China Jushi FY2018: Cash generation and working capital

The fiber-product materials-cost line was CNY 1,745,887,091.08, up 21.32%. Its printed 31.70% share uses the table's total-cost denominator; it should not be relabelled as a share of fiber-product cost alone. Selling expense was CNY 385,689,900.71, administrative expense CNY 538,109,752.92 and finance expense CNY 341,228,910.80. Management links selling expense growth to transport, administration growth to remuneration and depreciation, and lower finance expense to interest and exchange gains. These explanations do not quantify a separate freight-price, wage-rate or hedging effect. Research expense and commercialization stages remain separately described. Later-year changes in the classification of contract-fulfilment expenses require an explicit accounting-basis comparison before treating a falling selling-expense line as an efficiency gain.

Fiber-product materials-cost line / 2018 / FY2018 A share/CAS. Management discussion, stated category and denominator retained; not factory output or customer level allocation.

RMB 1,745,887,091.08

Selling expense / 2018 / FY2018 A share/CAS. Management discussion, stated category and denominator retained; not factory output or customer level allocation.

RMB 385,689,900.71

Administrative expense / 2018 / FY2018 A share/CAS. Management discussion, stated category and denominator retained; not factory output or customer level allocation.

RMB 538,109,752.92

Finance expense / 2018 / FY2018 A share/CAS. Management discussion, stated category and denominator retained; not factory output or customer level allocation.

RMB 341,228,910.8

The treasury overview reports CNY 848,000,000.00 of bank-product occurrences using raised funds and CNY 1,004,900,000.00 using own funds. Outstanding amounts were CNY 55,000,000.00 and CNY 25,000,000.00 respectively; overdue unrecovered amounts were reported as zero in both categories. The detailed product schedule includes contracts starting in 2017 as well as 2018 and prints a different contract-amount total of CNY 2,252,900,000.00. The overview and detail are retained as distinct reporting scopes rather than forced into one annual purchase total. Bank-product labels and reported recoveries are issuer disclosures, not an independent guarantee of liquidity. The outstanding amounts are not cash already available for construction, and repeated placements are not unique capital committed.

Overview raised-fund product occurrences / 2018 / FY2018 A share/CAS. Overview occurrence versus detail contracts including prior year starts; not mutually reconciled annual flows.

RMB 848,000,000

Overview own-fund product occurrences / 2018 / FY2018 A share/CAS. Overview occurrence versus detail contracts including prior year starts; not mutually reconciled annual flows.

RMB 1,004,900,000

Outstanding raised-fund bank products / 2018 / FY2018 A share/CAS. Overview occurrence versus detail contracts including prior year starts; not mutually reconciled annual flows.

RMB 55,000,000

Outstanding own-fund bank products / 2018 / FY2018 A share/CAS. Overview occurrence versus detail contracts including prior year starts; not mutually reconciled annual flows.

RMB 25,000,000

Detailed schedule contract amounts, mixed start years / 2018 / FY2018 A share/CAS. Overview occurrence versus detail contracts including prior year starts; not mutually reconciled annual flows.

RMB 2,252,900,000

The related-party trade-receivable schedule has CNY 41,025,563.17 of gross closing balances and CNY 1,732,285.77 of bad-debt allowances. The separate payable schedule has CNY 52,157,576.20 of closing trade payables, including equipment, transport and materials. These are closing credit and supplier obligations rather than annual sales or purchases, and no automatic netting between counterparties is disclosed here. The allowance is retained separately from gross receivables. The schedules do not establish payment collection, absence of impairment or an amount of prohibited shareholder fund occupation.

Gross related trade receivables / 2018 / FY2018 A share/CAS. Gross trade receivables, associated allowance and trade payables kept separate; no automatic offset.

RMB 41,025,563.17

Related trade-receivable allowance / 2018 / FY2018 A share/CAS. Gross trade receivables, associated allowance and trade payables kept separate; no automatic offset.

RMB 1,732,285.77

Related trade payables / 2018 / FY2018 A share/CAS. Gross trade receivables, associated allowance and trade payables kept separate; no automatic offset.

RMB 52,157,576.2

The issuer says it adopted the 2018 financial-statement format for entities not yet applying the new financial-instrument and revenue standards from 1 January 2018. It reports no effect from the format change on total assets, net assets or net profit. Separately, the bond-data note explains a retrospective reclassification of CNY 8,700,000 of asset-related government grants received in 2017 from financing receipts to operating receipts. The change affects the prior operating/financing presentation rather than new customer receipts in 2018. Comparisons with earlier reported cash flows require the same classification; no assumption of identical accounting scope across years is made.

FY2017 asset-grant cash reclassified from financing to operating / 2017 / FY2018 A share/CAS. FY2017 cash, retrospectively reclassified inFY2018 presentation; not new2018 cash.

RMB 8,700,000

Closing monetary funds were CNY 1,503,701,612.91, including CNY 15,625,544.82 of restricted deposits. The cash-flow note reports closing cash of CNY 1,488,076,068.09: the difference equals those restricted deposits. Deducting the deposit again from cash-flow cash would double-count the restriction. The separate restricted-asset schedule also lists CNY 2,056,773,485.07 of property, plant and equipment subject to mortgage borrowing or finance leases and CNY 24,132,885.27 of mortgaged intangible assets. Those are asset carrying values, not an additional debt balance, a cash payment or evidence that a factory stopped operating. Monetary funds held abroad were CNY 352,737,858.28; location abroad does not identify currency denomination or demonstrate unrestricted transferability to the parent.

Monetary funds / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 1,503,701,612.91

Restricted deposits / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 15,625,544.82

Cash-flow closing cash / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 1,488,076,068.09

Restricted PPE carrying value / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 2,056,773,485.07

Restricted intangible carrying value / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 24,132,885.27

Monetary funds held abroad / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 352,737,858.28

The closing bill-and-trade-receivable total of CNY 3,364,297,569.50 comprises CNY 2,117,015,017.29 of bills and CNY 1,247,282,552.21 of net trade receivables. Gross trade receivables were CNY 1,372,416,076.25 with a CNY 125,133,524.04 allowance. The note reports CNY 25,000,000.00 of bills transferred to receivables because the bill drawer failed to perform, rather than a disclosed failure by China Jushi; its table labels these bank acceptances. A separate individually impaired receivable to Baota Petrochemical Finance was CNY 25,000,000.00 and fully provided. This is a credit impairment disclosure, not evidence of customer collection or additional sales. The aging-based subset is narrower than all receivables: CNY 30,459,582.21 was older than five years and fully provided within that subset. Bill balances cannot simply be added to reported cash or treated as risk-free receipts. Counterparties are recorded from this filing without extending their investigation.

The note reports an opening trade-receivable allowance of CNY 150,351,916.53, a current-year charge of CNY 106,542,565.98, no recovery or reversal, and write-offs of CNY 131,968,056.00. These movements do not by themselves reconcile to the reported closing allowance of CNY 125,133,524.04: opening plus charge minus write-offs leaves an unexplained CNY 207,097.53 difference. This derived difference is isolated rather than attributed to exchange rates or labeled a proven error. The named important write-off subtotal of CNY 129,830,120.87 is smaller than all write-offs and must not replace their total. Write-offs are not recovered cash, and the allowance movement is not a measure of new customer orders. A complete movement explanation is not supplied in the inspected passage.

Opening trade-receivable allowance / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only. Opening versus closing and annual movements remain distinct; incomplete bridge.

RMB 150,351,916.53

Annual trade-receivable allowance charge / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only. Opening versus closing and annual movements remain distinct; incomplete bridge.

RMB 106,542,565.98

Annual trade-receivable write-offs / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only. Opening versus closing and annual movements remain distinct; incomplete bridge.

RMB 131,968,056

Named important write-off subtotal / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only. Opening versus closing and annual movements remain distinct; incomplete bridge.

RMB 129,830,120.87

Other receivables had gross closing value of CNY 146,740,695.53, an allowance of CNY 8,094,653.24 and net value of CNY 138,646,042.29. The gross categories include operating advances of CNY 39,554,151.72, export tax refunds receivable of CNY 33,390,393.07, security deposits of CNY 26,063,967.73 and deposits of CNY 25,689,273.04. These are different claims and operating uses of funds, not extra product revenue or cash received. A named CNY 5,000,000.00 land-transaction deposit in Tongxiang does not establish an acquired site or a completed project. The inspected allowance figures also do not supply a complete movement bridge: opening plus the reported charge minus write-offs differs from closing by CNY 24,600.00. No exchange-rate explanation is invented.

Closing inventory was CNY 1,675,117,236.63, versus CNY 1,329,383,849.68 at opening. It comprises raw materials of CNY 567,062,073.17, finished goods of CNY 939,584,771.08, turnover materials of CNY 50,667,572.59 and shipped goods of CNY 117,802,819.79. The carrying-value table supplies no separate impairment amount in these rows and marks the impairment heading not applicable; this does not independently establish zero obsolescence or strong demand. Inventory values are not production tonnes, capacity utilization or confirmed orders. Shipped goods are not automatically recognized revenue: the audit describes the historical risks-and-rewards recognition basis. The increase in inventory value matches the negative inventory adjustment in the operating cash reconciliation.

Closing inventory / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 1,675,117,236.63

Opening inventory / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 1,329,383,849.68

Raw-material inventory / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 567,062,073.17

Finished-goods inventory / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 939,584,771.08

Turnover-material inventory / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 50,667,572.59

Shipped-goods inventory / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 117,802,819.79

Other current assets comprise CNY 384,356,853.92 of VAT awaiting deduction and prepaid taxes plus CNY 80,000,000.00 of bank products. Their total is CNY 464,356,853.92. The tax category is not a cash refund already received, a deferred-tax asset or a factory-specific subsidy. The bank-product balance matches the treasury overview's outstanding raised-fund and own-fund products, so it is not another pool to add to that overview. Current-asset classification alone does not demonstrate immediate access to funds for construction.

VAT awaiting deduction and prepaid taxes / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 384,356,853.92

Closing bank products in current assets / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 80,000,000

Other current assets / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 464,356,853.92

Closing trade payables were CNY 1,940,064,796.86, including equipment of CNY 325,104,605.63 and construction of CNY 812,283,292.80. Bills payable were separately CNY 1,509,872,453.83. These obligations link production investment and procurement to supplier credit; equipment and construction balances are not cash paid during the year or allocations to a specific new line. The note identifies certain aged payables as not yet due under their contracts, without establishing that every payable was current. Customer goods advances were CNY 143,720,442.55; the older significant advances were attributed to unexecuted contracts. Advances are not recognized sales or a complete order book, and this filing does not map them to individual projects.

Closing trade payables / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 1,940,064,796.86

Closing bills payable / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 1,509,872,453.83

Equipment payables / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 325,104,605.63

Construction payables / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 812,283,292.8

Customer goods advances / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 143,720,442.55

The consolidated cash reconciliation starts from net profit including minority interests of CNY 2,384,834,658.94 and ends at operating cash of CNY 3,862,006,789.83. Property, plant and equipment depreciation of CNY 981,135,566.04 is a noncash adjustment, not new construction expenditure. The bridge includes a negative inventory adjustment of CNY 345,733,386.95, a negative operating-receivable adjustment of CNY 4,660,257,291.47 and a positive operating-payable adjustment of CNY 5,029,352,530.65, alongside other printed adjustments. These bridge categories are not simply changes in the two trade-receivable and trade-payable closing rows, so a simple balance subtraction is insufficient. Customer cash receipts in the direct cash statement were CNY 8,021,389,487.29, distinct from recognized consolidated revenue. This explains why profit growth and product demand do not by themselves describe cash collected or the funds remaining after plant investment.

Consolidated net profit including minorities / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 2,384,834,658.94

Net operating cash / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 3,862,006,789.83

PPE depreciation cash bridge adjustment / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 981,135,566.04

Negative inventory cash bridge adjustment / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB -345,733,386.95

Negative operating-receivable cash bridge adjustment / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB -4,660,257,291.47

Positive operating-payable cash bridge adjustment / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 5,029,352,530.65

Customer cash receipts / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 8,021,389,487.29

Goodwill remained CNY 472,512,501.24. Two large named balances were CNY 176,839,725.90 for Tongxiang Jinshi Precious Metal Equipment and CNY 189,612,641.95 for Tongxiang Leishi Powder. The issuer says it tested recoverability using discounted forecast cash flows and found no evident impairment, recognizing no provision. It reports discount rates of12.17%-14.68% and describes an indefinite income horizon for the raw-material asset groups. These are valuation assumptions, not proof of indefinite operation or actual future cash. The inspected passage does not supply a numerical sales-growth or sensitivity bridge for each group; no safety margin or acquisition synergy is invented from the absence of a provision.

Total goodwill / 2018 / FY2018 A share/CAS.

RMB 472,512,501.24

Tongxiang Jinshi goodwill / 2018 / FY2018 A share/CAS.

RMB 176,839,725.9

Tongxiang Leishi goodwill / 2018 / FY2018 A share/CAS.

RMB 189,612,641.95

Deferred-tax assets totaled CNY 169,465,581.04 before offsetting, including CNY 150,552,047.66 attributable to unrealized profit on internal transactions. Management links their increase to that internal-profit timing difference, not additional customer cash. Deferred-tax liabilities totaled CNY 262,024,127.84, including CNY 209,705,907.26 from differences between accounting and tax depreciation. These balances are not taxes paid, tax refunds already received or project grants. Deductible losses of CNY 102,358,777.35 were listed without recognized deferred-tax assets, with an expiry schedule; this is the loss base rather than the value of a guaranteed tax benefit. Current-tax expense, cash payments and jurisdiction-specific policies are separate measures, explained in the companion income-tax discussion. Deferred-tax balances alone do not establish cash available for operations.

Consolidated income-tax expense was CNY 439,193,672.71: current tax of CNY 423,944,741.51 and deferred tax of CNY 15,248,931.20. These are expense measures, not cash paid. The historical tax note lists 25% for the listed parent, 22.50% for the Egyptian subsidiary and 15% for several named Chinese operating subsidiaries. Applying the parent's rate to group profit therefore gives a different result: the reconciliation starts at CNY 706,007,082.91 and includes a negative CNY 283,549,855.32 effect from subsidiary rates, alongside associate income, loss utilization and other adjustments. These issuer-reported rates concern FY2018, not a uniform group rate or current tax entitlement.

Group tax expense / 2018 / FY2018 A share/CAS.

RMB 439,193,672.71

Current tax expense / 2018 / FY2018 A share/CAS.

RMB 423,944,741.51

Deferred tax expense / 2018 / FY2018 A share/CAS.

RMB 15,248,931.2

Signed subsidiary-rate reconciliation effect / 2018 / FY2018 A share/CAS.

RMB -283,549,855.32

The profit statement records a CNY 31,466,534.31 fair-value loss across trading assets and liabilities. Separately, precious-metal forward investment income was CNY 7,662,936.02; the cash-flow note also identifies CNY 7,662,936.02 of precious-metal forward cash receipts. The matching amount supports that particular receipt, not a general conclusion that all derivative gains or losses were cash settled. It also does not establish that metal purchase costs or currency exposure were fully hedged.

Signed fair-value change / 2018 / FY2018 A share/CAS.

RMB -31,466,534.31

Precious-metal forward investment income / 2018 / FY2018 A share/CAS.

RMB 7,662,936.02

Precious-metal forward cash receipts / 2018 / FY2018 A share/CAS.

RMB 7,662,936.02

The issuer's non-recurring schedule totals negative CNY 21,730,558.62 after its signed tax and minority adjustments. It combines disposal losses, a qualifying government-subsidy category, fair-value losses, other non-operating items and precious-metal forward income. The total is not a single cash loss or a measure of all grants. Its negative sign means the reported non-recurring aggregate reduced attributable profit under that schedule; interpreting operating performance still requires the product, capacity, demand and cash evidence described elsewhere.

Signed after-adjustment non-recurring aggregate / 2018 / FY2018 A share/CAS.

RMB -21,730,558.62

The issuer describes customer credit checks, monitoring and special approval before extending credit for transactions outside an operating entity's functional currency. It states that trade receivables had no collateral or other credit enhancement and describes no significant credit-risk concentration across its diversified customer base. These are its controls and assessment, not an independent finding that losses cannot occur. The disclosed defaulted bills and receivable allowances must still be read alongside this description. Similarly, matching currencies and maturities through foreign-exchange forwards, and using foreign-currency liabilities at overseas entities, describe risk-management mechanisms without establishing complete hedge coverage. The reported liabilities-to-assets ratio was 51.99%, compared with 49.36% a year earlier; it is not an interest-bearing-debt-only leverage measure.

Issuer-reported liabilities-to-assets ratio / 2018 / FY2018 year end disclosed in FY2018 A share/CAS.

51.99%

Prior issuer-reported liabilities-to-assets ratio / 2017 / FY2017 year end disclosed in FY2018 A share/CAS.

49.36%

Closing prepayments were CNY 130,302,791.00, compared with CNY 317,865,067.80 at opening. CNY 127,207,095.19, or 97.62%, was aged within one year. The issuer explains significant older unsettled prepayments as not yet reaching their contractual settlement dates. The five largest recipients represented 32.50% of the balance. These balances are payments in advance, separate from operating advances classified under other receivables; a decrease alone does not identify deliveries, refunds or a change in supplier terms. A different non-current account contains CNY 63,920,375.00 of land-concession prepayment. The table's opening cell is blank, which is not encoded as zero or equated with FY2018 cash spending. The account identifies a land-acquisition stage, not equipment delivered or a registered land-use right. This note gives no parcel, completed-title evidence or direct allocation to a named project, so it cannot supply a verified project address or establish that a factory has acquired the site.

Closing prepayments / 2018 / FY2018 A share/CAS.

RMB 130,302,791

Opening prepayments / 2018 / FY2018 A share/CAS.

RMB 317,865,067.8

Closing prepayments aged within one year / 2018 / FY2018 A share/CAS.

RMB 127,207,095.19

Closing non-current land-concession prepayment / 2018 / FY2018 A share/CAS.

RMB 63,920,375

Transport was the largest disclosed component of selling expense: CNY 313,031,294.15 in FY2018, compared with CNY 258,759,173.56 in FY2017. Total selling expense increased from CNY 321,286,725.11 to CNY 385,689,900.71, and management identifies increased transport expense as its explanation. Separately classified port and customs charges were CNY 21,299,972.01, compared with CNY 12,804,303.22. These amounts show the financial scale of distribution under this year's accounting classification. They do not identify freight per tonne, routes, customer delivery terms or a freight-price versus shipment-volume effect. The separate administrative-expense transport category is outside this selling-expense total, so this table is not a complete all-company logistics-cost measure. A later reclassification of contract-fulfilment costs would require a comparable basis before interpreting a lower selling-expense ratio as an operating improvement.

Transport in selling expense FY2018 / 2018 / FY2018 A share/CAS, consolidated. 2018 annual amount; employee obligation movements, cash payments and expense categories are distinct.

RMB 313,031,294.15

Transport in selling expense FY2017 / 2017 / FY2018 A share/CAS, consolidated. 2017 annual amount; employee obligation movements, cash payments and expense categories are distinct.

RMB 258,759,173.56

Selling expense FY2018 / 2018 / FY2018 A share/CAS, consolidated. 2018 annual amount; employee obligation movements, cash payments and expense categories are distinct.

RMB 385,689,900.71

Selling expense FY2017 / 2017 / FY2018 A share/CAS, consolidated. 2017 annual amount; employee obligation movements, cash payments and expense categories are distinct.

RMB 321,286,725.11

Port and customs charges FY2018 / 2018 / FY2018 A share/CAS, consolidated. 2018 annual amount; employee obligation movements, cash payments and expense categories are distinct.

RMB 21,299,972.01

Port and customs charges FY2017 / 2017 / FY2018 A share/CAS, consolidated. 2017 annual amount; employee obligation movements, cash payments and expense categories are distinct.

RMB 12,804,303.22

The employee-compensation payable roll-forward opened at CNY 23,837,362.23, recorded additions of CNY 1,018,971,889.83 and reductions of CNY 996,340,652.30, and closed at CNY 46,468,599.76. Additions comprise short-term compensation of CNY 949,516,826.22, defined-contribution post-employment benefits of CNY 68,085,493.55 and termination benefits of CNY 1,369,570.06. This is a movement in employee obligations, rather than a production-labor-only expense or a payroll cash-flow statement. Consolidated cash paid to and for employees was CNY 891,718,514.33; the filing does not provide a complete item-by-item bridge from that cash row to reductions in this payable note. Administrative expense separately includes employee compensation of CNY 279,369,727.85, compared with CNY 254,902,212.69, and depreciation of CNY 34,592,373.23, compared with CNY 32,801,252.02. Management's remuneration and depreciation explanation therefore has disclosed components, but does not isolate wage-rate increases from staffing, job mix or asset additions. Do not add these expense categories to the total payable additions or divide them by year-end headcount to invent average pay. Routine welfare and education-fund movements are kept in the evidence archive; they do not establish measured training outcomes, a named factory disruption or the reason for termination benefits.

Opening employee compensation payable / 2018 / FY2018 A share/CAS, consolidated. 2018 opening balance; employee obligation movements, cash payments and expense categories are distinct.

RMB 23,837,362.23

Employee compensation payable additions / 2018 / FY2018 A share/CAS, consolidated. 2018 annual amount; employee obligation movements, cash payments and expense categories are distinct.

RMB 1,018,971,889.83

Employee compensation payable reductions / 2018 / FY2018 A share/CAS, consolidated. 2018 annual amount; employee obligation movements, cash payments and expense categories are distinct.

RMB 996,340,652.3

Closing employee compensation payable / 2018 / FY2018 A share/CAS, consolidated. 2018 closing balance; employee obligation movements, cash payments and expense categories are distinct.

RMB 46,468,599.76

Short-term compensation additions / 2018 / FY2018 A share/CAS, consolidated. 2018 annual amount; employee obligation movements, cash payments and expense categories are distinct.

RMB 949,516,826.22

Defined-contribution compensation additions / 2018 / FY2018 A share/CAS, consolidated. 2018 annual amount; employee obligation movements, cash payments and expense categories are distinct.

RMB 68,085,493.55

Termination-benefit additions / 2018 / FY2018 A share/CAS, consolidated. 2018 annual amount; employee obligation movements, cash payments and expense categories are distinct.

RMB 1,369,570.06

Cash paid to and for employees / 2018 / FY2018 A share/CAS, consolidated. 2018 annual amount; employee obligation movements, cash payments and expense categories are distinct.

RMB 891,718,514.33

Administrative employee compensation FY2018 / 2018 / FY2018 A share/CAS, consolidated. 2018 annual amount; employee obligation movements, cash payments and expense categories are distinct.

RMB 279,369,727.85

Administrative employee compensation FY2017 / 2017 / FY2018 A share/CAS, consolidated. 2017 annual amount; employee obligation movements, cash payments and expense categories are distinct.

RMB 254,902,212.69

Administrative depreciation FY2018 / 2018 / FY2018 A share/CAS, consolidated. 2018 annual amount; employee obligation movements, cash payments and expense categories are distinct.

RMB 34,592,373.23

Administrative depreciation FY2017 / 2017 / FY2018 A share/CAS, consolidated. 2017 annual amount; employee obligation movements, cash payments and expense categories are distinct.

RMB 32,801,252.02

Tax payables closed FY2018 at CNY 418,385,964.97, compared with an opening balance of CNY 291,210,706.78. Corporate income tax within that total was CNY 303,161,315.71 at year-end, versus CNY 200,539,388.84 at the beginning of the year. These are reporting-date tax obligations, rather than tax payments or income-tax expense for the year; the table does not establish that the balances are overdue. Consolidated cash paid for taxes was CNY 695,793,932.47, compared with CNY 798,508,425.42 in FY2017. That cash-flow row covers all taxes and is not identified as income-tax-only cash payments. It therefore differs in scope from the current and deferred income-tax expense explained separately on this page. Tax refunds appear as a separate cash receipt, and prepaid tax or VAT offsets and deferred-tax assets have different classifications. The inspected rows do not supply a complete bridge by tax between accruals, unpaid balances and payments. They cannot establish an income-tax cash rate or explain the movement in operating cash solely through the increase in tax payables.

Opening tax payables / 2018 / FY2018 A share/CAS, consolidated. 2018 opening balance; unpaid tax balance and cash paid for all taxes are distinct from income tax expense.

RMB 291,210,706.78

Closing tax payables / 2018 / FY2018 A share/CAS, consolidated. 2018 closing balance; unpaid tax balance and cash paid for all taxes are distinct from income tax expense.

RMB 418,385,964.97

Opening corporate income tax payable / 2018 / FY2018 A share/CAS, consolidated. 2018 opening balance; unpaid tax balance and cash paid for all taxes are distinct from income tax expense.

RMB 200,539,388.84

Closing corporate income tax payable / 2018 / FY2018 A share/CAS, consolidated. 2018 closing balance; unpaid tax balance and cash paid for all taxes are distinct from income tax expense.

RMB 303,161,315.71

Cash paid for all taxes FY2018 / 2018 / FY2018 A share/CAS, consolidated. 2018 annual amount; unpaid tax balance and cash paid for all taxes are distinct from income tax expense.

RMB 695,793,932.47

Cash paid for all taxes FY2017 / 2017 / FY2018 A share/CAS, consolidated. 2017 annual amount; unpaid tax balance and cash paid for all taxes are distinct from income tax expense.

RMB 798,508,425.42

The impairment-expense note identifies bad-debt expense of CNY 108,970,813.40 for FY2018, compared with CNY 40,043,501.51 in FY2017. This is an expense recognized in profit, rather than customer cash recovered or the amount of receivables written off. The separate trade-receivable and other-receivable notes report allowance charges of CNY 106,542,565.98 and CNY 2,397,255.74. Their sum is CNY 30,991.68 below the bad-debt expense total; the inspected passages do not supply a complete bridge explaining that difference. It is retained as a scope-reconciliation question, without assuming an exchange-rate cause or a proven reporting error. This comparison is distinct from the unresolved opening-to-closing allowance movements described alongside the receivable balances. The higher expense establishes the recorded credit-loss burden for this year; it does not by itself quantify a change in demand, identify future recoveries or prove that every bill or customer account deteriorated.

Bad-debt expense FY2018 / 2018 / FY2018 A share/CAS, consolidated. 2018 annual bad debt expense; distinct from allowance charges, write offs and cash collections.

RMB 108,970,813.4

Bad-debt expense FY2017 / 2017 / FY2018 A share/CAS, consolidated. 2017 annual bad debt expense; distinct from allowance charges, write offs and cash collections.

RMB 40,043,501.51

Within other financing cash receipts, the issuer identifies CNY 377,918,333.31 from bill discounting and CNY 19,384,730.95 from raised-fund and investment-management income. It also reports CNY 15,000,000.00 of finance-lease deposits recovered. These are specifically classified financing receipts, rather than additional product revenue or new orders; the aggregate rows do not allocate the proceeds to a named factory or identify every financing instrument. Other financing cash payments include CNY 101,499,814.41 of finance-lease payments. That is cash paid during FY2018 and differs from the contractual minimum payments remaining at year-end explained separately. Recovery of a lease deposit likewise differs from the outstanding lease liability and from recognition of a leased production asset. Customer collections, bill discounting, ordinary borrowing and lease cash therefore need their disclosed cash-flow classifications when assessing how construction and operations were funded.

Bill-discounting financing receipts FY2018 / 2018 / FY2018 A share/CAS, consolidated. FY2018 other financing cash flow category; not closing debt, project expenditure or product revenue.

RMB 377,918,333.31

Raised-fund and investment-management financing receipts FY2018 / 2018 / FY2018 A share/CAS, consolidated. FY2018 other financing cash flow category; not closing debt, project expenditure or product revenue.

RMB 19,384,730.95

Finance-lease deposit cash recovered FY2018 / 2018 / FY2018 A share/CAS, consolidated. FY2018 other financing cash flow category; not closing debt, project expenditure or product revenue.

RMB 15,000,000

Finance-lease cash payments FY2018 / 2018 / FY2018 A share/CAS, consolidated. FY2018 other financing cash flow category; not closing debt, project expenditure or product revenue.

RMB 101,499,814.41

Baker Tilly China issued an unmodified opinion on the consolidated and parent financial statements under Chinese Accounting Standards, dated 19 March 2019. Two key audit matters were fiber-product revenue recognition and completeness of eliminating transactions within the consolidated group. Revenue was recognized when ownership risks and rewards transferred; audit procedures included samples of contracts and shipping/delivery records, customs confirmation and cutoff testing. Domestic fiber-product sales by consolidated Chinese entities were centralized for external sale, making internal elimination important. A key audit matter is not a separate opinion or an identified qualification. The auditor explicitly excludes the remainder of annual-report information from its financial-statement assurance; this opinion does not independently verify every factory claim, future plan or this English research page.

The issuer reclassified government-grant cash receipts into operating activities regardless of whether grants supported assets or income. This increased the relevant operating receipt presentation by CNY 38,456,711.56 for 2018 and CNY 8,700,000.00 for the 2017 comparison, with corresponding reductions in financing receipts. The reclassification does not create extra cash or customer sales. The presentation change also split research expenditure out of administrative expenses; the 2017 research comparison was CNY 252,717,051.38. Comparisons should use the restated categories instead of interpreting the change as a new operating event.

2018 operating grant-receipt reclassification / 2018 / FY2018 A share/CAS.

RMB 38,456,711.56

2017 operating grant-receipt reclassification / 2017 / FY2017 comparative restated in FY2018 A share/CAS.

RMB 8,700,000

These historical statements use Chinese Accounting Standards and CNY presentation. The company consolidates controlled entities, separately identifies minority interests and eliminates intra-group balances and unrealized internal profits. Thus a parent sale to a manufacturing subsidiary and the subsidiary's external sale cannot simply be added to estimate the group's business. The FY2018 goods-revenue policy requires transfer of significant risks and rewards, loss of continuing control, reliable measurement and probable economic benefits; it does not make ignition, a production budget or a customer's industry application sufficient evidence of sales. The audit treated glass-fiber revenue recognition and internal transaction elimination as key matters, with sampled contracts, dispatch documents and shipment cut-off work. That financial audit does not extend its opinion to every annual-report business narrative. These are the disclosed FY2018 rules, not an assumed IFRS restatement or a claim that all later years use identical recognition rules.