China Jushi FY2002: Business overview

During 2002 the group changed its portfolio through asset swaps and disposals. Plastic flooring, PVC pipes and fittings, and general merchandise-market activities were removed, while commercial property, home-product chain distribution and logistics, and other new-material activities entered the portfolio. Management set three strategic directions: new materials including glass fiber, commercial property, and home-product retailing and logistics. These were the group's stated business directions at this time, before its later concentration on glass fiber.

The five largest suppliers represented 43.87% of procurement, with purchases of RMB 116.12 million. The five largest customers represented 32.87% of group sales, with sales of RMB 208.56 million. These measures show concentration in the disclosed group totals. They do not identify named customers for a particular glass formulation, nor can the totals be assigned entirely to a newly acquired business without additional segment evidence.

The consolidated geographic revenue table reports domestic sales of CNY 306.55986632 million and exports of CNY 327.83431857 million in 2002, compared with CNY 292.65126500 million and CNY 238.67228220 million respectively in the same filing's 2001 comparative. Domestic and export figures sum to the main-business revenue total in each year. The overview rounds the FY2002 split to 48% domestic and 52% export. These figures describe reported revenue geography, not production locations, customer end-use industries, export tonnes or named-country market shares. No geographic cost table is provided in this note, so the reader cannot infer export profitability from revenue alone. The parent company's own revenue table is separate and is not a substitute for the consolidated export business.

Reported business revenue / 2002 / fy2002 consolidated domestic

RMB 306,559,866.32

Reported business revenue / 2002 / fy2002 consolidated exports

RMB 327,834,318.57

Reported business revenue / 2001 / comparative fy2002 consolidated domestic

RMB 292,651,265

Reported business revenue / 2001 / comparative fy2002 consolidated exports

RMB 238,672,282.2

For 2003 management intended to strengthen the core business, adjust the portfolio and improve management. Its operating plan envisaged glass fiber and other new materials, commercial property, and home-product chain distribution and logistics advancing together. It also proposed exploring new business areas and expanding proprietary and agency trade. This is the plan stated in the 2002 report, rather than proof of the following year's outcome.