China Jushi FY2012: Markets, customers and suppliers

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

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