China Jushi FY2008: Business overview

China Fiberglass, the listed predecessor of China Jushi, controlled 51% of Jushi Group, its principal glass fiber manufacturing business. Management reported annual glass fiber capacity above 900,000 tonnes after four lines entered production in 2008. Consolidated revenue increased from CNY 3.201 billion to CNY 4.008 billion, while operating profit fell from CNY 703.71 million to CNY 609.78 million. Management described the financial crisis, higher raw-material and fuel costs, currency appreciation and reduced export rebates as operating pressures. The capacity total describes production capability; it does not establish actual output, utilisation or sales from each line.

Reported business revenue / 2008 / consolidated total original vintage fy2008

RMB 4,008,368,540.67

Reported consolidated operating profit / 2008 / consolidated total original vintage fy2008

RMB 609,779,286.14

Reported business revenue / 2007 / consolidated total original vintage fy2007

RMB 3,200,867,436.59

Reported consolidated operating profit / 2007 / consolidated total original vintage fy2007

RMB 703,709,845.98

Management identified exchange rates, export rebates, energy prices and product-price competition as operating pressures. It reported that the glass fiber export rebate had been cut from 13% to 5% in the second half of 2007, and identified a possible further reduction as a risk rather than an announced change. Production required natural gas, electricity and oxygen. Its proposed responses included adjusting processes and raw-material formulations, buying some materials and equipment abroad, increasing domestic sales, improving energy procurement and reducing product and logistics costs. The 2009 plan also called for stronger marketing, upstream and downstream integration, and development and application of new formulations, products and technologies. These are management's historical risk assessments and planned responses; the report does not establish their subsequent implementation or results.