According to the data released by China Cotton Textile Association (hereinafter referred to as CCTA), the production and operation of China's cotton textile enterprises improved steadily in August 2021; the main economic indicators slowed down in the January-August period; the performance of tracked key enterprises was better than that of the industry clusters.

Firstly, operating income grew year-on-year, of which cost decreased slightly.

Tracking data showed that the total operating income of cotton textile enterprises in the January-August period increased by 24.3% year-on-year, 1.4 percentage points higher than that of the January-July period.

From January to August, the operating costs of cotton textile enterprises grew by 21.4% year-on-year, 0.7 percentage points higher than the first seven months of 2021. Thereinto, operating costs accounted for 88.7% of operating income, down 0.5 percentage points from January to July.

From January to August, the cumulative operating income of cluster enterprises climbed by 6.2% year-on-year, 2.6 percentage points lower than that from January to July; the cumulative operating cost swelled by 10.4% year-on-year, 1.2 percentage points higher than that from January to July. And the growth rate of operating costs was higher than that of operating income, adding greater production and operation pressure on cluster enterprises.

Secondly, export orders increased. And export delivery value improved continually.

Data showed that from January to August of 2021, the export delivery value of cotton textile enterprises increased by 10.1% year-on-year, down 0.7 percentage points from January to July; the export delivery value accounted for 12.9% of the industrial sales value, 0.7 percentage points higher than that of the first seven months.

The cumulative export delivery value of cluster enterprises from January to August grew by 13.6% year-on-year, 1.8 percentage points higher than the performance of the January to July period. The export delivery value accounted for 16.2% of the industrial sales value, decreased by 0.6 percentage points from January to July. With the increased foreign trade orders, the export of cluster enterprises performed better.

Thirdly, the profit margin fell slightly.

According to the data, from January to August in 2021, the industrial added value of cotton textile enterprises rose by 16.9% year-on-year, 7.4 percentage points higher than January to July period.

From January to August, the total profit of cotton textile enterprises surged by 71.5% year-on-year, and the growth rate was 15.2 percentage points lower than that from January to July; the profit rate increased by 1.2% year-on-year, and its growth rate was 0.3 percentage points lower than that from January to July.

In general, the tracked enterprise operated relatively stable in August. Christmas orders have been placed earlier than previous years due to the extended delivery time caused by the Covid-19 pandemic. The slack season performed well. But corporate profits have fallen because of the increased raw materials price and shipping costs. China's cotton textile industry is facing pressure.

The data in this report comes from the China Cotton Textile Association, involving more than 260 cotton textile enterprises and about 15 industrial clusters across the country. The total spinning capacity accounts for about 75% of the national total, which is representative.

Source: CHINA TEXTILE LEADER Express