Statistics released by China´s National Bureau of Statistics indicated that cotton textile industry hailed rapid development in January and February of 2010. Export upturned notably, investment inclination rose rapidly and the whole industry benefit also witnessed substantial growth. According to an investigation recently carried out by China Cotton Textile Association toward cotton textile entrepreneurs, many are holding positive attitude toward the economic conditions of the first half year, but are also disturbed by the possible yuan appreciation and the material price upsurge in the second half year.

Main business revenue of above-scale cotton and chemical fiber processing companies for the first two months of 2010 reached 149.639 billion yuan, rose by 29.63% year-on-year. Accumulated yarn output of above-scale companies reached 3.5822 million tons, rose by 26.52%; fabric output of above-scale companies reached 10.082 billion meters, rose by 50.98%. Exported value of cotton textiles and cotton-made garments reached $11.59 billion, rose by 24.31%.

Yarns and Fabrics Output Recovered Increasing Momentum
Many textile companies received adequate orders since after the year beginning which stimulated the growth of both yarns and fabrics (Figure 1). In the meantime, yarn prices are pushed upward by the material price upsurge causing inadequate supply of cotton yarns, which led to notable growth of cotton yarns. Moreover, many cotton textile companies accelerated the technology upgrade progress by introducing advanced equipments during this special period. Many new equipments were put into production which also enhanced the yarn output of the first two months.

Fig.1 Yarn Output Growth of January and February: 2006 to 2010

The six provinces, Shandong, Jiangsu, Henan, Zhejiang, Fujian and Hubei accounted for as much as 80% of national yarn and fabric output. The overall yarn output growth of Henan has topped all other provinces with 153.9 thousand tons of increase which took up 1/5 of national yarn output growth. Fabrics output growth of Zhejiang and Hebei were the fastest. Zhejiang accounted for 60.44% of national fabric output increase which rose 2.058 billion meters as compared with last year.

Export Warmed up
Of the first two months, exported cotton textiles and cotton-made garments reached $11.159 billion, rose by 24.31%, in which cotton textiles export was $2.846 billion, rose by 23.39% and cotton-made garments export was $8.313 billion dollars, rose by 24.63%.

Fig.2 Cotton Textiles and Cotton-made Garments of January and February: 2006 to 2010

Profit has Seen Substantial Increase
Main business revenue of above-scale cotton and chemical fiber textile processing companies for the first two months of 2010 reached 149.639 billion yuan. Total profit reached 16.244 billion yuan, rose by 53.98%. About 15.86% of the companies were facing loss, proportionally down by 5.27 percentage points and the deficit declined 38.46% as compared with last year. By contrast, profited companies hailed 62.33% of increase which reversed the negative-growth situation of last year. Besides, compared with the same period of last year when many companies facing financial deficiency, the inventory rose by 16.09% when the market indicated positive tendency and the marketing and production ratio rose all the way up.

Conclusions drawn from Table 1 are that: for above-scale cotton and chemical fiber textile processing companies, the revenue growth from export transaction in 2010 surpassed the revenue growth from the main business. Meanwhile, the overall profit revenue and the profit margin were both doubled as compared with the same period of precedent years. On the one hand, productivity was strengthened throughout constant elimination of outdated capacities and equipment upgrade. On the other hand, the profit from non-operating activities still took up a large proportion which to a certain extent braced up the overall profit revenue. As compared with the same period of 2008, three indicators all increased variably apart from export value.

Investment Indicated Quick Upsurge
Overall fixed asset investment of cotton and chemical fiber textile processing programs for the first two months of 2010 totaled 5.288 billion yuan, rose by 30.95% from the precedent year a