ShareJunction

Joined: 28 Aug 2005 Posts: 1499

Read the following news release from sina.com:- it says that chinese government will not approve any project for using corn to producing
ethanol, so China Sun plan to producing ethanol is gone.

我国将停止在建煤化工和粮食乙醇燃料项目http://www.sina.com.cn 2007年06月10日02:54 新京报
　　本报讯 (记者王冰凝) 昨日，在?中国生物燃料乙醇产业化发展战略研讨会?上，记者从一政府官员处获悉裨?月7日召开关于可再生能源的会议，中国将停止在建的煤化工项目和粮食乙醇燃料项目，在不得占用耕地，不得消耗粮食，不得破坏生态环境的原则下，坚持发展非粮燃料乙醇。

　　粮食乙醇存在与人争粮问题

　　1999年，吉林燃料乙醇有限公司、黑龙江华润酒精有限公司、河南天冠燃料集团和安徽丰原燃料酒精股份有限公司成为国家首批燃料乙醇定点生产企业。至2005年底，这4家企业规划建设的102万吨燃料乙醇产能全部达产。国务院这一新政策一旦出台，意味着这些企业的在建项目将成为政府限制类，而其他新建项目将均被叫停。

　　该官员指出，除了上述四家用粮食生产乙醇以外，政府将不得再批准新建项目。而现有的四家，政府也将下发文件强调其逐步转入非粮替代能源。

　　该官员表示，以玉米为主的粮食乙醇存在与人争粮问题，在非粮乙醇汽油技术攻克前，9省的试点范围短期不会扩大，试点仍会进行。政府还将在河南南阳进行一个新的试点，推广高参比和灵活燃料汽车。

　　煤变油为不可持续发展项目

　　神华集团耗资100亿元在内蒙古鄂尔多斯生产的煤直接液化项目(即煤变油)，将于今年内投产，第一期可以生产108万吨油当量。该官员表示，煤制油项目首先耗资巨大，其次成本很高，尤其很耗水，而鄂尔多斯本身就很缺水。煤作为化工能源，本身是不可再生的，其制油的工艺是一种全生命的能量消耗，以更多的能源换取更少的能源，这种不计成本的发展很不划算，不适合大规模的商业化，也是不可持续发展。该官员还认为，从技术上说，目前还尚有很多没有攻克的难点，以神华的煤制油项目为例，耗资100多个亿，但其生命周期却遥遥无期。

　　据透露，中国会坚持发展非粮乙醇燃料。

Joined: 14 Aug 2006 Posts: 169

Finally... They have finally made things clear....
That is a good news to me. At least investor can forget about the
ethanol thing and focus on the real growth on China Sun....

People used to make speculation about ethanol and china sun and use
it as an excuse to wack down the price. Now they have no more excuse
to use this stupid ethanol issue to anyhow wack down china sun.

Of coz after this news is release, china sun may face some downward
pressure. But if you take a deep look into its financial statments and
their businesses, it is actually a good stocks to hold.

When people forget about the whole darn ethanol thing, china sun
will shine again. Surprised

Joined: 12 Feb 2006 Posts: 341

I believe the current price has already factored in the fact that they will not get the license. In fact, i heard this news long ago.

China Sun's ethanol plant has already begun production for non fuel ethanol products in May 2007 to meet demand.

Joined: 14 Aug 2006 Posts: 169

Yes. Agreed. The factory that was built for ethanol is not wasted.
It can be, and is currently, used to produce non fuel ethanol items.

But making this announcement actually clear the air on whether they
will get the license or not. This is too it's advantage as people
will not speculate on this stock due to the ethanol thing hanging around.

As I had always said, the new plant and the new sweetener business
will bring more revenue to the businesses. Even though corn price has
been increasing, they are able to pass the cost increase to the customers.
Anyway, who expect the finished goods price to stay the same when
the raw material price has increased?

We need to give it time, probably another 1 year, to see its real potential.

Joined: 20 May 2005 Posts: 6441

Wow, going strong ..steady steady pun pi pi

Very Happy

Joined: 11 Jun 2007 Posts: 1

you know what has been worrying me about ChinaSun ?
... rise of corn prices might affect EBIT, higher prices have partly been compensated by higher selling price.
just think about falling corn prices Cool

I know why the share is not dropping...

Joined: 20 May 2005 Posts: 6441

Joined: 08 Feb 2007 Posts: 1775

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