China Jushi FY2019: Markets, customers and suppliers

The product table reports glass fiber and related-products revenue of CNY 9,938,580,527.84 and cost of CNY 6,276,629,947.74, with a 36.85% gross margin, down 10.20 percentage points. Other main-business products contributed CNY 400,606,711.26 of revenue and CNY 393,300,018.08 of cost, with a 1.82% margin. Management principally attributes the fiber margin decline to reclassifying some selling expenses into cost of sales under its stated new revenue-standard treatment; volume growth supported sales. The full decline therefore cannot simply be described as deterioration in factory efficiency, and this passage provides no quantified bridge from the published margin to a fully comparable adjusted margin. Domestic main-business revenue was CNY 5,959,236,524.56, up 9.19%, while foreign revenue was CNY 4,379,950,714.54, down 1.59%. Their reported margins were 32.98% and 38.90%. Domestic sales accounted for 57.64% of main-business revenue. Product and geographic totals are two overlapping views of the same main business, not additional sales to add together; main-business revenue is also narrower than consolidated revenue. Geography does not allocate revenue to individual factories. The report says production and sales grew but supplies no numerical annual tonnage in this management table.

Fiber revenue / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

RMB 9,938,580,527.84

Fiber cost / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

RMB 6,276,629,947.74

Other main product revenue / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

RMB 400,606,711.26

Other main product cost / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

RMB 393,300,018.08

Domestic main business revenue / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

RMB 5,959,236,524.56

Domestic main business cost / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

RMB 3,993,773,199.87

Foreign main business revenue / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

RMB 4,379,950,714.54

Foreign main business cost / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

RMB 2,676,156,765.95

Fiber gross margin / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

36.85%

Other main product gross margin / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

1.82%

Domestic gross margin / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

32.98%

Foreign gross margin / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

38.9%

The revenue policy principally concerns glass-fiber yarn and products. Revenue follows fulfillment of the performance obligation when the customer obtains control: the ability to direct use and receive substantially all economic benefits. The policy distinguishes qualifying obligations satisfied over time from other obligations recognized at a point in time. Rights to payment, legal title, physical possession, transferred risks and rewards and customer acceptance are indicators, rather than a universal delivery term shared by every order. Transaction price allocation also accounts for uncertain consideration and financing components under the stated policy. Amounts received or receivable from customers before the company transfers the goods are obligations, presented as contract liabilities. These rules explain why a sale is not the same event as cash collection or an advance receipt. The report does not supply a single contractual collection period for every customer; actual working-capital balances and cash receipts must be considered separately.

The top five customers accounted for CNY 1,319,969,400, or 12.58% of annual sales. Related-party sales within those five were CNY 806,507,100, or 7.69% of annual sales. The top five suppliers accounted for CNY 1,613,151,600, or 18.21% of annual purchases; their related-party subset was CNY 379,604,200, or 4.28% of annual purchases. The related amounts are already included in the top-five totals and must not be added again. Sales and purchase percentages use different denominators, and these rankings are not the complete related-party transaction note. Anonymous ranking positions do not establish legal identities or the same customer or supplier across years. The table helps readers assess concentration and related exposure without inventing deliveries, settlement terms or follow-on counterparty research.

Top five customer sales / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

RMB 1,319,969,400

Related sales within top five / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

RMB 806,507,100

Top-five supplier purchases / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

RMB 1,613,151,600

Related-party purchases within five largest suppliers / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

RMB 379,604,200

Top five customer share / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

12.58%

Related top five customer share / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

7.69%

Top-five share of annual purchases / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

18.21%

Related top five supplier share / 2019 / FY2019 issuer management disclosure; original currency, unit, product/region/company denominator and balance/flow scope retained. Not project allocation or a complete audited note reconciliation.

4.28%

The consolidated related-party note connects shareholder-linked businesses to the manufacturing supply chain. It records 2019 transportation services of CNY 379,604,189.41 from Zhenshi Group Zhejiang Yushi International Logistics and CNY 85,975,179.51 from Shanghai Tianshi International Freight Forwarding. Tongxiang Huarui Automatic Control Technology Equipment supplied equipment worth CNY 66,898,487.01 and technology/repair services of CNY 245,957.38. The equipment supplier and Yushi logistics business are classified in the report as shareholder subsidiaries. These disclosures identify important operating relationships, but do not establish that the prices were above or below market or identify which project received each purchase. They are annual transactions, not year-end amounts owed; the related-party payable table must be read separately.

Yushi annual transport services / 2019 / FY2019 A share/CAS note. Explicit parent or consolidated scope; annual transactions, carrying balances, allowances, investment income and cash receipts are distinct; no inferred counterparty identity.

RMB 379,604,189.41

Tianshi annual transport services / 2019 / FY2019 A share/CAS note. Explicit parent or consolidated scope; annual transactions, carrying balances, allowances, investment income and cash receipts are distinct; no inferred counterparty identity.

RMB 85,975,179.51

Huarui annual equipment purchases / 2019 / FY2019 A share/CAS note. Explicit parent or consolidated scope; annual transactions, carrying balances, allowances, investment income and cash receipts are distinct; no inferred counterparty identity.

RMB 66,898,487.01

Huarui annual technical and repair services / 2019 / FY2019 A share/CAS note. Explicit parent or consolidated scope; annual transactions, carrying balances, allowances, investment income and cash receipts are distinct; no inferred counterparty identity.

RMB 245,957.38

The related-party sales note reports 2019 finished-goods transactions of CNY 673,854,960.75 with Zhejiang Hengshi Fiberglass Fabrics and CNY 132,652,151.51 with HENGSHI EGYPT FIBERGLASS FABRICS S.A.E. Raw-material transactions with the same parties were separately CNY 22,317,584.96 and CNY 6,642,380.94. This separation matters: adding raw materials and utility services to finished goods would change the product-sales measure. These figures document commercial relationships disclosed by Jushi; they are not the partners' total purchases, their downstream sales or outstanding receivables. The report does not provide a transaction-level product specification or evidence that every sale was ultimately used for one particular end market.

Zhejiang Hengshi finished-goods sales / 2019 / FY2019 A share/CAS note. Explicit parent or consolidated scope; annual transactions, carrying balances, allowances, investment income and cash receipts are distinct; no inferred counterparty identity.

RMB 673,854,960.75

Zhejiang Hengshi raw-material sales / 2019 / FY2019 A share/CAS note. Explicit parent or consolidated scope; annual transactions, carrying balances, allowances, investment income and cash receipts are distinct; no inferred counterparty identity.

RMB 22,317,584.96

Hengshi Egypt finished-goods sales / 2019 / FY2019 A share/CAS note. Explicit parent or consolidated scope; annual transactions, carrying balances, allowances, investment income and cash receipts are distinct; no inferred counterparty identity.

RMB 132,652,151.51

Hengshi Egypt raw-material sales / 2019 / FY2019 A share/CAS note. Explicit parent or consolidated scope; annual transactions, carrying balances, allowances, investment income and cash receipts are distinct; no inferred counterparty identity.

RMB 6,642,380.94