China Jushi FY2017: Cash generation and working capital

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