According to the National Bureau of Statistics, from January to June 2023, the output of dyed and printed fabrics by scale-above enterprises in the dyeing and printing industry reached 26.964 billion meters, a year-on-year increase of 1.66%, 1.93 percentage points higher than the growth rate in the first quarter, showing a gradual upward trend. In terms of monthly output, the output in each month of the first half of the year remained at a high level of over 50 billion meters. Since 2023, with the adjustment and optimization of China's epidemic prevention and control policies, offline consumption scenarios for residents have become increasingly rich, and the terminal consumption of textile and apparel products has shown a warming and positive trend, providing important support for the recovery of production in the dyeing and printing industry. Data show that in the first half of the year, the retail sales of clothing, shoes, hats, and textiles by above-scale units increased by 12.8% year-on-year, 3.8 percentage points higher than in the first quarter; among the online retail sales of physical goods, clothing and apparel increased by 13.3% year-on-year, respectively 4.4 and 3.0 percentage points higher than food and necessities.
In the first half of the year, the main operating quality indicators of the dyeing and printing industry remained at a low level, and operating efficiency decreased. According to the National Bureau of Statistics, from January to June 2023, the three-expense ratio of scale-above dyeing and printing enterprises was 7.07%, a year-on-year increase of 0.27 percentage points, of which financial expenses increased by 13.33%; the finished product turnover rate was 14.23 times/year, a year-on-year decrease of 9.00%; the accounts receivable turnover rate was 8.18 times/year, a year-on-year decrease of 0.97%; and the total asset turnover rate was 0.94 times/year, a year-on-year decrease of 2.95%.
The main economic benefit indicators of the dyeing and printing industry generally showed a recovery trend, but they were still negative compared with the same period last year, especially the profit margin decreased significantly, and the industry's profitability pressure has not been alleviated. According to the National Bureau of Statistics, from January to June 2023, the operating income of scale-above dyeing and printing enterprises was 136.465 billion yuan, a year-on-year decrease of 3.28%, with the decrease narrowing by 0.90 percentage points compared with the first quarter; the total profit was 3.937 billion yuan, a year-on-year decrease of 24.34%, with the decrease narrowing by 12.33 percentage points compared with the first quarter; the cost-expense profit ratio was 3.05%, a year-on-year decrease of 0.86 percentage points; and the sales profit ratio was 2.89%, a year-on-year decrease of 0.80 percentage points. Among the 1740 scale-above dyeing and printing enterprises, 672 enterprises suffered losses, with a loss rate of 38.62%, an increase of 3.47 percentage points year-on-year; the total losses of loss-making enterprises were 2.194 billion yuan, a year-on-year increase of 24.23%.
The main reasons for the decline in the profitability of the dyeing and printing industry are that although epidemic prevention and control has been fully opened, the "scar effect" of the epidemic has not yet faded, the recovery of domestic textile and apparel products, which are discretionary consumption, is still insufficient, and international market demand is also showing a shrinking trend. Weak effective demand has led to intensified market competition, and under the background of high production costs, the industry's profit margin has been squeezed.
According to the data from the General Administration of Customs of China, from January to June 2023, the export volume of eight major categories of dyeing and printing products was 15.776 billion meters, a year-on-year increase of 5.37%, 6.20 percentage points higher than the growth rate in the first quarter; the export value was US\$15.284 billion, a year-on-year decrease of 3.98%, with the decrease narrowing by 5.17 percentage points compared with the first quarter; and the average export unit price was US\$0.97/meter, a year-on-year decrease of 8.87%. In the first half of 2023, the export of the dyeing and printing industry started under pressure, and then the export growth rate gradually increased. The export volume growth rate turned positive from April, and the decline in export value gradually narrowed, but the decline in the average export unit price was relatively significant.
Indirect exports of dyeing and printing products continued to be under pressure. From January to June, China's apparel exports amounted to US\$74.98 billion, a year-on-year decrease of 5.9%, with the decrease widening by 4.6 percentage points compared with the first quarter; China's household textile exports amounted to US\$21.282 billion, a year-on-year decrease of 5.62%, with the decrease slightly narrowing by 0.19 percentage points compared with the first quarter.
From the perspective of export markets, from January to June, China's exports of eight major categories of dyeing and printing products to ASEAN reached 3.581 billion meters, a year-on-year increase of 1.02%, accounting for 22.70% of total exports, 4.35 percentage points lower than the growth rate of total exports of eight major categories of dyeing and printing products; exports to RCEP trading partners reached 3.841 billion meters, a year-on-year increase of 0.46%, 4.91 percentage points lower than the growth rate of total exports of eight major categories of dyeing and printing products. From a national perspective, China's dyeing and printing industry exports have shown new changes. Exports to major exporting countries such as Nigeria, Vietnam, and Bangladesh have decreased to varying degrees, while exports to Indonesia, Brazil, India, and Russia have achieved faster growth.
In the first half of the year, faced with a complex and changing domestic and international environment, dyeing and printing enterprises maintained strategic determination, overcame multiple risks and challenges, and promoted the recovery of the dyeing and printing industry under pressure. Looking forward to the second half of the year, the global economic situation remains complex and severe, and the industry faces many unstable and uncertain factors. The spillover effect of the monetary policy tightening of major economies is prominent. Against the backdrop of insufficient global economic growth momentum and slowing global trade growth, weak international market demand will become the new norm, and China's dyeing and printing industry exports may continue to be under pressure. However, as the world's largest producer and exporter of dyeing and printing products, China has strong competitiveness in the international market, and the industry has the foundation to achieve stable foreign trade development. In the face of pressure on economic and social development, the country has introduced a series of policy measures focusing on ensuring people's livelihood, promoting consumption, and supporting the development and growth of the private economy, which will help enhance residents' consumption expectations, promote the upgrading and expansion of consumption demand, and alleviate the operating pressure on enterprises. The advantages of the ultra-large-scale domestic market and the huge consumption potential are the key for the industry to cope with profound changes in the international environment and withstand downward economic pressure, and are an important foundation for the sustained recovery of the industry's economy. As a package of policies takes effect, the production and demand cycle in the dyeing and printing industry will become smoother, and the quality and efficiency of the industry's development will gradually improve.
