> The reporting on this issue has been sparse, but here's a piece I dug
> up in the original reports that may be of interest (I tracked this
> down after allusions in other discussions to the fact that the
> dispute
> was taken directly to China's central government)...
> "Gushan expressed its view to the State Administration of Taxation of
> Fujian Province ("Fujian SAT") that its biodiesel, which is produced
> from used cooking oil, vegetable oil offal and jatropha oil, should
> not be subject to such consumption tax. Gushan was subsequently
> informed that Fujian SAT and the Fujian Municipal Finance Bureau
> jointly issued a written proposal to the PRC State Administration of
> Taxation ("PRC SAT") requesting that biodiesel products without
> petroleum-based diesel content be specifically excluded from paying
> consumption tax. As of the date of this announcement, the PRC SAT has
> not yet replied to this proposal."
> I wasn't aware that even the local taxing authority was in favor of
> the exemption.  That's hopeful news - I had been under the impression
> that Gushan and the Fujian province government were squaring off over
> this.
> China's State Council, or Cabinet, said its plan to slow its rate of
> carbon emissions would come through better research and development,
> clean coal technology, advanced nuclear energy and better
> transportation systems. Tax laws and regulations will also be changed
> to encourage energy efficiency.

> "There are two things China will have to do to achieve this. One is to
> drastically improve energy efficiency, to use energy in a smart way.
> Second is to massively develop renewable energies," said Yang Ailun,
> climate campaign manager for Greenpeace China.

>  
> Tax resolution is coming soon!! I can smell it !!Lol!

> On Dec 1, 12:55 am, muscle guys <ericmus...@hotmail.com> wrote:

> > Good News , large cash per shares .  Current quarter should be much
> > better than last quarter since oil is up from its lows. There is a tax
> > problem that is keeping the company down for now (whether biofuel
> > should be taxed like normal fuel), but I believe it will be resolved
> > in the favor of [Gushan]. Even if it is not in the favor of [Gushan],
> > valuation alone should give [Gushan] limited downside as it is trading
> > around liquidation value (  book value is based on the cost of assets
> > and  It's around 1.25$/shares)

> > The balance sheet is rock solid ... The company is waiting on a ruling
> > as to whether the Chinese consumption tax applies to the product of
> > one of its plants. If I were a Chinese official, I certainly would
> > support alternative energy - considering commodities inflation is the
> > leading threat to China's longterm growth prospects. Accordingly, I
> > suspect that this company is in favor with the Chinese government.
> > Last, but not least, I suspect this company's fortunes will wax and
> > want with: (1) the Chinese market and (2) oil prices. I personally
> > expect China to hold up better than the US stock market and I expect
> > oil prices to remain fairly strong.

> > On Nov 28, 9:42 pm, bonjovi <bonjovi...@gmail.com> wrote:

> > > Does anybody know if any more meetings are scheduled to work out the
> > > tax problems and does anyone have a time frame as to when any of this
> > > could happen. I have a lot of money invested at $2.35 per share and
> > > have taken quite a beaten and need so good advice from anyone with
> > > knowledge on this subject. Thanks

> > > On Nov 28, 3:02 am, muscle guys <ericmus...@hotmail.com> wrote:

> > > > According to the NBSC, there are signs that the stimulus measures are
> > > > already making a positive impact on the economy: the growth of energy
> > > > supply and consumption picked up in the first quarter of 2009, along
> > > > with a better-than-expected real GDP growth of 6.1% year-on-year,
> > > > reflecting a sharp sequential rebound in economic activity.
> > > > Although the global financial crisis will continue to impact the PRC
> > > > economy, the government is putting in place measures to help it
> > > > sustain positive growth in 2009.  China, having the third largest
> > > > economy in the world after the United States and Japan, is expected to
> > > > maintain solid and stable growth in the long-run.
> > > > On Nov 28, 3:56 am, muscle guys <ericmus...@hotmail.com> wrote:

> > > > > Corporate Overview

> > > > > We are a leading producer of biodiesel and related products in China.
> > > > > We were founded in 2001 and listed on the NYSE in 2007.Our stock code
> > > > > is "GU".
> > > > > Currently, we have an aggregate annual production capacity of 290,000
> > > > > tons of biodiesel. As a pioneer of the biodiesel manufacturing sector
> > > > > in the country, we intend to promote biodiesel as one of the best
> > > > > solutions for China’s energy needs by producing quality and
> > > > > environmentally friendly biodiesel at competitive cost.

> > > > > Due to the continuous expansion of the Chinese economy and
> > > > > corresponding increasing demand for energy, we expect the Chinese
> > > > > economy to source a greater proportion of its energy needs from
> > > > > alternatives to petroleum-based diesel which are non-renewable. We
> > > > > believe that biodiesel will capture an increasingly larger share of
> > > > > China’s energy demand as environmental awareness increases in China
> > > > > and more efficient energy sources are sought. Traditionally, petroleum-
> > > > > based diesel has been the major source of energy supply. However, we
> > > > > believe our products can capitalize on the rising demand for energy
> > > > > and the increasing popularity of environmentally friendly energy.
> > > > > Our products are biodiesel and chemical by-products of biodiesel
> > > > > including glycerine and refined glycerine, plant asphalt, erucic acid,
> > > > > erucic amide and stearic acid. Our biodiesel is primarily used by our
> > > > > customers as an energy source and also in conjunction with
> > > > > conventional petroleum-based diesel, while our by-products of
> > > > > biodiesel have a wide range of applications. Our production facilities
> > > > > are located in Beijing, Shanghai, Mianyang in Sichuan province, Handan
> > > > > in Hebei province and Fuzhou in Fujian province, serving the northern,
> > > > > eastern interior and southeastern regions of China respectively. We
> > > > > target to increase our annual production capacity to 400,000 tons by
> > > > > the end of 2008 with the expansion or addition of new production
> > > > > facilities in Beijing,Shanghai, Hunan and Chongqing.
> > > > > We intend to maintain our leading position in the biodiesel industry
> > > > > in China and become a major producer of quality and cost effective
> > > > > alternative energy products.

> Good News , large cash per shares .  Current quarter should be much
> better than last quarter since oil is up from its lows. There is a tax
> problem that is keeping the company down for now (whether biofuel
> should be taxed like normal fuel), but I believe it will be resolved
> in the favor of [Gushan]. Even if it is not in the favor of [Gushan],
> valuation alone should give [Gushan] limited downside as it is trading
> around liquidation value (  book value is based on the cost of assets
> and  It's around 1.25$/shares)

> The balance sheet is rock solid ... The company is waiting on a ruling
> as to whether the Chinese consumption tax applies to the product of
> one of its plants. If I were a Chinese official, I certainly would
> support alternative energy - considering commodities inflation is the
> leading threat to China's longterm growth prospects. Accordingly, I
> suspect that this company is in favor with the Chinese government.
> Last, but not least, I suspect this company's fortunes will wax and
> want with: (1) the Chinese market and (2) oil prices. I personally
> expect China to hold up better than the US stock market and I expect
> oil prices to remain fairly strong.

> On Nov 28, 9:42 pm, bonjovi <bonjovi...@gmail.com> wrote:

> > Does anybody know if any more meetings are scheduled to work out the
> > tax problems and does anyone have a time frame as to when any of this
> > could happen. I have a lot of money invested at $2.35 per share and
> > have taken quite a beaten and need so good advice from anyone with
> > knowledge on this subject. Thanks

> > On Nov 28, 3:02 am, muscle guys <ericmus...@hotmail.com> wrote:

> > > According to the NBSC, there are signs that the stimulus measures are
> > > already making a positive impact on the economy: the growth of energy
> > > supply and consumption picked up in the first quarter of 2009, along
> > > with a better-than-expected real GDP growth of 6.1% year-on-year,
> > > reflecting a sharp sequential rebound in economic activity.
> > > Although the global financial crisis will continue to impact the PRC
> > > economy, the government is putting in place measures to help it
> > > sustain positive growth in 2009.  China, having the third largest
> > > economy in the world after the United States and Japan, is expected to
> > > maintain solid and stable growth in the long-run.
> > > On Nov 28, 3:56 am, muscle guys <ericmus...@hotmail.com> wrote:

> > > > Corporate Overview

> > > > We are a leading producer of biodiesel and related products in China.
> > > > We were founded in 2001 and listed on the NYSE in 2007.Our stock code
> > > > is "GU".
> > > > Currently, we have an aggregate annual production capacity of 290,000
> > > > tons of biodiesel. As a pioneer of the biodiesel manufacturing sector
> > > > in the country, we intend to promote biodiesel as one of the best
> > > > solutions for China’s energy needs by producing quality and
> > > > environmentally friendly biodiesel at competitive cost.

> > > > Due to the continuous expansion of the Chinese economy and
> > > > corresponding increasing demand for energy, we expect the Chinese
> > > > economy to source a greater proportion of its energy needs from
> > > > alternatives to petroleum-based diesel which are non-renewable. We
> > > > believe that biodiesel will capture an increasingly larger share of
> > > > China’s energy demand as environmental awareness increases in China
> > > > and more efficient energy sources are sought. Traditionally, petroleum-
> > > > based diesel has been the major source of energy supply. However, we
> > > > believe our products can capitalize on the rising demand for energy
> > > > and the increasing popularity of environmentally friendly energy.
> > > > Our products are biodiesel and chemical by-products of biodiesel
> > > > including glycerine and refined glycerine, plant asphalt, erucic acid,
> > > > erucic amide and stearic acid. Our biodiesel is primarily used by our
> > > > customers as an energy source and also in conjunction with
> > > > conventional petroleum-based diesel, while our by-products of
> > > > biodiesel have a wide range of applications. Our production facilities
> > > > are located in Beijing, Shanghai, Mianyang in Sichuan province, Handan
> > > > in Hebei province and Fuzhou in Fujian province, serving the northern,
> > > > eastern interior and southeastern regions of China respectively. We
> > > > target to increase our annual production capacity to 400,000 tons by
> > > > the end of 2008 with the expansion or addition of new production
> > > > facilities in Beijing,Shanghai, Hunan and Chongqing.
> > > > We intend to maintain our leading position in the biodiesel industry
> > > > in China and become a major producer of quality and cost effective
> > > > alternative energy products.

> Unfortunately this situation will likely continue for some time.
> I asked a friend working at the State Tax Administration about this
> and was told it won't be resolved within two years.

> On 11月28日, 下午6时42分, bonjovi <bonjovi...@gmail.com> wrote:

> > Does anybody know if any more meetings are scheduled to work out the
> > tax problems and does anyone have a time frame as to when any of this
> > could happen. I have a lot of money invested at $2.35 per share and
> > have taken quite a beaten and need so good advice from anyone with
> > knowledge on this subject. Thanks

> > On Nov 28, 3:02 am, muscle guys <ericmus...@hotmail.com> wrote:

> > > According to the NBSC, there are signs that the stimulus measures are
> > > already making a positive impact on the economy: the growth of energy
> > > supply and consumption picked up in the first quarter of 2009, along
> > > with a better-than-expected real GDP growth of 6.1% year-on-year,
> > > reflecting a sharp sequential rebound in economic activity.
> > > Although the global financial crisis will continue to impact the PRC
> > > economy, the government is putting in place measures to help it
> > > sustain positive growth in 2009.  China, having the third largest
> > > economy in the world after the United States and Japan, is expected to
> > > maintain solid and stable growth in the long-run.
> > > On Nov 28, 3:56 am, muscle guys <ericmus...@hotmail.com> wrote:

> > > > Corporate Overview

> > > > We are a leading producer of biodiesel and related products in China.
> > > > We were founded in 2001 and listed on the NYSE in 2007.Our stock code
> > > > is "GU".
> > > > Currently, we have an aggregate annual production capacity of 290,000
> > > > tons of biodiesel. As a pioneer of the biodiesel manufacturing sector
> > > > in the country, we intend to promote biodiesel as one of the best
> > > > solutions for China’s energy needs by producing quality and
> > > > environmentally friendly biodiesel at competitive cost.

> > > > Due to the continuous expansion of the Chinese economy and
> > > > corresponding increasing demand for energy, we expect the Chinese
> > > > economy to source a greater proportion of its energy needs from
> > > > alternatives to petroleum-based diesel which are non-renewable. We
> > > > believe that biodiesel will capture an increasingly larger share of
> > > > China’s energy demand as environmental awareness increases in China
> > > > and more efficient energy sources are sought. Traditionally, petroleum-
> > > > based diesel has been the major source of energy supply. However, we
> > > > believe our products can capitalize on the rising demand for energy
> > > > and the increasing popularity of environmentally friendly energy.
> > > > Our products are biodiesel and chemical by-products of biodiesel
> > > > including glycerine and refined glycerine, plant asphalt, erucic acid,
> > > > erucic amide and stearic acid. Our biodiesel is primarily used by our
> > > > customers as an energy source and also in conjunction with
> > > > conventional petroleum-based diesel, while our by-products of
> > > > biodiesel have a wide range of applications. Our production facilities
> > > > are located in Beijing, Shanghai, Mianyang in Sichuan province, Handan
> > > > in Hebei province and Fuzhou in Fujian province, serving the northern,
> > > > eastern interior and southeastern regions of China respectively. We
> > > > target to increase our annual production capacity to 400,000 tons by
> > > > the end of 2008 with the expansion or addition of new production
> > > > facilities in Beijing,Shanghai, Hunan and Chongqing.
> > > > We intend to maintain our leading position in the biodiesel industry
> > > > in China and become a major producer of quality and cost effective
> > > > alternative energy products.- 隐藏被引用文字 -

> > - 显示引用的文字 -

> Does anybody know if any more meetings are scheduled to work out the
> tax problems and does anyone have a time frame as to when any of this
> could happen. I have a lot of money invested at $2.35 per share and
> have taken quite a beaten and need so good advice from anyone with
> knowledge on this subject. Thanks

> On Nov 28, 3:02 am, muscle guys <ericmus...@hotmail.com> wrote:

> > According to the NBSC, there are signs that the stimulus measures are
> > already making a positive impact on the economy: the growth of energy
> > supply and consumption picked up in the first quarter of 2009, along
> > with a better-than-expected real GDP growth of 6.1% year-on-year,
> > reflecting a sharp sequential rebound in economic activity.
> > Although the global financial crisis will continue to impact the PRC
> > economy, the government is putting in place measures to help it
> > sustain positive growth in 2009.  China, having the third largest
> > economy in the world after the United States and Japan, is expected to
> > maintain solid and stable growth in the long-run.
> > On Nov 28, 3:56 am, muscle guys <ericmus...@hotmail.com> wrote:

> > > Corporate Overview

> > > We are a leading producer of biodiesel and related products in China.
> > > We were founded in 2001 and listed on the NYSE in 2007.Our stock code
> > > is "GU".
> > > Currently, we have an aggregate annual production capacity of 290,000
> > > tons of biodiesel. As a pioneer of the biodiesel manufacturing sector
> > > in the country, we intend to promote biodiesel as one of the best
> > > solutions for China’s energy needs by producing quality and
> > > environmentally friendly biodiesel at competitive cost.

> > > Due to the continuous expansion of the Chinese economy and
> > > corresponding increasing demand for energy, we expect the Chinese
> > > economy to source a greater proportion of its energy needs from
> > > alternatives to petroleum-based diesel which are non-renewable. We
> > > believe that biodiesel will capture an increasingly larger share of
> > > China’s energy demand as environmental awareness increases in China
> > > and more efficient energy sources are sought. Traditionally, petroleum-
> > > based diesel has been the major source of energy supply. However, we
> > > believe our products can capitalize on the rising demand for energy
> > > and the increasing popularity of environmentally friendly energy.
> > > Our products are biodiesel and chemical by-products of biodiesel
> > > including glycerine and refined glycerine, plant asphalt, erucic acid,
> > > erucic amide and stearic acid. Our biodiesel is primarily used by our
> > > customers as an energy source and also in conjunction with
> > > conventional petroleum-based diesel, while our by-products of
> > > biodiesel have a wide range of applications. Our production facilities
> > > are located in Beijing, Shanghai, Mianyang in Sichuan province, Handan
> > > in Hebei province and Fuzhou in Fujian province, serving the northern,
> > > eastern interior and southeastern regions of China respectively. We
> > > target to increase our annual production capacity to 400,000 tons by
> > > the end of 2008 with the expansion or addition of new production
> > > facilities in Beijing,Shanghai, Hunan and Chongqing.
> > > We intend to maintain our leading position in the biodiesel industry
> > > in China and become a major producer of quality and cost effective
> > > alternative energy products.- 隐藏被引用文字 -

> - 显示引用的文字 -

> According to the NBSC, there are signs that the stimulus measures are
> already making a positive impact on the economy: the growth of energy
> supply and consumption picked up in the first quarter of 2009, along
> with a better-than-expected real GDP growth of 6.1% year-on-year,
> reflecting a sharp sequential rebound in economic activity.
> Although the global financial crisis will continue to impact the PRC
> economy, the government is putting in place measures to help it
> sustain positive growth in 2009.  China, having the third largest
> economy in the world after the United States and Japan, is expected to
> maintain solid and stable growth in the long-run.
> On Nov 28, 3:56 am, muscle guys <ericmus...@hotmail.com> wrote:

> > Corporate Overview

> > We are a leading producer of biodiesel and related products in China.
> > We were founded in 2001 and listed on the NYSE in 2007.Our stock code
> > is "GU".
> > Currently, we have an aggregate annual production capacity of 290,000
> > tons of biodiesel. As a pioneer of the biodiesel manufacturing sector
> > in the country, we intend to promote biodiesel as one of the best
> > solutions for China’s energy needs by producing quality and
> > environmentally friendly biodiesel at competitive cost.

> > Due to the continuous expansion of the Chinese economy and
> > corresponding increasing demand for energy, we expect the Chinese
> > economy to source a greater proportion of its energy needs from
> > alternatives to petroleum-based diesel which are non-renewable. We
> > believe that biodiesel will capture an increasingly larger share of
> > China’s energy demand as environmental awareness increases in China
> > and more efficient energy sources are sought. Traditionally, petroleum-
> > based diesel has been the major source of energy supply. However, we
> > believe our products can capitalize on the rising demand for energy
> > and the increasing popularity of environmentally friendly energy.
> > Our products are biodiesel and chemical by-products of biodiesel
> > including glycerine and refined glycerine, plant asphalt, erucic acid,
> > erucic amide and stearic acid. Our biodiesel is primarily used by our
> > customers as an energy source and also in conjunction with
> > conventional petroleum-based diesel, while our by-products of
> > biodiesel have a wide range of applications. Our production facilities
> > are located in Beijing, Shanghai, Mianyang in Sichuan province, Handan
> > in Hebei province and Fuzhou in Fujian province, serving the northern,
> > eastern interior and southeastern regions of China respectively. We
> > target to increase our annual production capacity to 400,000 tons by
> > the end of 2008 with the expansion or addition of new production
> > facilities in Beijing,Shanghai, Hunan and Chongqing.
> > We intend to maintain our leading position in the biodiesel industry
> > in China and become a major producer of quality and cost effective
> > alternative energy products.

> Corporate Overview

> We are a leading producer of biodiesel and related products in China.
> We were founded in 2001 and listed on the NYSE in 2007.Our stock code
> is "GU".
> Currently, we have an aggregate annual production capacity of 290,000
> tons of biodiesel. As a pioneer of the biodiesel manufacturing sector
> in the country, we intend to promote biodiesel as one of the best
> solutions for China’s energy needs by producing quality and
> environmentally friendly biodiesel at competitive cost.

> Due to the continuous expansion of the Chinese economy and
> corresponding increasing demand for energy, we expect the Chinese
> economy to source a greater proportion of its energy needs from
> alternatives to petroleum-based diesel which are non-renewable. We
> believe that biodiesel will capture an increasingly larger share of
> China’s energy demand as environmental awareness increases in China
> and more efficient energy sources are sought. Traditionally, petroleum-
> based diesel has been the major source of energy supply. However, we
> believe our products can capitalize on the rising demand for energy
> and the increasing popularity of environmentally friendly energy.
> Our products are biodiesel and chemical by-products of biodiesel
> including glycerine and refined glycerine, plant asphalt, erucic acid,
> erucic amide and stearic acid. Our biodiesel is primarily used by our
> customers as an energy source and also in conjunction with
> conventional petroleum-based diesel, while our by-products of
> biodiesel have a wide range of applications. Our production facilities
> are located in Beijing, Shanghai, Mianyang in Sichuan province, Handan
> in Hebei province and Fuzhou in Fujian province, serving the northern,
> eastern interior and southeastern regions of China respectively. We
> target to increase our annual production capacity to 400,000 tons by
> the end of 2008 with the expansion or addition of new production
> facilities in Beijing,Shanghai, Hunan and Chongqing.
> We intend to maintain our leading position in the biodiesel industry
> in China and become a major producer of quality and cost effective
> alternative energy products.

> A word of caution is needed at this point. Most people (on this board)
> justify buying GU for its cash position and lack of debt. But cash has
> fallen from $140M Q1 to $100M to $86M. At that burn rate, how much
> longer can the company operate without accessing capital markets
> (which will surely dilute existing shareholders)? A more important
> measure than cash is working capital, which was reported at $60M this
> quarter.

> I agree that if you had a profitable company with GU's balance sheet,
> this would be a steal. But aside from cash burn, you also have to
> consider the consumption tax dispute. It seems like a deal breaker: at
> every plant where it has been levied, the plant was taken off line. If
> that tax is the difference between runability/profitability and
> bankruptcy, you have to be very cautious buying here.

> At this point, I'm treating GU like a penny stock. If the status quo
> continues, the price drifts further lower, and who knows where support
> is since its at its 52 wk low now. For me there are two reasons to buy
> this stock, the consumption tax issue is resolved and/or the price of
> oil returns to $100+. Without those conditions, I think you're in a
> crap shoot. Not saying you won't be right this time, but I think
> you'll make less mistakes (on similar issues) if you wait for the
> data. If GU is truly a great company (with repeatable profitability
> and growth) and its price will return to $15, you'll have plenty of
> time to get in after the facts are out. On the other hand, you might
> think you stole it at $1.50 before it goes to $0.75.

> Just my thoughts. Take them for what they're worth...

> This stock used to be at 17$ just before the economical downturn.
> There is no doubt that it is undervalued even though times are still
> rough.  The only word to keep in mind with this stock is "patience".

> The company looks solid to me.
> Any thought?