China Jushi | FY2001 business review

The listed company, then China Chemical Building Materials, manufactured and sold glass fiber and related products, building plastic flooring, and PVC pipes and fittings. It also operated general merchandise and building-material markets. Reported main-business revenue was RMB 531.324 million. These activities explain why the early group cannot be described solely by the product mix of modern China Jushi: glass fiber was important, but the listed parent still held several other operating businesses.

CCBM's FY2001 business included glass fiber and products, building-plastics flooring, PVC pipes and fittings, and the leasing or operation of merchandise and building-materials markets. The operating narrative reports glass-fiber production of 50,500 tonnes and sales of 54,000 tonnes, up 44.3% and 31.7% respectively. Production and sales are different flows; neither is installed design capacity, and the report does not provide an inventory-volume bridge that explains their difference. The new 16,000-tonne line reached its design output, while the acquired Jiujiang factory produced 17,400 tonnes after technical upgrades. Jiujiang's actual annual output must not be replaced by the design rating of a specific renovation. The overview also reports glass-fiber revenue of CNY 444.29 million and profit of CNY 54.988 million, whereas its industry table gives CNY 461.698 million of glass-fiber revenue and the financial note gives CNY 449.83603494 million. The report does not reconcile those boundaries. Management's first- and second-half Jushi profit figures also do not simply reconcile to the overview profit. This reader keeps the overview, subsidiary narrative and formal financial-note scopes separate.

The top five customers accounted for 33.34% of annual group sales, with combined sales of RMB 177.156 million. Management says demand in the United States was affected after the September 11 attacks and that it increased sales efforts in other countries and the domestic market. This records management's response to changing conditions; the concentration table does not identify individual product contracts or establish the destination of every shipment.

The report records growth in glass fiber output, sales and subsidiary earnings alongside losses in other parts of the group. Jiangyin Chemical Plastics Factory made a loss of RMB 18.805 million; management attributed it to ageing products, weak competitiveness, internal management problems and additional provisions. The Nanjing branch also recorded a loss. These disclosures place the operating expansion alongside the legacy businesses that weighed on the consolidated result, rather than treating rising fiber volumes as a complete account of the year.

At the Jiujiang factory, a 25,000-tonne glass fiber yarn technical upgrade was completed at the end of April 2001 and had reached design capacity by year-end. A separate energy-saving, environmental tank-furnace project remained in pre-construction preparation. The annual report therefore describes both an operating upgrade and a proposed further investment at the same factory. Shared location is useful for relating them to the Jiujiang base, but it is insufficient to merge the two construction projects.

Consolidated construction in progress opened at CNY 165.37653713 million, increased by CNY 221.30891287 million, transferred CNY 247.91376806 million to fixed assets and had CNY 16.00954588 million of other reductions, leaving CNY 122.76213606 million at year-end. Capitalized interest was CNY 0.76863279 million. This ledger movement differs from the cash-flow statement's CNY 205.56899460 million of payments for long-term assets; capitalization, transfers and cash payments must not be combined into a single investment figure. Buildings with original value of CNY 26.4772 million and machinery of CNY 155.2741 million secured CNY 86 million of long-term borrowing. The report also identifies sealed or idle machinery with original value of CNY 7.1233 million and net value of CNY 6.6144 million. Fixed assets therefore include collateralized and idle equipment, and their book value alone does not demonstrate available production capacity.

Reported consolidated construction in progress / 2001 / fy2001 consolidated closing

RMB 122,762,136.06

Transferred to fixed assets / 2001 / fy2001 consolidated transfer

RMB 247,913,768.06

This historical reading retains the business structure and reported milestones of the 2001 filing. It does not treat later disposals, renaming or overseas projects as events already completed in 2001. The report also states that an investment in a TFT-display ultra-thin glass project through Kaisheng Tongxiang Information Materials had begun some civil construction; this is a construction-stage investment in another material, rather than evidence of commercial glass fiber deliveries.

The report distinguishes projects that were commissioned from plans that remained inactive. A medium-alkali glass-fiber furnace renovation rated at 13,000 tonnes per year had an approved CNY 75 million budget but was not implemented because market conditions changed. A 10,000-tonne alkali-free line had an approved CNY 80 million budget; management says it started production in December 2001 and reached design capacity in that month. Yet the year-end construction ledger still records CNY 82.82544816 million for a 10,000-tonne alkali-free furnace-drawing line with no transfer to fixed assets. The commissioning claim and accounting status are both retained; the report does not supply the reconciliation. At Jiujiang, a CNY 64.31 million energy-saving and environmental furnace project was in preconstruction preparation, while a separately budgeted CNY 57.15 million, 25,000-tonne glass-fiber yarn renovation was completed in late April and reached design capacity by year-end. These project ratings must not be added to Jiujiang's 17,400 tonnes of actual annual output. The ledger also shows CNY 165.08416705 million transferred for a 16,000-tonne alkali-free line, CNY 3.41110777 million transferred for a 9,000-tonne medium-alkali line, and CNY 28.98967621 million still in construction for a 6,000-tonne yarn renovation. The 9,000-tonne ledger label does not establish identity with the unimplemented 13,000-tonne plan; the report supplies no reliable line-by-line identity bridge. Warehouse tonnage describes storage, not manufacturing capacity.

Reported consolidated construction in progress / 2001 / fy2001 10kt ledger closing

RMB 82,825,448.16

Transferred to fixed assets / 2001 / fy2001 16kt ledger transfer

RMB 165,084,167.05

Reported consolidated construction in progress / 2001 / fy2001 6kt yarn ledger closing

RMB 28,989,676.21

The top five customers account for CNY 177.156 million, or 33.34% of annual sales, in the operating overview. Separately, Jushi sold CNY 122.82182750 million to a US related sales company whose legal representative was the same as that of Jushi's foreign shareholder. The auditor describes those sales as 51.46% of export sales. The closing amount owed was CNY 52.59743863 million; the board explicitly asks for a repayment agreement covering overdue goods payments. This source supports an overdue classification for that named balance, while the general receivables age table does not prove that every aged item is contractually overdue. The filing uses Chinese name variants and does not establish an exact English legal identity for this US counterparty; it should not be merged with the initial Gibson investor proposal without evidence. Consolidated trade receivables are CNY 245.30650187 million gross, with CNY 18.66921976 million allowance and CNY 226.63728211 million net. Some 10.19% of gross receivables are more than three years old. Sales concentration, export dependence and collection exposure are related but distinct measures.

Reported related sales / 2001 / fy2001 us channel sales

RMB 122,821,827.5

Reported related trade receivables / 2001 / fy2001 us channel closing

RMB 52,597,438.63

Reported receivables gross / 2001 / fy2001 consolidated closing

RMB 245,306,501.87

Reported receivables allowance / 2001 / fy2001 consolidated closing

RMB 18,669,219.76

The issuer says it learned on 11 April 2002 that an approval certificate obtained by Jushi Group on 29 March listed different contributions: USD 14.3893 million for CCBM, USD 3.0230 million for the employee association, USD 10 million for SUREST FINANCE LIMITED, USD 0.2902 million for Zhenshi and USD 2.2491 million for a Tongxiang state-owned investment company. The board states that it had neither discussed nor approved the equity change and was investigating and seeking correction. This was a subsequent disclosure available before the FY2001 filing, not evidence that a remedial registration was completed at 31 December 2001. Later reports' remedial steps must be read in their own historical period.

The contingencies note gives CNY 435.4572 million of issuer guarantees at 31 December 2001. This includes guarantees for branches and subsidiaries, a joint guarantee with Zhenshi, current and noncurrent long-term borrowing, CNY 0.3 million for Nanjing Xinfufeng and CNY 20.55 million for Beijing Xiling Adhesive and Sealing Materials. It is not a clean measure of guarantees to unrelated parties, nor an amount to add to consolidated bank debt without accounting for overlap. The related-party note lists CNY 96 million of short-term Jushi borrowing, CNY 15.7766 million of current long-term borrowing and CNY 181.9206 million of noncurrent long-term borrowing guaranteed by the parent; CNY 8 million was jointly guaranteed with Zhenshi. Beijing Xiling's guarantee ran from April 2000 to April 2005 and had counter-guarantees, which do not prove the issuer's liability was removed. The narrative gives Jiangyin guarantees of CNY 16.5 million, while the related-party note gives CNY 17.5 million; the difference is not reconciled. The board also reports that audit work discovered post-1 July Jushi guarantees of EUR 1.7 million, USD 7.16 million and CNY 6.5 million that had not received board approval. Investigation and risk controls were ongoing at filing. Those foreign-currency figures are not automatically extra exposure on top of the disclosed total, because the report does not establish the overlap.

Outgoing guarantee balance / 2001 / fy2001 contingency total

RMB 435,457,200

Outgoing guarantee balance / 2001 / fy2001 jushi short term

RMB 96,000,000

Outgoing guarantee balance / 2001 / fy2001 jushi current long term

RMB 15,776,600

Outgoing guarantee balance / 2001 / fy2001 jushi noncurrent long term

RMB 181,920,600

Outgoing guarantee balance / 2001 / fy2001 jiangyin note

RMB 17,500,000

The year-end liability provision is CNY 6.638510 million, whereas the income statement note charges CNY 5.789780 million for guarantee-related joint repayment obligations in FY2001. These are a closing liability stock and an annual expense flow, so the different totals are not interchangeable. Jiangyin plastics had provided an unreported CNY 4 million guarantee for a pesticide factory. A court imposed CNY 4.067180 million of joint repayment; after CNY 1.4774 million compensation, the report gives CNY 2.589780 million remaining burden. Separately, the issuer recognized CNY 3.2 million for a Changzhou plastics borrowing guarantee after an out-of-court settlement. Those two charges reconcile to the annual guarantee expense. The later FY2002 correction of the Changzhou provision is a later evidence version and does not replace FY2001's as-filed result. The report's statements about planned controls or internal approval procedures do not demonstrate that these obligations had been extinguished.

Two financing events took place after FY2001 year-end but before filing. On 15 January 2002, the issuer borrowed CNY 14 million from Zhenshi until 3 February, promising a Jushi equity pledge if the borrowing could not be repaid. The report does not establish that the contingency produced an equity transfer. On 27 March 2002, the issuer guaranteed compensation for losses on CNY 18 million of securities entrusted by Shanghai Jiulian to a technology company. Collateral was the securities and cash in the issuer's designated brokerage account, capped at CNY 18 million, and the account could not be closed during the term through 26 March 2003. This is a subsequent commitment, not an additional guarantee already outstanding at 31 December 2001. A scheduled end date or collateral cap does not establish actual repayment or release.

The report follows Jiangyin's appeal over unpaid goods in Xinjiang and discloses a Supreme People's Court judgment dated 28 March 2002. The detailed narrative states contractual goods payments of CNY 3.779 million, less CNY 2.84284948 million previously paid, leaving CNY 0.93615052 million; it also awards CNY 4.58459630 million for extra goods, late-payment damages and joint liability of the regional government. The abbreviated financial note repeats gross contractual and extra-goods awards without that prior-payment deduction. They describe a judgment and legal claim, not evidence that the closing receivable had been collected in cash. The reader uses the detailed breakdown and preserves the distinction between the initial claim, awarded amounts, earlier payment and remaining principal. No recursive investigation of the counterparties is required to explain the disclosed collection risk.

The controlling shareholder, China New Building Materials Group, held 84.111 million shares, or 37.79%, and Zhenshi held 22.26%. The report says all of the controller's shares were frozen because of external guarantee liability for a stated term from 17 November 2000 to 30 December 2002. The freeze is not itself proof of a change in control, and the term end is not evidence of actual release. Total share capital remained 222.6 million shares. The report announces implementation of the FY2000 cash dividend at CNY 1 per ten shares, with payment scheduled for 21 August 2001. For FY2001, management proposed no dividend and no capitalization of reserves to support subsequent development; the proposal still required shareholder approval. Future distribution targets were intentions, not an enforceable payout or a completed distribution. These are the relevant shareholder consequences; routine meeting agendas and personnel biographies are omitted.

The formal consolidated income statement reports FY2001 revenue of CNY 531.32354720 million, business cost of CNY 355.28077827 million and operating profit of CNY 44.08252946 million. Investment losses of CNY 11.89744331 million, subsidy income of CNY 0.426542 million, non-operating income of CNY 0.59241160 million and non-operating expense of CNY 12.61384764 million bridge to profit before tax of CNY 20.59019211 million. Income tax of CNY 11.60661065 million and minority profit of CNY 7.51242881 million leave only CNY 1.47115265 million attributable to the listed company's shareholders. Investment losses include entrusted-investment losses and securities impairment, while guarantee costs are among the non-operating expenses. The summary on page 2 prints investment income as negative CNY 118.89744331 million; this conflicts with both note 34 and the formal statement, which print negative CNY 11.89744331 million and support the profit arithmetic above. Both original values are retained as evidence; the financial-statement figure supplies the displayed bridge. The parent alone reports revenue of CNY 321.69480015 million and net profit of CNY 1.25573641 million. These are the FY2001 as-filed amounts, not the revised 2001 comparatives reported in FY2002.

Reported business revenue / 2001 / fy2001 as filed consolidated

RMB 531,323,547.2

Reported business cost / 2001 / fy2001 as filed consolidated

RMB 355,280,778.27

Operating profit / 2001 / fy2001 as filed consolidated

RMB 44,082,529.46

Reported profit before tax / 2001 / fy2001 as filed consolidated

RMB 20,590,192.11

Reported consolidated owner profit / 2001 / fy2001 as filed consolidated

RMB 1,471,152.65

Reported business revenue / 2001 / fy2001 as filed parent

RMB 321,694,800.15

The formal cash-flow statement and its reconciliation both report FY2001 consolidated operating cash outflow of CNY 49.48068224 million. Operating receipts of CNY 535.59355335 million less payments of CNY 585.07423559 million support that amount. The summary on page 2 instead prints an outflow of CNY 53.48068224 million, a CNY 4 million discrepancy visible in the original PDF. The reader uses the formal statement for its cash bridge and preserves the conflicting summary evidence. Investing cash outflow of CNY 204.02641020 million was accompanied by financing inflow of CNY 186.84114121 million; the negative CNY 0.25148036 million exchange-rate effect takes the total cash reduction to CNY 66.91743159 million. Closing cash of CNY 92.11251909 million versus opening CNY 159.02995068 million independently reconciles that reduction. The investment statement reports CNY 205.56899460 million paid to acquire or construct long-term assets; this cash payment is not an annual increase in commissioned capacity. Working-capital reconciliation shows increases in inventory and operating receivables and a fall in operating payables, helping explain why reported earnings did not translate into operating cash. The parent separately reports operating inflow of CNY 11.10913929 million and closing cash of CNY 39.46587900 million. These scopes must not be combined with the group totals, and the auditor's restricted-deposit warning means a positive closing cash balance alone does not demonstrate freely available liquidity.

Net cash from operating activities / 2001 / fy2001 as filed consolidated

RMB -49,480,682.24

Net cash from investing activities / 2001 / fy2001 as filed consolidated

RMB -204,026,410.2

Net cash from financing activities / 2001 / fy2001 as filed consolidated

RMB 186,841,141.21

Cash net change / 2001 / fy2001 as filed consolidated

RMB -66,917,431.59

Reported monetary funds / 2001 / fy2001 closing consolidated

RMB 92,112,519.09

Reported monetary funds / 2001 / fy2001 opening consolidated

RMB 159,029,950.68

Net cash from operating activities / 2001 / fy2001 as filed parent

RMB 11,109,139.29

Reported monetary funds / 2001 / fy2001 closing parent

RMB 39,465,879

The consolidated financial notes report glass-fiber and product revenue of CNY 449.83603494 million and cost of CNY 305.21771733 million. Other businesses contribute CNY 81.48751226 million of revenue and CNY 50.06306094 million of cost. Together these reconcile to consolidated revenue of CNY 531.32354720 million and cost of CNY 355.28077827 million. Domestic revenue of CNY 292.651265 million and export revenue of CNY 238.67228220 million independently reconcile to the same sales total. These amounts describe the consolidated financial-note classification, not the different industry and product classifications in the operating overview. The notes' 2000 comparatives reflect the accounting adjustments described in the audit context. Parent-only sales are a separate reporting scope and must not be substituted for group demand or international exposure.

Reported business revenue / 2001 / fy2001 glass financial note

RMB 449,836,034.94

Reported business cost / 2001 / fy2001 glass financial note

RMB 305,217,717.33

Reported business revenue / 2001 / fy2001 other financial note

RMB 81,487,512.26

Reported business cost / 2001 / fy2001 other financial note

RMB 50,063,060.94

Reported business revenue / 2001 / fy2001 domestic financial note

RMB 292,651,265

Reported business revenue / 2001 / fy2001 export financial note

RMB 238,672,282.2

Year-end monetary funds of CNY 92.11251909 million include a CNY 37.39358607 million one-year deposit at the affiliated finance company, scheduled to mature on 15 July 2002 but subject to realization restrictions, and CNY 6.26070403 million of letter-of-credit margin deposits. The report fully provides against CNY 1.21358607 million of deposit interest accrued in 1999 and 2000. The affiliate also appears as a lender; deposit and borrowing balances are different claims and must not be netted without evidence. Management ended entrusted investment arrangements and reports recovery of CNY 10 million cash plus securities transferred at a purchase value of about CNY 24.87 million. Securities received are not cash recovered. The formal note shows securities cost of CNY 24.87380841 million, impairment of CNY 6.91149195 million and an additional CNY 23 million property-cooperation investment, yielding CNY 40.96231646 million of net short-term investments. Entrusted-investment losses of CNY 5.12619159 million are distinct from the securities impairment. The restricted deposit, margin funds and noncash securities recovery constrain what can be inferred from reported liquidity.

Other receivables total CNY 171.89911590 million gross and CNY 162.33474249 million net after CNY 9.56437341 million allowance. The largest named claim is CNY 41.69129445 million of accumulated unpaid losses from the entrusted operation of Changzhou plastics by an affiliated asset manager. The report says that manager bore CNY 28.9741 million of FY2001 operating losses under the agreement and had not compensated the accumulated claim by year-end. The issuer paid the manager a CNY 0.18 million management fee. The agreement was scheduled to end on 31 March 2002; expiry is not proof of collection. Other large balances include CNY 23.21741742 million lent to a Nanjing property developer, CNY 15 million in an entrusted-investment claim, CNY 11.19063270 million owed by the controlling shareholder and CNY 9.54848025 million of export-tax refunds. The parent separately has CNY 292.53288886 million gross and CNY 282.03785508 million net other receivables, including CNY 125.71820566 million from Jushi for unpaid profits, funding charges and loans. These parent-group balances are not all external trading receivables or cash earnings. The report's proposed Changzhou asset swap still required shareholder approval; it does not establish completion or recoverability of the entrusted-loss claim.

Reported gross other receivables / 2001 / fy2001 consolidated closing

RMB 171,899,115.9

Reported other receivables net / 2001 / fy2001 consolidated closing

RMB 162,334,742.49

Reported gross other receivables / 2001 / fy2001 parent closing

RMB 292,532,888.86

Reported other receivables net / 2001 / fy2001 parent closing

RMB 282,037,855.08

Related other receivable / 2001 / fy2001 entrusted loss claim

RMB 41,691,294.45

Consolidated inventory is CNY 130.53565842 million gross and CNY 127.98681967 million net after CNY 2.54883875 million impairment. Finished goods account for CNY 96.89264160 million. Prepayments are CNY 62.58270199 million and represent advance funding for purchases or other obligations, not delivered output or revenue. The cash-flow reconciliation records an inventory increase of CNY 30.06474560 million and an operating-receivable increase of CNY 69.19506110 million, while operating payables decrease by CNY 58.68977065 million. These movements help explain the operating cash outflow even though the income statement remains profitable. The report does not disclose enough stock-volume detail to turn finished-goods book value into tonnes or calculate a physical utilization rate.

Reported gross inventory / 2001 / fy2001 consolidated closing

RMB 130,535,658.42

Reported prepayments gross / 2001 / fy2001 consolidated closing

RMB 62,582,701.99

Closing consolidated short-term borrowings are CNY 366.932341 million, current portions of long-term borrowing CNY 15.7766 million and noncurrent long-term borrowing CNY 312.92055969 million. The current portion is separately classified and should not be added again to the noncurrent balance as though already included. The short-term note explicitly lists CNY 23.725 million overdue: CNY 3.2 million and CNY 11.91 million due in June 2001, and CNY 8.615 million due in February 2000. Long-term foreign-currency loans include USD 15.1604 million and EUR 1.70004550 million; translated closing CNY balances are not additional borrowing on top of the totals. Jushi buildings and machinery secure CNY 86 million of long-term loans, while the issuer guarantees other Jushi and Jiujiang borrowing. Management attributes the rise in long-term debt to glass-fiber line construction and technical upgrades. This explains the financing connection without assuming every approved budget became a completed asset or that collateral removed repayment risk.

Reported short-term borrowings / 2001 / fy2001 consolidated closing

RMB 366,932,341

Reported current long term borrowings / 2001 / fy2001 consolidated current

RMB 15,776,600

Reported long term borrowings / 2001 / fy2001 consolidated noncurrent

RMB 312,920,559.69

The filing reports historical income-tax treatment: a 15% issuer rate and generally 33% for other units, with specific exemptions for Nanjing Jinbang, a three-year exemption followed by two years at half rate for Jiujiang from 2001, and a two-year exemption followed by three years at half rate for Jushi from July 2001 after its joint-venture conversion. These are statements in a historical filing, not current tax-law guidance or an independent eligibility assessment. FY2001 subsidy income is CNY 0.426542 million, including export-related interest support and a technical-renovation subsidy. The financing-cost comparison also says CNY 13.153 million of interest support reduced FY2000 interest expense, whereas FY2001 reports CNY 26.66858701 million of interest expense before interest income and other finance charges. A comparison of finance costs therefore combines new borrowing and a change in the subsidy offset; it should not be presented as an unexplained operating deterioration.

Beijing JingDu Certified Public Accountants issued a qualified opinion dated 25 April 2002 on CCBM's FY2001 parent and consolidated statements under the historical Chinese Enterprise Accounting Standards and Enterprise Accounting System. The qualification concerns missing procedures or formalities when the previously wholly owned Jushi Group became a Sino-foreign joint venture on 28 June 2001. This is not an unqualified opinion or an IFRS filing. The auditor then separately draws attention to four matters: concentrated sales and unpaid receivables involving a US related party; unpaid losses from the entrusted operation of the Changzhou plastics business; restrictions on realizing a deposit at the group's affiliated finance company; and incomplete conversion of the Nanjing materials and Jiangyin plastics businesses into branches. These additional observations should not be recast as four separate audit qualifications. They identify ownership, collection, liquidity and organizational risks that accompany the reported glass-fiber growth.

CCBM adopted the Enterprise Accounting System from 1 January 2001 and retrospectively adjusted opening balances and its 2000 comparative columns. The policies changed the treatment of start-up expenses and introduced impairment assessments for fixed assets, construction in progress and intangible assets. The reported cumulative policy effect was CNY 11.66004305 million, including CNY 4.99027442 million for start-up costs and CNY 6.66976863 million for fixed-asset measurement; opening retained earnings fell by CNY 8.96518326 million. A separate correction removed duplicated Nanjing market-renovation costs and increased the issuer's 2000 profit by CNY 0.43826122 million. These changes affect comparative accounting bases and are not new FY2001 sales or cash generation. This historical filing remains distinct from later filings that corrected the 2001 guarantee provision.

Jushi Group was wholly owned in the first half of 2001 and became a controlled joint venture from 1 July. The approved transaction narrative specifies a 56.51% issuer stake, a 33.39% foreign stake and a 10.10% employee association stake. The initial proposal named Gibson Enterprises Inc., but the shareholder-approved proposal replaced that foreign investor with SUREST FINANCE LIMITED. This sequence does not establish that either name is the legal English identity of the separately disclosed US sales counterparty. Only USD 2.4 million of the foreign contribution had arrived by year-end, and the report says the foreign profit allocation was weighted by funds actually received. Management gives first-half Jushi revenue of CNY 218.85 million and profit of CNY 25.82 million, then second-half profit of CNY 32.73 million and an issuer entitlement of CNY 25.65 million. The investment note instead records CNY 22.89017386 million of second-half equity income; the report does not reconcile that recognized amount with the narrative entitlement. The consolidation table also prints 56.52%, against 56.51% in the transaction narrative. These measures remain separate. The issuer contributed CNY 140 million from Jushi's CNY 227.86233521 million audited net assets. The same transaction paragraph contains a surplus unit misprint and then a CNY 1,000 difference in the surplus amount. It reports CNY 14.5 million paid and CNY 73.36333521 million still unpaid; this reader preserves the discrepancies rather than silently reconstructing a corrected receivable.

The predecessor remained diversified beyond glass fiber. The Beijing building-materials market business had 80% issuer ownership and CNY 5 million of registered capital, but the issuer had funded CNY 24 million. The excess CNY 20 million was a loan pending the other investor's matching capital increase, not completed equity capitalization. The planned Hangzhou Kaisheng venture, with a proposed CNY 18 million issuer contribution and 31.82% stake, had not been established because management arrangements were unresolved. An approved CNY 10 million investment in Beixin Digital had not been implemented after market changes. The separate Tongxiang information-materials investment concerned ultra-thin glass for TFT liquid-crystal displays: the issuer reports CNY 10 million invested, national interest-support approval in July and some civil works, not completed commercial production. A Guilin biotechnology investment was reduced from a planned CNY 20 million and 20% stake to CNY 10 million and 10%; management says the investee had begun production, but this is not proof of product efficacy or a technical assessment. Those changes freed CNY 12.16 million, including CNY 2.16 million of remaining funds, for working capital. The financial notes retain a wider portfolio of materials, finance, property, plastics and insurance interests; their existence does not make them fully consolidated operating segments. Jiangyin Sanxin and Nanjing Xinfufeng were expressly excluded from year-end consolidation despite reported majority stakes.

Xianyang Kaisheng was established on 3 September 2001 with an initial CNY 16 million issuer contribution and 41.6% stake. In December, the issuer agreed to acquire another 48.4% from its controlling shareholder, taking the reported stake to 90%. Its business covered ceramic construction-project contracting, process equipment design and refractory-material research. The transaction narrative gives consideration of CNY 18.35623684 million, paid by offsetting a receivable from the seller; this was not cash collected from that receivable. The parent investment schedule's initial cost of CNY 34.35623684 million matches CNY 16 million plus that narrative price, and closing carrying value is CNY 34.10306315 million after an equity-accounted loss. However, the related-party note prints a CNY 18.6098 million acquisition price, CNY 0.25356316 million higher. The filing does not reconcile the discrepancy; neither amount should silently overwrite the other. The reported 90% ownership and receivable settlement do not establish a separate external market valuation.