FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report April, 2021 1 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Section 1 Important Notice 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. All the directors attended the board meeting for reviewing the Quarter Report. 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 Quarter Report. 2 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Section 2 Company Profile I. Summary of Accounting/Financial Data Does the Company need to make retroactive adjustment or restatement of the accounting data of the previous year No Same period of the previous Year-on-year increase/decrease Reporting period year in the reporting period Revenue in CNY 1,378,277,735.81 588,361,057.06 134.26% Net profit attributable to the Company’s 118,222,042.23 -12,974,795.53 1,011.17% shareholders, in CNY Net profit attributable to the Company’s shareholders less the non-recurring items, in 113,576,505.85 -13,738,773.72 926.69% CNY Net cash flows arising from operating activities, 28,711,219.83 -106,747,751.88 126.90% in CNY Basic earning per share (CNY/share) 0.2780 -0.0294 1,045.66% Diluted earning per share (CNY/share) 0.2780 -0.0294 1,045.66% Return on equity, weighted average 4.15% -0.49% 4.64% 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) 4,412,065,471.64 4,018,712,700.18 9.79% Net profit attributable to the Company’s 2,911,884,821.93 2,799,948,388.09 4.00% shareholders, in CNY Non-recurring gain/loss items and the amount involved In CNY Amount from year beginning to Items Note the end of the reporting period Gain/loss from disposal of non-current assets, including the part written- 55,838.26 off with the provision for impairment of assets. The government subsidies included in the profits and losses of the current period ( (excluding government grants which are closely related 6,070,986.55 to the Company’s business and conform with the national standard amount or quantity) Other non-operating income and expenses other than the aforesaid 37,477.18 items Less: Amount affected by the income tax 1,518,765.61 Total 4,645,536.38 -- 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 II. Total number of shareholders and the statement of the shares held by the top 10 shareholders 1. Total number of the common shareholders and preferred shareholders whose voting rights are restored and shares held by the top 10 shareholders In shares Total common shareholders at the end 28,331 Total preference shareholders with the 0 3 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text of the reporting period voting power recovered at the end of the reporting period (if any) Shareholding by top 10 shareholders Number of the Pledging or freezing Names of the Nature of the Shareholding Number of shares restricted shares Status of the Shareholders shareholder proportion held Quantity held shares AVIC International State corporate 37.40% 162,977,327 0 Holding Limited ICBC - Fuguo Tianhui Selected Domestic non- Growth Hybrid state-owned legal 2.75% 12,000,072 0 Securities person Investment Fund (LOF) Construction Bank of China - Penghua Domestic non- Huizhi Optimized state-owned legal 2.11% 9,211,000 0 Hybrid Securities person Investment Fund ICBC - Fuguo Hi- Domestic non- tech Industry state-owned legal 1.80% 7,829,645 0 Hybrid Securities person Investment Fund Construction Bank of China - Penghua Domestic non- High Quality state-owned legal 1.40% 6,103,406 0 Growth Hybrid person Securities Investment Fund Construction Bank of China - Penghua Domestic non- Value Superiority state-owned legal 1.13% 4,943,342 0 Hybrid Securities person Investment Fund (LOF) China Merchants Bank Co., Ltd. - Fuguo Sci-Tech Innovation Theme Domestic non- 3-Year Sealed state-owned legal 0.68% 2,963,991 0 Operation Flexible person Configuration Hybrid Securities Investment Fund Construction Bank of China - Penghua Domestic non- Selected Growth state-owned legal 0.61% 2,645,834 0 Hybrid Securities person Investment Fund Bank of Domestic non- 0.54% 2,339,400 0 Communications - state-owned legal 4 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text CSCL High Quality person Growth Securities Investment Fund China Construction Bank Co., Ltd. - Fuguo Sci-Tech Domestic non- Innovation Flexible state-owned legal 0.53% 2,290,460 0 Configuration person Hybrid Securities Investment Fund Shares held by top 10 shareholders of unrestricted shares Share type Names of the Shareholders Quantity of unrestricted shares held Share type Quantity CNY ordinary AVIC International Holding Limited 162,977,327 162,977,327 shares ICBC - Fuguo Tianhui Selected Growth CNY ordinary Hybrid Securities Investment Fund 12,000,072 12,000,072 shares (LOF) Construction Bank of China - Penghua CNY ordinary Huizhi Optimized Hybrid Securities 9,211,000 9,211,000 shares Investment Fund ICBC - Fuguo Hi-tech Industry Hybrid CNY ordinary 7,829,645 7,829,645 Securities Investment Fund shares Construction Bank of China - Penghua CNY ordinary High Quality Growth Hybrid Securities 6,103,406 6,103,406 shares Investment Fund Construction Bank of China - Penghua CNY ordinary Value Superiority Hybrid Securities 4,943,342 4,943,342 shares Investment Fund (LOF) China Merchants Bank Co., Ltd. - Fuguo Sci-Tech Innovation Theme 3- CNY ordinary Year Sealed Operation Flexible 2,963,991 2,963,991 shares Configuration Hybrid Securities Investment Fund Construction Bank of China - Penghua CNY ordinary Selected Growth Hybrid Securities 2,645,834 2,645,834 shares Investment Fund Bank of Communications - CSCL High CNY ordinary Quality Growth Securities Investment 2,339,400 2,339,400 shares Fund China Construction Bank Co., Ltd. - Fuguo Sci-Tech Innovation Flexible CNY ordinary 2,290,460 2,290,460 Configuration Hybrid Securities shares Investment Fund Explanation on associated relationship or consistent action of the above Inapplicable shareholders Note to the top 10 shareholders involved in margin financing & securities Inapplicable lending (if any) 5 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Did the top ten common shareholders or top ten shareholders of unrestricted common shares conduct contractual repurchase during the reporting period? No 2. Total Preference Shareholders and the Shareholding by the Top 10 Preference Shareholders Inapplicable 6 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Section 3 Significant Events I. Financial Data Summary, Statement of Change in the Financial Indicators and the Causes during the Reporting Period (I) Items of assets and liabilities Amount at the end End of the previous Variation Items of the reporting Cause of the movement year proportion (%) period Mainly due to the increase in sales receivables collected from the growth of the operation revenue, the net Monetary capital 515,870,165.61 353,057,285.71 46.12% increase of the bank loans and the increase in subscription payments received for the implementation of the second phase of the equity incentive plan. Mainly due to the influence from the implementation of the Use right assets 150,191,634.60 0.00 100% new standards for lease this year. Deferred income tax Mainly due to the influence from the implementation of the 112,197,900.00 80,913,800.35 38.66% asset new standards for lease this year. Other non-current Mainly due to decrease of the advance payment for 5,216,861.24 13,536,307.13 -61.46% assets refurbishment of shops. Mainly due to the decrease in pre-collected rent from the Advance receipts: 5,358,910.60 9,991,850.67 -46.37% property lease business. Payroll payable to the Mainly due to the decrease of the payment for the year- 78,191,053.79 132,853,462.20 -41.14% employees end performance bonus during the reporting period. Mainly due to the increase in repurchase obligations Other payables 198,715,349.62 128,577,597.94 54.55% brought about by the implementation of the equity incentive scheme phase II. Mainly due to the influence of the unlocking of the equity Dividends payable 1,069,368.55 1,639,513.77 -34.78% incentive scheme Phase II and payment of part of the dividend. Mainly due to the influence from the implementation of the Lease liabilities 152,730,913.89 0.00 100% new standards for lease in the current year. Deferred income tax Mainly due to the influence from the implementation of the 40,474,373.69 3,067,834.55 1219.31% liability new standards for lease in the current year. Mainly due to the implementation of the equity incentive Shares in stock 119,217,908.46 61,633,530.48 93.43% scheme Phase II. Other comprehensive Mainly due to the influence from the change of the -6,373,398.65 976,871.41 -752.43% income translation balance of foreign currency statements. (II) Profit Statement Items End of the Same period of the Variation Items Cause of the movement reporting period previous year proportion (%) Mainly due to the growth of the Company's operating Operating revenue 1,378,277,735.81 588,361,057.06 134.26% performance. Mainly due to the increase in taxes and dues brought Taxes and surcharges 7,586,076.81 3,674,419.66 106.46% about from the increase in operation revenue. Mainly due to the corresponding increase in labor and Sales costs 280,821,158.83 183,463,601.55 53.07% channel expenses resulted from growth of the operation revenue. Mainly due to the increase in R&D personnel and the R&D expenses 13,209,007.18 9,810,864.52 34.64% decrease in labor costs during the epidemic in the same 7 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text period last year. Mainly due to the increase of the bank service charges Financial expenses 10,191,937.77 7,521,614.69 35.50% brought about from the increase in operation revenue. Mainly due to the increase in government subsidies Other income 6,070,986.55 742,609.63 717.52% received. Mainly due to the increase of gross profit margin brought Total profit 151,948,990.88 -18,524,043.50 920.28% about from the increase in operation revenue. Mainly due to the increase of taxes and fees brought Income tax expenses 33,706,891.38 -5,549,247.97 707.41% about from the growth of total profit. (III) Items of Cash Flow Statement Items End of the Same period of the Variation Cause of the movement reporting period previous year proportion (%) Net cash flows arising Mainly due to the increase of sales receivables collected from operating 28,711,219.83 -106,747,751.88 126.90% brought about from the increase in operation revenue. activities Net cash flow arising Mainly due to increased investment in refurbishment of from investment -45,193,639.61 -24,341,946.96 -85.66% shops. activities: Mainly due to the net increase of the bank loans and the Net cash flows arising 179,702,677.16 82,992,799.27 116.53% subscription payments received for the implementation of from financial activities the Equity Incentive Plan Phase II. During the first quarter, the domestic mid-to-high-end watch consumption market experienced a continuous growth trend following the second half of last year. According to the statistics of the Swiss Watch Industry FH, the cumulative value of Swiss watch exports to China from January to February increased by 90.38% year-on-year, compared with the increase in 2019 which also reached 47.96%. The Company has always adhered to the concept of high-quality development, continued to tamp basic management, consolidated core competitive advantages, seized market opportunities, and cultivated new growth points. In the first quarter, the operating revenue reached CNY 1.378 billion, a year-on-year growth of 134.26%, and greatly reversed the loss in total profit on year-on-year basis. During the reporting period, the Company continued to focus on the goal of "value creation" and paid close attention to the implementation of the work. Focusing on “brand power, product power, and channel power”, the Company continued to strengthen its core competitive advantages. FIYTA Brand unit price per customer, sales discounts, and gross profit margins continued to increase, series of new products such as MARS 500, Extremity and Heartstrings were successfully launched, and entered shopping mall channels in an orderly way. The year-on-year revenue growth rate reached 58%; on the basis of the continuous improvement of single store output, HARMONY World Watch Retail continued to promote channel expansion. The number of mid-to-high-end channels and brands was further increased. At the same time, it focused on Hainan offshore island tax-free opportunities to promote channel layout. Some duty-free channel projects have been implemented and operation revenue continuously keeps rapid growth. The customer-centric digital operation system has been further implemented, and the contribution to the sales from the potential customer transactions and repurchases of regular customers has been further improved; the new customers of the precision technology business have expanded smoothly, and the operation revenue has grown steadily; the technology reserve and product iteration of the smart wearable business have been propelled in an accelerative way, and the year-on-year operation revenue has experienced a big growth. During the reporting period, the FIYTA brand was selected as one of the 7th "International Reputation Brands" and was honorably listed in the "Shenzhen Gifts". During the 14th Five-Year Plan period, China will accelerate the establishment of a “dual circulation” development pattern in which domestic economic cycle plays a leading role while international economic cycle remains its extension and supplement. The Company keeps optimistic about the growth prospects of the domestic watch consumer market in the future, and shall actively seize the opportunities of the times, continue to strengthen its core competitive advantages, and accelerate the channel layout and structural upgrade; stick to the original aspiration of development, implement the "Big Country Brand" strategy, strengthen high-end precision technology innovation and R&D investment, accelerate self- centered design and development and key watchmaking capabilities; continue to cultivate and promote the development of precision technology and smart wearable businesses. The Company shall take multiple measures simultaneously to enhance the comprehensive competitiveness of various businesses and continue to push the Company's overall operating performance to a new level. 8 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text II. Analysis on and explanation of the progress of important issues and their impacts and solutions 1. Matters in Connection with 2018 Restricted A-Share Incentive Scheme (Phase I) The 24th session of the Ninth Board of Directors held on December 29, 2020 reviewed and approved the Proposal on the Release Conditions having been Satisfied for the First Release Period of 2018 Restricted A-Share Incentive Scheme (Phase I). The 1.357641 million restricted shares (accounting for 0.3116% of the Company's total share capital) that could be lifted this time were listed for trading on February 1, 2021. For the details please refer to the "Indicative Announcement on the First Release of the Restricted Sales Period and the Listing of the Restricted Shares for Trading Involved in the 2018 Restricted A-Share Incentive Scheme (Phase I) 2021-012” disclosed in the Securities Times, Hong Kong Commercial Daily and http://www.cninfo.com.cn. According to the “Proposal for Repurchase and Cancellation of the Partially Restricted Shares Involved in 2018 Restricted A-Share Incentive Scheme (Phase I)” approved at the 26th Sessions of the Ninth Board of Directors held on February 4, 2021 and 2021 2nd Extraordinary General Meeting held on February 24, 2021, the Company decided to repurchase and cancel a total of 51,359 restricted A-shares that were granted with the restriction but not released to the one retired and one deceased incentive objects in the 2018 Restricted A-Share Incentive Scheme (Phase I). For the details please refer to the "Announcement on Repurchase and Cancellation of Partial Restricted Shares Involved in the 2018 Restricted A-Share Incentive Scheme (Phase I) 2021-019” disclosed in the Securities Times, Hong Kong Commercial Daily and http://www.cninfo.com.cn. 2. Matters in Connection with 2018 Restricted A-Share Incentive Scheme (Phase II) The 23rd session of the Ninth Board of Directors held on December 4, 2020 and 2021 1st Extraordinary General Meeting held on January 6, 2021 decided to start 2018 Restricted A-Share Incentive Scheme (Phase II) (Draft) and the summary, which was later on reviewed and approved at the 25th session of the Ninth Board of Directors held on January 15, 2021, and the Company eventually granted 7.66 million restrictive A-shares to 135 persons eligible for the incentive. This part of restricted A-shares was all granted by January 15, 2021 and registered for listing by January 29, 2021. After the grant, the Company's total share capital increased to 435,751,881 shares. For the details please refer to the "Announcement on Completion of the Grant Involved in the 2018 Restricted A-Share Incentive Scheme (Phase II) 2021-011” disclosed in the Securities Times, Hong Kong Commercial Daily and http://www.cninfo.com.cn. According to the “Proposal for Repurchase and Cancellation of the Partial Restricted Shares Involved in 2018 Restricted A-Share Incentive Scheme (Phase II)” approved at the 26th Sessions of the Ninth Board of Directors held on February 4, 2021 and 2021 2nd Extraordinary General Meeting held on February 24, 2021, the Company decided to repurchase and cancel a total of 150,000 restricted A-shares that were granted with the restriction but not released to the one retired incentive object in the 2018 Restricted A-Share Incentive Scheme (Phase II). For the details please refer to the "Announcement on Repurchase and Cancellation of Partial Restricted Shares Involved in the 2018 Restricted A-Share Incentive Scheme (Phase II) 2021-020” disclosed in the Securities Times, Hong Kong Commercial Daily and http://www.cninfo.com.cn. 3. About the Change of Directors, Supervisors and Senior Executives The 25th Session of the Ninth Board of Directors held on January 15, 2021, reviewed and approved the "Proposal on the Appointment of the General Manager of the Company" and the "Proposal on the Appointment of the Secretary of the Board of the Company” according to which Mr. Pan Bo was appointed as the General Manager, Mr. Chen Zhuo was appointed as the Secretary of the Board with the tenure from the date of approval by the Board of Directors to the date of ending of the Ninth Board of Directors. For the detail, please refer to the “Announcement on the Change of the Senior Executives 2021-010” disclosed by the Company on the Securities Times, Hong Kong Commercial Daily and http://www.cninfo.com.cn. The 26th session of the Ninth Board of Directors of the Company held on February 4, 2021 and 2021 2nd Extraordinary General Meeting held on February 24, 2021 reviewed and passed the "Proposal on the Proposed Change of Directors” according to which Mr. Zhang Zhibiao, Mr. Xiao Yi, Mr. Li Peiyin and Mr. Pan Bo were elected non-independent directors of the Ninth Board of Directors of the Company with the tenure from the date of the approval by the general meeting to the date of expiry of the Ninth Board of Directors. For the detail, please refer to the “Announcement on the Proposed Change of Directors 2021-017” disclosed by the Company on the Securities Times, Hong Kong Commercial Daily and http://www.cninfo.com.cn. The 23rd session of the Ninth Board of Directors of the Company held on February 4, 2021 and 2021 2nd Extraordinary General Meeting held on February 24, 2021 reviewed and passed the "Proposal on the Proposed Change of Supervisors” according to which Mr. Zheng Qiyuan and Ms. Cao Zhen were elected non-staff supervisors of the Ninth Supervisory Committee the Company with the tenure from the date of the approval by the general meeting to the date of expiry of the Ninth Supervisory Committee. For the detail, please refer to the “Announcement on the Proposed Change of Supervisors 2021-018” disclosed by the Company on the Securities Times, Hong Kong Commercial Daily and http://www.cninfo.com.cn. 4. About the Amendment of the Articles of Association The 26th session of the Ninth Board of Directors held on February 4, 2021 reviewed and approved the "Proposal on the 9 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Amendment of the Articles of Association" according to which the relevant articles of the Articles of Association concerning the practical situation upon completion of the award based on 2018 Restricted A-Share Incentive Scheme (Phase II) have been updated. For the detail, refer to the Proposal on the Amendment of the Articles of Association disclosed on the Securities Times, Hong Kong Commercial Daily and http://www.cninfo.com.cn. 5. About the Change of Accounting Policies The 27th session of the Ninth Board of Directors held on March 8, 2021 reviewed and approved the "Proposal on Change in the Accounting Policies". According to the relevant provisions of the "Accounting Standards for Business Enterprises No. 21-Lease" revised by the Ministry of Finance, the Company shall implement the updated standards for lease commencing from January 1, 2021. For the detail, please refer to the “Announcement on Change of the Accounting Policies 2021-030” disclosed by the Company on the Securities Times, Hong Kong Commercial Daily and http://www.cninfo.com.cn. Inquiry Index of the Website Overview of the Significant Events Date of disclosure Disclosing Interim Reports Announcement on the Resolution of 2021 1st Extraordinary General Meeting, January 07, 2021 www.cninfo.com.cn 2021-002 Announcement on the Change of the Senior Executives of the Company 2021-010 January 16, 2021 www.cninfo.com.cn "Announcement on Completion of the Grant Involved in the 2018 Restricted A- www.cninfo.com.cn January 28, 2021 Share Incentive Scheme (Phase II) 2021-011 "Indicative Announcement on the Listing of the Restricted Shares for Trading www.cninfo.com.cn Released in the First Release Period Involved in the 2018 Restricted A-share January 29, 2021 Incentive Scheme (Phase I) 2021-012” Announcement on the Proposed Change of Directors 2021-017 February 05, 2021 www.cninfo.com.cn Announcement on the Proposed Change of Supervisors 2021-018 February 05, 2021 www.cninfo.com.cn "Announcement on Repurchase and Cancellation of Partial Restricted Shares www.cninfo.com.cn February 05, 2021 Involved in the 2018 Restricted A-Share Incentive Scheme (Phase I) 2021-019” "Announcement on Repurchase and Cancellation of Partial Restricted Shares www.cninfo.com.cn February 05, 2021 Involved in the 2018 Restricted A-Share Incentive Scheme (Phase II) 2021-020” Proposal on the Amendment of the Articles of Association February 05, 2021 www.cninfo.com.cn Announcement on the Resolution of 2021 2nd Extraordinary General Meeting, www.cninfo.com.cn February 25, 2021 2021-023 Announcement on the Change of Accounting Policies 2021-030 March 10, 2021 www.cninfo.com.cn Progress of implementation of the stock repurchase The 19th Session of the Ninth Board of Directors held on July 6, 2020 and 2020 2nd Extraordinary General Meeting held on July 23, 2020 reviewed and approved the “Proposal on Repurchase of Partial Domestically Listed Foreign Shares (B- Shares)”, and subsequently disclosed the repurchase report and a series of progress announcements in accordance with relevant regulations. For the detail, refer to the relevant announcement disclosed in the Securities Times, Hong Kong Commercial Daily and http://www.cninfo.com.cn. Ended the reporting period, the Company accumulatively repurchased 8,994,086 shares in the Company through a centralized bidding method with the special account for the securities repurchased, accounting for 2.06% of the Company’s total share capital. The highest transaction price of the repurchased shares was HK$6.74 per share, and the lowest transaction price was HK$5.93/share, the total amount paid was HK$ 58,207,259.08 (with the stamp duty, commission and other transaction costs exclusive). The repurchase activity complies with the requirements of relevant laws and regulations as well as the Company's established repurchase plan. 10 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Progress of implementation of reduction of the holding size of the shares repurchased by centralized bidding 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 during the reporting period Inapplicable IV. Financial assets investment 1. Portfolio investment Inapplicable 2. Investment in derivatives Inapplicable V. Progress of the projects invested with the raised capital Inapplicable VI. Prediction of the Performances from January to June, 2021 Inapplicable VII. Important contracts for day-to-day operation Inapplicable VIII. Finance Management on Commission Inapplicable IX. Outward guarantee against regulations Inapplicable XI. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and its Related Parties Inapplicable XI. Registration Form of the Activities, such as Reception of Survey, Communications, Interviews, etc. during the Reporting Period Types of Index of Basic Information Way of Main contents discussed Reception time Place of reception Visitors Visitors Received on the Investigation and reception and information provided Received Survey In order to provide investors with a comprehensive and in-depth understanding of the Company’s situation, the Company held a 2020 Extensive investors’ Online Performance Briefing participation in the and conducted Wechat Mini http://irm.cninfo.com.cn/ir Company's 2020 communications and March 25, Program Titled cs/company/companyDet Others Others Annual Online exchange with investors on 2021 “FIYTA Relationship ail?stockcode=000026&or Performance the Company’s 2020 with Investors gId=gssz0000026 Presentation by operating status, network remoteness development strategy, watch brand business, watch retail service business, and development of precision technology and smart wearables. 11 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Section 4 Financial Statements I. Financial Statements 1. Consolidated Balance Sheet Prepared by FIYTA Precision Technology Co., Ltd. March 31, 2021 In CNY Items March 31, 2021 December 31, 2020 Current assets: Monetary capital 515,870,165.61 353,057,285.71 Settlement reserve Inter-bank lending Transactional financial assets Derivative financial assets Notes receivable 45,811,895.91 48,192,442.15 Accounts receivable 474,323,699.52 475,598,684.88 Financing with accounts receivable Advance payment 19,452,930.97 16,612,773.76 Receivable premium Reinsurance accounts receivable Reserve for reinsurance contract receivable Other receivables 67,561,444.59 52,902,779.63 Including: Interest receivable Dividends receivable Redemptory monetary capital for sale Inventories 1,991,797,379.63 1,931,780,185.85 Contract assets Held-for-sale assets Non-current assets due within a year Other current assets 53,952,733.66 75,935,141.76 Total current assets 3,168,770,249.89 2,954,079,293.74 12 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Non-current assets: Loan issuing and advance in cash Equity investment Other equity investment Long term accounts receivable Long-term equity investment 51,400,665.92 51,400,665.92 Investment in other equity instruments 85,000.00 85,000.00 Other non-current financial assets Investment-oriented real estate 394,236,394.60 398,086,447.78 Fixed assets 346,058,054.01 352,734,280.76 Construction-in-progress Productive biological asset Oil and gas assets Use right assets 150,191,634.60 Intangible assets 36,180,605.73 37,859,316.51 Development expenses Goodwill Long-term expenses to be apportioned 147,728,105.65 130,017,587.99 Deferred income tax asset 112,197,900.00 80,913,800.35 Other non-current assets 5,216,861.24 13,536,307.13 Total non-current assets 1,243,295,221.75 1,064,633,406.44 Total assets 4,412,065,471.64 4,018,712,700.18 Current liabilities: Short term borrowings 687,436,933.96 542,673,278.09 Borrowings from central bank Loans from other banks Transactional financial liabilities 13 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Derivative financial liabilities Notes payable 3,581,360.00 3,581,360.00 Accounts payable 245,220,078.41 301,211,515.39 Advance receipt 5,358,910.60 9,991,850.67 Contract liabilities 17,329,637.12 18,213,396.49 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 78,191,053.79 132,853,462.20 Taxes payable 62,314,726.15 68,925,271.90 Other payables 198,715,349.62 128,577,597.94 Including: interest payable Dividends payable 1,069,368.55 1,639,513.77 Service charge and commission payable Payable reinsurance Held-for-sale liabilities Non-current liabilities due within a year 348,780.00 370,030.00 Other current liabilities 2,049,954.95 2,299,755.09 Total current liabilities 1,300,546,784.60 1,208,697,517.77 Non-current liabilities: Reserve for insurance contract Long-term borrowings 3,749,385.00 4,070,330.00 Bonds payable Including: preferred shares 14 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Perpetual bond Lease liabilities 152,730,913.89 Long-term accounts payable Long term payroll payable to the employees Estimated liabilities Deferred income 2,646,886.77 2,916,346.43 Deferred income tax liability 40,474,373.69 3,067,834.55 Other non-current liabilities Total non-current liabilities 199,601,559.35 10,054,510.98 Total liabilities 1,500,148,343.95 1,218,752,028.75 Owner’s equity: Capital stock 435,751,881.00 428,091,881.00 Other equity instruments Including: preferred shares Perpetual bond Capital Reserve 1,076,840,727.19 1,021,490,387.78 Less: shares in stock 119,217,908.46 61,633,530.48 Other comprehensive income -6,373,398.65 976,871.41 Special reserve Surplus Reserve 246,531,866.87 246,531,866.87 Provision for general risks Retained earnings 1,278,351,653.98 1,164,490,911.51 Total owners’ equity attributable to the 2,911,884,821.93 2,799,948,388.09 parent company Minority shareholders’ equity 32,305.76 12,283.34 Total owner’s equity 2,911,917,127.69 2,799,960,671.43 Total liabilities and owners’ equity 4,412,065,471.64 4,018,712,700.18 15 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text 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 March 31, 2021 December 31, 2020 Current assets: Monetary capital 445,620,979.51 292,055,169.74 Transactional financial assets Derivative financial assets Notes receivable Accounts receivable 7,089,828.66 1,464,798.79 Financing with accounts receivable Advance payment Other receivables 632,479,347.29 621,512,680.69 Including: Interest receivable Dividends receivable Inventories Contract assets Held-for-sale assets Non-current assets due within a year Other current assets 12,307,795.95 11,655,617.82 Total current assets 1,097,497,951.41 926,688,267.04 Non-current assets: Equity investment Other equity investment Long term accounts receivable Long-term equity investment 1,531,727,687.92 1,529,415,188.28 Investment in other equity instruments 85,000.00 85,000.00 Other non-current financial assets 16 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Investment-oriented real estate 320,132,259.45 323,296,494.84 Fixed assets 221,846,034.42 224,709,747.39 Construction-in-progress Productive biological asset Oil and gas assets Use right assets Intangible assets 26,247,690.42 27,347,950.13 Development expenses Goodwill Long-term expenses to be apportioned 11,010,869.81 11,980,697.97 Deferred income tax asset 1,300,559.69 1,380,180.94 Other non-current assets 418,175.48 473,312.35 Total non-current assets 2,112,768,277.19 2,118,688,571.90 Total assets 3,210,266,228.60 3,045,376,838.94 Current liabilities: Short term borrowings 550,551,650.88 400,425,930.05 Transactional financial liabilities Derivative financial liabilities Notes payable Accounts payable 1,508,635.49 1,481,135.49 Advance receipt 6,262,265.42 9,991,850.67 Contract liabilities 66,037.74 37,735.85 Payroll payable to the employees 15,854,865.76 25,256,531.70 Taxes payable 3,817,784.70 2,778,265.84 Other payables 259,090,861.30 240,824,305.37 Including: interest payable Dividends payable 1,069,368.55 1,639,513.77 17 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Held-for-sale liabilities Non-current liabilities due within a year Other current liabilities 3,962.26 2,264.15 Total current liabilities 837,156,063.55 680,798,019.12 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 2,377,718.35 2,377,718.35 Deferred income tax liability Other non-current liabilities Total non-current liabilities 2,377,718.35 2,377,718.35 Total liabilities 839,533,781.90 683,175,737.47 Owner’s equity: Capital stock 435,751,881.00 428,091,881.00 Other equity instruments Including: preferred shares Perpetual bond Capital Reserve 1,081,381,943.73 1,027,145,928.88 Less: shares in stock 119,217,908.46 61,633,530.48 Other comprehensive income 18 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Special reserve Surplus Reserve 246,531,866.87 246,531,866.87 Retained earnings 726,284,663.56 722,064,955.20 Total owner’s equity 2,370,732,446.70 2,362,201,101.47 Total liabilities and owners’ equity 3,210,266,228.60 3,045,376,838.94 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 Amount incurred in the reporting period Amount incurred in the previous period I. Turnover 1,378,277,735.81 588,361,057.06 Including: operating income 1,378,277,735.81 588,361,057.06 Interest income Earned insurance premium Service charge and commission income II. Total operating costs 1,232,594,973.38 608,046,690.52 Including: Operating costs 863,898,587.47 354,482,460.46 Interest payment Service charge and commission payment Surrender Value Compensation expenses, net Provision of reserve for insurance contract, net Payment of policy dividend Reinsurance expenses Taxes and surcharges 7,586,076.81 3,674,419.66 Sales costs 280,821,158.83 183,463,601.55 Administrative expenses 56,888,205.32 49,093,729.64 R & D expenditures 13,209,007.18 9,810,864.52 19 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Financial expenses 10,191,937.77 7,521,614.69 Where: Interest cost 7,371,044.43 6,565,834.69 Interest income 1,055,297.15 710,713.51 Plus: Other income 6,070,986.55 742,609.63 Investment income (loss is stated with “-”) Including: return on investment in associate and joint venture Gain from the derecognition of the financial assets measured at amortised cost 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 101,926.46 212,857.46 is stated with “-”) Loss from impairment of assets (loss is stated with “-”) Income from disposal of assets 55,838.26 -62,305.15 (loss is stated with “-“) III. Operating Profit (loss is stated with “-“) 151,911,513.70 -18,792,471.52 Plus: Non-operating income 53,671.38 273,393.02 Less: Non-operating expenses 16,194.20 4,965.00 IV. Total profit (total loss is stated with “-”) 151,948,990.88 -18,524,043.50 Less: Income tax expense 33,706,891.38 -5,549,247.97 V. Net Profit (net loss is stated with “-“) 118,242,099.50 -12,974,795.53 (I) Classification based on operation sustainability 1. Net Profit from sustainable operation 118,242,099.50 -12,974,795.53 (net loss is stated with “-”) 20 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text 2. Net Profit from termination of operation (net loss is stated with “-”) (II) Classification by ownership Plus: Net profit attributable to the parent 118,222,042.23 -12,974,795.53 company’s shareholder 2. Minority shareholders’ gain/loss 20,057.27 VI. Net of other comprehensive income after -7,350,304.91 7,812.79 tax Net of other comprehensive income after tax attributable to the parent company’s -7,350,270.06 7,702.93 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 -7,350,270.06 7,702.93 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. Amount of the reclassified financial assets counted to the other comprehensive income 4. Provision for impairment of the credit of the other debt investment 21 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text 5. Reserve for cash flow hedge 6. Conversion difference in -7,350,270.06 7,702.93 foreign currency statements 7. Others Net amount of other comprehensive income after tax attributable to minority -34.85 109.86 shareholders VII. Total comprehensive income 110,891,794.59 -12,966,982.74 Total comprehensive income attributable 110,871,772.17 -12,967,092.60 to the parent company’s owner Total comprehensive income attributable 20,022.42 109.86 to minority shareholders VIII. Earnings per share: (I) Basic earnings per share 0.2780 -0.0294 (II) Diluted earnings per share 0.2780 -0.0294 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 Amount incurred in the reporting period Amount incurred in the previous period I. Operating revenue 40,512,870.91 26,379,756.89 Less: Operating cost 8,580,294.90 8,821,367.61 Taxes and surcharges 1,933,434.18 727,419.42 Sales costs 867,344.42 262,850.91 Administrative expenses 18,190,771.26 15,775,264.67 R & D expenditures 5,279,428.87 3,807,693.17 Financial expenses 794,354.57 1,890,037.46 Where: Interest cost 1,807,348.91 2,556,955.67 Interest income 937,926.41 650,773.18 Plus: Other income 851,544.46 61,679.85 Investment income (loss is stated with “-”) 22 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Including: return on investment in associate and joint 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 -63,153.20 (loss is stated with “-”) Loss from impairment of assets (loss is stated with “-”) Income from disposal of assets -17,119.90 (loss is stated with “-“) II. Operating Profit (loss is stated with “-“) 5,638,514.07 -4,843,196.50 Plus: Non-operating income 2,737.62 Less: Non-operating expenses III. Total profit (total loss is stated with “-“) 5,638,514.07 -4,840,458.88 Less: Income tax expense 1,418,805.71 IV. Net Profit (net loss is stated with “-“) 4,219,708.36 -4,840,458.88 (I) Net Profit from sustainable 4,219,708.36 -4,840,458.88 operation (net loss is stated with “-”) (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 23 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text 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. Amount of the reclassified financial assets counted to the other comprehensive income 4. Provision for impairment of the credit of the other debt investment 5. Reserve for cash flow hedge 6. Conversion difference in foreign currency statements 7. Others VI. Total comprehensive income 4,219,708.36 -4,840,458.88 VII. Earnings per share: (I) Basic earnings per share (II) Diluted earnings per share 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 Amount incurred in the reporting period Amount incurred in the previous period I. Cash flows arising from operating activities: Cash received from sales of goods and 1,523,350,402.04 717,413,076.16 supply of labor service Net increase of customers’ deposit and due from banks Net increase of borrowings from the central bank Net increase of borrowings from other 24 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text 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 136,077.50 257,310.78 Other operation activity related cash 17,653,164.00 9,436,996.31 receipts Subtotal of cash flow in from operating 1,541,139,643.54 727,107,383.25 activity Cash paid for purchase of goods and 1,090,077,507.00 559,509,759.87 reception of labor services Net increase of loans and advances to customers Net increase of due from central bank and due from other banks Cash from payment for settlement of the original insurance contract Net increase of the lending capital Cash paid for interest, service charge and commission Cash for payment of policy dividend Cash paid to and for staff 237,448,359.49 168,291,839.52 Taxes paid 75,193,535.72 36,992,378.49 Other business activity related cash 109,709,021.50 69,061,157.25 payments Subtotal of cash flow out from operating 1,512,428,423.71 833,855,135.13 activity Net cash flows arising from operating 28,711,219.83 -106,747,751.88 activities II. Cash flow arising from investment activities: Cash received from recovery of investment Cash received from investment income Net cash from disposal of fixed assets, intangible assets and recovery of other long 9,762.94 2,912.82 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 9,762.94 2,912.82 activity 25 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Cash paid for purchase/construction of fixed assets, Intangible assets and other 45,203,402.55 24,344,859.78 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 45,203,402.55 24,344,859.78 activity Net cash flow arising from investment -45,193,639.61 -24,341,946.96 activities: III. Cash flow arising from fund-raising activities: Cash received from absorbing 58,216,000.00 investment Incl.: Cash received from the subsidiaries’ absorption of minority shareholders’ investment Cash received from loans 404,237,473.75 200,000,000.00 Other fund-raising related cash receipts Subtotal of cash flow in from fund raising 462,453,473.75 200,000,000.00 activity Cash paid for debt repayment 251,180,000.00 90,000,000.00 Cash paid for dividend/profit 5,950,681.24 6,304,375.08 distribution or repayment of interest Including: Dividend and profit paid by the subsidiaries to minority shareholders Cash paid for other financing activities 25,620,115.35 20,702,825.65 Sub-total cash flow paid for financing 282,750,796.59 117,007,200.73 activities Net cash flow arising from fund-raising 179,702,677.16 82,992,799.27 activities IV. Change of exchange rate influencing the -407,377.48 -92,078.98 cash and cash equivalent V. Net increase of cash and cash 162,812,879.90 -48,188,978.55 equivalents Plus: Opening balance of cash and 353,057,285.71 315,093,565.09 cash equivalents VI. Ending balance of cash and cash 515,870,165.61 266,904,586.54 equivalents 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 Amount incurred in the reporting period Amount incurred in the previous period I. Cash flows arising from operating activities: Cash received from sales of goods and 33,296,256.79 21,432,068.81 supply of labor service Rebated taxes received 26 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Other operation activity related cash 1,420,751,619.23 867,764,855.43 receipts Subtotal of cash flow in from operating 1,454,047,876.02 889,196,924.24 activity Cash paid for purchase of goods and reception of labor services Cash paid to and for staff 26,099,198.03 18,989,965.73 Taxes paid 4,034,111.40 4,030,582.74 Other business activity related cash 1,457,278,717.28 980,594,240.37 payments Subtotal of cash flow out from operating 1,487,412,026.71 1,003,614,788.84 activity Net cash flows arising from operating -33,364,150.69 -114,417,864.60 activities II. Cash flow arising from investment activities: Cash received from recovery of investment Cash received from investment income Net cash from disposal of fixed assets, intangible assets and recovery of other long 600.00 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 600.00 activity Cash paid for purchase/construction of fixed assets, Intangible assets and other 10,337,712.00 13,830,945.06 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 10,337,712.00 13,830,945.06 activity Net cash flow arising from investment -10,337,112.00 -13,830,945.06 activities: III. Cash flow arising from fund-raising activities: Cash received from absorbing 58,216,000.00 investment Cash received from loans 400,000,000.00 200,000,000.00 Other fund-raising related cash receipts Subtotal of cash flow in from fund raising 458,216,000.00 200,000,000.00 activity Cash paid for debt repayment 250,000,000.00 90,000,000.00 Cash paid for dividend/profit 4,779,026.14 6,242,457.22 distribution or repayment of interest Cash paid for other financing activities 6,106,577.91 20,702,825.65 27 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Sub-total cash flow paid for financing 260,885,604.05 116,945,282.87 activities Net cash flow arising from fund-raising 197,330,395.95 83,054,717.13 activities IV. Change of exchange rate influencing the -63,323.49 30,677.54 cash and cash equivalent V. Net increase of cash and cash 153,565,809.77 -45,163,414.99 equivalents Plus: Opening balance of cash and 269,098,346.02 292,055,169.74 cash equivalents VI. Ending balance of cash and cash 223,934,931.03 445,620,979.51 equivalents Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui II. Notes to the Adjustment of Financial Statements 1. The Company started implementing the updated standards for lease commencing from 2021 and adjusted the relevant items of the financial statements at the beginning of the very year involved in the initial implementation of the said standards Is it necessary to adjust the items of the balance sheet at the year beginning Yes Consolidated Balance Sheet In CNY Items December 31, 2020 January 01, 2021 Amount involved in the adjustment Current assets: Monetary capital 353,057,285.71 353,057,285.71 Notes receivable 48,192,442.15 48,192,442.15 Accounts receivable 475,598,684.88 475,598,684.88 Advance payments 16,612,773.76 16,612,773.76 Other receivables 52,902,779.63 52,902,779.63 Inventories 1,931,780,185.85 1,931,780,185.85 Other current assets 75,935,141.76 73,796,501.05 -2,138,640.71 Total current assets 2,954,079,293.74 2,951,940,653.03 -2,138,640.71 Non-current assets: Long-term equity 51,400,665.92 51,400,665.92 investment Investment in other equity 85,000.00 85,000.00 instruments Investment-oriented real 398,086,447.78 398,086,447.78 estate Fixed assets 352,734,280.76 352,734,280.76 28 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Use right assets 170,008,291.03 170,008,291.03 Intangible assets 37,859,316.51 37,859,316.51 Long-term expenses to be 130,017,587.99 130,017,587.99 apportioned Deferred income tax asset 80,913,800.35 80,913,800.35 Other non-current assets 13,536,307.13 13,536,307.13 Total non-current assets 1,064,633,406.44 1,234,641,697.47 170,008,291.03 Total assets 4,018,712,700.18 4,186,582,350.50 167,869,650.32 Current liabilities: Short term borrowings 542,673,278.09 542,673,278.09 Notes payable 3,581,360.00 3,581,360.00 Accounts payable 301,211,515.39 301,211,515.39 Advance receipt 9,991,850.67 9,991,850.67 Contract liabilities 18,213,396.49 18,213,396.49 Payroll payable to the 132,853,462.20 132,853,462.20 employees Taxes payable 68,925,271.90 68,925,271.90 Other payables 128,577,597.94 128,577,597.94 Dividends payable 1,639,513.77 1,639,513.77 Non-current liabilities due 370,030.00 370,030.00 within a year Other current liabilities 2,299,755.09 2,299,755.09 Total current liabilities 1,208,697,517.77 1,208,697,517.77 Non-current liabilities: Long-term borrowings 4,070,330.00 4,070,330.00 Lease liabilities 172,230,950.08 172,230,950.08 Deferred income 2,916,346.43 2,916,346.43 Deferred income tax liability 3,067,834.55 3,067,834.55 29 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Total non-current liabilities 10,054,510.98 182,285,461.06 172,230,950.08 Total liabilities 1,218,752,028.75 1,390,982,978.83 172,230,950.08 Owner’s equity: Capital stock 428,091,881.00 428,091,881.00 Capital reserve 1,021,490,387.78 1,021,490,387.78 Less: shares in stock 61,633,530.48 61,633,530.48 Other comprehensive 976,871.41 976,871.41 income Surplus reserve 246,531,866.87 246,531,866.87 Retained earnings 1,164,490,911.51 1,160,129,611.74 -4,361,299.76 Total owners’ equity attributable 2,799,948,388.09 2,795,587,088.32 -4,361,299.76 to the parent company Minority shareholders’ 12,283.34 12,283.34 equity Total owner’s equity 2,799,960,671.43 2,795,599,371.66 -4,361,299.76 Total liabilities and owners’ 4,018,712,700.18 4,186,582,350.49 167,869,650.32 equity Note to the Adjustment Inapplicable Balance Sheet, Parent Company In CNY Items December 31, 2020 January 01, 2021 Amount involved in the adjustment Current assets: Monetary capital 292,055,169.74 292,055,169.74 Accounts receivable 1,464,798.79 1,464,798.79 Other receivables 621,512,680.69 621,512,680.69 Other current assets 11,655,617.82 11,655,617.82 Total current assets 926,688,267.04 926,688,267.04 Non-current assets: Long-term equity 1,529,415,188.28 1,529,415,188.28 investment 30 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Investment in other equity 85,000.00 85,000.00 instruments Investment-oriented real 323,296,494.84 323,296,494.84 estate Fixed assets 224,709,747.39 224,709,747.39 Intangible assets 27,347,950.13 27,347,950.13 Long-term expenses to be 11,980,697.97 11,980,697.97 apportioned Deferred income tax asset 1,380,180.94 1,380,180.94 Other non-current assets 473,312.35 473,312.35 Total non-current assets 2,118,688,571.90 2,118,688,571.90 Total assets 3,045,376,838.94 3,045,376,838.94 Current liabilities: Short term borrowings 400,425,930.05 400,425,930.05 Accounts payable 1,481,135.49 1,481,135.49 Advance receipt 9,991,850.67 9,991,850.67 Contract liabilities 37,735.85 37,735.85 Payroll payable to the 25,256,531.70 25,256,531.70 employees Taxes payable 2,778,265.84 2,778,265.84 Other payables 240,824,305.37 240,824,305.37 Dividends payable 1,639,513.77 1,639,513.77 Other current liabilities 2,264.15 2,264.15 Total current liabilities 680,798,019.12 680,798,019.12 Non-current liabilities: Deferred income 2,377,718.35 2,377,718.35 Total non-current liabilities 2,377,718.35 2,377,718.35 Total liabilities 683,175,737.47 683,175,737.47 Owner’s equity: 31 FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Full Text Capital stock 428,091,881.00 428,091,881.00 Capital reserve 1,027,145,928.88 1,027,145,928.88 Less: shares in stock 61,633,530.48 61,633,530.48 Surplus reserve 246,531,866.87 246,531,866.87 Retained earnings 722,064,955.20 722,064,955.20 Total owner’s equity 2,362,201,101.47 2,362,201,101.47 Total liabilities and owners’ 3,045,376,838.94 3,045,376,838.94 equity Note to the Adjustment Inapplicable 2. Note to the retroactive adjustment of the previous comparative data according to the new standards for lease initially implemented from 2021 Inapplicable III. Auditor’s Report Has the first quarter report been audited No Board of Directors of FIYTA Precision Technology Co., Ltd. April 13, 2021 32