China Jushi FY2012: Projects and construction progress

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%