China Jushi FY2020: Markets, customers and suppliers

Glass fiber and related products generated FY2020 revenue of CNY 11,045,651,537.89 and cost of CNY 7,164,384,303.54. Revenue increased 11.14%, while cost increased 14.14%; the reported gross margin was 35.14%, down 1.71 percentage points. Management attributes the margin decline to lower fiber prices amid the domestic and overseas pandemic. Its separate account of domestic inventory reduction and two price increases in the third quarter does not imply that the full-year margin rose. Fiber represented 94.68% of total revenue but 96.38% of main-business revenue: these percentages have different denominators. The other category within the main-business table contributed CNY 414,982,932.84 of revenue, CNY 409,307,989.36 of cost and a 1.37% margin. It is not interchangeable with the separately defined other-business category in the financial notes. Consolidated revenue of CNY 11,666,196,819.43 and cost of CNY 7,724,853,724.22 cover a broader scope than these main-business categories. No annual average selling price is inferred by dividing these mixed product revenues by roving tonnage.

Fiber revenue / 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 11,045,651,537.89

Fiber cost / 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 7,164,384,303.54

Other main product revenue / 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 414,982,932.84

Other main product cost / 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 409,307,989.36

Consolidated revenue / 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 11,666,196,819.43

Consolidated cost / 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 7,724,853,724.22

Fiber gross margin / 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.

35.14%

The revenue note reports main-business revenue of CNY 11,460,634,470.73 and cost of CNY 7,573,692,292.90. Other-business revenue of CNY 205,562,348.70 and cost of CNY 151,161,431.32 are added to those main-business figures to obtain total revenue and cost. The separate product table places other products inside main business, alongside glass fiber and its products. Other products must therefore not be confused with other business or added a second time to the totals. Geographic and product tables are alternative views of the same main-business scope, not additional turnover. The issuer states that it is managed as one operating segment, with production and sales of glass fiber and products as its principal activities. Its product and regional detail remains useful for studying business mix, but is not evidence of independently reported segment profits. This distinction keeps readers from treating every presentation of the fiber business as a separate source of earnings.

Main-business revenue / 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 11,460,634,470.73

Main-business cost / 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 7,573,692,292.9

Other-business revenue / 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 205,562,348.7

Other-business cost / 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 151,161,431.32

Domestic main-business sales reached CNY 7,726,978,097.33, up 29.66%, with CNY 5,083,752,668.86 of cost and a reported 34.21% gross margin. Foreign sales were CNY 3,733,656,373.40, down 14.76%, with CNY 2,489,939,624.04 of cost and a 33.31% margin. Domestic margin improved 1.23 percentage points, while foreign margin fell 5.59 percentage points. Domestic sales represented 67.42% of main-business revenue. Management describes adjusting the domestic product mix, expanding larger customers and allocating overseas orders according to the capacity structure as demand weakened abroad. The two regions are another view of the same main-business totals in the product table; adding the product and region views would double count sales and cost. Sales geography is not factory geography, and no plant-level revenue or profit is reconstructed from the regional disclosure.

Domestic main business revenue / 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 7,726,978,097.33

Domestic main business cost / 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 5,083,752,668.86

Foreign main business revenue / 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 3,733,656,373.4

Foreign main business cost / 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 2,489,939,624.04

The five largest customers accounted for CNY 2,273,351,200 of sales, or 19.49% of annual sales. Within that total, related-party sales were CNY 1,774,861,400, or 15.21% of annual sales. The five largest suppliers accounted for CNY 2,109,554,900 of purchases, or 25.18% of annual procurement, including CNY 389,669,600 of related-party purchases, or 4.65% of annual procurement. The related-party amounts are subsets, not additional amounts to add to the top-five totals. Customer and supplier percentages use different denominators. The ranking disclosure does not name each counterparty or prove that an anonymous customer in one year is the same legal entity in another. These figures show the importance of concentrated and related business relationships without inventing individual customers, commercial contracts or procurement categories. No external investigation of counterparties is required by this entry.

Top five customer sales / 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 2,273,351,200

Related sales within top five / 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 1,774,861,400

Top-five supplier purchases / 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 2,109,554,900

Related-party purchases within five largest suppliers / 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 389,669,600

The related-party purchase table reports CNY 386,690,989.15 of transport fees to Zhenshi Group Zhejiang Yushi International Logistics and CNY 75,327,004.39 to Shanghai Tianshi International Freight Forwarding. It also reports CNY 74,319,987.09 of equipment purchases from Tongxiang Huarui Automatic Control Technology Equipment, alongside separately disclosed technical services and repairs. These disclosures connect shareholder-related businesses to transport and production equipment, with names translated from the report where it gives no English form. Transaction amounts are annual expenses or purchases within the specified table; they are not the closing payable balance, payments already made or proof that equipment reached production. Smaller catering, cleaning, clinic, exhibition and testing items are condensed because their individual activity lists do not establish a new material constraint. The relationship category is attributed to the issuer, without assuming all parties are wholly owned by the same group or that prices are independently proven fair. Research stops at the target issuer's disclosure rather than extending to each supplier.

Zhejiang Yushi related-party transport fees / 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 386,690,989.15

Shanghai Tianshi related-party transport fees / 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 75,327,004.39

Huarui related-party equipment purchases / 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 74,319,987.09

The related-party table reports CNY 1,545,407,715.20 of inventory sales to Zhenshi Holding Group, compared with CNY 11,858,877.47 in 2019, plus CNY 77,760,726.26 of raw-material sales in 2020. It separately reports CNY 147,398,187.27 of inventory sales to HENGSHI EGYPT FIBERGLASS FABRICS S.A.E. Inventory sales to Zhejiang Hengshi Fiber Foundation were CNY 10,509,658.31 versus CNY 673,854,960.75 in the prior-year column. This is a material change in the named transaction distribution, but the tables do not explain whether it reflects contract routing, customer reorganization or end-market demand. Those causes are left unknown. Inventory, raw materials, utility supplies and asset sales have different labels and are not silently combined into one fiber-product order. Related-party transaction lists and the top-five customer-concentration table have different scopes; a named party here is not automatically an identified member of an anonymous customer rank. The transactions establish disclosed relationships and amounts, not collected cash, independently assessed pricing or future orders.

Inventory sales to Zhenshi Holding / 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 1,545,407,715.2

Raw-material sales to Zhenshi Holding / 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 77,760,726.26

Inventory sales to Hengshi Egypt / 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 147,398,187.27

Inventory sales to Zhejiang Hengshi / 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 10,509,658.31