China Jushi FY2001: Subsidiaries and invested companies

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.