China Jushi FY2002: Subsidiaries and invested companies

In November 2002, CCBM agreed a related-party asset swap with its controlling shareholder, BNBM Group; shareholders approved it on 7 December, and the report says asset handover and registration changes were completed. The listed company transferred the assets and liabilities of the Changzhou building-plastics and Jiangyin chemical-plastics factories, its 90% stake in Xianyang Kaisheng, and a CNY 9.70647213 million claim against the ultimate parent. In return it acquired 90% of Beixin Technology Development and 18.546% of Beixin Logistics. The disclosed assessed values were CNY 91.9813 million for assets transferred out and CNY 92.1876 million for assets received, with a CNY 0.2063 million balancing payment. These are transaction valuations, not sales revenue or cash proceeds. The financial note separately records the acquired assets at CNY 84.3878 million using purchase-date book values plus the balancing payment; it does not record them at the assessed total. This reshaped the portfolio toward materials, technology investment and logistics while retaining the controlled glass-fiber business.

Reported transaction assessed value / 2002 / fy2002 swap out assessed

RMB 91,981,300

Reported transaction assessed value / 2002 / fy2002 swap in assessed

RMB 92,187,600

Reported acquisition book value / 2002 / fy2002 swap purchase date recorded

RMB 84,387,800

The 18.546% Beixin Logistics interest received in the asset swap was followed by a separate agreement on 7 December to acquire another 1.454% from BNBM's listed building-materials company for CNY 3.6995 million. The narrative says the registration changes were completed, and the commitments note explicitly gives 20% after this transfer: 18.546% plus 1.454%. However, both the consolidated and parent-company year-end investment schedules still list 18.546%, while the operating overview also uses that percentage. The report does not reconcile the separate purchase into those schedules. This reader therefore retains the transaction total and schedule percentage separately rather than rewriting the schedules or treating the difference as an unexplained naming mismatch. The report says no FY2002 investment income was included from the December-acquired logistics interest. Its disclosed full-year investee profit must not be treated as a contribution to the listed company's FY2002 earnings.

The financial notes distinguish the FY2002 income perimeter from the closing balance sheet. Nanjing New Materials contributed January-March income but was absent from the year-end balance sheet; the old Jiujiang factory, Changzhou and Jiangyin factories, Nanjing Jinbang Baiye and Xianyang Kaisheng contributed January-December income but were no longer included as those old entities in the closing balance sheet. Newly acquired Beixin Technology Development was included in the closing balance sheet but not in FY2002 income. The restructured Jiujiang company was included in Jushi Group's balance sheet but not separately in the listed issuer's FY2002 income table. The closing controlled-company list gives Jushi Group at 56.51%, Beijing Jinbang at 80% and Beixin Technology Development at 95%. Changes in assets, working capital and parent-company sales therefore reflect changes in the business perimeter as well as trading performance; a year-end ownership list alone cannot support a like-for-like growth comparison.

The parent-company statement reports CNY 129.39211534 million main-business revenue and CNY 104.97787340 million main-business cost, but an operating loss of CNY 33.81431094 million. CNY 43.38548178 million of investment income, including CNY 41.42454182 million equity-method income, supported parent net profit of CNY 7.86836658 million. Equity-method income includes subsidiary and associate results; it is not the consolidated group's investment-income total of CNY 0.94754333 million, and it is not cash received. The Jushi investment schedule separately reports CNY 28.5976 million of profits distributed and a CNY 38.56519497 million cumulative equity change. Restructuring also removed businesses from the parent year-end accounts. These distinctions explain why the parent accounts, controlled operating entities and consolidated statements require separate treatment.

Reported business revenue / 2002 / fy2002 parent as filed

RMB 129,392,115.34

Reported business cost / 2002 / fy2002 parent as filed

RMB 104,977,873.4

Operating profit / 2002 / fy2002 parent as filed

RMB -33,814,310.94

Reported profit before tax / 2002 / fy2002 parent as filed

RMB 7,868,366.58

The operating overview reports Jushi Group assets of CNY 1,201.33 million and full-year net profit of CNY 63.95 million; Beijing Jinbang had CNY 35 million assets and CNY 2.73 million net profit. These are operating-entity results, not profits entirely attributable to the listed shareholders. Newly acquired Beixin Technology Development's CNY 63.31 million assets entered the closing balance sheet, while its income was not consolidated for 2002. Beixin Logistics disclosed CNY 452.07 million assets and CNY 16.82 million full-year profit, but the report says no income was recognized from the December-acquired interest in FY2002. The overview also discloses losses for several disposed businesses; those losses cannot be removed from the annual results merely because the entities were absent at year end. Investment scope, control, acquisition timing and Jushi's actual-contribution-based economic rights must be retained when linking these operating facts across years.