What is the impact of reducing the export tax rebate rate for fiberglass products?

On November 15, 2024, the Ministry of Finance and the State Administration of Taxation issued Announcement No. 15 of 2024, "Announcement on Adjusting Export Tax Rebate Policy". From December 1, 2024, the export tax rebate rate of some finished oils, photovoltaics, batteries, and some non-metallic mineral products will be reduced from 13% to 9%; the export tax rebate of aluminum, copper, and chemically modified animal, plant or microbial oils and fats will be cancelled. After verification, the export tax rebate rate of the company's fiberglass products will be reduced from the current 13% to 9%.
The reduction in the export tax rebate rate of fiberglass products will have a certain impact on the domestic export of the company's products, but the impact is limited. The proportion of the company's overseas sales in total sales is about 35%, of which the two major bases in Egypt and the United States can meet about 50% of the foreign demand market.
According to the company's domestic exports of more than 300 million US dollars in 2023, the impact on the total profit of the year is about 2.5%. As a global leader in the industry, the company has established two overseas production bases in Egypt and the United States. The new policy will further highlight the advantages of the company's overseas layout and market competitiveness. At the same time, the company will actively respond by continuously reducing production costs, optimizing product structure, adjusting product prices, and increasing the proportion of foreign supply, striving to minimize the adverse effects of the export tax rebate rate adjustment.