China Jushi | FY2016 business review

Glass fiber and related products generated RMB 7.303899973 billion, or 98.09% of total revenue. The report retains central bulk purchasing across Tongxiang, Chengdu, Jiujiang and Egypt, flexible production guided primarily by sales, and a combination of direct sales, overseas trading subsidiaries and distributors. Reported foreign sales were 48.20% of main-business sales. These operating arrangements connect the manufacturing footprint to customers without assuming each product was made at every base.

The company reports introduction of E8 high-modulus glass fiber for high-end composites and larger wind-turbine blades. Management claims higher modulus and better fatigue performance than E6 and E7 while retaining electrical insulation. It also describes progress in pipe yarn and highly wettable LFT yarn, and successful development of electronic-fabric treatment agents and electronic-yarn sizing. Product introductions and process-chemical development are distinct; the passage does not quantify E8 sales or supply a complete numerical specification.

R&D investment was RMB 254.6140 million, entirely expensed, equal to 3.42% of revenue; the table lists 849 research personnel. The report identifies 18 major innovation projects and 72 general innovation projects and 74 patent authorisations, including 21 inventions. It describes extending grade management from roving to chemical inputs and electronic yarn and fabric. Project counts and patents are measures of research activity, not proof of sales for each new grade.

Management focused on wind-energy yarn, thermoplastic products, chopped strands and glass fiber products, with dedicated production and dispatch for important products and customers. Revenue reached RMB 7.4463337 billion. The top five customers represented 12.88% of annual sales; related-party sales within that group represented 9.32% of the total. A stated focus on higher-end customers is not a quantified product-specific market share or an exclusive relationship with each customer.

Consolidated revenue was CNY 7,446,333,673.92, up 5.55%, while consolidated operating cost was CNY 4,116,424,876.34, down 2.26%. Management attributes the revenue increase to higher sales volume and the cost decline to lower production costs. The glass-fiber-and-products row reports CNY 7,303,899,973.47 of revenue, CNY 4,053,817,412.36 of cost and a 44.50% gross margin, up 4.35 percentage points. The report links faster glass-fiber sales to recovering wind-energy and thermoplastic demand and structural, regional or seasonal shortages in some products. It does not provide actual production or sales tonnage in this management table, so these figures cannot establish realized price per tonne. The geographic main-business rows show domestic revenue of CNY 3,818,606,578.99 at a 38.95% margin and overseas revenue of CNY 3,553,087,337.73 at a 50.33% margin. Their total differs from the glass-fiber product row; the stated overseas share of 48.20% concerns main-business sales. The regional figures are not an allocation of glass-fiber revenue to be forced into the product total. The other-product perimeter needs comparison with the financial notes. Higher reported overseas margin alone does not identify which factory, customer or product supplied the sales.

Revenue / 2016 / consolidated

RMB 7,446,333,673.92

Cost of sales / 2016 / consolidated

RMB 4,116,424,876.34

Revenue / 2016 / glass fiber products

RMB 7,303,899,973.47

Cost of sales / 2016 / glass fiber products

RMB 4,053,817,412.36

Gross margin / 2016 / glass fiber products

44.5 percent

Revenue / 2016 / domestic main business

RMB 3,818,606,578.99

Cost of sales / 2016 / domestic main business

RMB 2,331,251,981.89

Gross margin / 2016 / domestic main business

38.95 percent

Revenue / 2016 / overseas main business

RMB 3,553,087,337.73

Cost of sales / 2016 / overseas main business

RMB 1,764,836,216.21

Gross margin / 2016 / overseas main business

50.33 percent

The financial note says all businesses form one reportable segment under the company’s internal management and reporting system. Its supplementary product table reports external revenue of CNY 7,371,693,916.72 and total cost of CNY 4,096,088,198.10, including glass-fiber-product cost of CNY 4,053,817,412.36 and other-product cost of CNY 42,270,785.74. The geographic table has the same revenue total, split into domestic CNY 3,818,606,578.99 and foreign CNY 3,553,087,337.73. Its costs of CNY 2,331,251,981.89 and CNY 1,764,836,216.21 sum to CNY 4,096,088,198.10, matching the product-table total. The geographic table nevertheless prints a total of CNY 4,118,394,387.32, which exceeds its own two rows and the product-table total by CNY 22,306,189.22. The geographic cost total also differs from consolidated income-statement operating cost. These are visually confirmed source values, without an explanatory bridge disclosed in the compared tables. The English account therefore preserves the separate source measures and does not manufacture comparable regional margins or silently correct a cost total. A foreign-revenue classification is not automatically exports from China, since the group also has overseas activities. The issuer describes customers as dispersed and says it has no dependence on a major customer; that statement does not disclose the identity or order book of every customer.

Supplementary product total cost / 2016 / financial note products

RMB 4,096,088,198.1

Supplementary geographic total cost / 2016 / financial note geography

RMB 4,118,394,387.32

Supplementary geographic total cost / 2016 / financial note domestic

RMB 2,331,251,981.89

Supplementary geographic total cost / 2016 / financial note foreign

RMB 1,764,836,216.21

The cost-analysis table identifies CNY 1,168,653,022.39 of materials for glass fiber and products and labels that amount as 28.39% of total cost. The reported percentage is consistent, after rounding, with consolidated operating cost; using the glass-fiber product cost instead would produce a different percentage. The source label and percentage are retained without silently changing the denominator. Separately, the top five suppliers accounted for 23.16% of annual purchases. Their disclosed purchases were 99,380.91 ten-thousand CNY, equivalent to CNY 993.8091 million. The report explicitly assigns zero related-party purchases to this top-five subset. That does not establish zero related-party purchases across the group. Purchasing concentration is a share of annual procurement, not a share of sales or a list of five identified suppliers. Joint negotiation and separate contracting across the four manufacturing bases were intended to manage input costs; they do not prove that all price or supply risk was eliminated.

Reported material cost / 2016 / glass fiber products

RMB 1,168,653,022.39

Reported material cost share / 2016 / source total cost label

28.39 percent

Top-five supplier purchases / 2016 / consolidated top five

RMB 993,809,100

Top five suppliers share of purchases / 2016 / consolidated top five

23.16 percent

Related purchases within top five suppliers / 2016 / consolidated top five related subset

RMB 0

Domestic sales mainly used direct selling with a smaller agency channel; overseas sales combined trading subsidiaries, distributors and direct selling. The report says overseas sales companies operated across fourteen countries and regions, with an exclusive distributor in Germany and customer relationships across more than one hundred countries and regions. Those are issuer descriptions of the marketing network, not fourteen production bases or a verified named customer roster. It separately describes four major manufacturing bases. The report lists management-system certifications and product qualifications from classification or testing bodies, including marine-related bodies, and chemical-compliance tests. The list does not supply the complete product and validity scope of each certificate; testing or a certification count cannot establish approval for every application. Product development in wind energy, thermoplastics and electronic materials is discussed separately from actual orders and quantified product sales.

Closing supplier prepayments were CNY 156,316,847.92, of which CNY 153,053,413.18 was within one year. The top-five recipients represented CNY 107,242,692.44, or 68.61%, of the closing prepayment total. The list includes refractory materials, GT COMMODITIES LLC, industrial-zone development, the Jiaxing gas network and equipment suppliers. The balance demonstrates advances to these counterparties, without establishing what every payment purchased, the timing of delivery or a factory’s exact fuel or commodity volume. Separately, trade payables comprise CNY 333,733,793.70 for raw materials, CNY 462,968,707.80 for equipment and CNY 101,570,508.49 for construction, among other categories. These liabilities are not annual procurement expenditure or construction cash payments. The significant payables aged more than one year are described by the issuer as not yet contractually due. Age alone therefore is not evidence of payment default. The prepayment-concentration measure differs from the annual top-five-supplier procurement share already discussed; the two denominators remain separate.

Supplier prepayments closing balance / 2016 / consolidated

RMB 156,316,847.92

Supplier prepayments aged within one year / 2016 / consolidated

RMB 153,053,413.18

Top-five supplier prepayment balance / 2016 / consolidated top five

RMB 107,242,692.44

Top-five share of supplier prepayments / 2016 / consolidated top five

68.61 percent

Trade payable category / 2016 / consolidated raw materials

RMB 333,733,793.7

Trade payable category / 2016 / consolidated equipment

RMB 462,968,707.8

Trade payable category / 2016 / consolidated construction

RMB 101,570,508.49

The related-party note distinguishes subsidiaries, associates, shareholder subsidiaries and other related parties. Its customer list must not be read as a list of factories owned by China Jushi. Sales of inventory products to Zhejiang Hengshi Fiber Base were CNY 588,018,369.72 in 2016, compared with CNY 409,064,874.53 in 2015; the same customer also bought raw materials of CNY 14,616,900.08 and water and power of CNY 4,332,496.45. These are separate transaction categories, not three disclosures of the same product sale. Other inventory-product sales included CNY 24,734,510.56 to Zhongfu Lianzhong and CNY 68,345,835.85 to CNBM International Trading. They document disclosed commercial relationships, without establishing exclusive supply, new orders, shipment specifications or customer ownership by the issuer. The management discussion separately reports related sales within the top-five customer subset; that subset cannot replace the full related-transaction note or be added to it as another sale. Prior-only rows and blank current cells remain unfilled rather than being treated as new 2016 transactions. Smaller transactions are retained in the underlying source without expanding research into each customer.

Related-party product sales / 2016 / zhejiang hengshi

RMB 588,018,369.72

Related-party material sales / 2016 / zhejiang hengshi

RMB 14,616,900.08

Related-party utility sales / 2016 / zhejiang hengshi

RMB 4,332,496.45

Related-party product sales / 2016 / zhongfu lianzhong

RMB 24,734,510.56

Related-party product sales / 2016 / cnbm international trading

RMB 68,345,835.85

Operating cash flow was positive CNY 3,169,081,426.53, while investing cash flow was negative CNY 2,493,795,145.21 and financing cash flow was negative CNY 1,661,228,032.38. Management links the increase in operating cash to lower cash payments for purchased goods and services, investing changes to increased payments for long-lived assets, and financing changes to lower borrowing receipts. These are net category cash flows, not the individual construction payments or a project-level funding balance. Monetary funds ended at CNY 1,854,648,483.23, down 43.63%; the report explains that the previous year-end had concentrated private-placement proceeds that were subsequently used. Fixed assets were CNY 12,768,530,461.88 and construction in progress was CNY 943,888,082.50. The report attributes much of the fixed-asset increase and construction decline to completion and transfer of the Tongxiang 360,000-tonne programme phase-I cold repair and Egypt phase-II 80,000-tonne line. Accounting transfer is distinct from new cash spending or proof of full-capacity output. The phase-I Tongxiang transfer also differs from the phase-II repair underway in the project narrative. Overseas assets of CNY 5,217,755,268.52 represented 21.80% of assets; that asset measure is not overseas revenue or freely available overseas cash.

Net cash from operating activities / 2016 / consolidated

RMB 3,169,081,426.53

Net cash from investing activities / 2016 / consolidated

RMB -2,493,795,145.21

Net cash from financing activities / 2016 / consolidated

RMB -1,661,228,032.38

Consolidated monetary funds / 2016 / consolidated

RMB 1,854,648,483.23

Net fixed assets / 2016 / consolidated

RMB 12,768,530,461.88

Consolidated construction in progress / 2016 / consolidated

RMB 943,888,082.5

Overseas assets / 2016 / consolidated

RMB 5,217,755,268.52

The treasury table lists five principal-protected bank products financed with temporarily idle placement proceeds. China Construction Bank’s Tongxiang branch products were 4.00 hundred-million CNY from 19 December 2016 to 15 March 2017, 2.00 from 22 December 2016 to 19 February 2017, and 5.00 from 30 December 2016 to 15 January 2017. Bank of China’s Tongxiang branch products were 0.60 hundred-million CNY from 22 December 2016 to 12 January 2017 and 2.40 from 30 December 2016 to 15 January 2017. The table’s total is 14.00 hundred-million CNY, equivalent to CNY 1.4 billion. These are specified placements and maturity dates, not five additional operating revenue streams or evidence that their proceeds were freely usable as cash at year-end. The actual recovered-principal, earned-return and impairment columns are blank in the original table; those blanks are not zero yields or proof of repayment. A separate overdue principal-and-return disclosure explicitly reports zero. The report labels the products principal-protected and approved through corporate procedures, without independently establishing future performance or current investment eligibility.

Reported treasury product principal / 2016 / ccb 20161219 20170315

RMB 400,000,000

Reported treasury product principal / 2016 / ccb 20161222 20170219

RMB 200,000,000

Reported treasury product principal / 2016 / ccb 20161230 20170115

RMB 500,000,000

Reported treasury product principal / 2016 / boc 20161222 20170112

RMB 60,000,000

Reported treasury product principal / 2016 / boc 20161230 20170115

RMB 240,000,000

Reported treasury product principal / 2016 / five product total

RMB 1,400,000,000

Overdue treasury principal and returns / 2016 / report defined

RMB 0

The financial statements cover the year from 1 January to 31 December 2016 and are presented in renminbi under Chinese Accounting Standards for Business Enterprises. Tianzhi issued an unmodified opinion on the parent and consolidated statements under report number 2017/5499, dated 18 March 2017; the board approved the financial statements for issue on that date. This is the issuer’s financial-statement audit, distinct from independent review of this English research. Consolidation is based on control and eliminates intra-group transactions, balances and unrealized internal profits. Parent accounts therefore cannot be added to subsidiary accounts to manufacture another group revenue or cash total. The organizational note identifies three direct subsidiaries, including Jushi Group, Beixin Technology Development and the new US manufacturing company, with 29 further subsidiaries below them. That legal-entity count is not a count of operating factories. The issuer’s principal disclosed activities include glass-fiber production and sales, building-material sales, and materials technology services. Its registered and headquarters office is at 669 Wenhua South Road, Wutong, Tongxiang, Zhejiang; this office disclosure does not verify a factory boundary or coordinates.

The report reclassified property tax, land-use tax and stamp duty incurred from 1 May 2016 from administrative expenses to taxes and surcharges. It increased consolidated taxes and surcharges and reduced consolidated administrative expenses by the same CNY 18,866,708.12; the corresponding parent-only reclassification was CNY 1,027,237.64. Taxes incurred before 1 May and comparative figures were not adjusted. This is a movement between expense lines, not an additional expense of that amount or a cash saving. Comparing administrative-cost growth or the taxes-and-surcharges line with 2015 requires this presentation boundary. The tax note also reports specific 15% income-tax concessions for Jushi Group, Jiujiang, Chengdu and the electronic-materials subsidiary, with different certifications or effective periods. Those are historical issuer disclosures tied to entities and conditions, rather than a single permanent rate for the group or a statement of today’s tax treatment.

Expense line reclassification / 2016 / consolidated admin to tax

RMB 18,866,708.12

Expense line reclassification / 2016 / parent admin to tax

RMB 1,027,237.64

Year-end gross trade receivables were CNY 1,450,423,411.47, with CNY 118,068,035.93 of allowance and CNY 1,332,355,375.54 net carrying value. The prior net balance was CNY 1,760,661,087.41. Of the closing gross balance, CNY 1,442,728,630.07 was assessed in the aging portfolio, including CNY 1,137,654,524.89 within one year and CNY 29,012,313.62 over five years. The disclosed aging provision rates rise from 1% within one year to 100% beyond five years. A separate CNY 7,694,781.40 of individually assessed smaller receivables was fully provided. Aging is not an assertion that every balance was contractually overdue. Annual receivable writeoffs were CNY 6,695,200.74; the named significant-writeoff subset totals CNY 5,642,795.59 and does not represent all writeoffs. The five largest closing debtors had CNY 182,620,094.42 of gross receivables, or 12.59% of the gross total, with CNY 20,754,692.92 of allowance. That balance-based concentration differs from annual customer sales concentration. The note identifies SUBOR BORU SAN. VE TIC. A.S and SUPERLIT BORU SAN A.S among these debtors, but receivable amounts do not establish new orders, current demand or exclusive customer relationships.

Trade receivables before allowance / 2016 / consolidated

RMB 1,450,423,411.47

Trade receivable expected-credit-loss allowance / 2016 / consolidated

RMB 118,068,035.93

Trade receivables after allowance / 2016 / consolidated

RMB 1,332,355,375.54

Gross trade receivables aged within one year / 2016 / consolidated aging portfolio

RMB 1,137,654,524.89

Accounts receivable aged more than five years / 2016 / consolidated aging portfolio

RMB 29,012,313.62

Individually assessed receivables, fully provided / 2016 / consolidated fully provided

RMB 7,694,781.4

Actual trade receivable write-offs / 2016 / consolidated

RMB 6,695,200.74

Top five debtor gross receivables / 2016 / consolidated top five

RMB 182,620,094.42

Top five debtor gross share / 2016 / consolidated top five

12.59 percent

Top five debtor allowance / 2016 / consolidated top five

RMB 20,754,692.92

Net inventories rose from CNY 1,240,591,005.21 to CNY 1,385,282,377.39. Closing gross inventories were CNY 1,385,342,322.16, with CNY 59,944.77 of write-down allowance. The closing net categories were raw materials of CNY 348,887,514.37, finished goods of CNY 981,746,821.80, reusable materials of CNY 32,921,053.27 and dispatched goods of CNY 21,726,987.95. These are monetary carrying values, not physical tonnes or an inventory-to-sales ratio. The report uses month-end weighted-average costing and lower-of-cost-and-net-realizable-value measurement. The allowance’s opening and closing balance is unchanged, while movement cells are blank; no invented zero charge or reversal is inserted. A small reported allowance does not establish that every product was readily saleable. The cash-flow reconciliation separately records a negative inventory adjustment of CNY 144,691,372.18. Balance-sheet movements and cash-flow adjustments have different reconciliation boundaries and are retained as separate reported figures.

Inventory before allowance / 2016 / consolidated

RMB 1,385,342,322.16

Inventory valuation allowance / 2016 / consolidated

RMB 59,944.77

Inventory after allowance / 2016 / consolidated

RMB 1,385,282,377.39

Raw materials net / 2016 / consolidated raw materials

RMB 348,887,514.37

Raw materials net / 2016 / consolidated finished goods

RMB 981,746,821.8

Raw materials net / 2016 / consolidated reusable materials

RMB 32,921,053.27

Raw materials net / 2016 / consolidated dispatched goods

RMB 21,726,987.95

The cash-flow note reports closing cash and cash equivalents of CNY 1,750,353,582.48, compared with CNY 2,853,785,300.04 at the start of the year. The closing amount reconciles to monetary funds of CNY 1,854,648,483.23 less CNY 104,294,900.75 of restricted money. The separate cash-equivalent investment row is blank; no additional investment balance is invented. The monetary-funds note reports CNY 257,677,305.06 held outside China, which is a geographic deposit measure, not all foreign-currency money or proof of immediate remittance to the parent. Other current assets include CNY 1,400,855,730.60 of bank treasury products and CNY 148,631,269.17 of uncredited VAT and prepaid taxes, totaling CNY 1,549,486,999.77. These products are classified separately from the cash-flow cash balance. Their carrying amount differs from the CNY 1,400,000,000 aggregate principal in the five governance-table products; the difference is not silently assigned to earned interest or a new purchase. The cash-flow note separately classifies CNY 58,694,166.87 of proceeds-fund and treasury income within other financing receipts. That annual receipt is not the return column for each year-end product, which remains blank in the governance table.

Cash and cash equivalents / 2016 / consolidated

RMB 1,750,353,582.48

Monetary funds held outside China / 2016 / consolidated

RMB 257,677,305.06

Bank treasury product carrying value / 2016 / consolidated

RMB 1,400,855,730.6

Uncredited VAT and prepaid taxes / 2016 / consolidated

RMB 148,631,269.17

Other current assets / 2016 / consolidated

RMB 1,549,486,999.77

Proceeds fund and treasury cash income / 2016 / consolidated financing receipts

RMB 58,694,166.87

The indirect cash-flow reconciliation starts with total consolidated net profit of CNY 1,528,719,094.69, including minority interests, and arrives at operating cash flow of CNY 3,169,081,426.53. Its reported depreciation adjustment is CNY 973,534,489.45. Working-capital adjustments include negative CNY 144,691,372.18 for inventories, negative CNY 95,644,086.54 for operating receivables and positive CNY 440,163,073.67 for operating payables. Thus higher operating cash than profit includes noncash expenses and liability/asset timing; it cannot be read as that much additional profit or as customer receipts alone. Operating receivables in this reconciliation are broader than the trade-receivable balance, so a fall in net trade receivables does not contradict a cash outflow in the broader adjustment. The operating-receipts note separately includes CNY 99,357,866.69 of government subsidy cash and CNY 62,195,593.55 released from operating-related restricted funds. The latter is released money, not new revenue. Government cash, recognized subsidy income and deferred project grants also have different periods and classifications; their full earnings comparison remains in the follow-up material.

Consolidated net profit, cash reconciliation / 2016 / consolidated

RMB 1,528,719,094.69

Cash-flow reconciliation depreciation / 2016 / consolidated

RMB 973,534,489.45

Inventory decrease in cash-flow reconciliation / 2016 / consolidated

RMB -144,691,372.18

Operating receivable decrease in cash-flow reconciliation / 2016 / consolidated

RMB -95,644,086.54

Operating payables increase adjustment / 2016 / consolidated

RMB 440,163,073.67

Government subsidy cash received / 2016 / consolidated

RMB 99,357,866.69

Operating restricted-fund release / 2016 / consolidated

RMB 62,195,593.55

Government subsidies recognized in nonoperating income were CNY 54,752,869.09, compared with CNY 59,875,946.16 in 2015. The disclosed list includes furnace-line upgrades, gas-cost subsidies, research and overseas-investment support, so this is support for specific activities rather than glass-fiber customer revenue. The cash-flow note separately reports CNY 99,357,866.69 of government-subsidy receipts. Cash received and current income are not interchangeable. The asset-related deferred-income note records CNY 45,000,000.00 received during 2016 for a 360,000-tonne intelligent-manufacturing application project, still deferred at year-end; its current-income cell is blank. A glass-fiber-waste reuse grant originally received in 2012 released CNY 395,002.40 to current income and closed at CNY 5,263,949.76. The combined deferred balance is CNY 50,263,949.76. These balances explain how industrial support can fund investment before all income is recognized. The 360,000-tonne grant label does not itself identify the separate intelligent-base groundbreaking, prove additional production capacity, or justify adding the grant to both current profit and current cash generation. Numerous smaller awards are condensed; they do not establish certifications, customer orders or environmental compliance.

Government grant income / 2016 / consolidated

RMB 54,752,869.09

Deferred industrial grant balance / 2016 / consolidated

RMB 50,263,949.76

Deferred industrial grant balance / 2016 / intelligent manufacturing application

RMB 45,000,000

Deferred industrial grant balance / 2016 / glass fiber waste reuse

RMB 5,263,949.76

Industrial grant income release / 2016 / glass fiber waste reuse

RMB 395,002.4

Interest expense in the finance-expense note fell from CNY 716,308,175.45 to CNY 436,771,751.30. Interest income is presented as negative CNY 88,838,953.43, offsetting expense; together with exchange loss of CNY 173,037,006.56 and other finance expense of CNY 15,409,690.91, the note totals CNY 536,379,495.34. This is an income-statement measure, distinct from closing interest payable, contractual debt payments and capitalized construction interest. The cash-flow reconciliation’s finance adjustment also has a separate scope and is not silently substituted for this total. Profit before tax was CNY 1,826,070,480.99; current tax expense of CNY 290,635,097.04 plus deferred tax expense of CNY 6,716,289.26 gives CNY 297,351,386.30 of total tax expense, leaving CNY 1,528,719,094.69 of total consolidated net profit. The tax bridge includes different subsidiary rates, prior-period adjustments and deductible-loss effects. It cannot be understood by applying a historical 15% concession uniformly to the whole group, or by treating accounting tax expense as cash tax paid. These distinctions let readers assess financing and tax effects on earnings while retaining the operating-business focus.

Interest expense / 2016 / consolidated

RMB 436,771,751.3

Finance expense / 2016 / consolidated

RMB 536,379,495.34

Profit before tax / 2016 / consolidated

RMB 1,826,070,480.99

Current tax expense / 2016 / consolidated

RMB 290,635,097.04

Deferred tax expense / 2016 / consolidated

RMB 6,716,289.26

Income-tax expense / 2016 / consolidated

RMB 297,351,386.3

The company bought logistics and industrial inputs from several disclosed related parties. Freight from Zhenshi Zhejiang Yushi International Logistics was CNY 217,685,411.71, compared with CNY 193,704,230.21 in 2015. Sichuan Yushi provided transport for sold products of CNY 36,889,777.14; Jiujiang Yushi freight was CNY 9,387,917.19; and Shanghai Tianshi freight was CNY 31,989,935.04. Tongxiang Huarui supplied equipment of CNY 37,118,068.02 and technical or procurement services of CNY 173,878.40. Raw-material purchases from Zhejiang Songyang Mingshi Mining were CNY 37,660,797.28. These are annual transaction amounts for named services and inputs, distinct from closing amounts still payable, factory capital budgets and the issuer’s top-five supplier concentration. The management table’s zero related purchases applies only to its top-five supplier subset, so it does not negate these related purchases elsewhere. In the original procurement table, Sichuan Yushi’s material-transport and vehicle-repair amounts appear only in the prior-year column; the current-year blanks are not filled with those prior amounts. These relationships show where related parties participate in the supply and distribution chain, without proving market pricing, an exclusive contract or a measured cost advantage.

Related-party logistics purchases / 2016 / zhejiang yushi

RMB 217,685,411.71

Related-party logistics purchases / 2016 / sichuan yushi sales transport

RMB 36,889,777.14

Related-party logistics purchases / 2016 / jiujiang yushi

RMB 9,387,917.19

Related-party logistics purchases / 2016 / shanghai tianshi

RMB 31,989,935.04

Related-party equipment purchases / 2016 / tongxiang huarui

RMB 37,118,068.02

Related-party raw material purchases / 2016 / songyang mingshi

RMB 37,660,797.28

The separate parent-company accounts report gross trade receivables of CNY 706,855,571.32, allowances of CNY 8,476,640.15 and a net carrying value of CNY 698,378,931.17. Balances due from Jushi Egypt of CNY 110,953,385.26 and Jushi Chengdu of CNY 91,119,232.93 total CNY 202,072,618.19 in the individually assessed category. The note says no allowance was made because they were related parties; that is the issuer’s stated accounting treatment, not proof collection is risk-free. The parent’s five largest debtor balances total CNY 273,470,119.20. Their printed total percentage is 34.69%, whereas the five displayed row percentages sum to 38.68% and the balance divided by reported gross parent receivables is approximately 38.69%. The source discrepancy remains visible; none of these parent measures replaces the consolidated external-customer concentration. Feicheng Sanying’s allowance is CNY 2,016,421.66 against CNY 39,749,607.23 of receivables, and the original cell prints 5.07%. Parent balances and subsidiary sales are not added to create another group total, because consolidation eliminates intra-group transactions and balances.

Trade receivables before allowance / 2016 / parent company

RMB 706,855,571.32

Trade receivable allowance / 2016 / parent company

RMB 8,476,640.15

Trade receivables after allowance / 2016 / parent company

RMB 698,378,931.17

Parent receivables from subsidiaries / 2016 / individually assessed

RMB 202,072,618.19

Parent top-five debtor balance / 2016 / parent top five

RMB 273,470,119.2

Parent reported top-five debtor share / 2016 / source printed total

34.69 percent

Parent long-term equity investments closed at CNY 10,069,272,554.83, comprising CNY 9,085,530,767.70 in subsidiaries and CNY 983,741,787.13 in associates or joint ventures. The subsidiary movement table records a CNY 900,000,000.00 addition to Jushi Group, raising its parent carrying value to CNY 8,995,170,009.39; Beixin Technology Development remains at CNY 90,360,758.31. An equity-investment movement is distinct from the internal loan balances and does not allocate spending to a specific factory. Parent associate investments include CNY 887,095,479.13 of additions, negative CNY 351,066.84 of equity-method results and CNY 39,730,060.39 of acquisition recognition. The last amount is already explained for the Zhongfu Lianzhong interest and is not another gain to count twice. Parent investment income totals negative CNY 351,066.84 in 2016; the cost-method income cell for 2016 is blank, while the CNY 1,000,000,000.00 cost-method figure belongs to 2015. The earlier dividend cannot be carried into current-year earnings merely because a related cash receipt appears elsewhere. Parent revenue of CNY 5,580,445,704.43 and operating cost of CNY 5,331,345,041.32 describe separate parent accounts and must not be added to consolidated revenue or costs. These boundaries explain how the listed parent holds and funds operating businesses while group operating performance is measured after consolidation.

Parent equity investment carrying value / 2016 / all equity investments

RMB 10,069,272,554.83

Parent equity investment carrying value / 2016 / subsidiaries

RMB 9,085,530,767.7

Parent equity investment carrying value / 2016 / associates joint ventures

RMB 983,741,787.13

Parent subsidiary equity addition / 2016 / jushi group

RMB 900,000,000

Parent investment income / 2016 / parent company

RMB -351,066.84

Revenue / 2016 / parent company

RMB 5,580,445,704.43

Operating cost / 2016 / parent company

RMB 5,331,345,041.32

The supplementary table reports CNY 58,752,306.68 of nonrecurring gains after its tax and minority-interest adjustments. Major components include government-grant income of CNY 54,752,869.09, the CNY 39,730,060.39 acquisition recognition associated with the Zhongfu Lianzhong investment, negative CNY 26,143,831.66 from noncurrent-asset disposals, and negative CNY 5,791,516.00 from the disclosed finance-related fair-value and disposal category. Other nonoperating net items of CNY 11,678,478.37 and another CNY 2,007,360.00 item are followed by negative tax and minority adjustments of CNY 16,299,515.18 and CNY 1,181,598.33. The aggregate is a classified earnings measure, not an additional cash receipt or an amount to add to consolidated profit. The grant, disposal and acquisition components are already discussed in their operating and investment contexts and are counted only once. Separating these effects helps readers understand earnings quality while keeping the main explanation focused on products, manufacturing, investment and funding.

Nonrecurring profit after adjustments / 2016 / consolidated after tax minority

RMB 58,752,306.68

The consolidated accounts report CNY 1,841,390,681.38 of receivable notes at year-end, comprising CNY 1,823,976,276.20 of bank-acceptance notes and CNY 17,414,405.18 of commercial-acceptance notes. This is a separate asset category from the trade-receivable balance and the cash-flow statement’s cash balance. The bank and commercial categories identify different acceptance types; their amounts alone do not establish that all notes are immediately available bank deposits or risk-free collections. Bank-acceptance notes of CNY 378,737,360.18 were pledged. The restriction therefore concerns a subset of note assets, not another receivable to add to the total or another cash payment. The company states that no endorsed or discounted notes remained outstanding at the balance-sheet date and that no notes had been transferred to trade receivables because the issuer of a note failed to perform. Those are dated statements for the designated categories, not guarantees of future collection or evidence of no credit risk elsewhere. Annual customer revenue, closing notes, trade receivables and pledged instruments must remain separate when examining the conversion of sales into usable funds.

Receivable notes balance / 2016 / consolidated

RMB 1,841,390,681.38

Receivable notes balance / 2016 / bank acceptance

RMB 1,823,976,276.2

Receivable notes balance / 2016 / commercial acceptance

RMB 17,414,405.18

Consolidated other receivables total CNY 96,383,626.76 before allowances of CNY 4,492,499.06, leaving CNY 91,891,127.70 of carrying value. These are separate from customer trade credit and the parent’s much larger internal subsidiary loans. The named individually assessed balances include CNY 27,000,000.00 and CNY 6,000,000.00 due from two finance lessors, classified in the debtor table as guarantee deposits, plus CNY 9,355,961.25 of export-tax refunds. The issuer says these named balances were recoverable and did not provide allowances; that assessment is not a guarantee of collection. The nature table separately gives CNY 45,066,601.65 of guarantee deposits and CNY 17,547,781.78 of other deposits across the account, with advances and staff imprests among the remaining categories. Named lessor amounts are subsets and are not added again to those nature totals. The broader export-refund category of CNY 9,375,915.46 also differs from the named individually assessed refund balance, so they are not silently equated. These balances explain funds tied to financing arrangements and operating requirements rather than additional glass-fiber sales or all freely available cash. Their classification does not allocate each deposit to a specific factory, disclose a repayment schedule or justify extending research into each counterparty.

Gross other receivables / 2016 / consolidated

RMB 96,383,626.76

Other receivable allowance / 2016 / consolidated

RMB 4,492,499.06

Net other receivables / 2016 / consolidated

RMB 91,891,127.7

Other receivable nature balance / 2016 / guarantee deposits

RMB 45,066,601.65

Other receivable nature balance / 2016 / other deposits

RMB 17,547,781.78

The available-for-sale investment note identifies a historical 10% cost-measured interest in Yantai Bohai Chemical Building Materials. Its gross balance and impairment allowance are both CNY 12,327,935.72 at the beginning and end of the year. The carrying-value cell and current-movement cells are blank; no new impairment charge or cash disposal is invented. This legacy investment differs from the new wind-blade and finance-leasing associate investments. The goodwill note separately reports unchanged gross goodwill of CNY 472,512,501.24, including CNY 176,839,725.90 associated with Tongxiang Jinshi precious-metal equipment and CNY 189,612,641.95 with Tongxiang Leishi powder processing. Those amounts are acquisition-related accounting balances, not the value of new factory construction, mineral reserves, production capacity or cash spending in 2016. The table is a gross-goodwill table and does not provide a separate impairment-testing calculation; unchanged gross amounts alone cannot establish that every acquired operation retained its economic value. Land-use and mining-right carrying amounts remain separately explained in industrial assets, without treating goodwill as another physical operating asset.

Legacy available-for-sale investment gross / 2016 / consolidated

RMB 12,327,935.72

Legacy available-for-sale investment allowance / 2016 / consolidated

RMB 12,327,935.72

Reported gross goodwill / 2016 / consolidated

RMB 472,512,501.24

Before offsetting, the deferred-tax note reports assets of CNY 57,183,001.68 and liabilities of CNY 89,962,022.04. Asset categories include receivable allowances, unrealized internal profit, depreciation differences and deductible operating losses. Liability categories include acquisition-related asset revaluation, depreciation differences and the investment accounting value above its tax basis. These are accounting and tax timing differences, separate from current tax expense and cash paid. The same note gives CNY 347,517,617.03 of deductible losses for which no deferred-tax asset was recognized, with disclosed expiries from 2017 through 2021. The losses are tax bases, not tax assets or refunds of the same amount; future use cannot be assumed. The policy recognizes deferred-tax assets only to the extent that sufficient future taxable profit is probable and calls for reassessment. Historical subsidiary concessions have different conditions and effective periods, so a single groupwide tax rate cannot be applied to all balances. This distinction matters when assessing how reported earnings and investments translate into cash, without forecasting future tax savings from the loss schedule.

Deferred tax assets before offset / 2016 / consolidated

RMB 57,183,001.68

Deferred tax liabilities before offset / 2016 / consolidated

RMB 89,962,022.04

Deductible losses without recognized deferred tax asset / 2016 / consolidated

RMB 347,517,617.03

The trade-receivable note records a current allowance charge of CNY 18,457,580.13 and the other-receivable note a charge of CNY 2,289,292.73; each states no recoveries or reversals. The impairment-expense note separately reports bad-debt losses of CNY 20,386,287.93. The two note charges do not sum to that expense total. Their original figures are retained without inventing another account, a foreign-exchange adjustment or an unexplained reversal to make the bridge close. Allowance movements, writeoffs and closing allowance balances are separate measures, not three amounts to add as current credit losses. Fixed-asset impairment expense of CNY 5,505,312.85 brings total asset-impairment expense to CNY 25,891,600.78, matching the fixed-asset note’s current provision. The cash-flow reconciliation adds noncash impairment back to profit; that adjustment does not erase credit risk or establish recovery of previously written-off customer balances. The disclosed difference remains a limit on a precise expense-to-movement reconciliation rather than proof of a new operating loss.

Current trade receivable allowance charge / 2016 / consolidated

RMB 18,457,580.13

Current other receivable allowance charge / 2016 / consolidated

RMB 2,289,292.73

Bad debt impairment expense / 2016 / consolidated

RMB 20,386,287.93

Fixed asset impairment expense / 2016 / consolidated

RMB 5,505,312.85

The issuer says roughly half of sales collections were settled in US dollars and describes forward foreign-exchange settlement contracts designated as cash-flow hedges. It assessed those contracts as highly effective; this is the company’s hedge assessment, not independent verification that all currency risk disappeared. The contracts were described as settling progressively during 2016–2017 with the underlying business contracts. The notes separately report CNY 1,100,216.51 of derivative assets and CNY 7,136,316.00 of forward-exchange liabilities at year-end. These are asset and liability carrying balances, not contract notional amounts, customer receipts or a complete net exposure calculation. The hedge note and fair-value note both identify negative CNY 5,791,516.00 recognized in current fair-value profit or loss. The same amount is not counted twice or treated as the entire exchange loss already reported in finance expense. Precious-metal forward investment income is another category and does not demonstrate foreign-currency customer collections. The historical policy’s accounting conditions and this dated hedge assessment do not establish the protection available for later years.

Derivative financial assets balance / 2016 / consolidated

RMB 1,100,216.51

Forward exchange liabilities balance / 2016 / consolidated

RMB 7,136,316

Selling expenses totaled CNY 295,479,170.05, including CNY 240,773,137.25 of transport costs. The delivery-cost category matters for a business with domestic and overseas sales, but does not identify transport volumes, routes, unit freight rates or each destination’s margin. Administrative expenses totaled CNY 655,768,663.13 and included CNY 254,614,013.61 of technology-development expense, compared with CNY 202,295,583.70 in 2015. This is the accounting-note expense category; it is not automatically a particular product’s development cost, capitalized technology asset or evidence of commercial orders. New-product and process claims remain tied to the separate management disclosures. Ordinary travel, meetings, publicity and office subcategories are condensed because their routine detail does not answer a distinct operating question. The property, land-use and stamp-tax reclassification already explained moves costs between administrative expenses and taxes and surcharges without changing total expense, so line-by-line comparisons with 2015 retain that boundary.

Selling expense / 2016 / consolidated

RMB 295,479,170.05

Transport within selling expenses / 2016 / consolidated

RMB 240,773,137.25

Administrative expense / 2016 / consolidated

RMB 655,768,663.13

Technology development expense / 2016 / consolidated

RMB 254,614,013.61

Advances from customers for goods fell from CNY 386,367,548.21 at the beginning of the year to CNY 80,815,714.54 at year-end. Including the separately stated other category, closing advances totaled CNY 80,826,269.79. Management attributes the balance decrease to lower advance payments for goods, without quantifying which products, customers or delivery periods caused the change. These are amounts carried as liabilities before the corresponding revenue is recognized, not an additional sales total or a disclosed backlog of confirmed orders. The note’s named balances older than one year total CNY 8,005,546.73 and are described by the issuer as not yet contractually due; age alone is not proof of overdue refunds or failed deliveries. The decline changes the funding provided by customer advances, but the two balance-sheet dates do not by themselves measure all cash received during the year or establish a collapse in demand. Supplier prepayments are a separate asset category; neither side is netted to invent a customer cash balance.

Customer goods advances / 2016 / consolidated

RMB 80,815,714.54

Customer goods advances / 2015 / consolidated opening

RMB 386,367,548.21

Customer advances total / 2016 / consolidated

RMB 80,826,269.79

Short-term borrowings were CNY 3,352,390,601.93, long-term borrowings were CNY 1,593,963,032.07 and the current portion of non-current liabilities was CNY 2,119,817,438.20. Management says the decline in long-term loans and bonds included transfers into amounts due within one year. A fall in the non-current classification therefore does not by itself establish repayment. The restricted-asset table totals CNY 3,933,195,221.52: monetary funds of CNY 104,294,900.75 pledged or deposited as security, receivable bills of CNY 378,737,360.18 securing bank acceptance bills, fixed assets of CNY 3,433,210,558.73 subject to mortgages or finance leases, and intangible assets of CNY 16,952,401.86 securing borrowing. Those are carrying values, not an additional debt principal or a measure of idle factories. The source table shows long-term payables of CNY 194,786,678.28, down from CNY 364,395,990.22. Its adjacent explanation nevertheless says they increased because matured finance leases were repaid. Original-page comparison confirms the conflicting direction; the table and wording are preserved rather than constructing a new repayment amount. Complete debt-note and maturity comparison remains pending.

Short-term borrowings / 2016 / consolidated

RMB 3,352,390,601.93

Non-current long-term borrowings after current-portion deduction / 2016 / consolidated

RMB 1,593,963,032.07

Current portions of non-current liabilities / 2016 / consolidated

RMB 2,119,817,438.2

Long-term payables / 2016 / consolidated

RMB 194,786,678.28

Restricted assets / 2016 / consolidated total

RMB 3,933,195,221.52

Restricted assets / 2016 / monetary funds

RMB 104,294,900.75

Restricted assets / 2016 / receivable bills

RMB 378,737,360.18

Restricted assets / 2016 / fixed assets

RMB 3,433,210,558.73

Restricted assets / 2016 / intangible assets

RMB 16,952,401.86

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. Interest was payable annually, with principal repaid at maturity; the report says the net issue proceeds had been used to repay bank loans. The historical bond name uses the company’s former China Fiberglass name and is not a new issuer or a separate factory project. The contract’s annual interest date is 17 October, but the report’s payment narrative states that the 2016 interest was paid on 7 October 2016 and refers to a 12 October announcement. Original-page comparison preserves that distinction without inventing a corrected payment date. The issuer reports an AA+ rating and stable outlook in a dated tracking report; it is not a current or independent SinoFilings assessment. The annual bank-credit discussion reports 305.00 hundred-million CNY of credit from more than thirty banks, 273.28 hundred-million CNY used and 114.51 hundred-million CNY of loan repayments in 2016. These reported measures do not supply a complete bridge to year-end drawn debt or unconditional available headroom. Rounded repayments in that paragraph also differ in precision from the cash-flow statement. The company describes timely contractual service; no future refinancing assurance is inferred.

Reported bond principal / 2016 / 2012 corporate bond

RMB 1,200,000,000

Reported bond coupon rate / 2016 / 2012 corporate bond

5.56 percent

Reported annual bank credit / 2016 / annual credit discussion

RMB 30,500,000,000

Reported annual bank credit used / 2016 / annual credit discussion

RMB 27,328,000,000

Reported rounded loan repayments / 2016 / annual credit discussion

RMB 11,451,000,000

Closing short-term bank borrowings were CNY 3,352,390,601.93, comprising CNY 313,244,000.00 secured by mortgages, CNY 1,497,432,829.63 backed by guarantees and CNY 1,541,713,772.30 of unsecured credit borrowings. Long-term borrowings outside current portions were CNY 1,593,963,032.07: CNY 112,193,282.07 mortgage-backed, CNY 1,011,102,300.00 guaranteed and CNY 470,667,450.00 unsecured. The long-term note gives interest ranges of 2.29–5.50% for mortgage-backed, 2.65–5.93% for guaranteed and 1.20–2.00% for unsecured loans. These are ranges for disclosed classes, not a single group borrowing cost or a commitment that every future loan is available at those rates. Guarantees and mortgages constrain different parties and assets. The restricted-asset note separately includes CNY 3,433,210,558.73 of fixed assets and CNY 16,952,401.86 of intangible assets under borrowing or leasing restrictions; these are carrying values, not the principal of the loans they support. Closing loan balances do not represent annual new funds raised, annual repayments or unused bank facilities.

Bank borrowing category / 2016 / short term mortgage

RMB 313,244,000

Bank borrowing category / 2016 / short term guaranteed

RMB 1,497,432,829.63

Bank borrowing category / 2016 / short term unsecured

RMB 1,541,713,772.3

Bank borrowing category / 2016 / long term mortgage

RMB 112,193,282.07

Bank borrowing category / 2016 / long term guaranteed

RMB 1,011,102,300

Bank borrowing category / 2016 / long term unsecured

RMB 470,667,450

Short-term financing paper closed at CNY 1,900,000,000.00, the same as the opening balance. The movement table lists five 2016 issues of CNY 600,000,000.00, CNY 400,000,000.00, CNY 400,000,000.00, CNY 500,000,000.00 and CNY 400,000,000.00. Their sum is CNY 2,300,000,000.00; this is a calculated total of the current-issue rows, whose aggregate cell is blank in the original. Repayments are reported as CNY 2,300,000,000.00, including the CNY 400,000,000.00 issue with a 90-day term. The remaining 2016 issues have stated terms of 268–270 days. The separate issuance-amount column totals CNY 4,200,000,000.00 across both 2015 and 2016 instruments; it is not 2016 new financing. Thus an unchanged outstanding balance can conceal substantial financing turnover and a need to replace maturing funds. Face-value interest accrued in this table totals CNY 62,245,242.40, while closing short-paper interest payable is CNY 25,264,194.44. An annual interest accrual, a closing payable and repayment principal are different measures and are not added as if all were new borrowing.

Short financing paper balance / 2016 / consolidated

RMB 1,900,000,000

Short financing paper issue / 2016 / 16 scp001

RMB 600,000,000

Short financing paper issue / 2016 / 16 scp002

RMB 400,000,000

Short financing paper issue / 2016 / 16 scp003

RMB 400,000,000

Short financing paper issue / 2016 / 16 scp004

RMB 500,000,000

Short financing paper issue / 2016 / 16 scp005

RMB 400,000,000

Short financing paper repayments / 2016 / consolidated

RMB 2,300,000,000

Short paper face-value interest accrual / 2016 / consolidated

RMB 62,245,242.4

Current portions of noncurrent liabilities total CNY 2,119,817,438.20: long-term bank loans of CNY 1,249,593,100.00, bonds of CNY 700,000,000.00 and finance-lease payables of CNY 170,224,338.20. These are separate from the noncurrent balances and must be included only once when examining upcoming funding needs. The noncurrent bond balance is CNY 1,493,037,788.28, comprising CNY 1,195,182,906.36 for the 2012 corporate bond and CNY 297,854,881.92 for the 2014 medium-term note. Their face values were CNY 1,200,000,000.00 and CNY 300,000,000.00 respectively; carrying values reflect a different accounting measure. The two private-placement notes with CNY 500,000,000.00 and CNY 200,000,000.00 of opening balances no longer appear in the closing noncurrent column. Their combined principal matches the current bond portion, but a change in classification is not evidence that those amounts were repaid in 2016. Reported bond discount amortization of CNY 2,317,853.16 is likewise an accounting movement, not another cash issue. Accrued interest payable across financing categories is CNY 67,466,891.89 at year-end and differs from annual interest expense.

Long-term loans due within one year / 2016 / consolidated

RMB 1,249,593,100

Current portion of bonds / 2016 / consolidated

RMB 700,000,000

Current finance lease payables / 2016 / consolidated

RMB 170,224,338.2

Bond carrying value / 2016 / 2012 corporate bond

RMB 1,195,182,906.36

Bond carrying value / 2016 / 2014 medium term note

RMB 297,854,881.92

Bond discount amortization / 2016 / consolidated

RMB 2,317,853.16

Accrued financing interest / 2016 / consolidated

RMB 67,466,891.89

The issuer states that 73.43% of its debt was due in less than one year at 31 December 2016, compared with 61.64% a year earlier. That reported debt measure is distinct from the statement that 26.60% of interest-bearing borrowings carried fixed rates, compared with 24.25% in 2015. Neither percentage is substituted for a calculated share of all balance-sheet liabilities. The maturity note is labelled an undiscounted contractual cash-flow analysis and allocates CNY 1,574,963,032.07 of noncurrent bank loans to one-to-five years and CNY 19,000,000.00 beyond five years. Many rows equal their corresponding carrying values; the English account retains the source label and does not invent additional interest cash flows or a fully reconciled debt schedule. The issuer describes revolving liquidity planning and a mix of funding instruments as its response to maturity risk. These are management practices, not proof refinancing cannot fail. Its reported liabilities-to-assets ratio of 53.84%, versus 59.34% in 2015, measures a broader balance-sheet relationship and cannot be used as the denominator of either maturity or fixed-rate share.

Reported debt due under one year / 2016 / source defined debt

73.43 percent

Reported fixed-rate borrowing share / 2016 / interest bearing borrowings

26.6 percent

Reported liabilities to assets / 2016 / consolidated liabilities assets

53.84 percent

Bank debt maturity bucket / 2016 / noncurrent bank one to five years

RMB 1,574,963,032.07

Bank debt maturity bucket / 2016 / noncurrent bank over five years

RMB 19,000,000

The finance-expense note reports an exchange loss of CNY 173,037,006.56 for 2016, compared with CNY 46,963,048.24 in 2015. Separately, translation of foreign financial statements generated CNY 72,922,819.07 before tax in other comprehensive income, with CNY 71,228,352.15 attributed to the parent. A positive translation movement is not a cash receipt or a reversal of the profit-and-loss exchange loss. The foreign-currency monetary note translates cash balances to CNY 438,984,138.27, trade receivables to CNY 895,046,274.95, short-term borrowings to CNY 1,542,390,601.93 and noncurrent bank borrowings to CNY 1,161,371,032.07. These are currency-classified balances, not necessarily all held outside China, and their sum is not a complete net currency exposure. Jushi Egypt uses the US dollar as its functional currency based on its trade-settlement pattern, despite being located in Suez, Egypt. The issuer describes matching forward foreign-exchange contracts with underlying transactions and adding foreign-currency debt for overseas operations as risk responses; those statements do not prove all exposure was eliminated. The original other-receivable row uses a Brazilian-real conversion rate of 1.8497, while other Brazilian-real rows print 2.1333. The original rates and reported values are retained without forcing a common rate or silently recasting the balances.

Exchange loss / 2016 / consolidated

RMB 173,037,006.56

Foreign statement translation movement / 2016 / consolidated before tax

RMB 72,922,819.07

Foreign currency monetary balance / 2016 / monetary funds

RMB 438,984,138.27

Foreign currency monetary balance / 2016 / trade receivables

RMB 895,046,274.95

Foreign currency monetary balance / 2016 / short term bank debt

RMB 1,542,390,601.93

Foreign currency monetary balance / 2016 / noncurrent bank debt

RMB 1,161,371,032.07

The finance-lease note reports future minimum payments of CNY 390,928,586.65 and unrecognized finance charges of CNY 25,917,570.17. Their difference reconciles to noncurrent finance-lease payables of CNY 194,786,678.28 plus the CNY 170,224,338.20 current portion. Minimum payments within one year are CNY 184,475,074.42; that contractual payment bucket differs from the current principal carrying value because the measures include different financing components. The filing describes two Jushi Group equipment sale-and-leasebacks each with a reported total rental amount of CNY 300,000,000.00 and separate initial rentals, over four- and five-year terms, as well as a Chengdu equipment arrangement with a 60-month term. It explicitly says the equipment remained in the operating companies’ possession and was not physically delivered to the lessors. These arrangements therefore do not demonstrate that a factory was sold and stopped production. They carry guarantees and scheduled financing obligations. Annual cash paid for finance leases was CNY 159,651,357.15, with CNY 3,300,000.00 of finance-lease fees. The financing cash-flow note’s sale-and-leaseback receipt of CNY 302,212,724.94 belongs to the comparative year, not a new 2016 receipt. Separately, minimum operating-lease commitments total CNY 17,654,996.77. Two asset-note tables print different accumulated depreciation for finance-leased buildings and transport equipment; the unexplained discrepancy is retained rather than merged into one asset figure.

Minimum finance-lease payments / 2016 / consolidated

RMB 390,928,586.65

Unrecognized finance lease charges / 2016 / consolidated

RMB 25,917,570.17

Minimum finance-lease payments / 2016 / within one year

RMB 184,475,074.42

Finance lease cash paid / 2016 / consolidated

RMB 159,651,357.15

Finance lease cash fees / 2016 / consolidated

RMB 3,300,000

Operating lease minimum commitments / 2016 / consolidated

RMB 17,654,996.77

Year-end trade receivables from related parties totaled CNY 22,555,004.45 with CNY 280,127.06 of allowances. The list includes CNY 7,351,392.44 due from Zhongfu Lianzhong and CNY 13,318,059.78 from Zhenshi Yongchang. Related prepayments were CNY 5,847,341.74, including CNY 5,167,000.00 for equipment from Hefei Zhongya. These closing balances differ from annual sales or purchases; a prepayment for equipment is not evidence of installed capacity or a completed delivery. Related trade payables totaled CNY 29,372,438.17, including CNY 16,629,470.90 for Huarui equipment and CNY 3,518,306.78 for Songyang Mingshi purchases. A disclosed payable is not automatically a financing loan or another expense to add to annual purchases. The table also contains prior-only balances; blanks in its current columns do not establish a new current transaction or prove repayment. The annual report’s specific related-balance categories remain separate from its subsidiary guarantees and the parent’s internal funding accounts. This permits readers to assess related operating exposure without turning every counterparty into a separate investigation.

Related trade receivables / 2016 / consolidated

RMB 22,555,004.45

Related trade receivable allowance / 2016 / consolidated

RMB 280,127.06

Related-party supplier prepayments / 2016 / consolidated

RMB 5,847,341.74

Related-party trade payables / 2016 / consolidated

RMB 29,372,438.17

Related-party trade payables / 2016 / tongxiang huarui

RMB 16,629,470.9

Related-party trade payables / 2016 / songyang mingshi

RMB 3,518,306.78

Parent-company other receivables were CNY 591,885,041.25 gross, with CNY 360.00 of allowances and a net carrying value of CNY 591,884,681.25. The nature table identifies CNY 580,000,000.00 of loan principal, compared with CNY 60,000,000.00 at the start of the year. Debtor rows allocate the closing principal to Jushi Chengdu at CNY 290,000,000.00, Jushi Jiujiang at CNY 270,000,000.00 and Jushi Group at CNY 20,000,000.00. These are parent-to-subsidiary balances; their increase is not an equal amount of consolidated external financing, annual loan disbursements, customer revenue or project spending. The parent note says these related balances were not provided for, and lists their age as within one year. That accounting policy and ageing do not establish when cash will be repaid. Other categories include CNY 9,355,961.25 of export-tax refunds, CNY 2,000,000.00 of deposits and CNY 529,080.00 of advances, showing why not every other receivable is a customer debt or internal loan. Readers should compare these internal allocations with the separately disclosed group borrowings, guarantees and construction programme, while retaining the parent-versus-consolidated boundary.

Gross other receivables / 2016 / parent company

RMB 591,885,041.25

Other receivable allowance / 2016 / parent company

RMB 360

Net other receivables / 2016 / parent company

RMB 591,884,681.25

Parent internal loan principal / 2016 / subsidiaries

RMB 580,000,000

Parent internal loan principal / 2016 / jushi chengdu

RMB 290,000,000

Parent internal loan principal / 2016 / jushi jiujiang

RMB 270,000,000

Parent internal loan principal / 2016 / jushi group

RMB 20,000,000

In 2016 the report says planning and design were fully underway for Tongxiang Leishi’s 600,000-tonne-per-year pyrophyllite powder expansion. This is a mineral-powder processing project, distinct from glass-fiber yarn output and from the 100,000-tonne unsaturated polyester resin project that had formally started construction. No powder commissioning date or actual production is stated in this management passage. Together with a wind-blade investment, these actions describe intended extension along the materials and composites chain; they do not establish that all the projects had commercial sales. The powder project is recorded here at its 2016 design stage. Comparison with later Leishi project descriptions is needed before treating their budgets, dates and physical capacity as a single continuous project record.

Year-end fixed assets had CNY 15,501,902,278.40 of gross value, CNY 2,726,605,455.28 of accumulated depreciation and CNY 6,766,361.24 of impairment, leaving CNY 12,768,530,461.88 of carrying value. The gross asset categories include CNY 6,331,974,293.15 of platinum-rhodium alloy, rather than only buildings and ordinary machinery. The alloy column has no depreciation amount printed; a blank does not justify inventing a zero expense or reconciling the separate cash-flow depreciation figure. Construction in progress closed at CNY 943,888,082.50, down from CNY 1,726,806,137.51. The important-project movement table covers CNY 845,244,765.92 of closing construction, while the broader construction note also includes other projects of CNY 98,643,316.58. Transfers to fixed assets in the important-project table total CNY 1,945,520,881.46, compared with CNY 2,628,065,671.62 in the complete fixed-asset additions note. Those different table boundaries are not reconciled by treating a transfer as cash spending or new nameplate capacity. Some assets were transferred back into construction for work; such accounting movements do not independently establish a shutdown duration. Land-use rights and mining rights carried CNY 344,891,751.36 and CNY 115,716,312.62 respectively, showing additional operating-resource categories without establishing land area, mineral reserves or current licence validity.

Reported gross fixed assets / 2016 / consolidated

RMB 15,501,902,278.4

Reported net fixed assets / 2016 / consolidated

RMB 12,768,530,461.88

Reported consolidated construction in progress / 2016 / consolidated

RMB 943,888,082.5

Important-project closing subtotal / 2016 / consolidated

RMB 845,244,765.92

Construction transfer to fixed assets / 2016 / consolidated

RMB 2,628,065,671.62

Important-project capitalization subtotal / 2016 / consolidated

RMB 1,945,520,881.46

The 360,000-tonne furnace-drawing technical-upgrade programme has separate phase I and phase II rows in the construction note. Phase II reports a budget of CNY 554,195,000.00, additions and year-end construction of CNY 598,862,634.97, a reported investment-to-budget ratio of 58.03% and engineering progress of 80%. The monetary balance divided by the printed budget does not reproduce the printed ratio. Phase I has a budget of CNY 494,099,600.00, reported investment ratio of 45.40% and engineering progress of 100%; its closing construction cell is blank after the disclosed transfers and other reductions. These source values are preserved without changing the budgets or equating engineering completion with full commercial utilization. A further narrative describes upgrading two 140,000-tonne lines to 180,000 tonnes each, a combined investment of 104,829.46 ten-thousand CNY and a two-year construction period starting in the fourth quarter of 2015. Its combined investment equals the two printed phase budgets, and the two resulting capacities total the programme headline. Those correspondences support comparison, but do not allocate every narrative milestone or cost to a particular phase, nor identify this programme with the separate intelligent-base groundbreaking.

Project budget / 2016 / construction note

RMB 554,195,000

Construction in progress at year-end / 2016 / construction note

RMB 598,862,634.97

Issuer-reported investment-to-budget ratio / 2016 / construction note

58.03 percent

Engineering progress / 2016 / construction note

80 percent

The Egyptian second 80,000-tonne line was described in management discussion as completed and in production during 2016. Its construction accounting row nevertheless reports engineering progress of 90%, a budget of CNY 1,156,526,600.00 and a reported investment ratio of 79.27%. Opening construction of CNY 685,208,632.13 plus additions of CNY 282,766,271.28, less CNY 945,424,101.87 transferred to fixed assets, leaves CNY 22,550,801.54 of construction at year-end. A production milestone and residual project accounting or wider engineering work therefore have different scopes; the report does not provide a reconciliation establishing what the remaining balance covered. It reports CNY 13,611,092.35 of current-period capitalized interest at 5.79%, with funding described as own funds and borrowing. Capitalized interest is a project accounting cost, not another measure of annual output or an additional capacity claim. The phase identifier and earlier 80,000-tonne scope keep this project distinct from Egyptian phase III.

Project budget / 2016 / construction note

RMB 1,156,526,600

Construction in progress at year-end / 2016 / construction note

RMB 22,550,801.54

Issuer-reported investment-to-budget ratio / 2016 / construction note

79.27 percent

Engineering progress / 2016 / construction note

90 percent

Reported construction carrying-value additions / 2016 / construction note

RMB 282,766,271.28

Reported transfer into fixed assets / 2016 / construction note

RMB 945,424,101.87

Project capitalized interest / 2016 / construction note

RMB 13,611,092.35

The third Egyptian line is a 40,000-tonne high-performance glass fiber project, with construction reported to have started in May 2016. The important-construction table reports a CNY 673,994,800.00 budget, CNY 161,930,881.05 of additions and closing construction, a reported investment ratio of 24.03% and engineering progress of 25%. Funding is described as own funds and borrowing. A separate narrative gives total investment of 10,995.02 ten-thousand US dollars and an approximate one-year construction period, while management expected completion and production in the second half of 2017. These are source-specific currency and timing disclosures; the English account does not invent an exchange-rate conversion, treat the different schedules as actual commissioning, or add the planned capacity to 2016 operating output. A shared Egyptian base does not merge the phase with the two 80,000-tonne lines.

Project budget / 2016 / construction note

RMB 673,994,800

Construction in progress at year-end / 2016 / construction note

RMB 161,930,881.05

Issuer-reported investment-to-budget ratio / 2016 / construction note

24.03 percent

Engineering progress / 2016 / construction note

25 percent

The 100,000-tonne unsaturated polyester resin project is intended to extend the group’s offering alongside glass fiber for composite materials. The construction note reports a CNY 186,417,500.00 budget, CNY 7,650,509.86 of additions and closing construction, a reported investment ratio of 4.10% and engineering progress of 5%, funded by own resources and borrowing. The later narrative repeats total investment as 18,641.75 ten-thousand CNY and says construction started at the end of 2016 with an approximate one-year period. The construction table calls it a production-line modification project, while the narrative describes building a line. The disclosed capacity and matching budget link these descriptions to the existing resin-project record, with the wording difference retained. Product development, process design and equipment selection remained underway in the management discussion. This establishes intended product-chain expansion and spending at an early stage, rather than completed output, customer orders or a demonstrated sales contribution.

Project budget / 2016 / construction note

RMB 186,417,500

Construction in progress at year-end / 2016 / construction note

RMB 7,650,509.86

Issuer-reported investment-to-budget ratio / 2016 / construction note

4.1 percent

Engineering progress / 2016 / construction note

5 percent

The management discussion dates the United States 80,000-tonne-per-year glass-fiber line’s groundbreaking and entry into substantive construction to 8 December 2016 local time. The financial note separately says the US project started construction in the first quarter of 2017. Both descriptions belong to the same stated line capacity, but the annual report does not reconcile the construction wording. They remain dated milestones rather than being forced into one start date. The financial note gives total investment of 205,263.27 ten-thousand CNY, financed by company funds and bank borrowing, with completion expected before the end of 2018. That budget is a plan, not cash spent in 2016, a committed loan facility or an actual completion result. Management’s rationale was to supply overseas customers from local production; a sales network or groundbreaking does not establish commercial US output. This description is attached to the existing US 80,000-tonne project record, without adding its planned capacity a second time.

Reported project narrative budget / 2016 / us 80kt financial note

RMB 2,052,632,700

The financial note describes a Jushi Jiujiang 120,000-tonne-per-year alkali-free glass-fiber furnace-drawing project as having started construction at the end of 2016. It reports investment of 101,295.39 ten-thousand CNY and an approximate one-year construction period. This is a disclosed project start and intended scale, not evidence that the line produced that amount in 2016 or that the planned completion occurred. Separately, Tongxiang Leishi’s 600,000-tonne-per-year pyrophyllite powder project has investment of 33,600.00 ten-thousand CNY, with a first-quarter 2017 start expected and an approximate two-year construction period. The management discussion’s 2016 planning and design therefore must be distinguished from the later expected start. Powder processing supports the mineral-material chain and is not another 600,000 tonnes of glass-fiber yarn. Shared company, location or capacity wording alone does not establish that every later Jiujiang or Leishi project disclosure is the same physical line; unresolved cross-year identity remains separate from the facts reported here. The report supplies no actual completion, customer delivery or utilization result for these two projects in these passages.

Reported business project budget / 2016 / jiujiang 120kt financial note

RMB 1,012,953,900

Reported business project budget / 2016 / leishi 600kt financial note

RMB 336,000,000

The company acquired a 26.52% interest in Lianyungang Zhongfu Lianzhong Composite Materials Group, which manufactures and sells wind-turbine blades. The reported cash price was 78,659.55 ten-thousand CNY, equivalent to CNY 786.5955 million. This is consideration for an equity interest, not glass-fiber revenue or construction spending. It separately held 20.10% of Guangrongda Financial Leasing, whose business was leasing. The major-company table distinguishes wholly owned Jushi Group and Beixin Technology Development from these partial holdings. Zhongfu’s reported revenue and profit are figures for the invested company, not wholly owned subsidiary sales to add to listed-group revenue; holding percentage alone is not a cash-dividend entitlement already received. Management attributes the rise in long-term equity investments to these additions. The intended downstream integration is stated as the issuer’s strategy, without inferring exclusive supply contracts, new blade orders or undertaking a separate investigation of the counterparties.

Reported equity interest / 2016 / zhongfu lianzhong

26.52 percent

Reported equity purchase consideration / 2016 / zhongfu lianzhong

RMB 786,595,500

Reported equity interest / 2016 / guangrongda financial leasing

20.1 percent

The financial note gives the cash price for the 26.52% Zhongfu Lianzhong wind-blade interest as CNY 786,595,479.13. This differs by CNY 20.87 from the amount implied by management’s rounded 78,659.55 ten-thousand CNY disclosure; both are retained with their precision. The note recognized CNY 39,730,060.39 of nonoperating income because its acquisition recognition base was CNY 826,325,539.52. Purchase price plus that recognition equals the closing equity-investment carrying amount; the gain is not recurring equity-method profit, a customer sale or a cash dividend. The associate information table reports investee parent equity of CNY 2,883,632,473.11, a proportionate net-asset share of CNY 764,739,331.87 and the investment carrying amount of CNY 826,325,539.52. These measures do not have interchangeable scopes, and the carrying amount is not the whole investee’s net assets. The reported investee revenue of CNY 2,387,274,862.82 and net profit of CNY 332,621,744.68 describe the invested business, not figures to add in full to listed-group sales or shareholder earnings. The filing also describes a further 5.52% purchase agreed on 25 January 2017 for CNY 157,025,209.00; that subsequent event is distinct from the 2016 completed interest. No new wind-blade contracts or exclusive glass-fiber supply relationship are inferred.

Equity-method investment additions / 2016 / zhongfu lianzhong

RMB 786,595,479.13

Associate acquisition nonoperating gain / 2016 / zhongfu lianzhong

RMB 39,730,060.39

Equity-method investment carrying value / 2016 / zhongfu lianzhong

RMB 826,325,539.52

Reported share of associate net assets / 2016 / zhongfu lianzhong

RMB 764,739,331.87

Reported investee revenue / 2016 / zhongfu lianzhong

RMB 2,387,274,862.82

Reported investee net profit / 2016 / zhongfu lianzhong

RMB 332,621,744.68

The annual report lists several legal-entity liquidations at its disclosure stage. Tongxiang Jushi Import and Export published a liquidation notice on 7 December 2016; Beijing Luxin Jiayuan Home Furnishing Market published one on 20 January 2017, with liquidation work still proceeding. It also says Jushi Group’s Licheng Hong Kong company, Jushi Singapore and the South Africa Huaxia entity began liquidation work in the first quarter of 2017. These are different dates and stages, not five completed closures during 2016. The note does not allocate a disposal gain, liquidation cash return, production capacity reduction or replacement trading route to each entity. A trading or home-furnishing entity’s liquidation cannot by itself establish that a glass-fiber factory stopped production. The disclosed changes are retained as organizational context alongside the manufacturing expansion, without investigating the counterparties or inventing an operational effect. The further Zhongfu Lianzhong purchase and share-unlock events are described separately; the release of existing restricted shares is not another new share issue.

The report describes improving furnace melting and fiber-drawing yield, larger output per furnace position and greater automation as mechanisms for reducing consumption and labor cost. It reports domestic application of pure-oxygen combustion and waste-fiber reuse, and a biomembrane wastewater-treatment system processing 4,800 tonnes per day to support water reuse. These issuer statements explain process and resource measures; they do not disclose verified savings for each individual site or establish compliance with every permit. Production uses electricity, natural gas, minerals and chemical auxiliaries. The risk discussion stresses the continuous nature of tank furnaces and describes gas stations, storage tanks and vehicle-based backup gas; emergency fuel could, according to management, reach bases within two to twelve hours. That is a stated contingency capability, not an independently tested outage tolerance. Supply or price disruption could affect production and cost. Generic environmental awards and staff activities add no comparable operating explanation and remain outside this reader narrative.

The employee table covers the parent and major subsidiaries: 99 employees at the parent and 9,040 at major subsidiaries, totaling 9,139. Its occupational categories were 5,988 production workers, 1,481 technical staff, 93 sales staff, 67 finance staff and 1,510 administrative staff. These counts explain a manufacturing-heavy workforce, while the separate research disclosure’s 849 R&D employees is not interchangeable with all technical personnel. The report also discloses 114.81 ten-thousand hours of outsourced work, equivalent to 1,148,100 hours, and compensation of 1,652 ten-thousand CNY, equivalent to CNY 16.52 million. Outsourced hours are not a count of additional employees; the report does not allocate them by factory or product. Planned training includes operating-role certification and renewal to support qualified workers at posts, but session counts and attendance targets do not demonstrate realized productivity or lower defect rates. Ordinary welfare and activity records remain in the source archive. No precise factory productivity or shortage estimate is inferred from these group-level figures.

Reported employee count / 2016 / parent company

99 people

Reported employee count / 2016 / major subsidiaries

9,040 people

Reported employee count / 2016 / parent and major subsidiaries

9,139 people

Reported employee count / 2016 / production

5,988 people

Reported employee count / 2016 / technical

1,481 people

Reported employee count / 2016 / sales

93 people

Reported employee count / 2016 / finance

67 people

Reported employee count / 2016 / administrative

1,510 people

Outsourced labour hours / 2016 / report defined

1,148,100 hours

Reported outsourced labor compensation / 2016 / report defined

RMB 16,520,000

The annual report places glass-fiber manufacturing within the building-materials industry and identifies the industry as classified as heavily polluting for environmental supervision. It says the company passed cleaner-production review in 2007 and a second review in December 2012. For 2016 it reports no major environmental problems and compliant discharges at all production bases. These are issuer statements in the annual report. The passage does not provide each site’s discharge quantities, pollutant limits, monitoring results or permit conditions. It therefore cannot support an independently verified claim that every operating requirement was satisfied or a quantified reduction in pollution. The separately reported water-reuse, pure-oxygen and waste-fiber measures describe operational mechanisms, while this passage states a compliance outcome without the detailed site measurements needed to test it.

The 2016 report cites combined EU anti-dumping and countervailing duties of 24.8% for Jushi Group from 24 December 2014 to March 2016. It describes a fifteen-month expiry review and a 7 March 2017 disclosure proposing continuation of anti-dumping duties, with the final decision expected in the first half of 2017. This is post-year-end information included in the report, not proof that the later final decision had already occurred in 2016 or a verified current shipment tariff. Management expected Egypt-origin supply to reduce exposure to trade restrictions; an overseas sales office alone does not establish non-China production origin. The risk passage dates ignition and production of Egypt’s first 80,000-tonne line to November 2013, whereas the business discussion describes successful completion and production in 2014. These are preserved as separately labeled milestones. It dates Egypt phase-II ignition and production to June 2016 and describes stable production at the report’s disclosure stage. They do not establish full capacity output for the whole year. Export-rebate and Jushi Group high-technology tax-qualification references are historical and entity-specific. Selective forward exchange transactions are described as a response to currency risk, without evidence of complete hedging effectiveness.

The guarantee table reports CNY 10,473,820,000 of subsidiary-guarantee activity during 2016 and CNY 4,359,470,000 outstanding at year-end. The table explicitly reports zero guarantees outstanding outside subsidiaries and says all company guarantees were for subsidiaries. Its stated guarantee-to-net-assets ratio was 39.75%. A CNY 950,300,000 subset supported borrowers with debt-to-asset ratios above 70%; that subset is not additional to the total. Guarantees are support obligations, not construction cash paid or a separate amount to add mechanically to the underlying consolidated debt. Annual guarantee activity and the closing balance measure different things, and neither number alone proves a guarantee was called. The report also states zero guarantees for shareholders, the actual controller and their related parties in the designated category. That category-specific disclosure does not establish the absence of every other related-party financing exposure.

Subsidiary guarantee activity / 2016 / subsidiaries

RMB 10,473,820,000

Guarantee balance / 2016 / subsidiaries

RMB 4,359,470,000

Guarantee balance / 2016 / outside subsidiaries

RMB 0

Guarantee balance / 2016 / borrowers over 70 percent debt assets

RMB 950,300,000

Reported guarantees to net assets ratio / 2016 / report defined

39.75 percent

The financial note identifies the historical EU investigations as applying to specified continuous-filament glass-fiber products originating in China: chopped strands no longer than 50 millimetres, glass-fiber rovings with the stated exclusion for impregnated and coated rovings having combustible content above 3%, and glass-fiber mats with the stated glass-wool exclusion. It reports a combined anti-dumping and countervailing rate of 24.8% for Jushi Group with a 24 December 2014 to March 2016 period, followed by review still awaiting a final result in that note. The management discussion additionally includes a March 2017 review update. These source passages have different disclosure stages and do not establish that the final later decision had already occurred in 2016. The product exclusions and Chinese production-origin scope mean the rate cannot be assigned to every glass-fiber product, every destination or every overseas sales subsidiary. Egypt-origin manufacturing was management’s stated response to trade exposure, while an overseas sales office alone does not change a product’s origin. This is an account of the annual report’s historical trade context, not a determination of duties applicable to a current shipment.

The report proposes a cash distribution for FY2016 of CNY 608,039,383.50 before tax, or CNY 2.50 per ten shares, using 2,432,157,534 shares as the base. It also proposes two additional shares per ten existing shares through capitalization of capital reserves, totaling 486,431,507 new shares. Capital-reserve capitalization reallocates equity; it is not new cash raised or an operating profit. The board approved these proposals on 18 March 2017 for submission to shareholders. They were not already implemented FY2016 cash payments at that disclosure stage. Parent-company profit for 2016 was CNY 200,597,527.83, while available distributable profits were CNY 788,144,042.30. The proposed payout therefore needs the retained-profit context rather than a comparison solely with current parent profit. The table’s 39.98% payout ratio instead uses consolidated attributable profit of CNY 1,521,035,120.66. These parent and consolidated profit scopes differ. The previous FY2015 cash distribution of CNY 344,924,159.42 and twelve-for-ten capital-reserve share capitalization were implemented on 17 May 2016. Distribution-year labels, board approval and actual payment remain separate.

Proposed cash distribution / 2016 / fy2016 proposal

RMB 608,039,383.5

Parent net profit / 2016 / parent company

RMB 200,597,527.83

Distributable profit / 2016 / parent company

RMB 788,144,042.3

Profit attributable to shareholders / 2016 / consolidated

RMB 1,521,035,120.66

Proposed capital-reserve shares / 2016 / fy2016 proposal

486,431,507 shares

Proposed dividend to attributable profit / 2016 / consolidated attributable profit

39.98 percent

China National Building Material Company Limited, the listed shareholder referred to here as CNBM Company, held 656,009,497 shares, or 26.97%, and was identified as the controlling shareholder. CNBM Group was the ultimate parent identified in the separate control discussion. The report describes a change in that ultimate parent’s Chinese registered name on 25 November 2016 following the CNBM/Sinoma reorganization and refers to a 9 March 2017 announcement about completed registration. This does not make CNBM Company and CNBM Group the same entity or establish that China Jushi was wholly owned. Zhenshi Holding held 379,256,291 shares, or 15.59%, with 334,194,432 shares pledged. This is a shareholder pledge, distinct from the group’s own restricted operating assets. The report says CNBM Company, Zhenshi, Pearl Success and Surest were not related or acting in concert under the cited disclosure rules; it leaves relationships among other shareholders unknown. Original tables show Xintai Life’s holding as 53,372,148 shares in the top-ten table but 53,372,147 in the restriction tables. The one-share difference is retained without choosing a corrected amount or identifying an undisclosed transaction.

Shareholder shares / 2016 / cnbm company

656,009,497 shares

Shareholder ownership / 2016 / cnbm company

26.97 percent

Shareholder shares / 2016 / zhenshi holding

379,256,291 shares

Shareholder ownership / 2016 / zhenshi holding

15.59 percent

Shareholder pledged shares / 2016 / zhenshi holding

334,194,432 shares

The important-matters section treats the 26.52% Zhongfu Lianzhong purchase as a related equity acquisition and states that transfer registration was completed on 7 December 2016. The cash consideration and invested-company operating scope are retained in the separate investment explanation. This registration milestone establishes the reported formal transfer stage; it is not a new cash payment on top of the stated consideration or proof of additional wind-blade orders. The ordinary related-transaction section mainly refers to approval of expected transactions and an earlier announcement. That approval is not a substitute for the actual related sales, purchases and closing balances disclosed in the financial notes, which remain to be compared.

The report says CNBM Company and Zhenshi fulfilled their earlier share-increase and restricted-sale commitments during the applicable periods. That dated statement does not promise future share purchases or establish that every shareholder-related risk was absent. Historical role disclosures show executives holding positions at CNBM Company or Zhenshi alongside roles in China Jushi or Jushi Group, providing context for shareholder influence and related operations. Routine biographies, attendance tables and committee procedures are compressed rather than presented as proof of effective oversight. The annual report says Tianzhi’s separate internal-control audit had an unmodified opinion. This is the issuer’s account of that audit; the annual-report passage does not itself reproduce the full internal-control report or independently approve SinoFilings’ English research. The financial-statement audit and substantive related-party figures require their own source comparison.

The share-change explanation says private-placement registration was completed on 7 January 2016, increasing registered shares from 872,629,500 to 1,105,526,152. The issue comprised 232,896,652 shares at CNY 20.61 per share; the report quotes gross proceeds as 48.00 hundred-million CNY, a rounded CNY 4.8 billion. Registration in 2016 is distinct from when the proceeds entered cash: the operating discussion attributes the previous year-end’s monetary-fund balance to concentrated placement receipts. The comparative consolidated balance sheet already shows CNY 1,105,526,152 of share capital at the 2015 year-end; the registration and accounting presentations are kept separately rather than treating the issue as a second receipt. Reserve capitalization added 1,326,631,382 shares in 2016 and brought total shares to 2,432,157,534. At year-end the share-change table records 512,372,634 restricted shares, or 21.07% of the total. The restriction tables state 8 January 2017 as the release date and a twelve-month lockup. Those reported dates do not establish actual trading or subsequent disposals by each holder.

Private-placement shares / 2016 / 2015 placement registered 2016

232,896,652 shares

Private-placement issue price / 2016 / 2015 placement registered 2016

20.61 CNY-per-share

Reported gross placement proceeds / 2016 / 2015 placement registration report

RMB 4,800,000,000

Shares outstanding / 2016 / registered year end

2,432,157,534 shares

Restricted shares / 2016 / registered year end

512,372,634 shares