China Jushi FY2005: Markets, customers and suppliers

Glass fiber and related products generated RMB 1.3351101 billion in main-business revenue. The report gives a main-business profit rate of 32.19% for that category. Export revenue across the reported group businesses was RMB 781.3487 million, representing 53.36% of main-business revenue. Domestic revenue was RMB 682.8406 million, or 46.64%. The historical table's own profit terminology is retained rather than equating it to a later accounting measure without reconciliation.

The revenue note reports glass-fiber products at CNY 1,335.110 million in 2005, up from CNY 997.920 million in 2004, while other products declined from CNY 147.733 million to CNY 129.079 million. These categories together make up the group's CNY 1,464.189 million main-business revenue. Glass-fiber product costs were CNY 905.299 million, versus CNY 690.740 million a year earlier; other-product costs were CNY 92.431 million, versus CNY 113.804 million. The business discussion gives a rounded 32.19% margin for glass fiber. Product revenue less product cost is not the historical consolidated main-business-profit figure: the latter also deducts CNY 4.281 million of main-business taxes and surcharges. Domestic main-business revenue rose from CNY 550.214 million to CNY 682.841 million and self-operated export revenue from CNY 595.440 million to CNY 781.349 million. Those geographic totals cover all main-business products, not just glass fiber, and are sales classifications rather than manufacturing-site locations. Management attributes main-business growth principally to Jushi Group's expanded production scale and higher sales volumes.

Reported glass-fiber and related-product revenue / 2005 / glass fiber product revenue

RMB 1,335,110,130.46

Reported glass-fiber and related-product cost / 2005 / glass fiber product cost

RMB 905,298,872.47

Reported glass-fiber and related-product revenue / 2005 / other product revenue

RMB 129,079,158.1

Reported glass-fiber and related-product cost / 2005 / other product cost

RMB 92,431,025.39

Reported domestic main-business revenue / 2005 / consolidated domestic main business revenue

RMB 682,840,612.45

Reported foreign main-business revenue / 2005 / consolidated self operated export revenue

RMB 781,348,676.11

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

RMB 997,920,335.86

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

RMB 690,740,333.13

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

RMB 147,733,413.82

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

RMB 113,803,638.54

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

RMB 550,214,221.53

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

RMB 595,439,528.15

Management says its sales network served customers in more than 40 countries. It held an annual customer meeting at the Tongxiang base in October or November to discuss the following year's orders. The top five customers accounted for 34.97% of sales. The network description explains the route to market, while the concentration measure describes the annual sales base. Neither identifies a named customer for every product or a guaranteed order book.

The report describes a related US company as Jushi Group's exclusive distributor in the United States. Related sales were CNY 291.117 million during 2005, compared with CNY 228.859 million in 2004. The business discussion places 2005 sales at 21.80% of transactions of the same type; this is not the group-wide export share or the top-five customer share. At year end the related-party note records CNY 79.179 million receivable from that distributor, or 20.65% of gross trade receivables. That closing credit concentration uses a different denominator from annual sales. The relationship note says the distributor shared a legal representative with a foreign shareholder of Jushi Group; it does not classify the distributor as a consolidated subsidiary. The major-debtor table separately prints GIBSON ENTERPRISES INC for the same receivable amount, whereas the related-party sections give a Chinese-rendered name. The matching balance is preserved as naming evidence without treating it as conclusive verification of the legal English name. Market-based pricing and fairness are management's stated policies, rather than independent assurance on the transactions or collection.