Export Rebate Change Helps Textile Players      

China raises export rebates for textiles and clothes and eliminates export rebates for products with high energy consumption, high pollution and resource nature, effective August 1st, 2008. (CCR2008 No. 23)
   Jiangsu Sunshine Group Co., Ltd. (SH: 600220), a leading textile and clothe producer in China, announced on August 5th that the increase of export rebates for textiles and clothes will add the afore-tax profit of around RMB6.0 million for the company in the second half of 2008, if the exports for H2 are equal to that in H1.
   Nanjing Textile Imp/Exp Corp. Ltd. (SH: 600250) reports the increase of export rebates for textiles and clothes will ease pressure on the exports of textiles and clothes to a certain extent. Due to the RMB appreciation with respect to US dollar and the drastic rise of raw material and labor cost, however, the change of export rebates this time will have no impact on its performance for 2008.
   Zhejiang Furun Co., Ltd. (SH: 600070) and Wuxi Taiji Industry Co., Ltd. (SH: 600667) announce that as the exports of textiles are quite small, the change of export rebates will have no major impact on their operating performance in the second half of 2008 and in future.
   Jiangsu Sainty International Group Corp. Ltd. (SH: 600287) discloses that as the company is engaged in the exports of clothes, the increase of export rebates for clothes and textiles will raise the profit-earning ability in purchase orders. Due to the fierce competition in the clothe export, however, the increase of export rebates will have no great impact on its performance.
   Hunan Haili Chemical Co., Ltd. (SH: 600731), a pesticide maker in China, has also announced that carbofuran and methomyl produced by it are involved in the list of commodities for the elimination of export rebates. The total export value in the company was around RMB199 million from January to June 2008. The export value of these two products was around RMB57.689 million. The elimination of export rebates for these two products will have a negative impact on the operating performance in the second half of 2008.
   Hubei Sanonda Co., Ltd. (SZ: 000553), an agrochemical producer in China, has announced that the elimination of export rebates for partial pesticide products will have no impact on its performance in the second half of 2008 because of the small export amount and contracts signed before August 1st, 2008.