Textile and garment export tax rebate rate to 2% of the “rescue of the policy” has been implemented for a month, but for many operators, that the extension of the problem remains – “Spring in Where?”
“As the yuan’s continuous appreciation and domestic costs rising by two percentage points of the tax rebate can only be slightly strengthened a little business confidence.” Shanghai, a textile trading company official said.
Another study pointed out that the move was purely “industrial upgrading and the trend in delaying tactic,” a number of small and medium enterprises have been from out of the brink of pulling back, is not conducive to superior enterprises bigger and stronger.
“For industry, a substantial little impact on the capital market on the textile and apparel section, but also have little effect.” The source told reporters.
In appreciation of the renminbi to this important influences, agencies are on the textile and apparel plate optional Unit thought have emerged re-Numbers “(in domestic-based brand enterprises)” light “foreign (export oriented)” trend.
Tax impact of micro -
And from each listed company gradually disclosure notice can also be Glimpse of the policy influence.
Is considered the biggest benefit from Lutai A notice said, “according to corporate finance departments according to the 2008 8-12 months of import and export plans to estimates, will increase the company’s current total profit of approximately 21.08 million yuan.”
In addition, Vosges stake in the semi-annual benefit of about 15 million gold feeder gain also 4000000-5000000 between.
However, Fujian Southern spinning, China l shares, Jiangsu Kaiyuan and a number of listed companies are notice, a tax rebate adjustment of impact is negligible. To include the Youngor, seven wolves to domestic-based brand clothing enterprises, then basically not affected.
CITIC Construction Investment research report estimates that this adjustment will increase the textile industry, a total profit of 2.6 billion U.S. dollars, according to one U.S. dollar 6.82 yuan’s exchange rate basis, corporate profits will increase by about 17.7 billion yuan.
However, as textile and garment enterprises dispersion is relatively high, such a large amount of scattered into a single listed company level, then the impact is hardly evident. And relevant sector index, but also did not greatly encouraged.
Great wisdom provided by the textile and apparel sector index showed that August 1 date, the index of the cumulative decline of 22.6% compared with the broader market decline of 16.96%.
According to the China International Capital Corporation released a research report, from a historical point of view, the export tax rebate rate adjustment with the plates indices correlation is not high.
However, institutional investors in the textile and apparel plate positions the proportion has increased, from early August to 2.4% of increase to the current 2.7%.
In appreciation of the renminbi and foreign demand weakened background, hopes the export tax rebate reversal of the industry situation, a few is not possible.
“When compared with the export tax rebate, the yuan revaluation to bring our impact is much greater.” Lutai A securities on behalf of Zheng and India told reporters.
In the first half yuan cumulative appreciation rate of 6.5%, the simple to Lutai A first half of the exports 210 million U.S. dollars terms, if you do not take hedging and other hedging instruments, their exchange losses will be more than 80 million yuan.
However, as the company’s hedging business use and properly first half of 2008 the formation of exchange revenue 99.9 million yuan, completely covers the yuan appreciation pressure, and even a slight surplus. In this connection, Lutai A, finance charges over the previous year fell 68.88%.
Related Tax Rebate Articles