Summary of 2025 Annual Report of FIYTA Precision Technology Co. Ltd.Stock Codes: 000026 200026 Stock Abbreviation: FIYTA FIYTA B Announcement No.: 2026-007

Summary of 2025 Annual Report of

FIYTA Precision Technology Co. Ltd.I. Important notes

This Annual Report Summary is excerpted from the full text of the Annual Report. For a comprehensive understanding

of the Company's operating results financial position and future development plans investors should carefully read

the full Annual Report on the media designated by the CSRC.All directors have attended the board meeting to review this report.Notes on non-standard audit opinion

Not applicable

Profit distribution plan or plan for converting capital reserve into share capital for the reporting period as reviewed by

the Board of Directors

Whether to convert capital reserve into share capital

No

The profit distribution plan approved by the Board of Directors is as follows: based on the total share capital on the

record date for the future implementation of the profit distribution plan a cash dividend of 1.20 yuan per 10 shares (tax

inclusive) will be distributed to all shareholders with no bonus shares (tax inclusive) and no conversion of capital

reserve into share capital.Profit distribution plan for preferred shares for this reporting period as approved by the Board of Directors

Not applicable

This report is prepared in both Chinese and English. In case of any discrepancy in the interpretation of this report the

Chinese version shall prevail.II. Company profile

1. Company profile

Stock abbreviation FIYTA FIYTA B Stock code 000026 200026

Stock exchange Shenzhen Stock Exchange

where the shares

1Summary of 2025 Annual Report of FIYTA Precision Technology Co. Ltd.

are listed

Stock abbreviation

before change None

(If any)

Contact

Secretary to the Board of Directors Securities Affairs Representative

Information

Name Song Yaoming Xiong Yaojia

20/F FIYTA Technology Building Gaoxinnan 20/F FIYTA Technology Building Gaoxinnan

Office address

1st Road Nanshan District Shenzhen 1st Road Nanshan District Shenzhen

Fax 0755－83348369 0755－83348369

Tel 0755－86013669 0755－86013669

Email investor@fiyta.com.cn investor@fiyta.com.cn

2. Description of major businesses or products during the reporting period

(I) Industry landscape during the reporting period

Currently the company faces an increasingly complex and severe external environment. While China's retail

market continues to expand upgrade and experience a marginal recovery in consumer confidence there is notable

divergence in consumer product categories. The watch industry specifically is experiencing a downturn. According to

2025 data from the China Horologe Association and the Federation of the Swiss Watch Industry the operating

revenue of domestic timepiece enterprises above a designated size decreased by 9.70% year-on-year and the value

of Swiss watch exports to Mainland China declined by 12.1% year-on-year. Conversely the high-end manufacturing

industry benefits from demand driven by emerging sectors like embodied intelligence and the low-altitude economy

presenting a broader market prospect.In this context the company will enhance the competitiveness and market share

of its watch business thereby stabilizing its core watch segment. This will be achieved by strengthening customer

research and insights deepening brand partnerships in the comprehensive watch service business and fostering

product differentiation in its proprietary brand business. Simultaneously the company will stay committed to the

transformation and upgrade of its precision technology sector increasing investment in key talent and technology to

accelerate the development of its emerging industry business.(II) Main business analysis

In 2025 the Company continued to deepen its presence in the watch business consolidating its leading position

in the domestic watch market and enhancing its core competitiveness. It accelerated strategic transformation and

upgrading to strengthen its core functions. During the reporting period amid a continuously challenging domestic

watch consumer market the Company achieved an operating revenue of 3508487911.40 yuan a year-on-year

decrease of 10.96%. The total profit was 120103837.72 yuan a year-on-year decrease of 58.02%. The Company

focused on refined management quality improvement and cost reduction maintaining stable cash flow from operating

activities and keeping operational risks under control. Facing market challenges the Company remains confident in its

development and values shareholder returns. It has now formulated the 2025 cash dividend plan proposing to

distribute a cash dividend of 1.20 yuan (tax included) per 10 shares to all shareholders.During the reporting period the company’s key operational initiatives are as follows:

(I) Strengthening Brand Positioning and Enhancing Competitive Advantage through "Aviation Heritage +

Chinese Culture"

During the reporting period adhering to its positioning as a "high-quality Chinese watch brand with aerospace-

themed timepieces as its hallmark" the "FIYTA" brand focused on its aviation heritage and delved deeper into its

brand essence. It launched aerospace-themed products such as the "Y-20" Fortune Edition the "Small Spacecraft" 3D

Time Reading Edition and the "J-10" Crossover Edition. Through innovations in craftsmanship and materials the

2Summary of 2025 Annual Report of FIYTA Precision Technology Co. Ltd.

brand integrated elements of Eastern aesthetics into product design introducing new collections such as the "Little

Gold Watch" Butterfly Fortune Edition the "Shishi Ruyi" Song Porcelain Edition and the "Oriental Beauty" Su

Embroidery Edition. By deeply blending "Chinese design Chinese storytelling and Chinese craftsmanship" the brand

established differentiated product features. Collaborations with fashion brands at Shanghai and Paris Fashion Weeks

as well as marketing campaigns around high-impact events such as the launches of "Shenzhou-20" and "Shenzhou-

21" Gao Yuanyuan’s livestream on Oriental Selection and the commissioning of the "Fujian Aircraft Carrier" helped

build a brand communication matrix spanning fashion technology and culture enhancing brand visibility and influence.(II) Continuously Optimizing Channel Structure and Operating Systems to Promote Online-Offline Synergy

During the reporting period the "FIYTA" brand further developed its offline proprietary channels. Through member

operations new media engagement and in-store livestreaming its self-operated stores enhanced refined operational

capabilities. Online leveraging the trend of women’s watches as fashion accessories the brand strengthened its hit

product strategy achieving growth against market trends during major promotional campaigns such as "618" and

"Double 11" with multiple products ranking high in sub-categories of major e-commerce platforms’ watch sections. By

building a distinctive livestreaming matrix and strengthening omni-channel marketing capabilities the brand effectively

promoted synergy between online and offline channels increasing its market share in the domestic watch segment."Harmony" continued to optimize its brand and channel structure focusing on leading brands and core channels

while steadily advancing the integration of brand and channel resources and optimizing their layout. Through deep

cultivation of store operations and customer service and the implementation of a refined "one store one strategy"

operational approach it gained high recognition from partner brands and strong customer satisfaction.(III) Increasing Investment in Precision Technology Business to Accelerate Strategic Transformation and

Upgrading

During the reporting period the company’s watch business increased R&D investment in the development of in-

house movements key components and the application of aerospace materials. Through the development of new

processes equipment upgrades and the recruitment of key talent the company strengthened its technological

foundation enhanced capabilities in product R&D precision manufacturing and customer service and actively

expanded into new markets and client segments. The company plans to acquire a controlling stake in Shaanxi

Changkong Gear Co. Ltd. to enter the precision gear and precision reducer business sectors thereby strengthening

the technological capabilities and industrial layout of its precision technology business and driving strategic

transformation and upgrading.(IV) Advancing Digital Implementation and Strengthening the Application and Empowerment of Digital

Platforms

During the reporting period the company focused on key areas such as digital retail and operational management

promoting the integration and scenario-based application of platforms such as the digital retail system CRM system

and SAP system. It optimized management systems for manufacturing finance and operations and launched tools

such as Excellent Digital Assistant to enhance operational efficiency.

3. Key Accounting Data and Financial Indicators

(1) Key accounting data and financial indicators for the last three years

Whether the Company needs to retroactively adjust or restate its accounting data of previous years

No

Unit: yuan

Year-end-on-year-

End of 2025 End of 2024 End of 2023

end change

3Summary of 2025 Annual Report of FIYTA Precision Technology Co. Ltd.

Total assets 3733401610.34 4007690717.02 -6.84% 4204260897.08

Net assets

attributable to

3336540162.453391843200.61-1.63%3333805752.19

shareholders of the

listed company

2025 2024 Year-on-year change 2023

Operating revenue 3508487911.40 3940530934.07 -10.96% 4569690002.99

Net profit attributable

to shareholders of 87317829.63 220350184.99 -60.37% 333178102.37

the listed company

Net profit attributable

to shareholders of

the listed company

83179863.25208728288.68-60.15%316806208.13

after deducting non-

recurring gains and

losses

Net cash flow from

541872287.53536730960.290.96%632401487.98

operating activities

Basic earnings per

0.21530.5385-60.02%0.8082

share (yuan/share)

Diluted earnings per

0.21520.5378-59.99%0.8075

share (yuan/share)

Weighted average

2.60%6.55%-3.95%10.28%

return on equity

(2) Key accounting data by quarter

Unit: yuan

First quarter Second quarter Third quarter Fourth quarter

Operating revenue 924208353.87 859923583.36 890827959.90 833528014.27

Net profit attributable

to shareholders of 45306381.34 37139118.69 42572778.28 -37700448.68

the listed company

Net profit attributable

to shareholders of

the listed company

44139266.9134237995.2841360520.65-36557919.59

after deducting non-

recurring gains and

losses

Net cash flow from

83070547.91168420259.16122431591.49167949888.97

operating activities

Whether there are any material differences between the above financial indicators or their aggregates and the relevant

financial indicators in the Company's previously disclosed quarterly and semi-annual reports

No

4Summary of 2025 Annual Report of FIYTA Precision Technology Co. Ltd.

4. Share Capital and Shareholders

(1) Number of common shareholders and preferred shareholders with restored voting rights and

shareholdings of the top 10 shareholders

Unit: share

Total number of

Total number preferred

Total number of

of preferred shareholders

Total number of common

shareholders with restored

common shareholders at

with restored voting rights at

shareholders at the 34494 the end of the 34475 0 0

voting rights at the end of the

end of the month prior to

the end of the month prior to

reporting period the disclosure of

reporting the disclosure of

the annual report

period the annual

report

Shareholdings of the top 10 shareholders (excluding shares lent through securities refinancing)

Shareholdi Number of Pledge mark or freeze

Shareholde ng Number of shares held status

Shareholder name

r nature percentag shares held with restrictions Share

e on sale Quantitystatus

State-

Shentian Technology

owned Not

Holdings (Shenzhen) Co. 40.17% 162977327 0 0

legal applicable

Ltd.person

Domestic

Not

#Wu Jilin natural 4.15% 16851926 0 0

applicable

person

Qianhai Life Insurance Co.Not

Ltd. - Participating Others 3.99% 16186370 0 0

applicable

Insurance Product

Domestic

Not

#Zhu Rui natural 0.52% 2096600 0 0

applicable

person

China Merchants Bank

Co. Ltd. - Orient Red Not

Others 0.45% 1838100 0 0

Vision Value Hybrid applicable

Securities Investment Fund

Domestic

Not

#Wang Xing natural 0.45% 1820300 0 0

applicable

person

Overseas

Hong Kong Securities Not

legal 0.39% 1563501 0 0

Clearing Company Limited applicable

person

Bank of Communications -

Not

HuaAn Innovation Others 0.34% 1374700 0 0

applicable

Securities Investment Fund

Domestic

Not

Chen Fang natural 0.32% 1290500 0 0

applicable

person

Bank of China Limited -

Huashang Selected Return Not

Others 0.31% 1264300 0 0

Hybrid Securities applicable

Investment Fund

Explanation of related party relationships The Company is not aware of any related party relationships or concerted

5Summary of 2025 Annual Report of FIYTA Precision Technology Co. Ltd.

or concerted action among the above action among the top 10 shareholders mentioned above.shareholders

1. In addition to holding 4130504 shares through a regular securities

account the Company's shareholder Wu Jilin also holds 12721422

shares through a client credit trading collateral securities account with

China CICC Wealth Management Securities Company Limited holding a

total of 16851926 shares;

Explanation of shareholders' participation 2. In addition to holding 2600 shares through a regular securities

in margin financing and securities lending account the Company's shareholder Zhu Rui also holds 2094000

business (if any) shares through a client credit trading collateral securities account with

First Capital Securities Co. Ltd. holding a total of 2096600 shares;

3. In addition to holding 1330300 shares through a regular securities

account the Company's shareholder Wang Xing also holds 490000

shares through a client credit trading collateral securities account with

China Merchants Securities Co. Ltd. holding a total of 1820300 shares.Share lending through securities refinancing by shareholders holding over 5% of shares the top 10 shareholders and

the top 10 non-restricted shareholders

Not applicable

Changes in the top 10 shareholders and the top 10 non-restricted shareholders compared to the previous period due

to lending/return of shares through securities refinancing

Not applicable

(2) Total number of the Company's preferred shareholders and shareholdings of the top 10 preferred

shareholders

Not applicable

(3) Block diagram illustrating the ownership and control relationship between the Company and its actual

controller

5. Bonds outstanding as of the date of approval of the annual report

Not applicable

6Summary of 2025 Annual Report of FIYTA Precision Technology Co. Ltd.

III. Significant Matters

(I) Proposed equity acquisition and related-party transaction

As reviewed and approved at the seventh meeting of the 11th Board of Directors the Company signed an "Equity

Acquisition Intention Agreement" with Hanzhong Hanhang Electromechanical Co. Ltd. on June 4 2025. The Company

intends to acquire all or part of the controlling stake in Shaanxi Changkong Gear Co. Ltd. in cash. This acquisition

constitutes a related-party transaction and based on preliminary estimates it is not expected to constitute a major

asset restructuring. For details please refer to the "Announcement on Signing an Equity Acquisition Intention

Agreement and Related-Party Transaction 2025-018" "Progress Announcement on the Proposed Acquisition of Equity

in Shaanxi Changkong Gear Co. Ltd. and Related-Party Transaction 2025-022" and "Progress Announcement on the

Proposed Acquisition of Equity in Shaanxi Changkong Gear Co. Ltd. and Related-Party Transaction 2026-005"

disclosed by the Company on Cninfo on June 5 2025 July 12 2025 and February 26 2026 respectively.As of the disclosure date of this report all parties to the transaction are advancing the audit valuation and state-

owned asset valuation filing related to this acquisition. The final transaction plan has not yet been determined and is

still subject to the necessary decision-making and approval procedures by all parties. There remains uncertainty as to

whether this acquisition can be ultimately completed.(II) Revision of the Articles of Association and other regulations

As reviewed and approved at the eighth meeting of the 11th Board of Directors and the first extraordinary general

meeting of 2025 the Company has revised certain clauses of the Articles of Association the Rules of Procedure for

Shareholders' Meetings and the Rules of Procedure for the Board of Directors. These revisions were made in

accordance with relevant regulations including the Company Law the Arrangements for the Transitional Period for the

Implementation of Supporting Systems and Rules for the New Company Law the Guidelines for the Articles of

Association of Listed Companies and the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange

and were based on the Company's actual situation. For details please refer to the relevant announcements disclosed

by the Company on Cninfo on August 23 2025 and September 10 2025 respectively.FIYTA Precision Technology Co. Ltd.The Board of Directors

March 14 2026

7