China Jushi FY2011: Markets, customers and suppliers

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

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