China Jushi FY2003: Business overview

In 2003 the group reported three business areas: R&D, production and sales of new materials including glass fiber; commercial property development and operation; and home-product chain operations and logistics. Main-business revenue reached RMB 852.231 million. Jushi Group remained a 56.51%-owned subsidiary. The group also held 95% of Beixin Technology and 20% of Beixin Logistics. These ownership interests and business categories describe the historical portfolio, which was broader than the present materials-manufacturing profile.

The five largest customers accounted for CNY 322.02907380 million of sales, or 37.79% of total sales according to the financial note. This sales concentration differs from the top-five closing receivable share of 37.63%; annual purchases and receivable balances do not identify the same exposure. The five largest suppliers provided CNY 134.0166 million of purchases. The management discussion prints a 33.22% share, while the inventory note prints 33.32%. Both original pages have been checked; the percentage difference remains disclosed without inventing a reconciled purchase denominator. The filing does not establish the individual supplier amounts or direct end-customer orders behind these aggregates.

Reported top five customer sales / 2003 / group top five customer sales

RMB 322,029,073.8

Self-operated exports generated CNY 438.54237558 million of revenue and CNY 294.09326467 million of cost, versus domestic sales of CNY 413.68862537 million and CNY 284.79041367 million. The 2002 comparison gives export revenue/cost of CNY 327.83431857 million/CNY 212.04040239 million and domestic revenue/cost of CNY 323.43055956 million/CNY 226.96789811 million. The report describes exports as 51.46% of main-business revenue and domestic sales as 48.54%. These geographic categories reconcile to consolidated totals; they do not identify every destination country, direct end customer or an individual line's utilisation. Sales exposure to international demand is also accompanied by the reported pressure from energy, imported raw materials and platinum costs.

Reported business revenue / 2003 / group domestic sales

RMB 413,688,625.37

Reported business cost / 2003 / group domestic sales

RMB 284,790,413.67

Reported business revenue / 2003 / group self operated exports

RMB 438,542,375.58

Reported business cost / 2003 / group self operated exports

RMB 294,093,264.67

Reported business revenue / 2002 / comparative group domestic sales

RMB 323,430,559.56

Reported business cost / 2002 / comparative group domestic sales

RMB 226,967,898.11

Reported business revenue / 2002 / comparative group self operated exports

RMB 327,834,318.57

Reported business cost / 2002 / comparative group self operated exports

RMB 212,040,402.39

The following year's plan retained the three business directions and proposed exploring new growth opportunities through capital operations and lower-cost expansion. Management also intended to strengthen integration, procedures, budgeting and execution of internal controls. These are the priorities stated in the historical filing. They are not evidence that subsequent portfolio changes or capacity additions had already occurred by the end of 2003.