Zhejiang Hailiang (002203.SZ): The company's copper tube exports are minimally affected by tax rebate adjustments and will enhance the company's overseas competitiveness.

Zhejiang Hailiang (002203.SZ) announced that on November 15, 2024, according to the announcement No. 15 of 2024 issued by the Ministry of Finance and the State Administration of Taxation "Announcement on Adjusting Export Tax Rebate Policy", starting from December 1, 2024, the export tax rebate rates for some finished oil products, photovoltaic products, batteries, and some non-metallic mineral products will be lowered from 13% to 9%; The export tax rebate for aluminum, copper, and chemically modified animal, plant, or microbial oils and fats will be cancelled. The adjustment of the export tax rebate policy, which cancels the export tax rebate for aluminum, copper, and other products, mainly affects the company's copper tube products for export. More than 90% of the company's exported products are processed through processing of imported materials, and the processing of imported materials is based on processing fees, so the impact of the adjustment in tax rebates is minimal. The company is one of the earliest enterprises in the industry to implement a global layout, with rich experience and operational capabilities in dealing with various trade and tax policy changes. After the new policy was implemented, the company actively adjusted its business strategy, with all products for export being processed with imported or domestically sourced materials starting from November 18, 2024. The competition of overseas copper tube products is essentially a competition among Chinese copper tube processing enterprises overseas. The company has 12 bases in 9 countries overseas, with production capacity far exceeding that of its peers. The company's overseas copper tube production capacity accounts for about two-thirds of Chinese enterprises' copper tube production capacity overseas, and the adjustment in tax rebates will significantly enhance the competitiveness of the company's products produced at overseas bases. The company's copper foil project in Indonesia is the only overseas project of domestic copper foil processing enterprises. It has completed trial production and will achieve mass production supply next year. The adjustment in tax rebates will greatly enhance the strategic position and competitiveness of the Indonesia copper foil base. The company will further accelerate the advancement of its overseas strategy: tapping into the production capacity of mature bases in Vietnam, Thailand, Germany, the United States, and other ten countries; while further accelerating the construction progress of the Morocco base's production capacity in order to quickly increase the overall overseas production capacity, and further enhance global competitiveness.