In the first half of the year, the economic added value of the industrial textile industry grew 14.4 percent, ranking first in the textile industry; investment amounted to RMB 19.19 billion Yuan, growing 21.13 percent compared with the same period of last year; operation revenue of enterprises above designated scale reached RMB 111.22 billion Yuan, with net profit of RMB 5.74 billion Yuan, up 18.83 percent and 23.4 percent respectively year on year.
Since the beginning of this year, growths of the main economic index of the industrial textile industry have been in the lead.
In the first half of the year, production of the industry has been growing fast. Outputs of main products of more than 50 percent of the enterprises have grown more than 10 percent. Production of nonwoven fabric by enterprises above designated scale was 1.264 million tons, increasing by 12.65 percent year on year; output of tire fabric was 430,000 tons, increasing by 20.6 percent year on year.
Economic performance of the industry has improved markedly. Operation revenue of enterprises above designated scale reached RMB 111.22 billion Yuan, with profit of RMB 5.74 billion Yuan, growing 18.83 percent and 23.4 percent respectively year on year, the growths slightly faster than that at the same period of last year; profit rate of the industry was 5.23 percent, 0.3 percentage points higher than one year ago; 12.41 percent of the industry suffered losses, the industry losing RMB 250 million Yuan, decreasing by 7.74 percent compared with the same period of last year. In terms of sectors, the profit of the nonwoven fabric sector stayed in the leading position of the industry.
Nonwoven fabric is one of the most active fields of industrial textiles. After years' development, China has made significant headway in such aspects as professional fiber and equipment, manufacturing process and post-production processing, and development of terminal applications. China has become the world's largest producer and exporter of nonwoven fabric. However, Chinese products still lag greatly behind advanced foreign products in terms of technology quality. For instance, there is a 1.8 times of price difference between China's imported nonwoven fabric and exported nonwoven fabric. This is mainly caused by China's backwardness in terms of operation mindset, market environment, basic research, industrial chain facility, and talent pool.
The industrial textile industry is a technology-intensive industry. Its application is widely distributed. Generally, purchases are made in smaller quantity and at higher frequency. Customers tend to put forth some special requirements for the products. Therefore, R&D innovation capacity is a core competiveness of a company. China's industrial textile industry needs to improve its R&D capacity, so as to gradually catch up with its foreign counterpart, optimize industrial structure, and improve its international competiveness.
In order to improve industrial competiveness, China Nonwoven & Industrial Textiles Association proposes that the government should accelerate effort to construct an industrial chain optimization model that combines policy, production, academy, research, and application. On policy level, it is hoped that the government would give support to the sound development of the industry and provide favorable policy support to the development of important application market; on industry level, efforts should be made to promote the vertical cooperation between main enterprises on the industrial chain and research institutes, solving problems that restrict the development of the industry through industrial alliance; on enterprise level, it is hoped that enterprises, especially key enterprises, should shoulder their responsibilities as the main body of development, reform operation philosophy, attach more importance to technology, talent, and brand, and gain more profit through innovation.
"The domestic market is the greatest momentum that propels the growth of the industrial textile industry. The government's increased investment in infrastructure construction, environment improvement, and guaranteeing people's livelihood has created vast market space for the development of the industry". According to people from China Nonwoven & Industrial Textiles Association, the continuous growth of market demand will not only promote the rapid growths of production and sales of the industry, but also stimulate more industrial investment; it is estimated that investment activities will be more active than last year, although industrial investment tend to become higher-ended and more diversified. Main economic index of the industrial textiles industry, including annual output, output value, sales, and profit, will continue to grow at double digit.