Textile Export Tax Rebate Adjustment Of Chemical Fiber Industry As A Whole

The export rebate rate of some textiles and clothing has been raised. The Ministry of Finance and the State Administration of Taxation announced that the export rebate rate of some textiles and clothing should be raised from 11% to 13%, and the export tax rebate rate of some bamboo products increased to 11%, and the new tax rebate rate has been implemented since August 1, 2008.

The chemical fiber industry is large and not strong enough to go out of the bottom. In 2007, the total capacity of China's chemical fiber industry reached 25 million 720 thousand tons, and its output reached 23 million 900 thousand tons. Its capacity and output exceeded 50% of the world's total.

Since the second half of 2007, the sales and profit margins of chemical fiber industry have declined significantly.

After the Canton Fair in 2008, the acceptance rate of textile industry decreased significantly, and the cold was pressing.

Sales statistics of chemical fiber industry in June showed that sales revenue increased by 2.6 percentage points over the same period last year, reaching 14.03%, the lowest in nearly 5 years.

The textile export tax rebate adjustment and the chemical fiber industry as a whole have been concerned with the cold wave of textile products since the second half of 2007. We believe that the main reason is that the demand for the textile products caused by the economic downturn in Europe and the United States is not strong, the appreciation of the Renminbi accelerates and the cost increases due to the increase in production factor prices, as well as the excessive expansion of homogeneous capacity expansion and the low product differential rate. The export tax rebate rate is not a major factor affecting exports.

The export tax rebate rate increased from 11% to 13%, although the pressure of export enterprises can be alleviated in the short term. However, because the upstream and downstream industries are equally difficult, they will be exploited at various levels, and the export enterprises' profits and export growth will be limited.

Raising the tax rebate rate will improve the export slowdown and profit decline of the entire textile industry. The chemical fiber industry as a whole will be exposed to the upstream industry, and the small and medium-sized enterprises with individual exports will benefit significantly.

The relevant listed companies believe that the export tax rebate adjustment will directly or indirectly benefit the chemical fiber industry listed companies, but will not make significant changes in the fundamentals of the industry.

We should still pay attention to the reasonable layout of the industrial chain, the good product structure and the high quality production company.