China Jushi FY2014: Subsidiaries and invested companies

Jushi Group was wholly owned and produced and sold glass-fiber products. The major-company table reports revenue of 616,984.24 ten-thousand CNY and net profit of 63,063.47 ten-thousand CNY for that company. These are named-company amounts rather than figures to add to consolidated revenue or allocate to particular factories. They do not show dividends received by the listed parent. Manufacturing-company accounts, consolidated accounts and the geographic sales table have different perimeters. The financial notes distinguish the listed parent's investment income, dividend receivables and investment-income cash from consolidated manufacturing earnings. A named company's reported revenue and profit therefore do not measure the amount paid to the parent or identify which factory or product generated it.

Beixin Technology Development was wholly owned and sold building materials, an activity distinct from glass-fiber manufacturing. Its named-company revenue was 9,831.11 ten-thousand CNY and net profit 1,292.92 ten-thousand CNY in the major-company table. These totals cannot be added again to consolidated accounts, treated as glass-fiber factory earnings or assumed to be cash dividends. The different role helps explain why trading and glass-fiber product figures need separate reporting boundaries. No further counterparty investigation is required.

Revenue / 2014 / beixin technology reported company

RMB 98,311,100

Net profit / 2014 / beixin technology reported company

RMB 12,929,200

The issuer purchased the remaining 2.78% of Beixin Technology Development for CNY 2,128,832.26 in 2014, bringing its interest to 100%. The important-matters table dates the purchase to June; the financial note instead says April. The exact completion month remains unresolved. The seller is described as a related Beixin group company, with a different word order in the Chinese legal name between the acquisition and related-party tables; those names are retained in the evidence rather than silently standardized. The acquisition table reports transferred ownership rights and debt obligations and a valuation-based price. The acquired share of net assets was CNY 1,816,680.15. The capital-reserve table reports a decrease of CNY 312,152.11, consistent with the price exceeding that share of net assets. This is an equity transaction for a remaining minority interest, rather than a newly acquired entire business or a factory investment. Purchase-period profit contributed by the acquired interest was CNY 339,121.33, with a printed 0.06% of pretax profit. It differs from the trading subsidiary's full-year net profit of 1,292.92 ten-thousand CNY. Both the date conflict and the full-year versus purchase-period perimeter remain explicit; no research is extended into the seller.

Equity acquisition price / 2014 / beixin remaining interest

RMB 2,128,832.26

Interest purchased in the period / 2014 / beixin remaining interest

2.78 percent

Acquired share of net assets / 2014 / beixin remaining interest

RMB 1,816,680.15

In June 2014 Jushi Group Hong Kong purchased the remaining 49% of the France subsidiary for CNY 2,921,320.80, bringing ownership to 100%. The financial note reports an acquired share of net assets of CNY 3,293,302.17, exceeding the purchase price by CNY 371,981.37. The capital-reserve table records that amount as an increase, while the accompanying narrative gives CNY 371,981.36, a one-cent source discrepancy. Neither amount is treated as operating income or counted twice. The cash-flow note separately reports CNY 5,050,118.97 paid to acquire subsidiary minority interests. The two purchase prices add to 34.09 CNY more than that cash figure; the report provides no complete reconciliation here. The transaction prices are not silently equated with the cash-flow amount. The report states that the consolidation scope did not change during 2014. A larger ownership share in an already consolidated overseas subsidiary therefore does not establish a new manufacturing facility, additional production capacity or a new business entering the consolidated group.

Equity acquisition price / 2014 / france remaining interest

RMB 2,921,320.8

Interest purchased in the period / 2014 / france remaining interest

49 percent

Acquired share of net assets / 2014 / france remaining interest

RMB 3,293,302.17

The ownership note describes an operating chain extending beyond finished glass fiber. Jushi Group, directly held by the listed company, manufactures and sells glass fiber and its products; the subsequent table identifies the following interests as indirect holdings. Jushi Chengdu and Panding are production businesses. Jiujiang Calcium processes and sells calcium oxide, calcium carbonate and fluorspar, while Dean Linda's disclosed scope covers limestone and warehousing of other nonmetallic mineral products. Zhejiang Beite makes refractory bricks for glass furnaces; Tongxiang Jinshi produces specialized platinum-rhodium equipment for glass-fiber manufacture; Leishi processes other nonmetallic minerals. Hubei Hongjia's scope includes kaolin, peat and refractory-material processing and sales, while Jianshi Juhong mines and sells refractory clay underground. These descriptions help readers locate material preparation and furnace-related resources within the group. They are disclosed corporate business scopes, not measurements of annual output, internal supply shares, reserves or mine capacity. City-level operating and registration information does not establish a physical factory address, coordinates or a separate production line. Names are English renderings of the issuer's Chinese subsidiary list, and no additional investigation of their customers or suppliers is undertaken.

The FY2014 subsidiary list distinguishes production from international selling and import-export activity. Jushi Egypt in Suez has a production and sales scope covering glass fiber and related materials and equipment. South Africa Huaxia Composites also has a production and sales scope. By contrast, the California-based Jushi US entity is described as selling glass fiber and trading related machinery and chemical inputs. That California entry is not evidence of a South Carolina manufacturing plant in 2014. The Hong Kong, Paris, Tokyo and Milan entries similarly describe sales and trade; the Toronto, Seoul, Mumbai, Madrid, Switzerland and Singapore entries provide additional distribution and trade presence. The separate Johannesburg-based South African industrial entity is a sales and trade business, distinct from Huaxia Composites. These are indirect group holdings in the table, with ownership percentages varying by entity rather than all being wholly owned. Beixin Technology in Shenzhen is domestic and import-export trading, while the Beijing property subsidiary leases premises. A subsidiary's permitted scope or operating city does not establish its production volume, market share, utilization, sales to a particular customer or exact plant location. The disclosed network explains routes to markets without treating every office as a factory.

The organization note identifies two second-tier subsidiaries, Jushi Group and Beixin Technology Development, and 30 third-tier or lower subsidiaries. Consolidation is based on control and includes the issuer and controlled subsidiaries; the note states that the consolidation scope did not change in FY2014. These entity counts are not furnace counts or a measure of manufacturing capacity. Purchases of remaining minority interests can change ownership within an already consolidated entity without adding a new factory or business perimeter. The accounts use Chinese Accounting Standards for Business Enterprises, a calendar reporting year and renminbi presentation. The board authorized these statements on 16 March 2015. The preparation note reports no matter casting significant doubt on going concern within 12 months of the reporting date; that dated issuer statement does not promise future funding or remove the refinancing exposures already described. Earlier share-issue and capital-bonus history supplies ownership background, without treating a historical capital change as FY2014 operating growth.

Subsidiary tier count / 2014 / second tier

2 entities

Subsidiary tier count / 2014 / third tier and lower

30 entities