Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.FIYTA Precision Technology Co. Ltd.2025 Semi-annual Report
Aug. 23 2025
1Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Section 1 Important notes contents and definitions
The Board of Directors the Board of Supervisors and the directors
supervisors and senior management guarantee the truthfulness accuracy and
completeness of the semi-annual report with no false records misleading
statements or significant omissions and bear individual and joint legal
responsibility.Zhang Xuhua the person in charge of the Company Song Yaoming the CFO
and Jiang Haiming the Financial Manager (Accounting Supervisor) declare to
ensure that the financial content in the semi-annual report is truthful accurate
and complete.All directors have attended the board meeting to review the semi-annual
report.The forward-looking descriptions such as future plans and development
strategies included in this semi-annual report do not constitute the Company's
substantive commitments to investors. Investors are advised to pay attention to
investment risks.The Company has described the existing risks in detail in this report. Please
refer to the section on the risks faced by the Company and the countermeasures
in Section 3 Management discussion and analysis.The Company plans to pay no cash dividend no bonus shares and no
conversion of capital stock with provident funds.This report is prepared in both Chinese and English. In case of any ambiguity
the Chinese version shall prevail.
2Full text of 2025 Semi-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....6
Section 3 Management discussion and analysis ........ 9
Section 4 Corporate governance environment and soc...18
Section 5 Significant events ........................20
Section 6 Changes in shares and shareholders ....... 26
Section 7 Bond-related information ................. 34
Section 8 Financial statement ...................... 35
Section 9 Other data submission ....................170
3Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
List of Reference Documents
1. Financial statements containing the signature and seal of the legal representative the principal in charge of
accounting and the principal of accounting agency.
2. The originals of all the company's documents and announcements publicly disclosed in the media designated by the
CSRC during the reporting period.
3. Full text of 2025 semi-annual report with the signature of the legal representative.
4Full text of 2025 Semi-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.Shentian Technology Holdings refers to Shentian Technology Holdings (Shenzhen) Co.Ltd.AVIC Finance refers to AVIC Finance Co. Ltd.Phase II restricted stock incentive plan refers to 2018 A-Shares Restricted Stock Incentive Plan(Phase II)
Current reporting period reporting period refers to From Jan. 1 2025 to Jun. 30 2025
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Section 2 Company profile and key financial indicators
I. Company Profile
Abbreviation FIYTA FIYTA B Stock code 000026 200026
Stock name before change (if
any) None
Stock listing stock exchange Shenzhen Stock Exchange
Chinese name FIYTA Precision Technology Co. Ltd.Chinese short name of the
Company (if any) The FIYTA company
Foreign name of the Company (if
any) FIYTA Precision Technology Co. Ltd.Foreign short name of the
Company (if any) FIYTA
Legal representative Zhang Xuhua
2. Contact person and contact information
Secretary of the Board of Directors Securities affairs representative
Name Song Yaoming Xiong Yaojia
Contact address Floor 20 Fiyta Technology Building Gaoxin 18th Floor Fiyta Technology Building GaoxinSouth 1st Road Nanshan District Shenzhen South 1st Road Nanshan District Shenzhen
TEL 0755-86013669 0755-86013669
Fax 0755－83348369 0755－83348369
E-mail investor@fiyta.com.cn investor@fiyta.com.cn
3. Other circumstances
1. Company contact information
The Company's registered address office address and zip code website e-mail etc. remained unchanged during the
reporting period. For details please refer to the 2024 Annual Report.
2. Information disclosure and storage location
The website of the stock exchange and the name and address of the media where the company discloses the semi-
annual report and the place where the company's semi-annual report is prepared remained unchanged during the
reporting period. For details please refer to the 2024 Annual Report.
3. Other relevant information
Not applicable
6Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
4. Main accounting data and financial indicators
Does the Company need to retrospectively adjust or restate the accounting data in previous years
No
Change in the current
Current reporting Same period last year reporting period comparedperiod to the same period last
year
Operating income (yuan) 1784131937.23 2076397911.32 -14.08%
Net profit attributable to
shareholders of the listed company 82445500.03 147138482.34 -43.97%
(yuan)
Net profit after deducting non-
recurring profits and losses
attributable to shareholders of the 78377262.19 140445221.81 -44.19%
listed company (yuan)
Net cash flows from operating
activities (yuan) 251490807.07 136530796.52 84.20%
Basic earnings per share
(yuan/share) 0.2034 0.3568 -42.99%
Diluted earnings per share
(yuan/share) 0.2034 0.3564 -42.93%
Return on weighted average net
assets 2.41% 4.36% -1.95%
Change at the end of the
At the end of current At the end of the current reporting period
reporting period previous year compared to the end of the
previous year
Total assets (yuan) 3878686383.99 4007690717.02 -3.22%
Net assets attributable to
shareholders of the listed company 3333609683.39 3391843200.61 -1.72%
(yuan)
5. Differences in accounting data under domestic and overseas accounting
standards
1. Differences in net profit and net assets in the financial reports disclosed in accordance with
international accounting standards and Chinese accounting standards
Not applicable
2. Differences in net profit and net assets in the financial reports disclosed in accordance with
overseas accounting standards and Chinese accounting standards
Not applicable
6. Non-recurring gains and losses items and amounts
Unit: yuan
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Item Amount Notes
Profit or loss from disposal of non-
current assets (including the writing-
off part for which the asset -424407.32
impairment provision is made)
Government grants recognized in
current profit and loss (excluding
those closely related to the
Company's normal operations in
compliance with national policies 1509835.03
entitled in accordance with set
standards and having a sustained
impact on the Company's profit and
loss)
Profit or loss on fair value changes
arising from the holding of financial
assets and financial liabilities by non-
financial enterprises and the profit or
loss arising from the disposal of 247499.84
financial assets and liabilities except
for effective hedging operations
associated with COOEC's normal
operations
Reversal of receivables tested for
impairment separately provision for 2807146.61
impairment
Non-operating revenue and
expenses other than the above- 984766.23
mentioned items
Less: income tax effects 1056602.55
Total 4068237.84
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
8Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Section 3 Management discussion and analysis
1. Main business of the Company during the reporting period
(1) Main business
The Company was founded and developed from aviation precision technology and material technology 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""ADASHER" and authorized
cooperative brand “Beijing” and “Jeep” 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 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.
(2) Its industry situation
During the reporting period the total retail sales of domestic consumer goods in the first half of the year
announced by the National Bureau of Statistics increased by 5.0% YoY and the consumer market showed a pattern of
overall steady growth combined with structural differentiation. From the perspective of consumption structure
stimulated by a series of policies and measures the consumption of large goods and services achieved rapid growth
and optional consumption showed a differentiated performance with luxury consumption under significant pressure; In
terms of consumption preferences the demand for self-pleasing consumption and emotional consumption rose rapidly
driving the development of the new consumption market. At the same time consumers became more rational towards
traditional consumption and paid more attention to cost-effectiveness and practicality; From the perspective of
consumption channels offline channels continued to differentiate: traditional department stores and specialty stores
grew slowly while online channels maintained rapid growth. AI technology empowered the improvement of channel
9Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
operation efficiency and consumption experience. Against this backdrop the domestic traditional watch consumption
market remained under pressure. The Federation of the Swiss Watch Industry announced that the cumulative export
value to Chinese mainland in the first half of the year decreased by 18.7% year-on-year. Sales of watches at all price
points declined overall and competition among brands intensified with significant differentiation. The company will
actively adjust its operation and management measures in product channel marketing and other aspects to enhance
the core competitiveness of the traditional watch business; adhere to technological innovation accelerate the
development of strategic emerging industries and continue to promote transformation and upgrading.
2. 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 the influence and market share of the 'FIYTA' brand continued to increase.(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.(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 enhanced the technical strength and core capabilities of its precision technology
business through new process development equipment upgrades and the introduction of key technical talents.(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 continued to promote digital transformation through digital retail system optimization operation management
system upgrades and AI application implementation.(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. During the reporting period the company employee Bei Jinghui was awarded the
title of 'National Light Industry Model Worker' for his outstanding performance in the watch industry.
3. Analysis of main business
Overview
10Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
In the first half of 2025 the company adhered to the principle of high-quality development continued to deepen
the watch business consolidated its leading position in the domestic watch market and enhanced core
competitiveness. It accelerated the development of strategic emerging industries and enhanced core functions. During
the reporting period in the environment of continuous pressure on the domestic watch consumer market the
Company achieved operating income of RMB 1784.1319 million yuan a YoY decrease of 14.08% with the total profit
of RMB 105.5607 million yuan down 45.50% YoY; The Company steadily promoted cost reduction and efficiency
improvement strengthened risk prevention and control with an asset-liability ratio of 14.05% at the end of the period
and a net cash flow from operating activities of RMB251.4908 million making overall operational risks controllable.Meanwhile the Company remained steadfast in its development confidence and valued shareholder returns having
completed the 2024 annual cash dividend plan of distributing a cash dividend of RMB4.00 (including tax) per 10
shares to all shareholders.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 FIYTA brand based on its positioning as a high-quality Chinese watch brand
featuring aerospace watches focused on aerospace genes and Chinese culture deeply explored the brand's core
and launched aerospace-themed products such as the 'Yun-20' fortune model and the 'Little Spaceship' three-
dimensional time-reading model. It also created series products like the 'Little Gold Watch' fortune butterfly model and
the 'Everything Goes Well' Song Dynasty porcelain model that integrate Chinese aesthetics and intangible cultural
heritage elements to strengthen product competitiveness with differentiated features. It continuously conducted online
and offline integrated marketing and promoted the continuous growth of brand visibility through rich brand events such
as appearing at Shanghai Fashion Week the return of 'Shenzhou 19' the launch of 'Shenzhou 20' and Gao
Yuanyuan's Oriental Selection Live Broadcast.(II) Continuously optimize channel structure and operation system promote online and offline
coordinated development
During the reporting period the FIYTA brand continued to optimize the channel structure and business model
offline strengthened the layout of high-quality channels such as mainstream shopping centers and enhanced the
refined operation capability of self-operated stores by focusing on member operations new media operations and
store broadcasting. Online relying on aerospace culture and Chinese cultural elements it created differentiated
blockbuster products and a live-streaming matrix. During the "618" shopping festival the e-commerce GMV achieved
counter-trend growth with multiple products ranking among the top in the sales lists of major platforms. The online and
offline synergy promoted the increase of market share."Harmony" actively expanded cooperation with medium and high-end brands developed offline channels with
high quality and orderly promoted the integration of channels and brand resources; It continued to deepen the
excellent operation system strengthened the lean operation of offline channels and promoted the integrated
development of online and offline businesses.(III) Continue to promote the exploration of new businesses and actively cultivate strategic emerging
industries
During the reporting period the company continuously enhanced process technology and precision manufacturing
capabilities in its precision technology business advancing market and customer development. The company plans to
acquire a controlling stake in Shaanxi Changkong Gear Co. Ltd. (hereinafter referred to as 'Changkong Gear') to
strengthen the technical expertise and core capabilities in precision technology. The smart wearable business
continued to promote product function innovation and software and hardware technology upgrades.
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(IV) Continue to increase investment in scientific and technological innovation and strengthen the
strength of precision technology
During the reporting period the company accelerated the development of high-level movements and key
components and continuously deepened the application of aerospace materials innovative materials and processes.It increased investment in research and development resources focusing on key transformation and upgrading
directions of precision technology business.(V) Promote AI empowerment and digital application to accelerate digital transformation
During the reporting period the company promoted the integration of AI technology with digital retail systems
CRM systems SAP systems and other platforms in core areas such as digital retail and business management
empowering business development and efficiency improvement.(VI) Solidly promote cost reduction and efficiency improvement to enhance risk resistance capability
During the reporting period the company fully deepened the special work of cost reduction and efficiency
improvement focusing on cost control resource allocation optimization and operational efficiency improvement to
enhance its risk resistance capability.YoY changes in main financial data
Unit: yuan
Current reporting Same period last YoY
period year increase/ Reason for changedecrease
Operating revenue 1784131937.23 2076397911.32 -14.08% Not applicable
Operating costs 1149808611.57 1304482455.55 -11.86% Not applicable
Selling expenses 392808032.65 449785002.40 -12.67% Not applicable
Administrative
expenses 89971510.01 89213932.54 0.85% Not applicable
Mainly due to the reduction of
Financial expenses 5640080.29 9622797.59 -41.39% loan interest and the effect ofexchange gains during the
reporting period.Income tax expenses 23115165.73 46545035.11 -50.34% Mainly due to a decrease in totalprofit during the reporting period.R&D investment 33087871.33 27525998.33 20.21% Not applicable
Net cash flows from Mainly due to reduced inventory
operating activities 251490807.07 136530796.52 84.20% purchases and period expensesduring the reporting period.Net cash flows from Mainly due to changes in the
the investing -40364724.39 -83646605.14 51.74% term of fixed deposits during the
activities reporting period.Net cash flows from
financing activities -191150697.48 -153122505.66 -24.84% Not applicable
Mainly due to reduced inventory
Net increase of cash
and cash equivalents 20352756.48 -100273144.58 120.30%
purchases period expenses
and the impact of fixed deposits
during the reporting period.Significant changes in the company's profit composition or profit source during the reporting period
Not applicable
Composition of revenue
12Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Unit: yuan
Current reporting period Same period last year YoY
Amount Proportion in
increase/d
revenue Amount
Proportion in
revenue ecrease
Total
operating 1784131937.23 100% 2076397911.32 100% -14.08%
income
By industry
Watch
business 1659610629.02 93.02% 1910698928.67 92.03% -13.14%
Precision
technology 60465539.30 3.39% 88908749.85 4.28% -31.99%
business
Leasing
business 57835071.51 3.24% 70906534.63 3.41% -18.43%
Others 6220697.40 0.35% 5883698.17 0.28% 5.73%
By product
Watch brand
business 315109112.17 17.66% 384620560.57 18.52% -18.07%
Full service
business of
luxury 1344501516.85 75.36% 1526078368.10 73.51% -11.90%
watches
Precision
technology 60465539.30 3.39% 88908749.85 4.28% -31.99%
business
Leasing
business 57835071.51 3.24% 70906534.63 3.41% -18.43%
Others 6220697.40 0.35% 5883698.17 0.28% 5.73%
By region
South China 806381444.29 45.20% 985168650.24 47.44% -18.15%
Northwest
China 248784340.56 13.94% 299728304.42 14.44% -17.00%
North China 51669800.71 2.90% 67039768.59 3.23% -22.93%
East China 228872072.10 12.83% 258928020.96 12.47% -11.61%
Northeast
China 162388661.36 9.10% 175024033.83 8.43% -7.22%
Southwest
China 286035618.21 16.03% 290509133.28 13.99% -1.54%
The industry product or region situation that accounts for more than 10% of the company's revenue or operating profit
Unit: yuan
Increase or Increase/decrease in Increase/decrdecrease in ease in gross
Gross revenue operating
Operating revenue Operating costs profit compared costs
profit rate
compared comparedrate with the same with the same
period last with the same period last
year period lastyear year
By industry
Watch
business 1659610629.02 1077694608.63 35.06% -13.14% -10.82% -1.70%
Leasing 57835071.51 16661369.87 71.19% -18.43% -9.70% -2.79%
13Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
business
By product
Watch
brand 315109112.17 97070191.43 69.19% -18.07% -19.81% 0.66%
business
Full
service
business 1344501516.85 980624417.20 27.06% -11.90% -9.82% -1.69%
of luxury
watches
Leasing
business 57835071.51 16661369.87 71.19% -18.43% -9.70% -2.79%
By region
South
China 806381444.29 506821115.78 37.15% -18.15% -18.76% 0.48%
Northwest
China 248784340.56 159847879.10 35.75% -17.00% -12.83% -3.07%
North
China 51669800.71 29754508.68 42.41% -22.93% -17.52% -3.78%
East
China 228872072.10 153763476.61 32.82% -11.61% -5.84% -4.11%
Northeast
China 162388661.36 113628484.29 30.03% -7.22% -1.99% -3.73%
Southwest
China 286035618.21 185993147.11 34.98% -1.54% 2.25% -2.41%
If the statistical caliber of the company's main business data is adjusted during the reporting period the company's
latest period main business data adjusted according to the caliber at the end of the reporting period
Not applicable
4. Analysis of non-main business
Not applicable
5. Analysis of assets and liabilities
1. Major changes in the composition of assets
Unit: yuan
At the end of current reporting End of last year Increaseperiod or Significant
decrease changes
Proportion in Proportion in inAmount Notestotal assets Amount total assets proportio
n
Monetary
funds 539306933.97 13.90% 518954177.49 12.95% 0.95%
Not
applicable
Accounts
receivable 295552172.33 7.62% 260152834.43 6.49% 1.13%
Not
applicable
Contract
assets 0.00 0.00% 0.00 0.00% 0.00%
Not
applicable
Inventories 1844734053.46 47.56% 1984486969.74 49.52% -1.96% Notapplicable
14Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Investment
properties 294173788.77 7.58% 301002364.41 7.51% 0.07%
Not
applicable
Long-term
equity 51401581.98 1.33% 50907036.84 1.27% 0.06% Not
investments applicable
Fixed assets 368564629.53 9.50% 377568144.41 9.42% 0.08% Notapplicable
Construction
in progress 0.00 0.00% 0.00 0.00% 0.00%
Not
applicable
Right-of-use
assets 82724677.42 2.13% 98437976.41 2.46% -0.33%
Not
applicable
Short-term
borrowings 140084055.54 3.61% 124087754.51 3.10% 0.51%
Not
applicable
Contract Not
liabilities 15914217.86 0.41% 12605722.95 0.31% 0.10% applicable
Long-term
borrowings 0.00 0.00% 0.00 0.00% 0.00%
Not
applicable
Lease liability 26793779.93 0.69% 35065292.04 0.87% -0.18% Notapplicable
2. Main overseas assets status
Not applicable
3. Assets and liabilities measured at fair value
Not applicable
4. Restrictions status on assets rights as of the end of the reporting period
Not applicable
6. Analysis of investment status
1. General situation
Investment amount during the Investment amount in the same
reporting period (yuan) period of last year (yuan) Change range
0.000.000.00%
2. Significant equity investment acquired during the reporting period
Not applicable
3. Significant non-equity investments in progress during the reporting period
Not applicable
15Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
4. Investment in financial assets
(1) Securities investment situation
Not applicable
(2) Derivatives investment situation
Not applicable
5. Use of raised funds
Not applicable
7. Sale of major assets and equity
1. Sale of major assets
Not applicable
2. Sale of significant equity
Not applicable
8. Analysis of major holding and participating companies
Major subsidiaries and joint-stock companies with an impact of more than 10% on the company's net profit
Unit: yuan
Name of
the Compan Main Registere Total Net assets Operating Operating
company y type business d capital assets revenue profit
Net profit
Purchase
Shenzhen and sale of
Harmony clocks
World Subsidiar watches 6000000 1876497 1191373 1297382 8775603 6693481
Watch ies and spare 00.00 588.49 188.19 547.52 7.36 3.99
Centre parts and
Co. Ltd. maintenanc
e services.Design
R&D and
FIYTA
Sales Co. Subsidiar
sales of
clocks and 4500000 4076178 3290914 1976428 7510593. 6318748.Ltd. ies watches 00.00 61.09 42.71 58.31 10 98
and spare
parts.Shenzhen Manufactur
FIYTA Subsidiar e clocksPrecision and 1800000 2839958 2106183 1172347
--
ies 00.00 62.39 04.73 35.66 1251872 7233524.Technolog watches 9.85 79
y Co. Ltd. and spare
16Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
parts.Shenzhen Production
FIYTA Subsidiar and
STD Co. ies processing
5000000205586317147946660777727295.6
of precision 0.00 32.09 60.13 5.00
15221.002
Ltd. spare parts.Trade and
FIYTA investment
(HONG Subsidiar in watches 1377375 2768511 2698944 2919294 7626028. 5402013.KONG) ies clocks and 20.00 62.20 52.02 8.36 31 91
LIMITED accessories.Emile Design
Chouriet R&D and
Horologe Subsidiar sales of 4135520 1220190 5503682 2766220 261496.4 468078.8
(Shenzhe ies clocks andwatches 0.00 56.21 5.16 8.00 2 6n) Co.Ltd. and spareparts.Acquisition and disposal of subsidiaries during the reporting period
Not applicable
Description of main holding and participating companies
Not applicable
9. Structured entities controlled by the company
Not applicable
10. Risks faced by the company and countermeasures
1. Consumer market risk
Currently the domestic consumer market is still moving forward with differentiation and the company faces
market risks such as weakened demand for traditional watches and shifts in consumer preferences. On one hand the
company will firmly establish its brand positioning and continuously strengthen brand building and differentiation to
gain recognition from target consumer groups; deepen refined channel operations enhance consumer stickiness and
boost market share; seize market opportunities and actively expand overseas and duty-free market businesses. On
the other hand the company will accelerate the development of strategic emerging industries and continuously
promote transformation and upgrading.
2. Acquisition risk
Currently the preliminary work for the company's proposed acquisition of Changkong Gear's controlling stake is
still underway. The final acquisition plan is yet to be determined and requires necessary decision-making and approval
procedures from all parties with uncertainty about its completion. The company will orderly advance the related work
of this transaction to facilitate smooth project implementation.XI. Formulation and implementation of market value management system and
valuation boost plan
Whether the Company has established a market value management system.No
17Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Whether the Company has disclosed plans for valuation boost.No
XII. 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
Section 4 Corporate governance environment and society
1. Changes in Directors Supervisors and Senior Management of the company
There was no change in the company's Directors Supervisors and Senior Management during the reporting period.For details please refer to the 2024 Annual Report.
2. Profit distribution and conversion of provident funds into capital stock during
the reporting period
The Company plans to pay no cash dividend no bonus shares and no conversion of capital stock with provident funds
for the semi-annual period.
3. 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 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.
2. Implementation of employee stock ownership plan
Not applicable
18Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
3. Other employee incentive measures
Not applicable
IV. Environmental information disclosure
Whether the listed company and its major subsidiaries are included in the legally required environmental information
disclosure list
No
V. Social responsibility
The Company has been actively fulfilling social responsibilities over the years. For the latest 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.
19Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Section 5 Significant events
1. The company's actual controller shareholders related parties acquirers and
the company itself committed to fulfilling all commitments to relevant parties
during the reporting period with any outstanding commitments as of the end of
the reporting period either fulfilled or overdue.Not applicable
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
4. Appointment and dismissal of accounting firms
Whether the semi-annual financial report has been audited
No
5. Explanation of the Board of Directors and the Board of Supervisors on the "non-
standard audit report" of the accounting firm during the reporting period
Not applicable
6. Explanation of the Board of Directors on the "non-standard audit report" of the
previous year
Not applicable
7. Matters relating to bankruptcy reorganization
Not applicable
8. Litigation matters
Not applicable
9. Penalties and rectification
Not applicable
20Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
10. Integrity status of the company and its controlling shareholders and actual
controllers
Not applicable
11. Major related party transactions
1. Related party transactions related to daily operations
Not applicable
2. Related party transactions arising from the acquisition or sale of assets or equities
Not applicable
3. Related party transactions of joint external investment
Not applicable
4. Related claims and debts
Not applicable
5. Transactions with related financial companies
Deposit business
Amount in the current
period
Maximum Total
daily Deposit Beginning Total Ending
Related party Relationsh
withdrawal
deposit limit interest rate balance deposits in balance
ip (RMB100 the current amount in (RMB1000(RMB'0000 Scope 00) period the current 0))
(RMB1000 period
0) (RMB10000)
Controlled
AVIC by the
Finance same 100000 0.15%-1.25% 49861 285571 283883 51549ultimate
party
Loan business
Amount in the current
period
Loan limit Loan Beginning Total loan
Total Ending
Related party Relationsh (RMB1000 interest rate balance amount in
repayment balance
ip 0) (RMB1000
amount in (RMB1000
Scope the current0) period the current 0)
(RMB1000 period
0) (RMB10000)
21Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Controlled
by the Not higher
AVIC Finance same 80000 than 1YLPR 0 0 0 0ultimate
party interest 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 5th meeting of the 11th Board of Directors held on March 12 2025 and the 2024 Annual Meeting of
Shareholders convened on April 10 2025 approved the proposal regarding anticipated routine related-party
transactions for the year 2025. During the reporting period the cumulative transaction amount of the company's
related transactions relating to daily operations was within the annual estimated range.Inquiry related to the disclosure website of interim report on major related transactions
Disclosure date of
Name of temporary announcement provisional Disclosure of website name in
announcement temporary announcement
Announcement of Resolutions of the Fifth Meeting of
the Eleventh Board of Directors (2025-005) March 14 2025 http://www.cninfo.com.cn/
Announcement on Prediction of Daily Related Party
Transactions for the Year 2025 (2025-009) March 14 2025 http://www.cninfo.com.cn/
Announcement on Resolutions of 2024 Annual Meeting
of Shareholders (2025-014) Apr. 11 2025 http://www.cninfo.com.cn/
12. Major contracts and their performance
1. Trusteeship contracting and leasing matters
(1) Trusteeship
Not applicable
(2) Contracting
Not applicable
(3) Leasing
Not applicable
22Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
2. Major guarantee
Unit: RMB'0000
External guarantees provided by the company and its subsidiaries (excluding guarantees provided to subsidiaries)
Announ Whethe
Name cementdisclosu Actual Counter
r the Whethe
of re date Guarant Actual guarant Type of Collater - Guarant
perform r to
guarant ance guarant
ee related ee limit date eed
guarant al (if guarant ee
to amount ee any) ee (if period
has ee for a
object been relatedguarant any) complet party
ee limit ed
Not applicable
Total amount of Total actual
external guarantee amount of external
approved during 0 guarantee during 0
the reporting the reporting
period (A1) period (A2)
Total amount of
external guarantee Total actual
approved at the external guarantee
end of the 0 balance at the end 0
reporting period of the reporting
(A3) period (A4)
Guarantees of COOEC for subsidiaries
Announ Whethe
Name cement r the Whethe
of disclosu Actual
Counter perform r to
guarant re date Guarant Actual guarant
Type of Collater - Guarant ance guarant
ee related ee limit date eed
guarant al (if guarant ee has ee for a
object to amount
ee any) ee (if period been related
guarant any) complet party
ee limit ed
The
secured
Shenzh party
en provide
Harmon Joint s
y World Mar. Decem liability counter
Watch 14 30000 ber 30 10000 guarant - 1 year No No
Centre 2024 2024 ee guarant
Co. ee
Ltd. startingfrom
May 7
2025
Total amount of Total actual
guarantees amount of
approved for guarantees
subsidiaries during 30000 provided to 0
the reporting subsidiaries during
period (B1) the reportingperiod (B2)
Total approved 30000 Total actual 10000
23Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
guarantee limit for guarantee balance
subsidiaries at the for subsidiaries at
end of the the end of the
reporting period reporting period
(B3) (B4)
Guarantees provided by subsidiaries to subsidiaries
Announ Whethe
Name cement r the Whethe
of disclosu Actual
Counter perform r to
guarant re date Guarant Actual guarant
Type of Collater - Guarant
related ee limit date eed guarant al (if guarant ee
ance guarant
ee to amount ee any) ee (if period
has ee for a
object guarant any)
been related
complet party
ee limit ed
Not applicable
Total amount of Total actual
guarantees amount of
approved for guarantees
subsidiaries during 0 provided to 0
the reporting subsidiaries during
period (C1) the reportingperiod (C2)
Total approved Total actual
guarantee limit for guarantee balance
subsidiaries at the 0 for subsidiaries atend of the the end of the 0
reporting period reporting period
(C3) (C4)
Total amount of corporate guarantees (i.e. the total of the top three items)
Total amount of Total actual
guarantee amount of
approved during
the reporting 30000
guarantee during
the reporting 0
period period
(A1+B1+C1) (A2+B2+C2)
Total approved Total actual
guarantee limit at guarantee balance
the end of the 30000 at the end of the 10000
reporting period reporting period
(A3+B3+C3) (A4+B4+C4)
The proportion of actual total amount of
guarantee (i.e. A4+B4+C4) in the 3.00%
company's net assets
Including:
Balance of guarantees provided to
shareholders actual controllers and their 0
related parties (D)
Balance of debt guarantee directly or
indirectly provided to the guaranteed
object with the asset/liability ratio 0
exceeding 70% (E)
Total amount of guarantee exceeding
50% of net assets (F) 0
24Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
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 Not applicable
assume joint and several liability during
the reporting period (if any)
Description of external guarantee
provided in violation of prescribed Not applicable
procedures (if any)
Specific description of the composite guarantee
Not applicable
3. Entrust financing
Not applicable
4. Other major contracts
Not applicable
XIII. Explanation of other significant matters
1. Proposed equity acquisition and related party transaction
Approved by the seventh meeting of the eleventh board of directors of the company the company signed the
"Equity Acquisition Intent Agreement" with Hanzhong Hanhang Electromechanical Co. Ltd. on June 4 2025. The
company intends to acquire all or part of the controlling stake in Changkong Gear by means of cash (hereinafter
referred to as "this acquisition"). This acquisition constitutes a related party transaction. According to preliminary
estimates it is not expected to constitute a major asset reorganization. For details please refer to the "Announcement
on Signing Equity Acquisition Intent Agreement and Related Party Transaction 2025-018" disclosed by the company
on www.cninfo.com.cn on June 5 2025. As of the disclosure date of this report the company and all parties to the
transaction are promoting the preliminary work related to this acquisition. The final acquisition plan has not yet been
determined and is subject to the necessary decision-making and approval procedures of all parties. There is
uncertainty as to whether this acquisition can be completed eventually.
14. Major events of the company's subsidiaries
Not applicable
25Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Section 6 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 conver
Number Ratio IPO don sion of Others Sub-total Number Ratio
atio provid
n ent
funds
I.Restricted 2475720 0.61% 0 0 0 -1855630 -1855630 620090 0.15%
shares
1. State-
owned 0 0.00% 0 0 0 0 0 0 0.00%
shares
2. State-
owned
legal
person 0 0.00% 0 0 0 0 0 0 0.00%
shareholdin
g
3. Other
domestic
shareholdin 2475720 0.61% 0 0 0 -1855630 -1855630 620090 0.15%
g
Includi
ng:
domestic
legal 0 0.00% 0 0 0 0 0 0 0.00%
person
shareholdin
g
Domes
tic natural
person 2475720 0.61% 0 0 0 -1855630 -1855630 620090 0.15%
shareholdin
g
4.
Foreign
shareholdin 0 0.00% 0 0 0 0 0 0 0.00%
g
Includi
ng: 0 0.00% 0 0 0 0 0 0 0.00%
overseas
legal
26Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
person
shareholdin
g
Overs
eas natural
persons 0 0.00% 0 0 0 0 0 0 0.00%
shareholdin
g
II. Non-
restricted 403288287 99.39% 0 0 0 1855630 1855630 405143917 99.85%
shares
1. RMB
ordinary 362707353 89.39% 0 0 0 1855630 1855630 364562983 89.85%
shares
2.
Domestic
listed 40580934 10.00% 0 0 0 0 0 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 of 100.00405764007 0 0 0 0 0 405764007 100.00%
shares %
Reasons for change in shares
1. During the reporting period due to the adjustment of the transferable quota for incumbent senior management
250500 shares with sales restrictions were increased (corresponding to a reduction of unrestricted shares with the
total capital stock remaining unchanged);
2. During the reporting period 2047420 A-share restricted shares in the third restriction-lifting period of the
company's Phase-II restricted stock incentive plan were lifted from restrictions and listed for trading reducing the
number of restricted shares by 2047420; The transferable quota for outgoing senior executives was adjusted
reducing the number of restricted shares by 58710. In total the aforesaid adjustments reduced the number of
restricted shares by 2106130 (with a corresponding increase in unrestricted shares and no change in the total share
capital).For the above reasons as of the end of the reporting period the company's total restricted shares decreased by
1855630 while the total unrestricted shares increased by 1855630 with the total share capital of the company
remaining unchanged.Approval of change in shares
As approved at the fourth meeting of the eleventh Board of Directors the conditions for lifting the restrictions on
the third restriction-lifting period of the company's Phase-II restricted stock incentive plan have been met. In
accordance with the authorization granted by the first extraordinary shareholders' meeting in 2021 the company's
Board of Directors will handle the matter of lifting the restrictions on 2047420 A-share restricted shares in accordance
with relevant regulations.Transfer of change in shares
27Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Not applicable
Implementation progress of share repurchase
Not applicable
The implementation progress of the reduction of repurchased shares through centralized bidding
Not applicable
The impact of the share changes on financial indicators such as basic earnings per share and diluted earnings per
share for the most recent year and period as well as net assets per share attributable to the company's ordinary
shareholders is as follows:
Not applicable
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 restricted
Number of
Shareholder's restricted Reason for Date of
name shares at the
shares shares
released in increased in shares at the restricted restrictedbeginning of
the period the current the current
end of the sales sales released
period period period
Unlock in
accordance
with the
relevant laws
Pan Bo 172537 50100 50100 172537 Executivelocked shares andregulations on
locking shares
by senior
executives.Unlock in
accordance
with the
relevant laws
Li Ming 120067 50100 50100 120067 Executivelocked shares andregulations on
locking shares
by senior
executives.Unlock in
accordance
with the
Lu Wanjun 120037 50100 50100 120037 Executive relevant lawslocked shares and
regulations on
locking shares
by senior
28Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
executives.Unlock in
accordance
with the
relevant laws
Liu Xiaoming 120037 50100 50100 120037 Executivelocked shares andregulations on
locking shares
by senior
executives.Unlock in
accordance
with the
Executive relevant lawsTang Haiyuan 80662 50100 50100 80662 locked shares andregulations on
locking shares
by senior
executives.Unlock in
accordance
with the
Supervisor relevant lawsHu Jing 6750 0 0 6750 locked shares andregulations on
locking shares
by
supervisors.Other
shareholders 1855630 1855630 0 0 Not applicable Not applicable
Total 2475720 2106130 250500 620090 -- --
Note: 1. Reasons for the change in the number of shares with lifted restrictions in the current period: The
conditions for lifting restrictions in the third restriction-lifting period of the Phase-II restricted stock incentive plan have
been met; the transferable quota for outgoing senior executives has been adjusted. The total number of shares with
restrictions lifted as mentioned above is 2106130.
2. Reasons for the change in the number of newly restricted shares in the current period: A total of 250500 A-
share restricted shares with lifted restrictions held by current senior executives have been placed under restriction in
accordance with the regulations on executive locked shares.II. Issuance and listing of securities
Not applicable
3. Number of shareholders and their shareholding situation in the company
Unit: shares
Total number of ordinary Total number of preferred
shareholders as at the shareholders with restored voting
end of the reporting 25770 rights at the end of the reporting 0
period period (if any) (see Note 8)
Shareholders holding more than 5% stock or the top 10 stock shareholders' shareholding details (excluding shares
lent through refinancing)
Sharehold Nature Sharehol Number of Increase/ Number Number of Pledged tagged or
29Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
er's name ding shares held decrease of non- frozen
ratio at the end of during the restrictiv restrictive
the reporting reporting e stocks stocks held Status Number
period period held
Shentian
Technolog
y Holdings State-owned legal 40.17% 162977327 0 0 162977327 Not(Shenzhe applicable 0
n) Co. person
Ltd.Domestic
# Wu Jilin natural 4.38% 17770623 -201818 0 17770623 Not
person applicable
0
Qianhai
Life
Insurance
Co. Ltd. - Others 1.52% 6186370 6186370 0 6186370 Not
Dividend applicable
0
insurance
product
Qianhai
Life
Insurance
Co. Ltd. - Others 0.75% 3026000 3026000 0 3026000
Not
applicable 0
Own
funds
Domestic
Qiu Hong natural 0.69% 2800000 290000 0 2800000 Not 0
person applicable
Bank of
China
Limited -
Huashang
Selected
Return Others 0.63% 2549400 2549400 0 2549400
Not
applicable 0
Mixed
Securities
Investmen
t Fund
Zhejiang
Haokun
Shengfa
Asset
Managem
ent Co.Ltd. -
Haokun Others 0.61% 2492215 2492215 0 2492215 Not
Xingkong applicable
0
Feima
Phase 6
Private
Securities
Investmen
t Fund
Domestic
#Zhu Rui natural 0.51% 2087500 -61900 0 2087500 Not 0
person applicable
30Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
#Shao Domestic
Yixing natural 0.50% 2044200 2044200 0 2044200
Not
person applicable
0
Zhan Domestic
Zhiying natural 0.50% 2031500 2031500 0 2031500
Not 0
person applicable
Strategic investors or
general legal persons
becoming the top 10
shareholders due to Not applicable
placement of new shares
(if any) (see Note 3)
Notes to shareholders'
related relationship or The Company does not know whether the above 10 shareholders are related or act in
persons acting in concert concert.Description of the above
shareholders' The shareholder Shentian Technology Holdings authorized a representative to exercise
involvement in the voting rights on behalf of the company at the 2024 annual meeting of shareholders
commissioned/entrusted representing 162977327 shares. For details of the voting results please refer to the
voting rights and waiver relevant announcements issued by the company on the website of www.cninfo.com.cn.of voting rights
Special instructions on
the existence of special
repurchase accounts
among the top 10 Not applicable
shareholders (if any) (see
Note 11)
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
Shentian Technology Holdings (Shenzhen)
Co. Ltd. 162977327
RMB common
share 162977327
# Wu Jilin 17770623 RMB commonshare 17770623
Qianhai Life Insurance Co. Ltd. - Dividend
insurance product 6186370
RMB common
share 6186370
Qianhai Life Insurance Co. Ltd. - Own
funds 3026000
RMB common
share 3026000
Qiu Hong 2800000 RMB commonshare 2800000
Bank of China Limited - Huashang Selected RMB common
Return Mixed Securities Investment Fund 2549400 share 2549400
Zhejiang Haokun Shengfa Asset
Management Co. Ltd. - Haokun Xingkong RMB common
Feima Phase 6 Private Securities 2492215 share 2492215
Investment Fund
#Zhu Rui 2087500 RMB commonshare 2087500
#Shao Yixing 2044200 RMB commonshare 2044200
Zhan Zhiying 2031500 RMB commonshare 2031500
Explanation of the The Company does not know whether the above 10 shareholders are related or act in
31Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
relationship or concerted concert.actions between the top
10 shareholders with
unrestricted shareholding
conditions and that
between the top 10
shareholders with
unrestricted shareholding
conditions and the top 10
shareholders
1. In addition to holding 7490504 shares through the ordinary securities account Wu
Jilin the shareholder of the company also holds 10280119 shares through the client
Explanation of the top 10 credit trading guarantee securities account of CICC Wealth Management holding
common stock 17770623 shares in total;
shareholders' 2. In addition to holding 2600 shares through the ordinary securities account Zhu Rui
participation in securities the shareholder of the company also holds 2084900 shares in the client credit trading
margin trading (if any) guarantee securities account of First Capital Securities Co. Ltd. holding a total of2087500 shares;
3. Shareholder Shao Yixing holds 2044200 shares through a customer margin trading
collateral securities account of Cinda Securities Co. Ltd.Note: During the reporting period the name of the company's controlling shareholder changed from "AVIC
International Holdings Limited" to "Shentian Technology Holdings (Shenzhen) Co. Ltd."
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
4. Changes in shareholdings of Directors Supervisors and Senior Management
Number of
Number of Sharehol Shareholdi Number of restricted Number of
Number of
shares held ding ng shares shares restricted
restricted
shares
Office at the increase decreased held at end
granted at shares granted at
Name Title Status beginning of d in the in the of the
the granted
the reporting reporting reporting reporting beginning during the
the end of
the
period period period period of the reporting
(shares) (shares) (shares) (shares) reporting period
reporting
period (shares) period
(shares) (shares)
Zhang Chairman of In
Xuhua the Board office 0 0 0 0 0 0 0
Wang Bo Director Inoffice 0 0 0 0 0 0 0
Li Peiyin Director Inoffice 0 0 0 0 0 0 0
Deng
Jianghu Director
In
office 0 0 0 0 0 0 0
Guo In
Gaohang Director office 0 0 0 0 0 0 0
Pan Bo Managing InDirector office 230050 0 0 230050 50100 0 0
Wang Independent In
Susheng Director office 0 0 0 0 0 0 0
Wang Independent In
Wenbo Director office 0 0 0 0 0 0 0
Cao Independent In 0 0 0 0 0 0 0
32Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Guangzh Director office
ong
Chairman of
Hu Min the Supervisory In 0 0 0 0 0 0 0
Committee office
Yuan
Tianbo Supervisor
In
office 0 0 0 0 0 0 0
Hu Jing Supervisor Inoffice 9000 0 0 9000 0 0 0
Lu deputy GM and
Wanjun chief law
In
office 160050 0 0 160050 50100 0 0adviser
Liu In
Xiaoming Deputy GM office 160050 0 0 160050 50100 0 0
Li Ming Deputy GM Inoffice 160090 0 0 160090 50100 0 0
Chief
Song Accountant and In
Yaoming the Secretary of office 0 0 0 0 0 0 0
the Board
Tang In
Haiyuan Deputy GM office 107550 0 0 107550 50100 0 0
Total -- -- 826790 0 0 826790 250500 0 0
5. Changes in controlling shareholders or actual controllers
Changes in controlling shareholders during the reporting period
Not applicable
Change of actual controller during the reporting period
Not applicable
VI. Relevant information about preferred stock
Not applicable
33Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Section 7 Bond-related information
Not applicable
34Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Section 8 Financial statement
I. Audit report
Whether the semi-annual report has been audited
No
II. Financial statements
The unit of the financial statements in the notes is RMB
1. Consolidated balance sheet
Prepared by: FIYTA Precision Technology Co. Ltd.June 30 2025
Unit: yuan
Item Balance at the end of the period Beginning balance
Current assets:
Monetary funds 539306933.97 518954177.49
Balances with clearing companies
Loans to other banks and financial
institutions
Financial assets held for trading
Derivative financial assets
Notes receivable 13890956.79 29611600.60
Accounts receivable 295552172.33 260152834.43
Receivable financing
Advances to suppliers 24636188.41 3858053.60
Premium receivable
Reinsurance accounts receivable
Provision of cession receivable
Other receivables 56382345.03 56982351.27
Including: interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 1844734053.46 1984486969.74
Including: data resources
Contract assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets 94506620.74 98007925.22
Total current assets 2869009270.73 2952053912.35
35Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 51401581.98 50907036.84
Investments in other equity
instruments
Other non-current financial assets
Investment properties 294173788.77 301002364.41
Fixed assets 368564629.53 377568144.41
Construction in progress
Productive biological assets
Oil and gas assets
Right-of-use assets 82724677.42 98437976.41
Intangible assets 30819121.76 31567927.16
Including: data resources
Development expenses
Including: data resources
Goodwill
Long-term deferred expenses 97336736.70 110205323.29
Deferred tax assets 77387311.98 82155778.31
Other non-current assets 7269265.12 3792253.84
Total non-current assets 1009677113.26 1055636804.67
Total assets 3878686383.99 4007690717.02
Current liabilities:
Short-term borrowings 140084055.54 124087754.51
Borrowings from central bank
Loans from other banks and other
financial institutions
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 94532784.30 115532921.57
Advances from customers 7813681.37 11783796.49
Contract liabilities 15914217.86 12605722.95
Financial assets sold under
repurchase agreements
Absorption of deposits and
interbank deposits
Receiving from vicariously traded
securities
Receiving from vicariously sold
securities
36Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Employee remuneration payable 61957407.90 92260153.14
Taxes and surcharges payable 46730334.76 49815151.35
Other payables 89287084.19 104638483.81
Including: interest payable
Dividends payable 2785293.14
Handling charges and
commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities maturing
within one year 57399333.79 63538231.06
Other current liabilities 2429897.06 1529468.07
Total current liabilities 516148796.77 575791682.95
Non-current liabilities:
Reserves for insurance contracts
Long-term borrowings
Bonds payable
Including: preferred shares
Perpetual bond
Lease liability 26793779.93 35065292.04
Long-term payables
Long-term salary payable
Estimated liabilities
Deferred income
Deferred tax liabilities 2134123.90 4990541.42
Other non-current liabilities
Total non-current liabilities 28927903.83 40055833.46
Total liabilities 545076700.60 615847516.41
Owners' equity:
Share capital 405764007.00 405764007.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital reserves 935609251.94 936339503.60
Less: treasury stock 12815556.81
Other comprehensive income 25279285.71 15686794.62
Special reserve 4288952.07 4340162.76
Surplus reserve 275010401.50 275010401.50
General risk reserves
Undistributed profit 1687657785.17 1767517887.94
Total equity attributable to owners of
the parent company 3333609683.39 3391843200.61
Minority equity
Total owners’ equity 3333609683.39 3391843200.61
Total liabilities and owners' equity 3878686383.99 4007690717.02
Legal Representative: Zhang Xuhua CFO: Song Yaoming Financial Manager: Jiang Haiming
37Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
2. Balance Sheet of parent company
Unit: yuan
Item Balance at the end of the period Beginning balance
Current assets:
Monetary funds 428653699.64 390160466.41
Financial assets held for trading
Derivative financial assets
Notes receivable
Accounts receivable 8947685.50 4631990.38
14. Receivable financing
Advances to suppliers
Other receivables 519456909.65 659565868.48
Including: interest receivable
Dividends receivable
Inventories 46562.24 45565.43
Including: data resources
Contract assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets 15643323.47 16189136.04
Total current assets 972748180.50 1070593026.74
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 1643945467.89 1643450922.75
Investments in other equity
instruments
Other non-current financial assets
Investment properties 231728556.05 237185496.11
Fixed assets 236827051.71 241791004.56
Construction in progress
Productive biological assets
25. Oil and gas assets
Right-of-use assets
Intangible assets 23771012.63 24189360.11
Including: data resources
Development expenses
Including: data resources
Goodwill
38Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Long-term deferred expenses 4162035.50 3692497.29
Deferred tax assets 591249.21 931572.58
Other non-current assets 2205304.19 1358052.54
Total non-current assets 2143230677.18 2152598905.94
Total assets 3115978857.68 3223191932.68
Current liabilities:
Short-term borrowings 140084055.54 120130566.65
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 2009310.85 1928876.85
Advances from customers 7813681.37 11783796.49
Contract liabilities
Employee remuneration payable 17162723.30 23190240.79
Taxes and surcharges payable 3361240.53 779783.47
Other payables 279631983.06 252129600.19
Including: interest payable
Dividends payable 2785293.14
Liabilities held for sale
Non-current liabilities maturing
within one year
Other current liabilities
Total current liabilities 450062994.65 409942864.44
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: preferred shares
Perpetual bond
Lease liability
Long-term payables
Long-term salary payable
Estimated liabilities
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 450062994.65 409942864.44
Owners' equity:
Share capital 405764007.00 405764007.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital reserves 938999713.64 939217999.41
Less: treasury stock 12815556.81
Other comprehensive income
39Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Special reserve
Surplus reserve 275010401.50 275010401.50
Undistributed profit 1046141740.89 1206072217.14
Total owners’ equity 2665915863.03 2813249068.24
Total liabilities and owners' equity 3115978857.68 3223191932.68
Legal Representative: Zhang Xuhua CFO: Song Yaoming Financial Manager: Jiang Haiming
3. Consolidated income statement
Unit: yuan
Item Semi-annual 2025 Semi-annual 2024
I. Total operating revenue 1784131937.23 2076397911.32
Including: operating revenue 1784131937.23 2076397911.32
Interest income
Premiums earned
Income from handling
charges and commissions:
II. Total operating costs 1686829306.89 1892890643.96
Including: operating costs 1149808611.57 1304482455.55
Interest expenditures
Handling charge and
commission expenditures
Surrender value
Net amount of
compensation payout
Net insurance liability
reserves withdrawn
Policy dividend payment
Reinsurance costs
Taxes and surcharges 15513201.04 12260457.55
Selling expenses 392808032.65 449785002.40
Administrative expenses 89971510.01 89213932.54
Research and development
expenses 33087871.33 27525998.33
Financial expenses 5640080.29 9622797.59
Including: interest
expenses 2390395.42 5169603.47
Interest income 1870950.85 2185535.51
Plus: other income 2946889.68 3103884.50
Investment income ("-" for
losses) 742044.98 313834.17
Including: income from
investment in associates and joint 494545.14 89872.06
ventures
Income from
derecognition of financial asset
measured at amortized cost
40Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Foreign exchange gains ("-"
for losses)
Net exposure hedging income
("-" for losses)
Gains from changes in fair
value ("-" for losses)
Credit impairment losses ("-"
for losses) 2228174.46 2724678.43
Asset impairment losses ("-"
for losses) 1780567.39 28336.82
Asset disposal income ("-" for
losses) -424407.32 2906210.67
3. Operating profits ("-" for losses) 104575899.53 192584211.95
Plus: non-operating revenue 1204207.92 1378138.85
Less: non-operating expenses 219441.69 278833.35
4. Total profits ("-" for total losses) 105560665.76 193683517.45
Less: income tax expenses 23115165.73 46545035.11
5. Net profits ("-" for net losses) 82445500.03 147138482.34
(I) Classified by operating
sustainability
1. Net profit from continuing
operations ("-" for net losses) 82445500.03 147138482.34
2. Net profit from discontinued
operations ("-" for net losses)
(II) Classified by ownership
1. Net profit attributable to
shareholders of the parent company 82445500.03 147138482.34
("-" for net losses)
2. Minority interest income ("-"
for net losses)
VI. Other comprehensive income net
of tax 9592491.09 -5577527.76
Net amount of other
comprehensive income after tax
attributable to owners of the parent 9592491.09 -5577527.76
company
(I) Other comprehensive income
that cannot be reclassified into profit
or loss later
1. Changes in remeasurement
of defined benefit plans
2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method
3. Changes in fair value of
other equity instruments investment
4. Changes in the fair value of
the enterprise's own credit risk
5. Others
(II) Other comprehensive income
that will be reclassified into profit or 9592491.09 -5577527.76
loss
1. Other comprehensive
41Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
income that can be transferred to
profit or loss under the equity method
2. Changes in fair value of
other creditor’s right investment
3. Amount of financial assets
reclassified into other comprehensive
income
4. Provision for credit
impairment of other creditor's rights
investment
5. Reserve for cash flow
hedges
6. Differences arising from
translation of foreign-currency 9592491.09 -5577527.76
financial statements
7. Others
Net of tax from other
comprehensive income attributable to
minority shareholders
VII. Total comprehensive income 92037991.12 141560954.58
Total comprehensive income
attributable to owners of the parent 92037991.12 141560954.58
company
Total comprehensive income
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.2034 0.3568
(II) Diluted earnings per share 0.2034 0.3564
Legal Representative: Zhang Xuhua CFO: Song Yaoming Financial Manager: Jiang Haiming
4. Profit Statement of Parent Company
Unit: yuan
Item Semi-annual 2025 Semi-annual 2024
I. Operating revenue 81474823.42 95651893.86
Less: operating cost 25511651.20 28763610.04
Taxes and surcharges 3821053.25 3754920.70
Selling expenses 17415912.81 13488147.65
Administrative expenses 27948465.95 27338182.18
Research and development
expenses 6543258.58 6949411.52
Financial expenses -1776950.85 -888010.29
Including: interest expenses -54463.04 305742.86
Interest income 1566068.25 1605624.26
Plus: other income 818743.58 194361.73
Investment income ("-" for
losses) 494545.14 89872.06
Including: income from
investment in associates and joint 494545.14 89872.06
ventures
Gains from
42Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
derecognition of financial assets
measured at amortized cost ("-" for
losses)
Net exposure hedging income
("-" for losses)
Gains from changes in fair
value ("-" for losses)
Credit impairment losses ("-"
for losses) -462263.85 -520369.57
Asset impairment losses ("-"
for losses)
Asset disposal income ("-" for
losses) 2920369.62
2. Operating profits ("-" for losses) 2862457.35 18929865.90
Plus: non-operating revenue 23782.21 973.45
Less: non-operating expenses 6.18 334515.20
3. Total profits ("-" for total losses) 2886233.38 18596324.15
Less: income tax expenses 511106.83 4661624.51
4. Net profits ("-" for net losses) 2375126.55 13934699.64
(1) Net profit from continuing
operations ("-" for net losses) 2375126.55 13934699.64
(2) Net profit from discontinued
operations ("-" for net losses)
V. Other comprehensive income net
of tax
(I) Other comprehensive income
that cannot be reclassified into profit
or loss later
1. Changes in remeasurement
of defined benefit plans
2. Other comprehensive
income that cannot be transferred to
profit or loss under the equity method
3. Changes in fair value of
other equity instruments investment
4. Changes in the fair value of
the enterprise's own credit risk
5. Others
(II) Other comprehensive income
that will be reclassified into profit or
loss
1. Other comprehensive
income that can be transferred to
profit or loss under the equity method
2. Changes in fair value of
other creditor’s right investment
3. Amount of financial assets
reclassified into other comprehensive
income
4. Provision for credit
impairment of other creditor's rights
investment
5. Reserve for cash flow
hedges
43Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
6. Differences arising from
translation of foreign-currency
financial statements
7. Others
VI. Total comprehensive income 2375126.55 13934699.64
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
Legal Representative: Zhang Xuhua CFO: Song Yaoming Financial Manager: Jiang Haiming
5. Consolidated Cash Flow Statement
Unit: yuan
Item Semi-annual 2025 Semi-annual 2024
I. Cash flows from operating
activities:
Cash received from sale of goods
and rendering of services 1918518666.40 2242943860.28
Net increase in deposits from
customers and deposits with banks
and other financial institutions
Net increase in borrowings from
central bank
Net increase in loans from other
financial institutions
Cash received from receiving
insurance premium of original
insurance contract
Net cash received from
reinsurance business
Net increase in deposits and
investments from policyholders
Cash received from interests
handling charges and commissions
Net increase in loans from banks
and other financial institutions
Net capital increase in repurchase
business
Net cash received from vicariously
traded securities
Refunds of taxes and surcharges 765302.02 1361806.68
Cash from other operating
activities 20316713.59 22763002.95
Sub-total of cash inflows from
operating activities 1939600682.01 2267068669.91
Cash paid for purchase of goods or
accepting services 1117286716.61 1493308339.25
Net increase in loans and
advances to customers
Net increase in deposits with
central bank and with banks and
other financial institutions
44Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Cash paid for original insurance
contract claims
Net increase in loans to banks and
other financial institutions
Cash paid for interests handling
charges and commissions
Cash paid for policy dividends
Cash paid to and on behalf of
employees 295806175.23 336053098.67
Cash paid for taxes and
surcharges 123135450.22 115761812.75
Cash paid for other operating
activities 151881532.88 185414622.72
Sub-total of cash outflows from
operating activities 1688109874.94 2130537873.39
Net cash flows from operating
activities 251490807.07 136530796.52
II. Cash flows from investing
activities:
Cash received from disposal of
investments
Cash received from investment
income 297627.16 196270.19
Net cash received from disposal of
fixed assets intangible assets and 134782.34 4813262.87
other long-term assets
Net cash from disposal of
subsidiaries and other business units
Cash received from other investing
activities 104282319.06 120049969.61
Subtotal of cash inflows from
investing activities 104714728.56 125059502.67
Cash paid to acquire and construct
fixed assets intangible assets and 33910801.03 43613301.74
other long-term assets
Cash paid for investments
Net increase in pledge loans
Net cash paid to acquire
subsidiaries and other business units
Cash paid for other investing
activities 111168651.92 165092806.07
Sub-total of cash outflows from
investing activities 145079452.95 208706107.81
Net cash flows from the investing
activities -40364724.39 -83646605.14
III. Cash flows from financing
activities:
Cash received from investors
Including: cash received by
subsidiaries from investments of
minority shareholders
Cash received from borrowings 140000000.00 320000000.00
Cash received from other financing
activities
Subtotal of cash inflows from
financing activities 140000000.00 320000000.00
45Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Cash paid for debt repayments 120000000.00 250000000.00
Cash paid for distribution of
dividends and profits or payment of 165355261.79 164868413.68
interests
Including: dividends and profit paid
to minority shareholders by
subsidiaries
Cash paid for other financing
activities 45795435.69 58254091.98
Sub-total of cash outflows from
financing activities 331150697.48 473122505.66
Net cash flows from financing
activities -191150697.48 -153122505.66
IV. Effect of fluctuation in exchange
rate on cash and cash equivalents 377371.28 -34830.30
V. Net increase in cash and cash
equivalents 20352756.48 -100273144.58
Plus: beginning balance of cash
and cash equivalents 518954177.49 504629153.71
VI. Ending balance of cash and cash
equivalents 539306933.97 404356009.13
Legal Representative: Zhang Xuhua CFO: Song Yaoming Financial Manager: Jiang Haiming
6. Cash Flow Statement of Parent Company
Unit: yuan
Item Semi-annual 2025 Semi-annual 2024
I. Cash flows from operating
activities:
Cash received from sale of goods
and rendering of services 79872428.27 92269424.38
Refunds of taxes and surcharges
Cash from other operating
activities 1750398006.10 1967128778.52
Sub-total of cash inflows from
operating activities 1830270434.37 2059398202.90
Cash paid for purchase of goods or
accepting services 9263532.80 9782620.00
Cash paid to and on behalf of
employees 40073696.79 44398658.47
Cash paid for taxes and
surcharges 5903973.37 12856580.23
Cash paid for other operating
activities 1585917118.90 1899095301.14
Sub-total of cash outflows from
operating activities 1641158321.86 1966133159.84
Net cash flows from operating
activities 189112112.51 93265043.06
II. Cash flows from investing
activities:
Cash received from disposal of
investments
Cash received from investment
income
Net cash received from disposal of 4741325.47
46Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
fixed assets intangible assets and
other long-term assets
Net cash from disposal of
subsidiaries and other business units
Cash received from other investing
activities
Subtotal of cash inflows from
investing activities 4741325.47
Cash paid to acquire and construct
fixed assets intangible assets and 5249498.62 1946698.06
other long-term assets
Cash paid for investments
Net cash paid to acquire
subsidiaries and other business units
Cash paid for other investing
activities
Sub-total of cash outflows from
investing activities 5249498.62 1946698.06
Net cash flows from the investing
activities -5249498.62 2794627.41
III. Cash flows from financing
activities:
Cash received from investors
Cash received from borrowings 140000000.00 320000000.00
Cash received from other financing
activities
Subtotal of cash inflows from
financing activities 140000000.00 320000000.00
Cash paid for debt repayments 120000000.00 250000000.00
Cash paid for distribution of
dividends and profits or payment of 165355261.79 164868413.68
interests
Cash paid for other financing
activities 79409.91
Sub-total of cash outflows from
financing activities 285355261.79 414947823.59
Net cash flows from financing
activities -145355261.79 -94947823.59
IV. Effect of fluctuation in exchange
rate on cash and cash equivalents -14118.87 10273.00
V. Net increase in cash and cash
equivalents 38493233.23 1122119.88
Plus: beginning balance of cash
and cash equivalents 390160466.41 308230255.35
VI. Ending balance of cash and cash
equivalents 428653699.64 309352375.23
Legal Representative: Zhang Xuhua CFO: Song Yaoming Financial Manager: Jiang Haiming
7. Consolidated Statement of Changes in Owner’s Equity
Amount of the current period
Unit: yuan
Semi-annual 2025
Item
Equity attributable to owners of the parent company Min Tot
47Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Other equity Oth ority al
instruments Les er Gen Und equi own
Sha Cap Spe Sur
ty ers’
re Pref Per ital
s: com cial plus eral istritrea pre Sub equi
capi erre pet res sury hen res res
risk but Oth - ty
tal d ual
Oth erv stoc sive erv erv
res ed ers
erv prof total
sha bon ers es k inco e e es it
res d me
173333
I. Closing 405 936 12 15 43 275 67 91 91
balance of 76 33 815 686 01
the previous 40 95 55 79
4004517843843
year 07. 03. 6.8 4.6
162882020
006012.76
01.
507.90.60.6411
Plus:
changes in
accounting
policies
Co
rrection of
accounting
errors in
prior
periods
Ot
hers
405 936 12 15 275 17 33 33II. Balance 43 67 91 91
as at the 76 33 815 686 01
beginning of 40 95 55 79
4004517843843
07. 03. 6.8 4.6 162 01. 88 20 20this year 00 60 1 2 .76 50 7.9 0.6 0.64 1 1
3. Changes
in - - - -
increase/de -730 12 95 - 79 58 58crease in 815 92 51 860 233 233
the current 25 55 491 210 10 51 51
period ("-" 1.6 6.8 .09 .69 2.7 7.2 7.2
for 6 1 7 2 2
decrease)
829292
(I) Total 9592 445 037 037comprehen 491 50 99 99sive income .09 0.0 1.1 1.13 2 2
-
(II) Capital - 12 12 12
contributed 73025 815
085085
or reduced 1.6 55
3030
by owners 6.8 5.1 5.16 1 5 5
1. Common
stock
contributed
by owners
48Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
2. Capital
invested by
the holders
of other
equity
instruments
3. Amounts
of share- - - 12 12
based 730 12 085 085
payments 25 815
recognized 1.6 55
3030
5.15.1
in owner’s 6 6.8
equity 1
55
4. Others
---
162162162
(III) Profit 30 30 30
distribution 56 56 56
02.02.02.
808080
1.
Withdrawal
of surplus
reserves
2.
Withdrawal
of general
risk
reserves
3. Profit - - -
distributed 162 162 162
to owners 30 30 30
(or 56 56 56
shareholder 02. 02. 02.s) 80 80 80
4. Others
(IV) Internal
carry-
forward of
owners'
equity
1.
Conversion
of capital
reserves
into paid-in
capital (or
share
capital)
2.
Conversion
of surplus
reserves
into paid-in
49Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
capital (or
share
capital)
3. Surplus
reserves
offsetting
losses
4.
Forwarding
of retained
gains from
changes in
remeasure
ment of
defined
benefit
plans
5. Transfer
of other
comprehen
sive income
into
retained
earnings
6. Others
---
(V) Special 51 51 51
reserves 210 210 210.69.69.69
1.223223223
Withdrawal 17 17 17
in this 7.6 7.6 7.6
period 4 4 4
---
2. Amount 274 274 274
used in this 38 38 38
period 8.3 8.3 8.3
333
(VI) Others
IV. Balance 405 935 25 42 275
163333
76 60 279 01 87 33 33as at the 40 92 28 88 657 609 609end of this 07. 51. 5.7 952
04
01. 78 68 68period 00 94 1 .07 50 5.1 3.3 3.37 9 9
Amount in the previous year
Unit: yuan
Semi-annual 2024
Equity attributable to owners of the parent company
Min Tot
Item Sha Other equity Cap Les Oth Spe Sur Gen Und ority al
re instruments Subital s: er cial plus eral istri Oth own
capi -
equi
Pref Per res trea com res res risk but ers ers’
tal erre pet Oth
total ty
erv sury pre erv erv res ed equi
50Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
d ual ers es stoc hen e e erv prof ty
sha bon k sive es it
res d inco
me
173333
I. Closing 415 990 78 19 27521 15 645 325 32 09 33 33balance of 99 90 53 33 23
01
04 513 805 805the previous 158 38 75 75
year 70. 33. 2.2 5.9 .06 01.00 17 3 3 50 5.7 2.1 2.16 9 9
Plus:
changes in
accounting
policies
Co
rrection of
accounting
errors in
prior
periods
Ot
hers
173333
II. Balance 415 990 78 19 275
as at the 21 15 645 325
3201093333
99 90 53 33 23 513 805 805beginning of 70. 33. 2.2 5.9 158
04387575
this year 00 17 3 3 .06
01.
505.72.12.1699
3. Changes
in - - - - -
increase/de - 54 65 - 541 15 18 18
crease in 9355 078 199
5585207477477
the current 763 83 71
777.3207575
period ("-" .00 9.2 7.4
527
for 1 2 .76
60.45.65.6
766
decrease)
-147141141
(I) Total 55 13 56 56
comprehen 77 84 09 09
sive income 527 82. 54. 54..76345858
--
(II) Capital -93 54 65 17 17contributed
or reduced 55
0781996565
by owners 763
8371115115.009.27.4.21.2112
--
1. Common - 54 64
stock 93 984 340
contributed 55 90 66
by owners 763.00 6.4 9.42 2
2. Capital
invested by
the holders
51Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
of other
equity
instruments
3. Amounts
of share-
based 906
-
8591717
payments 067.2 04
6565
recognized 1 8.0
115115
in owner’s 0 .21 .21
equity
4. Others
---
162162162
(III) Profit 34 34 34
distribution 56 56 56
82.82.82.
818181
1.
Withdrawal
of surplus
reserves
2.
Withdrawal
of general
risk
reserves
3. Profit - - -
distributed 162 162 162
to owners 34 34 34
(or 56 56 56
shareholder 82. 82. 82.s) 81 81 81
4. Others
(IV) Internal
carry-
forward of
owners'
equity
1.
Conversion
of capital
reserves
into paid-in
capital (or
share
capital)
2.
Conversion
of surplus
reserves
into paid-in
capital (or
share
capital)
52Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
3. Surplus
reserves
offsetting
losses
4.
Forwarding
of retained
gains from
changes in
remeasure
ment of
defined
benefit
plans
5. Transfer
of other
comprehen
sive income
into
retained
earnings
6. Others
541541541
(V) Special 85 85 85
reserves 7.3 7.3 7.3
666
1.760760760
Withdrawal 55 55 55
in this 6.4 6.4 6.4
period 0 0 0
---
2. Amount 218 218 218
used in this 69 69 69
period 9.0 9.0 9.0
444
(VI) Others
163333
IV. Balance 405 936 13 13 37 275 94 15 15
as at the 86 08 445 747 01
end of this 42 01 81 80
6504306327327015189999
period 07. 93. 4.8 8.1 01.00 96 1 7 .42 50 5.2 6.5 6.59 3 3
Legal Representative: Zhang Xuhua CFO: Song Yaoming Financial Manager: Jiang Haiming
8. Variation of equity attributable to owners of the parent company
Amount of the current period
Unit: yuan
Semi-annual 2025
Share Other equity Capit Less: Other Speci Surpl Undis TotalItem
capita instruments al treas comp al us tribut Other owne
l reser ury rehen reser reser ed s rs’Prefe Perpe Other ves stock sive ve ve profit equity
53Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
rred tual s incom
share bond e
s
I. Closing
balance of 4057 9392 1281 2750
12062813
6400 1799 5556 1040 072 249the previous 7.00 9.41 .81 1.50 217.1 068.2year 4 4
Plus:
changes in
accounting
policies
Co
rrection of
accounting
errors in
prior
periods
Ot
hers
II. Balance 1206 2813
as at the 4057 9392 1281 2750
beginning of 6400 1799 5556 1040
072249
7.00 9.41 .81 1.50 217.1 068.2this year 4 4
3. Changes
in
increase/de - - - -crease in 2182 1281 1599 1473the current
period ("-" 85.77
555630473320.816.255.21
for
decrease)
(I) Total 2375 2375
comprehen 126. 126.sive income 55 55
(II) Capital -
contributed - 1259
or reduced 2182
1281
85.775556
7271
by owners .81 .04
1. Common
stock
contributed
by owners
2. Capital
invested by
the holders
of other
equity
instruments
3. Amounts
of share- - - 1259
based 2182 1281 7271
payments 85.77 5556 .04
recognized .81
in owner’s
54Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
equity
4. Others
--
(III) Profit 1623 1623
distribution 0560 0560
2.802.80
1.
Withdrawal
of surplus
reserves
2. Profit
distributed - -
to owners 1623 1623
(or 0560 0560
shareholder 2.80 2.80
s)
3. Others
(IV) Internal
carry-
forward of
owners'
equity
1.
Conversion
of capital
reserves
into paid-in
capital (or
share
capital)
2.
Conversion
of surplus
reserves
into paid-in
capital (or
share
capital)
3. Surplus
reserves
offsetting
losses
4.
Forwarding
of retained
gains from
changes in
remeasure
ment of
defined
benefit
plans
5. Transfer
of other
55Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
comprehen
sive income
into
retained
earnings
6. Others
(V) Special
reserves
1.
Withdrawal
in this
period
2. Amount
used in this
period
(VI) Others
IV. Balance
as at the 4057 9389 2750
10462665
141915
end of this 6400 9971 10407.00 3.64 1.50 740.8 863.0period 9 3
Amount in the previous year
Unit: yuan
Semi-annual 2024
Other equity Other
instruments
Share Capit Less: comp Speci Surpl Undis TotalItem
capita Prefe al treas rehen al us tribut Other owne
l rred
Perpe Other reser ury sive reser reser ed s rs’
share tual s ves stock incom ve ve profit equity
s bond e
I. Closing 4152 9930 7864 2750 1063 2668balance of
the previous 1997 3752 5532 1040
629251
0.00 8.98 .23 1.50 483.3 851.6year 5 0
Plus:
changes in
accounting
policies
Co
rrection of
accounting
errors in
prior
periods
Ot
hers
II. Balance
as at the 4152 9930 7864 2750
10632668
1997 3752 5532 1040 629 251beginning of 0.00 8.98 .23 1.50 483.3 851.6this year 5 0
3. Changes - - - - -
in 9355 5407 6519 1484 1466
56Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
increase/de 763. 8839 9717 1098 4586
crease in 00 .21 .42 3.16 7.95
the current
period ("-"
for
decrease)
(I) Total 1393 1393
comprehen 4699 4699
sive income .65 .65
(II) Capital - - -
contributed 9355 5407 6519 1765
or reduced 763. 8839 9717 115.by owners 00 .21 .42 21
1. Common - - -
stock 9355 5498 6434
contributed 763. 4906 0669
by owners 00 .42 .42
2. Capital
invested by
the holders
of other
equity
instruments
3. Amounts
of share-
based - 1765
payments 9060 8590 115.recognized 67.21 48.00 21
in owner’s
equity
4. Others
--
(III) Profit 1623 1623
distribution 4568 4568
2.812.81
1.
Withdrawal
of surplus
reserves
2. Profit
distributed - -
to owners 1623 1623
(or 4568 4568
shareholder 2.81 2.81
s)
3. Others
(IV) Internal
carry-
forward of
owners'
equity
1.
Conversion
of capital
57Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
reserves
into paid-in
capital (or
share
capital)
2.
Conversion
of surplus
reserves
into paid-in
capital (or
share
capital)
3. Surplus
reserves
offsetting
losses
4.
Forwarding
of retained
gains from
changes in
remeasure
ment of
defined
benefit
plans
5. Transfer
of other
comprehen
sive income
into
retained
earnings
6. Others
(V) Special
reserves
1.
Withdrawal
in this
period
2. Amount
used in this
period
(VI) Others
IV. Balance 2521
as at the 4058 9389 1344 2750 9152
end of this 6420 5868 5814 1040 1850
605
period 7.00 9.77 .81 1.50 0.19
983.6
5
Legal Representative: Zhang Xuhua CFO: Song Yaoming Financial Manager: Jiang Haiming
58Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
III. Company profile
1. Company's registered location organizational form and headquarters address
FIYTA Precision Technology Co. Ltd. (hereinafter referred to as the "Company") was restructured and
established by "Shenzhen FIYTA Timing Industry Company" on December 25 1992 with the approval of the SFBF
[1992] No. 1259 Document of the General Office of the People's Government of Shenzhen Municipality by Shenzhen
Industry and Trade Center of China Aviation Technology Import & Export (later renamed as "China Aviation
Technology Shenzhen Co. Ltd.") as the initiator. The company was listed on the Shenzhen Stock Exchange on June 3
1993 and now holds a business license with a unified social credit code of 91440300192189783K.
After the distribution of bonus shares placement of new shares capital stock conversion and further issue of new
shares over the years as of June 30 2025 the company has issued a total of 405764007 shares with a registered
capital of RMB405764007. The registered address is FIYTA Technology Building Gaoxin South 1st Road Nanshan
District Shenzhen City Guangdong Province. The headquarter address is FIYTA Technology Building Gaoxin South
1st Road Nanshan District Shenzhen City Guangdong Province. The parent company is Shentian Technology
Holdings (Shenzhen) Co. Ltd. and the ultimate controlling party is Aviation Industry Corporation of China LTD.
2. Business nature and main operating activities of the company
The business nature and main operating activities of the Company and its subsidiaries include: sales of clocks
and watches; Manufacturing of clocks watches and timekeeping instruments; Sales of clocks watches and
timekeeping instruments; Jewelry wholesale; Jewelry retail; Manufacturing of wearable smart devices; Sales of
wearable smart devices; Leasing of non-residential real estate; Professional design services; Sales of household
appliances; Satellite mobile communication terminal sales (except for projects that must be approved in accordance
with the law business activities shall be carried out independently in accordance with the law on the strength of the
business license) etc.
3. Scope of the consolidated financial statements
There are 12 subsidiaries included in the scope of consolidation in the current period. See Note 10 Equity in other
entities for details. There is no change in the entities included in the scope of the consolidated financial statements for
the current period compared to the previous period.
4. Approval on the issuance of the financial statements
These financial statements were approved for issuance by the resolution of the Company's Board of Directors on
Aug. 22 2025.IV. Basis of preparation for financial statements
1. Basis of preparation
The Company prepares its financial statements on a going concern basis recognizing and measuring
transactions and events based on their actual occurrence in accordance with the requirements of the Accounting
Standards for Business Enterprises their application guidelines and interpretative notes. In addition the Company
discloses relevant financial information in compliance with the CSRC's Information Disclosure and Preparation Rules
for Companies Publicly Offering Securities No. 15 – General Provisions on Financial Reports (Revised in 2023).
59Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
2. Going concern
The Company has assessed its going concern ability for the 12 months from the end of the reporting period and
found no events that would affect such ability. Therefore it is reasonable for the Company to prepare its financial
statements on a going concern basis.V. Significant accounting policies and accounting estimates
Tips of specific accounting policies and accounting estimates:
1. The Company determines specific accounting policies and accounting estimates according to the
characteristics of production and operation mainly reflected in the method of expected credit loss of receivables
(Notes V.12 Notes V.13 Notes V.15) the valuation method of inventories (Notes V.17) the depreciation of investment
properties fixed assets and intangible assets (Notes V.23 Notes V.24 Notes V.29) income (Notes V.37) etc.
2. The Company continuously evaluates the important accounting estimates and key assumptions adopted based
on historical experience and other factors including reasonable expectations of future events. The following significant
accounting estimates and key assumptions if subject to substantial changes may have a significant impact on the
carrying amounts of assets and liabilities in future accounting periods:
(1) Provision for bad debts of accounts receivable and other receivables is made according to the accounting
standards. The provision for impairment of accounts receivable and other receivables should be estimated by
describing the expected credit losses of accounts receivable and others receivable judged by the management. If any
events or changes in circumstances indicate that the Company may not be able to recover the relevant balances it is
necessary to use estimates to accrue provisions for accounts receivable and other receivables. If the expected figure
is different from the original estimate the difference will affect the book value of accounts receivable and other
receivables as well as the impairment provision during the change in estimate.
(2) Estimation of inventory impairment. It shall describe that the inventories are measured at the lower of cost and
net realizable value on the balance sheet date and the calculation of net realizable value requires the use of
assumptions and estimates. If management revises the estimated selling prices and the costs and expenses to be
incurred upon completion it will affect the estimated net realizable value of inventories. This difference will impact the
provision for inventory write-downs.
(3) Estimation of impairment of long-term assets. It should be described that when the management judges
whether there is impairment of long-term assets it mainly evaluates and analyzes from the following aspects: (1)
whether the events that affect the impairment of assets have occurred; (2) Whether the present value of the cash flows
expected to be obtained due to the continuous use or disposal of the assets is lower than the book value of the assets;
And (3) whether the important assumptions used in the present value of expected future cash flows are appropriate.If the assumptions used by the company to determine impairment such as profitability discount rate and growth
rate assumptions in the present value method of future cash flows change this may significantly impact the present
value used in impairment testing and result in the impairment of the company's long-term assets.
(4) Depreciation and amortization. The Company's estimates of the estimated useful life and estimated net
residual value of the investment properties fixed assets and intangible assets are based on the actual useful life and
net residual value of the assets with similar nature and functions in the past. During the use of the assets the
economic environment technological environment and other environments in which the assets are located may have a
greater impact on the useful life and estimated net residual value of the assets. If there is any difference between the
estimated useful life and net residual value of the assets and the original estimates the management will make
appropriate adjustments.
60Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(5) Deferred tax assets Deferred tax assets should be recognized for all unused tax losses to the extent that it is
probable that there will be sufficient taxable profits to offset the losses. This requires the management to use a lot of
judgment to estimate the time and amount of future taxable profits combined with tax planning strategies to determine
the amount of deferred tax assets that should be recognized.
(6) Income tax. It should be described in normal business activities there are uncertainties in the final tax
treatment of many transactions and matters. Significant judgments need to be made when accruing income tax. If
there is a difference between the final recognized outcome for these taxes and the initial received amount it will have
an impact on the above-mentioned taxes in the final recognition period.
1. Statement of Compliance with Accounting Standard for Business Enterprises
The financial statement prepared by the Company meets the requirements of accounting standards for
enterprises and authentically and completely reflects financial status business performance cash flow and other
relative information on the Company during the reporting period.
2. Accounting period
The accounting year of COOEC is from January 1 to December 31 in calendar year.
3. Operating cycle
The company's normal operating cycle is one year.
4. Functional currency
The Company and its domestic subsidiaries use RMB as its functional currency. FIYTA (HONG KONG) LIMITED
an overseas subsidiary of the Company determines HKD as its functional currency according to the currency in the
main economic environment in which it operates. Montres Chouriet SA a subsidiary of FIYTA (HONG KONG)
LIMITED determines Swiss franc as its functional currency based on the currency in the main economy environment
in which it operates which is converted into RMB when preparing the financial statements. The currency adopted by
the Company for the preparation of the financial statements is RMB.
5. Determination method and selection basis of materiality criteria
Item Importance criteria
Accounts receivable with significant amount reversed
from provision for bad debts or recovered in the current Single ending balance of more than RMB1000000
period
Significant other payable with an aging of over one year Single ending balance of more than RMB1000000
6. Accounting treatment methods of business merger under the common control and not
under the common control
(1) Business combination under common control
The assets and liabilities acquired by the Company in a business combination are measured at the book value of
the combined party in the consolidated financial statements of the ultimate controlling party as of the combination date.
61Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
For any differences in accounting policies adopted by the combined party and the Company prior to the business
combination the accounting policies are unified based on the materiality principle i.e. the book values of the
combined party’s assets and liabilities are adjusted in accordance with the Company’s accounting policies. If there is a
difference between the book value of net assets acquired by the Company in the business combination and the book
value of the consideration paid the difference is first adjusted against capital surplus (capital premium or share
premium). If the balance of capital surplus (capital premium or share premium) is insufficient to cover the difference
the remaining amount is charged against surplus reserve and undistributed profit in sequence.
(2) Business combination not under common control
The identifiable assets and liabilities of the acquiree acquired by the Company in a business combination are
measured at their fair values as of the acquisition date. For any differences in accounting policies adopted by the
acquiree and the Company prior to the business combination the accounting policies are unified based on the
materiality principle i.e. the book values of the acquiree’s assets and liabilities are adjusted in accordance with the
Company’s accounting policies. If the combination cost of the Company at the acquisition date exceeds the fair value
of the identifiable assets and liabilities of the acquiree acquired in the business combination the difference is
recognized as goodwill; If the combined cost is less than the fair values of the identifiable assets and liabilities of the
acquiree acquired in the business combination the Company first reassesses the combined cost and the fair values of
the identifiable assets and liabilities of the acquiree acquired in the business combination. After reassessment if the
combined cost is still less than the fair values of the identifiable assets and liabilities of the acquiree acquired the
difference is recognized as profit or loss for the current period of the combination.
(3) Treatment of transaction costs in business combinations
Intermediary expenses such as audit legal services evaluation and consultation and other related management
expenses incurred for business combination are recognized in the current profit and loss upon occurrence.Transaction expenses on equity or debt securities issued as the combination consideration will be included in the
initially recognized amount of equity or debt securities.
7. Control criteria and preparation method of consolidated financial statements
(1) Judgment criteria for control and determination of consolidation scope
Control means the power owned over the investee by the Company which enjoys the variable return through
participating in activities related to the investee and has the ability to affect the return by using the power over the
investee. The definition of control includes three basic elements: first the investor has power over the investee;
second the investor is exposed or has rights to variable returns from its involvement with the investee; third the
investor has the ability to use its power over the investee to affect the amount of its returns. When the Company’s
investment in an investee meets the above three elements it indicates that the Company can control the investee.The consolidation scope of the consolidated financial statements is determined on the basis of control which
includes not only subsidiaries identified based on voting rights (or similar voting rights) alone or in combination with
other arrangements but also structured entities determined based on one or more contractual arrangements.A subsidiary refers to an entity controlled by the Company (including enterprises separable parts of an invested
entity and structured entities controlled by the enterprise etc.). A structured entity refers to an entity designed such
that voting rights or similar rights are not the determining factor when identifying its controlling party (Note: sometimes
also referred to as a special purpose entity).
(2) Method of preparing consolidated financial statements
The Company prepares consolidated financial statements based on the financial statements of itself and its
subsidiaries and other relevant information.
62Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
In preparing consolidated financial statements the Company regards the whole enterprise group as an
accounting entity and reflects the overall financial position operating results and cash flow of the enterprise group
according to the recognition measurement and presentation requirements of relevant accounting standards for
business enterprises and unified accounting policies and accounting period.* Consolidate assets liabilities owner's equity income expenses and cash flows of the parent company and
subsidiaries.* Offset the parent company's long-term equity investment in subsidiaries against the share of owner's equity
enjoyed by the parent company in subsidiaries.* The influence of internal transactions between the parent company and its subsidiaries and between
subsidiaries shall be offset. When internal trading indicates that related assets are impaired they shall be fully
recognized.* Adjust special transaction matters from the perspective of the corporate group.
(3) Special considerations in consolidation elimination
* The long-term equity investment held by a subsidiary in the Company shall be treated as the Company ’ s
treasury stock recognized as a deduction from owner's equity and presented under the item "Less: Treasury stock" in
the owner's equity section of the consolidated balance sheet.For long-term equity investments held between subsidiaries the method for eliminating the Company’s equity
investment in subsidiaries shall be applied by analogy i.e. offsetting such long-term equity investments against the
corresponding share of the subsidiary’s owner's equity.* Since the items "Special reserve" and "General risk reserve" neither belong to paid-in capital (or share capital)
or capital surplus nor are they the same as retained earnings or undistributed profit after offsetting the long-term
equity investment against the subsidiary’s owner's equity they shall be reinstated according to the share attributable to
the parent company’s owners.* If temporary differences arise between the book values of assets and liabilities in the consolidated balance
sheet and their tax bases in the respective tax entities due to the elimination of unrealized internal transaction profits
and losses deferred tax assets or deferred tax liabilities shall be recognized in the consolidated balance sheet with a
corresponding adjustment to income tax expense in the consolidated income statement except for deferred taxes
related to transactions or events directly recognized in owner's equity and business combinations.* Unrealized internal transaction profits and losses arising from the sale of assets by the Company to its
subsidiaries shall be fully offset against "Net profit attributable to owners of the parent company". Unrealized internal
transaction profits and losses arising from the sale of assets by a subsidiary to the Company shall be allocated and
offset between "Net profit attributable to owners of the parent company" and "Minority interests" in proportion to the
Company’s ownership percentage in that subsidiary. Unrealized internal transaction profits and losses arising from the
sale of assets between subsidiaries shall be allocated and offset between "Net profit attributable to owners of the
parent company" and "Minority interests" in proportion to the Company ’ s ownership percentage in the selling
subsidiary.* If the share of the current losses attributable to the minority shareholders of a subsidiary exceeds the share of
the owners’ equity attributable to minority shareholders of the subsidiary at the beginning of the period the balance
shall still be offset against the minority equity.
8. Classification of joint venture arrangements and accounting treatment of joint operations
A joint arrangement is an arrangement controlled jointly by two or more parties involved. Joint venture
arrangements of the Company are classified into joint operation and joint venture.
(1) Joint operation
63Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Joint operation refers to those joint venture arrangements under which the company is entitled to relevant assets
and be responsible for relevant liabilities.The Company recognizes the following items related to the share of interests in joint operation and carries out
accounting treatment in accordance with the relevant accounting standards for business enterprises:
* Recognize the assets held individually and the assets held jointly based on their shares;
* Recognize the liabilities assumed individually and the liabilities undertaken jointly based on their shares;
* Recognize the income generated from the sale of its share of joint operation output;
* Recognize the income generated from the sale of output in the joint operation based on their shares;
* Recognize the expenses incurred individually and the expenses incurred in joint operation based on their
shares.
(2) Joint venture
Joint venture refers to the arrangement where the company has rights to the net assets of the arrangement.The company accounts for investments in joint ventures according to the equity method of accounting for long-
term equity investments.
9. Recognition criteria for cash and cash equivalents
Cash refers to a company's cash on hand and deposits available for immediate payment. Cash equivalent refers
to the short-term (due within three months upon the purchase date) investment with strong liquidity that is easily
convertible to known amounts of cash and subject to low value change risk.
10. Foreign currency transactions and conversion of foreign currency financial statements
(1) Determination method of conversion rate for foreign currency transactions
At the initial recognition of foreign currency transactions the Company converts them into the functional
currency using the spot exchange rate on the transaction date or an exchange rate that is determined through a
systematic and reasonable method and approximates the spot exchange rate on the transaction date (hereinafter
referred to as the approximate exchange rate).
(2) Conversion method for foreign currency monetary items on the balance sheet date
On the balance sheet date foreign currency monetary items are converted using the spot exchange rate on the
balance sheet date. Exchange differences arising from the difference between the spot exchange rate on the balance
sheet date and the spot exchange rate at initial recognition or on the previous balance sheet date are included in the
current profit or loss. For foreign currency non-monetary items measured at historical cost they are still converted
using the spot exchange rate on the transaction date; for foreign currency non-monetary items measured at fair value
they are converted using the spot exchange rate on the date when the fair value is determined. The difference
between the converted functional currency amount and the original functional currency amount is recognized in the
current profit or loss.
(3) Translation method of foreign currency financial statements
Before converting the financial statements of overseas operations the accounting periods and policies of the
overseas operations are adjusted to be consistent with those of the Company. Then financial statements in the
relevant currency (a currency other than the functional currency) are prepared based on the adjusted accounting
policies and periods and the financial statements of overseas operations are converted in accordance with the
following methods:
64Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
* Assets and liabilities items in the balance sheet are converted using the spot exchange rate on the balance
sheet date. For owner's equity items except for the "Undistributed profit" item other items are converted using the
spot exchange rate on the date of occurrence.* Income and expense items in the income statement are converted using the spot exchange rate on the
transaction date or an approximate exchange rate.* Foreign currency cash flows and cash flows of overseas subsidiaries are converted using the spot exchange
rate on the cash flow occurrence date or the approximate exchange rate. The impact of exchange rate changes on
cash shall be presented as a reconciliation item separately in the cash flow statement.* The foreign currency financial statement conversion differences arising are presented separately as "Other
comprehensive income" under the owner's equity items in the consolidated balance sheet when preparing
consolidated financial statements.When an overseas operation is disposed of and control is lost the foreign currency statement conversion
differences related to the overseas operation which are presented under the owner's equity items in the balance sheet
are transferred in full or in proportion to the disposal of the overseas operation to the profit or loss of the current period
of disposal.
11. Financial instruments
Financial instruments refer to contracts that form a financial asset of one party and a financial liability or equity
instrument of another party.
(1) Recognition and derecognition of financial instruments
The relevant financial asset or financial liability is recognized when the Company becomes a party to a financial
instrument contract.A financial asset is derecognized if it meets one of the following conditions:
* The contractual right to receive cash flows from the financial asset has expired;
* The financial asset has been transferred and meets the derecognition conditions for the transfer of financial
assets.A financial liability (or part of it) is de-recognized when the present obligation is terminated. If the Company
(debtor) enters into an agreement with the creditor to replace an original financial liability with a new financial liability
and the terms of the new liability are substantially different from the original one the original financial liability is de-
recognized and the new financial liability is recognized at the same time. If the company makes a substantial
modification to the contractual terms of an original financial liability (or part of it) the original financial liability should be
derecognized and a new financial liability should be recognized according to the modified terms.The financial assets purchased and sold in regular way shall be subject to accounting recognition and
derecognition on the trading date. Regular way to buy and sell financial assets refers to the delivery of financial assets
according to the time schedule determined by regulations or market practices as stipulated in the contract terms. A
trading day refers to the date on which the company commits to buying or selling financial assets.
(2) Classification and measurement of financial assets
Based on the business model of managing financial assets and the contractual cash flow characteristics of
financial assets the Company classifies upon initial recognition financial assets into financial assets measured at
amortized cost financial assets measured at fair value through current profit or loss and financial assets measured at
fair value through other comprehensive income. Unless the Company changes its business model for managing
financial assets in which case all affected financial assets are reclassified on the first day of the first reporting period
following the change in business model financial assets shall not be reclassified after initial recognition.
65Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Financial assets are measured at fair value at initial recognition. For financial assets measured at fair value with
changes recognized in profit or loss related transaction costs are directly recognized in profit or loss. For other
categories of financial assets related transaction costs are included in their initial recognition amount. Notes
receivable and accounts receivable arising from the sale of goods or provision of services which do not include or
consider significant financing components are initially measured at the transaction price defined by the revenue
standard.Subsequent measurement of financial assets depends on their classification:
* Financial assets measured at amortized cost
Financial assets are classified as measured at amortized cost if they meet the following conditions: the business
model of the Company managing the financial assets is aimed at collecting contractual cash flows; The contractual
terms of the financial asset stipulate that the cash flows generated on a specific date consist solely of payments of
principal and interest based on the outstanding principal amount. For such financial assets subsequent measurement
is at amortized cost using the effective interest method. Gains or losses from derecognition amortization using the
effective interest method or impairment are included in the current profit or loss.* Financial assets measured at fair value with changes recognized in other comprehensive income
Financial assets are classified as measured at fair value through other comprehensive income if they meet the
following conditions: the business model for managing the financial assets is both to collect contractual cash flows and
to sell the financial assets; The contractual terms of the financial asset stipulate that the cash flows generated on a
specific date consist solely of payments of principal and interest based on the outstanding principal amount. For such
financial assets subsequent measurement is at fair value. Except for impairment losses or gains and exchange gains
or losses recognized in current profit or loss changes in the fair value of such financial assets are recognized as other
comprehensive income until derecognition at which point cumulative gains or losses are transferred to current profit or
loss. However interest income from the financial asset calculated using the effective interest method is included in the
current profit or loss.The company irrevocably chooses to designate some non-trading equity instrument investments as financial
assets measured at fair value with changes included in other comprehensive income only including related dividend
income in the current profit or loss. Fair value changes are recognized as other comprehensive income until the
financial asset is derecognized at which point cumulative gains or losses are transferred to retained earnings.* Financial assets measured at fair value through current profit or loss
Financial assets except the above financial assets measured at amortized cost and financial assets measured at
fair value through other comprehensive income are classified as financial assets measured at fair value through
current profit or loss. The financial assets are subsequently measured at fair value. All changes in fair value shall be
included in current profit or loss.
(3) Classification and measurement of financial liabilities
The company classifies financial liabilities as financial liabilities measured at fair value with changes included in
current profit or loss loan commitments with below-market interest rates financial guarantee contract liabilities and
financial liabilities measured at amortized cost.Subsequent measurement of financial liabilities depends on their classification:
* Financial liabilities measured at fair value with changes recognized in profit or loss for the period
This category includes trading financial liabilities (including derivatives that are financial liabilities) and those
designated as measured at fair value through profit or loss. After initial recognition such financial liabilities are
subsequently measured at fair value with gains or losses (including interest expenses) included in the current profit or
loss except for those related to hedge accounting. For financial liabilities designated as measured at fair value with
changes included in current profit or loss changes in fair value of the financial liabilities due to the changes in the
66Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
company's own credit risk are included in other comprehensive income. When the financial liabilities are derecognized
the cumulative gains and losses previously included in other comprehensive income should be transferred out of other
comprehensive income and into retained earnings.* Loan commitments and financial guarantee contract liabilities
A loan commitment is a commitment by the company to provide a loan to a customer under established
contractual terms during the commitment period. Loan commitments are provided for impairment losses in accordance
with the expected credit loss model.A financial guarantee contract refers to an agreement that requires the company to compensate the contract
holder for a specific amount if a particular debtor fails to repay the debt on the due date according to the original or
modified terms of the debt instrument. Financial guarantee contract liabilities are subsequently measured at the higher
of the loss allowance amount determined according to the impairment principles of financial instruments and the
balance of the initial recognition amount minus the cumulative amortization amount determined according to the
revenue recognition principles.* Financial liabilities measured at amortized cost
After initial recognition other financial liabilities are measured at amortized cost using the effective interest
method.Except in special circumstances financial liabilities and equity instruments are distinguished according to the
following principles:
* If the company cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or other
financial assets the obligation meets the definition of a financial liability. Some financial instruments although not
explicitly containing terms and conditions that obligate the delivery of cash or other financial assets may indirectly give
rise to contractual obligations through other terms and conditions.* If a financial instrument must or can be settled using the company's own equity instruments it is necessary to
consider whether the company's own equity instruments used for settlement are substitutes for cash or other financial
assets or to allow the holder of the instrument to enjoy residual equity in the issuer's assets after deducting all
liabilities. If it is the former the instrument is a financial liability of the issuer. If it is the latter the instrument is an equity
instrument of the issuer. In some cases a financial instrument contract stipulates that the company must or can settle
the financial instrument using its own equity instruments where the amount of the contractual right or obligation equals
the number of its own equity instruments to be acquired or delivered multiplied by their fair value at settlement.Regardless of whether the amount of the contractual right or obligation is fixed or varies completely or partially based
on variables other than the market price of the company's own equity instruments (such as interest rates the price of a
commodity or the price of a financial instrument) the contract is classified as a financial liability.
(4) Derivative financial instruments and embedded derivatives
Derivative financial instruments are initially measured at fair value on the date when the derivative transaction
contract is entered into and subsequently measured at fair value. Derivative financial instruments with a positive fair
value are recognized as assets and those with a negative fair value are recognized as liabilities.Except for the portion of cash flow hedges that is effective and included in other comprehensive income and
transferred to current profit or loss when the hedged item affects profit or loss gains or losses arising from changes in
the fair value of derivatives are directly included in current profit or loss.For hybrid instruments containing embedded derivatives such as those where the main contract is a financial
asset the hybrid instrument as a whole is subject to the relevant provisions for the classification of financial assets. If
the master contract is not a financial asset and the hybrid instrument is not accounted for at fair value with changes
recognized in current profit or loss the embedded derivative instruments are not closely related to the master contract
in terms of economic characteristics and risks and the independent instrument that has the same conditions as the
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embedded derivative instruments meets the definition of derivative instruments the embedded derivative instruments
shall be split from the hybrid instruments and treated as separate derivative financial instruments. If the fair value of
the embedded derivative instrument cannot be measured separately on the acquisition date or subsequent balance
sheet dates the whole hybrid instrument is designated as a financial asset or financial liability at fair value through
current profit or loss.
(5) Impairment of financial instruments
The company recognizes loss provisions based on expected credit losses for financial assets measured at
amortized cost debt investments measured at fair value with changes included in other comprehensive income
contract assets lease receivables loan commitments and financial guarantee contracts.Measurement of expected credit losses
Expected credit loss refers to the weighted average of credit losses on financial instruments weighted by the
risk of default. Credit loss refers to the difference between all contractual cash flows receivable under the contract and
all cash flows expected to be received by the Company discounted at the original effective interest rate i.e. the
present value of the total cash shortfall. For financial assets acquired or originated that have experienced credit
impairment they shall be discounted using the effective interest rate adjusted for credit.Lifetime expected credit loss refers to the expected credit loss resulting from all possible default events that may
occur throughout the entire estimated life of a financial instrument.
12-month expected credit loss refers to the expected credit loss resulting from default events on a financial
instrument that may occur within 12 months after the balance sheet date (or within the estimated life of the financial
instrument if its estimated life is less than 12 months) and it is a part of the lifetime expected credit loss.On each balance sheet date the company measures expected credit losses for financial instruments at different
stages separately. A financial instrument is in Stage I if its credit risk has not increased significantly since initial
recognition. For such instruments the Company measures the loss allowance based on the 12-month expected credit
losses. A financial instrument is in Stage II if its credit risk has increased significantly since initial recognition but no
credit impairment has occurred. For such instruments the Company measures the loss allowance based on the
lifetime expected credit losses of the instrument. A financial instrument is in Stage III if it has become credit-impaired
since initial recognition. For such instruments the Company measures the loss allowance based on the lifetime
expected credit losses of the instrument.For financial instruments with low credit risk at the balance sheet date the Company assumes that their credit
risk has not increased significantly since initial recognition and measures the loss allowance based on the 12-month
expected credit losses.For financial instruments in Stage I Stage II and those with low credit risk the Company calculates interest
income based on their carrying amounts (before deducting impairment allowances) and the effective interest rate. For
financial instruments in Stage III the Company calculates interest income based on their amortized cost (carrying
amounts less accumulated impairment allowances) and the effective interest rate.
(6) Transfer of financial assets
Transfer of financial assets refers to the following two situations:
A. Transfer the contractual right to receive cash flows from the financial asset to another party;
B. Transfer the financial asset in whole or in part to another party but retain the contractual right to receive cash
flows from the financial asset and assume the contractual obligation to pay the received cash flows to one or more
recipients.* Derecognition of transferred financial assets
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If substantially all risks and rewards of ownership of a financial asset have been transferred to the transferee or
if neither transferred nor retained but control over the financial asset is relinquished the financial asset is
derecognized.In determining whether control over the transferred financial asset has been relinquished consider the
transferee's actual ability to sell the financial asset. If the transferee can unilaterally sell the transferred financial asset
to an unrelated third party without additional conditions for restrictions on such sales the company has relinquished
control over the financial asset.When determining whether the transfer of a financial asset meets the conditions for derecognition the company
focuses on the substance of the transfer.If the entire transfer of financial asset satisfies the criteria for de-recognition the difference between the amounts
of the following two items shall be included in the current profit or loss:
A. The book value of the financial asset transferred;
B. The consideration received from the transfer plus the amount in the cumulative change in fair value originally
included in other comprehensive income for the derecognized portion (involving transferred financial assets classified
as measured at fair value with changes included in other comprehensive income according to Article 18 of the
Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments).If financial assets are partially transferred which meets the de-recognition condition the book value of the entire
financial asset transferred is allocated between the de-recognized part and the not de-recognized part (in this case
the retained servicing asset is considered part of the continuing recognized financial asset) based on their relative fair
values on the transfer date. The difference between the following two amounts is recognized in the current profit or
loss:
A. The book value of the de-recognized part on the de-recognition date;
B. The consideration for the derecognized portion plus the amount in the cumulative change in fair value
originally included in other comprehensive income for the derecognized portion (involving transferred financial assets
classified as measured at fair value with changes included in other comprehensive income according to Article 18 of
the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments).* Continuing involvement in the transferred financial assets
If the enterprise has neither transferred nor retained substantially all the risks and rewards of ownership and has
not relinquished control over the financial asset it shall continue to recognize the financial asset to the extent of its
continuing involvement and a corresponding liability is recognized.The term "continuous involvement in the transferred financial asset" refers to the extent to which the enterprise
bears the risks or rewards of changes in the value of the transferred financial asset.* Continuing recognition of the transferred financial assets
If substantially all risks and rewards of ownership of the transferred financial asset are retained continue to
recognize the entire transferred financial asset and recognize the consideration received as a financial liability.The financial asset and the recognized related financial liability shall not be offset against each other. In
subsequent accounting periods the enterprise should continue to recognize income (or gains) generated by the
financial asset and expenses (or losses) generated by the financial liability.
(7) Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities shall be presented separately in the balance sheet without offsetting
each other. However if the following conditions are met they are presented in the Balance Sheet as a net amount
after offsetting:
The Company has a legally enforceable right to offset the recognized amounts and this right is currently
enforceable;
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The Company intends to settle on a net basis or to realize the financial asset and settle the financial liability
simultaneously.For financial asset transfers that do not meet the derecognition conditions the transferor shall not offset the
transferred financial assets and related liabilities.
12. Notes receivable
The basis for determining the combination for notes receivable is as follows:
Notes receivable portfolio 1: commercial acceptance bills
Notes receivable portfolio 2: bank acceptance bills
For notes receivable classified as a portfolio the company calculates expected credit losses by referencing
historical credit loss experience combined with current conditions and forecasts of future economic conditions
through default risk exposure and lifetime expected credit loss rate.
13. Accounts receivable
The basis for determining the combination for accounts receivable is as follows:
Accounts receivable portfolio 1: receivables from customers
For accounts receivable classified as a portfolio the company prepares a comparison table of accounts
receivable aging and lifetime expected credit loss rates to calculate expected credit losses by referencing historical
credit loss experience and combined with current conditions and forecasts of future economic conditions.
14. Receivables financing
Not applicable
15. Other receivables
Other receivables portfolio 1: receivables for margins and deposits
Other receivables portfolio 2: receivables for employee reserve
Other receivables portfolio 3: receivables for other items
For other receivables classified as a portfolio the company calculates expected credit losses by referencing
historical credit loss experience combined with current conditions and forecasts of future economic conditions
through default risk exposure and 12-month or lifetime expected credit loss rate.
16. Contract assets
The COOEC presents contract assets or contract liabilities in the balance sheet based on the relationship
between its performance of fulfillment obligations and customer payments. If the Company has transferred the right to
receive consideration for goods transferred or services provided to customers and the right depends on factors other
than the passage of time it is presented as a contract asset. The COOEC's obligation to transfer goods or provide
services to customers for consideration receivable for goods received is presented as contract liabilities.The Company's determination method and accounting treatment method of expected credit loss of contractual
assets are detailed in the Notes V.11.
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Contract assets and contract liabilities are presented separately on the balance sheet. Contract assets and
contract liabilities under the same contract are presented net. If the net amount is a debit balance it should be
presented under 'Contract assets' or 'Other non-current assets' depending on its liquidity; if the net amount is a credit
balance it should be presented under 'Contract liabilities' or 'Other non-current liabilities' depending on its liquidity.Contract assets and contract liabilities under different contracts cannot be offset against each other.
17. Inventories
(1) Classification of inventory
Inventory refers to the finished products or goods held for sale products in production and materials and
supplies consumed during the production process or service provision that the Company holds in its daily activities
including raw materials products in production and finished products (commodity stocks).
(2) Measurement method of dispatched inventories
Raw materials and inventory items of the Company are issued using the weighted average method for valuation
except for branded watch inventory items which are valued using the specific identification method.
(3) Inventory system
The company uses a perpetual inventory system and conducts at least one inventory count per year with gains
and losses included in the profit or loss for the current year.
(4) Recognition standard and calculation method of provision for inventory depreciation reserve
On the balance sheet date inventory is measured at the lower of cost and net realizable value. If inventory cost
exceeds net realizable value a provision for inventory impairment is made and included in the current profit or loss.When determining the net realizable value of inventory reliable evidence is used considering the purpose of
holding inventory and the impact of events after the balance sheet date.* In normal operation process for inventories held directly for sale including finished goods commodities and
held-for-sale materials their net realizable values are determined at the estimated selling prices minus the estimated
selling expenses and relevant taxes and surcharges. For inventories held for execution of sales contracts or service
contracts the contract price is used as the measurement basis for their net realizable value. If the quantity of
inventories held exceeds the quantity ordered in the sales contract the net realizable value of the excess inventories is
measured based on the general sales price. For materials held for sale etc. the market price is used as the
measurement basis for their net realizable value.* In normal production and operation process for material inventories that need further processing their net
realizable values are determined at the estimated selling prices of finished goods minus estimated costs to completion
estimated selling expenses and relevant taxes and surcharges. If the net realizable value of the finished products
produced using the materials is higher than their cost such materials are measured at cost. If a decline in the price of
the materials indicates that the net realizable value of the finished products is lower than their cost such materials are
measured at their net realizable value and a provision for inventory write-down is recognized for the difference.* The company generally makes provisions for inventory write-downs on an individual inventory item basis. For
inventories with large quantities and low unit prices provisions are made by inventory category.* At the balance sheet date if the factors that led to the inventory write-down have disappeared the amount of
the write-down is reversed and included in the current profit and loss within the amount of inventory impairment
provision originally recognized.
18. Assets held for sale
Not applicable
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19. Debt investment
Not applicable
20. Other debt investment
Not applicable
21. Long-term receivables
Not applicable
22. Long-term equity investments
The Company's long-term equity investments include equity investments in the invested entities over which it
has control significant influence or joint ventures. Where the Company is able to have significant influences on an
investee the investee is its associate.
(1) Determination basis of joint control or significant influences on the investee
Common control refers to the control shared over an arrangement in accordance with the relevant stipulations
and the decision-making of related activities of the arrangement should not be made before the party sharing the
control right agrees the same. In determining whether joint control exists the first step is to judge whether all parties or
a group of parties collectively control the arrangement. If all parties or a group of parties must act unanimously to
decide on the relevant activities of an arrangement it is considered that all parties or the group of parties collectively
control the arrangement. The second step is to judge whether decisions on the relevant activities of the arrangement
must be made with the unanimous consent of these parties that collectively control the arrangement. If there are two or
more groups of parties that can collectively control an arrangement it does not constitute joint control. Protective rights
held are not considered when determining whether joint control exists.Significant influence refers to the power to participate in decision-making over the financial and operating
policies of the investee without having control or joint control over the formulation of those policies. In determining
whether the investor can exert significant influence over the investee consideration is given to the voting shares
directly or indirectly held by the investor in the investee as well as the impact of currently exercisable potential voting
rights held by the investor and other parties assuming such rights are converted into equity in the investee. This
includes the impact of currently convertible warrants share options and convertible corporate bonds issued by the
investee.When the Company directly or indirectly holds through its subsidiaries 20% or more (inclusive) but less than
50% of the voting shares of an investee it is generally considered to have significant influence over the investee
unless there is clear evidence that it cannot participate in the production and operation decision-making of the investee
under such circumstances in which case significant influence is not formed.
(2) Determination of initial investment costs
The investment cost of long-term equity investments formed through business combinations is determined as
follows:
A. In business combinations under common control where the combining party uses the cash payment transfer
of non-cash assets or assumption of debts as the consideration for the combination the initial investment cost of the
long-term equity investment shall be determined on the combination date as the share of the book value of the owner's
equity of the combined party in the consolidated financial statements of the ultimate controlling party. Capital reserves
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shall be adjusted according to the difference between the initial investment cost of long-term equity investment and the
book value of cash paid non-cash assets transferred and debts assumed; If the capital reserve is insufficient to cover
the difference the retained earnings shall be adjusted;
B. In business combinations under common control where the combining party uses the issuance of equity
securities as the consideration for the combination the initial investment cost of the long-term equity investment shall
be determined on the combination date as the share of the book value of the owner's equity of the combined party in
the consolidated financial statements of the ultimate controlling party. The total par value of the issued shares is
recognized as share capital. The difference between the initial investment cost of the long-term equity investment and
the total par value of the issued shares is adjusted to capital reserve; If the capital reserve is insufficient to cover the
difference the retained earnings shall be adjusted;
C. In business combinations not under common control the combination cost is measured based on the fair
value of the assets paid liabilities incurred or assumed and equity securities issued to obtain control over the acquiree
on the acquisition date and determined as the initial investment cost of the long-term equity investment. Intermediary
expenses such as audit legal services evaluation and consultation and other related management expenses incurred
by the combining party for business combination are recognized in the current profit and loss upon occurrence.Apart from long-term equity investments formed through business combinations the investment cost of other
long-term equity investments is determined as follows:
A. Long-term equity investments acquired by paying cash are measured at the actual acquisition price as the
investment cost. Initial investment cost includes directly related expenses taxes and other necessary expenditures
incurred in acquiring the long-term equity investment;
B. Long-term equity investments acquired by issuing equity securities are measured at the fair value of the
issued securities as the initial investment cost;
C. For long-term equity investments obtained through the exchange of non-monetary assets if the exchange
has commercial substance and the fair value of the asset received or the asset given up can be reliably measured the
initial investment cost is based on the fair value of the asset given up and related taxes. The difference between the
fair value and the book value of the asset given up is included in the current profit or loss. If the exchange of non-
monetary assets does not meet both conditions the initial investment cost is based on the book value of the asset
given up and related taxes.D. For long-term equity investments obtained through debt restructuring the book value is determined based on
the fair value of the creditor's rights waived and other costs such as taxes directly attributable to the asset. The
difference between the fair value and the book value of the waived creditor's rights is included in the current profit or
loss.
(3) Subsequent measurements and recognition of profit or loss
Long-term equity investments where the company can implement control over the investee are accounted for
using the cost method. Long-term equity investments in its associates and joint ventures are calculated under the
equity method.* Cost method
For long-term equity investments accounted for using the cost method the cost of the long-term equity
investments shall be adjusted when additional investments are made or investments are withdrawn. Cash dividends or
profits declared by the investee are recognized as current investment income.* Equity method
Under the equity method of accounting for long-term equity investments the general accounting treatments are
as follows:
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If the cost of a long-term equity investment of the Company is greater than the fair value share of the identifiable
net assets of the investee at the time of investment the initial investment cost is not adjusted; if the initial investment
cost is less than the share of the fair value of identifiable net assets of the investee at the time of investment the
difference is recognized in the current profit and loss and the cost of the long-term equity investment is adjusted
accordingly.The Company shall recognize the investment income and other comprehensive income at the shares of net
profit or loss and other comprehensive income realized by the investee which the Company shall enjoy or bear and
adjust the book value of long-term equity investments at the same time; The Company shall calculate the shares
according to profits or cash dividends declared by the investee and correspondingly reduce the book value of long-
term equity investments; For changes in the investee's equity other than net profits or losses other comprehensive
income and profit distribution the book value of long-term equity investment shall be adjusted and included in the
owner's equity. When recognizing the share of net profit or loss of the investee that should be enjoyed the net profit of
the investee shall be recognized after adjustment on the basis of the fair value of the identifiable net assets of the
investee when the investment is obtained. If the accounting policies and accounting period adopted by the investee
are inconsistent with those of the Company the financial statements of the investee shall be adjusted in accordance
with the accounting policies and accounting periods of the Company and the investment income and other
comprehensive income shall be recognized accordingly. Unrealized profits and losses of internal transactions between
the Company and its associates and joint ventures shall be offset by the portion that belongs to the Company
according to the due proportion and the investment profits and losses shall be recognized on this basis. Where the
unrealized internal transaction losses between the Company and the investee fall into the scope of assets impairment
loss the full amount of such losses should be recognized.If additional investments or other reasons enable significant influence or joint control over the investee without
constituting control the initial investment cost for equity method accounting is the sum of the fair value of the original
equity investment and the additional investment cost. For equity investments previously held classified as other equity
instrument investments the difference between their fair value and book value as well as the accumulated gains or
losses previously included in other comprehensive income should be transferred from other comprehensive income to
retained earnings in the period when they are accounted for using the equity method.If the joint control or significant influence over the investee is lost due to the disposal of part of the equity
investments the remaining equity investments after the disposal shall be measured at fair value and the difference
between the fair value and the book value on the date of losing joint control or significant influence shall be recognized
in current profit or loss. For original equity investments that recognized other comprehensive income under the equity
method other comprehensive income shall be subject to accounting treatment on the same basis as if the investee
had directly disposed of the related assets or liabilities not under the equity method.
(4) Impairment test method and drawing method of impairment provision
For investments in subsidiaries associates and joint ventures the method for asset impairment provision is
detailed in Note V 30.
23. Investment properties
Measurement model of investment property
Measured under cost method
Depreciation and amortization methods
(1) Classification of investment property
Investment property refers to property held to earn rent or for capital appreciation or both. It mainly includes:
* Leased land use rights.
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* Land use right held for transfer upon appreciation.* Leased buildings.
(2) Measurement model of investment property
The company uses the cost model for subsequent measurement of investment property. For asset impairment
provision methods see Note V 30.The Company calculates depreciation or amortization of investment properties using the straight-line method
after deducting accumulated impairment and net residual value from their cost. The depreciation period and annual
depreciation rate are determined based on the categories of investment properties their estimated economic useful
life and the estimated net residual value rate as follows:
Type Depreciation life (year) Residual value rate (%) Annual depreciation rate (%)
Houses and buildings 20-35 5.00 2.71-4.85
24. Fixed assets
(1) Recognition conditions
A fixed asset shall be recognized at its actual cost at the time of acquisition when it simultaneously meets the
following conditions:
* It is probable that the economic benefits associated with the fixed asset will flow into the enterprise.* The cost of the fixed asset can be measured reliably.Subsequent expenditures incurred on fixed assets that meet the recognition criteria for fixed assets are included
in the cost of fixed assets; Those that do not meet the recognition criteria for fixed assets are included in the current
profits and losses when incurred.For fixed assets with impairment provisions already recognized the accumulated impairment provisions shall be
deducted when calculating depreciation.At the end of each year the company reviews the useful life estimated net residual value and depreciation
method of fixed assets. If there is a difference between the estimated useful life and the original estimate the useful
life of fixed assets is adjusted.
(2) Depreciation method
Type Depreciation method Depreciation period Residual value rate Annual depreciationrate
Buildings and
constructions Straight-line method 20-35 5% 2.71%-4.85%
Machinery
equipment Straight-line method 10 5%-10% 9%-9.5%
Electronic equipment Straight-line method 5 5% 19%
Transportation
facilities Straight-line method 5 5% 19%
Other equipment Straight-line method 5 5% 19%
25. Construction in progress
(1) Construction in progress is accounted for by classification of approved projects.
(2) Standard and timing for transferring of construction in progress to fixed assets
The total expenses incurred before the construction in progress asset is ready for its intended use are recorded
as the entry value of the fixed asset. This includes construction costs original price of machinery and equipment other
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necessary expenses incurred to bring construction in progress to its intended usable state and borrowing costs
incurred from specific borrowings for the project and general borrowings occupied by the project before the asset
reaches its intended usable state. The company transfers construction in progress to fixed assets when the installation
or construction is completed and it reaches its intended usable state. Fixed assets constructed that have reached the
intended usable state but for which completion settlement has not yet been finalized shall be transferred to fixed
assets at the estimated value based on the project budget cost or actual project expenses etc. starting from the date
when they attain the intended usable state. Depreciation on such fixed assets shall be accrued in accordance with the
Company's fixed asset depreciation policy. Upon completion of the final settlement the original provisional estimated
value shall be adjusted to the actual cost; however the depreciation amount already accrued shall not be adjusted.
26. Borrowing costs
(1) Recognition principle of capitalization of borrowing costs and capitalization period
Borrowing costs incurred by the company that can be directly attributed to the acquisition construction or
production of an asset eligible for capitalization are capitalized and recorded into the related asset costs when the
following conditions are met:
* The asset disbursement has already incurred;
* The borrowing costs have already incurred;
* Purchase construction or manufacturing activities that are necessary to prepare the assets for their intended
use are in progress.Other borrowing interest discount or premium and exchange differences are included in the profit or loss of the
period in which they occur.If the acquisition and construction or production activities of assets eligible for capitalization are abnormally
interrupted and such condition lasts for more than three months the capitalization of borrowing costs should be
suspended.Capitalization of borrowing costs should be ceased when the acquired and constructed or produced assets
eligible for capitalization have reached their intended use or sale condition; Subsequent borrowing costs are
recognized as expenses in the period they occur.
(2) Calculation method of capitalization rate and capitalization amount of borrowing costs
As for special borrowings borrowed for acquiring and constructing or producing assets eligible for capitalization
interest costs of special borrowing actually incurred in this period less the interest income of the borrowings unused
and deposited in bank or return on temporary investment shall be recognized as the capitalization amount of interest
costs of special borrowing.If a general borrowing is used for the acquisition construction or production of an asset that qualifies for
capitalization the amount of interest on the general borrowing to be capitalized shall be determined by multiplying the
weighted average of the cumulative asset expenditures in excess of specific borrowings by the capitalization rate of
the general borrowing used. The capitalization rate is determined via the calculation at the weighted average interest
rate of general borrowings.
27. Biological assets
Not applicable
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28. Oil and gas assets
Not applicable
29. Intangible assets
(1) Service life and its determination basis estimation amortization method or review procedure
1) Measurement
Recorded at actual cost at acquisition.
2) Useful life and amortization of intangible assets
* Estimate of the useful lives of the intangible assets with definite useful lives:
Item Estimated service life Basis
Land use rights 50 years Legal rights of use
Software system 5 years Determine the useful life of an asset based on the period it cangenerate economic benefits for the company
Trademark use right 5-10 years Determine the useful life of an asset based on the period it cangenerate economic benefits for the company
At the end of each year the company reviews the useful life and amortization method of intangible assets with
limited useful life. Upon review there were no changes in the estimated useful life and amortization method of
intangible assets at the end of the current period.* Intangible assets for which there is no foreseeable limit to the period over which they are expected to generate
economic benefits for the Company are classified as indefinite useful life intangible assets. For intangible assets with
indefinite useful life the company reviews their useful life at the end of each year. If the useful life is still indefinite after
review an impairment test is conducted on the balance sheet date.* Amortization of intangible assets
For intangible assets with limited useful life the company determines their useful life at acquisition and
amortizes them systematically using the straight-line method over their useful life. The amortization amount is included
in the current profit or loss according to the benefiting items. The specific amortization amount is the cost minus the
estimated residual value. For intangible assets with impairment provisions already recognized the accumulated
amount of impairment provisions for intangible assets that have been accrued shall also be deducted. For intangible
assets with a limited useful life their residual value is regarded as zero except in the following cases: there is a third
party that undertakes to purchase the intangible asset at the end of its useful life; or the estimated residual value
information can be obtained from an active market and it is highly probable that such a market will exist at the end of
the intangible asset's useful life.Intangible assets with indefinite useful life are not amortized. At the end of each year the useful life of intangible
assets with an indefinite useful life is reviewed. If there is evidence indicating that the useful life of the intangible asset
is limited its useful life is estimated and it is systematically and reasonably amortized over the expected useful life.
(2) Collection scope of R&D expenses and related accounting treatment methods
1) Collection scope of R&D expenditure
The company collects expenses directly related to R&D activities as R&D expenditure including salaries of R&D
personnel direct input costs depreciation and long-term deferred expenses design fees equipment debugging fees
intangible asset amortization expenses outsourced R&D fees and other expenses.
2) Specific standards for classifying the research stage and development stage of the internal research and
development projects
* The company considers data and related preparation activities for further development as the research phase.Expenses in the research phase of intangible assets are recognized in the current profit or loss when incurred.
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* Development activities conducted after completing the research phase are considered as the development
phase.
3) Specific criteria for qualifying expenditure for capitalization on the development stage
Expenditures during the development phase can be recognized as intangible assets only when the following
conditions are met:
A. Complete such intangible asset to make it usable or salable with technical feasibility;
B. Intention of completing such intangible asset for use or sale;
C. The ways in which intangible assets generate economic benefits include being able to demonstrate that
products produced using the intangible assets have a market or that the intangible assets themselves have a market.If the intangible assets are intended for internal use their utility must be proven;
D. There is sufficient support from technical financial resources and other resources to complete development
of such intangible assets and the ability of using or selling such intangible assets;
E. The expenditures attributable to development stage of such intangible assets shall be measured reliably.
30. Long-term assets impairment
The impairment of long-term equity investments in subsidiaries associates and joint ventures investment
properties measured using the cost model for subsequent measurement fixed assets construction in progress right-
of-use assets and intangible assets is determined using the following method:
On the balance sheet date the company assesses whether there are any indications that an asset may be
impaired. If there are indications of impairment the company estimates the recoverable amount of the asset and
performs impairment testing. For goodwill arising from a business combination intangible assets with indefinite useful
lives and intangible assets that have not yet reached a usable state impairment tests are performed each year
regardless of whether there is an indication of impairment.The recoverable amount is determined at the higher of the net of the fair value less disposal costs and the
present value of the expected future cash flows. The company estimates the recoverable amount based on individual
assets; If it is difficult to estimate the recoverable amount of an individual asset the recoverable amount of the asset
group to which the asset belongs is determined. An asset group is identified based on whether the primary cash
inflows generated by the group are independent of the cash inflows from other assets or asset groups.When the recoverable amount of an asset or asset group is lower than its carrying amount the company writes
down the carrying amount to the recoverable amount. The amount of the write-down is recognized in current profit or
loss with a corresponding impairment provision recognized.For impairment testing if there is any indication of impairment in an asset group or combination of asset groups
related to goodwill the impairment test is first performed on the asset group or combination of asset groups excluding
goodwill to calculate the recoverable amount and recognize the corresponding impairment loss. Then the impairment
test is performed on the asset group or combination of asset groups including goodwill. The recoverable amount is
compared with the carrying amount. If the recoverable amount is lower than the carrying amount the impairment loss
of goodwill is recognized.Once recognized impairment losses for assets will not be reversed in subsequent accounting periods.
31. Long-term deferred expenses
Long-term deferred expenses account for the expenses which have been already incurred by the Company but
will be borne in this period and in the future with an amortization period of over 1 year.
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The company's long-term deferred expenses are amortized evenly over the benefit period. The amortization
periods for various expenses are as follows:
Item Amortization period
Counter production fee 2-3 years
Renovation costs 3-5 years
Others 2-3 years
32. Contract liabilities
The COOEC presents contract assets or contract liabilities in the balance sheet based on the relationship
between its performance of fulfillment obligations and customer payments. If the Company has transferred the right to
receive consideration for goods transferred or services provided to customers and the right depends on factors other
than the passage of time it is presented as a contract asset. The COOEC's obligation to transfer goods or provide
services to customers for consideration receivable for goods received is presented as contract liabilities.The Company's determination method and accounting treatment method of expected credit loss of contractual
assets are detailed in the Notes V.11.Contract assets and contract liabilities are presented separately on the balance sheet. Contract assets and
contract liabilities under the same contract are presented net. If the net amount is a debit balance it should be
presented under 'Contract assets' or 'Other non-current assets' depending on its liquidity; if the net amount is a credit
balance it should be presented under 'Contract liabilities' or 'Other non-current liabilities' depending on its liquidity.Contract assets and contract liabilities under different contracts cannot be offset against each other.
33. Employee compensation
(1) Accounting treatment of short-term compensation
Employee compensation refers to various forms of remuneration or compensation provided by the company for
services rendered by employees or for the termination of employment. The employee compensation mainly includes
short-term compensation post-employment benefits termination benefits and other long-term employee benefits.Benefits provided by the Company to the spouse children dependents dependents of deceased employee and other
beneficiaries are also included in employee compensation.Based on liquidity employee compensation is separately listed under 'Employee compensation payable' and
'Long-term employee compensation payable' in the balance sheet.
1) Accounting treatment of short-term compensation
* Basic employee compensation (wages bonuses allowances subsidies)
During the accounting period when employees provide services the Company recognizes the actual short-term
compensations as liabilities and includes in current profits and losses unless other accounting standards require or
allow such compensations to be included in the cost of assets.* Employee welfare expenses
Employee welfare expenses incurred by the company are recognized in the current profit or loss or related asset
costs when incurred based on the actual amount incurred. If employee welfare expenses are non-monetary benefits
they are measured at fair value.* Medical insurance premium work-related injury insurance premium maternity insurance premium other
social insurance premiums housing provident funds labor union fees and employee education expenses
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The medical insurance premium work-related injury insurance premium maternity insurance premium other
social insurance premiums and housing provident funds paid by the company for employees and the labor union fees
and employee education expenses accrued according to regulations shall be calculated according to the stipulated
contribution base and proportion to determine the amount of corresponding salary during the accounting period of
employees providing services to the company and the corresponding liabilities shall be recognized and included in
the current profit or loss or related asset costs.* Short-term compensated absences
The company recognizes employee compensation related to accumulated paid absences when employees
render services that increase their future entitlement to such absences and measures such compensation based on
the expected additional payment arising from the accumulated unexercised rights. The company recognizes employee
compensation related to non-accumulated paid absences in the accounting period when the employees actually take
the absences.* Short-term profit sharing plan
The company recognizes the relevant employee compensation payable when the profit-sharing plan meets the
following conditions simultaneously:
A. The enterprise has a present legal or constructive obligation to pay employee compensation as a result of
past events;
B. The amount of the obligation for employee compensation payable arising from the profit-sharing plan can be
reliably estimated.
(2) Accounting treatment of post-employment benefits
* Defined contribution plan
During the accounting period in which employees provide services the company recognizes the contributions
payable under defined contribution plans as a liability and includes them in the current profits and losses or the cost of
related assets.According to the defined contribution plan if it is expected that the full amount payable will not be paid within
twelve months after the end of the annual reporting period in which employees provide related services the company
measures the employee compensation payable at the discounted amount of the full amount payable referring to the
corresponding discount rate determined by the market yield of government bonds or high-quality corporate bonds in
active markets that match the term and currency of the obligation under the defined contribution plan as of the balance
sheet date.* Defined benefit plans
A. Determine the present value of the defined benefit plan obligation and the current service cost
In accordance with the projected unit credit method the obligations arising from defined benefit plans are
measured and the periods to which such obligations relate are determined by making unbiased and consistent
actuarial assumptions regarding relevant demographic and financial variables. The company discounts the obligations
arising from defined benefit plans using the corresponding discount rate (determined based on the market yields of
government bonds or high-quality corporate bonds in an active market that match the term and currency of the defined
benefit plan obligations as of the balance sheet date) to determine the present value of defined benefit plan obligations
and the current service cost.B. Recognize net liability or net asset of defined benefit plans
If there are assets in the defined benefit plan the Company recognizes the deficit or surplus formed by the
difference between the present value under defined benefit plan and the fair value of assets under defined benefit plan
as a net liability or net asset of the defined benefit plan.For a surplus of defined benefit plans COOEC should measure the net asset of such defined benefit plans at
the lower of the surplus of such defined benefit plans and the asset thereof.
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C. Determine the amount to be included in asset cost or current profit or loss
Service cost including current service cost past service cost and settlement gains or losses. Except for current
service cost required or allowed by other accounting standards to be included in asset cost other service costs are
included in current profit or loss.Net interests on net liability or net asset of defined benefit plans including interest income on plan assets
interest expense on defined benefit plan obligations and interest on the effect of asset ceiling are included in current
profit or loss.D. Determine the amount to be included in other comprehensive income
Changes arising from the re-measurement of net liabilities or net assets of defined benefit plan including:
(a) Actuarial gains or losses which are increases or decreases in the previously measured present value of
defined benefit plan obligations due to actuarial assumptions and experience adjustments;
(b) Return on plan assets excluding amounts included in net interest on net liability or net asset of defined
benefit plans;
(c) Changes in the effect of asset ceiling excluding amounts included in net interest on net liability or net asset
of defined benefit plans.The changes arising from the remeasurement of net liabilities or net assets of defined benefit plans are directly
included in other comprehensive income and cannot be reversed to profit or loss in subsequent accounting periods
but the company can transfer these amounts recognized in other comprehensive income within equity.
(3) Accounting treatment of dismissal benefits
Where the Company provides termination benefits for employees the Company shall recognize the employee
compensation liabilities arising from termination benefits at the earlier of the following two dates and include them in
current profits and losses:
* The date when the company cannot unilaterally withdraw the termination benefits provided due to the labor
relationship termination plan or the redundancy offer;
* The date when the company recognizes the costs or expenses related to restructuring of termination benefits
payment.If termination benefits are not expected to be fully paid within twelve months after the end of the annual reporting
period the termination benefit amount is discounted using the appropriate discount rate (determined based on the
market yield of government bonds or high-quality corporate bonds in active markets that match the term and currency
of the defined benefit plan obligations as of the balance sheet date) and the employee compensation payable is
measured at the discounted amount.
(4) Accounting treatment of other long-term employee's welfare
* Meeting the conditions of a defined contribution plan
For other long-term employee benefits provided by the company to employees that meet the conditions of a
defined contribution plan the employee compensation payable is measured as the discounted amount of the total
amount to be contributed.* Meeting the conditions of a defined benefit plan
At the end of the reporting period the Company recognizes employee compensation costs arising from other
long-term employee benefits as the following components:
A. Service cost;
B. Net interest on net liabilities or assets for other long-term employee benefits;
C. Changes resulting from the remeasurement of net liabilities or assets for other long-term employee benefits.To simplify the related accounting treatment the total net amount of the above items is recognized in the current
profit or loss or the cost of related assets.
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34. Estimated liabilities
(1) Recognition criteria for estimated liabilities
In case that an obligation connected to contingencies meets all of the follow conditions the Company recognizes
the obligation as a provision:
* The obligation is a present obligation of the Company;
* The fulfillment of the obligation is likely to result in an outflow of economic benefits from the Company;
* The amount of the obligation can be measured reliably.
(2) Measurement of estimated liabilities
Estimated liabilities are initially measured at the best estimate of the expenditures required to settle the present
obligation taking into account risks uncertainties the time value of money and other factors related to the
contingencies. The carrying amount of the estimated liabilities is reviewed at each balance sheet date. If there is
conclusive evidence that the carrying amount does not reflect the current best estimate the carrying amount is
adjusted to the current best estimate.
35. Share-based payment
(1) Types of share-based payments
The share-based payments of the Company include cash-settled share-based payments and equity-settled
share-based payments.
(2) Determination method for the fair value of equity instruments
* For shares granted to employees their fair value is measured based on the market price of the company's
shares with adjustments made to reflect the terms and conditions on which the shares are granted (excluding vesting
conditions other than market conditions). * For stock options granted to employees their market price is difficult to
obtain in many cases. If there are no traded options with similar terms and conditions the company selects an
appropriate option pricing model to estimate the fair value of the granted options.
(3) Basis for the best estimate of vesting equity instruments
At each balance sheet date within the vesting period the company shall make its best estimate based on
subsequent information such as changes in the number of employees eligible for vesting which have been newly
obtained and revise the estimated number of equity instruments expected to vest so as to determine the best
estimate of the equity instruments that will vest.
(4) Accounting treatment for the implementation of share-based payment plan
Cash-settled share-based payment
* If immediately exercisable upon grant the cash-settled share-based payments are recognized in related costs
or expenses at the fair value of the liabilities assumed by the Company at the grant date with a corresponding
increase in liabilities. On each balance sheet date and on each account date prior to the settlement the fair values of
the liabilities shall be re-measured and the changes included in the profit or loss.* For cash-settled share-based payment that becomes exercisable only after the completion of services during
the vesting period or the achievement of specified performance conditions on each balance sheet date within the
vesting period the services received in the current period shall be recognized as costs or expenses and corresponding
liabilities based on the best estimate of the exercisable situation and at the fair value of the liabilities assumed by the
Company.Equity-settled share-based payment
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* Equity-settled share-based payments for employee services that are exercisable immediately upon grant are
recognized in related costs or expenses at the fair value of the equity instruments on the grant date increasing capital
reserves accordingly.* For equity-settled share-based payments exchanged for employee services that can only be exercised after
the completion of the vesting period or upon meeting specified performance conditions at each balance sheet date
during the vesting period the company should account for the fair value of the equity instruments granted on the grant
date based on the best estimate of the number of equity instruments expected to vest by including the cost of the
services received for the period in the costs or expenses and capital reserves.
(5) Accounting treatment for the modification of share-based payment plan
When the company modifies a share-based payment plan if the modification increases the fair value of the
granted equity instruments the increase in services obtained is recognized correspondingly according to the increase
in fair value of the equity instruments; If the number of granted equity instruments increases due to modification the
fair value of the increased equity instruments is recognized as additional service costs. The increase in fair value of
equity instruments refers to the difference in fair value of the equity instruments on the modification date before and
after the modification. If a modification reduces the total fair value of the share-based payment or alters the terms and
conditions of the share-based payment plan in other ways that are unfavorable to employees the accounting
treatment for the services received shall continue as if the modification had never occurred unless the company
cancels some or all of the granted equity instruments.
(6) Accounting treatment for the termination of share-based payment plan
If the granted equity instruments are canceled or settled during the vesting period (excluding cancellations due
to failure to meet vesting conditions) the company:
* Treats the cancellation or settlement as an acceleration of vesting and immediately recognizes the amount
that would otherwise have been recognized over the remaining vesting period;
* Accounts for all payments made to employees upon cancellation or settlement as a repurchase of equity. The
portion of the repurchase payment exceeding the fair value of the equity instrument at the repurchase date is
recognized as an expense in the current period.If the company repurchases equity instruments that have already vested with its employees it reduces the
enterprise's owner's equity; The portion of the repurchase payment exceeding the fair value of the equity instrument at
the repurchase date is recognized in the current profit or loss.
36. Other financial instruments like preferred shares and perpetual bonds
Not applicable
37. Revenue
(1) Accounting policies adopted for revenue recognition and measurement disclosed by business type
(1) General principles
Revenue represents the total inflow of economic benefits arising from the ordinary activities of the Company
which results in an increase in shareholders' equity and is unrelated to contributions from shareholders.The Company recognizes revenue when its performance obligations as stipulated in the contract are fulfilled
that is when the customer obtained control of the related goods. Control over the relevant goods is transferred when
the customer can direct the use of and obtain substantially all the remaining benefits from the goods or services.Where the contract contains two or more performance obligations the Company will on the contract start date
allocate the transaction price to each individual performance obligation in the proportion of the individual selling price
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of the goods or services for which each individual performance obligation is committed and measure revenue based
on the transaction price allocated to each individual performance obligation.The transaction price is the consideration to which the Company expects to be entitled as a result of the transfer
of goods or provision of services to the customer excluding amounts collected on behalf of third parties. When
determining the transaction price of a contract if variable consideration exists the company determines the best
estimate of the variable consideration using either the expected value or the most likely amount and includes in the
transaction price an amount that does not exceed the portion for which it is highly probable that a significant reversal in
the cumulative revenue recognized will not occur when the uncertainty associated is resolved. If a contract contains a
significant financing component the company determines the transaction price based on the amount that the customer
would pay in cash if payment were made at the time the customer obtains control of the goods. The difference
between this transaction price and the contract consideration is amortized over the contract period using the effective
interest method. For contracts where the interval between the transfer of control and the customer's payment is one
year or less the company does not consider the financing component.A performance obligation is satisfied over time if one of the following conditions is met; otherwise it is satisfied at
a point in time:
* The customer obtains and consumes the economic benefits brought by the Company's performance while the
Company is performing the contract;
* The customer can control the goods in progress during the Company's performance;
* The goods produced during the Company's performance have no alternative use and the Company has the
right to payment for performance completed to date throughout the contract period.For performance obligations within a certain period the company recognized revenue in accordance with the
performance progress during that period of time except where the performance progress cannot be reasonably
recognized. The company determines the progress of performance in providing services using the input method (or
output method). Where the progress of performance cannot be reasonably determined if the costs incurred by the
Company are expected to be compensated revenue shall be recognized according to the amount of costs incurred
until the progress of performance can be reasonably determined.For performance obligations performed at a certain point in time the company recognized revenue when the
customer acquired the control over the relevant goods. When determining whether the customer has acquired control
over the goods or services the company will consider the following indications:
* The company has a current collection right in respect of the goods or services that is the customer has a
current payment obligation in respect of the goods;
* The company has transferred the legal ownership of the goods to the customer that is the customer has the
legal ownership of the goods;
* The company has transferred the physical possession of the goods to the customer that is the customer has
physically taken possession of the goods;
* The company has transferred the main risks and rewards of the ownership of the goods to the customer that
is the customer has accepted the main risks and rewards of the ownership of the goods;
* The customer has accepted the goods.Sales return terms
For sales with return terms the company recognizes revenue based on the consideration to which it is entitled
for transferring goods to the customer when the customer obtains control of the relevant goods and recognizes
estimated liabilities for the amount expected to be refunded due to sales returns; Meanwhile the company recognizes
an asset (i.e. asset for recoverable returned goods) measured at the carrying amount of the expected returned goods
at the time of transfer less the estimated costs to recover the goods (including impairment of returned goods). The
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cost of goods sold is recognized as the net amount after deducting the aforementioned asset cost from the carrying
amount of the transferred goods at the time of transfer. At each balance sheet date the company reassesses the
expected future sales returns and remeasures the aforementioned assets and liabilities.Quality assurance obligations
According to contract terms and legal provisions the company provides quality assurance for sold goods and
constructed projects. For warranty-type quality assurances that ensure the sold goods meet established standards the
Company accounts for them in accordance with Accounting Standard for Business Enterprises No. 13 – Contingencies.For service-type quality assurances that provide a separate service beyond ensuring the sold goods meet established
standards the Company treats them as a distinct performance obligation. A portion of the transaction price is allocated
to the service-type quality assurance in proportion to the relative standalone selling prices of the goods and the
service-type quality assurance and revenue is recognized when the customer obtains control of the service. When
evaluating whether quality assurance provides a separate service beyond ensuring that the sold goods meet
established standards the company considers factors such as whether the quality assurance is a legal requirement
the warranty period and the nature of the company's commitment to perform tasks.Principal and agent
Whether the company is the principal responsible person or agent in a transaction is determined by whether the
company has control over the goods or services before the transfer to the customer. If the company is able to control
the goods or services before the transfer of the goods or services to the customer the company is the main
responsible person and the revenue is recognized on the basis of the total consideration received or receivable.Otherwise the company acts as an agent and recognizes revenue based on the expected commission or fee that it is
entitled to receive which is determined as the net amount of the total consideration received or receivable minus the
amount payable to other relevant parties or in accordance with a pre-determined commission amount or percentage.Customer consideration payable
If a contract includes customer consideration payable unless the consideration is for obtaining other clearly
distinguishable goods or services for the customer the company deducts the payable consideration from the
transaction price and reduces current revenue at the later of recognizing related revenue or paying (or committing to
pay) customer consideration.Unexercised contractual rights by customers
When the company receives advance payments from customers for goods or services it first recognizes the
amount as a liability which is then converted to revenue upon fulfillment of related performance obligations. If the
advance payment received by the company is non-refundable and the customer may waive all or part of their
contractual rights the company expects to be entitled to the amount related to the waived rights such amount is
recognized as revenue proportionally based on the pattern of the customer exercising their rights; Otherwise the
company only converts the related balance of the above-mentioned liability to revenue when the likelihood of the
customer requesting fulfillment of remaining performance obligations is extremely low.Contract modification
When there is a modification of the construction contract between the company and the customer:
* If the modification adds distinct construction services and contract price and the new contract price reflects
the standalone selling price of the new construction services the company accounts for the modification as a separate
contract;
* If the modification does not fall under the above situation * and the construction services transferred and not
transferred can be clearly distinguished on the modification date the company treats it as a termination of the original
contract while merging the unfulfilled part of the original contract with the modified part into a new contract for
accounting purposes;
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* If the modification does not fall under the above situation * and the construction services transferred and not
transferred cannot be clearly distinguished on the modification date the company treats the modified part as part of
the original contract for accounting purposes adjusting the current revenue on the modification date for the impact on
previously recognized revenue.Different revenue recognition and measurement methods involved in different business models adopted by the same
type of business
(2) Specific methods
The specific methods of revenue recognition of the company are as follows:
Watch sales business
The Company's watch sales business is a performance obligation performed at a certain point in time.A. Online sales
Revenue is recognized when the products are delivered signed for by the customer and payment has been
received by the platform.B. Offline sales
Revenue is recognized when the product is delivered to the customer and accepted by the customer the price
has been received or the right to receive the payment has been obtained and the relevant economic benefits are likely
to flow in.C. Commissioned sales
Under the commissioned sales model the Company recognizes revenue when it receives the sales list from the
commissioned seller and confirms that the control over the goods has been transferred to the purchaser.D. Consignment-in
Under the consignment-in model when the Company delivers the external consignment products to the
customer and confirms that the control of the goods has been transferred to the buyer the revenue is recognized by
net method.Precision manufacturing business
The Company's precision manufacturing and sales business fulfills the performance obligations at a point in time.Domestic sales revenue is recognized when the company delivers the product to the contractually agreed delivery
location the products are accepted by the customer payment has been received or the right to receive payment has
been obtained and the related economic benefits are likely to flow in. Export sales revenue is recognized when the
company has declared the products for export according to the contract obtained the Bill of Lading received the
payment or obtained the right to receive payment and the related economic benefits are likely to flow in.Property leasing business
For details of specific accounting policies please refer to Note V.41 Accounting treatment of the Company as a
lessor.
38. Contract costs
Contract costs include contract performance costs and contract acquisition costs.Costs incurred by the Company for the performance of a contract are recognized as contract performance costs
and recorded as an asset when the following conditions are met:
* The costs are directly related to a current or expected contract including direct labor direct materials
manufacturing overhead (or similar costs) costs explicitly borne by the customer and other costs incurred solely due
to the contract.* Where such cost increases the resources of the Company for fulfilling its performance obligations in the future.
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* Where such cost is expected to be recovered.If the incremental cost incurred by COOEC for obtaining the contract is expected to be recovered the contract
acquisition cost is recognized as an asset.Assets related to the contract costs are amortized on the same basis as the recognition of the revenue of the
goods or services related to the asset; however if the amortization period of the contract acquisition costs is less than
one year the Company will include such costs in the current profit or loss when incurred.If the carrying amount of the asset related to contract costs exceeds the difference between the following two
items the Company will make an impairment provision for the excess and recognize it as an asset impairment loss
further considering whether to accrue estimated liabilities related to loss contracts:
* Where the remaining consideration is expected to be obtained by the transfer of goods or services related to
the asset;
* Where the costs are estimated to occur for the transfer of the relevant goods or services.If a subsequent reversal of the aforementioned asset impairment provision occurs the carrying amount of the
asset after reversal shall not exceed the carrying amount of the asset on the reversal date assuming no impairment
provision had been recognized.Contract performance costs recognized as assets are amortized over a period not exceeding one year or one
normal operating cycle at the initial recognition and presented under "Inventory". If the amortization period at the initial
recognition exceeds one year or one normal operating cycle they are presented under "Other non-current assets".Contract acquisition costs recognized as assets with an amortization period of no more than one year or one
normal operating cycle at the initial recognition are presented under "Other current assets". If the amortization period
at the initial recognition exceeds one year or one normal operating cycle they are presented under "Other non-current
assets".
39. Government subsidies
(1) Recognition of government subsidies
Government grants cannot be recognized unless they simultaneously satisfy the following conditions:
* The company is able to meet the conditions attached to the government grants;
* The company is able to receive the government grants.
(2) Measurement of government grants
Government grants in the form of monetary assets are measured at the amount received or receivable. Non-
monetary government grants are measured at fair value; If fair value cannot be reliably determined they are measured
at the nominal amount of RMB1.
(3) Accounting treatment of government grants
* Government grants related to assets
Government grants obtained by the company for the acquisition construction or formation of long-term assets
are divided as asset-related government grants. Asset-related government grants recognized as deferred income are
systematically recognized in profits and losses over the useful life of the relevant asset using a reasonable and
systematic method. Government grants measured at a nominal amount are directly included in the current profits and
losses. When assets are sold transferred scrapped or damaged before the end of their useful life the remaining
balance of related deferred income is transferred to the profit or loss of the current period for asset disposal.* Government grants related to income
Government grants other than those related to assets are classified as income-related government grants.Income-related government grants are accounted for as follows depending on the circumstances:
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Those intended to compensate the company for future costs and expenses or losses are recognized as deferred
income and are included in the profit or loss of the period when the related costs or losses are recognized;
Those intended to compensate the company for already incurred costs and expenses or losses are directly
included in the current profit or loss.For government grants that include both asset-related and income-related parts the different parts are
accounted for separately; If those parts are indistinguishable they are classified as income-related government grants
in entirety.Government grants related to the company's routine activities are recognized as other income in accordance
with the substance of the business transaction. Government grants not related to the Company's routine activities are
recognized as non-operating income and expenses.* Interest subsidies on policy-based preferential loans
When the finance department appropriates the discounted interest to the loan bank then the loan bank provides
the loans at the policy-based preferential interest rate to the Company the loan amount actually received is taken as
the book-entry value and relevant loan expenses are calculated based on the principal of the loan and the policy-
based preferential interest rate.Where the finance department directly appropriates the discount funds to the Company the Company will use
the corresponding interest discount to offset related borrowing costs.* Government grants return
When previously recognized government grants need to be returned if they were initially deducted from the
carrying amount of related assets the asset carrying amount shall be adjusted; If there is a balance of related deferred
income the balance of deferred income is reduced and the excess is included in the current profits and losses; For
other situations they are recognized directly in the current profit or loss.
40. Deferred tax assets and deferred tax liabilities
The company typically uses the balance sheet liability method to recognize and measure the impact of taxable
temporary differences or deductible temporary differences on income tax as deferred tax liabilities or deferred tax
assets based on the temporary differences between the carrying amount and tax base of assets and liabilities on the
balance sheet date. The company does not discount deferred tax assets and deferred tax liabilities.
(1) Recognition of deferred tax assets
The impact of deductible temporary differences deductible losses and tax credits that can be carried forward to
future years on income tax is calculated at the tax rate expected to apply during the reversal period and recognized as
deferred tax assets limited to the extent that the company is likely to generate future taxable income to offset the
deductible temporary differences deductible losses and tax credits.For deductible temporary differences arising from the initial recognition of assets or liabilities in transactions or
events with the following characteristics their impact on income tax is not recognized as deferred tax assets:
A. The transaction is not a business combination;
B. The transaction affects neither the accounting profit nor the taxable income (or deductible loss).For deductible temporary differences related to investments made by the company in subsidiaries associates
and joint ventures their impact on income tax is recognized as deferred tax assets (only) if the following two conditions
are met:
A. The temporary differences are likely to reverse in the foreseeable future;
B. It is likely that future taxable income will be available to offset the deductible temporary differences;
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On the balance sheet date if there is conclusive evidence that sufficient taxable income is likely to be generated
in future periods to offset deductible temporary differences previously unrecognized deferred tax assets are
recognized.On the balance sheet date the Company reviews the book value of deferred tax assets. If it is unlikely to obtain
sufficient taxable income taxes to offset the benefit of the deferred tax assets the book value of the deferred tax
assets shall be written down. When it is likely to earn sufficient taxable income the write-down amount should be
reversed.
(2) Recognition of deferred tax liabilities
For all taxable temporary differences of the company their impact on income tax is measured at the income tax
rate expected to apply in the period of reversal and is recognized as deferred tax liabilities except in the following
cases:
* The impact of taxable temporary differences arising from the following transactions or events on income tax is
not recognized as deferred tax liabilities:
A. The initial recognition of goodwill;
B. Initial recognition of assets or liabilities in transactions with the following characteristics: The transaction is not
a business combination and does not affect accounting profit or taxable income or deductible loss at the time of
occurrence.* The impact of taxable temporary differences related to investments made by the company in subsidiaries joint
ventures and associates on income tax is generally recognized as deferred tax liabilities except when both of the
following conditions are met:
A. The company can control the timing of the reversal of the temporary difference;
B. The temporary difference is unlikely to reverse in the foreseeable future.
(3) Recognition of deferred tax liabilities or assets related to specific transactions or events
* Deferred tax liabilities or assets related to business combinations
For taxable temporary differences or deductible temporary differences arising from business combinations not
under common control while recognizing deferred tax liabilities or assets the relevant deferred tax expenses (or
income) shall generally adjust the goodwill recognized in the business combination.* Items directly included in owner's equity
Current income tax and deferred income tax related to transactions or events directly included in owner's equity
are included in owner's equity. Transactions or events where the impact of temporary differences on income tax is
recognized in owner's equity include: other comprehensive income arising from changes in the fair value of other debt
investments etc.; adjustments to opening retained earnings through retrospective application of accounting policy
changes or retrospective restatement of differences from prior period (material) accounting error corrections; and initial
recognition of hybrid financial instruments containing both liability and equity components where they are recognized
in owner's equity etc.* Losses eligible for offset and tax credits
A. Losses eligible for offset and tax credits arising from the company's own operations
Deductible losses refer to losses calculated and determined according to tax laws that are allowed to offset
against taxable income in future years. Unutilized losses (deductible losses) and tax credits that can be carried forward
to future years according to tax laws are treated as deductible temporary differences. When it is highly probable that
sufficient taxable income will be obtained in future periods where losses eligible for offset or tax credits can be utilized
deferred tax assets are recognized to the extent of the probable taxable income while reducing the income tax
expense in the current income statement.B. Unutilized losses of the merged entity that can be offset due to business combinations
89Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
In a business combination if the company acquires deductible temporary differences of the acquiree that do not
meet the conditions for recognizing deferred tax assets on the acquisition date they are not recognized. Within 12
months after the acquisition date if new or further information indicates that the relevant circumstances on the
acquisition date already existed and the economic benefits from the acquiree's deductible temporary differences on the
acquisition date are expected to be realized the related deferred tax assets are recognized while reducing goodwill. If
goodwill is insufficient to offset the difference is recognized as current profit or loss; Except for the above situations
deferred tax assets related to business combinations are recognized in the current profit or loss.* Temporary differences arising from consolidation elimination
When the company prepares the consolidated financial statements if temporary differences arise between the
book values of assets and liabilities in the consolidated balance sheet and their tax bases in the respective tax entities
due to the elimination of unrealized internal transaction profits and losses deferred tax assets or deferred tax liabilities
shall be recognized in the consolidated balance sheet with a corresponding adjustment to income tax expense in the
consolidated income statement except for deferred taxes related to transactions or events directly recognized in
owner's equity and business combinations.* Equity-settled share-based payment
If tax laws allow pre-tax deductions for expenses related to share-based payments during the period when costs
and expenses are recognized according to accounting standards the company estimates the amount deductible
before tax based on information obtained at the end of the accounting period to determine its tax base and resulting
temporary differences. Deferred tax is recognized if the recognition conditions are met. If the estimated amount
deductible before tax in future periods exceeds the costs and expenses related to share-based payments recognized
according to accounting standards the tax impact of the excess should be directly recognized in owner's equity.
(4) Basis for presentation of deferred tax assets and deferred tax liabilities as net amount
Deferred tax assets and liabilities are presented by the Company as a net amount when the following conditions
are met simultaneously:
* The Company has the legal right to settle the current tax assets and current tax liabilities with net amount;
* Deferred tax assets and deferred tax liabilities are related to the income tax which are imposed on the same
taxpayer by the same tax collection authority or on different taxpayers but in each important future period in
connection with the reverse of deferred tax assets and deferred tax liabilities the involved taxpayer intends to balance
tax assets and liabilities for this period with net settlement at the time of obtaining assets and discharging liabilities
deferred tax assets and deferred tax liabilities shall be presented based on the net amount after offset.
41. Leasing
(1) Accounting treatment method of leasing as a lessee
1) Accounting treatment method for the company as a lessee
On the lease commencement date the company classifies leases with a term of no more than 12 months and
without purchase options as short-term leases; Leases that are of low value are classified as low-value asset leases
when the individual leased asset is new. If the Company sublets or anticipates subletting the leased assets the
original lease is not recognized as a low-value asset lease.For all short-term leases and low-value asset leases the company recognizes lease payments in the cost of
related assets or current profit or loss on a straight-line basis over the lease term.Except for the short-term leases and low-value asset leases subject to simplified treatment mentioned above the
company recognizes right-of-use assets and lease liabilities on the lease commencement date.* Right-of-use assets
A right-of-use asset refers to the lessee's right to use the leased asset during the lease term.
90Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
At the commencement date of the lease the right-of-use asset is initially measured at cost. The cost includes:
* The initial measurement amount of the lease liability;
* The lease payment made on or before the lease commencement date or the relevant amount after deducting
the lease incentive already enjoyed if any;
· Initial direct costs incurred by the lessee;
·Costs expected to be incurred by the lessee for dismantling and removing leased assets restoring the site where
the leased assets are located or restoring the leased assets to the state agreed upon in the lease terms. The
company recognizes and measures these costs according to the recognition criteria and measurement methods
for estimated liabilities as detailed in Note V 34. The aforementioned costs if incurred for producing inventory
will be included in inventory costs.Depreciation of the right-of-use assets is calculated using the straight-line method over the useful life. For leased
assets where ownership is reasonably certain to be obtained at the end of the lease term the depreciation rate is
determined based on the category of the right-of-use assets and the estimated net residual value rate over the
expected remaining useful life of the leased assets; For leased assets where ownership is not reasonably certain to be
obtained at the end of the lease term the depreciation rate is determined based on the category of the right-of-use
assets over the shorter of the lease term or the remaining useful life of the leased assets.* Lease liabilities
Lease liabilities shall be initially measured at the present value of the lease payments not yet paid at the
commencement date of the lease. Lease payments include the following five items:
Fixed payment and substantial fixed payment and the relevant amount after deducting the lease incentive if any;
Variable lease payments depending on index or ratio;
Exercise price of the purchased option provided that the lessee reasonably determines that the option will be
exercised;
The amount to be paid for the exercise of the lease termination options provided that the lease term reflects that
the lessee will exercise the options to terminate the lease;
Payments expected to be made based on the guaranteed residual value provided by the lessee.When calculating the present value of lease payments the interest rate implicit in lease is used as the discount
rate. If the interest rate implicit in lease cannot be determined the company's incremental borrowing rate is used as
the discount rate. The difference between lease payments and their present value is treated as unrecognized financing
expenses recognized as interest expenses at the discount rate for determining the present value of lease payments
during each period of the lease term and included in the current profit or loss. Variable lease payments that are not
included in the lease liabilities are included in current profit or loss when incurred.After the commencement date of the lease if there are changes in the substantially fixed payments expected
amounts payable under residual value guarantees indices or rates used to determine lease payments or the
assessment or actual exercise of options to purchase renew or terminate the lease the company remeasures the
lease liability using the present value of the revised lease payments and correspondingly adjusts the carrying amount
of the right-of-use asset.
2) Accounting treatment of lease modifications
* Lease modification as a separate lease
If there is a lease modification and it meets the following conditions the company will treat it as a separate lease:
A. The lease modification expands the lease scope by adding the right to use one or more leased assets; B. The
increased consideration is equivalent to the individual price of the expanded part adjusted according to the contract.* Lease modification not as a separate lease
A. The company as the lessee
91Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
On the effective date of the lease modification the company re-determines the lease term and discounts the
modified lease payments using the revised discount rate to re-measure the lease liability. When calculating the present
value of modified lease payments the interest rate implicit in lease of the remaining lease term is used as the discount
rate; If the interest rate implicit in lease of the remaining lease term cannot be determined the incremental borrowing
rate on the effective date of the lease modification is used as the discount rate.For the impact of the above lease liability adjustments accounting treatment is distinguished as follows:
· If a lease change results in a reduction in the scope of the lease or a shortening of the lease term the book
value of the right-of-use asset is reduced and the gain or loss related to the partial or complete termination of the lease
is recognized in current profit or loss;
·Other lease modifications adjusting the carrying amount of the right-of-use asset accordingly.
3) Sale and leaseback
The company evaluates and determines whether the asset transfer in a sale and leaseback transaction is a sale
according to Note V 37.The company as the seller (lessee)
If the asset transfer in a sale and leaseback transaction does not qualify as a sale the company continues to
recognize the transferred asset and recognizes a financial liability equal to the transfer income accounting for this
financial liability according to Note V 11. For asset transfers that qualify as sales the company measures the right-of-
use asset formed by the sale-and-leaseback based on the portion of the original asset's carrying amount related to the
right-to-use obtained from the leaseback and recognizes any gain or loss related to the rights transferred to the lessor.
(2) Accounting treatment method of leasing as a lessor
1) Accounting treatment method for the company as a lessor
At the lease commencement date the company classifies leases that substantially transfer all risks and rewards
related to ownership of the leased asset as finance leases; others are operating leases.* Operating lease
During each period of the lease term the company recognizes lease receipts as rental income on a straight-line
basis capitalizes initial direct costs and allocates them on the same basis as rental income recognition recognizing
them in profit or loss for the period. Variable lease payments obtained by the Company related to operating leases that
are not included in lease receipts are recognized in the current profit or loss when they occur.* Finance Lease
At the lease commencement date the company recognizes finance lease receivables at the net investment in the
lease (the sum of the unguaranteed residual value and the present value of the lease receipts not yet received at the
lease commencement date discounted at the interest rate implicit in lease) and derecognizes the finance lease asset.During each period of the lease term the company calculates and recognizes interest income using the interest rate
implicit in lease.The variable lease payments obtained by the Company that are not included in the measurement of net lease
investment are included in the current profit and loss when they actually occur.
2) Accounting treatment of lease modifications
* Lease modification as a separate lease
If a lease changes and meets all the following conditions the Company will account for the lease change as a
separate lease:
A. The lease change expands the scope of the lease by adding one or more rights to use the leased assets; B.The increased consideration is equivalent to the individual price of the expanded part adjusted according to the
contract.
92Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
* Lease modification not as a separate lease
B. The Company as the lessor
If a change in an operating lease occurs the Company accounts for it as a new lease from the effective date of
the change and the amount of lease receipts received in advance or receivable in connection with the lease prior to
the change is considered as the amount received under the new lease.If a change in a finance lease is not accounted for as a separate lease the company will handle the changed
lease under the following circumstances: If the lease change takes effect on the lease commencement date and the
lease is classified as an operating lease the company will account for it as a new lease from the effective date of the
lease change and use the net investment in the lease before the effective date of the lease change as the carrying
amount of the leased asset; If the lease change becomes effective on the lease commencement date and the lease is
classified as a finance lease the Company accounts for the lease in accordance with the regulations on modification
or renegotiation of contracts.
3) Sale and leaseback
The company as the buyer (lessor)
If the asset transfer in a sale and leaseback transaction does not qualify as a sale the company does not
recognize the transferred asset but recognizes a financial asset equal to the transfer income and accounts for this
financial asset according to Note V 11. If the asset transfer qualifies as a sale the company accounts for the asset
purchase according to other applicable enterprise accounting standards and accounts for the asset lease.
42. Other significant accounting policies and accounting estimates
Not applicable
43. Changes in significant accounting policies and estimates
(1) Changes in significant accounting policies
Not applicable
(2) Changes in significant accounting estimates
Not applicable
(3) Adjustment of items related to the financial statements at the beginning of the year when the new
accounting standards are implemented for the first time since 2025
Not applicable
44. Others
Not applicable
93Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
VI. Taxation
1. Main taxes and tax rates
Tax type Tax basis Tax rate
Calculate output tax at 5% 6% 9%
Value added tax (VAT) Taxable income 13% of sales and pay after deducting
input tax as per regulations
Consumption tax Taxable price of high-end watchsales income and sales quantity 20%
Urban maintenance and construction
tax Turnover tax payable 5% 7%
Enterprise income tax Taxable income See the table below for details
Property taxes Tax basis: 70% or 80% of the originalvalue of the house property 1.2% 12%
Notes to disclosure of enterprises with different enterprise income tax rates
Name of taxpayer Income tax rate
FIYTA Precision Technology Co. Ltd. 25%
Shenzhen Harmony World Watch Centre Co. Ltd. (* ) 25%
FIYTA Sales Co. Ltd. (* ) 25%
Shenzhen FIYTA Precision Technology Co. Ltd. (* ) 15%
Shenzhen FIYTA STD Co. Ltd. (* ) 15%
Shenzhen Harmony World Watch Centre Co. Ltd. (* ) 20%
Shenzhen Xunhang Precision Technology Co. Ltd. 25%
Emile Chouriet Horologe (Shenzhen) Co. Ltd. 25%
Liaoning Hengdarui Commerce and Trade Co. Ltd. 25%
Temporal (Shenzhen) Co. Ltd. 25%
Shenzhen Harmony E-commerce Co. Ltd. (* ) 20%
FIYTA (HONG KONG) LIMITED (* ) 16.5%
Montres Chouriet SA (* ) 30%
Note * : According to the relevant provisions of the "Interim Measures for the Administration of Enterprise Income Tax
Collection for Enterprises with Trans-regional Operations and Consolidated Tax Payments" issued by the State
Administration of Taxation the headquarters and its subordinate branches of such companies implement a
consolidated tax payment method for enterprise income tax. This method involves "unified calculation hierarchical
management local prepayment consolidated settlement and fiscal transfer of accounts." 50% of the prepayment is
shared among branches and 50% is shared by the head office;
Note * : These companies enjoy the "tax rate reduction and exemption for high-tech enterprises that need key support
from the state";
Note * : the Company's registered location is Hong Kong and the local profits tax in Hong Kong is applicable and the
applicable tax rate for this year is 16.50%;
Note * : the Company is registered in Switzerland. According to the applicable tax rate in registration location the
comprehensive tax rate for this year is 30%;
Notes * : these companies are small low-profit enterprises and are subject to enterprise income tax at a rate of 20%.
2. Tax preference
According to the provisions of the Enterprise Income Tax Law of the People's Republic of China high-tech
enterprises that need key support from the state shall be subject to enterprise income tax at a reduced rate of 15%.The subsidiary of the company Shenzhen FIYTA Precision Technology Co. Ltd. was recognized as a high-tech
94Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
enterprise in 2024 with certificate number GR202444200965 valid for three years and enjoys a 15% enterprise
income tax rate during the validity period. The subsidiary of the company Shenzhen FIYTA Technology Development
Co. Ltd. was recognized as a high-tech enterprise in 2022 with certificate number GR202244204678 valid for three
years and enjoys a 15% enterprise income tax rate during the validity period.According to the "Announcement on Preferential Income Tax Policies for Small and Micro Enterprises and
Individual Businesses" (CS [2023] No. 6) issued by the Ministry of Finance and the State Administration of Taxation
small and micro-profit enterprises include only 25% of their taxable income and pay enterprise income tax at a rate of
20%.
According to the "Notice on Extending the Loss Carry Forward Period for High-Tech Enterprises and
Technology-Based Small and Medium-Sized Enterprises" (CS [2018] No. 76) issued by the Ministry of Finance and the
State Administration of Taxation starting from January 1 2018 losses incurred in the five fiscal years prior to
obtaining high-tech enterprise qualification that have not yet been offset are allowed to be carried forward to
subsequent years for offsetting with the maximum carry forward period extended from 5 years to 10 years.According to the "Announcement on Further Improving the Policy of Pre-tax Additional Deduction of R&D
Expenses" (CS [2023] No. 7) issued by the Ministry of Finance and the State Administration of Taxation starting from
January 1 2023 enterprises' actual R&D expenses incurred in conducting R&D activities which are not converted into
intangible assets and are included in the current profit and loss can be additionally deducted at 100% of the actual
amount incurred on top of the actual deduction as per regulations; Where intangible assets are formed they shall be
amortized before tax at 200% of the cost of intangible assets as of January 1 2023.Since 2019 Hong Kong implemented a two-tiered profits tax regime whereby the profits tax rate for the first
HKD2000000 of profits earned by Hong Kong companies is reduced to 8.25% and the remaining profits are taxed at
the standard rate of 16.5%.
3. Others
Not applicable
VII. Notes to consolidated financial statements items
1. Monetary funds
Unit: yuan
Item Balance at the end of the period Beginning balance
Cash on hand 13115.08 76344.01
Bank deposit 19791498.38 18205968.96
Other monetary funds 4008217.17 2055640.10
Deposit in finance companies 515494103.34 498616224.42
Total 539306933.97 518954177.49
Including: total amount
deposited abroad 499487.91 6150258.49
4. Other explanations
Note 1: The deposits in finance companies were mainly the deposits in AVIC Finance Co. Ltd.Note 2: As of June 30 2025 the company had no pledged frozen or potentially recoverable funds.Details of the funds placed overseas with restrictions on repatriation are as follows:
95Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Item Balance at the end of the period Beginning balance
Funds placed overseas with restrictions on fund
repatriation 499487.91 6150258.49
2. Trading financial assets
Not applicable
3. Derivative financial assets
Not applicable
4. Notes receivable
(1) Classified presentation of notes receivable
Unit: yuan
Item Balance at the end of the period Beginning balance
Bank acceptance note 989123.16 9184912.30
Commercial acceptance note 12901833.63 20426688.30
Total 13890956.79 29611600.60
(2). Disclosure under the methods of provision for bad debts by category
Unit: yuan
Balance at the end of the period Beginning balance
Book balance Provision for baddebts Book balance
Provision for bad
Type debtsBook Book
Drawing value Drawing value
Amount Ratio Amount percent Amount Ratio Amount percent
ages ages
Inclu
ding:
Notes
receiva
ble with
provisio
n for 14289 100.00 399025 13890 30686 100.00 10750 29611
bad 982.57 % .78 2.79% 956.79 689.46 % 88.86 3.50% 600.60
debts
by
combin
ation
Inclu
ding:
Comme
rcial
accepta 13300 93.08% 399025 3.00% 12901 21501859.41 .78 833.63 777.16 70.07%
1075020426
nce 88.86
5.00%688.30
draft
96Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
combin
ation
Bank
accepta
nce bill 989123 6.92% 989123 91849.16 .16 12.30 29.93%
91849
combin 12.30
ation
Total 14289 100.00 399025 2.79% 13890 30686 100.00 10750 29611982.57 % .78 956.79 689.46 % 88.86 3.50% 600.60
Name of provision with provision for bad debts by combination: commercial acceptance bill combination
Unit: yuan
Balance at the end of the period
Name
Book balance Provision for bad debts Drawing percentages
Commercial acceptance
draft combination 13300859.41 399025.78 3.00%
Total 13300859.41 399025.78
Description of the basis for determining the combination: receivables of the same aging have similar credit risk
characteristics.Name of provision with provision for bad debts by combination: bank acceptance bill combination
Unit: yuan
Balance at the end of the period
Name
Book balance Provision for bad debts Drawing percentages
Bank acceptance bill
combination 989123.16
Total 989123.16
Description of the basis for determining the combination: The drawer has a high credit rating and has no bill default in
history so the risk of credit loss is extremely low and also has a strong ability to fulfill the obligation to pay the cash
flow of the contract in a short period of time.If the provision for bad debts of notes receivable is made according to the general expected credit loss model:
Not applicable
(3) Status of bad debt provision recovery or reversal for the period
Provision for bad debts in the current period:
Unit: yuan
Change in this period
Type Beginning
Balance at the
balance end of theProvision Recovery orreversal Write-off Others period
Notes
receivable
with provision
for bad debts
by individual
Notes
receivable
with provision
for bad debts
by
97Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
combination
Including:
commercial
acceptance 1075088.86 676063.08 399025.78
bill
combination
Bank
acceptance
bill
combination
Total 1075088.86 676063.08 399025.78
Significant amounts of bad debt recovery or reversal in the current period:
Not applicable
(4) Notes receivable pledged by the Company at the end of the period
Not applicable
(5) Receivables notes or discounted at period-end not yet due on the Company's balance
sheet date
Unit: yuan
Item Termination confirmation amount atperiod-end Unconfirmed amount at period-end
Bank acceptance note 6490722.31 0.00
Total 6490722.31 0.00
(6). Situation of notes receivable actually written off in the current period
Not applicable
5. Accounts receivable
1. Disclosure by aging
Unit: yuan
Aging Book balance as at the end of the Book balance as at the beginning ofyear the year
Within 1 year (including 1 year) 300381958.80 271349349.06
1-2 years 7545096.05 764175.79
2-3 years 841064.19 1410843.36
Over 3 years 18893207.66 20138406.23
3-4 years 1183000.38 2958803.32
4-5 years 1434207.12 17179602.91
Over 5 years 16276000.16
Total 327661326.70 293662774.44
98Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(2). Disclosure under the methods of provision for bad debts by category
Unit: yuan
Balance at the end of the period Beginning balance
Book balance Provision for baddebts Book balance
Provision for bad
Type debtsBook Book
Drawing value Drawing value
Amount Ratio Amount percent Amount Ratio Amount percent
ages ages
Account
s
receiva
ble with
provisio
n for 22527 21482 10448 25816523.01 6.88% 673.17 95.36% 49.84 016.35 8.79%
24222
124.3193.83%
15938
bad 92.04
debts
by
individu
al
Inclu
ding:
Account
s
receiva
ble with
provisio
n for 305133803.69 93.12%
106263.48%294507267846481.20322.49758.0991.21%
92878
15.703.47%
258558
bad 942.39
debts
by
combin
ation
Inclu
ding:
Combin
ation of
receiva
bles 305133 93.12% 10626 294507 267846 92878 258558
from 803.69 481.20
3.48%322.49758.0991.21%15.703.47%942.39
custom
ers
Total 327661 100.00 32109 295552 293662 100.00 33509 260152326.70 % 154.37 9.80% 172.33 774.44 % 940.01 11.41% 834.43
Category name of provision for bad debts by individual: accounts receivable from customers
Unit: yuan
Beginning balance Balance at the end of the period
Name
Book balance Provision for
Drawing
bad debts Book balance
Provision for
bad debts percentag
Reason for
es provision
Receivables
from 25816016.35 24222124.31 22527523.01 21482673.17 95.36%
Existence of
disputes poor
99Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
customers operation of
customers
etc.Total 25816016.35 24222124.31 22527523.01 21482673.17
Category name of provision for bad debts by combination: combination of accounts receivable from customers
Unit: yuan
Balance at the end of the period
Name
Book balance Provision for bad debts Drawing percentages
Combination of receivables
from customers 305133803.69 10626481.20 3.48%
Total 305133803.69 10626481.20
Description of the basis for determining the combination: receivables of the same aging have similar credit risk
characteristics.If the provision for bad debts of accounts receivable is made according to the general expected credit loss model:
Not applicable
(3) Status of bad debt provision recovery or reversal for the period
Provision for bad debts in the current period:
Unit: yuan
Change in this period
Beginning Balance at theType balance end of theProvision Recovery or Write-reversal off Others period
Accounts
receivable
with provision
for expected 24222124.31 2739451.14 21482673.17
credit losses
by individual
Accounts
receivable
with provision
for expected 9287815.70 1462497.53 123832.03 10626481.20
credit losses
by
combination
Total 33509940.01 1462497.53 2863283.17 32109154.37
Significant amounts of bad debt recovery or reversal in the current period:
Not applicable
(4). Situation of accounts receivable actually written off in the current period
Not applicable
(5) Accounts receivable and contractual assets collected from the debtors which rank the first
five at the end of period
Unit: yuan
100Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Ending balance
Proportion in the of provision for
Ending balance of Ending Ending balances of
total ending bad debts of
balance of accounts balance of accountsEntity name accounts contract receivable and accounts receivable andreceivable assets contract assets receivable and provision forcontractual impairment of
assets contractual
assets
Summary of
accounts
receivable which
ranks the first 71318011.88 71318011.88 21.77% 3565900.59
five at the end of
period
Total 71318011.88 71318011.88 21.77% 3565900.59
6. Contract assets
Not applicable
7. Receivables financing
Not applicable
8. Other receivables
Unit: yuan
Item Balance at the end of the period Beginning balance
Other receivables 56382345.03 56982351.27
Total 56382345.03 56982351.27
(1) Interest receivable
1) Classification of interest receivable
Not applicable
2) Important overdue interest
Not applicable
3). Disclosure under the methods of provision for bad debts by category
Not applicable
4). Status of bad debt provision recovery or reversal for the period
Not applicable
101Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
5) Situation of interest receivable actually written off in the current period
Not applicable
(2) Dividends receivable
1) Classification of dividends receivable
Not applicable
2) Important dividends receivable with aging over 1 year
Not applicable
3). Disclosure under the methods of provision for bad debts by category
Not applicable
4). Status of bad debt provision recovery or reversal for the period
Not applicable
5) Situation of dividends receivable actually written off in the current period
Not applicable
(3) Other receivables
1) Classification of other receivables by nature
Unit: yuan
Nature of payment Book balance as at the end of the Book balance as at the beginning ofyear the year
Employee reserve 3060132.82 1282327.49
Margin and deposits 52144234.33 52384967.00
Others 5371617.85 7654517.91
Total 60575985.00 61321812.40
2) Disclosure by aging
Unit: yuan
Aging Book balance as at the end of the Book balance as at the beginning ofyear the year
Within 1 year (including 1 year) 58460481.17 59521049.33
1-2 years 703757.40 302069.34
2-3 years 411274.63 219738.83
Over 3 years 1000471.80 1278954.90
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3-4 years 68631.90 119250.00
4-5 years 350764.90 1159704.90
Over 5 years 581075.00 0.00
Total 60575985.00 61321812.40
3). Disclosure under the methods of provision for bad debts by category
Unit: yuan
Balance at the end of the period Beginning balance
Book balance Provision for bad Provision for bad
Type debts
Book balance debts
Book Book
Drawing value Drawing value
Amount Ratio Amount percent Amount Ratio Amount percent
ages ages
Provisio
n for
bad
debts 13995 2.31% 13995 100.00 15349accrued 96.83 96.83 % 87.77 2.50%
14672
92.3095.59%
67695.
47
on an
individu
al basis
Including:
Provisio
n for
bad
debts 59176 97.69% 27940 4.72% 56382 59786 97.50% 28721 4.80% 56914
made 388.17 43.14 345.03 824.63 68.83 655.80
by
portfolio
Including:
Combin
ation of
margin
and 51444 84.92% 25920 5.04% 48852 51515 84.01% 26298 5.10% 48885
deposit 078.98 42.70 036.28 791.06 14.29 976.77
receiva
bles
Combin
ation of
employ
ee 30601 5.05% 30601 12823 12823
reserve 32.82 32.82 27.49
2.09%27.49
receiva
ble
Combin
ation of
other 46721 7.71% 202000 4.32% 44701 69887 11.40% 242354 3.47% 67463
financin 76.37 .44 75.93 06.08 .54 51.54
gs
Total 60575 100.00 41936 6.92% 56382 61321 100.00 43394 56982985.00 % 39.97 345.03 812.40 % 61.13 7.08% 351.27
Number of categories with provision for bad debts by individual: 1
103Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Category name of provision for bad debts by individual: other accounts receivable
Unit: yuan
Beginning balance Balance at the end of the period
Name
Book balance Provision for Book balance Provision for Drawing Reason forbad debts bad debts percentages provision
Other
receivables 1534987.77 1467292.30 1399596.83 1399596.83 100.00%
There is a
dispute
Total 1534987.77 1467292.30 1399596.83 1399596.83
Number of categories with provision for bad debts by combination: 3
Category name of provision for bad debts by combination: combination of margin and deposit receivable
Unit: yuan
Balance at the end of the period
Name
Book balance Provision for bad debts Drawing percentages
Combination of margin and
deposit receivable 51444078.98 2592042.70 5.04%
Total 51444078.98 2592042.70
Description of the basis for determining the combination: payments of the same nature have similar credit risk
characteristics.Category name of provision for bad debts by combination: combination of employee reserve receivable
Unit: yuan
Balance at the end of the period
Name
Book balance Provision for bad debts Drawing percentages
Combination of employee
reserve receivable 3060132.82 0.00%
Total 3060132.82
Description of the basis for determining the combination: payments of the same nature have similar credit risk
characteristics.Category name of provision for bad debts by combination: other accounts receivable
Unit: yuan
Balance at the end of the period
Name
Book balance Provision for bad debts Drawing percentages
Combination of other
financings 4672176.37 202000.44 4.32%
Total 4672176.37 202000.44
Description of the basis for determining the combination: payments of the same nature have similar credit risk
characteristics.Provision for bad debts made according to the general expected credit loss model:
Unit: yuan
Phase I Phase II Phase III
Expected credit loss
Provision for bad Expected credit Expected credit lossthroughout the throughout thedebts Totallosses over the next duration (credit
12 months duration (no creditimpairment) impairment hasoccurred)
Balance as of Jan. 1
20252872168.831467292.304339461.13
Balance as of
January 1 2025 in
104Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
the current period
- Transfer to phase II
- Transfer to phase
III
- Reversal to phase II
- Reversal to phase I
Provision in this
period -78125.69 -78125.69
Reversal in this
period 67695.47 67695.47
Charge-off in this
period
Write-off in this
period
Other changes
Balance as of June
3020252794043.141399596.834193639.97
The basis for the division of each stage and the ratio of provisions for bad debts
The phase I is the bad debt provision for other receivables within one year. The phase II is the bad debt provision for
other receivables over one year that have not been individually assessed. The phase III is the bad debt provision for
individually assessed accounts receivable.Changes in book balance with significant amount of loss provision in the current period
Not applicable
4). Status of bad debt provision recovery or reversal for the period
Provision for bad debts in the current period:
Unit: yuan
Change in this period
Type Beginning
Balance at the
balance Recovery or Resale or end of theProvision reversal write-off Others period
Provision for
bad debts
accrued on an 1467292.30 67695.47 1399596.83
individual
basis
Provision for
bad debts
made by 2872168.83 7811.34 85937.03 2794043.14
portfolio
Total 4339461.13 7811.34 153632.50 4193639.97
Reversal or recovery of significant amount of provision for bad debts in the current period:
Not applicable
5) Situation of other accounts receivable actually written off in the current period
Not applicable
105Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
6). Other receivables collected from the debtors which rank the first five at the end of period
Unit: yuan
Balance at Proportion in the Ending
Entity name Nature of amount the end of the Aging total ending balance balance of
period of other receivables provision forbad debts
Summary of other
accounts receivable
which rank the first Margin andsecurity deposit 7067684.50 Within 1 year 11.67% 353384.23five at the end of
period
Total 7067684.50 11.67% 353384.23
7) Presented in other receivables due to centralized management of funds
Not applicable
9. Prepayments
(1) Prepayments are presented by aging
Unit: yuan
Balance at the end of the period Beginning balance
Aging
Amount Ratio Amount Ratio
Within 1 year 24636188.41 100.00% 3858053.60 100.00%
1-2 years 0.00 0.00% 0.00 0.00%
Total 24636188.41 3858053.60
Reasons for not timely settlement of prepayments with aging over 1 year and significant amount:
Not applicable
(2). Top five of advances to suppliers in terms of the ending balance presented by advance
receivers
The total amount of the top five prepayments by closing balance collected from debtors in the current period is
RMB20938242.27 accounting for 84.99% of the total closing balance of prepayments.
10. Inventories
Whether the Company needs to comply with the disclosure requirements of the real estate industry
No
(1) Classification of inventory
Unit: yuan
Balance at the end of the period Beginning balance
Item
Book balance Provision for Book value Book balance Provision for Book value
impairment of impairment of
106Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
inventory or inventory or
contract contract
performance performance
costs costs
Raw material 122973588.4 2063620.17 120909968.2 114983902.6 2082708.59 112901194.02 5 8 9
Work in
progress 4775222.06 0.00 4775222.06 8125895.42 0.00 8125895.42
Merchandise 1788574578 1719048863 1934763585 1863459880
inventory .14 69525714.99 .15 .61 71303705.38 .23
Total 1916323388 71589335.16 1844734053 2057873383 73386413.97 1984486969.62 .46 .71 .74
(2) Data resources recognized as inventory
Not applicable
(3) Provision for impairment of inventory or contract performance costs
Unit: yuan
Increase in this period Decrease in this period
Beginning Balance at theItem balance Provision Others Reversal or
end of the
write-off Others period
Raw material 2082708.59 -19088.42 2063620.17
Merchandise
inventory 71303705.38 -1761478.97 16511.42 69525714.99
Total 73386413.97 -1780567.39 16511.42 71589335.16
Provision for inventory depreciation by combination
Not applicable
(4) Notes to the ending balance of inventories including the capitalization amount of
borrowing costs
Not applicable
(5) Notes to the amortization amount of contract performance costs in the current period
Not applicable
11. Assets held for sale
Not applicable
12. Non-current assets due within one year
Not applicable
107Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
13. Other current assets
Unit: yuan
Item Balance at the end of the period Beginning balance
Reclassification of VAT debit balance 39188347.43 45766634.09
Certificate of deposit 36112276.78 29408855.46
Prepaid taxes 4643004.35 4402072.04
Others 14562992.18 18430363.63
Total 94506620.74 98007925.22
14. Debt investments
Not applicable
15. Other debt investments
Not applicable
16. Investment in other equity instruments
Not applicable
17. Long-term receivables
(1) Long-term receivables
Not applicable
(2). Disclosure under the methods of provision for bad debts by category
Not applicable
(3) Status of bad debt provision recovery or reversal for the period
Not applicable
(4). Situation of long-term receivables actually written off in the current period
Not applicable
18. Long-term equity investments
Unit: yuan
Begin Begin Increase/decrease in this period Endin Balan
Invest ning ning Additi Reduc Invest Other Other Cash Provis g ce of
ee balan balan onal ed ment compr chang divide ion for Other balan provisi
ce ce of invest invest incom ehens es in nds or impair s ce on for
(book provisi ment ment e or ive equity profits ment (book impair
108Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
value) on for loss incom declar accru value) ment
impair recog e ed to ed as at
ment nized adjust be the
under ments distrib end of
equity uted the
metho period
d
1. Joint ventures
2. Associated enterprise
Shang
hai
Watch 5090
Indust 7036. 4945
5140
45.14 1581.ry 84 98
Co.Ltd.Sub- 5090 5140
total 7036.
4945
8445.14
1581.
98
5090
Total 7036. 4945
5140
45.141581.8498
19. Other non-current financial assets
Not applicable
20. Investment properties
(1) Investment property measured at cost
Unit: yuan
Item Houses andbuildings Land use rights
(XVIII) Construction
in progress Total
I. Total original book
value
1. Beginning
balance 544545292.87 544545292.87
2. Increase in
this period
(1)
Outsourcing
(2)
Transfers from
inventories\fixed
assets\construction
in progress
(3) Increase
from business
combinations
3. Decrease in
109Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
this period
(1) Disposal
(2) Other
transfers out
(3) Transfer to fixed
assets
4. Ending
balance 544545292.87 544545292.87
II. Accumulated
depreciation and
amortization
1. Beginning
balance 243542928.46 243542928.46
2. Increase in
this period 6828575.64 6828575.64
(1)
Provision or 6828575.64 6828575.64
amortization
3. Decrease in
this period
(1) Disposal
(2) Other
transfers out
(3) Transfer to fixed
assets
4. Ending
balance 250371504.10 250371504.10
III. Provision for
impairment
1. Beginning
balance
2. Increase in
this period
(1)
Provision
3. Decrease in
this period
(1) Disposal
(2) Other
transfers out
4. Ending
balance
IV. Book value
1. Book value as
at the end of the 294173788.77 294173788.77
period
2. Book value as
at the beginning of 301002364.41 301002364.41
the period
110Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
The recoverable amount is determined by the net amount of the fair value less the disposal expenses
Not applicable
The recoverable amount is determined at the present value of the expected future cash flows
Not applicable
Reasons for the difference between the aforementioned information and the information used in the impairment test of
previous years or external information
Not applicable
Reasons for the difference between the information used in the company's impairment test in previous years and the
actual situation in the current year
Not applicable
Other explanations:
Not applicable
(2) Investment property measured at fair value
Not applicable
(3) Convert to investment property and measure at fair value
Not applicable
(4) Investment property without certificate of title
Not applicable
21. Fixed assets
Unit: yuan
Item Balance at the end of the period Beginning balance
(XVII) Fixed assets 368564629.53 377568144.41
Liquidation of fixed assets 0.00 0.00
Total 368564629.53 377568144.41
(1). Status of fixed assets
Unit: yuan
Item Buildings and Machinery Transportation Electronic Otherconstructions equipment facilities equipment equipment Total
I. Total
original book
value:
1. Beginning 515518210.6 131660591.2
balance 4 8 12031744.02 51743615.12 43815743.01
754769904.0
7
2. Increase in
this period 5514245.14 3825624.50 6095.44 1916863.53 523924.87 11786753.48
(1) Purchase 66867.32 1138890.89 6095.44 1830806.40 276328.94 3318988.98
(2) Transfer
111Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
from
construction in
progress
(3) Increase
from business
combinations
(4). Exchange
differences
arising from
foreign 5447377.82 2686733.61 86057.13 247595.93 8467764.50
currency
transactions
3. Decrease in
this period 2439312.87 388408.33 532247.31 3359968.51
(1) Disposal
or scrapping 2439312.87 388408.33 532247.31 3359968.51
(2). Exchange
differences
arising from
foreign
currency
transactions
4. Ending 521032455.7 135486215.7
balance 8 8 9598526.59 53272070.32 43807420.57
763196689.0
4
II.Accumulated
depreciation
1. Beginning 195960430.0
balance 3 90553556.06 11195032.63 40399800.29 39092940.65
377201759.6
6
2. Increase in
this period 11669166.07 6224393.32 94097.19 1697560.00 779455.87 20464672.45
(1) Provision 7637459.51 3630014.18 94097.19 1617743.19 531993.33 13511307.40
(2) Reversal
of investment
property
(3). Exchange
differences
arising from
foreign 4031706.56 2594379.14 79816.81 247462.54 6953365.05
currency
transactions
3. Decrease in
this period 2311382.45 311889.19 411100.96 3034372.60
(1) Disposal
or scrapping 2311382.45 311889.19 411100.96 3034372.60
(2). Exchange
differences
arising from
foreign
currency
transactions
4. Ending 207629596.1 394632059.5
balance 0 96777949.38 8977747.37 41785471.10 39461295.56 1
112Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
III. Provision
for impairment
1. Beginning
balance
2. Increase in
this period
(1) Provision
3. Decrease in
this period
(1) Disposal
or scrapping
4. Ending
balance
IV. Book value
1. Book value
as at the end 313402859.68 38708266.40 620779.22 11486599.22 4346125.01
368564629.5
of the period 3
2. Book value
as at the 319557780.6
beginning of 1 41107035.22 836711.39 11343814.83 4722802.36
377568144.4
the period
(2) Temporarily idle fixed assets
Not applicable
(3) Fixed assets leased out through operating leases
Not applicable
(4) Fixed assets without certificates of title
Unit: yuan
Item Book value Reason for failure to properly handlethe certificates of title
Buildings and constructions 166558.86 Defects in property rights
(5) Impairment test of fixed assets
Not applicable
(6) Liquidation of fixed assets
Not applicable
22. Construction in progress
Not applicable
113Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
23. Productive biological assets
(1) Productive biological assets measured at cost
Not applicable
(2) Impairment test of productive biological assets measured at cost
Not applicable
(3) Productive biological assets measured at fair value
Not applicable
24. Oil and gas assets
Not applicable
25. Right-of-use assets
(1) Right-of-use assets situation
Unit: yuan
Item Houses and buildings Total
I. Total original book value
1. Beginning balance 216731879.49 216731879.49
2. Increase in this period 37277373.47 37277373.47
(1) Lease 37277373.47 37277373.47
(2). Exchange differences arising
from foreign currency transactions
3. Decrease in this period 52340357.61 52340357.61
(1) The lease expires 52340357.61 52340357.61
4. Ending balance 201668895.35 201668895.35
II. Accumulated depreciation
1. Beginning balance 118293903.08 118293903.08
2. Increase in this period 49457474.41 49457474.41
(1) Provision 49457474.41 49457474.41
(2). Exchange differences arising
from foreign currency transactions
3. Decrease in this period 48807159.56 48807159.56
(1) Disposal
(2) The lease expires 48807159.56 48807159.56
4. Ending balance 118944217.93 118944217.93
III. Provision for impairment
1. Beginning balance
2. Increase in this period
114Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(1) Provision
3. Decrease in this period
(1) Disposal
4. Ending balance
IV. Book value
1. Book value as at the end of
the period 82724677.42 82724677.42
2. Book value as at the
beginning of the period 98437976.41 98437976.41
(2) Impairment test of right-of-use assets
Not applicable
26. Intangible assets
(1) Intangible assets
Unit: yuan
Item Land userights Patent right
Non-patented Software Trademark
technology system use right Total
I. Total
original book
value
1. Beginning
balance 34933822.40 38764216.56 16605353.16 90303392.12
2. Increase in
this period 692372.40 0.48 692372.88
(1) Purchase 661646.60 661646.60
(2) Internal
research and
development
(3) Increase
from business
combinations
(4). Exchange
differences
arising from
foreign 30725.80 0.48 30726.28
currency
transactions
3. Decrease in
this period
(1) Disposal
4. Ending
balance 34933822.40 39456588.96 16605353.64 90995765.00
II.Accumulated
accumulation
115Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
1. Beginning
balance 17983028.58 30442053.39 10310382.99 58735464.96
2. Increase in
this period 366776.65 1063585.52 10816.11 1441178.28
(1) Provision 366776.65 1063585.52 10816.11 1441178.28
3. Decrease in
this period
(1) Disposal
4. Ending
balance 18349805.23 31505638.91 10321199.10 60176643.24
III. Provision
for impairment
1. Beginning
balance
2. Increase in
this period
(1) Provision
3. Decrease in
this period
(1) Disposal
4. Ending
balance
IV. Book value
1. Book value
as at the end 16584017.17 7950950.05 6284154.54 30819121.76
of the period
2. Book value
as at the
beginning of 16950793.82 8322163.17 6294970.17 31567927.16
the period
The proportion of intangible assets formed by the Company's internal research and development at the end of the
current period to the balance of intangible assets is 0.00%
(2) Data resources recognized as intangible assets
Not applicable
(3) Land use right without certificate of title
Not applicable
(4) Impairment test of intangible assets
Not applicable
116Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
27. Goodwill
(1) Original book value of goodwill
Not applicable
(2) Provision for impairment of goodwill
Not applicable
(3) Information on the asset group or combination of asset groups where the goodwill is
located
Not applicable
(4) Specific determination method of recoverable amount
Not applicable
(5) Completion of performance commitments and corresponding impairment of goodwill
Not applicable
28. Long-term deferred expenses
Unit: yuan
Item Beginning Increase in this
Amount
balance period amortized in this Other decreases
Balance at the
period end of the period
Counter
production fee 24352436.13 5256347.67 12877120.88 16731662.92
Renovation costs 83140826.23 16799168.58 22686922.63 77253072.18
Others 2712060.93 1871219.96 1231279.29 3352001.60
Total 110205323.29 23926736.21 36795322.80 97336736.70
29. Deferred tax assets/deferred tax liabilities
(1) Deferred income tax assets without offset
Unit: yuan
Balance at the end of the period Beginning balance
Item Deductible temporary Deferred tax assets Deductible temporarydifferences differences Deferred tax assets
Provision for asset
impairment 106470945.35 24611309.99 108844748.49 25235985.22
Unrealized profits
from internal 53348258.24 13027061.27 65606873.01 16083716.18
transactions
Deductible loss 179761339.63 38998163.64 150789689.25 35315775.40
117Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Equity incentive 7958442.71 1839229.47
Lease liability 116734106.36 29183526.60 98553370.15 24638342.52
Others 8564008.59 2113179.68 11064124.31 2766031.08
Total 464878658.17 107933241.18 442817247.92 105879079.87
(2) Deferred income tax liabilities without offset
Unit: yuan
Balance at the end of the period Beginning balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
One-time pre-tax
deduction of fixed 25760688.68 3864103.30 27444135.67 4116620.35
assets
(XIX) Right-of-use
assets 115263799.19 28815949.79 98388890.53 24597222.63
Total 141024487.87 32680053.09 125833026.20 28713842.98
(3) Deferred tax assets or liabilities presented by net amount after offset
Unit: yuan
Deduction amount of Ending balance of Deduction amount of Initial balance of
Item deferred tax assets deferred tax assets
deferred tax assets
and liabilities at the or liabilities after and liabilities from
deferred tax assets
or liabilities after
end of the period write-off the beginning of theperiod write-off
Deferred tax assets 30545929.19 77387311.98 23723301.56 82155778.31
Deferred tax
liabilities 30545929.19 2134123.90 23723301.56 4990541.42
(4) Details of unrecognized deferred tax assets
Unit: yuan
Item Balance at the end of the period Beginning balance
Provision for asset impairment 1395023.21 3466155.48
Deductible loss 23590796.58 42305096.05
Total 24985819.79 45771251.53
(5) The deductible losses of the unrecognized deferred tax assets will become due in the
following years:
Unit: yuan
Year Ending amount Beginning amount Remark
202518449678.50
202623590796.5823855417.55
Total 23590796.58 42305096.05
118Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
30. Other non-current assets
Unit: yuan
Balance at the end of the period Beginning balance
Item
Book balance Provisions forimpairment Book value Book balance
Provisions for
impairment Book value
Prepayment
for long-term 7269265.12 7269265.12 3792253.84 3792253.84
assets
Total 7269265.12 7269265.12 3792253.84 3792253.84
31. Assets with restricted ownership or usage rights
Not applicable
32. Short-term loans
(1) Classification of short-term debts
Unit: yuan
Item Balance at the end of the period Beginning balance
Fiduciary loans 140000000.00 120000000.00
Bill discounting 3957187.86
Unexpired interest payable 84055.54 130566.65
Total 140084055.54 124087754.51
(2) Overdue and outstanding short-term debts
Not applicable
33. Trading financial liabilities
Not applicable
34. Derivative financial liabilities
Not applicable
35. Notes payable
Not applicable
36. Accounts payable
(1) Presentation of accounts payable
Unit: yuan
119Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Item Balance at the end of the period Beginning balance
Payable for goods 93881004.69 114881141.96
Payable for project 651779.61 651779.61
Total 94532784.30 115532921.57
(2). Significant payable aging over 1 year or overdue
Not applicable
37. Other payables
Unit: yuan
Item Balance at the end of the period Beginning balance
Dividends payable 0.00 2785293.14
(XXXI) Other payables 89287084.19 101853190.67
Total 89287084.19 104638483.81
(1) Interest payable
Not applicable
(2) Dividends payable
Unit: yuan
Item Balance at the end of the period Beginning balance
Ordinary share dividends 0.00 2785293.14
Total 0.00 2785293.14
Other explanations including significant dividends payable that have remained unpaid for more than one year shall
disclose the reasons for non-payment: Not applicable
(3) Other payables
1). Other payable listed by nature
Unit: yuan
Item Balance at the end of the period Beginning balance
Deposits and margin 30500994.96 31563500.48
Decoration fee 1396312.49 3978759.28
Restricted stock repurchase
obligations 12815556.81
Accrued expenses and others 57389776.74 53495374.10
Total 89287084.19 101853190.67
2) Other significant payable with aging over 1 year or overdue
Not applicable
120Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
38. Advance receipts
(1) Presentation of advances received
Unit: yuan
Item Balance at the end of the period Beginning balance
Advance rent 7813681.37 11783796.49
Total 7813681.37 11783796.49
(2) Significant advance receivable with aging over 1 year or overdue
Not applicable
39. Contract liabilities
Unit: yuan
Item Balance at the end of the period Beginning balance
Payment for goods 15914217.86 12605722.95
Total 15914217.86 12605722.95
Important contract liabilities with an aging of over 1 year
Not applicable
(2) Amount and reasons for significant changes in book value during the reporting period
Not applicable
40. Employee compensation
(1). Employee compensation breakdown
Unit: yuan
Item Beginning balance Increase in this Decrease in this Balance at the end ofperiod period the period
I. Short-term
compensation 79250553.06 236812550.02 260152723.98 55910379.10
II. Post-employment
benefits-defined 7969370.66 23452907.52 25662144.28 5760133.90
contribution plans
III. Dismissal welfare 5040229.42 3779913.64 8533248.16 286894.90
Total 92260153.14 264045371.18 294348116.42 61957407.90
(2). Short-term compensation breakdown
Unit: yuan
Item Beginning balance Increase in this Decrease in this Balance at the end ofperiod period the period
1. Wages bonus 78062428.74 210491489.07 233599166.82 54954750.99
allowance and
121Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
subsidy
2. Staff welfare 74715.46 4522176.40 4588829.98 8061.88
3. Social insurance
premium 240049.63 9786620.56 9766890.99 259779.20
Including: medical
insurance premiums 239971.31 8797419.67 8778481.40 258909.58
Work-related
injury insurance 78.32 587928.12 587136.82 869.62
premiums
Maternity
insurance premiums
Housing provident
funds 7289.00 8888573.00 8877741.40 18120.60
5. Labor Union fee
and staff education 866070.23 3123690.99 3320094.79 669666.43
expenses
Total 79250553.06 236812550.02 260152723.98 55910379.10
(3). Defined contribution plan breakdown
Unit: yuan
Item Beginning balance Increase in this Decrease in this Balance at the end ofperiod period the period
1. Basic endowment
insurance premiums 240419.91 21321463.27 21406745.62 155137.56
2. Unemployment
insurance premiums 384.04 831816.65 830411.45 1789.24
3. Enterprise annuity
payment 7728566.71 1299627.60 3424987.21 5603207.10
Total 7969370.66 23452907.52 25662144.28 5760133.90
41. Taxes payable
Unit: yuan
Item Balance at the end of the period Beginning balance
Value added tax (VAT) 29238621.52 33699458.80
Enterprise income tax 12359718.96 11535771.24
Individual income tax 938722.58 994923.84
Urban maintenance and construction
tax 334519.41 1359840.26
Education surcharge 238310.74 972536.24
Others 3620441.55 1252620.97
Total 46730334.76 49815151.35
42. Liabilities held for sale
Not applicable
122Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
43. Non-current liabilities due within one year
Unit: yuan
Item Balance at the end of the period Beginning balance
Lease liability maturing within one
year 57399333.79 63538231.06
Total 57399333.79 63538231.06
44. Other current liabilities
Unit: yuan
Item Balance at the end of the period Beginning balance
Output tax to be transferred 2429897.06 1529468.07
Total 2429897.06 1529468.07
45. Long-term loans
Not applicable
46. Bonds payable
(1) Bonds payable
Not applicable
(2) Increase/decrease in bonds payable (excluding preferred stock perpetual bonds and other
financial instruments divided into financial liabilities)
Not applicable
(3) Notes to convertible corporate bonds
Not applicable
(4) Description of other financial instruments divided into financial liabilities
Not applicable
47. Lease liabilities
Unit: yuan
Item Balance at the end of the period Beginning balance
Buildings and constructions 86297142.38 101263377.23
Unrecognized financing charges -2104028.66 -2659854.13
Lease liability maturing within one
year -57399333.79 -63538231.06
Total 26793779.93 35065292.04
123Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Other explanations:
Not applicable
48. Long-term payable
Not applicable
(1) Long-term payable listed by nature
Not applicable
(2) Special payable
Not applicable
49. Long-term employee compensation payable
(1) Table of long-term employee compensation payable
Not applicable
(2) Changes in defined benefit plans
Not applicable
50. Estimated liabilities
Not applicable
51. Deferred income
Not applicable
52. Other non-current liabilities
Not applicable
53. Capital stock
Unit: yuan
Increase/decrease in this change (+ -)
Beginning Capital Balance at
balance IPO Share conversion
the end of
donation of provident Others Sub-total the period
funds
Total 40576400 40576400
shares 7.00 7.00
124Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
54. Other equity instruments
(1) Basic information of preferred stock perpetual bonds and other financial instruments issued at the end of
the period
Not applicable
(2) Table of changes in preferred stock perpetual bonds and other financial instruments issued at the end of
the period
Not applicable
55. Capital reserve
Unit: yuan
Item Beginning balance Increase in this Decrease in this Balance at the end ofperiod period the period
Capital premium
(share premium) 912742221.49 8861512.48 921603733.97
Other capital reserves 23597282.11 9591764.14 14005517.97
Total 936339503.60 8861512.48 9591764.14 935609251.94
Other notes including the changes in the current period and the reasons for the changes:
1. Pursuant to the "Proposal on the Satisfaction of Restriction Release Conditions for the Third Restriction Release
Period of the 2018 A-Share Restricted Stock Incentive Plan (Phase II)" reviewed and approved by the Company's
Board of Directors and Shareholders' Meeting during the current year 2047420 A-shares of restricted stock that
meet the restriction release conditions were processed for restriction release. The capital reserve of RMB
8861512.48 corresponding to the restricted stock of the above incentive recipients was transferred from "other capital
surplus" to "share premium".
2. The difference between the amount of pre-tax deduction for income tax in the current year and the amount of
relevant costs and expenses recognized during the vesting period which arises from the discrepancy between the fair
value of restricted stock at the time of unlocking and the grant price at the time of grant results in an impact on income
tax. Accordingly "other capital surplus" is reduced by RMB 730251.66.
56. Treasury stock
Unit: yuan
Item Beginning balance Increase in this Decrease in this Balance at the end ofperiod period the period
Restricted share-
based payment 12815556.81 12815556.81 0.00
Total 12815556.81 12815556.81 0.00
Other notes including the changes in the current period and the reasons for the changes:
1. As stated in Note 55 1 of Note VII for the restricted shares that meet the unlocking conditions and do not
require repurchase the corresponding repurchase obligation is derecognized thereby reducing "restricted share-
based payment" by RMB 12815556.81.
125Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
57. Other comprehensive income
Unit: yuan
Amount in the current period
Less:
Less: the retained
amount income
included included
in other in other
Amount comprehe comprehe Attributabl
Beginning before nsive nsive Less:
Attributabl e to Balance at
Item balance income income in income in income
e to minority the end of
tax in the prior prior tax parent sharehold the period
current period and periods expenses company ers after
period transferre and after tax tax
d to transferre
current d to
profit or current
loss profit or
loss
I. Other
comprehe
nsive
income
that
cannot be
reclassifie
d into
profit or
loss
Including:
changes
in re-
measurem
ent of the
defined
benefit
plan
Other
comprehe
nsive
income
that
cannot be
transferre
d to profit
or loss
under the
equity
method
Chan
ges in fair
value of
other
equity
126Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
instrument
investmen
ts
Chan
ges in fair
value of
the
company's
credit risk
II. Other
comprehe
nsive
income to
be 1568679 9592491. 9592491. 2527928
reclassifie 4.62 09 09 5.71
d into
profit or
loss later
Including:
other
comprehe
nsive
income
that can
be carried
forward to
profit and
loss under
the equity
method
Chan
ges in fair
value of
other debt
investmen
ts
Amou
nt of
financial
assets
reclassifie
d into
other
comprehe
nsive
incomes
Provi
sion for
credit
impairmen
t of other
debt
investmen
ts
Cash 1568679 9592491. 9592491. 2527928
127Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
flow 4.62 09 09 5.71
hedge
reserves
Total of
other
comprehe 1568679 9592491. 9592491. 2527928
nsive 4.62 09 09 5.71
income
58. Special reserves
Unit: yuan
Item Beginning balance Increase in this Decrease in this Balance at the end ofperiod period the period
Work safety
expenses 4340162.76 223177.64 274388.33 4288952.07
Total 4340162.76 223177.64 274388.33 4288952.07
59. Surplus reserve
Unit: yuan
Item Beginning balance Increase in this Decrease in this Balance at the end ofperiod period the period
Statutory surplus
reserve 213025507.50 213025507.50
Discretionary surplus
reserve 61984894.00 61984894.00
Total 275010401.50 275010401.50
60. Undistributed profits
Unit: yuan
Item Current period Previous period
Retained earnings as at the end of
the previous period before the 1767517887.94 1709513385.76
adjustment
Total adjusted undistributed profit at
the beginning of the period (increase 0.00 0.00
+ decrease -)
Undistributed profits at the beginning
of the period after adjustment 1767517887.94 1709513385.76
Plus: Net profit attributable to owners
of the parent company in this period 82445500.03 220350184.99
Common stock dividends
payable 162305602.80 162345682.81
Undistributed profits as at the end of
the period 1687657785.17 1767517887.94
Details of undistributed profit at the beginning of the period after adjustment
1) Due to the retrospective adjustment of the Accounting Standards for Business Enterprises and its relevant new
128Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
provisions the retained profit at the beginning of the period was affected by RMB0.00.
2) Due to the change in accounting policies the retained profit at the beginning of the period was affected by RMB0.00.
3) Due to the correction of major accounting errors the retained profit at the beginning of the period was affected by
RMB0.00.
4) Due to the change in the scope of consolidation caused by the same control the retained profit at the beginning of
the period was affected by RMB0.00.
5) The total impact of other adjustments on the retained profit at the beginning of the period was RMB0.00.
61. Operating income and operating costs
Unit: yuan
Amount in the current period Amount in the previous period
Item
Revenue Cost Revenue Cost
Primary business 1777911239.83 1149101334.42 2070514213.15 1304312255.31
Other business 6220697.40 707277.15 5883698.17 170200.24
Total 1784131937.23 1149808611.57 2076397911.32 1304482455.55
Breakdown of operating income and operating cost:
Unit: yuan
Contract Divisional 1 Total
classification Operating revenue Operating costs Operating revenue Operating costs
Business type
Including:
Full service business
of luxury watches 1344501516.85 980624417.20 1344501516.85 980624417.20
Watch brand
business 315109112.17 97070191.43 315109112.17 97070191.43
Precision technology
business 60465539.30 54745355.92 60465539.30 54745355.92
Leasing business 57835071.51 16661369.87 57835071.51 16661369.87
Others 6220697.40 707277.15 6220697.40 707277.15
Classified by
business area
Including:
South China 806381444.29 506821115.78 806381444.29 506821115.78
Northwest China 248784340.56 159847879.10 248784340.56 159847879.10
North China 51669800.71 29754508.68 51669800.71 29754508.68
East China 228872072.10 153763476.61 228872072.10 153763476.61
Northeast China 162388661.36 113628484.29 162388661.36 113628484.29
Southwest China 286035618.21 185993147.11 286035618.21 185993147.11
Total 1784131937.23 1149808611.57 1784131937.23 1149808611.57
Information related to performance obligations:
See Note V.37 for details.Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period the revenue corresponding to the performance obligations that have been
signed but not performed or not completed is RMB0.00.Information about variable consideration in the contract:
Not applicable
129Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Major contract change or major transaction price adjustment of parent company
Not applicable
62. Taxes and surcharges
Unit: yuan
Item Amount in the current period Amount in the previous period
Consumption tax 1206242.82 913936.41
Urban maintenance and construction
tax 5065292.07 3480924.40
Education surcharge 3560819.76 2468662.07
Property taxes 3761835.26 3689322.24
Land use taxes 193107.20 203766.80
Vehicle and vessel tax 1020.00 1020.00
Stamp tax 1137269.96 1095430.07
Others 587613.97 407395.56
Total 15513201.04 12260457.55
63. Administrative expenses
Unit: yuan
Item Amount in the current period Amount in the previous period
Employee salary 70190119.12 66869323.72
Depreciation and amortization 10093537.37 10112949.88
Traveling expenses 697547.75 1603647.72
Office costs 1218376.72 1670705.64
Intermediary employment fee 1543816.43 1961271.79
Water and electricity property and
rental fees 1554287.31 1784853.95
Business entertainment expenses 229638.66 456485.67
Automobile and transportation
expenses 431178.16 598205.06
Communication charges 106156.57 173259.63
Others 3906851.92 3983229.48
Total 89971510.01 89213932.54
64. Selling expenses
Unit: yuan
Item Amount in the current period Amount in the previous period
Employee salary 151438933.03 181510506.64
Shopping malls and rental expenses 64976038.21 72573677.88
Advertising exhibition and marketing
expenses 66944607.21 73779075.70
Depreciation and amortization 85895948.64 91305090.93
Packing expenses 3354092.79 4665459.60
Water and electricity and property
management fees 10758091.61 11430327.96
Transportation expenses 2155504.25 2742617.08
Office costs 2092204.90 2697327.59
130Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Traveling expenses 1727206.33 3648244.84
Business entertainment expenses 882474.30 2008292.89
Others 2582931.38 3424381.29
Total 392808032.65 449785002.40
65. Research and development expenses
Unit: yuan
Item Amount in the current period Amount in the previous period
Employee salary 25193556.07 19756648.13
Sample and material costs 427397.19 1603990.91
Depreciation and amortization 2484373.63 2382614.08
Technical cooperation fee 1292546.07 1469929.58
Others 3689998.37 2312815.63
Total 33087871.33 27525998.33
66. Financial expenses
Unit: yuan
Item Amount in the current period Amount in the previous period
Interest expenditures 2390395.42 5169603.47
Less: Capitalized interest
Less: interest income 1870950.85 2185535.51
Profit or loss on exchange -560384.92 944148.29
Handling fees and others 5681020.64 5694581.34
Total 5640080.29 9622797.59
4. Other explanations
Not applicable
67. Other income
Unit: yuan
Sources of other income Amount in the current period Amount in the previous period
Government grants 1509835.03 1414439.38
Individual income tax withholding
service fee 565713.33 511868.05
Additional deduction of input tax 871341.32 1177577.07
Total 2946889.68 3103884.50
68. Net exposure hedging income
Not applicable
69. Gains from changes in fair value
Not applicable
131Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
70. Investment income
Unit: yuan
Item Amount in the current period Amount in the previous period
Long-term equity investment income
calculated under the equity method 494545.14 89872.06
Interest from fixed deposits 247499.84 223962.11
Total 742044.98 313834.17
71. Credit impairment losses
Unit: yuan
Item Amount in the current period Amount in the previous period
Losses from bad debts in notes
receivable 676063.08 99659.19
Losses from bad debts of accounts
receivable 1433272.16 2486626.83
Bad debt loss of other receivables 118839.22 138392.41
Total 2228174.46 2724678.43
72. Asset impairment losses
Unit: yuan
Item Amount in the current period Amount in the previous period
1. Inventory depreciation loss and
contract performance cost 1780567.39 28336.82
impairment loss
2. Losses from impairment of long-
term equity investments
3. Losses from impairment of
investment properties
4. Losses from impairment of fixed
assets
5. Losses from impairment of project
materials
6. Losses from impairment of
construction in progress
7. Losses from impairment of
productive biological assets
8. Losses from impairment of oil and
gas assets
9. Losses from impairment of
intangible assets
10. Losses from impairment of
goodwill
11. Losses from impairment of
contract assets
12. Others
132Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Total 1780567.39 28336.82
73. Income from asset disposals
Unit: yuan
Source of income from assets
disposal Amount in the current period Amount in the previous period
Gains or losses from disposal of fixed
assets -136999.29 2871991.80
Gains or losses on disposal of right-
of-use assets -287408.03 34218.87
Total -424407.32 2906210.67
74. Non-operating income
Unit: yuan
Item Amount in the current Amount in the previous
Amount included in the
period period current non-recurring profitor loss
Payables not required to
be paid 208509.16 250659.03 208509.16
Compensation income 913547.80 1083368.57 913547.80
Others 82150.96 44111.25 82150.96
Total 1204207.92 1378138.85 1204207.92
75. Non-operating expenditure
Unit: yuan
Item Amount in the current Amount in the previous
Amount included in the
period period current non-recurring profitor loss
Losses from non-monetary
asset exchange
Donations made 243626.35
Fines and overdue fines 139702.96 1348.47 139702.96
Liquidated damages 1045.00 4075.11 1045.00
Others 78693.73 29783.42 78693.73
Total 219441.69 278833.35 219441.69
76. Income tax expense
(1) Table of income tax expense
Unit: yuan
Item Amount in the current period Amount in the previous period
Income tax expenses for the current
period 21933368.58 41957212.02
Deferred tax expenses 1181797.15 4587823.09
Total 23115165.73 46545035.11
133Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(2) Accounting profit and income tax expense adjustment process
Unit: yuan
Item Amount in the current period
Total profits 105560665.76
Income tax expenses calculated at the
statutory/applicable tax rate 26390166.44
Influence of different tax rates applicable to subsidiaries 1632457.77
Influence of adjustments to the income tax for the prior
years -1215613.43
Influence of non-taxable income -123636.29
Influence of nondeductible costs expenses and losses -117653.47
Additional deduction of research and development
expenses -3371169.00
(LVIII) Income tax expenses 23115165.73
77. Other comprehensive income
See Note VII.57 for details.
78. Cash flow statement items
(1) Cash related to operating activities
Cash received from other operating activities
Unit: yuan
Item Amount in the current period Amount in the previous period
Margin and security deposit 4721865.96 3891700.17
Government grants 1698194.84 1685999.41
Commodity promotion expenses 2732719.87 3815826.53
Interest income 1913911.99 2197067.47
Petty cash 843906.32 1656985.54
Others 8406114.61 9515423.83
Total 20316713.59 22763002.95
Cash paid for other operating activities
Unit: yuan
Item Amount in the current period Amount in the previous period
Margin and security deposit 5929267.55 4378182.27
Period expenses and others 145952265.33 181036440.45
Total 151881532.88 185414622.72
(2) Cash related to investing activities
Cash received from other investing activities
Unit: yuan
Item Amount in the current period Amount in the previous period
Recovery of fixed deposits 104282319.06 120049969.61
134Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Total 104282319.06 120049969.61
Cash received from significant investing activities
Not applicable
Cash paid for other investing activities
Unit: yuan
Item Amount in the current period Amount in the previous period
Purchase of fixed deposits 111168651.92 165092806.07
Total 111168651.92 165092806.07
Cash paid for important investing activities
Not applicable
(3) Cash related to financing activities
Cash received from other financing activities
Not applicable
Cash paid for other financing activities
Unit: yuan
Item Amount in the current period Amount in the previous period
Lease cash outflow 45795435.69 58174682.07
Payment for share repurchase 79409.91
Total 45795435.69 58254091.98
Notes of cash paid for other financing activities:
Not applicable
Changes in various liabilities arising from financing activities
Unit: yuan
Increase in this period Decrease in this period Balance at the
Item Beginningbalance Cash changes Non-cash Non-cash
end of the
changes Cash changes changes period
(XXV) Short-
term 124087754.5 140000000.0 776908.34 120823419.4 3957187.86 140084055.5
borrowings 1 0 5 4
Dividends 2785293.14 161746549.2 164531842.3payable 0 4
Non-current
liabilities
maturing 63538231.06 39656538.42 45795435.69 57399333.79
within one
year
Lease liability 35065292.04 31385026.31 39656538.42 26793779.93
Total 225476570.7 140000000.0 233565022.2 331150697.45 0 7 8 43613726.28
224277169.2
6
135Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(4) Notes to net presentation of cash flows
Not applicable
(5) Major activities and financial impacts that do not involve current cash receipts and
payments but affect the financial position of the enterprise or may affect the cash flows of the
enterprise in the future
Not applicable
79. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: yuan
Supplementary information Amount of the current period Prior period
1. Net profit adjusted to cash flows
from operating activities:
Net profit 82445500.03 147138482.34
Plus: provision for assets
impairment -4008741.85 -2753015.25
Depreciation of fixed assets
depletion of oil and gas assets
depreciation of productive biological 20339883.04 21248775.43
assets
Depreciation of right-of-use
asset 49457474.41 52808948.49
Amortization of intangible
assets 1441178.28 1821341.36
Amortization of long-term
deferred expenses 36795322.80 37505025.77
Losses from disposal of fixed
assets intangible assets and other 424407.32 -2906210.67
long-term assets ( "-" for gains)
Losses on write-off of fixed
assets ("-" for gains)
Losses from changes in fair
value ("-" for gains)
Financial expenses ("-" for
gains) 1830010.50 6113751.76
Investments losses ("-" for
gains) -742044.98 -313834.17
Decreases in deferred tax
assets (“-” for increases) 4768466.33 4333902.49
Increase in deferred tax
liabilities ("-" for decreases) -2856417.52 253920.60
Decreases in inventories ("-"
for increases) 141549995.09 -25957816.56
Decreases in operating -38310215.86 -29498881.56
136Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
receivables (“-” for increases)
Increases in operating
payables (“-” for decreases) -41644010.52 -73263593.51
Others
Net cash flows from operating
activities 251490807.07 136530796.52
2. Significant investing and financing
activities not involving in cash
receipts and payments:
Transfer of debts into capital
Convertible corporate bonds
maturing within 1 year
Fixed assets leased from financing
3. Net change in cash and cash
equivalents:
Ending balance of cash 539306933.97 404356009.13
Less: beginning balance of cash 518954177.49 504629153.71
Plus: ending balance of cash
equivalents
Less: beginning balance of cash
equivalents
Net increase of cash and cash
equivalents 20352756.48 -100273144.58
(2) Net cash paid for acquisition of subsidiaries in the current period
Not applicable
(3) Net cash received from disposal of subsidiaries in the current period
Not applicable
(4). Composition of cash and cash equivalents
Unit: yuan
Item Balance at the end of the period Beginning balance
I. Cash 539306933.97 518954177.49
Including: cash on hand 13115.08 76344.01
Unrestricted bank deposits 535285601.72 516822193.38
Other unrestricted monetary
funds 4008217.17 2055640.10
II. Cash equivalents
Including: Bond investment maturing
within three months
III. Ending balance of cash and cash
equivalents 539306933.97 518954177.49
Including: cash and cash equivalents 499487.91 6150258.49
137Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
with restricted use right by parent
company or subsidiaries of the Group
(5) The situation where the scope of use is limited but still belongs to the presentation of cash
and cash equivalents
Unit: yuan
Item Amount of the current Prior period Reasons for remainingperiod cash and cash equivalents
The account funds of the
company's subsidiary
FIYTA (HONG KONG)
LIMITED and sub-
Bank deposit 499487.91 1951883.15 subsidiary Montres
Chouriet SA are deposited
abroad and fund
repatriation is restricted
without affecting daily use.
(6) Cash not belonging to cash and cash equivalents
Not applicable
(7) Description of other major activities
Not applicable
80. Notes to items of the statement of changes in Owners' equity
Not applicable
81. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: yuan
Item Ending balance of foreign Exchange rate of
Balance converted into
currency conversion RMB at the end of theperiod
(VI) Monetary funds 10003762.73
Including: USD 364284.83 7.1586 2607769.38
EUR 229840.48 8.4024 1931211.65
HKD 5354566.43 0.91195 4883096.86
CHF 64832.63 8.9721 581684.84
Accounts receivable 5516572.06
Including: USD 610075.33 7.1586 4367285.26
EUR 8.4024
HKD 970883.25 0.91195 885396.98
138Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
CHF 29412.27 8.9721 263889.83
(XXXIV) Long-term
borrowings
Including: USD
EUR
HKD
(XXVII) Accounts payable 64055.68
Including: HKD 51113.37 0.91195 46612.84
CHF 1944.12 8.9721 17442.84
Other receivables 218416.12
Including: HKD 82090.60 0.91195 74862.52
CHF 16000.00 8.9721 143553.60
(XXXI) Other payables 840533.85
Including: USD 4933.82 7.1586 35319.24
HKD 444875.90 0.91195 405704.58
CHF 44528.04 8.9721 399510.03
(2) Description of overseas operating entities including for important overseas operating
entities the main overseas business place functional currency and selection basis shall be
disclosed and the reasons for changes in functional currency shall also be disclosed.For the main operating location and functional currency of important overseas operating entities see Note V 4.
82. Leasing
(1) The Company as the lessee
Variable lease payments not included in the measurement of lease liabilities
Current profit or loss and cash flow related to leasing
Item Amount for 2025 half-year
Short-term lease expenses recognized in current profit or loss using simplified treatment 628219.39
Low-value asset lease expenses recognized in current profit or loss using simplified treatment
(excluding short-term leases)
Interest expense on lease liability 1562847.08
Variable lease payments included in current profit or loss but not included in the measurement
of lease liabilities 36664817.82
Revenue from subletting right-of-use assets
Total cash outflows related to leases 81765658.22
Related profit or loss from sale and leaseback transactions
In the first half of 2025 the variable lease payments included in current profit or loss but not included in the
measurement of lease liabilities amounted to RMB36664817.82.Simplified treatment of short-term leases or leasing fees for low-value assets
Not applicable
Circumstances involving sale and leaseback transactions
Not applicable
139Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(2) The Company as the lessor
Operating lease as lessor
Unit: yuan
Including: income related to variable
Item Lease income lease payments not included in the
lease receipts
Lease income 57835071.51 0.00
Total 57835071.51 0.00
Financing lease as a lessor
Not applicable
Undiscounted lease receipts for each of the next five years
Not applicable
Reconciliation table of undiscounted lease receipts and net lease investment
Not applicable
(3) Recognize profit or loss on finance lease sales as a manufacturer or distributor
Not applicable
83. Data resources
Not applicable
84. Others
Not applicable
8. R&D expenditure
Unit: yuan
Item Amount in the current period Amount in the previous period
Employee salary 25193556.07 19756648.13
Sample and material costs 427397.19 1603990.91
Depreciation and amortization 2484373.63 2382614.08
Technical cooperation fee 1292546.07 1469929.58
Others 3689998.37 2312815.63
Total 33087871.33 27525998.33
Including: Expensed R&D
expenditures 33087871.33 27525998.33
Capitalized R&D expenditures 0.00 0.00
1. R&D projects eligible for capitalization
Not applicable
140Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
2. Important outsourcing projects under research
Not applicable
9. Changes in the scope of consolidation
1. Business combination not under common control
(1) Business combination not under common control occurred in the current period
Not applicable
(2) Combination costs and goodwill
Not applicable
(3) Identifiable assets and liabilities of the acquiree on the acquisition date
Not applicable
(4) Gains or losses arising from the re-measurement of equity held before the acquisition date at fair value
Whether there is a transaction that achieves the business combination step by step through multiple transactions and
obtains the control during the reporting period
No
（5） Relevant explanations for the inability to reasonably determine the acquisition consideration or the fair
value of identifiable assets and liabilities of the acquiree at the acquisition date or the end of the reporting
period of combination
Not applicable
（6） 4. Other explanations
Not applicable
2. Business combination under common control
(1) Business combination under common control occurred in the current period
Not applicable
(2) Combination cost
Not applicable
141Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(3) Book value of the combined party's assets and liabilities on the combination date
Not applicable
3. Reverse acquisition
Not applicable
4. Disposal of subsidiaries
Whether there were any transactions or events during the period in which control over the subsidiary is lost
No
Whether there are multiple transactions and step-by-step disposal of the investment in a subsidiary leading the loss of
the control right over the subsidiary in the current period
No
5. Changes in the scope of consolidation for other reasons
Not applicable
6、Others
Not applicable
10. Equity interests in other entities
1. Equity in subsidiaries
(1) Composition of the enterprise group
Unit: yuan
Name of Registered capital Main Registrati Business
Shareholding ratio Method of
subsidiaries premise on place nature Direct Indirect acquisition
Shenzhen
Harmony World 600000000.00 Shenzh Shenzhe Commerc
Establishme
Watch Centre Co. en n e 100.00% nt or
Ltd. investment
FIYTA Sales Co. Shenzh Shenzhe Commerc Establishme
Ltd. 450000000.00 en n e 100.00% nt orinvestment
Shenzhen FIYTA
Precision Shenzh Shenzhe Manufactu Establishme
Technology Co. 180000000.00 en n ring 99.44% 0.56% nt or
Ltd. investment
Shenzhen FIYTA 50000000.00 Shenzh Shenzhe Manufactu
Establishme
STD Co. Ltd. en n ring 100.00% nt orinvestment
Harmony World
Watch Centre 10000000.00 Sanya Sanya
Commerc 100.00% Establishmee nt or
142Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(Hainan) Co. Ltd. investment
Shenzhen
Xunhang Precision 10000000.00 Shenzh Shenzhe Manufactu
Establishme
Technology Co. en n ring 100.00% nt or
Ltd. investment
Emile Chouriet
Horologe Establishme
(Shenzhen) Co. 41355200.00
Shenzh Shenzhe Commerc
en n e 100.00% nt or
Ltd. investment
Liaoning Business
Hengdarui combination
Commerce and 51000000.00
Shenya Shenyan Commerc
ng g e 100.00% under
Trade Co. Ltd. commoncontrol
Temporal
(Shenzhen) Co. 5000000.00 Shenzh Shenzhe Commerc
Establishme
en n e 100.00% nt orLtd. investment
Shenzhen
Harmony E- Establishme
commerce Co. 10000000.00
Shenzh Shenzhe Commerc
en n e 100.00% nt or
Ltd. investment
FIYTA (HONG Establishme
KONG) LIMITED 137737520.00
Hong Hong Commerc
Kong Kong e 100.00% nt orinvestment
Business
Montres 97958426.10 Switzerl Switzerla Manufactu 0.00% 100.00
combination
Chouriet SA and nd ring % not undercommon
control
Description of the shareholding ratio in the subsidiary that is different from the voting rights ratio:
Not applicable
Basis for holding half or less of the voting rights but still controlling the investee and holding more than half of the
voting rights but not controlling the investee:
Not applicable
For important structured entities included in the scope of consolidation basis for control:
Not applicable
Basis for determining whether the company is an agent or a principal:
Not applicable
Other explanations:
Not applicable
(2) Significant non-wholly-owned subsidiaries
Not applicable
(3) Main financial information of significant non-wholly-owned subsidiaries
Not applicable
143Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(4) Major restrictions on the use of the assets of the enterprise group and the settlement of the debts of the
enterprise group
Not applicable
(5) Financial support or other support provided to structured entities included in the scope of consolidated
financial statements
Not applicable
2. Transactions of changes in the share of Owners' equity in subsidiaries and still control the
subsidiaries
(1) Description of changes in the share of Owners' equity in subsidiaries
Not applicable
(2) Impact of the transaction on minority equity and equity attributable to shareholders
Not applicable
3. Equity in joint ventures or associates
(1) Important joint ventures or associated enterprises
Shareholding ratio Accounting
Name of joint treatment of
venture or Main premise Registration Business investments inassociated place nature Direct Indirect joint ventures
enterprise or associated
enterprise
Shanghai
Watch
Industry Co. Shanghai Shanghai Commerce 25.00% Equity method
Ltd.Description of the different shareholding scales of joint ventures or associated enterprises from the voting scale:
Not applicable
Basis for holding less than 20% of voting rights but having significant influence or holding 20% or more of voting rights
but not having significant influence:
Not applicable
(2) Main financial information of important joint ventures
Not applicable
(3) Main financial information of important associated enterprise
Unit: yuan
144Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Ending balance/amount incurred in Beginning balance/amount incurred
the current period in the previous period
Current assets 215022502.18 209477074.16
Non-current assets 12801786.37 15193917.74
Total assets 227824288.55 224670991.90
Current liabilities 107900056.71 106724940.61
Non-current liabilities
Total liabilities 107900056.71 106724940.61
Minority equity
Equity attributable to shareholders of
the parent company 119924231.84 117946051.29
Share of net assets calculated by
shareholding scale 29981057.96 29486512.82
Adjustment matters 21420524.02 21420524.02
- Goodwill 21420524.02 21420524.02
- Unrealized profits from internal
transactions
- Others
Book value of equity investment in
associated enterprise 51401581.98 50907036.84
Fair value of equity investments in
associated enterprises at publicly
quoted prices
Operating revenue 53414261.52 58283918.10
Net profit 1978180.55 359488.26
Net profits from discontinued
operations
(LVIX) Other comprehensive income
Total comprehensive income 1978180.55 359488.26
Dividends received from associated
enterprise in the current year
(4) Summary financial information of insignificant joint ventures and associated enterprise
Not applicable
(5) Explanation on significant restrictions on the ability of joint ventures or associated
enterprises to transfer funds to the Company
Not applicable
(6) Excess losses incurred by joint ventures or associated enterprise
Not applicable
145Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(7) Unrecognized commitments related to investment in joint ventures
Not applicable
(8) Contingent liabilities related to investments in joint ventures or associated enterprise
Not applicable
4. Important joint operation
Not applicable
5. Equity in structured entities not included in the scope of consolidated financial statements
Not applicable
6. Others
Not applicable
11. Government subsidies
1. Government subsidies recognized as receivable at the end of the reporting period
Not applicable
2. Liability items involving government subsidies
Not applicable
3. Government subsidies included in the current period's profit and loss
Unit: yuan
Accounting item Amount in the current period Amount in the previous period
(L) Other income 1509835.03 1414439.38
12. Risks related to financial instruments
1. Various risks arising from financial instruments
The company's financial instrument-related risks arise from various financial assets and liabilities recognized
during operations including credit risk liquidity risk and market risk.The objectives and policies for managing various financial instrument-related risks are established by the company's
Management. The Operational Management is responsible for daily risk management through functional departments
(For example the company's credit management department reviews each credit sale transaction). The Company's
Internal Audit Department conducts daily supervision of the execution of risk management policies and procedures
and reports findings to the audit committee in a timely manner.
146Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
The overall objective of the company's risk management is to develop risk management policies that minimize
financial instrument-related risks without unduly affecting the company's competitiveness and resilience.
1. Credit risk
Credit risk is the risk that financial loss is incurred by one party to a financial instrument due to the other party's failure
to fulfill its obligations. The company's credit risk mainly arises from cash notes receivable accounts receivable and
receivables financing. The credit risk of these financial assets stems from counterparty default with the maximum
exposure equal to the carrying amount of these instruments.The company's cash is mainly deposited in commercial banks and other financial institutions which are considered to
have high creditworthiness and asset status posing low credit risk.For notes receivable accounts receivable receivables financing other receivables etc. the Company has set
relevant policies to control credit risk exposure. The COOEC based on the customers' financial positions the
possibility of obtaining guarantees from the third party credit records and other factors such as the current market
conditions evaluated the credit qualifications of customers and set credit term. The COOEC would monitor the
customers' credit records periodically; as for the customers with bad credit records the COOEC would adopt the
methods including requesting a payment in writing or shortening or canceling credit term so as to keep the COOEC's
overall credit risks within controllable scope.
(1) Judgment criteria for significant increase of credit risk
The company assesses whether the credit risk of relevant financial instruments has significantly increased since
initial recognition at each balance sheet date. In determining whether there has been a significant increase in credit
risk since initial recognition the company considers reasonable and supportable information that can be obtained
without undue cost or effort including qualitative and quantitative analysis based on the company's historical data
external credit risk ratings and forward-looking information. The company bases on individual financial instruments or
groups of financial instruments with similar credit risk characteristics to determine changes in the risk of default over
the expected life by comparing the risk of default at the balance sheet date with the risk at initial recognition.The company considers the credit risk of financial instruments to have significantly increased when one or more of the
following quantitative or qualitative criteria are met: Quantitative criteria mainly refer to the increase in the probability of
default over the remaining term at the reporting date compared to initial recognition by a certain percentage;
Qualitative criteria include significant adverse changes in the major debtor's operations or financial condition the list of
early-warning customers etc.
(2) Definition of assets with credit impairment
To determine whether credit impairment has occurred the company uses criteria consistent with internal credit risk
management objectives for relevant financial instruments considering both quantitative and qualitative indicators.When assessing whether a debtor has experienced credit impairment the company primarily considers the following
factors: significant financial difficulties of the issuer or debtor; The debtor has breached the contract such as defaulting
on interest or principal payments or being overdue; The creditor for economic or contractual considerations related to
the debtor's financial difficulties grants concessions to the debtor that would not be made under any other
circumstances; It is likely that the debtor will go bankrupt or undergo other financial restructuring; The disappearance
of an active market for the financial assets due to the issuer's or the debtor's financial difficulties; Acquiring or
originating financial assets at a significant discount which reflects the occurrence of credit losses.Credit impairment of financial assets may result from the combined effect of multiple events and may not necessarily
be caused by individually identifiable events.
(3) Parameters for measurement of expected credit losses
Based on whether there is a significant increase in credit risk and whether credit impairment has occurred the
company measures impairment provisions for different assets using 12-month or lifetime expected credit losses. Key
147Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
parameters for measuring expected credit losses include probability of default loss given default and exposure at
default. The company uses quantitative analysis of historical statistical data (such as counterparty ratings guarantee
methods and types of collateral and pledge repayment methods etc.) and forward-looking information to establish
models for probability of default loss given default and exposure at default.Relevant definitions are as follows:
Probability of default refers to the likelihood that the debtor will be unable to fulfill its payment obligations within the
next 12 months or over the entire remaining duration.Loss given default refers to the company's expected degree of loss on exposure to default risk. Loss given default
varies based on the type of counterparty method and priority of recourse and different collateral. Loss given default is
the percentage of exposure loss at the time of default calculated based on the next 12 months or the entire duration;
Exposure at default refers to the amount that should be repaid to the company in the event of default within the next
12 months or over the entire remaining duration. Forward-looking information is involved in assessing significant
increases in credit risk and calculating expected credit losses. The company analyzes historical data to identify key
economic indicators affecting credit risk and expected credit losses for each business type.The maximum credit risk exposure the company faces is the carrying amount of each financial asset on the balance
sheet. The Company has not provided any other guarantees that may expose the Company to credit risks.Accounts receivable from the top five customers account for 21.77% of the company's total accounts receivable
(comparison period: 21.01%).
2. Liquidity risk
Liquidity risk refers to a risk that an enterprise suffers funds shortage in performing the obligations of settlement in
cash or other financial assets. The company is responsible for coordinating the cash management of all its
subsidiaries including short-term investment of cash surpluses and raising loans to meet expected cash needs. The
company's policy is to regularly monitor short-term and long-term working capital needs as well as compliance with
the provisions of loan agreements so as to ensure the maintenance of sufficient cash reserves and marketable
securities that can be converted into cash at any time.As of June 30 2025 the maturity dates of the company's financial liabilities are as follows:
Unit: RMB'0000
June 30 2025
Item
Within 1 year 1-2 years 2-3 years Over 3 years
(XXV) Short-term borrowings 14008.41
(XXVII) Accounts payable 9453.28
(XXXI) Other payables 8928.71
Non-current liabilities maturing
within one year 5739.93
Lease liability 2131.33 535.56 12.49
Total 38130.33 2131.33 535.56 12.49
3. Market risk
(1) Foreign exchange risk
Except that the subsidiary established in Hong Kong holds assets with HKD as the settlement currency and the sub-
subsidiary established in Switzerland holds assets with CHF as the settlement currency other main business activities
of the Company are mainly settled with RMB. However the Company's recognized foreign currency assets and
148Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
liabilities and future foreign currency transactions (foreign currency assets liabilities and foreign currency transactions
are mainly denominated with HKD and CHF) still have exchange rate risks.* Foreign currency financial assets and liabilities of the company at the end of the period are listed in Note VII 81
Foreign Currency Monetary Items.The company closely monitors the impact of exchange rate fluctuations on its exchange rate risk. The company
currently takes no measures to hedge exchange rate risk. However the Management is responsible for monitoring
exchange rate risk and will consider hedging significant exchange rate risk when necessary.* Sensitivity analysis
As of June 30 2025 with other risk variables unchanged if the RMB appreciates or depreciates by 5% against
foreign currencies on that day the company's net profit for the year will increase or decrease by RMB741700
(comparison period: approximately RMB617700).
(2) Interest rate risk
The company's interest rate risk mainly arises from long-term bank loans bonds payable and other long-term
interest-bearing debts. Financial liabilities with floating interest rates expose the Company to cash flow interest rate
risk and financial liabilities with fixed interest rate expose the Company to fair value interest rate risk. The Company
determines the relative scale of fixed-rate and floating-rate contracts according to the market environment at that time.The Financial Department at the Company's headquarters continuously monitors the Group's interest rate levels. An
increase in interest rates will raise the cost of new interest-bearing debt and the interest expenses on the company's
existing floating-rate debt significantly adversely affecting the company's financial performance. Management will
make timely adjustments based on the latest market conditions.As of June 30 2025 the company had no long-term interest-bearing debts.
2. Hedging
(1) The company carries out hedging business for risk management
Not applicable
(2) The company carries out eligible hedge business and applies hedge accounting
Not applicable
(3) The company carries out hedging business for risk management and is expected to achieve the risk
management objectives but has not applied hedge accounting
Not applicable
3. Financial assets
(1) Classification of transfer methods
Not applicable
(2) Financial assets derecognized due to transfer
Not applicable
149Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(3) Assets transfer financial assets that continue to be involved
Not applicable
13. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
Not applicable
2. Basis for determining the market price of items measured at fair value of the first level on a
continuous and non-continuous basis
Not applicable
3. Qualitative and quantitative information on valuation techniques and important parameters
adopted for continuous and non-continuous Level 2 fair value measurement items
Not applicable
4. Qualitative and quantitative valuation techniques and important parameters of sustainable
and non-sustainable items measured on the basis of fair value of level 3
Not applicable
5. The information of adjustment between the beginning and the end of the book value and
analysis on the sensitivity of the unobservable parameters of sustainable and non-sustainable
items measured on the basis of fair value of tier three
Not applicable
6. Continuous measurement items by fair value reason for conversion among all levels in the
current period and policies for determining the time of conversion
Not applicable
7. Change of valuation technique in the current period and reason for change
Not applicable
8. Condition of fair value of financial assets and financial liabilities not measured at fair value
Not applicable
9. Others
Not applicable
150Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
14. Related parties and related transactions
1. Parent company information
Shareholding Voting rights
Parent company Registration Business nature Registered scale of the scale of thename place capital parent company parent company
in the Company in the Company
Shentian
Technology
Holdings Shenzhen Commercial RMB11661620 40.17% 40.17%
(Shenzhen) Co. services 00.00
Ltd.Parent company
Shentian Technology Holdings (Shenzhen) Co. Ltd. is a 100.00% indirectly owned subsidiary of Aviation Industry
Corporation of China LTD.The ultimate controller of the enterprise is Aviation Industry Corporation of China LTD.
2. Subsidiaries of the Company
See Note X. Equity in other entities: 1 for details about subsidiaries of the Company.
3. Joint ventures and associates of the Company
The Company's significant joint ventures or associates are detailed in the Note X. Equity in other entities: 3.
4. Other related parties
Relationship between
Other related parties other related parties with
the COOEC
Aviation Industry Corporation of China LTD. and its subsidiaries (hereinafter referred to Controlled by the same
as "AVIC and its subsidiaries") party
China Merchants Property Operation & Service Co. Ltd. and its subsidiaries Associated enterprise of
(hereinafter referred to as "CMPO and its subsidiaries") the ultimate controllingparty
Shanghai Watch Industry Co. Ltd. (hereinafter referred to as "Shanghai Watch Associated enterprise of
Industry") the Company
Company directors and senior management (hereinafter referred to as "key Key management
management personnel") personnel
5. Related party transactions
(1) Related transactions for the purchase and sale of commodities the provision and receipt
of services
Purchase of goods/receipt of services
Unit: yuan
Related party Related-party Amount in the Approved Whether the Amount in thetransactions current period transaction limit transaction limit previous period
151Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
is exceeded
Shopping mall
AVIC and its expenses and
subsidiaries commodity 6239244.80 No 9310081.83
purchase
Mall fees and 65000000.00
CMPO and its property
subsidiaries management 5394613.24 No 5757698.71
fees
Total 11633858.04 15067780.54
Sales of goods/ rendering of services
Unit: yuan
Related party Related-party transactions Amount in the current Amount in the previousperiod period
AVIC and its subsidiaries Sales of products andrendering of services 19627421.48 25273499.68
CMPO and its subsidiaries Product sales and propertymanagement fees 1410539.78 1552942.31
Shanghai Watch Industry Sales of products andrendering of services 2018837.18
Total 23056798.44 26826441.99
(2) Associated trusteeship/contracting and commissioned management/outsourcing situation
Not applicable
(3) Related leasing
The COOEC acted as the lessor:
Unit: yuan
Lessee Type of leased asset Lease income recognized Lease income recognizedin this period in previous period
CMPO and its subsidiaries House 25024.53 924190.75
AVIC and its subsidiaries House 281999.98 1025500.43
Total 307024.51 1949691.18
The COOEC acted as lessee:
Unit: yuan
Rental costs for
short-term leases Variable lease
and low-value payments not Interest expense
asset leases for included in the on lease Increase in right-
simplified measurement of
Paid rents liabilities of-use assets
Type
processing (if lease liabilities (if assumed
Lessor of applicable)leased applicable)
asset
Amoun Amoun Amoun Amoun Amoun Amoun Amoun
t in the t in the t in the t in the
Amoun t in the Amoun Amount in the t in the t in the t in the t in the
current previous current
previo current previo current previo current previo
period period period
us
period period
us us us
period period period period period
CMPO House 18422 455.75 18280 26523 2662. 7739. 0.00 -
152Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
and its .90 6.26 7.02 55 60 66765
subsidi .72
aries
AVIC
and its House 78102 1463.-
subsidi .84 37 75092
aries .94
Total 18422 455.75 18280 34333 2662. 9202.-.906.269.8655970.00141858.66
(4) Related guarantees
Not applicable
(5) Loans from and to related parties
Not applicable
(6) Assets transfer and debt restructuring of related parties
Not applicable
(7) Remuneration of key management personnel
Not applicable
(8) Other related party transactions
As at the end of the current year the balance of deposits placed by the Company in AVIC Finance Company
amounted to RMB515494103.34 of which the deposit interest received in the current year amounted to
RMB528809.72.
6. Receivables from and payable to related parties
(1) Receivable items
Unit: yuan
Balance at the end of the period Beginning balance
Project Related party
Book balance Provision for baddebts Book balance
Provision for bad
debts
Bank
deposit AVIC Finance 515494103.34 498616224.42
Notes AVIC and its
receivable subsidiaries 508273.49
Accounts AVIC and its
receivable subsidiaries 2847374.43 299121.84 2894425.51 281416.75
Accounts CMPO and its
receivable subsidiaries 229665.76 11483.29
Accounts Shanghai Watch 779600.00 31184.00
153Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
receivable Industry
Other AVIC and its
receivables subsidiaries 847287.00 42364.35 924947.00 47070.35
Other CMPO and its
receivables subsidiaries 77990.00 3899.50 56000.00 2800.00
(2) Payable items
Unit: yuan
Project Related party Book balance as at the end Book balance as at theof the year beginning of the year
(XXXI) Other payables AVIC and its subsidiaries 96200.00 358280.00
(XXXI) Other payables CMPO and its subsidiaries 1771163.40 1066456.79
Prepayments AVIC and its subsidiaries 7500.00
7. Commitments of related parties
Not applicable
8. Others
Not applicable
15. Share-based payment
1. Overall situation of share-based payment
Not applicable
2. Equity-settled share-based payment
Not applicable
3. Cash-settled share-based payment
Not applicable
4. Share-based payment expenses in the current period
Not applicable
5、5. Modification and termination of share-based payment
Not applicable
6、Others
Not applicable
154Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
16. Commitments and contingencies
1. Important commitments
As of the balance sheet date the significant external commitments and impacts of the Company are the lease
contracts that the Company has signed and is in the process of performing or preparing to perform and the financial
impacts thereof which are detailed in Note VII 47 Lease liabilities and Note VII 82 Lease.Except for the above commitments as of June 30 2025 the company has no other significant commitments
requiring disclosure.
2. Contingencies
(1). Significant contingencies existing on the Balance Sheet Date
Not applicable
(2) If the company has no important contingencies required to be disclosed it shall also be
explained
There were no significant contingencies required to be disclosed.
3. Others
Not applicable
17. Events after the balance sheet date
1. Important non-adjusting matters
Not applicable
2. Profit distribution
Not applicable
3. Sales returns
Not applicable
4. Notes to other events after the Balance Sheet Date
Not applicable
155Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
18. Other significant events
1. Correction of accounting previous errors
(1) Retrospective restatement method
Not applicable
(2) Future applicable law
Not applicable
2. Debt restructuring
Not applicable
3. Assets replacement
(1) Exchange of non-monetary assets
Not applicable
(2) Replacement of other assets
Not applicable
4. Annuity plan
Not applicable
5. Discontinued operation
Not applicable
6. Segment information
(1) Determination basis and accounting policies for report segments
The Company determines the operating segments based on the internal organizational structure management
requirements and internal reporting system. The Company's operating segment refers to the component that meets
the following conditions at the same time:
(1) The component can generate income and expenses in daily activities;
(2) The management is able to regularly evaluate the operating results of the component in order to determine the
allocation of resources to them and evaluate their performance;
(3) The financial position operating results cash flows and other relevant accounting information of the
component can be obtained.
156Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
The Company determines report segments on the basis of operating segments and the operating segments that
meet one of the following conditions are recognized as report segments:
(1) The segment revenue of the operating segment accounts for 10% or more of the total revenue of all segments;
(2) The absolute amount of the segment's profit (loss) accounts for 10% or more of the greater of the total profit of
all profitable segments or the total loss of all loss-making segments.The Company operates a single line of business primarily the production and sale of watches. Management
views and manages this business as a whole and evaluates its operating results accordingly. Therefore this financial
statement does not report segment information.
(2) Financial information of report segments
Not applicable
(3) If the company has no report segments or cannot disclose the total assets and total
liabilities of each report segment it shall explain the reasons
Not applicable
(4) Other notes
Not applicable
7. Other important transactions and events that affect the decision-making of investors
Not applicable
8. Others
Not applicable
19. Notes to the major items of the Parent Company's Financial Statements
1. Accounts receivable
1. Disclosure by aging
Unit: yuan
Aging Book balance as at the end of the Book balance as at the beginning ofyear the year
Within 1 year (including 1 year) 6501883.90 6238972.29
1-2 years 4753570.97 238812.42
2-3 years 319.04
Over 3 years 319.04
3-4 years 319.04
Total 11255773.91 6478103.75
157Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
(2). Disclosure under the methods of provision for bad debts by category
Unit: yuan
Balance at the end of the period Beginning balance
Book balance Provision for bad Book balance Provision for bad
Type debts debtsBook Book
Drawing value Drawing value
Amount Ratio Amount percent Amount Ratio Amount percent
ages ages
Account
s
receiva
ble with
provisio
n for 16305 14.49% 16305 100.00 0.00 16317 16317 100.00
bad 56.66 56.66 % 98.66
25.19%98.66%0.00
debts
by
individu
al
Inclu
ding:
Account
s
receiva
ble with
provisio
n for 96252 85.51% 677531 7.69% 89476 48463 74.81% 214314 4.42% 46319
bad 17.25 .75 85.50 05.09 .71 90.38
debts
by
combin
ation
Inclu
ding:
Combin
ation of
receiva
bles 8812633.50 78.29%
6775318135140417.757.69%01.7536.3462.39%
214314.715.30%
38274
from 21.63
custom
ers
Combin
ation of
related
parties
within 812583 7.22% 0.00% 812583 804568 804568the .75 .75 .75 12.42% .75
scope
of
consoli
dation
Total 11255 100.00 23080 89476 64781 100.00 18461 46319773.91 % 88.41 20.51% 85.50 03.75 % 13.37 28.50% 90.38
158Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Category name of provision for bad debts by individual: accounts receivable from customers
Unit: yuan
Beginning balance Balance at the end of the period
Name
Book balance Provision forbad debts Book balance
Provision for Drawing Reason for
bad debts percentages provision
Receivables Poor
from 1631798.66 1631798.66 1630556.66 1630556.66 100.00% operation of
customers customers
Total 1631798.66 1631798.66 1630556.66 1630556.66
Category name of provision for bad debts by combination: combination of accounts receivable from customers
Unit: yuan
Balance at the end of the period
Name
Book balance Provision for bad debts Drawing percentages
Combination of receivables
from customers 8812633.50 677531.75 7.69%
Total 8812633.50 677531.75
Description of the basis for determining the combination: receivables of the same aging have similar credit risk
characteristics.Name of provision for bad debts by combination: combination of related parties within the scope of consolidation
Unit: yuan
Balance at the end of the period
Name
Book balance Provision for bad debts Drawing percentages
Combination of related
parties within the scope of 812583.75
consolidation
Total 812583.75
Description of the basis for determining the combination: receivables of the same aging have similar credit risk
characteristics.If the provision for bad debts of accounts receivable is made according to the general expected credit loss model:
Not applicable
(3) Status of bad debt provision recovery or reversal for the period
Provision for bad debts in the current period:
Unit: yuan
Change in this period
Beginning Balance at theType balance end of theProvision Recovery orreversal Write-off Others period
Accounts
receivable
with provision
for expected 1631798.66 1242.00 1630556.66
credit losses
by individual
Accounts
receivable 214314.71 559713.02 96495.98 677531.75
159Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
with provision
for expected
credit losses
by
combination
Total 1846113.37 559713.02 97737.98 2308088.41
(4). Situation of accounts receivable actually written off in the current period
Not applicable
(5) Accounts receivable and contractual assets collected from the debtors which rank the first
five at the end of period
Unit: yuan
Ending balance
Proportion in the of provision for
Ending balance Ending balance Ending balances
total ending bad debts of
of accounts balance of accountsEntity name of accounts of contract accounts receivable and
receivable assets receivable andcontract assets receivable and provision forcontractual impairment of
assets contractual
assets
Summary of
accounts
receivable which
ranks the first 7996400.90 7996400.90 71.04% 1667674.90
five at the end of
period
Total 7996400.90 7996400.90 71.04% 1667674.90
2. Other receivables
Unit: yuan
Item Balance at the end of the period Beginning balance
Other receivables 519456909.65 659565868.48
Total 519456909.65 659565868.48
(1) Interest receivable
1) Classification of interest receivable
Not applicable
2) Important overdue interest
Not applicable
160Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
3). Disclosure under the methods of provision for bad debts by category
Not applicable
4). Status of bad debt provision recovery or reversal for the period
Not applicable
5) Situation of interest receivable actually written off in the current period
Not applicable
(2) Dividends receivable
1) Classification of dividends receivable
Not applicable
2) Important dividends receivable with aging over 1 year
Not applicable
3). Disclosure under the methods of provision for bad debts by category
Not applicable
4). Status of bad debt provision recovery or reversal for the period
Not applicable
5) Situation of dividends receivable actually written off in the current period
Not applicable
(3) Other receivables
1) Classification of other receivables by nature
Unit: yuan
Nature of payment Book balance as at the end of the Book balance as at the beginning ofyear the year
Payments of related parties within
the scope of consolidation 518993447.05 658724812.91
Margin and deposits 129081.90 119550.00
Others 391289.13 778125.19
Total 519513818.08 659622488.10
161Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
2) Disclosure by aging
Unit: yuan
Aging Book balance as at the end of the Book balance as at the beginning ofyear the year
Within 1 year (including 1 year) 519335919.55 659558728.69
1-2 years 115260.00 14177.51
2-3 years 13056.63 9531.90
Over 3 years 49581.90 40050.00
3-4 years 9531.90
4-5 years 40050.00
Over 5 years 40050.00
Total 519513818.08 659622488.10
3). Disclosure under the methods of provision for bad debts by category
Unit: yuan
Balance at the end of the period Beginning balance
Book balance Provision for bad Provision for baddebts Book balance debts
Type Drawin Book Drawin Book
value value
Amount Ratio Amount gpercent Amount Ratio Amount
g
percent
ages ages
Account
s
receiva
ble with
provisio
n for
bad
debts
by
individu
al
Inclu
ding:
Provisio
n for
bad
debts 519513 100.00 56908. 0.01% 519456 659622 100.00 56619. 659565
made 818.08 % 43 909.65 488.10 % 62
0.01%868.48
by
portfolio
Inclu
ding:
Combin
ation of
margin 129081 53556. 75525. 119550 44025. 75525.and .90
0.02%9041.49%00.000.02%0036.83%00
deposit
162Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
receiva
bles
Combin
ation of
receiva
bles of
related
parties 518993 99.90% 0.00 0.00% 518993 658724 659443within 447.05 447.05 812.91 99.86% 0.00 0.00% 468.69
the
scope
of
consoli
dation
Combin
ation of
other 391289 0.08% 3351.5 0.86% 387937 778125 12594. 765530
financin .13 3 .60 .19
0.12%621.62%.57
gs
Total 519513 100.00 56908. 0.01% 519456 659622 100.00 56619. 0.01% 659565818.08 % 43 909.65 488.10 % 62 868.48
Category name of provision for bad debts by combination: combination of margin and deposit receivable
Unit: yuan
Balance at the end of the period
Name
Book balance Provision for bad debts Drawing percentages
Combination of margin and
deposit receivable 129081.90 53556.90 41.49%
Total 129081.90 53556.90
Description of the basis for determining the combination: payments of the same nature have similar credit risk
characteristics.Name of provision for bad debts by combination: combination of accounts receivable related parties within the scope
of consolidation
Unit: yuan
Balance at the end of the period
Name
Book balance Provision for bad debts Drawing percentages
Combination of receivables of
related parties within the scope 518993447.05
of consolidation
Total 518993447.05
Description of the basis for determining the combination: payments of the same nature have similar credit risk
characteristics.Category name of provision for bad debts by combination: other accounts receivable
Unit: yuan
Balance at the end of the period
Name
Book balance Provision for bad debts Drawing percentages
Combination of other
financings 391289.13 3351.53 0.86%
Total 391289.13 3351.53
Description of the basis for determining the combination: payments of the same nature have similar credit risk
characteristics.Provision for bad debts made according to the general expected credit loss model:
163Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Unit: yuan
Phase I Phase II Phase III
Provision for bad Expected credit Expected credit loss
Expected credit loss
debts losses over the next throughout the
throughout the Total
duration (credit
12 months duration (no creditimpairment) impairment hasoccurred)
Balance as of Jan. 1
202556619.6256619.62
Balance as of
January 1 2025 in
the current period
- Transfer to phase II
- Transfer to phase
III
- Reversal to phase II
- Reversal to phase I
Provision in this
period 288.81 288.81
Balance as of June
30202556908.4356908.43
The basis for the division of each stage and the ratio of provisions for bad debts
The phase I is the bad debt provision for other receivables within one year. The phase II is the bad debt provision for
accounts receivable over one year that have not been individually assessed. The phase III is the bad debt provision for
individually assessed accounts receivable.Changes in book balance with significant amount of loss provision in the current period
Not applicable
4). Status of bad debt provision recovery or reversal for the period
Provision for bad debts in the current period:
Unit: yuan
Change in this period
Beginning Balance at theType balance Provision Recovery or Resale or
end of the
reversal write-off Others period
Provision for
bad debts
made by 56619.62 288.81 56908.43
portfolio
Total 56619.62 288.81 56908.43
5) Situation of other accounts receivable actually written off in the current period
Not applicable
164Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
6). Other receivables collected from the debtors which rank the first five at the end of period
Unit: yuan
Proportion in the
Entity name Nature of Balance at the total ending
Ending balance
amount end of the period Aging balance of other of provision for
receivables bad debts
Summary of other Receivables
accounts receivable of related
which rank the first parties within 518993447.05 Within 1 year 99.90% 0.00
five at the end of the scope of
period consolidation
Total 518993447.05 99.90% 0.00
7) Presented in other receivables due to centralized management of funds
Not applicable
3. Long-term equity investments
Unit: yuan
Balance at the end of the period Beginning balance
Item
Book balance Provisions forimpairment Book value Book balance
Provisions for
impairment Book value
Investment in 1592543885 1592543885 1592543885 1592543885
subsidiaries .91 .91 .91 .91
Investments in
associates
and joint 51401581.98 51401581.98 50907036.84 50907036.84
ventures
Total 1643945467 1643945467 1643450922 1643450922.89 .89 .75 .75
(1) Investment in subsidiaries
Unit: yuan
Beginning Increase/decrease in this period Balance of
Beginning balance of Ending provision
Investee balance provision Additional Reduced
Provision balance for
(book for for (book impairmeninvestmen investmen
value) impairmen t t impairmen
Others
value) t as at the
t t accrued end of theperiod
Shenzhen
Harmony
World 6098919 6098919
Watch 73.62 73.62
Centre
Co. Ltd.Shenzhen
Harmony 1168448 1168448
E- 4.39 4.39
165Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
commerce
Co. Ltd.Shenzhen
FIYTA
Precision 1822908 1822908
Technolog 34.31 34.31
y Co. Ltd.Shenzhen
FIYTA 5116014 5116014
STD Co. 1.67 1.67
Ltd.FIYTA
(HONG 1377375 1377375
KONG) 20.00 20.00
LIMITED
Temporal
(Shenzhe 5000000. 5000000.n) Co. 00 00
Ltd.FIYTA
Sales Co. 4572971 4572971
Ltd. 83.13 83.13
Liaoning
Hengdarui
Commerc 3686784 3686784
e and 3.96 3.96
Trade Co.Ltd.Emile
Chouriet
Horologe 8061390 8061390
(Shenzhe 4.83 4.83
n) Co.Ltd.Harmony
World
Watch 1000000 1000000
Centre 0.00 0.00
(Hainan)
Co. Ltd.Shenzhen
Xunhang
Precision 1000000 1000000
Technolog 0.00 0.00
y Co. Ltd.Total 1592543 1592543885.91 885.91
(2). Investments in associates and joint ventures
Unit: yuan
Begin Begin Increase/decrease in this period Endin Balan
Investme ning ning Addi Reduc Invest Other Other Cash Provis g ce of
nt unit balan balan tion ed ment compr chang divide ion for Other balan provisi
ce ce of al invest incom ehens es in nds or impair s ce on for
(book provis inve ment e or ive equity profits ment (book impair
166Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
value) ion stm loss incom declar accru value) ment
for ent recog e ed to ed as at
impair nized adjust be the
ment under ments distrib end of
equity uted the
metho period
d
1. Joint ventures
2. Associated enterprise
Shangha
i Watch 5090 5140
Industry 7036
4945.8445.14
1581.
Co. Ltd. 98
50905140
Sub-total 7036 4945.8445.14
1581.
98
50905140
Total 7036 4945.8445.14
1581.
98
(3) Other notes
Not applicable
4. Operating income and operating costs
Unit: yuan
Amount in the current period Amount in the previous period
Item
Revenue Cost Revenue Cost
Primary business 79218866.11 25511651.20 93442375.61 28763610.04
Other business 2255957.31 2209518.25
Total 81474823.42 25511651.20 95651893.86 28763610.04
5. Investment income
Unit: yuan
Item Amount in the current period Amount in the previous period
Long-term equity investment income
calculated under the equity method 494545.14 89872.06
Total 494545.14 89872.06
6. Others
Not applicable
167Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
20. Additional information
1. Breakdown of current non-recurring profit and loss
Unit: yuan
Item Amount Notes
Losses from disposal of non-current assets -424407.32
Government grants recognized in current
profit and loss (excluding those closely related
to the Company's normal operations in
compliance with national policies entitled in 1509835.03
accordance with set standards and having a
sustained impact on the Company's profit and
loss)
Profit or loss on fair value changes arising
from the holding of financial assets and
financial liabilities by non-financial enterprises
and the profit or loss arising from the disposal 247499.84
of financial assets and liabilities except for
effective hedging operations associated with
COOEC's normal operations
Reversal of receivables tested for impairment
separately provision for impairment 2807146.61
Non-operating revenue and expenses other
than the above-mentioned items 984766.23
Less: income tax effects 1056602.55
Total 4068237.84 --
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
2. Return on equity and Earnings per share
Earnings per share
Profit in the reporting Return on weighted
period average net assets Basic earnings per share Diluted earnings per share
(yuan/share) (yuan/share)
Net profit attributable to
ordinary shareholders of 2.41% 0.2034 0.2034
the COOEC
Net profits attributable to
ordinary shareholders of
the COOEC after 2.29% 0.1933 0.1933
deducting non-recurring
profit or loss
168Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
3. Differences in accounting data under domestic and overseas accounting standards
(1). Differences in net profit and net assets in the financial reports disclosed in accordance
with international accounting standards and Chinese accounting standards
Not applicable
(2). Differences in net profit and net assets in the financial reports disclosed in accordance
with overseas accounting standards and Chinese accounting standards
Not applicable
(3) Explanation of the reasons for the differences in accounting data under domestic and
overseas accounting standards. If the data has been audited by an overseas audit institution
for difference adjustment the name of the overseas institution shall be indicated
4. Others
Not applicable
169Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Section 9 Other data submission
I. Other major social security issues
Whether the listed company and its subsidiaries have other major social security issues
No
Whether there were administrative penalties during the reporting period
No
II. Registration form for reception survey communication interview and other
activities during the reporting period
Main contents
Reception Reception Reception Object discussed Index of basic
time place mode type Reception object and information ofinformation the survey
provided
Online
https://ese communicati Investors who participated Company https://irm.cniMarch 27 b.cn/1mA8 on on the Others in the Company's 2024 operation and nfo.com.cn/irc2025 hfz6A4o network Online Performance development s/searchkey
platform Briefing online planning etc. word=000026
Shenzhen Qianhai Juntong
Tianxia Asset Management
Co. Ltd. Caixin Securities
Co. Ltd. Shenzhen
Yunzhong Chuangrong
Investment Co. Ltd. China
Galaxy Securities Co. Ltd.Conferenc Shenzhen Qianhai Yujin
March 28 e room of Investment Management
Company https://irm.cni
2025 FIYTA Field survey agencies Co. Ltd. Shenzhen
operation and nfo.com.cn/irc
Technolog Minfeng Private Securities development s/searchkey
y Building Investment Fund planning etc. word=000026
Management Co. Ltd.Beijing Fangyuan Jinding
Investment Management
Co. Ltd. Asia Pacific
Huijin Fund Management
(Shenzhen) Co. Ltd.Jingcheng Capital
Shenzhen Qianhai
Hengjiang Union
Investment Management
Conferenc Co. Ltd. Fortune Factorial
e room of (Hong Kong) Fund Limited Company https://irm.cniApril 3 FIYTA Field survey agencies Shenzhen Chuanghua operation and nfo.com.cn/irc2025 Technolog Investment Consulting Co. development s/searchkey
y Building Ltd. Shenzhen Quadrel planning etc. word=000026Investment Consulting Ltd.Guangdong Listed
Companies Association
Shenzhen Dexun
170Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Securities Consulting Co.Ltd. Hunan Aiying
Securities Investment
Consulting Co. Ltd.Shenzhen Desheng
Financial Holding Group
Co. Ltd. Far East Horizon
Ltd. Fullgoal Fund
Management Co. Ltd.Bosera Fund Management
Co. Ltd. Beijing Zhishun
Investment Management
Co. Ltd. Dajia Asset
Management Co. Ltd.Guangdong Zhengyuan
Private Fund Management
Co. Ltd. China Life AMP
Asset Management Co.Ltd. Guotai Haitong
Securities Co. Ltd. HFT
Investment Management
Co. Ltd. Hetai Life
Insurance Co. Ltd.Hengyue Fund
Management Co. Ltd.Hotland Innovation Asset
Management Co. Ltd.HSBC Jintrust Fund
Management Co. Ltd.CCB Principal Asset
Management Co. Ltd. Company
China Southern Asset operation
June 6 Telephone Telephone Management Co. Ltd. development
https://irm.cni
and web communicati agencies Lion Fund Management planning nfo.com.cn/irc2025 conference on Co. Ltd. Penghua Fund proposed s/searchkey
Management Co. Ltd. acquisition word=000026
Ping An Fund Management projects etc.Co. Ltd. Ping An Wealth
Management Co. Ltd.UBP Investment
Management (Shanghai)
Limited Shanghai
Haoxiang Asset
Management Co. Ltd.Shanghai Chaos
Investment (Group) Co.Ltd. Shanghai Mingyu
Asset Management Co.Ltd. Shanghai Panwen
Investment Management
Co. Ltd. Shanghai
Wisdomshire Asset
Management Co. Ltd.Shanghai Ruisheng Private
Equity Fund Management
Center (Limited
Partnership) Shanghai
Tuling Asset Management
171Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Co. Ltd. Shanghai
Chongyang Investment
Management Co. Ltd.SAIC Qizhen (Shanghai)
Asset Management Co.Ltd. Shenwan Hongyuan
Securities Asset
Management Co. Ltd.Shenzhen Jointfull Capital
Management Co. Ltd.Pacific Asset Management
Co. Ltd. Taishan Property
& Casualty Insurance Co.Ltd. Tongtai Fund
Management Co. Ltd.Tibet Yinfan Investment
Management Co. Ltd.Xinjiang Qianhai Alliance
Fund Management Co.Ltd. AEGON-Industrial
Fund Management Co.Ltd. Xunyuan Asset
Management (Shanghai)
Co. Ltd. Yinhua Fund
Management Co. Ltd.China International Capital
Corporation Ltd. Zhong Ou
Asset Management Co.Ltd. Zhuhai Hengqin
Wanfang Private Fund
Management Partnership
(Limited Partnership)
Fidelity Investments
KITMC
Guotai Haitong Securities
Co. Ltd. Shenwan
Hongyuan Securities Co.Ltd. Perseverance Asset
Management Co. Ltd.Qianhai Alliance Fund
Management Co. Ltd.Southwest Securities Co.Ltd. Ping An Fund
Management Co. Ltd. Companyoperation
Jun. 13 Telephone Telephone
Hotland Innovation Asset https://irm.cni
and web communicati agencies Management Co. Ltd.development
2025 China Fortune Securities planning
nfo.com.cn/irc
conference on Co. Ltd. Western proposed
s/searchkey
word=000026
Securities Co. Ltd. acquisition
Baoying Fund projects etc.Management Co. Ltd.Shanghai Ruisheng
Investment Management
Co. Ltd. Shanghai
Haoxiang Asset
Management Co. Ltd.Lion Fund Management
Co. Ltd. Northeast
172Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Securities Co. Ltd. CITIC
Prudential Fund
Management Co. Ltd.Qiming Weichuang
Venture Capital
Management (Shanghai)
Co. Ltd. Ping An
Securities Co. Ltd. China
Universal Asset
Management Co. Ltd.Shanghai Silver Leaf
Investment Co. Ltd.Zhejiang Weixing Asset
Management Co. Ltd.Ping An Asset
Management Co. Ltd.III. Funds transactions between listed company and controlling shareholders and
other related parties
Unit: RMB'0000
Amount Amount
Name of Nature of Beginning occurredduring repaid during
Balance at Interest Interest
counterparty transaction balance reporting reporting
the end of income expenditur
period period
the period es
AVIC and its Operational
subsidiaries transactions 432.76 2248.64 2311.93 369.47
CMPO and its Operational
subsidiaries transactions 5.60 162.12 136.95 30.77
Shanghai
Watch Operational
Industry Co. transactions 239.43 161.47 77.96
Ltd.Shenzhen
Harmony Non-
World Watch operational 52655.22 108099.40 119920.18 40834.44 114.55
Centre Co. transactions
Ltd.Liaoning
Hengdarui Non-
Commerce operational 6854.85 114.79 293.15 6676.49
and Trade transactions
Co. Ltd.Temporal Non-
(Shenzhen) operational 4193.37 2333.44 2733.94 3792.87
Co. Ltd. transactions
Shenzhen
FIYTA Non-
Precision operational 1046.31 13920.57 14966.88
Technology transactions
Co. Ltd.Shenzhen Non-
Xunhang operational 822.73 1949.24 2476.43 295.54
Precision transactions
173Full text of 2025 Semi-annual Report of FIYTA Precision Technology Co. Ltd.
Technology
Co. Ltd.Shenzhen Non-
FIYTA STD operational 300.00 127.35 127.35 300.00
Co. Ltd. transactions
Emile
Chouriet Non-
Horologe operational 3355.69 3355.69
(Shenzhen) transactions
Co. Ltd.Shenzhen
Harmony E- Non-
commerce operational 9.85 9.85
Co. Ltd. transactions
Harmony
World Watch Non-
Centre operational 238.00 238.00
(Hainan) Co. transactions
Ltd.FIYTA Sales Non-
Co. Ltd. operational 26460.45 26460.45transactions
Total -- 66310.84 159258.97 173192.27 52377.54 114.55
Relevant The company's 2024 Annual Shareholders' Meeting reviewed and approved the "Proposal on the
decision- Estimation of Daily Related Party Transactions for 2025". The above-mentioned operational fund
making transactions with related parties are within the scope of the annual related party transaction
procedures estimation.Fund security
measures The aforementioned related parties have good integrity and can fulfill the contract as agreed.FIYTA Precision Technology Co. Ltd.Board of Directors
August 23 2025
174
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