China Jushi FY2007: Projects and construction progress

The FY2007 report listed four non-fundraising investment projects with expected commissioning during 2008. Two were separately listed 140,000-tonne-per-year alkali-free glass-fiber tank-furnace drawing projects at Tongxiang: the first had a stated investment amount of CNY 1.6749234 billion and was expected to start production before the end of June 2008; the second had CNY 1.750087 billion and a deadline before the end of August 2008. Chengdu plans comprised a 40,000-tonne alkali-free line with imports of key equipment, CNY 488.6437 million and an expected start before the end of March 2008, and a 60,000-tonne medium-alkali line, CNY 611.781 million and an expected start before the end of July 2008. These source amounts describe the listed investment plans, rather than cash spent during FY2007. Their dates were expectations recorded in this report, not evidence of subsequent commissioning. The report does not assign line numbers to these four entries. The two similar Tongxiang descriptions are kept distinct, and the planned Chengdu 40,000-tonne project is not equated merely by capacity with the Chengdu project already described as commissioned in FY2007.

The construction note separately identifies Jushi Group project 215 as a 120,000-tonne production line and Chengdu projects 214 and 217 as 40,000-tonne production lines. During FY2007, CNY 904.766 million for project 215, CNY 3.773 million for 214 and CNY 467.123 million for 217 were transferred to fixed assets; each had no closing construction balance. A transfer is an accounting classification and does not supply an exact commissioning date or prove that the three amounts were incremental capacity delivered during the year. Two Jushi Group 140,000-tonne entries remained separately recorded: project 216 closed at CNY 725.914 million and project 218 at CNY 2.105 million. Project 216 had CNY 820.076 million of annual additions and CNY 94.162 million of reductions, with no transfer to fixed assets in that reduction column. Across all projects, construction in progress moved from CNY 34.315 million to CNY 743.741 million after CNY 2.215 billion of additions and CNY 1.505 billion of reductions; transfers to fixed assets were only part of the reductions. Project codes, closing balances and planned capacities are different identifiers and measures, so these rows are not assigned to later numbered lines without explicit supporting evidence.

Reported construction opening balance / 2006 / fy2007 all construction opening

RMB 34,314,505.75

Reported construction closing balance / 2007 / fy2007 all construction closing

RMB 743,741,072.28

Reported construction carrying-value additions / 2007 / fy2007 all construction additions

RMB 2,214,709,238.84

Reported construction transfer to fixed assets / 2007 / fy2007 all construction transfers

RMB 1,411,120,562.63