Clothing consumption has changed positively over 14 years. Clothing CPI has gradually picked up since October 14 and this year's value is around 3, indicating that clothing consumption is slowly picking up. From January to September, the total number of textile service companies increased by 10.2%, down 2 percentage points from the same period of the previous year. The growth rate of sales and sales volume of physical channels exceeded that of the same period of last year, and the sales of clothing in 100 key shopping malls showed a significant increase in price. In the third quarter of this year, the retail sales of various types of major retail enterprises in the country increased by 1.3% year-on-year, 0.4 percentage points lower than the same period of the previous year; the retail volume increased by 7.1% year-on-year, 8.7 percentage points higher than the same period of the previous year.

       The overall environment of the manufacturing industry is not optimistic, and orders have flowed out to Southeast Asia. The cost of labor and capital has become a major trend. China's foreign trade growth rate has not reached the set target for three consecutive years. Customs statistics show that the growth rate of overall textile export value has been declining since 2010, making the textile industry's orders that are more dependent on foreign trade shrink. According to China Customs data, the total export volume of domestic textiles and clothing increased by 4.8% from January to September this year compared with the same period last year.

       According to statistics from the third quarterly report, the performance of listed companies in the textile and apparel sector has improved. In the first three quarters of the year, the revenue of listed companies in the textile and apparel sector increased by 4.93%, and the net profit increased by 12.17%. The growth rate increased by 7.25 percentage points and 14.22 percentage points respectively compared with the same period of last year. The year-on-year improvement in performance was mainly due to multiple factors such as consumer bottoming, manufacturing cost reduction, and stock market improvement.

       The gross profit margin of the apparel sub-sector led the gains, and the textile sub-sector fluctuated significantly. The average gross profit margin and net profit margin of listed companies increased slightly compared with the same period of last year, which was 25.96% and 7.88%. The gross profit margin and net profit margin of the textile sub-sector are still fluctuating within a certain range, which is in line with the actual situation of mature industries. In the first three quarters of the textile manufacturing sub-sector, the gross profit margin was 16.41%, and the net profit margin was 5.44%, a slight change of -0.05 and 0.11 percentage points from the same period last year. The gross profit margin and net profit margin of the clothing home textile segment from January to September were 33.65% and 9.83%, respectively, which was 2.57 percentage points higher than the same period of last year and 1.04 percentage points. However, the future of clothing retailing will inevitably need to reduce the fare increase rate. In the long run, the gross profit margin of the industry is under pressure.

       In the balance sheet of the third quarterly report, the inventory turnover rate and the receivables turnover rate of the textile and garment industry deteriorated, and different sub-sectors differentiated. At the end of the period, the inventory amount increased by 4.87%, the growth rate decreased by 1.61 percentage points compared with the same period of last year; the inventory turnover rate was 1.73 times, which was basically the same as 1.76 times in the same period of last year. Accounts receivable increased by 20.1%, 20.72 percentage points higher than the middle of last year; accounts receivable turnover rate was 5.74 times, and 6.31 times at the end of the same period last year.

       The decline in the textile sub-sector was more obvious. The inventory turnover rate and accounts receivable turnover rate at the end of the third quarter were 2.06 and 6.07 respectively, a decrease of 0.06 and 0.89 times compared with the same period of last year.

       The overall quality of the clothing sub-sector balance sheet has improved. The inventory turnover rate was 1.56, a slight improvement from 1.49 in the same period last year.

       Operating net cash flow has deteriorated compared to last year. The net cash flow from operations was 30 million yuan, 0.07 billion yuan and -0.05 billion yuan respectively, an increase of $23 million, a decrease of $33 million and a decrease of $42 million over the same period last year. The difference between net cash flow from operating income and net profit is negative.

       Key consumer stocks and net profit increased by 18.1% and 13%, an increase of 13 percentage points and 12 percentage points over 14 years. After removing the sea otters with larger weights, the growth rate was 12.64% and -1.46%, respectively, which was still a large increase compared with the same period of last year. At the end of the period, the inventory turnover rate was 1.23 times, and the accounts receivable turnover rate was 5.98 times, which was improved compared with the same period of last year. After the sea otter is removed, the upward trend of inventory and accounts receivable turnover rate remains unchanged. Operating net cash flow in the third quarter - 0.33 billion yuan, significantly lower than the same period last year.