China Jushi FY2011: Subsidiaries and invested companies

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