China Jushi FY2018: Projects and construction progress

Construction in progress closed at CNY 4,156,849,872.78. The important-project movement schedule has CNY 3,882,329,691.20 remaining in construction, while other projects account for CNY 274,520,181.58 in the balance table. The important-project schedule reports annual additions of CNY 5,365,193,476.78, transfers to fixed assets of CNY 2,540,906,959.40 and other reductions of CNY 65,623,472.34. These are construction-account movements for the listed projects, not the company's total gross cash capital expenditure. The project columns separately report budget utilization and engineering progress; neither is capacity utilization or customer acceptance. Own funds and borrowing are listed as funding sources, without a project-specific split of actual loan receipts and cash payments.

All construction-in-progress carrying value / 2018 / FY2018 A share/CAS.

RMB 4,156,849,872.78

Important-project closing construction value / 2018 / FY2018 A share/CAS.

RMB 3,882,329,691.2

Other construction projects carrying value / 2018 / FY2018 A share/CAS.

RMB 274,520,181.58

Important-project annual additions / 2018 / FY2018 A share/CAS.

RMB 5,365,193,476.78

Important-project transfers to PPE / 2018 / FY2018 A share/CAS.

RMB 2,540,906,959.4

Important-project other reductions / 2018 / FY2018 A share/CAS.

RMB 65,623,472.34

The US project is labeled an 80,000-tonne-per-year alkali-free glass-fiber line in the financial schedule. Its budget was CNY 2,052,632,700.00, annual construction additions CNY 1,620,098,190.87 and closing construction value CNY 1,923,272,307.23. The schedule reports 93.70% cumulative investment against budget and 95.00% engineering progress, with CNY 2,837,161.23 of current-year capitalized interest at 2.97%. Management's operating narrative says ignition was imminent, not completed. The engineering percentage, construction value and capitalized interest do not establish commercial output or customer deliveries in2018. The historical80,000-tonne label is retained separately from later reports'96,000-tonne wording, for which no direct capacity bridge has been established. The project is linked to its existing historical identity without rewriting later-year capacities.

US80kt project budget / 2018 / FY2018 A share/CAS. Historical80kt schedule scope; progress not utilization.

RMB 2,052,632,700

US project annual construction additions / 2018 / FY2018 A share/CAS. Historical80kt schedule scope; progress not utilization.

RMB 1,620,098,190.87

US project closing construction value / 2018 / FY2018 A share/CAS. Historical80kt schedule scope; progress not utilization.

RMB 1,923,272,307.23

US cumulative investment/budget / 2018 / FY2018 A share/CAS. Historical80kt schedule scope; progress not utilization.

93.7 percent

US engineering progress / 2018 / FY2018 A share/CAS. Historical80kt schedule scope; progress not utilization.

95 percent

US annual capitalized interest / 2018 / FY2018 A share/CAS. Historical80kt schedule scope; progress not utilization.

RMB 2,837,161.23

US current-year capitalization rate / 2018 / FY2018 A share/CAS. Historical80kt schedule scope; progress not utilization.

2.97 percent

The financial note separates phaseI and phaseII of the programme labeled300,000tonnes per year of intelligent glass-fiber manufacturing. PhaseI had a CNY 1,725,293,800.00 budget, CNY 1,047,374,959.40 of annual additions, CNY 1,005,576,703.90 transferred to fixed assets and CNY 109,534,579.75 remaining in construction. Its reported engineering progress was75.00%. PhaseII had a separate CNY 1,195,591,400.00 budget and CNY 407,338,901.68 of additions and closing construction, with35.00% progress. The operating narrative identifies the phaseI roving component as150,000tonnes per year and says it was ignited and put into production. That line milestone differs from the broader phaseI project-account progress. Repetition of300,000tonnes in the programme titles does not prove600,000tonnes of independent additions or justify assigning each phase's whole budget to the individual150,000-tonne line.

Intelligent programme phaseI budget / 2018 / FY2018 A share/CAS. Programme phase account; not whole budget of individual150kt roving line.

RMB 1,725,293,800

PhaseI annual additions / 2018 / FY2018 A share/CAS. Programme phase account; not whole budget of individual150kt roving line.

RMB 1,047,374,959.4

PhaseI transfers to PPE / 2018 / FY2018 A share/CAS. Programme phase account; not whole budget of individual150kt roving line.

RMB 1,005,576,703.9

PhaseI closing construction value / 2018 / FY2018 A share/CAS. Programme phase account; not whole budget of individual150kt roving line.

RMB 109,534,579.75

Intelligent programme phaseII budget / 2018 / FY2018 A share/CAS. Programme phase account; not whole budget of individual150kt roving line.

RMB 1,195,591,400

PhaseII annual additions / 2018 / FY2018 A share/CAS. Programme phase account; not whole budget of individual150kt roving line.

RMB 407,338,901.68

PhaseII closing construction value / 2018 / FY2018 A share/CAS. Programme phase account; not whole budget of individual150kt roving line.

RMB 407,338,901.68

PhaseI engineering progress / 2018 / FY2018 A share/CAS.

75 percent

PhaseII engineering progress / 2018 / FY2018 A share/CAS.

35 percent

The construction schedule combines60,000tonnes per year of electronic yarn with200million meters per year of electronic fabric in one project title. Its budget was CNY 2,186,133,600.00 and both annual additions and closing construction value were CNY 1,264,850,182.93. The schedule reports57.86% investment against budget and55.00% engineering progress. Management separately reports ignition and production of the60,000-tonne fine-yarn phaseI line. Yarn is the upstream material for fabric; the line milestone does not demonstrate that every weaving facility in the combined programme was complete or that200million meters were actually produced. The combined-account budget and progress are retained without assigning them entirely to the yarn component or merging tonnes and meters into one capacity measure.

Combined electronic-yarn/fabric project budget / 2018 / FY2018 A share/CAS. Combined60kt yarn and200million meter fabric account; not yarn only account.

RMB 2,186,133,600

Combined project annual additions / 2018 / FY2018 A share/CAS. Combined60kt yarn and200million meter fabric account; not yarn only account.

RMB 1,264,850,182.93

Combined project closing construction / 2018 / FY2018 A share/CAS. Combined60kt yarn and200million meter fabric account; not yarn only account.

RMB 1,264,850,182.93

Combined project investment/budget / 2018 / FY2018 A share/CAS. Combined60kt yarn and200million meter fabric account; not yarn only account.

57.86 percent

Combined project engineering progress / 2018 / FY2018 A share/CAS. Combined60kt yarn and200million meter fabric account; not yarn only account.

55 percent

The Jiujiang120,000-tonne-per-year alkali-free line had a CNY 1,012,953,900.00 budget, CNY 729,777,613.75 of annual construction additions, CNY 953,647,657.04 transferred to fixed assets and CNY 14,540,162.45 remaining in construction. The schedule reports95.00% engineering progress and CNY 2,357,472.23 of annual capitalized interest. A different30,000-tonne upgrade project transferred CNY 139,903,706.36 to fixed assets and reclassified CNY 59,669,675.17 into the120,000-tonne project. This is an explicit account reclassification, not an additional cash payment or another new line. The receiving schedule does not separately bridge that reclassification against all its additions. The operating narrative's350,000-tonne regional layout is broader than this new line and should not replace its capacity. Existing project identities are retained.

Jiujiang120kt line budget / 2018 / FY2018 A share/CAS. Named120kt line, except explicitly identified separate30kt upgrade movements; not extra output.

RMB 1,012,953,900

Jiujiang120kt construction additions / 2018 / FY2018 A share/CAS. Named120kt line, except explicitly identified separate30kt upgrade movements; not extra output.

RMB 729,777,613.75

Jiujiang120kt transfers to PPE / 2018 / FY2018 A share/CAS. Named120kt line, except explicitly identified separate30kt upgrade movements; not extra output.

RMB 953,647,657.04

Jiujiang120kt closing construction / 2018 / FY2018 A share/CAS. Named120kt line, except explicitly identified separate30kt upgrade movements; not extra output.

RMB 14,540,162.45

Jiujiang120kt annual capitalized interest / 2018 / FY2018 A share/CAS. Named120kt line, except explicitly identified separate30kt upgrade movements; not extra output.

RMB 2,357,472.23

Separate Jiujiang30kt upgrade transfers to PPE / 2018 / FY2018 A share/CAS. Named120kt line, except explicitly identified separate30kt upgrade movements; not extra output.

RMB 139,903,706.36

Separate30kt upgrade reclassified into120kt account / 2018 / FY2018 A share/CAS. Named120kt line, except explicitly identified separate30kt upgrade movements; not extra output.

RMB 59,669,675.17

Jiujiang120kt engineering progress / 2018 / FY2018 A share/CAS.

95 percent

A first-phase furnace cold repair transferred CNY 124,277,373.40 to fixed assets and reported100.00% engineering progress. The600,000-tonne-per-year pyrophyllite powder expansion transferred CNY 194,112,938.94 and likewise reported100.00% progress. Powder is a glass-making raw-material input, not600,000tonnes of additional fiber capacity. The100,000-tonne unsaturated-polyester resin retrofit had an opening construction balance of CNY 86,790,535.52, transferred CNY 80,836,738.35 to fixed assets and reduced construction cost by CNY 5,953,797.17 from sales of trial-run products. Its annual-additions cell is blank and reported engineering progress50.00%, even though the closing construction balance is explicitly zero. The transfer is not an annual addition; trial sales credited against construction are not automatically main-business revenue. A zero account balance does not establish completion of every engineering scope.

Furnace cold-repair transfer to PPE / 2018 / FY2018 A share/CAS.

RMB 124,277,373.4

Pyrophyllite powder expansion transfer to PPE / 2018 / FY2018 A share/CAS.

RMB 194,112,938.94

Resin retrofit opening construction / 2018 / FY2018 A share/CAS.

RMB 86,790,535.52

Resin retrofit transfer to PPE / 2018 / FY2018 A share/CAS.

RMB 80,836,738.35

Trial-product sales reducing resin construction cost / 2018 / FY2018 A share/CAS.

RMB 5,953,797.17

Resin retrofit explicit closing construction balance / 2018 / FY2018 A share/CAS.

RMB 0

Resin retrofit engineering progress / 2018 / FY2018 A share/CAS.

50 percent

The Egyptian supporting-engineering project had a CNY 261,380,000.00 budget, CNY 109,560,294.82 of annual additions, CNY 42,551,841.41 transferred to fixed assets and CNY 162,793,557.16 remaining in construction. Its engineering progress was80.00%. The operating narrative says supporting projects were successively completed and commissioned and the200,000-tonne base was fully built. The year-end support account and broader operating narrative are retained together, rather than translating base completion into zero remaining construction or an extra200,000-tonne line. The filing does not supply a detailed facility-by-facility bridge between these scopes or annual realized output of the base.

Egypt support-project budget / 2018 / FY2018 A share/CAS.

RMB 261,380,000

Egypt support-project additions / 2018 / FY2018 A share/CAS.

RMB 109,560,294.82

Egypt support-project transfers to PPE / 2018 / FY2018 A share/CAS.

RMB 42,551,841.41

Egypt support-project closing construction / 2018 / FY2018 A share/CAS.

RMB 162,793,557.16

Egypt support-project engineering progress / 2018 / FY2018 A share/CAS.

80 percent

On 28 April 2018, the Chengdu subsidiary signed a cooperation agreement with the Qingbaijiang district government for a whole-plant relocation and a new advanced glass-fiber manufacturing base within the district. The disclosed programme envisaged phased construction, two furnace drawing lines operating before the end of 2020 and total investment of CNY 3,000,000,000. This is the historical agreement's plan, not FY2018 expenditure or evidence that the deadline was achieved. The operating narrative's 250,000-tonne project label does not allocate equal capacity to each line or establish net incremental group output.

Chengdu relocation planned investment / 2018 / FY2018 A share/CAS. Planned agreement budget; original 30 hundred million CNY, not annual spending.

RMB 3,000,000,000