Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.FIYTA Precision Technology Co. Ltd.2024 Annual Report
March 2025
1Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
2024 Annual Report
Section 1 Important notes contents and definitions
The Board of Directors Board of Supervisors directors
supervisors and senior management of FIYTA Precision Technology
Co. Ltd. undertake that the information presented in the report is true
accurate and complete and does not contain false records
misrepresentations or major omissions and bear individual and joint
legal liability.Zhang Xuhua the person in charge of the Company Song
Yaoming the CFO and Tian Hui the Financial Manager (Accounting
Supervisor) declare to ensure that the financial content in the annual
report is truthful accurate and complete.All directors have attended the board meeting to review this report.The forward-looking descriptions such as future plans and
development strategies included in this annual report do not
constitute the Company's substantive commitments to investors.Investors are advised to pay attention to investment risks.The Company has described the existing macroeconomic risks
operational risks and other risks in detail in this report. Please refer to
the section on the future development of the Company and the
countermeasures in Section 3 Management discussion and analysis.The profit distribution plan reviewed and approved by the Board of
2Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Directors of the Company is as follows: based on the total share
capital on the equity registration date when the profit distribution plan
is implemented cash dividends of RMB 4.00 (including tax) will be
distributed to all shareholders for every 10 shares without bonus
share (including tax) and surplus funds will not be converted into
additional capital.This report is prepared in both Chinese and English. In case of
any ambiguity the Chinese version shall prevail.
3Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Table of Contents
Section 1 Important notes contents and definitions....2
Section 2 Company profile and key financial indica... 7
Section 3 Management discussion and analysis ....... 11
Section 4 Corporate governance ..................... 29
Section 5 Environmental and social responsibility ...56
Section 6 Significant events ........................58
Section 7 Changes in shares and shareholders ....... 67
Section 8 Relevant information about preferred sto.. 79
Section 9 Bond-related information ................. 79
Section 10 Financial Reporting ..................... 80
4Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
List of Reference Documents
I. Financial statements containing the signatures and seals of the legal representative the chief accountant and
the accountant in charge.II. The original audit report bearing the seal of the accounting firm and the signature and seal of the certified public
accountant.III. The originals of all the company's documents and announcements publicly disclosed during the reporting
period.
5Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Interpretations
Definitions refers to Description
The Company Company FIYTA refers to FIYTA Precision Technology Co. Ltd.AVIC refers to Aviation Industry Corporation of China LTD.AVIC INNO refers to AVIC INNO Co. Ltd.AVIC INTL holding refers to AVIC International Holding Limited
AVIC Finance refers to AVIC Finance Co. Ltd.Phase II restricted stock incentive
plan refers to
2018 A-Shares Restricted Stock Incentive Plan
(Phase II)
Current reporting period reporting
period refers to January 1 2024 to December 31 2024
6Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Section 2 Company profile and key financial indicators
I. Company Information
Abbreviation FIYTA FIYTA B Stock code 000026 200026
Stock name before change (if
any) None
Stock listing stock exchange Shenzhen Stock Exchange
Chinese name 飞亚达精密科技股份有限公司
Abbreviation in Chinese 飞亚达公司
Foreign name of the Company
(if any) FIYTA Precision Technology Co. Ltd.Foreign short name of the
Company (if any) FIYTA
Legal representative Zhang Xuhua
Registered address Fiyta Technology Building Gaoxin South 1st Road Nanshan District Shenzhen
Postal code of registered
address 518057
On January 30 1997 the registered address of the Company was changed from
"Building 6 Zhonghangyuan Shennan Middle Road Shenzhen" to "Building 6
Historical change of COOEC's Zhonghangyuan Shennan Middle Road Futian District Shenzhen"; On April 5
registered address 2000 the registered address was changed to "FIYTA Building No. 163 ZhenhuaRoad Futian District Shenzhen"; On February 20 2004 the registered address was
changed to "FIYTA Technology Building Gaoxin South 1st Road Nanshan District
Shenzhen".Office address Floor 20 Fiyta Technology Building Gaoxin South 1st Road Nanshan DistrictShenzhen
Postal code of business
address 518057
COOEC Website www.fiytagroup.com
E-mail investor@fiyta.com.cn
2. Contact person and contact information
Secretary of the Board of Directors Securities affairs representative
Name Song Yaoming Xiong Yaojia
Floor 20 Fiyta Technology Building 18th Floor Fiyta Technology
Contact address Gaoxin South 1st Road Nanshan Building Gaoxin South 1st Road
District Shenzhen Nanshan District Shenzhen
TEL 0755－86013669 0755－86013669
Fax 0755－83348369 0755－83348369
E-mail investor@fiyta.com.cn investor@fiyta.com.cn
III. Information disclosure and storage location
Website of the stock exchange where http://www.szse.cn
7Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
COOEC discloses its annual report
Name and website of the media where Securities Times Hong Kong Commercial Daily and CNINFO
Fiyta discloses its annual report (www.cninfo.com.cn)
Storage location of annual reports Corporate Planning Working Capital Department
IV. Registration changes
Unified Social Credit Code 91440300192189783K
Changes in primary business since the listing of the
Company (if any) No change
Changes in previous controlling shareholders (if any) No change
V. Other relevant information
Accounting firm engaged by the Company
Name of accounting firm RSM China CPA LLP (Special General Partnership)
Office address of accounting firm 1001-1 to 1001-26 10F Building 1 No. 22 Fuchengmenwai StreetXicheng District Beijing
Signing accountants Cai Ruxiao Zheng Chaomin Ge Hua
Sponsor institution engaged by the Company to perform continuous supervision during the reporting period
Not applicable
Financial consultant engaged by the Company to perform continuous supervision during the reporting period
Not applicable
VI. Main accounting data and financial indicators
Does the Company need to retrospectively adjust or restate the accounting data in previous years
No
2024 2023 Increase or decreaseYoY 2022
Operating income
(yuan) 3940530934.07 4569690002.99 -13.77% 4354096880.36
Net profit attributable to
shareholders of the 220350184.99 333178102.37 -33.86% 266681451.84
listed company (yuan)
Net profit after
deducting non-recurring
profits and losses
attributable to 208728288.68 316806208.13 -34.11% 249791455.73
shareholders of the
listed company (yuan)
Net cash flows from
operating activities 536730960.29 632401487.98 -15.13% 476228776.52
(yuan)
Basic earnings per
share (yuan/share) 0.5385 0.8082 -33.37% 0.6398
Diluted earnings per 0.5378 0.8075 -33.40% 0.6398
8Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
share (yuan/share)
Return on weighted
average net assets 6.55% 10.28% -3.73% 8.68%
Increase or decrease
at the end of the
As at the end of As at the end of current year
2024 2023 compared with the As at the end of 2022
end of the previous
year
Total assets (yuan) 4007690717.02 4204260897.08 -4.68% 4117143911.99
Net assets attributable
to shareholders of the 3391843200.61 3333805752.19 1.74% 3136423492.15
listed company (yuan)
The Company's net profit before and after deducting non-recurring profit and loss in the last three accounting years
whichever is lower is negative and the audit report for the latest year shows that the Company's ability to continue as
a going concern is uncertain
No
The lower of net profit before and after deducting non-recurring profit and loss (whichever is lower) is negative
No
VII. Differences in accounting data under domestic and overseas accounting
standards
1. Differences in net profit and net assets in the financial reports disclosed in accordance with
international accounting standards and Chinese accounting standards
Not applicable
2. Differences in net profit and net assets in the financial reports disclosed in accordance with
overseas accounting standards and Chinese accounting standards
Not applicable
VIII. Main financial indicators by quarter
Unit: yuan
Q1 Q2 Q3 Q4
Operating revenue 1065150876.00 1011247035.32 963368988.81 900764033.94
Net profit attributable
to shareholders of 75499096.30 71639386.04 50484466.22 22727236.43
the listed company
Net profit after
deducting non-
recurring profits and
losses attributable to 69755955.88 70689265.93 50362069.34 17920997.53
shareholders of the
listed company
Net cash flows from
operating activities -964281.20 137495077.72 180837164.86 219362998.91
9Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Whether the above financial indicators or their sum are significantly different from the financial indicators disclosed in
the quarterly report and semi-annual report of the Company
No
IX. Non-recurring gains and losses items and amounts
Unit: yuan
Item Amount in2024 Amount in 2023
Amount in
2022 Notes
Profit or loss from disposal of non-current
assets (including the writing-off part for
which the asset impairment provision is 2367816.60 685868.57 91925.06
made)
Government grants included in the current
profit or loss (except for government grants
closely related with the normal business of
COOEC obtained according to established
criteria and in accordance with the national 5480540.76 8665506.85 18648210.06
policies and provisions and those
continuously affecting the profit and loss of
FIYTA)
Profit or loss on fair value changes arising
from the holding of financial assets and
financial liabilities by non-financial It was mainly
enterprises and the profit or loss arising due to the
from the disposal of financial assets and 524315.57 0.00 0.00 increase in
liabilities except for effective hedging income from
operations associated with COOEC's time deposits.normal operations
Reversal of receivables tested for
impairment separately provision for 3753262.84 7570975.54 4389902.44
impairment
Non-operating revenue and expenses other
than the above-mentioned items 2834587.38 3910736.70 -1064064.23
Less: income tax effects 3338626.84 4461193.42 5175977.22
Total 11621896.31 16371894.24 16889996.11 --
Specific circumstances of other items that meet the definition of non-recurring gains and losses:
Not applicable
Description of the definition of non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profit or Loss as recurring
profit and loss items
Not applicable
10Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Section 3 Management discussion and analysis
I. Industry status during the reporting period
In 2024 according to the data of the National Bureau of Statistics the total retail sales of domestic consumer
goods increased by 3.5% year-on-year the total consumer market grew steadily but differentiated significantly and the
traditional watch consumer market faced multiple pressures such as demand contraction and intensified competition.In terms of consumption structure luxury goods and optional consumption continue to be under pressure
while experiential consumption such as health and technology is on the rise. Bain's report indicated that the sales of
personal luxury goods in mainland China fell by 18%-20% year-on-year among which the watch category was
significantly affected by consumption outflow (the proportion of overseas consumption rose to 40%) and preference
shift. Data from the Federation of the Swiss Watch Industry showed that the export value of Swiss watches to
mainland China fell by 25.8% year-on-year throughout the year and sales of watches in various price ranges declined
to varying degrees; Meanwhile the PwC report revealed that the demand for sports equipment and health monitoring
equipment is rising and IDC data showed that the shipments of wrist-worn devices (including smart watches and
bracelets) in China increased by 20.1% YoY in the first three quarters of this year ranking first in the world.In terms of consumption channels fragmentation of offline channels has intensified with discount stores and
immersive experience stores becoming the main growth drivers while customer traffic to traditional department stores
and specialty stores has declined; The penetration rate of online channels has stabilized and the proportion of refined
operation modes such as livestream e-commerce and member private domains has increased.In terms of consumption preferences young consumers are less loyal to brands and they are more concerned
about cost-effectiveness and consumption experience. Proactive healthcare technological interaction dedicated
services and other models are more popular.In this context the Company will insist on its own brand positioning strengthen brand building and differentiation
and enhance the core competitiveness of traditional watch business; consolidate channel operation management
optimize store structure and form mode and actively deploy high-quality and incremental channels. By emphasizing
the customer orientation the Company will increase AI and other technical empowerment and digital applications and
continue to deepen customer research; anchor the transformation and upgrading goals enhance the core technology
capabilities of precision technology and smart wearable and actively promote the expansion of related new industries
so as to cope with market changes.II. Main business of the Company during the reporting period
The Company was founded and developed from aviation precision technology and material technology with the
mission of "inheriting the 'spirit of serving the country by aviation' and creating a quality life". Over the years it has
deeply cultivated the watch industry formed a core business layout covering its own brand of watches and
comprehensive services of luxury watches to promote each other and is committed to becoming a leader in China's
watch industry spreading aviation culture and Chinese culture and actively investing strategic emerging industries
such as precision technology and smart wear.With its continuous accumulation in professional watchmaking capacity building and brand operation management
the Company has a number of watch brands such as "FIYTA" "Emile Chouriet" "Beijing" "Jeep" and "ADASHER"
covering medium and high-end mass fashion and other market segments. Among them "FIYTA" a core brand is
positioned as "a high-quality Chinese watch brand featuring aerospace watches". By continuously strengthening the
11Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
unique IP of aerospace and product quality the Company increases the research and development of movements and
key components integrates aerospace characteristic technologies and material applications and creates distinctive
features thereby promoting the development of the brand towards "youthfulness high-end and mainstream".In order to seize the opportunities in the domestic luxury watch market the Company has established a
comprehensive service channel for "Harmony" luxury watches specializing in the distribution and service of world
luxury watches and has established close cooperative relations with many world high-end and mainstream brands. By
positioning "Harmony" as a "full service provider and brand operation platform for luxury watches" the Company
continues to solidly promote the improvement of operation capabilities and customer service capabilities. Relying on
the operation experience of leading international brands "Harmony" has become a top professional high-end chain
commercial brand of luxury watches in China helping improve the operation of own brands.In recent years under the development principle of "shared technology shared industry roots and aligned value"
the Company has expanded into strategic emerging industries such as precision technology and smart wearable by
virtue of precision technology strength and industrial accumulation and will continue to actively increase resource
investment to cultivate and grow the two strategic industries.III Analysis of core competitiveness
(I) Brand operation and management capabilities of the whole industry chain
The Company possesses integrated capabilities across the entire industry chain including research and
development design manufacturing sales and service. Through resource integration and business synergy it
continuously strengthens the differentiation and competitiveness of its core proprietary brand "FIYTA". During the
reporting period "FIYTA" brand won multiple awards including the Platinum and Gold awards at the 2024 MUSE
Design Awards credited to its innovative product lineup. With the high-quality operation and management of the e-
commerce platform the Company has won a number of awards such as "2023 Tmall Fashion Accessories New Trend
Track Award" "2023 JD Trend New Product Award" "TikTok E-commerce Annual Brand in Apparel and Men's
Comprehensive Industry in 2023" and "Kuaishou E-commerce Annual Excellent Merchant in Jewelry and Jade
Industry in 2024". These achievements have significantly boosted the brand's influence and visibility.(II) Omni-channel refined operation and management capabilities
The Company has refined channel operation and management capabilities. Through high-quality development of
offline channels and steady promotion of online and offline channel integration the channel structure has been
continuously optimized and the operation efficiency has been steadily improved basically forming a three-dimensional
channel network covering online and offline channels across China and abroad. During the reporting period the
"FIYTA" brand won the "Amazon Overseas Rising Star Award in 2024" by virtue of the smooth development of
overseas platform channels and Harmony Company relying on its excellent channel operation and comprehensive
strength was awarded the "Top Ten Value-added Enterprises in the Wholesale and Retail Industry in Nanshan District
in 2023".(III) Core technical capabilities of precision technology
As a national technology innovation demonstration enterprise a national enterprise technology center and a
national industrial design center the Company has key core technologies and high-end watchmaking skills covering
watch movement parts manufacturing aerospace watch development and other aspects. Relying on the R & D and
production platforms in Shenzhen and Switzerland the Company focuses on key technology research and continues
to promote technological breakthroughs in movement and the application of scientific research results. During the
reporting period the Company's self-developed automatic mechanical movement "Zhaixing" became the first female
space watch movement certified by the French Besan?on Observatory. The Company won the "Second Prize of
12Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Science and Technology Progress Award of China National Light Industry Council" for leading the completion of ISO
14368-4:2020 the first international standard in the field of watches proposed and formulated by China. With
outstanding achievements in standard development and standard system construction it was awarded the "Shenzhen
Standard Innovation Demonstration Base".(IV) Efficient and empowered digital operation and management capabilities
The Company has a diversified digital retail system and digital management platform that empowers businesses
and employees and promotes business collaboration and operational efficiency by continuously deepening digital
applications in management and manufacturing sales service and other links. During the reporting period the
Company carried out in-depth digital construction related work such as digital retail system optimization upgrading
and construction of operation management system and exploration of intelligent manufacturing mode constantly
facilitating the Company's digital transformation.(V) Construction capacity of professional talent team
Based on the concept of "value creation" the Company continuously has invested in the construction of talent
team and has established a sound talent selection training and promotion system and built a professional and stable
talent team. In addition the Company has cultivated a number of outstanding representatives in the industry in core
fields such as design R & D and manufacturing by building an innovative incentive mechanism and developing
diversified talent incentive measures.IV. Analysis of main business
1. Overview
In 2024 the Company adhering to seeking progress while maintaining stability strengthened and expanded the
main business of watches to improve core competitiveness and focused on scientific and technological innovation
accelerated transformation and upgrading enhanced core functions deepened quality and efficiency improvement
prevented asset risks identified operation counterattack points and carried out various operation and management
work in an orderly manner. During the reporting period in the environment of continuous pressure on the watch
consumer market the Company achieved operating income of RMB 3940.53 million yuan a YoY decrease of 13.77%
with the total profit of RMB 286.11 million yuan down 34.53% YoY. The Company paid close attention to lean
operation and risk prevention and control. At the end of the period the asset-liability ratio was 15.37% and the net
cash flow from business activities was RMB 537 million yuan indicating high operating efficiency and controllable
operating risks. Moreover the Company consolidated confidence in development and attached importance to
shareholder returns. It has implemented the cash dividend plan in 2023 and the domestic listed foreign shares (B
shares) share repurchase and cancellation plan (Phase IV) and has formulated a cash dividend plan in 2024 to pay
cash dividends of 4.00 yuan (tax included) to all shareholders for every 10 shares.During the reporting period the Company's main business initiatives are as follows:
(I) Firmly promote the implementation of brand positioning upgrade strategy and spread aviation and
Chinese culture
During the reporting period the aerospace product matrix was optimized continuously by positioning "FIYTA"
brand as a "high-quality Chinese watch brand featuring aerospace watch" and a three-dimensional product layout was
implemented in combination with aerospace characteristic IP. The integration with intangible cultural heritage was
strengthened by incorporating traditional intangible cultural heritage crafts such as Song porcelain and mother-of-pearl
inlay into product design so as to showcase China's excellent traditional culture. The IP cooperation with "Y-20
Transport Aircraft" CNNC and other "Pillars of a Great Power" was deepened and the brand was frequently exposed
13Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
through Milan Fashion Week cooperation with Xia Zhiguang "Shenzhou-18" "Shenzhou-19" Zhuhai International
Aviation & Aerospace Exhibition Nasdaq large screen display and other brand events.(II) Continue to promote the optimization of channel structure and improve to the efficiency of operation
and management
During the reporting period for the "FIYTA" brand the focus was on building offline core stores and taking
aerospace theme stores as the starting point to actively deploy high-quality channels such as mainstream shopping
malls and promote the transformation of business models. The efficiency of self-owned stores and customer was
improved through the "Little Red Book + TikTok Store Livestream + Local Life" model. By strengthening the
development of new products online and the construction of self-operated livestream matrix during the "618" period
the e-commerce GMV achieved contrarian growth ranking first in the turnover of domestic watches in the whole
network. Adhering to the integration of product and sales the Company carried out global marketing and made the
popular "small gold watch" enter the TOP list of major platforms helping the brand to significantly increase its share in
mainstream e-commerce platforms. Meanwhile the Company actively expanded overseas channels and duty-free
channels to develop incremental markets."Harmony" actively expanded cooperation with medium and high-end brands developed offline channels with
high quality and steadily promoted the integrated development of online and offline channels; Deepen and refine
excellent operation in an all-round way and systematically improve operational efficiency from online offline stores
brands members services and other dimensions.(III) Continue to increase investment in scientific and technological innovation and strengthen the
strength of precision technology
During the reporting period the Company's self-developed automatic mechanical movement "Zhaixin" became the
first female aerospace watch movement certified by the French Besan?on Observatory. The Company actively
promoted the large-scale commercial use of the self-developed movement the product application of high-level
mechanical movements such as the tourbillon the development of key parts such as clamps and hairsprings and the
development and application of aerospace materials and precision timing technology.(IV) Continue to promote digital transformation and deepen digital platform application
During the reporting period the Company continued to carry out digital operations improving and iterating the
digital retail system; Focusing on customer needs and profiles optimized the member life cycle model to enhance core
metrics such as conversion of potential customers and retention of existing customers ensuring continuous
improvement. Deepening the private domain operations leveraged mini-programs to cultivate private domain traffic
and develop activities like private domain group purchases.(V) Continue to promote the exploration of new businesses and actively cultivate strategic emerging
industries
During the reporting period the Company strengthened its precision technology business enhancing its technical
capabilities to meet the demands of complex and high-precision products driving the expansion of new customers.The smart wearable business continued to advance with upgrades in product and technological capabilities. There
was a strong emphasis on enhancing both software and hardware technologies along with new product development.Under the "Jeep" brand new products such as the curved screen square smartwatch integrating AI technology were
launched achieving the increased revenue during the reporting period.YoY changes in main financial data
Balance sheet items
Items Ending balance Beginning balance Change Reason for change
Notes receivable 29611600.60 18268972.37 62.09% It was mainly due to the increase in bill
14Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
settlement customers.Other current assets 98007925.22 72249391.81 35.65% It was mainly due to the increase in timedeposit transactions.Other non-current It was mainly due to the decrease in
assets 3792253.84 9434627.17 -59.80% prepaid store decoration payments.Short-term
borrowings 124087754.51 250187763.87 -50.40%
It was mainly due to repayment of bank
borrowings.Accounts payable 115532921.57 173825907.71 -33.54% It was mainly due to the decrease in thepurchase of luxury watches.Treasury share 12815556.81 78645532.23 -83.70% It was mainly due to the cancellation ofrepurchased B shares.Profit statement items from the beginning of the year to the end of the reporting period
Items Amount in the Amount in thecurrent period previous period Change Reason for change
Other income 7492642.33 11435373.78 -34.48% It was mainly due to the decrease ingovernment subsidies received.Investment income -431254.89 -5819479.60 92.59% It was mainly due to the losses reducedby shareholding enterprises.Credit impairment This is mainly due to a significant
loss 266485.96 6827575.82 -96.10% reversal of a single item during the sameperiod.Losses from asset It was mainly due to the increase in the
impairment -19289865.31 571980.37 -3472.47% provision for impairment of luxury watchbusiness.(LV) Incomes from
disposal of assets 2367816.60 685868.57 245.23%
It was mainly due to the impact of
disposing of certain properties.Items in the statement of cash flows from the beginning of the year to the end of the reporting period
Items Amount in the Amount in thecurrent period previous period Change Reason for change
Net cash received
from disposal of
fixed assets
intangible assets 4848874.32 1278284.57 279.33%
It was mainly due to the impact of
disposing of certain properties.and other long-term
assets
Cash received from
other investing 201839677.57 0.00 - It was mainly due to the increase in time
activities deposits.Cash paid for other
investing activities 231179882.49 0.00 -
It was mainly due to the increase in time
deposits.It was mainly due to the increase in the
Cash received from 323957187.86 250000000.00 29.58% amount of borrowings obtained in thisborrowings year due to changes in borrowing
methods.It was mainly due to the increase in the
Cash paid for debt
repayments 450000000.00 290000000.00 55.17%
amount of borrowings to be repaid in the
this year due to changes in borrowing
methods.Cash paid for
distribution of
dividends and profits 168545613.69 114106711.75 47.71% It was mainly due to the increase in cash
or payment of dividends.interests
15Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Cash paid for other It was mainly due to the decrease in
financing activities 116757093.91 198056975.77 -41.05% share repurchase expenses.
2. Revenue and cost
(1) Composition of operating income
Unit: yuan
2024 2023 YoY
increase/decreas
Amount Proportion in Proportion inrevenue Amount revenue e
Total operating
income 3940530934.07 100% 4569690002.99 100% -13.77%
By industry
Watch
business 3656306133.74 92.79% 4267371133.82 93.38% -14.32%
Precision
technology 134469811.50 3.41% 135950405.45 2.98% -1.09%
business
Leasing
business 138069112.39 3.50% 150361811.22 3.29% -8.18%
Others 11685876.44 0.30% 16006652.50 0.35% -26.99%
By product
Watch brand
business 721623074.27 18.31% 797083010.50 17.44% -9.47%
Full service
business of 2934683059.47 74.48% 3470288123.32 75.94% -15.43%
luxury watches
Precision
technology 134469811.50 3.41% 135950405.45 2.98% -1.09%
business
Leasing
business 138069112.39 3.50% 150361811.22 3.29% -8.18%
Others 11685876.44 0.30% 16006652.50 0.35% -26.99%
By region
South China 1857820951.58 47.15% 2111088618.01 46.20% -12.00%
Northwest
China 546718719.91 13.87% 704042804.95 15.41% -22.35%
North China 122281678.29 3.10% 217315524.00 4.76% -43.73%
East China 492238757.53 12.49% 570830728.85 12.49% -13.77%
Northeast
China 341939729.91 8.68% 357656639.08 7.83% -4.39%
Southwest
China 579531096.85 14.71% 608755688.10 13.31% -4.80%
Distribution mode
Direct sales 3794632582.06 96.30% 4429357639.21 96.93% -14.33%
Distribution 145898352.01 3.70% 140332363.78 3.07% 3.97%
(2) Industries products regions and sales models accounting for more than 10% of the Company's operating
income or operating profit
Unit: yuan
16Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Increase or Increase/decr Increase/dec
decrease in ease in rease in
Gross revenue operating gross profit
Operating revenue Operating costs profit compared costs rate
rate with the same compared compared
period last with the with the
year same period same periodlast year last year
By industry
Watch
business 3656306133.74 2317289192.84 36.62% -14.32% -15.60% 0.96%
Leasing
business 138069112.39 43245383.91 68.68% -8.18% -2.54% -1.81%
By product
Watch brand
business 721623074.27 236520324.15 67.22% -9.47% -10.33% 0.32%
Full service
business of
luxury 2934683059.47 2080768868.69 29.10% -15.43% -16.16% 0.61%
watches
Leasing
business 138069112.39 43245383.91 68.68% -8.18% -2.54% -1.81%
By region
South China 1857820951.58 1150015490.66 38.10% -12.00% -13.99% 1.43%
Northwest
China 546718719.91 340604264.11 37.70% -22.35% -23.95% 1.32%
North China 122281678.29 67869248.79 44.50% -43.73% -48.47% 5.10%
East China 492238757.53 320993514.84 34.79% -13.77% -12.74% -0.77%
Northeast
China 341939729.91 228825624.89 33.08% -4.39% -4.76% 0.26%
Southwest
China 579531096.85 367889791.14 36.52% -4.80% -3.38% -0.93%
Distribution mode
Direct sales 3794632582.06 2406620203.55 36.58% -14.33% -15.51% 0.89%
Distribution 145898352.01 69577730.88 52.31% 3.97% 21.98% -7.04%
If the statistical caliber of the company's main business data is adjusted during the reporting period the company's
latest period main business data adjusted according to the caliber at the end of the reporting period
Not applicable
(3) Whether the Company's physical sales revenue is greater than labor revenue
Yes
Industry YoY
classification Item Unit 2024 2023 increase/decrease
Sales volume Nos. 978021 902955 8.31%
Brand watches Productionvolume Nos. 972522 868480 11.98%
Inventory Nos. 777015 782514 -0.70%
Reasons for the YoY change of more than 30% in relevant data
Not applicable
17Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
(4) Performance of major sales contracts and major procurement contracts signed by the Company as of the
reporting period
Not applicable
(5) Composition of operating costs
Industry and product classification
Unit: yuan
20242023
Industry Proportion YoY
classifica Item Proportion in increase/decr
tion Amount operating Amount
in
costs operating
ease
costs
Merchandise
Watch procurement 2080768868.69 84.03% 2481853312.97 85.42% -16.16%
business cost
Raw material 214145376.12 8.65% 239031937.74 8.23% -10.41%
Unit: yuan
20242023
Product YoY
classificat Item Proportion Proportion increase/decr
ion Amount in operating Amount in operating ease
costs costs
Full
service Merchandise
business procurement 2080768868.69 84.03% 2481853312.97 85.42% -16.16%
of luxury cost
watches
Watch
brand Raw material 214145376.12 8.65% 239031937.74 8.23% -10.41%
business
(6) Whether the scope of consolidation changed during the reporting period
No
(7) Information about significant changes or adjustments in COOEC's business products or services during
the reporting period
Not applicable
(8) Major sales customers and major suppliers
Major sales customers of FIYTA
Total sales amount from top five customers (yuan) 829086732.66
Proportion of total sales amount from top five customers
in total annual sales 21.04%
Proportion of sales of related parties in the sales from top
five customers to the total annual sales 0.00%
18Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Top 5 customers of the Company
No. Customer name Sales amount (yuan) Proportion in total annualsales
1 First place 242985550.36 6.17%
2 Second place 169435204.94 4.30%
3 Third place 160738418.61 4.08%
4 Fourth place 133662363.38 3.39%
5 Fifth place 122265195.37 3.10%
Total -- 829086732.66 21.04%
Other information of main customers
Not applicable
Main suppliers
Total procurement amount from top five suppliers (yuan) 1916849035.55
Proportion of the total procurement amount from the top
five suppliers in the total annual procurement amount 81.18%
Proportion of the procurement amount of related parties
in the procurement amount from top five suppliers to the 0.00%
total annual procurement amount
Information of top 5 suppliers
No. Supplier name Procurement amount Proportion in total annual(yuan) procurement
1 First place 964836795.24 40.86%
2 Second place 541758611.60 22.94%
3 Third place 164093247.92 6.95%
4 Fourth place 148438639.92 6.29%
5 Fifth place 97721740.87 4.14%
Total -- 1916849035.55 81.18%
Other information of main suppliers
Not applicable
3. Expenses
Unit: yuan
2024 2023 YoY Description ofincrease/decrease significant changes
Selling expenses 882777806.63 924009179.32 -4.46% Not applicable
Administrative
expenses 183277930.17 205359277.24 -10.75% Not applicable
Financial expenses 17924871.34 21469772.77 -16.51% Not applicable
Research and
development 56000000.18 57802244.08 -3.12% Not applicable
expenses
19Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
4. R&D investment
Expected impact
Main R&D projects Project purpose Projectprogress Objectives to be achieved
on the Company's
future
development
To provide the
market with
A series of new innovative To develop multiple series of new
products with products with Annual tasks products with FIYTA brand
FIYTA brand brand completed characteristics of aerospace
Provide innovative
characteristics characteristics of theme and market them as
products
aerospace theme planned
elements
To carry out structural innovative
Development of To improve the design new material applicationinnovative research and process innovation To improve the
structures performance andmarket Annual tasks according to the development
performance and
materials and market
processes for new competitiveness of
completed requirements of aerospace-themed
new products so as to improve competitiveness
products new products product performance and expand of new products
functions
To meet the needs of brand
Development of To improve the differentiation and product To improve the
mechanical watch performance and
movements with market Annual tasks
innovation develop mechanical performance and
completed watch movements and key parts marketdistinctive brand competitiveness of with special functions and competitiveness
features new products indication methods and realize of new products
new product applications
Development of To provide special To develop and deliver special To provide special
special watches watches for the Annual tasks watches according to the watches for the
for manned space manned space completed requirements of manned space manned space
flight flight missions flight
Smart watch To carry out the research and
products with development of core functions and
functions such as To improve the data analysis solutions of smart To improve the
sports and health performance and Annual tasks wearable products the research performance and
human body sign market and development of technical market
monitoring and competitiveness of
completed solutions combining mechanical competitiveness
various daily new products watches and smart watches etc. of new products
applications and apply relevant research to newproducts
R&D personnel
2024 2023 Change
Number (person) 136 119 14.29%
Proportion 3.73% 2.81% 0.92%
Educational structure of R&D personnel
Undergraduate 73 62 17.74%
Master degree 20 18 11.11%
Doctor degree 1 2 -50.00%
College or below 42 37 13.51%
Age structure
Under 30 years old 34 28 21.43%
20Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
30-40 years old 60 64 -6.25%
Over 40 years old 42 27 55.56%
R&D investment
2024 2023 Change
R&D investment amount (yuan) 56000000.18 57802244.08 -3.12%
Proportion of R&D investment in
operating income 1.42% 1.26% 0.16%
Capitalization amount of R&D
investment (yuan) 0.00 0.00 0.00%
Proportion of capitalized R&D
investment in R&D investment 0.00% 0.00% 0.00%
Reasons and impact of major changes in the composition of R&D personnel
Not applicable
Reasons for significant changes in the proportion of total R&D investment in operating income compared with the
previous year
Not applicable
Reasons for significant changes in the capitalization rate of R&D investment and their rationality
Not applicable
5. Cash flow
Unit: yuan
Item 2024 2023 YoY increase/decrease
Sub-total of cash inflows from
operating activities 4389078476.62 5095999854.92 -13.87%
Sub-total of cash outflows from
operating activities 3852347516.33 4463598366.94 -13.69%
Net cash flows from operating
activities 536730960.29 632401487.98 -15.13%
Subtotal of cash inflows from
investing activities 207107067.71 1778284.57 11546.45%
Sub-total of cash outflows from
investing activities 317998568.53 91104776.03 249.05%
Net cash flows from the
investing activities -110891500.82 -89326491.46 -24.14%
Subtotal of cash inflows from
financing activities 323957187.86 250000000.00 29.58%
Sub-total of cash outflows from
financing activities 735302707.60 602163687.52 22.11%
Net cash flows from financing
activities -411345519.74 -352163687.52 -16.81%
Net increase of cash and cash
equivalents 14325023.78 190890764.07 -92.50%
Description of main influencing factors of significant YoY changes in relevant data
Cash inflows and outflows from investing activities changed significantly YoY which is mainly due to the increase in
time deposits.
21Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Reasons for significant difference between net cash flows from operating activities of the Company during the
reporting period and net profit of the current year
Not applicable
V. Analysis of non-main business
Not applicable
VI. Analysis of assets and liabilities
1. Major changes in the composition of assets
Unit: yuan
As at the end of 2024 Early 2024
Increase or Description of
Proportio Proportio decrease in significant
Amount n in total Amount n in total proportion changes
assets assets
Monetary
funds 518954177.49 12.95% 504629153.71 12.00% 0.95% Not applicable
Accounts
receivable 260152834.43 6.49% 323142761.64 7.69% -1.20% Not applicable
Contract
assets 0.00 0.00% 0.00 0.00% 0.00% Not applicable
Inventories 1984486969.74 49.52% 2100666175.28 49.97% -0.45% Not applicable
Investment
properties 301002364.41 7.51% 360255832.14 8.57% -1.06% Not applicable
Long-term
equity 50907036.84 1.27% 51862607.30 1.23% 0.04% Not applicable
investments
Fixed assets 377568144.41 9.42% 355785354.68 8.46% 0.96% Not applicable
Construction
in progress 0.00 0.00% 0.00 0.00% 0.00% Not applicable
Right-of-use
assets 98437976.41 2.46% 109452481.64 2.60% -0.14% Not applicable
Short-term
borrowings 124087754.51 3.10% 250187763.87 5.95% -2.85% Not applicable
Contract
liabilities 12605722.95 0.31% 12286243.62 0.29% 0.02% Not applicable
Long-term
borrowings 0.00 0.00% 0.00 0.00% 0.00% Not applicable
Lease
liabilities 35065292.04 0.87% 43526352.52 1.04% -0.17% Not applicable
High proportion of overseas assets
Not applicable
2. Assets and liabilities measured at fair value
Not applicable
22Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
3. Restrictions status on assets rights as of the end of the reporting period
Not applicable
VII. Analysis of investment status
1. General situation
Investment amount during the Investment amount in the same
reporting period (yuan) period of last year (yuan) Change range
0.0080000000.00-100.00%
2. Significant equity investment acquired during the reporting period
Not applicable
3. Significant non-equity investments in progress during the reporting period
Not applicable
4. Investment in financial assets
(1) Securities investment situation
Not applicable
(2) Derivatives investment situation
Not applicable
5. Use of raised funds
Not applicable
VIII. Sale of major assets and equity
1. Sale of major assets
Not applicable
2. Sale of significant equity
Not applicable
23Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
IX. Analysis of major holding and participating companies
Major subsidiaries and joint-stock companies with an impact of more than 10% on the company's net profit
Unit: yuan
Name of the company Companytype Main business Registered capital Total assets Net assets
Operating
revenue Operating profit Net profit
Purchase and
Shenzhen Harmony sale of clocks
World Watch Centre Subsidiaries watches and 600000000 1994673835.63 1124696669.99 2864961918.35 224615059.28 169967233.08
Co. Ltd. spare parts andmaintenance
services.Design R&D and
FIYTA Sales Co. Ltd. Subsidiaries sales of clocksand watches and 450000000 430580717.99 322904281.38 408216929.14 -12978662.66 -9983669.33
spare parts.Shenzhen FIYTA Manufacture
Precision Technology Subsidiaries clocks andwatches and 180000000 290546321.79 217910085.80 328399825.27 4137027.52 7634783.28Co. Ltd. spare parts.Production and
Shenzhen FIYTA STD
Co. Ltd. Subsidiaries
processing of
precision spare 50000000 194063771.01 170826371.10 153673661.62 6762026.36 6999097.67
parts.Trade and
FIYTA (HONG KONG) Subsidiaries investment inLIMITED watches clocks 137737520 264479035.44 253422394.80 73498904.56 5703019.60 5688824.76
and accessories.Emile Chouriet Design R&D and
Horologe (Shenzhen) Subsidiaries sales of clocksand watches and 41355200 138401065.89 54609576.57 60923662.03 7072008.60 4575371.28Co. Ltd. spare parts.Acquisition and disposal of subsidiaries during the reporting period
24Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Not applicable
Description of main holding and participating companies
1. The net profit of Shenzhen Harmony World Watch Centre Co. Ltd. decreased year-on-year primarily due to a decline in sales revenue from the Full service business of
luxury watches.
2. The net profit of Shenzhen Flyta Precision Technology Co. Ltd. decreased year-on-year mainly due to a decrease in sales revenue from the watch brand business an
increase in inventory impairment losses and other reasons.
25Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
X. Structured entities controlled by the company
Not applicable
XI. Structured entities controlled by the company
(I) Future development strategy
In 2025 the Company will continue to follow the guiding principle of "high-quality development" to expand the
watch industry and improve its core competitiveness and accelerate the development of new industries enhance
core functions and do a solid job in the following:
1. Consolidate the brand positioning and improve the comprehensive competitiveness of the brand
The "FIYTA" brand will remain as a "high-quality Chinese watch brand featuring aerospace watch". By
adhering to the "national tide" direction the Company will strengthen product innovation design promote the IP
linkage between the brand and aerospace and "Pillars of a Great Power" and create product differentiation. In
addition the Company will strengthen precision marketing planning rely on online media and offline channels to
expand the brand influence and integrate aviation culture and traditional Chinese culture into the brand story in an
all-round way.
2. Deepen channel operation and promote the integrated development of online and offline channels
In terms of the watch business the channel and brand structure will be optimized constantly and the focus will
be on the development of core high-quality channels and medium- and high-end brands; the lean operation of
offline channels and the combination of product and marketing of online channels will be enhanced to promote the
integrated development of online and offline channels and explore opportunities for channel and brand resource
integration in an orderly manner.
3. Increase R&D investment and improve scientific and technological attributes
The Company will increase investment in the domestication of movements the development of high-end
customized movements such as tourbillons and key components integrate aerospace characteristic technologies
and material applications and improve scientific and technological attributes.
4. Accelerate transformation and upgrading and vigorously develop new industries
Under the principle of "shared technology shared industry roots and aligned value" the Company will
vigorously develop strategic emerging industries such as precision technology business and smart wearable
business continue to build core capabilities and improve the overall business scale.(II) Possible risks and countermeasures
1、Consumer market risk
At present the Company is encountering multiple market risks such as sluggish domestic traditional watch
consumer demand consumer outflow and consumer preference shift. In this regard the Company will consolidate
the positioning of brand characteristics improve the aerospace quality of products impress consumers with
perceptible distinctive characteristics and organically combine aerospace culture with Chinese traditional culture
so as to obtain the recognition of target consumer groups. The Company will deeply cultivate the refined operation
of channels and improve the full life cycle management and service capabilities of consumers and enhance
consumer stickiness. Additionally The Company will seize market opportunities and actively explore businesses
related to overseas markets and duty-free markets.
2、Core technology risk
26Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
At present the Company is encountering multiple technical challenges in the production and manufacturing of
traditional watch movements and key components intelligent wearable systems and function iteration and
extensive in-depth application of digitalization. In this regard the Company will increase investment in core
technologies promote core technologies in the research and development of movement and key components the
development and integration of intelligent software and hardware and the application of AI and other cutting-edge
technologies strengthen the introduction and retention of key technical talents and improve the overall scientific
and technological innovation ability so as to empower high-quality business development.XII. Reception survey communication interview and other activities during the
reporting period
Main contents Index of
Reception Reception Reception Object type Reception discussed and
basic
time place mode object information informatio
provided n of thesurvey
Network Shenwan
and HongyuanSecurities Co. Company
March 18 conferenceroom of Others agencies Ltd. Fullgoal operation and2024 FIYTA Fund development
Technology Management planning etc.Building CompanyLimited
Online Investors who
https://eseb. communicati participated in CompanyMarch 22 cn/1cFKiOE on on the Others the Company's operation and2024 1oVq network 2023 Online development
platform Performance planning etc.Briefing online
Eastmoney https://irm.Securities Co. cninfo.co
Ltd. Yuekai m.cn/ircs/c
Securities Co. ompany/c
Ltd. Jingyuan ompanyDe
Tiancheng tailstockc
Investment ode=0000
Consultants 26&orgId=
Co. Ltd. gssz00000
26
Conference Mozhu Private
room of Equity Fund Company
June 6 2024 FIYTA Field survey agencies Management operation and
Technology Co. Ltd. development
Building Shenzhen planning etc.Flying Tiger
Investment &
Management
Co.Ltd.Shenzhen
Qianhai
Huirongfeng
Capital
Management
Co.Ltd.
27Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Shenzhen
Qiancun
Investment
Consulting
Co. Ltd. and
Luyan
Guangnian
Company
Shenwan
Hongyuan
Securities Co.October 30 Telephone Telephone Ltd. Founder
Company
and web communicati agencies Securities Co. operation and2024 conference on Ltd. and development
China Asset planning etc.Management
Co. Ltd.Conference
December 3 room of
Fullgoal Fund Company
FIYTA Field survey agencies Management operation and2024 Technology Company development
Building Limited planning etc.Conference Hongsike
December 9 room of Asset
Company
2024 FIYTA Field survey agencies Management
operation and
Technology (Beijing) Co. development
Building Ltd. planning etc."Quanjing Investors
Luyan" Online participating in
December website communicati the online
Company
12 2024 WeChat on on the Others collective
operation and
official network reception day development
account platform for planning etc.and APP investors
XIII. Formulation and implementation of market value management system and
valuation boost plan
Whether the Company has established a market value management system.No
Whether the Company has disclosed plans for valuation boost.No
XIV. Implementation of the action plan of "double improvement of quality and
return"
Whether the company has disclosed the announcement of the action plan of "double improvement of quality and
return".No
28Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Section 4 Corporate governance
I. Basic conditions of corporate governance
In 2024 the Company continued to improve its corporate governance structure in strict accordance with the
requirements of the Company Law the Securities Law and the normative documents issued by the CSRC on the
governance of listed companies and made efforts to enhance the construction of modern enterprise systems and
improve the standard operation level of the Company. As a result the corporate governance complied with the
relevant regulations of the CSRC.In strict accordance with the Company Law and other laws regulations normative documents and the Articles
of Association the Company has established and improved a standardized corporate governance structure and
rules of procedure formed a decision-making and operation management system with the Board of Shareholders
the Board of Directors the Board of Supervisors and the Company's managers as the main body and performed
various duties stipulated in the Company Law and the Articles of Association according to the law.The Board of Shareholders serving as the Company's organ of authority is responsible for electing and
replacing directors and supervisors deciding on their remuneration approving reports of the Board of Directors
reports of the Board of Supervisors the Company's profit distribution plan equity incentive plan and so on and for
making resolutions on major matters such as the Company's capital increase and decrease the issuance of
corporate bonds the Company's merger division dissolution liquidation or change of corporate form and the
amendment of the Articles of Association.The Board of Directors playing the role of "determining strategies making decisions and preventing risks" is
responsible for implementing the resolutions of the Board of Shareholders convening the Board of Shareholders
and reporting to it. In addition the Board of Directors is responsible for deciding the Company's external
investment asset acquisition and sale asset mortgage external guarantee related party transactions and other
matters within the scope authorized by the Board of Shareholders making decisions on the establishment of the
Company's internal management organization and branches and for appointing or dismissing the Company's
general manager secretary of the Board of Directors and other senior officers. The Board of Directors consists of
nine directors including three independent directors and has a strategy and ESG committee an audit committee
and a nomination remuneration and appraisal committee.The Board of Supervisors is responsible for reviewing the Company's regular reports checking the Company's
financial situation supervising the directors and senior officers to perform their duties in accordance with the law
and proposing the dismissal of directors and senior officers who violate laws administrative regulations the
Articles of Association or resolutions of the Board of Shareholders. The Board of Supervisors consists of three
supervisors including an employee representative supervisor.The managers are responsible for "operation implementation and management". The general manager is
responsible to the Board of Directors presides over the production and operation management under the
leadership of the Board of Directors organizes the implementation of the Board of Directors' resolutions within the
scope of authorization of the Board of Directors and reports to the Board. Besides the general manager is
responsible for organizing the implementation of the Company's annual development plan and business plan
29Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
proposing the investment scheme and plan annual financial budget plan final account plan profit distribution plan
and loss recovery plan the capital increase and decrease plan etc.Whether the actual corporate governance significantly conflicts with the laws administrative regulations and CSRC
regulations on the governance of listed companies
No
II. The Company's independence from the controlling shareholder and the actual
controller in ensuring the Company's assets personnel finance organization
business etc.The Company and the controlling shareholder have achieved the "five separations" in terms of business
personnel assets organization and finance and the Company has independent and complete business and
independent operation ability.Business: The Company is mainly engaged in the watch industry with independent production auxiliary
production supporting facilities and procurement and sales systems and there is no horizontal competition
between the Company and the controlling shareholder.Personnel: The Company has an independent organization and a sound system regarding labor personnel
and wage management. Except for the directors Mr. Wang Bo Mr. Li Peiyin Mr. Deng Jianghu Mr. Guo Gaohang
Madam Hu Min the chairman of the board of supervisors and Mr. Yuan Tianbo the supervisor who serve in
shareholder entities other directors and senior officers hold no dual posts in shareholder entities and financial
personnel hold no part-time posts in affiliates.Assets: The Company and the controlling shareholder have clearly established property rights and enjoy
independent legal person property rights over the Company's assets. The Company's assets are fully independent
of the controlling shareholder and the Company independently owns trademarks such as "FIYTA" and "Harmony".Organization: The Board of Directors Board of Supervisors and other internal organizations of the Company
are sound and operate independently and there is no subordination or co-location with the functional departments
of the controlling shareholder. The controlling shareholder exercises its rights and assumes corresponding
obligations in accordance with the law and has not directly or indirectly intervened in the Company's business
activities by exceeding the authority of the Board of Shareholders.Finance: The Company has set up an independent financial department established a sophisticated and
independent financial accounting system and financial management system and opened an account in the bank
independently. The controlling shareholder has not interfered with the Company's financial accounting activities.III. Horizontal competition
Not applicable
IV. Information on the annual general meeting and extraordinary general meeting
held during the reporting period
1. General meeting of shareholders during the reporting period
Session Type of Investormeeting Date of meeting Disclosure date
Resolutions made at the
Proportion meeting
30Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
of
participatio
n
For details please refer
to the Announcement on
2023 Annual Annual Resolutions of the 2023
General general 42.01% April 18 2024 April 19 2024 Annual General Meeting
Meeting meeting 2024-016 disclosed by
the Company on the
CNINFO website.For details please refer
The first to the Announcement of
extraordinary Extraordinary the Resolution of the
general general 43.48% September 6 2024 September 7 First Extraordinary
meeting in meeting 2024 General Meeting in 2024
2024 No. 2024-034 disclosedby the Company on the
CNINFO website.For details please refer
The second to the Announcement of
extraordinary Extraordinary the Resolution of the
general general 41.09% November 28 November 29 Second Extraordinary
meeting in meeting 2024 2024 General Meeting in 2024
2024 No. 2024-044 disclosedby the Company on the
CNINFO website.
2. Preferred shareholders with restored voting rights request to convene a temporary
general meeting
Not applicable
31Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
V. Members of the directors supervisors and senior officers
1. Basic information
Number Number Number Numberof shares of shares of Other of
Reasons
held at shares increases shares for
Name Gende Ag Title Employmen Beginning date Ending date of the
increase reduced and held at changes
r e t status of term term beginnin d in thecurrent in the decrease the end
in share
g of the current s of the increase
period period(shares) period (shares) period
or
(shares) (shares) (shares) decrease
Zhang
Xuhua Male 48 Chairman Incumbent July 1 2021
September 5
202700000
Wang Bo Male 46 Director Incumbent September 6 September 52024 2027 0 0 0 0 0
Li Peiyin Male 39 Director Incumbent February 24 September 52021 2027 0 0 0 0 0
Deng September 8 September 5
Jianghu Male 41 Director Incumbent 2021 2027 0 0 0 0 0
Guo
Gaohang Male 38 Director Incumbent
December 28 September 5
2023202700000
Director Incumbent February 24 September 5
Pan Bo Male 49 2021 2027General January 15 September 5 230050 0 0 0 230050 Not
manager Incumbent 2021 2027 applicable
Wang Independen
Susheng Male 56 t director Incumbent
September 6 September 5
2024202700000
Wang
Wenbo Male 43
Independen
t director Incumbent
September 6 September 5
2024202700000
Cao
Guangzhon Male 57 Independent director Incumbent
September 6 September 5
g 2024 2027
00000
Chairman
Femal of the Incumbent Jan. 4 2024 September 5Hu Min e 40 Board of 2027 0 0 0 0 0Supervisors
Supervisor Incumbent December 28 September 5
32Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
20232027
Yuan Male 45 Supervisor Incumbent December 28 September 5Tianbo 2023 2027 0 0 0 0 0
Hu Jing Femal 54 Supervisor Incumbent September 7 September 5e 2021 2027 9000 0 0 0 9000
Deputy
general Incumbent August 8 2014 September 5
Lu Wanjun Male 58 manager 2027 160050 0 0 0 160050
General Incumbent October 25 September 5counsel 2021 2027
Liu Deputy
Xiaoming Male 54 general Incumbent 17 October 2016
September 5
2027 160050 0 0 0 160050manager
Deputy
Li Ming Male 52 general Incumbent 17 October 2016 September 52027 160090 0 0 0 160090manager
Chief February 6 September 5
accountant Incumbent 2022 2027
Song Male 58 SecretaryYaoming of the September 5 0 0 0 0 0
Board of Incumbent April 21 2022 2027
Directors
Tang Deputy
Haiyuan Male 52 general Incumbent
September 29 September 5
manager 2019 2027
107550000107550
Xiao Yi Male 51 Director Resigned February 24 September 62021 2024 0 0 0 0 0
Wang Male 55 Independen September 11 September 6Jianxin t director Resigned 2018 2024 0 0 0 0 0
Zhong Male 50 Independen September 11 September 6Hongming t director Resigned 2018 2024 0 0 0 0 0
Tang Male 51 Independen Resigned September 11 September 6Xiaofei t director 2018 2024 0 0 0 0 0
Total -- -- -- -- -- -- 826790 0 0 0 826790 --
Whether there was any resignation of directors and supervisors and dismissal of senior officers during the reporting period
No
33Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
(IV) Change in directors supervisors and senior officers
Name Position held Type Date Reasons
Zhang Xuhua Chairman Be elected September 6 2024 Change of termDirector Be elected September 6 2024 Change of term
Wang Bo Director Be elected September 6 2024 Change of term
Li Peiyin Director Be elected September 6 2024 Change of term
Deng Jianghu Director Be elected September 6 2024 Change of term
Guo Gaohang Director Be elected September 6 2024 Change of term
Pan Bo Director Be elected September 6 2024 Change of term
General manager Employment September 6 2024 Change of term
Wang Susheng Independent director Be elected September 6 2024 Change of term
Wang Wenbo Independent director Be elected September 6 2024 Change of term
Cao Guangzhong Independent director Be elected September 6 2024 Change of term
Chairman of the
Hu Min Board of Supervisors Be elected September 6 2024 Change of term
Supervisor Be elected September 6 2024 Change of term
Yuan Tianbo Supervisor Be elected September 6 2024 Change of term
Hu Jing Employee supervisor Be elected August 26 2024 Change of term
Deputy general
Lu Wanjun manager and general Employment September 6 2024 Change of term
counsel
Liu Xiaoming Deputy generalmanager Employment September 6 2024 Change of term
Li Ming Deputy generalmanager Employment September 6 2024 Change of term
Chief accountant and
Song Yaoming secretary of Board of Employment September 6 2024 Change of term
Directors
Tang Haiyuan Deputy generalmanager Employment September 6 2024 Change of term
Xiao Yi Director Resignation uponexpiration of term September 6 2024 Change of term
Wang Jianxin Independent director Resignation uponexpiration of term September 6 2024 Change of term
Zhong Hongming Independent director Resignation uponexpiration of term September 6 2024 Change of term
Tang Xiaofei Independent director Resignation uponexpiration of term September 6 2024 Change of term
2. Work performance information
Professional background main work experience and current main responsibilities of the current directors
supervisors and senior officers
Mr. Zhang Xuhua born in March 1977. He holds a Master Degree of Business Administration from Xi'an
Jiaotong University and an EMBA from China Europe International Business School. He currently serves as the
chairman of the Company. He once acted as the managing director deputy general manager assistant general
manager general manager of shopping center business department of Rainbow Digital Commercial Co. Ltd.general manager of Chengdu Company director of commodity center general manager of Dreams-On general
manager of AVIC Plaza Project deputy manager of distribution center and an employee of the marketing
department of Shenzhen Vanke Fine Products Manufacturing Co. Ltd.Mr. Wang Bo born in July 1979 holds a Master Degree of Business Administration from Renmin University of
China. He currently serves as a director of the Company director of CPC organization department/human
34Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
resources department of AVIC INNO director of Shenzhen Shanghai Hotel director of Shennan Circuit Co. Ltd.director of Tianma Microelectronics Co. Ltd. director of AVIC International Holdings (Zhuhai) Co. Ltd. and
director of AVIC International Supply Chain Technology Co. Ltd. He once acted as the director of the human
resources department of China Aviation Technology Shenzhen Co. Ltd. the director of human resources
department of Shenzhen CATIC Real Estate Co. Ltd. the director of the human resources department of China
Aviation Technology Shenzhen Co. Ltd. and the deputy secretary of the Party Committee and general manager of
Grand Skylight Hotels Management Co. Ltd.Mr. Li Peiyin born in September 1986 is a certified public accountant and senior accountant. He holds a
Master Degree in Accounting from Xiamen University and an MBA from Missouri State University. He currently
serves as a director of the Company the head of the financial management department of AVIC INNO the director
of AVIC International Supply Chain Technology Co. Ltd. the director of Shennan Circuits Co. Ltd. the director of
Tianma Microelectronics Co. Ltd. the director of Continental Aerospace Technologies Holding Limited and the
director of Continental Aerospace Technologies Group Co. Ltd.Mr. Deng Jianghu born in July 1984 holds a Master Degree in Business Administration from Northeast
Normal University. He currently serves as a director of the Company the director of the operation management
department of AVIC INNO the director of Tianma Microelectronics Co. Ltd. the director of Shennan Circuits Co.Ltd. the director of AVIC Huadong Photoelectric Co. Ltd. and the chairman of Castic-SMP Machinery Corp. Ltd.He once acted as the manager and deputy manager of the planning and operation department of the Company the
director of the modern service industry office of China Aviation Technology Shenzhen Co. Ltd. and the senior
project manager of strategic operation management of the strategic development department of Shennan Circuits
Co. Ltd.Mr. Guo Gaohang born in March 1987 holds a Master Degree in Materials Physics and Chemistry from
Harbin Institute of Technology. He currently serves as a director of the Company the deputy director of the
planning and development department of AVIC INNO (leading) a director of AVIC International Supply Chain
Technology Co. Ltd. a director of Tianma Microelectronics Co. Ltd. a director of Shennan Circuits Co. Ltd. and
a director of Rainbow Digital Commercial Co. Ltd. He once acted as strategic operation management project
manager of planning and operation department of China Aviation Technology Shenzhen Co. Ltd. senior
semiconductor industry analyst and semiconductor industry analyst of TrendForce Consulting (Shenzhen) Co. Ltd.and packaging and testing process design engineer of Shenzhen STS Microelectronics Co. Ltd.Mr. Pan Bo born in March 1976 is an engineer. He holds a Bachelor Degree in Mechanical and Electrical
Engineering from the Beijing University of Aeronautics and Astronautics and an EMBA from China Europe
International Business School. He currently serves as the Managing Director of the Company. He once acted as
the deputy general manager secretary of the Board of Directors and assistant to the general manager of the
Company the general manager deputy general manager assistant to the general manager manager of the sales
department and manager of the logistics department of FIYTA Sales Co. Ltd.Mr. Wang Susheng born in March 1969 is a certified public accountant a doctor of law from Peking
University and holds an MBA from University of Chicago. He currently serves as an independent director of the
Company a professor of Southern University of Science and Technology and an independent director of
Changyuan Technology Group Ltd. Dowell Service Urban Operation Service Group Co. Ltd. (02352.HK) and
CALB Group Co. Ltd. (03931.HK). He once acted as the director and professor of the economic management
department of Harbin Institute of Technology (Shenzhen Graduate School) and the director of CDB Sino-Swiss
Venture Capital Fund Management Co. Ltd.
35Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Mr. Wang Wenbo born in December 1982 holds a Doctoral Degree in Marketing from New York University.He currently serves as an independent director of the Company an associate professor tenured professor and
doctoral supervisor of the Business School of the Hong Kong University of Science and Technology. He once acted
as a professor of WeBank × Joint Laboratory Scientific Committee on Artificial Intelligence of Hong Kong University
of Science and Technology and a technical expert consultant of many leading companies in the industry.Mr. Cao Guangzhong born in May 1968 holds a Doctoral Degree in Mechatronic Engineering from Xi'an
Jiaotong University. He currently serves as an independent director of the Company a professor of Shenzhen
University an independent director of Shenzhen Colibri Technologies Co. Ltd. and Shenzhen Sinvo Automation
Co. Ltd. a standing member of the Computer Application Federation of China Instrument and Control Society a
standing director of Guangdong Automation Society a director of Guangdong Artificial Intelligence and Robotics
Society a vice chairman of Shenzhen Robotics Association and a science and technology review expert of the
National Natural Science Foundation of China the Ministry of Science and Technology the Ministry of Industry and
Information Technology and Guangdong Province. He once acted as an associate professor of Mechatronics at
Xi'an Jiaotong University and a postdoctoral researcher at Korea Advanced Institute of Science and Technology
(KAIST).Madam Hu Min born in May 1985 is an economist and holds a Master Degree in Civil Procedure Law from
Peking University. She currently serves as the chairman of the Board of Supervisors of the Company the chief
auditor of AVIC INNO the head of the audit and legal Department the director of AVIC International Supply Chain
Technology Co. Ltd. the director of AVIC International Holding Limited the director of China Aviation Technology
Beijing Co. Ltd. the supervisor of Shennan Circuits Co. Ltd. the supervisor of Rainbow Digital Commercial Co.Ltd. and the supervisor of Tianma Microelectronics Co. Ltd. She once acted as the general counsel and general
manager of the legal affairs and discipline inspection audit department the deputy general counsel and general
manager of the legal affairs and contract management department the general manager of legal affairs and
contract management and audit supervision department the deputy general manager of the legal affair and
contract management department of China National Aero-technology International Engineering Corporation.Mr. Yuan Tianbo born in October 1980 is an economist and holds a Master Degree in Management Science
and Engineering from Northwestern Polytechnical University. He currently serves as the supervisor of the
Company the deputy director of the discipline inspection department of AVIC INNO (leading) and the director of
Boyu Dongfang Co. Ltd. He once acted as the deputy general manager (in charge of work) and general manager
assistant of Boyu Dongfang Co. Ltd. general manager and deputy general manager of China Aviation Technology
Qinghai Co. Ltd. director of the administration and human resources department and director of the development
department of Boyu Dongfang Co. Ltd. and the recruitment management post of the human resource department
of China Aviation Technology Shenzhen Co. Ltd.Madam Hu Jing born in September 1971 is an accountant and holds a Bachelor Degree in Accounting from
Jiangxi University of Finance and Economics. She currently serves as the employee representative supervisor and
senior tax manager of the finance department of the Company. She once acted as the senior business manager of
the audit department the fund manager of the finance department and the tax supervisor of the Company.Mr. Lu Wanjun born in February 1967 is an accountant and holds an EMBA from China Europe International
Business School. He currently serves as the deputy general manager and general counsel of the Company. He
once acted as the assistant to the general manager of the Company the executive deputy general manager
deputy general manager assistant to the general manager and manager of the financial department of Shenzhen
Harmony World Watch Centre Co. Ltd.
36Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Mr. Liu Xiaoming born in July 1971 is an engineer and economist. He holds a Bachelor Degree in
Manufacturing Engineering from the Beijing University of Aeronautics and Astronautics and an EMBA from China
Europe International Business School. He currently serves as the deputy general manager of the Company. He
once acted as the assistant to the general manager of the Company the deputy general manager and assistant to
the general manager of Shenzhen Harmony World Watch Centre Co. Ltd.Mr. Li Ming born in September 1973. He holds a Bachelor Degree in Marketing from Zhongnan University of
Finance and Economics and an EMBA from China Europe International Business School. He currently serves as
the deputy general manager of the Company. He once acted as the assistant general manager and director of
human resources department of the Company deputy general manager assistant general manager and manager
of human resources department of Shenzhen Harmony World Watch Centre Co. Ltd.; the director of human
resources and general manager of marketing center of CNC Shenzhen Branch; the key account manager and
market planning manager of Shenzhen Branch of China Telecom.Mr. Song Yaoming born in July 1967 is a senior accountant and holds a Master Degree in Economics from
Shaanxi University of Finance and Economics and an EMBA from China Europe International Business School. He
currently serves as the chief accountant and secretary of the Board of Directors of the Company. He once acted as
the deputy general manager and chief accountant of Rainbow Digital Commercial Co. Ltd. the director of
Shenzhen Aoxuan Investment Co. Ltd. the director of Shenzhen Aoer Investment Development Co. Ltd. and the
deputy manager and accountant of the financial department of Shenyang Jinbei Automobile Co. Ltd.Mr. Tang Haiyuan born in February 1973 is a senior engineer. He holds a Bachelor Degree in Plastic
Forming Technology and Equipment from Hefei University of Technology and an EMBA from China Europe
International Business School. He currently serves as the deputy general manager of the Company. He once acted
as the general manager deputy general manager assistant general manager manager of quality department
manager and deputy manager of engineering technology department of Shenzhen FIYTA Precision Timing
Manufacturing Co. Ltd. and assistant general manager of technology and manager of technology department of
Shenzhen FIYTA STD Co. Ltd.Positions held in shareholders
Whether to
receive
Name Shareholders' Positions held in Beginning date of
Ending remuneration
name shareholders term date of allowance fromterm the
shareholder
unit
Director of CPC
Wang Bo AVIC INNO Co. organizationLtd. department/human January 8 2025 Yes
resources department
Director of financial
Li Peiyin AVIC INNO Co.Ltd. management January 8 2025 Yesdepartment
Director of Operations
Deng Jianghu AVIC INNO Co.Ltd. Management January 8 2025 YesDepartment.Deputy director of the
Guo Gaohang AVIC INNO Co. planning andLtd. development department January 8 2025 Yes
(leading)
37Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
AVIC INNO Co. Chief auditor head of
Ltd. audit and legal January 8 2025 Yes
Hu Min departmentAVIC
International Director January 3 2025 No
Holding Limited
Yuan Tianbo AVIC INNO Co.Deputy director of
Ltd. discipline inspection January 8 2025 Yesdepartment (leading)
Description of
the positions
held in Not applicable
shareholders
Position in other entities
Whether to
Other units Positions held Beginning date of Terminatio
receive
Name in other term n of term remuneration
Name entities allowancesDate Date from other
organizations
Shenzhen Shanghai Hotel Director January 10 2018 No
Shennan Circuits Co. Ltd. Director November 13 2024 No
Tianma Microelectronics Co.Wang Ltd. Director November 18 2024 No
Bo AVIC International Holdings
(Zhuhai) Co. Ltd. Director January 3 2025 No
AVIC International Supply
Chain Technology Co. Ltd. Director January 3 2025 No
AVIC International Supply
Chain Technology Co. Ltd. Director March 17 2021 No
Continental Aerospace
Technologies Group Co. Ltd. Director March 29 2021 No
Li Peiyin Shennan Circuits Co. Ltd. Director April 6 2021 No
Continental Aerospace
Technologies Holding Limited Director April 1 2022 No
Tianma Microelectronics Co.Ltd. Director July 8 2022 No
Tianma Microelectronics Co.Ltd. Director November 29 2021 No
Deng Shennan Circuits Co. Ltd. Director April 7 2022 No
Jianghu AVIC Huadong Photoelectric
Co. Ltd. Director November 27 2023 No
Castic-SMP Machinery Corp.Ltd. Chairman December 30 2024 No
AVIC International Supply
Chain Technology Co. Ltd. Director November 27 2023 No
Guo Tianma Microelectronics Co.Gaohan Ltd. Director March 6 2024 No
g Shennan Circuits Co. Ltd. Director April 18 2024 No
Rainbow Digital Commercial
Co. Ltd. Director October 15 2024 No
Southern University of Science
and Technology Professor April 1 2017 YesWang
Susheng Dowell Service UrbanOperation Service Group Co. Independent
Ltd. (02352.HK) director
December 13 2020 Yes
38Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Changyuan Technology Group Independent
Ltd. director August 9 2021 Yes
CALB Group Co. Ltd. Independent
(03931.HK) director October 6 2022 Yes
Associate
professor
Wang
Wenbo HKUST Business School
tenured
professor July 2 2018 Yes
and doctoral
supervisor
Shenzhen University Professor February 29 2000 Yes
Cao Shenzhen Colibri Technologies Independent
Guangz Co. Ltd. director October 15 2019 Yes
hong Shenzhen Sinvo Automation Independent
Co. Ltd. director October 16 2020 Yes
AVIC International Supply
Chain Technology Co. Ltd. Director July 20 2022 No
China Aviation Technology
Beijing Co. Ltd. Director January 3 2025 No
Hu Min Shennan Circuits Co. Ltd. Supervisor April 18 2024 No
Rainbow Digital Commercial
Co. Ltd. Supervisor October 15 2024 No
Tianma Microelectronics Co.Ltd. Supervisor February 26 2025 No
Yuan
Tianbo Boyu Dongfang Co. Ltd. Director August 1 2022 No
Explanat
ion of
serving Not applicable
in other
entities
Punishments imposed by securities regulators on the Company's incumbent directors supervisors and senior
officers and those who left their posts during the reporting period in the past three years
Not applicable
3. Remuneration of directors supervisors and senior officers
Decision-making procedures basis for determination and actual payment of remuneration of directors supervisors
and senior officers
In terms of the remuneration of internal directors and senior officers of the Company an annual salary system is
adopted with the structure of basic annual salary and performance annual salary. The remuneration of internal
directors is implemented after the approval by the Board of Shareholders and the remuneration of senior officers is
determined after the approval by the Board of Directors. The senior officers are assessed in accordance with the
Management Measures for the Assessment of Operating Performance of Managers and the Management
Measures for the Remuneration of Managers.Except for independent directors who receive allowances from the Company other external directors and
shareholder representative supervisors receive no remuneration from the Company. The remuneration of employee
representative supervisors is determined in accordance with the Company's employee remuneration management
measures.Remuneration of directors supervisors and senior officers of the Company during the reporting period
Unit: RMB'0000
39Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Total Whether get
Employment compensatio paid fromName Gender Age Title status n before tax relatedreceived from parties of
the Company COOEC
Zhang Xuhua Male 48 Chairman Incumbent 206.47 No
Wang Bo Male 46 Director Incumbent 0 Yes
Li Peiyin Male 39 Director Incumbent 0 Yes
Deng Jianghu Male 41 Director Incumbent 0 Yes
Guo
Gaohang Male 38 Director Incumbent 0 Yes
Pan Bo Male 49 Managingdirector Incumbent 182.92 No
Wang
Susheng Male 56
Independent
director Incumbent 2.86 No
Wang Wenbo Male 43 Independentdirector Incumbent 2.86 No
Cao Independent
Guangzhong Male 57 director Incumbent 2.86 No
Chairman of
Hu Min Female 40 the Board of Incumbent 0 Yes
Supervisors
Yuan Tianbo Male 45 Supervisor Incumbent 0 Yes
Hu Jing Female 54 Employeesupervisor Incumbent 43.19 No
Deputy
general
Lu Wanjun Male 58 manager and Incumbent 182.38 No
general
counsel
Deputy
Liu Xiaoming Male 54 general Incumbent 229.38 No
manager
Deputy
Li Ming Male 52 general Incumbent 175.99 No
manager
Chief
Song accountant
Yaoming Male 58 and secretary Incumbent 180.76 Noof Board of
Directors
Tang Deputy
Haiyuan Male 52 general Incumbent 178.97 Nomanager
Xiao Yi Male 51 Director Resigned 0 Yes
Wang Jianxin Male 55 Independentdirector Resigned 5.39 No
Zhong Independent
Hongming Male 50 director Resigned 5.39 No
Tang Xiaofei Male 51 Independentdirector Resigned 5.39 No
Total -- -- -- -- 1404.81 --
Other circumstances
Not applicable
40Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
VI. Duty fulfillment of the directors during the reporting period
1. Information on the Board of Directors during the reporting period
Session Date of meeting Disclosure date Resolutions made at the meeting
For details please refer to the
The 17th meeting of the Announcement on the 17th Meeting of
10th Board of Directors Jan. 4 2024 January 6 2024 the 10th Board of Directors 2024-002disclosed by the Company on the
CNINFO website.For details please refer to the
The 18th meeting of the Announcement on the 18th Meeting of
10th Board of Directors March 12 2024 Mar. 14 2024 the 10th Board of Directors 2024-006disclosed by the Company on the
CNINFO website.For details please refer to the
The 19th meeting of the Announcement on the 19th Meeting of
10th Board of Directors April 23 2024 April 25 2024 the 10th Board of Directors 2024-018disclosed by the Company on the
CNINFO website.For details please refer to the
The 20th meeting of the Announcement on the 20th Meeting of
10th Board of Directors August 19 2024 August 21 2024 the 10th Board of Directors 2024-024disclosed by the Company on the
CNINFO website.For details please refer to the
The first meeting of the September 6 September 7 Announcement on the 1st Meeting of the
11th Board of Directors 2024 2024 11th Board of Directors 2024-035disclosed by the Company on the
CNINFO website.The second meeting of
the 11th Board of October 24 2024 October 26 2024 Deliberate and adopt the Third Quarterly
Directors Report in 2024 at the meeting
For details please refer to the
The third meeting of the November 7 November 9 Announcement on the 3rd Meeting of the
11th Board of Directors 2024 2024 11th Board of Directors 2024-040disclosed by the Company on the
CNINFO website.For details please refer to the
The fourth meeting of the December 30 Announcement on the 4th Meeting of the
11th Board of Directors 2024 January 2 2025 11th Board of Directors 2025-001disclosed by the Company on the
CNINFO website.
2. Attendance of directors at board meetings and general meetings
Attendance of directors at board meetings and general meetings
Number Numbe Failed to
of board r of Number of Number of attend
meeting board board board board Number of
Name of meetin meetings meetings Absencess to be meetings in general
directors attended gs attended by attended by
at board
attende communica authorized meetings
person for meetings
during two attended
the d on tion person consecutiv
reporting site e times
41Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
period (Yes/No)
Zhang Xuhua 8 3 5 0 0 No 3
Wang Bo 4 1 3 0 0 No 0
Li Peiyin 8 2 6 0 0 No 0
Deng Jianghu 8 2 6 0 0 No 0
Guo Gaohang 8 4 4 0 0 No 0
Pan Bo 8 4 4 0 0 No 0
Wang Susheng 4 1 3 0 0 No 1
Wang Wenbo 4 1 3 0 0 No 1
Cao Guangzhong 4 1 3 0 0 No 1
Xiao Yi
(resigned) 4 3 1 0 0 No 0
Wang Jianxin
(resigned) 4 3 1 0 0 No 2
Zhong Hongming
(resigned) 4 3 1 0 0 No 2
Tang Xiaofei
(resigned) 4 3 1 0 0 No 2
Description of the failure to attend the board meetings in person for two consecutive times
Not applicable
3. The directors’ objections to the relevant matters
Does the director raise any objection to the relevant matters of the Company
No
4. Other descriptions of duty fulfillment by the directors
Whether the relevant proposals from the directors to the Company have been adopted
Yes
Statement on the adoption or rejection of proposals from the directors to the Company
During the reporting period the Board of Directors gave full play to the role of "determining strategies making
decisions and preventing risks". The directors of the Company attended the meetings of the Board of Directors on
time in strict accordance with the Company Law the Code on Governance of Listed Companies and other laws and
regulations and the Articles of Association diligently performed their duties and rights and fully deliberated
offered suggestions and conscientiously voted on the resolutions of the Board of Directors. The Company fully
considered and adopted the constructive opinions put forward by the directors in terms of development strategy
business decision-making and internal control management.
42Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
VII. Special committees under the board of directors during the reporting period
The
Board of NumberCommittee Member of Important comments PerformanceDirector Date of meeting Content of the meeting and suggestions of other Objections (if
Name s description meeting proposed duties any)s held
session
All members fully
communicated and
discussed the
corporate
governance ESG
management
Chairman of the development
Committee: planning etc. and
Zhang Xuhua Deliberate and adopt the work suggested that theThe Members: Deng Company should
10th Jianghu Guo 1 March 12 2024 report and ESG report of the
Gaohang Pan Board of Directors for 2023.continue to improve
the level of
Bo and Tang standardized
Strategy Xiaofei operation strengthen
Committee risk control
(note) management andcontinuously improve
the level of scientific
and technological
innovation.Chairman of the
Committee: Deliberate and adopt the
Zhang Xuhua proposal on developing the
The Members: Deng 1 August 19 2024 development planning11th Jianghu Guo management measures and
Gaohang Pan medium- and long-term
Bo and Wang development plans.Wenbo
Total 2
43Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Deliberate and adopt the
Annual Report in 2023 Final
Account Report in 2023 Profit
Distribution in 2023 Daily All members fully
Related Party Transaction communicated and
Estimation in 2024 Total Bank discussed the
Credit Limit Estimation in Company's internal
2024 and Guarantee Limit and external audit
Estimation for Subsidiaries in work internal control
2024 Renewal of the management annual
Accounting Firm Internal performance ofMarch 12 2024 Control Self-evaluation Report accounting firms and
Chairman of the in 2023 Internal Audit Report other matters and
Committee: in Q4 2023 Internal Audit suggested that the
Wang Jianxin Report in 2023 and Company should
The Members: Li Assessment Report on the continue to improve
10th Peiyin Guo 3 Performance of Accounting the internal control
Gaohang Firms and the Audit management system
Zhong Committee's Report on the and strengthen riskAudit
Committee Hongming and Performance of Supervision
management.Tang Xiaofei Duties over Accounting Firms
in 2023.Deliberate and adopt the Q1
report in 2024 the internal
April 23 2024 audit report of Q1 in 2024 and
the internal control system
report in 2023.Deliberate and adopt the semi-
August 19 2024 annual report in 2024 and theinternal audit report for Q2 of
2024.
Chairman of the Deliberate and adopt the
Committee: September 6 proposal on the appointment of
The Wang Susheng 2024 the chief accountant and
11th Members: Li 3 secretary of the Board of
Peiyin Guo Directors.Gaohang Wang October 25 2024 Deliberate and adopt the Q3
44Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Wenbo and report in 2024 and the internal
Cao audit report of Q3 in 2024.Guangzhong All members heard
the Company's
proposal on
November 1 Deliberate and adopt the changing the
2024 proposal on the proposed accounting firm andchange of accounting firm. agreed to submit the
change to the Board
of Directors for
deliberation.Total 6
Deliberate and adopt the
proposal on the election of
Jan. 4 2024 members of the special
committees of the Board of
Directors.Deliberate and adopt the
proposal on the remuneration
Chairman of the March 12 2024 of directors and senior officers
Committee: and the repurchasing and
Nomination Zhong cancellation of some A-share
Remuneratio Hongming restricted stocks in 2023.n and The Members: Xiao 3 All
Evaluation 10th Yi Guo committee
Committee Gaohang Wang
Jianxin and Deliberate and adopt the
members
Tang Xiaofei proposal on the general
reviewed the
election of non-independent qualifications
August 19 2024 directors and independent
of the
directors of the Board of candidates
Directors and the repurchasing for directors
and cancellation of some A- of the 11th
share restricted stocks. Board ofDirectors of
the
Company
45Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
expressed
their
comments
and agreed
to submit the
proposals to
the Board of
Directors for
deliberation.Deliberate and adopt the
proposal on the election of the
chairman and the appointment
of the general manager
Chairman of the September 6 deputy general manager
Committee: Cao 2024 general counsel chief
Guangzhong accountant and secretary of
The Members: the Board of Directors and
11th Wang Bo Guo 2 securities affairs
Gaohang Wang representative.Wenbo and Deliberate and adopt the
Wang Susheng proposal on the achievement
December 30 for lifting the restriction
2024 conditions during the third
lifting period of the Phase-II
restricted stock incentive plan.Total 5
Note: Upon the deliberation and approval at the 4th Meeting of the 11th Board of Directors held by the Company on December 30 2024 the Board of Directors
agreed to adjust the "Strategy Committee" to the "Strategy and ESG Committee".
46Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
VIII. Work of the Board of Supervisors
Whether the Board of Supervisors found any risk in the Company during the supervision within the reporting period
No
IX. Employees
1. Number of employees disciplines and educational status
Number of in-service employees of the parent
company at the end of the reporting period (person) 204
Number of in-service employees of major subsidiaries
at the end of the reporting period (person) 3446
Total number of in-service employees at the end of the
reporting period (person) 3650
Total number of salaried employees in the current
period (person) 3650
Number of retired employees whose expenses shall be
borne by the parent company and major subsidiaries 0
(person)
Professional composition
Professional composition category Number of each discipline (person)
Production personnel 297
Sales personnel 2488
Technical personnel 292
Financial personnel 105
Administrative personnel 468
Total 3650
Education level
Education level category Number
Master's degree or above 84
Undergraduate 740
College 1162
Below junior college 1664
Total 3650
2. Remuneration policy
In combination with the business development planning and management conditions the Company adhering
to the core concept of value creation has formulated the remuneration policy under the principles of hierarchical
management budget control performance orientation efficiency priority fairness positive incentive and long-term
planning and established a sophisticated compensation system based on the annual salary assessment system
for the middle and senior officers the post-performance salary system for employees and the salary system for
joint production and efficiency of production and operation personnel and took the following management
measures:
47Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Payroll management: Carry out the annual salary budget in combination with annual business planning
comprehensively consider factors such as market salary level organizational efficiency improvement and talent
team adjustment to regulate and control the total salary and achieve the management objectives of benefit
orientation positive incentive classification management and distribution adjustment;
Classification and hierarchical management: Establish a differentiated position and rank system according to
the characteristics of the position and on this basis set up a matching standardized salary framework in
combination with the market situation;
Value as the key link co-creation and sharing: The Company has designed the incentive system according to
the closed loop of the value chain of value creation evaluation and distribution and established a value evaluation
system and real-time incentive system consistent with the strategic development goals forming an incentive
mechanism in which the salary is based on the Company's revenues and individual performance and the
incremental salary is prioritized to core key positions and outstanding talents.
3. Training plan
Talent is the primary productive force driving the Company's development. Considering that the Company has
attached great importance to the development and training of talents. In order to cultivate a high-quality talent team
support the implementation of the Company's strategy and create an organizational learning atmosphere the
Company has formulated the Employee Training Management System established a systematic employee learning
and growth system and built an online learning platform + offline training center so as to provide employees with
space for continuous improvement. For details please refer to Chapter 7 on employee training and development in
the 2024 Environmental Social and Governance (ESG) Report disclosed by the Company on March 14 2025 on
the CNINFO website.
4. Labor outsourcing
Not applicable
X. Profit distribution and the increase of share capital by converting capital
reserves
Formulation implementation or adjustment of profit distribution policies especially cash dividend policies during
the reporting period
The Company's profit distribution plan in 2023 has been deliberated and adopted during the 18th Meeting of
the 10th Board of Directors on March 12 2024 and the Annual General Meeting in 2023 on April 18 2024. It was
resolved to distribute cash dividends of RMB 4.00 yuan (including tax) for every 10 shares to all shareholders
according to the total share capital on the equity registration date (deducting the shares in the special securities
account for repurchasing) when the profit distribution plan is implemented with 0 bonus share issued and no
share capital will be converted from reserves.During the period from the disclosure to the implementation of this equity distribution plan 9355763 B shares
in the Company's special securities account for repurchasing were canceled and the total share capital was
reduced from 415219970 shares to 405864207 shares. Based on the total share capital of 405864207 shares
on the equity registration date of the profit distribution plan the Company distributed cash dividends of RMB 4.00
48Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
yuan (including tax) for every 10 shares to all shareholders with the actual total amount of cash dividends payable
of RMB 162345682.80 yuan.The profit distribution plan has been implemented on June 14 2024. For details please refer to the
Announcement on the Implementation of Equity Distribution in 2023 No. 2024-022 disclosed by the Company on
the CNINFO website.(II) Special description of the cash dividend policy
Whether it complies with the provisions of the Articles of Association or the requirements of the
resolution of the general meeting Yes
Whether the criteria and ratio for dividend distribution are clear and explicit Yes
Whether the relevant decision-making procedures and mechanisms are complete Yes
Whether the independent directors have performed their duties and responsibilities and played their
due roles Yes
If the Company distributes no cash dividends the specific reasons and the next measures for Not
increasing the return level of investors shall be disclosed: applicable
Whether small and medium shareholders have adequate opportunities to express their opinions
and demands and whether their legitimate rights and interests have been adequately protected Yes
Whether the conditions and procedures are compliant and transparent in case of the cash dividend Not
policy adjusted or changed (if any): applicable
The Company was profitable during the reporting period and the parent company's profit distributable to
shareholders was positive but no cash dividend distribution plan was proposed
Not applicable
Profit distribution and the increase of share capital by converting capital reserves during the reporting period
Number of bonus shares per 10 shares (shares) 0
Number of dividends per 10 shares (RMB) (including
tax) 4.00
Equity base of distribution plan (shares) Total share capital on the equity rights registrationdate when the profit distribution plan is implemented
Cash dividends(yuan)(including tax) 162305602.80
Amount of cash dividends distributed in other ways
(such as share repurchasing) (yuan) 0.00
Total cash dividends (including other methods) (yuan) 162305602.80
Distributable profit (yuan) 1206072217.14
Proportion of total cash dividends (including other
methods) in total profit distribution amount 100%
Cash dividends this time
Others
Detailed description of proposals for profit distribution or capital reserve transfer
The Company's profit distribution plan for 2024 has been deliberated and adopted at the 5th meeting of the
11th Board of Directors on March 12 2025. It is proposed to distribute cash dividends of RMB 4.00 yuan
(including tax) for every 10 shares to all shareholders according to the total share capital on the equity
registration date when the profit distribution plan is implemented with 0 bonus share and no share capital will
be converted from reserves.If the total share capital of the Company changes after the disclosure of the profit distribution plan and
before its implementation the Company may adjust the total amount of distribution at fixed distribution ratio.The profit distribution plan shall be implemented after being deliberated and adopted at the General
Meeting.
49Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
XI. Implementation of the Company's equity incentive plan employee stock
ownership plan or other employee incentive measures
1. Equity incentive
(1) Phase-II restricted stock incentive plan
The Company decided to launch the Phase-II Restricted Stock Incentive Plan during the 23rd Meeting of 9th
Board of Directors on December 4 2020 and its first extraordinary shareholders' meeting of 2021 on January 6.Following approval at the 25th Meeting of 9th Board of Directors on January 15 2021 the Company ultimately
granted 7.66 million A-share restricted stocks to 135 incentive recipients at a price of RMB 7.60 per share. This
grant was completed and listed on January 29 2021. For details please refer to relevant announcements
disclosed on January 16 2021 on the CNINFO website. The specific implementation during the reporting period is
as follows:
Upon approval at the 18th meeting of the 10th Board of Directors and the 2023 Annual General Meeting of
Shareholders the company decided to repurchase and cancel 10020 A-share restricted stocks originally granted
to a former incentive recipient who had left the company but still held restricted stocks that were not yet released
from lock-up. For details please refer to the relevant announcements of the company disclosed on
www.cninfo.com.cn on March 14 April 19 and July 3 2024.Upon approval at the 18th meeting of the 10th Board of Directors and the 2023 Annual General Meeting of
Shareholders the company decided to repurchase and cancel 10020 A-share restricted stocks originally granted
to a former incentive recipient who had left the company but still held restricted stocks that were not yet released
from lock-up. For details please refer to the relevant announcements of the company disclosed on
www.cninfo.com.cn on March 14 April 19 and July 3 2024.Upon deliberation and approval at the 20th meeting of the 10th Board of Directors and the first extraordinary
general meeting in 2024 the Company decided to repurchase and cancel the 90180 A-share restricted stocks
originally granted to 2 former incentive recipients resigned and 1 former incentive recipient deceased which still
held restricted stocks that were not yet released from lock-up. For details please refer to the relevant
announcements of the company disclosed on www.cninfo.com.cn on August 21 September 7 and November 2
2024.
Upon deliberation and approval at the 4th meeting of the 11th Board of Directors of the Company the
conditions for lifting the restriction during the third period of the Phase-II restricted stock incentive plan have been
fulfilled and 2047420 A-share restricted stocks involving the lifting of the restriction had been listed and
circulated on February 5 2025. For details please refer to the relevant announcements of the company disclosed
on www.cninfo.com.cn on January 2 and January 23 2025.
50Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Equity incentives obtained by directors and senior managers of the Company
Unit: shares
Number
Number of stock Number Exercise Numbe Number
Number
Number of Numberof stock options of of
price of r of Market of Number restricte Grant price of
options newly shares shares stock price at the restricte of d stocks of restricte
Name Title held at granted
exercisabl exercise exercised option end of the d stocks sharese shares during the s held reporting held at unlocke newly restricted d stocksthe during during the d during granted stock held atbeginnin the reporting at the period the d in the
g of the reportin reporting
the during (yuan/shar the end
period reportin
period end of (yuan/shar beginnin current
year g g period (yuan/shar the e) g of the period
the e) of the
e) period period reportin periodperiod g period
Zhang
Xuhua Chairman 0 0 0 0 0 0 0 0 0 0 0
Wang Bo Director 0 0 0 0 0 0 0 0 0 0 0
Li Peiyin Director 0 0 0 0 0 0 0 0 0 0 0
Deng
Jianghu Director 0 0 0 0 0 0 0 0 0 0 0
Guo
Gaohang Director 0 0 0 0 0 0 0 0 0 0 0
Pan Bo Managingdirector 0 0 0 0 0 0 0 50100 0 0 50100
Wang Independe
Susheng nt director 0 0 0 0 0 0 0 0 0 0 0
Wang Independe
Wenbo nt director 0 0 0 0 0 0 0 0 0 0 0
Cao
Guangzhon Independent director 0 0 0 0 0 0 0 0 0 0 0g
Deputy
Lu Wanjun general 0 0 0 0 0 0 0 50100 0 0 50100
manager
51Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
and
general
counsel
Liu Deputy
Xiaoming general 0 0 0 0 0 0 0 50100 0 0 50100manager
Deputy
Li Ming general 0 0 0 0 0 0 0 50100 0 0 50100
manager
Chief
accountant
Song and
Yaoming secretary 0 0 0 0 0 0 0 0 0 0 0
of Board of
Directors
Tang Deputy
Haiyuan general 0 0 0 0 0 0 0 50100 0 0 50100manager
Xiao Yi Director(resigned) 0 0 0 0 0 0 0 0 0 0 0
Wang Independe
Jianxin nt director 0 0 0 0 0 0 0 0 0 0 0(resigned)
Zhong Independe
Hongming nt director 0 0 0 0 0 0 0 0 0 0 0(resigned)
Tang Independe
Xiaofei nt director 0 0 0 0 0 0 0 0 0 0 0(resigned)
Total -- 0 0 0 0 -- 0 -- 250500 0 0 -- 250500
52Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Appraisal mechanism and incentives for senior managers
In order to establish a sophisticated incentive and restraint mechanism for senior officers give full play to and
motivate their enthusiasm improve the operating capacity and economic benefits and ensure the realization of the
strategic objectives the Company has continuously improved the tenure system and contractual management of
senior officers assessed operating performances and objectives on an annual/tenure basis and promoted the
implementation of rigid rewards and punishments for assessment results reflecting strong incentives and hard
constraints for compensation payment and adhered to performance orientation to enhance effective incentives for
accurate assessment.
2. Implementation of employee stock ownership plan
Not applicable
3. Other employee incentive measures
Not applicable
XII. Construction and implementation of internal control system during the
reporting period
1. Construction and implementation of internal control system
In order to strengthen the internal control of the Company promote the standardized operation and healthy
development and protect the legitimate rights and interests of shareholders the Company has established a
sophisticated internal control system in accordance with the Company Law the Securities Law and other laws and
regulations and has effectively implemented it. During the reporting period the Company had no major defects or
important defects in internal control.
2. Details of major defects in internal control found during the reporting period
No
XIII. Management and control of subsidiaries during the reporting period
Not applicable
XIV. Internal control evaluation report or internal control audit report
1. Internal control evaluation report
Disclosure date of full text of
internal control evaluation March 14 2025
report
Disclosure index of full text of
internal control evaluation www.cninfo.com.cn
report
53Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Proportion of total assets of
units evaluated to total assets
in the Company's consolidated 100.00%
financial statement
Proportion of operating income
of units evaluated to the
operating income in the 100.00%
Company's consolidated
financial statement
Defect identification criteria
Type Section X Financial Reports Non-financial report
(1) Serious violation of national laws
administrative regulations and
normative documents;
(1) The defect involves the fraud of (2) The "Three Significant and One
directors supervisors and senior Major" matters have not gone
officers; through the collective decision-
(2) Correct the financial statements making procedure;
disclosed; (3) There is a serious loss of
(3) The certified public accountant management and technical
finds that there is a material personnel in key positions;
misstatement in the current financial (4) Important business involving theQualitative criteria statements but the internal control Company's production and operation
personnel fail to detect the lacks system control or system
misstatement in the process; failure occurs;
(4) The Company's audit committee (5) The internal control over
and the discipline inspection information disclosure fails causing
department/audit and legal that the Company is publicly
department have no effective reprimanded by the regulatory
supervision over internal control. authorities;(6) The results of internal control
evaluation especially major defects
or significant defects have not been
rectified.
(1) Major defect: misstatement ≥ 5% (1) Major defect: misstatement ≥ 5%
of profit before tax of profit before tax
(2) Significant defect: 1% of profit (2) Significant defect: 1% of profit
Quantitative criteria before tax ≤ misstatement < 5% of before tax ≤ misstatement < 5% of
profit before tax profit before tax
(3) General defect: misstatement < (3) General defect: misstatement <
1% of profit before tax 1% of profit before tax
Number of major defects in
financial reports (nos.) 0
Number of major defects in
non-financial reports (nos.) 0
Number of significant defects
in the financial report (nos.) 0
Number of significant defects
in non-financial reports (nos.) 0
2. Internal control audit report
Paragraph of review opinions in the internal control audit report
54Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
In our opinion FIYTA maintained effective internal control over financial reporting in all material respects as at
December 31 2024 in accordance with the Basic Standards for Enterprise Internal Control and relevant
regulations.Disclosure of internal control audit report Disclosure
Disclosure date of full text of internal control audit
report March 14 2025
Disclosure index of full text of internal control audit
report www.cninfo.com.cn
Opinion type in the internal control audit report Standard unqualified opinion
Whether there are major defects in non-financial
reports No
Whether the accounting firm issues an audit report on internal control with non-standard opinions
No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report
of the Board of Directors
Yes
XV. Status of rectification of self-examination issues of special actions on
governance of listed companies
The Company has fully completed the self-inspection in accordance with the requirements of the
Announcement on Carrying out Special Actions for the Governance of Listed Companies issued by the CSRC and
rectified the problems found during the self-inspection. The corporate governance meets the requirements of the
Company Law the Securities Law the Code on Governance of Listed Companies and other laws and regulations
the governance structure is sophisticated and the operation is standardized.
55Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Section 5 Environmental and social responsibility
I. Major environmental protection issues
Whether the listed companies and their subsidiaries classified as key pollutant discharging units designated by the
Ministry of Environmental Protection
No
Administrative penalties for environmental issues during the reporting period
Not applicable
Refer to other environmental information disclosed by key pollutant discharging units
The Company abiding by the Law of the People's Republic of China on the Prevention and Control of
Atmospheric Pollution the Law of the People's Republic of China on Prevention of Environmental Pollution Caused
by Solid Waste the Law of the People's Republic of China on Prevention and Control of Water Pollution and other
laws and regulations has formulated the Control Procedure for Wastewater Exhaust Gas Dust and Noise the
Control Procedure for Waste Management the Control Procedure for Chemical Management and other system
documents to clearly specify the management measures for pollutants such as wastewater exhaust gas dust
waste and noise carried out the pollutant emission control in an standardized and systematic manner and
entrusted an external qualified agency to monitor pollutants every year so as to ensure that the emissions meet
the standards. For the specific information please refer to the 2024 Environmental Social and Governance (ESG)
Report disclosed by the company on www.cninfo.com.cn on March 14 2025.(IV) Measures taken to reduce its carbon emissions during the reporting period and their effects
The Company has actively responded to the call for "Carbon Peak and Neutrality" action and incorporated the
requirements into the key work. Shenzhen FIYTA STD Co. Ltd. a subsidiary has set up a greenhouse gas
management team to be responsible for the formulation and implementation of annual emission reduction targets.The team members will implement relevant measures within their respective powers and responsibilities to
promote the transformation of the Company to a green low-carbon and sustainable direction.Reasons for not disclosing other environmental information
Not applicable
II. Social responsibility
For the specific information please refer to the 2024 Environmental Social and Governance (ESG) Report
disclosed by the company on www.cninfo.com.cn on March 14 2025.III. Consolidate and expand the achievements of poverty alleviation and rural
revitalization
The Company has attached great importance to the children education and public welfare services and actively
promoted the development of children's literacy education together with Shanghai Adream Charitable Foundation
and has been committed to broadening the horizons brightening the future of more children and thus facilitating
the continuous progress of society. The "Dream Center" project has been commenced and operated in Guizhou
province Hainan province Jiangxi province Gansu and other provinces. With the "Dream Center" project better
56Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
hardware learning space is provided for students regular teacher training is carried out and a teacher development
system is established effectively promoting the overall improvement of education and teaching quality in counties
in economically backward areas. During the reporting period the Company donated RMB 200000 yuan to
Shanghai Adream Charitable Foundation to build a 6.0 plus 2 version of 200000 large-screen middle school dream
center in Siyuan Experimental School. As at the end of the reporting period the Company has donated a total of
RMB 4209800 yuan in cash and materials to Shanghai Adream Charitable Foundation and donated a total of 35
dream centers in 12 provinces benefiting a total of 44021 students.
57Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Section 6 Significant events
I. Fulfillment of commitments
1. The company's actual controller shareholders related parties acquirers and the
company itself committed to fulfilling all commitments to relevant parties during the
reporting period with any outstanding commitments not fulfilled as of the end of the
reporting period.Not applicable
2. If there is a profit forecast for Fiyta's assets or projects and the reporting period is still in
the profit forecast period Fiyta explains whether the assets or projects have met the original
profit forecast and the reasons
Not applicable
II. Non-operating occupation of funds by controlling shareholders and other
related parties of listed companies
Not applicable
III. External guarantee in violation of regulations
Not applicable
IV. Explanation of the Board of Directors on the latest "non-standard audit
report"
Not applicable
V. Explanation of the Board of Directors the Board of Supervisors and
independent directors (if any) on the "non-standard audit report" of the
accounting firm during the reporting period
Not applicable
VI. Changes in accounting policies and accounting estimates or corrections of
significant accounting errors compared with the financial report of the previous
year
Not applicable
58Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
VII. Description of changes in the scope of consolidated statements compared
with the financial report of the previous year
Not applicable
VIII. Appointment and dismissal of accounting firms
Accounting firm currently employed
Name of domestic accounting firm RSM China CPA LLP (Special General Partnership)
Remuneration of domestic accounting firm 144 (of which the annual report audit fee is 1.14 million yuan and
(RMB 10000) the internal control audit fee is 300000 yuan)
Consecutive years of audit services
provided by domestic accounting firms 1
Names of CPAs of the domestic accounting
firm Cai Ruxiao Zheng Chaomin Ge Hua
Consecutive years of audit services
provided by certified public accountants of 1
domestic accounting firms
Whether to change the accounting firm in the current period
Yes
Whether the accounting firm was changed during the audit period
No
Whether the accounting firm is replaced in accordance with the review and approval procedures
Yes
Detailed description of the change of accounting firm
Upon the deliberation and approval at the Annual General Meeting in 2023 the Company reappointed Dahua
Certified Public Accountants (Special General Partnership) as the financial statements and internal control auditor
for 2024. According to the Administrative Measures for the Appointment of Accounting Firms by State-owned
Enterprises and Listed Companies and other provisions and in combination with the needs of the audit work the
Company changed RSM China CPA LLP (Special General Partnership) as the financial statement and internal
control auditor for 2024 after the deliberation and approval at the third meeting of the 11th Board of Directors and
the second extraordinary general meeting in 2024. For details please refer to the Announcement on Resolutions of
the 18th Meeting of the 10th Board of Directors 2024-006 Announcement on Renewal of the Accounting Firm 2024
-011 Announcement on Resolutions of 2023 Annual General Meeting of Shareholders 2024-016 Announcement of
Resolutions of the 3rd Meeting of the 11th Board of Directors 2024 –040 Announcement on Proposed Change of
the Accounting Firm 2024-042 and Announcement on Resolution of the Second Extraordinary General Meeting in
2024 No. 2024-044 disclosed by the Company on November 9 and November 29 2024 on the CNINFO website.
Employment of accounting firm financial consultant or sponsor for internal control audit
The Company hired RSM China CPA LLP (Special General Partnership) as the internal control auditor in 2024
paying the internal control audit fee of RMB 300000 yuan.IX. Delisting after the disclosure of the annual report
Not applicable
59Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
X. Matters related to bankruptcy and reorganization
Not applicable
XI. Significant litigation and arbitration
Not applicable
XII. Penalties and rectification
Not applicable
XIII. Integrity status of the company and its controlling shareholders and actual
controllers
Not applicable
XIV. Major related-party transactions
1. Related party transactions related to daily operations
Not applicable
2. Related party transactions arising from the acquisition or sale of assets or equities
Not applicable
3. Related party transactions of joint external investment
Not applicable
4. Related claims and debts
Not applicable
5. Transactions with related financial companies
Deposit business
Amount in the current
period
Maximum
daily Deposit Beginning Total
Total Ending
Related Relationshi deposit balance deposits in withdrawalinterest balanceparty p limit amount in
(RMB1000 rate range
(RMB1000 the current (RMB1000
0) period the current 0)
0) (RMB1000 period
0) (RMB10000)
AVIC Controlled
Finance by the 100000
0.205%-
1.25%4677452638052329349861
60Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
same
ultimate
party
Loan business
Amount in the current
period
Beginning Total loan Total Ending
Related Relationshi Loan limit Loan repayment
party p (RMB1000 interest
balance amount in balance
(RMB1000 the current amount in0) rate range (RMB10000) period the current 0)
(RMB1000 period
0) (RMB10000)
Controlled Not higher
AVIC by the than 1Y
Finance same 80000 LPR 0 0 0 0ultimate interest
party rate
Credit granting or other financial business
During the reporting period the company's daily maximum associated balance of deposits and loans with
Aviation Industry Financial did not exceed the limits stipulated in the financial services agreement. Additionally no
credit or other financial transactions occurred. At the same time the company issued the Risk Assessment Report
on Related Deposits and Loans with AVIC Finance Co. Ltd. every six months in response to the above matters.
6. Transactions between financial companies controlled by the company and related parties
Not applicable
7. Other major related party transactions
The 18th meeting of the 10th Board of Directors and the 2023 Annual General Meeting of Shareholders
approved the proposal regarding anticipated routine related-party transactions for the year 2024. During the
reporting period the cumulative transaction amount of the company's related transactions relating to daily
operations was within the annual estimated range. For details please refer to the Announcement on Resolutions of
the 18th Meeting of the 10th Board of Directors 2024-006 Announcement on Prediction of Daily Related Party
Transactions 2024-009 and Announcement on Resolutions of 2023 Annual General Meeting of Shareholders 2024-
016 disclosed by the Company on March 14 and April 19 2024 on the CNINFO website.
During the 20th meeting of the 10th Board of Directors and the 1st Extraordinary General Meeting in 2024 the
Proposal to Sign A Financial Services Framework Agreement with AVIC Finance Co. Ltd. was deliberated and
adopted. It was decided to terminate the original contract and re-sign the Financial Services Framework Agreement
with AVIC Finance Co. Ltd. For details please refer to the Announcement on the 20th Meeting of the 10th Board
of Directors 2024-024 Announcement on Related Party Transactions on Signing a Financial Service Framework
Agreement with AVIC Finance Co. Ltd. 2024-029 and Announcement of the Resolution of the First Extraordinary
General Meeting in 2024 No. 2024-034 disclosed by the Company on August 21 and September 7 2024 on the
CNINFO website.Inquiry related to the disclosure website of interim report on major related transactions
Name of temporary announcement Disclosure date of Disclosure of website name in
61Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
provisional announcement temporary announcement
Announcement on Resolutions of the 18th Meeting
of the 10th Board of Directors 2024-006 Mar. 14 2024
Announcement on Prediction of Daily Related Party
Transactions 2024-009 Mar. 14 2024
Announcement on Resolutions of 2023 Annual
General Meeting of Shareholders 2024-016 April 18 2024
Announcement on the 20th Meeting of the 10th
Board of Directors 2024-024 August 21 2024 http://www.cninfo.com.cn/
Announcement on Related Party Transactions on
Signing a Financial Service Framework Agreement August 21 2024
with AVIC Finance Co. Ltd. 2024-029
Announcement of the Resolution of the First
Extraordinary General Meeting in 2024 No. 2024- September 7 2024
034
XV. Major contracts and performance thereof
1. Trusteeship contracting and leasing matters
(1) Trusteeship
Not applicable
(2) Contracting
Not applicable
(3) Leasing
Not applicable
2. Major guarantee
Unit: RMB'0000
External guarantees provided by the company and its subsidiaries (excluding guarantees provided to
subsidiaries)
Announ
cement Whethe
Name disclos Counte r the Whethe
of ure Actual Type of Collater r- Guaran perform r to
guarant date Guaran Actual guarant ance guarant
ee related tee limit date eed
guarant al (if guarant tee
ee any) ee (if period has ee for a
object to amount any) been related
guarant complet party
ee limit ed
Not applicable
Total amount of Total actual
external amount of
guarantee 0 external 0
approved during guarantee during
the reporting the reporting
62Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
period (A1) period (A2)
Total amount of Total actual
external external
guarantee guarantee
approved at the 0 balance at the 0
end of the end of the
reporting period reporting period
(A3) (A4)
Guarantees of COOEC for subsidiaries
Announ
cement Whethe
Name disclos Actual Counte
r the Whethe
of ure Guaran Actual guarant Type of Collater r- Guaran
perform r to
guarant date tee limit date eed guarant al (if guarant tee
ance guarant
ee related amount ee any) ee (if period
has ee for a
object to any) been related
guarant complet party
ee limit ed
Shenzh
en
Shenzh
en Joint
Harmo Mar. Decem and
ny 14 30000 ber 30 10000 several 1 year No No
World 2024 2024 liability
Watch guarant
Centre ee
Co.Ltd.Total amount of Total actual
guarantees amount of
approved for guarantees
subsidiaries 60000 provided to
during the subsidiaries
10000
reporting period during the
(B1) reporting period(B2)
Total approved Total actual
guarantee limit for guarantee
subsidiaries at the balance for
end of the 60000 subsidiaries at the 10000
reporting period end of the
(B3) reporting period(B4)
Guarantees provided by subsidiaries to subsidiaries
Announ
cement Whethe
Name disclos Counte r the Whethe
of ure Actual perform r to
guarant date Guaran Actual guarant
Type of Collater r- Guaran
tee limit date eed guarant al (if guarant tee
ance guarant
ee related amount ee any) ee (if period
has ee for a
object to any) been related
guarant complet party
ee limit ed
Not applicable
63Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Total amount of Total actual
guarantees amount of
approved for guarantees
subsidiaries 0 provided to
during the subsidiaries
0
reporting period during the
(C1) reporting period(C2)
Total approved Total actual
guarantee limit for guarantee
subsidiaries at the balance for
end of the 0 subsidiaries at the 0
reporting period end of the
(C3) reporting period(C4)
Total amount of corporate guarantees (i.e. the total of the top three items)
Total amount of Total actual
guarantee amount of
approved during 60000 guarantee duringthe reporting the reporting 10000
period period
(A1+B1+C1) (A2+B2+C2)
Total approved Total actual
guarantee limit at guarantee
the end of the 60000 balance at the
reporting period end of the
10000
(A3+B3+C3) reporting period(A4+B4+C4)
The proportion of actual total amount
of guarantee (i.e. A4+B4+C4) in the 2.95%
company's net assets
Including:
Balance of guarantees provided to
shareholders actual controllers and 0
their related parties (D)
Balance of debt guarantee directly or
indirectly provided to the guaranteed
object with the asset/liability ratio 0
exceeding 70% (E)
Total amount of guarantee exceeding
50% of net assets (F) 0
Total amount of the above three
guarantees (D+E+F) 0
For the unexpired guarantee contract
the guarantee liability occurred or
there is evidence showing that it is
possible to assume joint and several Not applicable
liability during the reporting period (if
any)
Description of external guarantee
provided in violation of prescribed Not applicable
procedures (if any)
Specific description of the composite guarantee
64Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Not applicable
3. Entrustment of others for cash asset management
(1) Entrusted wealth management
Not applicable
(2) Entrusted loans
Not applicable
4. Other major contracts
Not applicable
XVI. Explanation of other significant matters
(I) Repurchase of a portion of domestic listed foreign shares (B-shares)
The Company's 11th meeting of the 10th Board of Directors and the 2022 Annual General Meeting of
Shareholders approved the Plan for the Repurchase of a Portion of Domestic Listed Foreign Shares (B-shares)
and subsequently disclosed the repurchase report and a series of progress announcements in accordance with
relevant regulations. As of April 25 2024 the implementation of the repurchase plan has been completed and the
repurchased 9355763 B-shares have been canceled on May 10 2024. For detailed information please refer to
the company's announcements "Announcement on the Expiration and Implementation Results of the Repurchase
of Certain Domestically Listed Foreign Shares (B Shares) 2024-020" and "Announcement on the Completion of the
Cancellation of Repurchased Domestically Listed Foreign Shares (B Shares) and Share Changes 2024-021"
disclosed on CNINFO on April 26 2024 and May 14 2024 respectively.(II) General election of the Board of Directors and the Board of Supervisors and appointment of senior
officers
Upon the deliberation and approval at the 20th meeting of the 10th Board of Directors the 18th meeting of the
10th Board of Supervisors and the 2nd Extraordinary General Meeting in 2024 the Company elected the directors
of the 11th Board of Directors and the shareholder representative supervisors of the 11 th Board of Supervisors;
Upon the deliberation and approval at the 5th Congress of Workers and Staff of the 5th Session the Company
elected the employee representative supervisor of the 11th Board of Supervisors. For details please refer to the
Announcement on the General Election of the Board of Directors 2024-027 the Announcement on the General
Election of the Board of Supervisors 2024-028 and the Announcement on the General Election of Employee
Representative Supervisors 2024-033 disclosed by the Company on August 21 and August 27 2024 on the
CNINFO website.Upon the deliberation and approval at the first meeting of the 11th Board of Directors and the first meeting of
the 11 th Board of Supervisors the Company completed the election of the chairman of the Board of Directors the
appointment of senior officers and the election of chairman of the Board of Supervisors. For details please refer to
the Announcement on the Completion of General Election of the Board of Directors and the Board of Supervisors
and the Appointment of Senior Officers disclosed by the Company on September 7 2024 on the CNINFO website.(III) Adjustment of the Strategy Committee of the Board of Directors and revision of relevant systems
65Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
In order to meet the needs of the strategic development improve the Company's ESG management level and
improve the ESG management system the Board of Directors agreed to adjust the "Strategy Committee" to the
"Strategy and ESG Committee" upon the deliberation and approval at the fourth meeting of the 11th Board of
Directors and added ESG management-related responsibilities on the basis of the original duties of the Strategy
Committee. Meanwhile the relevant provisions of the Detailed Rules for the Implementation of Special Committees
of the Board of Directors were revised and the ESG Management System was formulated. For details please refer
to the Announcement on Adjusting the Strategy Committee of the Board of Directors to the Strategy and ESG
Committee of the Board of Directors and the full text of relevant systems disclosed by the Company on January 2
2025 on the CNINFO website.
XVII. Major events of the company's subsidiaries
Not applicable
66Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Section 7 Changes in shares and shareholders
I. Changes in shares
1. Changes in shares
Unit: shares
Before this change Increase/decrease in this change (+ -) After this change
Capita
Sha l
re conve
Number Ratio IPO don rsionof Others Sub-total Number Ratioatio
n provident
funds
I.Restricte 2729860 0.66% 0 0 0 -254140 -254140 2475720 0.61%
d shares
1.
State-
owned 0 0.00% 0 0 0 0 0 0 0.00%
shares
2.
State-
owned
legal 0 0.00% 0 0 0 0 0 0 0.00%
person
sharehol
ding
3.
Other
domestic 2729860 0.66% 0 0 0 -254140 -254140 2475720 0.61%
sharehol
ding
Inclu
ding:
domestic
legal 0 0.00% 0 0 0 0 0 0 0.00%
person
sharehol
ding
Dom
estic
natural
person 2729860 0.66% 0 0 0 -254140 -254140 2475720 0.61%
sharehol
ding
4.
Foreign 0 0.00% 0 0 0 0 0 0 0.00%
sharehol
67Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
ding
Inclu
ding:
overseas
legal 0 0.00% 0 0 0 0 0 0 0.00%
person
sharehol
ding
Over
seas
natural
persons 0 0.00% 0 0 0 0 0 0 0.00%
sharehol
ding
II. Non-
restricted 412490110 99.34% 0 0 0 -9201823 -9201823 403288287 99.39%
shares
1. RMB
ordinary 362553413 87.31% 0 0 0 153940 153940 362707353 89.39%
shares
2.
Domestic
listed 49936697 12.03% 0 0 0 -9355763 -9355763 40580934 10.00%
foreign
shares
3.
Overseas
listed 0 0.00% 0 0 0 0 0 0 0.00%
foreign
shares
4.
Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total
number 415219970 100.00% 0 0 0 -9455963 -9455963 405764007 100.00%of shares
Reasons for change in shares
1. During the reporting period due to the adjustment of the transferable quota for senior management
153940 shares with sales restrictions were reduced (corresponding to an increase in unrestricted shares with the
total capital stock remaining unchanged).
2. During the reporting period due to the resignation of 3 former incentive recipient and the death of 1 former
incentive recipient in the Phase-II restricted stock incentive plan the Company repurchased and canceled the
100200 A-share restricted stocks held by them in total according to regulations and reduced the restricted stocks
by 100200 shares in total (total share capital decreased);
3. During the reporting period as the company completed the implementation of the repurchase plan for
certain domestically listed foreign shares (B shares) the repurchased B shares were canceled reducing 9355763
unrestricted shares (total capital stock decreased).In view of the above reasons at the end of the reporting period the total share capital of the company
decreased by 9455963 shares and the total share capital decreased from 415219970 shares to 405764007
shares.
68Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Approval of change in shares
Upon the authorization and approval of the company's 2022 annual general meeting of shareholders the
company canceled the repurchased 9355763 B shares.Upon the approval at the annual general meeting in 2023 and the first extraordinary general meeting in 2024
the Company repurchased and canceled a total of 100200 A-share restricted stocks.Transfer of change in shares
During the reporting period as reviewed and confirmed by China Securities Depository and Clearing Corporation
Limited (CSDC) Shenzhen Branch the changes in shares were as follows:
On May 10 2024 9355763 B shares were canceled;
On July 1 2024 the 10020 A-share restricted stocks were repurchased and canceled;
On October 31 2024 90180 A-share restricted stocks were repurchased and canceled.The impact of the share changes on financial indicators such as basic earnings per share and diluted earnings per
share for the most recent year and period as well as net assets per share attributable to the company's ordinary
shareholders is as follows:
20242023
Financial indicators Before the change After the change Before the change in After the change of
in shares of shares shares shares
Basic earnings per share 0.5314 0.5385 0.8082 0.8272(yuan/share)
Diluted earnings per share 0.5378 0.8075 0.8265
(yuan/share) 0.5307
Net asset value per share
(RMB/share) attributable 8.17 8.36 8.03 8.22to ordinary shareholders
of the company.
4. Other content that COOEC deems necessary or required to be disclosed by securities regulators
Not applicable
2. Changes in restricted shares
Unit: shares
Number of Number of
Number of restricted restricted Number
Sharehol restricted shares shares of Date of
der's shares at the increased in released in restricted Reason for restricted restricted
name beginning of the current the current shares at sales sales
the period period (Note period (Note the end of released
1) 2) the period
Executive locked-in Unlock in
Li Ming 160080 0 40013 120067 shares and unlocked accordance
restricted shares with the
69Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
relevant laws
and
regulations
on locking
shares by
senior
executives.Executive locked-in
Pan Bo 160050 12487 0 172537 shares and unlocked -
restricted shares
Unlock in
accordance
with the
Executive locked-in relevant lawsLu
Wanjun 160050
0 40013 120037 shares and unlocked and
restricted shares regulationson locking
shares by
senior
executives.Unlock in
accordance
with the
Liu Executive locked-in relevant laws
Xiaomin 160050 0 40013 120037 shares and unlocked and
g restricted shares regulationson locking
shares by
senior
executives.Unlock in
accordance
with the
Executive locked-in relevant lawsTang 0 26888 and
Haiyuan 107550 80662 shares and unlockedrestricted shares regulationson locking
shares by
senior
executives.Chen 60120 -60120 0 0 Unlocked restrictedLibin shares -
Bao
Xianyon 40080 0 0 40080 Unlocked restricted
g shares
-
Sun Lei 40080 0 0 40080 Unlocked restrictedshares -
Sheng Li 40080 0 0 40080 Unlocked restrictedshares -
Unlock in
Locked shares and accordance
Other unlocked restricted with the
sharehol 1801720 -40080 19500 1742140 shares of supervisors relevant laws
ders and outgoing and
executives regulationson locking
shares by
70Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
senior
executives.Total 2729860 -87713 166427 2475720 -- --
Note: 1. Reasons for changes in the number of restricted shares increased in the current period:
(1) At the beginning of the period the transferable quota for senior management was adjusted and the
restricted shares held by senior management (Mr. Pan Bo) increased by 12487 shares;
(2) The 100200 restricted shares that have been repurchased and canceled during the reporting period are
deducted from this item including 60120 shares held by Mr. Chen Libin the former incentive recipient and
40080 shares held by other 3 former incentive recipients in total.
2. Reason for changes in the number of unrestricted shares in the current period: adjustment of transferable
quotas for senior management at the beginning of the period.II. Issuance and listing of securities
1. Securities issuance (excluding preferred shares) during the reporting period
Not applicable
2. Description of changes in the total number of shares and shareholder structure of the
Company and changes in the structure of assets and liabilities of the Company
The same as that described in the "Reasons for changes in shares".
3. Existing internal employee shares
Not applicable
III. Shareholders and actual controllers
1. Number of shareholders and their shareholding situation in the company
Unit: shares
Total
number
of
ordinary
Total sharehol Total number of Total number of preferred
number of ders at preferred shareholders whose voting
ordinary the end shareholdersof the whose voting rights have been restored atshareholde
rs as at the 26316 latest 25508 rights have been 0
the end of the previous
month prior to the disclosure 0
end of the month restored at the date of the annual report (if
reporting before end of thethe date reporting period any)period of (if any)
disclosur
e of the
annual
report
Shareholders holding more than 5% stock or the top 10 stock shareholders' shareholding details (excluding
shares lent through refinancing)
Shareholde Nature Shareh Number of Increase/d Number Number of Pledged tagged
71Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
r's name olding shares held ecrease of non- or frozen
Ratio at the end of during the restrictive restrictive
the reporting reporting stocks stocks held Status Num
period period held ber
AVIC State-
Internation owned 40.17 Not
al Holding legal % 162977327 0 0 162977327 applicabl 0
Limited person e
Domestic Not
# Wu Jilin natural 4.43% 17972441 -71186 0 17972441 applicabl 0
person e
Xu Domestic Not
Guoliang natural 1.39% 5659968 -1582800 0 5659968 applicabl 0person e
Domestic Not
Qiu Hong natural 0.62% 2510000 40000 0 2510000 applicabl 0
person e
Domestic Not
#Zhu Rui natural 0.53% 2149400 742300 0 2149400 applicabl 0
person e
604
Portfolio of
National Not
Social Others 0.41% 1676300 1178800 0 1676300 applicabl 0
Security e
Fund
SWS MU
Fund -
China
Everbright
Bank -
SWS MU Not
Changhon Others 0.41% 1658000 1658000 0 1658000 applicabl 0
g No. 1 e
Collective
Asset
Manageme
nt Plan
Industrial
and
Commercia
l Bank of
China
Limited -
GF ZZGX
Central
Governme Not
nt-owned Others 0.36% 1457500 244800 0 1457500 applicabl 0
Enterprise e
Shareholde
r Return
Trading
Open-
Ended
Index
Securities
Investment
72Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Fund
#Wang Domestic Not
Xing natural 0.34% 1387800 566400 0 1387800 applicabl 0person e
#Qu Domestic Not
Yongjie natural 0.31% 1271900 -14900 0 1271900 applicabl 0person e
Strategic investors or
legal persons becoming
the top ten shareholders Not applicable
due to placement of new
shares (if any)
Notes to shareholders'
related relationship or The Company does not know whether the above 10 shareholders are related or act
persons acting in concert in concert.Description of the above The shareholder AVIC International Holdings Limited authorized a representative
shareholders' to exercise voting rights on behalf of the Company at the 2023 annual general
involvement in the meeting of shareholders the 1st extraordinary general meeting in 2024 and the 2nd
commissioned/entrusted extraordinary general meeting in 2024 representing 162977327 shares. For details
voting rights and waiver of the voting results please refer to the relevant announcements issued by the
of voting rights Company on the CNINFO website.Special instructions on
the existence of special
repurchase accounts Not applicable
among the top 10
shareholders (if any)
Shareholding of the top 10 non-restrictive shareholders (excluding shares lent through refinancing and shares
locked by senior management)
Class of shares
Shareholder's name Number of non-restricted stock held atthe end of the reporting period Class of
shares Number
AVIC International Holding Limited 162977327 RMB commonshare 162977327
# Wu Jilin 17972441 RMB commonshare 17972441
Xu Guoliang 5659968 RMB commonshare 5659968
Qiu Hong 2510000 RMB commonshare 2510000
#Zhu Rui 2149400 RMB commonshare 2149400
604 Portfolio of National Social RMB common
Security Fund 1676300 share 1676300
SWS MU Fund - China Everbright
Bank - SWS MU Changhong No. 1 1658000 RMB common 1658000
Collective Asset Management Plan share
Industrial and Commercial Bank of
China Limited - GF ZZGX Central
Government-owned Enterprise RMB common
Shareholder Return Trading Open- 1457500 share 1457500
Ended Index Securities Investment
Fund
#Wang Xing 1387800 RMB commonshare 1387800
#Qu Yongjie 1271900 RMB common 1271900
73Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
share
Explanation of the
relationship or concerted
actions between the top
10 holders of
unrestricted circulation The Company does not know whether the above 10 shareholders are related or act
stock and that between in concert.the top 10 holders of
unrestricted circulation
stock and the top 10
shareholders.
1. In addition to holding 8288277 shares through the ordinary securities account
Wu Jilin the shareholder of the company also holds 9684164 shares through the
client credit trading guarantee securities account of CICC Wealth Management
holding 17972441 shares in total;
2. In addition to holding 172600 shares through the ordinary securities account Zhu
Explanation of the top 10 Rui the shareholder of the company also holds 1976800 shares in the client credit
common stock trading guarantee securities account of First Capital Securities Co. Ltd. holding a
shareholders' total of 2149400 shares;
participation in securities 3. In addition to holding 932500 shares through the ordinary securities account
margin trading (if any) Wang Xing the shareholder of the company also holds 455300 shares through thecustomer credit trading guarantee securities account of China Merchants Securities
co. Ltd. (CMS) holding a total of 1387800 share;
4. In addition to holding 44500 shares through the ordinary securities account Qu
Yongjie a shareholder of the Company also held 1227400 shares through the
guaranteed securities account for customer credit trading guarantee securities
account of Shanxi Securities Co. Ltd. holding a total of 1271900 shares;
Participation of shareholders holding more than 5% of the shares top ten shareholders and top ten shareholders
with unlimited tradable shares in the lending of shares through the refinancing business
Not applicable
The top ten shareholders and the top ten shareholders with unlimited tradable shares have changed compared to
the previous period due to the reasons of refinancing lending and repayment
Not applicable
Did the company's top 10 common stock shareholders and top 10 holders of unrestricted common stock engage in
any agreed repurchase transactions during the reporting period
No
2. Controlling shareholders
Nature of controlling shareholder: central state-owned holding
Type of controlling shareholder: legal person
Legal
Name of controlling representative Date of Main operating
shareholder /organization establishment Organization code business
principal
Investment and
industry (declared
separately for specific
AVIC International Li Bin June 20 1997 91440300279351229 items); DomesticHolding Limited A commercial and
material supply and
marketing industry
(excluding franchise
74Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
commodity under
special government
control and
monopolized
commodities);
Operation of import
and export business
(except for items
prohibited by laws
administrative
regulations and
decisions of the State
Council and restricted
items shall not be
operated without
permission).Equity status of other
domestic and foreign
listed companies that
the controlling AVIC International Holding Limited holds an 11.86% stake in Tianma Microelectronics
shareholder controls Co. Ltd. (Shenzhen Tianma 000050) and a 63.97% stake in Shennan Circuits Co.and participates in Ltd. (Shennan Circuits 002916).during the reporting
period
Changes in controlling shareholders during the reporting period
Not applicable
3. Actual controller of the Company and its persons acting in concert
Nature of actual controller: central state-owned assets management agency
Type of actual controller: legal person
Legal
Name of actual representati Date of
controller ve/organizati establishment Organization code Main operating business
on principal
Operating state-owned assets
within the scope authorized by
the State Council; Research
design development testing
production sales maintenance
support and service of military
aircraft and engines guided
weapons military gas turbines
Aviation weapon equipment supporting
Industry 9111000071093573 systems and products;
Corporation of Zhou Xinmin November 6 2008 2K Investment and management in
China LTD. finance leasing general aviation
services transportation medical
treatment engineering survey
and design engineering
contracting and construction
real estate development and
other industries; Design
research development testing
production sales and
75Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
maintenance services of civil
aircraft and engines airborne
equipment and systems gas
turbines automobiles and
motorcycles and engines
(including parts) refrigeration
equipment electronic products
environmental protection
equipment and new energy
equipment; equipment leasing;
engineering survey and design;
project contracting and
construction; real estate
development and operation;
technology transfer and
technical services related to the
above business; import and
export business; technical
development and sales of ships;
technical development of
engineering equipment; technical
development of new energy
products (The enterprise may
choose and conduct business
independently in accordance
with the law; the market entity
may engage in such business
only after being approved by
relevant authorities. The market
entity must not engage in
business activities of items
prohibited or restricted by this
Municipality's industrial policies.)
In addition to the equity of the Company AVIC directly or indirectly holds and controls the
following shares of domestic and overseas listed companies:
1. Tianma Microelectronics Co. Ltd. (000050) with a shareholding ratio of 28%;
2. AVIC Xi'an Aircraft Industry Group Company Ltd. (000768.SZ) with a shareholding ratio of
55%;
3. AVIC Jonhon Optronic Technology Co. Ltd. (002179.SZ) with a shareholding ratio of
38%;
4. Sichuan Chengfei Integration Technology Corp. Ltd. (002190.SZ) with a shareholding ratio
Equity of other of 51%;
domestic and 5. Rainbow Digital Commercial Co. Ltd. (002419.SZ) with a shareholding ratio of 45%;
overseas listed 6. AVIC Chengdu Aircraft Company Limited (302132.SZ) with a shareholding ratio of 89%;
companies 7. AVICOPTER PLC (600038.SH) with a shareholding ratio of 54%;
controlled by 8. Jiangxi Hongdu Aviation Industry Co. Ltd. (600316.SH) with a shareholding ratio of 48%;
the actual 9. AVIC Airborne Systems Co. Ltd. (600372.SH) with a shareholding ratio of 55%;
controller during 10. Guizhou Guihang Automotive Components Co. Ltd. (600523.SH) with a shareholding
the reporting ratio of 46%;
period 11. AVIC Industry-Finance Holdings Co. Ltd. (600705.SH) with a shareholding ratio of 48%;
12. AVIC Shenyang Aircraft Company Limited (600760.SH) with a shareholding ratio of 68%;
13. AVIC Heavy Machinery Co. Ltd. (600765.SH) with a shareholding ratio of 37%;
14. Baosheng Science And Technology Innovation Co. Ltd. (600973.SH) with a
shareholding ratio of 40%;
15. AVIC Aviation High-Technology Co. Ltd. (600862.SH) with a shareholding ratio of 45%;
16. Shennan Circuits Co. Ltd. (002916.SZ) with a shareholding ratio of 64%;
17. Hefei Jianghang Aircraft Equipment Co. Ltd. (688586.SH) with a shareholding ratio of
56%;
76Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
18. AVIC (Chengdu) UAS Co. Ltd. (688297.SH) with a shareholding ratio of 52%;
19. AVIC FORSTAR S&T Co. Ltd. (835640.BJ) with a shareholding ratio of 47%;
20. Nexteer Automotive Group Ltd. (01316.HK) with a shareholding ratio of 44%;
21. AviChina Industry & Technology Company Limited (02357.HK) with a shareholding ratio
of 60%;
22. Continental Aerospace Technologies Holding Limited (00232.HK) with a shareholding
ratio of 46%;
23. KHD Humboldt Wedag International AG (KWG:GR) with a shareholding ratio of 89%;
24. FACCAG (AT00000FACC) with a shareholding ratio of 55%.
Change of actual controller during the reporting period
Not applicable
Chart for the property and controlling relationships between COOEC and the actual controllers
State-owned Assets Supervision and Administration
Commission of the State Council
Aviation Industry Corporation of China LTD.AVIC International Holding Corporation AVIC INNO Co. Ltd.AVIC International Holding Limited
FIYTA Precision Technology Co. Ltd.The actual controller controls COOEC by way of trust or other asset management methods
Not applicable
4. The cumulative number of shares pledged by the controlling shareholder or the largest
shareholder of the Company and persons acting in concert therewith accounted for 80% of
the number of shares held by the Company
Not applicable
5. Other corporate shareholders holding more than 10% shares
Not applicable
6. Restrictions on shareholding reduction by controlling shareholders actual controllers
restructuring parties and other commitment entities
Not applicable
IV. Specific implementation of share re-purchase in the reporting period
Implementation progress of share repurchase
77Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Proportion
of
repurchase
Number of Amount to d shares in
Plan shares to Proportion be Proposed Quantity the
disclosure be in totalshare repurchase repurchasin
Repurchasi repurchase underlying
time repurchase capital d (RMB g period
ng purpose d (shares) shares
d (shares) 10000) involved inthe equity
incentive
plan (if
any)
No less Cancellatio
6.66 million than RMB n and
shares to 50 million April 27 reductionMar. 18 1.59% to and no 2023 to of
2023 13.32million 3.19% greater April 26 registered
9355763
shares than 2024 capitalRMB 100 according
million to the law
The implementation progress of the reduction of repurchased shares through centralized bidding
Not applicable
78Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Section 8 Relevant information about preferred stock
Not applicable
Section 9 Bond-related information
Not applicable
79Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Section 10 Financial Reporting
Auditor’s Report
FIYTA Precision Technology Co. Ltd.RSMSZ[2025]No.350Z0001
RSM CHINA CPA LLP
CHINA·BEIJING
If there is any conflict of meaning between the Chinese and English versions the Chinese version will
prevail
80Contents
Page
1 Auditor’s report 1-8
2 Consolidated Statement of Financial Position 1
Consolidated Statement of Profit or Loss and Other Comprehensive
32
Income
4 Consolidated Statement of Cash Flows 3
5 Consolidated Statement of Changes in Owners' Equity 4
6 Statement of Financial Position of Parent Company 5
Statement of Profit or Loss and Other Comprehensive Income of Parent
76
Company
8 Statement of Cash Flows of Parent Company 7
9 Statement of Changes in Owners' Equity of Parent Company 8
10 Notes to the Financial Statements 9-104
81(English Translation for Reference Only)
Auditor’s Report
RSMSZ[2025]No.350Z0001
To the Shareholders of FIYTA Precision Technology Co. Ltd.，Opinion
We have audited the financial statements of FIYTA Precision Technology Co. Ltd.(hereafter referred to as “the Company”) which comprises the consolidated and the
parent company’s statement of financial position as at 31 December 2024 the
consolidated and the parent company’s statement of profit or loss and other
comprehensive income the consolidated and the parent company’s statement of cash
flows the consolidated and the parent company’s statement of changes in equity for the
year then ended and the notes to the financial statements.In our opinion the accompanying the Company’s financial statements present fairly in
all material respects the consolidated and the company’s financial position as at 31
December 2024 and of their financial performance and cash flows for the year then
ended in accordance with Accounting Standards for Business Enterprises.Basis for Opinion
We conducted our audit in accordance with Chinese Standards on Auditing (CSAs). Our
responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the Code of Ethics for Professional
Accountants of the Chinese Institute of Certified Public Accountants and we have
fulfilled our other ethical responsibilities. We believe that the audit evidence we
obtained is sufficient and appropriate to provide a basis for our opinion.Key Audit Matters
1Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Key audit matters are those matters that in our professional judgment were of the most
significance in our audit of the financial statements of the current period. These matters
were addressed in the context of our audit of the financial statements as a whole and in
forming our opinion thereon and we do not provide a separate opinion on these matters.(I) Existence and Net Realizable Value of Inventory
1. Descriptions of the matter
For the details please refer to Note 3.13 and Note 5.6 of the financial statements.As stated in Note 5.6 as of 31 December 2024 the carrying amount of the Company's
inventory was RMB 2057.8734 million with an inventory write-down provision of
RMB 73.3864 million resulting in a net inventory value of RMB 1984.487 million
accounting for 49.52% of total assets. The Company's main business involves selling
FIYTA brand watches and other agency-branded watches with year-end inventory
primarily consisting of finished watches and watch components. Given the small size
and high unit value of branded watches and the widely dispersed inventory across
central warehouses regional warehouses and retail stores there is a heightened risk
related to inventory existence and impairment.As of the balance sheet date the Company's management is required to determine the
net realizable value (NRV) of inventory and any excess of cost over NRV should be
written down accordingly. The determination of NRV involves significant management
estimates regarding selling prices costs to completion selling expenses and relevant
taxes. Due to the materiality of the inventory balance and the significant accounting
estimates and judgments involved in the impairment provision we have identified the
existence of inventory and the determination of its NRV as a key audit matter.
2. How the matter was addressed in our audit
The audit procedures we performed in relation to existence and net realizable value of
inventory:
(1) Understanding evaluating and testing the design and operating effectiveness of
2Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
internal controls related to procurement and payment production and warehousing and
inventory write-down provisions;
(2) Utilizing expert work to conduct IT audits on the information system to evaluate the
authenticity and accuracy of business data related to financial reporting;
(3) Performing inventory counts at selected warehouses and retail stores to verify the
existence and condition of year-end inventory;
(4) Selecting samples of significant purchases during the reporting period and tracing
them to purchase contracts invoices purchase requisitions and warehouse receipts;
(5) Sending confirmation requests to selected suppliers to verify transaction amounts
and balances to confirm procurement details;
(6) Reviewing the Company’s inventory impairment policy and methodology to assess
its reasonableness obtaining management’s inventory impairment calculation and
evaluating key assumptions such as estimated selling prices costs to completion selling
expenses and related taxes along with performing recalculations;
(7) Obtaining the year-end aging report for inventory conducting analytical reviews
based on product conditions and assessing whether the inventory write-down provision
is reasonable.(II) Revenue Recognition
1. Descriptions of the matter
For the details please refer to Note 3.27 and Note 5.34 of the financial statements.As stated in Note 5.34 to the financial statements the main operating revenue of the
Company for the current year was RMB 3928.8451 million representing a 13.72%
decrease compared to the previous year. The Company's main operating revenue is
primarily derived from the sales of self-owned and agency-brand watches.Since revenue is one of the Company's key performance indicators there is an inherent
risk that revenue may be recognized in the incorrect period or manipulated to meet
3Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
specific targets or expectations. Therefore we have identified the revenue recognition of
the Company as a key audit matter.
2. How the matter was addressed in our audit
The audit procedures we performed in relation to revenue recognition:
(1) Understanding evaluating and testing the design and operating effectiveness of
internal controls related to revenue recognition;
(2) Utilizing expert work to conduct IT audits on the information system evaluating the
authenticity and accuracy of business data related to financial reporting;
(3) Obtaining and reviewing accounting policies related to revenue recognition and
assessing whether the timing of control transfer transaction price measurement and
special transaction accounting treatment comply with the requirements of accounting
standards;
(4) Selecting samples to examine supporting documents related to revenue recognition
including sales contracts sales invoices mall reconciliation statements customer
receipt records and logistics documents;
(5) Performing audit procedures on accounts receivable by selecting samples for
confirmation of transaction amounts and balances with customers as well as verifying
subsequent collections;
(6) Selecting samples of sales revenue recognized before and after the balance sheet
date to review sales contracts sales invoices mall reconciliation statements customer
receipt records and logistics documents to evaluate whether revenue is recognized in
the appropriate accounting period.Other information
Management of the Company is responsible for the other information. The other
information comprises the information included in the Annual Report of the Company
for the year of 2024 but does not include the financial statements and our auditor’s
report thereon.
4Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the
other information and in doing so consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material
misstatement of this other information we are required to report that fact. We have
nothing to report in this regard.Responsibilities of Management and Those Charged with Governance for the
Financial Statements
Management of the Company is responsible for the preparation and fair presentation of
the financial statements in accordance with Accounting Standards of Business
Enterprises and for the design implementation and maintenance of such internal
control as management determines is necessary to enable the preparation of financial
statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements management is responsible for assessing the
Company’s ability to continue as a going concern disclosing as applicable matters
related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations or have no
realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial
reporting process.Auditor’s Responsibilities for the Audit of the Financial Statements
Our Objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement whether due to fraud or error
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
5Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
high level of assurance but is not a guarantee that an audit conducted in accordance
with CSAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if individually or in the aggregate
they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.As part of an audit in accordance with CSAs we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
i) Identify and assess the risks of material misstatement of the financial statements
whether due to fraud or error design and perform audit procedures responsive to
those risks and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error as fraud may involve
collusion forgery intentional omissions misrepresentations or the override of
internal control.ii) Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances.iii) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.iv) Conclude on the appropriateness of management’s use of the going concern basis of
accounting and based on the audit evidence obtained whether a material
uncertainty exists related to events or conditions that may cast significant doubt on
the Company’s ability to continue as a going concern. If we conclude that a
material uncertainty exists we are required to draw attention in our auditor’s report
to the related disclosures in the financial statements or if such disclosures are
inadequate to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However future events or conditions
may cause the Company to cease to continue as a going concern.
6Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
v) Evaluate the overall presentation structure and content of the financial statements
and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.vi) Obtain sufficient appropriate audit evidence regarding the financial information of
the entities or business activities within the Company to express an opinion on the
financial statements. We are responsible for the direction supervision and
performance of the group audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding among other matters
the planned scope and timing of the audit and significant audit findings including any
significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence and to communicate with
them all relationships and other matters that may reasonably be thought to bear on our
independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine
those matters that were of most significance in the audit of the financial statements of
the current period and are therefore the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes public disclosure about the
matter or when in extremely rare circumstances we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
7Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
(This is seal page for Auditor’s Report of RSMSZ[2025]No.350Z0001 for FIYTA Precision
Technology Co. Ltd. without text.)
RSM China CPA LLP
Cai Ruxiao
China Certified Public Accountant
(Engagement Partner)
China·Beijing
Zheng Chaomin
China Certified Public Accountant
Ge Hua
China Certified Public Accountant
12 March 2025
8Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Consolidated Statement of Financial Position
31 December 2024
Prepared by: FIYTA Precision Technology Co. Ltd. Unit：Yuan Currency: RMB
Item Note 2024-12-31 2023-12-31 Item Note 2024-12-31 2023-12-31
Current assets: Current liabilities:
Monetary funds 5.1 518954177.49 504629153.71 Short-term borrowings 5.16 124087754.51 250187763.87
Financial assets held-for-trading Financial liabilities held-for-trading
Derivative financial assets Derivative financial liabilities
Notes receivable 5.2 29611600.60 18268972.37 Notes payable
Accounts receivable 5.3 260152834.43 323142761.64 Accounts payable 5.17 115532921.57 173825907.71
Accounts receivable financing Receipts in advance 5.18 11783796.49 10267758.31
Advances to suppliers 5.4 3858053.60 6571239.98 Contract liabilities 5.19 12605722.95 12286243.62
Premium receivable Employee benefits payable 5.20 92260153.14 120084810.60
Other receivables 5.5 56982351.27 57725792.00 Taxes payable 5.21 49815151.35 64188161.31
Including: Interests receivable Other payables 5.22 104638483.81 121937801.07
Dividend receivable Including: Interests payables
Inventories 5.6 1984486969.74 2100666175.28 Dividend payables 5.22 2785293.14 2058352.24
Contract assets Liabilities classified as held for sale
Assets classified as held for sale Non-current liabilities maturing within one year 5.23 63538231.06 66399004.20
Non-current assets maturing within one
year Other current liabilities 5.24 1529468.07 1589635.30
Other current assets 5.7 98007925.22 72249391.81 Total current liabilities 575791682.95 820767085.99
Total current assets 2952053912.35 3083253486.79 Non-current liabilities:
Non-current assets: Insurance contract reserve
Debt investments Long-term borrowings
Other debt investments Bonds payable
Long-term receivables Including: Preference share
Long-term equity investments 5.8 50907036.84 51862607.30 Perpetual debt
Other equity instrument investment Lease liabilities 5.25 35065292.04 43526352.52
Other non-current financial assets Long-term payables
Investment properties 5.9 301002364.41 360255832.14 Long-term employee benefits payable
Fixed assets 5.10 377568144.41 355785354.68 Estimated liabilities
Construction in progress Deferred income 5.26 952785.69
Productive biological assets Deferred tax liabilities 5.14 4990541.42 5208920.69
Oil and gas assets Other non-current liabilities
Right-of-use assets 5.11 98437976.41 109452481.64 Total non-current liabilities 40055833.46 49688058.90
Intangible assets 5.12 31567927.16 31664380.77 Total liabilities 615847516.41 870455144.89
Development expenditures Owners’ equity
Goodwill Share capital 5.27 405764007.00 415219970.00
Long-term deferred expenses 5.13 110205323.29 122324355.13 Other equity instruments
Deferred tax assets 5.14 82155778.31 80227771.46 Including: Preference shares
Other non-current assets 5.15 3792253.84 9434627.17 Perpetual debt
Capital reserves 5.28 936339503.60 990159033.17
Less: Treasury stock 5.29 12815556.81 78645532.23
Other comprehensive income 5.30 15686794.62 19325335.93
Special reserves 5.31 4340162.76 3223158.06
Surplus reserves 5.32 275010401.50 275010401.50
General risk reserves
Retained earnings 5.33 1767517887.94 1709513385.76
Total owner’s equity attributable to parent company 3391843200.61 3333805752.19
Non-controlling interests
Total non-current assets 1055636804.67 1121007410.29 Total owners’ equity 3391843200.61 3333805752.19
Total assets 4007690717.02 4204260897.08 Total liabilities and owners' equity 4007690717.02 4204260897.08
Legal Representative: Zhang Xuhua Chief Financial Officer：Song Yaoming Finance Manager：Tian Hui
1Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 December 2024
Prepared by: FIYTA Precision Technology Co. Ltd. Unit：Yuan Currency: RMB
Item Note 2024 2023
I. Revenue 5.34 3940530934.07 4569690002.99
II. Cost of sales 3647655677.55 4150297794.32
Including: operating cost 5.34 2476197934.43 2905463474.81
Taxes and surcharges 5.35 31477134.80 36193846.10
Selling and distribution expenses 5.36 882777806.63 924009179.32
General and administrative expenses 5.37 183277930.17 205359277.24
Research and development expenses 5.38 56000000.18 57802244.08
Finance costs 5.39 17924871.34 21469772.77
Including: Interest expense 5.39 10697706.12 12824222.06
Interest income 5.39 4925264.78 5722586.39
Add: Other income 5.40 7492642.33 11435373.78
Investment income/(losses) 5.41 -431254.89 -5819479.60
Including: Investment income from associates and joint ventures 5.41 -955570.46 -5819479.60
Gains /(losses) from derecognition of financial assets measured at amortised cost
Gains /(losses) from foreign exchange
Income /(losses) from net exposure hedging
Gains/(losses) from changes in fair values
Credit impairment losses 5.42 266485.96 6827575.82
Asset impairment losses 5.43 -19289865.31 571980.37
Gains/(losses) from disposal of assets 5.44 2367816.60 685868.57
III. Profit/(loss) from operations 283281081.21 433093527.61
Add: Non-operating income 5.45 3623505.31 4770506.80
Less: Non-operating expenses 5.46 788917.93 859770.10
IV. Profit/(loss) before tax 286115668.59 437004264.31
Less: Income tax expenses 5.47 65765483.60 103826161.94
V. Net profit/(loss) for the year 220350184.99 333178102.37
(I) Net profit/(loss) by continuity
Net profit/(loss) from continuing operation 220350184.99 333178102.37
Net profit/(loss) from discontinued operation
(II) Net profit/(loss) by ownership attribution
Attributable to owners of the parent 220350184.99 333178102.37
Attributable to non-controlling interests
VI. Other comprehensive income for the year after tax -3638541.31 13585746.04
(a) Attributable to owners of the parent -3638541.31 13585746.04
(i) Other comprehensive income that will not be reclassified subsequently to profit or loss
(ii) Other comprehensive income to be reclassified subsequently to profit or loss -3638541.31 13585746.04
1. Exchange differences on translating foreign operations -3638541.31 13585746.04
(b) Attributable to non-controlling interests
VII. Total comprehensive income for the year 216711643.68 346763848.41
Attributable to owners of the parent 216711643.68 346763848.41
Attributable to non-controlling interests
VIII. Earnings per share:
Basic earnings per share 0.5385 0.8082
Diluted earnings per share 0.5378 0.8075
Legal Representative: Zhang Xuhua Chief Financial Officer：Song Yaoming Finance Manager： Tian Hui
2Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Consolidated Statement of Cash Flows
For the year ended 31 December 2024
Prepared by: FIYTA Precision Technology Co. Ltd. Unit：Yuan Currency: RMB
Item Note 2024 2023
I. Cash flows from operating activities
Cash received from the sale of goods and the rendering of services 4337357146.69 5025883440.00
Cash received from tax refund 2096237.99 1937203.71
Other cash received relating to operating activities 5.49 49625091.94 68179211.21
Subtotal of cash inflows from operating activities 4389078476.62 5095999854.92
Cash payments for goods purchased and services received 2664684979.78 3155385386.12
Cash payments to and on behalf of employees 596768402.64 624495756.20
Payments for taxes 260501102.47 296079135.93
Other cash payments relating to operating activities 5.49 330393031.44 387638088.69
Subtotal of cash outflows from operating activities 3852347516.33 4463598366.94
Net cash flows from operating activities 536730960.29 632401487.98
II. Cash flows from investing activities
Cash received from disposal and redemption of investments
Cash received from returns on investments 418515.82 500000.00
Net cash received from disposals of fixed assets intangible assets and other long-term assets 4848874.32 1278284.57
Net cash received from disposals of subsidiaries and other business units
Other cash received relating to investing activities 5.49 201839677.57
Subtotal of cash inflows from investing activities 207107067.71 1778284.57
Cash payments to acquire fixed intangible and other long-term assets 86818686.04 91104776.03
Cash payments to acquire investments
Net cash payments to acquire subsidiaries and other business units
Other cash payments relating to investing activities 5.49 231179882.49
Subtotal of cash outflows from investing activities 317998568.53 91104776.03
Net cash flows from investing activities -110891500.82 -89326491.46
III. Cash flows from financing activities
Cash received from capital contributions
Including: Cash receipts from capital contributions form non-controlling interests of subsidiaries
Cash received from borrowings 323957187.86 250000000.00
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities 323957187.86 250000000.00
Cash repayments of debts 450000000.00 290000000.00
Cash payments for dividends distribution of profit and interest expenses 168545613.69 114106711.75
Including: Dividends distribution of profit paid to non-controlling shareholders of subsidiaries
Other cash payments relating to financing activities 5.49 116757093.91 198056975.77
Subtotal of cash outflows from financing activities 735302707.60 602163687.52
Net cash flows from financing activities -411345519.74 -352163687.52
IV. Effect of foreign exchange rate changes on cash and cash equivalents -168915.95 -20544.93
V. Net increase / (decrease) in cash and cash equivalents 14325023.78 190890764.07
Plus: Cash and cash equivalents at the beginning of the period 504629153.71 313738389.64
VI. Cash and cash equivalents at the end of the period 518954177.49 504629153.71
Legal Representative: Zhang Xuhua Chief Financial Officer:Song Yaoming Finance Manager:Tian Hui
3Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Consolidated Statement of Changes in Owners' Equity
For the year ended 31 December 2024
Prepared by: FIYTA Precision Technology Co. Ltd. Unit：Yuan Currency: RMB
2024
Owners’ equity attributable to the parent company
Item Non-
Other equity instruments Genera
contro Total
Share Capital Less: Other l Retaine
lling owners’
capital Prefer Perpetual Ot reserves Treasury comprehensiv
Special Surplus
reserves reserves risk d Subtotal
interes equity
stock e income reserve earnings tsence capital her
shares securities s s
I. Balance at 31 December 2023 415219970.00 990159033 78645532.23 19325335.93 3223158.06
2750101709513333805333380.17401.503385.76752.195752.19
Add：Changes in accounting policies
Correction of prior period errors
Business combination under common
control
Others
II. Balance at 1 January 2024 415219 990159033970.00 .17 78645532.23 19325335.93 3223158.06
2750101709513333805333380
401.503385.76752.195752.19
III. Changes in equity during the reporting - -945596 53819529. -65829975.42 -3638541.31 1117004.70 580045 5803744period 3.00 57 02.18 8.42
580374
48.42
(i) Total comprehensive income -3638541.31 220350 2167116 216711184.99 43.68 643.68
(ii) Capital contributions or withdrawals by - -
owners 945596 53819529. -65829975.42 2554482 2554483.00 57 .85 2.85
1. Ordinary shares contributed by - -
shareholders 935576 54984906. -64340669.423.00 42
2．Capital contributed by holders of
other equity instruments
3．Share-based payments recognised in owners’ -100200. 1165376.8 -1489306.00 2554482 255448equity 00 5 .85 2.85
4．Others
4Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
---
(iii) Profit distribution 162345 1623456 162345
682.8182.81682.81
1．Transfer to surplus reserves
2. Transfer to general risk reserves
3 Profit distribution to owners (or - - -．
shareholders) 162345 1623456 162345682.81 82.81 682.81
4．Others
(iv) Transfer within owners' equity
1． Capital reserves converted to share capital
2．Surplus reserves converted to share capital
3．Loss made up by surplus reserves
4．Changes in the defined benefit plan
transferred to retained earnings
5. Other comprehensive income transferred to
retained earnings
6. Others
(v) Special reserves 1117004.70 1117004 111700.70 4.70
1．Withdrawal during the reporting period 1521112.80 1521112 152111.80 2.80
--
2．Usage during the reporting period -404108.10 404108.1 404108.
010
(vi) Others
IV. Balance at 31 December 2024 405764007.00 936339503 12815556.81 15686794.62 4340162.76
2750101767513391843339184.60401.507887.94200.613200.61
Legal Representative: Zhang Xuhua Chief Financial Officer:Song Yaoming Finance Manager:Tian Hui
4Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Consolidated Statement of Changes in Owners' Equity
For the year ended 31 December 2024
Prepared by: FIYTA Precision Technology Co. Ltd. Unit：Yuan Currency: RMB
2023
Owners’ equity attributable to the parent company
Other equity
Item instruments Non-
Less: Other General controlling
Total owners’
Share Perpetu Capital equityPrefe
capital al reserves Treasury comprehensive
Special Surplus risk Retained Subtotal interests
rence capital Oth stock income
reserves reserves reserves earnings
share
s securiti
ers
es
I. Balance at 31
December 2022 41762796 100708660.00 43.48 50759806.16 5739589.89 2012064.91
275010401.514797063136423492.3136423492.
0638.531515
Add：Changes in
accounting
policies
Correction
of prior period
errors
Business
combination under
common control
Others
II. Balance at 1
January 2023 41762796 100708660.00 43.48 50759806.16 5739589.89 2012064.91
275010401.514797063136423492.3136423492.
0638.531515
III. Changes in - -
equity during the 2407990. 16927610.reporting period 00 31 27885726.07 13585746.04 1211093.15
22980674
7.23197382260.04197382260.04
(i) Total
comprehensive 13585746.04 33317810income 2.37 346763848.41 346763848.41
(ii) Capital
contributions or - -
withdrawals by 2407990. 16927610.--
00 31 27885726.07 47221326.38 47221326.38owners
1. Ordinary
shares contributed - -
by 64340669.42 64340669.42 64340669.42
shareholders
2．Capital
contributed by
holders of
other equity
instruments
3．Share-based
payments - -
recognised in 2407990. 16915253.-
00 76 36454943.35 17131699.59 17131699.59owners’ equity
4Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
4．Others - - -12356.55 12356.55 12356.55
(iii) Profit -
distribution 10337135
--
5.14103371355.14103371355.14
1．Transfer to
surplus reserves
2. Transfer to
general risk
reserves
3．Profit
distribution to - - -
owners (or 103371355.14 103371355.14 103371355.14shareholders)
4．Others
(iv) Transfer
within owners'
equity
1． Capital
reserves converted
to share capital
2．Surplus
reserves converted
to share capital
3．Loss made up
by surplus reserves
4．Changes in
the defined benefit
plan transferred to
retained earnings
5. Other
comprehensive
income transferred
to retained
earnings
6. Others
(v) Special
reserves 1211093.15 1211093.15 1211093.15
1．Withdrawal
during the
reporting period 1537825.22 1537825.22 1537825.22
2．Usage during
the reporting - - -326732.07 326732.07 326732.07
period
(vi) Others
IV. Balance at 31
December 2023 41521997 990159033 78645532.23 19325335.93 3223158.06 275010401.5 1709513 3333805752. 3333805752.0.00 .17 0 385.76 19 19
Legal Representative: Zhang Xuhua Chief Financial Officer:Song Yaoming Finance Manager:Tian Hui
4Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Statement of Financial Position of Parent Company
31 December 2024
Prepared by: FIYTA Precision Technology Co. Ltd. Unit：Yuan Currency: RMB
Item Note 2024-12-31 2023-12-31 Item Note 2024-12-31 2023-12-31
Current assets: Current liabilities:
Monetary funds 390160466.41 308230255.35 Short-term borrowings 120130566.65 250187763.87
Financial assets held-for-trading Financial liabilities held-for-trading
Derivative financial assets Derivative financial liabilities
Notes receivable Notes payable
Accounts receivable 16.1 4631990.38 1822916.61 Accounts payable 1928876.85 2285657.88
Accounts receivable financing Receipts in advance 11783796.49 10267758.31
Advances to suppliers Contract liabilities
Other receivables 16.2 659565868.48 696328419.85 Employee benefits payable 23190240.79 25886702.67
Including: Interests receivable Taxes payable 779783.47 3322241.54
Dividend receivable Other payables 252129600.19 224668548.77
Inventories 45565.43 Including: Interests payables
Contract assets Dividend payables 2785293.14 2058352.24
Assets classified as held for sale Liabilities classified as heldfor sale
Non-current assets maturing within one Non-current liabilities
year maturing within one year
Other current assets 16189136.04 15886769.82 Other current liabilities
Total current assets 1070593026.74 1022268361.63 Total current liabilities 409942864.44 516618673.04
Non-current assets: Non-current liabilities:
Debt investments Long-term borrowings
Other debt investments Bonds payable
Long-term receivables Including: Preference share
Long-term equity investments 16.3 1643450922.75 1633041716.11 Perpetual debt
Other equity instrument investment Lease liabilities
Other non-current financial assets Long-term payables
Investment properties 237185496.11 293695692.68 Long-term employee benefitspayable
Fixed assets 241791004.56 207209890.94 Estimated liabilities
Construction in progress Deferred income 952785.69
Productive biological assets Deferred tax liabilities
Oil and gas assets Other non-current liabilities
Right-of-use assets Total non-current liabilities 952785.69
Intangible assets 24189360.11 23460211.70 Total liabilities 409942864.44 517571458.73
Development expenditures Owners’ equity
Goodwill Share capital 405764007.00 415219970.00
Long-term deferred expenses 3692497.29 4795846.73 Other equity instruments
Deferred tax assets 931572.58 640783.05 Including: Preference shares
Other non-current assets 1358052.54 710807.49 Perpetual debt
Capital reserves 939217999.41 993037528.98
Less: Treasury stock 12815556.81 78645532.23
Other comprehensive income
Special reserves
Surplus reserves 275010401.50 275010401.50
Retained earnings 1206072217.14 1063629483.35
Total non-current assets 2152598905.94 2163554948.70 Total owners’ equity 2813249068.24 2668251851.60
Total non-current assets 3223191932.68 3185823310.33 Total liabilities and owners'equity 3223191932.68 3185823310.33
Legal Representative: Zhang Xuhua Chief Financial Officer:Song Yaoming Finance Manager:Tian Hui
5Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Statement of Profit or Loss and Other Comprehensive Income of Parent Company
For the year ended 31 December 2024
Prepared by: FIYTA Precision Technology Co. Ltd. Unit：Yuan Currency: RMB
Item Note 2024 2023
I. Revenue 16.4 184540282.60 180874926.74
Less: Costs of sales 16.4 56887861.74 49729440.87
Taxes and surcharges 7760550.74 7815174.54
Selling and distribution expenses 36615636.74 16395826.35
Administrative expenses 50131039.57 53755060.51
Research and development expenses 13813526.33 12959491.24
Finance costs -2116792.12 -947061.34
Including: Interest expense 1342394.82 2405575.67
Interest income 3871354.75 4460371.04
Add: Other income 1163695.74 1097603.80
Investment income/(losses) 16.5 287322662.30 192180520.40
Including: Investment income from associates and joint ventures 16.5 -955570.46 -5819479.60
Gains /(losses) from derecognition of financial assets measured at amortised
cost
Income /(losses) from net exposure hedging
Gains/(losses) from changes in fair values
Credit impairment losses -1785286.03 -104859.73
Asset impairment losses
Gains/(losses) from disposal of assets 2917069.98 635033.80
II. Profit/(loss) from operations 311066601.59 234975292.84
Add: Non-operating income 1273.46 8037.20
Less: Non-operating expenses 360776.94 312375.33
III. Profit/(loss) before tax 310707098.11 234670954.71
Less: Income tax expenses 5918681.51 10687283.10
IV. Net profit/(loss) for the year 304788416.60 223983671.61
Net profit/(loss) from continuing operation 304788416.60 223983671.61
Net profit/(loss) from discontinued operation
V. Other comprehensive income for the year after tax
(i) Other comprehensive income that will not be reclassified subsequently to
profit or loss
(ii) Other comprehensive income to be reclassified subsequently to profit or
loss
VI. Total comprehensive income for the year 304788416.60 223983671.61
Legal Representative: Zhang Xuhua Chief Financial Officer:Song Yaoming Finance Manager:Tian Hui
6Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Statement of Cash Flows of Parent Company
For the year ended 31 December 2024
Prepared by: FIYTA Precision Technology Co. Ltd. Unit：Yuan Currency: RMB
Item Note 2024 2023
I. Cash flows from operating activities
Cash received from the sale of goods and the rendering of services 195929990.98 189464980.58
Cash received from tax refund 47921.04
Other cash received relating to operating activities 3946025896.49 4225525553.06
Subtotal of cash inflows from operating activities 4142003808.51 4414990533.64
Cash payments for goods purchased and services received 20605249.00 9573850.00
Cash payments to and on behalf of employees 74801849.07 61402333.15
Payments for taxes 24754181.25 20428198.75
Other cash payments relating to operating activities 3917630232.90 4154707540.94
Subtotal of cash outflows from operating activities 4037791512.22 4246111922.84
Net cash flows from operating activities 104212296.29 168878610.80
II. Cash flows from investing activities
Cash received from disposal and redemption of investments
Cash received from returns on investments 288278232.76 198500000.00
Net cash received from disposals of fixed assets intangible assets and other long-term assets 4742145.47 1146737.46
Net cash received from disposals of subsidiaries and other business units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 293020378.23 199646737.46
Cash payments to acquire fixed intangible and other long-term assets 5993530.21 7686801.71
Cash payments to acquire investments 10000000.00 90000000.00
Net cash payments to acquire subsidiaries and other business units
Other cash payments relating to investing activities
Subtotal of cash outflows from investing activities 15993530.21 97686801.71
Net cash flows from investing activities 277026848.02 101959935.75
III. Cash flows from financing activities
Cash received from capital contributions
Cash received from borrowings 320000000.00 250000000.00
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities 320000000.00 250000000.00
Cash repayments of debts 450000000.00 290000000.00
Cash payments for dividends distribution of profit and interest expenses 168545613.69 114106711.75
Other cash payments relating to financing activities 794690.45 83148230.83
Subtotal of cash outflows from financing activities 619340304.14 487254942.58
Net cash flows from financing activities -299340304.14 -237254942.58
IV. Effect of foreign exchange rate changes on cash and cash equivalents 31370.89 -44371.78
V. Net increase / (decrease) in cash and cash equivalents 81930211.06 33539232.19
Plus: Cash and cash equivalents at the beginning of the period 308230255.35 274691023.16
VI. Cash and cash equivalents at the end of the period 390160466.41 308230255.35
Legal Representative: Zhang Xuhua Chief Financial Officer:Song Yaoming Finance Manager:Tian Hui
7Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Statement of Changes in Owners' Equity of Parent Company
For the year ended 31 December 2024
Prepared by: FIYTA Precision Technology Co. Ltd. Unit：Yuan Currency: RMB
2024
Other equity instruments
Item Other
Share capital Perpetua Capital reserves Less: Treasury comprehenstock sive Special reserves Surplus reserves Retained earnings Total owners’ equityPreferenc l capital
e shares securitie Others income
s
I. Balance at 31
December 2023 415219970.00 993037528.98 78645532.23 275010401.50 1063629483.35 2668251851.60
Add：Changes in
accounting
policies
Correction
of prior period
errors
Others
II. Balance at 1
January 2024 415219970.00 993037528.98 78645532.23 275010401.50 1063629483.35 2668251851.60
III. Changes in
equity during the -
reporting period 9455963.00
-53819529.57-65829975.42142442733.79144997216.64
(i) Total
comprehensive 304788416.60 304788416.60
income
(ii) Capital
contributions or -
withdrawals by 9455963.00 -53819529.57 -65829975.42 2554482.85
owners
1. Ordinary
shares contributed -
by 9355763.00 -54984906.42 -64340669.42
shareholders
2．Capital
contributed by
holders of
other equity
instruments
3．Share-based
payments -
recognised in 100200.00
1165376.85-1489306.002554482.85
owners’ equity
8Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
4．Others
(iii) Profit
distribution -162345682.81 -162345682.81
1．Transfer to
surplus reserves
2．Profit
distribution to -162345682.81 -162345682.81
owners (or
shareholders)
3．Others
(iv) Transfer
within owners'
equity
1． Capital
reserves converted
to share capital
2．Surplus
reserves converted
to share capital
3．Loss made up
by surplus
reserves
4．Changes in
the defined benefit
plan transferred to
retained earnings
5. Other
comprehensive
income transferred
to retained
earnings
6. Others
(v) Special
reserves
1．Withdrawal
during the
reporting period
2．Usage during
the reporting
period
(vi) Others
IV. Balance at 31
December 2024 405764007.00 939217999.41 12815556.81 275010401.50 1206072217.14 2813249068.24
Legal Representative: Zhang Xuhua Chief Financial Officer:Song Yaoming Finance Manager:Tian Hui
8Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
Statement of Changes in Owners' Equity
For the year ended 31 December 2024
Prepared by: FIYTA Precision Technology Co. Ltd.Unit：Yuan Currency: RMB
2023
Other equity instruments
Item Other
Share Special
Prefer Perpetuacapital Capital reserves Less: Treasury stock
comprehe
nsive reserve Surplus reserves Retained earnings Total owners’ equity
ence l capitalsecuritie Others income
s
shares s
I. Balance at 31
December 2022 417627960. 1010917776.19 50759806.16 275010401.50 943017166.88 2595813498.4100
Add：Changes in
accounting policies
Correction of
prior period errors
Others
II. Balance at 1
January 2023 417627960. 1010917776.19 50759806.16 275010401.50 943017166.88 2595813498.4100
III. Changes in equity
during the reporting -2407990.00 -17880247.21 27885726.07 120612316.47 72438353.19period
(i) Total comprehensive
income 223983671.61 223983671.61
(ii) Capital contributions
or withdrawals by -2407990.00 -17880247.21 27885726.07 -48173963.28owners
1. Ordinary shares
contributed by 64340669.42 -64340669.42
shareholders
2．Capital contributed
by holders of
other equity instruments
3．Share-based
payments recognised in -2407990.00 -17867890.66 -36454943.35 16179062.69owners’ equity
4．Others -12356.55 -12356.55
(iii) Profit distribution -103371355.14 -103371355.14
8Full text of 2024 Annual Report of FIYTA Precision Technology Co. Ltd.
1．Transfer to surplus
reserves
2．Profit distribution
to owners (or -103371355.14 -103371355.14
shareholders)
3．Others
(iv) Transfer within
owners' equity
1． Capital reserves
converted to share
capital
2．Surplus reserves
converted to share
capital
3．Loss made up by
surplus reserves
4．Changes in the
defined benefit plan
transferred to retained
earnings
5. Other comprehensive
income transferred to
retained earnings
6. Others
(v) Special reserves
1．Withdrawal during
the reporting period
2．Usage during the
reporting period
(vi) Others
IV. Balance at 31
December 2023 415219970. 993037528.98 78645532.23 275010401.50 1063629483.35 2668251851.6000
Legal Representative: Zhang Xuhua Chief Financial Officer:Song Yaoming Finance Manager:Tian Hui
8FIYTA Precision Technology Co. Ltd. Notes to the financial statements
FIYTA Precision Technology Co. Ltd.Notes to the Financial Statements
For the year ended 31 December 2024
（All amounts are expressed in Renminbi Yuan(“RMB”)unless otherwise stated）
1. BASIC INFORMATION ABOUT THE COMPANY
FIYTA Precision Technology Co. Ltd. (hereinafter referred to as “the Company”) was
established 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 andExport 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.As at 31 December 2024 the outstanding shares issued by the Company was 405.764007
million shares and the registered capital was 405.764007 million after a series of share
dividends rights offering capitalization of reserves and issuing of new shares. The
Company’s registered address is FIYTA Hi-Tech Building Gao Xin Nan Yi Dao Nanshan
District Shenzhen Guangdong Province where the Company’s headquarters locates. The
parent company of the Company is CATIC Shenzhen Holdings Limited (CATIC Shenzhen)
and the ultimate controlling party of the Company is Aviation Industry Corporation of China
Ltd. (AVIC) .The business nature and main operating activities of the Company and its subsidiaries mainly
include: Watch and Clock Sales; Watch and Timing Instrument Manufacturing; Watch and
Timing Instrument Sales; Jewelry Wholesale; Jewelry Retail; Wearable Intelligent Devices
Manufacturing; Wearable Intelligent Devices Sales; Non-residential Real Estate Leasing;
Professional Design Services; Sales of Household Electrical Appliances; Sales of Satellite
Mobile Communication Terminals. (Except for projects that require approval by law business
activities may be conducted independently based on the business license in accordance with
the law.)
The Company included a total of 12 subsidiaries in the consolidation scope for the
current period. For details refer to Note 7 Interests in Other Entities. There were no changes
in the entities included in the consolidated financial statements compared to the previous
period.The financial statements were approved and authorized for issue upon the resolution of the
Company’s Board of Directors meeting on 12 March 2025.
2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
9FIYTA Precision Technology Co. Ltd. Notes to the financial statements
2.1 Basis of Preparation
Based on going concern according to actually occurred transactions and events the Company
prepares its financial statements in accordance with the Accounting Standards for Business
Enterprises – Basic standards and concrete accounting standards Accounting Standards for
Business Enterprises – Application Guidelines Accounting Standards for Business
Enterprises – Interpretations and other relevant provisions (collectively known as
“Accounting Standards for Business Enterprises issued by Ministry of Finance of PRC”). In
addition the Company discloses the relevant financial information in accordance with "Rules
No.15 for the Information Disclosure and Reporting of Companies Offering Securities to the
Public - General Requirements for Financial Reporting (2023 Revision)" issued by CSRC.
2.2 Going Concern
The Company has assessed its ability to continually operate for the next twelve months from
the end of the reporting period and no any matters that may result in doubt on its ability as a
going concern were noted. Therefore it is reasonable for the Company to prepare financial
statements on the going concern basis.
3. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
The following significant accounting policies and accounting estimates of the Company are
formulated in accordance with the Accounting Standards for Business Enterprises. Businesses
not mentioned are complied with relevant accounting policies of the Accounting Standards for
Business Enterprises.
3.1 Statement of Compliance with the Accounting Standards for Business Enterprises
The Company prepares its financial statements in accordance with the requirements of the
Accounting Standards for Business Enterprises truly and completely reflecting the
Company’s financial position as at 31 December 2024 and its operating results changes in
shareholders' equity cash flows and other related information for the year then ended.
3.2 Accounting Period
The accounting year of the Company is from 1 January to 31 December in calendar year.
3.3 Operating Cycle
The normal operating cycle of the Company is twelve months.
3.4 Functional Currency
The Company and its domestic subsidiaries use RMB as the functional currency. The
Company’s overseas subsidiary FIYTA (Hong Kong) Limited (“FIYTA Hong Kong” )
has determined HKD as its functional currency based on the primary economic environment
in which it operates. Montres Chouriet SA a subsidiary of FIYTA Hong Kong has
determined CHF as its functional currency based on its operating environment. When
preparing financial statements their amounts are translated into RMB. The Company prepares
its financial statements in RMB.
10FIYTA Precision Technology Co. Ltd. Notes to the financial statements
3.5 Determining Factor and Basis of Selection of Materiality
Item Factor and basis of materiality
Accounts receivable with significant reversal or
The amount of an individual item for year-end
recovery of provision for bad debts recognized balance is more than RMB 1000000
during the current period
Significant other payables aged more than one year The amount of an individual item for year-end
balance is more than RMB 1000000
3.6 Accounting Treatment of Business Combinations under and not under Common
Control
(a) Business combinations under common control
The assets and liabilities that the Company obtains in a business combination under common
control shall be measured at their carrying amount of the acquired entity at the combination
date. If the accounting policy adopted by the acquired entity is different from that adopted by
the acquiring entity the acquiring entity shall according to accounting policy it adopts adjust
the relevant items in the financial statements of the acquired party based on the principal of
materiality. As for the difference between the carrying amount of the net assets obtained by
the acquiring entity and the carrying amount of the consideration paid by it the capital reserve
(capital premium or share premium) shall be adjusted. If the capital reserve (capital premium
or share premium) is not sufficient to absorb the difference any excess shall be adjusted
against retained earnings.(b) Business combinations not under common control
The assets and liabilities that the Company obtains in a business combination not under
common control shall be measured at their fair value at the acquisition date. If the accounting
policy adopted by the acquired entity is different from that adopted by the acquiring entity
the acquiring entity shall according to accounting policy it adopts adjust the relevant items in
the financial statements of the acquired entity based on the principal of materiality. The
acquiring entity shall recognise the positive balance between the combination costs and the
fair value of the identifiable net assets it obtains from the acquired entity as goodwill. The
acquiring entity shall pursuant to the following provisions treat the negative balance between
the combination costs and the fair value of the identifiable net assets it obtains from the
acquired entity:
(i) It shall review the measurement of the fair values of the identifiable assets liabilities and
contingent liabilities it obtains from the acquired entity as well as the combination costs;
(ii) If after the review the combination costs are still less than the fair value of the
identifiable net assets it obtains from the acquired entity the balance shall be recognised in
profit or loss of the reporting period.(c) Treatment of business combination related costs
11FIYTA Precision Technology Co. Ltd. Notes to the financial statements
The intermediary costs such as audit legal services and valuation consulting and other related
management costs that are directly attributable to the business combination shall be charged
in profit or loss in the period in which they are incurred. The costs to issue equity or debt
securities for the consideration of business combination shall be recorded as a part of the
value of the respect equity or debt securities upon initial recognition.
3.7 Judgment of Control and Method of Preparing the Consolidated Financial
Statements
(a) Judgment of control and consolidation decision
Control exists when the Company has power over the investee exposure or rights to variable
returns from its involvement with the investee and the ability to use its power over the
investee to affect the amount of the returns. The definition of control contains there elements:
- power over the investee; exposure or rights to variable returns from the Company’s
involvement with the investee; and the ability to use its power over the investee to affect the
amount of the investor’s returns. The Company controls an investee if and only if the
Company has all the above three elements.The scope of consolidated financial statements shall be determined on the basis of control. It
not only includes subsidiaries determined based on voting rights (or similar) or together with
other arrangement but also structured entities under one or more contractual arrangements.Subsidiaries are the entities that controlled by the Company (including enterprise a divisible
part of the investee and structured entity controlled by the enterprise). A structured entity
(sometimes called a Special Purpose Entity) is an entity that has been designed so that voting
or similar rights are not the dominant factor in deciding who controls the entity.(b) Method of preparing the consolidated financial statements
The consolidated financial statements shall be prepared by the Company based on the
financial statements of the Company and its subsidiaries and using other related information.When preparing consolidated financial statements the Company shall consider the entire
group as an accounting entity adopt uniform accounting policies and apply the requirements
of Accounting Standard for Business Enterprises related to recognition measurement and
presentation. The consolidated financial statements shall reflect the overall financial position
operating results and cash flows of the group.(i) Like items of assets liabilities equity income expenses and cash flows of the parent are
combined with those of the subsidiaries.(ii) The carrying amount of the parent’s investment in each subsidiary is eliminated (off-set)
against the parent’s portion of equity of each subsidiary.(iii) Eliminate the impact of intragroup transactions between the Company and the
subsidiaries or between subsidiaries and when intragroup transactions indicate an impairment
of related assets the losses shall be recognised in full.(iv) Make adjustments to special transactions from the perspective of the group.
12FIYTA Precision Technology Co. Ltd. Notes to the financial statements
(c) Special consideration in consolidation elimination
(i) Long-term equity investment held by the subsidiaries to the Company shall be recognised
as treasury stock of the Company which is offset with the owner’s equity represented as
“treasury stock” under “owner’s equity” in the consolidated statement of financial position.Long-term equity investment held by subsidiaries between each other is accounted for taking
long-term equity investment held by the Company to its subsidiaries as reference. That is the
long-term equity investment is eliminated (off-set) against the portion of the corresponding
subsidiary’s equity.(ii) Due to not belonging to paid-in capital (or share capital) and capital reserve and being
different from retained earnings and undistributed profit “Specific reserves” and “Generalrisk provision” shall be recovered based on the proportion attributable to owners of the parent
company after long-term equity investment to the subsidiaries is eliminated with the
subsidiaries’ equity.(iii) If temporary timing difference between the book value of the assets and liabilities in the
consolidated statement of financial position and their tax basis is generated as a result of
elimination of unrealized inter-company transaction profit or loss deferred tax assets of
deferred tax liabilities shall be recognised and income tax expense in the consolidated
statement of profit or loss shall be adjusted simultaneously excluding deferred taxes related
to transactions or events directly recognised in owner’s equity or business combination.(iv) Unrealised inter-company transactions profit or loss generated from the Company sellingassets to its subsidiaries shall be eliminated against “net profit attributed to the owners of theparent company” in full. Unrealized inter-company transactions profit or loss generated fromthe subsidiaries selling assets to the Company shall be eliminated between “net profitattributed to the owners of the parent company” and “non-controlling interests” pursuant to
the proportion of the Company in the related subsidiaries. Unrealized inter-company
transactions profit or loss generated from the assets sales between the subsidiaries shall be
eliminated between “net profit attributed to the owners of the parent company” and “non-controlling interests” pursuant to the proportion of the Company in the selling subsidiaries.(v) If loss attributed to the minority shareholders of a subsidiary in current period is more than
the proportion of non-controlling interest in this subsidiary at the beginning of the period
non-controlling interest is still to be written down.
3.8 Classification of Joint Arrangements and Accounting for Joint Operation
A joint arrangement is an arrangement of which two or more parties have joint control. Joint
arrangement of the Company is classified as either a joint operation or a joint venture.(a) Joint operation
A joint operation is a joint arrangement whereby the parties that have joint control of the
arrangement have rights to the assets and obligations for the liabilities relating to the
arrangement.
13FIYTA Precision Technology Co. Ltd. Notes to the financial statements
The Company shall recognise the following items in relation to shared interest in a joint
operation and account for them in accordance with relevant accounting standards of the
Accounting Standards for Business Enterprises:
(i) its assets including its share of any assets held jointly;
(ii) its liabilities including its share of any liabilities incurred jointly;
(iii) its revenue from the sale of its share of the output arising from the joint operation;
(iv) its share of the revenue from the sale of the output by the joint operation; and
(v) its expenses including its share of any expenses incurred jointly.(b) Joint venture
A joint venture is a joint arrangement whereby the parties that have joint control of the
arrangement have rights to the net assets of the arrangement.The Company accounts for its investment in the joint venture by applying the equity method
of long-term equity investment.
3.9 Cash and Cash Equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash
equivalents include short-term (generally within three months of maturity at acquisition)
highly liquid investments that are readily convertible into known amounts of cash and which
are subject to an insignificant risk of changes in value.
3.10 Foreign Currency Transactions and Translation of Foreign Currency Financial
Statements
(a) Determination of the exchange rate for foreign currency transactions
At the time of initial recognition of a foreign currency transaction the amount in the foreign
currency shall be translated into the amount in the functional currency at the spot exchange
rate of the transaction date or at an exchange rate which is determined through a systematic
and reasonable method and is approximate to the spot exchange rate of the transaction date
(hereinafter referred to as the approximate exchange rate).(b) Translation of monetary items denominated in foreign currency on the balance sheet
date
The foreign currency monetary items shall be translated at the spot exchange rate on the
balance sheet date. The balance of exchange arising from the difference between the spot
exchange rate on the balance sheet date and the spot exchange rate at the time of initial
recognition or prior to the balance sheet date shall be recorded into the profits and losses at
the current period. The foreign currency non-monetary items measured at the historical cost
shall still be translated at the spot exchange rate on the transaction date; for the foreign
currency non-monetary items restated to a fair value measurement shall be translated into the
at the spot exchange rate at the date when the fair value was determined the difference
between the restated functional currency amount and the original functional currency amount
14FIYTA Precision Technology Co. Ltd. Notes to the financial statements
shall be recorded into the profits and losses at the current period.(c) Translation of foreign currency financial statements
Before translating the financial statements of foreign operations the accounting period and
accounting policy shall be adjusted so as to conform to the Company. The adjusted foreign
operation financial statements denominated in foreign currency (other than functional
currency) shall be translated in accordance with the following method:
(i) The asset and liability items in the statement of financial position shall be translated at the
spot exchange rates at the date of that statement of financial position. The owners’ equity
items except undistributed profit shall be translated at the spot exchange rates when they are
incurred.(ii) The income and expense items in the statement of profit and other comprehensive income
shall be translated at the spot exchange rates or approximate exchange rate at the date of
transaction.(iii) Foreign currency cash flows and cash flows of foreign subsidiaries shall be translated at
the spot exchange rate or approximate exchange rate when the cash flows are incurred. The
effect of exchange rate changes on cash is presented separately in the statement of cash flows
as an adjustment item.(iv) The differences arising from the translation of foreign currency financial statements shall
be presented separately as “other comprehensive income” under the owners’ equity items of
the consolidated statement of financial position.When disposing a foreign operation involving loss of control the cumulative amount of the
exchange differences relating to that foreign operation recognised under other comprehensive
income in the statement of financial position shall be reclassified into current profit or loss
according to the proportion disposed.
3.11 Financial Instruments
Financial instrument is any contract which gives rise to both a financial asset of one entity and
a financial liability or equity instrument of another entity.(a) Recognition and derecognition of financial instrument
A financial asset or a financial liability should be recognised in the statement of financial
position when and only when an entity becomes party to the contractual provisions of the
instrument.A financial asset can only be derecognised when meets one of the following conditions:
(i) The rights to the contractual cash flows from a financial asset expire
(ii) The financial asset has been transferred and meets one of the following derecognition
conditions:
Financial liabilities (or part thereof) are derecognised only when the liability is
extinguished—i.e. when the obligation specified in the contract is discharged or cancelled or
15FIYTA Precision Technology Co. Ltd. Notes to the financial statements
expires. An exchange of the Company (borrower) and lender of debt instruments that carry
significantly different terms or a substantial modification of the terms of an existing liability
are both accounted for as an extinguishment of the original financial liability and the
recognition of a new financial liability.Purchase or sale of financial assets in a regular-way shall be recognised and derecognised
using trade date accounting. A regular-way purchase or sale of financial assets is a transaction
under a contract whose terms require delivery of the asset within the time frame established
generally by regulations or convention in the market place concerned. Trade date is the date at
which the entity commits itself to purchase or sell an asset.(b) Classification and measurement of financial assets
At initial recognition the Company classified its financial asset based on both the business
model for managing the financial asset and the contractual cash flow characteristics of the
financial asset: financial asset at amortised cost financial asset at fair value through profit or
loss (FVTPL) and financial asset at fair value through other comprehensive income
(FVTOCI). Reclassification of financial assets is permitted if and only if the objective of the
entity’s business model for managing those financial assets changes. In this circumstance all
affected financial assets shall be reclassified on the first day of the first reporting period after
the changes in business model; otherwise the financial assets cannot be reclassified after
initial recognition.Financial assets shall be measured at initial recognition at fair value. For financial assets
measured at FVTPL transaction costs are recognised in current profit or loss. For financial
assets not measured at FVTPL transaction costs should be included in the initial
measurement. Notes receivable or accounts receivable that arise from sales of goods or
rendering of services are initially measured at the transaction price defined in the accounting
standard of revenue where the transaction does not include a significant financing component.Subsequent measurement of financial assets will be based on their categories:
(i)Financial asset at amortised cost
The financial asset at amortised cost category of classification applies when both the
following conditions are met: the financial asset is held within the business model whose
objective is to hold financial assets in order to collect contractual cash flows and the
contractual term of the financial asset gives rise on specified dates to cash flows that are
solely payment of principal and interest on the principal amount outstanding. These financial
assets are subsequently measured at amortised cost by adopting the effective interest rate
method. Any gain or loss arising from derecognition according to the amortization under
effective interest rate method or impairment are recognised in current profit or loss.(ii)Financial asset at fair value through other comprehensive income (FVTOCI)
The financial asset at FVTOCI category of classification applies when both the following
conditions are met: the financial asset is held within the business model whose objective is
achieved by both collecting contractual cash flows and selling financial assets and the
16FIYTA Precision Technology Co. Ltd. Notes to the financial statements
contractual term of the financial asset gives rise on specified dates to cash flows that are
solely payment of principle and interest on the principal amount outstanding. All changes in
fair value are recognised in other comprehensive income except for gain or loss arising from
impairment or exchange differences which should be recognised in current profit or loss. At
derecognition cumulative gain or loss previously recognised under OCI is reclassified to
current profit or loss. However interest income calculated based on the effective interest rate
is included in current profit or loss.The Company make an irrevocable decision to designate part of non-trading equity instrument
investments as measured through FVTOCI. All changes in fair value are recognised in other
comprehensive income except for dividend income recognised in current profit or loss. At
derecognition cumulative gain or loss are reclassified to retained earnings.(iii)Financial asset at fair value through profit or loss (FVTPL)
Financial asset except for above mentioned financial asset at amortised cost or financial asset
at fair value through other comprehensive income (FVTOCI) should be classified as financial
asset at fair value through profit or loss (FVTPL). These financial assets should be
subsequently measured at fair value. All the changes in fair value are included in current
profit or loss.(c) Classification and measurement of financial liabilities
The Company classified the financial liabilities as financial liabilities at fair value through
profit or loss (FVTPL) loan commitments at a below-market interest rate and financial
guarantee contracts and financial asset at amortised cost.Subsequent measurement of financial assets will be based on the classification:
(i)Financial liabilities at fair value through profit or loss (FVTPL)
Held-for-trading financial liabilities (including derivatives that are financial liabilities) and
financial liabilities designated at FVTPL are classified as financial liabilities at FVTP. After
initial recognition any gain or loss (including interest expense) are recognised in current
profit or loss except for those hedge accounting is applied. For financial liability that is
designated as at FVTPL changes in the fair value of the financial liability that is attributable
to changes in the own credit risk of the issuer shall be presented in other comprehensive
income. At derecognition cumulative gain or loss previously recognised under OCI is
reclassified to retained earnings.(ii)Loan commitments and financial guarantee contracts
Loan commitment is a commitment by the Company to provide a loan to customer under
specified contract terms. The provision of impairment losses of loan commitments shall be
recognised based on expected credit losses model.Financial guarantee contract is a contract that requires the Company to make specified
payments to reimburse the holder for a loss it incurs because a specified debtor fails to make
payment when due in accordance with the original or modified terms of a debt instrument.
17FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Financial guarantee contracts liability shall be subsequently measured at the higher of: The
amount of the loss allowance recognised according to the impairment principles of financial
instruments; and the amount initially recognised less the cumulative amount of income
recognised in accordance with the revenue principles.(iii) Financial liabilities at amortised cost
After initial recognition the Company measured other financial liabilities at amortised cost
using the effective interest method.Except for special situation financial liabilities and equity instrument should be classified in
accordance with the following principles:
(i) If the Company has no unconditional right to avoid delivering cash or another financial
instrument to fulfill a contractual obligation this contractual obligation meet the definition of
financial liabilities. Some financial instruments do not comprise terms and conditions related
to obligations of delivering cash or another financial instrument explicitly they may include
contractual obligation indirectly through other terms and conditions.(ii) If a financial instrument must or may be settled in the Company's own equity instruments
it should be considered that the Company’s own equity instruments are alternatives of cash or
another financial instrument or to entitle the holder of the equity instruments to sharing the
remaining rights over the net assets of the issuer. If the former is the case the instrument is a
liability of the issuer; otherwise it is an equity instrument of the issuer. Under some
circumstances it is regulated in the contract that the financial instrument must or may be
settled in the Company's own equity instruments where amount of contractual rights and
obligations are calculated by multiplying the number of the equity instruments to be available
or delivered by its fair value upon settlement. Such contracts shall be classified as financial
liabilities regardless that the amount of contractual rights and liabilities is fixed or fluctuate
totally or partially with variables other than market price of the entity’s own equity
instruments (such as interest rate price of some kind of goods or some kind of financial
instrument).(d) Derivatives and embedded derivatives
At initial recognition derivatives shall be measured at fair value at the date of derivative
contracts are signed and subsequently measured at fair value. The derivative with a positive
fair value shall be recognized as an asset and with a negative fair value shall be recognised as
a liability.Gains or losses arising from the changes in fair value of derivatives shall be recognised
directly into current profit or loss except for the effective portion of cash flow hedges which
shall be recognised in other comprehensive income and reclassified into current profit or loss
when the hedged items affect profit or loss.An embedded derivative is a component of a hybrid contract with a financial asset as a host
the Company shall apply the requirements of financial asset classification to the entire hybrid
contract. If a host that is not a financial asset and the hybrid contract is not measured at fair
18FIYTA Precision Technology Co. Ltd. Notes to the financial statements
value with changes in fair value recognised in profit or loss and the economic characteristics
and risks of the embedded derivative are not closely related to the economic characteristics
and risks of the host and a separate instrument with the same terms as the embedded
derivative would meet the definition of a derivative the embedded derivative shall be
separated from the hybrid instrument and accounted for as a separate derivative instrument. If
the Company is unable to measure the fair value of the embedded derivative at the acquisition
date or subsequently at the balance sheet date the entire hybrid contract is designated as
financial assets or financial liabilities at fair value through profit or loss.(e) Impairment of financial instrument
The Company shall recognise a loss allowance based on expected credit losses on a financial
asset that is measured at amortised cost a debt investment at fair value through other
comprehensive income a contract asset a lease receivable a loan commitment and a financial
guarantee contract.(i) Measurement of expected credit losses
Expected credit losses are the weighted average of credit losses of the financial instruments
with the respective risks of a default occurring as the weights. Credit loss is the difference
between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the Company expects to receive (ie all cash shortfalls)
discounted at the original effective interest rate or credit- adjusted effective interest rate for
purchased or originated credit-impaired financial assets.Lifetime expected credit losses are the expected credit losses that result from all possible
default events over the expected life of a financial instrument.
12-month expected credit losses are the portion of lifetime expected credit losses that
represent the expected credit losses that result from default events on a financial instrument
that are possible within the 12 months after the reporting date (or the expected lifetime if the
expected life of a financial instrument is less than 12 months).At each reporting date the Company classifies financial instruments into three stages and
makes provisions for expected credit losses accordingly. A financial instrument of which the
credit risk has not significantly increased since initial recognition is at stage 1. The Company
shall measure the loss allowance for that financial instrument at an amount equal to 12-month
expected credit losses. A financial instrument with a significant increase in credit risk since
initial recognition but is not considered to be credit-impaired is at stage 2. The Company shall
measure the loss allowance for that financial instrument at an amount equal to the lifetime
expected credit losses. A financial instrument is considered to be credit-impaired as at the end
of the reporting period is at stage 3. The Company shall measure the loss allowance for that
financial instrument at an amount equal to the lifetime expected credit losses.The Company may assume that the credit risk on a financial instrument has not increased
significantly since initial recognition if the financial instrument is determined to have low
credit risk at the reporting date and measure the loss allowance for that financial instrument at
19FIYTA Precision Technology Co. Ltd. Notes to the financial statements
an amount equal to 12-month expected credit losses.For financial instrument at stage 1 stage 2 and those have low credit risk the interest revenue
shall be calculated by applying the effective interest rate to the gross carrying amount of a
financial asset (ie impairment loss not been deducted). For financial instrument at stage 3
interest revenue shall be calculated by applying the effective interest rate to the amortised cost
after deducting of impairment loss.For notes receivable accounts receivable and accounts receivable financing no matter it
contains a significant financing component or not the Company shall measure the loss
allowance at an amount equal to the lifetime expected credit losses.Receivables
For the notes receivable accounts receivable other receivables accounts receivable financing
and long-term receivables which are demonstrated to be impaired by any objective evidence
or applicable for individual assessment the Company shall individually assess for impairment
and recognise the loss allowance for expected credit losses. If the Company determines that
no objective evidence of impairment exists for notes receivable accounts receivable other
receivables accounts receivable financing and long-term receivables or the expected credit
loss of a single financial asset cannot be assessed at reasonable cost such notes receivable
accounts receivable other receivables accounts receivable financing and long-term
receivables shall be divided into several groups with similar credit risk characteristics and
collectively calculated the expected credit loss. The determination basis of groups is as
following:
Determination basis of notes receivable is as following:
Group 1: Commercial acceptance bills
Group 2: Bank acceptance bills
For each group the Company calculates expected credit losses through default exposure and
the lifetime expected credit losses rate taking reference to historical experience for credit
losses and considering current condition and expectation for the future economic situation.Determination basis of accounts receivable is as following:
Group 1: Accounts receivables due from customers
For each group the Company calculates expected credit losses through preparing an aging
analysis schedule with the lifetime expected credit losses rate taking reference to historical
experience for credit losses and considering current condition and expectation for the future
economic situation.Determination basis of other receivables is as following:
Group 1: Deposit and guarantee receivable
Group 2: Employee advance payments
Group 3: Others
20FIYTA Precision Technology Co. Ltd. Notes to the financial statements
For each group the Company calculates expected credit losses through default exposure and
the 12-months or lifetime expected credit losses rate taking reference to historical experience
for credit losses and considering current condition and expectation for the future economic
situation.The Company calculates the aging of receivables (notes receivable accounts receivable and
other receivables) based on the period from the transaction date to the balance sheet date to
determine credit risk characteristic groups.Debt investment and other debt investment
For debt investment and other debt investment the Company shall calculate the expected
credit loss through the default exposure and the 12-month or lifetime expected credit loss rate
based on the nature of the investment counterparty and the type of risk exposure.(ii) Low credit risk
If the financial instrument has a low risk of default the borrower has a strong capacity to meet
its contractual cash flow obligations in the near term and adverse changes in economic and
business conditions in the longer term may but will not necessarily reduce the ability of the
borrower to fulfill its contractual cash flow obligations.(iii) Significant increase in credit risk
The Company shall assess whether the credit risk on a financial instrument has increased
significantly since initial recognition using the change in the risk of a default occurring over
the expected life of the financial instrument through the comparison of the risk of a default
occurring on the financial instrument as at the reporting date with the risk of a default
occurring on the financial instrument as at the date of initial recognition.To make that assessment the Company shall consider reasonable and supportable information
that is available without undue cost or effort and that is indicative of significant increases in
credit risk since initial recognition including forward-looking information. The information
considered by the Company are as following:
* Significant changes in internal price indicators of credit risk as a result of a change in
credit risk since inception
* Existing or forecast adverse change in the business financial or economic conditions of
the borrower that results in a significant change in the borrower’s ability to meet its debt
obligations；
* An actual or expected significant change in the operating results of the borrower; An
actual or expected significant adverse change in the regulatory economic or technological
environment of the borrower；
* Significant changes in the value of the collateral supporting the obligation or in the
quality of third-party guarantees or credit enhancements which are expected to reduce the
borrower’s economic incentive to make scheduled contractual payments or to otherwise
influence the probability of a default occurring;
21FIYTA Precision Technology Co. Ltd. Notes to the financial statements
* Significant change that are expected to reduce the borrower’s economic incentive to make
scheduled contractual payments;
* Expected changes in the loan documentation including an expected breach of contract
that may lead to covenant waivers or amendments interest payment holidays interest rate
step-ups requiring additional collateral or guarantees or other changes to the contractual
framework of the instrument；
* Significant changes in the expected performance and behavior of the borrower；
* Contractual payments are more than 30 days past due.Depending on the nature of the financial instruments the Company shall assess whether the
credit risk has increased significantly since initial recognition on an individual financial
instrument or a group of financial instruments. When assessed based on a group of financial
instruments the Company can group financial instruments on the basis of shared credit risk
characteristics for example past due information and credit risk rating.Generally the Company shall determine the credit risk on a financial asset has increased
significantly since initial recognition when contractual payments are more than 30 days past
due. The Company can only rebut this presumption if the Company has reasonable and
supportable information that is available without undue cost or effort that demonstrates that
the credit risk has not increased significantly since initial recognition even though the
contractual payments are more than 30 days past due.(iv) Credit-impaired financial asset
The Company shall assess at each reporting date whether the credit impairment has occurred
for financial asset at amortised cost and debt investment at fair value through other
comprehensive income. A financial asset is credit-impaired when one or more events that
have a detrimental impact on the estimated future cash flows of that financial asset have
occurred. Evidences that a financial asset is credit-impaired include observable data about the
following events:
Significant financial difficulty of the issuer or the borrower；a breach of contract such as a
default or past due event; the lender(s) of the borrower for economic or contractual reasons
relating to the borrower’s financial difficulty having granted to the borrower a concession(s)
that the lender(s) would not otherwise consider； it is becoming probable that the borrower
will enter bankruptcy or other financial reorganisation;the disappearance of an active market
for that financial asset because of financial difficulties； the purchase or origination of a
financial asset at a deep discount that reflects the incurred credit losses.(v) Presentation of impairment of expected credit loss
In order to reflect the changes of credit risk of financial instrument since initial recognition
the Company shall at each reporting date remeasure the expected credit loss and recognise in
profit or loss as an impairment gain or loss the amount of expected credit losses addition (or
reversal). For financial asset at amortised cost the loss allowance shall reduce the carrying
22FIYTA Precision Technology Co. Ltd. Notes to the financial statements
amount of the financial asset in the statement of financial position; for debt investment at fair
value through other comprehensive income the loss allowance shall be recognised in other
comprehensive income and shall not reduce the carrying amount of the financial asset in the
statement of financial position.(vi) Write-off
The Company shall directly reduce the gross carrying amount of a financial asset when the
Company has no reasonable expectations of recovering the contractual cash flow of a
financial asset in its entirety or a portion thereof. Such write-off constitutes a derecognition of
the financial asset. This circumstance usually occurs when the Company determines that the
debtor has no assets or sources of income that could generate sufficient cash flow to repay the
write-off amount.Recovery of financial asset written off shall be recognised in profit or loss as reversal of
impairment loss.(f) Transfer of financial assets
Transfer of financial assets refers to following two situations:
* Transfers the contractual rights to receive the cash flows of the financial asset;
* Transfers the entire or a part of a financial asset and retains the contractual rights to
receive the cash flows of the financial asset but assumes a contractual obligation to pay the
cash flows to one or more recipients.(i) Derecognition of transferred assets
If the Company transfers substantially all the risks and rewards of ownership of the financial
asset or neither transfers nor retains substantially all the risks and rewards of ownership of the
financial asset but has not retained control of the financial asset the financial asset shall be
derecognised.Whether the Company has retained control of the transferred asset depends on the transferee’s
ability to sell the asset. If the transferee has the practical ability to sell the asset in its entirety
to an unrelated third party and is able to exercise that ability unilaterally and without needing
to impose additional restrictions on the transfer the Company has not retained control.The Company judges whether the transfer of financial asset qualifies for derecognition based
on the substance of the transfer.If the transfer of financial asset qualifies for derecognition in its entirety the difference
between the following shall be recognised in profit or loss:
* The carrying amount of transferred financial asset;
* The sum of consideration received and the part derecognised of the cumulative changes
in fair value previously recognised in other comprehensive income (The financial assets
involved in the transfer are classified as financial assets at fair value through other
comprehensive income in accordance with Article 18 of the Accounting Standards for
23FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Business Enterprises - Recognition and Measurement of Financial Instruments).If the transferred asset is a part of a larger financial asset and the part transferred qualifies for
derecognition the previous carrying amount of the larger financial asset shall be allocated
between the part that continues to be recognised (For this purpose a retained servicing asset
shall be treated as a part that continues to be recognised) and the part that is derecognised
based on the relative fair values of those parts on the date of the transfer. The difference
between following two amounts shall be recognised in profit or loss:
* The carrying amount (measured at the date of derecognition) allocated to the part
derecognised；
* The sum of the consideration received for the part derecognised and part derecognised of
the cumulative changes in fair value previously recognised in other comprehensive income
(The financial assets involved in the transfer are classified as financial assets at fair value
through other comprehensive income in accordance with Article 18 of the Accounting
Standards for Business Enterprises - Recognition and Measurement of Financial Instruments).(ii) Continuing involvement in transferred assets
If the Company neither transfers nor retains substantially all the risks and rewards of
ownership of a transferred asset and retains control of the transferred asset the Company
shall continue to recognise the transferred asset to the extent of its continuing involvement
and also recognise an associated liability.The extent of the Company’s continuing involvement in the transferred asset is the extent to
which it is exposed to changes in the value of the transferred asset
(iii) Continue to recognise the transferred assets
If the Company retains substantially all the risks and rewards of ownership of the transferred
financial asset the Company shall continue to recognise the transferred asset in its entirety
and the consideration received shall be recognised as a financial liability.The financial asset and the associated financial liability shall not be offset. In subsequent
accounting period the Company shall continuously recognise any income (gain) arising from
the transferred asset and any expense (loss) incurred on the associated liability.(g) Offsetting financial assets and financial liabilities
Financial assets and financial liabilities shall be presented separately in the statement of
financial position and shall not be offset. When meets the following conditions financial
assets and financial liabilities shall be offset and the net amount presented in the statement of
financial position:
The Company currently has a legally enforceable right to set off the recognised amounts; The
Company intends either to settle on a net basis or to realise the asset and settle the liability
simultaneously.In accounting for a transfer of a financial asset that does not qualify for derecognition the
24FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Company shall not offset the transferred asset and the associated liability.(h) Determination of fair value of financial instruments
Determination of fair value of financial assets and financial liabilities please refer to Note
3.12
3.12 Fair Value Measurement
Fair value refers to the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date.The Company determines fair value of the related assets and liabilities based on market value
in the principal market or in the absence of a principal market in the most advantageous
market price for the related asset or liability. The fair value of an asset or a liability is
measured using the assumptions that market participants would use when pricing the asset or
liability assuming that market participants act in their economic best interest.The principal market is the market in which transactions for an asset or liability take place
with the greatest volume and frequency. The most advantageous market is the market which
maximizes the value that could be received from selling the asset and minimizes the value
which is needed to be paid in order to transfer a liability considering the effect of transport
costs and transaction costs both.If the active market of the financial asset or financial liability exists the Company shall
measure the fair value using the quoted price in the active market. If the active market of the
financial instrument is not available the Company shall measure the fair value using valuation
techniques.A fair value measurement of a non-financial asset takes into account a market participant’s
ability to generate economic benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset in its highest and best use.* Valuation techniques
The Company uses valuation techniques that are appropriate in the circumstances and for
which sufficient data are available to measure fair value including the market approach the
income approach and the cost approach. The Company shall use valuation techniques
consistent with one or more of those approaches to measure fair value. If multiple valuation
techniques are used to measure fair value the results shall be evaluated considering the
reasonableness of the range of values indicated by those results. A fair value measurement is
the point within that range that is most representative of fair value in the circumstances.When using the valuation technique the Company shall give the priority to relevant
observable inputs. The unobservable inputs can only be used when relevant observable inputs
is not available or practically would not be obtained. Observable inputs refer to the
information which is available from market and reflects the assumptions that market
participants would use when pricing the asset or liability. Unobservable Inputs refer to the
information which is not available from market and it has to be developed using the best
25FIYTA Precision Technology Co. Ltd. Notes to the financial statements
information available in the circumstances from the assumptions that market participants
would use when pricing the asset or liability.* Fair value hierarchy
To Company establishes a fair value hierarchy that categorises into three levels the inputs to
valuation techniques used to measure fair value. The fair value hierarchy gives the highest
priority to Level 1 inputs and second to the Level 2 inputs and the lowest priority to Level 3
inputs. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities that the entity can access at the measurement date. Level 2 inputs are inputs other
than quoted prices included within Level 1 that are observable for the asset or liability either
directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability.
3.13 Inventories
(a) Classification of inventories
Inventories are finished goods or products held for sale in the ordinary course of business in
the process of production for such sale or in the form of materials or supplies to be consumed
in the production process or in the rendering of services including raw materials work in
progress and goods in stock etc.(b) Measurement method of cost of inventories sold or used
The cost of raw materials and goods in stock (except the branded luxury watch inventory)
used or sold is determined on the weighted average basis while the cost of the branded luxury
watch inventory used or sold is determined on individual valuation method basis.(c) Inventory system
The perpetual inventory system is adopted. The inventories should be counted at least once a
year and surplus or losses of inventory stocktaking shall be included in current profit and loss.(d) Recognition Criteria and Provision for impairment of inventory
Inventories are stated at the lower of cost and net realizable value. The excess of cost over net
realizable value of the inventories is recognised as provision for impairment of inventory and
recognised in current profit or loss.Net realizable value of the inventory should be determined on the basis of reliable evidence
obtained and factors such as purpose of holding the inventory and impact of post balance
sheet event shall be considered.(i) In normal operation process finished goods products and materials for direct sale their
net realizable values are determined at estimated selling prices less estimated selling expenses
and relevant taxes and surcharges; for inventories held to execute sales contract or service
contract their net realizable values are calculated on the basis of contract price. If the
quantities of inventories specified in sales contracts are less than the quantities held by the
Company the net realizable value of the excess portion of inventories shall be based on
general selling prices. Net realizable value of materials held for sale shall be measured based
on market price.
26FIYTA Precision Technology Co. Ltd. Notes to the financial statements
(ii) For materials in stock need to be processed in the ordinary course of production and
business net realisable value is determined at the estimated selling price less the estimated
costs of completion the estimated selling expenses and relevant taxes. If the net realisable
value of the finished products produced by such materials is higher than the cost the materials
shall be measured at cost; if a decline in the price of materials indicates that the cost of the
finished products exceeds its net realisable value the materials are measured at net realisable
value and differences shall be recognised at the provision for impairment.(iii) Provisions for inventory impairment are generally determined on an individual basis. For
inventories with large quantity and low unit price the provisions for inventory impairment are
determined on group basis.(iv) If any factor rendering write-downs of the inventories has been eliminated at the reporting
date the amounts written down are recovered and reversed to the extent of the inventory
impairment which has been provided for. The reversal shall be included in profit or loss.
3.14 Contract Assets and Contract Liabilities
The Company shall present contract assets or contract liabilities in the statement of financial
position depending on the relationship between the Company’s satisfying a performance
obligation and the customer’s payment. A contract asset shall be presented if the Company
has the right to consideration in exchange for goods or services that the Company has
transferred to a customer when that right is conditioned on something other than the passage
of time. A contract liability shall be presented if the Company has the obligation to transfer
goods or services to a customer for which the Company has received consideration (or the
amount is due) from the customer.Method of determination and accounting for expected credit loss for contract assets please
refer to Note 3.11.Contract assets and contract liabilities shall be presented separately in the statement of
financial position. The contract asset and contract liability for the same contract shall be
presented on a net basis. A net balance shall be listed in the item of "Contract assets" or
"Other non-current assets" according to its liquidity; a credit balance shall be listed in the item
of "Contract liabilities" or "Other non-current liabilities" according to its liquidity. Contract
assets and contract liabilities for different contracts cannot be offset.
3.15 Contract costs
Contract costs include costs to fulfill a contract and the costs to obtain a contract.The Company shall recognise an asset from the costs incurred to fulfill a contract only if those
costs meet all of the following criteria:
(i) the costs relate directly to a contract or to an anticipated contract including: direct labour
direct materials manufacturing costs (or similar costs) costs that are explicitly chargeable to
the customer under the contract and other costs that are incurred only because an entity
entered into the contract;
27FIYTA Precision Technology Co. Ltd. Notes to the financial statements
(ii) the costs enhance resources of the Company that will be used in satisfying performance
obligations in the future; and
(iii) the costs are expected to be recovered.The incremental costs of obtaining a contract shall be recognised as an asset if the Company
expects to recover them.An asset related to contract costs shall be amortised on a systematic basis that is consistent
with the revenue recognition of the goods or services to which the asset relates. The Company
recognises the contract acquisition costs as an expense when incurred if the amortisation
period of the asset that the Company otherwise would have recognised is one year or less.The Company shall accrue the provision for impairment recognise an impairment loss in
profit or loss to the extent that the carrying amount of an asset related to the contract cost
exceeds the difference of below two items and further consider whether the estimated
liability related to the onerous contract needs to be accrued:
(i) the remaining amount of consideration that the Company expects to receive in exchange
for the goods or services to which the asset relates; less
(ii) the costs that relate directly to providing those goods or services and that have not been
recognised as expenses.The Company shall recognise in profit or loss a reversal of some or all of an impairment loss
previously recognised when the impairment conditions no longer exist or have improved. The
increased carrying amount of the asset shall not exceed the amount that would have been
determined (net of amortisation) if no impairment loss had been recognised previously.Providing that the costs to fulfil a contract satisfy the requirement to be recognised as an asset
the Company shall present them in the account “Inventory” if the contract has an originalexpected duration of one year (or a normal operating cycle) or less or in the account “Othernon-current assets” if the contract has an original expected duration of more than one year (or
a normal operating cycle).Providing that the costs to obtain a contract satisfy the requirement to be recgonised as an
asset the Company shall present them in the account “Other current asset” if the contract has
an original expected duration of one year (or a normal operating cycle) or less or in the
account “Other non-current assets” if the contract has an original expected duration of more
than one year (or a normal operating cycle).
3.16 Long-term Equity Investments
Long-term equity investments refer to equity investments where an investor has control of or
significant influence over an investee as well as equity investments in joint ventures.Associates of the Company are those entities over which the Company has significant
influence.(a) Determination basis of joint control or significant influence over the investee
Joint control is the relevant agreed sharing of control over an arrangement and the arranged
28FIYTA Precision Technology Co. Ltd. Notes to the financial statements
relevant activity must be decided under unanimous consent of the parties sharing control. In
assessing whether the Company has joint control of an arrangement the Company shall assess
first whether all the parties or a group of the parties control the arrangement. When all the
parties or a group of the parties considered collectively are able to direct the activities of the
arrangement the parties control the arrangement collectively. Then the Company shall assess
whether decisions about the relevant activities require the unanimous consent of the parties
that collectively control the arrangement. If two or more groups of the parties could control
the arrangement collectively it shall not be assessed as have joint control of the arrangement.When assessing the joint control the protective rights are not considered.Significant influence is the power to participate in the financial and operating policy decisions
of the investee but is not control or joint control of those policies. In determination of
significant influence over an investee the Company should consider not only the existing
voting rights directly or indirectly held but also the effect of potential voting rights held by the
Company and other entities that could be currently exercised or converted including the
effect of share warrants share options and convertible corporate bonds that issued by the
investee and could be converted in current period.If the Company holds directly or indirectly 20% or more but less than 50% of the voting
power of the investee it is presumed that the Company has significant influence of the
investee unless it can be clearly demonstrated that in such circumstance the Company cannot
participate in the decision-making in the production and operating of the investee.(b) Determination of initial investment cost
(i) Long-term equity investments generated in business combinations
For a business combination involving enterprises under common control if the Company
makes payment in cash transfers non-cash assets or bears liabilities as the consideration for
the business combination the share of carrying amount of the owners’ equity of the acquiree
in the consolidated financial statements of the ultimate controlling party is recognised as the
initial cost of the long-term equity investment on the combination date. The difference
between the initial investment cost and the carrying amount of cash paid non-cash assets
transferred and liabilities assumed shall be adjusted against the capital reserve; if capital
reserve is not enough to be offset undistributed profit shall be offset in turn.For a business combination involving enterprises under common control if the Company
issues equity securities as the consideration for the business combination the share of
carrying amount of the owners’ equity of the acquiree in the consolidated financial statements
of the ultimate controlling party is recognised as the initial cost of the long-term equity
investment on the combination date. The total par value of the shares issued is recognised as
the share capital. The difference between the initial investment cost and the carrying amount
of the total par value of the shares issued shall be adjusted against the capital reserve; if
capital reserve is not enough to be offset undistributed profit shall be offset in turn.For business combination not under common control the assets paid liabilities incurred or
assumed and the fair value of equity securities issued to obtain the control of the acquiree at
29FIYTA Precision Technology Co. Ltd. Notes to the financial statements
the acquisition date shall be determined as the cost of the business combination and
recognised as the initial cost of the long-term equity investment. The audit legal valuation
and advisory fees other intermediary fees and other relevant general administrative costs
incurred for the business combination shall be recognised in profit or loss as incurred.(ii) Long-term equity investments acquired not through the business combination the
investment cost shall be determined based on the following requirements:
For long-term equity investments acquired by payments in cash the initial cost is the actually
paid purchase cost including the expenses taxes and other necessary expenditures directly
related to the acquisition of long-term equity investments.For long-term equity investments acquired through issuance of equity securities the initial
cost is the fair value of the issued equity securities.For the long-term equity investments obtained through exchange of non-monetary assets if
the exchange has commercial substance and the fair values of assets traded out and traded in
can be measured reliably the initial cost of long-term equity investment traded in with non-
monetary assets are determined based on the fair values of the assets traded out together with
relevant taxes. Difference between fair value and book value of the assets traded out is
recorded in current profit or loss. If the exchange of non-monetary assets does not meet the
above criterion the book value of the assets traded out and relevant taxes are recognised as
the initial investment cost.For long-term equity investment acquired through debt restructuring the initial cost is
determined based on the fair value of the equity obtained and the difference between initial
investment cost and carrying amount of debts shall be recorded in current profit or loss.(c) Subsequent measurement and recognition of profit or loss
Long-term equity investment to an entity over which the Company has ability of control shall
be accounted for at cost method. Long-term equity investment to a joint venture or an
associate shall be accounted for at equity method.(i) Cost method
For Long-term equity investment at cost method cost of the long-term equity investment shall
be adjusted when additional amount is invested or a part of it is withdrawn. The Company
recognises its share of cash dividends or profits which have been declared to distribute by the
investee as current investment income.(ii) Equity method
If the initial cost of the investment is in excess of the share of the fair value of the net
identifiable assets in the investee at the date of investment the difference shall not be adjusted
to the initial cost of long-term equity investment; if the initial cost of the investment is in
short of the share of the fair value of the net identifiable assets in the investee at the date
investment the difference shall be included in the current profit or loss and the initial cost of
the long-term equity investment shall be adjusted accordingly.
30FIYTA Precision Technology Co. Ltd. Notes to the financial statements
The Company recognises the share of the investee’s net profits or losses as well as its share
of the investee’s other comprehensive income as investment income or losses and other
comprehensive income respectively and adjusts the carrying amount of the investment
accordingly. The carrying amount of the investment shall be reduced by the share of any
profit or cash dividends declared to distribute by the investee. The investor’s share of the
investee’s owners’ equity changes other than those arising from the investee’s net profit or
loss other comprehensive income or profit distribution shall be recognised in the investor’s
equity and the carrying amount of the long-term equity investment shall be adjusted
accordingly. The Company recognises its share of the investee’s net profits or losses after
making appropriate adjustments of investee’s net profit based on the fair values of the
investee’s identifiable net assets at the investment date. If the accounting policy and
accounting period adopted by the investee is not in consistency with the Company the
financial statements of the investee shall be adjusted according to the Company’s accounting
policies and accounting period based on which investment income or loss and other
comprehensive income etc. shall be adjusted. The unrealized profits or losses resulting from
inter-company transactions between the company and its associate or joint venture are
eliminated in proportion to the company’s equity interest in the investee based on which
investment income or losses shall be recognised. Any losses resulting from inter-company
transactions between the investor and the investee which belong to asset impairment shall be
recognised in full.Where the Company obtains the power of joint control or significant influence but not
control over the investee due to additional investment or other reason the relevant long-term
equity investment shall be accounted for by using the equity method initial cost of which
shall be the fair value of the original investment plus the additional investment. Where the
original investment is classified as other equity investment difference between its fair value
and the carrying value in addition to the cumulative changes in fair value previously recorded
in other comprehensive income shall be recogised into retained earnings of the period of
using equity method.If the Company loses the joint control or significant influence of the investee for some reasons
such as disposal of equity investment the retained interest shall be measured at fair value and
the difference between the carrying amount and the fair value at the date of loss the joint
control or significant influence shall be recognised in profit or loss. When the Company
discontinues the use of the equity method the Company shall account for all amounts
previously recognised in other comprehensive income under equity method in relation to that
investment on the same basis as would have been required if the investee had directly
disposed of the related assets or liabilities.(d) Impairment testing and provision for impairment loss
For investment in subsidiaries associates or a joint ventures provision for impairment loss
please refer to Note 3.22.
3.17 Investment Properties
31FIYTA Precision Technology Co. Ltd. Notes to the financial statements
(a) Classification of investment properties
Investment properties are properties to earn rentals or for capital appreciation or both
including:
(i)Land use right leased out
(ii)Land held for transfer upon appreciation
(iii)Buildings leased out
(b) The measurement model of investment property
The Company adopts the cost model for subsequent measurement of investment properties.For provision for impairment please refer to Note 3.22.The Company calculates the depreciation or amortization based on the net amount of
investment property cost less the accumulated impairment and the net residual value using
straight-line method. The estimated useful life and annual depreciation rates which are
determined according to the categories estimated economic useful lives and estimated net
residual rates are listed as followings:
Category Estimated useful Residual rates (%) Annual depreciation rates
life (year) (%)
Buildings and constructions 20-35 5.00 2.71-4.85
3.18 Fixed Assets
Fixed assets refer to the tangible assets with higher unit price held for the purpose of
producing commodities rendering services renting or business management with useful lives
exceeding one year.(a) Recognition criteria of fixed assets
Fixed assets will only be recognised at the actual cost paid when obtaining as all the following
criteria are satisfied:
(i) It is probable that the economic benefits relating to the fixed assets will flow into the
Company;
(ii) The costs of the fixed assets can be measured reliably.Subsequent expenditure for fixed assets shall be recorded in cost of fixed assets if recognition
criteria of fixed assets are satisfied otherwise the expenditure shall be recorded in current
profit or loss when incurred.(b) Depreciation methods of fixed assets
The Company begins to depreciate the fixed asset from the next month after it is available for
intended use using the straight-line-method. The estimated useful life and annual depreciation
rates which are determined according to the categories estimated economic useful lives and
estimated net residual rates of fixed assets are listed as followings:
32FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Depreciation Estimated useful Residual rates Annual depreciation
Category
method life (year) (%) rates (%)
Buildings and straight-line- 20-35 5.00 2.71-4.85
constructions method
straight-line-
Machinery equipment method 10 5.00-10.00 9.00-9.50
Electrical equipment straight-line- 5 5.00 19.00
method
straight-line-
Vehicles 5 5.00 19.00
method
Other equipment straight-line- 5 5.00 19.00
method
For the fixed assets with impairment provided the impairment provision should be excluded
from the cost when calculating depreciation.At the end of reporting period the Company shall review the useful life estimated net
residual value and depreciation method of the fixed assets. Estimated useful life of the fixed
assets shall be adjusted if it is changed compared to the original estimation.
3.19 Construction in Progress
(a) Classification of construction in progress
Construction in progress is measured on an individual project basis.(b) Recognition criteria and timing of transfer from construction in progress to fixed
assets
The initial book values of the fixed assets are stated at total expenditures incurred before they
are ready for their intended use including construction costs original price of machinery
equipment other necessary expenses incurred to bring the construction in progress to get
ready for its intended use and borrowing costs of the specific loan for the construction or the
proportion of the general loan used for the constructions incurred before they are ready for
their intended use. The construction in progress shall be transferred to fixed asset when the
installation or construction is ready for the intended use. For construction in progress that has
been ready for their intended use but relevant budgets for the completion of projects have not
been completed the estimated values of project budgets prices or actual costs should be
included in the costs of relevant fixed assets and depreciation should be provided according
to relevant policies of the Company when the fixed assets are ready for intended use. After the
completion of budgets needed for the completion of projects the estimated values should be
substituted by actual costs but depreciation already provided is not adjusted.
3.20 Borrowing Costs
33FIYTA Precision Technology Co. Ltd. Notes to the financial statements
(a) Recognition criteria and period for capitalization of borrowing costs
The Company shall capitalize the borrowing costs that are directly attributable to the
acquisition construction or production of qualifying assets when meet the following
conditions:
(i) Expenditures for the asset are being incurred;
(ii) Borrowing costs are being incurred and;
(iii) Acquisition construction or production activities that are necessary to prepare the assets
for their intended use or sale are in progress.Other borrowing cost discounts or premiums on borrowings and exchange differences on
foreign currency borrowings shall be recognized into current profit or loss when incurred.Capitalization of borrowing costs is suspended during periods in which the acquisition
construction or production of a qualifying asset is interrupted abnormally and the interruption
is for a continuous period of more than 3 months.Capitalization of such borrowing costs ceases when the qualifying assets being acquired
constructed or produced become ready for their intended use or sale. The expenditure incurred
subsequently shall be recognised as expenses when incurred.(b) Capitalization rate and measurement of capitalized amounts of borrowing costs
When funds are borrowed specifically for purchase construction or manufacturing of assets
eligible for capitalization the Company shall determine the amount of borrowing costs
eligible for capitalisation as the actual borrowing costs incurred on that borrowing during the
period less any interest income on bank deposit or investment income on the temporary
investment of those borrowings.Where funds allocated for purchase construction or manufacturing of assets eligible for
capitalization are part of a general borrowing the eligible amounts are determined by the
weighted-average of the cumulative capital expenditures in excess of the specific borrowing
multiplied by the general borrowing capitalization rate. The capitalisation rate will be the
weighted average of the borrowing costs applicable to the general borrowing.
3.21 Intangible Assets
(a) Measurement method of intangible assets
Intangible assets are recognised at actual cost at acquisition.(b) The useful life and amortisation of intangible assets
(i) The estimated useful lives of the intangible assets with finite useful lives are as follows:
Category Estimated useful Basis
life
Land use right 50years Legal life
34FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Estimated useful
Category Basis
life
The service life is determined by reference to the
Software 5 years period that can bring economic benefits to the
Company
The service life is determined by reference to the
Right to use the trademark 5-10 years period that can bring economic benefits to the
Company
For intangible assets with finite useful life the estimated useful life and amortisation method
are reviewed annually at the end of each reporting period and adjusted when necessary. No
change has incurred in current year in the estimated useful life and amortisation method upon
review.(ii) Assets of which the period to bring economic benefits to the Company are unforeseeable
are regarded as intangible assets with indefinite useful lives. The Company reassesses the
useful lives of those assets at every year end. If the useful lives of those assets are still
indefinite impairment test should be performed on those assets at the balance sheet date.(iii) Amortisation of the intangible assets
For intangible assets with finite useful lives their useful lives should be determined upon
their acquisition and systematically amortised on a straight-line basis [units of production
method] over the useful life. The amortisation amount shall be recognised into current profit
or loss according to the beneficial items. The amount to be amortised is cost deducting
residual value. For intangible assets which has impaired the cumulative impairment provision
shall be deducted as well. The residual value of an intangible asset with a finite useful life
shall be assumed to be zero unless: there is a commitment by a third party to purchase the
asset at the end of its useful life; or there is an active market for the asset and residual value
can be determined by reference to that market; and it is probable that such a market will exist
at the end of the asset’s useful life.Intangible assets with indefinite useful lives shall not be amortised. The Company reassesses
the useful lives of those assets at every year end. If there is evidence to indicate that the useful
lives of those assets become finite the useful lives shall be estimated and the intangible assets
shall be amortised systematically and reasonably within the estimated useful lives.(c) Scope of Research and Development Expenditures
The Company classifies the expenses directly related to research and development activities
as research and development expenditures including remuneration of research and
development staff direct material depreciation cost and long-term amortised expense design
fee equipment commissioning fee intangible assets amortisation cost outsourcing research
and development cost and other expenses etc.(d) Criteria of classifying expenditures on internal research and development projects
35FIYTA Precision Technology Co. Ltd. Notes to the financial statements
into research phase and development phase
Preparation activities related to materials and other relevant aspects undertaken by the
Company for the purpose of further development shall be treated as research phase.Expenditures incurred during the research phase of internal research and development projects
shall be recognised in profit or loss when incurred.Development activities after the research phase of the Company shall be treated as
development phase.(e) Criteria for capitalization of qualifying expenditures during the development phase
Expenditures arising from development phase on internal research and development projects
shall be recognised as intangible assets only if all of the following conditions have been met:
(i) Technical feasibility of completing the intangible assets so that they will be available for
use or sale;
(ii) Its intention to complete the intangible asset and use or sell it;
(iii) The method that the intangible assets generate economic benefits including the Company
can demonstrate the existence of a market for the output of the intangible assets or the
intangible assets themselves or if it is to be used internally the usefulness of the intangible
assets;
(iv) The availability of adequate technical financial and other resources to complete the
development and to use or sell the intangible asset; and
(v) Its ability to measure reliably the expenditure attributable to the intangible asset.
3.22 Impairment of Long-Term Assets
Impairment loss of long-term equity investment in subsidiaries associates and joint ventures
investment properties subsequently measured at cost fixed assets constructions in progress
intangible assets and right of use assets shall be determined according to following method:
The Company shall assess at the end of each reporting period whether there is any indication
that an asset may be impaired. If any such indication exists the Company shall estimate the
recoverable amount of the asset and test for impairment. Irrespective of whether there is any
indication of impairment the Company shall test for impairment of goodwill acquired in a
business combination intangible assets with an indefinite useful life or intangible assets not
yet available for use annually.The recoverable amounts of the long-term assets are the higher of their fair values less costs
to dispose and the present values of the estimated future cash flows of the long-term assets.The Company estimate the recoverable amounts on an individual basis. If it is difficult to
estimate the recoverable amount of the individual asset the Company estimates the
recoverable amount of the groups of assets that the individual asset belongs to. Identification
of a group of asset is based on whether the cash inflows from it are largely independent of the
cash inflows from other assets or groups of assets.
36FIYTA Precision Technology Co. Ltd. Notes to the financial statements
If and only if the recoverable amount of an asset or a group of assets is less than its carrying
amount the carrying amount of the asset shall be reduced to its recoverable amount and the
provision for impairment loss shall be recognised accordingly.When test for impairment if there is an indication that relevant group of assets or
combination of asset groups may be impaired impairment testing for group of assets or
combination of asset groups excluding goodwill shall be conducted first and the recoverable
amount shall be then calculated and the impairment loss shall be recognised accordingly.Then the group of assets or combination of asset groups including goodwill shall be tested for
impairment by comparing the carrying amount with its recoverable amount. If the
recoverable amount is less than the carrying amount the Company shall recognise the
impairment loss.The mentioned impairment loss will not be reversed in subsequent accounting period once it
had been recognised.
3.23 Long-term Deferred Expenses
Long-term deferred expenses are various expenses already incurred which shall be amortised
over current and subsequent periods with the amortisation period exceeding one year.Long-term deferred expenses are evenly amortised over the beneficial period and the
amortised period for each expense are as following:
Item Amortisation period
Counter fabrication expenses 2-3 years
Decoration expenses 3-5 years
Others 2-3 years
3.24 Employee Benefits
Employee benefits refer to all forms of consideration or compensation given by the Company
in exchange for service rendered by employees or for the termination of employment
relationship. Employee benefits include short-term employee benefits post-employment
benefits termination benefits and other long-term employee benefits. Benefits provided to an
employee's spouse children dependents family members of decreased employees or other
beneficiaries are also employee benefits.According to liquidity employee benefits are presented in the statement of financial position
as “Employee benefits payable” and “Long-term employee benefits payable”.(a) Short-term employee benefits
(i) Employee basic salary (salary bonus allowance subsidy)
The Company recognises in the accounting period in which an employee provides service
actually occurred short-term employee benefits as a liability with a corresponding charge to
current profit except for those recognised as capital expenditure based on the requirement of
37FIYTA Precision Technology Co. Ltd. Notes to the financial statements
accounting standards.(ii) Employee welfare
The Company shall recognise the employee welfare based on actual amount when incurred
into current profit or loss or related capital expenditure. Employee welfare shall be measured
at fair value as it is a non-monetary benefits.(iii) Social insurance such as medical insurance work injury insurance and maternity
insurance housing funds labor union fund and employee education fund
Payments made by the Company of social insurance for employees such as medical insurance
work injury insurance and maternity insurance payments of housing funds and labor union
fund and employee education fund accrued in accordance with relevant requirements in the
accounting period in which employees provide services is calculated according to required
accrual bases and accrual ratio in determining the amount of employee benefits and the
related liabilities which shall be recognised in current profit or loss or the cost of relevant
asset.(iv) Short-term paid absences
The company shall recognise the related employee benefits arising from accumulating paid
absences when the employees render service that increases their entitlement to future paid
absences. The additional payable amounts shall be measured at the expected additional
payments as a result of the unused entitlement that has accumulated. The Company shall
recognise relevant employee benefit of non-accumulating paid absences when the absences
actually occurred.(v)Short-term profit-sharing plan
The Company shall recognise the related employee benefits payable under a profit-sharing
plan when all of the following conditions are satisfied:
* The Company has a present legal or constructive obligation to make such payments as a
result of past events; and
* A reliable estimate of the amounts of employee benefits obligation arising from the
profit- sharing plan can be made.(b) Post-employment benefits
(i) Defined contribution plans
The Company shall recognise in the accounting period in which an employee provides
service the contribution payable to a defined contribution plan as a liability with a
corresponding charge to the current profit or loss or the cost of a relevant asset.When contributions to a defined contribution plan are not expected to be settled wholly before
twelve months after the end of the annual reporting period in which the employees render the
related service they shall be discounted using relevant discount rate (market yields at the end
of the reporting period on high quality corporate bonds in active market or government bonds
38FIYTA Precision Technology Co. Ltd. Notes to the financial statements
with the currency and term which shall be consistent with the currency and estimated term of
the defined contribution obligations) to measure employee benefits payable.(ii) Defined benefit plan
The present value of defined benefit obligation and current service costs
Based on the expected accumulative welfare unit method the Company shall make estimates
about demographic variables and financial variables in adopting the unbiased and consistent
actuarial assumptions and measure defined benefit obligation and determine the obligation
period. The Company shall discount the obligation arising from defined benefit plan using
relevant discount rate (market yields at the end of the reporting period on high quality
corporate bonds in active market or government bonds with the currency and term which shall
be consistent with the currency and estimated term of the defined benefit obligations) in order
to determine the present value of the defined benefit obligation and the current service cost.The net defined benefit liability or asset
The net defined benefit liability (asset) is the deficit or surplus recognised as the present value
of the defined benefit obligation less the fair value of plan assets (if any).When the Company has a surplus in a defined benefit plan it shall measure the net defined
benefit asset at the lower of the surplus in the defined benefit plan and the asset ceiling.The amount recognised in the cost of asset or current profit or loss
Service cost comprises current service cost past service cost and any gain or loss on
settlement. Other service cost shall be recognised in profit or loss unless accounting standards
require or allow the inclusion of current service cost within the cost of assets.Net interest on the net defined benefit liability (asset) comprising interest income on plan
assets interest cost on the defined benefit obligation and interest on the effect of the asset
ceiling shall be included in profit or loss.The amount recognised in other comprehensive income
Changes in the net liability or asset of the defined benefit plan resulting from the
remeasurements including:
* Actuarial gains and losses the changes in the present value of the defined benefit
obligation resulting from experience adjustments or the effects of changes in actuarial
assumptions;
* Return on plan assets excluding amounts included in net interest on the net defined
benefit liability or asset;
* Any change in the effect of the asset ceiling excluding amounts included in net interest
on the net defined benefit liability (asset).Remeasurements of the net defined benefit liability (asset) recognised in other comprehensive
income shall not be reclassified to profit or loss in a subsequent period. However the
Company may transfer those amounts recognised in other comprehensive income within
39FIYTA Precision Technology Co. Ltd. Notes to the financial statements
equity.(c) Termination benefits
The Company providing termination benefits to employees shall recognise an employee
benefits liability for termination benefits with a corresponding charge to the profit or loss of
the reporting period at the earlier of the following dates:
(i) When the Company cannot unilaterally withdraw the offer of termination benefits
because of an employment termination plan or a curtailment proposal.(ii) When the Company recognises costs or expenses related to a restructuring that involves
the payment of termination benefits.If the termination benefits are not expected to be settled wholly before twelve months after the
end of the annual reporting period the Company shall discount the termination benefits using
relevant discount rate (market yields at the end of the reporting period on high quality
corporate bonds in active market or government bonds with the currency and term which shall
be consistent with the currency and estimated term of the defined benefit obligations) to
measure the employee benefits.(d) Other long-term employee benefits
(i) Meet the conditions of the defined contribution plan
When other long-term employee benefits provided by the Company to the employees satisfies
the conditions for classifying as a defined contribution plan all those benefits payable shall be
accounted for as employee benefits payable at their discounted value.(ii) Meet the conditions of the defined benefit plan
At the end of the reporting period the Company recognised the cost of employee benefit from
other long-term employee benefits as the following components:
* Service costs;
* Net interest cost for net liability or asset of other long-term employee benefits
* Changes resulting from the remeasurements of the net liability or asset of other long-term
employee benefits
In order to simplify the accounting treatment the net amount of above items shall be
recognised in profit or loss or relevant cost of assets.
3.25 Estimated Liabilities
(a) Recognition criteria of estimated liabilities
The Company recognises the estimated liabilities when obligations related to contingencies
satisfy all the following conditions:
(i) That obligation is a current obligation of the Company;
(ii) It is likely to cause any economic benefit to flow out of the Company as a result of
40FIYTA Precision Technology Co. Ltd. Notes to the financial statements
performance of the obligation; and
(iii) The amount of the obligation can be measured reliably.(b) Measurement method of estimated liabilities
The estimated liabilities of the Company are initially measured at the best estimate of
expenses required for the performance of relevant present obligations. The Company when
determining the best estimate has had a comprehensive consideration of risks with respect to
contingencies uncertainties and the time value of money. The carrying amount of the
estimated liabilities shall be reviewed at the end of every reporting period. If conclusive
evidences indicate that the carrying amount fails to be the best estimate of the estimated
liabilities the carrying amount shall be adjusted based on the updated best estimate.
3.26 Share-based Payments
(a) Classification of share-based payments
Share-based payments of the Company include equity-settled share-based payments and cash-
settled share-based payments.(b) Determining fair value of equity instruments
(i) The fair value of shares granted to the employees can be determined by reference to the
quotations in the active market adjusted in accordance with the terms and conditions granted
(excluding vesting conditions other than market conditions).(ii) For share option granted to the employees it is usually difficult to obtain its market price.If the share option with similar terms and conditions is not available the Company estimates
the fair value of those options using an applicable option pricing model.(c) Basis of best estimate of equity instruments expected to vest
Every balance sheet date during the vesting period the Company makes best estimate
according to the most updated number of employees that are eligible to exercise their options
and revises the number of equity instruments expected to vest in order to make the best
estimate of equity instruments expected to vest.(d) Accounting for implementation of share-based payment programs
Cash-settled share-based payment
(i) For cash-settled share-based payment vested immediately after granting the Company
shall recognise relevant costs or expenses at the fair value of the liability borne at grant date
and a corresponding increase in liability. Until the liability is settled the Company shall
remeasure the fair value of the liability at the end of each reporting period and at the date of
settlement with any changes in fair value recognised in profit or loss.(ii) If the share instrument do not vest until services during the vesting period are completed
or performance conditions are satisfied during the vesting period at the end of each reporting
period during the vesting period the Company shall recognise relevant costs or expenses and
the corresponding increase in liability for services received in the reporting period at the fair
41FIYTA Precision Technology Co. Ltd. Notes to the financial statements
value of the liability borne based on the best available estimate of the number expected to
vest.Equity-settled share-based payment
(i) For equity-settled share-based payment transaction in which services are received if the
equity instrument granted vest immediately the Company shall recognise relevant costs or
expenses at the fair value of the equity instruments at grant date and the corresponding
increase in capital reserve.(ii) If the equity instrument do not vest until services during the vesting period are completed
or performance conditions are satisfied at the end of each reporting period during the vesting
period the Company shall recognise relevant costs or expenses and the corresponding
increase in capital reserve for services received in the reporting period at the fair value of the
equity instruments at grant date based on the best available estimate of the number of equity
instruments expected to vest.(e) Accounting for modification of share-based payment programs
When the Company modifies terms and conditions of the share-based payment program if the
modification increases the fair value of the equity instruments granted the increased amount
should be recognised for service received accordingly; if the quantity granted of the equity
instruments is increased the increased amount should be recgonised for service received
accordingly as well. If the modification reduces the total fair value of the share-based
payment arrangement or the terms are changed in such a way that the arrangement is no
longer for the benefit of the employee the entity is still required to account for the services
received as consideration for the equity instruments granted as if that modification had not
occurred unless a part or all of the equity instruments are cancelled.(f) Accounting for termination of share-based payment programs
If a grant of equity instruments is cancelled or settled during the vesting period (other than a
grant cancelled by forfeiture when the vesting conditions are not satisfied) the Company shall:
(i) Account for the cancellation or settlement as an acceleration of vesting and therefore
recognise immediately the amount that otherwise would have been recognised for services
received over the remainder of the vesting period.(ii)Account for any payment made to the employee on the cancellation or settlement of the
grant as the repurchase of an equity interest and recognize any excess of the payment over the
fair value of the equity instruments measured at the repurchase date as an expense.If the Company repurchases vested equity instruments the payment made to the employee
shall be accounted for as a deduction from equity and recognize any excess of the payment
over the fair value of the equity instruments measured at the repurchase date shall be
recognised in current profit or loss.
3.27 Revenue
(a) General Principle
42FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Revenue is defined as the gross inflow of economic benefits arising in the course of the
ordinary activities of the Company when those inflows result in the increases in shareholders’
equity other than increases relating to contributions from shareholders.The Company shall recognise revenue when it satisfies a performance obligation in the
contract as the customer obtains control of a good or service. Control of a good or service
refers to the ability to direct the use of and obtain substantially all of the remaining economic
benefits from the good or service.When the contract has two or more obligation performances the Company shall allocate the
transaction price to each performance obligation in proportion to a relative stand-alone selling
price at contract inception of the promised good or service underlying each performance
obligation in the contract and recognize revenue based on the transaction price allocated to
each performance obligation.The transaction price is the amount of consideration to which the Company expects to be
entitled in exchange for transferring promised goods or services to a customer excluding
amounts collected on behalf of third parties. When determining the transaction price of the
contract if the contract includes a variable consideration the Company shall determine the
best estimate of the variable consideration based on the expected value or the most likely
amount and include in the transaction price only to the extent that it is highly probable that a
significant reversal in the amount of cumulative revenue recognised will not occur when the
uncertainty associated with the variable consideration is subsequently resolved. If the contract
contains a significant financing component the Company shall determine the transaction
price at an amount that reflects the price that a customer would have paid for the promised
goods or services if the customer had paid cash for those goods or services when (or as) they
transfer to the customer. The difference between the transaction price and the promised
consideration shall be amortised using the effective interest method within the contract period.The Company need not consider the effects of a significant financing component if the period
between when the Company transfers control of a good or service to a customer and when the
customer pays for that good or service will be one year or less.The Company satisfies a performance obligation over time if one of the following criteria is
met; otherwise a performance obligation is satisfied at a point in time:
(i) the customer simultaneously receives and consumes the benefits provided by the
Company’s performance as the Company performs;
(ii) the Company’s performance creates or enhances an asset (for example work in progress)
that the customer controls as the asset is created or enhanced;
(iii) the Company’s performance does not create an asset with an alternative use to the
Company and the Company has an enforceable right to payment for performance completed
to date.For each performance obligation satisfied over time the Company shall recognise revenue
over time by measuring the progress towards complete satisfaction of that performance
43FIYTA Precision Technology Co. Ltd. Notes to the financial statements
obligation unless those progress cannot be reasonably measured. The Company measures the
progress of a performance obligation for the service rendered using input methods (or output
methods). In some circumstances the Company cannot be able to reasonably measure the
progress of a performance obligation but the Company expects to recover the costs incurred
in satisfying the performance obligation. In those circumstances the Company shall recognise
revenue only to the extent of the costs incurred until such time that it can reasonably measure
the progress of the performance obligation.The Company shall recognise revenue at the point in which a customer obtains control of a
promised good or service if a performance obligation is satisfied at a point in time. To
determine the point in time at which a customer obtains control of a promised good or service
the Company shall consider indicators of the transfer of control which include but are not
limited to the followings:
(i) The Company has a present right to payment for the good or service – a customer is
presently obliged to pay for the good or service;
(ii) The Company has transferred legal title of an asset to a customer - the customer has legal
title to the asset;
(iii) The Company has transferred physical possession of an asset to a customer - the customer
has physical possession of the asset;
(iv) The Company has transferred the significant risks and rewards of ownership of the asset
to a customer - the customer has the significant risks and rewards of ownership of the asset;
(v) The customer has accepted the asset.Sale with a right of return
For sales with a right of return when the customer obtains the control of a product the
Company shall recognise revenue for the transferred products in the amount of consideration
to which the Company expects to be entitled and a refund liability at the amounts receivable
for which the Company does not expect to be entitled; meanwhile an asset shall be
recognised as receivables on the cost of return measured at the former carrying amount of the
product expected to be returned less any expected costs to recover those products (including
potential decreases in the value to the entity of returned products) and the net amount of the
former carrying amount of the product when transferred to the customer less above mentioned
cost shall be recorded into the cost of sales. At the end of each reporting period the Company
shall re-assess the expectations about the sales return and remeasure above mentioned assets
and liabilities.Warranties
In accordance with the contract the law or other requirements the Company provides a
warranty in connection with the sale of a product or construction of a project. For warranties
which provide a customer with assurance that the related product will function as the parties
intended because it complies with agreed-upon specifications the Company shall treat it in
accordance with " Accounting Standards for Business Enterprise No. 13-Contingencies". If a
44FIYTA Precision Technology Co. Ltd. Notes to the financial statements
warranty or a part of a warranty provides a customer with a service in addition to the
assurance that the product complies with agreed-upon specifications the Company shall treat
it as a performance obligation and allocate the transaction price to the warranty based on the
relative proportion to the stand-alone selling price of the product and the service and
recognise revenue when the customer obtains the control of the service. In assessing whether
a warranty provides a customer with a service in addition to the assurance that the product
complies with agreed-upon specifications the Company shall consider factors such as:
whether the warranty is required by law; the length of the warranty coverage period and the
nature of the tasks that the Company promises to perform.Principal versus agent considerations
The Company determines whether it is a principal or an agent of the transaction on the basis
of whether it has control over the goods or services before they are transferred to customers. If
the Company obtains the control of the specified goods or services from another party and
then transfers the goods or services to the customer the Company is therefore a principal and
recognises revenue in the gross amount of consideration to which it expects to be entitled in
exchange for the specified goods or services transferred. Otherwise the Company is an agent
and shall recognise revenue in the amount of any fee or commission to which it expects to be
entitled in exchange for arranging for the specified goods or services to be provided by
another party. The fee or commission might be the net amount of received or receivable
consideration that the Company retains after paying the other party the consideration received
in exchange for the goods or services to be provided by that party or determined based on the
specified commission amount or proportion.Consideration payable to a customer
The Company shall account for consideration payable to a customer as a reduction of the
transaction price unless the payment to the customer is in exchange for a distinct good or
service that the customer transfers to the Company. The reduction of revenue shall be
recognised when (or as) the later of either of the following events occurs: the Company
recognises revenue for the transfer of the related goods or services to the customer; and the
Company pays or promises to pay the consideration.Customers’ unexercised rights
Upon receipt of a prepayment for a good or service from a customer the Company shall
recognise a contract liability in the amount of the prepayment and recognise revenue when it
satisfies its performance obligation. If the prepayment to the Company is non-refundable and
the customer may not exercise part or all of its contractual rights and the Company expects to
be entitled to a breakage amount related to those unexercised rights of the customer the
Company shall recognise the expected breakage amount as revenue in proportion to the
pattern of rights exercised by the customer; otherwise the Company shall recognise the
remaining balance of above mentioned liability as revenue when the likelihood of the
customer exercising its remaining rights becomes remote.Contract modifications
45FIYTA Precision Technology Co. Ltd. Notes to the financial statements
When the construction contract modifications exist between the Company and the customer:
(i) The Company shall account for a contract modification as a separate contract if the
modification results in the addition of promised construction services that are distinct and
increase of the price of the contract and the price of the contract increases by an amount of
consideration that reflects the Company’s stand-alone selling prices of the additional
promised construction services;
(ii) If the contract modification is not accounted for as a separate contract in accordance with
above mentioned circumstance and the remaining construction services are distinct from the
construction services transferred on or before the date of the contract modification the
Company shall account for the contract modification as if it were a termination of the existing
contract and the creation of a new contract with the combination of the remaining
performance obligations of the existing contract and the contract modification.(iii) If the contract modification is not accounted for as a separate contract in accordance with
above mentioned circumstance and the remaining construction services cannot be distinct
from the construction services transferred on or before the date of the contract modification
the Company shall account for the contract modification as if it were a part of the existing
contract and the effect that the contract modification has on the transaction price and on the
entity’s measure of progress towards complete satisfaction of the performance obligation is
recognised as an adjustment to revenue at the date of the contract modification.(b) Specific Method
Revenue recognition methods of the Company are as follows:
(i) Sales of watch
Sale of watch belongs to fulfilling performance obligations at a point of time.A. Online sales
Revenue shall be recognized at the point that the goods are dispatched the customer
confirmed received the goods and the platform has collected the payment
B. Offline sales
Revenue shall be recognized at the point when the goods are delivered and payment by
customer is collected.Revenue shall be recognized at the point when the products are delivered to and accepted by
the customer the payment has been received or the right to collect payment is obtained and
related economic benefits are probable to flow into the entity
C. Consignment sale
Under consignment sales arrangements revenue is recognized upon receiving the sales list
from the consignee confirming that control of goods has been transferred to the customer.D. Sale of consigned goods from others
46FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Under sale arrangement of consigned goods from others the Company recognizes revenue
using the net method when external consigned products are delivered to customers and control
of the goods has been transferred to the buyer
(ii) 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.(iii) Property leasing
For the accounting treatment of the Company as a lessor please refer to Note 3.30.
3.28 Government Grants
(a) Recognition of government grants
A government grant shall not be recgonised until there is reasonable assurance that:
(i) The Company will comply with the conditions attaching to them; and
(ii) The grants will be received.(b) Measurement of government grants
Monetary grants from the government shall be measured at amount received or receivable
and non-monetary grants from the government shall be measured at their fair value or at a
nominal value of RMB 1.00 when reliable fair value is not available.(c) Accounting for government grants
(i) Government grants related to assets
Government grants pertinent to assets mean the government grants that are obtained by the
Company used for purchase or construction or forming the long-term assets by other ways.Government grants pertinent to assets shall be recognised as deferred income and should be
recognised in profit or loss on a systematic basis over the useful lives of the relevant assets.Grants measured at their nominal value shall be directly recognised in profit or loss of the
period when the grants are received. When the relevant assets are sold transferred written off
or damaged before the assets are terminated the remaining deferred income shall be
transferred into profit or loss of the period of disposing relevant assets.(ii) Government grants related to income
Government grants other than related to assets are classified as government grants related to
income. Government grants related to income are accounted for in accordance with the
following principles:
47FIYTA Precision Technology Co. Ltd. Notes to the financial statements
If the government grants related to income are used to compensate the enterprise’s relevant
expenses or losses in future periods such government grants shall be recognised as deferred
income and included into profit or loss in the same period as the relevant expenses or losses
are recognised;
If the government grants related to income are used to compensate the enterprise’s relevant
expenses or losses incurred such government grants are directly recognised into current profit
or loss.For government grants comprised of part related to assets as well as part related to income
each part is accounted for separately; if it is difficult to identify different part the government
grants are accounted for as government grants related to income as a whole.Government grants related to daily operation activities are recognised in other income in
accordance with the nature of the activities and government grants irrelevant to daily
operation activities are recognised in non-operating income.(iii) Loan interest subsidy
When loan interest subsidy is allocated to the bank and the bank provides a loan at lower-
market rate of interest to the Company the loan is recognised at the actual received amount
and the interest expense is calculated based on the principal of the loan and the lower-market
rate of interest.When loan interest subsidy is directly allocated to the Company the subsidy shall be
recognised as offsetting the relevant borrowing cost.(iv) Repayment of the government grants
Repayment of the government grants shall be recorded by increasing the carrying amount of
the asset if the book value of the asset has been written down or reducing the balance of
relevant deferred income if deferred income balance exists any excess will be recognised into
current profit or loss; or directly recognised into current profit or loss for other circumstances.
3.29 Deferred Tax Assets and Deferred Tax Liabilities
Temporary differences are differences between the carrying amount of an asset or liability in
the statement of financial position and its tax base at the balance sheet date. The Company
recognise and measure the effect of taxable temporary differences and deductible temporary
differences on income tax as deferred tax liabilities or deferred tax assets using liability
method. Deferred tax assets and deferred tax liabilities shall not be discounted.(a) Recognition of deferred tax assets
Deferred tax assets should be recognised for deductible temporary differences the
carryforward of unused tax losses and the carryforward of unused tax credits to the extent that
it is probable that taxable profit will be available against which the deductible temporary
differences the carryforward of unused tax losses and the carryforward of unused tax credits
can be utilised at the tax rates that are expected to apply to the period when the asset is
realised unless the deferred tax asset arises from the initial recognition of an asset or liability
48FIYTA Precision Technology Co. Ltd. Notes to the financial statements
in a transaction that:
(i) Is not a business combination; and
(ii) At the time of the transaction affects neither accounting profit nor taxable profit (tax loss)
The Company shall recognise a deferred tax asset for all deductible temporary differences
arising from investments in subsidiaries associates and joint ventures only to the extent that
it is probable that:
(i) The temporary difference will reverse in the foreseeable future; and
(ii) Taxable profit will be available against which the deductible temporary difference can be
utilised.At the end of each reporting period if there is sufficient evidence that it is probable that
taxable profit will be available against which the deductible temporary difference can be
utilized the Company recognises a previously unrecognised deferred tax asset.The carrying amount of a deferred tax asset shall be reviewed at the end of each reporting
period. The Company shall reduce the carrying amount of a deferred tax asset to the extent
that it is no longer probable that sufficient taxable profit will be available to allow the benefit
of part or all of that deferred tax asset to be utilised. Any such reduction shall be reversed to
the extent that it becomes probable that sufficient taxable profit will be available.(b) Recognition of deferred tax liabilities
A deferred tax liability shall be recognised for all taxable temporary differences at the tax rate
that are expected to apply to the period when the liability is settled.(i) No deferred tax liability shall be recognised for taxable temporary differences arising from:
* The initial recognition of goodwill; or
* The initial recognition of an asset or liability in a transaction which: is not a business
combination; and at the time of the transaction affects neither accounting profit nor taxable
profit (tax loss)
(ii) An entity shall recognise a deferred tax liability for all taxable temporary differences
associated with investments in subsidiaries associates and joint ventures except to the extent
that both of the following conditions are satisfied:
* The Company is able to control the timing of the reversal of the temporary difference; and
* It is probable that the temporary difference will not reverse in the foreseeable future.(c) Recognition of deferred tax liabilities or assets involved in special transactions or
events
(i) Deferred tax liabilities or assets related to business combination
For the taxable temporary difference or deductible temporary difference arising from a
business combination not under common control a deferred tax liability or a deferred tax
asset shall be recognised and simultaneously goodwill recognised in the business
49FIYTA Precision Technology Co. Ltd. Notes to the financial statements
combination shall be adjusted based on relevant deferred tax expense (income).(ii) Items directly recognised in equity
Current tax and deferred tax related to items that are recognised directly in equity shall be
recognised in equity. Such items include: other comprehensive income generated from fair
value fluctuation of other debt investments; an adjustment to the opening balance of retained
earnings resulting from either a change in accounting policy that is applied retrospectively or
the correction of a prior period (significant) error; amounts arising on initial recognition of the
equity component of a compound financial instrument that contains both liability and equity
component.(iii) Unused tax losses and unused tax credits
Unused tax losses and unused tax credits generated from daily operation of the Company
itself
Deductible loss refers to the loss calculated and permitted according to the requirement of tax
law that can be offset against taxable income in future periods. The criteria for recognising
deferred tax assets arising from the carryforward of unused tax losses and tax credits are the
same as the criteria for recognising deferred tax assets arising from deductible temporary
differences. The Company recognises a deferred tax asset arising from unused tax losses or
tax credits only to the extent that there is convincing other evidence that sufficient taxable
profit will be available against which the unused tax losses or unused tax credits can be
utilised by the Company. Income taxes in current profit or loss shall be deducted as well.Unused tax losses and unused tax credits arising from a business combination
Under a business combination the acquiree’s deductible temporary differences which do not
satisfy the criteria at the acquisition date for recognition of deferred tax asset shall not be
recognised. Within 12 months after the acquisition date if new information regarding the
facts and circumstances exists at the acquisition date and the economic benefit of the
acquiree’s deductible temporary differences at the acquisition is expected to be realised the
Company shall recognise acquired deferred tax benefits and reduce the carrying amount of
any goodwill related to this acquisition. If goodwill is reduced to zero any remaining deferred
tax benefits shall be recognised in profit or loss. All other acquired deferred tax benefits
realised shall be recognised in profit or loss.(iv) Temporary difference generated in consolidation elimination
When preparing consolidated financial statements if temporary difference between carrying
value of the assets and liabilities in the consolidated financial statements and their taxable
bases is generated from elimination of inter-company unrealized profit or loss deferred tax
assets or deferred tax liabilities shall be recognised in the consolidated financial statements
and income taxes expense in current profit or loss shall be adjusted as well except for deferred
tax related to transactions or events recognised directly in equity and business combination.(v) Share-based payment settled by equity
50FIYTA Precision Technology Co. Ltd. Notes to the financial statements
If tax authority permits tax deduction that relates to share-based payment during the period in
which the expenses are recognised according to the accounting standards the Company
estimates the tax base in accordance with available information at the end of the accounting
period and the temporary difference arising from it. Deferred tax shall be recognised when
criteria of recognition are satisfied. If the amount of estimated future tax deduction exceeds
the amount of the cumulative expenses related to share-based payment recognised according
to the accounting standards the tax effect of the excess amount shall be recognised directly in
equity.(d) Basis for deferred income tax assets and deferred income tax liabilities presented on
a net basis
The Company shall offset deferred tax assets and deferred tax liabilities if and only if: (i) the
Company has a legally enforceable right to set off current tax assets against current tax
liabilities; and
(ii) the deferred tax assets and the deferred 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 tax liabilities and assets on a
net basis or to realise the assets and settle the liabilities simultaneously in each future period
in which significant amounts of deferred tax liabilities or assets are expected to be settled or
recovered.
3.30 Leases
(a) Identifying a lease
At inception of a contract the Company shall assess whether the contract is or contains a
lease. A contract is or contains a lease if the contract conveys the right to control the use of
one or more identified assets for a period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use of an identified asset for a period of
time the Company shall assess whether throughout the period of use the customer has the
right to obtain substantially all of the economic benefits from use of the identified asset and to
direct the use of the identified asset.(b) Identifying a separate lease component
When a contract includes more than one separate lease components the Company shall
separate components of the contract and account for each lease component separately. The
right to use an underlying asset is a separate lease component if both conditions have been
satisfied: (i) the lessee can benefit from use of the underlying asset either on its own or
together with other resources that are readily available to the lessee; (ii) the underlying asset is
neither highly dependent on nor highly interrelated with the other underlying assets in the
contract.(c) The Company as a lessee
51FIYTA Precision Technology Co. Ltd. Notes to the financial statements
At the commencement date the Company identifies the lease that has a lease term of 12
months or less and does not contain a purchase option as a short-term lease. A lease qualifies
as a lease of a low-value asset if the nature of the asset is such that when new the asset is
typically of low value. If the Company subleases an asset or expects to sublease an asset the
head lease does not qualify as a lease of a low-value asset.For all the short-term leases or leases for which the underlying asset is of low value the
Company shall recognise the lease payments associated with those leases as cost of relevant
asset or expenses in current profit or loss on a straight-line basis over the lease term.Except for the election of simple treatment as short-term lease or lease of a low-value asset as
mentioned above at the commencement date the Company shall recognise a right-of-use
asset and a lease liability.(i) Right-of-use asset
A right-of-use asset is an asset that represents a lessee’s right to use an underlying asset for
the lease term.At the commencement date the Company shall initially measure the right-of-use asset at cost.The cost of the right-of-use asset shall comprise:
* the amount of the initial measurement of the lease liability；
* any lease payments made at or before the commencement date less any lease incentives
received;
* any initial direct costs incurred by the lessee; and
* an estimate of costs to be incurred by the lessee in dismantling and removing the
underlying asset restoring the site on which it is located or restoring the underlying asset to
the condition required by the terms and conditions of the lease. The Company recognises and
measures the cost in accordance with the recognition criteria and measurement method for
estimated liabilities details please refer to Notes 3.25. Those costs incurred to produce
inventories shall be included in the cost of inventories.The right-of-use asset shall be depreciated according to the categories using straight‐ line
method. If it is reasonably certain that the ownership of the underlying asset shall be
transferred to the lessee by the end of the lease term the depreciation rate shall be determined
based on the classification of the right-of- use asset and estimated residual value rate from the
commencement date to the end of the useful life of the underlying asset. Otherwise the
depreciation rate shall be determined based on the classification of the right-of-use asset from
the commencement date to the earlier of the end of the useful life of the right-of-use asset or
the end of the lease term.After the commencement date the Company shall remeasure the lease liability based on the
revised present value of the lease payments and adjust the carrying amount of the right-of-use
asset if there is a change in the in-substance fixed payments or change in the amounts
expected to be payable under a residual value guarantee or change in an index or a rate used
52FIYTA Precision Technology Co. Ltd. Notes to the financial statements
to determine lease payments or change in the assessment or exercising of an option to
purchase the underlying asset or an option to extend or terminate the lease.(d) The Company as a lessor
At the commencement date the Company shall classify a lease as a finance lease if it transfers
substantially all the risks and rewards incidental to ownership of an underlying asset
otherwise it shall be classified as an operating lease.(i) Operating leases
The Company shall recognise lease payments from operating leases as income on a straight-
line basis over the term of the relevant lease and the initial direct costs incurred in obtaining
an operating lease shall be capitalised and recognised as an expense over the lease term on the
same basis as the lease income. The Company shall recognise the variable lease payments
relating to the operating lease but not included in the measurement of the lease receivables
into current profit or loss when incurred.(ii) Finance leases
At the commencement date the Company shall recognise the lease receivables at an account
equal to the net investment in the lease (the sum of the present value of the unguaranteed
residual values and the lease payment that are not received at the commencement date
discounted at the interest rate implicit in the lease) and derecognise the asset relating to the
finance lease. The Company shall recognise interest income using the interest rate implicit in
the lease over the lease term.The Company shall recognise the variable lease payments relating to the finance lease but not
included in the measurement of the net investment in the lease into current profit or loss when
incurred.(e) Lease modifications
(i) A lease modification accounted for as a separate lease
The Company shall account for a modification to a lease as a separate lease if both:
* the modification increases the scope of the lease by adding the right to use one or more
underlying assets; and
* the consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope.(ii) A lease modification not accounted for as a separate lease
The Company as a lessee
At the effective date of the lease modification the Company shall redetermine the lease term
of the modified lease and remeasure the lease liability by discounting the revised lease
payments using a revised discount rate. The revised discount rate is determined as the interest
rate implicit in the lease for the remainder of the lease term if that rate can be readily
determined or the incremental borrowing rate at the effective date of the modification if the
53FIYTA Precision Technology Co. Ltd. Notes to the financial statements
interest rate implicit in the lease cannot be readily determined.The Company shall account for the remeasurement of the lease liability by:
* decreasing the carrying amount of the right-of-use asset to reflect the partial or full
termination of the lease for lease modifications that decrease the scope of the lease or shorten
the lease term. The Company shall recognise in profit or loss any gain or loss relating to the
partial or full termination of the lease.* Making a corresponding adjustment to the carrying amount of the right-of-use asset for
all other lease modifications.The Company as a lessor
The Company shall account for a modification to an operating lease as a new lease from the
effective date of the modification considering any prepaid or accrued lease payments relating
to the original lease as part of the lease payments for the new lease.For a modification to a finance lease that is not accounted for as a separate lease the
Company shall account for the modification as follows:
* if the lease would have been classified as an operating lease had the modification been in
effect at the inception date the Company shall account for the lease modification as a new
lease from the effective date of the modification and measure the carrying amount of the
underlying asset as the net investment in the lease immediately before the effective date of the
lease modification;
* if the lease would have been classified as a finance lease had the modification been in
effect at the inception date the Company shall account for the lease modification according to
the requirements in the modification or renegotiation of the contract.(f) Sale and leaseback
The Company shall determine whether the transfer of an asset under the sale and leaseback
transaction is a sale of that asset according to the policies in Note 3.27.(i) The Company as a seller (lessee)
If the transfer of the asset is not a sale the Company shall continue to recognise the
transferred asset and shall recognise a financial liability equal to the transfer proceeds. It shall
account for the financial liability according to Note 3.11. If the transfer of the asset is a sale
the Company shall measure the right-of-use asset arising from the leaseback at the proportion
of the previous carrying amount of the asset that relates to the right of use retained by the
Company. Accordingly the Company shall recognise only the amount of any gain or loss that
relates to the rights transferred to the buyer-lessor.(ii) The Company as a buyer (lessor)
If the transfer of the asset is not a sale the Company shall not recognise the transferred asset
and shall recognise a financial asset equal to the transfer proceeds. It shall account for the
financial asset according to Note 3.11. If the transfer of the asset is a sale the Company shall
54FIYTA Precision Technology Co. Ltd. Notes to the financial statements
account for the purchase of the asset applying applicable Accounting Standards of Business
Enterprises and for the lease applying the lessor accounting requirements.
3.31 Safety Production Costs
According to the relevant regulations the Company accrues the safety production costs.The safety production costs shall be recognised in the cost of the relevant products or current
profit or loss when makes the accrual and included in the “special reserve” account
simultaneously.When the accrued safety production costs are used within the scope of the regulations it shall
be treated as expense and directly deducted from the special reserve; if the fixed assets arecapitalized the expenditure incurred shall be firstly collectively recorded in “construction inprogress” and recognised as fixed asset when the safety project has been completed for its
intended use. At the same time the cost that capitalized as the fixed assets shall be deducted
from the special reserve and the accumulated depreciation with the same amount shall be
recognised. The fixed assets shall not be depreciated in subsequent reporting period.
3.32 Repurchase of Company’s Share
(a) If the Company reduces its registered capital through repurchase of the Company’s share
according to the approval required in relevant laws and regulations the share capital shall be
reduced at the par value of the shares deregistered the difference between the consideration
paid for repurchase (including the transaction cost) and the par value of the shares shall adjust
the owner’s equity. Any excess of the total par value shall offset the capital reserve (share
premium) surplus reserve and retained earnings in turn. If the consideration paid is less than
the total par value the difference shall increase the capital reserve (share premium).(b) Before being deregistered or transfered shares repurchased by the Company shall be
treated as treasury stock and all expenditures of the repurchase shall be recognised as the cost
of treasury stock.(c) Any excess of the income generated from transferring the treasury stock over their cost
shall increase the capital reserve (share premium) and any less shall offset the capital reserve
(share premium) surplus reserve and retained earnings in turn.
3.33 Restricted Stock
In the equity incentive plan the Company shall grant restricted shares to the motivated target
and the motivated object first subscribes for the stock. If the subsequent unlocking conditions
specified in the equity incentive plan are not met the Company repurchases the stock at the
price agreed in advance. If the restricted shares issued to employees are subject to the
procedures for capital increase such as registration in accordance with relevant regulations at
grant date the Company shall recognise the share capital and capital reserve (share premium)
based on the received subscription fees from the employees; treasury stocks and other
payables shall be recognised based on the repurchase obligation.
3.34 Changes in Significant Accounting Policies and Accounting Estimates
55FIYTA Precision Technology Co. Ltd. Notes to the financial statements
(a) Changes in accounting polices
On 25 October 2023 the Ministry of Finance issued Interpretation of Accounting Standards
for Business Enterprises No.17 (Caikuai[2023] No.21) (hereinafter referred to as
"Interpretation No.17") shall be implemented as of 1 January 2024. The Company
implemented the provision on 1 January 2024. There are not any significant impacts on the
Company’s financial statements during the reporting period for the implementation of
Interpretation No.17.The Compilation of Enterprise Accounting Standards Application Guidelines 2024 issued by
the Ministry of Finance in March 2024 and Interpretation No. 18 of Enterprise Accounting
Standards issued on 6 December 2024 stipulate that warranty-related expenses should be
included in the cost of sales. There are not any significant impacts on the Company’s financial
statements during the reporting period for the implementation.(b) Significant changes in accounting estimates
The Company has no significant changes in accounting estimates for the reporting period.
4. TAXATION
4.1 Major Categories of Tax and Tax Rates Applicable to the Company
Categories of tax Basis of tax assessment Tax rate
Output tax is calculated at rates of 5% 6%
9% and 13% based on sales revenue. After
Value added tax (VAT) Taxable revenue
deducting input tax as per regulations the
net tax payable is determined.Taxable Price and Sales
Consumption tax Volume of High-End Watch 20%
Sales Revenue
Urban maintenance and Turnover tax payable 5% 7%
construction tax
Property tax 70% or 80% of the original 1.2% 12%
cost of property
Tax rates of income tax of different subsidiaries are stated as below:
Name of Taxpayer Rate of Income Tax
FIYTA Precision Technology Co. Ltd. 25%
Shenzhen HARMONY World Watch Center Co. Ltd. (i) 25%
FIYTA Sales Co. Ltd. (i) 25%
Shenzhen FIYTA Precision Technology Co. Ltd. (ii) 15%
Shenzhen FIYTA Technology Development Co. Ltd. (ii) 15%
HARMONY World Watch Center(Hainan) Co. Ltd. (v) 20%
Shenzhen Xunhang Precision Technology Co. Ltd. 25%
Emile Choureit Timing (Shenzhen) Ltd. 25%
56FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Name of Taxpayer Rate of Income Tax
Liaoning Hengdarui Commercial & Trade Co. Ltd. 25%
Temporal (Shenzhen) Co. Ltd. 25%
Shenzhen Harmony E-commerce Co. Ltd. (v) 20%
FIYTA Hong Kong (iii) 16.5%
Montres Chouriet SA (iv) 30%
Notes:
(i) According to the relevant provisions of the Notice of the State Administration of Taxation
on Issuing the Interim Measures for the Administration of Collection of Enterprise Income
Tax on the Basis of Consolidation of Trans-regional Business Operations the head office of
the Company and its branches shall be governed by the administrative measures for enterpriseincome tax namely namely “centralized calculation level-by-level administration pre-payment at the locality consolidated settlement and payment and transfer to treasury”. 50%
of the prepayment shall be apportioned among the branches and 50% shall be apportioned by
the head office;(ii) the companies enjoy the corporate income tax rate reduction for “key high-tech enterprisessupported by the state”;
(iii) the company is incorporated in Hong Kong and is subject to Hong Kong Profits Tax at a
rate of 16.50% for the current year;
(iv) the company is incorporated in Switzerland and is subject to the local tax rate which the
comprehensive tax rate for the current year is 30%;
(v) the companies qualify as small low-profit enterprises and are subject to corporate income
tax at a rate of 20%.
4.2 Tax Preference
In accordance with the Corporate Income Tax Law of the People's Republic of China high-
tech enterprises that are key areas of state support are subject to a reduced corporate income
tax rate of 15%. The subsidiary Shenzhen FIYTA Precision Technology Co. Ltd. was
certified as a high-tech enterprise in 2024 with a certificate number of GR202444200965
valid for three years and is subject to a corporate income tax rate of 15% from 2024 to 2026.The subsidiary Shenzhen FIYTA Technology Development Co. Ltd. was certified as a high-
tech enterprise in 2022 with a certificate number of GR202244204678 valid for three years
and is subject to a corporate income tax rate of 15% from 2022 to 2024.In accordance with the relevant provisions of the Announcement of the Ministry of Finance
and the State Administration of Taxation on Preferential Income Tax Policies for Small and
Micro Enterprises and Individual Businesses (Cai Shui [2023] No. 6) small low-profit
enterprises are allowed to include only 25% of their income in the taxable income base and
are then subject to a 20% corporate income tax rate.In accordance with the Notice of the Ministry of Finance and the State Administration of
57FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Taxation on Extending the Loss Carryforward Period for High-Tech Enterprises and
Technology-Based Small and Medium-Sized Enterprises (Cai Shui [2018] No. 76) effective
from January 1 2018 any unutilized losses incurred during the five accounting years prior to
obtaining high-tech enterprise status may be carried forward to subsequent years. The
maximum carryforward period has been extended from five years to ten years.In accordance with the Announcement of the Ministry of Finance and the State Administration
of Taxation on Further Improving the Pre-Tax Additional Deduction Policy for R&D
Expenses (Cai Shui [2023] No. 7) for R&D expenses actually incurred by enterprises that do
not result in the creation of an intangible asset (and are therefore recorded in the current profit
or loss) an additional 100% deduction may be claimed for tax purposes on top of the
statutory deduction starting from January 1 2023. If the R&D activities result in the creation
of an intangible asset beginning January 1 2023 200% of the intangible asset’s cost may be
amortized for tax purposes.Since 2019 Hong Kong has implemented a two-tiered profits tax regime. Under this system
the first HKD 2 million of profits is taxed at a rate of 8.25% and any profits exceeding that
threshold continue to be taxed at 16.5%.
5. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
5.1 Monetary funds
Items 31 December 2024 31 December 2023
Cash on hand 76344.01 178996.87
Cash in bank 18205968.96 35443378.12
Other monetary funds 2055640.10 1262979.96
Funds in finance company 498616224.42 467743798.76
Total 518954177.49 504629153.71
Including：The total amount
deposited overseas 6150258.49 1202601.86
Notes:
(i) Funds in finance company primarily refer to amounts held at AVIC Finance Co. Ltd..(ii) As of 31 December 2024 the Company has no pledged or frozen funds nor any amounts
with potential recovery risk.
5.2 Notes Receivable
(a) Notes receivable by category
31 December 2024 31 December 2023
Items Provision
Book Balance Provision forbad debt Carrying amount Book Balance for bad
Carrying
debt amount
Bank
acceptance 9184912.30 9184912.30 10363449.00 10363449.00
58FIYTA Precision Technology Co. Ltd. Notes to the financial statements
31 December 2024 31 December 2023
Items
Book Balance Provision for
Provision
Carrying amount Book Balance for bad Carryingbad debt debt amount
bills
Commercial
acceptance 21501777.16 1075088.86 20426688.30 8321603.55 416080.18 7905523.37
bills
Total 30686689.46 1075088.86 29611600.60 18685052.55 416080.18 18268972.37
(b) Notes receivable discounted or endorsed to third parties but not yet matured at 31
December 2024
Items Amount derecognised as at the end Amount not derecognised as at theof the reporting period end of the reporting period
Bank acceptance bills 3957187.86
(c) Notes receivable by bad debt provision method
31 December 2024
Category Book balance Provision for bad debt Carrying
Amount Proportion(%) Amount
Provision amount
ratio (%)
Provision for bad debt
recognised individually
Provision for bad debt
recognised by groups 30686689.46 100.00 1075088.86 3.50 29611600.60
Including: Group 2 9184912.30 29.93 9184912.30
Group 1 21501777.16 70.07 1075088.86 5.00 20426688.30
Total 30686689.46 100.00 1075088.86 3.50 29611600.60
(Continued)
31 December 2023
Category Book balance Provision for bad debt Carrying
Amount Proportion Provision amount(%) Amount ratio (%)
Provision for bad debt
recognised individually
Provision for bad debt
recognised by groups 18685052.55 100.00 416080.18 2.23 18268972.37
Including: Group 2 10363449.00 55.46 10363449.00
Group 1 8321603.55 44.54 416080.18 5.00 7905523.37
Total 18685052.55 100.00 416080.18 2.23 18268972.37
59FIYTA Precision Technology Co. Ltd. Notes to the financial statements
For details of recognition criteria and explanation for provision of bad debt by groups please
refer to Notes 3.11.(d) Changes of provision for bad debt during the reporting period
31 Changes during the reporting period 31
Category December Recovery Elimination December
2023 Provision or reversal or write-off others 2024
Provision for bad debt
recognised individually
Provision for bad debt
recognised by groups 416080.18 659008.68 1075088.86
Including: Group 2
Group 1 416080.18 659008.68 1075088.86
Total 416080.18 659008.68 1075088.86
5.3 Accounts Receivable
(a) Accounts receivable by aging
Aging 31 December 2024 31 December 2023
Within one year 271349349.06 333204160.07
1-2 years 764175.79 2123874.00
2-3 years 1410843.36 4200458.08
Over 3 years 20138406.23 18005255.95
Subtotal 293662774.44 357533748.10
Less: provision for bad debt 33509940.01 34390986.46
Total 260152834.43 323142761.64
(b) Accounts receivable by bad debt provision method
31 December 2024
Category Book balance Provision for bad debt Carrying
Amount Proportion Provision amount(%) Amount ratio (%)
Provision for bad debt
recognised individually 25816016.35 8.79 24222124.31 93.83 1593892.04
Provision for bad debt
recognised by groups 267846758.09 91.21 9287815.70 3.47 258558942.39
Including:Group1 267846758.09 91.21 9287815.70 3.47 258558942.39
Total 293662774.44 100.00 33509940.01 11.41 260152834.43
(Continued)
31 December 2023
Category Book balance Provision for bad debt Carrying
Amount Proportion Provision ratio amount(%) Amount (%)
60FIYTA Precision Technology Co. Ltd. Notes to the financial statements
31 December 2023
Category Book balance Provision for bad debt Carrying
Amount Proportion Amount Provision ratio amount(%) (%)
Provision for bad debt
recognised individually 24708541.73 6.91 23148792.25 93.69 1559749.48
Provision for bad debt
recognised by groups 332825206.37 93.09 11242194.21 3.38 321583012.16
Including:Group1 332825206.37 93.09 11242194.21 3.38 321583012.16
Total 357533748.10 100.00 34390986.46 9.62 323142761.64
Detailed explanation of provision for bad debt:
(i) As at 31 December 2024 accounts receivable with bad debt provision recognised
individually
31 December 2024
Name
Book balance Provision for Provision ratiobad debt (%) Reason for provision
Other customers 25816016.35 24222124.31 93.83 Existence of disputes poormanagement ect
(ii) As at 31 December 2024 accounts receivable with bad debt provision recognised by
group 1
31 December 2024 31 December 2023
Aging Accounts Provision for Provision Accounts Provision for Provision
receivable bad debt ratio (%) receivable bad debt ratio (%)
Within one year 266494339.01 8150327.80 3.06 330569799.62 9694581.78 2.93
1-2 years 238812.42 23881.24 10.00 786438.13 78643.81 10.00
Over 2 years 1113606.66 1113606.66 100.00 1468968.62 1468968.62 100.00
Total 267846758.09 9287815.70 3.47 332825206.37 11242194.21 3.38
(c) Changes of provision for bad debt during the reporting period
31 December Changes during the reporting periodCategory 31 December2023 Provision Recovery or Elimination 2024reversal or write-off Others
Provision for bad
debt recognised 23148792.25 4728732.75 3699262.84 43862.15 24222124.31
individually
Provision for bad
debt recognised 11242194.21 -1945944.73 -8433.78 9287815.70
by groups
Including:Group1 11242194.21 -1945944.73 -8433.78 9287815.70
Total 34390986.46 2782788.02 3699262.84 35428.37 33509940.01
(d) No accounts receivable written off during the reporting period
61FIYTA Precision Technology Co. Ltd. Notes to the financial statements
(e) Top five closing balances by entity
Balance of accounts Proportion of the balance Provision for bad
Entity name receivable as at 31 to the total accounts debt of accounts
December 2024 receivable (%) receivable
Total of the top five accounts
receivable balances at the end 66853017.27 22.77 2006553.32
of the period
5.4 Advances to Suppliers
(a) Advances to suppliers by aging
31 December 2024 31 December 2023
Aging
Amount Proportion (%) Amount Proportion (%)
Within one year 3858053.60 100.00 6564760.64 99.90
1 to 2 years 6479.34 0.10
Total 3858053.60 100.00 6571239.98 100.00
(b) Top five closing balances by entity
Entity name Balance as at 31 Proportion of the balance to theDecember 2024 total advances to suppliers (%)
Total of the top five advances to suppliers
at the end of the period 2591111.66 67.16
5.5 Other Receivables
(a) Other receivables by aging
Aging 31 December 2024 31 December 2023
Within one year 59521049.33 60575208.36
1-2 years 302069.34 219738.83
2-3 years 219738.83 119250.00
Over 3 years 1278954.90 1159704.90
Subtotal 61321812.40 62073902.09
Less: provision for bad debt 4339461.13 4348110.09
Total 56982351.27 57725792.00
(b) Other receivables by nature
Nature 31 December 2024 31 December 2023
Deposit and guarantee receivable 52384967.00 51775226.86
Employee advance payments 1282327.49 1549821.50
Others 7654517.91 8748853.73
Subtotal 61321812.40 62073902.09
Less: provision for bad debt 4339461.13 4348110.09
62FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Nature 31 December 2024 31 December 2023
Total 56982351.27 57725792.00
(c) Other receivables by bad debt provision method
A. As at 31 December 2024 provision for bad debt recognised based on three stages model
Stages Book balance Provision for bad debt Carrying amount
Stage 1 59786824.63 2872168.83 56914655.80
Stage 2
Stage 3 1534987.77 1467292.30 67695.47
Total 61321812.40 4339461.13 56982351.27
As at 31 December 2024 provision for bad debt at stage 1:
Category Book balance Provision ratio Provision for Carrying(%) bad debt amount
Provision for bad debt
recognised individually
Provision for bad debt
recognised by groups 59786824.63 4.80 2872168.83 56914655.80
Including: Group 1 51515791.06 5.10 2629814.29 48885976.77
Group 2 1282327.49 1282327.49
Group 3 6988706.08 3.47 242354.54 6746351.54
Total 59786824.63 4.80 2872168.83 56914655.80
As at 31 December 2024 provision for bad debt at stage 3:
Category Book balance Provision ratio (%) Provision for Carryingbad debt amount
Provision for bad debt
recognised individually 1534987.77 95.59 1467292.30 67695.47
B. As at 31 December 2023 provision for bad debt recognised based on three stages model
Stages Book balance Provision for bad debt Carrying amount
Stage 1 60655587.19 2980723.19 57674864.00
Stage 2
Stage 3 1418314.90 1367386.90 50928.00
Total 62073902.09 4348110.09 57725792.00
As at 31 December 2023 provision for bad debt at stage 1:
Category Book balance Provision ratio Provision for Carrying(%) bad debt amount
Provision for bad debt
recognised individually
Provision for bad debt 4.91
recognised by groups 60655587.19 2980723.19 57674864.00
63FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Category Book balance Provision ratio Provision for Carrying(%) bad debt amount
Including: Group 1 51304601.86 5.07 2603277.66 48701324.20
Group 2 1549821.50 1549821.50
Group 3 7801163.83 4.84 377445.53 7423718.30
Total 60655587.19 4.91 2980723.19 57674864.00
As at 31 December 2023 provision for bad debt at stage 3:
Category Book balance Provision ratio (%) Provision for Carryingbad debt amount
Provision for bad debt
recognised individually 1418314.90 96.41 1367386.90 50928.00
Basis of provision for bad debt during the reporting period:
For details of recognition criteria and explanation for provision of bad debt by groups please
refer to Notes 3.11
(d) Changes of provision for bad debt during the reporting period
31 December Changes during the reporting period 31Category 2023 Recovery Elimination DecemberProvision or reversal or write-off Others 2024
Provision for bad
debt recognised 1367386.90 153905.40 54000.00 1467292.30
individually
Provision for bad
debt recognised by 2980723.19 -108925.22 370.86 2872168.83
groups
Total 4348110.09 44980.18 54000.00 370.86 4339461.13
(e) No other receivables written off during the reporting period
(f) Top five closing balances by entity
Entity name Balance as at 31 Proportion of the balance toDecember 2024 the total other receivables (%) Provision for bad debt
Total of the top five
other receivables at the 9225085.62 15.04 479606.52
end of the period.
5.6 Inventories
(a) Inventories by category
31 December 2024 31 December 2023
Items
Book balance Provision forimpairment Carrying amount Book balance
Provision for
impairment Carrying amount
Raw
materials 114983902.68 2082708.59 112901194.09 167281491.84 5290855.71 161990636.13
Work in
process 8125895.42 8125895.42 12060525.88 12060525.88
Goods in
stock 1934763585.61 71303705.38 1863459880.23 1993236975.36 66621962.09 1926615013.27
64FIYTA Precision Technology Co. Ltd. Notes to the financial statements
31 December 2024 31 December 2023
Items
Book balance Provision for Provision forimpairment Carrying amount Book balance impairment Carrying amount
Total 2057873383.71 73386413.97 1984486969.74 2172578993.08 71912817.80 2100666175.28
(b) Provision for impairment
Increase during the reporting period Decrease during the
Items 31 December reporting period 31 December2023 Provision Others Reversal orelimination Others
2024
Raw
materials 5290855.71 3208147.12 2082708.59
Goods in
stock 66621962.09 27005965.72 25097.41 22349319.84 71303705.38
Total 71912817.80 27005965.72 25097.41 25557466.96 73386413.97
5.7 Other Current Assets
Items 31 December 2024 31 December 2023
Reclassification from debit side
balance of VAT payable 45766634.09 52749847.21
Term Deposit 29408855.46
Advance Tax Payment 4402072.04 1364632.40
Others 18430363.63 18134912.20
Total 98007925.22 72249391.81
5.8 Long-term Equity Investments
Changes during the reporting period
31 December Addition Decrease
Investment Adjustments
Investees al in income/(losses) of other Changes2023
investme investme recognisedunder equity comprehensi
in other
nt nt ve income equitymethod
I. Associates
Shanghai Watch
Co. Ltd. 51862607.30 -955570.46
(Continued)
Changes during the reporting period Provision for
Investees Declaration of cash 31 December impairment at
dividends or Provision for Others 2024 31 December
distribution of profit impairment 2024
II. Associates
Shanghai Watch
Co. Ltd. 50907036.84
5.9 Investment Properties
(a) Investment properties accounted for using cost model
65FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Items Building and plants
Initial cost:
Balance as at 31 December 2023 620335023.89
Increase during the reporting period
Decrease during the reporting period 75789731.02
(i) Transfer to fixed assets 75789731.02
Balance as at 31 December 2024 544545292.87
Accumulated depreciation and amortisation:
Balance as at 31 December 2023 260079191.75
Increase during the reporting period 15693988.44
(i) Provision 15693988.44
Decrease during the reporting period 32230251.73
(i) Transfer to fixed assets 32230251.73
Balance as at 31 December 2024 243542928.46
Provision for impairment:
Carrying amount:
Balance as at 31 December 2024 301002364.41
Balance as at 31 December 2023 360255832.14
5.10 Fixed Assets
(a)Details of fixed assets
Items Buildings and Machineryconstructions equipment Vehicles
Electrical Other
equipment equipment Total
Initial cost:
Balance as at 31
December 2023 441589632.63 130667789.21 13277093.83 50657219.07 44094254.35 680285989.09
Increase during the
reporting period 75854590.88 2379881.58 2557928.15 1082683.36 81875083.97
(i) Acquisition 2353092.05 2557647.89 1082683.36 5993423.30
(ii)Transfer from
investment properties 75789731.02 75789731.02
(iii) Exchange
differences on
translating foreign 64859.86 26789.53 280.26 91929.65
operations
Decrease during the
reporting period 1926012.87 1387079.51 1245349.81 1471532.10 1361194.70 7391168.99
(i) Disposal 570549.99 128105.05 1245349.81 1427788.83 1245924.14 4617717.82
(ii) Exchange
differences on
translating foreign 1355462.88 1258974.46 43743.27 115270.56 2773451.17
operations
Balance as at 31
December 2024 515518210.64 131660591.28 12031744.02 51743615.12 43815743.01 754769904.07
Accumulated
66FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Items Buildings and Machinery Electrical Otherconstructions equipment Vehicles equipment equipment Total
depreciation:
Balance as at 31
December 2023 152207027.41 83133593.32 12078669.40 37956542.09 39124802.19 324500634.41
Increase during the
reporting period 44774266.46 8704010.54 299445.54 3749008.67 1214525.71 58741256.92
(i) Provision 12488279.49 8678572.22 299445.54 3748742.42 1214525.71 26429565.38
(ii)Transfer from
investment properties 32230251.73 32230251.73
(iii) Exchange
differences on
translating foreign 55735.24 25438.32 266.25 81439.81
operations
Decrease during the
reporting period 1020863.84 1284047.80 1183082.31 1305750.47 1246387.25 6040131.67
(i) Disposal 395811.19 113925.59 1183082.31 1266625.97 1131286.81 4090731.87
(ii) Exchange
differences on
translating foreign 625052.65 1170122.21 39124.50 115100.44 1949399.80
operations
Balance as at 31
December 2024 195960430.03 90553556.06 11195032.63 40399800.29 39092940.65 377201759.66
Provision for
impairment:
Carrying amount:
Balance as at 31
December 2024 319557780.61 41107035.22 836711.39 11343814.83 4722802.36 377568144.41
Balance as at 31
December 2023 289382605.22 47534195.89 1198424.43 12700676.98 4969452.16 355785354.68
(b) Fixed assets without certificate of title
Items Carrying amount Reason
Buildings and constructions 174611.32 Defective property rights
5.11 Right-of-use Assets
Items Buildings and constructions
Initial cost:
Balance as at 31 December 2023 153209897.81
Increase during the reporting period 104569011.66
(i) New leasing 104563758.75
(ii) Exchange differences on translating foreign operations 5252.91
Decrease during the reporting period 41047029.98
Balance as at 31 December 2024 216731879.49
Accumulated depreciation:
Balance as at 31 December 2023 43757416.17
67FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Items Buildings and constructions
Increase during the reporting period 107307185.01
(i) Provision 107301685.07
(ii) Exchange differences on translating foreign operations 5499.94
Decrease during the reporting period 32770698.10
Balance as at 31 December 2024 118293903.08
Provision for impairment:
Carrying amount:
Balance as at 31 December 2024 98437976.41
Balance as at 31 December 2023 109452481.64
5.12 Intangible Assets
Items Land use Right to use therights Software trademark Total
Initial cost:
Balance as at 31 December 2023 34933822.40 35242672.55 16599485.22 86775980.17
Increase during the reporting
period 3521544.01 5867.94 3527411.95
(i) Acquisition 3521544.01 5867.94 3527411.95
Decrease during the reporting
period
Balance as at 31 December 2024 34933822.40 38764216.56 16605353.16 90303392.12
Accumulated depreciation:
Balance as at 31 December 2023 17249475.30 27593853.68 10268270.42 55111599.40
Increase during the reporting
period 733553.28 2848199.71 42112.57 3623865.56
(i) Provision 733553.28 2848199.71 42112.57 3623865.56
Decrease during the reporting
period
Balance as at 31 December 2024 17983028.58 30442053.39 10310382.99 58735464.96
Provision for impairment:
Carrying amount:
Balance as at 31 December 2024 16950793.82 8322163.17 6294970.17 31567927.16
Balance as at 31 December 2023 17684347.10 7648818.87 6331214.80 31664380.77
5.13 Long-term Deferred Expenses
Increase during Decrease during the reporting
Items 31 December the reporting period 31 December2023 period Amortisation Other decrease 2024
Counter
fabrication 19008343.84 24379030.21 19034937.92 24352436.13
expenses
68FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Decrease during the reporting
Items 31 December
Increase during
2023 the reporting
period 31 December
period Amortisation Other decrease 2024
Renovation
expenses 96297010.20 35550587.92 48706771.89 83140826.23
Others 7019001.09 179522.85 4486463.01 2712060.93
Total 122324355.13 60109140.98 72228172.82 110205323.29
5.14 Deferred Tax Assets and Deferred Tax Liabilities
(a) Deferred tax assets before offsetting
31 December 2024 31 December 2023
Items Deductible temporary DeductibleDeferred tax assets temporary Deferred taxdifferences differences assets
Provision for
impairment loss 108844748.49 25235985.22 107672653.16 24371732.35
Unrealised
intragroup profit 65606873.01 16083716.18 83620908.60 20855280.62
Deductible losses 150789689.25 35315775.40 126562143.51 31197892.87
Equity Incentive 7958442.71 1839229.47 6263007.85 1449733.06
Lease liabilities 98553370.15 24638342.52 109682960.95 27420740.27
Others 11064124.31 2766031.08 5168527.80 1292131.95
Total 442817247.92 105879079.87 438970201.87 106587511.12
(b) Deferred tax liabilities before offsetting
31 December 2024 31 December 2023
Items Taxable temporary Deferred tax Taxable temporary Deferred tax
difference liabilities difference liabilities
One-off deduction of
fixed asset before 27444135.67 4116620.35 28437227.07 4265584.06
Corporate income tax
Right-of-use asset 98388890.53 24597222.63 109212305.15 27303076.29
Total 125833026.20 28713842.98 137649532.22 31568660.35
(c) Net balance of deferred tax liabilities and deferred tax assets after offsetting
Items Offset amount at 31
Net balance after
offsetting at 31 Offset amount at 31
Net balance after
December 2024 December 2023 offsetting at 31December 2024 December 2023
Deferred tax
assets 23723301.56 82155778.31 26359739.66 80227771.46
Deferred tax
liabilities 23723301.56 4990541.42 26359739.66 5208920.69
(d) Unrecognized deferred tax assets
69FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Items 31 December 2024 31 December 2023
Deductible temporary differences 3466155.48 3395341.37
Deductible losses 42305096.05 52523345.89
Total 45771251.53 55918687.26
(e) Deductible losses not recognised as deferred tax assets will expire in the following
periods:
Year 31 December 2024 31 December 2023
202423049503.37
202518449678.5029473842.52
202623855417.55
Total 42305096.05 52523345.89
5.15 Other Non-current Assets
31 December 2024 31 December 2023
Items Book Provision Carrying Book Provision Carrying
balance for forimpairment amount balance impairment amount
Prepayment of
long-term assets 3792253.84 3792253.84 9434627.17 9434627.17
5.16 Short-term Borrowings
Items 31 December 2024 31 December 2023
Credit loans 124087754.51 250187763.87
Bill discounting 3957187.86
Accrued interest payable 130566.65 187763.87
Total 124087754.51 250187763.87
5.17 Accounts Payable
Items 31 December 2024 31 December 2023
Payables for goods 114881141.96 171652832.83
Payables for project 651779.61 2173074.88
Total 115532921.57 173825907.71
5.18 Receipts in advance
Items 31 December 2024 31 December 2023
Rental received in advance 11783796.49 10267758.31
70FIYTA Precision Technology Co. Ltd. Notes to the financial statements
5.19 Contract liabilities
Items 31 December 2024 31 December 2023
Advances for goods 12605722.95 12286243.62
5.20 Employee Benefits Payable
(a) Details of employee benefits payable
Items 31 December Increase during the Decrease during the 31 December2023 reporting period reporting period 2024
Short-term employee
benefits 114204051.03 503849943.53 538803441.50 79250553.06
Post-employment benefits-
defined contribution plans 5581451.36 48623343.18 46235423.88 7969370.66
Termination benefits 299308.21 15031771.49 10290850.28 5040229.42
Total 120084810.60 567505058.20 595329715.66 92260153.14
(b) Short-term employee benefits
Items 31 December Increase during the Decrease during the 31 December2023 reporting period reporting period 2024
Salaries bonuses 113282042.0
allowances and subsidies 5 445277389.38 480497002.69 78062428.74
Employee benefits 162095.02 9601151.98 9688531.54 74715.46
Social insurance 78.32 23532363.96 23292392.65 240049.63
Including: Health
insurance 21442774.67 21202803.36 239971.31
Injury insurance 78.32 1170191.51 1170191.51 78.32
Birth insurance 919397.78 919397.78
Housing accumulation
fund 13551.00 19127275.53 19133537.53 7289.00
Labour union funds and
employee education 746284.64 6311762.68 6191977.09 866070.23
funds
Total 114204051.03 503849943.53 538803441.50 79250553.06
(c) Defined contribution plans
Items 31 December Increase during the Decrease during the 31 December2023 reporting period reporting period 2024
Post-employment
benefits:
1. Basic endowment
insurance 208205.97 41880916.32 41848702.38 240419.91
2. Unemployment
insurance 379.88 1857822.32 1857818.16 384.04
3. Enterprise annuity 5372865.51 4884604.54 2528903.34 7728566.71
Total 5581451.36 48623343.18 46235423.88 7969370.66
71FIYTA Precision Technology Co. Ltd. Notes to the financial statements
5.21 Taxes Payable
Items 31 December 2024 31 December 2023
Value added tax (VAT) 33699458.80 38997243.97
Corporate income tax 11535771.24 21276050.77
Individual income tax 994923.84 1101633.76
Urban maintenance and construction tax 1359840.26 1047680.77
Educational surcharge 972536.24 748598.11
Others 1252620.97 1016953.93
Total 49815151.35 64188161.31
5.22 Other Payables
(a) Other payables by category
Items 31 December 2024 31 December 2023
Dividend payable 2785293.14 2058352.24
Other payables 101853190.67 119879448.83
Total 104638483.81 121937801.07
(b) Dividends payable
Items 31 December 2024 31 December 2023
Dividends on ordinary shares 2785293.14 2058352.24
(c) Other payables
Items 31 December 2024 31 December 2023
Deposit security deposit 31563500.48 34075198.63
Repurchase liability for restricted shares 12815556.81 14304862.81
Decoration expenses 3978759.28 10214019.04
Accrued expenses and others 53495374.10 61285368.35
Total 101853190.67 119879448.83
5.23 Non-current Liabilities Maturing within One Year
Items 31 December 2024 31 December 2023
Lease liabilities due within one year 63538231.06 66399004.20
5.24 Other Current Liabilities
Items 31 December 2024 31 December 2023
Tax payable-reclassification from credit
balance of VAT Payable 1529468.07 1589635.30
72FIYTA Precision Technology Co. Ltd. Notes to the financial statements
5.25 Lease liabilities
Items 31 December 2024 31 December 2023
Lease payments 101263377.23 113786386.87
Less: Unrealised finance expenses 2659854.13 3861030.15
Subtotal 98603523.1 109925356.72
Less: lease liabilities due within one year 63538231.06 66399004.20
Total 35065292.04 43526352.52
5.26 Deferred Income
31 Increase during Decrease during
Items December the reporting the reporting 31 December
2023 period period 2024
Reason
Government grants 952785.69 952785.69 Related to Assets
5.27 Share Capital
31 December Changes during the reporting period (+-)Items 31 December2023 New Bonus Capitalisation 2024
issues issues of reserves Others
Number of total shares 415219970.00 -9455963.00 405764007.00
Notes:
(i) According to the resolution approved by the Company's Board of Directors and the
General Meeting of Shareholders on the Proposal for the Repurchase and Cancellation of
Certain Restricted Shares under the 2018 A-Share Restricted Stock Incentive Plan (Phase II)
the company repurchased and canceled 100200 A-share restricted stocks that had been
granted but were still subject to restrictions held by three former incentive recipients who
resigned and one deceased recipient.(ii) Additionally as per the Proposal for the Repurchase of Certain Domestically Listed
Foreign Shares (B Shares) approved by the Board of Directors and the General Meeting of
Shareholders the company agreed to use its own funds to repurchase certain domestically
listed foreign shares (B shares) through a centralized bidding process to reduce its registered
capital. On 10 May 2024 upon verification and confirmation by the Shenzhen Branch of
China Securities Depository and Clearing Corporation Limited the company canceled
9355763 repurchased B shares.
5.28 Capital Reserves
Items 31 December Increase during the Decrease during the 31 December2023 reporting period reporting period 2024
73FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Items 31 December Increase during the Decrease during the 31 December2023 reporting period reporting period 2024
Share premium 968257185.91 55514964.42 912742221.49
Other capital reserves 21901847.26 1695434.85 23597282.11
Total 990159033.17 1695434.85 55514964.42 936339503.60
Notes:
(i) According to the Proposal for the Repurchase of Certain Domestically Listed Foreign
Shares (B Shares) approved by the company's Board of Directors and the General Meeting of
Shareholders the company agreed to use its own funds to repurchase certain domestically
listed foreign shares (B shares) through a centralized bidding process for the purpose of
reducing registered capital. On May 10 2024 upon verification and confirmation by the
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited the
company canceled 9355763 repurchased B shares resulting in a corresponding reduction of
capital reserves by RMB 54984906.42.(ii) According to the Proposal on Granting Restricted Shares to Incentive Recipients under
the 2018 A-Share Restricted Stock Incentive Plan (Phase II) approved by the company's
Board of Directors and the General Meeting of Shareholders in the 2024 fiscal year the
company recognized related costs or expenses for the services provided by the above
incentive recipients resulting in an increase in "Other Capital Reserves" by RMB 1
695434.85.
(iii) As per stated in Note 5.27(a) the Company repurchased restricted stock reducing the
"Share Premium" by RMB 530058.00.
5.29 Treasury Stock
Items 31 December 2023 Increase during the Decrease during the 31 Decemberreporting period reporting period 2024
Share Repurchase for
Capital Reduction 64340669.42 64340669.42
Restricted Stock
Payment 14304862.81 1489306.00 12815556.81
Total 78645532.23 65829975.42 12815556.81
Note:
(i) In the year of 2023 the Company repurchased a total of 9355763 B shares through a
centralized bidding process on the Shenzhen Stock Exchange with a total repurchase payment
of HKD 70401771.17 (excluding transaction fees) equivalent to RMB 64340669.42. On 10
May 2024 upon verification and confirmation by the Shenzhen Branch of China Securities
Depository and Clearing Corporation Limited the Company canceled the repurchased
9355763 B shares thereby reducing the "Share Repurchase for Capital Reduction" by RMB
64340669.42.
(ii) As per stated Note 5.27 the Company repurchased restricted stock reducing "Treasury
Stock" by RMB 630258.00. For the year 2024 the reduction in treasury stock related to cash
74FIYTA Precision Technology Co. Ltd. Notes to the financial statements
dividends for restricted stock amounted to RMB 859048.00.(iii) For the year 2024 the
reduction in treasury stock related to cash dividends for restricted stock amounted to RMB
859048.00.
75FIYTA Precision Technology Co. Ltd. Notes to the financial statements
5.30 Other Comprehensive Income
Changes during the reporting period
Less: Items Less: Items
previously previously
31 December recognized in other recognized in Less: Attributable to AttributableItems 2023 Amount other Income to non- 31 December 2024
before tax comprehensiveincome being comprehensive tax
owners of the controlling
reclassified to income being expenses
Company interest
current profit or loss reclassified toretained earnings
(a)Items will not be
reclassified to profit or loss
(b)Items will be
reclassified to profit or loss 19325335.93 -3638541.31 -3638541.31 15686794.62
Including: Exchange
differences on translating 19325335.93 -3638541.31 -3638541.31 15686794.62
foreign operations
Total 19325335.93 -3638541.31 -3638541.31 15686794.62
76FIYTA Precision Technology Co. Ltd. Notes to the financial statements
5.31 Specific Reserves
Items 31 December Increase during the Decrease during the 31 December2023 reporting period reporting period 2024
Safety production
costs 3223158.06 1521112.80 404108.10 4340162.76
5.32 Surplus Reserves
Decrease during
Items 31 December Increase during the 31 December2023 reporting period the reportingperiod 2024
Statutory surplus 213025507.5 213025507.5
reserves 0 0
Others 61984894.00 61984894.00
Total 275010401.5 275010401.50 0
As of 31 December 2024 the Company's cumulative surplus reserve has reached 50% of its
registered capital and therefore no further extraction will be made during current period.
5.33 Retained Earnings
Items 2024 2023
Balance as at the end of last period before
adjustments 1709513385.76 1479706638.53
Adjustments for the opening balance (increase
/(decrease))
Balance as at the beginning of the reporting
period after adjustments 1709513385.76 1479706638.53
Add: net profit attributable to owners of the
parent company for the reporting period 220350184.99 333178102.37
Less: Declaration of ordinary share dividends 162345682.81 103371355.14
Balance as at the end of the reporting period 1767517887.94 1709513385.76
5.34 Revenue and costs of sales
20242023
Items
Revenue Costs of sales Revenue Costs of sales
Principal 3928845057.63 2475847402.83 4553706250.4 2904751241.5activities 9 1
Other activities 11685876.44 350531.60 15983752.50 712233.30
Total 3940530934.07 2476197934.43 4569690002.9 2905463474.89 1
Principal activities by category
Items 2024 2023
77FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Revenue Costs of sales Revenue Costs of sales
Watch Brand Business 721623074.27 236520324.15 797083010.50 263771395.75
Watch Retail Services 2934683059.47 2080768868.69
3470288123.32481853312.9
27
Precision Technology
Business 134469811.50 115312826.08 135950405.45 114733104.70
Leasing Business 138069112.39 43245383.91 150361811.22 44370528.09
Others 11685876.44 350531.60 16006652.50 735133.30
Total 3940530934.07 2476197934.43
4569690002.92905463474.8
91
5.35 Taxes and Surcharges
Items 2024 2023
Urban maintenance and construction
tax 10496860.12 12205585.22
Educational surcharge 7450711.80 8641027.84
Property tax 7672948.68 7512564.92
Stamp duty 2638753.37 3040109.98
Others 3217860.83 4794558.14
Total 31477134.80 36193846.10
5.36 Selling and Distribution Expenses
Items 2024 2023
Employee Compensation 350108585.64 364493305.57
Department store expense and rental 141659138.17 159738493.87
Advertising Exhibition and
Marketing Expenses 143251551.40 146787677.11
Depreciation and amortization 187804323.98 187456893.25
Packaging expenses 8732106.49 10367129.63
Utilities and property management
expenses 22259318.73 22673870.27
Transportation Expenses 5326216.64 5921929.02
Office Expenses 5299644.22 6285406.47
Travel Expenses 6511503.28 8415884.60
Business Entertainment Expenses 3354425.04 4581476.42
Others 8470993.04 7287113.11
Total 882777806.63 924009179.32
5.37 General and Administrative Expenses
78FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Items 2024 2023
Employee Compensation 141263743.91 159074391.51
Depreciation and amortization 21858646.45 23462090.05
Travel Expenses 3444726.00 4773457.90
Office Expenses 3237040.25 3174249.82
Intermediary Agents fees 2072802.52 1917258.68
Utilities Property Management and
Rental Fees 1050016.25 1359636.27
Business Entertainment Expenses 854422.68 1368967.18
Vehicle and Transportation Expenses 1184673.02 1884805.22
Telecommunication expenses 329077.20 368370.99
Others 7982781.89 7976049.62
Total 183277930.17 205359277.24
5.38 Research and Development Expenses
Items 2024 2023
Employee Compensation 38055759.66 43658293.35
Sample and Material Costs 1635339.74 2137565.99
Depreciation and Amortization 4783178.84 4300190.56
Technical Cooperation Fees 3704971.76 2737439.29
Others 7820750.18 4968754.89
Total 56000000.18 57802244.08
5.39 Finance Costs
Items 2024 2023
Interest expenses 10697706.12 12824222.06
Less: Interest income 4925264.78 5722586.39
Net interest expenses 5772441.34 7101635.67
Net foreign exchange losses 1151055.95 1879443.15
Bank charges and others 11001374.05 12488693.95
Total 17924871.34 21469772.77
5.40 Other Income
Items 2024 2023
1. Government grant recognised in other imcome 5480540.76 9105016.49
79FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Items 2024 2023
Including: Government grant related to deferred
income 952785.69 343141.11
Government grant directly recognised in current
profit or loss 4527755.07 9105016.49
2. Others related to daily operation activities and
recognised in other income 2012101.57 2330357.29
Including: Charges of withholding individual
income tax 477697.33 494598.35
Additional Deduction for Input VAT 1534404.24 1835758.94
Total 7492642.33 11435373.78
5.41 Investment Income/(Losses)
Items 2024 2023
Investment income from long-term equity
investments under equity method -955570.46 -5819479.60
Interest income from term deposit 524315.57
Total -431254.89 -5819479.60
5.42 Credit Impairment Losses
Items 2024 2023
Bad debt of notes receivable -659008.68 716798.30
Bad debt of accounts receivable 916474.82 6194108.85
Bad debt of other receivables 9019.82 -83331.33
Total 266485.96 6827575.82
5.43 Asset Impairment Losses
Items 2024 2023
Impairment of inventories -19289865.31 571980.37
5.44 Gains/ (losses) from Disposal of Assets
Items 2024 2023
Gains/(losses) from disposal of
fixed assets 2795633.25 527753.57
Gains/(losses) from disposal of
Right-of-use assets -427816.65 158115.00
Total 2367816.60 685868.57
5.45 Non-operating Income
80FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Items 2024 2023 Recognised in current non-recurring profit or loss
No payables required 1217512.88 1346926.73 1217512.88
Compensation income 1916585.22 3153875.60 1916585.22
Others 489407.21 269704.47 489407.21
Total 3623505.31 4770506.80 3623505.31
5.46 Non-operating Expenses
Items 2024 2023 Recognised in current non-recurring profit or loss
Donations 243626.35 311464.98 243626.35
Fine and penalty for late payment 143706.74 6014.28 143706.74
Payment for breach of agreement 279932.96 37725.30 279932.96
Others 121651.88 504565.54 121651.88
Total 788917.93 859770.10 788917.93
5.47 Income Tax Expenses
(a) Details of income tax expenses
Items 2024 2023
Current tax expenses 67911869.72 88559245.72
Deferred tax expenses -2146386.12 15266916.22
Total 65765483.60 103826161.94
(b) Reconciliation of accounting profit and income tax expenses
Items 2024 2023
Profit before tax 286115668.59 437004264.31
Income tax expense at the statutory /applicable
tax rate 71528917.15 109251066.08
Effect of different tax rate of subsidiaries -2574951.45 -10206789.27
Adjustments of impact from prior period income
tax 440345.72 6187582.94
Effect of income that is exempt from taxation 238892.62 1454869.90
Effect of non-deductible costs expenses or
losses 1160439.96 781125.37
Effect of previously unrecognised deductible
losses recognised as deferred tax assets -172422.26 -337571.86
Effect of deductible temporary differences and
deductible losses not recognised as deferred tax
assets
R&D expenses plus deduction -4855738.14 -4769518.22
81FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Items 2024 2023
Others 1465397.00
Income tax expenses 65765483.60 103826161.94
5.48 Other Comprehensive Income
For details of the other comprehensive income and related tax effect transfer to profit or loss
and adjustment of other comprehensive income please refer to Note 5.30Other Comprehensive
Income.
5.49 Notes to the Statement of Cash Flow
(a) Cash relating to operating activities
(i)Other cash received relating to operating activities
Items 2024 2023
Security deposit 9790425.68 7550296.24
Government grants 4922856.45 8796670.12
Promotion expenses 12351768.55 12561700.18
Interest income 4925264.78 5722586.39
Return of petty cash 3851281.76 7787782.02
Others 13783494.72 25760176.26
Total 49625091.94 68179211.21
(ii) Other cash payments relating to operating activities
Items 2024 2023
Security deposit 8953141.58 11191285.76
Period expenses and others 321439889.86 376446802.93
Total 330393031.44 387638088.69
(b) Cash relating to investing activities
(i)Other cash received relating to investing activities
Items 2024 2023
Withdrawal of time deposits 201839677.57
(ii) Other cash payments relating to investing activities
Items 2024 2023
82FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Items 2024 2023
Purchase of time deposits 231179882.49
(c) Cash relating to financing activities
(i)Other cash payments relating to financing activities
Items 2024 2023
Payment for principal and interest
of lease liabilities 115962403.46 114908744.94
Payment for share buyback 794690.45 83148230.83
Total 116757093.91 198056975.77
(ii) Changes in liabilities arising from financing activities
Items 31 December
Increase in the current period Decrease in the current period 31 December
2023 Changes in Changes in Changes in Changes in 2024
cash non-cash cash non-cash
Short-term 250187763.8 323957187.8 456926871.7
borrowings 7 6 8607074.56 8 1737400.00 124087754.51
Dividend 2058352.24 162345682.8 161618741.9payables 1 1 2785293.14
Non-current
liabilities 66399004.20 113101630.3 115962403.4maturing 2 6 63538231.06
within one year
Lease liabilities 43526352.52 104640569.8 113101630.34 2 35065292.04
Total 362171472.8 323957187.8 388694957.5 734508017.1 114839030.33 6 3 5 2 225476570.75
5.50 Supplementary Information to the Statement of Cash Flows
(a) Supplementary information to the statement of cash flows
Supplementary information 2024 2023
(i) Adjustments of net profit to cash flows from
operating activities:
Net profit 220350184.99 333178102.37
Add: Provisions for impairment of assets 19289865.31 -571980.37
Impairment Loss of Credit -266485.96 -6827575.82
Depreciation of fixed assets Investment
Properties oil and gas asset and productive 42123553.82 41658377.46
biological assets
Depreciation of right-of-use assets 107301685.07 103958386.94
Amortisation of intangible assets 3623865.56 3689183.21
Amortisation of long-term deferred expenses 72228172.82 91039489.52
Losses /(gains) on disposal of fixed assets
intangible assets and other long-term assets -2367816.60 -685868.57
83FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Supplementary information 2024 2023
Losses /(gains) on scrapping of fixed assets
Losses /(gains) on changes in fair value
Finance costs /(income) 10697706.12 10346099.61
Investment losses /(income) 431254.89 5819479.60
Decreases /(increases) in deferred tax assets -1928006.85 15556840.48
Increases /(decreases) in deferred tax liabilities -218379.27 -289924.26
Decreases /(increases) in inventories 114705609.37 82605123.05
Decreases /(increases) in operating receivables 55993621.50 34507754.85
Increases /(decreases) in operating payables -106350875.18 -77781831.49
Others 1117004.70 -3800168.60
Net cash flows from operating activities 536730960.29 632401487.98
(ii)Significant activities not involving cash
receipts and payments:
Conversion of debt into capital
Convertible corporate bonds maturing within one
year
Assets under leases(other than leases under
simplified method)
(iii)Net increases in cash and cash equivalents:
Cash at the end of the reporting period 518954177.49 504629153.71
Less: Cash at the beginning of the reporting
period 504629153.71 313738389.64
Add: Cash equivalents at the end of the reporting
period
Less: Cash equivalents at the beginning of the
reporting period
Net increase in cash and cash equivalents 14325023.78 190890764.07
(b) The components of cash and cash equivalents
Items 31 December 2024 31 December 2023
(i) Cash 518954177.49 504629153.71
Including: Cash on hand 76344.01 178996.87
Cash in bank available for immediate use 516822193.38 503187176.88
Other monetary funds available for
immediate use 2055640.10 1262979.96
(ii) Cash equivalents
Including: Bond investments maturing within three
months
(iii) Cash and cash equivalents at the end of the
reporting period 518954177.49 504629153.71
Including Restricted cash and cash equivalents for
the Company and its subsidiaries 6150258.49 1202601.86
84FIYTA Precision Technology Co. Ltd. Notes to the financial statements
(c) Presented as cash and cash equivalents despite restrictions in scope of application
Items 2024 Reason
The Company's subsidiary FIYTA Hong Kong and
its subsidiary Montres Chouriet SA hold funds in
Cash in bank 6150258.49 accounts located overseas. These funds are subject to
restrictions on repatriation but this does not affect
their daily use.
5.51 Foreign Currency Monetary Items
(a) Foreign currency monetary items at 31 December 2024:
Items Carrying amount at Exchange Carrying amount atforeign currency rate RMB
Monetary funds 1836199.12
Including: USD 143692.62 7.1884 1032920.03
EUR 76.45 7.5257 575.34
HKD 864222.52 0.9260 800270.05
CHF 304.30 7.9977 2433.70
Accounts receivable 7194794.22
Including: USD 476343.23 7.1884 3437188.55
HKD 3828760.82 0.9260 3545585.67
CHF 26433.04 7.9977 212020.00
Other receivables 238586.48
Including: HKD 119458.42 0.9260 110623.28
CHF 16000.00 7.9977 127963.20
Accounts payable 513267.92
Including: HKD 529282.90 0.9260 490137.14
CHF 2892.18 7.9977 23130.78
Other payables 873332.12
Including: HKD 693207.47 0.9260 641937.85
CHF 28932.60 7.9977 231394.27
(b) Overseas business entity
Please refer the Note 3.4 for the details of the main operating locations and functional
currencies of significant overseas operating entities .
5.52 Leases
85FIYTA Precision Technology Co. Ltd. Notes to the financial statements
(a) The Company as a lessee
Items 2024
Expenses for short-term lease under simplified method 1107921.80
Expenses for lease of low value asset (except for short-term lease)
under simplified method
Interest expense of lease liabilities 4389799.99
Variable lease payments not included in lease liabilities recognised in
current profit or loss 77146168.89
Income from subleasing the right-of-use assets
Cash outflows related to leases 194216494.15
Profit or loss in sale and leaseback transaction
(b) The Company as a lessor
(i) Operating lease
A. Lease income
Items 2024
Lease income 138069112.39
Including: income related to variable lease payments not included in lease
receivables
6. RESEARCH AND DEVELOPMENT EXPENDITURES
Items 2024 2023
Employee Compensation 38055759.66 43658293.35
Sample and Material Costs 1635339.74 2137565.99
Depreciation and Amortization 4783178.84 4300190.56
Technical Cooperation Fees 3704971.76 2737439.29
Others 7820750.18 4968754.89
Total 56000000.18 57802244.08
Including：Expensed R&D 56000000.18 57802244.08
expenditures
Capitalized R&D
expenditures
7. INTERESTS IN OTHER ENTITIES
7.1 Interests in Subsidiaries
86FIYTA Precision Technology Co. Ltd. Notes to the financial statements
(a) Composition of corporate group
Percentage of equity
interests by the
Name of subsidiary Principal place Registered Nature of Company (%) Ways ofbusiness
of business Address Direct Indirec
acquisition
t
Shenzhen HARMONY
World Watch Center Shenzhen Shenzhen Commerce 100.00 Incorporated or
Co. Ltd. investment
FIYTA Sales Co. Ltd. Shenzhen Shenzhen Commerce 100.00 Incorporated orinvestment
Shenzhen FIYTA
Precision Technology ManufacturinShenzhen Shenzhen 99.44 0.56 Incorporated or
Co. Ltd. g investment
Shenzhen FIYTA
Technology ManufacturinShenzhen Shenzhen g 100.00
Incorporated or
Development Co. Ltd. investment
HARMONY World
Watch Center(Hainan) Sanya Sanya Commerce 100.00 Incorporated or
Co. Ltd. investment
Shenzhen Xunhang
Precision Technology ManufacturinShenzhen Shenzhen 100.00 Incorporated or
Co. Ltd. g investment
Emile Choureit Timing Incorporated or
(Shenzhen) Ltd. Shenzhen Shenzhen Commerce 100.00 investment
Liaoning Hengdarui Business
Commercial & Trade Shenyang Shenyang Commerce 100.00 combination under
Co. Ltd. common control
Temporal (Shenzhen)
Co. Ltd. Shenzhen Shenzhen Commerce 100.00
Incorporated or
investment
Shenzhen Harmony E- Incorporated or
commerce Co. Ltd. Shenzhen Shenzhen Commerce 100.00 investment
FIYTA (Hong Kong)
Limited Hong Kong Hong Kong Commerce 100.00
Incorporated or
investment
Business
Montres Chouriet SA ManufacturinSwitzerland Switzerland 100.00 combination notg under common
control
7.2 Interests in Joint Arrangements or Associates
(a) Significant associates
Proportion of equity
Principal
Company name Registere Nature of interests by the Measurementplace of d address business methods
Company (%)
business
Direct Indirect
Shanghai Watch
Co. Ltd. Shanghai Shanghai
Commerc
e 25% Equity method
(b) Main financial information of the significant associates
87FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Items 31 December 31 December2024/2024 2023/2023
Current assets 209477074.16 165796119.65
Non-current assets 15193917.74 16753785.07
Total assets 224670991.90 182549904.72
Current liabilities 106724940.61 60781571.60
Non-current liabilities
Total liabilities 106724940.61 60781571.60
Non-controlling interests
Total owner’s equity attributable to parent
company 117946051.29 121768333.12
Share of net assets calculated at the proportion of
equity interests 29486512.82 30442083.28
Adjustment matters 21420524.02 21420524.02
—Goodwill 21420524.02 21420524.02
—Unrealized profit from intragroup transaction
—Others
Carrying amount of investment in the associate 50907036.84 51862607.30
Fair value of publicly quoted equity investment in
associate
Revenue 121182617.88 110947629.04
Net profit/(loss) -3822281.83 -23277918.41
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income -3822281.83 -23277918.41
Dividends received from the associate 500000.00
8. GOVERNMENT GTRANTS
8.1 Liability items that involve government grants
Amount
Items Increase in recognised in Amount Other
presented in Balance as governmen non- recognised changes Balance
the at 31 t grants operating in other during as at 31 Related to
statement December during the income incomeduring the the Decembe
assets or
of financial 2023 reporting during the reporting reporting r 2024
income
position period reporting
period period
period
Deferred 952785.6
income 9 952785.69
Related to
assets
8.2 Government grants recognised in current profit or loss
88FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Items presented in income
statement 2024 2023
Other income 5480540.76 9105016.49
9. RISKS RELATED TO FINANCIAL INSTRUMENTS
Risks related to the financial instruments of the Company arise from the recognition of various
financial assets and financial liabilities during its operation including credit risk liquidity risk
and market risk.Management of the Company is responsible for determining risk management objectives and
policies related to financial instruments. Operational management is responsible for the daily
risk management through functional departments (e.g. credit management department of the
Company reviews each credit sale). Internal audit department is responsible for the daily
supervision of implementation of the risk management policies and procedures and report their
findings to the audit committee in a timely manner.Overall risk management objective of the Company is to establish risk management policies to
minimize the risks without unduly affecting the competitiveness and resilience of the Company.
9.1 Credit Risk
Credit risk is the risk of one party of the financial instrument face to a financial loss because the
other party of the financial instrument fails to fulfill its obligation. The credit risk of the
Company is related to cash and equivalent notes receivable accounts receivables other
receivables and long-term receivables. Credit risk of these financial assets is derived from the
counterparty’s breach of contract. The maximum risk exposure is equal to the carrying amount
of these financial instruments.Cash and cash equivalent of the Company has lower credit risk as they are mainly deposited in
such financial institutions as commercial bank of which the Company thinks with higher
reputation and financial position.For notes receivable accounts receivable accounts receivable financing and other receivables
the Company establishes related policies to control their credit risk exposure. The Company
assesses credit capability of its customers and determines their credit terms based on their
financial position possibility of the guarantee from third party credit record and other factors
(such as current market status etc.). The Company monitors its customers’ credit record
periodically and for those customers with poor credit record the Company will take measures
such as written call shortening or cancelling their credit terms so as to ensure the overall credit
risk of the Company is controllable.(i) Determination of significant increases in credit risk
89FIYTA Precision Technology Co. Ltd. Notes to the financial statements
The Company assesses at each reporting date as to whether the credit risk on financial
instruments has increased significantly since initial recognition. When the Company determines
whether the credit risk has increased significantly since initial recognition it considers based on
reasonable and supportable information that is available without undue cost or effort including
quantitative and qualitative analysis of historical information external credit ratings and
forward-looking information. The Company determines the changes in the risk of a default
occurring over the expected life of the financial instrument through comparing the risk of a
default occurring on the financial instrument as at the reporting date with the risk of a default
occurring on the financial instrument as at the date of initial recognition based on individual
financial instrument or a group of financial instruments with the similar credit risk
characteristics.When met one or more of the following quantitative or qualitative criteria the Company
determines that the credit risk on financial instruments has increased significantly: the
quantitative criteria applied mainly because as at the reporting date the increase in the
probability of default occurring over the lifetime is more than a certain percentage since the
initial recognition; the qualitative criteria applied if the debtor has adverse changes in business
and economic conditions early warning list of customer and etc.(ii) Definition of credit-impaired financial assets
The criteria adopted by the Company for determination of credit impairment are consistent with
internal credit risk management objectives of relevant financial instruments in considering both
quantitative and qualitative indicators.When the Company assesses whether the debtor has incurred the credit impairment the main
factors considered are as following: Significant financial difficulty of the issuer or the borrower;
a breach of contract e.g. default or past-due event; a lender having granted a concession to the
borrower for economic or contractual reasons relating to the borrower’s financial difficulty that
the lender would not otherwise consider; the probability that the borrower will enter bankruptcy
or other financial re-organisation; the disappearance of an active market for the financial asset
because of financial difficulties of the issuer or the borrower; the purchase or origination of a
financial asset at a deep discount that reflects the incurred credit losses.(iii) The parameter of expected credit loss measurement
The company measures impairment provision for different assets with the expected credit loss
of 12-month or the lifetime based on whether there has been a significant increase in credit risk
or credit impairment has occurred. The key parameters for expected credit loss measurement
include default probability default loss rate and default risk exposure. The Company sets up the
90FIYTA Precision Technology Co. Ltd. Notes to the financial statements
model of default probability default loss rate and default risk exposure in considering the
quantitative analysis of historical statistics (such as counterparties’ ratings guarantee method
and collateral type repayment method etc.) and forward-looking information.Relevant definitions are as following:
Default probability refers to the probability of the debtor will fail to discharge the repayment
obligation over the next 12 months or the entire remaining lifetime;
Default loss rate refers to the Company's expectation of the loss degree of default risk exposure.The default loss rate varies depending on the type of counterparty recourse method and priority
and the collateral. The default loss rate is the percentage of the risk exposure loss when default
has occurred and it is calculated over the next 12 months or the entire lifetime;
The default risk exposure refers to the amount that the company should be repaid when default
has occurred in the next 12 months or the entire lifetime. Both the assessment of significant
increase in credit risk of forward-looking information and the calculation of expected credit
losses involve forward-looking information. Through historical data analysis the Company
identifies key economic indicators that have impact on the credit risk and expected credit losses
for each business.The maximum exposure to credit risk of the Company is the carrying amount of each financial
asset in the statement of financial position. The Company does not provide any other guarantees
that may expose the Company to credit risk.For the accounts receivable of the Company the amount of top 5 clients represents 22.77% of
the total (31 December 2023: 21.42%).
9.2 Liquidity Risk
Liquidity risk is the risk of shortage of funds when fulfilling the obligation of settlement by
delivering cash or other financial assets. The Company is responsible for the capital
management of all of its subsidiaries including short-term investment of cash surplus and
dealing with forecasted cash demand by raising loans. The Company’s policy is to monitor the
demand for short-term and long-term floating capital and whether the requirement of loan
contracts is satisfied so as to ensure to maintain adequate cash and cash equivalents.As at 31 December 2024 the maturity profile of the Company’s financial liabilities is as
follows:
Unit: RMB 10000
Items 31 December 2024
91FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Within 1 year 1-2 years 2-3 years Over 3 years
Short-term loans 12408.78
Accounts payable 11553.29
Other payables 10463.85
Non-current liabilities
maturing within one year 6353.82
Lease liabilities 2851.41 655.12
Total 40779.74 2851.41 655.12
9.3 Market Risk
(a) Foreign currency risk
Except for the operations of the Company’s subsidiaries located in Hong Kong and foreign
countries are denominated and settled in HKD USD BPD RMB and SGD other main
operations of the Company are settled in RMB.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 RMB. 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 CHF) remain exposed to exchange rate risk.(i) Please refer to Note 5.51 Foreign Currency Monetary Items for the details of the main
foreign currency risk exposures of the Company’s foreign currency assets and liabilities as at
31 December 2024.
(ii) Sensitivity analysis
As at 31 December 2024 if RMB appreciates or depreciates 5% against USD while all other
risk variables stay unchanged net profit in current year of the Company will increase or
decrease by RMB 394100 (31 December 2023: RMB 129500).(b) Interest rate risk
Interest rate risk of the Company primarily arises from its long-term interest-bearing debts
such as long-term loans and bonds payables etc. Financial liabilities with floating interest rate
make the Company subject to cash flow interest rate risk and financial liabilities with fixed
interest rate make the Company subject to fair value interest rate risk. The Company determines
the relative proportion of the fixed interest contracts and floating interest contracts based on the
current market environment.Finance department of the Company’s headquarter monitors interest rate of the group
continuously. Increase of the interest rate will result in the increase of the cost of new interest-
bearing debts and the interest expense of the unpaid interest-bearing debts with floating rate
and subsequently lead to significant negative impact on the financial performance of the
92FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Company. The management makes adjustment in accordance with the update market condition
in a timely manner.As at 31 December 2024 the company does not have any long-term interest-bearing debt.
10. FAIR VALUE DISCLOSURES
10.1 Assets and Liabilities Measured at Fair Value at 31 December 2024
As at 31 December 2024 the Company does not have financial instruments measured at fair
value.
10.2 Fair Value of Financial Assets or Financial Liabilities which are not Measured at
Fair Value
Financial assets and financial liabilities not measured at fair value include: accounts receivable
short-term borrowings accounts payable long-term borrowings due within one year and equity
instrument investment that does not have public quotation in an active market and its fair value
cannot be measured reliably.The difference between fair value and carrying amount of the above financial assets and
liabilities that not measured at fair value is insignificant.
11. RELATED PARTIES AND RELATED PARTY TRANSACTIONS
Recognition of related parties: The Company has control or joint control of or exercise
significant influence over another party; or the Company and another party are controlled or
jointly controlled by the same third party.
11.1 General Information of the Parent Company
Percentage of
Name of the parent Registered Nature of Registered equity interests
Voting rights
address the business capital in the in the
Company (%) Company (%)
AVIC International
Holdings Limited Shenzhen Commercial 116616.20 40.17 40.17
Details of the parent company
AVIC International Holdings Limited is a subsidiary that 100.00% held indirectly by AVIC
International.(b) Ultimate controlling party of the Company is AVIC.
11.2 General Information of Subsidiaries
Details of the subsidiaries please refer to Notes 7 INTERESTS IN OTHER ENTITIES.
93FIYTA Precision Technology Co. Ltd. Notes to the financial statements
11.3 Associates of the Company
Details of significant associates please refer to Notes 7 INTERESTS IN OTHER ENTITIES.
11.4 Other Related Parties of the Company
Name Relationship with the Company
China Merchants Property Operation & Service Co. Ltd. and its
subsidiaries The associate of the ultimate
(hereinafter referred to as "CMPO and its subsidiaries") controlling party
Aviation Industry Corporation of China and its subsidiaries
(hereinafter referred to as "AVIC and its subsidiaries") Under the same control
The directors managers Chief Financial Officer (CFO) and Secretary
to the Board of Directors Key management personnel
(hereinafter referred to as "key management personnel").
11.5 Related Party Transactions
(a) Purchases or sales of goods rendering or receiving of services
Purchases of goods receiving of services:
Related parties Nature of the transaction(s) 2024 2023
AVIC and its subsidiaries Mall Expenses and GoodsProcurement 16376625.49 13548194.83
CMPO and its subsidiaries Mall Expenses and PropertyManagement Fees 11542080.81 11593446.00
Sales of goods and rendering of services:
Related parties Nature of the transaction(s) 2024 2023
AVIC and its Sales of goods and rendering of 60505031.3
subsidiaries services 46244991.78 9
CMPO and its SSales of goods and Property
subsidiaries Management Fees 2917960.60 3363663.82
(b) Leases
The Company as lessor:
The lessee Type of assets 2024 2023
CMPO and its subsidiaries Buildings 1666400.02 1811657.16
AVIC and its subsidiaries Buildings 1637357.56 2018678.62
The Company as lessee:
2024
The lessor Type of Variable lease Lease paymentassets payments not included for current Interest expense
Increase in
of lease liabilities right-of-usein lease liabilities period assets
CMPO and Building 2692.68 485331.20 11649.16 -100148.57
94FIYTA Precision Technology Co. Ltd. Notes to the financial statements
2024
The lessor Type of Variable lease Lease payment Increase inassets payments not included for current Interest expense
in lease liabilities period of lease liabilities
right-of-use
assets
its s
subsidiarie
s
AVIC and
its Building
subsidiarie s 162868.56 1894.34 -157702.74
s
(Continued)
2023
The lessor Type of Variable lease Lease payment Increase inassets payments not included for current Interest expense
in lease liabilities period of lease liabilities
right-of-use
assets
CMPO and
its Building
subsidiarie s 59899.04 501788.87 6776.94 489781.90
s
AVIC and
its Building
subsidiarie s 323382.81 9642.03
s
(c) Key management personnel compensation
Items 2024 2023
Key management personnel
compensation 14048100.00 14232500.00
(d) Other related party transactions
The deposit balance of our company held at AVIC Finance Company as at 31 December 2024
amounted to RMB 498616224.42 of which the deposit interest received during the year
totaled RMB 755020.47.
11.6 Receivables and Payables with Related Parties
(a) Receivables
31 December 2024 31 December 2023
Items Related parties
Book balance Bad debt Book balance Bad debtprovision provision
Notes
receivable AVIC and its subsidiaries 508273.49 1084525.41 44609.30
Accounts
receivable AVIC and its subsidiaries 2894425.51 281416.75 6528150.44
280698.3
2
Accounts CMPO and its
receivable subsidiaries 183123.05 9156.15
Other
receivables AVIC and its subsidiaries 924947.00 47070.35 841403.00 43495.15
95FIYTA Precision Technology Co. Ltd. Notes to the financial statements
31 December 2024 31 December 2023
Items Related parties
Book balance Bad debtprovision Book balance
Bad debt
provision
Other CMPO and its
receivables subsidiaries 56000.00 2800.00 143990.00 7199.50
(b) Payables
Items Related parties 31 December 2024 31 December 2023
Other payables AVIC and its subsidiaries 358280.00 2186756.74
Other payables CMPO and its subsidiaries 1066456.79 1023487.21
Accounts payable AVIC and its subsidiaries 391.96
Accounts payable CMPO and its subsidiaries 32992.35
Receipts in advance AVIC and its subsidiaries 7500.00 132975.48
12. SHARE-BASED PAYMENTS
12.1 Equity-settled Share-based Payment
Method of determining fair value of equity
instrument on grant date Close price of share on grant date
Evidence to determine the number of exercisable Term of employee service status of target
equity instrument completion and personal performanceassessment
Reasons for significant difference between
current period estimation and prior period Nil
estimation
Accumulated amount charged to capital reserve for
equity settled share-based payment 29604718.40
12.2 Expenses incurred from share-based payment in the reporting period
Expenses on equity
Category of participant settled share-based Expenses on cash settled
payment share-based payment
Some of the Company's directors
supervisors senior executives and key 1695434.85
personnel
13. COMMITMENTS AND CONTINGENCIES
13.1 Significant Commitments
As of the balance sheet date the significant external commitments of the Company include
lease contracts that have been signed and are in progress or are about to be executed along with
their financial impacts. For detailed information please refer to Note 5.25 Lease Liabilities and
Note 5.52 Leases.Except for the commitments mentioned above as of 31 December 2024 the Company has no
other significant commitments that need to be disclosed.
13.2 Contingencies
96FIYTA Precision Technology Co. Ltd. Notes to the financial statements
As at 31 December 2024 the Company has no significant contingencies need to be disclosed.
14. EVENTS AFTER THE REPORTING PERIOD
14.1 Profit Distribution
th th
The proposed profit or In accordance with the resolutions at the 5 Meeting of the 11
dividend distribution refers Board of Directors held on 12 March 2025 the Company will
to the profit or dividend that distribute cash dividends of RMB 4 (tax included) per 10 share to
has been reviewed all shareholders from the undistributed profits based on the total
approved and announced for number of shares eligible for profit distribution for the year end 31
payment. December 2024. No stock dividends will be distributed nor willthere be any conversion of capital reserves into share capital.Note: The profit distribution plan above shall be implemented after being reviewed and
approved by the general meeting of shareholders.
14.2 Others
(a) On 12 March 2025 upon the approval of the resolutions passed at the 5th Meeting of the
11th Board of Directors the Company proposed to apply for the financing facilities not more
than RMB 1.2 billion in 2025 from the banking institutions through various methods of credit
guarantee and mortgage ect. The proposal for the total financing facilities from banks is still
pending approval by the Company's general meeting of shareholders.(b) On 12 March 2025 upon the approval of the resolutions passed at the 5th Meeting of the
11th Board of Directors the Company proposed to apply for a guaranteed loan on behalf of its
wholly-owned subsidiary from banks in 2025 with an actual utilization limit not more than
RMB 300 million. This credit line is included within the Company's actual utilization limit of
RMB 1.2 billion for bank loans applied in 2025. The proposal for the aforementioned guarantee
limit is still pending approval by the Company's general meeting of shareholders.As at 12 March 2025 the Company have not other events after the reporting period need to be
disclosed.
15. OTHER SIGNIFICANT MATTERS
15.1 Segment Information
The Company identifies operating segments according to its internal organization structure
management requirements and internal reporting systems. Then the reportable segments are to
be determined based on the Company’s operating segments:
(a) its business activities are engaged to generate revenue and incur expenses;
(b) its operating results are regularly reviewed by the Company’s management to make
decisions on resources allocation and performance assessment;
(c) its financial conditions operating results cash flow and related accounting information are
97FIYTA Precision Technology Co. Ltd. Notes to the financial statements
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:
(a) The segment income of the operating segment accounts for 10.00% or more of total income
of all segments;
(b) 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.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.
15.2 Others
As at 31 December 2024 the Company does not have other significant matters that require to
disclose.
16. NOTES TO THE MAIN ITEMS OF THE FINANCIAL STATEMENTS OF THE
PARENT COMPANY
16.1 Accounts Receivable
(a) Accounts receivable by aging
Aging 31 December 2024 31 December 2023
Within one year 6238972.29 1875782.07
1-2 years 238812.42 23346.03
2-3 years 319.04
Subtotal 6478103.75 1899128.10
Less: provision for bad debt 1846113.37 76211.49
Total 4631990.38 1822916.61
(b) Accounts receivable by bad debt provision method
31 December 2024
Category Book balance Provision for bad debt Carrying
Amount Proportio Provision amountn (%) Amount ratio (%)
Provision for bad debt recognised 1631798.6 25.19 1631798.66 100.00
98FIYTA Precision Technology Co. Ltd. Notes to the financial statements
31 December 2024
Category Book balance Provision for bad debt Carrying
Amount Proportio Amount Provision amountn (%) ratio (%)
individually 6
Provision for bad debt recognised 4846305.0
by groups 9 74.81 214314.71 4.42 4631990.38
Including: Group 1 4041736.34 62.39 214314.71 5.30 3827421.63
Receivable from Related party in
scope of consolidation 804568.75 12.42 804568.75
Total 6478103.75 100.00 1846113.37 28.50 4631990.38
(Continued)
31 December 2023
Category Book balance Provision for bad debt Carrying
Amount Proportio Provision amountn (%) Amount ratio (%)
Provision for bad debt
recognised individually
Provision for bad debt 1899128.1 1822916.6
recognised by groups 0 100.00 76211.49 4.01 1
Including: Group 1 1898159.02 99.95 76211.49 4.02
1821947.5
3
Receivable from Related party in
scope of consolidation 969.08 0.05 969.08
Total 1899128.10 100.00 76211.49 4.01
1822916.6
Detailed explanation of provision for bad debt:
(i)As at 31 December 2024 accounts receivable with bad debt provision recognised
individually
31 December 2024
Name
Book balance Provision for bad Provision ratio Reason fordebt (%) provision
Other customers 1631798.66 1631798.66 100.00 Expected to beirrecoverable
(ii) As at 31 December 2024 accounts receivable with bad debt provision recognised by group
1
31 December 2024 31 December 2023
Aging Accounts Provision for Provision Accounts Provision for Provisio
receivable bad debt ratio (%) receivable bad debt n ratio(%)
Within 3802604.87 190114.42 5.00 1874812.99 73876.89 3.94
99FIYTA Precision Technology Co. Ltd. Notes to the financial statements
31 December 2024 31 December 2023
Aging Accounts Provision for Provision Accounts Provision for Provisio
receivable bad debt ratio (%) receivable bad debt n ratio(%)
one year
1-2 years 238812.42 23881.24 10.00 23346.03 2334.60 10.00
2-3 years 319.05 319.05 100.00
Total 4041736.34 214314.71 5.30 1898159.02 76211.49 4.02
(c) Changes of provision for bad debt during the reporting period
31 Changes during the reporting period 31
Category December December
2023 Provision
Recovery Elimination Other
or reversal or write-off s 2024
Provision for bad debt 1631798.6 1631798.6
recognised individually 6 6
Provision for bad debt
recognised by groups 76211.49 138103.22 214314.71
Including:Group1 76211.49 138103.22 214314.71
Total 76211.49 1769901.8 1846113.38 7
(d) No accounts receivable written off during the reporting period
(e) Top five closing balances by entity
Balance of accounts Proportion of the balance Provision for bad
Entity name receivable as at 31 to the total accounts debt of accounts
December 2024 receivable (%) receivable
Total of the top five
accounts receivable balances 4594642.18 70.93 1294445.58
at the end of the period
16.2 Other Receivables
(a) Other receivables by aging
Aging 31 December 2024 31 December 2023
Within one year 659558728.69 696320073.42
1-2 years 14177.51 9531.90
2-3 years 9531.90
Over 3 years 40050.00 40050.00
Subtotal 659622488.10 696369655.32
Less: provision for bad debt 56619.62 41235.47
Total 659565868.48 696328419.85
(b) Other receivables by nature
Nature 31 December 2024 31 December 2023
100FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Nature 31 December 2024 31 December 2023
Related party in scope of
consolidation 658724812.91 696041965.52
Deposit and guarantee receivable 119550.00 49581.90
Others 778125.19 278107.90
Subtotal 659622488.10 696369655.32
Less: provision for bad debt 56619.62 41235.47
Total 659565868.48 696328419.85
(c) Other receivables by bad debt provision method
A. As at 31 December 2024 provision for bad debt recognised based on three stages model
Stages Book balance Provision for bad debt Carrying amount
Stage 1 659622488.10 56619.62 659565868.48
As at 31 December 2024 provision for bad debt at stage 1:
Category Book balance Provision Provision forratio (%) bad debt Carrying amount
Provision for bad debt recognised
individually
Provision for bad debt recognised
by groups 659622488.10 0.01 56619.62 659565868.48
Including: Deposit and guarantee
receivable 119550.00 36.83 44025.00 75525.00
Related party in scope of
consolidation 658724812.91 658724812.91
Others 778125.19 1.62 12594.62 765530.57
Total 659622488.10 56619.62 659565868.48
B. As at 31 December 2023 provision for bad debt recognised based on three stages model
Stages Book balance Provision for bad debt Carrying amount
Stage 1 696369655.32 41235.47 696328419.85
As at 31 December 2023 provision for bad debt at stage 1:
Category Book balance Provision Provision forratio (%) bad debt Carrying amount
Provision for bad debt recognised
individually
Provision for bad debt recognised
by groups 696369655.32 0.01 41235.47 696328419.85
Including: Deposit and guarantee
receivable 49581.90 81.74 40526.60 9055.30
Related party in scope of
consolidation 696041965.52 696041965.52
Others 278107.90 0.25 708.87 277399.03
101FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Category Book balance Provision Provision forratio (%) bad debt Carrying amount
Total 696369655.32 41235.47 696328419.85
Basis of provision for bad debt during the reporting period:
For details of recognition criteria and explanation for provision of bad debt by groups please
refer to Notes 3.11
(d) Changes of provision for bad debt during the reporting period
31 Changes during the reporting period 31
Category December Recovery Eliminatio Decembe
2023 Provision or n or write-
Other
r 2024
reversal off s
Provision for bad debt recognised 41235.47 15384.1 56619.6by groups 5 2
(e) No other receivables written off during the reporting period
(f) Top five closing balances by entity
Entity name Balance as at 31 Proportion of the balance toDecember 2024 the total other receivables (%) Provision for bad debt
Total of the top five
other receivables at 655724812.91 99.42
the end of the period.
16.3 Long-term Equity Investments
31 December 2024 31 December 2023
Items Provision Provision
Book balance for Carrying amount Book balance for Carrying amount
impairment impairment
Subsidiaries 1592543885.91 1592543885.91 1581179108.81 1581179108.81
Associates 50907036.84 50907036.84 51862607.30 51862607.30
Total 1643450922.75 1643450922.75 1633041716.11 1633041716.11
(a) Investments in subsidiaries
Provision Provision
31 Increase Decrease for for
Investees December during the during the 31 December impairment impairme
2023 reporting reporting 2024 during the nt at 31period period reporting December
period 2024
ShenzhenHARMONYWorldWatchCenterCo. 609295490.Ltd. 83 596482.79
609891973.
62
ShenzhenHarmonyE-commerceCo.Ltd. 11684484.3 11684484.39 9
ShenzhenFIYTAPrecisionTechnologyCo.Lt 182044461.d. 20 246373.11
182290834.
31
ShenzhenFIYTATechnologyDevelopmentCo 51062891.6.Ltd. 7 97250.00
51160141.6
7
FIYTA(HongKong)Ltd. 137737520. 137737520.00 00
102FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Provision Provision
31 Increase Decrease for for
Investees December during the during the 31 December impairment impairme
2023 reporting reporting 2024 during the nt at 31period period reporting December
period 2024
Temporal(Shenzhen)Co.Ltd. 5000000.00 5000000.00
FIYTASalesCo.Ltd. 456992456. 304726.96 457297183.17 13
LiaoningHengdaruiCommercial&TradeCo.L 36867843.9 36867843.9
td. 6 6
EmileChoureitTiming(Shenzhen)Ltd. 80493960.5 119944.24 80613904.89 3
HARMONYWorldWatchCenter(Hainan)Co. 10000000.0 10000000.0
Ltd. 0 0
ShenzhenXunhangPrecisionTechnologyCo. 10000000. 10000000.0
Ltd. 00 0
Total 158117910 11364777. 1592543888.81 10 5.91
(b) Investments in associates
Changes during the reporting period
31 December Increase Decrease
Gains /(losses) Adjustments
Investees 2023 during the during the
on Changes
reporting reporting investments
of other
comprehensiv in other
period period under the equityequity method e income
Shanghai
Watch Co. 51862607.3
Ltd. 0
-955570.46
(Continued)
Changes during the reporting period Provision for
Investees Declaration of cash 31 December impairment at
dividends or Provision for Others 2024 31 December
distribution of profit impairment 2024
Investees 50907036.84
16.4 Revenue and Cost of Sales
20242023
Items
Revenue Costs of sales Revenue Costs of sales
Principal activities 180681781.85 56887861.74 177350230.18 49729440.87
Other activities 3858500.75 3524696.56
Total 184540282.60 56887861.74 180874926.74 49729440.87
16.5 Investment Income
Items 2024 2023
Investment income from long-term equity investments
under equity method 288278232.76 198000000.00
Investment income from long-term equity investments
under cost method -955570.46 -5819479.60
103FIYTA Precision Technology Co. Ltd. Notes to the financial statements
Items 2024 2023
Total 287322662.30 192180520.40
17. SUPPLEMENTARY INFORMATION
17.1 Details of current non-recurring profit or loss
Items 2024
Gains /(losses) on disposal of non-current assets (including the written-off portion of
provisions for asset impairment) 2367816.60
Government grants (except for government grants which are closely related to the ordinary
course of business of the Company in compliance with national policies and regulations
granted in accordance with the determined standards; and influence the profit and loss on an 5480540.76
ongoing basis) charged to gains or losses for the period
Non-financial business’s gains or losses from fair value change arising from financial
assets and financial liabilities held and gains or losses from disposal of financial assets and
financial liabilities other than effective value protection hedges relating to the Company 524315.57’s
ordinary course of business
Reversal of provision for impairment of individually tested receivables 3753262.84
Other non-operating income/expenses except for items mentioned above 2834587.38
Other profit /(loss) items that meet the definition of non-recurring profit or loss
Total non-recurring profit /(loss) 14960523.15
Less: Income tax effect 3338626.84
Net non-recurring profit /(loss) 11621896.31
Less: net non-recurring profit /(loss) attributable to non-controlling interest
Net non-recurring profit /(loss) attributable to ordinary shareholders 11621896.31
17.2 Return on Net Assets and Earnings Per Share (‘EPS’)
(a) 2024
Weighted average EPS
Profit for the reporting period return on net assets
(%) Basic Diluted
Net profit attributable to ordinary shareholders 6.55 0.5385 0.5378
Net profit attributable to ordinary shareholders
after non-recurring profit or losses 6.21 0.5100 0.5093
(b) 2023
Weighted average EPS
Profit for the reporting period return on net assets
(%) Basic Diluted
Net profit attributable to ordinary shareholders 10.28 0.8082 0.8075
Net profit attributable to ordinary shareholders after
non-recurring profit or losses 9.77 0.7685 0.7678
FIYTA Precision Technology Co. Ltd.Board of Directors
14 March 2025
104
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