China Jushi | FY2009 business review

Management attributes the FY2009 decline to lower export volumes and lower glass-fiber selling prices in domestic and overseas markets. Consolidated revenue was CNY 3,170,935,643.57, down 20.89%, and the group reported a net loss of CNY 266,299,606.59. The loss attributable to shareholders of the listed company was CNY 154,769,883.68; the remaining CNY 111,529,722.91 was attributable to minority shareholders. These are different ownership scopes, rather than alternative estimates of the same loss. The report describes stronger domestic demand alongside weak overseas conditions, but does not provide a quantified bridge separating prices, volumes, product mix and ownership changes. Management also attributes higher administrative expenses to research and development and higher financing expenses to additional borrowing. Product revenue-cost margins therefore cannot stand in for the consolidated result after operating and funding costs.

Reported business revenue / 2009 / consolidated total

RMB 3,170,935,643.57

Reported consolidated net profit / 2009 / consolidated total

RMB -266,299,606.59

Reported owner net profit / 2009 / listed owner

RMB -154,769,883.68

Reported minority net profit / 2009 / consolidated minority

RMB -111,529,722.91

The report describes E6 as a newly developed high-performance glass fiber that was introduced to customers and rolled out across the company's major production lines during FY2009. It attributes improved strength and corrosion resistance, lower reliance on imported batch materials and lower formulation and environmental-treatment costs to the material. These are issuer claims; the passages do not supply a comparable numerical test series or a separately identified E6 revenue total. The issuer reports patent applications in 38 countries, which should not be described as 38 granted patents. Wind-energy facilities, seawater desalination and chemical-corrosion applications explain the intended uses, but do not prove orders or customer qualification in each market. Product development, production-line rollout and realized customer sales remain distinct stages.

The FY2009 technology account distinguishes acceptance of a provincial project for batch production of high-performance alkali-free glass-fiber roving for sheet molding compound from applications submitted for other technology projects. Development and improvement work also covered the BMC-572 product, powder-bonded chopped-strand mat, reinforcement for long-fiber polypropylene, composite insulators, high-pressure oil pipes, optical-cable strength cores, pultrusion, wind-energy reinforcement and chopped strands for thermoplastic and polyamide materials. These uses show the range of reinforcement problems being addressed. The list does not disclose separate sales, customer orders or production capacity for every product. Acceptance of a technology project is also different from acceptance of a commercial delivery.

The supplemental operating account says pure-oxygen combustion technology was applied to all production lines at the Tongxiang base in 2009. It describes changes to furnaces, combustion equipment and melting processes intended to replace heavy-oil combustion, reduce energy use and improve glass melting. The Tongxiang deployment scope should not be generalized to every overseas operation. Other measures included interchangeable gas-fuel arrangements, bushing redesign to extend service life, greater use of internally made chemical inputs, improved sizing application and heat recovery for ovens and steam. Precious-metal bushings are separately discussed in the accounting policy, which charges actual maintenance loss to production cost rather than ordinary depreciation. Technology deployment and maintenance policy help explain the production process; they do not establish a measured group-wide cost saving or a cash-spending allocation.

The FY2009 staffing table reports 8,443 employees, including 5,981 production staff and 1,159 technical staff. The remaining roles were sales, finance, administration and other management. This shows the reported workforce composition; the technical category does not establish an equivalent number of dedicated research employees or staffing at any particular plant. Separately, consolidated administration expense rose from CNY 214,426,505.83 to CNY 314,687,806.46. Management attributes the increase mainly to additional research and development spending. The table does not quantify research spending separately, so the entire expense increase cannot be recorded as a research budget. Personnel composition and the stated expense driver provide context for technical capability without establishing a measured productivity gain.

Staff count / 2009 / reported staffing table

8,443 people

Staff count / 2009 / reported production staff

5,981 people

Staff count / 2009 / reported technical staff

1,159 people

Reported administration expense / 2009 / consolidated

RMB 314,687,806.46

Glass fiber and its products generated CNY 3,038,992,611.00 of main-business revenue and CNY 2,605,558,394.28 of cost. The product table reports a 14.26% margin. Although the original heading describes an operating-profit margin, the listed figures measure revenue less product cost as a share of revenue; selling, administrative and financing expenses are separate in the consolidated accounts. The other-product category contributed CNY 38,367,390.00 of revenue and CNY 18,184,783.53 of cost, with a reported 52.60% margin. This smaller category does not describe the economics of the glass-fiber business or each advanced formulation. The annual category totals do not identify E6 revenue, realized selling prices, plant utilization or the profitability of individual yarn grades.

Reported business revenue / 2009 / glass fiber product main business

RMB 3,038,992,611

Reported business cost / 2009 / glass fiber product main business

RMB 2,605,558,394.28

Reported business revenue / 2009 / other product main business

RMB 38,367,390

Reported business cost / 2009 / other product main business

RMB 18,184,783.53

Reported product revenue cost margin / 2009 / glass fiber product main business

14.26%

Reported product revenue cost margin / 2009 / other product main business

52.6%

Main-business revenue of CNY 3,077,360,001.00 and other-business revenue of CNY 93,575,642.57 reconcile to consolidated revenue of CNY 3,170,935,643.57. Their costs of CNY 2,623,743,177.81 and CNY 81,972,846.77 reconcile to consolidated cost of CNY 2,705,716,024.58. Glass-fiber and other-product sales are components of main business. They are not the same categories as other-business income, which includes CNY 76,607,369.78 of materials sales and CNY 16,968,272.79 in a residual category. Product and geographical splits are alternative views of main business, and must not be added together. These distinctions prevent a materials-sale line or geographical total from being mistaken for additional fiber sales.

Reported business revenue / 2009 / consolidated main business

RMB 3,077,360,001

Reported business revenue / 2009 / consolidated other business

RMB 93,575,642.57

Reported business cost / 2009 / consolidated main business

RMB 2,623,743,177.81

Reported business cost / 2009 / consolidated other business

RMB 81,972,846.77

Reported business cost / 2009 / consolidated total

RMB 2,705,716,024.58

Reported business revenue / 2009 / materials other business

RMB 76,607,369.78

Reported business revenue / 2009 / residual other business

RMB 16,968,272.79

The FY2009 filing retrospectively corrected a FY2008 income-tax estimate after final tax settlement. Additional tax was CNY 3,717,325.70 for Jushi Group and CNY 3,719,243.43 for Jushi Jiujiang, totaling CNY 7,436,569.13. The correction reduced opening retained earnings attributable to the parent by CNY 3,792,650.25 and minority equity by CNY 3,643,918.88. It also reduced comparative FY2008 profit attributable to listed shareholders from CNY 244,417,271.24 to CNY 240,624,620.99. These are revised FY2008 figures disclosed in the FY2009 filing, rather than a FY2009 operating expense. The summary retains unchanged comparative revenue and operating cash flow, but restates owner profit and equity. Comparisons should therefore identify which filing and restatement basis they use. The original FY2008 disclosure remains a separate historical source.

Prior period tax correction / 2008 / jushi group 2008 restatement

RMB 3,717,325.7

Prior period tax correction / 2008 / jiujiang 2008 restatement

RMB 3,719,243.43

Prior period tax correction / 2008 / consolidated 2008 restatement

RMB 7,436,569.13

Comparative owner profit / 2008 / 2008 restated in fy2009

RMB 240,624,620.99

The issuer reports a FY2009 loss attributable to listed shareholders of CNY 154,769,883.68. Its separate nonrecurring-result schedule identifies a pretax subtotal of CNY 145,555,365.33, led by CNY 91,020,169.05 of qualifying government grants and CNY 52,104,133.05 from trading assets and related disposals. After a CNY 10,139,095.69 tax adjustment and CNY 63,498,846.22 attributable to minority interests, the positive owner portion was CNY 71,917,423.42. Excluding those issuer-classified items, the owner loss was CNY 226,687,307.10. The grant subset differs from total subsidy income, and the trading category differs from total investment income, which also includes investee losses. This schedule helps distinguish the reported shareholder result from its nonrecurring support. It is an accounting classification, not a measure of manufacturing cash generation or proof that the items can never recur.

Reported nonrecurring grant income / 2009 / consolidated qualifying grants

RMB 91,020,169.05

Nonrecurring trading result / 2009 / consolidated trading disposal category

RMB 52,104,133.05

Nonrecurring subtotal / 2009 / consolidated pretax

RMB 145,555,365.33

Nonrecurring tax adjustment / 2009 / consolidated nonrecurring

RMB -10,139,095.69

Nonrecurring minority adjustment / 2009 / consolidated nonrecurring aftertax

RMB -63,498,846.22

Nonrecurring owner result / 2009 / consolidated owner aftertax

RMB 71,917,423.42

Profit excluding nonrecurring / 2009 / consolidated owner

RMB -226,687,307.1

The FY2009 tax note reports a 25% corporate income-tax rate for the listed parent and Jushi Jiujiang, while Jushi Group and Jushi Chengdu applied 15% rates. Jushi Group’s treatment followed recognition as a high-technology enterprise, stated to be valid for three years; Chengdu’s treatment related to the western-region policy described in the filing. A separate Jiujiang arrangement provided for refunding 50% of the local-government share of its income tax during 2009–2013. That is not a 50% reduction of the entire statutory rate. Some Shenzhen building-material subsidiaries were on a transitional rate schedule, with 20% stated for 2009. These historical entity-level treatments help explain why a group tax result cannot be inferred by applying the parent’s rate to consolidated profit. They are not current tax guidance or proof of a later cash refund.

Domestic main-business revenue was CNY 1,396,167,168.08, while foreign main-business revenue was CNY 1,681,192,832.92. Together they reconcile to main-business revenue, excluding other-business income. These are selling markets, not a count or location of factories. The disclosed overseas subsidiary network includes trading operations and a South African composite-material business; foreign sales do not establish manufacturing in every customer market. The five largest disclosed sales customers contributed CNY 613,264,135.72, reported as 19.34% of consolidated revenue. That denominator differs from main-business revenue. Customer sales concentration also differs from the year-end receivables ranking, which measures unsettled balances. Names and related-party classifications should be retained as disclosed for FY2009, without extending research into each counterparty.

Reported business revenue / 2009 / domestic main business

RMB 1,396,167,168.08

Reported business revenue / 2009 / foreign main business

RMB 1,681,192,832.92

Reported top five customer sales / 2009 / consolidated annual

RMB 613,264,135.72

Reported top five customer share / 2009 / consolidated annual

19.34%

The detailed related-transaction note reports CNY 192,640,644.78 of finished-product sales to GIBSON ENTERPRISES INC., described as controlled by a Jushi Group shareholder, and CNY 100,495,642.80 to the China National Building Material import-export company. Their reported shares of the applicable sales category were 6.26% and 3.27%. Transactions with Hengshi Fiber amounted to CNY 19,858,200.09 and combined rent, materials and finished products. Separately, supplies to Jushi Pandeng Electronic Substrate of gas, materials and wastewater-treatment services totaled CNY 45,287,186.30, or 48.40% of the applicable other-business category. Those different transaction roles explain industrial and distribution relationships; they are not all fiber sales, overseas end-customer orders or incremental sales to add to consolidated revenue. Registered related-party names and the reported pricing policy do not establish subsequent customer collections or counterparty performance.

Reported related sales / 2009 / gibson finished goods

RMB 192,640,644.78

Reported related sales / 2009 / cnbm import export finished goods

RMB 100,495,642.8

Reported related sales / 2009 / hengshi rent materials products

RMB 19,858,200.09

Reported related sales / 2009 / pandeng energy materials water service

RMB 45,287,186.3

At the end of FY2009, management described the business as substantially dependent on exports and exposed to movements in the renminbi. It said that the European Union, Turkey and India had initiated antidumping investigations into glass-fiber exports from China. These were investigations as described in the historical filing, not evidence of final duties or their present-day status. Management proposed more domestic sales, changes to processes and raw-material formulations, and some foreign procurement of materials and equipment to offset currency effects. It also proposed accelerating production-line development abroad and responding to trade proceedings through government and industry channels. These responses explain its intended market and production strategy; the disclosure does not establish a quantified currency hedge, completed overseas capacity or successful resolution of the investigations.

The supplemental report links water reuse to production and describes recovery of concentrated sizing material, clarifier cleaning and formulation adjustments intended to reduce pollutants. It reports dust emissions of 11.82 grams per tonne of yarn and chemical oxygen demand emissions of 1.87 grams per tonne of yarn for 2009, with reported reductions of 79.49% and 99.30%. The narrative uses both zero-discharge and basically-zero-discharge wording for industrial wastewater; these claims do not independently demonstrate each site's permit status or measured compliance. For Tongxiang specifically, it reports energy use per output value down 51.16% and energy use per unit of product down 63.10% in 2009 relative to 2005. Claimed standard-coal savings of 68,300 tonnes cover 2007–2009, not FY2009 alone. These measures have different denominators and periods and should not be combined into a single group saving.

The water-reuse project has a reported CNY 30,050,000 budget, an opening construction balance of CNY 14,419,298.77 and FY2009 additions of CNY 7,395,416.10. The table reports a CNY 21,814,714.87 transfer to fixed assets, an investment-to-budget ratio of 73% and own funds as the source. Opening construction plus additions equals the transfer; the continuation table shows a dash in the closing construction column. This accounting movement is retained separately from the issuer resource-use claims discussed elsewhere in the annual report. A transfer or expenditure ratio alone does not quantify daily treatment capacity, water actually reused, a group-wide saving or environmental permit compliance. The cited financial row does not supply an exact physical address or treatment-output series.

Reported project budget / 2009 / water reuse accounting row

RMB 30,050,000

Reported construction opening balance / 2009 / water reuse accounting row

RMB 14,419,298.77

Reported construction carrying-value additions / 2009 / water reuse accounting row

RMB 7,395,416.1

Reported construction transfer to fixed assets / 2009 / water reuse accounting row

RMB 21,814,714.87

The fixed-asset note states that property certificates for buildings with a combined carrying amount of CNY 96,495,961.62 had not been completed at 31 December 2009 and that the relevant procedures were being processed. The table shows gross value CNY 130,531,400.23 less depreciation CNY 34,035,438.61. Its net values are CNY 9,125,405.94 for Jushi headquarters, CNY 40,062,717.35 for Jushi Jiujiang, CNY 34,315,838.33 for Jushi Chengdu and CNY 12,992,000 for Baoyu Industrial. These are existing-building carrying amounts, separate from construction balances and project investment budgets. An outstanding property-certificate procedure is not itself a disclosed loss of ownership, a production stoppage or an environmental-permit breach. The table identifies organisational locations but does not provide precise addresses or coordinates for these assets. It cannot serve as an identity bridge between differently named production projects.

The company identified natural gas, electricity and oxygen as production inputs whose rising prices could reduce glass-fiber gross margins. Product-price fluctuations were another stated earnings exposure. Management described changes to production-line location, energy structure and purchasing, alongside lower manufacturing and logistics costs, product upgrading and closer application support for customers. The linkage is operational: input costs and selling prices affect the margin available to support investment. These are issuer-described risks and responses in FY2009. The disclosure does not quantify a facility-level energy bill, realized saving or outage, and its general safety and emissions plans are not evidence of a specific incident or compliance breach.

The Jiujiang expansion began construction in July 2009. It comprised two alkali-free glass-fiber furnace-drawing lines with nominal annual capacities of 70,000 and 80,000 tonnes, plus supporting works for the new base. Furnace drawing means drawing glass into fibers from a molten-glass furnace. The 70,000-tonne component had an estimated total investment of CNY 981,259,600. The annual report says this line was ignited and entered production in February 2010. This is a subsequent event disclosed in the FY2009 report, rather than evidence of production throughout 2009. Management also described a larger 350,000-tonne base programme; that wider scope is not an additional operating capacity to add to these two components. Relocation of existing Jiujiang assets to the science and technology park also affected construction accounting. The disclosure does not separate this component’s annual output, utilization or customer sales.

The 80,000-tonne-per-year line was the second component of the Jiujiang 150,000-tonne alkali-free glass-fiber expansion. Its estimated total investment was CNY 991,753,800. The FY2009 investment discussion describes it as under construction. This stage is retained separately from the first component’s February 2010 production start. The two component estimates sum to CNY 1,973,013,400. The financial construction note instead gives the broader Jiujiang new-factory accounting row a budget of CNY 1,970,249,330. The CNY 2,764,070 difference has no reconciliation in these passages. Both source roles remain visible; the difference is not assigned to a line or treated as an overrun. Neither estimated total investment is identified as cash paid entirely during FY2009, and nominal capacity does not establish actual annual output.

Construction of the Tongxiang energy-saving and environmental furnace-drawing line began in September 2009. The disclosed nominal annual capacity was 35,000 tonnes of glass fiber. The investment discussion estimates total investment at USD 73,511,800 and describes the project as under construction. The dollar currency in this individual disclosure is preserved. No assumed exchange rate is used to combine it with yuan project budgets. The financial construction note separately labels project 224 as a Tongxiang 30,000-tonne waste-fiber furnace. Shared location and environmental wording do not prove that the two names describe the same physical line. The 35,000-tonne project retains its existing identity while the coded accounting row remains distinct context. The cited project disclosure does not quantify this line’s environmental savings, annual output or separate revenue.

At 31 December 2009, all construction in progress carried CNY 839,647,136.25, compared with CNY 76,645,076.95 at the start of the year. The major-project table has a narrower perimeter: opening CNY 53,912,216.18, additions CNY 814,498,056.83 and transfers to fixed assets CNY 35,972,642.35 leave CNY 832,437,630.66 at year-end. A separate fixed-asset note reports CNY 56,993,170.11 transferred from construction, a broader total than the major-project table. Within the major table, Jiujiang new-factory construction opens at CNY 2,256,279.84, adds CNY 742,875,018.93 and transfers CNY 14,157,927.48, leaving CNY 730,973,371.29. Its reported investment-to-budget ratio is 37%, and special loans are named as the funding source. Management attributes part of the construction increase to relocation of existing Jiujiang assets as well as new construction. Additions therefore are not independently identified cash expenditure, and the broad factory row cannot be allocated between the two line components without a source bridge. The 37% ratio measures expenditure against budget, rather than physical completion or capacity utilization.

Reported construction opening balance / 2009 / all construction

RMB 76,645,076.95

Reported construction closing balance / 2009 / all construction

RMB 839,647,136.25

Reported construction opening balance / 2009 / major project table

RMB 53,912,216.18

Reported construction carrying-value additions / 2009 / major project table

RMB 814,498,056.83

Reported construction transfer to fixed assets / 2009 / major project table

RMB 35,972,642.35

Reported construction closing balance / 2009 / major project table

RMB 832,437,630.66

Reported construction transfer to fixed assets / 2009 / fixed asset note all construction

RMB 56,993,170.11

Reported project budget / 2009 / jiujiang new factory accounting row

RMB 1,970,249,330

Reported construction opening balance / 2009 / jiujiang new factory accounting row

RMB 2,256,279.84

Reported construction carrying-value additions / 2009 / jiujiang new factory accounting row

RMB 742,875,018.93

Reported construction transfer to fixed assets / 2009 / jiujiang new factory accounting row

RMB 14,157,927.48

Reported construction closing balance / 2009 / jiujiang new factory accounting row

RMB 730,973,371.29

Reported project investment budget ratio / 2009 / jiujiang new factory accounting row

37%

Project 224, described as a Tongxiang 30,000-tonne waste-fiber furnace, has a CNY 319,009,900 budget, CNY 12,682,896.75 of FY2009 additions and the same closing construction balance. The table reports investment at 4% of budget and own funds as the source. Project 222 has a CNY 117,624,500 budget, CNY 43,502,645.06 of additions and CNY 80,429,282.63 of closing construction, with a 68% investment-to-budget ratio and both special and general borrowing. Its code alone does not establish the site or product identity. Supporting works also include self-made fiber-drawing machines, with a CNY 67,900,000 budget and CNY 5,165,320 of additions and closing construction. Other disclosed closing balances include CNY 824,737.43 for a first-plant forehearth pure-oxygen upgrade and CNY 2,610,677.32 for a Jiujiang chopped-strand-mat project. These are construction accounting measures, not verified output, utilization or commissioning dates. A coded name is retained without creating a new physical project identity or merging it with a differently sized line.

Reported project budget / 2009 / 224 tongxiang 30kt waste fiber accounting row

RMB 319,009,900

Reported project construction additions / 2009 / 224 tongxiang 30kt waste fiber accounting row

RMB 12,682,896.75

Reported project construction closing balance / 2009 / 224 tongxiang 30kt waste fiber accounting row

RMB 12,682,896.75

Reported project budget / 2009 / 222 accounting row

RMB 117,624,500

Reported project construction additions / 2009 / 222 accounting row

RMB 43,502,645.06

Reported project construction closing balance / 2009 / 222 accounting row

RMB 80,429,282.63

Reported project budget / 2009 / self made drawing machines

RMB 67,900,000

Reported project construction additions / 2009 / self made drawing machines

RMB 5,165,320

Reported project construction closing balance / 2009 / self made drawing machines

RMB 5,165,320

The major-construction note reports cumulative capitalized interest of CNY 37,093,914.69 and current-year capitalized interest of CNY 36,962,507.19. Jiujiang new-factory construction accounts for CNY 33,662,726.93 in both columns and a reported capitalization rate of 5.94%. Project 222 accounts for cumulative CNY 3,431,187.76, of which CNY 3,299,780.26 belongs to the current year; its rate entry contains 5.4% and 7.47%. Current-year and cumulative amounts therefore differ for this row. These amounts are interest included in construction cost under the report accounting treatment, rather than all group interest expense or an independent measure of cash interest paid. The row-specific rates are not a consolidated effective borrowing rate. The table does not allocate this interest among the individual Jiujiang production lines.

The listed issuer held 51% of Jushi Group, which manufactured and sold glass fiber and composite-material products. The management summary reports subsidiary assets of CNY 13,187,260,400 and a FY2009 net loss of CNY 236,531,900, converted from ten-thousand-yuan figures. These are subsidiary amounts, rather than the listed-company owner-profit measure or an additional layer to add to consolidated totals. The narrative gives registered capital of USD 256,208,100, while the subsidiary table displays USD 256,200,000. The different presentations are retained without assuming a capital change or a specific rounding explanation. The table also records actual contributed capital of USD 130,662,000, which is distinct from registered capital. Jushi owned its Jiujiang and Chengdu manufacturing subsidiaries outright at year-end, but the lower-tier 100% stakes do not mean that the listed issuer directly or economically owned 100% of those operations. Minority interests in Jushi remain relevant to the allocation of operating results.

Reported registered capital / 2009 / jushi management summary

256,208,100 USD

Reported subsidiary total assets / 2009 / jushi management summary

RMB 13,187,260,400

Reported subsidiary net profit / 2009 / jushi management summary

RMB -236,531,900

Reported ownership percentage / 2009 / jushi subsidiary

51%

Reported registered capital / 2009 / jushi consolidation table

256,200,000 USD

The listed issuer held 97.22% of Beixin Technology Development. Its management summary reports registered capital of CNY 90,000,000, assets of CNY 222,487,800 and a FY2009 net loss of CNY 24,445,800. The assets and loss are converted from the original ten-thousand-yuan presentation. The subsidiary table classifies Beixin as a trading enterprise and describes new-material research, technical consulting and industrial investment; the management narrative also includes production, sales and distribution. Those stated business scopes do not establish separately realized revenue from every activity. Lower-tier businesses include industrial trading, cement products, ceramics, home building materials and a home-furnishings market. These operations help explain the listed group’s historical business perimeter. Their subsidiary results are already reflected through consolidation and are not separate profits to add again to group totals.

Jushi Group signed an agreement to acquire the 43% interest in Jushi Chengdu held by Sichuan Chengdu Zhenshi Investment. The note uses 31 October 2009 as the transaction reference date and states that Jushi held 100% after the acquisition was completed. The reference date is retained without treating it as an independently disclosed legal completion date. The subsidiary table classifies Chengdu as a production enterprise whose business scope includes glass fiber, related products, composite materials, engineering plastics, fiber chemicals and specialized equipment, as well as relevant import and export activities. Registered capital is CNY 609,570,000. This organizational integration is separate from commissioning a new production line and does not itself establish an increase in capacity or sales. The listed issuer’s 51% stake in Jushi remains the higher-tier ownership boundary.

Jushi Jiujiang is classified as a production enterprise and wholly owned within Jushi, with registered capital of CNY 340,000,000. Its disclosed scope includes exports of its own products and technology, imports of production inputs and processing trade. Jiujiang Mining sits below Jiujiang and processes or sells calcium oxide, calcium carbonate and fluorite. The table records an 85% holding at that immediate parent layer and registered capital of CNY 1,000,000. This mineral-processing role connects the subsidiary structure to fiber-manufacturing inputs, but a business scope does not prove that all output was supplied internally or quantify material volumes and realized savings. The note includes the mining company among four newly registered entities entering consolidation during FY2009. Neither subsidiary registration nor a registered-capital amount establishes a new operating furnace or an exact factory address.

The subsidiary table classifies the South African Huaxia composite-material company as production, with glass-fiber and fiber-product manufacturing and sales in its stated scope. It records a 60% holding within Jushi and USD 4,000,000 of registered capital. A separately named South African Huaxia industrial company is classified as trading. Other overseas trading companies are registered in Hong Kong, Toronto, Seoul, Mumbai, Milan and Madrid, with scopes covering fiber products, equipment and raw-material trade. Canada is specifically identified as a subsidiary of the Hong Kong company; its 60% ownership entry belongs to that lower tier. The disclosed sales network therefore cannot be read as evidence of a factory in every sales market. Registration locations are not verified production-site addresses. Registered capital currencies also differ from functional currencies used to translate overseas accounts: the South African production company uses rand, while the industrial company uses dollars. Capital, ownership and currency columns retain their separate meanings.

The subsidiary table records 60% ownership and voting rights for the Italian company, the Hong Kong composite-material company and the South African Huaxia industrial company. The accompanying note nevertheless says their statements were consolidated on a 100% basis during the period because minority holders had not completed their actual contributions. This stated accounting treatment is retained without rewriting the ownership columns or asserting 100% direct ownership by the listed issuer. In the Beixin subgroup, Baoyu Industrial is recorded at 50% ownership and voting rights but is consolidated because Beixin held four of seven board seats, reported as 57.14%, and the note states that it exercised control. Shangmei Home Building Materials is recorded with 90% direct and 6% indirect ownership and 100% voting rights. The note explains that Beixin held 90% directly and its 60%-owned Qibai Ceramics subsidiary held the other 10%. These are distinct equity, governance and consolidation measures; the FY2010 voting-rights disclosures are not inserted into this FY2009 account.

The report says the consolidated subsidiary count increased by four and that all four additions were newly registered companies. The new-entity table lists the Hong Kong Huaxia composite-material company, South African Huaxia industrial company, Spanish company and Jiujiang Mining. Their closing net assets are CNY 4,096,920, CNY 512,115, CNY 4,893,705.64 and CNY 1,000,000 respectively. It reports a current-year net loss of CNY 12,238.26 for Spain and CNY 7,869.63 for Jiujiang Mining; the profit column for the other two entries contains a dash, which is not converted into a separately verified zero-profit figure. Closing net assets and current-year profit have different periods and meanings. The Hong Kong composite-material name appears with and without Huaxia in nearby tables. That source variation remains visible in organizational context without creating or merging an entity solely from a similar name. These additions are not described as four acquired production plants.

Reported subsidiary net assets / 2009 / hongkong huaxia newly included

RMB 4,096,920

Reported subsidiary net assets / 2009 / south africa industrial newly included

RMB 512,115

Reported subsidiary net assets / 2009 / spain newly included

RMB 4,893,705.64

Reported subsidiary net profit / 2009 / spain newly included

RMB -12,238.26

Reported subsidiary net assets / 2009 / jiujiang mining newly included

RMB 1,000,000

Reported subsidiary net profit / 2009 / jiujiang mining newly included

RMB -7,869.63

In FY2009, the investment note identified Jushi Pandeng Electronic Substrate as a joint venture with 50% ownership and 50% voting rights. Its stated business was production and sale of glass fiber and products for information technology and other high-technology applications. The note reports the investee’s revenue of CNY 160,099,071.36, net assets of CNY 165,621,381.04 and a net loss of CNY 21,640,801.00. The group recognised an equity-method loss of CNY 10,820,400.50 and carried its investment at CNY 82,810,690.52. The investee’s full-company figures, the group’s investment balance and the group’s share of its result are different measures, not additional consolidated sales or cash distributions. The wider associate portfolio included building-materials trading, real-estate development, coated and insulating glass engineering, and white cement. Those activities explain the historical business perimeter without establishing realized revenue from every registered activity or a completed later integration.

Reported investee revenue / 2009 / pandeng investee whole company

RMB 160,099,071.36

Reported investee net profit / 2009 / pandeng investee whole company

RMB -21,640,801

Investee net assets / 2009 / pandeng investee whole company

RMB 165,621,381.04

Equity method result / 2009 / pandeng group investment result

RMB -10,820,400.5

Investment carrying value / 2009 / pandeng group investment

RMB 82,810,690.52

The long-term-investment schedule closed at gross carrying value CNY 186,885,365.96, after an opening balance of CNY 199,990,810.76, additions of CNY 827,778.74 and reductions of CNY 13,933,223.54. Cumulative impairment of CNY 12,647,435.72 reconciles the schedule to net long-term investments of CNY 174,237,930.24 in the consolidated balance sheet. Most of that allowance, CNY 12,327,935.72, concerned the historical investment in Shandong Yantai Bohai Chemical Building Materials; smaller amounts concerned two other investments. The report table shows dashes for current impairment charges and cash dividends in the investment schedule. The closing allowance is not a new FY2009 expense, and accounting investment reductions are not all cash receipts.

Jushi Group acquired the remaining 43% of Jushi Chengdu from Sichuan Chengdu Zhenshi Investment for CNY 502,521,134.43. The report describes a related-party transaction because the listed company’s vice chairman also chaired the seller. It used a valuation dated October 31, 2009: total Chengdu equity was assessed at CNY 1,168,653,801.00 using a discounted-income method, and the price equaled 43% of that assessed value. This is a transaction valuation reported by the issuer, not a current market valuation or independently verified forecast. The acquisition table gives December 29, 2009 as the purchase date and states no contribution between purchase and year-end; a separate full-year common-control contribution is CNY 15,200,775.12. The board discussion reports shareholder approval in 2010 and registration completed on March 22, 2010. Those dates and contribution scopes are retained separately. The CNY 351,764,794.10 year-end purchase payable is an unpaid transaction balance, not another acquisition price or proof of completed cash settlement.

On November 24, 2009, the board approved a proposal for Beixin Technology’s subsidiary Zhujiang Junan Cement Products to form Shenzhen Xinjunjian Property Investment with China National Building Material Investment, an affiliate of the controlling shareholder. The planned contribution comprised CNY 8,000,000.00 in cash and land-use rights valued at CNY 8,000,000.00, for joint property development. The mixture of cash and rights matters for capital allocation: the entire proposed contribution was not a cash payment, and land-use rights were not freehold ownership. This disclosure establishes a proposed venture and its contribution terms. It does not establish a completed development, project sales, address, later operating result or commercial success. The four newly registered entities identified as entering FY2009 consolidation were different named entities.

Proposed contribution / 2009 / property venture cash

RMB 8,000,000

Proposed contribution / 2009 / property venture land rights

RMB 8,000,000

The consolidated group reported FY2009 operating cash flow of negative CNY 126,622,041.82, compared with negative CNY 456,898,932.05 in FY2008. Cash inflows from operations of CNY 2,690,804,098.36 were below operating payments of CNY 2,817,426,140.18. Cash collected from sales and services was CNY 2,345,433,265.16, compared with CNY 3,300,158,103.66 in the prior year. The cash-flow table records actual cash receipts and payments; it does not measure revenue, sales volumes or customer orders. The parent company separately reported positive operating cash flow of CNY 17,780,971.27. Its cash flows are part of a different reporting perimeter and cannot be added to the consolidated group amount. The smaller group cash deficit therefore represents an improvement on the prior year, while operations still consumed cash.

Reported operating cash flow / 2009 / consolidated annual

RMB -126,622,041.82

Operating cash inflows / 2009 / consolidated annual

RMB 2,690,804,098.36

Operating cash outflows / 2009 / consolidated annual

RMB 2,817,426,140.18

Reported sales cash receipts / 2009 / consolidated annual

RMB 2,345,433,265.16

Reported operating cash flow / 2009 / parent annual

RMB 17,780,971.27

Cash paid to acquire or construct fixed assets, intangible assets and other long-term assets was CNY 1,321,692,805.15 in FY2009, compared with CNY 2,841,827,219.79 in FY2008. These payments span the consolidated group and are not an allocation to a particular furnace or construction project. Investment payments were a further CNY 150,756,340.33, and net investing cash flow was negative CNY 1,346,493,028.92. Net financing cash inflow of CNY 2,091,391,843.13 exceeded the combined operating and investing cash outflows. After an exchange-rate effect of negative CNY 445,922.09, cash increased by CNY 617,830,850.30 to CNY 1,896,421,270.78. This cash increase was supported by financing rather than positive operating cash generation. Parent-company investing cash flow of CNY 112,756,856.76 and financing cash flow of negative CNY 198,239,322.34 are separate from these consolidated measures.

Reported capital expenditure cash / 2009 / consolidated long term assets

RMB 1,321,692,805.15

Reported investing cash flow / 2009 / consolidated annual

RMB -1,346,493,028.92

Reported financing cash flow / 2009 / consolidated annual

RMB 2,091,391,843.13

Cash net change / 2009 / consolidated annual

RMB 617,830,850.3

Year-end monetary funds totaled CNY 1,896,421,270.78: cash on hand of CNY 597,692.60, bank deposits of CNY 1,541,437,834.68 and other monetary funds of CNY 354,385,743.50. The other-funds note identifies letter-of-credit margins of CNY 215,947,179.36, pledged-loan deposits of CNY 114,500,000.00, bank-acceptance-bill margins of CNY 23,684,643.97 and credit-card deposits of CNY 253,920.17. However, the cash-and-cash-equivalents supplement labels the full other-funds balance as available for payment at any time and shows a dash in the restricted-cash row. A separate restricted-assets note reports pledged monetary funds of CNY 327,543,940.87. The disclosures do not explain how that pledge balance overlaps with the deposit categories. Both presentations are retained: the total is not labeled wholly unrestricted, and no unrestricted-cash or net-debt amount is calculated by assuming an overlap.

Reported monetary-funds balance / 2009 / consolidated monetary funds

RMB 1,896,421,270.78

Bank deposits / 2009 / consolidated monetary funds

RMB 1,541,437,834.68

Reported other monetary funds / 2009 / consolidated monetary funds

RMB 354,385,743.5

Letter credit margin / 2009 / consolidated other funds

RMB 215,947,179.36

Pledged loan deposit / 2009 / consolidated other funds

RMB 114,500,000

Acceptance bill margin / 2009 / consolidated other funds

RMB 23,684,643.97

Pledged monetary funds / 2009 / restricted assets note

RMB 327,543,940.87

The indirect reconciliation starts with a consolidated net loss of CNY 266,299,606.59 and reaches operating cash flow of negative CNY 126,622,041.82 after noncash adjustments and changes in operating balances. It adds depreciation of CNY 644,557,951.24 and a finance-expense adjustment of CNY 516,661,597.64, while increases in operating receivables and decreases in operating payables reduce cash by CNY 398,935,777.60 and CNY 581,516,598.40 respectively. These reconciliation adjustments are not additional cash payments, and the finance-expense adjustment is not a cash-interest figure. The depreciation adjustment differs from the fixed-asset note annual depreciation of CNY 354,117,043.18 by CNY 290,440,908.06. The report supplies no explicit numerical bridge between the two roles, so the difference is preserved without assigning it to an assumed asset category or maintenance cost.

Cashflow depreciation adjustment / 2009 / consolidated indirect cash

RMB 644,557,951.24

Cashflow finance expense adjustment / 2009 / consolidated indirect cash

RMB 516,661,597.64

Cashflow operating receivable change / 2009 / consolidated indirect cash

RMB -398,935,777.6

Cashflow operating payable change / 2009 / consolidated indirect cash

RMB -581,516,598.4

The monetary-funds note explicitly states that CNY 354,131,823.33 was used for letter-of-credit, pledged-loan and bank-acceptance-bill guarantee deposits at the balance-sheet date. The company could use these funds after satisfying the relevant contract terms. That amount equals the three margin categories in the deposit table; the remaining CNY 253,920.17 of other monetary funds consists of credit-card deposits. This contractual condition is relevant when assessing funding available for operations and investment. It differs from the cash supplement, which labels the full other-funds balance as available for payment at any time. The report does not reconcile the availability descriptions or explain the overlap with the separate pledged-funds balance. The contractual restriction is therefore retained without calculating an assumed unrestricted-cash total.

Contract restricted cash / 2009 / contract conditioned guarantee deposits

RMB 354,131,823.33

Closing bills receivable totaled CNY 256,955,377.87, comprising bank-acceptance bills of CNY 253,857,692.09 and commercial-acceptance bills of CNY 3,097,685.78. The comparable opening total was CNY 78,532,877.90. These balances describe payment instruments held at year-end rather than cash already collected. The company also disclosed 1,304 endorsed bills that had not yet matured, totaling CNY 298,209,403.74. The listed examples matured in April and May 2010. Endorsement transfers a bill to another holder; the endorsed amount is a separate disclosure and is not added to the closing bills balance as another asset. The issuer names support the reported settlement relationships but do not establish new sales amounts, subsequent collections or undisclosed customer defaults.

Reported bills receivable / 2009 / consolidated closing

RMB 256,955,377.87

Bank acceptance receivables / 2009 / consolidated closing

RMB 253,857,692.09

Commercial acceptance receivables / 2009 / consolidated closing

RMB 3,097,685.78

Reported endorsed unmatured bills / 2009 / consolidated endorsed unmatured

RMB 298,209,403.74

Gross trade receivables closed at CNY 1,220,088,346.37, up from CNY 936,104,235.66. The closing bad-debt allowance was CNY 48,898,147.69, giving net receivables of CNY 1,171,190,198.68, consistent with the balance sheet. The opening allowance of CNY 32,832,235.28 similarly reconciles to opening net receivables of CNY 903,272,000.38. The ageing table places CNY 150,533,298.84 in the one-to-two-year category, compared with CNY 30,479,766.00 at opening. Ageing and provision balances describe collection exposure, without proving that every older balance was in default. The five largest debtors accounted for CNY 338,839,256.45, or a reported 27.77% of gross receivables; two were identified as related parties. These debtor balances are distinct from annual customer-sales concentration. The note prints a closing total allowance rate of 3.51%, whereas its amounts imply approximately 4.01%; the opening total prints 4.00% versus approximately 3.51% by calculation. Its opening smaller-balance category prints 5.63% versus approximately 5.93% from the corresponding amounts. The original amounts and printed rates remain separate rather than silently corrected.

Reported gross trade receivables / 2009 / consolidated closing

RMB 1,220,088,346.37

Reported trade-receivable allowance / 2009 / consolidated closing

RMB 48,898,147.69

Reported net trade receivables / 2009 / consolidated closing

RMB 1,171,190,198.68

Receivables one two years / 2009 / consolidated trade closing

RMB 150,533,298.84

Top five debtors / 2009 / consolidated trade closing

RMB 338,839,256.45

Receivables allowance percentage / 2009 / consolidated closing printed rate

3.51%

Prepayments closed at CNY 281,840,276.82, compared with CNY 454,121,475.92 at opening. The five largest recipients together accounted for CNY 37,991,823.75 and included construction, electrical-system, logistics-equipment, installation and container-engineering suppliers. The note describes their work as unfinished and not yet settled, including CNY 22,838,000.00 advanced to the Tongxiang office of a construction contractor. These advances help explain funds committed before work was completed or settled. They are not evidence of completed production capacity, customer orders or an allocation to a named furnace. The year-end balance and its change are also distinct from total supplier cash payments during FY2009.

Reported supplier prepayments / 2009 / consolidated closing

RMB 281,840,276.82

Top five prepayments / 2009 / consolidated closing

RMB 37,991,823.75

Supplier prepayment / 2009 / construction tongxiang office

RMB 22,838,000

Other receivables had a closing gross balance of CNY 91,750,554.89 and an allowance of CNY 20,647,299.87, yielding net assets of CNY 71,103,255.02 as shown in the balance sheet. This category is separate from trade receivables. The five largest debtors represented CNY 33,376,524.70, or a reported 36.38% of gross other receivables. A related glass-engineering company accounted for CNY 23,960,292.67 in the one-to-two-year category, and a related building-materials company for CNY 2,215,926.47. The reported relationships and ageing identify exposures within the historical business perimeter, but the table does not establish the purpose, repayment timetable or subsequent recovery of every balance. The allowance is an accounting estimate rather than proof that those specific named debts were wholly unrecoverable.

Reported gross other receivables / 2009 / consolidated closing

RMB 91,750,554.89

Reported other-receivable allowance / 2009 / consolidated closing

RMB 20,647,299.87

Reported other receivables net / 2009 / consolidated closing

RMB 71,103,255.02

Top five debtors / 2009 / consolidated other closing

RMB 33,376,524.7

Related other receivable / 2009 / luoyang glass engineering closing

RMB 23,960,292.67

Related other receivable / 2009 / shenzhen building materials closing

RMB 2,215,926.47

Closing inventory had gross cost of CNY 910,895,752.76 and a write-down allowance of CNY 111,506.25, giving net inventory of CNY 910,784,246.51. The opening net amount was CNY 916,903,486.89. Finished goods had closing gross cost of CNY 777,322,547.17, compared with CNY 742,072,622.65 at opening, while raw materials declined from CNY 168,787,160.92 to CNY 122,744,175.60. The mix therefore changed even though total inventory fell slightly. The same allowance amount appears against finished goods at opening and closing; the movement table shows dashes for additions, reversals and write-offs, which are not converted into separately reported numerical zeros. These are accounting balances, not tonnes of fiber, utilization rates or evidence that all finished goods had been sold or could be realized at cost.

Reported gross inventory / 2009 / consolidated closing

RMB 910,895,752.76

Reported inventory allowance / 2009 / consolidated closing

RMB 111,506.25

Reported net inventory / 2009 / consolidated closing

RMB 910,784,246.51

Reported finished goods gross / 2009 / consolidated closing

RMB 777,322,547.17

Reported raw material inventory / 2009 / consolidated closing

RMB 122,744,175.6

Trade payables declined from CNY 1,723,218,477.74 to CNY 383,491,749.77; CNY 81,364,197.51 of the closing balance was more than one year old and described as unsettled. Bank-acceptance bills payable were a separate CNY 25,338,848.24, disclosed as due in the next accounting period. Customer advances increased from CNY 150,346,308.01 to CNY 174,879,984.53, including CNY 7,468,831.98 outstanding for more than one year. Advance balances are not a disclosed order backlog or recognized sales. Other payables increased from CNY 87,478,429.87 to CNY 486,398,468.81 and included the separately identified Chengdu acquisition payable of CNY 351,764,794.10. The categories explain different operating and integration obligations; their balance changes cannot simply be treated as annual cash payments or attributed entirely to one transaction.

Reported trade payables / 2009 / consolidated closing

RMB 383,491,749.77

Trade payables over one year / 2009 / consolidated closing

RMB 81,364,197.51

Acceptance bills payable / 2009 / consolidated closing

RMB 25,338,848.24

Customer advances in contract liabilities / 2009 / consolidated closing

RMB 174,879,984.53

Customer advances over one year / 2009 / consolidated closing

RMB 7,468,831.98

Reported other payables / 2009 / consolidated closing

RMB 486,398,468.81

Net intangible assets totaled CNY 212,111,574.77, including land-use rights of CNY 183,882,784.37, trademark-use rights of CNY 21,272,808.98, intellectual property of CNY 3,198,873.60 and software of CNY 3,757,107.82. Annual amortization was CNY 7,675,795.11. These carrying amounts describe rights and systems within the historical operation; land-use rights are not a claim of freehold land ownership, and the balances are not market valuations or measures of product sales. Goodwill of CNY 16,678,380.56 arose from acquisitions of Jushi Group, Jushi Jiujiang, Junan Cement and Baoyu Industrial. The issuer states that the goodwill was allocated to relevant asset groups and that its impairment tests identified no impairment. This is the company’s reported accounting assessment, without a disclosed detailed valuation model or a guarantee of future profitability.

Reported consolidated intangible assets net carrying value / 2009 / consolidated intangibles

RMB 212,111,574.77

Reported consolidated land-use rights net carrying value / 2009 / consolidated intangibles

RMB 183,882,784.37

Trademark use rights net / 2009 / consolidated intangibles

RMB 21,272,808.98

Intellectual property net / 2009 / consolidated intangibles

RMB 3,198,873.6

Software net / 2009 / consolidated intangibles

RMB 3,757,107.82

Reported goodwill / 2009 / consolidated goodwill

RMB 16,678,380.56

Deferred-tax assets closed at CNY 55,811,185.96, comprising CNY 18,462,099.76 related to impairment allowances and CNY 37,349,086.20 related to deductible losses. These are recognised tax-asset amounts, not cash refunds received in FY2009. Separately, the note lists CNY 19,630,229.31 of deductible losses for which no deferred-tax asset was recognised: CNY 16,136,195.70 was scheduled to expire in 2013 and CNY 3,494,033.61 in 2014, as disclosed at the FY2009 reporting date. The unrecognised loss amounts are tax bases, not another tax asset to add to the recognised balance. The report does not provide a bridge turning these figures into a common pool or a forecast of cash savings. Their recognition and expiry distinctions matter when assessing how accounting tax benefits depend on future taxable results.

The group recognised positive investment income of CNY 27,234,888.24, comprising equity-method losses of CNY 12,985,444.80, a loss of CNY 767.14 on disposal of long-term investments, and CNY 40,221,100.18 described as income obtained while holding trading financial assets. Separately, fair-value changes in trading financial assets produced a gain of CNY 11,883,032.87, compared with a loss of CNY 92,746,942.87 in FY2008. The monetary-funds note states that all trading equity investments were sold during FY2009. These accounting categories are retained as disclosed; the report does not supply a complete bridge separating the investment-income line into realized disposal gains, dividends and cash receipts. The amounts do not measure fiber selling prices, manufacturing margin or recurring customer revenue.

Equity method result / 2009 / consolidated equity method

RMB -12,985,444.8

Consolidated investment income or loss / 2009 / consolidated investment income

RMB 27,234,888.24

Trading asset holding income / 2009 / consolidated investment income

RMB 40,221,100.18

Fair value income / 2009 / consolidated trading financial assets

RMB 11,883,032.87

Government subsidies recognised in nonoperating income totaled CNY 96,746,264.44. The largest categories were an industrial-development-zone investment reward of CNY 50,009,280.00, an industrial-park entry reward of CNY 13,480,000.00 and a combined natural-gas subsidy and local-tax refund of CNY 11,370,000.00. Other specific support included CNY 5,000,000.00 for a major industrialization project, CNY 2,000,000.00 for a glass-fiber laboratory and CNY 400,000.00 for water reuse. These items explain support linked to investment, energy costs and industrial development. The cash-flow note separately reports government-grant cash receipts of CNY 92,243,512.30, while the liability note carries CNY 31,489,730.27 of deferred income from domestic-equipment tax refunds. Income recognised, cash received and deferred income are different measures. The report does not fully reconcile them, so the difference is not labeled unpaid grants or assumed to recur in future years.

Reported government subsidy income / 2009 / consolidated nonoperating

RMB 96,746,264.44

Government subsidy cash received / 2009 / consolidated operating cash

RMB 92,243,512.3

Reported government subsidy income / 2009 / industrial zone investment reward

RMB 50,009,280

Reported government subsidy income / 2009 / industrial park entry reward

RMB 13,480,000

Reported government subsidy income / 2009 / gas subsidy local tax refund

RMB 11,370,000

Deferred equipment tax income / 2009 / consolidated equipment refund deferred income

RMB 31,489,730.27

The consolidated income statement reports an operating loss of CNY 399,182,841.99. Nonoperating income of CNY 104,432,274.16, including the government subsidies, and nonoperating costs of CNY 5,254,946.49 resulted in a loss before tax of CNY 300,005,514.32. The costs included asset-disposal losses of CNY 2,105,036.24 and penalties of CNY 1,540,514.35; the note does not specify the cause or regulator of every penalty. Current tax expense of CNY 6,735,806.26 was offset by a deferred-tax adjustment of negative CNY 40,441,713.99, producing a net tax benefit of CNY 33,705,907.73. The resulting consolidated net loss was CNY 266,299,606.59. The deferred-tax benefit improved the accounting result, without demonstrating a matching cash refund or recovery in manufacturing earnings. Consolidated, listed-owner and minority results remain separate.

Operating profit / 2009 / consolidated income statement

RMB -399,182,841.99

Reported profit before tax / 2009 / consolidated income statement

RMB -300,005,514.32

Nonoperating income / 2009 / consolidated income statement

RMB 104,432,274.16

Reported nonoperating expense / 2009 / consolidated income statement

RMB 5,254,946.49

Current income-tax expense / 2009 / consolidated tax expense

RMB 6,735,806.26

Signed deferred income-tax expense / 2009 / consolidated tax expense

RMB -40,441,713.99

Reported consolidated income-tax expense / 2009 / consolidated tax expense

RMB -33,705,907.73

Management attributed the increase in gross trade receivables partly to longer customer credit and payment periods during the economic downturn. That matters for cash conversion: reported sales and customer collections can fall in different periods. The abnormal-change table compares opening gross receivables of CNY 932,850,521.66 with closing CNY 1,220,088,346.37, while the detailed receivables note gives a different opening gross amount, CNY 936,104,235.66. The filing does not reconcile the two opening figures. Its explanation of credit extensions can be retained, but the tables should not be merged into one comparative series. No specific payment-day increase or default rate is established by this narrative.

Comparative trade receivables gross / 2008 / abnormal change opening table

RMB 932,850,521.66

The consolidated financing table reports borrowing receipts of CNY 7,533,387,092.68 and debt repayments of CNY 4,915,798,926.12. These are gross annual cash movements, not the closing borrowing balance. Cash received from investors was CNY 28,051,735.00, all identified as minority-shareholder investment into subsidiaries; it is not evidence of new shares issued by the listed parent. Payments of CNY 553,451,458.43 combine dividends, profit distributions and interest, so the whole figure cannot be presented as dividends or as interest alone. A further CNY 796,600.00 was identified as financial-adviser fees. The cash-flow row for bond-issuance proceeds is a dash, while a separate debt note describes a short-term financing-note issue. The report provides no classification bridge that would support assigning those note proceeds to a particular cash-flow row.

Reported consolidated borrowing cash receipts / 2009 / consolidated annual

RMB 7,533,387,092.68

Reported consolidated debt repayment cash / 2009 / consolidated annual

RMB 4,915,798,926.12

Minority investment cash / 2009 / subsidiary minority consolidated

RMB 28,051,735

Distribution interest cash / 2009 / consolidated combined distribution interest

RMB 553,451,458.43

The restricted-assets note reports CNY 2,302,993,862.59 of assets used as security at year-end, comprising buildings of CNY 121,476,588.56, land-use rights of CNY 41,379,507.09 and machinery of CNY 2,140,137,766.94. Together with pledged monetary funds of CNY 327,543,940.87, its total restricted carrying amount was CNY 2,630,537,803.46. These are accounting carrying values and security arrangements, rather than additional borrowing proceeds or a market valuation of the factories. The disclosure helps explain financing constraints on the operating asset base; it does not establish that the assets were unavailable for production or that lenders had enforced their security.

Secured asset carrying value / 2009 / assets used as security

RMB 2,302,993,862.59

Restricted asset carrying value / 2009 / restricted assets note total

RMB 2,630,537,803.46

Short-term borrowings closed at CNY 3,778,685,088.65, comprising credit loans of CNY 1,639,141,147.78, guaranteed loans of CNY 1,797,000,000.00, mortgage-backed loans of CNY 15,000,000.00 and pledged loans of CNY 327,543,940.87. Separately, CNY 1,253,809,902.47 of long-term loans was due within one year, while long-term borrowings outside that current category were CNY 4,315,150,188.32. Jushi Group issued a one-year short-term financing note with face value CNY 500,000,000.00 on 1 May 2009, maturing on 1 May 2010. Its closing liability of CNY 509,294,444.47 includes accrued interest of CNY 9,294,444.47; adding the face value again would double count the note. Current long-term-loan maturities and this note together formed CNY 1,763,104,346.94 of current non-current liabilities. These maturity categories explain refinancing needs, without implying that a disclosed loan had defaulted or that refinancing was assured.

Reported short-term borrowings / 2009 / consolidated short term loans

RMB 3,778,685,088.65

Short term credit loans / 2009 / consolidated short term loans

RMB 1,639,141,147.78

Short term guaranteed loans / 2009 / consolidated short term loans

RMB 1,797,000,000

Short term mortgaged loans / 2009 / consolidated short term loans

RMB 15,000,000

Short term pledged loans / 2009 / consolidated short term loans

RMB 327,543,940.87

Reported current long term borrowings / 2009 / consolidated current maturities

RMB 1,253,809,902.47

Reported long term borrowings / 2009 / consolidated noncurrent loans

RMB 4,315,150,188.32

Financing note face value / 2009 / jushi one year note

RMB 500,000,000

Financing note accrued interest / 2009 / jushi one year note

RMB 9,294,444.47

Financing note closing liability / 2009 / jushi one year note

RMB 509,294,444.47

Reported current noncurrent liabilities / 2009 / consolidated current maturities

RMB 1,763,104,346.94

Other payables included CNY 351,764,794.10 owed to Sichuan Chengdu Zhenshi Investment for the acquisition of the minority interest in Jushi Chengdu. This is a closing acquisition-related payable, distinct from the purchase agreement, the resulting ownership stake and cash actually paid during FY2009. It therefore describes a payment obligation following the business integration, rather than an additional cash outflow to insert into the annual cash-flow totals. The note does not provide a payment timetable or a bridge allocating the amount across cash-flow rows.

Interest payable on short-term and long-term loans closed at CNY 12,834,009.32, divided among Jushi Group, Jushi Jiujiang and Jushi Chengdu. This closing accrual is separate from annual finance expense, cash interest paid and the financing-note interest included in another debt category. The employee-benefit payable note also identifies CNY 68,208,636.44 of unused welfare and reward funds accumulated by Jushi Group from historical after-tax profits. That explanation matters when interpreting the payable: the whole balance is not described as overdue wages or a current-year training budget. The table does not establish a withdrawal timetable for those funds.

Related procurement included CNY 190,955,929.60 of raw materials from Tongxiang Leishi Micropowder and CNY 15,552,833.40 from Tongxiang Juzhen Mining. The report states shares of 18.08% and 1.47% of the relevant transaction category. Tongxiang Jinshi Precious Metal Equipment supplied platinum-rhodium alloy and bushing processing for CNY 95,648,169.88, reported as 28.71% of its corresponding category and classified in fixed assets in the detailed transaction note. That accounting treatment distinguishes production-equipment investment from raw materials consumed in the period. The historical related-party network therefore affected both operating inputs and productive assets. The company describes prices as market-based; that is its stated pricing policy, not a separate verification of every contract. Percentages for raw materials, equipment and sales have different denominators and cannot be combined into one procurement-concentration figure.

Related raw material purchases / 2009 / leishi

RMB 190,955,929.6

Related raw material purchases / 2009 / juzhen

RMB 15,552,833.4

Related equipment purchases / 2009 / jinshi

RMB 95,648,169.88

Related trade receivables totaled CNY 163,152,944.90 at closing, including CNY 69,267,419.19 due from Pandeng and CNY 68,930,802.25 from GIBSON ENTERPRISES INC. Other related receivables were a separate CNY 28,503,181.85. They included an entrusted-loan balance of CNY 23,960,292.67 due from Luoyang Xinjingrun Engineering Glass. Beixin Technology had arranged the loan through Shanghai Pudong Development Bank with an original CNY 24,000,000.00 principal. The contract expired on September 29, 2009; the note states that it was not renewed formally and the parties continued performance by mutual tacit agreement. It reports an interest rate of 5.31% from February 2009, compared with the original 7.56%, and a separate annual funding-use fee of CNY 1,218,294.56. The principal, closing receivable and fee are distinct measures. Continued performance does not establish repayment, a new written maturity date or a proven default. Related purchase payables, sales advances and the Chengdu acquisition payable remain separate liabilities.

Reported related trade receivables / 2009 / consolidated

RMB 163,152,944.9

Reported related trade receivables / 2009 / pandeng

RMB 69,267,419.19

Reported related trade receivables / 2009 / gibson

RMB 68,930,802.25

Reported related other receivables / 2009 / consolidated

RMB 28,503,181.85

Entrusted loan receivable / 2009 / luoyang xinjingrun

RMB 23,960,292.67

Entrusted loan fee / 2009 / luoyang xinjingrun

RMB 1,218,294.56

Original entrusted loan principal / 2008 / beixin original 2008 contract

RMB 24,000,000

The report presents closing guarantee balances of CNY 1,357,868,200.17 in category A, headed guarantees excluding controlled subsidiaries, and CNY 1,190,046,000.00 in category B for controlled subsidiaries. Together they totaled CNY 2,547,914,200.17. The A table nevertheless includes Jushi Jiujiang and Jushi Chengdu as lower-tier controlled companies, alongside the Pandeng joint venture; its classification is preserved rather than converted into a claim that every guarantee was outside the consolidated business. The printed guarantee-to-net-assets ratio of 209.19% agrees with calculation using equity attributable to owners of the parent, CNY 1,217,984,305.63. Total consolidated equity including minorities was a different CNY 2,592,911,550.86. The report also prints CNY 581,053,847.18 as guarantees exceeding 50% of net assets, but that amount cannot be reconciled using either closing equity measure. Its basis remains unresolved. Guarantees are contingent support obligations; they are not additional drawn debt to add to group borrowings or evidence that every guarantee had been called.

Outgoing guarantee balance / 2009 / issuer category a

RMB 1,357,868,200.17

Outgoing guarantee balance / 2009 / issuer category b

RMB 1,190,046,000

Outgoing guarantee balance / 2009 / issuer total a b

RMB 2,547,914,200.17

Equity / 2009 / consolidated owner

RMB 1,217,984,305.63

Equity / 2009 / consolidated total

RMB 2,592,911,550.86

Guarantee above half equity / 2009 / issuer e unreconciled basis

RMB 581,053,847.18

Zhenshi provided guarantees for Jushi Group loans including USD 38,400,000.00, shown as CNY 262,202,880.00, and USD 16,500,000.00, shown as CNY 112,665,300.00, as well as several yuan loans. Beixin Building Materials Group also supported yuan and dollar borrowing. These incoming guarantees are separate from guarantees the listed group provided to other entities and from cash actually received. A maximum guarantee agreement, a supported loan balance and a loan maturity describe different contractual measures; overlapping security is not added as another loan. The credit note separately lists a CNY 500,000,000.00 facility and three CNY 150,000,000.00 facilities. Facilities describe permitted borrowing limits, not proven undrawn cash at year-end. One facility prints an April 9, 2009 start and April 8, 2009 expiry, which is inconsistent as written. No replacement expiry is assumed, and the disclosure does not justify adding all listed limits to available liquidity.

Credit facility limit / 2009 / beijing rural commercial agreement

RMB 500,000,000

Credit facility limit / 2009 / minsheng agreement

RMB 150,000,000

The report presents other comprehensive income of negative CNY 223,345,582.75, combining a foreign-currency translation gain of CNY 7,642,304.93 and a minority-equity acquisition premium of negative CNY 230,987,887.68. It allocates negative CNY 115,872,414.92 to owners of the parent and negative CNY 107,473,167.83 to minority interests. These items are presented outside the ordinary net-profit subtotal in this historical report. They should not be inserted as another operating expense or presumed cash payment. Combined with the consolidated net loss, they produced total comprehensive loss of CNY 489,645,189.34. The acquisition premium is distinct from the acquired stake, the purchase payable and the full investment consideration; the note does not provide a bridge equating those figures.

Reported other comprehensive income / 2009 / consolidated oci

RMB -223,345,582.75

Translation oci / 2009 / consolidated oci

RMB 7,642,304.93

Minority acquisition premium / 2009 / consolidated oci

RMB -230,987,887.68

Owner oci / 2009 / consolidated oci

RMB -115,872,414.92

Minority owners other comprehensive income / 2009 / consolidated oci

RMB -107,473,167.83

Reported consolidated total comprehensive income / 2009 / consolidated comprehensive

RMB -489,645,189.34

The FY2009 report names the listed issuer as CHINA FIBERGLASS CO., LTD, with Shanghai A-share code 600176. It identifies China National Building Material Co., Ltd. as the controlling shareholder, holding 154,502,208 shares, or 36.15%, with the same reported voting percentage. Zhenshi Holding Group held 85,631,040 shares, or 20.04%. The named ultimate controller was China National Building Material Group Corporation, and the report states that control did not change during FY2009. Its ownership diagram shows the ultimate controller holding 65% of Beixin Building Materials Group, which held 30.46% of the controlling shareholder; a separate direct arrow shows 13.67%. These are distinct historical ownership links. They are not percentages of the listed issuer to be added together or evidence of present-day control. The report says that relationships or concerted action among its top shareholders were unknown.

Total shares remained 427,392,000 throughout FY2009. The shareholder chapter reports that 154,654,848 previously restricted shares became tradable on August 17, 2009, comprising 111,763,008 held by China National Building Material and 42,891,840 by Zhenshi. It lists zero restricted shares at year-end. Separately, both shareholders had voluntarily promised not to reduce their holdings in the secondary market before August 17, 2010, covering their full respective stakes of 154,502,208 and 85,631,040 shares. Formal trading classification and the voluntary no-sale commitment therefore differ. Zhenshi also had 50,022,240 shares pledged. A pledge is not a disclosed sale or change of voting control. The financial-statement share-capital note still presents 154,654,848 restricted and 272,737,152 unrestricted shares at closing, unlike the shareholder chapter. The report does not reconcile those classifications; both retain the same total share count.

The listed parent reported a FY2009 net loss of CNY 7,176,393.97 and accumulated undistributed losses of CNY 131,645,174.82 at year-end. Its capital reserve was CNY 53,696,990.29. These parent-company amounts differ from consolidated earnings and reserves, which include subsidiaries and minority interests. The board proposed no FY2009 profit distribution and no conversion of capital reserves into share capital; the report explicitly says the proposal required the annual shareholders’ meeting. It is a proposal at the filing date, not evidence of a subsequent shareholder vote. Separately, consolidated capital reserves fell by CNY 117,803,822.71 to CNY 70,949,173.93. The note attributes that reduction to the Chengdu minority-stake acquisition consideration exceeding the corresponding book net assets. This reserve movement is distinct from ordinary operating expense and the separately reported other-comprehensive-income acquisition premium.

Parent-only net profit / 2009 / listed parent

RMB -7,176,393.97

Reported parent retained earnings / 2009 / listed parent

RMB -131,645,174.82

Reported capital reserve / 2009 / listed parent

RMB 53,696,990.29

Reported capital reserve / 2009 / consolidated

RMB 70,949,173.93

Capital reserve decrease / 2009 / consolidated

RMB 117,803,822.71

The financial auditor concluded that the FY2009 consolidated and parent financial statements fairly presented, in all material respects, financial position, results and cash flows under the Chinese Accounting Standards for Business Enterprises issued in 2006. The financial audit expressly did not aim to give an opinion on internal-control effectiveness. A separate assurance report concluded that financial-reporting-related controls were effective in all material respects at December 31, 2009; it also described inherent limitations and the risk of projecting effectiveness into future periods. Both reports are dated March 29, 2010. The board’s own full-year control self-assessment is a separate management statement. The issuer said it changed auditors to align with its controlling group’s common-auditor requirement, without reporting an audit dispute as the reason. These opinions do not provide assurance on every production risk or on this website’s research. The separate control report states a restricted annual-report-disclosure purpose, which is recorded for source-use review.

A proposed share-swap absorption merger of Jushi Group did not proceed under the earlier shareholder authorization. In issuer announcement 2009-027, signed on 6 November 2009 and disclosed on 7 November, China Fiberglass explained that the proposal had been approved by its board on 7 December 2007 and by an extraordinary shareholder meeting on 27 December 2007. The shareholder resolution was valid for twelve months, and the company filed its application with the China Securities Regulatory Commission (CSRC) on 28 December 2007. It did not obtain all required approvals within the resolution's validity period, so the merger preconditions were not completed and the resolution automatically ceased to be effective. The company had disclosed that expiry on 30 December 2008 and subsequently submitted a request to withdraw the application. By the November 2009 announcement, it had received CSRC notice [2009]184 terminating review of the application. The announcement did not give an exact receipt date. This describes expiry, withdrawal and the end of regulatory review; it does not report completion of the proposed merger. It also does not identify every missing approval or quantify the cost of abandoning the application.