China Jushi FY2023: Markets, customers and suppliers

The FY2023 main-business table reports glass-fiber and related-product revenue of CNY 14,422,519,043.04 and cost of CNY 10,446,817,040.40. Revenue fell 14.49% while cost rose 5.94%; the reported gross margin was 27.57%. Management links lower revenue and margins to a large fall in glass-fiber selling prices, despite increased domestic and overseas sales volumes. The table gives a margin decline of 13.96 percentage points, whereas the adjacent narrative says 13.97; the difference is retained as a source inconsistency, with no invented correction. These are product-category main-business results, not the listed group’s total consolidated revenue or the profit of a particular furnace. The separate other-product row has CNY 136,931,126.74 revenue and a 2.24% margin; this FY2023 passage does not identify it as the wind-generation business described in the later FY2024 filing.

Glass-fiber main-business revenue / 2023 / main business glass fiber

RMB 14,422,519,043.04

Glass-fiber main-business cost / 2023 / main business glass fiber

RMB 10,446,817,040.4

Glass-fiber reported gross margin / 2023 / main business glass fiber

27.57%

Jushi manages glass fiber and its products as one operating segment. This describes management reporting; it does not establish that every product, factory or customer has the same economics. The external-transaction note reports CNY 14,422,519,043.04 from glass-fiber-related activities and CNY 136,931,126.74 from other activities, totaling CNY 14,559,450,169.78. The same total is split into CNY 9,000,380,301.66 for mainland China and CNY 5,559,069,868.12 for countries and regions outside mainland China. Revenue is attributed to the customer’s location, so the foreign amount is not automatically shipments from Chinese plants or revenue made solely by overseas factories. Non-current assets are assigned to the asset’s location instead: CNY 30,991,349,081.50 in mainland China and CNY 7,271,023,367.68 outside, totaling CNY 38,262,372,449.18. This asset disclosure excludes financial assets and deferred tax assets; it is not the group’s complete balance-sheet asset total. Management describes customers as dispersed and states that it does not depend on major customers. That qualitative statement remains an issuer assessment, alongside the separately disclosed customer-concentration figures.

Reported external revenue by segment-note category / 2023 / annual glass fiber related external revenue

RMB 14,422,519,043.04

Reported external revenue by segment-note category / 2023 / annual other external revenue

RMB 136,931,126.74

Reported external revenue by segment-note category / 2023 / annual total segment note external revenue

RMB 14,559,450,169.78

Reported revenue by customer location / 2023 / annual mainland customer revenue

RMB 9,000,380,301.66

Reported revenue by customer location / 2023 / annual outside mainland customer revenue

RMB 5,559,069,868.12

Reported non-current assets by asset location excluding financial and deferred-tax assets / 2023 / annual mainland noncurrent geographic assets

RMB 30,991,349,081.5

Reported non-current assets by asset location excluding financial and deferred-tax assets / 2023 / annual outside mainland noncurrent geographic assets

RMB 7,271,023,367.68

Reported non-current assets by asset location excluding financial and deferred-tax assets / 2023 / annual total noncurrent geographic assets

RMB 38,262,372,449.18

Glass fiber serves construction, transport, electronics, industrial equipment and energy applications. The FY2023 report describes global end-use shares of 35%, 29%, 14%, 12% and 10% respectively; these industry estimates are not Jushi revenue shares. Reinforcing fibers improve composite performance, while electronic yarn and fabric serve electrical and circuit-board applications. The report describes a concentrated supplier industry: six producers together account for about 70% of global capacity, not a 70% share for Jushi alone. Its industry discussion, citing the China Glass Fiber Industry Association, reports Chinese glass-fiber yarn output of 7.23 million tonnes, up 5.2%. Electronic yarn output was 788,000 tonnes, down about 2.2%; modest downstream demand could not absorb preceding capacity growth, keeping electronic yarn and fabric prices low. Demand for wind composites grew from 2022 but remained below expectations; automotive thermoplastic composites grew while appliance demand disappointed. Chinese glass-fiber and product exports, excluding glass wool and its products, reached 1.797 million tonnes, up 3.5%, while export value fell 11.5% to USD 2.66 billion. Growing national tonnage therefore did not establish growing sales value. Management describes industry inventory pressure and price cuts early in 2023, some midyear supply-demand improvement without sustained price recovery, and renewed cuts in the fourth quarter. This is the report’s historical industry account, not a current price assessment or a forecast. National output, exports and application shares are not Jushi production, export orders or project capacity. They provide context for reading Jushi’s separate roving/fabric sales, regional margins and product commercialization disclosures.

Reported Chinese industry glass-fiber yarn output / 2023 / national glass fiber yarn output not jushi

7,230,000 tonnes

Reported Chinese industry glass-fiber and product exports excluding glass wool / 2023 / national glass fiber products exports excluding glass wool not jushi

1,797,000 tonnes

The glass-fiber materials row reports CNY 3,619,952,449.71 of FY2023 material cost, down 7.26% from CNY 3,903,501,954.66. Its reported share of total cost is 33.80%. Numerically, that rounded share matches consolidated cost of revenue of CNY 10,710,222,075.86; dividing by the separate glass-fiber category cost of CNY 10,446,817,040.40 gives about 34.65%, a different denominator. The reported 33.80% is retained with its basis rather than relabelled as a glass-fiber-only cost share. The source does not itemize every remaining cost component in this table. Material expenditure alone cannot establish energy, labor or per-tonne savings, nor explain the entire glass-fiber margin decline. Its change can reflect input prices, consumption and production mix, which this row does not separately quantify. The disclosed process uses mineral inputs melted and drawn into filaments, making material and energy conditions relevant to manufacturing economics; the table is not a project-specific materials budget.

Reported glass-fiber materials cost / 2023 / glass fiber material cost

RMB 3,619,952,449.71

Reported materials share of total cost / 2023 / materials share of total cost matches consolidated denominator

33.8 percent

FY2023 domestic main-business revenue was CNY 9,000,380,301.66, down 10.30%, with a 22.92% gross margin. Overseas main-business revenue was CNY 5,559,069,868.12, down 26.14%, with a 34.46% margin. Management says volumes increased in both markets, but lower selling prices reduced revenue and margins. Direct sales generated CNY 10,307,171,605.33 at a 26.86% margin, while distributor sales generated CNY 4,252,278,564.45 at a 28.47% margin. These channel rows describe how products reach customers; geographic rows describe markets. They are two views of the same main-business revenue, not additional sales to sum together. Overseas revenue is not synonymous with the revenue of the Egyptian and US subsidiaries, and the passage does not disclose a price for each grade or a named customer order.

Domestic main-business revenue / 2023 / main business domestic

RMB 9,000,380,301.66

Domestic main-business gross margin / 2023 / main business domestic

22.92%

Overseas main-business revenue / 2023 / main business overseas

RMB 5,559,069,868.12

Overseas main-business gross margin / 2023 / main business overseas

34.46%

Direct-sales main-business revenue / 2023 / main business direct sales

RMB 10,307,171,605.33

Distributor main-business revenue / 2023 / main business distributor sales

RMB 4,252,278,564.45

The annual report discloses purchases from the five largest suppliers of CNY 2,851,639,100, equal to 23.58% of annual purchases. Related-party purchases within that group were CNY 609,977,400, or 5.04% of annual purchases. The related-party amount is included in the top-five total, not an additional procurement category. The disclosure marks the specified single-supplier/new-top-five/dependence situation as not applicable; that is not proof of zero supply risk. It does not name all five suppliers, identify which raw materials they provided or assign purchases to a plant. The separately disclosed electricity, gas, mineral and chemical-input exposure explains why continuity and input prices matter without extending research into suppliers’ own businesses.

Top-five supplier purchases / 2023 / annual top five suppliers

RMB 2,851,639,100

Related-party purchases within five largest suppliers / 2023 / annual top five suppliers related

RMB 609,977,400

The five largest customers accounted for CNY 1,873,643,200 of FY2023 sales, or 12.60% of annual sales. Within that total, related-party customers accounted for CNY 1,705,141,100, or 11.46% of annual sales. The related-party amount is a subset of the top-five total, not an additional sales category. It is not a statement of all related-party sales across every customer. This concentration disclosure helps a reader assess the role of affiliated counterparties in reported sales, but does not identify the five anonymized customers or establish their ultimate customers and end-use demand. Separate named related-party transaction notes retain their own scope and are not used to invent the anonymous list. The report marks the specified exceptional-customer scenario as not applicable; that does not remove ordinary concentration, settlement or related-party risks. These are annual sales figures. The separate 37.40% top-five parent-company receivable concentration measures balances at year-end and must not be substituted for this sales measure.

Reported top-five customer annual sales / 2023 / annual top five customer sales

RMB 1,873,643,200

Reported related-party annual sales within top-five customers / 2023 / annual related party sales subset within top five

RMB 1,705,141,100

Reported top-five customer share of annual sales / 2023 / annual top five customer sales share

12.6 percent

Reported related-party subset share of annual sales / 2023 / annual related party subset within top five sales share

11.46 percent

The issuer’s related-party purchase table identifies Zhenshi Group Zhejiang Yushi International Logistics with CNY 609,109,484.28 of transport and ocean-freight services, compared with CNY 844,328,366.07. Tongxiang Huarui Automatic Control Technology Equipment supplied CNY 166,121,544.61 of equipment, versus CNY 142,249,764.80; a separate Huarui row reports CNY 919,312.38 technical services and repairs. Shanghai Tianshi International Freight Forwarding supplied CNY 113,002,796.79 transport services and QUARTZ LOGISTICS INC. CNY 83,399,725.47. CNBM International Engineering Group supplied CNY 62,909,292.03 engineering services. These disclosures show how related companies participate in delivery and investment. The amounts are transaction categories, not all current operating expense, a named project allocation or evidence that every transaction was paid during the year. The annual report’s related-party classification is preserved without independently extending research into the counterparties or inferring that related pricing was disadvantageous.

Reported related-party purchase or service transaction / 2023 / annual yushi transport ocean freight

RMB 609,109,484.28

Reported related-party purchase or service transaction / 2023 / annual huarui equipment

RMB 166,121,544.61

Reported related-party purchase or service transaction / 2023 / annual cnbm international engineering

RMB 62,909,292.03

The related-sales note reports CNY 702,984,912.35 of inventory-product sales to Zhejiang Zhenshi New Materials and CNY 477,001,298.70 to Tongxiang Hengxian Import and Export. The latter comparative amount was CNY 12,792,784.59; a large change in this named trading relationship does not by itself identify final customer demand or exports to a particular country. Product sales to Zhenshi Holding were CNY 264,616,310.50, compared with CNY 1,296,146,377.65, and to Zhenshi Group Huamei New Materials CNY 166,487,022.80, versus CNY 378,650,265.74. The same counterparties may also buy raw materials, water/electricity or fixed assets, disclosed as separate categories. These selected rows are not the total of every related-party sale or an unduplicated measure of final-market demand. The year-end related-party balance table separately reports CNY 71,991,650.51 of contract and other current liabilities to Hengxian; this is not another sale to add to annual revenue.

Reported related-party sales transaction / 2023 / annual zhejiang zhenshi inventory products

RMB 702,984,912.35

Reported related-party sales transaction / 2023 / annual hengxian inventory products

RMB 477,001,298.7

Reported related-party sales transaction / 2023 / annual zhenshi holding inventory products

RMB 264,616,310.5

In FY2023, Zhenshi Group Zhejiang Yushi International Logistics supplied transport and ocean-freight services to the Jushi business. The annual report lists the counterparty as a subsidiary of a shareholder. This records the disclosed transaction direction, not ownership by Jushi, final customer demand, cash settlement or an allocation to a specific factory or project.

In FY2023, Tongxiang Huarui Automatic Control Technology Equipment supplied equipment to the Jushi business. The annual report lists the counterparty as a subsidiary of a shareholder. A separate row also records technical services and repairs. This records the disclosed transaction direction, not ownership by Jushi, final customer demand, cash settlement or an allocation to a specific factory or project.

In FY2023, Shanghai Tianshi International Freight Forwarding supplied transport services to the Jushi business. The annual report lists the counterparty as a subsidiary of a shareholder. This records the disclosed transaction direction, not ownership by Jushi, final customer demand, cash settlement or an allocation to a specific factory or project.

In FY2023, QUARTZ LOGISTICS INC. supplied transport services to the Jushi business. The annual report lists the counterparty as a subsidiary of a shareholder. This records the disclosed transaction direction, not ownership by Jushi, final customer demand, cash settlement or an allocation to a specific factory or project.

In FY2023, China National Building Materials International Engineering Group supplied engineering services to the Jushi business. The annual report lists the counterparty as a fellow group company. This records the disclosed transaction direction, not ownership by Jushi, final customer demand, cash settlement or an allocation to a specific factory or project.

In FY2023, the Jushi business sold inventory goods to Zhejiang Zhenshi New Materials. The annual report lists the counterparty as another related party. Other rows separately disclose raw-material and energy sales and raw-material procurement; directions and categories are not netted together. This records the disclosed transaction direction, not ownership by Jushi, final customer demand, cash settlement or an allocation to a specific factory or project.

In FY2023, the Jushi business sold inventory goods to Tongxiang Hengxian Import and Export. The annual report lists the counterparty as another related party. Its trading-company name does not identify the final buyer or destination country. This records the disclosed transaction direction, not ownership by Jushi, final customer demand, cash settlement or an allocation to a specific factory or project.

In FY2023, the Jushi business sold inventory goods to Zhenshi Holding. The annual report lists the counterparty as a shareholder. This records the disclosed transaction direction, not ownership by Jushi, final customer demand, cash settlement or an allocation to a specific factory or project.

In FY2023, the Jushi business sold inventory goods to Zhenshi Group Huamei New Materials. The annual report lists the counterparty as a subsidiary of a shareholder. This named entity is kept separate from the differently named Egyptian Huamei company in the same filing. This records the disclosed transaction direction, not ownership by Jushi, final customer demand, cash settlement or an allocation to a specific factory or project.