China Jushi FY2013: Subsidiaries and invested companies

The subsidiary table describes Jushi Group as a 100%-owned glass-fiber producer and seller. In its original unit of CNY 10,000, the table gives revenue of 492,905.97 and net profit of 51,394.06, equivalent to CNY 4,929,059,700 and CNY 513,940,600 respectively. These are the manufacturing subsidiary figures, distinct from the listed company consolidated revenue and profit attributable to listed-company shareholders. Subsidiary profit cannot be added again to consolidated profit. The table supplies a legal-entity operating perimeter; it does not allocate the subsidiary revenue or earnings among individual furnaces, product grades or customer contracts.

Reported subsidiary ownership share / 2013 / jushi group

100%

Reported subsidiary revenue / 2013 / jushi group

RMB 4,929,059,700

Reported subsidiary net profit / 2013 / jushi group

RMB 513,940,600

The same FY2013 subsidiary table lists Beixin Technology Development as a building-materials seller in which the company held 97.22%. It was therefore not wholly owned at this reporting date. Its revenue was 28,361.46 and net profit 1,003.25 in the table unit of CNY 10,000, equivalent to CNY 283,614,600 and CNY 10,032,500. This trading subsidiary is distinct from the manufacturing subsidiary Jushi Group. Its revenue also differs from the CNY 301,154,896.76 reported for the main-business other-trading category; the cited table does not give a reconciliation between those two perimeters. Later ownership changes belong to later dated records and do not change this FY2013 ownership observation.

Reported subsidiary ownership share / 2013 / beixin technology development

97.22%

Reported subsidiary revenue / 2013 / beixin technology development

RMB 283,614,600

Reported subsidiary net profit / 2013 / beixin technology development

RMB 10,032,500

The parent-company investment-income note reports CNY 299,300,000 from cost-method investments, entirely attributed to the dividend declared by Jushi Group. The parent also records a CNY 1,158,322.60 equity-method loss from Nanjing Huafu, leaving total parent investment income of CNY 298,141,677.40. These parent-only amounts differ from consolidated investment income and from the manufacturing subsidiary net profit. The Jushi Group dividend is an internal group distribution and is not added to consolidated revenue or profit as another source of outside operating income. It is also distinct from dividends paid by the listed company to its own shareholders. The note states that there were no material restrictions on remitting investment income during the reporting period; this is an issuer statement about the disclosed investment-income perimeter, rather than a conclusion that all group cash was unrestricted.

Consolidated investment income or loss / 2013 / parent cost method jushi group

RMB 299,300,000

Consolidated investment income or loss / 2013 / parent equity method nanjing huafu

RMB -1,158,322.6

Consolidated investment income or loss / 2013 / parent total

RMB 298,141,677.4

The group acquired Hope Plus Limited's remaining 25% interests in Tongxiang Jinshi Precious Metal Equipment and Tongxiang Leishi Fine Powder, which were already controlled at 75%. The disclosed prices were CNY 119,882,500 and CNY 131,347,500. Jinshi makes platinum-rhodium equipment specifically for glass-fiber production; Leishi processes other nonmetallic minerals. These operating roles connect the transactions to manufacturing inputs, but the passages do not quantify realized procurement savings. The transaction overview names Jushi Group, while the commitment and capital-reserve notes identify Jushi Group Hong Kong as the implementing subsidiary. The August 16, 2013 announcement date is not used as an independently established closing date. Both entities are reported as 100% owned at year end. The purchases reduced consolidated capital reserves by CNY 121,023,460.52; this is an equity movement rather than a current operating expense. The combined transaction prices are CNY 251,230,000, whereas the consolidated cash-flow note reports CNY 248,269,610.20 for minority-interest purchases. The report does not bridge that difference, so prices and cash flow are preserved separately. This increases interests in existing consolidated subsidiaries rather than adding two newly consolidated businesses.

Reported minority interest price / 2013 / tongxiang jinshi remaining 25pct

RMB 119,882,500

Reported minority interest price / 2013 / tongxiang leishi remaining 25pct

RMB 131,347,500

Reported ownership percentage / 2013 / tongxiang jinshi closing

100 percent

Reported ownership percentage / 2013 / tongxiang leishi closing

100 percent

Reported minority purchase reserve decrease / 2013 / jinshi leishi minority acquisitions

RMB 121,023,460.52

Jianshi Juhong Mining, registered in Jianshi County, has underground mining and sales of refractory clay as its disclosed business scope. Jushi Group held 35% before the control transaction. It added CNY 1,050,000 of capital in May 2013 without changing that percentage, then in September added CNY 28,535,200 of capital and paid CNY 10,458,400 to buy part of other shareholders' interests. Ownership rose to 60%; Jianshi Juhong became a consolidated subsidiary, accounting for the net addition of one subsidiary to the consolidation perimeter. The previously held interest had a CNY 4,160,250.89 book value and CNY 30,621,484.28 fair value. Their difference, CNY 26,461,233.39, was a noncash remeasurement gain already included in investment income, not sales or mine output. The consolidated acquisition cash note separately records CNY 40,043,600 gross cash paid, CNY 22,737,482.20 of acquired cash and CNY 17,306,117.80 net cash paid. That note's amounts are retained at its consolidated acquisition scope; they are not a guessed bridge from individual capital increases or transaction valuations. A separate consolidated intangible-asset note says mining rights were not yet being mined and therefore had not been amortized. This does not establish commercial mining output, and the aggregate rights balance is not assigned entirely to Jianshi Juhong.

Reported ownership percentage / 2013 / jianshi juhong closing

60 percent

Reported mining capital increase / 2013 / jianshi juhong may2013

RMB 1,050,000

Reported mining capital increase / 2013 / jianshi juhong september2013

RMB 28,535,200

Reported mining share purchase / 2013 / jianshi juhong september2013

RMB 10,458,400

Reported acquisition cash gross / 2013 / consolidated acquisition note

RMB 40,043,600

Reported acquired cash / 2013 / consolidated acquisition note

RMB 22,737,482.2

Reported acquisition cash net / 2013 / consolidated acquisition note

RMB 17,306,117.8

On December 27, 2013, the company sold its 29% interest in Shenzhen Zhujiang Jun'an Cement Products through a publicly listed transfer. The management table gives a CNY 69,567,200 transaction price and CNY 46,553,200 disposal gain, using its rounded reporting unit. It describes a nonrelated transaction and completed transfer of the relevant ownership and obligations. This divestment is distinct from glass-fiber product revenue and recurring manufacturing profit. The financial investment-income disposal line also includes the noncash Jianshi Juhong remeasurement gain, so its combined amount must not be read entirely as cement-sale earnings. A transaction price is not automatically proof of the amount or date of cash collected.

Reported disposal interest percentage / 2013 / shenzhen cement interest

29 percent

Reported disposal price / 2013 / shenzhen cement interest

RMB 69,567,200

Reported disposal gain / 2013 / shenzhen cement management rounded

RMB 46,553,200