Summit On The Sword: Pay Close Attention To China Cotton Textile Industry Association And Hold An Online Forum For Entrepreneurs

On June 7, China Cotton Textile Industry Association held an on-line forum for entrepreneurs to jointly analyze and judge current industry problems and plan subsequent measures to boost confidence, monitor development and effectively help enterprises cope with changes in the situation.

He Yaqiong, director of the Department of consumer goods industry, Ministry of industry and information technology, Cao Xuejun, first-class inspector, Yu Kun, director of textile department, and Zong Ruilong, deputy director of textile department; Sun Ruizhe, President of China Textile Industry Federation, Duan Xiaoping, vice president; Zhu Beina, Secretary of the Party branch and chief supervisor of China Cotton Textile Industry Association, and Dong Kuiyong, President, attended the meeting. Chen Wen, President of Fujian xinhuayuan Textile Group Co., Ltd., Huang Hongbing, general manager of Jinlun clothing (Jiangsu) Co., Ltd., Ji Yijun, Secretary of the Party committee and general manager of Nantong Shuanghong Textile Co., Ltd., Jiang Weimin, general manager of heimudan Textile Co., Ltd., Liu Zibin, Party Secretary, chairman and President of Lutai Textile Co., Ltd., honorary chairman of Dezhou Hengfeng group Su Jianjun, general manager of Xinjiang dongchunxing group; sun Weiting, chairman of Huafu Fashion Co., Ltd.; Yu Yajing, Party Secretary of Xinjiang Zhongtai textile and Garment Group Co., Ltd.; Zhang Hongxia, party secretary and general manager of Shandong Weiqiao Venture Group Co., Ltd.; Zhou Quantao, general manager of Wugang Yinhe Textile Co., Ltd.; Party Secretary of Wuxi Yimian Textile Group Co., Ltd Chairman Zhou Yejun and other 11 entrepreneurs participated in the exchange. The meeting was presided over by Dong Kuiyong, President of China Cotton Textile Industry Association. Zheng Jiewen, vice president of China Cotton Textile Industry Association, Li Jie, vice president and secretary general, Wang Yao and Jing Shenquan, and ye Jianchun, chief engineer, attended the meeting.

In his speech, Duan Xiaoping, vice president of the textile industry, said in his speech that the overall operation of the textile industry in the first quarter was fair, with growth in production, sales and export. From April to may, the industry encountered a series of problems, such as sales obstruction, poor logistics, declining orders, frustrated confidence, and Xinjiang cotton, which led to increased operational risks and increased uncertainties. Although faced with many difficulties, many enterprises have tried various ways to improve their skills, such as diversifying sales channels, paying close attention to business management, improving the level of equipment digitization, informatization and intelligence, so as to make energy saving and consumption reduction to a higher level, strengthen the tracking and service with overseas customers, and pay more attention to the security issues of the capital chain, seek advantages and avoid disadvantages, Guard against business risks. I hope you can share more good experiences online. There are only closed enterprises and no closed industries. Let's work together to build a new textile industry of "science and technology, fashion and green".

Xu Xiaoyuan, Deputy Secretary General of China Cotton Industry Association, introduced the general situation, operation situation, facing situation of the current cotton textile industry, as well as the prospect of the later stage of the market and the investigation on the resumption of production. Generally speaking, the spinning and weaving equipment of cotton textile industry is gradually developing towards automation, intelligence and green. With the continuous improvement of production efficiency, the output of yarn and cloth is basically stable. In 2021, the cotton textile industry will usher in the best year in the past decade, with yarn and cloth output increasing by 10% and 6% respectively; Compared with 2020, the consumption of cotton fiber and non cotton fiber increased by 17.5% and 21.4%, respectively. From January to April in 2022, the utilization rate of equipment decreases and the yarn output is in a negative growth state; Sales volume shrank, with a significant year-on-year decrease; The price difference between domestic and foreign cotton fluctuated sharply, with an average of 5200 yuan / ton since May. In terms of enterprises returning to work and production, the survey on June 1 showed that it was obviously improved, and the capacity utilization rate was gradually improved. 56.5% of the enterprises had an opening rate of more than 90%, an increase of 11.5 percentage points compared with the survey on May 18.

In the exchange session of entrepreneurs in the forum, the participating entrepreneurs made speeches on the business situation of enterprises from January to may, the difficulties encountered and the countermeasures taken, the market expectation for the third quarter, and the demands and suggestions for industrial policies. The main points of view are as follows:

Business situation

In the first five months of this year, the production and sales data of most enterprises have declined year-on-year. Affected by the epidemic, domestic and foreign demand is weak, the purchasing power of the consumer side is declining, and the orders in domestic and foreign trade markets have declined. At the same time, logistics is blocked, production and sales are unbalanced, inventory pressure is increasing, and capital chain pressure is increasing. In spite of the great difficulties encountered, enterprises are adhering to production in order to ensure employment and workers' life.

The profit level of enterprises generally declined. The prices of raw and auxiliary materials have generally risen, especially cotton prices this year have increased by more than 60% compared with the same period last year. The transmission of product prices to the downstream of the industrial chain is blocked, and the terminal is unable to accept it. The cost of various factors (epidemic prevention and control costs, transportation costs, labor costs per unit output, energy costs, management costs, etc.) has squeezed the profit space of enterprises.

Entrepreneurs generally believe that the market recovery will take some time and long-term preparation is needed.

Effective measures

Response to the epidemic situation: improve the emergency response capacity of enterprises, ensure the health and safety of employees, adopt the principle of "three on the spot production, on-site dining and on-site accommodation" during the epidemic period to minimize the impact of the epidemic.

Reduce inventory, reduce inventory. Appropriate subsidies should be given to the employees in rotation, so as to stabilize the staff team and enhance the cohesion.

Pay close attention to sales: take the initiative to make profits, not allow the market, orders should be fully received to meet the needs of production. Try our best to catch the information, understand the market situation, grasp the dynamic situation, sell the whole staff, and make a good short and quick campaign.

Product innovation: Aiming at market highlands and market segments, strengthening supply chain R & D cooperation, and strengthening the construction and protection of intellectual property rights. Actively adjust the product structure and develop differentiated, high value and low consumption products.

Market expansion: when the export market is blocked, efforts should be made to expand the proportion of domestic market and overseas markets outside the United States.

Hard training of internal skills: look inward, strengthen the strengths and make up for the weaknesses, build a solid foundation, do a good job in basic management, and do a good job in each single. By means of information management and other means, the potential of upgrading is deeply explored and the benchmarking work is carried out in an all-round way.

Technical transformation: Based on the long-term, we should constantly carry out equipment technical transformation, promote the intelligent transformation of enterprises, and comprehensively improve the level of enterprise informatization and intelligence.

Appeal and suggestion

Scientific epidemic prevention: it is suggested that the local government should study and judge the epidemic situation scientifically and implement precise policies. Under the influence of repeated outbreaks, it is necessary to prevent one size fits all measures to ensure smooth logistics and normal operation of enterprises.

Policy implementation: accelerate the implementation of various stable economic policies, and let preferential policies really fall into enterprises. We should increase the policy preference to the traditional manufacturing industry, increase the tax reduction and fee reduction, and postpone the payment of social security fee during the epidemic period, reduce the price of electricity price and other factors, and reduce the cost of enterprises.

Raw material guarantee: from the perspective of ensuring the safety of the industrial chain supply chain, more flexible and effective measures should be taken to ensure the supply and matching of cotton and non cotton fibers, so as to realize the stability and safety of raw materials.

Standardizing the market: standardizing the market behavior of industry enterprises and avoiding vicious competition.

Quota allocation: Cotton quota should be inclined to the enterprises with export qualification, so as to change the dilemma that the distribution of general trade quota is too small and the use mode of processing trade quota is restricted. We hope that the distribution rules can be adjusted.

International Logistics: affected by the epidemic situation, the efficiency of raw material import and international express logistics is low, and the time is long. We hope that it can be improved as soon as possible.

Encourage consumption: it is suggested to introduce the textile and clothing consumption incentive policy to guide the consumption of cotton products and other products in Xinjiang from the consumer level.

Bank financing: to create a fair financing environment for enterprises, increase the bank's financial support for textile enterprises, especially small and medium-sized enterprises, and avoid the impact on the enterprise's capital chain due to loan withdrawal.

In her speech, Zhu Beina, chairman of the board of supervisors, expressed great admiration for the perseverance and perseverance of entrepreneurs in the current difficulties. In order to promote the development of cotton industry, the government should promote the development of high-quality cotton industry.

Director he Yaqiong pointed out in his speech that the cotton textile industry is a key industry to stabilize employment, foreign trade, people's livelihood and stability. The Party Central Committee and the State Council attach great importance to the development of the cotton textile industry. Since the beginning of this year, the rising prices of raw materials, insufficient demand at home and abroad, and the spread of epidemic diseases in various places have brought greater uncertainty and challenges to the stable development of China's cotton textile industry. We should face up to the difficulties, strengthen our confidence, face the difficulties and actively respond to them. He said that we should thoroughly implement the spirit of General Secretary Xi Jinping's important instructions, conscientiously implement the decision-making and deployment of the Party Central Committee and the State Council, take deepening the structural reform of the supply side as the main line, improve the intelligent and green development level of the cotton textile industry, promote the collaborative innovation of the upstream and downstream of the textile industry chain, enhance the quality brand competitiveness of cotton products, and promote the high-quality development of the cotton textile industry.

In his speech, Cao Xuejun, a first-class inspector, said that the current difficulties in the industry are not only affected by the short-term epidemic situation, but also by the structural factors of the industry. The prices of raw materials are high, the demand for the latter is insufficient, the costs are high, and the operating rate, production and marketing rate and profit margin of the industrial chain are all declining. The impact of the epidemic situation is short-term, and industry adjustment is an inevitable process. In May, the State Council issued 33 articles on stable growth, and the state office also issued opinions on promoting the stability and quality improvement of foreign trade. It is believed that with the implementation of the policy, the development environment of the industry will be improved. China's long-term economic fundamentals have not changed, which will support the stable development of textile industry. The advantages of China's industrial chain have always existed, and the industry's resilience against risks and shocks is still strong. We still need to firm our confidence in development. The next step is to continue to accelerate the high-quality development of the industry and improve the intelligent and green level of the cotton textile industry. Promote collaborative innovation of industrial chain, support high-end diversified development of enterprises, expand new industrial fields and new markets, and improve the market competitiveness of cotton products. ‍

In his concluding speech, President sun Ruizhe first reported the economic operation of the textile industry. From January to February this year, the industrial added value of the textile industry still achieved a certain growth on the basis of the higher growth rate in the same period of last year, with a year-on-year increase of 6.7% and an average annual growth rate of 19.2% in two years. The retail sales of clothing, shoes, hats and knitwear above the quota reached 238.2 billion yuan, up 4.8% year-on-year, 3% higher than that before the epidemic (the same period in 2019). Online retail sales of wearing goods increased by 3.9% year on year. The export of textiles and clothing reached 50.2 billion US dollars for the first time in the first two months, with a year-on-year increase of 8.8%. The export scale reached a record high in the same period. In terms of investment, the textile industry increased by 36.3%, the clothing industry by 46.2%, and the chemical fiber industry by 53.9%. The growth rate increased by 11.5%, 21.6% and 40.5% respectively compared with the same period of last year. However, since March, the textile industry has been faced with the pressure of rising costs, poor logistics and insufficient demand. It is experiencing the stage dilemma of insufficient operation, high inventory and reduced profits. Under the static management measures of epidemic situation, textile enterprises and textile and garment trading markets in epidemic areas have been shut down successively, and raw materials warehousing and product delivery have been delayed, resulting in loss of orders and contract breach. Other textile enterprises that rely on Jiangsu, Zhejiang and Shanghai for supporting upstream facilities are also affected to a certain extent.

Recently, China Textile Federation has conducted a survey on nearly 500 key textile enterprises, 15 industrial clusters in the East and 13 industrial parks in the central and western regions around the epidemic situation. The results show that the resumption of work and production of enterprises has been steadily promoted. In late May, some specialized markets in Zhejiang and other places were temporarily closed due to the epidemic, and all of them have resumed business. It is common to start work and resume load. According to the survey data, before the middle of May, 55% of the surveyed enterprises in the cotton textile industry started operating less than 80%, and after the middle of May, about 56.5% of the surveyed enterprises had an opening rate of more than 90%. Inventory pressure is prominent. According to the survey, nearly 60% of yarn production enterprises have inventory of one month or more, which is more than twice of the normal inventory. Nearly 30% of the enterprises have their raw cloth warehouses for one month or more.

President sun Ruizhe pointed out that as the most traditional and symbolic component of the textile industry, cotton textile is not only a basic and supporting industry, but also a leading and strategic force. The development of the industry is highly related to the national economy and people's livelihood, which is of special importance in the textile and garment industry. If we say that the textile industry is the mother industry of China's modern industry, the cotton textile industry is the mother industry of China's textile industry. The export of China's cotton textiles and clothing accounts for about 1 / 4 of the whole industry. The development of the cotton textile industry has attracted global attention. Under the background of the deepening game among big countries, the cotton textile industry has been pushed to the top of the waves and become an important battlefield of International Geopolitics.

For the future development of the industry, President sun Ruizhe proposed that there should be more down-to-earth policies and more market-oriented measures, and greater efforts should be made to promote domestic demand and make more purposeful efforts. First of all, it is necessary to effectively promote the implementation of various policies, so that preferential policies can be effectively implemented in enterprises, especially for the representative industries with obvious advantages in employment and export. Secondly, it is suggested that more market-oriented measures should be adopted in cotton quota distribution, import and circulation to ensure the efficient operation of the supply chain; Third, we should encourage domestic demand more vigorously, and propose to optimize and upgrade China's cotton textile industry chain through financial subsidies, tax incentives and special credit, so as to promote the consumption of textiles and clothing, especially cotton products in Xinjiang; Fourth, we should make more purposeful efforts to practice our internal skills and re layout. We suggest that "we should have the strength to swim up, we should have patience to swim down, we should have the courage to cross the border, and we should follow closely when we can't see clearly".

Finally, he quoted the poem "chanting cotton" written by Zuo he he, a contemporary poet, that is, "do not fall in love with emptiness, rank in summer flowers, clean your body in green fields, and spread clouds and clouds. When you are cold, you will see great ambition, and snow and ice will warm thousands of homes in winter." he encouraged the cotton textile industry to continue to adhere to the indomitable spirit of dedication and ideological ambition in the new era. ‍

At the end of the meeting, the signing ceremony of "2022 Jinlun · national survey on high quality development of cotton textile industry" was held under the joint witness of leaders and entrepreneurs. Jing Shenquan, vice president of China cotton merchants association, and Yao Jian, executive deputy general manager of Jinlun clothing, signed the contract as representatives of both sides. As one of the most important carding equipment suppliers in the cotton textile industry, Jinlun card clothing has been actively supporting the development of the cotton textile industry. In this activity, Jinlun will cooperate with the China Cotton Textile Industry Association to enter the major cotton textile regions and enterprises in China, carry out in-depth investigation and Research on the next high-quality development direction and path of the industry, and sort out and summarize, Promote advanced practices and experience to the whole industry.

The new form and effective results of the entrepreneurs' forum not only gathered some advanced measures to deal with the difficulties, but also put forward the practical demands of the industry, which strengthened the confidence of the enterprise development. China Textile Federation and China Cotton Association will continue to actively reflect the demands of enterprises and create a better environment for high-quality development of the industry.