China Jushi FY2020: Cash generation and working capital

Operating cash flow was CNY 2,051,501,993.04, down 25.90%; management attributes the decline to increased cash payments for purchases. Investing cash flow was negative CNY 1,528,404,139.05, compared with negative CNY 4,778,164,196.20 in 2019, as cash spent on fixed-asset construction decreased. Financing cash flow was negative CNY 91,140,347.05, with lower bank borrowings cited by management. These net cash-flow categories do not isolate expenditure on each new production line or establish a complete project funding bridge. At year end, receivables financing was CNY 5,078,958,104.62; management connects its growth to unmatured bills received from customers. Other receivables were CNY 1,112,201,249.93, with relocation compensation identified as the main reason for the increase. Customer advances in contract liabilities were CNY 146,743,943.57, rather than another recognized sales amount. Completed lines transferred from construction in progress into fixed assets; a transfer between asset categories is not cash generation or proof of each line’s full-year utilization. These working-capital and construction mechanisms explain why reported growth, profit and cash need separate analysis. Detailed financial statements and notes still require review.

Net cash from operating activities / 2020 / FY2020 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 2,051,501,993.04

Net cash from investing activities / 2020 / FY2020 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 -1,528,404,139.05

Net cash from financing activities / 2020 / FY2020 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 -91,140,347.05

Receivables financing / 2020 / FY2020 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 5,078,958,104.62

Other receivables / 2020 / FY2020 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 1,112,201,249.93

Contract liabilities / 2020 / FY2020 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 146,743,943.57

Management says the Chengdu 250,000-tonne annual manufacturing base was fully put into operation in 2020 and the relocation was substantially completed. The separately recorded 130,000-tonne and 120,000-tonne components retain their July and September ignition dates; those dates do not supply actual annual output or utilization. Relocation compensation and gains were recognized in stages, and management reports CNY 351,993,600 of asset-disposal income for 2020 in this discussion. That Chengdu-specific management figure is not presented as the group’s entire audited disposal result, recurring fiber margin or cash compensation already received. The increase in other receivables indicates the importance of compensation outstanding, but this passage does not reconcile each compensation claim, gain recognition and cash receipt. The subsequent financial-note review must preserve any differences instead of forcing them to match.

Chengdu relocation disposal gain / 2020 / FY2020 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 351,993,600

At 31 December 2020, consolidated monetary funds were CNY 1,869,596,929.32, including CNY 712,650,673.61 held outside China. The note separately reports CNY 3,521,261.01 subject to mortgage, pledge, freezing or other use restrictions. Overseas location does not by itself mean restricted use, and the two amounts must not be added as separate pools of trapped cash. The note does not allocate the restriction to a particular plant or establish freely distributable parent-company cash. Monetary funds rose from the opening CNY 1,446,167,665.44, but a closing balance is different from the CNY 2,051,501,993.04 of operating cash flow already discussed. Treasury wealth-management products are separately classified as financial assets: their CNY 30,069,063.78 carrying value is not another bank deposit or proof that the expected return in the management table was received. This distinction matters when assessing resources available for expansion.

Monetary funds / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 1,869,596,929.32

Monetary funds held outside China / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 712,650,673.61

Monetary funds subject to use restrictions / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 3,521,261.01

Trade receivables at year end were CNY 1,296,762,105.68 before credit-loss allowances of CNY 169,801,941.36, leaving CNY 1,126,960,164.32 net. The gross amount includes CNY 71,158,848.15 more than five years old; age is not a delivery date or proof of recovery. Individually assessed balances of CNY 105,735,306.90 were fully provided because the issuer expected them to be unrecoverable. The remaining collective pool includes fiber and other receivables and is not a single identified customer. The top five debtors held CNY 151,040,574.87, or 11.64% of gross trade receivables, with CNY 89,170,100.36 of allowances. These are year-end credit exposures, not the annual top-five sales concentration. The debtors are anonymized in the note, so no names, customer contracts or customer-level sales are inferred. A smaller net balance than the opening CNY 1,360,941,142.15 must be read alongside write-offs and allowance changes, rather than treated as entirely cash collection.

Trade receivables before allowance / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 1,296,762,105.68

Trade receivable expected-credit-loss allowance / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 169,801,941.36

Trade receivables after allowance / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 1,126,960,164.32

Fully provided individual trade balances / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 105,735,306.9

Top-five gross trade debtor balances / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 151,040,574.87

Top-five trade debtor concentration / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

11.64%

The trade-receivable allowance moved from CNY 169,008,469.08 at the start of 2020 to CNY 169,801,941.36 at year end. The bridge adds CNY 52,769,376.67 of new provisions, subtracts CNY 2,750,000 of recovery or reversal and CNY 48,835,627.56 of write-offs, and includes a negative CNY 390,276.83 other change. The issuer identifies the CNY 2,750,000 item as a litigation recovery, but does not explain the other-change cause in this note. Actual receivable write-offs also total CNY 48,835,627.56; the three major write-offs listed individually total CNY 48,666,872.10 and are only a subset. Using allowances on write-off is not another same-sized current-year provision, and write-offs are not cash receipts. Keeping these movements separate helps explain why the net receivable balance can fall while collection risk remains. No exchange-rate explanation or anonymous debtor identity is invented.

Trade allowance provisions / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 52,769,376.67

Trade allowance recovery or reversal / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 2,750,000

Actual trade receivable write-offs / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 48,835,627.56

Trade allowance other change / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB -390,276.83

Receivables financing at 31 December 2020 comprised CNY 4,889,241,945.39 of bank-accepted bills, CNY 165,716,159.23 of commercially accepted bills and CNY 24,000,000 of letters of credit, totaling CNY 5,078,958,104.62. The policy explains that frequently transferring these receivables through discounting or endorsement supports a business model of collecting and selling financial assets. Endorsement transfers a bill onward; discounting obtains finance before maturity. Neither label alone establishes cash collection or accounting removal. Among endorsed or discounted bills still unmatured at year end, CNY 1,265,591,780.60 of bank bills had been derecognized, while CNY 1,373,051,346.91 of bank bills and CNY 141,569,355.14 of commercial bills remained recognized. The retained total was CNY 1,514,620,702.05. The note does not split these totals between cash discounting and endorsement, and they must not be added to the closing financing balance as separate assets. This gives operating context to the large bill balance without treating every bank bill as cash or every transfer as a final collection.

Bank bills in receivables financing / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 4,889,241,945.39

Commercial bills in receivables financing / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 165,716,159.23

Letters of credit in receivables financing / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 24,000,000

Unmatured transferred bank bills derecognized / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 1,265,591,780.6

Unmatured transferred bank bills retained / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 1,373,051,346.91

Unmatured transferred commercial bills retained / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 141,569,355.14

Other receivables were CNY 1,120,378,098.27 gross and CNY 1,112,201,249.93 after CNY 8,176,848.34 of credit-loss allowances. Their gross balance includes CNY 955,645,806.96 of relocation compensation and CNY 24,068,575.19 of fees for the use of funds. An anonymized debtor listed as customer 18 owed both types, totaling CNY 979,714,382.15, aged under one year and representing 87.45% of gross other receivables. This is a non-sales collection exposure; the label does not identify a fiber customer, and an accrued receivable is not a received relocation payment or disposal profit. The allowance total reconciles from CNY 7,706,592.29 with CNY 603,942.26 of charges and a negative CNY 133,686.21 other change. The original stage table places the two movements in its second-stage column but the opening and closing totals in the first-stage column, without a printed transfer explaining that presentation. Aggregate amounts are retained; no stage-transition or risk-free conclusion is inferred. The largest-debtor allowance cell is blank, not verified zero. The source gives no named identity for that debtor in this table, and research is not extended into it.

Gross other receivables / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 1,120,378,098.27

Other receivable credit-loss allowance / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 8,176,848.34

Relocation compensation receivable / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 955,645,806.96

Fees receivable for use of funds / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 24,068,575.19

Largest other-receivable debtor balance / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 979,714,382.15

Largest other-receivable debtor concentration / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

87.45%

Closing inventory was CNY 1,596,308,690.56 gross and CNY 1,580,008,674.12 net of CNY 16,300,016.44 of write-down allowances. Net inventory fell from CNY 2,069,971,201.20 at the start of the year. Finished goods made up CNY 863,100,888.50 gross, with CNY 15,809,358.01 of allowances; raw materials were CNY 622,288,366.50 gross, with CNY 490,658.43 of allowances. The allowance bridge adds CNY 10,343,769.74 of new charges to the opening CNY 5,956,246.70. The policy uses month-end weighted-average issue cost and the lower of cost and net realizable value, which for saleable goods considers selling prices less selling costs and related taxes. A lower stock balance therefore does not remove valuation risk or prove an equivalent release of cash. CNY 66,155,293.50 of goods dispatched remained inventory; shipment alone should not be presented as recognized revenue or customer acceptance. Manufacturing working capital includes inputs and unsold output, rather than just annual production volume.

Inventory before allowance / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 1,596,308,690.56

Inventory after allowance / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 1,580,008,674.12

Inventory valuation allowance / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 16,300,016.44

Gross finished goods / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 863,100,888.5

Finished goods allowance / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 15,809,358.01

Inventory allowance charge / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 10,343,769.74

Goods dispatched remaining inventory / 2020 / FY2020 consolidated annual notes; explicit closing balance, allowance movement, bill recognition, trial product or tax subject scope. Original CNY/% units; not sales, cash settlement or project allocation.

RMB 66,155,293.5

The goodwill note carries CNY 472,512,501.24 at both the beginning and end of 2020, with no impairment provision reported. The two largest historical balances are CNY 189,612,641.95 for Tongxiang Leishi powder processing and CNY 176,839,725.90 for Tongxiang Jinshi precious-metal equipment. These are acquisition-related accounting amounts, not current equipment purchases or additional project budgets. The issuer calculated recoverable values using forecast future cash flows, historical financial information, expected sales growth and market prospects, with discount rates from 10.15% to 15.80%. It says the tested raw-material businesses have an indefinite income horizon and reports no clear impairment after its assessment. This describes management’s valuation assumptions and conclusion; it does not independently prove future growth, perpetual mine access or absence of risk. Jinshi was absorbed into Jushi Group in 2019, with its goodwill pushed down into Jushi Group’s individual accounts. That historical accounting step is not a new 2020 acquisition, and the source balances are not added again to consolidated goodwill.

Gross goodwill / 2020 / FY2020 consolidated production asset notes; explicit component/project scope. Closing values, budgets, additions, asset transfers, progress and allowances differ. Original CNY or ten thousand CNY retained; not cash capex or output.

RMB 472,512,501.24

Leishi acquisition goodwill / 2020 / FY2020 consolidated production asset notes; explicit component/project scope. Closing values, budgets, additions, asset transfers, progress and allowances differ. Original CNY or ten thousand CNY retained; not cash capex or output.

RMB 189,612,641.95

Jinshi acquisition goodwill / 2020 / FY2020 consolidated production asset notes; explicit component/project scope. Closing values, budgets, additions, asset transfers, progress and allowances differ. Original CNY or ten thousand CNY retained; not cash capex or output.

RMB 176,839,725.9

The deferred-tax note reports unoffset deferred tax assets of CNY 150,236,452.87 and deferred tax liabilities of CNY 388,454,613.75. The largest disclosed asset component arises from unrealized profits on internal transactions, while the largest liability component relates to depreciation and tax differences. These are timing-related accounting balances; they are not cash refunds, new production assets or two further payments to subtract from operating cash flow. Unrecognized deductible tax losses were CNY 371,414,693.13 and other unrecognized deductible temporary differences were CNY 275,492,629.70. The amounts are tax bases, not the value of an approved tax credit, and the loss-expiry table is relevant to whether benefits can later be used. The income-tax expense note separately reports CNY 396,726,154.34 of current tax and CNY 47,280,753.65 of deferred tax, totalling CNY 444,006,907.99. Tax differences between jurisdictions and entities help explain why the parent statutory rate cannot be applied to all consolidated earnings. Neither these expense amounts nor the deferred balances establish tax cash paid or future renewal of a preferential qualification.

Unoffset deferred tax assets / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 150,236,452.87

Unoffset deferred tax liabilities / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 388,454,613.75

Unrecognized deductible tax losses / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 371,414,693.13

Unrecognized deductible temporary differences / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 275,492,629.7

Current income-tax expense / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 396,726,154.34

Deferred income-tax expense / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 47,280,753.65

Total income-tax expense / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 444,006,907.99

Operating cash receipts classified as subsidies were CNY 235,498,871.81 in 2020. In contrast, the grant note's basic-amount total is CNY 245,232,691.79 and its amount recognized in profit or loss is CNY 185,158,914.03. These are three different measures. Recognized income consists of CNY 172,296,631.63 in other income and CNY 12,862,282.40 in non-operating grant income, including pandemic support. Deferred grant income rose from CNY 130,589,447.52 to CNY 176,703,745.56 after CNY 63,990,000.00 of new grants, CNY 13,650,042.22 recognized in other income and a negative CNY 4,225,659.74 other change. That other change belongs to the US project row, but its cause is not explained here; it is not assumed to be a refund or exchange movement. The deferred table covers support for intelligent manufacturing, Tongxiang, Jiujiang, Chengdu and the US base. Earlier receipts can be released to earnings while current equipment support remains deferred. Tongxiang's disclosed CNY 400 million government support commitment is split 90% for research and other support and 10% for equipment; CNY 80 million was received in 2020, including CNY 8 million for equipment. The commitment is not CNY 400 million of 2020 cash or a full project budget. This support is material to the cost and funding of development, but it does not itself establish production output, orders or independent technological success.

Operating cash receipts classified as subsidies / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 235,498,871.81

Grant-note basic amount total / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 245,232,691.79

Government grants recognized in profit or loss / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 185,158,914.03

Other income / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 172,296,631.63

Non-operating government grant income / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 12,862,282.4

Deferred government grant income / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 176,703,745.56

New deferred government grants / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 63,990,000

Deferred grants recognized in other income / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 13,650,042.22

Other change in deferred government grants / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB -4,225,659.74

Financial expenses were CNY 484,999,467.50, comprising CNY 462,494,847.72 of interest expense, a CNY 58,010,273.12 interest-income offset, CNY 64,988,927.78 of exchange losses and CNY 15,525,965.12 of other costs. Accrual expenses differ from the interest cash-flow categories. Investment income was CNY 184,727,208.53, including CNY 170,924,672.42 from associates and CNY 13,154,046.23 from wealth-management products. The latter is a current-year earnings measure, whereas the management treasury list contains products with earlier origins; the two lists are not forced into a single holding-period calculation. Consolidated asset-disposal gains were CNY 394,339,446.44. This broader amount differs from the rounded Chengdu relocation gain described by management and is not relocation cash received. Trade-receivable credit losses in profit or loss were negative CNY 50,019,376.67: the annual charge of CNY 52,769,376.67 was offset by CNY 2,750,000.00 of recoveries. The allowance table's other movements are not another profit charge. These components help distinguish recurring fiber economics from finance, investments, recoveries and disposals without fabricating a normalized profit or cash bridge.

Financial expenses / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 484,999,467.5

Interest expense / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 462,494,847.72

Exchange loss within financial expenses / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 64,988,927.78

Investment income / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 184,727,208.53

Wealth-management investment income / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 13,154,046.23

Consolidated asset-disposal gains / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 394,339,446.44

Trade-receivable credit-loss profit impact / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB -50,019,376.67

The cash reconciliation starts with consolidated net profit of CNY 2,409,764,398.73, including all group ownership interests, rather than profit attributable only to the parent shareholders. Operating cash flow was CNY 2,051,501,993.04. Working-capital adjustments included a CNY 479,618,757.34 inventory decrease, negative CNY 4,498,778,550.09 for operating receivables and positive CNY 2,208,250,371.57 for operating payables. The receivables adjustment has a broader scope than the change in trade receivables alone and cannot be labelled customer cash collected. Non-cash adjustments include impairments, depreciation and disposals. The depreciation adjustment is CNY 1,252,570,892.71, while the fixed-asset note reports CNY 994,426,577.05; the report does not provide a complete bridge between those scopes. Closing cash and cash equivalents were CNY 1,866,075,668.31. This equals total monetary funds of CNY 1,869,596,929.32 less CNY 3,521,261.01 of restricted funds. Restricted assets totalled CNY 1,049,767,133.44, mostly fixed and intangible assets pledged for borrowing. Their carrying value is not another loan principal or another deduction from available cash. The cash-flow note also reports CNY 49,694,085.91 of financing cash outflows for sale-and-leaseback arrangements and CNY 58,574,268.88 of other investing cash outflows for Chengdu relocation; neither becomes a new factory budget.

Consolidated net profit including minority interests / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 2,409,764,398.73

Inventory decrease in operating cash bridge / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 479,618,757.34

Operating receivable adjustment / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB -4,498,778,550.09

Operating payable adjustment / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 2,208,250,371.57

Closing cash and cash equivalents / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 1,866,075,668.31

Total restricted assets / 2020 / FY2020 consolidated funding/cash notes; explicit reported scope. Closing debt, issuance, cash flows, grant deferral, earnings and asset restrictions differ. Original signed CNY values retained; no inferred project allocation.

RMB 1,049,767,133.44

The issuer's supplementary schedule reports CNY 474,264,294.55 of non-recurring profit effects after its tax and minority adjustments. It includes CNY 394,339,446.44 of asset-disposal gains and CNY 171,508,871.81 of qualifying government grant income, rather than every grant recognized in the income statement. Its stated definition excludes support closely tied to ordinary operations under uniform specified standards. The total is a reported accounting classification, not a measure of cash received, an independently calculated sustainable profit or an earnings forecast. A separate historical sale-and-leaseback note says the arrangement begun in 2015 had completed by 31 December 2020. Production equipment remained in Jushi Group's possession without physical handover throughout the financing arrangement. Completion of that arrangement does not mean a factory was sold and shut or that all leases ended. These disclosures connect unusual earnings and historical financing to the operating business while retaining the source's scope.

Issuer non-recurring profit effect after adjustments / 2020 / FY2020 financial notes: consolidated, parent only or investee scope. Original signed CNY/ten thousand CNY preserved. Balances, full company results, minority allocations, cash and plans differ; no inferred ownership weighted results.

RMB 474,264,294.55

Government grants in issuer non-recurring schedule / 2020 / FY2020 financial notes: consolidated, parent only or investee scope. Original signed CNY/ten thousand CNY preserved. Balances, full company results, minority allocations, cash and plans differ; no inferred ownership weighted results.

RMB 171,508,871.81

A court approved the Lifan restructuring plan on 1 December 2020. The note describes CNY 46,564,756.95 of creditor claims allocated in the plan to CNY 400,000.00 of cash, CNY 17,052,444.44 converted into 1,067,781 listed shares at the plan's CNY 15.97 conversion price, and CNY 29,112,312.51 assigned to trust interests. These plan allocations are not all assets or cash received by year end. At 31 December the issuer says it had received CNY 100,000.00 in cash and 210,751 shares corresponding to CNY 2,661,957.56 of creditor carrying value. For the share conversion actually recorded, the table shows CNY 3,365,693.47 of claim face value and CNY 703,735.91 of prior allowance, with a negative CNY 1,620,847.62 restructuring profit effect. The figures illustrate the recovery form and earnings effect of a specific credit exposure. The plan conversion price is not asserted to be market value or sale proceeds; unreceived cash, shares and trust interests are not called completed recovery. The three disclosed plan allocations sum exactly to the stated CNY 46,564,756.95 claim. An earlier internal English version misread the cash allocation as CNY 4.4 million and incorrectly reported a CNY 4 million mismatch; this version corrects that reading against original page 163. The plan totals reconcile, while recovery actually completed by year end remains a separate question.

Claims covered by the disclosed Lifan plan / Lifan restructuring plan approved1December2020; claim amount describes the plan perimeter, not an outstanding year end balance or completed annual recovery.

RMB 46,564,756.95

Lifan cash received by year end / 2020 / FY2020 financial notes: consolidated, parent only or investee scope. Original signed CNY/ten thousand CNY preserved. Balances, full company results, minority allocations, cash and plans differ; no inferred ownership weighted results.

RMB 100,000

Lifan shares received by year end / 2020 / FY2020 financial notes: consolidated, parent only or investee scope. Original signed CNY/ten thousand CNY preserved. Balances, full company results, minority allocations, cash and plans differ; no inferred ownership weighted results.

210,751 shares

Lifan debt-restructuring profit impact / 2020 / FY2020 financial notes: consolidated, parent only or investee scope. Original signed CNY/ten thousand CNY preserved. Balances, full company results, minority allocations, cash and plans differ; no inferred ownership weighted results.

RMB -1,620,847.62

Cash allocation in the approved Lifan plan / Lifan restructuring plan approved1December2020; planned cash allocation is not cash received or a year end balance. Original400000CNY retained.

RMB 400,000

The issuer describes its revenue principally as sales of glass-fiber yarn and products. It recognizes revenue when the customer obtains control of the goods: the ability to direct their use and receive substantially all their economic benefits. For obligations that do not meet the policy criteria for recognition over time, revenue is recognized at a point in time. The policy considers rights to payment, legal title, physical possession, risks and rewards, and customer acceptance as indicators of control. These are accounting criteria, not evidence that all customers paid immediately or that every shipment used the same contractual delivery term. Revenue is measured using the transaction price allocated to the performance obligation, including the stated constraints on uncertain consideration. The report marks different recognition policies for the same business under different operating models as not applicable. For a reader studying collections, the separate cash-flow statement is therefore essential: recorded sales, customer advances and cash received answer different questions. The policy does not disclose a uniform collection period for all customers.

The consolidated cash-flow statement reports CNY 595,922,467.23 paid for taxes and charges in 2020 and CNY 128,304,838.01 received as tax refunds. These are annual cash categories. Closing taxes payable were separately CNY 560,096,477.02, including income tax of CNY 363,844,381.81 and value-added tax of CNY 152,086,160.71. A closing obligation is not another annual cash payment. The income-tax expense discussed elsewhere concerns current and deferred income tax, whereas the cash-payment line covers multiple taxes and charges. The report does not give a complete income-tax-only cash reconciliation or allocate all refunds to individual factories. Readers should therefore not subtract all tax refunds from income-tax expense and call the result tax paid. Deferred tax assets are recognized only to the extent that future taxable income is considered probable under the stated policy; recognized benefits and unrecognized tax-loss bases do not themselves provide cash to finance a project.

Cash paid for taxes and charges / 2020 / FY2020 consolidated statements and reporting notes, CNY; explicit annual flow or closing balance. Accounting revenue, cash receipts, asset additions, investment transactions and ownership allocations have different scopes.

RMB 595,922,467.23

Cash tax refunds received / 2020 / FY2020 consolidated statements and reporting notes, CNY; explicit annual flow or closing balance. Accounting revenue, cash receipts, asset additions, investment transactions and ownership allocations have different scopes.

RMB 128,304,838.01

Closing taxes payable / 2020 / FY2020 consolidated statements and reporting notes, CNY; explicit annual flow or closing balance. Accounting revenue, cash receipts, asset additions, investment transactions and ownership allocations have different scopes.

RMB 560,096,477.02

Closing income tax payable / 2020 / FY2020 consolidated statements and reporting notes, CNY; explicit annual flow or closing balance. Accounting revenue, cash receipts, asset additions, investment transactions and ownership allocations have different scopes.

RMB 363,844,381.81

Closing value-added tax payable / 2020 / FY2020 consolidated statements and reporting notes, CNY; explicit annual flow or closing balance. Accounting revenue, cash receipts, asset additions, investment transactions and ownership allocations have different scopes.

RMB 152,086,160.71

Consolidated net profit was CNY 2,409,764,398.73 in 2020. Profit attributable to the parent shareholders was CNY 2,416,110,988.92, while the amount allocated to non-controlling shareholders was a loss of CNY 6,346,590.19. The parent-attributable amount therefore exceeds group net profit because the minority allocation is negative; it is not an extra profit stream to add to the total. Consolidated operating-cash reconciliation starts from the full group amount, whereas a shareholder earnings comparison uses the parent-attributable scope. Minority interests in subsidiary tables and their annual allocations must retain their reported ownership and period boundaries, especially when ownership changes during the year. The income statement also separates profit from other comprehensive income, which includes foreign-currency translation. Translation recorded outside profit is not automatically an operating cash loss. These boundaries help an overseas reader connect subsidiary performance to consolidated accounts without combining parent-only statements, subsidiary totals and shareholder allocations.

Net profit allocated to non-controlling shareholders / 2020 / FY2020 consolidated statements and reporting notes, CNY; explicit annual flow or closing balance. Accounting revenue, cash receipts, asset additions, investment transactions and ownership allocations have different scopes.

RMB -6,346,590.19

In addition to the product costs described in the revenue tables, the income notes report CNY 101,655,950.45 of taxes and surcharges, CNY 134,206,334.92 of selling expenses and CNY 556,893,149.13 of administrative expenses in 2020. These are functional expense categories, not three further factory-investment budgets. Selling expenses rose from CNY 88,309,356.52 in 2019; its salary and lease rows increased while the transport row declined. The table does not explain a complete causal bridge for those changes. A selling-expense transport line also cannot stand for all group logistics costs or be directly substituted for annual purchases from a related transport provider: the procurement and expense tables use different classifications and counterparties. Administrative costs include staff, depreciation, rent and service costs; the separately disclosed research expenditure retains its own function. Expense accruals and the cash-flow line covering payments for selling, administration and research differ in coverage and timing. Routine meeting, travel and activity subcategories are condensed, while their underlying source remains available. No unnamed plant shutdown, labour shortage or procurement saving is inferred from a small expense line alone.

Taxes and surcharges / 2020 / FY2020 consolidated statements and reporting notes, CNY; explicit annual flow or closing balance. Accounting revenue, cash receipts, asset additions, investment transactions and ownership allocations have different scopes.

RMB 101,655,950.45

Selling expenses / 2020 / FY2020 consolidated statements and reporting notes, CNY; explicit annual flow or closing balance. Accounting revenue, cash receipts, asset additions, investment transactions and ownership allocations have different scopes.

RMB 134,206,334.92

Administrative expenses / 2020 / FY2020 consolidated statements and reporting notes, CNY; explicit annual flow or closing balance. Accounting revenue, cash receipts, asset additions, investment transactions and ownership allocations have different scopes.

RMB 556,893,149.13

The financial statements use Chinese Accounting Standards for Business Enterprises and present the group in renminbi, identified here as CNY. The accounting year runs from 1 January to 31 December; the board approved these statements for issue on 18 March 2021. The issuer prepares them on a going-concern basis and states that it identified no circumstances casting significant doubt on that assumption over the following twelve months. This records the issuer’s assessment, not a guarantee of future commercial outcomes. Consolidation is based on control and includes the parent and controlled subsidiaries, with internal transactions, balances and unrealized internal profits eliminated under the stated policy. Non-controlling interests retain their reported shares of equity, profit and comprehensive income. A partial disposal that leaves control intact therefore differs from selling the whole operation, while associates contribute through the separate equity-accounting scope. Parent-only accounts remain statements of the legal entity and are not added to consolidated totals. The report’s currency policies and individual functional currencies also explain why translated balances, profit and cash exchange effects need separate interpretation.

Tianzhi International’s report, dated 18 March 2021, gives an unmodified opinion on the FY2020 consolidated and parent financial statements prepared under Chinese Accounting Standards for Business Enterprises. Its two key audit matters were recognition of glass fiber and related-product revenue when customers obtain control, and elimination of transactions within the consolidated group. For revenue, the auditor describes contract and delivery-document testing, customs confirmations for exports and checks of shipment timing. For elimination, domestic fiber sales of consolidated Chinese companies were coordinated through the issuer, producing frequent and material internal transactions; the auditor describes reconciliation and review of unrealized internal profit. This explains why subsidiary sales cannot simply be added to the issuer’s sales and why a shipment date, recognized revenue and customer cash receipt can differ. Key audit matters are areas important to the overall audit, not separate qualified opinions. The auditor explicitly says its financial-statement opinion does not provide assurance on the other annual-report information. Neither the financial audit nor the separately reported control audit is independent approval of SinoFilings’s English selection, entity matching or translations.