China Jushi FY2020: Manufacturing bases

The US alkali-free glass-fiber furnace line described in this note has a 96,000-tonne annual design scale and began trial production after ignition on 18 May 2019. The note says unsold trial-run products were transferred to other current assets at estimated selling prices. At 31 December 2020, their reported estimated selling value was CNY 23,643,999.23, compared with the opening CNY 80,684,947.83. This is a historical closing asset amount, not recognized FY2020 revenue, received cash, production tonnage or a measure of the whole plant’s utilization. Other current assets also included CNY 172,174,886.77 of unoffset VAT and prepaid taxes; that tax balance is separate from trial products. The two entries total CNY 195,818,886.00. Distinguishing ignition, trial output and later sales lets readers follow commercialization without equating a furnace’s technical start with sale of all its products.

US unsold trial products at estimated selling value / 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 23,643,999.23

Unoffset VAT and prepaid taxes / 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 172,174,886.77

Consolidated net property, plant and equipment at 31 December 2020 was CNY 20,814,561,968.89. The balance-sheet fixed-asset summary of CNY 20,910,936,255.17 also includes CNY 96,374,286.28 of assets in clearance, identified in the note with the Chengdu whole-plant relocation. Clearance is an accounting balance, not sale proceeds or recognized disposal profit. Platinum-rhodium alloy accounted for CNY 7,563,367,368.19 within net fixed assets. The policy explains that this metal is made into bushings used to draw glass fiber, with periodic cleaning and processing for product quality. Unlike ordinary buildings and machinery, these bushings are not depreciated: production losses of the alloy enter product cost and reduce the metal asset. This makes the balance relevant to both manufacturing and recoverable material value, rather than another furnace-capacity measure. The fixed-asset note reports CNY 994,426,577.05 of depreciation charges and CNY 3,511,382,242.71 of gross transfers from construction in progress. Transfers bring previously accumulated construction costs into operating assets; they are not the same amount as current-year cash purchases. The precious-metal amount is retained at its reported accounting value, with no market-price valuation invented.

Net property plant and equipment / 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 20,814,561,968.89

Fixed-asset summary including clearance / 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 20,910,936,255.17

Platinum-rhodium alloy fixed assets / 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 7,563,367,368.19

Gross transfers from construction to fixed assets / 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 3,511,382,242.71

Depreciation charge in the fixed-asset note / 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 994,426,577.05

Chengdu relocation asset-clearance balance / 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 96,374,286.28

Construction in progress closed at CNY 1,966,724,950.88 gross and CNY 1,941,439,688.21 net after CNY 25,285,262.67 of impairment allowances. The net amount was below the opening CNY 2,187,731,981.04, but that movement does not mean investment stopped: projects were added and transferred into fixed assets during the year. The important-project movement table covers selected projects, not every item in total construction. Its closing CNY 1,825,772,618.12 therefore differs from the complete net balance. Project additions, transfers and remaining costs give readers a construction-accounting view; they do not disclose actual fiber output, customer acceptance or final cash settlement. The policy allows a project that has reached its intended usable condition to transfer at an estimated cost before final settlement, with later cost adjustment. A blank closing cell in a transferred project is not used to invent a separate zero-valued field or a new production claim.

Gross construction in progress / 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 1,966,724,950.88

Construction impairment allowance / 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 25,285,262.67

Net construction in progress / 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 1,941,439,688.21

The note separately lists a project for 60,000 tonnes per year of electronic yarn and 300 million metres per year of electronic fabric. Its disclosed budget is CNY 2,372,687,100, reported as 237,268.71 units of ten-thousand CNY; closing construction is CNY 858,468,130.17, with engineering progress of 50% and cumulative investment of 46% of budget. Those percentages describe different concepts and must not be replaced by closing construction divided by budget. The table lists own funds as its funding source. A separate 150,000-tonne annual intelligent glass-fiber expansion has a CNY 1,471,166,700 budget, CNY 710,824,879.28 of closing construction and 50% engineering progress, with own funds and borrowing listed. These are planned scales and construction status, not actual 2020 production. The new headquarters also holds CNY 218,885,152.92 in construction and is not fiber capacity. Egypt’s production-base supporting works retain CNY 37,594,455.75 of construction and 96% progress; supporting infrastructure must not be described as an additional fiber line. The report does not provide a reliable project-level cash-payment bridge for these balances.

Disclosed project budget / 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 2,372,687,100

Disclosed project budget / 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 1,471,166,700

Project closing construction balance / 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 858,468,130.17

Project closing construction balance / 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 710,824,879.28

Project closing construction balance / 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 218,885,152.92

Project closing construction balance / 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 37,594,455.75

Reported project engineering progress / 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.

50%

Reported project engineering progress / 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.

50%

Reported project engineering progress / 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.

96%

The Chengdu 250,000-tonne annual furnace-line programme reports 100% engineering progress, a budget of CNY 3,104,300,700 and CNY 2,014,925,243.89 transferred into fixed assets in 2020. Its 91.07% cumulative-investment-to-budget measure is different from engineering progress. The management narrative separately records the new site’s 130,000-tonne and 120,000-tonne line ignitions; those components should not be added again to the aggregate 250,000-tonne programme. The note’s Jushi Group 300,000-tonne intelligent-manufacturing programme, phase II, reports 100% progress, a CNY 1,195,591,400 budget and CNY 950,758,023.28 of transfers. This is the scope named by the financial note; the programme title is not automatically an additional 300,000-tonne line on top of the individual line already described by management. A separate project for 60,000 tonnes of electronic yarn and 200 million metres of fabric reports 100% progress, a CNY 2,186,133,600 budget and CNY 89,580,981.44 of current-year transfers. It differs from the unfinished 300-million-metre fabric project. These transfers include costs accumulated before 2020, and neither budgets nor transfer amounts establish annual sales, actual output or the final full project cost.

Disclosed project budget / 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 3,104,300,700

Disclosed project budget / 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 1,195,591,400

Disclosed project budget / 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 2,186,133,600

Project transfer into fixed assets / 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 2,014,925,243.89

Project transfer into fixed assets / 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 950,758,023.28

Project transfer into fixed assets / 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 89,580,981.44

The 2020 non-operating expense table reports CNY 26,898,923.27 for US trial-production products sold externally during the year. The description concerns sales, but the amount is presented in an expense table, not as a separately disclosed revenue or cash receipt. Its reported accounting classification is therefore retained. This complements the other-current-asset note, which values unsold US trial products at estimated selling prices and reports CNY 23,643,999.23 at year end versus CNY 80,684,947.83 at the beginning. Subtracting the expense-table item from that opening asset does not produce a complete roll-forward of trial inventory, and the report is not used to invent sales proceeds, margin or cash collected. The disclosure shows that some trial products reached external sale; it does not prove that the full plant had reached designed output, that all US production was sold or that trial-product accounting represents ordinary commercial revenue.

US trial products sold: non-operating expense item / 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 26,898,923.27

The consolidated intangible-asset table reports CNY 782,786,193.31 of net carrying value at year end. Land-use rights account for CNY 672,833,787.46 and energy-use rights for CNY 31,678,441.50. The same table includes software, non-patented technology and mining rights. These categories describe assets recorded in the accounts, not a catalogue of newly commercialized products or a certificate that every plant meets all operating conditions. Gross acquisition cost, amortization and impairment must remain distinct from the closing net balance; the mining-right impairment is discussed separately and is not automatically assigned to the land or energy-right rows. Land right-of-use assets under leases are a separate accounting category. The report does not connect every intangible balance to a named project, remaining permit term or output entitlement. The operating evidence therefore comes from project, production and constraint disclosures rather than treating a positive asset value as permission to operate.

Net intangible 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 782,786,193.31

Net land-use rights / 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 672,833,787.46

Net energy-use rights / 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 31,678,441.5