Operation of China's Printing and Dyeing Industry in 2014

By Dong Shuxiu, Liu Tiantao, Zhang Xiaoxia, Jia Bin, China Dyeing and Printing Association

1. Output continued to shrink
Domestic printing and dyeing output of enterprises above a designated size (with annual sales of RMB20 million or above) in 2014 was 53 674 million meters, down 2.5% YoY, representing three consecutive years of negative growth. The output from the five coastal provinces of Zhejiang, Jiangsu, Fujian, Guangdong and Shandong was 50 743 million meters, accounting for 94.54% of the total output of China. Among them, the output from Zhejiang, Guangdong and Shandong provinces fell by 2.02%, 7.75% and 7.34% respectively, YoY. Jiangsu and Fujian provinces’ production increased annually 5.47% and 0.77% respectively.
2. Operation performance declined
In 2014, the total profit cost ratio was 5.32%, decreasing 0.09 percentage point. The sales profit ratio was 5.04%, decreasing 0.07 percentage point. Turnover rate of product was 26.73 times per year, down 0.65% YoY. The turnover ratio of total assets was 1.36 times per year, down 3.47% YoY (see Table 1).
From 2011 to 2014, the sales profit margin of the Enterprises remained in the range 3%-5%.
In 2014, the achieved prime operating revenue of the Enterprises was RMB374.71 billion, increasing 3.2% YoY, with the growth rate falling by 4.81% compared with the previous year. The total profit was RMB18.891 billion, increasing 1.78% YoY, with the growth rate falling by 16.37 percentage point compared with 2013. From January to December 2014, the prime operating revenue and total profit of the Enterprises both achieved growth, but the growth rate was lower than those in the previous three years, especially the profit growth, falling more than 10 percentage points.

Table 1  Operation performance indicators of printing and dyeing industry in 2014

Items    Printing and dyeing enterprises above designated size    Cotton finishing    Chemical fiber fabrics finishing
Profit cost ratio (%)    5.32    5.33    5.13
    YoY growth (percentage point)    -0.09    -0.09    0.03
Sales profit ratio (%)    5.04    5.05    4.88
    YoY growth (percentage point)    -0.07    -0.07    0.01
Product turnover rate (times/year)    26.73    26.71    27.16
    YoY growth (%)    -0.65    -0.65    -0.69
Accounts receivable turnover ratio (times/ year)    10.72    10.88    8.29
    YoY growth (%)    -0.62    -0.84    4.60
Total assets turnover ratio (times/year)    1.36    1.39    0.91
    YoY growth (%)    -3.47    -4.04    6.95


Table 2   Exports of eight products of printing and dyeing industry in 2014

Category    Volume
(million meter)    YoY growth
(%)    Value
(million US$)    YoY growth
(%)
Cotton dyed fabric    1 274    10.02    2 806    10.38
Cotton printed cloth    1 995    1.20    2 678    2.06
Cotton blended dyed fabric    262    29.06    606    28.44
Cotton blended printed fabric    82    47.36    163    39.62
Synthetic filament fabric    11 242    6.19    11 527    3.23
Polyester staple fiber fabric    1 438    13.99    1 223    13.58
T/C printed and dyed fabrics    1 925    7.38    2 989    25.89
Rayon staple fabric    2 077    20.17    2 524    40.33
Total    20 295    8.2    24 516    10.58


3. Fixed asset investment growth declined
In 2014, the Enterprises invested RMB36.792 billion in fixed assets, increasing 22.36% YoY. The number of construction projects was 744, increasing 16.25% YoY. The number of new projects was 582, increasing 15.94% YoY. The number of completed projects was 589, increasing 36.03% YoY.
The growth rate of fixed assets investment for the Enterprises was more than 20% over the three consecutive years from 2012 to 2014. However, from January to December 2014, the growth rate of fixed assets investment for the Enterprises fell 4.29 percentage points compared with 2013.
4. Imports and exports fell
In 2014, the total imports and exports of the eight categories of printing and dyeing products was US$27.148 billion, increasing 8.56% YoY, but the growth rate fell 2.71 percentage points compared with 2013. The trade surplus was US$21.884 billion, increasing 13.20% YoY, with the growth rate down 5.5 percentage point from the previous year.
In 2014, the import amount of the eight categories of printing and dyeing products was 1.268 billion meters, decreasing 11.18% YoY. The import value was US$2.632 billion, decreasing 7.24% YoY.
In 2014, the export amount of the eight major categories of printing and dyeing products was 20.295 billion meters, increasing 8.20% YoY, with the growth rate falling 4.20 percentage points from a year earlier. The export value was US$24.516 billion, increasing 10.58% YoY, with the growth rate decreasing 3.67 percentage points compared with 2013.