China Jushi FY2008: Markets, customers and suppliers

The geographic revenue table records CNY 1.792 billion of domestic sales and CNY 2.217 billion of foreign sales; together they equal consolidated revenue of CNY 4.008 billion. Foreign sales therefore accounted for about 55.3% of that total. Management described customer relationships in more than 70 countries, without allocating individual customer sales to the newly commissioned lines. The top five customers contributed CNY 839.79 million: 20.95% of total revenue in the management discussion, but 21.85% of main-business revenue in the financial note. The different percentages reflect different stated revenue denominators and should not be treated as two different customer totals.

Reported business revenue / 2008 / domestic consolidated total fy2008

RMB 1,791,851,504.2

Reported business revenue / 2008 / foreign consolidated total fy2008

RMB 2,216,517,036.47

Reported top five customer sales / 2008 / consolidated top five sales fy2008

RMB 839,792,565.76

Reported top five customer share / 2008 / consolidated total denominator fy2008

20.95%

Reported top five customer share / 2008 / main business denominator fy2008

21.85%

The related-party transaction table reports finished-goods sales of CNY 262.19 million to Tongxiang Hengshi Fiber Industry in 2008, compared with CNY 110.96 million in 2007. It also lists CNY 87.98 million to CNBM Group Import and Export and CNY 7.05 million to Lianyungang Zhongfu Lianzhong Composites, compared with CNY 89.88 million and CNY 6.12 million respectively in 2007. These disclosed sales describe named related-party commercial relationships, complementing the aggregate customer-concentration table. They do not identify the ultimate users of every product or allocate orders to particular production lines. The company describes pricing as based on market prices and the transactions as approved through its governance process; those are issuer statements rather than independent evidence that every transaction was on arm's-length terms.

Reported related sales / 2008 / consolidated related cnbm import export finished goods period 2008 as reported fy2008

RMB 87,975,759.15

Reported related sales / 2008 / consolidated related zhongfu lianzhong finished goods period 2008 as reported fy2008

RMB 7,047,657.63

Reported related sales / 2008 / consolidated related hengshi finished goods period 2008 as reported fy2008

RMB 262,189,698.08

Reported related sales / 2007 / consolidated related cnbm import export finished goods period 2007 as reported fy2008

RMB 89,880,046.56

Reported related sales / 2007 / consolidated related zhongfu lianzhong finished goods period 2007 as reported fy2008

RMB 6,122,715.5

Reported related sales / 2007 / consolidated related hengshi finished goods period 2007 as reported fy2008

RMB 110,956,410.91

The group purchased CNY 219.16 million of raw materials from Tongxiang Leishi Micro Powder and CNY 18.25 million from Tongxiang Juzhen Mining. It also purchased platinum-rhodium bushings and processing services worth CNY 169.43 million from Tongxiang Jinshi Precious Metal Equipment, and transportation services worth CNY 112.43 million from Zhejiang Yushi International Container. The annual report identifies these relationships within its related-party disclosures and labels the pricing policy as market price. That label is the issuer's reported policy, not independent evidence of arm's-length pricing. The transactions connect raw-material preparation, drawing equipment and product delivery to the manufacturing business; purchases are distinct from related-party advances, payables and sales.