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Sales of Textile Machinery Maintained Growth in 2011

2012-2-22

In the first three quarters of 2011, the sales of textile machinery and equipment amounted to CNY 29.95 billion, up 10.44% year-on-year. The textile machinery realized a total profit of CNY 1.5 billion, down 0.37%. The pre-tax profit stood at CNY 2.69 billion, up 6.26%. The per-capita profit dropped moderately by 2.73% compared to the same period of 2010.

The setbacks encountered during the operation of textile economy, especially textile trade disputes and tariff barrier, have exerted negative effects on investors´ confidence. As a result, both production and sales of textile machinery had declined. As trade disputes being solved and export refund policy adjusted (export refund bore by local government reduced to 7.5% from the previous 25%), textile export recovered and investor regained confidence in buying new machines. The sales began to pick up again in the second half of the year.

Although the shortage of coal and power has relieved and steel price began to drop back, the textile machinery sector was still haunted by price hiking of coal, power, oil and transportation. In the first three quarters of 2011, the power price rose 15%. Under strong competition on market, these costs are hardly offset by increasing selling prices. Therefore, the economic benefits of the sector grew slowly. In the January-September period, the sector produced a profit of CNY 1.5 billion, dropped slightly by 0.37% compared to same period of 2010, with a profit rate of only 4.66%.

The textile machinery sector is highly concentrated in Jiangsu, Zhejiang, Shandong provinces as well as Beijing and Shanghai, which cover 80.73% of total sales. China Textile Machinery Group Corporation earned a sales revenue of CNY 4.83 billion, covering 18.96% of the total, ranking the second place.

Source:China Textile Leader
 
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