China Jushi FY2015: Markets, customers and suppliers

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.