China Jushi FY2019: Products and glass-fiber technology

E7 was upgraded with higher tensile modulus and lower batch-material cost, according to management. E8 high-modulus glass successfully reached tank-furnace production. The company reported development of nine new products spanning high-performance wind-blade yarn, high-pressure pipe yarn, polypropylene chopped strands, SMC yarn, ultra-high-voltage insulator yarn, thermoplastic reinforcement and 1080 thin fabric. These are disclosed development and manufacturing milestones; the report does not allocate sales among the nine products.

The report describes glass fiber as an input to composite products used in building materials, transport and wind-energy equipment. Its electronic yarn can be woven into glass fabric used in copper-clad laminate, a core substrate for printed circuit boards (PCBs). Yarn, fabric, laminate and a finished PCB are different stages; a disclosed electronic-yarn line is not a circuit-board factory. The report associates vehicle applications with lightweight reinforced components and wind applications with blades, including demand for higher-modulus fiber as blades grow larger. These are application explanations and management market context, not evidence that Jushi supplies every named downstream sector, a particular automaker or a disclosed number of turbines. Industry forecasts and broad penetration estimates are not converted into Jushi orders, realised output or current market forecasts.

R&D investment was RMB 283,805,966.64, all expensed, or 2.70% of revenue, with 1,182 research personnel. The research programme covered glass formulations, sizing chemicals, fiber products, composite applications, process equipment, cleaner production and intelligent manufacturing. This breadth helps explain why new mineral inputs, furnace design and downstream applications appear together in the development account. Management's technical-leadership claims are not treated as independent performance benchmarks.

The existing E7 upgrade and E8 tank-furnace manufacturing milestones sit within research on glass formulations, sizing chemicals, composite applications, process equipment, cleaner production and intelligent manufacturing. The report describes large furnaces, bushings, oxy-fuel combustion and process automation as technical strengths. Its statements of world leadership and complete technology-export capability are management claims, not independently tested performance or an identified technology sale. The research table records all expenditure as expensed rather than capitalised; the product-development list does not allocate sales to each new formulation. Future descriptions of functional fiber industrialisation and wider applications remain expectations, rather than evidence that all such products were already commercially manufactured at scale in FY2019.

The fixed-asset policy describes platinum-rhodium alloy bushings used in drawing glass fiber. The precious metals are processed into bushings and require periodic cleaning and reworking to meet the stated fiber-quality requirements. Those activities cause physical metal losses, which the company charges to production cost and deducts from the precious-metal assets. Bushings are therefore included in fixed assets without conventional depreciation, unlike machinery and buildings depreciated over useful lives. The year-end platinum-rhodium carrying amount was CNY 7,616,880,104.32 within CNY 19,552,894,966.32 of fixed assets excluding assets under disposal. It is a production input with capital tied up in it, not a cash reserve or a market-value estimate of recoverable metal. A generic factory depreciation assumption would miss this accounting distinction. The policy also transfers construction to fixed assets when ready for intended use, while qualifying borrowing costs are capitalized under specified conditions. Neither a transfer entry nor capitalized interest alone establishes commercial sales, nameplate output achieved or a new cash payment.

Platinum-rhodium fixed-asset carrying value / 2019 / FY2019 A share/CAS financial statement or note; CNY unless separately stated. Consolidated/parent, annual cash/profit, opening transition adjustment and closing balance remain distinct. Not individual project cash or commercial output.

RMB 7,616,880,104.32

Fixed assets excluding assets under disposal / 2019 / FY2019 A share/CAS financial statement or note; CNY unless separately stated. Consolidated/parent, annual cash/profit, opening transition adjustment and closing balance remain distinct. Not individual project cash or commercial output.

RMB 19,552,894,966.32