China Jushi FY2004: Manufacturing bases

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.