Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.FIYTA Precision Technology Co. Ltd.2024 Semi-annual Report
Aug. 21 2024
1Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Section 1 Important notes contents and definitions
The Board of Directors the Board of Supervisors and the
directors supervisors and senior management guarantee the
truthfulness accuracy and completeness of the semi-annual report
with no false records misleading statements or significant omissions
and bear individual and joint legal responsibility.Zhang Xuhua the person in charge of the Company Song
Yaoming the CFO and Tian Hui the Financial Manager (Accounting
Supervisor) declare to ensure that the financial content in the semi-
annual report is truthful accurate and complete.All directors have attended the board meeting to review the semi-
annual report
The forward-looking descriptions such as future plans and
development strategies included in this semi-annual report do not
constitute the Company's substantive commitments to investors.Investors are advised to pay attention to investment risks.The Company has described the existing macroeconomic risks
operational risks and other risks in detail in this report. Please refer to
the section on the risks faced by the Company and the
countermeasures in Section 3 Management discussion and analysis.The Company plans to pay no cash dividend no bonus shares
and no conversion of capital stock with provident funds.
2Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Contents
Section 1 Important notes contents and definitions... 2
Section 2 Company profile and key financial indica... 6
Section 3 Management discussion and analysis .........9
Section 4 Corporate governance ..................... 20
Section 5 Environmental and social responsibility ...22
Section 6 Significant events ........................23
Section 7 Changes in shares and shareholders ........29
Section 8 Relevant information about preferred sto...37
Section 9 Bond-related information ................. 38
Section 10 Financial statement ..................... 39
3Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
List of documents for future reference
1. Financial statements containing the signature and seal of the legal representative the principal in charge of
accounting and the principal of accounting agency.
2. The originals of all the company's documents and announcements publicly disclosed in the media designated by the
CSRC during the reporting period.
3. Full text of 2024 semi-annual report with the signature of the legal representative.
4Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Definition
Definitions refers to Description
The Company Company FIYTA refers to FIYTA Precision Technology Co. Ltd.Aviation Industry refers to Aviation Industry Corporation of China LTD.AVIC INTL refers to AVIC International Holding Corporation
AVIC INTL holding refers to AVIC International Holding Co. Ltd.AVIC Finance refers to AVIC Finance Co. Ltd.Phase II restricted stock incentive plan refers to 2018 A-Shares Restricted Stock Incentive Plan(Phase II)
5Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Section 2 Company profile and key financial indicators
I. Company Profile
Stock name FIYTA FIYTA B Stock code 000026 200026
Stock name before change (if
any) None
Stock listing stock exchange Shenzhen Stock Exchange
Chinese name of the
Company FIYTA Precision Technology Co. Ltd.Chinese short name of the
Company (if any) The FIYTA company
Foreign name of the
Company (if any) FIYTA Precision Technology Co. Ltd.Foreign short name of the
Company (if any) FIYTA
Legal representative of the
Company Zhang Xuhua
2. Contact person and contact information
Secretary of the Board of Directors Securities affairs representative
Name Song Yaoming Xiong Yaojia
Floor 20 Fiyta Technology Building 18th Floor Fiyta Technology
Contact address Gaoxin South 1st Road Nanshan Building Gaoxin South 1st Road
District Shenzhen Nanshan District Shenzhen
Telephone 0755－86013669 0755－86013669
Fax 0755－83348369 0755－83348369
E-mail investor@fiyta.com.cn investor@fiyta.com.cn
3. Other circumstances
1. Company contact information
The Company's registered address office address and zip code website e-mail etc. remained unchanged during the
reporting period. For details please refer to the 2023 Annual Report.
2. Information disclosure and storage location
The website of the stock exchange and the name and address of the media where the company discloses the semi-
annual report and the place where the company's semi-annual report is prepared remained unchanged during the
reporting period. For details please refer to the 2023 Annual Report.
3. Other relevant information
Not applicable
6Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
4. Main accounting data and financial indicators
Does the Company need to retrospectively adjust or restate the accounting data in previous years
No
Change in the current
The current reporting Same period last year reporting period comparedperiod to the same period last
year
Operating revenue (RMB) 2076397911.32 2364505262.56 -12.18%
Net profit attributable to
shareholders of the listed 147138482.34 187395067.23 -21.48%
company (RMB)
Net profit attributable to
shareholders of the listed
company excluding non- 140445221.81 177352543.66 -20.81%
recurring gains and losses
(RMB)
Net cash flow from
operating activities (RMB) 136530796.52 344659843.62 -60.39%
Basic earnings per share
(RMB/share) 0.3568 0.4517 -21.01%
Diluted earnings per share
(RMB/share) 0.3564 0.4517 -21.10%
Weighted average return
on equity 4.36% 5.80% -1.44%
Change at the end of the
End of the current reporting
period End of the previous year
current reporting period
compared to the end of the
previous year
Total assets (RMB) 4147991663.46 4204260897.08 -1.34%
Net assets attributable to
shareholders of the listed 3315327996.53 3333805752.19 -0.55%
company (RMB)
5. Differences in accounting data under domestic and overseas accounting
standards
1. Differences in net profit and net assets in the financial reports disclosed in accordance with
international accounting standards and Chinese accounting standards
Not applicable
2. Differences in net profit and net assets in the financial reports disclosed in accordance with
overseas accounting standards and Chinese accounting standards
Not applicable
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6. Non-recurring gains and losses items and amounts
Unit: RMB
Item Amount Notes
Loss/gain on disposal of non-current
assets (including reversal of 2906210.67
provision for asset impairment)
Government grants recognized in
current profit and loss (excluding
those closely related to the
Company's normal operations in
compliance with national policies 1414439.38
entitled in accordance with set
standards and having a sustained
impact on the Company's profit and
loss)
Reversal of provision for impairment
of receivables subject to individual 3302930.73
impairment testing
Other operating incomes and
expenses excluding the above items 1099305.50
Less: Income tax impact 2029625.75
Total 6693260.53
Specific circumstances of other items that meet the definition of non-recurring gains and losses:
Not applicable
Explanation of circumstances where items listed as non-recurring gains and losses in Explanatory Announcement No.
1 on Information Disclosure of Companies Issuing Securities Publicly - Non-recurring Gains and Losses are classified
as recurring
Not applicable
8Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Section 3 Management discussion and analysis
1. Main business of the Company during the reporting period
(1) Main business
The Company was founded and developed from aviation precision technology and material technology. Adhering
to the values of "brand leadership customer orientation value creation cooperative responsibility and learning
innovation" with the mission of "inheriting the spirit of 'aircraft for the country' and creating a quality life" it focuses on
the watch industry forming a core business layout of self-owned watch brands and famous watch retail channels. In
addition the company actively explores and cultivates new businesses such as precision technology and smart wear
and is in a stage of continuous development.The Company is deeply engaged in the construction of professional watchmaking capabilities and brand
operations and has a number of self-owned brands such as "FIYTA" "EMILE CHOURIET" covering different
dimensions such as high-end mass professional fashion and cool. Among them "FIYTA" a core proprietary brand
positions itself as a high-quality Chinese watch brand featuring aerospace watches. Adhering to the concept of
"national" as the core and "trendy" as the form it continues to create distinctive features upgrading towards
"youthfulness high-end and mainstream." At the same time it continuously increases investment in technological
innovation fields such as movement and technology applications. Leveraging the advantages of technology and quality
gradually establishing a leading position in the domestic industry and expanding its brand influence.In order to seize the opportunities in the domestic famous watch market and promote the rapid development of its
own brand the Company established the "Harmony" famous watch retail channel. "Harmony" is dedicated to
"becoming the premier comprehensive service provider for luxury watches." Through long-term and in-depth
cooperation with numerous prestigious watch groups and brands it has refined industry-leading operational
management and customer service capabilities establishing itself as one of the top professional high-end luxury watch
chain brands in China.In recent years the Company has adhered to the development principle of "shared technology shared industry
roots and aligned value." Leveraging its strength in precision technology and industry accumulation it has expanded
into the precision technology and smart wearable sectors which have now taken shape.
(2) Its industry situation
During the reporting period the National Bureau of Statistics announced that the total retail sales of consumer
goods in the first half of the year increased by 3.7% YoY. The per capita disposable income of residents nationwide
increased by 5.4% YoY. The domestic consumption market size and residents' consumption capacity have both
improved indicating a stable and positive market outlook. From the perspective of consumption structure the main
consumption is still concentrated in the field of daily necessities the large-scale and optional consumption items are
relatively weak; From the perspective of consumption channels new offline formats and online channels have grown
rapidly while traditional offline department stores brand stores and other channels have declined. Against this
backdrop with the iteration of domestic consumer demand and emerging technologies the traditional watch
consumption market is under significant pressure. According to the Federation of the Swiss Watch Industry
cumulative exports to mainland China in the first half of the year decreased by 21.6% year-on-year. Overall sales of
watches across various price segments have declined intensifying competition and notable differentiation among
brands. The wearable device consumer market is developing rapidly. IDC Consulting released that the domestic
smartwatch shipments in Q1 increased by 54.1% YoY showing an optimistic trend. The Company will continue to
9Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
deepen customer research enhance the core competitiveness of traditional watch business and actively promote the
development of new business such as smart wear to cope with market changes.
2. Analysis of core competitiveness
(1) Brand operation and management capabilities of the whole industry chain
The Company possesses integrated capabilities across the entire industry chain including research and
development design manufacturing sales and service. Through resource integration and business synergy it
continuously strengthens the differentiation of its core proprietary brand "FIYTA". During the reporting period "FIYTA"
brand won multiple awards including the Platinum and Gold awards at the 2024 MUSE Design Awards credited to its
innovative product lineup. With high-quality operational management on e-commerce platforms the company has
achieved multiple accolades including "2023 Annual Outstanding Merchant in the Jewelry and Gemstone Industry"
"2023 Tmall New Trend Track Award" "Tmall Annual Live Streaming Award" "JD Annual Trend New Product Award"
and "Douyin Annual Brand in Men's Fashion Apparel Industry." These achievements have significantly boosted the
brand's influence and visibility.
(2) Refined channel operation and management capabilities
The Company maintains sales channels covering nationwide and select overseas countries and regions.Leveraging advanced channel operations management it continuously optimizes store structures and enhances
operational efficiency. During the reporting period Harmony company was recognized as one of the "Top Ten
Enterprises in Nanshan District for Wholesale and Retail Industry Value Added in 2023" due to its outstanding channel
operations and comprehensive capabilities.
(3) Empowering the digital capabilities of the business
The Company possesses a digital retail system CRM system SAP system and cloud stores among other digital
platforms. By deepening digital applications across research and development design production sales and service
it empowers business development and enhances efficiency. Continuous strengthening of private domain operations
and integration of online and offline channels are priorities aimed at improving customer life cycle management
capabilities. During the reporting period core metrics such as new customer conversions and repeat purchases by
existing customers have shown sustained improvement.
(4) Core technical capabilities of precision technology
As a national enterprise technology center with research and production platforms in Shenzhen and Switzerland
the company has been actively advancing breakthroughs in movement technology and applications of technology
materials. It has accelerated the localization of key components such as movements. During the reporting period the
company achieved significant recognition by leading the completion of the first international standard ISO 14368-
4:2020 in the watch industry initiated and led by China. This accomplishment earned the company the Second Prize of
the Science and Technology Progress Award from the China Light Industry Federation. With the continuous
demonstration and leading role in the industry it helps to improve the standardization level in the industry and was
awarded the "Shenzhen Standard Innovation Demonstration Base".
(5) Construction capacity of professional talent team
The Company maintains a professional and stable workforce continually investing in talent development based
on the philosophy of "value creation." It explores comprehensive and flexible incentive mechanisms fostering
numerous industry-leading representatives in core areas such as design research and development and
manufacturing.
10Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
3. Analysis of main business
Overview
In 1H24 the Company adhered to the principle of high-quality development continued to implement the business
strategies of "seeking progress while maintaining stability" and "defensive counterattack" carried out various
operations and management work in an orderly manner and promoted the sustainable development of various
businesses. During the reporting period under the environment of insufficient demand in the watch consumer market
and weak consumption expectations the company achieved operating income of nearly RMB 2076400000
decreased by 12.18% YoY; The total profit was about RMB193680000 decreased by 20.79% YoY; At the same time
the Company focuses closely on refined operational management and risk control. The year-end asset-liability ratio
stands at 20.07% with net cash flow generated from operating activities amounting to nearly RMB137000000. The
operational activities remain robust and overall business risks are well-managed and controlled. Facing a challenging
market environment the Company remains steadfast in its development confidence and prioritizes shareholder returns.It has successfully implemented the 2023 annual cash dividend plan distributing RMB4.00 per 10 shares (tax inclusive)
to all shareholders. Additionally the Company has executed a plan to repurchase and cancel 9.3558 million shares of
domestically listed foreign capital shares (B-shares).During the reporting period the Company's main business initiatives are as follows:
(1) Continue to promote the upgrading of brand positioning and create brand differentiation
During the reporting period the "FIYTA" brand positioned as a high-quality Chinese watch brand with aerospace-
themed watches focused on its core product lineup. It concentrated resources on launching several aerospace-
themed watches including the Yun-20 Cross-Strait Time Zhi-20 Triumph Edition National Tide Golden Dragon
Limited Edition "Space Station" EVA Edition and "Space Walk" Return Cabin Edition. Integrating marketing and sales
through new media platforms the Company conducted various activities to enhance brand visibility. These included
appearances at Milan Fashion Week live streaming events like "Walking with Brilliance" participation in the 2024
China Brand Day and the appointment of Xia Zhiguang as brand ambassador. Special marketing campaigns such as
"Sparkling Gold" and brand origin live streams were also launched. These efforts across multiple channels
successfully created popular products like the "Little Golden Watch" and boosted the brand's presence significantly.
(2) Continue to promote the optimization of channel structure and give full play to the advantages of
operation and management
During the reporting period the "FIYTA" brand underwent a complete upgrade of its store image focusing on
aerospace-themed stores and comprehensive flagship stores like the Bo Guan series. The Company continued to
optimize its channel structure by establishing presence in mainstream shopping centers in first and second tier cities.Additionally it opened 17 new aerospace-themed stores aiming to enhance brand visibility and consumer
engagement through innovative retail experiences. Utilizing local lifestyle and Douyin live streaming we have
significantly enhanced our store's new media operational capabilities. We continue to strengthen online product
development and build a self-operated live streaming matrix. During the "618" shopping festival our e-commerce GMV
achieved growth against the trend ranking first nationwide in watch sales with our hit product "Little Golden Watch"
making it to the top of major platforms' bestseller lists. Actively expand duty-free channels and explore cooperation
opportunities in airports ports cruise ships and other duty-free channels.The retail of "Harmony" watches continues to focus on the four elements of "city brand business format and
partner" to foster the high-quality development of mid-to-high-end brands and premium distribution 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.
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(3) Continue to increase investment in scientific and technological innovation and strengthen the hard
core strength of precision technology
During the reporting period the Company increased its investment in areas such as movement technology
technology material applications and precision timing equipment. Building on the partial localization of movements in
some products the company continued to advance the localization of movements and the development of key
components like balance springs.
(4) Continue to promote digital transformation and deepen 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. Continuing with private domain operations leveraged mini-programs to cultivate private domain traffic
and develop activities like private domain group purchases. Continue to promote the integration of online and offline
attract customers to the offline stores through online customer acquisition and launch businesses such as TikTok
Local Life and JD to Home.
(5) Continue to promote the exploration of new business and cultivate new growth points
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. It also expanded into new customer
segments. 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. Meanwhile the "ADASHER" brand saw steady sales growth on platforms like TikTok and
Kuaishou. Both new business segments achieved increased revenue during the reporting period.YoY changes in main financial data
Unit: RMB
The current reporting Same period last YoY
period year increase/de Reason for changecrease
Operating revenue 2076397911.32 2364505262.56 -12.18% Not applicable
Operating cost 1304482455.55 1512527481.83 -13.75% Not applicable
Selling and
Distribution 449785002.40 456273629.20 -1.42% Not applicable
Expenses
General and
Administrative 89213932.54 104621729.61 -14.73% Not applicable
Expenses
Financial expenses 9622797.59 12188216.82 -21.05% Not applicable
Income tax expense 46545035.11 57131519.56 -18.53% Not applicable
R&D investment 27525998.33 28161470.54 -2.26% Not applicable
Mainly due to a decrease in
Net Cash Flows from collection due to the decline in
Operating Activities 136530796.52 344659843.62 -60.39% sales during the reporting
period.Net cash flows from
operating activities -83646605.14 -36270086.24 -130.62%
Mainly due to an increase in
fixed deposits during the
12Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
reporting period.Net cash flows from Mainly due to a YoY increase
financing activities -153122505.66 -102629832.84 -49.20% in dividends during thereporting period.Mainly due to a decrease in
Net increase in cash collection and an increase in
and cash equivalents -100273144.58 205621331.48 -148.77% dividends during the reporting
period.Significant changes in the company's profit composition or profit source during the reporting period
Not applicable
Composition of revenue
Unit: RMB
The current reporting period Same period last year YoY
increase/
Amount Proportion in Amount Proportion in decreasrevenue revenue e
Total operating
revenue 2076397911.32 100% 2364505262.56 100% -12.18%
By industry
Watch business 1910698928.67 92.03% 2210238499.43 93.48% -13.55%
Precision
technology 88908749.85 4.28% 67709263.28 2.86% 31.31%
business
Leasing business 70906534.63 3.41% 78768763.29 3.33% -9.98%
Other 5883698.17 0.28% 7788736.56 0.33% -24.46%
By product
Watch brand
business 384620560.57 18.52% 396794035.90 16.78% -3.07%
Watch retail
service business 1526078368.10 73.51% 1813444463.53 76.70% -15.85%
Precision
technology 88908749.85 4.28% 67709263.28 2.86% 31.31%
business
Leasing business 70906534.63 3.41% 78768763.29 3.33% -9.98%
Other 5883698.17 0.28% 7788736.56 0.33% -24.46%
By region
South China 985168650.24 47.44% 1085243222.03 45.89% -9.22%
Northwest China 299728304.42 14.44% 364119542.91 15.40% -17.68%
North China 67039768.59 3.23% 127379519.35 5.39% -47.37%
East China 258928020.96 12.47% 293815408.18 12.43% -11.87%
Northeast China 175024033.83 8.43% 183610107.98 7.77% -4.68%
Southwest China 290509133.28 13.99% 310337462.11 13.12% -6.39%
The industry product or region situation that accounts for more than 10% of the company's revenue or operating profit
Unit: RMB
Increase Increase/ Increase/d
or decrease ecrease in
decrease in gross
Operating Operating cost Gross in revenue operating profit raterevenue profit rate compared costs compared
with the compared with the
same with the same
period last same period last
13Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
year period year
last year
By industry
Watch business 1910698928.67 1208410271.38 36.76% -13.55% -15.79% 1.68%
Leasing business 70906534.63 18450234.17 73.98% -9.98% -5.58% -1.21%
By product
Watch brand
business 384620560.57 121046208.60 68.53% -3.07% -3.39% 0.11%
Watch retail
service business 1526078368.10 1087364062.78 28.75% -15.85% -16.97% 0.97%
Leasing business 70906534.63 18450234.17 73.98% -9.98% -5.58% -1.21%
By region
South China 985168650.24 623886476.28 36.67% -9.22% -8.82% -0.28%
Northwest China 299728304.42 183377627.30 38.82% -17.68% -22.12% 3.49%
North China 67039768.59 36074332.54 46.19% -47.37% -55.25% 9.47%
East China 258928020.96 163307282.94 36.93% -11.87% -15.30% 2.55%
Northeast China 175024033.83 115936550.01 33.76% -4.68% -6.53% 1.31%
Southwest China 290509133.28 181900186.48 37.39% -6.39% -6.91% 0.35%
If the statistical caliber of the company's main business data is adjusted during the reporting period the company's
latest period main business data adjusted according to the caliber at the end of the reporting period
Not applicable
4. Analysis of non-main business
Not applicable
5. Analysis of assets and liabilities
1. Major changes in the composition of assets
Unit: RMB
End of the current reporting
period End of last year Increase
or Description of
Proportion Proportion in decrease significantin total
Amount assets Amount total assets
in changes
Scale Scale
proportion
Cash and
bank balances 404356009.13 9.75% 504629153.71 12.00% -2.25% Not applicable
Accounts
receivable 355483465.81 8.57% 323142761.64 7.69% 0.88% Not applicable
Contract
assets 0.00 0.00% 0.00 0.00% 0.00% Not applicable
Inventories 2128331242.49 51.31% 2100666175.28 49.97% 1.34% Not applicable
Investment
properties 352408837.92 8.50% 360255832.14 8.57% -0.07% Not applicable
Long-term
equity 51952479.36 1.25% 51862607.30 1.23% 0.02% Not applicable
investments
Fixed assets 345651268.72 8.33% 355785354.68 8.46% -0.13% Not applicable
14Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Construction
in progress 0.00 0.00% 0.00 0.00% 0.00% Not applicable
Right-of-use
assets 109386646.99 2.64% 109452481.64 2.60% 0.04% Not applicable
Short-term
loans 320207333.32 7.72% 250187763.87 5.95% 1.77% Not applicable
Contract
liabilities 18804742.85 0.45% 12286243.62 0.29% 0.16% Not applicable
Long-term
loans 0.00 0.00% 0.00 0.00% 0.00% Not applicable
Lease
liabilities 38967635.39 0.94% 43526352.52 1.04% -0.10% Not applicable
2. Main overseas assets status
Not applicable
3. Assets and liabilities measured at fair value
Not applicable
4. Restrictions status on assets rights as of the end of the reporting period
Not applicable
6. Analysis of investment status
1. General situation
Investment amount during the Investment amount in the same
reporting period (RMB) period of last year (RMB) Change range
0.000.000.00%
2. Significant equity investment acquired during the reporting period
Not applicable
3. Significant non-equity investments in progress during the reporting period
Not applicable
4. Investment in financial assets
(1) Securities investment situation
Not applicable
15Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(2) Derivatives investment situation
Not applicable
5. Use of raised funds
Not applicable
16Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
7. Sale of major assets and equity
1. Sale of major assets
Not applicable
2. Sale of significant equity
Not applicable
8. Analysis of major holding and participating companies
Major subsidiaries and joint-stock companies with an impact of more than 10% on the company's net profit
Unit: RMB
Company name Company type Main business
Registered
Capital Total assets Net assets
Operating
revenue Operating profit Net profit
Purchase and
Shenzhen Harmony sale of clocks
World Watch Centre Subsidiar watches andy spare parts and 600000000.00 2146593585.53 1267998351.53 1491476340.69 140134226.41 105581743.58Co. Ltd. maintenance
services.Design R&D and
FIYTA Sales Co. Subsidiar sales of clocks
Ltd. y and watches and 450000000.00 460179857.41 332262404.66 220462510.20 -427183.97 -458594.99
spare parts.Shenzhen FIYTA Manufacture
Precision Technology Subsidiar clocks andy watches and 180000000.00 370702161.73 289668637.64 158313978.09 1707991.78 3049605.05Co. Ltd. spare parts.Production and
Shenzhen FIYTA Subsidiar processing of
STD Co. Ltd. y precision spare 50000000.00 202513032.94 168548184.30 99625145.51 5407080.74 5344683.21
parts.FIYTA (HONG Subsidiar Trade and 137737520.00 276082909.22 247632736.89 35039348.10 2389182.26 2246702.64
17Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
KONG) LIMITED y investment in
watches clocks
and accessories.Emile Chouriet Design R&D and
Horologe (Shenzhen) Subsidiar sales of clocksy and watches and 41355200.00 128961909.87 56740989.91 33412304.61 4271470.01 2527225.93Co. Ltd. spare parts.Acquisition and disposal of subsidiaries during the reporting period
Not applicable
Description of main holding and participating companies
Not applicable
18Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
9. Structured entities controlled by the company
Not applicable
10. Risks faced by the company and countermeasures
(1) Consumer market risk
At present the domestic consumer market is in a weak recovery state and residents' consumption preference is
rational and cautious. The watch consumption industry in which the company is located is still under pressure. On the
one hand the company will continue to focus on its core business intensifying efforts in differentiated product
development and increasing the proportion of aerospace series products. It will strengthen precision management
capabilities enhance channel operational efficiency and promote expansion of market share for the brand. On the
other hand it will accelerate the cultivation of strategic emerging industries and seek breakthroughs in industrial
transformation and upgrading.
(2) Consumption outflow risk
With the recovery of travel in Hong Kong and overseas the domestic consumer market is facing diversion
pressure. The company will continue to strengthen digital construction and application improve customer life cycle
management and service capabilities and enhance customer stickiness; Seize market opportunities and continue to
develop overseas business and duty-free channel business.
11. Implementation of the action plan of "double improvement of quality and
return"
Whether the company has disclosed the announcement of the action plan of "double improvement of quality and
return".No
19Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Section 4 Corporate governance
1. Information on the annual general meeting and temporary general meeting held
during the reporting period
1. General meeting of shareholders during the reporting period
Inaugural Type of Scale of investor Date of the
meeting meeting participation meeting Disclosure date Meeting resolution
For details please refer
to the Announcement
2023 Annual on Resolutions of theannual 2023 Annual General
general general 42.01% April 18 2024 April 19 2024
meeting meeting
Meeting 2024-016
disclosed by the
company on
www.cninfo.com.cn
2. Preferred shareholders with restored voting rights request to convene a temporary general
meeting
Not applicable
2. Changes in Directors Supervisors and Senior Management of the company
Name Position held Type Date Reason
He was elected as
the Chairman of the
10th Board of
Hu Min Chairman of the Supervisors of theBoard of Supervisors Be elected Jan. 4 2024 company at the 15th
meeting of the 10 th
Board of
Supervisors.
3. Profit distribution and conversion of provident funds into capital stock during
the reporting period
Not applicable
4. Implementation of the company's equity incentive plan employee stock
ownership plan or other employee incentive measures
1. Equity incentive
(1) The company's phase II restricted stock incentive plan
The company decided to launch the phase II Restricted Stock Incentive Plan during the 23rd Meeting of 9th Board of
Directors on December 4 2020 and its first extraordinary shareholders' meeting of 2021 on January 6. Following
20Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
approval at the 25th Meeting of 9th Board of Directors on January 15 2021 the company ultimately granted 7.66
million restricted A-shares to 135 incentive recipients at a price of RMB7.60 per share. This grant was completed and
listed on January 29 2021. For details please refer to the relevant announcement disclosed on www.cninfo.com.cn on
January 16 2021. The specific implementation during the reporting period is as follows:
Upon approval at the 18th meeting of the 10th Board of Directors and the 2023 Annual General Meeting of
Shareholders the company decided to repurchase and cancel 10020 restricted A-shares originally granted to a
former incentive recipient who had left the company but still held restricted shares that were not yet released from
lock-up. For details please refer to the relevant announcements of the company disclosed on www.cninfo.com.cn on
March 14 2024 April 19 2024 and July 3 2024.
2. Implementation of employee stock ownership plan
Not applicable
3. Other employee incentive measures
Not applicable
21Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Section 5 Environmental and social responsibility
1. Major environmental protection issues
Whether the listed companies and their subsidiaries classified as key pollutant discharging units designated by the
Ministry of Environmental Protection
No
Administrative penalties due to environmental issues during the reporting period
Not applicable
Refer to other environmental information disclosed by key pollutant discharging units
The company strictly abides by the Law of the People's Republic of China on the Prevention and Control of
Atmospheric Pollution the Law of the People's Republic of China on Prevention of Environmental Pollution Caused by
Solid Waste the Law of the People's Republic of China on Prevention and Control of Water Pollution and other laws
and regulations and carries out pollutants management. The company and its subsidiaries are not key pollutant
discharging units.Measures taken to reduce its carbon emissions during the reporting period and their effects
The company continues to actively respond to the call for "carbon peaking by 2030 and carbon neutrality by 2060"，carrying out daily monitoring of resource and energy consumption exploring energy-saving and emission reduction
space. At the same time promote energy-saving and emission reduction strategies in the management of raw
materials production accessories and office supplies.Reasons for not disclosing other environmental information
Not applicable
2. Social responsibility
For many years the company has been actively fulfilling its social responsibilities consistently publishing annual
special social responsibility reports for seventeen years. In 2024 for the first time the annual "Social Responsibility
Report" has been upgraded to an "Environmental Social and Governance (ESG) Report". For the latest information
please refer to the 2023 Environmental Social and Governance (ESG) Report disclosed by the company on
www.cninfo.com.cn on March 14 2024.
22Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Section 6 Significant events
1. The company's actual controller shareholders related parties acquirers and
the company itself committed to fulfilling all commitments to relevant parties
during the reporting period with any outstanding commitments as of the end of
the reporting period either fulfilled or overdue.Not applicable
2. Non-operating occupation of funds by controlling shareholders and other
related parties of listed companies
Not applicable
3. External guarantee in violation of regulations
Not applicable
4. Appointment and dismissal of accounting firms
Whether the semi-annual financial report has been audited
No
5. Explanation of the Board of Directors and the Board of Supervisors on the "non-
standard audit report" of the accounting firm during the reporting period
Not applicable
6. Explanation of the Board of Directors on the "non-standard audit report" of the
previous year
Not applicable
7. Matters relating to bankruptcy reorganization
Not applicable
8. Litigation matters
Not applicable
9. Penalties and rectification
Not applicable
23Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
10. Integrity status of the company and its controlling shareholders and actual
controllers
Not applicable
11. Major related party transactions
1. Related party transactions related to daily operations
Not applicable
2. Related party transactions arising from the acquisition or sale of assets or equities
Not applicable
3. Related party transactions of joint external investment
Not applicable
4. Related claims and debts
Not applicable
5. Transactions with related financial companies
Deposit business
Amount for the current period
Maximum Total
daily Range of Beginning withdrawal Ending
Related party Relationshi deposit deposit balance
Total deposits amount in balance
p limit interest (RMB1000 in the current the current (RMB10
(RMB1000 rates 0) period period 000)
0) (RMB10000) (RMB10000
)
Finance
AVIC company 0.205%-
Finance with related 80000 1.25% 46774 247761 256456 38079
relationship
Loan business
Amount for the current period
Beginning Total
Relationshi Loan limit
Ending
Loan rate
Related party (RMB1000 balance
Total loan repayment balance
p 0) Scope (RMB10000
amount in the amount in (RMB10
) current period the current 000)
(RMB10000) period
(RMB10000)
Finance Not higher
AVIC company than 1Y
Finance with related 80000 LPR 0 0 0 0
relationship interest
24Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
rate
Credit granting or other financial business
During the reporting period the company's daily maximum associated balance of deposits and loans with Aviation
Industry Financial did not exceed the limits stipulated in the financial services agreement. Additionally no credit or
other financial transactions occurred. At the same time the company issued the Risk Assessment Report on Related
Deposits and Loans with AVIC Finance Co. Ltd. every six months in response to the above matters.
6. Transactions between financial companies controlled by the company and related parties
Not applicable
7. Other major related party transactions
The 18th meeting of the 10th Board of Directors held on March 12 2024 and the 2023 Annual General Meeting of
Shareholders convened on April 18 2024 approved the proposal regarding anticipated routine related-party
transactions for the year 2024. During the reporting period the cumulative transaction amount of the company's
related transactions relating to daily operations was within the annual estimated range.Inquiry related to the disclosure website of interim report on major related transactions
Disclosure date of
Name of temporary announcement provisional Disclosure of website name in
announcement temporary announcement
Announcement on Resolutions of the 18th
Meeting of the 10th Board of Directors 2024-006 Mar. 14 2024 http://www.cninfo.com.cn/
Announcement on Prediction of Daily Related
Party Transactions 2024-009 Mar. 14 2024 http://www.cninfo.com.cn/
Announcement on Resolutions of 2023 Annual
General Meeting of Shareholders 2024-016 April 19 2024 http://www.cninfo.com.cn/
12. Major contracts and their performance
1. Trusteeship contracting and leasing matters
(1) Trusteeship
Not applicable
(2) Contracting
Not applicable
(3) Leasing
Not applicable
2. Major guarantee
Unit: RMB10000
External guarantees provided by the company and its subsidiaries (excluding guarantees provided to subsidiaries)
25Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Announ Whethe
Name cement Counter r the Whethe
of disclosu Actual perform r it is a
guarant re date Guarant Actual guarant Guarant
Collater - Guarant
al (if guarant ee ance guarant
ee related ee limit date eed ee type any) ee (if period has ee for
object to amount any) been relatedguarant complet parties
ee limit ed
Not
applica
ble
Total amount of Total actual
external guarantee amount of external
approved during 0 guarantee during 0
the reporting the reporting
period (A1) period (A2)
Total amount of
external guarantee Total actual
approved at the external guarantee
end of the 0 balance at the end 0
reporting period of the reporting
(A3) period (A4)
Guarantees provided by the company to its subsidiaries
Announ Whethe
Name cement Counter r the Whethe
of disclosu Actual perform r it is a
guarant re date Guarant Actual guarant Guarant
Collater - Guarant
related ee limit date eed ee type al (if guarant ee
ance guarant
ee has ee for
object to amount
any) ee (if period been related
guarant any) complet parties
ee limit ed
Shenzh
en
Harmon Joint
y World Mar. 18 Decem
Watch 2023 30000 ber 30 12000
liability
2023 guarant
1 No No
Centre ee
Co.Ltd.Total amount of Total actual
guarantees amount of
approved for guarantees
subsidiaries during 60000 provided to 0
the reporting subsidiaries during
period (B1) the reportingperiod (B2)
Total approved Total actual
guarantee limit for guarantee balance
subsidiaries at the 60000 for subsidiaries atend of the the end of the 12000
reporting period reporting period
(B3) (B4)
Guarantees provided by subsidiaries to subsidiaries
Name Announ Guarant Actual Actual Guarant Collater Counter Guarant Whethe Whethe
26Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
of cement ee limit date guarant ee type al (if - ee r the r it is a
guarant disclosu eed any) guarant period perform guarant
ee re date amount ee (if ance ee for
object related any) has related
to been parties
guarant complet
ee limit ed
Not
applica
ble
Total amount of Total actual
guarantees amount of
approved for guarantees
subsidiaries during 0 provided to 0
the reporting subsidiaries during
period (C1) the reportingperiod (C2)
Total approved Total actual
guarantee limit for guarantee balance
subsidiaries at the for subsidiaries at
end of the 0 the end of the 0
reporting period reporting period
(C3) (C4)
Total amount of corporate guarantees (i.e. the total of the top three items)
Total amount of Total actual
guarantee amount of
approved during
the reporting 60000
guarantee during
the reporting 0
period period
(A1+B1+C1) (A2+B2+C2)
Total approved Total actual
guarantee limit at guarantee balance
the end of the 60000 at the end of the 12000
reporting period reporting period
(A3+B3+C3) (A4+B4+C4)
The proportion of actual total amount of
guarantee (i.e. A4+B4+C4) in the 3.62%
company's net assets
In which:
Balance of guarantees provided to
shareholders actual controllers and their 0
related parties (D)
Balance of debt guarantee directly or
indirectly provided to the guaranteed
object with the asset/liability ratio 0
exceeding 70% (E)
Total amount of guarantee exceeding
50% of net assets (F) 0
Total amount of the above three
guarantees (D+E+F) 0
For the unexpired guarantee contract
the guarantee liability occurred or there Not applicable
is evidence showing that it is possible to
27Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
assume joint and several liability during
the reporting period (if any)
Description of external guarantee
provided in violation of prescribed Not applicable
procedures (if any)
Specific description of the composite guarantee
Not applicable
3. Entrust financing
Not applicable
4. Other major contracts
Not applicable
13. Notes to other major events
(1) Matters concerning the continuing contract of the accounting firm
The company's 18th meeting of the 10th Board of Directors and the 2023 Annual General Meeting of
Shareholders have resolved to continue appointing Dahua Certified Public Accountants (Special General Partnership)
as the auditor for the company's 2024 financial statements and internal controls for a term of one year. For detailed
information please refer to the company's announcements "Announcement on the Continued Appointment of
Accounting Firm 2024-011" and "2023 Annual General Meeting of Shareholders Resolution Announcement 2023-016"
disclosed on CNINFO on March 14 2024 and April 19 2024 respectively.
(2) 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.
14. Major events of the company's subsidiaries
Not applicable
28Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Section 7 Changes in shares and shareholders
1. Changes in shares
1. Changes in shares
Unit: Shares
Before this change Increase/decrease in this change (+ -) After this change
Issu Capital
e Right convers
Quantity Scale ion ofNew s Other Sub-total Quantity Scale
shar issue
provide
nt
es funds
1.
Restricted 2729860 0.66% 0 0 0 -153940 -153940 2575920 0.63%
shares
1. State-
owned 0 0.00% 0 0 0 0 0 0 0.00%
shares
2. State-
owned
legal
person 0 0.00% 0 0 0 0 0 0 0.00%
shareholdi
ng
3. Other
domestic
shareholdi 2729860 0.66% 0 0 0 -153940 -153940 2575920 0.63%
ng
Includi
ng:
domestic
legal 0 0.00% 0 0 0 0 0 0 0.00%
person
shareholdi
ng
Dome
stic natural
person 2729860 0.66% 0 0 0 -153940 -153940 2575920 0.63%
shareholdi
ng
4.
Foreign
shareholdi 0 0.00% 0 0 0 0 0 0 0.00%
ng
Includi
ng:
overseas 0 0.00% 0 0 0 0 0 0 0.00%
legal
person
29Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
shareholdi
ng
Overs
eas
natural
persons 0 0.00% 0 0 0 0 0 0 0.00%
shareholdi
ng
2. Non-
restricted 412490110 99.34% 0 0 0 -9201823 -9201823 403288287 99.37%
shares
1. RMB
ordinary 362553413 87.31% 0 0 0 153940 153940 362707353 89.37%
shares
2.
Domestic
listed 49936697 12.03% 0 0 0 -9355763 -9355763 40580934 10.00%
foreign
shares
3.
Overseas
listed 0 0.00% 0 0 0 0 0 0 0.00%
foreign
shares
4.
Others 0 0.00% 0 0 0 0 0 0 0.00%
3. Total
number of 415219970 100.00% 0 0 0 -9355763 -9355763 405864207
100.00
shares %
Reasons for change in shares
1. During the reporting period due to the adjustment of the transferable quota for senior management 153940 shares
with sales restrictions were reduced (corresponding to an increase in unrestricted shares with the total capital stock
remaining unchanged).
2. During the reporting period as the company completed the implementation of the repurchase plan for certain
domestically listed foreign shares (B shares) the repurchased B shares were canceled reducing 9355763
unrestricted shares (total capital stock decreased).In view of the above reasons at the end of the reporting period the total share capital of the company decreased by
9355763 shares and the total share capital decreased from 415219970 shares to 405864207 shares.
Approval of change in shares
Upon the authorization and approval of the company's 2022 annual general meeting of shareholders the
company canceled the repurchased 9355763 B shares.Transfer of change in shares
Upon the review and confirmation of China Securities Depository and Clearing Corporation Limited (CSDC) Shenzhen
Branch the company has completed the cancellation of B shares on May 10 2024.Implementation progress of share repurchase
30Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
The company's 11th meeting of the 10th Board of Directors and the 2022 Annual General Meeting of
Shareholders reviewed and approved the "Plan for the Repurchase of Certain Domestically Listed Foreign Shares (B
Shares)." For detailed information please refer to the relevant announcements disclosed on www.cninfo.com.cn on
March 18 2023 and April 27 2023.As of April 25 2024 the term of the share repurchase plan has expired and been fully implemented. The
company cumulatively repurchased 9355763 domestically listed foreign shares (B shares) through the special
securities account via centralized bidding accounting for 2.25% of the company's total share capital. The highest
transaction price for the repurchased shares was HKD8.00 per share the lowest transaction price was HKD7.08 per
share and the total amount paid was HKD70401771.17 (excluding transaction fees). The aforementioned shares
were canceled on May 10 2024.The implementation progress of the reduction of repurchased shares through centralized bidding
Not applicable
The impact of the share changes on financial indicators such as basic earnings per share and diluted earnings per
share for the most recent year and period as well as net assets per share attributable to the company's ordinary
shareholders is as follows:
Jan. - Jun. 2024 Year 2023
Financial indicators Before the change After the change Before the change in After the change of
in shares of shares shares shares
Basic earnings per share
(RMB/share) 0.3541 0.3568 0.8082 0.8191
Diluted earnings per share
(RMB/share) 0.3537 0.3564 0.8075 0.8183
Net asset value per share
(RMB/share) attributable to
ordinary shareholders of the 7.98 8.17 8.03 8.21
company.Other contents that the company deems necessary or required to be disclosed by securities regulator.Not applicable
31Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
2. Changes in restricted shares
Unit: Shares
Number Number Number
of of of
restricted restricted restricted Number ofSharehol
der shares at shares shares
restricted
shares at Reason for restricted Date of restricted sales
name the released increase sales releasedbeginning in the d in the the end of
of the current current the period
period period period
1. At the beginning of the
period the transferable quota
for senior management was
adjusted the restricted shares
held by senior management
Executive locked-in decreased by 40013 shares.Li Ming 160080 40013 0 120067 shares and unlocked 2. The remaining restricted
restricted shares shares were unlocked
according to the conditions for
senior management locked
shares and the company's
equity incentive management
measurement.
1. At the beginning of the
period the transferable quota
for senior management was
adjusted the restricted shares
held by senior management
Executive locked-in increased by 12487 shares.Pan Bo 160050 0 12487 172537 shares and unlocked 2. The remaining restricted
restricted shares shares were unlocked
according to the conditions for
senior management locked
shares and the company's
equity incentive management
measurement.
1. At the beginning of the
period the transferable quota
for senior management was
adjusted the restricted shares
held by senior management
Lu Executive locked-in decreased by 40013 shares.Wanjun 160050 40013 0 120037 shares and unlocked 2. The remaining restrictedrestricted shares shares were unlocked
according to the conditions for
senior management locked
shares and the company's
equity incentive management
measurement.
1. At the beginning of the
Liu Executive locked-in period the transferable quota
Xiaomin 160050 40013 0 120037 shares and unlocked for senior management was
g restricted shares adjusted the restricted sharesheld by senior management
decreased by 40013 shares.
32Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
2. The remaining restricted
shares were unlocked
according to the conditions for
senior management locked
shares and the company's
equity incentive management
measurement.
1. At the beginning of the
period the transferable quota
for senior management was
adjusted the restricted shares
held by senior management
Tang Executive locked-in decreased by 26888 shares.Haiyuan 107550 26888 0 80662 shares and unlocked 2. The remaining restrictedrestricted shares shares were unlocked
according to the conditions for
senior management locked
shares and the company's
equity incentive management
measurement.The remaining restricted
Chen Unlocked restricted shares were unlocked
Libin 60120 0 0 60120 shares according to the company'sequity incentive management
measurement.The remaining restricted
Bao Unlocked restricted shares were unlockedXianyon 40080 0 0 40080 shares according to the company'sg equity incentive management
measurement.The remaining restricted
Unlocked restricted shares were unlockedSun Lei 40080 0 0 40080 shares according to the company'sequity incentive management
measurement.The remaining restricted
Sheng Li 40080 0 0 40080 Unlocked restricted
shares were unlocked
shares according to the company'sequity incentive management
measurement.
1. At the beginning of the
period the transferable quota
for quit senior management
was adjusted the restricted
The quit senior shares held by senior
Other management's locked- management decreased by
sharehol 1801720 19500 0 1782220 in shares and 19500 shares.ders unlocked restricted 2. The remaining restricted
shares shares were unlockedaccording to the conditions for
quit senior management
locked shares and the
company's equity incentive
management measurement.Total 2729860 166427 12487 2575920 -- --
33Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
2. Issuance and listing of securities
Not applicable
3. Number of shareholders and their shareholding situation in the company
Unit: Shares
Total number of
common shareholders Total number of preferred shareholders with
at the end of the 27671 restored voting rights at the end of the 0
reporting period reporting period (if any) (see Note 8)
Shareholders holding more than 5% common stock or the top 10 common stock shareholders' shareholding details
(excluding shares lent through refinancing)
Number of Pledge and
Share common Increase/d
Nature of stock held ecrease Number of Number of non-
marking
Sharehold holdin Or freezing
er name shareholde g at the end during the
restricted restricted
common common stock situationr of the reporting
Scale reporting period stock held held Status of Quant
period shares ity
AVIC
Internatio State-
nal owned 40.16 16297732
Not
legal % 7 0 0 162977327 applicabl 0Holding e
Co. Ltd. person
Domestic Not
#Wu Jilin natural 4.87% 19757542 1713915 0 19757542 applicabl 0
person e
Xu Domestic Not
Guoliang natural 1.46% 5924268 -1318500 0 5924268 applicabl 0person e
Domestic Not
Qiu Hong natural 0.62% 2510000 40000 0 2510000 applicabl 0
person e
Domestic Not
#Zhu Rui natural 0.53% 2145200 738100 0 2145200 applicabl 0
person e
#Qu Domestic Not
Yongjie natural 0.33% 1341900 55100 0 1341900 applicabl 0person e
#Wang Domestic Not
Xing natural 0.32% 1302500 481100 0 1302500 applicabl 0person e
#Ge Domestic Not
Zhongwei natural 0.29% 1172300 300300 0 1172300 applicabl 0person e
Domestic Not
Chen Hao natural 0.28% 1149543 47900 0 1149543 applicabl 0
person e
Domestic Not
#Zhu Xian natural 0.25% 1032540 722540 0 1032540 applicabl 0
person e
Strategic investors or Not applicable
general legal persons
34Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
becoming the top 10
common stock
shareholders due to
placement of new
shares (if any) (see
Note 3)
Explanation of the
aforementioned
shareholders' The Company is unaware of whether the aforementioned 10 shareholders are related or
association or concerted constitute concerted actors.action
Description of the above
shareholders' The shareholder AVIC International Holdings Limited authorized a representative to
involvement in the exercise voting rights on behalf of the company at the 2023 annual general meeting of
commissioned/entrusted shareholders representing 162977327 shares. For details of the voting results please
voting rights and waiver refer to the relevant announcements issued by the company on the website of
of voting rights www.cninfo.com.cn.Special instructions on
the existence of special
repurchase accounts
among the top 10 Not applicable
shareholders (if any)
(see Note 11)
Shareholdings of the top 10 shareholders of non-restricted common stock (excluding shares lent through refinancing
and shares locked by senior management)
Shareholder name Number of non-restricted common stock
Type of shares
held at the end of the reporting period Type of shares Quantity
AVIC International
Holding Co. Ltd. 162977327 RMB ordinary shares 162977327
#Wu Jilin 19757542 RMB ordinary shares 19757542
Xu Guoliang 5924268 RMB ordinary shares 5924268
Qiu Hong 5924268 RMB ordinary shares 5924268
#Zhu Rui 2145200 RMB ordinary shares 2145200
#Qu Yongjie 1341900 RMB ordinary shares 1341900
#Wang Xing 1302500 RMB ordinary shares 1302500
#Ge Zhongwei 1172300 RMB ordinary shares 1172300
Chen Hao 1149543 RMB ordinary shares 1149543
#Zhu Xian 1032540 RMB ordinary shares 1032540
Explanation of the
relationship or
concerted actions
between the top 10
holders of unrestricted
common stock and that The Company is unaware of whether the aforementioned 10 shareholders are related or
between the top 10 constitute concerted actors.holders of unrestricted
common stock and the
top 10 common stock
shareholders.
1. In addition to holding 10202377 shares through the ordinary securities account Wu
Explanation of the top Jilin the shareholder of the company also holds 9555165 shares through the client credit
10 common stock trading guarantee securities account of CICC Wealth Management holding 19757542
shareholders' shares in total;
participation in 2. In addition to holding 307100 shares through the ordinary securities account Zhu Rui
securities margin trading the shareholder of the company also holds 1838100 shares in the client credit trading
35Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(if any) (see Note 4) guarantee securities account of First Capital Securities Co. Ltd. holding a total of
2145200 shares;
3. In addition to holding 59000 shares through the ordinary securities account Qu
Yongjie the shareholder of the company also held 1282900 shares through the
customer credit trading guarantee securities account of Shanxi Securities Co. Ltd. holding
a total of 1341900 shares;
4. In addition to holding 882500 shares through the ordinary securities account Wang
Xing the shareholder of the company also holds 420000 shares through the customer
credit trading guarantee securities account of China Merchants Securities co. Ltd. (CMS)
holding a total of 1302500 share;
5. In addition to holding 672300 shares through the ordinary securities account Ge
Zhongwei the shareholder of the company also held 500000 shares through the
customer credit trading guarantee securities account of Zheshang Securities Co. Ltd.holding a total of 1172300 shares;
6. In addition to holding 25000 shares through the ordinary securities account Zhu Xian
the shareholder of the company also held 1007540 shares through the customer credit
trading guarantee securities account of HuaChuang Securities Co. Ltd. holding a total of
1032540 shares.
Participation of shareholders holding more than 5% the top 10 shareholders and the top 10 shareholders of unlimited
outstanding shares in securities margin trading
Not applicable
Changes in the top 10 shareholders and the top 10 shareholders of unlimited outstanding shares due to securities
margin trading compared to the previous period
Not applicable
Did the company's top 10 common stock shareholders and top 10 holders of unrestricted common stock engage in any
agreed repurchase transactions during the reporting period
No
4. Changes in shareholdings of Directors Supervisors and Senior Management
Not applicable
There was no change in the shareholding of the company's Directors Supervisors and Senior Management during the
reporting period. For details please refer to the 2023 Annual Report.
5. Changes in controlling shareholders or actual controllers
Changes in controlling shareholders during the reporting period
Not applicable
Change of actual controller during the reporting period
Not applicable
36Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Section 8 Relevant information about preferred stock
Not applicable
37Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Section 9 Bond-related information
Not applicable
38Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Section 10 Financial statement
I. Audit Report
Whether the semi-annual report has been audited
No
2. Financial statements
The unit of the financial statements in the notes is RMB
1. Consolidated balance sheet
Prepared by: FIYTA Precision Technology Co. Ltd.June 30 2024
Unit: RMB
Item Ending Balance Opening balance
Current assets:
Cash and bank balances 404356009.13 504629153.71
Deposit reservation for balance
Lending funds
Trading financial assets
Derivative financial assets
Notes receivable 16338392.31 18268972.37
Accounts receivable 355483465.81 323142761.64
Receivables financing
Prepayment 6569774.50 6571239.98
Premiums receivable
Cession premiums receivable
Provision of cession receivable
Other receivables 59436540.53 57725792.00
Including: Interest receivable
Dividend receivable
Redemptory monetary capital for
sale
Inventories 2128331242.49 2100666175.28
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 89039020.97 72249391.81
Total current assets 3059554445.74 3083253486.79
39Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Non-current assets:
Loans and advances offered
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 51952479.36 51862607.30
Other equity instrument
investments
Other non-current financial assets
Investment properties 352408837.92 360255832.14
Fixed assets 345651268.72 355785354.68
Construction in progress
Productive biological assets
Oil and gas assets
Right-of-use assets 109386646.99 109452481.64
Intangible assets 30848580.73 31664380.77
Including: Data resources
Development expenditures
Including: Data resources
Goodwill
Long-term prepaid expenses 120110202.46 122324355.13
Deferred income tax assets 75893868.97 80227771.46
Other non-current assets 2185332.57 9434627.17
Total non-current assets 1088437217.72 1121007410.29
Total assets 4147991663.46 4204260897.08
Current liabilities:
Short-term loans 320207333.32 250187763.87
Borrowing from the central bank
Borrowed funds
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 131372308.62 173825907.71
Advances from customer 8242987.93 10267758.31
Contract liabilities 18804742.85 12286243.62
Financial assets sold for
repurchase
Deposits from customers and
interbank
Receivings from vicariously traded
securities
Funds received as stock
underwrite
Employee benefits payable 73285559.36 120084810.60
40Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Taxes payable 52552871.74 64188161.31
Other payables 110793067.03 121937801.07
Including: Interest payable
Dividend payable 2907796.73 2058352.24
Service charges and commissions
payable
Cession premiums payable
Liabilities held for sale
Non-current liabilities due within
one year 69943530.95 66399004.20
Other current liabilities 2078002.76 1589635.30
Total current liabilities 787280404.56 820767085.99
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: preferred stock
Perpetual bonds
Lease liabilities 38967635.39 43526352.52
Long-term payables
Long-term employee benefits
payable
Estimated liabilities
Deferred income 952785.69 952785.69
Deferred tax liability 5462841.29 5208920.69
Other non-current liabilities
Total non-current liabilities 45383262.37 49688058.90
Total liabilities 832663666.93 870455144.89
Owner's equity:
Share capital 405864207.00 415219970.00
Other equity instruments
Including: preferred stock
Perpetual bonds
Capital reserve 936080193.96 990159033.17
Less: treasury stock 13445814.81 78645532.23
Other comprehensive income 13747808.17 19325335.93
Special reserve 3765015.42 3223158.06
Surplus reserves 275010401.50 275010401.50
General risk provisions
Undistributed profits 1694306185.29 1709513385.76
Total equity attributable to the owner
of the parent company 3315327996.53 3333805752.19
Minority interests
Total owner's equity 3315327996.53 3333805752.19
Total liabilities and owner's equity 4147991663.46 4204260897.08
Legal Representative: Zhang Xuhua CFO: Song Yaoming Financial Manager: Tian Hui
41Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
2. Balance Sheet of parent company
Unit: RMB
Item Ending Balance Opening balance
Current assets:
Cash and bank balances 309352375.23 308230255.35
Trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 11175784.69 1822916.61
Receivables financing
Prepayment
Other receivables 646226304.77 696328419.85
Including: Interest receivable
Dividend receivable
Inventories 44792.57
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 13231838.08 15886769.82
Total current assets 980031095.34 1022268361.63
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 1633784801.52 1633041716.11
Other equity instrument
investments
Other non-current financial assets
Investment properties 287220334.04 293695692.68
Fixed assets 202865789.95 207209890.94
Construction in progress
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 22875581.52 23460211.70
Including: Data resources
Development expenditures
Including: Data resources
Goodwill
Long-term prepaid expenses 3934381.48 4795846.73
42Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Deferred income tax assets 834088.92 640783.05
Other non-current assets 1106563.00 710807.49
Total non-current assets 2152621540.43 2163554948.70
Total assets 3132652635.77 3185823310.33
Current liabilities:
Short-term loans 320207333.32 250187763.87
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 3325588.05 2285657.88
Advances from customer 8242987.93 10267758.31
Contract liabilities
Employee benefits payable 17686842.19 25886702.67
Taxes payable 3322230.50 3322241.54
Other payables 257308884.44 224668548.77
Including: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 610093866.43 516618673.04
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Estimated liabilities
Deferred income 952785.69 952785.69
Deferred tax liability
Other non-current liabilities
Total non-current liabilities 952785.69 952785.69
Total liabilities 611046652.12 517571458.73
Owner's equity:
Share capital 405864207.00 415219970.00
Other equity instruments
Including: preferred stock
Perpetual bonds
Capital reserve 938958689.77 993037528.98
Less: treasury stock 13445814.81 78645532.23
Other comprehensive income
43Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Special reserve
Surplus reserves 275010401.50 275010401.50
Undistributed profits 915218500.19 1063629483.35
Total owner's equity 2521605983.65 2668251851.60
Total liabilities and owner's equity 3132652635.77 3185823310.33
Legal Representative: Zhang Xuhua CFO: Song Yaoming Financial Manager: Tian Hui
3. Consolidated income statement
Unit: RMB
Item Semi-annual 2024 Semi-annual 2023
I. Total operating income 2076397911.32 2364505262.56
Including: Operating revenue 2076397911.32 2364505262.56
Interest income
Premiums earned
Income from service
charges and commissions
II. Total operating cost 1892890643.96 2129534984.07
Including: Operating costs 1304482455.55 1512527481.83
Interest expense
Expenditures of service
charges and commissions
Surrender value
Net payments for insurance
claims
Withdrawal of net provision
for insurance contracts
Expenditure of policy
dividend
Reinsurance costs
Taxes and surcharges 12260457.55 15762456.07
Selling and Distribution
Expenses 449785002.40 456273629.20
General and Administrative
Expenses 89213932.54 104621729.61
R&D Expenditures 27525998.33 28161470.54
Financial expenses 9622797.59 12188216.82
Including: interest
expenses 5169603.47 6690859.35
Interest income 2185535.51 2432180.03
Plus: other income 3103884.50 6691609.41
Investment income ("-" for
losses) 313834.17 -1697481.65
Including: income from
investment in associates and joint 89872.06 -1697481.65
ventures
Gains from
44Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
derecognition of financial assets
measured at amortized cost
Foreign exchange gains ("-"
for losses)
Net exposure hedging income
("-" for losses)
Gains from changes in fair
value ("-" for losses)
Credit impairment losses ("-"
for losses) 2724678.43 4333947.62
Asset impairment losses ("-"
for losses) 28336.82
Asset disposal income ("-" for
losses) 2906210.67 -76689.73
3. Operating profits ("-" for losses) 192584211.95 244221664.14
Plus: non-operating revenue 1378138.85 596523.83
Less: non-operating expenses 278833.35 291601.18
4. Total profits ("-" for total losses) 193683517.45 244526586.79
Less: income tax expenses 46545035.11 57131519.56
5. Net profits ("-" for net losses) 147138482.34 187395067.23
(I) Classified by business continuity
1. Net profit from continuing
operations ("-" for net losses) 147138482.34 187395067.23
2. Net profit from discontinued
operations ("-" for net losses)
(II) Classified by ownership
1. Net profit attributable to
shareholders of the parent company 147138482.34 187395067.23
("-" for net losses)
2. Minority interest income ("-"
for net losses)
VI. Net of tax from other
comprehensive income -5577527.76 9405009.07
Net amount of other
comprehensive income after tax
attributable to owners of the parent -5577527.76 9405009.07
company
(I) Other comprehensive
incomes that cannot be reclassified
into profit and loss
1. Changes in re-
measurement of the defined benefit
plan
2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method
3. Changes in fair value of
other equity instrument investments
4. Changes in fair value of
enterprise's own credit risk
5. Other
(II) Other comprehensive income
that can be re-classified into profit -5577527.76 9405009.07
45Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
and loss
1. Other comprehensive
income that can be carried forward to
profit and loss under the equity
method
2. Changes in fair value of
other debt investments
3. The amount of financial
assets reclassified and included in
other comprehensive income
4. Credit impairment reserves
of other debt investment
5. Cash flow hedge reserve
6. Translation difference of
foreign currency financial statements -5577527.76 9405009.07
7. Other
Net of tax from other
comprehensive income attributable to
minority shareholders
VII. Total comprehensive income 141560954.58 196800076.30
Total comprehensive income
attributable to owners of the parent 141560954.58 196800076.30
company
Total comprehensive income
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.3568 0.4517
(II) Diluted earnings per share 0.3564 0.4517
Legal Representative: Zhang Xuhua CFO: Song Yaoming Financial Manager: Tian Hui
4. Profit Statement of Parent Company
Unit: RMB
Item Semi-annual 2024 Semi-annual 2023
I. Operating revenue 95651893.86 92042875.14
Less: operating cost 28763610.04 22121058.14
Taxes and surcharges 3754920.70 3858296.21
Selling and Distribution
Expenses 13488147.65 510613.70
General and Administrative
Expenses 27338182.18 29511087.70
R&D Expenditures 6949411.52 5986203.21
Financial expenses -888010.29 -103859.98
Including: interest expenses 305742.86 1476552.70
Interest income 1605624.26 1953770.61
Plus: other income 194361.73 753278.99
Investment income ("-" for
losses) 89872.06 -1697481.65
Including: income from
investment in associates and joint 89872.06 -1697481.65
ventures
46Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Gains from
derecognition of financial assets
measured at amortized cost ("-" for
losses)
Net exposure hedging income
("-" for losses)
Gains from changes in fair
value ("-" for losses)
Credit impairment losses ("-"
for losses) -520369.57 -362763.81
Asset impairment losses ("-"
for losses)
Asset disposal income ("-" for
losses) 2920369.62 -37783.55
2. Operating profits ("-" for losses) 18929865.90 28814726.14
Plus: non-operating revenue 973.45 8037.20
Less: non-operating expenses 334515.20 837.18
3. Total profits ("-" for total losses) 18596324.15 28821926.16
Less: income tax expenses 4661624.51 8154082.65
4. Net profits ("-" for net losses) 13934699.64 20667843.51
(1) Net profit from continuing
operations ("-" for net losses) 13934699.64 20667843.51
(2) Net profit from discontinued
operations ("-" for net losses)
V. Net of tax of other comprehensive
income
(I) Other comprehensive
incomes that cannot be reclassified
into profit and loss
1. Changes in re-
measurement of the defined benefit
plan
2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method
3. Changes in fair value of
other equity instrument investments
4. Changes in fair value of
enterprise's own credit risk
5. Other
(II) Other comprehensive income
that can be re-classified into profit
and loss
1. Other comprehensive
income that can be carried forward to
profit and loss under the equity
method
2. Changes in fair value of
other debt investments
3. The amount of financial
assets reclassified and included in
other comprehensive income
4. Credit impairment reserves
47Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
of other debt investment
5. Cash flow hedge reserve
6. Translation difference of
foreign currency financial statements
7. Other
VI. Total comprehensive income 13934699.64 20667843.51
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
Legal Representative: Zhang Xuhua CFO: Song Yaoming Financial Manager: Tian Hui
5. Consolidated Cash Flow Statement
Unit: RMB
Item Semi-annual 2024 Semi-annual 2023
I. Cash flows from operating
activities:
Cash received from sale of goods
and rendering of services 2242943860.28 2544494031.57
Net increase in deposits from
customers and interbank
Net increase in borrowings from
the central bank
Net increase in funds borrowed
from other financial institutions
Cash received for premiums under
the original insurance contract
Net cash received from
reinsurance business
Net increase in deposits from the
insured and investment funds
Cash received for interest service
charges and commissions
Net increase in borrowed funds
Net increase in funds of
repurchasing business
Net cash received from vicariously
traded securities
Refund of taxes and surcharges 1361806.68 850371.86
Cash received from other
operating activities 22763002.95 37298851.19
Sub-total of cash inflow from
operating activities 2267068669.91 2582643254.62
Cash paid for purchase of goods
and rendering of services 1493308339.25 1584272785.87
Net increase in loans and
advances to customers
Net increase in deposits in the
central bank and deposits from
interbank
Cash paid for the compensation
under the original insurance contract
48Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Net increase in lending funds
Cash paid for interest service
charges and commissions
Cash paid for policy dividends
Cash paid to and for employees 336053098.67 336029420.86
Taxes and fees paid 115761812.75 135231581.42
Other cash payments relating to
operating activities 185414622.72 182449622.85
Sub-total of cash outflow from
operating activities 2130537873.39 2237983411.00
Net Cash Flows from Operating
Activities 136530796.52 344659843.62
II. Cash flows from investing
activities:
Cash received from disinvestment
Cash received from investment
income 196270.19
Net cash received from disposal of
fixed assets intangible assets and 4813262.87 3545.41
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received from other investing
activities 120049969.61
Sub-total of cash inflow from
investing activities 125059502.67 3545.41
Cash paid to acquire and construct
fixed assets intangible assets and 43613301.74 36273631.65
other long-term assets
Cash paid for investments
Net increase in pledged loans
Net cash paid to acquire
subsidiaries and other business units
Cash paid for other investing
activities 165092806.07
Sub-total of cash outflow from
investing activities 208706107.81 36273631.65
Net cash flows from operating
activities -83646605.14 -36270086.24
III. Cash flows from financing
activities:
Cash received from investors
Including: Cash received from the
investment of minority shareholders
of the subsidiaries
Cash received from borrowings 320000000.00 250000000.00
Cash received from other financing
activities
Sub-total of cash inflow from
financing activities 320000000.00 250000000.00
Cash paid for debt repayments 250000000.00 150000000.00
Cash paid for distribution of
dividends and profits or payment of 164868413.68 110259489.52
interest
Including: Dividends and profits
paid by subsidiaries to minority
49Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
shareholders
Cash paid for other financing
activities 58254091.98 92370343.32
Sub-total of cash flows from financing
activities 473122505.66 352629832.84
Net cash flows from financing
activities -153122505.66 -102629832.84
IV. Effect of exchange rate changes
on cash and cash equivalents -34830.30 -138593.06
V. Net increase in cash and cash
equivalents -100273144.58 205621331.48
Add: opening balance of cash and
cash equivalents 504629153.71 313747463.64
VI. Closing balance of cash and cash
equivalents 404356009.13 519368795.12
Legal Representative: Zhang Xuhua CFO: Song Yaoming Financial Manager: Tian Hui
6. Cash Flow Statement of Parent Company
Unit: RMB
Item Semi-annual 2024 Semi-annual 2023
I. Cash flows from operating
activities:
Cash received from sale of goods
and rendering of services 92269424.38 84192699.46
Refund of taxes and surcharges
Cash received from other
operating activities 1967128778.52 2141372420.70
Sub-total of cash inflow from
operating activities 2059398202.90 2225565120.16
Cash paid for purchase of goods
and rendering of services 9782620.00
Cash paid to and for employees 44398658.47 29190598.81
Taxes and fees paid 12856580.23 5480282.08
Other cash payments relating to
operating activities 1899095301.14 2002201028.42
Sub-total of cash outflow from
operating activities 1966133159.84 2036871909.31
Net Cash Flows from Operating
Activities 93265043.06 188693210.85
II. Cash flows from investing
activities:
Cash received from disinvestment
Cash received from investment
income
Net cash received from disposal of
fixed assets intangible assets and 4741325.47 200.00
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received from other investing
activities
Sub-total of cash inflow from
investing activities 4741325.47 200.00
Cash paid to acquire and construct
fixed assets intangible assets and 1946698.06 4515871.59
50Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
other long-term assets
Cash paid for investments
Net cash paid to acquire
subsidiaries and other business units
Cash paid for other investing
activities
Sub-total of cash outflow from
investing activities 1946698.06 4515871.59
Net cash flows from operating
activities 2794627.41 -4515671.59
III. Cash flows from financing
activities:
Cash received from investors
Cash received from borrowings 320000000.00 250000000.00
Cash received from other financing
activities
Sub-total of cash inflow from
financing activities 320000000.00 250000000.00
Cash paid for debt repayments 250000000.00 150000000.00
Cash paid for distribution of
dividends and profits or payment of 164868413.68 110259489.52
interest
Cash paid for other financing
activities 79409.91 35483644.86
Sub-total of cash flows from financing
activities 414947823.59 295743134.38
Net cash flows from financing
activities -94947823.59 -45743134.38
IV. Effect of exchange rate changes
on cash and cash equivalents 10273.00 109517.02
V. Net increase in cash and cash
equivalents 1122119.88 138543921.90
Add: opening balance of cash and
cash equivalents 308230255.35 274691023.16
VI. Closing balance of cash and cash
equivalents 309352375.23 413234945.06
Legal Representative: Zhang Xuhua CFO: Song Yaoming Financial Manager: Tian Hui
7. Consolidated Statement of Changes in Owner’s Equity
Amount in current period
Unit: RMB
Semi-annual 2024
Equity attributable to owners of the parent company
Other equity Oth Tot
instruments Cap Les er Spe Sur Gen Und Min al
Item Sha ital s: com cial plus eral istri
ority
re Pref Per trea pre Sub inte
own
capi erre pet res sury hen res res
risk but Oth er's
Oth erv pro ed er
- rest
equi
tal d ual er e stoc sive
erv erv total s
stoc bon k inco e es
visi prof ty
ons its
k ds me
1. Balance 415 990 78 19 32 275 17 33 33
at the end 21 15 645 325 23 01 09 33 33
51Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
of the 99 90 53 33 158 04 513 805 805
previous 70. 33. 2.2 5.9 .06 01. 38 75 75
year 00 17 3 3 50 5.7 2.1 2.1
699
Add:
Change in
accounting
policy
Co
rrection of
previous
errors
Ot
her
2. Balance 415 990 78 19 275 17 33 33
at the 21 15 645 325 32 09 33 33
beginning of 99 90 53 33 23
01
04513805805
the current 70. 33. 2.2 5.9 158 01. 38 75 75
year 00 17 3 3 .06 50 5.7 2.1 2.16 9 9
3. Changes
in - - - - -
increase/de -93 54 65
-541151818
crease in 55 078 199
5585207477477
the current 763 83 71
77
527 7.3 20 75 75period ("-" .00 9.2 7.4 .76 6 0.4 5.6 5.6for 1 2 7 6 6
decrease)
-147141141
(I) Total 55 13 56 56
comprehen 77 84 09 09
sive income 527 82. 54. 54..76345858
(II) - -
Contribution - 54 65 17 17
and 93
withdrawal 55
0781996565
763 83 71 115 115of capital by
owners .00
9.27.4.21.21
12
--
1. Common -
stock 93
5464
contributed 55
984340
9066
by owners 763.00 6.4 9.42 2
2. Capital
invested by
holders of
other equity
instruments
3. Share- 906 - 17 17
based 06 859 65 65
payment 7.2 04 115 115
recognized 1 8.00 .21 .21in owners'
52Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
equity
4. Others
---
162162162
(III) Profit 34 34 34
distribution 56 56 56
82.82.82.
818181
1.
Withdrawal
of surplus
reserve
2.
Withdrawal
of general
risk
reserves
3.---
Distribution 162 162 162
to owners 34 34 34
(or 56 56 56
shareholder 82. 82. 82.s) 81 81 81
4. Others
(4) Internal
carry-
forward of
owners'
equity
1. Capital
reserve
transferred
to paid-in
capital (or
share
capital)
2. Surplus
reserve
transferred
to paid-in
capital (or
share
capital)
3. Surplus
reserve
offsetting
losses
4. Changes
in defined
benefit
plans
carried
forward to
retained
53Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
earnings
5. Other
comprehen
sive income
transferred
to retained
earnings
6. Others
541541541
(V) Special 85 85 85
reserves 7.3 7.3 7.3
666
1.
Withdrawal 760 760 760
in the 55 55 55
current 6.4 6.4 6.4
period 0 0 0
2. Utilization - - -
in the 218 218 218
current 69 69 69
period 9.0 9.0 9.04 4 4
(VI) Others
4. Balance 405 936 13 13 275 16 33 33
at the end 86 08 445 747 37 01 94 15 15
of the 42 01 81 80 65 04 306 327 327
current 07. 93. 4.8 8.1 015 01. 18 99 99
period 00 96 1 7 .42 50 5.2 6.5 6.59 3 3
Amount Last Year
Unit: RMB
Semi-annual 2023
Equity attributable to owners of the parent company
Other equity Oth Tot
instruments Cap Les er Spe Sur Gen Und
Min al
Item Sha ital s: com eral istri
ority
re Pref Per trea pre cial plus Sub inte
own
capi erre pet res sury hen res res
risk but Oth er's
Oth pro ed er
- rest equi
tal d ual erv stoc sive erv erver e e es visi prof
total s
stoc bon tyk inco ons its
k ds me
1. Balance 417 1007 50 57 20 275
143131
at the end 62 759 01 79 36 36
of the 79 086 80 39 12 04 706 423 423
previous 60. 64 6.1 589 064 01. 63 49 49
year 00 3.4 6 .89 .91 50 8.5 2.1 2.18 3 5 5
Add:
Change in
accounting
policy
Co
rrection of
54Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
previous
errors
Ot
her
2. Balance 417 10 50 14 31 31
at the 62 07 759 57 20
275
01793636
beginning of 79 086 80 39 12 706 423 423
the current 60. 64 6.1 589 064
04
01.634949
year 00 3.4 6 .89 .91 50 8.5 2.1 2.18 3 5 5
3. Changes
in
increase/de - -37 36 94 735
839393
crease in 05 19 237 275 275
the current 32 30 009 8.0 29 25 25
period ("-" 336 088 .07 9 5.2 4.3 4.3
for .52 .51 3 8 8
decrease)
94 187 196 196(I) Total 39 80 80
comprehen 05 50 00 00
sive income 009.07 67. 76. 76.23 30 30
(II)
Contribution - - - -
and 37 36 102 102
withdrawal 32 30 24 24
of capital by 336 088 8.0 8.0
owners .52 .51 1 1
--
1. Common 17 17 17
stock 007 007 007
contributed 83 83 83
by owners 0.70 0.7 0.70 0
2. Capital
invested by
holders of
other equity
instruments
3. Share- -
based - 20 16 16
payment 37 637 908 908
recognized 29 91 31 31
in owners' 602 9.2 7.1 7.1
equity .11 1 0 0
---
4. Others 27 27 2734. 34. 34.
414141
---
104104104
(III) Profit 15 15 15
distribution 77 77 77
72.72.72.
000000
55Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
1.
Withdrawal
of surplus
reserve
2.
Withdrawal
of general
risk
reserves
3.---
Distribution 104 104 104
to owners 15 15 15
(or 77 77 77
shareholder 72. 72. 72.s) 00 00 00
4. Others
(4) Internal
carry-
forward of
owners'
equity
1. Capital
reserve
transferred
to paid-in
capital (or
share
capital)
2. Surplus
reserve
transferred
to paid-in
capital (or
share
capital)
3. Surplus
reserve
offsetting
losses
4. Changes
in defined
benefit
plans
carried
forward to
retained
earnings
5. Other
comprehen
sive income
transferred
to retained
earnings
6. Others
56Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
735735735
(V) Special 19 19 19
reserves 8.0 8.0 8.0
999
1.
Withdrawal 816 816 816
in the 61 61 61
current 8.9 8.9 8.9
period 2 2 2
2. Utilization - - -
in the 81 81 81
current 420 420 420
period .83 .83 .83
(VI) Others
4. Balance 417 10 15 32 32
at the end 62 03
4715275
354129144
2701622929
of the 79 71 59 47 04 943 698 698
current 60. 30 7.6 8.9 263 01. 93 74 74
period 00 6.9 5 6 .00 50 3.7 6.5 6.56 6 3 3
Legal Representative: Zhang Xuhua CFO: Song Yaoming Financial Manager: Tian Hui
8. Variation of equity attributable to owners of the parent company
Amount in current period
Unit: RMB
Semi-annual 2024
Other equity Other
instruments
Share Capit Less: comp Speci Surpl
Undis Total
Item
capita Perpe al treas rehen al us
tribut owne
Prefe
l tual reser ury sive reser reser
ed Other
rred Other ve stock incom ve ves profit
r's
stock bond
equity
s e
s
1. Balance
at the end 4152 9930 7864 2750 1063 2668
of the 1997 3752 5532 1040 629 251
previous 0.00 8.98 .23 1.50 483.3 851.6
year 5 0
Add:
Change in
accounting
policy
Co
rrection of
previous
errors
Ot
her
2. Balance 4152 9930 7864 2750 1063 2668
at the 1997 3752 5532 1040 629 251
beginning of 0.00 8.98 .23 1.50 483.3 851.6
the current 5 0
57Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
year
3. Changes
in
increase/de - - - - -
crease in 9355 5407 6519 1484 1466
the current 763. 8839 9717 1098 4586
period ("-" 00 .21 .42 3.16 7.95
for
decrease)
(I) Total 1393 1393
comprehen 4699 4699
sive income .65 .65
(II)
Contribution - - -
and 9355 5407 6519 1765
withdrawal 763. 8839 9717 115.of capital by 00 .21 .42 21
owners
1. Common - - -
stock 9355 5498 6434
contributed 763. 4906 0669
by owners 00 .42 .42
2. Capital
invested by
holders of
other equity
instruments
3. Share-
based
payment 9060 - 1765
recognized 67.21 8590 115.in owners' 48.00 21
equity
4. Others
--
(III) Profit 1623 1623
distribution 4568 4568
2.812.81
1.
Withdrawal
of surplus
reserve
2.
Distribution - -
to owners 1623 1623
(or 4568 4568
shareholder 2.81 2.81
s)
3. Others
(4) Internal
carry-
forward of
owners'
equity
58Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
1. Capital
reserve
transferred
to paid-in
capital (or
share
capital)
2. Surplus
reserve
transferred
to paid-in
capital (or
share
capital)
3. Surplus
reserve
offsetting
losses
4. Changes
in defined
benefit
plans
carried
forward to
retained
earnings
5. Other
comprehen
sive income
transferred
to retained
earnings
6. Others
(V) Special
reserves
1.
Withdrawal
in the
current
period
2. Utilization
in the
current
period
(VI) Others
4. Balance
at the end 4058 9389 1344 2750 9152 2521
of the 6420 5868 5814 1040 1850 605
current 7.00 9.77 .81 1.50 0.19 983.6
period 5
Amount Last Year
Unit: RMB
59Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Semi-annual 2023
Other equity Other
instruments Capit Less: comp Speci Surpl Undis
Item Share tribut
Total
capita al treas rehen al us ownePrefe Perpe
l tual reser ury sive reser reser
ed Other r's
rred bond Other ve stock incom ve ves
profit
s equitystock s e
1. Balance
at the end 4176 1010 2595
of the 2796 917
507527509430
776.1980610401716
813
previous 0.00 498.4
year 9.161.506.881
Add:
Change in
accounting
policy
Co
rrection of
previous
errors
Ot
her
2. Balance
at the 4176 1010 5075 2750 9430 2595
beginning of 2796 917776.1 9806 1040 1716
813
the current 0.00 9 .16 1.50 6.88
498.4
year 1
3. Changes
in
increase/de - - - -
crease in 4684 3630 8348 8454
the current 973. 088. 9928 4813
period ("-" 42 51 .49 .40
for
decrease)
(I) Total 2066 2066
comprehen 7843 7843
sive income .51 .51
(II)
Contribution - - -
and 4684 3630 1054
withdrawal 973. 088. 884.of capital by 42 51 91
owners
1. Common -
stock 17007830 1700contributed 7830
by owners .70 .70
2. Capital
invested by
holders of
other equity
instruments
60Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
3. Share-
based - -
payment 4682 2063 1595
recognized 239. 7919 5680
in owners' 01 .21 .20
equity
--
4. Others 2734 2734.41.41
--
(III) Profit 1041 1041
distribution 5777 5777
2.002.00
1.
Withdrawal
of surplus
reserve
2.
Distribution - -
to owners 1041 1041
(or 5777 5777
shareholder 2.00 2.00
s)
3. Others
(4) Internal
carry-
forward of
owners'
equity
1. Capital
reserve
transferred
to paid-in
capital (or
share
capital)
2. Surplus
reserve
transferred
to paid-in
capital (or
share
capital)
3. Surplus
reserve
offsetting
losses
4. Changes
in defined
benefit
plans
carried
forward to
retained
61Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
earnings
5. Other
comprehen
sive income
transferred
to retained
earnings
6. Others
(V) Special
reserves
1.
Withdrawal
in the
current
period
2. Utilization
in the
current
period
(VI) Others
4. Balance
at the end 4176 1006232 4712 2750 8595
2511
of the 2796 268
current 0.00 802.7
971710402723
7.651.508.39
685.0
period 1
Legal Representative: Zhang Xuhua CFO: Song Yaoming Financial Manager: Tian Hui
3. Company profile
1. Company's registered location organizational form and headquarters address
FIYTA Precision Technology Co. Ltd. (hereinafter referred to as the "Company") was restructured and
established by "Shenzhen FIYTA Timing Industry Company" on December 25 1992 with the approval of the SFBF
[1992] No. 1259 Document of the General Office of the People's Government of Shenzhen Municipality by Shenzhen
Industry and Trade Center of China Aviation Technology Import & Export (later renamed as "China Aviation
Technology Shenzhen Co. Ltd.") as the initiator. The company was listed on the Shenzhen Stock Exchange on June 3
1993 and now holds a business license with a unified social credit code of 91440300192189783K.
After the distribution of bonus shares placement of new shares capital stock conversion and further issue of new
shares over the years as of June 30 2024 the company has issued a total of 405864207 shares in total with a
registered capital of RMB405864207. The registered address is FIYTA Technology Building Gaoxin South 1st Road
Nanshan District Shenzhen City Guangdong Province. The controlling shareholder is AVIC International Holdings
Limited and the actual controller is Aviation Industry Corporation of China LTD.
2. Business nature and main operating activities of the company
The business nature and main operating activities of the Company and its subsidiaries include: general business
items: sales of clocks and watches; Manufacturing of clocks and timekeeping instruments; Sales of clocks watches
and timekeeping instruments; Jewelry wholesale; Jewelry retail; Manufacturing of wearable smart devices; Sales of
wearable smart devices; leasing of non-residential real estate; professional design services; Sales of household
appliances; Sales of mobile satellite communication terminals. (except for projects subject to approval by laws
business activities independently carried out according to law with business license) Licensed items: property
62Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
management; Goods import and export. (Any business which requires to be approved by law can only be carried out
after approval of relevant authorities. Specific business items are subject to the approval documents or licenses issued
by these authorities.)
3. Scope of the consolidated financial statements
There are 12 subsidiaries included in the scope of consolidation in the current period. See Note 10 Equity in other
entities for details. There is no change in the entities included in the scope of the consolidated financial statements for
the current period compared to the previous period.
4. Approval on the issuance of the financial statements
These financial statements were approved for issuance by the Company's Director on Aug. 19 2024.
4. Preparation Basis of Financial Statements
1. Basis of preparation
The Company recognized and measured transactions and events that have actually occurred in accordance with the
Basic Standard for Enterprise Accounting issued by the Ministry of Finance specific enterprise accounting standards
application guidelines interpretations and other relevant provisions (collectively referred to as 'Enterprise Accounting
Standards). On this basis combined with the provisions of No.15 Rules on Information Disclosure and Compilation of
Companies Offering Securities to the Public-General Provisions on Financial Reports (revised in 2023) by China
Securities Regulatory Commission the Company prepared the financial statements.
2. Going concern
The Company evaluated its ability of going concern for 12 months from the end of the reporting period and found no
matters or circumstances that have serious doubts about the ability of going concern. Therefore the financial
statements were prepared on the assumption of going concern.
5. Important accounting policies and estimates
Tips on specific accounting policies and accounting estimates:
1. The Company determines specific accounting policies and accounting estimates according to the
characteristics of production and operation mainly reflected in the method of expected credit loss of receivables
(Notes V.12 Notes V.13 Notes V.15) the valuation method of inventories (Notes V.17) the depreciation of investment
properties fixed assets and intangible assets (Notes V.23 Notes V.24 Notes V.29) income (Notes V.37) etc.
2. The Company continuously evaluates the important accounting estimates and key assumptions adopted based
on historical experience and other factors including reasonable expectations of future events. The following significant
accounting estimates and key assumptions if subject to substantial changes may have a significant impact on the
carrying amounts of assets and liabilities in future accounting periods:
(1) Provision for bad debts of accounts receivable and other receivables is made according to the accounting
standards. The provision for impairment of accounts receivable and other receivables should be estimated by
describing the expected credit losses of accounts receivable and others receivable judged by the management. If any
events or changes in circumstances indicate that the Company may not be able to recover the relevant balances it is
necessary to use estimates to accrue provisions for accounts receivable and other receivables. If the expected figure
63Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
is different from the original estimate the difference will affect the book value of accounts receivable and other
receivables as well as the impairment provision during the change in estimate.
(2) Estimation of inventory impairment. It shall describe that the inventories are measured at the lower of cost and
net realizable value on the balance sheet date and the calculation of net realizable value requires the use of
assumptions and estimates. If management revises the estimated selling prices and the costs and expenses to be
incurred upon completion it will affect the estimated net realizable value of inventories. This difference will impact the
provision for inventory write-downs.
(3) Estimation of impairment of long-term assets. It should be described that when the management judges
whether there is impairment of long-term assets it mainly evaluates and analyzes from the following aspects: (1)
whether the events that affect the impairment of assets have occurred; (2) Whether the present value of the cash flows
expected to be obtained due to the continuous use or disposal of the assets is lower than the book value of the assets;
And (3) whether the important assumptions used in the present value of expected future cash flows are appropriate.If the assumptions used by the company to determine impairment such as profitability discount rate and growth
rate assumptions in the present value method of future cash flows change this may significantly impact the present
value used in impairment testing and result in the impairment of the company's long-term assets.
(4) Depreciation and amortization. The Company's estimates of the estimated useful life and estimated net
residual value of the investment properties fixed assets and intangible assets are based on the actual useful life and
net residual value of the assets with similar nature and functions in the past. During the use of the assets the
economic environment technological environment and other environments in which the assets are located may have a
greater impact on the useful life and estimated net residual value of the assets. If there is any difference between the
estimated useful life and net residual value of the assets and the original estimates the management will make
appropriate adjustments.
(5) Share-based payment. On each balance sheet date within the waiting period the management makes the best
estimate of the number of equity instruments expected to vest is revised based on subsequent information such as
changes in the number of employees eligible for vesting. If there is any difference between the change in the number
of employees with exercisable rights in the current year and the original estimates the management will make
appropriate adjustments.
(6) Deferred tax assets Deferred tax assets should be recognized for all unused tax losses to the extent that it is
probable that there will be sufficient taxable profits to offset the losses. This requires the management to use a lot of
judgment to estimate the time and amount of future taxable profits combined with tax planning strategies to determine
the amount of deferred tax assets that should be recognized.
(7) Income tax. It should be described in normal business activities there are uncertainties in the final tax
treatment of many transactions and matters. Significant judgments need to be made when accruing income tax. If
there is a difference between the final recognized outcome for these taxes and the initial received amount it will have
an impact on the above-mentioned taxes in the final recognition period.
1. Statement of Compliance with Accounting Standard for Business Enterprises
The financial statement prepared by the Company meets the requirements of accounting standards for
enterprises and authentically and completely reflects financial status business performance cash flow and other
relative information on the Company during the reporting period.
2. Accounting period
An accounting year is from January 1 to December 31 of the Gregorian calendar.
64Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
3. Operating cycle
The operating cycle refers to the period from the acquisition of assets for processing to the realization of cash or
cash equivalents. The Company takes 12 months as an operating cycle and takes it as the classification standard for
the liquidity of assets and liabilities.
4. Functional currency
The Company and its domestic subsidiaries use RMB as its functional currency. FIYTA (HONG KONG) LIMITED
an overseas subsidiary of the Company determines HKD as its functional currency according to the currency in the
main economic environment in which it operates. Montres Chouriet SA a subsidiary of FIYTA (HONG KONG)
LIMITED determines Swiss franc as its functional currency based on the currency in the main economy environment
in which it operates which is converted into RMB when preparing the financial statements. The currency adopted by
the Company for the preparation of the financial statements is RMB.
5. Determination method and selection basis of materiality criteria
Item Materiality criteria
Accounts receivable with significant amount reversed
from provision for bad debts or recovered in the current Single ending balance of more than RMB500000
period
Significant other payable with an aging of over one year Single ending balance of more than RMB1000000
6. Accounting treatment methods of business merger under the common control and not
under the common control
1. If the terms conditions and economic impact of each transaction in the process of step-by-step
business combination meet one or more of the following conditions multiple transactions will be taken as a
package transaction for accounting treatment.
(1) These transactions are concluded at the same time or under the consideration of mutual influence;
(2) These transactions collectively achieve a complete commercial result;
(3) The occurrence of one transaction depends on the occurrence of at least one other transaction;
(4) A transaction is uneconomical on its own but economical when considered together with other transactions.
2. Business combination under common control
The assets and liabilities acquired by the Company in business combination shall be measured according to the
book value of the assets and liabilities (including the goodwill formed by the acquisition of the merged party by the
ultimate controller) of the merged party on the combination date in the consolidated financial statements of the ultimate
controller. For the difference between the book value of the net assets acquired in the merger and the book value of
the merger consideration paid (or the total par value of the issued shares) the stock premium in the capital reserve
shall be adjusted. If the stock premium in the capital reserve is insufficient to cover the difference the retained
earnings shall be adjusted.If there is contingent consideration and it is necessary to recognize estimated liabilities or assets the capital
reserve (capital premium or stock premium) shall be adjusted based on the difference between the amount of the
estimated liabilities or assets and the subsequent settlement amount of the contingent consideration. If the capital
reserve is insufficient the retained earnings shall be adjusted.
65Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
For the business combination finally realized through multiple transactions which belongs to a package
transaction the transactions shall be taken as a transaction that obtains control for accounting treatment; If it does not
belong to a package transaction the capital reserve shall be adjusted based on the difference between the initial
investment cost of the long-term equity investment and the book value of the long-term equity investment before the
merger plus the book value of the newly paid consideration of the shares on the merger date; if the capital reserve is
insufficient to cover the difference the retained earnings shall be adjusted. For the equity investment held before the
merger date other comprehensive income recognized due to accounting by equity method or accounting by financial
instruments and measurement standards will not subject to accounting treatment temporarily until the investment is
disposed of on the same basis as the related assets or liabilities directly disposed by the investee; Other changes in
the owner's equity in the net assets of the investee except net profit or loss and other comprehensive income and
profit distribution which are recognized by the equity method will not subject to accounting treatment temporarily until
the investment is transferred to the current profit and loss.
3. Business combination not under common control
Acquisition date refers to the date when the Company actually obtains the control over the acquiree that is the
date when the control over the net assets or production and operation decisions of the acquiree is transferred to the
Company. When the following conditions are met at the same time the Company generally considers that the control
has been transferred:
* The business combination contract or agreement has been approved by the company's internal authority.* Where the business combination needs to be examined and approved by the relevant national competent
authorities the approval has been obtained.* The necessary formalities for the transfer of property rights have been handled.* The Company has paid most of the merger price and has the ability and plan to pay the remaining amount.* The Company has actually controlled the financial and operating policies of the acquiree and enjoys the
corresponding benefits and bears the corresponding risks.On the acquisition date the Company measures the assets paid as the consideration for business combination
and the liabilities incurred or assumed at their fair values. The difference between the fair value and the book value is
recognized in the current profit or loss.The Company recognizes as goodwill the excess of the merger costs over the fair value of the identifiable net
assets acquired in the merger; The excess of the fair value of the identifiable net assets acquired over the cost of the
acquisition after review should be recognized in the current period's profit or loss.If the business combination not under common control realized step by step through multiple transactions belongs
to a package transaction the transactions shall be taken as a transaction that obtains control for accounting treatment;
If it does not belong to a package transaction and the equity investments held before the merger date is accounted for
by the equity method the initial investment cost is the sum of the book value of the equity investment in the acquiree
held before the acquisition date and the additional investment cost on the acquisition date; Other comprehensive
income recognized from equity investments accounted for by the equity method before the acquisition date is
accounted for on the same basis as the direct disposal of related assets or liabilities by the investee. If the equity
investment held before the merger date is accounted for under the financial instruments recognition and measurement
guidelines the initial investment cost on the merger date is the sum of the fair value of the equity investment on the
merger date plus the additional investment cost. The difference between the fair value and the book value of the
previously held equity and the cumulative fair value changes previously recognized in other comprehensive income
shall be all transferred to the investment income of the current period on the merger date.
4. Costs of business combination
66Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Intermediary expenses such as audit legal services evaluation and consultation and other directly related
expenses incurred for business combination are recognized in the current profit and loss upon occurrence.Transaction costs for issuing equity securities due to business combination can be directly deducted from equity.
7. Control criteria and preparation method of consolidated financial statements
1. Control criteria
Control refers to the power the investor has over the investee enjoying variable returns by participating in relevant
activities of the investee and having the ability to influence the amount of returns by using its power over the investee.The Company judges its control over the investee based on a comprehensive consideration of all relevant facts
and circumstances. Should changes in relevant facts and circumstances alter the elements involved in the definition of
control the Company will make re-assessment. Relevant facts and circumstances mainly include:
(1) The establishment purpose of the investee.
(2) The investee's relevant activities and how decisions about those activities are made.
(3) Whether the rights enjoyed by the investor enable it to dominate the related activities of the investee at present.
(4) Whether the investor enjoys variable returns by participating in the related activities of the investee.
(5) Whether the investor has the ability to use the power over the investee to influence its return amount.
(6) The relationship between investors and other parties.
2. Scope of consolidation
The scope of the Company's consolidated financial statements is based on control and all subsidiaries (including
individual entities controlled by the Company) are included in the consolidated financial statements.
3. Combination procedures
The Company prepares consolidated financial statements based on the financial statements of itself and its
subsidiaries and other relevant information. In preparing consolidated financial statements the Company regards the
whole enterprise group as an accounting entity and reflects the overall financial position operating results and cash
flow of the enterprise group according to the recognition measurement and presentation requirements of relevant
accounting standards for business enterprises and unified accounting policies.The accounting policies and accounting periods adopted by all subsidiaries included in the consolidation scope of
consolidated financial statements are consistent with those of the Company. If the accounting policies and accounting
periods adopted by subsidiaries are inconsistent with those of the Company necessary adjustments shall be made
based on those of the Company when preparing consolidated financial statements.When preparing consolidated financial statements the impact of internal transactions between the Company and
its subsidiaries and among the subsidiaries themselves on the consolidated balance sheet consolidated income
statement consolidated statement of cash flows and consolidated statement of changes in shareholders' equity shall
be offset. If the recognition of the same transaction from the perspective of consolidated financial statements of
enterprise groups is different from that of the Company or its subsidiaries as accounting entities the transaction shall
be adjusted from the perspective of enterprise groups.The owner's equity of subsidiaries the current net profit and loss and the share belonging to minority shareholders
in the current comprehensive income are listed separately under the owner's equity item in the consolidated balance
sheet the net profit item in the consolidated income statement and the total comprehensive income item. If the current
period losses shared by the minority shareholders of a subsidiary exceed the portion of owners' equity held by the
minority shareholders at the beginning of the period the excess is offset against the minority shareholders' equity.For subsidiaries acquired through business combinations under common control their financial statements shall
be adjusted based on the book value of assets and liabilities (including goodwill formed by the ultimate controller's
acquisition of the subsidiary) as reflected in the financial statements of the ultimate controller.
67Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
For subsidiaries acquired through business combinations not under common control their financial statements
shall be adjusted based on the fair value of identifiable net assets on the acquisition date.
(1) Addition of subsidiaries or businesses
During the reporting period if subsidiaries or businesses are added due to business combinations under common
control the opening balances of the consolidated balance sheet shall be adjusted. The incomes expenses and profits
from the beginning of the period to the end of the reporting period for the subsidiaries or businesses merged shall be
included in the consolidated income statement. The cash flows of subsidiaries or businesses from the beginning of the
current period to the end of the reporting period shall be included into the statement of cash flows and the related
items of the comparative statements shall be adjusted as if the reporting entity had existed since the point of control by
the ultimate controller.If control over an investee under common control is achieved due to additional investments it is assumed that all
parties involved in the consolidation existed in their current state from the time the ultimate controller began to exercise
control. The equity investment held before the acquisition of the control right of the merged party the relevant profit
and loss recognized from the date when the original equity is acquired or the merge party and the merged party are
under common control (whichever is later) to the merger date other comprehensive income and other changes in net
assets are used to respectively offset the initial retained income or current profit and loss during the comparative
statement period.If a subsidiary or business is added through a business combination under different control during the reporting
period the opening balances of the consolidated statement of financial position are not adjusted; the incomes
expenses and profits of the subsidiary or business from the acquisition date to the end of the reporting period shall be
included in the consolidated income statement; the cash flows of the subsidiary or business from the acquisition date
to the end of the reporting period shall be included in the statement of cash flows.If the investee not under common control can be controlled due to additional investment the Company will re-
measure the equity of the investee held before the acquisition date according to the fair value of the equity on the
acquisition date and the difference between the fair value and its book value will be included in the current investment
income. For equity interests in the acquiree held before the acquisition date that involve other comprehensive income
and changes in other owners' equity under the equity method accounting excluding net gains or losses other
comprehensive income and profit distribution the related other comprehensive income and changes in other owners'
equity are reclassified to investment income of the current period on the acquisition date except for other
comprehensive income arising from remeasurement of the defined benefit plan net liability or net assets of the
investee.
(2) Disposal of subsidiaries or businesses
1) General methods
During the reporting period if the Company disposes of a subsidiary or business the incomes expenses and
profits from the beginning of the period to the date of disposal are included in the consolidated income statement; The
cash flows from the beginning of the period to the date of disposal of the subsidiary or business are included in the
consolidated statement of cash flows.When losing control over an investee due to the disposal of a partial equity investment or other reasons the
Company re-measures the remaining equity investment at its fair value on the date of loss of control. The sum of the
consideration obtained from the disposal of the shares and the fair value of the remaining shares minus the difference
between the share of the original subsidiary's net assets that shall be continuously calculated from the acquisition date
or the merger date and the sum of goodwill is included in the investment income in the current period when the control
right is lost. Other comprehensive income related to the equity investment in the original subsidiary or changes in
other owners' equity excluding net loss other comprehensive income and profit distribution are reclassified as current
68Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
period investment income upon loss of control except for other comprehensive income arising from the
remeasurement of the net liability or net assets of the defined benefit plan of the investee.
2) Step-by-step disposal of a subsidiary
When disposing of equity investments in a subsidiary in multiple transactions until control is lost the terms
conditions and economic effects of each transaction in disposing of the equity investments in the subsidiary typically
indicate that the multiple transactions shall be accounted for as a package transaction if they meet one or more of the
following situations:
A. These transactions are concluded at the same time or under the consideration of mutual influence;
B. These transactions collectively achieve a complete commercial result;
C. The occurrence of one transaction depends on the occurrence of at least one other transaction;
D. A transaction is uneconomical on its own but economical when considered together with other transactions.When transaction related to the disposal of equity investments in subsidiaries until control is lost belongs to a
package transaction the Company accounts for the transactions as a disposal of a subsidiary and loss of control;
However before the loss of control the difference between each disposal consideration and the corresponding share
of the subsidiary's net assets is recognized as other comprehensive income in the consolidated financial statements
and is reclassified to profit or loss of the period when the control is lost.If the transaction related to the disposal of equity investments in subsidiaries until control is lost does not belong to
a package transaction they are accounted for according to the policy for partial disposals of equity investments in
subsidiaries without losing control; At the time of loss of control the accounting treatment is performed in the same
way as a general disposal of a subsidiary.
(3) Acquisition of minority interests in subsidiaries
The Company shall adjust the stock premium in the capital reserve in the consolidated balance sheet for the
difference between the newly acquired long-term equity investment due to the acquisition of minority shares and the
share of net assets that shall be continuously calculated by the subsidiaries from the acquisition date (or merger date)
according to the new shareholding ratio. If the stock premium in the capital reserve is insufficient the retained earnings
shall be adjusted.
(4) Partial disposal of equity investments in subsidiaries without losing control
In cases of partial disposal of long-term equity investments in subsidiaries without losing control the difference
between the disposal consideration and the corresponding share of the subsidiary's net assets continuously calculated
from the acquisition date or the merger date is adjusted in the stock premium within the capital reserve in the
consolidated balance sheet. If the share premium in the capital reserve is insufficient retained earnings shall be
adjusted.
8. Classification of joint venture arrangements and accounting treatment of joint operations
1. Classification of joint venture arrangements
According to the structure legal form terms agreed in the joint venture arrangement and other relevant facts and
circumstances the Company divides the joint venture arrangement into joint operation and joint venture.Joint venture arrangements not reached through a separate entity shall be classified as joint operation; Joint
venture arrangements reached through a separate entity are usually divided into joint ventures; However if there is
strong evidence that any of the following conditions is met and the joint venture arrangement complies with the
relevant laws and regulations it shall be classified as a joint operation:
The legal form of the joint venture arrangement indicates that the joint venture shall respectively enjoy the rights
and assume the obligations for the relevant assets and liabilities in the arrangement.
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The contractual terms of the joint venture arrangement stipulate that the joint venture shall respectively enjoy the
rights and assume the obligations for the relevant assets and liabilities in the arrangement.Other relevant facts and circumstances indicate that the joint venture has rights to the assets and obligations for
the liabilities related to the arrangement such as when the joint venture enjoys almost all of the output related to the
joint arrangement and the settlement of liabilities depends continuously on the support of the joint venture.
2. Accounting treatment for joint operation
The Company recognizes the following items related to the Company in the share of interests in joint operation
and carries out accounting treatment in accordance with the relevant accounting standards for business enterprises:
Recognize the assets held individually and the assets held jointly based on their shares;
Recognize the liabilities assumed individually and the liabilities undertaken jointly based on their shares;
Recognize the income generated from the sale of its share of joint operation output;
Recognize the income generated from the sale of output in the joint operation based on their shares;
Recognize the expenses incurred individually and the expenses incurred in joint operation based on their shares.The Company recognizes only the portion of gains and losses attributable to other participants in the joint
operation when contributing or selling assets (except for those constituting a business) to the joint operation until such
assets are sold to a third party. If an impairment loss occurs on assets invested or sold that meets the provisions of
"Accounting Standard for Business Enterprises No. 8 – Asset Impairment" the company will fully recognize the loss.The Company recognizes only the portion of gains and losses attributable to other participants in the joint
operation when acquiring assets (except for those constituting a business) from the joint operation until such assets
are sold to a third party. If an impairment loss occurs on assets purchased that meets the provisions of "Accounting
Standard for Business Enterprises No. 8 – Asset Impairment" the company will fully recognize the loss.If the Company does not have joint control over the joint operation but enjoys the relevant assets and bears the
relevant liabilities of the joint operation accounting should still be conducted according to the above principles.Otherwise accounting should be conducted in accordance with the relevant enterprise accounting standards.
9. Recognition criteria for cash and cash equivalents
In preparing the cash flow statement the Company recognizes its cash on hand and the deposits that can be used for
payment at any time. Investments that meet the four conditions of short-term maturity (generally within three months
from the acquisition date) high liquidity easy conversion into a known amount of cash and minimal risk of change in
value as cash equivalents.
10. Foreign currency transactions and conversion of foreign currency financial statements
1. Foreign currency transactions
Foreign currency transactions are initially recorded at the spot exchange rate of the transaction date when initially
recognized.On the balance sheet date foreign currency monetary items are converted at the spot exchange rate of the
balance sheet date. The resulting exchange differences except for those arising from foreign currency borrowings
related to the acquisition or construction of assets meeting the capitalization criteria which are treated in accordance
with the principle of borrowing cost capitalization are all recognized in the current profit or loss. Foreign currency non-
monetary items measured at historical cost are still converted at the spot exchange rate of the transaction date
without changing their recorded amount in the functional currency.Foreign currency non-monetary items measured at fair value are converted at the spot exchange rate of the fair
value determination date. The difference between the converted amount in the functional currency and the original
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recorded amount in the functional currency is treated as a fair value change (including changes of exchange rate) and
is recognized in the current profit or loss or as other comprehensive income.
2. Foreign currency financial statements
Assets and liabilities in the balance sheet are converted at the spot exchange rate of the balance sheet date;
Equity items except for the "undistributed profits" item are converted at the spot exchange rate at the time of
occurrence. The income and expense items in the income statement are converted at the current average exchange
rate of the transaction date. The exchange differences arising from the conversion of foreign currency financial
statements as described above are recognized in other comprehensive income.When disposing of a foreign operation the exchange differences related to that foreign operation and presented in
other comprehensive income items in the balance sheet are transferred from other comprehensive income items to the
current profit or loss; In the case of disposing of a part of an equity investment or for other reasons that lead to a
reduction in the ownership interest in a foreign operation without losing control over it the exchange differences
related to the partial disposal of the foreign operation are attributed to minority interests and are not transferred to the
current profit or loss. When disposing of a portion of equity in overseas operations that are joint ventures or associates
the foreign currency translation differences related to the overseas operations are transferred to the disposal period's
profit or loss in proportion to the disposal scale.
11. Financial instruments
The Company recognizes financial assets or financial liabilities when it becomes a party to the financial instrument
contract.The effective interest method is the calculation of the amortized cost of financial assets or financial liabilities and
the allocation of interest income or interest expense over the accounting periods.The effective interest rate is the rate used to discount the estimated future cash flows of financial assets or
financial liabilities over the expected life to the book value of the financial asset or the amortized cost of the financial
liability. In determining the effective interest rate the expected cash flows are estimated based on all contractual terms
of the financial asset or financial liability (such as prepayment extension call options or other similar options) without
considering expected credit losses.The amortized cost of financial assets or financial liabilities is the initial recognition amount minus principal
repayments plus or minus the cumulative amortization of the difference between the initial recognition amount and the
maturity amount using the effective interest method less any cumulative impairment loss provision (applicable only to
financial assets).
1. Classification recognition and measurement of financial assets
The Company classifies financial assets into the following three categories based on the business model for
managing the financial assets and the contractual cash flow characteristics of the financial assets:
A. Financial assets measured at amortized cost.B. Financial assets measured at fair value with changes recognized in other comprehensive income.C. Financial assets measured at fair value with changes recognized in profit or loss.Financial assets are initially measured at fair value. However receivables from the sale of goods or provision of
services that do not include a significant financing component or consider financing components of not more than one
year are initially measured at the transaction price.For financial assets measured at fair value with changes recognized in profit or loss related transaction costs are
directly recognized in profit or loss. For other categories of financial assets related transaction costs are included in
their initial recognition amount.
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Subsequent measurement of financial assets depends on their classification. Reclassification of all affected
financial assets occurs only when the Company changes its business model for managing financial assets.
1) Financial assets measured at amortized cost
Financial assets whose contractual terms generate cash flows on specified dates that are solely payments of
principal and interest on the outstanding principal amount and are managed with the objective of collecting contractual
cash flows are classified by the Company as financial assets measured at amortized cost. The Company's financial
assets classified at amortized cost include cash notes receivable accounts receivable and other receivables.The Company recognizes interest income on such financial assets using the effective interest method measures
them subsequently at amortized cost and includes any impairment losses or gains or losses on de-recognition or
modification in profit or loss. Except in the following situations the Company calculates interest income based on the
actual interest rate multiplied by the financial asset's book value:
A. For financial assets that have incurred credit impairment upon acquisition or origination the Company
calculates interest income from the initial recognition based on the amortized cost of the financial asset and the
effective interest rate adjusted for credit.B. For financial assets that have not incurred credit impairment upon acquisition or origination but subsequently
become credit-impaired the Company calculates interest income in subsequent periods based on the amortized cost
and the effective interest rate of the financial asset. If the financial instrument is no longer credit-impaired in
subsequent periods due to an improvement in credit risk the Company calculates interest income by multiplying the
effective interest rate by the book value of the financial asset.
2) Financial assets measured at fair value with changes recognized in other comprehensive income
If the contractual terms of financial assets require cash flows on a specified date that are solely payments of
principal and interest on the principal amount outstanding and the business model for managing the financial asset is
both to collect contractual cash flows and to sell the financial asset then the Company classifies the financial asset as
measured at fair value with changes recognized in other comprehensive income.The Company recognizes interest income on such financial assets using the effective interest method. Apart from
interest income impairment losses and foreign exchange gains or losses recognized in profit or loss other fair value
changes are recognized in other comprehensive income. When the financial asset is de-recognized the cumulative
gains or losses previously recognized in other comprehensive income are reclassified from other comprehensive
income to profit or loss.Financial assets measured at fair value with changes recognized in other comprehensive income such as trade
receivables and accounts receivable are reported as receivables financing and other such financial assets are
reported as other debt investments. Among them other debt investments maturing within one year from the balance
sheet date are reported as non-current assets due within one year and other debt investments with original maturities
within one year are reported as other current assets.
3) Financial assets designated at fair value with changes recognized in other comprehensive income
At initial recognition the Company may irrevocably designate non-trading equity instrument investments based on
a single financial asset as measured at fair value through other comprehensive income.The fair value changes of such financial assets are recognized in other comprehensive income without the need
for impairment provisions. When the financial asset is de-recognized the accumulated gains or losses previously
recognized in other comprehensive income are reclassified to retained earnings. During the period the Company holds
the equity instrument investment dividend income is recognized and included in the current profit or loss when the
Company's right to receive dividends is established the economic benefits related to the dividends are likely to flow
into the Company and the amount of dividends can be reliably measured. The Company reports such financial assets
under other equity instrument investments.
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An equity instrument investment that meets one of the following conditions is classified as financial assets
measured at fair value through profit or loss: The primary purpose of acquiring the financial asset is for sale in the near
term; At initial recognition it is part of an identifiable financial asset group under centralized management and there is
objective evidence indicating the existence of a short-term profit pattern recently; It is a derivative instrument
(excluding those meeting the definition of a financial guarantee contract and those designated as effective hedging
instruments).
4) Classified as financial assets measured at fair value through profit or loss
Financial assets that do not meet the conditions for measurement at amortized cost or at fair value through other
comprehensive income and are not designated as measured at fair value through other comprehensive income are
classified as measured at fair value through profit or loss.Such financial assets are subsequently measured at fair value. Gains or losses from changes in fair value as well
as dividends and interest income related to such financial assets are included in the current profit and loss.The Company shall present such financial assets in the items of transactional financial assets and other non-
current financial assets according to their liquidity.
5) Financial assets designated to be measured by fair value through current profit and loss
At initial recognition in order to eliminate or significantly reduce accounting mismatches the Company may
irrevocably designate financial assets as financial assets measured at fair value through current profit or loss on the
basis of individual financial asset.If a hybrid contract contains one or more embedded derivative instruments and its master contract does not
belong to the above financial assets the Company can designate it as a whole as a financial instrument measured at
fair value through current profit and loss. Except for the following circumstances:
A. The embedded derivative instruments will not have a significant change in the cash flows of the hybrid contract.B. When determining whether a similar hybrid contract needs to be split for the first time it can be made clear that
the embedded derivatives contained therein should not be split with little analysis. For example the prepayment right
embedded in the loan allows the holder to prepay the loan at an amount close to the amortized cost and the
prepayment right does not need to be split.Such financial assets are subsequently measured at fair value. Gains or losses from changes in fair value as well
as dividends and interest income related to such financial assets are included in the current profit and loss.The Company shall present such financial assets in the items of transactional financial assets and other non-
current financial assets according to their liquidity.
2. Classification recognition and measurement of financial liabilities
The Company classifies the financial instrument or its components as financial liabilities or equity instruments at
initial recognition based on the contractual terms of the issued financial instruments and their economic substance
rather than merely legal form in conjunction with the definitions of financial liabilities and equity instruments. Financial
liabilities are classified at initial recognition as: financial liabilities measured at fair value through profit or loss other
financial liabilities and derivatives designated as effective hedging instruments.Financial liabilities are measured at fair value at initial recognition. For financial liabilities measured at fair value
through profit or loss the relevant transaction costs are directly included in the current profit or loss; For other
categories of financial liabilities related transaction costs are included in the initially recognized amount.Subsequent measurement of financial liabilities depends on their classification:
1) Financial liabilities measured at fair value through profit or loss.
This category includes trading financial liabilities (including derivatives that are financial liabilities) and those
designated at initial recognition as measured at fair value through profit or loss.
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Financial liabilities is considered trading if it is incurred primarily for the purpose of selling or re-acquiring in the
near term; Or if it is part of an identifiable portfolio of financial instruments that the enterprise manages together and
there is evidence of a recent actual pattern of short-term profit-taking. Belongs to derivative instruments except for
those designated and effective as hedging instruments and derivatives that meet the criteria of financial guarantee
contracts. Trading financial liabilities (including derivatives that are financial liabilities) are measured at fair value
subsequently with all fair value changes recognized in the current profit or loss except for those related to hedge
accounting.At initial recognition to provide more relevant accounting information the Company designates financial liabilities
that meet one of the following conditions as financial liabilities measured at fair value through profit or loss which
cannot be revoked:
A. Capable of eliminating or significantly reducing accounting mismatches.B. Managed and performance evaluated on a fair value basis for a portfolio of financial liabilities or a combination
of financial assets and financial liabilities as documented in formal written documents reflecting the Company's risk
management or investment strategy and reported internally to key management personnel on this basis.The Company subsequently measures such financial liabilities at fair value with changes in fair value due to the
Company's own credit risk recognized in other comprehensive income and all other fair value changes recognized in
the current profit or loss. Unless recognizing changes in fair value due to the Company's own credit risk in other
comprehensive income would create or enlarge an accounting mismatch in profit or loss the Company recognizes all
fair value changes (including the effect of changes in its own credit risk) in the current profit or loss.
2) Other financial liabilities
Except for the following items the Company classifies financial liabilities as those measured at amortized cost
using the effective interest method for subsequent measurement at amortized cost with gains or losses arising from
de-recognition or amortization recognized in the current profit or loss:
A. Financial liabilities measured at fair value through profit or loss.B. Financial liabilities caused by the transfer of financial assets that do not meet the conditions for de-recognition
or continue to be involved in the transferred financial assets.C. Financial guarantee contracts that do not fall under the first two categories mentioned above and loan
commitments that are not under the Category 1) and are provided at an interest rate lower than the market rate.A financial guarantee contract refers to an agreement that requires the issuer to compensate the contract holder
for a specific amount if a particular debtor fails to repay the debt on the due date according to the original or modified
terms of the debt instrument. Financial guarantee contracts that are not designated as financial liabilities measured at
fair value with changes recognized in profit or loss are measured after initial recognition at the higher of the amount of
the loss allowance and the balance of the initial recognition amount less the cumulative amortization during the
guarantee period.
3. De-recognition of financial assets and financial liabilities
1) Financial assets are de-recognized when it meets one of the following conditions i.e. it is removed from the
accounts and the balance sheet:
A. The contractual right to receive cash flows from the financial asset has expired.B. The financial asset has been transferred and the transfer complies with the provisions for the de-recognition of
financial assets.
2) Conditions for derecognition of financial liabilities
Financial liabilities (or part of it) is de-recognized when the present obligation is terminated.An agreement is signed between the Company and the lender to replace the original financial liability with a new
financial liability and if the terms of the new financial liability are substantially different from the original financial
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liability or if there are substantial modifications to the terms of the original financial liability (or a part of it) then the
original financial liability is de-recognized and a new financial liability is recognized. The difference between the book
value and the consideration paid (including non-cash assets transferred or liabilities assumed) is recognized in the
current profit or loss.When the Company re-acquires part of financial liabilities the book value of the entire financial liabilities is
allocated based on the proportion of the fair value of the part that continues to be recognized and the part that is de-
recognized on the re-acquisition date. The difference between the book value allocated to the de-recognized part and
the consideration paid (including non-cash assets transferred or liabilities assumed) should be recognized in the
current profit or loss.
4. Recognition basis and measurement method for the transfer of financial assets
When transferring financial assets the Company assesses the extent to which it retains the risks and rewards of
ownership of the financial assets and deals with the following situations accordingly:
(1) If almost all the risks and rewards of ownership of the financial asset are transferred then the financial asset is
de-recognized and the rights and obligations arising from the transfer or retained are separately recognized as assets
or liabilities.
(2) If substantially all the risks and rewards associated with the ownership of financial assets are retained the
financial asset continues to be recognized.
(3) If almost all risks and rewards in the ownership of financial assets are neither transferred nor retained (that is
other circumstances except (1) and (2) of this Article) the following circumstances shall be handled according to
whether the control over the financial assets is retained:
A. If no control over the financial assets is retained the financial assets shall be de-recognized and the rights and
obligations arising from or retained in the transfer shall be separately recognized as assets or liabilities.B. If the control over the financial assets is retained the relevant financial assets shall continue to be recognized
according to the degree of its continuous involvement in the transferred financial assets and the relevant liabilities
shall be recognized accordingly. The term "continuous involvement in the transferred financial asset" refers to the
extent to which the Company bears the risks or rewards of changes in the value of the transferred financial asset.The principle of substance over form is adopted to determine whether the transfer of financial assets meets the above
de-recognition conditions for financial assets. The Company divides the transfer of financial assets into overall transfer
and partial transfer of financial assets.If the entire transfer of financial assets meets the de-recognition conditions the difference between the amounts
of the following two items shall be included in the current profit and loss:
A. The book value of the transferred financial asset on the de-recognition date.B. The consideration received for transferring financial assets which is the sum of the amount corresponding to
the part of the cumulative fair value changes originally recognized in other comprehensive income that is de-
recognized (involving transferred financial assets measured at fair value with changes recognized in other
comprehensive income).If financial assets are partially transferred and the transferred part fully meets the de-recognition condition the
book value of the entire financial asset before the transfer is allocated between the de-recognized part and the
continuing recognized part (in this case the retained servicing asset is considered part of the continuing recognized
financial asset) based on their relative fair values on the transfer date. The difference between the following two
amounts is recognized in the current profit or loss:
A. The book value of the de-recognized part on the de-recognition date.
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B. The sum of the consideration received for the de-recognized part and the amount corresponding to the part of
the cumulative fair value changes originally recognized in other comprehensive income (involving transferred financial
assets measured at fair value with changes recognized in other comprehensive income).If the transfer of financial assets does not meet the de-recognition condition the financial asset continues to be
recognized and the consideration received is recognized as financial liabilities.
5. Determination method for the fair value of financial assets and financial liabilities
For financial assets or liabilities with an active market its fair value is determined by the quoted price in the active
market unless there is a restriction on the sale of the financial assets itself. For financial assets with restrictions on the
sale of the assets itself its fair value is determined by deducting the compensation amount required by market
participants for bearing the risk of not being able to sell the financial asset in the open market during the specified
period from the quoted price in the active market. Quoted prices in an active market include those that are readily and
regularly obtainable from exchanges dealers brokers industry groups pricing services or regulatory authorities and
can represent the actual and frequent market transactions on the basis of fair trade.The fair value of initially acquired or derived financial assets or incurred financial liabilities is based on the
transaction price in the market.Financial assets or liabilities without an active market are valued using valuation techniques to determine their fair
value. In valuation the Company uses valuation techniques that are applicable under current circumstances and
supported by sufficient available data and other information selecting input values consistent with the characteristics
of the assets or liabilities considered by market participants in transactions and prioritizes the use of relevant
observable input values wherever possible. In cases where relevant observable input values are not available or not
feasible to obtain unobservable input values are used.
6. Impairment of financial instruments
The Company measures impairment and recognizes loss allowances for financial assets measured at amortized
cost financial assets classified as measured at fair value through other comprehensive income lease receivables
contract assets loan commitments that are not measured at fair value through profit or loss financial liabilities that are
not measured at fair value through profit or loss and financial guarantee contracts formed by the transfer of financial
assets that do not meet the derecognition criteria or continue to be involved in the transferred financial assets based
on expected credit losses.Expected credit losses refer to the weighted average value of credit losses of financial instruments weighted by
the risk of default. Credit loss refers to the difference between all contractual cash flows receivable from the contract
and all cash flows expected to be received by the Company at the original effective interest rate that is the present
value of all cash shortages. For financial assets acquired or originated that have experienced credit impairment they
shall be discounted using the effective interest rate adjusted for credit.For receivables contract assets and lease receivables arising from transactions regulated by the revenue
standards the company applies a simplified measurement approach measuring loss allowances at an amount equal
to the expected credit losses over the entire lifetime of the assets.For acquired or originated financial assets that have experienced credit impairment only the cumulative change in
expected credit losses over the entire life from initial recognition is recognized as a provision for losses at each
balance sheet date. At each balance sheet date the change in expected credit losses over the entire life is recognized
as an impairment loss or gain in the current profit or loss. Even if the expected credit losses determined at the balance
sheet date for the entire life are less than the amount of expected credit losses reflected by the estimated cash flows at
initial recognition the favorable change in expected credit losses is recognized as an impairment gain.Apart from the aforementioned simplified measurement method and acquired or originated financial assets that
have experienced credit impairment the Company assesses whether the credit risk of the relevant financial
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instruments has significantly increased since initial recognition at each balance sheet date measures its loss provision
and recognizes expected credit losses and their changes according to the following situations:
A. If the credit risk of the financial instrument has not increased significantly since initial recognition and is in
phase I loss allowance is measured in the amount equal to the expected credit losses over the next 12 months and
interest income is calculated based on the book value and the effective interest rate.B. If the credit risk of the financial instrument has increased significantly since initial recognition but no credit
impairment has occurred and is in phase II loss allowance is measured in the amount equal to the expected credit
losses over the entire lifetime of the financial instrument and interest income is calculated based on the book value
and the effective interest rate.C. If the financial instrument has experienced credit impairment since initial recognition and is in phase III the
Company measures loss allowance in the amount equal to the expected credit losses over the entire lifetime of the
financial instrument and interest income is calculated based on the amortized cost and the effective interest rate.Increases or reversals of credit loss allowance for financial instruments are recognized as impairment losses or
gains in the current profit or loss. Except for financial assets classified at fair value through other comprehensive
income credit loss allowance reduces the book value of financial assets. For financial assets classified at fair value
through other comprehensive income the Company recognizes credit loss allowance in other comprehensive income
without reducing the book value of the financial asset presented in the balance sheet.If the Company had previously measured loss allowance for a financial instrument in the amount equal to the
expected credit losses over the entire lifetime of the financial instrument but as of the current balance sheet date the
financial instrument no longer exhibits a significant increase in credit risk since initial recognition the Company
measures loss allowance at the current balance sheet date in the amount equal to the expected credit losses over the
next 12 months. The resulting reversal of loss allowance is recognized as an impairment gain in the current profit or
loss.
1) Significant increase in credit risk
The Company uses reasonable and supportable forward-looking information available to determine whether the
credit risk of a financial instrument has increased significantly since initial recognition by comparing the risk of default
at the balance sheet date with the risk of default at the initial recognition date. For financial guarantee contracts when
applying the impairment requirements for financial instruments the Company considers the date on which the
Company becomes the party to the irrevocable commitment as the initial recognition date.The Company considers the following factors when assessing whether there has been a significant increase in
credit risk:
A. Whether there has been a significant change in the debtor's operational results actual or expected;
B. Whether there has been a significant adverse change in the regulatory economic or technological
environment in which the debtor operates;
C. Whether there has been a significant change in the value of collateral securing the debt or in the quality of
guarantees or credit enhancements provided by third parties which are expected to reduce the debtor's economic
incentive to repay on time as per the contract or affect the probability of default;
D. Whether there has been a significant change in the debtor's expected performance and repayment behavior;
E. Whether there has been a change in the Company's credit management methods for financial instruments etc.As of the balance sheet date if the Company determines that a financial instrument has low credit risk it is
assumed that the credit risk of the financial instrument has not increased significantly since initial recognition. If a
financial instrument has low default risk the borrower has a strong ability to fulfill its contractual cash flow obligations
in the short term and even if there are adverse changes in the economic situation and operating environment over a
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longer period it does not necessarily reduce the borrower's ability to fulfill its contractual cash flow obligations then
the financial instrument is considered to have low credit risk.
2) Financial assets with credit impairment
When one or more events occur that are expected to have an adverse effect on the future cash flows of financial
assets the financial asset becomes one that has experienced credit impairment. Evidence of credit impairment for
financial assets includes the following observable information:
A. The issuer or the debtor is experiencing significant financial difficulties;
B. The debtor has breached the contract such as defaulting on interest or principal payments or being overdue;
C. The creditor for economic or contractual considerations related to the debtor's financial difficulties grants
concessions to the debtor that would not be made under any other circumstances;
D. It is likely that the debtor will go bankrupt or undergo other financial restructuring;
E. The disappearance of an active market for the financial assets due to the issuer's or the debtor's financial
difficulties;
F. Acquiring or originating financial assets at a significant discount which reflects the occurrence of credit losses.Credit impairment of financial assets may result from the combined effect of multiple events and may not
necessarily be caused by individually identifiable events.
3) Determination of expected credit losses
The Company assesses the expected credit losses of financial instruments based on individual and Combination
evaluations taking into account reasonable and substantiated information regarding past events current conditions
and forecasts of future economic conditions.The Company classifies financial instruments into different combinations based on common credit risk
characteristics. The common credit risk characteristics adopted by the Company include: type of financial instruments
aging combination contract settlement cycle industry of debtors etc. For details on the individual assessment criteria
and combination credit risk characteristics of the relevant financial instruments refer to the accounting policies of the
financial instruments.The Company determines the expected credit losses of the relevant financial instruments using the following
methods:
A. For financial assets the credit loss is the present value of the difference between the contractual cash flows
due to the Company and the expected cash flows to be collected.B. For lease receivables the credit loss is the present value of the difference between the contractual cash flows
due to the Company and the expected cash flows to be collected.C. For financial guarantee contracts the credit loss is the expected payment to be made by the Company to
compensate for the credit loss incurred by the holder of the contract minus the present value of the difference
between the amount the Company expects to collect from the holder of the contract the debtor or any other party.D. For financial assets that have incurred credit impairment as of the balance sheet date but are not acquired or
originated credit-impaired the credit loss is the difference between the book value of the financial asset and the
present value of the estimated future cash flows discounted at the original effective interest rate.The methods used by the Company to measure the expected credit losses of financial instruments reflect factors
including: the unbiased probability-weighted average amount determined by evaluating a range of possible outcomes;
The time value of money. Information that can be obtained on the balance sheet date without the need for
unnecessary additional costs or efforts which is reasonable and substantiated relating to past events current
conditions and forecasts of future economic circumstances.
4) Write-down of financial assets
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When the Company no longer has reasonable expectation that the cash flows from the financial asset contract
can be fully or partially recovered the book value of the financial asset is directly written down. This write-down
constitutes the de-recognition of the related financial assets.
7. Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet without offsetting each other.However if the following conditions are met they are presented in the Balance Sheet as a net amount after offsetting:
A. The Company has a legally enforceable right to offset the recognized amounts and this right is currently
enforceable;
B. The Company intends to settle on a net basis or to realize the financial asset and settle the financial liability
simultaneously.
12. Notes receivable
The Company's determination method and accounting treatment method of expected credit loss of notes
receivable are detailed in the Notes V.11.The Company separately determines the credit loss of receivables with sufficient evidence that can assess the
expected credit loss at a reasonable cost at the level of individual instrument.When there is no sufficient evidence to evaluate the expected credit loss at a reasonable cost at the level of
individual tools the Company refers to the historical credit loss experience combines the current situation and the
judgment of future economic conditions and divides the notes receivable into several combinations according to the
credit risk characteristics and calculates the expected credit loss on the basis of the combination. The basis for
determining the combination is as follows:
Combination name Basis for determining the combination Provision method
The drawer has a high credit rating and has no bill The provision for bad debts is
Risk-free bank default in history so the risk of credit loss is extremely measured with reference to the
acceptance draft low and also has a strong ability to fulfill the obligation to historical credit loss experience and
combination pay the cash flow of the contract in a short period of in combination with the current
time. situation and the expectation offuture economic conditions.Commercial Provision is made based on the
acceptance draft Accounts receivable with the same aging have similar comparison table of aging and
combination credit risk characteristics expected credit loss rate over theentire duration
13. Accounts receivable
The Company's determination method and accounting treatment method of expected credit loss of accounts
receivable are detailed in the Notes V.11.The Company separately determines the credit loss of accounts receivable with sufficient evidence that the
expected credit loss can be assessed at a reasonable cost at the level of a single instrument.When there is no sufficient evidence to evaluate the expected credit loss at a reasonable cost at the level of
individual tools the Company refers to the historical credit loss experience combines the current situation and the
judgment of future economic conditions and divides the accounts receivable into several combinations according to
the credit risk characteristics and calculates the expected credit loss on the basis of the combination. The basis for
determining the combination is as follows:
Combination
name Basis for determining the combination Provision method
Combination of Accounts receivable of related parties within the scope of The provision for bad debts is
receivables of consolidation have similar credit risk characteristics measured with reference to the
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related parties historical credit loss experience and
within the scope in combination with the current
of consolidation situation and the expectation of
future economic conditions.Combination of Provision is made based on the
other customers' Accounts receivable with the same aging have similar credit comparison table of aging and
receivables risk characteristics expected credit loss rate over theentire duration
14. Receivables financing
Not applicable
15. Other receivables
Determination method and accounting treatment method of expected credit loss of other receivables
The Company's determination method and accounting treatment method of expected credit loss of other accounts
receivable are detailed in the Notes V.11.The Company individually determines the credit losses for other receivables that have sufficient evidence to
assess expected credit losses at a reasonable cost on an individual instrument level.When sufficient evidence to assess expected credit losses at a reasonable cost is not available on an individual
instrument level the Company refers to historical credit loss experience combined with current conditions and
judgments about future economic conditions and classifies other receivables into several combinations to calculate
expected credit losses on a combination basis. The basis for determining the combination is as follows:
Combination name Basis for determining the combination Provision method
Provision is made based on the
Combination of margin and According to the nature of business
deposit receivables margin and deposits have similar credit risk
comparison table of aging and
characteristics expected credit loss rate over theentire duration
The provision for bad debts is
Combination of employee According to the nature of business
measured with reference to the
reserve receivable employees' reserve receivables have
historical credit loss experience and in
similar credit risk characteristics combination with the current situationand the expectation of future economic
conditions.The provision for bad debts is
According to the nature of business social measured with reference to theCombination of social security security advances have similar credit risk historical credit loss experience and inadvances receivable characteristics combination with the current situationand the expectation of future economic
conditions.The provision for bad debts is
Combination of receivables of Accounts receivable of related parties measured with reference to the
related parties within the scope within the scope of consolidation have historical credit loss experience and in
of consolidation similar credit risk characteristics combination with the current situationand the expectation of future economic
conditions.Provision is made based on the
Combination of other financings Accounts receivable with the same aging comparison table of aging andhave similar credit risk characteristics expected credit loss rate over the
entire duration
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16. Contract assets
The Company recognizes a right to consideration from the transfer of goods to customers as a contract asset
when that right is conditional on factors other than the passage of time. The Company's unconditional rights to
consideration from customers (i.e. solely time-based) are presented separately as receivables.The Company's determination method and accounting treatment method of expected credit loss of contractual
assets are detailed in the Notes V.11.
17. Inventories
1. Inventory categories cost valuation methods for outgoing inventory inventory system and
amortization methods for low-value consumables and packaging materials
(1) Classification of inventory
Inventory refers to the finished products or goods held for sale products in production and materials and
materials consumed during the production process or service provision that the Company holds in its daily activities. It
mainly includes raw materials products in process finished products (stock commodities) etc.
(2) Cost valuation methods for inventory
At acquisition inventory is initially measured at cost including purchasing cost processing cost and other costs.Raw materials and inventory items are issued using the weighted average method for valuation except for branded
watch inventory items which are valued using the specific identification method.
(3) Inventory system
The inventory system is a perpetual inventory system.
(4) Amortization methods for low-value consumables and packaging materials
Low-value consumables are amortized using the one-time charge-off method;
Packaging materials are amortized using the one-time charge-off method;
2. Criteria and methods for recognizing and provisioning for inventory impairment
At the end of the period after a comprehensive inventory check inventory impairment provisions are made or
adjusted based on the lower of cost or net realizable value. For finished goods merchandise inventory and materials
for sale that are directly intended for sale in the normal course of business their net realizable value is determined by
the estimated selling price minus the estimated selling expenses and related taxes. For material inventory that requires
processing in the normal course of business its net realizable value is determined by the estimated selling price of the
produced finished goods minus the estimated costs to completion estimated selling expenses and related taxes. For
inventory held to fulfill sales or service contracts the net realizable value is calculated based on the contract price. If
the quantity of inventory held exceeds the quantity ordered in the sales contract the net realizable value of the excess
inventory is calculated based on the general selling price.At the end of the period inventory impairment provisions are made for individual inventory items; However for
inventories that are numerous and have low unit prices provisions for inventory impairment are made based on
inventory categories. Inventory that is related to the product series produced and sold in the same region with the
same or similar final uses or purposes and that is difficult to measure separately shall be combined for the provision
of inventory impairment.If the factors that led to the inventory write-down have disappeared the amount of the write-down is reversed and
included in the current profit and loss within the amount of inventory impairment provision originally recognized.The provision for inventory depreciation by combination is as follows:
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Category Determination basis of category Determination basis of the net realizablevalue of the category
Combination of merchandise New products launched by private brands in
inventory years the current year No provision for revaluation reserve
18. Assets held for sale
Not applicable
19. Debt investment
Not applicable
20. Other debt investment
Not applicable
21. Long-term receivables
Not applicable
22. Long-term equity investments
1. Determination of initial investment cost
A. Long-term equity investments formed through business combinations see the Notes 6 for specific accounting
policies on business combinations under common control and those not under common control.B. Long-term equity investments acquired through other means
Long-term equity investments acquired by paying cash are measured at the actual acquisition price as the initial
investment cost. Initial investment cost includes directly related expenses taxes and other necessary expenditures
incurred in acquiring the long-term equity investment.Long-term equity investments acquired by issuing equity securities are measured at the fair value of the issued
securities as the initial investment cost; Transaction costs incurred in issuing or acquiring own equity instruments can
be directly deducted from equity in equity transactions.Under the premise that a non-monetary asset exchange has commercial substance and the fair value of the asset
received or surrendered can be reliably measured the initial investment cost of the long-term equity investment
acquired in a non-monetary asset exchange is based on the fair value of the surrendered asset unless there is
conclusive evidence that the fair value of the received asset is more reliable; For non-monetary asset exchanges that
do not meet the above premise the initial investment cost of the long-term equity investment acquired is based on the
book value of the surrendered asset and related taxes and fees payable.Long-term equity investments obtained through debt restructuring are initially measured at cost based on fair
value.
2. Subsequent measurement and recognition of profit or loss
A. Cost method
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The Company accounts for long-term equity investments over which it has control using the cost method
measured at initial investment cost with additional investments or withdrawals adjusting the cost of the long-term
equity investment.Apart from cash dividends or profits declared but not yet distributed included in the price or consideration paid at
the time of investment the Company recognizes cash dividends or profits distributed by the investee as current
investment income.B. Equity method
The Company uses the equity method to account for long-term equity investments in associates and joint
ventures; For a portion of equity investments in associates held indirectly through venture capital organizations mutual
funds trust companies or similar entities including investment-linked insurance funds fair value measurement is used
and changes are recognized in profit or loss.If the initial cost of a long-term equity investment is greater than the fair value share of the identifiable net assets
of the investee at the time of investment the initial investment cost is not adjusted; If the initial investment cost is less
than the fair value share of the identifiable net assets of the investee at the time of investment the difference is
recognized in the current profit or loss.After acquiring long-term equity investments the Company recognizes investment income and other
comprehensive income based on its share of net gains or losses and other comprehensive income realized by the
investee and adjusts the book value of the long-term equity investment accordingly; it also calculates the share of
profits or cash dividends declared by the investee and correspondingly reduces the book value of the long-term equity
investment; For changes in the investee's equity other than net profits or losses other comprehensive income and
profit distribution the book value of long-term equity investment shall be adjusted and included in the owner's equity.When recognizing the share of the net profit and loss of the investee the Company adjusts and recognizes the
net profit of the investee based on the fair value of the identifiable assets of the investee at the time of investment.Unrealized profits and losses of internal transactions between the Company and its associated enterprises and joint
ventures shall be offset by the portion that belongs to the Company according to the due proportion and the
investment profits and losses shall be recognized on this basis.When recognizing its share of losses incurred by the investee the Company shall handle it in the following order:
first it offsets the book value of the long-term equity investment. Next if the book value of the long-term equity
investment is insufficient to offset the losses the Company continues to recognize investment losses limited to the
book value of other long-term equity interests that substantially constitute a net investment in the investee offsetting
the book value of long-term receivables and other items. Finally after the above actions if the Company still has
additional obligations as stipulated by the investment contract or agreement it recognizes a provision for liabilities
based on the expected obligation and includes it in the current investment losses.If the investee realizes profits in subsequent periods the Company reverses the process described above after
deducting the share of unrecognized losses. It reduces the book value of recognized provisions for liabilities restores
other long-term equity interests and the book value of long-term equity investments that substantially constitute a net
investment in the investee and then resumes recognizing investment income.
3. Conversion of accounting methods for long-term equity investments
1) Fair value measurement to equity method accounting
For equity investments in investees over which the Company originally had no control joint control or significant
influence and which were accounted for in accordance with financial instruments recognition and measurement
guidelines if additional investments enable the Company to exert significant influence or joint control without
constituting control the fair value of the original equity investment determined by the Accounting Standards for
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Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments plus the cost of the additional
investment shall be the initial investment cost under the equity method.If the initial investment cost under the equity method is less than the difference between the fair value share of the
identifiable net assets of the investee on the date of the additional investment calculated based on the new
shareholding scale post-investment the book value of the long-term equity investment is adjusted and the difference
is recognized in current non-operating income.
2) Fair value measurement or equity method accounting to cost method accounting
For equity investments in investees over which the Company originally had no control joint control or significant
influence and which were accounted for in accordance with financial instruments recognition and measurement
guidelines or for long-term equity investments in associates and joint ventures if additional investments lead to control
over the investee not under common control in preparing individual financial statements the book value of the original
equity investment plus the cost of the additional investment shall be the initial investment cost under the cost method.Other comprehensive income recognized from equity investments accounted for by the equity method before the
acquisition date is accounted for on the same basis as the direct disposal of related assets or liabilities by the investee.For equity investments held before the acquisition date that were accounted for in accordance with the Accounting
Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments the cumulative
fair value changes previously recognized in other comprehensive income shall be reclassified to current profit or loss
under the cost method.
3) Equity method accounting to fair value measurement
If the Company loses joint control or significant influence over the investee due to partial divestment of equity
investments the remaining equity investments after the disposal shall be subject to accounting treatment in
accordance with the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of
Financial Instruments and the difference between the fair value and the book value on the date of losing joint control
or significant influence shall be recognized in current profit or loss.For original equity investments that recognized other comprehensive income under the equity method other
comprehensive income shall be subject to accounting treatment on the same basis as if the investee had directly
disposed of the related assets or liabilities not under the equity method.
4) Cost method to equity method
If the Company loses the control over the investee due to disposal of part of equity investments or other reasons
in the preparation of individual financial statements the remaining equity after disposal that can exercise joint control
or significant influence over the investee shall be subject to accounting treatment under the equity method and the
remaining equity shall be deemed to have been adjusted under the equity method since acquisition.
5) Cost method to fair value measurement
If the Company loses the control over the investee due to disposal of part of equity investments and other reasons
in the preparation of individual financial statements the remaining equity after disposal that cannot exercise joint
control or exert significant influence on the investee shall be subject to accounting treatment in accordance with the
relevant provisions of the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of
Financial Instruments and the difference between the fair value and the book value on the date when the control is
lost shall be included in the current profit and loss.
4. Disposal of long-term equity investments
For disposal of long-term equity investment the difference between the book value and the actual price shall be
included in the current profit and loss. For long-term equity investments accounted for under the equity method when
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disposing of the investment the part originally included in other comprehensive income shall be subject to accounting
treatment according to the corresponding scale on the same basis as the investee directly disposes of the relevant
assets or liabilities.If the terms conditions and economic impact of the transactions related to the disposal of the equity investment in
subsidiaries meet one or more of the following circumstances multiple transactions will be taken as a package
transaction for accounting treatment:
A. These transactions are concluded at the same time or under the consideration of mutual influence;
B. These transactions collectively achieve a complete commercial result;
C. The occurrence of one transaction depends on the occurrence of at least one other transaction;
D. A transaction is uneconomical on its own but economical when considered together with other transactions.Where the control over the original subsidiaries is lost due to disposal of part of equity investments or other
reasons and it does not belong to a package transaction relevant accounting treatment shall be made by
distinguishing individual financial statements from consolidated financial statements:
1) In the individual financial statements for the disposal of equity the difference between the book value and the
actual acquisition price shall be included in the current profit and loss. If the remaining equity after disposal can
exercise joint control or significant influence on the investee it shall be subject to accounting treatment under the
equity method and the remaining equity shall be adjusted as if it had been accounted for under the equity method
since acquisition; If the remaining equity after disposal cannot exercise joint control or significant influence on the
investee it shall be subject to accounting treatment in accordance with the relevant provisions of the Accounting
Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments and the
difference between the fair value and the book value on the date when the control is lost shall be included in the
current profit and loss.
2) In the consolidated financial statements for various transactions before the loss of control over the subsidiaries
the capital reserves (stock premium) are adjusted according to the difference between the disposal price and the share
of net assets of the subsidiaries continuously calculated from the acquisition date or the combination date
corresponding to the disposal of long-term equity investment. If the capital reserves are insufficient the retained
earnings shall be adjusted; When the control over subsidiaries is lost the remaining equity shall be re-measured at its
fair value on the date of loss of control. The difference between the sum of the consideration obtained from the
disposal of equity and the fair value of the remaining equity less the share of the net assets of the original subsidiary
calculated continuously from the acquisition date according to the original shareholding ratio is included in the
investment income in the period of losing control and the goodwill is also written down. Other comprehensive income
related to equity investments in the original subsidiary shall be converted into current investment profits at the loss of
control.If the transactions of disposal of equity investments in subsidiaries until the loss of control belong to a package
transaction the transactions shall be accounted for as a transaction of disposal of equity investment in subsidiaries
and loss of control and the relevant accounting treatment shall be carried out by distinguishing individual financial
statements and consolidated financial statements:
1) In individual financial statements the difference between each disposal price and the book value of long-term
equity investment corresponding to the disposed equity before the loss of control is recognized as other
comprehensive income and transferred to the current profit or loss at the loss of control.
2) In the consolidated financial statements the difference between each disposal price and the share of net
assets of the subsidiary corresponding to each disposal of investment before the loss of control is recognized as other
comprehensive income which is converted to the current profit or loss at the loss of control.
5. Judgment criteria for common control and significant influence
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If the Company collectively controls an arrangement according to the relevant agreement with other participants
and decisions on activities that significantly affect the returns of the arrangement require unanimous consent from the
participants sharing control then the Company is considered to jointly control the arrangement with other participants
which constitutes a joint venture.When a joint venture is established through a separate entity the Company's rights over the net assets of the
separate entity are determined according to the relevant agreement. The separate entity is then accounted for as a
joint venture using the equity method. If according to the relevant agreement the Company is not deemed to have
rights over the net assets of the separate entity the entity is considered as joint operation. The Company recognizes
items related to its share of the joint operation's profits and accounts for them in accordance with the relevant
accounting standards.Significant influence refers to the power to participate in decision-making over the financial and operating policies
of the investee without having control or joint control over the formulation of those policies. The Company assesses
whether it has significant influence over the investee by considering all facts and circumstances and through one or
more of the following situations: (1) having representation on the board of directors or similar governing body of the
investee; (2) participating in the process of setting financial and operating policies of the investee; (3) engaging in
significant transactions with the investee; (4) appointing managerial personnel to the investee; (5) providing essential
technical information to the investee.
23. Investment properties
Measurement model of investment property
Measured under cost method
Depreciation or amortization method
Investment properties refer to real estate held for earning rental income or capital appreciation or both including
leased land use rights land use rights held for appreciation and subsequent transfer and leased buildings.Furthermore for vacant buildings held by the Company for operational leasing if the Board of Directors issues a
written resolution explicitly stating the intent to use them for operational leasing and that the holding intention will not
change in the short term they are also reported as investment properties.The Company's investment properties are recorded at cost as their entry value which for externally acquired
investment properties includes the acquisition price related taxes and fees and other expenditures that can be directly
attributed to the asset. The cost of self-constructed investment properties consists of necessary expenditures incurred
before the asset reaches its intended usable state.The Company uses the cost model for subsequent measurement of investment properties providing depreciation
or amortization for buildings and land use rights based on their expected service lives and net residual value rates.The expected service lives net residual value rates and annual depreciation (amortization) rates of investment
properties are listed as follows:
Category Expected service life Expected net residual value Annual depreciation(years) rate (%) (amortization) rate (%)
Houses and buildings 20-35 5.00 2.71-4.85
When the use of investment property is changed to owner-occupied from the date of change the Company
reclassifies the investment property as fixed assets or intangible assets. When the use of owner-occupied property is
changed to earn rental income or capital appreciation from the date of change the Company reclassifies fixed assets
or intangible assets as investment property. At the time of conversion the book value before conversion is used as the
recorded value after conversion.
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When investment property is disposed of or permanently withdrawn from use and no economic benefits are
expected from its disposal the recognition of such investment property is ceased. The income from the sale transfer
scrapping or destruction of investment property after deducting its book value and related taxes is recognized in the
current profit or loss.
24. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets held for the production of goods provision of services leasing or
administrative purposes and have a service life exceeding one accounting year. Fixed assets are recognized when
they meet the following conditions:
1) It is probable that the economic benefits associated with the fixed asset will flow into the enterprise;
2) The cost of the fixed asset can be measured reliably.
(2) Depreciation methods
Category Depreciation method Depreciation period Residual value rate Annual depreciationrate
Houses and
buildings Straight-line method 20-35 5 2.71-4.85
Machinery
equipment Straight-line method 10 5.00-10.00 9.50-9.00
Electronic equipment Straight-line method 5 5 19
Transport equipment Straight-line method 5 5 19
Other equipment Straight-line method 5 5 19
1. Depreciation of fixed assets
The depreciation of fixed assets is accrued over their expected service lives based on their book-entry values
minus their expected net residual values. For fixed assets with provision for impairment the depreciation amount will
be determined in the future according to the book value after deducting the impairment provision and the service life;
Fixed assets that have been fully depreciated and are still in use shall not be depreciated.The Company determines the useful life and estimated net residual value of the fixed assets according to their
nature and usage. At the end of each fiscal year the Company reviews the useful life estimated net residual value
and depreciation method of fixed assets and makes corresponding adjustments if there are differences from the
original estimates.
2. Subsequent expenditures on fixed assets
Subsequent expenditures related to fixed assets that meet the recognition criteria for fixed assets are included in
the cost of fixed assets; Those that do not meet the recognition criteria for fixed assets are included in the current
profits and losses when incurred.
3. Disposal of fixed assets
Fixed assets are derecognized upon disposal or when no future economic benefits are expected from their use or
disposal. The net amount of disposal income from fixed assets through sale transfer scrapping or damage after
deducting their book value and related taxes is recognized in the current profits and losses.
25. Construction in progress
1. Initial measurement of construction in progress
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The Company values self-constructed construction in progress at actual cost. Actual costs comprise necessary
expenditures incurred to bring the asset to the intended usable state including material costs labor costs related
taxes capitalized borrowing costs and apportioned indirect costs.
2. Standard and timing for transferring of construction in progress to fixed assets
The total expenses incurred before the construction in progress asset is ready for its intended use are recorded as
the entry value of the fixed asset. Construction in progress is transferred to fixed assets at the total expenditure
incurred before the asset reaches its intended usable state. If the project is usable but final settlement has not been
completed it is transferred based on estimated value and depreciated according to the Company's depreciation policy.Adjustments are made to the estimated value upon final settlement but previously recognized depreciation is not
adjusted.
26. Borrowing costs
1. Recognition principle of capitalization of borrowing costs
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction
or production of assets eligible for capitalization such costs shall be capitalized; And other borrowing costs shall be
recognized as expenses and included in current profits and losses when incurred.Qualifying capitalized assets are those that require a substantial period to get ready for their intended use or sale
including fixed assets investment properties and inventories.Borrowing costs begin to be capitalized when the following conditions are met:
(1) Expenditures for the asset have been incurred including cash payments transfers of non-cash assets or
incurring interest-bearing debt for the acquisition and construction or production of the asset;
(2) Borrowing costs have been incurred;
(3) Acquisition and construction or production activities necessary to bring the asset to its intended use or sale
have commenced.
2. Capitalization period of borrowing costs
The capitalization period spans from when borrowing costs begin to be capitalized until they cease excluding any
periods when capitalization is suspended.The borrowing costs shall stop being capitalized when acquired and constructed or produced assets eligible for
capitalization are available for use or sale.If parts of an asset being acquired and constructed or produced are completed and can be used independently
capitalization of borrowing costs for those parts ceases.When various parts of an asset are completed separately but the asset can only be used or sold as a whole upon
total completion capitalization of borrowing costs ceases when the entire asset is finished.
3. Suspension of capitalization period
Where the acquisition and construction or production of assets eligible for capitalization is interrupted abnormally
and the interruption lasts for more than 3 months the capitalization of borrowing costs shall be suspended; If the
interruption is a necessary procedure for the asset to be ready for use or sale the capitalization of borrowing costs
continues. Borrowing costs incurred during the interruption are recognized as current profits and losses until the
acquisition and construction or production activities resume and the capitalization of borrowing costs continues.
4. Calculation method of capitalized amount of borrowing costs
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Interest expenses on specific borrowings (after deducting interest income earned from unused borrowings
deposited in the bank or investment returns from temporary investments) and related ancillary costs are capitalized
until the qualifying asset is ready for its intended use or sale.The interest amount of general borrowings to be capitalized is calculated based on the weighted average of the
asset expenditures exceeding the specific borrowings multiplied by the simple average at end of the period and the
capitalization rate of the general borrowings occupied. The capitalization rate is calculated and determined based on
the weighted average interest rate of general borrowings.For borrowings issued at a discount or premium the amount of discount or premium amortized in each accounting
period is determined using the effective interest method adjusting the interest amount for each period.
27. Biological assets
Not applicable
28. Oil and gas assets
Not applicable
29. Intangible assets
(1) Service life and its determination basis estimation amortization method or review
procedure
Intangible assets refer to identifiable non-monetary assets without physical substance that the Company owns or
controls including land use rights software systems and trademark use rights.
1) Initial measurement of intangible assets
The cost of externally acquired intangible assets includes the purchase price related taxes and fees and other
expenses directly attributable to preparing the asset for its intended use. If the payment for intangible assets exceeds
normal credit terms and essentially represents financing the cost of the intangible assets is determined based on the
present value of the purchase price.Intangible assets acquired through debt restructuring to settle debts are measured at their fair value upon
recognition and any difference between the book value of the restructured debt and the fair value of the intangible
assets is recognized in the current profit or loss.In a non-monetary asset exchange that has commercial substance and where the fair value of the assets received
or surrendered can be reliably measured the cost of the intangible assets acquired is based on the fair value of the
assets surrendered unless there is conclusive evidence that the fair value of the acquired assets is more reliable; For
non-monetary asset exchanges that do not meet the above conditions the cost of the intangible assets acquired is
based on the book value of the assets surrendered and the related taxes and fees paid without recognizing any profit
or loss.Intangible assets acquired through business combination under common control are measured at the book value
of the merged party; For mergers not under common control intangible assets are recognized at fair value.Intangible assets developed internally include costs for materials used labor registration fees amortization of
other patents and licenses used during development interest expenses that meet capitalization criteria and other
direct expenses incurred before the intangible assets are ready for their intended use.
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2) Subsequent measurement of intangible assets
The Company classifies intangible assets as having either finite or indefinite useful lives upon acquisition.Intangible assets with limited useful life
Intangible assets with a finite useful life are amortized on a straight-line basis over their beneficial periods. The
estimated useful life and basis for intangible assets with a finite useful life are as follows:
Item Estimated service life Basis
Land use rights 50 Straight-line method
Software system 5 Straight-line method
Right to use trademark 5-10 Straight-line method
At the end of each period the useful life and amortization method of intangible assets with a finite useful life are
reviewed. If there are differences from the original estimates adjustments are made accordingly.Upon review there were no changes in the estimated useful life and amortization method of intangible assets at
the end of the current period.
(2) Collection scope of R&D expenses and related accounting treatment methods
1) Specific standards for classifying the research stage and development stage of the Company's internal
research and development projects
Research stage: This stage involves original and planned investigation activities undertaken to acquire and
understand new scientific or technical knowledge.Development stage: This stage involves applying research findings or other knowledge to a plan or design for
producing new or substantially improved materials devices products etc. before commercial production or use.Expenditures during the research stage of internal research and development projects are recognized as an
expense in the current profits and losses when incurred.
2). Specific criteria for capitalizing expenditures during the development stage
Expenditures during the development stage of internal research and development projects are recognized as
intangible assets when the following conditions are met:
A. Complete such intangible asset to make it usable or salable with technical feasibility;
B. Intention of completing such intangible asset for use or sale;
C. The ways in which intangible assets generate economic benefits include being able to demonstrate that
products produced using the intangible assets have a market or that the intangible assets themselves have a market.If the intangible assets are intended for internal use their utility must be proven;
D. There is sufficient support from technical financial resources and other resources to complete development of
such intangible assets and the ability of using or selling such intangible assets;
E. The expenditures attributable to development stage of such intangible assets shall be measured reliably.Expenditures in the development stage that do not meet the above conditions shall be included in the current
profits and losses when incurred. Development expenditures recognized in profits and losses in prior periods shall not
be subsequently reclassified as assets. Capitalized development phase expenditures are presented as development
expenditures on the balance sheet and are reclassified as intangible assets from the date the project is ready for its
intended use.
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30. Long-term assets impairment
The Company assesses whether there are any indications that long-term assets may be impaired as of the
balance sheet date. If indications of impairment exist in long-term assets their recoverable amount is estimated based
on individual assets; If it is difficult to estimate the recoverable amount of an individual asset the recoverable amount
of the asset group to which the asset belongs is determined.The estimate of the recoverable amount of an asset is based on the higher of its fair value less costs to sell and
the present value of the expected future cash flows.If the estimated recoverable amount of a long-term asset is lower than its carrying amount the carrying amount of
the long-term asset is written down to its recoverable amount. The impairment loss is recognized in current profits and
losses and an impairment provision is made accordingly. Once recognized impairment losses for assets shall not be
reversed in subsequent accounting periods.After the recognition of an impairment loss the depreciation or amortization expense of the impaired asset is
adjusted in future periods to systematically allocate the asset's adjusted carrying amount (less the expected net
residual value) over its remaining useful life.Goodwill arising from business combinations and intangible assets with indefinite useful lives are tested for
impairment annually regardless of whether there are any indications of impairment.When testing for impairment of goodwill the carrying amount of goodwill is allocated to the asset groups or
combinations that are expected to benefit from the synergies of the business combination. When testing for
impairment of asset groups or combinations that include goodwill if there are indications of impairment for the asset
groups or combinations related to goodwill the asset groups or combinations that do not include goodwill are tested
for impairment first. The recoverable amount is calculated and compared with the related carrying amount to recognize
the corresponding impairment loss. Then the asset groups or combinations that include goodwill are tested for
impairment comparing the carrying amount of these related asset groups or combinations (including the allocated
portion of the carrying amount of goodwill) with their recoverable amount. If the recoverable amount of the related
asset groups or combinations is lower than their carrying amount the impairment loss of goodwill is recognized.
31. Long-term deferred expenses
1. Amortization method
Long-term deferred expenses refer to expenses that have been incurred by the Company but are to be borne by
the current and subsequent periods with an amortization period of more than 1 year. Long-term deferred expenses
are amortized on a straight-line basis over the benefit period.
2. Amortization period
Category Amortization period
Counter production fee 2-3
Decoration fee 3-5
Other 2-3
32. Contract liabilities
Contract liabilities are the obligations for which the company has received or is entitled to receive consideration from
customers for the transfer of goods.
91Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
33. Employee compensation
(1) Accounting treatment methods for short-term compensation
Short-term compensation is employee compensation that is expected to be fully paid within twelve months after
the end of the annual reporting period in which employees provide related services excluding post-employment and
termination benefits. During the accounting period when services are provided by employees the company recognizes
payable short-term compensation as liabilities and includes them in the cost of related assets and expenses based on
the beneficiaries of the services provided.
(2) Accounting treatment method for post employment benefits
Post-employment benefits are various forms of remuneration and benefits provided to employees after they retire
or terminate their employment with the company excluding short-term compensation and termination benefits.The company's post-employment benefit plans are classified into defined contribution plans.Post-employment defined contribution plans mainly consist of participation in social basic pension insurance
unemployment insurance etc. organized and implemented by local labor and social security institutions. During the
accounting period in which employees provide services the company recognizes the contributions payable under
defined contribution plans as a liability and includes them in the current profits and losses or the cost of related assets.After the Company makes the above payments on a regular basis in accordance with the standards stipulated by
the state and the annuity plan it will have no other payment obligations.
(3) Accounting treatment method for dismissal benefits
Termination benefits are compensations paid to employees as a result of the company's decision to terminate
their employment before the contractual retirement date or to encourage voluntary resignation. The liability for
termination benefits is recognized when the company cannot unilaterally withdraw the plan to terminate employment or
the proposal to encourage voluntary resignation whichever is earlier. The liability is included in the current profits and
losses.The company provides early retirement benefits to employees who accept internal retirement arrangements. Early
retirement benefits refer to wages paid to employees who have not reached the statutory retirement age and have
voluntarily left their positions with the approval of the company's management as well as social insurance
contributions paid on their behalf. From the start date of the internal retirement arrangement until the employee
reaches the normal retirement age the company pays early retirement benefits to the early retired employees. For
early retirement benefits the company accounts for them in the same way as severance benefits. When the conditions
for recognizing severance benefits are met the wages and social insurance contributions intended to be paid from the
date the employee ceases to provide services until the normal retirement date are recognized as liabilities and
charged to current profits and losses in a lump sum. Differences arising from changes in actuarial assumptions and
adjustments to benefit standards for early retirement benefits are recognized in current profits and losses when
occurred.
(4) Accounting treatment of other long-term employee benefits
Other long-term employee benefits refer to all employee benefits other than short-term salaries post-employment
benefits and dismissal benefits.
92Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
For other long-term employee benefits meeting the conditions of defined contribution plans the company
recognizes the contributions payable as a liability during the accounting period in which employees render services
and includes them in the current profits and losses or the cost of related assets. For other long-term employee benefits
not meeting these conditions an independent actuary uses the projected unit credit method at each balance sheet
date to calculate the benefit obligations attributable to the period in which employees provide services and these are
included in the current profits and losses or the cost of related assets.
34. Estimated liabilities
1. Recognition criteria for estimated liabilities
In case that an obligation connected to contingencies meets all of the following conditions the Company
recognizes the obligation as a provision:
The obligation is a present obligation of the Company;
The fulfillment of the obligation is likely to result in an outflow of economic benefits;
The amount of the obligation can be measured reliably.
2. Measurement of estimated liabilities
The company measures its provisions based on the best estimate of the expenditures required to settle the
present obligations.When determining the best estimate the company comprehensively considers factors related to contingent items
such as risk uncertainty and the time value of money. For significant impacts of the time value of money the best
estimate is determined by discounting the related future cash outflows.The best estimate is treated as follows:
If the required expenditure falls within a continuous range (or interval) with equal likelihood of various outcomes
the best estimate is determined by the average of the range's upper and lower limits.If there is no continuous range (or interval) for the required expenditure or the likelihood of various outcomes
within the range is not equal such as in the case of contingent items involving a single project the best estimate is
determined by the most likely amount. If the contingent items involve multiple projects the best estimate is calculated
based on the various possible outcomes and their associated probabilities.If the company expects to be reimbursed by a third party for all or part of the expenditure required to settle a
provision the reimbursement amount is recognized as an asset when it is virtually certain to be received and the
recognized amount does not exceed the carrying amount of the provision.
35. Share-based payment
1. Types of share-based payments
The company's share-based payments are categorized into equity-settled and cash-settled.
2. Determination method for the fair value of equity instruments
For granted options and other equity instruments with an active market their fair value is determined based on
quoted prices in the active market. For granted options and other equity instruments without an active market their fair
value is estimated using option pricing models which consider the following factors: (1) the exercise price of the option;
(2) The option's term; (3) The current price of the underlying stock; (4) The expected volatility of the stock price; (5)
The expected dividends of the shares; (6) The risk-free interest rate during the option's term.
93Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
When determining the fair value of equity instruments on the grant date the impact of market and non-vesting
conditions as stipulated in the share-based payment agreement is considered. For share-based payments with non-
vesting conditions as long as the employee or other party meets all non-market conditions among the vesting
conditions (such as service period) the cost corresponding to the services received is recognized.
3. Basis for the best estimate of vesting equity instruments
On each balance sheet date within the waiting period the best estimate of the number of equity instruments
expected to vest is revised based on subsequent information such as changes in the number of employees eligible for
vesting. On the vesting date the final expected number of equity instruments to vest matches the actual number
vested.
4. Accounting treatment
For equity-settled share-based payments they are measured at the fair value of the equity instruments granted to
employees. If immediately exercisable upon grant they are recognized in related costs or expenses at the grant date's
fair value with a corresponding increase in capital reserve. If exercisable only after completing the service or achieving
performance conditions within the vesting period each balance sheet date during the vesting period will reflect the
best estimate of the number of vestable equity instruments. The fair value on the grant date is used to allocate the
service costs obtained in the current period into related costs or expenses and capital reserve. Post-vesting date no
adjustments are made to the recognized costs or expenses and total equity.For cash-settled share-based payments they are measured at the fair value of the liabilities calculated based on
the Company's shares or other equity instruments. If immediately exercisable upon grant they are recognized in
related costs or expenses at the fair value of the liabilities assumed at the grant date with a corresponding increase in
liabilities. If exercisable only after completing the service or achieving performance conditions within the vesting period
each balance sheet date during the vesting period will reflect the best estimate of the exercisable situation. The fair
value of the liabilities assumed is used to allocate the service costs obtained in the current period into costs or
expenses and corresponding liabilities. On each balance sheet date and settlement date before the settlement of
relevant liabilities the fair value of liabilities shall be re-measured and the changes shall be included in the current
profits and losses.If the granted equity instruments are cancelled within the vesting period the Company treats the cancellation as
accelerated vesting recognizing the remaining amount to be recognized in the vesting period immediately in current
profits and losses and simultaneously increasing capital reserves. If employees or other parties have the option to
meet non-vesting conditions but fail to meet them within the vesting period the Company treats it as a cancellation of
the granted equity instruments.
36. Other financial instruments like preferred shares and perpetual bonds
Not applicable
37. Revenue
Disclosure of accounting policies adopted for recognition and measurement of revenue by business type
The Company's revenue mainly comes from the following business types:
(1) Watch sales business
(2) Precision manufacturing business
(3) Property leasing business
94Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
1. General principles of revenue recognition
Revenue is recognized at the transaction price allocated to the performance obligation when the Company fulfills
its performance obligations under a contract by transferring control of goods or services to the customer.Performance obligation refers to the commitment in the contract that the Company can transfer to the customer
the goods or services that can be clearly distinguished.Control over the relevant goods is transferred when the customer can direct the use of and obtain substantially all
the remaining benefits from the goods or services.On the contract commencement date the Company assesses the contract to identify each distinct performance
obligation and determines whether each obligation is satisfied over time or at a point in time. If one of the following
conditions is met it is considered that the performance obligation is fulfilled over a period of time and the Company
recognizes revenue based on the progress of performance over time: (1) The customer simultaneously receives and
consumes the economic benefits as the company performs; (2) The customer controls the goods in progress as the
company performs; (3) The goods produced by the company's performance have no alternative use and the company
has the right to payment for the performance completed to date throughout the contract period. Otherwise the
Company recognizes revenue at the point in time when the customer obtains control of the relevant goods or services.For performance obligations fulfilled over a period of time the Company determines the appropriate progress of
performance based on the nature of goods and services using the input method. The output method determines the
progress of performance based on the value of goods transferred to the customer (the input method determines the
progress of performance based on the company's inputs to fulfill the performance obligation). Where the progress of
performance cannot be reasonably determined if the costs incurred by the Company are expected to be compensated
revenue shall be recognized according to the amount of costs incurred until the progress of performance can be
reasonably determined.
2. Specific methods of revenue recognition
The company has three main business segments: watch sales precision manufacturing and property leasing.According to the Company's own business model and settlement method the specific methods for recognizing sales
revenue of various businesses are disclosed as follows:
(1) Watch sales business
The Company's watch sales business is a performance obligation performed at a certain point in time.* Online sales
Revenue is recognized when the products are delivered signed for by the customer and payment has been
received by the platform.* Offline sales
Revenue is recognized when the product is delivered to the customer and accepted by the customer the price
has been received or the right to receive the payment has been obtained and the relevant economic benefits are likely
to flow in.* Commissioned sales
Under the commissioned sales model the Company recognizes revenue when it receives the sales list from the
commissioned seller and confirms that the control over the goods has been transferred to the purchaser.* Consignment-in
Under the consignment-in model when the Company delivers the external consignment products to the customer
and confirms that the control of the goods has been transferred to the buyer the revenue is recognized by net method.
(2) Precision manufacturing business
95Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
The Company's precision manufacturing and sales business fulfills the performance obligations at a point in time.Domestic sales revenue is recognized when the company delivers the product to the contractually agreed delivery
location the products are accepted by the customer payment has been received or the right to receive payment has
been obtained and the related economic benefits are likely to flow in. Export sales revenue is recognized when the
company has declared the products for export according to the contract obtained the Bill of Lading received the
payment or obtained the right to receive payment and the related economic benefits are likely to flow in.
(3) Property leasing business
For details of specific accounting policies please refer to Note V.41 Accounting treatment of the Company as a
lessor.
3. Revenue treatment principles for specific transactions
(1) Contracts with sales return clauses
Revenue is recognized at the amount expected to be entitled from the transfer of goods to the customer when the
customer obtains control of the relevant goods (i.e. excluding the amount expected to be refunded due to sales
returns). A liability is recognized for the amount expected to be refunded due to sales returns.The carrying amount of goods expected to be returned less the estimated costs to recover such goods (including
any impairment of the returned goods) is accounted for under the item "refund assets."
(2) Contracts with quality assurance clauses
Evaluate whether the quality assurance provides a separate service in addition to assuring the customer that the
goods sold meet the established standards. If the Company provides additional services it shall be treated as a single
performance obligation and subject to accounting treatment in accordance with the provisions of the revenue
standards; Otherwise the quality assurance responsibility shall be subject to accounting treatment in accordance with
the provisions of the accounting standards for contingencies.Different revenue recognition and measurement methods involved in different business models adopted by the same
type of business
Not applicable
38. Contract costs
1. Contract performance costs
The costs incurred by the company for the performance of a contract which do not fall within the scope of other
accounting standards outside of revenue standards and meet the following conditions are recognized as an asset:
(1) The costs are directly related to a current or expected contract including direct labor direct materials
manufacturing overhead (or similar costs) costs explicitly borne by the customer and other costs incurred solely due
to the contract;
(2) The costs that increase the resources of the enterprise for future performance obligations;
(3) The costs that are expected to be recoverable.
These assets are classified as inventory or other non-current assets based on whether their amortization period
exceeds a normal operating cycle from the time of initial recognition.
2. Contract acquisition costs
The incremental costs incurred by the company to obtain a contract that are expected to be recoverable are
recognized as an asset. Incremental costs refer to costs that would not have been incurred if the contract had not been
obtained such as sales commissions. For amortization periods not exceeding one year these costs are recognized in
the current profits and losses upon occurrence.
96Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
3. Amortization of contract costs
Assets related to contract costs are amortized on the same basis as the revenue recognition for the associated
goods or services. They are amortized at the point in time or according to the progress of the performance obligations
and recognized in the current profits and losses.
4. Impairment of Contract Costs
For assets related to contract costs if the carrying amount exceeds the difference between the expected
consideration receivable from transferring the goods related to the asset and the estimated costs to transfer those
goods an impairment provision should be recognized for the excess and recorded as an asset impairment loss.After the impairment loss is provided for if there is a change in the factors that caused the impairment in previous
periods resulting in the above difference exceeding the carrying amount of the asset the previously provided
impairment loss is reversed and recognized in the current profits and losses. However the carrying amount of the
asset after reversal should not exceed the carrying amount on the reversal date assuming no impairment loss had
been provided.
39. Government subsidies
1. Type
Government grants are monetary and non-monetary assets obtained by the company from the government
without compensation. Based on the beneficiary specified in the relevant government documents government grants
are classified into asset-related and income-related government grants.Government subsidies related to assets refer to government subsidies obtained by the Company for the purchase
construction or other forms of long-term assets of government subsidies. Government subsidies related to income
refer to government subsidies other than government subsidies related to assets.
2. Recognition of government subsidies
Government grants are recognized at the receivable amount at the end of the period if there is evidence that the
company meets the relevant conditions of the financial support policy and expects to receive the financial support
funds. Otherwise government grants are recognized when actually received.Government grants in the form of monetary assets are measured at the amount received or receivable. Non-
monetary government grants are measured at fair value; If fair value cannot be reliably determined they are measured
at the nominal amount (RMB1). Government grants measured at a nominal amount are directly included in the current
profits and losses.
3. Accounting treatment method
Based on the economic substance of the transactions the Company determines whether to use the gross method
or net method for accounting treatment of a certain type of government grant transaction. Usually the Company uses
only one method for similar or related government grant transactions and consistently applies that method to the
transactions.For asset-related government grants the grants are either deducted from the carrying amount of the related asset
or recognized as deferred income. Asset-related government grants recognized as deferred income are systematically
recognized in profits and losses over the useful life of the constructed or purchased asset using a reasonable and
systematic method.For income-related government grants those used to compensate for related expenses or losses incurred by the
company in subsequent periods are recognized as deferred income and included in profit or loss or deducted from
related costs in the period when the related expenses or losses are recognized; Those used to compensate for related
97Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
expenses or losses already incurred by the company are directly included in profit or loss or deducted from related
costs when received.Government grants related to the entity's routine activities are recognized as other income or deducted from
related cost expenses; Government grants not related to the entity's routine activities are recognized as non-operating
income and expenses.Government grants received for interest subsidies on policy-based preferential loans are used to offset related
borrowing costs; For policy-based preferential interest rate loans provided by lending banks the actual loan amount
received is taken as the borrowing's book value and the relevant borrowing costs are calculated based on the loan
principal and the policy-based preferential interest rate.When previously recognized government grants need to be returned if they were initially deducted from the
carrying amount of related assets the asset carrying amount shall be adjusted; If there is a balance of related deferred
income the balance of deferred income is reduced and the excess is included in the current profits and losses; If
there is no related deferred income the amount is directly included in the current profits and losses.
40. Deferred tax assets and deferred tax liabilities
Deferred tax assets and liabilities are recognized based on the differences between the tax bases of assets and
liabilities and their carrying amounts (temporary differences). On the balance sheet date the deferred income tax
assets and deferred income tax liabilities shall be measured according to the tax rate applicable to the period during
which the assets are expected to be recovered or the liabilities are expected to be paid off.
1. Recognition basis of deferred tax assets
Deferred tax assets arising from deductible temporary differences that are recognized to the extent that taxable
income will be probable to be available against the deductible temporary difference deductible losses and tax credits
that can be carried forward to subsequent periods. However the deferred tax assets arising from the initial recognition
of assets or liabilities in a transaction with the following characteristics at the same time shall not be recognized: (1)
The transaction is not a business combination; (2) The transaction affects neither the accounting profit nor the taxable
income or deductible loss.For deductible temporary differences related to investments in associates the corresponding deferred tax assets
are recognized when all the following conditions are met: the temporary difference may be reversed in the foreseeable
future and taxable income will be available against which the deductible temporary differences can be used.
2. Recognition basis of deferred income tax liabilities
The company recognizes the taxable temporary differences payable but not paid in the current period and prior
periods as deferred income tax liabilities. But excluding:
(1) Temporary differences arising from the initial recognition of goodwill;
(2) Transactions or events that are not formed by business combination and the occurrence of such transactions
or events affects neither the accounting profit nor the temporary differences formed by the taxable income (or
deductible losses);
(3) For taxable temporary differences related to investments in subsidiaries and associates the time of their
reversal can be controlled and they are not likely to be reversed in the foreseeable future.
3. Deferred tax assets and liabilities are presented as a net amount when the following conditions are met
simultaneously:
(1) The enterprise has the legal right to offset current tax assets against current tax liabilities on a net basis;
98Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(2) The deferred tax assets and liabilities are related to income taxes levied by the same taxation authority on the
same taxable entity or different taxable entities and for each significant period in which the deferred tax assets and
liabilities reverse the involved taxable entities intend to settle current tax assets and liabilities on a net basis or realize
the assets and settle the liabilities simultaneously.
41. Leasing
(1) Accounting treatment method of leasing as a lessee
At the commencement date of the lease except for short-term leases and leases of low-value assets subject to
simplified treatment the company recognizes right-of-use assets and lease liabilities.Short-term leases and leases of low-value assets
Short-term leases are those without a purchase option and with a lease term of not more than 12 months. Leases
of low-value assets refer to leases where the leased asset if new is of low value.The company does not recognize right-of-use assets and lease liabilities for short-term leases and leases of low-
value assets; instead related lease payments are recognized on a straight-line method or other systematic and
reasonable methods over the lease term as part of the cost of the related assets or as current period profit or loss.
(2) Accounting treatment method of leasing as a lessor
(1) Classification of leases
The company classifies leases as finance leases or operating leases on the commencement date of the lease.Finance lease refers to a lease that substantially transfers all risks and rewards related to ownership of the leased
asset where ownership may or may not ultimately be transferred. Operating lease refers to all other leases that are
not finance leases.A lease is typically classified as a finance lease by our company if one or more of the following conditions exist:
1) Ownership of the leased asset is transferred to the lessee at the end of the lease term;
2) The lessee has the option to purchase the leased asset at a price sufficiently lower than its fair value at the
time the option is expected to be exercised making it reasonably certain that the lessee will exercise the option at the
lease commencement date;
3) Although ownership is not transferred the lease term covers a major part of the useful life of the asset;
4) At the inception of the lease the present value of the lease receipts is nearly the fair value of the leased asset;
5) The leased asset is of such a specialized nature that only the lessee can use it without major modifications.
A lease may also be classified as a finance lease by our company if it exhibits one or more of the following
indicators:
1) If the lessee cancels the lease the lessee bears the losses associated with the cancellation for the lessor;
2) Gains or losses arising from fluctuations in the fair value of the residual value of assets are attributed to the
lessee.
3) The lessee has the ability to continue leasing at a rent significantly below market level for the next period.
(2) Accounting treatment for finance leases
On the lease commencement date the Company recognizes the finance lease receivables for the finance lease
and terminates the recognition of the finance lease assets.At the initial recognition of finance lease receivables the unguaranteed residual value and the present value of
lease receipts not received on the commencement date of lease term discounted at the interest rate implicit in the
lease are summed to determine the entry value of the finance lease receivables. Lease receipts include:
99Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
1) Fixed payments and substantially fixed payments after deducting lease incentives;
2) Variable lease payments that depend on an index or rate;
3) In cases where it is reasonably certain that the lessee will exercise the purchase option lease receipts include
the exercise price of the purchase option;
4) If the lease term reflects that the lessee is expected to exercise the termination option lease receipts include
the amount payable by the lessee upon exercising the termination option;
5) Guaranteed residual value provided to the lessor by the lessee parties related to the lessee and independent
third parties with the financial capacity to fulfill the guarantee obligations.The company calculates and recognizes interest income for each period within the lease term based on a fixed
implicit lease rate. Variable lease payments not included in the net investment in the lease are recognized in the
current period's profit or loss when they occur.
(3) Accounting treatment for operating leases
The company recognizes lease receipts from operating leases as rental income over the lease term using the
straight-line method or another systematic and rational method; Initial direct costs associated with operating leases are
capitalized and amortized over the lease term on the same basis as rental income recognition and are included in the
current period's profit or loss; Variable lease payments related to operating leases that are not included in lease
receipts are recognized in the current period's profit or loss when they occur.
42. Other significant accounting policies and accounting estimates
Not applicable
43. Changes in significant accounting policies and estimates
(1) Changes in significant accounting policies
Not applicable
(2) Changes in significant accounting estimates
Not applicable
(3) Adjustment of items related to the financial statements at the beginning of the year when the new
accounting standards are implemented for the first time since 2024
Not applicable
44. Others
Not applicable
VI. Taxes
1. Main taxes and tax rates
100Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Tax Type Tax Basis Tax rates
Domestic sales and provision of
processing repairs and replacement 13%
services
VAT Real estate leasing services 9%
Other taxable sales of services 6%
Simple tax method 5%
Consumption tax High-end watches 20%
Urban maintenance and construction
tax Paid-in turnover tax 7%、5%
Enterprise income tax Taxable income See the table below for details
Property tax Tax basis: 70% or 80% of the originalvalue of the house property 1.2%、12%
Disclosure of information about taxpayers with different enterprise income tax rates
Name of taxpayer Income tax rate
Shenzhen Harmony World Watch Centre Co. Ltd. (* ) 25%
FIYTA Sales Co. Ltd. (* ) 25%
Shenzhen FIYTA Precision Technology Co. Ltd. (* ) 15%
Shenzhen FIYTA STD Co. Ltd. (* ) 15%
Shenzhen Harmony World Watch Centre Co. Ltd. (* ) 20%
Shenzhen Xunhang Precision Technology Co. Ltd. 25%
Emile Chouriet Horologe (Shenzhen) Co. Ltd. 25%
Liaoning Hengdarui Commerce and Trade Co. Ltd. 25%
Temporal (Shenzhen) Co. Ltd. 25%
Shenzhen Harmony E-commerce Co. Ltd. (* ) 20%
FIYTA (HONG KONG) LIMITED (* ) 16.5%
Montres Chouriet SA（* ） 30%
Note * : According to the relevant provisions of the "Interim Measures for the Administration of Enterprise Income
Tax Collection for Enterprises with Trans-regional Operations and Consolidated Tax Payments" issued by the State
Administration of Taxation the headquarters and its subordinate branches of such companies implement a
consolidated tax payment method for enterprise income tax. This method involves "unified calculation hierarchical
management local prepayment consolidated settlement and fiscal transfer of accounts." 50% of the prepayment is
shared among branches and 50% is shared by the head office;
Note * : These companies enjoy the "tax rate reduction and exemption for high-tech enterprises that need key
support from the state";
Note * : the Company's registered location is Hong Kong and the local profits tax in Hong Kong is applicable and
the applicable tax rate for this year is 16.50%;
Note * : the Company is registered in Switzerland. According to the applicable tax rate in registration location the
comprehensive tax rate for this year is 30%;
Notes * : these companies are small low-profit enterprises and are subject to enterprise income tax at a rate of
20%.
2. Tax preference
According to the "Announcement on Preferential Income Tax Policies for Small and Micro Enterprises and
Individual Businesses" (CS [2023] No. 6) issued by the Ministry of Finance and the State Administration of Taxation
small and micro-profit enterprises include only 25% of their taxable income and pay enterprise income tax at a rate of
20%. According to the "Notice on Extending the Loss Carry Forward Period for High-Tech Enterprises and
Technology-Based Small and Medium-Sized Enterprises" (CS [2018] No. 76) issued by the Ministry of Finance and the
101Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
State Administration of Taxation starting from January 1 2018 losses incurred in the five fiscal years prior to
obtaining high-tech enterprise qualification that have not yet been offset are allowed to be carried forward to
subsequent years for offsetting with the maximum carry forward period extended from 5 years to 10 years.According to the "Announcement on Further Improving the Policy of Pre-tax Additional Deduction of R&D
Expenses" (CS [2023] No. 7) issued by the Ministry of Finance and the State Administration of Taxation starting from
January 1 2023 enterprises' actual R&D expenses incurred in conducting R&D activities which are not converted into
intangible assets and are included in the current profit and loss can be additionally deducted at 100% of the actual
amount incurred on top of the actual deduction as per regulations. Where intangible assets are formed they shall be
amortized before tax at 200% of the cost of intangible assets as of January 1 2023.Since 2019 Hong Kong implemented a two-tiered profits tax regime whereby the profits tax rate for the first
HKD2000000 of profits earned by Hong Kong companies is reduced to 8.25% and the remaining profits are taxed at
the standard rate of 16.5%.
3. Others
Not applicable
7. Notes to items in the consolidated financial statements
1. Monetary funds
Unit: RMB
Item Ending Balance Opening balance
Cash on hand 107494.56 178996.87
Cash in bank 21352343.64 35443378.12
Other monetary funds 2109236.20 1262979.96
Deposit in finance companies 380786934.73 467743798.76
Total 404356009.13 504629153.71
Including: total amount
deposited abroad 1951883.15 1202601.86
Other notes
The deposits in finance companies were mainly the deposits in AVIC Finance Co. Ltd.As of June 30 2024 the Company had no pledged or frozen funds. Details of the Company's funds placed
overseas with restrictions on fund repatriation are as follows:
Item Ending Balance Opening balance
Funds placed overseas with restrictions on fund repatriation 1951883.15 1202601.86
2. Trading financial assets
Not applicable
3. Derivative financial assets
Not applicable
102Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
4. Notes receivable
(1) Classified presentation of notes receivable
Unit: RMB
Item Ending Balance Opening balance
Bank acceptance note 7483190.50 10363449.00
Commercial acceptance note 8855201.81 7905523.37
Total 16338392.31 18268972.37
(2). Disclosure under the methods of provision for bad debts by category
Unit: RMB
Ending Balance Opening balance
Categor Book balance Bad debt provision Book balance Bad debt provision
y Drawing Book Drawing Book
Amount Scale Amount percent value Amount Scale Amount percent value
ages ages
In
which:
Notes
receiva
ble with
provisio
n for 16654 100.00 316420 1.90% 16338 18685 100.00 416080 18268bad 813.30 % .99 392.31 052.55 % .18 2.23% 972.37
debts
by
combin
ation
In
which:
Comme
rcial
accepta
nce 9171622.80 55.07%
316420.993.45%
885528321641608079055
draft 01.81 03.55
44.54%.185.00%23.37
combin
ation
Risk-
free
bank
accepta 74831 74831 10363
nce 90.50 44.93% 0.00% 90.50 449.00 55.46% 0.00%
10363
449.00
draft
combin
ation
Total 16654 100.00 316420 1.90% 16338 18685 100.00 416080 2.23% 18268813.30 % .99 392.31 052.55 % .18 972.37
Name of provision with provision for bad debts by combination: commercial acceptance bill combination
Unit: RMB
103Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Ending Balance
Name
Book balance Bad debt provision Drawing percentages
Commercial acceptance
draft combination 9171622.80 316420.99 3.45%
Total 9171622.80 316420.99
Description of the basis for determining the combination:
Accounts receivable with the same aging have similar credit risk characteristics.Catalog name with provision for bad debts by combination: non-risk bank acceptance bill combination
Unit: RMB
Ending Balance
Name
Book balance Bad debt provision Drawing percentages
Risk-free bank acceptance
draft combination 7483190.50 0.00%
Total 7483190.50
Description of the basis for determining the combination:
The drawer has a high credit rating and has no bill default in history so the risk of credit loss is extremely low and
also has a strong ability to fulfill the obligation to pay the cash flow of the contract in a short period of time.If the provision for bad debts of notes receivable is made according to the general expected credit loss model:
Not applicable
(3) Status of bad debt provision recovery or reversal for the period
Provision for bad debts in the current period:
Unit: RMB
Amount of change for the period
Category Opening Endingbalance Provision Recovered ortransferred Write-off Other
Balance
Notes
receivable
with provision
for bad debts
by individual
Notes
receivable
with provision
for bad debts
by
combination
Including:
commercial
acceptance
bill 416080.18 99659.19 316420.99
combination
Risk-free bank
acceptance
draft
combination
104Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Total 416080.18 99659.19 316420.99
Where accounts receivable with significant from provision for bad debts or recovered in the current period
Not applicable
(4) Notes receivable pledged by the Company at the end of the period
Not applicable
(5) Receivables notes or discounted at period-end not yet due on the Company's balance
sheet date
Unit: RMB
Item Termination confirmation amount atperiod-end Unconfirmed amount at period-end
Bank acceptance note 24056305.26 0.00
Total 24056305.26 0.00
(6). Situation of notes receivable actually written off in the current period
Not applicable
5. Accounts receivable
1. Disclosure by aging
Unit: RMB
Aging Book balance at period end Beginning book balance
Within 1 year (including 1 year) 363748311.83 333204160.07
1-2 years 3035192.98 2123874.00
2-3 years 1519611.03 4200458.08
More than 3 years 19089043.69 18005255.95
3-4 years 19089043.69 18005255.95
Total 387392159.53 357533748.10
(2). Disclosure under the methods of provision for bad debts by category
Unit: RMB
Ending Balance Opening balance
Categor Book balance Bad debt provision Book balance Bad debt provision
y Drawing Book Drawing Book
Amount Scale Amount percent value Amount Scale Amount percent value
ages ages
Account
s 20141
receiva 411.68 5.20%
19908233006247082314815597
405.2498.84%.44541.736.91%792.2593.69%49.48
ble with
provisio
105Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
n for
bad
debts
by
individu
al
In
which:
Account
s
receiva
ble with
provisio
n for 367250 94.80% 12000 3.27% 355250 332825 11242 321583
bad 747.85 288.48 459.37 206.37
93.09%194.213.38%012.16
debts
by
combin
ation
In
which:
Combin
ation of
other
custom 367250 12000 355250 332825 11242 321583
ers' 747.85
94.80%288.483.27%459.37206.3793.09%194.213.38%012.16
receiva
bles
Total 387392 100.00 31908159.53 % 693.72 8.24%
355483357533100.0034390323142
465.81748.10%986.469.62%761.64
Category name of provision for bad debts by individual: accounts receivable from other customers
Unit: RMB
Opening balance Ending Balance
Name
Book balance Bad debt Bad debt
Drawing Provision
provision Book balance provision percentages Reason
Receiva
bles from
other 24708541.73 23148792.25 20141411.68 19908405.24 98.84% Less likely to
customer be withdrawn
s
Total 24708541.73 23148792.25 20141411.68 19908405.24
Category name of provision for bad debts by combination: accounts receivable from other customers
Unit: RMB
Ending Balance
Name
Book balance Bad debt provision Drawing percentages
Receivables from other
customers 367250747.85 12000288.48 3.27%
Total 367250747.85 12000288.48
Description of the basis for determining the combination:
106Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Accounts receivable with the same combination have similar credit risk characteristics.If the provision for bad debts of accounts receivable is made according to the general expected credit loss model:
Not applicable
(3) Status of bad debt provision recovery or reversal for the period
Provision for bad debts in the current period:
Unit: RMB
Amount of change for the period
Category Openingbalance Recovered or Ending BalanceProvision transferred Write-off Other
Accounts
receivable
with provision
for expected 23148792.25 3253930.73 -13543.72 19908405.24
credit losses
by individual
Accounts
receivable
with provision
for expected 11242194.21 822060.56 54756.65 9209.64 12000288.48
credit losses
by
combination
Total 34390986.46 822060.56 3308687.38 -4334.08 31908693.72
Where accounts receivable with significant from provision for bad debts or recovered in the current period
Unit: RMB
Recovered or Determine the basis and
Company name reversed Reason for Recoveryreversal method rationality of the originalamount provision for bad debts
Payment
Shijiazhuang Yuhua Suning.com has been Bank Provision based on the
Commercial Management Co. Ltd. 358855.97 received collection estimated recoverable
normally amount
Payment
Nanjing Jianye Suning Yigou Plaza has been Bank Provision based on the
Commercial Management Co. Ltd. 776062.11 received collection estimated recoverable
normally amount
Payment
Baotou Galaxy Suning Yigou Plaza Co. 504733.73 has been Bank
Provision based on the
Ltd. received collection estimated recoverable
normally amount
Payment
has been Bank Provision based on theYinchuan Suning.com Plaza Co. Ltd. 636843.63 received collection estimated recoverable
normally amount
Payment
Shanghai Pudong Suning.com has been Bank Provision based on the
Commercial Management Co. Ltd. 818227.34 received collection estimated recoverable
normally amount
Total 3094722.78
107Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(4). Situation of accounts receivable actually written off in the current period
Not applicable
(5) Accounts receivable and contractual assets collected from the debtors which rank the first
five at the end of period
Unit: RMB
Ending balance
Proportion in the of provision for
Accounts Ending Ending balance total ending bad debts of
Company name receivable balance balance of
of accounts balance of accounts
at the end of contractual receivable and accounts receivable and
period assets contractual receivable and provision forassets contractual impairment of
assets contractual
assets
Summary of
accounts
receivable which
ranks the first 81395716.91 387392159.53 21.01% 3973834.24
five at the end of
period
Total 81395716.91 387392159.53 21.01% 3973834.24
6. Contract assets
Not applicable
7. Receivables financing
Not applicable
8. Other receivables
Unit: RMB
Item Ending Balance Opening balance
Other receivables 59436540.53 57725792.00
Total 59436540.53 57725792.00
(1) Interest receivable
1) Classification of interest receivable
Not applicable
2) Important overdue interest
Not applicable
108Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
3). Disclosure under the methods of provision for bad debts by category
Not applicable
4). Status of bad debt provision recovery or reversal for the period
Not applicable
5) Situation of interest receivable actually written off in the current period
Not applicable
(2) Dividends receivable
1) Classification of dividends receivable
Not applicable
2) Important dividends receivable with aging over 1 year
Not applicable
3). Disclosure under the methods of provision for bad debts by category
Not applicable
4). Status of bad debt provision recovery or reversal for the period
Not applicable
5) Situation of dividends receivable actually written off in the current period
Not applicable
(3) Other receivables
1) Classification of other receivables by nature
Unit: RMB
Payment nature Book balance at period end Beginning book balance
Margin and deposits 53774307.13 51775226.86
Employee reserve 3740041.27 1549821.50
Other 6132069.36 8748853.73
Total 63646417.76 62073902.09
109Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
2) Disclosure by aging
Unit: RMB
Aging Book balance at period end Beginning book balance
Within 1 year (including 1 year) 33867092.11 22481619.93
1-2 years 24429192.98 38313327.26
2-3 years 4155060.57 119250.00
More than 3 years 1195072.10 1159704.90
3-4 years 1195072.10 1159704.90
Total 63646417.76 62073902.09
3). Disclosure under the methods of provision for bad debts by category
Unit: RMB
Ending Balance Opening balance
Categor Book balance Bad debt provision Book balance Bad debt provision
y Drawing Book Drawing Book
Amount Scale Amount percent value Amount Scale Amount percent value
ages ages
Provisio
n for
bad
debts 13931 2.19% 13632 97.85% 29928. 14183 13673 50928.on an 47.78 19.78 00 14.90
2.28%86.9096.41%00
individu
al basis
In which:
Provisio
n for
bad
debts 62253
on a 269.98 97.81%
284665940660655
57.454.57%612.53587.1997.72%
2980757674
23.194.91%864.00
combin
ation
basis
In which:
Combin
ation of
margin
and 53259 83.68% 26338 4.95% 50625 51304 26032 48701deposit 849.25 75.69 973.56 601.86 82.65% 77.66 5.07% 324.20
receiva
ble
Combin
ation of
employ
ee 3740041.27 5.88% 0.00%
374001549815498
reserve 41.27 21.50
2.50%0.00%21.50
receiva
ble
110Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Combin
ation of
social
security 508259 508259 284862 284862
advanc .76 0.80% 0.00% .76 .55 0.46% 0.00% .55
es
receiva
ble
Combin
ation of
other 47451 7.46% 212781 4.48% 45323 75163 377445 71388
financin 19.70 .76 37.94 01.28
12.11%.535.02%55.75
gs
Total 63646 100.00 42098 59436 62073 100.00 43481 57725417.76 % 77.23 6.61% 540.53 902.09 % 10.09 7.00% 792.00
Number of categories with provision for bad debts by individual: 1
Category name of provision for bad debts by individual: other accounts receivable
Unit: RMB
Opening balance Ending Balance
Name
Book balance Bad debt Book balance Bad debt Drawing Provisionprovision provision percentages Reason
Other
receivables 1418314.90 1367386.90 1393147.78 1363219.78 97.85%
There is a
dispute
Total 1418314.90 1367386.90 1393147.78 1363219.78
Number of categories with provision for bad debts by combination: 4
Category name of provision for bad debts by combination: combination of margin and deposit receivable
Unit: RMB
Ending Balance
Name
Book balance Bad debt provision Drawing percentages
Combination of margin and
deposit receivable 53259849.25 2633875.69 4.95%
Total 53259849.25 2633875.69
Description of the basis for determining the combination: payments of the same nature have similar credit risk
characteristics.Category name of provision for bad debts by combination: combination of employee reserve receivable
Unit: RMB
Ending Balance
Name
Book balance Bad debt provision Drawing percentages
Combination of employee
reserve receivable 3740041.27 0.00%
Total 3740041.27
Description of the basis for determining the combination: payments of the same nature have similar credit risk
characteristics.Category name of provision for bad debts by combination: combination of social security receivable on behalf of the
payer
Unit: RMB
Name Ending Balance
111Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Book balance Bad debt provision Drawing percentages
Combination of social
security advances 508259.76 0.00%
receivable
Total 508259.76
Description of the basis for determining the combination: payments of the same nature have similar credit risk
characteristics.Category name of provision for bad debts by combination: other accounts receivable
Unit: RMB
Ending Balance
Name
Book balance Bad debt provision Drawing percentages
Combination of other
financings 4745119.70 212781.76 4.48%
Total 4745119.70 212781.76
Description of the basis for determining the combination: payments of the same nature have similar credit risk
characteristics.Provision for bad debts made according to the general expected credit loss model:
Unit: RMB
Stage I Stage II Stage III
Expected Expected credit loss
Bad debt provision credit loss in Expected credit loss Total
the next 12 throughout the duration
throughout the duration
(credit impairment has
months (no credit impairment) occurred)
Balance as of Jan. 1 2024 2980723.19 1367386.90 4348110.09
Balance on Jan. 1 2024 in
the current period
- Transfer to phase II
- Transfer to phase III
- Reversal to phase II
- Reversal to phase I
Provision in the current
period 40599.80 40599.80
Reversal in the current
period -129992.21 -49000.00 -178992.21
Write-off in the current
period
Write-off in the current
period
Other changes 159.55 159.55
112Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Balance as of June 30 2024 2891490.33 1318386.90 4209877.23
The basis for the division of each stage and the ratio of provisions for bad debts
The phase I is the bad debt provision for other receivables within one year. The phase II is the bad debt provision for
accounts receivable over one year that have not been individually assessed. The phase III is the bad debt provision for
individually assessed accounts receivable.Changes in book balance with significant amount of loss provision in the current period
Not applicable
4). Status of bad debt provision recovery or reversal for the period
Provision for bad debts in the current period:
Unit: RMB
Amount of change for the period
Category Opening balance Recovered Ending
Provision or Write-off or Other Balance
transferred impairment
Bad debt provision 4348110.09 40599.80 -178992.21 159.55 4209877.23
Total 4348110.09 40599.80 -178992.21 159.55 4209877.23
Where the bad-debt provision amount recovered or reversed this period is important:
Not applicable
5) Situation of other accounts receivable actually written off in the current period
Not applicable
6). Other receivables collected from the debtors which rank the first five at the end of period
Unit: RMB
Proportion in
the total ending End-of-period
Company name Paymentnature Ending Balance Aging balance of
balance of
other provision for bad
receivables debt
Summary of other
accounts
receivable which Deposits and
rank the first five margin 8634010.68
Within 1 year 1-
2 years 13.57% 431700.53
at the end of
period
Total 8634010.68 13.57% 431700.53
7) Presented in other receivables due to centralized management of funds
Not applicable
113Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
9. Prepayments
(1) Prepayments are presented by aging
Unit: RMB
Ending Balance Opening balance
Aging
Amount Scale Amount Scale
Within 1 year 6569774.50 100.00% 6564760.64 99.90%
1-2 years 0.00% 6479.34 0.10%
Total 6569774.50 6571239.98
Reasons for not timely settlement of prepayments with aging over 1 year and significant amount:
Not applicable
(2). Top five of advances to suppliers in terms of the ending balance presented by advance
receivers
Company name Ending Balance Percentage of total advances (%)
Summary of prepayments collected from
the debtors which rank the first five at 4185055.26 63.70%
the end of period
10. Inventories
Whether the Company needs to comply with the disclosure requirements of the real estate industry
No
(1) Classification of inventory
Unit: RMB
Ending Balance Opening balance
Provision for Provision for
impairment of impairment of
Item
Book balance inventory or Book value Book balance inventory orcontract contract Book value
performance performance
costs costs
Raw 161344020.8 5401893.56 155942127.2 167281491.8material 5 9 4 5290855.71
161990636.1
3
Unfinishe
d 10779027.93 10779027.93 12060525.88 12060525.88
products
Merchan
dise 2026413760.86 64803673.59
1961610087.1993236975.
273666621962.09
1926615013.
inventory 27
Total 2198536809. 70205567.15 2128331242. 2172578993. 2100666175.64 49 08 71912817.80 28
114Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(2) Data resources recognized as inventory
Not applicable
(3) Provision for impairment of inventory or contract performance costs
Unit: RMB
Increase for the current period Decrease amount in the current
Item Opening
period Ending
balance
Provision Other Reversal or
Balance
write-off Other
Raw
material 5290855.71 253915.61 142877.76 5401893.56
Merchan
dise 66621962.09 126606.77 7749.55 1952644.82 64803673.59
inventory
Total 71912817.80 380522.38 7749.55 2095522.58 70205567.15
Notes to provision for inventory write-down
Specific basis for determining the net realizable
Item value/residual consideration and the cost to be Reversal or write-off in the current period
incurred Reasons to provision for inventory write-down
Raw Estimated selling prices of manufactured products
The factors affecting the previous write-down of
material minus estimated costs to completion estimated
inventory value have disappeared resulting in
selling expenses and related taxes and surcharges the net realizable value of inventory higher thanits book value
Merchandis Estimated selling price minus estimated sales The inventory with provision for inventory
e inventory expenses and related taxes depreciation at the beginning of the period hasbeen consumed/sold in the current period
The provision for inventory depreciation by combination
Not applicable
Provision criteria for provision of inventory depreciation reserve by combination
Not applicable
(4) Notes to the ending balance of inventories including the capitalization amount of
borrowing costs
Not applicable
(5) Notes to the amortization amount of contract performance costs in the current period
Not applicable
11. Assets held for sale
Not applicable
12. Non-current assets due within one year
Not applicable
115Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(1) Debt investments due within one year
Not applicable
(2) Other debt investments due within one year
Not applicable
13. Other current assets
Unit: RMB
Item Ending Balance Opening balance
Amount of value-added tax deduction 14705036.13 21032239.30
Input tax to be recognized 13980706.95 31717607.91
Prepaid income tax 384254.22 1364632.40
Other taxes prepaid 491655.06
Fixed deposits 45001594.79
Other 14475773.82 18134912.20
Total 89039020.97 72249391.81
14. Debt investments
(1) Debt investments situation
Not applicable
(2) Important debt investments at the end of the period
Not applicable
(3) Provision for impairment
Not applicable
(4). Situation of debt investments actually written off in the current period
Not applicable
15. Other debt investments
(1) Other debt investments situation
Not applicable
(2) Other important debt investments at the end of the period
Not applicable
116Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(3) Provision for impairment
Not applicable
(4). Situation of other debt investments actually written off in the current period
Not applicable
16. Investment in other equity instruments
Not applicable
17. Long-term receivables
(1) Long-term receivables
Not applicable
(2). Disclosure under the methods of provision for bad debts by category
Not applicable
(3) Status of bad debt provision recovery or reversal for the period
Not applicable
(4). Situation of accounts receivable actually written off in the current period
Not applicable
18. Long-term equity investments
Unit: RMB
Increase or decrease in the current period
Invest
Begin End-ment Other CashBegin ning of-incom compr divide
Endin
ning balan Provis g periodThe balan ce of Additi Reduc
e or ehens Other nds or ion for balan
invest balance provisi onal tion of
loss
recog ive chang
profits ce of
ee invest invest declar
impair Other ce
(book on for provisi
ment ment nized
incom es in ment (book
value) impair under e equity
ed to accru value) on for
ment equity adjust
be impair
distrib ed ment
metho ments uted
d
1. Joint ventures
2. Associated enterprise
Shang 5186 8987 5195
117Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
hai 2607. 2.06 2479.Watch 30 36
Indust
ry
Co.Ltd.Sub- 5186 5195
total 2607.
89872479.
302.0636
5186
Total 2607. 8987
5195
302.06
2479.
36
The recoverable amount is determined by the net amount of the fair value less the disposal expenses
Not applicable
The recoverable amount is determined at the present value of the expected future cash flows
Not applicable
Reasons for the difference between the aforementioned information and the information used in the impairment test of
previous years or external information
Not applicable
Reasons for the difference between the information used in the company's impairment test in previous years and the
actual situation in the current year
Not applicable
Other notes
Not applicable
19. Other non-current financial assets
Not applicable
20. Investment properties
(1) Investment property measured at cost
Unit: RMB
Item Houses and Construction instructures Land use rights progress Total
I. Original book value
1. Beginning
balance 620335023.89 620335023.89
2. Increase for
the current period
(1) Outsourcing
(2) Transfers from
inventories\fixed
assets\construction
in progress
(3) Increase from
business
118Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
combinations
3. Decrease for
the current period
(1) Disposal
(2) Other transfers
out
4. Ending
balance 620335023.89 620335023.89
II. Accumulated
depreciation and
amortization
1. Beginning
balance 260079191.75 260079191.75
2. Increase for
the current period 7846994.22 7846994.22
(1) Provision or
amortization 7846994.22 7846994.22
(2) Transfer from
fixed assets
3. Decrease for
the current period
(1) Disposal
(2) Other transfers
out
4. Ending
balance 267926185.97 267926185.97
III. Impairment
provision
1. Beginning
balance
2. Increase for
the current period
(1) Provision
3. Decrease for
the current period
(1) Disposal
(2) Other transfers
out
4. Ending
balance
IV. Book value
1. Ending book
value 352408837.92 352408837.92
2. Beginning
book value 360255832.14 360255832.14
The recoverable amount is determined by the net amount of the fair value less the disposal expenses
Not applicable
The recoverable amount is determined at the present value of the expected future cash flows
119Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Not applicable
Reasons for the difference between the aforementioned information and the information used in the impairment test of
previous years or external information
Not applicable
Reasons for the difference between the information used in the company's impairment test in previous years and the
actual situation in the current year
Not applicable
Other notes:
Not applicable
(2) Investment property measured at fair value
Not applicable
(3) Convert to investment property and measure at fair value
Not applicable
(4) Investment property without certificate of title
Not applicable
21. Fixed assets
Unit: RMB
Item Ending Balance Opening balance
Fixed assets 345651268.72 355785354.68
Liquidation of fixed assets 0.00 0.00
Total 345651268.72 355785354.68
(1). Status of fixed assets
Unit: RMB
Item Houses and Machinery Transport Electronic Otherbuildings equipment equipment equipment equipment Total
1. Original
book value:
1. Beginning 441589632.6 130667789.2
balance 3 1 13277093.83 50657219.07 44094254.35
680285989.0
9
2. Increase for
the current 20027.36 2328766.75 1473437.61 663176.09 4485407.81
period
(1)
Acquisitions 2320494.70 1473351.07 663176.09 4457021.86
(2) Transfer
from
construction in
progress
120Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(3) Increase
from business
combinations
(4). Exchange
differences
arising from
foreign 20027.36 8272.05 86.54 28385.95
currency
transactions
3. Decrease
for the current 3199869.02 1423289.61 1026085.81 680665.17 453955.74 6783865.35
period
(1) Disposal
or scrapping 570550.00 128105.05 1026085.81 631965.29 335369.81 2692075.96
(2). Exchange
differences
arising from
foreign 2629319.02 1295184.56 48699.88 118585.93 4091789.39
currency
transactions
4. Ending 438409790.9 131573266.3
balance 7 5 12251008.02 51449991.51 44303474.70
677987531.5
5
II.Accumulated
depreciation
1. Beginning 152207027.4 83133593.32 12078669.40 37956542.09 39124802.19 324500634.4balance 1 1
2. Increase for
the current 6534045.86 4469874.54 167437.90 1580401.82 674908.55 13426668.67
period
(1) Provision 6517095.45 4462019.71 167437.90 1580319.60 674908.55 13401781.21
(2). Exchange
differences
arising from
foreign 16950.41 7854.83 82.22 24887.46
currency
transactions
3. Decrease
for the current 2238221.77 1295744.31 974781.52 597648.74 484643.91 5591040.25
period
(1) Disposal
or scrapping 395811.20 113925.59 974781.52 554287.43 366283.77 2405089.51
(2). Exchange
differences
arising from
foreign 1842410.57 1181818.72 43361.31 118360.14 3185950.74
currency
transactions
4. Ending 156502851.5
balance 0 86307723.55 11271325.78 38939295.17 39315066.83
332336262.8
3
III. Impairment
provision
1. Beginning
121Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
balance
2. Increase for
the current
period
(1) Provision
3. Decrease
for the current
period
(1) Disposal
or scrapping
4. Ending
balance
IV. Book value
1. Ending 281906939.4
book value 7 45265542.80 979682.24 12510696.34 4988407.87
345651268.7
2
2. Beginning 289382605.2 355785354.6
book value 2 47534195.89 1198424.43 12700676.98 4969452.16 8
(2) Temporarily idle fixed assets
Not applicable
(3) Fixed assets leased out through operating leases
Not applicable
(4) Fixed assets without certificates of title
Unit: RMB
Item Book value Reasons for not completing thecertificate of title
Houses and buildings 182663.79 Defects in property rights
(5) Impairment test of fixed assets
Not applicable
(6) Liquidation of fixed assets
Not applicable
22. Construction in progress
Not applicable
(1) Status of construction in progress
Not applicable
122Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(2) Changes in important construction in progress in the current period
Not applicable
(3) Status of impairment of construction in progress in the current period
Not applicable
(4) Status of impairment test of construction in progress
Not applicable
(5) Project materials
Not applicable
23. Productive biological assets
(1) Productive biological assets measured at cost
Not applicable
(2) Impairment test of productive biological assets measured at cost
Not applicable
(3) Productive biological assets measured at fair value
Not applicable
24. Oil and gas assets
Not applicable
25. Right-of-use assets
(1) Right-of-use assets situation
Unit: RMB
Item Houses and buildings Total
I. Original book value
1. Beginning balance 153209897.81 153209897.81
2. Increase for the current period 54191179.24 54191179.24
(1) Lease 54188231.32 54188231.32
(2). Exchange differences arising
from foreign currency transactions 2947.92 2947.92
3. Decrease for the current
period 79521232.18 79521232.18
123Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(1) Disposal 1437591.74 1437591.74
(2) The lease expires 78083640.44 78083640.44
4. Ending balance 127879844.87 127879844.87
II. Accumulated depreciation
1. Beginning balance 43757416.17 43757416.17
2. Increase for the current period 52810274.43 52810274.43
(1) Provision 52808948.49 52808948.49
(2). Exchange differences arising
from foreign currency transactions 1325.94 1325.94
3. Decrease for the current
period 78074492.72 78074492.72
(1) Disposal 928227.37 928227.37
(2) The lease expires 77146265.35 77146265.35
4. Ending balance 18493197.88 18493197.88
III. Impairment provision
1. Beginning balance
2. Increase for the current period
(1) Provision
3. Decrease for the current
period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 109386646.99 109386646.99
2. Beginning book value 109452481.64 109452481.64
(2) Impairment test of right-of-use assets
Not applicable
26. Intangible assets
(1) Intangible assets
Unit: RMB
Item Land userights Patent right
Non-Patent Software Right to use
Technology] system trademark Total
I. Original
book value
1. Beginning
balance 34933822.40 35242672.55 16599485.22 86775980.17
2. Increase for
the current 1006663.53 5867.94 1012531.47
period
(1)
Acquisitions 1006663.53 5867.94 1012531.47
(2) Internal
124Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
research and
development
(3) Increase
from business
combinations
3. Decrease
for the current 7357.60 0.43 7358.03
period
(1) Disposal 7357.60 0.43 7358.03
4. Ending
balance 34933822.40 36241978.48 16605352.73 87781153.61
II.Accumulated
amortization
1. Beginning
balance 17249475.30 27593853.68 10268270.42 55111599.40
2. Increase for
the current 366776.65 1427172.01 27392.70 1821341.36
period
(1) Provision 366776.65 1427172.01 27392.70 1821341.36
3. Decrease
for the current 367.88 367.88
period
(1) Disposal 367.88 367.88
4. Ending
balance 17616251.95 29020657.81 10295663.12 56932572.88
III. Impairment
provision
1. Beginning
balance
2. Increase for
the current
period
(1) Provision
3. Decrease
for the current
period
(1) Disposal
4. Ending
balance
IV. Book value
1. Ending
book value 17317570.45 7221320.67 6309689.61 30848580.73
2. Beginning
book value 17684347.10 7648818.87 6331214.80 31664380.77
The proportion of intangible assets formed by the Company's internal research and development at the end of the
current period to the balance of intangible assets is 0.00%
125Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(2) Data resources recognized as intangible assets
Not applicable
(3) Land use right without certificate of title
Not applicable
(4) Impairment test of intangible assets
Not applicable
27. Goodwill
(1) Original book value of goodwill
Not applicable
(2) Provision for impairment of goodwill
Not applicable
(3) Information on the asset group or combination of asset groups where the goodwill is
located
Not applicable
(4) Specific determination method of recoverable amount
Not applicable
(5) Completion of performance commitments and corresponding impairment of goodwill
Not applicable
28. Long-term deferred expenses
Unit: RMB
Item Opening balance Increase for the
Amortization
current period amount for the Other decreases Ending Balancecurrent period
Counter
production fee 19008343.84 8377686.40 9745039.42 1078053.51 16562937.31
Decoration fee 96297010.20 27813498.18 24501735.62 177816.39 99430956.37
Other 7019001.09 441460.90 3258250.73 85902.48 4116308.78
Total 122324355.13 36632645.48 37505025.77 1341772.38 120110202.46
126Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
29. Deferred tax assets/deferred tax liabilities
(1) Deferred income tax assets without offset
Unit: RMB
Ending Balance Opening balance
Item Deductible
temporary Deferred income tax
Deductible
temporary Deferred income tax
difference assets difference assets
Provision for impairment
of assets 103493511.38 23491810.64 107672653.16 24371732.35
Unrealized profits from
internal transactions 61698023.06 15215058.31 83620908.60 20855280.62
Deductible losses 132264495.42 31790112.52 126562143.51 31197892.87
Equity incentive 8686896.23 2038524.01 6263007.85 1449733.06
Publicity expenses that
can be carried forward to 4438509.76 1109627.44
subsequent years
Lease liabilities 162217563.49 40554390.88 109682960.95 27420740.27
Other 5150706.68 1287676.67 5168527.80 1292131.95
Total 477949706.02 115487200.47 438970201.87 106587511.12
(2) Deferred income tax liabilities without offset
Unit: RMB
Ending Balance Opening balance
Item Taxable temporary Taxable temporary
differences Deferred tax liability differences Deferred tax liability
One-time pre-tax
deduction of fixed assets 29215672.67 4382350.90 28437227.07 4265584.06
Right-of-use assets 162695287.60 40673821.90 109212305.15 27303076.29
Total 191910960.27 45056172.80 137649532.22 31568660.35
(3) Deferred tax assets or liabilities presented by net amount after offset
Unit: RMB
Amount of deferred Ending balance of Amount of deferred Balance of deferred
Item tax assets and deferred tax assets
tax assets and tax assets or
liabilities offset at the or liabilities after liabilities offset at the liabilities after offset
end of the period offset beginning of the at the beginning ofperiod the period
Deferred income tax
assets 39593331.51 75893868.97 26359739.66 80227771.46
Deferred tax liability 39593331.51 5462841.29 26359739.66 5208920.69
(4) Details of unrecognized deferred tax assets
Unit: RMB
Item Ending Balance Opening balance
127Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Provision for impairment of assets 3444117.03 3395341.37
Deductible losses 52393966.99 52523345.89
Total 55838084.02 55918687.26
(5) The deductible losses of the unrecognized deferred tax assets will become due in the
following years:
Unit: RMB
Year Ending amount Beginning amount Remarks
202421759088.2123049503.37
202527823763.8929473842.52
2026
2027
2028
2029
2030
20312811114.89
Total 52393966.99 52523345.89
30. Other non-current assets
Unit: RMB
Ending Balance Opening balance
Item
Book balance Impairment Book value Book balance Impairmentprovision provision Book value
Prepayment for
long-term 2185332.57 2185332.57 9434627.17 9434627.17
assets
Total 2185332.57 2185332.57 9434627.17 9434627.17
31. Assets with restricted ownership or usage rights
Not applicable
32. Short-term loans
(1) Classification of short-term debts
Unit: RMB
Item Ending Balance Opening balance
Credit loans 320000000.00 250000000.00
Unexpired interest payable 207333.32 187763.87
Total 320207333.32 250187763.87
(2) Overdue and outstanding short-term debts
Not applicable
128Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
33. Trading financial liabilities
Not applicable
34. Derivative financial liabilities
Not applicable
35. Notes payable
Not applicable
36. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
Item Ending Balance Opening balance
Payable for goods 109737172.05 148281377.41
Materials payable 20600336.04 23371455.42
Construction payables 1034800.53 2173074.88
Total 131372308.62 173825907.71
(2). Significant payable aging over 1 year or overdue
Not applicable
37. Other payables
Unit: RMB
Item Ending Balance Opening balance
Dividend payable 2907796.73 2058352.24
Other payables 107885270.30 119879448.83
Total 110793067.03 121937801.07
(1) Interest payable
Not applicable
(2) Dividends payable
Unit: RMB
Item Ending Balance Opening balance
Common stock dividends 2907796.73 2058352.24
Total 2907796.73 2058352.24
129Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(3) Other payables
1). Other payable listed by nature
Unit: RMB
Item Ending Balance Opening balance
Deposits and margin 33574986.55 34075198.63
Expenses for store activities 21585739.68 17335559.49
Decoration fee 4893296.60 10214019.04
Restricted stock repurchase
obligations 13379181.81 14304862.81
Other 34452065.66 43949808.86
Total 107885270.30 119879448.83
2) Other significant payable with aging over 1 year or overdue
Unit: RMB
Item Ending Balance Reasons for non-repayment or non-transfer
Property lease deposit 14498179.29 Settlement period not reached
Total 14498179.29
38. Advance receipts
(1) Presentation of advances received
Unit: RMB
Item Ending Balance Opening balance
Advance rent 8242987.93 10267758.31
Total 8242987.93 10267758.31
(2) Significant advance receivable with aging over 1 year or overdue
Not applicable
39. Contract liabilities
Unit: RMB
Item Ending Balance Opening balance
Payment for goods 18804742.85 12286243.62
Total 18804742.85 12286243.62
Significant contractual liabilities with aging over 1 year
Not applicable
Significant changes in book value during the reporting period amounts and reasons
Not applicable
130Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
40. Employee compensation
(1). Employee compensation breakdown
Unit: RMB
Item Opening balance Increase in the Decrease in thecurrent period current period Ending Balance
I. Short-term
compensations 114204051.03 262318167.18 309320717.16 67201501.05
II. Post-employment
benefits - defined 5581451.36 23863509.40 23378302.45 6066658.31
contribution plans
III. Termination
benefits 299308.21 3044542.52 3326450.73 17400.00
Total 120084810.60 289226219.10 336025470.34 73285559.36
(2). Short-term compensation breakdown
Unit: RMB
Item Opening balance Increase in the Decrease in thecurrent period current period Ending Balance
1. Wages bonus
allowance and 113282042.05 227106252.78 274396607.52 65991687.31
subsidy
2. Staff welfare 162095.02 10037372.97 9883253.98 316214.01
3. Social insurance
premium 78.32 11937649.21 11921628.76 16098.76
Including: medical
insurance premium 10978630.58 10962684.19 15946.38
Work-related
injury insurance 78.32 489199.84 489125.78 152.38
premium
Birth
insurance premium 469818.79 469818.79
Housing provident
funds 13551.00 9652267.10 9488972.22 176845.89
5. Labor Union fee
and staff education 746284.64 3584625.12 3630254.68 700655.08
expenses
Total 114204051.03 262318167.18 309320717.16 67201501.05
(3). Defined contribution plan breakdown
Unit: RMB
Item Opening balance Increase in the Decrease in thecurrent period current period Ending Balance
1. Basic endowment
insurance 208205.97 20260935.24 20251259.03 217882.18
2. Unemployment 379.88 877646.96 877338.68 688.16
131Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
insurance premium
3. Enterprise annuity
payment 5372865.51 2724927.20 2249704.74 5848087.97
Total 5581451.36 23863509.40 23378302.45 6066658.31
41. Taxes payable
Unit: RMB
Item Ending Balance Opening balance
VAT 23145061.97 38997243.97
Enterprise income tax 24686272.16 21276050.77
Individual income tax 1023995.40 1101633.76
Urban maintenance and construction
tax 184082.84 1047680.77
Education surcharges 132497.14 748598.11
Other 3380962.23 1016953.93
Total 52552871.74 64188161.31
42. Liabilities held for sale
Not applicable
43. Non-current liabilities due within one year
Unit: RMB
Item Ending Balance Opening balance
Lease liabilities due within one year 69943530.95 66399004.20
Total 69943530.95 66399004.20
44. Other current liabilities
Unit: RMB
Item Ending Balance Opening balance
Output tax amount to be transferred 2078002.76 1589635.30
Total 2078002.76 1589635.30
45. Long-term loans
(1) Classification of long-term loans
Not applicable
46. Bonds payable
(1) Bonds payable
Not applicable
132Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(2) Increase/decrease in bonds payable (excluding preferred stock perpetual bonds and other
financial instruments divided into financial liabilities)
Not applicable
(3) Notes to convertible corporate bonds
Not applicable
(4) Description of other financial instruments divided into financial liabilities
Not applicable
47. Lease liabilities
Unit: RMB
Item Ending Balance Opening balance
Houses and buildings 111899576.39 113786386.87
Unrecognized financing charges -2988410.05 -3861030.15
Lease liabilities due within one year -69943530.95 -66399004.20
Total 38967635.39 43526352.52
48. Long-term payable
Not applicable
(1) Long-term payable listed by nature
Not applicable
(2) Special payable
Not applicable
49. Long-term employee compensation payable
(1) Table of long-term employee compensation payable
Not applicable
(2) Changes in defined benefit plans
Not applicable
50. Estimated liabilities
Not applicable
133Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
51. Deferred income
Unit: RMB
Item Opening Increase in the Decrease in thebalance current period current period Ending Balance Reasons for formation
Government
subsidies 952785.69 952785.69
Total 952785.69 952785.69
Other notes:
Deferred income related to government subsidies
For details of the Company's government subsidies please refer to Note XI.2 Liabilities related to government
subsidies.
52. Other non-current liabilities
Not applicable
53. Capital stock
Unit: RMB
Increase/decrease in this change (+ -)
Capital
Opening Right conversion
balance Ending BalanceIPO s of Other Sub-total
issue provident
funds
Total
number
of 415219970.00 -9355763.00 -9355763.00 405864207.00
shares
Other notes:
According to the Plan on the Repurchase of Partial Domestic Listed Foreign-Invested Shares (B Shares)
deliberated and adopted at the 11th meeting of the 10th Board of Directors held on March 16 2023 and the 2022
Annual General Meeting of Shareholders held on April 26 2023 the Company is agreed to use its own funds to
repurchase part of domestic listed foreign-invested shares (B Shares) through centralized bidding transactions. The
cancellation of 9355763 B shares repurchased by the company has been completed at the China Securities
Depository and Clearing Corporation Limited (CSDC) Shenzhen Branch on May 10 2024.
54. Other equity instruments
(1) Basic information of preferred stock perpetual bonds and other financial instruments issued at the end of
the period
Not applicable
134Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(2) Table of changes in preferred stock perpetual bonds and other financial instruments issued at the end of
the period
Not applicable
55. Capital reserve
Unit: RMB
Item Opening balance Increase in the Decrease in thecurrent period current period Ending Balance
Capital premium (equity
premium) 968257185.91 54984906.42 913272279.49
Other capital reserves 21901847.26 906067.21 22807914.47
Total 990159033.17 906067.21 54984906.42 936080193.96
Other notes including the changes in the current period and the reasons for the changes:
1. According to the Proposal on Granting Restricted Stocks to the Incentive Objects of the Company's 2018 A-
Shares Restricted Stock Incentive Plan (Phase II) deliberated and approved by the Board of Directors and the General
Meeting of Shareholders of the Company in 1H24 the services obtained by the Company from the above incentive
objects were included in the relevant costs or expenses and the "other capital reserves" was increased by
RMB906067.21 accordingly.
2. As stated in Note VII.53 the Company reduced the capital reserve by RMB54984906.42 for the repurchase
and cancellation of B shares.
56. Treasury stock
Unit: RMB
Item Opening balance Increase in the Decrease in thecurrent period current period Ending Balance
Reduction of
registered capital for 64340669.42 64340669.42
repurchase
Restricted share-
based payment 14304862.81 859048.00 13445814.81
Total 78645532.23 65199717.42 13445814.81
Other notes including the changes in the current period and the reasons for the changes:
1. As stated in Note VII.53 the Company reduced the treasury stock by RMB64340669.42 for the repurchase
and cancellation of B shares.
2. In 1H24 the treasury stock was reduced by RMB859048.00 for the cash dividends corresponding to the
remaining restricted stocks.
57. Other comprehensive income
Unit: RMB
Amount for the current period
Item Opening Amount Less: Less:
Less: Net Net Ending
balance before Amounts Amounts income income income Balance
income previously previously tax attributabl attributabl
tax for the included included expenses e to e to
135Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
current in other in other parent minority
period comprehe comprehe company sharehold
nsive nsive ers
income income for
reclassifie retained
d to profit earnings
or loss in in the
the current
current period
period
I. Other
comprehe
nsive
income
that
cannot be
transferre
d to profit
or loss
Including:
changes
in re-
measurem
ent of the
defined
benefit
plan
Other
comprehe
nsive
income
that
cannot be
transferre
d to profit
or loss
under the
equity
method
Changes
in fair
value of
other
equity
instrument
investmen
ts
Changes
in fair
value of
the
company's
credit risk
136Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
II. Other
comprehe
nsive
income
that will be 1932533
--
5.935577527.5577527.
1374780
reclassifie 76 76 8.17
d into
profit or
loss
Including:
other
comprehe
nsive
income
that can
be carried
forward to
profit and
loss under
the equity
method
Changes
in fair
value of
other debt
investmen
ts
Amount of
financial
assets
reclassifie
d into
other
comprehe
nsive
incomes
Provision
for credit
impairmen
t of other
debt
investmen
ts
Cash flow
hedge
reserves
Translatio
n - -
difference 1932533 5577527. 5577527. 1374780
of foreign 5.93 76 76 8.17
currency
financial
137Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
statement
s
Total
other 1932533 - -comprehe 5577527. 5577527. 1374780
nsive 5.93 76 76 8.17
income
58. Special reserves
Unit: RMB
Item Opening balance Increase in the Decrease in thecurrent period current period Ending Balance
Work safety charges 3223158.06 760556.40 218699.04 3765015.42
Total 3223158.06 760556.40 218699.04 3765015.42
59. Surplus reserve
Unit: RMB
Item Opening balance Increase in the Decrease in thecurrent period current period Ending Balance
Legal surplus
reserve 213025507.50 213025507.50
Discretionary surplus
reserves 61984894.00 61984894.00
Total 275010401.50 275010401.50
Description of surplus reserves including the changes in the current period and the reasons for the changes:
According to the provisions of the Company Law and the Articles of Association the Company withdraws statutory
surplus reserves at 10% of the net profit. If the cumulative amount of statutory surplus reserves reaches more than
50% of the registered capital of the Company no further allocation is required.
After withdrawing the statutory surplus provident funds the Company may withdraw any surplus provident funds.Upon approval the any surplus provident funds can be used to make up for the losses of previous years or increase
the share capital.
60. Undistributed profits
Unit: RMB
Item Increase for the current Previous period
Undistributed profit at the end of the
previous period before adjustment 1709513385.76 1479706638.53
Total adjusted undistributed profit at
the beginning of the period (increase 0.00 0.00
+ decrease -)
Undistributed profit at the beginning
of the period after adjustment 1709513385.76 1479706638.53
Add: Net profit attributable to owners
of the parent company for the current 147138482.34 333178102.37
period
138Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Less: withdrawal of legal surplus
reserves 0.00 0.00
Common stock dividends
payable 162345682.81 103371355.14
Undistributed profit at the end of the
period 1694306185.29 1709513385.76
Details of undistributed profit at the beginning of the period after adjustment
1) Due to the retrospective adjustment of the Accounting Standards for Business Enterprises and its relevant new
provisions the retained profit at the beginning of the period was affected by RMB0.00.
2) Due to the change in accounting policies the retained profit at the beginning of the period was affected by
RMB0.00.
3) Due to the correction of major accounting errors the retained profit at the beginning of the period was affected
by RMB0.00.
4) Due to the change in the scope of consolidation caused by the same control the retained profit at the beginning
of the period was affected by RMB0.00.
5) The total impact of other adjustments on the retained profit at the beginning of the period was RMB0.00.
61. Operating income and operating costs
Unit: RMB
Amount for the current period Amount for the previous period
Item
Revenue Cost Revenue Cost
Main business 2070514213.15 1304312255.31 2356716526.00 1512310635.56
Other businesses 5883698.17 170200.24 7788736.56 216846.27
Total 2076397911.32 1304482455.55 2364505262.56 1512527481.83
Breakdown of operating income and operating cost:
Unit: RMB
Classification of Divisional 1 Total
contracts Operating revenue Operating cost Operating revenue Operating cost
Business type
In which:
Watch brand
business 384620560.57 121046208.60 384620560.57 121046208.60
Watch retail service
business 1526078368.10 1087364062.78 1526078368.10 1087364062.78
Precision technology
business 88908749.85 77451749.76 88908749.85 77451749.76
Leasing business 70906534.63 18450234.17 70906534.63 18450234.17
Other 5883698.17 170200.24 5883698.17 170200.24
Classified by
business area
In which:
South China 985168650.24 623886476.28 985168650.24 623886476.28
Northwest China 299728304.42 183377627.30 299728304.42 183377627.30
North China 67039768.59 36074332.54 67039768.59 36074332.54
East China 258928020.96 163307282.94 258928020.96 163307282.94
Northeast China 175024033.83 115936550.01 175024033.83 115936550.01
Southwest China 290509133.28 181900186.48 290509133.28 181900186.48
139Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Information related to performance obligations:
See Note V.37 for details.Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period the revenue corresponding to the performance obligations that have been
signed but not performed or not completed is RMB0.00.Information about variable consideration in the contract:
Not applicable
Changes in major contracts or adjustments to major transaction prices:
Not applicable
62. Taxes and surcharges
Unit: RMB
Item Amount for the current period Amount for the previous period
Consumption tax 913936.41 1764057.54
Urban maintenance and construction
tax 3480924.40 4791269.83
Education surcharges 2468662.07 3381982.77
Property tax 3689322.24 3557771.54
Land use tax 203766.80 186994.62
Vehicle and vessel usage tax 1020.00 2880.00
Stamp duty 1095430.07 1492951.96
Other 407395.56 584547.81
Total 12260457.55 15762456.07
63. Administrative expenses
Unit: RMB
Item Amount for the current period Amount for the previous period
Employee remuneration 66869323.72 83415424.92
Depreciation and amortization 10112949.88 11499296.13
Travel expense 1603647.72 2036742.28
Office allowance 1670705.64 1561690.78
Fees for hiring intermediary agencies 1961271.79 1750354.69
Water and electricity property and
rental fees 1784853.95 1735898.86
Business entertainment expenses 456485.67 567726.27
Automobile and transportation
expenses 598205.06 919436.00
Communication charges 173259.63 195521.76
Other 3983229.48 939637.92
Total 89213932.54 104621729.61
64. Selling expenses
Unit: RMB
Item Amount for the current period Amount for the previous period
140Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Employee remuneration 181510506.64 184843963.06
Shopping malls and rental expenses 72573677.88 82289084.29
Advertising exhibition and marketing
expenses 73779075.70 66569380.88
Depreciation and amortization 91305090.93 91843176.93
Packing expenses 4665459.60 4588450.00
Water and electricity and property
management fees 11430327.96 11172272.71
Transport cost 2742617.08 2972928.76
Office allowance 2697327.59 2929620.97
Travel expense 3648244.84 3826254.03
Business entertainment expenses 2008292.89 1947349.51
Other 3424381.29 3291148.06
Total 449785002.40 456273629.20
65. Research and development expenses
Unit: RMB
Item Amount for the current period Amount for the previous period
Employee remuneration 19756648.13 22913768.63
Sample and material costs 1285353.22 663576.68
Mold fees 318637.69 -4970.13
Depreciation and amortization 2382614.08 2243045.93
Technical cooperation fee 1469929.58 444619.97
Other 2312815.63 1901429.46
Total 27525998.33 28161470.54
66. Financial expenses
Unit: RMB
Item Amount for the current period Amount for the previous period
Interest expense 5169603.47 6690859.35
Less: interest income 2185535.51 2432180.03
Exchange gains and losses 944148.29 1335231.32
Handling fees and others 5694581.34 6594306.18
Total 9622797.59 12188216.82
67. Other income
Unit: RMB
Sources of other income Amount for the current period Amount for the previous period
Government subsidies 1414439.38 6691609.41
Personal income tax service fee
refund 511868.05
Additional deduction of VAT 1177577.07
68. Net exposure hedging income
Not applicable
141Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
69. Gains from changes in fair value
Not applicable
70. Investment income
Unit: RMB
Item Amount for the current period Amount for the previous period
Long-term equity investment income
accounted for using the equity 89872.06 -1697481.65
method
Interest income from fixed deposits 223962.11
Total 313834.17 -1697481.65
71. Credit impairment losses
Unit: RMB
Item Amount for the current period Amount for the previous period
Losses from bad debts in notes
receivable 99659.19 621723.41
Losses from bad debt in accounts
receivable 2486626.83 3558352.90
Losses from bad debt in accounts
receivable 138392.41 153871.31
Total 2724678.43 4333947.62
72. Asset impairment losses
Unit: RMB
Item Amount for the current period Amount for the previous period
1. Inventory depreciation loss and
contract performance cost 28336.82
impairment loss
2. Losses from impairment of long-
term equity investments
3. Losses from impairment of
investment properties
4. Losses from impairment of fixed
assets
5. Losses from impairment of project
materials
6. Losses from impairment of
construction in progress
7. Losses from impairment of
productive biological assets
8. Losses from impairment of oil and
gas assets
9. Losses from impairment of
142Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
intangible assets
10. Losses from impairment of
goodwill
11. Losses from impairment of
contract assets
12. Others
Total 28336.82
73. Income from asset disposals
Unit: RMB
Source of income from assets
disposal Amount for the current period Amount for the previous period
Gains or losses from disposal of fixed
assets 2871991.80 -89254.33
Gains or losses on disposal of right-
of-use assets 34218.87 12564.60
Total 2906210.67 -76689.73
74. Non-operating income
Unit: RMB
Item Amount for the current Amount for the previous
Amount included in the
period period current non-recurring profitand loss
Income from liquidated
damages 685500.07 286740.28 685500.07
Payable not required to be
paid 250659.03 226699.03 250659.03
Income from rights
protection and 397868.50 397868.50
compensation
Other 44111.25 83084.52 44111.25
Total 1378138.85 596523.83 1378138.85
75. Non-operating expenditure
Unit: RMB
Item Amount for the current Amount for the previous
Amount included in the
period period current non-recurring profitand loss
Losses from non-monetary
asset exchange
External donation 243626.35 243626.35
Fines and overdue fines 1348.47 208833.38 1348.47
Liquidated damages 4075.11 54416.71 4075.11
Other 29783.42 28351.09 29783.42
Total 278833.35 291601.18 278833.35
143Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
76. Income tax expense
(1) Table of income tax expense
Unit: RMB
Item Amount for the current period Amount for the previous period
Current income tax expenses 41957212.02 52147601.16
Deferred income tax expense 4587823.09 4983918.40
Total 46545035.11 57131519.56
(2) Accounting profit and income tax expense adjustment process
Unit: RMB
Item Amount for the current period
Gross profit 193683517.45
Income tax expenses calculated at statutory/applicable
tax rate 48420879.36
Effect of different tax rates applicable to subsidiaries -1174196.24
Effect of adjusting income tax in prior periods 526448.25
Effect of non-taxable income -22468.02
Effect of non-deductible costs expenses and losses 1066134.58
Tax payment effect of markup deduction of research and
development expenses ("-") -2271762.82
Income tax expense 46545035.11
77. Other comprehensive income
See Note VII.57 for details.
78. Cash flow statement items
(1) Cash related to operating activities
Cash received from other operating activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Deposits and margin 3891700.17 4310663.92
Government subsidies 1685999.41 6623312.69
Commodity promotion expenses 3815826.53 6824544.07
Interest income 2197067.47 2432180.03
Petty cash 1656985.54 3098754.09
Other 9515423.83 14009396.39
Total 22763002.95 37298851.19
Notes of cash received from other operating activities
Not applicable
Other cash payments relating to operating activities
Unit: RMB
144Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Item Amount for the current period Amount for the previous period
Deposits and margin 4378182.27 8763786.62
Petty cash 3510492.16 6711750.04
Period expense 171248817.83 162631345.85
Other 6277130.46 4342740.34
Total 185414622.72 182449622.85
Notes of cash paid for other operating activities
Not applicable
(2) Cash related to investing activities
Cash received from other investing activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Recovery of fixed deposits 120049969.61
Total 120049969.61
Cash received from significant investing activities
Not applicable
Cash paid for other investing activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Purchase of fixed deposit products 165092806.07
Total 165092806.07
Cash paid for important investing activities
Not applicable
(3) Cash related to financing activities
Cash received from other financing activities
Not applicable
Cash paid for other financing activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Lease cash outflow 58174682.07 56886698.46
Payment for share repurchase 79409.91 35483644.86
Total 58254091.98 92370343.32
Notes of cash paid for other financing activities:
Not applicable
Changes in liabilities arising from financing activities:
Not applicable
(4) Notes to net presentation of cash flows
Not applicable
145Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(5) Major activities and financial impacts that do not involve current cash receipts and
payments but affect the financial position of the enterprise or may affect the cash flows of the
enterprise in the future
Not applicable
79. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
Additional information Amount in current period Amount of previous period
1. Reconciliation of net profit to cash
flows from operating activities
Net profit 147138482.34 187395067.23
Plus: provision for asset
impairment -2753015.25 -4333947.62
Depreciation of fixed assets
consumption of oil and gas assets 21248775.43 20546291.19
and productive biological assets
Depreciation of right-of-use
asset 52808948.49 50579624.79
Amortization of intangible
assets 1821341.36 1853819.12
Long-term unamortized
expenses 37505025.77 46620603.57
Losses from disposal of fixed
assets intangible assets and other
long-term assets (income to be listed -2906210.67 76689.73
with "-")
Losses from discarding of
fixed assets (income to be listed with
"-")
Losses from fair value
changes (income to be listed with "-")
Financial expenses (income to
be listed with "-") 6113751.76 8026090.67
Investment loss (income to be
listed with "-") -313834.17 1697481.65
Decrease in deferred income
tax assets (increase to be listed with 4333902.49 3681918.71
"-")
Increase in deferred income
tax liabilities (decrease to be listed 253920.60 -57196.06
with "-")
Decrease in inventory
(increase to be listed with "-") -25957816.56 56107015.08
Decrease in operating -29498881.56 -73392204.29
receivables (increase to be listed with
146Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
"-")
Increase in operating payables
(decrease to be listed with "-") -73263593.51 45858589.85
Other
Net Cash Flows from
Operating Activities 136530796.52 344659843.62
II. Significant investing and financing
activities not related to cash deposit
and withdrawal
Conversion of debt into capital
Convertible corporate bonds due
within one year
Fixed assets under financing lease
3. Net change in cash and cash
equivalents
Ending balance of cash 404356009.13 519368795.12
Less: Beginning balance of cash 504629153.71 313747463.64
Add: Ending balance of cash
equivalents
Less: Beginning balance of cash
equivalents
Net increase in cash and cash
equivalents -100273144.58 205621331.48
(2) Net cash paid for acquisition of subsidiaries in the current period
Not applicable
(3) Net cash received from disposal of subsidiaries in the current period
Not applicable
(4). Composition of cash and cash equivalents
Unit: RMB
Item Ending Balance Opening balance
I. Cash 404356009.13 504629153.71
Including: Petty cash 107494.56 178996.87
Bank deposits available for
immediate payment 402139278.38 503187176.88
Other monetary funds available
for immediate payment 2109236.20 1262979.96
II. Cash equivalents
Including: bond investment due within
three months
III. Closing balance of cash and cash
equivalents 404356009.13 504629153.71
147Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Including: cash and cash equivalents
restricted for use by the parent
company or subsidiaries within the 1951883.15 1202601.86
group
(5) The situation where the scope of use is limited but still belongs to the presentation of cash
and cash equivalents
Unit: RMB
Amount in Amount of
Item current previous Reasons for remaining cash and cash equivalents
period period
The remittance of funds deposited in overseas accounts of the
Cash in 1951883.15 1202601.86 company's overseas subsidiaries is restricted which does not affectbank the daily use.Total 1951883.15 1202601.86
(6) Cash not belonging to cash and cash equivalents
Not applicable
(7) Description of other major activities
Not applicable
80. Notes to items of the statement of changes in Owners' equity
Not applicable
81. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Item Foreign currency ending
Balance converted into
balance Conversion exchange rate RMB at the end of theperiod
Cash and bank balances 6824404.89
Including: USD 273845.27 7.1268 1951640.49
EUR 181785.03 7.6617 1392782.33
HKD 1671648.98 0.9127 1525680.59
CHF 245913.79 7.9471 1954301.48
Accounts receivable 6181874.23
Including: USD 406931.54 7.1268 2900119.70
EUR 7.6617
HKD 3390101.20 0.9127 3094077.56
CHF 23615.78 7.9471 187676.97
Other receivables 789748.94
Including: HKD 769061.82 0.9127 701907.34
CHF 11053.29 7.9471 87841.60
148Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Accounts payable 813157.24
Including: USD 1019.00 7.1268 7262.21
HKD 754624.08 0.9127 688730.30
CHF 14743.08 7.9471 117164.73
Other payables 627505.26
Including: USD 9339.10 7.1268 66557.92
HKD 252649.49 0.9127 230588.13
CHF 41569.78 7.9471 330359.20
Long-term loans
Including: USD
EUR
HKD
(2) Description of overseas operating entities including for important overseas operating
entities the main overseas business place functional currency and selection basis shall be
disclosed and the reasons for changes in functional currency shall also be disclosed.Not applicable
82. Leasing
(1) The Company as the lessee
See Note 25 Note 47 and Note 79 for the Company's right-of-use assets lease liabilities and total cash outflow
related to leases. The Company as the lessee is included in the profit and loss as follows:
Item Amount for the current period Amount for the previous period
Interest on lease liabilities 2155222.71 2222605.26
Short-term leases expenses 76946.63 496529.80
Low-value asset leases expenses
Variable lease payments not included in 38721311.76 45887165.30
the measurement of lease liabilities
Revenue from subleasing right-of-use
assets
Sale and leaseback transactions
The Company as the lessee other information as follows:
Leasing activities
The Company's leases are all houses and buildings including short-term leases simplified and treated and leases
other than short-term leases recognized as the right-of-use assets and lease liabilities.Variable lease payments not included in the measurement of lease liabilities
1) Variable lease payments
The lessee has a large number of real estate leases for retail stores and many leases contain variable payment
terms linked to store sales.Many of our real estate leases contain variable lease payment terms linked to the sales volume of the leased
stores. Where possible the Company uses these terms to match lease payments with stores that generate more cash
flows. For individual stores up to 100% of the lease payment can be based on variable payment terms and the sales
scale used is relatively large. In some cases variable payment terms also include the bottom line and upper limit of
annual payment
In 1H24 the variable lease payments included in the current profit and loss were RMB38721311.76.
149Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
2) Renewal option
Many of the lease contracts signed by the Company contain renewal options and the Company has reasonably
estimated the exercise of the renewal options when measuring the lease liabilities to determine the lease term.
3) Termination of lease option
Some of the lease contracts signed by the Company contain the option to terminate the lease. and the Company
has reasonably estimated the exercise of the termination of lease options when measuring the lease liabilities to
determine the lease term.
4) Residual value guarantee
There is no residual value guarantee for the Company's leases.
5) Lease committed by the lessee but not yet started
There is no lease committed by the lessee but not yet started
Simplified treatment of short-term leases or leasing fees for low-value assets
The Company's short-term leases which are simplified in processing include leases with a term of no more than 12
months and without purchase options as well as leases completed within 12 months after the initial implementation of
"Accounting Standard for Business Enterprises No. 21 - Leases." In 1H24 the short-term rental expenses included in
the current profit and loss were RMB76946.63.Circumstances involving sale and leaseback transactions
Not applicable
(2) The Company as the lessor
Operating lease as a lessor
Unit: RMB
Including: income related to variable
Item Leasing income lease payments not included in the
lease receipts
Lease of houses and buildings 70906534.63 0.00
Total 70906534.63 0.00
Financing lease as a lessor
Not applicable
Undiscounted lease receipts for each of the next five years
Not applicable
Reconciliation table of undiscounted lease receipts and net lease investment
Not applicable
(3) Recognize profit or loss on finance lease sales as a manufacturer or distributor
Not applicable
83. Data resources
Not applicable
150Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
84. Others
8. R&D expenditure
Unit: RMB
Item Amount for the current period Amount for the previous period
Employee remuneration 19756648.13 22913768.63
Sample and material costs 1285353.22 663576.68
Mold fees 318637.69 -4970.13
Depreciation and amortization 2382614.08 2243045.93
Technical cooperation fee 1469929.58 444619.97
Other 2312815.63 1901429.46
Total 27525998.33 28161470.54
Including: Expensed R&D
expenditures 27525998.33 28161470.54
Capitalized R&D expenditures 0.00 0.00
1. R&D projects eligible for capitalization
Not applicable
2. Important outsourcing projects under research
Not applicable
9. Changes in the scope of consolidation
1. Business combination not under common control
(1) Business combination not under common control occurred in the current period
Not applicable
(2) Combination costs and goodwill
Not applicable
(3) Identifiable assets and liabilities of the acquiree on the acquisition date
Not applicable
(4) Gains or losses arising from the re-measurement of equity held before the acquisition date at fair value
Whether there is a transaction that achieves the business combination step by step through multiple transactions and
obtains the control during the reporting period
No
151Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(5) Relevant explanations for the inability to reasonably determine the acquisition consideration or the fair
value of identifiable assets and liabilities of the acquiree at the acquisition date or the end of the reporting
period of combination.Not applicable
(6) Other notes
Not applicable
2. Business combination under common control
(1) Business combination under common control occurred in the current period
Not applicable
(2) Combination cost
Not applicable
(3) Book value of the combined party's assets and liabilities on the combination date
Not applicable
3. Reverse acquisition
Not applicable
4. Disposal of subsidiaries
Whether there is any transaction or event that results in the loss of control over the subsidiaries in the current period
No
Whether there is a situation where the investment in subsidiaries is disposed of through multiple transactions and the
control is lost in the current period
No
5. Changes in the scope of consolidation for other reasons
Not applicable
6. Others
Not applicable
152Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
10. Equity interests in other entities
1. Equity in subsidiaries
(1) Composition of the enterprise group
Unit: RMB
Main Percentage of
busine Registr Nature shares
Name of subsidiaries RegisteredCapital ss ation of
Method of
premis place business Direct Indire
acquisition
e ct
Shenzhen Harmony World Shenz Shenz Commer 100.00 Establishme
Watch Centre Co. Ltd. 600000000.00 hen hen ce % nt orinvestment
Establishme
FIYTA Sales Co. Ltd. 450000000.00 Shenz Shenz Commer 100.00hen hen ce % nt orinvestment
Shenzhen FIYTA Precision Shenz Shenz Manufac Establishme
Technology Co. Ltd. 180000000.00 hen hen turing 99.00% 1.00% nt orinvestment
Establishme
Shenzhen FIYTA STD Co. Ltd. 50000000.00 Shenz Shenz Manufac 100.00hen hen turing % nt orinvestment
Shenzhen Harmony World 10000000.00 Sanya Sanya Commer 100.00
Establishme
Watch Centre Co. Ltd. ce % nt orinvestment
Shenzhen Xunhang Precision Establishme
Technology Co. Ltd. 10000000.00
Shenz Shenz Manufac 100.00
hen hen turing % nt orinvestment
Emile Chouriet Horologe Establishme
(Shenzhen) Co. Ltd. 41355200.00
Shenz Shenz Commer 100.00
hen hen ce % nt orinvestment
Business
Liaoning Hengdarui Commerce Sheny Sheny Commer 100.00 combination
and Trade Co. Ltd. 51000000.00 ang ang ce % undercommon
control
Establishme
Temporal (Shenzhen) Co. Ltd. 5000000.00 Shenz Shenz Commer 100.00hen hen ce % nt orinvestment
Shenzhen Harmony E- Establishme
commerce Co. Ltd. 10000000.00
Shenz Shenz Commer 100.00
hen hen ce % nt orinvestment
FIYTA (HONG KONG) LIMITED 137737520.00 Hong Hong Commer 100.00
Establishme
Kong Kong ce % nt orinvestment
Business
Montres 97958426.10 Switze Switze Manufac 100.0
combination
Chouriet SA rland rland turing 0% not undercommon
control
Description of the shareholding ratio in the subsidiary that is different from the voting rights ratio:
Not applicable
153Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Basis for holding half or less of the voting rights but still controlling the investee and holding more than half of the
voting rights but not controlling the investee:
Not applicable
For important structured entities included in the scope of consolidation basis for control:
Not applicable
Basis for determining whether the company is an agent or a principal:
Not applicable
(2) Significant non-wholly-owned subsidiaries
Not applicable
(3) Main financial information of significant non-wholly-owned subsidiaries
Not applicable
(4) Major restrictions on the use of the assets of the enterprise group and the settlement of the debts of the
enterprise group
Not applicable
(5) Financial support or other support provided to structured entities included in the scope of consolidated
financial statements
Not applicable
2. Transactions of changes in the share of Owners' equity in subsidiaries and still control the
subsidiaries
(1) Description of changes in the share of Owners' equity in subsidiaries
Not applicable
(2) Impact of the transaction on minority equity and equity attributable to shareholders
Not applicable
3. Equity in joint venture arrangements or associates
(1) Important joint ventures or associated enterprises
Percentage of shares Accounting
Name of joint
venture or Main
treatment of
Registration Nature of investments in
associated businesspremise place business Direct Indirect joint venturesenterprise or associated
enterprise
154Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Shanghai Watch
Industry Co. Ltd. Shanghai Shanghai Commerce 25.00% Equity method
Description of the different shareholding scales of joint ventures or associated enterprises from the voting scale:
Not applicable
Basis for holding less than 20% of voting rights but having significant influence or holding 20% or more of voting rights
but not having significant influence:
Not applicable
(2) Main financial information of important joint ventures
Not applicable
(3) Main financial information of important associated enterprise
Unit: RMB
Ending balance/amount incurred in Beginning balance/amount incurred
the current period in the previous period
Current assets 185298448.35 165796119.65
Non-current assets 13596917.44 16753785.07
Total assets 198895365.79 182549904.72
Current liabilities 76767544.41 60781571.60
Non-current liabilities
Total liabilities 76767544.41 60781571.60
Minority interests
Equity attributable to shareholders of
the parent company 122127821.38 121768333.12
Share of net assets calculated by
shareholding scale 30531955.34 30442083.28
Adjustment matters 21420524.02 21420524.02
- Goodwill 21420524.02 21420524.02
- Unrealized profits from internal
transactions
- Others
Book value of equity investment in
associated enterprise 51952479.36 51862607.30
Fair value of equity investments in
associated enterprises at publicly
quoted prices
Operating revenue 58283918.10 63610760.47
Net profit 359488.26 -6789926.61
Net profits from discontinued
operations
Other comprehensive income
Total comprehensive income 359488.26 -6789926.61
Dividends received from associated
155Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
enterprise in the current year
(4) Summary financial information of insignificant joint ventures and associated enterprise
Not applicable
(5) Explanation on significant restrictions on the ability of joint ventures or associated
enterprises to transfer funds to the Company
Not applicable
(6) Excess losses incurred by joint ventures or associated enterprise
Not applicable
(7) Unrecognized commitments related to investment in joint ventures
Not applicable
(8) Contingent liabilities related to investments in joint ventures or associated enterprise
Not applicable
4. Important joint operation
Not applicable
5. Equity in structured entities not included in the scope of consolidated financial statements
Not applicable
6. Others
Not applicable
11. Government subsidies
1. Government subsidies recognized as receivable at the end of the reporting period
Not applicable
2. Liability items involving government subsidies
Unit: RMB
Accounting Opening Amount of Amount Amount Other Ending Related to
item balance new included in transferred changes in Balance assets/inco
subsidies in non- to other the current me
156Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
the current operating income in period
period income in the current
the current period
period
Deferred 952785.69 952785.69 Related toincome assets
3. Government subsidies included in the current period's profit and loss
Unit: RMB
Accounting item Amount for the current period Amount for the previous period
Other income 1414439.38 6691609.41
12. Risks related to financial instruments
1. Various risks arising from financial instruments
The Company's main financial instruments include cash equity investment borrowings accounts receivable accounts
payable etc. In daily activities it faces the risks of various financial instruments mainly including credit risk liquidity
risk and market risk. The risks associated with these financial instruments and the risk management policies adopted
by the Company to mitigate these risks are as follows:
The Board of Directors is responsible for planning and establishing the risk management framework of the Company
formulating the risk management policies and relevant guidelines of the Company and supervising the implementation
of risk management measures. The Company has formulated risk management policies to identify and analyze the
risks faced by the Company. These risk management policies clearly stipulate specific risks and cover many aspects
such as market risk credit risk and liquidity risk management. The Company regularly assesses the changes in the
market environment and the Company's operating activities to decide whether to update the risk management policies
and systems. The Company's risk management is carried out by the Risk Management Committee in accordance with
the policies approved by the Board of Directors. The Risk Management Committee identifies evaluates and mitigates
relevant risks through close cooperation with other business departments of the Company. The internal Audit
Department of the Company conducts regular audits on risk management controls and procedures and reports the
audit results to the Audit Committee of the Company. The Company diversifies the risks of financial instruments
through appropriate diversified investments and business combinations and reduces the risks of concentration in a
single industry a specific region or a specific counter party by formulating corresponding risk management policies.
1. Credit risk
Credit risk refers to the risk of financial loss to the company resulting from a counter party's failure to fulfill contractual
obligations. Management has established appropriate credit policies and continuously monitors the exposure to credit
risk.The Company has adopted a policy of only dealing with creditworthy counter parties. In addition the Company
assesses customers' creditworthiness based on their financial condition the possibility of obtaining guarantees from
third parties credit history and other factors such as current market conditions and sets corresponding credit terms.The Company continuously monitors the balances and recovery of notes receivable and accounts receivable. For
customers with poor credit history the company uses measures such as written reminders shortening credit terms or
canceling credit terms to ensure that the company does not face significant credit losses. In addition the Company
reviews the recovery of financial assets on each date of Balance Sheet to ensure that the relevant financial assets
have been fully provisioned for expected credit losses.
157Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
The Company's other financial assets include cash accounts receivable and other receivables. The credit risk of
these financial assets arises from counter party default with the maximum credit risk exposure being the carrying
amount of each financial asset as stated on the balance sheet. The Company has not provided any other guarantees
that may expose the Company to credit risks.The Company's cash is primarily deposited with state-controlled banks and other large and medium-sized commercial
banks. Management believes that these commercial banks have high creditworthiness and sound financial conditions
posing no significant credit risk and are not expected to incur any substantial losses due to counter party default. The
Company's policy is to control the amount of deposits held with various reputable financial institutions based on their
market reputation operating scale and financial background in order to limit the credit risk exposure to any single
financial institution.As part of the management of the Company's credit risk assets the Company uses aging to assess the impairment
loss of accounts receivable and other receivables. The Company's accounts receivable and other receivables involve
a large number of customers. The aging information can reflect these customers' ability to pay accounts receivable
and other receivables as well as the risk of bad debts. The Company calculates the historical actual bad debt rate for
different aging periods based on historical data and adjusts it considering forward-looking information such as
forecasts of current and future economic conditions including national GDP growth and national monetary policy to
derive the expected loss rate. For long-term receivables the Company makes a reasonable assessment of the
expected credit loss after comprehensively considering the settlement period the payment period agreed in the
contract the debtor's financial situation and the economic dynamics of the debtor's industry and considering the
above-mentioned forward-looking information.As of June 30 2024 the book balance and expected credit loss of related assets are as follows:
Item Book balance Impairment provision
Notes receivable 16654813.30 316420.99
Accounts receivable 387392159.53 31908693.72
Other receivables 63646417.76 4209877.23
Total 467693390.59 36434991.94
Due to the Company having a wide range of customers there is no significant concentration of credit risk.As of June 30 2024 the accounts receivable of the Company's top five customers accounted for 21.01% (in 2023:
21.42%) of the Company's total accounts receivable.
2. Liquidity risk
Liquidity risk refers to the risk of shortage of funds when the Company fulfills its obligations to settle by delivering cash
or other financial assets. The member companies subordinate to the Company are responsible for their own cash flow
forecasts. The company continuously monitors the short-term and long-term funding needs at the corporate level
based on the cash flow forecasts of its member enterprises to ensure adequate cash reserves. Additionally it
continuously monitors compliance with loan agreements and secures commitments from major financial institutions to
provide sufficient standby funds to meet short-term and long-term funding needs. In addition the Company entered
into financing line credit agreements with major business banks to provide support for the Company to perform its
obligations related to commercial paper. As of June 30 2024 the company has bank credit lines provided by a
number of domestic banks amounting to RMB2348784900 of which: the used credit amount is RMB458784900.As of June 30 2024 the Company's financial liabilities and off-balance sheet guarantee items are presented in
terms of undiscounted contractual cash flows according to the remaining term of the contract as follows:
Ending balance (RMB10000)
Item
Within 1 year 1-2 years 2-3 years More than 3years Total
Short-term loans 32020.73 32020.73
158Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Accounts payable 13137.23 13137.23
Other payables 11079.31 11079.31
Total 56237.27 - - - 56237.27
3. Market risk
1) Exchange rate risk
Except that the subsidiary established in Hong Kong holds assets with HKD as the settlement currency and the sub-
subsidiary established in Switzerland holds assets with CHF as the settlement currency other main business activities
of the Company are mainly settled with RMB. However the Company's recognized foreign currency assets and
liabilities and future foreign currency transactions (foreign currency assets liabilities and foreign currency transactions
are mainly denominated with HKD and CHF) still have exchange rate risks.As of June 30 2024 the amounts of foreign currency financial assets and foreign currency financial liabilities held
by the Company converted into RMB are listed as follows:
Ending Balance
Item
HKD items USD items Euro items CHF items Total
Foreign currency
financial assets:
Cash and bank
balances 1525680.59 1951640.49 1392782.33 1954301.48 6824404.89
Accounts receivable 3094077.56 2900119.70 - 187676.97 6181874.23
Other receivables 701907.34 87841.60 789748.94
Sub-total 5321665.49 4851760.19 1392782.33 2229820.05 13796028.05
Foreign currency
financial liabilities:
Accounts payable 688730.30 7262.21 117164.73 813157.24
Other payables 230588.13 66557.92 330359.20 627505.26
Sub-total 919318.43 73820.13 - 447523.93 1440662.50
Sensitivity analysis:
As of June 30 2024 for the Company's various foreign currency financial assets and foreign currency financial
liabilities if the RMB appreciates or depreciates by 5% against foreign currencies and other factors remain unchanged
the Company will reduce or increase the net profit by about RMB617700 (about RMB129500 in 2023).
2) Interest rate risk
The Company's interest rate risk mainly arises from bank borrowings. Financial liabilities with floating interest
rates expose the Company to cash flow interest rate risk and financial liabilities with fixed interest rate expose the
Company to fair value interest rate risk. The Company determines the relative scale of fixed-rate and floating-rate
contracts according to the market environment at that time.The Company's Financial Department continuously monitors company's interest rate level. An increase in interest
rates will raise the cost of new interest-bearing debt and the interest expenses on the company's existing floating-rate
debt significantly adversely affecting the company's financial performance. Management will make timely adjustments
based on the latest market conditions to mitigate interest rate risk.Sensitivity analysis:
As of June 30 2024 if the borrowing interest rate calculated at the floating interest rate increases or decreases by
50 basis points while other factors remain unchanged the Company's net profit will decrease or increase by about
RMB800000 (about RMB307300 in 2023).The sensitivity analysis above assumes that interest rate changes have occurred on the date of Balance Sheet
and have been applied to all loans obtained by the Company at floating interest rates.
159Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
2. Hedging
(1) The company carries out hedging business for risk management
Not applicable
(2) The company carries out eligible hedge business and applies hedge accounting
Not applicable
(3) The company carries out hedging business for risk management and is expected to achieve the risk
management objectives but has not applied hedge accounting
Not applicable
3. Financial assets
(1) Classification of transfer methods
Unit: RMB
Nature of transferred Amount ofTransfer methods financial assets transferred financial Derecognition
Determination basis
assets of derecognition
Banks with high
Discount and creditworthiness
endorsement Bank acceptance bill 24056305.26 Derecognized undertake bills ofexchange with
minimal credit risk
Total 24056305.26
(2) Financial assets derecognized due to transfer
Unit: RMB
Item Way of transfer of financial Amount of financial assets Gains or losses related toassets derecognized derecognition
Bank acceptance bill Discount and endorsement 24056305.26 0.00
Total 24056305.26 0.00
(3) Assets transfer financial assets that continue to be involved
Not applicable
13. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
Not applicable
160Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
2. Basis for determining the market price of items measured at fair value of the first level on a
continuous and non-continuous basis
Not applicable
3. Qualitative and quantitative information on valuation techniques and important parameters
adopted for continuous and non-continuous Level 2 fair value measurement items
Not applicable
4. Qualitative and quantitative information on valuation techniques and important parameters
adopted for continuous and non-continuous Level 3 fair value measurement items
Not applicable
5. Sensitivity analysis of adjustment information and non-observable parameters between
opening and closing book value of continuous third-level fair value measurement items
Not applicable
6. For items measured at fair value on a going concern if there is any transfer between
different levels in the current period the reason for the transfer and the policy for determining
the transfer time
Not applicable
7. Changes in valuation techniques in the current period and the reasons for the changes
Not applicable
8. Fair value of financial assets and financial liabilities not measured at fair value
Not applicable
9. Others
Not applicable
14. Related parties and related transactions
1. Parent company information
Shareholding Voting rights
Parent company name Registrati Nature of Registered scale of the scale of theon place business Capital parent company parent company
in the Company in the Company
AVIC International Shenzhen Commercial RMB11661620Holding Co. Ltd. services 00.00 40.16% 40.16%
161Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Description of the parent company
AVIC International Holdings Limited is a 100.00% indirectly owned subsidiary of AVIC International Holding
Corporation Aviation Industry Corporation of China LTD. holds 100.00% equity of AVIC International Holding
Corporation
The ultimate controller of the enterprise is Aviation Industry Corporation of China LTD.
2. Subsidiaries of the Company
For details of the subsidiaries of the Company please refer to Note X.1.
3. Joint ventures and associates of the Company
See Note X.3 for details of the important joint ventures or associates of the enterprise.
4. Other related parties
Names of other related parties Relationship between other relatedparties and the enterprise
AVIC Property Management Co. Ltd. (AVIC Property) Associated enterprise of the actualcontroller
Rainbow Digital Commercial Co. Ltd. (Rainbow) Controlled by the same party
Shennan Circuits Co. Ltd. (SCC) Controlled by the same party
AVIC East China Optoelectronics (Shanghai) Co. Ltd. (East China
Optoelectronics (Shanghai)) Controlled by the same party
AVIC Xi'an Flight Automatic Control Research Institute (AVIC Xi'an Flight
Automatic Control Research Institute) Controlled by the same party
Shenzhen Grand Skylight Hotel Management Co. Ltd. (Grand Skylight
Hotel Management) Controlled by the same party
AVIC Securities Co. Ltd. (AVIC Securities Company) Controlled by the same party
Shenzhen AVIC Group Training Center (AVIC Training Center) Controlled by the same party
AVIC Finance Co. Ltd. (AVIC Finance Company) Controlled by the same party
Gongqingcheng AVIC Cultural Investment Co. Ltd.(Gongqingcheng AVIC
Cultural Investment) Controlled by the same party
AVIC Jonhon Optronic Technology Co. Ltd. (AVIC JONHON) Controlled by the same party
AVIC International Holdings (Zhuhai) Co. Ltd. (AVIC INTL (Zhuhai)) Controlled by the same party
Guizhou Huayang Electronics Co. Ltd. (Guizhou Huayang Electronics) Controlled by the same party
Zhuhai Pilot Composite Material Technology Co. Ltd. (Zhuhai
PilotTechnology) Controlled by the same party
Guangdong International Mansion Industrial Co. Ltd.(Guangdong
International Mansion) Controlled by the same party
Shenzhen AVIC Technical Testing Institute Co. Ltd. (Shenzhen AVIC
Technical Testing Institute) Controlled by the same party
Shenyang Xinghua AVIC Electrical Appliance Co. Ltd. (Shenyang
Xinghua) Controlled by the same party
Shenzhen AVIC Changtai Investment Development Co. Ltd. (AVIC
Changtai) Controlled by the same party
AVIC Futures Co. Ltd. (AVIC Futures) Controlled by the same party
Anhui AVIC Display Technology Co. Ltd. (Anhui AVIC) Controlled by the same party
Shenzhen Aero-Fasteners MFG Co. Ltd. (SHBC) Controlled by the same party
Castic-SMP Machinery Corp.Ltd. (CSM) Controlled by the same party
Shijiazhuang Aircraft Industry Co. Ltd. (Shijiazhuang Aircraft Industry) Controlled by the same party
Sichuan Aviation Industry Chuanxi Machinery Co. Ltd. (Sichuan Chuanxi
Machinery) Controlled by the same party
AVIC International Holding Corporation (AVIC INTL) Controlled by the same party
162Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Company Director Manager Chief Financial Officer and Secretary of the
Board of Directors (key management personnel) Key management personnel
5. Related party transactions
(1) Related transactions for the purchase and sale of commodities the provision and receipt
of services
Purchase of goods/receipt of labor services
Unit: RMB
Content of related Amount for Whether theRelated party party transaction the current
Approved
transaction limit transaction limit is
Amount for the
period exceeded previous period
Water and
AVIC Property electricity andproperty 5642393.30 No 5600171.42
management fees
Rainbow Digital Shopping mall
Commercial Co. expenses/commodi 9301602.91 No 1939136.26
Ltd. ty purchase
China Aviation City
Real Estate Shopping mall 33486.54 No 32726.23
(Kunshan) Co. Ltd. expenses
Jiufang Commercial
Management Co. Shopping mall
65000000.00
expenses 64792.60 No 45347.58Ltd.AVIC Nanguang Elevator
Office maintenance 12286.27 No 18000.00premium
AVIC Louyu Office Fire fightingmaintenance fee 4740.00 No
Gongqingcheng
AVIC Cultural Shopping mall 8478.92 No
Investment Co. Ltd. expenses
Sales of goods/rendering of services
Unit: RMB
Related party Content of related party Amount for the current Amount for the previoustransaction period period
Rainbow Digital
Commercial Co. Ltd. Products and services 24031549.70 30348264.13
SCC Sales of materials andrendering of services 460.80
Gongqingcheng AVIC
Cultural Investment Co. Product sales 175983.10 154635.87
Ltd.AVIC JONHON Product sales 1865.30 406907.87
AVIC INTL Product sales 2824.77
East China Optoelectronics
(Shanghai) Product sales 10619.47
Guizhou Huayang
Electronics Product sales 5309.73
Zhuhai PilotTechnology Product sales 75711.51
Shenyang Xinghua Product sales 739635.19 145831.01
163Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Shijiazhuang Aircraft
Industry Product sales 234915.96
Sichuan Chuanxi
Machinery Product sales 70796.46
(2) Associated trusteeship/contracting and commissioned management/outsourcing situation
Not applicable
(3) Related leasing
As the lessor:
Unit: RMB
Name of lessee Type of leased assets Lease income recognized Lease income recognizedin the current period in the previous period
AVIC Property Premises 2477133.06 2677492.91
AVIC Securities Company Premises 705942.84 705942.84
Rainbow Digital
Commercial Co. Ltd. Premises 274857.12 309104.34
AVIC Futures Premises 44700.47
The Company as the lessee:
Unit: RMB
Simplified
processing of Variable lease
rental fees for payments not Interest expense
short-term leases included in the Rent paid on assumed Increase in right-
and leases of measurement of lease liabilities of-use assets
Name Type low-value assets
lease liabilities (if
of (if applicable) applicable)of
lessor leasedassets Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun
t for t for
Amoun
t for t for t for t for t for t for t for t for
the the the the the the
current previo
the the
current previo current previo
the
current previo
the
current previo
period us us us us usperiod period period period period period period period period
China
Aviatio
n City
Real
Estate Premis 67714 71100
--
(Kunsh es .26 .00
791.99580.086676566767.72.11
an)
Co.Ltd.Jiufang
Comm
ercial
Manag Premis 455.75 41544 19752 13640 6947. 4179. 14590
ement es .03 2.76 6.96 61 58 7.09
Co.Ltd.Rainbo Premis 78102 21827 1463. 6473. - -
164Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
w es .84 1.00 37 23 75092 19589
Digital .94 8.05
Comm
ercial
Co.Ltd.
(4) Related guarantees
Not applicable
(5) Loans from and to related parties
Not applicable
(6) Assets transfer and debt restructuring of related parties
Not applicable
(7) Remuneration of key management personnel
Not applicable
(8) Other related party transactions
As at the end of the current year the balance of deposits placed by the Company in AVIC Finance amounted to
RMB380786934.73 of which the deposit interest received in the current year amounted to RMB210559.83.
6. Receivables from and payable to related parties
(1) Receivable items
Unit: RMB
Ending Balance Opening balance
Item Related party
Book balance Bad debt Book balance Bad debtprovision provision
Cash in
bank
AVIC Finance 380786934.73 467743798.76
Accounts
receivable
Rainbow Digital
Commercial Co. Ltd. 2490562.71 115297.65 5973322.25 248095.43
AVIC JONHON 162478.08 7311.51 202712.86 12162.77
Gongqingcheng AVIC
Cultural Investment 56510.95 2825.55 22684.75 832.29
Co. Ltd.Shenyang Xinghua 848596.59 38186.85 292370.58 17542.23
AVIC Property 245170.39 12258.52 183123.05 9156.15
Guizhou Huayang 21260.00 1275.60
165Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Electronics
Anhui AVIC 15800.00 790.00
AVIC Securities
Company 247080.00 12354.00
Sichuan Chuanxi
Machinery 40000.00 1800.00
Notes
receivable
Zhuhai
PilotTechnology 892185.99 44609.30
Shenyang Xinghua 194183.16 192339.42
Other
receivables
Rainbow Digital
Commercial Co. Ltd. 855943.00 42797.15 834903.00 43170.15
Gongqingcheng AVIC
Cultural Investment 6500.00 325.00 6500.00 325.00
Co. Ltd.AVIC Property 133990.00 6699.50 143990.00 7199.50
(2) Payable items
Unit: RMB
Item Related party Book balance at period end Beginning book balance
Accounts payable
AVIC Property 32992.35
AVIC JONHON 391.96
Other payables
AVIC Property 1058235.04 1023487.21
AVIC Securities Company 247080.00 247080.00
AVIC Louyu Office 14808.41
Rainbow Digital
Commercial Co. Ltd. 96200.00 1935611.93
AVIC Changtai 4064.81
AVIC Nanguang Office 23943.22
Prepayments
AVIC Securities Company 123540.00
AVIC Futures 9435.48
AVIC INTL 7640.00
7. Commitments of related parties
Not applicable
8. Others
Not applicable
15. Share-based payment
1. Overall situation of share-based payment
Unit: RMB
166Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Category Grant in the current Exercise in the current Unlocked in the current Invalid in the current
of grant period period period period
object Quantity Amount Quantity Amount Quantity Amount Quantity Amount
2. Equity-settled share-based payment
Unit: RMB
Determination method for the fair value of equity Closing price of the company's shares on the date of
instruments on the grant date grant
Important parameters for the fair value of equity Employee service period achievement rate of
instruments on the grant date performance indicator and employee personalperformance evaluation results
For equity-settled share-based payments exchanged for
employee services that can only be exercised after the
completion of the vesting period or upon meeting
specified performance conditions at each balance sheet
date during the vesting period the company should
account for the fair value of the equity instruments
granted on the grant date based on the best estimate of
Determination basis for the number of exercisable equity the number of equity instruments expected to vest by
instruments including the cost of the services received for the period
in the relevant costs or expenses and capital reserves. At
the Balance Sheet Date if subsequent information
indicates that the number of equity instruments expected
to vest differs from previous estimates adjustments
should be made. The number of equity instruments
should be adjusted to the actual number vested on the
vesting date.Reasons for significant differences between the estimates
in the current period and those in the previous period None
Cumulative amount of equity-settled share-based
payment included in capital reserves 28815350.76
Total expenses recognized in the equity-settled share-
based payment in the current period 906067.21
3. Cash-settled share-based payment
Not applicable
4. Share-based payment expenses in the current period
Unit: RMB
Category of grant object Equity-settled share-based payment Cash-settled share-based paymentexpenses expenses
Some Directors Supervisors Senior
Executives and core backbones of 906067.21
the company
Total 906067.21
167Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
5. Modification and termination of share-based payment
Not applicable
6. Others
Not applicable
16. Commitments and contingencies
1. Important commitments
Significant commitments existing on the Balance Sheet Date
1. Signed lease contracts being performed or to be performed and their financial impact
See Note VII. 82 for details
2. Significant contingencies existing on the Balance Sheet Date
There were no significant contingencies required to be disclosed.
2. Contingencies
(1). Significant contingencies existing on the Balance Sheet Date
Not applicable
(2) If the company has no important contingencies required to be disclosed it shall also be
explained
There were no significant contingencies required to be disclosed.
3. Others
Segment information
The Company determines the operating segments based on the internal organizational structure management
requirements and internal reporting system. The Company's operating segment refers to the component that meets
the following conditions at the same time:
(1) The component can generate income and expenses in daily activities;
(2) The management is able to regularly evaluate the operating results of the component in order to determine the
allocation of resources to them and evaluate their performance;
(3) The financial position operating results cash flows and other relevant accounting information of the
component can be obtained.The Company determines report segments on the basis of operating segments and the operating segments that
meet one of the following conditions are recognized as report segments:
(1) The segment revenue of the operating segment accounts for 10% or more of the total revenue of all segments;
(2) The absolute amount of the segment's profit (loss) accounts for 10% or more of the greater of the total profit of
all profitable segments or the total loss of all loss-making segments.
168Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
The Company operates a single line of business primarily the production and sale of watches. Management
views and manages this business as a whole and evaluates its operating results accordingly. Therefore this financial
statement does not report segment information.As of June 30 2024 the Company had no other significant events that should be disclosed.
17. Events after the balance sheet date
1. Important non-adjusting matters
Not applicable
2. Profit distribution
Not applicable
3. Sales returns
Not applicable
4. Notes to other events after the Balance Sheet Date
18. Other significant events
1. Correction of accounting previous errors
(1) Retrospective restatement method
Not applicable
(2) Future applicable law
Not applicable
2. Debt restructuring
Not applicable
3. Assets replacement
(1) Exchange of non-monetary assets
Not applicable
(2) Replacement of other assets
Not applicable
169Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
4. Annuity plan
Not applicable
5. Discontinued operation
Not applicable
6. Segment information
(1) Determination basis and accounting policies for report segments
The Company determines the operating segments based on the internal organizational structure management
requirements and internal reporting system. The Company's operating segment refers to the component that meets
the following conditions at the same time:
(1) The component can generate income and expenses in daily activities;
(2) The management is able to regularly evaluate the operating results of the component in order to determine the
allocation of resources to them and evaluate their performance;
(3) The financial position operating results cash flows and other relevant accounting information of the
component can be obtained.The Company determines report segments on the basis of operating segments and the operating segments that
meet one of the following conditions are recognized as report segments:
(1) The segment revenue of the operating segment accounts for 10% or more of the total revenue of all segments;
(2) The absolute amount of the segment's profit (loss) accounts for 10% or more of the greater of the total profit of
all profitable segments or the total loss of all loss-making segments.The Company operates a single line of business primarily the production and sale of watches. Management
views and manages this business as a whole and evaluates its operating results accordingly. Therefore this financial
statement does not report segment information.
(2) Financial information of report segments
Not applicable
(3) If the company has no report segments or cannot disclose the total assets and total
liabilities of each report segment it shall explain the reasons
Not applicable
(4) Other notes
Not applicable
7. Other important transactions and events that affect the decision-making of investors
Not applicable
170Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
8. Others
Not applicable
19. Notes to the major items of the Parent Company's Financial Statements
1. Accounts receivable
1. Disclosure by aging
Unit: RMB
Aging Book balance at period end Beginning book balance
Within 1 year (including 1 year) 11424830.46 1875782.07
1-2 years 341772.29 23346.03
Total 11766602.75 1899128.10
(2). Disclosure under the methods of provision for bad debts by category
Unit: RMB
Ending Balance Opening balance
Categor Book balance Bad debt provision Book balance Bad debt provision
y Drawing Book Drawing Book
Amount Scale Amount percent value Amount Scale Amount percent value
ages ages
Account
s
receiva
ble with
provisio
n for
bad
debts
by
individu
al
In
which:
Account
s
receiva
ble with
provisio
n for 11766 100.00 590818 5.02% 11175 18991 100.00 76211. 4.01% 18229
bad 602.75 % .06 784.69 28.10 % 49 16.61
debts
by
combin
ation
In
which:
171Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Receiva
bles
from 11469 590818 10878 18981
other 482.48 97.47% .06 5.15% 664.42 59.02 99.95%
76211.4.02%182194947.53
custom
ers
Combin
ation of
related
parties
within 297120 297120
the .27 2.53% 0.00% .27 969.08 0.05% 0.00% 969.08
scope
of
consoli
dation
Total 11766 100.00 590818 5.02% 11175 18991 100.00 76211. 18229602.75 % .06 784.69 28.10 % 49 4.01% 16.61
Category name of provision for bad debts by combination: accounts receivable from other customers
Unit: RMB
Ending Balance
Name
Book balance Bad debt provision Drawing percentages
Receivables from other
customers 11469482.48 590818.06 5.15%
Total 11469482.48 590818.06
Description of the basis for determining the combination:
Not applicable
Name of provision for bad debts by combination: combination of related parties within the scope of consolidation
Unit: RMB
Ending Balance
Name
Book balance Bad debt provision Drawing percentages
Combination of related
parties within the scope of 297120.27
consolidation
Total 297120.27
Description of the basis for determining the combination:
Not applicable
If the provision for bad debts of accounts receivable is made according to the general expected credit loss model:
Not applicable
(3) Status of bad debt provision recovery or reversal for the period
Provision for bad debts in the current period:
Unit: RMB
Category Opening
Amount of change for the period Ending
balance Provision Recovered or Write-off Other Balance
172Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
transferred
Accounts
receivable with
provision for
expected credit
losses by
combination
Including:
combination of
other customers' 76211.49 539312.88 24706.31 590818.06
receivables
Total 76211.49 539312.88 24706.31 590818.06
Where accounts receivable with significant from provision for bad debts or recovered in the current period
Not applicable
(4). Situation of accounts receivable actually written off in the current period
Not applicable
(5) Accounts receivable and contractual assets collected from the debtors which rank the first
five at the end of period
Unit: RMB
Ending balance
Proportion in of provision for
Accounts Ending balance the total ending bad debts of
receivable Ending balance of of accounts balance of accountsCompany name balance at the contractual assets receivable and accounts receivable and
end of period contractual receivable and provision forassets contractual impairment of
assets contractual
assets
Summary of
accounts
receivable which
ranks the first 8284824.11 11766602.75 70.41% 414241.21
five at the end of
period
Total 8284824.11 11766602.75 70.41% 414241.21
2. Other receivables
Unit: RMB
Item Ending Balance Opening balance
Other receivables 646226304.77 696328419.85
Total 646226304.77 696328419.85
173Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(1) Interest receivable
1) Classification of interest receivable
Not applicable
2) Important overdue interest
Not applicable
3). Disclosure under the methods of provision for bad debts by category
Not applicable
4). Status of bad debt provision recovery or reversal for the period
Not applicable
5) Situation of interest receivable actually written off in the current period
Not applicable
(2) Dividends receivable
1) Classification of dividends receivable
Not applicable
2) Important dividends receivable with aging over 1 year
Not applicable
3). Disclosure under the methods of provision for bad debts by category
Not applicable
4). Status of bad debt provision recovery or reversal for the period
Not applicable
5) Situation of dividends receivable actually written off in the current period
Not applicable
174Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(3) Other receivables
1) Classification of other receivables by nature
Unit: RMB
Payment nature Book balance at period end Beginning book balance
Payments of related parties within
the scope of consolidation 645692800.05 696041965.52
Margin and deposits 129081.90 49581.90
Other 451421.29 278107.90
Total 646273303.24 696369655.32
2) Disclosure by aging
Unit: RMB
Aging Book balance at period end Beginning book balance
Within 1 year (including 1 year) 646224474.36 614472373.93
1-2 years 5615.00 81857231.39
2-3 years 3163.88
More than 3 years 40050.00 40050.00
3-4 years 40050.00 40050.00
Total 646273303.24 696369655.32
3). Disclosure under the methods of provision for bad debts by category
Unit: RMB
Ending Balance Opening balance
Categor Book balance Bad debt provision Book balance Bad debt provision
y Drawing Book Drawing Book
Amount Scale Amount percent value Amount Scale Amount percent value
ages ages
Account
s
receiva
ble with
provisio
n for
bad
debts
by
individu
al
In
which:
Provisio
n for
bad 646273 100.00 46998.
303.24%470.01%
646226696369100.0041235.696328
debts 304.77 655.32 % 47
0.01%419.85
on a
combin
175Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
ation
basis
In
which:
Combin
ation of
margin
and 129081 2496.8 126585 49581. 40526. 9055.3
deposit .90
0.02%71.93%.03900.01%6081.74%0
receiva
ble
Combin
ation of
receiva
bles of
related
parties 645692
within 800.05 99.91% 0.00%
645692696041696041
800.05965.5299.95%0.00%965.52
the
scope
of
consoli
dation
Combin
ation of
social
security 0.00% 263930 263930advanc .39 0.04% 0.00% .39
es
receiva
ble
Combin
ation of
other 451421 0.07% 44501. 406919 14177..29 60 9.86% .69 51 0.00% 708.87 5.00%
13468.
financin 64
gs
Total 646273 100.00 46998. 0.01% 646226 696369 100.00 41235. 0.01% 696328303.24 % 47 304.77 655.32 % 47 419.85
Number of categories with provision for bad debts by individual: 0
Number of categories with provision for bad debts by combination: 3
Category name of provision for bad debts by combination: combination of margin and deposit receivable
Unit: RMB
Ending Balance
Name
Book balance Bad debt provision Drawing percentages
Combination of margin and
deposit receivable 129081.90 2496.87 1.93%
Total 129081.90 2496.87
Description of the basis for determining the combination: payments of the same nature have similar credit risk
characteristics.Name of provision for bad debts by combination: combination of accounts receivable related parties within the scope
of consolidation
Unit: RMB
Name Ending Balance
176Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Book balance Bad debt provision Drawing percentages
Combination of receivables of
related parties within the scope 645692800.05
of consolidation
Total 645692800.05
Description of the basis for determining the combination: payments of the same nature have similar credit risk
characteristics.Category name of provision for bad debts by combination: other accounts receivable
Unit: RMB
Ending Balance
Name
Book balance Bad debt provision Drawing percentages
Combination of other
financings 451421.29 44501.60 9.86%
Total 451421.29 44501.60
Description of the basis for determining the combination: payments of the same nature have similar credit risk
characteristics.Provision for bad debts made according to the general expected credit loss model:
Unit: RMB
Stage I Stage II Stage III
Expected credit loss
Bad debt provision Expected credit loss
Expected credit loss
in the next 12 throughout the
throughout the Total
months duration (no credit
duration (credit
impairment) impairment hasoccurred)
Balance as of Jan. 1
202441235.4741235.47
Balance on Jan. 1
2024 in the current
period
--Transfer to phase II
- Transfer to phase
III
- Reversal to phase II
- Reversal to phase I
Provision in the
current period 5763.00 5763.00
Reversal in the
current period
Write-off in the
current period
Write-off in the
current period
Other changes
Balance as of June 46998.47 46998.47
177Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
302024
The basis for the division of each stage and the ratio of provisions for bad debts
The phase I is the bad debt provision for other receivables within one year. The phase II is the bad debt provision for
accounts receivable over one year that have not been individually assessed. The phase III is the bad debt provision for
individually assessed accounts receivable.Changes in book balance with significant amount of loss provision in the current period
Not applicable
4). Status of bad debt provision recovery or reversal for the period
Provision for bad debts in the current period:
Unit: RMB
Amount of change for the period
Category Opening Endingbalance Provision Recovered or Write-off or Other Balancetransferred impairment
Provision for
bad debts on
a combination 41235.47 5763.00 46998.47
basis
Total 41235.47 5763.00 46998.47
Where the bad-debt provision amount recovered or reversed this period is important:
Not applicable
5) Situation of other accounts receivable actually written off in the current period
Not applicable
6). Other receivables collected from the debtors which rank the first five at the end of period
Unit: RMB
Proportion in the End-of-period
Company name Payment nature Ending Balance Aging total ending balance ofbalance of other provision for bad
receivables debt
Summary of
other accounts Receivables of
receivable which related parties
rank the first five within the scope 645692800.05 Within 1 year 99.91% 0.00
at the end of of consolidation
period
Total 645692800.05 99.91% 0.00
7) Presented in other receivables due to centralized management of funds
Not applicable
178Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
3. Long-term equity investments
Unit: RMB
Ending Balance Opening balance
Impair Impai
Item
Book balance ment rmentprovis Book value Book balance provi Book value
ion sion
Investment in
subsidiaries 1581832322.16 1581832322.16 1581179108.81 1581179108.81
Investments in
associates
and joint 51952479.36 51952479.36 51862607.30 51862607.30
ventures
Total 1633784801.52 1633784801.52 1633041716.11 1633041716.11
(1) Investment in subsidiaries
Unit: RMB
Beginning Increase or decrease in the current period End-of-
Beginning balance of Ending period
The balance provision Additional Reduction Provision balance
balance of
investee (book for provisioninvestmen of for (book
value) impairmen t investmen impairmen
Other
value) for
t t t accrued impairment
Shenzhen
Harmony
World 6092954 283653.8 6095791
Watch 90.83 3 44.66
Centre
Co. Ltd.Shenzhen
Harmony
E- 1168448 1168448
commerce 4.39 4.39
Co. Ltd.Shenzhen
FIYTA
Precision 1820444 123186.5 1821676
Technolog 61.20 2 47.72
y Co. Ltd.Shenzhen
FIYTA 5106289
STD Co. 1.67 48625.00
5111151
6.67
Ltd.FIYTA
(HONG 1377375 1377375
KONG) 20.00 20.00
LIMITED
Temporal
(Shenzhe 5000000. 5000000.n) Co. 00 00
Ltd.
179Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
FIYTA
Sales Co. 4569924 137775.9 4571302
Ltd. 56.17 0 32.07
Liaoning
Hengdarui
Commerc 3686784 3686784
e and 3.96 3.96
Trade Co.Ltd.Emile
Chouriet
Horologe 8049396
(Shenzhe 0.59 59972.10
8055393
2.69
n) Co.Ltd.Shenzhen
Harmony
World 1000000 1000000
Watch 0.00 0.00
Centre
Co. Ltd.Total 1581179 653213.3 1581832108.81 5 322.16
(2). Investments in associates and joint ventures
Unit: RMB
Increase or decrease in the current period
Invest
Begin End-ment
Begin ning incom Other
Cash
divide Endin
of-
Invest ning balan
compr Provis g period
Additi Reduc e or nds or
ment balan ce of loss
ehens Other profits ion for balan
balan
ce provisi onal tion of ive chang ce ofunit invest invest recog incom es in declar
impair
ment Other
ce
(book on for provisinized (book
value) impair ment ment under e equity
ed to
be accru value)
on for
ment impairequity adjust ed
metho ments
distrib ment
uted
d
1. Joint ventures
2. Associated enterprise
Shang
hai
Watch 5186
Indust 2607. 8987
5195
ry 30 2.06
2479.
36
Co.Ltd.Sub- 5186 5195
total 2607.
8987
302.06
2479.
36
51865195
Total 2607. 8987
302.06
2479.
36
The recoverable amount is determined by the net amount of the fair value less the disposal expenses
180Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Not applicable
The recoverable amount is determined at the present value of the expected future cash flows
Not applicable
Reasons for the difference between the aforementioned information and the information used in the impairment test of
previous years or external information
Not applicable
Reasons for the difference between the information used in the company's impairment test in previous years and the
actual situation in the current year
Not applicable
(3) Other notes
Not applicable
4. Operating income and operating costs
Unit: RMB
Amount for the current period Amount for the previous period
Item
Revenue Cost Revenue Cost
Main business 93442375.61 28763610.04 90155946.21 22121058.14
Other businesses 2209518.25 1886928.93
Total 95651893.86 28763610.04 92042875.14 22121058.14
5. Investment income
Unit: RMB
Item Amount for the current period Amount for the previous period
Long-term equity investment income
accounted for using the equity 89872.06 -1697481.65
method
Total 89872.06 -1697481.65
6. Others
Not applicable
20. Additional information
1. Breakdown of current non-recurring profit and loss
Unit: RMB
Item Amount Notes
Losses from disposal of non-current
assets 2906210.67
Government grants recognized in 1414439.38
current profit and loss (excluding
181Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
those closely related to the
Company's normal operations in
compliance with national policies
entitled in accordance with set
standards and having a sustained
impact on the Company's profit and
loss)
Reversal of provision for impairment
of receivables subject to individual 3302930.73
impairment testing
Other operating incomes and
expenses excluding the above items 1099305.50
Less: Income tax impact 2029625.75
Total 6693260.53 --
Specific circumstances of other items that meet the definition of non-recurring gains and losses:
Not applicable
Explanation of circumstances where items listed as non-recurring gains and losses in Explanatory Announcement No.
1 on Information Disclosure of Companies Issuing Securities Publicly - Non-recurring Gains and Losses are classified
as recurring
Not applicable
2. Return on equity and Earnings per share
Earnings per share
Profit during the reporting period Weighted averagereturn on equity Basic earnings per share Diluted earnings per share
(RMB/share) (RMB/share)
Net profit attributable to
common stock shareholders of 4.36% 0.3568 0.3564
the company
Net profit attributable to
common stock shareholders of
the company after deducting 4.16% 0.3405 0.3401
non-recurring gains and losses
3. Differences in accounting data under domestic and overseas accounting standards
(1). Differences in net profit and net assets in the financial reports disclosed in accordance
with international accounting standards and Chinese accounting standards
Not applicable
(2). Differences in net profit and net assets in the financial reports disclosed in accordance
with overseas accounting standards and Chinese accounting standards
Not applicable
182Full text of 2024 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(3) Explanation of the reasons for the differences in accounting data under domestic and
overseas accounting standards. If the data has been audited by an overseas audit institution
for difference adjustment the name of the overseas institution shall be indicated
4. Others
Not applicable
FIYTA Precision Technology Co. Ltd.Board of Directors
August 21 2024
183
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