Hua Fu Color Spinning Received Notice Of Preferential Policy For Xinjiang Corps Cotton

The company received it in November 30, 2012.

The document of the Shihezi Municipal People's Government Office of the eight agricultural division of the Corps, the 2012 of the municipal government office (2012) 136, the notice on the implementation of the credit sale of cotton production by cotton producers in Zhejiang Province, and the Notice No. 137 of the general office of the Corps for the implementation of phased cotton yarn production subsidies.

No. 2012 Document No. 136 is clear.

The cotton purchased from the division's farms can be sold on credit for 2 months, and the closing date for credit sales is March 31, 2013.

The purchase of cotton that reaches the national standard for storing cotton can be sold to the cotton spinning enterprises of the same city at a price of 200 yuan per ton of cotton at the same grade price.

If one time payment is adopted, the cotton textile enterprises in the area will obtain

4/1000 discount allowance.

According to the document No. 2012 issued by Shi Shi, [137], the subsidy policy for cotton spinning enterprises in the teachers' district is implemented from October 1, 2012 to March 31, 2013. The subsidy standard is cotton yarn produced within the time limit of subsidies, which is subsidized by 600 yuan per ton.

In accordance with the provisions of the 137 document, the company will enjoy 16 thousand and 700 tons of yarn enjoying a preferential subsidy of 600 yuan per ton in the enjoyment of the factory's normal production and sales within the scope of this preferential policy in Xinjiang. The subsidy income is expected to be about 10 million yuan, including 5 million yuan in the fourth quarter and 5 million yuan in the first quarter of 2013.

The above subsidies are expected to have little impact on the 2012 annual performance.

In view of the provisions of the 136 document, because of the fluctuation of cotton prices and the uncertain trend of cotton price difference at home and abroad, the impact of this preferential policy on the profit of the company is still unpredictable.

The above preferential policies belong to the subsidy policy issued by the general office of the Xinjiang Corps. The company has not received the documents of Xinjiang local governments on such preferential policies for the time being. Investors should be advised to pay attention to investment risks.

Reference document

1, No. 2012 of the teacher's Office (2012) No. "notice on the implementation of credit sale for cotton production in cotton mill of the printing division" (Trial Implementation).

2. The notice of the general office of the forwarding Corps on the implementation of phased cotton yarn production subsidies No. 137, No. 2012, No.