China Jushi FY2018: Subsidiaries and invested companies

The long-term-investment note identifies Lianyungang Zhongfu Lianzhong under associates, with CNY 1,053,632,580.70 of closing carrying value and CNY 69,761,232.13 of equity-method investment profit. Dividends or profit distributions declared were CNY 39,101,515.00, a separate movement rather than proof of cash received in this table. The operating table identifies a32.04% interest and wind-turbine-blade production and sales. Its full-company revenue and profit must not be inserted as wholly owned glass-fiber sales or output. The same investment note separately retains an impaired CNY 493,103.30 Shenzhen Zhujiang investment with an equal closing impairment allowance. The total long-term-investment table includes that impaired row, so its printed total is not automatically an unimpaired net cash-realizable value. No counterparty investigation is extended.

Zhongfu associate investment carrying value / 2018 / FY2018 A share/CAS.

RMB 1,053,632,580.7

Zhongfu equity-method investment profit / 2018 / FY2018 A share/CAS.

RMB 69,761,232.13

Zhongfu declared dividend/profit distribution / 2018 / FY2018 A share/CAS.

RMB 39,101,515

Shenzhen Zhujiang investment and equal allowance / 2018 / FY2018 A share/CAS.

RMB 493,103.3

The issuer established Jushi India Fiberglass in the first half of 2018 in Talegaon Industrial Area Phase II, Pune, Maharashtra. Registered capital was USD 100,000,000 and the subscription was wholly owned. Registration and subscription do not establish paid capital, completed construction or commercial output. The subsidiary tables distinguish the US manufacturing company, Jushi USA Inc., with a 70% direct holding, from a wholly owned US fiberglass sales/import-export company. A trading presence is therefore not another factory. The Egyptian and US manufacturing entities use USD as their functional currency, which matters when comparing local operations with consolidated CNY accounts.

India registered capital / 2018 / FY2018 A share/CAS. Registered capital, not paid capital or cash funding.

100,000,000 USD

Zhongfu's associate disclosure identifies CNY 39,101,515.00 of dividends received during the year. This adds receipt evidence to the investment movement table, whose declared-dividend entry alone did not establish payment. The associate's full-company revenue and profit are not wholly consolidated glass-fiber revenue. Likewise, equity-method income incorporates ownership and accounting adjustments; it should not be equated mechanically with a share of an unadjusted investee profit figure.

Dividend received from Zhongfu associate / 2018 / FY2018 A share/CAS.

RMB 39,101,515

The parent's trade receivables were CNY 2,278,429,041.14 net, including a gross balance of CNY 1,629,085,291.83 due from Jushi Group. They cannot be treated as independent external-customer exposure. Other receivables presented in the parent accounts totaled CNY 1,070,696,094.80, comprising CNY 600,000,000.00 of dividends receivable from Jushi Group and CNY 470,696,094.80 of other net receivables. The latter included CNY 442,000,000.00 of funding principal advanced to named operating subsidiaries. The parent also recorded investment additions of CNY 325,722,075.00 in US manufacturing and CNY 28,660,827.48 in India. These are investment-book movements, not automatically equivalent to cash contributions or the Indian registered capital. The parent's CNY 600,000,000.00 cost-method investment income and dividend receivable do not create an extra external group profit or prove that the dividend was paid.

Parent net trade receivables / 2018 / FY2018 A share/CAS.

RMB 2,278,429,041.14

Parent gross receivable from Jushi Group / 2018 / FY2018 A share/CAS.

RMB 1,629,085,291.83

Parent presented other receivables including dividends / 2018 / FY2018 A share/CAS.

RMB 1,070,696,094.8

Parent dividend receivable from Jushi Group / 2018 / FY2018 A share/CAS.

RMB 600,000,000

Parent other net receivables excluding dividends / 2018 / FY2018 A share/CAS.

RMB 470,696,094.8

Parent funding principal to subsidiaries / 2018 / FY2018 A share/CAS.

RMB 442,000,000

Parent US subsidiary investment-book addition / 2018 / FY2018 A share/CAS.

RMB 325,722,075

Parent India subsidiary investment-book addition / 2018 / FY2018 A share/CAS.

RMB 28,660,827.48