China Jushi | FY2011 business review

In FY2011 the listed issuer used the legal English name CHINA FIBERGLASS CO., LTD, abbreviated CFG, and Shanghai A-share code 600176. Its historical notes describe formation on 31 August 1998, while the corporate information gives first registration on 16 April 1999; listing followed on 22 April 1999. These are separate milestones. The predecessor was China Chemical Building Materials Co., Ltd, an English rendering of the historical Chinese name, and the report dates the change to China Fiberglass to 9 December 2004. The registered and office address was No. 10, West Third Ring Middle Road, Haidian District, Beijing. That corporate address should not be mistaken for a glass-fiber production base. The financial notes describe research, production and sales of new materials including glass fiber, together with commercial-property development and operation, housing-product chain operations and logistics. They identify Jushi Group and Beixin Technology Development as the two directly held subsidiary groups, with further subsidiaries below them. Consequently the consolidated annual figures cover a broader legal group than the glass-fiber product table or any individual factory. This historical identity provides the context for the annual business and subsidiary explanations; subsequent company names and addresses belong to later reporting periods.

The company describes introducing Vipro in FY2011 as an alkali-free glass fiber with high strength and high modulus. Modulus concerns stiffness; the report claims higher strength and modulus than its earlier E6 glass fiber but supplies no numerical specification or comparative test conditions in these passages. The stated customer uses are large wind-turbine blades, pressure vessels and pultruded components. These are intended reinforcement applications, not named customer contracts or product-specific sales. The innovation section also identifies pressure-vessel pipes and suitability for large tank-furnace production. This connects product development to the existing glass-fiber manufacturing platform, without establishing a new dedicated production line or incremental capacity. Management presents Vipro as a new technology platform for further product development. Its expected performance and cost-to-performance advantages remain issuer claims rather than independently verified comparisons with every competing material. E6 and Vipro remain identifiable product families; a disclosure of a higher-performance formulation is distinct from proof that every grade has completed qualification or reached a particular annual sales volume.

The report describes developing Compofil by combining continuous glass fiber and chemical fiber through a special process. It says this combined material can be used directly to produce continuous-fiber-reinforced thermoplastic resin composites without adding separate resin. This is the disclosed distinction from supplying a glass-fiber reinforcement alone; the passage does not identify the chemical fiber, resin chemistry or blend proportions. Management associates the product with simpler forming, higher production efficiency and recyclability, and claims improved composite performance without supplying comparative measurements. Its listed application areas include defense, aerospace, new energy, automobiles, construction and sporting equipment. These describe potential uses of the material and must not be read as deliveries to named customers in every sector. The FY2011 passage describes development and intended use; it does not expressly establish the later stable batch-production milestone, customer-specific qualification, annual output or product revenue. The material's constituents, use in thermoplastic-composite forming and disclosed development stage therefore remain separate from claims about realized commercial scale.

The quality discussion lists new ship-classification product certifications recorded as GL, LR and DNV: three, six and five respectively during FY2011. The source identifies these bodies in its preceding paragraph but has inconsistent Chinese wording for GL in the new-certification list; the acronym and reported count are preserved without inventing a different organization. The same list reports four tests labeled FDA, eight labeled RoHS and seven labeled REACH. These are disclosed test counts, not a demonstrated blanket approval for every product or every export market. The company also obtained a company code in the International Material Data System, or IMDS, which the report describes as access to an automotive-industry parts-and-materials database developed jointly by automobile manufacturers. A registration code enables the disclosed database access; it does not establish a supply order from those manufacturers. The report separately describes quality, environmental, occupational-health and measurement management-system certifications. System certification, individual product certification, testing and database registration remain distinct kinds of qualification evidence, without inferred customer volumes or independent confirmation that all requirements for an intended use were met.

Reported product certifications / 2011 / gl new fy2011

3 certifications

Reported product certifications / 2011 / lr new fy2011

6 certifications

Reported product certifications / 2011 / dnv new fy2011

5 certifications

Reported product tests / 2011 / fda new fy2011

4 tests

Reported product tests / 2011 / rohs new fy2011

8 tests

Reported product tests / 2011 / reach new fy2011

7 tests

At the end of FY2011, the report describes three large glass-fiber production bases and 13 tank-furnace lines. The wider report identifies the domestic bases in Zhejiang, Jiangxi and Sichuan; this disclosure describes the existing manufacturing footprint, while the project notes explain individual upgrades and construction. Management also says it designed and built an alkali-free single-furnace line with annual capability of 120,000 tonnes, converted from the original 12 ten-thousand tonnes. That line is an example of disclosed engineering scale, not an extra FY2011 commissioning event or an amount to add again to the group's capacity. The cited passage does not identify the line's location. Management links large bases with production efficiency, stable product quality and manufacturing cost and describes proprietary alkali-free and medium-alkali tank-furnace drawing and waste-fiber recycling technology. Its world-ranking and cost-leadership statements remain company claims. Existing capability, annual output and incremental project capacity therefore require separate evidence rather than being combined into one growth measure.

Reported furnace line count / 2011 / group year end fy2011

13 lines

Reported single furnace annual capacity / 2011 / company described alkali free line fy2011

120,000 tonnes/year

Glass fiber and its products generated CNY 4,581,363,318.30 of main-business revenue and CNY 3,001,096,017.05 of cost in FY2011. Revenue rose 3.69% while cost fell 3.39%. The product table reports a 34.49% margin, up 4.80 percentage points. Although the original column calls it an operating-profit margin, the amount corresponds to revenue less the listed product cost divided by revenue. It is a product revenue-cost margin, not the consolidated operating-profit margin after selling, management and financing expenses. The product row is also narrower than manufacturing-industry revenue and does not measure every yarn grade or plant. Management describes product optimization, technical improvements and cost control as supporting performance, but claims of industry-lowest costs remain attributed claims. The source supplies no separately comparable annual tonnage or unit-price series for this paragraph. Readers should distinguish the improved product margin from the different scale and growth of group operating profit.

Reported business revenue / 2011 / glass fiber product main business

RMB 4,581,363,318.3

Reported business cost / 2011 / glass fiber product main business

RMB 3,001,096,017.05

Reported product revenue cost margin / 2011 / glass fiber product main business

34.49%

Reported business revenue growth / 2011 / glass fiber product main business

3.69%

Reported business cost growth / 2011 / glass fiber product main business

-3.39%

Consolidated revenue of CNY 5,038,391,742.61 comprises CNY 4,895,909,923.87 of main-business revenue and CNY 142,481,818.74 of other-business revenue. Their costs of CNY 3,193,623,861.77 and CNY 36,495,883.11 reconcile to CNY 3,230,119,744.88 of total cost. Within main business, glass-fiber products are accompanied by CNY 314,546,605.57 of other-product revenue and CNY 192,527,844.72 of other-product cost. A separate industry split reports CNY 4,811,631,650.27 of synthetic-material manufacturing revenue and CNY 84,278,273.60 of trading revenue. Both splits cover the same main-business total; other products therefore cannot simply be renamed trading revenue. Other-business income includes waste fiber, materials, energy, self-made equipment, rent and services as well as a residual category. The listed parent has no operating revenue in the financial-statement column, so its investment results are another perimeter. Product categories, industry categories, subsidiary summaries and other income must not be added as separate layers of group sales.

Reported business revenue / 2011 / consolidated main business

RMB 4,895,909,923.87

Reported business revenue / 2011 / consolidated other business

RMB 142,481,818.74

Reported business revenue / 2011 / consolidated total

RMB 5,038,391,742.61

Reported business cost / 2011 / consolidated main business

RMB 3,193,623,861.77

Reported business cost / 2011 / consolidated other business

RMB 36,495,883.11

Reported business cost / 2011 / consolidated total

RMB 3,230,119,744.88

Reported business revenue / 2011 / other product main business

RMB 314,546,605.57

Reported business cost / 2011 / other product main business

RMB 192,527,844.72

Reported business revenue / 2011 / manufacturing industry main business

RMB 4,811,631,650.27

Reported business revenue / 2011 / trading industry main business

RMB 84,278,273.6

Jushi Group was the glass-fiber manufacturing and selling subsidiary, wholly owned at year-end after the issuer acquired the remaining 49% through a share issue. The FY2011 subsidiary summary reports main-business revenue of CNY 4,811,631,700, main-business profit of CNY 577,630,700 and net profit of CNY 543,137,400. These amounts are converted from the original ten-thousand-yuan presentation; main-business profit is not silently relabeled consolidated operating profit. The summary reports assets of CNY 15,438,493,500 and net assets of CNY 3,708,542,600. It states registered capital of USD 256,208,105, using a ten-thousand-dollar unit, whereas the consolidation table presents registered capital of CNY 1,971,763,048. The currencies and table scopes are retained without an assumed exchange rate or adding them together. The exact industry-revenue note differs from the rounded subsidiary summary by CNY 49.73, consistent with displayed precision. Year-end ownership is not a claim that all annual minority profit had disappeared, nor is subsidiary net profit automatically the owner-profit measure used in the restructuring compensation test. The acquisition and that test require their own historical explanation.

Reported ownership percentage / 2011 / jushi group subsidiary

100%

Reported registered capital / 2011 / jushi group management summary

256,208,105 USD

Reported registered capital / 2011 / jushi group consolidation table

RMB 1,971,763,048

Reported subsidiary total assets / 2011 / jushi group subsidiary

RMB 15,438,493,500

Reported subsidiary net assets / 2011 / jushi group subsidiary

RMB 3,708,542,600

Reported subsidiary revenue / 2011 / jushi group main business

RMB 4,811,631,700

Reported subsidiary main business profit / 2011 / jushi group subsidiary

RMB 577,630,700

Reported subsidiary net profit / 2011 / jushi group subsidiary

RMB 543,137,400

Beixin Technology Development was 97.22% owned by the listed company and classified as a trading enterprise in the consolidation table. Its subsidiary summary reports main-business revenue of CNY 84,278,300, a main-business loss of CNY 18,277,700 and a net loss of CNY 18,323,200. Main-business and net results are different measures; the negative signs are retained rather than interpreting both as positive contributions. The figures use the original ten-thousand-yuan unit. The summary reports assets of CNY 216,500,000, net assets of CNY 60,247,400 and registered capital of CNY 90,000,000. The trading-industry revenue note gives the more precise CNY 84,278,273.60, CNY 26.40 below the rounded summary, consistent with its precision. That industry row cannot replace the subsidiary main-business loss with a simple group revenue-cost margin. Minority ownership remains distinct, and Beixin results are not added again to consolidated totals. Its permitted business scope includes research, technical consulting and industrial investments, but the scope alone does not establish realized sales from every permitted activity.

Reported ownership percentage / 2011 / beixin technology development subsidiary

97.22%

Reported registered capital / 2011 / beixin technology development subsidiary

RMB 90,000,000

Reported subsidiary total assets / 2011 / beixin technology development subsidiary

RMB 216,500,000

Reported subsidiary net assets / 2011 / beixin technology development subsidiary

RMB 60,247,400

Reported subsidiary revenue / 2011 / beixin technology development main business

RMB 84,278,300

Reported subsidiary main business profit / 2011 / beixin technology development subsidiary

RMB -18,277,700

Reported subsidiary net profit / 2011 / beixin technology development subsidiary

RMB -18,323,200

The consolidation note reports a net increase of five subsidiaries: three newly formed entities and two acquired entities, with none removed during FY2011. The newly formed companies were Jushi Group Licheng Hong Kong, Jushi Japan and Jushi International Sales Service. Xinfu Enterprise and Jushi America were acquired through share purchases. The acquired-company table describes Xinfu, registered in the British Virgin Islands, and Jushi America, registered in California, as trading businesses covering glass fiber and related products and imports and exports of associated machinery and raw materials. Their inclusion describes a change in the consolidated legal perimeter and supports the explanation of overseas channels; it is not evidence that an overseas manufacturing furnace commenced operation. The table separately discloses net assets and current-period profit for the new entities, so those measures must not be read as individual sales or added to consolidated revenue. An empty or dash profit entry for International Sales Service should not be changed to zero. These five additions are also distinct from the listed issuer’s acquisition of the remaining minority interest in Jushi Group, which was already a controlled subsidiary before that transaction. The annual group, product and subsidiary figures retain their respective reporting scopes.

Reported consolidation net additions / 2011 / consolidated annual fy2011

5 entities

Reported consolidation formed additions / 2011 / consolidated annual fy2011

3 entities

Reported consolidation acquired additions / 2011 / consolidated annual fy2011

2 entities

Domestic main-business revenue was CNY 2,515,949,133.80, up 10.66%, while foreign main-business revenue was CNY 2,379,960,790.07, down 0.43%. These rows sum to main-business revenue rather than the total including other-business income. Their respective costs were CNY 1,642,792,865.46 and CNY 1,550,830,996.31. Sales-market geography differs from where a subsidiary is registered or a factory operates. Management describes sales companies across 14 countries and regions, distributors in Germany and the United Kingdom, and relationships with customers in more than 80 countries and regions. These network claims explain routes to market without establishing factories or orders in each market. The historical trade discussion identifies anti-dumping pressure in the European Union, Turkey and India, and the proposed Egyptian manufacturing investment as a response. That rationale does not establish Egyptian FY2011 production or achieved exemption. The regional table does not identify sales by yarn grade, customer industry or realized tonnage.

Reported business revenue / 2011 / domestic main business

RMB 2,515,949,133.8

Reported business revenue / 2011 / foreign main business

RMB 2,379,960,790.07

Reported business cost / 2011 / domestic main business

RMB 1,642,792,865.46

Reported business cost / 2011 / foreign main business

RMB 1,550,830,996.31

Reported business revenue growth / 2011 / domestic main business

10.66%

Reported business revenue growth / 2011 / foreign main business

-0.43%

The five leading disclosed customers contributed CNY 809,253,905.71, or 16.07% of consolidated revenue. They were GIBSON ENTERPRISES INC., with CNY 361,697,728.97; Zhenshi Group Hengshi Fiber Foundation, CNY 208,068,019.86; CNBM Group Import and Export Company, CNY 101,634,521.81; HELM AG, CNY 70,811,267.26; and HANWHA L AND C CORPORATION, CNY 67,042,367.81. The related-party note places Hengshi under the second-largest shareholder and the CNBM importer under a common controller with a shareholder. Their annual sales already belong to this customer total and are not extra revenue to add a second time. The management summary separately reports CNY 1,084,769,200 of purchases from the top five suppliers, or 34.09% of CNY 3,181,948,900 of annual purchases. That purchase denominator is not annual revenue or production cost. The customer list supports disclosed commercial relationships without identifying every end use, confirming exclusive contracts or extending research into counterparties. Annual sales and purchases also differ from closing receivables, payables and other connected-party balances.

Reported top five customer sales / 2011 / consolidated annual

RMB 809,253,905.71

Reported top five customer share / 2011 / consolidated annual

16.07%

Reported named customer sales / 2011 / gibson enterprises annual

RMB 361,697,728.97

Reported named customer sales / 2011 / zhenshi hengshi annual

RMB 208,068,019.86

Reported named customer sales / 2011 / cnbm import export annual

RMB 101,634,521.81

Reported named customer sales / 2011 / helm ag annual

RMB 70,811,267.26

Reported named customer sales / 2011 / hanwha landc annual

RMB 67,042,367.81

Reported top five supplier purchases / 2011 / consolidated annual

RMB 1,084,769,200

Reported annual purchases / 2011 / consolidated annual

RMB 3,181,948,900

Reported top five supplier share / 2011 / consolidated annual

34.09%

The annual report describes overseas sales companies in 14 countries and regions, listing markets including Hong Kong, Canada, South Africa, South Korea, India, Italy, France, Spain, Singapore, Japan and the United States. The list is illustrative rather than a separate count to override the reported total. It also describes exclusive distributors in Germany and the United Kingdom and relationships with customers in more than 80 countries and regions. Fourteen measures geographic sales-company presence, while the wider customer count describes reach; neither is a disclosed number of individual customers, subsidiaries or manufacturing plants. The passage describes relationships as long-term and stable and refers to large international customers without identifying an order or annual revenue from each. This network explains the reported channels to overseas buyers, while the geographic revenue table provides a separate measure of realized sales. It cannot establish that the planned Egypt manufacturing investment was already operating or that every named market contributed a specified amount of revenue in FY2011. Research remains bounded to the issuer's disclosure.

Reported overseas sales geographies / 2011 / company described network fy2011

14 countries/regions

The Chengdu subsidiary modified its existing 40,000-tonne alkali-free and 60,000-tonne medium-alkali tank-furnace glass-fiber lines to use oxygen combustion. These line sizes identify the facilities being altered; adding them does not establish new capacity. The investment summary reports a CNY 20,522,200 project amount and completion in February 2011, repeated in the account of shareholder-resolution implementation. A similarly named oxygen-conversion row in the financial note carries the same budget, CNY 9,764,868.76 at the opening, CNY 9,308,923.71 of current additions and CNY 19,073,792.47 transferred to fixed assets. Opening plus additions equals that transfer. The note reports a 92.94% spending-to-budget ratio but 90% project progress. Technical completion and those accounting percentages are retained as source-specific descriptions, rather than silently making them identical. The report associates oxygen combustion with lower energy intensity at domestic bases, but does not quantify an incremental annual saving attributable solely to this Chengdu work.

Reported investment summary amount / 2011 / chengdu oxygen management

RMB 20,522,200

Reported project accounting opening / 2011 / chengdu oxygen financial

RMB 9,764,868.76

Reported project accounting additions / 2011 / chengdu oxygen financial

RMB 9,308,923.71

Reported project transfer to fixed assets / 2011 / chengdu oxygen financial

RMB 19,073,792.47

Reported project accounting progress / 2011 / chengdu oxygen financial

90%

Reported project accounting budget ratio / 2011 / chengdu oxygen financial

92.94%

The investment summary describes a chopped-strand technical modification of the Chengdu 40,000-tonne alkali-free tank-furnace line, with a CNY 136,010,000 project amount and completion in March 2011. The shareholder-resolution account also says the work completed. The financial major-project schedule instead lists a 40,000-tonne chopped-strand line with the same budget, CNY 11,973,752.36 at the opening, CNY 1,070,137.64 of additions and CNY 13,043,890.00 transferred to fixed assets. The amounts reconcile, but the note reports 9.59% spending against budget and 10% project progress. The combination of a completion statement and much lower financial-schedule progress cannot be resolved from these passages. Both descriptions remain explicit, and no corrected budget, date or scope is invented. The work changes an identified existing line toward chopped-strand production; it is not evidence of an additional furnace or additive 40,000-tonne installed capacity. The report does not give an independently measured annual sales or productivity benefit from this modification.

Reported investment summary amount / 2011 / chengdu chopped management

RMB 136,010,000

Reported project accounting opening / 2011 / chengdu chopped financial

RMB 11,973,752.36

Reported project accounting additions / 2011 / chengdu chopped financial

RMB 1,070,137.64

Reported project transfer to fixed assets / 2011 / chengdu chopped financial

RMB 13,043,890

Reported project accounting progress / 2011 / chengdu chopped financial

10%

Reported project accounting budget ratio / 2011 / chengdu chopped financial

9.59%

The Tongxiang investment summary reports CNY 40,347,500 for converting steam refrigeration to electric refrigeration, completed in July 2011. It separately reports CNY 33,458,100 for a chemical-workshop production-line expansion, completed in October 2011. These are process-support investments rather than disclosed new glass-fiber tonnage. A logistics-center project is listed at CNY 90,164,800 but had not started because the development zone lacked an available land quota. Land availability is therefore an actual disclosed constraint, not a forecast construction date. The financial schedule separately names a sixth-workshop expansion with the same CNY 33,458,100 budget: CNY 92,100 opening balance plus CNY 38,035,338.58 of additions equals CNY 38,127,438.58 transferred to fixed assets, with 100% progress and 114% spending against budget. Matching amounts offer a comparison reference but do not alone prove that this accounting label is identical to the named chemical expansion. The report does not allocate measured cost savings or incremental sales to each support project.

Reported investment summary amount / 2011 / tongxiang electric refrigeration management

RMB 40,347,500

Reported investment summary amount / 2011 / tongxiang chemical management

RMB 33,458,100

Reported investment summary amount / 2011 / tongxiang logistics management

RMB 90,164,800

Reported cip ledger budget / 2011 / unassigned sixth workshop

RMB 33,458,100

Reported cip ledger additions / 2011 / unassigned sixth workshop

RMB 38,035,338.58

Reported project transfer to fixed assets / 2011 / unassigned sixth workshop

RMB 38,127,438.58

The proposed Egyptian plant in the Suez economic and trade cooperation zone was an 80,000-tonne-per-year alkali-free tank-furnace glass-fiber line. Planned products were direct roving, assembled roving and chopped strands, together forming that capacity rather than 80,000 tonnes for each product. The company says approvals were obtained during 2011 and completion with production was expected in 2013. The investment table states USD 223,309,500, converted from its explicitly dollar-denominated ten-thousand-dollar figure despite a general renminbi table heading. It describes construction starting in January 2012, with production buildings being designed and residential buildings under construction when the filing was prepared. This is a post-year-end update, not FY 2011 operational output. The post-balance-sheet note likewise says the Egyptian subsidiary had been established and other work was being advanced. A resolution-implementation summary uses broader language about starting construction without giving an earlier precise date; it does not override the explicit January 2012 date. The source identifies the cooperation-zone location without a precise factory coordinate, production yield or realized customer delivery.

Project budget / 2011 / management investment summary fy2011

223,309,500 USD

Consolidated construction in progress closed at CNY 570,167,231.84, compared with CNY 49,728,071.24 at the opening. Management attributes the increase mainly to fixed assets transferred for reconstruction; the closing balance is not simply new cash investment or newly added capacity. The 308-line electric-boost melting retrofit carries CNY 530,367,353.39 of current additions and closing balance, with a CNY 13,519,300 stated budget,90% progress and a 90% spending-to-budget ratio. Those figures are not arithmetically interchangeable: the cited note does not bridge the large accounting balance to the much smaller retrofit budget or reported ratio. The 103-line oven modification similarly has a CNY 13,519,300 budget, CNY 97,618,099.60 of additions, CNY 90,099,447.45 transferred to fixed assets and CNY 7,518,652.15 remaining, with 90% reported progress. Its additions less the transfer reconcile to the closing balance, but this does not resolve the budget comparison. The five selected major works total CNY 537,886,005.54 at year-end, a narrower perimeter than all construction in progress. Short accounting labels do not establish a precise factory address or measured commercial benefit.

Reported cip ledger balance / 2011 / consolidated total fy2011

RMB 570,167,231.84

Reported cip ledger balance / 2011 / consolidated opening fy2011

RMB 49,728,071.24

Reported cip ledger budget / 2011 / 308 electric assist fy2011

RMB 13,519,300

Reported cip ledger balance / 2011 / 308 electric assist fy2011

RMB 530,367,353.39

Reported cip ledger additions / 2011 / 308 electric assist fy2011

RMB 530,367,353.39

Reported cip ledger budget / 2011 / 103 oven fy2011

RMB 13,519,300

Reported cip ledger additions / 2011 / 103 oven fy2011

RMB 97,618,099.6

Reported project transfer to fixed assets / 2011 / 103 oven fy2011

RMB 90,099,447.45

Reported cip ledger balance / 2011 / 103 oven fy2011

RMB 7,518,652.15

Reported cip ledger balance / 2011 / major projects subtotal fy2011

RMB 537,886,005.54

The construction ledger includes a second-phase waste-fiber recovery and processing project at CNY 4,494,754.53, an energy-metering management information system at CNY 340,564.79 and work using furnace waste gas to dry waste residue at CNY 254,145.43. These labels identify recorded resource-use and process-control work. They are not separately measured savings, certified emissions reductions or proof of commissioned production. Management also says internally developed waste-fiber reuse and oxygen-combustion technology had been applied across domestic bases; that broad statement does not establish that every separately listed phase was complete. Other small automation and equipment labels are retained in the evidence without creating a new standalone project identity for each item. The report does not supply full specifications, precise addresses or production benefits for these ledger rows, so they remain grouped with explicit disclosure limits.

Reported cip ledger balance / 2011 / waste fiber recovery phase two fy2011

RMB 4,494,754.53

Reported cip ledger balance / 2011 / energy metering system fy2011

RMB 340,564.79

Reported cip ledger balance / 2011 / furnace gas waste drying fy2011

RMB 254,145.43

The listed issuer acquired the remaining 49% of Jushi Group by issuing 154,361,000 A shares at a stated CNY 19.03 per share, rather than raising fresh cash for construction. The recipients were CNBM with 36,227,582 shares, Zhenshi Holding Group with 34,652,469, Pearl Success International with 58,279,153 and Surest Finance with 25,201,796. The four amounts sum to the new issue and increased total shares from 427,392,000 to 581,753,000. The recipients promised a 36-month transfer restriction; the table gives 4 August 2014 as the expected release date, not evidence of an already completed release. The source separately dates ownership registration 29 July 2011, the acquisition-table purchase 1 August 2011 and new-share registration 4 August 2011. These identify different steps. The transaction table reports CNY 2,937,489,800 as the acquisition price and CNY 103,056,400 of profit contributed from purchase to year-end, or 35.26% of listed-company owner profit. Multiplying issue shares by the stated price gives CNY 2,937,489,830, only CNY 30 above the rounded table amount. The parent investment note separately reports CNY 4,914,854,240 of additions to its Jushi investment. That accounting amount is not substituted for the transaction-table consideration or treated as cash paid; the cited passages do not provide a complete bridge between them.

Issued shares at reporting date / 2011 / jushi minority acquisition fy2011

154,361,000 shares

Reported share issue price / 2011 / jushi minority acquisition fy2011

19.03 CNY/share

Reported shareholder share base / 2011 / pre acquisition share base fy2011

427,392,000 shares

Reported shareholder share base / 2011 / year end total fy2011

581,753,000 shares

Reported share issue recipient shares / 2011 / cnbm acquisition recipient

36,227,582 shares

Reported share issue recipient shares / 2011 / zhenshi acquisition recipient

34,652,469 shares

Reported share issue recipient shares / 2011 / pearl success acquisition recipient

58,279,153 shares

Reported share issue recipient shares / 2011 / surest finance acquisition recipient

25,201,796 shares

Reported acquisition consideration / 2011 / jushi49pct management table

RMB 2,937,489,800

Reported acquisition profit contribution / 2011 / jushi49pct purchase to year end

RMB 103,056,400

Reported parent investment additions / 2011 / jushi investment parent account

RMB 4,914,854,240

The commitment table names CNBM and Zhenshi Holding Group as promising share compensation if Jushi Group failed its owner-net-profit forecasts during 2011–2013. The disclosed targets were CNY 539,280,000 for FY 2011 and CNY 770,860,000 for each of FY 2012 and FY 2013. Compensation would be calculated from the shortfall and their original Jushi interests, and delivered to the listed issuer in shares. These are contractual tests, not a cash loan repayment or a forecast for every listed-group operation. The issuer says Jushi achieved the FY 2011 forecast, but this passage does not give the precise actual owner-profit amount used in that test. The subsidiary summary net profit is another measure and is not silently substituted. The four recipients in the acquisition account should not automatically all be named as promissors from this two-party commitment table. A later agreement or assessment belongs to its own period. The generic statement that no new annual earnings forecast was prepared does not negate this specific acquisition commitment.

Reported compensation target / 2011 / jushi fy2011 owner profit

RMB 539,280,000

Closing guarantee balances were CNY 3,098,799,523.39 in source category A and CNY 1,446,995,280 in category B, totaling CNY 4,545,794,803.39. The reported 131.82% ratio reconciles against CNY 3,448,612,899.44 of equity attributable to parent owners, rather than including minority equity. The A heading excludes guarantees to subsidiaries, yet its rows identify Jushi guarantees for Jiujiang, Chengdu and Panding subsidiaries within the group. The source categories are retained without presenting all A obligations as support for unrelated outsiders. Annual guarantee occurrence of CNY 4,078,074,191 in A and CNY 2,696,349,330 in B is a period measure, not extra closing exposure to add to the total. Guarantees are contingent commitments, not cash paid or automatically additional consolidated debt. The table lists CNY 1,986,000,000 for beneficiaries above 70% debt-to-assets and CNY 835,488,353.67 in its excess-over-half-net-assets category; these labels do not establish separately additive obligations or a called guarantee. Guarantees received from Zhenshi in the financial note have the opposite direction and are excluded from these outward totals.

Closing subsidiary-guarantee balance / 2011 / source category a fy2011

RMB 3,098,799,523.39

Closing subsidiary-guarantee balance / 2011 / source category b fy2011

RMB 1,446,995,280

Closing subsidiary-guarantee balance / 2011 / total outward fy2011

RMB 4,545,794,803.39

Reported guarantee occurrence / 2011 / source category a annual fy2011

RMB 4,078,074,191

Reported guarantee occurrence / 2011 / source category b annual fy2011

RMB 2,696,349,330

Reported guarantee net assets ratio / 2011 / total outward as reported fy2011

131.82%

Reported guarantee ratio denominator / 2011 / consolidated owner equity fy2011

RMB 3,448,612,899.44

Reported guarantee classification amount / 2011 / beneficiaries above70pct fy2011

RMB 1,986,000,000

Reported guarantee classification amount / 2011 / source excess50pct category fy2011

RMB 835,488,353.67

On 28 December 2011 Beixin sold 21% of Shenzhen Pearl Junancem Cement Products to Shenzhen Jianning Real Estate Investment for a reported CNY 32,272,800. The management table records a CNY 24,424,000 disposal gain, equivalent to 8.36% of listed-company owner profit. The financial investment note retains a 29% equity-method interest in Junancem, with a CNY 7,559,029.06 closing carrying amount. This was a partial disposal of a legacy non-glass business, not the sale of all subsidiaries or recurring glass-fiber sales. The transaction table marks the ownership transfer complete but says the associated claims and debts had not all transferred; that statement is not confirmation that the full sale price had been collected. The prior-year 30% disposal mentioned in the comparative explanation is a different transaction. Group long-term-investment disposal income of CNY 24,608,595.47 is a broader accounting total and is not substituted for this rounded transaction-specific gain. The counterparty is recorded as disclosed without extending research into its other activities.

Reported disposed ownership percentage / 2011 / junancem disposal fy2011

21%

Disposal cash-and-equity consideration / 2011 / junancem management table

RMB 32,272,800

Reported disposal gain / 2011 / junancem management table

RMB 24,424,000

Reported retained associate interest / 2011 / junancem after disposal fy2011

29%

Reported associate carrying amount / 2011 / junancem year end fy2011

RMB 7,559,029.06

Reported investment disposal income / 2011 / group total fy2011

RMB 24,608,595.47

At year-end the shareholder table reports China National Building Material Co., Ltd, or CNBM Co., with 190,729,790 shares and 32.79% of the issuer. The report identifies that company as the controlling shareholder and the separate China National Building Material Group Co., Ltd as the actual controller; it says neither changed during FY2011. The historical ownership chart places the state-assets regulator above the group. Reported control therefore must not be reduced to a claim that the immediate shareholder held more than half of the listed shares. Zhenshi Holding Group held 120,283,509 shares, or 20.68%, of which 110,631,040 were reported pledged. This is a restriction involving a shareholder’s stake, distinct from the operating group’s asset collateral and outward guarantees. The table does not establish a default, enforcement or realized change of control. CNBM Co. is shown with no pledged or frozen shares in that table. The minority-interest acquisition issued additional shares to the four selling shareholders under the separately explained acquisition terms; those shares carried a stated transfer restriction, so issuance, ownership and transferability require separate treatment. These are historical disclosure facts, without extending research into the shareholders’ other businesses.

Reported shareholder shares / 2011 / cnbm year end fy2011

190,729,790 shares

Reported shareholder percentage / 2011 / cnbm year end fy2011

32.79%

Reported shareholder shares / 2011 / zhenshi year end fy2011

120,283,509 shares

Reported shareholder percentage / 2011 / zhenshi year end fy2011

20.68%

Reported shareholder pledged shares / 2011 / zhenshi year end fy2011

110,631,040 shares

The report identifies foreign-exchange exposure because exports form a substantial part of the business and renminbi movements directly affect export revenue. Management proposes process and raw-material changes, lower unit costs, some offset through imported materials and equipment, a larger domestic market, stronger international pricing and overseas production. These are disclosed responses, not a quantified hedge or evidence that exchange-rate losses were eliminated. The report says antidumping investigations concerning Chinese glass-fiber exports to the European Union, Turkey and India reached final decisions during FY2011 and characterizes the outcomes as relatively favorable. It supplies neither the duty schedules nor complete product scope in these passages, and this historical account cannot establish current trade treatment. Management nevertheless expects continuing protectionist risk and proposes customer communication and changes in market strategy. Natural gas, electricity, oxygen and labor costs are identified as production-cost pressures. Proposed responses include greater mechanization and automation, higher drawing output per unit, lower unit energy consumption, improved equipment running rates and finished-product yield. The resource-intensity figures elsewhere provide specific reported measures; this risk discussion itself does not quantify realized savings from each response.

At year-end the fixed-asset note lists buildings without completed property certificates with a combined net carrying amount of CNY 46,985,164.45. The components are CNY 9,247,825.06 at Zhejiang Beite, CNY 13,876,735.19 at Jushi Jiujiang and CNY 23,860,604.20 at Baoyu Industrial. The report says the underlying land associated with Baoyu’s buildings was not owned by Baoyu, preventing completion of the property certificates. It describes the Beite and Jiujiang certificates as being processed and expects completion for Beite in April of the following year; that expectation is not evidence of subsequent completion. The disclosure concerns title documentation and a specific land-ownership obstacle. It does not state that these facilities were shut down, seized or unusable, nor does it quantify a resulting interruption in production. The same note separately lists fixed assets restricted because they were used as collateral for bank borrowing. Those collateral balances explain financing restrictions and should not be merged with the uncertificated-building amount as if every item had the same problem or the two totals represented disjoint assets.

Reported untitled buildings net / 2011 / consolidated year end fy2011

RMB 46,985,164.45

Reported untitled buildings net / 2011 / beite year end fy2011

RMB 9,247,825.06

Reported untitled buildings net / 2011 / jiujiang year end fy2011

RMB 13,876,735.19

Reported untitled buildings net / 2011 / baoyu year end fy2011

RMB 23,860,604.2

The financial audit report gives an unmodified opinion on the issuer’s parent-company and consolidated financial statements prepared under Chinese Accounting Standards for Business Enterprises. Its scope includes year-end balance sheets, annual income, cash-flow and equity statements, and the notes. The auditors explain that considering internal control when assessing misstatement risk helps design financial-audit procedures; that financial audit is expressly not intended to provide an opinion on control effectiveness. Management separately reports that its year-end self-evaluation found no major deficiencies. The annual report also refers to an accountant’s separate special report on controls related to financial reporting and says its result was consistent with the self-evaluation. The cited reference is not a substitute for reading that separate report, and it should not be attributed to the financial audit opinion as an additional assurance conclusion. The planned control audit for the following year is prospective. These disclosures explain the financial-reporting assurance and the limits of the annual report’s control narrative. They do not establish absence of every operating risk, nor do they constitute an independent editorial review of this website’s English explanations.

For FY 2011 the issuer proposed a cash dividend of CNY 1.38 per ten shares, before tax, totaling CNY 80,281,914 on 581,753,000 shares. It separately proposed five new shares per ten by capitalizing reserves. That implies 290,876,500 additional shares, a reserve transfer rather than fresh cash equity proceeds. The parent capital reserve was CNY 4,814,035,869.29, distinct from the consolidated reserve of CNY 1,650,525,907.35. Subtracting the implied transfer gives CNY 4,523,159,369.29, while the proposal prints CNY 4,532,159,369.29: a CNY 9,000,000 arithmetic difference that remains disclosed without changing either original figure. The year-end parent equity statement has no completed reserve-to-capital transfer for this proposal. The post-balance-sheet note dates board approval 15 March 2012 and says shareholder approval was still needed. This is therefore a proposal concerning FY 2011 profit, not proof of FY 2011 cash payment or implemented bonus shares. Parent net profit of CNY 288,759,609.36 also differs from consolidated owner profit and is not itself available cash.

Reported cash dividend per ten shares / 2011 / fy2011 proposed before tax

1.38 CNY/10 shares

Reported shareholder cash dividend / 2011 / fy2011 proposed before tax

RMB 80,281,914

Reported reserve conversion per ten shares / 2011 / fy2011 proposed

5 shares/10 shares

Reported capital reserve / 2011 / parent year end fy2011

RMB 4,814,035,869.29

Reported capital reserve / 2011 / consolidated year end fy2011

RMB 1,650,525,907.35

Reported proposed capital reserve after conversion / 2011 / fy2011 proposal as printed

RMB 4,532,159,369.29

Parent-only net profit / 2011 / parent fy2011 distribution context

RMB 288,759,609.36

At 31 December 2011, consolidated monetary funds were CNY 1,457,555,554.74, while cash and cash equivalents in the cash-flow statement were CNY 1,110,653,687.30. The CNY 346,901,867.44 difference equals restricted other monetary funds in the asset-restriction note. The available-cash table consists of cash on hand, bank deposits available for payment and available other monetary funds; restricted margins and deposits therefore should not be counted again as freely available liquidity. This distinction matters for financing construction, working capital and debt repayment. It does not establish that the entire available balance could be transferred between subsidiaries or jurisdictions immediately. The restricted-asset table also contains noncash collateral, which is a separate measure from usable cash. The opening cash-and-equivalent balance of CNY 1,395,847,478.08 is a beginning-of-year stock, not cash generated during FY2011.

Reported monetary funds / 2011 / consolidated year end fy2011

RMB 1,457,555,554.74

Reported cash equivalents / 2011 / consolidated year end fy2011

RMB 1,110,653,687.3

Reported monetary funds restricted for bill deposits and term deposits / 2011 / consolidated other monetary funds fy2011

RMB 346,901,867.44

Reported available cash component / 2011 / cash on hand fy2011

RMB 513,456.02

Reported available cash component / 2011 / bank deposits fy2011

RMB 1,065,817,838.77

Reported available cash component / 2011 / other funds fy2011

RMB 44,322,392.51

Reported cash equivalents / 2011 / consolidated opening fy2011

RMB 1,395,847,478.08

Consolidated operations generated CNY 1,270,759,508.65 of cash in FY2011, compared with CNY 783,662,952.34 in FY2010. Net investing cash flow was negative CNY 1,590,177,792.79. Cash paid to acquire or construct fixed, intangible and other long-lived assets was CNY 1,534,311,710.26; this is an annual payment measure across the group, not an allocation to any single production line. Construction-accounting additions can include transfers of existing assets and cannot be substituted for this cash payment. Acquiring subsidiaries and other businesses used CNY 86,130,362.11 net cash, after CNY 94,578,432 of cash consideration less CNY 8,448,069.89 of cash acquired. That differs from the share-funded purchase of the remaining Jushi interest. Financing supplied net CNY 40,629,326.15 and exchange movements reduced cash by CNY 6,404,832.79. Together these flows explain the CNY 285,193,790.78 decline in cash and equivalents. The cash-reconciliation adjustments for inventories and payables describe cash effects; they are not automatically identical to opening-to-closing balance-sheet changes.

Reported operating cash flow / 2011 / consolidated annual

RMB 1,270,759,508.65

Reported comparative operating cash flow / 2010 / consolidated fy2010 comparative

RMB 783,662,952.34

Reported investing cash flow / 2011 / consolidated annual

RMB -1,590,177,792.79

Reported long lived asset cash payments / 2011 / consolidated annual

RMB 1,534,311,710.26

Reported acquisition net cash payments / 2011 / consolidated annual

RMB 86,130,362.11

Reported acquisition cash payments / 2011 / consolidated annual

RMB 94,578,432

Reported acquired business cash / 2011 / consolidated annual

RMB 8,448,069.89

Reported financing cash flow / 2011 / consolidated annual

RMB 40,629,326.15

Reported cash fx effect / 2011 / consolidated annual

RMB -6,404,832.79

Reported cash equivalent increase / 2011 / consolidated annual

RMB -285,193,790.78

The cash-flow statement records CNY 9,586,088,908.82 of borrowing receipts and CNY 9,467,754,407.45 of debt repayments during FY2011. These large annual flows describe funding and refinancing activity; they are not additional amounts to add to year-end debt. Closing short-term borrowings were CNY 5,838,513,680.72, current maturities of long-term loans CNY 1,289,515,247.37 and noncurrent long-term loans CNY 4,161,849,668.22. The broader current-noncurrent-liability line of CNY 1,289,795,039.37 also includes CNY 279,792 of deferred-grant amortization, which is not an interest-bearing loan. The cash-flow statement separately labels CNY 700,000,000 as cash received from issuing bonds. Yet the balance sheet shows no closing bonds-payable balance, and the short-financing-instrument note has only an opening balance; the explanatory note says those instruments were repaid and none remained at year-end. The cited notes do not bridge the cash-receipt line to an instrument or closing balance. Each original disclosure is retained without inventing a new year-end bond or assuming a current repayment guarantees future refinancing.

Reported consolidated borrowing cash receipts / 2011 / consolidated annual

RMB 9,586,088,908.82

Reported debt cash repayments / 2011 / consolidated annual

RMB 9,467,754,407.45

Reported bond cash receipts / 2011 / consolidated cash flow label fy2011

RMB 700,000,000

Reported short-term borrowings / 2011 / consolidated year end fy2011

RMB 5,838,513,680.72

Reported current long term borrowings / 2011 / consolidated year end fy2011

RMB 1,289,515,247.37

Reported noncurrent long term borrowings / 2011 / consolidated year end fy2011

RMB 4,161,849,668.22

Reported current noncurrent liabilities / 2011 / consolidated year end fy2011

RMB 1,289,795,039.37

Reported current deferred grant amortization / 2011 / consolidated year end fy2011

RMB 279,792

The consolidated receivable note reports CNY 191,125,994.30 of gross receivables transferred to banks with recourse, a CNY 189,214,734.35 net carrying amount and CNY 285,582,433.38 of associated short-term loans. Recourse means the transfer should not be presented as an unconditional exit from the underlying obligation. The detailed export-financing contract reports CNY 241,951,264.38 of gross transferred invoices, including CNY 136,243,977.35 due from subsidiaries within the consolidation. Removing that internal amount and adding the three other invoice-financing balances reproduces the consolidated gross total; the same treatment reconciles net receivables. The four disclosed loan amounts also sum to the consolidated associated-loan total. Their different invoice and loan amounts are retained rather than assuming a one-for-one advance rate. A CNY 63,135,018 cash margin in the export contract is collateral, not fresh financing and not an extra addition to the total restricted-cash balance. The loans are part of reported borrowings, so counting them again as separate debt would overstate financing exposure.

Reported recourse receivable gross / 2011 / consolidated year end fy2011

RMB 191,125,994.3

Reported recourse receivable net / 2011 / consolidated year end fy2011

RMB 189,214,734.35

Reported recourse financing borrowings / 2011 / consolidated year end fy2011

RMB 285,582,433.38

Reported recourse receivable gross / 2011 / export bank of china contract

RMB 241,951,264.38

Reported recourse receivable internal / 2011 / export bank of china contract

RMB 136,243,977.35

Reported recourse receivable net / 2011 / export bank of china contract

RMB 240,894,191.51

Reported recourse receivable gross / 2011 / export construction bank contract

RMB 56,714,931.69

Reported recourse receivable gross / 2011 / domestic jushi bank of china contract

RMB 11,741,444.9

Reported recourse receivable gross / 2011 / domestic panding bank of china contract

RMB 16,962,330.68

Reported recourse financing borrowings / 2011 / export bank of china contract

RMB 211,120,491.32

Reported recourse financing borrowings / 2011 / export construction bank contract

RMB 49,462,065

Reported recourse financing borrowings / 2011 / domestic jushi bank of china contract

RMB 9,999,953.79

Reported recourse financing borrowings / 2011 / domestic panding bank of china contract

RMB 14,999,923.27

Reported financing cash margin / 2011 / export bank of china contract

RMB 63,135,018

The group held CNY 498,309,961.54 of receivable bills at year-end. It separately disclosed CNY 159,200,402.89 pledged and CNY 468,524,533.56 already endorsed to others but not yet due. Holding, pledging and endorsing are different disclosed states; these numbers are not three additive pools of liquid assets. Pledged bills comprise CNY 123,853,223.87 securing loans, CNY 33,048,969.02 used for discounting and CNY 2,298,210 supporting bank-acceptance issuance. The asset-restriction table reports CNY 4,260,199,460.80 in total, including CNY 3,528,507,538.10 of fixed assets and CNY 36,374,918.02 of intangible assets used as collateral, together with restricted cash, net recourse receivables and pledged bills. The latter amounts are components already explained in the financing notes, not additional exposures to count again. These arrangements show how production assets and working capital support financing. They do not show that collateral has been seized, that a guarantee has been called or that the restricted-asset amount equals cash debt.

Reported receivable bills / 2011 / consolidated year end fy2011

RMB 498,309,961.54

Reported pledged bills / 2011 / consolidated year end fy2011

RMB 159,200,402.89

Reported endorsed unexpired bills / 2011 / consolidated year end fy2011

RMB 468,524,533.56

Reported pledged bill use / 2011 / loan security fy2011

RMB 123,853,223.87

Reported pledged bill use / 2011 / discount fy2011

RMB 33,048,969.02

Reported pledged bill use / 2011 / bank acceptance issuance fy2011

RMB 2,298,210

Reported restricted assets / 2011 / consolidated total fy2011

RMB 4,260,199,460.8

Reported restricted assets / 2011 / fixed assets fy2011

RMB 3,528,507,538.1

Reported restricted assets / 2011 / intangible assets fy2011

RMB 36,374,918.02

Closing long-term payables were CNY 237,474,832.34, which the issuer explains arose mainly from buying platinum-rhodium alloy. The table identifies Standard Chartered Bank with CNY 227,986,840.50, Fournier Group with CNY 9,386,875 and Cathay Bank with CNY 101,116.84; these sum to the reported balance. The original table also preserves foreign-currency initial amounts and contractual terms, rather than treating every original-currency amount as a CNY balance. This financing relates to valuable production materials and explains why capital needs extend beyond furnace construction alone. It is not automatically a finance lease, an extra disclosed plant or new production capacity. The same explanatory note attributes the large reduction in trade payables mainly to paying platinum-rhodium amounts. It does not provide a complete bridge between those payments, long-term payables and the annual cash-flow lines. Their separate scopes are kept without attributing all working-capital cash movements to one purchase.

Reported long term payables / 2011 / consolidated year end fy2011

RMB 237,474,832.34

Reported long term payable counterparty / 2011 / standard chartered fy2011

RMB 227,986,840.5

Reported long term payable counterparty / 2011 / fournier fy2011

RMB 9,386,875

Reported long term payable counterparty / 2011 / cathay fy2011

RMB 101,116.84

The listed parent had negative operating cash flow of CNY 36,166,333.89 and closing cash and equivalents of CNY 208,026,608.78, compared with positive operating cash generated by the consolidated group. Its investment-income note records CNY 347,085,693.03 overall, including CNY 348,000,000 under the cost method from Jushi declaring a dividend. Recognition of that subsidiary dividend is not itself evidence of cash received in the year: the parent cash-flow statement has no amount on the investment-income-cash-receipt line. Internal balances also require a separate perimeter. The parent reports CNY 620,000,000 due from Jushi, CNY 125,298,790.50 from Beixin and CNY 6,000,000 from its home-market subsidiary. These are parent claims on subsidiaries, not additional consolidated outside-customer receivables. They help explain how the holding company and operating subsidiaries relate, without assuming all group cash is available for a parent dividend or adding internal claims to group assets.

Reported operating cash flow / 2011 / parent annual

RMB -36,166,333.89

Reported cash equivalents / 2011 / parent year end fy2011

RMB 208,026,608.78

Reported parent-only investment income / 2011 / parent annual

RMB 347,085,693.03

Reported parent declared subsidiary dividend / 2011 / jushi parent cost method fy2011

RMB 348,000,000

Reported parent subsidiary receivable / 2011 / jushi year end fy2011

RMB 620,000,000

Reported parent subsidiary receivable / 2011 / beixin year end fy2011

RMB 125,298,790.5

Reported parent subsidiary receivable / 2011 / home market year end fy2011

RMB 6,000,000

Management links the purchase of Jushi Group’s minority interest with the subsidiary’s change from foreign-invested to domestic status. The management discussion refers to the acquisition in August, while the detailed tax notes describe the previous status through July; these passages should not be compressed into an invented common effective date for every tax consequence. Consolidated business taxes and surcharges were CNY 43,899,223.36, compared with CNY 17,004,033.47 in the preceding year. Management attributes the increase principally to urban maintenance and construction tax and education surcharges following the change in status. These are different from income-tax expense and should not be described as a blanket change in every subsidiary’s income-tax rate. The closing balance explanations also associate higher other payables with supplementary taxes following the status change and unpaid consideration for Xinfu, and lower other noncurrent liabilities with repayment of domestic-equipment tax rebates offsetting previously recognized deferred income. Separately, the report says Jushi Jiujiang became profitable and reversed deferred tax assets previously recognized on losses, increasing income-tax expense alongside higher profit. It does not quantify the subsidiary-specific use of tax losses. At Jiujiang, management also links higher taxes payable to the gradual offset of construction-period input VAT after normal production began. Each explanation has its own entity and accounting scope.

Reported business taxes surcharges / 2011 / consolidated annual fy2011

RMB 43,899,223.36

The closing financial-statement explanations say Beixin Technology Development fully collected its entrusted loan during FY2011. The comparative balance table shows an opening loans-and-advances amount of CNY 22,322,382.44 and a decrease of the same amount. This existing loan collection is compatible with the investment discussion’s statement that there were no entrusted-loan activities during the year; the latter should not be expanded into a claim that no opening loan existed. The closing table’s empty loan balance is interpreted alongside the explicit full-collection explanation, rather than routinely converting blank financial-table cells to zero. A different explanation attributes the decline in other receivables chiefly to Jushi Jiujiang receiving relocation-into-the-industrial-park compensation. The cash-flow notes disclose such receipts separately. Collection of an opening financial asset and receipt of relocation compensation have different business and cash classifications, so neither should be described as product sales, new customer demand or a recurring improvement in operating margin. These specific explanations supplement the financing and operating-support notes without extending research into borrowers or other counterparties.

Reported opening entrusted loans / 2011 / beixin opening fy2011

RMB 22,322,382.44

At 31 December 2011, consolidated trade receivables had a gross balance of CNY 1,274,374,438.29 and an allowance of CNY 60,440,042.73, leaving CNY 1,213,934,395.56 net. The five largest closing customer balances totaled CNY 204,167,676.27, or 16.02% of gross receivables. This is concentration in unpaid balances at year-end, rather than the annual-sales concentration reported elsewhere. Several named balances span more than one aging band, so the table does not support treating all major customers as current. Three individually assessed balances totaling CNY 14,452,294.88 were fully provided: management reported no current business dealings and expected them to be uncollectible. That allowance is distinct from the CNY 1,944,929.89 actually written off during FY2011. These measures help readers assess the capital committed to customer credit and the limits of treating reported sales as collected cash; an allowance is an accounting assessment, not evidence that every remaining balance will be collected.

Reported gross trade receivables / 2011 / consolidated year end fy2011

RMB 1,274,374,438.29

Reported trade receivable allowance / 2011 / consolidated year end fy2011

RMB 60,440,042.73

Reported net trade receivables / 2011 / consolidated year end fy2011

RMB 1,213,934,395.56

Reported top customer receivables / 2011 / top five year end fy2011

RMB 204,167,676.27

Reported individual receivable allowance / 2011 / three fully provided fy2011

RMB 14,452,294.88

Reported receivable writeoffs / 2011 / consolidated annual

RMB 1,944,929.89

Closing consolidated inventory was CNY 1,519,216,180.06 before an allowance of CNY 4,923,068.60, or CNY 1,514,293,111.46 net. Finished goods accounted for CNY 1,244,891,545.62 gross and CNY 1,242,428,166.28 net. The other categories include raw materials, goods in transit, work in progress, supplies and dispatched goods. Materials sent for outside processing had a gross balance of CNY 2,459,689.26 and an equal allowance; the original table leaves their net-value cell blank. This fully provided category must not be counted again as a positive net inventory balance. The allowance movement table shows the same total at the beginning and end, with no current-year addition, reversal or write-off shown. Net inventory increased from CNY 1,129,459,629.73 at the start of the year by CNY 384,833,481.73. The cash-reconciliation inventory adjustment was instead negative CNY 275,084,067.79. Balance-sheet stocks and cash-reconciliation movements have different accounting scopes; the cited notes do not provide a complete bridge. Inventory composition shows capital held in products and materials, but does not establish that all finished goods were obsolete or already sold.

Reported gross inventory / 2011 / consolidated year end fy2011

RMB 1,519,216,180.06

Reported inventory allowance / 2011 / consolidated year end fy2011

RMB 4,923,068.6

Reported net inventory / 2011 / consolidated year end fy2011

RMB 1,514,293,111.46

Reported net inventory / 2011 / consolidated opening fy2011

RMB 1,129,459,629.73

Reported gross inventory / 2011 / finished goods year end fy2011

RMB 1,244,891,545.62

Reported net inventory / 2011 / finished goods year end fy2011

RMB 1,242,428,166.28

Reported gross inventory / 2011 / outside processing year end fy2011

RMB 2,459,689.26

Reported inventory allowance / 2011 / outside processing year end fy2011

RMB 2,459,689.26

Reported cash inventory adjustment / 2011 / consolidated annual

RMB -275,084,067.79

Consolidated trade payables fell from CNY 1,764,116,893.37 at the beginning of FY2011 to CNY 518,052,740.79 at year-end. The issuer attributes the large decrease mainly to payments for platinum-rhodium alloy, linking supplier settlement to valuable glass-fiber production equipment. This explanation does not allocate every payment to a named contract or bridge the full balance change to operating cash flow. Customer advances closed at CNY 122,334,466.72, compared with CNY 124,029,353.36 at the beginning of the year. Of the closing balance, CNY 35,176,929.99 was more than one year old and described as unsettled. Advances are amounts received ahead of settlement, not additional revenue or a proven schedule of future deliveries. Together these disclosures show why working-capital assessment requires both customer balances and supplier obligations rather than looking only at receivables.

Reported trade payables / 2011 / consolidated year end fy2011

RMB 518,052,740.79

Reported trade payables / 2011 / consolidated opening fy2011

RMB 1,764,116,893.37

Customer advances in contract liabilities / 2011 / consolidated year end fy2011

RMB 122,334,466.72

Customer advances in contract liabilities / 2011 / consolidated opening fy2011

RMB 124,029,353.36

Reported aged customer advances / 2011 / over one year fy2011

RMB 35,176,929.99

Platinum-rhodium bushings are equipment used in the final filament-forming stage of glass-fiber production. The report explains that they require periodic cleaning and processing to meet product-quality requirements. The associated actual metal loss is charged to production cost and reduces the recorded alloy asset; the company does not charge ordinary depreciation on these bushings. This policy does not mean they have no consumption cost or an unlimited economic life. Their closing carrying amount was CNY 5,057,498,052.32 within total net fixed assets of CNY 10,056,938,324.03, illustrating the material asset commitment beyond buildings and conventional machinery. The policy also requires comparison of carrying value with recoverable value. The fixed-asset note reports CNY 527,156,385.70 of depreciation charged during FY2011, whereas the broader depreciation line in the cash-reconciliation table is CNY 773,655,926.06. The CNY 246,499,540.36 difference is retained as a difference between disclosed measures. The accounting policy alone does not provide a numerical bridge or prove that this entire difference represents bushing consumption.

Reported precious metal assets / 2011 / consolidated year end fy2011

RMB 5,057,498,052.32

Reported net fixed assets / 2011 / consolidated year end fy2011

RMB 10,056,938,324.03

Reported fixed asset depreciation / 2011 / consolidated annual

RMB 527,156,385.7

Reported cash reconciliation depreciation / 2011 / consolidated annual

RMB 773,655,926.06

Consolidated goodwill increased from CNY 11,782,175.81 to CNY 104,367,734.00 during FY2011. The additions were CNY 87,534,955.83 from acquiring the company identified as Xinfu Enterprises in the Chinese report and CNY 5,050,602.36 from that company acquiring Jushi America. These are purchase-accounting premiums above identified fair values, not equipment, annual revenue or evidence of extra manufacturing capacity. They also differ from the share-funded purchase of the remaining Jushi interest and from the net acquisition cash payment disclosed in the cash-flow notes. The issuer states that goodwill was allocated to the relevant asset groups and that its impairment testing found no impairment. This is the issuer's accounting assessment, not an independent confirmation of acquisition value or realized commercial synergies. The associated cash and unpaid consideration retain their separately disclosed scopes rather than being assumed equal to the goodwill additions.

Reported goodwill / 2011 / consolidated opening fy2011

RMB 11,782,175.81

Reported goodwill / 2011 / consolidated year end fy2011

RMB 104,367,734

Reported goodwill addition / 2011 / xinfu acquisition fy2011

RMB 87,534,955.83

Reported goodwill addition / 2011 / xinfu jushi america acquisition fy2011

RMB 5,050,602.36

The group recognized CNY 64,538,552.25 of government grants in FY2011, while the cash-flow note reports CNY 57,659,109.28 received and the nonrecurring-income column includes CNY 54,152,215.77 of the recognized grants. These are different measures and should not be substituted for one another. Named support includes CNY 15,000,000 for Jiujiang's 2010 growth award, CNY 9,000,000 for a 2011 industrial clean-production demonstration award, CNY 7,260,000 labeled as a 2010 natural-gas price subsidy and income-tax refund, CNY 5,500,000 of Jiujiang natural-gas support, and CNY 1,200,000 for an off-line chopped-strand retrofit. The programme labels refer to different activity years even though the amounts are recognized in FY2011. They connect policy support to energy cost and process investment, but an award does not establish completed construction, permanent support or a matching reduction in a particular project's budget. Where the list does not name the implementing site, the award remains a group disclosure rather than being assigned to a plant by inference.

Reported recognized government grants / 2011 / consolidated annual

RMB 64,538,552.25

Reported grant cash receipts / 2011 / consolidated annual

RMB 57,659,109.28

Reported nonrecurring grant component / 2011 / consolidated annual

RMB 54,152,215.77

Reported named operating grant / 2011 / jiujiang 2010 growth award recognized fy2011

RMB 15,000,000

Reported named operating grant / 2011 / clean production demonstration fy2011

RMB 9,000,000

Reported named operating grant / 2011 / 2010 gas tax programme recognized fy2011

RMB 7,260,000

Reported named operating grant / 2011 / jiujiang gas fy2011

RMB 5,500,000

Reported named operating grant / 2011 / offline chopped strand retrofit fy2011

RMB 1,200,000

FY2011 consolidated financial expense was CNY 642,983,269.24. It comprises CNY 647,148,022.89 of interest expense, less CNY 19,120,802.36 of interest income, a negative CNY 9,532,818.15 exchange-loss line (an exchange gain), and CNY 24,488,866.86 of other expense. This expense measure is separate from cash debt service and from the exchange effect on cash balances. Income-tax expense of CNY 95,693,469.90 comprises CNY 73,864,289.55 of current tax and CNY 21,829,180.35 of deferred-tax adjustment. The reconciliation records different subsidiary tax rates, changes to opening deferred-tax balances and use of prior losses; it cannot be read as a single group cash-tax rate. Recognized deferred-tax assets fell from CNY 47,388,148.48 to CNY 25,553,891.34, including a fall in the asset for deductible operating losses from CNY 27,240,469.85 to CNY 7,700,596.54. The issuer attributes the decline mainly to Jiujiang reversing previously recognized deferred-tax assets for deductible losses. The cited notes do not establish that Jiujiang used those losses in FY2011; the group-level tax reconciliation is not a company-specific explanation. These distinctions matter when assessing earnings quality and financing pressure without treating noncash tax adjustments as current operating receipts or payments.

The consolidated revenue increase is attributed by management to higher selling prices. Its explanation of the reduction in cost of sales says sales volume was slightly below the preceding year. Price improvement should therefore not be presented as evidence of higher physical sales, and the report does not quantify a complete price-volume-product-mix bridge. Management separately attributes the higher closing inventory to weaker demand associated with domestic macroeconomic controls and the European debt crisis. These statements explain annual flow and year-end stock on different bases. The management discussion also says there was no major change in equipment utilization, order acquisition, product sales or backlog during the period; that broad qualitative statement does not erase the specifically reported inventory movement. The increase in operating cash flow is principally attributed to changing procurement-payment methods and reducing cash payments. It cannot be explained solely as improved customer collection. Selling-expense growth is associated with transport and packaging costs and pressure from fuel and labor prices, while higher financing expense is attributed to increased borrowing and higher benchmark interest rates. These are the issuer’s explanations of operating and funding pressures, without a quantified allocation of the separate effects.

The consolidated income statement reports net profit of CNY 455,208,659.74, split into CNY 292,294,112.74 attributable to owners of the listed company and CNY 162,914,547.00 attributable to minority shareholders. Parent-company-only net profit of CNY 288,759,609.36 is a separate legal-entity result rather than the same measure as consolidated owner profit. The annual summary reports owner profit excluding nonrecurring items of CNY 233,023,005.38. The difference is CNY 59,271,107.36, the reported net nonrecurring contribution after income-tax and minority-interest effects. Its components include CNY 22,127,258.72 of net noncurrent-asset disposal gains, CNY 54,152,215.77 of grants classified in this schedule, other nonoperating items of negative CNY 713,999.12, an income-tax deduction of CNY 3,973,114.45 and a minority-interest deduction of CNY 12,321,253.56. The grant amount is this classification’s component, not all grant income or cash received; aggregate disposal gains likewise should not be substituted for one transaction’s gain. The lending-income amount shown in the comparative column belongs to the previous year. The reconciliation helps separate operating results, ownership attribution and disclosed exceptional items, but it does not forecast sustainable future profit.

Reported net profit / 2011 / consolidated annual fy2011

RMB 455,208,659.74

Reported owner net profit / 2011 / listed owner annual fy2011

RMB 292,294,112.74

Reported minority net profit / 2011 / minority annual fy2011

RMB 162,914,547

Reported owner profit excluding nonrecurring / 2011 / listed owner annual fy2011

RMB 233,023,005.38

Reported nonrecurring net profit / 2011 / listed owner annual fy2011

RMB 59,271,107.36

Reported non-current asset-disposal gains in nonrecurring supplement / 2011 / consolidated annual fy2011

RMB 22,127,258.72

Reported nonrecurring other items / 2011 / consolidated annual fy2011

RMB -713,999.12

Reported tax deduction in nonrecurring supplement / 2011 / consolidated annual fy2011

RMB -3,973,114.45

Reported after-tax minority deduction in nonrecurring supplement / 2011 / consolidated annual fy2011

RMB -12,321,253.56

The report identifies Tongxiang Jinshi Precious Metal Equipment and Tongxiang Leishi Micropowder as parties sharing key management personnel. It reports CNY 102,048,477.01 of platinum-rhodium purchases and bushing-processing charges from Jinshi, representing 20.94% of the disclosed transaction category, and CNY 228,048,085.15 of pyrophyllite purchases from Leishi, representing 65.54% of that category. Their disclosed FY2011 related-party status must not be replaced with ownership acquired in a later year. Zhejiang Yushi International Logistics, disclosed as controlled by the second-largest shareholder, supplied CNY 87,166,160.62 of sales freight at 79.69% of its category and CNY 37,613,558.16 of materials and engineering-equipment freight at 31.28% of that different category. The percentages therefore cannot be added or interpreted as shares of all group expenditure. These roles show the operating dependence represented by connected procurement and distribution. The issuer states that pricing used market prices and describes director and shareholder approval; these statements are attributed to the issuer rather than presented as an independent fairness finding. The full related-transaction table mixes sales, purchases, rentals, asset disposals and financing fees, so its total is not group revenue or a single production-input cost.

Reported related input purchase / 2011 / jinshi alloy and bushing processing fy2011

RMB 102,048,477.01

Reported related input purchase / 2011 / leishi pyrophyllite fy2011

RMB 228,048,085.15

Reported related logistics cost / 2011 / zhejiang yushi sales freight fy2011

RMB 87,166,160.62

Reported related logistics cost / 2011 / zhejiang yushi material and engineering freight fy2011

RMB 37,613,558.16

The related-party settlement table reports CNY 23,656,306.88 of gross trade receivables and CNY 623,749.99 of allowances, plus CNY 19,207,327.28 of other receivables and CNY 1,257,700.46 of allowances. The trade category concerns goods sold, whereas the other-receivable category includes CNY 13,282,103.45 of equipment amounts due from CNBM's import-export company. Their purposes and allowance bases remain separate. These balances are subsets of the respective consolidated receivable categories, not additional assets to add on top of the group balance sheet. The separate other-receivable table also names CNY 26,496,800 due from Jianning Real Estate, the purchaser in the Junan cement-equity transaction. The cited disclosures do not prove that this entire receivable equals unpaid consideration on that sale; no cash collected is calculated by subtracting it from the equity sale price. This preserves the distinction between a named relationship and a verified transaction-level cash bridge.

Reported related trade receivables / 2011 / consolidated year end fy2011

RMB 23,656,306.88

Reported related trade allowance / 2011 / consolidated year end fy2011

RMB 623,749.99

Reported related other receivables / 2011 / consolidated year end fy2011

RMB 19,207,327.28

Reported related other allowance / 2011 / consolidated year end fy2011

RMB 1,257,700.46

Reported related equipment receivable / 2011 / cnbm import export year end fy2011

RMB 13,282,103.45

Reported named other receivable / 2011 / jianning year end fy2011

RMB 26,496,800

The related-party settlement schedule reports closing trade payables of CNY 6,136,567.56, customer advances of CNY 3,543,872.18 and other payables of CNY 527,116.31. These are related-party subsets, not the consolidated totals for the same liability categories. The trade-payable entries include purchases and freight, with a separate valuation-fee entry, while the advance receipts chiefly concern trading-channel settlement. Other payables include a balance with Zhejiang Yushi International Logistics and a small balance with Surest Finance. This presentation should not turn all related liabilities into loans or assume that a freight balance has the same role as an equipment purchase. The separately disclosed long-term payable to Fournier remains part of the financing explanation and should not be added again simply because it also appears in the related-party note. Received shareholder guarantees are another distinct form of support, rather than company cash or a fresh liability on top of the borrowing already recognized. The schedule helps connect operating relationships with year-end settlement exposure. It does not by itself establish settlement timing, independent pricing fairness or a future default, and research stops at the issuer’s disclosed relationship.

Reported related-party trade payables / 2011 / consolidated year end fy2011

RMB 6,136,567.56

Related customer advances and contract liabilities / 2011 / consolidated year end fy2011

RMB 3,543,872.18

Related-party other payables / 2011 / consolidated year end fy2011

RMB 527,116.31

Management describes research infrastructure including a postdoctoral research station, an accredited testing center, a provincial glass-fiber research laboratory and the Jushi glass-fiber research institute. The innovation discussion describes additional institutional construction and speaks prospectively about the laboratory's position when completed. It does not establish an independently assessed global ranking or a precise completion date for every facility. In the financial notes, FY2011 technical-development expense within administrative expenses was CNY 157,596,685.59. The cash-flow note separately reports CNY 66,584,331.21 paid for research and development. Expense recognition and a disclosed cash-payment line are different measures and must not be added as two separate research programmes or substituted for one another. They indicate resources committed to development alongside the product descriptions, but do not provide project-by-project allocations, a fully reconciled expense-to-cash bridge or proof that all spending produced commercial products. The passage does not support converting every technical employee into an R&D headcount.

Reported technical development expense / 2011 / consolidated administrative expense fy2011

RMB 157,596,685.59

Reported research cash payments / 2011 / consolidated annual fy2011

RMB 66,584,331.21

The FY2011 innovation discussion reports 47 patent applications, comprising 22 invention applications and 25 utility-model applications. It separately reports 68 authorizations during the year, comprising eight invention patents and 60 utility-model patents. Grants in a year can relate to applications from a different cohort; the difference between applications and authorizations is not itself an inconsistency or a conversion rate. The report also states an accumulated 164 authorized patents, comprising 21 invention and 143 utility-model patents, using an 'at present' time description rather than expressly assigning that stock to 31 December 2011. The cumulative figure is retained with that time boundary and is not recorded as a precise year-end stock. These measures describe intellectual-property activity associated with the manufacturing and product-development platform. They do not count distinct commercial products or show revenue, customer adoption or independently proven superiority. Awards and project-application counts are not substituted for patent rights or operating results.

Reported patent applications / 2011 / innovation fy2011

47 applications

Reported invention patent applications / 2011 / innovation fy2011

22 applications

Reported utility patent applications / 2011 / innovation fy2011

25 applications

Reported patent authorizations / 2011 / innovation fy2011

68 patents

Reported invention patent authorizations / 2011 / innovation fy2011

8 patents

Reported utility patent authorizations / 2011 / innovation fy2011

60 patents

Management says its domestic bases applied waste-glass-fiber recycling and pure-oxygen combustion technology and links these processes with lower unit energy consumption and emissions. It describes a water-reuse system with a biological-membrane treatment system handling 4,800 tonnes of wastewater per day. This is wastewater handling, not glass-fiber production capacity or a separately identified furnace. For FY2011 it reports reductions from the prior year of 10.10% in energy per unit of enterprise value added, 6.10% in energy per unit of current-price output value and 5.50% in energy per unit of glass-fiber yarn. The first two economic denominators differ from the physical yarn-output denominator. It also reports 18.26% lower wastewater discharge per unit of yarn and 36.27% lower chemical oxygen demand, or COD, per unit of yarn. These intensity measures connect resource use and discharge with production, but do not establish falling absolute group energy use or total pollution. The company's stated goal for total emissions is retained as a goal rather than a proven result, and the passages do not allocate the reductions among specific lines or quantify annual savings attributable to each technology.

Reported wastewater treatment capacity / 2011 / company described water treatment fy2011

4,800 tonnes/day

Reported energy intensity reduction / 2011 / enterprise value added fy2011

10.1%

Reported energy intensity reduction / 2011 / current price output value fy2011

6.1%

Reported energy intensity reduction / 2011 / glass fiber yarn unit fy2011

5.5%

Reported wastewater intensity reduction / 2011 / glass fiber yarn unit fy2011

18.26%

Reported cod intensity reduction / 2011 / glass fiber yarn unit fy2011

36.27%

The workforce table reports 9,315 active employees: 6,201 production staff, 131 sales staff, 1,450 technical staff, 73 finance staff, 914 administrative staff and 546 other management staff. The categories reconcile to the total and show the production and technical resources behind the business; technical staff are not all expressly classified as researchers. The count is a disclosed employee stock, not annual hires, average staffing or a measure of work hours. The employee-liability note opens at CNY 90,310,617.76, adds CNY 436,187,712.39, records reductions of CNY 478,956,470.28 and closes at CNY 47,541,859.87. The note covers employee obligations including benefits, insurance and other items, so these amounts should not be described as wages alone. The cash-flow statement separately records CNY 488,336,720.12 paid to or for employees. Cash paid and the liability-table reduction are different disclosed measures; the cited notes do not provide a complete bridge. The note explains that the remaining welfare-fund balance includes historically accumulated amounts at Jushi before its foreign-invested status changed. General training and welfare activities are omitted unless they explain a specific evidenced operating constraint.

Reported employee headcount / 2011 / group table fy2011

9,315 people

Reported employee role count / 2011 / production fy2011

6,201 people

Reported employee role count / 2011 / sales fy2011

131 people

Reported employee role count / 2011 / technical fy2011

1,450 people

Reported employee role count / 2011 / finance fy2011

73 people

Reported employee role count / 2011 / administration fy2011

914 people

Reported employee role count / 2011 / other management fy2011

546 people

Reported employee liabilities / 2011 / consolidated opening fy2011

RMB 90,310,617.76

Reported employee liability additions / 2011 / consolidated annual fy2011

RMB 436,187,712.39

Reported employee liability reductions / 2011 / consolidated annual fy2011

RMB 478,956,470.28

Reported employee liabilities / 2011 / consolidated year end fy2011

RMB 47,541,859.87

Reported employee cash payments / 2011 / consolidated annual fy2011

RMB 488,336,720.12