Behind The Return Of Indian Textile Orders: The Registered Volume Of China'S Textile Enterprises Decreased By 19.1% In The First Three Quarters

Due to the impact of the epidemic in India's textile industry, a large number of textile orders have been transferred to China's textile factories, which brings opportunities to the domestic textile industry. Enterprise survey data show that there are 1.33 million textile related enterprises in China, and the industry has grown steadily in recent years. In 2019, there are nearly 220000 new registered enterprises, and 131000 new enterprises are added in the first three quarters of this year, a year-on-year decrease of 19.1%, among which 39000 are newly added in the third quarter. In terms of regional distribution, Zhejiang Province ranks first with 235000 enterprises, of which Shaoxing and Jiaxing together account for 41.6% of the province, and Jiangsu and Guangdong rank second and third respectively. In addition, 78% of enterprises in the whole industry have registered capital less than 1 million.

In 2019, there will be nearly 220000 new enterprises, and 39000 in the first three quarters of this year

According to the first finance and economics report, since September, many large export-oriented textile enterprises in India have been unable to guarantee normal delivery due to the epidemic situation, while European and American retailers have transferred a number of orders originally produced in India to China in order to ensure that supplies in the Thanksgiving and Christmas sales seasons will not be affected. "A large number of Indian textile orders have been transferred to China, with huge orders, which are said to have been scheduled until May next year." Such a news, let the domestic textile and clothing industry, which was cold due to the epidemic situation, return to the spotlight of the capital market.

According to the enterprise survey data, by the middle of October this year, the number of domestic textile industry and textile clothing industry (existing) enterprises reached 1.33 million.

Due to the impact of this year's epidemic, practitioners in the textile industry and the textile and clothing industry are very cautious. From the perspective of enterprise registration, the development of domestic textile and clothing industry in the first three quarters of this year was "bumpy", with a total of 131000 new registrations, a year-on-year decrease of 19.1%. From the perspective of quarter to quarter, the registration of related enterprises in the first quarter fell to the "freezing point", which was only 61% of the same period in 2019. The second quarter was the highest one in the first three quarters of this year, up 132% month on month. The number of registered companies in the third quarter was 39000, down 39% month on month and 32% year on year.

Looking back over the past few years, the domestic textile and clothing industry is in a very stable development stage. According to the enterprise survey data, from 2010 to 2019, the number of newly registered enterprises in the domestic textile and garment industry has increased steadily, with an average annual registration of 118000 from 2010 to 2014 and 171000 from 2015 to 2019, which is 1.45 times of the former, including nearly 220000 new enterprises in 2019.

Zhejiang, Jiangsu and Guangdong ranked the top three, with nearly 80% of enterprises with registered capital less than 1 million

For China's textile and clothing industry, the large-scale industrial cluster is the basis for the stable development of this industry. Enterprise survey data show that domestic textile and garment enterprises are mainly distributed in Zhejiang, Jiangsu, Guangdong, Shandong and other places, of which Zhejiang has the highest number of enterprises, up to 235000, of which Shaoxing and Jiaxing account for 41.6% of the province's total. Jiangsu Province ranks second in terms of the number of over 200000 enterprises, of which Nantong and Suzhou account for 54.8% of the total number of Jiangsu Province.

From the perspective of registered capital, the enterprise inspection data show that most of the domestic textile and garment enterprises have registered capital less than 1 million, accounting for 78% of the total, and related enterprises with registered capital of more than 10 million account for 3% of the total.

Compared with the booming of private textile foreign trade enterprises, the performance of A-share Textile Listed Companies in recent days is also amazing, many companies out of the fast rising bull stock market. The company checked and counted the 2020 interim report data of textile stock listed enterprises which had recently soared. It was found that most enterprises' operating income and net profit in the first half of this year were lower than that in the same period of last year.