multiple measures at the same time, implementing comprehensive policies, giving full play to the advantages of innovation, and through a series of concept innovation, model innovation, mechanism innovation, product innovation, channel expansion, supply chain integration, etc. These measures have effectively improved the company’s ability to resist risks.
Looking forward to 2023, various uncertain and unstable factors will still exist, and development pressure will still be prominent, forming a new round of tests for the ability of textile enterprises to resist risks.
Enhance confidence in meeting challenges
Talking about the word “confidence”, Qiu Yafu, Secretary of the Party Committee and Chairman of the Board of Directors of Ruyi Group, said: “Confidence is more important than gold. Ruyi has always developed and progressed by overcoming difficulties and constantly surpassed in responding to challenges. On the new journey, We have strong determination and will to face challenges, and sufficient ability and wisdom to overcome all kinds of risks and challenges.”
This year, Ruyi Group has gone all out to ensure production and strive to maintain development focus and operational endurance. In the first three quarters, Ruyi Group’s revenue and profit both increased, achieving operating income of 567 million yuan, a year-on-year increase of 32.34%; net profit was 17.2087 million yuan, a year-on-year increase of 139.75%. In addition, functional fabrics stand out during the epidemic. Ruyi Group has increased its efforts in scientific and technological research and developed a series of health protection products such as anti-viral fabrics, which have become the highlight of market development this year.
Ruyi Group President Su Xiao told reporters that Ruyi Group has formulated a development plan for the next three years to achieve high-quality development.��Efforts will be made to guide enterprises to strengthen their confidence in development, solve development problems, and help the city further optimize the business environment under the epidemic. Service enterprise specialists dispatched by the local government will recently introduce 11 policies and measures to support enterprises in coping with the impact of the epidemic, as well as enterprise-friendly policies such as “Several Policies and Measures to Help Market Entities Relieve and Resolve Difficulties and Increase Enterprise Activity” and “12 Financial Services Articles”. A special trip was made to the hands of Cao Wei, the person in charge of Changyi Runhua Textile Co., Ltd., to provide services to the company and help the company overcome difficulties. In the company, the specialists understand the situation of the company’s resumption of work and production, listen to the voice of the company, provide relief to the company’s difficulties, and provide first-hand information to help the company quickly resume work and reach production quickly, so that the company can truly feel warm, considerate, and helpful. Temperature of service.
It is reported that in September this year, the central bank established a special re-loan policy for equipment renewal and renovation of more than 200 billion yuan, and the six major banks also expressed their stance in October to provide greater support to the real economy. The recently held Central Economic Work Conference requires that we pay close attention to the transformation and upgrading of traditional industries. It is expected that next year there will be more active fiscal and monetary policies in terms of technological transformation and upgrading of traditional industries, and textile companies will receive greater policy support.
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