Woolen production factor cost risk must be vigilant

In the first half of this year, although the economic situation at home and abroad was complex and changeable, the wool textile industry in China overcame the influence of many unfavorable factors and tried to digest operating costs, reduce losses and improve efficiency, and the overall operation was relatively stable. In the second half of the year, the external pressure of China's wool textile industry will continue to increase. With the slowdown in export sales, domestic sales will still play a major supporting role. At the same time, companies must still be alert to operational risks.

From January to May, gross profit of main business of 1,079 households above the wool textile industry reached 69.225 billion yuan, a year-on-year increase of 27.16%; total profit was 3.271 billion yuan, and total profit increased by 792 million yuan, an increase of 31.96% year-on-year. At the same time, the wool textile industry has a high proportion of domestic sales, a balance between supply and demand, stable capital operation efficiency, stable industrial economic operation quality, and further enhanced efficiency. At the same time, the export of wool textile products continued to grow, and the export delivery value of enterprises above designated size increased by 19.72% year-on-year.

The relevant person in charge of the China Wool Textile Industry Association believes that domestic sales are important markets for the future development of the wool textile industry and will also become the main support for the development of the industry. The price trend of wool in the first half of the year may continue into the second half of the year. If raw material costs rise too fast, companies must still be alert to operational risks. With the rising cost of production factors such as wool raw materials this year, problems in any link in the wool textile industry chain will affect the stable development of the industry as a whole. The industry is extremely sensitive to changes in the outside world and business risks cannot be ignored.

Since the beginning of this year, the central bank has continued to increase monetary control, and used the interest rate, differential reserve system, and exchange rate policies to control liquidity and inflationary pressures. Therefore, this year, the wool textile enterprises will enter the business period with rising financial costs and tighter funding. For the wool industry, since December 25 last year, the tropical low-pressure “Tasa” has brought continuous heavy rainfall to the northeast of Australia, causing the world’s largest wool exporter to suffer the worst flooding in 50 years. On February 22nd this year, a 6.3-magnitude earthquake struck again in New Zealand, the world’s second-largest wool exporter, and the city’s transport port for wool was severely damaged. The week’s auction for wool was cancelled. Since the fourth quarter of last year, the price of wool has been rising, resulting in increased production costs. High-cost operations will become the norm in the wool textile industry. In recent years, recruitment, employment, and labor retention have always been problems that wool textile companies must face. Although the average annual growth rate of workers' wages and benefits is maintained at around 20%, many companies still have difficulties in recruiting workers, and the turnover rate of employees is high. Enterprises have to face the dual pressures of rising labor costs and unstable workforce. In addition, the turmoil in the international situation and the complex global economic situation have led to the elimination of inhibitory factors in the recovery of international market demand, which will have a certain impact on the economic operation of the wool textile industry in the second half of the year.

Industry analysts believe that the challenge can form a force that will be forced into the opposite direction. During the development of the industry in the second half of the year, the company will accelerate the transformation of growth patterns, increase research on the consumer market, identify market positioning, explore effective marketing channels, and form production and sales. Virtuous cycle. The wool textile industry should continuously expand the scope of resource utilization, exchange innovative experiences, increase communication between upstream and downstream enterprises and equipment manufacturing companies, strengthen the linkage effect of industrial chain R&D, and promote industrial transformation and upgrading.