FIYTA Holdings Ltd. 2014 Semi-Annual Report
FIYTA Holdings Ltd.
2014 Semi-Annual Report
August, 2014
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FIYTA Holdings Ltd. 2014 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 following directors, all the other directors personally attended the
Board Meeting for reviewing the Semi-annual Report
Names Titles Cause(s) Proxies
Huang Yongfeng Director Business travel Lai Weixuan
Liu Aiyi Director Business travel Zhong Sijun
Zhang Shunwen Independent Business travel Wang Yan
director
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. Hu Xinglong, the chief financial officer and 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.
This Semi-annual report is prepared in both Chinese and English. Should there be any difference
in understanding between the two, the Chinese version shall prevail.
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
Table of Contents
2014 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
Section 7 About Preferred Shares
Chapter 8 Directors, Supervisors and Senior Executives
Section 9 Financial Report
Section 10 List of Documents Available for Inspection
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
Definitions
Terms to be defined Refers to Definition
This Company, the Company or
Refers to FIYTA Holdings Ltd.
Fiyta
AVIC International Holdings Refers to AVIC International Holdings Limited
Shenzhen Harmony World Watches Center Co.,
HARMONY Refers to
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. 2014 Semi-Annual Report
Section 2 Company Profile
I. Company Profile
Abbreviation of the
FIYTA A, FIYTA B Stock Code 000026 and 200026
stock
Stock Exchange Listed
Shenzhen Stock Exchange
with
Company Name in
飞亚达（集团）股份有限公司
Chinese
Abbreviation of
company name in 飞亚达公司
Chinese (if any)
Company Name in
English (if any) FIYTA HOLDINGS LTD.
Abbreviation of
Company Name in FIYTA
English (if any)
Legal Representative of
Lai Weixuan
the Company
II. Liaison Person and Way of Communication
Secretary of the Board Securities Affairs Representative
Names Chen Libin Zhang Yong
th
20 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
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 2013 Annual Report
2. Information Disclosure and Place of Regular Reports Prepared for Inquiry
There is no change in the name of the newspapers designated for disclosing the information, internet
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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 2013 Annual Report
3. Changes of the Registration Data
There is no change in such registration data as the registration date and place, the registration number
of the business licence, tax registration number, organization code, etc. of the Company during the
reporting period. For more information, refer to 2013 Annual Report.
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FIYTA Holdings Ltd. 2014 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?
□ Yes √ No
Increase/decrease in
the reporting period
Same Period of the
Reporting period vs the corresponding
Previous Year
period of the previous
year (%)
Revenues in CNY 1,642,614,790.97 1,508,353,766.86 8.90%
Net profit attributable to the
88,283,873.10 69,097,419.87 27.77%
Company’s shareholders, in CNY
Net profit attributable to the
Company’s shareholders less the
86,173,160.01 68,078,232.08 26.58%
non-recurring gains/losses, in
CNY
Net cash flows arising from
137,998,679.39 133,994,800.57 2.99%
operating activities, in CNY
Basic earning per share
0.225 0.176 27.84%
(CNY/share)
Diluted earning per share
0.225 0.176 27.84%
(CNY/share)
Net assets-income ratio ,
5.58% 4.68% 0.90%
weighted average, (%)
Increase/decrease of
End of the reporting End of the previous the report period vs
period year the same period of the
previous year (%)
Total assets, in CNY 3,689,550,705.59 3,558,702,591.28 3.68%
Net assets attributable to the
1,587,697,962.33 1,536,434,684.56 3.34%
Company’s shareholder (CNY)
II. Difference in the Accounting Data based on the Accounting Standards Outside
Mainland China
1. Differences in net profit and net assets in the financial report disclosed according to both the
intarnational accounting standards (IAS) and the Chinese accounting standards (CAS).
Inapplicable
2. Differences in net profit and net assets in the financial report disclosed according to both the
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
accounting standards outside the Mainland Chinae and the Chinese accounting standards (CAS).
Inapplicable
Inapplicable
III. Non-recurring gain/loss items and the amount involved
In CNY
Items Amount Note:
It refers to the gain/loss
Loss from disposal of non-current assets, including
from disposal of the office
the part written-off with the provision for impairment 6,708.57
fixed assets in the current
of assets
period
Government subsidy recognized in current gains
For the detail, refer to
and losses (excluding those closely related to the
Note 63 (2) government
Company’s business and granted under the state’s 1,726,500.00
subsidy in the current
policies according to certain quota of amount or
period.
volume)
Other various
Income and expenses from the business other than
906,133.12 non-operating revenue
the above items
and expenditures
Less: Amount affected by the income tax 528,628.60
Total 2,110,713.09 --
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. 2014 Semi-Annual Report
Section 4 Report of the Board of Directors
I. Overview
During the reporting period, the domestic economic followed the decelerated growth state, the Company
was confronted with bigger pressure from the market environment in its principal business especially
from the high-end consumption market. Under the circumstance that the macro-market environment was
hardly determined, the Company, focusing on the annual strategic theme of “deepening the values,
improving the efficiency and enhancing integration”, rose to the challenge, forged ahead with
determination, kept laying the foundation of various basic work, exerted itself on improving the output of
individual shops and efficiency of asset operation. During the reporting period, the Company was
improving its overall earning power, the asset structure was continuously optimized and the operational
cash flow achieved continuous improvement. The Company realized sales income amounting to
CNY1,642,614,790.97, an 8.90% year-on-year growth over the previous year, realized net profit
amounting to CNY 88,283,873.10, a 27.77% year-on-year growth over the previous year; the net cash
flow arising from the operation activities amounted to CNY 137,998,679.39.
During the reporting period, the Company still took the brand strategy as the guidance, carried forward
integration and upgrading of the key value links by means of the business model of “product + channel”;
took “burning the passion, improving the capacity, returning to the base and striving to create efficiency”
with the work theme with the Harmony World Watch as the key channel brand, focusing on BSC
+OPERATION, enhanced construction of the core competence and construction of Harmony Brand,
centering on the principal line of work – “improving the unit output and improving the efficiency”,
innovated the operation model, looking for opportunity in the adverse situation, realized sales income
amounting to CNY 1,164,509,801.05 with a 2.74% growth. With FIYTA as the Company’s key product,
the Company takes “focusing on per unit yield, development platform, enhancing teamwork and
improving efficiency” as the work core, promoted sales growth by various means, such as the theme
competition of “Soccer Hero Legend”, sales promotion during holidays and festivals, promotion of new
arrivals, etc.; enriched the categories of the existing channels by vigorously developing e-commerce,
enhancing support to distributors, continuously reinforcing overseas channel construction, developing
more brands, etc. and improved the quality of channels; steadily improved the gross profit rate level of
products by restructuring the products, raising the retail price of series products, and controlling the
product costs, and improved the brand awareness and reputation by means of news release of the new
product arrival, BASEL Watch Expo, SHENZHEN Watch Expo, the spokespersons’ promotion activities,
etc. During the reporting period, the Company kept quick growth in its FIYTA Watch Industry, realized
sales income amounting CNY 391,786,607.01, a 26.59% growth.
During the reporting period, the Company kept carrying forward in property management, construction of
Guangming watch production base and the innovation work in different management practices.
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
II. Analysis on the Principal Business
Changes of the major financial data on year-on-year basis
In CNY
Same period of the
Year-on-year
Reporting Period previous year Cause of change
increase/decrease
Operating revenue 1,642,614,790.97 1,508,353,766.86 8.90%
Operating costs 1,038,060,709.77 970,869,666.64 6.92%
Selling expenses 349,761,320.39 315,335,871.86 10.92%
Administrative
84,852,192.39 78,223,983.74 8.47%
expenses
Financial expenses 54,196,678.49 47,823,408.80 13.33%
Income tax
16,573,527.31 13,755,185.77 20.49%
expense
Income tax
11,886,999.88 9,629,287.15 23.45%
expenses
Investment in R & D 137,998,679.39 133,994,800.57 2.99%
Mainly referring to
the increase in
investment in the
Net cash flow
new watch
arising from -77,188,078.38 -57,808,318.28 33.52%
production base
operating activities
project at
Guangming New
Zone
Net cash flow
arising from
-8,915,791.60 -120,444,793.36 -92.60%
investment
activities
Net increase of
cash and cash 52,180,646.25 -44,930,869.69
equivalent
Great change has taken place in profit composition or profit sources in the reporting period
Inapplicable
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 operation plan in the reporting period the Company
disclosed previously
Inapplicable
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
III. Composition of Principal Businesses
In CNY
Increase/decr Increase/decr
Increase/decr
ease of ease of gross
ease of
principal profit rate
revenue in
Operating Operating Gross margin business cost over the
the same
revenue costs (%) over the same period
period of the
same period of the
previous year
of previous previous year
(%)
year (%) (%)
Sectors
1,164,509,80 879,130,610.
Commerce 24.51% 2.74% 3.70% -0.70%
1.05 80
420,802,528. 148,417,710.
Industry 64.73% 31.02% 34.02% -0.79%
52 07
42,837,767.1
Leasehold 6,368,580.17 85.13% 9.24% -5.56% 2.33%
7
Products
Sales of
1,164,509,80 879,130,610.
famous brand 24.51% 2.74% 3.70% -0.70%
1.05 80
watches
Sales of
391,786,607. 131,829,910.
FIYTA 66.35% 26.59% 26.32% 0.07%
01 71
watches
Property 42,837,767.1
6,368,580.17 85.13% 9.24% -5.56% 2.33%
leasehold 7
Precision 29,015,921.5 16,587,799.3
42.83% 148.59% 160.17% -2.54%
machining 1 6
Regions
Northeast 152,503,099. 106,837,154.
29.94% 17.25% 12.27% 3.10%
China 71 05
241,303,219. 174,784,558.
North China 27.57% -16.91% -20.19% 2.97%
12 99
Northwest 287,448,335. 206,860,118.
28.04% 6.42% 3.58% 1.98%
China 94 69
Southwest 164,673,874. 114,716,453.
30.34% 20.00% 16.49% 2.10%
China 58 05
219,417,606. 149,575,845.
East China 31.83% 22.91% 19.53% 1.92%
86 53
South China 562,803,960. 281,142,770. 50.05% 15.45% 23.44% -3.24%
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
53 73
IV. Analysis on Core Competitiveness
The Company’s core competitiveness is a collection of techniques and technologies which enable the
Company to provide the customers with specific value and is the competitiveness which a series of
products or services must rely on in process of taking a leading position. It consists of the ability of brand
building, ability of high quality services, ability of product innovation, ability of knowledgement
management and ability of management of strategic human resource.
During the reporting period, the Company achieved great success in construction of the platform of
science and technology and technology innovation. After over a decade’s unremitting efforts, the
Company’s technology center was successfully certified as a national enterprise technology center in
2013 relying on its outstanding achievement in construction of the innovation mechanism, construction
of the technology center platform, construction of the innovation environment and talent cultivation and
technology R & D and achievements, etc. The Company’s science & technology project was awarded
one second prize of the Award for Scientific and Technological Advancement of Guangdong Province;
its stereoscopic reading watch was honorably awarded the Red Dot Design Award; during the first half
year, the Company was authorized 3 patents for invention, 1 patent for utility models and 4 design
patents; took lead or participated in preparation or amendment of 6 national standards and totally issued
9 industrial standards.
V. Analysis on Investment Status
1. External Equity Investment
(1) External Investment
Inapplicable
(2) Holding of the Equipty in Financial Enterprises
Inapplicable
(3) Investment in Securities
Inapplicable
2. Entrusted Financing, Investment in Derivative Products and Entrusted Loan
(1) Entrusted Financing
Inapplicable
(2) Investment in Derivatives
Inapplicable
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
(3) Entrusted Loan
Inapplicable
3. Application of the Raised Capital
(1) General Application of the Raised Capital
In CNY 10,000
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
0
been changed in the reporting period
Total raised capital whose application has
0
been changed accumulatively
Proportion of the total raised capital whose
application has been changed 0.00%
accumulatively
Note to Application of the Raised Capital
rd
The Company held the 33 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. Up to now, the Company has used up
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
all the raised capital and no change has taken place in the application purpose of the raised capital.
(2) Promised Projects with Raised Capital
In CNY 10,000
Has
Amount Investmen Date when
Has the significant
Total accumulati t progress the project Has the
project Total Result change
Promised investment promised Amount vely by the end has predicted
been investmen realized in taken
projects and investment investmen invested in invested of the reached operation
changed t after the place in
with the over-raised t with the report up to the report the result
(including adjustmen reporting the
capital raised period end of the period predicted been
partial t (1) period feasibility
capital report (3) = applicable reached?
change) of the
period (2) (2)/(1) status
project?
Investment projects as committed
Repayment of bank loan No 30,000 30,000 30,000 30,000 100.00% 0 Yes No
Replenishing the
No 10,000 10,000 10,000 10,000 100.00% 0 Yes No
working capital.
Sub-total of investment
-- 40,000 40,000 40,000 40,000 -- -- 0 -- --
projects as committed
Investment with over-raised capital
Inapplicable
Sub-total of investment
-- 0 0 0 0 -- -- -- --
with over-raised capital
Total -- 40,000 40,000 40,000 40,000 -- -- 0 -- --
Amount of over-raised
capital, application and Inapplicable
progress of use
Change of the
implementation site of the
Inapplicable
projects invested with the
raised capital
Adjustment of the
implementation method
Inapplicable
of the projects invested
with the raised capital
About the initial
investment in the projects
planned to be invested Inapplicable
with the raised capital
and the replacement
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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
(3) Change of the Projects Invested with the Raised Capital
Inapplicable
(4) Projects Invested with the Raised Capital
Inapplicable
4. Analysis on Principal Subsidiaries and Mutual Shareholding Companies
Particulars about the Principal Subsidiaries and Mutual Shareholding Companies
In CNY
Leading Net assets Operating
Company Sectors Registered Total assets, Turnover in Net profit (in
Company type products and (CNY) profit (in
Names engaged in capital in CNY CNY CNY)
services CNY)
Mainly
engaged in
sales of
world
Shenzhen
famous
Harmony
brand watch,
World 600,000,000( 2,206,248,99 691,348,975. 1,202,401,13 9,776,619.
Subsidiary Retail including 8,185,892.09
Watches RMB) 0.27 92 1.71 14
purchase,
Center Co.,
sales and
Ltd.
maintenance
service of
timepieces
and parts
Sales and
repairing of
watches and
FIYTA Sales Subsidiary 50,000,000( 655,569,895. 62,017,094.2 389,459,088. 37,223,417
Retail spares and 26,455,502.46
Co., Ltd. RMB) 49 5 51 .08
parts and
sales of
jewelry and
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
ornments
Mainly
engaged in
production
and sales of
FIYTA
watches,
Shenzhen
including
FIYTA
productin
Sophisticate 10,000,000( 278,483,311. 78,342,853.4 215,400,134. 72,572,293
Subsidiary Manufacture and 62,388,478.94
d Timepieces RMB) 02 1 36 .63
maintenance
Manufacture
of clocks and
Co., Ltd.
watches, and
driving units,
spares and
parts,
sophisticated
timepieces
R & D,
production
and sales of
watches,
Shenzhen
production,
FIYTA
machining, 10,000,000( 72,320,900.2 33,933,925.6 81,589,929.1 12,573,187
Technology Subsidiary Manufacture 11,529,953.23
sales and RMB) 7 5 3 .71
Development
technology
Co., Ltd.
development
of
sophisticated
parts.
Mainly
engaged in
trade and
FIYTA (Hong
overseas 65,060,000( 379,084,989. 134,334,389. 68,195,453.8 3,589,603.
Kong) Subsidiary Retail 2,375,979.95
market HKD) 15 18 9 26
Limited
development
of FIYTA
watches
Sales of
Shenzhen clocks and
Symphony watches and 5,000,000(R 26,299,186.8 -3,191,293.3 -601,988.8
Subsidiary Retail 4,610,931.48 -601,988.83
Trading Co., gifts and MB) 3 5 3
Ltd. consultation
of relevant
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
information
and other
domestic
trading
Shanghai Mutual Sales of
Watch shareholding watches and 15,350,000( 103,188,229. 82,840,629.8 52,972,924.3
Manufacture 979,878.06 1,076,068.67
Industry Co., company spares and RMB) 94 9 3
Ltd. parts
5. Projects Invested with Funds not Raised through Share Offering
Inapplicable
VI. Prediction of the Operation Performances from January to September 2014
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
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
2013 Profit Distribution Plan was reviewed and approved at the 7th meeting of the Seventh Board of
Directors held on February 27, 2014 and 2013 Annual General Meeting held on June 10, 2014.
According to the plan, the Company took the share capital as at December 31, 2013 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 4, 2014. For more information,
refer to the Announcement on the Resolution of the 8th Meeting of the Seventh Board of Directors No.
17
FIYTA Holdings Ltd. 2014 Semi-Annual Report
2014-008, Announcement on the Resolution of 2013 Annual General Meeting No. 2014-018 and the
Announcement on the Implementation of the Equity Distribution of Year 2013 No. 2014-019.
Special description of the cash dividend distribution policy
Whether the plan complies with the Articles of Association
Yes
and resolution of the General Meeting:
Whether the dividend distribution rate and proportion are
Yes
clear and definite:
Whether the relevant decision making procedures and
Yes
mechanism are complete:
Have the independent directors have done their duty and
Yes
brought their due role into full play:
Have the minority shareholders fully expressed their
opinions and been given the opportunity of fully
Yes
expressing their opinions and appeal and has their legal
interests have been fully protected:
Are any adjustment or alteration, conditions and
procedures of the cash dividend policy in compliance or Inapplicable
transparent:
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
Discussion topics and
Reception Time Reception place Way of reception Types of Visitors Visitors received
provision of materials
Shangcheng Assets
Management Co., Development trend of the
Ltd., domestic luxury goods sector,
Zhongzhao some measures concerning
Investment the Company’s strategic
Management Co., development, brand
January 3, 2014 Company On-Site Survey Institution Ltd., China construction, channel
Merchants Fund management in the past three
Management Co., years. Provision of the
Ltd., Sunshine & Company’s public brochures
Fortuneguard Asset in 2014.
Management Co.,
Ltd., and Minsheng
18
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Securities Co., Ltd.
Huaxi Securities Co.,
Ltd., Greenwoods
Assets Management
Co., Ltd., Great Wall
Securities Co., Ltd.,
Huashang Fund
Management Co., Development trend of the
Ltd., Guotai Junan domestic luxury goods sector,
Securities Co., Ltd., some measures concerning
UBS Securities Co., the Company’s strategic
Ltd., IVY Assets development, brand
March 7, 2014 Company On-Site Survey Institution Management Co., construction, channel
Ltd., Soochow Asset management in the past three
Management Co., years. Provision of the
Ltd., Infore Capital Company’s public brochures
Management Co., in 2014.
Ltd., Guangzhou
Guangheng
Securities Research
Institute Co., Ltd. and
Haitong Securities
Assets Management
Co., Ltd.
Shenzhen Jingliang
Investment
Management Co.,
Ltd., China Galaxy
Securities Co., Ltd.,
Development trend of the
Minsheng Securities
domestic luxury goods sector,
Co., Ltd., Rongtong
some measures concerning
Fund Management
the Company’s strategic
Co., Ltd., Guangdong
development, brand
New Value
May 7, 2014 Company On-Site Survey Institution construction, channel
Investment Co., Ltd.,
management in the past three
China Southern Fund
years. Provision of the
Management Co.,
Company’s public brochures
Ltd., First Capital
in 2014.
Securities Co., Ltd.,
Penghua Fund
Management Co.,
Ltd., Shanghai Right
Share Investment
Management Co.,
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
Ltd. and Lion Fund
Management Co.,
Ltd.
Boshi Fund
Management Co.,
Ltd., Fanglian
Securities Co., Ltd.,
Shenzhen Yujin
Investment Co., Ltd.,
China Investment
Securities Co., Ltd.,
Venus Investment
Management Co.,
Development trend of the
Ltd., Bank of China
domestic luxury goods sector,
Fund Management
some measures concerning
Co., Ltd., Infore
the Company’s strategic
Capital Management
development, brand
Co., Ltd., Guotai
May 15, 2014 Company On-Site Survey Institution construction, channel
Junan Securities Co.,
management in the past three
Ltd., Changjiang
years. Provision of the
Securities Co., Ltd., E
Company’s public brochures
Fund Management
in 2014.
Co., Ltd., Chinese
Insurance Assets
Management Co.,
Ltd., Dongguan
Securities Co., Ltd.,
Pacific Assets
Management Co.,
Ltd. and Shanghai
Point Assets
Management Co.,
Ltd.
20
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Section 5 Significant Events
I. Overview of the Corporate Governance
In year 2014, 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
21
FIYTA Holdings Ltd. 2014 Semi-Annual Report
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.
Note: In case there exists discrepancy between the practical conditions in the corporate governance and
the requirements as specified in the PRC Company Law and the relevant regulations of China Securities
Regulatory Commission, the Company should disclose the content of such difference and the
rectification measures already taken in the reporting period the rectification status. Otherwise, please
disclose that “there exists no discrepancy between the practical conditions in the corporate governance
and the requirements as specified in the PRC Company Law and the relevant regulations of China
Securities Regulatory Commission”.
II. Major Lawsuits and Arbitration Affairs
Inapplicable
III. Media Query
Inapplicable
IV. Bankruptcy or Reorganization Related Events
Inapplicable
V. Asset Transactions
1. Acquisition of Assets
Inapplicable
2. Sales of Assets
Inapplicable
22
FIYTA Holdings Ltd. 2014 Semi-Annual Report
3. Enterprise Consolidation
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
Proportion
Descriptio Principle of Amount of Way of
Price of in the Similar
Type of n of pricing of the related settlement
Related Relationsh related amount of market Disclosure Disclosure
related Related the related transaction for the
Parties ip transaction the similar price date index
parties Transactio transaction (in CNY related
s transaction obtainable
ns s 10,000) transaction
s (%)
Bank
Administra Property http://www.
CATIC Common Negotiated account March 1,
tive managem 76.56 100.00% cninfo.com
Property controller price transferen 2014
expenses ent fee .cn
ce
Bank
Rainbow Shopping http://www.
Common Sales Negotiated account March 1,
Supermark mall 153.11 6.55% cninfo.com
controller costs price transferen 2014
et expenses .cn
ce
Revenue Bank
Rainbow http://www.
Common from Sales of Negotiated account March 1,
Supermark 3,985.83 2.43% cninfo.com
controller principal goods price transferen 2014
et .cn
business ce
Revenue Bank
http://www.
Eventual from Sales of Negotiated account March 1,
AVIC 65.03 0.04% cninfo.com
controller principal goods price transferen 2014
.cn
business ce
Revenue Bank
Shennan http://www.
Common from Sales of Negotiated account March 1,
Circuit Co., 1,500.6 0.91% cninfo.com
controller principal goods price transferen 2014
Ltd. .cn
business ce
Revenue Bank
CATIC http://www.
Common from Property Negotiated account March 1,
Real 75.44 1.76% cninfo.com
controller principal lease price transferen 2014
Estate .cn
business ce
CATIC Common Revenue Property Negotiated 133.03 3.11% Bank March 1, http://www.
23
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Property controller from lease price account 2014 cninfo.com
principal transferen .cn
business ce
Revenue Bank
CATIC http://www.
Common from Property Negotiated account March 1,
Securities, 53.68 1.25% cninfo.com
controller principal lease price transferen 2014
Co., Ltd. .cn
business ce
Shenzhen
Revenue Bank
CATIC City http://www.
Common from Property Negotiated account March 1,
Developm 1.12 0.03% cninfo.com
controller principal lease price transferen 2014
ent Co., .cn
business ce
Ltd.
Shenzhen
Revenue Bank
CATIC City http://www.
Common from Property Negotiated account March 1,
Developm 1.12 0.03% cninfo.com
controller principal lease price transferen 2014
ent Co., .cn
business ce
Ltd.
Shenzhen
CATIC
Guanlan Revenue Bank
http://www.
Real Common from Property Negotiated account March 1,
4.46 0.10% cninfo.com
Estate controller principal lease price transferen 2014
.cn
Developm business ce
ent Co.,
Ltd.
Shenzhen
CATIC
Revenue Bank
Changtai http://www.
Common from Property Negotiated account March 1,
Investment 64.28 1.50% cninfo.com
controller principal lease price transferen 2014
Developm .cn
business ce
ent Co.,
Ltd.
Xi’an Revenue Bank
http://www.
Tianyue Common from Property Negotiated account March 1,
270.83 6.32% cninfo.com
Hotel Co., controller principal lease price transferen 2014
.cn
Ltd. business ce
Revenue Bank
Rainbow http://www.
Common from Property Negotiated account March 1,
Supermark 22.43 0.52% cninfo.com
controller principal lease price transferen 2014
et .cn
business ce
Shenzhen Revenue Bank
http://www.
CATIC City Common from Property Negotiated account March 1,
4.5 0.11% cninfo.com
Investment controller principal lease price transferen 2014
.cn
Co., Ltd. business ce
24
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Shenzhen
CATIC
Revenue Bank
Jiufang http://www.
Common from Property Negotiated account March 1,
Assets 18.18 0.42% cninfo.com
controller principal lease price transferen 2014
Managem .cn
business ce
ent Co.,
Ltd.
Shenzhen
CATIC Revenue Bank
http://www.
Theme Common from Property Negotiated account March 1,
47.28 1.10% cninfo.com
Real controller principal lease price transferen 2014
.cn
Estate Co., business ce
Ltd.
China
National
Revenue Bank
Aero-Tech http://www.
Actual from Property Negotiated account March 1,
nology 21.03 0.49% cninfo.com
controller principal lease price transferen 2014
Corporatio .cn
business ce
n
Shenzhen
Ganzhou
CATIC
Bank
Real http://www.
Common Sales Property Negotiated account March 1,
Estate 50.18 1.22% cninfo.com
controller costs lease price transferen 2014
Developm .cn
ce
ent Co.,
Ltd.
Chengdu
CATIC
Bank
Real http://www.
Common Sales Property Negotiated account March 1,
Estate 40.5 0.99% cninfo.com
controller costs lease price transferen 2014
Developm .cn
ce
ent Co.,
Ltd.
Total -- -- 6,589.19 -- -- -- -- --
Details of large amount of sales returns Inapplicable
Actual implementation of the routine related
transactions incurred during the reporting
Inapplicable
period whose total amount had been predicted
based on the categories (if any)
Cause of bigger difference between the bargain
Inapplicable
price and the market reference price (if any)
25
FIYTA Holdings Ltd. 2014 Semi-Annual Report
2. Related transactions concerning assets acquisition/sales
Inapplicable
3. Related Transitions of Joint Investments
Inapplicable
4. Current Associated Rights of Credit and Liabilities
Inapplicable
Did there exist any non-operational related rights of credit and liabilities
√ Yes □ No
Does there
Amount
Types of exist Opening
Causes of incurred in the Ending balance
Related parties Relationship creditor’s right non-operation balance (in
formation reporting period (in CNY10,000)
and liabilities oriented fund CNY10,000)
(in CNY10,000)
occupancy?
Amount due
Common Trade
Rainbow Supermarket from the related No 215.41 193.11 408.52
controller receivables
party
Amount due
Eventual Trade
AVIC from the related No 64.41 -1.33 63.08
controller receivables
party
Amount due
Common Trade
Shennan Circuit Co., Ltd. from the related No 1,788.43 62.14 1,850.57
controller receivables
party
CATIC Electronic Amount due
Common Trade
Measuring Instruments from the related No 29.74 -26.32 3.42
controller receivables
Co., Ltd party
Amount due
Common Shopping mall
Rainbow Supermarket from the related No 16.79 0.85 17.64
controller deposit
party
Amount due
Xi’an Tianyue Hotel Co., Common
from the related Rental No 175 25 200
Ltd. controller
party
Shenzhen CATIC Amount due
Common
Enterprise Group from the related Training fees No 1.14 13.86 15
controller
Training Center party
Chengdu CATIC Real Amount due
Common
Estate Development Co., from the related Rental deposit No 11.56 -1.51 10.05
controller
Ltd. party
Ganzhou CATIC Real Common Amount due Rental deposit No 12.27 0 12.27
26
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Estate Development Co., controller from the related
Ltd. party
Amount due
Common
CATIC Property from the related Rental No 0.67 -0.67 0
controller
party
CATIC Electronic Amount due to
Common
Measuring Instruments the related Trade payables No 4.55 -4.55 0
controller
Co., Ltd party
Amount due to
Eventual
AVIC the related Trade payables No 1.55 -1.55 0
controller
party
Shenzhen CATIC Amount due to
Common
Building Technology Co., the related Rental deposit No 0.82 0 0.82
controller
Ltd. party
Shenzhen CATIC Amount due to
Common
Nanguang Elevator the related Rental deposit No 0.34 0 0.34
controller
Engineering Co., Ltd. party
Amount due to
Shenzhen CATIC City Common
the related Rental deposit No 3.77 0 3.77
Investment Co., Ltd. controller
party
Amount due to
CATIC Securities, Co., Common
the related Rental deposit No 17.89 0 17.89
Ltd. controller
party
Amount due to
Common
CATIC Real Estate the related Rental deposit No 42.48 0 42.48
controller
party
Shenzhen CATIC Amount due to
Common
Changtai Investment the related Rental deposit No 22.17 0 22.17
controller
Development Co., Ltd. party
Amount due to
Common
Rainbow Supermarket the related Rental deposit No 6 0 6
controller
party
Shenzhen CATIC Jiufang Amount due to
Common
Assets Management Co., the related Rental deposit No 6.06 0 6.06
controller
Ltd. party
Chengdu CATIC Real Amount due to
Common
Estate Development Co., the related Rental deposit No 0.44 -0.44 0
controller
Ltd. party
Amount due to
AVIC International Controlling
the related Borrowing No 0 15,000 15,000
Holdings Limited shareholder
party
Influence of the related rights of credit and
liabilities upon the Company’s operation Inapplicable
results and financial position.
27
FIYTA Holdings Ltd. 2014 Semi-Annual Report
5. Other Material Related Transactions
The 10th meeting of the Seventh Board of Directors held on May 23, 2014 reviewed and approved the
Proposal on Application to the Controlling Shareholder for Loan. For the detail, refer to the
Announcement on the Resolution of the 10th Meeting of the Seventh Board of Directors (2014-016) and
the Announcement on the Related Transaction of Application to the Controlling Shareholder for Loan
(2014-o17).
Relevant inquiry with the Internet website for disclosing provisional report on material related
transactions
Description of the website for
Description of provisional Date of disclosing
disclosing provisional
announcement provisional announcement
announcements
Announcement on the Related
Transaction of Application to the
May 23, 2014 www.cninfo.com.cn
Controlling Shareholder for Loan
(2014-o17).
VIII. The Company’s fund occupied by its controlling shareholder or related party for
non-operation purpose
Inapplicable
IX. Important Contracts and Implementation
1. Custody, Contacting and Leases
(1) Custody
Inapplicable
(2) Contracts
Inapplicable
(3) Leases
Inapplicable
2. Guarantees
In CNY 10,000
Outward guarantees (excluding guarantee to the subsidiaries)
Names of Gurantees Date of the Guarantee Date of Actual amount of Type of Guarantee Implement Guarantee
28
FIYTA Holdings Ltd. 2014 Semi-Annual Report
announceme line occurrence (date guarantee guarantee period ation to related
nt on the of agreement status party?
guarantee execution) (Y/N)
line
Inapplicable
Total amount of outward
Total amount of outward guarantee
0 guarantee actually incurred in the 0
approved in the report period (A1)
report period (A2)
Total amount of outward guarantee Total ending balance of outward
already approved at the end of the 0 guarantee at the end of the report 0
report period (A3) period (A4)
Guarantees to the Subsidiaries
Date of the
Date of Guarantee
announceme Implement
Guarantee occurrence (date Actual amount of Type of Guarantee to related
Names of Guarantees nt on the ation
line of agreement guarantee guarantee period party?
guarantee status
execution) (Y/N)
line
Shenzhen Harmony Guarantee with
February 27, December 30,
World Watches Center 10,000 10,000 joint 1 year No No
2013 2013
Co., Ltd. responsibility
Shenzhen Harmony Guarantee with
February 27, February 25,
World Watches Center 6,000 6,000 joint 1 year No No
2013 2014
Co., Ltd. responsibility
Shenzhen Harmony Guarantee with
February 27,
World Watches Center 5,000 July 18, 2013 5,000 joint 1 year No No
2013
Co., Ltd. responsibility
Shenzhen Harmony Guarantee with
March 1,
World Watches Center 5,000 June 13, 2014 5,000 joint 6 months No No
2014
Co., Ltd. responsibility
Shenzhen Harmony Guarantee with
February 27, February 27,
World Watches Center 2,000 2,000 joint 1 year No No
2013 2014
Co., Ltd. responsibility
Shenzhen Harmony Guarantee with
March 1,
World Watches Center 3,000 March 6, 2014 3,000 joint 6 months No No
2014
Co., Ltd. responsibility
Shenzhen Harmony Guarantee with
March 1,
World Watches Center 5,000 May 9, 2014 3,000 joint 1 year No No
2014
Co., Ltd. responsibility
Shenzhen Harmony Guarantee with
March 1,
World Watches Center 4,000 May 27, 2014 2,700 joint 1 year No No
2014
Co., Ltd. responsibility
Guarantee with
FIYTA (Hong Kong) February 27,
3,969.5 July 11, 2013 3,969.5 joint 3 years No No
Limited 2013
responsibility
29
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Guarantee with
FIYTA (Hong Kong) February 27,
3,969.5 August 5, 2013 3,969.5 joint 3 years No No
Limited 2013
responsibility
Guarantee with
FIYTA (Hong Kong) February 27,
1,587.8 January 6, 2014 1,587.8 joint 3 years No No
Limited 2013
responsibility
Guarantee with
FIYTA (Hong Kong) February 27,
793.9 January 27, 2014 793.9 joint 3 years No No
Limited 2013
responsibility
Guarantee with
FIYTA (Hong Kong) March 1,
1,587.8 March 3, 2014 1,587.8 joint 3 years No No
Limited 2014
responsibility
Guarantee with
FIYTA (Hong Kong) February 23, November 9,
2,381.7 2,381.7 joint 2 years No No
Limited 2012 2012
responsibility
Guarantee with
FIYTA (Hong Kong) February 23,
1,587.8 October 5, 2012 1,587.8 joint 2 years No No
Limited 2012
responsibility
Total guarantee quota to the
Total amount of guarantee to the
subsidiaries approved in the reporting
100,000 subsidiaries actually incurred in 25,669.5
period (B1)
the reporting period (B2)
Total guarantee quota to the Total balance of actual guarantee
subsidiaries approved at the end of 100,000 to the subsidiaries at the end of 52,578
the reporting period (B3) the reporting period (B4)
The Company’s total guarantee (i.e. total of the first two main items)
Total amount of guarantee
Total guarantee quota approved in
100,000 actually incurred in the reporting 25,669.5
the reporting period (A1+B1)
period (A2+B2)
Total guarantee quota already Total balance of the actual
approved at the end of the reporting 100,000 guarantee at the end of the 52,578
period (A3+B3) reporting period (A4+B4)
Proportion of the actual guarantees in the Company’s net assets
33.12%
(namely A4+B4)
Including:
Description of the possibility of bearing joint repayment liability due to
Inapplicable
undue guarantee
Description of external guarantee against the specified procedures Inapplicable
Description of the guarantee with complex method
Inapplicable
30
FIYTA Holdings Ltd. 2014 Semi-Annual Report
(1) Outward guarantee against the regulations
Inapplicable
3. Other Important Contracts
Inapplicable
4. Other Important Transactions
Inapplicable
X. The 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).
Inapplicable
XI. Engagement/Disengagement of CPAs
Has the Semi-annual Financial Report been audited
□ Yes √ No
XII. Punishment and Rectification
Inapplicable
XIII. Disclosure of the Delisting Risk due to Breach of Law/Regulations
Inapplicable
XIV. Notes to Other Significant Events
Inapplicable
Section 6 Change of Shares and Particulars about Shareholders
I. Change of Shares
In Shares
Before the change Increase / Decrease (+/ -) After the change
31
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Shares
Proportion New Bonus converted Proportion
Quantity Others Sub-total Quantity
(%) issuing shares from (%)
reserve
I. Restricted shares 49,733 0.01% 0 0 0 0 0 49,733 0.01%
1. Shares held by the state 0 0.00% 0 0 0 0 0 0 0.00%
2、State corporate shares 0 0.00% 0 0 0 0 0 0 0.00%
3. Other domestic shares 49,733 0.01% 0 0 0 0 0 49,733 0.01%
Including: Domestic corporate
0 0.00% 0 0 0 0 0 0 0.00%
shares
Shares held by domestic
49,733 0.01% 0 0 0 0 0 49,733 0.01%
natural persons
4、Foreign invested shares 0 0.00% 0 0 0 0 0 0 0.00%
Including: Foreign corporate
0 0.00% 0 0 0 0 0 0 0.00%
shares
Shares held by foreign
0 0.00% 0 0 0 0 0 0 0.00%
natural persons
392,718,13 392,718,13
II. Unrestricted shares 99.99% 0 0 0 0 0 99.99%
7 7
311,070,13 311,070,13
1. CNY ordinary shares 79.20% 0 0 0 0 0 79.20%
7 7
2. Foreign invested shares
81,648,000 20.79% 0 0 0 0 0 81,648,000 20.79%
listed in Mainland China
3、Foreign invested shares
0 0.00% 0 0 0 0 0 0 0.00%
listed abroad
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
392,767,87 392,767,87
III. Total shares 100.00% 0 0 0 0 0 100.00%
0 0
Cause of the change of shares
Inapplicable
Approval for the change of shares
Inapplicable
Transfer of the 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 ordinary
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
32
FIYTA Holdings Ltd. 2014 Semi-Annual Report
regulatory authority for disclosing
Inapplicable
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
Inapplicable
II. Number of Shareholders and Shareholding
In shares
Total shareholders of preferred
Total shareholders of ordinary
shares (if any) whose voting power
shares at the end of the reporting 27,068 0
has been recovered in the
period
reporting period (refer to Note 8)
Shares held by the shareholder holding over 5% of the total shares or the top 10 shareholders
Number Pledging or freezing
Quantity at the Increase/ Number
of the
end of the decrease of the
Shareholder’s Shareholding non-restr
Nature reporting in the restricted Status of the
Name proportion (%) icted Quantity
period reporting shares shares
shares
period held
held
AVIC International State corporate 162,977,
41.49% 162,977,327 0 0
Holdings Limited shareholder 327
China Merchants
-1,256,5 5,973,62
Securities (HK) Overseas corporate 1.52% 5,973,620 0
30 0
Co., Ltd.
China Everbright
Bank Limited by
Share Ltd - UBS
Domestic non-state 4,600,49 4,600,49
Investment 1.17% 4,600,496 0
corporate shareholder 6 6
Securities
Investment Fund
Industry Boom
Hua An Fund –
Minsheng Bank –
Tianshou
Domestic non-state 3,756,04
Investment 0.96% 3,756,047 400,000 0
corporate shareholder 7
Portfolio No. 1
Asset Management
Plan
33
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Bank of
Communications -
Factoring Domestic non-state 3,599,88 3,599,88
0.92% 3,599,888 0
Securities corporate shareholder 8 8
Investment Fund
Industry Boom
GOLDEN CHINA
3,418,28
PLUS MASTER Overseas corporate 0.87% 3,418,284 - 0
4
FUND
Essence
International -1,030,0 3,103,20
Overseas corporate 0.79% 3,103,200 0
Securities (Hong 85 0
Kong) Limited
GREENWOODS
2,442,70 2,666,29
CHINA ALPHA Overseas corporate 0.68% 2,666,297 0
7 7
MASTER FUND
Domestic natural 2,053,26
Dai Wen 0.52% 2,053,268 814,168 0
person 8
Zhongrong
International Trust
Co., Ltd. –
Zhongrong Golden
Domestic non-state -2,337,9 2,000,00
Touch No. 11 0.51% 2,000,000 0
corporate shareholder 00 0
Securities
Investment
Portfolio Fund Trust
Program
About the fact that a strategic investor or
ordinary corporate became one of the top
Inapplicable
ten shareholders due to placement of new
shares (if any) (Refer to Note 3)
Explanation on associated relationship or The Company has found neither affiliation among the aforesaid shareholders nor concerted actor as
consistent action of the above specified in the Measures for Administration of Information on the Shareholder Equity Change of
shareholders Listed Companies.
Shareholding of top 10 shareholders of unrestricted shares
Number of unrestricted shares held at the end of the Share type
Shareholder’s Name
reporting period Share type Quantity
AVIC International Holdings Limited 162,977,327 A-shares 162,977,327
China Merchants Securities (HK) Co., Ltd. 5,973,620 B-shares 5,973,620
China Everbright Bank Limited by Share
Ltd - UBS Investment Securities 4,600,496 A-shares 4,600,496
Investment Fund Industry Boom
34
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Hua An Fund – Minsheng Bank –
Tianshou Investment Portfolio No. 1 Asset 3,756,047 A-shares 3,756,047
Management Plan
Bank of Communications - Factoring
3,599,888 A-shares 3,599,888
Securities Investment Fund Industry Boom
GOLDEN CHINA PLUS MASTER FUND 3,418,284 B-shares 3,418,284
Essence International Securities (Hong
3,103,200 B-shares 3,103,200
Kong) Limited
GREENWOODS CHINA ALPHA MASTER
2,666,297 B-shares 2,666,297
FUND
Dai Wen 2,053,268 A-shares 2,053,268
Zhongrong International Trust Co., Ltd. –
Zhongrong Golden Touch No. 11 Securities 2,000,000 A-shares 2,000,000
Investment Portfolio Fund Trust Program
Explanation to the associated relationship
or consistent action among the top 10
The Company has found neither affiliation among the aforesaid shareholders nor concerted actor as
shareholders of non-restricted negotiable
specified in the Measures for Administration of Information on the Shareholder Equity Change of
shares and that between the top 10
Listed Companies.
shareholders of non-restricted negotiable
shares and top 10 shareholders.
Note to the top 10 shareholders involved in
Inapplicable
margin financing & securities lending (if
any) (Refer to Note 4)
Did the shareholders conduct agreed repurchase securities trading in the reporting period?
No
III. Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the reporting period
Inapplicable
Change of the actual controller in the reporting period
Inapplicable
IV. Share Acquisition Plan Proposed or Implemented by the Company’s Shareholder
and its Concerted Actor in the Reporting Period
Inapplicable
35
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Section 7 About Preferred Shares
I. Issuing and Listing of Preferred Shares in the Reporting Period
Inapplicable
II. Number of Shareholders of Preferred Shares and the Shareholding
Inapplicable
III. Repurchase or Conversion of Preferred Shares
1. Repurchase of Preferred Shares
Inapplicable
2. Conversion of Preferred Shares
Inapplicable
IV. Recovery and Implementation of the Voting Power of Preferred Shares
Inapplicable
V. Accounting Policy Adopted for Preferred Shares and the Cause
Inapplicable
36
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Section 8 Directors, Supervisors and Senior Executives
I. Change in Shares Held by Directors, Supervisors and Senior Executives
Number of
Number of
Number of restricted
Number of Number of Number of restricted
shares held shares
shares shares shares held shares
at the granted at Number of restricted
acquired lessened at the end granted
Office beginning of the shares granted at the
Names Positions during the during the of the during the
Status the beginning of end of the reporting
reporting reporting reporting reporting
reporting the period (share)
period period period period
period reporting
(share) (share) (share) (share)
(share) period
(share)
Lai
Chairman Current
Weixuan
Xu Managing
Current
Dongsheng director
Wang
Director Current
Mingchuan
Huang
Director Current
Yongfeng
Liu Aiyi Director Current
Zhong Sijun Director Current
Zhang Independen
Current
Hongguang t director
Zhang Independen
Current
Shunwen t director
Independen
Wang Yan Current
t director
Chairman of
the
Sui Yong Current
Supervisory
Committee
Tang Boxue Supervisor Current
Chen Zhuo Supervisor Current
Deputy GM
&
Chen Libin Current
Secrectary
of the Board
Lu
Deputy GM Current 66,311 0 0 66,311 0 0 0
Bingqiang
37
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Du Xi Deputy GM Current
Lu Wanjun Deputy GM Current
Chief
Hu Xinglong Current
accountant
Total -- -- 66,311 0 0 66,311 0 0 0
II. Personnel Change of Directors, Supervisors and Supervisors
Names Office Held Type Date Cause
Applied for resigning the title of the Company’s director for the
Wang Xiaohua Director Retired February 27, 2014
cause of job.
In accordance with the relevant provisions of the PRC
Company Law, the Corporate Governance Standards for Listed
Companies, etc. and the Articles of Association of the
Liu Aiyi Director Elected June 10, 2014
Company, reviewed and approved at 2013 Annual General
Meeting, Mrl Liu Aiyi was elected a director of the Seventh
Board of Directors
In accordance with the relevant provisions of the PRC
Company Law, the Corporate Governance Standards for Listed
Companies, etc. and the Articles of Association of the
Zhong Sijun Director Elected June 10, 2014
Company, reviewed and approved at 2013 Annual General
Meeting, Mr. Zhong Sijun was elected a director of the Seventh
Board of Directors
In accordance with the relevant provisions of the PRC
Company Law, the Corporate Governance Standards for Listed
Companies, etc. and the Articles of Association of the
Du Xi Deputy GM Appointed August 8, 2014
Company, reviewed and approved at 2013 Annual General
Meeting, Mr. Du Xi was elected Deputy General Manager of the
Company
In accordance with the relevant provisions of the PRC
Company Law, the Corporate Governance Standards for Listed
Companies, etc. and the Articles of Association of the
Lu Wanjun Deputy GM Appointed August 8, 2014
Company, reviewed and approved at 2013 Annual General
Meeting, Mr. Lu Wanjun was elected Deputy General Manager
of the Company
In accordance with the relevant provisions of the PRC
Company Law, the Corporate Governance Standards for Listed
Companies, etc. and the Articles of Association of the
Hu Xinglong Chief accountant Appointed August 8, 2014
Company, reviewed and approved at 2013 Annual General
Meeting, Mr. Hu Xinglong was elected Chief Accountant of the
Company
Deputy GM & Applied for resigning Deputy GM & Chief accountant due to job
Li Dehua Dismissed August 8, 2014
Chief accountant transfer
Li Bei Deputy GM Dismissed August 8, 2014 Applied for resigning Deputy GM of the Company due to the
38
FIYTA Holdings Ltd. 2014 Semi-Annual Report
age
Applied for resigning Deputy GM of the Company due to the
Fang Juan Deputy GM Dismissed August 8, 2014
age
39
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Section 9 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 159,843,756.99 107,663,110.74
Settlement Reserve
Inter-bank lending
Trading financial assets
Notes receivable 18,942,659.00 7,100,000.00
Accounts receivable 429,298,599.75 324,457,339.19
Prepayments 30,242,553.26 43,487,613.07
Insurance premium
receivable
Reinsurance accounts
receivable
Accounts receivable
reinsurance reserve
Interest receivable
Dividends receivable
Other receivables 48,674,506.86 40,436,640.10
Buying and selling back
financial assets
Inventories 2,082,397,057.72 2,123,342,820.93
Non-current assets due
within a year
Other current assets 9,297,764.83 30,811,991.07
40
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Total current assets 2,778,696,898.41 2,677,299,515.10
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
42,818,376.91 43,322,940.12
investment
Investment based real
230,663,811.82 235,235,684.76
estate
Fixed assets 318,971,712.52 306,888,964.31
Construction-in-process 20,154,445.12 6,608,187.55
Engineering supplies
Disposal of fixed assets
Productive biological
assets
Oil and gas asset
Intangible assets 35,842,463.18 36,168,611.72
Development expenses
Goodwill
Long-term expenses to
148,035,738.29 146,542,685.58
be apportioned
Deferred income tax
82,867,259.34 74,159,134.29
asset
Other non-current assets 31,500,000.00 32,476,867.85
Total non-current assets 910,853,807.18 881,403,076.18
Total assets 3,689,550,705.59 3,558,702,591.28
Current liabilities:
Short-term borrowing 880,000,000.00 1,023,000,000.00
Borrowings from central
bank
Receipt of deposits and
deposits from other banks
Loans from other banks
Trading financial liabilities
Notes payable
Accounts payable 194,912,347.73 222,347,620.47
Advance receipts 16,871,862.79 9,667,278.30
Funds from selling out
41
FIYTA Holdings Ltd. 2014 Semi-Annual Report
and repurchasing financial
assets
Service charge and
commission payable
Salaries payable to the
17,350,357.36 31,173,812.15
employees
Taxes payable 77,458,797.66 57,628,175.26
Interest payable 9,207,600.91 19,422,859.82
Dividends payable 39,276,787.00
Other payables 191,384,823.80 38,454,934.30
Reinsurance payable
Insurance contract
reserve
Funds from securities
trading agency
Funds from underwriting
securities agency
Non-current liabilities due
39,695,000.00 39,310,000.00
within a year
Other current liabilities 14,807,907.72 4,924,394.22
Total current liabilities 1,480,965,484.97 1,445,929,074.52
Non-Current Liabilities:
Long term borrowings 218,121,283.35 173,274,950.01
Bonds payable 398,244,033.76 397,728,975.00
Long term accounts
payable
Special accounts payable
Predicted liabilities
Deferred income tax
liability
Other non-current
3,430,000.00 2,950,000.00
liabilities
Total non-current liabilities 619,795,317.11 573,953,925.01
Total liabilities 2,100,760,802.08 2,019,882,999.53
Owners’ equity (or
shareholders’ 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 156,714,094.20 156,714,094.20
Generic risk reserve
42
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Retained earnings 518,713,686.77 469,706,600.67
Foreign Currency Capital -6,004,641.42 -8,260,833.09
Total owner’s equity
attributable to the parent 1,587,697,962.33 1,536,434,684.56
company
Minority equity 1,091,941.18 2,384,907.19
Owners’ equity (or
1,588,789,903.51 1,538,819,591.75
shareholders’ equity)
Total liabilities and owners’
3,689,550,705.59 3,558,702,591.28
equity (or shareholders’ equity)
Legal Representative: Lai Weixuan Chief Financial Officer: Hu Xinglong Manager of the
Accounting Dept: Hu Xinglong
43
FIYTA Holdings Ltd. 2014 Semi-Annual Report
2. Balance Sheet, Parent Company
Prepared by FIYTA Holdings Ltd.
In CNY
Items Ending balance Opening balance
Current assets:
Monetary fund 45,096,060.51 27,929,968.24
Trading financial assets
Notes receivable
Accounts receivable 219,193,039.81 239,193,039.81
Prepayments 282,000.00
Interest receivable
Dividends receivable 98,601,444.91
Other receivables 1,275,388,416.75 1,337,631,334.01
Inventories
Non-current assets due
within a year
Other current assets 308,119.88
Total current assets 1,638,560,961.98 1,605,062,461.94
Non-Current Assets:
Available-for-sale
financial assets
Held –to-maturity
investment
Long-term accounts
receivable
Long-term equity
773,618,096.91 775,522,660.12
investment
Investment based real
230,663,811.82 235,235,684.76
estate
Fixed assets 119,185,181.82 108,094,045.84
Construction-in-process 20,154,445.12 6,608,187.55
Engineering supplies
Disposal of fixed assets
Productive biological
assets
Oil and gas asset
Intangible assets 29,500,261.56 29,820,750.12
Development expenses
Goodwill
Long-term expenses to 4,865,607.53 5,679,969.47
44
FIYTA Holdings Ltd. 2014 Semi-Annual Report
be apportioned
Deferred income tax
775,806.46 775,806.46
asset
Other non-current assets 10,976,867.85
Total non-current assets 1,178,763,211.22 1,172,713,972.17
Total assets 2,817,324,173.20 2,777,776,434.11
Current liabilities:
Short-term borrowing 613,000,000.00 823,000,000.00
Trading financial liabilities
Notes payable
Accounts payable 1,423,712.81 1,273,442.81
Advance receipts 1,229,743.58 1,368,593.44
Salaries payable to the
2,091,034.69 5,700,000.00
employees
Taxes payable 4,364,873.50 2,909,411.40
Interest payable 8,791,135.16 18,444,077.78
Dividends payable 39,276,787.00
Other payables 164,909,466.28 15,261,230.72
Non-current liabilities due
within a year
Other current liabilities
Total current liabilities 835,086,753.02 867,956,756.15
Non-Current Liabilities:
Long term borrowings 91,861,928.00 87,361,928.00
Bonds payable 398,244,033.76 397,728,975.00
Long term accounts
payable
Special accounts payable
Predicted liabilities
Deferred income tax
liability
Other non-current
3,430,000.00 2,950,000.00
liabilities
Total non-current liabilities 493,535,961.76 488,040,903.00
Total liabilities 1,328,622,714.78 1,355,997,659.15
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 156,714,094.20 156,714,094.20
45
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Generic risk reserve
Retained earnings 408,057,000.34 341,134,316.88
Foreign Currency Capital
Owners’ equity (or
1,488,701,458.42 1,421,778,774.96
shareholders’ equity)
Total liabilities and owners’
2,817,324,173.20 2,777,776,434.11
equity (or shareholders’ equity)
Legal Representative: Lai Weixuan Chief Financial Officer: Hu Xinglong Manager of the
Accounting Dept: Hu Xinglong
46
FIYTA Holdings Ltd. 2014 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 1,642,614,790.97 1,508,353,766.86
Including: revenue 1,642,614,790.97 1,508,353,766.86
Interest income
Earned premium
Service charge
and commission income
II. Total operating cost 1,539,792,741.34 1,426,809,547.89
Including: operating costs 1,038,060,709.77 970,869,666.64
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
10,314,717.04 9,598,819.57
and surcharge
Sales costs 349,761,320.39 315,335,871.86
Administrative
84,852,192.39 78,223,983.74
expenses
Financial
54,196,678.49 47,823,408.80
expenses
Loss from
2,607,123.26 4,957,797.28
impairment of assets
Plus: Income from
change of fair value (loss is
stated with “-“)
Investment
-504,563.21 108,440.73
income (loss is stated with “-“)
Including: return
on investment in associates -504,563.21 108,440.73
and joint ventures
47
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Exchange income
(loss expressed with “-“)
III. Operating Profit (loss is
102,317,486.42 81,652,659.70
stated with “-“)
Plus: Non-operating
3,189,982.57 1,561,438.20
income
Less: Non-operating
550,640.88 246,186.21
expenses
Including: Loss
from disposal of non-current 31,046.62 27,315.73
assets
IV. Total profit (total loss is
104,956,828.11 82,967,911.69
stated with “-“)
Less: Income tax
16,573,527.31 13,755,185.77
expense
V. Net Profit (net loss is stated
88,383,300.80 69,212,725.92
with “-“)
Including: Net profit
realized by the consolidatee
realized before the
consolidation
Net profit attributable to
88,283,873.10 69,097,419.87
the parent company’s owner
Minority shareholders’
99,427.70 115,306.05
gain/loss
VI. Earnings per share: -- --
(I) Basic earnings per
0.225 0.176
share
(II) Diluted earnings per
0.225 0.176
share
VII. Other comprehensive
2,263,797.96 -3,563,383.18
income
VIII. Total comprehensive
90,647,098.76 65,649,342.74
income
Total comprehensive
income attributable to the 90,540,064.77 65,548,759.81
owner of the parent company
Total comprehensive
income attributable to minority 107,033.99 100,582.93
shareholders
Legal Representative: Lai Weixuan Chief Financial Officer: Hu Xinglong Manager of the
Accounting Dept: Hu Xinglong
48
FIYTA Holdings Ltd. 2014 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 42,966,203.07 44,773,085.81
Less: Business costs 6,497,016.07 6,806,000.42
Business taxes and
2,436,791.95 3,026,540.05
surcharge
Sales costs 0.00 3,846,026.66
Administrative
22,657,408.82 21,162,716.18
expenses
Financial expenses 1,435,963.14 460,822.78
Loss from
-4,394.68 210,607.55
impairment of assets
Plus: Income from
change of fair value (loss is 0.00 0.00
stated with “-“)
Investment income
98,096,881.70 75,079,918.87
(loss is stated with “-“)
Including: return on
investment in associates and -504,563.21 108,440.73
joint ventures
II. Operating Profit (loss is
108,040,299.47 84,340,291.04
stated with “-“)
Plus: Non-operating
861,031.28 1,000,834.62
income
Less: Non-operating
150,000.00 180,000.00
expenses
Including: Loss from
0.00 0.00
disposal of non-current assets
III. Total profit (total loss is
108,751,330.75 85,161,125.66
stated with “-“)
Less: Income tax
2,551,860.29 2,397,616.45
expense
IV. Net Profit (net loss is stated
106,199,470.46 82,763,509.21
with “-“)
V. Earnings per share -- --
(I) Basic earnings per
0.270 0.211
share
(II) Diluted earnings per 0.270 0.211
49
FIYTA Holdings Ltd. 2014 Semi-Annual Report
share
VI. Other comprehensive
0.00 0.00
income
VII. Total comprehensive
106,199,470.46 82,763,509.21
income
Legal Representative: Lai Weixuan Chief Financial Officer: Hu Xinglong Manager of the
Accounting Dept: Hu Xinglong
50
FIYTA Holdings Ltd. 2014 Semi-Annual Report
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
1,780,633,526.09 1,653,001,232.85
of 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 0.00 0.00
Other operation activity
15,296,054.99 18,388,403.90
related cash receipts
Subtotal of cash flow in from
1,795,929,581.08 1,671,389,636.75
operating activity
Cash paid for purchase of 1,177,579,276.03 1,104,945,928.41
51
FIYTA Holdings Ltd. 2014 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 223,473,612.75 197,357,609.04
Taxes paid 96,337,099.02 87,867,910.11
Other business related
160,540,913.89 147,223,388.62
cash payments
Subtotal of cash flow out from
1,657,930,901.69 1,537,394,836.18
operating activity
Net cash flow arising from
137,998,679.39 133,994,800.57
operating activities
II. Cash flows arising from
investment activities:
Cash received from
0.00 0.00
recovery of investment
Cash received from
0.00 0.00
investment income
Net amount of cash
received from disposal of fixed
1,581.04 681,262.51
assets, intangible assets and
other long term assets
Net cash received from
disposal of subsidiaries and 0.00 0.00
other operating units
Other investment related
0.00 0.00
cash receipts
Subtotal of cash flow in from
1,581.04 681,262.51
investment activity
Cash paid for
construction/purchase of fixed
77,189,659.42 58,489,580.79
assets, intangible assets and
other long term assets
Cash paid for investment 0.00 0.00
52
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Net increase of
hypothecated loans
Net cash received from
payment by subsidiaries and 0.00 0.00
other operating units
Other investment related
0.00 0.00
cash payments
Subtotal of cash flow out from
77,189,659.42 58,489,580.79
investment activity
Net cash flow arising from
-77,188,078.38 -57,808,318.28
investment activities
III. Cash flows arising from
fund raising activities:
Cash received from
0.00 0.00
absorption of investment
Incl.: Cash received from
subsidiaries’ absorption of
0.00 0.00
minority shareholders’
investment
Cash received from
841,502,500.00 510,892,441.63
borrowings
Cash received from bond
issuing
Other fund-raising related
0.00 0.00
cash receipts
Subtotal of cash flow in from
841,502,500.00 510,892,441.63
fund raising activity
Cash paid for liabilities
790,751,192.02 605,167,616.01
repayment
Cash paid for
dividend/profit distribution or 57,371,716.58 25,666,632.98
repayment of interest
Including: Dividend and
profit paid by subsidiaries to 0.00 0.00
minority shareholders
Other fund-raising related
2,295,383.00 502,986.00
cash payments
Subtotal of cash flow out from
850,418,291.60 631,337,234.99
fund raising activity
Net cash flow arising from
-8,915,791.60 -120,444,793.36
fund-raising activities
IV. Influence from change of
exchange rate upon cash and 285,836.84 -672,558.62
cash equivalents
53
FIYTA Holdings Ltd. 2014 Semi-Annual Report
V. Net increase of cash and
52,180,646.25 -44,930,869.69
cash equivalents
Plus: Opening balance of
107,663,110.74 140,420,994.71
cash and cash equivalents
VI. Ending balance of cash and
159,843,756.99 95,490,125.02
cash equivalents
Legal Representative: Lai Weixuan Chief Financial Officer: Hu Xinglong Manager of the
Accounting Dept: Hu Xinglong
54
FIYTA Holdings Ltd. 2014 Semi-Annual Report
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
62,443,531.63 45,381,348.64
of goods and supply of labor
Rebated taxes received
Other operation activity
107,338,821.67 113,856,708.91
related cash receipts
Subtotal of cash flow in from
169,782,353.30 159,238,057.55
operating activity
Cash paid for purchase of
goods and reception of labor
services
Cash paid to and for staff 24,629,959.54 21,485,348.55
Taxes paid 4,370,657.08 9,100,088.39
Other business related
6,191,101.05 289,779,618.43
cash payments
Subtotal of cash flow out from
35,191,717.67 320,365,055.37
operating activity
Net cash flow arising from
134,590,635.63 -161,126,997.82
operating activities
II. Cash flows arising from
investment activities:
Cash received from
1,400,000.00
recovery of investment
Cash received from
investment income
Net amount of cash
received from disposal of fixed
672,000.00
assets, intangible assets and
other long term assets
Net cash received from
disposal of subsidiaries and
other operating units
Other investment related
cash receipts
55
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Subtotal of cash flow in from
1,400,000.00 672,000.00
investment activity
Cash paid for
construction/purchase of fixed
15,746,936.23 2,795,509.98
assets, intangible assets and
other long term assets
Cash paid for investment
Net cash received from
payment by subsidiaries and
other operating units
Other investment related
cash payments
Subtotal of cash flow out from
15,746,936.23 2,795,509.98
investment activity
Net cash flow arising from
-14,346,936.23 -2,123,509.98
investment activities
III. Cash flows arising from
fund raising activities:
Cash received from
absorption of investment
Cash received from
485,000,000.00 446,900,000.00
borrowings
Cash received from bond
issuing
Other fund-raising related
cash receipts
Subtotal of cash flow in from
485,000,000.00 446,900,000.00
fund raising activity
Cash paid for liabilities
540,500,000.00 289,800,000.00
repayment
Cash paid for
dividend/profit distribution or 46,682,224.13 12,877,937.77
repayment of interest
Other fund-raising related
895,383.00 502,986.00
cash payments
Subtotal of cash flow out from
588,077,607.13 303,180,923.77
fund raising activity
Net cash flow arising from
-103,077,607.13 143,719,076.23
fund-raising activities
IV. Influence from change of
exchange rate upon cash and
cash equivalents
V. Net increase of cash and
17,166,092.27 -19,531,431.57
cash equivalents
56
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Plus: Opening balance of
27,929,968.24 51,372,778.02
cash and cash equivalents
VI. Ending balance of cash and
45,096,060.51 31,841,346.45
cash equivalents
Legal Representative: Lai Weixuan Chief Financial Officer: Hu Xinglong Manager of the
Accounting Dept: Hu Xinglong
57
FIYTA Holdings Ltd. 2014 Semi-Annual Report
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
Owner’s equity attributable to the parent company
Paid up
Total
Items capital Less: Generic Minority
Capital Special Surplus Retained owners’
(or shares in risk Others equity
reserve reserve reserve earnings equity
capital stock reserve
stock)
I. Ending balance of the previous 392,767, 525,506, 156,714, 469,706, -8,260,8 2,384,907. 1,538,819,5
year 870.00 952.78 094.20 600.67 33.09 19 91.75
Plus: Change in accounting
policy
Correction of previous
errors
Others
II. Opening balance of the report 392,767, 525,506, 156,714, 469,706, -8,260,8 2,384,907. 1,538,819,5
year 870.00 952.78 094.20 600.67 33.09 19 91.75
III. Decrease/increase of the report 49,007,0 2,256,19 -1,292,966. 49,970,311.
year (decrease is stated with “-“) 86.10 1.67 01 76
88,283,8 88,383,300.
(I) Net profit 99,427.70
73.10 80
2,256,19 2,263,797.9
(II) Other comprehensive income 7,606.29
1.67 6
88,283,8 2,256,19 90,647,098.
Subtotal of the above (I) and (II) 107,033.99
73.10 1.67 76
(III) Owners’ input and decrease of -1,400,000. -1,400,000.
capital 00 00
-1,400,000. -1,400,000.
1. Capital invested by the owners
00 00
2. Amount of payment for shares
charged to owners’ equity
3. Others
-39,276, -39,276,787
(IV) Profit distribution
787.00 .00
1. Provision of surplus reserve
2. Provision of general risk reserve
3. Distribution to the owners (or -39,276, -39,276,787
58
FIYTA Holdings Ltd. 2014 Semi-Annual Report
shareholders) 787.00 .00
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, 525,506, 156,714, 518,713, -6,004,6 1,091,941. 1,588,789,9
period 870.00 952.78 094.20 686.77 41.42 18 03.51
Amount of Previous Year
In CNY
Amount of Previous Year
Owner’s equity attributable to the parent company
Paid up
Total
Items capital Less: Generic Minority
Capital Special Surplus Retained owners’
(or shares in risk Others equity
reserve reserve reserve earnings equity
capital stock reserve
stock)
I. Ending balance of the previous 392,767, 525,506, 148,587, 386,984, -7,169,5 2,407,597. 1,449,085,2
year 870.00 952.78 680.61 676.78 55.04 94 23.07
Plus: Retroactive adjustment
arising from consolidation of the
enterprises under common control
Plus: Change in accounting
policy
Correction of previous
errors
Others
II. Opening balance of the report 392,767, 525,506, 148,587, 386,984, -7,169,5 2,407,597. 1,449,085,2
year 870.00 952.78 680.61 676.78 55.04 94 23.07
III. Decrease/increase of the report 8,126,41 82,721,9 -1,091,2 89,734,368.
-22,690.75
year (decrease is stated with “-“) 3.59 23.89 78.05 68
130,125, 130,125,019
(I) Net profit -104.67
124.48 .81
(II) Other comprehensive income -1,091,2 -22,586.08 -1,113,864.1
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
78.05 3
130,125, -1,091,2 129,011,155
Subtotal of the above (I) and (II) -22,690.75
124.48 78.05 .68
(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
8,126,41 -47,403, -39,276,787
(IV) Profit distribution
3.59 200.59 .00
8,126,41 -8,126,4
1. Provision of surplus reserve
3.59 13.59
2. Provision of general risk reserve
3. Distribution to the owners (or -39,276, -39,276,787
shareholders) 787.00 .00
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, 525,506, 156,714, 469,706, -8,260,8 2,384,907. 1,538,819,5
period 870.00 952.78 094.20 600.67 33.09 19 91.75
Legal Representative: Lai Weixuan Chief Financial Officer: Hu Xinglong Manager of the
Accounting Dept: Hu Xinglong
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
8. 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: Total
Items capital (or Capital Special Surplus Generic risk Retained
shares in owners’
capital reserve reserve reserve reserve earnings
stock equity
stock)
I. Ending balance of the previous 392,767,87 531,162,49 156,714,09 341,134,31 1,421,778,7
year 0.00 3.88 4.20 6.88 74.96
Plus: Change in accounting
policy
Correction of previous
errors
Others
II. Opening balance of the report 392,767,87 531,162,49 156,714,09 341,134,31 1,421,778,7
year 0.00 3.88 4.20 6.88 74.96
III. Decrease/increase of the report 66,922,683. 66,922,683.
year (decrease is stated with “-“) 46 46
106,199,47 106,199,470
(I) Net profit
0.46 .46
(II) Other comprehensive income
106,199,47 106,199,470
Subtotal of the above (I) and (II)
0.46 .46
(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
-39,276,787 -39,276,787
(IV) Profit distribution
.00 .00
1. Provision of surplus reserve
2. Provision of general risk reserve
3. Distribution to the owners (or -39,276,787 -39,276,787
shareholders) .00 .00
4. Others
(V) Internal carry-forward of owners’
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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 392,767,87 531,162,49 156,714,09 408,057,00 1,488,701,4
period 0.00 3.88 4.20 0.34 58.42
Amount of Previous Year
In CNY
Amount of Previous Year
Paid up
Less: Total
Items capital (or Capital Special Surplus Generic risk Retained
shares in owners’
capital reserve reserve reserve reserve earnings
stock equity
stock)
I. Ending balance of the previous 392,767,87 531,162,49 148,587,68 307,273,38 1,379,791,4
year 0.00 3.88 0.61 1.61 26.10
Plus: Change in accounting
policy
Correction of previous
errors
Others
II. Opening balance of the report 392,767,87 531,162,49 148,587,68 307,273,38 1,379,791,4
year 0.00 3.88 0.61 1.61 26.10
III. Decrease/increase of the report 8,126,413.5 33,860,935. 41,987,348.
year (decrease is stated with “-“) 9 27 86
81,264,135. 81,264,135.
(I) Net profit
86 86
(II) Other comprehensive income
81,264,135. 81,264,135.
Subtotal of the above (I) and (II)
86 86
(III) Owners’ input and decrease of
capital
1. Capital invested by the owners
2. Amount of payment for shares
charged to owners’ equity
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
3. Others
8,126,413.5 -47,403,200 -39,276,787
(IV) Profit distribution
9 .59 .00
8,126,413.5 -8,126,413.
1. Provision of surplus reserve
9 59
2. Provision of general risk reserve
3. Distribution to the owners (or -39,276,787 -39,276,787
shareholders) .00 .00
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 392,767,87 531,162,49 156,714,09 341,134,31 1,421,778,7
period 0.00 3.88 4.20 6.88 74.96
Legal Representative: Lai Weixuan Chief Financial Officer: Hu Xinglong Manager of the
Accounting Dept: Hu Xinglong
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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.
Ended June 30, 2014, the Company accumulatively issued total capital stock of 392,767,870 shares.
The principal business activities of the Company and its subsidiaries (collectively the Group) 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 AVIC International Holdings Limited 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 financial statements were approved by the Board of Directors of the Company for issuing on August
22, 2014.
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FIYTA Holdings Ltd. 2014 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, 2014 and
such information as its operation results and cash flow of the first half year of 2014. 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. Accounting Period
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 June 30 of a year.
4. Functional currency for bookkeeping
Renminbi 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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
its premises is located, the other overseas subsidiaries, including Harmony World Watches International
Limited (World Watch International), one of the subsidiaries of Shenzhen 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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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. 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 Offsettable 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 Offsettable 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. Specific Accounting Policy for Disposal of Equity in Steps Up to Loss of the Control Power
(1) Principle for judging “One-Package Transaction”.
Inapplicable
(2) Method for accounting treatment of the “One-Package Transaction”
Inapplicable
(3) Method for accounting treatment of Non “One-Package Transaction”
Inapplicable
7. 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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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
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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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”.
8. 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.
9. 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 difference 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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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.
10. Financial instruments
(1) Classification of Financial Instruments
Classification of financial assets
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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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 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.
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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 recorded 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.
(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
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Inapplicable
(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
11. 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 CNY 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
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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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 Provision proportion of other
accounts receivable (%) receivables (%)
Within 1 year (including 1 year, 5 5
the 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 Provision proportion of other
accounts receivable (%) receivables (%)
Grouping of specific accounts - -
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
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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 unable 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 amount exceeding CNY 800,000.00 and
Criteria for basis or amount for judging significant
other receivable with single amount exceeding
single amount
CNY 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
Method for provision of reserve for bad debt with
credit risk characteristics. The accounts receivable
significant single amount on individual basis.
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
proding bad debt
Grouping Description Basis for determining grouping
reserve based on
grouping
Grouping based on the
Age Analysis Length of the accounting age
accounting age
Grouping of the Other methods The Company does not provide reserve for bad
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
designated accounts 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.
In the grouping, age analysis is used for provision of reserve for bad debts:
Provision proportion of the Provision proportion of other receivables
Age
accounts receivable (%) (%)
Within 1 year (including 1
5.00% 5.00%
year)
1 to 2 years 10.00% 10.00%
2 to 3 years 30.00% 30.00%
Over 3 years 50.00% 50.00%
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
Grouping of the designated accounts
of 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 present value of
Reason of providing reserve for
future cash flow lower than the book value and reserve for bad
bad debt on individual basis
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.
12. Inventories
(1) Classification
Inventories mainly include raw materials, goods in process, commodity stocks, etc.
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(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 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.
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(4) Inventory System
The stock-taking system for inventories is perpetual inventory system.
(5) Amortization of low-value consumption goods and packing materials
Low-value consumption goods
Amortization method: One-off write-off method.
Packing materials
Amortization method: One-off write-off method.
13. 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 equity 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.
(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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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 commencing from the date of purchase (or date of consolidation) based
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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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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.
14. 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.
15. 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.
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(2) Recognition basis and pricing method for the fixed assets rented on financing basis
Inapplicable
(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 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 Annual depreciation rate
Categories Residual ratio (%)
(years) (%)
Housing and buildings 20-35 5.00% 2.7-4.8
Machines & equipment 10 5.00%-10.00% 9-9.5
Electronic equipment 5 5.00% 19
Motor vehicles 5 5.00% 19
Other equipment 5 5.00% 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
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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.
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.
16. 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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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.
17. 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
The Group starts capitalization of the loan expenses when all the following conditions have been satisfied:
① Asset expenditure has incurred. Asset expenditure includes the cash paid for purchase/construction
or production of an asset, transfer of a non-cash asset or expense incurred in formation of an
interest-bearing liability which all comply with the conditions for capitalization. ② Borrowing expenses
have already incurred; ③ the purchase or production activity necessary for the asset to reach the
predicted usable or sellable status have already started.
(3) Capitalization suspension period
The Group suspends the capitalization of loan expenses when an asset in compliance with the
conditions for capitalization has experienced abnormal interruption in process of purchase/construction
or production while the interruption exceeds three months. The loan expenses incurred during the
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
suspension period is recognized as the cost and counted to the current gain and loss until the
purchase/construction or production activity restarts.
(4) Calculation of the amount of loan expense capitalized
The Group determines the capitalization amount according to the following provisions for the interest of
each fiscal period (including discount or amortization of premium):
① For the special purpose loan for purchase/construction or production of an asset which satisfies the
capitalization conditions, the amount is determined with the interest expense of the special loan actually
incurred during the very period less the interest income of the unused part of the loan deposited with
bank as received or the return on investment earned from the provisional investment with the unused
part of the loan.
A special purpose loan refers to a loan borrowed exclusively for purchase/construction or production of
an asset which satisfies the capitalization conditions.
② In case a general loan has been occupied for purchase/construction or production of an asset which
satisfies the capitalization conditions, the interest amount of the general loan which should be capitalized
is determined based on the weighted average of the asset expenditure for the amount of the
accumulative asset expenditure exceeding the part of the special purpose loan multiplied by the
capitalization rate of a general loan as occupied. The capitalization rate should be determined according
to the weighted average interest rate of a general loan.
Capitalization duration refers to the period from the time point of starting capitalization of loan expense to
the time point of ending the capitalization with the duration of suspension of the capitalization of loan
expense exclusive.
18. Biological assets
Inapplicable
19. Oil and gas assets
Inapplicable
20. 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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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 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.
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
(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.
(3) For an intangible asset originated from the contractual rights or other legal rights, its service life does
not exceed the time limit of the contractual rights or other legal rights; if the contractual rights or other
legal rights can be extended due to renewal of the contract upon expiry while there is evidence showing
that contract renewal for the enterprise does not need payment of big costs, the contract renewal period
should be counted to the service life. In case there is no service life specified in the contract or any law,
relevant experts should be engaged for verification with consideration of various conditions in a
comprehensive way, or it is necessary to make comparison with the conditions of the enterprises of the
same industry; and determine the time limit of the intangible asset which may bring about future
economy to the Company.
Basis for judgment of intangible assets with indefinite service life
The Group regards an intangible asset unforeseeable to bring about future economic benefit to the
Company in future as an intangible assert 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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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;
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.
21. 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.
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22. Assignment of the assets with buy-back conditions
Inapplicable
23. 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.
24. Share payment and equity instrument
(1) Types of share payment
Inapplicable
(2) Determination of the fair value of equity instrument
Inapplicable
(3) Basis for determining the best estimate of executable equity instrument
Inapplicable
(4) Accounting treatment in connection with implementation, amendment and/or termination of a
share payment plan
Inapplicable
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
25. Repurchasing the Company’s shares
Inapplicable
26. 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 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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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
The Group determines the contract completion progress according to the following provisions: ①
proportion of the contract cost actually incurred accumulatively in the total predicted costs of the contract;
② proportion of the contract work volume completed already in the total predicted work volume of the
contract; ③ when it is impossible to determine the contract completion progress according to the
aforesaid two ways, a professional should be engaged for scientific determination on site to determine
the actual completion progress.
27. Government 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 Policy
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.
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28. Deferred income tax asset and deferred income tax liability
(1) Basis for recognition of deferred income tax assets
For the Offsettable 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 Offsettable 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 Offsettable provisional difference within the limit of the taxable income
amount which can be used to offset the Offsettable provisional difference.
For the Offsettable 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 Offsettable 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 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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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
Inapplicable
(3) Accounting process for sale and leaseback
Inapplicable
30. Assets for sale held by the Company
(1) Criteria for recognizing the assets held for sale
Inapplicable
(2) Accounting process for the assets held for sale
Inapplicable
31. Asset securitization business
Inapplicable
32. Hedging Accounting
Inapplicable
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
33. Change in the Principal Accounting Policy and Accounting Estimates
Inapplicable
(1) Change of the accounting policy
Inapplicable
(2) Change of the accounting estimates
Inapplicable
34. Correction of previous accounting errors
Inapplicable
35. 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 experience 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.
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
(2) Provision for price falling of famous brand watches
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 salability 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 proper discount rate is chosen to determine the present value of future cash
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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 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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
The Company and its domestic
subsidiaries are general VAT
payers and the taxable VAT is
Value-added tax 17%
the balance of the current
output VAT less the Offsettable
input VAT.
For the imported or self-made
high-grade watches, the
Company and its domestic
Consumption tax 20%
subsidiaries pay consumption
tax based on 20% of the
taxation base.
The Company and its
subsidiaries pay business tax
for the housing rental income,
Business tax income from offering labor 5%
service and the income from
use of the assigned assets at
rate of 5%
Urban maintenance and construction 7% of the turnover tax actually
7%
tax paid
Enterprise income tax Taxable amount of income 15%-30%
The educational surtax is based
on 3% of the turnover tax
actually paid; the local
Educational surtax and local
educational surcharges is 2% and 3%
educational surcharges
based on 2% of the turnover tax
actually paid.
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 property tax for its property 1.2%
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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
The Company and its Subsidiaries Income tax Income tax
rate of the current rate of the
year previous year
The Company （Note①②⑤） 25% 25%
HARMONY （Note①⑤） 25% 25%
Shenzhen FIYTA Sophisticated Timepieces 15% 15%
Manufacture Co., Ltd.（FIYTA Manufacture.）（Note②③）
FIYTA Hong Kong Limited （Note④） 16.5% 16.5%
68-Station Limited（Note④） 16.5% 16.5%
LIANGYA（Note④） 16.5% 16.5%
BAODING（Note④） 16.5% 16.5%
World Watches International（Note④） 16.5% 16.5%
Shenzhen FIYTA Technology Development Co., Ltd. 15% 25%
（FIYTA Technology）（Note②③）
Shenzhen Symphony Trading Co., Ltd.（Trading Co.） 25% 25%
（Note⑤）
Beijing Henglianda Timepieces Co., Ltd.(Henglianda) 25% 25%
（Note⑤）
Kunming Lishan Department Store Co., Ltd. (Lishan 25% 25%
Department Store) （Note⑤）
Harbin World Watches Distribution Co., Ltd. （Harbin 25% 25%
Co. ) （Note⑤）
Shenzhen Harmony Culture Communication Co., Ltd. 25% 25%
（Culture Co.) （Note⑤）
Emile Chouriet (Shenzhen) Co., Ltd.(Emile Chouriet 25% 25%
Shenzhen) （Note⑤）
FIYTA Sales Co., Ltd.（FIYTA Sales）（Note①⑤） 25% 25%
Liaoning Hengdarui Commercial & Trade Co., Ltd. 25% 25%
（Hengdarui）（Note⑤）
The Swiss Company（Note⑥） 30% 30%
2. Preferential Tax Policies and Approval Documents
Note①: 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 head office make final settlement for another 50% with
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
Shenzhen Municipal Office of SAT;
Note②: 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 FIYTA Manufacture’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.
Note③: 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;
Note④: Such companies are registered in Hong Kong and apply the profit tax in Hong Kong with
applicable tax rate of 16.50%;
Note⑤: 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%;
Note⑥: 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
VI. Enterprise Consolidation and Consolidated Financial Statements
1. About subsidiaries
(1) Subsidiaries acquired by means of establishment or investment
In CNY
Actual Balance of Amount in Balance
Are the
investment other items Shareholdin Proportion of Minority the minority of the
Subsidiary Place of Business Registered Business statements
at the end of which g proportion voting power shareholder shareholder owner’s
type Registration type Capital Scope consolidated
the reporting substantially (%) (%) s’ equity s’ equity equity of the
(Y/N)
period composes used for parent
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
net offsetting company
investment minority offsetting the
in the shareholder loss shared
subsidiary s’ gain and by minority
loss shareholder
s in the
reporting
period
exceeding
the share
enjoyed in
the owner’s
equity at
year
beginning
Purchase
and sales of
watches and
Controlled 600,000,000 601,307,200
HARMONY Shenzhen Commerce spares and 0.00 100.00% 100.00% Yes 0.00 0.00 0.00
by stock .00(CNY) .00
parts,
repairing
service
Producing
various
watches and
movements,
FIYTA
Controlled 10,000,000. spares and 10,000,000.
Manufacture Shenzhen Manufacture 0.00 100.00% 100.00% Yes 0.00 0.00 0.00
by stock 00(CNY) parts, 00
.
sophisticate
d watches
and repair
service
FIYTA Hong
Controlled 65,060,000. Trade and 55,367,520.
Kong Hong Kong Commerce 0.00 100.00% 100.00% Yes 0.00 0.00 0.00
by stock 00(HKD) investment 00
Limited
Sales of
68-Station Controlled 7,800,000.0 watches, 4,107,924.0 1,091,941.1
Hong Kong Commerce 0.00 60.00% 60.00% Yes 0.00 0.00
Limited by stock 0(HKD) domestic 0 8
trade
Purchase
Controlled 500,000.00( and sales of
Harbin Co. Harbin Commerce 500,000.00 0.00 100.00% 100.00% Yes 0.00 0.00 0.00
by stock CNY) watches and
parts;
100
FIYTA Holdings Ltd. 2014 Semi-Annual Report
watches
repairing.
sales of
watches and
Controlled 30,000,000. 31,300,000.
Henglianda Beijing Commerce components 0.00 100.00% 100.00% Yes 0.00 0.00 0.00
by stock 00(CNY) 00
, repairing
services
R & D,
production
and sales of
watches,
production,
FIYTA Controlled 10,000,000. machining, 10,000,000.
Shenzhen Manufacture 0.00 100.00% 100.00% Yes 0.00 0.00 0.00
Technology by stock 00 sales and 00
technology
developmen
t of
sophisticate
d parts.
Sales of
clocks and
watches and
gifts and
Controlled 5,000,000.0 consultation 5,000,000.0
FIYTA Trade Shenzhen Commerce 0.00 100.00% 100.00% Yes 0.00 0.00 0.00
by stock 0 of relevant 0
information
and other
domestic
trading
Cultural
activity
Controlled planning,
Cultural Co. Shenzhen Commerce 500,000.00 500,000.00 0.00 100.00% 100.00% Yes 0.00 0.00 0.00
by stock devoting to
advertiseme
nt business
Wholesale,
import and
export of
Emile watches,
Controlled 5,500,000.0 4,376,000.0
Chouriet Shenzhen Commerce watch 0.00 100.00% 100.00% Yes 0.00 0.00 0.00
by stock 0 0
(Shenzhen) spares and
parts,
jewelry,
ornaments
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
and the
supplement
ary
business;
after-sale
repairing
service of
watches
World Retail and
Controlled 10,000,000. 8,377,000.0
Watches Hong Kong Commerce repairing 0.00 100.00% 100.00% Yes 0.00 0.00 0.00
by stock 00 0
International services
design, R &
D and sales
of various
watches,
timing
instruments
and spares
Controlled 50,000,000. 50,000,000.
FIYTA Sales Shenzhen Commerce and 0.00 100.00% 100.00% Yes 0.00 0.00 0.00
by stock 00(CNY) 00
accessory
parts, sales
of jewelry
and
ornaments;
import &
export
Other notes to the subsidiaries acquired by means of establishment or investment, etc.
Inapplicable
2) Subsidiaries under the Common Control Acquired through Enterprise Consolidation
In CNY
Balance of
Amount in the owner’s
Balance of
the minority equity of the
other items
shareholder parent
which
Are the s’ equity company
Actual substantially Shareholdin Proportion of Minority
Full Name of Subsidiary Place of Business Registered Business statements used for offsetting the
investment composes g proportion voting power shareholder
Subsidiaries type Registration type Capital Scope consolidated offsetting loss shared
at year end net (%) (%) s’ equity
(Y/N) minority by minority
investment
shareholder shareholder
in the
s’ gain and s in the
subsidiary
loss reporting
period
102
FIYTA Holdings Ltd. 2014 Semi-Annual Report
exceeding
the share
enjoyed in
the owner’s
equity at
year
beginning
Wholesale,
retail and
repairing of
watches and
accessory
parts,
electronic
Liaoning
products,
Hengdarui Equity-contr
51,000,000. communicati 56,001,000.
Commercial olled Shenyang Commerce 0.00 100.00% 100.00% yes 0.00 0.00 0.00
00(CNY) on 00
& Trade Co.,
equipment
Ltd.
and
materials,
general
merchandis
e, property
managemen
t and lease
Other notes to the subsidiaries acquired by means of consolidation of enterprises under the common
control, etc.
Inapplicable
(3) Subsidiaries acquired through consolidation of the enterprises not under the same control
In CNY
Amount in Balance of
Balance of minority the owner’s
other items shareholder equity of the
Amount actually Consolidate s’ equity parent
Full Names
Subsidiary Place of Business Registered Business actually made up to Shareholdin Proportion of d Minority used to company
of
type Registration type capital Scope invested at net g proportion voting power statement ? equity write-down offsetting the
Subsidiaries
year end investment Yes/No minority loss shared
to the shareholder by minority
subsidiaries s’ gain and shareholder
loss s in the
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
reporting
period
exceeding
the share
enjoyed in
the owner’s
equity at
year
beginning
Kunming Domestic
Lishan trading and
Controlled 5,000,000.0 1,200,000.0
Department Kunming Commerce materials 0.00 100.00% 100.00% Yes 0.00 0.00 0.00
by stock 0(CNY) 0
Store Co., supply and
Ltd. sale
Production,
manufacture
The Swiss Controlled 5,000,000.0 and sales of 39,396,251.
Switzerland Commerce 0.00 100.00% 100.00% Yes 0.00 0.00 0.00
Company by stock 0(CHF) Emile 10
Chouriet
watches
Other notes to the subsidiaries acquired by means of consolidation of enterprises not under the common
control, etc.
Inapplicable
2. Operating entities with the control power formed by special purpose entity or through
entrusted operation or tenancy
Inapplicable
3. Note to Change in the Consolidation Scope
Note to Change in the Consolidation Scope
Shenzhen World Watches Center Co., Ltd. (hereinafter referred to as “World Watches Center”) used to
be a joint venture of the Group. According to the agreement entered into between the Group and
Shenzhen Shenhang Avionics Co., Ltd. (hereinafter referred to as Shenhang Avionics), another
shareholder of World Watches Center). Shenhang Avionics enjoyed fixed income every year
commencing from 2003 but did not participate in the operation of the company. The Group actually
exclusively controls the finance, operation and management of the World Watches Center. Therefore,
the company was placed in the Group’s consolidation scope. The company closed due to the removal of
its premises in 2008.
During the reporting period, World Watches Center completed the procedures of cancellation on May 5,
2014 and has no longer been placed in the consolidation scope. This event has no significant influence
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
upon the Company’s overall production and operation and its performances during the reporting period.
Inapplicable
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
Subsidiaries, special purpose principals and entities with the control power formed by means of
entrusted operation or lease, ect. newly included in the consolidation scope during the reporting period.
Inapplicable
Subsidiaries, special purpose principals and entities with the control power formed by means of
entrusted operation or lease, etc. no longer included in the consolidation scope during the reporting
period.
In CNY
Net profit from the year
Net asset as at the date of
Name beginning to the date of
disposal
disposal
Shenzhen World Watches Center Co., Ltd. 0.00 136,218.67
Other note to the principal(s) newly included in the consolidation scope and principal(s) no longer
included in the consolidation scope.
World Watches Center closed due to the removal of its premises in 2008. During the reporting period, it
completed the procedures of cancellation on May 5, 2014 and has no longer been placed in the
consolidation scope. This event has no significant influence upon the Company’s overall production and
operation and its performances during the reporting period.
5. Consolidation of the enterprises under the common control incurred in the reporting period
Inapplicable
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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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
Items Assets and Liabilities
June 30, 2014 December 31, 2013
FIYTA Hong Kong Limited HKD 1 = CNY 0.7938 HKD 1 = CNY 0.7862
World Watches International HKD 1 = CNY 0.7938 HKD 1 = CNY 0.7862
The Swiss Company S.FR. 1 = CNY 6.9738 S.FR. 1 = CNY 6.8336
Items Revenue, expenses and cash flow items
January to June, 2014 January to June, 2013
FIYTA Hong Kong Limited HKD 1 = CNY 0.7900 HKD 1 = CNY 0.8037
World Watches International HKD 1 = CNY 0.7900 HKD 1 = CNY 0.8037
The Swiss Company S.FR. 1 = CNY 6.9037 1 瑞士法郎= CNY 6.6627
Note: 68-Station Limited is a subsidiary of FIYTA Hong Kong Limited, BAODING and LIANGYA are
operating entities controlled by FIYTA Hong Kong Limited, and the exchange rate and way of conversion
were the same as FIYTA Hong Kong Limited.
VII. Notes to the principal items in the consolidated financial statements
1. Monetary fund
In CNY
End of the Reporting Period Beginning of the reporting period
Items Amount in foreign Conversion Amount in foreign Conversion
Amount in CNY Amount in CNY
currency rate currency rate
Cash on hand -- -- 664,850.83 -- -- 487,926.67
CNY -- -- 641,266.21 -- -- 422,048.31
HKD 365.83 0.7938 290.40 4,697.33 0.7862 3,693.04
US$ 598.00 6.1528 3,679.37 598.00 6.0969 3,645.95
Euro 2,024.45 8.3946 16,994.45 5,587.20 8.4189 47,038.08
Swiss Franc 375.75 6.9738 2,620.41 1,683.05 6.8336 11,501.29
106
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Bank deposit: -- -- 159,173,385.30 -- -- 107,168,563.21
CNY -- -- 146,049,357.74 -- -- 95,824,234.81
HKD 9,381,972.05 0.7938 7,447,409.41 9,135,662.45 0.7862 7,182,542.68
US$ 206,751.63 6.1528 1,272,101.43 213,460.48 6.0969 1,301,410.16
Swiss Franc 631,580.59 6.9738 4,404,516.72 418,575.21 6.8336 2,860,375.56
Other Monetary Fund: -- -- 5,520.86 -- -- 6,620.86
CNY -- -- 5,520.86 -- -- 6,620.86
Total -- -- 159,843,756.99 -- -- 107,663,110.74
The accounts with recovery risks due to application restrictions such as mortgage, pledge or freezing or
being deposited abroad, should be explained separately
Inapplicable
2. Transactional financial assets
(1) Transactional financial assets
Inapplicable
(2) Transactional financial assets with restriction in realization
Inapplicable
(3) Note to Hedging Instrument and the Relevant Hedging Transaction
Inapplicable
3. Notes receivable
(1) Classification of Notes Receivable
In CNY
Beginning of the reporting
Categories End of the Reporting Period
period
Bank acceptance 2,200,559.00 100,000.00
Trade acceptance 16,742,100.00 7,000,000.00
Total 18,942,659.00 7,100,000.00
(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
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
Inapplicable
5. Interest receivable
(1) Interest receivable
Inapplicable
(2) Overdue interest
Inapplicable
(3) Note to 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
Categories Book balance Bad debt reserve Book balance Bad debt reserve
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Accounts receivable for which bad debt reserve has been provided based on the combination
Grouping based on the 212,755,716 6,920,862.5 143,086,0
48.73% 3.25% 43.09% 7,193,141.49 5.03%
accounting age .24 1 26.61
Grouping of the designated 223,463,746 188,564,4
51.18% 56.79%
accounts .02 54.07
436,219,462 6,920,862.5 331,650,4
Subtotal of grouping 99.91% 1.59% 99.88% 7,193,141.49 2.17%
.26 1 80.68
Accounts receivable with
insignificant single amount 401,267.1
401,267.10 0.09% 401,267.10 100.00% 0.12% 401,267.10 100.00%
and provision of bad debt 0
reserve on individual basis
436,620,729 7,322,129.6 332,051,7
Total -- -- -- 7,594,408.59 --
.36 1 47.78
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
108
FIYTA Holdings Ltd. 2014 Semi-Annual Report
analysis
In CNY
End of the Reporting Period Beginning of the reporting period
Book balance Book balance
Age Bad debt
Proportio Bad debt reserve Proportio
Amount Amount reserve
n n
Within a year
Including: -- -- -- -- -- --
140,672,904.4
Within a year 210,474,323.05 98.93% 6,670,024.29 98.31% 6,951,829.27
0
Subtotal within 140,672,904.4
210,474,323.05 98.93% 6,670,024.29 98.31% 6,951,829.27
a year 0
1 to 2 years 2,167,898.69 1.02% 216,789.87 2,413,122.21 1.69% 241,312.22
2 to 3 years 113,494.50 0.05% 34,048.35 0.00%
Over 3 years 0.00 0.00% 0.00 0.00%
143,086,026.6
Total 212,755,716.24 -- 6,920,862.51 -- 7,193,141.49
1
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
223,463,746.02 0.00
accounts
Total 223,463,746.02 0.00
At the end of the reporting period, accounts receivable with insignificant single amount and provision of
bad debt reserve on individual basis:
In CNY
Contents of Provision
Book balance Bad debt reserve Reason of provision
accounts receivable proportion (%)
Doubtful
401,267.10 401,267.10 100.00% Unrecoverable
accounts/bad debt
Total 401,267.10 401,267.10 -- --
(2) Accounts receivable reversed or recovered in the reporting period
Inapplicable
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
(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
Organization Relationship with
Amount Year total accounts
Names the Company
receivable (%)
Fuzhou Dayang
General
Non-Related Party 5,853,692.72 Within a year 1.34%
Merchandise Co.,
Ltd.
Century Ginwa
Urumqi Shopping
Non-Related Party 5,742,092.58 Within a year 1.32%
Center Co., Ltd.
Rainbow Controlled by the
Supermarket Co., same parent 4,085,198.33 Within a year 0.94%
Ltd. company
BILLION GENESIS
ENTERPRISE Non-Related Party 3,876,219.44 Within a year 0.89%
LIMITED
China Resource
(Shenzhen) Co.,
Non-Related Party 3,677,548.70 Within a year 0.84%
Ltd. (Omega
Flagship Shop)
Total -- 23,234,751.77 -- 5.33%
(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 4,085,198.33 0.94%
parent company
AVIC The Company’s eventual 630,779.00 0.14%
110
FIYTA Holdings Ltd. 2014 Semi-Annual Report
controller
Shennan Circuit Co., Controlled by the same
2,305,125.44 0.53%
Ltd. parent company
CATIC Electronic
Controlled by the same
Measuring Instruments 34,216.60 0.01%
parent company
Co., Ltd.
Total -- 7,055,319.37 1.62%
(7) Accounts receivable eventually recognized
Inapplicable
(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
Proporti Proporti Proportio Proport
Amount Amount Amount Amount
on on n ion
Other receivables with provision of bad debt reserve based on grouping
Grouping of the
42,441,93 2,171,414. 29,759,91 2,023,735.6
designated 83.47% 5.12% 70.09% 6.80%
6.03 66 8.66 7
accounts
Grouping based on 8,403,985. 12,700,45
16.53% 29.91%
the accounting age 49 7.11
Subtotal of 50,845,92 100.00 2,171,414. 42,460,37 2,023,735.6
4.27% 100.00% 4.77%
grouping 1.52 % 66 5.77 7
50,845,92 2,171,414. 42,460,37 2,023,735.6
Total -- -- -- --
1.52 66 5.77 7
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.
Inapplicable
In CNY
Age End of the Reporting Period Beginning of the reporting period
111
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Book balance Book balance
Bad debt
Propo Propo Bad debt reserve
Amount reserve Amount
rtion rtion
Within a year
Including:
88.97 89.03
Within a year 38,043,002.93 1,160,926.70 26,494,988.82 1,335,820.98
% %
Subtotal within a 88.97 89.03
38,043,002.93 1,160,926.70 26,494,988.82 1,335,820.98
year % %
1 to 2 years 2,309,043.16 5.40% 230,677.64 1,445,878.69 4.86% 144,587.87
2 to 3 years 1,805,737.30 4.22% 525,256.15 1,725,872.82 5.80% 517,762.65
Over 3 years 601,434.30 1.41% 254,554.17 93,178.33 0.31% 25,564.17
Total 42,759,217.69 -- 2,171,414.66 29,759,918.66 -- 2,023,735.67
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 8,403,985.49 0.00
Total 8,403,985.49 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
112
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Nature or content Proportion in the total other
Organization Names Amount
of the accounts receivables (%)
China Resource Shopping mall
3,135,144.00 6.17%
(Shenzhen) Co., Ltd. deposit
Shenzhen Airport Co., Shopping mall
1,124,513.00 2.21%
Ltd. deposit
Lifeng Commerce Co., Shopping mall
1,123,431.11 2.21%
Ltd. deposit
Shenzhen Yitian Holiday
Shopping mall
World Real Estate 1,090,523.00 2.14%
deposit
Development Co., Ltd.
Promotion charge
Astro swiss Time lirshed 1,030,314.99 2.03%
receivable
Shenzhen Chengtian Advertisement
800,000.00 1.57%
Advertisement Co., Ltd. deposit
Total 8,303,926.10 -- 16.33%
(6) Top Five Debtors of the Other Receivables
In CNY
Proportion in the
Organization Relationship with
Amount Year total other
Names the Company
receivables (%)
China Resource
(Shenzhen) Co., Non-Related Party 3,135,144.00 Within a year 6.17%
Ltd.
Shenzhen Airport
Non-Related Party 1,124,513.00 Within a year 2.21%
Co., Ltd.
Lifeng Commerce
Non-Related Party 1,123,431.11 Within a year 2.21%
Co., Ltd.
Shenzhen Yitian
Holiday World Real
Estate Non-Related Party 1,090,523.00 Within a year 2.14%
Development Co.,
Ltd.
Astro swiss Time
Non-Related Party 1,030,314.99 Within a year 2.03%
lirshed
Total -- 7,503,926.10 -- 14.76%
(7) Other receivables from related parties
Inapplicable
(8) Other receivable terminated for recognition
Inapplicable
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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
(10) Government subsidy recognized as account receivable at the end of the reporting period
Inapplicable
8. Advance Payment
(1) Advance payment presented based on age
In CNY
End of the Reporting Period Beginning of the reporting period
Age
Amount Proportion Amount Proportion
Within a year 26,169,202.80 86.53% 39,385,528.82 90.57%
Within a year 3,470,029.36 11.47% 3,501,516.25 8.05%
1 to 2 years 146,711.10 0.49% 143,958.00 0.33%
2 to 3 years 456,610.00 1.51% 456,610.00 1.05%
Over 3 years 30,242,553.26 -- 43,487,613.07 --
Note to the age of advance payments
Inapplicable
(2) Top Five Receivers of Advance Payment
In CNY
Organization Relationship with Causes of
Amount Time
Names the Company unsettlement
SAN SUN
Advance trade
INDUSTRIAL CO., Non-Related Party 13,296,350.79 Within a year
payment
LTD.
Beat Blattmann Advance trade
Non-Related Party 4,052,391.28 Within a year
Marketing payment
Liberty Time Center Advance trade
Non-Related Party 2,257,599.60 Within a year
GmbH payment
Sellita Watch CO Advance trade
Non-Related Party 1,622,823.91 Within a year
SA payment
Advance trade
Soprod SA Non-Related Party 815,244.30 Within a year
payment
Total -- 22,044,409.88 -- --
Note to the major organizations of advance payments
Inapplicable
114
FIYTA Holdings Ltd. 2014 Semi-Annual Report
(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
Items Provision for Provision for
Book balance Book value Book balance Book value
price falling price falling
Raw materials 128,537,978.38 7,641,903.65 120,896,074.73 122,362,922.04 4,886,794.86 117,476,127.18
Products in
13,310,042.38 0.00 13,310,042.38 19,607,611.43 0.00 19,607,611.43
process
25,982,428.2 1,948,190,940. 2,012,241,510. 1,986,259,082.
Goods in stock 1,974,173,368.85 25,982,428.24
4 61 56 32
33,624,331.8 2,082,397,057. 2,154,212,044. 2,123,342,820.
Total 2,116,021,389.61 30,869,223.10
9 72 03 93
(2) Provision for price falling of inventories
In CNY
Opening book Reserve provided Decrease in the reporting period
Categories Ending book balance
balance in the period Reversal Written-off
Raw materials 4,886,794.86 2,755,108.79 7,641,903.65
Products in process 0.00 0.00
Goods in stock 25,982,428.24 25,982,428.24
Total 30,869,223.10 2,755,108.79 33,624,331.89
(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 in
period the reporting period (%)
Net realizable value lower
Raw materials Inapplicable 0.00%
than the corresponding cost
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
Net realizable value lower
Goods in stock Inapplicable 0.00%
than the corresponding cost
Note to the inventories
Inapplicable
10. Other current assets
In CNY
Items End of the Reporting Period Beginning of the reporting period
Input VAT to be offset 4,324,363.65 23,781,515.54
Rent 2,843,396.19 3,759,382.17
Others 2,130,004.99 3,271,093.36
Total 9,297,764.83 30,811,991.07
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
(1) About the available-for-sale financial assets
Inapplicable
(2) Long term credit investment in the available-for-sale financial assets
Inapplicable
(3) Impairment of the available-for-sale financial assets
Inapplicable
(4) Change in impairment of the available-for-sale financial assets during the reporting period
Inapplicable
(5) Note to big falling or continuous falling of the fair value of the available-for-sale financial
assets at the end of the reporting period
Inapplicable
12. Held-to-maturity investments
(1) About the held-to-maturity investment
Inapplicable
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
(2) About the held-to-maturity investment sold or still undue in the reporting period
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 96,176,699. 14,710,516. 81,466,182. 52,972,924. 1,076,068.6
25.00% 25.00%
Industry 34 78 56 33 7
Co., Ltd.
Note to the significant difference between the joint ventures & associates and the Company in important
accounting policies and accounting estimate:
Inapplicable
15. Long-term equity investment
(1) Statement of Long Term Equity Investment
In CNY
Note to
Proportio the
n of the inconsist
Proportio
investee’ ence Reserve
n of the
s between for Cash
investee’ Reserve
Way of vote-bea the impairme dividend
Investee Investme Opening Increase/ Ending s shares for
calculati ring proportio nt in the
s nt costs balance decrease balance held by impairme
on shares n of the provided report
the nt
held by shares in in the period
Compan
the the period
y (%)
Compan investee
y (%) s held by
the
117
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Compan
y and the
voting
power
Shangha
i Watch Equity 39,916,5 43,237,9 -504,563 42,733,3
25.00% 25.00% - 0.00 0.00 0.00
Industry method 00.00 40.12 .21 76.91
Co., Ltd.
Xi’an
Tangche Cost 85,000.0 85,000.0 85,000.0
0.00 0.10% 0.10% - 0.00 0.00 0.00
ng Co., method 0 0 0
Ltd.
Shenzhe
n CATIC
Culture Cost 300,000. 300,000. 300,000. 300,000.
0.00 15.00% 15.00% - 0.00 0.00
Commun method 00 00 00 00
ication
Co., Ltd.
40,301,5 43,622,9 -504,563 43,118,3 300,000.
Total -- -- -- -- 0.00 0.00
00.00 40.12 .21 76.91 00
(2) About the ability of transferring fund to the investing company being restricted
Inapplicable
16. Investment Property Based Real Estate
(1) Investment property measured based on costs
In CNY
Increase in the Decrease in the
Items Opening book balance Ending book balance
reporting period reporting period
I. Total Book Costs 340,029,020.44 0.00 0.00 340,029,020.44
1. Housing and
340,029,020.44 0.00 0.00 340,029,020.44
buildings
2. Land use right 0.00 0.00 0.00 0.00
II. Total of
accumulative
depreciation and 104,793,335.68 4,571,872.94 0.00 109,365,208.62
accumulative
amortization
1. Housing and
104,793,335.68 4,571,872.94 0.00 109,365,208.62
buildings
2. Land use right 0.00 0.00 0.00 0.00
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
III. Total net book
value of the 235,235,684.76 -4,571,872.94 0.00 230,663,811.82
investment property
1. Housing and
0.00 0.00 0.00 0.00
buildings
2. Land use right 0.00 0.00 0.00 0.00
IV. Total
accumulative
amount of the
0.00 0.00 0.00 0.00
provision for
impairment of
investment property
1. Housing and
0.00 0.00 0.00 0.00
buildings
2. Land use right 0.00 0.00 0.00 0.00
V. Total book value
of the investment 235,235,684.76 -4,571,872.94 0.00 230,663,811.82
property
1. Housing and
235,235,684.76 -4,571,872.94 0.00 230,663,811.82
buildings
2. Land use right 0.00 0.00 0.00 0.00
In CNY
Reporting period
Depreciation and amortization amount during the
4,571,872.94
reporting period
(2) Investment property measured based on fair value
In CNY
Decrease in the
Fair value Increase in the reporting period
reporting period Fair value
at the
Property for at the end
beginning Gain/loss Turned to
Item self-use or of the
of the from be the
Purchased transfer-in Disposal reporting
reporting change of property for
of period
period fair value self-use
inventories
Describe the investment property whose measurement mode was changed or the investment property
for which the procedures for the certificate of title have not been completed and explain the reason why
the procedures for the certificate of title have not been completed and predict the time of handling the
procedures.
Inapplicable
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
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
I. Total Book Costs 430,826,947.41 23,647,355.33 490,923.60 453,983,379.14
Including: housing and
307,261,172.99 15,313,748.05 0.00 322,574,921.04
buildings
Machines &
44,810,836.22 5,220,236.81 0.00 50,031,073.03
equipment
Motor vehicles 14,308,808.47 427,507.64 330,843.00 14,405,473.11
Electronic
27,684,446.02 885,790.64 45,042.02 28,525,194.64
equipment
Others 36,761,683.71 1,800,072.19 115,038.58 38,446,717.32
New increase in Amount provided Ending balance
Opening book Decrease in the
-- the reporting in the reporting of the reporting
balance reporting period
period period period
II. Total accumulated
123,937,983.10 11,504,998.34 431,314.82 135,011,666.62
depreciation
Including: housing and
43,730,217.50 5,264,177.63 0.00 48,994,395.13
buildings
Machines &
21,028,668.56 1,758,597.58 0.00 22,787,266.14
equipment
Motor vehicles 9,533,984.29 875,704.71 333,300.85 10,076,388.15
Electronic
19,430,839.23 1,426,256.77 38,698.35 20,818,397.65
equipment
Others 30,214,273.52 2,180,261.65 59,315.62 32,335,219.55
Ending balance
Opening book
-- -- of the reporting
balance
period
III. Total net book value of
306,888,964.31 -- 318,971,712.52
fixed assets
Including: housing and
263,530,955.49 -- 263,530,955.49
buildings
Machines &
23,782,167.66 -- 23,782,167.66
equipment
Motor vehicles 4,774,824.18 -- 4,774,824.18
Electronic
8,253,606.79 -- 8,253,606.79
equipment
Others 6,547,410.19 -- 6,547,410.19
IV. Total provision for
--
impairment
Including: housing and --
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
buildings
Machines &
306,888,964.31 -- 318,971,712.52
equipment
Motor vehicles 263,530,955.49 -- 263,530,955.49
Electronic
23,782,167.66 -- 23,782,167.66
equipment
Others 4,774,824.18 -- 4,774,824.18
V. Total book value of
8,253,606.79 -- 8,253,606.79
fixed assets
Including: housing and
6,547,410.19 -- 6,547,410.19
buildings
Machines &
equipment
Motor vehicles
Electronic
equipment
Others
The depreciation amount in the reporting period was CNY11,504,998.34; the cost of the fixed assets
transferred in from the construction-in-process amounted to CNY 0.00.
(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
Predicted time of handling the
Cause of no certificate of title
Items procedures for the certificate of
being granted
title
Defects existing in the property
Office space of Harbin Branch unknown
right
Notes to the fixed assets
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
As at June 30, 2014, 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 343,713.12), the application for
the certificate of title failed;
As at June 30, 2014, the building with the original book value of CNY 26,929,577.43 (book value
amounting to CNY23,265,693.99) 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 Reserve for Reserve for
Book balance Book value Book balance Book value
impairment impairment
Guangming New Zone 19,872,445.1 19,872,445.1
0.00 6,608,187.55 0.00 6,608,187.55
Watch Base Project 2 2
Payment for improvement
of the driving machine of
the central air conditioning 282,000.00 0.00 282,000.00 0.00 0.00 0.00
and the cooling tower of
Xi’an FIYTA Building
20,154,445.1 20,154,445.1
Total 6,608,187.55 6,608,187.55
2 2
(2) Change of key construction-in-process project
In CNY
Including:
Proportion Accumulati
amount of Interest
Beginning Increase in of projects ve amount
Transferred interest capitalizatio End of the
of the the Other put into Progress of of the Funds
Items Budget in to the capitalizatio n rate in the Reporting
reporting reporting decrease practice in the project interest source
fixed asset n in the reporting Period
period period the budget capitalizatio
report period (%)
(%) n
period
Guangming
New Zone 300,000,00 6,608,187. 13,264,257 19,872,445
0.00 0.00 6.62% 基础建设 69,020.44 69,020.44 3.03% 自筹
Watch 0.00 55 .57 .12
Base
300,000,00 6,608,187. 13,264,257 19,872,445
Total 0.00 0.00 -- -- 69,020.44 69,020.44 -- --
0.00 55 .57 .12
Note to the change of the construction-in-process project
Inapplicable
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
(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
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 49,617,023.56 393,926.85 0.00 50,010,950.41
Land use right 34,854,239.40 0.00 0.00 34,854,239.40
Software system 4,397,962.64 393,926.85 0.00 4,791,889.49
Trademark use right 10,364,821.52 0.00 0.00 10,364,821.52
II. Total accumulated
13,448,411.84 720,075.39 0.00 14,168,487.23
amortization
Land use right 6,945,081.20 359,973.18 0.00 7,305,054.38
Software system 2,498,020.91 354,442.23 0.00 2,852,463.14
Trademark use right 4,005,309.73 5,659.98 0.00 4,010,969.71
III. Total net book value 36,168,611.72 -326,148.54 35,842,463.18
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
of intangible assets
Land use right 27,909,158.20 -359,973.18 27,549,185.02
Software system 1,899,941.73 39,484.62 1,939,426.35
Trademark use right 6,359,511.79 -5,659.98 6,353,851.81
Land use right
Software system
Trademark use right
III. Total book value of
36,168,611.72 -326,148.54 35,842,463.18
intangible assets
Land use right 27,909,158.20 -359,973.18 27,549,185.02
Software system 1,899,941.73 39,484.62 1,939,426.35
Trademark use right 6,359,511.79 -5,659.98 6,353,851.81
The amount amortized in the reporting period was CNY 720,075.39.
(2) Expenses for the Company’s development projects
Inapplicable
24. Goodwill
In CNY
Increase in the Decrease in Reserve for
Investees or matters Opening Ending
reporting the reporting impairment
forming the goodwill balance 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
Beginning of the Increase in the Amount amortized End of the Reasons of other
Items Other decrease
reporting period report period in the report period Reporting Period decreases
Cost for making
46,739,539.07 39,295,556.13 24,488,017.55 0.00 61,547,077.65
special counters
124
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Refurbishment 82,497,957.56 13,116,280.06 20,922,504.42 0.00 74,691,733.20
Endorsement fee 15,295,637.91 0.00 3,823,909.50 0.00 11,471,728.41
Others 2,009,551.04 0.00 1,684,352.01 0.00 325,199.03
Total 146,542,685.58 52,411,836.19 50,918,783.48 0.00 148,035,738.29 --
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
Beginning of the reporting
Items End of the Reporting Period
period
Deferred income tax asset:
Reserve for impairment of the assets 9,923,111.61 9,618,849.12
Organization costs 0.00 0.00
Offsettable loss 3,154,210.60 3,193,876.20
Offset of the internal unrealized profit 69,052,437.13 60,608,908.97
Deferred income 737,500.00 737,500.00
Subtotal 82,867,259.34 74,159,134.29
Deferred income tax liabilities:
Statement of unrecognized deferred income tax asset
In CNY
Beginning of the reporting
Items End of the Reporting Period
period
Offsettable provisional discrepancy 2,052,861.77 2,035,756.48
Offsettable loss 601,988.81 0.00
Deferred income 480,000.00 0.00
Total 3,134,850.58 2,035,756.48
The offsettable loss of the unrecognized deferred income tax shall be due in the following years.
Inapplicable
Statement of taxable discrepancy and offsettable discrepancy items
125
FIYTA Holdings Ltd. 2014 Semi-Annual Report
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 43,117,876.16 40,487,367.36
Offset of the internal unrealized profit 281,418,420.70 246,128,085.69
Deferred income 3,430,000.00 2,950,000.00
Offsettable loss 14,505,560.98 14,143,969.77
Subtotal 342,471,857.84 303,709,422.82
(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
Items mutual offsetting mutual offsetting
mutual offsetting after mutual
at the end of the at the beginning
at the end of the offsetting at the
reporting period of the reporting
reporting period beginning of the
period
reporting period
Deferred income tax asset 82,867,259.34 342,471,857.84 74,159,134.29 303,709,422.82
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
Inapplicable
27. Statement of Reserve for Impairment of Assets
In CNY
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 9,618,144.26 0.00 124,599.99 0.00 9,493,544.27
II. Reserve for price falling
30,869,223.10 2,755,108.79 33,624,331.89
of inventories
V. Provision for impairment
300,000.00 0.00 0.00 0.00 300,000.00
of long-term equity
126
FIYTA Holdings Ltd. 2014 Semi-Annual Report
investments
VI. Provision for impairment
0.00 0.00 0.00 0.00 0.00
of investment property
XIII. Provision for
1,735,756.48 0.00 0.00 0.00 1,735,756.48
impairment of goodwill
Total 42,523,123.84 2,755,108.79 124,599.99 0.00 45,153,632.64
Note to the statement of impairment of assets
Inapplicable
28. Other non-current assets
In CNY
Beginning of the reporting
Items End of the reporting period
period
China Tenth Metallurgy Group Limited
0.00 10,976,867.85
Corporation
Shentai Real Estate Development
31,500,000.00 21,500,000.00
Co., Ltd.
Total 31,500,000.00 32,476,867.85
Note to other non-current assets
Inapplicable
29. Short-term Borrowings
(1) Classification of Short-term Borrowings
In CNY
Beginning of the reporting
Items End of the Reporting Period
period
Secured borrowings 517,000,000.00 710,000,000.00
Credit borrowings 363,000,000.00 313,000,000.00
Total 880,000,000.00 1,023,000,000.00
Note to classification of the short-term borrowings
Note: For the Company’s borrowings amounting to CNY 250,000,000.00, HARMONY has offered
guarantee while for HARMONY’s borrowings amounting to CNY 267,000,000.00, the Company offered
guarantee.
(2) Short term borrowings already due but remaining outstanding
Inapplicable
30. Trading financial liabilities
Inapplicable
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
31. Notes Payable
Inapplicable
32. Accounts payable
(1) About accounts payable
In CNY
Beginning of the reporting
Items End of the Reporting Period
period
Trade accounts payable 146,599,176.69 210,748,187.96
Payables for materials 48,313,171.04 11,388,092.75
Engineering warranty fee payable 0.00 211,339.76
Total 194,912,347.73 222,347,620.47
(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
Creditors’ Names Amount Causes of outstanding
Shenzhen Peish Watch Co., Ltd. 316,709.55 未开具发票
Zhonglian Xianjin Iron & Steel Co., 104,953.85 未开具发票
Ltd.
Zhuzhou Zuanye Hard Alloy Sales 83,760.68 未开具发票
Co., Ltd.
Total 505,424.08
33. Advance Receipts
(1) About advance receipts
In CNY
Beginning of the reporting
Items End of the Reporting Period
period
Trade advance receipt 16,871,862.79 9,667,278.30
Total 16,871,862.79 9,667,278.30
(2) Advance receipts from the shareholder holding over 5% (including 5%) of the Company’s
voting shares in the reporting period
Inapplicable
128
FIYTA Holdings Ltd. 2014 Semi-Annual Report
(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 Ending book
Items
balance reporting period reporting period balance
I. Salaries,
bonus,
30,902,945.51 175,898,791.25 189,763,913.84 17,037,822.92
allowance and
subsidy
II. Staff’s
0.00 4,733,968.49 4,733,968.49 0.00
Welfare
III. Social
0.00 22,470,506.91 22,470,506.91 0.00
security
Including: 1.
Medical
0.00 5,617,082.97 5,617,082.97 0.00
insurance
premium
2. Basic
endowment
0.00 14,252,252.43 14,252,252.43 0.00
insurance
premium
3. Contribution
to the annuity 0.00 0.00 0.00 0.00
scheme
4.
Unemployment
0.00 1,027,047.48 1,027,047.48 0.00
insurance
premium
5. Occupational
insurance 0.00 278,304.83 278,304.83 0.00
premium
6. Maternity
insurance 0.00 885,781.96 885,781.96 0.00
premium
7. Others 0.00 410,037.24 410,037.24 0.00
IV. Public
reserve for 0.00 6,617,256.26 6,617,256.26 0.00
housing
V. of dismissal 0.00 0.00 0.00 0.00
VI. Others 270,866.64 3,754,254.80 3,712,587.00 312,534.44
Where: 1. Trade 270,866.64 3,606,927.77 3,565,259.97 312,534.44
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
union and
employee’s
education
budget
2. Others 0.00 147,327.03 147,327.03 0.00
Total 31,173,812.15 213,474,777.71 227,298,232.50 17,350,357.36
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 3,606,927.77, 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 35,725,128.24 23,538,538.96
Consumption tax 0.00 161,657.78
Business tax 613,151.49 701,932.65
Enterprise income tax 38,921,130.51 30,923,761.70
Individual income tax 634,643.59 698,803.51
Urban maintenance and construction tax 534,923.27 389,481.45
Property tax 287,520.10 257,112.75
Education surcharge 246,603.82 207,011.67
Stamp tax 246,902.69 293,628.46
Dyke protection surcharge 38,436.04 34,037.50
Others 210,357.91 422,208.83
Total 77,458,797.66 57,628,175.26
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.
Inapplicable
36. Interest payable
In CNY
Beginning of the reporting
Items End of the Reporting Period
period
130
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Interest of enterprise bonds 6,720,000.00 16,800,000.00
Interest payable of the short trm loans 2,487,600.91 2,622,859.82
Total 9,207,600.91 19,422,859.82
Note to the interest payable
Inapplicable
37. Dividend payable
In CNY
End of the reporting Beginning of the Cause of failure in payment
Description
period reporting period after one year overdue
Dividend for common shares
39,276,787.00 0.00
payable
Total 39,276,787.00 --
Note to dividend payable
Inapplicable
38. Other Payables
(1) About other payables
In CNY
Beginning of the reporting
Items End of the Reporting Period
period
Within a year 177,441,484.33 20,229,108.51
1 to 2 years 2,144,365.54 8,749,189.38
2 to 3 years 4,024,477.15 694,894.09
Over 3 years 7,774,496.78 8,781,742.32
Total 191,384,823.80 38,454,934.30
(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
In CNY
Beginning of the reporting
Organization name End of the reporting period
period
AVIC International Holdings Limited 150,000,000.00 0.00
Total 150,000,000.00 0.00
(3) Note to other payables with big amount with age exceeding 1 year
Creditors’ Names Amount Cause of Will it be repaid after
outstanding the reporting day?
131
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Shenzhen Tencent Computer System Co., Ltd. 5,142,001.36 Still in lease No
term
Oracle Software Research and Development 811,590.00 Still in lease No
(Shenzhen) Co., Ltd. term
CATIC Real Estate Co., Ltd. 424,800.00 Still in lease No
term
Shenzhen Good Family Sports Goods 414,630.00 Still in lease No
Franchise Co., Ltd. term
Shenzhen Honestar Electronics Co., Ltd. 375,144.00 Still in lease No
term
China Merchants Bank Co., Ltd. Shenzhen 349,692.00 Still in lease No
Technology Park Sub-branch term
Shenzhen Youli Self-service KARAOKE BAR 334,880.00 Still in lease No
Co.,Ltd. term
Shenzhen Orient Boiler Control Co.,Ltd. 318,491.60 Still in lease No
term
Shenzhen Yong’antang Chain Pharmacy Co., 301,644.00 Still in lease No
Ltd. term
Shenzhen CATIC Changtai Investment 221,712.00 Still in lease No
Development Co.,Ltd. term
Shenzhen Hangjian Engineering Cost 208,304.00 Still in lease No
Consultation Co.,Ltd. term
Total 8,902,888.96 - -
(4) Description of other payables with bigger amount
Creditors’ Names Amount Cause of Will it be repaid after
outstanding the reporting day?
Shenzhen Tencent Computer System Co., Ltd. 5,142,001.36 Still in lease No
term
Oracle Software Research and Development 811,590.00 Still in lease No
(Shenzhen) Co., Ltd. term
CATIC Real Estate Co., Ltd. 424,800.00 Still in lease No
term
Shenzhen Good Family Sports Goods 414,630.00 Still in lease No
Franchise Co., Ltd. term
Shenzhen Honestar Electronics Co., Ltd. 375,144.00 Still in lease No
term
China Merchants Bank Co., Ltd. Shenzhen 349,692.00 Still in lease No
Technology Park Sub-branch term
Shenzhen Youli Self-service KARAOKE BAR 334,880.00 Still in lease No
Co.,Ltd. term
132
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Shenzhen Orient Boiler Control Co.,Ltd. 318,491.60 Still in lease No
term
Shenzhen Yong’antang Chain Pharmacy Co., 301,644.00 Still in lease No
Ltd. term
Shenzhen CATIC Changtai Investment 221,712.00 Still in lease No
Development Co.,Ltd. term
Shenzhen Hangjian Engineering Cost 208,304.00 Still in lease No
Consultation Co.,Ltd. term
Total 8,902,888.96 - -
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
Long-term loan due within 1 year 39,695,000.00 39,310,000.00
Total 39,695,000.00 39,310,000.00
(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 39,695,000.00 39,310,000.00
Total 39,695,000.00 39,310,000.00
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 starting Loan expiry Interest rate
Loan suppliers Currency Amount in Amount in Amount in Amount in
date date (%)
foreign function foreign function
currency currency currency currency
Bank of China
November9, October 5,
(Hong Kong) HK$ 3.25% 30,000,000.00 23,817,000.00 30,000,000.00 23,586,000.00
2012 2014
Limited
133
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Bank of China
October 5, October 5,
(Hong Kong) HK$ 3.25% 20,000,000.00 15,878,000.00 20,000,000.00 15,724,000.00
2012 2014
Limited
Total -- -- -- -- -- 39,695,000.00 -- 39,310,000.00
Overdue loan of the long term loans due within 1 year:
Inapplicable
Description of long-term loan due within 1 year
Note: For the long term loan of FIYTA Hong Kong Limited amounting to CNY 39,695,000.00 due within a
year, the Company offered guarantee.
(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 14,807,907.72 4,924,394.22
Total 14,807,907.72 4,924,394.22
Note to other current liabilities
Inapplicable
42. Long term loan
(1) Classification of Long Term Loans
In CNY
Beginning of the reporting
Items End of the Reporting Period
period
Collateral Loans 7,174,355.35 7,293,022.01
Pledged loan 164,141,928.00 118,291,928.00
Secured loan 86,500,000.00 87,000,000.00
Credit loan -39,695,000.00 -39,310,000.00
Less: Long-term loan due within 1
218,121,283.35 173,274,950.01
year
Total
Note to classification of long term loans
134
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Note: AVIC International Holdings Limited offered guarantee for the Company’s loan amounting to CNY
5,361,928.00 while the Company offered guarantee for the loan borrowed by FIYTA Hong Kong Limited
amounting to CNY 158,780,000.00 (including the long term loan due within a year);
As stated in Note 17, the property with the book cost of CNY 26,929,577.43 (book value of CNY
23,265,693.99) was used as the collateral for the long term loan amounting to CNY 7,174,355.35.
(2)Top Five Lenders of the Long Term Loans
In CNY
End of the Reporting Beginning of the reporting
Period period
Loan Loan Loan expiry
Currency Interest rate Amount in Amount in Amount in Amount in
suppliers starting date date
foreign function foreign function
currency currency currency currency
Bank of
China November November 86,500,000. 86,500,000. 87,000,000. 87,000,000.
CNY 6.40%
Shenzhen 8, 2013 7, 2018 00 00 00 00
Branch
The
Export-Impo
rt Bank of December December
CNY 6.06% 361,928.00 361,928.00 361,928.00 361,928.00
China 24, 2013 24, 2023
Shenzhen
Branch
The
Export-Impo
rt Bank of January 15, December 5,000,000.0 5,000,000.0 5,000,000.0
CNY 6.06%
China 2014 24, 2023 0 0 0
Shenzhen
Branch
Bank of
China (Hong July 11, July 11, 50,000,000. 39,695,000. 50,000,000. 39,310,000.
HK$ 3.00%
Kong) 2013 2016 00 00 00 00
Limited
Bank of
China (Hong August 5, August 5, 50,000,000. 39,695,000. 50,000,000. 39,310,000.
HK$ 3.00%
Kong) 2013 2016 00 00 00 00
Limited
Bank of
China (Hong January 1, July 11, 20,000,000. 15,878,000.
HK$ 3.00% 0.00 0.00
Kong) 2014 2016 00 00
Limited
Bank of January 27, July 11, HK$ 3.00% 10,000,000. 7,939,000.0 0.00 0.00
135
FIYTA Holdings Ltd. 2014 Semi-Annual Report
China (Hong 2014 2016 00 0
Kong)
Limited
Bank of
China (Hong March 3, January 11, 20,000,000. 15,878,000.
HK$ 3.00% 0.00 0.00
Kong) 2014 2017 00 00
Limited
China
Constructio December December 1,018,954.4
HK$ 4.25% 918,311.94 729,047.85 801,102.01
n Bank 30, 2010 30, 2017 8
(Asia)
Dettes
November November 6,445,307.5 6,491,920.0
bancaires à SF 3.00% 925,000.00 950,000.00
11, 2012 11, 2032 0 0
long terme
218,121,283 173,274,950
Total -- -- -- -- -- --
.35 .01
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.
Inapplicable
43. Bonds payable
In CNY
Interest
Interest Accrued Interest paid
payable at
Amount payable at interest in the in the Ending
Bond name Par value Issuing date Term end of the
issued beginning reporting reporting balance
reporting
period period
period
12YADABON 400,000,000. February 27, 400,000,000. 16,800,000.0 10,080,000.0 20,160,000.0 398,244,033.
3+2 years 6,720,000.00
D 00 2013 00 0 0 0 76
Note to the bonds payable, including the conditions and time of conversion of the convertible company
bonds into shares
Inapplicable
44. Long term accounts payable
(1) Top five creditors of the long term accounts payable
Inapplicable
(2) Statement of the finance lease payables in the long term accounts payable
Inapplicable
136
FIYTA Holdings Ltd. 2014 Semi-Annual Report
45. Special accounts payable
Inapplicable
46. Other non-current liabilities
In CNY
Items Ending book balance Opening book balance
Deferred income 3,430,000.00 2,950,000.00
Total 3,430,000.00 2,950,000.00
Note to other non-current liabilities
Liabilities in connection with government subsidy
In CNY
Amount of Amount
allowances counted to the
Correlation with
Opening newly added non-operating Other Ending
Liability Items asset/income
balance in the income in the changes balance
reporting reporting
period period
Special fund for
Development of
Strategical New Correlation with
320,000.00 480,000.00 800,000.00
Industries in income
Shenzhen
(Note①)
Special fund for
development of Correlation with
780,000.00 780,000.00
cultural creative income
industry (Note②)
Research on
Electronic Clock
Technology for 1,200,000. Correlation with
1,200,000.00
Cockpit of Civil 00 income
Airplane
（Note③）
Reward of the
Correlation with
14th Patent 350,000.00 350,000.00
income
Award（Note④）
Project of
cooperation with
manufacturers Correlation with
300,000.00 300,000.00
and academic income
and research
institutions
137
FIYTA Holdings Ltd. 2014 Semi-Annual Report
(Note⑤)
3,430,000.
Total 2,950,000.00 480,000.00 --
00
Note ①: 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 ②: It is a special fund for the Company’s “FIYTA PHOTOGRAPHER SERIES WATCH” Project
granted by Culture, Sports and Tourism Administration of Shenzhen Municipality according to the
Measures for Administration of Special Fund for Development of Cultural Innovation Industry in
Shenzhen;
Note ③: It is a special fund for the First Technical Development Projects (Up-to-Date Equipment
Manufacture) in the Technology Innovation Program with Technology R & D Fund in 2013 sponsored by
the Technology Innovation Committee of Shenzhen Municipality and Finance Commission of Shenzhen
Municipality according to the Measures for Management of Technology R & D Fund in Shenzhen and
the Measures for Administration of the Projects in the Science and Technology Program in Shenzhen;
Note ④: It is a reward of the patent award granted according to the Circular of Intellectual Property
Office of Guangdong Province on Appropriation of the Reward Fund of the 14th China Patent Award
(YUE ZHI GUI [2013] No. 165);
Note ⑤: It is a project for cooperation with manufacturers and academic and research institutions
sponsored by Education Department of Guangdong Province according to Document YUE CAI JIAO
[2012] No. 393. The Company was granted the special fund for the technology of nickelless stainless
steel technology for human skin contact product applied with the fund for the guidance fund for
combination with manufacture, academy and research in year 2012.
47. Share Capital
In CNY
Increase/ Decrease (+ / -) resulting from the change in the reporting period
Beginning of the Shares End of the
reporting period New issuing Bonus shares converted from Others Sub-total Reporting Period
reserve
Total Shares 392,767,870.00 0.00 0.00 0.00 0.00 0.00 392,767,870.00
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
138
FIYTA Holdings Ltd. 2014 Semi-Annual Report
overall change of a company limited by shares is the capital verification which should be specified at the
time of incorporation.
Inapplicable
48. Treasury stock
Inapplicable
49. Special reserve
Inapplicable
50. Capital reserve
In CNY
End of the
Beginning of the Increase in the Decrease in the
Items Reporting
reporting period reporting period reporting period
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
Inapplicable
51. Surplus reserve
In CNY
End of the
Beginning of the Increase in the Decrease in the
Items Reporting
reporting period reporting period reporting period
Period
Statutory surplus reserve 94,729,200.20 0.00 0.00 94,729,200.20
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
fund
Others 0.00 0.00 0.00 0.00
Total 156,714,094.20 0.00 0.00 156,714,094.20
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.
Inapplicable
139
FIYTA Holdings Ltd. 2014 Semi-Annual Report
52. General risk reserve
Inapplicable
53. Retained earnings
In CNY
Provision or
Items Amount distribution
proportions
Before adjustment: Retained earnings
469,706,600.67 --
at the end of the previous year
Retained earnings at year beginning
469,706,600.67 --
after adjustment
Plus: Net profit attributable to the
parent company’s owner in the report 88,283,873.10 --
period
Dividend for common shares payable 39,276,787.00
Retained earnings at the end of the
518,713,686.77 --
reporting period
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 shareholders’ general meeting, the Company should
disclose explicitly the amount of the profit in the dividend shared by the medium and old shareholders.
140
FIYTA Holdings Ltd. 2014 Semi-Annual Report
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 1,628,150,096.74 1,493,827,814.22
Revenue from other business 14,464,694.23 14,525,952.64
Operating costs 1,038,060,709.77 970,869,666.64
(2) Principal Businesses Based on Sectors
In CNY
Amount incurred in the reporting Amount incurred in the previous
Sectors
period period
Operating Operating
Operating costs Operating costs
revenue revenue
Commerce 1,164,509,801.05 879,130,610.80 1,133,437,634.12 847,739,810.91
Industry 420,802,528.52 148,417,710.07 321,175,473.86 110,740,242.66
Property lease 42,837,767.17 6,368,580.17 39,214,706.24 6,743,346.45
Total 1,628,150,096.74 1,033,916,901.04 1,493,827,814.22 965,223,400.02
(3) Principal Businesses Based on Products
In CNY
Amount incurred in the reporting Amount incurred in the previous
period period
Description of Products
Operating Operating
Operating costs Operating costs
revenue revenue
Sales of famous brand
1,164,509,801.05 879,130,610.80 1,133,437,634.12 847,739,810.91
watches
Manufacture and sales of
391,786,607.01 131,829,910.71 309,503,274.43 104,364,504.14
FIYTA watches
Property lease 42,837,767.17 6,368,580.17 39,214,706.24 6,743,346.45
Precision machining 29,015,921.51 16,587,799.36 11,672,199.43 6,375,738.52
Total 1,628,150,096.74 1,033,916,901.04 1,493,827,814.22 965,223,400.02
(4) Principal Businesses Based on Regions
In CNY
141
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Amount incurred in the reporting Amount incurred in the previous
Regions
period period
Operating Operating
Operating costs Operating costs
revenue revenue
Northeast China 152,503,099.71 106,837,154.05 130,071,970.42 95,160,184.44
North China 241,303,219.12 174,784,558.99 290,411,310.16 218,987,802.61
Northwest China 287,448,335.94 206,860,118.69 270,095,282.36 199,716,950.98
Southwest China 164,673,874.58 114,716,453.05 137,226,801.31 98,473,472.78
East China 219,417,606.86 149,575,845.53 178,523,905.64 125,133,429.43
South China 562,803,960.53 281,142,770.73 487,498,544.33 227,751,559.78
Total 1,628,150,096.74 1,033,916,901.04 1,493,827,814.22 965,223,400.02
(5) Sales Income from Top Five Customers
In CNY
Description of the Revenue from principal Proportion in the Company’s total sales
Customers business income (%)
Yongan General
34,030,331.44 2.07%
Merchandise Co., Ltd.
Xi’an Kaiyuan Shopping
29,318,506.46 1.78%
Mall Co., Ltd.
Fuzhou Ocean Department
23,605,162.26 1.44%
Store Co., Ltd.
Jiangxi Baisheng
Zhongshancheng General 23,446,825.68 1.43%
Merchandise Co., Ltd.
Heiwado (China) Limited 22,989,284.14 1.40%
Total 133,390,109.98 8.12%
Note to the operation revenues
Inapplicable
55. Income from Contract Projects
In CNY
Accumulative
Contract with fixed Accumulative cost gross profit already Amount already
Contract project Amount
cost already incurred confirmed (loss settled
stated with “-”
Accumulative
Accumulative cost gross profit already Amount already
Cost-plus contract Contract project Amount
already incurred confirmed (loss settled
stated with “-”
Note to the contract project
Inapplicable
142
FIYTA Holdings Ltd. 2014 Semi-Annual Report
56. Business Taxes and Surcharges
In CNY
Amount incurred in Amount incurred in
Items Taxation Rate
the reporting period the previous period
The Company and its
subsidiaries located in PRC
Mainland pay taxable
Consumption tax 43,350.43 450,766.66 consumption tax at 20% 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 income from
Business tax 2,612,300.80 2,644,269.59
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
Urban maintenance and
4,168,538.63 3,566,290.79 before December 1, 2010 and
construction tax
7% of the 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
Education surcharge 2,929,387.82 2,399,990.73
Office of Shenzhen Municipal
People’s Government on
Printing and Issuing the
Provisional Measures for
Administration of Collection of
Local Education Surcharge in
143
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Shenzhen, they pay the local
education surcharge at 2% of
the turnover tax actually paid
commencing from January 1,
2011.
Others 561,139.36 537,501.80
Total 10,314,717.04 9,598,819.57 --
Note to business taxes and surcharges
Inapplicable
57. Sales costs
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Wages 109,456,820.30 95,425,585.46
Long-term expenses to be
44,261,587.02 40,071,228.64
apportioned
Rental 40,076,786.07 36,106,141.39
Market promotion 35,445,353.18 34,348,587.79
Shopping mall expenses 23,862,707.42 21,675,500.79
Advertisement 23,359,757.65 21,704,181.71
Labor insurance 15,913,522.74 14,991,352.99
Exhibition 13,454,428.70 8,487,347.93
Packing 6,319,352.09 6,048,382.80
Water and electricity 5,848,804.57 6,188,388.83
Others 31,762,200.65 30,289,173.53
Total 349,761,320.39 315,335,871.86
58. Administrative expenses
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Wages 46,069,762.57 41,385,108.98
R & D costs 7,024,738.13 6,620,694.71
Labor insurance 4,287,800.15 4,514,446.62
Depreciation 3,764,328.63 3,738,162.30
Business travel 3,718,879.68 2,778,620.61
Trade union budget 2,031,932.61 1,910,645.98
Meeting 1,712,332.00 1,834,405.81
144
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Business entertainment 1,541,236.25 1,593,464.97
Administrative expenses 1,465,787.27 1,076,165.60
Welfares 1,454,302.90 1,458,323.04
Others 11,781,092.20 11,313,945.12
Total 84,852,192.39 78,223,983.74
59. Financial Expenses
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Interest payment 47,607,241.57 43,059,131.02
Less: interest income 798,950.68 556,505.59
Exchange losses 496,600.58 -1,302,644.23
Financial service charge 6,074,327.53 6,073,587.41
Plus: Collateral charge for loans 0.00 0.00
Others 817,459.49 549,840.19
Total 54,196,678.49 47,823,408.80
60. Income from change of fair value
Inapplicable
61. Return on Investment
(1) Statement 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
-504,563.21 108,440.73
based on equity method
Total -504,563.21 108,440.73
(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 Cause of increase/decrease in
Amount incurred in
Investees in the previous the report period over the
the reporting period
period previous period
Shanghai Watch Industry Co., The return on investment in
-504,563.21 108,440.73
Ltd. the long term equity of
145
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Shanghai Watch calculated in
the reporting period includes
the portion of the change of
the investee’s profit amounting
to CNY 269,017.17 in the
reporting period and the
initially assessed appreciation
amount totaling CNY
773,580.38 of the investee’s
assets already sold which was
offset in the reporting period.
Total -504,563.21 108,440.73 --
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.
Inapplicable
62. Loss from impairment of assets
In CNY
Amount incurred in the Amount incurred in the
Items
reporting period previous period
I. Loss from bad debt -147,985.53 -42,202.72
II. Loss from price falling of inventories 2,755,108.79 5,000,000.00
Total 2,607,123.26 4,957,797.28
63. Non-operating income
(1) About non-operating income
In CNY
Amount recorded in
Amount incurred in Amount incurred in the the non-recurring
Items
the reporting period previous period gain/loss in the
reporting period
Total gains from disposal of
37,755.19 467,975.18 37,755.19
non-current asset
Including: Income from disposal of
37,755.19 467,975.18 37,755.19
fixed assets
Government subsidies 1,726,500.00 795,493.22 1,726,500.00
Others 1,425,727.38 297,969.80 1,425,727.38
Total 3,189,982.57 1,561,438.20 3,189,982.57
146
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Note to non-operating income
Inapplicable
(2) Government subsidy counted to the current gain/loss
In CNY
Does it belong to
Projects enjoying Amount incurred in Amount incurred in Correlation with
non-recurring
the subsidy the reporting period the previous period assets/income
gain/loss
Fund for the second
financed projects
with 2013 Special
Fund for Economic
Correlation with
Development 100,000.00 Yes
income
provided by
Finance Bureau of
Nanshan District
(Note ①)
Designated fund for
development of the
self-dependent
innovation industry Correlation with
531,500.00 Yes
in 2013 provided by income
Finance Bureau of
Nanshan District
(Note ②)
Subsidy for
application for
registration of the
first trademarks
outside Mainland
China in 2014 Correlation with
70,000.00 Yes
provided by Market income
Supervision
Administration of
Shenzhen
Municipality (Note
③)
Subsidy for
cultivation of the
Correlation with
local brands of 1,000,000.00 Yes
income
Shenzhen (Note
③)
Government 20,000.00 Correlation with Yes
147
FIYTA Holdings Ltd. 2014 Semi-Annual Report
subsidy for income
exhibition at BASEL
Watch Expo
provided by
Shenzhen Horologe
Association (Note
⑤)
Financial support to
Correlation with
patent projects 5,000.00 Yes
income
(Note ⑥)
Grants for
implementation of Correlation with
112,500.00 Yes
the standardization income
strategy
Special fund for
cooperation with
provincial and Correlation with
236,000.00 Yes
ministrial academic income
and research
institutions
Subsidy for 2011
provided by Correlation with
60,000.00 Yes
Shenzhen Horologe income
Association
Reward for
speeding up
development of Correlation with
370,000.00 Yes
backbone income
enterprises in
Shenzhen
Fund for market
promotion of small Correlation with
16,993.22 Yes
and medium- sized income
enterprises
Total 1,726,500.00 795,493.22 -- --
Note ①: It refers to the special fund for economic development obtained according to the Notice on List
of Enterprises Enjoying the Support of the Designated Fund for Development of Self-dependent
Innovation Industry of Nanshan District in 2013 (Second Batch from the Economic Promotion Bureau)
promulgated by the Economic Promotion Bureau of Nanshan District;
Note ②: It refers to the designated fund for science and technology obtained according to the Notice on
List of the Second Batch of Projects Enjoying the Support of the Designated Fund for Development of
Self-dependent Innovation Industry of Nanshan District in 2013 (the Part of Science and Technology);
148
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Note ③: It refers to the grants for application for registration of the first trademarks outside Mainland
China in 2014 provided by Market Supervision Administration of Shenzhen Municipality;
Note ④: It refers to the grants for the brand cultivation projects obtained according to the Circular of
Economy, Trade and Information Commission of Shenzhen Municipality on List of the Brand Cultivation
Projects Enjoying the Grants with the Fund for Progress of Industrial Technology in Year 2013 (SHEN
JING MAO XIN XI JI CAI ZI (2013) No. 235);
Note ⑤: It refers to the government subsidy for exhibition at BASEL Watch Expo 2013 provided by
Shenzhen Horologe Association to the Company;
Note ⑥: It refers to the appropriation for application for patents of Shenzhen in 2014 (the first batch) by
Market Supervision Administration of Shenzhen Municipality.
64. Non-operating expenses
In CNY
Amount recorded in
Amount incurred in Amount incurred in the non-recurring
Items
the reporting period the previous period gain/loss in the
reporting period
Total loss from disposal of the
31,046.62 27,315.73
non-current assets
External donation 150,000.00 180,000.00
Others 369,594.26 38,870.48
Total 550,640.88 246,186.21
Note to non-operating expenses
Inapplicable
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
according to the tax law and the relevant 24,868,386.04 17,674,422.82
provisions.
Adjustment of deferred income tax -8,294,858.73 -3,919,237.05
Total 16,573,527.31 13,755,185.77
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
149
FIYTA Holdings Ltd. 2014 Semi-Annual Report
share (diluted EPS) in different periods.
Amount incurred in the report Amount incurred in the previous year
Profit in the reporting
year
period
Basic EPS Diluted EPS Basic EPS Diluted EPS
Net profit attributable to 0.225 0.225 0.176 0.176
the Company’s
shareholders of
ordinary shares
Net profit attributable to 0.219 0.219 0.173 0.173
the Company’s
shareholders of
ordinary 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 Amount incurred in the
report year previous year
Net profit attributable to the shareholders of 88,283,873.10 69,097,419.87
ordinary shares
Including: Net profit attributable to continuous 88,283,873.10 69,097,419.87
operation
Net profit attributable to the Company’s 86,173,160.01 68,078,232.08
shareholders of ordinary shares less
non-recurring gain and loss
Including: Net profit attributable to continuous 86,173,160.01 68,078,232.08
operation
②In 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 Amount incurred in the
report year previous year
Number of outstanding ordinary shares at year 392,767,870.00 392,767,870.00
beginning
Plus: Weighted number of common shares - -
issued in the current year
Less: Weighted number of ordinary shares - -
repurchased in the current year
Weighted number of outstanding ordinary shares 392,767,870.00 392,767,870.00
150
FIYTA Holdings Ltd. 2014 Semi-Annual Report
at year end
67. Other comprehensive income
In CNY
Items Reporting period Previous period
1. Amount of gain/loss arising from
0.00 0.00
available-for-sale financial assets
Less: Influence upon income tax from
0.00 0.00
available-for-sale financial assets
Net gain/loss previously recorded in other
comprehensive gains transferred to the current 0.00 0.00
gain/loss
Sub-total 0.00 0.00
2. The share calculated according to the equity
method and enjoyed in the other comprehensive 0.00 0.00
income of the investee
Less: Influence upon the income tax arising from
the share calculated according to the equity
0.00 0.00
method and enjoyed in the other comprehensive
income of the investee
Net gain/loss previously recorded in other
comprehensive gains transferred to the current 0.00 0.00
gain/loss
Sub-total 0.00 0.00
3. Amount of gain/loss arising from the cash flow
0.00 0.00
hedge instrument
Less: Influence upon income tax arising from
0.00 0.00
the cash flow hedge instrument
Net gain/loss previously recorded in other
comprehensive gains transferred to the current 0.00 0.00
gain/loss
Amount of adjustment of the amount transferred
0.00 0.00
into the hedge item recognized initially
Sub-total 0.00 0.00
4. Converted difference in Foreign Currency
2,263,797.96 -3,563,383.18
Statements
Less: Net in disposal of overseas operation
0.00 0.00
transferred to the current gain/loss
Sub-total 2,263,797.96 -3,563,383.18
5. Others 0.00 0.00
Less: Influence upon the income tax arising from
others recorded in the other comprehensive 0.00 0.00
income
151
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Net of the gain/loss recorded previously in the
other comprehensive gains transferred to the 0.00 0.00
current gain and loss
Sub-total 0.00 0.00
Total 2,263,797.96 -3,563,383.18
Note to other comprehensive income
Inapplicable
68. Note to the Cash Flow Statement
(1) Other operation related cash received
In CNY
Items Amount
Promotion 7,525,003.95
Government subsidies 1,726,500.00
Deposit 1,169,850.00
Interest income 798,950.68
Reserves 6,000.00
Others 4,069,750.36
Total 15,296,054.99
Note to the other operation related cash received
Inapplicable
(2) Other operation related cash paid
In CNY
Items Amount
Rental 41,108,746.25
Market promotion 24,561,443.68
Advertisement 18,622,707.42
Shopping mall costs 23,359,757.65
Exhibition 9,154,428.70
R&D 5,606,420.13
Business travel 6,741,403.76
Water & power 6,559,696.66
Packing 5,848,804.57
Office 4,726,973.59
Transportation 3,539,130.41
Commission for agents 2,237,679.28
Conferences & meetings 2,213,714.36
Post and communication 1,873,003.47
Business entertainment 1,863,620.09
Others 2,523,383.87
152
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Total 160,540,913.89
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
Investment repayment to minority shareholders 1,400,000.00
Payment for issuing L/G 744,375.00
Other financing related charges 151,008.00
Total 2,295,383.00
Note to cash payment for other financing related activities:
During the reporting period, Shenzhen World Watches Center Co., Ltd., one of the Company’s
subsidiaries completed the procedures for cancellation on May 5, 2014 and recovered the investment
capital amounting to CNY 1,400,000.00 and repaid investment capital amounting to CNY 1,400,000.00
to the minority shareholders.
69. Supplemental information of the cash flow statement
(1) Supplemental 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 88,383,300.80 69,212,725.92
Plus: Provisions for impairment of assets 2,607,123.26 4,957,797.28
Depreciation of fixed assets, oil and gas
16,076,871.28 16,007,258.88
assets, production based biological asset
Amortization of intangible assets 720,075.39 701,205.67
153
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Long-term expenses to be apportioned 50,918,783.48 45,529,420.78
Loss (income is stated with “-“) from disposal
of fixed assets, intangible assets and other -6,708.57 -440,659.45
long term assets
Financial expenses (income is stated with “-“) 47,607,241.57 43,059,131.02
Investment loss (income is stated with “-“) 504,563.21 -108,440.73
Decrease of deferred income tax asset
-8,708,125.05 -1,547,836.39
(increase is stated with “-“)
Decrease of inventories (increase is stated
40,945,763.21 -8,000,799.50
with “-“)
Decrease of operative items receivable
-89,756,578.05 -25,258,705.56
(increase is stated with “-“)
Increase of operative items receivable
-11,293,631.14 -10,116,297.35
(decrease is stated with “-“)
Net cash flow arising from operating activities 137,998,679.39 133,994,800.57
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 159,843,756.99 95,490,125.02
Less: Opening cash balance 107,663,110.74 140,420,994.71
Net increase in cash and cash equivalents 52,180,646.25 -44,930,869.69
(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:
3. Net cash paid in acquisition of subsidiaries
0.00 0.00
and other operating units
II. Information concerning disposal of
-- --
subsidiaries and other operating units:
3. Net cash received from disposal of
0.00 0.00
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 159,843,756.99 107,663,110.74
III. Ending balance of cash and cash 159,843,756.99 107,663,110.74
154
FIYTA Holdings Ltd. 2014 Semi-Annual Report
equivalents
Note to the supplemental information of cash flow statement
Inapplicable
70. Note to items in the statement of change in owner’s equity
Inapplicable
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
Voting
Proportion
power
of the
proportion
Company’s The
Legal of the
Relationshi Enterprise Place of Business Registered shares held Company’s Organizatio
Parent representati parent
p type Registration nature capital by the eventual n Code
ve: company
parent controller
over the
company
Company
(%)
(%)
Investing
and
initiating
AVIC
entities,
Internationa Controlling Company Wu 1,110,631,9
Shenzhen domestic 41.49% 41.49% AVIC 27935122-9
l Holdings shareholder limited Guangquan 96.00
commerce,
Limited
supply and
sales of
goods
Note to the Company’s Parent:
155
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Note: AVIC International Shenzhen Company Limited (AVIC International Shenzhen) holds the equity in
AVIC International Holdings Limited by 35.63%. AVIC International Shenzhen is a wholly-owned
subsidiary of AVIC International Holdings Limited (AVIC International). AVIC directly holds 62.52% of the
equity in AVIC International. Therefore, the Company’s eventual controller is AVIC.
2. About the Subsidiaries
Full Names Legal Shareholding Proportion of
Subsidiary Enterprise Place of Business Registered Organization
of representativ proportion voting power
type type Registration nature capital Code
Subsidiaries e: (%) (%)
Controlled Limited Xu 600,000，
HARMONY Shenzhen Commerce 100.00% 100.00% 279313935
subsidiary liability Dongsheng 000(CNY)
FIYTA Controlled Limited Xu 10,000,000(
Shenzhen Manufacture 100.00% 100.00% 715210802
Manufacture subsidiary liability Dongsheng CNY)
FIYTA Hong Controlled Limited 65,060,000(
Hong Kong Lu Bingqiang Commerce 100.00% 100.00% 37954781
Kong Limited subsidiary liability HKD)
FIYTA Controlled Limited Xu 10,000,000(
Shenzhen Manufacture 100.00% 100.00% 69396758X
Technology subsidiary liability Dongsheng CNY)
Controlled Limited Xu 5,000,000(C
FIYTA Trade Shenzhen Commerce 100.00% 100.00% 697108950
subsidiary liability Dongsheng NY)
Controlled Limited Xu 50,000,000(
FIYTA Sales Shenzhen Commerce 100.00% 100.00% 57476869-2
subsidiary liability Dongsheng CNY)
3. Joint Ventures and Associates
Proportion of
Proportion of
the
Legal the shares
Enterprise Place of Business Registered Company’s Organization
Investees representativ held by the Relationship
type Registration Nature capital voting power Code
e: Company
in the
(%)
investee (%)
I. Joint venture
II. Associate
Shanghai
Watch
Watch Limited Dong CNY 15.35
Shanghai production 25.00% 25.00% Associate 134657657
Industry Co., liability Guozhang million
and sales
Ltd.
4. The Company’s other related parties
Other related parties Relationship with the Company Organization Code
CATIC Property Management Co.
under the control of the same party 19219400-5
(CATIC Property)
Shenzhen CATIC Building Technology under the control of the same party 743201073
156
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Co., Ltd.(CATIC Building Technology)
Rainbow Supermarket Co.,
under the control of the same party 618842912
Ltd.(Rainbow Supermarket )
Shennan Circuit Co., Ltd. under the control of the same party 192195761
CATIC Real Estate Co., Ltd.（CATIC
under the control of the same party 279340845
Real Estate）
Shenzhen Makway Cable TV
under the control of the same party 618810902
Equipment Co., Ltd.(Makway)
CATIC Securities Co., Ltd.(CATIC
under the control of the same party 741986153
Securities)
Xi’an Tianyue Hotel Co., Ltd.（Tianyue
under the control of the same party 76197033-5
Hotel）
Shenzhen CATIC Nanguang Elevator
Engineering Co., Ltd.(CATIC under the control of the same party 192350741
Nanguang)
Shenzhen CATIC City Property
Development Co., Ltd. （CATIC City under the control of the same party 676667833
Property ）
Shenzhen CATIC City Development
under the control of the same party 192194005
Co., Ltd.（CATIC City Development）
Shenzhen CATIC Guanlan Real Estate
Development Co., Ltd.（CATIC Guanlan under the control of the same party 763495945
Real Estate）
Shenzhen CATIC Changtai Investment
Development Co.,Ltd.（CATIC under the control of the same party 732047808
Changtai）
Shenzhen CATIC Jiufang Assets
Management Co., Ltd.（CATIC Jiufang under the control of the same party 580064616
Assets）
Ganzhou CATIC Real Estate
Development Co., Ltd.（Ganzhou under the control of the same party 664794739
CATIC Real Estate）
Shenzhen CATIC City Investment Co.,
under the control of the same party 279340845
Ltd.（CATIC City Investment）
Chengdu CATIC Real Estate
Development Co., Ltd.（Chengdu under the control of the same party 66047931X
CATIC Real Estate）
CATIC Electronic Measuring
Instruments Co., Ltd.（CATIC Electronic under the control of the same party 745016111
Measuring Instruments）
Shenzhen CATIC Theme Real Estate
under the control of the same party 618811913
Co., Ltd.（CATIC Theme Real Estate）
AVIC International Shenzhen Company
holding company 19034036-3
Limited
157
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Shenzhen CATIC Enterprise Group
under the control of the same party -
Training Center
Note to the Company’s other related parties
Inapplicable
5. Related transactions
(1) Statement of Commodities Purchased and Labor Services Received
In CNY
Amount incurred in the reporting Amount incurred in the previous
period period
Pricing of related Proportion Proportion
Description of Related transactions and in the in the
Related Parties
Transactions decision making amount of amount of
Amount Amount
procedures the similar the similar
transaction transaction
s (%) s (%)
Property management
CATIC Property Negotiated price 765,635.66 100.00% 572,579.12 100.00%
fee
Shenzhen CATIC
Enterprise Group Training fee Negotiated price 0.00 0.00% 142,437.90 12.54%
Training Center
Rainbow Supermarket Shopping mall expenses Negotiated price 1,531,106.86 6.55% 1,373,419.14 5.36%
Statement of Sales of Goods and Supply of Labor Services
In CNY
Amount incurred in the reporting Amount incurred in the previous
period period
Pricing of related Proportion Proportion
Description of Related transactions and in the in the
Related Parties
Transactions decision making amount of amount of
Amount Amount
procedures the similar the similar
transaction transaction
s (%) s (%)
Rainbow Supermarket Sales of products Negotiated price 39,858,340.52 2.43% 39,047,964.44 2.57%
AVIC Sales of products Negotiated price 650,286.32 0.04% 1,328,029.06 0.09%
Shennan Circuit Co.,
Sales of materials Negotiated price 15,005,995.58 0.91% 7,357,604.78 0.49%
Ltd.
(2) Related trust/contract
Inapplicable
158
FIYTA Holdings Ltd. 2014 Semi-Annual Report
(3) Related Leases
Statement of leases
In CNY
Rental
Basis for
Lease income
Lease starting determining
Lessor Lessees Leased asset termination recognized in
date the lease
date the reporting
income
period
The CATIC Real Negotiated
Property May 16, 2012 May 15, 2015 754,416.00
Company Estate price
The CATIC October 1, September Negotiated
Property 1,330,272.00
Company Property 2012 30, 2015 price
The CATIC September September Negotiated
Property 536,760.00
Company Securities 16, 2013 16, 2014 price
The CATIC City Negotiated
Property May 16, 2012 May 16, 2015 11,160.00
Company Property price
The CATIC City Negotiated
Property May 16, 2012 May 16, 2015 11,160.00
Company Development price
CATIC
The Negotiated
Guanlan Real Property May 16, 2012 May 16, 2015 44,640.00
Company price
Estate
The CATIC Negotiated
Property May 16, 2012 May 16, 2015 642,816.00
Company Changtai price
The January 1, December 31, Negotiated
Tianyue Hotel Property 2,708,299.98
Company 2014 2014 price
The Rainbow Negotiated
Property May 1, 2013 April 30, 2016 224,280.02
Company Supermarket price
The CATIC City Negotiated
Property May 16, 2012 May 15, 2015 45,012.00
Company Investment price
CATIC
The June 30, Negotiated
Jiufang Property July 1, 2013 181,818.00
Company 2016 price
Assets
CATIC
The Negotiated
Theme Real Property May 16, 2012 May 15, 2015 472,812.00
Company price
Estate
AVIC
The January 1, February 28, Negotiated
International Property 210,270.00
Company 2014 2014 price
Shenzhen
Statement of Tenancies
In CNY
Lease starting Lease Basis for Rent
Lessor Lessees Leased asset
date termination determining recognized in
159
FIYTA Holdings Ltd. 2014 Semi-Annual Report
date the rent the reporting
period
Ganzhou
August 1, August 30, Negotiated
CATIC Real HARMONY Shop 501,799.74
2012 2017 price
Estate
Chengdu
CATIC Real October 28, October 27, Negotiated
HARMONY Shop 404,994.68
Estate Co., 2011 2016 price
Ltd.
Description of related leases
Inapplicable
(4) Related guarantee
In CNY
Has the
Amount in Guarantee Expiry of
Guarantor Guarantee guarantee been
guarantee starting date guarantee
implemented?
February 25, February 24,
The Company HARMONY 60,000,000.00 No
2014 2015
The Company HARMONY 50,000,000.00 July 18, 2013 July 17, 2014 No
December 12,
The Company HARMONY 50,000,000.00 June 13, 2014 No
2014
February 27, February 26,
The Company HARMONY 20,000,000.00 No
2014 2015
September 5,
The Company HARMONY 30,000,000.00 March 6, 2014 No
2014
The Company HARMONY 30,000,000.00 May 9, 2014 May 8, 2015 No
The Company HARMONY 27,000,000.00 May 27, 2014 May 26, 2015 No
December 30, December 29,
The Company HARMONY 100,000,000.00 No
2013 2014
FIYTA Hong November 9,
The Company 23,817,000.00 October 5, 2014 No
Kong Limited 2012
FIYTA Hong
The Company 15,878,000.00 October 5, 2012 October 5, 2014 No
Kong Limited
FIYTA Hong
The Company 39,695,000.00 July 15, 2013 July 11, 2016 No
Kong Limited
FIYTA Hong
The Company 39,695,000.00 August 5, 2013 August 5, 2016 No
Kong Limited
FIYTA Hong
The Company 15,878,000.00 January 1, 2014 July 11, 2016 No
Kong Limited
FIYTA Hong January 27,
The Company 7,939,000.00 July 11, 2016 No
Kong Limited 2014
The Company FIYTA Hong 15,878,000.00 March 3, 2014 January 11, No
160
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Kong Limited 2017
HARMONY The Company 70,000,000.00 October 8, 2013 October 7, 2014 No
February 12, February 11,
HARMONY The Company 40,000,000.00 No
2014 2015
February 19, February 18,
HARMONY The Company 90,000,000.00 No
2014 2015
September 24, September 23,
HARMONY The Company 50,000,000.00 No
2013 2014
AVIC
International December 24, December 24,
The Company 361,928.00 No
Holdings 2013 2023
Limited
AVIC
International January 15, December 24,
The Company 5,000,000.00 No
Holdings 2014 2023
Limited
CATIC February 27, February 26,
The Company 400,000,000.00 No
Shenzhen 2013 2016
Note to the related guarantees
Inapplicable
(5) Lending and Borrowing with Related Parties
In CNY
Related party Amount involved Starting date Expiry date Note
Borrowing
AVIC International
150,000,000.00 May 26, 2014 May 22, 2015
Holdings Limited
Lending
(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
161
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Beginning of the reporting
End of the reporting period
period
Items Related Parties
Bad debt Bad debt
Book balance Book balance
reserve reserve
Rainbow
Accounts receivable 4,085,198.33 204,259.92 2,154,095.08 107,704.75
Supermarket
AVIC 630,779.00 31,538.95 644,059.00 32,202.95
Shennan Circuit
2,305,125.44 115,256.27 10,884,289.63 544,214.48
Co., Ltd.
CATIC Electronic
Measuring 34,216.60 1,710.83 197,396.00 9,869.80
Instruments
Total 7,055,319.37 352,765.97 13,879,839.71 693,991.98
Shennan Circuit
Notes receivable 16,200,559.00 0.00 7,000,000.00 0.00
Co., Ltd.
CATIC Electronic
Measuring 0.00 0.00 100,000.00 0.00
Instruments
Total 16,200,559.00 0.00 7,100,000.00 0.00
Rainbow
Other receivables 176,429.60 8,821.48 167,856.60 8,392.83
Supermarket
Tianyue Hotel 1,999,999.98 100,000.00 1,750,000.00 87,500.00
Shenzhen
CATIC
150,000.00 7,500.00 11,424.70 571.24
Enterprise Group
Training Center
Chengdu CATIC
Real Estate Co., 100,536.00 5,026.80 115,616.40 5,780.82
Ltd.
Ganzhou CATIC
122,665.60 6,133.28 122,665.60 6,133.28
Real Estate
CATIC Property 0.00 0.00 6,700.00 335.00
Total 2,549,631.18 127,481.56 2,174,263.30 108,713.17
Accounts payable to the related parties
In CNY
Amount at the
Amount at the end of
Items Related Parties beginning of the
the reporting period
reporting period
CATIC Electronic
Account payable 0.00 45,549.40
Measuring Instruments
Total 0.00 45,549.40
Advance receipt AVIC 0.00 15,469.00
Total 0.00 15,469.00
162
FIYTA Holdings Ltd. 2014 Semi-Annual Report
CATIC Building
Other payables 8,227.10 8,227.10
Technology
CATIC Nanguang 3,354.90 3,354.90
CATIC City Investment 37,700.00 37,700.00
CATIC Securities 178,920.00 178,920.00
CATIC Real Estate 424,800.00 424,800.00
CATIC Changtai 221,712.00 221,712.00
Rainbow Supermarket 60,000.00 60,000.00
CATIC Jiufang Assets 60,606.00 60,606.00
Chengdu CATIC Real
0.00 4,364.60
Estate Co., Ltd.
AVIC International
150,000,000.00 0.00
Holdings Limited
Total 150,995,320.00 999,684.60
163
FIYTA Holdings Ltd. 2014 Semi-Annual Report
X. Share-based payment
1. General of share-based payment
Inapplicable
2. Share-based payment settled by equity
Inapplicable
3. Share-based payment settled by cash
Inapplicable
4. Share-based payment for services
Inapplicable
5. Amendment and termination of share-based payment
Inapplicable
(XI) Contingencies
1. Contingent liabilities arising from unsettled lawsuits/arbitration and the influence upon the
finance
Inapplicable
2. Contingent liabilities resulted from debt guarantee offered by other organizations and the
financial influence
Inapplicable
(XII) Commitments
1. Important Commitments
(1) Capital commitment
Items Year end Year beginning
Already signed but not yet recognized in the
financial statement
- Commitment for purchase/construction of 216,827,942.99 7,117,817.60
long term asset
164
FIYTA Holdings Ltd. 2014 Semi-Annual Report
(2) Operation lease commitments:
The irrevocable operation lease contracts executed between the Group and external parties by the
balance sheet day are as follows:
Items Year end Year beginning
Minimum rent payment for the irrevocable
operation lease:
1st year after the balance sheet day 19,105,651.01 39,333,248.01
2nd year after the balance sheet day 25,091,615.54 25,091,639.54
3rd year after the balance sheet day 10,772,387.77 10,776,187.77
Subsequent years 6,240,000.00 6,241,600.00
Total 61,209,654.32 81,442,675.32
2. Implementation of the commitments in the previous period
Inapplicable
XIII. Sequential Events after the Balance Sheet Day
1. Note to important sequential events after the balance sheet day
Inapplicable
2. Note to profit distribution after the balance sheet day
Inapplicable
In CNY
Profit or dividend to be distributed 39,276,787.00
Profit or dividend announced for distribution after
39,276,787.00
review and approval
3. Note to other sequential events after the balance sheet day
With approval of the 8th meeting of the Seventh Board of Directors held on February 27, 2014 and 2013
Annual General Meeting held on June 10, 2014, the Company determined the profit distribution plan in
2013 which is summarized as follows: with 392,767,870 shares as at December 31,2013 as the base,
the Company was to distribute cash dividend to the whole shareholders at the rate of CNY 1.00 for every
10 shares (with tax inclusive), the total amount of cash dividend to be distributed was CNY
39,276,787.00. The aforesaid profit distribution plan was fully implemented by August 4, 2014.
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
XIV. Note to Other Important Matters
1. Non-monetary assets exchange
Inapplicable
2. Debt restructuring
Inapplicable
3. Enterprise Consolidation
Inapplicable
4. Lease
Inapplicable
5. Outstanding convertible financial instruments at the end of the reporting period
Inapplicable
6. Assets and liabilities measured based on faire value
In CNY
Gain/loss from Change of
Provision for Amount at the end
Beginning of the change of fair accumulative fair
Items impairment in the of the reporting
reporting period value in the value counted to
reporting period period
reporting period gain/loss
Financial asset
Total of the above 0.00 0.00 0.00 0.00 0.00
Financial liabilities 0.00 0.00 0.00 0.00 0.00
7. Foreign currency financial asset and foreign currency financial liabilities
In CNY
Gain/loss from Change of
Provision for Amount at the end
Beginning of the change of fair accumulative fair
Items impairment in the of the reporting
reporting period value in the value counted to
reporting period period
reporting period gain/loss
Financial asset
Subtotal of financial
0.00 0.00 0.00 0.00 0.00
asset
Financial liability 0.00 0.00 0.00 0.00 0.00
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
8. Main contents and significant change of the annuity plan
Inapplicable
9. Others
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 Prop
Propo Propo Propo
Amount ortio Amount Amount Amount
rtion rtion rtion
n
Accounts receivable for which bad debt reserve has been provided based on the combination
Grouping based on
the accounting age
Grouping of the 219,193,03 100. 239,193,03 100.0
0.00 0.00% 0.00 0.00%
designated accounts 9.81 00% 9.81 0%
219,193,03 100. 239,193,03 100.0
Subtotal of grouping 0.00 0.00% 0.00 0.00%
9.81 00% 9.81 0%
219,193,03 239,193,03
Total -- 0.00 -- -- 0.00 --
9.81 9.81
Note to the categories of accounts receivable
Accounts receivable with significant single amount and with reserve for bad debt provided on single item
basis at the end of the reporting period
Inapplicable
In grouping, accounts receivable with the reserve for bad debt provided based on the age analysis
method.
Inapplicable
In grouping, the account receivable for which the reserve for bad debt provided based on the percentage
balance method
Inapplicable
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
In grouping, the account receivable for which the reserve for bad debt provided based on other method
In CNY
Description Book balance Bad debt reserve
Grouping of the designated
219,193,039.81 0.00
accounts
Total 219,193,039.81 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
(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
Relationship Proportion in the
Organization Names with the Amount Year Nature total accounts
Company receivable
FIYTA Sales Co., Subsidiary 219,193,039.81 Within a year Trade 100.00%
Ltd. receivable
Total - 219,193,039.81 - 17.18%
(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., Ltd. Subsidiary 219,193,039.81 Within a year 100.00%
Total -- 219,193,039.81 -- 100.00%
(7) Accounts due from related parties
In CNY
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
Relationship with the Proportion in the total
Organization Names Amount
Company accounts receivable (%)
FIYTA Sales Co., Ltd. Subsidiary 219,193,039.81 100.00%
Total -- 219,193,039.81 100.00%
(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 Propor Propor Propor Propor
Amount tion Amount tion Amount tion Amount tion
(%) (%) (%) (%)
Other receivables for which bad debt reserve has been provided based on the grouping
Grouping based on the
2,853,479.08 0.22% 170,331.13 5.97% 2,511,372.60 0.19% 153,225.81 6.10%
accounting age
Grouping of the designated 99.78 99.81
1,272,705,268.80 0.00 0.00% 1,335,273,187.22 0.00 0.00%
accounts % %
100.00 100.00
Subtotal of grouping 1,275,558,747.88 170,331.13 0.01% 1,337,784,559.82 153,225.81 0.01%
% %
Total 1,275,558,747.88 -- 170,331.13 -- 1,337,784,559.82 -- 153,225.81 --
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
Proport Bad debt reserve Proport Bad debt reserve
Amount Amount
ion (%) ion (%)
Within a year
Including: -- -- -- -- -- --
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
Subtotal within 93.87 91.44
2,678,444.25 133,922.21 2,296,287.70 116,816.88
a year % %
93.87 91.44
1 to 2 years 2,678,444.25 133,922.21 2,296,287.70 116,816.88
% %
2 to 3 years 110,000.00 3.85% 11,000.00 110,000.07 4.38% 11,000.01
Over 3 years 35,542.50 1.25% 10,662.75 35,542.50 1.41% 10,662.75
Total 29,492.33 1.03% 14,746.17 69,542.33 2.77% 14,746.17
Total 2,853,479.08 -- 170,331.13 2,511,372.60 -- 153,225.81
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 1,272,705,268.80 0.00
Total 1,272,705,268.80
Other receivables with insignificant single amount and provision of bad debt reserve on individual basis
at the end of the 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
Proportion in
Relationship with Nature the total of the
Company names Amount Years
the Company other
receivables (%)
HARMONY Subsidiary 992,622,894.30 Within a year current account 77.82%
FIYTA Sales Subsidiary 143,718,187.30 Within a year current account 11.27%
Emile Chouriet Shenzhen Subsidiary 49,352,735.87 Within a year current account 3.87%
FIYTA Manufacture Subsidiary 34,815,198.29 Within a year current account 2.73%
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
FIYTA Trade Subsidiary 28,164,323.42 Within a year current account 2.21%
FIYTA Technology Subsidiary 22,340,388.56 Within a year current account 1.75%
Shenzhen CATIC Hotel Controlled by the 1,999,999.98 Within a year Rent receivable 0.16%
Management Co., Ltd. same parent
company
FIYTA Hong Kong Limited Subsidiary 1,147,471.00 Within a year current account 0.09%
Total - 1,274,161,198.7 - 99.89%
2
(6) Top Five Debtors of the Other Receivables
In CNY
Proportion in the total
Relationship with the
Company names Amount Years of the other receivables
Company
(%)
HARMONY Subsidiary 992,622,894.30 Within a year 77.82%
FIYTA Sales Subsidiary 143,718,187.30 Within a year 11.27%
Emile Chouriet
Subsidiary 49,352,735.87 Within a year 3.87%
Shenzhen
FIYTA Manufacture Subsidiary 34,815,198.29 Within a year 2.73%
FIYTA Trade Subsidiary 28,164,323.42 Within a year 2.21%
Total -- 1,248,673,339.18 -- 97.90%
(7) Other receivables from related parties
In CNY
Relationship with the Proportion in the total of the
Company names Amount
Company other receivables (%)
HARMONY Subsidiary 992,622,894.30 77.82%
FIYTA Sales Subsidiary 143,718,187.30 11.27%
Emile Chouriet Shenzhen Subsidiary 49,352,735.87 3.87%
FIYTA Manufacture Subsidiary 34,815,198.29 2.73%
FIYTA Trade Subsidiary 28,164,323.42 2.21%
FIYTA Technology Subsidiary 22,340,388.56 1.75%
Shenzhen CATIC Hotel Controlled by the same
1,999,999.98 0.16%
Management Co., Ltd. parent company
FIYTA Hong Kong Limited Subsidiary 1,147,471.00 0.09%
Shenzhen CATIC Group Controlled by the same
150,000.00 0.01%
Training Center parent company
Total -- 1,274,311,198.72 99.91%
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
(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
inconsiste
nce of
Percentag Provision
Voting percentag Cash
e of equity reserve
Initial power e of equity dividend in
Accountin Opening Increase/D Ending in the Impairmen provided in
Investees investment percentag in the the
g method balance ecrease balance investee t reserve the
cost e in the investees reporting
reporting
investee with Voting period
period
power
percentag
e
Shenzhen
Harmony
World Cost 601,307,2 601,307,2 601,307,2 Inapplicabl
0.00 100.00% 100.00% 0.00 0.00 0.00
Watches method 00.00 00.00 00.00 e
Center
Co., Ltd.
Shenzhen
World
Cost 1,400,000. 1,400,000. -1,400,000 Inapplicabl
Watches 0.00 50.00% 50.00% 0.00 0.00 0.00
method 00 00 .00 e
Center
Co., Ltd.
Xi’an
Cost Inapplicabl
Tangcheng 85,000.00 85,000.00 0.00 85,000.00 0.10% 0.10% 0.00 0.00 0.00
method e
Co., Ltd.
Shenzhen
Harmony
Culture Cost 300,000.0 300,000.0 300,000.0 Inapplicabl 300,000.0
0.00 15.00% 15.00% 0.00 0.00
Communic method 0 0 0 e 0
ation Co.,
Ltd.
Harbin Cost 125,000.0 125,000.0 125,000.0 Inapplicabl
0.00 100.00% 100.00% 0.00 0.00 0.00
Harmony method 0 0 0 e
172
FIYTA Holdings Ltd. 2014 Semi-Annual Report
World
Watches
Co., Ltd.
Shenzhen
FIYTA
Sophisticat
ed Cost 9,000,000. 9,000,000. 9,000,000. Inapplicabl
0.00 100.00% 100.00% 0.00 0.00 0.00
Timepiece method 00 00 00 e
s
Manufactu
re Co., Ltd.
FIYTA
(Hong Cost 55,367,52 55,367,52 55,367,52 Inapplicabl
0.00 100.00% 100.00% 0.00 0.00 0.00
Kong) method 0.00 0.00 0.00 e
Co.,Ltd.
Shenzhen
FIYTA
Technolog
Cost 10,000,00 10,000,00 10,000,00 Inapplicabl
y 0.00 100.00% 100.00% 0.00 0.00 0.00
method 0.00 0.00 0.00 e
Developm
ent Co.,
Ltd.
Shenzhen
Symphony Cost 5,000,000. 5,000,000. 5,000,000. Inapplicabl
0.00 100.00% 100.00% 0.00 0.00 0.00
Trading method 00 00 00 e
Co., Ltd.
FIYTA
Cost 50,000,00 50,000,00 50,000,00 Inapplicabl
Sales Co., 0.00 100.00% 100.00% 0.00 0.00 0.00
method 0.00 0.00 0.00 e
Ltd.
Shanghai
Watch Equity 39,916,50 43,237,94 -504,563.2 42,733,37 Inapplicabl
25.00% 25.00% 0.00 0.00 0.00
Industry method 0.00 0.12 1 6.91 e
Co., Ltd.
772,501,2 775,822,6 -1,904,563 773,918,0 300,000.0
Total -- -- -- -- 0.00 0.00
20.00 60.12 .21 96.91 0
Note to investment in long term equity:
During the reporting period, the Company completed cancellation of Shenzhen World Watches Center
Co., Ltd., one of the Company’s subsidiaries, on May 5, 2014, and recovered investment capital
amounting to CNY 1,400,000.00.
4. Operating Revenue and Costs
(1) Operating Revenue
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Revenue from principal
42,966,203.07 44,722,706.24
business
Revenue from other
50,379.57
business
Total 42,966,203.07 44,773,085.81
Operating costs 6,497,016.07 6,806,000.42
(2) Principal Businesses Based on Sectors
In CNY
Amount incurred in the previous
Amount incurred in the reporting period
Sectors period
Operating revenue Operating costs Operating revenue Operating costs
Property lease 42,837,767.17 6,368,580.17 44,722,706.24 6,743,346.45
Industry 128,435.90 128,435.90
Total 42,966,203.07 6,497,016.07 44,722,706.24 6,743,346.45
(3) Principal Businesses Based on Products
In CNY
Amount incurred in the previous
Amount incurred in the reporting period
Description of Products period
Operating revenue Operating costs Operating revenue Operating costs
Property lease 42,837,767.17 6,368,580.17 44,722,706.24 6,743,346.45
Manufacture & sales of
128,435.90 128,435.90
FIYTA watches
Total 42,966,203.07 6,497,016.07 44,722,706.24 6,743,346.45
(4) Principal Business (based on regions)
In CNY
Amount incurred in the previous
Amount incurred in the reporting period
Regions period
Operating revenue Operating costs Operating revenue Operating costs
Northeast China
North China
Northwest China 2,708,299.98 2,700,634.30 1,750,000.00 2,114,283.80
Southwest China
East China
South China 40,257,903.09 3,796,381.77 42,972,706.24 4,629,062.65
174
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Total 42,966,203.07 6,497,016.07 44,722,706.24 6,743,346.45
(5) Operating revenue from the company’s top five customers
In CNY
Proportion in the
Description of the Customers Total operating revenue Company’s total
sales income (%)
Shenzhen Tencent Computer System Co., Ltd. 15,711,703.00 36.57%
Oracle Software Research and Development
2,798,580.00 6.51%
(Shenzhen) Co., Ltd.
Shenzhen CATIC Hotel Management Co., Ltd. 2,708,299.98 6.30%
China Construction Bank Co., Ltd., Shenzhen
1,862,208.00 4.33%
Branch
Industry and Commercial Bank of China Co., Ltd. 1,420,317.36 3.31%
Total 24,501,108.34 57.02%
Note to the operating revenue
Inapplicable
. Return on investment
(1) Statement 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
98,601,444.91 74,971,478.14
cost method
Return on long term equity investment based on
-504,563.21 108,440.73
equity method
Total 98,096,881.70 75,079,918.87
(2) Return on long term equity investment based on cost method
In CNY
Amount incurred Amount incurred Cause of increase/decrease in
Investees in the reporting in the previous the report period over the
period period previous period
Shenzhen FIYTA Sophisticated The investee’s net profit
98,601,444.91 64,933,629.27
Timepieces Manufacture Co., Ltd. increased in 2013 over 2012
Shenzhen FIYTA Technology The investee’s retained
0.00 10,037,848.87
Development Co., Ltd. earnings at the end of the year
Total 98,601,444.91 74,971,478.14 --
(3) Return on long term equity investment based on equity method
175
FIYTA Holdings Ltd. 2014 Semi-Annual Report
In CNY
Amount incurred Amount incurred Cause of increase/decrease in
Investees in the reporting in the previous the report period over the
period period previous period
The return on the long term
equity investment in Shanghai
Watch Industry calculated in
the reporting period includes
the enjoyable share of the
change of the investee’s profit
Shanghai Watch Industry Co., Ltd. -504,563.21 108,440.73
amounting to CNY 269,017.17
and the initially appraised
appreciation of the investee’s
sold assets amounting to CNY
773,580.38 as offset in the
reporting period.
Total -504,563.21 108,440.73 --
Note to the return on investment
Inapplicable
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 106,199,470.46 82,763,509.21
Plus: Provisions for impairment of assets -4,394.68 210,607.55
Depreciation of fixed assets, oil and gas assets,
7,383,518.35 7,480,004.66
production based biological asset
Amortization of intangible assets 714,415.41 695,545.69
Long-term expenses to be apportioned 814,361.94 4,662,349.88
Loss (income is stated with “-“) from disposal of fixed
-25,457.85 0.00
assets, intangible assets and other long term assets
Loss on retirement of fixed assets (income is stated
0.00 0.00
with “-“)
Loss from change of fair value ((income is stated with
0.00 0.00
“-“)
Financial expenses (income is stated with “-“) 1,471,843.10 0.00
Investment loss (income is stated with “-“) -98,096,881.70 -75,079,918.87
Decrease of deferred income tax asset (increase is
0.00 69,848.11
stated with “-“)
Increase of deferred income tax asset (decrease is
0.00 0.00
stated with “-“)
176
FIYTA Holdings Ltd. 2014 Semi-Annual Report
Decrease of inventories (increase is stated with “-“) 0.00 62,653.97
Decrease of operative items receivable (increase is
118,627,608.11 -176,854,871.80
stated with “-“)
Increase of operative items receivable (decrease is
-2,493,847.51 -5,136,726.22
stated with “-“)
Others 0.00 0.00
Net cash flow arising from operating activities 134,590,635.63 -161,126,997.82
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 45,096,060.51 31,841,346.45
Less: Opening cash balance 27,929,968.24 51,372,778.02
Net increase in cash and cash equivalents 17,166,092.27 -19,531,431.57
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:
Gain/loss from disposal of
Loss from disposal of non-current assets, including
part of the obsolete office
the part written-off with the provision for impairment 6,708.57
fixed assets in the
of assets
reporting period.
Government subsidy recognized in current gains
and losses (excluding those closely related to the For the detail, refer to
Company’s business and granted under the state’s 1,726,500.00 Note 63 (2) government
policies according to certain quota of amount or subsidy
volume)
Other various
Income and expenses from the business other than
906,133.12 non-operating revenue
the above items
and expenditure
Less: Amount affected by the income tax 528,628.60
Total 2,110,713.09 --
It is necessary to explain the reason on item-by-item disclosure and confirmation for the government
subsidy counted to the current gain/loss as recurring gain/loss.
Inapplicable
2. Discrepancy in accounting data between IAS and CAS
(1) Discrepancy in net profit and net assets as disclosed in the financial report respectively
according to IAS and CAS
177
FIYTA Holdings Ltd. 2014 Semi-Annual Report
In CNY
Net profit attributable to the Company’s Net asset attributable to the
shareholders Company’s shareholders
End of the Beginning of the
Reporting period Previous period
reporting period reporting period
Based on CAS 88,283,873.10 69,097,419.87 1,587,697,962.33 1,536,434,684.56
Items and amount adjusted according to IAS
(2) Discrepancy in net profit and net assets as disclosed in the financial report respectively
according to the accounting standards outside Mainland China and CAS
In CNY
Net profit attributable to the Company’s Net asset attributable to the
shareholders Company’s shareholders
End of the Beginning of the
Reporting period Previous period
reporting period reporting period
Based on CAS 88,283,873.10 69,097,419.87 1,587,697,962.33 1,536,434,684.56
Items and amount adjusted according to the accounting standards outside Mainland China
(3) Note to the discrepancy in accounting data under the accounting standards outside Mainland
China
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 shareholders of ordinary 5.58% 0.225 0.225
shares
Net profit attributable to the
Company’s shareholders of ordinary
5.44% 0.219 0.219
shares less the non-recurring
gains/losses
4. Notes to the Abnormalities in the Major Items of the Company’s Accounting Statements and
the Causes
(1) Items on the Balance Sheet
A. Monetarty fund amounted to CNY 159,843,756.99, a 48.47% growth over year beginning. The growth
178
FIYTA Holdings Ltd. 2014 Semi-Annual Report
was mainly due to
a. the operational net cash flow-in in the reporting period amounting to CNY 138 million;
b. cash payment for purchase/construction of fixed assets, intangible assets and other long term asset in
the reporting period amounting to about CNY 64.60 million.
c. investment for construction of Guangming New Zone project amounting to CNY 12.59 million;
d. net cash flow-in from the newly added bank loan amounting to about CNY 50.75 million
e. interest payment in the reporting period and the first year interest for the company bonds amounting to
about CNY 57.37 million;
B. Notes receivable at the end of the reporting period amounted to CNY 18,942,659.00, a growth of
166.80% over the year beginning. The growth was mainly due to that FIYTA Technology, one of the
Company’s subsidiaries, settled the trade receivables with its customers by means of notes receivable;
C. Accounts receivable at the end of the reporting period amounted to CNY 429,298,599.75, a 32.31%
growth over the year beginning. The growth was mainly due to that the overall sales size kept growing
while the interim settlement of the shopping mail’s normal settlement period relatively lagged behind.
D. The advance payment at the end of the reporting period amounted to CNY 30,242,553.26, a 30.46%
drop over the year beginning. The drop was mainly due to that partial advance payment for shop
refurbishment was already settled in the current year;
E. The other receivables at the end of the reporting period amounted to CNY 48,674,506.86, a 20.37%
growth over the year beginning. The growth was mainly due to that payment for the counter security
deposit increased.
F. Inventories at the end of the reporting period amounted to CNY 2,082,397,057.72, a 1.93% drop over
the year beginning. The drop was mainly due to that the Company took measures and effectively
controlled the growth of inventories;
G. Other current assets at the end of the reporting period amounted to CNY 9,297,764.83, a 69.82%
drop over the year beginning. The drop was mainly due to that the input VAT to be offset at the
beginning of the reporting period was already offset in the reporting period;
H. Fixed assets at the end of the reporting period amounted to CNY318,971,712.52, a 3.94% growth
over the year beginning. The growth was mainly due to that the refurbishment and restructuring of Xi’an
FIYTA Building was successfully completed upon inspection;
I. The construction-in-process at the end of the reporting period amounted to CNY 20,154,445.12, a
204.99% growth over the year beginning. The growth was mainly due to the investment for construction
of the watch production base at Guangming New Zone in the reporting period;
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
J. Deferred income tax asset at the end of the reporting period amounted to CNY 8,708,125.05, a
11.74% growth over the year beginning. The growth was mainly due to increase of the internal sales
profit unrealized in the reporting year;
K. Short term loan at the end of the reporting period amounted to CNY 880,000,000.00, a 13.98%
decrease over the year beginning. The decrease was mainly due to that the Company borrowed CNY
150,000,000.00 from AVIC International Holdings Limited, for replacing the bank’s short term loan and
counted to item of other payables for counting;
L. The accounts payable at the end of the reporting period amounted to CNY 194,912,347.73, a 12.34%
decrease over the year beginning. The decrease was mainly due to that the Company controlled the
purchase progress and size in the reporting period and the payment for goods unsettled at the end of the
reporting period decreased;
M. Advance receipt at the end of the reporting period amounted to CNY 16,871,862.79, a 74.53% growth
over the year beginning. The growth was mainly due to increase of the payment for goods received in
advance from the customers in the reporting period.
N. Other payables at the end of the reporting period amounted to CNY 191,384,823.80, a 397.69%
growth over the year beginning. The growth was mainly due to that the Company borrowed CNY
150,000,000.00 from AVIC International Holdings Limited in the reporting period for replacing the bank
short term loan;
O. Other current liabilities at the end of the reporting period amounted to CNY 14,807,907.72, a 200.71%
growth over the year beginning. The growth was mainly due to increase of the accrued expenses in the
current year;
P. Long term loan at the end of the reporting period amounted to CNY 218,121,283.35, a 25.88% growth
over the year beginning. The growth was mainly due to the supplementation of the Company’s operating
capital;
(2) Items on the Statement of Profit
A. The Company realized operating revenue from January to June, 2014 amounting to CNY
1,642,614,790.97, an 8.90% growth over the same period of the previous year. The growth was mainly
due to that sales income from FIYTA brand watches and famous brand watches increased over the
same period of the previous year;
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B. The operating costs incurred from January to June, 2014 amounted to CNY 10,380,60709.77, a
6.92% growth over the same period of the previous year. The growth was mainly due to growth of
revenue. The discrepancy between its growth proportion and the growth proportion of the operating
revenue was 1.98%. The discrepancy was mainly due to that the product structure changed;
C. The sales costs incurred from January to June, 2014 amounted to CNY 349,761,320.39, a 10.92%
growth over the same period of the previous year. The growth was mainly due to that:
a) expansion of the business size lead to increase of the employees’ remuneration amounting to CNY
14.03 million;
b) expansion of shops lead to growth of expenses to be apportioned, such as the counter refurbishment
costs, by CNY 4.19 million;
c) such costs for FIYTA watch promotion, planning activities, etc., as market promotion expenses,
advertisement expenses and exhibition costs, etc. increased by about CNY 8.25 million;
d) increase of shops lead to increase of payment for rental, shopping mall expenses, etc. by CNY 5.63
million.
D. Administrative expenses incurred from January to June, 2014 amounted to CNY 8,485,2192.92, an
8.47% growth over the same period of the previous year. The growth was mainly due to that expansion
of the business size lead to increase of the employees’ remuneration;
E. Financial costs incurred from January to June, 2014 amounted to CNY 54,196,678.49, a 13.33%
growth over the same period of the previous year. The growth was mainly due to growth of the loan size
and some rise of the market interest rate of loans in the current year.
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FIYTA Holdings Ltd. 2014 Semi-Annual Report
Section 10 Documents Available for Inspection
I. Accounting Statements signed by and affixed with the seals of the legal representative, chief
accountant and chief financial officer.
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 in
the reporting period.
Note: Table of contents of the documents the Company should disclose include:
(I) Financial statements signed by and affixed with the seals of the legal representative, chief financial
officer and manager of the accounting department.
(II) Original of the auditor’s report (if any) signed by and affixed with the official seal of the accounting
firm and signed by and affixed with the seal of the CPAs.
(III) Originals of all the Company’s documents and manuscripts of the announcements disclosed on the
website designated by China Securities Regulatory Commission in the reporting period.
(IV) The Semi-annual Report published in other stock market.
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