Egypt phase II, 80,000 tonnes per year

The Egyptian second 80,000-tonne line was described in management discussion as completed and in production during 2016. Its construction accounting row nevertheless reports engineering progress of 90%, a budget of CNY 1,156,526,600.00 and a reported investment ratio of 79.27%. Opening construction of CNY 685,208,632.13 plus additions of CNY 282,766,271.28, less CNY 945,424,101.87 transferred to fixed assets, leaves CNY 22,550,801.54 of construction at year-end. A production milestone and residual project accounting or wider engineering work therefore have different scopes; the report does not provide a reconciliation establishing what the remaining balance covered. It reports CNY 13,611,092.35 of current-period capitalized interest at 5.79%, with funding described as own funds and borrowing. Capitalized interest is a project accounting cost, not another measure of annual output or an additional capacity claim. The phase identifier and earlier 80,000-tonne scope keep this project distinct from Egyptian phase III.

Project budget / 2016 / construction note

RMB 1,156,526,600

Construction in progress at year-end / 2016 / construction note

RMB 22,550,801.54

Issuer-reported investment-to-budget ratio / 2016 / construction note

79.27 percent

Engineering progress / 2016 / construction note

90 percent

Reported construction carrying-value additions / 2016 / construction note

RMB 282,766,271.28

Reported transfer into fixed assets / 2016 / construction note

RMB 945,424,101.87

Project capitalized interest / 2016 / construction note

RMB 13,611,092.35

The second Egyptian 80,000-tonne furnace-drawing line was completed and entered production in 2016. The report says operating and technical indicators improved on phase I. This is the production-stage update to the earlier proposal and construction disclosures. It does not apply the same production status to phase III, which the report describes separately as being started with completion expected later.

The wholly owned Jushi Group formally started the second Egyptian 80,000-tonne furnace-drawing project. Platinum processing, packaging materials and product workshops had begun operation, while powder preparation, an oxygen station and a substation were under construction. Full production was planned for June 2016. The supporting workshops' operation does not mean the glass fiber furnace was already fully producing. The explicit phase-II label distinguishes this project from the original Egyptian line.

The same table separately lists another Egyptian 80,000-tonne line project, with a different project amount of USD 188.05 million. It was in preparation, with zero recorded investment and completion expected in the first half of 2016. This is distinct from the already completed Egyptian line listed above it. The later phase-II description helps relate this proposal across filings; the shared company and capacity are not grounds to collapse the two rows.