China Jushi FY2010: Cash generation and working capital

At December 31, 2010, the consolidated balance sheet reported monetary funds of CNY 1,606,912,178.08, while the cash-flow note reported available cash of CNY 1,395,847,478.08. The CNY 211,064,700 difference matches three deposit categories: a CNY 15,000,000 pledged fixed deposit, CNY 146,064,700 of bank-pledge guarantee deposits and CNY 50,000,000 of other guarantee deposits. The cash note separately identifies cash on hand and bank and other monetary funds available for payment. The monetary-funds note states that, apart from these three categories, the other listed funds can be used after notifying the relevant parties. Consequently, the whole other-monetary-funds balance should not be treated as unavailable. The distinction matters when assessing resources for construction, operating purchases and debt service; a balance-sheet monetary-funds headline alone overstates the cash-flow measure of available cash.

Reported monetary funds / 2010 / consolidated

RMB 1,606,912,178.08

Reported monetary-funds balance / 2010 / consolidated

RMB 1,395,847,478.08

Reported restricted deposits / 2010 / consolidated

RMB 211,064,700

Consolidated operating cash flow was positive CNY 783,662,952.34 in FY2010, compared with an outflow of CNY 126,622,041.82 in FY2009. Cash received from selling goods and providing services was CNY 4,774,034,852.48; cash paid for goods and services was CNY 3,066,648,735.49. These are receipts and payments rather than accrual revenue and production cost, so they should not replace the product-economics measures. The profit-to-cash reconciliation begins with consolidated net profit of CNY 442,899,999.43, including minority interests. It includes noncash adjustments and changes in operating inventories, receivables and payables. Its depreciation/depletion adjustment of CNY 1,001,696,058.94 differs from the fixed-asset note depreciation measure; the report does not provide a bridge that warrants labeling the entire adjustment ordinary machinery depreciation or metal consumption. The parent-only operating cash flow was an outflow of CNY 262,226,056.20, showing why the listed parent and its consolidated operating subsidiaries must remain separate scopes.

Reported operating cash flow / 2010 / consolidated

RMB 783,662,952.34

Reported operating cash flow / 2009 / consolidated prior comparative

RMB -126,622,041.82

Reported cash sales receipts / 2010 / consolidated

RMB 4,774,034,852.48

Reported cash supplier payments / 2010 / consolidated

RMB 3,066,648,735.49

Reported consolidated net profit / 2010 / consolidated

RMB 442,899,999.43

Reported cash depreciation adjustment / 2010 / consolidated

RMB 1,001,696,058.94

Reported operating cash flow / 2010 / parent only

RMB -262,226,056.2

Cash paid to acquire or construct fixed assets, intangible assets and other long-term assets was CNY 420,714,689.07 in FY2010, down from CNY 1,321,692,805.15 in FY2009. This cash expenditure is distinct from project budgets, in-year construction additions and assets transferred from construction in progress. The cash-flow statement separately reports CNY 351,914,794.10 of investment payments and CNY 88,725,729.90 of net cash paid to acquire subsidiaries or other businesses. Investment cash inflows were CNY 38,474,630.71, including disposal receipts, and total investing cash flow was an outflow of CNY 822,880,582.36. Thus, the positive operating cash flow did not by itself cover the complete investing outflow. Readers can follow manufacturing expansion and acquired operations without treating every investing payment as factory capital expenditure or allocating an aggregate cash number to a named line without a source bridge.

Reported cash capital expenditure / 2010 / consolidated

RMB 420,714,689.07

Reported cash capital expenditure / 2009 / consolidated prior comparative

RMB 1,321,692,805.15

Reported cash investment payments / 2010 / consolidated

RMB 351,914,794.1

Reported investing cash flow / 2010 / consolidated

RMB -822,880,582.36

Reported investing cash inflows / 2010 / consolidated

RMB 38,474,630.71

The subsidiary/business acquisition note reports an acquisition price of CNY 122,122,507, gross cash paid of CNY 120,099,957 and acquired cash of CNY 31,374,227.10. Deducting the acquired cash gives the reported net acquisition payment of CNY 88,725,729.90. The disposal note similarly distinguishes a disposal price of CNY 46,114,000 from cash received of CNY 35,680,000 and cash leaving the group with the disposed businesses of CNY 6,558,271.40, producing net disposal receipts of CNY 29,121,728.60. These aggregate note figures explain the cash-flow effects of the changing business perimeter. Neither transaction price is interchangeable with its gross or net cash amount, and the cited cash note does not allocate every payment to an individual acquired or disposed company. Subsidiary net assets and reported profits therefore remain separate from this cash reconciliation.

Reported acquisition price / 2010 / aggregate acquisitions

RMB 122,122,507

Reported acquisition gross cash / 2010 / aggregate acquisitions

RMB 120,099,957

Reported acquired cash / 2010 / aggregate acquisitions

RMB 31,374,227.1

Reported acquisition net cash / 2010 / aggregate acquisitions

RMB 88,725,729.9

Reported disposal price / 2010 / aggregate disposals

RMB 46,114,000

Reported disposal gross cash / 2010 / aggregate disposals

RMB 35,680,000

Reported disposed cash / 2010 / aggregate disposals

RMB 6,558,271.4

Reported disposal net cash / 2010 / aggregate disposals

RMB 29,121,728.6

The group received CNY 6,610,237,162.59 from borrowing and CNY 500,000,000 from bond issuance during FY2010. It paid CNY 6,841,143,726.90 to repay debt. These are annual financing flows, not balances outstanding at year-end or net new capacity funding. Cash paid for dividends, profit distributions and interest totaled CNY 526,471,045.40; the combined caption should not be labeled entirely interest or entirely listed-shareholder dividends. Other financing payments were CNY 196,064,700. Total financing cash flow was an outflow of CNY 450,307,004.71. Combining operating, investing and financing flows with a negative exchange-rate effect of CNY 11,049,157.97 gives the reported CNY 500,573,792.70 decrease in cash. Opening cash of CNY 1,896,421,270.78 consequently declined to CNY 1,395,847,478.08, despite the operating recovery.

Reported cash borrowing receipts / 2010 / consolidated

RMB 6,610,237,162.59

Reported cash bond receipts / 2010 / consolidated

RMB 500,000,000

Reported cash debt repayments / 2010 / consolidated

RMB 6,841,143,726.9

Reported cash dividends profit interest / 2010 / consolidated

RMB 526,471,045.4

Reported cash other financing payments / 2010 / consolidated

RMB 196,064,700

Reported financing cash flow / 2010 / consolidated

RMB -450,307,004.71

Reported cash fx effect / 2010 / consolidated

RMB -11,049,157.97

Reported cash change / 2010 / consolidated

RMB -500,573,792.7

The consolidated balance sheet reports net trade receivables of CNY 1,109,673,906 at December 31, 2010, compared with CNY 1,171,190,198.68 at the preceding year-end. The note separates the FY2010 gross balance of CNY 1,154,728,968.92 from the CNY 45,055,062.92 allowance. Management attributes the lower receivable share of assets to a changed settlement policy and faster collection. That is an issuer explanation, rather than a measured causal decomposition of the annual cash recovery. The aging table places 86.07% of gross receivables within one year, with CNY 12,876,496.30 older than five years and fully provided in that row. Aging and an allowance indicate the reported credit profile; they do not prove every customer will pay. The report also records CNY 2,029,021.87 of trade-receivable write-offs during FY2010, distinct from the closing allowance and the remaining balance. Readers should therefore assess sales growth alongside collection, aging and credit loss, without treating a receivable decline as identical to cash received.

The five largest disclosed trade-receivable balances totaled CNY 202,157,833.63, or 17.50% of gross receivables at year-end. They were Feicheng Sanying Fiber Industry, Gibson Enterprises, Shandong Shenghao Glass Fiber, Yongchang Sekisui Composite Materials and Poly Base. Their respective balances were CNY 70,954,014.58, CNY 53,696,135.35, CNY 28,643,488.58, CNY 24,710,873.77 and CNY 24,153,321.35. The note classifies these counterparties as third parties. This balance concentration describes credit outstanding at a date, whereas the annual customer-sales table measures trading over the reporting year and reports a different percentage. The two rankings and denominators cannot substitute for one another. A named customer relationship also does not establish a separate factory location, a particular end-use order or the customer's own financial condition. The names and amounts are retained for research into the issuer's collection exposure; the counterparties are not recursively researched.

Closing bills receivable totaled CNY 435,368,763.27, compared with CNY 256,955,377.87 at the preceding year-end. The FY2010 balance consisted of CNY 428,242,856.51 of bank-acceptance bills and CNY 7,125,906.76 of commercial-acceptance bills. These are credit and settlement instruments, rather than the available-cash balance. The note reports CNY 360,000 of bills transferred into trade receivables because the issuers could not perform their payment obligations. It also reports 647 endorsed bills not yet matured, totaling CNY 151,330,767.73, separately from discounted bills used to obtain borrowing. A transfer, an endorsement and borrowing against an unmatured bill are different events. The disclosed outstanding bills therefore help explain how customers settle and how the group manages operating credit, but they are not added to cash receipts or treated as a measured guarantee that all underlying customer balances have been paid.

Management links the inventory increase to four new production lines, a commissioned retrofit and larger raw-material reserves. Closing inventory had a gross balance of CNY 1,134,382,698.33, an allowance of CNY 4,923,068.60 and a net balance of CNY 1,129,459,629.73. Raw materials were CNY 232,324,415.57, up from CNY 122,744,175.60. Finished goods had a gross balance of CNY 863,099,008.22 and a net balance of CNY 860,635,628.88. These categories show how manufacturing expansion affected both inputs held and completed products awaiting sale; the note does not quantify how much stock belongs to each named line. Entrusted-processing materials of CNY 2,459,689.26 were fully covered by an allowance, with the net-value cell left blank. That blank is not imported as a reported zero field. The net inventory increase of CNY 218,675,383.22 differs from the cash-flow reconciliation adjustment of CNY 211,936,175.35 by CNY 6,739,207.87. The report gives no complete bridge for that difference, so the balance-sheet movement is not substituted into operating cash flow.

Reported gross inventory / 2010 / consolidated

RMB 1,134,382,698.33

Reported inventory allowance / 2010 / consolidated

RMB 4,923,068.6

Reported net inventory / 2010 / consolidated

RMB 1,129,459,629.73

Reported net inventory / 2009 / consolidated prior comparative

RMB 910,784,246.51

Reported raw material inventory / 2010 / consolidated

RMB 232,324,415.57

Reported raw material inventory / 2009 / consolidated prior comparative

RMB 122,744,175.6

Reported finished goods gross / 2010 / consolidated

RMB 863,099,008.22

Reported finished goods net / 2010 / consolidated

RMB 860,635,628.88

Reported entrusted processing inventory / 2010 / consolidated

RMB 2,459,689.26

Reported cash inventory adjustment / 2010 / consolidated

RMB -211,936,175.35

Trade payables rose to CNY 1,764,116,893.37 from CNY 383,491,749.77. The management summary attributes the larger share of assets to equipment purchases not yet paid under contractual terms; the financial-change discussion instead highlights unpaid purchases of platinum-rhodium alloy. Both issuer explanations are retained without allocating the total between equipment and metal purchases. Of the closing trade-payable balance, CNY 144,053,549.99 was older than one year and described as unsettled. Bills payable were CNY 84,956,517.75, which the note says would mature in the next accounting period. These obligations are separate from cash already paid to suppliers. Customer advances were CNY 124,029,353.36, including CNY 53,362,418.20 older than one year and unsettled. They represent a different direction of operating credit and are not automatically recognized revenue or evidence of canceled orders. The report attributes irregular opening-to-closing aging relationships for advances to changes in the consolidation perimeter; aging changes alone therefore cannot be treated as a customer-level collection history.

Reported trade payables / 2010 / consolidated

RMB 1,764,116,893.37

Reported trade payables / 2009 / consolidated prior comparative

RMB 383,491,749.77

Reported aged trade payables / 2010 / older than one year

RMB 144,053,549.99

Bills payable / 2010 / consolidated

RMB 84,956,517.75

Customer advances in contract liabilities / 2010 / consolidated

RMB 124,029,353.36

Reported aged customer advances / 2010 / older than one year

RMB 53,362,418.2

Supplier prepayments had a gross balance of CNY 177,298,798.32 and an allowance of CNY 2,363,966.25, leaving CNY 174,934,832.07 net on the consolidated balance sheet. The largest disclosed prepayment recipients include air-conditioning equipment, liquefied natural gas, coal, industrial gas and gas-network businesses. The amounts support research into input and equipment settlement, but a prepayment alone does not prove actual delivery, a new factory or a completed supply contract. Other receivables separately totaled CNY 150,125,949.54 gross with CNY 8,021,881.69 of allowances and CNY 142,104,067.85 net. The note lists CNY 18,700,000 due from Jiujiang Glass Fiber Factory among the largest balances. This named nontrade claim is not presented as product-sales revenue or ordinary trade receivables. The report warns that changes in consolidation affect the aging comparison of prepayments and other receivables. These categories remain separate from customer credit, and no transaction-level cash bridge or counterparty financial condition is inferred.

Reported supplier prepayments gross / 2010 / consolidated

RMB 177,298,798.32

Reported supplier prepayment allowance / 2010 / consolidated

RMB 2,363,966.25

Reported supplier prepayments net / 2010 / consolidated

RMB 174,934,832.07

Reported gross other receivables / 2010 / consolidated

RMB 150,125,949.54

Reported other receivable allowance / 2010 / consolidated

RMB 8,021,881.69

Reported other receivables net / 2010 / consolidated

RMB 142,104,067.85

Reported named other receivable / 2010 / jiujiang glass fiber factory

RMB 18,700,000

Parent-company other receivables were CNY 693,620,899.97 gross, with CNY 28,745,939.41 of allowances, giving CNY 664,874,960.56 net. The largest balances were CNY 550,000,000 due from Jushi, CNY 131,874,634.94 from Beixin and CNY 10,000,000 from Luxin. These parent-to-subsidiary funding balances are eliminated in consolidated accounts, so they are not added to the group asset total as independent external resources. The five largest balances together were CNY 693,024,572.94, or 99.91% of the gross parent balance; the other two named entries were Shanghai Huajian and Bohai Chemical. The report does not classify every one of those five as the same subsidiary relationship. A broad statement about no funds supplied to controlling shareholders is a different party and direction scope from funds owed by the parent's own subsidiaries. Parent receivables, consolidated customer credit and shareholder funding are thus kept separate.

Parent long-term investments totaled CNY 963,216,490.65 before impairment; deducting CNY 12,327,935.72 reconciles to the CNY 950,888,554.93 net balance-sheet asset. The investment note identifies cost-method holdings of CNY 796,765,769.39 in Jushi and CNY 88,231,926.05 in Beixin. These parent investment balances are not added to consolidated subsidiary assets or treated as market valuations. Parent equity-method investment losses of CNY 1,414,915.64 in Nanjing Huafu and CNY 72,809.15 in Shanghai Huajian sum to the parent investment-income loss of CNY 1,487,724.79. The financial statements use Chinese Accounting Standards. Tianzhi International issued an unmodified financial-statement opinion dated March 16, 2011, covering parent and consolidated statements. That audit expressly says its consideration of controls was for audit procedures and was not an opinion on control effectiveness. Management separately mentions an internal-control audit. Neither financial-statement assurance nor management assertions constitute independent editorial approval of this website's analysis.

Other fixed assets use straight-line depreciation, with the report listing a 14-year useful life for machinery and a range of 10 to 40 years for buildings. Precious-metal bushings follow the maintenance-loss treatment described separately. The fixed-asset note reports FY2010 depreciation of CNY 454,144,375.89, while the cash-flow reconciliation presents a broader depreciation and depletion line of CNY 1,001,696,058.94. Their difference is CNY 547,551,683.05, exactly the precious-metal asset reduction in the rollforward. This arithmetic match does not establish a disclosed bridge or prove that every metal reduction was production loss; the report does not provide that full reconciliation. It also reports assets still in use after being fully depreciated with original cost of CNY 560,139,563.90 and disclosed net value of CNY 17,090,767.87. These are accounting values, not a measured remaining service life, maintenance requirement or replacement budget. Readers can distinguish machinery depreciation, the special production-material cost treatment and cash-flow presentation without merging them into one performance measure.

Reported fixed asset depreciation charge / 2010 / consolidated

RMB 454,144,375.89

Reported fully depreciated assets in use original / 2010 / consolidated

RMB 560,139,563.9

Reported fully depreciated assets in use net / 2010 / consolidated

RMB 17,090,767.87

Zhejiang Yushi International Logistics supplied CNY 78,433,826.23 of sales-goods transportation and CNY 102,867,589.58 of freight for materials and engineering equipment. The classification assigns the first to selling expenses and the latter to raw materials and construction in progress. Reported same-category shares of 64.65% and 9.17% do not use total group cost as their denominator. These disclosures explain how distribution and expansion-related freight involved a shareholder-linked provider, but they do not establish route volumes, a separately completed equipment project or that every amount was paid in cash in the year.

Reported related freight / 2010 / zhejiang yushi sales transport

RMB 78,433,826.23

Reported related freight / 2010 / zhejiang yushi input and equipment transport

RMB 102,867,589.58

Closing related trade receivables were CNY 12,928,930.57 gross, with CNY 585,709.46 of allowances. The note separately reports CNY 9,904,555.06 of other receivables and CNY 1,620,191.05 of allowances, CNY 2,112,493.87 of trade payables, CNY 8,065,812.42 of advances received and CNY 8,622.99 of other payables. These are different claim and obligation types, not values to combine into customer revenue. The opening other-payable balance included CNY 351,764,794.10 of Chengdu equity-transfer consideration. Its current cell is blank; that is not imported as a reported zero or presented as still outstanding at year-end. Blank current entries for Gibson and Panding also do not establish zero company-wide sales or balances. Reporting perimeter and party classification must remain explicit when comparing opening and closing related balances.

Reported related-party trade receivables gross / 2010 / related closing

RMB 12,928,930.57

Reported related trade receivable allowance / 2010 / related closing

RMB 585,709.46

Reported related other receivables gross / 2010 / related closing

RMB 9,904,555.06

Reported related other receivable allowance / 2010 / related closing

RMB 1,620,191.05

Reported related-party trade payables / 2010 / related closing

RMB 2,112,493.87

Reported related advances received / 2010 / related closing

RMB 8,065,812.42

Related-party other payables / 2010 / related closing

RMB 8,622.99

Related-party other payables / 2010 / related opening

RMB 357,146,488.15

Reported related equity transfer payable / 2010 / chengdu equity transfer opening

RMB 351,764,794.1

Net profit attributable to the listed company owners was CNY 205,961,890.01; this is an accounting profit measure, not cash distributed to shareholders. The report deducts CNY 74,468,670.36 of nonrecurring results after tax and minority-interest effects, leaving CNY 131,493,219.65. The gross nonrecurring subtotal of CNY 86,950,829.39 is not the same owner-profit amount. It includes asset-disposal results, specified government support, entrusted-loan income and other nonoperating items, followed by tax and minority-interest adjustments. The adjusted amount is a disclosed classification for FY2010, not proof that every remaining contribution will recur. Reported operating profit also includes investment income under the statement presentation; it should not be relabeled profit solely from glass-fiber production.

Reported nonrecurring gross subtotal / 2010 / consolidated annual

RMB 86,950,829.39

Recognized government-grant income was CNY 34,227,276.76. The report classifies CNY 25,237,913.48 of that income as nonrecurring, while the cash-flow note reports CNY 25,533,945.73 received in grants. The recognition, classification and receipt measures cannot substitute for one another. Disclosed support covers fiscal returns, technology, equipment, energy efficiency, industrial recycling, trade and production-related initiatives. Examples include CNY 1,000,000 for energy saving and circular industry, CNY 350,000 for reclaimed-water recovery, CNY 300,000 for industrialization of medium-alkali SMC untwisted roving, and CNY 945,000 of interest support for a pyrophyllite grinding line. A grant label does not establish a project's commissioning, actual production or identity with every similarly named project. The report does not supply a complete cash-to-income bridge or allocate all income outside the nonrecurring category by project.

Reported grant income / 2010 / consolidated annual

RMB 34,227,276.76

Reported nonrecurring grant income / 2010 / consolidated annual

RMB 25,237,913.48

Reported grant cash received / 2010 / consolidated annual

RMB 25,533,945.73

Reported grant income / 2010 / energy saving circular industry

RMB 1,000,000

Reported grant income / 2010 / reclaimed water recovery

RMB 350,000

Reported grant income / 2010 / medium alkali smc roving industrialization

RMB 300,000

Reported grant income / 2010 / pyrophyllite grinding line interest support

RMB 945,000

Selling expenses were CNY 121,317,073.51, including CNY 82,655,786.84 of transportation. Management attributes expense growth to greater sales activity and related transport and packaging needs. Administration expenses were CNY 424,892,331.41, including CNY 136,869,955.72 of technical-development expense. The separate CNY 21,454,533.93 research cash payment is not the same measure or an interchangeable total R&D figure. Financing expense was CNY 481,472,052.21, comprising CNY 507,902,334.32 of interest expense, less CNY 29,417,957.69 of interest income, a negative exchange-loss line of CNY 12,299,539.67 and CNY 15,287,215.25 of other items. Those annual accounting charges are not identical to cash interest paid or closing debt. The report provides issuer explanations, not a quantified price, volume or currency decomposition of the recovery.

Reported selling expense / 2010 / consolidated annual

RMB 121,317,073.51

Reported selling transport expense / 2010 / consolidated annual

RMB 82,655,786.84

Reported administration expense / 2010 / consolidated annual

RMB 424,892,331.41

Reported technical development expense / 2010 / consolidated annual

RMB 136,869,955.72

Reported research cash payment / 2010 / consolidated annual

RMB 21,454,533.93

Reported financing expense / 2010 / consolidated annual

RMB 481,472,052.21

Reported interest expense / 2010 / consolidated annual

RMB 507,902,334.32

Reported interest income / 2010 / consolidated annual

RMB 29,417,957.69

Reported exchange loss / 2010 / consolidated annual

RMB -12,299,539.67

Reported other financing expense / 2010 / consolidated annual

RMB 15,287,215.25

The FY2010 tax note describes entity-specific rates and concessions: Jushi and Chengdu at 15%, Panding at 12.5%, Beixin at 22%, and specified other domestic entities at 25%, with separate local and overseas rules. Jiujiang's stated refund concerns a share of the locally retained income-tax amount, not a blanket reduction of the entire group tax rate. These are historical disclosures, not current tax guidance. Group current income tax of CNY 56,397,977.59 plus CNY 8,660,680.71 of deferred-tax adjustment gives CNY 65,058,658.30 of expense. Deducting that expense from CNY 507,958,657.73 of pretax profit gives CNY 442,899,999.43 of total consolidated net profit before the owner/minority split. Entity concession rates, taxable income, current tax and consolidated tax expense therefore have different scopes.

Reported current income tax / 2010 / consolidated annual

RMB 56,397,977.59

Reported deferred tax adjustment / 2010 / consolidated annual

RMB 8,660,680.71

Reported consolidated income-tax expense / 2010 / consolidated annual

RMB 65,058,658.3

Recognized deferred-tax assets were CNY 47,388,148.48, comprising CNY 20,147,678.63 related to impairment and CNY 27,240,469.85 related to deductible operating losses. The unrecognized table separately totals CNY 122,577,820.18 of deductible items, including CNY 99,579,716.33 of losses. Those underlying items are not a recognized tax asset of that amount and are not assured future cash recovery. The deferred-tax liability of CNY 237,643.23 is distinct from its CNY 950,572.91 taxable temporary difference. Goodwill declined from CNY 16,678,380.56 to CNY 11,782,175.81 as the CNY 4,896,204.75 Junan amount left the balance. The report states that its goodwill impairment tests found no impairment; that accounting conclusion is not an assurance of zero business risk or a market valuation.

Deferred-tax assets before offset / 2010 / consolidated closing

RMB 47,388,148.48

Deferred-tax assets before offset / 2010 / impairment closing

RMB 20,147,678.63

Deferred-tax assets before offset / 2010 / deductible losses closing

RMB 27,240,469.85

Total unrecognized deductible base / 2010 / consolidated closing

RMB 122,577,820.18

Reported unrecognized loss base / 2010 / consolidated closing

RMB 99,579,716.33

Reported deferred tax liability / 2010 / consolidated closing

RMB 237,643.23

Reported taxable temporary difference / 2010 / fixed asset depreciation closing

RMB 950,572.91

Reported goodwill / 2010 / consolidated opening

RMB 16,678,380.56

Reported goodwill disposal / 2010 / junan exit

RMB 4,896,204.75

Reported goodwill / 2010 / consolidated closing

RMB 11,782,175.81

The FY2010 accounts retrospectively changed the FY2009 treatment of losses attributable to minority shareholders in Junan and Shangmei. Instead of stopping minority loss allocation at their opening equity, excess losses continued to reduce minority equity. The detailed note raises FY2009 opening retained earnings by CNY 2,067,949.27 and raises profit attributable to the parent by CNY 1,616,419.34, changing the reported owner loss from CNY 154,769,883.68 to CNY 153,153,464.34. The board discussion separately reports CNY 3,684,368.61 added to owner equity. These are retrospective attribution changes, not incremental FY2010 operating cash or revenue. A separate adjustment concerns presentation of the prior acquisition of the remaining Chengdu interest: it raises FY2009 other comprehensive income by CNY 230,987,887.68, from negative CNY 223,345,582.75 to positive CNY 7,642,304.93. For the owner comprehensive-income adjustment, the board discussion states CNY 117,803,822.72 while the detailed note states CNY 117,803,822.71. Each source amount retains its role; the one-cent difference is not silently repaired. Comparative figures restated in this FY2010 filing must remain distinguishable from the original FY2009 filing when constructing a cross-period series.

Reported retained earnings adjustment / 2009 / fy2009 opening restatement in fy2010

RMB 2,067,949.27

Reported consolidated owner profit adjustment / 2009 / fy2009 minority loss restatement in fy2010

RMB 1,616,419.34

Reported consolidated owner profit / 2009 / fy2009 unadjusted in fy2010

RMB -154,769,883.68

Reported consolidated owner profit / 2009 / fy2009 restated in fy2010

RMB -153,153,464.34

Reported owner equity adjustment / 2009 / fy2009 minority loss restatement in fy2010

RMB 3,684,368.61

Reported other comprehensive income adjustment / 2009 / fy2009 presentation restatement in fy2010

RMB 230,987,887.68

Reported other comprehensive income / 2009 / fy2009 unadjusted in fy2010

RMB -223,345,582.75

Reported other comprehensive income / 2009 / fy2009 restated in fy2010

RMB 7,642,304.93

Reported owner comprehensive income adjustment / 2009 / fy2009 board presentation restatement in fy2010

RMB 117,803,822.72

Reported owner comprehensive income adjustment / 2009 / fy2009 note presentation restatement in fy2010

RMB 117,803,822.71