China Jushi | FY2012 business review

Revenue reached RMB 5.1030824 billion in 2012. Management attributed revenue growth to higher volumes and described softer demand and selling prices, trade pressures, and higher energy and labour costs. Operating profit declined despite the modest rise in revenue. Its response centred on technology, lower costs and management integration. These disclosures explain why revenue, tonnage and profitability can move differently, without turning the operating account into a stock-market recommendation.

The annual report names the listed issuer as CHINA FIBERGLASS CO., LTD, abbreviated CFG, with Shanghai A-share code 600176. This is the historical issuer name for the China Jushi research record, not another company inserted into the operating database. The listed parent is distinct from Jushi Group, its glass-fiber manufacturing subsidiary, and Beixin Technology Development, its building-material trading subsidiary. The report lists the registered and office address at Wanghai Building C, No. 10 West Third Ring Middle Road, Haidian District, Beijing. This historical administrative address is not substituted for a manufacturing-site address or a current headquarters location. The permitted business scope had changed over earlier years and, in 2011, included new-material technical services, selling glass fiber and building materials, and enterprise/asset management. Permitted activities provide legal-scope background rather than proof that each activity produced revenue in FY2012.

The company describes a composite-fiber product developed through changes to sizing formulations, the chemical-fiber component and the composite manufacturing process. Product appraisal and acceptance were completed, and the product entered stable batch production during the period described. This is a more advanced commercialization stage than an R&D breakthrough alone. The report identifies compression molding, laminated-panel molding and winding as suitable processes, and aerospace, automobiles, construction, sporting equipment and new energy as application areas. Those uses describe the intended market scope, not disclosed orders from those industries. Management claims simpler molding, higher production efficiency, mechanical advantages and repairability and recyclability compared with traditional fiber products; the passage supplies no comparative test data. It also reports recognition by representative overseas customers without naming them or giving sales volumes. Its claim to be the second manufacturer after Twintex with independent intellectual property and large-scale production is an issuer claim, rather than an independently verified global ranking.

The flame-retardant glass-fiber product is designed for reinforced PA, or polyamide, materials. The company reports an FY2012 R&D breakthrough after refining its understanding of flame-retardant mechanisms, sizing raw materials and production processes. The stated purpose is to maintain flame-retardant performance while reducing the amount of flame-retardant additives used in the composite, which management links to lower composite-material cost and environmental requirements. These are company-reported technical and economic claims. The passage does not quantify the additive reduction, identify a test standard or customer, or disclose product sales. Unlike the separate composite-fiber disclosure, this paragraph does not expressly establish stable batch production. Readers should therefore distinguish the reported research advance and intended value to customers from demonstrated commercial volumes.

The newly developed pultrusion yarn is described as a direct-roving product aimed at the high end of the pultrusion market. Its disclosed customer purpose is to meet demand for higher-performance pultruded products; the report does not specify final components or named customers. Management claims shear strength more than 30% above the company's conventional pultrusion yarn. This is a relative comparison against its own product, not a claim of superiority over every competing material. The cited passage gives no test method, conditions or absolute strength value. Management also describes quality and production-cost advantages and expects the product to become a leading company product. Those descriptions and expectations do not establish market leadership, completed customer qualification, a sales contract or quantified revenue.

Reported relative shear strength threshold / 2012 / own conventional pultrusion yarn comparison threshold

30%

The company introduced yarn for high-pressure petroleum pipes in FY2012. The annual report says the product passed comprehensive qualification by pipe manufacturer Ameron, citing process performance and a 1,200-hour long-duration test. This provides a named customer qualification milestone, which is distinct from the unnamed overseas recognition reported for composite fiber and from a product still described through R&D progress. The passage does not identify the test standard, operating pressure, temperature, or measured outcome. The duration is a reported test period, not a demonstrated pipe service life. Nor does the qualification establish approval by every regulator, the size of an order, a long-term supply contract or recognized sales. The business significance is the reported qualification for a high-end pipe application; research does not extend to investigating Ameron beyond this disclosure.

Reported customer test duration / 2012 / ameron petroleum pipe yarn qualification

1,200 hours

The research table reports FY2012 expenditure of CNY 158,818,300, converted from 15,881.83 in the original ten-thousand-yuan unit. It is entirely expensed, with zero capitalized R&D, and the table reports ratios of 4.17% to net assets and 3.11% to operating revenue. The accompanying paragraph instead states CNY 158,000,000, using 1.58 hundred-million yuan, and a 0.78% year-on-year increase. Both presentations are retained without substituting one for the other. Research focused on glass-fiber products, and 13 research projects were completed. Page12 reports 83 patent applications; the innovation discussion on page15 reports 80, comprising 19 invention applications and 61 utility-model applications. The three-application difference has no demonstrated reconciliation. Both sections report 40 authorizations; page15 divides these into 11 invention and 29 utility-model authorizations. Cumulative authorized patents at year-end were 197, comprising 25 invention and 172 utility-model patents. Spending, project completion, applications, annual authorizations and cumulative patents are different measures and do not establish product sales or independent technical superiority.

Reported research expenditure / 2012 / table expensed fy2012

RMB 158,818,300

Reported capitalized research expenditure / 2012 / table fy2012

RMB 0

Reported research to net assets / 2012 / table fy2012

4.17%

Reported research to revenue / 2012 / table fy2012

3.11%

Reported research expenditure / 2012 / narrative fy2012

RMB 158,000,000

Reported research expenditure growth / 2012 / narrative fy2012

0.78%

Reported completed research projects / 2012 / fy2012

13 projects

Reported patent applications / 2012 / research paragraph fy2012

83 applications

Reported patent applications / 2012 / innovation paragraph fy2012

80 applications

Reported invention patent applications / 2012 / innovation paragraph fy2012

19 applications

Reported utility patent applications / 2012 / innovation paragraph fy2012

61 applications

Reported patent authorizations / 2012 / innovation paragraph fy2012

40 patents

Reported invention patent authorizations / 2012 / innovation paragraph fy2012

11 patents

Reported utility patent authorizations / 2012 / innovation paragraph fy2012

29 patents

Reported cumulative authorized patents / 2012 / year end

197 patents

Reported cumulative invention patents / 2012 / year end

25 patents

Reported cumulative utility patents / 2012 / year end

172 patents

Management describes raising furnace melting rates and drawing yield to increase output from an individual furnace position and reduce consumption per unit of output. Increasing automation is linked to lower labor requirements. These explain the company's reported cost-control mechanisms, but the passage does not quantify FY2012 savings attributable to each method. It describes proprietary alkali-free and medium-alkali tank-furnace drawing technologies and waste-glass-fiber reprocessing technology. The company also says it designed and built an alkali-free single-furnace line with annual capacity of 120,000 tonnes. This describes disclosed technological and equipment capability; it is not an additional FY2012 commissioning event or an amount to add again to reported group capacity. The passage does not identify the line's location. It names the E6 high-performance glass-fiber formulation and Vipro product series and reports favorable customer recognition, without specifications or comparative tests. Claims of global scale and industry leadership remain company claims.

Reported single furnace annual capacity / 2012 / company described alkali free line

120,000 tonnes/year

The report describes existing management-system credentials for quality, environmental management, occupational health and safety, and measurement management. It separately says major products had credentials from named classification bodies and the US FDA, without specifying every product grade or certificate condition in this paragraph. New FY2012 product-certification applications included four under GL, three under LR and one French ACS application. An application is not a confirmed certificate. The paragraph also reports 24 ROHS tests, 27 REACH tests and three EU 10/2011 tests; these are the source's test counts, not automatically certifications or blanket authorization of all company products. They provide company-reported context for qualification and access to customer applications. The more specific Ameron yarn qualification is retained separately. No test condition, regulatory conclusion, future validity or sales amount is inferred, and the study does not expand into checking every certification body or customer.

The cash-flow discussion attributes increased investment payments partly to acquiring Tongxiang Leishi Micropowder, Tongxiang Jinshi Precious Metal Equipment and Hubei Hongjia Kaolin Mining. These companies relate to materials and equipment in the manufacturing chain. The disclosure is kept at its stated acquisition scope; it does not prove that all raw materials were internally supplied or that the acquired businesses generated a specified saving for every furnace.

The report explains that platinum-rhodium bushings are used in the final fiber-forming stage of glass-fiber production. Regular cleaning and reworking preserve production quality and consume some precious metal. Under the company's reported FY2012 policy, actual metal losses are charged to production cost and reduce the asset, rather than being recognized through ordinary depreciation. The balance is assessed against recoverable value. Year-end platinum-rhodium assets were CNY 5,263,035,119.37 in both the original-cost and net-value tables; that equality does not mean that use of the material has no cost. Group net fixed assets totaled CNY 9,903,427,928.95, including machinery with net value of CNY 3,132,514,091.00 and buildings of CNY 1,436,987,219.22. These are carrying amounts, not metal tonnage, cash reserves or a valuation at current metal prices. The note records CNY 459,367,198.71 of fixed-asset depreciation for the year. Separately, the second-stage Zhejiang Beite refractory-material plant was completed in June2012 but its ownership certificate was still being processed, with completion expected in mid2013. Its net carrying amount was CNY 33,486,732.79. That is a disclosed historical title-processing issue, not evidence of a production shutdown or completed later certification.

Reported precious metal production assets / 2012 / year end net

RMB 5,263,035,119.37

Reported net fixed assets / 2012 / consolidated year end

RMB 9,903,427,928.95

Reported machinery net / 2012 / consolidated year end

RMB 3,132,514,091

Reported buildings net / 2012 / consolidated year end

RMB 1,436,987,219.22

Reported fixed asset depreciation / 2012 / fixed asset note fy2012

RMB 459,367,198.71

Reported assets pending title net / 2012 / zhejiang beite phase two year end

RMB 33,486,732.79

Jushi Group's glass-fiber waste comprehensive-utilization project was identified for resource-utilization support under a Zhejiang government construction-funding notice. The company received CNY 7,000,000 during FY2012 as construction subsidy, and the project was not completed at31December2012. The closing amount appears in other noncurrent liabilities as deferred income, rather than automatically being recognized as this year's product revenue or profit. The reported accounting policy allocates asset-related grants over the related asset's useful life. This is a specific resource-use investment and funding disclosure, distinct from a general environmental slogan. The passage does not give annual processing capacity, a site address, operating output, emissions reductions or completed commissioning. It also does not establish that the project is identical to every mention of proprietary waste-fiber reprocessing technology; no unsupported project merger or environmental-performance claim is made.

Reported waste utilization construction grant / 2012 / jushi unfinished project year end deferred income

RMB 7,000,000

At the end of FY2012, the company reported three large glass-fiber manufacturing bases and 13 tank-furnace drawing lines. These counts describe its reported existing production footprint, distinct from the Egyptian plant under construction, the proposed US line and the proposed electronic-fabric investment described in the project topic. Its separately disclosed self-designed 120,000-tonne-per-year single-furnace line is a technological capability within the reported manufacturing system, rather than another amount of newly commissioned FY2012 capacity to add again. Management links large bases to scale, production quality and manufacturing efficiency, but the passage does not quantify the cost benefit or provide output for each line. Domestic or global leadership statements remain company claims. A count of lines also does not show that every line operated continuously at design capacity throughout the year, especially where the report separately identifies cold repair and planned conversion.

Reported existing manufacturing bases / 2012 / year end

3 bases

Reported existing tank furnace lines / 2012 / year end

13 lines

The company identifies electricity, natural gas, minerals and chemical auxiliaries as substantial production inputs. Its tank-furnace process requires continuous operation, making fuel availability relevant to production continuity rather than merely an expense category. To address cold-weather or gas-source shortages, management reports gas-supply stations and storage tanks, vehicle-carried backup supply and emergency purchased gas that could reach a production base within 2–12 hours. That is an expected delivery interval, not the duration of stored backup gas or the length of a reported production shutdown. The passages do not quantify gas inventories, the number of stations or tanks, or actual hours of disruption in FY2012. Management also describes annual/open tendering, competitive negotiations and longer agreements for input procurement. Those methods do not establish that all energy-price risk was removed or quantify achieved savings.

The company reports a water-reuse system incorporating biofilm treatment that processes 4,800 tonnes of wastewater per day. This is a disclosed wastewater-processing measure, not glass-fiber production capacity. Management says waste-fiber reuse and oxy-fuel combustion technologies were applied across its domestic production bases and links them to lower unit energy use and emissions. The passage supplies no measured year-on-year energy saving or pollutant reduction by plant. Its comparison with industry-average energy use remains an issuer claim. The environmental section says a second clean-production expert review was passed in December 2012, no major environmental issue occurred during the year and all production bases met discharge standards. These are bounded company disclosures, not independent measurements by SinoFilings or proof of compliance at every later date. The separately funded, unfinished waste-utilization project has its own construction and deferred-subsidy scope and is not automatically merged with every operating recycling process.

Reported daily wastewater processing / 2012 / issuer water reuse system

4,800 tonnes/day

The parent and major subsidiaries reported 9,423 employees at year-end, comprising 25 at the parent and 9,398 at major subsidiaries. The role breakdown includes 6,411 production employees and 1,405 technical employees, which helps explain the manufacturing and technical scale behind the group's business. It is not a measure of output per worker or proof of a skill shortage. The employee-liability table separately reports FY2012 additions of CNY 479,985,737.11 and payments of CNY 509,312,891.99. With an opening balance of CNY 47,541,859.87, the closing balance is CNY 18,214,704.99. These totals include wages, benefits, social insurance and other employee obligations across their reported accounting scope; they are not solely manufacturing wages or a second amount to add to production costs. Management reports no change in key technical staff affecting core competitiveness during the period. General training-session totals are omitted because the report does not connect them to a demonstrated production bottleneck, measured yield improvement or specific qualification outcome.

Reported parent major subsidiary employees / 2012 / year end

9,423 people

Reported production employees / 2012 / parent major subsidiary year end

6,411 people

Reported technical employees / 2012 / parent major subsidiary year end

1,405 people

Reported employee liability additions / 2012 / consolidated fy2012

RMB 479,985,737.11

Reported employee liability payments / 2012 / consolidated fy2012

RMB 509,312,891.99

Reported employee liability / 2012 / closing

RMB 18,214,704.99

Reported employee liability / 2012 / opening

RMB 47,541,859.87

Glass fiber and its products generated CNY 4,914,244,776.68 of main-business revenue and CNY 3,291,629,162.28 of cost in FY2012. The disclosed gross margin was 33.02%, down 1.47 percentage points: revenue rose 7.27%, while cost rose 9.68%. Management attributed weaker margin to lower selling prices, and described higher volumes as supporting revenue despite weaker demand. These are management explanations, rather than a separately disclosed, comparable tonnage or unit-price series. The product figures cover the glass-fiber category; they are not total group revenue, an individual yarn grade or the profit of each factory. The report discusses technical changes, product development and cost management as responses, while operating profit fell despite the rise in total revenue. Product gross margin therefore cannot stand in for operating profitability.

Reported business revenue / 2012 / glass fiber product main business

RMB 4,914,244,776.68

Reported business cost / 2012 / glass fiber product main business

RMB 3,291,629,162.28

Reported business gross margin / 2012 / glass fiber product main business

33.02%

Reported business revenue growth / 2012 / glass fiber product main business

7.27%

Reported business cost growth / 2012 / glass fiber product main business

9.68%

The financial note separates CNY 5,005,149,362.20 of main-business revenue from CNY 97,933,021.64 of other-business revenue, giving consolidated revenue of CNY 5,103,082,383.84. Their respective costs were CNY 3,367,285,750.62 and CNY 17,330,137.92, reconciling to total cost of CNY 3,384,615,888.54. Within main business, glass-fiber revenue is accompanied by CNY 90,904,585.52 of other-product revenue. Other-business income includes materials, energy, waste fiber, rents and services, with a separate residual category. It cannot all be reclassified as the other-product line or external trading. The narrative says glass fiber provided 96.30% of total revenue and describes the remainder as 3.70% other trade. The arithmetic remainder, CNY 188,837,607.16, combines other-product and other-business revenue; that arithmetic does not prove every component was a trading sale. Another narrative passage attributes 7.27% growth to main-business revenue overall, whereas the detailed note implies approximately 2.23% growth from its prior CNY 4,895,909,923.87; 7.27% matches the glass-fiber category. Both source scopes are retained rather than silently substituting one growth rate for the other.

Reported business revenue / 2012 / consolidated main business

RMB 5,005,149,362.2

Reported business revenue / 2012 / consolidated other business

RMB 97,933,021.64

Reported business revenue / 2012 / consolidated total

RMB 5,103,082,383.84

Reported business cost / 2012 / consolidated main business

RMB 3,367,285,750.62

Reported business cost / 2012 / consolidated other business

RMB 17,330,137.92

Reported business cost / 2012 / consolidated total

RMB 3,384,615,888.54

Jushi Group was the listed company's wholly owned glass-fiber manufacturing and selling subsidiary. Its FY2012 summary reports revenue of CNY 5,012,871,500, operating profit of CNY 445,165,400 and net profit of CNY 410,763,000. Reported assets were CNY 18,009,614,700, net assets CNY 6,194,039,400 and registered capital CNY 3,921,763,000. The table uses CNY 10,000, so these are scaled subsidiary figures, not separately added group results. The listed company owns Jushi Group, which in turn has manufacturing, input and trading subsidiaries; ownership of this entity is not a factory count. Its summary net profit is also distinct from profit attributable to its owners used in the restructuring compensation test. Acquisitions and capital contributions must be explained within their own recognition and cash perimeters rather than inferred from revenue or registered capital alone.

Reported ownership percentage / 2012 / jushi group subsidiary

100%

Reported registered capital / 2012 / jushi group subsidiary

RMB 3,921,763,000

Reported subsidiary total assets / 2012 / jushi group subsidiary

RMB 18,009,614,700

Reported subsidiary net assets / 2012 / jushi group subsidiary

RMB 6,194,039,400

Reported subsidiary revenue / 2012 / jushi group subsidiary

RMB 5,012,871,500

Reported subsidiary operating profit / 2012 / jushi group subsidiary

RMB 445,165,400

Reported subsidiary net profit / 2012 / jushi group subsidiary

RMB 410,763,000

Beixin Technology Development was 97.22% owned by the listed company and sold building-material products. Its FY2012 summary reports CNY 90,210,800 of revenue, an operating loss of CNY 10,689,900 and net profit of CNY 4,827,600. A positive net result therefore does not establish profitable day-to-day trading before nonoperating and other accounting effects; this summary alone does not bridge the difference. Assets were CNY 242,221,600, net assets CNY 59,461,200 and registered capital CNY 90,000,000. The minority interest remains separate from the parent's ownership. Beixin's subsidiary revenue is not interchangeable with the consolidated other-product, other-business or trading-industry classifications. Parent-only investment and dividend/receivable balances are separate accounting measures, not another set of group sales.

Reported ownership percentage / 2012 / beixin technology development subsidiary

97.22%

Reported registered capital / 2012 / beixin technology development subsidiary

RMB 90,000,000

Reported subsidiary total assets / 2012 / beixin technology development subsidiary

RMB 242,221,600

Reported subsidiary net assets / 2012 / beixin technology development subsidiary

RMB 59,461,200

Reported subsidiary revenue / 2012 / beixin technology development subsidiary

RMB 90,210,800

Reported subsidiary operating profit / 2012 / beixin technology development subsidiary

RMB -10,689,900

Reported subsidiary net profit / 2012 / beixin technology development subsidiary

RMB 4,827,600

Domestic main-business revenue was CNY 2,246,415,479.21, down 10.71% from the prior year; foreign main-business revenue was CNY 2,758,733,882.99, up 15.92%. These two regional rows sum to main-business revenue, rather than consolidated revenue including other-business income. They describe the sales-market perimeter, not revenue earned by every overseas manufacturing subsidiary. Management described softer demand and pricing, higher energy and labor costs and anti-dumping pressure. Its overseas selling network and the Egyptian construction project were different responses: sales reach does not establish a foreign factory had begun commercial production. The country-market rows provide no breakdown of each customer, yarn grade, realized tonnage or selling price, and growth alone does not establish a regional profit increase.

Reported business revenue / 2012 / domestic main business

RMB 2,246,415,479.21

Reported business revenue / 2012 / foreign main business

RMB 2,758,733,882.99

Reported business revenue growth / 2012 / domestic main business

-10.71%

Reported business revenue growth / 2012 / foreign main business

15.92%

The five largest disclosed customers contributed CNY 643,217,701.69, or 12.60% of consolidated revenue. They were Zhenshi Group Hengshi Fiber Foundation, with CNY 288,779,305.53; AMIANTIT FIBERGLASS INDUSTRIES LTD., CNY 108,793,245.62; CNBM Group Import and Export Company, CNY 95,871,812.90; HELMAG, CNY 77,102,386.79; and Shanghai Kingfa Technology Development, CNY 72,670,950.85. The related-party notes place Hengshi under the second-largest shareholder and the CNBM importer under the same controller as a shareholder. Their reported annual sales are included in the customer list, not added a second time as extra revenue. The separate related-sales categories include goods and other flows, while closing receivables describe amounts outstanding; neither is interchangeable with this annual customer-revenue ranking. This list supports disclosed sales relationships, without establishing every buyer's ultimate application, all end customers or an exclusive contract.

Reported top five customer sales / 2012 / consolidated annual

RMB 643,217,701.69

Reported top five customer share / 2012 / consolidated annual

12.6%

Reported named customer sales / 2012 / zhenshi hengshi annual

RMB 288,779,305.53

Reported named customer sales / 2012 / amiantit annual

RMB 108,793,245.62

Reported named customer sales / 2012 / cnbm import export annual

RMB 95,871,812.9

Reported named customer sales / 2012 / helmag annual

RMB 77,102,386.79

Reported named customer sales / 2012 / shanghai kingfa annual

RMB 72,670,950.85

At the end of FY2012, the company reports overseas subsidiaries in 14 countries and regions, including the United States, South Korea, Italy, Canada, Spain and France. It separately reports two exclusive distributors in the United Kingdom and Germany. The disclosure is presented as part of its global marketing network and its policy of developing markets alongside capacity expansion. Fourteen is a count of countries and regions, not a disclosed count of individual subsidiaries. The two distributors are a separate channel measure. Neither measure shows that each market has a manufacturing plant, nor does it provide subsidiary-level sales, customer orders or the revenue contributed by these channels. The network helps explain routes to overseas customers while the geographic sales table supplies a different measure of realized sales.

Reported overseas network geographies / 2012 / year end subsidiary presence

14 countries/regions

Reported exclusive distributors / 2012 / uk germany year end

2 distributors

The Tongxiang 60,000-tonne alkali-free glass-fiber line was undergoing furnace cold repair and a technical upgrade, rather than being disclosed as a new line adding that capacity. The investment summary reports a CNY 138,680,000 project amount and CNY 4,440,000 invested during the year and cumulatively, using rounded ten-thousand-yuan figures. The financial note gives CNY 4,444,598.43 of actual investment and CNY 355,738,788.62 of existing net fixed assets transferred into construction in progress. Together these reconcile to the CNY 360,183,387.05 closing balance; that balance is not new cash expenditure. The note reports a CNY 208,058,500 budget. A later description includes CNY 69,383,100 for supporting utilities within this total. Subtracting that utility component gives CNY 138,675,400, close to the summary amount at its rounding precision; this arithmetic helps explain the different scope without replacing either source figure. Work began in November 2012, with April 2013 expected completion in the note and the first half of the following year in the summary. These are historical expectations, not confirmation that the work finished by either date.

Project budget / 2012 / management table amount

RMB 138,680,000

Project budget / 2012 / financial note including support

RMB 208,058,500

Reported project annual investment / 2012 / rounded management table

RMB 4,440,000

Reported project cumulative investment / 2012 / rounded management to date

RMB 4,440,000

Reported project annual investment / 2012 / financial note actual

RMB 4,444,598.43

Reported project asset transfer / 2012 / fixed assets to cip net

RMB 355,738,788.62

Reported cip net / 2012 / cold repair

RMB 360,183,387.05

Project budget / 2012 / included supporting utilities

RMB 69,383,100

The Chengdu subsidiary was preparing to convert its 60,000-tonne medium-alkali glass-fiber line. The management table gives a CNY 599,800,000 project amount and CNY 16,900,000 of annual and cumulative investment, with preparation underway and completion expected by year end. The later note records approval on 12 November 2012, an estimated CNY 599,797,200 investment, a planned March 2013 construction start and July 2013 completion. It describes 40% own funding and 60% intended long-term borrowing; these proportions are a financing plan, not evidence that the loans had already been received. Separately, the construction schedule labels a technical upgrade as an 80,000-tonne line with the same exact budget, but only CNY 323,452.40 in its closing balance. The disclosed capacity, expenditure and stage perimeters differ. The 80,000-tonne accounting row is retained separately at business level, rather than silently merged into this project or treated as confirmed output. The report provides enough detail to understand the proposed conversion, while leaving the internal naming difference explicit.

Project budget / 2012 / management table amount

RMB 599,800,000

Reported project annual investment / 2012 / management table

RMB 16,900,000

Reported project cumulative investment / 2012 / management table to date

RMB 16,900,000

Project budget / 2012 / approval estimate

RMB 599,797,200

Reported project planned funding share / 2012 / planned own funding

40%

Reported project planned funding share / 2012 / planned long term borrowing

60%

The Chengdu packaging-material workshop upgrade was still under construction at year end. The investment summary reports a CNY 79,900,000 project amount and CNY 29,260,000 invested both during FY2012 and cumulatively. The implementing company and packaging-workshop description identify the existing project used in the later annual accounts, without relying only on the amount. The financial note separately names support works for a 130,000-tonne glass-fiber line, with a CNY 79,900,000 budget, CNY 29,259,768.97 closing balance and 40% reported progress. The close amounts provide a comparison reference but do not prove that every supporting-work item belongs to the packaging workshop. The source-specific accounting row remains separately scoped. A packaging workshop or support-work reference is not itself evidence that 130,000 tonnes of new fiber capacity was installed, nor that either project had completed or generated a measured sales benefit.

Project budget / 2012 / management packaging table

RMB 79,900,000

Reported project annual investment / 2012 / management packaging table

RMB 29,260,000

Reported project cumulative investment / 2012 / management packaging to date

RMB 29,260,000

Construction of the Egyptian 80,000-tonne glass-fiber line began in January 2012. The management table describes production and residential buildings under construction, a USD 223,310,000 project amount and CNY 534,860,000 of annual and cumulative investment. The budget and investment use different currencies; they are not summed or converted using an assumed exchange rate. Management expected production in 2013 to serve customers in markets affected by anti-dumping measures against Chinese-origin glass fiber. This explains the intended manufacturing role, rather than proving 2012 production, customer deliveries or exemption from trade measures. Eight construction-note rows labeled as parts of project 301 total CNY 384,926,799.97. The cited rows do not explicitly establish that this sum is the complete Egyptian investment perimeter, so it is not substituted for the management amount, added to it or presented as Egyptian cash expenditure. The annual account places Egypt in construction, while the sales-market data elsewhere describe revenue geography rather than the factory itself.

Project budget / 2012 / management egypt table

223,310,000 USD

Reported project annual investment / 2012 / management egypt table

RMB 534,860,000

Reported project cumulative investment / 2012 / management egypt to date

RMB 534,860,000

The US subsidiary proposed a 100,000-tonne alkali-free glass-fiber line with a USD 331,130,000 project amount. The summary explicitly reports preparation, no formal construction start and zero annual and cumulative investment. The proposed line was part of management's international-expansion strategy, intended to use overseas resources and respond to anti-dumping risk. Those objectives are not achieved production, confirmed savings or an established regulatory exemption. The zero investment columns are reported zeros, rather than amounts inferred from a missing disclosure. This planning-stage record remains distinct from an operating US factory and is not automatically merged with later proposals of a different scale without evidence of continuity.

Project budget / 2012 / management us table

331,130,000 USD

Reported project annual investment / 2012 / management us table

RMB 0

Reported project cumulative investment / 2012 / management us to date

RMB 0

Jushi Panding Electronic Substrate proposed an electronic-fabric production line with planned annual capacity of 100 million metres. The FY2012 strategy passage places it in preparatory work and identifies the implementing subsidiary, rather than reporting an operating line, trial output or customer deliveries. The same subsidiary and 100-million-metre electronic-fabric scope identify the project described in the subsequent annual account; the historical preparation stage remains tied to FY2012. Its output measure is fabric length. It cannot be converted into glass-fiber tonnage or added to furnace capacity without a separately disclosed conversion basis. The FY2012 passage does not give a project budget, investment total, precise location or construction-completion date. Those missing details are left undisclosed here rather than filled from a later period.

Annual production capacity / 2012 / planned electronic fabric

100,000,000 metres/year

Consolidated construction in progress was CNY 1,371,110,767.70 at year end, compared with CNY 570,167,231.84 at the opening. Management attributes the rise to Egyptian factory preparation and transfer of an existing furnace line for cold repair. The balance is therefore not simply cash spent on new capacity. The selected major-project schedule closes at CNY 1,327,298,609.26, a narrower accounting perimeter than total construction in progress. Its unassigned 80,000-tonne upgrade row has a CNY 599,797,200 budget and CNY 323,452.40 closing balance, including CNY 128,452.40 capitalized interest. The support-work row linked in its name to a 130,000-tonne line has a CNY 79,900,000 budget and CNY 29,259,768.97 closing balance; its reported progress is 40%. These remain separate from the differently named Chengdu management-table projects. The 308-line electric-assisted-melting upgrade has a CNY 13,519,340 alteration budget, CNY 1,420,170.46 of current additions and a much larger CNY 531,787,523.85 closing balance. The table reports 80% progress and a 112.65% spending-to-budget ratio. The large inherited balance, alteration budget and reported ratios are not interchangeable, and the cited note does not bridge them. Short ledger labels establish recorded works, not a plant address, full technical specification or measured commercial performance.

Reported cip ledger balance / 2012 / consolidated total

RMB 1,371,110,767.7

Reported cip ledger balance / 2012 / consolidated opening

RMB 570,167,231.84

Reported cip ledger balance / 2012 / major projects subtotal

RMB 1,327,298,609.26

Reported cip ledger budget / 2012 / unassigned 80kt upgrade row

RMB 599,797,200

Reported cip ledger balance / 2012 / unassigned 80kt upgrade row

RMB 323,452.4

Reported cip ledger capitalized interest / 2012 / unassigned 80kt upgrade row

RMB 128,452.4

Reported cip ledger budget / 2012 / unassigned 130kt support row

RMB 79,900,000

Reported cip ledger balance / 2012 / unassigned 130kt support row

RMB 29,259,768.97

Reported cip ledger progress / 2012 / unassigned 130kt support row

40%

Reported cip ledger budget / 2012 / 308 electric assist upgrade

RMB 13,519,340

Reported cip ledger additions / 2012 / 308 electric assist upgrade

RMB 1,420,170.46

Reported cip ledger balance / 2012 / 308 electric assist upgrade

RMB 531,787,523.85

Reported cip ledger progress / 2012 / 308 electric assist upgrade

80%

Reported cip ledger investment budget ratio / 2012 / 308 electric assist upgrade

112.65%

The FY2012 distribution proposal uses the 872,629,500 shares outstanding at 31 December 2012 and CNY 1 per ten shares, before tax. The 40,868,900 compensation shares are excluded from dividend entitlement. Subtraction gives 831,760,600 eligible shares, which reconcile to the proposed CNY 83,176,060 cash distribution. The exclusion affects the proposed payment base; it does not prove that those shares had already been canceled. Parent-company net profit was CNY 96,631,025.38, whereas consolidated profit attributable to listed-company owners was CNY 274,183,405.08. These are distinct accounting perimeters, not interchangeable measures of distributable cash. No capital-reserve conversion was proposed for FY2012. The financial note dates the resolution 13 March 2012 while using share capital at 31 December 2012; the report is signed 13 March 2013. That inconsistent source date is retained without inventing a corrected event date. This account explains a proposal, rather than evidence that the FY2012 dividend had been paid.

Reported shareholder share base / 2012 / fy2012 distribution year end base

872,629,500 shares

Reported cash dividend per ten shares / 2012 / fy2012 proposed before tax

1 CNY/10 shares

Reported shareholder cash dividend / 2012 / fy2012 proposed before tax

RMB 83,176,060

The historical note describes the 27 April 2012 shareholder approval for the FY2011 distribution on a 581,753,000-share base: CNY 1.38 per ten shares and five additional shares per ten through capitalization of reserves. The financial note says CNY 80,281,914 was distributed in cash; dividing that amount by the share base gives CNY 1.38 per ten shares. The dividend-summary row nevertheless prints CNY 1.39 per ten shares. Both source rates are retained, with the arithmetic explaining why the note rate matches the disclosed total. The reserve conversion added 290,876,500 shares, bringing share capital to 872,629,500. It was a transfer from reserves, rather than a fresh cash equity issue. The cash dividend and the increase in share count therefore have different effects on company cash and per-share comparisons. The FY2011 entitlement, its FY2012 approval/implementation account and the separate FY2012 dividend proposal are kept apart.

Reported shareholder share base / 2012 / fy2011 distribution approved fy2012

581,753,000 shares

Reported shareholder cash dividend / 2012 / fy2011 distribution paid fy2012

RMB 80,281,914

Reported cash dividend per ten shares / 2011 / fy2011 distribution financial note

1.38 CNY/10 shares

Reported cash dividend per ten shares / 2011 / fy2011 distribution summary table

1.39 CNY/10 shares

Reported reserve conversion shares / 2012 / fy2011 conversion implemented fy2012

290,876,500 shares

Reported reserve conversion per ten shares / 2012 / fy2011 conversion implemented fy2012

5 shares/10 shares

The group received CNY 12,138,148,035.15 in borrowing cash and paid CNY 12,631,589,252.22 to repay debt during FY2012. These are gross annual cash flows: they show financing turnover but do not measure closing debt or imply that all borrowing receipts were new net debt. Bond issuance contributed CNY 1,900,000,000 of cash, alongside the other financing rows. Payments for dividends, profit distributions and interest together totaled CNY 755,896,842.79; that combined row cannot be labeled as dividends alone. Net financing cash was CNY 878,458,575.40. Operating cash of CNY 1,128,842,340.70, net investing cash of negative CNY 1,330,941,131.96, this financing flow and the negative CNY 4,690,392.24 exchange-rate effect reconcile to a CNY 671,669,391.90 increase in cash and cash equivalents. Adding that increase to opening cash of CNY 1,110,653,687.30 gives closing cash of CNY 1,782,323,079.20. The bridge explains cash funding across the year; it does not establish future refinancing availability.

Reported consolidated borrowing cash receipts / 2012 / consolidated fy2012

RMB 12,138,148,035.15

Reported debt cash repayments / 2012 / consolidated fy2012

RMB 12,631,589,252.22

Reported bond cash receipts / 2012 / consolidated fy2012

RMB 1,900,000,000

Reported dividend profit interest cash payments / 2012 / consolidated combined fy2012

RMB 755,896,842.79

Reported financing cash flow / 2012 / consolidated fy2012

RMB 878,458,575.4

Reported cash fx effect / 2012 / consolidated fy2012

RMB -4,690,392.24

Reported cash equivalent increase / 2012 / consolidated fy2012

RMB 671,669,391.9

Reported cash equivalents / 2012 / consolidated opening fy2012

RMB 1,110,653,687.3

Consolidated year-end short-term borrowings were CNY 5,450,126,725.92. Current maturities of long-term borrowings were a separate CNY 1,537,802,437.77, while noncurrent long-term borrowings were CNY 3,939,439,246.53. These distinguish short-term loans from the portion of longer loans falling due within one year and the remaining noncurrent balance. The current-maturity note says none of the loans in that disclosed category was an overdue loan that had obtained an extension; that statement does not prove there was no refinancing risk elsewhere. Financing-lease payables were CNY 99,709,501.05 in the current category and CNY 157,683,042.05 in the noncurrent long-payables schedule. Total noncurrent long-term payables of CNY 386,937,724.52 include other obligations and should not all be called bank loans or added again to the lease component. Debt balances are distinct from annual cash repayments and from guarantees supporting subsidiaries.

Reported short-term borrowings / 2012 / consolidated year end

RMB 5,450,126,725.92

Reported current long term borrowings / 2012 / consolidated year end

RMB 1,537,802,437.77

Reported noncurrent long term borrowings / 2012 / consolidated year end

RMB 3,939,439,246.53

Reported finance lease payables / 2012 / consolidated current year end

RMB 99,709,501.05

Reported finance lease payables / 2012 / consolidated noncurrent year end

RMB 157,683,042.05

Reported long term payables / 2012 / consolidated noncurrent year end

RMB 386,937,724.52

Jushi Group issued CNY 700,000,000 of unsecured short-term financing bills, or commercial paper, on 21 February 2012, with a 366-day term and 6% coupon. The year-end other-current-liability balance for this instrument was CNY 736,633,333.34. The listed company separately issued a CNY 1,200,000,000 corporate bond on 17 October 2012 with a seven-year term and an unsecured 5.56% fixed coupon for the first five years. At the end of year five, the issuer could increase the coupon and investors could exercise a put; 17 October 2017 was the repayment date for the portion put back. The last two years could therefore carry an increased coupon, and the seven-year term did not mean every holder had to wait until 2019. Its year-end carrying balance was CNY 1,189,706,342.33 and reported interest payable was CNY 13,861,917.81. The two issuers and instruments are therefore not interchangeable, even though their stated issuance amounts together match CNY 1,900,000,000 of bond cash receipts in the consolidated cash-flow statement. Face amounts, carrying balances and separately disclosed interest payable remain distinct. The difference between face amount and carrying balance is not given an invented bridge or described as additional cash received. The short-term instrument places funding obligations on a different timetable from the corporate bond and its fifth-year put option.

Reported debt security face amount / 2012 / jushi group commercial paper issued fy2012

RMB 700,000,000

Reported debt security carrying amount / 2012 / jushi group commercial paper year end

RMB 736,633,333.34

Reported debt security face amount / 2012 / listed company corporate bond issued fy2012

RMB 1,200,000,000

Reported debt security carrying amount / 2012 / listed company corporate bond year end

RMB 1,189,706,342.33

Reported debt security interest payable / 2012 / listed company corporate bond year end

RMB 13,861,917.81

Reported debt security coupon / 2012 / jushi group commercial paper

6%

Reported debt security term / 2012 / jushi group commercial paper

366 days

Reported debt security coupon / 2012 / listed company corporate bond initial five years

5.56%

Reported debt security term / 2012 / listed company corporate bond put at year five

7 years

The shareholder-meeting record approved a CNY 800,000,000 contribution to Jushi Group in July 2012 alongside the Jinshi and Leishi acquisitions, and a CNY 1,150,000,000 contribution in November 2012 alongside the Chengdu line-conversion and other decisions. The approvals sum to CNY 1,950,000,000. The parent investment-account table also records that amount of annual additions for Jushi Group, whose closing investment cost was CNY 7,661,620,009.39. These are approval and investment-account measures. The already-described parent cash-flow table separately shows CNY 1,400,000,000 paid for investments during FY2012, so the accounting addition and cash payment must not be silently equated or added as two separate project budgets. The passages cited here do not demonstrate a complete timing or settlement bridge between them. The group's manufacturing projects retain their own design capacity, budgets and construction stages; the shareholder funding decisions do not prove that those projects were all commissioned.

Reported approved subsidiary contribution / 2012 / jushi july 2012

RMB 800,000,000

Reported approved subsidiary contribution / 2012 / jushi november 2012

RMB 1,150,000,000

Reported parent investment addition / 2012 / jushi fy2012

RMB 1,950,000,000

Reported parent subsidiary investment cost / 2012 / jushi year end

RMB 7,661,620,009.39

The restructuring agreement for Jushi Group used FY2012 profit attributable to its owners of CNY 770,860,000, compared with audited actual profit of CNY 401,200,000. The reported CNY 369,660,000 shortfall is the difference between those measures. It is not an operating loss or a cash repayment. The filing says CNBM, Zhenshi Holding Group, Pearl Success International and Surest Finance would calculate share compensation according to their former interests in Jushi Group under the agreement and supplement. Its distribution passage reports 40,868,900 shares locked for compensation and excluded from dividends. This is a disclosed compensation-share figure for the FY2012 assessment, without a stated locking date or proof that cancellation had been completed. The actual owner-profit measure differs from the subsidiary summary net profit of CNY 410,763,000; the two must not be substituted in the compensation test. The commitment table specifies a 2011-2013 assessment period. A separate generic statement that the company was not in a profit-forecast period does not negate this specific agreement or the disclosed shortfall.

Reported compensation target / 2012 / jushi group fy2012 owner profit

RMB 770,860,000

Reported compensation actual profit / 2012 / jushi group fy2012 owner profit

RMB 401,200,000

Reported compensation shortfall / 2012 / jushi group fy2012 owner profit

RMB 369,660,000

Reported compensation shares / 2012 / fy2012 compensation assessment

40,868,900 shares

Year-end guarantees to subsidiaries were CNY 5,531,005,368.38, equal to the reported total guarantee balance and 152.04% of company net assets. Guarantee occurrence during FY2012 was CNY 9,186,925,855, a period measure rather than another closing balance. The report records zero external guarantees excluding subsidiaries; that narrower zero does not mean the company had no guarantees. These commitments support subsidiary obligations and represent contingent exposure, not automatically cash paid or an extra borrowing balance to add to consolidated debt. The table reports CNY 703,645,810 of guarantees for beneficiaries with debt-to-assets ratios above 70%, and labels CNY 4,827,359,558.38 as the category for the part above 50% of net assets. These are classifications within the disclosed total, not additional layers to sum onto it. The source labels are retained without independently reconstructing that latter classification. The table alone does not establish that a guarantee was called or that a beneficiary defaulted.

Closing subsidiary-guarantee balance / 2012 / subsidiaries year end

RMB 5,531,005,368.38

Reported guarantee occurrence / 2012 / subsidiaries annual

RMB 9,186,925,855

Reported guarantee net assets ratio / 2012 / total year end as reported

152.04%

Closing subsidiary-guarantee balance / 2012 / external excluding subsidiaries

RMB 0

Reported guarantee classification amount / 2012 / beneficiaries above 70pct debt assets

RMB 703,645,810

Reported guarantee classification amount / 2012 / issuer labeled excess 50pct net assets

RMB 4,827,359,558.38

Jushi Group acquired 75% each of Tongxiang Jinshi Precious Metal and Tongxiang Leishi Micropowder from Assure Glory Holdings. Their acquisition agreement carried a separate 2012-2014 profit-compensation assessment period. The combined profit attributable to owners was targeted at CNY 75,476,200 for FY2012, CNY 75,249,700 for FY2013 and CNY 72,692,900 for FY2014. If actual combined annual profit fell short, the seller was to compensate Jushi Group under the agreement. Those are contractual targets, not achieved profits, cash receipts or the much larger Jushi Group restructuring target. The commitment table describes the seller's controller as also controlling Pearl Success International, a shareholder with more than 5% of the listed company. This disclosed connection matters to the acquisition and related-party context; it does not establish every other counterparty relationship. The cited commitment table alone neither measures actual combined FY2012 performance nor proves compensation had been received.

Reported acquired ownership percentage / 2012 / each jinshi leishi acquisition

75%

Reported compensation target / 2012 / jinshi leishi fy2012 combined owner profit

RMB 75,476,200

The year-end shareholder table records China National Building Material Company Limited, or CNBM, with 32.79% of the issuer and identifies it as the controlling shareholder. The actual-controller section separately names China National Building Material Group Corporation. The listed shareholder and its parent group are distinct legal entities; their unrelated group revenues and assets are not added to the issuer's operating results. Zhenshi Holding Group held 180,425,264 issuer shares, or 20.68%, of which 179,946,560 were reported pledged. This is a shareholder-share encumbrance, distinct from collateral pledged by the manufacturing group or a pledge of factory equipment. It does not establish that the pledge was enforced or control changed. The report says CNBM, Zhenshi, Pearl Success and Surest Finance were not related parties or acting in concert under the stated shareholding-disclosure framework; it leaves relationships among other shareholders unknown. Those are bounded issuer disclosures, not a blanket independent finding about every shareholder relationship.

Reported issuer controlling shareholding percentage / 2012 / cnbm year end

32.79%

Reported issuer major shareholding percentage / 2012 / zhenshi year end

20.68%

Reported issuer major shareholding / 2012 / zhenshi year end

180,425,264 shares

Reported issuer shareholder pledged shares / 2012 / zhenshi year end

179,946,560 shares

In the FY2012 annual report, management says anti-dumping investigations and resulting measures in Turkey, India and the European Union had affected exports of glass-fiber products from China and other origins. It reports exports to those markets recovering from late 2010 against demand and insufficient local capacity. The company expected the Egyptian 80,000-tonne-per-year line, then under construction and expected to start in 2013, to supply customers in those markets and reduce the adverse impact. This explains an issuer-reported commercial reason for the international project; it does not establish later commissioning, achieved sales or blanket exemption from trade measures. The report also identifies export-tax policy, renminbi movements, interest costs and working-capital efficiency as exposures. These are historical disclosed risks and management responses, not a determination of current trade or tax law. Broad market forecasts and leadership expectations are condensed rather than presented as company achievements.

The financial report contains a standard unqualified audit opinion on the parent and consolidated financial statements for FY2012 under Chinese Accounting Standards. The opinion is dated 15 March 2013. It says the financial statements fairly present the relevant financial position, operating results and cash flows in all material respects. The financial auditor considered internal controls when designing audit procedures, but expressly did not use that financial-statement audit to provide an opinion on the effectiveness of controls. The separate internal-control section reports that the board found no material design or execution deficiencies for the stated period and that the auditor issued an unqualified opinion on financial-reporting internal controls. That is the annual report's description of a separate control engagement; it is not treated as a directly read standalone control report. Neither the financial audit nor management's control statements constitute independent editorial review of SinoFilings translations or a guarantee of the absence of every operating risk. Routine committee procedures and meeting attendance are condensed.

The consolidated group generated CNY 1,128,842,340.70 of net operating cash in FY2012, compared with CNY 1,270,759,508.65 in the prior-year column. This is cash from operating activities after related payments, rather than sales revenue or accounting profit. Cash received from sales of goods and services was CNY 3,650,689,352.84. The cash-flow reconciliation starts from net profit of CNY 283,576,505.74 and includes a CNY 706,354,656.43 depreciation adjustment, CNY 16,408,081.14 of intangible-asset amortization and a CNY 712,418,643.10 financial-expense adjustment. These adjustments explain why profit is not operating cash; the financial-expense adjustment is a reconciliation item, not the entire profit-statement expense or an operating cash payment. The inventory adjustment was negative CNY 108,369,651.74, operating receivables negative CNY 39,040,214.06 and operating payables negative CNY 412,525,083.01. They reduced cash in this reconciliation. Their scopes must not be replaced by simple changes in individual balance-sheet accounts or used to claim that every supplier balance fell. The cited adjustments are selected explanatory items, not a complete re-performance of every reconciliation line.

Reported operating cash flow / 2012 / consolidated fy2012

RMB 1,128,842,340.7

Reported comparative operating cash flow / 2011 / consolidated prior column in fy2012

RMB 1,270,759,508.65

Reported sales cash receipts / 2012 / consolidated fy2012

RMB 3,650,689,352.84

Reported cash reconciliation profit / 2012 / consolidated fy2012

RMB 283,576,505.74

Reported cash reconciliation depreciation / 2012 / consolidated fy2012

RMB 706,354,656.43

Reported cash reconciliation amortization / 2012 / consolidated intangible fy2012

RMB 16,408,081.14

Reported cash reconciliation financial expense / 2012 / consolidated fy2012

RMB 712,418,643.1

Reported signed inventory adjustment in cash bridge / 2012 / consolidated fy2012

RMB -108,369,651.74

Reported signed operating-receivable adjustment / 2012 / consolidated operating fy2012

RMB -39,040,214.06

Reported signed operating-payable adjustment / 2012 / consolidated operating fy2012

RMB -412,525,083.01

Consolidated investing cash outflows totaled CNY 1,399,664,224.34. They comprise CNY 983,855,930.08 paid for fixed assets, intangible assets and other long-lived assets, CNY 3,500,000 of investment payments and CNY 412,308,294.26 of net cash paid to acquire subsidiaries or other business units. These categories reconcile exactly to the outflow total. Acquisition payments therefore must not be described as construction spending, while payments for long-lived assets are a broader cash category than a single factory project. Investing cash inflows were CNY 68,723,092.38, including recoveries and disposals. After those inflows, net investing cash was negative CNY 1,330,941,131.96. This net flow measures company investment funding requirements; it is not the annual construction ledger, a project budget or an allocation of cash to the Egyptian plant.

Reported investing cash outflow / 2012 / consolidated fy2012

RMB 1,399,664,224.34

Reported long lived asset cash payments / 2012 / consolidated fy2012

RMB 983,855,930.08

Reported investment cash payments / 2012 / consolidated fy2012

RMB 3,500,000

Reported acquisition net cash payments / 2012 / consolidated fy2012

RMB 412,308,294.26

Reported investing cash inflow / 2012 / consolidated fy2012

RMB 68,723,092.38

Reported investing cash flow / 2012 / consolidated fy2012

RMB -1,330,941,131.96

At year-end, consolidated monetary funds were CNY 2,120,944,070.88. The cash note identifies CNY 338,620,991.68 restricted by pledges, freezing or other realization limits. Subtracting those restricted funds gives CNY 1,782,323,079.20, exactly the closing cash and cash-equivalent balance in the cash-flow statement. Monetary funds held overseas were CNY 690,633,259.69, a disclosed subset rather than an additional amount to add to the total. Management attributes the increase in monetary funds principally to construction-period funding at Jushi Egypt; the note does not allocate all group cash to that project. The wider restricted-asset schedule totals CNY 4,765,722,654.32: the same restricted cash, CNY 33,867,627.20 of bills receivable, CNY 79,387,060.63 of receivables, CNY 4,245,878,156.28 of fixed assets and CNY 67,968,818.53 of intangible assets. The report attributes these restrictions to mortgages, pledges and deposits. Those book values describe financing collateral and restrictions, not cash losses or evidence that the factories could not operate.

Reported monetary funds / 2012 / consolidated year end

RMB 2,120,944,070.88

Reported monetary funds restricted for bill deposits and term deposits / 2012 / consolidated year end

RMB 338,620,991.68

Reported cash equivalents / 2012 / consolidated year end

RMB 1,782,323,079.2

Reported overseas monetary funds / 2012 / consolidated year end subset

RMB 690,633,259.69

Reported restricted assets / 2012 / consolidated year end total

RMB 4,765,722,654.32

Reported restricted assets / 2012 / consolidated bills receivable

RMB 33,867,627.2

Reported restricted assets / 2012 / consolidated receivables

RMB 79,387,060.63

Reported restricted assets / 2012 / consolidated fixed assets

RMB 4,245,878,156.28

Reported restricted assets / 2012 / consolidated intangible assets

RMB 67,968,818.53

The parent-company column reports net operating cash of negative CNY 17,836,409.85, net investing cash of negative CNY 1,052,195,486.07 and net financing cash of CNY 1,039,528,566.10. Parent cash and cash equivalents closed at CNY 177,523,278.96. The parent is therefore not the same cash-generating perimeter as the consolidated operating group. The parent column also reports CNY 1,400,000,000 of investment cash payments. That is a financial-statement cash flow, not proof that every capital increase described elsewhere had been paid in full or that all parent investment was construction spending. Consolidated operating cash and available group cash must not be replaced by these parent figures.

Reported operating cash flow / 2012 / parent fy2012

RMB -17,836,409.85

Reported investing cash flow / 2012 / parent fy2012

RMB -1,052,195,486.07

Reported financing cash flow / 2012 / parent fy2012

RMB 1,039,528,566.1

Reported cash equivalents / 2012 / parent year end

RMB 177,523,278.96

Reported investment cash payments / 2012 / parent fy2012

RMB 1,400,000,000

Consolidated gross accounts receivable closed at CNY 1,525,932,145.92, with CNY 64,521,226.19 of bad-debt allowances. Subtraction gives a net carrying amount of CNY 1,461,410,919.73; neither the gross balance nor the allowance is cash collected. Management attributes the substantial receivable balance to relatively long customer credit periods. The collective aging cohort contains CNY 1,510,883,137.09 of gross balances, of which CNY 1,254,427,801.85, or the reported 83.03%, is within one year. That percentage uses the cohort denominator, not all gross receivables including separately assessed items. Separately assessed trade balances of CNY 15,049,008.83 are fully provided because the company expected them to be uncollectible and had no ongoing dealings. Actual FY2012 trade-receivable writeoffs were CNY 3,056,134.98. A closing allowance, a writeoff and an annual impairment charge are different measures; the tables do not establish that all remaining balances will be recovered. The five largest gross accounts totaled CNY 200,326,838.25, reported as 13.12% of total gross receivables, rather than a customer-sales concentration measure.

Reported gross trade receivables / 2012 / consolidated year end

RMB 1,525,932,145.92

Reported trade receivable allowance / 2012 / consolidated year end

RMB 64,521,226.19

Reported gross trade receivables / 2012 / collective aging cohort year end

RMB 1,510,883,137.09

Reported gross trade receivables / 2012 / collective aging within one year

RMB 1,254,427,801.85

Reported receivable aging percentage / 2012 / collective aging within one year

83.03%

Reported gross trade receivables / 2012 / separately assessed fully provided

RMB 15,049,008.83

Reported trade receivable writeoffs / 2012 / consolidated fy2012

RMB 3,056,134.98

Reported top five receivable balance / 2012 / consolidated year end

RMB 200,326,838.25

Reported top five receivable percentage / 2012 / consolidated gross year end

13.12%

Gross prepayments were CNY 284,458,219.72 at year-end, compared with CNY 65,733,908.94 in the opening column. The closing bad-debt allowance was CNY 8,085,740.01, so the net carrying amount is CNY 276,372,479.71 by subtraction. Management attributes the increase to advance payments for projects. These balances are distinct from completed construction assets, the annual cash investment total and unpaid supplier obligations. The leading-prepayment table includes CNY 13,592,915.29 to Tongxiang Huarui Automatic Control Technology Equipment, identified as controlled by the second-largest shareholder. The related-party schedule identifies this as an equipment prepayment. It is already inside the total prepayment balance, not another amount to add to project spending. The leading items were awaiting invoices according to the source; that description does not establish that suppliers had defaulted or that payments were overdue.

Reported prepayments gross / 2012 / consolidated year end

RMB 284,458,219.72

Reported prepayments gross / 2012 / consolidated opening fy2012

RMB 65,733,908.94

Reported prepayment allowance / 2012 / consolidated year end

RMB 8,085,740.01

Reported related equipment prepayment / 2012 / huarui year end

RMB 13,592,915.29

Gross other receivables were CNY 139,337,752.25 and the related allowance was CNY 12,721,941.24 at year-end. Their difference, CNY 126,615,811.01, is a net carrying amount and must not be combined with customer trade receivables as if all were product sales. Management explains the increase principally by a CNY 24,000,000 financing-lease deposit paid during the year. The leading-balances table reports that amount against CMB Financial Leasing. A lease deposit ties up funds under the arrangement; it is not revenue, available cash or repayment of lease principal. The note separately records CNY 646,540.99 of other-receivable writeoffs against Shenzhen Dapeng Cement, identified as a related transaction and uncollectible after the company was deregistered. That specific loss does not imply all related balances were impaired or that the lease deposit itself was written off.

Reported gross other receivables / 2012 / consolidated year end

RMB 139,337,752.25

Reported other receivable allowance / 2012 / consolidated year end

RMB 12,721,941.24

Reported finance lease deposit / 2012 / cmb leasing closing other receivable

RMB 24,000,000

Reported other receivable writeoffs / 2012 / dapeng related fy2012

RMB 646,540.99

Consolidated inventory had a gross balance of CNY 1,696,071,081.67 and a valuation allowance of CNY 4,923,068.60, leaving CNY 1,691,148,013.07 of carrying value. The opening gross balance was CNY 1,519,216,180.06. Finished goods accounted for CNY 1,369,937,172.87 gross, or CNY 1,367,473,793.53 after their CNY 2,463,379.34 allowance. Raw materials were CNY 224,548,523.03, with additional categories such as goods in transit and work in progress in the source table. Management attributes the inventory balance principally to stocking for sales. This explains the company's rationale, rather than demonstrating eventual demand, specific unfilled orders or the absence of obsolete goods. The total valuation allowance remained unchanged between the opening and closing columns; it is a balance, not a newly charged impairment expense or a cash outflow. Inventory amounts are not production tonnage and should not be allocated to individual plants without further disclosure.

Reported gross inventory / 2012 / consolidated year end

RMB 1,696,071,081.67

Reported inventory allowance / 2012 / consolidated year end

RMB 4,923,068.6

Reported inventory carrying amount / 2012 / consolidated year end

RMB 1,691,148,013.07

Reported gross inventory / 2012 / consolidated opening fy2012

RMB 1,519,216,180.06

Reported gross inventory / 2012 / finished goods year end

RMB 1,369,937,172.87

Reported inventory carrying amount / 2012 / finished goods year end

RMB 1,367,473,793.53

Reported inventory allowance / 2012 / finished goods year end

RMB 2,463,379.34

Reported gross inventory / 2012 / raw materials year end

RMB 224,548,523.03

FY2012 financial expenses totaled CNY 717,285,186.82. The note reports CNY 695,567,578.02 of interest expense, subtracts CNY 2,525,851.96 of interest income and includes an exchange-loss row of negative CNY 1,433,105.62, meaning a gain in that expense calculation, plus CNY 25,676,566.38 of other costs. These components reconcile to the expense total. The note therefore shows the profit effect of financing and currency movements, rather than the amount of gross borrowing or all cash interest paid. Its profit-statement expense is also distinct from the financial-expense adjustment used to reconcile net profit to operating cash. Those measures should not be substituted when explaining the cash available to fund investment.

Reported financial expense / 2012 / consolidated fy2012

RMB 717,285,186.82

Reported interest expense / 2012 / consolidated fy2012

RMB 695,567,578.02

Reported interest income / 2012 / consolidated fy2012 expense note

RMB 2,525,851.96

Reported exchange loss / 2012 / consolidated fy2012 expense note

RMB -1,433,105.62

Reported other financing expense / 2012 / consolidated fy2012

RMB 25,676,566.38

Investment income was CNY 21,215,113.34 in FY2012, comprising CNY 23,332,252.51 of gains on disposal of long-term equity investments offset by negative CNY 2,117,139.17 of equity-accounted investment results. This is a profit contribution from investments and disposals, not glass-fiber sales or the cash proceeds of those disposals. Nonoperating income included CNY 50,723,592.20 of government subsidies; the source classified CNY 40,375,464.21 of that amount in nonrecurring profit and loss, so the full subsidy figure and that subset are not interchangeable. The grant schedule includes CNY 7,830,000 identified as a natural-gas price-difference subsidy relating to 2011, CNY 2,000,000 of new working-capital loan interest support and CNY 4,520,000 of infrastructure support for a technical-upgrade project in the current column. These items help explain funding and energy-cost support; their historical labels do not turn them into sales earned in those earlier years or prove that every grant was received in cash during FY2012. Income recognition, project funding and sustainability of product profit remain separate. The selected items do not reproduce the entire subsidy ledger.

Consolidated investment income or loss / 2012 / consolidated fy2012

RMB 21,215,113.34

Reported investment disposal gain / 2012 / consolidated fy2012

RMB 23,332,252.51

Reported equity accounted result / 2012 / consolidated fy2012

RMB -2,117,139.17

Reported government subsidy income / 2012 / consolidated fy2012

RMB 50,723,592.2

Reported government subsidy income / 2012 / nonrecurring subset fy2012

RMB 40,375,464.21

Reported government subsidy income / 2012 / gas price difference 2011 label current column

RMB 7,830,000

Reported government subsidy income / 2012 / working capital interest support current column

RMB 2,000,000

Reported government subsidy income / 2012 / upgrade infrastructure support current column

RMB 4,520,000

The year-end goodwill balance was CNY 472,512,501.24. The table records CNY 368,996,776.12 of additions, including CNY 176,839,725.90 for Tongxiang Jinshi Precious Metal Equipment, CNY 189,612,641.95 for Tongxiang Leishi Micropowder and CNY 2,544,408.27 for Hubei Hongjia Kaolin Mining. These businesses connect to glass-fiber equipment and material supply, but the goodwill amounts are acquisition-accounting balances rather than their annual sales, physical plant cost or cash consideration. Management attributes the increase to consideration above assessed fair values and says goodwill was allocated to relevant asset groups and tested without impairment. That reported test outcome is not a guarantee of future recoverability. The group cash note separately reports acquisition prices totaling CNY 755,087,910.00, cash paid of CNY 531,283,629.73 and acquired cash of CNY 118,975,335.47. Their subtraction gives the already-reported net acquisition cash of CNY 412,308,294.26; the price and cash totals have different scopes and are not silently substituted for one another. Earlier explanations of ownership purchases and profit compensation remain separate from these annual cash and goodwill measures.

Reported goodwill / 2012 / consolidated year end

RMB 472,512,501.24

Reported goodwill additions / 2012 / consolidated fy2012

RMB 368,996,776.12

Reported goodwill / 2012 / jinshi year end

RMB 176,839,725.9

Reported goodwill / 2012 / leishi year end

RMB 189,612,641.95

Reported goodwill / 2012 / hongjia year end

RMB 2,544,408.27

Reported acquisition price / 2012 / group cash note fy2012

RMB 755,087,910

Reported acquisition cash paid / 2012 / gross group cash note fy2012

RMB 531,283,629.73

Reported acquired cash / 2012 / group cash note fy2012

RMB 118,975,335.47

The management-expense note reports technical-development expense of CNY 158,818,281.49. The research table's original ten-thousand-yuan presentation converts to CNY 158,818,300, only CNY 18.51 higher than this detailed expense figure. This is consistent with the table's displayed precision and is not presented as a material economic discrepancy. The broader research paragraph uses a still less precise CNY 158,000,000 presentation, retained in the product-technology explanation. The cash-flow note separately reports research-development payments of CNY 105,314,396.48. Expense recognition and cash payments therefore should not be added as two research budgets, or treated as interchangeable evidence of unpaid research liabilities without an actual bridge. The detailed expense is one component of management expenses totaling CNY 485,659,782.96. These figures help explain the cost of technical development and the cash supporting it, without equating R&D spending with new-product revenue.

Reported technical development expense / 2012 / management expense note fy2012

RMB 158,818,281.49

Reported research cash payments / 2012 / cash note fy2012

RMB 105,314,396.48

Reported management expenses / 2012 / consolidated fy2012

RMB 485,659,782.96

The payable note says trade payables increased61.68% from the opening balance and attributes this to suppliers extending credit periods during a weak glass-fiber market. That is management's explanation of funding terms, not evidence that every balance was overdue. Year-end bills payable were CNY 81,945,611.40, all due in the following accounting period; the company says it changed settlement methods to use bills more often. Trade payables outstanding for more than one year totaled CNY 49,062,395.59, with payment not yet due under the contracts, and CNY 3,040,000.00 paid by the financial-statement approval date. Customer advances aged more than one year were CNY 37,596,777.78 because the goods had not yet shipped; CNY 2,450,000.00 was settled by the approval date. These aged subsets, total bills, year-end balances and subsequent settlements have different periods and perimeters. Customer advances do not themselves establish delivered sales, and related-party payable subsets already reported must not be added again to group totals.

Reported trade payable growth / 2012 / year end versus opening

61.68%

Bills payable / 2012 / year end due next period

RMB 81,945,611.4

Reported aged trade payables / 2012 / more than one year year end

RMB 49,062,395.59

Reported aged customer advances / 2012 / more than one year year end

RMB 37,596,777.78

Selling expenses totaled CNY 174,633,902.79, including CNY 133,477,126.10 of transport costs. Transport in this note is a selling expense, not an additional amount of the glass-fiber production-cost table. Income-tax expense was CNY 88,859,923.59, comprising current tax of CNY 92,099,344.13 and deferred tax expense of negative CNY 3,239,420.54. The source reconciliation identifies differing subsidiary rates, adjustments for earlier periods, unrecognized deductible losses and tax deductions among the reasons group expense differs from the simple statutory-rate amount. Those explain reported profit quality, but this note is not a statement of tax cash paid or a promise of permanent tax benefits. Separately, CNY 10,559,336.15 of borrowing costs were capitalized in FY2012, with reported capitalization rates of5.93%–6.43%. Capitalized borrowing costs enter qualifying asset cost rather than immediately appearing as financing expense; they are not an additional cash capital-expenditure amount to add again to the cash-flow totals.

Reported selling expenses / 2012 / consolidated fy2012

RMB 174,633,902.79

Reported selling transport expenses / 2012 / consolidated fy2012

RMB 133,477,126.1

Reported consolidated income-tax expense / 2012 / consolidated fy2012

RMB 88,859,923.59

Current corporate-income-tax expense / 2012 / consolidated fy2012

RMB 92,099,344.13

Deferred corporate-income-tax expense / 2012 / consolidated fy2012

RMB -3,239,420.54

Reported capitalized borrowing cost / 2012 / consolidated fy2012

RMB 10,559,336.15

The closing related-party schedule reports gross trade receivables of CNY 63,636,341.31 with CNY 5,852,280.88 of allowances, prepayments of CNY 14,780,231.56 and gross other receivables of CNY 20,477,402.32 with CNY 1,699,851.29 of allowances. On the payable side it reports trade payables of CNY 14,617,211.37, customer advances of CNY 3,330,582.43 and other payables of CNY 5,045,674.79. Each category is a subset of the corresponding group account, not an additional layer of assets, debt or revenue. Related sales, equipment advances, logistics settlements and other balances therefore should not be collapsed into one net funding number without a demonstrated right and basis to offset. The sales note identifies transactions with newly acquired Jinshi and Leishi before acquisition as related-party transactions. The change in group scope matters when comparing trading flows with year-end balances; it does not establish that all related trade continued outside the consolidated group or that every amount represents improper funds occupation. Relationships are recorded to the extent disclosed here, without extending research recursively to counterparties.

Reported related receivables gross / 2012 / trade year end

RMB 63,636,341.31

Reported related receivable allowance / 2012 / trade year end

RMB 5,852,280.88

Related-party supplier prepayments / 2012 / year end

RMB 14,780,231.56

Reported related receivables gross / 2012 / other year end

RMB 20,477,402.32

Reported related receivable allowance / 2012 / other year end

RMB 1,699,851.29

Reported related payables / 2012 / trade year end

RMB 14,617,211.37

Related customer advances and contract liabilities / 2012 / year end

RMB 3,330,582.43

Reported related payables / 2012 / other year end

RMB 5,045,674.79

Lianyungang Zhongfu Lianzhong Composite Materials Group is identified as a related customer. The leading-receivable table shows a closing gross balance of CNY 44,957,287.21, whereas the related-party receivable schedule reports CNY 46,255,657.21 for the same named company, before its separately listed allowance. The numerical difference is CNY 1,298,370. Both values and their source-table scopes are retained. The cited pages provide no demonstrated bridge between them, so neither amount is silently substituted for the other and the difference is not attributed to tax, a subsequent payment or allowance netting. This limits exact counterparty comparisons while still showing the disclosed trading and credit relationship. The two balances are alternative source representations, not two amounts to add together.

Reported counterparty receivable balance / 2012 / zhongfu lianzhong leading table year end

RMB 44,957,287.21

Reported counterparty receivable balance / 2012 / zhongfu lianzhong related table year end

RMB 46,255,657.21

The related-guarantee schedule records Zhenshi Holding Group as guarantor for borrowings of Jushi Group and the Jinshi and Leishi businesses. For one Jushi Group facility, the maximum guarantee is CNY 900,000,000, while the year-end underlying loans are CNY 500,000,000 and USD 24,200,000. The amounts falling due within one year under that facility are CNY 500,000,000 and USD 13,600,000, subsets of those loans. A separate dollar-denominated Jushi Group facility has a stated guarantee amount of USD 12,600,000 and year-end borrowing of USD 7,560,000. These are shareholder guarantees received by group companies, distinct from guarantees the listed company gives to subsidiaries. Facility limits, outstanding loans and current maturities must not be added as three layers of borrowing, and the original currencies are retained without an unsupported conversion or company-wide debt total. The disclosed support does not by itself prove continued facility availability, a guarantee payment or absence of refinancing risk.

Reported received guarantee limit / 2012 / zhenshi jushi facility one year end

RMB 900,000,000

Reported guaranteed borrowing balance / 2012 / zhenshi jushi facility one year end cny

RMB 500,000,000

Reported guaranteed borrowing balance / 2012 / zhenshi jushi facility one year end usd

24,200,000 USD

Reported guaranteed current borrowing / 2012 / zhenshi jushi facility one year end cny

RMB 500,000,000

Reported guaranteed current borrowing / 2012 / zhenshi jushi facility one year end usd

13,600,000 USD

Reported received guarantee limit / 2012 / zhenshi jushi facility two year end

12,600,000 USD

Reported guaranteed borrowing balance / 2012 / zhenshi jushi facility two year end usd

7,560,000 USD

Jushi Group transferred furnace and other production equipment to CMB Financial Leasing and leased it back. The contract describes an equipment transfer value and total rent of CNY 400,189,851.46, a first rent installment of CNY 100,189,851.46, a three-year term and quarterly rent payments. Their numerical difference is CNY 300,000,000, matching the financing-lease cash inflow separately reported for FY2012. A CNY 24,000,000 one-time lease deposit is already explained among other receivables; it is not an extra item of available cash. Jushi Chengdu provided an irrevocable joint-liability guarantee for the contract. The equipment remained in Jushi Group's possession without physical delivery, while ownership was treated as transferred when the lessor paid the transfer consideration. This is a financing arrangement using existing productive equipment, not newly commissioned manufacturing capacity. The group minimum-payment schedule totals CNY 276,213,294.80, compared with unrecognized financing charges of CNY 18,820,751.70. Subtraction gives CNY 257,392,543.10, reconciling to the already-described current and noncurrent lease principal. Minimum payments, outstanding principal, interest charges, deposit and guarantor support are different measures and should not be added as separate layers of debt.

Reported sale leaseback transfer value / 2012 / jushi cmb contract

RMB 400,189,851.46

Reported sale leaseback first rent / 2012 / jushi cmb contract

RMB 100,189,851.46

Reported lease financing cash inflow / 2012 / consolidated fy2012

RMB 300,000,000

Reported minimum lease payments / 2012 / year end future schedule

RMB 276,213,294.8

Reported unrecognized lease charges / 2012 / year end

RMB 18,820,751.7

The parent-company other-receivable note reports gross year-end balances of CNY 217,775,990.89 and allowances of CNY 16,010,235.30. These are not the group's consolidated other receivables. The related-party subset totals CNY 214,511,030.81, including CNY 140,511,030.81 from Beixin Technology Development, CNY 70,000,000.00 from Jushi Group and CNY 4,000,000.00 from the Beijing Luxin home-market subsidiary. Such parent-to-subsidiary balances help explain capital deployed through operating subsidiaries alongside the already-described parent cash flows. They must not be added again to consolidated external assets, or automatically labeled external sales, available cash or improper funds occupation. The note records distinct aging and impairment measures, but the selected figures do not establish repayment schedules or that every remaining balance is collectible. The named relationships are retained at the extent disclosed, without extending the study to counterparties.

Reported parent other receivables / 2012 / gross year end

RMB 217,775,990.89

Reported parent other receivable allowance / 2012 / year end

RMB 16,010,235.3

Reported parent related receivables / 2012 / subsidiary subset year end

RMB 214,511,030.81

Reported parent subsidiary receivable / 2012 / beixin year end

RMB 140,511,030.81

Reported parent subsidiary receivable / 2012 / jushi year end

RMB 70,000,000

Reported parent subsidiary receivable / 2012 / beijing luxin year end

RMB 4,000,000