Home / Business / Textile Tools: Save | Print | E-mail | Most Read | Comment
Textile industry gains slim profits
Adjust font size:

China's export-oriented textile industry is suffering from low profit margins amid yuan appreciation, China National Textile and Apparel Council (CNTAC) said.

According to CNTAC's latest industry survey, profit margins averaged at 3.9 percent among textile companies last year. Two thirds of the companies surveyed reported an average profit margins of 0.62 percent.

The survey, conducted by CNTAC in early March covered textile companies in six provinces including Jiangsu, Zhejiang and Guangdong, which accounted for 85 percent of China's textile exports.

Small and medium-sized companies suffered the most, with some on the brink of break down, said Sun Huaibin, a CNTAC spokesman.

Industry experts said the appreciation of Chinese currency and rising costs in both raw materials and labors have squeezed the profit margins.

Fujian Nanfang Co, a state-controlled textile firm in southeastern Fujian Province reported 9.53 million yuan ($1.36 million) loss in net profit, according to its 2007 annual report released on Wednesday.

According to an estimate by webtextile.com, every rise of one percent in the yuan would cause a 2 to 6 percent drop in textile commodity profit.

The Chinese currency, yuan, has risen about 4 percent against the dollar so far this year, breaking the 7.03 mark against the dollar on Wednesday.

Meanwhile, demand remained lukewarm largely because of weakening US and European demand and the severe winter storms.

Customer statistics showed that China's textile and garment exports in February dropped 32.9 percent from the previous month.

(Xinhua News Agency March 28, 2008)

Tools: Save | Print | E-mail | Most Read
Pet Name
China Archives
Related >>
- Textile exporters trim costs to maintain edge
- Textile exports fall in February
- Textile sector looms large by weaving big recovery
- Chinese textile giant acquires US garment firm
- China may lose edge in global textile business
- Textile, apparel exports up rapidly from Jan to Oct 2007
- Textile industrial output to rise 22% in 2007
- Textile monitoring system operational
- Chinese textile industry says no to low-price purchases
Most Viewed >>
- Experts say steel prices to stay high this year
- Wen pledges efforts to stabilize stock market
- Funds see profits surge on stock investment last year
- World coke price to stay high this year: CCIA
- Local banks told to put brakes on mortgages

April 11-13 Boao Forum for Asia

May 15-17 Shanghai Women's Forum Asia

Dec. 12-13 Beijing
China-US Strategic Economic Dialogue

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?