China Jushi FY2006: Subsidiaries and invested companies

Subsidiary ownership and operations

The FY2006 ownership perimeter preceded the strategic-investor proposal

The FY2006 related-party ownership table reports a 59.90% interest in Jushi Group and 95% in Beixin Technology. It separately lists Jushi Group's operating subsidiaries, including a 99% interest in Jiujiang and 57% in Chengdu, and describes Panden as a Jushi Group joint venture. These layered holdings explain why a subsidiary's full revenue, asset or profit amount is not the listed issuer's attributable economic share. The 59.90% Jushi Group interest is the year-end position in this report; it should not be replaced with the 51% interest contemplated in the following post-year-end capital proposal. The operating and accounting perimeters must therefore be kept attached to their own periods when comparing the expansion across years.

Reported disclosureFY2006 annual report, p. 70 ↗

Reported equity interest / 2006 / fy2006 issuer interest jushi group 2006: 59.9 percent
Reported equity interest / 2006 / fy2006 issuer interest beixin technology 2006: 95 percent

Manufacturing earnings differed from shareholder earnings

Jushi Group, the glass-fiber and composite-materials manufacturing and sales business, reported CNY 4.882 billion of total assets and CNY 253.062 million of FY2006 net profit. The issuer held 59.90% of its registered capital at year end. Beixin Technology, 95%-owned and active in new materials, distribution and investment, reported CNY 210.377 million of assets and CNY 861,600 net profit. The substantially larger Jushi result identifies the principal earnings business, but it is not a separate amount to add to the consolidated group profit. The FY2006 consolidated statement deducts CNY 101.548 million of minority profit in arriving at CNY 136.050 million attributable to the listed shareholders. The subsidiary assets also overlap with the consolidated asset perimeter and must not be summed as additional group assets. Among associates, the 20% interest in Beixin Logistics concerned home-product distribution, chain operations, logistics and commercial-property activities; that company's disclosed assets were CNY 1.201 billion and net profit CNY 30.021 million. China Composites, held at 23%, combined materials manufacture with equipment, engineering and technical services and reported CNY 1.124 billion of assets and CNY 16.424 million net profit. Those are the associates' own totals, not the issuer's equity-method income or cash received. The report also describes small controlled home-furnishing market operations; their limited reported earnings do not change the manufacturing emphasis of this historical company profile.

Reported disclosureFY2006 annual report, p. 17 ↗FY2006 annual report, p. 31 ↗

Reported subsidiary assets / 2006 / fy2006 core jushi group own assets 2006: RMB 4,882,125,400
Reported subsidiary net profit / 2006 / fy2006 core jushi group own net profit 2006: RMB 253,061,800
Reported subsidiary assets / 2006 / fy2006 core beixin technology own assets 2006: RMB 210,376,800
Reported subsidiary net profit / 2006 / fy2006 core beixin technology own net profit 2006: RMB 861,600
Reported subsidiary assets / 2006 / fy2006 core beixin logistics associate own assets 2006: RMB 1,200,706,400
Reported subsidiary net profit / 2006 / fy2006 core beixin logistics associate own net profit 2006: RMB 30,020,800
Reported subsidiary assets / 2006 / fy2006 core china composites associate own assets 2006: RMB 1,123,503,300
Reported subsidiary net profit / 2006 / fy2006 core china composites associate own net profit 2006: RMB 16,424,100

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Sources and scope

What this guide establishes

This historical account covers the manufacturing business, products and geographic sales, process and commissioning claims, individual construction projects and plans, production assets and factory title conditions, working capital and cash, borrowing and interest, subsidiary and associate results, control and share reform, distributions and capital proposals, related commerce and funding, guarantees and recovery litigation, original parent/consolidated accounting, profit quality, historical tax and financial assurance. Capacity, annual output, sales, accounting balances, investment and cash retain their different meanings.
Material source differences are stated explicitly: project investment units/amounts, ignition and formal/trial production milestones, fabric units, printed cost growth, guarantee categories and amounts, dividend proposal/payment timing, investment amortization/impairment signs and accounting transition vintage. Their underlying evidence is preserved; the contradictory investment unit does not establish a reconciled project budget.
The FY2006 reporting vintage and closing holdings are retained. January2007 capital/trademark events and the opening-equity transition are separately dated; the limited transition review is not an audit or independent approval of this English account.
Exact coordinates, every permit/certificate, complete product specifications, actual annual line utilization and all customer orders are not established. Source-use basis and independent editorial review remain pending.
The year-end receivable balances retain this report's original consolidated scope; later comparative revisions remain separate. The Tongxiang total investment amount is specifically the page 20 disclosure, not a reconciled project budget or annual investment cash expenditure. The contradictory page 14 unit remains in the project account.

FY2006 full annual report ↗
Chinese / A-share / Chinese Accounting Standards / Published 2007-04-12
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