FIYTA Holdings Ltd. 2013 Semi-Annual Report
FIYTA Holdings Ltd.
2013 Semi-Annual Report
August, 2013
1
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Section 1 Important Notice, Table of Contents and Definitions
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.
With the exception of the director listed in the following table, all other directors personally
attended the board meeting for review of the semi-annual report
Name of the director(s) Title held by of the
absent from the director(s) absent from Reason of the absence Name of the proxy
meeting the meeting
Wu Xiaohua Director Business trip Lai Weixuan
The Company is not going to conduct interim dividend distribution, bonus share distribution or
conversion of reserve into share capital.
Mr. Lai Weixuan, the Company leader, Mr. Li Dehua, chief financial officer and the Mr. Hu
Xinglong, the person in charge of the accounting department (the person in charge of the
accounting) hereby confirm the authenticity and completeness of the financial report enclosed in
this annual report.
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
Table of Contents
2013 Semi-Annual Report
Section 1 Important Notice, Table of Contents and Definitions
Section 2 Company Profile
Section 3 Financial and Business Highlights
Section 4 Report of the Board of Directors
Section 5 Significant Events
Section 6 Change of Shares and Particulars about the Shareholders
Chapter 7 Directors, Supervisors and Senior Executives
Section 8 Financial Report
Section 9 List of Documents Available for Inspection
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
Definitions
Terms to be defined Refers to Definition
This Company, the Company or Fiyta Refers to FIYTA Holdings Ltd.
AVIC International Holdings Refers to AVIC International Holdings Limited
HARMONY Refers to Shenzhen Harmony World Watches Center Co., Ltd.
Rainbow Supermarket Refers to Rainbow Supermarket Co., Ltd.
CATIC Real Estate Refers to CATIC Real Estate Co., Ltd.
CATIC Property Refers to CATIC Property Management Co., Ltd.
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
Section 2 Company Profile
I. Company Profile
Short form of the
FIYTA A, FIYTA B Stock Code 000026 and 200026
stock
Stock Exchange
Shenzhen Stock Exchange
Listed with
Company Name in
飞亚达（集团）股份有限公司
Chinese
Short form of
company name in 飞亚达公司
Chinese (if any)
Company Name in
English (if any) FIYTA HOLDINGS LTD.
Short Form of
Company Name in FIYTA
English (if any)
Legal Representative Lai Weixuan
of the Company
II. Liaison Person and Way of Communication
Secretary of the Board Securities Affairs Representative
Names Chen Libin Zhang Yong
20th Floor, FIYTA Technology 20th Floor, FIYTA Technology
Liaison Address Building, Gaoxin S. Road One, Building, Gaoxin S. Road One,
Nanshan District, Shenzhen Nanshan District, Shenzhen
Tel. 0755－86013669 0755－86013669
Fax 0755－83348369 0755－83348369
E-mail investor@fiyta.com.cn investor@fiyta.com.cn
III. Other Information
1. Way of Communication with the Company
Is there any change in the Company’s registered address, office address, postal code, website, e-mail
address in the reporting period?
Inapplicable
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
There is no change in the Company’s registered address, office address, postal code, website, e-mail
address in the reporting period. For the detail, please refer to 2012 Annual Report
2. Information Disclosure and Place of Regular Reports Prepared for Inquiry
Is there any change in information disclosure and place of regular reports prepared for inquiry?
Inapplicable
There is no change in the name of the newspapers designated for disclosing the information, internet web site
designated by China Securities Regulatory Commission for publishing the company’s semi-annual report: and place of the
company’s semi-annual report prepared for inquiry. For the detail, please refer to 2012 Annual Report
3. Changes in Registration
Is there any change in the registration in the reporting period?
Number of
Business
Date of Authority Taxation Organization
License of
Registration Registered with Registration No.: Code
Enterprise as
Legal Person
Market
Registration at
Supervision
the beginning of January 18, 44030110319 44030119218
Administration of 19218978-3
the reporting 2013 6089 9783
Shenzhen
period
Municipality
Market
Registration at Supervision
44030110319 44030119218
the end of the April 3, 2013 Administration of 19218978-3
6089 9783
reporting period Shenzhen
Municipality
4. Other Relevant Information
Is there any change in other relevant information in the reporting period
Inapplicable
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
Section 3 Financial and Business Highlights
I. Key Accounting Data and Financial Indicators
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to change
of the accounting policy and correction of accounting errors?
No
Increase/decrease in
the reporting period vs
Same Period of the
Reporting period the corresponding
Previous Year
period of the previous
year (%)
Revenues in CNY 1,508,353,766.86 1,483,755,811.36 1.66%
Net profit attributable to the
69,097,419.87 65,289,417.62 5.83%
Company’s shareholders, in CNY
Net profit attributable to the
Company’s shareholders less the 68,078,232.08 66,113,217.45 2.97%
non-recurring gains/losses, in CNY
Net cash flows arising from operating
133,994,800.57 -93,347,203.62
activities, in CNY
Basic earning per share (CNY/share) 0.176 0.166 6.02%
Diluted earning per share
0.176 0.166 6.02%
(CNY/share)
Net assets-income ratio , weighted
4.68% 4.63% 0.05%
average, (%)
Increase/decrease of
End of the reporting End of the previous the report period vs the
period year same period of the
previous year (%)
Total assets, in CNY 3,303,457,186.00 3,326,763,824.86 -0.7%
Net assets attributable to the
1,512,226,384.94 1,446,677,625.13 4.53%
Company’s shareholder (CNY)
II. Difference in the Accounting Data based on the Accounting Standards Outside
Mainland China
Inapplicable
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
III. Non-recurring gain/loss items and the amount involved
In CNY
Items Amount Note:
It is the earning from
disposal of the idle office
building in Chengdu
Loss from disposal of non-current assets, including the
440,659.45 amounting to CNY
part written-off with the provision for impairment of assets
427,651.20 in the current
year and loss from disposal
of other fixed assets.
Government subsidy recognized in current gains and
losses (excluding those closely related to the Company’s For the detail, refer to Note
795,493.22
business and granted under the state’s policies according 63 (2) government subsidy
to certain quota of amount or volume)
Income and expenses from the business other than the Other various non-operating
79,099.32
above items revenue and expenditure
Less: Amount affected by the income tax 290,388.46
The amount of the minority
equity affected after
deduction of the government
Amount affected by minority equity (after tax) 5,675.74 subsidy amounting to CNY
16,993.22 received by 68
Station Co., Ltd., one of the
subsidiaries.
Total 1,019,187.79 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering their Securities to the Public – Non-recurring Gains and Losses and its non-recurring
gain/loss items as illustrated in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
their Securities to the Public – Non-recurring Gains and Losses which have been defined as recurring gains and losses, it
is necessary to explain the reason.
Inapplicable
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
Section 4 Report of the Board of Directors
I. Overview
In the reporting period, no significant change has taken place in the environment of macro economy over the past, the
slowing-down of the domestic GDP has caused the investment and consumption sectors more cautious and the consumer
confidence was fatigued and weak continuously. Under such a background, FIYTA has insisted on the subject term of the
annual strategy of “values, efficiency, benefit and ability”; persistently held fast to corporate philosophy, took brand
strategy as leadership, through the business model of “products + channels”, carried forward value chain integration
upgrading so as to gradually form core profession, realized the longitudinal integration strategy of keeping a foothold on
the domestic market, continuously expanded international cooperation and propelled internationalization development. In
the reporting period, the Company realized sales income amounting to CNY 1,508,353,766.86, a 1.66% year-on-year
growth; realized net profit amounting to CNY 69,097,419.87, a 5.83% year-on-year growth.
II. Principal Business Summary
General
In the reporting period, the Company’s key work focused on upgrading of brand profession operation ability,
enthusiastically improved the business performance of the retail channel, continuously improved the earnings level of its
own watch brand, improved the turnover speed of such assets as inventories; at the same time, integrated internal
resources, enhanced information share and business support, and realized development of synergistic interaction of
various businesses, ensured stability of retail revenue with the channel brands with Harmony World Watches as the
leading brand by uninterruptedly carrying out sales competition and theme promotion; persistently carried out long aged
inventory digestion work through control of the total inventories; realized expense reduction and profit increasing by
means of various approaches, including rationalized capital allocation, “reducing rent and withholding”, cutting down bank
card transaction fee, saving refurbishment costs etc.; , ensured the backbone team continuously stable by means of a
series of employee development programs, such as training program and improved the organization’s capability; took
FIYTA as the key product brand, the “growth rate strategy + productivity strategy” as the work core and promoted the sales
growth by means of sales competitions such as “Global Travel”, etc., holiday promotion, new arrival promotion, etc.;
comprehensively improved the quality of channels through upgrading the channel development standards, focusing on
terminal and shopping guide and regulating the management of the distributors; enriched varieties of the existing
channels by striving to develop e-business, continuously enhancing construction of overseas channels and developing
business of multiple brands; steadily improved the product gross margin level by adjusting product structure, improving
retail price of products in series and controlling product costs; promoted the brand awareness and reputation in various
ways, such as holding FIYTA Brand annual symposium, new arrival news conference, participating in Basel Watch Fair,
spokesperson promotion activities, etc. Meanwhile, the Company continued to carry out a series of internal management
upgrading work, such as management innovation, etc. and maintained general stability of various businesses.
Year-on-year changes in the major financial data
In CNY
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
Year-on-year
Same Period of the
Reporting period increase/decrease Cause of Change
Previous Year
(%)
Operating revenue 1,508,353,766.86 1,483,755,811.36 1.66%
Operating costs 970,869,666.64 987,034,886.89 -1.64%
Selling expenses 315,335,871.86 260,546,992.95 21.03%
Administrative
78,223,983.74 87,835,143.36 -10.94%
expenses
Financial expenses 47,823,408.80 59,603,871.04 -19.76%
Income tax expenses 13,755,185.77 17,173,824.32 -19.91%
Investment in R & D 6,620,694.71 6,326,203.26 4.66%
controlled the
Net cash flow arising
development speed
from operating 133,994,800.57 -93,347,203.62
of the famous brand
activities
watch network
Net cash flow arising
from investment -57,808,318.28 -75,472,033.87 -23.4%
activities
Net cash flow arising Decrease of the
from fund-raising -120,444,793.36 199,130,466.48 -160.49% amount of bank loan
activities in the current year
Decrease of cash
and cash equivalent
Net increase in cash
-44,930,869.69 30,335,454.06 -248.11% at the period end
and cash equivalents
over the period
beginning
Great change has taken place in profit composition or profit sources in the reporting period
Inapplicable
No significant change has taken place in profit composition or profit sources in the reporting period.
Future development and plan extended to the reporting period as disclosed in the documents of public disclosure, such as
the company’s prospectus, letter of intent on the offering and asset reorganization report, etc.
Inapplicable
Review and summary of the progress of the operaton plan in the reporting period the Company disclosed previously
Inapplicable
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
III. Composition of Principal Businesses
In CNY
Increase/decr
Increase/decr Increase/decr
ease of
ease of ease of gross
principal
revenue in the profit rate over
Operating Operating Gross margin business cost
same period the same
revenue costs (%) over the same
of the period of the
period of
previous year previous year
previous year
(%) (%)
(%)
Sectors
1,133,437,63 847,739,810.
Commerce 25.21% -3.42% -3.03% -0.29%
4.12 91
321,175,473. 110,740,242.6
Industry 65.52% 20.79% 11.67% 2.81%
86 6
39,214,706.2
Leasehold 6,743,346.45 82.8% 12.99% -35.13% 12.75%
4
Products
Sales of
1,133,437,63 847,739,810.
famous brand 25.21% -3.42% -3.03% -0.29%
4.12 91
watches
Sales of
321,175,473. 110,740,242.6
FIYTA 65.52% 20.79% 11.67% 2.81%
86 6
watches
39,214,706.2
Leasehold 6,743,346.45 82.8% 12.99% -35.13% 12.75%
4
Regions
Northeast 130,071,970. 95,160,184.4
26.84% -6.88% -7.95% 0.85%
China 42 4
290,411,310.1 218,987,802.
North China 24.59% -0.6% -1.76% 0.89%
6 61
Northwest 270,095,282. 199,716,950.
26.06% -18.45% -19.24% 0.73%
China 36 98
Southwest 137,226,801. 98,473,472.7
28.24% 24.47% 22.8% 0.98%
China 31 8
178,523,905. 125,133,429.
East China 29.91% -2.43% -3.75% 0.96%
64 43
487,498,544. 227,751,559.
South China 53.28% 16.65% 13.87% 1.14%
34 78
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
Note: The gross margin from the property leasehold in the region of South China increased by 12.75% over the same
period of the previous year was due to that upon completion of the amortization of the equipment of Xi’an FIYTA Building,
the property cost is reduced.
IV. Analysis on Core Competitiveness
FIYTA’s core competitiveness is a collection consisting of a set of techniques and technology which enables the Company
to provide customers with particular values, is the competitive power on which a series of products or services rely in
achieving the leading position. It consists of the ability of brand building, ability of offering top quality services, ability of
product innovation, ability of knowledge management and ability of management of strategic human resources. In the
reporting period, the In-cabin Space Suite Watch, the Astronauts’ Working Watches and the Astronautess’ Working Watch
delivered by the Company accompanied the astronauts and astronautess of Shenzhou IX in successful fulfillment of
China’s first manned spaceship rendezvous and docking mission as well as the first space lecturing; the Company was
awarded the First Prize of Science & Technology Progress by China National Light Industry Council for the project of “the
Driving Unit of High Precision Multi-function Mechanical Watch”; the honorable mention of “the 14th China Design Patents
in 2013” granted by State Intellectual Property Office (SIPO) for FIYTA TRIUMP Series Watch GA8180.BBB. During the
first half year, the Company was granted 1 invention patent, 5 patents for utility model and 8 design patents.
V. Analysis on Investment Status
1. External Equity Investment
(1) External Investment
External Investment
Investment amount in the reporting Investment in the same Period of the
period (in CNY) Previous Year (in CNY) Change rate (%)
0.00 28,050,000.00 -100%
Particulars of Investees
Porportion in the investees’ equity
Company Name Principal business
(%)
(2) Holding of the Equipty in Financial Enterprises
Inapplicable
(3) Investment in Securities
Inapplicable
Holding of the equity in other listed companies
Inapplicable
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
2. Entrusted Financing, Investment in Derivative Products and Entrusted Loan
Inapplicable
3. Application of the Proceeds Raised through Share Offering
(1) General Application of the Raised Capital
In CNY10,000
Total raised capital 40,000
Total raised capital invested in the reporting
40,000
period
Total raised capital accumulatively invested 40,000
Total raised capital whose application has been
0
changed in the reporting period
Total raised capital whose application has been
0
changed accumulatively
Proportion of the total raised capital whose
application has been changed accumulatively 0%
(%)
Note to Application of the Raised Capital
The Company held the 33rd meeting of the Sixth Board of Directors on June 19, 2012. The meeting reviewed and
approved the Proposal of Issuing Company Bonds, etc. according to which, the Company planned to issue company
bonds with a size not exceeding CNY400 million and with a term not exceeding 5 years (with 5 years inclusive) which
would be used for replacing bank loan and replenishing the working capital. On September 9, 2012, approved through
verification by China Securities Regulatory Commission (CSRC) with Document ZHENG JIAN XU KE [2012] No.
1209, the Company was approved to issue company bonds with the size not exceeding CNY 400 million. The
Company issued CNY 400 million of bonds in the current period. After deduction of the issuing costs, the net raised
capital amounting to CNY396.9 million was remitted to the bank account designated by the Company on March 5,
2013.
RSM China CPAs, the CPAs engaged by the Company issued the capital verification reports of ZHONG RUI YUE HUA
YAN ZI [2013] No. 0053, ZHONG RUI YUE HUA YAN ZI [2013] No. 0054 and ZHONG RUI YUE HUA YAN ZI [2013]
No. 0055 respectively for the frozen capital for subscription of the on-line bond issuing, the frozen capital for
subscription of the off-line placement and the actual raised capital conditions. Approved by Shenzhen Stock Exchange
with Document SHEN ZHENG SHANG [2013] No. 99, the bonds have been listed for trading with both SZSE
Centralized Bidding System and the Comprehensive Agreement Based Transaction Platform commencing from March
29, 2013 with the abbreviation of the security as “12 YADA BOND” and security code as “112152”. The issuing of the
company bonds has been completed. The capital raised from the issuing was remitted to the bank account designated
by the Company on March 5, 2013. Ended June 30, 2013, the Company had used up all the raised capital and no
change has taken place in the application purpose of the raised capital.
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
(2) Promised Projects with Raised Capital
In CNY10,000
Date
Amount Investm Has
when
Total accumul ent Has the significa
Has the the
promise atively progres predicte nt
project Total Amount project Result
Promised investment d invested s by the d change
been investm invested has realized
projects and investm up to end of operatio taken
changed ent after in the reached in the
investment with the ent the end the n result place in
(including adjustm report the reportin
over-raised capital with of the report been the
partial ent (1) period predicte g period
raised report period reached feasibilit
change) d
capital period (%) (3) ? y of the
applicab
(2) = (2)/(1) project?
le status
Investment projects as promised
Repayment of bank
30,000 30,000 30,000 30,000 100% 0
loan
Replenishing the
10,000 10,000 10,000 10,000 100% 0
working capital.
Sub-total of
investment with 0 0 0 0 0
over-raised capital
Sub-total of
investment projects -- 40,000 40,000 40,000 40,000 -- -- 0 -- --
as promised
Investment with over-raised capital
0 0 0 0 0
Sub-total of
investment with -- 0 0 0 0 -- -- 0 -- --
over-raised capital
Total -- 40,000 40,000 40,000 40,000 -- -- 0 -- --
Note to failure to
comply with the
planned progress
and predicted Inapplicable
earnings and the
cause(s) (based on
the specific projects)
Explanation of the
Inapplicable
significant change in
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
project feasibility
Amount of
over-raised capital,
Inapplicable
application and
progress of use
Change of the
implementation site
of the projects Inapplicable
invested with the
raised capital
Adjustment of the
implementation
method of the
Inapplicable
projects invested
with the raised
capital
About the initial
investment in the
projects planned to
Inapplicable
be invested with the
raised capital and
the replacement
Using the idle raised
capital to
supplement the Inapplicable
working capital on
temporary basis
Balance of the raised
capital incurred in
process of project Inapplicable
implementation and
the cause
About application
and status of the
Inapplicable
raised capital
unused
Problems existing in
application of the
raised capital and
Inapplicable
the information
disclosure or other
issues
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
(3) Change of the Projects Invested with the Raised Capital
Inapplicable
(4) Projects Invested with the Raised Capital
Summary of Projects Invested with
Disclosure date Disclosure index
Raised Capital
For the detail, refer to the Special
Report on Deposit and Application of
August 21, 2013 http://www.cninfo.com.cn/
the Raised Capital in the First Half
Year of 2013.
4. Analysis on Principal Subsidiaries and Mutual Shareholding Companies
Particulars about the Principal Subsidiaries and Mutual Shareholding Companies
In CNY
Leading
Total Net assets Operating
Company Company Sectors products Registered Turnover Net profit
assets, in (CNY) profit (in
Names type engaged in and capital in CNY (in CNY)
CNY CNY)
services
Mainly
engaged in
sales of
world
famous
Shenzhen
brand
Harmony
watch,
World 600,000,0 2,075,956, 666,898,6 1,160,583, 16,898,69 13,566,52
Subsidiary Retail including
Watches 00 786.86 78.44 110.18 7.17 6.47
purchase,
Center
sales and
Co., Ltd.
maintenan
ce service
of
timepieces
and parts
Sales and
repairing
of clocks
FIYTA
and 50,000,00 479,672,0 40,143,06 310,152,0 23,469,34 17,436,26
Sales Co., Subsidiary Retail
watches 0 62.42 0.91 93.40 5.95 2.63
Ltd.
and parts,
sales of
jewelry
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
and
ornaments
.
Mainly
engaged in
production
and sales
of FIYTA
watches,
including
Shenzhen
productin
FIYTA
and
Sophisticat
maintenan
ed Manufactu 10,000,00 221,216,8 52,328,111 167,156,5 42,271,83 36,373,73
Subsidiary ce of
Timepiece re 0 60.69 .60 81.38 5.24 7.13
clocks and
s
watches,
Manufactu
and driving
re Co., Ltd.
units,
spares and
parts,
sophisticat
ed
timepieces
.
R & D,
production
and sales
of
Shenzhen
watches,
FIYTA
production
Technolog
Manufactu , 10,000,00 60,251,30 16,394,70 75,533,90 6,378,000. 4,901,516.
y Subsidiary
re machining, 0 7.78 0.95 5.42 83 64
Developm
sales and
ent Co.,
technology
Ltd.
developme
nt of
sophisticat
ed parts.
Mainly
FIYTA
engaged in HK$
(Hong 291,556,3 122,570,2 72,665,43 5,619,414. 4,189,029.
Subsidiary Retail trade and 65,060,00
Kong) 66.34 02.44 1.42 52 40
overseas 0
Limited
market
17
FIYTA Holdings Ltd. 2013 Semi-Annual Report
developme
nt of FIYTA
watches
Sales of
clocks and
watches
and gifts
and
Shenzhen
consultatio
Symphony 28,654,96 -1,575,350 4,425,684. -1,517,049 -1,137,786
Subsidiary Retail n of 5,000,000
Trading 6.38 .94 28 .32 .99
relevant
Co., Ltd.
informatio
n and
other
domestic
trading
Mutual
Shanghai Sales of
shareholdi
Watch Manufactu watches 15,350,00 80,058,65 75,142,20 32,459,52 -135,662.7 433,762.9
ng
Industry re and spares 0 3.09 2.14 3.98 6 0
company
Co., Ltd. and parts
5. Projects Invested with Funds not Raised through Share Offering
Inapplicable
VI. Prediction of the Operation Performances from January to September 2013
Prediction of the possibility of the accumulated net profit from the year beginning to the end of the next reporting period
being of loss; or warning for big changes in the net profit in comparison with the same period of the previous year and the
reasons
Inapplicable
VII. Explanation of the Board of Directions and the Supervisory Committee on the
Qualified Auditor’s Report Issued by the CPAs
Inapplicable
VIII. Explanation of the Board of Directions to the Matters in Connection with
“Qualified Auditors’ Report” of the Previous Year
Inapplicable
18
FIYTA Holdings Ltd. 2013 Semi-Annual Report
IX. Implementation of Profit Distribution in the Reporting Period
Implementation or adjustment of the profit distribution plan, especially cash dividend plan and plan for conversion of
capital reserve into share capital implemented in the reporting period
2012 Profit Distribution Plan was reviewed and approved at the 2nd meeting of the Seventh Board of Directors held on
February 27, 2013 and 2012 Annual General Meeting held on June 21, 2013. According to the plan, the Company took the
share capital as at December 31, 2012 totalling 392,767,870 shares as the base, and would distribute cash dividend at
rate of CNY 1.00 for every 10 shares (with tax inclusive) to all the shareholders. The total cash dividend to be distributed
amounted to CNY 39,276,787.00. The profit distribution was completed by August 13, 2013.
X. Preplan for Profit Distribution and Conversion of Capital Reserve into Share
Capital
Inapplicable
XI. Statement of such activities as reception, research, communication, interview in
the reporting period
Reception Way of Types of Visitors Discussion topics and
Reception Time
place reception Visitors received provision of materials
SINOLINK
SECURITIES Development trend of
CO., LTD, the domestic luxury
China Galaxy goods sector, some
Securities Co., measures concerning
Ltd., Shenzhen the Company’s
Golden strategic development,
March 25, 2013 Company On-Site Survey Institution
Investment brand construction,
Management terminal management
Co., Ltd., and in the past three years.
Changsheng Provision of public
Fund brochures for the first
Management half year of 2013.
Co., Ltd.
Development trend of
UBS Securities
the domestic luxury
Co., Ltd.,
goods sector, some
Huaxia Fund
measures concerning
Management
May 7, 2013 Company On-Site Survey Institution the Company’s
Co., Ltd., and
strategic development,
Guosen
brand construction,
Securities Co.,
terminal management
Ltd.
in the past three years.
19
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Provision of public
brochures for the first
half year of 2013
Development trend of
the domestic luxury
goods sector, some
Hanlun
measures concerning
Invstment
the Company’s
Consulting
strategic development,
May 23, 2013 Company On-Site Survey Institution (Shanghai) Co.,
brand construction,
Ltd., and Rising
terminal management
Securities Co.,
in the past three years.
Ltd.
Provision of public
brochures for the first
half year of 2013
Hongyuan Development trend of
Securities Co., the domestic luxury
Ltd., Essence goods sector, some
Fund measures concerning
Management the Company’s
Co., Ltd., Gold strategic development,
June 4, 2013 Company On-Site Survey Institution
State Securities brand construction,
Co., Ltd. and terminal management
Guangdong in the past three years.
Wens Provision of public
Investment Co., brochures for the first
Ltd. half year of 2013
20
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Section 5 Significant Events
I. Overview of Corporate Governance
In the year 2013, the Company continuously improved the Company’s corporate governance structure strictly according to
the PRC Company Law, the PRC Securities Law and the regulations of China Securities Regulatory Commission
concerning governance of listed companies, and tried to enhance construction of modern enterprise system, upgraded
the level of regulatory operation of the Company. As a result, there was no discrepancy between the situation of the
Company’s corporate governance and the regulatory documents of China Securities Regulatory Commission concerning
governance of listed companies.
The Company established and improved relatively standardized corporate governance structure and rules of procedures
strictly according to law, rules and regulations, including the PRC Company Law, and the Articles of Association of the
Company, formed a decision-making and operation management system with the Shareholders’ Meeting, the Board of
Directors, the Supervisory Committee and the management of the Company as the principal structure. They implemented
their respective duties according to the PRC Company Law and the Articles of Association.
The General Meeting is the Company’s supreme organ and has the power of deciding the Company’s operation policy
and investment plan, reviewing and approving the Company’s annual fincial budget scheme, settlement scheme, profit
distribution plan, loss make-up plan, change of the application of the proceeds raised through issuing, etc., makes
resolution on increase and decrease of the Company’s registered capital, issuing bond, etc., election and replacement of
directors, non-staff supervisors and decision on their remuneration and way of payment.
The Board of Directors is the Company’s decision-making organ, takes charge of implementing the decisions made by the
Shareholders’ General Meeting, assumes responsibility to the Shareholders’ General Meeting and reports the work to it;
within the authorization from the General Meeting, decides the Company’s external investment, acquisition and sales of
assets, assets pledgement, external guarantee, related transactions, etc., decides establishment of the Company’s
internal management organs, engagement and disengagement of the Company’s general manager, the Board secretary
and other senior executives, etc. The Board of Directors consists of nine directors, including three independent directors.
The Board of Directors has established three subordinate special committees, namely the Strategy Committee, the Audit
Committee and Nomination, Emolument and Assessment Committee.
The Supervisory Committee is the Company’s supervisory organ in charge of supervising the directors, managers and
other senior executives in performaning duties according to the law and proposes dismissal of any director or senior
executive who breaches the law, the administrative rules and regulations, the Articles of Association or the General
Meeting’s resolutions. The Supervisory Committee consists of three supervisors including two staff supervisors.
The management assumes responsibility to the Board of Directors and the General Manager takes full responsibility for
the Company’s routine operation and management and development under the leadership of the Board of Directors,
supervises the work of every functional department, assesses the work result of each functional department and
coordinate the relationship of all departments.
21
FIYTA Holdings Ltd. 2013 Semi-Annual Report
II. Significant Lawsuits and Arbitrations
Inapplicable
The Company has never been involved in any significant lawsuit or arbitration in the reporting period.
III. Query from Media
Inapplicable
There was no even in the Company generally questioned by media in the reporting period.
IV. Bankruptcy or Reorganization Related Events
Inapplicable
V. Asset Transactions
Inapplicable
VI. Implementation of the Company’s Equity Incentive Plan and its Influences
Inapplicable
VII. Material Related Transactions
1. Related transactions in connection with daily operation
Principle Amount Proporti Way of
Descript of of the on in the settleme Similar
Price of
Type of ion of pricing related amount nt for market
Related Relation related Disclosu Disclosu
related Related of the transacti of the the price
Parties ship transacti re date re index
parties Transact related on (in similar related obtainab
ons
ions transacti CNY transacti transacti le
ons 10,000) ons (%) on
http://w
Rainbo Commo Shoppin Bank
ww.cninf
w n Sales g mall Negotiat account March
137.34 5.49% o.com.c
Superm controlle costs expense ed price transfer 2, 2013
n/2013-
arket r s ence
009
Commo Administ Bank http://w
Property
CATIC n rative Negotiat account March ww.cninf
manage 57.26 100%
Property controlle expense ed price transfer 2, 2013 o.com.c
ment fee
r s ence n/2013-
22
FIYTA Holdings Ltd. 2013 Semi-Annual Report
009
Shenzh
en
http://w
CATIC Commo Administ Bank
ww.cninf
Enterpri n rative Training Negotiat account March
14.24 10.83% o.com.c
se controlle expense fees ed price transfer 2, 2013
n/2013-
Group r s ence
009
Training
Center
Revenu http://w
Commo Bank
CATIC e from ww.cninf
n Property Negotiat account March
Real principal 75.44 1.92% o.com.c
controlle lease ed price transfer 2, 2013
Estate busines n/2013-
r ence
s 009
Shenzh
en
Revenu http://w
Makway Commo Bank
e from ww.cninf
Cable n Property Negotiat account March
principal 23.33 0.59% o.com.c
TV controlle lease ed price transfer 2, 2013
busines n/2013-
Equipm r ence
s 009
ent Co.,
Ltd.
Revenu http://w
Commo Bank
e from ww.cninf
CATIC n Property Negotiat account March
principal 133.03 3.39% o.com.c
Property controlle lease ed price transfer 2, 2013
busines n/2013-
r ence
s 009
Revenu http://w
CATIC Commo Bank
e from ww.cninf
Securiti n Property Negotiat account March
principal 51.12 1.3% o.com.c
es, Co., controlle lease ed price transfer 2, 2013
busines n/2013-
Ltd. r ence
s 009
Shenzh
en
Revenu http://w
CATIC Commo Bank
e from ww.cninf
City n Property Negotiat account March
principal 1.12 0.03% o.com.c
Property controlle lease ed price transfer 2, 2013
busines n/2013-
Develop r ence
s 009
ment
Co., Ltd.
Shenzh Commo Revenu Property Negotiat Bank March http://w
1.12 0.03%
en n e from lease ed price account 2, 2013 ww.cninf
23
FIYTA Holdings Ltd. 2013 Semi-Annual Report
CATIC controlle principal transfer o.com.c
City r busines ence n/2013-
Develop s 009
ment
Co., Ltd.
Shenzh
en
CATIC Revenu http://w
Commo Bank
Guanlan e from ww.cninf
n Property Negotiat account March
Real principal 4.46 0.11% o.com.c
controlle lease ed price transfer 2, 2013
Estate busines n/2013-
r ence
Develop s 009
ment
Co., Ltd.
Shenzh
en
CATIC
Revenu http://w
Changta Commo Bank
e from ww.cninf
i n Property Negotiat account March
principal 64.28 1.64% o.com.c
Investm controlle lease ed price transfer 2, 2013
busines n/2013-
ent r ence
s 009
Develop
ment
Co., Ltd.
Revenu http://w
Xi’an Commo Bank
e from ww.cninf
Tianyue n Property Negotiat account March
principal 175 4.46% o.com.c
Hotel controlle lease ed price transfer 2, 2013
busines n/2013-
Co., Ltd. r ence
s 009
Revenu http://w
Rainbo Commo Bank
e from ww.cninf
w n Property Negotiat account March
principal 19.17 0.49% o.com.c
Superm controlle lease ed price transfer 2, 2013
busines n/2013-
arket r ence
s 009
Shenzh
en Revenu http://w
Commo Bank
CATIC e from ww.cninf
n Property Negotiat account March
City principal 4.5 0.11% o.com.c
controlle lease ed price transfer 2, 2013
Investm busines n/2013-
r ence
ent Co., s 009
Ltd.
Shenzh Commo Revenu Property Negotiat 19.62 0.5% Bank March http://w
24
FIYTA Holdings Ltd. 2013 Semi-Annual Report
en n e from lease ed price account 2, 2013 ww.cninf
CATIC controlle principal transfer o.com.c
Jiufang r busines ence n/2013-
Assets s 009
Manage
ment
Co., Ltd.
Shenzh
en Revenu http://w
Commo Bank
CATIC e from ww.cninf
n Property Negotiat account March
Theme principal 47.28 1.21% o.com.c
controlle lease ed price transfer 2, 2013
Real busines n/2013-
r ence
Estate s 009
Co., Ltd.
Ganzho
u CATIC http://w
Commo Bank
Real ww.cninf
n Sales Property Negotiat account March
Estate 46.76 1.09% o.com.c
controlle costs lease ed price transfer 2, 2013
Develop n/2013-
r ence
ment 009
Co., Ltd.
Chengd
u CATIC http://w
Commo Bank
Real ww.cninf
n Sales Property Negotiat account March
Estate 18.31 0.43% o.com.c
controlle costs lease ed price transfer 2, 2013
Develop n/2013-
r ence
ment 009
Co., Ltd.
Revenu http://w
Eventua Bank
e from ww.cninf
l Sales of Negotiat account March
AVIC principal 132.8 0.09% o.com.c
controlle products ed price transfer 2, 2013
busines n/2013-
r ence
s 009
Revenu http://w
Rainbo Commo Bank
e from ww.cninf
w n Sales of Negotiat 3,843.2 account March
principal 2.57% o.com.c
Superm controlle products ed price 9 transfer 2, 2013
busines n/2013-
arket r ence
s 009
Commo Revenu Bank http://w
Shenna Sales of
n e from Negotiat account March ww.cninf
n Circuit material 735.76 0.49%
controlle principal ed price transfer 2, 2013 o.com.c
Co., Ltd. s
r busines ence n/2013-
25
FIYTA Holdings Ltd. 2013 Semi-Annual Report
s 009
5,666.7
Total -- -- -- -- -- -- --
4
2、2. Related transactions concerning assets acquisition/sales
Inapplicable
3、3. Important Related Transitions with Joint Investments
Inapplicable
4. Current Associated Rights of Credit and Liabilities
Did there exist any non-operational related rights of credit and liabilities
No
Does there
Amount
Types of exist
Opening incurred in Ending
creditor’s Reasons of non-operatio
Related Parties Relationship balance (in the reporting balance (in
right and formation n oriented
CNY 10,000) period (in CNY 10,000)
liabilities fund
CNY 10,000)
occupancy?
Related
Common party’s rights
Rainbow Supermarket Loan No 79.93 210.67 290.6
controller of credit
receivable
Related
Eventual party’s rights
AVIC Loan No 67.68 55.75 123.43
controller of credit
receivable
Related
Shenzhen CATIC
Common party’s rights
Enterprise Group Training fees No 15 0.18 15.18
controller of credit
Training Center
receivable
Related
Shennan Circuit Co., Common party’s rights
Loan No 183.16 -73.6 109.56
Ltd. controller of credit
receivable
Related
Shennan Circuit Co., Common party’s rights Loan (Notes
No 200 350 550
Ltd. controller of credit receivable)
receivable
26
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Related
CATIC Electronic
Common party’s rights
Measuring Loan No 0 10.37 10.37
controller of credit
Instruments Co., Ltd
receivable
Related
Chengdu CATIC Real Common party’s rights Rental
No 0.41 -0.41 0
Estate controller of credit deposit
receivable
Related
Property
Common party’s rights
CATIC Property management No 0 1.35 1.35
controller of credit
fee
receivable
Related
Common party’s rights Shopping
Rainbow Supermarket No 11.94 3.14 15.08
controller of credit mall deposit
receivable
Related
Chengdu CATIC Real
Common party’s rights Rental
Estate Development No 10.05 0 10.05
controller of credit deposit
Co., Ltd.
receivable
Related
Ganzhou CATIC Real
Common party’s rights Rental
Estate Development No 12.27 0 12.27
controller of credit deposit
Co., Ltd.
receivable
Related
Shenzhen CATIC Residual
Common parties’
Building Technology engineering No 0.82 0 0.82
controller liabilities
Co., Ltd. payment
payable
Related
Shenzhen CATIC Residual
Common parties’
Nanguang Elevator engineering No 0.34 0 0.34
controller liabilities
Engineering Co., Ltd. payment
payable
Related
Shenzhen CATIC City Common parties’ Rental
No 3.78 0 3.78
Investment Co., Ltd. controller liabilities deposit
payable
Related
CATIC Securities, Co., Common parties’ Rental
No 17 0 17
Ltd. controller liabilities deposit
payable
CATIC Real Estate Common Related Rental No 42.48 0 42.48
27
FIYTA Holdings Ltd. 2013 Semi-Annual Report
controller parties’ deposit
liabilities
payable
Related
Shenzhen CATIC
Common parties’ Rental
Changtai Investment No 22.17 0 22.17
controller liabilities deposit
Development Co., Ltd.
payable
Related
Shenzhen CATIC
Common parties’ Rental
Jiufang Assets No 0 6.06 6.06
controller liabilities deposit
Management Co., Ltd.
payable
Related
Common parties’ Rental
Rainbow Supermarket No 6 0 6
controller liabilities deposit
payable
Related
Shenzhen Makway
Common parties’ Rental
Cable TV Equipment No 6.46 -6.46 0
controller liabilities deposit
Co., Ltd.
payable
Influence of the related rights of credit
and liabilities upon the Company’s Inapplicable
operation results and financial position.
5. Other Material Related Transactions
The 3rd meeting of the Seventh Board of Directors held on April 3, 2013 reviewed and approved the Proposal for the
Financial Service Agreement Signed by AVIC Finance Co., Ltd. For the relevant contents, refer to the Announcement on
the Resolutions of the 3rd Meeting of the Seventh Board of Directors (2013-013) and the Announcement on the Related
Transaction Involved in the Financial Service Agreement Signed by AVIC Finance Co., Ltd. (2013-015). The proposal
needs to be submitted to the General Meeting for review.
Relevant inquiry with the Internet website for disclosing provisional report on material related transactions
Date of disclosing provisional Description of the website for disclosing
Description of provisional announcement
announcement provisional announcements
The Announcement on the Related
Transaction Involved in the Financial
April 3, 2013 http://www.cninfo.com.cn/
Service Agreement Signed by AVIC
Finance Co., Ltd. (2013-015)
28
FIYTA Holdings Ltd. 2013 Semi-Annual Report
VIII. Important Contracts and Implementation
1. Custody, Contacting and Leases
(1) Custody
Inapplicable
(2) Contracts
Inapplicable
(3) Leases
Inapplicable
2. Guarantees
In CNY10,000
Outward guarantees (excluding guarantee to the subsidiaries)
Date of the
Date of Guarant
announce
occurrence Impleme ee to
ment on Guarantee Actual amount Type of Guarantee
Names of Gurantees (date of ntation related
the line of guarantee guarantee period
agreement status party?
guarantee
execution) (Y/N)
line
Inapplicable
Guarantees to the Subsidiaries
Date of
the Date of Guarant
announce occurrence Impleme ee to
Guarantee Actual amount Type of Guarantee
Names of Gurantees ment on (date of ntation related
line of guarantee guarantee period
the agreement status party?
guarantee execution) (Y/N)
line
Shenzhen Harmony Guarantee
Feb. 28,
World Watches 10,000 July 23, 2012 10,000 with joint 1 year No No
2012
Center Co., Ltd. responsibility
Shenzhen Harmony Guarantee
Feb. 28, August 27,
World Watches 8,000 8,000 with joint 1 year No No
2012 2012
Center Co., Ltd. responsibility
Shenzhen Harmony March 1, 2,878.76 January 21, 2,878.76 Guarantee 1 year No No
29
FIYTA Holdings Ltd. 2013 Semi-Annual Report
World Watches 2013 2013 with joint
Center Co., Ltd. responsibility
Guarantee
Fiyta (Hong Kong) June 13, September 6,
2,741.37 2,741.37 with joint 2 years No No
Ltd. 2011 2011
responsibility
Guarantee
Fiyta (Hong Kong) June 13, August 10,
2,741.37 2,741.37 with joint 2 years No No
Ltd. 2011 2011
responsibility
Guarantee
Fiyta (Hong Kong) Feb. 28, October 5,
1,592.2 1,592.2 with joint 2 years No No
Ltd. 2012 2012
responsibility
Guarantee
Fiyta (Hong Kong) Feb. 28, November 10,
2,388.3 2,388.3 with joint 2 years No No
Ltd. 2012 2012
responsibility
Total amount of guarantee to the Total amount of guarantee to
subsidiaries approved in the report 100,000 subsidiaries actually incurred 30,342
period (B1) in the report period (B2)
Total amount of guarantee to Total balance of guarantee to
subsidiaries already approved at 100,000 subsidiaries at the end of the 69,658
the end of the report period (B3) report period (B4)
Total amount of guarantees offered by the Company (i.e. total of the above two items)
Total amount of guarantee line Total amount of guarantee
approved in the report period 100,000 actually incurred in the report 30,342
(A1+B1) period (A2+B2)
Total amount of guarantee line Total balance of actual
already approved in the report 100,000 guarantee at the end of the 69,658
period (A3 +B3) report period (A4+B4)
Proportion of the actual guarantee in the Company’s net assets (i.e.
46.06%
A4+B4) (%)
Including:
Amount of guarantees offered to the shareholders, actual controller
0
and its related parties (C)
Amount of guarantee for liabilities directly or indirectly offered to the
0
guarantees with the asset-liability ratio exceeding 70%. (D)
Amount with the total guarantee exceeding 50% of the net assets
0
(E)
Total of the aforesaid three guarantees (C+D+E) 0
Note to the joint responsibility for discharge upon expiry of the
Inapplicable
guarantee term (if any)
30
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Description of external guarantee against the specified procedures
Inapplicable
(if any)
3. Other Material Contracts
Inapplicable
4. Other Important Transactions
Inapplicable
IX. Commitments of the Company and its shareholders holding over 5% of the
Company’s total shares in the report year or extending to the report year from
previous year(s)
Commitment Commitment
Commitments Promiser Description Implementation
time term
Commitment for Equity Separation Reform
Commitments in the acquisition report or the
written report on change of equity
Commitment made at the time of asset
reorganization
AVIC
International
Holdings
Limited shall
not assign the
shares new
subscribed
within 36
months
AVIC
commencing
International December 29, In process of
Commitment made at IPO or re-financing from the end of 3 years
Holdings 2010 implementation
the non-public
Limited
offering by Fiyta
Holdings Ltd.
(December 30,
2010 to
December 29,
2013)
according to the
Measures for
Administration
31
FIYTA Holdings Ltd. 2013 Semi-Annual Report
of Issuing of
Securities by
Listed
Companies, the
Rules for
Implementation
of Non-public
Issuing of
Shares by
Listed
Companies and
the Rules of
Shenzhen
Stock
Exchange on
Listing Stocks,
and other law,
rules and
regulations as
well as the
Contract for
Subscription of
Shares
Non-publically
Issued by Fiyta
Holdings Ltd.
Other commitments to the minority
shareholders
Has the commitment been timely
Yes
implemented?
The specific cause of failure in
Inapplicable
implementation and the next plan (if any)
X. Engagement/Disengagement of CPAs
Has the semi-annual financial report been audited?
No
XI. Punishment and Rectification
Inapplicable
32
FIYTA Holdings Ltd. 2013 Semi-Annual Report
XII. Notes to Other Significant Events
Inapplicable
33
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Section 6 Change of Shares and Particulars about Shareholders
I. Change of Shares
Before the change Increase / Decrease (+/ -) After the change
Shares
Proportio New Bonus converte Proporti
Number Others Sub-total Number
n (%) issuing shares d from on (%)
reserve
163,027, 163,027,
I. Restricted shares 41.5% 41.5%
060 060
162,977, 162,977,
2. State corporate shares 41.49% 41.49%
327 327
5. Senior executive shares 49,733 0.01% 49,733 0.01%
229,740, 229,740,
II. Unrestricted shares 58.5% 58.5%
810 810
148,092, 148,092,
1. CNY ordinary shares 37.71% 37.71%
810 810
2. Foreign invested shares 81,648,0 81,648,0
20.79% 20.79%
listed in Mainland China 00 00
392,767, 392,767,
III. Total Shares 100% 100%
870 870
Cause of change of shares
Inapplicable
Approval of Change of Shares
Inapplicable
Transfer of Change of Shares
Inapplicable
Influence from the share movements upon such financial indicators as earnings per share, diluted earnings per share, net
asset per share of the shareholders attributable to the Company’s common shares in the lastest year and the latest
accounting period.
Inapplicable
Other information as the Company considers necessary to be disclosed or demanded by the securities regulatory
authority for disclosing
Inapplicable
2. Explanation to the Change of the Company’s Total Shares and the Strucutre and the Change of the Company’s Asset
and Liability Structure Arising Therefrom
34
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Inapplicable
II. Number of Shareholders and Shareholding
In shares
Total shareholders at the end of the
27,682
reporting period
Shares held by the shareholder holding over 5% of the total shares
Numb Pledging or freezing
Quantity Increa Numb
er of
at the se/dec er of
the
end of rease the
Shareholder’s Shareholding non-re
Nature the in the restrict Status of the
Name proportion (%) stricte Quantity
reporting reporti ed shares
d
period ng shares
shares
period held
held
AVIC
State-owned
International 162,977, Uncha 162,97
corporate 41.49% 0
Holdings Limited 327 nged 7,327
shareholder
China Merchants
Overseas 7,536,97 178,10 7,536,
Securities (HK) 1.92% 0
corporate 0 0 970
Co., Ltd.
Zhongrong Life
Domestic
Insurance Co.,
non-state 6,900,00 6,900, 6,900,
Ltd. – Zhongrong 1.76% 0
corporate 0 000 000
Enhancement
shareholder
No. 1
China
Construction
Domestic
Bank – Huaxia
non-state 6,428,20 -4,491, 6,428,
Superiority 1.64% 0
corporate 8 865 208
Growth Stock
shareholder
Based Securities
Investment Fund
Domestic
National Social
non-state 4,359,30 -519,2 4,359,
Security Fund 1.11% 0
corporate 5 60 305
No. 114 Portfolio
shareholder
National Social Domestic 4,000,81 4,000, 4,000,
1.02% 0
Security Fund non-state 5 815 815
35
FIYTA Holdings Ltd. 2013 Semi-Annual Report
No. 110 Portfolio corporate
shareholder
Domestic natural 3,788,80 3,788, 3,788,
Dai Ying 0.96% 0
person 0 800 800
GSI S/A
GOLDEN CHINA Overseas 3,418,28 -998,3 3,418,
0.87% 0
PLUS MASTER corporate 4 70 284
FUND
KGI ASIA Overseas 2,992,08 -1,124, 2,992,
0.76% 0
LIMITED corporate 5 680 085
Essence
International Overseas 2,778,19 Uncha 2,778,
0.71% 0
Securities (Hong corporate 2 nged 192
Kong) Limited
About the fact that a strategic investor
or ordinary corporate became one of
Inapplicable
the top ten shareholders due to
placement of new shares (if any)
Explanation on associated The Company has found neither affiliation among the aforesaid shareholders nor concerted actor as
relationship or consistent action of the specified in the Measures for Administration of Information on the Shareholder Equity Change of
above shareholders Listed Companies.
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held at the end of the Share type
Shareholder’s Name reporting period
Share type Quantity
China Merchants Securities (HK) Co.,
7,536,970 B-shares 7,536,970
Ltd.
Zhongrong Life Insurance Co., Ltd. –
6,900,000 A Shares 6,900,000
Zhongrong Enhancement No. 1
China Construction Bank – Huaxia
Superiority Growth Stock Based 6,428,208 A Shares 6,428,208
Securities Investment Fund
National Social Security Fund No. 114
4,359,305 A Shares 4,359,305
Portfolio
National Social Security Fund No. 110
4,000,815 A Shares 4,000,815
Portfolio
Dai Ying 3,788,800 A Shares 3,788,800
GSI S/A GOLDEN CHINA PLUS
3,418,284 B-shares 3,418,284
MASTER FUND
KGI ASIA LIMITED 2,992,085 B-shares 2,992,085
36
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Foreign shares
Essence International Securities
2,778,192 listed abroad 2,778,192
(Hong Kong) Limited
Industrial and Commercial Bank of
China – Guotou Ruiyin Growth
1,800,000 A Shares 1,800,000
Selected Stock Based Securities
Investment Fund
Explanation to the associated
relationship or consistent action
among the top 10 shareholders of The Company has found neither affiliation among the aforesaid shareholders nor concerted actor as
non-restricted negotiable shares and specified in the Measures for Administration of Information on the Shareholder Equity Change of
that between the top 10 shareholders Listed Companies.
of non-restricted negotiable shares
and top 10 shareholders.
Note to the shareholders involved in
margin financing & securities lending Inapplicable
(if any)
Did the shareholders conduct agreed repurchase securities trading in the reporting period?
No
III. Change in Controlling Shareholder or Actual Controller
Inapplicable
37
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Section 7 Directors, Supervisors and Senior Executives
I. Change in Shares Held by Directors, Supervisors and Senior Executives
Inapplicable
There was no change in the shares held by the Company’s directors, supervisors and senior executives in the reporting
period. For the detail, refer to 2012 Annual Report.
II. Retirement and Dismissal of Directors, Supervisors and Senior Executives
Inapplicable
38
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Section 8 Financial Report
I. Auditors’ Report
Has the semi-annual report been audited
No
The semi-annual financial report has not been audited.
II. Financial Statements
The currency applied in the financial notes and statements is China Yuan (CNY).
1. Consolidated Balance Sheet
Prepared by FIYTA Holdings Ltd.
In CNY
Items Ending balance Opening balance
Current assets:
Monetary fund 95,490,125.02 140,420,994.71
Settlement Reserve
Inter-bank lending
Trading financial assets
Notes receivable 5,500,000.00 2,000,000.00
Accounts receivable 352,990,365.07 309,117,274.31
Prepayments 76,280,021.13 75,418,566.40
Insurance premium
receivable
Reinsurance accounts
receivable
Accounts receivable
reinsurance reserve
Interest receivable
Dividends receivable
Other receivables 32,863,625.34 33,353,606.26
Buying and selling back
financial assets
39
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Inventories 1,886,266,048.26 1,883,265,248.76
Non-current assets due
within a year
Other current assets 27,694,986.48 51,043,401.97
Total current assets 2,477,085,171.30 2,494,619,092.41
Non-Current Assets:
Disbursement of entrusted
loans and advances
Available-for-sale financial
assets
Held –to-maturity investment
Long-term accounts
receivable
Long-term equity investment 41,842,182.52 41,733,741.79
Investment based real estate 239,807,557.69 244,379,430.63
Fixed assets 311,211,357.91 317,801,267.87
Construction-in-process 5,181,006.05 3,866,365.79
Engineering supplies
Disposal of fixed assets
Productive biological assets
Oil and gas asset
Intangible assets 36,254,218.20 36,749,627.18
Development expenses
Goodwill
Long-term expenses to be
129,188,168.33 126,274,611.58
apportioned
Deferred income tax asset 62,887,524.00 61,339,687.61
Other non-current assets
Total non-current assets 826,372,014.70 832,144,732.45
Total assets 3,303,457,186.00 3,326,763,824.86
Current liabilities:
Short-term borrowing 918,787,629.42 1,409,800,000.00
Borrowings from central
bank
Receipt of deposits and
deposits from other banks
40
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Loans from other banks
Trading financial liabilities
Notes payable
Accounts payable 211,299,461.08 211,297,566.43
Advance receipts 6,715,812.84 12,131,032.89
Funds from selling out and
repurchasing financial assets
Service charge and
commission payable
Salaries payable to the
15,491,894.02 28,090,979.22
employees
Taxes payable 62,985,766.25 55,705,075.23
Interest payable 24,044,496.13 7,376,397.56
Dividends payable
Other payables 38,068,836.34 37,453,414.11
Reinsurance payable
Insurance contract reserve
Funds from securities
trading agency
Funds from underwriting
securities agency
Non-current liabilities due
54,827,407.00 55,846,683.00
within a year
Other current liabilities 7,315,030.73 10,088,432.90
Total current liabilities 1,339,536,333.81 1,827,789,581.34
Non-Current Liabilities:
Long term borrowings 47,136,286.38 48,383,020.45
Bonds payable 400,000,000.00
Long term accounts payable
Special accounts payable
Predicted liabilities
Deferred income tax liability
Other non-current liabilities 2,050,000.00 1,506,000.00
Total non-current liabilities 449,186,286.38 49,889,020.45
Total liabilities 1,788,722,620.19 1,877,678,601.79
Owners’ equity (or shareholders’
41
FIYTA Holdings Ltd. 2013 Semi-Annual Report
equity):
Paid up capital (or capital
392,767,870.00 392,767,870.00
stock)
Capital reserve 525,506,952.78 525,506,952.78
Less: shares in stock
Special reserve
Surplus reserve 148,587,680.61 148,587,680.61
Generic risk reserve
Retained earnings 456,082,096.65 386,984,676.78
Foreign Currency Capital -10,718,215.10 -7,169,555.04
Total owner’s equity attributable to
1,512,226,384.94 1,446,677,625.13
the parent company
Minority equity 2,508,180.87 2,407,597.94
Owners’ equity (or shareholders’
1,514,734,565.81 1,449,085,223.07
equity)
Total liabilities and owners’ equity
3,303,457,186.00 3,326,763,824.86
(or shareholders’ equity)
Legal Representative: Lai Weixuan Chief Financial Officer: Li Dehua Manager of the Accounting Dept: Hu
Xinglong
2. Balance Sheet, Parent Company
Prepared by FIYTA Holdings Ltd.
In CNY
Items Ending balance Opening balance
Current assets:
Monetary fund 31,841,346.45 51,372,778.02
Trading financial assets
Notes receivable
Accounts receivable 240,328,704.17 240,591,979.60
Prepayments 8,405,680.16 7,400,499.96
Interest receivable
Dividends receivable 90,931,618.19 15,960,140.05
Other receivables 1,086,101,870.36 879,008,377.75
Inventories 263,584.81 326,238.78
Non-current assets due
42
FIYTA Holdings Ltd. 2013 Semi-Annual Report
within a year
Other current assets 45,265.97 45,265.96
Total current assets 1,457,918,070.11 1,194,705,280.12
Non-Current Assets:
Available-for-sale financial
assets
Held –to-maturity investment
Long-term accounts
receivable
Long-term equity investment 774,041,902.52 773,933,461.79
Investment based real estate 239,807,557.69 244,379,430.63
Fixed assets 110,781,346.98 113,532,673.59
Construction-in-process 5,181,006.05 3,866,365.79
Engineering supplies
Disposal of fixed assets
Productive biological assets
Oil and gas asset
Intangible assets 29,900,696.62 30,390,445.62
Development expenses
Goodwill
Long-term expenses to be
9,031,028.42 9,959,330.37
apportioned
Deferred income tax asset 354,202.35 424,050.46
Other non-current assets
Total non-current assets 1,169,097,740.63 1,176,485,758.25
Total assets 2,627,015,810.74 2,371,191,038.37
Current liabilities:
Short-term borrowing 710,000,000.00 949,800,000.00
Trading financial liabilities
Notes payable
Accounts payable 6,867,853.43 6,871,761.93
Advance receipts 1,881,869.43 1,393,704.45
Salaries payable to the
812,530.00 4,130,000.00
employees
Taxes payable 4,387,274.04 7,275,698.17
43
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Interest payable 23,661,022.16 6,207,032.78
Dividends payable
Other payables 14,800,326.37 14,215,414.94
Non-current liabilities due
within a year
Other current liabilities
Total current liabilities 762,410,875.43 989,893,612.27
Non-Current Liabilities:
Long term borrowings
Bonds payable 400,000,000.00
Long term accounts payable
Special accounts payable
Predicted liabilities
Deferred income tax liability
Other non-current liabilities 2,050,000.00 1,506,000.00
Total non-current liabilities 402,050,000.00 1,506,000.00
Total liabilities 1,164,460,875.43 991,399,612.27
Owners’ equity (or shareholders’
equity):
Paid up capital (or capital
392,767,870.00 392,767,870.00
stock)
Capital reserve 531,162,493.88 531,162,493.88
Less: shares in stock
Special reserve
Surplus reserve 148,587,680.61 148,587,680.61
Generic risk reserve
Retained earnings 390,036,890.82 307,273,381.61
Foreign Currency Capital
Owners’ equity (or shareholders’
1,462,554,935.31 1,379,791,426.10
equity)
Total liabilities and owners’ equity
2,627,015,810.74 2,371,191,038.37
(or shareholders’ equity)
Legal Representative: Lai Weixuan Chief Financial Officer: Li Dehua Manager of the Accounting Dept: Hu
Xinglong
44
FIYTA Holdings Ltd. 2013 Semi-Annual Report
3. Consolidated Profit Statement
Prepared by FIYTA Holdings Ltd.
In CNY
Items Amount in the reporting period Amount in the previous period
I. Gross Revenue 1,508,353,766.86 1,483,755,811.36
Including: revenue 1,508,353,766.86 1,483,755,811.36
Interest income
Earned premium
Service charge and
commission income
II. Total operating cost 1,426,809,547.89 1,403,350,279.05
Including: operating costs 970,869,666.64 987,034,886.89
Interest payment
Service charge and
commission payment
Refunded premiums
Compensation
pay-out, net
Net amount of
reserves for reinsurance contract
Policy dividend
payment
Reinsurance
expenses
Business taxes and
9,598,819.57 8,333,683.51
surcharge
Sales costs 315,335,871.86 260,546,992.95
Administrative
78,223,983.74 87,835,143.36
expenses
Financial expenses 47,823,408.80 59,603,871.04
Loss from impairment
4,957,797.28 -4,298.70
of assets
Plus: Income from change of
fair value (loss is stated with “-“)
Investment income
108,440.73 191,373.86
(loss is stated with “-“)
45
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Including: return on
investment in associates and joint 108,440.73 191,373.86
ventures
Exchange income
(loss expressed with “-“)
III. Operating Profit (loss is stated
81,652,659.70 80,596,906.17
with “-“)
Plus: Non-operating income 1,561,438.20 1,841,642.65
Less: Non-operating
246,186.21 105,428.22
expenses
Including: Loss from
27,315.73 11,895.85
disposal of non-current assets
IV. Total profit (total loss is stated
82,967,911.69 82,333,120.60
with “-“)
Less: Income tax expense 13,755,185.77 17,173,824.32
V. Net Profit (net loss is stated with
69,212,725.92 65,159,296.28
“-“)
Including: Net profit realized
by the consolidatee realized 0.00 -2,130,265.54
before the consolidation
Net profit attributable to the
69,097,419.87 65,289,417.62
parent company’s owner
Minority shareholders’
115,306.05 -130,121.34
gain/loss
VI. Earnings per share: -- --
(I) Basic earnings per share 0.176 0.166
(II) Diluted earnings per
0.176 0.166
share
VII. Other comprehensive income -3,563,383.18 -1,485,490.34
VIII. Total comprehensive income 65,649,342.74 63,673,805.94
Total comprehensive income
attributable to the owner of the 65,548,759.81 63,798,815.91
parent company
Total comprehensive income
attributable to minority 100,582.93 -125,009.97
shareholders
Legal Representative: Lai Weixuan Chief Financial Officer: Li Dehua Manager of the Accounting Dept: Hu
Xinglong
46
FIYTA Holdings Ltd. 2013 Semi-Annual Report
4. Profit Statement, Parent Company
Prepared by FIYTA Holdings Ltd.
In CNY
Items Amount in the reporting period Amount in the previous period
I. Revenue 44,773,085.81 82,860,262.56
Less: Business costs 6,806,000.42 46,268,068.51
Business taxes and
3,026,540.05 4,005,146.32
surcharge
Sales costs 3,846,026.66 7,329,606.71
Administrative expenses 21,162,716.18 20,299,535.62
Financial expenses 460,822.78 12,666,803.25
Loss from impairment of
210,607.55 -4,298.70
assets
Plus: Income from change of
fair value (loss is stated with “-“)
Investment income (loss
75,079,918.87 76,151,513.91
is stated with “-“)
Including: return on
investment in associates and joint 108,440.73 191,373.86
ventures
II. Operating Profit (loss is stated
84,340,291.04 68,446,914.76
with “-“)
Plus: Non-operating income 1,000,834.62 1,373,691.87
Less: Non-operating
180,000.00 92,474.40
expenses
Including: Loss from
0.00 872.93
disposal of non-current assets
III. Total profit (total loss is stated
85,161,125.66 69,728,132.23
with “-“)
Less: Income tax expense 2,397,616.45 0.00
IV. Net Profit (net loss is stated
82,763,509.21 69,728,132.23
with “-“)
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per
share
VI. Other comprehensive income 0.00 0.00
47
FIYTA Holdings Ltd. 2013 Semi-Annual Report
VII. Total comprehensive income 82,763,509.21 69,728,132.23
Legal Representative: Lai Weixuan Chief Financial Officer: Li Dehua Manager of the Accounting Dept: Hu
Xinglong
5. Consolidated Cash Flow Statement
Prepared by FIYTA Holdings Ltd.
In CNY
Items Amount in the reporting period Amount in the previous period
I. Net cash flows arising from
operating activities:
Cash received from sales of
1,653,001,232.85 1,568,077,993.80
goods and supply of labor
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 former
insurance contract premium
Net cash received from
reinsurance business
Net increase of insurance
reserve and investment
Net increase from disposal
of transactional financial asset
Cash received from interest,
service charge and commission
Net increase of borrowings
Net increase of fund from
repurchases
Rebated taxes received
Other operation activity
18,388,403.90 12,564,978.28
related cash receipts
Subtotal of cash flow in from
1,671,389,636.75 1,580,642,972.08
operating activity
Cash paid for purchase of 1,104,945,928.41 1,262,119,139.90
48
FIYTA Holdings Ltd. 2013 Semi-Annual Report
goods and reception of labor
services
Net increase of loans and
advances to customers
Net increase of due from
central bank and due from banks
Cash paid for indemnity of
original insurance contract
Cash paid for interest,
service charge and commission
Cash paid for insurance
policy dividend
Cash paid to and for staff 197,357,609.04 180,306,617.10
Taxes paid 87,867,910.11 87,831,415.58
Other business related cash
147,223,388.62 143,733,003.12
payments
Subtotal of cash flow out from
1,537,394,836.18 1,673,990,175.70
operating activity
Net cash flow arising from
133,994,800.57 -93,347,203.62
operating activities
II. Cash flows arising from
investment activities:
Cash received from recovery
of investment
Cash received from
investment income
Net amount of cash received
from disposal of fixed assets,
681,262.51 53,358.08
intangible assets and 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
681,262.51 53,358.08
investment activity
Cash paid for
58,489,580.79 47,475,391.95
construction/purchase of fixed
49
FIYTA Holdings Ltd. 2013 Semi-Annual Report
assets, intangible assets and
other long term assets
Cash paid for investment 28,050,000.00
Net increase of
hypothecated loans
Net cash received from
payment by subsidiaries and other
operating units
Other investment related
cash payments
Subtotal of cash flow out from
58,489,580.79 75,525,391.95
investment activity
Net cash flow arising from
-57,808,318.28 -75,472,033.87
investment activities
III. Cash flows arising from fund
raising activities:
Cash received from
absorption of investment
Incl.: Cash received from
subsidiaries’ absorption of minority
shareholders’ investment
Cash received from
510,892,441.63 917,000,000.00
borrowings
Cash received from bond
issuing
Other fund-raising related
125,000,000.00
cash receipts
Subtotal of cash flow in from fund
510,892,441.63 1,042,000,000.00
raising activity
Cash paid for liabilities
605,167,616.01 740,902,058.84
repayment
Cash paid for dividend/profit
distribution or repayment of 25,666,632.98 100,936,223.78
interest
Including: Dividend and
profit paid by subsidiaries to
minority shareholders
Other fund-raising related
502,986.00 1,031,250.90
cash payments
50
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Subtotal of cash flow out from fund
631,337,234.99 842,869,533.52
raising activity
Net cash flow arising from
-120,444,793.36 199,130,466.48
fund-raising activities
IV. Influence from change of
exchange rate upon cash and -672,558.62 24,225.07
cash equivalents
V. Net increase of cash and cash
-44,930,869.69 30,335,454.06
equivalents
Plus: Opening balance of
140,420,994.71 179,972,430.02
cash and cash equivalents
VI. Ending balance of cash and
95,490,125.02 210,307,884.08
cash equivalents
Legal Representative: Lai Weixuan Chief Financial Officer: Li Dehua Manager of the Accounting Dept: Hu
Xinglong
6. Cash Flow Statement, Parent Company
Prepared by FIYTA Holdings Ltd.
In CNY
Items Amount in the reporting period Amount in the previous period
I. Net cash flows arising from
operating activities:
Cash received from sales of
45,381,348.64 53,110,671.45
goods and supply of labor
Rebated taxes received 0.00 0.00
Other operation activity
15,856,708.91 70,163,474.04
related cash receipts
Subtotal of cash flow in from
61,238,057.55 123,274,145.49
operating activity
Cash paid for purchase of
goods and reception of labor 9,645,155.22
services
Cash paid to and for staff 21,485,348.55 21,344,665.48
Taxes paid 9,100,088.39 22,736,599.85
Other business related cash
191,779,618.43 290,935,269.71
payments
Subtotal of cash flow out from 222,365,055.37 344,661,690.26
51
FIYTA Holdings Ltd. 2013 Semi-Annual Report
operating activity
Net cash flow arising from
-161,126,997.82 -221,387,544.77
operating activities
II. Cash flows arising from
investment activities:
Cash received from recovery
of investment
Cash received from
34,907,884.20
investment income
Net amount of cash received
from disposal of fixed assets,
672,000.00 33,000.00
intangible assets and 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
672,000.00 34,940,884.20
investment activity
Cash paid for
construction/purchase of fixed
2,795,509.98 7,408,400.71
assets, intangible assets and
other long term assets
Cash paid for investment 0.00 0.00
Net cash received from
payment by subsidiaries and other 0.00 0.00
operating units
Other investment related
0.00 0.00
cash payments
Subtotal of cash flow out from
2,795,509.98 7,408,400.71
investment activity
Net cash flow arising from
-2,123,509.98 27,532,483.49
investment activities
III. Cash flows arising from fund
raising activities:
Cash received from
absorption of investment
Cash received from 446,900,000.00 882,000,000.00
52
FIYTA Holdings Ltd. 2013 Semi-Annual Report
borrowings
Cash received from bond
0.00
issuing
Other fund-raising related
cash receipts
Subtotal of cash flow in from fund
446,900,000.00 882,000,000.00
raising activity
Cash paid for liabilities
289,800,000.00 583,700,000.00
repayment
Cash paid for dividend/profit
distribution or repayment of 12,877,937.77 81,083,348.04
interest
Other fund-raising related
502,986.00 1,031,250.90
cash payments
Subtotal of cash flow out from fund
303,180,923.77 665,814,598.94
raising activity
Net cash flow arising from
143,719,076.23 216,185,401.06
fund-raising activities
IV. Influence from change of
exchange rate upon cash and
cash equivalents
V. Net increase of cash and cash
-19,531,431.57 22,330,339.78
equivalents
Plus: Opening balance of
51,372,778.02 49,327,161.12
cash and cash equivalents
VI. Ending balance of cash and
31,841,346.45 71,657,500.90
cash equivalents
Legal Representative: Lai Weixuan Chief Financial Officer: Li Dehua Manager of the Accounting Dept: Hu
Xinglong
7. Consolidated Statement of Changes in Owner’s Equity
Prepared by FIYTA Holdings Ltd.
Amount in the reporting period
In CNY
Amount in the reporting period
Items
Owner’s equity attributable to the parent company Minority Total
53
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Paid equity owners’
up Less: Specia Surplu Generi Retain equity
Capital
capital shares l s c risk ed
reserv Others
(or in reserv reserv reserv earnin
e
capital stock e e e gs
stock)
392,76 525,50 148,58 386,98
I. Ending balance of the -7,169, 2,407,59 1,449,085
7,870. 6,952. 7,680. 4,676.
previous year 555.04 7.94 ,223.07
00 78 61 78
Plus: Change in
accounting policy
Correction of previous
errors
Others
392,76 525,50 148,58 386,98
II. Opening balance of the report -7,169, 2,407,59 1,449,085
7,870. 6,952. 7,680. 4,676.
year 555.04 7.94 ,223.07
00 78 61 78
III. Decrease/increase of the 69,097
-3,548, 100,582. 65,649,34
report year (decrease is stated ,419.8
660.06 93 2.74
with “-“) 7
69,097
115,306. 69,212,72
(I) Net profit ,419.8
05 5.92
7
(II) Other comprehensive -3,548, -14,723. -3,563,38
income 660.06 12 3.18
69,097
-3,548, 100,582. 65,649,34
Subtotal of the above (I) and (II) ,419.8
660.06 93 2.74
7
(III) Owners’ input and decrease
of capital
1. Capital invested by the
owners
2. Amount of payment for shares
charged to owners’ equity
3. Others
(IV) Profit distribution
1. Provision of surplus reserve
2. Provision of general risk
reserve
54
FIYTA Holdings Ltd. 2013 Semi-Annual Report
3. Distribution to the owners (or
shareholders)
4. Others
(V) Internal carry-forward 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 with surplus
reserve
4. Others
(VI) Special reserve
1. Provision in the report period
2. Applied in the report period
(VII) Others
392,76 525,50 148,58 456,08 -10,71
IV. Ending balance of the report 2,508,18 1,514,734
7,870. 6,952. 7,680. 2,096. 8,215.
period 0.87 ,565.81
00 78 61 65 10
Amount of Previous Year
In CNY
Amount of Previous Year
Owner’s equity attributable to the parent company
Paid
up Less: Specia Surplu Generi Retain Total
Items Minority
Capital
capital shares l s c risk ed owners’
reserv Others equity
(or in reserv reserv reserv earnin equity
e
capital stock e e e gs
stock)
392,76 581,60 131,32 327,52
I. Ending balance of the -7,355, 2,751,24 1,428,615
7,870. 6,952. 3,437. 1,960.
previous year 528.69 9.66 ,942.11
00 78 78 58
Plus: Retroactive
adjustment arising from
consolidation of the enterprises
under common control
Plus: Change in
accounting policy
55
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Correction of previous
errors
Others
392,76 581,60 131,32 327,52
II. Opening balance of the report -7,355, 2,751,24 1,428,615
7,870. 6,952. 3,437. 1,960.
year 528.69 9.66 ,942.11
00 78 78 58
III. Decrease/increase of the -56,10 17,264 59,462
185,97 -343,651 20,469,28
report year (decrease is stated 0,000. ,242.8 ,716.2
3.65 .72 0.96
with “-“) 00 3 0
116,00
-343,880 115,659,8
(I) Net profit 3,746.
.20 65.83
03
(II) Other comprehensive 185,97 186,202.1
228.48
income 3.65 3
116,00
185,97 -343,651 115,846,0
Subtotal of the above (I) and (II) 3,746.
3.65 .72 67.96
03
-56,10
(III) Owners’ input and decrease -56,100,0
0,000.
of capital 00.00
00
1. Capital invested by the
owners
2. Amount of payment for shares
charged to owners’ equity
-56,10
-56,100,0
3. Others 0,000.
00.00
00
17,264 -56,54
-39,276,7
(IV) Profit distribution ,242.8 1,029.
87.00
3 83
17,264 -17,26
1. Provision of surplus reserve ,242.8 4,242.
3 83
2. Provision of general risk
reserve
-39,27
3. Distribution to the owners (or -39,276,7
6,787.
shareholders) 87.00
00
4. Others
56
FIYTA Holdings Ltd. 2013 Semi-Annual Report
(V) Internal carry-forward 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 with surplus
reserve
4. Others
(VI) Special reserve
1. Provision in the report period
2. Applied in the report period
(VII) Others
392,76 525,50 148,58 386,98
IV. Ending balance of the report -7,169, 2,407,59 1,449,085
7,870. 6,952. 7,680. 4,676.
period 555.04 7.94 ,223.07
00 78 61 78
Legal Representative: Lai Weixuan Chief Financial Officer: Li Dehua Manager of the Accounting Dept: Hu
Xinglong
3. Statement of Change in Owner’s Equity, Parent Company
Prepared by FIYTA Holdings Ltd.
Amount in the reporting period
In CNY
Amount in the reporting period
Paid up
Less: Generic Total
Items capital (or Capital Special Surplus Retained
shares in risk owners’
capital reserve reserve reserve earnings
stock reserve equity
stock)
I. Ending balance of the previous 392,767,8 531,162,4 148,587,6 307,273,3 1,379,791
0.00 0.00 0.00
year 70.00 93.88 80.61 81.61 ,426.10
Plus: Change in accounting
policy
Correction of previous
errors
Others
II. Opening balance of the report 392,767,8 531,162,4 148,587,6 307,273,3 1,379,791
0.00 0.00 0.00
year 70.00 93.88 80.61 81.61 ,426.10
57
FIYTA Holdings Ltd. 2013 Semi-Annual Report
III. Decrease/increase of the
82,763,50 82,763,50
report year (decrease is stated
9.21 9.21
with “-“)
82,763,50 82,763,50
(I) Net profit
9.21 9.21
(II) Other comprehensive income
82,763,50 82,763,50
Subtotal of the above (I) and (II)
9.21 9.21
(III) Owners’ input and decrease
of capital
1. Capital invested by the owners
2. Amount of payment for shares
charged to owners’ equity
3. Others
(IV) Profit distribution
1. Provision of surplus reserve
2. Provision of general risk
reserve
3. Distribution to the owners (or
shareholders)
4. Others
(V) Internal carry-forward 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 with surplus
reserve
4. Others
(VI) Special reserve
1. Provision in the report period
2. Applied in the report period
(VII) Others
IV. Ending balance of the report 392,767,8 531,162,4 148,587,6 390,036,8 1,462,554
0.00 0.00 0.00
period 70.00 93.88 80.61 90.82 ,935.31
Amount of Previous Year
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
In CNY
Amount of Previous Year
Paid up
Less: Generic Total
Items capital (or Capital Special Surplus Retained
shares in risk owners’
capital reserve reserve reserve earnings
stock reserve equity
stock)
I. Ending balance of the previous 392,767,8 531,162,4 131,323,4 191,171,9 1,246,42
0.00 0.00 0.00
year 70.00 93.88 37.78 83.15 5,784.81
Plus: Change in accounting
policy
Correction of previous
errors
Others
II. Opening balance of the report 392,767,8 531,162,4 131,323,4 191,171,9 1,246,42
0.00 0.00 0.00
year 70.00 93.88 37.78 83.15 5,784.81
III. Decrease/increase of the
17,264,24 116,101,3 133,365,
report year (decrease is stated 0.00 0.00 0.00 0.00 0.00
2.83 98.46 641.29
with “-“)
172,642,4 172,642,
(I) Net profit
28.29 428.29
(II) Other comprehensive income
172,642,4 172,642,
Subtotal of the above (I) and (II)
28.29 428.29
(III) Owners’ input and decrease of
capital
1. Capital invested by the owners
2. Amount of payment for shares
charged to owners’ equity
3. Others
17,264,24 -56,541,0 -39,276,7
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00
2.83 29.83 87.00
17,264,24 -17,264,2
1. Provision of surplus reserve
2.83 42.83
2. Provision of general risk
reserve
3. Distribution to the owners (or -39,276,7 -39,276,7
shareholders) 87.00 87.00
4. Others
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
(V) Internal carry-forward 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 with surplus
reserve
4. Others
(VI) Special reserve
1. Provision in the report period
2. Applied in the report period
(VII) Others
IV. Ending balance of the report 392,767,8 531,162,4 148,587,6 307,273,3 1,379,79
0.00 0.00 0.00
period 70.00 93.88 80.61 81.61 1,426.10
Legal Representative: Lai Weixuan Chief Financial Officer: Li Dehua Manager of the Accounting Dept: Hu
Xinglong
III. Company Profile
Fiyta Holdings Ltd. (hereinafter referred to as the Company) was reorganized, incorporated and renamed from Shenzhen
Fiyta Timer Industry Company on December 25 1992 with approval by the General Office of Shenzhen Municipal People’s
Government with Document SHEN FU BAN FU [1992] No. 1259 and with China National Aero-Technology Import &
Export Corporation Shenzhen Industry & Trade Center (which was renamed as China National Aero-Technology
Corporation Shenzhen) as the sponsor.
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.
On January 30, 1997, with approval by Shenzhen Municipal Administration for Industry and Commerce, the Company was
renamed as Shenzhen Fiyta Holdings Ltd.
On July 4, 1997, according to the equity assignment agreement between China National Aero-Technology Corporation
Shenzhen (CATIC Shenzhen Corporation) and CATIC Shenzhen Holdings Limited ( with original name of Shenzhen
CATIC Group Co., Ltd. (hereinafter referred to as CATIC Shenzhen), CATIC Shenzhen Corporation assigned 72.36 million
corporate shares (taking 52.24% of the Company’s total shares) to CATIC Shenzhen. From then on, the Company’s
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
controlling shareholder turned to be CATIC Shenzhen from CATIC Shenzhen Corporation.
On October 26, 2007, the Company implemented the equity separation reform, according to which the shareholder of the
Company’s non-negotiable shares would pay shares to the whole shareholders of negotiable shares registered on the
equity record day as designated in the equity separation reform plan at the rate of 3.1 shares for every 10 shares held by
them while the Company’s total 249,317,999 shares remained unchanged. So far, after the equity separation reform, the
proportion of the Company’s shares held by CATIC Shenzhen reduced from 52.24% to 44.69%.
On February 29, 2008, due to expansion of the Company’s business scope and with approval by Shenzhen Municipal
Administration for Industry and Commerce, the Company’s enterprise corporate business licence number was changed
from 4403011001583 into 440301103196089.
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 April 8, 2011, the Company took the total share capital of 280,548,479 shares as at December 31, 2010 as the base,
converted its capital reserve into share capital at the rate of 4 shares for every 10 shares. After the conversion, the
Company’s total share capital became 392,767,870 shares.
The principal business activities of the Company and its subsidiaries are: production and sales of various pointer type
quartz watches and units, spares and parts, various timing apparatus, processing and wholesale of K gold watches and
ornament watches (for production site, separate application should be submitted); domestic trade, materials supply and
sales (excluding the commodities for exclusive operation, exclusive control and monopoly); property management and
lease; import and export, design and construction; import and export business (implemented according to Document
SHEN MAO GUAN DENG ZHENG ZI NO. 2007-072). Legal Representative:Lai Weixuan; The Company’s registered
office address: FIYTA Technology Building, Gaoxin S. Road One, Nanshan District, Shenzhen.
The Company’s parent is CATIC Shenzhen and the eventual controller is Aviation Industry Corporation of China
(hereinafter referred to as AVIC).
The Company has established the Shareholders’ General Meeting, the Board of Directors, the Supervisory Committee,
the Audit Committee, the Strategy Committee and the Nomination, Remuneration and Assessment Committee as the
governance organs, etc. The Company has also established such function departments as the Comprehensive
Administration Department, Human Resource Department, Finance Department, Audit Department, General Office of the
Board of Directors, Property Department, Research & Development Department, Innovation and Design Department.
The financial statements were approved by the Board of Directors of the Company for issuing on August 20, 2013.
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
IV. Principal Accounting Policies, Accounting Estimate and Correction of Previous
Errors
1. Base for Preparation of the Financial Statements
The Group’s financial statements are prepared with the assumption of continuous operation and according to the actually
incurred transactions and matters. According to the Enterprise Accounting Standards – Basic Standards and 38 Specific
Accounting Standards promulgated by the Ministry of Finance in February 2006 as well as the successively published
application guides, interpretation and other relevant regulations of the enterprise accounting standards (hereinafter all
referred to as the Enterprise Accounting Standards) and the provisions on information disclosure as specified in the Rules
for the Compilation and Submission of Information Disclosure by Companies That Offer Securities to the Public No.15 –
General Provisions of Financial Report (Revision in 2010) promulgated by China Securities Regulatory Commission.
According to the relevant provisions of the enterprise accounting standards, the Company takes the accrual basis as the
base of accounting. Except some financial instruments, these financial statements are all measured based on historical
cost. In case any asset experiences impairment, the impairment reserve is provided according to the relevant provisions.
2. Declaration on Adherence to the Accounting Standards for Enterprises
The financial statements prepared by the Group comply with the enterprise accounting standards, have
truly and fully reflected the financial position of the Company and the Group as at June 30, 2013 and
such information as its operation results and cash flow of the first half year of 2013. In addition, the
financial statements of Company and the Group comply with the Rules for the Compilation and
Submission of Information Disclosure by Companies That Offer Securities to the Public No.15 – General
Provisions of Financial Report (Revision in 2010) concerning the requirement on disclosure of financial
statements and the notes promulgated by China Securities Regulatory Commission in all material
aspects.
3. Fiscal Year
The Group classifies accounting period into annual and semi-annual periods. A mid-term accounting period refers to a
reporting period shorter than an entire fiscal year. The Group’s fiscal year adopts the Gregorian calendar year, namely
from January 1 to December 31 of a year.
4. Functional currency for bookkeeping
CNY is the currency in the major economic environment where the Company’s and its domestic subsidiaries’ premises are
located. The Company and its domestic subsidiaries take CNY as the recording currency.
Except Switzerland based Montres Chouriet SA (hereinafter referred to as the Swiss Company), a subsidiary of FIYTA
(Hong Kong) Limited (hereinafter referred to as FIYTA (Hong Kong) which takes Swiss Franc as the recording currency
according to the major economic environment of the place where its premises is located, the other overseas subsidiaries,
including Harmony World Watches International Limited (World Watch International), one of the subsidiaries of Shenzhen
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
Harmony World Watches Center Co., Ltd. (Harmony), FIYTA (Hong Kong) Limited, 68-Station Limited (68-Station), one of
FIYTA (Hong Kong) Limited’s subsidiaries, NATURE ART LTD., an entity controlled by 68-Station for special purpose
(Nature Art) and PROTOP LTD (PROTOP) as its recording currency according to the major economic environment of the
place where their premises are located.
The currency adopted by the Group in preparation of the financial statements is Chinese yuan (CNY).
5. Accounting for consolidation of enterprises under the common control and not under the
common control
(1) Consolidation of enterprises under the common control
Consolidation of an enterprise under the common control refers to an enterprise involved in consolidation is under the
control by one party or more before and after consolidation while such control is not temporary. In consolidation of the
enterprises not under the common control, the party that has acquired the control power over the other enterprises
involved in the consolidation refers to the consolidator and the other enterprise(s) involved in the consolidation is/are the
consolidatee(s). Date of consolidation refers to the date when the consolidator actually acquires the control over the
consolidatee.
The asset and liability acquired by the consolidator should be measured based on the book value of the consolidatee on
the date of consolidation.The difference between the book value of net assets acquired by the consolidator, the book
value of the consolidate valuable consideration paid or the total book value of the issued shares was used to adjust the
capital reserve (capital stock premium . In case the capital reserve (capital stock premium) is not enough to be
written-down, the retained earnings are adjusted.
The direct expenses incurred in enterprise consolidation to the consolidating party is charged to the current gain and loss.
(2) Enterprise consolidation not under the common control
Consolidation of a party not under the same control refers to an enterprise involved in consolidation is not under the same
eventual control by one party or more before and after consolidation. In consolidation of the enterprises not under the
same control, the party that has acquired the control power over the other enterprises involved in the consolidation refers
to the purchaser and the other enterprise(s) involved in the consolidation is/are the purchasee. Date of purchase refers to
the date when the purchaser actually acquires the control over the purchasee.
For the consolidation of enterprises not under the same control, the consolidation costs consist of the fair value of the
assets paid, liabilities incurred or assumed and the issued equity based securities for the purpose of acquisition of the
control power over the purchasee and expenses incurred in connection with the consolidation, including the charges for
audit, law service, appraisal and consulting and other administrative costs are charged to the current gains and losses.
The transaction costs of the equity securities or debt securities issued by the purchaser as the consolidation consideration
are counted to the initially recognized amount of the equity securities or debt securities. The contingent consideration
involved is recorded in the consolidation costs based on the fair value as at the purchase date; for the contingent
consideration necessary to be adjusted against the conditions which already exist as at the purchase date or further
evidence within 12 months after the purchase date, the consolidated goodwill should be adjusted correspondingly. In case
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
of enterprise consolidation realized by steps through several exchange transactions, in the Group’s consolidated financial
statements, the equity of the purchasee held before the purchase date shall be re-measured based on the fair value of the
equity as at the purchase date; the difference between the fair value and its book value is recorded in the current return on
investment as at the purchase date; meanwhile, the other comprehensive income in connection with the equity of the
purchasee held before the purchase date shall be converted into the current return on investment; the consolidation cost
is the sum of the fair value of the purchasee’s equity as at the purchase date held before the purchase date and the fair
value of the purchasee’s equity as at the purchase date increased as at the purchase date.
The consolidation cost incurred to the purchaser and the recognizable net asset acquired from consolidation are
measured based on the fair value of the purchase day. The difference of the consolidation cost greater than the fair value
share of the recognizable net asset on the date of purchase is recognized as goodwill. In case the consolidation cost is
less than the share of the faire value of the purchasee’s distinguishable net assets, the Company first of all rechecks the
fair value of the purchasee’s various distinguishable assets, liabilities or contingent liabilities and measurement of the
consolidation costs. In case the consolidation cost is still smaller than the share of the fair value of the purchasee’s
distinguishable net assets acquired in the consolidation after the recheck, its difference is recorded in the current gain and
loss.
In case the purchasee’s offsetable provisional difference acquired by the purchaser is not recognized due to that it does
not comply with the conditions for recognition of the deferred income tax asset, within 12 months after the purchase date,
if the new or further information as obtained shows that the relevant conditions as at the purchase date already exist, it is
predicted that the economic benefit of the purchasee’s offsetable provisional difference as at the purchase date can be
realized, the relevant deferred income tax asset is recognized; meanwhile, the goodwill is reduced. In case the goodwill is
not enough to be written-down, the difference shall be recognized as the current gain/loss. Except the aforesaid conditions,
the deferred income tax asset recognized in connection with the enterprise consolidation is recorded in the current
gain/loss.
6. Preparation of Consolidated Financial Statements
(1) Method for Preparation of Consolidated Financial Statements
The consolidation range of consolidated financial statements is determined with control as the base. Control refers to that
the Company is able to decide the financial and operating policy of the investee, the power against which the Company is
able to obtain interest from the operation activities of the investee. Consolidation range includes the Company and all the
subsidiaries. A subsidiary refers to an enterprise or entity under the Company’s control.
(2) The relevant accounting process should be disclosed for the equity in the same subsidiary
bought in and then sold out , or sold out and then bought within two fiscal years in succession
The Group consolidates the subsidiaries commencing from the date when the subsidiaries’ net assets and production and
operating decision making power are actually under the Company’s control. The consolidation shall stop commencing
from the date when the actual control authority is lost. For a subsidiary to be disposed, the operation result and cash flow
prior to the day of disposal have been properly included in the consolidated profit statement and consolidated cash flow
statement; for a subsidiary to be disposed in the current period, the consolidated balance sheet at the beginning of the
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
period is not adjusted. For the subsidiaries increased through consolidation of the enterprises not under the same control,
the operating results and cash flow after the purchase date have been properly included in the consolidated profit
statement and consolidated statement of cash flow while the amount at the beginning of the period and comparative
amount in the consolidated financial statements shall not be adjusted. For the subsidiaries increased through
consolidation of the enterprises under the same control, the operating results and cash flow from the very period of
consolidation to the consolidation date have been properly included in the consolidated profit statement and consolidated
statement of cash flow; moreover, comparative amount in the consolidated financial statements shall be adjusted at the
same time.
In process of preparation of consolidated statements, in case the accounting policy or fiscal term adopted by the
subsidiaries and the Company are not identical, in preparation of the consolidated financial statements, consolidation is
made after necessary adjustment of the subsidiaries’ financial statements in terms of the Company’s accounting policy or
fiscal term. For the subsidiaries acquired through consolidation of enterprises not under the same control, the financial
statements are adjusted with the fair value of recognizable net assets on the date of purchase as the base.
All the material current account balance, transactions and unrealized profit within the Group are offset at the time of
preparation of the consolidated financial statements.
The part in the subsidiaries’ shareholders’ equity and the net current gain and loss which do not belong to the part held by
the Company are taken as minority equity and minority gain and loss and are respectively listed under the shareholders’
equity and net profit separately in the consolidated financial statement. The part of the current net gain and loss of a
subsidiary belonging to minority shareholders’ equity is presented as “minority shareholders’ gain and loss” under the item
of net profit in the consolidated profit statement. In case the loss of a subsidiary shared by the minority shareholders has
exceeded the share of the owners’ equity of the subsidiary enjoyable by the minority shareholders at the beginning of the
period, the minority shareholders’ equity shall be written-down.
When the control power over an existing subsidiary has lost due to disposal of the investment in partial equity or due to
other reason, the remaining equity shall be re-measured with reference to the fair value as at the date when the control
power got lost. The balance of the sum of the consideration obtained from disposal of the equity and the fair value of the
remaining equity less the portion of the net assets enjoyable in the original subsidiary continuously calculated
commencing from the date of purchase worked out based on the original shareholding proportion is counted to the return
on investment of the very period when the control power was lost. The other comprehensive income in connection with the
investment in the equity of the original subsidiary was altogether transferred to the return on the investment in the very
period when the control power was lost. Afterwards, this part of residual equity undergoes follow-up measurement
according to the Enterprise Accounting Standards No. 2 – Long Term Equity Investment or the Enterprise Accounting
Standards No. 22 – Financial Instrument Recognization and Measurement, etc. For the detail, refer to “Long Term Equity
Investment” or “Financial Instruments”.
7. Recognition of Cash and Cash Equivalent
The Group’s cash and cash equivalents include cash on hand, deposits which may be used for payment at any time and
investment held by the Group with short term (usually due within three months commencing from the date of purchase),
high liquidity, easy to be turned into cash with given amount and very small risk of change in value.
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
8. Transactions in Foreign Currency and Foreign Currency Translation
(1) Transactions in Foreign Currency
In initial recognition of translation in foreign currency when incurs, the translation into amount in recording currency based
on the spot rate (which usually refers to the average of the foreign exchange rate published by the People’s Bank of China
on the very day of incurrence); however, the foreign currency exchange business or transaction involved foreign currency
exchange incurred in the Company is converted into amount in recording currency according to the exchange rate actually
adopted.
(2) Translation for Financial Statements in Foreign Currency
In case the preparation of the consolidated financial statements involves overseas operation, if there is the monetary item
in foreign currency which substantially composes net investment for overseas operation, the exchange difference arising
from the change of exchange rate shall be stated in the item of “the translation differene in foreign currency statement” of
the owner’s equity; in handling the overseas operation, the exchange difference is counted to the current gain and loss.
The financial statements in foreign currency for operation outside Mainland China are translated into statements in
Renminbi after conversion according to the following methods: all the asset and liability items in the balance sheet are
translated based on the spot rate on the balance sheet day. For the owner’s equity type items, except the item of “retained
earnings”, the other items are translated based on the spot exchange rate at the time of incurrence. The income and
expense items in the statement of profit are translated based on the current average exchange rate on the date of
transaction. The retained earnings at year beginning is the retained profit of the previous year end after translation. The
retained profit at year end is calculated and stated based on the items of the profit distribution after translation. The
difference between the asset items and liability items and the total of the owners’ equity items after translation is
recognized as other comprehensive income and separately stated under the item of shareholders’ equity as the
translation discrepancy of statements in foreign currency. In disposal of operation outside Mainland China with the
control power lost, the difference from translation of statements in foreign currency stated under the item of owner’s equity
in the balance sheet and in connection with foreign operation is, all or based on the proportion of operation outside
mainland China as disposed, charged to the disposal of current gain and loss.
Foreign currency cash flow and cash flow of overseas subsidiaries are translated based on the current average exchange
rate as at the date when the cash flow incurs. The amount affected by the change of exchange rate upon cash is used as
the adjustment item and is separately presented in the cash flow statement.
The amount at year beginning and actual amount of the previous year are stated based on the amount of the financial
statements of the previous year after translation.
9. Financial instruments
(1) Classification of Financial Instruments
Classification of financial assets
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
Financial assets are classified into the following categories at the time of initial recognition: financial asset measured
based on the fair value and whose change is recorded in the current gain and loss, held-to-maturity investment, loan,
accounts receivable and available for sale asset.
Classification of financial liabilities
Financial liabilities are classified into financial liabilities and other financial liabilities which are measured based on the fair
value at the time of initial recognition and whose change is charged to the current gain and loss.
(2) Basis for Recognition of Financial Instruments and Measurement Method
Recognition and Measurement of Financial Instruments
For trading of financial assets in general way, accounting recognition and termination recogniion are conducted on the
date of transaction. Financial assets are classified into the following categories at the time of initial recognition: financial
asset measured based on the fair value and whose change is recorded in the current gain and loss, held-to-maturity
investment, loan, accounts receivable and available for sale asset. Financial asset is measured based on the fair value at
initial recognition. For the financial asset which is measured based on the fair value and the change is charged to the
current gain and loss, the relevant transaction expenses are directly charged to the current gain and loss; for other types
of financial asset, the relevant transaction expenses are charged to the initially recognized amount. The Group’s financial
assets are mainly the accounts receivable.
Accounts receivable refer to the non-derivative financial assets without quotation in the active market and the recoverable
amount fixed or determinable. The Group’s financial assets in term of accounts receivable consist of notes receivable,
accounts receivable and other receivables. Accounts receivable undergoes follow-up measurement by using the effective
interest method based on the amortized cost. The again or loss arising from termination of recognition, incurrence of
impairment or amortization is recorded in the current gains and losses.
Measurement of Financial Liabilities
Financial liabilities are classified into financial liabilities and other financial liabilities which are measured based on the fair
value at the time of initial recognition and whose change is charged to the current gain and loss. Financial liabilities are
measured based on the fair value at initial recognition. For the financial liabilities which are measured based on the fair
value and the change is charged to the current gain and loss, the relevant transaction expenses are directly charged to
the current gain and loss; for other types of financial liabilities, the relevant transaction expenses are charged to the
initially recognized amount. The financial liabilities of the Group are mainly the other financial liabilities and financial
guarantee contract.
① Other financial liabilities
Other financial liabilities undergo follow-up measurement based on the amortized cost by means of actual interest rate
method; the gain or loss arising from the termination of recognition or amortization, is charged to the current gain and loss.
② Financial guarantee contract
For a financial guarantee contact of financial liability which is not specified for measurement based on the fair value and its
change being charged to the current gain and loss, the initial recognition is made based on the fair value; after the initial
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
recognition, the follow-up measurement shall be made for the higher of the amount and the initially recognized amount
determined according to the Accounting Standards for Enterprises No. 13 – Contingencies less the balance of the
accumulated amortized amount as determined according to the Accounting Standards for Enterprises No. 14 – Income.
(3) Basis for Recognition of Transfer of Financial Assets and Measurement Method
Recognition of financial assets in compliance with one of the following conditions shall be terminated: ① the contractual
right for receiving the cash flow of the financial asset is terminated; ② the financial asset has been transferred while
almost all the risks and remuneration in connection with the ownership of the financial asset has been transferred to the
party of transfer in; ③ the financial assets have been transferred although the enterprise has neither transferred nor
retained almost all the risks and remuneration to the ownership of financial assets but the control over the financial asset
has been given up.
In case the enterprise has neither transferred nor retained all the risks and rewards involved in the ownership of the
financial assets but has not given up the control over the financial assets, the concerned financial assets can continue to
be recognized based on the level of the financial assets transferred and the relevant liabilities shall be recognized
correspondingly. The level of the involved financial assets transferred refers to the level of risks the enterprise is
confronted with in change of the financial asset.
In case the overall transfer of the financial assets can satisfy the conditions of termination of recognition, the balance
between the book value of the financial assets as transferred, the consideration received due to the transfer and the sum
of the accumulative amount of change of the fair value recorded in other comprehensive income is recordd in the current
gain and loss.
If partial transfer of financial assets can satisfy the conditions for termination of recognition, the book value of the financial
assets transferred is apportioned based on its relevant fair value between the part with recognition terminated and the part
with recognition not terminated; and the difference between the sum of the consideration received due to the transfer and
the accumulative amount involved in change of the fair value of the part with recognition terminated which should be
recorded in the other comprehensive income and the aforesaid book amount as apportioned is recorded in the current
gain and loss.
(4) Termination of Recognition of Financial Liabilities
The present obligations of financial liabilities have been entirely or partially been eliminated before termination of
recognition of such financial liabilities or part of them. An agreement is concludd between the Group (the debtor) and the
creditor, the existing financial liabilities are replaced by means of undertaking the new financial liabilities while the contract
articles concerning the new financial liabilities and the existing financial liabilities are substantially different, the recognition
of the existing financial liabilities are terminated and at the same time the new financial liabilities are recognized.
In case recognition of financial liabilities is entirely or partially terminated, the difference between the book value of the
part with recognition terminated and the consideration paid (including the non-cash assets transferred out or the new
financial liabilities as undertaken) is recorded in the current gain and loss.
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
(5) Method for Recognition of the Fair Value of Financial Assets and Financial Liabilities
Fair value refers to the amount involved in the assets exchange or settlement of obligation conducted between the two
parties of transaction on volunteer basis in a fair transaction. When there exists active market for financial instruments, the
Group determines the fair value with the quotation in the active market. Quotation in the active market refers to the price
easily and regularly accessable to the exchange, broker, guild, price service agent, etc. and represents the transaction
price actually incurred in the market in fair transaction. In case the financial instruments do not exist in the active market,
the Group uses the value estimation technique to determine its fair value. The value estimation technique includes the
price used in the latest market transaction conducted by the parties familiar with the situation on volunteer basis with
reference to the current fair value of substantially the same other financial instruments, the cash flow discount method and
option pricing model, etc.
(6) Method for Testing Financial Assets (with Accounts Receivable Exclusive) and Provision for
Impairment
The Group inspects the book value of financial assets on the balance sheet date and makes provision for impairment
when there is objective evidence showing that impairment incurs in the financial asset.
(7) In case any undue held-to-maturity investment is reclassified as available-for-sale asset,
specify the intention of holding or the basis of the ability change taken place
Inapplicable
10. Recognition of Provision for Bad Debts of Accounts Receivable and Way of Provision
(1) The determination criteria of bad debts
The Group checks the book value of accounts receivable on the balance sheet day and provides reserve for impairment in
case there exist following objective evidences showing that accounts receivable have experienced impairment: ① A
debtor is involved in serious financial difficulty; ② The debtor breaches the contract, such as breaching contract in
payment of interest or the principal or delaying the payment, etc.; ③ Debtor may get bankrupt or conduct other financial
reorganization; ④ Other objective basis shows impairment incurred in the account receivable.
(2) Provision for Bad Debts
① Criteria for recognizing the reserve for bad debt of the accounts receivable with significant individual amount and with
the reserve for bad debt provided on individual basis and the way of provision
The Group classifies an account receivable with single amount exceeding CNY 800,000.00 and other receivable with
single amount exceeding RMB 500,000.00 as account receivable with significant single amount.
The Group tests impairment of individual accounts receivable with significant single amount, separately tests the financial
assets without impairment incurred, including the impairment test of the portfolio of the financial asset with similar credit
risk characteristics. The accounts receivable in which loss from impairment has been recognized in the individual test shall
no longer undergo impairment test in the portfolio of the accounts receivable with similar credit risk characteristics.
② Basis for determining the accounts receivable with the reserve for bad debt provided based on the combination of the
credit risks and provision of the reserve for bad debt
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
A. Basis for determining the combination of the characteristics of the credit risk
The Group groups the financial assets based on the similarity of the characteristics and relevance of the credit risks for the
accounts receivable with insignificant single amount or with significant amount but not experiencing impairment through
single-item based testing. These credit risks usually reflect a debtor’s ability to repay all the due amount according to the
contract of such assets and are related with the estimation of the future cash flow of the inspected assets.
Basis on determining different combinations:
Items Basis for determining combinations
Grouping based on the accounting age Length of the accounting age
Grouping of the designated accounts The Company does not provide reserve for bad debts for
the reserve due from the employees, payment due from the
subsidiaries in the consolidation range and the sales
revenue from the last settlement day of the supermarket to
the balance sheet day.
B. Way of provision for bad debt as determined based on the combination with the credit risk characteristics
In making impairment test by combination, the amount of the reserve for bad debt is determined according to the
combination structure of the accounts receivable and the similar credit risk characteristics (the debtor’s ability to repay the
debt according to the contract) and based on the historical loss experience, the present economic conditions and the
assessment of the loss already existed in the combination of the predicted accounts receivable.
Method of provision for bad debt based on different combinations:
Items Way of Provision
Grouping based on the accounting age Provision for bad debt based on aging analysis
Grouping of the designated accounts Based on the characteristics of its risk, there exists no risk
of impairment and no reserve for bad debt is provided
a. In grouping, grouping provision approach for provision of bad debt reserve by using the aging analysis method
Ages Provision proportion of the accounts Provision proportion of other
receivable (%) receivables (%)
Within 1 year (including 1 year, the 5 5
same below)
1 to 2 years 10 10
2 to 3 years 30 30
Over 3 years 50 50
b. In grouping, other method is used for provision of bad debt reserve:
Grouping Description Provision proportion of the accounts Provision proportion of other
receivable (%) receivables (%)
Grouping of specific accounts - -
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The Group does not provide bad debt reserve for the reserve receivable from employees, due from subsidiaries which
should be included in the consolidation range, the sales revenue from the last settlement day of the supermarket to the
balance sheet day in the current year because such accounts are highly recoverable and are quite impossible to turn into
bad debt based on past experience.
③ Accounts receivable with insignificant single amount and provision of bad debt reserve on individual basis
For the accounts receivable with insignificant single amount but having the following characteristics, the Group makes
separate impairment test. In case there is objective evidence showing that impairment has taken place, according to the
balance of the present value of future cash flow lower than the book value, loss from impairment is recognized and the
reserve for bad debt is provided, including the account receivable involved with dispute with the other party or lawsuit or
arbitration; the accounts receivable in which there exists evident indication showing that a debtor may possibly be unablel
to implement the obligation of repayment.
(3) Reversal of reserve for doubtful accounts
In case there is objective evidence showing that the value of the account receivable has been recovered while it is
objectively related with matters occurred after recognition of the loss, the loss from impairment originally recognized can
be reversed and is recorded in the current gain and loss. However, the book value of such reversal shall not exceed the
amortized cost as at the date of reversal of such account receivable for which it is assumed not provision for impairment
was made.
(1) Bad debt reserves for accounts receivable with insignificant single amount
The Group classifies an account receivable with single
Criteria for basis or amount for judging significant single amount exceeding CNY 800,000.00 and other receivable
amount with single amount exceeding RMB 500,000.00 as account
receivable with significant single amount.
The Group tests impairment of individual accounts
receivable with significant single amount, separately tests
the financial assets without impairment incurred, including
the impairment test of the portfolio of the financial asset
Method for provision of reserve for bad debt with significant
with similar credit risk characteristics. The accounts
single amount on individual basis.
receivable in which loss from impairment has been
recognized in the individual test shall no longer undergo
impairment test in the portfolio of the accounts receivable
with similar credit risk characteristics.
(2) Accounts receivable for which reserve for bad debt is provided based on the combination
Provision method for
Grouping Description proding bad debt Basis for determining grouping
reserve based on
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
grouping
Grouping based on the
Age Analysis Length of the accounting age
accounting age
The Company does not provide reserve for bad debts for
the reserve due from the employees, payment due from
Grouping of the designated
Other methods the subsidiaries in the consolidation range and the sales
accounts
revenue from the last settlement day of the supermarket
to the balance sheet day.
In the grouping, age analysis is used for provision of reserve for bad debts:
Provision proportion of the
Age Provision proportion of other receivables (%)
accounts receivable (%)
Within 1 year (including 1
5% 5%
year)
1 to 2 years 10% 10%
2 to 3 years 30% 30%
Over 3 years 50% 50%
In grouping, balance percentage is used for provision of reserve for bad debts
Inapplicable
In grouping, other method is used for provision of reserve for bad debts
Grouping Description Method Description
Based on the characteristics of its risk, there exists no risk of
Grouping of the designated accounts
impairment and no reserve for bad debt is provided
(3) Accounts receivable with insignificant single amount and provision of bad debt reserve on
individual basis
For the accounts receivable with insignificant single amount but having
the following characteristics, the Group makes separate impairment test.
In case there is objective evidence showing that impairment has taken
place, loss for impairment is recognized based on the difference of the
Reason of providing reserve for bad
present value of future cash flow lower than the book value and reserve
debt on individual basis
for bad debt is provided, including the accounts receivable involving
dispute or lawsuit/arbitration with the other party and the accounts
receivable in which there exists evident indication showing that a debtor
may possibly be unable to implement the obligation of repayment.
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11. Inventories
(1) Classification
Inventories mainly include raw materials, goods in process, commodity stocks, etc.
(2) Pricing for delivered inventories
Pricing method: others
Inventories are priced based on the actual cost at the time of acquisition. Inventory costs include purchase cost,
processing cost and other costs. Inventories are priced respectively according to the weighted average (for FIYTA watch
stocks), specific identification (for famous brand watch stocks) and first in first out (for raw materials for FIYTA watches) at
the time of procurement and delivery.
(3) Basis for determination of the net realizable value of inventories and the method for provision
of the 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 process of normal
production and operation. In determining the net realizable value of inventory, with the obtained valid evidence as the
base, the purpose of holding the inventory and the influence from the events after the balance sheet day is taken into
consideration at the same time. Including:
① For the inventories in stock directly for sale, including finished products, commodities and materials for sale, etc., their
realizable net value is determined based on the amount of the estimated sales prices of such inventories less the
estimated sales expenses and relevant taxes.
②For the material inventories necessary to be processed, their realizable net value is the amount of the estimated sales
price of the finished products as produced less the estimated costs to occur up to the time of completion, estimated sales
expenses and relevant taxes in process of normal production and operation.
The Company provides the reserve for price falling of inventories based on the classification of models for the self-made
FIYTA watch inventories.
For the world famous watches under distribution, the Company provides reserve for price falling of inventories on
individual basis.
For the raw materials for FIYTA watches, based on the terminal sales status of FIYTA finished watches, reserve for price
falling of inventories is provided with interchangeability of spares and parts and specialized classification of applications of
materials taken into consideration.
On the balance sheet day, inventories are measured based on the lower of the cost and the net realizable value. Provision
for price falling of inventory is made when the net realizable value is lower than the cost.
After provision for price falling of inventories, in case the influencing element for previous reduction of the inventory value
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
has disappeared, causing the realizable net value of the inventory higher than the book value, the provision for price
falling of the inventory originally made can be reversed and the reversed amount is charged to the current gain and loss.
(4) Inventory System
The stock-taking system for inventories is perpetual inventory system.
The Company adopts the perpetual inventory method for its inventory system.
(5) Amortization of low-value consumption goods and packing materials
Low-value consumption goods
Amortization method: One-off write-off method.
Easily-consumed articles with low value is to be amortized in lump sum at the time of requisition.
Packing materials
Amortization method: One-off write-off method.
Packing materials are amortized based on one-off write-off method at the time of requisition.
12. Long-term equity investment
(1) Determination of the investment cost
For long term equity investment formed from enterprise consolidation, such as the long term equity investment obtained
from consolidation of the enterprises under the same control, the share of the book value of the owners’ equity in the
parties consolidated as obtained on the date of consolidation is taken as the initial investment cost. Through long term
equity investment by means of consolidation of enterprises not under the same control, the enterprise consolidation costs
include the sum of the assets paid by the purchaser, the liabilities incurred or undertaken, and the fair value of the eqity
securities issued. The agency fees for audit, legal services, appraisal and consulting services, etc. incurred in
consolidation of enterprises and other relevant administrative expenses incurred to the purchaser should be recorded in
the current gain and loss at the time of incurrence. The purchaser should count the trading expenses of equity securities
or liability securities issued as the consolidation consideration to the amount of initial recognition of the equity securities or
liability securities.
The other equity investment except the long term equity investment formed from enterprise consolidation is initially
measured based on the costs; the cost is determined based on the cash payment actually paid by the Group, the fair
value of the equity securities issued by the Group, value as specified in the investment contract or agreement, the fair
value or the original book value of the assets surrendered in process of non-monetary asset exchange, its own fair value
of the long term equity investment, etc. depending on the different ways of acquiring the long term equity investment.
Investment costs include the expenses, taxes and other necessary expenditures directly connected with the acquisition of
the long term equity investment.
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
(2) Follow-up Measurement and Gain and Loss Recognition
For a long term equity investment which does not have common control over or significant influence upon the investee
and there is no quotation in the active market and the fair value cannot be reliably measured, the Company adopts the
cost method for calculation. The long term investment which has common control over or significant influence upon the
investee, the equity method is used for calculation. The long term equity investment which does not control or common
control over or significant influence upon the investee while the fair value can be reliably measured can be used as the
financial asset available for sale in calculation.
In addition, for a long term equity investment in which the Company can exercise control over the investee, the Company
adopts the cost method for accounting.
① Long term equity investment calculated based on the cost method
In accounting based on the cost method, the long term equity investment is priced based on the initial investment costs,
except the amount actually paid at the time when the investment is acquired, or the cash dividend or profit already
announced but not yet distributed involved in the consideration, the current return on investment is recognized based on
the amount of the cash dividend or profit announced for distribution by the investee enjoyable by the Company as
investor.
② Long term equity investment calculated based on the equity method
When the equity method is used for calculation, in case the initial investment cost of the long term equity investment is
greater than the fair value of the recognizable net asset of the investee enjoyable, the initial investment cost of the long
term equity investment shall not be adjusted.
If the equity method is used for calculation, the current investment gain/loss is the share of the net gain/loss realized in the
very year by the investee enjoyable or shareable. In confirming the share of the net gain and loss enjoyable in the
investee, the Group takes the fair value of various recognizable assets of the investee at the time of obtaining the
investment, and recognizes it after adjustment of the net profit of investee according to the accounting policy of the Group
and during the fiscal period. The part of the inside transaction gain and loss unrealized between the Group, the associates
and joint ventures attributable to the Group is calculated based on the shareholding proportion and is offset and the
investment gain and loss are recognized on this basis. However, the inside transaction loss unrealized incurred to the
Group and the investee shall not be offset if it belongs to the loss from impairment of the assets as assigned according to
the Enterprise Accounting Standards No. 8 – Impairment of Assets. For other comprehensive income of the investeess,
the book value of the long term equity investment is adjusted correspondingly and is recognized as other comprehensive
income and recorded in the capital reserve. In recognizing the net loss shareable incurred to the investee, the book value
of the long term equity investment and the other long term equity which substantially composes the net investment in the
investee is reduced to zero as the maximum. In addition, if the Group has the obligation for assuming extra loss incurred
to the investee, the predicted liability is recognized based on the predicted obligation to be assumed and is charged to the
current investment loss. In case of the net profit realized by the investee in the afterwards period, the Group shall restore
the recognition of the share of profit enjoyable after the amount enjoyable has made up for the unrecognized loss.
③ Acquisition of the minority equity
In preparation of the consolidated financial statements, the difference between the long term equity investment newly
increased by purchase of minority equity and the enjoyable share of a subsidiary’s net assets continuously calculated
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
commencing from the date of purchase (or date of consolidation) based on the newly increased shareholding proportion is
used to adjust the capital reserve; in case the capital reserve is not enough for writing-down, the retained earnings is
adjusted.
④ Disposal of long-term equity investment
In a consolidated financial statement, the parent company has partially disposed the long term equity investment in its
subsidiary without losing its control power, the difference between the disposal income of the amount enjoyable in the
subsidiary’s net assets corresponding to the long term equity investment disposed is counted to the owner’s equity. In
case that the parent company has partially disposed the long term equity investment in its subsidiary has caused the
parent company to have lost the control power over the subsidiary, it should be treated according to the accounting policy
as specified in the “method for preparation of consolidated financial statements”. If a long term equity investment is
disposed under other situation, for the equity disposed, the difference between its book value and the consideration
actually obtained is counted to the current gains and losses. For the long term equity investment calculated based on the
equity method, the other comprehensive income part which was originally counted to the owner’s equity is transferred to
te current gains and losses according to the corresponding proportion. The remaining equity is recognized as long term
equity investment or other relevant financial assets based on its book value and measured afterwards according to te
aforesaid accounting policy concerning long term equity investment or financial assets. In case the remaining equity is
calculated based the equity method instead of the cost method, retroactive adjustment is made according to the relevant
provisions.
(3) Basis for determining the joint control over and significant influence upon the investee
Control refers to the authority to decide the financial and operating policy of an enterprise according to which profit may be
achieved from the enterprise’s operating activities. Joint control refers to common control over some economic activities
according to the contract. Such control only exists when the investors unanimously approve the important finance in
connection with such economic activity and control power necessary to be shared in operation decision-making.
Significan influence is determined when the investor has the power in participating in decision making on the investee’s
financial and operation policies but cannot control or jointly control with other party such decision making. Significant
influence is determined when the investor has the power in participating in decision making on the investee’s financial and
operation policies but cannot control or jointly control with other party such decision making. In determining if to
implement control over or exert significant influence upon an investee, the potential voting elements, such as the current
convertible debentures in the investee held by the investor and other parties, the warranty available for implementation in
the current period, can be taken into consideration. (4) Method for impairment testing and provision of reserve for
impairment.
On every balance sheet day, the Group checks the long term equity investment and makes sure if there possibly exist any
sign of impairment. In case there exists impairment in such assets, their recoverable amount is estimated. In case the
recoverable amount of the asset is lower than its book value, provision for impairment of the asset is made based on its
difference and is recorded in the current gain and loss.
Loss from impairment of long term equity investment which once is confirmed shall not be reversed in the afterwards fiscal
periods.
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13. Investment based real estate
Investment based real estate refers to the real estate held by the Company which creates rental or added value of capital
or both, including housing and building already let out.
Investment based real estate is initially measured according to the cost Investment based real estate is initially measured
based on the cost. The follow-expenses in connection with the investment based real estate are recorded in the
investment based real estate costs in case the relevant economic benefit may flow into the Company while the costs can
be reliably measured. Other follow-up expenses are recorded in the current gain and loss at the time of incurrence.
The Group adopts the cost model to make follow-up measurement of the investment based real estate and makes
depreciation or amortization according to the policy of coincidence with housing and building or land use right.
About the impairment test method and method for provision of reserve for impairment of the investment based real estate,
refer to “Impairment of Non-current and Non-financial Assets”.
When the application of the investment based real estate is for self-use, the investment based real estate is transferred to
fixed asset or intangible asset commencing from the date of change. When the application of the self-use real estate is
changed into earning rental or increase of capital value, commencing from the date of change, the fixed asset or
intangible asset are transferred into investment based real estate. When conversion takes place, for the investment based
real estate measured by means of the cost module instead, the book value before conversion shall be taken as the entry
value after the conversion; for the investment based real estate measured by means of fair value instead, the fair value as
at the conversion date shall be taken as the entry value after conversion.
When the investment based real estate is disposed or permanently withdrawn from use and it is predicted that it is unable
to earn economic benefit, the recognition of the investment based real estate is terminated. The income from disposal of
investment based real estate, including sale, assignment, discarding or damage, is charged to the current gain and loss
after deduction of the book value and the relevant taxes.
14. Fixed assets
(1) Conditions for Recognition of Fixed Assets
Fixed assets refer to tangible assets used for producing commodities, providing labor services, leasing, operation or
management with service life exceeding one fiscal year.
(2) Recognition basis and pricing method for the fixed assets rented on financing basis
(3) Depreciation of Different Fixed Assets
Fixed assets are initially measured based on the costs with the influence from the predicted discarding expenses taken
into consideration. Commencing from the next month after a fixed asset has reached the predicted usable status, the
average service life method is used to provide depreciation within the service life. Service life, predicted net residual value
(the predicted net residual value refers to the amount obtained by the Group from disposal of the asset after deduction of
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the predicted disposal costs after the predicted service life of an assumed fixed asset expires and is in the predicted status
at the time of termination of the service life) and annual depreciation rate are as follows:
Depreciation Life
Categories Residual ratio (%) Annual depreciation rate (%)
(years)
Housing and buildings 20-35 5% 2.7-4.8
Machines & equipment 10 5%-10% 9-9.5
Electronic equipment 5年 5% 19
Motor vehicles 5年 5% 19
Other equipment 5年 5% 19
(4) Impairment test and provision for impairment of fixed assets
For the fixed assets, the Group makes judgment on whether there exists any sign of impairment on the balance sheet day.
If there exists the sign of impairment, the recoverable amount is estimated and impairment test is conducted. For goodwill
and intangible assets with the service life undetermined and intangible assets which has not year reached the usable
status, regardless of whether there exists any sign of impairment, impairment test should be conducted every year.
In case impairment test result shows that the recoverable amount of asset is lower than the book value, provision for
impairment is made based on the difference and is regarded in the loss for impairment. The recoverable amount is
determined based on the higher of the net amount of the fair value of the asset less the expense of disposal and the
present value of the predicted future cash flow of the asset. The fair value of assets is determined based on the sales
agreement price in fair transaction; in case there is no sales agreement but does exist active market of asset, the fair
value is determined according to the buyer’s offer of the asset; in case there exists neither sales agreement nor active
market of asset, the fair value of assets is estimated based on the best information obtainable. The disposal expenses
include legal expenses, relevant taxes, handling fee and direct expenses incurred before the asset reaches the sellable
status in connection with disposal of the assets. The present value the predicted future cash flow of assets: according to
the predicted future cash flow created in process of continuous application and final disposal, choose the proper discount
rate to determine the amount after discount. Provision for impairment of asset is calculated and recognized based on the
individual asset. In case it is difficult to make estimation of the recoverable amount of individual asset, the recoverable
amount of asset group is determined based on the asset group which the asset belongs to. The asset group is the
minimum grouping of assets which can independently produce cash flow in.
The loss from impairment of the aforesaid assets, once determined, shall be the part of recovery with the value
unreversable in future periods.
(5) Other Notes
The follow-up expenses in connection with fixed assets are recorded in the costs of fixed assets if the economic benefit in
connection with the fixed assets can highly probably flow into while the costs can be reliably measured and the book value
of the part replaced is terminated for recognition. Besides, other follow-up expenses are recorded in the current gain and
loss at the time of incurrence.
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Income from disposal of fixed assets, including sales, assignment, scrapping, or impairment, is counted to the current gain
and loss after deduction of its book value and relevant taxes.
The Group rechecks the service life, predicted net residual value and depreciation method of fixed assets at least once at
the end of a year; in case any change takes place, it is taken as change in accounting estimation.
15. Construction in process
(1) Classification of construction in process
The cost of construction-in-process is determined based on the actual expenditures of the project, including various
engineering expenses incurred during the construction period and other relevant expenses, etc. The construction in
progress is transferred into the fixed assets after the works has reached the predicted usable status.
(2) Standard and Time of Conversion of Construction-in-progress into Fixed Asset
The cost of construction-in-process is determined based on the actual expenditures of the project, including various
engineering expenses incurred during the construction period and other relevant expenses, etc. The construction in
progress is transferred into the fixed assets after the works has reached the predicted usable status.
(3) Impairment Test Method for Construction-in-Progress and Provision for Impairment
The Group makes judgment on whether there exists any impairment sign on the balance sheet day. If there exists the sign
of impairment, the recoverable amount is estimated and impairment test is conducted.
In case impairment test result shows that the recoverable amount of asset is lower than the book value, provision for
impairment is made based on the difference and is regarded in the loss for impairment. The recoverable amount is
determined based on the higher of the net amount of the fair value of the asset less the expense of disposal and the
present value of the predicted future cash flow of the asset. The fair value of assets is determined based on the sales
agreement price in fair transaction; in case there is no sales agreement but does exist active market of asset, the fair
value is determined according to the buyer’s offer of the asset; in case there exists neither sales agreement nor active
market of asset, the fair value of assets is estimated based on the best information obtainable. The disposal expenses
include legal expenses, relevant taxes, handling fee and direct expenses incurred before the asset reaches the sellable
status in connection with disposal of the assets. The present value the predicted future cash flow of assets: according to
the predicted future cash flow created in process of continuous application and final disposal, choose the proper discount
rate to determine the amount after discount. Provision for impairment of asset is calculated and recognized based on the
individual asset. In case it is difficult to make estimation of the recoverable amount of individual asset, the recoverable
amount of asset group is determined based on the asset group which the asset belongs to. The asset group is the
minimum grouping of assets which can independently produce cash flow in.
The loss from impairment of the aforesaid assets, once determined, shall be the part of recovery with the value
unreversable in future periods.
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16. Loan expenses
(1) Capitalization of borrowing costs
Loan expenses include the interest and additional expenses incurred by loans, and the exchange difference incurred by
foreign exchange loan. The loan expenses for purchase, construction or production of the assets directly attributable to
those in compliance with capitalization conditions start to be capitalized when the asset expenditure has already incurred,
loan expenses have incurred and purchase, construction or production activities necessary for enabling the assets to
reach the predicted usable or sellable status have already started. When the assets purchased/constructed or produced in
compliance with capitalization conditions reach the predicted usable or sellable status, the capitalization of the loan
expenses shall stop. The other loan expenses are recognized as expenses in the very period of incurrence.
(2) Duration of loan expense capitalization
(3) Capitalization suspension period
(4) Calculation of the amount of loan expense capitalized
17. Biological assets
Inapplicable
18. Oil and gas assets
Inapplicable
19. Intangible Assets
(1) Pricing of intangible assets
An intangible asset refers to a recognizable non-monetary asset without physical form possessed by or under the control
of the Group.
Intangible assets are initially measured based on the cost. All expenses in connection with the intangible assets are
charged to the costs of intangible assets if the relevant economic benefit can flow into the Group and the costs can be
reliably measured. All the expenses of other items except that are charged to the current gain and loss at the time of
incurrence.
The land use right acquired is usually calculated as intangible asset. For the buildings, such as factory building,
constructed independently, the expenses in connection with the land use right and the construction cost of such building
are calculated as intangible asset and fixed assets. For purchased housing and buildings, the relevant costs are
distributed between the land use right and buildings; in case it is difficult to distribution rationally, they shall all be handled
as fixed assets.
An intangible asset with limited service life is amortized in average by using the straight-line method over the predicted
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service life with its original value less the predicted residual value and the accumulated amount of the reserve for
impairment already provided commencing from the time of availability for use. The intangible asset with unidentified
service life would not be amortized.
At the end of a year, the Group rechecks the service life of the intangible asset and the amortization method. The change
incurred is treated as change of accounting estimation. In addition, the service life of intangible asset with indefinite
service life is rechecked. If there is evidence showing that the duration of the economic benefit brought about by the
intangible asset for the enterprise is foreseeable, the estimated service life is amortized according to the amortization
policy of intangible assets with limited service life.
Expenses at the research stage is counted to the current gains and losses at the time of incurrence.
The expenses at the development stage which can satisfy the following conditions at the same time are recognized as
intangible asset and that which cannot satisfy the following conditions are recorded in the current gain and loss at the
development stage:
① It is technically feasible to finish such intangible assets so as to make it useable or sellable;
② Having the intention to finish, use or sell such intangible assets;
③ The ways of intangible assets to produce economic benefit, including being able to prove that there exists market for
the products produced by using such intangible assets or there exists market for intangible asset itself; in case intangible
asset shall be used internally, it can be proved useful.
④ There is sufficient support in terms of technology, financial resource and other resources so as to fulfil the development
of intangible asset and have the ability to use or sell such intangible assets;
⑤ The expenses attributable to the development stage of such intangible assets can be reliably measured.
In case it is impossible to distinguish the expenses at the research stage from that at the development stage, the R & D
expenses incurred shall all be recorded in the current gain and loss.
(2) Estimate of service life of the intangible asset with limited service life
An intangible asset with limited service life is amortized in average by using the straight-line method over the predicted
service life with its original value less the predicted residual value and the accumulated amount of the reserve for
impairment already provided commencing from the time of availability for use. The intangible asset with unidentified
service life would not be amortized.
At the end of a year, the Group rechecks the service life of the intangible asset and the amortization method. The change
incurred is treated as change of accounting estimation. In addition, the service life of intangible asset with indefinite
service life is rechecked. If there is evidence showing that the duration of the economic benefit brought about by the
intangible asset for the enterprise is foreseeable, the estimated service life is amortized according to the amortization
policy of intangible assets with limited service life.
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(3) Basis for judgment of intangible assets with indefinite service life
(4) Provision for impairment of intangible assets
The Group makes judgment on whether there exists any impairment sign on the balance sheet day. If there exists the sign
of impairment, the recoverable amount is estimated and impairment test is conducted.
In case impairment test result shows that the recoverable amount of asset is lower than the book value, provision for
impairment is made based on the difference and is regarded in the loss for impairment. The recoverable amount is
determined based on the higher of the net amount of the fair value of the asset less the expense of disposal and the
present value of the predicted future cash flow of the asset. The fair value of assets is determined based on the sales
agreement price in fair transaction; in case there is no sales agreement but does exist active market of asset, the fair
value is determined according to the buyer’s offer of the asset; in case there exists neither sales agreement nor active
market of asset, the fair value of assets is estimated based on the best information obtainable. The disposal expenses
include legal expenses, relevant taxes, handling fee and direct expenses incurred before the asset reaches the sellable
status in connection with disposal of the assets. The present value the predicted future cash flow of assets: according to
the predicted future cash flow created in process of continuous application and final disposal, choose the proper discount
rate to determine the amount after discount. Provision for impairment of asset is calculated and recognized based on the
individual asset. In case it is difficult to make estimation of the recoverable amount of individual asset, the recoverable
amount of asset group is determined based on the asset group which the asset belongs to. The asset group is the
minimum grouping of assets which can independently produce cash flow in.
The loss from impairment of the aforesaid assets, once determined, shall be the part of recovery with the value
unreversable in future periods.
(5) Specific criteria for division between the research stage and development stage of the
Company’s internal R & D projects
The expenditures for the Company’s internal research and development projects are divided into expenditure of research
stage and that of development stage.
(6) Accounting of expenditure for internal R & D projects
Expenses at the research stage is counted to the current gains and losses at the time of incurrence.
The expenses at the development stage which can satisfy the following conditions at the same time are recognized as
intangible asset and that which cannot satisfy the following conditions are recorded in the current gain and loss at the
development stage:
① It is technically feasible to finish such intangible assets so as to make it useable or sellable;
② Having the intention to finish, use or sell such intangible assets;
③ The ways of intangible assets to produce economic benefit, including being able to prove that there exists market for
the products produced by using such intangible assets or there exists market for intangible asset itself; in case intangible
asset shall be used internally, it can be proved useful.
④ There is sufficient support in terms of technology, financial resource and other resources so as to fulfil the development
of intangible asset and have the ability to use or sell such intangible assets;
82
FIYTA Holdings Ltd. 2013 Semi-Annual Report
⑤ The expenses attributable to the development stage of such intangible assets can be reliably measured.
In case it is impossible to distinguish the expenses at the research stage from that at the development stage, the R & D
expenses incurred shall all be recorded in the current gain and loss.
20. Long-term expenses to be proportioned
Long-term expenses to be apportioned are various expenses already incurred but to be borne in the reporting period and
future periods with apportioning term of over one year. Long-term expenses to be apportioned are amortized based on the
straight-line method over the predicted beneficial period and the amortization term is usually 2 – 5 years.
21. Assignment of the assets with buy-back conditions
Inapplicable
22. Predicted liabilities
(1) Criteria for recognizing the predicted liabilities
Predicted liabilities shall be recognized when the obligation in connection with the contingent events complies with the
following conditions: (1) such an obligation is a current one the Company should assume; (2) implementation of such
obligation may possibly cause flow-out of economic benefit ; (3) The amount involved in such obligation can be reliably
measured.
(2) Measurement of Predicted Liabilities
On the balance sheet day, with consideration of the risks in connection with the contingent matters, uncertainty, time value
of currency, etc., the predicted liabilities are measured according to the best estimated amount payable in implementation
of the present obligations.
In case the predicted liabilities payable should completely or partially be compensated by a third party or other party, while
the amount of compensation can be basically confirmed receivable, it should be individually recognized as assets.
However, the amount of compensation as recognized should not exceed the par value of the liabilities as recognized.
23. Share payment and equity instrument
Inapplicable
24. Repurchasing the Company’s shares
Inapplicable
25. Revenues
(1) Specific judgment criteria for the time of recognizing the revenue from sales of goods
Sales income is recognized when the major risk and remuneration involved in the ownership of goods have been
83
FIYTA Holdings Ltd. 2013 Semi-Annual Report
transferred to the buyer, with neither the successive management power general in connection with the ownership
retained nor effective control over the goods already solve; the income amount may be reliably measured, the relevant
economic benefit may flow into the enterprise; the relevant costs incurred or to incur can be reliably measured.
(2) Basis for recognition of Income from use right of the assigned asset
(1) Royalty Income
The income is recognized based on accrual basis according to the relevant contract or agreement.
(2) Interest income
Interest income is determined according to the time the borrowers using the Group’s monetary fund and the actual interest
rate.
(3) Income from properties
The amount of income from lease of properties is determined on the lease date as specified in the lease contract or
agreement (rental-free period should be taken into consideration if there is rental-free period) and the amount of rental
and the income from the properties leased is recognized when the concerned rental or the evidence of receipt has been
received.
(3) Basis for recognition of labor service income
The results of labor service transactions offered on the balance sheet date can be reliably estimated, the labor service
income is recognized based on the percentage of the work completed. The completion progress of labor service
transaction is determined based on the proportion of the labor service already provided in the total labor service volume.
Reliable measurement of the result of the labor service transaction provided refers to that it can satisfy at the same time:
① the amount of the income can be reliably measured; ② the concerned economic benefit may highly possibly flow into
the Company; ③ the completion of the transaction can be reliably determined; ④ the costs incurred or to incur can be
reliably measured.
In case the result of a labor service transaction cannot be reliably measured, the labor service income is recognized
based on the labor cost which has incurred and is predicted to be compensable and the labor service cost already
incurred is taken as the current expenses. The labor cost already incurred shall not be recognized as income if it is
predicted to be impossible to be compensated.
(4) Basis and method for determining the contract completion progress when the income from
labor services and income from construction contract based on percentage-of-completion
method
Inapplicable
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
26. Governmental subsidy
(1) Types
Government subsidy refers to monetary asset or non-monetary asst obtained from the government free of charge but
does not include the capital invested by the government as the Company’s owner. The government subsidy can be
divided into the government subsidy in connection with asset and government subsidy in connection with income.
(2) Accounting Process
The governmental subsidy is measured based on the amount received or receivable if it is monetary asset. The
government subsidy is measured based on the fair value if it is a non-monetary asset; when the fair value cannot be
obtained, it is measured based on the nominated amount. The government subsidy measured based on the nominal
amount is directly recorded in the current gain and loss.
Asset related governmental subsidy is recognized as deferred income, is distributed in average over the service life of the
related assets and recorded in the current gain and loss. The government subsidy in connection with income is
recognized as deferred income if it is used for compensating the Company’s relevant expenses or losses in the afterward
term and is charged to the current gain and loss during the recognition of the relevant expenses; or directly charged to the
current gain and loss if it is used for compensating the relevant expenses or losses already incurred in the Company.
When the recognized government subsidy needs to be returned, if there exists the relevant deferred income balance, the
book balance of the deferred income should be written-down and the excessive part is recorded in the current gain and
loss; if there exists no relevant deferred gain and loss, it is directly recorded in the current gain and loss.
27. Deferred income tax asset and deferred income tax liability
(1) Basis for recognition of deferred income tax assets
For the offsetable provisional difference in connection with the initial recognition of the asset or liability arising from the
transaction which is neither enterprise consolidation nor may influence the accounting profit and taxable income amount
(or can be used to offset loss), the pertinent deferred income tax asset shall not be recognized. In addition, for the
offsetable provisional difference in connection with investment in subsidiary, associate and joint venture, if the provisional
difference may not possibly be reservable in the foreseeable future or cannot be possibly obtained and used for offsetting
the taxable income amount of the provisional difference in future, the pertinent deferred income tax asset shall not be
recognized. Except the aforesaid exceptional case, the Group recognizes the deferred income tax asset arising from the
other offsetable provisional difference within the limit of the taxable income amount which can be used to offset the
offsetable provisional difference.
For the offsetable loss and tax credit in the years after carry-forward, the pertinent deferred income tax asset is recognized
within the limit of the future taxable income amount whch may possibly be used for offsetting the offsetable loss and tax
credit.
On the balance sheet day, the deferred income tax asset and deferred income tax liability are measured based on the
applicable tax rate during the period of predicted recovery of such asset or discharge of the liabilities according to the tax
85
FIYTA Holdings Ltd. 2013 Semi-Annual Report
law.
On the balance sheet day, the book value of the deferred income tax asset is rechecked. In case it is highly impossible to
get enough taxable income amount to offset the interest of the deferred income tax asset in the future period, the book
value of the deferred income tax assets is deduced. When it is highly possible to get enough taxable income amount, the
deducted amount is reversed.
(2) Basis for recognition of deferred income tax liabilities
For the provisional difference of payable taxes in connection with the initial recognition of goodwill and in connection with
the initial recognition of assets or liabilities arising from the transactions which are neither enterprise consolidation and nor
influence the accounting profit and taxable income amount (or can be used to offset loss) at the time of incurrence, the
pertinent deferred income tax liability shall not be recognized. In addition, for the taxable provisional difference in
connection with investment in subsidiaries, associates and joint ventures, if the Group can control the time of provisional
difference reversal while such provisional difference may not be possibly reversed in the foreseeable future, the pertinent
deferred income tax liability shall not be recognized either. Except the aforesaid exceptional case, the Group recognizes
the deferred income tax liability arising from the provisional difference of all other payable taxes.
28. Operating Lease and Financing Lease
(1) Accounting process for operating lease
Financing lease is actually the lease in which all the risks and remuneration in connection with the ownership of the asset
has been transferred and whose ownership may be either eventually transferred or possibly not transferred. Operating
lease refers to the leases other than financing lease. The Group’s leases refer to the operational lease.
(1) The Group records the operational lease business as the tenant
Rental payment of operational lease is recorded in the relevant asset cost or current gain and loss based on the straight
line method over various fiscal periods within the lease term. The initial direct expense is recorded in the current gain and
loss. Contingent rental is recorded in the current gain and loss when it actually incurs.
(2) The Group records the operational lease business as the lessor
The rental income of the operational lease is recorded in the current gain and loss according to the straight line method in
different periods within the lease term. The initial direct expense with bigger amount is capitalized at the time of incurrence
and is recorded in the current gain and loss periodically according to the same base in recognizing the rental income
during the lease term; other initial direct expense with smaller amount is recorded in the current gain and loss at the time
of incurrence. Contingent rental is recorded in the current gain and loss when it actually incurs.
(2) Accounting process for financing lease
(3) Accounting process for sale and leaseback
29. Assets for sale held by the Company
Inapplicable
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
30. Asset securitization business
Inapplicable
31. Hedging Accounting
Inapplicable
32. Change in the Accounting Policy and Accounting Estimates
Inapplicable
33. Correction of previous accounting errors
Inapplicable
34. Other Principal Accounting Policies, Accounting Estimates and Preparation of the
Consolidated Financial Statements
Major Accounting Judgment and Estimation
In process of applying the accounting policy, due to the inherent uncertainty of the operating activities, the Group needs to
make judgment, estimation and assumption of the book value of the items in the statements which cannot be accurately
measured. These judgment, estimation and assumption are made based on the past experiene of the Group’s
management with consideration of other correlative factors. These judgment, estimation and assumption may influence
the reported amount of income, expenses, assets and liabilities and disclosure of the contingent liabilities on the balance
sheet day. However, the result which causes uncertainty of these estimates may possibly result in significant adjustment
which may influence the book amount of the assets or liabilities in future.
The Group makes regular recheck of the aforesaid judgment, estimation and assumption on the basis of continuous
operation. In case the change of the accounting estate only influences the very period of change, the amount influenced is
recognized in the very period of change; in case the change of the accounting estimate not only influences the very period
of change but also the future period, the amount influenced is recognized in the very period of change and the future
period.
The important fields in which the Group needs to make judgment, estimation and assumption on the amount of the items
of the financial statements as at the balance sheet day are as follows:
(1) Provision for bad debts
The Group checks the loss from bad debts by using the allowance method according to the accounting policy for accounts
receivable. Impairment of the accounts receivable is based on assessment of the recoverability of accounts receivable.
Identification of the impairment of the accounts receivable requires the management’s judgment and estimation. The
discrepancy between the actual result and the previous estimation shall affect the book value of the accounts receivable
or provision or reversal of the reserve for bad debt of accounts receivable at the time of estimated change.
(2) Provision for price falling of famous brand watches
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
As to famous brand watches for distribution with stock age of over three years, in the management’s opinion, as their
prices tends to rise, they enjoy good sales prospect. The management makes overall recheck of the saleability and the
net realizable value of such famous brand watches. In the management’s opinion, even though the stock age of such
watches increases, their value can be entirely recoverable. In case there is sign showing that the net realizable value of
such famous brand watches is lower than their book value, the Group shall make adjustment during the period when such
sign takes place. Since impairment of such famous brand watches requires the management to obtain concrete evidence,
judgment and estimation shall be made based on taking into consideration such elements as the purpose for holding the
famous brand watches, influence of the events after the balance sheet day, etc. The discrepancy between the actual
result and the originally estimated shall influence the provision or reversal of the value of inventories and reserve for price
falling of inventories during the changed period.
In the opinion of the Group’s management, the provision for price falling of the aforesaid famous brand watches and the
recheck method are proper.
(3) Reserve for impairment of the non-financial non-current assets
On the balance sheet day, the Group judges whether there may possibly exist any sign of possible impairment of the
non-current assets other than financial assets. For the intangible assets with uncertain service life, except the impairment
test conducted each year, when there exists any sign of impairment, impairment test is also conducted. For the
non-current assets other than financial assets, when there exists sign showing that its book amount is unrecoverable,
impairment test is conducted.
When the book value of assets or asset group is higher than the recoverable amount, i.e. the higher of the net amount of
the fair value less the disposal expenses and the present value of the predicted future cash flow, it shows that impairment
has incurred.
The net amount of the fair value less the disposal expenses is determined with reference to the sales agreement price of
the similar assets in fair transaction or the observable market price less the incremental cost directly attributable to
disposal of the assets.
In prediction of the present value of future cash flow, it is necessary to make significant judgment on the output, sales
price, the relevant operation costs of the asset (or asset group) and the used discount rate in calculating the present value,
etc. The Group may use the accessible relevant information in estimating the recoverable amount, including the prediction
of the relevant output, sales price and relevant operation costs according to the reasonable and supportable assumption.
The Group tests the goodwill to determine whether impairment takes place at least every year. This demands prediction of
the present value of the future cash flow of the assets or combination of asset groups with the goodwill distributed. When
prediction is made on the present value of the future cash flow, the Group needs to predict the cash flow produced by the
future asset groups or combination of the asset groups; meanwhile propoer discount rate is chosen to determine the
present value of future cash flow.
(4) Depreciation and Amortization
The Group provides depreciation and makes amortization of the investment based real estate, fixed assets and intangible
assets based on the straight line method within the service life with their residual value taken into consideration. The
Group rechecks the service life regularly to determine the amount to be recorded in the depreciation and amortization
88
FIYTA Holdings Ltd. 2013 Semi-Annual Report
expenses of each report period. The service life is determined by the Group according to the past experience on the
similar assets with combination of the updating of the predicted technology. If great change has taken place in the
previous estimation, the depreciation and amortization expenses are adjusted during the future period.
(5) Asset of deferred income tax
Within the limit that there is possibility to have enough taxable profit to offset the loss, it is necessary for the Group to
recognize all the unused taxation loss as deferred income tax asset. This demands the Group’s management to use a lot
of judgment to estimate the time when the future taxable profit may take place and the amount and decide the amount of
the deferred income tax asset necessary to be determined with combination of taxation planning strategy.
(6) Income tax
In normal operating activities, there exists a certain uncertainty in final tax treatment and calculation in partial transactions
in the Group; whether partial items are necessary to be approved by the tax collection authority for payment before tax. If
there exists discrepancy between the final certification result of these tax affairs and the initially estimated amount, such
discrepancy shall produce influence upon the income tax and deferred income tax of the very period during the final
certification.
(8) After-sale Warranty
The Group is liable for the quality warranty for the commodities sold out and responsible for compensation for the quality
damage arising from the quality defect of the goods, including repairing, replacement, etc. The Group makes estimation of
and provides corresponding reserve for the after-sale quality repairing commitments offered to the customers for the sold
and repairing of the sold commodities. Such contingent matters have formed a present obligation while implementation of
such present obligation may possibly cause the economic benefit to flow out of the Group; the Group recognizes the best
estimate necessary to be paid in implementing the present obligations for the contingent matters. On the contrary, when
such matter has not yet formed a present obligation, the Group does not need to make prediction. In process of making
judgment, the Group needs to consider the data of the Group’s recent repairing experience. However, the recent repairing
experience may not possibly reflect the futre repairing conditions. Any increase or decrease of the reserve may all
possibly influence the gain and loss of future years.
V. Taxes
1. Main taxes and tax rates applicable to the Company
Taxes Basis for taxation Tax rate
The Company and its domestic
subsidiaries are general VAT
Value-added tax payers and the taxable VAT is the 17%
balance of the current output VAT
less the offsetable input VAT.
For the imported or self-made
high-grade watches, the Company
Consumption tax 20%
and its domestic subsidiaries pay
consumption tax based on 20% of
89
FIYTA Holdings Ltd. 2013 Semi-Annual Report
the taxation base.
The Company and its subsidiaries
pay business tax for the housing
rental income, income from offering
Business tax 5%
labor service and the income from
use of the assigned assets at rate
of 5%
Urban maintenance and construction tax 7% of the turnover tax actually paid 7%
Enterprise income tax Total profit 15%-30%
Educational surtax and local educational
3% of the turnover tax actually paid 3%
surcharges
For the housing leased by a
production and operation unit, the
property tax is calculated based on
70% of the cost of the property with
the tax rate of 1.2%. The Group
pays the property tax for its
Property tax 1.2%
property located in Shenzhen
based on the tax rate as specified
in the said notice; and pays the
property tax for its properties
located in other cities according to
the local regulations.
Income tax rate implemented by the branches.
Urban maintenance and construction tax, educational surcharges and local educational surcharges
The Company and its subsidiaries located in PRC Mainland pay the urban maintenance and construction tax at the rate of
7% of the turnover tax actually paid.
Educational surtax and local educational surcharges
The Company and its subsidiaries located in PRC Mainland pay the educational surtax at the rate of 3% of the turnover
tax.
In accordance with the Circular of the General Office of Shenzhen Municipal People’s Government on Printing and Issuing
the Provisional Measures for Collection Management of the Local Educational Surtax of Shenzhen, SHEN FU BAN [2011]
No. 60, commencing from January 1, 2011, the local educational surtax is paid at 2% of the turnover tax actually paid.
Property tax
According to the provisions of Article 5 of the Questions & Answers to a Number of Policies for Property Tax and Vehicle &
Vessel Tax: a production and operation unit that leases property shall pay property tax calculated based on 70% of the
cost of the property at the rate of 1.2%.
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
The Group pays the property tax for its property located in Shenzhen based on the tax rate as specified in the said notice;
and pays the property tax for its properties located in other cities according to the local regulations.
Enterprise income tax
The Company and its Income tax rate of the current Income tax rate of the previous
Subsidiaries year year
The Company (Note①)(Note②)(Note 25% 24%
③)
HARMONY (Note①)(Note②) 25% 24%
Shenzhen FIYTA Sophisticated 15% 15%
Timepieces Manufacture Co.,
Ltd.(Note③)(Note④)
Shenzhen World Watches Center Co., 25% 24%
Ltd.(Note①)
FIYTA Hong Kong Limited (Note⑤) 16.5% 16.5%
68-Station Limited (Note⑤) 16.5% 16.5%
LIANGYA(Note⑤) 16.5% 16.5%
BAODING(Note⑤) 16.5% 16.5%
World Watches International(Note⑤) 16.5% 16.5%
Shenzhen FIYTA Science & 25% 25%
Technology Co., Ltd. (Note(⑥)
Shenzhen Symphony Trading Co., 25% 25%
Ltd.(Note⑥)
Beijing Henglianda Timepieces Co., 25% 25%
Ltd. (Note⑥)
Kunming Lishan Department Store 25% 25%
Co., Ltd. (Note⑥)
Harbin World Watches Distribution 25% 25%
Co., Ltd. (Note⑥)
Shenzhen Harmony Culture 25% 25%
Communication Co., Ltd. (Note⑥)
Emile Chouriet (Shenzhen) Co., Ltd. 25% 25%
(Note⑥)
FIYTA Sales Co., Ltd.(Note⑥) 25% 25%
Liaoning Hengdarui Commercial & 25% 25%
Trade Co., Ltd.(Note⑥)
The Swiss Company (Note⑦) 30% 30%
Note:
Branch companies and branch factories that pay their income tax independently should specify the income tax rate
implemented by them.
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
2. Preferential Tax Policies and Approval Documents
Note①:
In accordance with the Circular of the State Council on Implementation of the Transitional Preferential Policy of Enterprise
Income Tax GUO FA (2007) No. 39 promulgated by the State Administration of Taxation, commencing from January 1,
2008, the enterprises previously enjoying the preferential policy of low enterprise income tax rate shall gradually transit to
the statutory tax rate within five years after implementation of the new tax law. On this basis, the companies whose
registration place is Shenzhen implemented tax rate of 25% in 2012;
Note②: In accordance with the Provisional Measures for Administration of Collection of Aggregate Revenue of Income
Tax of Cross-Regional Enterprises, the head office of the Company and its subsidiaries, the head office of HARMONY and
its subsidiaries started implementation of the method of aggregate revenue of enterprise income tax featuring “unified
calculation, level-to-level administration, insitu prepayment, aggregative clearing, and financial transfer”. The Company
and HARMONY’s subsidiaries prepay their enterprise income tax based on 50% of the payable income tax locally and the
Company’s head office and HARMONY’s head office make final settlement for another 50% with Shenzhen Municipal
Office of SAT;
Note③: In accordance with the Circular of the State Administration of Taxation on Issuing the Measures on Administration
of Pre-tax Deduction of the Enterprise Research and Development Budget (Trial) GUO SHUI FA [2008] No. 116, the
Company’s and the Manufacture Company’s research and development budget for developing new technology, new
products and new process may enjoy 50% additional deduction as research and development budget in addition to
deduction based on actual incurrence according to the provisions concerned if such budget has not formed intangible
asset which should be charged to the current gain and loss.
Note④: In accordance with the Circular of Nanshan District Local Taxation Bureau, Shenzhen on Tax Affairs SHEN DI
SHUI NAN BEI ZI [2012] No. 786, the company submitted application for “Advanced and new technology enterprises in
areas where special regional policies of the State Council are implemented may be entitled to enterprise income tax
incentives” and Nanshan District Local Taxation Bureau, Shenzhen completed filing and registration on April 10, 2012;
Note⑤: Such companies are registered in Hong Kong and apply the profit tax in Hong Kong with applicable tax rate of
16.50%;
Note⑥: In accordance with the Enterprise Income Law of the People’s Republic of China, the resident enterprise income
tax rate as at January 1, 2008 was 25%;
Note⑦: The registration place of the Swiss Company is Switzerland, and the applicable tax rate of the registration place
applies. The applicable rate in the current year is 30%.
3. Other Notes
Inapplicable
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
VI. Enterprise Consolidation and Consolidated Financial Statements
1. About subsidiaries
(1) Subsidiaries acquired by means of establishment or investment
In CNY
Bala
nce of
the
owner’s
equity of
the
parent
company
Amount offsetting
Balance
in the the loss
of other
minority shared
items
Actual sharehol by
which
investme Proportio Are the ders’ minority
Full substanti Sharehol Minority
Place of Register nt at the n of statemen equity sharehol
Names of Subsidiar Business Business ally ding sharehol
Registrati ed end of voting ts used for ders in
Subsidiar y type type Scope compose proportio ders’
on Capital the power consolida offsetting the
ies s net n (%) equity
reporting (%) ted (Y/N) minority reporting
investme
period sharehol period
nt in the
ders’ exceedin
subsidiar
gain and g the
y
loss share
enjoyed
in the
owner’s
equity at
year
beginnin
g
Purchase
and
sales of
Controlle
HARMO Shenzhe Commer 600,000, watches 601,307,
d by 100% 100% Yes
NY(注①) n ce 000.00 and 200.00
stock
spares
and
parts,
93
FIYTA Holdings Ltd. 2013 Semi-Annual Report
repairing
service
Producin
g various
watches
and
moveme
nts,
Controlle spares
Manufact Shenzhe Manufact 10,000,0 10,000,0
d by and 100% 100% Yes
ure Co. n ure 00.00 00.00
stock parts,
sophistic
ated
watches
and
repair
service
FIYTA Trade
Controlle
Hong Hong Commer 55,367,5 and 55,367,5
d by 100% 100% Yes
Kong Kong ce 20.00 investme 20.00
stock
Limited nt
Sales of
Controlle
68-Statio Hong Commer 6,846,54 watches, 4,107,92 1,108,18
d by 60% 60% Yes
n Limited Kong ce 0.00 domestic 4.00 0.87
stock
trade
Purchase
and
sales of
Controlle
Harbin Commer 500,000. watches 500,000.
d by Harbin 100% 100% Yes
Co. ce 00 and 00
stock
parts;
watches
repairing.
sales of
watches
Controlle and
HENGLI Commer 30,000,0 31,300,0
d by Beijing compone 100% 100% Yes
ANDA ce 00.00 00.00
stock nts,
repairing
services
FIYTA Controlle Shenzhe Manufact 10,000,0 R & D, 10,000,0
100% 100% Yes
Technolo d by n ure 00.00 productio 00.00
94
FIYTA Holdings Ltd. 2013 Semi-Annual Report
gy stock n and
sales of
watches,
productio
n,
machinin
g, sales
and
technolo
gy
develop
ment of
sophistic
ated
parts.
Sales of
clocks
and
watches
and gifts
and
Controlle
Trade Shenzhe Commer 5,000,00 consultati 5,000,00
d by 100% 100% Yes
Co. n ce 0.00 on of 0.00
stock
relevant
informati
on and
other
domestic
trading
Cultural
activity
planning,
Controlle
Cultural Shenzhe Commer 500,000. devoting 500,000.
d by 100% 100% Yes
Co. n ce 00 to 00
stock
advertise
ment
business
Wholesal
Emile e, import
Controlle
Chouriet Shenzhe Commer 4,376,00 and 4,376,00
d by 100% 100% 是
(Shenzh n ce 0.00 export of 0.00
stock
en) watches,
watch
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
spares
and
parts,
jewelry,
ornament
s and the
supplem
entary
business;
after-sale
repairing
service
of
watches
World Retail
Controlle
Watches Hong Commer 8,377,00 and 8,377,00
d by 100% 100% Yes
Internatio Kong ce 0.00 repairing 0.00
stock
nal services
design, R
& D and
sales of
various
watches,
timing
instrume
nts and
Controlle
FIYTA Shenzhe Commer 50,000,0 spares 50,000,0
d by 100% 100% Yes
Sales n ce 00.00 and 00.00
stock
accessor
y parts,
sales of
jewelry
and
ornament
s; import
& export
design, R
& D and
Controlle sales of
FIYTA Shenzhe Commer 50,000,0 50,000,0
d by various 100% 100% Yes
Sales n ce 00.00 00.00
stock watches,
timing
instrume
96
FIYTA Holdings Ltd. 2013 Semi-Annual Report
nts and
spares
and
accessor
y parts,
sales of
jewelry
and
ornament
s; import
& export
Other notes to the subsidiaries acquired by means of establishment or investment, etc.
(2) Subsidiaries under the Common Control Acquired through Enterprise Consolidation
In CNY
Balance
of the
owner’s
equity of
the
parent
company
Amount
Balance offsetting
in the
of other the loss
minority
items shared
sharehol
which by
Proportio Are the ders’
Full Actual substanti Sharehol Minority minority
Place of Register n of statemen equity
Name of Subsidiar Business Business investme ally ding sharehol sharehol
Registrati ed voting ts used for
Subsidiar y type type Scope nt at year compose proportio ders’ ders in
on Capital power consolida offsetting
ies end s net n (%) equity the
(%) ted (Y/N) minority
investme reporting
sharehol
nt in the period
ders’
subsidiar exceedin
gain and
y g the
loss
share
enjoyed
in the
owner’s
equity at
year
beginnin
97
FIYTA Holdings Ltd. 2013 Semi-Annual Report
g
Wholesal
e, retail
and
repairing
of
watches
and
accessor
y parts,
Liaoning
electroni
Hengdar
c
ui Equity-co
Shenyan Commer 51,000,0 products, 56,001,0
Commer ntrolled 100% 100% Yes
g ce 00.00 communi 00.00
cial &
cation
Trade
equipme
Co., Ltd.
nt and
materials
, general
merchan
dise,
property
manage
ment and
lease
Other notes to the subsidiaries acquired by means of consolidation of enterprises under the common control, etc.
(3) Subsidiaries acquired through consolidation of the enterprises not under the same control
In CNY
Balanc Amount Balanc
e of in e of the
other minority owner’s
Amount
Full items Proporti Consoli shareh equity
actually Shareh
Names Place of Registe actually on of dated olders’ of the
Subsidi Busines Busines investe olding Minority
of Registr red made voting stateme equity parent
ary type s type s Scope d at proporti equity
Subsidi ation capital up to power nt ? used to compan
year on (%)
aries net (%) Yes/No write-do y
end
investm wn offsettin
ent to minority g the
the shareh loss
98
FIYTA Holdings Ltd. 2013 Semi-Annual Report
subsidi olders’ shared
aries gain by
and minority
loss shareh
olders
in the
reportin
g period
exceedi
ng the
share
enjoyed
in the
owner’s
equity
at year
beginni
ng
Domest
Kunmin
ic
g
trading
Lishan
Controll and
Depart Kunmin Comme 5,000,0 1,200,0
ed by material 100% 100% Yes
ment g rce 00.00 00.00
stock s
Store
supply
Co.,
and
Ltd.
sale
Product
ion,
manufa
cture
The
Controll and
Swiss Switzerl Comme 1,000,0 15,379,
ed by sales of 100% 100% Yes
Compa and rce 00.00 800.00
stock Emile
ny
Chourie
t
watche
s
Other notes to the subsidiaries acquired by means of consolidation of enterprises not under the common control, etc.
2. Operating entities with the control power formed by special purpose entity or through
entrusted operation or tenancy
In CNY
99
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Major business dealings Ending balance of the major assets and liabilities
Description
with the Company recognized in the consolidated statements
Purchase of fashion brand
LIANGYA 959,664.55
watches (current assets)
Purchase of fashion brand
LIANGYA 810,412.52
watches (current liabilities)
Purchase of fashion brand
LIANGYA 149,252.03
watches (net assets)
Purchase of fashion brand
BAODING 55,441.15
watches (current assets)
Purchase of fashion brand
BAODING
watches (current liabilities)
Purchase of fashion brand
BAODING 55,441.15
watches (net assets)
Other notes to operating entities with the control power formed by special purpose entity or through entrusted operation or
tenancy
According to the equity trust agreement concluded between 68-Station Limited, one of FIYTA Hong Kong’s subsidiaries
and the trustee of NATURE ART LTD and PROTOP LTD on December 10, 2009, 68-Station, as the trustor, holds the right
to earnings of the shares, equity, and the relevant rights of LIANGYA and BAODING, and the contractual trustee agreed to
assign their rights at any time according to the trustor’s instructions. 68-Station thus held the control power over LIANGYA
and BAODING which were therefore put in the consolidation scope of 68-Station.
3. Note to Change in the Consolidation Scope
Note to Change in the Consolidation Scope
In the current year, as an enterprise under the common control in the Group merged Hengdarui, the consolidation scope
in the reporting period correspondingly increased.
4. Principal(s) newly included in the consolidation in the reporting period and principal(s) no
longer included in the consolidation in the reporting period
Inapplicable
5. Consolidation of the enterprises under the common control incurred in the reporting period
Inapplicable
100
FIYTA Holdings Ltd. 2013 Semi-Annual Report
6. Consolidation of the enterprises not under the common control incurred in the reporting
period
Inapplicable
7. Subsidiary reduced due to loss of control power resulting from sales of equity in the reporting
period
Inapplicable
8. Counterpurchase incurred in the reporting period
Inapplicable
9. Merger incurred in the reporting period
Inapplicable
10. The conversion rate of the principal statement items of the overseas operating entities
Assets and Liabilities
Items
June 30, 2013 January 1, 2013
FIYTA Hong Kong Limited HKD 1 = CNY 0.79655 HKD 1 = CNY 0.8109
World Watches International HKD 1 = CNY 0.79655 HKD 1 = CNY 0.8109
The Swiss Company S.FR. 1 = CNY 6.5034 S.FR. 1 = CNY 6.8219
Revenue, expenses and cash flow items
Items
First half year of 2013 First half year of 2012
FIYTA Hong Kong Limited HKD 1 = CNY 0.803725 HKD 1 = CNY 0.8130
World Watches International HKD 1 = CNY 0.803725 HKD 1 = CNY 0.8130
The Swiss Company S.FR. 1 = CNY 6.66265 S.FR. 1 = CNY 6.6493
VII. Notes to the principal items in the consolidated financial statements
1. Monetary fund
In CNY
Items End of the Reporting Period Beginning of the reporting period
101
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Amount in Amount in
Conversi Conversi
foreign Amount in CNY foreign Amount in CNY
on rate on rate
currency currency
Cash on hand -- -- 563,441.88 -- -- 538,810.69
CNY 534,583.93 1.0000 535,024.66 521,336.94 1.0000 521,336.94
HKD 315.33 0.7966 251.18 2,919.83 0.8109 2,367.69
US$ 598.00 6.1787 3,694.86 598.00 6.2855 3,758.73
Euro 514.45 8.0536 4,143.17 14.45 8.3176 120.19
Pound sterling 0.00 9.4213 0.00 0.00
Swiss Franc 3,125.75 6.5034 20,328.00 1,645.75 6.8219 11,227.14
Singapore dollars 0.00 4.8470 0.00 0.00
Bank deposit: -- -- 94,921,162.28 -- -- 139,868,866.49
83,029,108.1 112,614,731.
CNY 1.0000 83,029,108.11 1.0000 112,614,731.00
1 00
27,740,445.4
HKD 9,981,552.25 0.7966 7,950,805.44 0.8109 22,494,727.25
9
US$ 230,453.93 6.1787 1,423,905.70 213,763.50 6.2855 1,343,610.48
Euro 0.00 8.0536 0.00 0.00
Pound sterling 0.00 9.4213 0.00 0.00
Swiss Franc 387,081.07 6.5034 2,517,343.03 500,742.38 6.8219 3,415,797.76
Singapore dollars 0.00 4.8470 0.00 0.00
Other Monetary Fund: -- -- 5,520.86 -- -- 13,317.53
CNY 5,520.86 13,317.53
Total -- -- 95,490,125.02 -- -- 140,420,994.71
The accounts with recovery risks due to application restrictions such as mortgage, pledge or freezing or being deposited
abroad, should be explained separately
2. Transactional financial assets
Inapplicable
3. Notes receivable
(1) Classification of Notes Receivable
In CNY
Categories End of the Reporting Period Beginning of the reporting period
Bank acceptance 500,000.00 2,000,000.00
102
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Trade acceptance 5,000,000.00 0
Total 5,500,000.00 2,000,000.00
(2) Notes receivable already pledged at the end of the reporting period
Inapplicable
(3) Notes that are transferred into accounts receivable as the issuer fails to keep promise, and
that have been endorsed to any other party by the Company but are still undue at the end of the
reporting period
Inapplicable
4. Dividends receivable
Inapplicable
5. Interest receivable
Inapplicable
6. Accounts receivable
(1) Disclosure based on types of accounts receivable
In CNY
End of the Reporting Period Beginning of the reporting period
Book balance Bad debt reserve Book balance Bad debt reserve
Categories
Proporti Proporti Amoun Proporti Proportion
Amount Amount Amount
on (%) on (%) t on (%) (%)
Accounts receivable for which bad debt reserve has been provided based on the combination
192,74
Grouping of the 197,390,
54.88% 0.00 0% 3,481. 61.02% 0.00 0%
designated accounts 900.82
22
122,71
Grouping based on the 161,854, 6,254,75 6,337,338
45% 3.86% 1,131. 38.85% 5.16%
accounting age 223.84 9.59 .86
95
315,45
359,245, 6,254,75 6,337,338
Subtotal of grouping 99.89% 1.74% 4,613. 99.87% 2.01%
124.66 9.59 .86
17
Accounts receivable with
401,267. 401,267. 401,26 401,267.1
insignificant single amount 0.11% 1.85% 0.13% 2.13%
10 10 7.10 0
and provision of bad debt
103
FIYTA Holdings Ltd. 2013 Semi-Annual Report
reserve on individual basis
315,85
359,646, 6,656,02 6,738,605
Total -- -- 5,880. -- --
391.76 6.69 .96
27
Note to the categories of accounts receivable:
Accounts receivable with significant single amount and provision of bad debt reserve on individual basis
Inapplicable
In the grouping, the accounts receivable for which the bad debt reserve is provided based on the age analysis
In CNY
End of the Reporting Period Beginning of the reporting period
Book balance Book balance
Age Bad debt
Proporti Bad debt reserve Proporti
Amount Amount reserve
on (%) on (%)
Within a year
Including: -- -- -- -- -- --
121,208,736.2
Within a year 159,072,804.27 98.28% 5,601,899.18 98.77% 6,054,073.20
0
Subtotal within 121,208,736.2
159,072,804.27 98.28% 5,601,899.18 98.78% 6,054,073.20
a year 0
1 to 2 years 1,360,553.02 0.84% 114,631.76 1,024,812.69 0.84% 102,481.27
2 to 3 years 1,020,960.69 0.63% 306,288.21 327,400.75 0.27% 98,220.23
Over 3 years 399,905.86 0.25% 231,940.44 150,182.31 0.12% 82,564.16
Total 161,854,223.84 -- 6,254,759.59 122,711,131.95 -- 6,337,338.86
In the grouping, the account receivable for which reserve for bad debt is provided based on balance percentage:
Inapplicable
In the grouping, the accounts receivable for which the bad debt reserve is provided based on the other method:
In CNY
Description of grouping Book balance Bad debt reserve
Grouping of the designated
197,319,185.82 0.00
accounts
Total 197,319,185.82 0.00
At the end of the reporting period, accounts receivable with insignificant single amount and provision of bad debt reserve
104
FIYTA Holdings Ltd. 2013 Semi-Annual Report
on individual basis:
In CNY
Contents of accounts Provision proportion
Book balance Bad debt reserve Reason of provision
receivable (%)
Doubtful
401,267.10 401,267.10 100% Unrecoverable
accounts/bad debt
Total 401,267.10 401,267.10 -- --
(2) Accounts receivable reversed or recovered in the reporting period
Accounts receivable with significant single amount or undergoing separate impairment test despite insignificant single
amount and provision of bad debt reserve
In CNY
Contents of accounts Provision proportion
Book balance Bad debt reserve Reason of provision
receivable (%)
Doubtful
401,267.10 401,267.10 100% 无法收回
accounts/bad debt
Total 401,267.10 401,267.10 -- --
Note to accounts receivable with insignificant single amount but bigger risk in grouping after grouping based on credit risk
characteristics.
(3) Accounts receivable actually written-off in the reporting period
Inapplicable
(4) Accounts receivable from the shareholder holding over 5% (including 5%) of the Company’s
voting shares in the reporting period
Inapplicable
(5) Top five debtors of the accounts receivable
In CNY
Proportion in the total
Relationship with the
Organization Names Amount Year accounts receivable
Company
(%)
Shanxi International
Non-Related Party 5,502,285.53 Within a year 1.53%
Trade Center Co.,
105
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Ltd.
Fuzhou Dayang
General
Non-Related Party 5,493,571.04 Within a year 1.53%
Merchandise Co.,
Ltd.
Jinzhao Enterprise
Non-Related Party 4,632,747.78 Within a year 1.29%
Co., Ltd.
Shenzhen China
Non-Related Party 3,591,794.25 Within a year 1%
Resource Co., Ltd.
Heilongjiang Jinan
Europe Plaza
Non-Related Party 3,487,101.45 Within a year 0.97%
Development Co.,
Ltd.
Total -- 22,707,500.05 -- 6.32%
(6) Accounts receivable from the related parties
In CNY
Relationship with the Proportion in the total
Organization Names Amount
Company accounts receivable (%)
Controlled by the same
Rainbow Supermarket 2,905,953.94 0.81%
parent company
The Company’s eventual
AVIC 1,234,321.00 0.34%
controller
Shenzhen CATIC
Controlled by the same
Enterprise Group Training 1,764.00 0%
parent company
Center
Controlled by the same
Shennan Circuit Co., Ltd. 1,095,614.93 0.3%
parent company
Shennan Circuit Co., Ltd. Controlled by the same
5,500,000.00 1.53%
(Notes receivable) parent company
CATIC Electronic
Controlled by the same
Measuring Instruments 103,700.00 0.03%
parent company
Co., Ltd
Total -- 10,841,353.87 3.01%
(7) Accounts receivable eventually recognized
Inapplicable
106
FIYTA Holdings Ltd. 2013 Semi-Annual Report
（8）In case of securitization with the accounts receivable as the object, the amounts of the
assets and liabilities continuing to be involved in the formation are stated.
Inapplicable
7. Other receivables
(1) Other receivables disclosed based on categories
In CNY
End of the Reporting Period Beginning of the reporting period
Book balance Bad debt reserve Book balance Bad debt reserve
Categories
Propor Propor Propor
Proporti
Amount tion Amount tion Amount Amount tion
on (%)
(%) (%) (%)
Other receivables with provision of bad debt reserve based on grouping
Grouping of the 11,279,85 32.89 10,879,09
0.00 0% 31.31% 0.00 0%
designated accounts 9.38 % 9.62
Grouping based on 23,012,76 67.11 1,428,998 23,869,56 1,395,054.2
6.21% 68.69% 5.84%
the accounting age 4.09 % .13 0.85 1
34,292,62 1,428,998 34,748,66 1,395,054.2
Subtotal of grouping 100% 4.17% 100% 4.01%
3.47 .13 0.47 1
34,292,62 1,428,998 34,748,66 1,395,054.2
Total -- -- -- --
3.47 .13 0.47 1
Note to categories of other receivables
Other receivables with significant single amount and provision of bad debt reserve
Inapplicable
Other receivables with provision of bad debt reserve based on age analysis in grouping.
In CNY
End of the Reporting Period Beginning of the reporting period
Book balance Book balance
Age Bad debt
Prop Prop
Bad debt reserve
Amount ortio reserve Amount ortio
n (%) n (%)
Within a year
Including:
Within a year 20,372,590.45 88.5 993,400.81 20,659,513.93 86.5 1,017,165.01
107
FIYTA Holdings Ltd. 2013 Semi-Annual Report
3% 5%
Subtotal within a 88.5 86.5
20,372,590.45 993,400.81 20,659,513.93 1,017,165.01
year 3% 5%
8.37 12.6
1 to 2 years 1,926,304.21 212,257.82 3,008,908.59 299,369.04
% 1%
2.93 0.46
2 to 3 years 674,612.10 203,710.83 110,245.00 33,073.50
% %
0.17 0.38
Over 3 years 39,257.33 19,628.67 90,893.33 45,446.66
% %
Total 23,012,764.09 -- 1,428,998.13 23,869,560.85 -- 1,395,054.21
Other receivables with provision of bad debt reserve based on the balance percentage method in grouping.
Inapplicable
Other receivables with provision of bad debt reserve based on other method in grouping
In CNY
Grouping Description Book balance Bad debt reserve
Grouping of the designated accounts 11,279,859.38 0.00
Total 11,279,859.38 0.00
Other receivables with insignificant single amount but with provision of bad debt reserve by individual
Inapplicable
(2) Other receivables reversed or recovered in the reporting period
Inapplicable
(3) Other receivables actually written-off in the reporting period
Inapplicable
(4) Other receivables from the shareholder holding over 5% (including 5%) of the Company’s
voting shares in the reporting period
Inapplicable
(5)Nature or description of the other receivables with bigger amount
In CNY
Nature or content of Proportion in the total other
Organization Names Amount
the accounts receivables (%)
Shenzhen China Resource 3,121,928.00 Deposit in security 9.1%
108
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Co., Ltd.
Shenzhen Yitian Holiday
World Real Estate 1,090,523.00 Deposit in security 3.18%
Development Co., Ltd.
SMH International Trading Commodity
904,078.58 2.64%
(Shanghai) Co., Ltd. promotion
Shenzhen Chengtian Advertisement
800,000.00 2.33%
Advertisement Co., Ltd. security deposit
Jebsen & Co (China) Ltd. 737,200.00 Deposit in security 2.15%
Jihui Commercial
Shopping mall
Management (Shanghai) 628,583.12 1.83%
deposit and rent
Co., Ltd
Shopping mall
Shenzhen Airport Co., Ltd. 538,060.00 1.57%
deposit and rent
Total 7,820,372.70 -- 22.8%
Note:
(6) Top Five Debtors of the Other Receivables
In CNY
Relationship with the Proportion in the total
Organization Names Amount Year
Company other receivables (%)
Shenzhen China
Non-Related Party 3,121,928.00 Within a year 9.1%
Resource Co., Ltd.
Shenzhen Yitian
Holiday World Real
Non-Related Party 1,090,523.00 Within a year 3.18%
Estate Development
Co., Ltd.
SMH International
Trading (Shanghai) Non-Related Party 904,078.58 Within a year 2.64%
Co., Ltd.
Shenzhen Chengtian
Advertisement Co., Non-Related Party 800,000.00 Within a year 2.33%
Ltd.
Jebsen & Co (China)
Non-Related Party 737,200.00 Within a year 2.15%
Ltd.
Total -- 6,653,729.58 -- 19.4%
(7) Other receivables from related parties
In CNY
109
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Relationship with the Proportion in the total other
Organization Names Amount
Company receivables (%)
Controlled by the same
CATIC Property 13,500.00 0.06%
parent company
Controlled by the same
Rainbow Supermarket 150,801.60 0.66%
parent company
Shenzhen CATIC
Controlled by the same
Enterprise Group Training 150,000.00 0.65%
parent company
Center
Chengdu CATIC Real
Controlled by the same
Estate Development Co., 100,536.00 0.44%
parent company
Ltd.
Ganzhou CATIC Real
Controlled by the same
Estate Development Co., 122,665.60 0.53%
parent company
Ltd.
Total -- 537,503.20 2.34%
(8) Other receivable terminated for recognition
Inapplicable
(9) In case of securitization on the asset of other receivables, the amounts of the assets and
liabilities continuing to be involved in the formation are stated.
Inapplicable
8. Advance Payment
(1) Advance payment presented based on age
In CNY
End of the Reporting Period Beginning of the reporting period
Age Proportion Proportion
Amount Amount
(%) (%)
Within a
53,795,426.53 70.53% 50,392,708.30 66.82%
year
1 to 2 years 22,078,333.60 28.94% 23,964,370.10 31.78%
2 to 3 years 339,377.00 0.44% 726,788.00 0.96%
Over 3
66,884.00 0.09% 334,700.00 0.44%
years
110
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Total 76,280,021.13 -- 75,418,566.40 --
Note to the age of advance payments
(2) Top Five Receivers of Advance Payment
In CNY
Relationship with the Causes of
Organization Names Amount Time
Company unsettlement
China Tenth
Engineering payment
Metallurgy Group Non-Related Party 8,405,680.16 Within a year
in advance
Limited Corporation
Dongguan Junyi
Advance for
Precision Hardware Non-Related Party 4,234,367.11 Within a year
purchase of watches
Products Co., Ltd.
Beat Blattmann Advance for
Non-Related Party 3,823,830.34 Within a year
Marketing purchase of watches
Liberty Time Center Advance for
Non-Related Party 2,130,267.60 Within a year
GmbH purchase of watches
SAN SUN
Advance for
INDUSTRIAL CO., Non-Related Party 2,091,074.84 Within a year
purchase of watches
LTD.
Total -- 20,685,220.05 -- --
Note to the major organizations of advance payments
(3) Advance payment from the shareholder holding over 5% (including 5%) of the Company’s
voting shares in the reporting period
Inapplicable
(4) Note to the advance payment
Inapplicable
9. Inventories
(1) Classification of Inventories
In CNY
End of the Reporting Period Beginning of the reporting period
Provision
Items Provision for
Book balance for price Book value Book balance Book value
price falling
falling
111
FIYTA Holdings Ltd. 2013 Semi-Annual Report
4,886,794.8 90,882,330.3 110,918,957. 106,032,162.
Raw materials 95,769,125.25 4,886,794.86
6 9 01 15
Products in 18,234,744.3
18,234,744.36 0.00 5,034,098.24 0.00 5,034,098.24
process 6
1,801,665,749. 24,516,776. 1,777,148,97 1,791,715,76 19,516,776.3 1,772,198,98
Goods in stock
83 32 3.51 4.69 2 8.37
1,915,669,619. 29,403,571. 1,886,266,04 1,907,668,81 24,403,571.1 1,883,265,24
Total
44 18 8.26 9.94 8 8.76
(2) Provision for price falling of inventories
In CNY
Reserve Decrease in the reporting period
Opening book Ending book
Categories provided in the
balance Reversal Written-off balance
period
Raw materials 4,886,794.86 0.00 0.00 0.00 4,886,794.86
Products in
0.00 0.00 0.00 0.00 0.00
process
Goods in stock 19,516,776.32 5,000,000.00 0.00 0.00 24,516,776.32
Total 24,403,571.18 5,000,000.00 0.00 0.00 29,403,571.18
(3) About provision for price falling of inventories
Cause of reversal of the Proportion of the amount
Basis for provision for price provision for price falling of reversed in the ending
Items
falling of inventories inventories in the reporting balance of the inventories
period in the reporting period (%)
Net realizable value lower
Raw materials than the corresponding Inapplicable
cost
Net realizable value lower
Goods in stock than the corresponding Inapplicable
cost
Note to the inventories
10. Other current assets
In CNY
Items End of the Reporting Period Beginning of the reporting period
Input VAT to be offset 22,334,926.69 43,674,175.80
112
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Rent 5,360,059.79 6,037,338.76
Others 0.00 1,331,887.41
Total 27,694,986.48 51,043,401.97
Note to other current liabilities:
The Group’s input VAT from procurements not yet offset in the reporting period.
11. Available-for-sale financial assets
Inapplicable
12. Held-to-maturity investments
Inapplicable
13. Long term accounts receivable
Inapplicable
14. Investment in joint ventures and associates
In CNY
Proportion
Proportion
of the Total
of the Net profit in
Company’s Total Total net business
shares held Total assets the
Investees voting liabilities at asset at income in
by the at year end reporting
power in the year end year end the report
Company period
investee period
(%)
(%)
I. Joint venture
II. Associates
Shanghai
Watch 80,058,653. 4,916,450.9 75,142,202. 32,459,523.
25% 25% 433,762.90
Industry 09 5 14 98
Co., Ltd.
Note to the significant difference between the joint ventures & associates and the Company in important accounting
policies and accounting estimate:
113
FIYTA Holdings Ltd. 2013 Semi-Annual Report
15. Long-term equity investment
(1) Statement of Long Term Equity Investment
In CNY
Note to
the
inconsis
tence
Proporti
between
Proporti on of the
the
on of the investee Reserve
proporti
investee ’s for Cash
on of the Reserve
Way of Investm Increase ’s vote-be impairm dividend
Investee Opening Ending shares for
calculati ent /decreas shares aring ent in the
s balance balance in the impairm
on costs e held by shares provided report
investee ent
the held by in the period
s held
Compan the period
by the
y (%) Compan
Compan
y (%)
y and
the
voting
power
Shangh
ai Watch Equity 39,916, 41,648, 108,440 41,757, Inapplic
25% 25% 0.00 0.00
Industry method 500.00 741.79 .73 182.52 able
Co., Ltd.
Xi’an
Tangche Cost 85,000. 85,000. 85,000. Inapplic
0.00 0.1% 0.1% 0.00 0.00
ng Co., method 00 00 00 able
Ltd.
Shenzh
en
CATIC
Cost 300,000 300,000 300,000 Inapplic 300,000
Culture 0.00 15% 15% 0.00 0.00
method .00 .00 .00 able .00
Commu
nication
Co., Ltd.
40,301, 42,033, 108,440 42,142, 300,000
Total -- -- -- -- 0.00 0.00
500.00 741.79 .73 182.52 .00
114
FIYTA Holdings Ltd. 2013 Semi-Annual Report
(2) About the ability of transferring fund to the investing company being restricted
Inapplicable
16. Investment Based Real Estate
(1) Investment based real estate measured based on costs
In CNY
Opening book Increase in the Decrease in the
Items Ending book balance
balance reporting period reporting period
I. Total Book Costs 340,029,020.44 0.00 0.00 340,029,020.44
1. Housing and
340,029,020.40 0.00 0.00 340,029,020.40
buildings
II. Total of
accumulative
depreciation and 95,649,589.81 4,571,872.94 0.00 100,221,462.75
accumulative
amortization
1. Housing and
95,649,589.81 4,571,872.94 0.00 100,221,462.75
buildings
III. Total net book
value of the
244,379,430.63 -4,571,872.94 0.00 239,807,557.69
investment based
real estate
1. Housing and
244,379,430.63 -4,571,872.94 0.00 239,807,557.69
buildings
IV. Total
accumulative
amount of the
provision for 0.00 0.00 0.00 0.00
impairment of
investment based
real estate
1. Housing and
0.00 0.00 0.00 0.00
buildings
V. Total book value
of the investment 244,379,430.63 -4,571,872.94 0.00 239,807,557.69
based real estate
1. Housing and
244,379,430.63 -4,571,872.94 0.00 239,807,557.69
buildings
115
FIYTA Holdings Ltd. 2013 Semi-Annual Report
In CNY
Reporting period
Depreciation and amortization amount in the report period 4,571,872.94
Amount of reserve for impairment of the investment based real estate
0.00
provided in the reporting period
(2) Investment based real estate measured based on fair value
Inapplicable
17. Fixed assets
(1) About Fixed assets
In CNY
Opening book Decrease in the Ending book
Items Increase in the reporting period
balance reporting period balance
422,423,727.0 425,594,025.4
I. Total Book Costs 6,789,433.77 3,619,135.34
3 6
Including: housing and 306,333,695.0 305,094,336.3
515,817.08 1,755,175.91
buildings 9 0
Machines &
41,992,755.98 2,163,119.88 85,050.08 44,070,825.78
equipment
Motor vehicles 13,805,058.95 800,562.52 363,466.00 14,242,155.47
Electronic
24,919,765.50 1,176,935.22 300,797.11 25,795,903.61
equipment
Others 35,372,451.51 2,132,999.07 1,114,646.24 36,390,804.34
New increase
Amount provided Ending balance
Opening book in the Decrease in the
-- in the reporting of the reporting
balance reporting reporting period
period period
period
II. Total accumulated 104,622,459.1
11,435,385.94 1,675,177.55 114,382,667.55
depreciation 6
Including: housing and
33,708,825.54 5,031,237.33 412,144.00 38,327,918.87
buildings
Machines &
17,131,790.81 1,936,264.47 669.26 19,067,386.02
equipment
Motor vehicles 8,221,111.90 814,555.80 314,655.20 8,721,012.50
Electronic 16,653,120.95 1,482,576.48 273,766.78 17,861,930.65
116
FIYTA Holdings Ltd. 2013 Semi-Annual Report
equipment
Others 28,907,609.96 2,170,751.86 673,942.31 30,404,419.51
Ending balance
Opening book
-- -- of the reporting
balance
period
III. Total net book value 317,801,267.8
-- 311,211,357.91
of fixed assets 7
Including: housing and 272,624,869.5 266,766,417.3
--
buildings 5 9
Machines &
24,860,965.17 -- 25,003,439.76
equipment
Motor vehicles 5,583,947.05 -- 5,521,142.97
Electronic
8,266,644.55 -- 7,933,972.96
equipment
Others 6,464,841.55 -- 5,986,384.83
IV. Total provision for
0.00 -- 0.00
impairment
Including: housing and
0.00 -- 0.00
buildings
Machines &
0.00 -- 0.00
equipment
Motor vehicles 0.00 -- 0.00
Electronic
0.00 -- 0.00
equipment
Others 0.00 -- 0.00
V. Total book value of 317,801,267.8
-- 311,211,357.91
fixed assets 7
Including: housing and 272,624,869.5 266,766,417.3
--
buildings 5 9
Machines &
24,860,965.17 -- 25,003,439.76
equipment
Motor vehicles 5,583,947.05 -- 5,521,142.97
Electronic
8,266,644.55 -- 7,933,972.96
equipment
Others 6,464,841.55 -- 5,986,384.83
The depreciation amount in the reporting period was CNY ; the cost of the fixed assets transferred in from the
construction-in-process amounted to CNY .
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
(2) About temporarily idle fixed assets
Inapplicable
(3) Fixed assets rented through financing lease
Inapplicable
(4) Fixed assets leased through operating lease
Inapplicable
(5) About the fixed assets for sale held at the end of the reporting period
Inapplicable
(6) Fixed asset whose property title certificate has not been issued
Cause of no certificate of title being Predicted time of handling the
Items
granted procedures for the certificate of title
Office space of Harbin Branch Defects existing in the property right unknown
Notes to the fixed assets
As at June 30, 2012, as there existed defects in the property right of the buiding with the original book value amounting to
CNY 593,340.00 (book value amounting to CNY 359,818.08), the application for the certificate of title failed;
As at June 30, 2013, the building with the original book value of CNY 25,602,352.34 (book value amounting to CNY
23,325,449.99) was taken as the collateral for the long term loan amounting to CNY 7,331,286.38.
18. Construction-in-process
(1) About construction-in-process
In CNY
End of the Reporting Period Beginning of the reporting period
Items Book Reserve for Book Reserve for
Book value Book value
balance impairment balance impairment
Guangming New Zone 2,883,218.5 2,883,218.5 1,523,855.0
0.00 0.00 1,523,855.00
Watch Base 7 7 0
Refurbishment of the
2,297,787.4 2,297,787.4 2,165,064.1
offices on the 20th Floor 0.00 0.00 2,165,064.12
8 8 2
of FIYTA Technology
118
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Building
Refurbishment of the
west zone of the 19th
0.00 0.00 0.00 177,446.67 0.00 177,446.67
Floor of FIYTA
Technology Building
5,181,006.0 5,181,006.0 3,866,365.7
Total 0.00 0.00 3,866,365.79
5 5 9
(2) Change of key construction-in-process project
In CNY
Includin
Proport Interest
g:
ion of Accum capitali
Beginni amount
Increas Transfe project ulative zation End of
ng of Progre of
e in the rred in Other s put amount rate in the
the ss of interest Funds
Items Budget reportin to the decrea into of the the Reporti
reportin the capitali source
g fixed se practic interest reportin ng
g project zation
period asset e in the capitali g Period
period in the
budget zation period
report
(%) (%)
period
Guang
ming
New 1,523,8 1,359,3 2,883,2
自筹
Zone 55.00 63.57 18.57
Watch
Base
1,523,8 1,359,3 2,883,2
Total -- -- -- --
55.00 63.57 18.57
Note to the change of the construction-in-process project
(3) Impairment reserve for the construction- in-process
Inapplicable
(4) Work progress of the key construction-in-process
Inapplicable
(5) Note to the construction-in-process
Inapplicable
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
19. Engineering Supplies
Inapplicable
20. Disposal of fixed assets
Inapplicable
21. Productive biological asset
Inapplicable
22. Oil and gas assets
Inapplicable
23. Intangible Assets
(1) About intangible assets
In CNY
Opening book Increase in the Decrease in the Ending book
Items
balance reporting period reporting period balance
I. Total Book Costs 48,781,266.42 205,796.69 0.00 48,987,063.11
Land use right 34,854,239.40 0.00 0.00 34,854,239.40
Software system 3,562,205.50 205,796.69 0.00 3,768,002.19
Trademark use right 10,364,821.52 0.00 0.00 10,364,821.52
II. Total accumulated
12,031,639.24 701,205.67 0.00 12,732,844.91
amortization
Land use right 6,225,134.84 359,973.18 0.00 6,585,108.02
Software system 1,859,114.59 335,572.51 0.00 2,194,687.10
Trademark use right 3,947,389.81 5,659.98 0.00 3,953,049.79
III. Total net value of
36,749,627.18 -495,408.98 0.00 36,254,218.20
intangible assets
Land use right 28,629,104.56 -359,973.18 0.00 28,269,131.38
Software system 1,703,090.91 -129,775.82 0.00 1,573,315.09
Trademark use right 6,417,431.71 -5,659.98 0.00 6,411,771.73
IV. Total provision for
0.00 0.00 0.00 0.00
impairment
Land use right
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
Software system
Trademark use right
Total book value of
36,749,627.18 -495,408.98 0.00 36,254,218.20
intangible assets
Land use right 28,629,104.56 -359,973.18 0.00 28,269,131.38
Software system 1,703,090.91 -129,775.82 0.00 1,573,315.09
Trademark use right 6,417,431.71 -5,659.98 0.00 6,411,771.73
The amount amortized in the reporting period was CNY 701205.67.
(2) Expenses for the Company’s development projects
Inapplicable
24. Goodwill
In CNY
Increase in the Decrease in Reserve for
Investees or matters forming Opening
reporting the reporting Ending balance impairment
the goodwill balance
period period at year end
1,735,756.4
Lishan Department Store 1,735,756.48 0.00 0.00 1,735,756.48
8
1,735,756.4
Total 1,735,756.48 0.00 0.00 1,735,756.48
8
Method for impairment testing and provision of reserve for impairment
HARMONY, one of the Company’s subsidiaries acquired 100% equity in Lishan Department Store on March 31, 2008 with
valuable consideration of CNY 1,200,000.00 and the fair value of the recognizable net assets of Lishan Department Store
on the acquisition day was CNY - 535,756.48. HARMONY presented the margin amounting to CNY 1,735,756.48 in the
consolidated financial statements as “goodwill”. At the end of 2008, HARMONY made impairment test of the goodwill and
charged the loss from impairment of the goodwill lower than the recoverable amount totaling CNY 1,735,756.48 to the
gain and loss of the year 2008.
25. Long-term expenses to be apportioned
In CNY
Amount
Beginning of the Increase in the End of the Reasons of other
Items amortized in the Other decrease
reporting period report period Reporting Period decreases
report period
Cost for making 43,797,298.00 15,175,476.22 18,596,322.38 40,376,451.84
121
FIYTA Holdings Ltd. 2013 Semi-Annual Report
special counters
Refurbishment 75,107,963.72 28,405,504.85 23,002,288.01 80,511,180.56
Endorsement fee 6,769,273.68 1,400,943.40 1,150,000.02 7,020,217.06
Others 600,076.18 3,461,053.06 2,780,810.37 1,280,318.87
Total 126,274,611.58 48,442,977.53 45,529,420.78 129,188,168.33 --
Note to the long term expenses to be apportioned
Note: The Group’s long term expenses to be apportioned were amortized by means of straight-line method, the
amortization term for the refurbishment costs was 5 years and that for other items was 2 years.
26. Deferred Income Tax Asset and Deferred Income Tax Liability
(1) The deferred income tax asset/deferred income tax liability is not presented with the net
amount after offsetting
Deferred Income Tax Asset/Deferred Income Tax Liability Already Recognized
In CNY
Items End of the Reporting Period Beginning of the reporting period
Deferred income tax asset:
Reserve for impairment of the assets 8,862,625.31 7,603,452.98
Offsetable loss 2,821,441.27 2,930,736.04
Offset of the internal unrealized profit 51,008,457.42 47,528,528.65
Deferred income 195,000.00 201,500.00
Others 0.00 3,075,469.94
Sub-total 62,887,524.00 61,339,687.61
Deferred income tax liabilities:
Valuation of transactional financial
instrument and derivative financial 0.00 0.00
instrument
Change of the fair value of the
available-for-sale financial assets charged 0.00 0.00
to the capital reserve
Statement of unrecognized deferred income tax asset
In CNY
Items End of the Reporting Period Beginning of the reporting period
Offsettable provisional discrepancy 600,000.00 2,635,756.48
Offsettable loss 0.00 0.00
122
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Total 600,000.00 2,635,756.48
The offsettable loss of the unrecognized deferred income tax shall be due in the following years:
In CNY
End of the Reporting Beginning of the
Year Remark
Period reporting period
Statement of taxable discrepancy and offsettable discrepancy items
In CNY
Items of temporary discrepancy
Items Beginning of the reporting
End of the reporting period
period
Taxable discrepancy items
Offsettable discrepancy items
Reserve for impairment of the assets 37,488,596.00 32,537,231.35
Offsettable loss 12,583,241.37 13,095,609.63
Offset of the internal unrealized profit 208,108,958.64 193,473,413.38
Deferred income 780,000.00 906,000.00
Others 0.00 12,301,879.76
Sub-total 258,960,796.01 252,314,134.12
(2) Presentation of the net amount of the deferred income tax asset and deferred income tax
liability after offsetting
Items consisting of deferred income tax assets and liabilities after mutual offsetting
In CNY
Offsettable or
Offsettable or Deferred income
Deferred income taxable
taxable temporary tax assets or
tax assets or temporary
discrepancy after liabilities after
liabilities after discrepancy after
Items mutual offsetting at mutual offsetting
mutual offsetting mutual offsetting
the end of the at the beginning
at the end of the at the beginning
reporting period of the reporting
reporting period of the reporting
period
period
Deferred income tax asset 62,887,524.00 61,339,687.61
Statement of mutual offsetting of deferred income tax asset with deferred income tax liability
Inapplicable
Note to the deferred income tax asset and deferred income tax liability
27. Statement of Reserve for Impairment of Assets
In CNY
123
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Opening book Increase in the Decrease in the reporting period Ending book
Items
balance reporting period Reversal Written-off balance
I. Reserve of bad debts 8,133,660.17 419,642.51 468,277.86 0.00 8,085,024.82
II. Reserve for price
24,403,571.18 5,000,000.00 0.00 0.00 29,403,571.18
falling of inventories
V. Provision for
impairment of long-term 300,000.00 0.00 0.00 0.00 300,000.00
equity investments
VI. Provision for
impairment of investment 0.00 0.00 0.00 0.00 0.00
based real estate
VII. Provisions for
impairment of fixed 0.00 0.00 0.00 0.00 0.00
assets
IX. Provision for
impairment of 0.00 0.00 0.00 0.00 0.00
construction-in-progress
XI. Provision for
impairment of oil and gas 0.00 0.00 0.00 0.00 0.00
assets
XII. Provision for
impairment of intangible 0.00 0.00 0.00 0.00 0.00
assets
XIII. Provision for
1,735,756.48 0.00 0.00 0.00 1,735,756.48
impairment of goodwill
Total 34,572,987.83 5,419,642.51 468,277.86 0.00 39,524,352.48
Note to the statement of impairment of assets
28. Other non-current assets
Inapplicable
29. Short-term Borrowings
(1) Classification of Short-term Borrowings
In CNY
Items End of the Reporting Period Beginning of the reporting period
Secured borrowings 918,787,629.42 1,409,800,000.00
Total 918,787,629.42 1,409,800,000.00
124
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Note to classification of the short-term borrowings
(2) Short term borrowings already due but remaining outstanding
Inapplicable
30. Trading financial liabilities
Inapplicable
31. Notes Payable
Inapplicable
32. Accounts payable
(1) About accounts payable
In CNY
Items End of the Reporting Period Beginning of the reporting period
Trade accounts payable 170,308,759.81 181,379,333.93
Payables for materials 40,779,361.51 29,706,892.74
Engineering warranty fee payable 211,339.76 211,339.76
Total 211,299,461.08 211,297,566.43
(2) Accounts payable to the shareholder holding over 5% (including 5%) of the Company’s voting
shares in the reporting period
Inapplicable
(3) Statement of big accounts payable with age exceeding 1 year
In CNY
Creditors’ Names Amount Causes of outstanding
Engineering payment of the Hi-tech Industrial Park 211,339.76 Outstanding incurred
Chengheng International Limited 217,714.64 Outstanding incurred
Shenzhen Tianjiuxing Industrial Co., Ltd. 773,252.30 No invoice is issued
Shenzhen Borui Trading Co., Ltd. 581,067.92 No invoice is issued
Shenzhen Timepieces Market 179,679.40 No invoice is issued
Zhonglian Advanced Iron & Steel 96,797.44 No invoice is issued
Total 2,059,851.46
125
FIYTA Holdings Ltd. 2013 Semi-Annual Report
33. Advance Receipts
(1) About advanced receipts
In CNY
Items End of the Reporting Period Beginning of the reporting period
Loan received in advance 6,715,812.84 12,131,032.89
Total 6,715,812.84 12,131,032.89
(2) Advance receipts from the shareholder holding over 5% (including 5%) of the Company’s
voting shares in the reporting period
Inapplicable
(3) Note to the big advance receipts with age exceeding 1 year
Inapplicable
34. Salaries payable to employees
In CNY
Opening book Increase in the Decrease in the reporting Ending book
Items
balance reporting period period balance
I. Salaries,
bonus,
27,778,001.08 153,744,565.61 166,349,941.70 15,172,624.99
allowance and
subsidy
II. Staff’s Welfare 0.00 4,059,514.15 4,059,514.15 0.00
III. Social
0.00 21,252,570.75 21,252,570.75 0.00
security
Including: 1.
Medical
0.00 5,791,707.36 5,791,707.36 0.00
insurance
premium
2. Basic
endowment
0.00 13,356,319.61 13,356,319.61 0.00
insurance
premium
3. Contribution to
the annuity 0.00 0.00 0.00 0.00
scheme
4.
0.00 1,078,144.20 1,078,144.20 0.00
Unemployment
126
FIYTA Holdings Ltd. 2013 Semi-Annual Report
insurance
premium
5. Occupational
insurance 0.00 449,251.63 449,251.63 0.00
premium
6. Maternity
insurance 0.00 498,614.00 498,614.00 0.00
premium
7. Others 0.00 3,435.45 3,435.45 0.00
IV. Public
reserve for 0.00 6,043,694.98 6,039,051.18 4,643.80
housing
V. Welfare of
0.00 100,000.00 100,000.00 0.00
dismissal
VI. Others 312,978.14 3,247,154.67 3,245,507.58 314,625.23
Where: 1. Trade
union and
312,978.14 3,093,754.67 3,092,107.58 314,625.23
employee’s
education budget
2. Others 0.00 153,400.00 153,400.00 0.00
Total 28,090,979.22 188,447,500.16 201,046,585.36 15,491,894.02
Of the employees’ salaries payable, the amount of the arrears was CNY 0.00.
The amount of the trade union and employees’ education budget was CNY 314,625.23, the amount of the non-monetary
welfare was CNY 0.00 and the compensation given due to discharge of the labor relations was CNY 0.00.
Predicted pay time, amount, etc. of the staff’s salaries payable:
The Group predicted that the staff’s salaries payable not provided at year end shall be distributed in the next fiscal year.
35. Payable Taxes
In CNY
Beginning of the reporting
Items End of the Reporting Period
period
Value-added tax 40,391,827.59 29,641,692.34
Consumption tax 193,846.15 32,555.56
127
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Business tax 647,322.37 669,050.42
Enterprise income tax 19,964,439.28 22,388,435.03
Individual income tax 671,549.72 1,230,752.82
Urban maintenance and construction tax 429,769.03 392,294.10
Property tax 46,090.99 40,390.99
Education surcharge 173,883.31 174,743.58
Stamp tax 235,240.62 709,908.93
Dyke protection surcharge 52,598.27 55,574.92
Others 179,198.92 369,676.54
Total 62,985,766.25 55,705,075.23
Note to the taxes payable: in case the local taxation authority approved the taxable income between the branch
companies and branch factories are mutually adjustable, it is necessary to specify the process of tax calculation.
36. Interest payable
In CNY
Beginning of the reporting
Items End of the Reporting Period
period
Interest of the long term loan in which the due
principal shall be paid and interest is paid in 0.00 0.00
installment
Interest of enterprise bonds 6,720,000.00 0.00
Interest payable of the short trm loans
17,324,496.13 7,376,397.56
Total 24,044,496.13 7,376,397.56
Note to the interest payable:
Interest payable at the end of the reporting period amounting to CNY 24,044,496.13, increased by CNY 16,668,098.57
over the year beginning with growth rate of 225.97%, was mainly due to that the financial management based entrusted
loan from Bank of China amounting to CNY 390 million was due for repaying the principal and interest and the Company
made provision for the interest in the reporting period; in addition, as the Company issued company bonds in the reporting
period and provided bond interest for the CNY 400 million of company bonds in the reporting period. Refer to Note 43 –
Bonds payable.
37. Dividend payable
Inapplicable
128
FIYTA Holdings Ltd. 2013 Semi-Annual Report
38. Other Payables
(1) About other payables
In CNY
Beginning of the reporting
Items End of the Reporting Period
period
Within a year 26,358,424.07 26,922,292.71
1 to 2 years 2,549,369.34 1,128,478.98
2 to 3 years 568,673.12 1,480,662.36
Over 3 years 8,592,369.81 7,921,980.06
Total 38,068,836.34 37,453,414.11
(2) Of the other payables, the amount due to the shareholder holding over 5% (including 5%) of
the Company’s voting shares in the reporting period
Inapplicable
(3) Note to other payables with big amount with age exceeding 1 year
In CNY
Creditors’ Names Amount Cause of Will it be repaid after
outstanding the report day?
Shenzhen Tencent Computer System Co., Ltd. 2,600,000.00 Still in lease term No
Oracle Software Research and Development (She 681,990.00 Still in lease term No
nzhen) Co., Ltd.
Zhu Jin 500,000.00 Deposit in security No
for meal card
VIA Technologies Shenzhen, Co., Ltd 482,965.70 Still in lease term No
Shenzhen Youli Self-service KARAOKE BAR Co., 432,429.00 Still in lease term No
Ltd.
Shenzhen CATIC Real Estate Co., Ltd. 424,800.00 Still in lease term No
Shenzhen Good Family Sports Goods Franchise 414,630.00 Still in lease term No
Co., Ltd.
Bowei Technology (Shenzhen) Co., Ltd. 375,432.24 Still in lease term No
China Merchants Bank Co., Ltd. Shenzhen 349,692.00 Still in lease term No
Technology Park Sub-branch
Shenzhen Miandianwang Catering Chain Restaur 329,000.00 Still in lease term No
129
FIYTA Holdings Ltd. 2013 Semi-Annual Report
ants Co., Ltd.
Shenzhen Yong'antang Chain Pharmacy Co., Ltd. 301,644.00 Still in lease term No
Total 6,892,582.94
(4) Description of other payables with bigger amount
In CNY
Creditors’ Names Amount at year end Nature or Content
Shenzhen Tencent Computer System Co., Ltd. 2,600,000.00 Deposit from lessee
Oracle Software Research and Development (Shenzhen) Co., Ltd. 681,990.00 Deposit from lessee
Zhu Jin 500,000.00 Deposit from lessee
VIA Technologies Shenzhen, Co., Ltd 482,965.70 Deposit from lessee
Shenzhen Youli Self-service KARAOKE BAR Co.,Ltd. 432,429.00 Deposit from lessee
Shenzhen CATIC Real Estate Co., Ltd. 424,800.00 Deposit from lessee
Shenzhen Good Family Sports Goods Franchise Co., Ltd. 414,630.00 Deposit from lessee
Bowei Technology (Shenzhen) Co., Ltd. 375,432.24 Deposit from lessee
Reward from the 11th China Patent Award 350,000.00 Reward of the patent
award payable
China Merchants Bank Co., Ltd. Shenzhen Technology Park 349,692.00 Deposit from lessee
Sub-branch
Shenzhen Miandianwang Catering Chain Restaurants Co., Ltd. 329,000.00 Deposit from lessee
Shenzhen Yong'antang Chain Pharmacy Co., Ltd. 301,644.00 Deposit from lessee
Chen Zhaozhong 796,600.00 Advance payment
Sun Dawei 1,158,256.40 Advance payment
Total 9,197,439.34
39. Predicted liabilities
Inapplicable
40. Non-current liabilities due within a year
(1) About non-current liabilities due within a year
In CNY
Items End of the Reporting Period Beginning of the reporting period
130
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Long-term loan due within 1 year 54,827,407.00 55,846,683.00
Total 54,827,407.00 55,846,683.00
(2) Long-term loan due within one year
Long-term loan due within one year
In CNY
Items End of the Reporting Period Beginning of the reporting period
Secured loan 54,827,407.00 55,846,683.00
Total 54,827,407.00 55,846,683.00
Of the long term loan due within a year, amount of the overdue loans approved for postponing was CNY0.00.
Top five creditors of the long term loan due within 1 year
In CNY
Beginning of the reporting
End of the Reporting Period
period
Loan Loan Loan expiry Interest rate
Currency Amount in Amount in Amount in Amount in
suppliers starting date date (%)
foreign function foreign function
currency currency currency currency
China
Construction
August 18, August 18, 34,435,000. 27,413,703. 34,435,000. 27,923,341.
Bank (Asia) HK$ 3%
2011 2013 00 50 00 50
Corporation
Limited
China
Construction
September September 34,435,000. 27,413,703. 34,435,000. 27,923,341.
Bank (Asia) HK$ 3%
23, 2011 23, 2013 00 50 00 50
Corporation
Limited
54,827,407. 55,846,683.
Total -- -- -- -- -- --
00 00
Overdue loan of the long term loans due within 1 year:
Inapplicable
Description of long-term loan due within 1 year
Inapplicable
131
FIYTA Holdings Ltd. 2013 Semi-Annual Report
(3) Bonds payable due within a year
Inapplicable
(4) Long term payables due within a year
Inapplicable
41. Other current liabilities
In CNY
Items Ending book balance Opening book balance
Accrued expenses 7,315,030.73 10,088,432.90
Total 7,315,030.73 10,088,432.90
Note to other current liabilities
42.Long term loan
(1) Classification of Long Term Loans
In CNY
Items End of the Reporting Period Beginning of the reporting period
Collateral Loans 0.00 0.00
Pledged loan 7,331,286.38 7,838,020.45
Secured loan 94,632,407.00 96,391,683.00
Credit loan 0.00 0.00
Less: Long-term loan due within 1 year -54,827,407.00 -55,846,683.00
Total 47,136,286.38 48,383,020.45
Note to classification of long term loans
(2)Top Five Lenders of the Long Term Loans
In CNY
End of the Reporting Beginning of the
Loan Loan Period reporting period
Loan Interest
starting expiry Currency Amount in Amount in Amount in Amount in
suppliers rate (%)
date date foreign function foreign function
currency currency currency currency
Bank of October 8, October 20,000,00 15,922,00 20,000,00 16,218,00
HK$ 3.25%
China 2012 7, 2014 0.00 0.00 0.00 0.00
132
FIYTA Holdings Ltd. 2013 Semi-Annual Report
(Hong
Kong)
Limited
Bank of
China
November November 30,000,00 23,883,00 30,000,00 24,327,00
(Hong HK$ 3.25%
23, 2012 23, 2014 0.00 0.00 0.00 0.00
Kong)
Limited
November Septembe Swiss 975,000.0 6,410,527 1,000,000 6,821,900
UBS 3%
1, 2012 r 1, 2022 Franc 0 .50 .00 .00
China
Constructi
on Bank October October 1,156,586 920,758.8 1,253,077 1,016,120
HK$ 4.25%
(Asia) 31, 2010 31, 2022 .96 8 .38 .45
Corporatio
n Limited
47,136,28 48,383,02
Total -- -- -- -- -- --
6.38 0.45
Note to the long term loans: For the long term loans whose overdue loan has realized formation of extension, it is
necessary to specify the conditions, principal, interest, predicted repayment arrangement, etc. of the extension.
43. Bonds payable
In CNY
Interest Interest
Accrued Interest
payable payable
interest paid in
Bond Par Issuing Amount at at end of Ending
Term in the the
name value date issued beginnin the balance
reporting reporting
g reporting
period period
period
5 years
(attache
FIYTA d with
HOLDIN investors
GS LTD ’
2012 February buy-back 400,000, 6,720,00 6,720,00 400,000,
100.00 0.00 0.00
COMPA 27, 2013 option, 000.00 0.00 0.00 000.00
NY the
BOND issuer’s
redempti
on option
and
133
FIYTA Holdings Ltd. 2013 Semi-Annual Report
adjusting
up the
par
interest
rate
option in
the 3rd
year)
Note to the bonds payable, including the conditions and time of conversion of the convertible company bonds into shares
The 33rd meeting of the Sixth Board of Directors held on June 19, 2012 reviewed and approved the Proposal on Issuing
Company Bonds, etc., according to which the Company planned to issued company bonds with amount not exceeding
CNY 400 million and the term not exceeding 5 years (with 5 years inclusive). The proceeds would be used for substituting
bank loan and replenishing the working capital. On September 9, 2012, approved by China Securities Regulatory
Commission with Document ZHENG JIAN XU KE [2012] No. 1209, the Company was permitted to issue company bonds
with amount not exceeding CNY 400 milion. The Company issued totally CNY 400 million of bonds in the current period.
After deduction of the issuing costs, the new proceeds raised therefrom amounted to CNY 396.9 million, which was
remitted to the bank account designated by the Company on March 5, 2013. RSM China CPAs, the CPAs appointed by the
Company respectively issued the capital verification reports ZHONG RUI YUE HUA YAN ZI [2013] No. 0053, ZHONG RUI
YUE HUA YAN ZI [2013] No. 0054 and ZHONG RUI YUE HUA YAN ZI [2013] No. 0055 for the frozen funds for
subscription of the on-line issued bonds, the frozen fund for subscription of the off-line placement and the proceeds
actually raised. Approved by Shenzhen Stock Exchange with Document SHEN ZHENG SHANG [2013] No. 99, the bonds
were listed for trading with both SZSE centralized bidding system and the comprehensive agreement based trading
platform with the abbreviation the securities “12 YA DA ZHAI” and security code of “112152”. For the detail, refer to
“Announcement on Issuing Company Bond 2013-003” disclosed on February 25, 2013.
44. Long term accounts payable
Inapplicable
45. Special accounts payable
Inapplicable
46. Other non-current liabilities
In CNY
Items Ending book balance Opening book balance
Deferred income
Fund for financing the construction of the
600,000.00 600,000.00
Company’s technology center (Note①)
134
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Reward from the 13th Patent Award (Note②) 350,000.00 350,000.00
Special fund for Development of Strategical
320,000.00 320,000.00
New Industries in Shenzhen (Note③)
Special fund for development of cultural
780,000.00
creative industry (Note④)
Special fund for cooperation with provincial
and ministrial academic and research 236,000.00
institutions (Note④)
Total 2,050,000.00 1,506,000.00
Note to other non-current liabilities, including various government subsidies in connection with the assets, and revenues
obtained in the reporting period and the amount at the end of the reporting period
Note①: According to Document SHEN JING MAO FA [2002] No. 93 promulgated by Bureau of Economic and Trade of
Shenzhen Municipality, Bureau of Finance of Shenzhen Municipality and Administration of Local Taxation of Shenzhen
Municipality. As the Company’s technology center has been expertised as an Enterprise Technology Center of Shenzhen
and therefore it has obtained a supporting fund amounting to CNY 3,000,000 for construction of the enterprise technology
center. The project was completed in early 2009, and the amount amortized every year is CNY 600,000.00 and the
accumulative amount amortized so far is CNY 2,400,000.00.Ended June 30, 2013, the balance of the fund was CNY
600,000.00.
Note ② : It is the reward of the patent award obtained from the Circular of Intellectual Property Office of Guangdong
Province on Appropriation of Incentive Fund from the 13th China Patent Award YUE ZHI GUI [2012] No. 157;
Note ③ : It is a special fund for development of strategical new industries according to the Circular on the Fourth
Supporting Plan of 2012 for the Special Fund for Development of Strategical New Industries in Shenzhen jointly
promulgated by Devlopment and Innovation Commission of Shenzhen Municipality, Science, Industry, Trade and
Information Techology Commission of Shenzhen Municipality, Science and Technology Innovation Commission of
Shenzhen Municipality and Finance Commission of Shenzhen Municipality Document SHEN FA GAI [2012] No. 1241;
Note ④ : It is a special fund for watch project according to the Measures for Administration of Special Fund for
Development of Cultural Innovation Industry in Shenzhen;
Note⑤: It is a special fund for cooperation with provincial and ministrial academic and research institutions according to
YUE CAI JIAO [2009] No. 138.
47. Share Capital
In CNY
Beginning Increase/ Decrease (+ / -) resulting from the change in the reporting End of the
of the period Reporting
135
FIYTA Holdings Ltd. 2013 Semi-Annual Report
reporting Shares Period
period Bonus converted
New issuing Others Sub-total
shares from
reserve
Total 392,767,87 392,767,87
0.00 0.00 0.00 0.00 0.00
Shares 0.00 0.00
Note to change of the capital share: In case there existed capital increase or decrease in the reporting period, it is
necessary to disclose the name of the CPAs engaged in the capital verification and the number of the capital verification
report. For a company limited by shares whose operation term was less than entire 3 years, it was necessary to specify its
net assets in the year prior to incorporation. The overall change of a company limited by shares is the capital verification
which should be specified at the time of incorporation.
48. Treasury stock
Inapplicable
49. Special reserve
Inapplicable
50. Capital reserve
In CNY
Beginning of the Increase in the Decrease in the End of the
Items
reporting period reporting period reporting period Reporting Period
Capital premium (capital
511,014,504.13 0.00 0.00 511,014,504.13
stock premium)
Other capital reserve 14,492,448.65 0.00 0.00 14,492,448.65
Total 525,506,952.78 0.00 0.00 525,506,952.78
Note to capital reserve
51. Surplus reserve
In CNY
Beginning of the Increase in the Decrease in the End of the
Items
reporting period reporting period reporting period Reporting Period
Statutory surplus reserve 86,602,786.61 0.00 0.00 86,602,786.61
Discretionary surplus
61,984,894.00 0.00 0.00 61,984,894.00
reserve
Reserve fund 0.00 0.00 0.00 0.00
Enterprise development 0.00 0.00 0.00 0.00
136
FIYTA Holdings Ltd. 2013 Semi-Annual Report
fund
Total 148,587,680.61 0.00 0.00 148,587,680.61
Note to the surplus reserve: in case of conversion of surplus reserve into share capital, making up losses or distribution of
dividend, the relevant resolutions should be specified.
52. General risk reserve
Inapplicable
53. Retained earnings
In CNY
Provision or distribution
Items Amount
proportions
Before adjustment: Retained earnings at the
386,984,676.78 --
end of the previous year
Adjustment: Total of the retained earnings at
0.00 --
year beginning (increase +, decrease _)
Retained earnings at year beginning after
386,984,676.78 --
adjustment
Plus: Net profit attributable to the parent
69,097,419.87 --
company’s owner in the report period
Retained earnings at year end 456,082,096.65 --
Adjustment of retained earnings at year beginning:
1) As retroactive adjustment was made according to the Enterprise Accounting Standards and its relevant new provisions,
the retained earnings at year beginning was influenced by CNY 0.00.
2) Due to change of the accounting policy, the retained earnings at year beginning was influenced by CNY 0.00.
3) Due to correction of material accounting errors, the retained earnings at year beginning was influenced by CNY 0.00.
4) Due to change of the consolidation scope caused by the same control, the retained earnings at year beginning was
influenced by CNY-16,139,115.49.
5} Total of other adjustments influencing the retained earnings at year beginning: CNY 0.00.
Note to the retained earngings: For an IPO company, should the accumulated profit before IPO be shared by new and old
shareholders through resolution of the shareholders’ general meeting, it should be specified; should the accumulated
profit before IPO be distributed and exclusively shared by the old shareholders before IPO through resolution of the
137
FIYTA Holdings Ltd. 2013 Semi-Annual Report
shareholders’ general meeting, the Company should disclose explicitly the amount of the profit in the dividend shared by
the medium and old shareholders.
54. Operating revenues and costs
(1) Operating revenues and Costs
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Revenue from principal business 1,493,827,814.22 1,474,150,751.69
Revenue from other business 14,525,952.64 9,605,059.67
Operating costs 970,869,666.64 987,034,886.89
(2) Principal Businesses Based on Sectors
In CNY
Amount incurred in the reporting period Amount incurred in the previous period
Sectors
Operating revenue Operating costs Operating revenue Operating costs
Commerce 1,133,437,634.12 847,739,810.91 1,173,543,916.34 874,237,801.34
Industry 321,175,473.86 110,740,242.66 265,901,475.21 99,165,431.92
Property lease 39,214,706.24 6,743,346.45 34,705,360.14 10,394,436.10
Total 1,493,827,814.22 965,223,400.02 1,474,150,751.69 983,797,669.36
(3) Principal Businesses Based on Products
In CNY
Amount incurred in the reporting period Amount incurred in the previous period
Description of Products
Operating revenue Operating costs Operating revenue Operating costs
Sales of famous brand
1,133,437,634.12 847,739,810.91 1,173,543,916.34 874,237,801.34
watches
Sales of FIYTA watches 321,175,473.86 110,740,242.66 265,901,475.21 99,165,431.92
Property lease 39,214,706.24 6,743,346.45 34,705,360.14 10,394,436.10
Total 1,493,827,814.22 965,223,400.02 1,474,150,751.69 983,797,669.36
(4) Principal Businesses Based on Regions
In CNY
138
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Amount incurred in the reporting period Amount incurred in the previous period
Regions
Operating revenue Operating costs Operating revenue Operating costs
Northeast China 130,071,970.42 95,160,184.44 139,682,464.71 103,378,488.35
North China 290,411,310.16 218,987,802.61 292,156,396.04 222,903,895.50
Northwest China 270,095,282.36 199,716,950.98 331,183,745.81 247,305,324.50
Southwest China 137,226,801.31 98,473,472.78 110,244,661.48 80,191,581.27
East China 178,523,905.64 125,133,429.43 182,965,167.64 130,002,925.44
South China 487,498,544.33 227,751,559.78 417,918,316.01 200,015,454.30
Total 1,493,827,814.22 965,223,400.02 1,474,150,751.69 983,797,669.36
(5) Sales Income from Top Five Customers
In CNY
Proportion in the Company’s total sales income
Description of the Customers Revenue from principal business
(%)
Yongan General Merchandise
39,691,970.91 2.63%
Co., Ltd.
Xi’an Kaiyuan Shopping Mall
32,137,246.82 2.13%
Co., Ltd.
Hunan Pinghetang Industrial
28,650,353.27 1.9%
Co., Ltd.
Jiangxi Baisheng
Zhongshancheng General 26,112,178.48 1.73%
Merchandise Co., Ltd.
Xidan Department Store of
Beijing Capital Retailing 23,571,767.40 1.56%
Group Co., Ltd.
Total 150,163,516.88 9.95%
Note to the operation revenues
55. Income from Contract Projects
Inapplicable
56. Business Taxes and Surcharges
In CNY
Amount incurred in Amount incurred in
Items Taxation Rate
the reporting period the previous period
139
FIYTA Holdings Ltd. 2013 Semi-Annual Report
The Company and its subsidiaries
located in PRC Mainland pay
taxable consumption tax at 20%
Consumption tax 450,766.66 390,919.01
of the tax base for the high grade
watches imported or produced by
themselves.
The Company and its subsidiaries
located in PRC Mainland
calculate and pay taxes for the
Business tax 2,644,269.59 2,186,160.79 income from housing lease,
supply labor services and royalty
of the demised assets at the rate
of 5%.
The Company and its subsidiaries
located in Shenzhen calculate
and pay their urban maintenance
and construction tax at 1% of the
turnover tax actually paid before
Urban maintenance and
3,566,290.79 3,385,114.47 December 1, 2010 and 7% of the
construction tax
turnover tax actually paid
commencing from December 1,
2010; the subsidiaries outside
Shenzhen calculate and pay the
same at 7%.
The Company and its subsidiaries
located in PRC Mainland
calculate and pay education
surcharge at 3% of the turnover
tax; according to the Circular of
the General Office of Shenzhen
Municipal People’s Government
on Printing and Issuing the
Education surcharge 2,399,990.73 1,780,203.75
Provisional Measures for
Administration of Collection of
Local Education Surcharge in
Shenzhen, they pay the local
education surcharge at 2% of the
turnover tax actually paid
commencing from January 1,
2011.
Others 537,501.80 591,285.49
Total 9,598,819.57 8,333,683.51 --
Note to business taxes and surcharges
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
57. Sales costs
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Wages 95,425,585.46 89,022,232.97
Long-term expenses to be
40,071,228.64 21,960,900.61
apportioned
Rental 36,106,141.39 33,639,633.73
Market promotion 34,348,587.79 28,801,364.71
Shopping mall expenses 21,704,181.71 15,273,730.20
Advertisement 21,675,500.79 18,557,304.14
Labor insurance 14,991,352.99 12,372,578.54
Exhibition 8,487,347.93 2,880,436.15
Packing 6,188,388.83 4,125,184.20
Water and electricity 6,048,382.80 5,675,553.22
Others 30,289,173.53 28,238,074.48
Total 315,335,871.86 260,546,992.95
58. Administrative expenses
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Wages 41,385,108.98 38,674,782.96
R & D costs 6,620,694.71 6,326,203.26
Labor insurance 4,514,446.62 3,530,804.12
Depreciation 3,738,162.30 2,731,036.28
Business travel 2,778,620.61 2,822,898.43
Trade union budget 1,910,645.98 1,927,730.36
Meeting 1,834,405.81 1,866,812.03
Business entertainment 1,689,207.04 1,739,635.27
Administrative expenses 1,593,464.97 1,532,395.30
Welfares 1,458,323.04 1,335,900.04
Others 10,700,903.68 25,346,945.31
141
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Total 78,223,983.74 87,835,143.36
59. Financial Expenses
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Interest payment 43,059,131.02 51,135,088.70
Less: interest income -556,505.59 -782,438.91
Exchange losses -1,302,644.23 329,694.61
Financial service charge 6,073,587.41 8,918,864.86
Plus: Collateral charge for loans
Others 549,840.19 2,661.78
Total 47,823,408.80 59,603,871.04
60. Income from change of fair value
Inapplicable
61. Return on Investment
(1) Statement of Return on Investment
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Return on long term equity investment based
108,440.73 191,373.86
on equity method
Total 108,440.73 191,373.86
(2) Income from long term equity investment calculated based on the cost method
Inapplicable
(3) Income from long term equity investment calculated based on the equity method
In CNY
Amount incurred in Cause of increase/decrease in
Amount incurred in
Investees the previous the report period over the
the reporting period
period previous period
Shanghai Watch Industry Co., 108,440.73 191,373.86
142
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Ltd.
Total 108,440.73 191,373.86 --
Note to the return on investment: Should there be material restriction in remitting back of the return on investment, it is
necessary to explain the case. Should there be no such material restriction, it is necessary to specify the case also.
62. Loss from impairment of assets
In CNY
Amount incurred in the Amount incurred in the previous
Items
reporting period period
I. Loss from bad debt -42,202.72 -4,298.70
II. Loss from price falling of inventories 5,000,000.00
Total 4,957,797.28 -4,298.70
63. Non-operating income
(1) About non-operating income
In CNY
Amount recorded in the
Amount incurred in Amount incurred in the
Items non-recurring gain/loss
the reporting period previous period
in the reporting period
Total gains from disposal of
467,975.18 2,464.55 467,975.18
non-current asset
Including: Income from disposal of
467,975.18 2,464.55 467,975.18
fixed assets
Income from disposal of
0.00 0.00 0.00
intangible assets
Income from reorganization of
0.00 0.00 0.00
liabilities
Benefit from non-monetary assets
0.00 0.00 0.00
exchange
Acceptane of donation 0.00 0.00 0.00
Government subsidies 795,493.22 567,500.00 795,493.22
Others 297,969.80 1,271,678.10 297,969.80
Total 1,561,438.20 1,841,642.65 1,561,438.20
143
FIYTA Holdings Ltd. 2013 Semi-Annual Report
(2) Statement of Government Subsidies
In CNY
Amount incurred in Amount incurred in
Items Note:
the reporting period the previous period
Science & Technology Awards
100,000.00
of Guangdong Province
Financial support from
implementation of
112,500.00 467,500.00
standardization strategy (Note
①)
Commissioner project budget
of the special fund for the
academic & research
236,000.00
cooperation with the provincial
and ministrial institutions (Note
②)
Governmental allowances
from Shenzhen Watch & Clock
Association for BASEL 60,000.00
WORLD 2011 Watches (Note
③)
Incentive fund for speeding up
development of backbone
370,000.00
enterprises in
Shenzhen(Note④)
Market promotion fund for
medium and small enterprises 16,993.22
(Note⑤)
Total 795,493.22 567,500.00 --
Note to non-operating income
Note①: They are the governmental allowances received for implementation of standardized stragetical financing projects
in 2012 in Bao’an District according to the Official Opinion of Bao’an District on Implementation of Promoting Industry
Transformation and Upgrading and Speeding Up and Change of Economic Development Approaches, SHEN BAO FU
[2012] No. 21, the Provisional Measures of Bao’an District for Management of the Financial Special Purpose Funds at
District Level, etc.
Note ② : It is the special fund for the academic & research cooperation with the provincial and ministrial institutions
according to the Document YUE CAI JIAO [2009] No. 138; the amount of the reward already recognized as in compliance
with the relevant conditions in the current year was CNY 236,000.00, including the amount distributed in 2012 being CNY
136,000.00 and the amount distributed in 2011 being CNY 100,000.00.
144
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Note ③ : It is the allowance for the booth cost for BASEL WORLD 2011 Watches from Shenzhen Watch & Clock
Association;
Note ④ : It is the Incentive fund for speeding up development of backbone enterprises in Shenzhen received in 2011
according to the Some Mesures for Optmizing Governmental Services and Promoting Industrial Development, Document
SHEN FU (2008) No. 149 and the Financial Incentive Measures of Shenzhen Municipality for Speeding up Development
of Backbones, Document SHEN CAI JIN (2010) No. 97.
Note⑤: It is the special fund for market promotion of medium and small enterprises received by the Company.
64. Non-operating expenses
In CNY
Amount recorded in
Amount incurred in the Amount incurred in the non-recurring
Items
reporting period the previous period gain/loss in the
reporting period
Total loss from disposal of the non-current
27,315.73 11,895.85 27,315.73
assets
Including: Loss from disposal of fixed assets 27,315.73 11,895.85 27,315.73
External donation 180,000.00 90,000.00 180,000.00
Others 38,870.48 3,532.37 38,870.48
Total 246,186.21 105,428.22 246,186.21
Note to non-operating expenses
65. Income tax expenses
In CNY
Amount incurred in the Amount incurred in the
Items
reporting period previous period
The income tax in the report period calculated
17,674,422.82 22,438,602.06
according to the tax law and the relevant provisions.
Adjustment of deferred income tax -3,919,237.05 -5,264,777.74
Total 13,755,185.77 17,173,824.32
66. Process of calculation of basic earnings per share and diluted earnings per share
(1) Statement of the amounts of the basic earnings per share (basice EPS) and diluted earnings per share (diluted EPS) in
different periods
145
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Profit in the reporting period Amount incurred in the report year Amount incurred in the previous year
Basic EPS Diluted EPS Basic EPS Diluted EPS
Net profit attributable to the
Company’s shareholders of ordinary 0.176 0.176 0.166 0.166
shares
Net profit attributable to the
Company’s shareholders of ordinary
0.173 0.173 0.168 0.168
shares less non-recurring gain and
loss
(2) Process of calculation of basic earnings per share and diluted earnings per share
In the report period, there existed no potential ordinary shares with dilution in the Company. Therefore, the diluted earning
per share is equal to the basic earning per share.
1. In calculating the basic EPS, the current net profit attributable to shareholders of ordinary shares is:
Items Amount incurred in the report year Amount incurred in the previous year
Net profit attributable to the
69,097,419.87 65,159,296.28
shareholders of ordinary shares
Including: Net profit attributable to
69,097,419.87 65,159,296.28
continuous operation
Net profit attributable to the
Company’s shareholders of ordinary
68,078,232.08 66,121,488.44
shares less non-recurring gain and
loss
Including: Net profit attributable to
68,078,232.08 66,121,488.44
continuous operation
2. In calculating the basic EPS, the denominator is the weighted average of the outstanding ordinary shares and the
calculation process is as follows:
Items Amount incurred in the report year Amount incurred in the previous year
Number of outstanding ordinary
392,767,870.00 392,767,870.00
shares at year beginning
Plus: Number of shares of non-public
- -
designated issuing
Weighted number of ordinary
- -
shares issued in the reporting year
Weighted number of outstanding
392,767,870.00 392,767,870.00
ordinary shares at year end
Note: The calculation formula and the calculation process for the relevant data are presented according to the Enterprise
Accounting Standards No. 34 – Earnings per Share and the Rules for the Compilation and Submission of Information
Disclosure by Companies that Offer Securities to the Public No. 15 – Calculation and Disclosure of ROE and EPS (2010
146
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Revision).
67. Other comprehensive income
In CNY
Amount incurred in the Amount incurred in the
Items
reporting period previous period
4. Converted difference in Foreign Currency Statements -3,563,383.18 -1,485,490.34
Sub-total -3,563,383.18 -1,485,490.34
Total -3,563,383.18 -1,485,490.34
Note to other comprehensive income
Inapplicable
68. Note to the Cash Flow Statement
(1) Other operation related cash received
In CNY
Items Amount
Commodity promotion 9,511,276.95
Government subsidies 1,374,453.22
Deposit 1,556,281.30
Interest income 556,382.18
Reserves 12,685.51
Others 5,377,324.74
Total 18,388,403.90
Note to the other operation related cash received
Inapplicable
(2) Other operation related cash paid
In CNY
Items Amount
Rental 36,914,074.34
Market promotion 21,896,492.58
Shopping mall expenses 21,704,181.71
147
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Advertisement 19,035,500.79
Water and electricity 6,265,476.45
Packing 6,188,388.83
Business travel 5,421,967.64
R & D costs 5,100,694.71
Administrative expenses 4,874,609.70
Transportation 3,579,355.55
Business entertainment 3,460,778.19
Exhibition 3,307,347.93
Insurance premium 1,659,980.40
Meeting 1,588,134.52
Post and telecommunications 1,500,876.36
Remuneration to agent(s) engaged by the Company 1,367,471.91
Automobile expenses 1,063,064.29
Others 2,294,992.72
Total 147,223,388.62
Note to other operation related cash paid
Inapplicable
(3) Other investment related cash received
Inapplicable
(4) Other investment related cash paid
Inapplicable
(5) Other fund-raising related cash received
Inapplicable
(6) Other cash paid for fund raising activities
In CNY
Items Amount
Bond issue expenses 502,986.00
Total 502,986.00
Note to other fund raising related cash paid
148
FIYTA Holdings Ltd. 2013 Semi-Annual Report
69. Supplemental information of the cash flow statement
(1) Supplemental information of the cash flow statement
In CNY
Amount in the reporting
Supplemental Information Amount in the previous period
period
1. Net cash flows arising from adjustment of net
-- --
profit into operating activities:
Net profit 69,212,725.92 65,159,296.28
Plus: Provisions for impairment of assets 4,957,797.28 -4,298.70
Depreciation of fixed assets, oil and gas assets,
16,007,258.88 16,155,014.09
production based biological asset
Amortization of intangible assets 701,205.67 668,682.58
Long-term expenses to be apportioned 45,529,420.78 29,139,237.95
Loss (income is stated with “-“) from disposal of fixed
-440,659.45 9,431.30
assets, intangible assets and other long term assets
Loss on scrapping of fixed assets (profit is
0.00 0.00
stated with “-“)
Loss from change of fair value (income is stated with
0.00 0.00
“-“)
Financial expenses (income is stated with “-“) 43,059,131.02 51,135,088.70
Investment loss (income is stated with “-“) -108,440.73 -191,373.86
Decrease of deferred income tax asset (increase is
-1,547,836.39 -5,264,777.74
stated with “-“)
Increase of deferred income tax asset (decrease is
0.00 -5,264,777.74
stated with “-“)
Decrease of inventories (increase is stated with “-“) -8,000,799.50 -157,959,058.31
Decrease of operative items receivable (increase
-25,258,705.56 -76,634,180.15
is stated with “-“)
Increase of operative items receivable (decrease is
-10,116,297.35 -15,560,265.76
stated with “-“)
Net cash flow arising from operating activities 133,994,800.57 -93,347,203.62
2. Significant investment and fund-raising activities
-- --
not involved in cash income and expenses:
3. Net change of cash and cash equivalents: -- --
Ending cash balance 95,490,125.02 210,307,884.08
Less: Opening cash balance 140,420,994.71 179,972,430.02
149
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Plus: Ending cash equivalent balance 0.00 0.00
Less: Opening cash equivalent balance 0.00 0.00
Net increase in cash and cash equivalents -44,930,869.69 30,335,454.06
(2) Information concerning acquisition or disposal of subsidiaries or other operating units in the
reporting period
In CNY
Amount incurred in the Amount incurred in the
Supplemental Information
reporting period previous period
I. Information concerning acquisition of subsidiaries
-- --
and other operating units:
II. Information concerning disposal of subsidiaries
-- --
and other operating units:
(3) Composition of cash and cash equivalents
In CNY
Beginning of the reporting
Items End of the Reporting Period
period
I. Cash 95,490,125.02 140,420,994.71
Including: Cash in stock 563,441.88 538,810.69
Bank deposit available for payment at any time 94,921,162.28 139,868,866.49
Other monetary fund available for payment at
5,520.86 13,317.53
any time
Due from central bank available for payment 0.00 0.00
Due from banks 0.00 0.00
Call loan to banks 0.00 0.00
II. Cash equivalent 0.00 0.00
Including: bond investment due within three months 0.00 0.00
III. Balance of cash and cash equivalent at the end
95,490,125.02 140,420,994.71
of the report period
Note to supplemental information to the cash flow statement
70. Note to items in the statement of change in owner’s equity
Inapplicable
150
FIYTA Holdings Ltd. 2013 Semi-Annual Report
VIII. Accounting treatment of asset securitization business
1. Description of arrangement of the major asset securitization businesses, their accounting
treatment and bankruptcy isolation articles
Inapplicable
2. About the special purpose principal with no control power but substantially undertaking the
Company’s risks
Inapplicable
IX. Related parties and related transactions
1. About the Parent Company
Proporti Voting
on of power
the proporti The
Compa on of Compa
Place of Legal Registe ny’s the ny’s Organiz
Relatio Enterpri Business
Parent Registr represe red shares parent eventua ation
nship se type nature
ation ntative: capital held by compan l Code
the y over controll
parent the er
compan Compa
y (%) ny (%)
Investing
and
initiating
entities
(separate
applicatio China
CATIC
n is to be National
Shenzhe Controllin
Wu submitted Aviation
n g Company Shenzhe 111063 279351
Guangqu for a 41.49% 41.49% Industry
Holdings sharehol limited n 1996 22-9
an specific Group
Limited der
project); Corporati
domestic on
commerc
e, supply
and sales
of goods
and
151
FIYTA Holdings Ltd. 2013 Semi-Annual Report
materials
(excludin
g the
goods for
exclusive
sale,
under
special
control
and
monopoli
zed
goods);
import
and
export
(excludin
g the
goods
forbidden
by law,
administr
ative
rules and
regulatio
ns,
decision
of the
State
Council;
the
restrictive
goods is
not
allowed
for
operation
until
permit is
granted)
Note to the Company’s Parent:
AVIC International Holding Corporation (CATIC Shenzhen Holdings Limited) , the Company’s controlling shareholder
completed the change with the administration for industry and commerce for its non-public issuing of securities in 2012
and asets reorganization. Before the change, AVIC International Shenzhen Company Limited held 58.77% of AVIC
152
FIYTA Holdings Ltd. 2013 Semi-Annual Report
International’s equity, and the balance of the equity was public shares; after the change, AVIC International Shenzhen
Company Limited held 39.37% of AVIC International’s equity and the balance of the equity was public shares. Therefore,
the Company’s eventual controller is Aviation Industry Corporation of China.
2. About the Subsidiaries
Full Shareholdi
Place of Legal Proportion
Names of Subsidiary Enterprise Business Registered ng Organizati
Registratio representa of voting
Subsidiari type type nature capital proportion on Code
n tive: power (%)
es (%)
Shenzhen
Harmony
Xu
World Controlled Limited 60000000 27931393
Shenzhen Dongshen Commerce 100% 100%
Watches subsidiary liability 0(RMB) 5
g
Center
Co., Ltd.
Shenzhen
FIYTA
Sophisticat
Xu
ed Controlled Limited Manufactu 10000000( 71521080
Shenzhen Dongshen 100% 100%
Timepiece subsidiary liability re RMB) 2
g
s
Manufactu
re Co., Ltd.
Shenzhen
World
Controlled Limited 2800000( 19223622
Watches Shenzhen Fang Juan Commerce 50% 50%
subsidiary liability RMB) 8
Center
Co., Ltd.
FIYTA
(Hong Controlled Limited Hong 65060000
- Commerce 100% 100% 37954781
Kong) subsidiary liability Kong （HKD）
Limited
Beijing
Hengliand
Controlled Limited 30000000( 77546687
a Beijing Fang Juan Commerce 100% 100%
subsidiary liability RMB) 7
Timepiece
s Co., Ltd.
Shenzhen Xu
Controlled Limited Manufactu 10000000( 69396758
FIYTA Shenzhen Dongshen 100% 100%
subsidiary liability re RMB) X
Technolog g
153
FIYTA Holdings Ltd. 2013 Semi-Annual Report
y
Developm
ent Co.,
Ltd.
Shenzhen
Xu
Symphony Controlled Limited 5000000( 69710895
Shenzhen Dongshen Commerce 100% 100%
Trading subsidiary liability RMB) 0
g
Co., Ltd.
Emile
Chouriet Controlled Limited Lu 50000000( 55031281
Shenzhen Commerce 100% 100%
(Shenzhen subsidiary liability Bingqiang RMB) 8
) Co., Ltd.
FIYTA Xu
Controlled Limited 50000000( 57476869-
Sales Co., Shenzhen Dongshen Commerce 100% 100%
subsidiary liability RMB) 2
Ltd. g
Liaoning
Hengdarui
Controlled Limited 51000000( 56755181-
Commerce Shenyang Lu Wanjun Commerce 100% 100%
subsidiary liability RMB) 5
& Trade
Co., Ltd.
3. Joint Ventures and Associates
Proportion
Proportion of the
of the Company’
Place of Legal
Enterprise Business Registered shares s voting Relationsh Organizati
Investees Registratio representa
type Nature capital held by the power in ip on Code
n tive:
Company the
(%) investee
(%)
I. Joint venture
II. Associate
Shanghai
Watch Limited Dong Manufactu 15350000 13465765
Shanghai 25% 25% Associate
Industry liability Guozhang re （RMB） 7
Co., Ltd.
4. The Company’s other related parties
Other related parties Relationship with the Company Organization Code
154
FIYTA Holdings Ltd. 2013 Semi-Annual Report
CATIC Property under the control of the same party 19219400-5
Shenzhen CATIC Building
under the control of the same party 743201073
Technology Co., Ltd.
Rainbow Supermarket under the control of the same party 618842912
Shennan Circuit Co., Ltd. under the control of the same party 192195761
Shenzhen CATIC Monitor
under the control of the same party 689407061
Technology Co., Ltd.
CATIC Real Estate under the control of the same party 279340845
Shenzhen Makway Cable TV
under the control of the same party 618810902
Equipment Co., Ltd.
CATIC Securities Co., Ltd. under the control of the same party 741986153
Xi’an Tianyue Hotel Co., Ltd. under the control of the same party 76197033-5
Shenzhen CATIC Nanguang Elevator
under the control of the same party 192350741
Engineering Co., Ltd.
Shenzhen CATIC City Property
under the control of the same party 676667833
Development Co., Ltd.
Shenzhen CATIC City Development
under the control of the same party 192194005
Co., Ltd.
CATIC Land Development Co., Ltd. under the control of the same party 661015568
Shenzhen CATIC Guanlan Real
under the control of the same party 763495945
Estate Development Co., Ltd.
Shenzhen CATIC Changtai
under the control of the same party 732047808
Investment Development Co., Ltd.
Shenzhen CATIC Construction
under the control of the same party 192309191
Supervision Co., Ltd.
Shenzhen CATIC Jiufang Assets
under the control of the same party 580064616
Management Co., Ltd.
CATIC Trust Co. under the control of the same party 158265930
Ganzhou CATIC Real Estate
under the control of the same party 664794739
Development Co., Ltd.
Shenzhen CATIC Decoration Design
under the control of the same party 192268123
Engineering Co., Ltd.
Shenzhen CATIC City Investment
under the control of the same party 279340845
Co., Ltd.
Chengdu CATIC Real Estate
under the control of the same party 66047931X
Development Co., Ltd.
Chengdu CATIC Real Estate Co.,
under the control of the same party 202384639
Ltd.
155
FIYTA Holdings Ltd. 2013 Semi-Annual Report
CATIC Electronic Measuring
under the control of the same party 745016111
Instruments Co., Ltd
Shenzhen CATIC Theme Real Estate
under the control of the same party 618811913
Co., Ltd.
Note to the Company’s other related parties
5. Related transactions
(1) Statement of Commodities Purchased and Labor Services Received
In CNY
Amount incurred in the Amount incurred in the
reporting period previous period
Propor Propor
Pricing of
tion in tion in
related
Description of the the
transactions
Related Parties Related amoun amoun
and decision
Transactions Amount t of the Amount t of the
making
simlar simlar
procedures
transa transa
ctions ctions
(%) (%)
Rainbow Shopping mall Negotiated
1,373,419.14 5.36% 2,939,606.14 7.86%
Supermarket expenses price
Property Negotiated
CATIC Property 569,185.84 100% 1,605,837.42 100%
management fee price
Shenzhen
CATIC Negotiated 12.54
Training fees 142,437.90 46,600.00 1.81%
Enterprise Group price %
Training Center
Statement of Sales of Goods and Supply of Labor Services
In CNY
Description of Pricing of Amount incurred in the Amount incurred in the
Related Parties
Related related reporting period previous period
156
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Transactions transactions Propor Propor
and decision tion in tion in
making the the
procedures amoun amoun
Amount t of the Amount t of the
simlar simlar
transa transa
ctions ctions
(%) (%)
AVIC Sales of products Market price 1,328,029.06 0.09% 3,886,999.48 0.26%
Rainbow
Sales of products Market price 38,432,907.68 2.57% 36,158,164.63 2.45%
Supermarket
Shennan Circuit
Sales of materials Market price 7,357,604.78 0.49% 790,736.23 0.05%
Co., Ltd.
(2) Related trust/contract
Inapplicable
(3) Related Leases
Statement of leases
In CNY
Rental
Lease Basis for income
Lease starting
Lessor Lessees Leased asset termination determing the recognized in
date
date lease income the reporting
period
FIYTA CATIC Real Negotiated
Office space May 16, 2012 May 15, 2015 754,416.00
Holdings Ltd Estate price
Shenzhen
Makway
FIYTA February 1, Negotiated
Cable TV Office space May 31, 2013 233,285.00
Holdings Ltd 2012 price
Equipment
Co., Ltd.
FIYTA CATIC October 1, September Negotiated
Office space 1,330,272.00
Holdings Ltd Property 2012 30, 2015 price
CATIC
FIYTA February 1, Negotiated
Securities, Office space May 31, 2015 511,200.00
Holdings Ltd 2012 price
Co., Ltd.
FIYTA Shenzhen Office space October 1, September Negotiated 11,160.00
157
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Holdings Ltd CATIC City 2012 30, 2015 price
Property
Development
Co., Ltd.
Shenzhen
FIYTA CATIC City September September Negotiated
Office space 11,160.00
Holdings Ltd Development 16, 2012 15, 2013 price
Co., Ltd.
Shenzhen
CATIC
FIYTA Guanlan Real Negotiated
Office space May 16, 2012 May 15, 2015 44,640.00
Holdings Ltd Estate price
Development
Co., Ltd.
Shenzhen
CATIC
FIYTA Changtai Negotiated
Office space May 16, 2012 May 15, 2015 642,816.00
Holdings Ltd Investment price
Development
Co., Ltd.
FIYTA Xi’an Tianyue September 1, Negotiated
Office space July 31, 2012 1,750,000.00
Holdings Ltd Hotel Co., Ltd. 2009 price
FIYTA Rainbow Negotiated
Office space May 1, 2013 April 30, 2016 191,720.00
Holdings Ltd Supermarket price
Shenzhen
FIYTA CATIC City Negotiated
Office space May 16, 2012 May 15, 2015 45,012.00
Holdings Ltd Investment price
Co., Ltd.
Shenzhen
CATIC
FIYTA Jiufang Negotiated
Office space July 19, 2011 June 30, 2013 196,248.00
Holdings Ltd Assets price
Management
Co., Ltd.
Shenzhen
FIYTA CATIC Theme Negotiated
Office space May 16, 2012 May 15, 2013 472,812.00
Holdings Ltd Real Estate price
Co., Ltd.
Statement of Tenancies
In CNY
Lessor Lessees Leased asset Lease starting Lease Basis for Rent
158
FIYTA Holdings Ltd. 2013 Semi-Annual Report
date termination determing the recognized in
date rent the reporting
period
Ganzhou
CATIC Real
August 31, August 30, Negotiated
Estate HARMONY Shop 467,550.32
2012 2017 price
Development
Co., Ltd.
Chengdu
CATIC Real
October 28, October 27, Negotiated
Estate HARMONY Shop 183,054.98
2011 2016 price
Development
Co., Ltd.
Description of related leases
(4) Related guarantee
In CNY
Has the
Amount in Guarantee Expiry of
Guarantor Guarantee guarantee been
guarantee starting date guarantee
implemented?
The Company HARMONY 100,000,000.00 July 23, 2012 July 22, 2013 No
The Company HARMONY 80,000,000.00 August 27, 2012 August 26, 2013 No
January 21, January 21,
The Company HARMONY 28,787,629.42 No
2013 2014
FIYTA Hong September 6, September 5,
The Company 27,413,703.50 No
Kong Limited 2011 2013
FIYTA Hong
The Company 27,413,703.50 August 10, 2011 August 10, 2013 No
Kong Limited
FIYTA Hong
The Company 15,922,000.00 October 5, 2012 October 4, 2014 No
Kong Limited
FIYTA Hong November 10, November 9,
The Company 23,883,000.00 No
Kong Limited 2012 2014
AVIC September 3, September 2,
The Company 80,000,000.00 No
International 2012 2013
AVIC September 3, September 2,
The Company 70,000,000.00 No
International 2012 2013
AVIC September 3, September 2,
The Company 70,000,000.00 No
International 2012 2013
AVIC The Company 60,000,000.00 September 3, September 2, No
159
FIYTA Holdings Ltd. 2013 Semi-Annual Report
International 2012 2013
AVIC September 3, September 2,
The Company 60,000,000.00 No
International 2012 2013
AVIC November 23, November 22,
The Company 20,000,000.00 No
International 2012 2013
AVIC October 26, October 25,
The Company 50,000,000.00 No
International 2012 2013
AVIC November 27, November 26,
The Company 70,000,000.00 No
International 2012 2013
AVIC
The Company 50,000,000.00 June 4, 2013 June 3, 2014 No
International
AVIC October 22, October 21,
The Company 100,000,000.00 No
International 2012 2013
AVIC November 22, September 25,
The Company 50,000,000.00 No
International 2012 2013
AVIC
The Company 30,000,000.00 August 1, 2012 August 1, 2013 No
International
Note to the related guarantees
(5) Lending and Borrowing with Related Parties
Inapplicable
(6) Assets assignment and debt restructuring transactions with the related parties
Inapplicable
(7) Other related transactions
Inapplicable
6. Receivables from and Payables to the Related Parties
Accounts receivable from the related parties
In CNY
End of the reporting period Beginning of the reporting period
Items Related Parties Bad debt Bad debt
Book balance Book balance
reserve reserve
Rainbow
Accounts receivable 2,905,953.94 145,297.70 799,263.70 39,963.19
Supermarket
160
FIYTA Holdings Ltd. 2013 Semi-Annual Report
AVIC 1,234,321.00 61,716.05 676,811.00 33,840.55
Shenzhen CATIC
Enterprise Group 1,764.00 88.20 1,764.00 176.40
Training Center
Shennan Circuit
1,095,614.93 54,780.75 1,831,638.46 91,581.92
Co., Ltd.
CATIC Electronic
Measuring
103,700.00 5,185.00 0.00 0.00
Instruments Co.,
Ltd
Chengdu CATIC
0.00 4,060.00 203.00
Real Estate
Total 5,341,353.87 267,067.69 3,313,537.16 165,765.06
Shennan Circuit
Notes receivable 5,500,000.00 0.00 2,000,000.00 0.00
Co., Ltd.
Total 5,500,000.00 0.00 2,000,000.00 0.00
Other receivables CATIC Property 13,500.00 675.00 0.00 0.00
Rainbow
150,801.60 7,540.08 119,401.60 5,970.08
Supermarket
Shenzhen CATIC
Enterprise Group 150,000.00 7,500.00 150,000.00 7,500.00
Training Center
Chengdu CATIC
Real Estate
100,536.00 5,026.80 100,536.00 5,026.80
Development Co.,
Ltd.
Ganzhou CATIC
Real Estate
122,665.60 6,133.28 122,665.60 6,133.28
Development Co.,
Ltd.
Total 537,503.20 26,875.16 492,603.20 24,630.16
Accounts payable to the related parties
In CNY
Amount at the end of the Amount at the beginning
Items Related Parties
reporting period of the reporting period
Shenzhen CATIC
Other payables Building Technology Co., 8,227.10 8,227.10
Ltd.
161
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Shenzhen CATIC
Nanguang Elevator 3,354.90 3,354.90
Engineering Co., Ltd.
Shenzhen CATIC City
37,700.00 37,700.00
Investment Co., Ltd.
CATIC Securities, Co.,
170,400.00 170,400.00
Ltd.
CATIC Real Estate 424,800.00 424,800.00
Shenzhen CATIC
Changtai Investment 221,712.00 221,712.00
Development Co., Ltd.
Shenzhen CATIC Jiufang
Assets Management Co., 60,606.00
Ltd.
Rainbow Supermarket 60,000.00 60,000.00
Shenzhen Makway Cable
64,602.00
TV Equipment Co., Ltd.
Total 986,800.00 990,796.00
X. Payment of Shares
Inapplicable
XI. Contingent Events
Inapplicable
XII. Commitments
1. Important Commitments
Operation lease commitments: The irrevocable operation lease contracts executed between the Group and external
parties by the balance sheet day are as follows: In CNY
Items End of the year
Minimum rent payment for the irrevocable operation lease: -
Within a year 21,706,958.25
1 – 2 years 28,367,176.21
2 – 3 years 19,179,007.17
Over 3 years 14,830,000.00
Total 84,083,141.63
162
FIYTA Holdings Ltd. 2013 Semi-Annual Report
2. Implementation of the commitments in the previous period(s)
Inapplicable
XIII: Sequential Events after the Balance Sheet Day
Inapplicable
XIV: Other important matters
Inapplicable
XV. Notes to the principal items on the parent company’s financial statements
1. Accounts receivable
(1) Accounts receivable
In CNY
End of the Reporting Period Beginning of the reporting period
Book balance Bad debt reserve Book balance Bad debt reserve
Categories Pro
Prop Prop Prop
port
Amount Amount ortio Amount ortio Amount ortio
ion
n (%) n (%) n (%)
(%)
Accounts receivable for which bad debt reserve has been provided based on the combination
99.
Grouping of the 239,387,67 239,386,39 99.3
38 0.00 0% 0.00 0%
designated accounts 0.05 0.85 8%
%
Grouping based on 1,485,751.2 0.6 34.9 1,491,713.4 0.62 19.1
544,717.12 286,124.69
the accounting age 4 2% 7% 4 % 8%
240,873,42 100 0.23 240,878,10 100 0.12
Subtotal of grouping 544,717.12 286,124.69
1.29 % % 4.29 % %
240,873,42 240,878,10
Total -- 544,717.12 -- -- 286,124.69 --
1.29 4.29
Note to the categories of accounts receivable
Accounts receivable with significant single amount and with reserve for bad debt provided on single item basis.
Inapplicable
163
FIYTA Holdings Ltd. 2013 Semi-Annual Report
In grouping, accounts receivable with the reserve for bad debt provided based on the age analysis method.
In CNY
End of the Reporting Period Beginning of the reporting period
Book balance Book balance
Age Prop Bad debt Prop
Bad debt reserve
Amount ortio reserve Amount ortio
n (%) n (%)
Within a year
Including: -- -- -- -- -- --
Subtotal
4.34
within a 0.00 0% 0.00 64,884.69 3,244.23
%
year
1 to 2 4.37 68.4
64,884.69 6,488.47 1,020,960.69 102,096.07
years % 4%
2 to 3 68.7 25.3
1,020,960.69 306,288.21 377,394.06 152,310.39
years 2% %
Over 3 26.9 1.91
399,905.86 231,940.44 28,474.00 28,474.00
years 2% %
Total 1,485,751.24 -- 544,717.12 1,491,713.44 -- 286,124.69
In grouping, accounts receivable with the reserve for bad debt provided based on the balance faction method.
Inapplicable
In grouping, accounts receivable with the reserve for bad debt provided based on other method
In CNY
Description Book balance Bad debt reserve
Grouping of the designated
239,387,670.05 0.00
accounts
Total 239,387,670.05 0.00
Accounts receivable with insignificant single amount but with reserve for bad debt provided on single item basis at the end
of the reporting period
Inapplicable
(2) Accounts receivable reversed or recovered in the reporting period
Inapplicable
164
FIYTA Holdings Ltd. 2013 Semi-Annual Report
(3) The accounts receivable actually written-off in the reporting period
Inapplicable
(4) The account receivable from the shareholder holding over 5% (including 5%) of the
Company’s voting shares in the reporting period
Inapplicable
(5) Nature or description of the other receivables with bigger amount
Inapplicable
(6) Top five debtors of the accounts receivable
In CNY
Proportion in the total
Relationship with the
Organization Names Amount Year accounts receivable
Company
(%)
FIYTA Sales Co.,
Subsidiary 239,384,824.81 Within a year 99.38%
Ltd.
Erdos Shopping
Non-related party 574,442.40 2 to 3 years 0.24%
Center
Distribution
Non-related party 216,994.22 Over 3 years 0.09%
Voltimage inc
Jiamusi Department
Store Co., Ltd. of Non-related party 148,772.75 2 to 3 years 0.06%
Dashang Group
Mudanjiang
Department Store
Non-related party 86,221.20 2 to 3 years 0.04%
Co., Ltd. of Dashang
Group
Group -- 240,411,255.38 -- 99.81%
(7) Accounts due from related parties
In CNY
Relationship with the Proportion in the total
Organization Names Amount
Company accounts receivable (%)
FIYTA Sales Co., Ltd. Subsidiary 239,384,824.81 99.38%
AVIC The Company’s eventual 134,335.00 0.06%
165
FIYTA Holdings Ltd. 2013 Semi-Annual Report
controller
Beijing Henglianda Watch
Subsidiary 12,827.74 0.01%
Co., Ltd.
Shenzhen CATIC
Controlled by the same
Enterprise Group Training 1,764.00 0%
parent company
Center
Kunming HARMONY
Subsidiary 1,279.20 0%
Golden Eagle Shop
Total -- 239,535,030.75 99.45%
(8) Amount of the accounts receivable transferred not in compliance with the conditions of
terminating confirmation is CNY 0.00.
(9) For securitization on the assets with accounts receivable as the underlying asset, it is
necessary to summarize the relevant transaction arrangement
Inapplicable
2. Other receivables
(1) Other receivables
In CNY
End of the Reporting Period Beginning of the reporting period
Book balance Bad debt reserve Book balance Bad debt reserve
Categories Pro Pro Pro Pro
porti porti porti porti
Amount Amount Amount Amount
on on on on
(%) (%) (%) (%)
Other receivables with
significant single amount and
0.00 0% 0.00 0% 0.00 0% 0.00 0%
provision of bad debt reserve
on individual basis
Other receivables for which bad debt reserve has been provided based on the grouping
Grouping of the designated 99.9 99.8
1,085,494,656.61 0.00 0% 877,980,927.88 0.00 0%
accounts 4% 7%
Grouping based on the 0.06 13.1 0.13
699,306.00 92,092.25 1,167,527.00 140,077.13 12%
accounting age % 7% %
100 0.01 100 0.02
Subtotal of grouping 1,086,193,962.61 92,092.25 879,148,454.88 140,077.13
% % % %
Other receivables with 0.00 0% 0.00 0% 0.00 0% 0.00
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
insignificant single amount
and provision of bad debt
reserve on individual basis
Total 1,086,193,962.61 -- 92,092.25 -- 879,148,454.88 -- 140,077.13 --
Note to categories of other receivables
Other receivables with significant single amount and provision of bad debt reserve on individual basis at the end of the
reporting period
Inapplicable
In grouping, other receivables for which the bad debt reserve is provided based on the age analysis
In CNY
End of the Reporting Period Beginning of the reporting period
Book balance Book balance
Age Prop Prop
Bad debt reserve Bad debt reserve
Amount ortio Amount ortio
n (%) n (%)
Within a year
Including: -- -- -- -- -- --
Subtotal 66.2 45.2
463,150.00 22,502.50 528,550.00 26,427.50
within a year 4% 7%
6.51 39.3
1 to 2 years 45,542.57 4,554.25 459,474.67 45,947.47
% 5%
21.6 9.44
2 to 3 years 151,356.10 45,406.83 110,245.00 33,073.50
4% %
5.61 5.93
Over 3 years 39,257.33 19,628.67 69,257.33 34,628.66
% %
Total 699,306.00 -- 92,092.25 1,167,527.00 -- 140,077.13
In grouping, other account receivable for which reserve for bad debt is provided based on balance percentage
Inapplicable
In grouping, other receivable for which the bad debt reserve is provided based on other method:
In CNY
Grouping Description Book Balance Bad debt reserve
Grouping of the designated accounts 1,085,494,656.61 0.00
Total 1,085,494,656.61 0.00
Other receivables with insignificant single amount and provision of bad debt reserve on individual basis at the end of the
167
FIYTA Holdings Ltd. 2013 Semi-Annual Report
reporting period
Inapplicable
(2) Other receivables reversed or recovered in the reporting period
Inapplicable
(3) Other receivables actually written-off in the reporting period
Inapplicable
(4) Other receivables from the shareholder holding 5% (including 5%) of the Company’s voting
shares in the reporting period
Inapplicable
(5) Nature or description of the other payables with bigger amount
Inapplicable
(6) Top Five Debtors of the Other Receivables
In CNY
Proportion in the total
Relationship with the
Company names Amount Years of the other
Company
receivables (%)
HARMONY Subsidiary 913,848,212.29 Within 1 year 84.13%
FIYTA Sales Co.,
Subsidiary 49,959,976.28 Within 1 year 4.6%
Ltd.
Emile Chouriet
Subsidiary 41,487,341.14 Within 1 year 3.82%
(Shenzhen) Co., Ltd.
Shenzhen FIYTA
Sophisticated
Timepieces Subsidiary 37,206,124.11 Within 1 year 3.43%
Manufacture Co.,
Ltd.
Shenzhen
Symphony Trading Subsidiary 28,834,414.69 Within 1 year 2.65%
Co., Ltd.
Total -- 1,071,336,068.51 -- 98.63%
(7) Other receivables from related parties
In CNY
168
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Relationship with the Proportion in the total of the
Company names Amount
Company other receivables (%)
HARMONY Subsidiary 913,848,212.29 84.13%
FIYTA Sales Co., Ltd. Subsidiary 49,959,976.28 4.6%
Emile Chouriet
Subsidiary 41,487,341.14 3.82%
(Shenzhen) Co., Ltd.
Shenzhen FIYTA
Sophisticated Timepieces Subsidiary 37,206,124.11 3.43%
Manufacture Co., Ltd.
Shenzhen Symphony
Subsidiary 28,834,414.69 2.65%
Trading Co., Ltd.
Shenzhen FIYTA
Technology Development Subsidiary 12,744,896.07 1.17%
Co., Ltd.
Fiyta (Hong Kong) Ltd. Subsidiary 1,147,471.00 0.11%
Shenzhen CATIC
Controlled by the same
Enterprise Group Training 150,000.00 0.01%
parent company
Center
Total -- 1,085,378,435.58 99.92%
(8)Amount of the other receivables transferred not in compliance with the conditions of
terminating confirmation is CNY 0.00.
(9) For securitization on the assets of other receivables, it is necessary to summarize the relevant
transaction arrangement
Inapplicable
3. Long-term equity investment
In CNY
Note to
Percent Voting Provisio
inconsis
age of power n Cash
tence of
Accounti Initial Increase equity in percent Impairm reserve dividend
Investee Opening Ending percent
ng investm /Decrea the age in ent provided in the
s balance balance age of
method ent cost se investee the reserve in the reportin
equity
(%) investee reportin g period
in the
(%) g period
investee
169
FIYTA Holdings Ltd. 2013 Semi-Annual Report
s with
Voting
power
percent
age
Shenzh
en
Harmon
Cost 601,307 601,307 601,307 Inapplic
y World 0.00 100% 100% 0.00 0.00 0.00
method ,200.00 ,200.00 ,200.00 able
Watches
Center
Co., Ltd.
Shenzh
en
World Cost 1,400,0 1,400,0 1,400,0 Inapplic
0.00 50% 50% 0.00 0.00 0.00
Watches method 00.00 00.00 00.00 able
Center
Co., Ltd.
Harbin
HARMO
NY Cost 125,000 125,000 125,000 Inapplic
0.00 100% 100% 0.00 0.00 0.00
World method .00 .00 .00 able
Watches
Co., Ltd.
FIYTA
(Hong Cost 55,367, 55,367, 55,367, Inapplic
0.00 100% 100% 0.00 0.00 0.00
Kong) method 520.00 520.00 520.00 able
Limited
Xi’an
Tangche
Cost 85,000. 85,000. 85,000. Inapplic
ng Joint 0.00 0.1% 0.1% 0.00 0.00 0.00
method 00 00 00 able
Stock
Co., Ltd.
Shenzh
en
Culture Cost 300,000 300,000 300,000 Inapplic 300,000
0.00 15% 15% 0.00 0.00
Commu method .00 .00 .00 able .00
nication
Co., Ltd.
Shenzh
Cost 5,000,0 5,000,0 5,000,0 Inapplic
en 0.00 100% 100% 0.00 0.00 0.00
method 00.00 00.00 00.00 able
Sympho
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
ny
Trading
Co., Ltd.
Shenzh
en
FIYTA
Technol Cost 10,000, 10,000, 10,000, Inapplic
0.00 100% 100% 0.00 0.00 0.00
ogy method 000.00 000.00 000.00 able
Develop
ment
Co., Ltd.
Shenzh
en
FIYTA
Sophisti
cated Cost 9,000,0 9,000,0 9,000,0 Inapplic
0.00 100% 100% 0.00 0.00
Timepie method 00.00 00.00 00.00 able
ces
Manufac
ture Co.,
Ltd.
FIYTA
Cost 50,000, 50,000, 50,000, Inapplic
Sales 0.00 100% 100% 0.00 0.00 0.00
method 000.00 000.00 000.00 able
Co., Ltd.
Shangh
ai Watch Equity 39,916, 41,648, 108,440 41,757, Inapplic
25% 25% 0.00 0.00 0.00
Industry method 500.00 741.79 .73 182.52 able
Co., Ltd.
772,501 774,233 108,440 774,341 300,000
Total -- -- -- -- 0.00 0.00
,220.00 ,461.79 .73 ,902.52 .00
Note to investment in long term equity
4. Operating Revenue and Costs
(1) Operating Revenue
In CNY
Items Amount incurred in the reporting period Amount incurred in the previous period
Revenue from principal
44,722,706.24 78,724,691.50
business
Revenue from other
50,379.57 4,135,571.06
business
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
Total 44,773,085.81 82,860,262.56
Operating costs 6,806,000.42 46,268,068.51
(2) Principal Businesses Based on Sectors
In CNY
Amount incurred in the reporting period Amount incurred in the previous period
Sectors
Operating revenue Operating costs Operating revenue Operating costs
Industry 0.00 0.00 44,019,331.36 31,755,058.40
Property lease 44,722,706.24 6,743,346.45 34,705,360.14 10,394,436.10
Total 44,722,706.24 6,743,346.45 78,724,691.50 42,149,494.50
(3) Principal Businesses Based on Products
In CNY
Amount incurred in the reporting period Amount incurred in the previous period
Description of Products
Operating revenue Operating costs Operating revenue Operating costs
Sales of FIYTA watches 0.00 0.00 44,019,331.36 31,755,058.40
Property lease 44,722,706.24 6,743,346.45 34,705,360.14 10,394,436.10
Total 44,722,706.24 6,743,346.45 78,724,691.50 42,149,494.50
(4) Principal Business (based on regions)
In CNY
Amount incurred in the reporting period Amount incurred in the previous period
Regions
Operating revenue Operating costs Operating revenue Operating costs
Northeast China 0.00 0.00 0.00 0.00
North China 0.00 0.00 266,952.19 174,799.51
Northwest China 1,750,000.00 2,114,283.80 1,750,000.00 4,735,434.50
Southwest China 0.00 0.00 358,974.36 235,055.36
East China 0.00 0.00 0.00 0.00
South China 42,972,706.24 4,629,062.65 76,348,764.95 37,004,205.13
Total 44,722,706.24 6,743,346.45 78,724,691.50 42,149,494.50
(5) Operating revenue from the company’s top five customers
In CNY
Description of the Customers Total operating revenue Proportion in the
172
FIYTA Holdings Ltd. 2013 Semi-Annual Report
Company’s total
sales income (%)
Shenzhen Tencent Computer System Co., Ltd. 13,891,387.50 31.03%
Oracle Software Research and Development (Shenzhen)
2,409,780.00 5.38%
Co., Ltd.
Shenzhen CATIC Hotel Management Co., Ltd. 1,750,000.00 3.91%
Bowei Technology (Shenzhen) Co., Ltd. 1,477,888.02 3.3%
Weisheng Electronics (Shenzhen) Co., Ltd. 1,432,697.10 3.2%
Total 20,961,752.62 46.82%
Note to the operating revenue
5. Return on investment
(1) Details of return on investment
In CNY
Amount incurred in the Amount incurred in the
Items
reporting period previous period
Return on long term equity investment based on cost
74,971,478.14 75,960,140.02
method
Return on long term equity investment based on
108,440.73 191,373.89
equity method
Total 75,079,918.87 76,151,513.91
(2) Return on long term equity investment based on cost method
In CNY
Amount incurred in Amount incurred Cause of increase/decrease in
Investees the reporting in the previous the report period over the
period period previous period
Retained earnings in the same
FIYTA Technology 10,037,848.87 0.00 period of the previous year
Decrease of the net profit of the
Manufacture Co. 64,933,629.27 75,960,140.05
investee in 2012 over 2011
Total 74,971,478.14 75,960,140.05 --
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
(3) Return on long term equity investment based on equity method
In CNY
Amount incurred in Amount incurred Cause of increase/decrease in
Investees the reporting in the previous the report period over the
period period previous period
Decrease of the profit of the
investee in the reporting period
Shanghai Watch Industry 108,440.73 191,373.89
over the same period of the
previous year
Total 108,440.73 191,373.89 --
Note to the return on investment
6. Supplementary information of the cash flow statement
In CNY
Amount in the reporting Amount in the previous
Supplemental Information
period period
1. Net cash flows arising from adjustment of net profit into
-- --
operating activities:
Net profit 82,763,509.21 69,728,132.23
Plus: Provisions for impairment of assets 210,607.55 -4,298.70
Depreciation of fixed assets, oil and gas assets, production
7,480,004.66 9,429,450.96
based biological asset
Amortization of intangible assets 695,545.69 663,022.60
Long-term expenses to be apportioned 4,662,349.88 5,271,263.77
Loss (income is stated with “-“) from disposal of fixed assets,
0.00 -451,657.57
intangible assets and other long term assets
Financial expenses (income is stated with “-“) 0.00 12,769,119.71
Investment loss (income is stated with “-“) -75,079,918.87 -76,151,513.91
Decrease of deferred income tax asset (increase is stated
69,848.11 0.00
with “-“)
Increase of deferred income tax asset (decrease is stated
0.00 0.00
with “-“)
Decrease of inventories (increase is stated with “-“) 62,653.97 32,293,251.47
Decrease of operative items receivable (increase is stated
-176,854,871.80 -332,833,427.40
with “-“)
Increase of operative items receivable (decrease is stated
-5,136,726.22 57,899,112.07
with “-“)
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FIYTA Holdings Ltd. 2013 Semi-Annual Report
Net cash flow arising from operating activities -161,126,997.82 -221,387,544.77
2. Significant investment and fund-raising activities not
-- --
involved in cash income and expenses:
3. Net change of cash and cash equivalents: -- --
Ending cash balance 31,841,346.45 71,657,500.90
Less: Opening cash balance 51,372,778.02 49,327,161.12
Net increase in cash and cash equivalents -19,531,431.57 22,330,339.78
7. Assets and liabilities recorded based on the assessed value under counterpurchase
Inapplicable
XVI. Supplementary information
1. Statement of Non-recurring Profit and Loss in the Reporting Period
In CNY
Items Amount Note:
Income from disposal of the
idle office space amounting
Loss from disposal of non-current assets, including the to CNY 427,651.20 and gain
440,659.45
part written-off with the provision for impairment of assets and loss from disposal of
other fixed assets in
Chengdu in the current year.
Government subsidy recognized in current gains and
losses (excluding those closely related to the Company’s For the detail, refer to Note
795,493.22
business and granted under the state’s policies according 63 (2) government subsidy
to certain quota of amount or volume)
Income and expenses from the business other than the Other various non-operating
79,099.32
above items revenue and expenditure
Less: Amount affected by the income tax 290,388.46
68 Station Co.,Ltd., one of
the Company’s subsidiaries,
received government
susbsidy amounting to CNY
Amount affected by minority equity (after tax) 5,675.74
16,993.22 in the current
year. The amount affecting
the minority equity after
deduction of the income tax.
Total 1,019,187.79 --
If the Company defines the non-recurring gain and loss items as defined by the Explanatory Announcement No.1 on
Information Disclosure for Companies Offering their Securities to the Public - Non-recurring Gains and Losses and the
175
FIYTA Holdings Ltd. 2013 Semi-Annual Report
non-recurring gain and loss items taken as examples in the Explanatory Announcement No.1 on
Information Disclosure for Companies Offering their Securities to the Public as recurring times in definition, please explain
the reason.
Inapplicable
2. Discrepancy in accounting data between IAS and CAS
Inapplicable
3. Return on Equity (ROE) and Earnings per Share (EPS)
In CNY
Net ROE, weighted EPS
Profit in the reporting period
average (%) Basic EPS Diluted EPS
Net profit attributable to the Company’s
4.68% 0.176 0.176
shareholders of ordinary shares
Net profit attributable to the Company’s
shareholders of ordinary shares less the 4.61% 0.173 0.173
non-recurring gains/losses
4. Notes to the Abnormalities in the Major Items of the Company’s Accounting Statements and
the Causes
1. Monetarty fund amounting to CNY 95,490,125.02, decreased by CNY 44,930,869.69 over year beginning, with a drop
rate of 32%, was mainly due to that as a result of control of the procurement expenditure and optimization of stock
structure in the reporting period, the net cash flow in from operation activities amounted to CNY133,994,800.57; payment
for purchase of fixed assets and refurbishment of the terminal sales outlets amounted to CNY 58,489,580.79; and
repayment for bank loans amounted to CNY 94,275,174.38 and payment for bank interest amounted to CNY
26,169,618.98.
2. Accounts receivable amounting to CNY 352,990,365.07, increased by CNY 43,873,090.76 over the year beginning with
a growth rate of 14.19%, was mainly due to increase of sales and failure in settlement of partial inter-period accounts.
3. Decrease of other current assets by CNY 23,348,415.49 over the year beginning with a drop rate of 45.74% was mainly
due to decrease in purchasing inventories in the reporting period and decrease of the offsettable input VAT by CNY
21,339,249.11 over the year beginning.
4. Short term loans amounting to CNY 918,787,629.42, decreased by CNY 491,012,370.58 over the year beginning was
mainly due to that as the Comnpany issued company bonds, part of the raised capital was used for repaying short term
loans.
5. Interest payable at the end of the reporting period amounting to CNY 24,044,496.13, increased by CNY 16,668,098.57
176
FIYTA Holdings Ltd. 2013 Semi-Annual Report
over the year beginning with growth rate of 225.97%, was mainly due to that the financial management based entrusted
loan from Bank of China amounting to CNY 390 million was due for repaying the principal and interest and the Company
made provision for the interest in the reporting period.
6. The bonds payable at the end of the reporting period amounting to CNY 400,000,000.00 while zero at year beginning
was due to that the Company issued CNY 400 million of company bonds in the reporting period. Refer to Note 43 – bonds
payable.
7. The sales costs amounting to CNY 315,335,871.86, increased by CNY 54,788,878.91 over the same period of the
previous year with growth rate of 21.03% was mainly due to increase in wages, rent, market promotion fee, shopping mall
expenses, etc. in the Company. Refer to the details of Note 57 – Sales costs.
8. Financial costs amounting to CNY 47,823,408.80, decreased by CNY 11,780,462.24 over the same period of the
previous year with a drop rate of 19.76% was mainly due to that the interest rate for the bank loans repaid by the
Company and that of the company bonds issued in the reporting period was quite low and thus the interest payment
decreased.
177
FIYTA Holdings Ltd. 2013
Semi-Annual Report
Section 9 List of Documents Available for Inspection
I. Accounting Statements signed by and under the seal of the legal representative, chief accountant and
accounting supervisor
II. Originals of all the Company’s documents and manuscripts of announcements disclosed in Securities
Times and Hong Kong Commercial Daily as designated by China Securities Regulatory Commission.
178
