FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Summary Stock Code: 000026 200026 Short Form of Stock: FIYTA A, FIYTA B Announcement No: 2019-025 FIYTA HOLDINGS LTD. 2019 First Quarterly Report, Summary 1 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Summary 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 Quarterly 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 Quarterly Report. 2 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Summary 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 years No Year-on-year The same period of the Reporting period increase/decrease in the previous year reporting period Revenue in CNY 893,389,751.73 851,815,980.69 4.88% Net profit attributable to the Company’s 64,359,084.46 59,518,000.75 8.13% shareholders, in CNY Net profit attributable to the Company’s shareholders less the non-recurring items, in 61,517,359.28 54,825,312.90 12.21% CNY Net cash flows arising from operating activities, 10,730,388.47 67,632,201.86 -84.13% in CNY Basic earning per share (CNY/share) 0.1467 0.1357 8.11% Diluted earning per share (CNY/share) 0.1453 0.1357 7.07% Return on equity, weighted average 2.47% 2.38% 0.09% Increase/decrease at the end End of the reporting period End of the previous year of the year over the end of the previous year Total assets (in CNY) 3,579,986,668.73 3,599,691,650.26 -0.55% Net profit attributable to the Company’s 2,632,044,015.17 2,570,134,782.90 2.41% shareholders, in CNY Non-recurring gain/loss items and the amount involved In CNY Amount from the year beginning Items Note to the end of the reporting period Gain/loss from disposal of non-current assets, including the part offset -50,642.04 from 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 3,807,765.25 to the Company’s business and conform with the national standard amount or quantity) Other non-operating income and expenses other than the aforesaid -192,401.94 3 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Summary items Less: Amount affected by the income tax 722,996.09 Total 2,841,725.18 -- 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. Statement of total shareholders and shares held by the top 10 shareholders by the end of the reporting period 1. Quantity of the shares held by the common shareholders and preferred shareholders whose voting rights are restored and statement of shareholding by the top 10 shareholders In shares Total preference shareholders with the Total common shareholders at the end 31,835 voting power recovered at the end of the 0 of the reporting period reporting period (if any) Shareholding by top 10 shareholders Number of the Pledging or freezing Name of the Nature of the Shareholding Shareholding restricted shares Status of the Shareholder shareholder proportion quantity Quantity held shares AVIC International State corporate 36.79% 162,977,327 0 Holding Limited Domestic natural Wan Zhongbo 3.07% 13,599,327 0 persons Domestic natural #Yang Zugui 2.96% 13,108,917 0 persons Domestic natural Mo Jiadong 2.28% 10,084,635 0 persons National Social Security Fund 114 State corporate 2.18% 9,657,744 0 Portfolio Xizang Investment State corporate 1.12% 4,976,551 0 Co., Ltd. MANULIFE TEDA Domestic Fund- Minsheng non-state-owned 1.10% 4,893,559 0 Bank-MANULIFE corporate TEDA Value 4 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Summary Growth Oriented Additional Issue No. 351 Assets Management Program Shenzhen Heli Domestic Fengyuan non-state-owned 0.61% 2,704,000 0 Commerce & Trade corporate Co., Ltd. BANK OF COMMUNICATION S CO.,LTD - Domestic CHANGXIN non-state-owned 0.57% 2,532,201 0 QUANTIFIED corporate PIONEER EQUITY FUND BANK OF COMMUNICATION S CO.,LTD - CHANG XIN Domestic QUANTITATIVE non-state-owned 0.27% 1,201,200 0 TYPE SMALL DISH corporate STOCK SECURITIES INVESTMENT FUND Shares held by top 10 shareholders of unrestricted shares Share type Name of the Shareholder Quantity of unrestricted shares held a Share type Quantity CNY ordinary AVIC International Holding Limited 162,977,327 162,977,327 shares CNY ordinary Wan Zhongbo 13,599,327 13,599,327 shares CNY ordinary #Yang Zugui 13,108,917 13,108,917 shares CNY ordinary Mo Jiadong 10,084,635 10,084,635 shares National Social Security Fund 114 CNY ordinary 9,657,744 9,657,744 Portfolio shares CNY ordinary Xizang Investment Co., Ltd. 4,976,551 4,976,551 shares 5 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Summary MANULIFE TEDA Fund- Minsheng CNY ordinary Bank-MANULIFE TEDA Value Growth shares 4,893,559 4,893,559 Oriented Additional Issue No. 351 Assets Management Program Shenzhen Heli Fengyuan Commerce & CNY ordinary 2,704,000 2,704,000 Trade Co., Ltd. shares BANK OF COMMUNICATIONS CO.,LTD CNY ordinary - CHANGXIN QUANTIFIED PIONEER 2,532,201 shares 2,532,201 EQUITY FUND BANK OF COMMUNICATIONS CO.,LTD CNY ordinary - CHANG XIN QUANTITATIVE TYPE shares 1,201,200 1,201,200 SMALL DISH STOCK SECURITIES INVESTMENT FUND Explanation on associated relationship or consistent action of the above Inapplicable shareholders Note to the top 10 shareholders of ordinary shares involved in margin Inapplicable financing & securities lending (if any) Did the top ten common shareholders or top ten shareholders of unrestricted common shares conduct contractual repurchase during the reporting period? No 2. Total preferred shareholders and the shareholding by the top 10 preferred shareholders Inapplicable 6 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Summary Section 3 Significant Events Changes of the major financial data and financial indicators during the reporting period and the causes Items The amount at the end of The amount at the year Variation proportion (%) Cause of the movement the reporting period beginning Advance payments 20,318,636.22 13,666,816.33 48.67% It was mainly due to the increase of the advance payment during the reporting period over the year beginning Other non-current assets 5,458,879.75 8,949,160.42 -39.00% It was mainly due to the decrease of the payments for the refurbishment and equipment to be settled at the end of the reporting period over the year beginning Accounts payable 191,577,235.91 259,913,612.34 -26.29% It was mainly due to the partial payment for goods and the balance payment for the works of the Watch Industrial Base of Guangming New Zone during the reporting period Advance Receipts 27,695,233.88 16,459,445.00 68.26% It was mainly due to the increase of the advances on sales during the reporting period over the year beginning Payroll payable to the 34,559,516.76 69,779,037.83 -50.47% It was mainly due to that the employees year-end bonus of the year 2018 payable to the employees was paid during the reporting period. Taxes payable 36,099,094.50 55,923,171.92 -35.45% It was mainly due to the decrease of the VAT payable during the reporting period over the year beginning Other comprehensive income -9,009,290.73 -5,442,139.78 65.55% It was mainly due to the 7 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Summary influence of the converted difference in foreign currency statements during the reporting period Net cash flows arising from 10,730,388.47 67,632,201.86 -84.13% It was mainly due to the price operating activities of goods was paid during the reporting period and the amount of the accounts payable at the end of the reporting period decreased. Net cash flows arising from -50,729,730.85 -20,897,671.30 142.75% It was mainly due to the investment activities balance payment for the works of the Watch Industrial Base of Guangming New Zone partially paid during the reporting period Net cash flows arising from 22,731,443.97 63,445,267.85 -64.17% It was mainly due to the financing activities decrease of the bank loans over the same period of the previous year during the reporting period Net increase of cash and -17,400,331.36 109,826,844.65 -115.84% It was mainly due to the cash equivalents payment for goods and the balance payment for the works of the Watch Industrial Base of Guangming New Zone partially paid during the reporting period II. Progress of significant events, their effects and analysis on the solutions 1. Grant of the restricted A-shares was completed 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. The date of granting this part of restricted shares was January 11, 2019 (The lock-up period of these restricted shares was two years commencing from the date of granting). By January 30 2019, the work of granting the shares and registration for listing was completed. After the share granting, the Company's total capital stock increased to 442,968,881 shares. For the detail, refer to the Announcement on the Completion of Granting the Restricted A-Shares according to the Incentive Plan (Phase I) (2019-009) disclosed in Securities Times, Hong Kong Commercial Daily and www.cninfo.com. 8 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Summary 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 reviewed and approved the Proposal for Repurchase o the Company’s Partial Domestically Listed Foreign Shares (B Shares). For the detail, refer to the Announcement on the Resolutions of the 7th Session of the Ninth Board of Directors 2019-015 and the Proposal for Repurchase o the Company’s Partial Domestically Listed Foreign Shares (B Shares) 2019-017 disclosed in Securities Times, Hong Kong Commercial Daily and http://www.cninfo.com.cn. The said repurchase proposal is still necessary to be submitted to the General Meeting for discussion. In accordance with the relevant provisions of the Administration of Repurchase of Public Shares by Listed Companies Procedures (Trial Implementation), the Supplementary Provisions for Share Repurchase via Centralized Bidding Transactions by Listed Companies, the Rules of Shenzhen Stock Exchange for Implementation of Repurchase of Public Shares by Listed Companies, etc., the Company has disclosed the names of, the quantity of shares held by and the shareholding information of the top 10 shareholders and the top 10 shareholders of non-restricted shares one trading day before the publication of the resolution on share repurchase (namely April 4, 2019) and registered as at the date of registration of the equity of the general meeting (namely April 12, 2019). For the detail, refer to the Announcement on the Information of Shareholding by the Top Ten Shareholders before Share Repurchase 2019-020 and the Announcement on the Information of Shareholding by the Top Ten Shareholders before Share Repurchase 2019-022. Inquiry index of the provisional reports General on Significant Events Date of disclosure disclosed in the website. The Announcement on the Completion of Granting the Restricted A-Shares according to January 29, 2019 http://www.cninfo.com.cn/ the Incentive Plan (Phase I) (2019-009) Announcement on the Resolution of the 7th Session of the Ninth Board of Directors, Monday, April 08, 2019 http://www.cninfo.com.cn/ 2019-015 Proposal for the Repurchase of the Company’s Partial Domestically Listed Foreign Shares (B Monday, April 08, 2019 http://www.cninfo.com.cn/ Shares) 2019-017 Announcement on the Information of the Shareholding by the Top Ten Shareholders Friday, April 12, 2019 http://www.cninfo.com.cn/ before the Repurchase of the Shares 2019-020 Announcement on the Information of the Shareholding by the Top Ten Shareholders Saturday, April 20, 2019 http://www.cninfo.com.cn/ before the Repurchase of the Shares 2019-022 Progress of implementation of the stock repurchase Inapplicable Progress of implementation of reduction of the holding size of the shares repurchased by centralized bidding Inapplicable III. Commitments unfinished in implementation by the Company's actual controller, shareholders, related parties, acquirer and the Company, etc. in the reporting period Inapplicable 9 FIYTA HOLDINGS LTD. 2019 1st Quarterly Report, Summary IV. Prediction of the Operation Performances from January to June, 2019 Inapplicable V. Portfolio investment Inapplicable VI. Investment in derivatives Inapplicable VII. Registration Form of Activities of Reception for Investigation and Survey, Communications, Interviews, etc. in the Reporting Period Inapplicable VIII. Outward guarantee against regulations Inapplicable IX. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and its Related Parties Inapplicable FIYTA HOLDINGS LTD. Board of Directors April 23, 2019 10