FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
FIYTA Precision Technology Co. Ltd.2022 Semi-annual Report
August 20 2022
1FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Section 1 Important Notice Table of Contents and Definition
The Board of Directors the Supervisory Committee directors supervisors and senior executives hereby individually and
collectively accept responsibility for the correctness accuracy and completeness of the contents of this report and confirm
that there are neither material omissions nor errors which would render any statement misleading.Zhang Xuhua the Company leader Song Yaoming chief financial officer and Tian Hui the manager of the accounting
department (treasurer) hereby confirm the authenticity and completeness of the financial report enclosed in this
Semi-annual Report.All the directors attended the board meeting for reviewing the Semi-annual Report.Any perspective description such as future plan development strategy etc. involved in the Semi-Annual Report shall not
constitute the Company’s substantial commitment to the investors and the investors should please pay attention to their
investment risks.In this report the Company has described in detail the existing macro-economic risks as well as operation risks. Investors
are advised to refer to the contents concerning risks possibly to be confronted with by the Company and the
countermeasures to be taken in Section 3 Discussion and Analysis by the Management
The Company intends neither to distribute any cash dividend or bonus shares nor to convert any reserve into share capital.
2FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Table of Contents
Section 1 Important Notice Table of Contents and Definition
Section 2 Company Profile and Financial Highlights
Section 3 Discussion and Analysis by the Management
Section 4 Corporate Governance
Section 5 Environment and Social Responsibility
Section 6 Significant Events
Section 7 Change of the Shares and Particulars about Shareholders
Section 8 About the Preferred Shares
Section 9 About Bonds
Section 10 Financial Report
3FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Documents Available for Inspection
I. Financial statements signed by and under the seal of the legal representative the chief financial officer and the person in
charge of the accounting office.II. Originals of all documents and manuscripts of all the Company’s documents disclosed to the public on the media
designated by China Securities Regulatory Commission during the reporting period.III. Full text of 2022 Semi-annual Report carrying the signature of the legal representative.
4FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Definitions
Terms to be defined Refers to Definition
This Company the Company or FIYTA Refers to FIYTA Precision Technology Co. Ltd.AVIC Refers to Aviation Industry Corporation of China
AVIC International Refers to AVIC International Holding Corporation
AVIC IHL Refers to AVIC International Holding Limited
AVIC Finance Refers to AVIC Finance Co. Ltd.Restricted Stock Incentive Plan Phase I Refers to Restricted A-Share Incentive Plan 2018 (Phase I)
Restricted Stock Incentive Plan Phase II Refers to Restricted A-Share Incentive Plan 2018 (Phase II)
5FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Section 2 Company Profile and Financial Highlights
I. Company Profile
Short form of the stock: FIYTA and FIYTA B Stock Code 000026 and 200026
Stock short form before change None
Stock Exchange Listed with Shenzhen Stock Exchange
Company Name in Chinese FIYTA Precision Technology Co. Ltd.Abbreviation of Registered
FIYTA
Company Name in Chinese
Company name in English (if
FIYTA Precision Technology Co. Ltd.any)
Abbreviation of the Company
FIYTA
name in English (if any)
Legal Representative Zhang Xuhua
II. Liaison Persons and Communication Information
Secretary of the Board Securities Affairs Representative
Names Song Yaoming Xiong Yaojia
20th Floor FIYTA Technology Building Gaoxin 18th Floor FIYTA Technology Building Gaoxin
Liaison Address
S. Road One Nanshan District Shenzhen S. Road One Nanshan District Shenzhen
Tel. 0755-86013669 0755-86013669
Fax 0755-83348369 0755-83348369
Email investor@fiyta.com.cn investor@fiyta.com.cn
III. Other Information
1. Way of Communication
There is no change in the registered address office address and post code company website email during the reporting
period. For the detail refer to 2021 Annual Report.
2. Information Disclosure and Place where the Regular Reports are Prepared
There is no change in the newspapers designated for disclosing the information the Internet website designated by China
Securities Regulatory Commission for publishing the Semi-annual Report and the place where the Company’s
Semi-annual Report is prepared and available for inquiry. For the detail refer to 2021 Annual Report.
3. Other Relevant Information
Is there any change in any other relevant information during the reporting period
Inapplicable
6FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
IV. Summary of Accounting/Financial Data
Does the Company need to make retroactive adjustment or restatement of the accounting data of the previous years
No
Year-on-year increase/decrease
Reporting period Same period of the previous year
in the reporting period
Revenue in CNY 2183570749.11 2777519521.34 -21.38%
Net profit attributable to the
Company’s shareholders in 140692784.29 233544726.55 -39.76%
CNY
Net profit attributable to the
Company’s shareholders less 129931756.90 223796233.42 -41.94%
the non-recurring items in CNY
Net cash flows arising from
278386263.60205154563.9335.70%
operating activities in CNY
Basic earning per share
0.33510.5421-38.18%
(CNY/share)
Diluted earning per share
0.33510.5421-38.18%
(CNY/share)
Return on equity weighted
4.62%8.09%-3.47%
average
Increase/decrease at the end of
End of the reporting period End of the previous year the year over the end of the
previous year
Total assets (in CNY) 4162089367.18 4110579952.49 1.25%
Net profit attributable to the
Company’s shareholders in 2991763111.15 3013232642.53 -0.71%
CNY
V. Difference in the Accounting Data based respectively on the Chinese Accounting Standards (CAS) and
International Accounting Standards (IAS)
1. Differences in the net profit disclosed in the financial report & the net assets attributable to the Company’s
shareholders respectively according to the IAS and the CAS.Inapplicable
2. Differences in the net profit disclosed in the financial report & the net assets attributable to the Company’s
shareholders respectively according to the IAS and the CAS.Inapplicable
VI. Non-recurring gain/loss items and the amount involved
In CNY
Items Amount Notes
Gain/loss from disposal of non-current
-816021.16
assets including the part written-off with the
7FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
provision for impairment of assets.The government subsidies included in the
profits and losses of the current period
( (excluding government grants which are
13369782.95
closely related to the Company’s normal
business and conform with the national
standard amount or quantity)
Reversal of provision for impairment of
accounts receivable that has been separately 2130784.84
tested for impairment
Other non-operating income and expenses
-617309.48
with the aforesaid items exclusive
Less: Amount affected by the income tax 3306209.76
Total 10761027.39
Details of other gains and losses in compliance with the definition of non-recurring gains and losses.Inapplicable
Explanation of the non-recurring gains and losses listed in the Explanatory Announcement No.1 on Information Disclosure
for Companies Offering Their Securities to the Public as recurring gains and losses
Inapplicable
8FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Section 3 Discussion and Analysis by the Management
I. Main business the Company operated during the reporting period
(I) Main business the Company operated during the reporting period
The Company bases its establishment and development on the aviation precision technology and material technology.Over the years the Company has been adhering to the values of “the leading role of brand customer orientation valuecreation cooperation and responsibility learning and innovation" taking “inheriting of the spirit of aeronautical patriotismand creating a quality life” as its mission adhering to the brand strategy and innovation drive focusing on the watch
industry has formed a core business with integration of watch research and development design manufacturing sales
and services.Since its establishment the Company has been deep plowed professional watch-making capability construction and brand
operation has successfully built the "FIYTA" brand and established the brand a leading position in the domestic industry by
virtue of the advantages in technology and quality. Relying on its precision and advanced technology the "FIYTA" Brand
has provided professional timekeeping watches for China's aerospace industry for many times. Since 2003 the Company
has successively fulfilled the tasks of developing aerospace watches for “Shenzhou V” to “Shenzhou XIV”. FIYTA has
become one of the three major aerospace watch brands in the world.Since 1997 in order to seize the opportunities in the domestic famous watch market and accelerate the breakthrough of
China’s own brands the Company has expanded the retail business of "HARMONY" World Watches refined the
industry-leading operational management and customer service capabilities and continued to devote itself to building a
high-end chain commercial brand specialized in the sales and services of famous watches.In recent years the Company has relied on high-end precision manufacturing technology and industrial accumulationbased on the development principle of “technology being homologous the industry being same-rooted and value beingco-directional” and extended the development of precision technology business and smart wears business. At present
these two businesses have begun to take shape.(II)Development of the Industry the Company is Engaged in during the Reporting Period
The watch industry the Company is engaged in has a long history and profound cultural precipitation and is one of the
representative industries of high-precision manufacturing. The domestic watch industry closely follows the nationalindustrial modernization progress and is flourishing with the pragmatic spirit and self-improvement culture of “Made inChina". Recently five national administrative departments of China jointly issued the "Guiding Opinions on the
Development of Light Industry" which put forward specific requirements for scientific and technological innovation brand
promotion and other aspects of light industry including the watch industry to promote the continued high-quality
development of the industry.Watches have multiple attributes of functions and art. With the arrival of the era of personalized consumption it is no longer
limited to the function of timekeeping but integrates various needs of the new consumption era such as emotional value
and aesthetic experience and is gradually becoming the symbolic presentation of quality life consumers are pursuing. In
recent years with the improvement of national purchasing power the change of consumption concept and the guidance of
consumption policies the powerful domestic consumption demand is driving the continuous expansion of the domestic
9FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
watch consumption market. The consumption of mid-to-high-end watches represented by the Swiss watch brands has
shown a positive growth momentum. Since 2016 the amount of Swiss watch exports to mainland China has grown steadily
for six consecutive years and the market share of mainland China has jumped to the forefront of the world. The mid-end
and fashion watch consumer market where domestic watch brands are located is confronted with many challenges such as
the national consumption structure and the upgrading of consumer demand and gradually seeks to transform and upgrade
to quality and personalization. With the rise of "national tide culture" domestic watch brands have ushered in new
development opportunities and market space.At the same time the domestic watch industry has experienced profound changes with the process of industrial
digitalization. The innovation of digital technology has boosted the continuous improvement of the overall efficiency of the
industrial chain with increasingly rich varieties improved quality and continuous emergence of brands to meet the
continuously upgraded consumer demand. In the future digital concepts and digital technologies shall be further integrated
into R&D design manufacturing sales service and other links bringing us new opportunities and challenges.In general the continuous improvement of China's manufacturing level the increasingly segmented and diversified
consumer demands have brought broad development prospects to the industry we are engaged in and digital
transformation and upgrading have brought huge potential for improving the efficiency of the industrial chain. Facing the
future the competitive advantage centered on "brand power product power channel power" and "digitalization" shall be
always our confidence.II. Analysis on Core Competitiveness
(I) Adhering to Brand Leadership and Having Accumulated Rich Experience in Brand Management
The brand positioning of "FIYTA" is "a high-quality Chinese watch brand with aerospace watch as the feature". The
Company has achieved a number of industry firsts in brand building marketing communication product design etc. and
has a solid foundation in brand operation. At the same time the Company enthusiastically promotes international
development. By leading and participating in the compilation of a number of international standards the Company has
entered the BASELWORLD etc. to strengthen exchanges and interactions with outstanding watch brands and the brand
force has been continuously improved.With the vision of "becoming the most outstanding comprehensive service provider of famous watches" the retail channel
of "HARMONY" World Watch maintains good cooperative relations with various group brands and independent brands by
virtue of its industry-leading operational management capability and customer service levels and the proportion of the
meddle and high end brands is continuously rising.(II) Construction of Deep Ploughed Channel and Creating Excellent Channel Management Ability
FIYTA persistently constructed the deeply ploughed channel and continuously provided a source of power for brand
development with high-quality services and refined operation capability. "FIYTA" Brand and "HARMONY" brand watch retail
channels have offline business outlets covering most regions of the country online business outlets covering mainstream
e-commerce platforms and at the same time focus on promoting the expansion of new media channels such as live
streaming and mini programs. The Company has always devoted itself to building the ability of outstanding channel
operation powerful team excellent services and providing customers with the best consumption experience in all aspects.The “Three-Level Marketing” “Perfect Sales” “Outstanding Operation” etc. have already been deposited as the core base
work logic of channel operation.
10FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
In recent years the Company has comprehensively promoted digital construction made a preliminary result in the digital
transformation and achieved full coverage of online and offline self-operated stores and shall provide customers with more
systematic professional services and create more value.(III) Building the Advantages of the Leading Core technology Based on Precision Technology
The Company has been devoting itself to the building of precision technology research and development capability has
successively built advanced R & D production technology and manufacturing technology platforms and has established R
& D and production bases in Shenzhen and Switzerland respectively; and has established professional watchmaking
capabilities including self-made driving units of watches and key components manufacturing space watch research and
development and high-end watchmaking techniques etc. and achieved continuous breakthroughs in research and
development and application of new materials new processes and new technologies. At present the Company has 2
national high-tech enterprises established a national enterprise technology center a national industrial design center and
is a national technological innovation demonstration enterprise.During the reporting period based on the continuous consolidation of core competitiveness the "FIYTA" brand won the
"Most Influential Brand of the Year" Award in the Guangdong-Hong Kong-Macao Greater Bay Area in 2022 and HARMONYwas awarded one of “the Top Ten Powers of Annual Increase in Wholesale and Retail Industry 2021 in Nanshan DistrictShenzhen"; the Science and Technology Development Company was elected "2021 Technologically Advanced Small and
Medium-sized Enterprises in Guangdong Province".III. Analysis on Principal Businesses
I. General
In the first half year of 2022 the global political and economic situation was turbulent and the situation of COVID-19
Epidemic in Beijing Shanghai Shenzhen and other places in China was repeated and the consumer market was relatively
sluggish under various pressures. With the changes in the domestic epidemic prevention and control situation the
year-on-year growth rate of total retail sales of consumer goods achieved positive year-on-year growth by June ending the
continuous negative year-on-year growth from March to May and the consumer market gradually recovered.Facing the severe market situation on the premise of continuing to strictly implement the COVID-19 Epidemic prevention
and control measures the Company adhered to the business strategy of "defensive counterattack" prevented risks such
as inventory and accounts receivable strictly controlled various costs and expenses and actively grasped various
operating countermeasures; as a result the operating performance was gradually improved under the continuous impact of
the COVID-19 since March; the monthly revenue in the second quarter continued to increase month-on-month and the
monthly revenue in June achieved a year-on-year positive growth. In the reporting period the Company realized revenue
amounting to CNY 2183.57 million with year-on-year growth of 21.38% and realized total profit amounting to CNY 178.33
million with a year-on-year drop of 40.97%.
(1) Promoting brand positioning upgrade systematically enhancing brand building and the influential force of
products
During the reporting period "FIYTA" continued to promote the upgrade of brand positioning established the positioning of
"high-quality Chinese watch brand with aerospace watches as its feature" and created a product collection matrix with "the
country as the core and trend as the form". Focusing on core collections such as "Aerospace" "Clover" "Heartouching" and
11FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
other core collections increased resource allocation and combined aerospace-related events and topics on new medium
channels a such as "Little Red Book" "Tik Tok" and "POIZON" the Company further carried out integrated marketing
activities and the sales of "Aerospace" collection increased by more than five times year-on-year which helped the brand's
average customer price to be significantly improved and the brand image to be rejuvenated.“HARMONY” continued to focus on the dimensions such as service level customer research customer value mining etc.to deepen plough of and refine operations. Customer satisfaction and stickiness were further improved. The total amount of
potential customer transactions and old customers' repurchase accounted for about 60%.
(2)Promoting high-quality development of channels and further optimizing channel structure
During the reporting period “FIYTA” continued to optimize the image of terminal stores launched the first
aerospace-themed store; promoted the entry of shopping malls and opened 12 new shopping mall shops."HARMONY" continued to promote the transformation and upgrading of existing channels and the expansion of
mid-to-high-end channels increasing the proportion of mid-to-high-end channels and opened 11 new shops in Shanghai
Chongqing Xi'an Wuhan Changsha and other places; continued to explore creative operation models such as setting up
high-end integrated shop TimeVallée; actively tried to carry out cross-border activities with automobiles securities banks
etc.
(3) Adhering to innovation-driving and accelerating digital transformation
During the reporting period "FIYTA" further promoted private domain operations completed full launch of the mini-program
cloud store project and continued to attract traffic to offline stores; relying on the CRM system “FIYTA” carried out
members & fans community project and the member recruitment and potential customer conversion continued to grow
steadily."HARMONY" continued to improve the special capability of digital marketing built and reserved an internal KOS (Key
Opinion Sales) team; enhanced digital marketing effort and effectively solved the impact upon offline physical store sales.
(4) Based on precision technology enhancing technical strength and expanding new markets and new customers
During the reporting period the Company continued to strengthen cooperation in the fields of optical communication and
lasers in its precision technology business strove to build a technical team that matched complex and high-precision
aerospace products improved the processing capabilities of high-precision products and tapped new customers in the
fields of aerospace and medical equipment. The Company achieved breakthrough in some key projects and the operating
revenue from the precision technology business in the first half of the year increased by more than 40% year-on-year. The
Company promoted the substantive operation in its smart wearable business and the revenue from self-operated
e-commerce channels increased steadily; the Company continued to implement software optimization to improve product
and technical capability.Year-on-year Movements of the Key Financial Items are summarized as follows:
In CNY
Year-on-ye
Same period of the ar
The reporting period Cause of the movement
previous year increase/de
crease
12FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Operating revenue 2183570749.11 2777519521.34 -21.38% Inapplicable
Operating cost 1373664560.41 1738149481.70 -20.97% Inapplicable
Sales costs 477806040.76 561630052.63 -14.93% Inapplicable
Administrative expenses 116715664.69 121391665.85 -3.85% Inapplicable
Mainly due to year-on-year decrease of the
Financial expenses 11877406.98 20777273.71 -42.83%
bank borrowings in the reporting period.Mainly due to year-on-year decrease of the
Income tax expenses 37639093.79 68549402.06 -45.09%
total profit in the reporting period.R&D input 25026713.85 26370064.68 -5.09% Inapplicable
Net cash flows arising Mainly due to year-on-year decrease of
278386263.60205154563.9335.70%
from operating activities inventory purchase in the reporting period.Mainly due to the purchase of office property
Net cash flow arising from
-53842038.20 -80118132.80 32.80% and endorsement fee incurred in the same
investment activities
period of the previous year.Net cash flow arising from Mainly due to year-on-year increase of the net
-41711043.76-242539992.1282.80%
financial activities borrowings in the reporting period.Mainly due to year-on-year decrease of
Net increase of cash and inventory purchases and year-on-year
183619193.41-118217129.02255.32%
cash equivalents increase the net borrowings in the reporting
period.Significant change in profit composition or profit sources during the reporting period.Inapplicable
Composition of Revenues
In CNY
The reporting period Same period of the previous year
Year-on-year
Proportion in the Proportion in the
Amount Amount increase/decrease
revenue revenue
Total operating
2183570749.11100%2777519521.34100%-21.38%
revenue
Based on sectors
Watches 2030451582.84 92.99% 2637347983.49 94.95% -23.01%
Precision technology
84809043.133.88%59305901.132.14%43.00%
business
Leases 61589877.27 2.82% 74149889.89 2.67% -16.94%
Others 6720245.87 0.31% 6715746.83 0.24% 0.07%
Based on products
Watch brand business 405700843.92 18.58% 541632277.89 19.50% -25.10%
Watch retail and
1624750738.9274.41%2095715705.6075.45%-22.47%
services
Precision technology
84809043.133.88%59305901.132.14%43.00%
business
Leases 61589877.27 2.82% 74149889.89 2.67% -16.94%
Others 6720245.87 0.31% 6715746.83 0.24% 0.07%
Based on regions
South China 1114400902.31 51.04% 1404978399.03 50.58% -20.68%
Northwest China 313541606.46 14.36% 414691758.15 14.93% -24.39%
Northeast China 109155218.86 5.00% 138241583.29 4.98% -21.04%
East China 277109098.62 12.69% 381212790.12 13.72% -27.31%
Northeast China 133516376.90 6.11% 158038232.08 5.69% -15.52%
Southwest China 235847545.96 10.80% 280356758.67 10.09% -15.88%
13FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Sector(s) Product(s) or Region(s) Taking over 10% of the Operating Revenue or Operating Profit
In CNY
Year-on-year
Year-on-year
increase/decr Year-on-year
increase/decr
ease of increase/decreas
Gross ease of
Turnover Operating cost operating e of gross profit
profit rate operating
revenue over rate over the
costs over the
the previous previous year
previous year
year
Based on sectors
Watches 2030451582.84 1282583901.36 36.83% -23.01% -23.14% 0.10%
Precision technology
84809043.1370928415.1116.37%43.00%40.94%1.22%
business
Leases 61589877.27 19661635.62 68.08% -16.94% 9.33% -7.67%
Others 6720245.87 490608.32 92.70% 0.07% -58.50% 10.30%
Based on products
Watch brand business 405700843.92 122383478.18 69.83% -25.10% -16.21% -3.20%
Watch retail and
1624750738.921160200423.1828.59%-22.47%-23.80%1.24%
services
Precision technology
84809043.1370928415.1116.37%43.00%40.94%1.22%
business
Leases 61589877.27 19661635.62 68.08% -16.94% 9.33% -7.67%
Others 6720245.87 490608.32 92.70% 0.07% -58.50% 10.30%
Based on regions
South China 1114400902.31 711321379.30 36.17% -20.68% -20.06% -0.49%
Northwest China 313541606.46 195320936.92 37.70% -24.39% -24.78% 0.32%
Northeast China 109155218.86 64552213.92 40.86% -21.04% -16.93% -2.93%
East China 277109098.62 171265181.74 38.20% -27.31% -28.68% 1.19%
Northeast China 133516376.90 87803726.24 34.24% -15.52% -15.26% -0.20%
Southwest China 235847545.96 143401122.29 39.20% -15.88% -14.22% -1.18%
While adjustment of the statistical caliber for the principal business data took place in the reporting period the principal
business data with the statistical caliber adjusted at the end of the reporting period in the latest year.Inapplicable
Causes of the change in the relevant data by over 30%
During the reporting period benefited from the market development and breakthroughs in key projects precision technology
business the Company achieved operating revenue increase by 43.00% year-on-year and operating costs increase by
40.94% year-on-year.
IV. Analysis on Non-Principal Businesses
Inapplicable
V. Analysis on Assets and Liabilities
1. Significant Changes in Assets Composition
In CNY
14FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
End of the reporting period End of the previous year Proportion Significant
Proportion in total Proportion in increase/de changes
Amount Amount
assets total assets crease Notes
Monetary fund 393873930.55 9.46% 210254737.14 5.11% 4.35% Inapplicable
Accounts
419635705.95 10.08% 388885601.28 9.46% 0.62% Inapplicable
receivable
Contract assets 0.00 0.00% 0.00 0.00% 0.00% Inapplicable
Inventories 1979996270.39 47.57% 2050148750.89 49.87% -2.30% Inapplicable
Investment-orient
375707647.63 9.03% 383425916.35 9.33% -0.30% Inapplicable
ed real estate
Long-term equity
57618231.83 1.38% 55155605.31 1.34% 0.04% Inapplicable
investment
Fixed assets 340122918.20 8.17% 349495316.65 8.50% -0.33% Inapplicable
Construction-in-p
0.00 0.00% 0.00 0.00% 0.00% Inapplicable
rocess
Right-of-use
123271656.00 2.96% 147932475.42 3.60% -0.64% Inapplicable
assets
Short term loans 452593861.01 10.87% 265994595.43 6.47% 4.40% Inapplicable
Contract
22785751.84 0.55% 22505426.65 0.55% 0.00% Inapplicable
liabilities
Long-term
0.00 0.00% 0.00 0.00% 0.00% Inapplicable
borrowings
Rent liabilities 51240136.68 1.23% 64918722.10 1.58% -0.35% Inapplicable
2. Major Overseas Assets
Inapplicable
3. Assets and liabilities measured based on fair value
Inapplicable
4. Restriction on rights in the assets ended the reporting period
A property owned by Switzerland based Montres Chouriet SA with net value of CNY 10889815.89 was used as a collateral
for the overseas long term loan amounting to CNY 3660090.00.Part of the notes receivable of Shenzhen FIYTA Technology Development Co. Ltd. has been discounted with a net value
of CNY 12178305.45.VI. Analysis of Investment Situation
1. General
Amount of investment in the reporting period Amount of investment in the same period of
Amount of variation
(CNY) the previous year (CNY)
0.0020000000.00-100.00%
15FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
2. Significant Equity Investment Acquired in the Reporting Period
Inapplicable
3. Significant non-equity investment in process in the reporting period
Inapplicable
4. Financial assets investment
(1) Investment in securities
Inapplicable
(2) Investment in derivatives
Inapplicable
5. Application of the raised capital
Inapplicable
VII. Sales of Significant Assets and Equity
1. Sales of Significant Assets
Inapplicable
2. Sales of Significant Equity
Inapplicable
VIII. Analysis on Principal Subsidiaries and Mutual Shareholding Companies
Particulars about the principal subsidiaries and mutual shareholding companies which may affect the Company’s net profit
by over 10%.In CNY
Company Company Principal Registered Operating
Total assets Net assets Turnover Net profit
name type business capital profit
Shenzhen Purchase &
Harmony sale and
World repairing 600000000 20472073 11778014 16023408 144848565 108214100
Subsidiaries
Watches service of .00 61.86 40.98 69.97 .81 .14
Center Co. watches and
Ltd. components
Design R &
D and sales
FIYTA Sales 450000000 503769603 370826119 206725902 -29711252. -22929313.Subsidiary of watches
Co. Ltd. .00 .95 .74 .74 34 24
and
components
16FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
& parts
Manufacture
Shenzhen
and
FIYTA
production 100000000 343733191 201162671 165421039 34849764. 31324028.Precision Subsidiary
of watches .00 .81 .79 .59 29 41
Technology
and
Co. Ltd.components
Production
Shenzhen and
FIYTA machining of
50000000.19360969314102208591925614.7068549.56874043.3
Technology Subsidiary sophisticate
00.48.012470
Developmen d
t Co. Ltd. components
and parts
Trading of
FIYTA (Hong watches and
13773752022868843020916531634650007.5901187.45319216.7
Kong) Subsidiary accessories.00.26.630533
Limited and
investment
Design R &
Emile D and sales
Chouriet of watches 41355200. 124802497 58695835. 39026084.Subsidiary -872940.51 -662185.83
(Shenzhen) and 00 .70 71 99
Limited components
& parts
Production
Shanghai
Mutual and sales of
Watch 15350000. 173541662 144790831 65530729. 10258987. 9850506.0
shareholdin watches and
Industry Co. 00 .86 .23 89 04 6
g company components
Ltd.& parts
Acquisition and disposal of subsidiaries in the reporting period
Inapplicable
Note to the principal mutual shareholding companies
Inapplicable
IX. Structurized Entities Controlled by the Company
Inapplicable
X. Risks Possibly to be Confronted with
(I) Macro market risk
At present the global political and economic situation is turbulent the events such as the conflict between Russia and
Ukraine and the Sino-US trade friction are complex and full of uncertainty and in addition the COVID-19 epidemic
repeatedly took place in many places all these have caused unpredictable impacts on the domestic economic situation
consumption environment and consumer confidence. As a result the watch industry is also facing multiple challenges.The Company shall continue to consolidate its core competitiveness and at the same time focus on "stabilizing
operations" "cost control" "high-quality development" and other related work and continuously improve its ability to deal
with market risks.
17FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
(II)The risk of changes in the competition pattern of the watch industry
In recent years with the intensification of market competition the overall concentration of the watch industry has increased
and leading companies have further improved their competitiveness through resource integration; the trend of
self-operation of their own brands has been strengthened and the requirements for shop operation and management have
been further improved; the rapid development of the Hainan duty-free market has intensified the competition of the industry;
at the same time such competition has also brought about new growth opportunities.The Company shall continue to dynamically optimize the existing brand and shop structure to improve the efficiency of a
single shop; solidly carry out refined operations accelerate digital transformation and further consolidate the level of
terminal operation and management; deepen existing duty-free business cooperation; relying on the established Hainan
wholly-owned subsidiary the company shall do a good job in the connection and layout of relevant resources and at the
same time pay close attention to opportunities such as market resource integration.(III) Risk in the change of consumer groups and preferences
As the consumer group is continuously becoming younger and consumer preferences are increasingly subdivided and
diversified the Company shall further attach importance on personalized choices and service experience.The company shall rely on the digital retail system to further promote consumer behavior research and other related work
optimize products structure upgrade shop image enhance customer service experience and innovate precision marketing
methods to better satisfy customers’ requirements.
18FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Section 4 Corporate Governance
I. General Meeting and Extraordinary General Meetings
1. General Meetings
Proportion of
Resolutions of the
Sessions Meeting type attendance of the Meeting date Date of disclosure
meetings
investors
Announcement on
the Resolution of
2021 Annual General Annual General
41.22% May 13 2022 May 14 2022 2021 Annual
Meeting Meeting
General Meeting
2. Extraordinary general meeting requested for holding by the preferred shareholders with the voting power
recovered.Inapplicable
II. Personnel Change in Directors Supervisors and Senior Executives
Names Office Taken Type Date Cause
Being Reviewed and approved at the 5th session of the Tenth
Chief Accountant appoint February 06 2022 Board of Directors the Company decided to appoint Mr.ed Song Yaoming as the Company’s chief accountant.Song
Reviewed and approved at the 7th session of the Tenth
Yaoming Being
Deputy GM and the Board of Directors the Company decided to appoint Mr.appoint April 21 2022
Secretary of the Board Song Yaoming as the Company’s deputy general manager
ed
and the Secretary of the Board.For work reasons Mr. Chen Zhuo applied for resigning the
Chen Chief Accountant & Termin posts of the Chief Accountant and the Secretary of the Board
January 28 2022
Zhuo Secretary of the Board ation of the Company. Mr. Chen no longer holds any position in the
Company after his resignation.III. Profit Distribution and Conversion of Capital Reserve into Share Capital in the Reporting Period
Inapplicable
IV. Implementation of the Company’s Equity Incentive Plan Employee Stock Ownership Plan or other Employee
Incentive Measures
1. Equity incentive
(1) Restricted Stock Incentive Plan Phase I
Reviewed and approved at the 4th session of the Tenth Board of Directors the Company satisfied the conditions for the
release of the restriction for sales in the second release period of the Company's Restricted Stock Incentive Plan (Phase I)
19FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
and the 1.244421 million restricted A-shares involved were listed for trading on February 7 2022. For the detail refer to the
Company's relevant announcement disclosed in http://www.cninfo.com.cn. on January 28 2022.Reviewed and approved at the 6th session of the Tenth Board of Directors and 2021 Annual General Meeting the
Company decided to repurchase and cancel the 60120 restricted A-shares which were already granted to but with the
restriction not yet relieved held by 3 retired incentive objects. For the detail refer to the Company's relevant
announcements disclosed in http://www.cninfo.com.cn. on March 10 2022 and May 14 2022 respectively.Reviewed and approved at the 7th session of the Tenth Board of Directors and 2021 Annual General Meeting the
Company decided to repurchase and cancel the 25718 restricted A-shares which were already granted to but with the
restriction not yet relieved held by 2 retired incentive objects. For the detail refer to the Company's relevant
announcements disclosed in http://www.cninfo.com.cn. on April 23 2022 and May 14 2022 respectively.
(2) Restricted Stock Incentive Plan Phase II
Reviewed and approved at the 6th session of the Tenth Board of Directors and 2021 Annual General Meeting the
Company decided to repurchase and cancel the 250000 restricted A-shares which were already granted to but with the
restriction not yet relieved held by 2 retired incentive objects. For the detail refer to the Company's relevant
announcements disclosed in http://www.cninfo.com.cn. on March 10 2022 and May 14 2022 respectively.Reviewed and approved at the 7th session of the Tenth Board of Directors and 2021 Annual General Meeting the
Company decided to repurchase and cancel the 100000 restricted A-shares which were already granted to but with the
restriction not yet relieved held by 2 retired incentive objects. For the detail refer to the Company's relevant
announcements disclosed in http://www.cninfo.com.cn. on April 23 2022 and May 14 2022 respectively.
2. Implementation of the Employee Stock Ownership Plan
Inapplicable
3. Other employee incentive measures
Inapplicable
20FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Section 5 Environment and Social Responsibility
I. Significant Issues concerning Environmental Protection
Does the Company or any of its subsidiaries belong to a key pollutant discharging unit as announced to the public by the
environmental protection authority?
Yes
Descriptio
Name of Numbe
n of the Distribution Pollutant Total
the r of Total Over-di
major Way of of the Discharging Discharge discharge
Company dischar discharge schargi
pollutants discharging discharging concentration Standards in volume
or its ging volume ng
or specific outlets Force verified
Subsidiary outlets
pollutant
At the port Nickel ﹤
Shanghai Nickel and Intermittent Nickel: 0.1;
of effluent 0.03 406 650
Watch chromium and 1 chromium: None
treatment chromium ﹤ tons/year tons/year
Industry effluent interruption 0.1
equipment 0.01
Construction and operation of the pollution prevention and control facilities
Shanghai Watch Co. Ltd. reconstructed the waste water treatment facility in 2016 and added 2 sets of equipment in 2018
for the purpose of ensuring discharging of nickel and chromium effluent to comply with the Emission Standard of Pollutants
for Electroplating during 2018. Up to now the facility has been operating normally and its emission has never exceeded the
limit as specified by the standard. The Company's online monitoring terminal has been docked with the government
monitoring platform for timely testing so as to ensure the emission factors to comply with the emission standard.In compliance with the Document of Shanghai Municipal Bureau of Ecology and Environment HU HUAN GUI (2020) No. 6the primary pollutant wastewater should comply with the general principle of “the water which should be classified must beclassified; the water which can be classified must be classified”. The Company started to entrust the municipal engineering
department to arrange and improve the Company’s existing wastewater pipelines commencing from August 2020
separate collect and treat the domestic sewage and electroplating effluent.In order to implement the requirements of the Ministry of Ecology and Environment for energy saving and consumption
reduction the Company newly added a set of membrane filtration heavy metal device in year 2021. As a result its
electroplating wastewater reached the standard for clean water after the treatment. Therefore the Company reuses a part
of the water (recycling) so that the total wastewater discharge last year was reduced by about 244 tons and the recycling
rate was about 37%.Environmental impact assessment on construction projects and other environmental protection administrative licensing
In 2018，Yangpu District Bureau of Ecology and Environment of Shanghai organized and held the Clean Production
Auditing and Assessment Seminar of Shanghai Watch Co. Ltd. where the Company's clean production work was assessed
audited and approved. Shanghai Watch Co. Ltd. passed the pollution discharge verification organized by Yangpu District
Bureau of Ecology and Environment of Shanghai and received the Pollutant Discharge Permit issued by the said authority
21FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
at the end of 2019. Since the individual non-heavy pollutant factors originally approved in the "Pollutant Discharge Permit"
did not belong to the Company's discharge scope the Company requested to change the "Pollutant Discharge Permit"
which was now been re-examined by the Yangpu District Bureau of Ecology and Environment and was issued on October
202021.
Contingency Plan for Emergent Environmental Incidents
Shanghai Watch Co. Ltd. prepared the Emergency Response Plan against Emergent Environmental Incidents and
regularly organizes training and exercise every year. The aforesaid plan has been approved and filed for record by Yangpu
District Bureau of Ecology and Environment of Shanghai and has been published on the Environmental Information
Disclosure Platform of Enterprises and Institutions of Shanghai.Environment Self-Monitoring Program
Yangpu District Environmental Protection Bureau of Shanghai conducts supervision once every quarter. The company has
entrusted Shanghai Textile Energy Conservation & Environmental Protection Center a competent independent agent to
conduct the monitoring. The Company is equipped with online monitoring instruments and communicates with the district
bureau of ecology and environment. The platforms of the bureau and the district government are connected to the Internet
to transmit the concentration data of heavy pollution factors 24 hours a day. In June 2022 online monitoring equipment
shall be integrated into the platform supervision of national key pollutant discharge units.Administrative penalties for environmental issues during the reporting period
Inapplicable
Other environment information necessary to be disclosed
Inapplicable
Measures taken to reduce carbon emissions during the reporting period and their effect
Inapplicable
Other information in connection with the environmental protection
The Company has publicized relevant information on the environmental protection service platform of Shanghai enterprises
and institutions in accordance with relevant regulations. Website: https://e2.sthj.sh.gov.cn/。
II. Social Responsibilities
The Company has been actively practicing social responsibility for many years and has disclosed its annual social
responsibility report successively for 15 years. For the latest situation please refer to the "2021 Social Responsibility
Report" published on www.cninfo.com.cn on March 10 2022.
22FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Section 6 Significant Events
I. Commitments finished in implementation by the Company's actual controller shareholders related parties
acquirer the Company etc. in the reporting period and commitments unfinished in implementation at the end of
the reporting period
Inapplicable
II. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and its Related Parties
Inapplicable
III. Outward guarantee against regulations
Inapplicable
IV. Engagement/Disengagement of CPAs
Has the financial report to the Semi-Annual Report been audited
No
V. Explanation of the Board of Directors and the Supervisory Committee on the Qualified Auditors' Report for the
reporting period issued by the CPAs
Inapplicable
VI. Explanation of the Board of Directors on the Qualified Auditors' Report for the previous year issued by the
CPAs
Inapplicable
VII. Matters concerning Bankruptcy Reorganization
Inapplicable
VIII. Lawsuits
Significant Lawsuits and Arbitrations
Inapplicable
Other contentious matters
Inapplicable
IX. Penalty and Rectification
Inapplicable
23FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
X. Integrity of the Company its Controlling Shareholder and Actual Controller
Inapplicable
XI. Significant Related Transactions
1. Related Transactions Related with Day-to-Day Operations
Inapplicable
2. Related transactions concerning acquisition and sales of assets or equity
Inapplicable
3. Related transactions concerning joint investment in foreign countries
Inapplicable
4. Current Associated Rights of Credit and Liabilities
Inapplicable
5. Transactions with the finance company with incidence relation
Deposit business
Amount incurred in the reporting
period
Maximum Total amount Total amount
Opening Ending
Incidence deposit limit Deposit deposited withdrawn
Related party balance (CNY balance (CNY
relation per day (CNY interest range during the during the
10000)10000)
10000) reporting reporting
period (in CNY period (in CNY
10000)10000)
Controlled
AVIC Finance by the 80000 1.665% 14778.6 217625.42 197528.44 34875.58
same party
Loan business
Amount incurred in the reporting
period
Total
Opening Total loan Ending
Incidence Loan amount Loan interest repayments
Related party balance (CNY during the balance (CNY
relation (CNY 10000) rate range during the
10000) reporting 10000)
reporting
period (in CNY
period (in CNY
10000)
10000)
Controlled
AVIC Finance by the 80000 3.65% 0 20000 20000 0
same party
Credit extension and other financial business
Inapplicable
24FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Note: The Company’s 2021 4th Extraordinary General Meeting reviewed and approved the "Proposal on Signing a
Financial Service Agreement with AVIC Finance Co. Ltd." stipulating that within 3 years commencing from the day when
the agreement came into force the Company would deposit funds with AVIC Finance Co. Ltd. every day with maximum
daily deposit balance (including accrued interest) would not exceed CNY 800 million (including foreign currency conversion
in Renminbi); the recyclable comprehensive credit line was CNY 800 million (including foreign currency conversion inRenminbi). For detail please refer to “the Announcement on the Related Transactions in Connection with Signing FinancialService Agreement with AVIC Finance Co. Ltd. No. 2021-078” disclosed on August 20 2021. During the reporting period
the daily maximum related deposits and loans between the Company and AVIC Finance did not exceed the
above-mentioned limit and there were no credit grants or other financial services incurred for time being. At the same time
the Company issued the "Risk Assessment Report on the Related Deposits and Loans with AVIC Finance Co. Ltd." for the
above matters every six months.
6. Transactions between the finance company controlled by the Company and the related parties
Inapplicable
7. Other Significant Related Transactions
Inapplicable
XII. Important Contracts and Implementation
1. Custody Contacting and Leases
(1) Custody
Inapplicable
(2) Contracting
Inapplicable
(3) Leases
Inapplicable
2. Significant Guarantees
In CNY 10000
Outward guarantees Offered by the Company and its Subsidiaries (excluding guarantee to the subsidiaries)
Date of
the Actual
Guarante
Names of announce Date of amount Type of Counter Implemen
Guarante Collateral Guarante e to
Guarante ment on occurrenc of guarante guarante tation
e line (if any) e period related
es the e guarante e e (if any) status
party?
guarante e
e line
Inapplica
25FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
ble
Total amount of Total amount of
outward guarantee outward guarantee
00
approved in the report actually incurred in the
period (A1) report period (A2)
Total amount of
Total ending balance of
outward guarantee
outward guarantee at
already approved at 0 0
the end of the report
the end of the report
period (A4)
period (A3)
Guarantee to the subsidiaries
Date of
the Actual
Guarante
Names of announce Date of amount Type of Counter Implemen
Guarante Collateral Guarante e to
Guarante ment on occurrenc of guarante guarante tation
e line (if any) e period related
es the e guarante e e (if any) status
party?
guarante e
e line
Shenzhe
n Guarante
Harmony e with
March Decembe
World 15000 15000 joint 1 year No No
10 2021 r 23
Watches responsib
2021
Center ility
Co. Ltd.Total amount of
Total guarantee quota
guarantee to the
to the subsidiaries
60000 subsidiaries actually 0
approved in the
incurred in the
reporting period (B1)
reporting period (B2)
Total guarantee quota Total balance of actual
to the subsidiaries guarantee to the
approved at the end of 60000 subsidiaries at the end 15000
the reporting period of the reporting period
(B3) (B4)
Guarantee from subsidiaries to the subsidiaries
Date of
the Actual
Guarante
Names of announce Date of amount Type of Counter Implemen
Guarante Collateral Guarante e to
Guarante ment on occurrenc of guarante guarante tation
e line (if any) e period related
es the e guarante e e (if any) status
party?
guarante e
e line
Inapplica
ble
Total amount of
Total guarantee quota
guarantee to the
to the subsidiaries
0 subsidiaries actually 0
approved in the
incurred in the
reporting period (C1)
reporting period (C2)
Total guarantee quota Total balance of actual
to the subsidiaries guarantee to the
00
approved at the end of subsidiaries at the end
the reporting period of the reporting period
26FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
(C3) (C4)
Total amount of guarantees (i.e. Total of the previous three major items)
Total guarantee quota Total amount of
to the subsidiaries outward guarantee
approved in the 60000 actually incurred in the 0
reporting period reporting period
(A1+B1+C1) (A2+B2+C2)
Total amount of
Total ending balance of
guarantees already
guarantees at the end
approved at the end of 60000 15000
of the reporting period
the reporting period
(A4+B4+C4)
(A3+B3+C3)
Proportion of the actual guarantees in the
5.01%
Company’s net assets (namely A4+B4 + C4)
where
Amount of guarantees offered to the
shareholders actual controller and its related 0
parties (D)
Amount of guarantee for liabilities directly or
indirectly offered to the guarantees with the 0
asset-liability ratio exceeding 70% (E)
Guarantee with total amount exceeding 50% of
0
the net assets (F)
Total amount of the aforesaid three guarantees
0
(D+E+F)
For the guarantee contract not yet due guarantee
responsibility incurred in the reporting period or
Inapplicable
there is evidence showing the description of the
possible related discharge duty (if any)
Note to the outward guarantee against the
Inapplicable
established procedures (if any)
Description of the guarantee with complex method
Inapplicable
3. Finance Management on Commission
Inapplicable
4. Other Important Contracts
Inapplicable
XIII. Notes to Other Significant Events
1. About Renewal of the Accounting Firm
After review and approval at the Company's 6th Extraordinary General Meeting the Company decided to renew Da Hua
CPAs LLP as the auditor of Company's 2022 annual financial statements and internal control. For detail please refer to the
“Announcement on the Renewal of the CPAs 2021-012” and the “Announcement on the Resolution of 2021 Annual General
27FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Meeting 2022-026 disclosed by the Company on http://www.cninfo.com.cn/ on March 10 2022 and May 14 2022
respectively.
2. About the Amendment of the Articles of Association
Reviewed and approved at the 7th session of the Tenth Board of Directors and 2021 Annual General Meeting theCompany decided to revise partial articles of the Articles of Association of the Company. For detail please refer to the “Planfor Revising the Articles of Association” and “Announcement on the Resolution of 2021 Annual General Meeting 2022-026disclosed by the Company on http://www.cninfo.com.cn/ on April 23 2022 and May 14 2022 respectively.XIV. Significant Events of the Company's Subsidiaries
Inapplicable
28FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Section 7 Change of the Shares and Particulars about Shareholders
I. Change of the Shares
1. Change of the Shares
In shares
Before the change Increase/decrease (+ -) in the change After the change
Bon Shares New
Proportio us converte Proportio
Quantity issui Others Sub-total Quantity
n shar d from n
ng
es reserve
I. Restricted
101354842.38%-1446266-144626686892182.04%
shares
1. Shares
held by the
state
2. Shares
held by state
legal entity
3. Other
domestic 10135484 2.38% -1446266 -1446266 8689218 2.04%
shares
Including
: Domestic
corporate
shares
Shares
held by
domestic 10135484 2.38% -1446266 -1446266 8689218 2.04%
natural
persons
4. Foreign
invested
shares
Including
: shares held
by foreign
legal entity
Shares
held by
foreign
natural
persons
II.Unrestricted 415915531 97.62% 1446266 1446266 417361797 97.96%
shares
29FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
1. CNY
ordinary 357991617 84.02% 1446266 1446266 359437883 84.36%
shares
2. Foreign
invested
shares listed 57923914 13.60% 57923914 13.60%
in Mainland
China
3. Foreign
invested
shares listed
abroad
4. Others
III. Total
426051015100.00%00426051015100.00%
shares
Cause of the change of shares
During the reporting period the conditions for the release of the restrictions for the second release period of the Company’s
restricted stock incentive plan (Phase I) were satisfied and 1244421 shares of restricted shares corresponding to equity
incentives were listed for trading; change took place in the number of lock-up shares of directors and senior executives and
201845 senior executives' lock-up shares were correspondingly reduced.
The aforesaid matters reduced the restricted shares by 1446266 shares and increased the tradable shares by 1446266
shares. The total number of the Company’s shares remained unchanged.Approval of the Change of the Shares
The Company held its 4th session of the Tenth Board of Directors held on December 28 2021 and considered that the
release conditions had been satisfied for the Second Release Period of the Restricted Stock Incentive Scheme (Phase I).During the reporting period according to the authorization of the Company's 2019 1st Extraordinary General Meeting of
shareholders the Board of Directors completed the release of sales restrictions on 1244421 A-share restricted shares in
accordance with regulations.Transfer of the Shares Changed
Inapplicable
Progress of implementation of the stock repurchase
The Company’s 2nd Session of the Tenth Board of Directors and the 5th Extraordinary General Meeting reviewed andapproved the “Proposal on Repurchase of Partial Domestically Listed Foreign Shares (B- Shares) and subsequentlydisclosed the repurchase report and series of progress announcements in accordance with relevant regulations. For the
detail please refer to the relevant announcements disclosed on www.cninfo.com.Ended the reporting period the Company accumulatively repurchased 7987217 B-shares in the Company through a
centralized bidding method with the special account for the securities repurchased accounting for 1.87% of the Company’s
total share capital; the highest transaction price of the repurchased shares was HK$7.87 per share and the lowest
30FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
transaction price was HK$7.42/share the total amount paid was HK$ 61438781.55 (with the stamp duty commission and
other transaction costs exclusive).Progress of implementation of reduction of the holding size of the shares repurchased by centralized bidding
Inapplicable
Influence of the change of the shares upon such financial indicators as the basic EPS and diluted EPS net asset value per
share attributable to the common stockholders in the past year and the latest period
Inapplicable
Other information the Company considers necessary or required by the securities regulatory authority to be disclosed.Inapplicable
31FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
2. Change of the Restricted Shares
In shares
Number
Beginning of Relieved in of End of the
the reporting the reporting restricted reporting
Names of the period period shares period
Cause of restriction Date of relieving the restriction
Shareholders Number of Number of increase Number of
restricted restricted d in the restricted
shares shares reporting shares
period
1. As at January 1 2022 6640 senior executives' lock-up shares were
Locked and not yet unlocked restricted shares unlocked；
Pan Bo 247500 33280 0 214220
held by the senior executives 2. As at February 7 2022 26640 equity incentive restricted shares
were unlocked.
1. As at January 1 2022 6640 senior executives' lock-up shares were
Locked and not yet unlocked restricted shares unlocked；
Lu Wanjun 247500 33280 0 214220
held by the senior executives 2. As at February 7 2022 26640 equity incentive restricted shares
were unlocked.
1. As at January 1 2022 6640 senior executives' lock-up shares were
Locked and not yet unlocked restricted shares unlocked；
Liu Xiaoming 247500 33280 0 214220
held by the senior executives 2. As at February 7 2022 26640 equity incentive restricted shares
were unlocked.
1. As at January 1 2022 6640 senior executives' lock-up shares were
Locked and not yet unlocked restricted shares unlocked；
Li Ming 247530 33280 0 214250
held by the senior executives 2. As at February 7 2022 26640 equity incentive restricted shares
were unlocked.
1. As at January 1 2022 4980 senior executives' lock-up shares were
Locked and not yet unlocked restricted shares unlocked；
Tang Haiyuan 195000 24960 0 170040
held by the senior executives 2. As at February 7 2022 19980 equity incentive restricted shares
were unlocked.
32FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
As at February 7 2022 19980 equity incentive restricted shares were
Bao Xianyong 160020 19980 0 140040 Not yet unlocked restricted shares
unlocked.As at February 7 2022 19980 equity incentive restricted shares were
Sun Lei 160020 19980 0 140040 Not yet unlocked restricted shares
unlocked.As at February 7 2022 19980 equity incentive restricted shares were
Sheng Li 160020 19980 0 140040 Not yet unlocked restricted shares
unlocked.
1. As at February 7 2022 33300 equity incentive restricted shares
were unlocked;
Chen Libin Locked and not yet unlocked restricted shares
306700 93300 0 213400 2.As at March 10 2022 as the original term of office had expired for
(retired) held by the retired senior executives
more than 6 months 60000 locked-up shares of the retired executives
were unlocked.
1. As at January 12022 26640 senior executives’ locked shares were
unlocked;
Chen Zhuo Locked and not yet unlocked restricted shares 2. As at February 7 2022 26640 equity incentive restricted shares
2482503328066030281000
(retired) held by the retired senior executives were unlocked.
3.On February 8 2022 as 100% of the shares were locked due to the
retirement 66030 senior executives’ locked shares were added.
1. As at February 7 2022 998001 equity incentive restricted shares
were unlocked.Other Locked and not yet unlocked restricted shares
7915444 1167696 0 6747748 2.As at March 10 2022 as the original term of office had expired for
shareholders held by the retired senior executives
more than 6 months 169695 locked-up shares of the retired executives
were unlocked.Total 10135484 1512296 66030 8689218 -- --
33FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
II. Issuing and Listing
Inapplicable
III. Number of Shareholders and Shareholding
In shares
Total preference shareholders with the
Total common shareholders at
34677 voting power recovered at the end of the 0
the end of the reporting period
reporting period (if any) (Refer to Note 8)
Shares held by the common shareholders holding over 5% shares or the top 10 common shareholders
Number Pledging marking or
Number of Increase/d
Sharehol of the Number of the freezing
common ecrease in
Names of the Nature of the ding restricted unrestricted
shares held at the Status of
Shareholders shareholder proportio common common
the end of the reporting the Quantity
n shares shares held
reporting period period shares
held
AVIC
International State
38.25%16297732700162977327
Holding corporate
Limited
Domestic
# Wu Jilin natural 0.71% 3028202 3028202 0 3028202
person
Domestic
Xu Guoliang natural 0.70% 3002200 2509900 0 3002200
person
Domestic
Qiu Hong natural 0.56% 2370000 70000 0 2370000
person
Domestic
Du Zhongyi natural 0.50% 2148711 2148711 0 2148711
person
# Zhejiang
Longyin
Investment
Management
Co. Ltd.-
Longyin Others 0.37% 1578443 1578443 0 1578443
Zunxiang No.
15 Private
Equity
Investment
Fund
Domestic
Li Shuyuan natural 0.32% 1377600 1377600 0 1377600
person
Domestic
Zhu Rui natural 0.31% 1302400 1302400 0 1302400
person
Construction
Others 0.30% 1278707 -3400787 0 1278707
Bank of
34FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
China -
Penghua
Huizhi
Optimized
Hybrid
Securities
Investment
Fund
# Zhejiang
Longyin
Investment
Management
Co. Ltd.-
Longyin Others 0.28% 1212800 1212800 0 1212800
Zunxiang No.
2 Private
Equity
Investment
Fund
About the fact that a strategic
investor or ordinary corporate
became one of the top ten
Inapplicable
common shareholders due to
placement of new shares (if
any) (Refer to Note 3)
Explanation on associated
relationship or consistent
The Company has no idea on whether the above 10 shareholders are associated or are acting in concert.action of the above
shareholders
Note to the aforesaid
Among the above shareholders AVIC International Holding Limited authorized representatives to exercise
shareholders involving
voting rights on their behalf in the Company’s 2021 Annual General Meeting with the number of
entrusting/being entrusted with
representative shares being 162977327 shares. For the result of the voting refer to the relevant
voting power and the waiver of
announcement published by the Company on http://www.cninfo.com.cn.voting power
There is a special repurchase
account among the top 10Among the top 10 shareholders there is a special repurchase account - “the Special Repurchase Securitiesshareholders (if any) (see Note
Account of Fiyta Precision Technology Co. Ltd." (second place). The number of ordinary shares held at the
11) Special note to the
end of the reporting period was 7987217 shares. According to the regulation the special repurchase
designated repurchase
account shall not be presented in the list of the top 10 shareholders.account in top 10 shareholders
(if any) (Refer to Note 11)
Shares held by top 10 shareholders of unrestricted shares
Share type
Names of the Shareholders Quantity of unrestricted shares held at the end of the reporting period Share
Quantity
type
CNY
AVIC International Holding
162977327 ordinary 162977327
Limited
shares
CNY
# Wu Jilin 3028202 ordinary 3028202
shares
CNY
Xu Guoliang 3002200 ordinary 3002200
shares
Qiu Hong 2370000 CNY 2370000
35FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
ordinary
shares
CNY
Du Zhongyi 2148711 ordinary 2148711
shares
# Zhejiang Longyin Investment
Management Co. Ltd.- CNY
Longyin Zunxiang No. 15 1578443 ordinary 1578443
Private Equity Investment shares
Fund
CNY
Li Shuyuan 1377600 ordinary 1377600
shares
CNY
Zhu Rui 1302400 ordinary 1302400
shares
Construction Bank of China -
CNY
Penghua Huizhi Optimized
1278707 ordinary 1278707
Hybrid Securities Investment
shares
Fund
# Zhejiang Longyin Investment
Management Co. Ltd.- CNY
Longyin Zunxiang No. 2 1212800 ordinary 1212800
Private Equity Investment shares
Fund
Note to the associated
relationship or consistent
action among the top 10
shareholders of non-restricted
common shares and that The Company has no idea on whether the above 10 shareholders are associated or are acting in concert.between the top 10
shareholders of non-restricted
common shares and top 10
common shareholders.
1. In addition to the 2028502 shares held through the ordinary securities account Wu Jilin one of the
shareholders of the Company also holds 999700 shares through the client credit transaction
guarantee securities account of China CICC Wealth Securities Co. Ltd. Therefore Wu Jilin is actually
holding 3028202 shares;
2. In addition to the 1225343 shares held through the ordinary securities account Zhejiang Longyin
Note to the top 10 common
Investment Management Co. Ltd.- Longyin Zunxiang No. 15 Private Equity Investment Fund also
shareholders involved in
holds 353100 shares through the client credit transaction guarantee securities account of Minsheng
margin financing & securities
Securities Co. Ltd. Therefore Zhejiang Longyin Investment Management Co. Ltd.- Longyin Zunxiang
lending (if any) (Refer to Note
No. 15 Private Equity Investment Fund is actually holding 1578443 shares;
4)
3. In addition to the 880100 shares held through the ordinary securities account Zhejiang Longyin
Investment Management Co. Ltd.- Longyin Zunxiang No. 2 Private Equity Investment Fund also holds
332700 shares through the client credit transaction guarantee securities account of Industrial
Securities Co. Ltd. Therefore Zhejiang Longyin Investment Management Co. Ltd.- Longyin Zunxiang
No. 2 Private Equity Investment Fund is actually holding 1212800 shares.Did the top ten common shareholders or top ten shareholders of unrestricted common shares conduct contractual
repurchase during the reporting period?
No
36FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
IV. Change in Shares Held by Directors Supervisors and Senior Executives
Number
Number of of
Number of Sharehol Sharehol
Number of restricted restricted Number of
shares held ding ding
shares held shares shares restricted
at the increase decrease
Office at end of the granted at the granted shares granted
Name Title beginning of d in the d in the
Status reporting beginning of during at the end of
the reporting reporting reporting
period the reporting the the reporting
period period period
(shares) period reporting period (shares)
(shares) (shares) (shares)
(shares) period
(shares)
Chairman
Zhang In
of the 0 0 0 0 0 0 0
Xuhua office
Board
In
Xiao Yi Director 0 0 0 0 0 0 0
office
Xiao In
Director 0 0 0 0 0 0 0
Zhanglin office
In
Li Peiyin Director 0 0 0 0 0 0 0
office
Deng In
Director 0 0 0 0 0 0 0
Jianghu office
Managing In
Pan Bo 280000 0 0 280000 203360 0 176720
Director office
Wang Independe In
0000000
Jianxin nt Director office
Zhong
Independe In
Hongmin 0 0 0 0 0 0 0
nt Director office
g
Tang Independe In
0000000
Xiaofei nt Director office
Chairman
of the
Zheng In
Supervisor 0 0 0 0 0 0 0
Qiyuan office
y
Committee
Cao In
Supervisor 0 0 0 0 0 0 0
Zhen office
In
Hu Jing Supervisor 9000 0 0 9000 0 0 0
office
deputy GM
Lu In
and chief 280000 0 0 280000 203360 0 176720
Wanjun office
law adviser
Liu In
Deputy GM 280000 0 0 280000 203360 0 176720
Xiaoming office
In
Li Ming Deputy GM 280040 0 0 280040 203360 0 176720
office
Chief
Accountant
Deputy
Song In
GM and the 0 0 0 0 0 0 0
Yaoming office
Secretary
of the
Board
Tang Deputy GM In 210000 0 0 210000 190020 0 170040
37FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Haiyuan office
Chief
Accountant
Chen &
Retired 281000 0 0 281000 203360 0 176720
Zhuo Secretary
of the
Board
Total -- -- 1620040 0 0 1620040 1206820 0 1053640
V. Change of the Controlling Shareholder or Actual Controller
Inapplicable
Section 8 About the Preferred Shares
Inapplicable
Section 9 About Bonds
Inapplicable
38FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Section 10 Financial Report
I. Auditors’ Report
Has the semi-annual report been audited
No
II. Financial Statements
The currency applied in the financial notes and statements is Renminbi (CNY)
1. Consolidated Balance Sheet
Prepared by FIYTA Precision Technology Co. Ltd.June 30 2022
In CNY
Items June 30 2022 January 01 2022
Current assets:
Monetary capital 393873930.55 210254737.14
Settlement reserve
Inter-bank lending
Transactional financial assets
Derivative financial assets
Notes receivable 53854971.13 61258145.80
Accounts receivable 419635705.95 388885601.28
Financing with accounts receivable
Advance payment 10582818.74 7946750.81
Receivable premium
Reinsurance accounts receivable
Reserve for reinsurance contract
receivable
Other receivables 58848161.73 61553267.82
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for sale
Inventories 1979996270.39 2050148750.89
Contract assets
Held-for-sale assets
Non-current assets due within a year
Other current assets 31268616.20 72698692.72
Total current assets 2948060474.69 2852745946.46
Non-current assets:
39FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Loan issuing and advance in cash
Equity investment
Other equity investment
Long term accounts receivable
Long-term equity investments 57618231.83 55155605.31
Investment in other equity instruments 85000.00 85000.00
Other non-current financial assets
Investment-oriented real estate 375707647.63 383425916.35
Fixed assets 340122918.20 349495316.65
Construction-in-progress
Productive biological asset
Oil and Gas Assets
Use right assets 123271656.00 147932475.42
Intangible assets 32119424.82 34035330.43
Development expenses
Goodwill
Long term expenses to be apportioned 155688540.87 163790333.44
Deferred income tax asset 86798187.24 81233274.65
Other non-current assets 42617285.90 42680753.78
Total non-current assets 1214028892.49 1257834006.03
Total assets 4162089367.18 4110579952.49
Current liabilities:
Short term borrowings 452593861.01 265994595.43
Borrowings from central bank
Loans from other banks
Transactional financial liabilities
Derivative financial liabilities
Notes payable 582928.10 21223.10
Accounts payable 199394655.23 254588895.34
Advance Receipts 7011421.98 11025664.72
Contract liabilities 22785751.84 22505426.65
Money from sale of the repurchased
financial assets
Deposits taking and interbank placement
Acting trading securities
Income from securities underwriting on
commission
Payroll payable to the employees 116493751.73 145936150.06
Taxes payable 67138530.84 67769880.01
Other payables 165853898.74 167808759.95
Including: interest payable
Dividends payable 6324013.97 5015026.30
Service charge and commission payable
40FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Payable reinsurance
Held-for-sale liabilities
Non-current liabilities due within a year 77656258.23 86949906.35
Other current liabilities 2623083.96 2798738.32
Total current liabilities 1112134141.66 1025399239.93
Non-current liabilities:
Reserve for insurance contract
Long-term borrowings
Bonds payable
Including: preferred shares
Perpetual bond
Lease liabilities 51240136.68 64918722.10
Long-term accounts payable
Long term payroll payable to the
employees
Estimated liabilities
Deferred income 2042833.90 1792833.90
Deferred income tax liability 4909143.79 5236514.03
Other non-current liabilities
Total non-current liabilities 58192114.37 71948070.03
Total liabilities 1170326256.03 1097347309.96
Owner’s equity:
Capital stock 426051015.00 426051015.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital reserve 1046504891.62 1040908194.13
Less: shares in stock 103841654.84 60585678.92
Other comprehensive income -7233490.68 -7658346.40
Special reserve 1553977.57 1062731.13
Surplus reserve 275010401.50 275010401.50
Reserve against general risks
Retained earnings 1353717970.98 1338444326.09
Total owners’ equity attributable to the parent
2991763111.153013232642.53
company
Minority shareholders’ equity
Total owner’s equity 2991763111.15 3013232642.53
Total liabilities and owners’ equity 4162089367.18 4110579952.49
Legal representative: Zhang Xuhua Chief Financial Officer: Song Yaoming
Person in charge of the Accounting Department: Tian Hui
2. Balance Sheet，Parent Company
In CNY
Items June 30 2022 January 01 2022
Current assets:
Monetary capital 351314698.75 171022392.92
41FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Transactional financial assets
Derivative financial assets
Notes receivable
Accounts receivable 6179493.15 129880.48
Financing with accounts receivable
Advance payment
Other receivables 630494908.53 717183139.00
Including: Interest receivable
Dividends receivable
Inventories
Contract assets
Held-for-sale assets
Non-current assets due within a year
Other current assets 12757760.91 13389835.13
Total current assets 1000746861.34 901725247.53
Non-current assets:
Equity investment
Other equity investment
Long term accounts receivable
Long-term equity investments 1547944151.34 1542067945.03
Investment in other equity instruments 85000.00 85000.00
Other non-current financial assets
Investment-oriented real estate 305032601.43 311379234.57
Fixed assets 217935401.13 222462397.20
Construction-in-progress
Productive biological asset
Oil and Gas Assets
Use right assets
Intangible assets 22988881.14 23910597.39
Development expenses
Goodwill
Long term expenses to be apportioned 8858911.15 9966739.10
Deferred income tax asset 1743054.84 1671761.28
Other non-current assets 4823913.52 1435800.93
Total non-current assets 2109411914.55 2112979475.50
Total assets 3110158775.89 3014704723.03
Current liabilities:
Short term borrowings 440415555.56 250256666.67
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 1181651.95 1232967.42
42FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Advance Receipts 6908249.59 11025664.72
Contract liabilities
Payroll payable to the employees 24440846.88 24758938.89
Taxes payable 7411107.76 2676682.58
Other payables 276663976.00 230594166.14
Including: interest payable
Dividends payable 6324013.97 5015026.30
Held-for-sale liabilities
Non-current liabilities due within a year
Other current liabilities
Total current liabilities 757021387.74 520545086.42
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: preferred shares
Perpetual bond
Lease liabilities
Long-term accounts payable
Long term payroll payable to the
employees
Estimated liabilities
Deferred income 1792833.90 1792833.90
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities 1792833.90 1792833.90
Total liabilities 758814221.64 522337920.32
Owner’s equity:
Capital stock 426051015.00 426051015.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital reserve 1050336024.33 1045449410.67
Less: shares in stock 103841654.84 60585678.92
Other comprehensive income
Special reserve
Surplus Reserve 275010401.50 275010401.50
Retained earnings 703788768.26 806441654.46
Total owner’s equity 2351344554.25 2492366802.71
Total liabilities and owners’ equity 3110158775.89 3014704723.03
Legal representative: Zhang Xuhua Chief Financial Officer: Song Yaoming
Person in charge of the Accounting Department: Tian Hui
3. Consolidated Profit Statement
In CNY
43FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Items The first half year of 2022 The first half year of 2021
I. Turnover 2183570749.11 2777519521.34
Including: operating income 2183570749.11 2777519521.34
Interest income
Earned insurance premium
Service charge and commission
income
II. Total operating costs 2019291580.02 2484774500.03
Including: Operating costs 1373664560.41 1738149481.70
Interest payment
Service charge and commission
payment
Surrender Value
Compensation expenses net
Provision of reserve for insurance
liabilities net
Payment of policy dividend
Reinsurance expenses
Taxes and surcharges 14201193.33 16455961.46
Sales costs 477806040.76 561630052.63
Administrative expenses 116715664.69 121391665.85
R & D expenditures 25026713.85 26370064.68
Financial expenses 11877406.98 20777273.71
Where: Interest cost 9731247.68 14778321.69
Interest income 1981825.39 2153626.51
Plus: Other income 13369782.95 11662934.28
Investment income (loss is stated with
2462626.521629328.24
“-”)
Including: return on investment in
2462626.521629328.24
associate and joint venture
Gain from the
derecognition of the financial assets
measured at amortised costExchange income (loss stated with “-“)Net exposure hedge income (lossstated with “-“)Income from change of fair value (loss
is stated with “-”)
Loss from impairment of credit (loss is
1848.85-2035236.95
stated with “-”)
Loss from impairment of assets (loss
-348218.69-1226362.68
is stated with “-”)
Income from disposal of assets (loss
-816021.16-73807.46is stated with “-“)III. Operating Profit (loss is stated with “-“) 178949187.56 302701876.74Plus: Non-operating income 208587.88 271968.27
44FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Less: Non-operating expenses 825897.36 859659.12
IV. Total profit (total loss is stated with “-”) 178331878.08 302114185.89
Less: Income tax expense 37639093.79 68549402.06V. Net Profit (net loss is stated with “-“) 140692784.29 233564783.83(I) Classification based on operation
sustainability
1. Net Profit from sustainable operation
140692784.29233564783.83
(net loss is stated with “-”)
2. Net Profit from termination of
operation (net loss is stated with “-”)
(II) Classification by ownership
1. Net profit attributable to the parent
140692784.29233544726.55
company’s owner
2. Minority shareholders’ gain/loss 0.00 20057.28
VI. Net of other comprehensive income after
424855.72-6510295.78
tax
Net of other comprehensive income after
tax attributable to the parent company’s 424855.72 -6477955.16
owner
(I) Other comprehensive income which
0.000.00
cannot be re-classified into gain and loss
1. Change of the beneficial plan
remeasured for setting
2. Other comprehensive income which
can be converted into gain and loss based on
the equity method
3. Movement of the fair value of the
investment in other equity instruments
4. Movement of the fair value of the
Company’s own credit risk
5. Others
(II) Other comprehensive income which
424855.72-6477955.16
shall be re-classified into gain and loss
1. Other comprehensive income which
can be converted into gain and loss based on
the equity method
2. Movement of the fair value of other
creditor’s right investment
3. Amount of the reclassified financial
assets counted to the other comprehensive
income
4. Provision for impairment of the
credit of the other creditor's right investment
5. Reserve for cash flow hedge
6. Conversion difference in foreign
424855.72-6477955.16
currency statements
7. Others
Net amount of other comprehensive
income after tax attributable to minority 0.00 -32340.62
shareholders
VII. Total comprehensive income 141117640.01 227054488.05
Total comprehensive income attributable to
141117640.01227066771.39
the parent company’s owner
Total comprehensive income attributable to
0.00-12283.34
minority shareholders
45FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
VIII. Earnings per share:
(I) Basic earnings per share 0.3351 0.5421
(II) Diluted earnings per share 0.3351 0.5421
Legal representative: Zhang Xuhua Chief Financial Officer: Song Yaoming
Person in charge of the Accounting Department: Tian Hui
4. Statement of Profit Parent Company
In CNY
Items The first half year of 2022 The first half year of 2021
I. Operating revenue 91642614.69 86734149.72
Less: Operating cost 19190036.95 17699646.51
Taxes and surcharges 3830748.17 3878641.68
Sales costs 630681.48 1502340.61
Administrative expenses 32867677.72 35277870.48
R & D expenditures 9134485.17 10669576.37
Financial expenses -613920.42 2473687.51
Where: Interest cost 1770519.63 4352044.36
Interest income 1830268.89 1885611.98
Plus: Other income 587709.30 1283696.46
Investment income (loss is stated with
2462626.521629328.24
“-”)
Including: return on investment in
2462626.521629328.24
associate and joint venture
Gain from the derecognition
of the financial assets measured at amortised
cost (loss is stated with “-”)
Net exposure hedge income (lossstated with “-“)Income from change of fair value (loss
is stated with “-”)
Loss from impairment of credit (loss is
-186946.13-227114.99
stated with “-”)
Loss from impairment of assets (loss
0.000.00
is stated with “-”)
Income from disposal of assets (loss
-13335.34-32709.96is stated with “-“)II. Operating Profit (loss is stated with “-“) 29452959.97 17885586.31Plus: Non-operating income 104980.99 68243.42
Less: Non-operating expenses 3084.22 0.00III. Total profit (total loss is stated with “-“) 29554856.74 17953829.73Less: Income tax expense 6788603.54 4109028.61IV. Net Profit (net loss is stated with “-“) 22766253.20 13844801.12(I) Net Profit from sustainable operation
22766253.2013844801.12
(net loss is stated with “-”)
(II) Net Profit from termination of operation
(net loss is stated with “-”)
46FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
V. Net of other comprehensive income after
0.000.00
tax
(I) Other comprehensive income which
0.000.00
cannot be re-classified into gain and loss
1. Change of the beneficial plan
remeasured for setting
2. Other comprehensive income which
can be converted into gain and loss based on
the equity method
3. Movement of the fair value of the
investment in other equity instruments
4. Movement of the fair value of the
Company’s own credit risk
5. Others
(II) Other comprehensive income which
0.000.00
shall be re-classified into gain and loss
1. Other comprehensive income which
can be converted into gain and loss based on
the equity method
2. Movement of the fair value of other
creditor’s right investment
3. Amount of the reclassified financial
assets counted to the other comprehensive
income
4. Provision for impairment of the
credit of the other creditor's right investment
5. Reserve for cash flow hedge
6. Conversion difference in foreign
currency statements
7. Others
VI. Total comprehensive income 22766253.20 13844801.12
VII. Earnings per share:
(I)Basic earnings per share
(II)Diluted earnings per share
Legal representative: Zhang Xuhua Chief Financial Officer: Song Yaoming
Person in charge of the Accounting Department: Tian Hui
5. Consolidated Cash Flow Statement
In CNY
Items The first half year of 2022 The first half year of 2021
I. Cash flows arising from operating activities:
Cash received from sales of goods and
2393028123.163032558393.33
supply of services
Net increase of customers’ deposit and
due from banks
Net increase of borrowings from the central
bank
Net increase of borrowings from other
financial institutions
Cash received from the premium of the
original insurance contract
47FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Net cash received from the reinsurance
business
Net increase of the reserve from policy
holders and investment
Cash received from interest service
charge and commission
Net increase of loan from other banks
Net increase of fund from repurchase
business
Net cash received from securities trading
on commission
Rebated taxes received 4558409.98 332318.54
Other operation activity related cash
37580077.5138766804.92
receipts
Subtotal of cash flow in from operating
2435166610.653071657516.79
activity
Cash paid for purchase of goods and
1500723327.632066444330.76
reception of labor services
Net increase of loans and advances to
customers
Net increase of due from central bank and
due from other banks
Cash from payment for settlement of the
original insurance contract
Net increase of the lending capital
Cash paid for interest service charge and
commission
Cash for payment of policy dividend
Cash paid to and for staff 367134428.28 393019916.39
Taxes paid 133532633.53 162959165.63
Other business activity related cash
155389957.61244079540.08
payments
Subtotal of cash flow out from operating
2156780347.052866502952.86
activity
Net cash flows arising from operating
278386263.60205154563.93
activities
II. Cash flow arising from investment
activities:
Cash received from recovery of investment
Cash received from investment income
Net cash from disposal of fixed
assetsintangible assets and recovery of 119998.33 40157.94
other long term assets
Net cash received from disposal of
subsidiaries and other operating units
Other investment activity related cash
receipts
Subtotal of cash flow in from investment
119998.3340157.94
activity
Cash paid for purchase/construction of
fixed assets Intangible assets and other long 53962036.53 80158290.74
term assets
Cash paid for investment
Net increase of the pledged loan
48FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Net cash paid for acquisition of
subsidiaries and other operation units
Other investment related cash payments
Subtotal of cash flow out from investment
53962036.5380158290.74
activity
Net cash flow arising from investment
-53842038.20-80118132.80
activities:
III. Cash flow arising from fund-raising
activities:
Cash received from absorbing investment 58216000.00
Incl.: Cash received from the subsidiaries’
absorption of minority shareholders’
investment
Cash received from loans 705155704.29 662716163.39
Other fund-raising activity related cash
receipts
Subtotal of cash flow in from fund raising
705155704.29720932163.39
activity
Cash paid for debt repayment 500174365.00 726557058.70
Cash paid for dividend/profit distribution or
129988270.60182851224.13
repayment of interest
Including: Dividend and profit paid by the
0.000.00
subsidiaries to minority shareholders
Cash paid for other financing activities 116704112.45 54063872.68
Sub-total cash flow paid for financing
746866748.05963472155.51
activities
Net cash flow arising from fund-raising
-41711043.76-242539992.12
activities
IV. Change of exchange rate influencing the
786011.77-713568.03
cash and cash equivalent
V. Net increase of cash and cash equivalents 183619193.41 -118217129.02
Plus: Opening balance of cash and cash
210254737.14353057285.71
equivalents
VI. Ending balance of cash and cash
393873930.55234840156.69
equivalents
Legal representative: Zhang Xuhua Chief Financial Officer: Song Yaoming
Person in charge of the Accounting Department: Tian Hui
6. Cash Flow Statement Parent Company
In CNY
Items The first half year of 2022 The first half year of 2021
I. Cash flows arising from operating activities:
Cash received from sales of goods and
83213751.4485465489.50
supply of services
Rebated taxes received 7647.56 0.00
Other operation activity related cash
2152559822.692790729542.97
receipts
Subtotal of cash flow in from operating
2235781221.692876195032.47
activity
Cash paid for purchase of goods and
0.000.00
reception of labor services
Cash paid to and for staff 31495381.68 38235882.75
49FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Taxes paid 8848751.02 7088803.03
Other business activity related cash
2023994609.322851858748.03
payments
Subtotal of cash flow out from operating
2064338742.022897183433.81
activity
Net cash flows arising from operating
171442479.67-20988401.34
activities
II. Cash flow arising from investment
activities:
Cash received from recovery of investment
Cash received from investment income
Net cash from disposal of fixed
assetsintangible assets and recovery of 3973162.69 3200.00
other long term assets
Net cash received from disposal of
subsidiaries and other operating units
Other investment activity related cash
receipts
Subtotal of cash flow in from investment
3973162.693200.00
activity
Cash paid for purchase/construction of
fixed assets Intangible assets and other long 2196743.47 14452808.81
term assets
Cash paid for investment
Net cash paid for acquisition of
subsidiaries and other operation units
Other investment related cash payments
Subtotal of cash flow out from investment
2196743.4714452808.81
activity
Net cash flow arising from investment
1776419.22-14449608.81
activities:
III. Cash flow arising from fund-raising
activities:
Cash received from absorbing investment 58216000.00
Cash received from loans 690000000.00 650000000.00
Other fund-raising activity related cash
0.000.00
receipts
Subtotal of cash flow in from fund raising
690000000.00708216000.00
activity
Cash paid for debt repayment 500000000.00 600000000.00
Cash paid for dividend/profit distribution or
129931071.56180890301.90
repayment of interest
Cash paid for other financing activities 53318818.77 6106577.91
Sub-total cash flow paid for financing
683249890.33786996879.81
activities
Net cash flow arising from fund-raising
6750109.67-78780879.81
activities
IV. Change of exchange rate influencing the
323297.27-224917.40
cash and cash equivalent
V. Net increase of cash and cash equivalents 180292305.83 -114443807.36
Plus: Opening balance of cash and cash
171022392.92292055169.74
equivalents
VI. Ending balance of cash and cash
351314698.75177611362.38
equivalents
50FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Legal representative: Zhang Xuhua Chief Financial Officer: Song Yaoming
Person in charge of the Accounting Department: Tian Hui
7. Consolidated Statement of Changes in Owner’s Equity
Amount in the reporting period
In CNY
The first half year of 2022
Owners’ equity attributable to the parent company
Other equity instruments Other Provi Minor Total
Items Capit Less: comp Speci Surpl sion Retai
ity
Capit share ownePrefe
Perp al treas rehen al us for ned Other Sub-t holde
al r’s rred Other rs’
etual reser ury sive reser Reser gener earni s otal
stock equity equity share s
bond ve stock incom ve ve al ngs
s
e risks
1040133830133013
I. Ending 4260 6058 -765 1062 2750
908444232232
balance of the 5101 5678 8346 731. 1040
194.1326.0642.5642.5
previous year 5.00 .92 .40 13 1.50
3933
Plus:
Change in
accounting
policy
Correcti
on of previous
errors
Consoli
dation of
enterprises
under the
common control
Others
1040133830133013
II. Opening 4260 6058 -765 1062 2750
908444232232
balance of the 5101 5678 8346 731. 1040
194.1326.0642.5642.5
reporting year 5.00 .92 .40 13 1.50
3933
III.Decrease/increa 5596 4325 1527 -214 -214
42484912
se of the report 697. 5975 3644 6953 6953
55.7246.44
year (decrease 49 .92 .89 1.38 1.38is stated with “-“)(I) Total 1406 1411 1411
4248
comprehensive 9278 1764 1764
55.72
income 4.29 0.01 0.01
(II) Owners’ input 5596 4325 -376 -376
and decrease of 697. 5975 5927 5927
capital 49 .92 8.43 8.43
1 Common
5025-502-502
shares
283152835283
contributed by.881.881.88
the owner
51FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
2 Capital
contributed by
other equity
instruments
holders
3 Amount of
5611-69912601260
payment for
740.685585968596
shares counted
66.96.62.62
to owners’ equity
-150-150-150
4 Others
43.1743.1743.17
-125-125-125
(III) Profit
419141914191
Distribution
39.4039.4039.40
1 Provision of
surplus reserve
2 Provision for
general risks
3 Distributions to -125 -125 -125
the owners (or 4191 4191 4191
shareholders) 39.40 39.40 39.40
4 Others
(IV) Internal
carry-over of
owners’ equity
1 Capitalization
of capital
reserve (or
capital stock)
2 Capitalization
of surplus
reserve (or
capital stock)
3 Loss made up
for with surplus
reserve
4 Setting of the
amount involved
in the movement
of the beneficial
plan carried over
to the retained
earnings
5 Other
comprehensive
income
carried-over to
the retained
earnings
6 Others
(V) Special 4912 4912 4912
reserve 46.44 46.44 46.44
52FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
1 Provision in
600060006000
the reporting
00.0000.0000.00
period
-108-108-108
2 Applied in the
753.5753.5753.5
reporting period
666
(VI) Others
1046135329912991
IV. Ending 4260 1038 -723 1553 2750
504717763763
balance of the 5101 4165 3490 977. 1040
891.6970.9111.1111.1
reporting period 5.00 4.84 .68 57 1.50
2855
Amount of the previous year
In CNY
The first half year of 2021
Owners’ equity attributable to the parent company
Minor
Other equity instruments Other Provi
ity Total
Items Capit Less: comp Speci Surpl sion Retai
Capit share ownePrefe
Perp al treas rehen al us for ned Other Sub-t
al holde r’s rred Other
etual reser ury sive reser Reser gener earni s otal
stock rs’ equity share s
bond ve stock incom ve ve al ngs equity
s
e risks
1021116427992799
I. Ending 4280 6163 2465
49097684909481228960
balance of the 9188 3530 3186
387.771.41911.5388.03.34671.4
previous year 1.00 .48 6.87
8193
Plus:
-431-431-431
Change in
929592959295
accounting.51.51.51
policy
Correcti
on of previous
errors
Consoli
dation of
enterprises
under the
common control
Others
1021116027952795
II. Opening 4280 6163 2465
49097681716291228641
balance of the 9188 3530 3186
387.771.41616.0092.53.34375.9
reporting year 1.00 .48 6.87
8082
III.Decrease/increa 7458 5716 5623 -647 5932 6153 6151
se of the report 641. 8410 8941 7955 4660 0506 8223
91.9683.34
year (decrease 00 .16 .98 .16 .82 .80 .46is stated with “-“)(I) Total -647 2335 2270 2270
-122
comprehensive 7955 4472 6677 5448
83.34
income .16 6.55 1.39 8.05
(II) Owners’ input 7458 5716 5623 8388 8388
and decrease of 641. 8410 8941 109. 109.
53FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
capital 00 .16 .98 18 18
1 Common
745849416166-479-479
shares
641.1923840278387838
contributed by
00.00.49.49.49
the owner
2 Capital
contributed by
other equity
instruments
holders
3 Amount of
7759-54213181318
payment for
864.946093249324
shares counted
16.51.67.67
to owners’ equity
-337-337-337
4 Others
7.007.007.00
-174-174-174
(III) Profit
220022002200
Distribution
65.7365.7365.73
1 Provision of
surplus reserve
2 Provision for
general risks
3 Distributions to -174 -174 -174
the owners (or 2200 2200 2200
shareholders) 65.73 65.73 65.73
4 Others
(IV) Internal
carry-over of
owners’ equity
1 Capitalization
of capital
reserve (or
capital stock)
2 Capitalization
of surplus
reserve (or
capital stock)
3 Loss made up
for with surplus
reserve
4 Setting of the
amount involved
in the movement
of the beneficial
plan carried over
to the retained
earnings
5 Other
comprehensive
income
carried-over to
the retained
54FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
earnings
6 Others
295629562956
Special reserve
91.9691.9691.96
1 Provision in
491649164916
the reporting
05.6805.6805.68
period
-195-195-195
2 Applied in the
913.7913.7913.7
reporting period
222
(VI) Others
1078121928572857
IV. Ending 4355 1178 -550 2465
6582956496159159
balance of the 5052 7247 1083 3186
797.991.96276.8599.3599.3
reporting period 2.00 2.46 .75 6.87
4288
Legal representative: Zhang Xuhua Chief Financial Officer: Song Yaoming
Person in charge of the Accounting Department: Tian Hui
8. Consolidated Statement of Changes in Owner’s Equity Parent Company
Amount in the reporting period
In CNY
The first half year of 2022
Other equity instruments Other Retaine
Less: Total
Items Capital Preferre Capital compre Special Surplus d
Perpetu treasury Others owners’
stock d Others reserve hensive reserve Reserve earning
al bond stock equity
shares income s
I. Ending 10454 24923
42605160585275010806441
balance of the 49410. 66802.
015.00678.92401.50654.46
previous year 67 71
Plus:
Change in
accounting
policy
Correcti
on of previous
errors
Others
II. Opening 10454 24923
42605160585275010806441
balance of the 49410. 66802.
015.00678.92401.50654.46
reporting year 67 71
III.Decrease/increa -10265 -14102
4886643255
se of the report 2886.2 2248.4
13.66975.92
year (decrease 0 6is stated with “-“)(I) Total
2276622766
comprehensive
253.20253.20
income
55FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
(II) Owners’ input
4886643255-38369
and decrease of
13.66975.92362.26
capital
1 Common
shares 50252 -50252
contributed by 831.88 831.88
the owner
2 Capital
contributed by
other equity
instruments
holders
3 Amount of
payment for 49016 -69968 11898
shares counted 56.83 55.96 512.79
to owners’ equity
-15043.-15043.
4 Others
1717
-12541-12541
(III) Profit
9139.49139.4
Distribution
00
1 Provision of
surplus reserve
2 Distributions to -12541 -12541
the owners (or 9139.4 9139.4
shareholders) 0 0
3 Others
(IV) Internal
carry-over of
owners’ equity
1 Capitalization
of capital reserve
(or capital stock)
2 Capitalization
of surplus
reserve (or
capital stock)
3 Loss made up
for with surplus
reserve
4 Setting of the
amount involved
in the movement
of the beneficial
plan carried over
to the retained
earnings
5 Other
comprehensive
income
carried-over to
the retained
earnings
56FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
6 Others
Special reserve
1 Provision in
the reporting
period
2 Applied in the
reporting period
(VI) Others
IV. Ending 10503 23513
426051103841275010703788
balance of the 36024. 44554.
015.00654.84401.50768.26
reporting period 33 25
Amount of the previous year
In CNY
The first half year of 2021
Other equity instruments Other Retaine
Less: Total
Items Capital Preferre Capital compre Special Surplus d
Perpetu treasury Others owners’
stock d Others reserve hensive reserve Reserve earning
al bond stock equity
shares income s
I. Ending 10271 23622
42809161633246531722064
balance of the 45928. 01101.
881.00530.48866.87955.20
previous year 88 47
Plus:
Change in
accounting
policy
Correcti
on of previous
errors
Others
II. Opening 10271 23622
42809161633246531722064
balance of the 45928. 01101.
881.00530.48866.87955.20
reporting year 88 47
III.Decrease/increa -16037 -15310
745865605456238
se of the report 5264.6 1479.9
41.00085.60941.98
year (decrease 1 9is stated with “-“)(I) Total
1384413844
comprehensive
801.12801.12
income
(II) Owners’ input
74586560545623872737
and decrease of
41.00085.60941.9884.62
capital
1 Common
shares 74586 49411 61668 -47978
contributed by 41.00 923.00 402.49 38.49
the owner
2 Capital
contributed by
other equity
57FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
instruments
holders
3 Amount of
payment for 66455 -54294 12075
shares counted 39.60 60.51 000.11
to owners’ equity
-3377.0-3377.0
4 Others
00
-17422-17422
(III) Profit
0065.70065.7
Distribution
33
1 Provision of
surplus reserve
2 Distributions to -17422 -17422
the owners (or 0065.7 0065.7
shareholders) 3 3
3 Others
(IV) Internal
carry-over of
owners’ equity
1 Capitalization
of capital reserve
(or capital stock)
2 Capitalization
of surplus
reserve (or
capital stock)
3 Loss made up
for with surplus
reserve
4 Setting of the
amount involved
in the movement
of the beneficial
plan carried over
to the retained
earnings
5 Other
comprehensive
income
carried-over to
the retained
earnings
6 Others
Special reserve
1 Provision in
the reporting
period
2 Applied in the
reporting period
(VI) Others
IV. Ending 435550 10832 117872 246531 561689 22090
58FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
balance of the 522.00 00014. 472.46 866.87 690.59 99621.reporting period 48 48
Legal representative: Zhang Xuhua Chief Financial Officer: Song Yaoming
Person in charge of the Accounting Department: Tian Hui
III. Company Profile
1.Place of Registration Organization Form and Address of the Head Office
FIYTA Precision Technology Co. Ltd. (the “Company”) was founded under the approval of Shen Fu Ban Fu (1992) 1259
issued by the General Office of Shenzhen Municipal Government through the restructuring of former Shenzhen FIYTA
Time Industrial Company by the promoter of China National Aero-Technology Import and Export Shenzhen Industry &
Trade Center (name changed to “China National Aero-Technology Shenzhen Co. Ltd” lately) on 25 December 1992. On 3
June 1993 both the Company was listed on Shenzhen Stock Exchange. The Company holds business license with the
Unified Social Credit Code of 91440300192189783K.After the distribution of bonus shares placement of new shares conversion to share capital additional issuance of new
shares and share repurchase and cancellation over the years as of June 30 2022 the Company has issued a total of
426051000 shares with a registered capital of CNY 426051000. The Company’s registered address is FIYTA
Technology Building Gaoxin S. Road One Nanshan District ShenzhenChina. Head office address: FIYTA Technology
Building Gaoxin S. Road One Nanshan District Shenzhen Guangdong Province; the Parent Company is AVIC
International Holding Limited; the Eventual Controller is Aviation Industry Corporation of China
2.Business Nature and Principal Business Activities
The business nature and principal business activities of the Company and its subsidiaries are: production and sales of
various pointer type mechanical watches quartz watches and their driving units spares and parts various timing
apparatus processing and wholesale of K gold watches and ornament watches smart watches; domestic trade materials
supply and sales (excluding the commodities for exclusive operation exclusive control and monopoly); property
management and lease; design service; R&D design production sales and technical services of chronometers and their
parts and components and other precision parts; self-run import & export business (implemented according to the
Document SHEN MAO GUAN DENG ZHENG ZI No. 2007-072) etc.
3. Approval for the Financial Statements for Issuing
The financial statements were approved and issued through the by the Board of Directors dated August 18 2022.There were 12 subsidiaries consolidated in the financial statements during the reporting period. For the detail refer to Note
IX. "Equity in Other Entities".The entities included in the scope of the consolidated financial statements in the reporting period remain unchanged
compared with the previous period. For details please refer to Note VIII “Changes of the consolidation scope”.
59FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
IV. Basis for preparation of the financial statements
1. Preparation Basis
The Company makes recognitions and measurements according to the actual transactions and events in the light of the
"Accounting Standards for Business Enterprises - Basic Standards" promulgated by the Ministry of Finance and specific
accounting standards guidelines for the application of accounting standards for enterprises interpretations of accounting
standards for enterprises and other relevant regulations (hereinafter collectively referred to as the "Accounting Standards
for Enterprises"); on this basis prepares the financial statements with consideration of the relevant provisions of the China
Securities Regulatory Commission - " Preparation Rules for Information Disclosure by Companies Offering Securities to the
Public No. 15—General Provisions on Financial Reports (2014 Revision) and the Notice on Issues concerning the
Implementation of the New Accounting Standards for Business Enterprises by Listed Companies.
2. Operation on Going Concern Basis
The Company has assessed its going-concern ability for 12 months from the end of the reporting period and has not found
any matters or circumstances that may lead to significant doubts about the going-concern ability. As a result the financial
statements of the Company have been prepared on going concern basis.V. Important accounting policies and accounting estimates
Presentation on specific accounting policies and accounting estimates:
1. The Company makes specific accounting policies and estimates according to its nature of business. Accounting policies
and estimates mainly includes: method of estimated credit loss accrual (Note V. 11 Note V. 12 and Note V. 14)
measurement of inventory (Note V. 15) depreciation of investment property and fixed asset and amortization of intangible
asset (Note V. 23 Note V.24 and Note V. 30) revenue (Note V 39) etc.Based on historical experience and other factors including reasonable expectations for future events the Company
continuously evaluates the important estimates and key assumptions used. If material changes to following accounting
estimate and key assumption incurred material impact would happened to the carrying value of the Company’s assets and
liabilities in coming accounting year：
Measurement of expected credit loss of accounts receivable and other receivables The management estimates impairment
loss provision to accounts receivable and other receivables based on the judgments to estimated credit loss of accounts
receivable and other receivables. If any events occurred that indicated the Company may not be able to recover the
balance amount estimation is needed in provision accrual. If the expected number is different with the estimated figure the
difference will affect the carrying value of accounts receivable and other receivables and the impairment loss expenses in
corresponding accounting period.Impairment to inventory. The Company recognizes provision for obsolete inventories based on the excess of the cost of
inventory over its net realizable value. In determining the net realizable value of inventories the management uses
significant judgments to estimate the selling price cost to finish manufacturing and selling expenses and associated taxes.
60FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
If the management revises estimated selling price and cost to finish manufacturing and selling expenses the NAV
estimation would be affected and the difference would have an effect to the inventory provision.Estimation of long-term asset impairment. When evaluating whether there is impairment to long-term asset the
management mainly considers the following: (1) whether the events affect the asset impairment have already incurred; (2)
whether the discounted cash flow from continue usage of the asset or disposal is lower than its carrying amount; and (3)
whether major assumption used in estimating the future cash flow is appropriate.Changes to related assumption adopted in determining impairment such as profitability discounting rate and growth rate
may have material impact to the present value used in impairment test and result in impairment to above mentioned
long-term assets.Depreciation and amortization. The estimated residual value and useful life of investment property fixed asset and
intangible asset that used by the Company are based on historical actual useful life and actual residual value of assets with
similar nature or functions. In the process of using such assets estimated useful life and residual value may vary
depending on the economic environment technological environment and other environment that the assets located. If there
is difference between the expectation and previous estimation proper adjustments will be made by the management.Share-based payments. The management makes best estimation based on up-to-date number of employees who have
exercisable shares and adjusting the number of exercisable equity instrument on each balance sheet date in the vesting
period. If there is difference between current year exercisable employee and previous estimation proper adjustments will
be made by the management.Deferred income tax asset. Deferred income tax asset of taxable losses shall be recognized to the extent that there will
have sufficient taxable income to offset. This involves significant judgments to estimate the timing and amount of future
taxable profit and taking into consideration of tax planning so as to determine the amount of deferred tax asset.Income tax. The final tax treatment of many transaction and events are with uncertainty in the normal course of operation.Significant judgments involves in accrual of corporate income tax. If there is difference between the final discretion and the
amount recorded in books the difference will affect the amount of tax in the period of final discretion.
1. Statement on complying with the accounting standards for business enterprise
The financial statements of the Company have been prepared in accordance with the requirements of Accounting
Standards for Business Enterprises. These financial statements present truly and completely the financial position the
results of operations and the cash flows for reporting period of the Company.
2.Accounting period
The accounting period of the Company is the calendar year i.e. from 1st January to 31st December of each year.
3. Operating cycle
The operating cycle refer to the period from purchasing assets for process to realizing cash or cash equivalent. The
Company’s operating cycle is 12 months which is also used as standard to determine the liquidity of asset and liabilities.
61FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
4. Recording Currency
The Company and its domestic subsidiaries use Renminbi (CNY) as the function currency for book keeping. FIYTA Hong
Kong Co. Ltd. one of the Company's overseas subsidiaries one of the subsidiaries of FIYTA HK (hereinafter referred to as
“Station-68”) has determined Hong Kong Dollars as its recording currency for accounting in accordance with the currencies
available in its major economic environment where it is operated. Montres Chouriet SA one of the subsidiaries of FIYTA
Hong Kong determines Swiss Franc as its recording currency for accounting in accordance with the currencies available in
its major economic environment where it is operated and Swiss France is converted into Renminbi in preparing its financial
statements. The currency the Company takes in preparation of these financial statements is Renminbi.
5. The accounting treatment on consolidation of the enterprises under the same control and not under the same
control
(1) If a business combination is achieved through multiple steps of which the terms condition and economical
effect is in line with one or more criteria as followed the multiple transactions shall be dealt with as one-package
transaction.* the transactions were entered into at the same time or by considering each other’s influence;
* a complete business result can only be achieved by combining all these transactions together;
* the performing of one transaction is depended on at least one other transaction;
* a transaction is not economical if it is considered stand along but it will become economical if it is considered in
combination with other transactions.
(2)Business combination involving entities under common control
For a business combination involving enterprises under common control the assets acquired and liabilities assumed are
measured based on their carrying amounts in the consolidated financial statements of the ultimate controlling party at the
combination date except for adjustments due to different accounting policies. The difference between the carrying amount
of the net assets acquired and the consideration paid for the combination (or the total par value of shares issued) is
adjusted against share premium in the capital reserve with any excess adjusted against retained earnings.If there is contingent consideration and provision or assets are required to be recognized the difference between the
provision or assets and the contingent consideration shall adjust the capital reserve with any excess adjusted against
retained earnings.If business combinations involving entities under common control achieved in stages that involves multiple transactions
belongs to one-package transaction all transactions shall be dealt with as one transaction. If not the accounting treatment
is as follows: Initial investment cost is the acquirer’s share of the carrying amount of the net assets of the acquiree in the
consolidated financial statements of the ultimate controlling party at the combination date. The difference between the initial
investment cost and the sum of carrying amount of investment prior to combination date and carrying amount of new
considerations paid for the combination at the combination date is adjusted to capital reserve (share premium) . If the
capital reserve is not sufficient to absorb the difference any excess is adjusted against retained earnings. he difference
between the carrying amount of the net assets acquired and the sum of carrying amount of investment prior to combination
date and carrying amount of new considerations paid for the combination at the combination date is adjusted to capital
reserve (share premium) . If the capital reserve is not sufficient to absorb the difference any excess is adjusted against
retained earnings. The profit or loss other comprehensive income and changes in other owner’s equity recognized by the
acquirer during the period from the later of initial investment date and the date that the acquirer and acquiree both under
62FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
common ultimate control to the combination date are offset the opening retained earnings or profit for loss for the current
period in the comparative statements.
(3)Business combination involving entities not under common control
The purchase date refers to the date that the Company actually acquired control over the acquire i.e. the date when the
control over the acquiree’s net assets or decision of business operation has been transferred to the Company. If the
Company fulfills the following conditions at the same time it is considered that the control has been transferred:
* the contract or agreement of business combination has been approved by internal power department;
* related matters has been approved by state supervisory authorities if needed;
* procedures of asset transfer has been completed;
* the Company has been made majority of payments and has the ability and plan to make the residual payments;
* the Company is in substances acquired the business and operating policies and enjoyed corresponding interests and
undertaking risks of the acquire.On the purchase date assets transferred liabilities incurred or assumed as the consideration paid shall be measured at fair
value. The difference between the fair value and carrying amount shall be charged to current period profit or loss.Where the combination cost exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets the
difference is recognized as goodwill and subsequently measured on the basis of its cost less accumulated impairment
provisions. Where the combination cost is less than the acquirer’s interest in the fair value of the acquiree’s identifiable net
assets the difference is recognized in profit or loss for the current period after reassessment.If business combinations involving entities not under common control achieved in stages that involves multiple transactions
belong to one-package transaction all the transactions shall be treated as one. Otherwise if the equity investment held
before the combination date is accounted for by the equity method the sum of the book value of the equity investment of
the acquiree held before the acquisition date and the new investment cost on the acquisition date shall be regarded as the
initial investment cost of the investment; Other comprehensive income recognized by the equity investment held before the
acquisition date due to accounting by the equity method shall be accounted for on the same basis as the investee's direct
disposal of the relevant assets or liabilities when the investment is disposed of. If the equity investment held before the
combination date is accounted for by the recognition and measurement standards of financial instruments the sum of the
fair value of the equity investment on the combination date plus the new investment cost shall be regarded as the initial
investment cost on the combination date. The difference between the fair value and book value of the originally held equity
and the accumulated changes in fair value originally included in other comprehensive income should be fully transferred to
the current return on investment on the combination date.
(4)Transaction costs for business combination
The overhead for the business combination including the expenses for audit legal services valuation advisory and other
administrative expenses are recorded in profit or loss for the current period when incurred. The transaction costs of equity
or debt securities issued as the considerations of business combination are included in the initial recognition amount of the
equity or debt securities.
6. Method of preparing consolidated financial statements
(1) Scope of consolidation
63FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
The scope of consolidated financial statements is based on control. All subsidiaries (including standalone entity that
controlled by the Company) are all included in the scope of consolidation.
(2) Procedures of consolidation
The consolidated financial statements are prepared by the Company based on the financial statements of the Company
and its subsidiaries and other relevant information. The whole enterprise is considered as one accounting body when
preparing consolidated financial statement and reflect the whole group’s financial position performance and cash flow
according to unified accounting policies based on accounting standards.All subsidiaries that are included in the scope of consolidation adopt same accounting policies and accounting period. If
there are differences the subsidiaries shall adjust its policies and accounting period accordingly.When preparing consolidated financial statements the accounting policies and accounting periods of the subsidiaries
should be consistent with those established by the Company and all significant intra-group balances and transactions are
eliminated. If the treatment based on enterprise group angle is different with the angle from subsidiaries’ it shall be treated
based on enterprise group angle.The portion of a subsidiary’s equity that is not attributable to the parent is treated as non-controlling interests and presented
separately in the consolidated balance sheet within shareholders’ equity. The portion of net profit or loss of subsidiaries for
the period attributable to non-controlling interests is presented separately in the consolidated income statement below the
“net profit” line item. When the amount of loss for the current period attributable to the non-controlling shareholders of a
subsidiary exceeds the non-controlling shareholders’ share of the opening owners’ equity of the subsidiary the excess is
still allocated against the non-controlling interests.Where a subsidiary or business has been acquired through a business combination involving enterprises under common
control in the reporting period the subsidiary or business is deemed to be included in the consolidated financial statements
from the date they are controlled by the ultimate controlling party.Where a subsidiary or business has been acquired through a business combination not involving enterprises under
common control in the reporting period the financial statements of subsidiaries shall be adjusted on the basis of fair value
of identifiable net assets on purchase date.
(3) Addition of subsidiaries or business operation
Where a subsidiary or business has been acquired through a business combination involving enterprises under common
control in the reporting period the subsidiary or business is deemed to be included in the consolidated financial statements
from the date they are controlled by the ultimate controlling party. Their operating results and cash flows are included in the
consolidated income statement and consolidated cash flow statement respectively from the date they are controlled by the
ultimate controlling party.If the Company can exert control over the investee under common control because of addition of investment adjustments
shall be made as if all the combining party are at the current condition in the angle of ultimate controlled party. Equity
investment held before acquired control profit or loss other comprehensive income and other net asset changes that have
already recognized between the later of acquiring original equity and the date under common control and combination date
shall offset opening retained earnings or current period profit or loss respectively.
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In the reporting period if there is subsidiary or business addition involving entities not under common control no
adjustments shall be made to the consolidated balance sheet. The revenue expenses and profit from the purchasing date
to period end shall be included in consolidated income statement. The cash flows from the purchasing date to period end
shall be included in consolidated cash flow statement.Where a subsidiary or business has been acquired through a business combination not involving enterprises under
common control by means of investment addition in the reporting period equity held before the purchase date shall be
re-measured at fair value. Difference between the fair value and the carrying amount shall be charged to current period
investment gain. Changes related to equity method such as other comprehensive income and other equity changes beside
net profit other comprehensive income and profit distribution shall be transferred to current period investment gain.
(4) Disposal of subsidiaries
1) General disposal method
In the reporting period if the Company disposed a subsidiary or business the subsidiary’s revenue expenses profit and
cash flows from the beginning of the period to the disposal date would be included in consolidated financial statements; the
cash flow of the subsidiary or business from the beginning of the period to the date of disposal is included in the
consolidated cash flow statement.When the control right to the investee is lost due to disposal of partial equity investment or other reasons the Company
remeasures residual equity investment after the disposal at its fair value on the date of losing the control right. The
difference between the sum of the consideration acquired from disposal of equity and the fair value of residual equity minus
the portion of net assets of the original subsidiary as continually calculated from the date of purchase or date of combination
at the original shareholding ratio and the goodwill is included in the investment income in the current period of losing the
control right. A gain or loss is recognized in the current period and is calculated by the aggregate of consideration received
in disposal and the fair value of remaining part of the equity investment deducting the share of net assets in proportion to
previous shareholding percentage in the former subsidiary since acquisition date and the goodwill.
2) Disposal of subsidiary through multiple steps
In the event that the Company losses control over a subsidiary through multiple transactions if one or more conditions
below are fulfilled it shall be treated as one-package transaction:
A. the transactions were entered into at the same time or by considering each other’s influence;
B. a complete business result can only be achieved by combining all these transactions together;
C. the performing of one transaction is depended on at least one other transaction;
D. a transaction is not economical if it is considered stand along but it will become economical if it is considered in
combination with other transactions.If the various transactions disposing the investment on the subsidiary's equity until losing control power are package deals
various transactions undergo accounting treatment as a transaction of disposing the subsidiary and losing control power;
however before losing control power the difference between every disposal amount and the share of the subsidiary's net
65FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
assets enjoyed corresponding to disposal of investment is recognized as other comprehensive income in the consolidated
financial statements and is included in the current profit and loss corresponding to loss of control power.If disposal of the equity investment in the subsidiary until the loss of control does not belong to one-package transaction
before the loss of control the accounting treatment shall be carried out in accordance with the relevant policies for partial
disposal of the equity investment in the subsidiary without losing control; when the control is lost accounting treatment shall
be carried out according to the general treatment method of disposal of subsidiaries.
(5) Purchase of the minority shareholders’ equity of subsidiaries
The difference between the long term equity investment newly acquired resulted from purchase of minority equity and the
share of the net asset continuously calculated commencing from the date of purchase (or date of consolidation) enjoyable
by the subsidiary shall be used to adjust the capital stock premium in the capital reserve. In case the capital stock premium
in the capital reserve is not enough for writing-down the retained earnings shall be adjusted.
(6) Partial disposal of equity investment in subsidiary without loss of control
The difference between the disposal income obtained from the partial disposal of the long-term equity investment in a
subsidiary without loss of control and the corresponding portion of the subsidiary's net assets calculated from the
acquisition date or the combination date corresponding to the disposal of the long-term equity investment is used to adjust
the share premium in the capital reserve in the consolidated balance sheet and adjust the retained earnings if the capital
stock premium in the capital reserve is insufficient to offset.
7. Classification of joint venture arrangements and accounting treatment method of joint management
(1) Classification of Joint Venture Arrangement
The Company classifies joint venture arrangements into joint operations and joint ventures based on the structure legal
form terms and conditions in the arrangement and other related facts.Joint operations means joint arrangement that does not realized through independent entity. Joint arrangement that
realized through independent entity is normally recognized as joint venture but it also can be classified as joint operation if
clear evidence showed that one of the following condition is met:
The legal form of an joint arrangement showed that the joint parties enjoyed rights over related assets and undertake
liability respectively.The contract showed that the joint parties enjoyed rights over related assets and undertake liability respectively.Other facts and situation indicated that the joint parties enjoyed rights over related assets and undertake liability
respectively. If the joint venture party enjoys substantially all of the output associated with the joint arrangement and the
settlement of the liabilities in the arrangement continues to depend on the joint venture party's support.
(2) Accounting treatment to joint operation
The Company confirms the following items related to the Company in the portion of interests in joint operation and
conducts accounting treatment in accordance with the relevant accounting standards for enterprises:
to recognize the assets held separately and recognize the assets held jointly by their shares;
to recognize the liabilities borne individually and the liabilities borne jointly according to their share;
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to recognize the income generated from the sale of its share of joint management output;
to recognize the income generated by the joint operation from the sale of output according to its portion;
to recognize the expenses incurred separately and recognize the expenses incurred in joint management according to
their share.Before the Company delivers or sells assets to the joint operation (except the assets constituting business) or the joint
operation sells such assets to a third party the Company only confirms the parts in the profit and loss arising from such
transaction and belonging to other participants of the joint operation. If occurrence of such assets is in conformity with the
impairment loss as stated in the Accounting Standards for Business Enterprises No. 8 - Impairment of Assets the
Company fully confirms the loss;
Before the Company sells an asset in the joint operation etc. (except the assets constituting business) to a third party the
Company only confirms the part in the profit and loss arising from such transaction and belonging to other participants of
the joint operation. If occurrence of purchase of an asset is in conformity with the impairment loss as stated in the
Accounting Standards for Business Enterprises No. 8 - Impairment of Assets the Company fully recognizes this part of loss
based on the portion the Company should take.The Company does not enjoy joint control to joint operation. If the Company enjoys joint operation’s asset and undertaking
related liabilities the accounting treatment is the same. Otherwise it shall be accounted for based on accounting
standards.
8. Cash and cash equivalents
The term “cash” refers to cash on hand and deposits that are readily available for payment in preparation of the cash flow
statement. The term “cash equivalents” refers to short-term (generally due within 3 months from the purchase date) and
highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk
of change in value.
9. Foreign currency transactions and translation of foreign currency statements
(1) Foreign Currency Transactions
In the initial recognition of foreign currency transactions the spot exchange rate on the transaction date is used as the rate
to translate the foreign currency amount into Renminbi for bookkeeping.On the date of balance sheet the foreign currency monetary items are translated based on the spot rate as at the date of
balance sheet and the balance of exchange arising therefrom is counted to the current gains and losses except the balance
of exchange arising from the special foreign currency borrowings in connection with the assets satisfying the capitalization
conditions which is treated based on the principle of capitalization of borrowing expenses The foreign currency
non-monetary items measured at historical cost shall still be translated at the spot exchange rate on the date of transaction
without change of the amount of the functional currency for bookkeeping.The non-monetary items in foreign currency measured at fair value are translated at the exchange rate on the date of
recognizing fair value and the difference between the amount in bookkeeping base currency and the previous amount in
bookkeeping base currency after translated is treated as change of fair value (including change of exchange rate) and
included in the current profits and losses or recognized as other comprehensive incomes.
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(2) Translation of Foreign Currency Financial Statements
The asset and liability items in the balance sheet are translated by means of the spot rate of the balance sheet; all the other
owner's equity type items with the exception of "retained earnings" item are translated by means of the spot rate of the day
when the transaction takes place. The items of incomes and expenses in the profit statement are translated at the current
average exchange rate on the transaction occurring date. The foreign currency financial statement translation difference
arising from the above conversion is counted to the other comprehensive income.In disposal of overseas business the translation difference of the foreign currency financial statements related to the
foreign business listed in other comprehensive income items in the balance sheet is transferred from the other
comprehensive income items to the current profit and loss; in case the proportion of the equity in the overseas business
held by the Company drops due to disposal of partial equity investment or other reason but the control power over the
overseas business has not lost the translation difference of the foreign currency statements in connection with the
disposed part of the overseas business shall be attributable to the minority shareholders’ equity instead of being transferred
into the current profit and loss. When the disposal of overseas operation is involved with the partial equity of a joint venture
or a cooperative enterprise the translated difference of foreign currency statements related to the overseas operation is
transferred at the ratio of disposing the overseas operation into the current profits and losses from disposal.
10. Financial instruments
A financial asset or financial liability is recognized when the Company becomes a party of financial instrument contract.The effective interest rate method refers to the method for calculating the amortized cost of financial assets or financial
liabilities and apportioning the interest income or interest expense of each period into each accounting period.Effective interest rate refers to such interest rate with which the future cash flow of any financial asset or financial liability
in the expected period of existence is discounted to the current book value of such financial asset or financial liability. When
determining the effective interest rate the future cash flow shall be predicted on the basis of taking into account all the
contractual stipulations (Such as prepayment rollover call option or other similar options) concerning the financial asset or
financial liability but the future credit losses shall not be taken into account.Amortized cost of financial assets or financial liabilities is the initial recognition amount deduct principal and add or less
accumulated amortization to the difference between initial recognition and the amount at maturity and less accumulated
loss provision (for financial assets only).
(1) Classification confirmation and measurement of financial assets
Financial assets are classified into the following three categories depending on the Company’s business mode of managing
financial assets and cash flow characteristics of financial assets:
A. Financial assets measured at amortized cost.B. Financial asset that is measured at fair value and whose change is included in other comprehensive income.C. The financial asset measured at fair values with the change counted to the current profit and loss.Financial assets are measured at their fair value at the time of initial recognition but if the accounts receivable or notes
receivable generated from the sale of commodities or provision of services do not contain significant financing elements or
the financing elements not exceeding one year are not considered the initial measurement shall be made according to the
transaction price.
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For the financial assets measured at fair value with the change counted to the current profits and losses the relevant
transaction expenses are directly included in the current profit and loss; the relevant transaction expenses for other
categories of financial assets are counted to the amount of the initial recognition.The subsequent measurement of financial assets depends on their classification and all affected relevant financial assets
shall be reclassified if and only if the Company changes its business model for managing financial assets.
1) Classified as financial assets measured based on the amortized cost
According to the contractual terms of the financial asset， the cash flow created on the specific date is exclusively forpayment of the principal and the interest based on the outstanding amount of the principal，while if the business model ofmanaging the financial asset is to take the collection of contractual cash flow as the goal the Company shall classify the
financial asset as a financial asset measured at amortized cost. Such financial assets include monetary fund notes
receivable accounts receivable and other receivables.The Company recognizes the interest income of such financial assets based on the effective interest rate method
subsequent measurement is carried out at amortized cost and the gain or loss arising from derecognition or modification
when impairment occurs shall be included in the current profit and loss. Except for the following circumstances the
Company calculates and determines interest income based on the book balance of financial assets multiplied by the actual
interest rate:
A. For purchased or originated credit-impaired financial assets the Company calculates and determines the interest
income from the initial recognition based on the amortized cost of the financial assets and the credit-adjusted effective
interest rate.B. For purchased or originated financial assets without credit impairment but become credit-impaired in the subsequent
period the Company calculates and determines the interest income based on the amortized cost and effective interest rate
of the financial asset in the subsequent period. If the financial instrument no longer has credit impairment due to the
improvement of its credit risk in the subsequent period the Company calculates and determines the interest income by
multiplying the actual interest rate by the book balance of the financial asset.
2) Classified as financial asset that is measured at fair value and whose change is included in other comprehensive
income.According to the contractual terms of the financial asset，the cash flow created on the specific date is exclusively forpayment of the principal and the interest based on the outstanding amount of the principal; while if the business model for
managing the financial asset is aimed at both collecting contractual cash flow and selling the financial asset the Company
classifies the financial asset as a financial asset measured at fair value whose change is included in other comprehensive
income.The Company recognizes interest income of such financial assets by the effective interest rate method. Except for interest
income impairment losses and exchange differences which are recognized as profit or loss for the current period other
changes in fair value are included in other comprehensive income. When the recognition of the said financial assets is
terminated the accumulated gains or losses previously included in other comprehensive income are transferred out from
other comprehensive income and included in the current profit and loss.
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Notes and accounts receivable measured at fair value whose change is included in other comprehensive income are
presented as receivables financing and other such financial assets are presented as other creditor's rights investments
where other debt investments that mature within one year as of the balance sheet date are reported as non-current assets
that mature within one year and other creditor's rights investments whose original maturity is within one year are presented
as other current assets.
3) Designated as financial asset measured at fair value and whose change is included in other comprehensive income.
At the initial recognition the Company may irrevocably designate non-trading equity instrument investments as financial
assets at fair value through other comprehensive income on the basis of individual financial assets.Changes in fair value of such financial assets are included in other comprehensive income and no provision for impairment
is required. When the recognition of the said financial assets is terminated the accumulated gains or losses previously
included in other comprehensive income are transferred out from other comprehensive income and included in the retained
earnings. During the period when the Company holds the investment in the equity instrument when the Company's right to
receive dividends has been established the economic benefits related to dividends are likely to flow into the Company and
the amount of dividends can be measured reliably dividend income is recognized and included in the current profit and loss.The Company represents such financial assets under other equity instrument investment items.An equity instrument investment that satisfies one of the following conditions is a financial asset measured at fair value and
its changes are included in the current profit and loss: the purpose of obtaining the financial asset is mainly for recent sales;
it is part of a centrally managed portfolio of identifiable financial assets and instruments at initial recognition and there is
objective evidence that there is a short-term profit model in the near future; it is a derivative instrument (with a derivative
instrument that meets the definition of a financial guarantee contract and is designated as an effective hedging instrument
exclusive).
4) The financial asset measured at fair value with the change counted to the current profit and loss.
Financial assets that do not meet the criteria for classification as financial assets measured at amortized cost or at fair value
whose change is concluded in other comprehensive income nor designated as financial assets measured at fair value
whose change is included in other comprehensive income are all classified as financial assets measured at fair value
whose change is included in the current profit and loss.The Company makes subsequent measurement of these financial assets at fair value and their profit or loss formed due to
change of fair value and the dividends and interests related to such financial assets are included in the current profits and
losses.The Company present the financial assets as financial asset held for trade other non-current financial assets.
5)The financial asset designated for measurement at fair value with the change counted to the current profit and loss.
At initial recognition in order to eliminate or significantly reduce the accounting mismatch can be eliminated or significantly
reduced the Company may irrevocably designate the financial assets as that measured at fair value with the change
counted to the current profit and loss based on the individual financial assets.
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If the hybrid contract includes one or more embedded derivatives and the main contract does not belong to the above
financial assets the Company may designate the whole as a financial instrument that is measured at fair value through
profit or loss except in the following cases:
A. Embedded derivatives do not materially change the cash flow of a hybrid contract.B. When it is first determined whether a similar hybrid contract requires a spin-off there is little need for analysis to make it
clear that the embedded derivatives it contains should not be split. If the prepayment right of the embedded loan allows the
holder to repay the loan in advance with an amount close to the amortized cost the prepayment right does not need to be
split.The Company makes subsequent measurement of these financial assets at fair value and their profit or loss formed due to
change of fair value and the dividends and interests related to such financial assets are included in the current profits and
losses.The Company present the financial assets as financial asset held for trade other non-current financial assets.
(2) Classification recognition and measurement of financial liabilities
The Company categorizes such financial instruments or their components as financial liabilities or equity instrument at the
initial recognition based on the contract terms for issuing such financial instruments and economical nature they have
reflected rather than solely on its legal form with the combination of the definition of financial liabilities and equity instrument.In the initial recognition financial liabilities are classified as the financial liabilities that are measured at fair value and whose
change is included in the current profits and losses other financial liabilities and derivative instrument designated as
effective hedging instrument.Financial liabilities are measured at fair value at the initial recognition time. For financial liabilities that are measured at fair
value and which change is included in the current profits and losses the relevant transaction expenses are directly included
in the current profits and losses; for other financial liabilities relevant transaction expenses are included in the initially
recognized amount.The successive measurement of financial liabilities depends on their classification:
1) The financial liabilities designated for measurement at fair value with the change counted to the current profit and loss.
Such financial liabilities include financial liabilities held for trade (including the derivative instruments belonging to financial
liabilities) and the financial liabilities measured at fair value with the change counted to the current profits and losses
directly designated at the initial recognition.The Company classifies financial liabilities that meet one of the following conditions: the purpose of assuming the relevant
financial liabilities is mainly for recent sale or repurchase; if they belong to part of the portfolio of identifiable financial
instruments under concentrated management and objective evidences showing that the Company has recently adopted
short-term profit making mode; they belong to a derivative instrument except the derivative instruments designated as and
being effective hedging instruments with the derivative instruments in compliance with financial guarantee contract
excluded. Financial liabilities held for trade (including the derivative instruments belonging to financial liabilities) are
71FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
measured at fair value subsequently and all fair value changes except for hedging accounting shall be included in current
period profit or loss.At initial recognition in order to provide more relevant accounting information the Company classifies financial liabilities
that meet one of the following conditions as financial liabilities designated at fair value through profit or loss (the designation
cannot be revoked once it is made) :
A. accounting mismatches can be eliminated or significantly reduced.B. according to the corporate risk management or investment strategy specified in the formal written documents the
financial liability portfolio or the financial asset and financial liability portfolio is managed and performance evaluated on the
basis of fair value and reported to key management personnel within the Company on this basis.When the Company initially recognizes a financial liability and designates it at fair value through profit or loss according to
stipulations of standards the changes in the fair value of the financial liability arising from changes in the company’s own
credit risk are included in other comprehensive income and other changes in fair value are recognized in profit or loss for
the period. However if the accounting causes or expands the accounting mismatch in profit or loss the entire gain or loss
of the financial liability (including the affected amount from changes in the company’s own credit risk) is included in the
current profit or loss.
2) Other financial liabilities
Except for the following items the Company classifies financial liabilities as financial liabilities measured at amortized cost.The effective interest method is adopted for such financial liabilities and the subsequent measurement is carried out
according to the amortized cost and the profit or losses arising from the derecognition or amortization are included in the
current profit and loss:
A. The financial liabilities designated for measurement at fair value with the change counted to the current profit and loss.B. The transfer of financial assets does not meet the conditions for derecognition or financial liabilities arising from the
continued involvement in the transferred financial assets.C. Financial guarantee contracts that are not in the first two categories of this article and loan commitments granted at a
rate lower than market interest rates and that are not in the first category of this article.A financial guarantee contract refers to a contract that requires the issuer to pay a specific amount to the contract holder
who has suffered losses when a specific debtor fails to repay the debt in accordance with the original or revised terms of the
liability instrument. For financial guarantee contracts that are not designated as financial liabilities measured at fair value
and whose changes are included in the current profit and loss the initial recognition shall be carried out at the higher of the
provision for loss and the balance after deducting the accumulated amortization during the guarantee period from the initial
recognition amount.
(3) Derecognition of financial assets and financial liabilities
If a financial asset meets one of the following conditions it shall be derecognized:
A. The contractual right to receive the cash flow of the financial asset is terminated.
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B. The contractual right to receive the cash flow of the financial asset is terminated.Conditions for derecognition of financial liabilities
If the current obligation of a financial liability (or a part thereof) has been discharged the financial liability (or such part of
financial liability) is derecognized.When the Company and the lender sign an agreement to replace the original financial liability with a new financial liability
and the new financial liability is substantially different from the original financial liability the original financial liability is
derecognized and a new financial liability is recognized. The difference between the carrying amount and the consideration
paid (including the transferred non-cash assets or liabilities assumed) is recognized in profit or loss.If the Company repurchases part of the financial liabilities the carrying amount of the financial liabilities as a whole is
allocated based on the proportion of the fair value of the continuing recognition portion and the derecognition portion on the
repurchase date. The difference between the carrying amount assigned to the derecognition portion and the consideration
paid (including the transferred non-cash assets or liabilities assumed) shall be included in the current profit or loss.
(4) Recognition basis and measurement method for transfer of financial assets
In the event of transfer of financial assets the Company assesses the extent to which it retains the risks and rewards of
ownership of the financial assets and treats them in the following cases:
A. If almost all risks and rewards of ownership of financial assets are transferred the financial assets are derecognized and
the rights and obligations arising from or retained in the transfer are separately recognized as assets or liabilities.B. If almost all the risks and rewards of ownership of financial assets are retained the financial assets shall continue to be
recognized.C. If there is neither transfer nor retention of almost all risks and rewards of ownership of financial assets (i.e. other than (1)
and (2) of this article) then depending on whether or not they retain control over financial assets:
A. If the control of the financial asset is not retained the financial asset shall be derecognized and the rights and
obligations arising or retained during 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 be continuously recognized
according to the degree of its continued involvement in the transferred financial assets and the relevant liabilities shall be
recognized accordingly. The degree of continued involvement in the transferred financial assets refers to the degree to
which the Company undertakes the risks or rewards of changes in the value of the transferred financial assets.When judging whether the transfer of financial assets meets the above conditions for derecognition of financial assets the
principle of substance over form is adopted. The Company distinguishes the transfer of financial assets into overall transfer
and partial transfer of financial assets.If the overall transfer of financial assets meets the conditions for termination of recognition the difference between the
following two amounts shall be included in the current profit and loss:
73FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
A. The carrying amount of the transferred financial assets on the date of derecognition.B. The sum of the consideration received in respect of the transfer of financial assets and the amount corresponding to the
derecognized portion in the accumulated changes in the fair value originally and directly recognized in other comprehensive
income (the financial assets involved in the transfer are measured at fair value through other comprehensive income).C. If the transfer of partial financial assets while the part to be transferred overally satisfy the conditions of derecognition
the entire book value of the transferred financial asset shall between the portion derecognized and the portion not
derecognized (in such a case the retained service assets shall be deemed to be part of the continued recognition of
financial assets) be apportioned according to their respective relative fair value and the difference between the amounts of
the following 2 items shall be included into the profits and losses of the current period :
A. The carrying amount of the portion derecognized on the date of derecognition.B. The sum of the consideration received in respect of the derecognition of the financial assets and the amount
corresponding to the derecognized portion in the accumulated changes in the fair value originally and directly recognized in
other comprehensive income (the financial assets involved in the transfer are measured at fair value through other
comprehensive income).If the transfer of financial assets does not satisfy the conditions for termination of recognition continue to recognize the
financial asset and the received consideration is recognized as a financial liability.
(5) The method of determining the fair value of financial assets and financial liabilities
For the financial assets or financial liabilities existing in the active market the fair value is determined by the quotation in
the active market unless there is a restricted period for the financial asset itself. For a financial asset with restricted sales of
the asset itself it is determined according to the quotation in the active market after 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 within a
specified period. The quotation in the active market includes the quotation that is readily and regularly available from
exchanges dealers brokers industry groups pricing agencies or regulators etc. for the relevant assets or liabilities and
are representative of actual and frequently occurring markets on an arm's length basis trade.For the initially acquired or derived financial assets or assumed financial liabilities the market transaction price is used as
the basis for determining their fair value.For financial assets or financial liabilities not existing in the active market the fair value is determined using valuation
techniques. At the time of valuation the Bank adopts valuation techniques that are applicable under the current
circumstances and have sufficient data and other information to support and the selection is consistent with the
characteristics of the assets or liabilities considered by market participants in the transactions of relevant assets or liabilities
and it takes priority to use the relevant observable input value as far as possible. When the relevant observable input value
cannot be obtained or it is not feasible to obtain the unobservable input value is used.
(6) Impairment of financial instruments
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Based on the expected credit losses the Company assesses the expected credit losses of the financial assets measured at
amortized cost and financial assets at fair value through other comprehensive income lease receivables contract assets
loan commitment and financial liabilities that are not measured at fair value through profit or loss and financial guarantee
contract etc. and makes impairment accounting and recognizes loss provisions.Expected credit loss refers to the weighted average of the credit losses of financial instruments based on the risk of default.Credit loss refers to the difference between all contractual cash flows receivable under the contract and all cash flows
expected to be received by the Company discounted at the original effective interest rate that is the present value of all
cash shortages. Where for the purchased or originated credit-impaired financial assets the Company discounts based on
the credit-adjusted effective interest rate according to the credit of the financial assets.For accounts receivable contract assets and lease receivables the Company shall always measure the loss allowance for
them at an amount equal to the lifetime expected credit losses.For financial assets that have been purchased or generated with credit impairment loss provision is recognized only for the
cumulative changes in lifetime expected credit losses after the initial recognition on the balance sheet date. On each
balance sheet date the amount of changes in lifetime expected credit losses is included in profit or loss as an impairment
loss or gain. Even if the lifetime expected credit loss determined on the balance sheet date is less than the expected credit
loss reflected in the estimated cash flow at the initial recognition the positive change in expected credit loss is also
recognized as an impairment gain.Except for the provision for loss of financial instruments in item (3) of this article the Company assesses whether the credit
risk of the relevant financial instruments has increased significantly since the initial recognition on each balance sheet date
and separately measures its loss provision recognizes expected credit loss and its changes based on the following
circumstances：
A. If the credit risk of the financial instruments has increased significantly since the initial recognition the loss provision is
measured at the amount equivalent to the lifetime expected credit loss of the financial instruments regardless of whether
the basis the Company assesses the credit losses is on individual financial instrument or a combination of financial
instruments and the increase or reversal of the loss provision resulting therefrom should be included in the current profit or
loss as an impairment loss or gain
B. If the credit risk of the financial instruments has not increased significantly since the initial recognition the loss provision
is measured at the amount equivalent to the expected credit loss of the financial instruments in the next 12 months
regardless of whether the basis the Company assesses the credit loss is on individual financial instrument or the
combination of financial instruments and the increase or reversal of the loss provision resulting therefrom shall be included
in the current profit or loss as an impairment loss or gain.C. For financial instruments in the third stage the Company measures loss provision on the basis of life-time expected
credit loss and calculating interest income according to their book balance minus the impairment provision and the actual
interest rate.Incremental or reversal of credit loss provision shall be included in current profit or loss as impairment loss or gain. Except
for financial asset at fair value through other comprehensive income credit loss provision is to offset the carrying amount of
75FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
financial assets. For financial assets at fair value through other comprehensive income the credit loss provision is
recognized in other comprehensive income and will not offset the financial asset’s carrying amount in balance sheet.In the previous fiscal period the loss provision was measured at an amount equivalent to the expected credit loss during
the entire duration of the financial instrument but on the current balance sheet date the financial instrument is no longer in
a situation where the credit risk has significantly increased since the initial recognition; if on the current balance sheet date
the loss provision of the financial instrument was measured at the amount equivalent to the expected credit loss in the next
12 months and the resulting loss provision was reversed as the impairment gain and included in the current profit and loss.
1) Assessment of significant increase of credit risk
By comparing the default risk of financial instruments on balance sheet day with that on initial recognition day the
Company determines the relative change of default risk of financial instruments during the expected life of financial
instruments to evaluate whether the credit risk of financial instruments has increased significantly since the initial
recognition. For financial guarantee contracts when applying the provisions on impairment of financial instruments the
Company takes the date when the Company becomes the party that has made the irrevocable commitment as the initial
recognition date.To determine whether credit risk has increased significantly since the initial recognition factors considered by the Company
includes:
A. Whether there is serious deterioration of the debtor’s operating results that have occurred or are expected to occur;
B. Changes in the existing or anticipated technological market economic or technical environment will have a significant
negative impact on the debtor’s repayment capacity;
C. Whether there have been significant changes in the value of collateral used as collateral for the debt or the quality of
guarantees or credit enhancements provided by third parties that are expected to reduce the debtor's economic incentive to
repay within the contractual terms or affect the probability of default;
D. Whether the expected performance and repayment of debtor changes significantly;
E. Whether the Company changed the way of managing financial assets etc.On the balance sheet date if the Company assesses that the financial instrument only has lower level of credit risk the
Company assumes that the credit risk associated with the financial instrument does not increased after the initial
recognition. If the default rate of a financial instrument is low and the debtor’s ability to fulfill its cash flow liability is strong
the financial instrument will be regarded with lower credit risk even if there will be adverse changed in economic and
operating environment in long-term which may not necessarily decrease the debtor’s ability of fulfilling its cash flow
liabilities.
2) Financial assets with credit impairment already incurred
When one or more events that have an adverse effect on the expected future cash flow of a financial asset occur the
financial asset becomes a financial asset that has been credit-impaired. Evidence of credit impairment of financial assets
includes the following observable information:
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A. The issuer or debtor has experienced major financial difficulty;
B. The debtor has violated the contract such as failure in or late payment of the interest or the principal;
C. The Creditor out of economic or contractual considerations related to the debtor’s financial difficulties gives the debtor
concessions that the Group shall never make under any other circumstances;
D. The debtor is likely to go bankrupt or carry out other financial restructuring;
E. The issuer or debtor’s financial difficulties caused the disappearance of the active market for the financial asset.F. Purchase or originate a financial asset at a substantial discount that reflects the fact that a credit loss has occurred;
Credit-impairment of a financial asset may be caused by the combined action of multiple events not necessarily by an
individually identifiable event.
3) Determining expected credit loss (ECL)
The Company evaluates ECL based on single or portfolio of financial instrument. When evaluating ECL the Company
considers past events current situation and future economic condition.The Company categorizes financial instrument into different portfolios based on common credit risk characteristics.Common credit risk characteristics includes: types of financial instruments aging portfolio settlement period debtor’s
industries etc. Refer to accounting policies of financial instruments for standard for single evaluation and credit risk
characteristics.The Company uses the following way to determine the ECL of financial instruments:
A. For financial assets credit loss is the present value of difference between all contractual cash flows receivable from the
contract and all cash flows expected to be received by the Company.B. For lease receivable credit loss is the present value of difference between all contractual cash flows receivable from the
contract and all cash flows expected to be received by the Company.C. For financial guarantee contract credit loss is the present value of expected payment amount due to credit losses
happened to the owner of the contract and less any amount that the Company expected to receive from the contract owner
debtor or other parties.D. For financial assets that already impaired on balance sheet date but not impaired when purchasing the credit loss is the
difference of carrying amount and present value of future cash flows discounted at original effective interest rate.Factors that the Company measures ECL of financial instrument includes: assessing a series of possible results and to
determine a weighted average amount without bias; time value of money; information of past event current situation and
future economic condition forecast that can be obtained without paying extra cost or efforts on balance sheet date.
4) Write off
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The Company no longer reasonably expects that the contractual cash flow of the financial asset can be recovered wholly or
partially it will directly write down the book balance of the financial asset. This write-down constitutes the derecognition of
related financial assets.
(7) Offset of financial assets and financial liabilities
Financial assets and financial liabilities are presented in the balance sheet respectively and are not offset with each other.However the net value after offset is presented in the balance sheet when the following conditions are satisfied:
A. The Company has the legal right to offset the recognised amount and such right is exercisable;
B. The Company plans to settle by net amount or realize the financial assets and repay the financial liabilities at the same
time.
11. Notes receivable
For the determination method and accounting treatment method of the expected credit loss of the Company's notes
receivable please refer to Note V. 10
If the Company has sufficient evidence to evaluate the ECL of notes receivable on single basis it will be assessed on single
basis.If there is not sufficient evidence to evaluate the ECL on single basis the Company will make judgment based on historical
loss experience current situation and future economic situation and classifying the bill receivable into different portfolios.The basis for portfolios is determined as follows:
Portfolio Description The basis for portfolios is determined as follows: Provision method
Risk-free bank The issuer has higher level of credit rating and no default in past and Referencing historical impairment experience and taking into
acceptance portfolio has strong ability to fulfill its contractual cash follow obligation consideration of current situation and estimation of future conditions
Notes receivables with same aging have similar credit risk Provision based on the ECL checklist of aging against the loss rate
Business acceptance note
characteristics throughout the duration
12. Accounts receivable
For the determination method and accounting treatment method of the expected credit loss of the Company's accounts
receivable please refer to Note V. 10
If the Company has sufficient evidence to evaluate the ECL of accounts receivable on single basis it will be assessed on
single basis.If there is not sufficient evidence to evaluate the ECL on single basis the Company will make judgment based on historical
loss experience current situation and future economic situation and classifying the accounts receivable into different
portfolios. The basis for portfolios is determined as follows:
Portfolio Description The basis for portfolios is determined as follows: Provision method
Receivables for related parties in scope of Account receivables for related parties in scope of consolidation have Referencing historical impairment experience and
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consolidation similar credit risk characteristics taking into consideration of current situation and
estimation of future conditions
Accounts receivables from other Notes receivables with same aging have similar credit risk Provision based on the ECL checklist of aging against
parties characteristics the loss rate throughout the duration
13. Financing with accounts receivable
Inapplicable
14. Other receivables
Method for determination and accounting treatment of the expected credit loss of other receivables
For the determination method and accounting treatment method of the expected credit loss of the Company's other
receivables please refer to Note V. 10
If the Company has sufficient evidence to evaluate the ECL of other receivables on single basis it will be assessed on
single basis.If there is not sufficient evidence to evaluate the ECL on single basis the Company will make judgment based on historical
loss experience current situation and future economic situation and classifying the other receivables into different
portfolios. The basis for portfolios is determined as follows:
Portfolio Description The basis for portfolios is determined as follows: Provision method
The portfolio has similar credit risk characteristics
Receivables of down payment and Provision based on the ECL checklist of aging against the loss rate
based on the business nature down payment and
guarantee throughout the duration
guarantee
The portfolio has similar credit risk characteristics Referencing historical impairment experience and taking into
Petty cash for employees
based on the business nature consideration of current situation and estimation of future conditions
Social security payment paid on-behalf of The portfolio has similar credit risk characteristics Referencing historical impairment experience and taking into
employees based on the business nature consideration of current situation and estimation of future conditions
Receivables for related parties in scope of Account receivables for related parties in scope of Referencing historical impairment experience and taking into
consolidation consolidation have similar credit risk characteristics consideration of current situation and estimation of future conditions
Notes receivables with same aging have similar credit Provision based on the ECL checklist of aging against the loss rate
Portfolio of other receivables
risk characteristics throughout the duration
15. Inventories
(1) Classification of Inventories
The Company’s inventories refer to the finished products or commodities held for sale products in process and the
materials and supplies consumed in process of production or rendering of services etc. in the Company’s daily activities
which are classified into three categories including raw materials products-in-process and commodity stocks. which are
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classified into three categories Inventories mainly include raw materials products-in-processfinished products (commodity
stocks) etc.
(2) Valuation method of inventories
When inventory is acquired it is initially measured at cost including procurement costs processing costs and other costs.Raw materials and merchandise inventory are priced respectively according to the weighted average (except for branded
watches) specific identification (for branded watches) at the time of delivery.
(3) Basis for determining net realizable value of inventories and method for providing reserve for price falling of
inventories
After the inventory is thoroughly inspected at the end of the period the provision shall be provided or adjusted at the lower
of the cost of the inventory and its net realizable value. The net realizable value of inventory of goods directly used for sale
such as finished goods stocked goods and materials for sale in the normal production and operation process is
determined by the estimated selling price of the inventory minus the estimated selling expenses and related taxes; net
realizable value of inventory of materials that need to be processed is determined based on the estimated selling price of
the finished products produced minus the estimated cost till completion estimated selling expenses and related taxes and
fees in the normal production and operation process; the net realizable value of the inventory held for the execution of a
sales contract or labour contract is calculated on the basis of the contract price. If the quantity of the inventory held exceeds
the quantity ordered by the sales contract the net realizable value of the excess inventory is calculated based on the
general sales price.The provision is accrued according to the individual inventory project at the end of the period; but for a large number of
inventories with lower unit price the provision is accrued according to the category of inventory; for those related to the
product series produced and sold in the same region have the same or similar end use or purpose and that are difficult to
measure separately from other projects they are combined for provision for inventory depreciation
If the influencing factors of the write-down of inventory value have disappeared the amount of write down will be restored
and will be reversed within the amount of the provision for decline in value of the inventory that has been accrued. The
amount of the reversal is included in the current profit or loss
(4) Inventory count system
The Company maintains a perpetual inventory system.
(5) Amortization methods of low-value consumables and packaging materials
A. Low cost and short lived articles are amortized on once-and-for-all basis.B. Packaging materials are amortized on once-and-for-all basis.
16. Contract assets
The Company has the right to receive the consideration for the transfer of goods to the customers. If the right depends on
factors other than the passage of time it is recognized as a contract asset. If the Company has the right (only depends on
passage of time) to receive consideration from client accounts receivable shall be recognized.
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For the determination method and accounting treatment method of the expected credit loss of the Company's contract
assets please refer to Note V. 10.
17. Contract cost
If the cost incurred to fulfill the contract does not fall within the scope of other accounting standards for enterprises other
than the standards for revenue and meets the following conditions at the same time the Company recognizes it as the
contract performance cost as an asset:
A. The cost is directly related to a current or anticipated contract including direct labor direct materials manufacturing
expenses (or similar expenses) costs clearly borne by the customer and other costs incurred solely due to the contract;
B. The cost has increased the resource the Company shall use to fulfill its performance obligation in the future.C. The cost is expected to be recoverable.The asset is presented in inventory or other non-current assets based on whether the amortization period at initial
recognition exceeds one normal operating cycle.
(1) Contract acquisition cost
If the incremental cost incurred to the Company for obtaining the contract is expected to be recoverable it is recognized as
an asset as the cost of obtaining the contract. The incremental cost refers to the cost that no cost may incur if the Company
does not obtain the contract (such as sales commission etc.) If the amortization period does not exceed one year it shall
be included in the current profit and loss when it incurs.
(2) Amortization of contract cost
The above assets related to contract costs are recognized on the same basis as the income from goods or services related
to the asset and are amortized at the time when the performance obligations are performed or in accordance with the
progress of the performance obligations and are included in the current profit and loss.
(3) Impairment of contract cost
For the above-mentioned assets related to contract costs if the book value is higher than the difference between the
remaining consideration expected to be obtained by the Company due to the transfer of commodities related to the assets
and the estimated cost to incur for the transfer of the related commodities the excess shall be provided for impairment
and recognized as asset impairment loss.After provision for the impairment ff the factors of impairment in the previous period change afterward so that the
difference of the above two items is higher than the book value of the asset the original provision for asset impairment
should be reversed and included in the current profit and loss but the book value of the asset after the reversal should not
exceed the book value of the asset on the reversal date if no provision for impairment is made.
18. Held-for-sale assets
Inapplicable
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19. Equity investment
Inapplicable
20. Other equity investment
Inapplicable
21. Long term accounts receivable
Inapplicable
22. Long-term equity investments
(1) Determination of the initial investment cost
A. For the long-term equity investment formed by business combination the specific accounting policies are detailed in the
accounting treatment of business combination under common control and not under common control as set out in this Note
V.5.B. Long-term equity investment obtained by other means
For long-term equity investments obtained by paying cash the actual purchase price paid shall be used as the initial
investment cost. The initial investment cost includes expenses directly related to the acquisition of long-term equity
investments taxes and other necessary expenses.The initial investment cost of the long-term equity investment obtained by issuing equity securities is the fair value of the
issued equity securities; the transaction cost incurred in the issuance or acquisition of its own equity instruments is
deducted from equity if it is directly attributable to equity transactions.Under the premise that the non-monetary asset exchange has the commercial substance and the fair value of the assets
received or surrendered can be reliably measured the initial investment cost of the long-term equity investment exchanged
for non-monetary assets is determined based on the fair value of the assets exchanged and relevant taxes payable unless
there is conclusive evidence that the fair value of the assets transferred is more reliable; for the exchange of non-monetary
asset that does not meet the above premise the initial investment cost of long-term equity investment is the carrying
amount of the assets exchanged and the related taxes and fees payable.The initial investment cost of a long-term equity investment obtained through debt restructuring includes the fair value of the
waived debt taxes that can be directly attributable to the asset and other costs.
(2)Subsequent measurement and profit and loss recognition
A. Cost method
The long-term equity investment that the Company can control over the investee is accounted for using the cost method
and the cost of the long-term equity investment is adjusted by adding or recovering the investment according to the initial
investment cost.
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Except for the actual payment or the cash dividends or profits included in the consideration that have been announced but
not yet paid at the time of acquiring the investment the Company recognizes the current investment income according to its
share of cash dividends or profits declared to be distributed by the investee.B. Equity method
The Company’s long-term equity investments in associates and joint ventures are accounted for using the equity method
and some of the equity investments in associates that are indirectly held by venture capital institutions mutual funds trust
companies or similar entities including investment-linked insurance funds are measured at fair value through profit or loss.When the initial investment cost of a long-term equity investment is greater than the investment the initial investment cost
of the long-term equity investment shall not be adjusted by the difference between the fair value of the identifiable net
assets of the investee; if the initial investment cost is less than the investment the difference between the fair value of the
identifiable net assets of the investee should be included in the current profit or loss.After the Company has acquired the long term equity investment the net gains and losses realized by the investee and
the share of the other comprehensive income enjoyable or sharable should be respectively used to recognize the return on
investment and other comprehensive income and at the same time the book value of the long term equity investment is
adjusted; according to the profit announced for distribution by the investee or the part of the cash dividend enjoyable upon
calculation the book value of the long term equity investment is reduced correspondingly. For other change in the net profit
and loss other comprehensive income and owner's equity other than the profit distribution the book value of the long term
equity investment is adjusted and counted to the capital reserve.In determining the net profit and loss in the investee enjoyable with the fair value of various identifiable assets etc. in the
investee when the investment is acquired as the base the net profit of the investee is recognized after adjustment. For the
transactions between the Company and its associates or joint ventures the part calculated based on the proportion of the
unrealized internal transaction gains and losses attributable to the Company shall be offset and the gains and losses on the
investment shall be recognized on this basis.When the Company recognizes the losses incurred by the investee that it should bear it shall deal with it in the following
order: Firstly offset the carrying amount of the long-term equity investment. Secondly if the carrying amount of the
long-term equity investment is not enough to be offset the investment loss will continue to be recognized to the extent of
carrying amount of other long-term equity that virtually constitutes a net investment in the investee and the carrying amount
of the long-term receivables is offset. Finally after the above-mentioned treatment if the enterprise still bears additional
obligations in accordance with the investment contract or agreement the projected liabilities are recognized according to
the estimated obligations and included in the current investment losses.If the investee realizes profit in the future period after deducting the unrecognized loss share and the reduction of book
balance of the recognized projected liabilities and recovery of other long-term equity that virtually constitutes a net
investment in the investee and carrying amount of long-term equity investment as opposite to the order above the
Company shall restore the investment income.
(3) Conversion of accounting methods for long-term equity investment
1) Fair value measurement to equity method accounting
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If the equity investment originally held by the Company that does not have control joint control or significant influence on
the investee which is accounted for according to the recognition and measurement criteria of financial instruments can
exert significant influence on the investee or jointly control but does not constitute control over it due to additional
investment and otherwise its initial investment cost shall be the sum of the fair value of the equity investment originally heldin accordance with the “Accounting Standards for Business Enterprises No. 22 – Recognition and Measurement ofFinancial Instruments” and new investment cost after being accounted for under the equity method.If the initial investment cost accounted for under the equity method is less than the fair value share of the identifiable net
assets of the investee on the additional investment date determined by the new shareholding ratio after the additional
investment the carrying amount of the long-term equity investment is adjusted and included in the current non-operating
income.
2) Fair value measurement or equity method accounting to cost method accounting
If the equity investment originally held by the Company that does not have control joint control or significant influence on
the investee and which is accounted for in accordance with the financial instrument recognition and measurement criteria
or the long-term equity investment originally held in associates or joint venture can exercise control over the investee not
under common control due to additional investment or otherwise in the preparation of individual financial statements the
sum of the carrying amount of the equity investment originally held plus the new investment cost shall be regarded as the
initial investment cost after being accounted for under the cost method.The other comprehensive income recognized by the equity method in respect of the equity investment originally held before
the purchase date is accounted for on the same basis as the investee directly disposes of the relevant assets or liabilities
when the investment is disposed of.If the equity investment held before the purchase date is accounted for in accordance with the relevant provisions of the
“Accounting Standards for Business Enterprises No. 22 – Recognition and Measurement of Financial Instruments” the
cumulative fair value changes originally included in other comprehensive income are transferred to current profit or loss
when the cost method is adopted.
3) Equity method accounting to fair value measurement
If the Company loses joint control or significant influence on the investee due to the disposal of part of the equity investmentor otherwise the remaining equity after disposal shall be accounted for according to the “Accounting Standards forBusiness Enterprises No. 22 – Recognition and Measurement of Financial Instruments”. The difference between the fair
value and the carrying amount on the date of losing joint control or significant impact is recognized in profit or loss.The other comprehensive income recognized in respect of the original equity investment using the equity method is
accounted for on the same basis as the investee directly disposes of the relevant asset.A. Cost method to equity method
Where the Company loses control over the investee due to the disposal of part of the equity investment etc. in the
preparation of individual financial statements if the remaining equity after disposal can exercise joint control or significant
influence on the investee the equity method is adopted for accounting and the remaining equity is deemed to be adjusted
under the equity method when it is acquired.
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B. Cost method to fair value measurement
Where the Company loses control over the investee due to the disposal of part of the equity investment etc. in the
preparation of individual financial statements if the remaining equity after disposal cannot jointly control or exert significantinfluence on the investee the relevant provisions of the “Accounting Standards for Business Enterprises No. 22 –Recognition and Measurement of Financial Instruments” are adopted. The difference between the fair value and the
carrying amount on the date of loss of control is recognized in profit or loss for the current period.
(4) Disposal of long-term equity investment
For the disposal of long-term equity investment the difference between the carrying amount and the actual purchase price
shall be included in the current profit or loss. For the long-term equity investment accounted for using the equity method
when the investment is disposed of the part that is originally included in the other comprehensive income is accounted for
in the same proportion based on the same basis as the investee directly disposes of the relevant assets or liabilities.If the terms conditions and economic impact of each transaction on disposal of the equity investment in a subsidiary satisfy
one or more of the following cases the multiple transactions are treated as a package transaction:
A. the transactions were entered into at the same time or by considering each other’s influence;
B. a complete business result can only be achieved by combining all these transactions together;
C. the performing of one transaction is depended on at least one other transaction;
D. a transaction is not economical if it is considered stand along but it will become economical if it is considered in
combination with other transactions.Where the loss of control over the original subsidiary due to disposal of part of the equity investment or otherwise which is
not a package transaction the individual financial statements and consolidated financial statements shall be classified for
relevant accounting treatment:
1) In the individual financial statements the difference between the carrying amount of the disposed equity and the actual
purchase price is included in the current profit or loss. If the remaining equity after disposal can exert joint control or
significant influence on the investee it shall be accounted for under the equity method and the residual equity shall be
deemed to be adjusted by equity method when it is acquired; if the remaining equity after disposal cannot exert joint controlor significant influence over the investee it shall be accounted for by the relevant provisions of the “Accounting Standardsfor Business Enterprises No. 22 – Recognition and Measurement of Financial Instruments” and the difference between the
fair value and the carrying amount on the date of loss of control is included in the current profit or loss.
2) In the consolidated financial statements for each transaction before the loss of control over the subsidiary capital
reserve (share premium) is adjusted for the difference between the disposal price and the share of the net assets
corresponding to the disposed long-term equity investment that the subsidiary has continuously calculated from the date of
purchase or the merger date; if the capital reserve is insufficient to offset the retained earnings will be adjusted; when the
control of the subsidiary is lost the remaining equity shall be re-measured according to its fair value on the date of loss of
control. The sum of the consideration for the disposal of the equity and the fair value of the remaining equity less the share
of the net assets that that the original subsidiary has continuously calculated from the date of purchase calculated based on
the original shareholding is included in the investment income for the period of loss of control while reducing goodwill.
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Other comprehensive income related to the original subsidiary’s equity investment will be converted into current investment
income when control is lost.If each transaction on disposal of the equity investment in a subsidiary until the loss of control is a package transaction
each transaction is accounted for as a transaction to dispose of the equity investment in the subsidiary with loss of control
which is distinguished between individual financial statements and consolidated financial statements:
1) In the individual financial statements the difference between each disposal price and the carrying amount of the
long-term equity investment corresponding to the disposed equity before the loss of control is recognized as other
comprehensive income and when the control is lost it is transferred to profit or loss for the period of the loss of control.
2) In the consolidated financial statements the difference between each disposal price and the disposal investment that
has the share of the net assets of the subsidiary before the loss of control is recognized as other comprehensive income
and transferred to profit or loss for the period of the loss of control.
(5) Judging criteria for joint control and significant influence
If the Company collectively controls an arrangement with other parties in accordance with the relevant agreement and the
activity decision that has a significant impact on the return of the arrangement needs to be unanimously agreed upon by the
parties sharing the control it is considered that the Company and other parties jointly control an arrangement which is a
joint arrangement.If the joint arrangement is reached through a separate entity and it determines that the Company has rights to the net
assets of the separate entity in accordance with the relevant agreement the separate entity is regarded as a joint venture
and is accounted for using the equity method. If it is judged according to the relevant agreement that the Company does not
have rights to the net assets of the separate entity the separate entity acts as a joint operation and the Company
recognizes the items related to the share of the interests of the joint operation and conducts accounting treatment in
accordance with the relevant ASBEs.Significant influence refers to the investor's power of participation in making an investee's financial and operation policies
but the Company cannot control or jointly control with other parties to make these policies. The Company has a significant
influence on the investee under one or more of the following situations and taking into account all facts and circumstances:
(1) it is represented on the board of directors or similar authorities of the investee; (2) it involves in the formulation of
financial and operating policy of the investee; (3) it has important transactions with the investee; (4) it dispatches
management personnel to the investee; (5) it provides key technical information to the investee.
23. Investment Property
Measurement model for investment property
Measured based on the cost method
Depreciation or amortization method
Investment property refers to real estate held to earn rentals or for capital appreciation or both including the land use right
which has already been let out the land use right held and to be assigned after appreciation building which has been
leased out etc. In addition if the Board of Directors has a written resolution on the vacant buildings held by the Company
for the purpose of operating the lease it is clearly stated that they will be used for operating leases and that the intention to
hold is no longer changed in the short term and they are presented as investment property.
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The Company’s investment property is recorded at its cost and the cost of purchased investment property includes the
purchase price related taxes and other expenses directly attributable to the asset; the cost of self-built investment property
is composed of the necessary expenses incurred before the asset is ready for expected use.The Company adopts the cost model for subsequent measurement of investment property and depreciates or amortizes
buildings and land use rights according to their estimated service life and net residual value. Expected useful life residual
value and annual depreciation rate are as follows:
Categories Expected useful life (years) Expected residual value rate (%) Annual depreciation (amortization) (%)
Housing & buildings 20 -35 5.00 4.80 -2.70
When the use of investment property is changed to self-use the Company converts the investment property into fixed
assets or intangible assets from the date of change. When the use of self-use property changes to rental earning or capital
appreciation the Company converts fixed assets or intangible assets into investment property from the date of change.When a conversion occurs the carrying amount before conversion is used as the converted value.The investment property is derecognized when the investment property is disposed of or permanently withdrawn from use
and is not expected to obtain economic benefits from its disposal. The amount of disposal income from the sale transfer
retirement or damage of the investment property after deducting its carrying amount and related taxes and expenses is
recognized in profit or loss for the current period.
24. Fixed asset
(1)Recognition conditions of fixed assets
Fixed assets are tangible assets that are held for production of goods supply of services for rental to others or for
administrative purposes and have useful lives more than one accounting year. Fixed assets are recognized when the
following conditions are met at the same time:
1) The economic benefit related to the fixed asset is likely to flow into the enterprise;
2) The cost of the fixed asset can be reliably measured.
(2) Depreciation methods
Categories Depreciation methods Depreciation life Residual rate Yearly depreciation rate
Plant & buildings Average service life method 20 -35 5.00 4.80 -2.70
Machinery & equipment Straight-line method 10 5.00 -10.00 9.50 -9.00
Electronic equipment Straight-line method 5 5.00 19.00
Motor vehicle Straight-line method 5 5.00 19.00
Other equipment Straight-line method 5 5.00 19.00
Depreciation of fixed assets is accrued over the estimated useful life based on its recorded value less the estimated net
residual value. The fixed assets that have been provided for impairment losses are depreciated in the future period based
on the carrying amount after deducting the impairment provision and the remaining useful life.
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The Company determines the service life and estimated net residual value of fixed assets based on the nature and usage
of fixed assets. The Company rechecks the service life predicted net residual value and depreciation method of the fixed
asset at the end of of a year. In case there exists any difference with the original estimate the corresponding adjustment
should be made.
(3) Basis for recognizing the fixed assets under financing lease Pricing and Depreciation Methods
Inapplicable
25. Construction-in-progress
(1) Construction-in-progress
The self-built construction in progress of the Company is measured at the actual cost which is determined by the
necessary expenses incurred before the construction of the asset reaches the intended usable condition including the cost
of engineering materials labour costs and relevant taxes payable capitalized borrowing costs and indirect costs that
should be apportioned.
(2) Criteria for and time point of construction in progress to convert into fixed asset
For a construction-in-progress its entry value shall be the total expenses incurred before the built asset reaches the
expected use condition. Where a construction in progress has reached the expected use condition but the final accounts of
the as-built project have not been settled from the day when the fixed asset reaches the expected use condition values
estimated according to the construction budget and cost or the actual construction cost shall be assigned to the fixed asset
and the fixed asset shall be depreciated under the fixed asset depreciation provisions. The depreciation amount already
provided is not adjusted.
26. Borrowing Costs
(1)Recognition principle of capitalization of borrowing costs
If the borrowing costs incurred to the Company can be directly attributable to the acquisition construction or production of
assets that meet the conditions for capitalization they shall be capitalized and included in the cost of the relevant assets;
other borrowing costs shall be recognized as expenses based on the amount incurred when they incur and included in the
current profit and loss.The assets in compliance with the capitalization conditions refer to such assets as fixed assets investment based real
estate inventories etc. which need to undergo long time of acquisition or construction or production activities before they
can reach the predicted applicable or sellable status.As soon as the borrowing costs meet the following conditions capitalization starts:
A. Asset expenditures have already occurred including expenditures in the form of paying cash transferring non-cash
assets or assuming interest-bearing debts for the purchase construction or production of assets that meet the
capitalization conditions;
B. Borrowing costs have incurred;
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C. The purchase construction or production activities necessary for the assets to reach the expected usable or saleable
state have already begun.
(2) Period of capitalization of borrowing costs
The capitalization period refers to the period from the time when the capitalization of borrowing costs starts to the time
when the capitalization is stopped excluding the period during which the capitalization of borrowing costs is suspended.When the acquisition construction or production of assets that meet the capitalization conditions reaches the intended
usable or saleable state the capitalization of borrowing costs shall cease.When a part of the assets purchased or produced that meet the capitalization conditions are completed and can be used
alone such part of the assets shall stop capitalization of borrowing costs.Where each part of the assets purchased or produced is completed separately but must wait until the whole is completed
or can be sold externally the capitalization of the borrowing costs shall be stopped when the assets are completed as a
whole.
(3) Suspension of capitalization period
If an abnormal interruption occurs during the acquisition construction or production of an asset that meets the capitalization
conditions 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 acquired constructed or produced assets eligible for capitalization to reach
the intended use or sale state the borrowing costs may continue to be capitalized. The borrowing costs incurred during the
interruption period are recognized as the current profit and loss and the borrowing costs continue to be capitalized after the
acquisition construction or production activities of the asset are resumed.
(4) Calculation method for the capitalized amount of borrowing costs
Interest charges on special borrowings (excluding interest income on unused borrowings deposited in the bank or
investment income on temporary investment) and their ancillary expenses shall be capitalized before the assets purchased
or produced that meet the capitalization conditions are ready for intended use or sale.The amount of capitalized interest on general borrowings is calculated by the weighted average of the excess portion of the
accumulative asset expenditures over the special borrowings multiplied by the capitalization rate of general borrowings.The capitalization rate is determined based on the weighted average interest rate of general borrowings.Where there is a discount or premium in the borrowings the interest amount shall be adjusted in accordance with the
effective interest rate method to determine the discount or premium amount that shall be amortized during each accounting
period.
27. Biological Assets
Inapplicable
28. Oil and Gas Assets
Inapplicable
89FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
29. Right-to-use Assets
The Company initially measures the right-to-use assets at cost which includes:
1) initial measurement amount of lease liabilities;
2) lease payments made before or at the beginning of the lease term and deduction of the relevant amount of rental
incentives if any;
3) initial direct expenses incurred by the Company;
4) expected costs to be incurred by the Company for dismantling and removing leased assets restoring the site of leased
assets or restoring leased assets to the state agreed in the lease terms (excluding costs incurred for the production of
inventory)
After the starting date of the lease term the Company adopts the cost model for subsequent measurement of the asset with
use right.If it can be reasonably determined to obtain the ownership of the leased asset at the expiration of the lease term the
Company shall accrue depreciation during the remaining useful life of the leased asset. If it is impossible to reasonably
determine that the ownership of the leased asset can be obtained when the lease term expires the Company shall accrue
depreciation during the shorter period of the lease term and the remaining useful life of the leased asset. For the
right-to-use assets with impairment provision depreciation shall be calculated based on the book value after deduction of
impairment provision in according with the above principles in future periods.
30. Intangible assets
(1) Pricing Method Service Life and Impairment Test
Intangible assets refer to the identifiable non-monetary assets owned or controlled by the Company which have no physical
form including land use rights software and trademark use rights.
1) Initial measurement of intangible assets
The cost of outsourcing intangible assets includes the purchase price relevant taxes and other expenditures directly
attributable to the asset's intended use. If the payment for the purchase of intangible assets is delayed beyond the normal
credit conditions and is of a financing nature the cost of the intangible assets is determined on the basis of the present
value of the purchase price.For an intangible asset acquired through debt restructuring by the debtor for the purpose of repaying debts the Company
determines its entry value on the basis of the fair value of the intangible assets and includes the difference between the
book value of the restructured debt and the fair value of the fixed assets used to repay the debts in the current period profit
and loss.On the premise that the exchange of non-monetary assets has commercial substance and the fair value of the exchanged
assets or exchanged assets can be reliably measured the intangible assets exchanged in with non-monetary assets are
determined on the basis of the fair value of the exchanged assets unless there is conclusive evidence showing that the fair
value of the assets exchanged in is more reliable; for non-monetary asset exchanges that do not meet the above premises
90FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
the book value of the assets exchanged and the relevant taxes and fees payable shall be used as the cost of the exchange
of intangible assets and no profit or loss is recognized.For intangible asset obtained through business absorption or combination under common control its book value is
determined by the carrying amount of the combined party; for intangible asset obtained through business absorption or
merger not under common control its book value is determined by the fair value of the intangible asset.The costs of intangible assets developed internally includes: materials used in the development of the intangible asset
labor costs registration fees amortization of other patents and franchises used in the development process and interest
expenses that meet the capitalization conditions and other direct expenses incurred before the intangible asset reaches its
intended use.
2) Subsequent measurement of intangible assets
The Company determines the useful life of intangible assets on acquisition which are classified as intangible assets with
limited useful life and indefinite useful life.Intangible assets with a limited useful life
Intangible assets with a limited useful life are depreciated using straight line method over the term during which they bring
economic benefits to the Company. The estimated life and basis for the intangible assets with a limited useful life are as
follows:
Items Estimated useful life Amortization Method
Land use right 50 Straight-line method
Software system 5 Straight-line method
Trademark rights 5 -10 Straight-line method
The useful life and depreciation method of intangible assets with a limited useful life are reassessed at the end of each
period. If there is a difference from the original estimate corresponding adjustments will be made.Upon re-assessment there was no difference in the useful life and depreciation method of intangible assets from the
previous estimates at the end of the period.
(2) Accounting policy for internal research and development expenditure
1)Specific basis for determining the research stage and development stage of internal research and development projects
of the Company
Research phase: The phase of original planned investigations research activities to acquire and understand new science
or technology knowledge etc.Development phase: It is the phase in which the research result or other knowledge is applied in some plan or design so
that new or substantially improved materials devices products etc. are produced prior to commercial production or use.The expenditure of the research stage of the internal research and development project is included in the current profit or
loss at the time of occurrence
91FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
2) Specific standard for capitalization of expenditure in the development stage
The expenditure of an internal research and development project in the development stage is recognized as an intangible
asset when meeting all of the following conditions:
A. It is technically feasible to complete the intangible asset so that it can be used or sold;
B. With an intention to complete the intangible asset and to use or sell it;
C. The way the intangible asset generates economic benefits can prove the existence of a market for the products
produced using the intangible asset or a market for the intangible asset itself and if the intangible asset will be used
internally its usefulness can be proven;
D. Having sufficient technical financial resources and other resource support to complete the development of the intangible
asset and having the ability to use or sell the intangible asset;
E. Expenditure attributable to the development stage of the intangible asset can be reliably measured.Expenditures incurred in the development stage that do not meet the above conditions shall be included in the current profit
or loss at the time of occurrence. The development expenditures which have been included in the profit or loss in the
previous periods will not be recognized as an asset in the future period. The capitalized expenditures in the development
phase are shown in the balance sheet as development expenditures and are converted into intangible assets from the date
of the project’s intended use.
31. Impairment of long term assets
On the balance sheet date the Company determines whether there may be a sign of impairment on long-term assets. If
there is a sign of impairment on long-term assets the recoverable amount is estimated on the basis of a single asset. If it is
difficult to estimate the recoverable amount of a single asset then determine the recoverable amount of the asset group on
the basis of the asset group to which the asset belongs.The estimated recoverable amount of an asset is the higher of its fair value less the cost of disposal and the present value
of the expected future cash flow of the asset.The measurement results of recoverable amount show that when the recoverable amount of an long-term asset is lower
than its book value the book value of the long-term asset is reduced to its recoverable amount. The reduced amount is
recognized as an impairment loss on the asset and included in the current profit or loss at the same time asset impairment
provision will be made accordingly. Asset impairment loss shall not be reversed during the subsequent accounting period
once recognized.After the loss of asset impairment has been recognized the depreciation or amortization expenses of the impaired asset
shall be adjusted accordingly in the future periods so as to amortize the post - adjustment carrying value of the asset
systematically (deducting the expected net salvage value) within the residual service life of the asset.For the goodwill formed from consolidation of an enterprise and intangible asset with the undetermined service life
regardless whether there exists any evidence of impairment impairment testing is conducted every year.In the impairment test of goodwill the book value of goodwill would be apportioned to asset group or portfolio of asset
group expected to benefit from the synergy effect of an enterprise merger. When taking an impairment test on the relevant
asset group or portfolio of asset group containing goodwill if there is a sign of impairment on the asset group or portfolio of
92FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
asset group related to the goodwill the Company first calculates the recoverable amount after testing the asset group or
portfolio of asset group which does not contain the goodwill for impairment and then compares it with the related book
value to recognize the corresponding impairment loss. Next the Company conducts an impairment test on the asset group
or portfolio of asset group which contains the goodwill and compares the book value of the related asset group or portfolio
of asset group (book value includes the share of goodwill) with the recoverable amount. If the recoverable amount of the
related asset group or portfolio of asset group is lower than the book value the Company will recognize the impairment loss
of goodwill.
32. Long term expenses to be apportioned
(1) Amortization Method
Long term expenses to be apportioned refer to expenses that have already been spent by the Company but shall be
apportioned in the current period and the future periods and the benefit period is over 1 year. Long term expenses to be
apportioned are amortized in benefit period.
(2) Amortization period
Categories Amortization period
Counter fabrication expenses 2 -3
Decoration expenses 3 -5
Others 2 -3
33.Contract liabilities
The obligation to transfer goods to a customer for which consideration has been received or receivable is recognized in part
as a contract liability.
34. Payroll to Employees
(1) Accounting treatment of short term salaries
Short-term remuneration refers to the remuneration of the employees that needs to be fully paid within 12 months
after the end of the annual reporting period in which the employees provide related services except for
post-employment benefits and termination benefits. During the accounting period in which employees provide services the
Company recognizes the short-term remuneration payable as a liability and accounts for the relevant asset costs and
expenses based on the beneficiaries of the services provided by the employees.
(2) Post-employment benefits
Post-employment benefits refer to the compensation and benefits provided after employees’ retirement and
termination of employment by the Company in order to obtain services from employees except for the
short-term compensation and employee benefits.The Company’s post-employment benefits is defined contribution plan.The defined contribution plan of the Company refers to the basic endowment insurance unemployment insurance paid for
the employees according to relevant regulation by local governments. During the accounting period when employees
93FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
render services to the Company amount payable calculated by the base and ratio in conformity with local regulation is
recognized as liability and accounted for profit and loss or related cost of assets.After paying the above-mentioned funds regularly in accordance with the standards and annuity plans stipulated by the
state the Company does not have other payment obligations.
(3) Termination benefits
Termination benefits refer to the compensation paid to an employee when the Company terminates the employment
relationship with the employee before the expiry of the employment contract or provides compensation as an offer to
encourage the employee to accept voluntary redundancy. The Company recognizes the liabilities arising from the
compensation paid to terminate the employment relationship with employees and includes the same in the current profit or
loss at the earlier date of the following: when the Company cannot reverse the termination benefits due to the plan of
cancelling the labour relationship or the termination benefits provided by the advice of reducing staff; and the Company
recognizes the cost or expense relative to the payment of termination benefits of restructuring into the current profit or loss.The Company provides internal retirement benefits to employees who accept internal retirement arrangements. The
internal retirement benefits refer to the remuneration and the social insurance premiums paid to the employees who have
not reached the retirement age set by the State and voluntarily withdrew from the job after approval of the Company’s
management. The Company pays internal retired benefits to an internal retired employee from the day when the internal
retirement arrangement begins till the employee reaches the normal retirement age. For internal retirement benefits the
Company conducts accounting treatment in contrast to the termination benefits. When the related recognition conditions of
termination benefits are met the Company will recognize the remuneration and the social insurance premiums of the
internal retired employee to be paid during the period between the employee’s termination of service and normal retirement
date as liabilities and include the same in the current profit or loss in one time. Changes in actuarial assumptions of internal
retirement benefits and differences arising from the adjustment of welfare standards are included in current profit or loss
when incurred.
(4) Other long term employee benefits
Other long-term employee benefits refer to all employee benefits except for short-term remuneration post-employment
benefits and termination benefits.For other long-term employee benefits that meet the conditions of the defined contribution plan during the accounting
period in which the employees provide services for the Company the amount that should be paid is recognized as a liability
and is included in the current profit or loss or related asset costs. In addition to the above situations other long-term
employee benefits are actuarially calculated by the independent actuary using the expected cumulative welfare unit method
on the balance sheet date and the welfare obligations arising from the defined benefit plans are attributed to the period
during which the employees provide services and are included in the current profit or loss or related asset costs.
35. Lease liabilities
The Company initially measures the lease liabilities according to the present value of the unpaid lease payments at the
beginning of the lease term. In calculating the present value of lease payments the Company adopts the interest rate
implicit in the lease as the discount rate. If it is impossible to determine the interest rate implicit in the lease the incremental
borrowing rate of the Company shall be used as the discount rate. Lease payments include:
94FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
1)Fixed payments and substantive fixed payments after deducting the relevant amount of lease incentives;
2)Variable lease payments depending on an index or rate;
3) Where the Company reasonably determines that the option will be exercised the amount of the lease payment includes
the exercise price of purchase option;
4)Where the lease term reflects that the Company will exercise the option to terminate the lease the amount of the lease
payment includes the amount to be paid for the exercise of the option to terminate the lease;
5) Expected payments based on the guaranteed residual value provided by the Company.
The Company calculates the interest charges of the lease liabilities for each period of the lease term at a fixed discount rate
and includes the same in the profit or loss of the current period or the related asset costs.Variable lease payments not included in the measurement of lease liabilities shall be included in the current profit or loss or
the related asset costs when they actually occur.
36. Projected liabilities
(1) Basis for recognition of projected liabilities
The Company will recognize projected liabilities if the obligation relating to contingent matters meets all of the following
conditions:
This obligation is a present obligation assumed by the Company;
The fulfillment of this obligation will probably cause the outflow of economic benefits from the Company;
The amount of this obligation can be measured reliably.
(2) Measurement method of projected liabilities
The initial measurement of projected liabilities of the Company is based on the best estimate of the expenditure required for
the performance of the related present obligations.When determining the best estimate the Company comprehensively considers the risks uncertainties relating to the
contingent matters and time value of currency. If the time value of currency has a great influence the Company determines
the best estimate by discounting the related future cash outflows.The best estimate is determined in different situations as follow:
If there is a continuous range (or interval) of the required expenditure and the probability of the occurrence of all the results
in the range is the same the best estimate is determined according to the median value of the range which is the average
of the upper and lower limit.
95FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Where there is not a continuous range (or interval) of the required expenditure or there is a continuous range but the
probability of the occurrence of all the results in the range is different if the contingencies involve a single project the best
estimate is determined by the amount which is most likely to occur; if the contingencies involve a number of projects the
best estimate is determined based on various possible results and related probability calculation.If all or part of the expenses of the Company required to settle projected liabilities are expected to be compensated by a
third party and it is basically certain to receive the amount of compensation it is independently recognized as an asset. The
amount of compensation recognized will not exceed the book value of the projected liabilities.
37. Share-based payments
(1)Category of share-based payment
The Company’s share-based payments include equity-settled share-based payments and cash settled share-based
payments.
(2) Method for determining the fair value of equity instruments
For options and other equity instruments granted by the Company with an active market the fair value is determined at the
active market quotations. For options and other equity instruments granted by the Company with no active market option
pricing model shall be used to estimate the fair value of the equity instruments. Factors as follows shall be taken into
account using option pricing models: (1) the exercise price of the option; (2) the validity of the option; (3) the current price of
the target share; (4) the expected volatility of the share price: (5) predicted dividend of the share; (6) risk-free rate of the
option within the validity period.In determining the fair value of the equity instruments at the date of grant the Company shall consider the impact of market
conditions in the vesting conditions and non-vesting conditions stated in the share-based payment agreement. If there are
no vesting conditions in the share-based payments as long as the employees or other parties satisfy the non-market
conditions in all of the vesting conditions (such as term of service) the Company shall recognize the services rendered as
an expense accordingly.
(3)Recognition basis for the best estimate of exercisable equity instruments
On each balance sheet date within the vesting period the estimated number of exercisable equity instruments is amended
based on the best estimate made by the Company according to the latest available subsequent information as to changes
in the number of employees with exercisable rights. As at the exercise date the final estimated number of exercisable
equity instruments should equal the actual number of exercisable equity instruments.
(4) Accounting treatment
Equity-settled share-based payments are measured at the fair value of the equity instruments granted to employees. If the
right can be exercised immediately after the grant the fair value of the equity instrument shall be included in the relevant
costs or expenses on the date of grant and the capital reserve shall be increased accordingly. If the right is exercised after
the completion of the waiting period services or the achievement of the specified performance conditions on each balance
sheet date during the waiting period based on the best estimate of the number of exerciseable equity instruments the fair
value of the equity instruments is granted on the basis of value including the services obtained in the current period into
related costs or expenses and capital reserves. No adjustment will be made to the recognized related costs or expenses
and the total owner's equity after the vesting date.
96FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
The cash-settled share-based payment is measured at the fair value of the liabilities assumed by the Company determined
and based on shares and other equity instruments. If the right can be exercised immediately after the grant the fair value of
the liabilities assumed by the Company shall be included in the relevant costs or expenses on the date of grant and the
liabilities shall be increased accordingly. Cash-settled share-based payments that can only be exercised after the
completion of the waiting period services or the specified performance conditions are exercised. At each balance sheet
date during the waiting period the best estimate of the exercise is based on the fair value of the liabilities assumed by the
Company including the services obtained in the current period as costs or expenses and corresponding liabilities. The fair
value of the liabilities is re-measured and the movement is counted in the current profits and losses on each balance sheet
day and settlement day before the settlement of related liabilities.If the Company cancels the granted equity instrument during the vesting period the Company shall treat it as accelerated
vesting the amount which should be recognized during the remaining vesting period is counted to the current profit and
loss immediately and at the same time the capital reserve is recognized. If an employee or other party can choose to meet
the non-vesting conditions but fails to meet the vesting period the Company treats it as a cancellation of the granted equity
instrument.
38. Other financial instruments such as preferred shares perpetual liabilities etc.
Inapplicable
39. Revenue
Accounting policies used in revenue recognition and measurement
The Company’s revenue mainly come from:
Sales of watch
Precision manufacturing
Property leasing
(1) General principle of revenue recognition
The Company recognizes revenue when the contract performance obligations have been fulfilled i.e. the customer has
gained control over the relevant goods or services.Performance obligation means the Company’s commitment to transfer identifiable goods or service to clients.Obtaining control of the relevant goods means that it is able to dominate the use of the goods and derive almost all
economic benefits therefrom.The Company assesses contracts at the beginning date of a contract to identify each performance obligations contained in
a contract and to determine whether each performance obligation is to be finished over a period of time or at a point of time.The Company satisfies a performance obligation over time if one of the following criteria is met; or otherwise a
performance obligation is satisfied at a certain point in time: (1) the customer simultaneously receives and consumes the
benefits provided by the Company’s performance as the Company performs; (2) the customer can control the goods under
97FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
construction during the Company’s performance; (3) the Company’s performance does not create goods with an alternative
use to it and the Company has a right to payment for performance completed to date throughout the contract term.Otherwise the Company recognizes revenue at the point of time.For performance obligation satisfied over time the Company recognizes revenue over time by measuring the progress
towards complete satisfaction of that performance obligation. The input method is to determine the performance progress
based on the Company's input for fulfilling its performance obligations. When the outcome of that performance obligation
cannot be measured reasonably but the Company expects to recover the costs incurred in satisfying the performance
obligation the Company recognizes revenue only to the extent of the amount of costs incurred until it can reasonably
measure the outcome of the performance obligation.
(2) Detailed method of revenue recognition
The Company has three main business sectors: sales of watch precision manufacturing and property leasing. Based on
the Company’s business mode and terms of settlement the Company set detailed method of revenue recognition method
as follows:
1) Sales of watch
Sale of watch belongs to fulfilling performance obligations at a point of time.* Online sales
Revenue shall be recognized at the point that the goods are dispatched and the customer confirmed received the goods.* Offline sales
Revenue shall be recognized at the point when the goods are delivered and payment by customer is collected.* Consignment sale
The Company recognizes revenue when the Company receives the detail of the sales list from distributors and confirms
that the control over goods ownership were transferred to the purchaser.* Sale of consigned goods from others
Under sale of consigned goods from others the Group recognizes revenue in net amount when it delivered consigned sale
goods to customer and confirms that control over the ownership of goods were transferred to the purchaser.
2) Precision manufacturing
Precision manufacturing business belongs to fulfilling performance obligations at a point of time. Revenue from domestic
sales shall be recognized when the goods are delivered and the economic benefit associated with the goods is probable to
flow into the Company. Revenue from export shall be recognized when the following criteria is satisfied: The Company
declared the good at custom; obtained bill of lading; the right of collecting payment is obtained and its probable that the
economic benefit associated with the goods flows into the Company.
3)Property leasing
Refer to Note V 42 for details:accounting treatment with the Company as the lessor
(3) Revenue treatment principles for specific transactions
98FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
1) Contracts with sales return provisions
When the customer obtains control of the relevant goods revenue is recognized based on the amount of consideration
expected to be received due to the transfer of goods to the customers (exclusive of the amount expected to be refunded
due to the return of sales) while liability is recognized based on the amount expected to be refunded due to the return of
sales.The carrying amount of goods expected to be returned at sales of goods after deduction of costs expected to incur forrecovery of such goods (including impairment of value of the returned goods) will be accounted for under the item of “Rightof return assets”.
2) Contracts with quality assurance provisions
The Company assesses whether a separate service is rendered in respect of the quality assurance besides guaranteeing
the sales of goods to customers are in line with the designated standards. When additional service is provided by the
Company it is considered as a single performance obligation and under accounting treatment according to the standards
on revenue; otherwise quality assurance obligations will be under accounting treatment according to the accounting
standards on contingent matters
Differences in accounting policies for revenue recognition caused by the adoption of different business models for similar
businesses
Nil
40. Government subsidies
(1) Classification
Government subsidies refer to monetary and non-monetary assets received from the government without compensation
however excluding the capital invested by the government as a corporate owner. According to the subsidy objects
stipulated in the documents of relevant government government subsidies are divided into subsidies related to assets and
subsidies related to income.Government subsidies related to assets are obtained by the Company for the purposes of acquiring constructing or
otherwise forming long-term assets. Government subsidies related to income refer to the government subsidies other than
those related to assets.
(2) Recognition of government subsidies
Where evidence shows that the Company complies with relevant conditions of policies for financial supports and is
expected to receive the financial support funds at the end of the period the amount receivable is recognized as government
subsidies. Otherwise the government subsidy is recognized upon actual receipt.Government subsidies in the form of monetary assets are stated at the amount received or receivable. Government
subsidies in the form of non-monetary assets are measured at fair value; if fair value cannot be reliably obtained a nominal
amount (CNY 1) is used. Government subsidies that are measured at nominal amount shall be recognized in the current
profit or loss directly.
(3) Accounting treatment
99FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
The Company determines whether a government subsidy shall use gross method or net method based on its economical
substance. In general only one method is used for one category or similar government subsidy and it shall be used in a
consistent way.Government subsidies related to assets are recognized as deferred income and are recognized under reasonable and
systematic approach in profit and loss in each period over the useful life of the constructed or purchased assets;
Government subsidies related to income aiming at compensating for relevant expenses or losses to be incurred by the
enterprise in subsequent periods are recognized as deferred income and are recognized in current profit or loss when
relevant expenses or losses are recognized. Government subsidies aiming at compensating for relevant expenses or
losses of the enterprise that are already incurred are charged to current profit or loss once received.Government subsidies related to daily activities of enterprises are included in other income; government subsidies that are
not related to daily activities of enterprises are included in non-operating income and expense.Government subsidies related to the discount interest received from policy-related preferential loans offset the relevant
borrowing costs; if the policy-based preferential interest rate loan provided by the lending bank is obtained the borrowing
amount actually received shall be taken as the recording value of the borrowings and borrowing cost should be calculated
using the preferential interest rate according to the loan principal and the policy.When it is required to return recognized government subsidy if such subsidy is used to write down the carrying value of
relevant assets on initial recognition the carrying value of the relevant assets shall be adjusted; if there is balance of
relevant deferred income it shall be written down to the book balance of relevant deferred income and the excess is
included in the current profit or loss; where there is no relevant deferred income it shall be directly included in the current
profit or loss
41. Deferred Income Tax Assets and Deferred Income Tax Liabilities
Deferred income tax assets and deferred income tax liabilities are measured and recognized based on the difference
(temporary difference) between the taxable base of assets and liabilities and book value. On balance sheet date the
deferred income tax assets and deferred income tax liabilities are measured at the applicable tax rate during the period
when it is expected to recover such assets or settle such liabilities.
(1) Criteria for recognition of deferred income tax assets
The Company recognizes deferred income tax assets arising from deductible temporary difference to the extent it is
probably that future taxable amount will be available against which the deductible temporary difference can be utilized and
deductible losses and taxes can be carried forward to subsequent years. However the deferred income tax assets arising
from the initial recognition of assets or liabilities in a transaction with the following features are not recognized: 1) the
transaction is not a business combination; 2) neither the accounting profit or the taxable income or deductible losses will be
affected when the transaction occurs.For deductible temporary difference in relation to investment in the associates corresponding deferred income tax assets
are recognized in the following conditions: the temporary difference is probably reversed in a foreseeable future and it is
likely that taxable income is obtained for deduction of the deductible temporary difference in the future.
100FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
(2) Criteria for recognition of deferred income tax liabilities
The Company recognizes deferred income tax liabilities on the temporary difference between the taxable but not yet paid
taxation in the current and previous periods excluding:
1) temporary difference arising from the initial recognition of goodwill;
2) a transaction or event arising from non-business combination and neither the accounting profit or the taxable income (or
deductible losses) will be affected when the transaction or event occurs;
3) for taxable temporary difference in relation to investment in subsidiaries or associates the time for reversal of the
temporary difference can be controlled and the temporary difference is probably not reversed in a foreseeable future
(3) When all of the following conditions are satisfied deferred income tax assets and deferred income tax liabilities
shall be presented on a net basis
1) An enterprise has the statutory right to settle the current income tax assets and current income tax liabilities at their net
amounts;
2) The deferred income tax assets and deferred income tax liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities which intend either to settle current income tax assets
and current income tax liabilities on a net basis or to realize the assets and settle the liabilities simultaneously in each
future period in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
42. Lease
(1) Accounting process for operating lease
The Company adopts the straight-line method or other systematic and reasonable method in each period of the lease term
and recognizes the lease receipts from operating leases as rental income; the initial direct expenses incurred in relation to
operating leases are capitalized and amortized on the same basis as rental income recognition during the lease term and
included in the current profit and loss in installments; the variable lease payments obtained in relation to operating leases
that are not included in the lease receipts are included in the current profit and loss when actually incurred.
(2) Accounting treatment method for finance lease
If a lease has one or more of the following characteristics the Company usually classifies it as a financial lease：
1) At the expiry of the lease term the ownership of the leased assets is transferred to the lessee.
2) The lessee has the option to purchase the leased assets and the purchase price set by the lessee is low enough
compared with the expected fair value of the leased assets when exercising the option. Therefore it can be reasonably
determined on the lease start date that the lessee will exercise the option.
3) Although the ownership of the assets is not transferred the lease term accounts for the majority of the life of the leased
assets.
4) On the commencement date of the lease the present value of the lease receipts is almost equal to the fair value of the
leased assets.
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5)The nature of leased assets is special. If there is no major transformation only the lessee can use them.
If one or more of the following conditions exist in a lease it may also be classified as a financial lease:
1)If the lessee stops the lease the lessee shall bear the losses caused by the termination of the lease to the lessor.
2)The profits or losses caused by the fluctuation of the fair value of the balance of assets belong to the lessee.
3) The lessee can continue to lease far below the market level for the next period.
On the commencement date of lease term the Company recognizes the financial lease receivable on the financial leases
and derecognizes the financial lease assets.When the initial measurement of the financial lease receivable is made the book value of the financial lease receivable is
the sum of the unsecured balance and the present value of lease receipts that have not yet been received at the beginning
of the lease term discounted at the interest rate implicit in the lease. The lease receipts include:
1) Fixed payments and substantive fixed payments after deducting the relevant amount of lease incentives;
2) Variable lease payments depending on an index or rate;
3) In the case of reasonably determining that the lessee will exercise the purchase option the lease receipts include the
exercise price of purchase option;
4) If the lease term reflects that the lessee will exercise the option to terminate the lease the lease receipts include the
amount to be paid by the lessee in exercising the option to terminate the lease;
5) Guarantee residual value provided to the lessor by the lessee the party concerned with the lessee and an independent
third party with financial capacity to fulfill the guarantee obligation.The Company calculates and recognizes the interest income for each period of the lease term based on the fixed interest
rate implicit in the lease and the variable lease payments which are obtained and not included in the net rental investment
amount are included in the profit or loss of the period when they actually occur.
43. Other important accounting policy and accounting estimate
Inapplicable
44. Changes in significant accounting policies and accounting estimates
(1) Change in significant accounting policies
Inapplicable
102FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
(2) Change in significant accounting estimates
Inapplicable
45. Others
Inapplicable
VI. Taxation
1. Types of major taxes and tax rates
Type of taxes Tax basis Tax rates
Domestic sales and provision of processing
repairing and repairing services; property
Value-added tax 13% 9% 6% and 5%
lease services; other taxable sales service
activities; simplified method
Consumption tax High-grade watches 20%
Urban maintenance and construction tax Amount of the turnover tax actually paid 7% and 5%
Business income tax Taxable income amount For the detail refer to the following table
In case there exist taxpayers subject to different corporate income tax rates disclose the information.Taxpayers Income tax rates
Shenzhen Harmony World Watches Center Co. Ltd.(* ) 25%
FIYTA Sales Co. Ltd. (* ) 25%
Shenzhen FIYTA Precision Technology Co. Ltd. (* * ) 15%
Shenzhen FIYTA Technology Development Co. Ltd. (* * ) 15%
Harmony World Watches Center (Hainan) Ltd.(* ) 20%
Shenzhen XUNHANG Precision Technology Co. Ltd. 25%
Emile Chouriet (Shenzhen) Limited 25%
Liaoning Hengdarui Commerce & Trade Co. Ltd. 25%
Shiyuehui Boutique (Shenzhen) Co. Ltd. 25%
Shenzhen Harmony E-Commerce Limited (* ) 20%
FIYTA (Hong Kong) Limited (* ) 16.5%
Montres Chouriet SA (* ) 30%
2. Tax PreferencesNote * : According to the regulations stated in “Interim Administration Method for Levy of Corporate Income Tax toEnterprise that Operates Cross-regionally” the head office of the Company and its branch offices the head office of
103FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
HARMONY Company and its branch offices and the head office of Sales Company and its branch offices adopt taxsubmission method of “unified calculation managing by classes pre-paid in its registered place settlement in total andadjustment by finance authorities”. Branch offices mentioned above share 50% of the enterprise income tax and prepay
locally; and 50% will be prepaid by the head offices mentioned above;Note * : According to “Notice of the Ministry of Finance the State Administration of Taxation and Ministry of Science onFurther Perfection of the Pre-tax Super Deduction Ratio of Research and Development Expenses” (Cai Shui (2021) No.
13) if the research and development costs are not capitalized as intangible assets but charged to current profit or loss all
of these entities can enjoy a 100% super deduction on top of the R&D expenses that allowed to deduct before income tax
since 1 January 2021.Note * : The Company enjoyed for “Reduction and Exemption in Corporate Income Tax Rate for High and NewTechnology Enterprises that Require Key Support from the State”;
Note * : These companies are registered in Hong Kong and the income tax rate of Hong Kong applicable is 16.50% this
year.Note * : The comprehensive tax rate of 30% is applicable for Swiss Company as it registered in Switzerland.Note * These companies are small and low-profit enterprises which enjoy 20% tax rate.
2.Preferential treatment and corresponding approval
According to the Announcement of the Ministry of Finance and the State Administration of Taxation on Implementing the
Preferential Income Tax Policies for Micro and Small Enterprises and Individual Industrial and Commercial Households
(CAISHUI (2022) No. 13) “Proclamation of Ministry of Finance and State Administration of Taxation in ImplementingPreferential Tax Rate to Small and Low Profit Enterprises and Sole-proprietors” (Caishui (2021) No.12) and “Notice ofMinistry of Finance and State Administration of Taxation on Implementation of the Inclusive Income Tax Deduction andExemption Policies for Small Low-Profit Enterprises” (Cai Shui (2019) No.13) the portion of annual taxable income of small
low-profit enterprise that is below CNY1000000.00 will be included in taxable income at 12.5% and to be taxed at a rate of
20%; and for annual taxable income that is greater than CNY1000000.00 but not exceeding CNY3000000.00 of which
25% will be included in taxable income and to be taxed at 20%.
In accordance with Notice of the Ministry of Finance and the State Administration of Taxation on Extending the Loss
Carryover Period for High and New Technology Enterprises and Small and Medium-Sized Technological Enterprises (CAI
SHUI (2018)No.76) commencing from January 1 2018 the unrecovered losses incurred in the 5 fiscal years before being
qualified for becoming a high-tech enterprise are allowed to be carried forward to make up for subsequent years and the
longest carry-forward period has been extended from 5 years to 10 years.According to the Announcement of the Ministry of Finance and the State Taxation Administration on Further Keeping
Accelerating the Implementation of the Policies Regarding the Refund of Term-End Excess Input Value-Added Tax Credits
the eligible small and micro enterprises may apply to the competent tax authority for refund of the incremental tax credits
starting from the tax filing period in April 2022. Eligible micro-enterprises may apply to competent tax authorities for refund
of existing excess input tax credits commencing from April 2022; eligible small enterprises pay apply to competent tax
authorities for the refund of existing excess input tax credits in a lump sum from the tax return filing period of May 2022.
104FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
3. Others
Inapplicable
VII. Notes to items of consolidated financial statements
1. Monetary capital
In CNY
Items Ending balance Opening balance
Cash in stock 175028.83 108612.08
Bank deposit 392393331.66 188908798.10
Other Monetary Funds 1305570.06 21237326.96
Total 393873930.55 210254737.14
Including: total amount deposited
4702798.191724651.93
overseas
Other note
As at 30th June 2021 the Company does not have balance of cash or other monetary funds that are restricted because
being pledged as security frozen or have potential risk in recovery.
2. Transactional financial assets
Inapplicable
3. Derivative financial assets
Inapplicable
4. Notes receivable
(1) Presentation of classification of notes receivable
In CNY
Items Ending balance Opening balance
Bank acceptance 4401079.80 2989331.70
Trade acceptance 49453891.33 58268814.10
Total 53854971.13 61258145.80
In CNY
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Categories
Provision Book value Provision Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Including
:
Notes 56457807 100.00% 2602836. 4.61% 53854971 64324925 100.00% 3066779. 4.77% 61258145
105FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
receivable .54 41 .13 .49 69 .80
for which
bad debt
reserve
has been
provided
based on
portfolios
Including
:
Business
520567272602836.49453891613355933066779.58268814
acceptanc 92.20% 5.00% 95.35% 5.00%.7441.33.7969.10
e note
Risk-free
bank 4401079. 4401079. 2989331. 2989331.
7.80%0.00%4.65%0.00%
acceptanc 80 80 70 70
e portfolio
564578072602836.53854971643249253066779.61258145
Total 100.00% 4.61% 100.00% 4.77%.5441.13.4969.80
Provision for bad debts based on portfolio: commercial acceptance portfolio
In CNY
Ending balance
Name
Book balance Bad debt reserve Provision proportion
Business acceptance note 52056727.74 2602836.41 5.00%
Total 52056727.74 2602836.41
Note to the basis for determining the combination:
Notes receivables with same aging have similar credit risk characteristics
Provision for bad debts based on portfolio: bank acceptance portfolio
In CNY
Ending balance
Name
Book balance Bad debt reserve Provision proportion
Risk-free bank acceptance portfolio 4401079.80 0.00%
Total 4401079.80
Note to the basis for determining the combination:
The issuer has higher level of credit rating and no default in past and has strong ability to fulfill its contractual cash follow
obligation
If the provision for bad debts of notes receivable is accrued in accordance with the general expected credit loss model
please refer to the disclosure of other receivables to disclose the relevant information of the provision for bad debts:
Inapplicable
106FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
(2) Provision recovery or reversal of reserve for bad debts during the reporting period
Provision for bad debt during the reporting period
In CNY
Amount of movement during the reporting period
Categories Opening balance Recovery or Ending balance
Provision Written-off Others
reversal
Notes receivable
with expected
3066779.690.00463943.280.000.002602836.41
credit loss by
portfolio
Total 3066779.69 0.00 463943.28 0.00 0.00 2602836.41
Where the significant amount of the reserve for bad debt recovered or reversed:
Inapplicable
(3) Notes receivable already pledged by the Company at the end of the reporting period
Inapplicable
(4) Endorsed or discounted notes receivable at the end of the reporting period but not yet due on the balance
sheet date
In CNY
Amount involved in the termination of Amount without termination of recognition at
Items
recognition at the end of the reporting period the end of the reporting period
Commercial acceptance bills 0.00 12178305.45
Total 0.00 12178305.45
(5) Notes transferred to receivables due to issuer’s default at the end of the reporting period
Inapplicable
(6) Notes receivable actually written off in current period
Inapplicable
5. Accounts receivable
(1) Accounts receivable disclosed by category
In CNY
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Categories
Provision Book value Provision Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts 42011496 30585384 11426111. 41742982 32056051 9686931.
9.07%72.80%9.66%76.79%
receivable .08 .60 48 .67 .67 00
107FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
for which
bad debt
reserve
has been
provided
based on
individual
items
Including
:
Accounts
receivable
for which
bad debt
421417851320826340820959390245371104670037919867
reserve 90.93% 3.13% 90.34% 2.83%
7.95.484.470.43.150.28
has been
provided
based on
portfolios
Including
:
Accounts
receivable 42141785 13208263 40820959 39024537 11046700 37919867
90.93%3.13%90.34%2.83%
from other 7.95 .48 4.47 0.43 .15 0.28
customers
463429354379364841963570431988354310275138888560
Total 100.00% 9.45% 100.00% 9.98%
4.03.085.953.10.821.28
Bad debt reserve provided based on individual items: Accounts receivable from other customers
In CNY
Ending balance
Name
Book balance Bad debt reserve Provision proportion Provision reason
Accounts receivable from Small possibility of
42011496.0830585384.6072.80%
other customers recovery as predicted
Total 42011496.08 30585384.60
Bad debt reserve provided based on portfolio: Accounts receivable from other customers
In CNY
Ending balance
Name
Book balance Bad debt reserve Provision proportion
Accounts receivable from other
421417857.9513208263.483.13%
customers
Total 421417857.95 13208263.48
Note to the basis for determining the combination:
Notes receivables with same aging have similar credit risk characteristics
Provision for bad and doubtful debts based on portfolio:
Inapplicable
Note to the basis for determining the combination:
Inapplicable
108FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
If the provision for bad debts of accounts receivable is accrued in accordance with the general expected credit loss model
please refer to the disclosure of other receivables to disclose the relevant information of the provision for bad debts:
Inapplicable
Disclosed based on aging
In CNY
Aging Ending balance
Within 1 year (with 1 year inclusive) 426691644.02
1 to 2 years 18361770.82
2 to 3 years 6003104.55
Over 3 years 12372834.64
3 to 4 years 5990829.06
4 to 5 years 4181220.96
Over 5 years 2200784.62
Total 463429354.03
(2) Provision recovery or reversal of reserve for bad debts during the reporting period
Provision for bad debt during the reporting period
In CNY
Amount of movement during the reporting period
Categories Opening balance Recovery or Ending balance
Provision Written-off Others
reversal
Accounts
receivable with
single provision 32056051.67 612187.80 2130784.84 0.00 47929.97 30585384.60
for expected
credit loss
Accounts
receivable with
provision for 11046700.15 2182725.60 27507.41 0.00 6345.14 13208263.48
expected credit
loss by portfolio
Total 43102751.82 2794913.40 2158292.25 0.00 54275.11 43793648.08
Where the significant amount of the reserve for bad debt recovered or reversed:
In CNY
Organization name Amount recovered or reversed Way of recovery
Suning.com Co.Ltd. 1827384.80 Bank transfer
Total 1827384.80
(3) Accounts receivable actually written off in the reporting period
Inapplicable
(4) Accounts receivable owed by the top five debtors based on the ending balance
In CNY
109FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Ending balance of the accounts Proportion in total ending Ending balance of the provision
Organization name
receivable balance of accounts receivable for bad debts
Summary of the top five
accounts receivable in the 153783424.18 33.18% 16278612.40
ending balance
Total 153783424.18 33.18%
(5) Account receivable with recognition terminated due to transfer of financial assets
Inapplicable
(6) Amount of assets and liabilities formed through transfer of accounts receivable and continuing to be involved
Inapplicable
6. Financing with accounts receivable
Inapplicable
7. Advance payments
(1) Advance payments are presented based on ages
In CNY
Ending balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 10582818.74 100.00% 7946750.81 100.00%
Total 10582818.74 7946750.81
Note to the reason why advance payments with an age exceeding 1 year and significant amount are not settled in time:
Inapplicable
(2) Advance payment to the top five payees in the ending balance collected based on the payees of the advance
payment
Organization name Ending balance Proportion in the total advance payments
Summary of the advance payments in the ending balance to the top 5 payees 5734567.00 54.19%
8. Other receivables
In CNY
Items Ending balance Opening balance
Other receivables 58848161.73 61553267.82
Total 58848161.73 61553267.82
110FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
(1) Interest receivable
1) Classification of interest receivable
Inapplicable
2) Significant overdue interest
Inapplicable
3) Provision for bad debts
Inapplicable
(2) Dividends receivable
1) Classification of dividends receivable
Inapplicable
2) Significant dividends receivable with age exceeding 1 year
Inapplicable
3) Provision for bad debts
Inapplicable
(3) Other receivables
1) Classification of other receivables based on nature of payment
In CNY
Nature of the fund Ending book balance Opening book balance
Reserve for employees 4787803.12 2556673.37
Collateral deposit 49614405.76 55467644.12
Others 8691913.30 7949229.66
Total 63094122.18 65973547.15
2) Provision for bad debts
In CNY
Stage 1 Stage 2 Stage 3
Expected credit loss in Expected credit loss in
Provision for bad debt Expected credit loss in the whole duration (no the whole duration (credit Total
future 12 months credit impairment impairment already
incurred) incurred)
Balance as at January 3055122.43 1365156.90 4420279.33
111FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
012022
Balance as at January
01 2022 in the reporting
period
Provision in the reporting
42606.0820570.0063176.08
period
Reversal in the reporting
228782.568100.00236882.56
period
Other changes -612.40 -612.40
Balance as at June 30
2868333.551377626.904245960.45
2022
Provision for loss - Change of the book balance with significant amount during the reporting period
Inapplicable
Disclosed based on aging
In CNY
Aging Ending balance
Within 1 year (with 1 year inclusive) 61807524.74
1 to 2 years 649029.90
2 to 3 years 477214.06
Over 3 years 160353.48
3 to 4 years 120303.48
Over 5 years 40050.00
Total 63094122.18
(3) Provision recovery or reversal of reserve for bad debts during the reporting period
Provision for bad debt during the reporting period
In CNY
Amount of movement during the reporting period
Categories Opening balance Recovery or Ending balance
Provision Written-off Others
reversal
Provision for bad
4420279.3363176.08236882.560.00-612.404245960.45
debt
Total 4420279.33 63176.08 236882.56 0.00 -612.40 4245960.45
Where a significant amount of the reserve for bad debt recovered or reversed during the reporting period:
Inapplicable
4) Other receivables actually written off in the reporting period
Inapplicable
5) Accounts receivable owed by the top five debtors based on the ending balance
In CNY
Organization name Nature of Payment Ending balance Aging Proportion in total Ending balance of
112FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
ending balance of the provision for bad
other receivables debts
Summary of the top
five other Collateral deposit
17475483.52 Within 1 year 27.70% 873774.17
receivables in the etc.ending balance
Total 17475483.52 27.70% 873774.17
6) Accounts receivable involving government subsidy
Inapplicable
7) Other receivables derecognized due to transfer of financial assets
Inapplicable
8) Amount of assets and liabilities formed through transfer of other receivables and continuing to be involved
Inapplicable
9. Inventories
Does the Company need to comply with the requirements on information disclosure for real estate industry
No
(1) Classification of inventories
In CNY
Ending balance Opening balance
Provision for price Provision for price
falling of inventory or falling of inventory or
Items provision for provision for
Book balance Book value Book balance Book value
impairment of impairment of
contract performance contract performance
costs costs
Raw
159690508.0718231497.79141459010.28181764220.9017693135.85164071085.05
materials
Products in
8473878.870.008473878.8720682530.580.0020682530.58
process
Commodities
1919590959.8589527578.611830063381.241960110199.4894715064.221865395135.26
in stock
Total 2087755346.79 107759076.40 1979996270.39 2162556950.96 112408200.07 2050148750.89
(2) Provision for price falling of inventory or provision for impairment of contract performance costs
In CNY
Amount increased in the reporting period Decrease in the reporting period
Items Opening balance Ending balance
Provision Others Reversal or write-off Others
Raw materials 17693135.85 0.00 551010.65 12648.71 0.00 18231497.79
113FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Commodities in
94715064.22360867.4051325.375599678.380.0089527578.61
stock
Total 112408200.07 360867.40 602336.02 5612327.09 0.00 107759076.40
Note to provision for price falling:
Reason for reversal or write-off of the provision for price falling of
Items Evidence of determine NRV and future selling cost
inventories in the reporting period
Estimated selling price less estimated cost to complete and selling and Factors that caused impairment has been disappeared and the NAV is
Raw materials
distribution expenses and associated taxes higher than its carrying amount
Commodities in Estimated selling price less estimated selling and distributing expenses and
Inventory that already provided for was sold or used in current period
stock associated taxes
(3) Note to the amount of capitalized borrowing costs involved in the ending balance of inventories
Inapplicable
(4) Description of the current amortization amount of contract performance costs
Inapplicable
10. Contract assets
Inapplicable
11. Held-for-sale assets
Inapplicable
12. Non-current assets due within a year
Inapplicable
13. Other current assets
In CNY
Items Ending balance Opening balance
Excess VAT paid 12669164.38 20468630.65
Input VAT to be certified 13369767.27 41895970.19
Income tax paid in advance 282638.67 2459142.75
Others 4947045.88 7874949.13
Total 31268616.20 72698692.72
114FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
14. Equity investment
Inapplicable
15. Other equity investment
Inapplicable
16. Long term accounts receivable
(1) About long term accounts receivable
Inapplicable
(2) Long term account receivable derecognized due to transfer of financial assets
Inapplicable
(3) Amount of assets and liabilities formed through transfer of long term accounts receivable and continuing to be
involved
Inapplicable
17. Long-term equity investments
In CNY
Increase/ Decrease (+ / -) in the reporting period
Income
from Ending
equity Adjustm Announ balance
Opening Ending
Addition Decreas investm ent of Other ced for Provisio of the
Investee balance balance
al e of ent other equity distributi n for provisio
s (book Others (book
investm investm recogniz compreh moveme ng cash impairm n for
value) value)
ent ent ed ensive nt dividend ent impairm
under income or profit ent
equity
method
I. Joint Venture
II. Associates
Shangh
ai Watch 551556 246262 576182
Industry 05.31 6.52 31.83
Co. Ltd.Sub-tota 551556 246262 576182
l 05.31 6.52 31.83
551556246262576182
Total
05.316.5231.83
115FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
18. Investment in other equity instruments
In CNY
Items Ending balance Opening balance
Xi'an Tangcheng Co. Ltd. 85000.00 85000.00
Total 85000.00 85000.00
Itemized disclosure of investment in non-transactional equity instruments in the reporting period
Inapplicable
19. Other non-current financial assets
Inapplicable
20. Investment Property
(1) Investment property measured based on the cost method
In CNY
Items Housing & buildings Land use right Construction-in-progress Total
I. Original book value
Opening balance 610886415.67 610886415.67
Amount increased in the
reporting period
(1) Purchased
(2) Inventories\fixed
assets/construction-in–progre
ss transferred in
(3) Increase of
enterprise consolidation
3. Amount decreased in
the reporting period
(1) Disposal
(2) Other transfer
out
4. Ending balance 610886415.67 610886415.67
II. Accumulative depreciation
and accumulative
amortization
Opening balance 227460499.32 227460499.32
2. Amount increased in
7718268.727718268.72
the reporting period
(1) Provision or
7718268.727718268.72
amortization
3. Amount decreased in
the reporting period
116FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
(1) Disposal
(2) Other transfer
out
4. Ending balance 235178768.04 235178768.04
III. Provision for impairment
1. Opening balance
2. Amount increased in
the reporting period
(1) Provision
3. Amount decreased in
the reporting period
(1) Disposal
(2) Other transfer
out
4. Ending balance
IV. Book value
1.Book value at the end
375707647.63375707647.63
of the reporting period
2.Book value at the
beginning of the reporting 383425916.35 383425916.35
period
(2) Investment property measured based on fair value
Inapplicable
(3) Investment property that does not have certificate for property right
Inapplicable
21. Fixed asset
In CNY
Items Ending balance Opening balance
Fixed asset 340122918.20 349495316.65
Total 340122918.20 349495316.65
(1) About fixed assets
In CNY
Machinery & Electronic
Items Plant & buildings Motor vehicle Others Total
equipment equipment
I. Original book
value
1. Opening
408187709.06107468100.8614780510.3846317448.5346887269.94623641038.77
balance
2. Amount 118161.68 1855411.01 1078086.78 580646.30 3632305.77
117FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
increased in the
reporting period
(1) Purchase 550.00 1806833.02 1077578.59 580646.30 3465607.91
(2)
Construction-in-p
rocess
transferred in
(3) Increase of
business
combination
(4) Change of the
117611.6848577.99508.19166697.86
exchange rate
3. Amount
decreased in the 36450.82 322696.37 773422.24 1597503.47 2730072.90
reporting period
(1) Disposal or
304801.68772796.441595859.482673457.60
scrapping
(2) Change of the
36450.8217894.69625.801643.9956615.30
exchange rate
4. Ending
408269419.92109000815.5014780510.3846622113.0745870412.77624543271.64
balance
II. Accumulative
depreciation
1. Opening
122149565.1863039735.1212847470.8135896505.6640212445.35274145722.12
balance
2. Amount
increased in the 6188691.41 3630322.25 180931.88 1650494.43 969824.20 12620264.17
reporting period
(1) Provision 6030493.33 3579918.79 180931.88 1650011.65 969824.20 12411179.85
(2) Change of the
158198.0850403.46482.78209084.32
exchange rate
3. Amount
decreased in the 21068.56 243575.86 698604.15 1382384.28 2345632.85
reporting period
(1) Disposal or
230386.66698156.641380859.882309403.18
scrapping
(2) Change of the
21068.5613189.20447.511524.4036229.68
exchange rate
4. Ending
128317188.0366426481.5213028402.6936848395.9439799885.27284420353.44
balance
III. Provision for
impairment
1. Opening
balance
2. Amount
increased in the
reporting period
(1) Provision
3. Amount
decreased in the
reporting period
118FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
(1) Disposal or
scrapping
4. Ending
balance
IV. Book value
1.Book value at
the end of the 279952231.89 42574333.98 1752107.69 9773717.14 6070527.50 340122918.20
reporting period
2.Book value at
the beginning of
286038143.8844428365.741933039.5710420942.876674824.59349495316.65
the reporting
period
(2) About temporarily idle fixed assets
Inapplicable
(3) Fixed assets leased through operating lease
Inapplicable
(4) Fixed assets that do not have certificate for property right
In CNY
The reason why the title certificate has not
Items Book value
been granted
Housing & buildings 214873.64 There existed problem in ownership
(5) Disposal of fixed assets
Inapplicable
22. Construction-in-progress
(1)About construction-in-progress
Inapplicable
(2) Movements of important construction-in-progress projects in the reporting period
Inapplicable
(3) Provision for impairment of construction in progress in the current period
Inapplicable
119FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
(4) Engineering materials
Inapplicable
23. Productive biological asset
(1) Productive biological asset by using the cost measurement model
Inapplicable
(2) Productive biological asset by using the fair value measurement model
Inapplicable
24. Oil and Gas Assets
Inapplicable
25. Right-to-use Assets
In CNY
Items Housing & buildings Total
I. Original book value
1. Opening balance 313578633.64 313578633.64
2. Amount increased in the reporting period 37399385.30 37399385.30
Lease 37394626.91 37394626.91
Other increases 4758.39 4758.39
3. Amount decreased in the reporting period 11919488.44 11919488.44
Disposal 11919488.44 11919488.44
4. Ending balance 339058530.50 339058530.50
II. Accumulative depreciation
1. Opening balance 165646158.22 165646158.22
2. Amount increased in the reporting period 57747319.25 57747319.25
(1) Provision 57747319.25 57747319.25
3. Amount decreased in the reporting period 7606602.97 7606602.97
(1) Disposal 7401955.53 7401955.53
(2) Other decreases 204647.44 204647.44
4. Ending balance 215786874.50 215786874.50
III. Provision for impairment
1. Opening balance
2. Amount increased in the reporting period
(1) Provision
3. Amount decreased in the reporting period
(1) Disposal
4. Ending balance
IV. Book value
120FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
1.Book value at the end of the reporting period 123271656.00 123271656.00
2.Book value at the beginning of the reporting
147932475.42147932475.42
period
26. Intangible assets
(1) About the intangible assets
In CNY
Patent Non-patent
Items Land use right Software system Trademark rights Total
Right technology
I. Original book
value
1. Opening balance 34933822.40 30286420.21 15255625.58 80475868.19
2. Amount
increased in the 834137.57 834137.57
reporting period
(1) Purchase 834137.57 834137.57
(2) Internal R & D
(3) Increase of
business
combination
3. Amount
decreased in the
reporting period
(1) Disposal
4. Ending balance 34933822.40 31120557.78 15255625.58 81310005.76
II. Accumulative
amortization
1. Opening balance 15782368.73 22778471.88 7879697.15 46440537.76
2. Amount
increased in the 366776.65 1800726.11 582540.42 2750043.18
reporting period
(1) Provision 366776.65 1800726.11 582540.42 2750043.18
3. Amount
decreased in the
reporting period
(1) Disposal
4. Ending balance 16149145.38 24579197.99 8462237.57 49190580.94
III. Provision for
impairment
1. Opening balance
2. Amount
increased in the
reporting period
(1) Provision
3. Amount
decreased in the
121FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
reporting period
(1) Disposal
4. Ending balance
IV. Book value
1.Book value at the
end of the reporting 18784677.02 6541359.79 6793388.01 32119424.82
period
2.Book value at the
beginning of the 19151453.67 7507948.33 7375928.43 34035330.43
reporting period
At the end of the reporting period the intangible assets formed through the Company's internal research and development
accounted for 0.00% of the balance of intangible assets.
(2) About the land use right that does not have certificate of title
Inapplicable
27. Development expenditure
Inapplicable
28. Goodwill
(1) Original book value of the goodwill
Inapplicable
(2) Provision for impairment of the goodwill
Inapplicable
29. Long term expenses to be apportioned
In CNY
Amount increased in Amount amortized in
Items Opening balance Other decrease Ending balance
the reporting period the reporting period
Counter fabrication
28563171.7214554656.7014082604.760.0029035223.66
expenses
Decoration 0.00
120695905.9028488235.6332865151.60116318989.93
expenses
Others 14531255.82 908758.29 5105686.83 0.00 10334327.28
Total 163790333.44 43951650.62 52053443.19 0.00 155688540.87
30. Deferred Income Tax Assets and Deferred Income Tax Liabilities
(1) Deferred income tax asset without offsetting
In CNY
122FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Ending balance Opening balance
Items Deductible provisional Deferred income tax Deductible provisional Deferred income tax
difference asset. difference asset.Asset impairment reserve 142660453.73 30207730.28 148079831.14 31562627.52
Unrealized profit from the
intracompany 84064294.99 20987571.65 96716186.61 24021244.01
transactions
Offsetable loss 106516674.31 26263504.09 62781216.23 15188881.56
Equity incentive 18127165.97 4219722.81 17502152.62 4121326.77
Promotion expenses
available for
10871480.002935951.5311503471.122219622.49
carrying-forward to the
next year
Rent liabilities 125150138.17 31287534.55 147888578.26 36972144.57
Others 1792833.90 448208.48 9993278.10 2498319.53
Total 489183041.07 116350223.39 494464714.08 116584166.45
(2) Deferred income tax liabilities without offsetting
In CNY
Ending balance Opening balance
Items Provisional difference of Deferred income tax Provisional difference of Deferred income tax
taxes payable liability taxes payable liability
Fixed assets deducted in
once-and-for-all way 24438453.07 3665767.96 24113302.98 3616995.45
before taxation
29. Right-to-use Assets 123181647.91 30795411.98 147881641.51 36970410.38
Total 147620100.98 34461179.94 171994944.49 40587405.83
(3) Deferred income tax asset or liabilities stated with net amount after offsetting
In CNY
Amount mutually offset Amount mutually offset
Ending balance of the Opening balance of the
between the deferred between the deferred
deferred income tax deferred income tax
Items income tax assets and income tax assets and
asset or liabilities after asset or liabilities after
liabilities at the end of the liabilities at the beginning
offsetting offsetting
reporting period of the reporting period
Deferred income tax
29552036.1586798187.2435350891.8081233274.65
asset.Deferred income tax
29552036.154909143.7935350891.805236514.03
liability
(4) Statement of deferred income tax asset not recognized
In CNY
Items Ending balance Opening balance
Offsetable loss 52429164.08 54139145.45
Provision for impairment of assets 15923669.81 15218179.77
Total 68352833.89 69357325.22
123FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
(5) Unrecognized deferred income tax asset available for offsetting loss is going to expire in the following years
In CNY
Amount at the end of the
Year Amount at the year beginning Remarks
reporting period
20210.000.00
20220.000.00
20230.00149750.18
202410124068.0311684299.22
202518449678.5018449678.50
202623855417.5523855417.55
Total 52429164.08 54139145.45
31. Other non-current assets
In CNY
Ending balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Advance payment
42617285.900.0042617285.9042680753.780.0042680753.78
for long term assets
Total 42617285.90 0.00 42617285.90 42680753.78 0.00 42680753.78
32. Short term borrowings
(1) Classification of short-term borrowings
In CNY
Items Ending balance Opening balance
Secured loan 12178305.45 15737928.76
Credit loan 440000000.00 250000000.00
Undue interest payable 415555.56 256666.67
Total 452593861.01 265994595.43
(2)Short-term borrowings overdue but still remaining outstanding
Inapplicable
33. Transactional financial liabilities
Inapplicable
34. Derivative financial liabilities
Inapplicable
124FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
35. Notes payable
In CNY
Category Ending balance Opening balance
Commercial acceptance bills 582928.10 21223.10
Total 582928.10 21223.10
The total amount of due but outstanding notes payable at the end of the reporting period is CNY 0.00.
36. Accounts payable
(1) Presentation of accounts payable
In CNY
Items Ending balance Opening balance
Payment for goods 175600153.08 232841934.81
Payment for materials 22612850.20 20513993.11
Engineering payment payable 1181651.95 1232967.42
Total 199394655.23 254588895.34
(2) Significant accounts payable with age exceeding 1 year
Inapplicable
37. Advance receipt
(1) Statement of advances from customers
In CNY
Items Ending balance Opening balance
Rent received in advance 7011421.98 11025664.72
Total 7011421.98 11025664.72
(2) Significant advances from customers with age exceeding 1 year
Inapplicable
38. Contract liabilities
In CNY
Items Ending balance Opening balance
Payment for goods 22785751.84 22505426.65
Total 22785751.84 22505426.65
The amount involved in the significant change of the book value and the cause during the reporting period
Inapplicable
125FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
39. Payroll payable to the employees
(1) Presentation of payroll payable to the employees
In CNY
Increase in the reporting Decrease in the reporting
Items Opening balance Ending balance
period period
I. Short term
134696286.49308998487.47340364871.41103329902.55
remuneration
II. Post-employment
benefit program - defined 9463874.19 25913498.96 23163574.14 12213799.01
contribution plan.III. Dismissal benefit 1775989.38 2286057.29 3111996.50 950050.17
Total 145936150.06 337198043.72 366640442.05 116493751.73
(2) Presentation of short term remuneration
In CNY
Increase in the reporting Decrease in the reporting
Items Opening balance Ending balance
period period
1. Salaries bonus
133818692.76277258207.61308464975.29102611925.08
allowances and subsidies
2. Staff’s welfare 708.80 5614697.05 5612905.85 2500.00
3. Social security
20620.6611965465.7011948966.4037119.96
premium
Including: medical
20620.6611187569.7611171364.6036825.82
insurance premium
Work injury
403974.05403679.91294.14
insurance
Maternity
373921.89373921.89
Insurance
4.Housing accumulation
27104.009935136.479938552.4723688.00
fund
5. Trade union fund and
829160.274224980.644399471.40654669.51
staff education fund
Total 134696286.49 308998487.47 340364871.41 103329902.55
(3) Presentation of the defined contribution plan
In CNY
Increase in the reporting Decrease in the reporting
Items Opening balance Ending balance
period period
1. Basic endowment
226815.5521911076.3921940885.43197006.51
insurance premium
2. Unemployment
624795.71623900.59895.12
insurance premium
3. Contribution to the
9237058.643377626.86598788.1212015897.38
enterprise annuity
126FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
scheme
Total 9463874.19 25913498.96 23163574.14 12213799.01
40. Taxes payable
In CNY
Items Ending balance Opening balance
Value-added tax 46261358.11 46711341.16
Enterprise income tax 15812596.69 15663227.68
Individual income tax 892279.50 1568912.16
Urban maintenance and construction tax 580674.96 1624353.62
Education Surcharge 335024.69 1161292.58
Others 3256596.89 1040752.81
Total 67138530.84 67769880.01
41. Other payables
In CNY
Items Ending balance Opening balance
Dividends payable 6324013.97 5015026.30
41. Other payables 159529884.77 162793733.65
Total 165853898.74 167808759.95
(1) Interest payable
Inapplicable
(2) Dividend payable
In CNY
Items Ending balance Opening balance
Dividends of common shares 6324013.97 5015026.30
Total 6324013.97 5015026.30
Other notes including that if significant dividends payable have not been paid for more than 1 year it is necessary to
disclose the reasons for non-payment：
Inapplicable
(3) Other payables
1) Other payments stated based on nature of fund
In CNY
Items Ending balance Opening balance
Cash pledge or cash deposit 32710186.12 33536237.44
Fund for shop-front activities 29795358.41 19208694.86
127FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Refurbishment 8492347.70 10201524.91
Obligation of repurchase of restricted shares 50759806.16 60585678.92
Others 37772186.38 39261597.52
Total 159529884.77 162793733.65
2) Other payables in significant amount and with aging over 1 year
In CNY
Items Ending balance Cause of failure in repayment or carry-over
Deposit for property rent 10503250.06 Settlement not due yet
Total 10503250.06
42. Held-for-sale liabilities
Inapplicable
43. Non-current liabilities due within a year
In CNY
Items Ending balance Opening balance
Long-term liabilities due within a year 3660090.00 3924900.00
Long-term rent liabilities due within one year 73996168.23 83025006.35
Total 77656258.23 86949906.35
44. Other current liabilities
In CNY
Items Ending balance Opening balance
Pending output VAT 2623083.96 2798738.32
Total 2623083.96 2798738.32
Increase/decrease of the short term bonds payable:
Inapplicable
45. Long-term Loan
(1) Classification of Long-term Borrowings
In CNY
Items Ending balance Opening balance
Pledge loan 3660090.00 3924900.00
Less: Long-term borrowings due within 1
-3660090.00-3924900.00
year
Notes to classification of long term borrowings:
As of June 30 2022 the book value of the fixed assets of the Company used for loan collateral was CNY 10889815.89.Other notes including the interest rate interval: the interest rate for the borrowings was 3%.
128FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
46. Bonds Payable
(1) Bonds payable
Inapplicable
(2) Increase/Decrease of bonds payable (excluding other financial instruments classified as financial liabilities
such as preferred shares perpetual bonds etc.)
Inapplicable
(3) Note to the conditions and time of share conversion of convertible company bonds
Inapplicable
(4) Note to other financial instruments classified as financial liabilities
Inapplicable
47. Rent liabilities
In CNY
Items Ending balance Opening balance
Within 1 year 66427767.95 87412539.35
1-2 years 44983744.95 45978062.22
2-3 years 14188991.93 13813526.70
Over 3 years 5281039.63 7720317.07
Less: Unrecognized financing expenses -5645239.55 -6980716.89
Long-term rent liabilities due within one year -73996168.23 -83025006.35
Total 51240136.68 64918722.10
Long-term accounts payable
(1) Long term accounts payable stated based on the nature
Inapplicable
(2) Special accounts payable
Inapplicable
129FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
49. Long term payroll payable to the employees
(1) Statement of long term payroll payable to the employees
Inapplicable
(2) Change of defined benefit plans
Inapplicable
50. Projected liabilities
Inapplicable
51. Deferred income
In CNY
Increase in the Decrease in the
Items Opening balance Ending balance Cause of formation
reporting period reporting period
Asset-related
For the detail refer
government 1792833.90 0.00 0.00 1792833.90
to the following table
subsidies
Income-related
For the detail refer
government 0.00 250000.00 0.00 250000.00
to the following table
subsidies
Total 1792833.90 250000.00 0.00 2042833.90
Items involving government subsidies:
In CNY
Amount
Amount
Amount of counted Amount
counted
newly to the offsetting Related
to the
added non-oper costs and with
Opening other Other Ending
Liabilities subsidy in ating expenses assets/rel
balance income changes balance
the income in in the ated with
in the
reporting the reporting income
reporting
period reporting period
period
period
Special
purpose
fund of
Related
Shenzhen
390123.15 390123.15 with
industrial
assets
design
developmen
t
Funding
project for
Related
construction
631980.39 631980.39 with
of enterprise
assets
technology
center
130FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
designated
by the state
Special
purpose
fund for the
Related
Industry and
770730.36 770730.36 with
Informationi
assets
zation at
Provincial
Level
The fifth
batch of key
technology
research
projects Related
assigned by 0.00 250000.00 250000.00 with
the State income
Commission
of Science
and
Technology
52. Other non-current liabilities
Inapplicable
53. Capital stock
In CNY
Increase / Decrease (+/ -)
Shares Opening balance Ending balance
New issuing Bonus shares converted from Others Sub-total
reserve
Total Shares 426051015.00 0.00 0.00 0.00 0.00 0.00 426051015.00
54. Other equity instruments
(1) Basic information on the outstanding other financial instruments including preferred shares perpetual bonds
etc. at the end of the reporting period
Inapplicable
(2)Movement of the outstanding financial instruments including preferred shares perpetual bonds etc. at the end
of the reporting period
Inapplicable
55. Capital reserve
In CNY
Items Opening balance Increase in the reporting Decrease in the reporting Ending balance
131FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
period period
Capital premium (capital
1010108533.814231031.4015043.171014324522.04
stock premium)
Other capital reserve 30799660.32 5611740.66 4231031.40 32180369.58
Total 1040908194.13 9842772.06 4246074.57 1046504891.62
Other notes including the note to its increase/decrease and the cause(s) of its movement in the reporting period:
(1) During the reporting period the services of the incentive objects obtained by the Company were included in the relevant
costs or expenses and the capital reserve increased by CNY 4629604.79 accordingly.
(2) The 4th session of the Tenth Board of Directors held on December 28 2021 reviewed and approved the Proposal on
the Release Conditions having been Satisfied for the Second Release Period of 2018 Restricted A-Share Incentive
Scheme (Phase I). Differences caused by fair value different when unlock the restricted shares between CIT deducted
amount and cost or expenses recognized in vesting period increased the capital reserve by CNY 982135.87. Meanwhile
the reclassification of capital reserves was adjusted for the unlocked part other capital reserves decreased by CNY
4231031.40 and capital premium increased by CNY 4231031.40.
(3) The 2nd session of the Tenth Board of Directors held on October 25 2021 and 2021 5th Extraordinary General Meetingheld on November 30 2021 reviewed and approved the “Proposal for the Repurchase of Partial Domestically ListedForeign Shares in the Company (B-shares)”. in the first half year of 2022，the Company repurchased its own shares
through a centralized bidding method with the special account for the securities repurchased at expense equivalent to CNY
15043.17 which has written off capital reserve amounting to CNY 15043.17.
56. Treasury shares
In CNY
Increase in the reporting Decrease in the reporting
Items Opening balance Ending balance
period period
Decrease of the
repurchase of the 0.00 50252831.88 0.00 50252831.88
registered capital
Payment for restricted
60585678.920.006996855.9653588822.96
shares
Total 60585678.92 50252831.88 6996855.96 103841654.84
Other notes including the note to its increase/decrease and the cause(s) of its movement in the reporting period:
(1) During the reporting period，the Company repurchased accumulatively 7987217 shares of the Company's B-shares
through a centralized bidding method and paid HKD 61438781.55 (with trading cost exclusive) which was equivalent to
CNY 50252831.88 equal to CNY 50252831.88 after conversion. As a result the treasury stock increased by CNY
50252831.88.
(2) As stated on Note VII.55(2) based on the authorization of the General Meeting the Board of Directors lifted restriction
for 114 incentive individuals. The corresponding shares may be traded on February 7 2022 of which the cash dividend
decreased treasury shares by CNY4468408.56.
132FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
(3) The Company's 2021 equity distribution plan was reviewed and approved at the 2021 annual general meeting held on
May 13 2022 and the cash dividends corresponding to the remaining restricted shares were reduced by CNY
2528447.40 for treasury shares.
57. Other comprehensive income
In CNY
Amount incurred in the reporting period
Less: the
amount
Less: the
counted to
amount
the other
counted to
comprehen
the profit
sive
and loss Attributa
Amount income
during the Attributable to ble to
incurred before during the Less:
Items Opening balance previous the parent minority Ending balance
income tax in previous Income tax
period was company after sharehol
the reporting period was expense
transferred tax ders
period transferred
to the profit after tax
to the
and loss of
retained
the
earnings of
reporting
the
period.reporting
period.I. Other
comprehensiv
e income
which cannot
0.000.000.000.00
be
re-classified
into profit and
loss
Where:
Change of the
beneficial plan 0.00 0.00 0.00 0.00
remeasured
for setting
Other
comprehensiv
e income
which can be
0.000.000.000.00
converted into
profit and loss
based on the
equity method
Movement of
the fair value
of the 0.00 0.00 0.00 0.00
investment in
other equity
instruments
0.000.000.000.00
133FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Movement of
the fair value
of the
Company’s
own credit risk
II. Other
comprehensiv
e income
which shall be -7658346.40 424855.72 424855.72 -7233490.68
re-classified
into profit and
loss
Conversio
n difference in
foreign -7658346.40 424855.72 424855.72 -7233490.68
currency
statements
Total other
comprehensiv -7658346.40 424855.72 424855.72 -7233490.68
e income
58. Special reserve
In CNY
Increase in the reporting Decrease in the reporting
Items Opening balance Ending balance
period period
Safety production costs 1062731.13 600000.00 108753.56 1553977.57
Total 1062731.13 600000.00 108753.56 1553977.57
59. Surplus Reserve
In CNY
Increase in the reporting Decrease in the reporting
Items Opening balance Ending balance
period period
Statutory surplus reserve 213025507.50 0.00 0.00 213025507.50
Discretionary surplus reserve 61984894.00 0.00 0.00 61984894.00
Total 275010401.50 0.00 0.00 275010401.50
Note to surplus reserve including the note to its increase/decrease and the cause(s) of its movement in the reporting
period:
According to the Company Law and the Articles of Association the Company provided statutory surplus reserve based on
10% of the net profit. When the accumulative amount of the statutory surplus reserve exceeds 50% of the Company’s
registered capital no such reserve shall be provided any longer.After provision of the statutory surplus reserve the Company may provide free surplus reserve. With authorization the free
surplus reserve may be used to make up for the deficits of previous years or increase capital stock.
134FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
60. Retained earnings
In CNY
Items Reporting period Previous period
Retained earnings at the end of the previous period before the
1338444326.091164490911.51
adjustment
Total retained earnings under adjustment at the beginning of
-11188268.01
the reporting year (adjustment up + adjustment down -)
After adjustment: Retained earnings at the beginning of the
1338444326.091153302643.50
reporting period
Plus: Net profit attributable to the parent company’s owner in
140692784.29387840282.95
the report period
Less: Provision of statutory surplus public reserve 28478534.63
Dividends of common shares payable 125419139.40 174220065.73
Retained earnings at the end of the reporting period 1353717970.98 1338444326.09
Statement of adjustment of retained earnings at the beginning of the reporting period:
1). The amount involved in the retroactive adjustment according to the Enterprise Accounting Standards and the relevant
new provisions influencing the retained earnings at the beginning of the reporting period was CNY 0.00.
2). The amount involved in change of the accounting policy influencing the retained earnings at the beginning of the
reporting period was CNY 0.00.
3). The amount involved in correction of the significant accounting errors influencing the retained earnings at the beginning
of the reporting period was CNY 0.00.
4). The amount involved in change of the consolidation scope caused by the common control influencing the retained
earnings at the beginning of the reporting period was CNY 0.00.
5). The total amount involved in other adjustments influencing the retained earnings at the beginning of the reporting period
was CNY 0.00.
61. Operation Income and Costs
In CNY
Amount incurred in the reporting period Amount incurred in the previous period
Items
Income Cost Income Cost
Principal business 2176850503.24 1373173952.09 2770803774.51 1736967152.08
Other businesses 6720245.87 490608.32 6715746.83 1182329.62
Total 2183570749.11 1373664560.41 2777519521.34 1738149481.70
62. Business Taxes and Surcharges
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Consumption tax 1080093.60 726813.41
Urban maintenance and construction tax 4471185.46 5877927.84
Education Surcharge 3176217.12 4121272.93
135FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Real estate tax 3617599.55 3567272.30
Land use tax 202038.96 197939.71
Tax on using vehicle and boat 2880.00 2520.00
Stamp duty 1271846.47 1641839.17
Others 379332.17 320376.10
Total 14201193.33 16455961.46
63. Sales expenses
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Payroll to Employees 207143891.55 213043074.52
Shopping mall and rental fees 76494295.56 129400920.28
Advertising exhibition and market promotion
57874652.6291568222.91
fee
Depreciation and amortization 107506179.52 92926914.28
Packing expenses 4439070.05 4481736.64
Water & power supply and property
11198105.5510882939.50
management fee
Freight 2865405.58 4242070.29
Office expenses 2712847.35 3919959.69
Business travel expenses 2022337.58 3520062.70
Business entertainment 1346935.04 1950807.85
Others 4202320.36 5693343.97
Total 477806040.76 561630052.63
64. Administrative expenses
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Payroll to Employees 90844037.52 90780253.80
Depreciation and amortization 11956926.63 12421579.17
Business travel expenses 610091.19 1799515.00
Office expenses 2112092.81 1767686.85
Service fee to intermediary agencies 1632375.61 1662615.14
Water electricity property and rent 1529714.92 3315987.84
Business entertainment 288878.74 616327.45
Trucks and freight 631799.40 776804.47
Communication fee 376723.40 431608.09
Others 6733024.47 7819288.04
Total 116715664.69 121391665.85
65. R & D expenditures
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Payroll to employees 19230230.93 18674577.25
Sample and material charges 797464.23 728873.08
Cost of moulds 98716.00 296524.07
Depreciation and amortization 2501878.19 3117098.99
Technical cooperation fee -136897.08 657671.10
136FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Others 2535321.58 2895320.19
Total 25026713.85 26370064.68
66. Financial expenses
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Interest payment 9731247.68 14778321.69
Less: capitalized interest
Less: Interest income 1981825.39 2153626.51
Exchange gain & loss -1648258.56 -9312.50
Service charges and miscellaneous 5776243.25 8161891.03
Total 11877406.98 20777273.71
67. Other income
In CNY
Source of arising of other income Amount incurred in the reporting period Amount incurred in the previous period
Government subsidies 13369782.95 11662934.28
68. Return on investment
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Income from long term equity investment
2462626.521629328.24
based on equity method
Total 2462626.52 1629328.24
69. Net exposure hedge income
Inapplicable
70. Income from change of the fair value
Inapplicable
71. Loss from impairment of credit
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Provision for bad debt of other receivables 174478.00 -173755.96
Loss from bad debt of notes receivable 463943.28 -484421.80
Loss from bad debt of accounts receivable -636572.43 -1377059.19
Total 1848.85 -2035236.95
72. Loss from impairment of assets
In CNY
137FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Items Amount incurred in the reporting period Amount incurred in the previous period
I. Loss from impairment of assets 0.00 0.00
II. Loss from price falling of inventory and
loss from impairment of contract -348218.69 -1226362.68
performance costs
Total -348218.69 -1226362.68
73. Income from disposal of assets
In CNY
Source of income from disposal of assets Amount incurred in the reporting period Amount incurred in the previous period
Profit or loss from disposal of fixed assets -14180.88 -73807.46
Profit or loss from disposal of right-to-use
-801840.280.00
assets
74. Non-operating income
In CNY
Amount incurred in the reporting Amount incurred in the previous Amount counted to the current
Items
period period non-operating gain and loss
Compensation 146132.71 3475.00 146132.71
Disposal of account payable
0.40124191.890.40
impossible to be paid
Others 62454.77 144301.38 62454.77
Total 208587.88 271968.27 208587.88
Government subsidy counted to the current profit and loss:
Inapplicable
75. Non-operating expenditure
In CNY
Amount incurred in the reporting Amount incurred in the previous Amount counted to the current
Items
period period non-operating gain and loss
Outward donation 0.00 100000.00 0.00
Fine and overdue fine 15080.06 0.00 15080.06
default fine 693689.72 0.00 693689.72
Others 117127.58 759659.12 117127.58
Total 825897.36 859659.12 825897.36
76. Income tax expense
(1) Statement of income tax expenses
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Income tax expenses in the reporting period 43213735.62 61394301.15
Deferred income tax expense -5574641.83 7155100.91
Total 37639093.79 68549402.06
138FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
(2) Process of adjustment of accounting profit and income tax expenses
In CNY
Items Amount incurred in the reporting period
Total profit 178331878.08
Income tax expense calculated based on the statutory/ applicable tax
44582969.52
rate
Influence of different tax rates applicable to subsidiaries -4809328.68
Influence of the non-taxable income -615656.63
Influence of the non-offsetable costs expenses and loss 1678343.82
The effect of using deductible losses of deferred income tax assets
-484703.66
that have not been recognized in the previous period
Influence from the addition of the R & D expenses upon deduction of
-2712530.58tax payment (to be stated with “-“)
76. Income tax expense 37639093.79
77. Other comprehensive income
For the detail refer to Note VII. 57.
78. Cash Flow Statement Items
(1) Other operation activities related cash receipts
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Collateral and deposit 6532789.76 5023790.54
Government subsidies 13193456.48 10827370.77
Commodity promotion fee 4611388.01 6760506.27
Interest income 1985621.79 2125691.94
Reserve 2740310.90 2279469.79
Others 8516510.57 11749975.61
Total 37580077.51 38766804.92
(2) Other operation activities related cash payments
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Collateral and deposit 7419015.67 13205523.62
Reserve 5082764.84 10265576.39
Duration Expenses 138375768.78 220464795.10
Others 4512408.32 143644.97
Total 155389957.61 244079540.08
(3) Other operation activities related cash receipts
Inapplicable
139FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
(4) Other operation activities related cash payment
Inapplicable
(5) Other financing activities related cash receipts
Inapplicable
(6) Other financing activities related cash payment
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Rent cash flow out 63385293.68 47957294.77
Payment for repurchase of shares 53318818.77 6106577.91
Total 116704112.45 54063872.68
79. Supplementary information of the cash flow statement
(1) Supplementary information of the cash flow statement
In CNY
Supplementary information Amount in the reporting period Amount in the previous period
1 Adjustment of net profit into cash flows of
operating activities:
Net profit 140692784.29 233564783.83
Plus: Provision for impairment of assets 346369.84 3261599.63
Depreciation of fixed assets depletion
of oil and gas asset depreciation of 20129448.57 21116190.64
productive biological asset
Depreciation of use right assets 57747319.25 48686092.09
Amortization of intangible assets 2750043.18 3442875.49
Amortization of long term expenses to
52053443.1946436064.35
be apportioned
Loss (income is stated in “-”) from
disposal of fixed assets intangible assets 816021.16 73807.46
and other long term assets
Loss on scrapping of fixed assets
(profit is stated with “-”)
Loss from change of fair value (profit
is stated with “-”)
Financial expenses (income is stated
8082989.1214769009.19
with “-”)
Investment loss (income is stated with
-2462626.52-1629328.24
“-”)
Decrease of the deferred income tax
-5564912.606385102.30
asset (increase is stated with “_”)
Increase of deferred income tax
-327370.24769998.61
liability (decrease is stated with “-”)
140FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Decrease of inventories (Increase is
74801604.17-83529356.74
stated with “-”)
Decrease of operative items
-23794469.22-31249035.35
receivable (Increase is stated with “-”)
Increase of operative items payable
-46884380.59-56943239.33
(Decrease is stated with “-”)
Others
Net cash flows arising from operating
278386263.60205154563.93
activities
2 Significant investment and fund-raising
activities with no cash income and expenses
involved:
Capital converted from liabilities
Convertible company bonds due within a
year
Fixed assets under financing lease
3 Net change in cash and cash equivalents:
Ending cash balance 393873930.55 234840156.69
Less: Opening balance of cash 210254737.14 353057285.71
Plus: Ending balance of cash equivalent
Less: Opening balance of cash equivalent
Net increase of cash and cash equivalents 183619193.41 -118217129.02
(2) Net cash paid for acquisition of subsidiary in the reporting period
Inapplicable
(3) Net cash received from disposal of subsidiary in the reporting period
Inapplicable
(4) Composition of cash and cash equivalents
In CNY
Items Ending balance Opening balance
I. Cash 393873930.55 210254737.14
Including: Cash in stock 175028.83 108612.08
Bank deposit available for payment at
392393331.66188908798.10
any time
Other monetary fund used for
1305570.0621237326.96
payment at any time
II. Cash equivalents
Including: Bond investment due within three
months
III. Ending balance of cash and cash
393873930.55210254737.14
equivalents
Including: cash and cash equivalents 4702798.19 1724651.93
141FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
restricted for use from the parent company or
other subsidiaries of the Group
80. Notes to items of statement of change in owner’s equity
Inapplicable
81. Assets restricted in ownership or use right
In CNY
Items Book value at the end of the reporting period Cause of restriction
Notes receivable 12178305.45 Notes discounted
24. Fixed asset 10889815.89 Bank mortgage
Total 23068121.34
82. Foreign currency monetary items
(1) Foreign currency monetary items
In CNY
Ending balance of foreign Ending balance of Renminbi
Items Conversion rate
currency converted
Monetary capital
Including: USD 3083565.75 6.7114 20695043.17
Euro 372721.34 7.0084 2612180.24
HKD 930062.14 0.8552 795379.84
SF 661407.08 7.0299 4649625.63
Accounts receivable
Including: USD 770328.27 6.7114 5169981.15
Euro 61459.30 7.0084 430731.36
HKD 1058093.59 0.8552 904871.06
SF 10858.62 7.0299 76335.05
Long-term Loan
Including: USD
Euro
HKD
Accounts payable
Including: USD 1019.00 6.7114 6838.92
HKD 1576987.13 0.8552 1348623.62
SF 131940.99 7.0299 927531.99
Other receivables
Including: HKD 116645.42 0.8552 99754.00
Other payables
Including: USD 5759.05 6.7114 38651.29
Euro 3043.21 7.0084 21328.03
HKD 14507.16 0.8552 12406.38
SF 37070.78 7.0299 260603.85
Non-current liabilities due within
142FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
a year
Where: SF 520646.10 7.0299 3660090.00
(2) Note to overseas operating entities including important overseas operating entities which should be
disclosed about its principal business place function currency for bookkeeping and basis for the choice. In case
of any change in function currency the cause should be disclosed.For the principal business place function currency for bookkeeping for key oversease business entities refer to Note V.4.
83. Hedging
Inapplicable
84. Government subsidies
(1) Basic information of government subsidies
In CNY
Amount counted to the
Category Amount Items presented
current profit and loss
Subsidy for stabilizing employment 282569.53 Other income 282569.53
Project subsidy to technology support
institutions for standardization with the
490347.00 Other income 490347.00
special fund in the field of standards in
Shenzhen
The 2nd batch of subsidies for the industrial
270000.00 Other income 270000.00
design development support program
Refund of the service charge for individual
724853.24 Other income 724853.24
income tax
Subsidy for the registered trade marks 1000.00 Other income 1000.00
Social security allowance 154548.92 Other income 154548.92
Others 16617.26 Other income 16617.26
Award for the growth of retail sales
(turnover) from Commerce Bureau of 5000000.00 Other income 5000000.00
Shenzhen Municipality
Financial support for the steady growth of
commerce from Nanshan District Bureau of 1709700.00 Other income 1709700.00
Industry and Information Shenzhen
Financial support for the commercial
circulation from Nanshan District Bureau of 1150000.00 Other income 1150000.00
Industry and Information Shenzhen
Financial support for the COVID-19 control
from Nanshan District Bureau of Industry 500000.00 Other income 500000.00
and Information Shenzhen
Government subsidy as the financial
1210800.00 Other income 1210800.00
support for steady growth of commerce
Subsidy as financial support to the
improvement of the business outlay
150000.00 Other income 150000.00
allocation in the commercial circulation
industry
Government subsidy for industrialization
100000.00 Other income 100000.00
and informationization in Nanshan District
Subsidy for employee training 285500.00 Other income 285500.00
143FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Rent subsidy for small and micro
enterprises during the COVID-19 Epidemic
10000.00 Other income 10000.00
from Yuehai Neighborhood of Nanshan
District
Financial support for the cultivation of the
500000.00 Other income 500000.00
high and new technology division
Special government subsidy for the
1000000.00 Other income 1000000.00
technological breakthrough activities
Allowance from the standards field of
60347.00 Other income 60347.00
Shenzhen
Financial support for hi-tech enterprise
cultivation from the high and new
200000.00 Other income 200000.00
technology division of the science and
technology innovation commission
Subsidy for the fifth batch of key technology
research projects assigned by the State 250000.00 Deferred income
Commission of Science and Technology
Subsidy for stabilizing enterprises from the
Bureau of Industrialization and 50000.00 Other income 50000.00
Informationization of Nanshan District
(2) Refunding of the government subsidies
In CNY
Items Amount Cause
Partial fund of the award of the economic
contribution by head offices refunded from
496500.00 Excessive allocation
the National Development and Reform
Commission of Shenzhen Municipality
85. Others
Inapplicable
VIII. Change in consolidation scope
1. Business combination involving entities not under common control
(1) Consolidation of enterprises not under common control during the reporting period
Inapplicable
(2) Consolidation cost and goodwill
Inapplicable
(3) Purchasee's distinguishable assets and liabilities as at the date of purchase
Inapplicable
144FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
(4) Profit or loss of the equity held before the date of purchase arising from re-measurement based on the fair
value
Does there exist any transaction in which the enterprise consolidation is realized step by step through several transactions
and the control power is obtained within the reporting period.No
(5) Note to the consolidation consideration or the fair value of the distinguishable assets and liabilities of the
purchasee which cannot be reasonably identified as at the date of purchase or at the end of the very period of
consolidation
Inapplicable
(6) Other note
Inapplicable
2. Business combination involving entities under common control
(1) Consolidation of enterprises under common control during the reporting period
Inapplicable
(2) Consolidation cost
Inapplicable
(3) Book value of the consolidatee's assets and liabilities as at the date of consolidation
Inapplicable
3. Counter purchase
Inapplicable
4. Disposal of subsidiaries
Does there exist any such situation that a single disposal may cause the control power over the investment in a subsidiary
lost?
No
Does there exist any such situation that disposal in steps through a number of transactions may cause the control power
over the investment in a subsidiary lost during the reporting period?
No
5. Change of consolidation scope due to other reason
Inapplicable
145FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
6. Others
Inapplicable
IX. Equity in other entities
1. Equity in a subsidiary
(1) Composition of an enterprise group
Main business Place of Nature of Shareholding proportion Way of
Subsidiaries
location registration business Direct Indirect acquisition
Shenzhen
Harmony World Establishment or
Shenzhen Shenzhen Commerce 100.00%
Watches Center investment
Co. Ltd.Shenzhen FIYTA
Precision Establishment or
Shenzhen Shenzhen Manufacture 99.00% 1.00%
Technology Co. investment
Ltd.FIYTA (Hong Establishment or
Hong Kong Hong Kong Commerce 100.00%
Kong) Limited investment
Shenzhen
Harmony Establishment or
Shenzhen Shenzhen Commerce 100.00%
E-Commerce investment
Limited
Shenzhen FIYTA
Technology Establishment or
Shenzhen Shenzhen Manufacture 100.00%
Development investment
Co. Ltd.Shiyuehui
Boutique Establishment or
Shenzhen Shenzhen Commerce 100.00%
(Shenzhen) Co. investment
Ltd.Emile Chouriet
Establishment or
(Shenzhen) Shenzhen Shenzhen Commerce 100.00%
investment
Limited
FIYTA Sales Co. Establishment or
Shenzhen Shenzhen Commerce 100.00%
Ltd. investment
Liaoning Consolidation of
Hengdarui enterprises
Shenyang Shenyang Commerce 100.00%
Commerce & under the
Trade Co. Ltd. common control
Business
combination
Montres
Switzerland Switzerland Manufacture 100.00% involving entities
Chouriet SA
not under
common control
Shenzhen
XUNHANG
Establishment or
Precision Shenzhen Shenzhen Manufacture 100.00%
investment
Technology Co.Ltd.Harmony World Sanya Sanya Commerce 100.00% Establishment or
146FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Watches Center investment
(Hainan) Ltd.Note to the proportion of shareholding in a subsidiary different from the proportion of voting power:
Inapplicable
Basis of holding less than a half of the voting power but still controlling the investee and holding more than a half of the
voting power but not controlling the investee:
Inapplicable
Basis of an important structurized entity being brought to the consolidation scope and being controlled:
Inapplicable
Basis of distinguishing an agent from consignor:
Inapplicable
(2) Important non-wholly-owned subsidiaries
Inapplicable
(3) Key financial information of important non-wholly-owned subsidiaries
Inapplicable
(4) Significant restriction on use of enterprise group’s assets and paying off the enterprise group’s liabilities
Inapplicable
(5) Financial support or other support provided to the structured entities incorporated in the scope of consolidated
financial statements
Inapplicable
2. Transaction with a subsidiary with the share of the owner’s equity changed but still under control
(1) Note to change in the share of the owner's equity in subsidiaries
Inapplicable
(2) Affect of the transaction on the minority equity and owner's equity attributable to the parent company
Inapplicable
147FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
3. Equity in joint venture arrangement or associates
(1) Important joint ventures or associates
Shareholding proportion Accounting
treatment
Main
Name of joint venture Place of Nature of method for
business
or associate registration business Direct Indirect investment in
location
joint ventures or
associates
Shanghai Watch
Shanghai Shanghai Commerce 25.00% Equity method
Industry Co. Ltd.Note to the proportion of the shareholding in a joint venture or an associate different from voting power therein:
Inapplicable
Basis of holding below 20% voting power but having significant influence or holding more than 20% voting power but not
having significant influence
Inapplicable
(2) Key financial information of important joint ventures
Inapplicable
(3) Key financial information of important associates
In CNY
Ending balance/amount incurred in the Opening balance/amount incurred in the
reporting period previous period
Current assets 158167622.54 143367298.98
Non-current assets 15374040.32 17537419.20
Total assets 173541662.86 160904718.18
Current liabilities 28750831.63 24124925.22
Non-current liabilities 0.00 1839467.79
Total liabilities 28750831.63 25964393.01
Minority shareholders’ equity
Equity attributable to the parent company’s
144790831.23134940325.17
shareholders
Share of net assets calculated according to
36197707.8133735081.29
the shareholding proportion
Adjustment events 21420524.02 21420524.02
-- Goodwill 21420524.02 21420524.02
-- Unrealized profit from the intracompany
transactions
-- Others
Book value of the equity investment in
57618231.8355155605.31
associates
Fair value of equity investments in associates
148FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
with public quotation
Turnover 65530729.89 71770916.04
Net profit 9850506.06 6517312.97
Net profit from operation termination
Other comprehensive income
Total comprehensive income 9850506.06 6517312.97
Dividends received from associates during
the year
(4) Financial information summary of unimportant joint ventures and associates
Inapplicable
(5) Note to significant restriction on the competence of a joint venture or an associate in transferring funds to the
Company
Inapplicable
(6) Excessive loss incurred to a joint venture or an associate
Inapplicable
(7) Unrecognized commitment in connection with investment in a joint venture
Inapplicable
(8) Contingent liabilities in connection with investment in joint ventures or associates
Inapplicable
4. Important joint operation
Inapplicable
5. Equity in the structurized entities not incorporated in the consolidated financial statements
Inapplicable
6. Others
Inapplicable
IX. Risk disclosure related to financial instrument
The major financial instruments of the Company primarily include cash at bank and on hand equity investments
borrowings accounts receivable accounts payables etc. The Company is exposed to risks from various financial
149FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
instruments in day-to-day operation mainly including credit risk liquidity risk and market risk. The risks in connection with
such financial instruments and the risk management policies adopted by the Company to mitigate such risks are
summarized as follows:
The Board of Directors is responsible for planning and establishing the risk management structure for the Company
developing risk management policies and the related guidelines across the Company and supervising the performance 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 covering many aspects such as market
risk credit risk and liquidity risk management. The Group regularly evaluates the market environment and changes in the
Company's operating activities to determine whether to update the risk management policy and system. 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 works closely with other business departments of the Company to identify
evaluate and avoid related risks. 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 investment and business portfolios and
formulates corresponding risk management policies to reduce the risks concentrated in a single industry a specific region
or a specific counterparty.
1. Credit risk
Credit risk refers to the risk of financial losses to the Company as a result of the failure of performance of contractual
obligations by the counterparties. The management has developed proper credit policies and continuously monitors credit
risk exposures.The Company has adopted the policy of transacting with creditworthy counterparties only. In addition the Company
evaluates the credit qualification of customers and sets up corresponding credit term based on the financial status of
customers the possibility of obtaining guarantees from third parties credit records and other factors such as current market
conditions. The Company monitors the balances and recovery of bills and accounts receivable and contract assets on a
continual basis. As for bad credit customers the Company will use the written reminders shorten the credit term or cancel
the credit term to ensure that the Company is free from material credit losses. In addition the Company reviews the
recovery of financial assets on each balance sheet date to ensure adequate expected credit loss provision is made for
relevant financial assets.The Company’s other financial assets include currency funds and other receivables. The credit risk relating to these
financial assets arises from the default of counterparties but the maximum exposure to credit risk is the carrying amount of
each financial asset in the balance sheet. The Company does not provide any other guarantee that may expose the
Company to credit risk.The monetary funds held by the Company are mainly deposited with financial institutions such as state-owned banks and
other large and medium-sized commercial banks. The management believes that these commercial banks have a higher
reputation and assets so there is no major credit risk and the Company would not have any significant losses caused by
the default by these institutions. The Company’s policy is to control the amount deposited with these famous financial
institutions based on their market reputation operating size and financial background to limit the credit risk amount of any
single financial institution.
150FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
As a part of its credit risk asset management the Company assesses the credit loss of receivables using aging. The
Company’s receivable and other receivables involve large amount of customers. Aging information can reflect the ability to
repay and risk of bad debt of these customers. The Company determined expected loss rate by calculating historical bad
debt rate for receivables with different aging based on historical data and also taking forecast of future economic condition
into consideration such as GDP growth rate state currency policy etc. For long-term receivables the Company assesses
expected credit loss reasonably by considering settlement period contracted payment terms debtor’s financial situation
and the economic situation of the debtor’s industry.As at June 30 2022 the carrying amount of related assets and corresponding ECL is as follows:
Aging Book balance Provision for impairment
Notes receivable 56457807.54 2602836.41
Accounts receivable 463429354.03 43793648.08
Other receivables 63094122.18 4245960.45
Total 582981283.75 50642444.94
As the Company’s customer base is large there exists no material credit concentration risk.As at June 30 2022 the balance of top 5 receivable accounts accounted for 33.18% of total accounts receivables (2021:
35.48%).
2. Liquidity risk
Liquidity risk refers to the risk of short of funds when the company performs its obligation of cash payment or settlement by
other financial assets. The Company’s subordinate member companies are responsible for their respective cash flow
projections. Based on the results thereof the subordinate financial management department continually monitors its
short-term and long-term capital needs at the company level to ensure adequate cash reserves; in the meantime
continually monitors the compliance with loan agreements and secures undertakings for sufficient reserve funds from major
financial institutions to address its short-term and long-term capital needs. Besides the Company mainly signs financing
agreements with banks that have business transactions to provide support to fulfill commercial bill obligation. As at 31
December 2021 the Company has financing facilities from several banks amounting to CNY2299.2099 million. Amongst
CNY 605.8707 million has already been used.As at 31 December 2021 the discounted contractual cash flows for financial liabilities and off-balance sheet guarantee that
presented in maturity are as follows:
Ending balance (CNY 10000)
Items
Within 1 year 1-2 years 2-3 years Over 3 years Total
Short term
45872.9045872.90
borrowings
35. Notes payable 58.29 58.29
Accounts payable 19939.47 19939.47
Other payables 16262.65 161.13 161.61 16585.39
Non-current
liabilities due within 366.01 366.01
a year
Total 82499.32 161.13 161.61 - 82822.05
151FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
3. Market Risks
1) Exchange rate risk
Except that the Company’s subsidiary in Hong Kong uses HKD as settlement currency and sub-subsidiary in Swiss used
CHF as settlement currency the principal places of operations of the Company are located in China and the major
businesses are settled in Renminbi. However the Company’s recognized foreign currency assets and liabilities as well as
the foreign currency transactions in the future (the functional currencies of foreign assets and liabilities as well as the
transactions are mainly HKD and SF) remain exposed to exchange rate risk
As at June 30 2022 the Renminbi equivalent of financial assets and financial liabilities denominated in foreign currencies
are as follows:
Ending balance
Items
HKD USD EURO SF Total
Financial asset
denominated in
foreign
currency:
Monetary capital 795379.84 20695043.17 2612180.24 4649625.63 28752228.89
Accounts
904871.065169981.15430731.3676335.056581918.61
receivable
Other receivables 99754.00 99754.00
Sub-total 1800004.90 25865024.33 3042911.60 4725960.68 35433901.50
Financial liabilities
denominated in
foreign
currency:
Accounts payable 1348623.62 6838.92 927531.99 2282994.53
Other payables 12406.38 38651.29 21328.03 260603.85 332989.55
Non-current
liabilities due 3660090.00 3660090.00
within a year
Sub-total 1361030.00 45490.20 21328.03 4848225.84 6276074.08
Sensitivity analysis:
As at June 30 2022 for financial assets and financial liabilities that denominated in foreign currency if Renminbi
appreciate or depreciate of 5% to foreign currency and other factors remain unchanged the net profit will decrease or
increase about CNY 1.2824 million(2021: CNY 0.485 million).
2) Interest rate risk
The interest rate risk of the Company mainly associates with bank borrowings. Floating rate financial liabilities expose the
Company to cash-flow interest rate risk while fixed rate financial liabilities expose the Company to fair-value interest rate
risk. The Company determines the comparative proportion of fixed rate contracts and floating rate contracts based on the
then market conditions.
152FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
The financial department of the Company continuously monitors the Company’s interest rate level. Rise of interest rates
may increase the cost of new interest-bearing liabilities and interest costs on the Company's outstanding interest-bearing
liabilities at variable rates and have a material adverse effect on the Company's financial results. The management may
make timely adjustments based on the latest market conditions to reduce interest rate risk.XI. Disclosure of Fair Value
1. Fair value at the end of the reporting period of the assets and liabilities measured based on the fair value
Inapplicable
2. Basis for determining the market price of the items measured based on the continuous and non-continuous first
level fair value
Inapplicable
3. Items measured based on the continuous or uncontinuous 2nd level fair value valuation technique as used
nature of important parameters and quantitative information
Inapplicable
4. Items measured based on the continuous or uncontinuous 3rd level fair value valuation technique as used
nature of important parameters and quantitative information
Inapplicable
5. Items measured based on the continuous 3rd level fair value sensitivity analysis on adjusted information and
unobservable parameters between the book value at beginning and end of the period
Inapplicable
6. In case items measured based on fair value are converted between different levels incurred in the current period
state the cause of conversion and determine conversion time point
Inapplicable
7. Change of valuation technique incurred in the current period and cause of such change
Inapplicable
8. Fair value of financial assets and financial liabilities not measured at fair value
Inapplicable
9. Others
Inapplicable
153FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
XII. Related parties and transactions
1. Details of the parent company of the Company
Shareholding ratio of Ratio of vote right of
Name of the parent
Place of registration Nature of business Registered capital the parent company the parent company
company
in the Company in the Company
AVIC IHL Shenzhen Investment 1166161996.00 38.25% 38.25%
Note to the parent company:
AVIC IHL holds 38.25% of the Company's voting rights and is the parent company of the Company. AVIC indirectly holds
91.14% equity in AVIC IHL so the actual controller of the Company is AVIC.
The eventual controller of the Company is State owned assets supervision and Administration Commission of the State
Council.
2. Subsidiaries of the Company
Refer to Note IX. 1 for details of subsidiaries of the Company.
3. Joint venture and association of the Company
Inapplicable
4. Other related parties
Names of other related parties Relationship between other related parties and the Company
AVIC Property Management Co. Ltd. (AVIC Property) An associate of the actual controller
Ganzhou CATIC 9 Square Commerce Co. Ltd. (Ganzhou 9 Square) An associate of the actual controller
AVIC City Property (Kunshan) Co. Ltd. (AVIC City Property (Kunshan) ) An associate of the actual controller
Jiujiang 9 Square Commerce Management Co. Ltd. (9 Square An associate of the actual controller
Commerce Management)
Shenzhen AVIC Building Technology Co. Ltd. (AVIC Building) An associate of the actual controller
Shenzhen AVIC Nanguang Elevator Co. Ltd. (AVIC Nanguang ) An associate of the actual controller
Shenzhen AVIC Security Service Co. Ltd. (AVIC Security Service) An associate of the actual controller
AVIC International Holding Corporation Controlled by the same party
Rainbow Digital Commercial Co. Ltd. (RAINBOW) Controlled by the same party
Shennan Circuit Co. Ltd. (Shennan Circuit) Controlled by the same party
Shenzhen AVIC Training Center (AVIC Training Center) Controlled by the same party
Gongqingcheng CATIC Cultural Investment Co. Ltd. (Gongqingcheng
Controlled by the same party
CATIC Cultural Investment)
AVIC Jonhon Optronic Technology Co.Ltd. (AVIC Optronic) Controlled by the same party
AVIC General Aircraft Co. Ltd. (AVIC General Aircraft) Controlled by the same party
AVIC Huadong Photoelectric Co. Ltd. (Huadong Photoelectric) Controlled by the same party
AVIC International Simulation Technology Service Co. Ltd. (AVIC
Controlled by the same party
International Simulation)
AVIC IHL (Zhuhai) Limited (AVIC IHL (Zhuhai)) Controlled by the same party
China National Aero-Technology Import & Export Corporation (CATIC) Controlled by the same party
AVIC Securities Co. Ltd. (AVIC Securities) Controlled by the same party
Guizhou Huayang Electric Co. Ltd. (GUIZHOU HUAYANG ELECTRIC) Controlled by the same party
154FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
5. Related transactions
(1) Related transactions of purchase and sale of commodities and supply and acceptance of labor services
Statement of purchase of commodities and acceptance of labor services
In CNY
Description of
Amount incurred in Transaction quota as Has it exceeded the Amount incurred in
Related party Related
the reporting period approved transaction quota the previous period
Transactions
Water & power
AVIC Property supply and property 5674190.55 No 5394418.03
management fee
Shopping mall
Rainbow Ltd. fees/purchase of 2205812.33 No 2662052.00
goods
Ganzhou 9 Square Shopping mall fees 89558.78 No 89105.10
AVIC City Property
Shopping mall fees 23584.90 No 0.00
(Kunshan)
70000000.00
9 Square Commerce
Management Co. Shopping mall fees 45264.34 No 42485.78
Ltd.AVIC Training
Training fee 0.00 No -2298.55
Center
AVIC Building Co. Refurbishment 0.00 No 32924.52
Elevator
AVIC Nanguang 0.00 No 122830.20
maintenance
Total 8038410.90 70000000.00 8341517.08
Statement of sales of goods/supply of labor services
In CNY
Description of Related Amount incurred in the reporting Amount incurred in the previous
Related party
Transactions period period
Rainbow Ltd. Products and labor services 29104305.23 42139011.64
Ganzhou 9 Square Products and labor services 13008.85 0.00
Sales of materials and supply of
Shennan Circuit 228541.46 1356891.42
services
Gongqingcheng CATIC Cultural
Sales of products 192621.21 307621.86
Investment
AVIC Optronic Sales of products 379058.98 346870.70
AVIC General Aircraft Sales of products 554207.98 17699.13
Huadong Photoelectric
Sales of products 21238.94 0.00
(Shanghai)
AVIC International Sales of products 0.00 8610.61
AVIC International Simulation Sales of products 0.00 60530.97
AVIC IHL (Zhuhai) Sales of products 0.00 10592.92
CATIC Sales of products 0.00 105929.20
GUIZHOU HUAYANG
Sales of products 50353.97 0.00
ELECTRIC
Total 30543336.62 44353758.45
Note to the related transactions of purchase and sale of commodities and supply and acceptance of labor services
The above transaction volume does not contain tax amount.
155FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
(2) Related entrusted management/contracted and mandatory management/contracting
Inapplicable
(3) Related lease
The Company as lessor:
In CNY
Categories of leasehold Rental income recognized in Rental income recognized in
Names of lessees
properties the current period the previous period
AVIC Property Housing 5220338.61 5721901.64
AVIC Securities Housing 705942.84 681600.00
Rainbow Ltd. Housing 309104.34 548843.48
CATIC Public Security Service
Housing 453202.26 399724.38
Co.The Company as lessee:
In CNY
Rental charges for
Variable rental payment not
short-term leases and
included in the Payment of the rental Increased right-to-use
leases of low-value assets Rent paid
measurement of the rent liability interest undertaken assets
Categories for simplified processing (if
liability (if applicable)
Names of of applicable)
lessor leasehold Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount
properties incurred in incurred in incurred in incurred in incurred in incurred in incurred in incurred in incurred in incurred in
the the the the the the the the the the
reporting previous reporting previous reporting previous reporting previous reporting previous
period period period period period period period period period period
Ganzhou 9 -458518.5 -458518.5
Housing 475674.30 475674.30 7302.99 26254.89
Square 6 6
AVIC City
Property Housing 75600.00 71999.99 3504.11 4670.69 -71606.28 -65702.28
(Kunshan)
9 Square
Commerce -124732.0
Housing 37267.73 167122.58 129495.42 123605.52 8636.46 8022.15 -116019.36
Manageme 8
nt Co. Ltd.Note to the related lease
The above transaction volume does not contain tax amount.
(4) Related guarantee
Inapplicable
(5) Borrowings and lendings among related parties
In CNY
Related party Borrowing amount Starting date Due date Note
Borrowed from
AVIC Finance 100000000.00 January 14 2022 February 9 2022
156FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
AVIC Finance 100000000.00 February 18 2022 February 25 2022
Lending
Inapplicable
(6) Assets assignment and liabilities reorganization of related parties
Inapplicable
(7)Remuneration to senior executives
Inapplicable
(8) Other related transactions
The Company’s deposit balance deposited with AVIC Finance at the end of the current year amounted to CNY
348755831.42 of which the deposit interest received during the year amounted to CNY 284223.67.
6. Accounts receivable from and payable to related parties
(1) Receivables
In CNY
Ending balance Opening balance
Project name Related party Provision for bad Provision for bad
Book balance Book balance
debt debt
Bank deposit AVIC Finance 348755831.42 147786041.19
Rainbow Ltd. 2632134.75 159544.92 3958751.41 244056.19
Shennan Circuit 50277.05 2513.85 161653.56 8082.68
Ganzhou 9 Square 2250.00 112.50 6000.00 300.00
AVIC Optronic 136121.85 9339.80 44718.38 2235.92
AVIC General
626255.0031312.751471466.0073573.30
Aircraft
Accounts receivable GUIZHOU
HUAYANG 39080.00 1954.00
ELECTRIC
Gongqingcheng
AVIC Cultural 23174.90 1158.75 10536.96 303.21
Investment
AVIC Property 751145.22 37557.26 0.30
Shennan Circuit 308698.46 15434.92
Notes receivable
AVIC Optronic 98016.45 187090.69 9354.53
Rainbow Ltd. 1072342.17 53617.11 1051020.00 52551.00
Ganzhou 9 Square 192064.00 9603.20 192064.00 9603.20
AVIC City Property
56000.002800.0056000.002800.00
(Kunshan)
Gongqingcheng
Other receivables AVIC Cultural 5500.00 275.00 5500.00 275.00
Investment
9 Square Commerce
Management Co. 50000.00 2500.00 50000.00 2500.00
Ltd.AVIC IHL 49.32 2.47 49.32 2.47
157FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
(2) Payables
In CNY
Project name Related party Ending book balance Opening book balance
Accounts payable AVIC Building Co. 41283.89
AVIC Property 2405584.31 2307322.31
AVIC Securities 247080.00 247080.00
AVIC Building Co. 14808.41 31270.67
Rainbow Ltd. 144651.82 198661.82
Other payables
CATIC Public Security Service
158620.80226603.44
Co.AVIC Nanguang 13958.43 34430.13
AVIC International 3600.00
AVIC Securities 123540.00 123540.00
Advance from customers
Rainbow Ltd. 16537.50
7. Related parties’ commitments
Inapplicable
8. Others
Inapplicable
XIII. Stock payment
1. General
In CNY
Total amount of various equity instruments granted by the Company
0.00
during the reporting period
Total amount of various equity instruments of the Company
1244421.00
exercisable during the reporting period
Total amount of various equity instruments of the Company expired
0.00
during the reporting period
The scope of the exercise price of stock options issued at the end of
Inapplicable
the reporting period and the remaining time of the contract
2018 A-share restricted stock incentive plan (phase I): the grant price
is 3.30 yuan / share (after the adjustment of equity distribution) the
limited sale period is 24 months after the grant date of January 11
2019 and the unlocking period is 36 months after the expiration of the
limited sale period (on the premise of meeting the established
unlocking conditions the unlocking ratio is 33.3% 33.3% and 33.4%
The scope of the exercise price of other equity instruments issued at respectively).the end of the reporting period and the remaining time of the contract 2018 A-share restricted stock incentive plan (phase II): the grant price
is 6.90 yuan / share (after the adjustment of equity distribution) the
limited sale period is 24 months after the grant completion date is
January 29 2021 and the unlocking period is 36 months after the
expiration of the limited sale period (on the premise that the
established unlocking conditions are met the unlocking ratio is
33.3% 33.3% and 33.4% respectively).
158FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
2. Stock payment for equity settlement
In CNY
Method for determining the fair value of equity instruments granted Closing price of the Company's stock on the grant date
Employee service period achievement rate of performance
Basis for determining the quantity of exercisable equity instruments
indicators and employee individual performance evaluation result
Cause of significant difference between the estimation of the
Inapplicable
reporting period and that of the previous period
Accumulated amount of the equity-settled share-based payment
26747736.51
counted to the capital reserve
Total expenses recognized in the equity-settled share-based payment
4629604.79
during the reporting period
3. Stock payment for cash settlement
Inapplicable
4. Correction and termination of stock payment
Inapplicable
5. Others
Inapplicable
XIV. Commitments and contingencies
1. Important commitments
Important commitments existing as at the balance sheet date
Lease contract that already signed or prepared to fulfill and its financial effect
Disclosure as lessee:
(1) Lease activities
The Company's lease categories are all housing and buildings including simplified short-term lease and leases other than
short-term rent where right-to-use assets and lease liabilities are recognized.
(2) Short-term rentals with simplified processing
Short-term leases are treated using simplified method. Short-term leases include lease term that is shorter than 12 month
and no renew options attached and leases that will be matured in 12 month after first adoption of CAS 21 – Lease.Short-term lease expenses charged to profit or loss was CNY2332300.37.
(3) Future potential cash outflows that does not included in lease liabilities
1) Variable lease payment
The lessee leased a lot of retail shops which contains variable lease payment terms in connection with sales.
159FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Many of the Company’s property lease contain variable lease payment terms in connection with sales. In most
circumstances the Company uses these terms to matches lease payment to shops that can generate more cash flows
lease payment. For standalone shops variable can reach 100% of all lease payment at most and that the scope of
percentage of sales used is quite large. In some circumstances variable payment terms include annual bottom payment
and upper limit.In the first half year of 2021 the amount of variable lease payments included in the current profit and loss was CNY
42557635.84.
2) Option to renew
Many lease contracts entered by the Company has option to renew. The Company has already estimated the option to
renew reasonably when determining lease terms in measuring lease liabilities.
3) Option to discontinue lease
Some of the lease contract entered by the Company has option to discontinue. The Company has already estimated the
option to discontinue reasonably when determining lease terms in measuring lease liabilities.
4) Residual value guarantee
The Company’s lease does not involve residual value guarantee.
5) Lease that the lessee has already made commitment but not yet started
The Company does not have lease that has already made commitment but not yet started.Disclosure as a lessor:
(1) Lease activities
The Company’s leases are all properties
(2) Risk management strategy of retaining rights over lease assets
To reduce risks of lease the Company normally asks lessee to pay rental in advance and collects 1-3 months rental as
deposit.
2. Contingencies
(1) Significant contingencies existing as at the balance sheet day
Inapplicable
(2) Important contingencies unnecessary to be disclosed but necessary to be explained
Inapplicable
3. Others
Inapplicable
160FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
XV. Events after balance sheet day
1. Significant non-adjustment events
Inapplicable
2. Profit distribution
Inapplicable
3. Sales return
Inapplicable
4. Note to other matters after the balance sheet date
Inapplicable
XVI. Other significant events
1. Correction of the accounting errors in the previous period
(1) Retroactive restatement
Inapplicable
(2) Prospective application
Inapplicable
2. Liabilities restructuring
Inapplicable
3. Replacement of assets
(1) Non-monetary assets exchange
Inapplicable
(2) Other assets exchange
Inapplicable
4. Annuity plan
Inapplicable
161FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
5. Discontinuing operation
Inapplicable
6. Segment information
(1) Basis for determining the reporting segments and accounting policy
Operating segments of the Company are identified on the basis of internal organization structure management
requirements and internal reporting system. An operating segment represents a component of the Company that satisfied
the following criteria simultaneously:
(1) Its business activities are engaged to earn revenue and incur expenses;
(2) Its operating results are regularly reviewed by the Company’s management to make decisions on resources allocation
and performance assessment;
(3) Its financial conditions operating results cash flow and related accounting information are available to the Company.
The Company determines the reporting segment based on the operating segment and the operating segment that meets
any of the following conditions is determined as the reporting segment:
(1)The segment income of the operating segment accounts for 10.00% or more of total income of all segments;
(2)The absolute amount of profits (losses) of the segment account for 10.00% or more of the higher of the absolute amount
of total profits of the profiting segment and the absolute amount of total losses of the unprofitable segment.
(2) Financial information of the reporting segments
Inapplicable
(3) In case there is no reporting segment or the total assets and liabilities of the reporting segments cannot be
disclosed explain the reason
The Company’s business is simple. The business mainly involves manufacturing and sales of watch. The management
considers the business as a whole in implementing management and assessing its performance. As a result no segment
information is disclosed in this financial statement.
(4) Other note
Inapplicable
7. Other significant transactions and matters that may affect investors' decision making
Inapplicable
162FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
8. Others
Inapplicable
XVII. Notes to the parent company’s financial statements
1. Accounts receivable
(1) Accounts receivable disclosed by category
In CNY
Ending balance Opening balance
Book balance Provision for bad debt Book balance Provision for bad debt
Categories
Provision Book value Provision Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Including
:
Accounts
receivable
for which
bad debt
6504763.6179493.
reserve 100.00% 325270.07 5.00% 136923.82 100.00% 7043.34 5.14% 129880.48
2215
has been
provided
based on
portfolios
Including
:
Accounts
receivable 6504763. 6179493.
100.00%325270.075.00%136923.82100.00%7043.345.14%129880.48
from other 22 15
customers
6504763.6179493.
Total 100.00% 325270.07 5.00% 136923.82 100.00% 7043.34 5.14% 129880.48
2215
Bad debt reserve provided based on portfolio: Accounts receivable from other customers based on portfolio
In CNY
Ending balance
Description
Book balance Provision for bad debt Provision proportion
Accounts receivable from other
6504763.22325270.075.00%
customers
Total 6504763.22 325270.07
Note to the basis for determining the combination:
Accounts receivable with same aging have similar credit risk characteristics
If the provision for bad debts of accounts receivable is accrued in accordance with the general expected credit loss model
please refer to the disclosure of other receivables to disclose the relevant information of the provision for bad debts:
Inapplicable
163FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Disclosed based on aging
In CNY
Aging Ending balance
Within 1 year (with 1 year inclusive) 6504125.13
1 to 2 years 638.09
Total 6504763.22
(2) Provision recovery or reversal of reserve for bad debts during the reporting period
Provision for bad debt during the reporting period
In CNY
Amount of movement during the reporting period
Categories Opening balance Recovery or Ending balance
Provision Written-off Others
reversal
Accounts
receivable with
provision for 7043.34 325206.26 6979.53 325270.07
expected credit
loss by portfolio
Total 7043.34 325206.26 6979.53 325270.07
Where the significant amount of the reserve for bad debt recovered or reversed:
Inapplicable
(3) Accounts receivable actually written off in the reporting period
Inapplicable
(4) Accounts receivable owed by the top five debtors based on the ending balance
In CNY
Ending balance of the accounts Proportion in total ending Ending balance of the provision
Organization name
receivable balance of accounts receivable for bad debts
Summary of the top five
accounts receivable in the 4816558.22 74.05% 240827.91
ending balance
Total 4816558.22 74.05%
(5) Account receivable with recognition terminated due to transfer of financial assets
Inapplicable
(6) Amount of assets and liabilities formed through transfer of accounts receivable and continuing to be involved
Inapplicable
164FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
2. Other receivables
In CNY
Items Ending balance Opening balance
Other receivables 630494908.53 717183139.00
Total 630494908.53 717183139.00
(1) Interest receivable
1) Classification of interest receivable
Inapplicable
2) Significant overdue interest
Inapplicable
3) Provision for bad debts
Inapplicable
(2) Dividends receivable
1) Classification of dividends receivable
Inapplicable
2) Significant dividends receivable with age exceeding 1 year
Inapplicable
3) Provision for bad debts
Inapplicable
(3) Other receivables
1) Classification of other receivables based on nature of payment
In CNY
Nature of the fund Ending book balance Opening book balance
Related party in scope of consolidation 629882199.56 713813300.99
Security deposit 553413.90 3117526.90
Others 126598.97 450895.61
Total 630562212.43 717381723.50
165FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
2) Provision for bad debts
In CNY
Stage 1 Stage 2 Stage 3
Expected credit loss in Expected credit loss in
Provision for bad debt Expected credit loss in the whole duration (no the whole duration (credit Total
future 12 months credit impairment impairment already
incurred) incurred)
Balance as at January 1
198584.50198584.50
2022
Balance as at January 1
2022 in the reporting
period
Provision in the reporting
period
Reversal in the reporting
131280.60131280.60
period
Charge-off in the
reporting period
Written-off in the
reporting period
Other changes
Balance as at June 30
67303.9067303.90
2022
Provision for loss - Change of the book balance with significant amount during the reporting period
Inapplicable
Disclosed based on aging
In CNY
Aging Ending balance
Within 1 year (with 1 year inclusive) 630512034.90
1 to 2 years 0.00
2 to 3 years 0.00
Over 3 years 50177.53
3 to 4 years 10127.53
4 to 5 years 0.00
Over 5 years 40050.00
Total 630562212.43
3) Provision recovery or reversal of reserve for bad debts during the reporting period
Provision for bad debt during the reporting period
In CNY
Amount of movement during the reporting period
Categories Opening balance Recovery or Ending balance
Provision Written-off Others
reversal
166FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
Receivables of
down payment 193923.85 128205.65 65718.20
and guarantee
Portfolio of other
4660.653074.951585.70
receivables
Total 198584.50 131280.60 67303.90
Where a significant amount of the reserve for bad debt recovered or reversed during the reporting period:
Inapplicable
4) Other receivables actually written off in the reporting period
Inapplicable
5) Accounts receivable owed by the top five debtors based on the ending balance
In CNY
Proportion in total Ending balance of
Organization name Nature of Payment Ending balance Aging ending balance of the provision for bad
other receivables debts
Summary of the top Receivables for
five other related parties in
629882199.56 Within 1 year 99.89% 0.00
receivables in the scope of
ending balance consolidation
Total 629882199.56 99.89% 0.00
6) Accounts receivable involving government subsidy
Inapplicable
7) Other receivables derecognized due to transfer of financial assets
Inapplicable
8) Amount of assets and liabilities formed through transfer of other receivables and continuing to be involved
Inapplicable
3. Long-term equity investments
In CNY
Ending balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in 1490325919.5 1490325919.5 1486912339.7 1486912339.7
subsidiaries 1 1 2 2
Investment in
associates and 57618231.83 57618231.83 55155605.31 55155605.31
joint ventures
Total 1547944151.3 1547944151.3 1542067945.0 1542067945.0
167FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
4433
(1) Investment in subsidiaries
In CNY
Increase/ Decrease (+ / -) in the reporting period Ending
balance of
Addition Decreas Provisio
Opening balance (book Ending balance (book the
Investees al e of n for
value) Others value) provision
investm investm impairm
for
ent ent ent
impairment
Shenzhen
Harmony World
607684512.151168586.67608853098.82
Watches
Center Co. Ltd.FIYTA Sales
455791572.321117745.55456909317.87
Co. Ltd.Shenzhen
FIYTA
Precision 101249207.88 616430.95 101865638.83
Technology
Co. Ltd.Shenzhen
FIYTA
Technology 50775222.76 224876.11 51000098.87
Development
Co. Ltd.FIYTA (Hong
137737520.00137737520.00
Kong) Limited
Shiyuehui
Boutique
5000000.005000000.00
(Shenzhen)
Co. Ltd.Shenzhen
Harmony
11684484.3911684484.39
E-Commerce
Limited
Liaoning
Hengdarui
36867843.9636867843.96
Commerce &
Trade Co. Ltd.Emile Chouriet
(Shenzhen) 80121976.26 285940.51 80407916.77
Limited
Total 1486912339.72 3413579.79 1490325919.51
(2) Investment in associates and joint ventures
In CNY
Increase/ Decrease (+ / -) in the reporting period Ending
Opening Ending balance
Decrease
balance Income Adjustme
Other Announce Provision
Additional balance of the
Investees of
(book from nt of other
equity d for for
investme Others (book provision
investme equity comprehe movemen distributin impairmevalue) nt value) for
nt investme nsive t g cash nt
impairme
168FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
nt income dividend nt
recognize or profit
d under
equity
method
I. Joint Venture
Inapplicable
II. Associates
Shanghai
Watch 5515560 2462626 5761823
Industry 5.31 .52 1.83
Co. Ltd.
551556024626265761823
Sub-total
5.31.521.83
551556024626265761823
Total
5.31.521.83
(3) Other note
Inapplicable
4. Operation Income and Costs
In CNY
Amount incurred in the reporting period Amount incurred in the previous period
Items
Income Cost Income Cost
Principal business 90020775.90 19190036.95 82132996.59 17699646.51
Other businesses 1621838.79 4601153.13
Total 91642614.69 19190036.95 86734149.72 17699646.51
Information in connection with the revenue:
In CNY
Classification of Contracts Segment 1 Total
Types of commodities
Including:
Leases 90020775.90 90020775.90
Others 1621838.79 1621838.79
Classification based on the
operation regions
Including:
Northwest China 10794617.06 10794617.06
South China 80847997.63 80847997.63
Total 91642614.69 91642614.69
Information concerning obligation performance:
The Company's income is mainly lease income. During each period of the lease term the current profit and loss are
recognized according to the straight-line method.Information related to the transaction price allocated to the remaining obligations performance:
169FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
At the end of the reporting period the amount of revenue corresponding to the performance obligations of the contracts
which have been signed but not yet performed or not yet completed is CNY0.00.
5. Return on investment
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Income from long term equity investment
2462626.521629328.24
based on equity method
Total 2462626.52 1629328.24
6. Others
Inapplicable
XVIII. Supplementary information
1. Statement of non-recurring gains and losses in the reporting period
In CNY
Items Amount Notes
1. Gain/Loss from disposal of non-current
-816021.16
assets
The government subsidies included in the
profits and losses of the current period
( (excluding government grants which are
13369782.95
closely related to the Company’s normal
business and conform with the national
standard amount or quantity)
Reversal of provision for impairment of
accounts receivable that has been separately 2130784.84
tested for impairment
Other non-operating income and expenses
-617309.48
with the aforesaid items exclusive
Less: Amount affected by the income tax 3306209.76
Total 10761027.39 --
Details of other gains and losses in compliance with the definition of non-recurring gains and losses.Inapplicable
Explanation of the non-recurring gains and losses listed in the Explanatory Announcement No.1 on Information Disclosure
for Companies Offering Their Securities to the Public as recurring gains and losses
Inapplicable
2. ROE and EPS
Profit in the reporting period Return on equity weighted Earnings per share
170FIYTA Precision Technology Co. Ltd. 2022 Semi-annual Report Full Text
average Basic earning per share Diluted earning per share
(CNY/share) (CNY/share)
Net profit attributable to the
Company’s shareholders of 4.62% 0.3351 0.3351
ordinary shares
Net profit attributable to the
Company’s shareholders of
4.27%0.30900.3090
ordinary shares less
non-recurring gains and loss
3. Discrepancy in accounting data between IAS and CAS
(1) Differences in the net profit disclosed in the financial report & the net assets attributable to the Company’s
shareholders respectively according to the IAS and the CAS.Inapplicable
(2) Differences in the net profit & the net assets disclosed in the financial report respectively according to the IAS
and the CAS
Inapplicable
(3) Note to the discrepancy in accounting data under the IAS and the CAS. In case the discrepancy in data which
have been audited by an overseas auditing agent has been adjusted please specify the name of the overseas
auditing agent.Inapplicable
4. Others
Inapplicable
FIYTA Precision Technology Co. Ltd.Board of Directors
August 20 2022
171
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