FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
FIYTA HOLDINGS LTD.
2019 Semi-annual Report
August, 2019
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Section 1 Important Notice, Table of Contents and Definition
The Board of Directors, the Supervisory Committee, directors, supervisors and senior executives hereby
individually and collectively accept responsibility for the correctness, accuracy and completeness of the
contents of this report and confirm that there are neither material omissions nor errors which would render any
statement misleading.
Huang Yongfeng, the Company leader, Chen Zhuo, chief financial officer, and Tian Hui, the manager of the
accounting department (treasurer) hereby confirm the authenticity and completeness of the financial report
enclosed in this Annual Report.
All the directors attended the board meeting for reviewing the Annual Report.
Any perspective description, such as the future plan, development strategy, etc. involved in the Annual Report
shall not constitute the Company’s substantial commitment to the investors and the investors should please pay
attention to their investment risks.
In this report, the Company has described in detail the existing macro-economic risks as well as operation risks.
Investors are advised to refer to the contents concerning risk factors possibly to be confronted with and the
countermeasures in the Company's future development prospect in Section 4 Discussion and Analysis of the
Management
The Company intends neither to distribute any cash dividend or bonus shares nor to convert any reserve into
share capital.
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Table of Contents
Section 1 Important Notice, Table of Contents and Definition
Section 2 Company Profile and Financial Highlights
Section 3 Business Summary
Section 4 Discussion and Analysis of the Management
Section 5 Significant Events
Section 6 Change of Shares and Particulars about Shareholders
Section 7 About the Preferred Shares
Section 8 Directors, Supervisors, Senior Executives and Employees
Section 9 Corporate Bonds
Section10 Financial Report
Section11 Documents Available for Inspection
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Definitions
Terms to be defined Refers to Definition
This Company, the Company or FIYTA Refers to FIYTA HOLDINGS LTD.
AVIC Refers to Aviation Industry Corporation of China, Ltd.
AVIC International Refers to AVIC International Holding Corporation
AVIC International Shenzhen Refers to AVIC International Shenzhen Co., Ltd.
AVIC IHL Refers to AVIC International Holding Limited
The Sales Co. Refers to FIYTA Sales Co., Ltd.
Harmony Refers to Shenzhen Harmony World Watches Center Co., Ltd.
the Manufacture Co. Refers to Shenzhen FIYTA Sophisticated Timepieces Manufacture Co., Ltd.
the Technology Co. Refers to Shenzhen FIYTA Technology Development Co., Ltd.
the Hong Kong Co. Refers to FIYTA (Hong Kong) Limited
SHIYUEHUI Refers to Shiyuehui Boutique (Shenzhen) Co., Ltd.
Hengdarui Refers to Liaoning Hengdarui Commerce & Trade Co., Ltd.
Harbin Co. Refers to Harbin Harmony World Watch Distribution Co., Ltd.
AVIC SUNDA Refers to AVIC SUNDA Co., Ltd.
Rainbow Ltd. Refers to Rainbow Department Store Co., Ltd.
Shennan Circuit Refers to Shennan Circuit Co., Ltd.
AVIC Property Refers to AVIC Property Management Co., Ltd.
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Section 2 Company Profile and Financial Highlights
I. Company Profile
Short form of the stock: FIYTA A, FIYTA B Stock Codes: 000026 and 200026
Stock Exchange Listed with Shenzhen Stock Exchange
Company Name in Chinese FIYTA HOLDINGS LTD.
Abbreviation of Registered
飞亚达公司
Company Name in Chinese
Company name in English (if any) FIYTA HOLDINGS LTD.
Abbreviation of the Company
FIYTA
name in English (if any)
Legal Representative Huang Yongfeng
II. Liaison Persons and Communication Information
Secretary of the Board Securities Affairs Representative
Name Lu Wanjun Zhang Yong
20th Floor, FIYTA Technology Building, Gaoxin 20th Floor, FIYTA Technology Building, Gaoxin
Liaison Address
S. Road One, Nanshan District, Shenzhen S. Road One, Nanshan District, Shenzhen
Tel. 0755-86013669 0755-86013669
Fax 0755-83348369 0755-83348369
Email investor@fiyta.com.cn investor@fiyta.com.cn
III. Other Information
1. Way of Communication
There is no change in the registered address, office address and post code, company website, email during the
reporting period. For the detail, refer to 2018 Annual Report.
2. Information Disclosure and Place where the Regular Reports are Prepared
Newspapers designated for disclosing the information, Internet web site designated by China Securities Regulatory
Commission for publishing the Semi-annual Report, place of the Company’s Semi-annual Report prepared for inquiry, for
the detail, refer to 2018 Annual Report.
IV. Summary of Accounting/Financial Data
Does the Company need to make retroactive adjustment or restatement of the accounting data of the previous years
No
Same period of the previous Year-on-year increase/decrease in
Reporting period
year the reporting period
Revenue in CNY 1,785,036,020.23. 1,695,891,432.72. 5.26%
Net profit attributable to the Company’s
123,495,460.90. 112,367,921.44. 9.90%
shareholders, in CNY
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Net profit attributable to the Company’s
shareholders less the non-recurring items, in 113,627,146.69. 99,759,371.16. 13.90%
CNY
Net cash flows arising from operating activities,
159,014,650.37. 224,672,274.09. -29.22%
in CNY
Basic earning per share (CNY/share) 0.2788. 0.2561. 8.86%
Diluted earning per share (CNY/share) 0.2788. 0.2561. 8.86%
Return on equity, weighted average 4.69% 4.45% 0.24%
Increase/decrease at the end of
End of the reporting period End of the previous year the year over the end of the
previous year
Total assets (in CNY) 3,660,456,223.27. 3,599,691,650.26. 1.69%
Net profit attributable to the Company’s
2,683,297,649.42. 2,570,134,782.90. 4.40%
shareholders, in CNY
The cause of the change in the accounting policy and the correction of the accounting errors are based on the Circular on
Revising and Issuing the 2018 Versions of General Corporate Financial Statement Templates and the Interpretation of the
Relevant Issues in the 2018 Versions of General Corporate Financial Statement Templates promulgated by the Ministry of
Finance: the item of R & D Expenses is to be added to the Statement of Profit, the R & D expenses in the first half of 2018
increased by CNY 21,285,926.02 and the administrative expenses decreased by CNY 21,285,926.02.
V. Difference in the Accounting Data based respectively on the Chinese Accounting Standards (CAS) and
International Accounting Standards (IAS)
1. Differences in the net profit disclosed in the financial report & the net assets attributable to the Company’s shareholders
respectively according to the IAS and the CAS.
Inapplicable
2. Differences in the net profit disclosed in the financial report & the net assets attributable to the Company’s shareholders
according to both the IAS and the CAS
Inapplicable
VI. Non-recurring gain/loss items and the amount involved
In CNY
Items Amount Note
It refers to the loss from disposal of
Gain/loss from disposal of non-current assets, including the part offset
-212,010.13 fixed assets, such as the obsolete
from the provision for impairment of assets.
production equipment
The government subsidies included in the profits and losses of the For detail, refer to the supplementary
current period ( (excluding government grants which are closely related 13,045,742.36 description of the government
to the Company’s business and conform with the national standard subsidy counted to the current profit
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
amount or quantity) and loss, Note VII.67.
It mainly refers to the security deposit
Other non-operating income and expenses other than the aforesaid
-230,194.27 due to the advance withdrawal of the
items
shops in some channels, etc.
Less: Amount affected by the income tax 2,735,223.75
Total 9,868,314.21 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering their Securities to the Public – Non-recurring Gains and Losses and its non-recurring
gain/loss items as illustrated in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
their Securities to the Public – Non-recurring Gains and Losses which have been defined as recurring gains and losses, it
is necessary to explain the reason.
Inapplicable
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Section 3 Business Summary
I. Main business the Company operated in the reporting period
Does the Company need to comply with the disclosure requirements of special industry
No
During the reporting period， the Company took “creating quality life” as its mission, focused on watch business, insisted
on the brand strategy, adhered to the innovation development, complied with the consumption grading trend, continuously
carried forward the work of improving the brand with FIYTA brand as the core, seized the opportunity of the growth of
medium- and high-end brands, continued to propel the work of channel upgrading and service improvement with
HARMONY as the core.
During the reporting period, there was no significant change in the Company's main business and business model,
industry development status and the status of the Company's industry. For detail, please refer to 2018 Annual Report.
II. Significant Movements in Prime Assets
1. Significant Movements in Prime Assets
Inapplicable
2. Major Overseas Assets
Inapplicable
III. Analysis on Core Competitiveness
Does the Company need to comply with the disclosure requirements of special industry
No
I. Unique Business Layout of “Watch Brand Management + Watch Retail Services” in the Industry
Incorporated in 1987, FIYTA experienced over three decades’ accumulation and innovation breakthrough, constructed the
brand management business with FIYTA Brand as the core and watch retail business with Harmony as the core and the
two businesses supplemented each other and developed in a coordinated way; both take the leading position in the
domestic market at present. The unique business layout of “Watch Brand Management + Watch Retail Services” have
provided a guarantee for the Company's sustainable development and “becoming a leading internationalized watch brand
enterprise”.
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
II. Profound Brand Management Experience and Clear Segmented Market Positioning
With reference to the experience of brand management experience of various world watches distributed by HARMONY
retail business as well as its own FIYTA Brand molding experience, the Company took a lead in constructing multi-brand
tribe with watch brands of FIYTA, EMILE CHOURIET, JONAS&VERUS, Jeep and BEIJING as the key brands, constantly
constructed brand identities of professional watch manufacture, classic and elegance, young fashion, intelligence and
outdoors, oriental aethetics, etc. These brands have become the leading brands in the segmented market.
III. National Watch Base and First Class Product Design Ability
The Company is a national technological innovation demonstration enterprise, national industrial design center and
national technology certification center for enterprises, and an organization integrating and implementing the standards
for informationization and industrialization by the Ministry of Industry and Information Technology. All its subordinative
manufacturers are national hi-tech enterprises; has constructed its professional watch manufacture ability in respect of
driving unit manufacture, space watch development, high-end watch manufacture techniques, etc. Meanwhile, the
Company has kept a leading position in the industry in terms of product quality and creative design ability.
IV. High Quality Brand, Channel Resources and Nationwide Retail Service Network
In watch retail business with HARMONY as the core, the Company has established close cooperative relationship with a
great many world top brands and mainstream brands, including Omega, Breguet, Blancpain, Glashutte Original, Jaquet
Droz, Longines, Tissot, etc. subordinate to Swatch Group; Rolex and TUDOR subordinate to Rolex; A.LANGE &
SOHNE,JAEGER LE-COULTRE,CARTIER,PIAGET, IWC, etc. subordinate to Richemont Group; GIRARD PERREGAUX
and ULYSSE NARDIN subordinate to Kering Group; as well as such independent brands as CHOPARD, Bucherer,
BREITLING, etc. The Company has also established strategic cooperative relationship with various high grade shopping
malls, such as MIXC as well as various high grade department stores in China, possesses top quality brands and channel
resources in the industry. The Company has established nationwide watch retail service network.
V. Profound Industrial Management Experience and Sustainable Talents Reserve
The Company constantly enhanced construction of the “Brand People” team, continuously improved the profession and
comprehensive qualification of the team, actively created a team atmosphere of progressiveness, struggle, continuous
improvement and devotion to work. The major members of the management and business backbones of the Company
have been engaged in watch industry for long time and have rich experience in brand management and channel operation,
enjoy good professional qualification and have profound understanding of watch industry. In addition, the Company has
established long term and stable enterprise-school cooperative relationship with various famous colleges and universities
in China. The Company is able to continuously and steadily obtain a great number of high quality professionals and infuse
new blood for the Company's development. The Company has continued to hold the honorable title of “Yearly Best
Employer”granted by Internal Association of Human Resources and CHINACHR.COM successively for 12 years.
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Section 4 Discussion and Analysis of the Management
I. General
In the first half of 2019, the domestic economy still faced a quite high downward pressure due to the complexity of the
external political and economic environment and depressed consumption, and the watch industry was also confronted
with big growth pressure. During the reporting period, facing the severe market pressure, the Company seized the
opportunity of consumption upgrading, continued to promote upgrading of brand improvement and better customer
services, further strengthened the refined management and professional operation capabilities; the Company still
achieved steady growth in operating performance, and continuous improvement of the operational efficiency. In the first
half of 2019, the Company realized revenue amounting to CNY 1,785.036 million with year-on-year growth of 5.26% and
realized total profit amounting to CNY 164.1106 million with a year-on-year growth of 12.53%.
During the reporting period, the Company carried out the following key work.
I. Continuing to carry forward “FIYTA” Brand upgrading and operation efficiency improvement
During the reporting period, the Company took the customers’ demand as the origin and continued to carry forward
“FIYTA” Brand upgrading centering on the operation work, including product, channel, marketing, etc. During the first half
of 2019, “FIYTA” Brand continued to enhance the professional watch-making spirit and the independent aesthetic design
brand conception, launched in succession a number of new products, including the Master Series DUNHUANG Themed
wristwatches, MACH Series “J-20” jointly limited wristwatch and “Heartstrings” series wristwatches, etc. and achieved
breakthrough in application of new materials, such as Damascus steel, Grade 5 titanium, etc.; continued to reinforce
improvement of whole-channel operation ability, promoted off-line channel structure optimization and identity upgrading;
promoted adjustment of e-commerce operation pattern, quickened on-line business development; continued to participate
in such important activities of the industry, including Baselworld 2019, Watch & Clock Fair China, China Brand Day, etc.
and improved the brand identity and industry influence, additionally appointed “Feng Shaofeng” as brand spokesman and
increased the interaction of the brand, consumers and new media. At the same time, the Company spared no efforts to
improve the efficiency of brand business operations. In the first half of 2019, the Company achieved positive results in its
brand business in terms of product quality, inventory turnover rate, cost control, channel operation quality, etc.
II. Continuing to carry forward retail service network optimization and customer service improvement
During the reporting period, although the overall watch market was under pressure, yet the medium- and high-end brand
watches with unit price exceeding CNY 10,000 were still favored by more consumers and a high growth rate and a
favorable trend were achieved. Harmony World Watches retail services grasped the growth opportunity of mid-to-high-end
watch brands, strengthened resource integration and operation improvement, continued to strengthen cooperation with
international brands and mid-to-high-end retail channels, promoted brand upgrading and channel upgrading, and
continuously increased customer unit prices; at the same time, continued to obtain international on-line watch brand
authorization, newly set up Tissot and Mido JD franchise houses, Mido Tmall franchise house, and enriched on-line watch
retail service network. During the reporting period, Harmony World Watches Retail Service continued to deepen the
improvement of customer service segmentation, accelerated the promotion of smart retail projects, and continued to
promote the business development of technical services.
III. Insisting on Innovation Development and Maintaining Quick Development of New Businesses
During the reporting period, under the macro background of industrial upgrading and intelligent manufacturing, the
Company continued to promote the rapid growth of precision manufacturing business by vigorously developing markets
such as laser devices and electronic circuits, relying on national high-tech enterprises and more mature precision
manufacturing industry bases. In the first half of 2019, revenue from precision manufacturing business increased by 41%
year-on-year. At the same time, the Company continued to accelerate the layout of smart wear business. In the first half of
2019, the Company continued to integrate resources for its "Jeep" brand smart watches, deepened technical cooperation,
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
and quickly deployed serialized iterative products, and continued to maintain a good sales situation for its smart watches.
IV. Implementing the “Repurchase” Program and Improving the Value for the Shareholders
During the reporting period, the Company continued to increase its interaction with the capital market in multiple
dimensions, convey the intrinsic value of the Company, promoted the annual distribution of equity, and continued to keep
high rate of distribution to investors. The accumulative cash dividend distributed took 151.39% of the annual average net
profit in the past three years. At the same time, in order to boost confidence in the capital market and realized
maximization of the value for shareholders, based on the confidence in the Company's future development prospects and
recognition of the Company's value, the Company initiated the repurchase of some domestically listed foreign shares (B
shares) in April 2019. In the first half of 2019, the Company successfully carried out the “repurchase” program and applied
approximately HK$16 million to repurchase 2.7 million shares of B shares through centralized bidding.
II. Analysis on the Main Business
Refer to “I. General” of “Discussion and Analysis of Business Conditions”
Movements of the Key Financial Items are summarized as follows:
In CNY
Same period of the previous Year-on-year
Reporting period Cause of the movement
year increase/decrease
Operating revenue 1,785,036,020.23. 1,695,891,432.72. 5.26% Inapplicable
Operating cost 1,051,504,075.22. 976,325,736.35. 7.70% Inapplicable
Sales costs 415,776,028.95. 422,113,041.69. -1.50% Inapplicable
Administrative expenses 116,352,835.42. 104,242,391.69. 11.62% Inapplicable
Financial expenses 16,238,965.89. 18,147,791.49. -10.52% Inapplicable
Income tax expenses 40,615,187.57. 33,463,799.72. 21.37% Inapplicable
R&D input 19,526,410.93. 21,285,926.02. -8.27% Inapplicable
Net cash flows arising from
159,014,650.37. 224,672,274.09. -29.22% Inapplicable
operating activities
It was mainly the big
year-on-year increase of the
amount of investment in
Net cash flow arising from
-89,214,047.63. -52,512,866.91. -69.89% fixed assets of which the
investment activities
main fixed asset was the
project of FIYTA Watch
Building.
It was mainly affected by
Net cash flow arising from
-8,308,417.60. -78,421,466.76. 89.41% the size of the
fund-raising activities
interest-bearing liabilities.
In addition to the influence
Net increase of cash and of the movements of net
61,693,492.45. 93,856,380.26. -34.27%
cash equivalents cash flow from investment
and fund-raising activities,
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
the year-on-year drop of net
cash flow from operational
activities was mainly to big
increase of payment for
purchase of goods in the
current year and at the
same time the year-on-year
decrease of the tax
payment.
Significant change in profit composition or profit sources during the reporting period.
Inapplicable
Composition of the principal business
In CNY
Year-on-year Year-on-year Year-on-year
increase/decrease increase/decrease increase/decrease
Operating revenue Operating cost Gross profit rate of operating of operating costs of gross profit rate
revenue over the over the previous over the previous
previous year year year
Based on sectors
Watches 1,677,850,539.71. 1,012,115,145.40. 39.68% 4.56% 7.24% -3.67%
Sophisticated
30,391,092.59. 22,479,136.85. 26.03% 41.00% 25.16% 56.15%
manufacture
Leases 67,373,825.03. 14,594,714.60. 78.34% 17.09% 27.02% -2.12%
Others 9,420,562.90. 2,315,078.37. 75.43% -21.85% -24.97% 1.37%
Based on products
Watch retail and
1,148,901,685.86. 856,306,726.29. 25.47% 12.43% 11.58% 2.28%
services
Watch brand
528,948,853.85. 155,808,419.11. 70.54% -9.26% -11.66% 1.15%
business
Sophisticated
30,391,092.59. 22,479,136.85. 26.03% 41.00% 25.16% 56.15%
manufacture
Leases 67,373,825.03. 14,594,714.60. 78.34% 17.09% 27.02% -2.12%
Others 9,420,562.90. 2,315,078.37. 75.43% -21.85% -24.97% 1.37%
Based on regions
South China 816,517,312.49. 469,110,834.06. 42.55% 7.43% 14.90% -8.07%
Northwest China 307,450,222.84. 182,162,158.51. 40.75% -0.53% -3.40% 4.52%
Northeast China 115,213,698.49. 65,074,970.17. 43.52% -5.71% -5.07% -0.87%
East China 241,568,771.25. 136,301,563.48. 43.58% 14.55% 13.60% 1.09%
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Northeast China 130,823,214.98. 91,567,691.46. 30.01% -7.04% -5.34% -4.01%
Southwest China 173,462,800.18. 107,286,857.54. 38.15% 13.41% 13.90% -0.70%
III. Analysis on Non-Principal Businesses
Inapplicable
IV. Assets and Liabilities
1. Significant Changes in Assets Composition
In CNY
End of the same period of the previous
End of the reporting period Proportion
year Note to significant
increased/d
Proportion in total Proportion in total changes
Amount Amount ecreased
assets assets
Monetary fund 226,521,552.42. 6.19% 281,009,271.58. 7.74% -1.55% Inapplicable
Accounts receivable 448,122,115.59. 12.24% 378,420,568.27. 10.43% 1.81% Inapplicable
Inventories 1,727,402,092.53. 47.19% 1,735,371,328.09. 47.82% -0.63% Inapplicable
Investment-oriented
370,467,221.69. 10.12% 348,258,775.18. 9.60% 0.52% Inapplicable
real estate
Long-term equity
46,412,373.21. 1.27% 43,972,531.47. 1.21% 0.06% Inapplicable
investment
Fixed assets 414,522,443.81. 11.32% 463,913,136.18. 12.78% -1.46% Inapplicable
Construction-in-progre
12,886,665.68. 0.35% 12,515,382.25. 0.34% 0.01% Inapplicable
ss
Short term loans 550,078,332.26. 15.03% 479,917,100.00. 13.22% 1.81% Inapplicable
Long-term borrowings 4,409,875.00. 0.12% 62,153,235.50. 1.71% -1.59% Inapplicable
2. Assets and liabilities measured based on fair value
Inapplicable
3. Restriction on rights in the assets ended the reporting period
A property owned by Switzerland based Montres Chouriet SA with net value of CNY 14,609,376.25 was used as a
collateral for the overseas long term loan amounting to CNY 4,762,665.
V. Analysis on Investment Situation
1. General
Inapplicable
2. Significant Equity Investment Acquired in the Reporting Period
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Inapplicable
3. Significant non-equity investment in process in the reporting period
In CNY
Cause of
Earnings
the failure
accumulati
Industry Accumulative in arriving
Is it an Capita vely
involved by Amount invested amount actually at the Date of Disclosure
Way of investment l Project Predicted realized by
Project name the during the invested by the end planned disclosure index (if
investment in fixed sourc progress earning the end of
investment reporting period of the reporting progress (if any) any)
assets? e the
project period and
reporting
predicted
period
earnings
FIYTA Watch Self-ra http://www
Manufactur Inapplicabl March 10,
Building Self-built Yes 845,539.68. 12,886,665.68. ised 100.00% 0.00. 0.00. .cninfo.co
e e 2017
supporting works fund m.cn/
Total -- -- -- 845,539.68. 12,886,665.68. -- -- 0.00. 0.00. -- -- --
Note: The 13th session of the Eighth Board of Directors reviewed and approved the proposal for increase of the
investment in the construction project of FIYTA Watch R&D and Manufacture Center by CNY 34.0509 million. For the
detail, refer to Announcement of the Resolution of the 13th Session of the Eighth Board of Directors 2017-003. Ended the
reporting period, the accumulative amount of investment in the project was CNY 12.8867 million.
4. Financial assets investment
(1) Portfolio investment
Inapplicable
(2) Investment in derivatives
Inapplicable
VI. Sales of Significant Assets and Equity
1. Sales of Significant Assets
Inapplicable
2. Sales of Significant Equity
Inapplicable
VII. Analysis on Principal Subsidiaries and Mutual Shareholding Companies
Particulars about the principal subsidiaries and mutual shareholding companies which may affect the Company’s net profit
by over 10%.
In CNY
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Operating
Company names Company types Main businesses Registered capital Total assets Net assets Operation profit Net profit
revenue
Purchase & sale
and repairing
Harmony Subsidiary service of 600,000,000.00. 1,515,431,759.32. 827,413,622.38. 1,133,190,847.40. 76,045,481.67. 56,365,795.02.
watches and
components
Design, R & D
and sales of
The Sales Co. Subsidiary watches and 450,000,000.00. 723,240,434.21. 428,379,872.88. 472,115,784.65. 35,508,212.17. 26,507,755.00.
components &
parts
Manufacture and
the Manufacture production of
Subsidiary 10,000,000.00. 199,980,604.47. 130,364,497.84. 153,878,112.47. 4,134,787.54. 3,546,602.25.
Co. watches and
components
Production and
machining of
the Technology
Subsidiary sophisticated 10,000,000.00. 94,563,187.08. 71,220,817.63. 60,984,287.88. 5,068,978.93. 4,366,586.65.
Co.
components and
parts
Trading of
the Hong Kong watches and
Subsidiary 137,737,520.00. 245,689,063.38. 167,165,669.55. 51,523,590.87. -719,413.83. -1,675,458.41.
Co. accessories and
investment
Design, R & D
and sales of
SHIYUEHUI Subsidiary watches and 5,000,000.00. 23,786,257.00. -5,545,352.53. 6,577,281.80. -1,251,382.15. -1,753,254.01.
components &
parts
Purchase & sale
of watches and
Hengdarui Subsidiary 51,000,000.00. 141,084,798.58. 40,686,466.62. 4,469,139.71. 832,719.83. 623,468.85.
components &
parts
Purchase & sale
of watches and
Harbin Co. Subsidiary 500,000.00. 372,386.95. 2,542,158.28. 4,004,580.34. -1,073,617.93. -1,090,253.15.
components &
parts
Design, R & D
Emile Chouriet and sales of
(Shenzhen) Subsidiary watches and 41,355,200.00. 118,143,314.55. 59,961,106.60. 38,513,285.69. -3,855,800.00. -2,904,931.00.
Limited components &
parts
Production and
Shanghai Watch Mutual shareholding sales of watches
15,350,000.00. 124,205,651.35. 111,158,121.40. 57,039,155.07. 8,098,631.62. 6,125,240.23.
Industry Co., Ltd. company and components
& parts
Acquisition and disposal of subsidiaries in the reporting period
Inapplicable
Note to the principal mutual shareholding companies
Inapplicable
VIII. Structurized Entities Controlled by the Company
Inapplicable
IX. Prediction of the Performances from January to September, 2019
Inapplicable
X. Risks Possibly to be Confronted with
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
1.Risk from the fluctuation of the macro-economy and the countermeasures
As a timepiece product with aesthetic, fashion characteristics and cultural connotations, watches are high-end quality
consumer products, are quite significantly affected by the fluctuation of the macro economy. At present, the domestic
macroeconomic instability factors are increasing, and the Company's performance may possibly fluctuate. The Company
shall continue to strengthen the unique business layout of the industry - “watch brand management + watch retail service”,
actively foster the development of new growth momentum while continuing to enhance business management capability,
and strive to achieve steady growth in business performance.
2. Risk from the intensified industry competition and the countermeasures
Thanks to the increase in disposable income of domestic residents, high-quality consumer demand continues to heat up,
and the watch industry has received more attention as a typical representative of high-quality consumer goods. At this
stage, more domestic and foreign brands are entering the Chinese watch consumption market. At the same time, smart
watches that stack technologies such as Internet of Things, artificial intelligence, and communication are also active. The
competition in the watch industry is intensifying, and the original competitive landscape faces more challenges. The
Company shall continue to promote multi-brand community construction and omni-channel network construction, aiming
at the individual needs of different consumer groups, deepen the development opportunity of market segments, and
accelerate development of the new business of smart wears.
3. Risk from the brand building the countermeasures
Brand-building is a continuous and systematic project that needs to be adhered to and continuously invested. Due to
fluctuation in business performance, intensified market competition and increased personalized consumer demand, the
Company shall be confronted with more challenges in brand-building with FIYTA as the core. The Company shall take the
customers’ requirements as the guide, adhere to the brand spirit, integrate innovative elements, and continue to invest in
products, channels, marketing and brand team , and strive to build various brands with FIYTA as the core into make the
most popular segments of the brands with “FIYTA” as the core into main brands most welcome by the consumers in the
segmented field.
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Section 5 Significant Events
I. General Meeting and Extraordinary General Meetings
1. General Meetings
Proportion of attendance of
Sessions Meeting type Meeting date Date of disclosure Disclosure index
the investors
2019 1st Extraordinary Extraordinary General
40.01% January 11, 2019 January 12, 2019 http://www.cninfo.com.cn/
General Meeting Meeting
2019 2nd Extraordinary Extraordinary General
37.40% April 23, 2019 April 24, 2019 http://www.cninfo.com.cn/
General Meeting Meeting
2018 Annual general
Annual general meeting 38.22% June 19, 2019 June 20, 2019 http://www.cninfo.com.cn/
meeting
2. Extraordinary general meeting requested for holding by the preferred shareholders with the voting power recovered.
Inapplicable
II. Profit Distribution and Conversion of Capital Reserve into Share Capital in the Reporting Period
Inapplicable
III. Commitments finished in implementation by the Company's actual controller, shareholders, related parties,
acquirer, the Company, etc. in the reporting period and commitments unfinished in implementation at the end of
the reporting period
Inapplicable
IV. Engagement/Disengagement of CPAs
Has the financial resport to the Semi-Annual Report been audited
No
V. Explanation of the Board of Directors and the Supervisory Committee on the Qualified Auditors' Report for the
reporting period issued by the CPAs
Inapplicable
VI. Explanation of the Board of Directors on the Qualified Auditors' Report for the previous year issued by the
CPAs
Inapplicable
VII. Matters concerning Bankruptcy Reorganization
Inapplicable
VIII. Lawsuits
Inapplicable
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
IX. Penalty and Rectification
Inapplicable
X. Integrity of the Company, its Controlling Shareholder and Actual Controller
Inapplicable
XI. Implementation of the Company’s Equity Incentive Plan, Employee Stock Ownership Plan or other Employee
Incentive Measures
The 3rd session of the Ninth Board of Directors and 2019 1st Extraordinary General Meeting held respectively on
November 12, 2018 and January 11, 2019 decided to start 2018 A-Share Restricted Stock Incentive Program (Phase I),
which was later on reviewed and approved at the 5th session of the Ninth Board of Directors held on January 11, 2019,
and the Company eventually granted 4.224 million restricted A-shares to 128 persons eligible for the incentive. For the
detail, refer to the relevant announcement disclosed in the Securities Times,Hong Kong Commercial Daily and
www.cninfo.com.cn on January 12, 2019. This part of A-share restricted shares was all granted and registered for listing
by January 30, 2019.
XII. Significant Related Transactions
1. Related Transactions Related with Day-to-Day Operations
Inapplicable
2. Related transactions concerning acquisition and sales of assets or equity
Inapplicable
3. Related transactions concerning joint investment in foreign countries
Inapplicable
4. Current Associated Rights of Credit and Liabilities
Does there exist non-operating current associated rights of credit and liabilities
No
5. Other Significant Related Transactions
The 6th session of the Ninth Board of Directors held on March 13, 2019 and 2018 Annual General Meeting held on June
19, 2019 approved the Proposal on Prediction of Regular Related Transactions in 2019. For the detail, refer to the
Announcement on the Resolution of the 6th Session of the Ninth Board of Directors No. 2019-012, the Announcement on
the Resolution of 2018 Annual General Meeting No. 2019-036 and the Announcement on the Prediction of the Regular
Related Transactions in 2019 No. 2019-014. During the reporting period, the cumulative transaction amount of the
Company's related transactions related to its daily operations was within the expected range of the year.
Inquiry on the website for disclosing the provisional report concerning significant related transactions
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Description of the provisional announcements Date of disclosure Disclosure website
Announcement on the Resolution of the 6th Session of the
March 15, 2019 www.cninfo.com.cn
Ninth Board of Directors, 2019-012
Announcement of the Prediction of the Regular Related
March 15, 2019 www.cninfo.com.cn
Transactions in 2019, 2019-012
Announcement on the Resolution of 2018 Annual General
June 20, 2019 www.cninfo.com.cn
Meeting, 2019-036
XIII. The Company's Funds Occupied by its Controlling Shareholder or/and Related Parties for Non-operating
Purpose
Inapplicable
XIV. Important Contracts and Implementation
1. Custody, Contacting and Leases
(1) Custody
Inapplicable
(2) Contracting
Inapplicable
(3) Leases
Inapplicable
2. Significant Guarantees
(1) Guarantees
In CNY 10,000
Outward guarantees Offered by the Company and its Subsidiaries (excluding guarantee to the subsidiaries)
Date of the
Date of occurrence Guarantee to
announcement Actual amount of Implementati
Names of Guarantees Guarantee line (date of agreement Type of guarantee Guarantee period related
on the guarantee on status
execution) party?
guarantee line
Inapplicable
Total amount of outward guarantee Total amount of outward guarantee
0. 0.
approved in the report period (A1) actually incurred in the report period (A2)
Total amount of outward guarantee already Total ending balance of outward
approved at the end of the report period 0. guarantee at the end of the report period 0.
(A3) (A4)
Guarantee to the subsidiaries
Names of Guarantees Date of the Guarantee line Date of occurrence Actual amount of Type of guarantee Guarantee period Implementati Guarantee to
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
announcement (date of agreement guarantee on status related
on the execution) party?
guarantee line
March 10, Guarantee with
Harmony 20,000. December 30, 2018 8,000. 1 year No No
2018 joint responsibility
March 10, Guarantee with
the Hong Kong Co. 3,513. September 10, 2018 353. 1 year No No
2018 joint responsibility
the Hong Kong Co. March 10, Guarantee with
0. October 15, 2018 353. 1 year No No
2018 joint responsibility
the Hong Kong Co. March 10, Guarantee with
0. November 13, 2018 282. 1 year No No
2018 joint responsibility
the Hong Kong Co. March 15, Guarantee with
0. April 20, 2019 2,020. 1 year No No
2019 joint responsibility
Total amount of guarantee to the
Total guarantee quota to the subsidiaries
0. subsidiaries actually incurred in the 2,020.
approved in the reporting period (B1)
reporting period (B2)
Total guarantee quota to the subsidiaries Total balance of actual guarantee to the
approved at the end of the reporting period 23,513. subsidiaries at the end of the reporting 11,008.
(B3) period (B4)
Guarantee among the subsidiaries
Date of the
Date of occurrence Guarantee to
announcement Actual amount of Implementati
Names of Guarantees Guarantee line (date of agreement Type of guarantee Guarantee period related
on the guarantee on status
execution) party?
guarantee line
Inapplicable
Total amount of guarantee to the
Total guarantee quota to the subsidiaries
0. subsidiaries actually incurred in the 0.
approved in the reporting period (C1)
reporting period (C2)
Total guarantee quota to the subsidiaries Total balance of actual guarantee to the
approved at the end of the reporting period 0. subsidiaries at the end of the reporting 0.
(C3) period (C4)
Total amount of guarantees (i.e. Total of the previous three major items)
Total guarantee quota to the subsidiaries Total amount of outward guarantee
0. 2,020.
approved in the reporting period (A1) actually incurred in the report period (A2)
Total amount of guarantees already
Total ending balance of guarantees at
approved at the end of the report period 23,513. 11,008.
the end of the report period (A4)
(A3)
Proportion of the actual guarantees in the Company’s net assets (namely A4+B4 +
4.10%
C4)
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
in which
Amount of guarantees offered to the shareholders, actual controller and its related
0.
parties (D)
Amount of guarantee for liabilities directly or indirectly offered to the guarantees
0.
with the asset-liability ratio exceeding 70% (E)
Guarantee with total amount exceeding 50% of the net assets (F) 0.
Total amount of the aforesaid three guarantees (D+E+F) 0.
Note to the undue guarantee which may bring about joint responsibility for
Inapplicable
discharging (if any)
Note to the outward guarantee against the established procedures (if any) Inapplicable
Description of the guarantee with complex method
Inapplicable
(2) Outward guarantee against regulations
Inapplicable
3. Other Important Contracts
Inapplicable
XV. Social Responsibilities
1. Significant Issues concerning Environmental Protection
Does the Company or any of its subsidiaries belong to a key pollutant discharging unit as announced to the public by the
environmental protection authority?
Yes
Description of
Pollutant
Name of the the major Number of Distribution of
Way of Discharging Discharge Total discharge Total discharge
Company or its pollutants or discharging the discharging Over-discharging
discharging concentration Standards in volume volume verified
Subsidiary specific outlets outlets
Force
pollutant
At the port of
Shanghai Watch Nickel and Nickel ﹤0.01,
Intermittent and effluent Nickel:0.1;
Industry Co., chromium 1. chromium ﹤ 2640 tons/year 3960 tons/year None
interruption treatment chromium:0.3
Ltd. effluent 0.01
equipment
Construction and operation of the pollution prevention and control facilities
Shanghai Watch Co., Ltd. reconstructed the clean production facility in 2016 and added 2 sets of equipment in 2018 for
the purpose of ensuring discharging of nickel and chromium effluent to comply with the Emission Standard of Pollutants
for Electroplating during 2018. Up to now, the facility has been operating normally and its emission has never exceeded
the limit as specified by the standard. The Company's online monitoring terminal has been docked with the government
monitoring platform for timely testing. It complies with the standard in terms of emission factors.
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Environmental impact assessment on construction projects and other environmental protection administrative
licensing
In 2018 Yangpu District Environmental Protection Bureau of Shanghai organized and held the Clean Production Auditing
and Assessment Seminar of Shanghai Watch Co., Ltd. where the company's clean production work was assessed,
audited and approved. Shanghai Watch Co., Ltd. has passed the emission certification conducted by Yangpu
Environmental Protection Bureau, Shanghai with the emission certification notice number: YANG HUAN JIAN HUAN JIAN
FEI HE ZI [2007] No. 05363. In accordance with the provisions of Shanghai Environmental Protection Bureau, the
Company applied for the pollutant discharging licence before the end of 2019. At present, the Company is making the
relevant preparation work for application for the pollutant discharging licence.
Contingency Plan for Emergent Environmental Incidents
Shanghai Watch Co., Ltd. prepared the Emergency Response Plan against Emergent Environmental Incidents and
regularly organizes training and exercise every year. The aforesaid plan has been approved and filed for record by
Yangpu District Environmental Protection Bureau of Shanghai and has been published on the Environmental Information
Disclosure Platform of Enterprises and Institutions of Shanghai.
Environment Self-Monitoring Program
Yangpu District Environmental Protection Bureau of Shanghai conducts supervision once every quarter. The company
entrusts Shanghai Light Industry Environment Protection and Pressure Vessel Monitoring General Station, a competent
independent agent, to conduct the monitoring every year. The company is itself equipped with monitoring instruments and
conducts self-monitoring at least 4 times every month.
Other environment information necessary to be disclosed
The company has disclosed the concerned information on the Environmental Information Disclosure Platform of
Enterprises and Institutions of Shanghai according to the requirements of the local environmental protection authorities.
Website name: http://xxgk.eic.sh.cn.
Other information in connection with the environmental protection
None
2. Implementation of the social responsibility of precise poverty relief
During the reporting period of half a year, the Company had neither precise poverty relief work nor follow-up precise
poverty relief plan to be carried out.
XVI. Notes to Other Significant Events
1. Amendment of the Articles of Association
The 6th Session of the Ninth Board of Directors held on March 13, 2019 , the 9th Session of the Ninth Board of Directors
held on June 6, 2019 and 2018 Annual General Meeting held on June 19, 2019 reviewed and approved the Proposal on
Amendment of the Articles of Association. For the detail, refer to the Announcement on the Resolution of the 6th Session
of the Ninth Board of Directors,2019-012, the 9th Session of the Ninth Board of Directors,2019-032 and the
Announcement on the Resolution of 2018 Annual General Meeting No. 2019-036 and the Proposal on Amendment of the
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Articles of Association disclosed on the Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn.
2. Matters concerning Repurchase of the Company’s Partial Domestically Listed Foreign Shares (B Shares)
The 7th session of the Ninth Board of Directors held on April 4, 2019 and 2019 2nd Extraordinary General Meeting held on
April 23, 2019, reviewed and approved the “Proposal for the Repurchase of Partial Domestically Listed Foreign Shares in
the Company (B-shares), and subsequently the Company disclosed the repurchase report and published a series of
announcements on the progress in accordance with relevant regulations. For detail of the above, please refer to the
relevant announcements disclosed by the Company in the Securities Times, Hong Kong Commercial Daily and
www.cninfo.com.cn.
3. Election for the Staff Representative Supervisor
2019 1st Staff Representative Congress held on April 12, 2019 reviewed and approved the Proposal on Election of the
Staff Representative Supervisor of the Ninth Supervisory Committee; Mr. Fang Jiasheng was elected the staff
representative supervisor the Ninth Supervisory Committee. For the detail, refer to the Announcement on the Resolution
of the Staff Representative Congress No. 2019-021 disclosed on the Securities Times, Hong Kong Commercial Daily and
www.cninfo.com.cn.
XVII. Significant Events of the Company's Subsidiaries
Inapplicable
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Section 6 Change of Shares and Particulars about Shareholders
I. Change of Shares
1. Change of Shares
In shares
Before the change Increase / Decrease (+/ -) After the change
Shares
Quantity Proportion New issuing Bonus shares converted Others Sub-total Quantity Proportion
from reserve
I. Restricted shares 380,513. 0.09% 4,224,000. 4,224,000. 4,604,513. 1.04%
1. Shares held by the state 0. 0.00% 0. 0. 0. 0.00%
2. State corporate shares 0. 0.00% 0. 0. 0. 0.00%
3. Other domestic shares 380,513. 0.09% 4,224,000. 4,224,000. 4,604,513. 1.04%
Including: Domestic corporate
0. 0.00% 0. 0. 0. 0.00%
shares
Shares held by domestic
380,513. 0.09% 4,224,000. 4,224,000. 4,604,513. 1.04%
natural persons
4、Foreign invested shares 0. 0.00% 0. 0. 0. 0.00%
Including: Foreign corporate shares 0. 0.00% 0. 0. 0. 0.00%
Shares held by foreign
0. 0.00% 0. 0. 0. 0.00%
natural persons
II. Unrestricted shares 438,364,368. 99.91% 0. 0. 438,364,368. 98.96%
1. CNY ordinary shares 356,716,368. 81.30% 0. 0. 356,716,368. 80.53%
2. Foreign invested shares listed in
81,648,000. 18.61% 0. 0. 81,648,000. 18.43%
Mainland China
3. Foreign invested shares listed
0. 0.00% 0. 0. 0. 0.00%
abroad
4. Others 0. 0.00% 0. 0. 0. 0.00%
III. Total shares 438,744,881. 100.00% 4,224,000. 4,224,000. 442,968,881. 100.00%
Cause of the change of shares
During the reporting period, the Company finished awarding the A-share restrictive stock as specified in its stock incentive
program (Phase I) and registering the same for listing. Upon completion of the share awarding, the Company's total
capital stock increased to 442,968,881 shares.
Approval of Change of the Shares
The 3rd session of the Ninth Board of Directors and 2019 1st Extraordinary General Meeting held respectively on
November 12, 2018 and January 11, 2019 decided to start 2018 A-Share Restrictive Stock Incentive Program (Phase I).
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
The 5th session of the Ninth Board of Directors held on January 11, 2019 decided to award 4.224 million A-share
restricted shares to 128 persons eligible for the incentive.
Transfer of the Shares Changed
The persons eligible for the incentive in the Company's 2018 A-Share Restrictive Stock Incentive Program (Phase I) have
handled the procedures for registration with China Securities Depository and Clearing Corporation Limited (CSDC)
Shenzhen Office.
The 6th session of the Ninth Board of Directors held on March 13, 2019 reviewed and approved the Proposal for
Amendment of the Articles of Association, according to which the Company’s registered capital has been changed from
CNY438,744,881 into CNY 442,968,881.
Progress of implementation of the stock repurchase
The 7th session of the Ninth Board of Directors held on April 4, 2019 and 2019 2nd Extraordinary General Meeting held on
April 23, 2019, reviewed and approved the “Proposal for the Repurchase of Partial Domestically Listed Foreign Shares in
the Company (B-shares), and subsequently the Company disclosed the repurchase report and published a series of
announcements on the progress in accordance with relevant regulations. For detail of the above, please refer to the
relevant announcements disclosed by the Company in the Securities Times, Hong Kong Commercial Daily and
www.cninfo.com.cn.
As of the end of the reporting period, the Company repurchased 2,700,000 shares in the Company by way of centralized
bidding, accounting for 0.61% of the Company's total capital stock; the highest transaction price of the repurchased
shares was HK$6.06 per share, and the lowest transaction price was HK$5.85/shares, the total amount paid has been
HK$16,228,291.65 (excluding transaction fees such as stamp duty, commission, etc.) The Company’s repurchase of the
shares was in compliance with the relevant laws and regulations and in line with the Company's established repurchase
program.
Progress of implementation of reduction of the holding size of the shares repurchased by centralized bidding
Inapplicable
Influence of the change of the shares upon such financial indicators as the basic EPS and diluted EPS, net asset value
per share attributable to the common stockholders in the past year and the latest period
During the reporting period, the Company finished awarding the 2018 A-share Restrictive Stock Incentive Program (Phase
I); and the earnings per share and return on equity at the end of the reporting period were calculated by weighted average.
Net return on equity, weighted average (%) Earnings per share
Basic earnings per share (CNY/share) Diluted earnings per share (CNY/share)
The first half year of The first half year of 2018 The first half year of 2019 The first half year of 2018 The first half year of 2019 The first half year of 2018
2019
4.69% 4.45% 0.2788 0.2561 0.2788 0.2561
Other information the Company considers necessary or required by the securities regulatory authority to be disclosed.
Inapplicable
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
2. Change of the Restricted Shares
In shares
Number of restricted
Number of restricted Number of restricted Number of restricted
Names of the shares at the Date of relieving the
shares relieved in the shares increased in shares at the end of Cause of restriction
Shareholders beginning of the restriction
reporting period the reporting period the reporting period
reporting period
To be unlocked subject to
the conditions of the
Locked shares for senior
locked shares for senior
Huang executives and restricted shares
60,000 0 100,000 160,000 executives and the
Yongfeng as the granted locked shares
measures for the
Company’s equity
incentive management
To be unlocked subject to
the conditions of the
Locked shares for senior locked shares for senior
Chen Libin 60,000 0 100,000 160,000 executives and restricted shares executives and the
as the granted locked shares measures for the
Company’s equity
incentive management
To be unlocked subject to
Locked shares for senior the conditions of the
Lu Bingqiang 72,233 0 0 72,233
executives locked shares for senior
executives
To be unlocked subject to
the conditions of the
Locked shares for senior locked shares for senior
Lu Wanjun 37,500 0 80,000 117,500 executives and restricted shares executives and the
as the granted locked shares measures for the
Company’s equity
incentive management
To be unlocked subject to
the conditions of the
Locked shares for senior locked shares for senior
Liu Xiaoming 37,500 0 80,000 117,500 executives and restricted shares executives and the
as the granted locked shares measures for the
Company’s equity
incentive management
Pan Bo 37,500 0 80,000 117,500 Locked shares for senior To be unlocked subject to
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
executives and restricted shares the conditions of the
as the granted locked shares locked shares for senior
executives and the
measures for the
Company’s equity
incentive management
To be unlocked subject to
the conditions of the
Locked shares for senior locked shares for senior
Li Ming 37,530 0 80,000 117,530 executives and restricted shares executives and the
as the granted locked shares measures for the
Company’s equity
incentive management
To be unlocked subject to
the conditions of the
Locked shares for senior locked shares for senior
Chen Zhuo 38,250 0 80,000 118,250 executives and restricted shares executives and the
as the granted locked shares measures for the
Company’s equity
incentive management
To be unlocked subject to
the conditions of the
Locked shares for senior locked shares for senior
Sheng Li 0 0 60,000 60,000 executives and restricted shares executives and the
as the granted locked shares measures for the
Company’s equity
incentive management
To be unlocked subject to
the conditions of the
Locked shares for senior locked shares for senior
Bao Xianyong 0 0 60,000 60,000 executives and restricted shares executives and the
as the granted locked shares measures for the
Company’s equity
incentive management
To be unlocked subject to
Other persons
the conditions of the
eligible for the
Locked shares for senior locked shares for senior
incentive of
0 0 3,504,000 3,504,000 executives and restricted shares executives and the
A-share
as the granted locked shares measures for the
restrictive stock
Company’s equity
(119 persons)
incentive management
Total 380,513 0 4,224,000 4,604,513 -- --
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
II. Issuing and Listing
Description of the
Quantity approved
stock and its Issuing price (or Expiry date of
Issuing date Issuing quantity Date of listing for listing for Disclosure index Date of disclosure
derivative interest rate) trading
trading
securities
Stock category
A-share ordinary January 11, January 30, www.cninfo.com.c January 29,
4.40. 4,224,000. - -
shares 2019 2019 n 2019
Description of securities issuing during the reporting period
The 3rd session of the Ninth Board of Directors held on November 12, 2018 and 2019 1st Extraordinary General Meeting
held on January 11, 2019 decided to start 2018 A-Share Restrictive Stock Incentive Program (Phase I), which was later on
reviewed and approved at the 5th session of the Ninth Board of Directors held on January 11, 2019, and the Company
eventually granted 4.224 million restrictive A-shares to 128 persons eligible for the incentive。 The granting date of this
part of the restrictive stock was January 30, 2019; on January 30, 3019, the granting was completed and the stock was
registered for listing. For the detail, refer to the Announcement on the Completion of Granting the Restrictive A-Shares
according to the Incensive Program (Phase I) No. 2019-009 disclosed in the Securities Times, Hong Kong Commercial
Daily and www.cninfo.com.
III. Number of Shareholders and Shareholding
In shares
Total preference shareholders with the voting
Total common shareholders at the end of
33,105. power recovered at the end of the reporting 0.
the reporting period
period (if any) (Refer to Note 8)
Shares held by the common shareholders holding over 5% shares or the top 10 common shareholders
Number of Pledging or freezing
common Number of Number of the
Increase/decrease
Names of the Nature of the Shareholding shares held the restricted unrestricted
in the reporting Status of the
Shareholders shareholder proportion at the end of common common shares Quantity
period shares
the reporting shares held held
period
AVIC International
State corporate 36.79% 162,977,327. 0. 0. 162,977,327.
Holding Limited
Domestic natural
#Yang Zugui 3.32% 14,709,417. 1,600,500. 0. 14,709,417.
persons
National Social
State-owned legal
Security Fund 114 1.92% 8,483,232. -1,174,512. 0. 8,483,232.
person
Portfolio
BANK OF Domestic 0.62% 2,741,301. 209,100. 0. 2,741,301.
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
COMMUNICATIONS non-state-owned
CO.,LTD - corporate
CHANGXIN
QUANTIFIED
PIONEER EQUITY
FUND
Shenzhen Heli Domestic
Fengyuan Commerce non-state-owned 0.61% 2,704,000. 0. 0. 2,704,000.
& Trade Co., Ltd. corporate
Xizang Investment State-owned legal
0.51% 2,271,251. -2,705,300. 0. 2,271,251.
Co., Ltd. person
Domestic natural
Li Changqiang 0.32% 1,398,000. 1,398,000. 0. 1,398,000.
persons
Domestic natural
# Chen Chu 0.31% 1,365,219. 867,924. 0. 1,365,219.
persons
Domestic natural
Zeng Yanhong 0.30% 1,350,000. 250,000. 0. 1,350,000.
persons
Vanguard Investment
Australia Ltd. -
Domestic
Vanguard Emerging
non-state-owned 0.27% 1,190,485. 0. 0. 1,190,485.
Market Stock Index
corporate
Fund (Stock
Exchange)
About the fact that a strategic investor or
ordinary corporate became one of the top ten
Inapplicable
common shareholders due to placement of new
shares (if any) (Refer to Note 3)
Explanation on associated relationship or
Inapplicable
consistent action of the above shareholders
Shares held by top 10 shareholders of unrestricted shares
Share type
Names of the Shareholders Quantity of unrestricted shares held at the end of the reporting period
Share type Quantity
AVIC International Holding Limited 162,977,327. CNY ordinary shares 162,977,327.
#Yang Zugui 14,709,417. CNY ordinary shares 14,709,417.
National Social Security Fund 114 Portfolio 8,483,232. CNY ordinary shares 8,483,232.
BANK OF COMMUNICATIONS CO.,LTD -
CHANGXIN QUANTIFIED PIONEER EQUITY 2,741,301. CNY ordinary shares 2,741,301.
FUND
Shenzhen Heli Fengyuan Commerce & Trade 2,704,000. CNY ordinary shares 2,704,000.
29
FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Co., Ltd.
Xizang Investment Co., Ltd. 2,271,251. CNY ordinary shares 2,271,251.
Li Changqiang 1,398,000. CNY ordinary shares 1,398,000.
# Chen Chu 1,365,219. CNY ordinary shares 1,365,219.
Zeng Yanhong 1,350,000. CNY ordinary shares 1,350,000.
Vanguard Investment Australia Ltd. - Vanguard
Emerging Market Stock Index Fund (Stock 1,190,485. CNY ordinary shares 1,190,485.
Exchange)
Note to the associated relationship or
consistent action among the top 10
shareholders of non-restricted common shares
Inapplicable
and that between the top 10 shareholders of
non-restricted common shares and top 10
common shareholders.
Note to the top 10 common shareholders
involved in margin financing & securities lending Inapplicable
(if any) (Refer to Note 4)
Did the top ten common shareholders or top ten shareholders of unrestricted common shares conduct contractual
repurchase during the reporting period?
No
IV. Change of the Controlling Shareholder or Actual Controller
Inapplicable
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Section 7 About the Preferred Shares
Inapplicable
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Section 8 Directors, Supervisors, Senior Executives and Employees
I. Change in Shares Held by Directors, Supervisors and Senior Executives
Number of
Number of Number of Number of
Shareholding Shareholding restricted shares Number of restricted
shares held at shares held at restricted shares
Office increased in decreased in granted at the shares granted at the
Name Title the beginning end of the granted during the
Status the reporting the reporting beginning of the end of the reporting
of the reporting reporting reporting period
period (shares) period (shares) reporting period period (shares)
period (shares) period (shares) (shares)
(shares)
Huang
Chairman In office 80,000. 0. 0. 80,000. 0. 100,000. 100,000.
Yongfeng
Wang
Director In office 0. 0. 0. 0. 0. 0. 0.
Mingchuan
Fu Debin Director In office 0. 0. 0. 0. 0. 0. 0.
Xiao Zhanglin Director In office 0. 0. 0. 0. 0. 0. 0.
Wang Bo Director In office 0. 0. 0. 0. 0. 0. 0.
Chen Libin Director & GM In office 80,000. 0. 0. 80,000. 0. 100,000. 100,000.
Wang Jianxin Independent director In office 0. 0. 0. 0. 0. 0. 0.
Zhong
Independent director In office 0. 0. 0. 0. 0. 0. 0.
Hongming
Tang Xiaofei Independent director In office 0. 0. 0. 0. 0. 0. 0.
Chairman of the
Wang Baoying Supervisory In office 0. 0. 0. 0. 0. 0. 0.
Committee
Sheng Qing Supervisor In office 0. 0. 0. 0. 0. 0. 0.
Fang Jiasheng Supervisor In office 0. 0. 0. 0. 0. 0. 0.
Lu Bingqiang Deputy GM In office 96,311. 0. 0. 96,311. 0. 0. 0.
Deputy GM and
Lu Wanjun Secretary of the In office 50,000. 0. 0. 50,000. 0. 80,000. 80,000.
Board
Liu Xiaoming Deputy GM In office 50,000. 0. 0. 50,000. 0. 80,000. 80,000.
Pan Bo Deputy GM In office 50,000. 0. 0. 50,000. 0. 80,000. 80,000.
Li Ming Deputy GM In office 50,040. 0. 0. 50,040. 0. 80,000. 80,000.
Chen Zhuo Chief Accountant In office 51,000. 0. 0. 51,000. 0. 80,000. 80,000.
Zou Zhixiang Supervisor Retired 0. 0. 0. 0. 0. 0. 0.
Total -- -- 507,351. 0. 0. 507,351. 0. 600,000. 600,000.
II. Personnel Change in Directors, Supervisors and Senior Executives
32
FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Name Office Taken Type Date: Cause
Fang Elected a staff representative supervisor at 2019 1st Staff Representative
Supervisor Elected April 12, 2019
Jiasheng Congress.
Zou Decided to resign the office of staff representative supervisor of the Ninth
Supervisor Retired April 10, 2019
Zhixiang Supervisory Committee due to personal reason.
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Section 9 Corporate Bonds
Did there exist any company bonds which were issued to the public and listed with the stock exchange for trading and was
due by the date when the Semi-annual Report was approved for issuing or failed to be fully cashed by the end of the
reporting period?
No
34
FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Section 10 Financial Report
I. Auditors’ Report
Has the semi-annual report been audited
No
II. Financial Statements
The currency applied in the financial notes and statements is Renminbi (CNY)
1. Consolidated Balance Sheet
Prepared by FIYTA HOLDINGS LTD.
In CNY
Items June 30, 2019 December 31, 2018
Current assets:
Monetary capital 226,521,552.42 164,828,059.97
Settlement reserve
Inter-bank lending
Transactional financial assets
Financial assets which are measured
at their fair values and the variation of which
is counted to the profit and loss of the
current period
Derivative financial assets
Notes receivable 9,940,991.52 7,051,846.85
Accounts receivable 448,122,115.59 370,545,656.61
Financing with accounts receivable
Advance payment 25,833,366.51 13,666,816.33
Receivable premium
Reinsurance accounts receivable
Reserve for reinsurance contract
receivable
Other receivables 62,591,073.25 45,870,582.26
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for sale
Inventories 1,727,402,092.53 1,782,306,301.70
Contract assets
35
FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Held-for-sale assets
Non-current assets due within a year
Other current assets 46,066,469.94 73,703,312.24
Total current assets 2,546,477,661.76 2,457,972,575.96
Non-current assets:
Loan issuing and advance in cash
Equity investment
Available-for-sale financial assets 85,000.00
Other equity investment
Held-to-due investments
Long term accounts receivable
Long-term equity investment 46,412,373.21 44,881,063.15
Investment in other equity instruments 85,000.00
Other non-current financial assets
Investment-oriented real estate 370,467,221.69 377,319,433.03
Fixed assets 414,522,443.81 425,649,562.85
Construction-in-progress 12,886,665.68 12,041,126.00
Productive biological asset
Oil and gas assets
Use right assets
Intangible assets 41,477,871.11 43,545,477.61
Development expenses
Goodwill
Long-term expenses to be apportioned 137,535,709.85 128,572,545.15
Deferred income tax asset 83,293,488.15 100,675,706.09
Other non-current assets 7,297,788.01 8,949,160.42
Total non-current assets 1,113,978,561.51 1,141,719,074.30
Total assets 3,660,456,223.27 3,599,691,650.26
Current liabilities:
Short term borrowings 550,078,332.26 547,118,452.97
Borrowings from central bank
Loans from other banks
Transactional financial liabilities
Financial liabilities which are measured
at their fair values and the variation of which
36
FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
is counted to the current profit and loss
Derivative financial liabilities
Notes payable
Accounts payable 227,682,547.55 259,913,612.34
Advance Receipts 18,022,460.66 16,459,445.00
Money from sale of the repurchased
financial assets
Deposits taking and interbank
placement
Acting trading securities
Income from securities underwriting on
commission
Payroll payable to the employees 48,582,058.35 69,779,037.83
Taxes payable 32,037,984.80 55,923,171.92
Other payables 92,313,874.56 71,819,930.30
Including: interest payable 740,561.84 772,351.26
Dividends payable
Service charge and commission
payable
Payable reinsurance
Contract liabilities
Held-for-sale liabilities
Non-current liabilities due within a year 352,790.00 347,470.00
Other current liabilities
Total current liabilities 969,070,048.18 1,021,361,120.36
Non-current liabilities:
Reserve for insurance contract
Long-term borrowings 4,409,875.00 4,517,110.00
Bonds payable
Including: preferred shares
Perpetual bond
Lease liabilities
Long-term accounts payable
Long term payroll payable to the
employees
37
FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Estimated liabilities
Deferred income 3,672,855.36 3,672,855.36
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities 8,082,730.36 8,189,965.36
Total liabilities 977,152,778.54 1,029,551,085.72
Owner’s equity:
Capital stock 442,968,881.00 438,744,881.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital Reserve 1,079,051,841.53 1,062,455,644.22
Less: shares in stock 32,902,198.89
Other comprehensive income -3,692,732.58 -5,442,139.78
Special reserve
Surplus Reserve 223,015,793.80 223,015,793.80
Reserve against general risks
Retained earnings 974,856,064.56 851,360,603.66
Total owners’ equity attributable to the parent
2,683,297,649.42 2,570,134,782.90
company
Minority shareholders’ equity 5,795.31 5,781.64
Total owner’s equity 2,683,303,444.73 2,570,140,564.54
Total liabilities and owners’ equity 3,660,456,223.27 3,599,691,650.26
Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo
Person in charge of the Accounting Department: Tian Hui
2. Balance Sheet (Parent Company)
In CNY
Items June 30, 2019 December 31, 2018
Current assets:
Monetary capital 184,867,858.11 137,175,466.27
Transactional financial assets
Financial assets which are measured
at their fair values and the variation of which
38
FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
is counted to the profit and loss of the
current period
Derivative financial assets
Notes receivable
Accounts receivable 2,232,719.12 737,636.38
Financing with accounts receivable
Advance payment
Other receivables 802,334,152.26 870,739,378.37
Including: Interest receivable
Dividends receivable
Inventories
Contract assets
Held-for-sale assets
Non-current assets due within a year
Other current assets 11,816,267.04 10,081,272.94
Total current assets 1,001,250,996.53 1,018,733,753.96
Non-current assets:
Equity investment
Available-for-sale financial assets 85,000.00
Other equity investment
Held-to-due investments
Long term accounts receivable
Long-term equity investment 1,377,660,964.14 1,376,129,654.08
Investment in other equity instruments 85,000.00
Other non-current financial assets
Investment-oriented real estate 291,562,362.07 297,042,937.87
Fixed assets 290,346,866.97 297,517,472.81
Construction-in-progress 12,886,665.68 12,041,126.00
Productive biological asset
Oil and gas assets
Use right assets
Intangible assets 33,070,715.48 35,337,052.82
Development expenses
Goodwill
Long-term expenses to be apportioned 9,247,782.11 4,500,638.97
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Deferred income tax asset 969,058.32 952,857.33
Other non-current assets 2,486,782.05 4,493,971.35
Total non-current assets 2,018,316,196.82 2,028,100,711.23
Total assets 3,019,567,193.35 3,046,834,465.19
Current liabilities:
Short term borrowings 520,000,000.00 505,000,000.00
Transactional financial liabilities
Financial liabilities which are measured
at their fair values and the variation of which
is counted to the current profit and loss
Derivative financial liabilities
Notes payable
Accounts payable 26,696,117.76 52,324,191.98
Advance Receipts 3,252,081.05 1,636,520.02
Contract liabilities
Payroll payable to the employees 9,867,650.25 11,589,634.34
Taxes payable 3,611,483.28 943,919.26
Other payables 45,726,573.85 57,997,397.28
Including: interest payable 579,338.91 685,419.80
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within a year
Other current liabilities
Total current liabilities 609,153,906.19 629,491,662.88
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: preferred shares
Perpetual bond
Lease liabilities
Long-term accounts payable
Long term payroll payable to the
employees
Estimated liabilities
Deferred income 3,672,855.36 3,672,855.36
40
FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities 3,672,855.36 3,672,855.36
Total liabilities 612,826,761.55 633,164,518.24
Owner’s equity:
Capital stock 442,968,881.00 438,744,881.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital Reserve 1,084,707,382.63 1,068,111,185.32
Less: shares in stock 32,902,198.89
Other comprehensive income
Special reserve
Surplus Reserve 223,015,793.80 223,015,793.80
Retained earnings 688,950,573.26 683,798,086.83
Total owner’s equity 2,406,740,431.80 2,413,669,946.95
Total liabilities and owners’ equity 3,019,567,193.35 3,046,834,465.19
Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo
Person in charge of the Accounting Department: Tian Hui
3. Consolidated Profit Statement
In CNY
Items The first half year of 2019 The first half year of 2018
I. Turnover 1,785,036,020.23 1,695,891,432.72
Including: operating income 1,785,036,020.23 1,695,891,432.72
Interest income
Earned insurance premium
Service charge and commission income
II. Total operating costs 1,634,493,191.74 1,559,905,673.67
Including: Operating costs 1,051,504,075.22 976,325,736.35
Interest payment
Service charge and commission payment
Surrender Value
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Compensation expenses, net
Provision of reserve for insurance contract,
net
Payment of policy dividend
Reinsurance expenses
Taxes and surcharges 15,094,875.33 17,790,786.43
Sales costs 415,776,028.95 422,113,041.69
Administrative expenses 116,352,835.42 104,242,391.69
R & D expenditures 19,526,410.93 21,285,926.02
Financial expenses 16,238,965.89 18,147,791.49
Where: Interest cost 12,023,843.93 14,273,043.13
Interest income -908,850.92 -1,079,587.08
Plus: Other income 13,045,742.36 6,497,018.80
Investment income (loss is stated with “-”) 1,531,310.06 93,013.38
Including: return on investment in associate and joint
1,531,310.06 93,013.38
venture
Gain from the derecognition of the financial assets
measured at amortised cost (loss is stated with “-”)
Exchange income (loss stated with “-“)
Net exposure hedge income (loss stated with “-“)
Income from change of fair value (loss is stated with
“-”)
Loss from impairment of credit (loss is stated with “-”) -3,081,768.89 5,178,800.41
Loss from impairment of assets (loss is stated with “-”) 2,514,740.86 -1,765,800.30
Income from disposal of assets (loss is stated with “-“) -212,010.13 -54,407.16
III. Operating Profit (loss is stated with “-“) 164,340,842.75 145,934,384.18
Plus: Non-operating income 294,311.70 363,859.51
Less: Non-operating expenses 524,505.98 466,522.53
IV. Total profit (total loss is stated with “-”) 164,110,648.47 145,831,721.16
Less: Income tax expense 40,615,187.57 33,463,799.72
V. Net Profit (net loss is stated with “-“) 123,495,460.90 112,367,921.44
(I) Classification based on operation sustainability
1. Net Profit from sustainable operation (net loss is
123,495,460.90 112,367,921.44
stated with “-”)
2. Net Profit from termination of operation (net loss
is stated with “-”)
42
FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
(II) Classification by ownership
1. Net profit attributable to the parent company’s
123,495,460.90 112,367,921.44
owner
2. Minority shareholders’ gain/loss
VI. Net of other comprehensive income after tax 1,749,420.87 -1,392,954.99
Net of other comprehensive income after tax attributable
1,749,407.20 -1,392,919.75
to the parent company’s owner
(I) Other comprehensive income which cannot be
re-classified into gain and loss
1. Movement of the net liabilities and net assets
re-measured for setting the beneficial plan
2. Other comprehensive income which cannot be
converted into gain and loss based on the equity method
3. Movement of the fair value of the investment in other
equity instruments
4. Movement of the fair value of the Company’s own
credit risk
5. Others
(II) Other comprehensive income which shall be
1,749,407.20 -1,392,919.75
re-classified into gain and loss
1. Other comprehensive income which can be converted
into gain and loss based on the equity method
2. Movement of the fair value of the investment in other
debt instruments
3. Gain/loss from change in the fair value of the financial
assets available for sale
4. Amount of the reclassified financial assets counted to
the other comprehensive income
5. Gain/loss from which the held-to-maturity investment is
re-classified as available-for-sale financial assets
6. Provision for impairment of the credit of the other debt
investment
7. Reserve for cash flow hedge
8. Conversion difference in foreign currency statements 1,749,407.20 -1,392,919.75
9. Others
Net amount of other comprehensive income after tax
13.67 -35.24
attributable to minority shareholders
VII. Total comprehensive income 125,244,881.77 110,974,966.45
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Total comprehensive income attributable to the parent
125,244,868.10 110,975,001.69
company’s owner
Total comprehensive income attributable to minority
13.67 -35.24
shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.2788 0.2561
(II) Diluted earnings per share 0.2788 0.2561
Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo
Person in charge of the Accounting Department: Tian Hui
4. Statement of Profit, Parent Company
In CNY
Items The first half year of 2019 The first half year of 2018
I. Operating revenue 64,124,939.95 56,119,634.18
Less: Operating cost 11,807,925.90 9,578,544.70
Taxes and surcharges 2,257,018.92 2,206,362.07
Sales costs 582,036.03
Administrative expenses 39,783,149.16 31,314,977.66
R & D expenditures 9,146,589.64 10,322,178.15
Financial expenses 3,247,689.32 3,554,000.36
Where: Interest cost 4,007,526.54 4,234,698.63
Interest income -776,046.44 -710,762.21
Plus: Other income 7,743,695.89 1,598,000.00
Investment income (loss is stated with “-”) 1,531,310.06 93,013.38
Including: return on investment in associate and joint
1,531,310.06 93,013.38
venture
Gain from the derecognition of the financial assets
measured at amortised cost (loss is stated with “-”)
Net exposure hedge income (loss stated with “-“)
Income from change of fair value (loss is stated with “-”)
Loss from impairment of credit (loss is stated with “-”) 64,803.91
Loss from impairment of assets (loss is stated with “-”)
Income from disposal of assets (loss is stated with “-“) -2,074.20 -13,917.68
II. Operating Profit (loss is stated with “-“) 6,508,658.82 820,666.94
44
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Plus: Non-operating income 18,000.00 9,480.00
Less: Non-operating expenses 200,000.00 446,782.07
III. Total profit (total loss is stated with “-“) 6,326,658.82 383,364.87
Less: Income tax expense 1,174,172.39 -169,477.50
IV. Net Profit (net loss is stated with “-“) 5,152,486.43 552,842.37
(I) Net Profit from sustainable operation (net loss is stated with
5,152,486.43 552,842.37
“-”)
(II) Net Profit from termination of operation (net loss is stated
with “-”)
V. Net of other comprehensive income after tax
(I) Other comprehensive income which cannot be
re-classified into gain and loss
1. Movement of the net liabilities and net assets
re-measured for setting the beneficial plan
2. Other comprehensive income which cannot be
converted into gain and loss based on the equity method
3. Movement of the fair value of the investment in
other equity instruments
4. Movement of the fair value of the Company’s own
credit risk
5. Others
(II) Other comprehensive income which shall be
re-classified into gain and loss
1. Other comprehensive income which can be
converted into gain and loss based on the equity method
2. Movement of the fair value of the investment in
other debt instruments
3. Gain/loss from change in the fair value of the
financial assets available for sale
4. Amount of the reclassified financial assets counted
to the other comprehensive income
5. Gain/loss from which the held-to-maturity
investment is re-classified as available-for-sale financial assets
6. Provision for impairment of the credit of the other
debt investment
7. Reserve for cash flow hedge
8. Conversion difference in foreign currency
statements
45
FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
9. Others
VI. Total comprehensive income 5,152,486.43 552,842.37
VII. Earnings per share:
(I) Basic earnings per share 0.0116 0.0013
(II) Diluted earnings per share 0.0116 0.0013
Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo
Person in charge of the Accounting Department: Tian Hui
5. Consolidated Cash Flow Statement
In CNY
Items The first half year of 2019 The first half year of 2018
I. Cash flows arising from operating activities:
Cash received from sales of goods and supply of labor
1,913,555,960.34 1,905,278,291.59
service
Net increase of customers’ deposit and due from
banks
Net increase of borrowings from the central bank
Net increase of borrowings from other financial
institutions
Cash received from the premium of the original
insurance contract
Net cash received from the reinsurance business
Net increase of the reserve from policy holders and
investment
Cash received from interest, service charge and
commission
Net increase of loan from other banks
Net increase of fund from repurchase business
Net cash received from securities trading on
commission
Rebated taxes received 3,160,067.59 185,691.63
Other operation activity related cash receipts 40,976,127.91 25,022,648.38
Subtotal of cash flow in from operating activity 1,957,692,155.84 1,930,486,631.60
Cash paid for purchase of goods and reception of
1,116,738,134.87 1,010,882,821.40
labor services
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Net increase of loans and advances to customers
Net increase of due from central bank and due from
other banks
Cash from payment for settlement of the original
insurance contract
Net increase of the financial assets held for trading
purpose
Net increase of the lending capital
Cash paid for interest, service charge and commission
Cash for payment of policy dividend
Cash paid to and for staff 314,068,308.62 308,576,830.37
Taxes paid 130,569,918.63 169,009,260.06
Other business activity related cash payments 237,301,143.35 217,345,445.68
Subtotal of cash flow out from operating activity 1,798,677,505.47 1,705,814,357.51
Net cash flows arising from operating activities 159,014,650.37 224,672,274.09
II. Cash flow arising from investment activities:
Cash received from recovery of investment
Cash received from investment income
Net cash from disposal of fixed assets,intangible
84,258.51 6,872.90
assets and recovery of other long term assets
Net cash received from disposal of subsidiaries and
other operating units
Other investment related cash receipts
Subtotal of cash flow in from investment activity 84,258.51 6,872.90
Cash paid for purchase/construction of fixed assets,
89,298,306.14 52,519,739.81
Intangible assets and other long term assets
Cash paid for investment
Net increase of the pledged loan
Net cash paid for acquisition of subsidiaries and other
operation units
Other investment related cash payments
Subtotal of cash flow out from investment activity 89,298,306.14 52,519,739.81
Net cash flow arising from investment activities: -89,214,047.63 -52,512,866.91
III. Cash flow arising from fund-raising activities:
Cash received from absorbing investment 18,585,600.00
Incl.: Cash received from the subsidiaries’ absorption
47
FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
of minority shareholders’ investment
Cash received from loans 330,176,520.00 384,997,200.00
Cash received from bond issuing
Other fund-raising related cash receipts
Subtotal of cash flow in from fund raising activity 348,762,120.00 384,997,200.00
Cash paid for debt repayment 327,486,253.30 448,409,609.38
Cash paid for dividend/profit distribution or repayment
12,018,884.30 15,009,057.38
of interest
Including: Dividend and profit paid by the subsidiaries
to minority shareholders
Cash paid for other financing activities 17,565,400.00
Sub-total cash flow paid for financing activities 357,070,537.60 463,418,666.76
Net cash flow arising from fund-raising activities -8,308,417.60 -78,421,466.76
IV. Change of exchange rate influencing the cash and cash
201,307.31 118,439.84
equivalent
V. Net increase of cash and cash equivalents 61,693,492.45 93,856,380.26
Plus: Opening balance of cash and cash equivalents 162,623,059.97 184,947,891.32
VI. Ending balance of cash and cash equivalents 224,316,552.42 278,804,271.58
Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo
Person in charge of the Accounting Department: Tian Hui
6. Cash Flow Statement, Parent Company
In CNY
Items The first half year of 2019 The first half year of 2018
I. Cash flows arising from operating activities:
Cash received from sales of goods and supply of labor
66,872,263.13 56,758,456.16
service
Rebated taxes received
Other operation activity related cash receipts 1,733,050,857.61 1,204,947,705.78
Subtotal of cash flow in from operating activity 1,799,923,120.74 1,261,706,161.94
Cash paid for purchase of goods and reception of
labor services
Cash paid to and for staff 42,848,757.99 33,422,054.30
Taxes paid 5,460,385.81 4,702,936.63
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Other business activity related cash payments 1,676,610,396.74 1,045,289,650.60
Subtotal of cash flow out from operating activity 1,724,919,540.54 1,083,414,641.53
Net cash flows arising from operating activities 75,003,580.20 178,291,520.41
II. Cash flow arising from investment activities:
Cash received from recovery of investment
Cash received from investment income
Net cash from disposal of fixed assets,intangible
23,000.00
assets and recovery of other long term assets
Net cash received from disposal of subsidiaries and
other operating units
Other investment related cash receipts
Subtotal of cash flow in from investment activity 23,000.00
Cash paid for purchase/construction of fixed assets,
31,845,425.44 9,442,405.28
Intangible assets and other long term assets
Cash paid for investment
Net cash paid for acquisition of subsidiaries and other
operation units
Other investment related cash payments
Subtotal of cash flow out from investment activity 31,845,425.44 9,442,405.28
Net cash flow arising from investment activities: -31,822,425.44 -9,442,405.28
III. Cash flow arising from fund-raising activities:
Cash received from absorbing investment 18,585,600.00
Cash received from loans 310,000,000.00 360,000,000.00
Cash received from bond issuing
Other fund-raising related cash receipts
Subtotal of cash flow in from fund raising activity 328,585,600.00 360,000,000.00
Cash paid for debt repayment 295,000,000.00 392,500,000.00
Cash paid for dividend/profit distribution or repayment
11,510,341.40 14,108,861.83
of interest
Cash paid for other financing activities 17,565,400.00
Sub-total cash flow paid for financing activities 324,075,741.40 406,608,861.83
Net cash flow arising from fund-raising activities 4,509,858.60 -46,608,861.83
IV. Change of exchange rate influencing the cash and cash
1,378.48 -5,683.55
equivalent
V. Net increase of cash and cash equivalents 47,692,391.84 122,234,569.75
Plus: Opening balance of cash and cash equivalents 134,970,466.27 128,958,944.43
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
VI. Ending balance of cash and cash equivalents 182,662,858.11 251,193,514.18
Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo
Person in charge of the Accounting Department: Tian Hui
7. Consolidated Statement of Changes in Owner’s Equity
Amount in the reporting period
In CNY
The first half year of 2019
Owners’ equity attributable to the parent company
Minority
Other equity instruments Other Provision Total
Items sharehol
Less:
Capital Preferr Perpet Capital compreh Special Surplus for Retained owner’s
shares in Others Sub-total ders’
stock equity
ed ual Others Reserve ensive reserve Reserve general earnings
equity
stock
shares bond income risks
438,74
I. Ending balance of 1,062,45 -5,442,13 223,015, 851,360, 2,570,13 2,570,14
4,881.0 5,781.64
the previous year 5,644.22 9.78 793.80 603.66 4,782.90 0,564.54
0
Plus: Change in
accounting policy
Correction of
previous errors
Consolidation of
enterprises under the
same control
Others
438,74
II. Opening balance 1,062,45 -5,442,13 223,015, 851,360, 2,570,13 2,570,14
4,881.0 5,781.64
of the reporting year 5,644.22 9.78 793.80 603.66 4,782.90 0,564.54
0
III. Decrease/increase
of the report year 4,224,0 16,596,1 32,902,1 1,749,40 123,495, 113,162, 113,162,
13.67
(decrease is stated 00.00 97.31 98.89 7.20 460.90 866.52 880.19
with “-“)
(I) Total
1,749,40 123,495, 125,244, 125,244,
comprehensive 13.67
7.20 460.90 868.10 881.77
income
(II) Owners’ input and 4,224,0 16,596,1 32,902,1 -12,082,0 -12,082,0
decrease of capital 00.00 97.31 98.89 01.58 01.58
1. Common shares 4,224,0 16,596,1 18,585,6 2,234,59 2,234,59
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
contributed by the 00.00 97.31 00.00 7.31 7.31
owner
2. Capital contributed
by other equity
instruments holders
3. Amount of payment
for shares counted to
owners’ equity
14,316,5 -14,316,5 -14,316,5
4. Others
98.89 98.89 98.89
(III) Profit Distribution
1. Provision of
surplus reserve
2. Provision for
general risks
3. Distributions to the
owners (or
shareholders)
4. Others
(IV) Internal
carry-over of owners’
equity
1. Conversion of
capital reserve into
capital (or capital
stock)
2. Conversion of
surplus reserve into
capital (or capital
stock)
3. Loss made up for
with surplus reserve
4. Setting of the
amount involved in
the movement of the
beneficial plan carried
over to the retained
earnings
5. Other
comprehensive
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
income carried-over
to the retained
earnings
6. Others
(V) Special reserve
1. Provision in the
reporting period
2. Applied in the
reporting period
(VI) Others
442,96
IV. Ending balance of 1,079,05 32,902,1 -3,692,73 223,015, 974,856, 2,683,29 2,683,30
8,881.0 5,795.31
the reporting period 1,841.53 98.89 2.58 793.80 064.56 7,649.42 3,444.73
0
Amount in the previous period
In CNY
The first half year of 2018
Owners’ equity attributable to the parent company
Other equity
Other Provision Minority Total
Items instruments Less:
Capital Capital compreh Special Surplus for Retained sharehold owner’s
Preferr Perpet shares in Others Sub-total
stock Reserve ensive reserve Reserve general earnings ers’ equity equity
ed ual Others stock
income risks
shares bond
438,74
I. Ending balance of 1,062,45 -11,523,4 206,805, 771,484, 2,467,96 2,467,972,
4,881.0 5,515.78
the previous year 5,644.22 42.39 713.35 565.02 7,361.20 876.98
0
Plus: Change in
accounting policy
Correction of
previous errors
Consolidation
of enterprises under
the same control
Others
438,74
II. Opening balance 1,062,45 -11,523,4 206,805, 771,484, 2,467,96 2,467,972,
4,881.0 5,515.78
of the reporting year 5,644.22 42.39 713.35 565.02 7,361.20 876.98
0
III. -1,392,91 112,367, 110,975, 110,974,9
-35.24
Decrease/increase 9.75 921.44 001.69 66.45
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
of the report year
(decrease is stated
with “-“)
(I) Total
-1,392,91 112,367, 110,975, 110,974,9
comprehensive -35.24
9.75 921.44 001.69 66.45
income
(II) Owners’ input
and decrease of
capital
1. Common shares
contributed by the
owner
2. Capital
contributed by other
equity instruments
holders
3. Amount of
payment for shares
counted to owners’
equity
4. Others
(III) Profit Distribution
1. Provision of
surplus reserve
2. Provision for
general risks
3. Distributions to the
owners (or
shareholders)
4. Others
(IV) Internal
carry-over of owners’
equity
1. Conversion of
capital reserve into
capital (or capital
stock)
2. Conversion of
surplus reserve into
capital (or capital
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
stock)
3. Loss made up for
with surplus reserve
4. Setting of the
amount involved in
the movement of the
beneficial plan
carried over to the
retained earnings
5. Other
comprehensive
income carried-over
to the retained
earnings
6. Others
(V) Special reserve
1. Provision in the
reporting period
2. Applied in the
reporting period
(VI) Others
IV. Ending balance 438,74
1,062,45 -12,916,3 206,805, 883,852, 2,578,94 2,578,947,
of the reporting 4,881.0 5,480.54
5,644.22 62.14 713.35 486.46 2,362.89 843.43
period 0
Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo
Person in charge of the Accounting Department: Tian Hui
8. Consolidated Statement of Changes in Owner’s Equity, Parent Company
Amount in the reporting period
In CNY
The first half year of 2019
Other equity instruments Less: Other
Items Capital Capital Special Surplus Retained Total owners’
Preferred Perpetual shares in comprehen Others
stock Others Reserve reserve Reserve earnings equity
shares bond stock sive income
I. Ending balance of 438,744,8 1,068,111,1 223,015,79 683,798,0 2,413,669,946
the previous year 81.00 85.32 3.80 86.83 .95
Plus: Change in
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
accounting policy
Correction of
previous errors
Others
II. Opening balance of 438,744,8 1,068,111,1 223,015,79 683,798,0 2,413,669,946
the reporting year 81.00 85.32 3.80 86.83 .95
III. Decrease/increase
of the report year 4,224,000 16,596,197. 32,902,198. 5,152,486
-6,929,515.15
(decrease is stated .00 31 89 .43
with “-“)
(I) Total
5,152,486
comprehensive 5,152,486.43
.43
income
(II) Owners’ input and 4,224,000 16,596,197. 32,902,198. -12,082,001.5
decrease of capital .00 31 89 8
1. Common shares
4,224,000 16,596,197. 18,585,600.
contributed by the 2,234,597.31
.00 31 00
owner
2. Capital contributed
by other equity
instruments holders
3. Amount of payment
for shares counted to
owners’ equity
14,316,598. -14,316,598.8
4. Others
89 9
(III) Profit Distribution
1. Provision of surplus
reserve
2. Distributions to the
owners (or
shareholders)
3. Others
(IV) Internal carry-over
of owners’ equity
1. Conversion of
capital reserve into
capital (or capital
stock)
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
2. Conversion of
surplus reserve into
capital (or capital
stock)
3. Loss made up for
with surplus reserve
4. Setting of the
amount involved in the
movement of the
beneficial plan carried
over to the retained
earnings
5. Other
comprehensive
income carried-over to
the retained earnings
6. Others
(V) Special reserve
1. Provision in the
reporting period
2. Applied in the
reporting period
(VI) Others
IV. Ending balance of 442,968,8 1,084,707,3 32,902,198. 223,015,79 688,950,5 2,406,740,431
the reporting period 81.00 82.63 89 3.80 73.26 .80
Amount in the previous period
In CNY
The first half year of 2018
Other equity instruments Other
Less:
Items Capital Capital comprehen Special Surplus Retained Total owners’
Preferred Perpetua shares in Others
stock Others Reserve sive reserve Reserve earnings equity
shares l bond stock
income
I. Ending balance of 438,744, 1,068,111, 206,805,7 625,656,338. 2,339,318,118.
the previous year 881.00 185.32 13.35 99 66
Plus: Change in
accounting policy
Correction of
previous errors
Others
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
II. Opening balance 438,744, 1,068,111, 206,805,7 625,656,338. 2,339,318,118.
of the reporting year 881.00 185.32 13.35 99 66
III.
Decrease/increase of
the report year 552,842.37 552,842.37
(decrease is stated
with “-“)
(I) Total
comprehensive 552,842.37 552,842.37
income
(II) Owners’ input and
decrease of capital
1. Common shares
contributed by the
owner
2. Capital contributed
by other equity
instruments holders
3. Amount of
payment for shares
counted to owners’
equity
4. Others
(III) Profit Distribution
1. Provision of
surplus reserve
2. Distributions to the
owners (or
shareholders)
3. Others
(IV) Internal
carry-over of owners’
equity
1. Conversion of
capital reserve into
capital (or capital
stock)
2. Conversion of
surplus reserve into
capital (or capital
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
stock)
3. Loss made up for
with surplus reserve
4. Setting of the
amount involved in
the movement of the
beneficial plan
carried over to the
retained earnings
5. Other
comprehensive
income carried-over
to the retained
earnings
6. Others
(V) Special reserve
1. Provision in the
reporting period
2. Applied in the
reporting period
(VI) Others
IV. Ending balance of 438,744, 1,068,111, 206,805,7 626,209,181. 2,339,870,961.
the reporting period 881.00 185.32 13.35 36 03
Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo
Person in charge of the Accounting Department: Tian Hui
III. Company Profile
Fiyta Holdings Ltd. (hereinafter referred to as the Company) was reorganized, incorporated and renamed from Shenzhen
Fiyta Timer Industry Company on December 25 1992 with approval by the General Office of Shenzhen Municipal People’s
Government with Document SHEN FU BAN FU [1992] No. 1259 and with China National Aero-Technology Import &
Export Corporation Shenzhen Industry & Trade Center (which was renamed as AVIC International Shenzhen Company
Limited) as the sponsor. The Company's head office is located at the 20th Floor, FIYTA Technology Building, Gaoxin S.
Road One, Nanshan District, Shenzhen, Guangdong Province.
On March 10, 1993, the Company, with approval by the People’s Bank of China Shenzhen Special Economic Zone
Branch [SHEN REN YIN FU ZI (1993) No. 070], issued publically domestic CNY based common shares (A-shares) and
CNY based special shares (B-shares). In accordance with the Approval Document of Shenzhen Municipal Securities
Regulatory Office SHEN ZHENG BAN FU [1993] No. 20 and the Approval Document of Shenzhen Stock Exchange SHEN
ZHENG SHI ZI (1993) No. 16, the Company’s A-shares and B-shares were all listed with Shenzhen Stock Exchange for
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
trading commencing from June 3, 1993.
On January 30, 1997, with approval by Shenzhen Municipal Administration for Industry and Commerce, the Company was
renamed as Shenzhen Fiyta Holdings Ltd.
On July 4, 1997, according to the equity assignment agreement between China National Aero-Technology Corporation
Shenzhen (CATIC Shenzhen Corporation) and CATIC Shenzhen Holdings Limited (with original name of Shenzhen
CATIC Group Co., Ltd. (hereinafter referred to as CATIC Shenzhen), CATIC Shenzhen Corporation assigned 72.36 million
corporate shares (taking 52.24% of the Company’s total shares) to CATIC Shenzhen. From then on, the Company’s
controlling shareholder turned to be CATIC Shenzhen from CATIC Shenzhen Corporation.
On October 26, 2007, the Company implemented the equity separation reform, according to which the shareholder of the
Company’s non-negotiable shares would pay shares to the whole shareholders of negotiable shares registered on the
equity record day as designated in the equity separation reform plan at the rate of 3.1 shares for every 10 shares held by
them while the Company’s total 249,317,999 shares remained unchanged. So far, after the equity separation reform, the
proportion of the Company’s shares held by CATIC Shenzhen reduced from 52.24% to 44.69%.
On February 29, 2008, due to expansion of the Company’s business scope and with approval by Shenzhen Municipal
Administration for Industry and Commerce, the Company’s enterprise corporate business licence number was changed
from 4403011001583 into 440301103196089.
In 2010, approved by China Securities Regulatory Commission (CSRC) with the Official Reply on Approval of Non-public
Issuing of Shenzhen Fiyta Holdings Ltd., ZHENG JIAN XU KE [2010] No. 1703 and the Official Reply on the Issue of
Non-Public Issuing of Shenzhen Fiyta Holdings Ltd. by State-owned Assets Supervision and Administration Commission
of the State Council [2010] No. 430, the Company was approved to non-publically issue no more than 50 million common
shares (A-shares). After completion of non-public issuing on December 9, 2010, the Company’s registered capital
increased to CNY 280,548,479.00 and CATIC Shenzhen holds 41.49% of the Company’s equity based capital.
On March 3, 2011, with approval by Shenzhen Municipal Administration for Industry and Commerce, the Company was
renamed as Shenzhen Fiyta Holdings Ltd. On April 8, 2011, the Company took the total capital stock of 280,548,479
shares as the base, converted its capital reserve into capital stock at the rate of 4 shares for every 10 shares. After the
conversion, the Company’s total capital stock became 392,767,870 shares.
On November 11, 2015, approved by China Securities Regulatory Commission (CSRC) with the Official Reply on
Approval of Non-public Issuing of Fiyta Holdings Ltd., ZHENG JIAN XU KE [2015] No. 2588 and the Official Reply on the
Issue of Non-Public Issuing of Fiyta Holdings Ltd. by State-owned Assets Supervision and Administration Commission of
the State Council [2015] No. 415, the Company was approved to non-publically issue no more than 46,911,649 common
shares (A-shares). After completion of non-public issuing on December 22, 2015, the Company’s registered capital
increased to CNY 438,744,881.00 and AVIC IHL holds 37.15% of the Company’s equity based capital.
On December 20, 2018, approved by State-owned Assets Supervision and Administration Commission of the State
Council with the Official Reply on Fiyta Holdings Ltd. to Implement the Restrictive Stock Incentive Program (Phase I),
GUO ZI KAO FEN [2018] No. 936, the Company awarded A-share restrict stock by less than 4.277 million shares. After
completion of implementation of the A-share Restrictive Stock Incentive Program (Phase I) by January 30, 2019, the
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Company’s registered capital increased to CNY 442,968,881 and AVIC IHL holds 36.79% of the Company’s equity based
capital.
Ended June 30, 2019, the Company accumulatively issued altogether 442,968,881 shares of capital stock. For the detail,
refer to Note VII. 53 “Share Capital”.
The Company has established the Shareholders’ General Meeting, the Board of Directors, the Supervisory Committee,
the Audit Committee, the Strategy Committee and the Nomination, Remuneration and Assessment Committee as the
governance organs, etc. The Company has also established a number of functional departments, including
comprehensive management department, the Party construction work department, department of discipline inspection,
supervision and audit, financial department, human resource department, strategy operation department, data &
information department, innovation & design center, R & D department, property operation department, etc.
The principal business activities of the Company and its subsidiaries (collectively the Group) are: production and sales of
various pointer type mechanical watches, quartz watches and their driving units, spares and parts, various timing
apparatus, processing and wholesale of K gold watches and ornament watches; domestic trade, materials supply and
sales (excluding the commodities for exclusive operation, exclusive control and monopoly); property management and
lease; design service; self-run import & export business (implemented according to the Document SHEN MAO GUAN
DENG ZHENG ZI No. 2007-072). The Company's legal representative is Huang Yongfeng.
The financial statements were approved and issued through the resolution of the Board of Directors dated August 13,
2019.
There were 11 subsidiaries consolidated during the reporting period. For the detail, refer to Note IX. "Equity in Other
Entities". The consolidation scope of the reporting year is the same as that of the previous year. For the detail, refer to
Note VIII "Change of the Consolidation Scope".
IV. Basis for preparation of the financial statements
1. Preparation Basis
The financial statements are prepared with the going-concern assumption as the base and the transactions and matters
actually occurred in accordance with the Accounting Standards for Business Enterprises - Basic Standards promulgated
by the Ministry of Finance (issued by Order 33 of the Ministry of Finance and revised according to Order 76 of the Ministry
of Finance), 42 specific accounting standards promulgated and revised on February 15, 2006 and afterwards, and their
application guidelines, interpretations and other relevant requirements (collectively, "Accounting Standards for
Enterprises"). Besides, the Company discloses the relevant financial information in accordance with Compilation Rules for
Information Disclosure by Companies Offering Securities to the Public No.15-General Provisions on Financial Reports
(2014 Revision)
In accordance with the Enterprise Accounting Standards, the Company follows the accrual basis of accounting. With the
exception of some financial instruments, these financial statements are measured based on the historic cost basis. If
impaired, the assets shall provide for impairment in accordance with the relevant regulations.
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
2. Operation on Going Concern Basis
The financial statements of the Company have been prepared on going concern basis.
V. Important accounting policies and accounting estimates
Presentation on specific accounting policies and accounting estimates:
The Company and its subsidiaries have made a few of specific accounting policies and accounting estimates about
cognition of revenue, depreciation of fixed assets, amortization of intangible assets, R & D expenditures and other
transactions and matters in accordance with the actual operation and management characteristics and based on relevant
provisions of accounting standards for business enterprises. For the detail, refer to various descriptions stated in Note
V.39 "Revenue", Note V.24 "Fixed assets", Note V.30(1) "Intangible Assets", Note V.30(2) “R & D expenditure" for details.
1. Statement on complying with the accounting standards for business enterprise
The Company declares that the financial statements prepared by the Company comply with requirements of the
enterprise accounting standards, truly and completely reflect the concerned information, including the Company’s financial
position as at June 30, 2019 and operation achievements, cash flow, etc. from January to June, 2019. In addition, the
Company's financial statements are in conformity with the disclosure requirements of Compilation Rules for Information
Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions for Financing Reporting as
amended in 2014 by China Securities Regulatory Commission on relevant financial statements and their notes in all
important aspects.
2. Fiscal period
The accounting period adopted by the Company is from January 1 to December 31 of the Gregorian calendar.
3. Business Cycle
The Company's operating cycle is 12 months.
4. Recording Currency
Renminbi is the currency for the major economic environment where the Company and its domestic subsidiaries are
managed, and the Company and its domestic subsidiaries take Renminbi as the standard currency for accounting.
Except Switzerland based Montres Chouriet SA Company (hereinafter referred to as the "Swiss Company"), an overseas
subsidiary of FIYTA Hong Kong Co., Ltd. (hereinafter referred to as "FIYTA HK"), has determined Swiss Franc as its
recording currency for accounting in accordance with the currencies available in its major economic environment where it
is operated. The other overseas subsidiaries, including FIYTA HK, Station-68 Limited (hereinafter referred to as
“Station-68”), another subsidiary of FIYTA HK, have determined Hong Kong currency as their recording currency for
accounting in accordance with the currencies available in their major economic environment where they are operated.
Hong Kong currency will be converted into Renminbi while in preparing its financial statements.
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
The currency the Company takes in preparation of these financial statements is Renminbi.
5. The accounting treatment on consolidation of the enterprises under the same control and not under the same
control
Merger of enterprises refers to the transaction or matter that two or more independent enterprises are merged into a
reporting entity. The merger of enterprises includes merger under the same control and the merger not under the same
control.
(1) Merger of enterprises under the same control
The enterprise participating in merger is under the final control of the same party or parties and such control is not
temporary, this is the merger of enterprises under the same control. In the merger of enterprises under the same control,
the party that obtains the control right to the other enterprises participating in merger on the date of merger is the merging
party and the other enterprises participating in the merger are the merged party. The date of merger refers to the date
when the merging party has actually obtained the control right to the merged party.
The assets and liabilities acquired by the merging party are measured at the book value on the merged party on the date
of merger. If the book value of net assets acquired by the merging party is different with the book value paid for merger
consideration (or sum of book value of issued shares), the capital reserve (premium on stock capital) shall be adjusted; if
the capital reserve (premium on stock capital) is not sufficient to be written down, the retained earnings shall be adjusted.
Various direct expenses incurred by the merging party for merger of enterprises are included in the current profits and
losses at the time of occurrence.
(2) Merger of enterprises not under the same control
The enterprises to be merged, if not under the final control by the same party or parties before or after merger, refer to the
merger of enterprises not under the same control. For the merger of enterprises not under the same control, the party
acquiring the control right to the other enterprises involved with the merger on the date of purchase is the purchasing party
and the other enterprises involved with the merger are the purchased party. The date of purchase refers to the date when
the purchasing party actually acquires the control right to the purchased party.
For the merger of enterprises not under the same control, the merger costs contain the assets paid by the purchasing
party on the date of purchase for acquiring the control right to the purchased party, the liabilities incurred or undertaken
and the fair value of the issued equity securities are the commission incurred for merger of enterprises and involved
with audit, legal service, evaluation, consultation and etc., as well as other overhead expenses, are included in the current
profits and losses at the time of occurrence. The transaction costs of equity securities or debt securities issued as merger
consideration by the purchasing party are included in the initial confirmation amount of equity securities or debt securities.
The contingent consideration involved is included into the merger costs at the fair value on its purchase date. If it is
necessary to adjust the contingent consideration because any new or further evidence for the existing situation on the
purchase date appears within 12 months after the purchase date, the merged goodwill shall be modified accordingly. The
merger costs incurred and the net identifiable assets acquired in the merger by the purchasing party are measured at the
fair value on the purchase date. The difference that the merger costs are larger than the fair value of the net identifiable
assets of the purchased party on the purchase date as acquired in the merger is confirmed as the goodwill. If the merger
costs are less than the fair value of the net identifiable assets of the purchased party as acquired in the merger, the fair
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
value of various identifiable assets, liabilities and contingent liabilities of the purchased party and measurement of merger
costs are first checked, and if the merger costs are less than the fair value of net identifiable assets of the purchased party
acquired in the merger, the difference is included in the current profits and losses.
If the deductable temporary difference of the purchased party acquired by the purchasing party is not confirmed for it does
not conform to the confirmation conditions of deferred tax assets on the date of purchase, but new or further information
obtained within 12 months after the date of purchase shows the existence of relevant situation on the date of purchase
and it is expected that the economic interest arising from deductable temporary difference of the purchased party on the
date of purchase could be realized, the relevant deferred tax assets are confirmed and the goodwill is reduced
synchronously. If the goodwill is not sufficient to be written down, the difference is confirmed as the current profits and
losses; except the above situation, if the deferred tax assets involved with merger of enterprises are confirmed, it is
included in the current profits and losses.
For the merger of enterprises not under the same control as realized in steps through several transactions, whether the
several transactions are "package deals" is judged in accordance with the Notice of the Ministry of Finance on Issuing the
Explanation No. 5 of Accounting Standards for Business Enterprises (Cai Kuai [2012]19) and the judgment standard on
“package deals” in article 51 of Accounting Standards for Business Enterprises No. 33 - Consolidated Financial
Statements (see the Note 5.6(2)). If they are package deals, they are treated with reference to the description of various
paragraphs in front of this part and the Note V.22 “Long-term Equity Investment”; if they are not package deals, individual
financial statements and consolidated financial statements shall undergo separately relevant accounting treatment:
In individual financial statements, the sum of the book value of the equity investment of the purchased party as held before
the date of purchase and the newly increased investment costs on the date of purchase is used as the initial investment
costs of the investment; if the equity of the purchased party as held before the date of purchase is involved with other
comprehensive income, while this investment is being disposed, other comprehensive incomes related to it are made
accounting treatment on the same basis as the purchased party directly disposing relevant assets or liabilities (namely,
except the purchased party measures again the corresponding share in the change caused by the net liabilities or net
assets of the set benefit plan according to the equity method, the others are included in the current profits and losses).
In the consolidated financial statements, the equity of the purchased party as held before the date of purchase is
measured again at the fair value on the date of purchase of such equity, and the difference between the fair value and its
book value is included in the current profits and losses; if the equity of the purchased party as held before the date of
purchase is involved with other comprehensive incomes, other comprehensive incomes related to it shall be made
accounting treatment on the same basis as the purchased party directly disposing relevant assets or liabilities (namely,
except the purchased party measures again the corresponding share in the change caused by the net liabilities or net
assets of the set benefit plan according to the equity method, the others are included in the current profits and losses).
6. Method of preparing consolidated financial statements
(1) Principle of determining the scope of consolidated financial statements
The consolidation scope of the consolidated financial statements is determined on the basis of control. Control refers to,
the Company owns the power to the purchased party, enjoys variable return by participating in the relevant activities of the
purchased party and is able to impact the amount of return by using the power to the purchased party. The scope of
consolidation includes the Company and all of its subsidiaries. A subsidiary refers to the entity under control of the
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
Company.
Once the change of relevant facts and situations causes the change of relevant factors involved with the above definition
of control, the Company will make new evaluation.
(2) Method of preparing consolidated financial statements
As of the date when the actual control right to the net assets, production and management decision of subsidiary is
acquired, the Company starts to put it into the scope of consolidation; ceases to contain it in the scope of consolidation
from the date of losing the actual control right. For any subsidiary disposed, its operation result and cash flow before
disposal date have been properly contained in the consolidated profit statement and consolidated cash flow; any
subsidiary disposed in the current period is not modified the beginning number of the balance sheet. For any subsidiary
increasing due to merger of enterprises not under the same control, its operation result and cash flow after the date of
purchase have been properly contained in the consolidated profit statement and consolidated cash flow, and the
beginning number and comparison number of the consolidated financial statements are not modified. For any subsidiary
increasing due to merger of enterprises under the same control, its operation result and cash flow from the beginning of
the current consolidation period to the date of consolidation have been properly contained in the consolidated profit
statement and consolidated cash flow, and the comparison numbers of the consolidated financial statement are
synchronously modified.
While preparing the consolidated financial statements, if the accounting policies or accounting period adopted by any
subsidiary and the Company are not consistent, necessary modification shall be made to the subsidiary's financial
statements based on the Company's accounting policies and accounting period. For any subsidiary acquired from merger
of enterprises not under the same control, its financial statements are modified on the basis of the fair value of net
identifiable assets on the date of purchase.
All major current account balances, transactions and unrealized profit in the Company are set off in preparation of
consolidated financial statements.
In the stockholder's equity and current net profit or loss of a subsidiary, the parts not owned by the Company are solely
listed under the stockholder's equity and net profit in the consolidated financial statements separately as minority equity
and minority interest. If the loss of subsidiary shared by minority shareholders exceeds the share enjoyed by minority
shareholders in the shareholders' equity of the subsidiary in the beginning, it still writes down the minority equity. When
the loss in a subsidiary shared by minority shareholders exceeded the share in the shareholders’ equity enjoyable by the
minority shareholders at the beginning of the reporting period, the minority shareholders’ equity should be written down.
When the control right to the original subsidiary is lost due to disposal of partial equity investment or other reasons, the
residual equity is measured again at its fair value on the date of losing the control right. The sum of the consideration
acquired from disposal of equity and the fair value of residual equity is minus the share of net assets of the original
subsidiary as continually calculated from the date of purchase at the original shareholding ratio, such difference is
included in the investment income in the current period of losing the control right. Other comprehensive incomes related to
equity investment of the original subsidiary shall be made accounting treatment on the same basis as the purchased party
directly disposing relevant assets or liabilities when the control right is lost (namely, except the original subsidiary
measures again the change caused by the net liabilities or net assets of the set benefit plan according to the equity
method, the others are included in the current profits and losses). Thereafter, such part of the residual equity is made
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subsequent measurement in accordance with the Accounting Standards for Business Enterprises No. 2 - Long-term
Equity Investment or Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments and other relevant provisions. See the Note V.22 "Long-term Equity Investment" or the Note V.10 “Financial
Instruments”.
If the Company disposes the investment on the subsidiary's equity in steps through several transactions and until loses
the control right, whether the various transactions disposing the investment on the subsidiary's equity until losing the
control right are package deals shall be distinguished. If the terms, conditions and economic impact of various
transactions disposing the investment on the subsidiary's equity conform to one or more of the following circumstances, it
is usually indicated that several transactions shall be made accounting treatment as package deal:① these transactions
are concluded synchronously or in consideration of mutual impact; ② these transactions can wholly reach a complete
commercial result; ③ Occurrence of a transaction lies on occurrence of at least another transaction; ④ A transaction
may be uneconomic separately, but it is economical if the transaction is considered with other ones. If they are not
package deals, each transaction thereof shall undergo accounting treatment in accordance with the principle applicable
for “partially disposing long-term equity investment on subsidiary in the case of not losing control power”(for the detail,
refer to Note V.22. (2) and ④,) and “losing control power to the original subsidiary due to disposal of partial equity
investment or other reasons”(for the detail, refer to the above paragraph) as appropriate. If the various transactions
disposing the investment on the subsidiary's equity until losing control power are package deals, various transactions
undergo accounting treatment as a transaction of disposing the subsidiary and losing control power; however, before
losing control power, the difference between every disposal amount and the share of the subsidiary's net assets enjoyed
corresponding to disposal of investment is recognized as other comprehensive income in the consolidated financial
statements, and is included in the current profit and loss corresponding to loss of control power.
7. Classification of joint venture arrangements and accounting treatment method of joint management
Joint venture arrangement refers to an arrangement that two or more participants jointly control. In accordance with the
rights enjoyed and obligations undertaken in the joint venture arrangement, the Company classifies joint venture
arrangements into joint management and joint venture. Joint management refers to the joint venture arrangement that the
Company enjoys the relevant assets of the arrangement and undertakes the relevant liabilities of the arrangement. Joint
venture refers to the joint venture arrangement that the Company only enjoys rights to the net assets of the arrangement.
The Company's investment in a joint venture is measured with equity method and is treated in accordance with the
accounting policies as stated in the Note V.22(2) ② "Long-term equity investment measured with equity method".
As a joint venture in the joint management, the Company confirms the assets solely held, liabilities solely undertaken and
the assets jointly held and liabilities jointly undertaken as confirmed according to the Company's share; confirms the
income arising from sale of the joint management's output share enjoyed by the Company; confirms the income arising
from sale of output if confirming joint management according to the Company's share; confirms the expenses solely
incurred by the Company, and the expenses incurred if confirming joint management according to the Company's share.
When the Company as a joint venture delivers or sells assets to the joint management (the assets do not constitute
business, same as below), or the joint management purchases assets, before such assets are sold to a third party, the
Company only confirms the parts in the profit and loss arising from such transaction and belonging to other participants of
the joint management. If occurrence of such assets is in conformity with the impairment loss as stated in the Accounting
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Standards for Business Enterprises No. 8 - Impairment of Assets, in the event that the Company delivers or sells assets to
the joint management, the Company fully confirms the loss; in the event that the Company purchases assets from the joint
management, the Company confirms the loss according to its share undertaken.
8. Standard for confirming cash and cash equivalent
The cash and cash equivalent of the Company include the cash on hand, the deposit that can be used for payment at any
time, and the investment held by the Company, which has short term (generally becomes mature within three months from
the date of purchase), good liquidity and is easy to be converted into known amount of cash and with low risk in change of
value.
9. Foreign currency transactions and translation of foreign currency statements
(1) Translation methods for foreign currency transactions
The foreign currency transactions occurred in the Company, at the time of initial recognition, shall be translated into the
amount of bookkeeping base currency at the spot exchange rate (generally refer to the medium price of the foreign
exchange quotation as declared by the People's Bank of China) on the date of transaction, but any foreign currency
exchanging business or any transaction related to exchange of foreign currency occurred by the Company shall be
translated into the amount of bookkeeping base currency at the actual exchange rate.
(2) Translation methods for monetary items in foreign currency and nonmonetary items in foreign currency
The balance of foreign currency monetary items are translated at the spot exchange rate on the balance sheet date and
the exchange differences arising therefrom shall be included in the current profit and loss, except ① those exchange
differences arising from the special borrowings of foreign currency related to the acquired and constructed assets qualified
for capitalization that will be capitalized at the borrowing expenses. ② (only applicable to the existing hedging caculated
according to the hedge accounting method) the balance of exchange used in the hedging instrument with effective
hedging of net investment in foreign business (such balance is counted to other comprehensive income until the disposed
net investment is recognized as the current gain and loss); and ③ those arising from the other changes in the balance
other than amortized cost of available-for-sale monetary items denominated in foreign currency are recognized in the
other comprehensive income.
If preparation of consolidated financial statements is involved with overseas operation and any monetary item in foreign
currency substantially constitutes net investment to overseas operation, the balance of exchange arising from change of
exchange rate is included in other comprehensive incomes; when overseas operation is disposed, it is transferred into the
current profits and losses from disposal.
The foreign currency non-monetary items measured based on the historical cost is still measured by means of the amount
of the recording currency translated based on the spot rate incurred on the day when the transaction takes place. The
non-monetary items in foreign currency measured at fair value are translated at the exchange rate on the date of
recognizing fair value, and the difference between the amount in bookkeeping base currency and the previous amount in
bookkeeping base currency after translated is treated as change of fair value (including change of exchange rate) and
included in the current profits and losses or recognized as other comprehensive incomes.
(3) Method of Translation for the Statements in Foreign Currency
In preparation of consolidated financial statements concerning overseas business, in case there exist any foreign
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currency monetary items which substantially form net investment in overseas business, the exchange differences arising
from fluctuation in exchange rates are recognized as other comprehensive income as " tralsation differences in foreign
currency statements"; and are counted to the current profit and loss when the overseas businesses are disposed.
The financial statements in foreign currency for overseas operation are translated into the statements in Renminbi
according to the following method: the items of assets and liabilities in the balance sheet are translated at the spot
exchange rate on the date of balance sheet; in the items of stockholder's equity, except the item of “retained earnings”,
other items are translated at the spot exchange rate at the time of occurrence. The items of incomes and expenses in the
profit statement are translated at the current average exchange rate on the transaction occurring date. The undistributed
profit at the beginning of the year is the undistributed profit at the ending of the previous year after translated; the
undistributed profit at the ending of the year is listed according to the calculation of translated profit distributed on various
items; after translated, the difference between the sum of assets items and liabilities items and the sum of stockholder's
equity items is the translated difference of statements in foreign currency and is recognized as other comprehensive
incomes. If overseas operation is disposed and the control right is lost, the translated difference of foreign currency
statements as listed under the item of stockholder's equity in balance sheet and related to overseas operation is
transferred fully or at the ratio of disposing the overseas operation into the current profits and losses from disposal.
The cash flow in foreign currency and cash flow of overseas subsidiaries are translated at the current average exchange
rate on the cash flow occurring date. The amount affected by the change of the exchange rate on cash is used as the
adjustment item and is separately presented on the cash flow statement. The amount of cash impacted by change of
exchange rate is used as the modification item and solely listed in the cash flow statement.
The number in the beginning of the year and the actual number in the previous year are listed according to the amount
after the financial statements for the previous year are translated.
While disposing all owners' equity of the Company in overseas operation or losing the control right to overseas operation
due to disposal of partial equity investment or other reasons, the foreign current statements attributive to the owners'
equity of the parent company, as listed under the item of stockholder's equity in balance sheet and related to overseas
operation, are translated into difference and fully transferred into the current profits and losses from disposal.
When the ratio of holding overseas operation equity caused by disposal of partial equity investment or other reasons
reduces but the control right to overseas operation is not lost, the translated difference of foreign currency statements
related to the overseas operation disposing part is attributive to minority equity and not transferred into the current profits
and losses. When the disposal of overseas operation is involved with the partial equity of a joint venture or a cooperative
enterprise, the translated difference of foreign currency statements related to the overseas operation is transferred at the
ratio of disposing the overseas operation into the current profits and losses from disposal.
10. Financial instruments
(1) Recognition and derecognition of financial instruments
A financial asset or financial liability is recognized when the Company becomes a party to a financial instrument contract.
The financial assets purchased or sold in any conventional manner are recognized and derecognized based on the
accounting of the trading day. The financial assets purchased or sold in any conventional manner refers to reception or
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delivery of the financial assets within the time limit as specified in the regulations or conventions. A trading day refers to
the day when the Company commits to buy or sell a financial asset.
A financial asset (or a part of financial assets or a part of a similar financial asset group) is derecognized, namely written
off from its account and balance sheet when the following conditions are satisfied:
① the rights to receive cash flows from the financial assets have expired; or
② the Bank has transferred its rights to receive cash flows from the assets; or has retained its rights to receive cash flows
from the assets but has assumed an obligation to pay them in full without material delay to a third party under a
“pass-through” arrangement; and (a) the Bank has transferred substantially all the risks and rewards of ownership of the
financial asset; or (b) the Bank has neither transferred nor retained substantially all the risks and rewards of ownership of
the financial asset, but has transferred control of the asset.
(2) Classification and measurement of financial assets
The financial assets of the Company are classified at the initial recognition according to the business model of the
Company's management of financial assets and the contractual cash flow characteristics of the financial assets: financial
assets measured at amortized cost, financial assets measured at fair value and whose movement is counted in the other
comprehensive income and financial assets measured at fair value and whose movement is counted in the current profit
and loss. The successive measure of financial assets depends on their classification
The Company classifies financial assets according to the business model of the Company's management of financial
assets and the cash flow characteristics of financial assets.
① Financial assets measured based on the amortized cost
Financial assets are classified into financial assets measured at amortized cost if the financial assets meet the following
conditions: the business model for the management of the financial assets takes collection of the contractual cash flows
as the objective; according to the contractual terms of the financial asset， the cash flow created on the specific date is
exclusively for payment of the principal and the interest based on the outstanding amount of the principal The effective
interest method is applied for this class of financial assets and the successive measurement is conducted according to the
amortized cost， and the gains or losses generated from the amortization or impairment are counted to in the current profit
and loss.
② Debt instrument investment measured at fair value with the change counted in the other comprehensive income
A financial asset is classified as a financial asset measured at fair value and whose change is counted to other
comprehensive income it meets the following conditions: the business model for the management of the financial asset
takes collection of the contractual cash flows as the objective; according to the contractual terms of the financial asset，
the cash flow created on the specific date is exclusively for payment of the principal and the interest based on the
outstanding amount of the principal. For such class of financial asset， the fair value is used for the successive
measurement。 Its discount or premium is amortized by using the effective interest method and recognized as interest
income or expense。 Except for the impairment loss and the exchange differences of foreign currency monetary financial
assets recognized as the current profit or loss, the change in the fair value of such financial assets is recognised in other
comprehensive income until such a financial asset is derecognised and its accumulated profit or loss is transferred to the
current profit or loss. The interest income related to such type of financial asset is counted to the current profit and loss.
③ Equity instrument investment measured at fair value with the change counted in the other comprehensive income
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The Company irrevocably chooses to designate partial non-tradable equity instrument investments as financial asset
measured at fair value with its change counted to the other comprehensive income and the relevant dividend income
counted to the current profit or loss and the change in the fair value recognized as other comprehensive income until the
financial asset is derecognised and its accumulated profit or loss is transferred to the retained earnings.
④ The financial asset measured at fair values with the change counted to the current profit and loss
The financial assets other than those measured at the amortized cost as well as at fair value with the change counted to
the other comprehensive income are classified as the financial assets measured at fair value with the change counted to
the current profit and loss. At the time of the initial recognition, for the purpose of eliminating or significantly reducing
accounting mismatching, it is possible to designate the financial assets as that measured at fair value with the change
counted to the current profit and loss. For such class of financial asset， the fair value is used for the successive
measurement and all the change in the fair value is counted to the current profit and loss.
All the affected relevant financial assets are reclassified if and only if the Company changes the business model for
managing financial assets.
For the financial assets measured at fair value with the change counted to the current profits and losses, the relevant
transaction expenses are directly included in the current profit and loss; the relevant transaction expenses for other
categories of financial assets are counted to the amount of the initial recognition.
(3) Classification and measurement of financial liabilities
In the initial recognition, financial liabilities are classified as the financial liabilities measured at the amortized cost and that
measured at fair value with the change counted to the current profit and loss.
The financial liabilities that meet one of the following conditions can be designated as the financial liabilities measured at
fair value with the change counted to the current profit or loss: ① the designation may eliminate or significantly reduce
the accounting mismatching; ② to conduct management and performance assessment for financial liability portfolios or
combination of financial assets and financial liabilities based on fair value according to the Company’s risk management
or investment strategies as stated in the formal written documents, and to report to the key management personnel on the
basis of this; ③ the financial liabilities including the embedded derivatives that need to be split separately.
Classification of the financial liabilities determined by the Company at the time of the initial recognition. For the financial
assets measured at fair value with the change counted to the current profits and losses, the relevant transaction expenses
are directly included in the current profit and loss; the relevant transaction expenses for other financial liabilities are
counted to the amount of the initial recognition.
The successive measurement of financial liabilities depends on their classification:
① Financial liabilities measured based on the amortized cost
The effective interest method is applied for this category of financial liabilities and the successive measurement is
conducted according to the amortized cost.
② The financial liabilities measured at fair values with the change counted to the current profit and loss
Financial liabilities measured at their fair values with the change counted to the current profits and losses include
transactional financial liabilities (including the derivative instruments belonging to financial liabilities) and the financial
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liabilities measured at fair value with the change counted to the current profits and losses directly designated at the initial
recognition.
(4) Offsetting of financial instruments
When the following condition is satisfied at the same time, the financial assets and financial liabilities are presented in the
balance sheet with the net amount after offsetting each other: there is a statutory right to offset the confirmed amount, and
the legal right is currently enforceable; it is planned to make settlement with net amount, or the financial asset is realized
and the financial liability is paid off at the same time.
(5) Impairment of financial assets
① The Company recognizes loss provision based on expected credit losses for financial assets measured at amortized
cost, debt instrument investments and financial guarantee contracts measured at fair value with the changes counted to
the other comprehensive income. The Company confirms the expected credit loss by considering reasonable and
evidenced information about past events, current conditions, forecasting the future economic conditions, taking the risk of
default as the weight, calculating the probability weighted amount of the present value of the difference between the cash
flow receivable from the contract and the cash flow expected to be received. On each balance sheet day, the Company
measures the expected credit losses of financial instruments at different stages. If the credit risk has not increased
significantly since the initial recognition, the financial instrument is at the first stage, and the Company measures the
provision for the loss according to the expected credit loss within the next 12 months; if the credit risk has increased
significantly since the initial confirmation but impairment of the credit has not yet occurred, the financial instrument is at
the second stage, the Company measures the provision for the loss according to the expected credit loss of the financial
instrument for the entire duration; if the credit impairment has taken place since the initial recognition, the financial
instrument is at the third stage and the Company provides reserve for the expected credit loss of the financial instrument
for the entire duration.
For financial instruments with lower credit risk on the balance sheet day, the Company assumes that its credit risk has not
increased significantly since the initial recognition, and measures the provision for the loss according to the expected
credit losses in the next 12 months. For the financial instrument at the first stage or the second stage or with lower credit
risk, the Company calculates the interest income.
Based on the book balance without deduction of the provision for the impairment and the actual interest rate. For the
financial instrument at the third stage, the Company calculates the interest income according to the book balance less the
amortized cost after provision for the impairment and the actual interest rate.
② For receivables, regardless of whether there exists a significant financing component, the Company considers all
reasonable and evidence-based information, including forward-looking information, to estimate the expected credit losses
of the aforesaid receivables in a single or combined manner and to adopt the simplified model of the expected credit
losses, always measures provision for loss based on expected credit losses for the entire duration. Provision method is as
follows:
(a) At the end of the reporting period, the Company conducts separate impairment testing on the receivables if there is
objective evidence proving that such receivables have experienced impairment. Loss for impairment is recognized and
provision for bad debt is made based on the difference of the present value of the estimated future cash flows lower than
their carrying amount.
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(b) When the information of the expected credit loss of a single financing asset cannot be assessed with reasonable cost,
the Company divides the receivables portfolio according to the credit risk characteristics and calculates the expected
credit losses on a portfolio basis.
For receivables classified as risk portfolios, the Company calculates the expected credit losses with reference to the
historical experience of credit loss with consideration of the present situation and the prediction of the future economic
condition by using the impairment provision model. The Company counts the provision for loss made or reversed to the
current profit and loss
(6) Transfer of financial assets
If substantially all of risks and remunerations on the ownership of the financial asset have been transferred to the
transferee, the financial asset's recognition is terminated; if substantially all of risks and remunerations on the ownership
of the financial asset are kept, the financial asset's recognition is not terminated.
If the enterprise has neither transferred nor kept substantially all of risks and remunerations on the ownership of the
financial asset, treatment is made respectively based on the following conditions: in case control over the financial asset
has been given up, recognition of that financial asset as well and the assets and liabilities generated are terminated; in
case control over the financial asset has not been given up, relevant financial assets are recognized based on the extent
continually involved with the transferred financial asset, and relevant liabilities are recognized accordingly.
In the transferred financial asset continues to be involved by providing financial guarantee, the asset formed by
continuous involvement is recognized based on the lower of the book value of the financial asset and the amount of the
financial guarantee. The amount of the financial guarantee refers to the maximum amount in the consideration received
and required to be repaid.
11. Notes receivable
Refer to Note 10. Financial Instrument Item (5)
12. Accounts receivable
Refer to Note 10. Financial Instrument Item (5)
13. Financing with accounts receivable
Inapplicable
14. Other receivables
Refer to Note 10. Financial Instrument Item (5)
15. Inventories
Does the Company need to comply with the requirements on information disclosure for special industries?
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No
(1) Classification of Inventories
Inventories mainly consist of raw materials, products-in-process, commodity stocks, etc.
(2) Pricing of Inventories Acquired and Delivered
Inventories delivered are priced based on the actual cost. Costs of inventories which consist of purchase cost, Raw
materials, products-in-process and merchandise inventory are priced respectively according to the weighted average
(with brand world watch stocks exclusive), specific identification (for famous brand watch stocks) at the time of delivery.
(3) Determination of the net realizable value of inventories and the method for provision for price falling of inventories
The net realizable value of the inventories refers to the amount of the estimated sales price of the inventory less the
estimated sales costs to incur at the time of completion, sales expenses and relevant taxes in process of normal
production and operation. In determining the net realizable value of inventory, with the obtained valid evidence as the
base, the purpose of holding the inventory and the influence from the events after the balance sheet day is taken into
consideration at the same time..
On the balance sheet day, inventories are measured based on the lower of the cost and the net realizable value. When the
net realizable value is lower than the costs, reserve for price falling of inventories is provided. in which
① For the inventories directly for sale, including the finished products and the materials for sale, in process of normal
production and operation, the realizable net value is the amount of the estimated sales price of the inventories less the
estimated sales costs and the relevant taxes;
② For the material inventories necessary to be processed, the realizable net value is the amount of the estimated sales
price of the finished products produced in process of normal production and operation less the costs predicted to incur at
the time of finishing the work, the estimated sales expenses and the relevant taxes.
The Company provides reserve for price falling of the inventories classified based on the models of self-made watch
inventories.
For the famous brand watches in distribution, reserve for price falling of inventories is provided based on the individual
items.
For the raw materials for FIYTA watches, based on the terminal sales status of FIYTA finished watches, reserve for price
falling of inventories is provided with interchangeability of spares and parts and specialized classification of applications of
materials taken into consideration.
After provision for price falling of inventories, in case the influencing element for previous reduction of the inventory value
has disappeared, causing the realizable net value of the inventory higher than the carrying value, the provision for price
falling of the inventory originally made can be reversed and the reversed amount is charged to the current gain and loss.
(4) The inventory system for the inventories is the perpetual inventory system
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(5) Amortization of low value consumables and packing materials
Low value consumables and packing materials are amortized in lump sum at the time of reception.
16. Contract assets
Inapplicable
17. Contract cost
Inapplicable
18. Classified as assets held for sale
The Company shall classify a non-current asset or disposal group as held for sale if its carrying amount will be recovered
principally through a sale transaction (including a non-monetary asset exchange of commercial substance, the same
below) rather than through continuous use. Non-current assets or disposal group classified as held for sale shall meet the
following criteria: disposable immediately under current conditions based on similar transactions for disposals of such
assets or practices for the disposal group; a decision has been made on a plan for disposal and an undertaking to
purchase has been obtained, and the disposal is expected to be completed within a year. Where, the disposal group
refers to a group of assets which are disposed altogether by sale or other way as a whole in a transaction as well as a
liability transferred in the transaction with direct connection with these these assets. For an asset group or asset group
portfolio attributable to the disposal group where the goodwill has been apportioned at the time of entity consolidation
according to the Standards for Enterprise Accounting No. 8 - Impairment of Assets, the disposal group should be included
in the goodwill apportioned to the disposal group.
When the Company initially measures or re-measures the held-for-sale non-current assets and disposal group on the
balance sheet date, if the book value is higher than the fair value less the sales expenses, the book value is reduced to
the net amount of the fair value less the sales expenses, the amount of the write-down is recognized as the asset
impairment loss, which is included in the current profit and loss, and the provision for impairment of assets held for sale is
made. For the disposal group, the loss from impairment of the assets as recognized first offsets the carrying value of the
goodwill in the disposal group and then offsets the carrying value of various non-current assets in the disposal group in
compliance with the measurement provisions as specified in the Standard for Enterprise Accounting No. 42 -
Held-for-Sale Non-current Assets, Disposal Group and Termination of Operation (hereinafter referred to as the “Standard
for Holding for Sale). In case the net amount of the fair value of the held-for-sale disposal group less the sales expense
increases after the balance sheet day, the amount previously written down should be recovered and reversed within the
amount of loss from the impairment of the assets recognized as the non-current assets according to the provisions
applicable to the measurement based on the standards for holding-for-sale after being classified as the category of
holding-for-sale and the amount reversed is counted to the current profit and loss;and the book value increases based on
the proportions of the book value of each non-current asset accounted for in the disposal group except for the goodwill;
the book value of the goodwill already written down and loss from the impairment of the assets recognized as the
non-current assets according to the provisions applicable to the measurement based on the standards for holding-for-sale
after being classified as the category of holding-for-sale must not be reversed.
No depreciation or amortization is provided for a non-current asset in the non-current assets or disposal groups held for
sale. Interest and other expenses attributable to the liabilities of a disposal group held for sale shall continue to be
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recognized.
When a non-current asset or disposal group no longer satisfies the conditions for classification of the held-for-sale, the
Company no longer classifies it as held-for-sale category or removes the non-current asset from the held-for-sale disposal
group, and measures it based on the lower of the two: (1) for the book value before classification as the held-for-sale, the
amount after the adjustment for depreciation, amortization or impairment which should be recognized under the condition
in which it is assumed not to be classified as held-for-sale; (2) recoverable amount.
19. Equity investment
Inapplicable
20. Other equity investment
Inapplicable
21. Long term accounts receivable
Inapplicable
22. Long-term equity investments
The long-term equity investment as stated in this part refers to the long term equity investment with control over, joint
control over or significant influence upon the investees. The long term equity investment without control over, joint control
over or significant influence upon the investees in the Company are taken as available-for-sale financial assets or the
financial assets which are measured based on the fair value and their changes are counted to the current profit and loss.
For the detail of the accounting policy, refer to Note V. 10 "Financial Instruments".
Joint control refers to the joint control over some arrangement made by the Company according to the relevant agreement
and the relevant activities for the arrangement must be jointly decided by all the parties sharing the control power.
Significant influence refers to the Company's power of participation in making an investee's financial and operation
policies but the Company cannot control or jointly control with other parties to make these policies.
(1) Determination of Investment Costs
For the long term equity investment acquired through consolidation of enterprises under the common control, the share of
the book value of the consolidatee's owner's equity as at the date of consolidation in the eventual controller's financial
statements is taken as the initial investment cost of the long term equity investment. The balance among the initial
investment cost of the long term equity investment and the cash as paid, non-cash asset as assigned and the book value
of the liabilities as assumed is used for adjustment of the capital reserve; in case the capital reserve is not enough for
writing-down, the retained earnings is adjusted. Where the equity securities are issued as the consolidation consideration,
the share of the book value of the shareholders' equity in the ultimate controlling party's consolidated financial statements
on the consolidation day is the initial investment cost of the long-term equity investment, and the total carrying amount of
the issued shares is taken as the share capital, the difference between the initial investment cost of the long-term equity
investment and the total carrying amount of the shares issued is used to adjust the capital reserve; if the capital reserve is
insufficient to offset, the retained earnings are adjusted. The equity which is acquired in steps through a number of
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transactions and eventually forms consolidation of enterprises not under the common control shall be treated depending
on whether it belongs to "one package deal": if it belongs to "one package deal", all the transactions shall be taken as a
transaction for acquiring the control power for accounting treatment. If it does not belong to“one package deal”, the share
of the book value of the shareholders’ equity in the consolidatee enjoyable in the eventual controller's consolidated
financial statements as at the consolidation day is taken as the initial investment cost of the long term equity investment;
the difference between the initial investment cost of the long term equity investment and the sum of the book value of the
long term equity investment before the consolidation plus the book value of the consideration newly paid for further
acquiring the shares on the consolidation day is used to adjust the capital reserve; if the capital reserve is not enough for
writing down, the retained earnings should be adjusted. For the equity investment held before the date of consolidation or
the other comprehensive income as recognized from the available-for-sale financial assets, no accounting treatment shall
be taken for time being.
For the long term equity investment acquired through consolidation of enterprises not under the common control, the
consolidation cost as at the acquisition date is taken as the initial investment cost of the long term equity investment. The
consolidation cost is the sum of the assets paid to the buyer, the liabilities incurred or assumed, and the fair value of the
equity securities as issued. The equity which is acquired in steps through a number of transactions and eventually forms
consolidation of enterprises not under the common control shall be treated depending on whether it belongs to "one
package deal": if it belongs to "one package deal", all the transactions shall be taken as a transaction for acquiring the
control power for accounting treatment. If it does not belong to "one package deal", the sum of the book value of the equity
investment in the purchasee originally held plus the newly increased investment cost shall be taken as the initial
investment cost of the long term equity investment calculated according to the cost method. In case the equity originally
held is calculated based on the equity method, the relevant other comprehensive income shall not undergo accounting
treatment for time being. If the equity investment originally held is an available-for-sale financial asset, the balance
between its fair value and the book value and the accumulative movement of the fair value originally counted to other
comprehensive income are transferred to the current profit and loss.
Intermediary fees in connection with audit, law service, appraisal and consulting, etc. incurred to the consolidator or
purchaser and other relevant administrative fees shall be counted to the current profit and income at the time of
incurrence.
The equity investment other than the long term equity investment formed from the enterprise consolidation which is
initially measured based on the cost, such costs are recognized in such ways as the fair value of the equity securities
issued by the Company, the value as specified in the investment contract or agreement, the fair value or the original book
value of the assets exchanged out in the non-monetary asset exchange transactions, or the own fair value of the long term
equity investment, etc. depending on the ways of acquirement of the long term equity investment. The expenses, taxes
and other necessary expenditures directly in connection with the acquirement of the long term equity investment are
counted to the investment costs. For the long term equity investment resulted from the additional investment which may
bring out significant influence upon or joint control over the investee but shall not constitute control, the cost of the long
term equity investment is the sum of the fair value of the equity investment originally held as determined according to the
Accounting Standards for Enterprises No. 22 - Recognition and Measurement of Financial Instruments plus the cost of the
newly increased investment.
(2)Subsequent measurement and recognition of gains and losses
The long-term equity investment with joint control (excluding the composition of the joint operators) or significant influence
on the investee is accounted by using the equity method. and also for the long term equity investment in which the
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Company's financial statements can implement control over the investee by calculation based on the cost method.
① Long term equity investment calculated based on the cost method
In calculation by cost method, the long term equity investment is valuated according to the initial investment cost, and for
additional or recovery of investment, the cost of the long term equity investment is adjusted. Except that the actual
payment or consideration paid at the time of acquiring the investment contains the cash dividend or profit already
announced but not yet distributed, the return on the investment in the reporting period is recognized based on the cash
dividend or profit already announced for distribution by the investee.
② Long term equity investment calculated based on the equity method
When the calculation based on the equity method is used, if the initial investment cost of the long term equity investment
is greater than the share of the fair value of net identifiable assets enjoyable in the investee, the initial investment cost of
the long term equity investment shall not be adjusted; when the initial investment cost is less than the share of the fair
value of net identifiable assets enjoyable in the investee, the balance is counted to the current profit and loss and at the
same time the cost of the long term equity investment is adjusted.
When the equity method is used for calculation, the net gains and losses realized by the investee and the share of the
other comprehensive income enjoyable or sharable shall be respectively used to recognize the return on investment and
other comprehensive income and at the same time the book value of the long term equity investment is adjusted;
according to the profit announced for distribution by the investee or the part of the cash dividend enjoyable upon
calculation, the book value of the long term equity investment is reduced correspondingly. For other change in the net
profit and loss, other comprehensive income and owner's equity other than the profit distribution, the book value of the
long term equity investment is adjusted and counted to the capital reserve. In determining the net profit and loss in the
investee enjoyable, with the fair value of various identifiable assets, etc. in the investee when the investment is acquired
as the base, the net profit of the investee is recognized after adjustment. When the accounting policy and fiscal period
adopted by the investee is different from that of the Company, the investee's financial statements are adjusted according
to the accounting policy and fiscal period adopted by the Company and the return on the investment and other
comprehensive income are recognized on this basis. For the transactions between the Company and its associates or
joint ventures, in case the assets provided or sold do not constitute business, the part calculated based on the proportion
of the unrealized internal transaction gains and losses attributable to the Company shall be offset and the gains and
losses on the investment shall be recognized on this basis. However, the loss from no internal transaction between the
Company and an investee shall not be offset if the loss belongs to impairment of the assets assigned. In case the assets
invested in a joint venture or an associate constitutes business and the investor has acquired the long term equity
investment therefrom but has not achieved the control power, the fair value of the business provided shall be taken as the
initial investment cost of the newly added long term equity investment, the balance between the initial investment cost and
the book value of the business provided shall all be counted to the current gains and losses. In case assets sold by the
Company to its joint ventures or associates constitute business, the balance between the consideration acquired and the
book value of the business shall all be counted to the current gains and losses. In case the asset provided to the Company
by its joint venture or the associate constitutes business, accounting treatment shall be conducted according to the
Enterprise Accounting Standards No. 20 - Enterprise Consolidation and all the amount shall be recognized as the
transaction related gains and losses.
In determining the part of the net loss incurred to the investee to be shared by the Company, the book value of the long
term equity investment and other long term equity which has substantially constituted net investment in the investee shall
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be reduced to the limit of zero. In addition, in case the Company is obliged for extra loss in an investee, the predicted
liabilities shall be recognized according to the obligation predicted to assume and counted to the current gains and losses
in the investment. In case an investee realizes net profit in subsequent periods, the Company shall recover recognition of
the part of income enjoyable after the recognized part of the loss shared by the Company has been made up for with the
part of the benefit enjoyable.
For the long-term equity investment in the associated enterprises and joint ventures held by the Company for the first time
before the implementation of the new accounting standards, if there exists a debit balance of the equity investment related
to the investment, the amount of the straight-line amortization of the original residual maturity is counted to the current
profit and loss.
③ Acquisition of minority equity
In preparation of the consolidated financial statements, the balance between the long term equity investment newly
increased resulted from purchase of minority equity and the share of the net asset continuously calculated commencing
from the date of purchase (or date of consolidation) enjoyable by the subsidiary shall be used to adjust the capital reserve.
In case the capital reserve is not enough for writing-down, the retained earnings shall be adjusted.
④ Disposal of long term equity investment
In a consolidated financial statement, the parent company has partially disposed the long term equity investment in its
subsidiary without losing its control power, the difference between the disposal income of the amount enjoyable in the
subsidiary’s net assets corresponding to the long term equity investment disposed is counted to the owner’s equity. In
case that the parent company has partially disposed the long term equity investment in its subsidiary has caused the
parent company to have lost the control power over the subsidiary, it should be treated according to the accounting policy
as specified in the “method for preparation of consolidated financial statements” of Note V. 5.(2).
If a long term equity investment is disposed under other situation, for the equity disposed, the difference between its book
value and the consideration actually obtained is counted to the current gains and losses.
For the long term equity investment calculated based on the equity method, the other comprehensive income part which
was originally counted to the owner’s equity undergoes accounting treatment according to the corresponding proportion
by using the same base for direct disposal of the relevant assets or liabilities used by the investee. The owner's equity
recognized due to change of the other owners' equity of the investee with the net gains and loss, other comprehensive
income and profit distribution exclusive is carried over into the current gains and losses based on the proportions.
For the long term equity investment, in case the remaining equity after disposal still needs to be calculated according to
the cost method, the other comprehensive income calculated by the equity method or calculated and recognized based on
the standards for recognition and measurement of financial instruments undergoes the accounting treatment by using the
same base as the investee has adopted for direct disposal of the relevant assets or liabilities and carried over to the
current gains and losses according to the proportion; movement of all other owners' equity calculated and determined by
using the equity method with the net gains and losses in the investee's net assets as determined, other comprehensive
income and profit distribution exclusive is carried over to the current gains and losses according to the proportion.
In case the Company has lost the control over an investee due to disposal of partial equity, in preparation of individual
financial statements, the remaining equity after disposal can still implement joint control over or significant influence on the
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investee; the equity method is applied for calculation instead and the said remaining equity is adjusted as if the equity
method was used for calculation commencing from the time of its acquisition; in case the remaining equity after the
adjustment can no longer implement joint control over or significant influence on the investee, the accounting treatment
shall be conducted according to the provisions concerning recognition and measurement of financial instruments; the
balance between the fair value as at the day of losing the control power and the book value is counted to the current gains
and losses. The other comprehensive income calculated by means of the equity method or calculated and recognized
according to the standards for recognition and measurement of financial instruments undergoes accounting treatment on
the same base as the investee has lost control and the investee directly disposes the relevant assets or liabilities. The
movement of the other owner's equity in the investee's net assets calculated and recognized by means of the equity
method is carried over into the current gains and losses at the time of losing the control over the investee with the
exception of the net gains and profit, other comprehensive income and profit distribution. Where, for the remaining equity
after disposal calculated by means of equity method, the other comprehensive income and other owner's equity are
carried over according to the proportion; in case the remaining equity after disposal is recognized and measured based on
the financial instruments, the other comprehensive income and other owner's equity are all carried over.
In case the Company has lost the joint control over or significant influence on the investee due to disposal of partial equity,
the remaining equity after disposal is calculated according to the standards for recognition and measurement of financial
instruments while the balance between the fair value and the book value as at the day when the Company lost its joint
control or significant influence is counted to the current gains and losses. The other comprehensive income from the
original equity investment calculated and recognized by means of the equity method undergoes accounting treatment by
using the same base as the investee directly disposes the relevant assets or liabilities when the calculation based on teh
equity method is terminated; the owner's equity recognized due to the movement of other owner's equity with the
investee's net gains and losses, other comprehensive income and profit distribution exclusive is all transferred into the
current return on investment when the equity method is stopped.
The Company disposes the equity investment in a subsidiary in steps through a number of transactions until it has lost the
control power. If the aforesaid transaction belongs to a one-package transaction, the transactions shall undergo
accounting treatment as a transaction in which the equity investment in a subsidiary is disposed and the control power is
lost. The balance between the first disposal consideration prior to loss of the control power the book value of the long term
equity investment corresponding to the equity disposed is recognized as other comprehensive income first and then all
transferred into the current gains and losses from loss of the control power.
23. Investment based real estate
Measurement model for investment real estate
Measured based on the cost method
Depreciation or amortization method
Investment based real estate refers to the real estate held by the Company which creates rental or added value of capital
or both, including housing and building already let out. Including the land use right which has already been let out, the land
use right held and to be assigned after appreciation, building which has been leased out, etc. In addition, if the Board of
Directors (or similar institution) has a written resolution on the vacant buildings held by the Company for the purpose of
operating the lease, it is clearly stated that they will be used for operating leases and that the intention to hold is no longer
changed in the short term and they are presented as investment-oriented real estate.
Investment-oriented real estate is initially measured according to the cost Investment based real estate is initially
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measured based on the cost. The follow-expenses in connection with the investment based real estate are recorded in the
investment based real estate costs in case the relevant economic benefit may flow into the Company while the costs can
be reliably measured. Other follow-up expenses are recorded in the current gain and loss at the time of incurrence. Other
follow-up expenses are recorded in the current gain and loss at the time of incurrence.
The Company adopts the cost model to make follow-up measurement of the investment based real estate and makes
depreciation or amortization according to the policy of coincidence with housing and building or land use right.
About the impairment test method and method for provision for impairment of the investment-oriented real estate. For the
detail, refer to Note V.31 “Impairment of Long Term Assets”.
When the self-use real estate is transferred into the investment based real estate or the investment based real estate is
transferred into the self-use real estate, the book value prior to the transfer is taken as the entry value after the transfer.
When the application of the investment based real estate is for self-use, the investment based real estate is transferred to
fixed asset or intangible asset commencing from the date of change. When the application of the self-use real estate is
changed into earning rental or increase of capital value, commencing from the date of change, the fixed asset or
intangible asset are transferred into investment based real estate. When conversion takes place, for the investment based
real estate measured by means of the cost module instead, the book value before conversion shall be taken as the entry
value after the conversion; for the investment based real estate measured by means of fair value instead, the fair value as
at the conversion date shall be taken as the entry value after conversion.
When the investment based real estate is disposed or permanently withdrawn from use and it is predicted that it is unable
to earn economic benefit, the recognition of the investment based real estate is terminated. The income from disposal of
investment based real estate, including sale, assignment, discarding or damage, is charged to the current gain and loss
after deduction of the book value and the relevant taxes.
24. Fixed asset
(1) Recognition of fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of services, for rental to others, or for
administrative purposes and have useful lives more than one accounting year. A fixed asset shall be recognized only
when it is probable that economic benefits associated with the asset will flow into the enterprise and the cost of the asset
can be measured reliably. A fixed asset shall be initially measured at actual cost.
(2) Depreciation methods
Categories Depreciation methods Depreciation life Residual rate Yearly depreciation
Plant & buildings Average service life method 20 -35 5.00 2.70-4.80
Machinery & equipment Average service life method 10 5.00-10.00 9.00-9.50
Electronic equipment Average service life method 5 5.00 19.00
Motor vehicle Average service life method 5 5.00 19.00
Other equipment Average service life method 5 5.00 19.00
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Other fixed assets mainly including some tools, furniture.
(3) Basis for recognizing the fixed assets under financing lease, Pricing and Depreciation Methods
The "finance lease" shall refer to a lease that has transferred in substance all the risks and rewards related to the
ownership of an asset. The ownership of it may or may not eventually be transferred. For the fixed assets rented by
means of financing lease, depreciation of the rented assets is provided according to the policy identical to the proprietary
assets. If it is reasonable to be certain that the lessee will obtain the ownership of the leased asset when the lease term
expires, the leased asset shall be fully depreciated over its useful life. If it is not reasonable to be certain that the lessee
will obtain the ownership of the leased asset at the expiry of the lease term, the leased asset shall be fully depreciated
over the shorter one of the lease term or its useful life.
25. Construction-in-process
The cost of construction-in-process is determined according to the actual expenditure incurred for the construction,
including all necessary construction expenditures incurred during the construction period, borrowing costs that shall be
capitalized before the construction reaches the condition for intended use and other relevant expenses.
Construction-in-process is transferred to fixed assets when the asset is ready for its intended use.
For provision for impairment of construction-in-process and the method for provision for impairment, refer to Note V.31
“Impairment of Long Term Assets”.
26. Borrowing Costs
Borrowing costs include interest on borrowings, amortization of depreciation or premium, auxiliary expenses and balance
of exchange resulted from foreign currency loan, etc. he borrowing costs from acquisition or production of the assets or
borrowing expenses result therefrom directly attributable to compliance with the condition of capitalization starts to be
capitalized when the expense of the asset has incurred, borrowing costs have incurred and the acquisition and
construction or production activities necessary to let the asset reach the predicted applicable or sellable status; when the
assets acquired, constructed or produced in compliance with capitalization have reached the predicted applicable status
or sellable status, the capitalization stops. The other borrowing costs are recognized as expenses in the period of
incurrence.
Interest expenses of special borrowings incurred actually for the current period less interest income from borrowings at
bank or investment income from temporary investments is capitalized; capitalization amount is determined as
accumulative asset expenditure of general borrowings over weighted average asset expenditure of special borrowings
multiples capitalization rate of general borrowings. Capitalization rate is determined as calculating weighted average
interest rate of general borrowings.
In the capitalization period, exchange differences of special borrowings in foreign currency is totally capitalized; exchange
differences of general borrowings in foreign currency is recognized in profit or loss for the current period.
The assets in compliance with the capitalization conditions refer to such assets as fixed assets, investment based real
estate, inventories, etc. which need to undergo long time of acquisition or construction or production activities before they
can reach the predicted applicable or sellable status.
Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or production of a
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qualifying asset is interrupted abnormally and when the interruption is for a continuous period of more than 3 months until
the acquisition or construction or production activities of the assets restart.
27. Biological Assets
Inapplicable
28. Oil and Gas Assets
Inapplicable
29. Use right assets
Inapplicable
30. Intangible assets
(1) Pricing Method, Service Life and Impairment Test
An intangible asset refers to a recognizable non-monetary asset without physical form possessed by or under the control
of the Company.
Intangible assets are initially measured according to cots. The expenditure in connection with intangible assets is
recorded in the costs of the intangible assets in case the relevant economic benefit may flow into the Company while the
costs can be reliably measured. Other expenses are recorded in the current gain and loss at the time of incurrence.
The land use right acquired is usually calculated as intangible asset. For the buildings, such as factory building,
constructed independently, the expenses in connection with the land use right and the construction cost of such building
are calculated as intangible asset and fixed assets. For purchased housing and buildings, the relevant costs are
distributed between the land use right and buildings; in case it is difficult to distribution rationally, they shall all be handled
as fixed assets.
An intangible asset with limited service life is amortized in average by using the straight-line method over the predicted
service life with its original value less the predicted residual value and the accumulated amount of the reserve for
impairment already provided commencing from the time of availability for use. The intangible asset with unidentified
service life would not be amortized.
The method for amortization of intangible assets with limited service life is as follows:
Categories Useful Life (Year) Amortization Method
Land use right 50 Straight-line method
Software system 5 Straight-line method
Trademark rights 5-10 Straight-line method
At the end of a year, the Company rechecks the service life of the intangible asset and the amortization method. The
change incurred is treated as change of accounting estimation. In addition, the Company also rechecks the service life of
the intangible assets with indefinite service life, In case there is evidence showing that the time limit in which such
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intangible asset may bring about economic interest to the Company is predictable, the service life has to be estimated and
the amortization is conducted according to the amortization policy of intangible assets with limited service life.
About the impairment test method and method for provision for impairment of the intangible assets. For the detail, refer to
Note V.31 “Impairment of Long Term Assets”.
(2) Accounting policy for internal research and development expenditure
Expenditure on an internal research and development project is classified into expenditure on the research phase and
expenditure on the development phase.
Expenditure on the research phase is recognized in profit or loss when incurred.
Expenditure on the development phase is capitalized only when the Company can satisfy all of the following conditions:
① the technical feasibility of completing the intangible asset so that it will be available for use or sale;
② its intention to complete the intangible asset is to use or sell it; how the intangible asset will generate economic
benefits;
③ Way of intangible assets producing economic interest, including those that can demonstrate the existence of a market
for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the
intangible asset;
④ The availability of adequate technical, financial and other resources to complete the development and the ability to use
or sell the intangible asset;
⑤ Its ability to measure reliably the expenditure attributable to the intangible asset during its development phase.
If it is impossible to distinguish research stage expenses and development stage expenses, the R & D expenses as
incurred shall be all charged to the current gains and losses.
31. Impairment of long term assets
For non-current and non-financial assets such as fixed assets, construction-in-process, intangible assets with limited
service life, investment based real estate measured based on the cost model, the long term equity investment in
subsidiaries, joint ventures and associates, etc., the Company make judgment on whether there exists any sign of
impairment on balance sheet day. In case there exists a sign of impairment, the Company estimates the recoverable
amount and makes impairment test. For goodwill and the intangible assets with the service life undetermined and the
intangible assets which have not reached applicable status, regardless whether there exists sign of impairment, the
Company makes impairment test every year.
In case impairment test result shows that the recoverable amount of asset is lower than the book value, provision for
impairment is made based on the difference and is regarded in the loss for impairment. The recoverable amount is
determined based on the higher of the net amount of the fair value of the asset less the expense of disposal and the
present value of the predicted future cash flow of the asset. The fair value of assets is determined based on the sales
agreement price in fair transaction; in case there is no sales agreement but does exist active market of asset, the fair
value is determined according to the buyer’s offer of the asset; in case there exists neither sales agreement nor active
market of asset, the fair value of assets is estimated based on the best information obtainable. The disposal expenses
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include legal expenses, relevant taxes, handling fee and direct expenses incurred before the asset reaches the sellable
status in connection with disposal of the assets. For the present value of the predicted future cash flow of assets, with
reference to the predicted future cash flow generated in process of sustained use and final disposal, a proper discount
rate is chosen to determine the amount after the discount. Provision for impairment of asset is calculated and recognized
based on the individual asset. In case it is difficult to make estimation of the recoverable amount of individual asset, the
recoverable amount of asset group is determined based on the asset group which the asset belongs to. The asset group
is the minimum grouping of assets which can independently produce cash flow in.
For the goodwill separately stated in the financial statements, at the time of impairment testing, the book value of the
goodwill is apportioned to the asset group or combination of asset groups of assets benefited from the synergistic effect of
enterprise consolidation. In case the testing result shows that the recoverable amount of an asset group or combination of
asset groups which contain apportioned goodwill is lower than their book value, the corresponding impairment loss is
recognized. The amount of the impairment loss first offsets and is apportioned to the book value of the goodwill of the
asset group or combination of asset groups, and then offset the book value of other assets according to the proportions of
other various assets in the book value with the exception of goodwill in the asset group or combination of asset groups.
The impairment loss of the aforesaid assets, once recognized, shall not be reversed as the recovered part in subsequent
periods.
32. Long term expenses to be apportioned
Long term expenses to be apportioned refer to various expenses which have already incurred but should be borne in the
reporting period and subsequent periods with the apportioning term exceeding one year. The Company's long term
expenses to be apportioned include the special counter fabrication cost, repairing fee, etc. Long term expenses to be
apportioned are amortized according to the straight-line method in the predicted beneficial period.
33. Contract liabilities
Inapplicable
34. Employees’ Wages and Salaries
(1) Accounting treatment of short term salaries
Short term salaries mainly include wages, bonus, allowances and subsidy, welfare expenses to employees, medical
insurance premium, birth insurance premium, work related injury insurance premium, housing fund, labor union dues and
employees' personnel education fund, non-monetary welfare, etc. The Company recognizes the short term salaries to
incur during the fiscal periods when employees offer services to the Company as liabilities and count the same to the
current gains and losses or the relevant cost of assets. Of them, non-monetary welfare is measured based on the fair
value.
(2) Post-employment benefits
The post-employment benefits mainly include the basic endowment insurance, unemployment insurance, annuity, etc.
Post-employment benefit program includes defined contribution plan. In case the defined contribution plan is used, the
corresponding contributable amount is counted to the corresponding asset cost or the current gains and losses at the time
of incurrence.
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(3) Dismissal welfare
In case the labor relationship with an employment is terminated prior to the expiry of an employee's labor contract, or in
case the Company proposes a compensation plan for encouraging employees to volunteerly accept lay-off, the liability of
remuneration to employees arising from post-service benefit is recognized in the current gains and losses at the earlier
of the following conditions: when the Company cannot unilaterally withdraw the offer of post-service benefit provided for
the purpose of the plan of termination of the labor relationship or proposal of lay-off, and when the Company recognizes
any related restructuring costs or expenses in connection with the payment of the post-service benefit. However, if the
termination benefits are predicted to be unable to be fully paid within 12 months after termination of the annual reporting
period, it shall be handled according to the other long term payroll to employees.
(4) Other long term employees' welfare
The internal retirement program for employees is handled based on the same principle as that for the aforesaid Dismissal
welfare. The Company plans to count the salaries paid to the internally retired employees and their social insurance
premium paid by the Company from the date when the concerned employees stops offering services to the Company to
the time of their official retirement to the current gains and losses (post-service benefit ) when they comply with the
conditions for recognizing the predicted liabilities.
Other long term employees' welfare provided by the Company to its employees shall undergo the accounting treatment
according to the defined contribution plan as long as it complies with the defined contribution plan. With the exception of
this, it shall undergo accounting treatment according to the defined beneficial plan.
35. Lease liabilities
Inapplicable
36. Predicted liabilities
Predicted liabilities are recognized when an obligation in connection with contingencies complies with the following
conditions: (1) The obligation is a present obligation of the Company; (2) It is probable that an outflow of economic
benefits will be required to settle the obligation; (3) The amount of the obligation can be measured reliably.
On the balance sheet day, with consideration of such factors as contingency related risk, uncertainty and the time value of
money, etc., the predicted liabilities are measured according to the best estimated amount necessary to be paid in
implementation of the relevant current obligation.
If the expenses for clearing of predictive liability is fully or partially compensated by a third party, and the compensated
amount can be definitely received, it is recognized separated as asset. The compensated amount shall not be greater
than the carrying amount of the predictive liability.
(1) Loss contract
A loss contract is a contract in which the cost unavoidably exceeds the expected economic interest in implementing the
contract obligations. If the contract to be executed becomes a loss contract, and the obligation arising from the loss
contract satisfies the conditions for the confirmation of the above-mentioned estimated liabilities, the part of the contract’s
estimated loss that exceeds the recognized impairment loss (if any) of the contracted asset is recognized as the estimated
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liability.
(2) Obligation of reorganization
For a reorganization plan that is detailed, formal, and has been announced to the public, the estimated liabilities are
determined based on the direct expenses related to the reorganization, subject to the recognition conditions of the
aforementioned estimated liabilities.
37. Share-based payment
(1) Accounting treatment method for the share-based payment
Share-based payment is a transaction that grants an equity instrument or assumes a liability determined on the basis of
an equity instrument in order to obtain services from employees or other parties. Share-based payments are divided into
equity-settled share-based payment and cash-settled share-based payment.
① An equity-settled share-based payment
Share-based payment settled with equity in exchange for services provided by employees is measured with the fair value
of the employee's equity instruments at the grant date. This amount of the fair value, if the right cannot be exercised until
the vesting period comes to an end or until the prescribed performance conditions are met, with the best estimate of the
quantity of the exercisable equity instrument as the base within the vesting period, is counted to the relevant cost or
expense calculated based on the straight-line method/when the right is exercisable immediately after granting, it is
counted to the relevant cost or expenses on the date of the grant and the capital reserve increases correspondingly.
On each balance sheet day during the vesting period, the Company may make best estimate based on the subsequent
information, such as the movement of the number of employees eligible for exercising the wrights as latest obtained and
the number of the equity instrument of the predicted exercisable is corrected. The influence of the aforesaid estimate is
counted to the current relevant cost or expense and the capital reserve is adjusted correspondingly.
Share-based payment in exchange for services from other parties: if the fair value of the services from other parties can
be reliably measured, the share-based payment is measured according to the fair value of the services from other parties
as at the date of the acquisition. If the fair value of the services from other parties cannot be reliably measured while the
fair value of the equity instrument can be reliably measured, the share-based payment is measured according to the fair
value of the equity instrument as at the date of the acquisition of the service and counted to the relevant cost or expense
and the shareholder's equity increases correspondingly.
② Cash-settled share-based payment
The cash-settled share-based payment is measured at the fair value of the liabilities assumed by the Company
determined and based on shares and other equity instruments. If the right is exercisable immediately after the grant, the
cash-settled share-based payment is counted in the relevant costs or expenses on the date of the grant date, and the
liabilities increase accordingly; if the services within the waiting period must be completed or the required performance
conditions are met, the fair value of the liabilities assumed by the Company is based on the best estimate of the vesting
rights on each balance sheet day of the waiting period. The services obtained in the current period are included in the cost
or expense, and the liabilities increase accordingly.
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The fair value of the liabilities is re-measured and the movement is counted in the current profits and losses on each
balance sheet day and settlement day before the settlement of related liabilities.
(2) Relevant accounting treatment for amendment or termination of the share-based payment plan
When the Company amends the share-based payment plan, if the amendment increases the fair value of the equity
instruments granted, the increase of the services obtained is recognized accordingly based on the increase of the fair
value of the equity instruments. Increase of the fair value of the equity instrument refers to the difference between the fair
value of the equity instrument on the amendment day before and after the amendment. If the modification reduces the
total fair value of the share-based payment or adopts any other method unfavorable to the employees, the service
obtained will continue to undergo accounting treatment, unless the Company cancels part or all of the granted equity
instruments.
If the Company cancels the granted equity instrument during the vesting period, the Company shall treat it as accelerated
vesting, the amount which should be recognized during the remaining vesting period is counted to the current profit and
loss immediately and at the same time the capital reserve is recognized. If an employee or other party can choose to meet
the non-vesting conditions but fails to meet the vesting period, the Company treats it as a cancellation of the granted
equity instrument.
(3) Accounting treating involving the share-based payment transaction of the Company, the Company’s
shareholders or actual controller
In respect of the share-based payment transaction between the Company and the Company's shareholders or its actual
controller, of the settlement enterprise and the enterprise receiving services, one is in the Company, and the other is
outside the Company, and the accounting is carried out in the Company's consolidated financial statements according to
the following provisions:
① In case the settlement enterprise conducts the settlement with its own equity instrument, the share-based payment
transaction shall be treated as equity-settled share-based payment; otherwise, it shall be treated as a cash-settled
share-based payment.
In case the settlement enterprise is the investor of the enterprise receiving services, the fair value of the equity instrument
as at the granting date or the fair value of the liabilities necessary to be assumed is recognized as the long term equity
investment in the enterprise receiving the services; at the same time the capital reserve (other capital reserve) or liabilities
is recognized.
① In case the enterprise receiving services has no obligation of settlement or what it grants its employees is its own
equity instrument, the share-based payment transaction shall be treated as equity-settled share-based payment; in case
the enterprise receiving services have the settlement obligation and what it grants its employees equity instrument of not
its own, such share-based payment transaction shall be treated as a cash-settled share-based payment.
In case the share-based payment transaction takes place among the enterprises within the Company while the enterprise
receiving the service and the settlement enterprise are not the same enterprise, the respective confirmation and
measurement of the share-based payment transaction in the individual financial statements of the enterprise receiving the
services and the settlement enterprise are treated with reference to the above principles.
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38. Other financial instruments, such as preferred shares, perpetual liabilities, etc.
Inapplicable
39. Revenue
Does the Company need to comply with the requirements on information disclosure for special industries?
No
Has the new standard for income been implemented
No
(1) General Principle
① Sale of goods
Revenue from the sale of goods is recognized only when all of the following conditions are satisfied: the Company has
transferred to the buyer the significant risks and rewards of ownership of the goods, the Company retains neither
continuing managerial involvement nor effective control over the goods sold, and related income has been achieved or
evidences of receivable have been obtained, and the associated costs can be measured reliably.
②Providing of services
Where the outcome of a transaction involving the provision of services can be estimated reliably, at the end of the period,
revenue associated with the transaction is recognized using the percentage of completion method. The stage of
completion of a transaction involving the providing of services is determined according to the proportion of the services
performed to the total services to be performed.
Reliable measurement of the result of the labor service transaction provided refers to that it can satisfy at the same time:
①. The amount of revenue can be measured reliably; ②. The associated economic benefits are likely to flow into the
enterprise; ③. The stage of completion of the transaction can be measured reliably; ④. The costs incurred and to be
incurred in the transaction can be measured reliably.
If the outcome of a transaction involving the providing of services can’t be estimated reliably, the revenue of providing of
services is recognized at the service cost that incurred and is estimated to obtain compensation and the service cost
incurred is recognized in profit or loss for the current period. If the service cost incurred is estimated to obtain
compensation, revenue isn’t recognized.
When a contract or agreement signed between the Company and other enterprise covers sales of goods and supply of
labor service, in case the part of sales of goods and the part of providing labor service are distinguishable and can be
measured separately, the part of sales of goods and the part of providing labor service should be treated separately; in
case the part of sales of goods and the part of providing labor service cannot be distinguished or cannot be separately
measured despite that they are distinguishable, all the contract shall be treated as sales of goods.
③ Royalty revenue
Revenue is recognized on accrual basis according to the relevant contract or agreement.
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④ Interest income
The interest income shall be calculated based on the tenure of the Company’s monetary funds used by others and the
actual interest rates used.
40. Government subsidies
Government subsidy refers to the monetary asset and non-monetary asset obtained free by the Company from the
government, excluding the capital invested by the government in the corresponding owner's equity enjoyable by the
government as the investor. Government subsidy consists of asset-related government subsidy and income-related
government subsidy. The government subsidy related to assets refers to government subsidy obtained by the Company
for the purpose of purchasing or constructing or otherwise forming long-term assets in other way; the remaining
government subsidy refers to the government subsidy related to the income. If the government documents do not clearly
define the object of subsidy, the subsidy shall be divided into the government subsidy related to income and the
government subsidy related to assets in the following ways: (1) If the government document specifies the specific project
for which the subsidy is targeted, the budget of the project will be divided into the relative proportion of the expenditure
amount of the assets and the expenses included in the expenses, and the division ratio shall be reviewed on each balance
sheet date and changed when necessary; (2) If the government documents use only for general statement, and not
specify a specific project, it will be as income-related government grants. If a government grant is in form of monetary
asset, it is measured at the amount received or receivable. If a government grant is in the form of non-monetary asset, is
measured at fair value; if the fair value cannot be measured reliably, it is measured at a nominal amount. The government
subsidy measured at a nominal amount is directly counted to the current profit and loss.
The Company usually confirms and measures government grants according to the actual amount received. If there is
evidence at the end of the period that the Company can meet the relevant conditions stipulated by the financial support
policy and is expected to receive financial support funds, the government subsidy will be recognized according to the
receivable amount. The government grants measured according to the receivable amount shall meet the following
conditions at the same time: (1) The amount of the grants receivable has been authorized by the government department
to issue the documents or can be reasonably measured according to the relevant provisions of the formally promulgated
financial capital management measures; (2) It is based on the financial
support items formally promulgated by the local finance department and proactively disclosed in accordance with the
provisions of the "Regulations Governing the Disclosure of Government Information" and the fiscal fund management
measures, and the management measures should be generalized (any eligible enterprises can apply), rather than
specifically for a specific company; (3) the relevant grant approval has been clearly committed to the deadline for
disbursement, and the disbursement of funds has corresponding budget as a guarantee, so that it can reasonably ensure
that it can be received within the prescribed time limit; (4) Other relevant conditions (if any) that should be satisfied
according to the Company and the specific circumstances of the grants.
A government grant related to asset is recognized as deferred income, and evenly amortized and charged to profit or loss
over its useful life. If a government grant related to income is used to compensate related expenses and losses in
subsequent periods, it is recognized as deferred income and charged to current profit or loss when recognize the relevant
cost and expense or loss; if it is used to compensate related expenses and losses that are already incurred, it is charged
to current profit or loss directly.
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Government grants including assets-related parts and income-related parts at the same time should be treated separately.
If it is difficult to distinguish them, they will be classified as income-related government grants completely.
The government subsidy related to the daily activities of the Company are included in other income; the government
subsidy not related to the daily activities of the Company are included in the non-operating income and expenditure.
If a government grant already recognized needs to be repaid, the carrying amount of related deferred income, if any, is to
be reduced. Any excess are charged to current profit or loss. If there is no deferred income, the repayment is charged to
current profit or loss directly.
41. Deferred income tax asset/deferred income tax liability
(1) Income tax in the reporting period
At the balance sheet date, the current income tax liabilities (or asset) formed in the reporting period and previous periods
are measured based on the income tax amount predicted payable (or returnable) as calculated according to the tax law.
The taxable income amount based on which the current income tax expense is calculated is worked out after the
corresponding adjustment of the pretax accounting profit during the reporting period according to the relevant provisions
of the tax law.
(2) Deferred income tax asset and deferred income tax liability
The balance between the book value of some assets and liability items and their tax base and the provisional difference
arising from the balance between the book value of the items which have not been taken as asset and liability but may be
determined as tax base according to the tax law are recognized as deferred income tax asset and deferred income tax
liability by means of the debt method based on balance sheet.
The taxable provisional difference which is connected with the initial recognition of goodwill and the initial recognition of
the asset or liability arising from the transaction which is neither enterprise consolidation nor influences the accounting
profit and taxable income amount (or may be used to offset loss) at the time of incurrence are not recognized as relevant
deferred income tax liability. In addition, as to the taxable provisional difference in connection with investment in the
subsidiaries, associates and joint ventures, if the Company can control the time of reversal of the provisional difference
while such provisional difference may be possibly unable to be reversed in the foreseeable future and the relevant
deferred income tax liability shall not be recognized either. With the exception of the aforesaid situation, the Company
recognizes the deferred income tax liability arising from other taxable provisional difference.
The offsetable provisional difference which is connected with the initial recognition of the asset or liability (or may be used
to offset loss) arising from the transaction which is neither enterprise consolidation nor influences the accounting profit and
taxable income amount is not recognized as the relevant deferred income tax asset. In addition the offsetable provisional
difference in connection with investment in the subsidiaries, associates and joint ventures, in case such provisional
difference may be possibly unable to be reversed in the foreseeable future, or it is not highly possible to obtain taxable
income amount which can be used to offset the offsetable provincial difference in future, shall not be recognized as the
relevant deferred income tax asset. With the exception of the aforesaid situation, the Company recognizes the deferred
income tax asset arising from the other offsetable provisional difference only with the taxable income amount which may
possibly be obtainable for offsetting the offsetable provisional difference.
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For the offsetable loss and tax payment write-down which may be carried over to the future years, only the future taxable
income amount which may be obtainable and used to offset the offsetable loss and write down the tax payment may be
recognized as the corresponding deferred income tax asset.
At the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected
to apply to the period when the asset is realized or the liability is settled according to the tax law.
At the balance sheet date, the Company reviews the carrying amount of a deferred tax asset. If it is probable that sufficient
taxable profits will not be available in future to allow the benefit of the deferred tax asset to be utilized, the carrying amount
of the deferred tax asset is reduced. Any such reduction in amount is reversed when it becomes probable that sufficient
taxable profits will be available.
(3) Income tax expense
Income tax expense includes the current income tax and deferred income tax.
Except that the current income tax and deferred income tax in connection with other comprehensive income or the
transactions and matters which are directly stated in the shareholders' equity are counted to the other comprehensive
income or shareholder's equity and the deferred income tax arising from enterprise consolidation is used to adjusted the
book value of goodwill, all the other current income tax and deferred income tax expenses or income are counted to the
current gains and losses.
(4) Income Tax Offsetting
In case the Company has legal right to make netting and is desirous to make netting or obtain assets and settle liabilities
at the same time, the Company may present the net amount after offsetting the current income tax liabilities with the
current income tax assets.
In case the Company has legal right to settle the current income tax asset and current income tax liability in net while the
deferred income tax asset and the deferred income tax liability are related to the income tax which is collected by the
same tax collection and administration authority from the same tax payer or related to the different tax payer, but during
the period in future when each significant deferred income tax asset and liability are reversed, the Company present the
deferred income tax asset and deferred income tax liability in net after offsetting when it involves the tax payer's desire to
settle the current income tax asset and liability or obtaining asset and satisfying liability in net.
42. Lease
(1) Accounting process for operating lease
The "finance lease" shall refer to a lease that has transferred in substance all the risks and rewards related to the
ownership of an asset. The ownership of it may or may not eventually be transferred. Other lease except the financing
lease is operational lease
① The Company records the operational lease business as the tenant
Rental payment of operational lease is recorded in the relevant asset cost or current gain and loss based on the straight
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line method over various fiscal periods within the lease term. The initial direct expense is recorded in the current gain and
loss. Contingent rental is recorded in the current gain and loss when it actually incurs.
② The Company records the operational lease business as the lessor
The rental income of the operational lease is recorded in the current gain and loss according to the straight line method in
different periods within the lease term. The initial direct expense with bigger amount is capitalized at the time of incurrence
and is recorded in the current gain and loss periodically according to the same base in recognizing the rental income
during the lease term; other initial direct expense with smaller amount is recorded in the current gain and loss at the time
of incurrence. Contingent rental is recorded in the current gain and loss when it actually incurs.
(2) Accounting treatment method for finance lease
① As lessor
At the beginning date of lease period, the Company will recognize the lower of the fair value of the lease asset at the
beginning of the lease and the present value of the minimum amount of rent payment as the entry value of rent asset;
takes the minimum rent payment as the entry value of long term account payable and its balance as the unrecognized
financial charges. In addition, when the lease negotiation takes place in the same process of conclusion of lease contract,
the initial direct expenses attributable to lease item are also counted to the value of rent asset. The balance of the
minimum rent payment amount less the unrecognized financial charges is respectively stated on the long term liabilities
and the long term liabilities due within a year.
Unrecognized financial charges are recognized in the current financing expenses by using the actual interest rate method
within the lease term. Contingent rental is recorded in the current gain and loss when it actually incurs.
② As lessee
As at the beginning date of lease period, the Company takes the sum of the minimum amount of the rent collected at the
beginning of the lease and the initial direct expense as the entry value of the finance lease receivable and at the same
time records the unsecured residual value; the recognizes the balance of the sum of the minimum rent collection amount,
initial direct expenses and unsecured residual value and the sum of its present value as the unrealized financing income.
The balance between the receivable rent from finance lease less the unrealized revenue of financing is respectively
presented in the long term claim and the long term claim due within a year.
The unrecognized financial charges are calculated by means of the actual interest rate method within the lease term and
recognized as the current financial expenses. Contingent rental is recorded in the current gain and loss when it actually
incurs.
43. Other important accounting policy and accounting estimate
Operation termination
Operation termination refers to the components which can satisfy one of the following conditions, can be separately
distinguished and have been disposed or classified as the category of held-for-sale by the Company: ① this component
represents an independent major business or an independent major operation region; ② this component is a part of a
related plan for an independent principal business or an independent principal operation region; ③ this component is a
subsidiary acquired exclusively for resale.
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About the accounting treatment method for operation termination, refer to the relevant description of Note V.18
“Held-for-sale assets and disposal group”
44. Changes in significant accounting policies and accounting estimates
(1) Change in significant accounting policies
Contents and cause of the change in the Examination and approval Time of starting the
Remarks
accounting policy procedures application
On March 31, 2017, the Ministry of Finance
revised the Accounting Standards for
Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments,
the Accounting Standards for Business
Enterprises No. 23 - Transfer of Financial
Assets and the Accounting Standards for
The change in the relevant
Business Enterprises No. 24 - Hedging
accounting policy was
Accounting CAI KUAI (2017) No. 7, 8 and 9
approved at the 8th session For the detail, refer to
respectively; on May 2, 2017, the Ministry January 1, 2019
of the Ninth Board of Explanation I
of Finance revised the the Accounting
Directors of the Company on
Standards for Business Enterprises No. 37
April 19, 2019.
- Presentation of Financial Instruments. In
process of preparing the financial
statements of the first half of 2019, the
Company implemented the relevant
accounting standards and made treatment
according to the relevant connecting
provisions.
On April 30, 2019, the Ministry of Finance
revised the Circular on Issuing the
Amended General Corporate Financial
Statement Templates for the Year 2019
CAI KUAI (2019) No. 6, according to which
the items of Accounts Receivable and
The change in the relevant
Notes Receivable are split into “Accounts
accounting policy was
Receivable” and “Notes Receivable”;
approved at the 10th session For the detail, refer to
“Accounts Payable and Notes Payable” are April 30, 2019
of the Ninth Board of Explanation II
split into “Accounts Payable” and “Notes
Directors of the Company on
Payable”; the presentation details of the
April 13, 2019.
items of “Interest Income”, “Other Income”,
“Income from Disposal of Assets”,
“Non-operating Income” and
“Non-operating Expenses” under the items
of “Other Receivables”, “Non-current
Assets due in a Year”, “Other Payables”,
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“Deferred Income”, “R & D Expenses,” and
“Financial Expenses” have been specified
or revised. For the enterprises that have
implemented the new standards for
financial instruments, the item
“Receivables Financing” is added to reflect
the notes receivable and accounts
receivable that are measured at fair value
under the new standards for financial
instruments and whose changes are
included in other comprehensive income.
The newly added “the Income from
Derecognition of Financial Assets
Measured at the Amortized Cost” is used to
reflect the profit or loss arising from the
derecognition of financial assets measured
at amortized cost. For the change of the
aforesaid presented items, the Company
adopts the retrospective adjustment
method to make accounting changes, and
retrospectively adjusts the data in
comparable accounting periods.
Explanation I: Influence from the implementation of the new standards for financial instruments
The main impacts of the change in the accounting policies arising from the above new standards for financial instrument
on the financial statements of January 1, 2019 are as follows:
Consolidated Financial Statements:
Book value as presented
Book value as presented
according to the original
Reclassified according to the new standards
standards (December 31,
(January 1, 2019)
2018)
Available-for-sale
financial assets 85,000.00 -85,000.00
Investment in other
equity instruments 85,000.00 85,000.00
Financial Statements, Parent Company
Book value as presented
Book value as presented
according to the original
Reclassified according to the new standards
standards (December 31,
(January 1, 2019)
2018)
Available-for-sale
financial assets 85,000.00 -85,000.00
Investment in other
equity instruments 85,000.00 85,000.00
Explanation II: In accordance with the Circular on Revising and Issuing the 2019 Versions of General Corporate
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Financial Statement Templates (CAI KUAI [2019] No. 6], the accounting policy for these financial statement templated has
been updated. In addition to the change of the items involved in the aforesaid standard, other statement items and the
corresponding amount affected are as follows:
Description of the statement items affected Amount affected
Administrative expenses in the half year of 2018 (consolidated financial Reduced by CNY
statements) 21,285,926.02
Increased by CNY
R & D expenses in the half year of 2018 (consolidated financial statements) 21,285,926.02
Administrative expenses in the half year of 2018 (the parent company's Reduced by CNY
financial statements) 10,322,178.15
R & D expenses in the half year of 2018 (the parent company's financial Increased by CNY
statements) 10,322,178.15
Notes receivable and accounts receivable as at December 31, 2018 Reduced by CNY
(consolidated financial statements) 377,597,503.46
Increased by CNY
Notes receivable as at December 31, 2018 (consolidated financial statements) 7,051,846.85
Accounts receivable and accounts receivable as at December 31, 2018 Increased by CNY
(consolidated financial statements) 370,545,656.61
Notes payable and accounts payable as at December 31, 2018 (consolidated Reduced by CNY
financial statements) 259,913,612.34
Accounts payable as at December 31, 2018 (consolidated financial Increased by CNY
statements) 259,913,612.34
Notes receivable and accounts receivable as at December 31, 2018 (the Reduced by CNY
parent company's financial statements) 737,636.38
Accounts receivable as at December 31, 2018 (the parent company's financial Increased by CNY
statements) 737,636.38
Notes payable and accounts payable as at December 31, 2018 (the Reduced by CNY
Company's financial statements) 52,324,191.98
Increased by CNY
Notes payable as at December 31, 2018 (the Company's financial statements) 52,324,191.98
Note: Explanation on the names and amount of the statement items significantly affected.
(2) Change in significant accounting estimates
Inapplicable
(3) Adjustment of the relevant financial statements at the current year beginning according to the new standards
for financial instruments, the new standards for revenues and the new standards for lease initially implemented
Consolidated Balance Sheet
In CNY
Items December 31, 2018 January 01, 2019 Amount involved in the adjustment
Current assets:
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Monetary capital 164,828,059.97 164,828,059.97
Settlement reserve
Inter-bank lending
Transactional financial assets
The financial assets measured at
fair values with the change counted to
the current profit and loss
Derivative financial assets
Notes receivable 7,051,846.85 7,051,846.85
Accounts receivable 370,545,656.61 370,545,656.61
Financing with accounts
receivable
Advance payment 13,666,816.33 13,666,816.33
Receivable premium
Reinsurance accounts receivable
Reserve for reinsurance contract
receivable
Other receivables 45,870,582.26 45,870,582.26
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for
sale
Inventories 1,782,306,301.70 1,782,306,301.70
Contract assets
Held-for-sale assets
Non-current assets due within a
year
Other current assets 73,703,312.24 73,703,312.24
Total current assets 2,457,972,575.96 2,457,972,575.96
Non-current assets:
Loan issuing and advance in
cash
Equity investment
Available-for-sale financial assets 85,000.00 -85,000.00
Other equity investment
Held-to-due investments
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Long term accounts receivable
Long-term equity investment 44,881,063.15 44,881,063.15
Investment in other equity
85,000.00 85,000.00
instruments
Other non-current financial assets
Investment-oriented real estate 377,319,433.03 377,319,433.03
Fixed assets 425,649,562.85 425,649,562.85
Construction-in-progress 12,041,126.00 12,041,126.00
Productive biological asset
Oil and gas assets
Use right assets
Intangible assets 43,545,477.61 43,545,477.61
Development expenses
Goodwill
Long-term expenses to be
128,572,545.15 128,572,545.15
apportioned
Deferred income tax asset 100,675,706.09 100,675,706.09
Other non-current assets 8,949,160.42 8,949,160.42
Total non-current assets 1,141,719,074.30 1,141,719,074.30
Total assets 3,599,691,650.26 3,599,691,650.26
Current liabilities:
Short term borrowings 547,118,452.97 547,118,452.97
Borrowings from central bank
Loans from other banks
Transactional financial liabilities
The financial liabilities measured
at fair values with the change counted
to the current profit and loss
Derivative financial liabilities
Notes payable
Accounts payable 259,913,612.34 259,913,612.34
Advance receipts 16,459,445.00 16,459,445.00
Money from sale of the
repurchased financial assets
Deposits taking and interbank
placement
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Acting trading securities
Income from securities
underwriting on commission
Payroll payable to the employees 69,779,037.83 69,779,037.83
Taxes payable 55,923,171.92 55,923,171.92
Other payables 71,819,930.30 71,819,930.30
Including: interest payable 772,351.26 772,351.26
Dividends payable
Service charge and commission
payable
Payable reinsurance
Contract liabilities
Held-for-sale liabilities
Non-current liabilities due within a
347,470.00 347,470.00
year
Other current liabilities
Total current liabilities 1,021,361,120.36 1,021,361,120.36
Non-current liabilities:
Reserve for insurance contract
Long-term borrowings 4,517,110.00 4,517,110.00
Bonds payable
Including: preferred shares
Perpetual bond
Lease liabilities
Long-term accounts payable
Long term payroll payable to the
employees
Estimated liabilities
Deferred income 3,672,855.36 3,672,855.36
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities 8,189,965.36 8,189,965.36
Total liabilities 1,029,551,085.72 1,029,551,085.72
Owner’s equity:
Capital stock 438,744,881.00 438,744,881.00
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Other equity instruments
Including: preferred shares
Perpetual bond
Capital Reserve 1,062,455,644.22 1,062,455,644.22
Less: shares in stock
Other comprehensive income -5,442,139.78 -5,442,139.78
Special reserve
Surplus Reserve 223,015,793.80 223,015,793.80
Reserve against general risks
Retained earnings 851,360,603.66 851,360,603.66
Total owners’ equity attributable to the
2,570,134,782.90 2,570,134,782.90
parent company
Minority shareholders’ equity 5,781.64 5,781.64
Total owner’s equity 2,570,140,564.54 2,570,140,564.54
Total liabilities and owners’ equity 3,599,691,650.26 3,599,691,650.26
Note to the Adjustment
In March 2017, the Ministry of Finance promulgated the Circular on Printing and Issuing the Revised “Accounting
Standards for Enterprises No.22–Recognition and Measurement of Financial Instruments”, the Circular on Printing and
Issuing the Revised “Accounting Standards for Enterprises No.23–Transfer of Financial Assets”, the Circular on Printing
and Issuing the Revised “Accounting Standards for Enterprises No.24–Hedging”; on May 2, 2017, the Ministry of Finance
promulgated the Circular on Printing and Issuing the Revised “Accounting Standards for Enterprises No. 37–Presentation
of Financial Instruments” and on June 15, 2018, Notice by the Ministry of Finance of Revising and Issuing the Format of
2018 Consolidated Financial Statements asked the listed companies of A-shares to implement the updated standards for
financial instruments series and the new format of presentation commencing from January 1, 2019. In accordance with
the requirements of the updated standards for new financial instrument series, the Company adjusted the
“available-for-sale financial assets” to “investment in other equity instruments” based on the business model of the
Company's management of financial assets and the contractual cash flow characteristics of financial assets.
Balance Sheet, Parent Company
In CNY
Items Monday, December 31, 2018 January 01, 2019 Amount involved in the adjustment
Current assets:
Monetary capital 137,175,466.27 137,175,466.27
Transactional financial assets
The financial assets measured at
fair values with the change counted to
the current profit and loss
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Derivative financial assets
Notes receivable
Accounts receivable 737,636.38 737,636.38
Financing with accounts
receivable
Advance payment
Other receivables 870,739,378.37 870,739,378.37
Including: Interest receivable
Dividends receivable
Inventories
Contract assets
Held-for-sale assets
Non-current assets due within a
year
Other current assets 10,081,272.94 10,081,272.94
Total current assets 1,018,733,753.96 1,018,733,753.96
Non-current assets:
Equity investment
Available-for-sale financial assets 85,000.00 -85,000.00
Other equity investment
Held-to-due investments
Long term accounts receivable
Long-term equity investment 1,376,129,654.08 1,376,129,654.08
Investment in other equity
85,000.00 85,000.00
instruments
Other non-current financial assets
Investment-oriented real estate 297,042,937.87 297,042,937.87
Fixed assets 297,517,472.81 297,517,472.81
Construction-in-progress 12,041,126.00 12,041,126.00
Productive biological asset
Oil and gas assets
Use right assets
Intangible assets 35,337,052.82 35,337,052.82
Development expenses
Goodwill
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Long-term expenses to be
4,500,638.97 4,500,638.97
apportioned
Deferred income tax asset 952,857.33 952,857.33
Other non-current assets 4,493,971.35 4,493,971.35
Total non-current assets 2,028,100,711.23 2,028,100,711.23
Total assets 3,046,834,465.19 3,046,834,465.19
Current liabilities:
Short term borrowings 505,000,000.00 505,000,000.00
Transactional financial liabilities
The financial liabilities measured
at fair values with the change counted
to the current profit and loss
Derivative financial liabilities
Notes payable
Accounts payable 52,324,191.98 52,324,191.98
Advance receipts 1,636,520.02 1,636,520.02
Contract liabilities
Payroll payable to the employees 11,589,634.34 11,589,634.34
Taxes payable 943,919.26 943,919.26
Other payables 57,997,397.28 57,997,397.28
Including: interest payable 685,419.80 685,419.80
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within a
year
Other current liabilities
Total current liabilities 629,491,662.88 629,491,662.88
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: preferred shares
Perpetual bond
Lease liabilities
Long-term accounts payable
Long term payroll payable to the
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employees
Estimated liabilities
Deferred income 3,672,855.36 3,672,855.36
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities 3,672,855.36 3,672,855.36
Total liabilities 633,164,518.24 633,164,518.24
Owner’s equity:
Capital stock 438,744,881.00 438,744,881.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital Reserve 1,068,111,185.32 1,068,111,185.32
Less: shares in stock
Other comprehensive income
Special reserve
Surplus Reserve 223,015,793.80 223,015,793.80
Retained earnings 683,798,086.83 683,798,086.83
Total owner’s equity 2,413,669,946.95 2,413,669,946.95
Total liabilities and owners’ equity 3,046,834,465.19 3,046,834,465.19
Note to the Adjustment
In March 2017, the Ministry of Finance promulgated the Circular on Printing and Issuing the Revised “Accounting
Standards for Enterprises No.22–Recognition and Measurement of Financial Instruments”, the Circular on Printing and
Issuing th Revised “Accounting Standards for Enterprises No.23–Transfer of Financial Assets”, the Circular on Printing
and Issuing the Revised “Accounting Standards for Enterprises No.24–Hedging”; on May 2, 2017, the Ministry of Finance
promulgated the Circular on Printing and Issuing the Revised “Accounting Standards for Enterprises No. 37–Presentation
of Financial Instruments” and on June 15, 2018, Notice by the Ministry of Finance of Revising and Issuing the Format of
2018 Consolidated Financial Statements asked the listed companies of A-shares to implement the updated standards for
financial instruments series and the new format of presentation commencing from January 1, 2019. In accordance with
the requirements of the updated standards for new financial instrument series, the Company adjusted the
“available-for-sale financial assets” to “investment in other equity instruments” based on the business model of the
Company's management of financial assets and the contractual cash flow characteristics of financial assets.
(4) Note to the retroactive adjustment of the previous comparative data according to the new standards from
financial instruments and the new standards for lease initially implemented
Items to be adjusted Amount involved in the adjustment
Add the item of credit impairment loss to the income statement, and reclassify During the reporting period, the credit impairment loss amounted to CNY
part of the impairment loss of assets related to receivables to the credit -3,081,768.89, the asset impairment loss of the previous period was adjusted
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impairment loss down by CNY -5,178,800.41 and credit impairment loss was adjusted up by
CNY 5,178,800.41.
Note: When the Company makes retrospective adjustment of the amount involved in the first implementation of the new
accounting standards and adjusts the comparison data of the previous period, it was necessary to disclose the name and
adjustment amount of the financial statement items involved in the adjustment.
45. Others
Inapplicable
VI. Taxation
1. Types of major taxes and tax rates
Type of taxes Tax basis Tax rates
For taxable income, the output VAT is
calculated based on the rate of 13% and the
Value-added tax VAT is calculated and paid based on the 13%
difference after deduction of the input VAT
offsetable in the very period.
For the high-grade watch at the price higher
than CNY 10,000 (with CNY 10,000 inclusive)
Consumption tax 20%
imported or produced, the consumption tax is
calculated and payable.
The urban maintenance and construction tax is
Urban maintenance and construction tax 7%
based on 7% of the turnover tax actually paid
Corporation income tax Taxable income amount 15%-30%
1.2% of 70% of the cost of the property or 12%
Real estate tax 1.2% and 12%
of the rental income
In case there exist taxpayers subject to different corporate income tax rates, disclose the information.
Taxpayers Income tax rates
The Company (Notes① and ②) 25%
Harmony (Notes①) 25%
the Manufacture Co. (Notes② and ③) 15%
FIYTA Hong Kong (Note ④) 16.5%
Station-68 (Note ④) 16.5%
the Technology Co. (Notes② and ③) 15%
SHIYUEHUI (Note ⑤) 25%
Harbin Co. (Note ⑤) 25%
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Emile Chouriet (Shenzhen) Limited (Note ⑤) 25%
The Sales Co. (Notes① and ⑤) 25%
Hengdarui (Note ⑤) 25%
Switzerland Company (Note ⑥) 30%
2. Tax Preferences
(1) Enterprise Income Tax
Note ①: According to the regulations stated in GuoShuiFa (2008) No. 28, “Interim Administration Method for Levy of
Corporate Income Tax to Enterprise that Operates Cross-regionally”, the head office of the Company and its branch
offices, the head office of HARMONY Company and its branch offices adopt tax submission method of “unified calculation,
managing by classes, pre-paid in its registered place, settlement in total, and adjustment by finance authorities” starting
from 1 January 2008. 50% is shared and prepaid by branches and 50% is prepaid by the headquarters.
Note ②: According to the Notice of Improving R & D Expense Pre-tax Weighted Deduction Policy (CAI SHUI (2015) No.
119 promulgated by the Science and Technology Department of State Administration of Taxation, the R & D expenses
arising from development of new technology, new products and new process in the Company, the Manufacture Company
and the Technology Company may enjoy 50% weighted deduction as the R & D expenses based on the specified
deduction according to fact as long as they have not formed intangible assets and counted to the current gains and loss;
Note ③: The company enjoys the “income tax rate exclusion of high-tech enterprises enjoying the key support from the
state”;
Note ④: These companies are registered in Hong Kong and the income tax rate of Hong Kong applicable is 16.50% this
year;
Note ⑤: According to the People's Republic of China Enterprise Income Tax Law, the income tax rate is 25% for
residential enterprises since 1 January 2008;
Note ⑥: The tax rate of 30% is applicable for Swiss companies as it was registered in Switzerland.
(2) Property tax
According to Article 2 of the Circular on Transmission of the Provisions on the Policy in Connection with the Property Tax
and Urban Land Use Tax Promulgated by the State Administration of Taxation (SHEN DI SHUI FA [2003] No. 676: for the
new properties newly constructed or purchased by taxpayers, the property tax may be exempted for three years
commencing from the next month after completion of the construction or purchase. Our FIYTA Watch Building located at
Guangming New Zone of Shenzhen enjoys exemption from the property tax for three years commencing from the next
month of completion of the construction.
3. Others
Inapplicable
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VII. Notes to items of consolidated financial statements
1. Monetary capital
In CNY
Items Ending balance Opening balance
Cash in stock 225,027.58 420,783.85
Bank deposit 223,207,376.62 160,135,454.62
Other Monetary Funds 3,089,148.22 4,271,821.50
Total 226,521,552.42 164,828,059.97
Including: total amount deposited overseas 8,012,479.02 9,192,653.31
Other notes
Of other monetary fund, CNY 1,575,000.00 (December 31, 2018: CNY 1,575,000.00) was the margin deposits deposited
by the Company for application to banks for unconditional and irrevocable letter of guarantee, of which CNY 630,000.00
was judicially frozen due to litigation matters.
2. Transactional financial assets
Inapplicable
3. Derivative financial assets
Inapplicable
4. Notes receivable
(1) Presentation of classification of notes receivable
In CNY
Items Ending balance Opening balance
Bank acceptance 2,105,700.57 0.00
Trade acceptance 7,835,290.95 7,051,846.85
Total 9,940,991.52 7,051,846.85
(2) Bad debt provision accrual, received or reversed in the reporting period
Inapplicable
(3) Notes receivable already pledged by the Company at the end of the reporting period
Inapplicable
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(4) Endorsed or discounted notes receivable at the end of the reproting period, but not yet due on
the balance sheet date
Inapplicable
(5) Notes transferred to receivables due to issuer’s default at the end of the reporting period
Inapplicable
(6) Notes receivable actually written off in current period
Inapplicable
5. Accounts receivable
(1) Accounts receivables disclosed by types
In CNY
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Categories
Provision Book value Provision Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts receivable for
which bad debt reserve has
1,799,519.78 0.39% 1,799,519.78 100.00% 0.00 1,799,519.78 0.47% 1,799,519.78 100.00% 0.00
been provided based on
individual items
in which
Accounts receivable with
significant single amount
1,702,371.94 0.37% 1,702,371.94 100.00% 0.00 1,702,371.94 0.44% 1,702,371.94 100.00% 0.00
and provision of bad debt
reserve on individual basis
Accounts receivable with
insignificant single amount
97,147.84 0.02% 97,147.84 100.00% 0.00 97,147.84 0.03% 97,147.84 100.00% 0.00
and provision of bad debt
reserve on individual basis
Accounts receivable for
which bad debt reserve has 461,793,096. 13,670,980.9 448,122,115. 381,434,944. 10,889,287.4
99.61% 2.96% 99.53% 2.85% 370,545,656.61
been provided based on 56 7 59 02 1
portfolios
in which
Group of aging 251,194,196. 54.18% 13,670,980.9 5.44% 237,523,215. 189,655,491. 49.49% 10,889,287.4 5.74% 178,766,203.67
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43 7 46 08 1
210,598,900. 210,598,900. 191,779,452.
Specific fund portfolio 45.43% 0.00 0.00 50.04% 0.00 0.00 191,779,452.94
13 13 94
463,592,616. 15,470,500.7 448,122,115. 383,234,463. 12,688,807.1
Total 100.00% 3.34% 100.00% 3.31% 370,545,656.61
34 5 59 80 9
Provision for bad debt based on individual items: Accounts receivable with significant single amount and provision of bad
debt reserve on separate basis
In CNY
Ending balance
Name
Book balance Bad debt reserve Provision proportion Provision reason
Due poor operation of the
Xi'an Century Ginwa
shopping mall, it is less
Qujiang Shopping Center 1,702,371.94 1,702,371.94 100.00%
likely to recover payment for
Co., Ltd.
goods
Total 1,702,371.94 1,702,371.94 -- --
Provision for bad debt based on individual items: Accounts receivable with insignificant single amount but provision of bad
debt reserve on separate basis
In CNY
Ending balance
Name
Book balance Bad debt reserve Provision proportion Provision reason
Shenzhen Number One
97,147.84 97,147.84 100.00% Unrecoverable
Shop Co., Ltd.
Total 97,147.84 97,147.84 -- --
Provision for bad debt based on portfolio: Specific fund portfolio
In CNY
Ending balance
Name
Book balance Bad debt reserve Provision proportion
Specific fund portfolio 210,598,900.13 0.00 0.00
Total 210,598,900.13 0.00 --
Note to the basis for determining the combination:
Based on historical experience, the Company’s receivables due from petty cash paid to employees, receivables due from
subsidiaries of the Company and accounts receivable for the sales between the last settlement date of the same
department store and the balance sheet date are with high recoverability and low possibility of incurring bad debt, as a
result, no bad debt provisions are provided for such receivables.
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For the provision for bad debts of accounts receivable made according to the general model of the expected credit losses,
please refer to the relevant information about the disclosure of provision for bad debt in the way of disclosing other
receivables:
Bad debt reserve The 1st stage The 2nd stage The 3rd stage Total
Predicted credit loss in the Predicted credit loss in the whole Predicted credit loss in the whole
future 12 months duration (no credit impairment taken duration (credit impairment already
place) taken place)
Balance as at January 1, 2019 12,688,807.19 12,688,807.19
Balance as at January 1, 2019 —— —— —— ——
during the reporting period
-- transferred to the 2nd stage
-- transferred to the 3rd stage
-- reversed to the 2nd stage
-- reversed to the 1st stage
Provision in the reporting period 2,819,885.29 2,819,885.29
Reversal in the reporting period 38,191.73 38,191.73
Charged-off in the reporting period
Written-off in the reporting period
Other changes
Balance as at June 30, 2019 15,470,500.75 15,470,500.75
Disclosed based on aging
In CNY
Aging Ending balance
Within 1 year (with 1 year inclusive) 244,101,929.86
1 to 2 years 4,476,538.60
2 to 3 years 1,322,754.44
Over 3 years 1,292,973.53
Total 251,194,196.43
(2) Provision, recovery or reversal of reserve for bad debts during the reporting period
Provision for bad debt during the reporting period
In CNY
Amount of movement during the reporting period
Categories Opening balance Amount recovered or Ending balance
Provision Written-off
reversed
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Accounts receivable
with significant single
amount and provision 1,702,371.94 0.00 0.00 0.00 1,702,371.94
of bad debt reserve on
separate basis
Accounts receivable
with insignificant
amount and provision 97,147.84 0.00 0.00 0.00 97,147.84
of bad debt reserve on
separate basis
Group of aging 10,889,287.41 2,819,885.29 38,191.73 0.00 13,670,980.97
Total 12,688,807.19 2,819,885.29 38,191.73 0.00 15,470,500.75
(3) Accounts receivable actually written off in current period
Inapplicable
(4) Accounts receivable due from the top five debtors are as follows:
Total accounts receivable due from the top five debtors of the Company in the current period is CNY51,743,736.88,
accounting for 11.16% of the total accounts receivable as at the end of the current period and the total provision for bad
and doubtful debts made as at the end of the current period is CNY2,587,186.85.
(5) Accounts receivable terminated for recognition due to transfer of financial assets
Inapplicable
(6) Amount of assets, liabilities formed by transfer of accounts receivable and continuing to be involved
Inapplicable
6. Financing with accounts receivable
Inapplicable
7. Advance payments
(1) Advance payments are presented based on ages
In CNY
Ending balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 21,301,410.87 82.46% 12,886,273.93 94.29%
1 to 2 years 2,868,479.09 11.10% 0.00 0.00
2 to 3 years 1,014,446.65 3.93% 780,542.40 5.71%
Over 3 years 649,029.90 2.51% 0.00 0.00
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Total 25,833,366.51 -- 13,666,816.33 --
(2) Advance payment to the top five payees of the ending balance collected based on the payees of the advance payment
Inapplicable
8. Other receivables
In CNY
Items Ending balance Opening balance
Other receivables 62,591,073.25 45,870,582.26
Total 62,591,073.25 45,870,582.26
(1) Interest receivable
Inapplicable
(2) Dividends receivable
Inapplicable
(3) Other receivables
1) Classification of other receivables based on nature of payment
In CNY
Nature of Payment Ending book balance Opening book balance
Reserve for employees 5,096,955.76 2,478,447.48
Collateral and Deposit 42,447,660.48 38,091,767.87
Commodity promotion 1,959,416.00 7,827,524.03
Guarantee for property suit 8,958,057.64 0.00
Repurchase payment from securities brokers 3,327,401.11 0.00
Others 11,236,826.69 7,510,384.99
Total 73,026,317.68 55,908,124.37
2) Provision for bad debts
The 1st stage The 2nd stage The 3rd stage
Predicted credit loss in the whole Predicted credit loss in the whole
Bad debt reserve Predicted credit loss in the Total
duration (no credit impairment taken duration (credit impairment already
future 12 months
place) taken place)
Balance as at January 1, 2019 10,037,542.11 10,037,542.11
Balance as at January 1, 2019
—— —— —— ——
during the reporting period
-- transferred to the 2nd stage
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-- transferred to the 3rd stage
-- reversed to the 2nd stage
-- reversed to the 1st stage
Provision in the reporting period 453,051.98 453,051.98
Reversal in the reporting period 55,349.66 55,349.66
Charged-off in the reporting
period
Written-off in the reporting period
Other changes
Balance as at Sunday, June 30,
10,435,244.43 10,435,244.43
2019
Disclosed based on aging
In CNY
Aging Ending balance
Within 1 year (with 1 year inclusive) 58,700,727.02
1 to 2 years 6,429,749.30
2 to 3 years 6,489,591.36
Over 3 years 1,406,250.00
Total 73,026,317.68
3) Provision, recovery or reversal of reserve for bad debts during the reporting period
Provision for bad debt during the reporting period
In CNY
Amount of movement during the reporting period
Categories Opening balance Amount recovered or Ending balance
Provision
reversed
Other receivables with
significant single amount
7,093,237.65 96,353.71 0.00 7,189,591.36
and provision of bad debt
reserve on individual basis
Other receivables with
insignificant single amount
565,400.00 0.00 0.00 565,400.00
but provision of bad debt
reserve on individual basis
Group of aging 2,378,904.46 356,698.27 55,349.66 2,680,253.07
Total 10,037,542.11 453,051.98 55,349.66 10,435,244.43
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4) Accounts receivable actually written off in the reporting period
Inapplicable
5) Other receivables owed by the top five debtors based on the ending balance
In CNY
Proportion in total
Ending balance of the
Company name Nature of Payment Ending balance Aging ending balance of
provision for bad debts
other receivables
Beat Blattman
Payment for goods 4,103,512.16 Over 3 years 5.62% 4,103,512.16
Marketing
China Resources
Deposit in security 3,059,224.00 Within 1 year 4.19% 152,961.20
(Shenzhen) Co., Ltd
Liberty Time Center
Payment for goods 2,286,079.20 Over 3 years 3.13% 2,286,079.20
GmbH
CHINA RESOURCES
SUN HUNG KAI
PROPERTIES Deposit in security 1,672,563.00 Within 1 year 2.29% 83,628.15
(HANGZHOU)
LIMITED
Shenzhen Yitian
Deposit in security 1,145,523.00 Within 1 year 1.57% 57,276.15
Holiday Plaza Co,. Ltd.
Total -- 12,266,901.36 -- 16.80% 6,683,456.86
6) Accounts receivable involving government subsidy
Inapplicable
7) Other receivables with recognition terminated due to transfer of financial assets
Inapplicable
8) Amount of assets and liabilities formed through transfer of other receivables and continuing to be involved
Inapplicable
9. Inventories
Has the new standard for income been implemented
No
(1) Classification of inventories
In CNY
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Ending balance Opening balance
Items Provision for price Provision for price
Book balance Book value Book balance Book value
falling falling
Raw materials 167,245,372.54 28,350,027.04 138,895,345.50 183,679,226.95 28,296,729.51 155,382,497.44
Products in process 10,557,912.97 0.00 10,557,912.97 10,787,777.81 0.00 10,787,777.81
Commodities in
1,634,849,921.44 56,901,087.38 1,577,948,834.06 1,675,548,898.56 59,412,872.11 1,616,136,026.45
stock
Total 1,812,653,206.95 85,251,114.42 1,727,402,092.53 1,870,015,903.32 87,709,601.62 1,782,306,301.70
Does the Company need to comply with the requirements on disclosure according to the Guidance of Shenzhen Stock
Exchange on Disclosure of Information of the Industry Engaged in No. 4 - Listed Companies Engaged in Seed Industry,
Cultivation?
No
(2) Reserve for Price Falling of Inventories
In CNY
Increase in the reporting period Decrease in the reporting period
Items Opening balance Reversal or Ending balance
Provision Others Others
Offset
Raw materials 28,296,729.51 0.00 53,297.53 0.00 0.00 28,350,027.04
Commodities in
59,412,872.11 0.00 2,956.13 2,514,740.86 0.00 56,901,087.38
stock
Total 87,709,601.62 0.00 56,253.66 2,514,740.86 0.00 85,251,114.42
(3) Note to the amount of capitalized borrowing costs involved in the ending balance of inventories
Inapplicable
(4) Assets already completed but not yet settled formed in the construction contract at the end of the reporting
period
Inapplicable
10. Contract assets
Inapplicable
11. Classified as assets held for sale
Inapplicable
12. Non-current assets due within a year
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Inapplicable
13. Other current assets
Has the new standard for income been implemented
No
In CNY
Items Ending balance Opening balance
Input VAT to be offset 33,834,787.17 52,444,448.67
Income tax paid in advance 543,648.10 7,846,471.11
Others 11,688,034.67 13,412,392.46
Total 46,066,469.94 73,703,312.24
14. Equity investment
Inapplicable
15. Other equity investment
Inapplicable
16. Long term accounts receivable
(1) About long term accounts receivable
Inapplicable
(2) Long term account receivable with recognition terminated due to transfer of financial assets
Inapplicable
(3) Amount of assets and liabilities formed through transfer of long term account receivable and continuing to be
involved
Inapplicable
17. Long-term equity investments
In CNY
Increase/ Decrease (+ / -) in the reporting period
Income from Announced Ending
equity Other for balance of
Opening Ending
Investees Additional Decrease of investment comprehensive Other equity distributing Provision for the provision
balance Others balance
investment investment recognized income movement cash impairment for
under equity adjustment dividend or impairment
method profit
I. Joint Venture
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II. Associates
Shanghai
Watch
Industry Co.,
44,881,063.15 0.00 0.00 1,531,310.06 0.00 0.00 0.00 0.00 0.00 46,412,373.21 0.00
Ltd.
(Shanghai
Watch)
Sub-total 44,881,063.15 0.00 0.00 1,531,310.06 0.00 0.00 0.0 0.00 0.00 46,412,373.21 0.00
Total 44,881,063.15 0.00 0.00 1,531,310.06 0.00 0.00 0.00 0.00 0.00 46,412,373.21 0.00
18. Investment in other equity instruments
Inapplicable
19. Other non-current financial assets
Inapplicable
20. Investment based real estate
(1) Investment property measured based on the cost method
In CNY
Items Plant and buildings Land use right Construction-in-process Total
I. Original book value 546,695,433.81 0.00 0.00 546,695,433.81
1. Opening balance 546,695,433.81 0.00 0.00 546,695,433.81
2. Increase in the reporting period
(1) Purchased
(2) Inventories\fixed
assets/construction- in – process
transferred in
(3) Increase of enterprise
consolidation
3. Amount decreased in the
reporting period
(1) Disposal
(2) Other transfer out
4. Ending balance 546,695,433.81 0.00 0.00 546,695,433.81
II. Accumulative depreciation and
accumulative amortization
1. Opening balance 169,376,000.78 0.00 0.00 169,376,000.78
2. Increase in the reporting period 6,852,211.34 0.00 0.00 6,852,211.34
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
(1) Provision or amortization 6,852,211.34 0.00 0.00 6,852,211.34
3. Amount decreased in the
reporting period
(1) Disposal
(2) Other transfer out
4. Ending balance 176,228,212.12 0.00 0.00 176,228,212.12
III. Provision for impairment
1. Opening balance
2. Increase in the reporting period
(1) Provision
3. Amount decreased in the
reporting period
(1) Disposal
(2) Other transfer out
4. Ending balance
IV. Book value
1.Book value at the end of the
370,467,221.69 0.00 0.00 370,467,221.69
reporting period
2.Book value at the beginning of
377,319,433.03 0.00 0.00 377,319,433.03
the reporting period
(2) Investment property measured based on fair value
Inapplicable
(3) Investment property that does not have certificate for property right
Inapplicable
21. Fixed asset
In CNY
Items Ending balance Opening balance
Fixed assets 414,522,443.81 425,649,562.85
Total 414,522,443.81 425,649,562.85
(1) About fixed assets
In CNY
Items Plant & buildings Machinery & equipment Motor vehicle Electronic equipment Other equipment Total
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
I. Original book value
1. Opening balance 458,621,315.96 80,799,655.00 15,572,717.72 44,137,536.41 58,422,164.62 657,553,389.71
2. Increase in the
652,992.91 2,232,519.28 0.00 397,625.55 1,186,820.07 4,469,957.81
reporting period
(1) Purchase 652,992.91 2,232,519.28 0.00 397,625.55 1,186,820.07 4,469,957.81
(2)
Construction-in-process
transferred in
(3) Increase of
enterprise consolidation
3. Amount
decreased in the 68,681.52 959,530.62 706,638.00 734,427.91 1,293,798.83 3,763,076.88
reporting period
(1) Disposal or
68,681.52 959,530.62 706,638.00 734,427.91 1,293,798.83 3,763,076.88
scrapping
4. Ending balance 459,205,627.35 82,072,643.66 14,866,079.72 43,800,734.05 58,315,185.86 658,260,270.64
II. Accumulative
depreciation
1. Opening balance 97,899,718.69 43,012,974.47 13,664,912.06 28,707,685.36 48,618,536.28 231,903,826.86
2. Increase in the
7,193,596.75 3,569,439.07 356,775.98 2,382,887.27 1,515,801.29 15,018,500.36
reporting period
(1) Provision 7,193,596.75 3,569,439.07 356,775.98 2,382,887.27 1,515,801.29 15,018,500.36
3. Amount
decreased in the 14,817.35 670,153.70 671,306.10 642,750.80 1,185,472.44 3,184,500.39
reporting period
(1) Disposal or
14,817.35 670,153.70 671,306.10 642,750.80 1,185,472.44 3,184,500.39
scrapping
4. Ending balance 105,078,498.09 45,912,259.84 13,350,381.94 30,447,821.83 48,948,865.13 243,737,826.83
III. Provision for
impairment
1. Opening balance
2. Increase in the
reporting period
(1) Provision
3. Amount
decreased in the
reporting period
(1) Disposal or
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
scrapping
4. Ending balance
IV. Book value
1.Book value at the
end of the reporting 354,127,129.26 36,160,383.82 1,515,697.78 13,352,912.22 9,366,320.73 414,522,443.81
period
2.Book value at the
beginning of the 360,721,597.27 37,786,680.53 1,907,805.66 15,429,851.05 9,803,628.34 425,649,562.85
reporting period
(2) About temporarily idle fixed assets
Inapplicable
(3) Fixed assets rented through finance lease
Inapplicable
(4) Fixed assets leased through operating lease
Inapplicable
(5) Fixed assets that do not have certificate for property right
In CNY
The reason why the property ownership
Items Book value
certificate has not been granted
Office occupancy of Harbin Office 263,188.43 There existed problem in ownership
Property belonging to Zhengzhou Office 5,986,023.77 In process of handling the procedures
(6) Disposal of fixed assets
Inapplicable
22. Construction-in-process
In CNY
Items Ending balance Opening balance
Construction-in-progress 12,886,665.68 12,041,126.00
Total 12,886,665.68 12,041,126.00
(1)About construction in progress
In CNY
Items Ending balance Opening balance
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Book balance Impairment reserve Book value Book balance Impairment reserve Book value
FIYTA Watch
Building supporting 12,886,665.68 0.00 12,886,665.68 12,041,126.00 0.00 12,041,126.00
works
Total 12,886,665.68 0.00 12,886,665.68 12,041,126.00 0.00 12,041,126.00
(2) Movements of important construction-in-progress projects in the reporting period
In CNY
Including:
Transferred Proportion of Accumulativ amount of
Other Interest
Increase in into the the e amount the
decreases capitalizatio
Project Opening the fixed assets Ending accumulative Project involved in capitalized Capital
Budget in the n rate in the
name balance reporting in the balance engineering progress interest interest in source
reporting reporting
period current input in the capitalizatio the
year period
period budget n reporting
period
FIYTA
Watch
34,050,900. 12,041,126. 12,886,665. Self-raised
Building 845,539.68 0.00 0.00 37.85% 100% 0.00 0.00 0.00
00 00 68 fund
supporting
works
34,050,900. 12,041,126. 12,886,665.
Total 845,539.68 0.00 0.00 -- -- 0.00 0.00 0.00 --
00 00 68
(3) Provision for impairment of construction in progress in the current period
Inapplicable
(4) Engineering materials
Inapplicable
23. Productive biological asset
(1) Productive biological asset by using the cost measurement model
Inapplicable
(2) Productive biological asset by using the fair value measurement model
Inapplicable
24. Oil and Gas Assets
Inapplicable
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25. Use right assets
Inapplicable
26. Intangible assets
(1) About the intangible assets
In CNY
Items Land use right Patent Right Non-patent technology Software system Trademark rights Total
I. Original book value
1. Opening
34,933,822.40 0.00 0.00 23,887,215.08 10,093,308.61 68,914,346.09
balance
2. Increase in the
0.00 0.00 93,469.34 871,572.00 965,041.34
reporting period
(1) Purchase 0.00 0.00 93,469.34 871,572.00 965,041.34
(2) Internal R & D
(3) Increase of
enterprise consolidation
3. Amount
decreased in the
reporting period
(1) Disposal
4. Ending balance
II. Accumulative
amortization
1. Opening
13,581,708.89 0.00 0.00 8,076,111.69 3,711,047.90 25,368,868.48
balance
2. Increase in the
366,776.65 0.00 0.00 2,206,057.05 459,814.14 3,032,647.84
reporting period
(1) Provision 366,776.65 0.00 0.00 2,206,057.05 459,814.14 3,032,647.84
3. Amount
decreased in the
reporting period
(1) Disposal
4. Ending balance 13,948,485.54 0.00 0.00 10,282,168.74 4,170,862.04 28,401,516.32
III. Provision for
impairment
1. Opening
balance
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2. Increase in the
reporting period
(1) Provision
3. Amount
decreased in the
reporting period
(1) Disposal
4. Ending balance
IV. Book value
1.Book value at
the end of the reporting 20,985,336.86 0.00 0.00 13,698,515.68 6,794,018.57 41,477,871.11
period
2.Book value at
the beginning of the 21,352,113.51 0.00 0.00 15,811,103.39 6,382,260.71 43,545,477.61
reporting period
(2) About the land use right that does not have certificate of title
Inapplicable
27. Development expenditure
Inapplicable
28. Goodwill
(1) Original book value of the goodwill
Inapplicable
(2) Provision for impairment of the goodwill
Inapplicable
29. Long term expenses to be apportioned
In CNY
Increase in the Amount amortized in
Items Opening balance Other decrease Ending balance
reporting period the reporting period
Charge of fabrication of
49,305,000.10 14,718,343.28 20,893,290.14 0.00 43,130,053.24
special counters
Refurbishment
74,651,287.13 21,714,834.94 14,319,441.48 0.00 82,046,680.59
expenses
Market promotion 0.00 9,245,282.81 2,083,333.34 0.00 7,161,949.47
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Others 4,616,257.92 1,740,660.12 1,159,891.49 0.00 5,197,026.55
Total 128,572,545.15 47,419,121.15 38,455,956.45 0.00 137,535,709.85
30. Deferred income tax asset/deferred income tax liability
(1) Deferred income tax asset without offsetting
In CNY
Ending balance Opening balance
Items Offsetable provisional Offsetable provisional
Deferred income tax asset Deferred income tax asset
difference difference
Asset impairment reserve 64,862,735.35 17,749,843.25 79,775,704.17 17,676,690.28
Unrealized profit from the
294,735,562.07 59,547,817.25 272,840,911.63 67,717,517.83
intracompany transactions
Offsetable loss 23,096,749.97 5,077,613.81 61,529,125.81 14,363,284.14
Deferred income 3,672,855.36 918,213.84 3,672,855.36 918,213.84
Total 386,367,902.75 83,293,488.15 417,818,596.97 100,675,706.09
(2) Deferred income tax liabilities without offsetting
Inapplicable
(3) Deferred income tax asset or liabilities stated with net amount after offsetting
In CNY
Amount mutually offset Amount mutually offset
between the deferred Ending balance of the between the deferred Opening balance of the
Items income tax assets and deferred income tax asset income tax assets and deferred income tax asset
liabilities at the end of the or liabilities after offsetting liabilities at the beginning of or liabilities after offsetting
reporting period the reporting period
Deferred income tax asset 0.00 83,293,488.15 0.00 100,675,706.09
(4) Statement of deferred income tax asset not recognized
In CNY
Items Ending balance Opening balance
Offsetable provisional difference 0.00 0.00
Offsetable loss 69,044,760.33 65,181,936.05
Provision for impairment of assets 30,788,147.42 30,660,246.75
Total 99,832,907.75 95,842,182.80
Note: The Swiss Co., one of the Company’s sub-subsidiaries, has not recognized the deferred income tax income as it is
indefinite whether it can obtain enough amount of taxable income in future.
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Offsetable loss of the income tax assets: FIYTA Hong Kong, one of the Company's subsidiaries, is not necessary to
recognize the deferred income tax asset for provision for impairment of assets
according to the local tax policy
(5) Unrecognized deferred income tax asset available for offsetting loss is going to expire in the following years
Inapplicable
31. Other non-current assets
Has the new standard for income been implemented
No
In CNY
Items Ending balance Opening balance
Advance payment for engineering works and
7,297,788.01 8,949,160.42
equipment
Total 7,297,788.01 8,949,160.42
32. Short term loans
(1) Classification of short-term loans
In CNY
Items Ending balance Opening balance
Secured loan 30,078,332.26 187,118,452.97
Credit loan 520,000,000.00 360,000,000.00
Total 550,078,332.26 547,118,452.97
(2)Short-term loans overdue but still remaining outstanding
Inapplicable
33. Transactional financial liabilities
Inapplicable
34. Derivative financial liabilities
Inapplicable
35. Notes payable
Inapplicable
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36. Accounts payable
(1) Statement of accounts payable
In CNY
Items Ending balance Opening balance
Payment for goods 146,930,733.24 188,957,240.00
Payment for materials 54,055,696.55 18,632,180.36
Engineering fees 26,696,117.76 52,324,191.98
Total 227,682,547.55 259,913,612.34
(2) Significant accounts payable with age exceeding 1 year
Inapplicable
37. Advance Receipts
(1) Statement of advances from customers
In CNY
Items Ending balance Opening balance
Payment for goods 14,770,379.61 14,822,924.98
Rent 3,252,081.05 1,636,520.02
Total 18,022,460.66 16,459,445.00
(2) Significant advances from customers with age exceeding 1 year
Inapplicable
38. Contract liabilities
Inapplicable
39. Employee remuneration payable
(1) Statement of employee remuneration payable
In CNY
Increase in the reporting Decrease in the reporting
Items Opening balance Ending balance
period period
I. Short term remuneration 63,805,316.88 272,491,338.67 292,637,143.21 43,659,512.34
II. Post-employment benefit
program - defined 5,973,720.95 22,090,963.73 23,142,138.67 4,922,546.01
contribution plan.
Total 69,779,037.83 294,582,302.40 315,779,281.88 48,582,058.35
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(2) Presentation of short term remuneration
In CNY
Increase in the reporting Decrease in the reporting
Items Opening balance Ending balance
period period
1. Salaries, bonus,
63,307,013.46 242,746,533.20 262,946,115.16 43,107,431.50
allowances and subsidies
2. Staff’s welfare 0.00 5,795,147.74 5,795,147.74 0.00
3. Social security premium 0.00 9,967,657.28 9,916,381.28 51,276.00
Including: medical
0.00 8,869,151.88 8,827,318.88 41,833.00
insurance premium
Work injury
0.00 357,040.05 350,766.05 6,274.00
insurance
Maternity
0.00 741,465.35 738,296.35 3,169.00
Insurance
4. Public reserve for
0.00 8,518,713.97 8,518,713.97 0.00
housing
5. Trade union fund and
498,303.42 3,849,765.11 3,847,263.69 500,804.84
staff education fund
6. Short-term paid leave 0.00 1,613,521.37 1,613,521.37 0.00
Total 63,805,316.88 272,491,338.67 292,637,143.21 43,659,512.34
(3) Presentation of the defined contribution plan
In CNY
Increase in the reporting Decrease in the reporting
Items Opening balance Ending balance
period period
1. Basic endowment
473,251.38 20,675,747.29 21,030,867.66 118,131.01
insurance premium
2. Unemployment insurance
0.00 552,469.46 548,054.46 4,415.00
premium
3. Contribution to the
5,500,469.57 862,746.98 1,563,216.55 4,800,000.00
enterprise annuity scheme
Total 5,973,720.95 22,090,963.73 23,142,138.67 4,922,546.01
40. Taxes payable
In CNY
Items Ending balance Opening balance
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Value-added tax 12,738,306.56 32,344,121.18
Consumption tax -153,015.94 0.00
Enterprise Income Tax 15,900,477.46 21,599,264.54
Individual income tax 1,812,507.91 998,190.73
Urban maintenance and construction tax 366,990.40 321,914.01
Real estate tax 1,370,185.18 248,795.56
Education Surcharge 262,286.98 229,955.09
Others -259,753.75 180,930.81
Total 32,037,984.80 55,923,171.92
41. Other payables
In CNY
Items Ending balance Opening balance
Interest payable 740,561.84 772,351.26
Other payables 91,573,312.72 71,047,579.04
Total 92,313,874.56 71,819,930.30
(1) Interest payable
In CNY
Items Ending balance Opening balance
Interest payable for short term loan 740,561.84 772,351.26
Total 740,561.84 772,351.26
(2) Dividend payable
Inapplicable
(3) Other payables
1) Other payments stated based on nature of fund
In CNY
Items Ending balance Opening balance
Collateral and Deposit 33,429,349.06 22,954,307.95
Fund for shop-front activities 1,939,718.66 17,461,589.65
Personal account payable 20,580,376.18 3,058,122.71
Refurbishment 5,100,755.67 6,096,460.99
Down payment 387,531.46 612,659.73
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Others 30,135,581.69 20,864,438.01
Total 91,573,312.72 71,047,579.04
2) Other payables in significant amount and with aging over 1 year
In CNY
Items Ending balance Cause of failure in repayment or carry-over
Shenzhen Tencent Computer System Co., Ltd . 4,693,429.16 Deposit for property lease
Shenzhen Qianhai Zubao Network Technology
1,877,815.24 Deposit for property lease
Co., Ltd.
SHENZHEN COMEN MEDICAL
1,059,236.96 Deposit for property lease
INSTRUMENTS CO., LTD.
Shenzhen Zhongshen Commercial Property
903,166.80 Deposit for property lease
Service Co., Ltd.
Oracle Research & Development
804,000.00 Deposit for property lease
Center(Shenzhen) Co.,Ltd
Total 9,337,648.16 --
42. Held-for-sale liabilities
Inapplicable
43. Non-current liabilities due within a year
In CNY
Items Ending balance Opening balance
Long-term liabilities due within a year 352,790.00 347,470.00
Total 352,790.00 347,470.00
44. Other current liabilities
Inapplicable
45. Long-term Loan
(1) Classification of Long-term Borrowings
In CNY
Items Ending balance Opening balance
Mortgage loan 4,409,875.00 4,517,110.00
Total 4,409,875.00 4,517,110.00
Notes to classification of long term borrowings:
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(1) The Company has no overdue and outstanding long term borrowing.
(2) The Company has no secured borrowings in the balance of the long term borrowings during the reporting period
Other notes, including the interest rate interval:
The interest rate of long term borrowings is 3.00%.
46. Bonds Payable
(1) Bonds payable
Inapplicable
(2) Increase/Decrease of bonds payable (excluding other financial instruments classified as
financial liabilities, such as preferred shares, perpetual bonds, etc.)
Inapplicable
(3) Note to the conditions and time of share conversion of convertible company bonds
Inapplicable
(4) Note to other financial instruments classified as financial liabilities
Inapplicable
47. Lease liabilities
Inapplicable
48. Long term accounts payable
Inapplicable
(1) Long term accounts payable stated based on the nature
Inapplicable
(2) Special accounts payable
Inapplicable
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49. Long term payroll payable
(1) Statement of long term payroll payable
Inapplicable
(2) Change of defined benefit plans
Inapplicable
50. Predicted liabilities
Inapplicable
51. Deferred income
In CNY
Increase in the Decrease in the
Items Opening balance Ending balance Cause of formation
reporting period reporting period
Income to be
Government subsidies 3,672,855.36 0.00 0.00 3,672,855.36
recognized
Total 3,672,855.36 0.00 0.00 3,672,855.36 --
Items involving government subsidies:
In CNY
Amount counted
Amount of newly Amount counted Amount offsetting
to the Related with
added subsidy in to the other costs and
Liabilities Opening balance non-operating Other changes Ending balance assets/related
the reporting income in the expenses in the
income in the with income
period reporting period reporting period
reporting period
Special purpose
fund of Shenzhen
Related with
industrial design 933,011.22 0.00 0.00 0.00 0.00 0.00 933,011.22
assets
development
(Note (1))
Funding project
for construction of
enterprise Related with
1,511,421.57 0.00 0.00 0.00 0.00 0.00 1,511,421.57
technology center assets
designated by the
state (Note (2))
Special purpose 1,162,384.83 0.00 0.00 0.00 0.00 0.00 1,162,384.83 Related with
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fund for 2017 income
Industry and
Informationization
at Provincial Level
(Note (3))
Special fund for
upgrading
Related with
standard and 66,037.74 0.00 0.00 0.00 0.00 0.00 66,037.74
assets
quality of
consumer goods
Other notes:
Note (1): It is the special fund for development of industrial design in Shenzhen obtained according to the Operation
Instructions on Certification and Financial Support Program for Industrial Design Centers in Shenzhen (Trial
Implementation) SHEN JING MAO IT Zi [2013] No. 227 jointly promulgated by Economy, Trade and Information
Commission of Shenzhen Municipality and Finance Commission of Shenzhen Municipality;
Note (2) : It is the fund from the financial support for construction of enterprise technology centers in Shenzhen obtained
according to the Circular of Development and Reform Commission of Shenzhen Municipality on Issuing the First Batch of
Supporting Program of Financial Support Fund for Construction of Enterprise Technology Centers in Shenzhen in 2015
(SHEN JING MAO XINXI YU [2015] No. 129 on October 28, 2015;
Note (3): The special purpose fund obtained according to the Circular of the Economic and Information Commission of
Guangdong Province on Doing a Good Job in Submission to the Special Project Library of Production and Services at
Provincial Level in 2017 (YUE JING XIN SHENG CHAN HAN (2016) No. 53) jointly promulgated by the Economic &
Information Commission of Guangdong Province and the Finance Department of Guangdong Province.
52. Other non-current liabilities
Inapplicable
53. Capital stock
In CNY
Increase / Decrease (+/ -)
Opening balance Shares converted Ending balance
New issuing Bonus shares Others Sub-total
from reserve
Total Shares 438,744,881.00 4,224,000.00 0.00 0.00 0.00 4,224,000.00 442,968,881.00
Other notes:
Approved by the 3rd session of the Ninth Board of Directors held on November 12, 2018 and 2019 1st Extraordinary
General Meeting held on January 11, 2019, the Company decided to grant 4.224 million restrictive A-shares to 128
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FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
persons eligible for the incentive at the price of CNY 4.40 per share. This part of A-share restrictive stock was all granted
and registered for listing by the end of the reporting period. The total consideration of the shares granted to the persons
eligible for the incentive received by the Company amounted to CNY 18,585,600.00, including the increased capital stock
amounted to CNY 4,224,000.00.
54. Other equity instruments
(1) Basic information on the outstanding other financial instruments, including preferred shares,
perpetual bonds, etc. at the end of the reporting period
Inapplicable
(2)Movement of the outstanding other financial instruments, including preferred shares,
perpetual bonds, etc. at the end of the reporting period
Inapplicable
55. Capital reserve
In CNY
Increase in the reporting Decrease in the reporting
Items Opening balance Ending balance
period period
Capital premium (capital
1,047,963,195.57 14,361,600.00 0.00 1,062,324,795.57
stock premium)
Other capital reserve 14,492,448.65 2,234,597.31 0.00 16,727,045.96
Total 1,062,455,644.22 16,596,197.31 0.00 1,079,051,841.53
Other notes, including the note to its increase/decrease and the cause(s) of its movement in the reporting period:
Approved by the 3rd session of the Ninth Board of Directors held on November 12, 2018 and 2019 1st Extraordinary
General Meeting held on January 11, 2019, the Company decided to grant 4.224 million restrictive A-shares to 128
persons eligible for the incentive at the price of CNY 4.40 per share. This part of A-share restrictive stock was all granted
and registered for listing by the end of the reporting period. The total consideration of the shares granted to the persons
eligible for the incentive received by the Company amounted to CNY 18,585,600.00, including the increased capital stock
amounted to CNY 4,224,000.00; the increased capital reserve (capital stock premium) amounted to CNY 14,361,600.00.
The increase of other capital reserve was the amount of the expenses recognized in the reporting period.
56. Treasury shares
In CNY
Items Opening balance Increase in the reporting Decrease in the reporting Ending balance
130
FIYTA HOLDINGS LTD. 2019 Semi-annual Report, Full Text
period period
Shares in stock 0.00 32,902,198.89 0.00 32,902,198.89
Total 0.00 32,902,198.89 0.00 32,902,198.89
Other notes, including the note to its increase/decrease and the cause(s) of its movement in the reporting period:
The increase of the shares in stock during the reporting period consisted of two parts. One part was the consideration
from the subscription of the employees’ restrictive shares received totaling CNY 18,585,600.00 and the other part was the
amount from the repurchase of B-shares totaling CNY 14,316,598.89.
57. Other comprehensive income
In CNY
Amount incurred in the reporting period
Less: the Less: the
amount amount
counted to counted to
the profit the retained
and loss earnings
during the during the
reporting reporting Less:
Amount incurred Attributable
period period Income Attributable to the
Items Opening balance before income tax to minority Ending balance
which had which had tax parent company
in the reporting shareholder
been been expens after tax
period s after tax
counted to counted to e
the other the other
comprehens comprehens
ive income ive income
in the in the
previous previous
period. period.
I. Other comprehensive income which
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
cannot be re-classified into profit and loss
II. Other comprehensive income which shall
-5,442,139.78 1,749,407.20 0.00 0.00 0.00 1,749,407.20 13.67 -3,692,732.58
be re-classified into profit and loss
Conversion difference in foreign
-5,442,139.78 1,749,407.20 0.00 0.00 0.00 1,749,407.20 13.67 -3,692,732.58
currency statements
Total other comprehensive income -5,442,139.78 1,749,407.20 0.00 0.00 0.00 1,749,407.20 13.67 -3,692,732.58
58. Special reserve
Inapplicable
131
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59. Surplus Reserve
In CNY
Increase in the reporting Decrease in the reporting
Items Opening balance Ending balance
period period
Statutory surplus reserve 161,030,899.80 0.00 0.00 161,030,899.80
Discretionary surplus
61,984,894.00 0.00 0.00 61,984,894.00
reserve
Total 223,015,793.80 0.00 0.00 223,015,793.80
60. Retained earnings
In CNY
Items Reporting period Previous period
Before adjustment: Retained earnings at the end of the previous
851,360,603.66 771,484,565.02
period
After adjustment: Retained earnings at the beginning of the
0.00 771,484,565.02
reporting period
Plus: Net profit attributable to the parent company’s owner in the
123,495,460.90 183,835,095.29
report period
Less: Provision of statutory surplus public reserve 0.00 16,210,080.45
Dividends of common shares payable 0.00 87,748,976.20
Retained earnings at the end of the reporting period 974,856,064.56 851,360,603.66
61. Operation Income and Costs
In CNY
Amount incurred in the reporting period Amount incurred in the previous period
Items
Income Costs Income Costs
Principal business 1,775,615,457.33 1,049,188,996.85 1,683,836,915.14 973,240,076.81
Other businesses 9,420,562.90 2,315,078.37 12,054,517.58 3,085,659.54
Total 1,785,036,020.23 1,051,504,075.22 1,695,891,432.72 976,325,736.35
Has the new standard for income been implemented
No
62. Business Taxes and Surcharges
In CNY
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Items Amount incurred in the reporting period Amount incurred in the previous period
Consumption tax 184,399.06 35,185.87
Urban maintenance and construction tax 6,395,004.36 8,003,388.87
Education Surcharge 4,548,531.69 5,707,461.48
Real estate tax 1,886,754.77 1,987,807.87
Land use tax 211,126.82 189,899.66
Tax on using vehicle and boat 1,035.00 375.00
Stamp duty 1,102,915.98 990,689.30
Others 765,107.65 875,978.38
Total 15,094,875.33 17,790,786.43
63. Sales expenses
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Salaries & bonus 145,512,139.90 139,546,287.86
Employees’ welfare 3,159,080.44 3,138,963.39
Public reserve for housing 5,750,656.98 5,500,716.30
Social security premium 22,997,809.84 20,980,632.82
Shopping mall and rental fees 83,986,057.93 64,037,045.34
Advertising, exhibition and market promotion
72,972,500.97 97,597,459.44
fee
Depreciation and amortization 43,315,834.35 39,426,656.57
Packing expenses 5,502,133.20 8,692,707.95
Water & power supply and property
9,561,119.07 6,745,296.70
management fee
Freight 6,971,013.87 5,646,078.77
Office expenses 2,779,674.92 4,263,061.96
Business travel expenses 4,887,148.59 5,097,034.58
Others 8,380,858.89 21,441,100.01
Total 415,776,028.95 422,113,041.69
64. Administrative expenses
In CNY
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Items Amount incurred in the reporting period Amount incurred in the previous period
Salaries & bonus 67,718,045.37 63,138,017.67
Social security premium 5,755,767.56 5,047,581.22
Depreciation and amortization 14,295,251.10 12,160,071.63
Enterprise annuity 1,125,994.66 625,494.72
Labor union dues 2,630,194.16 2,603,067.32
Training fee 518,230.67 1,199,149.56
Business travel expenses 3,353,907.41 3,182,680.24
Office expenses 1,688,108.77 1,870,367.44
Public reserve for housing 2,077,719.29 2,048,849.77
Service fee to intermediary agencies 1,625,961.96 1,792,807.55
Employees’ welfare 1,790,667.18 1,385,238.49
Others 13,772,987.29 9,189,066.08
Total 116,352,835.42 104,242,391.69
65. R & D expenditures
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Salaries & bonus 10,860,114.59 10,517,474.56
Employees’ welfare 205,127.58 307,905.39
Social security premium 924,124.54 992,592.32
Public reserve for housing 304,138.80 336,550.86
Cost of materials 63,256.68 2,478,026.50
Payment for samples 868,357.42 1,146,145.67
Processing charges - 15,226.36
Depreciation and amortization 2,627,949.69 2,356,002.47
Technical cooperation fee 560,030.37 604,801.61
Others 3,113,311.26 2,531,200.28
Total 19,526,410.93 21,285,926.02
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66. Financial expenses
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Interest payment 12,023,843.93 14,273,043.13
Less: capitalized interest 0.00 0.00
Less: Interest income 908,850.92 1,079,587.08
Exchange gain & loss -134,740.68 33,652.69
Financial service charges and miscellaneous 5,258,713.56 4,920,682.75
Total 16,238,965.89 18,147,791.49
67. Other income
In CNY
Source of arising of other income Amount incurred in the reporting period Amount incurred in the previous period
Government subsidies 13,045,742.36 6,497,018.80
Total 13,045,742.36 6,497,018.80
68. Return on investment
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Income from long term equity investment based on
1,531,310.06 93,013.38
equity method
Total 1,531,310.06 93,013.38
69. Net exposure hedge income
Inapplicable
70. Income from change of the fair value
Inapplicable
71. Loss from impairment of credit
Items Amount incurred in the reporting period Amount incurred in the previous period
Provision for bad debt of other receivables -301,318.07 -253,014.23
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Loss from bad debt of accounts receivable -2,780,450.82 5,431,814.64
Total -3,081,768.89 5,178,800.41
72. Loss from impairment of assets
Has the new standard for income been implemented
No
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
I. Loss from impairment of assets
II. Loss from price falling of inventories 2,514,740.86 -1,765,800.30
Total 2,514,740.8 -1,765,800.30
73. Income from disposal of assets
In CNY
Source of income from disposal of assets Amount incurred in the reporting period Amount incurred in the previous period
Profit from disposal of assets 1,720.00 3,490.00
Loss from disposal of assets -213,730.13 -57,897.16
74. Non-operating expenses
In CNY
Amount incurred in the reporting Amount incurred in the previous Amount counted to the current
Items
period period non-operating gain and loss
Disposal of account payable
212,175.93 52,506.24 212,175.93
impossible to be paid
Others 82,135.77 311,353.27 82,135.77
Total 294,311.70 363,859.51 294,311.70
75. Non-operating expenditure
In CNY
Amount incurred in the reporting Amount incurred in the previous Amount counted to the current
Items
period period non-operating gain and loss
Outward donation 200,000.00 380,000.00 200,000.00
Others 324,505.98 86,522.53 324,505.98
Total 524,505.98 466,522.53 524,505.98
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76. Income tax expense
(1) Statement of income tax expense
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Income tax expense in the reporting period 22,066,289.48 34,026,742.02
Deferred income tax expense 18,548,898.09 -562,942.30
Total 40,615,187.57 33,463,799.72
(2) Process of adjustment of accounting profit and income tax expense
In CNY
Items Amount incurred in the reporting period
Total profit 164,110,648.47
Income tax expense calculated based on the statutory/ applicable tax
41,027,662.12
rate
Influence of different tax rates applicable to subsidiaries -3,658,836.86
Influence of adjustment of the income tax in the previous period 414,337.14
Influence of the non-offsetable costs, expenses and loss 1,425,382.35
Influence from the offsetable provisional difference or offsetable loss of
the unrecognized deferred income tax asset at the end of the reporting 1,797,934.13
period
Profit and loss of the joint ventures and associated calculated based on
-382,827.52
the equity method
Others -8,463.80
Income tax expenses 40,615,187.57
77. Other comprehensive income
For the detail, refer to Note 57.
78. Cash Flow Statement Items
(1) Other operation activities related cash receipts
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Commodity promotion fee 7,326,827.42 6,072,093.46
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Government subsidies 13,045,742.36 6,497,018.80
Cash deposit 6,493,217.88 4,350,761.76
Interest income 908,850.92 1,079,587.08
Reserve 687,618.62 1,406,129.93
Others 12,513,870.71 5,617,057.35
Total 40,976,127.91 25,022,648.38
(2) Other cash paid in connection with operation activities
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Market promotion 55,480,743.21 66,401,628.85
Rent 54,742,365.90 39,732,881.18
Shopping mall fees 30,786,192.52 26,461,676.31
Advertisement fee 11,083,207.52 11,176,335.56
Packing expenses 5,703,500.29 8,883,462.57
Business travel expenses 8,284,981.38 8,333,226.89
Water and electricity fees 6,714,986.63 7,029,160.13
R & D expenses 4,322,224.36 6,759,781.73
Office expenses 5,207,489.18 6,534,273.39
Freight 7,747,014.23 6,018,407.34
Exhibition fee 6,546,230.71 5,974,002.19
Property management fee 7,982,065.97 4,228,170.40
Business entertainment 2,683,582.53 2,830,040.57
Service fee to intermediary agencies 2,043,210.38 2,156,715.09
Others 27,973,348.54 14,825,683.48
Total 237,301,143.35 217,345,445.68
(3) Other investment activities related cash receipts
Inapplicable
(4) Other investment activities related cash payments
Inapplicable
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(5) Other fund-raising activities related cash receipts
Inapplicable
(6) Other fund-raising activities related cash payments
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Others 17,565,400.00 0.00
Total 17,565,400.00 0.00
Note to the cash paid for other fund raising related activities:
The amount incurred in the reporting period was the payment for repurchase of B-shares.
79. Supplementary information of the cash flow statement
(1) Supplementary information of the cash flow statement
In CNY
Supplementary information Amount in the reporting period Amount in the previous period
1. Net cash flows arising from adjustment of net
-- --
profit into operating activities:
Net profit 123,495,460.90 112,367,921.44
Plus: Provision for impairment of assets 567,028.03 -14,525,567.48
Depreciation of fixed assets, depletion of oil and
gas asset, depreciation of productive biological 21,385,076.08 21,080,763.14
asset
Amortization of intangible assets 3,291,008.97 2,430,354.87
Amortization of the long-term expenses to be
46,754,405.36 40,947,482.90
apportioned
Loss (income is stated in “-”) from disposal of
fixed assets, intangible assets and other long 212,010.13 54,407.16
term assets
Financial expenses (income is stated with “-”) 12,023,843.93 14,273,043.13
Investment loss (income is stated with “-”) -1,531,310.06 -93,013.38
Decrease of the deferred income tax asset
17,382,217.94 -562,942.30
(increase is stated with “_”)
Decrease of inventories (Increase is stated with
57,362,696.37 94,502,115.24
“-”)
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Decrease of operative items receivable (Increase
-112,532,040.70 -56,854,840.95
is stated with “-”)
Increase of operative items payable (Decrease is
-9,395,746.59 11,052,550.32
stated with “-”)
Net cash flows arising from operating activities 159,014,650.37 224,672,274.09
2. Significant investment and fund-raising
activities with no cash income and expenses -- --
involved:
3. Net change in cash and cash equivalents: -- --
Ending cash balance 224,316,552.42 278,804,271.58
Less: Opening balance of cash 162,623,059.97 184,947,891.32
Net increase of cash and cash equivalents 61,693,492.45 93,856,380.26
(2) Net cash paid for acquisition of subsidiary in the reporting period
Inapplicable
(3) Net cash received from disposal of subsidiary in the reporting period
Inapplicable
(4) Composition of cash and cash equivalents
In CNY
Items Ending balance Opening balance
I. Cash 224,316,552.42 162,623,059.97
Including: Cash in stock 225,027.58 420,783.85
Bank deposit available for payment at
223,207,376.62 160,135,454.62
any time
Other monetary fund used for payment at
884,148.22 2,066,821.50
any time
II. Cash equivalents 224,316,552.42 162,623,059.97
III. Ending balance of cash and cash equivalents 224,316,552.42 162,623,059.97
Including: cash and cash equivalents restricted
for use from the parent company or other 2,205,000.00 2,205,000.00
subsidiaries of the Group
80. Notes to items of statement of change in owner’s equity
Inapplicable
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81. Assets restricted in ownership or use right
In CNY
Items Book value at the end of the reporting period Cause of restriction
L/G cash deposit: CNY 1,575,000.00; judicially frozen
Monetary fund 2,205,000.00
fund: CNY 630,000.00.
Fixed assets 14,609,376.25 Security guarantee
Other receivables 8,958,057.64 Guarantee for property suit
Total 25,772,433.89 --
82. Foreign currency monetary items
(1) Foreign currency monetary items
Items Ending balance of foreign currency Conversion rate Ending balance of Renminbi converted
Monetary capital -- -- 19,563,618.98
Including: USD 1,544,000.97 6.87470 10,614,543.46
Euro 5,335.38 7.81700 41,706.67
HKD 8,474,774.02 0.87966 7,454,919.72
CHF 206,348.97 7.03880 1,452,449.13
Accounts receivable -- -- 19,722,262.85
Including: USD 1,666,823.49 6.87470 11,458,911.45
Euro 38,235.40 7.81700 298,886.12
HKD 8,181,240.80 0.87966 7,196,710.28
CHF 109,074.70 7.03880 767,755.00
Long-term Loan -- -- 4,409,875.00
Including: USD 0.00 0.00 0.00
Euro 0.00 0.00 0.00
HKD 0.00 0.00 0.00
CHF 625,000.00 7.03880 4,409,875.00
Advance payments 7,691,652.56
Including: HKD 567,280.00 0.87966 499,013.52
CHF 742,779.63 7.03880 5,228,277.26
JP Yen 30,781,650.00 0.06382 1,964,361.78
Other receivables 6,622,119.65
Including: HKD 281,839.74 0.87966 247,923.15
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CHF 905,580.00 7.03880 6,374,196.50
Accounts payable 5,839,977.02
Including: USD 3,144.30 6.87470 21,616.12
HKD 6,459,259.72 0.87966 5,681,952.41
CHF 19,379.51 7.03880 136,408.49
Advance receipt 1,903,605.64
Including: USD 265,931.77 6.87470 1,828,201.14
HKD 85,720.05 0.87966 75,404.50
Other payables 1,289,717.20
Including: USD 25,326.00 6.87470 174,108.65
HKD 498,843.80 0.87966 438,812.94
CHF 96,152.13 7.03880 676,795.61
Short term loans 30,086,500.00
Including: HKD 23,000,000.00 0.87966 20,232,180.00
CHF 1,400,000.00 7.03880 9,854,320.00
Non-current liabilities due within a year
Including: CHF 50,000.00 7.03880 352,790.00
(2) Note to overseas operating entities, including important overseas operating entities, which should be
disclosed about its principal business place, function currency for bookkeeping and basis for the choice. In case
of any change in function currency, the cause should be disclosed.
Inapplicable
83. Hedging
Inapplicable
84. Government subsidies
(1) Basic information of government subsidies
In CNY
Amount counted to the current
Categories Amount Items presented
profit and loss
Allowance for BaselWorld from
Shenzhen Watch & Clock 114,333.32 Other income 114,333.32
Association
Financial support in 2018 from 435,000.00 Other income 435,000.00
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Shenzhen Standardization Special
Fund Industrial Standard in 2018
(Note (1))
Financial support of Shenzhen
Intellectual Property Big Data 500,000.00 Other income 500,000.00
Testing Platform (Note (2))
2018 R & D Financial Support from
Shenzhen Science & Technology 1,191,000.00 Other income 1,191,000.00
Innovation Commission (Note (3))
2018 Self-innovation Industry
Development Financial Support
593,600.00 Other income 593,600.00
from Shenzhen Science &
Technology Innovation Commission
Supplementary Award of the 20th
China Patent Award of Guangdong 150,000.00 Other income 150,000.00
Intellectual Property
2018 Head Office Enterprise
Contribution Award from
Development and Reform 4,843,500.00 Other income 4,843,500.00
Commission of Shenzhen
Municipality (Note (4))
Subsidy of the Talent Qualification
Improvement Engineering Project
25,000.00 Other income 25,000.00
of the Human Resource Bureau of
Nanshan District, Shenzhen
Allowance for the supporting
project of commerce & trade
712,664.00 Other income 712,664.00
circulation innovation development
(Note (5))
Financial support from the Special
Fund of Shenzhen Standards 233,000.00 Other income 233,000.00
in 2018
2018 R & D financial support
from the municipal bureau (Note 961,000.00 Other income 961,000.00
(6))
Bonus of the R & D Financial
Support Projects of Guangming 351,000.00 Other income 351,000.00
District 2018
Special fund for the Economic
Development of Guangdong 300,000.00 Other income 300,000.00
District 2019
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Financial support for the production
capacity expansion and efficiency
improvement of the key industrial
1,000,000.00 Other income 1,000,000.00
enterprises from the Science and
Technology Innovation Commission
in 2018 (Note (7))
Special financial support for the
standards of the Market and 108,000.00 Other income 108,000.00
Quality Supervision Commission
Allowance for the Endowment and
Medical Insurance for the Disabled
in the Second Half of 2018 from the
3,651.47 Other income 3,651.47
United Front and Social
Construction Bureau of Guangming
District
Birth allowance from the Social
Security Bureau of Shenzhen 65,323.57 Other income 65,323.57
Municipality
R & D financial support from
258,000.00 Other income 258,000.00
Guangming District in 2017
Domestic market development
subsidy of Small and Medium-sized
14,670.00 Other income 14,670.00
Enterprises Division of Shenzhen
Municipality
Supplementary Award of the 20th
China Patent Award of Guangdong
150,000.00 Other income 150,000.00
Province - Shenzhen Market
Supervision
Financial support from the Finance
Bureau of Guangming District on
286,000.00 Other income 286,000.00
Making Enterprises in Guangming
District Bigger and Stronger
Shenzhen R & D Financial Support
in 2018 (expenses in 2017) (Note 550,000.00 Other income 550,000.00
(8))
Allowance for the talents’ quality
100,000.00 Other income 100,000.00
improvement project
Bonus for encouraging
medium-sized and small
100,000.00 Other income 100,000.00
enterprises from Ecomomic
Promotion Bureau of Nanshan
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District
Total 13,045,742.36 13,045,742.36
Note (1): It refers to the financial support from the government according to the “Measures for Management of the
Special Fund for Developing Shenzhen Standards in Shenzhen” and the “Operating Instructions on Financial Support with
the Special Fund for Developing Shenzhen Standards in Shenzhen” (SHEN SHI ZHI (2019) No. 17) promulgated by
Market and Quality Supervision Commission of Shenzhen Municipality.
Note (2): It refers to the special fund obtained according to the “Circular on Application for the Financial Support for the
Intellectual Property Big Data Monitoring in Shenzhen during 2018 - 2019” promulgated by Market and Quality
Supervision Commission of Shenzhen Municipality.
Note (3): It refers to the bonus from of the governmental financial support bonus obtained according to the
“Announcement of the First Enterprises to be Financially Supported for the Enterprise R & D Financial Support Program in
2018” promulgated by Science & Technology Innovation Commission of Shenzhen Municipality.
Note (4): It refers to the governmental financial support obtained according to the “Measures for Implementation of
Encouraging Development of Head Office Enterprises in Shenzhen” promulgated by Development and Reform
Commission of Shenzhen Municipality (SHEN FU GUI (2017) No. 7).
Note (5): It refers to the governmental financial support according to the “Program for Supporting Commerce & Trade
Circulation Innovation Development 2019” promulgated by Shenzhen Municipal Commission of Economy and
Informatization.
Note (6): It refers to the bonus from of the governmental financial support bonus obtained according to the
“Announcement of the First Enterprises to be Financially Supported for the Enterprise R & D Financial Support Program in
2018” promulgated by Science & Technology Innovation Commission of Shenzhen Municipality.
Note (7): It refers to the governmental financial support obtained according to the “Circular on Instructions for Application
for Projects to be Awarded for Production Capacity Expansion and Efficiency Improvement of the Key Industrial
Enterprises in 2018” promulgated by Shenzhen Municipal Commission of Economy and Informatization.
Note (8): It refers to the bonus from of the governmental financial support bonus obtained according to the
“Announcement of the First Enterprises to be Financially Supported for the Enterprise R & D Financial Support Program in
2018” promulgated by Science & Technology Innovation Commission of Shenzhen Municipality.
(2) Refunding of the government subsidies
Inapplicable
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85. Others
Inapplicable
VIII. Change in consolidation scope
1. Consolidation of enterprises not under the same control
(1) Consolidation of enterprises not under common control during the reporting period
Inapplicable
(2) Consolidation cost and goodwill
Inapplicable
(3) Purchasee's distinguishable assets and liabilities as at the date of purchase
Inapplicable
(4) Profit or loss of the equity held before the date of purchase arising from re-measurement based on the fair
value
Inapplicable
(5) Note to the consolidation consideration or the fair value of the distinguishable assets and liabilities of the
purchasee which cannot be reasonably identified as at the date of purchase or at the end of the very period of
consolidation
Inapplicable
(6) Other notes
Inapplicable
2. Consolidation of enterprises under the same control
(1) Consolidation of enterprises not under common control during the reporting period
Inapplicable
(2) Consolidation cost
Inapplicable
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(3) Book value of the consolidatee's assets and liabilities as at the date of consolidation
Inapplicable
3. Counter purchase
Inapplicable
4. Disposal of subsidiaries
Inapplicable
5. Change of consolidation scope due to other reason
Inapplicable
6. Others
Inapplicable
IX. Equity in other entities
1. Equity in a subsidiary
(1) Composition of an enterprise group
Shareholding proportion
Subsidiaries Main business location Place of registration Nature of business Way of acquisition
Direct Indirect
Establishment or
Harmony Shenzhen Shenzhen Commerce 100.00%
investment
Establishment or
the Manufacture Co. Shenzhen Shenzhen Manufacture 90.00% 10.00%
investment
Establishment or
the Hong Kong Co. Hong Kong Hong Kong Commerce 100.00%
investment
Establishment or
Station-68 Co. Hong Kong Hong Kong Commerce 60.00%
investment
Establishment or
Harbin Co. Harbin Harbin Commerce 100.00%
investment
Establishment or
the Technology Co. Shenzhen Shenzhen Manufacture 100.00%
investment
Establishment or
SHIYUEHUI Shenzhen Shenzhen Commerce 100.00%
investment
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Emile Chouriet Establishment or
Shenzhen Shenzhen Commerce 100.00%
(Shenzhen) Limited investment
Establishment or
The Sales Co. Shenzhen Shenzhen Commerce 100.00%
investment
Consolidation of
Hengdarui Shenyang Shenyang Commerce 100.00% enterprises under the
same control
Consolidation of
Switzerland Company Switzerland Switzerland Commerce 100.00% enterprises not under
the same control
(2) Important non-wholly-owned subsidiaries
Inapplicable
(3) Key financial information of important non-wholly-owned subsidiaries
Inapplicable
(4) Significant restriction on use of enterprise group’s assets and paying off the enterprise group’s liabilities
Inapplicable
(5) Financial support or other support provided to the structured entities incorporated in the scope of
consolidated financial statements
Inapplicable
2. Transaction with a subsidiary with the share of the owner’s equity changed but still under control
(1)Note to change in the share of the owner's equity in subsidiaries
Inapplicable
(2) Affect of the transaction on the minority equity and owner's equity attributable to the parent company
Inapplicable
3. Equity in joint venture arrangement or associates
(1) Important joint ventures or associates
Name of joint venture Main business Place of registration Nature of business Shareholding proportion Accounting
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or associate location treatment method
for investment in
Direct Indirect
joint ventures or
associates
Shanghai Watch
Shanghai Shanghai Manufacture 25.00% Equity method
Industry Co., Ltd.
(2) Key financial information of important joint ventures
Inapplicable
(3) Key financial information of important associates
In CNY
Ending balance/amount incurred in the Opening balance/amount incurred in the
reporting period reporting period
Current assets 108,665,233.95 99,901,286.09
Non-current assets 15,540,417.40 15,459,207.08
Total assets 124,205,651.35 115,360,493.17
Current liabilities 13,047,529.95 10,833,917.48
Total liabilities 13,047,529.95 10,833,917.48
Equity attributable to the parent company’s
111,158,121.40 104,526,575.69
shareholders
Share of net assets calculated according to the
27,789,530.35 26,131,643.92
shareholding proportion
Book value of the equity investment in
46,412,373.21 44,881,063.15
associates
Revenue 57,039,155.07 46,323,386.37
Net profit 6,125,240.23 372,053.52
Total comprehensive income 6,125,240.23 372,053.52
(4) Financial information summary of unimportant joint ventures and associates
Inapplicable
(5) Note to significant restriction on the competence of a joint venture or an associate in transferring funds to the
Company
Inapplicable
(6) Excessive loss incurred to a joint venture or an associate
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Inapplicable
(7) Unrecognized commitment in connection with investment in a joint venture
Inapplicable
(8) Contingent liabilities in connection with investment in joint ventures or associates
Inapplicable
4. Important joint operation
Inapplicable
5. Equity in the structurized entities not incorporated in the consolidated financial statements
Inapplicable
6. Others
Inapplicable
X. Financial instruments and risk management
The Company's major financial instruments include monetary funds, notes receivable and accounts receivable, other
receivables, available-for-sale financial assets, equity investment, notes payable and accounts payable, other payables,
borrowings, etc. For details of financial instruments, please refer to the relevant items in Note VI. The risks involved in
these financial instruments and the Company’s risk control policies aiming at reducing these risks are stated as follows.
The Company’s management conducts management and monitoring of these risk exposures so as to ensure risks to be
controlled within a specific limitation.
The Company used the sensitivity analysis technique to analyze the possible influence of the reasonable and possible
change of the risk variables upon the current profit and loss or shareholders’ equity. Since any risk variables seldom
happen individually, relativity between variables will cause significant influences on the ultimate impacted amount of the
change in a risk variable, so the following statement is based on supposition that each variable happens independently.
(I) Risk management goals and policies
The goal of risk management is to keep proper balance between risk and profit, to reduce negative influence of financial
risk to financial performance of the Company, lower the negative influence of the risks upon the Company's business
performance to the minimum and maximize the interest of the shareholders and its other equity investors. Based on this
goal, the basic strategy of risk management for the Company is to ascertain and analyze all the risks that the Group
confronts, establish appropriate bottom line for risk-taking, and manage the risks accordingly, in the meantime supervise
all the risks in a timely and reliable manner, controlling the risks within the limited scope.
1. Market Risks
(1) Foreign exchange risk
Foreign exchange risk refers to the risk arising from the loss on exchange rate changes. The Company is mainly exposed
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to foreign exchange risk that relates to Hong
Kong dollars, Swiss Franc. Except a number of the Company's subsidiaries that conduct procurement and sales in Hong
Kong Dollars and Swiss Franc, the principal business activities of the Company’s principal business activities are settled
in Renminbi. As at 30 June 2019, except the balance of the aforesaid assets or liabilities which are stated in Hong Kong
dollar, Swiss Franc, US dollar, etc., the balance of the financial assets and financial liabilities of the Company are all in
Renminbi. Foreign exchange risks arising from the balance of assets and liabilities of such foreign currencies may have
an impact on the operating results of the Company.
Items Ending balance Opening balance
Monetary fund 19,563,618.98 11,875,297.06
Notes receivable and accounts receivable 19,722,262.85 11,545,880.33
Advance payment for goods 7,691,652.56 4,733,540.86
Other receivables 6,622,119.65 6,589,218.31
Notes payable and accounts payable 5,839,977.02 2,655,278.19
Advance from customers 1,903,605.64 65,276.30
Other payables 1,289,717.20 489,881.07
Short term loans 30,086,500.00 42,118,460.00
Non-current liabilities due within a year 352,790.00 347,470.00
Long-term Loan 4,409,875.00 4,517,110.00
The Company paid close attention to the influence from the movement of exchange rate upon the Company. The
Company has not taken any measures to avoid foreign exchange risks.
Sensitivity analysis on foreign exchange risks:
Assumption for sensitivity analysis on foreign exchange risks: both the net investment hedge of the overseas business
and cash flow hedge are highly effective. On the basis of the aforesaid assumption, while the other variables remain
unchanged, the pre-tax influence of the reasonable change of the exchange rate possibly incurred upon the current
income and loss and shareholders’ equity is as follows:
End of the reporting period End of the same period of the previous year
Change of the
Items Influence upon the Influence upon the Influence upon the Influence upon the
exchange rate
profit shareholders’ equity profit shareholders’ equity
Appreciation against 978,180.95 978,180.95 483,724.43 483,724.43
Renminbi by 5%
Monetary fund
Depreciation against -978,180.95 -978,180.95 -483,724.43 -483,724.43
Renminbi by 5%
Notes receivable and accounts Appreciation against 986,113.14 986,113.14 846,483.91 846,483.91
receivable Renminbi by 5%
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Depreciation against -986,113.14 -986,113.14 -846,483.91 -846,483.91
Renminbi by 5%
Appreciation against 384,582.63 384,582.63 598,990.31 598,990.31
Renminbi by 5%
Advance payment for goods
Depreciation against -384,582.63 -384,582.63 -598,990.31 -598,990.31
Renminbi by 5%
Appreciation against 331,105.98 331,105.98 312,581.81 312,581.81
Renminbi by 5%
Other receivables
Depreciation against -331,105.98 -331,105.98 -312,581.81 -312,581.81
Renminbi by 5%
Appreciation against 291,998.85 291,998.85 494,013.75 494,013.75
Notes payable and accounts Renminbi by 5%
payable Depreciation against -291,998.85 -291,998.85 -494,013.75 -494,013.75
Renminbi by 5%
Appreciation against 95,180.28 95,180.28 9,193.71 9,193.71
Renminbi by 5%
Advance from customers
Depreciation against -95,180.28 -95,180.28 -9,193.71 -9,193.71
Renminbi by 5%
Appreciation against 64,485.86 64,485.86 23,904.05 23,904.05
Renminbi by 5%
Other payables
Depreciation against -64,485.86 -64,485.86 -23,904.05 -23,904.05
Renminbi by 5%
Appreciation against 1,504,325.00 1,504,325.00 1,264,650.00 1,264,650.00
Renminbi by 5%
Short term loans
Depreciation against -1,504,325.00 -1,504,325.00 -1,264,650.00 -1,264,650.00
Renminbi by 5%
Appreciation against 17,639.50 17,639.50 - -
Non-current liabilities due within Renminbi by 5%
a year Depreciation against -17,639.50 -17,639.50 - -
Renminbi by 5%
Appreciation against 220,493.75 220,493.75 240,518.75 240,518.75
Renminbi by 5%
Long-term borrowings
Depreciation against -220,493.75 -220,493.75 -240,518.75 -240,518.75
Renminbi by 5%
(2) Interest rate risk - risk from change of the cash flow
The Company’s risk of movement in the cash flow of financial instrument arising from change of the interest rate is mainly
related with the bank loan of the fluctuating interest rate. The Company's policy is to maintain the fluctuating interest rate
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of these loans.
Sensitivity analysis on interest rate risks:
Sensitivity analysis on interest rate risks is based on the following assumption:
Influence of the change of market interest rate upon the interest income or expenses of the financial instruments with
variable interest rates;
For the financial instrument with fixed interest rate measured based on the fair value, the change of the interest rate only
impact its interest income or expenses;
For the derivative financial instrument designated as arbitrage tool, the change of the market interest rate impacts its fair
value and all the interest rate hedging is predicted to be highly valid;
The market interest rate as at the balance sheet day uses the discounted cash flow technique to calculate the change of
the fair value of the financial instrument and other financial assets and liabilities.
On the basis of the aforesaid assumption, while the other variables remain unchanged, the pre-tax influence of the
reasonable change of the interest rate possibly incurred upon the current income and loss and shareholders’ equity is as
follows:
As at June 30, 2019, the Company had no borrowings calculated based on the floating interest rate.
(3) Other price risks
The investment classified as the available-for-sale financial asset held by the Company is measured at the cost value as
at the balance sheet date. Therefore, there exists no price risk necessary to be disclosed in the Company.
2. Credit risk
As at June 30, 2019, the maximum credit risk exposure possibly arising from the financial loss to the Company was mainly
from the loss arising from failure of the other party to the contract in implementing the obligations which caused loss from
generation of the Company's financial assets, which specifically included: the carrying amount of the financial asses
recognized in the consolidated balance sheet.
The Company provided no other guarantee which may render the Company bear the credit risk.
For the purpose of lowering the credit risk, the Company may possibly access to the guarantee, credit record and other
elements from the third party based on the debtor's financial status, independent rating and other elements, such as
assessment of the debtor’s credit qualification, such as the current market situation and specifying the corresponding debt
limit and credit term. The Company conducts regular supervision over the debtors’ credit records and may take the
measures of written reminders, shortening the credit period or canceling the credit period, etc. against the debtors with
poor credit record so as to ensure the Company’s overall credit risk to be within the controllable scope. In addition, the
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Company examines the recovery of the accounts receivable on each balance sheet date so as to ensure to provide
sufficient bad debt reserve for the accounts impossible to be recovered. Therefore, in the opinion of the Company's
management, the credit risk borne by the Company has been greatly reduced.
The Company's working capital is deposited in banks with higher credit ratings, so the credit risk of liquid funds is
relatively low.
In the Company's accounts receivable, the accounts receivable owed by the top five customers took 11.16% of the
Company's total accounts receivable; in the Company's other receivables, the total other receivables owed by the top
five customers took 16.8% of the Company's total other receivables.
3. Liquidity risk
In management of the liquidity risk, the Company kept the cash and cash equivalent as sufficient as the management
considered necessary and conducted supervision over the same so as to satisfy the Company's business requirements
and reduced the impact from the fluctuation of cash flow. The Company's management conducted monitoring over the
application of the bank loans and ensured its compliance with the loan agreements.
The Company took the capital arising from its business and bank loans as the major capital source. As at June 30,2019,
the amount of the bank loan not yet used by the Company was CNY 1,527.61 million (December 31,2018: CNY 1,981.03
million).
The expiry of the remaining contract obligations for the financial assets and liabilities held by the Company not discounted
is analyzed as follows: (in CNY 10,000)
Items Within 1 year 1 to 2 years 2-3 years Over 3 years Total
Financial assets:
Monetary fund 22,652.16 - - - 22,652.16
Notes receivable and accounts receivable 47173.41 - - - 47173.41
Where: Notes receivable 994.10 - - - 994.10
Accounts receivable 46,179.31 - - - 46,179.31
Other receivables 6,527.13 - - - 6,527.13
Total financial assets 76,352.70 - - - 76,352.70
Financial liabilities:
Short term loans 55,007.83 - - - 55,007.83
Notes payable and accounts payable 22,768.25 - - - 22,768.25
Including: accounts payable 22,768.25 - - - 22,768.25
Other payables 9231.39 - - - 9231.39
Including: interest payable 74.06 - - - 74.06
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Other payables 9,157.33 - - - 9,157.33
Non-current liabilities due within a year 35.28 - - - 35.28
Long-term Loan - 440.99 440.99
Financial guarantee 11,007.83 - - - 11,007.83
Total financial liabilities and contingent 174,403.28 - - 440.99 174,844.27
liabilities
XI. Disclosure of Fair Value
1. Fair value at the end of the reporting period of the assets and liabilities measured based on the fair value
Inapplicable
2. Basis for determining the market price of the items measured based on the continuous and non-continuous
first level fair value
Inapplicable
3. Items measured based on the continuous or uncontinuous 2nd level fair value, valuation technique as used,
nature of important parameters and quantitative information
Inapplicable
4. Items measured based on the continuous or uncontinuous 3rd level fair value, valuation technique as used,
nature of important parameters and quantitative information
Inapplicable
5. Items measured based on the continuous 3rd level fair value, sensitivity analysis on adjusted information and
unobservable parameters between the book value at beginning and end of the period
Inapplicable
6. In case items measured based on fair value are converted between different levels incurred in the current
period, state the cause of conversion and determine conversion time point
Inapplicable
7. Change of valuation technique incurred in the current period and cause of such change
Inapplicable
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8. Fair value of financial assets and financial liabilities not measured at fair value
Inapplicable
9. Others
Inapplicable
XII. Related parties and transactions
1. Details of the parent company of the Company
Shareholding ratio of the Ratio of vote right of the
Name of the parent
Place of registration Nature of business Registered capital parent company in the parent company in the
company
Company Company
Investment in industries,
AVIC International Holding domestic trade, material
Shenzhen 36.79% 36.79%
Limited supply and distribution; 1,166,161,996
import and export.
Note to the parent company:
The proportion of the equity held by AVIC International Shenzhen Co., Ltd. in AVIC International Holdings Limited is
33.93%. AVIC International Shenzhen is a wholly owned subsidiary of AVIC International Holdings Limited (AVIC IHL).
China Aviation Industry Corporation (AVIC) directly holds 62.52% of the equity of AVIC IHL. Therefore, the Company’s
eventual controller is AVIC.
Therefore, the eventual controller of the Company is AVIC.
2. Subsidiaries of the Company
Refer to Note IX. 1 for details of subsidiaries of the Company.
3. Joint venture and association of the Company
Refer to NOTE IX.3 for details of the Company's major joint ventures or associates.
4. Other related parties of the Company
Names of other related parties Relationship between other related parties and the Company
AVIC Property Management Co., Ltd. (AVIC Property) Controlled by the same party
Shenzhen AVIC Building Technology Co., Ltd. (AVIC Building Co.) Controlled by the same party
Rainbow Department Store Co., Ltd. (RAINBOW) Controlled by the same party
Shennan Circuit Co., Ltd. (Shennan Circuit) Controlled by the same party
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AVIC SUNDA Co., Ltd. (AVIC SUNDA) Controlled by the same party
AVIC Securities Co., Ltd. (AVIC Securities) Controlled by the same party
Xi’an Skytel Hotel Co., Ltd. (Skytel Hotel) Controlled by the same party
Shenzhen AVIC City Property Development Co., Ltd.(AVIC City Property) Controlled by the same party
Shenzhen AVIC Development Co., Ltd. (AVIC City Development) Controlled by the same party
Shenzhen AVIC Guanlan Real Estate Development Co., Ltd. (AVIC
Controlled by the same party
Guanlan Real Estate)
Shenzhen AVIC Changtai Investment Development Co., Ltd. (AVIC
Controlled by the same party
Changtai)
Shenzhen AVIC 9 Square Assets Management Co., Ltd. (9 Square
Controlled by the same party
Asset)
Shenzhen AVIC City Investment Co., Ltd.(AVIC City Investment) Controlled by the same party
Shenzhen CATIC Group Enterprise Training Center (CATIC Training
Controlled by the same party
Center)
Ganzhou CATIC 9 Square Commerce Co., Ltd. (Ganzhou 9 Square) Controlled by the same party
AVIC City Property (Kunshan) Co., Ltd. (AVIC City Property (Kunshan) ) Controlled by the same party
Shenzhen AVIC Huacheng Property Development Co., Ltd.(AVIC
Controlled by the same party
Huacheng Property)
AVIC Finance Co., Ltd. (AVIC Finance ) Controlled by the same party
Shenzhen AVIC Security Service Co., Ltd. (AVIC Security Service) Controlled by the same party
Shenzhen AVIC Property Asset Management Co., Ltd. (AVIC Property
Controlled by the same party
Asset Management)
Jiujiang 9 Square Commerce Management Co., Ltd. (9 Square Commerce
Controlled by the same party
Management)
Shenzhen AVIC Grand Skylight Hotel Management Co., Ltd. (Grand
Controlled by the same party
Skylight Hotel)
Shenzhen AVIC City Parking Lots Management Co., Ltd. (AVIC Parking
Controlled by the same party
Lots Management)
Shenzhen AVIC Grand Skylight Hotel Management Co., Ltd. (Grand
Controlled by the same party
Skylight Hotel)
Shenzhen CATIC Technical Testing Office (CATIC Technical Testing) Controlled by the same party
Gongqingcheng CATIC Cultural Investment Co., Ltd. (Gongqingcheng
Controlled by the same party
CATIC Cultural Investment)
AVIC International Complete Set Equipment Co., Ltd. (AVIC Complete Set
Controlled by the same party
Equipment)
Shenzhen AVIC Real Estate Development Co., Ltd. (AVIC Real Estate) Controlled by the same party
Jiujiang AVIC City Real Estate Development Co., Ltd. (Jiujiang AVIC Real Controlled by the same party
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Estate)
Shenzhen AVIC Property Asset Management Co., Ltd. (AVIC Property
Controlled by the same party
Asset Management)
Shenzhen AVIC Nanguang Elevator Co., Ltd. (AVIC Nanguang ) Controlled by the same party
Shenzhen AVIC Curtain Wall Engineering Co., Ltd. (AVIC Curtain Wall
Controlled by the same party
Engineering )
Huang Yongfeng A senior executive
Wang Mingchuan A senior executive
Fu Debin A senior executive
Xiao Zhanglin A senior executive
Wang Bo A senior executive
Chen Libin A senior executive
Wang Jianxin A senior executive
Zhong Hongming A senior executive
Tang Xiaofei A senior executive
Wang Baoying A senior executive
Sheng Qing A senior executive
Fang Jiasheng A senior executive
Lu Bingqiang A senior executive
Lu Wanjun A senior executive
Liu Xiaoming A senior executive
Pan Bo A senior executive
Li Ming A senior executive
Chen Zhuo A senior executive
Zou Zhixiang A senior executive
5. Related transactions
(1) Related transactions of purchase and sale of commodities and supply and acceptance of
labor services
Statement of purchase of commodities and acceptance of labor services
In CNY
Amount incurred
Description of Related Amount incurred in the Transaction quota Has it exceeded the
Related parties in the previous
Transactions reporting period as approved transaction quota
period
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AVIC Property Reception of services 4,665,553.46 10,000,000.00 No 2,966,178.17
Shopping mall
Rainbow Ltd. 3,005,499.82 8,000,000.00 No 2,554,556.27
fees/purchase of goods
Shenzhen AVIC Group
Training fee 0.00 500,000.00 No 144,548.39
Enterprise Training Center
Statement of sales of goods/supply of labor services
In CNY
Description of Related Amount incurred in the reporting
Related parties Amount incurred in the previous period
Transactions period
Rainbow Ltd. Products and labor services 35,273,411.88 35,060,373.29
Shennan Circuit Products and labor services 4,656,548.21 3,300,322.92
Ganzhou 9 Square Products and labor services 68,392.00 701,423.33
Shenzhen Grand Skylight Hotel
Products and labor services 0.00 5,982.90
Management Co., Ltd.
(2) Related entrusted management/contracted and mandatory management/contracting
Inapplicable
(3) Related lease
The Company as lessor:
In CNY
Rental income recognized in the Rental income recognized in the
Names of lessees Categories of leasehold properties
current period previous period
AVIC Property Housing 9,236,271.13 3,786,677.96
Tianyue Hotel Housing 2,095,238.09 1,746,031.74
9 Square Assets Housing 993,238.13 579,564.39
AVIC SUNDA Housing 926,577.86 898,931.71
CATIC Public Security Service Co. Housing 706,043.41 0.00
AVIC Securities Housing 527,428.55 608,571.42
Rainbow Ltd. Housing 289,764.58 229,327.58
Guanlan Real Estate Housing 172,145.99 53,919.42
AVIC City Property Co., Ltd. Housing 149,630.10 187,965.57
AVIC Real Estate Development Housing 133,876.07 33,406.82
AVIC City Investment Housing 133,320.56 232,636.75
AVIC Huacheng Property Housing 117,566.50 143,684.84
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AVIC City Development Housing 0.00 2,428.57
The Company as lessee:
In CNY
Rental fee recognized in the Rental fee recognized in the
Names of lessees Categories of leasehold properties
current period previous period
Ganzhou 9 Square Housing 538,609.84 544,600.15
Jiujiang AVIC Real Estate Housing 191,570.45 201,501.48
AVIC City Property (Kunshan) Housing 87,666.38 110,753.27
AVIC City Property Co., Ltd. Housing 203,568.04 0.00
(4) Related guarantee
The Company as a guarantor
In CNY
Guarantees Amount guaranteed Effective date Expiring date Is the guarantee finished
the Hong Kong Co. 30,078,332.26 July 24, 2018 May 31, 2020 No
Harmony 80,000,000.00 December 30, 2018 December 29, 2019 No
The Company as a guarantee
In CNY
Guarantors Amount guaranteed Effective date Expiring date Is the guarantee finished
Harmony 60,000,000.00 December 04, 2018 March 08, 2020 No
(5) Borrowings and lendings among related parties
In CNY
Related parties Borrowing amount Starting date Due date Note
Borrowed from
AVIC Financial Co. 100,000,000.00 April 02, 2019 April 02, 2020
AVIC Financial Co. 50,000,000.00 March 26, 2019 March 26, 2020
Lending
(6) Assets assignment and liabilities reorganization of related parties
Inapplicable
(7)Remuneration to senior executives
Inapplicable
(8) Other related transactions
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Inapplicable
6. Accounts receivable from and payable to related parties
(1) Receivables
In CNY
Ending balance Opening balance
Project name Related parties
Book balance Bad debt reserve Book balance Bad debt reserve
Accounts receivable:
Rainbow Ltd. 7,724,759.31 386,237.97 2,205,867.79 115,293.39
AVIC City Property
46,669.00 2,333.45 3.00 0.15
Co., Ltd.
Shennan Circuit 2,972,141.83 148,607.09 1,659,077.38 82,953.87
Ganzhou 9 Square 0.00 0.00 4,000.00 200.00
Gongqingcheng CATIC
0.00 0.00 28,269.36 1,413.47
Cultural Investment
9 Square Commerce
0.00 0.00 4,288.00 214.40
Management Co., Ltd.
AVIC Securities 0.00 0.00 101,428.57 5,071.43
9 Square Assets 0.00 0.00 33,331.01 1,666.55
Guanlan Real Estate 0.00 0.00 8,315.43 415.77
AVIC SUNDA 0.00 0.00 148,915.46 7,445.77
AVIC Property 0.52 0.03 0.52 0.03
Total 10,743,570.66 537,178.54 4,293,496.52 214,674.83
Notes receivable:
Shennan Circuit 1,357,388.98 0.00 2,398,579.72 0.00
Total 1,357,388.98 0.00 2,398,579.72 0.00
Other receivables:
Rainbow Ltd. 905,787.00 45,289.35 761,860.00 38,093.00
AVIC Property 464,011.74 23,200.59 10,100.00 505.00
Ganzhou 9 Square 122,666.00 6,133.30 122,665.60 6,133.28
AVIC City Property
50,400.00 2,520.00 50,400.00 2,520.00
(Kunshan)
9 Square Commerce
50,000.00 2,500.00 50,000.00 2,500.00
Management Co., Ltd.
AVIC City Property
59,923.00 2,996.15 54,923.00 2,746.15
Co., Ltd.
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AVIC IHL 11,101.80 555.09 11,101.80 555.09
AVIC Training Center 16,000.00 800.00 0.00 0.00
Grand Skylight Hotel 0.00 0.00 32,000.00 1,600.00
Gongqingcheng CATIC
0.00 0.00 5,500.00 275.00
Cultural Investment
Total - 1,679,889.54 83,994.48 1,098,550.40 54,927.52
(2) Payables
In CNY
Project name Related parties Ending book balance Opening book balance
Accounts payable:
AVIC Building Co. 0.00 24,000.00
AVIC Property 0.00 40,821.05
Total 0.00 64,821.05
Advance receipts:
Rainbow Ltd. 0.00 0.00
AVIC SUNDA 160,128.00 0.00
CATIC Public Security Service Co. 122,016.00 0.00
AVIC Property 1,756.40 0.00
Total 283,900.40 0.00
Other payables:
AVIC Property 960,753.30 1,131,164.13
AVIC SUNDA 442,407.92 442,407.92
AVIC City Investment 309,732.00 309,732.00
AVIC Securities 213,000.00 213,000.00
AVIC Building Co. 117,888.63 116,960.23
AVIC City Property Co., Ltd. 99,052.32 99,052.32
AVIC Huacheng Property 73,819.68 73,819.68
9 Square Assets 378,483.84 378,483.84
Rainbow Ltd. 96,465.30 60,000.00
AVIC Changtai 0.00 4,064.81
AVIC Real Estate 51,014.88 51,014.88
Guanlan Real Estate 25,401.60 25,401.60
CATIC Public Security Service Co. 10,533.44 10,533.44
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Ganzhou 9 Square 4,909.00 3,446.22
Shennan Circuit 0.00 150,000.00
9 Square Commerce Management Co.,
1,135.00 0.00
Ltd.
Total 2,784,596.91 3,069,081.07
7. Related parties’ commitments
Inapplicable
8. Others
Inapplicable
XIII. Stock payment
1. General
In CNY
Total amount of various equity instruments granted by the Company during the reporting period 4,224,000.00
Total amount of various equity instruments of the Company exercisable during the reporting period 0.00
Total amount of various equity instruments of the Company expired during the reporting period 0.00
The scope of the exercise price of stock options issued at the end of the reporting period and the
Inapplicable
remaining time of the contract
The granting price of the A-share restrictive stock incentive plan in 2018
(Phase I) was CNY4.40 per share. The restricted period is from January
The scope of the exercise price of other equity instruments issued at the end of the reporting
11, 2019 to January 11, 2021 and the unlocking period is from January 11,
period and the remaining time of the contract
2021 to January 11, 2024 (it is necessary to satisfy the vested unlocking
conditions).
Other notes:
Approved by the 3rd session of the Ninth Board of Directors held on November 12, 2018 and 2019 1st Extraordinary
General Meeting held on January 11, 2019, the Company decided to grant 4.224 million restrictive A-shares to 128
persons eligible for the incentive at the price of CNY 4.40 per share. This part of A-share restrictive stock was all granted
and registered for listing by the end of the reporting period. The total consideration of the shares granted to the persons
eligible for the incentive received by the Company amounted to CNY 18,585,600.00, including the increased capital stock
amounted to CNY 4,224,000.00; the increased capital reserve (capital stock premium) amounted to CNY 14,361,600.00.
The valid term of the incentive plan is 5 years (60 months), including the 2 years (24 months) of the lock-up period and 3
years of unlocking period (36 months).
2. Stock payment for equity settlement
In CNY
Method for determining the fair value of equity instruments Fair value of the restrictive stock = closing price as at the date of authorization
granted - granting price - costs of the restrictive factors
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Basis for determining the quantity of exercisable equity Predicted exercisable quantity of the equity incentive shares as at the balance
instruments sheet day
Cause of significant difference between the estimation of the
Nil
reporting period and that of the previous period
Accumulated amount of the equity-settled share-based payment
16,596,197.31
counted to the capital reserve
Total expenses recognized in the equity-settled share-based
2,234,597.31
payment during the reporting period
3. Stock payment for cash settlement
Inapplicable
4. Correction and termination of stock payment
Inapplicable
5. Others
Inapplicable
XIV. Commitments and contingencies
1. Important commitments
Important commitments existing as at the balance sheet date
(1) Operating lease commitment
Implementation of irrevocable operating lease contract signed by the Company ended the balance sheet date is as
follows:
Items Ending balance Opening balance
Minimum rent payment for irrevocable operational lease:
1st year after the balance sheet day 59,257,332.36 54,382,100.37
2nd year after the balance sheet day 33,741,124.09 28,501,337.58
3rd year after the balance sheet day 1,4659709.91 12,406,400.37
Subsequent years 6,968,712.39 9,533,027.43
Total 114,626,878.74 104,822,865.75
(2) Other commitments
Ended June 30, 2019, there was no other commitments necessary to be disclosed.
2. Contingencies
(1) Significant contingencies existing as at the balance sheet day
Nil
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(2) Important contingencies unnecessary to be disclosed but necessary to be explained
There existed no such contingencies necessary to be disclosed in the Company.
3. Others
Inapplicable
XV. Events after balance sheet day
Significant non-adjustment events
Inapplicable
2. Profit distribution
In CNY
Profit or dividend to be distributed 87,748,976.20
Profit or dividend announced to be distributed after review and approval 87,748,976.20
3. Sales return
Inapplicable
4. Note to other matters after the balance sheet date
Inapplicable
XVI. Other significant events
1. Correction of the accounting errors in the previous period
(1) Retroactive restatement
Inapplicable
(2) Prospective application
Inapplicable
2．Liabilities restructuring
Inapplicable
3. Replacement of assets
(1) Non-monetary assets exchange
Inapplicable
(2) Other assets exchange
Inapplicable
4. Pension plan
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Inapplicable
5. Discontinuing operation
Inapplicable
6. Segment information
(1) Basis for determining the reporting segments and accounting policy
Inapplicable
(2) Financial information of the reporting segments
Inapplicable
(3) In case there is no reporting segment or the total assets and liabilities of the reporting segments cannot be disclosed,
explain the reason
Inapplicable
(4) Other notes
Inapplicable
7. Other significant transactions and matters that may affect investors' decision making
Inapplicable
8. Others
Inapplicable
XVII. Notes to the parent company’s financial statements
1. Accounts receivable
(1) Accounts receivables disclosed by types
In CNY
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Categories
Provision Book value Provision Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
in which
Accounts receivable for
which bad debt reserve
2,350,230.66 100.00% 117,511.54 5.00% 2,232,719.12 776,459.35 100.00% 38,822.97 5.00% 737,636.38
has been provided
based on portfolios
in which
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Group of aging 2,350,230.66 100.00% 117,511.54 5.00% 2,232,719.12 776,459.35 100.00% 38,822.97 5.00% 737,636.38
Total 2,350,230.66 100.00% 117,511.54 5.00% 2,232,719.12 776,459.35 100.00% 38,822.97 5.00% 737,636.38
Individual provision for bad and doubtful debts:
Inapplicable
Total provision for bad and doubtful debts based on portfolio: CNY 117,511.54
In CNY
Ending balance
Name
Book balance Bad debt reserve Provision proportion
Group of aging 2,350,230.66 117,511.54 5.00%
Total 2,350,230.66 117,511.54 --
Note to the basis for determining the combination:
In the portfolio, the account receivable for which provision for bad debt is made based on balance percentage:
(2) Provision, recovery or reversal of reserve for bad debts during the reporting period
Provision for bad debt during the reporting period
In CNY
Amount of movement during the reporting period
Categories Opening balance Amount recovered or Ending balance
Provision Written-off
reversed
Group of aging 38,822.97 78,688.57 0.00 0.00 117,511.54
Total 38,822.97 78,688.57 0.00 0.00 117,511.54
(3) Accounts receivable actually written off in current period
Inapplicable
(4) Accounts receivable owed by the top five debtors based on the ending balance
Bad debt reserve at
Nature of Proportion Are they related
No. Names of the debtors Amount Aging the end of the
Payment taken parties
reporting period
1 Shenzhen Zhongshen Commercial Property Service Co., Ltd. Rent 909,993.48 Within 1 year 38.72% 45,499.67 No
2 ICBC Shenzhen Branch Rent 661,473.12 Within 1 year 28.15% 33,073.66 No
3 Shenzhen Goodfamily Sports Equipment Chain Store Co., Rent 356,020.60 Within 1 year 15.15% 17,801.03 No
Ltd.
4 Bravo Tech (Shenzhen) Limited Rent 313,391.69 Within 1 year 13.33% 15,669.58 No
5 Rainbow Ltd. Rent 99,343.20 Within 1 year 4.23% 4,967.16 Yes
(5) Account receivable with recognition terminated due to transfer of financial assets
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Inapplicable
(6) Amount of assets and liabilities formed through transfer of long term account receivable and continuing to be
involved
Inapplicable
2. Other receivables
In CNY
Items Ending balance Opening balance
Other receivables 802,334,152.26 870,739,378.37
Total 802,334,152.26 870,739,378.37
(1) Interest receivable
Inapplicable
(2) Dividends receivable
Inapplicable
(3) Other receivables
1) Classification of other receivables based on nature of payment
In CNY
Nature of Payment Ending book balance Opening book balance
Dealings among related parties within the
797,642,912.65 869,342,613.30
consolidation scope
Reserve 76,233.69 70,000.00
Cash deposit and deposit in security 257,635.90 248,104.00
Others 4,443,236.36 1,178,412.07
Total 802,420,018.60 870,839,129.37
2) Provision for bad debts
Disclosed based on aging
In CNY
Aging Ending balance
Within 1 year (with 1 year inclusive) 878,515.24
1 to 2 years 219,155.80
Over 3 years 40,050.00
Total 1,137,721.04
3) Provision, recovery or reversal of reserve for bad debts during the reporting period
Provision for bad debt during the reporting period
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In CNY
Amount of movement during the reporting period
Categories Opening balance Amount recovered or Ending balance
Provision
reversed
Group of aging 99,751.00 1,355.09 15,239.75 85,866.34
Total 99,751.00 1,355.09 15,239.75 85,866.34
4) Accounts receivable actually written off in the reporting period
Inapplicable
5) Other receivables owed by the top five debtors based on the ending balance
In CNY
Proportion in total
Nature of Ending balance of the
Company name Ending balance Aging ending balance of other
Payment provision for bad debts
receivables
Inter-company
Harmony current 464,511,889.07 Within 1 year 57.89% 0.00
account
Inter-company
The Sales Co. current 192,510,054.01 Within 1 year 23.99% 0.00
account
Inter-company
Hengdarui current 98,030,500.00 Within 1 year 12.22% 0.00
account
Inter-company
SHIYUEHUI current 22,846,703.45 Within 1 year 2.85% 0.00
account
Inter-company
Emile Chouriet (Shenzhen)
current 19,743,766.12 Within 1 year 2.46% 0.00
Limited
account
Total -- 797,642,912.65 -- 99.40% 0.00
6) Accounts receivable involving government subsidy
Inapplicable
3. Long-term equity investments
In CNY
Ending balance Opening balance
Items
Book balance Impairment reserve Book value Book balance Impairment reserve Book value
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Investment in
1,331,248,590.93 0.00 1,331,248,590.93 1,331,248,590.93 0.00 1,331,248,590.93
subsidiaries
Investment in
associates and joint 46,412,373.21 0.00 46,412,373.21 44,881,063.15 0.00 44,881,063.15
ventures
Total 1,377,660,964.14 0.00 1,377,660,964.14 1,376,129,654.08 0.00 1,376,129,654.08
(1) Investment in subsidiaries
In CNY
Provision for
Increase in the Decrease in the Ending balance of the
Investees Opening balance Ending balance impairment in the
reporting period reporting period provision for impairment
reporting period
Harmony 601,307,200.00 0.00 0.00 601,307,200.00 0.00 0.00
The Sales Co. 450,000,000.00 0.00 0.00 450,000,000.00 0.00 0.00
the Manufacture Co. 9,000,000.00 0.00 0.00 9,000,000.00 0.00 0.00
the Technology Co. 10,000,000.00 0.00 0.00 10,000,000.00 0.00 0.00
FIYTA (Hong Kong)
137,737,520.00 0.00 0.00 137,737,520.00 0.00 0.00
Limited
SHIYUEHUI 5,000,000.00 0.00 0.00 5,000,000.00 0.00 0.00
Harbin Harmony World
2,184,484.39 0.00 0.00 2,184,484.39 0.00 0.00
Watch Co., Ltd.
Hengdarui 36,867,843.96 0.00 0.00 36,867,843.96 0.00 0.00
Emile Chouriet
79,151,542.58 0.00 0.00 79,151,542.58 0.00 0.00
(Shenzhen) Limited
Total 1,331,248,590.93 0.00 0.00 1,331,248,590.93 0.00 0.00
(2) Investment in associates and joint ventures
In CNY
Increase/ Decrease (+ / -) in the reporting period
Income from Announced Ending
equity Other for balance of
Opening Ending
Investees Additional Decrease of investment comprehensive Other equity distributing Provision for the provision
balance Others balance
investment investment recognized income movement cash impairment for
under equity adjustment dividend or impairment
method profit
I. Joint Venture
II. Associates
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Shanghai
Watch
44,881,063.15 0.00 0.00 1,531,310.06 0.00 0.00 0.00 0.00 0.00 46,412,373.21 0.00
Industry Co.,
Ltd.
Sub-total 44,881,063.15 0.00 0.00 1,531,310.06 0.00 0.00 0.00 0.00 0.00 46,412,373.21 0.00
Total 44,881,063.15 0.00 0.00 1,531,310.06 0.00 0.00 0.00 0.00 0.00 46,412,373.21 0.00
(3) Other notes
Inapplicable
4. Operation Income and Costs
In CNY
Amount incurred in the reporting period Amount incurred in the previous period
Items
Income Costs Income Costs
Principal business 64,124,939.95 11,807,925.90 56,119,634.18 9,578,544.70
Other businesses 0.00 0.00 0.00 0.00
Total 64,124,939.95 11,807,925.90 56,119,634.18 9,578,544.70
Has the new standard for income been implemented
No
5. Return on investment
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Income from long term equity investment based
1,531,310.06 93,013.38
on equity method
Total 1,531,310.06 93,013.38
6. Others
Inapplicable
XVIII. Supplementary information
1. Statement of non-recurring gains and losses in the reporting period
In CNY
Items Amount Note
It refers to the loss from disposal of fixed
1. Gain/Loss from disposal of non-current assets -212,010.13 assets, such as the obsolete production
equipment
The government subsidies included in the profits and For detail, refer to the supplementary
13,045,742.36
losses of the current period ( (excluding government grants description of the government subsidy counted
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which are closely related to the Company’s business and to the current profit and loss, Note VII.67.
conform with the national standard amount or quantity)
It mainly refers to the security deposit due to
Other non-operating income and expenses other than the
-230,194.27 the advance withdrawal of the shops in some
aforesaid items
channels, etc.
Less: Amount affected by the income tax 2,735,223.75
Total 9,868,314.21 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering their Securities to the Public – Non-recurring Gains and Losses and its non-recurring
gain/loss items as illustrated in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
their Securities to the Public – Non-recurring Gains and Losses which have been defined as recurring gains and losses, it
is necessary to explain the reason.
Inapplicable
2. ROE and EPS
Earnings per share
Profit in the reporting period Return on equity, weighted average Basic earnings per share Diluted earnings per share
(CNY/share) (CNY/share)
Net profit attributable to the Company’s
4.69% 0.2788 0.2788
shareholders of ordinary shares
Net profit attributable to the Company’s
shareholders of ordinary shares less 4.32% 0.2565 0.2565
non-recurring gains and loss
3. Discrepancy in accounting data between IAS and CAS
(1) Discrepancy in net profit and net assets as disclosed in the financial report respectively according to IAS and
CAS
Inapplicable
(2) Discrepancy in net profit and net assets as disclosed in the financial report respectively according to the
accounting standards outside Mainland China and CAS
Inapplicable
(3) Note to the discrepancy in accounting data under the accounting standards outside Mainland China. In case
the discrepancy in data which have been audited by an overseas auditing agent has been adjusted, please
specify the name of the overseas auditing agent.
Inapplicable
4. Others
Inapplicable
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Section11 Documents Available for Inspection
I. Financial statements signed by and under the seal of the legal representative, the chief financial
officer and the person in charge of the accounting office.
II. Originals of all documents and manuscripts of announcements of the Company disclosed in
Securities Times and Hong Kong Commercial Daily as designated by China Securities Regulatory
Commission.
FIYTA HOLDINGS LTD.
Board of Directors
August 15, 2019
173
