Looking back on 2022 and forging ahead in 2023 | Dong Chunxing: Quality + innovation, integrating double cycles, the hemp textile industry improves the “small but beautiful” quality

Looking back on 2022 and forging ahead in 2023 | Dong Chunxing: Quality + innovation, integrating double cycles, the linen textile industry improves the “small but beautiful” quality

In 2022, the complex and severe domestic and international economic and market situations, as well as the challenges of multiple unexpected factors, will have a greater impact and impact on the development of China’s linen textile industry. However, the linen textile industry persisted in innovation and pioneering amidst difficulties and challenges, and has continued its recovery and development trend as a whole. The overall development has been running smoothly, especially in terms of operating income and total profit growth, becoming the double champion of the textile industry. At the end of the year and the beginning of the year, Dong Chunxing, president of the China Linen Textile Industry Association, accepted an exclusive interview with a reporter from Textile and Apparel Weekly to interpret the development of the linen textile industry and look forward to the development situation in 2023.

High raw material costs drive benefits to the industrial chain

The future development of the industry needs to be cautious

Compared with cotton spinning, chemical fiber and other large industries that shoulder the heavy responsibility of important national livelihood industries, Dong Chunxing described the linen spinning industry as an industry with characteristics that improves the quality of people’s lives. And such a small and beautiful industry will rank first in the textile industry in terms of operating income and total profit growth under the difficult situation in 2022. “From January to November 2022, the operating income of regulated enterprises in the linen textile industry increased by more than 16%, and the total profit increased by 54% year-on-year, ranking first in the entire industry.” Dong Chunxing analyzed that the achievement of this double champion was based on many aspects s reason. First, because the overall scale of the linen textile industry is small, there are only more than 260 regulated enterprises, accounting for only 0.7% of the entire industry. It is precisely because of the high concentration of the industry, the strong innovation of enterprises, and the low base of the previous year, so the overall The data looks good. The second is because the price of linen spinning raw materials will increase significantly in 2022, which will drive the benefits of the entire industry chain such as yarn and fabrics. For example, in the largest flax industry in the industry, the price of its raw materials has been rising all the way, even reaching the highest peak in history. However, most companies have inventories for half a year or seven or eight months, and their profits Most of the space comes from this. The shortage and price increase of flax raw materials have also led to the rise of hemp raw materials, which has led to an improvement in the economic benefits of the industry.

Although the linen textile market has rebounded strongly, the industry is also facing a situation where domestic production capacity expansion is obvious, international and domestic inflationary pressures are increasing, and market variables are increasing. Dong Chunxing mentioned that excessively high prices will suppress market demand and will bring certain risks to the overall market operation of the industry. Market uncertainty will increase rapidly, and the pressure on corporate operations will also further increase. To this end, the Linen Textile Association issued an initiative in November 2022, calling on the industry to control production capacity, determine production based on sales, purchase raw materials rationally, and seize the initiative in the market. When operating traditional Chinese medicines, enterprises should calmly judge the existing market conditions, objectively analyze market information, adopt rational market trade behaviors, and be cautious in making decisions during the business decision-making process to avoid blind and impulsive market behaviors.

The linen textile industry is an industry that is mainly exported. Especially in 2022, due to the impact of the domestic epidemic, the market of the linen textile industry is mainly concentrated in exports, and the growth rate is relatively high. A significant increase compared with 2021. “In fact, in order to avoid risks, the Linen Textile Association has been promoting hemp culture and hemp products in the domestic market through various forms in recent years, advocating the expansion of the domestic market, hoping that domestic and foreign sales can reach a relatively balanced state. However, in the past three years, due to the epidemic, The domestic sales market has not improved much. With the adjustment and optimization of domestic epidemic prevention and control policies, we hope that the industry can reach a new level in developing domestic sales.” Dong Chunxing said.

Under difficult circumstances, innovation creates industry highlights

Although companies are facing a more difficult situation in 2022, some advantaged companies still rely on innovation to achieve certain achievements in their respective fields and become a highlight of the industry.

Dong Chunxing introduced that in 2022, Qingdao Hantai, Jinda Holdings, and Tongling Huayuan participated in the French PV exhibition, showing the world fashions such as flax, hemp, hemp organic cotton, hemp polyester, and hemp TencelEnvironmentally friendly Tencel linen fabrics, linenviscose stretch fabrics, pure linen chambray fabrics, linen yarn-dyed fabrics, pure linen Print series. “There are about 40 companies in China’s textile industry that are eligible to participate in the PV exhibition, and the linen textile industry accounts for three, accounting for 7.5%. This shows that the linen textile industry is an industry with strong innovation.” Dong Chunxing said.