China Jushi FY2014: Markets, customers and suppliers

Consolidated revenue was CNY 6,268,153,539.62 and operating cost CNY 4,050,327,752.77. The main-business table gives glass-fiber yarn and products revenue of CNY 6,102,609,685.77, cost of CNY 3,946,978,080.64 and a 35.32% gross margin, up 3.42 percentage points. Other main-business revenue was CNY 107,017,423.25 and cost CNY 84,160,225.73. Management labels the glass-fiber and other shares as 98.28% and 1.72% of total operating revenue. Those printed percentages fit the sum of the two main-business rows rather than the larger consolidated revenue; the original label and ratios are retained with this scope comparison. Domestic main-business revenue was CNY 3,205,677,499.51 and foreign revenue CNY 3,003,949,609.51, producing the same main-business total. The foreign share of 48.38% therefore is not a percentage of every consolidated sale. Management attributes revenue growth primarily to higher product sales volumes and recovery in wind-energy and thermoplastic demand, with shortages for some products, regions and seasons. It gives no actual production or sales tonnage here, so the table cannot establish realized price per tonne, factory utilization or how much revenue came from E7 alone.

Revenue / 2014 / consolidated

RMB 6,268,153,539.62

Cost of sales / 2014 / consolidated

RMB 4,050,327,752.77

Revenue / 2014 / glass fiber products

RMB 6,102,609,685.77

Cost of sales / 2014 / glass fiber products

RMB 3,946,978,080.64

Gross margin / 2014 / glass fiber products

35.32 percent

Revenue / 2014 / other main business

RMB 107,017,423.25

Cost of sales / 2014 / other main business

RMB 84,160,225.73

Revenue / 2014 / domestic main business

RMB 3,205,677,499.51

Revenue / 2014 / overseas main business

RMB 3,003,949,609.51

The five largest customers accounted for CNY 767,877,464.14, reported as 12.25% of annual sales. The disclosed percentage is consistent after rounding with consolidated revenue, while main-business revenue has a different denominator. The report does not identify those five customers or attribute their purchases to individual formulations. Purchases from the five largest suppliers were CNY 907,861,050.48, or 24.14% of purchases, a procurement measure rather than sales or year-end payables. Materials for glass-fiber yarn and products were CNY 1,134,091,770.78, labeled 28.00% of total cost. That ratio is consistent with consolidated operating cost rather than the narrower glass-fiber cost row. Management links cost increases to raw materials and labor, selling expenses to transport and employee costs, and financing expenses to interest and foreign-exchange losses. Customer sales, supplier purchases, material consumption and closing balances require different readings; no named relationship or complete supply-risk protection is inferred from these totals.

Top five customer sales / 2014 / source annual sales label top five

RMB 767,877,464.14

Reported top five customer share / 2014 / source annual sales label top five

12.25 percent

Top-five supplier purchases / 2014 / consolidated top five

RMB 907,861,050.48

Top five suppliers share of purchases / 2014 / consolidated top five

24.14 percent

Reported material cost / 2014 / glass fiber products

RMB 1,134,091,770.78

Reported material cost share / 2014 / source total cost label

28 percent

The five largest closing trade-receivable debtors owed CNY 227,121,749.03, reported as 12.45% of gross trade receivables, with allowances of CNY 6,692,961.27. Two names printed in English are AMIANTIT FIBERGLASS INDUSTRIES LTD., with CNY 93,445,121.60 outstanding and an allowance of CNY 934,451.22, and FUTURE PIPE INDUSTRIES LLC, AUH, with CNY 27,896,972.22 outstanding and an allowance of CNY 278,969.72. The table labels them third parties. These are disclosed year-end debtor relationships, not a list of new orders, delivered tonnes, exclusivity agreements or independently established customer status today. The annual-sales table separately reports an unnamed top five with CNY 767,877,464.14 and 12.25% of annual sales. Its denominator and measurement period differ. The named closing debtors must not be substituted for those anonymous annual customers, and their balances cannot be assigned to a particular glass grade or project. Relationships remain limited to the issuer's disclosure; counterparties are not researched onward.

Top five debtor gross receivables / 2014 / consolidated top five closing

RMB 227,121,749.03

Top five debtor gross share / 2014 / consolidated top five closing

12.45 percent

Top five debtor allowance / 2014 / consolidated top five closing

RMB 6,692,961.27

Trade receivables before allowance / 2014 / amiantit disclosed closing debtor

RMB 93,445,121.6

Trade receivable expected-credit-loss allowance / 2014 / amiantit disclosed closing debtor

RMB 934,451.22

Trade receivables before allowance / 2014 / future pipe auh disclosed closing debtor

RMB 27,896,972.22

Trade receivable expected-credit-loss allowance / 2014 / future pipe auh disclosed closing debtor

RMB 278,969.72

Prepayments ended at CNY 206,514,724.56, compared with CNY 288,013,689.79 in the opening column. The five largest prepaid recipients accounted for CNY 92,036,574.57 and a reported 44.57%. Their names identify refractory materials, calcium products, electricity supply, power engineering and warehouse equipment counterparties. The table does not allocate every prepayment to a named plant or project, establish delivered quantities or measure the annual cost of those inputs. Separately, the other-receivable table includes a CNY 39,000,000.00 guarantee deposit with CMB Financial Leasing, a CNY 6,000,000.00 deposit with Bank of Communications Financial Leasing and a CNY 2,259,432.41 natural-gas deposit with CITY GAS. The first is explicitly described as a guarantee deposit without an allowance in the individual-assessment table; a blank provision cell is not staged as numeric zero. These balances describe funds tied to procurement, leasing or service arrangements. They are not all current material expense, cash usable for debt repayment or additional guarantee liabilities. Their named counterparties are retained without onward investigation.

Prepayments / 2014 / consolidated

RMB 206,514,724.56

Top-five prepayment balances / 2014 / consolidated top five closing

RMB 92,036,574.57

Top-five share of supplier prepayments / 2014 / consolidated top five closing

44.57 percent

Security deposits receivable / 2014 / cmb financial leasing

RMB 39,000,000

Other deposits receivable / 2014 / bocom financial leasing

RMB 6,000,000

Other deposits receivable / 2014 / city gas

RMB 2,259,432.41

Related-party operating sales include inventory goods sold to Zhenshi Holding Group of CNY 344,395,988.26, compared with CNY 173,705,212.16 in the prior-year column. Separately, raw-material sales to that group were CNY 8,145,979.58, compared with CNY 4,054,863.48. Inventory-goods sales to CNBM International Trading were CNY 55,671,988.25 versus CNY 34,222,449.52, while the distinct CNBM Group Import and Export company accounted for CNY 25,916,018.19 versus CNY 107,541,348.11. Lianyungang Zhongfu Lianzhong accounted for CNY 26,233,533.89 versus CNY 31,221,158.50 of inventory-goods sales. CNBM means China National Building Material; English counterparty labels here identify the issuer's disclosed entries. These are annual transaction categories, not cash receipts, confirmed new orders or proof of a particular fiber grade. Their disclosure establishes named related operating relationships, but does not identify the members of the separate anonymous annual top-five customer table. Closing receivables are examined separately, and no counterparty's own business network is researched onward.

Related goods sales / 2014 / zhenshi holding

RMB 344,395,988.26

Related goods sales / 2013 / zhenshi holding prior comparison

RMB 173,705,212.16

Related-party material sales / 2014 / zhenshi holding

RMB 8,145,979.58

Related goods sales / 2014 / cnbm international trading

RMB 55,671,988.25

Related goods sales / 2014 / cnbm group import export

RMB 25,916,018.19

Related goods sales / 2013 / cnbm group import export prior comparison

RMB 107,541,348.11

Related goods sales / 2014 / lianyungang zhongfu lianzhong

RMB 26,233,533.89

The related procurement note separates transport services, equipment and materials. Product freight from Zhenshi Group Zhejiang Yushi was CNY 152,046,870.70, compared with CNY 83,291,311.50; material freight was CNY 17,583,810.48 and equipment freight CNY 1,074,983.35. Jiujiang Yushi freight was CNY 33,386,548.01 versus CNY 7,352,444.94, and Shanghai Tianshi freight was CNY 22,593,114.99 versus CNY 25,855,947.75. Equipment purchases from Tongxiang Huarui were CNY 10,409,943.59 versus CNY 29,066,931.98; its technical and procurement services were a separate CNY 24,248,411.39. Raw materials from Zhejiang Songyang Mingshi were CNY 20,239,097.71 versus CNY 20,113,847.58. These disclosed links show where related logistics, equipment and input suppliers enter the operating chain. The amounts are annual procurement/service transactions, not a complete group freight-cost total, all cash already paid or closing creditor balances. Equipment procurement and service fees also cannot be added indiscriminately to a named project's budget. Routine meeting, checkup and travel entries are not expanded into stand-alone operating narratives without a disclosed material mechanism. The analysis stops at the issuer's relationships.

Related procurement and service transactions / 2014 / zhejiang yushi product freight

RMB 152,046,870.7

Related procurement and service transactions / 2014 / zhejiang yushi material freight

RMB 17,583,810.48

Related procurement and service transactions / 2014 / zhejiang yushi equipment freight

RMB 1,074,983.35

Related procurement and service transactions / 2014 / jiujiang yushi freight

RMB 33,386,548.01

Related procurement and service transactions / 2014 / shanghai tianshi freight

RMB 22,593,114.99

Related procurement and service transactions / 2014 / tongxiang huarui equipment

RMB 10,409,943.59

Related procurement and service transactions / 2014 / tongxiang huarui technical procurement services

RMB 24,248,411.39

Related procurement and service transactions / 2014 / songyang mingshi raw materials

RMB 20,239,097.71

The FY2014 report describes a change in European Union market access for specified glass-fiber products exported from China. Jushi Group received the final investigation notice on 23 December 2014. The issuer reports a combined anti-dumping and anti-subsidy rate of 24.8%, with a stated collection period from 24 December 2014 to March 2016. It says the earlier 13.8% anti-dumping charge, applied since March 2011, would no longer be levied separately; the two percentages are not added together. Covered products include chopped strands no longer than 50 mm, specified glass-fiber rovings and glass-fiber mats excluding glass-wool mats. The description excludes impregnated/coated rovings with combustible content above 3%. The disclosed origin, destination and product boundaries matter for the route to European customers: this is not a charge on every worldwide group sale or a single rate applied to every glass grade. The report does not quantify affected sales, duty cash paid, customer pass-through or the resulting margin change. Production and trading entities outside mainland China cannot be assumed exempt solely from their location. These are the issuer's dated disclosure and stated period, not a determination of tariff treatment today.

Disclosed combined trade-duty rate / 2014 / jushi group china origin eu covered products

24.8%

The FY2014 marketing account reports overseas sales-company presence in 14 countries and regions. The broader organization account calls these overseas subsidiaries and separately reports two exclusive distributors in the United Kingdom and Germany. These are different routes to market; 14 jurisdictions do not mean 14 manufacturing plants or exactly one company in each jurisdiction. Management also claims long-term relationships with customers across more than 100 countries and regions. That geographic reach is not a count of named customers, product orders or revenue; the report does not identify every claimed large multinational customer. The subsidiary-role and customer-concentration accounts provide separate, more specific evidence. In discussing trade barriers, management expects a large part of demand in investigating countries and regions to be supplied directly from Egypt, reducing the adverse effect. The first Egyptian line's reported operation and the separately prepared second line provide context for that plan. The report does not quantify a customer-switching volume, duty reduction or realized margin improvement. Management's mitigation expectation does not itself establish a customs exemption for every overseas product or shipment; the disclosed EU origin-and-product duty scope remains separate.

Reported overseas sales jurisdictions / 2014 / issuer overseas sales presence

14 countries/regions

Reported exclusive distributors / 2014 / issuer uk germany disclosed network

2 distributors