China Jushi FY2020: Debt and related-party balances

The company reports CNY 1,489,000,000 of bank wealth-management placements from its own funds during 2020, with CNY 30,000,000 not yet matured at year end and no overdue unrecovered amount in the summary table. The detailed list totals CNY 1,491,400,000 of principal. Its first eight entries were placed in December 2018 and total CNY 2,400,000; including those old products explains why the detailed principal list is larger than the new-placement total. The detailed list contains CNY 13,930,629.15 of actual returns and separately CNY 69,063.78 of expected future returns. Expected returns on unmatured products are not added to actual returns or labeled cash already collected. The three unmatured CNY 10,000,000 placements have 2021 maturity dates. A list of placements over time is not an additional closing asset balance or the same as construction expenditure. The table describes these products as principal-protected, which is the disclosed product classification rather than an independent guarantee of risk-free investment. This passage does not supply a complete reconciliation to recognized investment income, trading-asset fair value or investing cash receipts; those accounting-note scopes remain separate.

New bank wealth management placements / 2020 / FY2020 issuer disclosure; explicit ownership, guarantee, treasury, workforce or emissions entry scope. Original units, balances/flows, mixed period lists and proposal timing retained; not project allocation.

RMB 1,489,000,000

Unmatured treasury principal / 2020 / FY2020 issuer disclosure; explicit ownership, guarantee, treasury, workforce or emissions entry scope. Original units, balances/flows, mixed period lists and proposal timing retained; not project allocation.

RMB 30,000,000

Detailed treasury principal list / FY2020 issuer disclosure; explicit ownership, guarantee, treasury, workforce or emissions entry scope. Original units, balances/flows, mixed period lists and proposal timing retained; not project allocation.

RMB 1,491,400,000

Actual returns in treasury list / FY2020 issuer disclosure; explicit ownership, guarantee, treasury, workforce or emissions entry scope. Original units, balances/flows, mixed period lists and proposal timing retained; not project allocation.

RMB 13,930,629.15

The important construction table reports CNY 13,691,657.04 of borrowing costs capitalized during 2020, allocated there to the Chengdu 250,000-tonne programme, at a disclosed capitalization rate of 3.7277%. Capitalization places qualifying borrowing costs into the asset cost rather than immediately presenting the same amount as an expense. The financial supplement reports the same annual capitalized amount and rate. This is not the group’s total interest payment, and the capitalization rate should not be used as the interest rate of every loan or as a financing commitment for later years. The construction table’s own-funds/borrowing label identifies the stated funding mix but does not disclose a complete source-by-source cash allocation.

Capitalized borrowing costs / 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 13,691,657.04

Borrowing cost capitalization rate / 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.

3.7277%

At 31 December 2020, consolidated short-term loans were CNY 4,201,470,880.21, down from CNY 6,610,547,641.36 at the beginning of the year. Non-current long-term loans were CNY 4,430,331,242.69, up from CNY 3,148,654,457.99. The current portion of non-current liabilities was separately CNY 613,160,403.69: CNY 205,809,784.24 of long-term loans, CNY 406,964,111.26 of bonds and CNY 386,508.19 of leases. Non-current bonds were another CNY 1,833,290,277.81. The 2018 green note and medium-term note shown in the current portion have changed balance-sheet maturity classification; that does not mean their principal was repaid in 2020. These categories help a reader separate near-term refinancing from longer funding, but they do not identify the cash funding of each factory. The loan note discloses historical rate ranges by security category, rather than a single borrowing rate applicable to the whole group. Guaranteed, secured and unsecured borrowing must also be distinguished from the issuer guarantees already described elsewhere.

Short-term loans / 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 4,201,470,880.21

Non-current long-term loans / 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 4,430,331,242.69

Current portion of non-current 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 613,160,403.69

Current portion of long-term loans / 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 205,809,784.24

Current portion of bonds / 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 406,964,111.26

Non-current bonds / 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 1,833,290,277.81

The report retains CNY 1,514,620,702.05 of liabilities for bills transferred without derecognition at year end. Derecognition means removing the receivable from the accounts; transferring or discounting a bill does not always satisfy that accounting test. The receivable note divides this exact total into bank and commercial acceptance bills, while the other-current-liability note labels the matching amount as bank acceptance bills. Both labels are retained as a source inconsistency rather than creating two additional balances. Separately, the cash-flow note reports CNY 1,418,662,736.13 of inflows from bill discounting for financing purposes and CNY 1,100,000,000.00 of outflows described as financed amounts. Those are annual cash categories, not the closing retained-bill balance or a complete reconciliation of every transferred bill. Ordinary bills payable were CNY 431,147,842.13, including bank bills and letters of credit; the note reports no matured unpaid bills within that scope. This narrow statement is not a conclusion that all group obligations are current or risk-free.

Liabilities for transferred bills not derecognized / 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 1,514,620,702.05

Financing-purpose bill discount cash inflows / 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 1,418,662,736.13

Cash outflows described as financed amounts / 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 1,100,000,000

Bills payable / 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 431,147,842.13

The short-term debt table lists nine 2020 issues, each with CNY 500 million face value, with disclosed tenors from 88 to 270 days. Their combined face value is CNY 4.5 billion, calculated from those nine rows. The table also includes two 2019 issues: its CNY 5.5 billion issue-amount column therefore must not be reported as new 2020 issuance. The actual current-year issuance column is CNY 4,498,086,555.56, and current-year repayments are CNY 3,500,000,000.00. Closing short-term notes of CNY 2,014,293,333.34 are an accounting carrying amount, comprising the four rows that remain at year end; they are not the total face value ever issued or total borrowing cash raised. The table separately reports interest accrual and discount or premium amortization. Accrued interest on issues repaid during the year cannot simply be added to the closing principal, and the note is not used to invent a full cash-interest settlement bridge. Repeated issuance and repayment illustrate the turnover of short funding rather than nine additional permanent sources of factory capacity.

Short-note current-year issuance column / 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 4,498,086,555.56

Short-note current-year repayments / 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 3,500,000,000

Closing short-term note carrying amount / 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 2,014,293,333.34

Consolidated trade payables closed at CNY 1,743,411,276.79. Engineering payables were the largest disclosed component, CNY 882,005,715.45, followed by raw-material payables of CNY 697,410,199.90 and equipment payables of CNY 93,053,630.88. Those balances show obligations to suppliers and builders supporting manufacturing; they are neither this year's purchases nor additional amounts to add to construction assets. Five important balances aged more than a year totalled CNY 65,590,390.53. Their counterparties were anonymous, and the issuer says contractual payment dates had not yet been reached. Age alone is therefore not evidence of default, nor does the disclosure identify the supplier across years. Customer contract liabilities were separately CNY 146,743,943.57 current and CNY 10,133,832.34 non-current. These represent obligations associated with customer contracts rather than completed sales or bank loans. Routine other payables, compensation roll-forwards and staff profit-sharing administration are condensed because the tables do not demonstrate an additional material manufacturing constraint or shareholder transaction; the source remains available.

Trade payables / 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 1,743,411,276.79

Engineering payables / 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 882,005,715.45

Raw-material payables / 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 697,410,199.9

Equipment payables / 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 93,053,630.88

Important payables aged more than one year / 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 65,590,390.53

Non-current contract 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 10,133,832.34

Related-party trade receivables were CNY 20,253,663.85 gross at year end, with CNY 1,841,902.57 of allowances. The largest disclosed balances include Zhenshi Yongchang and Zhongfu Lianzhong. Related trade payables were CNY 26,971,703.43, led by CNY 19,884,807.04 of equipment amounts payable to Huarui. Related customer contract liabilities or advances were CNY 14,534,541.89. These are group balances from the related-party note, not the parent-only internal loans described separately. Allowances show that a related relationship does not by itself establish full collectibility. A blank closing cell is not converted into an exact zero field or used to declare all annual sales paid; balances and yearly transactions do not provide a complete cash-settlement bridge. The issuer also reports related lease income of CNY 3,403,056.83 and related lease expense of CNY 8,204,847.78. Those modest property and equipment arrangements are condensed as supporting context rather than new production capacity, while the complete source tables are retained.

Related-party trade receivables gross / 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 20,253,663.85

Related-party trade receivable allowances / 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 1,841,902.57

Related-party trade payables / 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 26,971,703.43

Related-party contract liabilities or advances / 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 14,534,541.89

The financial-risk note says 62.78% of debt was due in less than one year at 31 December 2020, while 38.99% of interest-bearing borrowings carried fixed rates. These percentages have different denominators and cannot be combined into a fixed-rate short-debt estimate. The issuer's liability-to-asset ratio was 50.06%. Its statement that credit customers are dispersed and monitored is a management assessment, not evidence of no losses or no related-party concentration. The foreign-currency monetary-funds table totals CNY 882,846,341.47 in translated value; foreign-currency funds are different from funds physically held overseas and from all available cash. The Egyptian and US manufacturing entities use the US dollar as functional currency. Currency risk arises from sales, purchases and funding in other currencies as well as translating overseas net assets into the consolidated reporting currency. The note describes forward exchange arrangements and foreign-currency borrowing as mitigation policies, without proving all exposures are hedged. The foreign financial-statement translation row reports a negative CNY 305,231,938.48 pre-tax movement in other comprehensive income. That differs from transaction exchange losses in financial expenses and is not another operating cash payment to subtract.

Debt due in less than one year share / 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.

62.78%

Fixed-rate share of interest-bearing borrowings / 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.

38.99%

Liability to asset ratio / 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.

50.06%

Translated foreign-currency monetary funds / 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 882,846,341.47

Pre-tax foreign financial-statement translation movement / 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 -305,231,938.48

Cash paid to acquire or construct fixed assets, intangible assets and other long-term assets was CNY 1,531,676,750.95 in 2020, compared with CNY 5,109,198,554.61 in 2019. The 2020 amount is an annual group cash outflow across those asset categories; it is not a budget for one factory, the value transferred from construction into fixed assets, or proof of additional capacity brought into service. The investing statement also records CNY 1,489,000,000.00 paid for investments and CNY 1,461,400,000.00 received from recovering investments. Those two categories should not be relabelled factory construction without an explicit source allocation. The overall net investing cash outflow was CNY 1,528,404,139.05, after investment income receipts, asset disposals and other investing cash items. This explains why net investing cash and long-lived-asset payments differ. The year-on-year payment figures describe cash timing, while construction progress and the operating stage of individual projects require their own disclosures.

Cash paid for fixed, intangible and other long-term assets / 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 1,531,676,750.95

Cash paid for investments / 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 1,489,000,000

Cash received from recovering investments / 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 1,461,400,000

Net investing cash flow / 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 -1,528,404,139.05

The financing statement reports CNY 12,458,635,146.24 of borrowing cash received and CNY 12,635,284,056.02 of cash used to repay debt in 2020. These gross annual flows describe funding turnover; neither is the closing borrowing balance or a direct measure of new factory spending. Cash paid for dividends, profits or interest was a combined CNY 1,127,267,422.53. That combined line cannot be described as dividends alone, and the proposed distribution for FY2020 is not assumed to have been paid within the year. After investment inflows and other financing items, net financing cash flow was negative CNY 91,140,347.05. Operating cash flow of CNY 2,051,501,993.04, net investing cash flow of negative CNY 1,528,404,139.05, net financing cash flow and a negative CNY 11,407,059.88 exchange-rate effect together reconcile to the CNY 420,550,447.06 increase in cash and cash equivalents. The exchange-rate cash effect is distinct from the exchange loss in finance expenses and the translation movement in equity. This reconciliation explains the change in available cash without presenting a manufactured measure of free cash flow.

Cash received from borrowings / 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 12,458,635,146.24

Cash paid to repay debt / 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 12,635,284,056.02

Cash paid for dividends, profits or interest / 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 1,127,267,422.53

Net financing cash flow / 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 -91,140,347.05

Exchange-rate effect on cash and equivalents / 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 -11,407,059.88

Net increase in cash and equivalents / 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 420,550,447.06

The important-matters table reports CNY 10,289,650,000 of subsidiary guarantee activity during 2020 and CNY 5,601,970,000 of outstanding guarantees at year end. The occurrence amount is a period flow; the closing amount is a balance, so they are not added. The company says all guarantees were for companies within its consolidated perimeter, with no guarantees outside subsidiaries in this table. The reported guarantee-to-net-assets ratio is 32.13%. Outstanding guarantees for obligors with a liabilities-to-assets ratio above 70% were CNY 208,310,000, a subset of the closing total rather than an additional obligation. Guarantees support operating subsidiaries’ access to funding and can expose a guarantor if the obligor fails to pay. They do not independently prove that the guarantee amount was drawn, paid out in cash or defaulted, nor should it simply be added to consolidated borrowing balances when the underlying subsidiary debt is already included. The table’s absence of an overdue liability explanation does not establish that every possible claim is risk-free. The financial-note headings for important commitments and contingencies are marked not applicable. That narrow presentation does not cancel the separately disclosed subsidiary guarantees or prove that all contractual obligations are risk-free.

Subsidiary guarantee activity / 2020 / FY2020 issuer disclosure; explicit ownership, guarantee, treasury, workforce or emissions entry scope. Original units, balances/flows, mixed period lists and proposal timing retained; not project allocation.

RMB 10,289,650,000

Outstanding subsidiary guarantees / 2020 / FY2020 issuer disclosure; explicit ownership, guarantee, treasury, workforce or emissions entry scope. Original units, balances/flows, mixed period lists and proposal timing retained; not project allocation.

RMB 5,601,970,000

Guarantees for obligors above 70% leverage / 2020 / FY2020 issuer disclosure; explicit ownership, guarantee, treasury, workforce or emissions entry scope. Original units, balances/flows, mixed period lists and proposal timing retained; not project allocation.

RMB 208,310,000

Reported guarantees to net assets ratio / 2020 / FY2020 issuer disclosure; explicit ownership, guarantee, treasury, workforce or emissions entry scope. Original units, balances/flows, mixed period lists and proposal timing retained; not project allocation.

32.13%