After the golden development period from 2001 to 2008, the textile industry, which has been slowly recovering from the financial crisis, is now accelerating its recovery. At the same time, however, the polarization of the industry has also intensified. ROE improves refraction industry recovery According to the statistics of the Shanghai Securities Journal, the overall ROE (return on net assets) of the A-share textile and apparel industry in 2013 was 7.9%, an increase of 4.3 percentage points from 3.6% in the same period last year, and the ROE of the textile industry in the third quarter of last year Only a year-on-year increase of 1.32 percentage points. As an important financial indicator for judging the profitability of listed companies, the substantial increase in ROE may be a reflection of the acceleration of the textile industry. From the perspective of specific companies, the 2013 annual report of the world's largest yarn-dyed fabric production base and the leader of the dyed-spun fabric industry, Lu Thai A, showed that last year's operating income was 6.478 billion, a year-on-year increase of 9.78%; net profit was 990 million, a year-on-year increase of 41.17% . Lu Thai A said in its annual report that the increase in profitability was mainly due to the increase in the price of long staple cotton and the increase in export order prices, which caused the company's gross profit margin to increase by nearly 4 percentage points, of which the fourth quarter gross profit margin increased by 7.49 percentage points . It is no coincidence. Huafu Yarn Spinning, the leader of the dyed yarn enterprise, also performed very well last year, realizing operating income and net profit of 6.24 billion and 200 million, respectively, a year-on-year increase of 8.86% and 120.72%. The company stated that it mainly benefited from seizing market opportunities and launching new products that met market demands. "Since the second half of last year, the entire textile industry has indeed picked up, which is mainly reflected in home textiles, clothing, and fabric companies." Liu Shijie, chairman of the Shenzhen Textile Industry Association, told reporters that the industry's pick-up is mainly due to the obvious economic recovery in developed countries. Increasing demand for clothing, coupled with increased domestic sales promotion, product development progress, vigorous development of e-commerce, broadening sales channels, and internal cost control. The reporter combed and found that in addition to the above-mentioned companies, several companies such as Blum Oriental, Jialinjie, Jinlong, etc. all doubled their net profit last year, while Red Bean, Mengjie Home Textiles, Hailan Home, and Pathfinder were up year-on-year. Increased by 73.78%, 70.91%, 35.58%, 31.53%. At the recent survey meeting of the China Textile Industry Federation held in spring, the Cotton Research Group pointed out that through the investigation of Shandong, Henan, Hebei, Hubei, Chongqing and other places by the Federation since February, it was found that the overall operation of textile enterprises was stable Most companies have normal operating rates after the holiday, and orders are relatively abundant and growing steadily. Polarization has further intensified. However, behind the overall prosperity, it is difficult to hide the bitterness of some companies' difficult business operations. A listed company executive told reporters that from the perspective of the industrial chain, there is a relatively excess capacity in the upstream and midstream markets, which is mainly due to the rapid expansion of capacity in previous years. Looking at the overall situation of the industry, despite the steady growth of the industry as a whole, and the performance of leading listed companies has greatly increased, most SMEs are still struggling. The spring survey report from China's cotton textile industry also shows that due to the current cotton policy and the huge state reserves need to be digested year by year, as well as rising costs, taxes, and financial pressures, some companies have more difficult development, especially The living environment of some SMEs shows signs of further deterioration. At the same time, most powerful large companies are going out or planning to go abroad, investing in Southeast Asia, Africa, Australia, the United States and other places to build factories. "The 'going out' of China's cotton textile industry is driven by policies." Gao Yong, vice chairman of the China Cotton Textile Industry Association, said. "The industry has been in a weak recovery since 2008 and is still in an adjustment period. As the adjustment continues, the polarization of the industry will continue to intensify." Wang Qianjin, chief editor of First Textile Network, told reporters that the entire textile industry before 2008 It is basically in a state of full profit, and after this, industry differentiation began to appear. Wang Qianjin pointed out that the current situation of the textile industry is that, on the one hand, backbone enterprises that have unique competitive advantages in a certain field or aspect continue to have high performance; on the other hand, those "popular" textile enterprises, especially SMEs, Lack of competitiveness, lack of market pricing power, the operating conditions are getting worse. The report of "2014 Textile Industry Situation Analysis" pointed out that 2014 is a year worth looking forward to in the textile industry. From the perspective of the macroeconomic situation, it is more likely that the domestic macroeconomic environment will improve in 2014, and the textile industry will likely hover beyond the bottom and enter the growth stage. Under the circumstances that the overall international economic environment is not good, as long as environmental degradation does not occur The phenomenon may be considered good news. Therefore, strengthening the industrial structure adjustment, advancing the industry's transformation and upgrading, improving the industry's self-innovation ability and sustainable development are still the main themes of the textile industry in 2014. "The adjustment period of the textile industry will continue until 2015, after which the industry will enter the promotion period." Wang Qianjin said.