2024 Annual Report Summary

of FIYTA Precision Technology Co. Ltd.Stock Code: 000026;200026 Abbreviation of the Stock: FIYTA;FIYTA B Announcement No.: 2025-007

FIYTA Precision Technology Co. Ltd.2024 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 on the equity registration date when the profit distribution plan is implemented cash dividends of RMB 4.00

(including tax) will be distributed to all shareholders for every 10 shares without bonus share (including tax) and surplus funds will

not be converted into additional capital.Profit Distribution Preplan for Preferred Shares during the Reporting Period Approved by the Resolution of the Board of Directors

Inapplicable

This report is prepared in both Chinese and English versions. If there is any ambiguity in understanding the report the Chinese

version shall prevail.

12024 Annual Report Summary

of FIYTA Precision Technology Co. Ltd.II. Company Profile

1. Company Information

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

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) Industry status during the reporting period

In 2024 according to the data of the National Bureau of Statistics the total retail sales of domestic consumer goods increased by

3.5% year-on-year the total consumer market grew steadily but differentiated significantly and the traditional watch consumer

market faced multiple pressures such as demand contraction and intensified competition.In terms of consumption structure luxury goods and optional consumption continue to be under pressure while experiential

consumption such as health and technology is on the rise. Bain's report indicated that the sales of personal luxury goods in mainland

China fell by 18%-20% year-on-year among which the watch category was significantly affected by consumption outflow (the

proportion of overseas consumption rose to 40%) and preference shift. Data from the Federation of the Swiss Watch Industry showed

that the export value of Swiss watches to mainland China fell by 25.8% year-on-year throughout the year and sales of watches in

various price ranges declined to varying degrees; Meanwhile the PwC report revealed that the demand for sports equipment and

health monitoring equipment is rising and IDC data showed that the shipments of wrist-worn devices (including smart watches and

bracelets) in China increased by 20.1% YoY in the first three quarters of this year ranking first in the world.In terms of consumption channels fragmentation of offline channels has intensified with discount stores and immersive

experience stores becoming the main growth drivers while customer traffic to traditional department stores and specialty stores has

declined; The penetration rate of online channels has stabilized and the proportion of refined operation modes such as livestream e-

commerce and member private domains has increased.In terms of consumption preferences young consumers are less loyal to brands and they are more concerned about cost-

effectiveness and consumption experience. Proactive healthcare technological interaction dedicated services and other models are

more popular.In this context the Company will insist on its own brand positioning strengthen brand building and differentiation and enhance

the core competitiveness of traditional watch business; consolidate channel operation management optimize store structure and form

mode and actively deploy high-quality and incremental channels. By emphasizing the customer orientation the Company will

increase AI and other technical empowerment and digital applications and continue to deepen customer research; anchor the

22024 Annual Report Summary

of FIYTA Precision Technology Co. Ltd.transformation and upgrading goals enhance the core technology capabilities of precision technology and smart wearable and

actively promote the expansion of related new industries so as to cope with market changes.

(2) Analysis of Core Business

In 2024 the Company adhering to seeking progress while maintaining stability strengthened and expanded the main business of

watches to improve core competitiveness and focused on scientific and technological innovation accelerated transformation and

upgrading enhanced core functions deepened quality and efficiency improvement prevented asset risks identified operation

counterattack points and carried out various operation and management work in an orderly manner. During the reporting period in

the environment of continuous pressure on the watch consumer market the Company achieved operating income of RMB 3940.53

million yuan a YoY decrease of 13.77% with the total profit of RMB 286.11 million yuan down 34.53% YoY. The Company paid

close attention to lean operation and risk prevention and control. At the end of the period the asset-liability ratio was 15.37% and the

net cash flow from business activities was RMB 537 million yuan indicating high operating efficiency and controllable operating

risks. Moreover the Company consolidated confidence in development and attached importance to shareholder returns. It has

implemented the cash dividend plan in 2023 and the domestic listed foreign shares (B shares) share repurchase and cancellation plan

(Phase IV) and has formulated a cash dividend plan in 2024 to pay cash dividends of 4.00 yuan (tax included) to all shareholders

for every 10 shares.During the reporting period the Company's main business initiatives are as follows:

(I) Firmly promote the implementation of brand positioning upgrade strategy and spread aviation and Chinese culture

During the reporting period the aerospace product matrix was optimized continuously by positioning "FIYTA" brand as a "high-

quality Chinese watch brand featuring aerospace watch" and a three-dimensional product layout was implemented in combination

with aerospace characteristic IP. The integration with intangible cultural heritage was strengthened by incorporating traditional

intangible cultural heritage crafts such as Song porcelain and mother-of-pearl inlay into product design so as to showcase China's

excellent traditional culture. The IP cooperation with "Y-20 Transport Aircraft" CNNC and other "Pillars of a Great Power" was

deepened and the brand was frequently exposed through Milan Fashion Week cooperation with Xia Zhiguang "Shenzhou-18"

"Shenzhou-19" Zhuhai International Aviation & Aerospace Exhibition Nasdaq large screen display and other brand events.(II) Continue to promote the optimization of channel structure and improve to the efficiency of operation and

management

During the reporting period for the "FIYTA" brand the focus was on building offline core stores and taking aerospace theme

stores as the starting point to actively deploy high-quality channels such as mainstream shopping malls and promote the

transformation of business models. The efficiency of self-owned stores and customer was improved through the "Little Red Book +

TikTok Store Livestream + Local Life" model. By strengthening the development of new products online and the construction of self-

operated livestream matrix during the "618" period the e-commerce GMV achieved contrarian growth ranking first in the turnover

of domestic watches in the whole network. Adhering to the integration of product and sales the Company carried out global

marketing and made the popular "small gold watch" enter the TOP list of major platforms helping the brand to significantly increase

its share in mainstream e-commerce platforms. Meanwhile the Company actively expanded overseas channels and duty-free

channels to develop incremental markets."Harmony" actively expanded cooperation with medium and high-end brands developed offline channels with high quality and

steadily promoted the integrated development of online and offline channels; Deepen and refine excellent operation in an all-round

way and systematically improve operational efficiency from online offline stores brands members services and other dimensions.(III) Continue to increase investment in scientific and technological innovation and strengthen the strength of precision

technology

32024 Annual Report Summary

of FIYTA Precision Technology Co. Ltd.During the reporting period the Company's self-developed automatic mechanical movement "Zhaixin" became the first female

aerospace watch movement certified by the French Besan?on Observatory. The Company actively promoted the large-scale

commercial use of the self-developed movement the product application of high-level mechanical movements such as the tourbillon

the development of key parts such as clamps and hairsprings and the development and application of aerospace materials and

precision timing technology.(IV) Continue to promote digital transformation and deepen digital platform application

During the reporting period the Company continued to carry out digital operations improving and iterating the digital retail

system; Focusing on customer needs and profiles optimized the member life cycle model to enhance core metrics such as conversion

of potential customers and retention of existing customers ensuring continuous improvement. Deepening the private domain

operations leveraged mini-programs to cultivate private domain traffic and develop activities like private domain group purchases.(V) Continue to promote the exploration of new businesses and actively cultivate strategic emerging industries

During the reporting period the Company strengthened its precision technology business enhancing its technical capabilities to

meet the demands of complex and high-precision products driving the expansion of new customers. The smart wearable business

continued to advance with upgrades in product and technological capabilities. There was a strong emphasis on enhancing both

software and hardware technologies along with new product development. Under the "Jeep" brand new products such as the curved

screen square smartwatch integrating AI technology were launched achieving the increased revenue during the reporting period.

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 or decrease at

the end of the current

As at the end of

As at the end of 2024 year compared with the As at the end of 2022

2023

end of the previous

year

Total assets (yuan) 4007690717.02 4204260897.08 -4.68% 4117143911.99

Net assets attributable to

shareholders of the listed 3391843200.61 3333805752.19 1.74% 3136423492.15

company (yuan)

Increase or decrease

202420232022

YoY

Operating income (yuan) 3940530934.07 4569690002.99 -13.77% 4354096880.36

Net profit attributable to

shareholders of the listed 220350184.99 333178102.37 -33.86% 266681451.84

company (yuan)

Net profit after deducting

non-recurring profits and

losses attributable to 208728288.68 316806208.13 -34.11% 249791455.73

shareholders of the listed

company (yuan)

Net cash flows from

536730960.29632401487.98-15.13%476228776.52

operating activities (yuan)

42024 Annual Report Summary

of FIYTA Precision Technology Co. Ltd.Basic earnings per share

0.53850.8082-33.37%0.6398

(yuan/share)

Diluted earnings per share

0.53780.8075-33.40%0.6398

(yuan/share)

Return on weighted

6.55%10.28%-3.73%8.68%

average net assets

(2) Major Accounting Data Based on Quarters

In CNY

Q1 Q2 Q3 Q4

Operating revenue 1065150876.00 1011247035.32 963368988.81 900764033.94

Net profit attributable

to shareholders of the 75499096.30 71639386.04 50484466.22 22727236.43

listed company

Net profit after

deducting non-

recurring profits and

69755955.8870689265.9350362069.3417920997.53

losses attributable to

shareholders of the

listed company

Net cash flows from

-964281.20137495077.72180837164.86219362998.91

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

number of

ordinary

sharehold

Total number Total number of Total number of preferred

ers at the

of ordinary preferred shareholders whose voting rights

end of the

shareholders shareholders whose have been restored at the end of

latest

as at the end 26316 25508 voting rights have 0 the previous month prior to the 0

month

of the been restored at the disclosure date of the annual

before the

reporting end of the reporting report (if any)

date of

period period (if any)

disclosure

of the

annual

report

Shareholders holding more than 5% stock or the top 10 stock shareholders' shareholding details (excluding shares lent through

refinancing)

52024 Annual Report Summary

of FIYTA Precision Technology Co. Ltd.Pledged tagged or

Shareholding Number of shares frozen Shareholder' Number of restrictive

Nature held at the end of the

s name Ratio stocks held reporting period Num

Status

ber

AVIC

International State-owned Not

40.17%16297732700

Holding legal person applicable

Limited

Domestic

Not

# Wu Jilin natural 4.43% 17972441 0 0

applicable

person

Domestic

Not

Xu Guoliang natural 1.39% 5659968 0 0

applicable

person

Domestic

Not

Qiu Hong natural 0.62% 2510000 0 0

applicable

person

Domestic

Not

#Zhu Rui natural 0.53% 2149400 0 0

applicable

person

604 Portfolio

of National

Not

Social Others 0.41% 1676300 0 0

applicable

Security

Fund

SWS MU

Fund - China

Everbright

Bank - SWS

MU

Not

Changhong Others 0.41% 1658000 0 0

applicable

No. 1

Collective

Asset

Management

Plan

Industrial

and

Commercial

Bank of

China

Limited - GF

ZZGX Not Others 0.36% 1457500 0 0

Central applicable

Government-

owned

Enterprise

Shareholder

Return

Trading

62024 Annual Report Summary

of FIYTA Precision Technology Co. Ltd.Open-Ended

Index

Securities

Investment

Fund

Domestic

Not

#Wang Xing natural 0.34% 1387800 0 0

applicable

person

Domestic

Not

#Qu Yongjie natural 0.31% 1271900 0 0

applicable

person

Notes to shareholders' related

relationship or persons acting The Company does not know whether the above 10 shareholders are related or act in concert.in concert

Description of the above The shareholder AVIC International Holdings Limited authorized a representative to exercise

shareholders' involvement in voting rights on behalf of the Company at the 2023 annual general meeting of shareholders the

the commissioned/entrusted 1st extraordinary general meeting in 2024 and the 2nd extraordinary general meeting in 2024

voting rights and waiver of representing 162977327 shares. For details of the voting results please refer to the relevant

voting rights announcements issued by the Company on the CNINFO website.Participation of shareholders holding more than 5% of the shares top ten shareholders and top ten shareholders with unlimited

tradable shares in the lending of shares through the refinancing business

Not applicable

The top ten shareholders and the top ten shareholders with unlimited tradable shares have changed compared to the previous period

due to the reasons of refinancing lending and repayment

Not applicable

(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

Block diagram of property rights and control relationship between the Company and the actual controller

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

Inapplicable

72024 Annual Report Summary

of FIYTA Precision Technology Co. Ltd.III. Significant Events

(I) Repurchase of a portion of domestic listed foreign shares (B-shares)

The Company's 11th meeting of the 10th Board of Directors and the 2022 Annual General Meeting of Shareholders approved the Plan

for the Repurchase of a Portion of Domestic Listed Foreign Shares (B-shares) and subsequently disclosed the repurchase report and a

series of progress announcements in accordance with relevant regulations. As of April 25 2024 the implementation of the repurchase

plan has been completed and the repurchased 9355763 B-shares have been canceled on May 10 2024. For detailed information

please refer to the company's announcements "Announcement on the Expiration and Implementation Results of the Repurchase of

Certain Domestically Listed Foreign Shares (B Shares) 2024-020" and "Announcement on the Completion of the Cancellation of

Repurchased Domestically Listed Foreign Shares (B Shares) and Share Changes 2024-021" disclosed on CNINFO on April 26 2024

and May 14 2024 respectively.(II) General election of the Board of Directors and the Board of Supervisors and appointment of senior officers

Upon the deliberation and approval at the 20th meeting of the 10th Board of Directors the 18th meeting of the 10th Board of

Supervisors and the 2nd Extraordinary General Meeting in 2024 the Company elected the directors of the 11th Board of Directors

and the shareholder representative supervisors of the 11 th Board of Supervisors; Upon the deliberation and approval at the 5th

Congress of Workers and Staff of the 5th Session the Company elected the employee representative supervisor of the 11th Board of

Supervisors. For details please refer to the Announcement on the General Election of the Board of Directors 2024-027 the

Announcement on the General Election of the Board of Supervisors 2024-028 and the Announcement on the General Election of

Employee Representative Supervisors 2024-033 disclosed by the Company on August 21 and August 27 2024 on the CNINFO

website.Upon the deliberation and approval at the first meeting of the 11th Board of Directors and the first meeting of the 11 th Board of

Supervisors the Company completed the election of the chairman of the Board of Directors the appointment of senior officers and

the election of chairman of the Board of Supervisors. For details please refer to the Announcement on the Completion of General

Election of the Board of Directors and the Board of Supervisors and the Appointment of Senior Officers disclosed by the Company

on September 7 2024 on the CNINFO website.(III) Adjustment of the Strategy Committee of the Board of Directors and revision of relevant systems

In order to meet the needs of the strategic development improve the Company's ESG management level and improve the ESG

management system the Board of Directors agreed to adjust the "Strategy Committee" to the "Strategy and ESG Committee" upon

the deliberation and approval at the fourth meeting of the 11th Board of Directors and added ESG management-related

responsibilities on the basis of the original duties of the Strategy Committee. Meanwhile the relevant provisions of the Detailed

Rules for the Implementation of Special Committees of the Board of Directors were revised and the ESG Management System was

formulated. For details please refer to the Announcement on Adjusting the Strategy Committee of the Board of Directors to the

Strategy and ESG Committee of the Board of Directors and the full text of relevant systems disclosed by the Company on January 2

2025 on the CNINFO website.

FIYTA Precision Technology Co. Ltd.Board of Directors

March 14 2025

8