China Jushi FY2020: Subsidiaries and invested companies

The company approved a public sale of 24.99% of Jushi Egypt, with board approval on 19 January and shareholder approval on 7 February 2020. The issuer identifies QIFEI LIMITED, a subsidiary of the China–Africa Industrial Capacity Cooperation Fund, as the buyer following listing on the Beijing property exchange. The disclosed price was USD 137,445,000, and the local transfer closed on 30 June 2020. The company retained 75.01% and continued consolidating Jushi Egypt. This was a minority ownership transaction; the entire Egyptian factory was not sold or removed from the operating perimeter. A USD sale price is not automatically attributable net profit or a CNY cash receipt. This management account does not by itself supply the cash settlement, transaction costs or equity-accounting bridge. The buyer is retained only as disclosed, without extending research into its other holdings.

Egypt minority transfer price / 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.

137,445,000 USD

The management table reports the full accounts of selected subsidiaries and associates in units of ten-thousand CNY. Wholly owned Jushi Group, the fiber operating company, recorded CNY 10,991,643,600 of revenue and CNY 2,423,050,100 of net profit. Jushi USA, held 70%, reported CNY 319,401,900 of revenue and a net loss of CNY 184,326,000; this is a company-level result, not a per-line loss or utilization calculation. Its registered capital is separately quoted in USD, so that capital entry must not be read in the financial table’s CNY unit. Wholly owned Beixin Technology Development, which sells building materials, reported CNY 415,155,300 of revenue and CNY 975,500 of net profit. The 32.04%-held Zhongfu Lianzhong composite-materials company produces and sells wind blades and reported full-company revenue of CNY 4,989,227,100 and net profit of CNY 567,883,200. The 20.10%-held Guangrongda leasing company reported CNY 26,671,100 of revenue and CNY 3,421,100 of net profit. An associate’s complete sales and profit are not amounts to add to Jushi’s consolidated accounts or automatically multiply by ownership to obtain recognized investment income. These rounded management figures retain their source precision and require financial-note context for consolidation and equity-method treatment. No new counterparty identities or operational claims are inferred.

Jushi Group 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 10,991,643,600

Jushi Group net profit / 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 2,423,050,100

Jushi USA 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 319,401,900

Jushi USA net profit / 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 -184,326,000

Beixin 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 415,155,300

Beixin net profit / 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 975,500

Zhongfu Lianzhong 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 4,989,227,100

Zhongfu Lianzhong net profit / 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 567,883,200

Guangrongda 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 26,671,100

Guangrongda net profit / 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 3,421,100

The subsidiary table connects the five manufacturing bases to a wider corporate network. Jushi Group, Jiujiang, Chengdu and Panden electronic materials are accompanied by raw-material businesses: Leishi powder processing, calcium and limestone operations around Jiujiang, Hongjia kaolin and Juhong mining. Overseas subsidiaries also support sales, equipment and materials trade; a trading company is not automatically a fiber furnace. The table distinguishes a US glass-fiber trading company, whose business-location and registration entries differ, from the US manufacturing company in South Carolina. It lists Jushi India Glass Fiber with a production-and-sales business description, while management still describes the India development proposal as conditional on pandemic risks. A registered activity therefore does not establish an operating Indian plant in 2020. Location and business descriptions are retained without adding precise addresses, coordinates, production capacity or orders. This grouping helps explain the company's procurement and distribution structure; it is not a new project-by-project commissioning record.

The financial note presents full-company US manufacturing revenue of CNY 319,401,900, net loss of CNY 184,326,000 and negative operating cash flow of CNY 145,074,100. The Egyptian company reports revenue of CNY 1,280,064,800, net profit of CNY 246,018,100 and positive operating cash flow of CNY 475,020,400. These figures are converted from the source's ten-thousand-CNY unit, retaining its rounding. They do not show the revenue or profit attributable only to the listed company's shareholders, and are not additions to consolidated totals. The separate minority-interest note allocates a negative CNY 55,297,790.45 to US minority shareholders and positive CNY 44,594,781.29 to Egyptian minority shareholders. The US minority holding is 30%; the Egyptian minority holding is 24.99% at year end after the mid-year disposal. Applying that Egyptian closing percentage to a full year of profit would ignore the change in ownership period. The note's reported allocation is used instead. The contrast between US losses and cash use and Egypt's earnings and cash generation is relevant to overseas development, without treating accounting profit as cash or asserting that either plant achieved design output.

US manufacturing operating cash flow / 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 -145,074,100

Egypt operating cash flow / 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 475,020,400

US profit allocated to minority shareholders / 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 -55,297,790.45

Egypt profit allocated to minority shareholders / 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 44,594,781.29

The issuer retained control of the Egyptian company after selling 24.99%, leaving a 75.01% holding. The financial transaction note reports CNY 973,041,877.50 of cash consideration and CNY 577,530,112.46 of net assets corresponding to the disposed share, with a difference of CNY 395,511,765.04. It separately reports CNY 288,966,506.11 as the capital-reserve adjustment. These two reported differences leave CNY 106,545,258.93 unexplained by this table; no foreign-exchange, tax or retained-earnings adjustment is invented to reconcile them. Continuing control means this is not a sale of the whole plant or a reason to remove all Egyptian operating results from consolidation. The capital-reserve note also records purchases of 10 percentage points of the Korean company, 25 points of the Canadian company and 40 points of the Spanish company. The aggregate negative CNY 1,498,660.27 capital-reserve effect of those purchases is not their total cash price. Combined with the Egyptian effect, the reported capital-reserve increase is CNY 287,467,845.84. Equity transaction adjustments must not be relabelled as ordinary fiber-sales earnings.

Egypt minority disposal cash consideration / 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 973,041,877.5

Net assets corresponding to Egypt disposed 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.

RMB 577,530,112.46

Reported Egypt consideration less net-asset 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.

RMB 395,511,765.04

Egypt transaction capital-reserve adjustment / 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 288,966,506.11

Capital-reserve decrease from other minority 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 1,498,660.27

Zhongfu Lianzhong in Lianyungang produces and sells wind blades and is held at 32.04%, with equity-method accounting. Its complete company revenue of CNY 4,989,227,062.54 and net profit of CNY 567,883,216.65 describe the associate's business, rather than additional Jushi consolidated revenue. The investment carrying value is CNY 1,215,914,921.15 after adjustments to Jushi's share of net assets; this is an investment balance, not a new blade-factory budget. Dividends received from the associate were CNY 31,887,864.36. The consolidated investment roll-forward recognizes CNY 170,276,833.19 of equity-method income for this associate and a negative CNY 917,158.35 other change. The parent-only roll-forward instead recognizes CNY 169,359,674.84 of equity-method income and reaches the same closing carrying value without that other-change row. Both tables reconcile to their own closing balance, but the note is not used to assert a further cause for the presentation difference. Dividends reduce the investment balance and are not a second recognition of the same associate profit. Other smaller associates include asset management and leasing; their aggregate earnings do not become glass-fiber output or new manufacturing capacity.

Zhongfu Lianzhong investment carrying value / 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 1,215,914,921.15

Dividends received from Zhongfu Lianzhong / 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 31,887,864.36

Consolidated equity income from Zhongfu Lianzhong / 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 170,276,833.19

Parent-only equity income from Zhongfu Lianzhong / 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 169,359,674.84

Consolidated other change in Zhongfu investment / 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 -917,158.35

In the parent-only accounts, other receivables include CNY 4,790,000,000.00 of lending principal: CNY 4,150,000,000.00 due from Jushi Group and CNY 640,000,000.00 from Jushi Chengdu. Receivable dividends of CNY 700,000,000.00 from Jushi Group appear at both the opening and closing dates. Their existence is not evidence of an additional consolidated external receivable or cash collected. Parent trade receivables of CNY 930,287,848.13 gross and CNY 105,332,599.47 of allowances also include identified group companies. The parent note attributes no allowance to specified intra-group amounts; that presentation is not an independent guarantee of repayment. Parent revenue of CNY 10,589,797,047.92 and investment income of CNY 874,360,870.25 belong to the separate legal entity, including cost-method dividend income and equity-method results. Consolidation eliminates qualifying internal balances and transactions, so these figures cannot be added again to the group totals. Parent subsidiary investment cost of CNY 10,136,366,917.18 is likewise not another group factory valuation or current-year construction spend.

Parent internal lending principal / 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 4,790,000,000

Parent dividend receivable from Jushi Group / 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 700,000,000

Parent-only revenue / 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 10,589,797,047.92

Parent-only investment income / 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 874,360,870.25