Recently, China'S Textile And Garment Enterprises Showed No Optimism Last Year'S Earnings Report.

Beginning in 2008, China continued to slump.

The export industry has not been improving.

Since the entry into the so-called "Post Crisis Era" in 2010, the expansion of the domestic demand market has been seen as a key factor in saving this traditional industry.

In the process, garment enterprises with a certain brand superiority in China are regarded as the first group to benefit.

This good idea even reached its peak in 2011, but is this really the case?

As of April 30th, domestic A shares were listed.

In 2011, the financial reports showed no satisfactory results.

According to the statistics of China Securities channel, 73 listed textile and garment enterprises in China achieved a total operating income of 166 billion 753 million yuan last year, an increase of 15.63% over the same period last year. However, the total net profit attributable to shareholders of the parent company during the period was only 12 billion 470 million yuan, up only 2.16%. from the same period last year.

Exports are still sluggish

At the just concluded "three session of the 111st Canton Fair", textile

Parallel to medicine is still one of the biggest trading protagonists.

However, in a recent research report on the textile and garment industry of Fangzheng securities [5.32 -1.66% share research institute, the performance of European and American buyers has been described as "chill".

In the first phase of the Canton Fair, the volume of mechanical and electrical products in Europe and the United States dropped by more than 30%, according to the research report.

In the three phase of the Canton Fair, foreign trade enterprises such as shoes and garments, which are also the main export markets in Europe and the United States, are not optimistic about the export situation.

Founder Securities quoted China Export and Credit Insurance Corp's "E R I index" for the first quarter of 2012, which was released by China Export and Credit Insurance Corp. In the ten major industries, such as information technology, energy, medicine, chemical products and metal products, the E R I index of China's textile and garment industry showed a decreasing trend in the first quarter, and the credit level was listed as C level.

Founder Securities believes that in the first quarter, the world economy is still not out of the doldrums. The developed economies, especially the European market, are greatly affected by debt crisis, fiscal tightening and high unemployment rate, and the demand for trade has shrunk sharply.

"In the first quarter of 2012, the E R I composite index fell from 103.90 in the fourth quarter of last year to 102.29 points, indicating that China's short-term export trade credit risk rose slightly."

Orient Securities believes that the economic efficiency, investment, export and domestic sales of textile and garment industry all maintained growth in the first quarter of this year, but the gross profit margin of manufacturing export enterprises will decrease significantly compared with the same period last year.

Compared with pure manufacturing export enterprises, Dongfang securities predicts that the overall gross margin will continue to rise year by year.