60%, Companies Can'T Afford To Lay Off Listed Companies.

With the rise of China's cost, the small profit textile industry has been seriously affected.

In fact, not only a large number of small textile enterprises are disappearing, but even large textile enterprises listed on A shares are also suffering from the decline of profits or even losses.

According to CCTV, recently

There are 9 enterprises in Feng Qiao Town, Zhuji, which are closed down, and 7 of them are textile and garment enterprises.

At present, the garment factories in Maple Town of Zhuji have been reduced from more than 50 to more than 30, and the textile and garment enterprises in Zhuji have been reduced from more than 650 at most to 200-300 at present.

The number of textile enterprises has decreased by more than 50%.

The situation in the country is not optimistic.

According to the National Bureau of statistics, as of June 2016, the number of textile enterprises in China with more than 20 million yuan in revenue was 19937, compared with the number of 22484 textile enterprises in 2011, which was reduced by 2547.

The more than 2000 textile enterprises disappeared, the statistical data is only reflected in the change of data, and how much blood and tears are there behind the disappearance?

And even if the enterprises have not disappeared, their production business has been changing, and a large number of textile enterprises are turning production to overseas.

Such large textile enterprises as Lu Tai A and Bailong East have already set up factories overseas, and some factories in China have been discontinued.

Baron East started construction in Vietnam in early 2013. In just three years, the production capacity of Vietnam's spindles accounts for 40% of the total capacity of the company.

In the background of profit falling or even losing, the textile industry, as a typical representative of labor-intensive industries, has opened up a layoff mode.

According to statistics, in 2015

Of the 36 textile enterprises listed, 21 were laying off workers, accounting for nearly 60% of layoffs, and such a wave of layoffs began in 2013.

According to Wind data, in the 36 textile enterprises listed on A shares, 10 were in a loss in the first half of the year, with a loss ratio of more than 25%, while in 2010 only 1 textile enterprises lost money.

In the first half of 2016, the net profit of listed textile enterprises also continued to decline in the first three years, and net profit dropped more than 10% over the same period last year.