FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
FIYTA Precision Technology Co., Ltd.
2021 Semi-annual Report
August, 2021
FIYTA Precision Technology Co., Ltd. 2021 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.
Zhang Xuhua, 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 future plan, development strategy, etc. involved in the Semi-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 risks possibly to be confronted with by the Company
and the countermeasures to be taken in Section 3 Discussion and Analysis by the Management
The Company intends neither to distribute any cash dividend nor bonus shares nor to convert any reserve into
share capital.
FIYTA Precision Technology Co., Ltd. 2021 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 Discussion and Analysis by the Management
Section 4 Corporate Governance
Section 5 Environment and Social Responsibility
Section 6 Significant Events
Section 7 Change of the Shares and Particulars about Shareholders
Section 8 About the Preferred Shares
Section 9 About Bonds
Section 10 Financial Report
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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 Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Definitions
Terms to be defined Refers to Definition
This Company, the Company or FIYTA Refers to FIYTA Precision Technology Co., 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.
Precision Technology Co. Refers to Shenzhen FIYTA Precision Technology Co., Ltd.
Science & Technology Development 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.
Harmony E-Commerce Limited Refers to Shenzhen Harmony E-Commerce Limited
Xunhang Co. Refers to Shenzhen XUNHANG Precision Technology Co., Ltd.
HARMONY (Hainan) Co. Refers to Harmony World Watches Center (Hainan) Ltd.
Shanghai Watch Industry Refers to Shanghai Watch Industry Co., Ltd.
Rainbow Ltd. Refers to Rainbow Digital Commercial Co., Ltd.
Shennan Circuit Refers to Shennan Circuit Co., Ltd.
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Section 2 Company Profile and Financial Highlights
I. Company Profile
Short form of the stock: FIYTA and FIYTA B Stock Code 000026 and 200026
Stock Exchange Listed with Shenzhen Stock Exchange
Company Name in Chinese FIYTA Precision Technology Co., Ltd.
Abbreviation of Registered Company
飞亚达公司
Name in Chinese
Company name in English (if any) FIYTA Precision Technology Co., Ltd.
Abbreviation of the Company name in
FIYTA
English (if any)
Legal Representative Zhang Xuhua
II. Liaison Persons and Communication Information
Secretary of the Board Securities Affairs Representative
Names Chen Zhuo Xiong Yaojia
20th Floor, FIYTA Technology Building, 18th Floor, FIYTA Technology Building,
Liaison Address Gaoxin S. Road One, Nanshan District, Gaoxin S. Road One, Nanshan District,
Shenzhen 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 2020 Annual Report.
2. Information Disclosure and Place where the Regular Reports are Prepared
There is no change in the newspapers designated for disclosing the information, the Internet website
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
designated by China Securities Regulatory Commission for publishing the Semi-annual Report, and the
place where the Company’s Semi-annual Report is prepared and available for inquiry. For the detail,
refer to 2020 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
Year-on-year
Same period of the previous
Reporting period increase/decrease in the
year
reporting period
Revenue, in CNY 2,777,519,521.34 1,581,834,715.03 75.59%
Net profit attributable to the Company’s
233,544,726.55 77,738,906.30 200.42%
shareholders, in CNY
Net profit attributable to the Company’s
shareholders less the non-recurring items, in 223,796,233.42 68,669,477.45 225.90%
CNY
Net cash flows arising from operating activities,
205,154,563.93 103,645,235.27 97.94%
in CNY
Basic earning per share (CNY/share) 0.5421 0.1775 205.41%
Diluted earning per share (CNY/share) 0.5421 0.1775 205.41%
Return on equity, weighted average 8.09% 2.91% 5.18%
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) 4,125,415,233.24 4,018,712,700.18 2.66%
Net profit attributable to the Company’s
2,857,159,599.38 2,799,948,388.09 2.04%
shareholders, in CNY
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
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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 Notes
Gain/loss from disposal of non-current assets, including the part
-73,807.46
written-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
12,113,496.28
to the Company’s business and conform with the national standard
amount or quantity)
Reversal of the impairment provision for receivables and
976,332.27
contract assets which have been tested individually for impairment
Other non-operating income and expenses other than the aforesaid
-587,690.85
items
Less: Amount affected by the income tax 2,679,837.11
Total 9,748,493.13 --
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
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Section 3 Discussion and Analysis by the Management
I. Main business the Company operated during the reporting period
(I) Principal Business and Operation Model
With the establishment and development originated from aviation precision manufacturing and material
technology, the Company is mainly carrying out the activities of watch brand management and luxurious
watch retails. From the perspective of technical characteristics, the Company is engaged in precision
technology industry.
Since its establishment, relying on the advantages in precision manufacturing technology, material
technology and talents of the aviation industry, the Company has been continuously devoting itself to the
building of professional watch-making capability and brand operation, has successfully built the "FIYTA"
brand and established the brand a leading position in the domestic industry by virtue of the advantages
in technology and quality, and has cultivated watch brands of different styles such as " Emile Chouriet ", "
JONAS&VERUS ", "Beijing" and "JEEP" to meet the needs of market segments.
In order to grasp the opportunities in the domestic famous brand watch market and accelerate the
breakthrough of its own brand, the Company began to expand the retail chain business of famous brand
watches in 1997, and is committed to becoming the most outstanding comprehensive service provider of
famous brand watches. The Company has always focused on strengthening the construction of brand
resources and channel resources, deepening the cooperative relationship between international
excellent watch brands and domestic high-end retail channels, refined operations, and digital
development. While expanding the Company’s revenue sources, it has also established stable base are
for the development of its own brand.
Under the general background of industrial upgrading and intelligent manufacturing, the Company relies
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 extends the development of precision technology business and smart wearable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
business. At present, these two businesses have begun to take shape.
(II) Development of the Industry the Company Engaged in
In recent years, with the increase in national disposable income and the expansion of middle-income
group, people's yearning for a better life and demand for high-quality life have driven consumption
upgrades. The domestic watch consumer market is ushering in new development opportunities.
1. Domestic economic growth promotes the overall expansion of the watch consumer market
During the "13th Five-Year Plan" period, the domestic economy continued to grow, breaking through
CNY 100 trillion for the first time by 2020. China has also become the only major economy in the world
that has achieved positive economic growth since the outbreak of the COVID-19. The advantages of the
domestic market scale have gradually emerged, and the potential for domestic demand has been
continuously released. The five-year compound growth rate of the total retail sales of domestic
consumer goods reached 6.47%, of which the five-year compound growth rate of domestic watch
consumption exceeded 7%, and the market scale continued to expand to around CNY 80 billion. In the
first half of 2021, the domestic economy and consumption continued to grow rapidly year-on-year.
2. Domestic consumption upgrading has promoted the explosive growth of mid-to-high-end luxury watch
consumption
Thanks to the continuous growth of the domestic economy, the five-year compound growth rate of per
capita GDP has reached 7.6%, and exceeded US$10,000 by 2020, accelerating the overall upgrade of
the consumption structure to high-quality and intelligent, as a representative of quality consumption,
the mid-to-high-end luxury watches has been growing rapidly. According to data disclosed by the
Federation of the Swiss Watch Industry, the average export price of Swiss watches has increased from
about CNY 5,000 to about CNY 10,000 in the past five years. In the first half of 2021, the export value of
Swiss watches increased by 54.77% year-on-year, and the value of exports to Mainland China increased
by 89.62% year-on-year. Mainland China is still the world's largest market for Swiss watches.
3. The rise of national tide consumption creates new opportunities for self-owned brands
Driven by China’s manufacture planning policy and supply-side reforms, the quality of domestic products
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
has been greatly improved, cultural confidence has continued to rise, and consumers’ local cultural
awareness has been gradually recovered. In addition, the development of digital retail has broadened
consumers’ awareness of domestic brands. Batches of outstanding domestic brands have emerged
rapidly. According to data released by EqualOcean Intelligence, consumers' attention to Chinese brands
will increase to 70% in 2020, and high-quality, more fashionable, and more cutting-edge domestic
brands are attracting more and more consumers.
(III) The Company’s Market Position
The company has focused on the watch industry. After years of hard work, it has grown into the flagship
enterprise of Chinese watches, and has been ranked first in China's watch industry for many
consecutive years.
The Brand "FIYTA" is one of China's most well-known watch brands that have grown up under the
market economy after China’s reform and opening-up. The Company has adhered to the original
intention of "Big Country Brand", relying on precision manufacturing technology, brand perception and
deep cultivation of channels to promote continuous brand breakthroughs, and its sales scale ranks
among the top in the industry. In 2017, the Brand was selected as the unique watch brand in the country
in the "Made-in-China" Brand Plan by the Ministry of Commerce; FIYTA won the "China Grand Awards
for Industry" in 2018, and was honorably put on the "70 Top Brands for the 70th Anniversary of the
Founding of New China" List in 2019, and honorably won the "People's Ingenuity Brand Award 2019".
2020, the Company honorably won the title of “the 40 Brand Makers in the Past 40 Years of Shenzhen”;
Sun Lei, the Company’s chief designer, won the title of “40 Persons of Innovation and Entrepreneurship
and Model Worker.” In 2021, with successful launch of the “Shenzhou 12” manned spacecraft, the
Company was awarded the title of “International Credit Brand”and has insisted on helping China's space
exploration cause.
After more than two decades’ development, Harmony World Watches has been operating brand watch
retail business in more than 60 cities across the country and has nearly 220 chain stores. It has
established abound brand and channel resources and good operating ability, and its market share ranks
domestically forefront in the watch retail industry.
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
II. Analysis on Core Competitiveness
During the reporting period, there was no significant change in the Company's core competitiveness. For
the detail, refer to 2020 Annual Report.
III. Analysis on Principal Businesses
I. General
In the first half of 2021, the domestic consumer market as a whole continued the trend of gradual
recovery since COVID-19, and the total retail sales of domestic social consumer goods increased
significantly year-on-year. The Company seized the development opportunities in the consumer market,
and on the basis of continuing to improve its capabilities and consolidating its advantages, the Company
resolutely implemented the “Big Country Brand” development strategy, accelerated channel upgrades,
digital construction and cultivation of new growth points, and continued to maintain rapid growth in
operating performance. During the reporting period, the Company achieved operating income of CNY
2,777,519,521.34, an increase of 55.6% over the same period of 2019 and an increase of 75.59% over
the same period of last year. Among them, the operating income of the second quarter was a relatively
high level in the same period of last year and achieved a year-on-year increase of 41.76%, a
month-on-month increase. The quarter also increased slightly; the total profit achieved was CNY
302,114,185.89, an increase of 229.65% over the same period last year. At the same time, the Company
continued to consolidate basic management, and the efficiency and efficiency indicators continued to
improve. The return on net assets reached 8.09%, an increase of 5.18 percentage points year-on-year;
the inventory turnover rate reached 0.84 times, an increase of 0.32 times year-on-year.
During the reporting period, the Company carried out the following key work.
(I) Promoting the epidemic prevention and control work steadily, and having achieve “zero
suspicion and zero diagnosed case” throughout the year
In the first half year of 2021, the epidemic recurred in some regions in China. The Company's
management team continued to follow the overall deployment of the Party Central Committee and
superiors, strictly implemented the epidemic prevention and control policy, implemented responsibilities
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
at all levels, and continued to maintain the “zero suspicion and zero diagnosed case” prevention and
control results. Ensure the health of employees and the stable development of business operations.
(II) Continue to improve professional capabilities and further consolidate core competitive
advantages
During the reporting period, the Company implemented the “big country brand” development strategy,
focused on “brand power, product power, and channel power” to enhance professional operating
capabilities and consolidate core competitive advantages. The FIYTA brand solidly promotes the
integration of product and sales, and implements precision marketing through multiple channels; focuses
on the core series and promotes the development of new products in an orderly manner. The new
products of “AEROSPACE”, “ALLURE”, “EXTREME” and “HEARTSTRING”, etc. have been successfully
launched in the market; deepen implementation of the special work of promoting "Excellent Operation"
and "Excellent Sales", the average customer unit price of offline channels increased by 14.3%
year-on-year, and the gross profit margin continued to increase. HARMONY continued to deepen refined
operations centered on customer unit prices, sales discounts and service enhancements. The average
unit output increased by 71.30% year-on-year, and the growth rate of core brand revenue exceeded the
overall average growth rate.
(III) Continue to promote channel optimization and upgrade, and actively seize new market
opportunities
During the reporting period, the Company continued to promote channel optimization and upgrade, and
actively seize new market opportunities. The FIYTA Brand continued to promote the presence of
shopping mall stores and made positive progress. HARMONY continued to promote the upgrading of
channels and brand structure, with mid-to-high-end channels accounting for more than 50%, and it
confirmed the cooperation with the first store of Richemont's high-end collection store - TIME Vallee. At
the same time, on the basis of in-depth cooperation between its own brand and tax-free channels, the
Company continued to promote the layout of the Hainan offshore islands' duty-free market, and
established a wholly-owned subsidiary in Hainan.
(IV)Accelerating digital transformation and enhancing digital operation capabilities
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
During the reporting period, the Company accelerated digital transformation and continuously enhanced
digital operation capabilities The FIYTA Brand continued to promote the improvement of CRM system
functions, the number of offline channel members and the proportion of sales have rapidly increased,
and the effectiveness of member operations has gradually emerged. HARMONY has accelerated the
iterative upgrade of its digital retail system. The amount of potential customers and repurchase of regular
customers increased by 10% compared with the whole year of last year. Operational capabilities and
customer experience continued to improve.
(V) Insisting on innovation-drive and accelerating the cultivation and development of new
businesses
During the reporting period, the Company accelerated the cultivation and development of precision
technology and smart wearables businesses. On the basis of deep cultivation of optical communications
and lasers, the precision technology business has accelerated the expansion of new markets and new
customers in medical and aerospace, and has achieved further breakthroughs. The sales of smart
wearables through the self-operated channels and leading products grew steadily, and operating income
increased by 228% year-on-year.
Movements of the Key Financial Items are summarized as follows:
In CNY
Same period of the Year-on-year
Reporting period Cause of the movement
previous year increase/decrease
Mainly due to growth of
Operating revenue 2,777,519,521.34 1,581,834,715.03 75.59% retail business of
HARMONY World Watch
Mainly due to the increase
Operating cost 1,738,149,481.70 977,435,676.87 77.83% in costs corresponding to
the increase in revenue.
Mainly due to the increase
in labor, counter
Sales costs 561,630,052.63 380,928,312.51 47.44% depreciation and promotion
expenses related to
revenue growth.
Overheads 121,391,665.85 98,240,348.73 23.57% Inapplicable
Financial expenses 20,777,273.71 16,528,943.36 25.70% Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Mainly due to the increase
Income tax expenses 68,549,402.06 13,907,911.89 392.88%
of total profit.
R&D input 26,370,064.68 20,704,270.76 27.37% Inapplicable
Net cash flows arising from Mainly due to the increase
205,154,563.93 103,645,235.27 97.94%
operating activities in payment received.
Mainly due to the
year-on-year increase in
Net cash flow arising from
-80,118,132.80 -53,892,827.56 -48.66% expenditures for new stores
investment activities
and improvement of old
stores.
Mainly due to the
year-on-year decrease in
Net cash flows arising from the amount of net
-242,539,992.12 -19,875,245.29 -1,120.31%
financial activities borrowings and the
year-on-year increase in the
amount of dividends.
Mainly due to the
year-on-year decrease in
Net increase of cash and the amount of net
-118,217,129.02 29,813,076.59 -496.53%
cash equivalents borrowings and the
year-on-year increase in the
amount of dividends.
Mainly due to the increase
Taxes and surcharges 16,455,961.46 7,270,983.69 126.32%
in VAT due to sales growth.
Mainly due to the increase
Other business activity
244,079,540.08 165,926,224.21 47.10% in expenses arising from
related cash payments
the increase in revenue.
Cash paid for
purchase/construction of Mainly due to the increase
fixed assets, Intangible 80,158,290.74 53,912,380.03 48.68% in expenses for store
assets and other long term refurbishment.
assets
Significant change in profit composition or profit sources during the reporting period.
Inapplicable
Composition of Revenues
In CNY
Reporting period Same period of the previous year
Year-on-year
Proportion in the Proportion in the
Amount Amount increase/decrease
revenue revenue
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Total operating
2,777,519,521.34 100% 1,581,834,715.03 100% 75.59%
revenue
Based on sectors
Watches 2,637,347,983.49 94.95% 1,463,489,661.92 92.52% 80.21%
Precision technology
59,305,901.13 2.14% 59,445,727.65 3.76% -0.24%
business
Leases 74,149,889.89 2.67% 56,149,280.30 3.55% 32.06%
Others 6,715,746.83 0.24% 2,750,045.16 0.17% 144.20%
Based on products
Watch brand business 541,632,277.89 19.50% 378,593,080.99 23.93% 43.06%
Watch retail and
2,095,715,705.60 75.45% 1,084,896,580.93 68.58% 93.17%
services
Precision technology
59,305,901.13 2.14% 59,445,727.65 3.76% -0.24%
business
Leases 74,149,889.89 2.67% 56,149,280.30 3.55% 32.06%
Others 6,715,746.83 0.24% 2,750,045.16 0.17% 144.20%
Based on regions
South China 1,404,978,399.03 50.58% 791,143,597.98 50.01% 77.59%
Northwest China 414,691,758.15 14.93% 244,986,597.57 15.49% 69.27%
Northeast China 138,241,583.29 4.98% 81,410,583.11 5.15% 69.81%
East China 381,212,790.12 13.72% 207,949,022.33 13.15% 83.32%
Northeast China 158,038,232.08 5.69% 81,751,729.88 5.17% 93.31%
Southwest China 280,356,758.67 10.09% 174,593,184.16 11.04% 60.58%
Sector(s), Product(s) or Region(s) Taking over 10% of the Operating Revenue or Operating Profit
In CNY
Year-on-year Year-on-year Year-on-year
increase/decrease increase/decrease increase/decrease
Turnover 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 2,637,347,983.49 1,668,658,537.23 36.73% 80.21% 83.35% -1.08%
Precision
technology 59,305,901.13 50,325,177.66 15.14% -0.24% 2.10% -1.94%
business
Leases 74,149,889.89 17,983,437.19 75.75% 32.06% 1.28% 7.37%
Others 6,715,746.83 1,182,329.62 82.39% 144.20% 276.42% -6.18%
Based on products
Watch brand
541,632,277.89 146,067,135.87 73.03% 43.06% 37.25% 1.14%
business
Watch retail and 2,095,715,705.60 1,522,591,401.36 27.35% 93.17% 89.46% 1.42%
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
services
Precision
technology 59,305,901.13 50,325,177.66 15.14% -0.24% 2.10% -1.94%
business
Leases 74,149,889.89 17,983,437.19 75.75% 32.06% 1.28% 7.37%
Others 6,715,746.83 1,182,329.62 82.39% 144.20% 276.42% -6.18%
Based on regions
South China 1,404,978,399.03 889,860,554.75 36.66% 77.59% 86.31% -2.96%
Northwest China 414,691,758.15 259,657,596.40 37.39% 69.27% 61.31% 3.09%
Northeast China 138,241,583.29 77,705,058.33 43.79% 69.81% 63.64% 2.12%
East China 381,212,790.12 240,148,390.50 37.00% 83.32% 88.32% -1.67%
Northeast China 158,038,232.08 103,609,783.42 34.44% 93.31% 84.64% 3.08%
Southwest China 280,356,758.67 167,168,098.30 40.37% 60.58% 55.21% 2.06%
While adjustment of the statistical caliber for the principal business data took place in the reporting
period, the principal business data with the statistical caliber adjusted at the end of the reporting period
in the latest year.
Inapplicable
Causes of the change in the relevant data by over 30%
Inapplicable
IV. Analysis on Non-Principal Businesses
Inapplicable
V. Analysis on Assets and Liabilities
1. Significant Changes in Assets Composition
In CNY
End of the reporting period End of the previous year Proportion
Note to significant
Proportion in total Proportion in total increase/decr
Amount Amount changes
assets assets ease
Monetary fund 234,840,156.69 5.69% 353,057,285.71 9.03% -3.34% Inapplicable
Accounts
493,350,677.26 11.96% 475,598,684.88 11.16% 0.80% Inapplicable
receivable
Contract assets 0 0.00% 0 0.00% 0.00% Inapplicable
Inventories 2,014,209,378.86 48.82% 1,931,780,185.85 46.86% 1.96% Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Investment-oriente
390,386,341.42 9.46% 398,086,447.78 10.42% -0.96% Inapplicable
d real estate
Long-term equity
53,029,994.16 1.29% 51,400,665.92 1.27% 0.02% Inapplicable
investment
Fixed assets 350,973,834.39 8.51% 352,734,280.76 9.23% -0.72% Inapplicable
Construction-in-pro
0 0.00% 0 0.00% 0.00% Inapplicable
cess
Use right assets 145,971,912.86 3.54% 0 0.00% 3.54% Inapplicable
Short term loans 460,023,601.43 11.15% 542,673,278.09 17.55% -6.40% Inapplicable
Contract liabilities 18,658,899.34 0.45% 18,213,396.49 0.56% -0.11% Inapplicable
Long-term
3,702,300.00 0.09% 4,070,330.00 0.11% -0.02% Inapplicable
borrowings
Lease liabilities 52,886,029.26 1.28% 0 0.00% 1.28% Inapplicable
2. Major Overseas Assets
Inapplicable
3. Assets and liabilities measured based on fair value
Inapplicable
4. Restriction on rights in the assets ended the reporting period
A property owned by Switzerland based Montres Chouriet SA with net value of CNY 210,771.28 was
used as a collateral for the overseas long term loan amounting to CNY 3,702,300.00. Part of the notes
receivable of the Technology Development Co. has been discounted, with a net value of CNY
6,662,928.59.
VI. Analysis of Investment Situation
1. General
Amount of investment in the reporting period Amount of investment in the same period of the
Amount of variation
(CNY) previous year (CNY)
20,000,000.00 0.00 -
Note 1: The Company's 23rd Session of the Ninth Board of Directors reviewed and approved the
"Proposal on the Establishment of a Wholly Owned Subsidiary” and decided to invest in the
establishment of a wholly-owned subsidiary - Shenzhen Xunhang Precision Technology Co., Ltd., with
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
its own capital amounting to CNY10 million. The establishment of the wholly-owned subsidiary was
completed on April 7, 2021. For the detail, refer to the relevant announcement disclosed in the Securities
Times, Hong Kong Commercial Daily and http://www.cninfo.com.cn. on April 9, 2021.
Note 2: The Company's 29th Session of the Ninth Board of Directors reviewed and approved the
"Proposal on the Establishment of a Wholly Owned Subsidiary - HARMONY World Watch Center
(Hainan) Limited with its own capital amounting to CNY10 million. The establishment of the
wholly-owned subsidiary was completed on June 17, 2021. For the detail, refer to the relevant
announcement disclosed in the Securities Times, Hong Kong Commercial Daily and
http://www.cninfo.com.cn. on June 19, 2021.
2. Significant Equity Investment Acquired in the Reporting Period
Inapplicable
3. Significant non-equity investment in process in the reporting period
Inapplicable
4. Financial assets investment
(1) Portfolio investment
Inapplicable
(2) Investment in derivatives
Inapplicable
VII. Sales of Significant Assets and Equity
1. Sales of Significant Assets
Inapplicable
2. Sales of Significant Equity
Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
VIII. 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
Company Company Principal Registered
Total assets Net assets Turnover Operating profit Net profit
name type business capital
Shenzhen Purchase &
Harmony sale and
World Subsidiarie repairing 600,000,000.0 2,058,016,313.9 1,073,492,359.1 2,069,494,717.0 226,173,547.2 169,041,460.5
Watches s service of 0 2 2 8 6 8
Center Co., watches and
Ltd. components
Design, R &
D and sales
FIYTA Sales of watches 450,000,000.0
Subsidiary 554,433,797.39 401,831,615.07 317,293,177.79 9,906,637.29 6,004,046.28
Co., Ltd. and 0
components
& parts
Shenzhen Manufacture
FIYTA and
100,000,000.0
Precision Subsidiary production of 356,495,730.93 299,036,529.27 196,651,227.06 36,798,043.04 33,302,434.89
0
Technology watches and
Co., Ltd. components
Production
Shenzhen and
FIYTA machining of
Technology Subsidiary sophisticate 50,000,000.00 160,748,659.73 123,651,658.53 71,140,529.89 4,250,754.36 4,341,363.18
Developmen d
t Co., Ltd. components
and parts
Trading of
FIYTA (Hong watches and
137,737,520.0
Kong) Subsidiary accessories 241,330,113.95 202,562,607.59 63,249,052.18 11,637,560.61 10,573,533.38
0
Limited and
investment
Design, R &
Shiyuehui
D and sales
Boutique
Subsidiary of watches 5,000,000.00 51,261,306.54 -2,609,523.62 16,621,109.48 1,404,189.65 405,912.21
(Shenzhen)
and
Co., Ltd.
components
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
& parts
Liaoning Purchase &
Hengdarui sale of
Commerce & Subsidiary watches and 51,000,000.00 133,402,352.93 43,058,863.27 4,501,307.37 1,004,056.01 754,291.99
Trade Co., components
Ltd. & parts
Purchase &
Shenzhen
sale of
Harmony
Subsidiary watches and 10,000,000.00 14,336,337.85 13,265,658.63 566,027.74 48,426.29 47,215.63
E-Commerc
components
e Limited
& parts
Design, R &
Emile D and sales
Chouriet of watches
Subsidiary 41,355,200.00 122,532,762.64 60,643,595.51 51,642,189.33 6,777,425.62 5,071,925.17
(Shenzhen) and
Limited components
& parts
Acquisition and disposal of subsidiaries in the reporting period
Way of acquisition and disposal of subsidiaries Impact upon the overall production and
Company name
in the reporting period operation and performances
The establishment of a wholly-owned
subsidiary is conducive to promoting the
Shenzhen XUNHANG Precision Technology business expansion of smart wearables and
Newly established
Co., Ltd. precision technology, and will have a positive
impact on the long-term development and
benefit improvement of the Company.
The establishment of a wholly-owned
subsidiary this time is conducive to grasping
the policy opportunity of the Hainan Free Trade
Harmony World Watches Center (Hainan) Ltd. Newly established Port and the development opportunity of the
tax-free market, and will have a positive impact
on the Company's long-term development and
efficiency improvement.
Note to the principal mutual shareholding companies
Inapplicable
IX. Structurized Entities Controlled by the Company
Inapplicable
X. Risks Possibly to be Confronted with
(I) The watch market is severely differentiated, and the middle-grade watch brand market is
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
fiercely competitive
With the intensification of consumer income stratification, the trend of brand polarization is obvious,
high-end and fashion watch brands are growing at a high speed, but middle-grade mass brands are still
facing severe market challenges. However, with the rise of the national trend of consumer culture, new
development opportunity has emerged on the track of independent brands. The Company shall focus on
strengthening its core competitive advantages, accelerate the construction of a digital business
operation system and driving-unit capability, and continue to enhance the competitiveness of its own
brand.
(II) Evolution of high-end consumer demand and preferences, increasing pressure on offline
retail channels
Change is taking place in the structure of channels in which consumers buy luxuries. The increase of
online channels and offshore tax-free channels has caused impact on the offline channel sales to some
degree. However, benefited by the flow-back of overseas consumption and increment of resources in the
domestic market, the capacity of the domestic luxuries market has been expanded overally and China is
hopeful to become the biggest luxuries consumption market globally. The Company shall center on
customers, insist on consolidating the advantage of core competitiveness, enhance customers’
experience of our consumption services and improve the market share.
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Section 4 Corporate Governance
I. General Meeting and Extraordinary General Meetings
1. General Meetings
Proportion of
Resolutions of the
Sessions Meeting type attendance of the Meeting date Date of disclosure
meetings
investors
Announcement on the
2021 1st Extraordinary Extraordinary General Resolution of 2021 1st
38.17% January 06, 2021 January 07, 2021
General Meeting Meeting Extraordinary General
Meeting, 2021-002
Announcement on the
2021 2nd
Extraordinary General Resolution of 2021 2nd
Extraordinary General 40.45% February 24, 2021 February 25, 2021
Meeting Extraordinary General
Meeting
Meeting, 2021-023
Announcement on the
2020 Annual General Annual General Resolution of 2020
44.48% May 07, 2021 May 08, 2021
Meeting Meeting Annual General
Meeting, 2021-045
2. Extraordinary general meeting requested for holding by the preferred shareholders with the
voting power recovered.
Inapplicable
II. Personnel Change in Directors, Supervisors and Senior Executives
Names Office Taken Type Date Cause
Appointed as a non-independent director of the Ninth Board
Zhang Xuhua Director Being elected July 01, 2021 of Directors at the 30th session of the Ninth Board of
Directors and 2021 3rd Extraordinary General Meeting.
Chairman of the Appointed as the Chairman of the Board at the 31st session
Zhang Xuhua Being elected July 01, 2021
Board of the Ninth Board of Directors.
Appointed as a non-independent director of the Ninth Board
Zhang Zhibiao Director Being elected February 24, 2021 of Directors at the 26th session of the Ninth Board of
Directors and 2021 2nd Extraordinary General Meeting.
Appointed as a non-independent director of the Ninth Board
Xiao Yi Director Being elected February 24, 2021 of Directors at the 26th session of the Ninth Board of
Directors and 2021 2nd Extraordinary General Meeting.
Appointed as a non-independent director of the Ninth Board
Li Peiyin Director Being elected February 24, 2021
of Directors at the 26th session of the Ninth Board of
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Directors and 2021 2nd Extraordinary General Meeting.
Appointed as a non-independent director of the Ninth Board
Pan Bo Director Being elected February 24, 2021 of Directors at the 26th session of the Ninth Board of
Directors and 2021 2nd Extraordinary General Meeting.
Appointed as a supervisor of the Ninth Supervisory
Zheng Qiyuan Supervisor Being elected February 24, 2021 Committee at the 23rd session of the Ninth Supervisory
Committee and 2021 2nd Extraordinary General Meeting.
Chairman of the Appointed as the Chairman of the Ninth Supervisory
Zheng Qiyuan Supervisory Being elected March 08, 2021 Committee at the 24th session of the Ninth Supervisory
Committee Committee.
Appointed as a supervisor of the Ninth Supervisory
Cao Zhen Supervisor Being elected February 24, 2021 Committee at the 23rd session of the Ninth Supervisory
Committee and 2021 2nd Extraordinary General Meeting.
Appointed as the GM at the 25th session of the Ninth Board
Pan Bo GM Being appointed January 15, 2021
of Directors.
Secretary of the Appointed as the Secretary of the Board at the 25th session
Chen Zhuo Being appointed January 15, 2021
Board of the Ninth Board of Directors.
resigned as a director, Chairman of the Board, a member of
the Strategy Committee and Audit Committee of the of the
Chairman of the
Huang Yongfeng Retired June 11, 2021 Ninth Board of Directors in the Company due to the job
Board
transfer. He no longer holds any position in the Company
after his resignation.
resigned as a director, a member of the Strategy Committee
and Audit Committee of the of the Ninth Board of Directors
Wang Mingchuan Director Retired February 02, 2021
due to the job transfer. He no longer holds any position in
the Company after his resignation.
Resigned as a director, a member of the Nomination,
Remuneration and Assessment Committee of the of the Ninth
Fu Debin Director Retired February 02, 2021
Board of Directors due to the job transfer. He no longer
holds any position in the Company after his resignation.
Resigned as a director, a member of the Nomination,
Remuneration and Assessment Committee of the of the Ninth
Wang Bo Director Retired February 02, 2021
Board of Directors due to the job transfer. He no longer
holds any position in the Company after his resignation.
resigned as a director, a member of the Strategy Committee
and Audit Committee of the of the Ninth Board of Directors
Chen Libin Director Retired February 02, 2021
due to the job transfer. He still holds other positions in the
Company after his resignation.
resigned as a supervisor and the chairman of the Ninth
Chairman of the
Supervisory Committee due to the job transfer. He no
Wang Baoying Supervisory Retired February 24, 2021
longer holds any position in the Company after his
Committee
resignation.
resigned as a supervisor of the Ninth Supervisory Committee
Fang Jiasheng Supervisor Retired February 24, 2021
due to the job transfer. He still holds other positions in the
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Company after his resignation.
resigned as the GM of the Company. He still holds other
Chen Libin GM Termination January 14, 2021
positions in the Company after his resignation.
Deputy GM and resigned as Deputy GM of the Company and the Secretary of
Pan Bo the Secretary of Termination January 14, 2021 the Board. He still holds other positions in the Company after
the Board his resignation.
resigned as Deputy GM of the Company. He no longer holds
Xu Chuangyue Deputy GM Termination February 03, 2021
any position in the Company after his resignation.
III. Profit Distribution and Conversion of Capital Reserve into Share Capital in the Reporting
Period
Inapplicable
IV. Implementation of the Company’s Equity Incentive Plan, Employee Stock Ownership Plan or
other Employee Incentive Measures
1. Restricted A-Share Incentive Plan 2018 (Phase I)
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
Plan (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. For the detail, refer to the relevant announcement
disclosed in the Securities Times, Hong Kong Commercial Daily and http://www.cninfo.com.cn. on
January 12, 2019. This part of A-share restricted stock was all granted and registered for listing by
January 30, 2019. The specific implementation during the reporting period is summarized as follows:
The Company held its 24th session of the Ninth Board of Directors held on December 29, 2020 and
considered that the release conditions had been satisfied for the First Release Period of 2018 Restricted
A-Share Incentive Plan (Phase I). The number of restricted A-share incentive shares involved in the
release of restriction was totally 1,357,641 shares. This part of the restricted shares with the restriction
relieved got listed for trading on February 1, 2021. For the detail, refer to the relevant announcement
disclosed in the Securities Times, Hong Kong Commercial Daily and http://www.cninfo.com.cn. on
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
January 29, 2021.
The 26th session of the Ninth Board of Directors and 2021 2nd Extraordinary General Meeting decided
to repurchase and cancel the 51,359 restricted A-shares which were already granted to but with the
restriction not yet relieved and held by 1 retired and 1 deceased incentive objects. For the detail, refer to
the relevant announcement disclosed in the Securities Times, Hong Kong Commercial Daily and
http://www.cninfo.com.cn. on February 5, 2021 and February 25, 2021.
The 28th session of the Ninth Board of Directors and 2020 Annual General Meeting decided to
repurchase and cancel the 40,020 restricted A-shares which were already granted to but with the
restriction not yet relieved and held by 2 retired incentive objects. For the detail, refer to the relevant
announcement disclosed in the Securities Times, Hong Kong Commercial Daily and
http://www.cninfo.com.cn. on April 13, 2021 and May 08, 2021.
The 30th session of the Ninth Board of Directors and 2021 3rd Extraordinary General Meeting decided to
repurchase and cancel the 33,350 restricted A-shares which were already granted to but with the
restriction not yet relieved and held by 1 retired incentive object. For the detail, refer to the relevant
announcement disclosed in the Securities Times, Hong Kong Commercial Daily and
http://www.cninfo.com.cn. on June 15, 2021 and July 02, 2021.
2. Restricted A-Share Incentive Plan 2018 (Phase II)
The 23rd session of the Ninth Board of Directors held on December 04, 2020 and 2021 1st Extraordinary
General Meeting held on January 06, 2021 decided to start 2018 A-Share Restrictive Stock Incentive
Plan (Phase II), 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. For the detail, refer to the relevant announcement
disclosed in the Securities Times, Hong Kong Commercial Daily and http://www.cninfo.com.cn. on
January 16, 2021. This part of A-share restricted stock was all granted and registered for listing by
January 29, 2021. The specific implementation during the reporting period is summarized as follows:
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
The 26th session of the Ninth Board of Directors and 2021 2nd Extraordinary General Meeting decided
to repurchase and cancel the 150,000 restricted A-shares which were already granted to but with the
restriction not yet relieved and held by 1 retired incentive object. For the detail, refer to the relevant
announcement disclosed in the Securities Times, Hong Kong Commercial Daily and
http://www.cninfo.com.cn. on February 05, 2021 and February 25, 2021.
The 28th session of the Ninth Board of Directors and 2020 Annual General Meeting decided to
repurchase and cancel the 120,000 restricted A-shares which were already granted to but with the
restriction not yet relieved and held by 3 retired incentive objects. For the detail, refer to the relevant
announcement disclosed in the Securities Times, Hong Kong Commercial Daily and
http://www.cninfo.com.cn. on April 13, 2021 and May 08, 2021.
The 30th session of the Ninth Board of Directors and 2021 3rd Extraordinary General Meeting decided to
repurchase and cancel the 100,000 restricted A-shares which were already granted to but with the
restriction not yet relieved and held by 1 retired incentive object. For the detail, refer to the relevant
announcement disclosed in the Securities Times, Hong Kong Commercial Daily and
http://www.cninfo.com.cn. on June 15, 2021 and July 02, 2021.
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Section 5 Environment and Social Responsibility
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
Distribution Pollutant Total
Name of the of the major Number of Total
Way of of the Discharging Discharge discharge Over-dischar
Company or pollutants or discharging discharge
discharging discharging concentration Standards in volume ging
its Subsidiary specific outlets volume
outlets Force verified
pollutant
Shanghai At the port of Nickel ﹤
Nickel and Intermittent Nickel:0.1;
Watch effluent 0.03, 680 700
chromium and 1 chromium:0. None
Industry Co., treatment chromium ﹤ tons/year tons/year
effluent interruption 1
Ltd. equipment 0.01
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. In order to implement the
requirements of the Eco-Environment Bureau for energy saving and consumption reduction, the
Company has basically reached the standard for clean water after treatment of the wastewater from
electroplating. Therefore, the Company recycled part of the water and reduced the total annual
discharge by about 300 tons each year. In compliance with the Document of Shanghai Municipal Bureau
of Ecology and Environment, HU HUAN GUI (2020) No. 6, the primary pollutant wastewater should
comply with the general principle of “the water which should be classified must be classified; the water
which can be classified must be classified”. The Company started to entrust the municipal engineering
department to arrange and improve the Company’s existing wastewater pipelines commencing from
August, 2020, separate, collect and treat the domestic sewage and electroplating effluent.
Environmental impact assessment on construction projects and other environmental protection
administrative licensing
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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
pollution discharge verification organized by Yangpu District Environmental Protection Bureau of
Shanghai and has received the Pollutant Discharge Permit issued by the said authority at the end of
2019.
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 conducted supervision once every quarter.
The Company entrusted Shanghai Light Industry Environment Protection and Pressure Vessel
Monitoring General Station, a competent independent agent, to conduct the monitoring every half a year.
The Company was itself equipped with monitoring instruments and conducted self-monitoring at least 4
times every month.
Administrative penalties for environmental problems during the reporting period
Inapplicable
Other environment information necessary to be disclosed
None
Other information in connection with the environmental protection
The company has disclosed the concerned information on the Environmental Information Disclosure
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Platform of Enterprises and Institutions of Shanghai according to the requirements of the local
environmental protection authorities.
Website name: http://xxgk.eic.sh.cn.
II. Social Responsibilities
The Company has been actively practicing social responsibility for many years and has disclosed its
annual social responsibility report 14 times in a row. For the latest situation, please refer to the "2020
Social Responsibility Report" published on the "Securities Times", "Hong Kong Commercial Daily" and
www.cninfo.com.cn on March 10, 2021.
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Section 6 Significant Events
I. 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
II. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and its
Related Parties
Inapplicable
III. Outward guarantee against regulations
Inapplicable
IV. Engagement/Disengagement of CPAs
Has the financial report 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
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
VIII. Lawsuits
Inapplicable
IX. Penalty and Rectification
Inapplicable
X. Integrity of the Company, its Controlling Shareholder and Actual Controller
Inapplicable
XI. 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
Inapplicable
5. Deals with related financial companies and financial companies controlled by the Company
Deposit business
Maximum deposit
Deposit interest Opening balance Amount incurred Ending balance
Related parties Incidence relation limit per day (CNY
range (CNY 10,000) (CNY 10,000) (CNY 10,000)
10,000)
Finance company
AVIC Finance Co.,
with incidence 40,000.00 1.665% 28,353.23 158,713.46 15,526.69
Ltd.
relation
Loan business
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Inapplicable
Credit extension and other financial business
Inapplicable
Note: The Company’s 2019 1st Extraordinary General Meeting reviewed and approved the "Proposal on
Signing a Financial Service Agreement with AVIC Finance Co., Ltd.", stipulating that in 2019, 2020 and
2021, the Company shall deposit funds with AVIC Finance Co., Ltd. every day with maximum daily
deposit balance (including accrued interest) would not exceed CNY 400 million (including foreign
currency conversion in Renminbi); the recyclable comprehensive credit line is CNY 800 million (including
foreign currency conversion in Renminbi). For detail, please refer "Announcement of AVIC Finance Co.,
Ltd. Regarding Related Transactions with AVIC Finance Co., Ltd. 2018-031” disclosed by the Company
on December 27, 2018, During the reporting period, the daily maximum related deposit balance between
the Company and AVIC Finance did not exceed the above-mentioned limit, and there were no associated
loans, credit grants or other financial services.
6. Other Significant Related Transactions
The 27th session of the Ninth Board of Directors held on March 8, 2021 and 2020 Annual General
Meeting held on May 7, 2021 reviewed and approved the Proposal on Prediction of Regular Related
Transactions in 2021. For the detail, refer to the Announcement on the Resolution of the 27th Session of
the Ninth Board of Directors No. 2021-026, the Announcement on the Resolution of 2020 Annual General
Meeting No. 2021-045 and the Announcement on the Prediction of the Regular Related Transactions in
2021 No. 2021-029. 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
Description of the provisional
Date of disclosure Disclosure website
announcements
Announcement on the Resolution of the
27th Session of the Ninth Board of March 10, 2021 www.cninfo.com.cn
Directors, 2021-026
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Announcement of the Prediction of the
Regular Related Transactions in 2021, March 10, 2021 www.cninfo.com.cn
2021-029
Announcement on the Resolution of 2020
May 08, 2021 www.cninfo.com.cn
Annual General Meeting, 2021-045
XII. Important Contracts and Implementation
1. Custody, Contacting and Leases
(1) Custody
Inapplicable
(2) Contracting
Inapplicable
(3) Leases
Inapplicable
2. Significant Guarantees
In CNY 10,000
Outward guarantees Offered by the Company and its Subsidiaries (excluding guarantee to the subsidiaries)
Date of the
announceme Actual Counter Implement Guarantee
Names of Guarantee Date of Type of Collateral (if Guarantee
nt on the amount of guarante ation to related
Guarantees line occurrence guarantee any) period
guarantee guarantee e (if any) status party?
line
Inapplicable
Total amount of outward Total amount of outward
guarantee approved in the 0 guarantee actually incurred 0
report period (A1) in the report period (A2)
Total amount of outward Total ending balance of
guarantee already outward guarantee at the
0 0
approved at the end of the end of the report period
report period (A3) (A4)
Guarantee to the subsidiaries
Date of the Actual Counter Implement Guarantee
Names of Guarantee Date of Type of Collateral (if Guarantee
announceme amount of guarante ation to related
Guarantees line occurrence guarantee any) period
nt on the guarantee e (if any) status party?
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
guarantee
line
Guarantee
March 20, December
Harmony 30,000 10,000 with joint 1 year No No
2020 30, 2020
responsibility
Guarantee
March 15, October 01,
Harmony 20,000 5,000 with joint 1 year No No
2019 2020
responsibility
the Guarantee
March 20, April 21,
Technology 486 with joint 1 year No No
2020 2020
Co. responsibility
3,000
the Guarantee
March 20, June 23,
Technology 315 with joint 1 year No No
2020 2021
Co. responsibility
Total amount of guarantee
Total guarantee quota to
to the subsidiaries actually
the subsidiaries approved 0 315
incurred in the reporting
in the reporting period (B1)
period (B2)
Total guarantee quota to Total balance of actual
the subsidiaries approved guarantee to the
53,000 15,801
at the end of the reporting subsidiaries at the end of
period (B3) the reporting period (B4)
Guarantee among the subsidiaries
Date of the
announceme Actual Counter Implement Guarantee
Names of Guarantee Date of Type of Collateral (if Guarantee
nt on the amount of guarante ation to related
Guarantees line occurrence guarantee any) period
guarantee guarantee e (if any) status party?
line
Inapplicable
Total amount of guarantee
Total guarantee quota to
to the subsidiaries actually
the subsidiaries approved 0 0
incurred in the reporting
in the reporting period (C1)
period (C2)
Total guarantee quota to Total balance of actual
the subsidiaries approved guarantee to the
0 0
at the end of the reporting subsidiaries at the end of
period (C3) the reporting period (C4)
Total amount of guarantees (i.e. Total of the previous three major items)
Total amount of outward
Total guarantee quota to the
guarantee actually incurred
subsidiaries approved in the 0 315
in the report period
reporting period (A1+B1+C1)
(A2+B2+C2)
Total amount of guarantees already Total ending balance of
53,000 15,801
approved at the end of the report guarantees at the end of
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
period (A3+B3+C3) the report period
(A4+B4+C4)
Proportion of the actual guarantees in the Company’s
5.53%
net assets (namely A4+B4 + C4)
where
Amount of guarantees offered to the shareholders,
0
actual controller and its related parties (D)
Amount of guarantee for liabilities directly or indirectly
offered to the guarantees with the asset-liability ratio 0
exceeding 70% (E)
Guarantee with total amount exceeding 50% of the net
0
assets (F)
Total amount of the aforesaid three guarantees
0
(D+E+F)
For the guarantee contract not yet due, guarantee
responsibility incurred in the reporting period or there is
Inapplicable
evidence showing the description of the possible
related discharge duty (if any)
Note to the outward guarantee against the established
Inapplicable
procedures (if any)
Description of the guarantee with complex method
Inapplicable
3. Finance Management on Commission
Inapplicable
4. Important contracts for day-to-day operation
Inapplicable
5. Other Important Contracts
Inapplicable
XIII. Notes to Other Significant Events
About the Amendment of the Articles of Association
Authorized by 2021 1st Extraordinary General Meeting, the 26th session of the Ninth Board of Directors
held on February 4, 2021 reviewed and approved the "Proposal on the Amendment of the Articles of
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Association". For the detail, refer to the Announcement of the Resolution of the 26 Session of the Ninth
Board of Directors 2021-015 and 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.
XIV. Significant Events of the Company's Subsidiaries
Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Section 7 Change of the Shares and Particulars about Shareholders
I. Change of the Shares
1. Change of the Shares
In shares
Before the change Increase/decrease (+, -) involved in the change After the change
Shares
New Bonus converted
Quantity Proportion Others Sub-total Quantity Proportion
issuing shares from
reserve
I. Restricted shares 4,457,513 1.04% 7,660,000 0 0 -1,397,570 6,262,430 10,719,943 2.46%
1. Shares held by the state 0 0.00% 0 0 0 0 0 0 0.00%
2. State corporate shares 0 0.00% 0 0 0 0 0 0 0.00%
3. Other domestic shares 4,457,513 1.04% 7,660,000 0 0 -1,397,570 6,262,430 10,719,943 2.46%
Including: Domestic
0 0.00% 0 0 0 0 0 0 0.00%
corporate shares
Shares held by
4,457,513 1.04% 7,660,000 0 0 -1,397,570 6,262,430 10,719,943 2.46%
domestic natural persons
4. Foreign invested shares 0 0.00% 0 0 0 0 0 0 0.00%
Including: Foreign
0 0.00% 0 0 0 0 0 0 0.00%
corporate shares
Shares held by foreign
0 0.00% 0 0 0 0 0 0 0.00%
natural persons
II. Unrestricted shares 423,634,368 98.96% 0 0 0 1,196,211 1,196,211 424,830,579 97.54%
1. CNY ordinary shares 356,716,368 83.33% 0 0 0 1,196,211 1,196,211 357,912,579 82.17%
2. Foreign invested shares
66,918,000 15.63% 0 0 0 0 0 66,918,000 15.36%
listed in Mainland China
3. Foreign invested shares
0 0.00% 0 0 0 0 0 0 0.00%
listed abroad
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 428,091,881 100.00% 7,660,000 0 0 -201,359 7,458,641 435,550,522 100.00%
Cause of the change of shares
During the reporting period, the Company’s 2018 A-share Restricted Stock Incentive Plan (Phase II) was
completed in granting and registered for listing on January 29, 2021. The number of shares granted was
7,660,000. After the grant, the Company’s total share capital increased from 428,091,881 shares to
435,751,881 shares.
As in the Company's 2018 A-share Restricted Stock Incentive Plan (Phase I) and 2018 A-share Restricted
Stock Incentive Plan (Phase II) one original incentive object resigned and another one passed away, they
were no longer eligible for incentives. According to the conditions of the incentive plan, the Company has
repurchased and canceled the 201,359 restricted A-shares that it had granted but had not yet lifted the
restriction on sales in accordance with the provisions of the incentive plan. After completion of the
repurchase and cancellation, the Company's total shares changed from 435,751,881 shares to
435,550,522 shares.
Approval of the Change of the Shares
The Company held 2021 1st Extraordinary General Meeting on January 6, 2021, authorizing the
Company's Board of Directors to handle matters related to the 2018 A-share Restricted Stock Incentive
Plan (Phase II).
The Company's 2021 2nd Extraordinary General Meeting held on February 24, 2021 authorized the
Board of Directors of the Company to repurchase and cancel 201,359 A-share restricted shares with the
restriction not yet relieved that had been granted to and held by the former incentive objects one of whom
had resigned and another of whom had passed away.
Transfer of the Shares Changed
Verified by China Securities Depository & Clearing Corporation Limited Shenzhen Branch, as of January
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
29, 2021, the Company's 2018 A-share Restricted Stock Incentive Plan (Phase II) had been completed
and the number of shares granted was 7,660,000.
Verified by China Securities Depository & Clearing Corporation Limited Shenzhen Branch, as of April 23,
2021, the Company completed repurchase and cancellation of 201,359 A-share restricted stock.
Progress of implementation of the stock repurchase
The Company’s 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 series of progress announcements in accordance with relevant regulations. For the
detail, please refer to the relevant announcements disclosed on the Securities Times, Hong Kong
Commercial Daily and www.cninfo.com. 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 transaction cost
exclusive).
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
Net return on equity, weighted average Earnings per share
(%) Basic earning per share (CNY/share) Diluted earning per share (CNY/share)
June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
8.09% 2.91% 0.5421 0.1775 0.5421 0.1775
Other information the Company considers necessary or required by the securities regulatory authority to
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
be disclosed.
Inapplicable
2. Change of the Restricted Shares
In shares
Number of
Number of restricted
restricted shares Number of restricted Number of restricted
Names of the shares at the end Cause of Date of relieving the
at the beginning shares relieved in the shares increased in
Shareholders of the reporting restriction restriction
of the reporting reporting period the reporting period
period
period
To be unlocked
subject to the
Locked shares
conditions of the
for senior
locked shares for
executives and
Pan Bo 117,500 26,640 156,640 247,500 senior executives
restricted shares
and the measures
as the granted
for the Company’s
locked shares
equity incentive
management
To be unlocked
subject to the
Locked shares
conditions of the
for senior
locked shares for
executives and
Lu Wanjun 117,500 26,640 156,640 247,500 senior executives
restricted shares
and the measures
as the granted
for the Company’s
locked shares
equity incentive
management
To be unlocked
subject to the
Locked shares
conditions of the
for senior
locked shares for
executives and
Liu Xiaoming 117,500 26,640 156,640 247,500 senior executives
restricted shares
and the measures
as the granted
for the Company’s
locked shares
equity incentive
management
Locked shares To be unlocked
for senior subject to the
Li Ming 117,530 26,640 156,640 247,530 executives and conditions of the
restricted shares locked shares for
as the granted senior executives
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
locked shares and the measures
for the Company’s
equity incentive
management
To be unlocked
subject to the
Locked shares
conditions of the
for senior
locked shares for
executives and
Chen Zhuo 118,250 26,640 156,640 248,250 senior executives
restricted shares
and the measures
as the granted
for the Company’s
locked shares
equity incentive
management
To be unlocked
subject to the
Locked shares
conditions of the
for senior
locked shares for
executives and
Tang Haiyuan 60,000 19,980 154,980 195,000 senior executives
restricted shares
and the measures
as the granted
for the Company’s
locked shares
equity incentive
management
To be unlocked
Locked shares subject to the
Huang Yongfeng
160,000 33,300 53,300 180,000 for senior conditions of the
(Retired)
executives locked shares for
senior executives
To be unlocked
Locked shares subject to the
Chen Libin
160,000 33,300 233,300 360,000 for senior conditions of the
(retired)
executives locked shares for
senior executives
To be unlocked
Locked shares subject to the
Xu Chuangyue
50,000 183,350 150,000 16,650 for senior conditions of the
(retired)
executives locked shares for
senior executives
To be unlocked
Locked shares subject to the
Lu Bingqiang
72,233 0 0 72,233 for senior conditions of the
(retired)
executives locked shares for
senior executives
Other persons Restricted To be unlocked
3,367,000 1,139,220 6,430,000 8,657,780
eligible for the shares as the subject to the
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
incentive of A-share granted locked measures for the
restrictive stock shares Company’s equity
incentive
management
Total 4,457,513 1,542,350 7,804,780 10,719,943 -- --
II. Issuing and Listing
Description of Quantity
Issuing price
the stock and Quantity approved for Expiry date of Disclosure
Date of issuing (or interest Date of listing Date of disclosure
its derivative issued being listed for trading index
rate)
securities trading
Type of stock
January 15, January 29, http://www.cni January 28,
A-shares 7.6 7,660,000 7,660,000
2021 2021 nfo.com.cn/ 2021
Note to issuing of securities during the reporting period
The 23rd session of the Ninth Board of Directors held on December 04, 2020 and 2021 1st Extraordinary
General Meeting held on January 06, 2021 decided to start 2018 A-Share Restrictive Stock Incentive Plan
(Phase II), 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. The grant date of this part of the A-share restricted stock is January 15,
2021, and the grant was completed and registered for listing on January 29, 2021.For the detail, please
refer to the "Announcement on Completion of the Grant Involved in the 2018 Restricted A-Share Incentive
Plan (Phase II) 2021-011” disclosed in the Securities Times, Hong Kong Commercial Daily and
http://www.cninfo.com.cn.
III. Number of Shareholders and Shareholding
In shares
Total preference shareholders with the
Total common shareholders at voting power recovered at the end of
27,860 0
the end of the reporting period the reporting 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 Increase/decrease Number of Number of Pledging, marking or freezing
Names of the Nature of the Shareholding
common in the reporting the the Status of the
Shareholders shareholder proportion Quantity
shares held period restricted unrestricted shares
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
at the end of common common
the reporting shares shares held
period held
AVIC
International State corporate 37.42% 162,977,327 0 0 162,977,327
Holding Limited
Construction
Bank of China -
Domestic
Penghua Huizhi
non-state-owned 3.02% 13,145,394 13,145,394 0 13,145,394
Optimized Hybrid
legal person
Securities
Investment Fund
Guoxin
Investment Co., State corporate 1.78% 7,739,898 7,739,898 0 7,739,898
Ltd.
ICBC - Fuguo
Tianhui Selected
Domestic
Growth Hybrid
non-state-owned 1.38% 6,000,000 5,663,900 0 6,000,000
Securities
legal person
Investment Fund
(LOF)
Construction
Bank of China -
Domestic
Penghua High
non-state-owned 1.30% 5,646,306 395,400 0 5,646,306
Quality Growth
legal person
Hybrid Securities
Investment Fund
GF Fund－
Guoxin
Investment Co.,
Ltd. －GF Fund Domestic
－GUO XIN No. non-state-owned 1.21% 5,269,001 4,040,200 0 5,269,001
6（QDII）Single legal person
Asset
Management
Plan"
Construction
Bank of China -
Penghua Value Domestic
Superiority non-state-owned 1.14% 4,947,442 -2,524,993 0 4,947,442
Hybrid Securities legal person
Investment Fund
(LOF)
Industrial and Domestic 0.76% 3,302,438 3,302,438 0 3,302,438
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Commercial non-state-owned
Bank of China legal person
LTD - Penghua
Innovation
Growth Hybrid
Securities
Investment Fund
Construction
Bank of China -
Domestic
Penghua
non-state-owned 0.64% 2,782,634 459,900 0 2,782,634
Selected Growth
legal person
Hybrid Securities
Investment Fund
Domestic natural
Chi Dexuan 0.38% 1,672,900 -30,600 0 1,672,900
person
About the fact that a strategic investor
or ordinary corporate became one of
the top ten common shareholders due Inapplicable
to placement of new shares (if any)
(Refer to Note 3)
Explanation on associated relationship
or consistent action of the above Inapplicable
shareholders
Among the above shareholders, AVIC International Holding Limited authorized representatives to exercise
Note to the aforesaid shareholders voting rights on their behalf in the Company’s 2021 1st Extraordinary General Meeting, 2021 2nd
involving entrusting/being entrusted Extraordinary General Meeting and 2020 Annual General Meeting with the number of representative shares
with voting power and the waiver of being 162,977,327 shares. For the detail of the result of the aforesaid voting, refer to the relevant
voting power announcement disclosed in the Securities Times, Hong Kong Commercial Daily and
http://www.cninfo.com.cn.
There is a special repurchase account
among the top 10 shareholders (if any)
The Company has a special securities account for the repurchase of FIYTA Precision Technology Co., Ltd.
(see Note 11) Special note to the
As of the end of the reporting period, the account held 8,994,086 B-shares as repurchased, which was not
designated repurchase account in top
presented in the top 10 shareholder register.
10 shareholders (if any) (Refer to Note
11)
Shares held by top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end of the reporting Share type
Names of the Shareholders
period Share type Quantity
CNY ordinary
AVIC International Holding Limited 162,977,327 162,977,327
shares
Construction Bank of China - Penghua
CNY ordinary
Huizhi Optimized Hybrid Securities 13,145,394 13,145,394
shares
Investment Fund
Guoxin Investment Co., Ltd. 7,739,898 CNY ordinary 7,739,898
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
shares
ICBC - Fuguo Tianhui Selected
CNY ordinary
Growth Hybrid Securities Investment 6,000,000 6,000,000
shares
Fund (LOF)
Construction Bank of China - Penghua
CNY ordinary
High Quality Growth Hybrid Securities 5,646,306 5,646,306
shares
Investment Fund
GF Fund－Guoxin Investment Co.,
Ltd. －GF Fund－GUO XIN No. 6 CNY ordinary
5,269,001 5,269,001
（QDII）Single Asset Management shares
Plan"
Construction Bank of China - Penghua
CNY ordinary
Value Superiority Hybrid Securities 4,947,442 4,947,442
shares
Investment Fund (LOF)
Industrial and Commercial Bank of
China LTD - Penghua Innovation CNY ordinary
3,302,438 3,302,438
Growth Hybrid Securities Investment shares
Fund
Construction Bank of China - Penghua
CNY ordinary
Selected Growth Hybrid Securities 2,782,634 2,782,634
shares
Investment Fund
CNY ordinary
Chi Dexuan 1,672,900 1,672,900
shares
Note to the associated relationship
or consistent action among the top 10
shareholders of non-restricted
common shares and that between the Inapplicable
top 10 shareholders of non-restricted
common shares and top 10 common
shareholders.
Note to the top 10 common
shareholders involved in margin Among the above shareholders, Chi Dexuan purchased 1,672,900 shares through the customer credit
financing & securities lending (if any) transaction guarantee securities account of Huaxin Securities Co., Ltd.
(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
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
IV. Change in Shares Held by Directors, Supervisors and Senior Executives
Number of
Shareholdin Number of
shares held Shareholdin Number of Number of
g restricted
at the g increased shares held restricted Number of restricted
decreased shares granted
Office beginning of in the at end of the shares granted shares granted at the
Name Title in the at the
Status the reporting reporting during the end of the reporting
reporting beginning of
reporting period period reporting period (shares)
period the reporting
period (shares) (shares) period (shares)
(shares) period (shares)
(shares)
Zhang Chairman of
In office 0 0 0 0 0 0 0
Xuhua the Board
Zhang
Director Retired 0 0 0 0 0 0 0
Zhibiao
Xiao Yi Director In office 0 0 0 0 0 0 0
Xiao
Director In office 0 0 0 0 0 0 0
Zhanglin
Li Peiyin Director In office 0 0 0 0 0 0 0
Managing
Pan Bo In office 130,000 150,000 0 280,000 80,000 150,000 230,000
Director
Wang Independen
In office 0 0 0 0 0 0 0
Jianxin t Director
Zhong Independen
In office 0 0 0 0 0 0 0
Hongming t Director
Tang Independen
In office 0 0 0 0 0 0 0
Xiaofei t Director
Chairman of
Zheng the
In office 0 0 0 0 0 0 0
Qiyuan Supervisory
Committee
Cao Zhen Supervisor In office 0 0 0 0 0 0 0
Sheng Qing Supervisor In office 0 0 0 0 0 0 0
Lu Wanjun Deputy GM In office 130,000 150,000 0 280,000 80,000 150,000 230,000
Liu
Deputy GM In office 130,000 150,000 0 280,000 80,000 150,000 230,000
Xiaoming
Li Ming Deputy GM In office 130,040 150,000 0 280,040 80,000 150,000 230,000
Chief
Accountant
Chen Zhuo In office 131,000 150,000 0 281,000 80,000 150,000 230,000
& Secretary
of the Board
Tang
Deputy GM In office 60,000 150,000 0 210,000 60,000 150,000 210,000
Haiyuan
Huang Chairman of
Retired 180,000 0 0 180,000 100,000 0 100,000
Yongfeng the Board
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Wang
Director Retired 0 0 0 0 0 0 0
Mingchuan
Fu Debin Director Retired 0 0 0 0 0 0 0
Wang Bo Director Retired 0 0 0 0 0 0 0
Chairman of
Wang the
Retired 0 0 0 0 0 0 0
Baoying Supervisory
Committee
Fang
Supervisor Retired 0 0 0 0 0 0 0
Jiasheng
Managing
Chen Libin Retired 180,000 180,000 0 360,000 100,000 180,000 280,000
Director
Xu
Chuangyue Deputy GM Retired 50,000 150,000 183,350 16,650 50,000 150,000 0
(Note)
Total -- -- 1,121,040 1,230,000 183,350 2,167,690 710,000 1,230,000 1,740,000
Note: The Company has completed the repurchase and cancellation of 183,350 A-share restricted stocks
held by Xu Chuangyue, the original incentive object who resigned on April 23, 2021, and the remaining
16,650 shares held by him have been unlocked A-shares.
V. Change of the Controlling Shareholder or Actual Controller
Change of the controlling shareholder in the reporting period
Inapplicable
Change of the actual controller in the reporting period
Inapplicable
Section 8 About the Preferred Shares
Inapplicable
Section 9 About Bonds
Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 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 Precision Technology Co., Ltd.
In CNY
Items June 30, 2021 December 31, 2020
Current assets:
Monetary capital 234,840,156.69 353,057,285.71
Settlement reserve
Inter-bank lending
Transactional financial assets
Derivative financial assets
Notes receivable 54,521,848.62 48,192,442.15
Accounts receivable 493,350,677.26 475,598,684.88
Financing with accounts receivable
Advance payment 17,014,006.71 16,612,773.76
Receivable premium
Reinsurance accounts receivable
Reserve for reinsurance contract
receivable
Other receivables 61,004,359.97 52,902,779.63
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for sale
Inventories 2,014,209,378.86 1,931,780,185.85
Contract assets
Held-for-sale assets
Non-current assets due within a year
Other current assets 47,287,225.10 75,935,141.76
Total current assets 2,922,227,653.21 2,954,079,293.74
Non-current assets:
Loan issuing and advance in cash
Equity investment
Other equity investment
Long term accounts receivable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Long-term equity investments 53,029,994.16 51,400,665.92
Investment in other equity instruments 85,000.00 85,000.00
Other non-current financial assets
Investment-oriented real estate 390,386,341.42 398,086,447.78
Fixed assets 350,973,834.39 352,734,280.76
Construction-in-progress
Productive biological asset
Oil and Gas Assets
Use right assets 145,971,912.86
Intangible assets 34,770,175.43 37,859,316.51
Development expenses
Goodwill
Long term expenses to be apportioned 147,942,069.65 130,017,587.99
Deferred income tax asset 74,528,698.05 80,913,800.35
Other non-current assets 5,499,554.07 13,536,307.13
Total non-current assets 1,203,187,580.03 1,064,633,406.44
Total assets 4,125,415,233.24 4,018,712,700.18
Current liabilities:
Short term borrowings 460,023,601.43 542,673,278.09
Borrowings from central bank
Loans from other banks
Transactional financial liabilities
Derivative financial liabilities
Notes payable 2,181,360.00 3,581,360.00
Accounts payable 242,658,707.35 301,211,515.39
Advance receipt 8,932,926.97 9,991,850.67
Contract liabilities 18,658,899.34 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 84,206,571.74 132,853,462.20
Taxes payable 65,945,245.27 68,925,271.90
Other payables 224,725,778.18 128,577,597.94
Including: interest payable
Dividends payable 5,210,370.29 1,639,513.77
Service charge and commission
payable
Payable reinsurance
Held-for-sale liabilities
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Non-current liabilities due within a year 95,744,266.63 370,030.00
Other current liabilities 2,374,396.18 2,299,755.09
Total current liabilities 1,205,451,753.09 1,208,697,517.77
Non-current liabilities:
Reserve for insurance contract
Long-term borrowings 3,702,300.00 4,070,330.00
Bonds payable
Including: preferred shares
Perpetual bond
Lease liabilities 52,886,029.26
Long-term accounts payable
Long term payroll payable to the
employees
Estimated liabilities
Deferred income 2,377,718.35 2,916,346.43
Deferred income tax liability 3,837,833.16 3,067,834.55
Other non-current liabilities
Total non-current liabilities 62,803,880.77 10,054,510.98
Total liabilities 1,268,255,633.86 1,218,752,028.75
Owner’s equity:
Capital stock 435,550,522.00 428,091,881.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital reserve 1,078,658,797.94 1,021,490,387.78
Less: shares in stock 117,872,472.46 61,633,530.48
Other comprehensive income -5,501,083.75 976,871.41
Special reserve 295,691.96
Surplus reserve 246,531,866.87 246,531,866.87
Reserve against general risks
Retained earnings 1,219,496,276.82 1,164,490,911.51
Total owners’ equity attributable to the
2,857,159,599.38 2,799,948,388.09
parent company
Minority shareholders’ equity 12,283.34
Total owner’s equity 2,857,159,599.38 2,799,960,671.43
Total liabilities and owners’ equity 4,125,415,233.24 4,018,712,700.18
Legal representative: Zhang Xuhua Chief Financial Officer: Chen Zhuo Person in charge of the Accounting
Department: Tian Hui
2. Balance Sheet (Parent Company)
In CNY
Items June 30, 2021 December 31, 2020
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Current assets:
Monetary capital 177,611,362.38 292,055,169.74
Transactional financial assets
Derivative financial assets
Notes receivable
Accounts receivable 3,108,258.93 1,464,798.79
Financing with accounts receivable
Advance payment
Other receivables 578,424,821.93 621,512,680.69
Including: Interest receivable
Dividends receivable
Inventories
Contract assets
Held-for-sale assets
Non-current assets due within a year
Other current assets 12,678,135.67 11,655,617.82
Total current assets 771,822,578.91 926,688,267.04
Non-current assets:
Equity investment
Other equity investment
Long term accounts receivable
Long-term equity investments 1,535,486,644.71 1,529,415,188.28
Investment in other equity instruments 85,000.00 85,000.00
Other non-current financial assets
Investment-oriented real estate 316,968,024.06 323,296,494.84
Fixed assets 228,543,657.25 224,709,747.39
Construction-in-progress
Productive biological asset
Oil and Gas Assets
Use right assets
Intangible assets 25,149,757.70 27,347,950.13
Development expenses
Goodwill
Long term expenses to be apportioned 10,238,644.03 11,980,697.97
Deferred income tax asset 1,549,679.94 1,380,180.94
Other non-current assets 1,169,264.97 473,312.35
Total non-current assets 2,119,190,672.66 2,118,688,571.90
Total assets 2,891,013,251.57 3,045,376,838.94
Current liabilities:
Short term borrowings 450,413,888.89 400,425,930.05
Transactional financial liabilities
Derivative financial liabilities
Notes payable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Accounts payable 1,232,967.42 1,481,135.49
Advance receipt 8,932,926.97 9,991,850.67
Contract liabilities 37,735.85
Payroll payable to the employees 19,101,278.54 25,256,531.70
Taxes payable 7,810,440.56 2,778,265.84
Other payables 192,044,409.36 240,824,305.37
Including: interest payable
Dividends payable 5,210,370.29 1,639,513.77
Held-for-sale liabilities
Non-current liabilities due within a year
Other current liabilities 2,264.15
Total current liabilities 679,535,911.74 680,798,019.12
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 681,913,630.09 683,175,737.47
Owner’s equity:
Capital stock 435,550,522.00 428,091,881.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital reserve 1,083,200,014.48 1,027,145,928.88
Less: shares in stock 117,872,472.46 61,633,530.48
Other comprehensive income
Special reserve
Surplus Reserve 246,531,866.87 246,531,866.87
Retained earnings 561,689,690.59 722,064,955.20
Total owner’s equity 2,209,099,621.48 2,362,201,101.47
Total liabilities and owners’ equity 2,891,013,251.57 3,045,376,838.94
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Legal representative: Zhang Xuhua Chief Financial Officer: Chen Zhuo Person in charge of the Accounting
Department: Tian Hui
3. Consolidated Statement of Profit
In CNY
Items Semi-annual of 2021 Semi-annual of 2020
I. Turnover 2,777,519,521.34 1,581,834,715.03
Including: operating income 2,777,519,521.34 1,581,834,715.03
Interest income
Earned insurance premium
Service charge and commission
income
II. Total operating costs 2,484,774,500.03 1,501,108,535.92
Including: Operating costs 1,738,149,481.70 977,435,676.87
Interest payment
Service charge and commission
payment
Surrender Value
Compensation expenses, net
Provision of reserve for insurance
liabilities, net
Payment of policy dividend
Reinsurance expenses
Taxes and surcharges 16,455,961.46 7,270,983.69
Sales costs 561,630,052.63 380,928,312.51
Administrative expenses 121,391,665.85 98,240,348.73
R & D expenditures 26,370,064.68 20,704,270.76
Financial expenses 20,777,273.71 16,528,943.36
Where: Interest cost 14,778,321.69 13,485,670.67
Interest income 2,153,626.51 2,482,721.82
Plus: Other income 11,662,934.28 10,154,015.67
Investment income (loss is stated
1,629,328.24 2,160,911.92
with “-”)
Including: return on investment in
1,629,328.24 2,160,911.92
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
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
(loss is stated with “-”)
Loss from impairment of credit (loss
-2,035,236.95 -2,467,361.35
is stated with “-”)
Loss from impairment of assets (loss
-1,226,362.68
is stated with “-”)
Income from disposal of assets (loss
-73,807.46 -200,140.17
is stated with “-“)
III. Operating Profit (loss is stated with “-“) 302,701,876.74 90,373,605.18
Plus: Non-operating income 271,968.27 1,391,859.42
Less: Non-operating expenses 859,659.12 118,646.41
IV. Total profit (total loss is stated with “-”) 302,114,185.89 91,646,818.19
Less: Income tax expense 68,549,402.06 13,907,911.89
V. Net Profit (net loss is stated with “-“) 233,564,783.83 77,738,906.30
(I) Classification based on operation
sustainability
1. Net Profit from sustainable operation
233,564,783.83 77,738,906.30
(net loss is stated with “-”)
2. Net Profit from termination of
operation (net loss is stated with “-”)
(II) Classification by ownership
1. Net profit attributable to the parent
233,544,726.55 77,738,906.30
company’s owner
2. Minority shareholders’ gain/loss 20,057.28
VI. Net of other comprehensive income after
-6,510,295.78 4,329,973.83
tax
Net of other comprehensive income after
tax attributable to the parent company’s -6,477,955.16 4,329,877.58
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
-6,477,955.16 4,329,877.58
shall be re-classified into gain and loss
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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
-6,477,955.16 4,329,877.58
currency statements
7. Others
Net amount of other comprehensive
income after tax attributable to minority -32,340.62 96.25
shareholders
VII. Total comprehensive income 227,054,488.05 82,068,880.13
Total comprehensive income attributable
227,066,771.39 82,068,783.88
to the parent company’s owner
Total comprehensive income attributable
-12,283.34 96.25
to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.5421 0.1775
(II) Diluted earnings per share 0.5421 0.1775
Legal representative: Zhang Xuhua Chief Financial Officer: Chen Zhuo Person in charge of the Accounting
Department: Tian Hui
4. Statement of Profit, Parent Company
In CNY
Items Semi-annual of 2021 Semi-annual of 2020
I. Operating revenue 86,734,149.72 57,313,218.41
Less: Operating cost 17,699,646.51 17,626,390.24
Taxes and surcharges 3,878,641.68 1,616,108.15
Sales costs 1,502,340.61 597,618.02
Administrative expenses 35,277,870.48 31,406,670.97
R & D expenditures 10,669,576.37 7,989,092.54
Financial expenses 2,473,687.51 3,458,375.39
Where: Interest cost 4,352,044.36 5,364,370.20
Interest income 1,885,611.98 2,363,907.44
Plus: Other income 1,283,696.46 4,334,756.32
Investment income (loss is stated
1,629,328.24 2,160,911.92
with “-”)
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Including: return on investment in
1,629,328.24 2,160,911.92
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
-227,114.99 -100,902.52
(loss is stated with “-”)
Loss from impairment of assets
(loss is stated with “-”)
Income from disposal of assets
-32,709.96 -15,641.58
(loss is stated with “-“)
II. Operating Profit (loss is stated with “-“) 17,885,586.31 998,087.24
Plus: Non-operating income 68,243.42 33,077.28
Less: Non-operating expenses
III. Total profit (total loss is stated with “-“) 17,953,829.73 1,031,164.52
Less: Income tax expense 4,109,028.61 -250,708.51
IV. Net Profit (net loss is stated with “-“) 13,844,801.12 1,281,873.03
(I) Net Profit from sustainable operation
13,844,801.12 1,281,873.03
(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
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
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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 13,844,801.12 1,281,873.03
VII. Earnings per share:
(I)Basic earnings per share
(II)Diluted earnings per share
Legal representative: Zhang Xuhua Chief Financial Officer: Chen Zhuo Person in charge of the Accounting
Department: Tian Hui
5. Consolidated Cash Flow Statement
In CNY
Items Semi-annual of 2021 Semi-annual of 2020
I. Cash flows arising from operating
activities:
Cash received from sales of goods and
3,032,558,393.33 1,704,132,389.05
supply of services
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
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
business
Net cash received from securities
trading on commission
Rebated taxes received 332,318.54 1,408,520.48
Other operation activity related cash
38,766,804.92 31,287,429.73
receipts
Subtotal of cash flow in from operating
3,071,657,516.79 1,736,828,339.26
activity
Cash paid for purchase of goods and
2,066,444,330.76 1,124,364,970.39
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 393,019,916.39 280,396,366.01
Taxes paid 162,959,165.63 62,495,543.38
Other business activity related cash
244,079,540.08 165,926,224.21
payments
Subtotal of cash flow out from operating
2,866,502,952.86 1,633,183,103.99
activity
Net cash flows arising from operating
205,154,563.93 103,645,235.27
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 40,157.94 19,552.47
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
40,157.94 19,552.47
activity
Cash paid for purchase/construction of
80,158,290.74 53,912,380.03
fixed assets, Intangible assets and other
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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
80,158,290.74 53,912,380.03
activity
Cash flow arising from investment activities: -80,118,132.80 -53,892,827.56
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 662,716,163.39 572,430,000.00
Other fund-raising related cash receipts
Subtotal of cash flow in from fund raising
720,932,163.39 572,430,000.00
activity
Cash paid for debt repayment 726,557,058.70 467,250,228.75
Cash paid for dividend/profit
182,851,224.13 98,229,142.76
distribution or repayment of interest
Including: Dividend and profit paid by
the subsidiaries to minority shareholders
Cash paid for other financing activities 54,063,872.68 26,825,873.78
Sub-total cash flow paid for financing
963,472,155.51 592,305,245.29
activities
Net cash flow arising from fund-raising
-242,539,992.12 -19,875,245.29
activities
IV. Change of exchange rate influencing the
-713,568.03 -64,085.83
cash and cash equivalent
V. Net increase of cash and cash
-118,217,129.02 29,813,076.59
equivalents
Plus: Opening balance of cash and
353,057,285.71 315,093,565.09
cash equivalents
VI. Ending balance of cash and cash
234,840,156.69 344,906,641.68
equivalents
Legal representative: Zhang Xuhua Chief Financial Officer: Chen Zhuo Person in charge of the Accounting
Department: Tian Hui
6. Cash Flow Statement, Parent Company
In CNY
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Items Semi-annual of 2021 Semi-annual of 2020
I. Net cash flows arising from operating
activities
Cash received from sales of goods and
85,465,489.50 84,447,213.29
supply of services
Rebated taxes received
Other operation activity related cash
2,790,729,542.97 1,761,219,003.00
receipts
Subtotal of cash flow in from operating
2,876,195,032.47 1,845,666,216.29
activity
Cash paid for purchase of goods and
reception of labor services
Cash paid to and for staff 38,235,882.75 28,476,180.31
Taxes paid 7,088,803.03 5,608,474.08
Other business activity related cash
2,851,858,748.03 1,646,751,070.92
payments
Subtotal of cash flow out from operating
2,897,183,433.81 1,680,835,725.31
activity
Net cash flows arising from operating
-20,988,401.34 164,830,490.98
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 3,200.00 550.00
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
3,200.00 550.00
activity
Cash paid for purchase/construction of
fixed assets, Intangible assets and other 14,452,808.81 15,073,283.59
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
14,452,808.81 15,073,283.59
activity
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Cash flow arising from investment activities: -14,449,608.81 -15,072,733.59
III. Cash flow arising from fund-raising
activities:
Cash received from absorbing
58,216,000.00
investment
Cash received from loans 650,000,000.00 450,000,000.00
Other fund-raising related cash receipts
Subtotal of cash flow in from fund raising
708,216,000.00 450,000,000.00
activity
Cash paid for debt repayment 600,000,000.00 450,000,000.00
Cash paid for dividend/profit
180,890,301.90 97,351,309.71
distribution or repayment of interest
Cash paid for other financing activities 6,106,577.91 26,693,235.96
Sub-total cash flow paid for financing
786,996,879.81 574,044,545.67
activities
Net cash flow arising from fund-raising
-78,780,879.81 -124,044,545.67
activities
IV. Change of exchange rate influencing the
-224,917.40 26,311.50
cash and cash equivalent
V. Net increase of cash and cash
-114,443,807.36 25,739,523.22
equivalents
Plus: Opening balance of cash and
292,055,169.74 269,098,346.02
cash equivalents
VI. Ending balance of cash and cash
177,611,362.38 294,837,869.24
equivalents
Legal representative: Zhang Xuhua 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
Semi-annual of 2021
Owners’ equity attributable to the parent company
Other equity
Minority
instruments Other Provisi Retaine Total
Items Less: Surplus shareh
Capita Prefer Capital compre Special on for d Sub-tot owner’
Perpe shares Reserv Others olders’
l stock red Other reserve hensive reserve general earning al s equity
tual in stock e equity
share s income risks s
bond
s
I. Ending balance 428,0 1,021,4 246,53 1,164,4 2,799,9 2,799,9
61,633, 976,87 12,283.
of the previous 91,88 90,387. 1,866.8 90,911. 48,388. 60,671.
530.48 1.41 34
year 1.00 78 7 51 09 43
Plus: Change -4,319, -4,319, -4,319,
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
in accounting 295.51 295.51 295.51
policy
Correction of
previous errors
Business
combination
under the
common control
Others
II. Opening 428,0 1,021,4 246,53 1,160,1 2,795,6 2,795,6
61,633, 976,87 12,283.
balance of the 91,88 90,387. 1,866.8 71,616. 29,092. 41,375.
530.48 1.41 34
reporting year 1.00 78 7 00 58 92
III.
Decrease/increas 7,458,
57,168, 56,238, -6,477, 295,69 59,324, 61,530, -12,283 61,518,
e of the report 641.0
410.16 941.98 955.16 1.96 660.82 506.80 .34 223.46
year (decrease is 0
stated with “-“)
(I) Total 233,54 227,06 227,05
-6,477, -12,283
comprehensive 4,726.5 6,771.3 4,488.0
955.16 .34
income 5 9 5
(II) Owners’
7,458,
input and 57,168, 56,238, 8,388,1 8,388,1
641.0
decrease of 410.16 941.98 09.18 09.18
0
capital
1 Common
7,458,
shares 49,411, 61,668, -4,797, -4,797,
641.0
contributed by the 923.00 402.49 838.49 838.49
0
owner
2 Capital
contributed by
other equity
instruments
holders
3 Amount of
payment for 7,759,8 -5,429, 13,189, 13,189,
shares counted to 64.16 460.51 324.67 324.67
owners’ equity
-3,377. -3,377. -3,377.
4 Others
00 00 00
-174,22 -174,22 -174,22
(III) Profit
0,065.7 0,065.7 0,065.7
Distribution
3 3 3
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
1 Provision of
surplus reserve
2 Provision for
general risks
3 Distributions to -174,22 -174,22 -174,22
the owners (or 0,065.7 0,065.7 0,065.7
shareholders) 3 3 3
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
income
carried-over to
the retained
earnings
6 Others
(V) Special 295,69 295,69 295,69
reserve 1.96 1.96 1.96
1 Provision in the 491,60 491,60 491,60
reporting period 5.68 5.68 5.68
2 Applied in the -195,91 -195,91 -195,91
reporting period 3.72 3.72 3.72
(VI) Others
IV. Ending 435,5 1,078,6 117,87 -5,501, 295,69 246,53 1,219,4 2,857,1 2,857,1
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
balance of the 50,52 58,797. 2,472.4 083.75 1.96 1,866.8 96,276. 59,599. 59,599.
reporting period 2.00 94 6 7 82 38 38
Amount in the previous period
In CNY
Semi-annual of 2020
Owners’ equity attributable to the parent company
Other equity
Minority
instruments Other Provisi Retaine Total
Items Less: Surplus sharehol
Capita Prefe Capital compre Special on for d Sub-tot owner’s
Perp shares Reserv Others ders’
l stock rred Other reserve hensive reserve general earning al equity
etual in stock e equity
share s income risks s
bond
s
I. Ending balance 442,9 1,081,2 235,70 966,84 2,654,5
71,267, -940,20 2,654,53
of the previous 68,88 30,215. 1,180.1 0,818.4 33,766. 5,910.84
118.78 9.09 9,677.83
year 1.00 32 4 0 99
Plus:
Change in
accounting policy
Correction of
previous errors
Business
combination
under the
common control
Others
II. Opening 442,9 1,081,2 235,70 966,84 2,654,5
71,267, -940,20 2,654,53
balance of the 68,88 30,215. 1,180.1 0,818.4 33,766. 5,910.84
118.78 9.09 9,677.83
reporting year 1.00 32 4 0 99
III.
Decrease/increa -14,79
-61,845 -53,819 4,329,8 -7,895, -26,388 -26,388,
se of the report 7,000. 96.25
,192.53 ,130.10 77.58 469.90 ,654.75 558.50
year (decrease is 00
stated with “-“)
(I) Total
4,329,8 77,738, 82,068, 82,068,8
comprehensive 96.25
77.58 906.30 783.88 80.13
income
(II) Owners’ input -14,79
-61,845 -53,819 -22,823 -22,823,
and decrease of 7,000.
,192.53 ,130.10 ,062.43 062.43
capital 00
1 Common -14,79 -64,385 -53,819 -25,363 -25,363,
shares 7,000. ,948.25 ,130.10 ,818.15 818.15
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
contributed by 00
the owner
2 Capital
contributed by
other equity
instruments
holders
3 Amount of
payment for 2,784,0 2,784,0 2,784,09
shares counted 96.62 96.62 6.62
to owners’ equity
-243,34 -243,34 -243,340
4 Others
0.90 0.90 .90
(III) Profit -85,634 -85,634 -85,634,
Distribution ,376.20 ,376.20 376.20
1 Provision of
surplus reserve
2 Provision for
general risks
3 Distributions to
-85,634 -85,634 -85,634,
the owners (or
,376.20 ,376.20 376.20
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
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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 428,1 1,019,3 235,70 958,94 2,628,1
17,447, 3,389,6 2,628,15
balance of the 71,88 85,022. 1,180.1 5,348.5 45,112. 6,007.09
988.68 68.49 1,119.33
reporting period 1.00 79 4 0 24
Legal representative: Zhang Xuhua 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
Semi-annual of 2021
Other equity instruments Other Retaine
Less: Total
Items Capital Preferre Capital comprehe Special Surplus d
Perpetu shares in Others owners’
stock d Others reserve nsive reserve Reserve earning
al bond stock equity
shares income s
I. Ending balance
428,091 1,027,145 61,633,53 246,531,8 722,064 2,362,201,1
of the previous
,881.00 ,928.88 0.48 66.87 ,955.20 01.47
year
Plus: Change
in accounting
policy
Correction of
previous errors
Others
II. Opening
428,091 1,027,145 61,633,53 246,531,8 722,064 2,362,201,1
balance of the
,881.00 ,928.88 0.48 66.87 ,955.20 01.47
reporting year
III. -160,37
7,458,6 56,054,08 56,238,94 -153,101,47
Decrease/increas 5,264.6
41.00 5.60 1.98 9.99
e of the report 1
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
year (decrease is
stated with “-“)
(I) Total
13,844, 13,844,801.
comprehensive
801.12 12
income
(II) Owners’ input
7,458,6 56,054,08 56,238,94 7,273,784.6
and decrease of
41.00 5.60 1.98 2
capital
1 Common shares
7,458,6 49,411,92 61,668,40 -4,797,838.
contributed by the
41.00 3.00 2.49 49
owner
2 Capital
contributed by
other equity
instruments
holders
3 Amount of
payment for 6,645,539 -5,429,46 12,075,000.
shares counted to .60 0.51 11
owners’ equity
4 Others -3,377.00 -3,377.00
-174,22
(III) Profit -174,220,06
0,065.7
Distribution 5.73
3
1 Provision of
surplus reserve
2 Distributions to -174,22
-174,220,06
the owners (or 0,065.7
5.73
shareholders) 3
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 stock)
3 Loss made up
for with surplus
reserve
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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
435,550 1,083,200 117,872,4 246,531,8 561,689 2,209,099,6
of the reporting
,522.00 ,014.48 72.46 66.87 ,690.59 21.48
period
Amount in the previous period
In CNY
Semi-annual of 2020
Other equity instruments Other
Less:
Items Capital Preferr Perpet Capital compreh Special Surplus Retained Total owners’
shares in Others
stock ed ual Others reserve ensive reserve Reserve earnings equity
stock
shares bond income
I. Ending balance 442,96
1,086,88 71,267,1 235,701, 710,223,1 2,404,511,84
of the previous 8,881.0
5,756.42 18.78 180.14 50.82 9.60
year 0
Plus:
Change in
accounting policy
Correction of
previous errors
Others
II. Opening 442,96
1,086,88 71,267,1 235,701, 710,223,1 2,404,511,84
balance of the 8,881.0
5,756.42 18.78 180.14 50.82 9.60
reporting year 0
III. -14,797 -61,845, -53,819, -84,352,50 -107,175,56
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Decrease/increas ,000.00 192.53 130.10 3.17 5.60
e of the report
year (decrease is
stated with “-“)
(I) Total
1,281,873. 1,281,873.0
comprehensive
03 3
income
(II) Owners’ input
-14,797 -61,845, -53,819, -22,823,062.
and decrease of
,000.00 192.53 130.10 43
capital
1 Common
shares -14,797 -64,385, -53,819, -25,363,818.
contributed by ,000.00 948.25 130.10 15
the owner
2 Capital
contributed by
other equity
instruments
holders
3 Amount of
payment for 2,784,09 2,784,096.6
shares counted 6.62 2
to owners’ equity
-243,340
4 Others -243,340.90
.90
(III) Profit -85,634,37 -85,634,376.
Distribution 6.20 20
1 Provision of
surplus reserve
2 Distributions to
-85,634,37 -85,634,376.
the owners (or
6.20 20
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 stock)
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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 428,17
1,025,04 17,447,9 235,701, 625,870,6 2,297,336,2
balance of the 1,881.0
0,563.89 88.68 180.14 47.65 84.00
reporting period 0
Legal representative: Zhang Xuhua Chief Financial Officer: Chen Zhuo Person in charge of the Accounting
Department: Tian Hui
III. Company Profile
FIYTA Precision Technology Co., 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 trading
commencing from June 3, 1993.
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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 AVIC International Shenzhen Co., Ltd. (AVIC
International Shenzhen) and AVIC International Holding Corporation ( with original name of Shenzhen CATIC Group Co.,
Ltd. and renamed as AVIC International Holding Corporation later on (hereinafter referred to as AVIC International), AVIC
International Shenzhen assigned 72.36 million corporate shares (taking 52.24% of the Company’s total shares) to AVIC
International. From then on, the Company’s controlling shareholder turned to be AVIC International from AVIC International
Shenzhen.
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 January 4, 2019,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 Plan” (GUO ZI KAO FEN [2018]
No. 936), and at the same time reviewed and approved by the Board of Directors and the General Meeting, the Company
awarded 4.277 million shares of A-share restrictive stock to 128 incentive objects in the Company’s Restrictive Stock
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Incentive Plan (Phase I) as at January 30, 2019. the Company’s registered capital increased to CNY 442,968,881.00 and
AVIC International holds 36.79% of the Company’s equity based capital.
According to the “Proposal on the Intentional Change of the Company Name and the Short Term of A-share Securities
reviewed and approved at 2019 3rd Extraordinary General Meeting of the Company and approved by the Administration
for Industry and Commerce of Shenzhen Municipality, commencing from January 9, 2020, the Company changed its name
from FIYTA Holdings Limited to FIYTA Precision Technology Co., Ltd.
Verified and confirmed by the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited, on April
30, 2020, the Company wrote off 14,730,000 B-shares repurchased by the Company.
According to the “Proposal for Repurchase and Cancellation of the Partial Restricted Shares Involved in 2018 A-Share
Restricted Stock Incentive Plan (Phase 2)” approved at the board meeting and general meeting, in year 2020, the
Company repurchased and canceled a total of 147,000 A-share restricted shares that were granted with the restriction not
released to 6 retired former incentive objects. After the change, the Company’s registered capital decreased to CNY
428,091,881.00.
Reviewed and approved at the 23rd session of the Ninth Board of Directors and 2021 1st Extraordinary General Meeting,
the Company granted 7,660,000 A-share restricted shares to 128 incentive objects based on the Company's A-Share
Restricted Stock Incentive Plan (Phase 2) on January 29, 2021. The Company’s registered capital increased to CNY
435,751,881.00.
In the first half year of 2021, the Company repurchased and canceled 201,359 A-share restricted shares that had been
granted to and held by 1 retired and 1 deceased former incentive objects with the restriction had not yet been relieved. After
the change, the Company’s registered capital decreased to CNY 435,550,522.00.
Ended June 30, 2021, the Company accumulatively issued altogether 435,550,522.00 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,
and the Audit Committee, the Strategy Committee and the Nomination, Remuneration and Assessment Committee under
the Board of Directors as the governance organs, etc. The Company has also established a number of functional
departments, including comprehensive management department, the Party construction work & propaganda department,
department of discipline inspection, supervision and audit, financial department, human resource department, planning and
operation department, data & information department, etc.
The business nature and 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, smart watches;
domestic trade, materials supply and sales (excluding the commodities for exclusive operation, exclusive control and
monopoly); property management and lease; design service; R&D, design, production, sales and technical services of
chronometers and their parts and components, and other precision parts; self-run import & export business
(implemented according to the Document SHEN MAO GUAN DENG ZHENG ZI No. 2007-072), etc. The Company's legal
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
representative is Zhang Xuhua.
These financial statements and notes to the financial statements were approved at the 32nd session of the Ninth Board of
Directors on August 18, 2021.
There were 13 subsidiaries consolidated during the reporting period. For the detail, refer to Note IX. "Equity in Other
Entities". For the consolidation scope in the reporting period, refer to Note VIII "Change of the Consolidation Scope".
IV. Basis for preparation of the financial statements
1. Preparation Basis
These financial statements are prepared according to the accounting standards for enterprises promulgated by the Ministry
of Finance and their application guidance, interpretations and other relevant regulations (with the unified name of
“Accounting Standards for Enterprises”) . In addition, the Group disclosed the relevant financial information according to
China Securities Regulatory Commission- Preparation Rules for Information Disclosure by Companies Offering Securities
to the Public No. 15 - General Provisions on Financial Reports (2014 Revision).
The Group 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.
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 Group determines the depreciation of fixed assets, amortization of intangible assets and revenue recognition policies
based on its own production and operation characteristics. For specific accounting policies, please refer to Note V.24, Note
V.30 and Note V.39.
1. Statement on complying with the accounting standards for business enterprise
The financial statements prepared by the Group comply with requirements of the enterprise accounting standards, truly and
completely reflect the concerned information, including the Company’s consolidation and financial position as at June 30,
2021 and the Company’s consolidation and operation achievements and consolidation, and the Company's cash flow, etc.
from January to June, 2021.
2. Fiscal period
The fiscal year of the Group is the Gregorian year, i.e. from January 1 to December 31st of a year.
3. Business Cycle
The Group's operating cycle is 12 months.
4. Recording Currency
The Company and its domestic subsidiaries use Renminbi (CNY) as the function currency for book keeping. FIYTA Hong
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Kong Co., Ltd., one of the Company's overseas subsidiaries (hereinafter referred to as "FIYTA HK") and Station-68 Limited
(hereinafter referred to as “Station-68”), one of the subsidiaries of FIYTA HK (hereinafter referred to as “Station-68” have
determined Hong Kong Dollars as its recording currency for accounting in accordance with the currencies available in its
major economic environment where it is operated. Montres Chouriet SA (hereinafter referred to as the "Swiss Company"),
one of the subsidiaries of FIYTA Hong Kong, determines Swiss Franc as its recording currency for accounting in
accordance with the currencies available in its major economic environment where it is operated and Swiss France is
converted into Renminbi in preparing its financial statements. The currency the Group takes in preparation of these
financial statements is Renminbi.
5. The accounting treatment on business consolidation under the common control and not under the common
control
(1) Business combination under the common control
For a business combination under the common control, the assets and liabilities of the combined party acquired by the
combining party in the combination, except for adjustments made due to different accounting policies, are measured based
on the book value of the combined party in the ultimate controlling party’s consolidated financial statements on the
combination date. The differences between the book value of the combination consideration (or sum of book value of
issued shares) and the book value of net assets acquired in the combination are used to adjust the capital reserve
(premium on stock capital); if the capital reserve (premium on stock capital) is not sufficient to be write down, the retained
earnings shall be adjusted.
Business combination under the common control realized through a number of transactions
In some financial statements, the share of the book value of the net assets of the combined party enjoyable on the date of
combination calculated based on the shareholding ratio on the date of combination in the consolidated financial statements
of the eventual controller is taken as the initial investment cost of the said investment; the differences between the initial
investment cost and the sum of the book value of investment held prior to the combination plus the book value of the
consideration newly paid are used to adjust the capital reserve (capital stock premium); if the capital reserve is not enough
for writing down, the retained earnings should be adjusted.
In the consolidated financial statements, the assets and liabilities of the combined party acquired by the combining party in
the combination, except for adjustments made due to different accounting policies, are measured based on the book value
of the combined party in the eventual controller’s consolidated financial statements on the date of combination. The
difference between the sum of the book value of investment held prior to the combination plus the book value of the
consideration newly paid and the book value of the net assets acquired in the combination is used to adjust the capital
reserve (capital stock premium). If the capital reserve is not enough for writing down, the retained earnings should be
adjusted. The long-term equity investment held by the combining party before acquiring the control over the combined party
has been confirmed between the latter of the date when the original equity is obtained and the date when the combining
party and the combined party are under the final control of the same party to the date of the combination. Changes in
profit and loss, other comprehensive income and other owners’ equity should be used to offset the initial retained earnings
or current gains and losses during the comparative reporting period.
(2) Business combination not under the common control
For the combination of enterprises not under the common control, the combination costs contain the assets paid by the
purchasing party on the date of purchase for acquiring the control over the purchased party, the liabilities incurred or
undertaken and the fair value of the issued equity securities. On the purchase date, the acquired assets, liabilities and
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
contingent liabilities of the acquired party are recognized at fair value.
The difference between the combination cost and the fair value of the acquiree's identifiable net assets acquired in the
combination is recognized as goodwill, and subsequent measurement is conducted at cost minus the accumulated
provision for impairment; the difference between the combination cost and the fair value of the acquiree’s identifiable net
assets obtained in the combination is included in the current profit and loss after a review.
Business combination not under the common control realized through a number of transactions
In some financial statements, the sum of the book value of the purchased party’s equity investment held before the
purchase date and the new investment cost on the purchase date is used as the initial investment cost of the investment.
Other comprehensive income of the equity investment held before the purchase date, which is measured and recognized
by the equity method, shall not be subject to accounting treatment on the date of purchase according to the same basis with
the investee's direct disposal of relevant assets or liabilities when such investment is disposed of; the owner’s equity other
than the net profits or losses, other comprehensive income and distributed profits of the investee shall be included in the
current profit and loss during the disposal at the time of disposal of the said investment. In case the equity investment held
before the date of purchase is measured based on the fair value, the cumulative changes in fair value originally included in
other comprehensive income shall be transferred to the current profits and losses measured by the equity method.
In the consolidated financial statements, the combination cost is the sum of the payment as at the date of purchase and the
fair value of the equity of the acquiree as at the date of acquisition already held before the date of purchase. The equity of
the purchased party as held before the date of purchase is remeasured 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, the change of
other owner’s equity is transferred to the current income as at the date of purchase except the other comprehensive
income arising from the change of the net liabilities or net assets due to the investee’s remeasured and reset income plan.
(3) Treatment of the relevant transaction expenses in business combination
Intermediary fees in connection with audit, law service, appraisal and consulting as well as the other relevant administrative
expenses incurred during the business combination shall be counted to the current profit and income at the time of
incurrence. The transaction costs of equity securities or debt securities issued as combination consideration shall be
included in the initial confirmation amount of equity securities or debt securities.
6. Method of preparing consolidated financial statements
(1) Combination Scope
The consolidation scope of the consolidated financial statements is determined on the basis of control. Control refers to that
the Company owns the power over the investee, enjoys variable return by participating in the relevant activities of the
investee and is able to impact the amount of return by using the power over the investee. A subsidiary refers to an entity
under control of the Company (including the divisible part, structurized subject in the Company and/or investee).
(2) Method of preparing consolidated financial statements
The consolidated financial statements are, on the basis of the financial statements of the Company and its subsidiaries,
prepared by the Company. In preparation of the consolidated financial statements, the accounting policies and accounting
period of the Company and its subsidiaries should be kept unified and the balance of the mutual significant transactions
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
and dealings should be offset.
During the reporting period, the subsidiaries and businesses added due to a business combination under the common
control are deemed to be included in the Company’s consolidation scope from the date when they are controlled by the
eventual controlling party, and the operating results and cash flows commencing the date when they are controlled by the
eventual controlling party are respectively included in the consolidated income statement and consolidated cash flow
statement.
For the subsidiaries and businesses added due to business combinations not under the common control during the
reporting period, the income, expenses, and profits of the subsidiaries and businesses from the purchase date to the end of
the reporting period are included in the consolidated income statement, and their cash flows are included in the
consolidated cash flow statement.
The part of the subsidiary’s shareholder’s equity that does not belong to the Company is presented separately as a
minority shareholder’s equity in the consolidated balance sheet under the shareholder’s equity item; the item of "Minority
Shareholders' Profit and Loss" is presented under the item of net profit in the consolidated profit statement. When the loss
in a subsidiary shared by minority shareholders exceeds the share in the shareholders’ equity enjoyable by the minority
shareholders at the beginning of the reporting period, and its balance still writes down the minority shareholders’ equity.
(3) Purchase of the minority shareholders’ equity of subsidiaries
The difference between the long-term equity investment cost newly acquired due to the purchase of minority equity and the
enjoyable net asset share of the subsidiaries that are continuously calculated from the date of purchase or the combination
date calculated based on the proportion of the newly added shareholding, and without losing control, the difference
between the disposal price obtained from the partial disposal of the equity investment in the subsidiary and the disposal of
the long-term equity investment corresponding to the subsidiary’s net asset share continuously calculated from the date of
purchase or combination, both adjust the capital reserve (equity premium) in the consolidated balance sheet. If the capital
reserve is insufficient to offset, adjust the retained earnings.
(4) Treatment of loss of control over a subsidiary
If the control of an original subsidiary is lost due to the disposal of part of the equity investment or other reasons, the
remaining equity shall be remeasured according to its fair value on the date of loss of control; the difference formed
between the sum of the consideration obtained from the disposal of the equity and the fair value of the remaining equity,
minus the sum of the share of the book value of the original subsidiary’s net assets calculated continuously from the date
of purchase and the sum of the goodwill calculated based on the original shareholding ratio is counted to the return on
investment in the very period when the control is lost.
Other comprehensive income related to the equity investment of the original subsidiary shall be transferred to the profit and
loss of the period when the control is lost, except for other comprehensive income arising from changes in net liabilities or
net assets of the investee's re-measurement of the defined income plan.
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. The Group classifies joint
venture arrangements into joint management and joint venture.
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
(1) Joint management
Joint management refers to the joint venture arrangement that the Group enjoys the relevant assets of the arrangement
and undertakes the relevant liabilities of the arrangement.
The Group confirms the following items related to the share of interests in joint management, and conducts accounting
treatment in accordance with the relevant accounting standards for enterprises:
A. to recognize the assets held separately, and recognize the assets held jointly by their shares;
B. to recognize the liabilities borne individually and the liabilities borne jointly according to their share;
C. to recognize the income generated from the sale of its share of joint management output;
D. to recognize the income generated by the joint management from the sale of output according to its share;
E. to recognize the expenses incurred separately, and recognize the expenses incurred in joint management according to
their share.
(2) Joint Venture
Joint venture refers to the joint venture arrangement that the Group only enjoys rights to the net assets of the arrangement.
The Group accounts for the investment in joint ventures in accordance with the provisions of the equity method for
long-term equity investments.
8. Standard for recognizing cash and cash equivalent
Cash refers to the cash in stock and the deposit in hand available for payment at any time. Cash equivalent refers to the
investment held by the Group with short term, strong liquidity and low risk of value fluctuation that is easy to be converted
into cash of known amount.
9. Foreign currency transactions and translation of foreign currency statements
(1) Foreign Currency Translation
At the time of recognition of foreign currency transaction in the Group, the amount in a foreign currency shall be translated
into amount in the functional currency at the spot exchange rate of the transaction date.
On the balance sheet date, foreign currency monetary items are translated at the spot exchange rate of the balance sheet
date. The exchange difference arising from the difference between the spot exchange rate on the balance sheet date and
the spot exchange rate at the time of initial recognition or prior to the balance sheet date shall be recorded in the profits and
losses in the current period; a foreign currency non-monetary item measured at the historical costs shall still be translated
at the spot exchange rate on the transaction date; non-monetary items in foreign currencies measured at fair value are
translated at the spot exchange rate on the date when the fair value is determined, and the difference between the
translated bookkeeping currency amount and the original bookkeeping currency amount is included in the current profit and
loss.
(2) Translation of Foreign Currency Financial Statements
On the balance sheet date, when translating the foreign currency financial statements of overseas subsidiaries, the assets
and liabilities in the balance sheet are translated at the spot exchange rate on the balance sheet date. The shareholders’
equity items except for "retained earnings", other items are translated by using the spot exchange rate on the date of
occurrence.
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
The items of incomes and expenses in the profit statement are translated at the current average exchange rate on the
transaction occurring date.
All items in the cash flow statement are translated at the spot exchange rate on the date of the cash flow. The impact of
exchange rate changes on cash is regarded as an adjustment item, and the item "impact of exchange rate changes on
cash and cash equivalents" is reflected separately in the cash flow statement.
The difference arising from the translation of financial statements is reflected in the “other comprehensive income” under
the shareholders’ equity of the balance sheet.
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.
10. Financial instruments
Financial instruments refer to contracts that form one party's financial assets and other parties' financial liabilities or equity
instruments.
(1) Recognition and derecognition of financial instruments
A financial asset or financial liability is recognized when the Group becomes a party to a financial instrument contract.
Where a financial asset meets any of the following requirements, it shall be stopped from recognition:
① where the contractual rights for collecting the cash flow of the said financial asset are terminated; or
② Where the said financial asset is transferred and it meets the conditions for recognizing the termination of the transfer of
the following financial assets.
A financial liability may not be stopped from recognition in all or in part until the prevailing obligations of financial liabilities
are all or partly dissolved. The Group (the debtor) and the creditor enter an agreement to substitute the existing financial
liabilities in the manner of undertaking new financial liabilities, and the contract's articles of new financial liabilities and the
existing financial liabilities are materially different, recognition on the existing liabilities is terminated and new liabilities are
recognized synchronously.
The financial assets purchased or sold in any conventional manner are made accounting confirmation and termination of
confirmation on the date of transaction.
(2) Classification and measurement of financial assets
The financial assets of the Group are classified into three categories at the initial recognition according to the business
model of the Group'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.
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Financial assets measured based on the amortized cost
The Group classifies financial assets that meet the following conditions and are not designated as financial assets
measured at fair value and whose changes are included in the current profits and losses, as financial assets measured at
amortized cost:
The business model of the Group to manage the financial assets is to collect contractual cash flow as the goal;
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.
After the initial recognition, the actual interest rate method is used to measure such financial assets at amortized cost. The
gains or losses arising from financial assets that are measured at amortized cost and are not part of any hedging
relationship are included in the current profits and losses when they are terminated, amortized according to the effective
interest method, or recognized as impairment.
Financial asset that is measured at fair value and whose change is included in other comprehensive income
The Group classifies financial assets that meet the following conditions and are not designated as financial assets
measured at fair value and whose changes are included in the current profits and losses, as financial assets measured at
fair value and whose change is included in other comprehensive income:
The Group’s business model for managing this financial asset is aimed at both collecting contractual cash flow and selling
the financial asset;
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.
After the initial confirmation, the subsequent measurement of such financial assets shall be carried out at fair value. Interest,
impairment losses or gains and exchange gains and losses calculated using the effective interest rate method are included
in the current profit and loss, and other gains or losses are included in other comprehensive income. When the recognition
is terminated, the accumulated gains or losses previously included in other comprehensive income are transferred from
other comprehensive income and included in the current profit and loss.
The financial asset measured at fair values with the change counted to the current profit and loss
Except for the above-mentioned financial assets measured at amortized cost and at fair value with changes included in
other comprehensive income, the Group classifies all other financial assets as financial assets at fair value with changes
included in current profits and losses. At the time of initial recognition, in order to eliminate or significantly reduce
accounting mismatches, the Group irrevocably designates part of the financial assets that should be measured at
amortized cost or at fair value with changes included in other comprehensive income as the financial assets which are
measured at fair value and whose changes are included in the current profit and loss.
After initial recognition, such financial assets are subsequently measured at fair value, and the resulting gains or losses
(including interest and dividend income) are included in the current profits and losses, unless the financial assets are part of
the hedging relationship.
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
However, for non-transactional equity instrument investments, the Group irrevocably designates them as financial assets
measured at fair value and whose changes are included in other comprehensive income at the time of initial recognition.
The designation is made on the basis of an individual investment, and the related investment meets the definition of an
equity instrument from the issuer's perspective.
After the initial confirmation, the subsequent measurement of such financial assets shall be carried out at fair value.
Dividend income that meets the conditions is included in profit and loss, and other profits or losses and changes in fair
value are included in other comprehensive income. When the recognition is terminated, the accumulated gains or losses
previously included in other comprehensive income are transferred out from other comprehensive income and included in
the current profit and loss.
The business model of managing financial assets refers to how the Group manages financial assets to generate cash flow.
The business model determines whether the source of the cash flow of the financial assets managed by the Group is to
collect contractual cash flows, sell financial assets, or both. The Group determines the business model for managing
financial assets based on objective facts and the specific business objectives of the management of financial assets
determined by key management personnel.
The Group evaluates the contractual cash flow characteristics of financial assets to determine whether the contractual cash
flow generated by the relevant financial assets on a specific date is only the payment of the principal and interest based on
the outstanding principal amount. Where, the principal refers to the fair value of financial assets at the time of initial
recognition; interest includes consideration for the time value of money, the credit risk associated with the outstanding
principal amount in a specific period, and other basic borrowing risks, costs and consideration of profit. In addition, the
Group evaluates contract terms that may cause changes in the time distribution or amount of contractual cash flows of
financial assets to determine whether they meet the above-mentioned contractual cash flow characteristics.
Only when the Group changes the business model of managing financial assets, all affected financial assets will be
reclassified on the first day of the first reporting period after the business model is changed, otherwise the financial assets
shall not be reclassified after initial recognition.
Financial assets are measured at fair value at the initial recognition time. 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. For accounts receivable arising from the sale of products or the provision of labor services that do
not contain or consider significant financing components, the amount of consideration that the Group expects to be entitled
to receive is taken as the amount initially recognized.
(3) Classification and measurement of financial liabilities
At the time of initial recognition, the Group’s financial liabilities are classified into: financial liabilities measured at fair value
and whose changes are included in the current profit and loss and financial liabilities measured at amortized cost. For
financial liabilities that are not classified as measured at fair value and whose changes are included in the current profit and
loss, the relevant transaction costs are included in the the initially recognized amount.
The financial asset measured at fair values with the change counted to the current profit and loss
Financial liabilities measured at their fair values with the change included in the current profits and losses include
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
transactional financial liabilities, including transactional financial liabilities and the financial liabilities measured at fair value
with the change counted to the current profits and losses directly designated at the initial recognition. This type of financial
liability is subsequently measured at fair value, and the gains or losses arising from change of fair value and the dividends
and interests related to such financial liabilities are included in the current profits and losses.
Financial liabilities measured based on the amortized cost
The gains or losses generating in case of terminated confirmation, occurrence of devaluation or amortization are included
in the current profits and losses.
Financial guarantee contract
Financial guarantee contracts are not designated as financial liabilities measured at fair value with the change included in
the current profit and loss. They are measured at fair value at the time of initial recognition, and subsequently measured
based on the higher of the provision for the loss of the predicted liabilities determined by the expected credit loss model and
the initially recognized amount less the balance of the accumulated amortization amount.
Distinction between financial liabilities and equity instruments
"Financial liabilities" refers to the liabilities which satisfy one of the following conditions:
①the contractual obligations to deliver cash or any other financial assets to any other entity;
② the contractual obligations to exchange with any other entity financial assets or financial liabilities under potentially
unfavorable conditions;
③ the contractual obligations to non-derivative instruments which must be settled or may be settled by the enterprise with
its own equity instruments in the future, whereby the enterprise will deliver an unfixed amount of equity instruments of its
own according to the said contract;
④the contractual obligations to non-derivative instruments which must be settled or may be settled by the enterprise with its
own equity instruments in the future, but with the exception of the contractual obligations to the derivative instruments for
which the enterprise will exchange for a fixed amount of its own equity instruments with a fixed amount of cash or any other
financial assets.
“Equity instruments” refers to the contracts which can prove that a certain enterprise holds the surplus equities of the
assets after all the debts have been deducted.
If the Group cannot unconditionally avoid the delivery of cash or other financial assets to fulfill a contractual obligation, the
contractual obligation meets the definition of a financial liability.
If a financial instrument needs to be settled with or can be settled with the Group’s own equity instruments, it is necessary
to consider whether the Group’s own equity instrument used for settle that instrument is used as cash or the substitution of
other financial asset or to make the instrument holder enjoy the residual equity in the asset with all liabilities deducted. If it is
the former, the instrument is a financial liability of the Group; if it is the latter, the instrument is an equity instrument of the
Group.
(4) Fair value of financial instrument
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For the method for determining fair value of financial assets and financial liabilities, refer to Sections 10 and 11.
(5) Impairment of financial assets
Based on expected credit losses, the Group performs impairment accounting treatments on the following items and
recognizes the provision for loss:
Financial assets measured based on the amortized cost;
Receivables and debt investments that are measured at fair value and whose changes are included in other
comprehensive income;
The contractual assets defined in Accounting Standards for Enterprises No. 14 – Revenues;
Lease receivables;
Financial guarantee contracts (with the exception of those formed with the financial assets measured with fair value and the
change included in the current profit and loss and transfer of financial assets not satisfying the derecognition or continued
to be involved in the transfer).
Measurement of expected credit losses
Expected credit loss refers to the weighted average of the credit losses of financial instruments based on the risk of default.
Credit loss refers to the difference between all contractual cash flows receivable under the contract and all cash flows
expected to be received by the Group discounted at the original effective interest rate, that is, the present value of all cash
shortages.
The Group 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.
The Group 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 Group 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 Group measures the loss provision based on the expected credit loss for the entire duration of the
instrument; if a financial instrument has been credit-impaired since its initial recognition, it is in the third stage. The Group
measures the loss provision based on the expected credit loss for the entire duration of the instrument.
For financial instruments with lower credit risk on the balance sheet day, the Group assumes that its credit risk has not
increased significantly since the initial recognition, and provision for loss is measured based on expected credit losses in
the next 12 months.
Expected credit loss during the entire lifetime refers to the expected credit loss caused by all possible default events during
the entire expected lifetime of a financial instrument. Expected credit losses in the next 12 months refer to the expected
credit loss caused by default events of financial instruments that may occur within 12 months after the balance sheet date
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(if the expected duration of the financial instrument is less than 12 months, it is then the expected duration). It is part of the
expected credit losses in the entire duration.
When measuring the expected credit losses, the longest period that the Group needs to consider is the longest contract
period during which the Company is confronted with credit risk (including consideration of the option of renewal).
For the financial instrument at the first stage or the second stage or with lower credit risk, the Group calculates the interest
income based on book balance before deduction of the provision for impairment and the actual interest rate. For the
financial instrument at the third stage, the Group calculates the interest income according to the book balance less the
amortized cost after provision for the impairment and actual interest rate.
Regarding notes receivable, accounts receivable, and contract assets, regardless of whether there is a significant financing
component, the Group always measures its loss reserves at an amount equivalent to expected credit losses during the
entire duration.
When the information of the expected credit loss of a single financing asset cannot be assessed with reasonable cost, The
Group divides and combines notes receivable and accounts receivable based on credit risk characteristics, and calculates
expected credit losses on the basis of the combination. The basis for determining the combination is as follows:
A. Notes receivable
Combination of notes receivable 1: Bank acceptance
Combination of notes receivable 2: Trade acceptance
B. Accounts receivable
Combination of accounts receivable 1: Accounts receivable from the related parties within the combination scope
Combination of accounts receivable 2:Accounts receivable from other customers
C. Contract assets
Combination of contract assets 1: Sales of products
For notes receivable and contract assets classified into portfolios, the Group refers to historical credit loss experience, with
combination of current conditions and forecasts of future economic conditions, calculates expected credit losses based on
the default risk exposure and the lifetime expected credit loss rate.
For accounts receivable divided into portfolios, the Group refers to historical credit loss experience, with combination of
current conditions and forecasts of future economic conditions, and compiles a comparison table of accounts receivable
age/days overdue and the expected credit loss rate for the entire duration, calculates the expected credit losses.
Other receivables
The Group divides other receivables into several combinations based on the characteristics of credit risk, and calculates
expected credit losses on the basis of the combination. The basis for determining the combination is as follows:
Combination of other receivables 1: Deposit and margin receivable
Combination of other receivables 2: Employee reserves receivable
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Combination of other receivables 3: Advances for social security premium
Combination of accounts receivable 4: Accounts receivable from the related parties within the combination scope
Combination of other receivables 5: Other receivables
For other receivables classified into portfolios, the Group calculates expected credit losses based on the default risk
exposure and the expected credit loss rate within the next 12 months or the entire duration.
Equity investment and other equity investment
For debt investments and other debt investments, the Group calculates the expected credit loss based on the nature of the
investment, the counterparty and various types of risk exposures, through the default risk exposure and the expected credit
loss rate within the next 12 months or the entire duration.
Assessment of significant increase in credit risk
The Group compares the default risk of financial instruments on the balance sheet date and the risk of default on the initial
recognition date to determine the relative change in the default risk of the financial instrument during the expected life of the
financial instrument to assess whether the credit risk of the financial instrument has significantly increased since the initial
recognition.
When determining whether the credit risk has increased significantly since the initial recognition, the Group considers
reasonable and evidence-based information that can be obtained without unnecessary additional costs or efforts, including
forward-looking information. The information the Group takes into consideration includes:
A debtor fails to pay the principal and interest on the due date of the contract;
A serious deterioration in the external or internal credit rating (if any) of the financial instrument has occurred or is expected;
A serious deterioration in the debtor’s operating results that has occurred or is expected;
The existing or anticipated changes in technology, market, economic or legal environment will have a significant adverse
impact on the debtor's ability to repay the Group.
According to the nature of financial instruments, the Group assesses whether credit risk has increased significantly on the
basis of individual financial instruments or a portfolio of financial instruments. When conducting assessment with a portfolio
of financial instruments as base, the Group may classify financial instruments based on common credit risk characteristics,
such as overdue information and credit risk ratings.
Financial assets with credit impairment already incurred
On the balance sheet date, the Group assesses whether financial assets measured at amortized cost and debt investments
measured at fair value with changes included in other comprehensive income have experienced credit impairment. When
one or more events that have an adverse effect on the expected future cash flow of a financial asset occur, the financial
asset becomes a financial asset that has been credit-impaired. Evidence of credit impairment of financial assets includes
the following observable information:
The issuer or debtor has experienced major financial difficulty;
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The debtor has violated the contract, such as failure in or late payment of the interest or the principal;
The Group, out of economic or contractual considerations related to the debtor’s financial difficulties, gives the debtor
concessions that the Group shall never make under any other circumstances;
The debtor is likely to go bankrupt or carry out other financial restructuring;
The issuer or debtor’s financial difficulties caused the disappearance of the active market for the financial asset.
Presentation of the provision for expected credit loss
In order to reflect the changes in the credit risk of financial instruments since the initial recognition, the Group remeasures
expected credit losses on each balance sheet date, and the resulting increase in loss provision or the amount reversed
should be counted in the current profit and loss as impairment losses or gains. For financial assets measured at amortized
cost, the provision for loss is offset against the book value of the financial asset listed in the balance sheet; for debt
investments that are measured at fair value and whose changes are included in other comprehensive income, the Group
recognizes the provision for loss in other comprehensive income without writing down the book value of the financial asset.
Written-off
If the Group no longer reasonably expects that the contractual cash flow of a financial asset can be recovered in whole or in
part, it will directly write down the book balance of the financial asset. This write-down constitutes the derecognition of
related financial assets. This situation usually occurs when the Group determines that the debtor has no assets or sources
of income that can generate sufficient cash flow to repay the amount to be written down. However, in accordance with the
Group's procedures for recovering due due payments, the financial assets that have been written down may still be affected
by the execution activities.
The written-down financial assets are later on recovered, as the reversal of the impairment loss is included in the current
profit and loss of the recovery period.
(6) Transfer of financial assets
The transfer of financial assets refers to the transfer or delivery of financial assets to a party other than the issuer of the
financial asset (the transferee).
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 Group 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.
(7) Offsetting of financial assets and financial liabilities
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When the Group has the legal rights of setting off the recognized financial assets and financial liabilities and can currently
these legal rights now, and if the Group has the plan to settle with net amount or synchronously realize these financial
assets and discharge these financial liabilities, the financial assets and financial liabilities are listed in the balance sheet
with the amount after mutual offsetting. Except that, financial assets and financial liabilities are listed respectively in the
balance sheet and are not set off mutually.
11. Notes receivable
For the detail, refer to Note V.10.
12. Accounts receivable
For the detail, refer to Note V.10.
13. Financing with accounts receivable
For the detail, refer to Note V.10.
14. Other receivables
Method for determination and accounting treatment of the expected credit loss of other receivables
For the detail, refer to Note V.10.
15. Inventories
(1) Classification of Inventories
The Group classifies inventories into raw materials, products-in-process and commodity stocks.
(2) Price Measurement of Inventories Delivered
The Group's inventory is priced at actual cost when it is obtained. Raw materials 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) Basis for determining net realizable value of inventories and method for providing reserve 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 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 date, if the cost of inventories is higher than its net realizable value, provision for falling prices of
inventories shall be made. The Group makes provision for inventory depreciation for self-produced FIYTA watch inventory
according to model classification, and makes provision for inventory depreciation for brand-name watches sold in
accordance with individual inventory items. On the balance sheet date, if the factors affecting the previous write-down of the
inventory value have disappeared, the inventory depreciation reserve shall be reversed within the amount originally
withdrawn.
(4) Inventory system
The Group adopts the perpetual inventory system.
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(5) Amortization of low-value consumption goods and packing materials.
Low value consumables and packing materials are amortized in lump sum at the time of reception.
16. Contract assets
For the detail, refer to Note V.10.
17. Contract cost
Contract costs include incremental costs incurred in obtaining contracts and their performance costs.
The incremental cost incurred in obtaining the contract refers to the cost that no cost may incur if the Group does not obtain
the contract (such as sales commission, etc.) If the cost is expected to be recovered, the Group recognizes it as a contract
acquisition cost as an asset. Other expenses incurred by the Group in order to obtain the contract, other than the
incremental cost that is expected to be recovered, are included in the current profit and loss when incurred.
If the cost incurred to fulfill the contract does not fall within the scope of other accounting standards for enterprises such as
inventory and meets the following conditions at the same time, the Group will recognize it as the contract performance cost
as an asset:
①The cost is directly related to a current or anticipated contract, including direct labor, direct materials, manufacturing
expenses (or similar expenses), costs clearly borne by the customer, and other costs incurred solely due to the contract;
②The cost has increased the resource the Group shall use to fulfill its performance obligation in the future;
③The cost is expected to be recoverable.
Assets recognized for contract acquisition costs and assets recognized for contract performance costs (hereinafter referred
to as "assets related to contract costs") are amortized on the same basis as the revenue recognition of goods or services
related to the asset and included in the current profit and loss. If the amortization period does not exceed one year, it shall
be included in the current profit and loss when it incurs.
When the book value of the asset related to the contract cost is higher than the difference between the following two items,
the Group makes provision for impairment of the excess part and recognizes it as an asset impairment loss:
①The remaining consideration that the Group expects to obtain due to the transfer of goods or services related to the
asset;
②Estimate the costs to incur for the transfer of the related goods or services.
The contract performance cost recognized as an asset with the amortization period not to exceed one year or a normal
business cycle at the initial recognition is presented in the "inventory"; if the amortization period exceeds one year or a
normal business cycle at the initial recognition, the same is presented in the “other non-current assets”.
The contract acquisition cost recognized as an asset with the amortization period not to exceed one year or a normal
business cycle at the initial recognition is presented in the "other current assets"; if the amortization period exceeds one
year or a normal business cycle at the initial recognition, the same is presented in the “other non-current assets”.
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18. Classified as assets held for sale
Inapplicable
19. Equity investment
Inapplicable
20. Other equity investment
Inapplicable
21. Long term accounts receivable
Inapplicable
22. Long-term equity investments
Long-term equity investments include equity investments in subsidiaries, joint ventures and associates. If the Group is able
to exert significant influence on an investee, the investee is an associated enterprise of the Group.
(1) Determination of the initial investment cost
Long term equity investment which forms business combination: for long-term equity investments obtained in a business
combination under the common control, the book value share of the acquired owner’s equity in the ultimate controlling
party’s consolidated financial statements on the combination date shall be used as the investment cost; for long-term
equity investments obtained in a business combination not under the same control, the combined cost is regarded as the
investment cost of long-term equity investment.
For long-term equity investments obtained by other means: for long-term equity investments obtained by paying cash, the
actual purchase price paid shall be used as the initial investment cost; for long-term equity investments obtained by issuing
equity securities, the fair value of the issued equity securities shall be used as the initial investment cost.
(2)Subsequent measurement and recognition of gains and losses
Investments in subsidiaries are accounted for using the cost method, unless the investment meets the conditions for
holding for sale; investments in associates and joint ventures are accounted for using the equity method.
For long-term equity investments accounted for by the cost method, in addition to the actual price paid when the investment
is obtained or the cash dividends or profits declared but not yet paid is included in the consideration, the cash dividends or
profits declared to be distributed by the investee are recognized as investment income and included in the current profit and
loss.
For long-term equity investments accounted for by the equity method, if the initial investment cost is greater than the fair
value of the investee’s identifiable net assets at the time of investment, the investment cost of the long-term equity
investment shall not be adjusted; if the initial investment cost is less than the investment and if the fair value share of
distinguishable net asset in the invested entity is enjoyable, the book value of the long-term equity investment is adjusted,
and the difference shall be included in the current profit and loss of the investment.
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
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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 based on the accounting policy and accounting period of the Group.
If it is possible to exert a significant influence on the investee or implement joint control but does not constitute control due
to additional investment or other reasons, on the conversion date, the fair value of the original equity plus the sum of the
new investment cost shall be used as the initial investment cost accounted by changing to use the equity method cost. The
difference between the fair value and book value of the original equity on the conversion date, and the accumulated fair
value changes originally included in other comprehensive income are transferred to the current profit and loss accounted
for by the equity method.
If the joint control or significant influence on the investee is lost due to the disposal of part of the equity investment, the
remaining equity after the disposal shall undergo accounting treatment according to "Accounting Standards for Enterprises
No. 22 - Recognition and Measurement of Financial Instruments instead on the day when joint control or significant
influence is lost, and the difference between the fair value and the book value is included in the current profit and loss. 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 the equity method is terminated; all other changes in owner's equity related to the original
equity investment are transferred to the current profit and loss.
In case the Group has lost the control over an investee due to disposal of partial equity, etc., the remaining equity after
disposal can still implement joint control over or significant influence on the 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 Accounting Standards
for Enterprises No. 22 - Recognition and Measurement of Financial Instruments; the balance between the fair value as at
the day of loosing the control power and the book value is counted to the current gains and losses.
If the Company’s shareholding ratio decreases due to the increase of capital by other investors, thereby losing control, but
may exercise joint control or exert significant influence on the invested entity, the new shareholding ratio shall be used to
confirm the Company’s share of the invested entity due to the increase in capital; difference between the increase in the
share of net assets due to share expansion and the original book value of the long-term equity investment corresponding
to the decline in the shareholding ratio that should be carried forward is included in the current profit and loss; then,
according to the new shareholding ratio, it is deemed that the equity method is used for accounting and adjustment when
the investment is obtained.
The unrealized internal transaction gains and losses between the Group and associates and joint ventures are calculated
based on the shareholding ratio attributable to the group, and the investment gains and losses are recognized on the basis
of offset. However, the loss from no internal transaction between the Group and an investee shall not be offset if the loss
belongs to impairment of the assets assigned.
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(3) Determining the basis for joint control and significant influence on the investee
Joint control refers to the joint control over some arrangement according to the relevant agreement and the relevant
activities for the arrangement must be jointly decided by all the parties sharing the control power. When judging whether
there exists joint control, firstly determine whether all participants or a combination of participants collectively control the
arrangement, and secondly determine whether the decision-making related to the arrangement must be unanimously
agreed by the participants who collectively control the arrangement. If all participants or a group of participants must act in
concert to determine the relevant activities of an arrangement, it is considered that all participants or a group of participants
collectively control the arrangement; if there is a combination of two or more parties that can collectively control an
arrangement, it does not constitute joint control. When judging whether there is joint control, the protective rights enjoyed
are not taken into consideration.
Significant influence refers to the investor'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. When determining whether it
can exert a significant influence on the investee, consider that the investor directly or indirectly holds the voting shares of
the investee and the current executable potential voting rights held by the investor and other parties. The impact of the
equity of the company includes the impact of current convertible warrants, share options and convertible corporate bonds
issued by the investee.
When the Company directly or indirectly through its subsidiaries owns more than 20% (including 20%) but less than 50% of
the voting shares of the investee, it is generally considered to have a significant impact on the investee, unless there is
clear evidence that under such situation the Company cannot participate in the production and operation decision-making
of the invested entity resulting in no significant influence; when the Group owns less than 20% (excluding 20%) of the voting
shares of the investee, it is generally not considered to have a significant impact on the investee unless there is clear
evidence that under such a situation the Group can participate in the production and operation decision-making of the
investee resulting in significant influence.
(4) Method for testing the impairment and provision for impairment
For investment in subsidiaries, associates and joint ventures, refer to Note V. 31 - method for provision for impairment of
assets.
23. Investment real estate
Measurement model for investment real estate
Measured based on the cost method
Depreciation or amortization method
Investment 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. The Group's investment real estate includes 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.
The Group's investment real estate is initially measured at the cost at the time of acquisition, and depreciation or
amortization is accrued on schedule in accordance with the relevant regulations on fixed assets or intangible assets.
For investment real estate that adopts the cost model for subsequent measurement, refer to Note V. 31 - method of
accruing asset impairment.
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The balance of the income from disposal of investment based real estate, including sale, assignment, discarding or
damage, after deduction of the book value and the relevant taxes. is counted to the current profit and loss.
The depreciation method of investment real estate is the same as the depreciation method of fixed assets. Refer to Note
V.24.
24. Fixed asset
(1) Recognition of fixed assets
Fixed assets of the Group 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. The economic benefits related
to the fixed asset are likely to flow into the enterprise, and the cost of the fixed asset can be reliably measured before the
fixed asset can be recognized. When fixed assets are acquired, they are initially measured at actual cost.
(2) Depreciation methods
Categories Depreciation methods Depreciation life Residual rate Yearly depreciation rate
Plant & buildings Average service life method 20 -35 5.00 4.80%-2.70%
Machinery & equipment Average service life method 10 5.00-10.00 9.50%-9.00%
Electronic equipment Straight-line method 5 5.00 19.00%
Motor vehicle Straight-line method 5 5.00 19.00%
Other equipment Straight-line method 5 5.00 19.00%
Where, for fixed assets with provision for impairment, the accumulated amount of provision for impairment of fixed assets
should also be deducted to determine the depreciation rate.
(3) Basis for recognizing the fixed assets under financing lease, Pricing and Depreciation Methods
Inapplicable
25. Construction-in-progress
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.
Refer to Note V. 31 for the method of provision for asset impairment of construction-in-process.
26. Borrowing Costs
(1)Recognition principle of capitalization of borrowing costs
If the borrowing costs incurred to the Group can be directly attributable to the acquisition, construction or production of
assets that meet the conditions for capitalization, they shall be capitalized and included in the cost of the relevant assets;
other borrowing costs shall be recognized as expenses based on the amount incurred when they incur and included in the
current profit and loss. If the borrowing costs meet the following conditions at the same time, capitalization begins:
① Asset expenditures have already occurred, including expenditures in the form of paying cash, transferring non-cash
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assets, or assuming interest-bearing debts for the purchase, construction or production of assets that meet the
capitalization conditions;
② Borrowing costs have incurred;
③ The purchase, construction or production activities necessary for the assets to reach the expected usable or saleable
state have already begun.
(2)Period of capitalization of borrowing costs
When the Group's acquisition, construction or production of assets that meet the capitalization conditions reaches the
intended usable or saleable state, the capitalization of borrowing costs shall cease. The borrowing costs incurred after the
assets that meet the capitalization conditions reach the expected usable or saleable state, when incurred, are recognized
as expenses based on the amount incurred and included in the current profit and loss.
If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition, construction or
production process, and the interruption lasts for more than 3 months, the capitalization of borrowing costs shall be
suspended; the capitalization of borrowing costs during the normal interruption period shall continue.
(3) Borrowing cost capitalization rate and calculation method of capitalization amount
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.
27. Biological Assets
Inapplicable
28. Oil and Gas Assets
Inapplicable
29. Use right assets
The assets the Company has the right to use mainly include houses and buildings.
On the starting date of the lease term, the Group recognizes its right to use the leased asset during the lease term as an
asset with use right, including: the initial measurement amount of the lease liability; for lease payments paid on or before
the starting date of the lease term, if there is a lease incentive, the amount of the lease incentive already enjoyed is
deducted; initial direct expenses incurred by the lessee; the costs the lessee expects to incur for dismantling and removing
the leased asset, restoring the site where the leased asset is located, or restoring the leased asset to the state agreed upon
in the lease terms. The Company subsequently adopts the life average method to depreciate the assets with use right. If it
can be reasonably determined to obtain the ownership of the leased asset at the expiration of the lease term, the Company
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shall accrue depreciation during the remaining useful life of the leased asset. If it is impossible to reasonably determine that
the ownership of the leased asset can be obtained when the lease term expires, the Company shall accrue depreciation
during the shorter period of the lease term and the remaining useful life of the leased asset.
When the Company remeasures the lease liability according to the present value of the lease payment after the change,
and adjusts the book value of the asset with use right accordingly, if the book value of the asset with use right has been
reduced to zero, but the lease liability still needs to be further reduced, and the Company will include the remaining amount
in the current profit and loss.
30. Intangible assets
(1) Pricing Method, Service Life and Impairment Test
The Group's intangible assets include land use right, software systems, trademark use right, etc.
Intangible assets are initially measured at cost, and their useful lives are analyzed and judged when the intangible assets
are acquired. If the service life is limited, from the time the intangible asset is available for use, an amortization method that
reflects the expected realization method of the economic benefits related to the asset shall be adopted and amortized within
the expected service life; if the expected realization method cannot be reliably determined, the straight-line method is used
for amortization; intangible assets with uncertain service life are not amortized.
The method for amortization of intangible assets with limited service life is as follows:
Categories Useful Life Amortization Method Remarks
Land use right 50 Straight-line method
Software system 5 Straight-line method
Trademark rights 5-10 Straight-line method
At the end of each year, the Group reviews the useful life and amortization method of intangible assets with a limited useful
life. If it is different from the previous estimate, the original estimate is adjusted and the accounting estimate is changed.
If an intangible asset is expected to no longer bring future economic benefits to the Company on the balance sheet date,
the book value of the intangible asset shall be transferred to the current profit and loss.
Refer to Note V. 31 for the method of provision for impairment of intangible 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.
Expenditures in the development stage can be capitalized only if the following conditions are met at the same time, that is, it
is technically feasible to complete the intangible asset so that it can be used or sold; it has the intention to complete the
intangible asset and use or sell it; the way intangible assets generate economic benefits, including the ability to prove that
the products produced by the intangible assets exist in the market or the intangible assets themselves exist in the market,
and the intangible assets will be used internally, which can prove their usefulness; there are sufficient technical, financial
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and other resources to support to complete the development of the intangible asset, and have the ability to use or sell the
intangible asset; the expenditure attributable to the development stage of the intangible asset can be reliably measured.
Development expenditures that do not meet the above conditions are included in the current profit and loss.
The research and development projects of the Group will enter into the development stage after meeting the above
conditions and passing through the technical feasibility and economic feasibility studies and the formation of the project.
Capitalized expenditure on the development phase is presented as “development costs” in the balance sheet and shall
be transferred to intangible assets when the project is completed to its intended use state.
31. Impairment of long term assets
Impairment of the assets, including long-term equity investment in subsidiaries, associates and joint ventures, investment
real estate, fixed assets, construction in progress, intangible assets (excluding inventory, deferred income tax assets,
financial assets) that are subsequently measured using the cost model is determined by the following method:
It is judged on the balance sheet date whether there are signs of possible impairment of assets. If there are signs of
impairment, the Group will estimate its recoverable amount and conduct impairment test. For goodwill and the intangible
assets formed in the business combination 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.
The recoverable amount shall be determined according to the net amount of the fair value of an asset minus the disposal
expenses, and the current value of the expected future cash flow of the asset, whichever is higher. The Group estimates its
recoverable amount on the basis of a single asset; if it is difficult to estimate the recoverable amount of a single asset, the
recoverable amount of the asset group is determined based on the asset group to which the asset belongs. The recognition
of an asset group shall base on whether the main cash inflow generated by the asset group is independent of those
generated by other assets or other group assets.
When the recoverable amount of an asset or asset group is lower than its book value, the Group writes down its book value
to the recoverable amount. The reduced amount is included in the current profit and loss, and the corresponding asset
impairment provision is made at the same time.
As far as goodwill impairment test is concerned, the carrying value of the goodwill formed by enterprise merger is
apportioned to the relevant asset group according to the reasonable method commencing from the date of acquisition; in
case it is difficult to be apportioned to the relevant asset group, it is apportioned to the combination of the relevant asset
groups. The relevant asset group or combination of asset groups are those which get benefit from the coordinative effect of
enterprise consolidation but should not be greater than the reporting segment determined by the Group.
During the impairment testing, in case there exists impairment evidence in the goodwill related asset group or combination
of asset groups, impairment testing should be first conducted on the asset group or combination of asset groups without
goodwill and the recoverable amount is calculated, and the corresponding impairment loss is recognized. Then conduct an
impairment test on the asset group or combination of asset groups that contains goodwill, and compare its book value with
the recoverable amount. If the recoverable amount is lower than the book value, confirm the impairment loss of goodwill.
The loss of asset impairment, once recognized, shall no longer be reversible in the future fiscal periods.
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32. Long term expenses to be apportioned
The long-term expenses to be apportioned incurred to the Group are priced at actual cost and amortized evenly over the
expected benefit period. For long-term expenses to be apportioned that cannot benefit the future accounting period, all the
amortized value is included in the current profit and loss.
33. Contract liabilities
The Group’s obligation to transfer goods or services to customers for consideration received or receivable from customers
is regarded as contract liabilities.
34. Payroll to Employees
(1) Accounting treatment of short term salaries
During the accounting period when the employees provide services, the Group recognizes the actual wages, bonuses,
medical insurance premiums, industrial injury insurance premiums, maternity insurance premiums and other social
insurance premiums and housing provident funds paid for the employees in accordance with the prescribed benchmarks
and proportions. Liabilities are included in the current profit and loss or the cost of related assets. If the liability is not
expected to be fully paid within twelve months after the end of the annual reporting period in which employees provide
related services, and the financial impact is significant, the liability will be measured at the discounted amount.
(2) Post-employment benefits
Post-employment benefits include defined contribution plan and defined benefit plan. Where, the defined contribution plan
refers to a post-employment benefit plan in which the enterprise no longer assumes further payment obligations after the
fixed fee is paid to an independent fund; the defined benefit plan refers to a post-employment benefit plan other than the
defined contribution plan.
Defined contribution plan
The defined contribution plans include basic pension insurance, unemployment insurance, enterprise annuity plans, etc.
In addition to basic pension insurance, the Group establishes an enterprise annuity plan ("annuity plan") in accordance with
the relevant policies of the national enterprise annuity system, and employees can participate in the annuity plan voluntarily.
Apart from this, the Group has no other major employee social security commitments.
During the accounting period in which the employees provide services, the amount of the deposit payable calculated
according to the defined contribution plan is recognized as a liability and included in the current profit and loss or the cost of
related assets.
Defined benefit plan
For a defined benefit plan, an independent actuary performs actuarial valuation on the annual balance sheet date, and uses
the expected cumulative benefit unit method to determine the cost of providing benefits. The employee compensation cost
caused by the defined benefit plan of the Group includes the following components：
①Service costs, including current service costs, past service costs, and settlement gains or losses. Where, the current
service cost refers to the increase in the present value of the defined benefit plan obligations caused by the employee's
current provision of services; the past service cost refers to the increase or decrease of the present value of the obligation
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of the defined benefit plan related to employee services in the previous period caused by the modification of the defined
benefit plan.
② The net interest of the net liabilities or net assets of the defined benefit plan includes the interest income of the plan
assets, the interest expense of the defined benefit plan obligations, and the interest affected by the asset ceiling.
③ Movement of the net liabilities or net assets re-measured for setting the beneficial plan
Unless other accounting standards require or allow the cost of employee benefits to be included in the cost of assets, the
Group will include the above items ① and ② in the current profit and loss;item ③ is included in other comprehensive
income and will not be transferred back to profit or loss in the subsequent accounting period. When the original defined
benefit plan is terminated, the part originally included in other comprehensive income will be carried forward to the retained
earnings within the scope of equity.
(3) Dismissal welfare
If the Group provides dismissal benefits to employees, the employee compensation liabilities arising from the dismissal
benefits is recognized at the earlier of the following two, and is included in the current profit and loss; when the Group
cannot unilaterally withdraw the dismissal benefits provided due to the termination of the labor relationship plan or reduction
proposal; when the Group confirms the costs or expenses related to the reorganization involving the payment of termination
benefits.
If an employee’s internal retirement plan is implemented, the economic compensation before the official retirement date
refers to the dismissal benefit. From the day when the employee ceases to provide services to the normal retirement day,
the wages and social insurance premiums paid for early retiring employees are included in the current profit and loss.
Economic compensation after the official retirement date (such as regular old-age pension) shall be treated as
post-employment benefits.
(4) Other long term employees' welfare
Other long-term employee benefits provided by the Group to employees that meet the conditions of the defined contribution
plan shall be dealt with in accordance with the above-mentioned relevant provisions on the defined contribution plan. Those
that meet the defined benefit plan shall be dealt with in accordance with the above-mentioned relevant regulations on
defined benefit plans, but the “changes in the remeasured net liabilities or net assets of the defined benefit plan” in the
relevant employee compensation costs shall be included in the current profit and loss or related cost of assets.
35. Lease liabilities
At the beginning of the lease term, the Company recognizes the present value of the outstanding lease payments as lease
liabilities with short-term leases and leases of low-value assets exclusive. When calculating the present value of lease
payments, the Company uses the interest rate implicit in the lease as the discount rate; if the interest rate implicit in the
lease cannot be determined, the lessee’s incremental borrowing interest rate is used as the discount rate. The Company
calculates the interest expense of the lease liability during each period of the lease term in accordance with a fixed periodic
interest rate, and includes it in the current profit and loss, unless otherwise specified in the cost of related assets. Variable
lease payments that are not included in the measurement of lease liabilities are included in the current profit and loss when
they actually occur, unless otherwise specified in the cost of related assets.
After the starting date of the lease term, when the actual fixed payment changes, the expected amount payable of the
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guarantee residual value changes, the index or ratio used to determine the lease payment changes, the purchase option,
the renewal option, or the evaluation of the termination option when the result or actual exercise situation changes, the
Company remeasures the lease liability according to the present value of the lease payment after the change.
36. Predicted liabilities
If the obligations related to the contingencies meet the following conditions at the same time, the Group shall recognize
them as estimated liabilities:
(1) This obligation is the current obligation assumed by the Group;
(2)The performance of this obligation is likely to cause economic benefits to flow out of the Group;
(3) The amount of this obligation can be measured reliably.
The estimated liabilities are initially measured in accordance with the best estimate of the expenditure required to perform
the relevant current obligations, and comprehensively consider factors such as risks, uncertainties and time value of money
related to contingencies. If the time value of money has a significant impact, the best estimate is determined by discounting
the relevant future cash outflows. The Group reviews the book value of estimated liabilities on the balance sheet date and
adjusts the book value to reflect the current best estimate.
If all or part of the expenses required to settle the confirmed estimated liabilities are expected to be compensated by a third
party or other parties, the compensation amount can only be separately confirmed as an asset when it is basically certain
that it can be received. The recognized compensation amount does not exceed the book value of the recognized liability.
37. Share-based payment
(1) Varieties of Share-based Payment
The Group classifies share-based payments into equity-settled share-based payments and cash-settled share-based
payments.
(2) Method for determining the fair value of equity instruments
The Group determines the fair value of the granted equity instruments such as options that exist in an active market based
on the quoted prices in the active market. For equity instruments such as options for which there is no active market, the fair
value of the equity instruments is determined using option pricing model. The selected option pricing model considers the
following factors: A, the exercise price of the option; B, the validity period of the option; C, the current price of the underlying
stock; D, the expected volatility of the stock price; E, the expected dividend of the stock; F, risk-free interest rate in the
validity period of the option.
(3) Basis for confirming the best estimate of exercisable equity instruments
On each balance sheet day during the westing period, the Group 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. On the vesting date, the final estimated
number of vesting equity instruments should be consistent with the actual vesting number.
(4) Relevant accounting treatment for implementation, amendment or termination of the share-based payment plan
Equity-settled share-based payments are measured at the fair value of the equity instruments granted to employees. If the
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right can be exercised immediately after the grant, the fair value of the equity instrument shall be included in the relevant
costs or expenses on the date of grant, and the capital reserve shall be increased accordingly. If the right is exercised after
the completion of the waiting period services or the achievement of the specified performance conditions, on each balance
sheet date during the waiting period, based on the best estimate of the number of exerciseable equity instruments, the fair
value of the equity instruments is granted on the basis of value, including the services obtained in the current period into
related costs or expenses and capital reserves. No adjustment will be made to the recognized related costs or expenses
and the total owner's equity after the vesting date.
The cash-settled share-based payment is measured at the fair value of the liabilities assumed by the Group determined and
based on shares and other equity instruments. If the right can be exercised immediately after the grant, the fair value of the
liabilities assumed by the Group shall be included in the relevant costs or expenses on the date of grant, and the liabilities
shall be increased accordingly. Cash-settled share-based payments that can only be exercised after the completion of the
waiting period services or the specified performance conditions are exercised. At each balance sheet date during the
waiting period, the best estimate of the exercise is based on the fair value of the liabilities assumed by the Group, including
the services obtained in the current period as costs or expenses and corresponding liabilities. 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.
When the Group makes amendments to the share-based payment plan, if the amendment increases the fair value of the
equity instruments granted, the increase in the services obtained shall be correspondingly confirmed according to the
increase in the fair value of the equity instruments; if the modification increases the number of equity instruments granted,
the fair value of the increased equity instruments shall be correspondingly recognized as an increase in services obtained.
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 in amendment of the terms and conditions of the share
payment plan , the service obtained will continue to undergo accounting treatment, unless the Group cancels part or all of
the granted equity instruments.
If the Group cancels the granted equity instrument (except for those canceled due to non-market conditions that do not
meet the exercisable conditions) during the vesting period, the Group 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 Group treats it as a cancellation of the granted equity instrument.
38. Other financial instruments, such as preferred shares, perpetual liabilities, etc.
Inapplicable
39. Revenue
Accounting policies used in revenue recognition and measurement
(1) General Principle
The Group has fulfilled the performance obligations in the contract, that is, revenue is recognized when the customer
obtains control of the relevant goods or services.
If the contract contains two or more performance obligations, the Group shall allocate the transaction price to each
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individual performance obligation in accordance with the relative proportion of the stand-alone selling price of the goods or
services promised by each individual performance obligation on the date of the contract. The transaction price of each
individual performance obligation measures revenue.
When one of the following conditions is met, the Group is to perform its performance obligations within a certain period of
time; otherwise, it is to perform its performance obligations at a certain point in time:
① Customers obtain and consume the economic benefits brought by the Group's performance at the same time as the
Group's performance.
② Customers can control the products under construction during the performance of the Group.
③The goods produced during the performance of the Group are irreplaceable in usage, and the Group has the right to
receive payment for the cumulative performance portion of the contract that has been completed so far during the entire
contract period.
For performance obligations performed within a certain period of time, the Group recognizes revenue in accordance with
the performance progress during that period. When the performance progress cannot be reasonably determined, if the cost
incurred by the Group is expected to be compensated, the revenue shall be recognized according to the amount of the cost
incurred until the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Group recognizes revenue at the point when the
customer obtains control of the relevant goods or services. When determining whether a customer has obtained control of
goods or services, the Group may consider the following signs:
①The Group enjoys the current right of payment for the goods or services, that is, the customer has the current payment
obligation for the goods.
②The Group has transferred the legal ownership of the product to the customer, that is, the customer has the legal
ownership of the product.
③ The Group has transferred the goods in kind to the customer, that is, the customer has taken possession of the goods in
kind.
④The Group has transferred the main risks and rewards of the ownership of the goods to the customers, that is, the
customers have obtained the main risks and rewards of the ownership of the goods.
⑤The customer has accepted the goods or services.
⑥Other signs that the customer has obtained control of the product.
The Group has transferred goods or services to customers and has the right to receive consideration (and the right
depends on other factors other than the passage of time) as contract assets, and provision for impairment of contract
assets is made on the basis of expected credit losses. The Group's unconditional (only depending on the passage of time)
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right to collect consideration from customers is presented as accounts receivable. The Group’s obligation to transfer goods
or services to customers for consideration received or receivable from customers is regarded as contract liabilities.
The contract assets and contract liabilities under the same contract are presented in net amount. If the net amount is the
debit balance, it shall be listed in the item of "contract assets" or "other non-current assets" according to its liquidity; If the
net amount is the credit balance, it shall be presented in the “contract liabilities” or “other non-current liabilities”
according to its liquidity.
Differences in accounting policies for revenue recognition caused by the adoption of different business models for similar
businesses
① General sales
When the goods are dispatched, the receipt of the customer's receipt is obtained, and according to the sales contract
signed by both parties, it is confirmed that the control of the goods has been transferred to the purchaser, and the sales
revenue is recognized.
② Direct sales
a. Offline retail: Under the direct sales business model, sales revenue is recognized when the goods is sent out, the sales
payment is received and the products are delivered to the customer.
b. Online retail: Under the e-commerce platform sales model, sales revenue is recognized when products are delivered and
signed for reception by customers.
③ Mall Associates
Under the joint sales model, the Group recognizes revenue when products are delivered to customers, shop assistants
issue small invoices to retail customers, customers accept acceptance and shopping malls collect payments.
④ Consignment sales
Under the consignment sales model, the Group recognizes revenue when it receives the sales list from the consignee and
confirms that the control over the ownership of the goods has been transferred to the purchaser.
⑤ Consignment Sales
Under the consignment sales model, when the Group delivers external consignment products to customers and confirms
that the control over the ownership of the goods has been transferred to the purchaser, the Group recognizes revenue
based on the net method.
40. Government subsidies
Government subsidies are recognized when they meet the conditions attached to the government subsidies and can be
received.
Government subsidies for monetary assets are measured according to the amount received or receivable. Government
subsidies for non-monetary assets shall be measured at fair value; if the fair value cannot be obtained reliably, it shall be
measured at a nominal amount of CNY 1.
Government subsidies related to assets refer to government subsidies obtained by the Group for purchase and
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construction or to form long-term assets in other ways; otherwise, they are government subsidies related to income.
If the government documents do not clearly specify the subsidy object, and can form long-term assets, the part of the
government subsidy corresponding to the asset value shall be regarded as the government subsidy related to the assets,
and the remaining part shall be regarded as the government subsidy related to the income; if it is difficult to distinguish, the
government subsidy as a whole is regarded as the government subsidy related to income.
The government subsidies related to assets, which offset the book value of related assets, or are recognized as deferred
income, shall be included in profit and loss in installments according to a reasonable and systematic method during the
useful life of the related assets. Government subsidies related to income, if used to compensate related costs or losses that
have occurred, are included in the current profit and loss or offset related costs; if they are used to compensate for related
costs or losses in subsequent periods, they are included in deferred income. In the period when the relevant costs or losses
are recognized, they are included in the current profits and losses or offset the relevant costs. A government subsidy
measured according to the nominal amount is directly recorded into the current profit and loss. The Group adopts the same
method to deal with the same or similar government subsidy business.
A government subsidy related to the daily activities is included in other income or offset against related costs and expenses
according to the nature of economic business. Government subsidies not related to daily activities are included in
non-operating income and expenditure.
When the confirmed government subsidy needs to be returned, if the book value of the relevant asset is deducted at the
time of initial confirmation, the book value of the asset is adjusted; if there exists a relevant deferred income balance, the
carrying balance of the relevant deferred income should be written off, and the excess part is recorded into the current profit
and loss; under other circumstances, it is directly recorded into the current profits and losses.
For the obtained policy-based preferential loan interest discount, if the finance allocates the interest-subsidized funds to the
lending bank, the actual loan amount received is used as the entry value of the loan, and the borrowing cost is calculated
according to the loan principal and the policy preferential interest rate. If the public finance directly allocates the interest
discount fund to the Group, the interest discount will write down the borrowing cost.
41. Deferred income tax asset/deferred income tax liability
Income tax includes the current income tax and deferred income tax. Except for the adjusted goodwill arising from the
business combination, or the deferred income tax related to the transaction or event directly included in the owner's equity,
they are all included in the current profit and loss as the income tax expense.
The Group adopts the balance sheet debt method to recognize the deferred income tax based on the temporary difference
between the book value of assets and liabilities on the balance sheet date and the tax base.
All taxable temporary differences are recognized as related deferred income tax liabilities, unless the taxable temporary
differences are generated in the following transactions:
(1) The initial recognition of goodwill, or the initial recognition of assets or liabilities arising from a transaction with the
following characteristics: the transaction is not a business combination, and the transaction does not affect accounting
profits nor taxable income;
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(2) For taxable temporary differences related to investments in subsidiaries, joint ventures and associates, the time for the
reversal of the temporary differences can be controlled and the temporary differences may not be reversed in the
foreseeable future.
For offsetable temporary differences, offsetable losses that can be carried forward to future years, and tax deductions, the
Group is likely to obtain deductions for offsetable temporary differences, offsetable losses and tax deductions with the
limitation of future taxable income, and the resulting deferred income tax assets are recognized, unless the offsetable
temporary difference is generated in the following transactions:
(1) The transaction is not a business combination, and the transaction does not affect accounting profits nor taxable
income;
(2) For offsetable temporary differences related to investments in subsidiaries, joint ventures and associates, and meet the
following conditions at the same time, confirm the corresponding deferred income tax assets: temporary differences are
likely to be reversed in the foreseeable future, and the taxable income that can be used to deduct temporary differences is
likely to be obtained in the future.
On the balance sheet date, the Group measures the deferred income tax assets and deferred income tax liabilities at the
tax rate applicable to the period during which the asset is expected to be recovered or the liability is settled, and reflects the
income tax impact of the way the asset is expected to be recovered or the liability is settled on the balance sheet date.
The carrying amount of deferred income tax assets shall be reviewed at each balance sheet date. 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.
42. Lease
(1) Accounting process for operating lease
Original Lease Standard
When the Company is a lessee, during each period of lease term, the rent is included in the relevant asset cost or
recognized as the current profit and loss according to the straight-line method, and the initial direct expenses incurred are
directly included in the current profit and loss. Contingent rental is recorded in the current profit and loss when it actually
incurs.
When the Company is a lessor, during each period of lease term, the rent is recognized as the current profit and loss
according to the straight-line method. The initial direct costs incurred are directly included in the current profit and loss
except for the larger amount which is capitalized and included in the profit and loss in the very period. Contingent rental is
recorded in the current profit and loss when it actually incurs.
The new standards for lease (commencing from January 2, 2021)
1.Lessee
When the Company is a lessee, at the beginning of the lease period, in addition to short-term leases and low-value asset
leases subject to simplified treatment, the Company recognizes the lease as the use right asset and lease liability.
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After the starting date of the lease term, the Company adopts the cost model for subsequent measurement of the asset with
use right. Depreciation of assets with use right is provided in accordance with the provisions concerning depreciation of the
“Accounting Standards for Enterprises No. 4—Fixed Assets”. If the lessee can be reasonably determined to obtain the
ownership of the leased asset at the expiration of the lease term, depreciation should be provided during the remaining
useful life of the leased asset. If it is impossible to reasonably determine that the ownership of the leased asset can be
obtained when the lease term expires, depreciation should be provided during the shorter period of the lease term and the
remaining useful life of the leased asset. The Company determines whether an asset with use right is impaired in
accordance with the “Accounting Standards for Enterprises No. 8-Asset Impairment” and conducts accounting treatment
of the identified impairment loss.
The Company calculates the interest expense of the lease liability during each period of the lease term in accordance with a
fixed periodic interest rate, and includes it in the current profit and loss. That which should be included in the relevant asset
cost in accordance with other standards, such as “Accounting Standards for Enterprises No. 17-Borrowing Costs” should
be included in the cost of relevant assets, follow those provisions.
For short-term leases and low-value asset leases, the Company chooses the assets and lease liabilities with the use right
not recognized and records the lease payment amount of the short-term leases and low-value asset leases in the relevant
asset cost or current profit and loss according to the straight-line basis during different periods of the lease term.
2.Lessor
As the lessor, the Company adopts the straight-line method during each period of the lease term to recognize the lease
receipts from operating leases as rental income. Capitalize the initial direct costs incurred in relation to operating leases,
amortize them on the same basis as the confirmation of rental income during the lease term, and include them in the
current profit and loss periodically.
For fixed assets in operating lease assets, the Company should use the depreciation policy for similar assets for
depreciation; for other operating lease assets, it shall use systematic and reasonable method for amortization in
accordance with the applicable accounting standards for enterprises for the assets. The Company determines whether an
asset with use right is impaired in accordance with the “Accounting Standards for Enterprises No. 8-Asset Impairment”
and conducts accounting treatment of the identified impairment loss.
(2) Accounting treatment method for finance lease
Original Lease Standard
As a leasee, at the starting date of lease period, the Company recognizes 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; the initial direct expenses incurred is recorded in the value of lease assets. In each period of the lease
term, the actual interest rate method is used to calculate and recognize the current financing costs.
As a leasor, at the starting 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. In
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
each period of the lease term, the actual interest rate method is used to calculate and recognize the current financing
income.
The new standards for lease (commencing from January 2, 2021)
1.Lessee
When the Company is a lessee, at the beginning of the lease period, in addition to short-term leases and low-value asset
leases subject to simplified treatment, the Company recognizes the lease as the use right asset and lease liability.
After the starting date of the lease term, the Company adopts the cost model for subsequent measurement of the asset with
use right. Depreciation of assets with use right is provided in accordance with the provisions concerning depreciation of the
“Accounting Standards for Enterprises No. 4—Fixed Assets”. If the lessee can be reasonably determined to obtain the
ownership of the leased asset at the expiration of the lease term, depreciation should be provided during the remaining
useful life of the leased asset. If it is impossible to reasonably determine that the ownership of the leased asset can be
obtained when the lease term expires, depreciation should be provided during the shorter period of the lease term and the
remaining useful life of the leased asset. The Company determines whether an asset with use right is impaired in
accordance with the “Accounting Standards for Enterprises No. 8-Asset Impairment” and conducts accounting treatment
of the identified impairment loss.
The Company calculates the interest expense of the lease liability during each period of the lease term in accordance with a
fixed periodic interest rate, and includes it in the current profit and loss. That which should be included in the relevant asset
cost in accordance with other standards, such as “Accounting Standards for Enterprises No. 17-Borrowing Costs” should
be included in the cost of relevant assets, follow those provisions.
For short-term leases and low-value asset leases, the Company chooses the assets and lease liabilities with the use right
not recognized and records the lease payment amount of the short-term leases and low-value asset leases in the relevant
asset cost or current profit and loss according to the straight-line basis during different periods of the lease term.
2.Lessor
As a lessor, the Company recognizes the receivable funds for financial leasing at the starting date of the lease period,
terminates the recognition of the financial lease asset, and calculates and recognizes the interest income during each
period of the lease term according to a fixed periodic interest rate.
43. Other important accounting policy and accounting estimate
Repurchase of shares
The shares repurchased by the Company before cancellation or transfer of the shares are managed as treasury stock and
all the payments for the repurchased shares are converted into the cost of treasury stock. The consideration and
transaction costs paid in repurchase of shares reduce the owner’s equity. When repurchasing, transferring or canceling the
Company’s shares, no profit or loss is recognized.
When transferring treasury shares, the difference between the actual amount received and the book value of the treasury
shares is included in the capital reserve. If the capital reserve is insufficient to offset, the surplus reserve and retained
earnings shall be used for offsetting. For the cancellation of treasury shares, the share capital shall be reduced according to
the book value of the shares and the number of shares canceled, and the capital reserve shall be offset based on the
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
difference between the book balance and the book value of the canceled treasury shares. If the capital reserve is
insufficient to offset, the surplus reserve and retained earnings shall be used for offsetting.
44. Changes in significant accounting policies and accounting estimates
(1) Change in significant accounting policies
Contents and causes of the change in
Examination and approval procedures Remarks
accounting policies
On December 7, 2018, the Ministry of Finance
issued the "Notice on Revising and Issuing the
"Accounting Standards for Enterprises No. Reviewed any approved at the 27th session of About the affected items and amount of the
21-Leases" (Cai Kuai [2018] No. 35) the Ninth Board of Directors. statements, refer to (3) of this section.
(hereinafter referred to as the "New Lease
Standards")
In accordance with the standard convergence provisions, the Company retrospectively adjusted the retained earnings at
the beginning of 2021 and the amount of other related items in the financial statements based on the difference between
the new lease standard and the current lease standard on the date of first implementation, and no adjustment is made to
the comparable period information.
(2) Change in significant accounting estimates
Inapplicable
(3) 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
Applicable
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
Settlement reserve
Inter-bank lending
Transactional financial assets
Derivative financial assets
Notes receivable 48,192,442.15 48,192,442.15
Accounts receivable 475,598,684.88 475,598,684.88
Financing with accounts
receivable
Advance payment 16,612,773.76 16,612,773.76
Receivable premium
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Reinsurance accounts
receivable
Reserve for reinsurance contract
receivable
Other receivables 52,902,779.63 52,902,779.63
Including: Interest receivable
Dividends receivable
Redemptory monetary capital for
sale
Inventories 1,931,780,185.85 1,931,780,185.85
Contract assets
Held-for-sale assets
Non-current assets due within a
year
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:
Loan issuing and advance in
cash
Equity investment
Other equity investment
21. Long term accounts
receivable
Long-term equity investments 51,400,665.92 51,400,665.92
Investment in other equity
85,000.00 85,000.00
instruments
Other non-current financial
assets
Investment-oriented real estate 398,086,447.78 398,086,447.78
Fixed assets 352,734,280.76 352,734,280.76
Construction-in-progress
Productive biological asset
Oil and Gas Assets
Use right assets 170,138,212.72 170,138,212.72
Intangible assets 37,859,316.51 37,859,316.51
Development expenses
Goodwill
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 1,234,771,619.16 170,138,212.72
Total assets 4,018,712,700.18 4,186,712,272.19 167,999,572.01
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Current liabilities:
Short term borrowings 542,673,278.09 542,673,278.09
Borrowings from central bank
Loans from other banks
Transactional financial liabilities
Derivative financial liabilities
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
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
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
Including: interest payable
Dividends payable 1,639,513.77 1,639,513.77
Service charge and commission
payable
Payable reinsurance
Held-for-sale liabilities
Non-current liabilities due within
370,030.00 96,546,555.48 96,176,525.48
a year
Other current liabilities 2,299,755.09 2,299,755.09
Total current liabilities 1,208,697,517.77 1,304,874,043.25 96,176,525.48
Non-current liabilities:
Reserve for insurance contract
Long-term borrowings 4,070,330.00 4,070,330.00
Bonds payable
Including: preferred shares
Perpetual bond
Lease liabilities 76,142,342.03 76,142,342.03
Long-term accounts payable
Long term payroll payable to the
employees
Estimated liabilities
Deferred income 2,916,346.43 2,916,346.43
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Deferred income tax liability 3,067,834.55 3,067,834.55
Other non-current liabilities
Total non-current liabilities 10,054,510.98 86,196,853.01 76,142,342.03
Total liabilities 1,218,752,028.75 1,391,070,896.26 172,318,867.51
Owner’s equity:
Capital stock 428,091,881.00 428,091,881.00
Other equity instruments
Including: preferred shares
Perpetual bond
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 income 976,871.41 976,871.41
Special reserve
Surplus Reserve 246,531,866.87 246,531,866.87
Provision for general risks
Retained earnings 1,164,490,911.51 1,160,171,616.01 -4,319,295.50
Total owners’ equity attributable to
2,799,948,388.09 2,795,629,092.59 -4,319,295.50
the parent company
Minority shareholders’ equity 12,283.34 12,283.34
Total owner’s equity 2,799,960,671.43 2,795,641,375.93 -4,319,295.50
Total liabilities and owners’ equity 4,018,712,700.18 4,186,712,272.19 167,999,572.01
Note to the Adjustment
The Company has implemented the new lease standards for the first time since January 1, 2021. In 2021, in accordance
with the requirements of the new lease standards, the opening balance of lease-related assets has been adjusted to the
asset of use right and lease liabilities.
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
Transactional financial assets
Derivative financial assets
Notes receivable
Accounts receivable 1,464,798.79 1,464,798.79
Financing with accounts
receivable
Advance payment
Other receivables 621,512,680.69 621,512,680.69
Including: Interest receivable
Dividends receivable
Inventories
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Contract assets
Held-for-sale assets
Non-current assets due within a
year
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:
Equity investment
Other equity investment
Long term accounts receivable
Long-term equity investments 1,529,415,188.28 1,529,415,188.28
Investment in other equity
85,000.00 85,000.00
instruments
Other non-current financial
assets
Investment-oriented real estate 323,296,494.84 323,296,494.84
Fixed assets 224,709,747.39 224,709,747.39
Construction-in-progress
Productive biological asset
Oil and Gas Assets
Use right assets
Intangible assets 27,347,950.13 27,347,950.13
Development expenses
Goodwill
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
Transactional financial liabilities
Derivative financial liabilities
Notes payable
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
Including: interest payable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Dividends payable 1,639,513.77 1,639,513.77
Held-for-sale liabilities
Non-current liabilities due within
a year
Other current liabilities 2,264.15 2,264.15
Total current liabilities 680,798,019.12 680,798,019.12
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 683,175,737.47 683,175,737.47
Owner’s equity:
Capital stock 428,091,881.00 428,091,881.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital reserve 1,027,145,928.88 1,027,145,928.88
Less: shares in stock 61,633,530.48 61,633,530.48
Other comprehensive income
Special reserve
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’ equity 3,045,376,838.94 3,045,376,838.94
(4) Note to the retroactive adjustment of the previous comparative data according to the new standards for lease
initially implemented from 2021
Inapplicable
45. Others
Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
VI. Taxation
1. Types of major taxes and tax rates
Type of taxes Tax basis Tax rates
Value-added tax Taxable income 13%, 9%, 6% and 5%
Consumption tax Taxable income 20%
Urban maintenance and construction tax Amount of turnover tax payable 7% and 5%
Business income tax Taxable income amount For the detail, refer to the following table
In case there exist taxpayers subject to different corporate income tax rates, disclose the information.
Taxpayers Income tax rates
The Company 25.00%
Shenzhen Harmony World Watches Center Co., Ltd. (HARMONY) 25.00%
Shenzhen FIYTA Precision Technology Co., Ltd. (Precision Technology Co.) 15.00%
FIYTA (Hong Kong) Limited (FIYTA HK) 16.50%
Shenzhen FIYTA Technology Development Co., Ltd. (Technology Development Co. ) 15.00%
Shiyuehui Boutique (Shenzhen) Co., Ltd. (Shiyuehui) 25.00%
Shenzhen Harmony E-Commerce Limited (Harmony E-Commerce) 20.00%
Emile Chouriet (Shenzhen) Limited (Emile Choureit Shenzhen) 25.00%
FIYTA Sales Co., Ltd. (The Sales Co.) 25.00%
Liaoning Hengdarui Commerce & Trade Co., Ltd. (Hengdarui) 25.00%
Montres Chouriet SA (the Swiss Co.) 30.00%
Shenzhen XUNHANG Precision Technology Co., Ltd. (XUNHANG Co.) 25.00%
Harmony World Watches Center (Hainan) Co., Ltd. (HARMONY Hainan) 15.00%
2. Tax Preferences
(1)According to Notice of the Ministry of Finance and the State Administration of Taxation on Improving the Policies for the
Weighted Pre-tax Deduction of Research and Development Expenses (Notice of the Ministry of Finance and the State
Administration of Taxation 2021 No. 13), the R & D expenses arising from development of new technology, new products
and new process in Precision Technology and Technology Development which have not formed intangible assets and
counted to the current profit and loss shall be subject to weighted pre-tax deduction by 100% of the amount actually
incurred commencing from January 1, 2021 based on the actual deduction according to the regulations.
(2) Precision Technology Co. and Technology Development Co. may enjoy the “income tax rate exclusion of high-tech
enterprises key supported by the state”.
(3) In accordance with the relevant provisions of the Announcement of the Ministry of Finance and the State Taxation
Administration on Matters Concerning the Implementation of Preferential Income Tax Policies Supporting the Development
of Small Low-Profit Enterprises and Individual Industrial and Commercial Households (Announcement of of the Ministry of
Finance and the State Administration of Taxation 2021 No. 12), for the part of small and low-profit enterprises (e-commerce
companies) whose annual taxable income does not exceed CNY 1 million, in addition to the preferential policy as specified
in Article 2 of the Notice of the Ministry of Finance and the State Administration of Taxation on Implementing the Inclusive
Tax Deduction and Exemption Policies for Micro and Small Enterprises (CAI SHUI (2019)No.13), the business income tax
shall be paid at the further reduced rate of 50%.
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
(4) In accordance with Notice of the Ministry of Finance and the State Administration of Taxation on Extending the Loss
Carryover Period for High and New Technology Enterprises and Small and Medium-Sized Technological Enterprises (CAI
SHUI (2018)No.76), commencing from January 1, 2018, the unrecovered losses incurred in the 5 fiscal years before being
qualified for becoming a high-tech enterprise are allowed to be carried forward to make up for subsequent years, and the
longest carry-forward period has been extended from 5 years to 10 years.
(5)According to the Circular of the Ministry of Finance and the State Taxation Administration on Preferential Policies of
Income Tax on Enterprises in Hainan Free Trade Port (Cai Shui [2020] No.31),HARMONY Hainan is qualified for the
relevant requirements and may enjoy the preferential business income tax at the rate of 15%.
3. Others
Inapplicable
VII. Notes to items of consolidated financial statements
1. Monetary capital
In CNY
Items Ending balance Opening balance
Cash in stock 119,448.51 183,759.72
Bank deposit 214,931,355.40 346,055,209.29
Other Monetary Funds 19,789,352.78 6,818,316.70
Total 234,840,156.69 353,057,285.71
Including: total amount deposited
5,061,912.69 3,412,028.94
overseas
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 13,039,172.34 16,813,464.36
Trade acceptance 41,482,676.28 31,378,977.79
Total 54,521,848.62 48,192,442.15
In CNY
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Categories Book Book
Provision Provision
Amount Proportion Amount value Amount Proportion Amount value
proportion proportion
in which
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Notes receivable for
which bad debt reserve 56,657,79 2,135,946 54,521,84 49,843,96 1,651,525.1 48,192,44
100.00% 3.77% 100.00% 3.31%
has been provided 5.58 .96 8.62 7.32 7 2.15
based on portfolios
Where
13,039,17 13,039,17 16,813,46 16,813,46
Bank acceptance 23.01% 33.73%
2.34 2.34 4.36 4.36
43,618,62 2,135,946 41,482,67 33,030,50 1,651,525.1 31,378,97
Trade acceptance 76.99% 4.90% 66.27% 5.00%
3.24 .96 6.28 2.96 7 7.79
56,657,79 2,135,946 54,521,84 49,843,96 1,651,525.1 48,192,44
Total 100.00% 3.77% 100.00% 3.31%
5.58 .96 8.62 7.32 7 2.15
Individual provision for bad and doubtful debts:
Inapplicable
Provision for bad and doubtful debts based on portfolio: trade acceptance
In CNY
Ending balance
Name
Book balance Bad debt reserve Provision proportion
Trade acceptance 43,618,623.24 2,135,946.96 4.90%
Total 43,618,623.24 2,135,946.96 --
Note to the basis for determining the combination:
Inapplicable
Provision for bad and doubtful debts based on portfolio: Bank acceptance
In CNY
Ending balance
Name
Book balance Bad debt reserve Provision proportion
Bank acceptance 13,039,172.34
Total 13,039,172.34 --
Note to the basis for determining the combination:
Inapplicable
Provision for bad and doubtful debts based on portfolio:
Inapplicable
Provision for bad and doubtful debts based on portfolio:
Inapplicable
If the provision for bad debts of notes receivable is accrued in accordance with the general expected credit loss model,
please refer to the disclosure of other receivables to disclose the relevant information of the provision for bad debts:
Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
(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 Ending balance
Provision Written-off Others
or reversed
Notes receivable 1,651,525.17 484,421.79 2,135,946.96
Total 1,651,525.17 484,421.79 2,135,946.96
Where the significant amount of the reserve for bad debt recovered or reversed:
Inapplicable
(3) Notes receivable already pledged by the Company at the end of the reporting period
Inapplicable
(4) Endorsed or discounted notes receivable at the end of the reporting period, but not yet due on the balance
sheet date
In CNY
Amount involved in the termination of Amount without termination of recognition at
Items
recognition at the end of the reporting period the end of the reporting period
Trade acceptance 0 7,013,609.04
Total 0 7,013,609.04
(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 Book
Provision Provision Book value
Amount Proportion Amount value Amount Proportion Amount
proportion proportion
Accounts receivable for
which bad debt reserve
45,854,91 20,784,77 25,070,14 21,208,44 19,133,97
has been provided 8.68% 45.33% 4.16% 90.22% 2,074,471.70
8.07 0.01 8.06 7.13 5.43
based on individual
items
Where
Accounts receivable 45,854,91 8.68% 20,784,77 45.33% 25,070,14 21,208,44 4.16% 19,133,97 90.22% 2,074,471.70
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
from other customers 8.07 0.01 8.06 7.13 5.43
Accounts receivable for
which bad debt reserve 482,713,8 14,433,36 468,280,5 488,240,1 14,715,95
91.32% 2.99% 95.84% 3.01% 473,524,213.18
has been provided 96.57 7.37 29.20 64.32 1.14
based on portfolios
Where
Accounts receivable 482,713,8 14,433,36 468,280,5 488,240,1 14,715,95
91.32% 2.99% 95.84% 3.01% 473,524,213.18
from other customers 96.57 7.37 29.20 64.32 1.14
528,568,8 35,218,13 493,350,6 509,448,6 33,849,92
Total 100.00% 6.66% 100.00% 6.64% 475,598,684.88
14.64 7.38 77.26 11.45 6.57
Bad debt reserve provided based on individual items: Accounts receivable from other customers
In CNY
Ending balance
Name
Book balance Bad debt reserve Provision proportion Provision reason
Accounts receivable from Small possibility of recovery
45,854,918.07 20,784,770.01 45.33%
other customers as predicted
Total 45,854,918.07 20,784,770.01 -- --
Individual provision for bad and doubtful debts:
Inapplicable
Bad debt reserve provided based on portfolio: Accounts receivable from other customers
In CNY
Ending balance
Name
Book balance Bad debt reserve Provision proportion
Accounts receivable from
482,713,896.57 14,433,367.37 2.99%
other customers
Total 482,713,896.57 14,433,367.37 --
Note to the basis for determining the combination:
Inapplicable
Provision for bad and doubtful debts based on portfolio:
Inapplicable
If the provision for bad debts of accounts receivable is accrued in accordance with the general expected credit loss model,
please refer to the disclosure of other receivables to disclose the relevant information of the provision for bad debts:
Inapplicable
Disclosed based on aging
In CNY
Aging Ending balance
Within 1 year (with 1 year inclusive) 505,202,937.24
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
1 to 2 years 10,502,650.24
2 to 3 years 6,741,191.06
Over 3 years 6,122,036.10
3 to 4 years 3,888,023.85
4 to 5 years 953,707.55
Over 5 years 1,280,304.70
Total 528,568,814.64
(2) Bad debt provision accrual, received or reversed in the reporting period
Provision for bad debt during the reporting period
In CNY
Amount of movement during the reporting period
Opening Amount
Categories Ending balance
balance Provision recovered or Written-off Others
reversed
Accounts
receivable from 33,849,926.57 2,347,869.39 976,332.27 0 -3,326.31 35,218,137.38
other customers
Total 33,849,926.57 2,347,869.39 976,332.27 0 -3,326.31 35,218,137.38
Where the significant amount of the reserve for bad debt recovered or reversed:
Inapplicable
(3) Accounts receivable actually written off in current period
Inapplicable
(4) Accounts receivable owed by the top five debtors based on the ending balance
In CNY
Ending balance of the Proportion in total ending Ending balance of the
Description of Unit
accounts receivable balance of accounts receivable provision for bad debts
Accounts receivable
owed by the top five
117,790,202.46 22.28% 4,178,394.78
customer debtors based
on the ending balance
Total 117,790,202.46 22.28%
(5) Account receivable with recognition terminated due to transfer of financial assets
Inapplicable
(6) Amount of assets and liabilities formed through transfer of long term account receivable and continuing to be
involved
Inapplicable
6. Financing with accounts receivable
Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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 17,014,006.71 100.00% 16,612,773.76 100.00%
Total 17,014,006.71 -- 16,612,773.76 --
Note to the reason why advance payments with an age exceeding 1 year and significant amount are not settled in time:
Inapplicable
(2) Advance payment to the top five payees of the ending balance collected based on the payees of the advance
payment
The total amount of advance payment to the top five payees of the ending balance collected based on the payees of the
advance payment was CNY 7,873,293.29, taking 46.28% of the toal ending balance of the advance payment.
(8) Other receivables
In CNY
Items Ending balance Opening balance
Other receivables 61,004,359.97 52,902,779.63
Total 61,004,359.97 52,902,779.63
(1) Interest receivable
1) Classification of interest receivable
Inapplicable
2) Significant overdue interest
Inapplicable
3) Provision for bad debts
Inapplicable
(2) Dividends receivable
1) Classification of dividends receivable
Inapplicable
2) Significant dividends receivable with age exceeding 1 year
Inapplicable
3) Provision for bad debts
Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
(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 5,304,012.62 2,438,803.09
Security deposit 50,542,710.78 45,981,846.00
Employees’ social security premium
494,186.13 792,711.42
reimbursed
Others 8,879,314.85 7,726,146.03
Total 65,220,224.38 56,939,506.54
2) Provision for bad debts
In CNY
Stage 1 Stage 2 Stage 3
Expected credit loss in Expected credit loss in
Expected credit
Bad debt reserve the whole duration (no the whole duration (credit Total
loss in future 12
credit impairment impairment already
months
incurred) incurred)
Balance as at January
2,369,057.01 1,667,669.90 4,036,726.91
1, 2021
Balance as at January
1, 2021 in the reporting —— —— —— ——
period
Provision in the
179,137.50 0 179,137.50
reporting period
Other changes -212.19 0 -212.19
Balance as at June 30,
2,548,194.51 1,667,669.90
2021
Provision for loss - Change of the book balance with significant amount during the reporting period
Inapplicable
Disclosed based on aging
In CNY
Aging Ending balance
Within 1 year (with 1 year inclusive) 63,765,972.60
1 to 2 years 865,591.15
2 to 3 years 595.63
Over 3 years 588,065.00
3 to 4 years 0.00
3 to 5 years 0.00
Over 5 years 588,065.00
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Total 65,220,224.38
3) Bad debt provision accrual, received or reversed in the reporting period
Provision for bad debt during the reporting period
In CNY
Amount of movement during the reporting period
Opening Amount
Categories Ending balance
balance Provision recovered or Written-off Others
reversed
Bad debt
4,036,726.91 218,513.64 39,163.95 -212.19 4,215,864.41
reserve
Total 4,036,726.91 218,513.64 39,163.95 -212.19 4,215,864.41
Where a significant amount of the reserve for bad debt recovered or reversed during the reporting period:
Inapplicable
4) Accounts receivable actually written off in the reporting period
Inapplicable
5) Accounts receivable owed by the top five debtors based on the ending balance
In CNY
Proportion in total Ending balance of
Description of Unit Nature of Payment Ending balance Aging ending balance of the provision for
other receivables bad debts
Accounts
receivable owed by
Collateral, deposit,
the top five debtors 11,736,193.18 Within 1 year 17.99% 586,809.66
etc.
based on the
ending balance
Total -- 11,736,193.18 -- 17.99% 586,809.66
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
Does the Company need to comply with the requirements on information disclosure for real estate industry
No
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
(1) Classification of inventories
In CNY
Ending balance Opening balance
Provision for Provision for
price falling of price falling of
inventory or inventory or
Items provision for provision for
Book balance Book value Book balance Book value
impairment of impairment of
contract contract
performance performance
costs costs
Raw materials 171,237,349.97 18,664,834.02 152,572,515.95 179,270,879.56 19,017,726.57 160,253,152.99
Products in
11,073,464.10 0 11,073,464.10 12,570,005.95 0 12,570,005.95
process
Commodities in 1,930,724,116.1 1,850,563,398.8 1,837,664,688.0 1,758,957,026.9
80,160,717.38 78,707,661.10
stock 9 1 1 1
2,113,034,930.2 2,014,209,378.8 2,029,505,573.5 1,931,780,185.8
Total 98,825,551.40 97,725,387.67
6 6 2 5
(2) Provision for price falling of inventory or provision for impairment of contract performance costs
In CNY
Increase in the reporting period Decrease in the reporting period
Opening
Items Reversal or Ending balance
balance Provision Others Others
write-off
Raw materials 19,017,726.57 0 237,447.08 115,445.47 18,664,834.02
Commodities in
78,707,661.10 1,463,809.76 0 10,753.48 80,160,717.38
stock
Total 97,725,387.67 1,463,809.76 237,447.08 126,198.95 98,825,551.40
(3) Note to the amount of capitalized borrowing costs involved in the ending balance of inventories
Inapplicable
(4) Description of the current amortization amount of contract performance costs
Inapplicable
10. Contract assets
Inapplicable
11. Held-for-sale assets
Inapplicable
12. Non-current assets due within a year
Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
13. Other current assets
In CNY
Items Ending balance Opening balance
Input VAT to be offset 37,488,179.03 59,218,711.69
Income tax paid in advance 11,464.27 25,684.51
Others 9,787,581.80 14,552,104.85
Total 47,287,225.10 73,796,501.05
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 Ending
Announce
Opening from equity Other Ending balance of
d for
balance Decrease investment comprehe Other Provision balance the
Investees Additional distributing
(book of recognized nsive equity for Others (book provision
investment cash
value) investment under income movement impairment value) for
dividend or
equity adjustment impairment
profit
method
I. Joint Venture
II. Associates
Shanghai
Watch
Industry 51,400,66 1,629,328. 53,029,99
Co., Ltd. 5.92 24 4.16
(Shanghai
Watch)
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
51,400,66 1,629,328. 53,029,99
Sub-total
5.92 24 4.16
51,400,66 1,629,328. 53,029,99
Total
5.92 24 4.16
18. Investment in other equity instruments
In CNY
Ending balance Opening balance
Shenzhen CATIC Culture Communication Co.,
0 0
Ltd.
Xi'an Tangcheng Co., Ltd. 85,000.00 85,000.00
Total 85,000.00 85,000.00
Itemized disclosure of investment in non-transactional equity instruments in the reporting period
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-progress Total
I. Original book value
1. Opening balance 609,605,406.79 609,605,406.79
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 609,605,406.79 609,605,406.79
II. Accumulative
depreciation and
accumulative amortization
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
1. Opening balance 211,518,959.01 211,518,959.01
2. Increase in the reporting
7,700,106.36 7,700,106.36
period
(1) Provision or
7,700,106.36 7,700,106.36
amortization
3. Amount decreased in the
reporting period
(1) Disposal
(2) Other transfer out
4. Ending balance 219,219,065.37 219,219,065.37
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
390,386,341.42 390,386,341.42
the reporting period
2.Book value at the
beginning of the reporting 398,086,447.78 398,086,447.78
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 asset 350,973,834.39 352,734,280.76
Total 350,973,834.39 352,734,280.76
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
(1) About fixed assets
In CNY
Machinery & Electronic
Items Plant & buildings Motor vehicle Others Total
equipment equipment
I. Original book
value
1. Opening
399,020,198.97 101,896,803.98 15,166,013.42 45,435,251.53 45,782,206.31 607,300,474.21
balance
2. Increase in the
9,624,523.09 946,483.28 549,108.35 1,317,843.60 743,336.81 13,181,295.13
reporting period
(1) Purchase 9,624,523.09 946,483.28 549,108.35 1,317,843.60 743,336.81 13,181,295.13
(2)
Construction-in-pro
cess transferred in
(3) Increase of
business
combination
3. Amount
decreased in the 2,142,434.06 1,048,238.10 1,063,923.00 897,565.89 262,101.88 5,414,262.93
reporting period
(1) Disposal or
1,063,923.00 827,972.46 201,157.51 2,093,052.97
scrapping
(2) Others 2,142,434.06 1,048,238.10 69,593.43 60,944.37 3,321,209.96
4. Ending
406,502,288.00 101,795,049.16 14,651,198.77 45,855,529.24 46,263,441.24 615,067,506.41
balance
II. Accumulative
depreciation
1. Opening
111,755,686.24 56,383,949.04 13,429,376.63 34,165,037.86 38,832,143.68 254,566,193.45
balance
2. Increase in the
6,118,013.36 3,859,292.50 210,986.77 2,092,250.62 1,135,541.03 13,416,084.28
reporting period
(1) Provision 6,118,013.36 3,859,292.50 210,986.77 2,092,250.62 1,135,541.03 13,416,084.28
3. Amount
decreased in the 1,123,885.90 678,105.04 1,010,726.85 848,016.88 227,871.04 3,888,605.71
reporting period
(1) Disposal or
1,010,726.85 799,831.33 172,835.57 1,983,393.75
scrapping
(2) Others 1,123,885.90 678,105.04 48,185.55 55,035.47 1,905,211.96
4. Ending
116,749,813.70 59,565,136.50 12,629,636.55 35,409,271.60 39,739,813.67 264,093,672.02
balance
III. Provision for
impairment
1. Opening
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
balance
2. Increase in the
reporting period
(1) Provision
3. Amount
decreased in the
reporting period
(1) Disposal or
scrapping
4. Ending
balance
IV. Book value
1.Book value at
the end of the 289,752,474.30 42,229,912.66 2,021,562.22 10,446,257.64 6,523,627.57 350,973,834.39
reporting period
2.Book value at
the beginning of the 287,264,512.73 45,512,854.94 1,736,636.79 11,270,213.67 6,950,062.63 352,734,280.76
reporting period
(2) About temporarily idle fixed assets
Inapplicable
(3) Fixed assets leased through operating lease
Inapplicable
(4) Fixed assets that do not have certificate for property right
In CNY
The reason why the property
Items Book value ownership certificate has not been
granted
Office occupancy of Harbin Office 230,978.57 There existed problem in ownership
(5) Disposal of fixed assets
Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
22. Construction-in-progress
Inapplicable
(1)About construction-in-progress
Inapplicable
(2) Movements of important construction-in-progress projects in the reporting period
Inapplicable
(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
25. Use right assets
In CNY
Items Housing and buildings Total
I. Original book value
1. Opening balance 264,657,797.63 264,657,797.63
2. Increase in the reporting period 28,291,257.85 28,291,257.85
3. Amount decreased in the reporting
10,779,708.54 10,779,708.54
period
4. Ending balance 282,169,346.95 282,169,346.95
II. Accumulative depreciation
1. Opening balance 94,519,584.92 94,519,584.92
2. Increase in the reporting period 48,686,092.09 48,686,092.09
(1) Provision 48,686,092.09 48,686,092.09
3. Amount decreased in the reporting
7,008,242.92 7,008,242.92
period
(1) Disposal 7,008,242.92 7,008,242.92
4. Ending balance 136,197,434.09 136,197,434.09
III. Provision for impairment
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
1. Opening balance
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
145,971,912.86 145,971,912.86
reporting period
2.Book value at the beginning of the
170,138,212.72 170,138,212.72
reporting period
26. Intangible assets
(1) About the intangible assets
In CNY
Non-patent
Items Land use right Patent Right Software system Trademark rights Total
technology
I. Original book
value
1. Opening
34,933,822.40 29,134,692.80 14,068,906.86 78,137,422.06
balance
2. Increase in
223,907.16 129,827.25 353,734.41
the reporting period
(1)
223,907.16 129,827.25 353,734.41
Purchase
(2) Internal
R&D
(3) Increase
of business
combination
3. Amount
decreased in the
reporting period
(1) Disposal
4. Ending
34,933,822.40 29,358,599.96 14,198,734.11 78,491,156.47
balance
II. Accumulative
amortization
1. Opening
15,048,815.45 18,612,740.91 6,616,549.19 40,278,105.55
balance
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
2. Increase in
366,776.65 2,412,854.66 663,244.18 3,442,875.49
the reporting period
(1) Provision 366,776.65 2,412,854.66 663,244.18 3,442,875.49
3. Amount
decreased in the
reporting period
(1) Disposal
4. Ending
15,415,592.10 21,025,595.57 7,279,793.37 43,720,981.04
balance
III. Provision for
impairment
1. Opening
balance
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 19,518,230.30 8,333,004.39 6,918,940.74 34,770,175.43
reporting period
2.Book value
at the beginning of 19,885,006.95 10,521,951.89 7,452,357.67 37,859,316.51
the reporting period
At the end of the reporting period, the intangible assets formed through the Company's internal research and development
accounted for 0.00% of the balance of intangible assets.
(2) About the land use right that does not have certificate of title
Inapplicable
27. Development expenditure
Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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
Amount increased Amount amortized
Items Opening balance in the reporting in the reporting Other decrease Ending balance
period period
Charge of
fabrication of 25,146,766.71 10,751,796.91 10,524,308.51 0 25,374,255.11
special counters
Refurbishment
98,681,716.46 40,401,202.23 30,849,126.59 0 108,233,792.10
expenses
Others 6,189,104.82 13,207,546.87 5,062,629.25 0 14,334,022.44
Total 130,017,587.99 64,360,546.01 46,436,064.35 0 147,942,069.65
30. Deferred tax assets and deferred tax liabilities
(1) Deferred income tax asset without offsetting
In CNY
Ending balance Opening balance
Items Offsetable provisional Deferred income tax Offsetable provisional Deferred income tax
difference asset difference asset
Asset impairment
126,005,356.71 24,881,788.48 122,763,597.44 24,130,990.19
reserve
Unrealized profit from
the intracompany 111,501,304.92 27,738,982.77 135,402,764.86 33,674,974.92
transactions
Offsetable loss 52,775,719.35 12,473,390.66 64,272,084.42 15,216,766.23
Restricted shares 12,138,511.75 2,820,567.68 10,011,227.40 2,398,201.09
Promotion expenses
available for
14,351,406.36 2,691,237.41 18,840,253.36 3,378,321.23
carrying-forward to the
next year
Lease liabilities 148,110,170.80 37,027,542.70 0 0
Others 10,019,558.65 2,504,889.67 8,458,186.73 2,114,546.69
Total 474,902,028.54 110,138,399.37 359,748,114.21 80,913,800.35
(2) Deferred income tax liabilities without offsetting
In CNY
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Ending balance Opening balance
Items Provisional difference Deferred income tax Provisional difference Deferred income tax
of taxes payable liability of taxes payable liability
Fixed assets deducted
in once-and-for-all way 20,004,473.90 3,000,671.09 20,452,230.39 3,067,834.55
before taxation
Use right assets 145,787,453.52 36,446,863.39 0 0
Total 165,791,927.42 39,447,534.48 20,452,230.39 3,067,834.55
(3) Deferred income tax asset or liabilities stated with net amount after offsetting
In CNY
Amount mutually offset
Amount mutually offset
Ending balance of the between the deferred Opening balance of the
between the deferred
deferred income tax income tax assets and deferred income tax
Items income tax assets and
asset or liabilities after liabilities at the asset or liabilities after
liabilities at the end of
offsetting beginning of the offsetting
the reporting period
reporting period
Deferred income tax
35,609,701.32 74,528,698.05 0 80,913,800.35
asset
Deferred income tax
35,609,701.32 3,837,833.16 0 3,067,834.55
liability
(4) Statement of deferred income tax asset not recognized
In CNY
Items Ending balance Opening balance
Offsetable provisional difference 14,665,778.78 14,790,427.78
Offsetable loss 55,713,663.36 61,104,363.07
Total 70,379,442.14 75,894,790.85
(5) Unrecognized deferred income tax asset available for offsetting loss is going to expire in the
following years
In CNY
Amount at the end of the
Year Amount at the year beginning Remarks
reporting period
2020
2021
2022
2023
2024 1,724,268.09 7,114,967.80
2025 11,684,299.22 11,684,299.22
2026 18,449,678.50 18,449,678.50
2027 23,855,417.55 23,855,417.55
2028
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
2029
2030
2031
Total 55,713,663.36 61,104,363.07 --
31. Other non-current assets
In CNY
Ending balance Opening balance
Items Book Impairment Book Impairment
Book value Book value
balance reserve balance reserve
Advance payment for engineering 5,499,554.0 5,499,554.0 13,536,307. 13,536,307.
0 0
works and equipment 7 7 13 13
5,499,554.0 5,499,554.0 13,536,307. 13,536,307.
Total 0 0
7 7 13 13
32. Short term loans
(1) Classification of short-term loans
In CNY
Items Ending balance Opening balance
Secured loan 9,609,712.54 142,247,348.04
Credit loan 450,413,888.89 400,425,930.05
Total 460,023,601.43 542,673,278.09
(2)Short-term loans overdue but still remaining outstanding
Inapplicable
33. Transactional financial liabilities
Inapplicable
34. Derivative financial liabilities
Inapplicable
35. Notes payable
In CNY
Categories Ending balance Opening balance
Trade acceptance 2,181,360.00 3,581,360.00
Total 2,181,360.00 3,581,360.00
The total amount of due but outstanding notes payable at the end of the reporting period is CNY 0.00.
36. Accounts payable
(1) Presentation of accounts payable
In CNY
Items Ending balance Opening balance
Payment for goods 228,935,070.03 284,050,848.79
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Payment for materials 12,490,669.90 15,679,531.11
Engineering payment payable 1,232,967.42 1,481,135.49
Total 242,658,707.35 301,211,515.39
(2) Significant accounts payable with age exceeding 1 year
Inapplicable
37. Advance receipt
(1) Statement of advances from customers
In CNY
Items Ending balance Opening balance
Rent 8,932,926.97 9,991,850.67
Total 8,932,926.97 9,991,850.67
(2) Significant advances from customers with age exceeding 1 year
Inapplicable
38. Contract liabilities
In CNY
Items Ending balance Opening balance
Payment for goods 18,658,899.34 18,213,396.49
Total 18,658,899.34 18,213,396.49
The amount involved in the significant change of the book value and the cause during the reporting period
Inapplicable
39. Payroll payable to the employees
(1) Payroll payable to the employees
In CNY
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
I. Short term
125,981,238.62 340,145,971.72 391,091,056.48 75,036,153.86
remuneration
II. Post-employment
benefit Plan - defined 6,767,477.58 23,305,565.10 20,902,624.80 9,170,417.88
contribution plan.
III. Dismissal welfare 104,746.00 554,962.97 659,708.97 0
Total 132,853,462.20 364,006,499.79 412,653,390.25 84,206,571.74
(2) Presentation of short term remuneration
In CNY
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
1. Salaries, bonus,
125,136,477.65 301,577,842.12 352,422,107.31 74,292,212.46
allowances and
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
subsidies
2. Staff’s welfare 3,805.46 6,149,022.84 6,144,031.30 8,797.00
3. Social security
18,617,626.35 18,617,626.35
premium
Including: medical
9,721,058.77 9,721,058.77
insurance premium
Work injury
334,853.76 334,853.76
insurance
Maternity
416,392.62 416,392.62
Insurance
4. Housing provident
2,932.00 9,462,521.35 9,456,234.35 9,219.00
fund
5. Trade union fund
and staff education 838,023.51 4,338,959.06 4,451,057.17 725,925.40
fund
Total 125,981,238.62 340,145,971.72 391,091,056.48 75,036,153.86
(3) Presentation of the defined contribution plan
In CNY
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
1. Basic endowment
295,976.45 19,802,009.67 20,096,653.74 1,332.38
insurance premium
2. Unemployment
437.76 580,246.73 580,684.49 0
insurance premium
3. Contribution to the
6,471,063.37 2,923,308.70 225,286.57 9,169,085.50
enterprise annuity Plan
Total 6,767,477.58 23,305,565.10 20,902,624.80 9,170,417.88
40. Taxes payable
In CNY
Items Ending balance Opening balance
Value-added tax 33,133,848.51 36,028,888.63
Business income tax 26,311,470.96 29,488,177.68
Individual income tax 2,544,435.89 1,609,420.04
Urban maintenance and construction
478,365.65 631,469.18
tax
Education Surcharge 341,348.02 450,946.60
Others 3,135,776.24 716,369.77
Total 65,945,245.27 68,925,271.90
41. Other payables
In CNY
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Items Ending balance Opening balance
Dividends payable 5,210,370.29 1,639,513.77
Other payables 219,515,407.89 126,938,084.17
Total 224,725,778.18 128,577,597.94
(1) Interest payable
Inapplicable
(2) Dividend payable
In CNY
Items Ending balance Opening balance
Dividends of common shares 5,210,370.29 1,639,513.77
Total 5,210,370.29 1,639,513.77
(3) Other payables
1) Other payments stated based on nature of fund
In CNY
Items Ending balance Opening balance
Cash pledge or cash deposit 40,538,496.20 46,419,944.64
Fund for shop-front activities 22,245,132.28 21,861,578.14
Personal account payable 504,712.15 137,818.57
Refurbishment 9,382,435.53 7,481,768.84
Obligation of repurchase of restricted
66,673,709.70 16,299,166.73
shares
Others 80,170,922.03 34,737,807.25
Total 219,515,407.89 126,938,084.17
2) Other payables in significant amount and with aging over 1 year
Inapplicable
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 352,600.00 370,030.00
Long-term lease liabilities due within
95,391,666.63 96,176,525.48
one year
Total 95,744,266.63 96,546,555.48
44. Other current liabilities
In CNY
Items Ending balance Opening balance
Pending output VAT 2,374,396.18 2,299,755.09
Total 2,374,396.18 2,299,755.09
Increase/decrease of the short term bonds payable:
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Inapplicable
45. Long-term Loan
(1) Classification of Long-term Borrowings
In CNY
Items Ending balance Opening balance
Pledge loan 3,702,300.00 4,070,330.00
Total 3,702,300.00 4,070,330.00
Notes to classification of long term borrowings:
As of June 30, 2021, the book value of the fixed assets of the Group used for loan collateral was CNY 12,210,771.28.
Other notes, including the interest rate interval:
The interest rate of the borrowing is 3%.
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
In CNY
Items Ending balance Opening balance
Lease liabilities 52,886,029.26 76,142,342.03
Total 52,886,029.26 76,142,342.03
48. Long term accounts payable
Inapplicable
(1) Long term accounts payable stated based on the nature
Inapplicable
(2) Special accounts payable
Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
49. Long term payroll payable to the employees
(1) Long term payroll payable to the employees
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
Government Income to be
2,916,346.43 0 538,628.08 2,377,718.35
subsidies recognized
Total 2,916,346.43 0 538,628.08 2,377,718.35 --
Items involving government subsidies:
In CNY
Amount
counted to Amount Amount
Amount of
the counted to offsetting Related with
newly added
Opening non-operati the other costs and Other Ending assets/relat
Liabilities subsidy in
balance ng income income in expenses in changes balance ed with
the reporting
in the the reporting the reporting income
period
reporting period period
period
Deferred Related with
551,309.04 0 551,309.04
income assets
Deferred Related with
925,127.45 0 925,127.45
income assets
Deferred Related with
901,281.86 0 901,281.86
income assets
Deferred Related with
538,628.08 538,628.08 0
income income
52. Other non-current liabilities
Inapplicable
53. Capital stock
In CNY
Opening Increase / Decrease (+/ -) Ending
balance New issuing Bonus shares Shares Others Sub-total balance
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
converted
from reserve
428,091,881. 435,550,522.
Total Shares 7,458,641.00 0 7,458,641.00
00 00
Other notes:
(1) On January 15, 2021, the Company held the 25th session of the Ninth Board of Directors and the 22nd session of the
Ninth Supervisory Committee, which reviewed and approved the Proposal on Granting Restricted Shares to the Incentive
Objects as Specified in 2018 A Share Restricted Stock Incentive Plan (Phase II)” and other related proposals, granted 7.66
million restricted A-shares to 135 incentive objects, accounting for 1.79% of the Company’s total share capital before the
registration of the shares granted.
(2) According to the “Proposal for Repurchase and Cancellation of the Partial Restricted Shares Involved in 2018
A-Share Restricted Stock Incentive Plan (Phase I)” and the “Proposal for Repurchase and Cancellation of the Partial
Restricted Shares Involved in 2018 A-Share Restricted Stock Incentive Plan (Phase II)” approved at the board meeting
and general meeting, in year 2021, the Company repurchased and canceled a total of 201,359 A-share restricted shares
that were held by, granted to but with restriction not released to 2 retired former incentive objects.
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 Decrease in the
Items Opening balance Ending balance
reporting period reporting period
Capital premium
996,986,711.73 50,595,978.03 1,147,454.00 1,046,435,235.76
(capital stock premium)
Other capital reserve 24,503,676.05 7,719,886.13 0 32,223,562.18
Total 1,021,490,387.78 58,315,864.16 1,147,454.00 1,078,658,797.94
Other notes, including the note to its increase/decrease and the main cause(s) of its movement in the reporting period:
(1) On January 15, 2021, the Company held the 25th session of the Ninth Board of Directors and the 22nd session of the
Ninth Supervisory Committee, which reviewed and approved the Proposal on Granting Restricted Shares to the Incentive
Objects as Specified in 2018 A Share Restricted Stock Incentive Plan (Phase II)” and other related proposals, granted 7.66
million restricted A-shares to 135 incentive objects, accounting for 1.79% of the Company’s total share capital before the
registration of the shares granted. Thus the capital reserve increased correspondingly by CNY 50,556,000.00.
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
(2) According to the “Proposal for Repurchase and Cancellation of the Partial Restricted Shares Involved in 2018
A-Share Restricted Stock Incentive Plan (Phase I)” and the “Proposal for Repurchase and Cancellation of the Partial
Restricted Shares Involved in 2018 A-Share Restricted Stock Incentive Plan (Phase II)” approved at the board meeting
and general meeting, in first half year of 2021, the Company repurchased and canceled a total of 201,359 A-share
restricted shares that were held by, granted to with the restriction but not released to 2 retired former incentive objects.
Thus the capital reserve was written down by CNY 1,144,077.00.
(3) On January 4, 2019,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 Plan” (GUO ZI KAO FEN [2018]
No. 936), and at the same time reviewed and approved by the Board of Directors and the General Meeting, the Company
awarded 4.277 million shares of A-share restrictive stock to the incentive objects in the Company’s Restrictive Stock
Incentive Plan (Phase I) as at January 11, 2019. Reviewed and approved by the Company's Board of Directors and the
General Meeting of shareholders, the Company granted the second phase of restricted A shares to incentive objects on
January 15, 2021. In the first half year of 2021, the services of the above-mentioned incentive objects obtained by the
Company shall be included in the relevant costs or expenses and the capital reserve shall be increased by CNY
6,158,808.77 accordingly.
(4) 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 Plan
(Phase I). According to the relevant provisions of the Measures for Management of Equity Incentive of Listed Companies
and 2018 A Share Restricted Stock Incentive Plan (Phase I)(Draft Revision Version), the release conditions for the first
release period of 2018 Restricted A-Share Incentive Plan (Phase I) have been satisfied. After the release, the Company’s
capital reserve shall increase by CNY 1,561,077.36.
(5) According to "Proposal on the Repurchase of the Company's Partial Domestically Listed Foreign Shares (B Shares)”
reviewed and approved at the 7th session of the Ninth Board of Directors and 2019 2nd Extraordinary General Meeting and
the “Proposal for the Repurchase of Partial Domestically Listed Foreign Shares in the Company (B-shares)”reviewed and
approved at 2020 2nd Extraordinary General Meeting, in the first half year of 2021，the Company repurchased its own
shares through a centralized bidding method with the special account for the securities repurchased at expense
equivalent to CNY 3,377.00 which has written off capital reserve amounting to CNY 3,377.00.
56. Treasury shares
In CNY
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
Shares in stock 61,633,530.48 63,013,838.49 6,774,896.51 117,872,472.46
Total 61,633,530.48 63,013,838.49 6,774,896.51 117,872,472.46
Other notes, including the note to its increase/decrease and the main cause(s) of its movement in the reporting period:
(1) As stated in Note VII. 55. Capital Reserves and Note (1), the Company has increased treasury shares by CNY
58,216,000.00 for the issue of the second phase of equity incentives.
(2) As stated in Note VII. 55. Capital Reserves and Note (2), the Company reduced treasury shares by CNY 1,345,436.00
in relation to the repurchase and cancellation of restricted stocks.
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
(3) In the semi-annual of 2021，the Company repurchased accumulatively 847,685 shares of the Company's B-shares
through a centralized bidding method with Shenzhen Stock Exchange and paid HKD 5,691,273.88 (with trading cost
exclusive) which was equivalent to CNY 4,757,740.96. As a result, the treasury stock increased by CNY 4,757,740.96.
(4) 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 Plan
(Phase I). According to the relevant provisions of the Measures for Management of Equity Incentive of Listed Companies
and 2018 A Share Restricted Stock Incentive Plan (Phase I)(Draft Revision Version), the release conditions for the first
release period of 2018 Restricted A-Share Incentive Plan (Phase I) have been satisfied. After the said release, the treasury
stock decreased by CNY 5,429,460.51.
57. Other comprehensive income
In CNY
Amount incurred in the reporting period
Less: the
amount
counted to
Less: the the retained
amount counted earnings
to the profit and during the
Amount loss during the reporting Attributable
Attributable
Opening incurred before reporting period period Less: to the Ending
Items to minority
balance income tax in which had been which had Income tax parent balance
shareholder
the reporting counted to the been expense company
s after tax
period other counted to after tax
comprehensive the other
income in the comprehen
previous period. sive income
in the
previous
period.
I. Other comprehensive
income which cannot be 0.00 0.00 0.00 0.00 0.00
re-classified into profit and loss
Where: Amount of change of
the beneficial plan remeasured
for setting
Other comprehensive
income which cannot be
converted into gain and loss
based on the equity method
Movement of the fair
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
value of the investment in other
equity instruments
Movement of the fair
value of the Company’s own
credit risk
II. Other comprehensive
-6,477,955. -5,501,08
income which shall be 976,871.41 -6,510,295.78 -32,340.62
16 3.75
re-classified into profit and loss
Where: other comprehensive
income which can be
converted into gain and loss
based on the equity method
Change of the fair value
of the investment in other
creditor investment
Amount of the
reclassified financial assets
counted to the other
comprehensive income
Provision for impairment
of the credit of the other debt
investment
Reserve for cash flow
hedge
Conversion difference in -6,477,955. -5,501,08
976,871.41 -6,510,295.78 -32,340.62
foreign currency statements 16 3.75
Total other comprehensive -6,477,955. -5,501,08
976,871.41 -6,510,295.78 -32,340.62
income 16 3.75
58. Special reserve
In CNY
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
Safety production
0 491,605.68 195,913.72 295,691.96
costs
Total 0 491,605.68 195,913.72 295,691.96
59. Surplus Reserve
In CNY
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
Statutory surplus
184,546,972.87 0 0 184,546,972.87
reserve
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Discretionary surplus
61,984,894.00 0 0 61,984,894.00
reserve
Total 246,531,866.87 0 0 246,531,866.87
60. Retained earnings
In CNY
Items Reporting period Previous period
Before adjustment: Retained earnings at the
1,164,490,911.51 966,840,818.40
end of the previous period
Total retained earnings under adjustment at
the beginning of the reporting year -4,319,295.51 0
(adjustment up +, adjustment down -)
After adjustment: Retained earnings at the
1,160,171,616.00 966,840,818.40
beginning of the reporting period
Plus: Net profit attributable to the parent
233,544,726.55 294,115,156.04
company’s owner in the report period
Less: Provision of statutory surplus public
0 10,830,686.73
reserve
Dividends of common shares payable 174,220,065.73 85,634,376.20
Retained earnings at the end of the reporting
1,219,496,276.82 1,164,490,911.51
period
Statement of adjustment of retained earnings at the beginning of the reporting period:
1) The amount involved in the retroactive adjustment according to the Enterprise Accounting Standards and the relevant
new provisions influencing the retained earnings at the beginning of the reporting period was CNY -4,319,295.50.
2) The amount involved in change of the accounting policy influencing the retained earnings at the beginning of the
reporting period was CNY 0.
3) The amount involved in correction of the significant accounting errors influencing the retained earnings at the beginning
of the reporting period was CNY 0.
4) The amount involved in change of the consolidation scope caused by the common control influencing the retained
earnings at the beginning of the reporting period was CNY 0.
5) The total amount involved in other adjustments influencing the retained earnings at the beginning of the reporting period
was CNY 0.
61. Operation Income and Costs
In CNY
Amount incurred in the reporting period Amount incurred in the previous period
Items
Income Cost Income Cost
Principal business 2,770,803,774.51 1,736,967,152.08 1,579,084,669.87 977,121,580.01
Other businesses 6,715,746.83 1,182,329.62 2,750,045.16 314,096.86
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Total 2,777,519,521.34 1,738,149,481.70 1,581,834,715.03 977,435,676.87
Information in connection with the revenue:
In CNY
Classification of
Segment 1 Segment 2 Total
Contracts
Types of commodities
Including:
Watch brand business 541,632,277.89 541,632,277.89
Watch retail and
2,095,715,705.60 2,095,715,705.60
services
Precision technology
59,305,901.13 59,305,901.13
business
Leases 74,149,889.89 74,149,889.89
Others 6,715,746.83 6,715,746.83
Classification based on
the operation regions
Including:
South China 1,404,978,399.03 1,404,978,399.03
Northwest China 414,691,758.15 414,691,758.15
Northeast China 138,241,583.29 138,241,583.29
East China 381,212,790.12 381,212,790.12
Northeast China 158,038,232.08 158,038,232.08
Southwest China 280,356,758.67 280,356,758.67
Total 2,777,519,521.34 2,777,519,521.34
Information concerning obligation performance:
① General sales
When the goods are dispatched, the receipt of the customer's receipt is obtained, and according to the sales contract
signed by both parties, it is confirmed that the control of the goods has been transferred to the purchaser, and the sales
revenue is recognized.
② Direct sales
a. Offline retail: Under the direct sales business model, sales revenue is recognized when the goods is sent out, the sales
payment is received and the products are delivered to the customer.
b. Online retail: Under the e-commerce platform sales model, sales revenue is recognized when products are delivered and
signed for reception by customers.
③ Mall Associates
Under the joint sales model, the Group recognizes revenue when products are delivered to customers, shop assistants
issue small invoices to retail customers, customers accept acceptance and shopping malls collect payments.
④ Consignment sales
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Under the consignment sales model, the Group recognizes revenue when it receives the sales list from the consignee and
confirms that the control over the ownership of the goods has been transferred to the purchaser.
⑤ Consignment Sales
Under the consignment sales model, when the Group delivers external consignment products to customers and confirms
that the control over the ownership of the goods has been transferred to the purchaser, the Group recognizes revenue
based on the net method.
Information related to the transaction price allocated to the remaining obligations performance:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations of the contracts
which have been signed, but not yet performed or not yet completed is CNY 0.00, of which CNY 0.00 is expected to be
recognized as revenue in the year, CNY 0.00 is expected to be recognized as revenue in the yea, and CNY 0.00 is
expected to be recognized as revenue in the year.
Inapplicable
62. Business Taxes and Surcharges
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Consumption tax 726,813.41 39,803.71
Urban maintenance and construction
5,877,927.84 2,489,349.64
tax
Education Surcharge 4,121,272.93 1,762,953.17
Real estate tax 3,567,272.30 1,403,403.52
Land use tax 197,939.71 119,304.10
Tax on using vehicle and boat 2,520.00 2,880.00
Stamp duty 1,641,839.17 1,007,174.51
Others 320,376.10 446,115.04
Total 16,455,961.46 7,270,983.69
63. Sales expenses
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Payroll to Employees 213,043,074.52 157,546,673.59
Shopping mall and rental fees 129,400,920.28 89,783,779.60
Advertising, exhibition and market
91,568,222.91 61,631,796.14
promotion fee
Depreciation and amortization 92,926,914.28 44,191,277.25
Packing expenses 4,481,736.64 3,301,568.93
Water & power supply and property
10,882,939.50 8,864,424.63
management fee
Freight 4,242,070.29 5,368,007.05
Office expenses 3,919,959.69 2,324,895.41
Business travel expenses 3,520,062.70 1,975,223.92
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Business entertainment 1,950,807.85 1,052,159.62
Others 5,693,343.97 4,888,506.37
Total 561,630,052.63 380,928,312.51
64. Administrative expenses
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Payroll to Employees 90,780,253.80 72,157,594.27
Depreciation and amortization 12,421,579.17 13,362,685.84
Business travel expenses 1,799,515.00 967,235.20
Office expenses 1,767,686.85 2,085,464.53
Service fee to intermediary agencies 1,662,615.14 1,598,683.57
Water, electricity, property and rent 3,315,987.84 1,751,821.99
Others 9,644,028.05 6,316,863.33
Total 121,391,665.85 98,240,348.73
65. R & D expenditures
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Payroll to Employees 18,674,577.25 13,262,678.07
Materials and moulds 384,901.07 89,596.90
Payment for samples 640,496.08 593,599.24
Depreciation and amortization 3,117,098.99 3,162,020.53
Technical cooperation fee 657,671.10 1,536,929.13
Others 2,895,320.19 2,059,446.89
Total 26,370,064.68 20,704,270.76
66. Financial expenses
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Interest payment 14,778,321.69 13,485,670.67
Less: capitalized interest 0 0
Less: Interest income 2,153,626.51 2,482,721.82
Exchange gain & loss -9,312.50 713,188.07
Service charges and miscellaneous 8,161,891.03 4,812,806.44
Total 20,777,273.71 16,528,943.36
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 11,662,934.28 10,154,015.67
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
68. Return on investment
In CNY
Amount incurred in the previous
Items Amount incurred in the reporting period
period
Income from long term equity investment
1,629,328.24 2,160,911.92
based on equity method
Total 1,629,328.24 2,160,911.92
69. Net exposure hedge income
Inapplicable
70. Income from change of the fair value
Inapplicable
71. Loss from impairment of credit
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Provision for bad debt of other
-173,755.96 -1,851.58
receivables
Loss from bad debt of notes receivable -484,421.80 0
Loss from bad debt of accounts
-1,377,059.19 -2,465,509.77
receivable
Total -2,035,236.95 -2,467,361.35
72. Loss from impairment of assets
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
I. Loss from bad debt 0.00 0.00
II. Loss from price falling of inventory
and loss from impairment of contract -1,226,362.68 0
performance costs
Total -1,226,362.68 0
73. Income from disposal of assets
In CNY
Source of income from disposal of
Amount incurred in the reporting period Amount incurred in the previous period
assets
Profit from disposal of fixed assets
-73,807.46 -200,140.17
(loss is stated with “-”)
74. Non-operating income
In CNY
Items Amount incurred in the Amount incurred in the Amount counted to the
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
reporting period previous period current non-operating gain
and loss
Compensation 3,475.00 0 3,475.00
Disposal of account payable
124,191.89 877,410.33 124,191.89
impossible to be paid
Others 144,301.38 514,449.09 144,301.38
Total 271,968.27 1,391,859.42 271,968.27
Government subsidy counted to the current profit and loss:
Inapplicable
75. Non-operating expenditure
In CNY
Amount counted to the
Amount incurred in the Amount incurred in the
Items current non-operating gain
reporting period previous period
and loss
Outward donation 100,000.00 0 100,000.00
Others 759,659.12 118,646.41 759,659.12
Total 859,659.12 118,646.41 859,659.12
76. Income tax expense
(1) Statement of income tax expenses
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Income tax expenses in the reporting
61,394,301.15 26,235,776.22
period
Deferred income tax expense 7,155,100.91 -12,327,864.33
Total 68,549,402.06 13,907,911.89
(2) Process of adjustment of accounting profit and income tax expense
In CNY
Items Amount incurred in the reporting period
Total profit 302,114,185.89
Income tax expense calculated based on the statutory/
75,528,546.47
applicable tax rate
Influence of different tax rates applicable to subsidiaries -4,424,414.99
Influence of adjustment of the income tax in the previous
447,731.08
period
Profit and loss of the joint ventures and associated
-407,332.06
calculated based on the equity method
Influence of the non-offsetable costs, expenses and loss 1,525,570.31
The effect of using deductible losses of deferred income tax
-1,330,766.11
assets that have not been recognized in the previous period
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Influence from the addition of the R & D expenses upon
-2,789,932.65
deduction of tax payment (to be stated with “-“)
76. Income tax expense 68,549,402.06
77. Other comprehensive income
For the detail, refer to Note VII. 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 6,760,506.27 5,210,311.30
Government subsidies 10,827,370.77 10,154,015.67
Cash deposit 5,023,790.54 7,315,744.37
Interest income 2,125,691.94 2,482,721.82
Reserve 2,279,469.79 1,303,065.89
Others 11,749,975.61 4,821,570.68
Total 38,766,804.92 31,287,429.73
(2) Other operation activities related cash receipts
Items Amount incurred in the reporting period Amount incurred in the previous period
Expenses during cash payment 220,464,795.10 152,218,961.04
Margin 13,205,523.62 5,539,017.16
Petty cash 10,265,576.39 7,966,971.55
Others 143,644.97 201,274.46
Total 244,079,540.08 165,926,224.21
Note to other cash received in connection with operating activities
Inapplicable
(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 48,479,393.47 30,650,504.85
Rent 62,446,320.30 56,722,191.19
Shopping mall fees 29,488,720.99 12,740,511.78
Advertisement fee 7,280,642.93 6,000,177.41
Packing expenses 789,630.85 3,491,359.91
Business travel expenses 5,267,489.46 2,955,291.84
Water and electricity fees 11,249,169.79 5,422,039.82
R & D expenses 5,121,243.29 3,588,855.18
Office expenses 4,886,848.76 5,169,903.19
Freight 4,918,962.22 5,917,126.15
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Exhibition fee 223,410.62 45,727.87
Property management fee 12,275,513.14 9,544,159.17
Business entertainment 2,602,399.87 1,310,428.39
Service fee to intermediary agencies 2,570,315.73 2,671,307.29
Others 46,479,478.66 19,696,640.17
Total 244,079,540.08 165,926,224.21
Note to other cash paid in connection with operating activities:
Inapplicable
(3) Other investment activities related cash receipts
Inapplicable
(4) Other investment activities related cash payments
Inapplicable
(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
Repurchase of B-shares 6,106,577.91 26,825,873.78
Lease liabilities 47,957,294.77 0
Total 54,063,872.68 26,825,873.78
Note to other cash paid in connection with financing activities:
Inapplicable
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 Adjustment of net profit into cash flows
-- --
of operating activities:
Net profit 233,564,783.83 77,738,906.30
Plus: Provision for impairment of
3,261,599.63 2,467,361.35
assets
Depreciation of fixed assets,
depletion of oil and gas asset,
21,116,190.64 21,037,291.58
depreciation of productive biological
asset
Depreciation of use right assets 48,686,092.09 0
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Amortization of intangible
3,442,875.49 3,829,094.00
assets
Amortization of long term
46,436,064.35 50,739,190.23
expenses to be apportioned
Loss (income is stated in “-”)
from disposal of fixed assets, intangible 73,807.46 200,140.17
assets and other long term assets
Loss on scrapping of fixed
assets (profit is stated with “-”)
Loss from change of fair value
(income is stated with “-”)
Financial expenses (income is
14,769,009.19 13,485,670.67
stated with “-”)
Investment loss (income is
-2,000,000.00 -2,160,911.92
stated with “-”)
Decrease of the deferred
income tax asset (increase is stated with 6,385,102.30 -12,327,864.33
“_”)
Increase of deferred income tax
769,998.61 -63,520.78
liability (decrease is stated with “-”)
Decrease of inventories
-83,529,356.74 10,360,528.74
(Increase is stated with “-”)
Decrease of operative items
-31,249,035.35 -57,935,867.20
receivable (Increase is stated with “-”)
Increase of operative items
-56,572,567.57 -3,724,783.54
payable (Decrease is stated with “-”)
Others
Net cash flows arising from
205,154,563.93 103,645,235.27
operating activities
2 Significant investment and fund-raising
activities with no cash income and -- --
expenses involved:
Capital converted from liabilities
Convertible company bonds due
within a year
Fixed assets under financing lease
3 Net change in cash and cash
-- --
equivalents:
Ending cash balance 234,840,156.69 344,906,641.68
Less: Opening balance of cash 353,057,285.71 315,093,565.09
Plus: Ending balance of cash
equivalent
Less: Opening balance of cash
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
equivalent
Net increase of cash and cash
-118,217,129.02 29,813,076.59
equivalents
(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 234,840,156.69 353,057,285.71
Including: Cash in stock 119,448.51 183,759.72
Bank deposit available for
214,931,355.40 346,055,209.29
payment at any time
Other monetary fund used for
19,789,352.78 6,818,316.70
payment at any time
II. Cash equivalent 0.00 0.00
III. Ending balance of cash and cash
234,840,156.69 353,057,285.71
equivalents
Including: cash and cash equivalents
restricted for use from the parent
5,061,912.69 3,412,028.94
company or other subsidiaries of the
Group
80. Notes to items of statement of change in owner’s equity
Inapplicable
81. Assets restricted in ownership or use right
In CNY
Book value at the end of the reporting
Items Cause of restriction
period
Notes receivable 6,662,928.59 Notes discounted
Fixed asset 12,210,771.28 Security guarantee
Total 18,873,699.87 --
82. Foreign currency monetary items
1. Foreign currency monetary items
In CNY
Ending balance of foreign Ending balance of Renminbi
Items Conversion rate
currency converted
Monetary capital -- --
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Including: USD 2,763,496.16 6.4601 17,852,461.54
Euro 218,828.11 7.6862 1,681,956.62
HKD 23,371,434.27 0.83208 19,446,903.03
SF 676,581.00 7.0134 4,745,133.19
Accounts receivable -- --
Including: USD 523,915.78 6.4601 3,384,548.33
Euro 93,237.95 7.6862 716,645.53
HKD 2,739,341.11 0.8321 2,279,350.95
SF 14,180.64 7.0134 99,454.48
GBP 15,566.13 8.9410 139,176.77
Long-term Loan -- --
Including: USD
Euro
HKD
SF 527,889.47 7.0134 3,702,300.00
36. Accounts payable
Including: USD 1,019.00 6.4601 6,582.84
HKD 5,665,116.10 0.8321 4,713,829.80
SF 212,526.65 7.0134 1,490,534.39
JP Yen 15,075,000.00 0.0584 880,802.10
Other receivables
HKD 124,383.64 0.8321 103,497.14
Other payables
Including: USD 17,787.95 6.4601 114,911.94
Euro 152.84 7.6862 1,174.76
HKD 16,832.91 0.8321 14,006.33
SF 30,683.00 7.0134 215,192.13
Non-current liabilities due
within a year
SF 50,275.19 7.0134 352,600.00
(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.
For the principal business place, function currency for bookkeeping for key oversease business entities, refer to Note V.4.
83. Hedging
Inapplicable
84. Government subsidies
(1) Basic information of government subsidies
In CNY
Categories Amount Items presented Amount counted to the current
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
profit and loss
Fund of the Talent Qualification
Improvement Engineering Project of the
108,000.00 Other income 108,000.00
Human Resource Bureau of Nanshan
District, Shenzhen
Subsidy of the work-for-training granted
by Human Resource Bureau of Nanshan 355,000.00 Other income 355,000.00
District, Shenzhen
Enterprise R & D investment supporting
Plan fund (A) granted by Science &
466,100.00 Other income 466,100.00
Technology Innovation Bureau of
Nanshan District, Shenzhen
Financial support fund of the 2nd Industry
Design Development Supporting Plan
50,000.00 Other income 50,000.00
2021 granted by Shenzhen Industrial and
Information Technology Bureau
Fund for the projects to be financed in the
Patent Support Plan of Science &
5,500.00 Other income 5,500.00
Technology Innovation Bureau of
Nanshan District, Shenzhen
2020 patent financial support granted by
Shenzhen Agency of China National 10,000.00 Other income 10,000.00
Intellectual Property Administration
Special financial support of 2020
Shenzhen Standard Field (B) from Market
582,152.00 Other income 582,152.00
Supervision Administration of Shenzhen
Municipality
Steady growth financial support of the
second half year of 2020 (C) from
4,447,800.00 Other income 4,447,800.00
Nanshan District Bureau of Finance,
Shenzhen
Sale and retail growth promotion award
2021 (D) of Shenzhen Municipal Bureau 3,500,000.00 Other income 3,500,000.00
of Finance
Allowance Wentaorun Foreign Trade
35,439.00 Other income 35,439.00
Quality Growth Support Project
Financial support of enterprise social
609,576.69 Deferred income 538,628.08
security subsidy (E)
Subsidy for stabilizing employment 150.04 Other income 150.04
Training allowance for enterprises in
75,600.00 Other income 75,600.00
difficulty
Enterprise R & D financial support of year
460,000.00 Other income 460,000.00
2016 (municipal level) (F) received
2020 financial support of Shenzhen 254,553.00 Other income 254,553.00
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Standards Field received
Employment allowance for employing
impoverished laborers under data 25,000.00 Other income 25,000.00
tracking by enterprises in January 2021
Special financial support of technology
innovation multiplication 2020 from
70,000.00 Other income 70,000.00
Shenzhen Industry and Information
Technology Bureau
Allowance for the Endowment and
Medical Insurance for the Disabled in the
1,993.08 Other income 1,993.08
Second Half of 2020 from Guangming
District
Financial support with loan with
discounted interest to medium and small
4,392.64 Other income 4,392.64
enterprises against COVID-19 in
Shenzhen
Financial support for domestic and foreign
2,500.00 Other income 2,500.00
invention patent in 2020
2020 financial support with loan with
discounted interest during the pandemic 9,095.00 Other income 9,095.00
in Guangming District
2019 R & D financial support from the
Technology Innovation Commission of 296,000.00 Other income 296,000.00
Shenzhen Municipality
Electricity subsidies 450,562.00 Administrative expenses 450,562.00
Others 365,031.44 Other income 365,031.44
(A) It is a government subsidy obtained in accordance with the Notice of the General Office of Nanshan District People's
Government Shenzhen on Printing and Issuing the “Measures for the Management of Special Fund for the Development
of Independent Innovation Industries in Nanshan District” (Shennan Fuban Gui [2019] No. 2).
(B) It is a government subsidy obtained according to the Notice on 2020 Special Financial Support Award of Shenzhen
Standard Field promulgated by the Market Supervision Administration of Shenzhen Municipality
(C）It is a government subsidy obtained according to the Official Presentation of the List of Enterprises Qualified for
Enjoying the Financial Support to be Deliberated at 2021 1st Session of the Special Fund for Independent Innovation
Industry Development of Nanshan District.
(D) It is a government subsidy obtained according to the Notice of Shenzhen Municipal Bureau of Commerce on the Award
Plan for Promoting Consumption Upgrading Support Plan - Retail Volume (Turnover) Growth Reward Project in Year 2021.
(E) It is a government subsidy obtained according to the Notice on Printing and Issuing the Measures for Verification of the
Subsidy for Stabilizing the Employment by Enterprises in Temporary Difficulty in Chengdu promulgated by ten government
departments, including the Human Resources and Social Security Bureau of Chengdu Municipality (CHENG REN SHE FA
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
(2019) No. 15).
(F) It is a government subsidy obtained according to the Notice of the Science & Technology Innovation Commission of
Shenzhen Municipality Advance Collection of the Application Materials, Fund Allocation Materials and Letter of Good Faith
Commitment of Scientific Research for the 1st Financial Support Fund in the Enterprise R & D Financial Support Plan in
Year 2020.
(2) Refunding of the government subsidies
Inapplicable
85. Others
Inapplicable
VIII. Change in consolidation scope
1. Business combination not under the common 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
Does there exist any transaction in which the enterprise consolidation is realized step by step through several transactions
and the control power is obtained within the reporting period.
No
(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. Business combination under the common control
(1) Consolidation of enterprises under common control during the reporting period
Inapplicable
(2) Consolidation cost
Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
(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
Does there exist any such situation that a single disposal may cause the control power over the investment in a subsidiary
lost?
No
Does there exist any such situation that disposal in steps through a number of transactions may cause the control power
over the investment in a subsidiary lost during the reporting period?
No
5. Change of consolidation scope due to other reason
Note to the change in the scope of consolidation caused by other reasons (such as newly established subsidiaries,
liquidation subsidiaries, etc.) and related conditions:
1. The Company's 23rd Session of the Ninth Board of Directors held on December 4, 2020, reviewed and approved the
"Proposal on the Establishment of a Wholly Owned Subsidiary" and decided to invest in the establishment of a
wholly-owned subsidiary - Shenzhen Xunhang Precision Technology Co., Ltd., with its own capital amounting to CNY10
million. For the detail, please refer to the “Announcement on Investment and Establishment of a Wholly Owned
Subsidiary 2020-072” disclosed in the Securities Times, Hong Kong Commercial Daily and www.cninfo.com. As of the end
of the reporting period, the Company completed the industrial and commercial establishment registration procedures and
received the business license issued by the Shenzhen Municipal Market Supervision Administration.
2. The Company's 29th Session of the Ninth Board of Directors held on May 21, 2021, reviewed and approved the
"Proposal on the Establishment of a Wholly Owned Subsidiary" and decided to invest in the establishment of a
wholly-owned subsidiary - HARMONY World Watch Center (Hainan) Limited, with its own capital amounting to CNY10
million. For the detail, please refer to the “Announcement on Investment and Establishment of a Wholly Owned Subsidiary
2021-049” disclosed in the Securities Times, Hong Kong Commercial Daily and www.cninfo.com. As of the end of the
reporting period, the Company completed the industrial and commercial establishment registration procedures and
received the business license issued by the Hainan Provincial Market Supervision Administration.
3. On March 5, 2021, the Company received the Announcement on Cancellation of 68-Station Co. issued by the Hong
Kong Companies Registry, and 68-Station Co. completed the procedures of its cancellation.
6. Others
Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
IX. Equity in other entities
1. Equity in a subsidiary
(1) Composition of an enterprise group
Main business Place of Nature of Shareholding proportion Way of
Subsidiaries
location registration business Direct Indirect acquisition
Establishment
Harmony Shenzhen Shenzhen Commerce 100.00%
or investment
Precision Establishment
Shenzhen Shenzhen Manufacture 99.00% 1.00%
Technology Co. or investment
the Hong Kong Establishment
Hong Kong Hong Kong Commerce 100.00%
Co. or investment
68-Station Establishment
Hong Kong Hong Kong Commerce 60.00%
Limited or investment
Harmony
Establishment
E-Commerce Shenzhen Shenzhen Commerce 100.00%
or investment
Limited
Science &
Technology Establishment
Shenzhen Shenzhen Manufacture 100.00%
Development or investment
Co.
Establishment
SHIYUEHUI Shenzhen Shenzhen Commerce 100.00%
or investment
Emile Choureit Establishment
Shenzhen Shenzhen Commerce 100.00%
(Shenzhen) or investment
Establishment
The Sales Co. Shenzhen Shenzhen Commerce 100.00%
or investment
Business
combination
Hengdarui Shenyang Shenyang Commerce 100.00%
under the
common control
Business
Switzerland combination not
Switzerland Switzerland Commerce 100.00%
Company under the
common control
Establishment
Xunhang Co. Shenzhen Shenzhen Commerce 100.00%
or investment
HARMONY Establishment
Hainan Hainan Commerce 100.00%
(Hainan) Co. or investment
Note to the proportion of shareholding in a subsidiary different from the proportion of voting power:
Inapplicable
Basis of holding less than a half of the voting power but still controlling the investee and holding more than a half of the
voting power but not controlling the investee:
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Inapplicable
Basis of an important structurized entity being brought to the consolidation scope and being controlled:
Inapplicable
Basis of distinguishing an agent from consignor:
Inapplicable
(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
Shareholding proportion Accounting
Name of joint treatment method for
Main business Place of Nature of
venture or investment in joint
location registration business Direct Indirect
associate ventures or
associates
Shanghai Watch Shanghai Shanghai Commerce 25.00% Equity method
Note to the proportion of the shareholding in a joint venture or an associate different from voting power therein:
Inapplicable
Basis of holding below 20% voting power but having significant influence or holding more than 20% voting power but not
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
having significant influence
Inapplicable
(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
reporting period the reporting period
Current assets 142,602,075.39 142,137,359.85
Non-current assets 12,782,341.54 13,783,021.02
Total assets 155,384,416.93 155,920,380.87
Current liabilities 28,946,536.33 35,999,813.24
Total liabilities 28,946,536.33 35,999,813.20
Equity attributable to the parent 126,437,880.60 119,920,567.63
company’s shareholders
Share of net assets calculated 31,609,470.15 29,980,141.91
according to the shareholding
proportion
Book value of the equity investment in
53,029,994.16 51,400,665.92
associates
Revenue 71,770,916.04 54,674,292.84
Net profit 6,517,312.97 8,643,647.69
Total comprehensive income 6,517,312.97 8,643,647.69
(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
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
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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 main financial instruments of the Group include monetary funds, notes receivable, accounts receivable, other
receivables, investment in other equity instruments, accounts payable, other payables, short-term borrowings, non-current
liabilities due within one year, and long-term loan. The details of various financial instruments has been disclosed in the
relevant notes. The risks involved in these financial instruments and the Group’s risk control policies aiming at reducing
these risks are stated as follows. The Group’s management conducts management and monitoring of these risk exposures
so as to ensure risks to be controlled within a specific limitation.
1. Risk management goals and policies
The goal of the Group's risk management is to achieve an appropriate balance between risks and returns, and strive to
reduce the adverse effects of financial risks on the Group's financial performance. Based on this risk management objective,
the Group has formulated a risk management policy to identify and analyze the risks faced by the Group, set an appropriate
acceptable level of risk and design corresponding internal control procedures to monitor the Group's risk level. The Group
regularly reviewed these risk management policies and related internal control systems to adapt to market conditions or
changes in the Group's operating activities. The Group's internal audit department also regularly or randomly checked
whether the implementation of the internal control system complied with the risk management policy.
The main risks caused by the Group's financial instruments were credit risk, liquidity risk, and market risk (including
exchange rate risk, interest rate risk and commodity price risk).
The Board of Directors is responsible for planning and establishing the Group's risk management structure, formulating the
Group's risk management policies and related guidelines, and supervising the implementation of risk management
measures. The Group has formulated risk management policies to identify and analyze the risks faced by the Group. These
risk management policies clearly stipulate specific risks, covering many aspects such as market risk, credit risk and liquidity
risk management. The Group regularly evaluates the market environment and changes in the Group's operating activities
to determine whether to update the risk management policy and system. The Group's risk management is carried out by the
Risk Management Committee in accordance with the policies approved by the Board of Directors. The Risk Management
Committee works closely with other business departments of the Group to identify, evaluate and avoid related risks. The
internal audit department of the Group conducts regular audits on risk management controls and procedures, and reports
the audit results to the audit committee of the Group.
The Group diversifies the risks of financial instruments through appropriate diversified investment and business portfolios,
and formulates corresponding risk management policies to reduce the risks concentrated in a single industry, a specific
region or a specific counterparty.
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
(1) Credit risk
Credit risk refers to the risk of financial losses incurred to the Group due to the failure of the counterparty to perform the
contractual obligations.
The Group manages credit risk according to portfolio classification. Credit risk mainly arises from bank deposits, notes
receivable, accounts receivable, and other receivables.
The Group's bank deposits are mainly deposited in financial institutions with good reputation and high credit ratings. The
Group expects that there is no significant credit risk for bank deposits.
For notes receivable, accounts receivable and other receivables, the Group has concluded relevant policies to control credit
risk exposure. The Group assesses the credit qualifications of customers based on their financial status, credit records and
other factors such as current market conditions and sets corresponding credit periods. The Group regularly monitors
customer credit records. For customers with poor credit records, the Group uses written reminders, shortens credit periods
or cancels credit periods, etc., to ensure that the overall credit risk of the Group is within the controllable range.
The debtors of the Group's accounts receivable are customers in different sectors and regions. The Group continues to
implement credit assessments on the financial status of accounts receivable and purchase credit guarantee insurance
when appropriate.
The maximum credit risk exposure of the Group is the book value of each financial asset in the balance sheet. The Group
also faces credit risk due to the provision of financial guarantees.
Among the accounts receivable of the Group, the accounts receivable owed by the top five customers accounted for 22.28%
(2020: 31.28%) of the total accounts receivable of the Group; among the other receivables of the Group, the amount owed
by the top five companies accounted for 17.99% of the total other receivables of the Group (2020: 34.96%).
(2) Liquidity risks
Liquidity risk refers to the risk that the Group encounters a shortage of funds when fulfilling its obligations to implement
settlements with cash or other financial assets.
When managing liquidity risks, the member enterprises of the Group are responsible for their cash flow forecasts. The
Group's financial center monitors the long- and short-term fund needs at the Group level based on the cash flow forecast
results of each member enterprise. The Group coordinates and dispatches surplus funds within the Group through the fund
pool plan established in large banking financial institutions, and ensures that each member enterprise has sufficient cash
reserves to fulfill payment obligations due to settlement. In addition, the Group has entered into a financing line credit
agreement with major business banks to provide support for the Group to fulfill its obligations related to commercial papers.
The Group raises working capital through the funds generated from operating business and bank borrowings. As at June
30,2021, the amount of the bank loan not yet used by the Group was CNY 1,188.2539 million (December 31,2020: CNY
1,104.4306 million).
At the end of the reporting period, the financial liabilities held by the Group are analyzed based on the maturity period of the
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
undiscounted remaining contractual cash flows as follows (in CNY 10,000):
Items 6/30/2021
Within 1 year 1 to 2 years 2 to 3 years Over 3 years Total
Financial liabilities:
Short term loans 46,723.58 - - - 46,723.58
Accounts payable 24,265.87 - - - 24,265.87
Other payables 21,988.61 - 106.94 414.10 22,509.64
Non-current liabilities 36.12 - - - 36.12
due within a year
Long-term Loan 379.25 3.68 - - 382.93
Total financial 93,393.42 3.68 106.94 414.10 93,918.14
liabilities
At the beginning of the reporting period, the financial liabilities held by the Group are analyzed based on the maturity period
of the undiscounted remaining contractual cash flows as follows (in CNY 10,000):
Items 12/31/2020
Within 1 year 1 to 2 years 2 to 3 years Over 3 years Total
Financial liabilities:
Short term loans 55,023.98 - - - 55,023.98
Notes payable 358.14 358.14
Accounts payable 30,121.15 - - - 30,121.15
Other payables 12,693.81 - 163.95 12,857.76
Non-current liabilities 38.11 - - - 38.11
due within a year
Long-term Loan 13.33 419.24 - 432.57
Total financial 98,248.52 419.24 163.95 - 98,831.71
liabilities
The amount of financial liabilities disclosed in the above table is the undiscounted contract cash flow, and therefore may be
different from the book amount in the balance sheet.
(3) Market Risks
The market risk of financial instruments refers to the risk of fluctuations in the fair value or future cash flows of financial
instruments due to changes in market prices, including interest rate risk, exchange rate risk and other price risks.
Interest rate risk
Interest risk is the risk that the fair value of a financial instrument or future cash flow will fluctuate because of change in
market interest rate. Interest rate risk may originate from the recognized interest-bearing financial instruments and
unrecognized financial instruments (such as certain loan commitments).
The interest rate risk of the Group mainly arises from interest-bearing debts such as short-term bank borrowings and
long-term bank borrowings. Financial liabilities with floating interest rate expose the Group to cash flow interest rate risk,
and financial liabilities with fixed interest rate expose the Group to fair value interest rate risk. The Group determines the
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
relative proportions of fixed-rate and floating-rate contracts based on the prevailing market environment, and maintains an
appropriate combination of fixed and floating-rate instruments through regular reviews and monitoring.
The Group pays close attention to the impact of interest rate changes on the Group's interest rate risk. The Group currently
does not adopt an interest rate hedging policy. However, the management is responsible for monitoring interest rate risks
and will consider hedging significant interest rate risks when necessary. Rise of interest rates may increase the cost of new
interest-bearing liabilities and have a significant adverse impact on the Group’s financial performance. The management
may make timely adjustments based on the latest market conditions. These adjustments may be through interest rate swap
arrangements to lower the risk of interest rates.
The interest-bearing financial instruments held by the Group are as follows (in CNY10,000):
Items Amount in the reporting year Amount in the previous year
Financial instruments with fixed interest rate
Financial liabilities:
Including: short-term loan 45,960.97 27,539.02
Long-term Loan 405.49 444.04
Sub-total 46,366.46 27,983.06
Financial instruments with floating interest rate
Financial liabilities
Including: short-term loan 25,000.00
Total 46,366.46 52,983.06
For financial instruments held on the balance sheet date that expose the Group to fair value interest rate risk, the impact of
net profit and shareholders’ equity in the above sensitivity analysis is based on the assumption that the interest rate
changes on the balance sheet date and is the impact of the new interest rate on the aforesaid financial instrument after
remeasurement is carried out. For non-derivative instruments with floating interest rates held on the balance sheet date that
expose the Group to cash flow interest rate risk, the impact of the above-mentioned sensitivity analysis on net profit and
shareholders’ equity is the impact of the change of the above-mentioned interest rate on the annual estimated interest
expense or income. The analysis of the previous year was based on the same assumptions and methods.
Exchange rate risk
Exchange rate risk is the risk that the fair value of a financial instrument or future cash flow will fluctuate because of change
in market exchange rate. Exchange rate risk can be derived from financial instruments denominated in foreign currencies
other than the functional currency.
Exchange rate risk is mainly due to the impact of fluctuations in foreign exchange rates on the Group's financial status and
cash flows. Except for the subsidiary established in Hong Kong holding Hong Kong dollars as the settlement currency, and
a sub-subsidiary established in Switzerland holding assets with Swiss Francs as the settlement currency, other major
business activities of the Group are mainly settled in Renminbi. However, the Group's confirmed foreign currency assets
and liabilities and future foreign currency transactions still expose to foreign exchange risks.
As of June 30, 2021, the amounts of foreign currency financial assets and foreign currency financial liabilities held by the
Group converted into Renminbi are listed as follows (in CNY 10,000)：
Items Foreign currency Foreign currency
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
liabilities assets
Amount at the end of Amount at the beginning Amount at the end of Amount at the
the reporting period of the reporting period the reporting period beginning of the
reporting period
USD 12.15 - 2,123.70 2,366.05
HKD 472.78 179.63 2,182.98 1,774.03
SF 576.06 1,005.75 484.46 1,974.28
Euro 0.12 - 239.86 164.13
JP Yen 88.08 -
GBP - 13.92
Total 1,149.19 1,185.38 5,044.91 6,278.49
The Group pays close attention to the impact of exchange rate changes on the Group's exchange rate risk. The Group has
not taken any measures to avoid foreign exchange risks at present. However, the management is responsible for
monitoring exchange rate risks and will consider hedging significant exchange rate risks when necessary.
As of June 30, 2021, for monetary funds, bank borrowings, and other financial instruments of the Group denominated in
foreign currencies, it is assumed that if Renminbi appreciates or depreciates against foreign currencies (mainly against US
Dollar, Hong Kong Dollar and Swiss Franc) by 5% with other factors remaining unchanged, it will result in an increase or
decrease in the Group’s shareholders’ equity and net profit by approximately CNY 1,947,900 (December 31, 2020:
approximately CNY 2,546,600).
2.Capital management
The goal of the Group’s capital management policy is to ensure the Group able to continue to operate, thereby providing
returns to the shareholders and benefiting other stakeholders, while maintaining the best capital structure to reduce the
cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust financing method, adjust the amount of dividends
paid to shareholders, return capital to shareholders, issue new shares and other equity instruments, or sell assets to reduce
debts.
The Group monitors the capital structure based on the asset-liability ratio (that is, total liabilities divided by total assets). As
of June 30, 2021, the Group's asset-liability ratio was 30.74% (December 31, 2020: 30.33%).
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
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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
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 Ratio of vote right
Name of the parent Place of of the parent of the parent
Nature of business Registered capital
company registration company in the company in the
Company Company
Investment in
industries,
AVIC IHL Shenzhen domestic trade, 116,616.20 37.42% 37.42%
material supply
and distribution
Note to the parent company:
AVIC IHL is a subsidiary 100% indirectly held by AVIC International Holding Corporation (AVIC International). Aviation
Industry Corporation of China, Ltd. (AVIC) directly holds 91.13% of shares in AVIC International (with the eventual
beneficiary equity by 91.897%), therefore, the eventual controller of the Company is AVIC.
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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
Inapplicable
4. Other related parties
Names of other related parties Relationship between other related parties and the Company
AVIC Property Management Co., Ltd. (AVIC Property) An associate of the Controlling Shareholder
Shenzhen AVIC Building Technology Co., Ltd. (AVIC Building) An associate of the Controlling Shareholder
Shenzhen AVIC Nanguang Elevator Co., Ltd. (AVIC Nanguang ) An associate of the Controlling Shareholder
China Merchants Property Operation & Service Co., Ltd. (China
An associate of the Controlling Shareholder
Merchants Property)
Shenzhen AVIC Guanlan Real Estate Development Co., Ltd. (AVIC
An associate of the Controlling Shareholder
Guanlan Real Estate)
China Merchants 9 Square Commercial Management (Shenzhen) Ltd.
An associate of the Controlling Shareholder
(9 Square Assets)
Shenzhen AVIC City Investment Co., Ltd.(AVIC City Investment) An associate of the Controlling Shareholder
Ganzhou CATIC 9 Square Commerce Co., Ltd. (Ganzhou 9 Square) An associate of the Controlling Shareholder
AVIC City Property (Kunshan) Co., Ltd. (AVIC City Property (Kunshan) ) An associate of the Controlling Shareholder
Shenzhen AVIC Security Service Co., Ltd. (AVIC Security Service) An associate of the Controlling Shareholder
Jiujiang 9 Square Commerce Management Co., Ltd. (9 Square
An associate of the Controlling Shareholder
Commerce Management)
Shenzhen AVIC Real Estate Development Co., Ltd. (AVIC Real
An associate of the Controlling Shareholder
Estate)
Shaanxi Baocheng Aviation Instruments Co., Ltd. (Shaanxi
Controlled by the same party
Baocheng)
Rainbow Digital Commercial Co., Ltd. (RAINBOW) Controlled by the same party
Shennan Circuit Co., Ltd. (Shennan Circuit) Controlled by the same party
AVIC Lutong Company Limited. (AVIC Lutong) Controlled by the same party
AVIC International Aero-Development Corporation (AVIC
Controlled by the same party
Aero-Development)
AVIC Huadong Photoelectric Co., Ltd. (Huadong Photoelectric) Controlled by the same party
AVIC Flight Automatic Control Research Institute (FACRI) Controlled by the same party
Nanjing Engineering Institute of Aircraft Systems (NEIAS) Controlled by the same party
AVIC Industry Supply and Marketing Co., Ltd. (AVIC Industry Supply &
Controlled by the same party
Marketing)
AVIC Hubei Steel Special Steel Sales Co., Ltd. (AVIC Hubei Steel) Controlled by the same party
AVIC (Chengdu) UAV System Co., Ltd. (AVIC UAV) Controlled by the same party
Harbin Hafei Aviation Industry Co., Ltd.（Hafei Aviation） Controlled by the same party
Shenzhen AVIC Grand Skylight Hotel Management Co., Ltd. (Grand Controlled by the same party
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Skylight Hotel Management)
Shenzhen AVIC City Commerce Development Co., Ltd. (AVIC City
Controlled by the same party
Commerce Development)
Shenzhen AVIC Center Commerce Development Co., Ltd. (AVIC
Controlled by the same party
Center Commerce Development)
Tianma Micro-electronics Co., Ltd. (SHEN TIANMA) 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 Training Center (AVIC Training Center) Controlled by the same party
AVIC Finance Co., Ltd. (AVIC Finance ) Controlled by the same party
Shenzhen AVIC Grand Skylight Hotel Co., Ltd. (Grand Skylight Hotel) Controlled by the same party
Gongqingcheng CATIC Cultural Investment Co., Ltd. (Gongqingcheng
Controlled by the same party
CATIC Cultural Investment)
AVIC International Simulation Technology Service Co., Ltd. (AVIC
Controlled by the same party
International Simulation)
AVIC Jonhon Optronic Technology Co.,Ltd. (AVIC Optronic) Controlled by the same party
AVIC General Aircraft Co., Ltd. Zhuhai Composite Material
Controlled by the same party
Technology Branch (AVIC General Aircraft Zhuhai Branch)
AVIC IHL (Zhuhai) Limited (AVIC IHL (Zhuhai)) Controlled by the same party
China National Aero-Technology Import & Export Corporation (CATIC) Controlled by the same party
Director, Manager, Chief Financial Officer and Secretary of the Board of
A senior executive
the Company
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
Description of
Amount incurred in Transaction quota as Has it exceeded the Amount incurred in the
Related parties Related
the reporting period approved transaction quota previous period
Transactions
Water & power
AVIC Property supply and property 5,394,418.03 18,000,000.00 No 5,938,619.97
management fee
Shopping mall
Rainbow Ltd. fees/purchase of 2,662,052.00 10,000,000.00 No 2,389,264.94
goods
AVIC Training Center Training fee -2,298.55 500,000.00 No
Ganzhou 9 Square Shopping mall fees 89,105.10 2,000,000.00 No 92,549.84
9 Square Commerce
Shopping mall fees 42,485.78 43,147.68
Management Co., Ltd.
SHEN TIANMA Procurement of 31,309.90
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
goods
AVIC Building Co. Refurbishment 32,924.52 32,924.52
AVIC City Commerce
Shopping mall fees 19,346.13
Development
Elevator
AVIC Nanguang 122,830.20 122,830.20
maintenance
Statement of sales of goods/supply of 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 42,139,011.64 29,669,833.80
Ganzhou 9 Square Products and labor services 8,748.67
Sales of materials and supply of
Shennan Circuit 1,356,891.42 3,086,589.15
services
Gongqingcheng CATIC Cultural
Sales of products 307,621.86 182,271.24
Investment
AVIC International Sales of products 8,610.61 4,424.78
AVIC City Commerce Development Sales of products 94,585.88
Shanghai Watch Industry Sales of products 1,812,292.04
Huadong Photoelectric Sales of products 247,787.61
AVIC Supply & Marketing Sales of products 7,079.65
AVIC Aviation Development Sales of products 140,884.97
AVIC Lutong Sales of products 14,123.89
AVIC Nanjing Electro-Mechanical
Sales of products 176,991.15
Research Center
FACRI Sales of products 7,061.95
AVIC International Simulation Sales of products 60,530.97
AVIC Optronic Sales of products 346,870.70
AVIC General Aircraft Zhuhai
Sales of products 17,699.13
Branch
AVIC IHL (Zhuhai) Sales of products 10,592.92
CATIC Sales of products 105,929.20
Note to the related transactions of purchase and sale of commodities and supply and acceptance of labor services
(1)The Group adopts market price for its pricing policy for related transactions;
(2)The above transaction volume does not include tax amount.
(2) Related entrusted management/contracted and mandatory management/contracting
Inapplicable
(3) Related lease
The Company as lessor:
In CNY
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Categories of leasehold Rental income recognized in Rental income recognized in
Names of lessees
properties the current period the previous period
AVIC Property Housing 5,721,901.64 6,196,298.09
CMPO Housing 972,906.73
AVIC City Investment Housing 139,986.58
AVIC Securities Housing 681,600.00 657,257.16
Rainbow Ltd. Housing 548,843.48 696,114.82
9 Square Assets Housing 1,042,900.03
CATIC Public Security
Housing 399,724.38 502,635.07
Service Co.
Guanlan Real Estate Housing 69,993.29
AVIC Real Estate Housing 140,569.86
The Company as lessee:
In CNY
Categories of leasehold Rental fee recognized in Rental fee recognized in
Names of lessees
properties the current period the previous period
Ganzhou 9 Square Housing 475,674.30 449,741.52
AVIC City Property
Housing 68,571.42
(Kunshan)
9 Square Commerce
Housing 290,728.10 192,860.44
Management Co., Ltd.
AVIC City Commerce
Housing 68,807.29
Development
Note to the related lease
(1)The Group adopts market price for its pricing policy for related transactions;
(2)The above transaction volume does not include tax amount.
(4) Related guarantee
Inapplicable
(5) Borrowings and lendings among related parties
Inapplicable
(6) Assets assignment and liabilities reorganization of related parties
Inapplicable
(7)Remuneration to senior executives
Inapplicable
(8) Other related transactions
The Company’s deposit balance deposited with AVIC Finance at the end of the current year amounted to CNY
155,266,966.15, of which the deposit interest received during the year amounted to CNY 244,618.36.
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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
Notes receivable:
Shennan Circuit 973,731.59 5,083,025.01
Shaanxi Baocheng 50,000.00 2,500.00
Accounts
receivable:
Rainbow Ltd. 7,097,155.30 153,922.94 9,489,446.66 285,632.34
Shennan Circuit 480,325.88 24,016.30 1,370,425.31 41,249.80
Ganzhou 9 Square 3,500.00 175.00
Gongqingcheng
CATIC Cultural 52,299.70 2,614.99 58,834.76
Investment
AVIC Property 183,809.37 12,541.06 40,947.74
HAFEI Aviation 20,130.00 605.91
CATIC Public
Security Service 0.27 0.01
Co.
AVIC Optronic 391,963.89 19,598.19
AVIC General
Aircraft Zhuhai 20,000.00 1,000.00
Branch
Other receivables
Rainbow Ltd. 1,010,955.00 50,547.75 1,064,073.00 45,648.73
Ganzhou 9 Square 192,064.00 9,603.20 189,432.77 8,126.67
AVIC City Property
56,000.00 2,800.00 40,000.00 1,716.00
(Kunshan)
Gongqingcheng
CATIC Cultural 7,462.00 320.12
Investment
9 Square
Commerce
50,000.00 2,500.00 50,000.00 2,145.00
Management Co.,
Ltd.
AVIC IHL 11,101.80 476.27
AVIC Training
2,464.00 74.17
Center
(2) Payables
In CNY
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Project name Related parties Ending book balance Opening book balance
Other payables: AVIC Property 2,298,674.20 1,717,018.14
CMPO 442,407.92
AVIC City Investment 309,732.00
AVIC Securities 238,560.00 238,560.00
AVIC Building Co. 31,270.67 47,732.93
Rainbow Ltd. 144,651.82 257,490.98
AVIC Real Estate 51,014.88
Guanlan Real Estate 25,401.60
CATIC Public Security
226,603.44 226,603.44
Service Co.
AVIC Nanguang 25,179.84
Advance receipts: Huadong Photoelectric 10,500.00
AVIC Securities 119,280.00
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
7,660,000.00
during the reporting period
Total amount of various equity instruments of the Company
1,357,641.00
exercisable during the reporting period
Total amount of various equity instruments of the Company expired
0.00
during the reporting period
The exercise price of restricted stocks in the first
phase: CNY 4.4/share, and the remaining unlocked
shares shall be unlocked in January 2022 and
The scope of the exercise price of stock options issued at the end of January 2023 respectively; the exercise price of
the reporting period and the remaining time of the contract restricted stocks in the second phase: CNY 7.6
/share, and the remaining unlocked shares shall be
unlocked in January 2023, January 2024, and
January 2025, respectively.
The scope of the exercise price of other equity instruments issued at
the end of the reporting period and the remaining time of the Inapplicable
contract
2. Stock payment for equity settlement
In CNY
Method for determining the fair value of equity instruments Closing price of the Company's stock on the grant date
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
granted
Employee service period, achievement rate of
Basis for determining the quantity of exercisable equity
performance indicators, and employee individual
instruments
performance evaluation result
Cause of significant difference between the estimation of the
Inapplicable
reporting period and that of the previous period
Accumulated amount of the equity-settled share-based
81,004,836.53
payment counted to the capital reserve
Total expenses recognized in the equity-settled share-based
6,158,808.77
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
Implementation of irrevocable operating lease contract signed by the Company ended the balance sheet date is as follows:
Minimum rent payment for irrevocable operational Ending balance Opening balance
lease
1st year after the balance sheet day 82,187,671.26 81,612,695.21
2nd year after the balance sheet day 40,485,074.22 37,104,794.98
3rd year after the balance sheet day 17,360,276.92 16,579,529.38
Subsequent years 7,911,129.31 3,567,104.00
Total 147,944,151.72 138,864,123.57
2. Contingencies
(1) Significant contingencies existing as at the balance sheet day
As of June 30, 2021, the guarantees within the Group are as follows:(In CNY 10,000):
Guarantees Guarantors Guarantees Credit line Used credit line Effective date Expiring date
The 30,000.00 10,000.00 December 30, 2020 December 29, 2021
L/G
Company
Harmony
The 20,000.00 5,000.00 October 01, 2020 December 31, 2021
L/G
Company
Science & 486.00 April 21, 2020 April 19, 2021
The Notes
Technology 3,000.00 315.00 June 23, 2021 June 02, 2022
Company discounted
Development
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Co.
Total 53,000.00 15,801.00
(2) Important contingencies unnecessary to be disclosed but necessary to be explained
Inapplicable
3. Others
Inapplicable
XV. Events after balance sheet day
1. Significant non-adjustment events
Inapplicable
2. Profit distribution
In CNY
Profit or dividend to be distributed 174,220,065.73
Profit or dividend announced to be distributed after review and
174,220,065.73
approval
3. Sales return
Inapplicable
4. Note to other matters after the balance sheet date
(1) Restricted Stock Incentive Plan
On July 1, 2021, the Company’s 2021 3rd Extraordinary General Meeting reviewed and approved the “Proposal on
Repurchase and Cancellation of Part of the Restricted A-Shares Stock Incentive Plan in 2018 (Phase I)”, and decided to
repurchase and cancel 33,350 A-share restricted stocks which have been held by the original incentive object who has
resigned and have been granted but have not yet lifted the restriction on sales at a repurchase price of CNY 3.60per
share; reviewed and approved the "Proposal on Repurchase and Cancellation of Part of the Restricted A-Shares Stock
Incentive Plan in 2018 (Phase II)", and and decided to repurchase and cancel 100,000 restricted A-share restricted stocks
which have been held by the original incentive object who has been retired and have been granted but have not lifted the
restriction on sales at the repurchase price of CNY 7.20 per share. As of a trading day before the disclosure, the procedures
for the repurchase and cancellation of the relevant A-share restricted stocks has not been completed.
On July 1, 2021, the 31st session of the Ninth Board of Directors and the 27th session of the Ninth Supervisory Committee
reviewed and approved the “Proposal on Repurchase and Cancellation of Part of the Restricted A-Shares Stock Incentive
Plan in 2018 (Phase I)”, according to which the Company intended to repurchase and cancel a total of 66,700 A-share
restricted shares that were granted with the restriction not released to 1 retired former incentive objects at the repurchase
price of CNY 3.60/share. The proposal still needs to be submitted to the Company's General Meeting for discussion and
approval.
On July 06, 2021, the Company completed the procedures of repurchase and cancellation of 40,020 A-share restricted
stocks which have been held by 2 original incentive objects who have been retired and have been granted but have not
yet lifted the restriction on sales; and on the same day, the Company completed the procedures of repurchase and
cancellation of 120,000 A-share restricted stocks which have been held by 3 original incentive objects who have been
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
retired and have been granted but have not yet lifted the restriction on sales involved in the Restricted A-Shares Stock
Incentive Plan in 2018 (Phase II). After cancellation of the repurchased shares, the total capital stock of the Company
decreased from 435,550,522 shares to 435,390,502 shares.
On August 18, 2021, the 32nd session of the Ninth Board of Directors and the 28th session of the Ninth Supervisory
Committee reviewed and approved the “Proposal on Repurchase and Cancellation of Part of the Restricted A-Shares
Stock Incentive Plan in 2018 (Phase I)”, according to which the Company intended to repurchase and cancel a total of
35,351 A-share restricted shares that were granted with the restriction not released to 2 retired former incentive objects at
the repurchase price of CNY 3.60/share. The proposal still needs to be submitted to the Company's General Meeting for
discussion and approval.
On August 18, 2021, the 32nd session of the Ninth Board of Directors and the 28th session of the Ninth Supervisory
Committee reviewed and approved the “Proposal on Repurchase and Cancellation of Part of the Restricted A-Shares
Stock Incentive Plan in 2018 (Phase I)”, according to which the Company intended to repurchase and cancel a total of
110,000 A-share restricted shares that were granted with the restriction not released to 2 retired former incentive objects at
the repurchase price of CNY 7.20/share. The proposal still needs to be submitted to the Company's General Meeting for
discussion and approval.
(2) Repurchase of shares
The 7th session of the Ninth Board of Directors held on July 06, 2020 and 2020 2nd Extraordinary General Meeting held
on July 23, 2020, reviewed and approved the “Proposal for the Repurchase of Partial Domestically Listed Foreign
Shares in the Company (B-shares)”. As of July 22, 2021 when the stock repurchase deadline expired, 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 2.07% of the Company’ 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 transaction cost exclusive). As of August 3, 2021, the cancellation of the
Company's share repurchase was completed, and the Company's total share capital has been reduced from 435,390,502
shares to 426,396,416 shares.
(3) Change of the members of the Board of Directors and the Supervisory Committee
2021 3rd Extraordinary General Meeting held on July 1, 2021 reviewed and passed the "Proposal on the Proposed Change
of Directors” according to which Mr. Zhang Xuhua was elected a nonb-independent director 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. On the same day, after review and approval at the 31st session of the Ninth Board of Directors of the Company,
Director Mr. Zhang Xuhua was elected as the Chairman of the Board 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.
The 32nd session of the Ninth Board of Directors of the Company held on August 18, 2021 reviewed and approved the
“Proposal on the Election of Non-Independent Directors for the Company's New Board of Directors” and the “Proposal
on the Election of Independent Directors for the Company's New Board of Directors.”Given that the term of the Company’
s Ninth Board of Directors is going to expire on September 11, 2021, according to relevant regulations, AVIC IHL, the
Company’s controlling shareholder, nominated Mr. Zhang Xuhua, Mr. Xiao Yi, Mr. Xiao Zhanglin, Mr. Li Peiyin, Mr. Deng
Jianghu, and Mr. Pan Bo as candidates for non-independent directors of the Company's Tenth Board of Directors; the
Board of Directors is going to nominate Mr. Wang Jianxin, Mr. Zhong Hongming, and Mr. Tang Xiaofei as candidates for
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
independent directors of the Company's Tenth Board of Directors. The above two proposals still need to be submitted to the
Company’s General Meeting for deliberation, and the qualification and independence of independent director candidates
need to be filed with the Shenzhen Stock Exchange before voting at the General Meeting.
The 28th meeting of the Ninth Supervisory Committee of the Company held on August 18, 2021, reviewed and approved
the “Proposal on the Election for the New Supervisory Committee of the Company". According to relevant regulations,
AVIC IHL, the Company’s controlling shareholder, nominated Mr. Zheng Qiyuan and Ms. Cao Zhen as candidates of
non-employee supervisors of the 10th Supervisory Committee of the Company. The proposal still needs to be submitted to
the Company's General Meeting for discussion and approval.
(4) Change of the Accounting Firm
The 32nd Session of the Ninth Board of Directors and the 28th Session of the Ninth Supervisory Committee reviewed and
approved the "Proposal on Change of the Accounting Firm". As the employment term of Grant Thornton LLP as the
Company's auditor expired, according to the Company's business development needs, in order to better promote the
development of audit work, after comprehensive evaluation and prudent consideration, the Company plans to employ
Dahua accounting firm (special general partnership) as the Company's auditor of the financial statements and internal
control. The proposal still needs to be submitted to the Company's General Meeting for discussion and approval.
(5) Related transactions
The 32nd session of the 9th Board of Directors and the 28th session of the 9th Supervisory Committee held on August 18,
2021, reviewed and approved the “Proposal on Signing a Financial Service Agreement with AVIC Finance Co., Ltd.”, and
decided to terminate the previous agreement with AVIC Finance and re-sign the “Financial Service Agreement”. The
proposal still needs to be submitted to the Company's General Meeting for discussion and approval.
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. Annuity plan
Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
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 Book
Provision Provision Book value
Amount Proportion Amount value Amount Proportion Amount
proportion proportion
Including:
Accounts receivable for
which bad debt reserve 3,532,773 424,515.0 3,108,258. 1,776,602.
100.00% 12.02% 100.00% 311,803.32 17.55% 1,464,798.79
has been provided .98 5 93 11
based on portfolios
Including:
Accounts receivable 3,532,773 424,515.0 3,108,258. 1,776,602.
100.00% 12.02% 100.00% 311,803.32 17.55% 1,464,798.79
from other customers .98 5 93 11
3,532,773 424,515.0 3,108,258. 1,776,602.
Total 100.00% 12.02% 100.00% 311,803.32 17.55% 1,464,798.79
.98 5 93 11
Individual provision for bad and doubtful debts:
Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Bad debt reserve provided based on portfolio: Accounts receivable from other customers
In CNY
Ending balance
Name
Book balance Bad debt reserve Provision proportion
Accounts receivable from
3,532,773.98 424,515.05 12.02%
other customers
Total 3,532,773.98 424,515.05 --
Note to the basis for determining the combination:
Inapplicable
Provision for bad and doubtful debts based on portfolio:
Inapplicable
If the provision for bad debts of accounts receivable is accrued in accordance with the general expected credit loss model,
please refer to the disclosure of other receivables to disclose the relevant information of the provision for bad debts:
Inapplicable
Disclosed based on aging
In CNY
Aging Ending balance
Within 1 year (with 1 year inclusive) 3,335,859.99
1 to 2 years 196,913.99
Total 3,532,773.98
(2) Bad debt provision accrual, received or reversed in the reporting period
Provision for bad debt during the reporting period
In CNY
Amount of movement during the reporting period
Opening Amount
Categories Ending balance
balance Provision recovered or Written-off Others
reversed
Bad debt
311,803.32 112,711.73 424,515.05
reserve
Total 311,803.32 112,711.73 424,515.05
Where the significant amount of the reserve for bad debt recovered or reversed:
Inapplicable
(3) Accounts receivable actually written off in current period
Inapplicable
(4) Accounts receivable owed by the top five debtors based on the ending balance
In CNY
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Proportion in total ending
Ending balance of the Ending balance of the
Description of Unit balance of accounts
accounts receivable provision for bad debts
receivable
Ending balance owed by the
top five customer debtors 2,465,100.24 69.78% 168,190.34
based on the ending balance
Total 2,465,100.24 69.78%
(5) Account receivable with recognition terminated due to transfer of financial assets
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 578,424,821.93 621,512,680.69
Total 578,424,821.93 621,512,680.69
(1) Interest receivable
1) Classification of interest receivable
Inapplicable
2) Significant overdue interest
Inapplicable
3) Provision for bad debts
Inapplicable
(2) Dividends receivable
1) Classification of dividends receivable
Inapplicable
2) Significant dividends receivable with age exceeding 1 year
Inapplicable
3) Provision for bad debts
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
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Dealings among related parties within
574,537,694.12 620,792,324.27
the consolidation scope
Security deposit 3,277,526.90 217,525.90
Employees’ social security premium
81,249.56 392,074.21
reimbursed
Others 728,660.73 196,662.43
Total 578,625,131.31 621,598,586.81
2) Provision for bad debts
In CNY
Stage 1 Stage 2 Stage 3
Expected credit loss in Expected credit loss in
Expected credit
Bad debt reserve the whole duration (no the whole duration (credit Total
loss in future 12
credit impairment impairment already
months
incurred) incurred)
Balance as at January
85,906.12 85,906.12
1, 2021
Balance as at January
1, 2021 in the reporting —— —— —— ——
period
Provision in the
114,403.26 114,403.26
reporting period
Balance as at June 30,
200,309.38 200,309.38
2021
Provision for loss - Change of the book balance with significant amount during the reporting period
Inapplicable
Disclosed based on aging
In CNY
Aging Ending balance
Within 1 year (with 1 year inclusive) 578,388,773.78
1 to 2 years 195,711.90
2 to 3 years 595.63
Over 3 years 40,050.00
3 to 4 years 0.00
4 to 5 years 0.00
Over 5 years 40,050.00
Total 578,625,131.31
3) Bad debt provision accrual, received or reversed in the reporting period
Inapplicable
4) Other receivables actually written off in the reporting period
Inapplicable
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
5) Other receivables owed by the top five debtors based on the ending balance
In CNY
Proportion in total Ending balance of
Description of Unit Nature of Payment Ending balance Aging ending balance of the provision for
other receivables bad debts
Accounts receivable
owed by the top five Current accounts,
577,047,481.52 Within 1 year 99.73% 145,000.05
debtors based on etc.
the ending balance
Total -- 577,047,481.52 -- 99.73% 145,000.05
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
3. Long-term equity investments
In CNY
Ending balance Opening balance
Items Impairment Impairment
Book balance Book value Book balance Book value
reserve reserve
Investment in 1,482,456,650.5 1,482,456,650.5 1,478,014,522.3 1,478,014,522.3
subsidiaries 5 5 6 6
Investment in
associates and 53,029,994.16 53,029,994.16 51,400,665.92 51,400,665.92
joint ventures
1,535,486,644.7 1,535,486,644.7 1,529,415,188.2 1,529,415,188.2
Total
1 1 8 8
(1) Investment in subsidiaries
In CNY
Opening Increase/ Decrease (+ / -) in the reporting period Ending balance
Ending balance
Investees balance (book Additional Decrease of Provision for of the provision
Others (book value)
value) investment investment impairment for impairment
Harmony 604,067,211.20 1,849,555.21 605,916,766.41
Harmony
E-Commerce 11,684,484.39 11,684,484.39
Limited
Precision
99,800,505.05 706,501.43 100,507,006.48
Technology Co.
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Science &
Technology 50,245,552.53 285,905.92 50,531,458.45
Development Co.
the Hong Kong
137,737,520.00 137,737,520.00
Co.
SHIYUEHUI 5,000,000.00 5,000,000.00
The Sales Co. 453,130,819.72 1,279,470.28 454,410,290.00
Hengdarui 36,867,843.96 36,867,843.96
Emile Choureit
79,480,585.51 320,695.35 79,801,280.86
(Shenzhen)
1,478,014,522.3 1,482,456,650.5
Total 4,442,128.19
6 5
(2) Investment in associates and joint ventures
In CNY
Increase/ Decrease (+ / -) in the reporting period
Income Ending
Announce
Opening from equity Other Ending balance of
d for
balance Decrease investment comprehe Other Provision balance the
Investees Additional distributing
(book of recognized nsive equity for Others (book provision
investment cash
value) investment under income movement impairment value) for
dividend or
equity adjustment impairment
profit
method
I. Joint Venture
II. Associates
Shanghai
Watch 51,400,66 1,629,328. 53,029,99
Industry 5.92 24 4.16
Co., Ltd.
51,400,66 1,629,328. 53,029,99
Sub-total
5.92 24 4.16
51,400,66 1,629,328. 53,029,99
Total
5.92 24 4.16
(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 Cost Income Cost
Principal business 82,132,996.59 17,699,646.51 57,329,018.41 17,626,390.24
Other businesses 4,601,153.13 0 -15,800.00 0
Total 86,734,149.72 17,699,646.51 57,313,218.41 17,626,390.24
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
Information in connection with the revenue:
In CNY
Classification of
Segment 1 Segment 2 Total
Contracts
Including:
Leases 82,132,996.59 82,132,996.59
Others 4,601,153.13 4,601,153.13
Including:
Northwest China 10,780,902.77 10,780,902.77
South China 75,953,246.95 75,953,246.95
Information concerning obligation performance:
The Company's income is mainly lease income. During each period of the lease term, the current profit and loss are
recognized according to the straight-line method.
Information related to the transaction price allocated to the remaining obligations performance:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations of the contracts
which have been signed, but not yet performed or not yet completed is CNY 0.00, of which CNY 0.00 is expected to be
recognized as revenue in the year, CNY 0.00 is expected to be recognized as revenue in the year, and CNY 0.00 is
expected to be recognized as revenue in the year. Inapplicable
5. Return on investment
In CNY
Amount incurred in the reporting
Items Amount incurred in the previous period
period
Income from long term equity investment
1,629,328.24 2,160,911.92
based on equity method
Total 1,629,328.24 2,160,911.92
6. Others
Inapplicable
XVIII. Supplementary information
1. Statement of non-recurring gains and losses in the reporting period
In CNY
Items Amount Notes
1. Gain/Loss from disposal of
-73,807.46
non-current assets
The government subsidies included
in the profits and losses of the current
period ( (excluding government grants
12,113,496.28
which are closely related to the
Company’s business and conform with
the national standard amount or quantity)
Reversal of the impairment 976,332.27
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
provision for receivables and contract
assets which have been tested
individually for impairment
Other non-operating income and
-587,690.85
expenses other than the aforesaid items
Less: Amount affected by the income tax 2,679,837.11
Total 9,748,493.13 --
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 earning per Diluted earning per
share (CNY/share) share (CNY/share)
Net profit attributable to the 0.5421 0.5421
Company’s shareholders of 8.09%
ordinary shares
Net profit attributable to the
Company’s shareholders of
7.76% 0.5192 0.5192
ordinary shares less
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
FIYTA Precision Technology Co., Ltd. 2021 Semi-annual Report, Full Text
FIYTA Precision Technology Co., Ltd.
Board of Directors
August 20, 2021
