FIYTA Precision Technology Co. Ltd. 2022 Annual Report Summary

Stock Code: 000026;200026 Abbreviation of the Stock: FIYTA;FIYTA B Announcement No.: 2023-009

FIYTA Precision Technology Co. Ltd.2022 Annual Report Summary

I. Important Notice

This summary of the Annual Report is quoted out of the full text of the Annual Report. Investors desirous to understand

entirely the Company's operation results financial position and future development planning are advised to carefully read

the full text of the Annual Report which is published in the medium designated by CSRC.All the directors attended the board meeting for reviewing the Annual Report.Indication of qualified audit opinion

Inapplicable

The profit distribution preplan or the preplan for conversion of reserve into capital for the reporting period reviewed by the

Board of Directors

Is there any public reserve converted into capital stock

No

Reviewed and approved by the Board of Directors the Company's profit distribution preplan is summarized as follows:

based on the total share capital as at the date of record (with the shares in the special securities account for repurchase

deducted) when the profit distribution plan is implemented in the future the Company is going to distribute dividend to all

the shareholders at the rate of CNY2.50 for every 10 shares (with the tax inclusive) 0 bonus shares (with the tax

inclusive)and no public reserve shall be converted into share capital.Profit Distribution Preplan for Preferred Shares during the Reporting Period Approved by the Resolution of the Board of

Directors

Inapplicable

II. Company Profile

1. Company Information

Short form of the stock: FIYTA and FIYTA B Stock 000026 and 200026

1FIYTA Precision Technology Co. Ltd. 2022 Annual Report Summary

Code

Stock Exchange Listed with Shenzhen Stock Exchange

Stock abbreviation before

None

change (if any)

Liaison Persons and

Secretary of the Board Securities Affairs Representative

Communication Information

Names Song Yaoming Xiong Yaojia

20th Floor FIYTA Technology Building 18th Floor FIYTA Technology Building

Office Address Gaoxin S. Road One Nanshan District Gaoxin S. Road One Nanshan District

Shenzhen Shenzhen

Fax 0755-83348369 0755-83348369

Tel. 0755-86013669 0755-86013669

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

2. Summary of the Principal Business or Leading Products during the Reporting Period

(1) Principal Business

The Company bases its establishment and development on the aviation precision technology and material technologyhas been adhering to the values of “the leading role of brand customer orientation value creation cooperation andresponsibility learning and innovation" taking “inheriting of the spirit of aeronautical patriotism and creating a quality life”as its mission focusing on the watch industry; the core watch business has formed the business layout of “Brand +Channel” which consists of the self-owned brand and retails of world brand watches. In addition the Company is actively

exploring and cultivating new businesses such as precision technology and smart wears which are in the stage of

continuous development.The Company is deeply involved in the construction of professional watchmaking capabilities and brand operations has

a number of self-owned brands such as "Fiyta" "Emile Chouriet" "Beijing" and "Jeep" covering different dimensions of

mid-to-high-end popular professional fashion and cool and so on. Of them the core self-owned brand of "FIYTA" is

positioned as "a high-quality Chinese watch brand with aerospace watch as its characteristic". Relying on technology and

quality advantages the Company has continuously provided professional chronograph watches for China's aerospace

industry. Through the idea of taking “the nation” as the core and "fashion" as the form the Company has developed

differentiated products which match the "aerospace quality" carried out integrated marketing continuously expanded

brand influence and gradually established its leading position in the domestic industry.In order to seize the opportunities in the domestic brand watch market promote the long-term development of its own

brands and expand the retail business of "Harmony" world brand watches "Harmony" is committed to "becoming the

best comprehensive service provider of famous watches" and has long-term and in-depth cooperation with many famous

watch groups and brands; Relying on its industry-leading operation management capabilities and customer service

capabilities it shall gradually become a professional high-end chain commercial brands of famous watches.In recent years the Company has relied on high-end precision manufacturing technology and industrial accumulationbased on the development principle of “technology being homologous the industry being same-rooted and value beingco-directional” and extended the development of precision technology business and smart wears business. At present

these two businesses have begun to take shape.

(2) About the Industry the Company Engaged in

The watch industry the Company is engaged in has a long history and profound cultural precipitation and is one of the

representative industries of high-precision manufacturing with the nature of precision technology. The domestic watch

industry closely follows the national light industry modernization progress and is flourishing with the Chinese national

craftsmanship and self-improvement culture. According to the strategic deployment of the 20th National Congress of the

Communist Party of China and the "Guiding Opinions on the High-quality Development of Light Industry in the 14th Five-

Year Plan" promulgated by the China Light Industry Federation light industry as an important consumer goods industry

undertakes the mission of providing high-quality consumer products for the people among which watches because of

their multiple attributes of function and art integrate a variety of needs of the new consumption era such as emotional

value and aesthetic experience and gradually develop in the direction of quality fashion and personalization so as to

continuously meet the increasingly upgraded consumption needs of consumers.With the improvement of national purchasing power and the growth of consumer demand the overall scale of China's

consumer market has continued to expand ranking the second in the world. The domestic watch consumer market has

also continued to grow at a compound growth rate of about 5% in the past five years. At present under the guidance of

relevant national policies such as "dual circulation" and "common prosperity" the middle-income group as the target

consumer group of watches continues to expand and is stimulating the consumption growth of urban clusters and

2FIYTA Precision Technology Co. Ltd. 2022 Annual Report Summary

infiltrating the consumption demand of second- and third-tier cities. With the comprehensive release of travel policies the

offline passenger flow is gradually restored and the watch consumption market is expected to continue to maintain the

growth trend.However the rapidly growing domestic watch consumption market also shows significant differentiation. On the one hand

with the differentiation of price ranges watches in the middle and high-end price ranges present double growth trend in

both amount and quantity. The compound growth rate of the amount of Swiss watches exported to Chinese Mainland in

the past five years has exceeded 10% significantly higher than the market average. As a whole domestic watch brands

in the middle and low-end price ranges are facing greater pressure. On the other hand with the differentiation of the

competition pattern the head brand or channel is promoting M & A and integration in the industry and accelerating the

expansion of market share and further enhancing the concentration ratio relying on its competition advantages in scale

operation management resources integration and so on. The increasingly intensified challenge is forcing watch brands

especially domestic watch brands to to make continuous efforts to improve the price range and market share of the

brands and some domestic watch brands are rising after fierce competition.The Company has had long-term prospects on watch industry has been continuously cultivating and investing in thecore businesses of "FIYTA" the own brand and "Harmony” world watch retails constantly consolidating the "brand power

product power and channel power" and has been enjoying a good market share and industry position foundation. At

present in the face of the opportunities and challenges embodied in the watch consumption market the Company shall

as always maintain a positive attitude take customer needs as the guide adhere to the principle of high-qualitydevelopment and promote the “FIYTA" the self-owned brand to develop in the direction of high quality anddifferentiation. "HARMONY" world watch retail is developing towards professionalization and benchmarking of operations

and services; at the same time shall continue to promote digital transformation and upgrading and further integrate

digital concepts and technologies into R&D design manufacturing sales services and other links in order to build its

digital ability to use data to empower value creation.

3. Summary of Accounting/Financial Data

(1) Summary of Accounting/Financial Data in the Past Three Years

Does the Company need to make retroactive adjustment or restatement of the accounting data of the previous years

No

In CNY

Increase/decrease of the

end of the reporting year

End of 2022 End of 2021 End of 2020

over the end of the

previous year

Total assets 4117143911.99. 4110579952.49 0.16% 4018712700.18

Net profit attributable to the

3136423492.153013232642.534.09%2799948388.09

Company’s shareholders

Increase/decrease in the

2022 2021 reporting year over the 2020

previous year

Operating revenue 4354096880.36 5243733540.93 -16.97% 4243439952.59

Net profit attributable to the

266681451.84387840282.95-31.24%294115156.04

Company’s shareholders

Net profit less the non-

recurring profit/loss

249791455.73369418754.83-32.38%269095012.41

attributable to the

Company’s shareholders

Net cash flows arising from

476228776.52547249108.45-12.98%378210505.87

operating activities

Basic earning per share

0.63980.9036-29.19%0.6764

(CNY/share)

Diluted earning per share 0.6398 0.9036 -29.19% 0.6764

3FIYTA Precision Technology Co. Ltd. 2022 Annual Report Summary

(CNY/share)

Return on equity weighted

8.68%13.39%-4.71%10.78%

average (%)

(2) Major Accounting Data Based on Quarters

In CNY

The first quarter The second quarter The third quarter The fourth quarter

Operation Revenue 1173700720.94 1009870028.17 1201863621.73 968662509.52

Net profit attributable to

the Company’s 86354073.76 54338710.53 89108590.17 36880077.38

shareholders

Net profit less the non-

recurring profit/loss

84104404.0645827352.8486658935.5833200763.25

attributable to the

Company’s shareholders

Net cash flows arising

16020422.02262365841.58122195340.1875647172.74

from operating activities

Are the above financial indicators or their totals significantly different from the financial indicators disclosed by the

Company in the quarterly and semi-annual reports?

No

4. Capital Stock and Shareholders

(1) Number of the common shareholders and preferred shareholders whose voting rights are restored and

shareholding by the top 10 shareholders

In shares

Total

Total

common

Total preference

shareholder Total preference

common shareholder

s at the end shareholders with the voting

shareholder s with the

of the month power recovered at the end

s at the end 31527 36789 voting power 0 0

before the of the month before the day

of the recovered at

date of of disclosing the Annual

reporting the end of

disclosing Report

period the reporting

the Annual

period

Report

Shareholding by top 10 shareholders

Names of Pledging marking or

Nature of

the Shareholdin Number of the restricted freezing

the Number of shares held

Shareholder g proportion shares held Status of the

shareholder Quantity

s shares

AVIC

International State

39.02%1629773270

Holding corporate

Limited

Domestic

# Wu Jilin natural 4.30% 17945614 0

person

4FIYTA Precision Technology Co. Ltd. 2022 Annual Report Summary

Domestic

# Xu

natural 1.26% 5264768 0

Guoliang

person

Domestic

Qiu Hong natural 0.57% 2370000 0

person

Domestic

#Zhu Rui natural 0.41% 1702600 0

person

Domestic

Li Shuyuan natural 0.33% 1377600 0

person

Domestic

# Qu Yongjie natural 0.30% 1266800 0

person

Domestic

# Zhang

natural 0.29% 1228200 0

Mingrong

person

Domestic

Lu Shaowen natural 0.28% 1166100 0

person

Domestic

Chen Hao natural 0.26% 1088943 0

person

Explanation on associated

relationship or consistent

The Company has no idea on whether the above 10 shareholders are associated or are acting in concert.action of the above

shareholders

1. In addition to the 11221862 shares held through the ordinary securities account Wu Jilin one of the

shareholders of the Company also holds 6723752 shares through the credit transaction guarantee

securities account. Therefore Wu Jilin is actually holding 17945614 shares;

2. In addition to the 4604568 shares held through the ordinary securities account Xu Guoliang one of the

shareholders of the Company also holds 660200 shares through the credit transaction guarantee securities

account. Therefore Xu Guoliang is actually holding 5264768 shares;

3. In addition to the 107900 shares held through the ordinary securities account Zhu Rui one of the

Note the shareholders

shareholders of the Company also holds 1594700 shares through the credit transaction guarantee

involved in margin financing

securities account. Therefore Zhu Rui is actually holding 1702600 shares;

& securities lending (if any)

4. In addition to the 22800 shares held through the ordinary securities account Qu Yongjie one of the

shareholders of the Company also holds 1244000 shares through the credit transaction guarantee

securities account. Therefore Qu Yongjie is actually holding 1266800 shares;

5. In addition to the 0 shares held through the ordinary securities account Zhang Mingrong one of the

shareholders of the Company also holds 1228200 shares through the credit transaction guarantee

securities account. Therefore Zhang Mingrong is actually holding 1228200 shares.

2. Total Preference Shareholders and the Shareholding by the Top 10 Preference Shareholders

Inapplicable

(3) Block Diagram of the Ownership and Control Relations between the Company and the Actual Controller

5FIYTA Precision Technology Co. Ltd. 2022 Annual Report Summary

5. Status of Bonds Existing on the Date of Approval of the Annual Report

Inapplicable

III. Significant Events

1. About the Amendment of the Articles of Association

Reviewed and approved at the 7th session of the Tenth Board of Directors and 2021 Annual General Meeting the

Company decided to revise partial articles of the Articles of Association of the Company according to the law and

regulations. For detail please refer to the “Plan for Revising the Articles of Association” and “Announcement on theResolution of 2021 Annual General Meeting 2022-026 disclosed by the Company on http://www.cninfo.com.cn/ on April

23 2022 and May 14 2022 respectively.

Reviewed and approved at the 10th session of the Tenth Board of Directors the Company based on the authorization of

2019 1st Extraordinary General Meeting 2021 1st Extraordinary General Meeting and 2021 5th Extraordinary General

Meeting revised partial articles of the "Articles of Association" . For details please refer to the Proposal for theAmendment of the Articles of Association and the “Announcement on the Resolution of the 7th Session of the TenthBoard of Directors 2022-046” disclosed by the Company on http://www.cninfo.com.cn/ on December 21 2022.

2. Repurchase of Partial Domestically Listed Foreign Investment Shares (B-Shares)

The Company’s 2nd Session of the Tenth Board of Directors and the 5th Extraordinary General Meeting reviewed andapproved the “Proposal on Repurchase of Partial Domestically Listed Foreign Shares (B- Shares) and subsequentlydisclosed the repurchase report and series of progress announcements in accordance with relevant regulations. Ended

6FIYTA Precision Technology Co. Ltd. 2022 Annual Report Summary

November 29 2022 the repurchase of the shares was finished in implementation and the relevant shares had beencanceled. For the detail please refer to the “Announcement on the Expiration and the Implementation Result of theRepurchase of Partial Domestically Listed Foreign Investment Shares (B-Shares) 2022-044”and the “Announcement ofCompletion of the Cancellation of Partial Domestically Listed Foreign Investment Shares (B-Shares) as Repurchased and

Change of the Company’s Shares 2022-045 disclosed in the Securities Times Hong Kong Commercial Daily and

http://www.cninfo.com.cn respectively on November 30 2022 and December 17 2022.FIYTA Precision Technology Co. Ltd.Board of Directors

March 18 2023

7