China Jushi FY2001: Cash generation and working capital

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.