China Jushi FY2010: Markets, customers and suppliers

Glass fiber and its products generated CNY 4,418,283,700.24 of main-business revenue and CNY 3,106,434,238.90 of cost in FY2010. Revenue rose 45.39%, while cost rose 19.22%. The product table reports a 29.69% margin, up 15.43 percentage points. Although the original column labels this an operating-profit margin, its arithmetic corresponds to revenue less the listed product cost divided by revenue. It is therefore a product revenue-cost margin, rather than group operating profit after selling, management and financing expenses. The separate other-product category generated CNY 245,678,458.25 of revenue and CNY 133,657,341.91 of cost. Its reported 45.60% margin should not be applied to glass fiber or every group activity. These are annual product-category totals, not separate measures for E6, ViPro, individual yarn grades or factories. The report describes recovery in prices and volume, but this table does not provide the annual tonnage, realized unit price or plant utilization needed to divide those effects precisely.

Reported business revenue / 2010 / glass fiber product main business

RMB 4,418,283,700.24

Reported business cost / 2010 / glass fiber product main business

RMB 3,106,434,238.9

Reported product revenue cost margin / 2010 / glass fiber product main business

29.69%

Reported business revenue growth / 2010 / glass fiber product main business

45.39%

Reported business cost growth / 2010 / glass fiber product main business

19.22%

Reported product margin change / 2010 / glass fiber product main business

15.43 percentage points

Reported business revenue / 2010 / other product main business

RMB 245,678,458.25

Reported business cost / 2010 / other product main business

RMB 133,657,341.91

Reported product revenue cost margin / 2010 / other product main business

45.6%

Consolidated revenue of CNY 4,765,021,506.34 consists of CNY 4,663,962,158.49 of main-business revenue and CNY 101,059,347.85 of other-business revenue. Their respective costs of CNY 3,240,091,580.81 and CNY 45,324,934.31 reconcile to consolidated cost of CNY 3,285,416,515.12. Within main business, the glass-fiber and other-product rows add to the same main-business total as the domestic and foreign geographical rows. Product mix and market geography are alternative views, not additional sales to sum together. Other products in main business are also different from other-business income. The latter includes CNY 82,898,535.09 of materials sales, CNY 4,912,372.91 of electricity sales and CNY 13,248,439.85 in a residual category. These categories do not supply a standalone revenue series for each advanced material or project. The listed-parent profit statement has no operating revenue in its revenue column, while the consolidated statement includes subsidiaries. A parent-only result cannot represent the revenue or product economics of the whole operating group.

Reported business revenue / 2010 / consolidated main business

RMB 4,663,962,158.49

Reported business revenue / 2010 / consolidated other business

RMB 101,059,347.85

Reported business cost / 2010 / consolidated main business

RMB 3,240,091,580.81

Reported business cost / 2010 / consolidated other business

RMB 45,324,934.31

Reported business cost / 2010 / consolidated total

RMB 3,285,416,515.12

Reported business revenue / 2010 / materials other business

RMB 82,898,535.09

Reported business revenue / 2010 / electricity other business

RMB 4,912,372.91

Reported business revenue / 2010 / residual other business

RMB 13,248,439.85

Domestic main-business revenue was CNY 2,273,620,869.12, up 62.85%, and foreign main-business revenue was CNY 2,390,341,289.37, up 42.18%. The respective costs were CNY 1,495,595,024.95 and CNY 1,744,496,555.86. These rows add to main-business revenue and cost, excluding other-business income. Selling-market geography is different from a factory location or a subsidiary registration. Management reports 13 overseas production and sales subsidiaries and relationships with customers in more than 70 countries and regions. This describes a network; it does not establish 13 overseas factories or production in every customer market. The issuer identifies Tongxiang proximity to Shanghai port as useful for exporting fiber and importing equipment and materials, and Zhejiang raw-material sources as a potential cost advantage. Those are attributed logistical explanations, not a separately verified freight-cost comparison. The annual regional totals do not identify revenue by advanced fiber formulation, customer end use or individual overseas subsidiary.

Reported business revenue / 2010 / domestic main business

RMB 2,273,620,869.12

Reported business revenue / 2010 / foreign main business

RMB 2,390,341,289.37

Reported business cost / 2010 / domestic main business

RMB 1,495,595,024.95

Reported business cost / 2010 / foreign main business

RMB 1,744,496,555.86

Reported business revenue growth / 2010 / domestic main business

62.85%

Reported business revenue growth / 2010 / foreign main business

42.18%

The five leading disclosed customers contributed CNY 950,538,622.40, or 19.95% of consolidated revenue. They were GIBSON ENTERPRISES INC., with CNY 403,739,224.57; HELM AG, CNY 136,066,264.58; POLYBASE LIMITED, CNY 135,906,252.41; CNBM Group Import and Export Company, CNY 134,546,051.49; and Zhenshi Group Hengshi Fiber Foundation, CNY 140,280,829.35. The related-party note identifies the CNBM importer as under common control with a shareholder, and Hengshi as controlled by the second-largest shareholder. This supplies commercial and ownership context without requiring a separate investigation of each customer. The amounts in the leading-customer table are already part of consolidated sales. They must not be added again as related-party revenue, and broader connected-party trade categories need not have the same amount as this customer table. The disclosures identify annual sales relationships, rather than an exclusive contract, a verified end-use allocation or a closing receivable balance. Supplier concentration is a different question: this leading-customer total does not establish a top-five supplier purchase share.

Reported top five customer sales / 2010 / consolidated annual

RMB 950,538,622.4

Reported top five customer share / 2010 / consolidated annual

19.95%

Reported named customer sales / 2010 / gibson enterprises annual

RMB 403,739,224.57

Reported named customer sales / 2010 / helm ag annual

RMB 136,066,264.58

Reported named customer sales / 2010 / polybase limited annual

RMB 135,906,252.41

Reported named customer sales / 2010 / cnbm import export annual

RMB 134,546,051.49

Reported named customer sales / 2010 / zhenshi hengshi annual

RMB 140,280,829.35

The related-trade table reports CNY 143,759,319.32 of goods, materials, electricity and wastewater-treatment transactions with Zhenshi Hengshi, compared with CNY 140,280,829.35 in the customer-sales table. The broader transaction description is retained without allocating the difference among utilities and other services. For CNBM Import and Export, the related stock-goods amount is CNY 135,592,205.72, while the customer table gives CNY 134,546,051.49. The report does not provide a complete bridge between those figures. Neither value is silently substituted for the other. Transactions with related entities therefore require both a party relationship and a defined sales scope; the annual customer's ranking is not a complete related-party transaction ledger.

Reported related sales / 2010 / hengshi broader goods material utilities

RMB 143,759,319.32

Reported related sales / 2010 / cnbm import export stock goods

RMB 135,592,205.72

Management says the Tongxiang manufacturing base's location near Shanghai Port supports finished-fiber exports and imports of selected equipment and raw materials. It also attributes some cost advantage to major raw-material origins within Zhejiang. These statements explain the company's claimed logistics position, without supplying a precise port distance, factory address, transport-cost saving or mineral ownership. The report separately describes purchases of overseas inputs and equipment as a possible partial offset to currency exposure. That planned response is not a quantified natural hedge or evidence that all inputs are locally sourced. Existing named-supplier and freight facts retain their transaction directions; this geographic context does not turn supplier relations into ownership of their mines or facilities.

Management identifies trade protection as a constraint on exports. The report describes investigations involving Jushi in the European Union, India and Turkey, with notices known in December 2009 and January 2010. It then says that in January 2011 the issuer learned the Turkey and India final outcomes. Turkey imposed a 23.75% final duty on specified investigated exports including Jushi's, reduced from a 38% provisional rate; India set an 18.67% rate for Jushi's relevant products. These are issuer-reported post-year-end developments, not FY2010 closing rates, taxes on every group sale or current legal guidance. The exact days on which the issuer learned the outcomes are not supplied. The source states historical expiry dates of December 31, 2015 for Turkey and January 6, 2016 for India; they do not establish that no later extension occurred. The possible learning window is January 2011, while precise statutory effective dates remain unestablished here. Lower final rates do not mean duty-free access, and the report does not quantify a complete duty-related sales or earnings loss.

The FY2010 report says the issuer learned the European Union final outcome in March 2011: a 13.8% final antidumping duty on relevant investigated products from Jushi and other Chinese exporters, reduced from the provisional 43.6% rate. This is a historical issuer disclosure about specified products, not current legal guidance or a duty on every group sale. The exact learning day is not supplied. The report is signed March 16, 2011, which bounds the possible learning window in March without establishing an exact event day or duty effective date. The source gives March 15, 2016 as the stated historical expiry; it does not independently establish that no later extension occurred. Management describes the outcome as relatively favorable but still acknowledges continuing trade-protection risk. This post-year-end context cannot be attributed to FY2010 realized earnings or substituted for a December 31, 2010 rate; the report gives no complete sales or profit-loss quantification.