China Jushi | FY2017 business review

Jushi manufactured glass fiber and related products, with fiber yarn its principal product. This business generated RMB 8.427139863 billion, or 97.41% of total revenue. Bulk raw-material procurement covered Tongxiang, Chengdu, Jiujiang and Egypt through joint negotiation and separate contracts. Domestic sales were mainly direct; overseas sales combined trading subsidiaries, distributors and direct sales. Production followed sales through a flexible scheduling model. The four-base description concerns the operating purchasing network in this report.

The company sought higher-value applications in new energy, energy-efficient buildings, vehicle lightweighting and electronic information. Product research included high-pressure pipe yarn and the development and performance improvement of shaped glass fibers. It participated in four national standards and led two covering chopped-strand flowability and roving antistatic performance. These disclosures explain both the target markets and technical work; research progress and standards participation are not shipment figures for the new products.

R&D investment was RMB 252,717,051.38, entirely expensed, equal to 2.92% of revenue. The company listed 1,153 research personnel, 11.85% of its workforce. Application research targeted larger wind blades, long-distance high-pressure desalination-water pipes, offshore structures and lighter vehicles. The report presents these as directions for materials development, rather than proof that each application had generated a specified volume of commercial orders.

The company describes growing E7 sales after several years of market development and says E8 achieved efficient production in a furnace of ten-thousand-tonne scale. These disclosures distinguish commercial sales development from the ability to manufacture a high-modulus formulation in a large furnace. The text does not provide an E7 sales baseline, E8 realised output, customer certification schedule or separate margin. Its assertions of technical leadership and superiority over competitors are management claims, not independently verified comparative tests. The application discussion connects glass-fiber-reinforced plastics to vehicle parts and wind-power components and describes electronic glass fiber as an input to copper-clad laminates, which in turn are used for printed circuit boards. China Jushi manufactures upstream materials; these application links do not establish that it builds vehicles, wind turbines or circuit boards. High-pressure pipe yarn and shaped-fiber development are described separately from orders. Generic market forecasts and projected vehicle or PCB industry growth are not treated as company sales commitments.

Under the 2017 policy, spending in the research phase is expensed when incurred. Development spending becomes an intangible asset only when all five conditions are met: technical feasibility of completion; intention to complete and use or sell; evidence of economic benefits, such as a market or demonstrable internal usefulness; sufficient technical, financial and other resources; and reliable measurement of the attributable development expenditure. A technology programme or reported research achievement therefore is not itself evidence of capitalised spending, customer delivery or commercial profit. Finite-life intangible assets are amortised systematically over their useful lives, using the straight-line method when the expected benefit pattern cannot be determined reliably. The disclosed periods are 40–70 years for land-use rights, ten years each for trademarks, patents and non-patented technology, and five years for financial software. Mining-right amortisation follows actual extraction and reserves, rather than a stated fixed number of years. These are historical accounting periods and do not independently verify a specific site’s title, mineral reserves or technology’s economic life. Indefinite-life intangibles and assets not yet ready for use are tested for impairment annually; finite-life assets are tested when impairment indicators exist. The policy describes recognition and testing rules, not proof that all technology investments recovered their cost.

Operating revenue reached RMB 8,651,549,179.12, up 16.19%. Management attributed the increase mainly to higher sales volumes and linked higher production costs to materials and labour associated with those volumes. Sales work included developing larger customers, more responsive services and a trial of online sales. The operating account connects manufacturing and market development without allocating the entire growth to any one product, customer or investment.

The company completed acquisitions giving it a total 32.04% interest in Lianyungang Zhongfu Lianzhong Composite Materials Group. The annual report identifies the investee's main product as wind-turbine blades. The investment extends the group's participation downstream from reinforcement materials into blade manufacturing. An equity interest is recorded as a business relationship; it does not by itself establish that all of the investee's fiber purchases came from Jushi.

The report links three different moves to industrial integration: the Leishi pyrophyllite-powder project supports upstream inputs, the unsaturated polyester resin line offers a complementary material for composite solutions, and the investment in Zhongfu Lianzhong extends participation into wind-blade manufacturing. Their powder, resin and glass-fiber tonnes are not interchangeable and should not be combined into one fiber-capacity total. For the blade investment, the issuer purchased an additional 5.52% from WISE-WIN TECHNOLOGY LIMITED for CNY 157,175,200 in cash and held 32.04% at year end. The incremental purchased percentage is not the final stake, and the price is not the investee's revenue, profit or a factory-construction budget. Ownership does not establish an exclusive supply relationship or justify attributing the investee's entire sales to China Jushi. The Tongxiang intelligent-base proposal remains a phased five-year plan, while Egypt phase III is expressly described as producing and the US project as under construction. The 2018 project list separately specifies an Indian 100,000-tonne furnace-drawing proposal; the brief current-year progress statement does not establish Indian commissioning.

Acquired equity share / 2017 / zhongfu lianzhong incremental purchase

5.52 percent

Equity acquisition price / 2017 / zhongfu lianzhong incremental purchase

RMB 157,175,200

Net fixed assets were CNY 13,415,339,996.11 at year end, up 5.07%, while construction in progress rose 32.83% to CNY 1,253,781,518.92. Management attributes the changes to completed new or upgraded lines and investment in projects including the US80,000-tonne and Jiujiang 120,000-tonne lines; these are aggregate asset accounts, not spending allocated to either project. Prepayments doubled to CNY 317,865,067.80, primarily because of advance construction payments. Short-term loans increased to CNY 4,493,031,536.79 as the company reduced bond financing, and long-term loans rose to CNY 2,624,378,680.00 with construction funding needs. Amounts of non-current liabilities due within a year, supplier notes and lease balances have separate classifications and must not be omitted when assessing the wider funding position. The management table lists CNY 1,900,899,292.19 of restricted assets: cash deposits or pledges, mortgaged or leased fixed assets and land pledged for loans. That total is collateral carrying value, not additional debt, freely available cash or a guarantee payment. Deferred-tax changes are accounting timing effects, not cash refunds or new project funds.

Net fixed assets / 2017 / consolidated

RMB 13,415,339,996.11

Consolidated construction in progress / 2017 / consolidated

RMB 1,253,781,518.92

Prepayments / 2017 / consolidated

RMB 317,865,067.8

Short-term borrowings / 2017 / consolidated

RMB 4,493,031,536.79

Non-current long-term borrowings after current-portion deduction / 2017 / consolidated

RMB 2,624,378,680

Restricted assets / 2017 / management summary

RMB 1,900,899,292.19

Bank wealth-management placements using raised funds had CNY 4,253,000,000 of occurrence and CNY 158,000,000 not yet matured. Placements using the company’s own funds had CNY 600,000,000 of occurrence and CNY 400,000,000 outstanding. The individual list supports the year-end amounts with raised-fund placements of CNY 18 million and CNY 140 million and own-fund placements of CNY 100 million and CNY 300 million, all maturing in 2018. The CNY 4,853,000,000 aggregate occurrence is a flow of placements, not CNY 4.853 billion still available at year end; outstanding placements totaled CNY 558 million. The list gives CNY 34,546,139.43 as actual income or loss, separately from principal and future contractual yields. The summary reported no overdue unrecovered amounts for these products, which does not mean that every group receivable was collected or that future returns were guaranteed. Historical bank-product labels and rates are not current investment recommendations. Individual bank counterparties are retained as source detail without extending research into them.

Wealth-management occurrence / 2017 / raised funds

RMB 4,253,000,000

Wealth-management balance / 2017 / raised funds

RMB 158,000,000

Wealth-management occurrence / 2017 / own funds

RMB 600,000,000

Wealth-management balance / 2017 / own funds

RMB 400,000,000

Wealth-management return / 2017 / listed actual income or loss

RMB 34,546,139.43

The 2012 glass-fiber company bond had CNY 1,200,000,000 outstanding, a 5.56% annual simple-interest coupon and a 17 October 2019 maturity. The report says the interest for 17 October 2016 through 16 October 2017 was paid on 17 October 2017. Its proceeds had already been used to repay bank loans under the prospectus, so this historical bond is not new 2017 proceeds or cash earmarked for a named production line. The issuer separately reported bank credit of CNY 36.9 billion, of which CNY 27.7 billion had been used, and CNY 6.527 billion of bank-loan repayments during 2017. Used credit does not automatically equal outstanding bank loans, and the arithmetic remainder is not assumed to be unrestricted cash or an irrevocably committed facility. Management says loans and interest were paid on time; the dated AA+ credit rating and payment record do not guarantee future solvency. The credit and debt perimeters require comparison with the complete financial notes, which remain under review.

Bond balance / 2017 / 2012 company bond

RMB 1,200,000,000

Bond coupon / 2017 / 2012 company bond

5.56 percent

Bank credit granted / 2017 / reported bank credit

RMB 36,900,000,000

Bank credit used / 2017 / reported bank credit

RMB 27,700,000,000

Bank-loan repayments / 2017 / reported bank loan repayments

RMB 6,527,000,000

Fixed assets had a net carrying value of CNY 13,415,339,996.11, including CNY 6,607,326,760.07 recorded under platinum-rhodium alloy, CNY 4,528,858,181.01 of machinery and CNY 2,192,230,531.27 of buildings. These are asset values, not tonnes of glass fiber capacity, precious-metal reserves available for unrestricted sale or measured production output. Gross fixed-asset additions totaled CNY 1,994,707,388.47, including CNY 1,573,335,843.03 transferred from construction in progress; other movements included transfers back into construction, disposal and reclassification. Such transfers are not new cash payments and should not be counted again as project investment. The depreciation charged in the fixed-asset movement note was CNY 645,373,288.33, whereas the profit-to-cash reconciliation used CNY 974,169,262.19; the source difference is retained rather than forcing the two presentations to match without a disclosed bridge. The note also lists the second-phase factory building of Jushi Group’s sixth plant at CNY 28,283,374.09 without a completed title certificate, describing it as within the normal certificate-processing period. That is the issuer’s explanation, not proof of an ownership dispute or confirmation that the certificate was subsequently issued.

Fixed asset carrying value / 2017 / platinum rhodium alloy

RMB 6,607,326,760.07

Fixed asset carrying value / 2017 / machinery

RMB 4,528,858,181.01

Fixed asset carrying value / 2017 / buildings

RMB 2,192,230,531.27

Gross fixed asset additions / 2017 / consolidated

RMB 1,994,707,388.47

Construction transfer to fixed assets / 2017 / all fixed assets

RMB 1,573,335,843.03

Fixed asset depreciation charge / 2017 / movement note

RMB 645,373,288.33

Asset without title certificate / 2017 / sixth plant phase2 building

RMB 28,283,374.09

Consolidated construction in progress ended at CNY 1,253,781,518.92, against CNY 943,888,082.50 at the start of the year. The important-project movement table covers a narrower set of projects, with a closing balance of CNY 1,123,666,646.16; the balance-sheet note separately identifies CNY 130,114,872.76 of other projects. Construction additions and transfers to fixed assets are accounting movements. They are not interchangeable with cash paid for long-term assets or tonnes of commercial output. The project table separately reports budget utilisation and physical progress, which can have different percentages. Blank opening balances, transfers, budgets and progress cells are retained as undisclosed cells rather than converted into verified zeros. Funding described as own funds and borrowings does not identify a specific loan allocated to each line.

Construction-note balance / 2017 / important project table

RMB 1,123,666,646.16

Construction-note balance / 2017 / other projects

RMB 130,114,872.76

Short-term borrowings ended at CNY 4,493,031,536.79, including CNY 605 million of mortgage-backed borrowing, CNY 1,643,492,312.50 of guaranteed borrowing and CNY 2,244,539,224.29 of unsecured credit borrowing. Non-current borrowings were CNY 2,624,378,680, separately from CNY 552,900,600 classified as long-term loans due within one year. The total current portion of non-current liabilities was CNY 666,380,359.45, including lease obligations. Bond carrying values totaled CNY 1,495,355,641.44; these are not the same as issue face values or annual cash proceeds. The note says the two private-placement notes totaling CNY 700 million that had become current in 2016 were repaid in 2017. Four short-term financing instruments with CNY 1.9 billion of opening principal were also repaid, with the table recording CNY 1,942,748,767.12 including interest. These repayments coexist with increased short-term and long-term loans; they do not establish that financing needs disappeared. Management reports that 63.90% of debt matured within one year, compared with 73.43% a year earlier, while 53.52% of interest-bearing borrowing carried fixed rates, compared with 26.60%. Its reported asset-liability ratio fell to 49.36% from 53.84%. These are dated issuer measures with different denominators, not guarantees of future refinancing or rates.

Borrowing component / 2017 / short term mortgage

RMB 605,000,000

Borrowing component / 2017 / short term guaranteed

RMB 1,643,492,312.5

Borrowing component / 2017 / short term credit

RMB 2,244,539,224.29

Non-current long-term borrowings after current-portion deduction / 2017 / non current

RMB 2,624,378,680

Current portion of long-term loans / 2017 / consolidated

RMB 552,900,600

Current portions of non-current liabilities / 2017 / consolidated

RMB 666,380,359.45

Bond carrying value / 2017 / non current

RMB 1,495,355,641.44

Short financing repayment including interest / 2017 / four scp instruments

RMB 1,942,748,767.12

Future minimum finance-lease payments totaled CNY 244,789,999.98: CNY 126,041,110.64 within one year, CNY 68,438,543.08 in the following year and CNY 50,310,346.26 in the third year. Unrecognised finance charges were CNY 17,536,222.51. After deducting those charges, the CNY 227,253,777.47 obligation reconciles to CNY 113,479,759.45 in current liabilities and CNY 113,774,018.02 in non-current finance-lease payables. Gross future minimum payments and discounted carrying balances should not be added together as separate debts. The report also describes an equipment sale-and-leaseback involving assets valued at CNY 373,626,596.64, a CNY 73,626,596.64 initial rental payment and a stated remaining rental total of CNY 300 million over a five-year term. Jushi Group retained possession, with no physical delivery of the equipment, while ownership was deemed transferred on payment of the transfer price. China Jushi provided an irrevocable joint-liability guarantee for that contract. This is financing of equipment already held, rather than evidence of a newly commissioned line or an additional physical shipment. The contract’s stated amounts and term are not represented as a new transaction completed during 2017.

Minimum finance-lease payments / 2017 / remaining schedule

RMB 244,789,999.98

Minimum finance-lease payments / 2017 / within one year

RMB 126,041,110.64

Unrecognised lease finance charges / 2017 / remaining schedule

RMB 17,536,222.51

Finance-lease payable / 2017 / current

RMB 113,479,759.45

Finance-lease payable / 2017 / non current

RMB 113,774,018.02

Land-use rights had a net carrying value of CNY 387,290,730.01, while mining rights were carried at CNY 115,364,984.54. These amounts represent intangible assets after accumulated amortisation, rather than land market values, mineral tonnage or cash freely available to finance expansion. The mining-rights original cost was CNY 116,863,895.90 and accumulated amortisation CNY 1,498,911.36. The land-use-rights note records CNY 60,669,727.95 of additions and CNY 10,738,535.17 of decreases in original cost, including land-return payments and other decreases. The note does not allocate the total carrying values to specific furnace lines, provide ore grades or remaining mine reserves, or verify the addresses and title status of every site. Upstream mineral integration therefore remains distinct from the accounting value of mining rights.

Intangible net carrying value / 2017 / land use rights

RMB 387,290,730.01

Intangible net carrying value / 2017 / mining rights

RMB 115,364,984.54

The major controlled-and-invested-company table identifies Jushi Group with a reported 100% holding and describes its business as glass-fiber production and sales. Registered capital was CNY 3,921,763,000.00, total assets CNY 19,417,965,200.00 and net assets CNY 10,237,199,300.00; these are organizational amounts, not plant-level investment or cash available to the issuer. FY2017 revenue was CNY 8,289,600,500.00, operating profit CNY 2,285,321,600.00 and net profit CNY 1,910,280,700.00. The original row uses ten-thousand CNY throughout; the amounts here are converted to CNY . Holding percentage alone does not establish the accounting method, shareholder-attributable earnings or a Jushi customer contract. These four company rows must not be summed as consolidated issuer revenue or profit.

Registered capital / 2017 / major investee operating table

RMB 3,921,763,000

Total assets / 2017 / major investee operating table

RMB 19,417,965,200

Net assets / 2017 / major investee operating table

RMB 10,237,199,300

Revenue / 2017 / major investee operating table

RMB 8,289,600,500

Operating profit / 2017 / major investee operating table

RMB 2,285,321,600

Net profit / 2017 / major investee operating table

RMB 1,910,280,700

Equity interest / 2017 / major investee operating table

100 percent

The major controlled-and-invested-company table identifies Beixin Technology Development with a reported 100% holding and describes its business as building-material sales. Registered capital was CNY 90,000,000.00, total assets CNY 86,257,700.00 and net assets CNY 76,192,600.00; these are organizational amounts, not plant-level investment or cash available to the issuer. FY2017 revenue was CNY 157,068,400.00, operating profit CNY -8,711,300.00 and net profit CNY 4,807,600.00. The original row uses ten-thousand CNY throughout; the amounts here are converted to CNY . Holding percentage alone does not establish the accounting method, shareholder-attributable earnings or a Jushi customer contract. These four company rows must not be summed as consolidated issuer revenue or profit. Its operating loss and positive net profit are distinct measures; the table does not provide a reconciliation of the difference.

Registered capital / 2017 / major investee operating table

RMB 90,000,000

Total assets / 2017 / major investee operating table

RMB 86,257,700

Net assets / 2017 / major investee operating table

RMB 76,192,600

Revenue / 2017 / major investee operating table

RMB 157,068,400

Operating profit / 2017 / major investee operating table

RMB -8,711,300

Net profit / 2017 / major investee operating table

RMB 4,807,600

Equity interest / 2017 / major investee operating table

100 percent

The major controlled-and-invested-company table identifies Zhongfu Lianzhong with a reported 32.04% holding and describes its business as wind-blade production and sales. Registered capital was CNY 261,307,500.00, total assets CNY 5,344,966,600.00 and net assets CNY 3,046,301,300.00; these are organizational amounts, not plant-level investment or cash available to the issuer. FY2017 revenue was CNY 2,004,021,300.00, operating profit CNY 297,345,200.00 and net profit CNY 265,093,700.00. The original row uses ten-thousand CNY throughout; the amounts here are converted to CNY . Holding percentage alone does not establish the accounting method, shareholder-attributable earnings or a Jushi customer contract. These four company rows must not be summed as consolidated issuer revenue or profit.

Registered capital / 2017 / major investee operating table

RMB 261,307,500

Total assets / 2017 / major investee operating table

RMB 5,344,966,600

Net assets / 2017 / major investee operating table

RMB 3,046,301,300

Revenue / 2017 / major investee operating table

RMB 2,004,021,300

Operating profit / 2017 / major investee operating table

RMB 297,345,200

Net profit / 2017 / major investee operating table

RMB 265,093,700

Equity interest / 2017 / major investee operating table

32.04 percent

The major controlled-and-invested-company table identifies Guangrongda Financial Leasing with a reported 20.10% holding and describes its business as leasing. Registered capital was CNY 500,000,000.00, total assets CNY 1,338,252,300.00 and net assets CNY 506,993,100.00; these are organizational amounts, not plant-level investment or cash available to the issuer. FY2017 revenue was CNY 79,734,400.00, operating profit CNY 5,591,000.00 and net profit CNY 4,072,200.00. The original row uses ten-thousand CNY throughout; the amounts here are converted to CNY . Holding percentage alone does not establish the accounting method, shareholder-attributable earnings or a Jushi customer contract. These four company rows must not be summed as consolidated issuer revenue or profit.

Registered capital / 2017 / major investee operating table

RMB 500,000,000

Total assets / 2017 / major investee operating table

RMB 1,338,252,300

Net assets / 2017 / major investee operating table

RMB 506,993,100

Revenue / 2017 / major investee operating table

RMB 79,734,400

Operating profit / 2017 / major investee operating table

RMB 5,591,000

Net profit / 2017 / major investee operating table

RMB 4,072,200

Equity interest / 2017 / major investee operating table

20.1 percent

The subsidiary list distinguishes Jushi USA in South Carolina, a manufacturing and sales company with a 70% direct interest, from the wholly owned California glass-fiber sales company. An overseas sales presence is not proof of another operating furnace. Jushi Egypt was wholly owned and located in Suez; the foreign-operation note identifies the US dollar as its functional currency. The report also describes a special perimeter for Hubei Hongjia Kaolin Mining: Jushi Group retained a 60% interest but contracted operations to a minority shareholder for three years from 11 September 2017. Under the disclosed arrangement, the operator controlled activities and bore the related profits and losses, while Jushi Group received a fixed annual contract fee of CNY 500,000. The issuer included Hongjia’s ending balance sheet in the consolidated balance sheet but excluded its profit and cash-flow statements from the contracting date. This unusual source statement is preserved rather than replaced with a blanket assumption based on the ownership percentage. Other changes included absorption of Zhejiang Beite Refractory into Jushi Group and deregistration of several sales or holding entities. Their removal as legal entities does not by itself prove that a physical production line closed.

Annual operating contract fee / 2017 / hongjia contract

RMB 500,000

The Zhongfu Lianzhong wind-blade associate was accounted for using the equity method. Its investment carrying value moved from CNY 826,325,539.52 to CNY 1,026,417,076.77 through CNY 157,166,718.43 of additional investment, CNY 78,179,444.13 of equity-accounted earnings, CNY 50,904,457 of dividends and CNY 15,649,831.69 in the other-movement column. The latter amount is also identified as acquisition-related income; it is not new wind-blade customer demand. Management’s investment discussion describes buying a 5.52% Zhongfu stake held by WISE-WIN TECHNOLOGY LIMITED for CNY 157,175,200. The financial note prints CNY 157,166,718.43, CNY 8,481.57 less, and phrases the purchase using WISE-WIN’s name. The source difference is retained without inventing a transaction structure or attributing it to rounding. The associate note says the purchase was completed in February 2017, while the acquisition-income note uses identifiable net assets dated 31 March 2017. Completion and valuation dates are kept separately. The closing investment also reconciles to a printed CNY 976,034,941.06 net-asset share plus CNY 50,382,135.71 of adjustments. However, that printed share is not the simple product of the closing 32.04% interest and the reported CNY 2,995,356,694.61 of parent-shareholder equity. The reason is not disclosed. The investee’s entire revenue and profit, Jushi’s equity-accounted earnings, cash dividends and acquisition gain are distinct measures.

Associate investment value / 2017 / zhongfu closing

RMB 1,026,417,076.77

Associate investment addition / 2017 / zhongfu financial note

RMB 157,166,718.43

Associate equity-accounted income / 2017 / zhongfu

RMB 78,179,444.13

Associate dividends / 2017 / zhongfu received

RMB 50,904,457

Associate net-asset share / 2017 / printed zhongfu share

RMB 976,034,941.06

Associate investment adjustment / 2017 / printed zhongfu adjustment

RMB 50,382,135.71

The consolidated associate-investment movement table closes at CNY 1,184,429,726.34 before a CNY 493,103.30 impairment allowance. Deducting that allowance yields CNY 1,183,936,623.04, the value also shown for associates in the parent-company note. The equality of these two resulting values does not make all consolidated and parent-company accounts interchangeable. The minor-associate summary reports CNY 157,519,546.27 of investment carrying value. In the same original table, a row headed as the aggregate calculated by ownership proportion prints CNY 103,298.66, while the separately labelled net-profit and comprehensive-income rows each print CNY 2,047,262.82. The table supplies no explanation of the difference, so the header-row amount is not relabelled as net profit. Minor investee rows are compressed rather than expanded into unrelated company research. Separately, the parent’s investment in controlled companies rose by CNY 368,984,000, shown against Jushi USA. That parent equity investment is not the same measure as the consolidated US construction additions or proof of a completed production line.

Associate investment value / 2017 / consolidated gross

RMB 1,184,429,726.34

Associate investment allowance / 2017 / consolidated

RMB 493,103.3

Parent US equity investment addition / 2017 / jushi usa

RMB 368,984,000

Glass fiber and related products generated CNY 8,427,139,862.74 of revenue and CNY 4,496,848,297.70 of cost in FY2017. The disclosed gross margin was 46.64%, up 2.14 percentage points; product revenue grew 15.38% and cost grew 10.93%. This product category accounted for 97.41% of the listed group's CNY 8,651,549,179.12 total operating revenue. Management connects growth to higher yarn sales and stronger wind-power and thermoplastic demand, with shortages in some products, regions and seasons. It does not provide separate margins for E7, E8, roving or electronic yarn in this table. The small other-product row is CNY 67,793,943.25 of revenue, not the entire difference between the main glass-fiber category and group revenue: the product table is a main-business presentation and should not be forced into a complete consolidated revenue reconciliation. The production/sales subsection says volumes grew but gives no tonnage; revenue growth therefore cannot establish realised tonnes, utilisation or average selling prices.

Revenue / 2017 / main business glass fiber products

RMB 8,427,139,862.74

Cost of sales / 2017 / main business glass fiber products

RMB 4,496,848,297.7

Gross margin / 2017 / main business glass fiber products

46.64 percent

Revenue / 2017 / consolidated total operating revenue

RMB 8,651,549,179.12

The main-business regional presentation reports domestic revenue of CNY 4,706,515,038.88, cost of CNY 2,670,334,994.78 and gross margin of 43.26%. Overseas revenue was CNY 3,884,408,057.10, cost CNY 1,988,056,762.65 and margin 48.82%. Domestic revenue grew 23.25% while overseas revenue grew 9.32%; domestic margin rose 4.31 percentage points and overseas margin fell 1.51 points. Management says domestic demand was strong and gives domestic sales a 54.78% share of main-business sales. These geographic sales rows do not measure the output or profitability of the Egyptian factory or any particular Chinese base. Domestic business relied principally on direct sales, with a smaller agency channel; overseas business combined trading subsidiaries, distributors and direct sales. No separate revenue or margin is disclosed here for each channel or country, and the regional table is not assumed to be an identical perimeter to the main-product or consolidated revenue totals.

Revenue / 2017 / main business domestic

RMB 4,706,515,038.88

Cost of sales / 2017 / main business domestic

RMB 2,670,334,994.78

Gross margin / 2017 / main business domestic

43.26 percent

Revenue / 2017 / main business overseas

RMB 3,884,408,057.1

Cost of sales / 2017 / main business overseas

RMB 1,988,056,762.65

Gross margin / 2017 / main business overseas

48.82 percent

The financial segment note reports all businesses in a single management segment, while providing product and geographic detail for external main-business revenue. It records glass-fiber product revenue of CNY 8,427,139,862.74 and cost of CNY 4,497,042,951.18, plus other-product revenue of CNY 163,783,233.24. Total main-business revenue was CNY 8,590,923,095.98, which excludes other-business revenue of CNY 60,626,083.14 and is below consolidated operating revenue of CNY 8,651,549,179.12. The glass-fiber cost differs by CNY 194,653.48 from the management table’s CNY 4,496,848,297.70; both source presentations are retained without inventing a reallocation. The note’s domestic and foreign external main-business revenues were CNY 4,706,515,038.88 and CNY 3,884,408,057.10. These geographic categories are not individual-country sales or proof that every overseas customer was supplied from an overseas furnace. They should be compared using the note’s complete main-business scope rather than silently substituting values from another table. The statement that customers were dispersed is management’s account and does not replace the disclosed customer concentration or related-business evidence.

Glass fiber product cost / 2017 / financial segment note

RMB 4,497,042,951.18

Main business revenue / 2017 / external financial segment note

RMB 8,590,923,095.98

Regional main-business revenue / 2017 / domestic financial segment note

RMB 4,706,515,038.88

Regional main-business revenue / 2017 / foreign financial segment note

RMB 3,884,408,057.1

The five largest customers accounted for CNY 1,166,851,200 of sales, or 13.49% of annual sales. Related-party sales within that five-customer subset were CNY 599,367,900, or 6.93% of annual sales. The five largest suppliers represented CNY 1,716,876,700 of purchases, or 9.66% of annual purchases; related-party purchases within that subset were CNY 386,567,200, or 2.18%. These related-party amounts concern the named concentration subsets, not all related transactions or all procurement. The table does not identify the five counterparties, so the separate wind-blade investment cannot be assigned to them. Material cost for glass fiber and products was CNY 1,439,053,744.38, up 23.14%. The reported 30.71% cost share uses total consolidated operating cost as its denominator, rather than the smaller glass-fiber product cost row. It is not a mineral-only cost share, unit input price or measure of the savings from the new powder plant. Procurement across Tongxiang, Chengdu, Jiujiang and Egypt used common negotiation with separate contracts, annual tenders and long-term contracts during rising input markets; these controls do not establish fixed prices or a quantified saving.

Top-customer sales / 2017 / top five customers

RMB 1,166,851,200

Top-customer sales share / 2017 / top five customers

13.49 percent

Top-customer sales / 2017 / related parties within top five customers

RMB 599,367,900

Top-customer sales share / 2017 / related parties within top five customers

6.93 percent

Top-supplier purchases / 2017 / top five suppliers

RMB 1,716,876,700

Top-supplier purchase share / 2017 / top five suppliers

9.66 percent

Top-supplier purchases / 2017 / related parties within top five suppliers

RMB 386,567,200

Top-supplier purchase share / 2017 / related parties within top five suppliers

2.18 percent

Reported material cost / 2017 / glass fiber products

RMB 1,439,053,744.38

Reported material share of cost / 2017 / consolidated total cost denominator

30.71 percent

The related-party note records CNY 272,036,246.21 of transport services purchased from Zhenshi Group Zhejiang Yushi International Logistics, alongside other logistics providers and equipment and mineral-powder suppliers. Sales of goods to Zhejiang Hengshi, the related fiber-materials company named in the filing, were CNY 495,152,377.28; raw materials, utilities and other transactions with that company were listed separately. These figures describe particular related-party transaction categories, not the aggregate of all related purchases or sales and not the same perimeter as the top-five customer and supplier tables. Sales to the Zhongfu Lianzhong wind-blade investee and other disclosed related businesses connect the glass-fiber operation to downstream materials users, without establishing exclusive sourcing or a complete customer dependency. Closing related trade receivables totaled CNY 27,622,984.23 gross with CNY 278,395.82 of allowances, while related trade payables totaled CNY 32,094,170.92. Year-end balances are not annual transaction volumes. The listed company’s parent-only receivables also include substantial balances with consolidated subsidiaries, so those balances must not be added to group external credit exposure. These relationships are taken from the report; partner businesses are not independently researched or recursively expanded.

Related transport purchase / 2017 / zhejiang yushi

RMB 272,036,246.21

Related goods sales / 2017 / zhejiang hengshi

RMB 495,152,377.28

Related trade receivables / 2017 / consolidated gross

RMB 27,622,984.23

Related receivable allowance / 2017 / consolidated

RMB 278,395.82

Related-party trade payables / 2017 / consolidated

RMB 32,094,170.92

Operating activities generated net cash of CNY 3,802,770,323.38, compared with CNY 3,169,081,426.53 in 2016. The detailed operating explanation attributes growth to more cash received from sales and less cash paid for purchases; the later summary mentions sales receipts alone, which is a shorter explanation rather than a different cash amount. Net investing cash flow was negative CNY 1,280,800,554.63 and net financing cash flow negative CNY 2,302,107,499.65. The issuer associates investing changes with wealth-management investments and fixed-asset payments, and financing changes with repayments of loans and bonds plus dividend and interest payments. Neither net investing outflow nor construction-in-progress growth is an isolated annual capital-expenditure figure. Operating cash does not prove that any named plant fully funded itself or that cash was unrestricted. Financial expense fell to CNY 419,995,082.99, with higher interest income and lower foreign-exchange losses cited; this is not evidence that all interest-bearing debt or loan rates fell.

Net cash from operating activities / 2017 / consolidated

RMB 3,802,770,323.38

Net cash from investing activities / 2017 / consolidated

RMB -1,280,800,554.63

Net cash from financing activities / 2017 / consolidated

RMB -2,302,107,499.65

The financial audit expressed an unqualified opinion on the consolidated and parent-company statements prepared under Chinese Accounting Standards. Its key audit matters were glass-fiber revenue recognition and elimination of transactions within the consolidated group. Glass-fiber sales accounted for 97.41% of total operating revenue, making shipment and sales cut-off important to the reported result. The auditor describes checking contracts, dispatch and receipt records, export confirmations and actual vessel departure dates. Domestic glass-fiber sales of consolidated Chinese entities were centrally handled through the listed company, creating frequent and material internal transactions that had to be eliminated. The audit describes reconciliation of related-party transactions and elimination of unrealised internal profits. Key audit matters are areas of audit attention, not separate opinions or findings that every transaction was misstated. The financial opinion does not provide an assurance opinion on the other narrative sections of the annual report, and it does not constitute independent editorial review of this research.

Consolidated trade receivables were CNY 1,382,866,840.04 before CNY 150,351,916.53 of allowances, leaving CNY 1,232,514,923.51 net. A CNY 28,920,454.35 balance from Shandong Yuxin Glass Fiber was individually fully provided because the issuer described it as unrecoverable. Total receivables written off during the year were CNY 6,325,792.70; write-offs, annual provisions and closing allowances are different measures. The five largest debtor balances totaled CNY 171,962,743.99, or 12.44% of gross receivables, and included the fully provided balance. This debtor concentration is not the top-five sales-customer concentration. Receivable bills totaled CNY 2,266,699,470.63, comprising bank-acceptance bills of CNY 2,248,765,866.27 and commercial-acceptance bills of CNY 17,933,604.36. The note reported no outstanding pledged, endorsed or discounted bills at year end within its stated scope. Bills and receivables are not unrestricted cash, and management’s description of credit controls does not remove the disclosed collection losses. Named debtors are recorded from the filing without extending research into those companies.

Trade receivables before allowance / 2017 / consolidated

RMB 1,382,866,840.04

Trade receivable expected-credit-loss allowance / 2017 / consolidated

RMB 150,351,916.53

Trade receivables after allowance / 2017 / consolidated

RMB 1,232,514,923.51

Actual trade receivable write-offs / 2017 / consolidated

RMB 6,325,792.7

Receivable bills / 2017 / consolidated

RMB 2,266,699,470.63

Receivable bills / 2017 / bank acceptance

RMB 2,248,765,866.27

Receivable bills / 2017 / commercial acceptance

RMB 17,933,604.36

Consolidated inventory ended at CNY 1,329,383,849.68. It included CNY 388,184,597.23 of raw materials, CNY 711,013,028.49 of goods in stock, CNY 34,535,834.02 of circulating materials and CNY 195,650,389.94 of dispatched goods. Goods in stock fell from CNY 981,746,821.80 net while dispatched goods rose from CNY 21,726,987.95. Dispatch does not by itself establish recognition as revenue: the historical sales policy required transfer of significant risks and rewards and other recognition conditions. The inventory note did not show a closing write-down allowance, after the small opening goods-in-stock allowance was reversed or used. That accounting balance does not independently establish that all stock could be sold at its carrying value. Inventory was measured using weighted-average cost and the lower of cost and net realisable value. Separately, other current assets included CNY 558 million of bank wealth-management products and CNY 189,772,631.07 of tax credits and prepaid taxes; neither category is additional physical inventory or equivalent to cash freely available for production.

Inventory value / 2017 / consolidated

RMB 1,329,383,849.68

Inventory value / 2017 / raw materials

RMB 388,184,597.23

Inventory value / 2017 / goods in stock

RMB 711,013,028.49

Inventory value / 2017 / circulating materials

RMB 34,535,834.02

Inventory value / 2017 / dispatched goods

RMB 195,650,389.94

Tax credits and prepaid taxes / 2017 / consolidated

RMB 189,772,631.07

Consolidated net profit was CNY 2,157,591,416.96, including CNY 2,149,849,386.80 attributable to parent-company shareholders. Operating cash flow was CNY 3,802,770,323.38. The reconciliation includes CNY 974,169,262.19 of depreciation and CNY 40,043,501.51 of impairment charges, together with other non-cash and non-operating adjustments. Operating receivable items reduced cash by CNY 3,866,090,434.11 while operating payable items increased it by CNY 4,035,170,877.07. Those broad reconciliation items are not simply the movements in the two balance-sheet trade accounts. Cash received from selling goods and services was CNY 7,033,358,620.11, while the cash-flow statement also includes taxes, interest, subsidies and other operating movements. Cash paid to acquire or construct long-term assets was CNY 2,048,433,588.36; net investing cash flow of negative CNY 1,280,800,554.63 also reflects investments, recoveries and returns. It should not be relabelled as project capital expenditure. Year-end cash and cash equivalents were CNY 1,837,501,503.65, below balance-sheet monetary funds by the CNY 4,561,963.67 restricted balance. Strong operating cash in this year does not establish a permanent collection pattern or a cash allocation to a particular production line.

Consolidated net profit / 2017 / consolidated

RMB 2,157,591,416.96

Profit attributable to shareholders / 2017 / parent shareholders

RMB 2,149,849,386.8

Cash-flow reconciliation depreciation / 2017 / consolidated reconciliation

RMB 974,169,262.19

Operating receivable cash adjustment / 2017 / consolidated reconciliation

RMB -3,866,090,434.11

Operating payable cash adjustment / 2017 / consolidated reconciliation

RMB 4,035,170,877.07

Long-term asset cash expenditure / 2017 / consolidated

RMB 2,048,433,588.36

Cash and cash equivalents / 2017 / consolidated

RMB 1,837,501,503.65

Financial expenses fell to CNY 419,995,082.99 even though the reported interest-expense component increased to CNY 551,487,247.48. Interest income was shown as a deduction of CNY 172,454,579.49, and exchange losses fell to CNY 29,476,376.77. A lower net financing expense therefore does not mean every borrowing cost declined. Foreign-operation translation losses recorded in other comprehensive income are separate from exchange differences charged to profit. Investment income was CNY 82,848,494.27, principally CNY 78,282,742.79 of equity-accounted investment income rather than sales from Jushi’s own factories. Government subsidies recognised in profit totaled CNY 43,790,422.86, split between CNY 33,280,666.60 of other income and CNY 10,509,756.26 of non-operating income; classification changed under the historical policy, so the fall in non-operating subsidies alone does not measure the change in total support. The additional Zhongfu Lianzhong investment generated a CNY 15,649,831.69 acquisition-related gain, and early termination of Beixin’s market-operation contract generated CNY 15,867,166.05 of non-operating income after closure costs. These explanations identify earnings sources without treating acquisition gains, subsidies or one-time compensation as recurring glass-fiber customer demand.

Interest expense / 2017 / financial expense component

RMB 551,487,247.48

Exchange loss / 2017 / profit and loss

RMB 29,476,376.77

Investment income / 2017 / consolidated

RMB 82,848,494.27

Equity-accounted income / 2017 / consolidated

RMB 78,282,742.79

Government subsidies in profit / 2017 / consolidated

RMB 43,790,422.86

Acquisition-related gain / 2017 / zhongfu investment

RMB 15,649,831.69

Contract termination income / 2017 / beixin market contract

RMB 15,867,166.05

The goodwill note records CNY 472,512,501.24, unchanged between the opening and closing tables. The largest named components are CNY 189,612,641.95 for Tongxiang Leishi’s mineral-powder business and CNY 176,839,725.90 for Tongxiang Jinshi’s precious-metal equipment business. These are goodwill from business combinations, not physical mineral stocks, metal inventories or the construction budget of a new line. Other named components include holding, sales, mining and group businesses. The issuer says the goodwill was allocated to related asset groups and that impairment testing found no impairment. The note does not disclose the testing process, parameters or calculation of recoverable amounts. That is a limitation on what a reader can assess from this filing; it is not an independent confirmation of recoverability or evidence that undisclosed assumptions were wrong. The component businesses are recorded from the report without extending partner research.

Goodwill value / 2017 / consolidated

RMB 472,512,501.24

Goodwill value / 2017 / leishi powder component

RMB 189,612,641.95

Goodwill value / 2017 / jinshi equipment component

RMB 176,839,725.9

Income-tax expense was CNY 375,553,152.40, comprising current expense of CNY 380,902,458.50 and a deferred-tax credit of CNY 5,349,306.10. The bridge starts from CNY 633,286,142.34 of tax calculated on CNY 2,533,144,569.36 of profit before tax. Different subsidiary tax rates reduced that amount by CNY 189,783,403.47; prior-period adjustments reduced it by CNY 6,421,157.87, associate and joint-venture profit effects by CNY 19,570,685.70, and use of losses without previously recognised deferred-tax assets by CNY 44,854,792.87. Non-deductible costs added CNY 673,729.91 and unrecognised current loss or temporary-difference effects added CNY 2,223,320.06. These listed movements reconcile to the expense. The filing separately reports unoffset deferred-tax assets of CNY 101,973,166.59 and liabilities of CNY 129,402,880.85. Deductible losses of CNY 134,882,662.11 had no recognised deferred-tax asset; most were scheduled to expire in 2019. Loss tax bases are not recognised assets or guaranteed future refunds. Tax expense, tax payable, prepaid taxes and cash tax payments measure different things and must not be substituted for one another.

Income-tax expense / 2017 / consolidated

RMB 375,553,152.4

Current tax expense / 2017 / consolidated

RMB 380,902,458.5

Deferred tax expense / 2017 / consolidated

RMB -5,349,306.1

Deferred tax asset / 2017 / unoffset consolidated

RMB 101,973,166.59

Deferred tax liability / 2017 / unoffset consolidated

RMB 129,402,880.85

Unrecognised tax loss base / 2017 / deductible losses

RMB 134,882,662.11

Deferred grant income ended at CNY 55,506,733.18. The note distinguishes an earlier glass-fiber waste-reuse grant, a CNY 45 million intelligent-manufacturing grant received in 2016 and a CNY 8.7 million green-manufacturing integration grant received by Jushi Jiujiang in 2017. The new CNY 8.7 million remained deferred in the closing table. The intelligent-manufacturing grant released CNY 3,093,750 into the year’s accounting results, with CNY 41,906,250 still deferred; the waste-reuse grant released CNY 363,466.58. A grant’s original receipt, closing deferred balance and recognition in income are different measures. These project-related amounts explain financing and earnings timing without demonstrating independently verified energy savings, environmental compliance or an additional production line. They must not be added a second time to the total subsidies already reported in earnings.

Deferred grant income / 2017 / consolidated

RMB 55,506,733.18

Green-manufacturing grant / 2017 / jushi jiujiang received

RMB 8,700,000

Grant income release / 2017 / intelligent manufacturing

RMB 3,093,750

The issuer’s non-recurring profit schedule totals CNY 58,479,078.31 after tax and minority interests. It includes a CNY 8,590,160.17 loss on disposals of non-current assets, CNY 43,790,422.86 of qualifying subsidies, CNY 15,649,831.69 of acquisition-related gain, CNY 7,550,081.72 from the specified financial instruments, CNY 13,679,311.06 of other non-operating items and CNY 4,565,751.48 of other qualifying items. The schedule then deducts CNY 16,044,290.70 of tax effects and CNY 2,121,869.63 of minority-interest effects. Those components reconcile to the reported net amount. Non-recurring is the issuer’s stated classification for this period, not a claim that all included effects can never recur. The schedule is not extra income to add to consolidated profit or an independent forecast of normal future earnings. Its reported 2016 earnings-per-share comparatives were adjusted for the reserve-funded share increase; unadjusted historical per-share figures would have a different share-count basis.

Net non-recurring profit / 2017 / issuer classification

RMB 58,479,078.31

The employee-payable note records CNY 831,872,936.49 of additions during 2017, comprising CNY 775,553,380.80 of short-term remuneration and CNY 56,319,555.69 of defined-contribution benefits. Starting from CNY 9,641,673.66 and deducting CNY 817,677,247.92 of reductions gives the closing liability of CNY 23,837,362.23. This movement explains accrued employee obligations; it is not the same measure as the cash-flow statement’s CNY 792,844,044.39 paid to and for employees. The filing does not provide a bridge identifying all reasons for the difference, so the liability reductions are not relabelled as cash payments. Employee costs appearing in selling or management expense are functional classifications and must not be added again to the payable-note total. The closing workforce is a point-in-time count, not average staff employed throughout the year; dividing these amounts by that count would not establish average annual pay or productivity. Routine benefit and training components are condensed because the report does not demonstrate their effect on production yield, downtime or customer quality.

Employee payable additions / 2017 / consolidated

RMB 831,872,936.49

Employee payable reductions / 2017 / consolidated

RMB 817,677,247.92

Employee payable / 2017 / consolidated

RMB 23,837,362.23

Cash paid to and for employees / 2017 / consolidated

RMB 792,844,044.39

Selling expenses were CNY 321,286,725.11, compared with CNY 295,479,170.05 in 2016. Transportation accounted for CNY 258,759,173.56, up from CNY 240,773,137.25; port and customs-related costs were separately classified at CNY 12,804,303.22, compared with CNY 4,499,772.13. Distribution therefore contributes a substantial cost beyond the product-cost tables, but these values do not disclose freight per tonne, a market freight rate or logistics costs of a particular factory. The management-expense note separately records CNY 39,607,938.36 of transport costs. Related-party purchases of transport services from Zhenshi Group Zhejiang Yushi International Logistics were CNY 272,036,246.21, alongside other named providers. The supplier-transaction perimeter and functional expense classifications differ: they are not forced into equality or added together as a verified group-wide logistics total. The supplier names and disclosed transaction categories are retained without extending research into those partners.

Selling expenses / 2017 / consolidated

RMB 321,286,725.11

Transport within selling expenses / 2017 / consolidated

RMB 258,759,173.56

Port and customs expense / 2017 / consolidated

RMB 12,804,303.22

Taxes payable ended at CNY 291,210,706.78, compared with CNY 142,253,022.39 at the start of the year. The closing total included CNY 200,539,388.84 of corporate income tax and CNY 73,424,039.25 of value-added tax, alongside other disclosed taxes and charges. Corporate income tax is a subset of the payable balance, not an extra liability to add to it. The cash-flow statement separately records CNY 798,508,425.42 of taxes paid during the year and CNY 20,954,292.42 of tax refunds received. Those cash lines cover their stated tax categories; they are not simply cash settlement of the income-tax expense or of the closing payable balance. The income-tax expense, tax-credit and prepayment assets, deferred taxes, year-end tax obligations and annual cash movements have separate periods and scopes. The filing supplies no complete common-perimeter reconciliation, so the differences are not attributed to a particular subsidiary, tax concession or payment delay without evidence.

Taxes payable / 2017 / consolidated

RMB 291,210,706.78

Corporate income tax payable / 2017 / consolidated

RMB 200,539,388.84

Cash taxes paid / 2017 / consolidated

RMB 798,508,425.42

The report records a CNY 106,686,453.07 foreign-operation translation loss in other comprehensive income, a separate statement of changes outside net profit. CNY 106,435,965.66 was attributable to parent-company shareholders and CNY 250,487.41 to minority shareholders. The parent-attributable opening translation balance of positive CNY 20,820,285.88 therefore became negative CNY 85,615,679.78 at year end. This equity translation effect is distinct from the CNY 29,476,376.77 exchange loss reported in financial expenses and the negative CNY 132,714,347.93 exchange-rate effect on cash and cash equivalents. Those are different accounting measures and must not be added as one verified foreign-exchange loss or substituted for overseas operating performance. The Egypt subsidiary used the US dollar as its functional currency, despite operating in Suez, Egypt. A location does not by itself determine the financial reporting currency. Management describes matching forward currency contracts to exposures and increasing foreign-currency liabilities for overseas operations; these are disclosed risk-management methods, not proof that every exposure was hedged or that hedging eliminated all losses. The foreign monetary-item tables identify currency-denominated balances, rather than revenue, profit or production from each geographic factory.

Foreign-operation translation OCI / 2017 / consolidated

RMB -106,686,453.07

Foreign-operation translation OCI / 2017 / parent attributable

RMB -106,435,965.66

Foreign-operation translation OCI / 2017 / minority attributable

RMB -250,487.41

Foreign-operation translation balance / 2017 / parent attributable

RMB -85,615,679.78

FX effect on cash and equivalents / 2017 / consolidated

RMB -132,714,347.93

Prepayments ended at CNY 317,865,067.80, compared with CNY 156,316,847.92 at the start of the year. CNY 315,848,020.45, or 99.37%, was less than one year old. The five largest prepaid counterparties together accounted for CNY 195,886,136.72, or 61.63%. They were Jujiang Construction Group at CNY 71,170,000, Guangzhou Shiji Refractory Materials Factory at CNY 67,892,740.33, Zhuolang (Jiangsu) Textile Machinery at CNY 22,246,000, State Grid Zhejiang Tongxiang Power Supply at CNY 17,937,041.06, and DIETZE & SCHELL MASCHINENFABRIK GMBH & CO. KG. at CNY 16,640,355.33. The issuer classified all five as third parties. Their names identify disclosed prepayment relationships; the table does not identify the contract, equipment specification, delivery milestone or furnace line financed by each balance. Prepayments are supplier advances, not trade receivables, new sales or unrestricted cash. For important prepayments older than one year, the issuer says contractual settlement was not yet due. That explanation does not prove every supplier subsequently delivered, and the ending balance is not the total cash paid to suppliers during 2017. Partner research is limited to the annual report’s disclosed names and balances.

Top-five prepayment balances / 2017 / consolidated

RMB 195,886,136.72

Other receivables were CNY 106,345,365.44 gross, with CNY 5,682,233.90 of allowances and CNY 100,663,131.54 net. The nature table separately identifies CNY 45,986,840.15 of security deposits, CNY 18,521,948.18 of other deposits and CNY 13,405,265.92 of export-tax refunds receivable, alongside staff advances, expenses advanced, insurance and other items. These are receivable categories rather than cash already freely available. The five largest disclosed positions totaled CNY 60,999,313.20, or 57.37% of gross other receivables, with CNY 1,282,216.76 of allowances. They included CNY 27 million of security deposits with China Merchants Financial Leasing, the export-tax refund claim, CNY 9,114,047.28 of deposits with EGYPTIAN ELECTRICITY TRANSMISSION COMPANY, CNY 7,120,000 in a Tongxiang public-resource land-transaction security-deposit account and CNY 4,360,000 with the Tongxiang Economic Development Zone administrative committee. The electricity and land-related names explain the disclosed counterparties; they do not establish ownership of a specific site, an operating permit, a new production line or the timing of cash recovery. The source states that certain individually assessed balances were recoverable, while another CNY 1,672,819.74 balance was fully provided as unrecoverable. The overall net asset value therefore must not be treated as independent assurance that every claim would be collected. Gross positions, individual allowances and net amounts retain their separate scopes.

Gross other receivables / 2017 / consolidated

RMB 106,345,365.44

Other receivable credit-loss allowance / 2017 / consolidated

RMB 5,682,233.9

Net other receivables / 2017 / consolidated

RMB 100,663,131.54

Security deposits receivable / 2017 / consolidated

RMB 45,986,840.15

Other deposits receivable / 2017 / consolidated

RMB 18,521,948.18

Export-tax refunds receivable / 2017 / consolidated

RMB 13,405,265.92

Top-five other-receivable balances / 2017 / consolidated

RMB 60,999,313.2

Security deposits receivable / 2017 / china merchants financial leasing

RMB 27,000,000

Other deposits receivable / 2017 / egyptian electricity transmission

RMB 9,114,047.28

Security deposits receivable / 2017 / tongxiang land transaction account

RMB 7,120,000

Security deposits receivable / 2017 / tongxiang development zone

RMB 4,360,000

The trade-receivable note reports CNY 38,546,934.25 of allowance provisions during the year and CNY 62,739.05 of recoveries or reversals. The other-receivable note reports CNY 1,372,081.84 of provisions, explicitly zero recoveries or reversals, and CNY 182,347 of write-offs. The two provision amounts sum to CNY 39,919,016.09. The loss table separately prints CNY 40,043,501.51 of bad-debt losses and the same amount as total asset-impairment loss for 2017. Its fixed-asset impairment amount belongs to the prior-year column. The printed bad-debt loss therefore exceeds the sum of the two disclosed provision amounts by CNY 124,485.42, calculated here from those source inputs. The report does not provide a complete bridge explaining that difference; it is not assigned to exchange movements, a specific debtor or an accounting error. Annual provisions, recoveries, write-offs and closing allowances are different measures, so none is substituted for the expense merely to obtain a matching total. The source figures and the unresolved reconciliation are retained with their page references.

Receivable allowance provisions / 2017 / trade receivables

RMB 38,546,934.25

Receivable allowance provisions / 2017 / other receivables

RMB 1,372,081.84

The 2017 accounting policies record fixed assets at actual acquisition cost and start straight-line depreciation in the month after an asset reaches its intended usable condition. Buildings have disclosed useful lives of 20–40 years and machinery 10–12 years, with a 5% residual-value assumption. These are accounting estimates for asset categories, not evidence that a furnace will run continuously for that length of time. Construction is transferred to fixed assets when it reaches the intended usable condition; if final settlement is still pending, the company initially transfers an estimated cost and subsequently adjusts it to actual cost without recalculating depreciation already charged. This explains why transfer to fixed assets, final construction settlement and full commercial utilisation can occur at different times. Directly attributable borrowing costs are capitalised into qualifying asset costs once expenditure, borrowing costs and necessary construction or production activities have begun. The policy suspends capitalisation during an abnormal interruption lasting more than three consecutive months and stops it when the asset is ready for its intended use or sale. These are recognition conditions; they do not establish that a particular 2017 project experienced an interruption. The disclosed carrying values therefore combine construction and financing recognition with depreciation, rather than measuring new capacity or total cash investment directly.

The 2017 tax note lists 25% and 15% corporate income-tax rates for the relevant Chinese entities and says subsidiaries in Hong Kong and other countries follow their registration jurisdictions’ rules. It does not assign a uniform 15% tax rate to the consolidated group. The issuer identifies four subsidiaries benefiting from 15% concessions: Jushi Group, Jushi Group Jiujiang, Jushi Group Chengdu and Jushi Pandeng Electronic Base Materials. Jushi Group’s renewed high-technology status is linked to the Zhejiang notice dated 13 November 2017 and certificate GR201733001275, valid for three years. Jiujiang’s status is linked to the Jiangxi notice dated 24 February 2017 for the 2016 list and certificate GR201636000388, also valid for three years. Pandeng’s requalification is linked to the notice dated 30 November 2016 and certificate GR201633000216, valid for three years. Chengdu’s separately disclosed western-development concession runs from 1 January 2013 to 31 December 2020 under an approval dated 17 March 2014. These are the company’s historical disclosures, not verification of present-day eligibility or promises of future savings. Entity-level rates and qualification periods help interpret the existing consolidated tax reconciliation; neither the group’s tax expense nor tax cash paid can be calculated by applying one subsidiary’s concession to all group profits.

Disclosed income-tax concession rate / 2017 / jushi group high technology

15%

Disclosed income-tax concession rate / 2017 / jushi jiujiang high technology

15%

Disclosed income-tax concession rate / 2017 / jushi chengdu western development

15%

Disclosed income-tax concession rate / 2017 / jushi pandeng high technology

15%

The cost-measured available-for-sale equity note identifies a 10% stake in Yantai Bohai Chemical Building Materials. Its gross balance and impairment allowance were both CNY 12,327,935.72 at the beginning and end of 2017. Subtracting the allowance from the gross balance gives a net carrying amount of zero; the original net-value cells are blank. The impairment-movement table also leaves current-year additions and reductions blank, so a numerical current-year charge is not extracted from those blank cells. A fully provided balance is distinct from a new 2017 expense, a disposal or proof that the legal shareholding ceased to exist. The name and ownership percentage describe the issuer’s disclosed minority investment; they do not justify extending research into that investee’s customers, factories or current legal status. This position is separate from the equity-accounted associates and their acquisition gains discussed elsewhere.

Cost-measured available-for-sale equity gross / 2017 / yantai bohai cost measured

RMB 12,327,935.72

Available-for-sale equity allowance / 2017 / yantai bohai cost measured

RMB 12,327,935.72

Disclosed investee ownership / 2017 / yantai bohai cost measured

10%

Bank-acceptance bills payable ended at CNY 1,019,293,870.84, separately from CNY 1,054,863,408.49 of trade accounts payable. The trade-account balance included CNY 507,296,479.80 for raw materials, CNY 329,080,610.95 for equipment and CNY 178,050,388.67 for construction, as well as utilities, freight, services and other items. Equipment and construction balances are outstanding obligations, not additional cash capital expenditure to add to the cash-flow investment figure. The important trade balances older than one year totaled CNY 15,043,658.13; the issuer attributed those balances to contractual payment dates not yet reached, rather than describing them as defaults. Advances received from customers totaled CNY 132,571,090.41, principally CNY 132,559,503.93 of goods payments received in advance. This balance is distinct from recognised sales, amounts collected during the whole year and orders already delivered. Interest payable was CNY 44,354,321.07, separately from annual interest expense or interest cash paid. Other payables were CNY 94,434,329.36 and included security deposits payable, utilities, freight and other operating items; they are neither the other-receivable deposits owed to Jushi nor a single new borrowing. These balance-sheet classifications complement the broad operating-payable adjustment in the earnings-to-cash reconciliation, without claiming that each balance changed cash by the same amount.

Bank-acceptance bills payable / 2017 / consolidated

RMB 1,019,293,870.84

Trade accounts payable / 2017 / consolidated

RMB 1,054,863,408.49

Trade accounts payable / 2017 / raw materials

RMB 507,296,479.8

Trade accounts payable / 2017 / equipment

RMB 329,080,610.95

Trade accounts payable / 2017 / construction

RMB 178,050,388.67

Customer advances received / 2017 / consolidated

RMB 132,571,090.41

Interest payable / 2017 / consolidated

RMB 44,354,321.07

Other payables / 2017 / consolidated

RMB 94,434,329.36

The derivative-asset note reports CNY 1,666,100.02 at the end of 2017, compared with CNY 1,100,216.51 at the start. The fair-value disclosure places the ending asset amount in its second valuation level. Separately, the fair-value-change income table reports CNY 7,550,081.72 from derivative financial assets for the year. A closing asset value is not the same measure as annual valuation income or cash settlements. The derivative-liability note prints CNY 7,136,316.00 for foreign-exchange forward contracts in the opening column and leaves the ending column blank; a verified zero is not extracted from that blank cell. The investment-income note separately identifies CNY 4,921,734.16 of precious-metal forward investment income. That income must not be relabelled as glass-fiber customer sales, added to the closing derivative asset as if both were cash, or treated as proof of elimination of currency or metal-price risk. Management’s disclosed matching of foreign-exchange forwards to underlying currencies and maturities describes its risk-management method; the tables do not provide a complete contract-by-contract bridge or establish that every hedge was effective. Valuation income, investment income and the exchange and foreign-operation translation amounts discussed elsewhere retain their different accounting scopes.

Derivative financial assets / 2017 / consolidated

RMB 1,666,100.02

Derivative fair-value change income / 2017 / consolidated

RMB 7,550,081.72

Precious-metal forward investment income / 2017 / consolidated

RMB 4,921,734.16

The restricted-asset note supports the existing CNY 1,900,899,292.19 total with CNY 4,561,963.67 of monetary funds restricted through pledges or security deposits, CNY 1,861,514,127.57 of fixed assets restricted through mortgage borrowing or finance leases, and CNY 34,823,200.95 of intangible assets restricted through land-backed borrowing. The three components reconcile to the reported total. This is a restriction classification within recorded asset values, not an additional asset purchase, a new cash outflow or a separate borrowing principal. Fixed-asset and land collateral should not be deducted from cash as though they were cash balances. The table does not allocate every restricted asset to a named production line or to a particular lender’s outstanding loan. The cash-and-cash-equivalent reconciliation separately excludes the restricted monetary balance; the remaining physical and intangible restrictions are relevant to financing flexibility and rights over operating assets, rather than evidence of idle capacity or a specific ownership dispute.

Restricted assets / 2017 / fixed assets

RMB 1,861,514,127.57

Restricted assets / 2017 / intangible assets

RMB 34,823,200.95

The liquidity note labels its table as undiscounted contractual cash flows. Its long-term borrowing row places CNY 2,599,878,680 in the one-to-five-year band and CNY 24,500,000 beyond five years, totaling CNY 2,624,378,680. The same total appears in the long-term borrowing note. The current portion of non-current liabilities is presented on a separate row, rather than placing those long-term amounts within one year. These table amounts are existing liabilities, not new borrowing receipts or additional project investment. Management reports that 63.90% of debt matured within one year; this reported debt measure is kept distinct from a ratio computed by mixing individual balance-sheet classifications. The table does not allocate repayment schedules to individual factories or construction projects. It supports the distinction between short-term refinancing exposure and the longer borrowing horizon, without establishing whether any particular loan was overdue or whether a project could obtain future funding.

Contractual maturity of long-term borrowings / 2017 / consolidated one to five years

RMB 2,599,878,680

Contractual maturity of long-term borrowings / 2017 / consolidated over five years

RMB 24,500,000

The parent-company trade-receivable note reports CNY 902,949,246.08 gross, CNY 12,640,956.38 of allowances and CNY 890,308,289.70 net. A separately assessed CNY 510,093,992.63 consists of receivables from Jushi Group, Jiujiang, Egypt, Chengdu and Pandeng; the source labels those related balances as not provided for bad debts. This is an issuer accounting treatment, not independent collection assurance or the policy for every external debtor. The parent’s other receivables were CNY 323,544,554.82 gross, with CNY 1,360 of allowances and CNY 323,543,194.82 net. Their principal component was CNY 310,000,000 of funds lent, comprising CNY 290,000,000 owed by Chengdu and CNY 20,000,000 by Jushi Group, separately from export-tax refunds and expenses advanced. These parent balances help explain internal funding and receivables within the group. They are not additional external customer receivables to add to consolidated totals or evidence that new parent-to-subsidiary loans of the same amounts were disbursed in 2017. The closing balances do not disclose complete annual borrowing, repayment or settlement flows. Parent receivables, subsidiary dividends and consolidated cash retain their distinct scopes.

Trade receivables before allowance / 2017 / parent company

RMB 902,949,246.08

Trade receivable expected-credit-loss allowance / 2017 / parent company

RMB 12,640,956.38

Trade receivables after allowance / 2017 / parent company

RMB 890,308,289.7

Related trade receivables / 2017 / parent company separately assessed related

RMB 510,093,992.63

Gross other receivables / 2017 / parent company

RMB 323,544,554.82

Other receivable credit-loss allowance / 2017 / parent company

RMB 1,360

Net other receivables / 2017 / parent company

RMB 323,543,194.82

Funds lent principal / 2017 / parent company

RMB 310,000,000

Funds lent principal / 2017 / parent company chengdu

RMB 290,000,000

Funds lent principal / 2017 / parent company jushi group

RMB 20,000,000

The 2017 risk account identifies electricity, natural gas, minerals and chemical inputs as cost and supply exposures. Continuous furnace operation makes fuel shortages particularly relevant. Management describes gas-supply stations, tanks and vehicle-based reserve supply, and says urgently purchased gas can reach a base within two to twelve hours. This is an issuer contingency statement, not an independently tested response time or proof that no interruption occurred. International sales also faced anti-dumping and countervailing measures; the filing's dated European and other-country discussion is historical context, not a current tariff determination for a shipment. Currency changes could affect selling prices and results, and the issuer describes selective forward foreign-exchange contracts as a possible control, without proving complete hedging. Large loans create interest exposure, while receivables and inventories can constrain liquidity. The disclosed 15% preferential income-tax treatment concerns Jushi Group’s high-technology qualification at the stated time; it is not a uniform group tax rate or a guarantee that the concession continues. Routine training counts, honours and management slogans do not demonstrate an operating improvement and are omitted from this account.

The 2017 report describes EU anti-dumping and countervailing measures on specified continuous-filament glass-fiber products exported from China. Its list covers chopped strands no longer than 50 millimetres, specified rovings and glass-fiber mats. It excludes the impregnated/coated rovings with combustible content above 3% specified in the note, and glass-wool mats. For Jushi Group, it cites a combined 24.8% rate from the 2014 final decision and a stated period from 24 December 2014 to March 2016. It then says a 15-month expiry review led to a first-half 2017 disclosure maintaining the original anti-dumping duty. The note does not separately identify each duty component in that later decision or establish a complete continuing combined rate for every product. These measures are relevant to the origin and product mix of exports; they are not a verified current tariff for a shipment, and an overseas sales company alone does not establish that its goods were produced outside China.

The FY 2016 distribution was implemented on 17 May 2017: CNY 608,039,383.50 of cash dividends and 486,431,507 shares issued through capitalization of reserves. The FY 2017 distribution was a later proposal approved by the board on 18 March 2018 and still awaiting shareholders at the time of filing. It proposed CNY 2.50 cash per ten shares, or CNY 729,647,260.25 in total, and two additional shares per ten shares through capitalization of reserves. The proposed 583,717,808 shares would take the total to 3,502,306,849. A proposal for the reporting year is not proof that cash was paid during 2017, and reserve capitalization is not a cash dividend, subscription proceeds or additional operating profit. The proposal drew on parent-company distributable profit, while its disclosed 33.94% payout comparison used CNY 2,149,849,386.80 of consolidated profit attributable to ordinary shareholders. Parent and consolidated earnings are different denominators. The reported parent distributable balance of CNY 894,054,750.42 is not unrestricted group cash.

Cash dividend / 2017 / fy2016 plan executed in 2017

RMB 608,039,383.5

Cash dividend / 2017 / fy2017 proposed distribution

RMB 729,647,260.25

Cash dividend per ten shares / 2017 / fy2017 proposed distribution

2.5 CNY per ten shares

Reserve capitalization shares / 2017 / fy2017 proposed distribution

583,717,808 shares

Proposed share count / 2017 / fy2017 proposed distribution

3,502,306,849 shares

Dividend payout ratio / 2017 / fy2017 proposal consolidated attributable profit

33.94 percent

Distributable profit / 2017 / parent company

RMB 894,054,750.42

The ordinary-share total rose from 2,432,157,534 to 2,918,589,041 because of 486,431,507 shares from capitalization of reserves. Separately,512,372,634 restricted shares became unrestricted: that transfer changed trading restrictions, without adding the same number to total shares. The filing links those restricted shares to the earlier private placement and says the general release took place on 9 January 2017. One beneficiary row gives 8 January instead; the source difference is retained rather than assigning that date to every shareholder. The earlier private-placement issue and its 2016 registration are historical background, not a new 2017 cash financing transaction. These share changes matter when comparing per-share figures and holdings across years, but do not increase total operating earnings. The complete investor-beneficiary list and routine registration details are retained in the evidence archive rather than reproduced as company operating analysis.

Ordinary shares / 2016 / beginning of 2017

2,432,157,534 shares

Ordinary shares / 2017 / end of 2017

2,918,589,041 shares

Reserve capitalization shares / 2017 / executed during 2017

486,431,507 shares

Restricted shares released / 2017 / released during 2017

512,372,634 shares

The report identifies China National Building Material Company Limited as the controlling shareholder, holding 787,211,396 China Jushi shares, or 26.97%, at year end. Its direct shareholding is also shown in the ownership diagram. China National Building Materials Group is separately identified as the actual controller; the two organizations should not be treated as interchangeable names. Zhenshi Holding held 455,107,549 shares, or 15.59%, of which 425,033,318 were pledged. This is a shareholder pledge of listed-company shares, not a mortgage of China Jushi factory assets or an additional issuer loan. The filing says CNBM Company and Zhenshi were not related or acting in concert and says it did not know the relationships among other listed shareholders; that is the issuer’s disclosure, not an independent verification of all beneficial owners. No indirect economic interest is calculated by multiplying the controller’s various holdings. The actual-controller diagram continues across pages: its heading is on page 37 and the diagram is on page 38. It shows CNBM Group and upstream intermediaries above CNBM Company, followed by CNBM Company’s direct 26.97% holding in China Jushi. The diagram supports this distinction between direct ownership and ultimate control; it does not make every upstream percentage a direct holding in China Jushi.

Shareholder shares / 2017 / cnbm company

787,211,396 shares

Shareholder ownership / 2017 / cnbm company

26.97 percent

Shareholder shares / 2017 / zhenshi holding

455,107,549 shares

Shareholder ownership / 2017 / zhenshi holding

15.59 percent

Shareholder pledged shares / 2017 / zhenshi holding

425,033,318 shares

CNBM Group and CNBM Company each gave an undertaking dated 18 December 2017 to address competition between China Jushi and other glass-fiber production and sales enterprises under their control within three years, with an aim to act sooner. The stated options included entrusted management, asset restructuring, equity exchanges and business adjustments, subject to applicable rules and protection of China Jushi shareholders, particularly minority holders. The commitments also stated that the controlling positions would not be used to obtain improper benefits and provided for responsibility for losses caused by non-performance. These are commitments and possible integration mechanisms, not evidence that a particular asset transfer, merger or business reorganization had been completed in 2017. The governance discussion refers back to the same undertaking. It should be read alongside the disclosed ownership and related-business relationships; routine declarations of corporate independence do not erase the disclosed competition issue.

The company and its subsidiaries reported CNY 14,328,017,860 of guarantee occurrence during 2017 and CNY 5,433,483,300 outstanding at year end for subsidiaries. The overall ending guarantee balance was also CNY 5,433,483,300, equivalent to 43.65% of the disclosed net-asset base. The zero figure for external guarantees specifically excludes subsidiaries; it therefore does not mean that all guarantees were zero. CNY 168,582,360 concerned guarantees for entities with an asset-liability ratio above 70%, a subset of the total rather than an extra amount to add to it. Guarantees for shareholders, actual controllers and their related parties were separately reported as zero. Guarantee occurrence is not year-end exposure, and the ending balance is not proof that the guarantor paid the amount, suffered a loss or raised new cash. The statement that all company guarantees were for subsidiaries describes the disclosed perimeter; it does not justify a general conclusion that funding obligations or future default risk were absent.

Guarantee occurrence / 2017 / subsidiary guarantees

RMB 14,328,017,860

Guarantee balance / 2017 / subsidiary guarantees

RMB 5,433,483,300

Reported guarantees to net assets ratio / 2017 / overall ending balance

43.65 percent

Guarantee balance / 2017 / high leverage obligors subset

RMB 168,582,360

The issuer reports an unqualified internal-control audit opinion and refers to a separate internal-control report. That description does not mean SinoFilings content has received independent editorial approval or that every operating risk, accounting judgment or incident has been independently ruled out. Directors’ roles at controlling-shareholder organizations are disclosed, while routine biographies, meeting attendance and compensation procedures are condensed. The report also explains changes in income-statement presentation: relevant government subsidies moved to other income, and non-current asset-disposal gains and losses were presented as asset-disposal income with comparative presentation adjusted. Management says the latter reclassification did not change earnings, total assets or net assets. A reclassification is not an additional cash receipt or a new source of operating profit. The important-matters section reports no major litigation during the year, which is a scoped issuer statement rather than evidence of the absence of all legal, tax or environmental exposures.

Parent-company net profit was CNY 793,277,879.59, with CNY 608,282,742.79 of investment income, including CNY 530 million accounted for under the cost method. The parent balance sheet showed CNY 530 million of dividends receivable, while the parent cash-flow statement reported CNY 50,904,457.00 of cash investment returns. Recognised income, a dividend receivable and cash receipts are different measures; the filing does not support treating all recognised subsidiary dividends as cash received in the year. Parent operating cash flow was negative CNY 873,354,741.08 despite positive consolidated operating cash flow. The two scopes must not be added or substituted. A small source discrepancy also remains in the prior-year distribution executed in 2017: the important-matters section reports CNY 608,039,383.50, while the consolidated and parent equity statements and retained-earnings note show CNY 608,039,383.51. Both printed amounts are preserved with their page references; no reason for the CNY 0.01 difference is established. The separate FY 2017 proposal of CNY 729,647,260.25 is also disclosed as a post-balance-sheet distribution proposal, not as proof of a 2017 payment.

Parent net profit / 2017 / parent company

RMB 793,277,879.59

Parent dividends receivable / 2017 / parent company

RMB 530,000,000

Parent operating cash flow / 2017 / parent company

RMB -873,354,741.08

Distribution in equity statement / 2017 / consolidated retained earnings note

RMB 608,039,383.51

Jushi Group bought minority interests in Jianshi Juhong Mining and Zhejiang Beite Refractory during 2017. The issuer says the purchase consideration was below its relevant consolidated equity interests, increasing capital reserves by CNY 46,389,941.28 and CNY 644,868.69 respectively. The two adjustments total CNY 47,034,809.97, matching the increase in the capital-reserve movement table. These reserve adjustments are distinct from the separate acquisition-related gain on the Zhongfu Lianzhong associate and are not extra glass-fiber operating revenue or profit. Capital reserves moved from CNY 4,461,531,847.94 to CNY 4,022,135,150.91 after the CNY 486,431,507 reserve-funded share increase as well as those adjustments. Reserve capitalisation changes the classification of equity and share count; it does not generate new cash. The cash-flow note separately reports CNY 1,628,260.63 paid for purchases of subsidiary minority interests. The aggregate cash amount is not allocated to either named acquisition without a disclosed breakdown, and it must not be confused with the reserve adjustments. Company names are recorded from the annual report without expanding research into those businesses.

Reserve adjustment on minority-interest purchase / 2017 / jianshi juhong

RMB 46,389,941.28

Reserve adjustment on minority-interest purchase / 2017 / zhejiang beite

RMB 644,868.69

Cash paid for subsidiary minority interests / 2017 / consolidated

RMB 1,628,260.63

The workforce table reports 9,728 employees in total, including 6,374 production staff and 1,576 technical staff. Technical staff is a broader occupational label than the separately disclosed 1,153 research personnel and should not be substituted for it. The same table lists 100 parent-company staff and 9,520 staff of major subsidiaries, which add to 9,620 rather than 9,728. The unexplained 108-person difference is preserved: it is not assigned to smaller subsidiaries, outsourcing or a reporting-date change without evidence. Both the professional categories and education categories total 9,728. Outsourced work is separately reported as 1,161,200 hours and CNY 16,700,000 of remuneration; these are not direct employee numbers, average employee pay or an established measure of production efficiency. The description of future frontline skills and operating-post certification provides staffing context, without quantifying its effect on yields, downtime or customer quality. General welfare provisions, classroom counts and training activities are compressed because the passage does not demonstrate a specific production bottleneck or improvement.

Employee headcount / 2017 / reported total

9,728 people

Employee headcount / 2017 / parent company

100 people

Employee headcount / 2017 / major subsidiaries

9,520 people

Employee headcount / 2017 / production staff

6,374 people

Employee headcount / 2017 / technical staff

1,576 people

Outsourced labour hours / 2017 / reported outsourced work

1,161,200 hours

Outsourced labour cost / 2017 / reported outsourced work

RMB 16,700,000

The environmental passage says the company passed its third expert review of cleaner production in December 2017, reported no major environmental problem during the year and said all production bases met discharge standards. These are issuer statements in the annual report. The short passage does not identify individual permits, measured emissions, limits, monitoring results or enforcement records for each base, so it does not independently establish compliance across every facility or jurisdiction. A cleaner-production review is not proof that every subsequent production line obtained all operating approvals, and the absence of a reported major problem is not a universal no-risk conclusion. The filing refers separately to its 2017 social-responsibility report, which has not been processed for this historical account. Routine poverty-relief activities and small community donations are kept in the source archive because these pages do not connect them to production access, operating restrictions or a material shareholder effect.

The construction note names a phase-I furnace cold-repair project without identifying its site in that row. It records CNY 160,138,126.93 of additions, CNY 158,738,867.66 transferred to fixed assets and CNY 55,649,197.77 still in construction at year end, funded by own funds and borrowings. This row alone is insufficient to attach those amounts to a particular historical site. Separately, phase II of the 360,000-tonne-per-year glass-fiber production-line renovation programme is marked 100% physically complete and financed with raised funds. Its printed budget is CNY 554,195,000, while the CNY 598,862,634.97 opening balance plus CNY 37,770,420.57 of additions equals the CNY 636,633,055.54 transferred to fixed assets. The same row reports budget utilisation of 99.92%. The filing does not explain the difference between that budget, the accounting movement and the utilisation percentage; all are retained without inventing a revised budget or treating the programme name as an incremental capacity addition.

Construction-note additions / 2017 / phase i cold repair

RMB 160,138,126.93

Construction-note transfer to fixed assets / 2017 / phase i cold repair

RMB 158,738,867.66

Construction-note balance / 2017 / phase i cold repair

RMB 55,649,197.77

Disclosed project budget / 2017 / 360kt renovation phase ii

RMB 554,195,000

Construction-note transfer to fixed assets / 2017 / 360kt renovation phase ii

RMB 636,633,055.54

Management says the 100,000-tonne-per-year unsaturated-polyester resin line was completed and put into production during 2017, supporting a combined glass-fiber and resin offering for composite materials. The financial construction note calls it a production-line renovation project and retains CNY 86,790,535.52 in construction, after CNY 79,140,025.66 of additions. Its budget is CNY 186,417,500, with 46.56% budget utilisation and 50% physical progress, funded by own funds and borrowings. These source descriptions coexist: the report does not provide a component or phase explanation that reconciles commissioning with the financial progress figure. Nominal resin capacity is not glass-fiber capacity, and commissioning is not evidence of full-year output, sales or utilisation.

Project budget / 2017 / resin renovation

RMB 186,417,500

Construction-note additions / 2017 / resin renovation

RMB 79,140,025.66

Construction-note balance / 2017 / resin renovation

RMB 86,790,535.52

Construction-note physical progress / 2017 / resin renovation

50 percent

Management reports commissioning Tongxiang Leishi’s 600,000-tonne-per-year pyrophyllite-powder project in 2017 and presents it as upstream supply integration for glass-fiber production. The financial construction note describes a Jushi Group expansion project for the same named product and nominal scale. It records CNY 128,701,064.04 of additions and CNY 129,237,926.64 remaining in construction against a CNY 336 million budget, with 38.46% budget utilisation and 40% physical progress. The note identifies own funds and borrowings as financing sources. It does not explain why that progress measure differs from the management commissioning statement. The two presentations are retained under explicit scopes; powder-processing capacity is not mine reserves, glass-fiber output or proof that every furnace was supplied internally.

Project budget / 2017 / pyrophyllite expansion

RMB 336,000,000

Construction-note additions / 2017 / pyrophyllite expansion

RMB 128,701,064.04

Construction-note balance / 2017 / pyrophyllite expansion

RMB 129,237,926.64

Construction-note physical progress / 2017 / pyrophyllite expansion

40 percent

The construction table names a Jiujiang alkali-free glass-fiber line of 120,000 tonnes per year, with a CNY 431,369,200 budget, CNY 235,630,851.87 of additions and CNY 238,410,205.74 remaining in construction. It reports 55.27% budget utilisation, 50% physical progress and CNY 12,916.67 of capitalised interest. Another note describes a proposed Jiujiang renovation of 200,000 tonnes per year, with the same printed CNY 431,369,200 investment, a late-2017 start and a one-year construction period. A shared budget does not establish that the two capacity labels describe the same project. They are retained as separate source references pending identity evidence. For a separately named 30,000-tonne-per-year high-performance line renovation, the construction table reports CNY 146,883,236.13 as both current-year additions and the closing construction balance, with a CNY 94,674,600 budget, 73.36% budget utilisation and 90% physical progress. Its opening balance and fixed-asset transfer cells are blank. The other-matters note describes a late-2017 start and a one-year construction period. No transfer of CNY 146,883,236.13 to fixed assets is disclosed in that row, and the budget, recorded investment and progress percentage do not reconcile on the stated figures. No reason for these scope differences is established.

Disclosed project budget / 2017 / jiujiang 120kt table label

RMB 431,369,200

Construction-note additions / 2017 / jiujiang 120kt table label

RMB 235,630,851.87

Construction-note balance / 2017 / jiujiang 120kt table label

RMB 238,410,205.74

Construction-note physical progress / 2017 / jiujiang 120kt table label

50 percent

Disclosed project budget / 2017 / jiujiang 30kt renovation

RMB 94,674,600

Construction-note additions / 2017 / jiujiang 30kt renovation

RMB 146,883,236.13

Construction-note balance / 2017 / jiujiang 30kt renovation

RMB 146,883,236.13

Construction-note physical progress / 2017 / jiujiang 30kt renovation

90 percent

The Tongxiang new-materials intelligent manufacturing base is a phased programme, rather than a single completed line. Management’s five-year plan describes three alkali-free glass-fiber lines and three electronic-yarn and fabric lines, with planned annual capacities of 450,000 tonnes of glass fiber, 180,000 tonnes of electronic yarn and 800 million metres of fabric. The other-matters note puts the production-line expansion investment at CNY 9,323,477,000, including CNY 700 million for a new headquarters building. Separately, the construction table labels phase I as a 300,000-tonne-per-year intelligent glass-fiber programme, with a CNY 1,471,166,700 budget, CNY 66,405,565.64 of current-year additions and CNY 67,736,324.25 remaining in construction. It reports 4.60% budget utilisation and 5% physical progress, financed through own funds and borrowings. The base-wide investment, headquarters component, phase-I construction account and individual later lines are distinct perimeters. The report does not establish that the phase-I label is itself incremental operational capacity at year end.

Base expansion budget / 2017 / whole base expansion

RMB 9,323,477,000

Headquarters budget / 2017 / headquarters component

RMB 700,000,000

Project budget / 2017 / 300kt programme phase i

RMB 1,471,166,700

Construction-note additions / 2017 / 300kt programme phase i

RMB 66,405,565.64

Construction-note balance / 2017 / 300kt programme phase i

RMB 67,736,324.25

Construction-note physical progress / 2017 / 300kt programme phase i

5 percent

Egypt’s 40,000-tonne-per-year third-phase line was formally put into production in 2017 according to management. The construction table marks it 100% physically complete and records CNY 631,385,028.61 transferred to fixed assets, CNY 475,871,316.99 of additions and CNY 6,417,169.43 of other decreases. Its CNY 673,994,800 budget and 94.63% budget utilisation are separately reported. The older 80,000-tonne-per-year second-phase line is also marked 100% complete; its remaining CNY 22,550,801.54 opening construction balance plus CNY 8,029,880.08 of additions is reduced by CNY 30,490,881.59 transferred to fixed assets and CNY 89,800.03 of other decreases. Both line rows identify raised funds as their financing source. A separate Egypt production-base support-works row adds and retains CNY 95,785,103.75 in construction, financed by own funds and borrowings. Continuing support works do not overturn the disclosed commissioning of the lines, nor do they establish extra furnace capacity. The filing does not identify the nature of the other decreases, so they are not described as cash savings or operating losses.

Disclosed project budget / 2017 / egypt 40kt phase iii

RMB 673,994,800

Construction-note transfer to fixed assets / 2017 / egypt 40kt phase iii

RMB 631,385,028.61

Construction-note other decreases / 2017 / egypt 40kt phase iii

RMB 6,417,169.43

Construction-note transfer to fixed assets / 2017 / egypt 80kt phase ii

RMB 30,490,881.59

Construction-note other decreases / 2017 / egypt 80kt phase ii

RMB 89,800.03

Construction-note additions / 2017 / egypt base support

RMB 95,785,103.75

Construction-note balance / 2017 / egypt base support

RMB 95,785,103.75

Management describes the US 80,000-tonne-per-year alkali-free glass-fiber project as entering full construction of factory buildings and utilities during 2017. Its construction account adds CNY 298,233,708.78 to the CNY 4,940,407.58 opening balance, leaving CNY 303,174,116.36 at year end. The table gives a CNY 2,052,632,700 budget, 14.77% budget utilisation and 15% physical progress, with own funds and borrowings as financing sources. Those reported amounts are denominated in renminbi, even though the physical project is in the United States. They do not prove commissioning, commercial output or capacity utilisation in 2017. The planned continuation in the 2018 operating programme is a forward-looking statement as reported in this annual filing.

Project budget / 2017 / us 80kt

RMB 2,052,632,700

Construction-note additions / 2017 / us 80kt

RMB 298,233,708.78

Construction-note balance / 2017 / us 80kt

RMB 303,174,116.36

Construction-note physical progress / 2017 / us 80kt

15 percent

The filing proposes a 100,000-tonne-per-year alkali-free glass-fiber line in phase II of the Talegaon industrial zone, Pune, Maharashtra, India. It describes a proposed company with a provisional name, a two-year construction period and total investment of USD 245,558,900, printed as 24,555.89 ten-thousand US dollars. Management describes the project as being advanced and includes it in the following-year programme; that is not evidence of a commissioned factory. The proposed zone and city are retained as the issuer’s location statement, without assigning a verified street address or coordinates. The dollar proposal must not be added directly to the renminbi construction budgets, and a two-year schedule is not a verified completion date.

Project budget / 2017 / india proposal

245,558,900 USD