Fuel ethanol subsidies to eliminate Cofco's biochemical performance or shrink by tens of millions in 2016

today, Cofco Biochemicals announced that the company obtained the Ministry of Finance issued "on the adjustment of fixed-point enterprises biofuel ethanol fiscal policy notice" (hereinafter referred to as "notice"), said that biofuel ethanol fixed-point enterprises financial assistance policy adjustment: 2013-2015, the central government approved projects to food Biofuel ethanol for raw materials continues to be subsidized by 300 yuan/tonne in 2013, 200 yuan/tonne in 2014, 100 yuan/tonne in 2015, and no more subsidies after 2016JTz
Subsidies are declining year by year
JTzCofco Biochemical saester said that the company is a biofuel ethanol fixed-point enterprise, will be in accordance with the policy to implement the above-mentioned subsidy standardsJTz
In order to solve the problem of aged grain, the state approved during the "Fifth Five-Year Plan" to build four pilot projects for fuel ethanol production, including Cofco Biochemicals, which can receive high subsidies for the production of fuel ethanolIn 2009, the standard of biofuel ethanol elasticity subsidy for fixed-point enterprises in Anhui Province was 2,055 yuan/tonne, compared with 1659 yuan/tonne in 2010JTz
In recent years, in the context of the central emphasis on food security, policies have begun to comprehensively limit the large-scale promotion of biofuels, especially corn ethanol, subsidies have been reduced, and subsidies for biofuel ethanol companies have become less and lessJTz
At the beginning of 2012, the Ministry of Finance issued a notice that the 2012 biofuel ethanol financial subsidy standard is as follows: food-based fuel ethanol, the subsidy standard is 500 yuan / ton, and the fuel ethanol from non-food crops such as cassava, the subsidy standard is 750 yuan / tonCOFCO Biochemicals announced that, in accordance with the provisions of the Ministry of Finance, COFCO's 2012 fuel ethanol subsidy standard based on corn was 500 yuan/tonne, down 776 yuan/tonne from the 2011 average of 1276 yuan/tonne JTz
　　At the same time, from January 1, 2015, the state will eliminate the vat-based tax on the fixed-point production of variable fuel ethanol, while the production of food-based denatured fuel ethanol for the deployment of ethanol gasoline for vehicles will also resume a 5% consumption tax JTz
　　Performance continued to decline
JTz the decline in financial subsidies, directly affect the performance of Cofco Biochemical, the company's profits in the past three years continued to decline In 2012, COFCO's net profit was RMB182.98 million, down 48.5% from 2011, and its 2013 net profit was RMB50.71 million, down 72.3% from 2012 JTz
　　In the first quarter of this year, the company achieved operating income of RMB1.774 billion, down 8% YoY, and net profit of RMB17.19 million in the first quarter, down 40.8% from the same period last year, and earnings per share of RMB0.018, according to Cofco's quarterly report The report said that due to the decline in the current fuel ethanol quota subsidy standard, the company's non-operating income declined significantly, and the current period forward foreign exchange contract delivery and exchange rate changes led to fair value change income from positive to negative year-on-year, affecting performance JTz
　　COFCO's 2013 annual report disclosed that non-operating income fell by 44.92 percent, mainly due to the decline in the standard of fixed subsidies for fuel ethanol and the reduction of the proportion of vat rebates, during which government subsidies amounted to 198 million yuan and the amount of government subsidies in the previous period was 365 million yuan COFCO said that fuel ethanol products were affected by the subsidy policy and the adjustment of consumption tax and value-added tax policies, and the profitability declined JTz
　　With the gradual elimination of government subsidies, it is expected to continue to affect the annual profits of cofco bio-chemical tens of millions of dollars JTz today, Cofco Biochemicals announced that the company obtained the Ministry of Finance issued the "Notice on the adjustment of the fixed-point enterprise biofuel ethanol fiscal policy" (hereinafter referred to as "Notice"), said that biofuel ethanol fixed-point enterprise sedituary financial assistance policy adjustment: 2013-2015, the central government approved projects to Biofuel ethanol, which is the raw material for food, continues to be subsidized by 300 yuan/tonne in 2013, 200 yuan/tonne in 2014, 100 yuan/tonne in 2015, and no more subsidies after 2016 JTz
　　Subsidies are declining year by year
JTz Cofco Biochemical saester said that the company is a biofuel ethanol fixed-point enterprise, will be in accordance with the policy to implement the above-mentioned subsidy standards JTz
　　In order to solve the problem of aged grain, the state approved during the "Fifth Five-Year Plan" to build four pilot projects for fuel ethanol production, including Cofco Biochemicals, which can receive high subsidies for the production of fuel ethanol In 2009, the standard of biofuel ethanol elasticity subsidy for fixed-point enterprises in Anhui Province was 2,055 yuan/tonne, compared with 1659 yuan/tonne in 2010 JTz
　　In recent years, in the context of the central emphasis on food security, policies have begun to comprehensively limit the large-scale promotion of biofuels, especially corn ethanol, subsidies have been reduced, and subsidies for biofuel ethanol companies have become less and less JTz
　　At the beginning of 2012, the Ministry of Finance issued a notice that the 2012 biofuel ethanol financial subsidy standard is as follows: food-based fuel ethanol, the subsidy standard is 500 yuan / ton, and the fuel ethanol from non-food crops such as cassava, the subsidy standard is 750 yuan / ton COFCO Biochemicals announced that, in accordance with the provisions of the Ministry of Finance, COFCO's 2012 fuel ethanol subsidy standard based on corn was 500 yuan/tonne, down 776 yuan/tonne from the 2011 average of 1276 yuan/tonne JTz
　　At the same time, from January 1, 2015, the state will eliminate the vat-based tax on the fixed-point production of variable fuel ethanol, while the production of food-based denatured fuel ethanol for the deployment of ethanol gasoline for vehicles will also resume a 5% consumption tax JTz
　　Performance continued to decline
JTz the decline in financial subsidies, directly affect the performance of Cofco Biochemical, the company's profits in the past three years continued to decline In 2012, COFCO's net profit was RMB182.98 million, down 48.5% from 2011, and its 2013 net profit was RMB50.71 million, down 72.3% from 2012 JTz
　　In the first quarter of this year, the company achieved operating income of RMB1.774 billion, down 8% YoY, and net profit of RMB17.19 million in the first quarter, down 40.8% from the same period last year, and earnings per share of RMB0.018, according to Cofco's quarterly report The report said that due to the decline in the current fuel ethanol quota subsidy standard, the company's non-operating income declined significantly, and the current period forward foreign exchange contract delivery and exchange rate changes led to fair value change income from positive to negative year-on-year, affecting performance JTz
　　COFCO's 2013 annual report disclosed that non-operating income fell by 44.92 percent, mainly due to the decline in the standard of fixed subsidies for fuel ethanol and the reduction of the proportion of vat rebates, during which government subsidies amounted to 198 million yuan and the amount of government subsidies in the previous period was 365 million yuan COFCO said that fuel ethanol products were affected by the subsidy policy and the adjustment of consumption tax and value-added tax policies, and the profitability declined JTz
　　With the gradual elimination of government subsidies, it is expected to continue to affect the annual profits of cofco bio-chemical tens of millions of dollars JTz
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