China Jushi | FY2003 business review

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.

Glass-fiber products generated CNY 774.54312843 million of main-business revenue and CNY 534.84069739 million of main-business cost in 2003, compared with CNY 590.17353014 million and CNY 407.52882682 million in the filing's 2002 comparison. Other products generated CNY 77.68787252 million of revenue and CNY 44.04298095 million of cost, against CNY 61.09134799 million and CNY 31.47947368 million. The product categories reconcile to the group's revenue and cost totals. Management quotes 30.95% gross margin for glass fiber. Revenue less cost is distinct from the group's main-business profit after the separately reported sales taxes and surcharges. The other-products category is not allocated to individual products or plants without a disclosed bridge. The filing attributes revenue growth primarily to Jushi Group's higher sales volume, but does not provide a complete product-level tonnes, realised-price or end-use series from which to separate price and volume effects.

Reported business revenue / 2003 / group glass fiber products

RMB 774,543,128.43

Reported business cost / 2003 / group glass fiber products

RMB 534,840,697.39

Reported business revenue / 2003 / group other products

RMB 77,687,872.52

Reported business cost / 2003 / group other products

RMB 44,042,980.95

Reported business revenue / 2002 / comparative group glass fiber products

RMB 590,173,530.14

Reported business cost / 2002 / comparative group glass fiber products

RMB 407,528,826.82

Reported business revenue / 2002 / comparative group other products

RMB 61,091,347.99

Reported business cost / 2002 / comparative group other products

RMB 31,479,473.68

Management describes low glass fiber prices, the domestic SARS outbreak, and higher international prices for energy, imported raw materials and platinum. Its response centred on entering additional international markets, developing products demanded there, strengthening product-quality and service systems, and reducing consumption. The report describes these measures as contributing to stable growth at Jushi Group. It does not provide a product-by-product cost saving or a separately verified measure of technical leadership.

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.

Consolidated gross other receivables were CNY 167.35340734 million, including CNY 132.29782754 million classified as restructured debts. Five major balances totalled CNY 137.69342754 million, or 82.28% of the gross balance. They included CNY 59.398 million owed by Nanjing Jinbang Property Development, CNY 38.16482754 million owed by the controlling building-materials group and CNY 20.10 million owed by the group asset-management company. The report describes a five-year repayment commitment for the CNY 20.10 million, with CNY 4.02 million due before each 15 December starting in 2003; it says no such payment had been received at year-end, even after the October transfer of obligations to the asset-management company. A changed debtor or restructuring agreement is not cash recovery. The parent had a different gross other-receivable balance of CNY 195.91304895 million and CNY 15.48628843 million allowance; its net and group balances must not be combined. Nanjing Jinbang's CNY 59.398 million was still a receivable at the 2003 close, without a provision for that particular balance according to the note. The November 2003 agreement proposed converting it into equity. The amended charter was signed on 18 January 2004, capital verification covered 19 January and the amended business licence was obtained on 6 February 2004, leaving the listed company with 27.17% of registered capital. This is a subsequent noncash conversion, not a 2003 collection or proof that the minority investment later paid dividends.

The annual report gives CNY 285.773 million of direct outgoing guarantees by the listed company and CNY 90.8959 million of subsidiary outgoing guarantees weighted by ownership. Their stated total is CNY 376.6689 million, with an issuer-reported ratio of 66.76% to company net assets. The two reported components add arithmetically; the ratio is retained as reported, rather than represented as an independently reconciled calculation. The direct-guarantee discussion identifies CNY 18.95 million for Xiling, CNY 104 million of short-term and CNY 152.823 million of long-term borrowing for Jushi Group, and CNY 10 million for BNBM Technology. These rounded components sum to the reported direct total. The contract note distinguishes facility ceilings from actual borrowing: a Jushi ceiling of CNY 166 million had CNY 98 million outstanding, and a CNY 524 million ceiling had CNY 89.34 million outstanding at 31 December 2003. Other Jushi contracts show CNY 28.10 million outstanding and USD 5 million outstanding under a USD 9 million ceiling. These contracts and the borrowing-classification tables are not added into a second supposedly reconciled total. Jushi Group's guarantee for a Jiujiang facility with a CNY 160 million ceiling had CNY 109 million of actual borrowing at the 2003 close; another CNY 25 million ceiling had CNY 10 million of borrowing and no bank-acceptance bills. Currencies and provider/borrower roles remain distinct. The report describes shareholder counter-guarantees for Jushi and counter-guarantees and collateral for Xiling, but does not establish that these eliminated the issuer's contingent obligations. BNBM Technology also guaranteed CNY 1.10 million of borrowing for its 25%-held Dapeng Cement investment. The stated intention not to renew that historical guarantee is not evidence that it had already been released.

Closing subsidiary-guarantee balance / 2003 / issuer reported direct outgoing guarantees

RMB 285,773,000

Closing subsidiary-guarantee balance / 2003 / issuer reported ownership weighted subsidiary outgoing guarantees

RMB 90,895,900

Closing subsidiary-guarantee balance / 2003 / issuer reported direct plus weighted subsidiary guarantees

RMB 376,668,900

Reported guarantee net assets ratio / 2003 / issuer reported guarantees to company net assets

66.76%

The report states that a July 2003 notification from the securities regulator's Beijing office concerned guarantees given in 2001 for controlled subsidiaries without timely disclosure. According to the issuer's account of the notification, the company was exempted from an administrative penalty because actual guarantee amounts had appeared in the periodic report, repayment risk had not materialised in that matter, harmful consequences had not occurred and new management had corrected the conduct. The notification also required better disclosure management. These are attributed findings about that historical matter; they are not a conclusion that all guarantees were risk-free or that disclosure controls were independently proven effective.

Jushi Group pledged buildings with CNY 22.78612625 million of net book value for CNY 8 million of short-term borrowing, and equipment with CNY 117.02356734 million of net book value for CNY 78 million of short-term borrowing. The stated collateral periods ran from 1 January 2003 to 31 December 2005. Book value, collateral valuation and loan principal are distinct measures. Separately, the report says certain units lacked the land-use rights needed under combined building-and-land registration requirements and had not obtained property certificates. The affected buildings had net values of CNY 1.6863 million at BNBM Technology, CNY 12.6614 million at Jushi Group and CNY 12.5262 million at Beijing Jinbang. Baoyu Industrial had property certificates still being processed for buildings with CNY 27.69 million net value. These are disclosed title/documentation conditions; the filing does not establish a production shutdown, a loss of all asset ownership or eventual completion. No later-year resolution is backdated.

BNBM Building Materials Group was the direct controlling shareholder with 134.5776 million shares, or 37.79%; the filing names China National Building Materials Group as ultimate controller. Zhenshi held 79.288 million shares, or 22.26%. The report also identifies the building-materials and equipment import/export shareholder as wholly owned by the same ultimate group. These are ownership roles at different levels, not holdings to add to Jushi subsidiary capital. On 5 November 2003 the issuer implemented six capital-reserve shares for every ten existing shares, increasing total shares from 222.60 million to 356.16 million. The share-count increase came from capital reserves, rather than disclosed new cash financing. Year-end shares included 237.44 million unlisted/non-tradable shares and 118.72 million listed tradable A shares, so total capital was not equal to free float. The prior-year cash dividend of CNY 0.50 per ten shares was reported implemented on 2 July 2003; it is distinct from the proposal made after the 2003 year-end.

On 2 April 2004 the board proposed one bonus share, CNY 0.50 cash including tax, and one capital-reserve share for every ten shares at the 2003 year-end. The report states that shareholder approval and implementation were still required. The cash element was CNY 17.808 million; the stated CNY 53.424 million distribution included the bonus-share element and was not all cash. The capital-reserve transfer was separately proposed. The historical equity presentation included proposed cash dividends within equity. This post-period proposal does not establish that a 2003 cash dividend had been paid or that the subsequent scheme was approved.

The guarantee section reports CNY 376.6689 million and a 66.76% ratio to company net assets. The equity movement and business discussion give closing shareholder equity of CNY 555.86659817 million, whereas the summary table prints CNY 555.89959817 million. Using either printed closing equity figure produces approximately 67.76%, rather than the reported 66.76%. The detailed balance-sheet equity is retained separately from the summary discrepancy. This is an unresolved same-filing reconciliation issue, not a verified correction to the issuer's reported guarantee ratio or a basis for replacing its guarantee methodology. The reader retains the original reported ratio with this explicit limitation.

The report describes litigation begun in 2002 against Pudong Great Wall Building Materials over unpaid occupied funds, followed by a September 2003 settlement and a November court mediation document. Settlement assets included securities-account assets and balances: the first package was priced at CNY 7.23446179 million and the second at CNY 2.87139611 million. The filing says the first was executed at the agreed amount and the second at CNY 2.87652478 million. These are securities/account-asset transfers, not all cash recovered. It also describes an agreement to transfer a 5% insurance-brokerage interest or its associated proceeds/rights, valued at CNY 2.115 million, and an agreement to transfer CNY 1.864 million of claims against Shanghai Huajian. Agreement dates do not by themselves establish final cash receipt. Separately, rights in 4.611 million of the issuer's corporate shares, registered in the building-materials import/export company's name, were valued at CNY 12.89 million and became 7.3776 million shares after the six-for-ten capitalisation. The report explicitly says the relevant share-transfer formalities had not been completed at 31 December 2003. A separate CNY 7.50 million payment by the issuer is stated to have been made under the settlement. Asset rights, outstanding formalities and the issuer's own payments are kept separate; the settlement is not presented as a fully cash-settled recovery.

For the settlement provision requiring a CNY 1 million payment by the issuer after the four specified assets/rights, the filing reports CNY 0.50 million paid by the balance-sheet date and the remainder paid on 16 February 2004. That latter payment is subsequent to the 2003 close and is an issuer cash outflow, not collection of the disputed receivable. It does not establish that the separate pending corporate-share transfer was completed.

The FY2003 consolidated statements report CNY 852.23100095 million of main-business revenue, compared with CNY 651.26487813 million in the report's 2002 comparison. Main-business profit was CNY 272.07260408 million after CNY 578.88367834 million of cost and CNY 1.27471853 million of main-business taxes and surcharges. This historical measure differs from revenue less cost alone. Operating profit was CNY 125.91237186 million. CNY 2.81313059 million of investment income, CNY 4.94322411 million of subsidy income and net non-operating expenses brought profit before tax to CNY 133.09131993 million. After income tax of CNY 13.02271810 million and minority shareholders' earnings of CNY 48.81338216 million, net profit belonging to the listed shareholders was CNY 71.25521967 million. These are the figures as presented in this annual report; later-year restated comparisons have separate source versions. Subsidiaries' own net profits and the parent's investment income are different reporting layers and must not be added again to consolidated earnings.

Reported business revenue / 2003 / consolidated main business revenue

RMB 852,231,000.95

Reported business cost / 2003 / consolidated main business cost

RMB 578,883,678.34

Reported consolidated operating profit / 2003 / consolidated operating profit

RMB 125,912,371.86

Reported profit before tax / 2003 / consolidated profit before tax

RMB 133,091,319.93

Profit attributable to subsidiary minority / 2003 / consolidated minority profit

RMB 48,813,382.16

Reported consolidated owner profit / 2003 / consolidated historical owner profit

RMB 71,255,219.67

Consolidated investment income or loss / 2003 / consolidated investment income

RMB 2,813,130.59

Consolidated operating activities generated CNY 122.35969052 million of net cash in 2003. Cash paid for fixed, intangible and other long-lived assets was CNY 150.40885720 million, with a separate CNY 6.69949659 million paid for investments. These cash payments are not construction carrying balances, project budgets or output capacity. After investment recoveries and other stated flows, investing activities used CNY 142.90507611 million net, exceeding operating cash generation. Financing provided CNY 95.13497744 million net: gross borrowing receipts were CNY 630.88 million, debt repayments CNY 517.6645 million and capital contributions CNY 40.33755139 million. The CNY 25.34370081 million payment combines dividends, profits and interest; it is not all a listed-company cash dividend. Including a negative CNY 0.33697989 million currency effect, cash and cash equivalents increased by CNY 74.25261196 million. Year-end short-term borrowings were CNY 486.02 million and long-term borrowings CNY 204.35623268 million, with CNY 63.26733039 million separately shown as current long-term liabilities. Gross loan receipts, closing debt, financing cash and guarantee obligations measure different things. These consolidated totals do not identify cash spent on a particular furnace or establish unrestricted liquidity.

Reported operating cash flow / 2003 / consolidated operating cash

RMB 122,359,690.52

Reported cash capital expenditure / 2003 / consolidated long lived asset acquisition cash

RMB 150,408,857.2

Reported cash investment payments / 2003 / consolidated investment payment cash

RMB 6,699,496.59

Reported investing cash flow / 2003 / consolidated investing net cash

RMB -142,905,076.11

Reported financing cash flow / 2003 / consolidated financing net cash

RMB 95,134,977.44

Reported cash borrowing receipts / 2003 / consolidated new borrowing cash

RMB 630,880,000

Reported cash debt repayments / 2003 / consolidated debt repayment cash

RMB 517,664,500

Reported cash fx effect / 2003 / consolidated exchange effect

RMB -336,979.89

Reported cash change / 2003 / consolidated cash change

RMB 74,252,611.96

Reported short-term borrowings / 2003 / consolidated short term borrowings

RMB 486,020,000

Reported long term borrowings / 2003 / consolidated long term borrowings

RMB 204,356,232.68

The parent's operating activities used CNY 46.56971247 million of net cash. Cash received as investment income was CNY 20.62274183 million, a different measure from CNY 67.41223277 million of recognised investment income. Investment recoveries of CNY 3.847902 million and CNY 20 million of other investing receipts, less CNY 3.69949659 million of investment payments and the other listed payments, produced CNY 40.35478861 million of net investing inflow. Borrowing receipts of CNY 90 million, debt repayments of CNY 36 million and CNY 13.25635495 million of combined dividend, profit-distribution and interest payments produced CNY 40.74364505 million of financing inflow. Together the categories increased parent cash and cash equivalents by CNY 34.52872119 million. The large other-operating receipts and payments cannot all be described as manufacturing sales and purchases. These parent flows are retained separately from the consolidated cash investment and borrowing totals.

Reported operating cash flow / 2003 / parent only operating cash

RMB -46,569,712.47

Reported investing cash flow / 2003 / parent only investing cash

RMB 40,354,788.61

Reported financing cash flow / 2003 / parent only financing cash

RMB 40,743,645.05

Reported cash investment payments / 2003 / parent only investment payment cash

RMB 3,699,496.59

Reported cash borrowing receipts / 2003 / parent only borrowing cash

RMB 90,000,000

Reported cash debt repayments / 2003 / parent only debt repayment cash

RMB 36,000,000

Gross trade receivables closed at CNY 298.96364460 million, with CNY 19.06780123 million of allowance, leaving CNY 279.89584337 million net. The prior comparison gives CNY 286.94195094 million gross and CNY 14.99895992 million allowance, or CNY 271.94299102 million net. Current balances include CNY 25.56748675 million aged two to three years and CNY 25.23716626 million aged more than three years. Age bands are not the same as contractual days overdue. The five largest closing accounts totalled CNY 112.49321219 million, or 37.63% of gross receivables, including the related US balance discussed separately. Bank-acceptance bills rose to CNY 23.53044114 million from CNY 4.281885 million. Management attributes this increase to Jushi's greater sales and a change in settlement methods. A bill receivable is not already received cash; these amounts are separate from trade-receivable and related-party totals.

Reported receivables gross / 2003 / group trade receivables

RMB 298,963,644.6

Reported receivables allowance / 2003 / group trade receivable allowance

RMB 19,067,801.23

Reported receivables gross / 2002 / comparative group trade receivables

RMB 286,941,950.94

Reported receivables allowance / 2002 / comparative group trade receivable allowance

RMB 14,998,959.92

Bank acceptance receivables / 2003 / group bank acceptance bills

RMB 23,530,441.14

Bank acceptance receivables / 2002 / comparative group bank acceptance bills

RMB 4,281,885

Gross inventories were CNY 183.50552298 million against CNY 179.17063799 million in the comparison. Finished goods remained the largest current component at CNY 134.80981469 million; raw materials were CNY 44.11393968 million. The note says the CNY 0.82211472 million opening finished-goods allowance was removed after the relevant stock was scrapped, rather than establishing a cash recovery. Supplier prepayments fell to CNY 34.62509085 million from CNY 45.13054899 million, which the report attributes to changed settlement methods. Major advances included CNY 10 million for land, CNY 5 million of engineering payments, CNY 1.60 million for equipment, CNY 1.56633 million for fuel and CNY 1.38592188 million of customs deposits. They total CNY 19.55225188 million, or 56.47% of prepayments. Land, equipment, fuel and deposits serve different purposes; the filing does not allocate all advances to a named production line or establish that a lower closing balance was a refund.

Reported gross inventory / 2003 / group inventories

RMB 183,505,522.98

Reported gross inventory / 2002 / comparative group inventories

RMB 179,170,637.99

Reported prepayments gross / 2003 / group supplier prepayments

RMB 34,625,090.85

Reported prepayments gross / 2002 / comparative group supplier prepayments

RMB 45,130,548.99

The monetary-funds note reports a closing total of CNY 172.62096662 million, compared with CNY 98.36835466 million. Its reported converted-CNY subtotals are CNY 0.46295325 million of cash, CNY 147.77024962 million of bank deposits and CNY 24.38776375 million of other monetary funds, which add to the printed total. The original-currency and converted-CNY entries for RMB cash and RMB bank deposits do not agree even though the printed exchange rate is one; the component table therefore remains unreconciled. The note identifies CNY 20.16472968 million of Jushi letter-of-credit guarantee deposits within other monetary funds, with the rest including securities-account balances. The reported aggregate is not described as wholly unrestricted operating cash, and the filing does not establish an independently reconciled freely available cash figure.

Reported monetary funds / 2003 / group reported monetary funds

RMB 172,620,966.62

Reported monetary funds / 2002 / comparative group reported monetary funds

RMB 98,368,354.66

The parent's reported income-tax rate was 15%. Subsidiaries had separate historical tax treatment: Jiujiang was in a tax-exempt year under its three-year exemption followed by two half-rate years from 2001. Jushi Group was in its first half-rate year in 2003 after a two-year exemption, with the report giving an actual 13.2% burden; Jiaxing composites was in the last year of its half-rate benefit, also quoted at 13.2%. These are historical disclosed arrangements, not a current tax-law guide or a single group statutory rate. Subsidy income totalled CNY 4.94322411 million. This included CNY 3 million of support linked to Jushi technical renovation, CNY 0.91586511 million of Jun'an Cement VAT relief on specified blocks using stone powder and fly ash, CNY 0.43 million of technology awards and CNY 0.597359 million of other support. The amounts are recognised support, not ordinary product sales or proof of recurring future awards. Consolidated tax expense was CNY 13.02271810 million; the tax mix and support are relevant to interpreting earnings.

Customer advances closed at CNY 22.27457257 million compared with CNY 40.82101832 million. The report says Jushi took payment before delivery from some customers and attributes the reduction to more timely shipments. Advances aged over one year totalled CNY 10.50176907 million; the note does not by itself establish cancelled orders, overdue refunds or a new backlog measure. Other payables included CNY 23.06996351 million of technical-development amounts accrued by Jushi at 3% of its sales under the cited provincial arrangement. The filing explicitly calls the balance accrued but not yet used for technical renovation. It is not described as cash already spent on R&D, a completed technology project or new investment available without conditions. Routine staff-fund and expense components are retained in source evidence without generating separate reader paragraphs.

Huazheng's audit report dated 2 April 2004 gives an unmodified opinion on the FY2003 consolidated and parent-company balance sheets, profit and profit-distribution statements and cash-flow statements under the Chinese Enterprise Accounting Standards and Enterprise Accounting System then applicable. These historical statements are not an IFRS restatement, and automatic comparability with later accounting frameworks is not assumed. The parent and consolidated scopes remain separate. An audit opinion on the financial statements is also separate from independent editorial review of this site's English explanations.

The filing changed Jushi Group's fixed-asset residual-value estimate from 5% to 10% and reports an increase of CNY 1.99 million in its current-period profit. This is an accounting-estimate effect at Jushi, not additional cash or automatically the same increase in listed-shareholder profit. Historical corrections also affect the opening comparison. The 2002 timing adjustment increased Jushi's prior-year revenue by CNY 20.97964297 million and cost by CNY 15.24195850 million, increasing its prior-year retained profit by CNY 5.73768447 million and the listed company's opening retained profit by CNY 3.84424859 million at the stated historical 67% interest. The two descriptions print different related receivable adjustments: CNY 24.54618227 million in the management discussion and CNY 24.54600227 million in the financial note. That CNY 180 discrepancy remains isolated; neither number is used as a silently reconciled trade-credit correction. Other disclosed opening-retained-profit corrections include the CNY 5.69169460 million impairment of the Yantai Bohai investment, prior tax, subsidiary-result and bonus adjustments. The change in treatment of proposed cash dividends reclassified CNY 11.13 million from the 2002 payable to proposed dividends within equity; it was not a cash payment. Corrections to historical equity-investment differences are also reported to increase current listed-company net profit by CNY 0.31581953 million. The 2002 comparison in this filing is adjusted under this filing's basis; figures later restated in another annual report remain distinct versions.

At year-end the listed company held 56.51% of Jushi Group, whose other registered owners were Zhenshi at 15.10% and SUREST FINANCE LIMITED at 28.39%. Jushi held 99% of Jushi Jiujiang and 75% of its Jiaxing glass-fiber composites subsidiary; these are indirect interests at a different ownership level. The consolidation table, parent's investment table and related-party table identify BNBM Technology as 95% held and Beijing Jinbang as 80% held. One earlier subsidiary table instead prints the two percentages against the opposite rows; that inconsistency is retained, rather than silently treating it as a verified change of control. The report explains that BNBM Technology was acquired at the end of 2002, bringing additional businesses into 2003 earnings. Jiujiang's 2003 income was consolidated through Jushi Group for January-December, whereas the comparison did not consolidate Jiujiang's income. Several businesses disposed of or exchanged in 2002 also disappear from the 2003 income perimeter. Qibai Ceramics, a 60%-held BNBM Technology subsidiary, entered income consolidation for July-December 2003 after the capital contribution was completed on 1 July. It had CNY 6.39938806 million of closing assets and a CNY 0.35252596 million loss for those six months. These perimeter changes affect the growth comparison: the filing does not provide an entirely constant-business growth series, and subsidiary results already included in consolidation must not be added again.

Reported consolidated total assets / 2003 / qibai ceramics reported assets

RMB 6,399,388.06

Reported net profit / 2003 / qibai ceramics reported profit july december

RMB -352,525.96

The parent's main-business revenue fell to CNY 7.304118 million from CNY 129.39211534 million in its 2002 comparison. Its note attributes the reduction to the 2002 removal of former manufacturing branches, rather than treating the parent as the whole group's factory business. The parent made CNY 3.69960426 million of operating profit but CNY 67.41223277 million of investment income, supporting CNY 69.91959173 million of net profit after the stated non-operating items and CNY 0.57280387 million of tax. The equity-investment movement includes CNY 61.55987303 million of current Jushi equity adjustment, distinct from a cash dividend received. The parent's net long-term equity investments were CNY 374.45818110 million after the equity-investment differences and CNY 5.69169460 million of impairment shown separately. Beijing Jinbang's CNY 0.86592279 million result was attributed in full to the parent under the disclosed agreement and June 2003 decisions, although its capital holding was 80%; ownership percentage alone therefore does not describe every earnings-allocation term. Parent earnings, investee profits and group shareholder profit are separate scopes.

Operating profit / 2003 / parent only operating profit

RMB 3,699,604.26

Consolidated investment income or loss / 2003 / parent only investment income

RMB 67,412,232.77

Reported net profit / 2003 / parent only net profit

RMB 69,919,591.73

Equity method result / 2003 / parent only jushi profit adjustment

RMB 61,559,873.03

Long term investments net / 2003 / parent only long term equity investments

RMB 374,458,181.1

The business discussion reports Jushi Group, the glass-fiber R&D/manufacturing/sales subsidiary, with CNY 1,328.884 million of assets and CNY 106.515 million of net profit. Beijing Jinbang operated the Lvxin Jiayuan building-materials market within the commercial-property business, with CNY 39.24 million of assets and CNY 0.866 million of profit. BNBM Technology combined new-materials research, production and sales with distribution and industrial investment; it had CNY 121.06 million of assets and CNY 2.712 million of profit. The 20%-held BNBM Logistics investment served home-product distribution, chain operations, logistics, commercial property and trade, reporting CNY 700.12 million of assets and CNY 20.245 million of profit. These are the respective investees' reported results, not all profits attributable to listed shareholders. The subsidiary and minority-investment scopes, consolidation changes and contractual earnings allocation discussed separately prevent adding these figures to group profit or treating every business as a wholly owned factory.

Reported consolidated total assets / 2003 / jushi group reported assets

RMB 1,328,884,000

Reported net profit / 2003 / jushi group reported profit

RMB 106,515,000

Reported consolidated total assets / 2003 / beijing jinbang reported assets

RMB 39,240,000

Reported net profit / 2003 / beijing jinbang reported profit

RMB 866,000

Reported consolidated total assets / 2003 / bnbm technology reported assets

RMB 121,060,000

Reported net profit / 2003 / bnbm technology reported profit

RMB 2,712,000

Reported consolidated total assets / 2003 / bnbm logistics reported assets

RMB 700,120,000

Reported net profit / 2003 / bnbm logistics reported profit

RMB 20,245,000

The related-party note reports CNY 159.90352606 million of goods-and-services sales to a US counterparty in 2003, against CNY 139.83571972 million in 2002. It identifies the relationship as a shared legal representative with Jushi Group's foreign shareholder, rather than describing the counterparty as a controlled subsidiary. The closing trade receivable was CNY 75.14031499 million, or 25.13% of the consolidated gross trade-receivable balance; the prior-year balance was CNY 65.81969646 million, or 22.94%. The major-receivable table puts the closing balance in the under-one-year age band, which does not by itself establish whether it was overdue under the sales terms. A separate operating-funds schedule records CNY 150.582907 million of reductions during 2003; that heading does not establish that every reduction was a cash collection. The relationship therefore matters both to sales exposure and to cash conversion. This filing gives the counterparty's Chinese name but does not establish a verified English legal spelling, so the reader uses a bounded US-counterparty description. Later-year exclusivity or payment-term disclosures are not backdated to 2003, and no orders or end customers are inferred.

Reported business revenue / 2003 / related us counterparty goods services sales

RMB 159,903,526.06

Reported business revenue / 2002 / comparative related us counterparty goods services sales

RMB 139,835,719.72

Reported related trade receivables / 2003 / related us counterparty trade receivables

RMB 75,140,314.99

Reported related trade receivables / 2002 / comparative related us counterparty trade receivables

RMB 65,819,696.46

The engineering ledger reports CNY 101.41343670 million of additions to construction in progress and CNY 103.63092330 million transferred to fixed assets during 2003. Its opening balance is CNY 11.23954541 million, other transfers CNY 0.00407331 million and closing balance CNY 9.01798550 million. These accounting movements are not the CNY 150.40885720 million of cash paid for long-lived assets in the consolidated cash-flow statement. A ledger column named a 16,000-tonne tank-furnace drawing project records CNY 1.96668184 million opening work, CNY 91.87104436 million of additions and CNY 93.83772620 million transferred to fixed assets, leaving no closing work in that column. Its stated funding is internally raised funds and loans. A separate 10,000-tonne finished-goods warehouse transferred CNY 2.09663715 million to fixed assets. Warehouse capacity is not manufacturing output capacity. The ledger's 16,000-tonne name does not establish identity with the 10,000-tonne Jiujiang upgrade or the 40,000-tonne line in the business discussion. The latter formally started in November 2003 and remained in civil construction when the report described a plan for production within the year; this is not evidence of 2003 commissioning. Project identity and cash allocation remain unassigned where the filing supplies no reliable bridge.

Reported construction carrying-value additions / 2003 / group construction ledger additions

RMB 101,413,436.7

Reported construction transfer to fixed assets / 2003 / group construction ledger transfers to fixed assets

RMB 103,630,923.3