China Jushi FY2017: Projects and construction progress

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