FIYTA Precision Technology Co., Ltd. 2022 Annual Report, Summary
Stock Code: 000026;200026 Abbreviation of the Stock: FIYTA;FIYTA B Announcement No.: 2023-009
FIYTA Precision Technology Co., Ltd.
2022 Annual Report, Summary
I. Important Notice
This summary of the Annual Report is quoted out of the full text of the Annual Report. Investors desirous to understand
entirely the Company's operation results, financial position and future development planning are advised to carefully read
the full text of the Annual Report which is published in the medium designated by CSRC.
All the directors attended the board meeting for reviewing the Annual Report.
Indication of qualified audit opinion
Inapplicable
The profit distribution preplan or the preplan for conversion of reserve into capital for the reporting period reviewed by the
Board of Directors
Is there any public reserve converted into capital stock
No
Reviewed and approved by the Board of Directors , the Company's profit distribution preplan is summarized as follows:
based on the total share capital as at the date of record (with the shares in the special securities account for repurchase
deducted) when the profit distribution plan is implemented in the future, the Company is going to distribute dividend to all
the shareholders at the rate of CNY2.50 for every 10 shares (with the tax inclusive), 0 bonus shares (with the tax
inclusive),and no public reserve shall be converted into share capital.
Profit Distribution Preplan for Preferred Shares during the Reporting Period Approved by the Resolution of the Board of
Directors
Inapplicable
II. Company Profile
1. Company Information
Short form of the stock: FIYTA and FIYTA B Stock 000026 and 200026
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FIYTA Precision Technology Co., Ltd. 2022 Annual Report, Summary
Code
Stock Exchange Listed with Shenzhen Stock Exchange
Stock abbreviation before
None
change (if any)
Liaison Persons and
Secretary of the Board Securities Affairs Representative
Communication Information
Names Song Yaoming Xiong Yaojia
20th Floor, FIYTA Technology Building, 18th Floor, FIYTA Technology Building,
Office Address Gaoxin S. Road One, Nanshan District, Gaoxin S. Road One, Nanshan District,
Shenzhen Shenzhen
Fax 0755-83348369 0755-83348369
Tel. 0755-86013669 0755-86013669
Email investor@fiyta.com.cn investor@fiyta.com.cn
2. Summary of the Principal Business or Leading Products during the Reporting Period
(1) Principal Business
The Company bases its establishment and development on the aviation precision technology and material technology,
has been adhering to the values of “the leading role of brand, customer orientation, value creation, cooperation and
responsibility, learning and innovation", taking “inheriting of the spirit of aeronautical patriotism and creating a quality life”
as its mission, focusing on the watch industry; the core watch business has formed the business layout of “Brand +
Channel” which consists of the self-owned brand and retails of world brand watches. In addition, the Company is actively
exploring and cultivating new businesses such as precision techn ology and smart wears, which are in the stage of
continuous development.
The Company is deeply involved in the construction of professional watchmaking capabilities and brand operations, has
a number of self-owned brands such as "Fiyta", "Emile Chouriet", "Beijing" and "Jeep", covering different dimensions of
mid-to-high-end, popular professional, fashion and cool and so on. Of them, the core self-owned brand of "FIYTA" is
positioned as "a high-quality Chinese watch brand with aerospace watch as its characteristic". Relying on technology and
quality advantages, the Company has continuously provided professional chronograph watches for China's aerospace
industry. Through the idea of taking “the nation” as the core and "fashion" as the form, the Company has developed
differentiated products which match the "aerospace quality", carried out integrated marketing, continuously expanded
brand influence, and gradually established its leading position in the domestic industry.
In order to seize the opportunities in the domestic brand watch market, promote the long-term development of its own
brands, and expand the retail business of "Harmony" world brand watches, "Harmony" is committed to "becoming the
best comprehensive service provider of famous watches", and has long-term and in-depth cooperation with many famous
watch groups and brands; Relying on its industry-leading operation management capabilities and customer service
capabilities, it shall gradually become a professional high-end chain commercial brands of famous watches.
In recent years, the Company has relied on high-end precision manufacturing technology and industrial accumulation,
based on the development principle of “technology being homologous, the industry being same-rooted and value being
co-directional”, and extended the development of precision technology business and smart wears business. At present,
these two businesses have begun to take shape.
(2) About the Industry the Company Engaged in
The watch industry the Company is engaged in has a long history and profound cultural precipitation, and is one of the
representative industries of high-precision manufacturing with the nature of precision technology. The domestic watch
industry closely follows the national light industry modernization progress, and is flourishing with the Chinese national
craftsmanship and self-improvement culture. According to the strategic deployment of the 20th National Congress of the
Communist Party of China and the "Guiding Opinions on the High-quality Development of Light Industry in the 14th Five-
Year Plan" promulgated by the China Light Industry Federation, light industry, as an important consumer goods industry,
undertakes the mission of providing high-quality consumer products for the people, among which, watches because of
their multiple attributes of function and art, integrate a variety of needs of the new consumption era such as emotional
value and aesthetic experience, and gradually develop in the direction of quality, fashion and personalization, so as to
continuously meet the increasingly upgraded consumption needs of consumers.
With the improvement of national purchasing power and the growth of consumer demand, the overall scale of China's
consumer market has continued to expand, ranking the second in the world. The domestic watch consumer market has
also continued to grow at a compound growth rate of about 5% in the past five years. At present, under the guidance of
relevant national policies such as "dual circulation" and "common prosperity", the middle-income group as the target
consumer group of watches continues to expand, and is stimulating the consumption growth of urban clusters and
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FIYTA Precision Technology Co., Ltd. 2022 Annual Report, Summary
infiltrating the consumption demand of second- and third-tier cities. With the comprehensive release of travel policies, the
offline passenger flow is gradually restored, and the watch consumption market is expected to continue to maintain the
growth trend.
However, the rapidly growing domestic watch consumption market also shows significant differentiation. On the one hand,
with the differentiation of price ranges, watches in the middle and high-end price ranges present double growth trend in
both amount and quantity. The compound growth rate of the amount of Swiss watches exported to Chinese Mainland in
the past five years has exceeded 10%, significantly higher than the market average. As a whole, domestic watch brands
in the middle and low-end price ranges are facing greater pressure. On the other hand, with the differentiation of the
competition pattern, the head brand or channel is promoting M & A and integration in the industry and accelerating the
expansion of market share and further enhancing the concentration ratio relying on its competition advantages in scale,
operation management, resources integration and so on. The increasingly intensified challenge is forcing watch brands,
especially domestic watch brands to to make continuous efforts to improve the price range and market share of the
brands, and some domestic watch brands are rising after fierce competition.
The Company has had long-term prospects on watch industry, has been continuously cultivating and investing in the
core businesses of "FIYTA", the own brand and "Harmony” world watch retails, constantly consolidating the "brand power,
product power and channel power", and has been enjoying a good market share and industry position foundation. At
present, in the face of the opportunities and challenges embodied in the watch consumption market, the Company shall,
as always, maintain a positive attitude, take customer needs as the guide, adhere to the principle of high-quality
development, and promote the “FIYTA", the self-owned brand, to develop in the direction of high quality and
differentiation. "HARMONY" world watch retail is developing towards professionalization and benchmarking of operations
and services; at the same time, shall continue to promote digital transformation and upgrading, and further integrate
digital concepts and technologies into R&D, design, manufacturing, sales, services and other links in order to build its
digital ability to use data to empower value creation.
3. Summary of Accounting/Financial Data
(1) Summary of Accounting/Financial Data in the Past Three Years
Does the Company need to make retroactive adjustment or restatement of the accounting data of the previous years
No
In CNY
Increase/decrease of the
end of the reporting year
End of 2022 End of 2021 End of 2020
over the end of the
previous year
Total assets 4,117,143,911.99. 4,110,579,952.49 0.16% 4,018,712,700.18
Net profit attributable to the
3,136,423,492.15 3,013,232,642.53 4.09% 2,799,948,388.09
Company’s shareholders
Increase/decrease in the
2022 2021 reporting year over the 2020
previous year
Operating revenue 4,354,096,880.36 5,243,733,540.93 -16.97% 4,243,439,952.59
Net profit attributable to the
266,681,451.84 387,840,282.95 -31.24% 294,115,156.04
Company’s shareholders
Net profit less the non-
recurring profit/loss
249,791,455.73 369,418,754.83 -32.38% 269,095,012.41
attributable to the
Company’s shareholders
Net cash flows arising from
476,228,776.52 547,249,108.45 -12.98% 378,210,505.87
operating activities
Basic earning per share
0.6398 0.9036 -29.19% 0.6764
(CNY/share)
Diluted earning per share 0.6398 0.9036 -29.19% 0.6764
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FIYTA Precision Technology Co., Ltd. 2022 Annual Report, Summary
(CNY/share)
Return on equity, weighted
8.68% 13.39% -4.71% 10.78%
average (%)
(2) Major Accounting Data Based on Quarters
In CNY
The first quarter The second quarter The third quarter The fourth quarter
Operation Revenue 1,173,700,720.94 1,009,870,028.17 1,201,863,621.73 968,662,509.52
Net profit attributable to
the Company’s 86,354,073.76 54,338,710.53 89,108,590.17 36,880,077.38
shareholders
Net profit less the non-
recurring profit/loss
84,104,404.06 45,827,352.84 86,658,935.58 33,200,763.25
attributable to the
Company’s shareholders
Net cash flows arising
16,020,422.02 262,365,841.58 122,195,340.18 75,647,172.74
from operating activities
Are the above financial indicators or their totals significantly different from the financial indicators disclosed by the
Company in the quarterly and semi-annual reports?
No
4. Capital Stock and Shareholders
(1) Number of the common shareholders and preferred shareholders whose voting rights are restored and
shareholding by the top 10 shareholders
In shares
Total
Total
common
Total preference
shareholder Total preference
common shareholder
s at the end shareholders with the voting
shareholder s with the
of the month power recovered at the end
s at the end 31,527 36,789 voting power 0 0
before the of the month before the day
of the recovered at
date of of disclosing the Annual
reporting the end of
disclosing Report
period the reporting
the Annual
period
Report
Shareholding by top 10 shareholders
Names of Pledging, marking or
Nature of freezing
the Shareholdin Number of the restricted
the Number of shares held
Shareholder g proportion shares held Status of the
shareholder Quantity
s shares
AVIC
International State
39.02% 162,977,327 0
Holding corporate
Limited
Domestic
# Wu Jilin natural 4.30% 17,945,614 0
person
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FIYTA Precision Technology Co., Ltd. 2022 Annual Report, Summary
Domestic
# Xu
natural 1.26% 5,264,768 0
Guoliang
person
Domestic
Qiu Hong natural 0.57% 2,370,000 0
person
Domestic
#Zhu Rui natural 0.41% 1,702,600 0
person
Domestic
Li Shuyuan natural 0.33% 1,377,600 0
person
Domestic
# Qu Yongjie natural 0.30% 1,266,800 0
person
Domestic
# Zhang
natural 0.29% 1,228,200 0
Mingrong
person
Domestic
Lu Shaowen natural 0.28% 1,166,100 0
person
Domestic
Chen Hao natural 0.26% 1,088,943 0
person
Explanation on associated
relationship or consistent
The Company has no idea on whether the above 10 shareholders are associated or are acting in concert.
action of the above
shareholders
1. In addition to the 11,221,862 shares held through the ordinary securities account, Wu Jilin, one of the
shareholders of the Company, also holds 6,723,752 shares through the credit transaction guarantee
securities account. Therefore, Wu Jilin is actually holding 17,945,614 shares;
2. In addition to the 4,604,568 shares held through the ordinary securities account, Xu Guoliang, one of the
shareholders of the Company, also holds 660,200 shares through the credit transaction guarantee securities
account. Therefore, Xu Guoliang is actually holding 5,264,768 shares;
3. In addition to the 107,900 shares held through the ordinary securities account, Zhu Rui, one of the
Note the shareholders
shareholders of the Company, also holds 1,594,700 shares through the credit transaction guarantee
involved in margin financing
securities account. Therefore, Zhu Rui is actually holding 1,702,600 shares;
& securities lending (if any)
4. In addition to the 22,800 shares held through the ordinary securities account, Qu Yongjie, one of the
shareholders of the Company, also holds 1,244,000 shares through the credit transaction guarantee
securities account. Therefore, Qu Yongjie is actually holding 1,266,800 shares;
5. In addition to the 0 shares held through the ordinary securities account, Zhang Mingrong, one of the
shareholders of the Company, also holds 1,228,200 shares through the credit transaction guarantee
securities account. Therefore, Zhang Mingrong is actually holding 1,228,200 shares.
2. Total Preference Shareholders and the Shareholding by the Top 10 Preference Shareholders
Inapplicable
(3) Block Diagram of the Ownership and Control Relations between the Company and the Actual Controller
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FIYTA Precision Technology Co., Ltd. 2022 Annual Report, Summary
5. Status of Bonds Existing on the Date of Approval of the Annual Report
Inapplicable
III. Significant Events
1. About the Amendment of the Articles of Association
Reviewed and approved at the 7th session of the Tenth Board of Directors and 2021 Annual General Meeting, the
Company decided to revise partial articles of the Articles of Association of the Company according to the law and
regulations. For detail, please refer to the “Plan for Revising the Articles of Association” and “Announcement on the
Resolution of 2021 Annual General Meeting 2022-026 disclosed by the Company on http://www.cninfo.com.cn/ on April
23, 2022 and May 14, 2022 respectively.
Reviewed and approved at the 10th session of the Tenth Board of Directors, the Company, based on the authorization of
2019 1st Extraordinary General Meeting, 2021 1st Extraordinary General Meeting and 2021 5th Extraordinary General
Meeting, revised partial articles of the "Articles of Association" . For details, please refer to the Proposal for the
Amendment of the Articles of Association and the “Announcement on the Resolution of the 7th Session of the Tenth
Board of Directors 2022-046” disclosed by the Company on http://www.cninfo.com.cn/ on December 21, 2022.
2. Repurchase of Partial Domestically Listed Foreign Investment Shares (B-Shares)
The Company’s 2nd Session of the Tenth Board of Directors and the 5th Extraordinary General Meeting reviewed and
approved the “Proposal on Repurchase of Partial Domestically Listed Foreign Shares (B- Shares), and subsequently
disclosed the repurchase report and series of progress announcements in accordance with relevant regulations. Ended
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FIYTA Precision Technology Co., Ltd. 2022 Annual Report, Summary
November 29, 2022, the repurchase of the shares was finished in implementation and the relevant shares had been
canceled. For the detail, please refer to the “Announcement on the Expiration and the Implementation Result of the
Repurchase of Partial Domestically Listed Foreign Investment Shares (B-Shares) 2022-044”and the “Announcement of
Completion of the Cancellation of Partial Domestically Listed Foreign Investment Shares (B-Shares) as Repurchased and
Change of the Company’s Shares 2022-045 disclosed in the Securities Times, Hong Kong Commercial Daily and
http://www.cninfo.com.cn respectively on November 30, 2022 and December 17, 2022.
FIYTA Precision Technology Co., Ltd.
Board of Directors
March 18, 2023
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