China Jushi FY2010: Business overview

Management describes FY2010 as a recovery in downstream composite-material demand, including wind power, transport and infrastructure, accompanied by stronger exports. Consolidated revenue reached CNY 4,765,021,506.34, up 50.27%. Consolidated operating profit was CNY 463,842,784.20, compared with an operating loss of CNY 399,182,841.99 in the prior-year comparative. The issuer attributes the revenue and operating-profit improvement to higher glass-fiber selling prices and sales volume. It does not provide a quantified bridge separating price, volume, product mix and changes in the consolidation perimeter. Selling expenses rose with transport and packaging needs, while management expenses rose with technical-development charges and wages. These costs help explain why a product revenue-cost margin is different from consolidated operating profit. Management also reports commissioning four new production lines and one upgrade of an existing line. Their nominal capacities are not all incremental group capacity, and commissioning is not a measure of annual output or utilization. The comparative figures here use the presentation in the FY2010 accounts; they should not be silently substituted with an earlier, unadjusted FY2009 series.

Reported business revenue / 2010 / consolidated total

RMB 4,765,021,506.34

Reported business revenue growth / 2010 / consolidated total

50.27%

Reported consolidated operating profit / 2010 / consolidated total

RMB 463,842,784.2

Reported consolidated operating profit / 2009 / consolidated fy2010 prior year comparative

RMB -399,182,841.99

The FY2011 operating plan emphasizes higher-value products and faster promotion of new formulations, overseas factory and sales-network development, process efficiency and risk management. These are management's plans as described in the FY2010 report, not realized FY2011 capacity, sales or recruitment. The disclosure index lists a December 7, 2010 announcement of an intention to acquire a GIBSON glass-fiber company, as well as a product-price-increase announcement. The index alone supplies neither acquisition completion nor transaction terms, acquired capacity or achieved price realization. It does not establish that this named acquisition target is the same legal entity as GIBSON ENTERPRISES INC. in the leading-customer table. The separate proposed purchase of Jushi's remaining interest and its conditional compensation forecasts retain their own pending-approval scope. Routine training and safety intentions are condensed rather than used to imply a verified outcome.