China Jushi | FY2004 business review

The company, reporting as China Fiberglass in 2004, described new materials including glass fiber, commercial property and home-product chain operations with logistics as its business scope. It reported 149,000 tonnes of glass fiber and related-product output, up 22.80%, and sales of 151,000 tonnes, up 31.50%. Sales included 90,000 tonnes of exports, up 48.00%. These are the company's reported annual operating quantities, rather than full-year output from each newly commissioned line. They are distinct from year-end design capacity and from the product and geographic revenue tables. The report does not allocate these quantities among particular grades, factories or named customers.

Production volume / 2004 / group glass fiber and products output

149,000 tonnes

Sales volume / 2004 / group glass fiber and products sales

151,000 tonnes

Sales volume / 2004 / group glass fiber and products export sales

90,000 tonnes

Glass-fiber products generated CNY 997.92033586 million of main-business revenue in 2004, compared with CNY 774.54312843 million in 2003. Other products increased from CNY 77.68787252 million to CNY 147.73341382 million. Together they make up the group's CNY 1,145.65374968 million of main-business revenue. Glass-fiber product cost was CNY 690.74033313 million, versus CNY 534.84069739 million a year earlier; other-product cost was CNY 113.80363854 million, versus CNY 44.04298095 million. The business discussion gives a rounded glass-fiber gross margin of 30.78%. Product revenue less cost differs from historical main-business profit, which also deducts main-business taxes and surcharges. Domestic revenue rose from CNY 413.68862537 million to CNY 550.21422153 million, while self-operated export revenue increased from CNY 438.54237558 million to CNY 595.43952815 million, representing 51.98% of total main-business revenue. Geographic totals cover all main-business products, not solely glass fiber, and do not indicate manufacturing locations. Management attributes revenue growth mainly to higher Jushi Group sales volume. The filing does not allocate these product amounts between individual grades, factories or projects.

Reported glass-fiber and related-product revenue / 2004 / glass fiber product revenue

RMB 997,920,335.86

Reported glass-fiber and related-product revenue / 2003 / glass fiber product revenue comparative 2003

RMB 774,543,128.43

Reported glass-fiber and related-product cost / 2004 / glass fiber product cost

RMB 690,740,333.13

Reported glass-fiber and related-product cost / 2003 / glass fiber product cost comparative 2003

RMB 534,840,697.39

Reported glass-fiber and related-product revenue / 2004 / other product revenue

RMB 147,733,413.82

Reported glass-fiber and related-product revenue / 2003 / other product revenue comparative 2003

RMB 77,687,872.52

Reported glass-fiber and related-product cost / 2004 / other product cost

RMB 113,803,638.54

Reported glass-fiber and related-product cost / 2003 / other product cost comparative 2003

RMB 44,042,980.95

Reported domestic main-business revenue / 2004 / consolidated domestic main business revenue

RMB 550,214,221.53

Reported domestic main-business revenue / 2003 / consolidated domestic main business revenue comparative 2003

RMB 413,688,625.37

Reported foreign main-business revenue / 2004 / consolidated self operated export revenue

RMB 595,439,528.15

Reported foreign main-business revenue / 2003 / consolidated self operated export revenue comparative 2003

RMB 438,542,375.58

Management describes unusually tight oil, electricity, coal and transport conditions and rising costs. It sought to ease the pressure through cost reduction, technical progress and management changes. The production-line discussion also refers to newly developed proprietary technology. These passages explain the emphasis on larger furnaces and operating efficiency, while claims about exceptional technical standing remain the company's own assessment rather than an independently measured comparison.

The top five customers generated RMB 437.6153 million in sales and represented 38.20% of the annual total. The top five suppliers accounted for RMB 164.2966 million of procurement, or 22.94%. These group measures sit alongside the disclosed increase in export volumes. No individual customer is assigned to a production line from this table, and procurement concentration is kept separate from sales concentration.

The company bought a 23% interest in China Composites Group from its related controlling group for CNY 87.05 million. Management described the investee's activities as filament-wound composites, wet-laid glass-fiber mat and boats, including pipes and storage tanks that use glass fiber as a main input. It presented the investment as an extension into downstream products; this is a minority equity interest, not a new wholly owned Jushi line or evidence of specific customer orders. The report says the company was the only transferee after the public listing at the Tianjin property exchange. The agreement was signed on 17 December 2004, shareholders approved it on 27 December and the transfer became effective on 31 December; payment was completed by year-end. Gains and losses between the 30 September valuation date and transfer date remained with the seller. The investment-account note separately records CNY 87.04943719 million as investment cost and a CNY 562.81 equity-investment difference amortised during the period. That accounting presentation is retained separately from the CNY 87.05 million transaction price, rather than silently changing one figure to match the other.

Other payables included CNY 22.11705777 million described as technical-development fees. The note says Jushi Group accrued these amounts at 3% of its sales under a historical Zhejiang provincial document for intended technical upgrading, and that the closing amount had been accrued but remained unused. This accounting balance is not evidence of CNY 22.11705777 million of research cash spending, a delivered technology project or a commercialised product. The disclosed proprietary furnace technology and commissioning dates must be assessed from their own project evidence; this unused accrual does not quantify their development cost or customer adoption.

For 2005 management intended to keep the core glass fiber business operating efficiently and seek capital-market refinancing to support its development. It also planned stronger integration of subsidiaries, more formal business processes and broader budget management. These were proposed actions in the 2004 report. The plan does not establish that financing was completed or that any future line had already reached production.

At the 2004 close BNBM Group held 161,493,120 shares, or 37.79%, and was the direct controlling shareholder; its owner, China National Building Material Group, was the ultimate controller. Zhenshi held 22.26%, and China Building Materials and Equipment Import and Export Corporation held 2.38%. The annual report then describes an administrative transfer of BNBM's 37.79% block on 4 January 2005 and confirms transfer registration on 4 February 2005. Following that transfer the import/export corporation held 171,669,120 shares, or 40.17%, and BNBM no longer held shares in the listed company. The ultimate controller did not change. The report's two ownership diagrams distinguish the reporting-period structure from the later structure current when the filing was prepared. The later 40.17% direct holding is therefore a subsequent event, not the 31 December 2004 holding, and the transfer does not itself establish a new factory or operating-capacity addition.

Borrowing relied on guarantees at several levels. The borrowing and related-party tables identify guarantees given by the listed parent, Jushi Group, Zhenshi and BNBM for different borrowers. The contingency note describes a parent guarantee for Xiling originally covering CNY 20.55 million of long-term borrowing; its disclosed loan balance at 31 December 2004 was CNY 17.95 million. Counter-guarantees and asset collateral are described, but the report does not establish that they eliminate the parent's obligation. For Jushi Group, the detailed contingency note gives outstanding borrowing of CNY 15.10 million, USD 2.60 million and CNY 65.7631 million under separate parent-guaranteed contracts, whereas the borrowing tables classify the parent-guaranteed loans differently. The schedules cannot be reconciled into one verified total from this filing alone. A Jiujiang contract with a CNY 160 million guarantee ceiling quotes a CNY 139 million loan balance explicitly dated 31 December 2003, not 2004. Another Jiujiang facility has a CNY 25 million ceiling and a CNY 20 million loan balance at 31 December 2004. The business discussion separately reports CNY 130.332926 million of direct outgoing guarantees plus CNY 89.8509 million of subsidiary outgoing guarantees weighted by ownership, for a stated total of CNY 220.183826 million and 34.82% of the company's net assets. Those printed components add arithmetically, but the total uses the issuer's ownership-weighted methodology and is not a simple sum of every borrowing or contract table. We retain that reported total while marking its detailed schedule reconciliation unresolved. Contract ceilings, actual loan balances, currencies and guarantee-provider roles remain distinct; counter-guarantees and the issuer's statement that it had no irregular guarantees do not establish that contingent exposure was eliminated.

Closing subsidiary-guarantee balance / 2004 / issuer reported direct outgoing guarantees

RMB 130,332,926

Closing subsidiary-guarantee balance / 2004 / issuer reported ownership weighted subsidiary outgoing guarantees

RMB 89,850,900

Closing subsidiary-guarantee balance / 2004 / issuer reported direct plus weighted subsidiary guarantees

RMB 220,183,826

Reported guarantee net assets ratio / 2004 / issuer reported guarantees to company net assets

34.82%

During 2004 the company implemented its distribution for 2003: one bonus share and one share converted from capital reserve for every ten existing shares, plus CNY 0.50 cash per ten shares before tax. Each share component increased the share count by 35.616 million, taking the total from 356.160 million to 427.392 million. These stock distributions increased the number of shares without a fresh equity subscription payment. The shareholder record date was 29 June 2004, the ex-dividend date 30 June, new tradable shares listed on 1 July and the cash dividend was distributed on 6 July. At year-end, 284.928 million shares were non-tradable and 142.464 million tradable, a historical share structure rather than today's public float. The report also states there was no use of proceeds from a current or earlier equity fund raising during the reporting period. This completed distribution is separate from the next dividend proposal concerning 2004 earnings.

Reported shareholder share base / 2004 / issuer closing share count

427,392,000 shares

Reported reserve conversion shares / 2004 / issuer 2004 capital reserve share conversion

35,616,000 shares

Reported cash dividend per ten shares / 2004 / completed 2003 dividend paid in 2004

0.5 CNY/10 shares

On 3 March 2005 the board proposed a cash dividend concerning FY2004 earnings of CNY 0.50 per ten shares before tax, using the 427.392 million shares outstanding at 31 December 2004. The proposed total was CNY 21.3696 million. No capital-reserve conversion was proposed for that distribution. The report states that shareholder approval was still required before implementation. Although the historical accounts reflect the proposed amount within shareholders' equity, the proposal is a post-year-end decision, not evidence of cash paid during 2004 or proof of its later approval and payment.

Proposed annual cash dividend / 2005 / board proposed fy2004 cash dividend

RMB 21,369,600

Reported cash dividend per ten shares / 2005 / board proposed fy2004 cash dividend per ten shares

0.5 CNY/10 shares

The FY2004 consolidated statements report CNY 1,145.65374968 million of main-business revenue, compared with CNY 852.23100095 million in the preceding year. Main-business profit of CNY 338.79824233 million is revenue less CNY 804.54397167 million of cost and CNY 2.31153568 million of main-business taxes and surcharges. Operating profit was CNY 173.23509958 million. Investment income of CNY 8.19354494 million, subsidy income of CNY 11.45401252 million and net non-operating expenses bring profit before tax to CNY 191.99877196 million. After CNY 32.63387317 million of income tax and CNY 67.51879681 million of minority shareholders' earnings, the listed shareholders' net profit was CNY 91.84610198 million. The report gives CNY 87.00162418 million after excluding its stated non-recurring items; the reconciliation includes impairment reversals and tax/minority effects, so subsidies alone are not the net benefit to listed shareholders. The glass-fiber subsidiaries' own profits and the listed parent's investment earnings are different reporting layers, not extra earnings to add to these consolidated totals.

Reported business revenue / 2004 / consolidated main business revenue

RMB 1,145,653,749.68

Reported business cost / 2004 / consolidated main business cost

RMB 804,543,971.67

Reported consolidated operating profit / 2004 / consolidated operating profit

RMB 173,235,099.58

Reported profit before tax / 2004 / consolidated profit before tax

RMB 191,998,771.96

Profit attributable to subsidiary minority / 2004 / consolidated minority profit

RMB 67,518,796.81

Reported consolidated owner profit / 2004 / consolidated historical owner profit

RMB 91,846,101.98

Consolidated investment income or loss / 2004 / consolidated investment income

RMB 8,193,544.94

Consolidated operating cash inflow increased to CNY 475.97021621 million in 2004 from CNY 122.35969052 million. Management attributes better cash growth partly to sales collections, while the cash-flow supplement also reports inventory and operating-receivable reductions and increased operating payables. Cash paid for fixed, intangible and other long-lived assets was CNY 858.53059141 million, with CNY 90.05 million separately paid for investments. These are cash categories, not the construction carrying balance or a budget assigned to either new furnace. Net investing outflow was CNY 911.07149274 million, exceeding the year's operating inflow. Net financing supplied CNY 565.73593502 million: borrowing receipts were CNY 1,527.66322899 million and repayments CNY 936.26259146 million; capital contributions supplied CNY 72.49921543 million. The CNY 98.21244325 million distribution-and-interest payment combines dividends, profits and interest. Including a negative CNY 0.53045723 million currency effect, the cash increase was CNY 130.10420126 million. Closing short-term borrowings were CNY 684.87 million and long-term borrowings CNY 563.76220060 million, with a separate CNY 96.312 million current portion of long-term liabilities. These dated debt lines differ from gross borrowing receipts, all group liabilities and guarantee exposures, and do not alone establish unrestricted liquidity.

Reported operating cash flow / 2004 / consolidated operating cash

RMB 475,970,216.21

Reported cash capital expenditure / 2004 / consolidated long lived asset acquisition cash

RMB 858,530,591.41

Reported cash investment payments / 2004 / consolidated investment payment cash

RMB 90,050,000

Reported investing cash flow / 2004 / consolidated investing net cash

RMB -911,071,492.74

Reported financing cash flow / 2004 / consolidated financing net cash

RMB 565,735,935.02

Reported cash borrowing receipts / 2004 / consolidated new borrowing cash

RMB 1,527,663,228.99

Reported cash debt repayments / 2004 / consolidated debt repayment cash

RMB 936,262,591.46

Reported cash fx effect / 2004 / consolidated exchange effect

RMB -530,457.23

Reported cash change / 2004 / consolidated cash change

RMB 130,104,201.26

Reported short-term borrowings / 2004 / consolidated short term borrowings

RMB 684,870,000

Reported long term borrowings / 2004 / consolidated long term borrowings

RMB 563,762,200.6

The parent's operating cash flow was negative CNY 22.51631301 million. Cash received for investment income was CNY 21.62908499 million, much lower than its CNY 94.18619347 million accounting investment income; the two figures measure different things. Investment payments of CNY 166.4974 million, investment recoveries of CNY 21.58686111 million and the other stated items resulted in a CNY 123.29186390 million net investing outflow. The parent received CNY 298 million from borrowing and repaid CNY 110 million of debt. After CNY 25.19493393 million of combined dividend, profit-distribution and interest payments, financing produced CNY 162.80506607 million. Together these cash-flow categories increased cash and cash equivalents by CNY 16.99688916 million. The large other-operating cash receipts and payments in the parent statement are not all sales collections or factory procurement; group and parent cash flows should be read separately.

Reported operating cash flow / 2004 / parent only operating cash

RMB -22,516,313.01

Reported investing cash flow / 2004 / parent only investing cash

RMB -123,291,863.9

Reported financing cash flow / 2004 / parent only financing cash

RMB 162,805,066.07

Reported cash investment payments / 2004 / parent only investment payment cash

RMB 166,497,400

Reported cash borrowing receipts / 2004 / parent only borrowing cash

RMB 298,000,000

Reported cash debt repayments / 2004 / parent only debt repayment cash

RMB 110,000,000

Consolidated gross trade receivables were CNY 304.42011560 million at 31 December 2004, against CNY 298.96364460 million a year earlier. Bad-debt allowance of CNY 18.88739366 million left a net balance of CNY 285.53272194 million; the preceding-year net balance was CNY 279.89584337 million after CNY 19.06780123 million of allowance. The report classifies 81.06% of the gross closing balance as less than one year old. Age is not the same as a contractual overdue assessment. The five largest accounts totalled CNY 113.64644785 million, or 37.33% of gross trade receivables. This year-end balance concentration differs from the five largest customers' 38.20% share of annual sales. Gross other receivables of CNY 29.81127884 million, less CNY 10.20548233 million of allowance, left CNY 19.60579651 million net. Their preceding-year gross and allowance were CNY 167.35340734 million and CNY 11.69163877 million, respectively. The large reduction includes the separately described debt-to-equity conversion, so it cannot all be treated as cash collection. These measures explain credit exposure without assigning balances to a particular production line or asserting full recoverability.

Reported gross trade receivables / 2004 / consolidated historical trade receivables gross

RMB 304,420,115.6

Reported gross trade receivables / 2003 / consolidated historical trade receivables gross comparative 2003

RMB 298,963,644.6

Reported trade-receivable allowance / 2004 / consolidated historical trade receivables allowance

RMB 18,887,393.66

Reported trade-receivable allowance / 2003 / consolidated historical trade receivables allowance comparative 2003

RMB 19,067,801.23

Reported net trade receivables / 2004 / consolidated historical trade receivables net

RMB 285,532,721.94

Reported net trade receivables / 2003 / consolidated historical trade receivables net comparative 2003

RMB 279,895,843.37

Reported gross other receivables / 2004 / consolidated historical other receivables gross

RMB 29,811,278.84

Reported gross other receivables / 2003 / consolidated historical other receivables gross comparative 2003

RMB 167,353,407.34

Reported other-receivable allowance / 2004 / consolidated historical other receivables allowance

RMB 10,205,482.33

Reported other-receivable allowance / 2003 / consolidated historical other receivables allowance comparative 2003

RMB 11,691,638.77

Reported other receivables net / 2004 / consolidated historical other receivables net

RMB 19,605,796.51

Reported other receivables net / 2003 / consolidated historical other receivables net comparative 2003

RMB 155,661,768.57

Reported top five receivable balance / 2004 / consolidated top five trade receivables gross

RMB 113,646,447.85

Consolidated prepayments were CNY 28.29950728 million, down from CNY 34.62509085 million. The largest individual advance was CNY 9.20 million to the Tongxiang development-zone authority for land; the other major named advances concerned fuel or materials. These amounts are outstanding advance balances, not the year's total project expenditure. The intangible-asset note separately records CNY 20 million paid for land associated with project 208; the two disclosures are not assumed to be the same outstanding amount. Closing inventory fell from CNY 183.50552298 million to CNY 150.83881805 million, but its composition changed: raw materials rose from CNY 44.11393968 million to CNY 76.08463621 million, while finished goods fell from CNY 134.80981469 million to CNY 66.66280039 million. The remaining balance includes packaging, consumables, semi-finished goods and goods on consignment. The company reported no inventory impairment provision at year-end. That accounting judgement and the decline in finished goods do not by themselves prove customer acceptance, cash receipt or the absence of obsolescence risk.

Reported supplier prepayments / 2004 / consolidated supplier and construction advances

RMB 28,299,507.28

Reported supplier prepayments / 2003 / consolidated supplier and construction advances comparative 2003

RMB 34,625,090.85

Reported net inventory / 2004 / consolidated historical inventory net

RMB 150,838,818.05

Reported net inventory / 2003 / consolidated historical inventory net comparative 2003

RMB 183,505,522.98

Reported raw material inventory / 2004 / consolidated raw material inventory

RMB 76,084,636.21

Reported raw material inventory / 2003 / consolidated raw material inventory comparative 2003

RMB 44,113,939.68

Reported net inventory category / 2004 / consolidated finished goods inventory

RMB 66,662,800.39

Reported net inventory category / 2003 / consolidated finished goods inventory comparative 2003

RMB 134,809,814.69

Consolidated monetary funds rose from CNY 172.62096662 million to CNY 302.72516788 million. The note attributes the increase to higher sales collections and bank borrowing. Its CNY 46.45984414 million of other monetary funds included CNY 18.90478919 million of bank-draft guarantee deposits at BNBM Technology, CNY 19.69101310 million in the parent's securities account and a CNY 7 million Jiujiang term deposit; the remainder included letter-of-credit deposits. These descriptions identify the purposes of particular balances without establishing that all are unavailable or all are freely deployable for manufacturing expansion. The reported monetary-funds total, project funding needs and unrestricted cash are therefore distinct concepts. No unsupported unrestricted-cash total is calculated.

Reported monetary funds / 2004 / consolidated historical monetary funds

RMB 302,725,167.88

Reported monetary funds / 2003 / consolidated historical monetary funds comparative 2003

RMB 172,620,966.62

Reported other monetary funds / 2004 / consolidated historical other monetary funds

RMB 46,459,844.14

The tax note states a 15% income-tax rate for the listed parent. Jushi Group's foreign-invested-enterprise incentive began on 1 July 2001 and comprised two exemption years followed by three half-rate years; the report calls 2004 its second half-rate year and states an actual 13.2% tax burden after the reduction. For Jiujiang's newly expanded lines, income tax was first collected lawfully and the local retained portion was then rewarded back: 100% for 2004-2008 and 50% for 2009-2013 under the cited historical arrangement. This was not an exemption from all taxes. Consolidated subsidy income was CNY 11.45401252 million: CNY 9.05098582 million of fiscal subsidies, CNY 1.83458070 million of VAT relief and CNY 0.568446 million of other subsidies. The fiscal component included Jushi's CNY 1.637279 million of interest support, CNY 0.431 million industrial-investment award and CNY 4.366 million fiscal assistance, plus CNY 2.61670682 million rewarding Jiujiang's January-June local retained income tax. The VAT amount concerned Junan Cement's fly-ash hollow and solid blocks under a 2004-2005 arrangement; it cannot be applied to all glass-fiber sales. These historical, activity-specific measures help explain earnings and financing support, but their gross recognised amounts are not the net benefit to listed shareholders or necessarily the same period's cash receipts. They establish no current tax rate or continuing entitlement.

The FY2004 report restates its 2003 comparison following Jushi Group's CNY 2.00381982 million additional 2003 income-tax settlement. The consolidated adjustment increased tax payable and income-tax expense by that amount and reduced minority earnings and interests by CNY 0.87146125 million. The resulting CNY 1.13235857 million reduction in the listed shareholders' preceding-year profit and opening retained earnings moves reported 2003 net profit from CNY 71.25521967 million to CNY 70.12286110 million. The parent comparison also reduced investment income, long-term equity investments and retained earnings by CNY 1.13235857 million. This is a correction to the prior-year comparison reported in the 2004 filing, not an additional 2004 manufacturing expense or evidence of a new current tax rate. Historical FY2003 source figures remain separately traceable; comparisons must specify whether they use the original or restated basis.

Comparative owner profit / 2003 / consolidated owner profit restated comparative 2003

RMB 70,122,861.1

Huazheng's audit report dated 3 March 2005 gives an unmodified opinion on the 2004 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. This historical basis is retained; no IFRS restatement or automatic comparability with later standards is implied. Financial-statement audit is separate from independent review of the site's English explanations and translations. Parent financial statements and consolidated operations remain separately scoped.

The listed company held 56.51% of Jushi Group's registered capital at the end of 2004, after a USD 17 million capital increase brought Jushi's registered capital to USD 46.9516 million. Its other registered owners were Zhenshi at 15.10% and SUREST FINANCE LIMITED at 28.39%. Jushi Group in turn held 99% of Jushi Jiujiang, 57% of Jushi Chengdu and 75% of the Jiaxing glass-fiber composite-materials subsidiary. These are ownership at different levels, rather than four direct holdings of the listed parent. Jushi Chengdu, established in April 2004 with CNY 75 million of registered capital, entered the consolidated income statements for April–December. The report gives Chengdu year-end assets of CNY 316.61986611 million, net assets of CNY 76.69042709 million and profit of CNY 1.69042709 million for that period. BNBM Technology, 95% held by the listed company, also formed Shangmei Home Furnishings in April; Shangmei's income was consolidated for April–December. The new subsidiaries change the perimeter of the group comparison. Their reported assets and profits are already within consolidation and must not be added again to the group's totals.

Reported consolidated total assets / 2004 / jushi chengdu reported assets

RMB 316,619,866.11

Reported net profit / 2004 / jushi chengdu reported profit april december

RMB 1,690,427.09

The parent-company accounts describe the listed company's investment layer separately from the manufacturing group. They record no main-business revenue in 2004, but CNY 4.52657728 million of other-business profit from engineering subcontracting. After administration and finance expenses, the parent reported an operating loss of CNY 9.78890101 million. Investment income of CNY 94.18619347 million was the main support for parent net profit of CNY 84.97013246 million; the profit bridge also includes net non-operating income of CNY 36.13 and a negative income-tax expense of CNY 0.57280387 million. Within the equity-investment notes, the current profit adjustment for Jushi Group was CNY 79.81518747 million. The parent's closing long-term equity-investment carrying value was CNY 674.53340417 million, after impairment and the historical equity-investment differences shown in the filing. These accounting earnings and balances are not equivalent to cash remitted by subsidiaries, and they are not additional consolidated profit.

Operating profit / 2004 / parent only operating profit

RMB -9,788,901.01

Consolidated investment income or loss / 2004 / parent only investment income

RMB 94,186,193.47

Reported net profit / 2004 / parent only net profit

RMB 84,970,132.46

Equity method result / 2004 / parent only jushi profit adjustment

RMB 79,815,187.47

Long term investments net / 2004 / parent only long term equity investments

RMB 674,533,404.17

The business discussion reports Jushi Group assets of CNY 2,276.85 million and annual net profit of CNY 141.24 million. Jushi develops, produces and sells glass fiber and related products; the listed company held 56.51%. The same discussion reports CNY 28.03 million of assets and CNY 0.42 million of net profit for its 80%-held Luxin Home Market, which operated a building-materials market and commercial property. BNBM Technology, 95% held, had CNY 161.57 million of assets and CNY 6.67 million of net profit; its stated activities included new-material development, production and sales, distribution and industrial investment. BNBM Logistics, only 20% held, had CNY 839.58 million of assets and CNY 30.10 million of net profit. Its activities included home-product distribution, chain operations and logistics, commercial property and import/export trade. These are the filing's rounded figures for the named operating companies and investee, not additional listed-shareholder earnings. The discussion does not specify the individual financial-statement perimeter behind each figure. In particular, the full assets and earnings of the 20%-held logistics investee must not be added to consolidated totals. The company's historical business included property and distribution alongside glass fiber; later business boundaries should not be projected back onto 2004.

Reported consolidated total assets / 2004 / jushi group management reported

RMB 2,276,850,000

Reported net profit / 2004 / jushi group management reported

RMB 141,240,000

Reported consolidated total assets / 2004 / luxin home market management reported

RMB 28,030,000

Reported net profit / 2004 / luxin home market management reported

RMB 420,000

Reported consolidated total assets / 2004 / bnbm technology management reported

RMB 161,570,000

Reported net profit / 2004 / bnbm technology management reported

RMB 6,670,000

Reported consolidated total assets / 2004 / bnbm logistics management reported

RMB 839,580,000

Reported net profit / 2004 / bnbm logistics management reported

RMB 30,100,000

The related-party note reports CNY 228.85896931 million of 2004 goods and service sales to a US company named only in Chinese in that table, compared with CNY 159.90352606 million in 2003. Its year-end receivable was CNY 71.87381087 million, or the reported 23.61% of gross trade receivables. The relationship note says it shared a legal representative with Jushi Group's foreign shareholder; it is not listed as a controlled subsidiary. The separate related-funds review shows the same closing balance and records CNY 232.12547343 million of reductions in the trading account during 2004. Those reductions are not described here as confirmed cash receipts. A different table lists GIBSON ENTERPRISES INC with CNY 74.99281828 million among the five largest trade-receivable accounts. This filing does not establish the English legal name of the Chinese-named US related party or explain the difference between these balances. The two records therefore remain separate. The business discussion explicitly describes the Chinese-named related party as Jushi Group's exclusive US distributor, reports a 90-day sales settlement term and says individual contracts used prevailing market prices for comparable products. It gives the related sales as 22.93% of similar transactions, a different denominator from the 23.61% receivable share. These are the issuer's disclosed channel and pricing terms, not proof of final-customer orders, confirmed receipt on the due date or the absence of credit risk.

Consolidated gross other receivables fell from CNY 167.35340734 million to CNY 29.81127884 million. The note attributes the reduction mainly to conversion of a CNY 59.398 million Nanjing Jinbang property-development receivable into equity and collections from three other group-related counterparties. The conversion was non-cash: it gave the listed company 27.17% of Nanjing Jinbang after the January 2004 capital increase, with the amended business licence obtained on 6 February. The transaction recognised CNY 3.26509499 million in capital reserve under the historical accounting treatment. A falling receivable balance therefore does not mean all funds were collected. The parent still reported CNY 160.08344767 million of gross other receivables, including CNY 159.54640610 million of inter-company or other unit settlements, with CNY 22.33697094 million of bad-debt allowance. That parent total is a different reporting perimeter from consolidated other receivables. The consolidated notes also retained CNY 7.0517 million due from Xiling, fully provided because of its long age; the allowance does not establish recovery or settle the separate guarantee exposure.

The consolidated fixed-asset notes report CNY 1,629.01209835 million of net fixed assets at year-end, including CNY 644.43492302 million transferred from construction in progress during 2004. Accounting transfer is distinct from project cash payments or a capacity measure. The report says several subsidiaries had not obtained building certificates because related land-use rights were not yet held. For Jushi Group it prints original building value of CNY 226.0045 million and net value of CNY 14.1913 million in that discussion. These unusual amounts have been checked against the original PDF and are retained as printed; their relationship is not independently explained. The land-use note also describes unfinished title transfer for land acquired from Zhenshi, land in the Tongxiang development zone and the 200,000-square-metre land contribution to Jushi Chengdu. The Chengdu shareholder's promise to complete formalities within six months is a commitment, not evidence that the title was completed by the reporting date. The filing also identifies Jushi property and equipment securing CNY 8 million and CNY 78 million of short-term loans. These are historical title and collateral conditions, not proof of shutdown or a current legal defect.

The notes describe a CNY 10 million commercial acceptance bill that had matured without payment by the reporting date; the counterparty then issued another CNY 10 million bill. Reissuing the bill is not cash settlement. At 31 December 2004 the note lists CNY 16.28763224 million of bank acceptance bills and CNY 10 million of commercial acceptance bills. Those components sum to CNY 26.28763224 million, matching the balance-sheet amount, but the note's printed total line is CNY 6.28763224 million. Both source locations have been checked against the original PDF. The discrepancy is retained, and no corrected note total is presented as an issuer-confirmed figure. This also does not identify the issuer of the unpaid commercial bill or link it to the US receivable accounts.

Management reported that the 40,000-tonne alkali-free line began production in August 2004 and the 30,000-tonne medium-alkali line in September, taking total reported glass-fiber capacity above 210,000 tonnes. These late-year start dates limit how much of annual design capacity can be assumed to contribute to that year's output. The borrowing note attributes higher long-term borrowing to Jushi Group's 40,000-tonne alkali-free investment and Jushi Chengdu's 30,000-tonne medium-alkali investment. The consolidated construction ledger began the year at CNY 9.01798550 million, added CNY 644.59292872 million and transferred CNY 644.43492302 million to fixed assets; after CNY 0.08787310 million of other transfers it closed at CNY 9.08811810 million. Capitalised interest of CNY 11.16157339 million is included in the reported additions and transfers, not extra spending to add again. Project 208 transferred CNY 367.49805843 million and project 209 CNY 272.66370526 million to fixed assets, each with no closing construction balance. The filing does not explicitly equate those ledger codes to the two named capacity lines, so the accounting figures are not allocated to either line. Ledger additions and transfers differ from cash capital expenditure, approved project budgets and incremental annual capacity.

Reported construction opening balance / 2004 / consolidated cip opening

RMB 9,017,985.5

Reported construction carrying-value additions / 2004 / consolidated cip additions

RMB 644,592,928.72

Reported construction transfer to fixed assets / 2004 / consolidated cip fixed asset transfers

RMB 644,434,923.02

Reported construction closing balance / 2004 / consolidated cip closing

RMB 9,088,118.1

Reported cip ledger capitalized interest / 2004 / consolidated cip capitalized interest

RMB 11,161,573.39