China Jushi FY2018: Debt and related-party balances

Operating activities generated CNY 3,862,006,789.83 of net cash, while investing activities used a net CNY 5,517,097,259.84. Financing activities provided net cash of CNY 1,163,001,540.42. Management attributes stronger operating cash to customer cash receipts, the larger investing outflow to payments for fixed-asset investment, and financing cash to increased borrowing and fewer repayments of maturing loans. These are net cash-flow categories: investing outflow is not gross plant capital expenditure, and financing inflow is not the closing debt balance. They provide funding context for simultaneous projects without allocating spending or cash generation to an individual base.

Net operating cash flow / 2018 / FY2018 A share/CAS. Management discussion, stated category and denominator retained; not factory output or customer level allocation.

RMB 3,862,006,789.83

Net investing cash flow / 2018 / FY2018 A share/CAS. Management discussion, stated category and denominator retained; not factory output or customer level allocation.

RMB -5,517,097,259.84

Net financing cash flow / 2018 / FY2018 A share/CAS. Management discussion, stated category and denominator retained; not factory output or customer level allocation.

RMB 1,163,001,540.42

The 2012 corporate bond had a stated principal balance of CNY 1,200,000,000, a 5.56% annual coupon and maturity on 17 October 2019. The report says the interest due in October 2018 was paid on time and the original proceeds had been used to repay bank loans. This distinguishes interest paid during 2018 from principal scheduled after year-end. At the reporting date, bank credit lines were CNY 27,912,000,000 and registered bond issuance capacity CNY 6,200,000,000; the issuer reports used credit of CNY 12,661,000,000. Registered bond capacity is not cash already raised, and the combined headline capacity is not a guarantee that lenders will fund a new plant. The report attributes lower current and quick ratios to more non-current liabilities falling due within a year. Its no-default statement concerns the reported period, not future repayment assurance.

Stated2012 corporate-bond principal balance / 2018 / FY2018 A share/CAS. Contract principal, not effective interest amortized carrying amount; maturity2019 10 17.

RMB 1,200,000,000

Bank credit facilities / 2018 / FY2018 A share/CAS. Disclosed facility/registration/used credit scopes separate; not unrestricted cash or confirmed future refinancing.

RMB 27,912,000,000

Registered bond issuance capacity / 2018 / FY2018 A share/CAS. Disclosed facility/registration/used credit scopes separate; not unrestricted cash or confirmed future refinancing.

RMB 6,200,000,000

Issuer-reported used credit / 2018 / FY2018 A share/CAS. Disclosed facility/registration/used credit scopes separate; not unrestricted cash or confirmed future refinancing.

RMB 12,661,000,000

Short-term borrowings closed at CNY 4,931,434,616.43. Separately, non-current liabilities due within one year totaled CNY 3,134,129,181.32, including long-term loans of CNY 1,557,137,360.00, bonds of CNY 1,497,673,494.60 and long-term payables of CNY 79,318,326.72. Long-term borrowing remaining non-current was CNY 2,653,316,858.19. Non-current bonds closed at CNY 399,350,000.03: the note explicitly says the 2012 bond and 2014 medium-term note were reclassified into current maturities. Their disappearance from the non-current bond rows is therefore not evidence that principal was repaid. Two new three-year instruments dated 7 May and 13 December 2018 each had CNY 200,000,000.00 face issuance, distinct from their amortized carrying values. The cash-flow statement leaves its bond-issuance receipt row blank; it does not supply a one-to-one bridge to these contracts. Borrowing receipts must not all be renamed bank-loan receipts. Guarantees disclosed elsewhere are not mechanically added to these balances as new debt.

Short-term borrowings / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 4,931,434,616.43

Non-current liabilities due within one year / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 3,134,129,181.32

Current maturities of long loans / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 1,557,137,360

Current maturities of bonds / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 1,497,673,494.6

Current maturities of long payables / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 79,318,326.72

Non-current long loans / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 2,653,316,858.19

Non-current bonds carrying value / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 399,350,000.03

Face issuance of each of the two named2018 notes / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only. Each named note separately; not combined400m cash receipt.

RMB 200,000,000

Cash paid for property, plant, intangible and other long-term assets was CNY 6,054,195,562.43. This gross asset-purchase cash is distinct from net investing cash and from the construction-in-progress carrying values of individual projects. Borrowing receipts were CNY 8,659,286,458.02 and debt repayments were CNY 6,850,229,988.75. Cash received from minority investors in subsidiaries was CNY 217,219,183.90, not a new cash share issue by the listed parent. The combined dividends, profit distributions and interest payment row of CNY 1,177,266,052.20 is not dividend-only cash. Exchange-rate effects on cash were CNY 142,663,494.03; they are separate from operating, investing and financing net flows. Taken together, those flows reconcile to the reported decline in cash. Annual investment and recovery of investments include treasury flows and do not identify unique spending on a named factory.

Gross long-term-asset purchase cash / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 6,054,195,562.43

Borrowing cash received / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 8,659,286,458.02

Debt cash repaid / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 6,850,229,988.75

Subsidiary minority-investor cash / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 217,219,183.9

Combined distribution and interest cash paid / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 1,177,266,052.2

Exchange-rate effect on cash / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 142,663,494.03

Foreign-currency monetary funds translated into CNY were CNY 529,541,981.99, whereas the monetary-funds note reports CNY 352,737,858.28 located abroad. These amounts answer different questions and should not be reconciled as the same pool. Foreign-currency trade receivables were CNY 895,367,342.86; foreign-currency short and long borrowings were CNY 296,434,616.43 and CNY 608,079,520.00 respectively, all translated amounts rather than original foreign-currency units. A forward-exchange fair-value liability of CNY 30,232,980.03 was also disclosed. Management describes currency matching and forward transactions, but these balances do not establish full hedge coverage or cash settlement of the fair-value liability. Historical currency exposure must be distinguished from export-market revenue and the geography of factories.

CNY-translated foreign-currency monetary funds / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 529,541,981.99

CNY-translated foreign-currency trade receivables / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 895,367,342.86

CNY-translated foreign-currency short borrowings / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 296,434,616.43

CNY-translated foreign-currency long borrowings / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 608,079,520

Forward-exchange fair-value liability / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only.

RMB 30,232,980.03

The parent-only cash statement reports negative operating cash of CNY 78,884,248.48 and closing cash of CNY 345,106,874.85. The consolidated statement reports positive operating cash of CNY 3,862,006,789.83 and closing cash of CNY 1,488,076,068.09. They are different reporting entities, not contradictory versions of one operating result. The auditor describes centralized external sales for the domestic consolidated entities and the importance of eliminating internal transactions. Parent-only cash cannot describe all factories' liquidity, while consolidated cash does not establish that every subsidiary's funds are immediately transferable to the parent. This distinction is relevant when comparing shareholder distributions with factory investment funding.

Parent-only net operating cash / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only. Parent only; not consolidated group cash.

RMB -78,884,248.48

Parent-only closing cash / 2018 / FY2018 A share/CAS, consolidated unless explicitly parent only. Parent only; not consolidated group cash.

RMB 345,106,874.85

Asset-related deferred government grants opened at CNY 55,506,733.18. Additions of CNY 38,456,711.56 and releases of CNY 4,201,428.69 brought the closing balance to CNY 89,762,016.05. The schedule includes the intelligent manufacturing programme, green manufacturing, waste recycling and high-strength/high-modulus glass fiber. A grant balance is not customer revenue, additional production capacity or evidence that the supported product has reached commercial scale. The grant programme's capacity label should not be added again to individual line capacities.

Opening deferred asset grants / 2018 / FY2018 A share/CAS.

RMB 55,506,733.18

Asset-grant additions / 2018 / FY2018 A share/CAS.

RMB 38,456,711.56

Asset grants released to profit / 2018 / FY2018 A share/CAS.

RMB 4,201,428.69

Closing deferred asset grants / 2018 / FY2018 A share/CAS.

RMB 89,762,016.05

The JS304 US project received a new asset-related grant of CNY 29,906,711.56, which remained deferred at year end without a current-year release in that row. The issuer links the support to a 2016 memorandum with Richland County and South Carolina economic authorities for site preparation, infrastructure and land improvements. This identifies support for the US development; it does not establish operating sales, full utilization or an independently inspected grant agreement.

US JS304 asset-grant addition / 2018 / FY2018 A share/CAS.

RMB 29,906,711.56

The government-grant summary reports CNY 70,331,026.46, split between CNY 31,874,314.90 recognized in profit and CNY 38,456,711.56 deferred. Profit recognition includes CNY 20,536,417.90 in other income and CNY 11,337,897.00 in non-operating income. Separately, the cash-flow note reports CNY 66,129,597.77 of government-grant receipts, while the non-recurring schedule includes a narrower CNY 27,672,886.21 subsidy category that excludes qualifying normal-business subsidies. These schedules do not provide a complete bridge from summary to cash. They should not be forced into one cash or non-recurring figure.

Government-grant summary amount / 2018 / FY2018 A share/CAS.

RMB 70,331,026.46

Grants recognized in profit / 2018 / FY2018 A share/CAS.

RMB 31,874,314.9

Government-grant cash receipts / 2018 / FY2018 A share/CAS.

RMB 66,129,597.77

Non-recurring subsidy category / 2018 / FY2018 A share/CAS.

RMB 27,672,886.21

Finance expense totaled CNY 341,228,910.80. Its components were interest expense of CNY 452,139,507.06, interest income shown as negative CNY 36,238,604.90, exchange loss shown as negative CNY 83,559,043.03 and other costs of CNY 8,887,051.67. The negative exchange-loss entry represents a net exchange gain within this expense schedule. It is distinct from the cash-flow statement's translation effect on cash, and total finance expense is not cash interest paid. Borrowing costs capitalized in construction are addressed separately in project accounts.

Interest expense / 2018 / FY2018 A share/CAS.

RMB 452,139,507.06

Signed interest-income component / 2018 / FY2018 A share/CAS.

RMB -36,238,604.9

Signed exchange-loss component / 2018 / FY2018 A share/CAS.

RMB -83,559,043.03

Other finance expense / 2018 / FY2018 A share/CAS.

RMB 8,887,051.67

Total finance expense / 2018 / FY2018 A share/CAS.

RMB 341,228,910.8

Remaining minimum finance-lease payments at year end were CNY 135,313,549.61: CNY 85,003,203.35 within one year and CNY 50,310,346.26 in the following year. Unrecognized finance costs were CNY 6,308,548.24. These are future contractual payments, not current-year cash use. The disclosed sale-and-leaseback contract covered production equipment valued at CNY 373,626,596.64 over five years. The equipment remained in Jushi Group's possession without physical delivery to the lessor; the transaction should not be interpreted as a plant closure or removal of production assets. The disclosure also identifies a joint guarantee. The historical contract description alone does not date a new FY2018 cash inflow.

Remaining minimum finance-lease payments / 2018 / FY2018 A share/CAS.

RMB 135,313,549.61

Minimum finance-lease payments within one year / 2018 / FY2018 A share/CAS.

RMB 85,003,203.35

Minimum finance-lease payments in following year / 2018 / FY2018 A share/CAS.

RMB 50,310,346.26

Unrecognized finance costs / 2018 / FY2018 A share/CAS.

RMB 6,308,548.24

The restricted-assets note identifies CNY 2,096,531,915.16 of closing carrying values: CNY 15,625,544.82 of monetary funds as deposits, CNY 2,056,773,485.07 of fixed assets associated with secured borrowing and finance leases, and CNY 24,132,885.27 of intangible assets pledged for borrowing. This identifies assets already tied to financing, rather than new debt, cash expenditure or an estimate of sale proceeds. The aggregate disclosure does not allocate the restrictions to each factory or show that operations were halted. Its deposit amount is the same restricted balance explained in the cash reconciliation, not an additional deduction from available cash.

Restricted asset carrying-value total / 2018 / FY2018 year end disclosed in FY2018 A share/CAS.

RMB 2,096,531,915.16

Restricted monetary funds as deposits / 2018 / FY2018 year end disclosed in FY2018 A share/CAS.

RMB 15,625,544.82

PPE associated with borrowing security and finance leases / 2018 / FY2018 year end disclosed in FY2018 A share/CAS.

RMB 2,056,773,485.07

Intangibles pledged for borrowing / 2018 / FY2018 year end disclosed in FY2018 A share/CAS.

RMB 24,132,885.27

The issuer states that 78.12% of debt matured in less than one year at the 2018 close, compared with 63.90% at the 2017 close. This is its disclosed debt measure, not a newly calculated percentage of bank loans alone; the text does not give a separate denominator bridge. The adjacent maturity schedule covers financial liabilities including trade bills, trade payables, interest, other payables and derivative liabilities as well as borrowings. Its liability categories should not all be renamed bank debt, nor treated as guarantees to be added again. The company describes balancing continued access and flexibility through borrowing, finance leases and other interest-bearing finance. It also reports approximately 54.13% of interest-bearing borrowing at fixed rates, compared with 53.52% a year earlier. This helps distinguish refinancing timing from exposure to rate changes; it does not quantify future refinancing terms or establish that funding is guaranteed.

Issuer-reported debt maturing in less than one year / 2018 / FY2018 year end disclosed in FY2018 A share/CAS. Issuer debt wording; denominator not independently reconstructed.

78.12%

Prior issuer-reported debt maturing in less than one year / 2017 / FY2017 year end disclosed in FY2018 A share/CAS. Issuer comparative debt wording; not a bank only ratio.

63.9%

The other-comprehensive-income note records a CNY 161,055,599.91 foreign-currency financial-statement translation movement: CNY 148,193,253.57 attributable to the parent and CNY 12,862,346.34 to minority interests. A negative CNY 2,937,265.22 equity-method item brings total other comprehensive income to CNY 158,118,334.69, of which CNY 145,255,988.35 is attributable to the parent. This describes translation of overseas financial statements into the group's presentation currency; it is distinct from an exchange gain in the finance-expense schedule and the cash-flow statement's exchange effect on cash. The translation movement is not another operating cash receipt, customer sale or profit-statement exchange gain. These measures belong to different accounting scopes and should not be added to estimate cash available for new plants.

Foreign-statement translation movement before displayed allocations / 2018 / FY2018 A share/CAS.

RMB 161,055,599.91

Foreign-statement translation attributable to parent / 2018 / FY2018 A share/CAS.

RMB 148,193,253.57

Foreign-statement translation attributable to minority interests / 2018 / FY2018 A share/CAS.

RMB 12,862,346.34

Signed equity-method other comprehensive income / 2018 / FY2018 A share/CAS.

RMB -2,937,265.22

Total current other comprehensive income / 2018 / FY2018 A share/CAS.

RMB 158,118,334.69

Other comprehensive income attributable to parent / 2018 / FY2018 A share/CAS.

RMB 145,255,988.35

Continuous glass-fiber furnace operation makes fuel availability an operating constraint. The issuer identifies exposure to electricity, natural gas, ores and chemical inputs, and describes gas-supply stations, storage tanks and vehicle-based backup supply. It says emergency gas can reach a production base within two to twelve hours; this is its contingency description, not an independently tested delivery guarantee or evidence that no interruption occurred. Central purchasing, competitive tenders and long-term contracts are described as cost controls, without proving fixed input prices or quantifying their savings. The historical risk discussion also links overseas business to trade barriers affecting Chinese exports and Egyptian supply routes. It reports that Turkey ended its investigation of Egyptian glass-fiber products in September 2018 with a zero dumping rate for the investigated enterprises, while US-China tariff developments remained uncertain. These are statements in this FY2018 filing, not a current tariff determination or clearance for every shipment. Management expected the approaching US factory ignition to reduce trade exposure, but the annual narrative does not establish US production during 2018 or quantify the resulting earnings protection. Receivable, inventory, interest-rate and currency risks should be read alongside the separate cash and debt explanations.