Cotton textiles are the primary textiles in the industry for their good performance, low prices and simple manufacturing processes. Major consumption and production regions of cotton textiles include North America, Europe, Japan, Southeast Asia, China and India. China is an important cotton textile manufacturing country. The status of the cotton textile industry has not been replaced by other growing industries including chemical fiber, woven, printing and dyeing and home textiles. Cotton textile companies provide large quantities of raw materials and basic products for woven, printing and dyeing, home textile and garment industries in the downstream. The cotton textile industry also affects China’s economy because it not only creates a lot of jobs, but is an important export industry.
According to CRI, in 2016, China’s cotton textile industry developed in stability. Although the fluctuation in cotton prices rendered negative influences on the industry, enterprises were better coping with changes and reported higher returns than that in 2015. In 2016, the sales revenue of the cotton textile industry was CNY 2,256.2 billion, increasing by 4.3% YOY over 2015; gross profits were CNY 115.7 billion, increasing by 2.6% YOY; export delivery value was CNY 99.8 billion, increasing by 3.6% YOY.
A highlight in the industry in 2016 was investment, the YOY growth of which was higher than average. Investment in the textile industry from January to September 2016 grew by 9.54% YOY while that in the cotton fabric processing grew by 18% YOY and that in cotton weaving processing grew by 21.78% YOY.
In this report, CRI analyzes 13 cotton textile enterprises listed in A-share market in China.