China Jushi FY2022: Markets, customers and suppliers

Markets and geographic economics

Group revenue growth differs from core glass-fiber performance

FY2022 glass-fiber and related-product revenue was CNY 16,866,869,940.62, down 5.48%, while its cost of revenue increased 10.24% to CNY 9,861,511,031.41. Reported gross margin was 41.53%, down 8.34 percentage points. This is product-category gross profitability, before group operating expenses, financing, tax and minority attribution. Management links pressure to rapid industry capacity growth and weaker demand, alongside falling roving sales and stronger electronic-fabric sales. Total consolidated revenue nevertheless rose 2.46% to CNY 20,192,222,964.59; management attributes that increase to other-business revenue. A separate other-main-business row reports CNY 692,722,075.95 revenue and 1.29% margin. The two main-business rows total CNY 17,559,592,016.57, below total consolidated revenue because the classifications have different coverage. The glass-fiber share is 96.06% of main-business revenue and 83.53% of all revenue, two different denominators. The other-main-business label is not automatically assigned the wind-power explanation used in a later filing. Group revenue and net profit therefore do not alone describe the demand and profitability of core fiber production.

Reported disclosureFY2022 annual report, p. 11 ↗FY2022 annual report, p. 12 ↗

Reported glass-fiber product revenue / 2022 / annual glass fiber and related product revenue: RMB 16,866,869,940.62
Reported glass-fiber product cost of revenue / 2022 / annual glass fiber and related product cost: RMB 9,861,511,031.41
Reported glass-fiber product gross margin / 2022 / annual glass fiber and related product gross margin: 41.53 percent

Material cost increases do not supply a full unit-cost explanation

Glass-fiber materials cost was CNY 3,903,501,954.66, up 27.95% from CNY 3,050,708,784.94. The reported 30.02% share of total cost numerically matches consolidated cost of revenue of CNY 13,004,199,984.94. Using the separate glass-fiber category cost instead would give about 39.58%, so 30.02% is not relabelled as a glass-fiber-only cost share. The source does not itemize every remaining cost component here or divide material-cost growth between prices, consumption and mix. It cannot establish a complete per-tonne cost increase or saving. Manufacturing uses mineral inputs melted and drawn into filaments, and the research discussion includes glass formulations, sizing chemistry, equipment and cleaner production. Management describes ore substitution, self-made inputs, packaging changes and energy-saving initiatives. Those explain possible operating levers but do not provide a measured saving for each initiative or prove that all product costs fell.

Reported disclosureFY2022 annual report, p. 9 ↗FY2022 annual report, p. 10 ↗FY2022 annual report, p. 11 ↗FY2022 annual report, p. 12 ↗FY2022 annual report, p. 13 ↗FY2022 annual report, p. 14 ↗

Reported glass-fiber materials cost / 2022 / glass fiber material cost: RMB 3,903,501,954.66
Reported materials share of total cost / 2022 / materials share of total cost matches consolidated denominator: 30.02 percent

Industry growth and company sales require separate interpretation

The annual industry discussion cites the China Glass Fiber Industry Association and reports Chinese glass-fiber yarn output of 6.87 million tonnes, up 10.2%. Composite-product output was about 6.41 million tonnes, up 9.8%, with thermoplastic composites growing while thermoset output fell. Management describes weak wind-power and property-related markets but stronger automotive, infrastructure and electronics conditions. This is industry context, not Jushi orders or production. Chinese glass-fiber and product exports were reported at 1.83 million tonnes and USD 3.29 billion, up 9.0% and 7.9% respectively. The cited export subsection does not state a glass-wool exclusion; the recorded figure retains the disclosed coverage rather than adding an unstated exclusion. Yarn, electronic fabric/mat products and finished composites are different scopes and cannot be silently joined into a single production series. The report gives global application shares of 35% construction, 29% transport, 15% electronics, 12% industrial equipment and 9% energy/environment. These are industry estimates, not Jushi revenue shares. Its six-producer capacity concentration above 75% is a combined industry estimate, not Jushi’s own market share or independently certified ranking. Historical charts and management leadership forecasts are condensed while the differing product and market conditions remain explained.

Reported disclosureFY2022 annual report, p. 10 ↗FY2022 annual report, p. 15 ↗FY2022 annual report, p. 16 ↗FY2022 annual report, p. 17 ↗FY2022 annual report, p. 18 ↗FY2022 annual report, p. 19 ↗

Reported Chinese industry glass-fiber yarn output / 2022 / national glass fiber yarn output not jushi: 6,870,000 tonnes
Reported Chinese industry glass-fiber and product exports excluding glass wool / 2022 / national glass fiber products exports disclosed coverage not jushi: 1,830,000 tonnes

Customer geography and factory geography answer different questions

Jushi reports one operating segment for glass fiber and its products. This describes management reporting, rather than proving identical margins at every factory or for every product. The external-transaction note gives CNY 16,866,869,940.62 for glass-fiber-related activities and CNY 692,722,075.95 for other activities, totaling CNY 17,559,592,016.57. That total matches the main-business revenue in the consolidated revenue note; it is not the entire CNY 20,192,222,964.59 consolidated turnover. The geographic split is CNY 10,033,533,370.50 for mainland China and CNY 7,526,058,646.07 outside mainland China, assigned by customer location. The foreign amount therefore is not solely output from overseas plants or exports from Chinese factories. Non-current assets instead follow asset location: CNY 29,228,907,718.16 in mainland China and CNY 7,082,596,963.83 outside, totaling CNY 36,311,504,681.99. This geographic asset table excludes financial and deferred-tax assets. Management’s statement that customers are dispersed and do not create major-customer dependence remains its assessment alongside the quantitative concentration disclosures.

Reported disclosureFY2022 annual report, p. 153 ↗FY2022 annual report, p. 179 ↗FY2022 annual report, p. 180 ↗

Reported external revenue by segment-note category / 2022 / FY2022 annual: specified consolidated, parent only or source note category; original CNY/% retained. Annual flows and year end balances distinct. No inferred cash, plant allocation or current tax guidance.: RMB 16,866,869,940.62
Reported external revenue by segment-note category / 2022 / FY2022 annual: specified consolidated, parent only or source note category; original CNY/% retained. Annual flows and year end balances distinct. No inferred cash, plant allocation or current tax guidance.: RMB 692,722,075.95
Reported external revenue by segment-note category / 2022 / FY2022 annual: specified consolidated, parent only or source note category; original CNY/% retained. Annual flows and year end balances distinct. No inferred cash, plant allocation or current tax guidance.: RMB 17,559,592,016.57
Reported revenue by customer location / 2022 / FY2022 annual: specified consolidated, parent only or source note category; original CNY/% retained. Annual flows and year end balances distinct. No inferred cash, plant allocation or current tax guidance.: RMB 10,033,533,370.5
Reported revenue by customer location / 2022 / FY2022 annual: specified consolidated, parent only or source note category; original CNY/% retained. Annual flows and year end balances distinct. No inferred cash, plant allocation or current tax guidance.: RMB 7,526,058,646.07
Reported non-current assets by asset location excluding financial and deferred-tax assets / 2022 / FY2022 annual: specified consolidated, parent only or source note category; original CNY/% retained. Annual flows and year end balances distinct. No inferred cash, plant allocation or current tax guidance.: RMB 29,228,907,718.16
Reported non-current assets by asset location excluding financial and deferred-tax assets / 2022 / FY2022 annual: specified consolidated, parent only or source note category; original CNY/% retained. Annual flows and year end balances distinct. No inferred cash, plant allocation or current tax guidance.: RMB 7,082,596,963.83
Reported non-current assets by asset location excluding financial and deferred-tax assets / 2022 / FY2022 annual: specified consolidated, parent only or source note category; original CNY/% retained. Annual flows and year end balances distinct. No inferred cash, plant allocation or current tax guidance.: RMB 36,311,504,681.99

Markets, customers and suppliers

Regions and channels classify the same main-business revenue

Domestic main-business revenue was CNY 10,033,533,370.50 at 34.64% gross margin, while foreign revenue was CNY 7,526,058,646.07 at 47.02%. The report says domestic revenue fell 20.48% and foreign revenue rose 21.93%, attributing the difference to weak domestic demand and a temporary recovery overseas. These are management explanations for historical FY2022 results, not evidence that every overseas plant or country improved. Direct sales were CNY 11,983,542,741.79 at 37.28% margin; distributor sales were CNY 5,576,049,274.78 at 45.68%. Domestic and foreign totals reconcile to CNY 17,559,592,016.57, as do direct and distributor totals. Regions and channels are two classifications of the same main-business revenue, not four independent revenues to add. Direct sales represented 68.24% and domestic sales 57.14% of that main-business denominator. A higher distributor margin does not by itself demonstrate superior pricing for identical products: the source does not provide matched product, region and customer economics. Foreign revenue is not automatically an export-order total, overseas-plant revenue or a named project’s sales.

Reported disclosureFY2022 annual report, p. 11 ↗FY2022 annual report, p. 12 ↗

Reported domestic main-business revenue / 2022 / annual main business domestic revenue: RMB 10,033,533,370.5
Reported foreign main-business revenue / 2022 / annual main business foreign revenue: RMB 7,526,058,646.07
Reported domestic main-business gross margin / 2022 / annual main business domestic margin: 34.64 percent
Reported foreign main-business gross margin / 2022 / annual main business foreign margin: 47.02 percent
Reported direct main-business sales / 2022 / annual main business direct sales: RMB 11,983,542,741.79
Reported distributor main-business sales / 2022 / annual main business distributor sales: RMB 5,576,049,274.78
Reported direct-sales gross margin / 2022 / annual main business direct margin: 37.28 percent
Reported distributor-sales gross margin / 2022 / annual main business distributor margin: 45.68 percent

Customer and supplier concentration use different transaction bases

The five largest customers accounted for CNY 4,380,290,400 of FY2022 sales, or 21.69% of annual sales. Related-party sales within that top-five group were CNY 1,947,911,900, or 9.65% of annual sales. The related amount is a subset, not extra revenue or all related-party sales across every customer. The five largest suppliers accounted for CNY 6,991,847,700 purchases, or 36.05% of annual purchases; related-party procurement within that group was CNY 844,643,000, or 4.36%. Purchases and sales have different denominators, and these flows are not year-end payables or receivables, cash settled or a named project’s spending. The source does not name the five parties in this concentration subsection. Named related-transaction notes must not be used to invent the anonymous ranking or final customers. Both specified exceptional-dependence disclosures are marked not applicable, which does not establish absence of ordinary concentration or settlement risk. Management separately describes longer contracts and certification work with strategic customers, without disclosing quantities secured by those contracts.

Reported disclosureFY2022 annual report, p. 8 ↗FY2022 annual report, p. 12 ↗

Reported top-five customer annual sales / 2022 / annual top five customer sales: RMB 4,380,290,400
Reported related-party annual sales within top-five customers / 2022 / annual related party sales subset within top five: RMB 1,947,911,900
Reported top-five customer share of annual sales / 2022 / annual top five customer sales share: 21.69 percent
Reported related-party subset share of annual sales / 2022 / annual related party subset within top five sales share: 9.65 percent
Reported top-five supplier annual purchases / 2022 / annual top five supplier purchases: RMB 6,991,847,700
Reported related-party purchases within top-five suppliers / 2022 / annual related party purchases subset within top five: RMB 844,643,000
Reported top-five supplier share of annual purchases / 2022 / annual top five supplier purchases share: 36.05 percent
Reported related-party subset share of annual purchases / 2022 / annual related party subset within top five purchase share: 4.36 percent

Named trading relationships

Equipment and engineering procurement differs from operating freight

Zhenshi Holding is a major disclosed related trading relationship

Huamei purchases increased, with products, materials and utilities separated

The named Egyptian fabric relationship is distinct from Jushi Egypt

An international trader buys products and separate warehouse services

Turkiz has product sales, receivables and customer advances

Blade, carbon-fiber and trading connections do not disclose final orders

Read the complete annual research snapshot

Sources and scope

What this guide establishes

This page presents material business disclosures from the FY2022 full annual report; it is not a sentence-by-sentence translation of every disclosure.
Material management, financial, governance, annual environmental/social, important-matter, ownership and bond inventories are reviewed by reader question. This is material selection, not a complete translation or independent approval.
Event dates may differ from the reporting year. Subsequent events disclosed in this annual report are dated explicitly; later annual outcomes are not inserted into this historical account.
The Chinese source was translated and compared with cited pages by the same assistant. Independent editorial approval and source-use basis remain pending; this is an internal research draft.
Capacity, physical output, sales, project budgets and construction accounting are distinct. Committee decisions are not commissioning; repairs are not automatically incremental capacity. Leadership claims, recognition, product development and following-year plans are attributed, not proven orders or achieved outcomes.
Investee tables retain organizational and currency scopes. Workforce covers parent/main subsidiaries at year-end, not average FTE or outsourced headcount. Incentive movements, expenses and distributions differ; proposed and approved/declared dividends do not establish a cash payment date.
Guarantees and bank wealth-management distinguish annual activity, outstanding balance, contract scope and income. The contract timing bridge is a disclosed-date calculation, not an issuer explanation or proof of risk-free cash recovery.
Environmental compliance/treatment/monitoring descriptions are issuer claims, not independently verified individual permits. Associate emissions remain separate; the printed standard-reference inconsistency remains unresolved. Claimed avoided emissions lack a shown baseline/factors; the separate ESG report is not reviewed.
Cash definitions and the complete operating-cash reconciliation, credit allowances, relocation claims and inventory composition are explained. Anonymous debtors remain anonymous; claims are not collected cash, and physical stock is not inferred from value. Manufacturing assets and all eight important construction accounts are explained; budget units, engineering progress and the qualified investment-ratio column remain separate. Land, energy and discharge-right carrying values and all eleven asset-grant rows are explained with cash/recognition/FX boundaries. Borrowing, bonds, bills and issuer maturity analysis are explained without double counting or treating the limited table as all future obligations. The organizational and mineral perimeter, subsidiary/minority cash scopes and associate investment are explained with distinct entities. Parent accounts, geographic, nonrecurring, FX, tax and goodwill scopes are explained in the material financial inventory.
Material related-party purchases, sales and balances are explained with current/prior columns, transaction directions and category boundaries. Three exact registry identities supplement reused counterparties; English translations from Chinese are working names. No outward partner research, inferred final orders or independent pricing assurance. Material financial and management inventories are reviewed; source-use and independent editorial approval remain pending.
Parent-only receivables, investments, income and cash are not additional consolidated external business. Nonrecurring bridges are arithmetic source-note reconciliations, not independently normalized profit; the selected-metal versus broader disposal-gain difference remains unitemized. Foreign monetary balances, translation outside net profit, signed finance FX and cash FX retain separate scopes. Historical tax rates/valuation assumptions are issuer disclosures, not current guidance or independent assurance. Source-use and independent editorial gates remain pending.
Selected recognition policies, equity distributions and ownership/control explanations are included. Equity distributions, combined cash dividends/profits/interest, parent cash, minority capital and later dividend proposals have separate scopes. Shareholder pledges are subsets of registered holdings; unknown beneficial/relationship details remain unknown. Upper control-chart percentages are not Jushi ownership. Material management and financial inventories are reviewed; source-use and independent editorial gates remain pending.

FY2022 full annual report ↗
Chinese / A-share / Chinese Accounting Standards / Published 2023-03-21
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