China Jushi FY2017: Manufacturing bases

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