China Jushi | FY2015 business review

Glass fiber and related products generated RMB 6.911129231 billion, or 97.96% of total revenue in 2015. Bulk materials for the Tongxiang, Chengdu, Jiujiang and Egypt bases were bought through central negotiation with separate subsidiary contracts. Production was primarily guided by sales, using a flexible mix of pull and push methods. Domestic sales mainly used direct sales, while foreign sales combined overseas trading subsidiaries, distributors and direct sales. This explains the operating system behind the revenue figures.

The filing states that the company and stock short name changed from China Fiberglass to China Jushi from 18 March 2015. It also describes faster centralisation of sales, finance and purchasing and exploration of common scheduling, technology and management. The effective stock-name date is kept distinct from the legal-registration date reported in the prior filing. Both names belong to the same listed code, while subsidiary and factory identities remain separately recorded.

The 2015 report describes a concentrated glass-fiber industry with substantial technology, capital and policy barriers to entry. It says the six largest global producers controlled approximately 75% of capacity, without naming all six or supplying an independently checked market-share series. Citing the China Fiberglass Industry Association, it reports Chinese glass-fiber yarn output of 3.23 million tonnes in 2015 and a 94.27% share of national yarn output produced through tank-furnace drawing. The report separately puts China above half of global glass-fiber capacity and gives preceding three-year capacity growth rates of 6.65% in China and 1.70% worldwide. Output, capacity, production method and growth rates measure different things. These historical industry figures are not Jushi output, company market share, factory utilization or present-day industry estimates. Management viewed large furnaces, pure-oxygen combustion, automated material handling and improved glass formulations as ways to improve efficiency and product performance. Its expectation that stronger producers would benefit from consolidation is an outlook, rather than a completed acquisition or guaranteed pricing advantage.

The company developed a fourth-generation high-modulus, high-strength E7 formulation and worked on E6S in response to wind-energy demand. It also reports research on sizing formulations, unsaturated polyester resin and replacement of basic raw materials. These passages describe different development activities and intended performance-and-cost improvements. They do not establish that every new formulation had replaced its predecessor or achieved a stated volume of sales by year-end.

Alongside E6 and E7 high-performance glass fiber, the report names Compofil as a high-performance composite-fiber material and part of the company's proprietary technology and brand portfolio. Management describes improved physical properties, corrosion resistance and energy or environmental characteristics compared with traditional E-glass. The annual report does not provide a Compofil formulation, fiber-resin composition, numerical specification, grade-level production volume, customer identity or separate revenue. It therefore supports recording the named technology and management's performance claim, while leaving its detailed specification and commercialization scale unresolved. Generic industry discussion of high strength, high modulus, low dielectric performance, heat resistance and insulation describes development directions; it does not demonstrate that every Jushi grade already delivered every listed property in 2015.

The R&D table reports RMB 202.2956 million, all expensed, equal to 2.87% of revenue, with 885 research personnel. Patent authorisations are given as 77 in the capabilities section and 72 in the annual-work discussion. The report does not explicitly reconcile these counts in the cited passages, so no single harmonised annual number is inferred. Research personnel, patent authorisations and commercial product deliveries remain separate measures.

The accounting policy identifies platinum and rhodium bushings as important assets used in the final drawing of glass fiber. Cleaning and reprocessing cause metal losses that are charged to product cost. They are recorded as precious-metal fixed assets but do not receive ordinary fixed-asset depreciation under the stated policy. The fixed-asset note reports a precious-metal carrying amount of CNY 5,695,894,373.80 and annual consumption of CNY 285,175,578.69. These are manufacturing assets and costs, rather than an investment portfolio. Ordinary fixed-asset depreciation of CNY 624,284,251.44 is separately stated. For construction in progress, the policy calls for transfer when assets are ready for intended use; accounting transfer alone does not establish sustained output at nameplate capacity. The important-project transfer table is a subset of the wider asset movement and must not be treated as a complete operational commissioning ledger.

Precious-metal production assets carrying value / 2015 / consolidated

RMB 5,695,894,373.8

Precious-metal production consumption / 2015 / consolidated

RMB 285,175,578.69

Ordinary fixed-asset depreciation / 2015 / consolidated

RMB 624,284,251.44

Management says glass-fiber product research was intended to provide new materials for megawatt-scale wind-turbine blades, high-pressure pipes for desalination and long-distance transport, offshore structures and hybrid vehicles. These uses explain why lighter, stronger and more durable materials were being pursued. They are stated research objectives, not disclosed orders, named customers or proof of qualification for every application. The report also describes developing another E7 formulation generation, researching E6S for wind-related needs and testing sizing, resin and raw-material changes. Those stages are distinct from complete replacement of existing products. The separate research account retains the expense and staffing measures and the original 77-versus-72 patent-authorization count difference. Neither spending nor patent counts alone establish successful commercialization or an independently verified competitive lead.

Revenue was RMB 7.0547873 billion. Management attributed growth to higher volumes and selling prices. Foreign sales were 48.51% of main-business sales, and the top five customers generated RMB 853.2160 million, or 12.24% of annual sales. These disclosures provide the commercial context for the portfolio and capacity work. The report does not assign the whole revenue increase to E7 or imply that each overseas sales subsidiary owned a manufacturing plant.

Consolidated revenue was CNY 7,054,787,299.99 and operating cost was CNY 4,211,593,626.06. The glass-fiber-and-products row reports revenue of CNY 6,911,129,231.43, cost of CNY 4,136,309,069.45 and a 40.15% gross margin, up 4.83 percentage points. Management attributes revenue growth to both higher sales volume and selling prices, and describes recovery in wind-energy and thermoplastic demand with shortages in some products, regions or seasons. The management table gives no actual production or sales tonnage, so it does not establish realized price per tonne or full factory utilization. Domestic main-business revenue was CNY 3,589,294,315.99 at a 39.85% margin; overseas main-business revenue was CNY 3,381,217,807.83 at a 40.56% margin. These regional rows have a broader total than the glass-fiber product row and a smaller total than consolidated revenue. The reported 48.51% overseas share concerns main-business sales. It cannot be treated as the share of all consolidated sales or assigned to one overseas manufacturing site. The different perimeters need comparison with the financial revenue notes.

Revenue / 2015 / consolidated

RMB 7,054,787,299.99

Cost of sales / 2015 / consolidated

RMB 4,211,593,626.06

Revenue / 2015 / glass fiber products

RMB 6,911,129,231.43

Cost of sales / 2015 / glass fiber products

RMB 4,136,309,069.45

Gross margin / 2015 / glass fiber products

40.15 percent

Revenue / 2015 / domestic main business

RMB 3,589,294,315.99

Cost of sales / 2015 / domestic main business

RMB 2,159,083,733.43

Gross margin / 2015 / domestic main business

39.85 percent

Revenue / 2015 / overseas main business

RMB 3,381,217,807.83

Cost of sales / 2015 / overseas main business

RMB 2,009,856,166.58

Gross margin / 2015 / overseas main business

40.56 percent

Closing inventory was CNY 1,240,650,949.98 gross and CNY 1,240,591,005.21 net after a CNY 59,944.77 allowance. Finished goods accounted for CNY 908,546,833.07 gross, alongside raw materials of CNY 291,712,421.24 and dispatched goods of CNY 14,630,244.61. A small reported allowance is an accounting measurement, not proof that every product was already sold or that all capacity was utilized. Advances from customers totaled CNY 386,899,101.05, comprising goods advances of CNY 386,367,548.21 and other advances of CNY 531,552.84. Amounts awaiting dispatch are not recognized sales or a complete firm-order backlog. Supplier prepayments were CNY 163,124,875.92; the largest five represented 69.51% of that balance. Prepayments measure funding before receipt, not material already consumed. Separately, bank treasury products were carried at CNY 1,500,057,014.54 in other current assets; this accounting balance differs from their CNY 1,500,000,000 contracted principal and is not all immediately available cash.

Inventory before allowance / 2015 / consolidated

RMB 1,240,650,949.98

Inventory after allowance / 2015 / consolidated

RMB 1,240,591,005.21

Gross finished goods / 2015 / consolidated

RMB 908,546,833.07

Customer advances received / 2015 / consolidated

RMB 386,899,101.05

Supplier prepayments closing balance / 2015 / consolidated

RMB 163,124,875.92

Selling expenses include CNY 233,042,362.29 of transport costs, compared with CNY 159,282,780.76 in the previous year. The administrative expense note includes CNY 202,295,583.70 of technical-development expense, compared with CNY 179,305,336.22 previously. These expense categories help identify distribution and development demands, but the annual report does not allocate them to individual factories, products or projects in these tables. Technical-development expense is not automatically capitalized research, the value of new technology, or the same measure as the separately disclosed number of research personnel. Related-party logistics transactions use a different disclosure population and are not a complete reconciliation of selling transport expense.

Selling transport expense / 2015 / consolidated

RMB 233,042,362.29

Technical-development expense / 2015 / consolidated

RMB 202,295,583.7

The employee-benefit liability note records CNY 692,730,153.83 of additions during 2015, comprising CNY 641,317,222.53 of short-term remuneration and CNY 51,412,931.30 of defined-contribution postemployment benefits. The same liability schedule shows reductions of CNY 710,862,761.33 and a CNY 8,710,948.01 closing balance. Separately, the cash-flow statement reports CNY 663,986,848.32 paid to and for employees. Accrual additions, liability reductions, cash-flow classification and reported headcount have different scopes and should not be used as interchangeable cost or per-worker productivity measures. The production and technical headcounts already disclosed help describe the labor structure. Routine social-insurance, housing-fund and training-fund breakdowns remain in the source archive; they do not require separate reader sections absent a specific change affecting production, cost or shareholder interests.

Employee-benefit liability additions / 2015 / consolidated

RMB 692,730,153.83

Cash paid to and for employees / 2015 / consolidated

RMB 663,986,848.32

Sales to the top five customers totaled CNY 853,216,041.30, reported as 12.24% of annual sales. That printed percentage is consistent after rounding with the combined domestic and overseas main-business revenue, while dividing by consolidated revenue gives a different percentage. The filing does not provide an explicit reconciliation of the denominator; its label and percentage are retained rather than silently relabeled. It does not identify those customers or disclose orders for particular products. The top five suppliers supplied CNY 1,525,002,129.50, or 36.01% of annual purchases. This measures procurement concentration, not customer sales, supplier prepayments or year-end payables. Materials for glass fiber and products were CNY 1,104,701,008.12, labeled 26.23% of total cost. That ratio is consistent with consolidated operating cost rather than the narrower glass-fiber cost row. Central negotiation with separate base contracts and long-term purchasing agreements were intended to control input costs; the concentration figures and procurement arrangements do not establish that supply or price risk disappeared.

Top five customer sales / 2015 / source annual sales label top five

RMB 853,216,041.3

Reported top five customer share / 2015 / source annual sales label top five

12.24 percent

Top-five supplier purchases / 2015 / consolidated top five

RMB 1,525,002,129.5

Top five suppliers share of purchases / 2015 / consolidated top five

36.01 percent

Reported material cost / 2015 / glass fiber products

RMB 1,104,701,008.12

Reported material cost share / 2015 / source total cost label

26.23 percent

The group operated four manufacturing bases at Tongxiang, Chengdu, Jiujiang and Egypt. Domestic sales mainly used direct selling with limited agents, while foreign sales combined trading subsidiaries, distributors and direct selling. The report describes overseas sales companies in fourteen countries and regions, exclusive distributors in Germany and the United Kingdom, and customer relationships in more than one hundred countries and regions. These are issuer descriptions of marketing reach, not fourteen production bases or a verified named customer list. The company separately lists management-system certifications, product qualifications from marine classification and other bodies, and chemical-compliance testing. Their complete product, application and validity scopes are not supplied, so a list or count cannot establish approval for all glass-fiber grades. Sales-guided production, dedicated lines and customized production for key customers describe how the company sought to adjust product mix to demand. They do not establish disclosed contracts, delivered volumes or sales of every developmental formulation. E7 and E6S development and the patent-count difference remain in the separate technology account.

The company issued 232,896,652 shares at CNY 20.61 each in a private placement. Gross proceeds were CNY 4,799,999,997.72 and net proceeds after issuance costs were CNY 4,743,445,378.38; the report states that the funds arrived on 28 December 2015. This receipt date is separate from the January 2016 registration date described in the following annual report, and does not represent a second receipt of the same financing. Management intended the funding to support new construction and refurbishment and improve the balance-sheet structure. Year-end monetary funds were CNY 3,290,275,794.34, with management attributing their increase to the concentrated placement receipts. The business overview separately states that CNY 1.5 billion of temporarily idle proceeds was put into treasury products within other current assets, which totaled CNY 1,720,044,869.02. Monetary funds, treasury-product balances and net proceeds are different measures; they cannot be added to invent available construction cash. Issuing new shares changes the ownership denominator even though the cash supported the same operating business. Detailed restrictions, treasury product terms and financing cash flows remain to be compared with the financial notes.

Shares issued in private placement / 2015 / private placement

232,896,652 shares

Private-placement issue price / 2015 / private placement

20.61 CNY per share

Gross placement proceeds / 2015 / private placement

RMB 4,799,999,997.72

Net placement proceeds / 2015 / private placement

RMB 4,743,445,378.38

Consolidated monetary funds / 2015 / consolidated

RMB 3,290,275,794.34

Other current assets / 2015 / consolidated

RMB 1,720,044,869.02

Short-term borrowings fell to CNY 4,345,743,859.33, and the current portion of non-current liabilities fell to CNY 388,972,036.46. Management attributes the changes to repayment of matured debt and concentrated settlement of long-term loans coming due within one year. Other current liabilities increased to CNY 1,900,000,000.00, which the adjacent explanation links to short-term debt securities. Long-term borrowing increased to CNY 2,857,393,685.14, and long-term payables to CNY 364,395,990.22, with the latter attributed to additional finance leases. These categories show changes in funding instruments and maturity classification; the fall in two categories does not establish that every form of funding or refinancing exposure declined. Equipment purchases also increased accounts payable, and more bank acceptance bills increased notes payable. Those operating and financing balances are not additional construction cash expenditure. Loan currencies, contractual maturity, security and lease terms still require the financial notes.

Short-term borrowings / 2015 / consolidated

RMB 4,345,743,859.33

Current portions of non-current liabilities / 2015 / consolidated

RMB 388,972,036.46

Other current liabilities / 2015 / consolidated

RMB 1,900,000,000

Non-current long-term borrowings after current-portion deduction / 2015 / consolidated

RMB 2,857,393,685.14

Long-term payables / 2015 / consolidated

RMB 364,395,990.22

Guarantees to subsidiaries incurred during the year totaled CNY 11,336,600,000.00, while the outstanding year-end balance was CNY 6,007,600,000.00, or 61.81% of reported net assets. The disclosure separately assigns zero to outstanding guarantees outside the subsidiary perimeter and to guarantees for shareholders, actual controllers and their related parties. Those bounded categories do not mean that all guarantees were zero. Guarantees involving recipients with a debt-to-asset ratio above 70% were CNY 80,170,000.00; the amount above 50% of net assets was CNY 1,148,201,516.79. The source totals the stated categories at CNY 1,228,371,516.79. Annual incurred amounts and outstanding exposure are different measures and must not be added as a new debt principal. Nor is the guarantee balance an already paid cash outflow or evidence that a recipient defaulted. The note says all company guarantees were for subsidiaries, without allocating every balance to a named furnace or project.

Guarantees incurred / 2015 / subsidiaries

RMB 11,336,600,000

Outstanding subsidiary guarantees / 2015 / subsidiaries

RMB 6,007,600,000

Guarantees to net assets / 2015 / report defined

61.81 percent

Guarantees for recipients above70percentleverage / 2015 / report defined

RMB 80,170,000

Guarantees above half net assets / 2015 / report defined

RMB 1,148,201,516.79

The 2012 corporate bond, code 122187, carried a CNY 1,200,000,000 principal, a 5.56% annual simple-interest rate and a 17 October 2019 maturity, with interest paid annually and principal at maturity. Its China Fiberglass name identifies the same issuer before renaming, not a separate factory project. The report says net issue proceeds had been used to repay bank loans and cites an AA+ rating with stable outlook in the dated 2015 tracking report. This is historical reported assurance, not a current SinoFilings credit assessment. The bank-credit discussion reports 252.35 hundred-million CNY of year-end credit from thirty banks and 74.29 hundred-million CNY of used credit, as well as 175.60 hundred-million CNY of bank-loan repayments during the year. Credit lines, used credit and annual repayments are different measures; subtraction does not establish unconditional available cash or a complete bridge to drawn debt. The issuer describes timely service without proving future refinancing. The debt-ratio table reports closing cash and cash equivalents of CNY 2,853,785,300.04, distinct from the larger monetary-fund balance; the financial notes must explain restrictions and exclusions rather than treating the difference as a cash loss.

Reported bond principal / 2015 / 2012 corporate bond

RMB 1,200,000,000

Reported bond coupon rate / 2015 / 2012 corporate bond

5.56 percent

Reported annual bank credit / 2015 / year end credit discussion

RMB 25,235,000,000

Reported annual bank credit used / 2015 / year end credit discussion

RMB 7,429,000,000

Reported rounded loan repayments / 2015 / annual credit discussion

RMB 17,560,000,000

Cash and cash equivalents / 2015 / consolidated cash flow

RMB 2,853,785,300.04

The restricted-assets note reports CNY 4,944,506,157.79 in total: monetary funds of CNY 436,490,494.30, bills receivable of CNY 218,240,430.19, fixed assets of CNY 4,251,493,432.86 and intangible assets of CNY 38,281,800.44. Bills support bank acceptances; fixed assets cover borrowing mortgages and finance-leased assets; intangible assets cover borrowing mortgages. These carrying values describe assets with ownership or use restrictions, rather than new expenditure, guaranteed debt principal or a forecast loss. They also differ from Zhenshi’s pledge of shares in the listed company. The total must not be added to debt or subsidiary guarantees as if it were a further cash liability.

Restricted assets total / 2015 / consolidated

RMB 4,944,506,157.79

Pledged bills receivable / 2015 / consolidated

RMB 218,240,430.19

Restricted fixed assets / 2015 / consolidated

RMB 4,251,493,432.86

Restricted intangible assets / 2015 / consolidated

RMB 38,281,800.44

The consolidated cash-flow statement reports CNY 885,661,288.59 paid to acquire or construct fixed, intangible and other long-term assets, separately from CNY 1,520,265,596.54 paid for investments. Accordingly, the CNY 2,392,894,467.26 net investing cash outflow cannot all be called factory capital expenditure. Operating cash inflow of CNY 2,429,601,488.84, investing outflow and financing inflow of CNY 1,866,578,209.07, together with a negative CNY 42,849,703.05 exchange-rate effect, produce the CNY 1,860,435,527.60 increase in cash and equivalents. Sale-and-leaseback financing receipts of CNY 302,212,724.94 are financing flows, not product revenue or automatically the same figure as contractual rent. Parent operating cash flow was negative CNY 1,039,328,360.27 and belongs to a separate accounting perimeter. The profit-to-cash reconciliation includes noncash depreciation and depletion, provisions and working-capital movements; its combined depreciation/depletion label must not be substituted for ordinary machine depreciation alone.

Capital asset cash payments / 2015 / consolidated

RMB 885,661,288.59

Investment cash payments / 2015 / consolidated

RMB 1,520,265,596.54

Cash exchange-rate effect / 2015 / consolidated

RMB -42,849,703.05

Sale-and-leaseback financing receipts / 2015 / consolidated

RMB 302,212,724.94

Future minimum finance-lease payments were CNY 575,458,921.76. Deducting CNY 47,496,548.13 of unrecognized financing expenses gives a calculated CNY 527,962,373.63 of lease principal: CNY 163,566,383.41 classified as current and CNY 364,395,990.22 as noncurrent. The payment schedule is therefore not the same as the current principal classification. Minimum payments within one year were CNY 184,528,762.80; amounts in later buckets were CNY 184,104,979.82, CNY 89,434,371.20 and CNY 117,390,807.94. Future operating-lease payments of CNY 20,054,211.41 are separately disclosed. Finance-leased assets had a calculated carrying value of CNY 853,299,841.46 after accumulated depreciation. The disclosed sale-and-leaseback contracts transferred legal ownership while the equipment stayed in use. Their stated rent, first payments, equipment value and terms measure different things; they do not show that factories ceased operating or that each rent figure equals borrowing principal.

Minimum finance-lease payments / 2015 / consolidated

RMB 575,458,921.76

Unrecognized finance lease charges / 2015 / consolidated

RMB 47,496,548.13

Current finance-lease principal / 2015 / consolidated

RMB 163,566,383.41

Finance expense was CNY 740,571,097.02: interest expense of CNY 716,308,175.45, less interest income of CNY 49,120,119.98, plus exchange losses of CNY 46,963,048.24 and other finance costs of CNY 26,419,993.31. The exchange loss in earnings differs from the exchange effect in the cash-flow statement and from foreign-operation translation in other comprehensive income. The financial statements report a negative CNY 39,472,693.73 fair-value movement in the relevant financial-instrument line; this is not reconciled here to the closing CNY 41,334,330 derivative liability contract by contract. Effective cash-flow hedge gains of CNY 51,471,145.65 after tax and foreign-operation translation of CNY 25,668,868.75 contributed to owners’ other comprehensive income, rather than new product revenue. The Egyptian subsidiary used USD as functional currency. Currency denomination, functional currency and cash physically held abroad are distinct measures. Contract receipts, fair-value changes and investment gains must not be added together as if all were the same cash realization.

Finance expense / 2015 / consolidated

RMB 740,571,097.02

Interest expense / 2015 / consolidated

RMB 716,308,175.45

Exchange losses in earnings / 2015 / consolidated

RMB 46,963,048.24

Effective cash-flow hedge gains after tax / 2015 / owners oci

RMB 51,471,145.65

The issuer states that 60.44% of debt matured in less than one year at 31 December 2015, compared with 64.42% previously. Separately, 24.25% of interest-bearing borrowing bore fixed rates, compared with 33.12%. These are different reported denominators and are not inferred shares of every liability on the balance sheet. The maturity table is labeled as undiscounted contractual cash flows, while individual rows also match several financial-instrument carrying amounts; the report does not supply a complete principal-and-interest bridge here. Current bank principal of CNY 225,405,653.05 and current lease principal of CNY 163,566,383.41 together make the CNY 388,972,036.46 current portion of noncurrent liabilities. Short-term bonds of CNY 1,900,000,000 are separate from bank loans and long-term bonds carried at CNY 2,190,719,935.12. Interest-bearing debt, trade payables, guarantee exposures and asset collateral must not all be added as if they were new borrowing. Reported financing flexibility and credit controls are issuer statements, not assurance of future refinancing or zero collection risk.

Reported debt maturing under one year / 2015 / issuer defined debt

60.44 percent

Fixed-rate interest-bearing borrowing ratio / 2015 / issuer defined interest bearing borrowing

24.25 percent

Operating cash flow was positive CNY 2,429,601,488.84, investing cash flow negative CNY 2,392,894,467.26 and financing cash flow positive CNY 1,866,578,209.07. Management links the operating increase to more cash received from goods sales, investing changes to treasury management of temporarily idle equity proceeds and financing changes to newly raised equity capital. These are net category flows, not construction payments for each named project. Net fixed assets ended at CNY 11,635,731,992.14 and construction in progress at CNY 1,726,806,137.51. The business overview attributes the fixed-asset decline partly to the transfer of the Tongxiang 360,000-tonne programme phase-I cold repair into construction in progress, while the management discussion explains the decline in the fixed-asset share of total assets through the larger asset denominator after fundraising. A fall in the amount and a fall in the asset ratio are separate comparisons. Egypt phase-II construction and Tongxiang refurbishment contributed to the increase in construction in progress. An accounting transfer does not establish a new cash payment, added operating capacity or the physical completion of a furnace. Overseas assets of CNY 4,403,250,066.15 represented 18.28% of assets, a stock of assets rather than overseas sales or unrestricted cash.

Net cash from operating activities / 2015 / consolidated

RMB 2,429,601,488.84

Net cash from investing activities / 2015 / consolidated

RMB -2,392,894,467.26

Net cash from financing activities / 2015 / consolidated

RMB 1,866,578,209.07

Net fixed assets / 2015 / consolidated

RMB 11,635,731,992.14

Consolidated construction in progress / 2015 / consolidated

RMB 1,726,806,137.51

Overseas assets / 2015 / consolidated

RMB 4,403,250,066.15

The entrusted-investment table lists four principal-protected bank products funded with temporarily idle placement proceeds. The Bank of China and China Construction Bank Tongxiang branch products each had a 5.00 hundred-million CNY principal and dates of 30 December 2015 to 30 December 2016. The China CITIC Bank Jiaxing Tongxiang branch product was 3.00 hundred-million CNY from 29 December 2015 to 29 December 2016; the Agricultural Bank of China Tongxiang branch product was 2.00 hundred-million CNY from 29 December 2015 to 28 December 2016. The total was 15.00 hundred-million CNY, equivalent to CNY 1.5 billion. These product principals and contractual dates are not additional sales or evidence that all proceeds remained freely available as cash. The actual recovered-principal, realized-return and impairment columns are blank; blanks are not zero yields or completed repayment. A separate overdue principal-and-return line explicitly reports zero. The principal-protected label and approval description are issuer disclosures, not an independent guarantee of future performance. The four-product list is kept separate from later reports’ differently dated placements.

Reported treasury product principal / 2015 / boc 20151230 20161230

RMB 500,000,000

Reported treasury product principal / 2015 / ccb 20151230 20161230

RMB 500,000,000

Reported treasury product principal / 2015 / citic 20151229 20161229

RMB 300,000,000

Reported treasury product principal / 2015 / abc 20151229 20161228

RMB 200,000,000

Reported treasury product principal / 2015 / four product total

RMB 1,500,000,000

The monetary-fund note reports CNY 3,290,275,794.34 at year end and CNY 436,490,494.30 subject to restrictions. Their difference is exactly the CNY 2,853,785,300.04 closing cash and cash-equivalents balance in the cash-flow statement. The restricted-assets table identifies pledges, deposits and litigation preservation as reasons. This is an availability boundary, not a cash loss. The CNY 433,735,165.27 held abroad is a location measure, not automatically another restricted amount. Available cash comprises CNY 92,058.91 cash on hand, CNY 2,851,202,106.66 bank deposits available for payment and CNY 2,491,134.47 other monetary funds available for payment. The separate financial-instrument classification table prints monetary funds of CNY 3,290,407,337.84, CNY 131,543.50 above the note. Both values were checked on original tables; the report provides no reconciliation here. The discrepancy remains explicit and must not be silently corrected or used to redefine available cash.

Restricted monetary funds / 2015 / consolidated

RMB 436,490,494.3

Monetary funds held abroad / 2015 / consolidated

RMB 433,735,165.27

Available bank deposits / 2015 / cash flow cash composition

RMB 2,851,202,106.66

Available other monetary funds / 2015 / cash flow cash composition

RMB 2,491,134.47

Consolidated monetary funds / 2015 / financial instrument table as printed

RMB 3,290,407,337.84

The audited statements cover the consolidated group and the listed parent under Chinese Accounting Standards for 2015. The financial auditor signed the report on 16 March 2016 and stated that the accounts present fairly, in all material respects, the financial position, results and cash flows under that framework. This opinion concerns the financial statements; it is not approval of this English research page. Consolidated operating profit was CNY 1,138,027,964.04, pretax profit CNY 1,181,093,236.06 and net profit CNY 986,531,563.69, including CNY 3,484,462.04 attributable to minority interests. The CNY 983,047,101.65 attributable to owners and the parent’s CNY 1,019,741,181.90 net profit are different reporting populations. Parent subsidiary investment income must not be added to consolidated profit. The report’s 2015 accounting policies are historical policies, rather than a description of current standards.

Reported operating profit / 2015 / consolidated

RMB 1,138,027,964.04

Consolidated pretax profit / 2015 / consolidated

RMB 1,181,093,236.06

Consolidated net profit / 2015 / consolidated

RMB 986,531,563.69

Profit attributable to minority owners / 2015 / consolidated

RMB 3,484,462.04

Consolidated trade receivables had gross value of CNY 1,866,966,743.95, an allowance of CNY 106,305,656.54 and net value of CNY 1,760,661,087.41 at year end. The allowance rolls forward from CNY 77,045,717.30, adding CNY 34,278,135.17 charged during the year and deducting CNY 5,018,195.93 written off. The named important write-offs form a subset of the total, not a second charge. Top-five closing receivables total CNY 164,931,741.87, or 8.83% of gross receivables, with provisions of CNY 23,371,453.94. This closing-balance concentration differs from the separately reported annual top-five customer sales. The parent receivable table also has a different population. In particular, Feicheng Sanying Fiber Industry in the consolidated list and Feicheng Lianyi Engineering Plastics in the parent list are different disclosed names; their common city does not establish identity. The issuer’s historical aging and individual-assessment policy does not guarantee collection and must not be relabeled as a modern expected-credit-loss model.

Trade receivables before allowance / 2015 / consolidated

RMB 1,866,966,743.95

Trade receivable expected-credit-loss allowance / 2015 / consolidated

RMB 106,305,656.54

Trade receivables after allowance / 2015 / consolidated

RMB 1,760,661,087.41

Trade receivable allowance charge / 2015 / consolidated

RMB 34,278,135.17

Actual trade receivable write-offs / 2015 / consolidated

RMB 5,018,195.93

Top-five closing trade receivables / 2015 / consolidated top five closing

RMB 164,931,741.87

The tax note sets out entity-specific historical tax treatment, including 15% concessions alongside the standard 25% rate; it does not imply that every group company used one rate. Income-tax expense was CNY 194,561,672.37, comprising current tax of CNY 189,288,539.28 and deferred tax of CNY 5,273,133.09. Deductible losses of CNY 510,162,568.81 were disclosed without recognition of a deferred-tax asset, rather than as cash available for recovery. Government grants recognized in earnings were CNY 59,875,946.16, while grant cash received was CNY 44,005,177.16. The nonrecurring-item schedule includes a different CNY 55,961,454.16 grant measure, because the issuer treats employment and social-security subsidies separately in that classification. Deferred capital grants, current cash receipts and grant income therefore must not be combined. Technology-project grants identify funded work; they are not proof of a commercial customer, completed qualification or sales volume.

Income-tax expense / 2015 / consolidated

RMB 194,561,672.37

Government grants in earnings / 2015 / consolidated

RMB 59,875,946.16

Government grant cash received / 2015 / consolidated

RMB 44,005,177.16

The supplementary schedule reports net nonrecurring gains of CNY 2,017,963.35 after its tax and minority adjustments. Its components include a negative CNY 20,949,407.16 from noncurrent-asset disposals, CNY 55,961,454.16 of qualifying government grants, a negative CNY 39,472,693.73 financial-instrument result, other nonoperating items and CNY 4,347,778.04 of other qualifying gains. Positive and negative components must retain their signs; gross grant income is not the net nonrecurring total. The separate CNY 3,914,492 medical-insurance subsidy was classified as recurring by the issuer because the social-security support followed local employment. That is the issuer’s classification, rather than a guarantee that support will continue. Adjusted and unadjusted earnings remain descriptive operating measures and do not imply a trading recommendation.

Nonrecurring gains net / 2015 / owners after tax and minority

RMB 2,017,963.35

Noncurrent-asset disposal result / 2015 / consolidated

RMB -20,949,407.16

Issuer-classified recurring medical-insurance subsidy / 2015 / issuer recurring classification

RMB 3,914,492

The intangible-asset note reports CNY 262,031,462.88 of land-use rights and CNY 116,067,640.70 of mining rights at carrying value, alongside software, patents, nonpatented technology, trademarks and concessions. These accounting assets do not independently establish the validity, remaining scope or renewal of any project permit. The internal-development additions row is blank in this table, so it does not support treating all technical-development expense as a capitalized asset. Goodwill was CNY 472,512,501.24, including CNY 176,839,725.90 attributed to Tongxiang Jinshi and CNY 189,612,641.95 to Tongxiang Leishi. The disclosed unchanged goodwill balances are acquisition accounting values, not new plant capacity, metal inventory or an independent current valuation. A separate available-for-sale investment impairment balance must not be described as goodwill impairment. Routine amortization and impairment rules remain in the source archive; asset carrying values alone do not prove future recoverability.

Land-use rights carrying value / 2015 / consolidated

RMB 262,031,462.88

Net mining rights / 2015 / consolidated

RMB 116,067,640.7

Goodwill carrying value / 2015 / consolidated

RMB 472,512,501.24

Bills receivable totaled CNY 1,444,383,789.78 at year end, comprising bank acceptances of CNY 1,432,262,064.18 and commercial acceptances of CNY 12,121,725.60. The separately disclosed pledged bills of CNY 218,240,430.19 remain part of the asset-restriction account, not an additional receivable or available cash. Other receivables were CNY 114,406,838.12 gross and CNY 112,197,383.79 net after CNY 2,209,454.33 of provisions. These include tax refunds and deposits rather than only customer sales. The note separately assesses CNY 27,000,000 due from a finance-lease counterparty and CNY 25,029,746.33 of export-tax refunds without a provision because the issuer expected recovery; that assessment is not an independent guarantee of collection. Other-receivable write-offs were CNY 3,420,408, of which the named important items total CNY 3,419,408. The named subset is not an exhaustive total. The income statement’s bad-debt expense of CNY 34,975,979.75 has a wider reporting scope than the trade-receivable note’s CNY 34,278,135.17 charge; no unsupported full provision bridge is inferred.

Bills receivable net / 2015 / consolidated

RMB 1,444,383,789.78

Gross other receivables / 2015 / consolidated

RMB 114,406,838.12

Net other receivables / 2015 / consolidated

RMB 112,197,383.79

Other receivable credit-loss allowance / 2015 / consolidated

RMB 2,209,454.33

The tax note reports deferred-tax assets of CNY 37,639,568.01 and deferred-tax liabilities of CNY 61,942,446.37 before offsetting. These reflect different temporary differences, including receivable provisions, depreciation, internal profit, tax losses and acquisition valuations; they are not the same as tax paid or an immediately recoverable refund. The unrecognized deductible-loss base remains separately disclosed. The waste-glass-fiber utilization project received CNY 7 million of construction support in 2012. Its deferred grant decreased from CNY 6,079,115.11 by CNY 420,162.95 recognized in 2015 earnings to CNY 5,658,952.16 at year end. The 2012 cash receipt, 2015 income release and closing deferred balance are different periods and measures. No new 2015 receipt of the original construction grant is inferred. The project grant supports the account of recycling assets; it does not independently verify environmental permits or operating performance.

Deferred tax assets before offset / 2015 / consolidated before offset

RMB 37,639,568.01

Deferred tax liabilities before offset / 2015 / consolidated before offset

RMB 61,942,446.37

Reported deferred asset-related grant balance / 2015 / waste glass fiber utilization

RMB 5,658,952.16

Deferred grant income / 2015 / waste glass fiber utilization

RMB 420,162.95

Jushi Group was wholly owned and produced and sold glass-fiber products. The major-company table reports revenue of 716,035.31 ten-thousand CNY and net profit of 99,799.64 ten-thousand CNY for that company. These are named-company figures, not amounts to add to listed-group revenue or parent-company earnings. The table does not allocate them to individual factories or projects, and ownership alone does not show cash dividends received. Company, geographic main-business and consolidated revenue scopes must be kept separate until the financial notes explain the reporting perimeter. Related and parent-company accounts will be compared without extending research to counterparties.

Revenue / 2015 / jushi group reported company

RMB 7,160,353,100

Net profit / 2015 / jushi group reported company

RMB 997,996,400

Beixin Technology Development was wholly owned and sold building materials. Its reported revenue was 3,239.71 ten-thousand CNY and net profit 32.57 ten-thousand CNY, both stated for the named company in the major-company table. This trading activity is distinct from glass-fiber manufacturing. Its revenue and profit cannot be added again to consolidated totals or assigned to a glass-fiber factory; the table also does not establish dividends received by the listed parent. The business difference provides context for examining the different product and consolidated reporting perimeters in the financial notes. No separate investigation of this counterparty is required.

Revenue / 2015 / beixin technology reported company

RMB 32,397,100

Net profit / 2015 / beixin technology reported company

RMB 325,700

The parent-company note reports CNY 197,232,648.35 receivable from Jushi Egypt, or 23.71% of parent gross trade receivables, with no bad-debt provision under its stated related-party treatment. The parent also reports CNY 60,000,000 of funding principal receivable from Jushi Jiujiang, identified separately from its trade balance. These are parent-level intragroup positions; they must not be added to consolidated third-party receivables. No provision under the issuer’s policy is not a guarantee of economic recovery. The parent investment-income note reports CNY 1,000,000,000 under the cost method for subsidiary investments and CNY 998,979,166.47 total investment income after an equity-method loss. The parent cash-flow statement reports CNY 350,000,000 received from investment income, while its balance sheet reports CNY 1,000,000,000 dividends receivable at year end. Accrued investment income, cash received and closing receivables have different periods and scopes. They are not additional group revenue or proof that the entire declared dividend was received in cash in 2015.

Parent intragroup trade receivable / 2015 / parent to jushi egypt

RMB 197,232,648.35

Parent intragroup funding principal / 2015 / parent to jushi jiujiang

RMB 60,000,000

Parent subsidiary investment income / 2015 / cost method subsidiaries

RMB 1,000,000,000

Parent investment income / 2015 / parent company

RMB 998,979,166.47

The ownership table shows Jushi Group and Beixin Technology as direct subsidiaries of the listed company, while the manufacturing and most channel entities are listed in the indirect-ownership column. Tongxiang, Jiujiang and Chengdu manufacture glass fiber and products. The disclosed upstream network includes Jiujiang Calcium for calcium oxide, calcium carbonate and fluorite; Dean Linda Limestone Quarry for limestone and other nonmetallic-mineral storage; Zhejiang Beite for glass-furnace refractory bricks; Tongxiang Jinshi for platinum-rhodium equipment; and Tongxiang Leishi for processing nonmetallic minerals. Reported indirect interests include 93% in Beite, 90% in Dean Linda and 60% in both Hongjia Kaolin Mining and Jianshi Juhong Mining. Egypt’s Suez entity is recorded for manufacturing and sales at 100% indirect ownership. The California US entity is a sales and import/export company; it is not the proposed South Carolina manufacturing project. Sales channels extend through Hong Kong, Toronto, Tokyo, Seoul, Mumbai, Milan, Madrid, Singapore, Lyon and Rio de Janeiro, with different reported ownership percentages. Legal registration and broad operating cities do not provide verified factory coordinates. The report says Jushi International Sales Services was cancelled during 2015; that consolidation change alone does not show a loss of all international customers. Stated business scope describes an entity’s role, not proof that every permitted product was commercially sold.

The parent’s investment in Jushi Group increased by CNY 433,550,000 during 2015, from CNY 7,661,620,009.39 to CNY 8,095,170,009.39. Parent investment in subsidiaries totaled CNY 8,185,530,767.70 at year end. These are parent-account investment carrying amounts and additions, not a further addition to consolidated production assets or evidence that the whole amount funded one named factory. The parent’s subsidiary investment income and cash receipts are explained separately. The parent revenue and cost table prints prior-period totals of CNY 3,936,559,746.19 and CNY 3,743,611,920.80 but leaves the current-period columns blank. Those prior-year figures must not be assigned to 2015; a blank cell is retained as a reporting boundary rather than filled with a guessed value.

Parent subsidiary investment additions / 2015 / parent to jushi group

RMB 433,550,000

Production uses electricity, natural gas, minerals and chemical auxiliaries. Management describes improving furnace melting and fiber-drawing yields, greater output per furnace position and automation as mechanisms for lowering unit consumption and labor requirements. It reports domestic-base application of pure-oxygen combustion and waste-fiber reuse, and a biomembrane treatment system processing 4,800 tonnes of wastewater per day for reuse. The report does not allocate independently verified savings to each factory or establish compliance with every permit. The risk discussion emphasizes that tank-furnace production is continuous and cannot simply be stopped when fuel supply is disrupted. Gas stations, storage tanks and vehicle-based backup gas were contingency measures; management says emergency gas could arrive within two to twelve hours. This stated response capability is not a demonstrated outage tolerance or proof that the furnaces could operate without fuel. Supply interruption and price changes therefore remain relevant to production continuity and cost. Generic environmental honors and training activity counts are omitted from this narrative because they do not explain a specific operating change.

The parent and major subsidiaries had 8,388 employees: 133 at the parent and 8,255 at major subsidiaries. Occupational categories were 5,632 production workers, 1,231 technical staff, 89 sales staff, 83 finance staff and 1,353 administrative staff. The separate R&D count of 885 is not interchangeable with all technical personnel. This explains a manufacturing-heavy workforce without assigning group totals to individual factories or estimating site productivity. Outsourced work totaled 115.44 ten-thousand hours, equivalent to 1,154,400 hours, and compensation was 1,790 ten-thousand CNY, equivalent to CNY 17.9 million. Outsourced hours are not additional employees. The following-year training plan emphasized operating-role certification and renewal, which is relevant to qualified staff at posts. Planned session counts and attendance do not demonstrate completed training, higher output or lower defect rates. Routine welfare and activity descriptions remain in the source archive.

Reported employee count / 2015 / parent and major subsidiaries

8,388 people

Reported employee count / 2015 / production

5,632 people

Reported employee count / 2015 / technical

1,231 people

Outsourced labour hours / 2015 / report defined

1,154,400 hours

Reported outsourced labor compensation / 2015 / report defined

RMB 17,900,000

The annual report identifies glass-fiber manufacturing as part of the building-materials industry classified as heavily polluting for environmental supervision. It reports cleaner-production reviews in 2007 and December 2012, no major environmental problems in 2015 and compliant discharges at all production bases. These are issuer statements in the annual report, not an independent SinoFilings determination. The passage supplies no site-by-site discharge quantities, monitoring readings, pollutant limits or permit conditions, and therefore cannot establish independently that every operating requirement was satisfied. The separately described water reuse, waste-fiber recycling and oxygen-combustion measures explain resource mechanisms; they do not fill the missing site measurements or quantify the compliance cost. Ordinary environmental honors are omitted because they add no specific operating evidence.

Egypt phase-II was an 80,000-tonne-per-year glass-fiber line under construction. The 2015 account says platinum processing, packaging materials and products workshops had successively entered operation, while the powder workshop, oxygen station and substation were being built; full project commissioning was planned for June 2016. Operation of support workshops is not proof that the glass-fiber furnace already produced at full capacity. The domestic repair account separately names a Tongxiang 35,000-tonne line, phase I of the Tongxiang 360,000-tonne programme and phase I of the Chengdu 140,000-tonne programme. These are refurbishment and programme descriptions, not three new increments of annual yarn output. The report also describes preparations for a United States 80,000-tonne line intended to start construction in 2016 and an Egypt 40,000-tonne high-performance line. Preparations are not construction completion or commercial delivery. The risk passage dates first-line Egypt ignition and production to November 2013, whereas the business discussion describes completion and production in 2014; the different milestone labels are retained. The report cites a combined 24.8% EU anti-dumping and countervailing rate for Jushi Group from 24 December 2014 to March 2016 and leaves subsequent treatment dependent on review. This is historical issuer disclosure, not a verified current tariff. Management expected Egypt supply to reduce trade exposure, without proving exemption for every product or shipment. Entity-specific tax qualification, currency and interest-rate risks remain separate from project commissioning.

The construction-in-progress table records the Egypt second 80,000-tonne line at CNY 685,208,632.13 at year end, with CNY 708,896,111.93 added during the year, CNY 23,115,912.54 transferred to fixed assets and CNY 571,567.26 of other reductions. It reports a CNY 1,156,526,600 budget, 61.30% cumulative investment-to-budget ratio and 50.00% engineering progress. These are distinct measurements; transfers do not establish that the whole line was producing at rated capacity. For the 308 electric-melting retrofit, the table prints a CNY 13,519,300 budget but CNY 148,623,108.28 transferred to fixed assets and a 94.73% cumulative ratio. For phase one of the 360,000-tonne retrofit it prints a CNY 494,099,600 budget, CNY 953,898,931.71 annual additions, CNY 934,171,696.30 closing balance and a 75.85% cumulative ratio. The original figures do not reconcile by simple division. No missing zero or alternative budget is invented. Phase budgets and accounting movements also must not be substituted for the separately stated whole-plan investment figures.

The Egypt expansion note states that the second 80,000-tonne E-glass line started construction in the first quarter of 2015, with stated investment of USD 188.05 million funded by internal resources and bank borrowing and expected completion in the first quarter of 2016. A separate 40,000-tonne high-performance line had stated investment of USD 109.9502 million, expected construction start in 2016 and an approximately one-year build. Expectations are not completed milestones. The South Carolina 80,000-tonne line had shareholder approval on 6 February 2015 and had not started construction as of the report’s statement; its provisional manufacturing-company name is distinct from the existing US sales subsidiary. Chengdu’s plan upgrades existing 40,000- and 50,000-tonne lines to 50,000 and 90,000 tonnes, respectively, giving a combined 140,000-tonne target rather than 140,000 tonnes of incremental capacity. Whole-plan investment was 88,590.29 ten-thousand CNY over two years in stages according to market conditions. The Tongxiang plan cold-repairs two existing 140,000-tonne lines to 180,000 tonnes each, with whole-plan investment of 104,829.46 ten-thousand CNY, a fourth-quarter 2015 construction start and staged two-year implementation. Nominal targets, replacement capacity, project investment and actual output remain separate; names alone do not justify merging project phases.

The management discussion expected full operation of the second Egyptian 80,000-tonne project in June 2016, while the financial note expected completion in the first quarter of 2016. Supporting workshops had entered operation while other facilities remained under construction. These differently labeled completion and commissioning expectations are preserved; the report does not provide a full bridge between their dates and neither establishes that the whole glass-fiber line was already producing in 2015. Likewise, the separately named Tongxiang 35,000-tonne cold repair, the 308 electric-melting retrofit and phase one of the 360,000-tonne program are not merged solely from nearby labels or investment figures. The earlier Egypt first-line ignition/production date and later completion description remain separately dated milestones. A project’s expected capacity, accounting transfer and actual production remain distinct until an explicit source links them.

The FY2015 proposal uses 1,105,526,152 shares as its base and provides CNY 3.12 per ten shares before tax, totaling CNY 344,924,159.42. The parent-company profit quoted for the proposal was CNY 1,019,741,181.90. The table instead compares the payout with consolidated attributable profit of CNY 983,047,101.65 and reports a 35.09% payout ratio. Parent and consolidated earnings are different scopes. The report also proposes twelve new shares per ten existing shares through capitalization of capital reserves, adding 1,326,631,382 shares and bringing the proposed total to 2,432,157,534. Reserve capitalization reallocates equity; it raises no new cash and is not operating profit. The quoted parent capital-reserve balance was CNY 9,033,708,095.67. The proposal was not an already implemented FY2015 cash payment or already effective reserve-share issue. In contrast, the FY2014 cash dividend of CNY 143,983,867.50 was implemented on 23 April 2015. Distribution-year labels, proposals and payment dates must remain separate.

Proposed cash distribution / 2015 / fy2015 proposal

RMB 344,924,159.42

Parent net profit / 2015 / parent company

RMB 1,019,741,181.9

Profit attributable to shareholders / 2015 / consolidated

RMB 983,047,101.65

Proposed dividend to attributable profit / 2015 / consolidated attributable profit

35.09 percent

Proposed capital-reserve shares / 2015 / fy2015 proposal

1,326,631,382 shares

Capital reserve / 2015 / parent company

RMB 9,033,708,095.67

Cash dividend implemented / 2015 / fy2014 distribution paid 2015

RMB 143,983,867.5

The share-change explanation states that private-placement registration was completed on 7 January 2016 and increased registered shares from 872,629,500 to 1,105,526,152. The operating account separately places receipt of the proceeds on 28 December 2015. Registration is not a second receipt of financing. The year-end top-shareholder table reports China National Building Material Company Limited, called CNBM Company here, holding 298,186,135 shares or 34.17%; it identifies that company as the controlling shareholder. The separately identified actual-controller group is China National Building Materials Group, rather than the same entity as CNBM Company. Zhenshi Holding held 172,389,223 shares or 19.76%, of which 158,016,560 shares were pledged. These percentages are consistent after rounding with the earlier registered share base, not the enlarged placement base; the labels and dates are retained pending comparison with accounting share capital. A shareholder pledge is distinct from a mortgage of the company’s operating assets. The report says CNBM Company, Zhenshi, Pearl Success and Surest were not related or acting in concert under its stated disclosure rules, while relationships among other shareholders were unknown. Neither controlling status nor a pledge establishes complete ownership, a new company or a factory identity.

Shareholder shares / 2015 / cnbm company

298,186,135 shares

Shareholder ownership / 2015 / cnbm company

34.17 percent

Shareholder shares / 2015 / zhenshi holding

172,389,223 shares

Shareholder ownership / 2015 / zhenshi holding

19.76 percent

Shareholder pledged shares / 2015 / zhenshi holding

158,016,560 shares

The commitment table describes Assure Glory’s compensation obligations arising from the acquisition of Tongxiang Jinshi and Tongxiang Leishi: 75% interests were acquired in 2012 and the remaining 25% in 2013. The combined forecast net-profit commitments were 8,489.67 ten-thousand CNY for 2013, 7,496.10 for 2014 and 7,402.84 for 2015. These are agreed forecast amounts for the two businesses together, not separately measured output, actual profits or cash compensation already received. The table marks the commitments as timely and strictly fulfilled; that issuer status does not itself provide the detailed realized-profit and compensation calculation. The source also describes dated share-purchase plans and non-disposal commitments by the controlling and second-largest shareholders. Plans and commitments are not automatic proof of all purchases or future ownership changes. The named acquisition and shareholder relationships are retained as disclosed; no further investigation of the counterparties is added.

The report shows several directors and supervisors also holding executive, finance or audit roles at CNBM Company, and Zhenshi’s chairman holding management roles at Jushi Group. These disclosed overlaps provide context for control and related-party oversight; they do not by themselves establish misconduct or the failure of operational independence. The issuer reports no major internal-control deficiency and says its auditor issued an unqualified internal-control audit report. That is the annual report’s description of a separate internal-control audit, rather than independent editorial approval of this English research or a guarantee against all business risks. Routine governance procedures, meeting attendance and lengthy biographies are compressed. The annual financial audit opinion and scope still require direct comparison with the financial chapter, while actual related operating transactions remain to be extracted from its notes.

The financial note reports CNBM Company’s holding and voting-right percentages as 26.97%. Its earlier ownership table reports the same 298,186,135 shares at 34.17%. The two percentages round consistently using 1,105,526,152 and 872,629,500 shares respectively. The placement note confirms 232,896,652 new shares with CNY 1 face value; the monetary denomination of share capital and a count of shares remain separate concepts even where numerically equal. Cash receipt on 28 December 2015 and registration completed on 7 January 2016 are distinct dated events. In the subsequent-event note, the 14 February 2016 notification reports Zhenshi holding the same 172,389,223 shares at 15.59% after the enlarged base; it also reports a release of 10,000,000 pledged shares and 148,016,560 remaining pledged shares, or 13.39% of total shares. This is a later pledge update, not the year-end pledge balance. The annual report does not supply a full register-versus-accounting cutoff reconciliation; original labels and dates are retained. CNBM Company remains distinct from the actual-controller group.

Shareholder ownership / 2015 / financial note cnbm company

26.97 percent

The financial note reports combined audited net profit of 25,267.06 ten-thousand CNY for Tongxiang Jinshi and Tongxiang Leishi in 2013 and 2014 and says those profit targets were met. This is a two-year combined result, not their actual 2015 profit or an allocation between the two businesses. The earlier combined forecast commitments for 2013, 2014 and 2015 remain distinct. Separately, CNBM Company, Zhenshi, Pearl Success and Surest paid Jushi Group CNY 38,669,767.65 in April 2015 under the historic tax-compensation commitment arising from its conversion to a domestic enterprise, and CNY 146,784.40 under the property-title cost commitment. These are identified shareholder compensation payments, not automatically profit-shortfall compensation, product revenue or a new acquisition. The two amounts total CNY 38,816,552.05, matching the capital-reserve note’s increase in other capital reserves. No further counterparty investigation is added.

Historic tax compensation received / 2015 / 2011 acquisition commitment

RMB 38,669,767.65

Historic title-related compensation received / 2015 / 2011 acquisition commitment

RMB 146,784.4

On 3 February 2016 the board approved participation in a proposed financial-leasing company in the Shanghai Free Trade Zone, provisionally named Guangrongda Financial Leasing. The report describes total registered capital of 50,000 ten-thousand CNY and a proposed Jushi contribution of 10,050 ten-thousand CNY for a 20.10% interest. The name remained subject to registration. This disclosed subsequent proposal does not prove payment, incorporation, licensing or commencement of operations in 2015. Shanghai Dongchang and Yongding are recorded only as the disclosed other investors. The same subsequent-event section reports a 25 January 2016 notice that CNBM Group and Sinoma Group were planning a strategic reorganization whose plan and approvals remained pending. That dated disclosure is not evidence of a completed merger at the 2015 year end.

The related-party note reports finished-product sales of CNY 409,064,874.53 to Hengshi Fiber and CNY 90,817,352.57 to Zhenshi Holding, separately from CNY 499,739.12 to Hengshi Egypt. These annual sales are distinct from closing receivables and from the annual customer-concentration table. Purchases include CNY 193,704,230.21 of logistics from Zhejiang Yushi; other regional logistics entities and transaction categories are disclosed separately. The common Yushi name does not establish that each entry is one legal entity. CNBM International Trade and CNBM Group Import and Export are also separately named counterparties. The guarantee table identifies the reporting company as the guaranteed party and Zhenshi as guarantor for USD 31 million, explicitly in USD despite the surrounding CNY unit heading. Its stated term runs from 17 February 2011 to 11 February 2016 and it had not been fulfilled at the report’s stated point. The table does not identify Jushi Egypt as beneficiary. This corrects the prior English attribution to that subsidiary; the amount and original evidence remain unchanged. This is a disclosed guarantee, not a further sale or proof of a realized loss. Names and relationships are recorded within the issuer’s disclosures, without extending research into counterparties.

Related-party sales / 2015 / hengshi fiber

RMB 409,064,874.53

Related-party sales / 2015 / zhenshi holding

RMB 90,817,352.57

Related-party logistics purchases / 2015 / zhejiang yushi

RMB 193,704,230.21

Related-party closing trade receivables totaled CNY 20,136,574.28 with CNY 201,365.73 of provisions. Related supplier prepayments were CNY 3,875,240.99, trade payables CNY 1,948,544.60 and customer advances CNY 5,077,979.29. These balances are separate from annual related-party sales and purchases. Key management personnel remuneration was CNY 11,370,000 for 2015, compared with CNY 7,034,200 previously; its financial-note population is not assumed to match every person and role in the director-biography remuneration table. The note headed important commitments states none within that section. This statement does not erase separately disclosed guarantees, finance-lease contracts, project plans or historical acquisition commitments. The names and scope are retained from the report without investigating related parties recursively.

Related trade receivables / 2015 / consolidated related party

RMB 20,136,574.28

Related trade receivable allowance / 2015 / consolidated related party

RMB 201,365.73

Related-party trade payables / 2015 / consolidated related party

RMB 1,948,544.6

Key management remuneration / 2015 / financial note key management

RMB 11,370,000