China Jushi FY2019: Projects and construction progress

The US 96,000-tonne-per-year alkali-free glass-fiber furnace-drawing project began trial production after ignition on 18 May 2019. At year-end, unsold trial-run products had an expected selling value of CNY 80,684,947.83, recorded in other current assets. This is an estimate attached to unsold output, not realized sales, an order book or cash received. Together with CNY 228,506,299.68 of uncredited VAT and prepaid taxes, it forms CNY 309,191,247.51 of other current assets. The construction note records a CNY 2.0526327 billion budget, CNY 598,135,469.71 added during the year, CNY 2,515,936,237.17 transferred into fixed assets and CNY 5,471,539.77 left in construction at year-end. Its expenditure-to-budget ratio is 104.83%, while reported engineering progress is 98.00%; those percentages answer different questions. Capitalized interest was CNY 33,321,769.35 during the year and CNY 36,158,930.58 cumulatively, at a stated 3.9397% capitalization rate. The transfer is an accounting movement when assets become ready for intended use; it does not establish full annual output or that all trial products were sold. The 96,000-tonne label is retained from this note without automatically merging it with differently sized historical proposals.

Expected selling value of unsold US trial products / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 80,684,947.83

Uncredited VAT and prepaid taxes / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 228,506,299.68

Other current assets / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 309,191,247.51

US96kt closing construction balance / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 5,471,539.77

US96kt opening construction balance / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 1,923,272,307.23

US96kt annual construction addition / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 598,135,469.71

US96kt annual transfer to fixed assets / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 2,515,936,237.17

US96kt annual capitalized interest / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 33,321,769.35

US96kt cumulative capitalized interest / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 36,158,930.58

US96kt stated budget / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 2,052,632,700

US96kt expenditure to budget / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

104.83%

US96kt engineering progress / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

98%

US96kt capitalization rate / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

3.9397%

The construction note describes a line programme for 60,000 tonnes of electronic yarn and 200 million metres of electronic cloth annually. These are different stages and units, not quantities to add into one capacity figure. The stated budget is CNY 2.1861336 billion. Opening construction of CNY 1,264,850,182.93 plus annual additions of CNY 310,927,813.42, less CNY 1,507,716,653.50 transferred to fixed assets, leaves CNY 68,061,342.85 at year-end. The reported expenditure-to-budget ratio is 88.14% and engineering progress 95.00%. These figures document investment and progress rather than realized annual yarn output, cloth shipments or electronic-material customer qualification. The programme is funded from own funds and borrowing according to the table; the note does not allocate the group cash-flow capital expenditure line or every borrowing to this specific programme.

Electronic programme opening construction / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 1,264,850,182.93

Electronic programme annual addition / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 310,927,813.42

Electronic programme annual transfer / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 1,507,716,653.5

Electronic programme closing construction / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 68,061,342.85

Electronic programme stated budget / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 2,186,133,600

Electronic programme expenditure to budget / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

88.14%

Electronic programme engineering progress / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

95%

The Chengdu subsidiary’s 250,000-tonne-per-year furnace-drawing construction programme is labelled phase I in the financial note. Its stated budget is CNY 3.1058 billion. Opening construction of CNY 34,921,529.11 and annual additions of CNY 704,049,304.75 produce a closing CNY 738,970,833.86 balance. The table reports 65.00% engineering progress but 23.79% expenditure to budget, with own funds as the stated financing source. No transfer to fixed assets is shown in this row; the blank is retained rather than converted into a new operating result. Separately, the fixed-assets-under-disposal account includes CNY 43,463,856.38 labelled Chengdu line103 demolition and relocation, plus CNY 625,657.98 for other assets, totaling CNY 44,089,514.36. An asset-disposal account is not a completion certificate for the relocation or evidence of new-site output. The report also lists CNY 26,633,789.36 of Jushi Group Beite factory buildings without completed title certificates, described by the issuer as within the normal certificate-processing period. That is a specific title-document issue, not evidence that all plant operating permits are missing.

Chengdu phaseI stated budget / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 3,105,800,000

Chengdu phaseI opening construction / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 34,921,529.11

Chengdu phaseI annual construction addition / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 704,049,304.75

Chengdu phaseI closing construction / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 738,970,833.86

Chengdu phaseI engineering progress / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

65%

Chengdu phaseI expenditure to budget / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

23.79%

Chengdu103 assets under disposal / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 43,463,856.38

Other assets under disposal / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 625,657.98

Total assets under disposal / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 44,089,514.36

Beite factory carrying value pending title certificate / 2019 / FY2019 A share/CAS note; exact reported scope. Budget CNY10,000 where stated. Construction balances and transfers are not cash or output. Grant receipt, income and deferral differ.

RMB 26,633,789.36

Management reports that the US project entered production in 2019, while the financial note identifies a 96,000-tonne annual tank-furnace line and dates ignition and trial production to 18 May 2019. The 96,000-tonne label is retained as reported for 2019. These passages do not provide a bridge between different historical capacity labels, so they cannot establish that every earlier proposal and subsequent construction stage shared one unchanged design capacity. Similarly, management describes the Tongxiang 60,000-tonne electronic-yarn and 200-million-metre fabric project as running at full capacity, whereas the financial construction table reports 95% engineering progress and residual construction costs. Operating-stage commentary and completion of every project component are different measures; neither should erase the other. The Chengdu construction note explicitly labels phase I of the 250,000-tonne project, while the historical record describes the wider relocation programme. Phase-I progress does not establish completion of the whole programme. These boundaries preserve the useful development history without guessing project identities, phase capacities or actual annual production.

The construction schedule separately lists a 150,000-tonne annual intelligent-manufacturing expansion and phase II of a project labelled 300,000 tonnes per year. The expansion added CNY 542,378,866.07 of construction costs during 2019, taking its carrying balance from CNY 169,811.32 to CNY 542,548,677.39; reported engineering progress was 10%, while cumulative investment represented 36.88% of budget. Phase II added CNY 53,336,013.65, moving from CNY 407,338,901.68 to CNY 460,674,915.33; engineering progress was 30% and the budget-investment ratio 38.53%. Both rows identify own funds and borrowing as funding sources, without quantifying each source. These are separate unfinished construction entries, rather than proof that the stated annual capacities were producing saleable output. The 300,000-tonne wording is the disclosed project label; the table does not allocate that programme capacity separately between phases.

Expansion opening construction / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

RMB 169,811.32

Expansion construction additions / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

RMB 542,378,866.07

Expansion closing construction / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

RMB 542,548,677.39

Phase II opening construction / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

RMB 407,338,901.68

Phase II construction additions / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

RMB 53,336,013.65

Phase II closing construction / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

RMB 460,674,915.33

Expansion engineering progress / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

10%

Expansion cumulative budget investment ratio / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

36.88%

Phase II engineering progress / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

30%

Phase II cumulative budget investment ratio / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

38.53%

The new headquarters building and the Egypt production-base support works are separate construction rows from the glass-fiber line projects. Headquarters costs rose from CNY 26,415.09 by CNY 100,037,522.68 to CNY 100,063,937.77 at year-end; engineering progress was 35% and the cumulative budget-investment ratio 14.84%. The Egypt support project started with CNY 162,793,557.16, added CNY 9,352,375.80 and transferred CNY 131,333,000.73 into fixed assets, leaving CNY 40,812,932.23; engineering progress was 95%, compared with an 82% budget-investment ratio. Both rows list own funds and borrowing. These figures describe capital tied up in corporate facilities and production-site support rather than separately quantified additional glass-fiber capacity. A transfer into fixed assets is an accounting-stage movement, not the same as construction cash paid or proof that every supporting component was complete.

Headquarters opening construction / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

RMB 26,415.09

Headquarters construction additions / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

RMB 100,037,522.68

Headquarters closing construction / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

RMB 100,063,937.77

Egypt support opening construction / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

RMB 162,793,557.16

Egypt support construction additions / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

RMB 9,352,375.8

Egypt support transfer to fixed assets / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

RMB 131,333,000.73

Egypt support closing construction / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

RMB 40,812,932.23

Headquarters engineering progress / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

35%

Headquarters cumulative budget-investment ratio / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

14.84%

Egypt support engineering progress / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

95%

Egypt support cumulative budget-investment ratio / 2019 / FY2019 A share/CAS. Explicit consolidated asset or named project note scope; transition balance, construction cost additions, transfers and engineering progress distinct. No inferred phase capacity or historical identity.

82%

The construction schedule identifies phase I of Jushi Group's intelligent-manufacturing programme labelled 300,000 tonnes per year. Opening construction of CNY 109,534,579.75 and annual additions of CNY 22,729,006.88 were transferred to fixed assets at CNY 132,263,586.63. The movement row shows 100% engineering progress and cumulative investment equal to 93.19% of budget. This documents an accounting transfer and reported engineering status, rather than annual saleable output or a separately established 300,000-tonne capacity for phase I alone. The programme label does not allocate capacity between phases. The separate Jiujiang 120,000-tonne furnace-drawing construction entry shows CNY 14,540,162.45 at the beginning of the year and a blank closing column. It is absent from the important-project movement rows on the following page. The blank alone does not establish a zero value, commissioning date, transfer amount or achieved production. These entries complete the construction context alongside the separately described unfinished expansion, phase II, Chengdu, electronic materials, US and support works.

Phase-I opening construction / 2019 / FY2019 A share/CAS. Original note scope; annual flow, adjusted opening balance and closing balance kept distinct. Blank cells not zero.

RMB 109,534,579.75

Phase-I annual construction additions / 2019 / FY2019 A share/CAS. Original note scope; annual flow, adjusted opening balance and closing balance kept distinct. Blank cells not zero.

RMB 22,729,006.88

Phase-I annual fixed-asset transfer / 2019 / FY2019 A share/CAS. Original note scope; annual flow, adjusted opening balance and closing balance kept distinct. Blank cells not zero.

RMB 132,263,586.63

Jiujiang120kt construction opening balance / 2019 / FY2019 A share/CAS. Original note scope; annual flow, adjusted opening balance and closing balance kept distinct. Blank cells not zero.

RMB 14,540,162.45