China Jushi FY2022: Products and glass-fiber technology

The next generation of E9 was upgraded for industrial production and application. Management described the E7, E8 and E9 range as serving demand for larger and lighter wind blades. It also discussed glass fiber for CFRT thermoplastic prepreg tape and development of high-modulus yarn for wind-blade spar pultrusion, among other new products. These are product and development disclosures; no grade-by-grade sales or independent comparative performance test is given in this passage.

Jushi manufactures glass fiber and related products, rather than the complete range of finished goods that use them. The annual report explains the production route: mineral ingredients, including pyrophyllite, kaolin, limestone and quartz sand, are proportioned, melted at high temperature, drawn into fine filaments, dried and wound. Each strand contains hundreds or even thousands of filaments; the source describes individual diameters from a few to more than twenty micrometres. This is industry process background, not a specification for every Jushi grade. It describes glass fiber as an inorganic, non-metallic material used for reinforcement in composites, electrical insulation, thermal insulation and circuit-board substrates. Stated advantages include electrical insulation, heat resistance, corrosion resistance and mechanical strength; their suitability for a particular finished component is not independently demonstrated by this description. The report distinguishes alkali-free, medium-alkali and high-alkali glass by composition, and says alkali-free glass represents more than 95% of industry output. That industry percentage is not Jushi’s own sales mix. Its commercial disclosures distinguish roving and related products measured in tonnes from electronic fabric measured in metres. Those forms serve different applications and cannot be combined into one physical output or sales total.

R&D investment was RMB 577,046,498.71, all expensed, equal to 2.86% of revenue; the company listed 1,303 research personnel. The operating discussion describes connecting manufacturing and business-management data and extending digital systems to equipment-making and packaging factories. These are process and management initiatives accompanying materials research, rather than evidence of a quantified cost saving for every digital application.

For FY2022, management describes upgrading its E9 ultra-high-modulus glass fiber to improve industrial production and application. It positions the E7, E8 and E9 family around customers seeking larger and lighter wind-turbine blades. It also reports developing high-modulus yarn for the pultruded reinforcement of a wind blade’s main beam, glass fiber for thermoplastic pre-impregnated tape, and greater emphasis on ultra-thin electronic fabric. These are fiber or fabric inputs for downstream manufacturing, not disclosure that Jushi delivered finished turbines or circuit boards. The thermoplastic-tape product is reported as included in Zhejiang’s first-batch new-materials list; inclusion is a disclosed recognition, not a quantified supply contract or independent comparative test. The source also lists products labelled LFT and CFRT, without defining those abbreviations in this annual discussion. No present-day product catalogue specification is inserted into FY2022 or assigned to an unnamed grade. The discussion does not quantify each new product’s sales, realized market share, modulus, fiber diameter, customer qualification conditions or incremental profit. Commercial product development, industrial-production suitability and actual customer delivery therefore remain different claims. Management’s descriptions of solving import dependence and international leadership remain its own assessments.

The disclosed research programme covers glass formulations, sizing chemicals, new fiber products, composite applications, production-process equipment, cleaner production and intelligent manufacturing. It therefore spans both materials sold to customers and the manufacturing system used to make them. Management claims core proprietary technology in glass formulations, large glass-fiber furnaces and green manufacturing, together with an ability to provide complete technology packages. The annual narrative does not independently compare that capability with every competitor or identify a delivered technology-export contract. Its factory discussion describes linking manufacturing and business-management data and putting digital projects at the headquarters equipment-making centre and packaging factory into operation. These initiatives support its stated effort to make process accessories, non-standard parts and key equipment internally; the narrative does not give a separate production saving or financial return for each digital project. The already reported research expenditure, expensing and personnel figures measure resources committed to research. They do not measure the revenue of newly commercialized products, prove each project succeeded or establish an asset value for every research activity. Patent awards and corporate honours are condensed rather than used as substitutes for product performance or economic outcomes.

Jushi’s FY 2022 policy expenses research-stage spending when incurred. Development-stage spending becomes an intangible asset only when all stated conditions are met: technical feasibility of completion, an intention to finish and use or sell it, evidence of expected economic benefits or internal usefulness, sufficient technical and financial resources, and reliable measurement of attributable costs. Development spending that fails these conditions is expensed; where the stages cannot be distinguished, all spending is expensed. This helps readers interpret the reported research programme and capitalized assets without treating capitalization as a patent, customer qualification, order or commercial success. Conversely, expensing does not by itself show that the technology lacks value. Construction spending follows another policy: costs, including qualifying borrowing costs, transfer into fixed assets when ready for the intended use. That accounting transfer is not independent evidence of design output, customer acceptance or a particular furnace’s commissioning date. The separately disclosed platinum-rhodium production tooling retains its special consumption-cost treatment rather than ordinary depreciation.