FIYTA Holdings Ltd. 2015 Semi-Annual Report
FIYTA HOLDINGS LTD.
2015 Semi-Annual Report
August, 2015
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FIYTA Holdings Ltd. 2015 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.
Except the following director, all the other directors personally attended the board meeting for reviewing
the Annual Report:
Name of the director failed Titles of the directors Cause of failure in attending Names of the attorneys
in attending the board failed in attending the board the board meeting
meeting personally meeting personally personally
Cao Zhen Director Business trip Wang Mingchuan
The Company is not going to conduct interim dividend distribution, bonus share distribution or
conversion of reserve into share capital.
Mr. Xu Dongsheng, the Company leader, Mr. Hu Xinglong, chief financial officer, and Mr. Hu Xinglong,
the manager of the accounting department (treasurer) hereby confirm the authenticity and completeness
of the financial report enclosed in this Annual Report.
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FIYTA Holdings Ltd. 2015 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. 2015 Semi-Annual Report
Definition
Refers
Terms to be defined Definition
to
Refers
This Company, the Company or Fiyta FIYTA Holdings Ltd.
to
Refers
AVIC International Holdings AVIC International Holdings Limited
to
Refers
HARMONY Shenzhen Harmony World Watches Center Co., Ltd.
to
Refers
Rainbow Supermarket Rainbow Supermarket Co., Ltd.
to
Refers
CATIC Real Estate CATIC Real Estate Co., Ltd.
to
Refers
CATIC Property CATIC Property Management Co., Ltd.
to
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
Section 2 Company Profile
I. Company Profile
Abbreviation of the stock FIYTA A, FIYTA B Stock Code 000026 and 200026
Stock Exchange Listed with Shenzhen Stock Exchange
Company Name in Chinese 飞亚达（集团）股份有限公司
Abbreviation of company
飞亚达公司
name in Chinese (if any)
Company Name in English
(if any) FIYTA HOLDINGS LTD.
Abbreviation of Company
FIYTA
Name in English (if any)
Legal Representative of the
Xu Dongsheng
Company
II. Liaison Person and Way of Communication
Secretary of the Board Securities Affairs Representative
Names Lu Wanjun Zhang Yong
th
th 20 Floor, FIYTA Technology
20 Floor, FIYTA Technology
Liaison Address Building, Gaoxin S. Road One, Building, Gaoxin S. Road One,
Nanshan District, Shenzhen
Nanshan District, Shenzhen
Tel. 0755－86013198 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 Companys 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
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
There is no change in the name of the newspapers designated for disclosing the information, internet web site designated
by China Securities Regulatory Commission for publishing the companys semi-annual report: and place of the companys
semi-annual report prepared for inquiry. For the detail, please refer to 2014 Annual Report
3. Changes of the Registration Data
Registration
Registration Registration number of the Tax registration Organization
date place business number code
licence
Shenzhen
Municipal l
440301520100
Initial registration March 30, 1990 Administration 19218978-3 19218978-3
018
for Industry and
Commerce
Market
Supervision
Registration at the end of 440301103196 440301192189
April 20, 2015 Administration 19218978-3
the reporting period 089 783
of Shenzhen
Municipality
Date of inquiry at the
designated website for
Inapplicable
disclosing provisional
announcements (if any)
Inquiry index at the
designated website for
Inapplicable
disclosing provisional
announcements (if any)
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
Section 3 Financial Highlights
I. Summary of Accounting/Financial Data
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to change
of the accounting policy and correction of accounting errors?
No
□ Yes √ No
Same period of the Year-on-year
Reporting period
previous year increase/decrease
Turnover in CNY 1,683,793,247.59 1,642,614,790.97 2.51%
Net profit attributable to the
73,109,419.73 88,283,873.10 -17.19%
Companys shareholders, in CNY
Net profit attributable to the
Companys shareholders less the 71,958,085.27 86,173,160.01 -16.50%
non-recurring items, in CNY
Net cash flows arising from operating
172,253,778.56 137,998,679.39 24.82%
activities, in CNY
Basic earning per share (CNY/share) 0.186 0.225 -17.33%
Diluted earning per share
0.186 0.225 -17.33%
(CNY/share)
Return on equity, weighted average
4.36% 5.58% -1.22%
(%)
Increase/decrease at
the end of the reporting
End of reporting period End of previous year
period over the end of
the previous year
Total assets, in CNY 3,820,850,106.95 3,657,781,647.20 4.46%
Net assets attributable to the
Companys shareholders (owners
1,674,397,739.63 1,633,401,930.64 2.51%
equity attributable to the Companys
shareholders, in CNY)
II. Difference in the Accounting Data based respectively on the Chinese Accounting Standards
(CAS) and International Accounting Standards (IAS)
1. Differences in the net profit disclosed in the financial report & the net assets attributable to the Companys shareholders
respectively according to the IAS and the CAS.
Inapplicable
2. Didfferences in the net profit disclosed in the financial report & the net assets attributable to the Companys
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
shareholders according to both the IAS and the CAS
Inapplicable
III. Non-recurring gain/loss items and the amount involved
In CNY
Items Amount Note:
It refers to the gain/loss from
Loss from disposal of non-current assets, including the
34,200.78 disposal of the office fixed
part written-off with the provision for impairment of assets
assets in the current period
Government subsidy recognized in current gains and
For the detail, refer to Note
losses (excluding those closely related to the Companys 7.69 government subsidy
1,603,451.99
business and granted under the states policies according counted to the current profit
and loss.
to certain quota of amount or volume)
Income and expenses from the business other than the Other various non-operating
-133,218.09
above items revenue and expenditure
Less: Amount affected by the income tax 353,100.22
Total 1,151,334.46 --
For the Companys 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
Section 4 Report of the Board of Directors
I. Overview
During the reporting period, Chinas overall economical situation and watch retail industry both were confronted with
enormous pressure. Under such a background, the Company continued to insist on the principle of leading various work
with the brand strategy, and carried forward integration of the key value chain through the business model of “products +
channels” and improved the quality service ability. During the reporting period, the Company took the “values, innovation,
adjustment, and profit making” as the theme of work, carried forward various management innovations in a down-to-earth
way, realized operating revenue amounting to CNY 1,683,793,247.59 with year-on-year growth of 2.51%; realize net profit
amounting to CNY 73,109,419.73, a year-on-year drop of 17.19%.
Despite the sluggish market of the domestic famous brand watches during the reporting period, the Company still kept
adjusting the brand and channel structure in its HARMONY world watch retail business, focused on the work dimensions
of “upgrading the individual shops, improving the gross profit, optimizing the inventories and expanding the repairing
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
service business”; meanwhile, enthusiastically carried forward innovation of business model and development of new
business. During the reporting period, HARMONY successfully ensured business development and stabilized the market
share through various measures, realized operating revenue amounting to CNY 1,130,882,784.123 with year-on-year
drop of 2.89%.
During the reporting period, despite the domestic retail market generally being confronted with increasing pressure, the
Company still kept upgrading its product R & D and design ability and customer communication ability for its FIYTA watch
business, focused on the work dimensions of realizing financial objectives, capacity construction and upgrading, channel
and individual shop improvement, brand promotion and business platform development. Meanwhile, the Company kept
carrying forward development of e-commerce and BRAND GALLERY. During the reporting period, the Company kept
improving FIYTA watch channel quality and customer satisfaction, kept improving the comprehensive competitive power,
realized operating revenue amounting to CNY 494,755,397.54 with year-on-year growth of 17.57%.
During the reporting period, the Company kept steady income from its properties. The Company smoothly carried forward
the work of private offering of A-shares and cooperation of Beibiao Watch Industry.
II. Analysis on Principal Business
Year-on-year change of the principal financial data
In CNY
Same period of the Year-on-year Causes of
Reporting period
previous year increase/decrease Movements
Operating revenue 1,683,793,247.59 1,642,614,790.97 2.51% Inapplicable
Operating cost 1,037,981,721.35 1,038,060,709.77 -0.01% Inapplicable
Sales expenses 386,297,227.92 349,761,320.39 10.45% Inapplicable
Administrative
100,131,176.65 84,852,192.39 18.01% Inapplicable
expenses
Financial expenses 50,889,786.79 54,196,678.49 -6.10% Inapplicable
The preferential
enterprise income
tax rate enjoyed by
the manufacture
company, one of the
Companys
subsidiaries, as a
hi-tech enterprise
enjoying key support
from the central
government was due
on December 31,
Income tax expenses 22,261,660.23 16,573,527.31 34.32%
2014 and the
company is in
process of
application for the
new tax rate
preference. During
the reporting period,
the enterprise
income tax was
counted and paid
based on 25% for
time being.
R & D investment 18,788,221.52 11,886,999.88 58.06% It was mainly due to
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
increase of the R & D
expenses for
watches during the
reporting period
Net cash flow from
172,253,778.56 137,998,679.39 24.82% Inapplicable
operating activities
It was mainly due to
increase of
investment in
Net cash flow from Guangming New
-110,919,548.69 -77,188,078.38 43.70%
investment activities Zone Watch
Industrial Base
during the reporting
period.
It was mainly due to
increase of the
special loan for
Guangming New
Net cash flow from Zone Watch
-17,014,123.13 -8,915,791.60 90.83%
financial activities Industrial Base and
some decrease of
loan for the working
capital during the
reporting period
Net increase of cash
43,999,662.37 52,180,646.25 -15.68% Inapplicable
and cash equivalents
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 companys prospectus, letter of intent on the offering and asset reorganization report, etc.
Inapplicable
Review and summary of the progress of the operaton plan in the reporting period the Company disclosed previously
Inapplicable
III. Composition of Principal Businesses
In CNY
Increase/decr
Increase/decr Increase/decr
ease of
ease of ease of gross
principal
Operating Operating revenue in the profit rate over
Gross margin business cost
revenue costs same period the same
over the same
of the period of the
period of
previous year previous year
previous year
Sectors
1,625,638,18 1,029,438,16
Watches 36.67% 2.54% 0.18% 1.49%
1.66 8.65
47,389,948.9
Leases 6,946,511.39 85.34% 10.63% 9.07% 0.21%
0
Products
Sales of 1,130,882,78 863,692,919.
23.63% -2.89% -1.76% -0.88%
famous brand 4.12 81
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
watches
Sales of
494,755,397. 165,745,248.
FIYTA 66.50% 17.57% 11.67% 1.77%
54 84
watches
Property 47,389,948.9
6,946,511.39 85.34% 10.63% 9.07% 0.21%
lease 0
Regions
Northeast 165,021,675. 105,560,855.
36.03% 8.21% -1.19% 6.09%
China 21 29
277,981,674. 188,298,512.
North China 32.26% 15.20% 7.73% 4.70%
69 68
Northwest 277,441,301. 186,322,822.
32.84% -3.48% -9.93% 4.81%
China 52 14
Southwest 186,168,777. 122,478,982.
34.21% 13.05% 6.77% 3.87%
China 01 60
229,325,029. 143,157,110.4
East China 37.57% 4.52% -4.29% 5.74%
32 9
537,089,672. 290,566,396.
South China 45.90% -4.57% 3.35% -4.15%
81 84
IV. Analysis on Core Competitiveness
The Companys 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 ability of product innovation, ability of high quality services, ability of
marketing communications, ability of knowledgement management and ability of management of strategic human
resource.
During the reporting period, the Company kept carrying forward technology research and development, construction of the
platform of innovative design and the innovation work and achieved great success. Both the Companys technology center
and the innovative design center achieved great success in construction of the innovative mechanism, platform and
innovation environment and achieved a good success in talent caltivation, technological achievements, etc., and
maintained the leading posiion in the sane domestic industry. One of the Companys technology projects has passed
project acceptance inspection at the municipal level of Shenzhen. During the first half year, the Company was granted 3
patents for utility models and 12 design patents; took lead or participated in preparation or amendment of and totally
issued 4 industrial standards.
V. Analysis on Investment Status
1. External Equity Investment
(1) External Investment
Inapplicable
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
(2) Holding of the Equipty in Financial Enterprises
Inapplicable
(3) Investment in Securities
Inapplicable
(4) Explanation on Holding Equity in Other Listed Companies
Inapplicable
2. Entrusted Financing, Investment in Derivative Products and Entrusted Loan
(1) Entrusted Financing
Inapplicable
(2) Investment in Derivatives
Inapplicable
(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
0
period
Total raised capital accumulatively invested 40,000
Total raised capital whose application has been
0
changed in the reporting period
Total raised capital whose application has been
0
changed accumulatively
Proportion of the total raised capital whose
0.00%
application has been changed accumulatively
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
Note to Application of the Raised Capital
The Company held the 33rd meeting of the Sixth Board of Directors on June 19, 2012. The meeting reviewed and
approved the Proposal of Issuing Company Bonds, etc. according to which, the Company planned to issue company
bonds with a size not exceeding CNY400 million and with a term not exceeding 5 years (with 5 years inclusive) which
would be used for replacing bank loan and replenishing the working capital. On September 9, 2012, approved through
verification by China Securities Regulatory Commission (CSRC) with Document ZHENG JIAN XU KE [2012] No.
1209, the Company was approved to issue company bonds with the size not exceeding CNY 400 million. The
Company issued CNY 400 million of bonds in the current period. After deduction of the issuing costs, the net raised
capital amounting to CNY396.9 million was remitted to the bank account designated by the Company on March 5,
2013.
RSM China CPAs, the CPAs engaged by the Company issued the capital verification reports of ZHONG RUI YUE HUA
YAN ZI [2013] No. 0053, ZHONG RUI YUE HUA YAN ZI [2013] No. 0054 and ZHONG RUI YUE HUA YAN ZI [2013]
No. 0055 respectively for the frozen capital for subscription of the on-line bond issuing, the frozen capital for
subscription of the off-line placement and the actual raised capital conditions. Approved by Shenzhen Stock Exchange
with Document SHEN ZHENG SHANG [2013] No. 99, the bonds have been listed for trading with both SZSE
Centralized Bidding System and the Comprehensive Agreement Based Transaction Platform commencing from March
29, 2013 with the abbreviation of the security as “12 YADA BOND” and security code as “112152”. The issuing of the
company bonds has been completed. The capital raised from the issuing was remitted to the bank account designated
by the Company on March 5, 2013. Up to now, the Company has used up 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
Date
Amount Investm Has
when
Has the Total accumul ent Has the significa
the
project promise atively progres predicte nt
Total Amount project Result
Promised investment been d invested s by the d change
investm invested has realized
projects and change investm up to end of operatio taken
ent after in the reached in the
investment with the d ent the end the n result place in
adjustm report the reportin
over-raised capital (includin with of the report been the
ent (1) period predicte g period
g partial raised report period reached feasibilit
d
change) capital period (3) = ? y of the
applicab
(2) (2)/(1) project?
le status
Investment projects as committed
Repayment of bank 100.00
No 30,000 30,000 0 30,000 0 Yes No
loan %
Replenishing the 100.00
No 10,000 10,000 0 10,000 0 Yes No
working capital. %
Sub-total of investment
-- 40,000 40,000 0 40,000 -- -- 0 -- --
projects as committed
Investment with over-raised capital
Subtotal of investment
with over-raised -- 0 0 0 0 -- -- 0 -- --
capital
Total -- 40,000 40,000 0 40,000 -- -- 0 -- --
Description and
causes of failure in
realizing the planned
Inapplicable
progress or expected
earning (based on
specific projects)
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
Explanation on great
change in project Inapplicable
feasibility
Amount of the Inapplicable
over-raised proceeds,
application and
progress of application
Change of the place Inapplicable
for implementation of
the investment project
with the raised capital
Adjustment of the way Inapplicable
for implementation of
the investment project
with the raised capital
Advance investment in Inapplicable
the investment project
with raised capital and
the replacement
Provisional Inapplicable
replenishment of the
working capital with
the idle raised capital
Amount of balance of Inapplicable
the raised capital in
project implementation
and the cause
Application and the
place of going of the
Inapplicable
raised capital not yet
used
Problems and other
conditions existing in
application of the Inapplicable
raised capital and
disclosure
(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
Sectors
Company Company products Registered Total Net assets Operatin
engaged Turnover Net profit
Names type and capital assets g profit
in
services
Shenzhe Mainly
n 600,000, 14,752
Harmony engaged 2,128,15 716,046, 1,164,61 15,303,03
Subsidiary Retail 000(CN ,050.1
World in sales of 2,653.54 328.83 3,449.19 9.40
Y) 0
Watches
Center world
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
Co., Ltd. famous
brand
watch,
including
purchase,
sales and
maintenan
ce service
of
timepieces
and parts
Sales and
repairing
of watches
and
FIYTA Subsidiary spares 50,000,0 817,430, 40,061,6 463,030, 4,727, 3,424,692.
Sales Retail
and parts 00(CNY) 175.61 34.21 790.49 455.67 74
Co., Ltd.
and sales
of jewelry
and
ornments
Mainly
engaged
in
production
and sales
of FIYTA
watches,
including
Shenzhe productin
n FIYTA
Sophistic and
ated Manufactu maintenan 99,059
10,000,0 178,918, 90,855,6 263,660, 74,901,27
Timepiec Subsidiary ,746.3
re ce of 00(CNY) 282.57 50.97 912.02 6.50
es 6
Manufac clocks and
ture Co.,
Ltd. watches,
and
driving
units,
spares
and parts,
sophisticat
ed
timepieces
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
R & D,
production
and sales
of
watches,
Shenzhe
n FIYTA production
Technolo Manufactu , 10,947
10,000,0 76,516,1 49,378,7 93,044,6 9,476,598.
gy Subsidiary ,350.9
re machining, 00(CNY) 10.46 21.47 90.56 96
Develop 9
ment sales and
Co., Ltd.
technology
developm
ent of
sophisticat
ed parts.
Mainly
engaged
in trade
and
FIYTA
(Hong overseas 65,060,0 420,825, 175,508, 58,683,6 711,72
Subsidiary Retail -53,248.17
Kong) market 00(HKD) 662.45 421.64 54.24 8.77
Limited
developm
ent of
FIYTA
watches
Sales of
clocks and
watches
and gifts
and
Shenzhe
n consultatio
Sympho 5,000,00 27,107,0 882,021. 24,624,6 4,515, 3,386,690.
Subsidiary Retail n of
ny 0(CNY) 79.30 35 43.84 587.01 26
Trading relevant
Co., Ltd.
informatio
n and
other
domestic
trading
Sales of
Mutual
Shangha watches
shareholding Manufac
i Watch 15,350,0 111,055, 92,336,9 46,811,2 1,083, 1,220,537.
and
Industry company ture 00(CNY) 567.20 25.34 42.00 911.31 78
Co., Ltd. spares
and parts
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
5. Projects Invested with Funds not Raised through Share Offering
Inapplicable
VI. Prediction of the Operation Performances from January to September 2015
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
th
2014 Profit Distribution Plan was reviewed and approved at the 17 meeting of the Seventh Board of Directors held on
March 10, 2015 and 2014 Annual General Meeting held on June 17, 2015. According to the plan, the Company took the
share capital as at December 31, 2014 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 10, 2015. For more information, refer to
th
the Announcement on the Resolution of the 17 Meeting of the Seventh Board of Directors No. 2015-003, Announcement
on the Resolution of 2014 Annual General Meeting No. 2015-020 and the Announcement on the Implementation of the
Equity Distribution of Year 2014 No. 2015-024.
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
transparant:
17
FIYTA Holdings Ltd. 2015 Semi-Annual Report
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
Inapplicable
Section 5 Significant Events
I. Overview of the Corporate Governance
In year 2014, the Company continuously improved the Companys 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 Companys
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 Companys supreme organ and has the power of deciding the Companys operation policy
and investment plan, reviewing and approving the Companys 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 Companys 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 Companys 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 Companys external investment, acquisition and sales of
assets, assets pledgement, external guarantee, related transactions, etc., decides establishment of the Companys
internal management organs, engagement and disengagement of the Companys 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 Companys supervisory organ in charge of supervising the directors, managers and
18
FIYTA Holdings Ltd. 2015 Semi-Annual Report
other senior executives in performaning duties according to the law and proposes dismissal of any director or senior
executive who breaches the law, the administrative rules and regulations, the Articles of Association or the General
Meetings 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 Companys 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.
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
3. Enterprise Consolidation
Inapplicable
VI. Implementation of the Company’s Equity Incentive Plan and its Influences
Inapplicable
19
FIYTA Holdings Ltd. 2015 Semi-Annual Report
VII. Material Related Transactions
1. Related transactions in connection with daily operation
Amoun Propor
Descri Princip t of the tion in Way of
ption le of Price related the Amoun settle Similar Discl
Has it
Type t of
excee
Relate of pricing of transa amoun transa ment market Disclo osur
ded
Relatio of ctions
the
d Relate of the related ction t of the approv for the price sure e
nship related amoun
ed (in
Parties d related transa (in similar t related obtain date inde
CNY
parties approv
10,000
Transa transa ctions CNY transa ed? transa able x
)
ctions ctions 10,000 ctions ction
) (%)
Bank ww
Admi Prop
CATI Com acco w.c
nistra erty Nego Marc
C mon 144.8 100.0 unt ninf
tive mana tiated No h 10,
Prop contr 9 0% transf o.co
expe geme price 2015
erty oller erenc m.c
nses nt fee
e n
Bank ww
Rainb Shop
Com acco w.c
ow ping Nego Marc
mon Sales 224.5 8.72 unt ninf
Supe mall tiated No h 10,
contr costs 8 % transf o.co
rmark expe price 2015
oller erenc m.c
et nses
e n
Bank ww
CATI Const
Com Proje acco w.c
C ructio Nego Marc
mon ct 100.0 unt ninf
Curta n-in-p tiated 21 No h 10,
contr paym 0% transf o.co
in roces price 2015
oller ent erenc m.c
Wall s
e n
Bank ww
Const
CATI Com Proje acco w.c
ructio Nego Marc
C mon ct 100.0 unt ninf
n-in-p tiated 8.9 No h 10,
Buildi contr paym 0% transf o.co
roces price 2015
ng oller ent erenc m.c
s
e n
CATI Biddi Bank ww
Const
C Com ng acco w.c
ructio Nego Marc
Nang mon agen 100.0 unt ninf
n-in-p tiated 17.93 No h 10,
uang contr cy 0% transf o.co
roces price 2015
Eleva oller servic erenc m.c
s
tor e e n
CATI
C Biddi Bank ww
Const
Tech Com ng acco w.c
ructio Nego Marc
nical mon agen 100.0 unt ninf
n-in-p tiated 10 No h 10,
Econ contr cy 0% transf o.co
roces price 2015
omy oller servic erenc m.c
s
& e e n
Trade
Shan Bank ww
Procu
ghai Com Costs acco w.c
reme Nego Marc
Watc mon and 0.01 unt ninf
nt of tiated 12.82 No h 10,
h contr expe % transf o.co
mater price 2015
Indus oller nses erenc m.c
ials
try e n
20
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Reve
Bank ww
Rainb nue
Com Sales acco w.c
ow from Nego Marc
mon of 4,115 2.44 unt ninf
Supe princi tiated No h 10,
contr good .21 % transf o.co
rmark pal price 2015
oller s erenc m.c
et busin
e n
ess
Aviati
Reve
on Bank ww
nue
Indus Com Sales acco w.c
from Nego Marc
try mon of 0.01 unt ninf
princi tiated 12.98 No h 10,
Corp contr good % transf o.co
pal price 2015
oratio oller s erenc m.c
busin
n of e n
ess
China
Reve
Bank ww
nue
Shen Com Sales acco w.c
from Nego Marc
nan mon of 830.8 39.70 unt ninf
princi tiated No h 10,
Circui contr good 5 % transf o.co
pal price 2015
t oller s erenc m.c
busin
e n
ess
Reve
Bank ww
CATI nue
Com acco w.c
C from Prop Nego Marc
mon 1.62 unt ninf
Real princi erty tiated 76.67 No h 10,
contr % transf o.co
Estat pal lease price 2015
oller erenc m.c
e busin
e n
ess
Reve
Bank ww
nue
CATI Com acco w.c
from Prop Nego Marc
C mon 133.0 2.81 unt ninf
princi erty tiated No h 10,
Prop contr 3 % transf o.co
pal lease price 2015
erty oller erenc m.c
busin
e n
ess
Reve
Bank ww
nue
CATI Com acco w.c
from Prop Nego Marc
C mon 1.19 unt ninf
princi erty tiated 56.23 No h 10,
Secur contr % transf o.co
pal lease price 2015
ities oller erenc m.c
busin
e n
ess
Reve
Bank ww
CATI nue
Com acco w.c
C from Prop Nego Marc
mon 0.17 unt ninf
City princi erty tiated 8.26 No h 10,
contr % transf o.co
Prop pal lease price 2015
oller erenc m.c
erty busin
e n
ess
Reve
CATI Bank ww
nue
C Com acco w.c
from Prop Nego Marc
City mon 0.02 unt ninf
princi erty tiated 1.13 No h 10,
Devel contr % transf o.co
pal lease price 2015
opme oller erenc m.c
busin
nt e n
ess
Reve Bank ww
Guan
Com nue acco w.c
lan Prop Nego Marc
mon from 0.10 unt ninf
Real erty tiated 4.54 No h 10,
contr princi % transf o.co
Estat lease price 2015
oller pal erenc m.c
e
busin e n
21
FIYTA Holdings Ltd. 2015 Semi-Annual Report
ess
Reve
Bank ww
nue
CATI Com acco w.c
from Prop Nego Marc
C mon 1.01 unt ninf
princi erty tiated 48.04 No h 10,
Chan contr % transf o.co
pal lease price 2015
gtai oller erenc m.c
busin
e n
ess
Reve
Bank ww
nue
Com acco w.c
from Prop Nego Marc
mon 4.96 unt ninf
princi erty tiated 235 No h 10,
contr % transf o.co
pal lease price 2015
oller erenc m.c
busin
e n
ess
Reve
Bank ww
Rainb nue
Com acco w.c
ow from Prop Nego Marc
mon 0.49 unt ninf
Supe princi erty tiated 23.06 No h 10,
contr % transf o.co
rmark pal lease price 2015
oller erenc m.c
et busin
e n
ess
Reve
Bank ww
nue
Jiufa Com acco w.c
from Prop Nego Marc
ng mon 0.38 unt ninf
princi erty tiated 18.18 No h 10,
Asset contr % transf o.co
pal lease price 2015
s oller erenc m.c
busin
e n
ess
Reve
Bank ww
CATI nue
Com acco w.c
C from Prop Nego Marc
mon 0.46 unt ninf
City princi erty tiated 21.87 No h 10,
contr % transf o.co
Inves pal lease price 2015
oller erenc m.c
tment busin
e n
ess
CATI Reve
Bank ww
C nue
Com acco w.c
Them from Prop Nego Marc
mon 0.75 unt ninf
e princi erty tiated 35.33 No h 10,
contr % transf o.co
Real pal lease price 2015
oller erenc m.c
Estat busin
e n
e ess
Reve
CATI Bank ww
nue
C Com acco w.c
from Prop Nego Marc
Huac mon 0.12 unt ninf
princi erty tiated 5.6 No h 10,
heng contr % transf o.co
pal lease price 2015
Prop oller erenc m.c
busin
erty e n
ess
Ganz
Bank ww
hou
Com acco w.c
CATI Nego Marc
mon Sales Renta 1.50 unt ninf
C tiated 50.94 No h 10,
contr costs l fees % transf o.co
Real price 2015
oller erenc m.c
Estat
e n
e
Jiujia Bank ww
ng Com acco w.c
Nego Marc
CATI mon Sales Renta 0.45 unt ninf
tiated 15.31 No h 10,
C contr costs l fees % transf o.co
price 2015
Real oller erenc m.c
Estat e n
22
FIYTA Holdings Ltd. 2015 Semi-Annual Report
e
Bank ww
CATI Com acco w.c
Nego Marc
C mon Sales Renta 0.25 unt ninf
tiated 8.52 No h 10,
Chan contr costs l fees % transf o.co
price 2015
gtai oller erenc m.c
e n
6,140
Total -- -- -- 0 -- -- -- -- --
.87
Details of large amount of sales
Inapplicable
returns
Actual implementation of the routine
related transactions incurred during
the reporting period whose total Inapplicable
amount had been predicted based on
the categories (if any)
Cause of bigger difference between
the bargain price and the market Inapplicable
reference price (if any)
Note:Through review and approval at the 17th meeting of the Seventh Board of Directors and 2014 Annual General Meet
ing, the total predicted amount of the Companys regular related transactions in year 2015 would not exceed CNY 440.2
million. During the reporting period, there existed no such a case that the amount of regular related transactions exceede
d the predicted quota of regular related transaction.
2. Related transactions concerning assets acquisition/sales
Inapplicable
3. Related Transitions of Joint Investments
Inapplicable
4. Current Associated Rights of Credit and Liabilities
Inapplicable
Due from related parties:
Inapplicable
Due to related parties:
Amount
Amount
newly Interest in
returned in
Opening increased the Ending
Cause of the
Related balance in the Interest reporting balance
Relationship formatio reporting
party (in CNY reporting rate period (in CNY
n period
10,000) period (in (in CNY 10,000)
(in CNY
CNY 10,000)
10,000)
10,000)
23
FIYTA Holdings Ltd. 2015 Semi-Annual Report
AVIC
International Controlling Borrowin
Holdings shareholder 15,000 0 15,000 6.00% 130 0
gs
Limited
Influence of the related rights
of credit and liabilities upon
the Companys operation Inapplicable
results and financial position.
5. Other Material Related Transactions
Inapplicable
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)
Date of
the Date of Guarant
announce occurrence Impleme ee to
Names of Guarantee Actual amount Type of Guarantee
ment on (date of ntation related
Gurantees line of guarantee guarantee period
the agreement status party?
guarantee execution) (Y/N)
line
Inapplicable
Total amount of outward 0 Total amount of outward 0
24
FIYTA Holdings Ltd. 2015 Semi-Annual Report
guarantee approved in the report guarantee actually incurred in
period (A1) the report period (A2)
Total amount of outward Total ending balance of
guarantee already approved at 0 outward guarantee at the end 0
the end of the report period (A3) of the report period (A4)
Guarantees to the Subsidiaries
Date of
the Date of Guarant
announce occurrence Impleme ee to
Names of Guarantee Actual amount Type of Guarantee
ment on (date of ntation related
Guarantees line of guarantee guarantee period
the agreement status party?
guarantee execution) (Y/N)
line
Shenzhen Guarantee
Harmony World March 10, with joint
30,000 May 14,2015 3,000 3 years No No
Watches Center 2015 responsibilit
Co., Ltd. y
Shenzhen Guarantee
Harmony World March 10, with joint
30,000 May 20,2015 2,700 3 years No No
Watches Center 2015 responsibilit
Co., Ltd. y
Shenzhen Guarantee
Harmony World February October 29, with joint
30,000 10,000 3 years No No
Watches Center 28, 2014 2014 responsibilit
Co., Ltd. y
Shenzhen Guarantee
Harmony World February December 8, with joint
30,000 5,000 3 years No No
Watches Center 28, 2014 2014 responsibilit
Co., Ltd. y
Shenzhen Guarantee
Harmony World February January 13, with joint
30,000 6,000 3 years No No
Watches Center 28, 2014 2015 responsibilit
Co., Ltd. y
Shenzhen Guarantee
Harmony World March 10, with joint
30,000 March 27, 2015 1,350 3 years No No
Watches Center 2015 responsibilit
Co., Ltd. y
Guarantee
FIYTA (Hong February February 3, with joint
6,308.8 1,036.57 1 years No No
Kong) Limited 28, 2014 2015 responsibilit
y
Guarantee 1 years
FIYTA (Hong March 10, with joint
6,308.8 March 12, 2015 394.4 No No
Kong) Limited 2015 responsibilit
y
Guarantee 1 years
FIYTA (Hong March 10, with joint
6,308.8 April 2, 2015 473.28 No No
Kong) Limited 2015 responsibilit
y
Guarantee 1 years
FIYTA (Hong March 10, with joint
6,308.8 May 6, 2015 258.92 No No
Kong) Limited 2015 responsibilit
y
Guarantee 1 years
FIYTA (Hong March 10, with joint
6,308.8 June 2, 2015 1,046.98 No No
Kong) Limited 2015 responsibilit
y
Guarantee
FIYTA (Hong March 1, with joint
11,829 July 11, 2013 3,944 3 years No No
Kong) Limited 2013 responsibilit
y
FIYTA (Hong March 1, 11,829 August 5, 2013 3,944 Guarantee 3 years No No
25
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Kong) Limited 2013 with joint
responsibilit
y
Guarantee
FIYTA (Hong March 1, with joint
11,829 January 6, 2014 1,577.6 3 years No No
Kong) Limited 2013 responsibilit
y
Guarantee
FIYTA (Hong March 1, January 27, with joint
11,829 788.8 3 years No No
Kong) Limited 2013 2014 responsibilit
y
Guarantee
FIYTA (Hong February with joint
11,829 March 3, 2014 1,577.6 3 years No No
Kong) Limited 28, 2014 responsibilit
y
Total guarantee quota to the Total amount of guarantee to
subsidiaries approved in the the subsidiaries actually
36,308.8 16,260.15
reporting period (B1) incurred in the reporting period
(B2)
Total balance of actual
Total guarantee quota to the
guarantee to the subsidiaries at
subsidiaries approved at the end 48,137.8 43,092.15
the end of the reporting period
of the reporting period (B3)
(B4)
Guarantees among Subsidiaries
Date of
the Date of Guarant
announce occurrence Impleme ee to
Names of Guarantee Actual amount Type of Guarantee
ment on (date of ntation related
Guarantees line of guarantee guarantee period
the agreement status party?
guarantee execution) (Y/N)
line
Inapplicable
Total guarantee quota to the Total amount of guarantee to
subsidiaries approved in the the subsidiaries actually
0 0
reporting period (C1) incurred in the reporting period
(C2)
Total balance of actual
Total guarantee quota to the
guarantee to the subsidiaries at
subsidiaries approved at the end 0 0
the end of the reporting period
of the reporting period (C3)
(C4)
The Companys total guarantee (i.e. total of the first three main items)
Total guarantee quota approved Total amount of guarantee
in the reporting period 36,308.8 actually incurred in the 16,260.15
(A1+B1+C1) reporting period (A2+B2+C2)
Total guarantee quota already Total balance of the actual
approved at the end of the 48,137.8 guarantee at the end of the 43,092.15
reporting period (A3+B3+C3) reporting period (A4+B4+C4)
Proportion of the actual guarantees in the Companys net assets
25.74%
(namely A4+B4+C4)
Including:
Amount of guarantees offered for the shareholder(s), actual
0
controller and their related parties (D)
26
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Amount of guarantee offered directly or indirectly for the liabilities
0
owed by the warrantee whose asset-liability ratio exceeds 70% (E)
Amount of guarantee with the total guarantee exceeding 50% of
0
the net assets (F)
Total amount of the aforesaid three items of guarantee (D+E+F) 0
Description of the possibility of bearing joint repayment liability due
Inapplicable
to undue guarantee (if any)
Description of external guarantee against the specified procedures
Inapplicable
(if any)
(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).
Commitment Commitment
Commitments Promiser Description Implementation
time term
Commitment for Equity Separation Reform
Commitments in the acquisition report or the
written report on change of equity
Commitment made at the time of asset
reorganization
27
FIYTA Holdings Ltd. 2015 Semi-Annual Report
The Company
commits that in
case it is
predicted that
the Company
may be unable
to duly pay the
principal and
interest of the
bond or fail to
duly pay the
principal and
interest of the
bond when it is
due, the
Deadline of the
Company shall
bonds (The
at least take the
valid term of the
following
bonds is 5
measures: 1.
years attached
not profit
with the
distribution to
investors
the
option of selling
shareholders
FIYTA Holdings February 27, back, the In process of
Commitment made at IPO or re-financing shall be
Ltd. 2013 Companys impementation
conducted. 2.
option of
implementation
redemption and
of any capital
option of
expenditure
up-regulation of
projects, such
the nominal
as material
interest rate at
external
the end of the
investment,
3rd year).
acquisition and
merger, etc.
shall be
suspended. 3.
salaries and
bonus to the
directors and
senior
executives shall
be adjusted
down or
suspended. 4.
None of the key
officers may be
transferred out.
Other commitments to the minority
shareholders
Has the commitment been timely
Yes
implemented?
The specific cause of failure in
Inapplicable
implementation and the next plan (if any)
XI. Engagement/Disengagement of CPAs
Inapplicable
XII. Punishment and Rectification
Inapplicable
XIII. Disclosure of the Delisting Risk due to Breach of Law/Regulations
Inapplicable
28
FIYTA Holdings Ltd. 2015 Semi-Annual Report
XIV. Notes to Other Significant Events
The Company published the Announcement on Suspension due to Planning for Private Placement of Shares 2015-006,
which diclosed the event of the Companys preparation for private placement of A-shares. Afterwards, the 18th meeting of
the Seventh Board of Directors and 2014 Annual General Meeting held respectively on April 16, 2015 and June 17, 2015
reviewed and approved the Proposal on the Company' Planning for Private Placement of A-shares to the Designated
Investors and other relevant proposals. For the detail, refer to the Announcement of the Resolutions of the 18th meeting of
the Seventh Board of Directors and the Announcement of the Resolutions of 2014 Annual General Meeting 2015-020. So
far, the proposal of private placement of A-shares has got official reply from the State-owned Assets Supervision and
Administration Commission of the State Council, and has been further submitted to China Securities Regulatory
Commission and has been accepted by the authority. For the detail, refer to the Announcement on the Proposal on Private
Placement of Shares Having Got Official Reply from the State-owned Assets Supervision and Administration Commission
of the State Council 2015-018 and the Announcement on the Proposal on Private Placement of Shares Having Been
Accepted by China Securities Regulatory Commission 2015-021.
The 18th meeting of the Seventh Board of Directors and 2014 Annual General Meeting held respectively on April 16, 2015
and June 17, 2015 reviewed and approved the Proposal on Amendment of the Articles of Association. For the detail, refer
to the Announcement on the Resoluton of the 18th meeting of the Seventh Board of Directors 2015-008 and the
Announcement on the Resoluton of 2014 Annual General Meeting 2015-020.
29
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Section 6 Change of Shares and Particulars about Shareholders
I. Change of Shares
In Shares
Before the change Increase / Decrease (+/ -) After the change
Shares
Proportio New Bonus converte Proporti
Quantity Others Sub-total Quantity
n (%) issuing shares d from on (%)
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
0 0.00% 0 0 0 0 0 0 0.00%
corporate 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
0 0.00% 0 0 0 0 0 0 0.00%
corporate shares
Shares held by
0 0.00% 0 0 0 0 0 0 0.00%
foreign natural persons
392,718, 392,718,
II. Unrestricted shares 99.99% 0 0 0 0 0 99.99%
137 137
311,070, 311,070,
1. CNY ordinary shares 79.20% 0 0 0 0 0 79.20%
137 137
2. Foreign invested shares 81,648,0 81,648,0
20.79% 0 0 0 0 0 20.79%
listed in Mainland China 00 00
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, 392,767,
III. Total shares 100.00% 0 0 0 0 0 100.00%
870 870
Cause of the change of shares
Inapplicable
30
FIYTA Holdings Ltd. 2015 Semi-Annual Report
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 Companys 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 regulatory
authority for disclosing
Inapplicable
Explanation to the change of the companys total shares and the strucutre and the change of the companys asset and
liability structure arising therefrom
Inapplicable
II. Number of Shareholders and Shareholding
In shares
Total shareholders of ordinary Total shareholders of preferred
shares (if any) whose voting
shares at the end of the 23,948 power has been recovered in the 0
reporting period reporting period (refer to Note 8)
Shares held by the shareholder holding over 5% of the total shares or the top 10 shareholders
Quantity Pledging or freezing
at the Increase/d Number Number of
Shareholdi
end of ecrease in of the the
Shareholders ng
Nature the the restricte non-restric Status of the
Name proportion Quantity
reporting reporting d shares ted shares shares
(%)
period period held held
AVIC
International Dtate corporate 162,977, 162,977,3
41.49% 0 0
Holdings shareholder 327 27
Limited
Domestic
GF Securities non-state 7,794,07
1.98% 4,170,000 0 7,794,070
Co., Ltd. corporate 0
shareholder
31
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Penghua
Assets-SPDB-
Penghua
Domestic
Assets Gaolan
non-state 4,820,00
Investment 1.23% 169,700 0 4,820,006
corporate 6
Jinrun No. 17
shareholder
Assets
Management
Plan
Penghua
Assets－
Domestic
Industrial Bank
non-state 4,237,24
－ Jinrun No. corporate
1.08%
0
0 0 4,237,240
16 Assets shareholder
Management
Plan
Penghua
Assets-SPDB-
Domestic
Penghua
non-state 3,920,00
Assets Fuhui 1.00% 3,920,000 0 3,920,000
corporate 0
No. 3 Assets
shareholder
Management
Plan
Yunnan
International
Trust Co., Ltd. - Domestic
－Snub-nosed non-state 3,484,78
0.89% 0 0 3,484,780
Monkey corporate 0
Securities shareholder
Investment.Rui
yuan
Penghua
Assets-SPDB-
Penghua
Assets Jinrun Domestic
No. 20 Assets non-state 3,318,14
0.84% 3,318,141 0 3,318,141
Management corporate 1
Plan shareholder
ICBC –
Nanfang Big Domestic
Data 100 Index non-state 3,296,88
0.84% 3,296,886 0 3,296,886
Securities corporate 6
Investment shareholder
Fund
Sichuan Trust
Co., Ltd. –
Sichuan Trust
Domestic
– Zeqian No. 2
non-state 2,247,59
Securities 0.57% 2,247,599 0 2,247,599
corporate 9
Investment
shareholder
Assembly
Fund Trust
Plan
Penghua
Assets-SPDB-
Penghua
Assets Fuhui
No.1 Assets
Management
Plan Domestic
non-state 2,169,10
Penghua 0.55% 2,169,100 0 2,169,100
corporate 0
Assets-SPDB-
shareholder
Penghua
Assets Fuhui
No.1 Assets
Management
Plan
About the fact that a strategic
investor or ordinary corporate Inapplicable
became one of the top ten
shareholders due to placement of
32
FIYTA Holdings Ltd. 2015 Semi-Annual Report
new shares (if any) (Refer to Note 3)
Of the top ten shareholders, Penghua Assets-SPDB-Penghua Assets Gaolan Investment Jinrun No.
Explanation on associated 17 Assets Management Plan , Penghua Assets － Industrial Bank － Jinrun No. 16 Assets
Management Plan, Penghua Assets-SPDB-Penghua Assets Fuhui No. 3 Assets Management Plan,
relationship or consistent action of Penghua Assets-SPDB-Penghua Assets Jinrun No. 20 Assets Management Plan and Penghua
Assets-SPDB-Penghua Assets Fuhui No.1 Assets Management Plan belong to concerted actors as
the above shareholders specified in the Measures for Administration of Information on the Shareholder Equity Change of
Listed Companies.
Shareholding of top 10 shareholders of unrestricted share
Quantity of unrestricted shares held at the end of the Share type
Shareholders Name reporting period
Share type Quantity
AVIC International Holdings Limited 162,977,327 A-shares 162,977,327
GF Securities Co., Ltd. 7,794,070 A-shares 7,794,070
Penghua Assets-SPDB-Penghua
Assets Gaolan Investment Jinrun No. 4,820,006 A-shares 4,820,006
17 Assets Management Plan
Penghua Assets－ Industrial Bank
－ Jinrun No. 16 Assets 4,237,240 A-shares 4,237,240
Management Plan
Penghua Assets-SPDB-Penghua
Assets Fuhui No. 3 Assets 3,920,000 A-shares 3,920,000
Management Plan
Yunnan International Trust Co., Ltd. -
－Snub-nosed Monkey Securities 3,484,780 A-shares 3,484,780
Investment.Ruiyuan
Penghua Assets-SPDB-Penghua
Assets Jinrun No. 20 Assets 3,318,141 A-shares 3,318,141
Management Plan
ICBC -Nanfang Big Data 100 Index
3,296,886 A-shares 3,296,886
Securities Investment Fund
Sichuan Trust Co., Ltd. – Sichuan
Trust – Zeqian No. 2 Securities
2,247,599 A-shares 2,247,599
Investment Assembly Fund Trust
Plan
Penghua Assets-SPDB-Penghua
Assets Fuhui No.1 Assets 2,169,100 A-shares 2,169,100
Management Plan
Explanation to the associated Of the top ten shareholders, Penghua Assets-SPDB-Penghua Assets Gaolan Investment Jinrun No.
relationship or consistent action 17 Assets Management Plan, Penghua Assets－ Industrial Bank － Jinrun No. 16 Assets
among the top 10 shareholders of Management Plan, Penghua Assets-SPDB-Penghua Assets Fuhui No. 3 Assets Management Plan,
non-restricted negotiable shares and Penghua Assets-SPDB-Penghua Assets Jinrun No. 20 Assets Management Plan and Penghua
that between the top 10 shareholders Assets-SPDB-Penghua Assets Fuhui No.1 Assets Management Plan belong to concerted actors as
of non-restricted negotiable shares specified in the Measures for Administration of Information on the Shareholder Equity Change of
and top 10 shareholders. Listed Companies.
Note to the top 10 shareholders
involved in margin financing &
Inapplicable
securities lending (if any) (Refer to
Note 4)
Did the top ten ordinary shareholders or top ten shareholders of unrestricted ordinary shares conduct contractual
repurchase during the reporting period?
No
III. Change of the Controlling Shareholder or the Actual Controller
Inapplicable
33
FIYTA Holdings Ltd. 2015 Semi-Annual Report
IV. Share Acquisition Plan Proposed or Implemented by the Company’s Shareholder
and its Concerted Actor in the Reporting Period
Inapplicable
Section 7 About Preferred Shares
Inapplicable
Section 8 Directors, Supervisors and Senior Executives
I. Change in Shares Held by Directors, Supervisors and Senior Executives
Number Number of Number of
Number Number Number
of shares restricted restricted
of shares of shares of shares Number of
held at shares shares
acquired lessened held at restricted shares
the granted at granted
Office during during the end of granted at the
Names Positions beginning the during the
Status the the the end of the
of the beginning of reporting
reporting reporting reporting reporting period
reporting the reporting period
period period period (share)
period period (share)
(share) (share) (share)
(share) (share)
Diao
Weichen Chairman In office
g
Xu
Managin
Dongshe In office
g Director
ng
Wang
Mingchua Director In office
n
Liu Aiyi Director In office
Zhong
Director In office
Sijun
Cao Zhen Director In office
Zhang Independ
Honggua ent In office
ng Director
Independ
Zhang
ent In office
Shunwen
Director
34
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Independ
Wang
ent In office
Yan
Director
Chairman
of the
Supervis
Sui Yong In office
ory
Committe
e
Chen Supervis
In office
Zhuo or
Tang Supervis
In office
Boxue or
Chen Deputy
In office
Libin GM
Lu
Deputy
Bingqian In office 66,311 0 0 66,311 0 0 0
GM
g
Deputy
Du Xi In office
GM
Deputy
GM &
Lu
Secretary In office
Wanjun
of the
Board
Chief
Hu
Accounta In office
Xinglong
nt
Huang
Director Retired
Yongfeng
Total -- -- 66,311 0 0 66,311 0 0 0
II. Personnel Change of Directors, Supervisors and Senior Executives
Names Office Held Type Date Cause
Applied for resigning the title of the Companys director and
Huang member of the Stragety Committee and Normination,
Director Retired June 5, 2015
Yongfeng Remueration and Assessment Committee for the cause of
job.
Elected the Companys director at the 19th meeting of the
Cao Zhen Director Elected June 17, 2015 Seventh Board of Directors and 2014 Annual General
Meeting.
35
FIYTA Holdings Ltd. 2015 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.
June 30, 2015
In CNY
Items Ending balance Opening balance
Current assets:
Monetary fund 160,454,732.91 116,455,070.54
Settlement reserve
Lendings
Financial assets that are
measured at fair value and
changes in the value are charged
to current gain and loss.
Derivative financial assets
Notes receivable 6,903,361.70 6,162,768.29
Accounts receivable 447,304,649.72 351,276,905.53
Prepayment 34,128,592.47 43,054,642.06
Receivable premium
Reinsurance accounts
receivable
Reserve for reinsurance
contract receivable
Interest receivable
36
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Dividends receivable
Other receivables 47,887,982.20 41,525,719.27
Redemptory monetary
capital for sale
Inventories 2,096,191,729.11 2,133,791,024.32
Held-for-sale assets as
classified
Non-current assets due
within a year
Other current assets 8,711,221.22 14,421,516.43
Total current assets 2,801,582,269.33 2,706,687,646.44
Non-current assets:
Provision of loans and
advance in cash
Available-for-sale financial
85,000.00 85,000.00
assets
Held-to-due investments
Long term accounts
receivable
Long-term equity investment 42,639,775.66 42,389,759.91
Investment based real estate 221,520,065.95 226,091,938.89
Fixed assets 367,870,343.49 323,732,870.58
Construction in progress 100,394,916.02 51,389,263.53
Engineering supplies
Disposal of fixed assets
Productive biological asset
Oil and gas assets
Intangible assets 35,279,093.66 35,502,525.72
Development expenses
Goodwill
Long-term expenses to be
152,340,679.61 149,733,566.03
apportioned
Deferred income tax asset 99,137,963.23 90,669,076.10
Other non-current assets 31,500,000.00
Total non-current assets 1,019,267,837.62 951,094,000.76
Total Assets 3,820,850,106.95 3,657,781,647.20
37
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Current liabilities:
Short-term Loan 1,142,601,517.52 989,445,000.00
Due to the Central Bank
Deposits taking and
interbank placement
Borrowing capital
Financial liabilities measured
based on the fair value and whose
change was charged to the current
gain and loss.
Derivative financial liabilities
Notes payable
Accounts payable 189,597,291.95 147,119,118.81
Advance receipts 27,210,870.61 12,087,368.17
Financial assets sold for
repurchase
Service charge and
commission payable
Accrued payroll 19,246,368.41 38,648,432.41
Payable taxes 87,295,262.96 77,602,770.06
Interest payable 9,710,351.71 19,420,893.75
Dividends payable 39,276,787.00
Other payables 41,822,347.20 188,574,900.45
Payable reinsurance
Reserve for insurance
contract
Acting trading securities
Income from securities
underwriting on commission
Held-for-purchase liabilities
as classified
Non-current liabilities due
within a year
Other current liabilities 6,790,760.39 5,482,521.27
Total current liabilities 1,563,551,557.75 1,478,381,004.92
Non-current liabilities:
38
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Long-term Loan 176,025,708.38 139,952,425.65
Bonds payable 399,295,040.88 398,767,929.40
Including: preferred
shares
Perpetual bond
Long-term accounts payable
Long term accrued payroll
Special accounts payable
Predicted liabilities
Deferred income 4,200,000.00 4,200,000.00
Deferred income tax liability 130,940.80
Other non-current liabilities
Total non-current liabilities 579,651,690.06 542,920,355.05
Total Liabilities 2,143,203,247.81 2,021,301,359.97
Owners equity:
Capital Stock 392,767,870.00 392,767,870.00
Other equity instruments
Including: preferred
shares
Perpetual bond
Capital Reserve 525,508,281.60 525,508,281.60
Less: shares in stock
Other comprehensive
-10,446,088.96 -17,609,265.22
income
Special reserve
Surplus Reserve 165,915,466.89 165,915,466.89
Reserve against general
risks
Retained earnings 600,652,210.10 566,819,577.37
Total owners equity attributable to
1,674,397,739.63 1,633,401,930.64
the parent company
Minority shareholders equity 3,249,119.51 3,078,356.59
Total owners equity 1,677,646,859.14 1,636,480,287.23
Total liabilities and owners equity 3,820,850,106.95 3,657,781,647.20
Legal representative: Xu Dongsheng Chief Financial Officer: Hu Xinglong Person in charge of the Accounting
39
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Department: Hu Xinglong
2. Balance Sheet (Parent Company)
in CNY
Items Ending balance Opening balance
Current assets:
Monetary fund 59,511,612.46 37,060,566.79
Financial assets that are
measured at fair value and
changes in the value are charged
to current gain and loss.
Derivative financial assets
Notes receivable
Accounts receivable 71,324.10 11,735,787.90
Prepayment
Interest receivable
Dividends receivable
Other receivables 1,591,354,743.54 1,524,513,111.66
Inventories
Held-for-sale assets as
classified
Non-current assets due
within a year
Other current assets 503,071.74
Total current assets 1,650,937,680.10 1,573,812,538.09
Non-current assets:
Available-for-sale financial
85,000.00 85,000.00
assets
Held-to-due investments
Long term accounts
receivable
Long-term equity investment 813,539,495.66 773,189,479.91
Investment based real estate 221,520,065.95 226,091,938.89
Fixed assets 115,402,596.59 117,256,223.80
Construction in progress 100,394,916.02 51,389,263.53
Engineering supplies
40
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Disposal of fixed assets
Productive biological asset
Oil and gas assets
Intangible assets 28,948,212.00 29,165,984.08
Development expenses
Goodwill
Long-term expenses to be
4,313,716.55 4,813,767.34
apportioned
Deferred income tax asset 1,198,606.77 1,198,606.77
Other non-current assets
Total non-current assets 1,285,402,609.54 1,203,190,264.32
Total Assets 2,936,340,289.64 2,777,002,802.41
Current liabilities:
Short-term Loan 830,000,000.00 683,000,000.00
Financial liabilities measured
based on the fair value and whose
change was charged to the current
gain and loss.
Derivative financial liabilities
Notes payable
Accounts payable 211,339.76 211,339.76
Advance receipts 1,067,744.30 3,484,435.98
Accrued payroll 4,083,592.86 10,307,200.18
Payable taxes 4,604,629.68 3,505,501.05
Interest payable 9,358,131.16 18,139,997.63
Dividends payable 39,276,787.00
Other payables 15,491,517.93 165,507,426.74
Held-for-purchase liabilities
as classified
Non-current liabilities due
within a year
Other current liabilities
Total current liabilities 904,093,742.69 884,155,901.34
Non-current liabilities:
Long-term Loan 51,361,928.00 15,361,928.00
Bonds payable 399,295,040.88 398,767,929.40
41
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Including: preferred
shares
Perpetual bond
Long-term accounts payable
Long term accrued payroll
Special accounts payable
Predicted liabilities
Deferred income 4,200,000.00 4,200,000.00
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities 454,856,968.88 418,329,857.40
Total Liabilities 1,358,950,711.57 1,302,485,758.74
Owners equity:
Capital Stock 392,767,870.00 392,767,870.00
Other equity instruments
Including: preferred
shares
Perpetual bond
Capital Reserve 531,163,822.70 531,163,822.70
Less: shares in stock
Other comprehensive
income
Special reserve
Surplus Reserve 165,915,466.89 165,915,466.89
Retained earnings 487,542,418.48 384,669,884.08
Total owners equity 1,577,389,578.07 1,474,517,043.67
Total liabilities and owners equity 2,936,340,289.64 2,777,002,802.41
Legal representative: Xu Dongsheng Chief Financial Officer: Hu Xinglong Person in charge of the Accounting
Department: Hu Xinglong
3. Consolidated Statement of Profit
in CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
I. Turnover 1,683,793,247.59 1,642,614,790.97
42
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Including: operating income 1,683,793,247.59 1,642,614,790.97
Interest income
Earned insurance
premium
Service charge and
commission income
II. Total operating costs 1,590,005,469.65 1,539,792,741.34
Including: Operating costs 1,037,981,721.35 1,038,060,709.77
Interest payment
Service charge and
commission expenses
Surrender Value
Compensation
expenses, net
Provision of reserve for
insurance contract, net
Payment of policy
dividend
Reinsurance expenses
Business Taxes and
15,078,616.55 10,314,717.04
Surcharges
Sales costs 386,297,227.92 349,761,320.39
Administrative
100,131,176.65 84,852,192.39
expenses
Financial expenses 50,889,786.79 54,196,678.49
Loss from impairment
-373,059.61 2,607,123.26
of assets
Plus: Income from change in
fair value (loss stated with “-“)
Investment return (loss
250,015.75 -504,563.21
stated with “-“)
Including: return on
investment in associate and joint 250,015.75 -504,563.21
venture
Exchange income (loss
stated with “-“)
III. Profit from businesses (loss
94,037,793.69 102,317,486.42
stated with “-”)
43
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Plus: Non-operating income 1,849,835.27 3,189,982.57
Including: Gains from
69,750.00 37,755.19
disposal of non-current assets
Less: Non-operating
345,400.59 550,640.88
expenses
Including: Loss from
35,549.22 31,046.62
disposal of non-current assets
IV. Total Profit (total loss stated with
95,542,228.37 104,956,828.11
“-“)
Less: Income tax expense 22,261,660.23 16,573,527.31
V. Net Profit (loss stated with “-“) 73,280,568.14 88,383,300.80
Net profit attributable to the
73,109,419.73 88,283,873.10
parent companys owner
Minority shareholders gain
171,148.41 99,427.70
and loss
VI. Net of other comprehensive
7,162,790.77 2,263,797.96
income after tax
Net of other comprehensive
income after tax attributable to the 7,163,176.26 2,256,191.67
parent companys owner
(I) Other comprehensive
income which cannot be
re-classified into the gain and loss
1. Movement of the net
liabilities and net assets
re-measured for setting the
beneficial plan
2. Share enjoyable in
the other comprehensive income in
which the investee cannot be
re-classified into the gain and loss
under the equity method
(II) Other comprehensive
income which cannot be
7,163,176.26 2,256,191.67
re-classified into the gain and loss
in future
1. Share enjoyable in
the other comprehensive income in
which the investee cannot be
re-classified into the gain and loss
44
FIYTA Holdings Ltd. 2015 Semi-Annual Report
under the equity method in future
2. Gain/loss from
change in the fair value of the
financial assets available for sale
3. Gain/loss from which
the held-to-maturity investment is
re-classified as available-for-sale
financial ssets
4. Valid part of the
gain/loss from cash flow hedge
5. Conversion margin
of the financial statements in foreign 7,163,176.26 2,256,191.67
currency
6. Others
Net amount of other
comprehensive income after tax -385.49 7,606.29
attributable to minority shareholders
VII. Total comprehensive income 80,443,358.91 90,647,098.76
Total comprehensive income
attributable to the parent companys 80,272,595.99 90,540,064.77
owner
Total comprehensive income
170,762.92 107,033.99
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.186 0.225
(II) Diluted earnings per share 0.186 0.225
For the enterprises under the same control consolidated in the report period, the net profit realized by the consolidee
before the consolidation is CNY 0. Net profit realized by the consolidatee in the previous period is CNY 0.
Legal representative: Xu Dongsheng Chief Financial Officer: Hu Xinglong Person in charge of the Accounting
Department: Hu Xinglong
4. Income Statement, Parent Company
in CNY
Amount incurred in the reporting
Items Amount incurred in the previous period
period
I. Operating income 47,530,000.90 42,966,203.07
Less: Operating cost 6,946,511.39 6,497,016.07
45
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Business Taxes and
2,528,230.20 2,436,791.95
Surcharges
Sales costs
Administrative
25,040,053.99 22,657,408.82
expenses
Financial expenses 189,713.16 1,435,963.14
Loss from impairment of
-434,290.83 -4,394.68
assets
Plus: Income from change in
fair value (loss stated with “-“)
Investment return (loss
131,638,156.33 98,096,881.70
stated with “-“)
Including: return on
investment in associate and joint 250,015.75 -504,563.21
venture
II. Operation profit (loss stated
144,897,939.32 108,040,299.47
with “-“)
Plus: Non-operating income 174,000.00 861,031.28
Including: Gains from
25,457.85
disposal of non-current assets
Less: Non-operating
14,678.42 150,000.00
expenses
Including: Loss from
14,678.42
disposal of non-current assets
III. Total Profit (total loss stated
145,057,260.90 108,751,330.75
with “-“)
Less: Income tax expense 2,907,939.50 2,551,860.29
IV. Net profit ( net loss is stated
142,149,321.40 106,199,470.46
with “-“)
V. Net of other comprehensive
income after tax
(I) Other comprehensive
income which cannot be
re-classified into the gain and loss
1. Movement of the
net liabilities and net assets
re-measured for setting the
beneficial plan
46
FIYTA Holdings Ltd. 2015 Semi-Annual Report
2. Share enjoyable in
the other comprehensive income
in which the investee cannot be
re-classified into the gain and loss
under the equity method
(II) Other comprehensive
income which cannot be
re-classified into the gain and loss
in future
1. Share enjoyable in
the other comprehensive income
in which the investee cannot be
re-classified into the gain and loss
under the equity method in future
2. Gain/loss from
change in the fair value of the
financial assets available for sale
3. Gain/loss from
which the held-to-maturity
investment is re-classified as
available-for-sale financial ssets
4. Valid part of the
gain/loss from cash flow hedge
5. Conversion margin
of the financial statements in
foreign currency
6. Others
VI. Total comprehensive income 142,149,321.40 106,199,470.46
VII. Earnings per share:
(I) Basic earnings per share 0.362 0.270
(II) Diluted earnings per
0.362 0.270
share
Legal representative: Xu Dongsheng Chief Financial Officer: Hu Xinglong Person in charge of the Accounting
Department: Hu Xinglong
5. Consolidated Cash Flow Statement
in CNY
Items Amount incurred in the reporting Amount incurred in the previous period
47
FIYTA Holdings Ltd. 2015 Semi-Annual Report
period
I. Cash flows arising from
operating activities
Cash received from sales of
1,830,270,229.94 1,780,633,526.09
goods and supply of labor service
Net increase of the
customers deposits and interbank
placement
Net increase of borrowings
from the central bank
Net increase of borrowings
from other financial institutions
Cash received from the
premium of the original insurance
contract
Net cash received from the
reinsurance business
Net increase of the reserve
from policy holders and
investment
Net increase of the financial
assets that are measured at fair
value and whose movement is
counted to the current gain and
loss.
Charge of cash interest,
service charge and commission
Net increase of loan from
other banks
Net increase of fund from
repurchase business
Rebated taxes received
Cash received from other
14,720,508.19 15,296,054.99
operating activities
Sub-total of cash flow received
1,844,990,738.13 1,795,929,581.08
from operation activities
Cash paid for purchase of
goods and reception of labor 1,068,142,690.95 1,177,579,276.03
services
48
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Net increase of loans and
advances to the customers
Net increase of amounts due
from the central bank and other
banks
Cash from payment for
settlement of the original
insurance contract
Cash for payment of interest,
service charge and commission
Cash for payment of policy
dividend
Cash paid to and for
255,570,670.71 223,473,612.75
employees
Taxes paid 145,291,060.41 96,337,099.02
Cash paid for other
203,732,537.50 160,540,913.89
operating activities
Subtotal of cash flow paid for
1,672,736,959.57 1,657,930,901.69
operating activities
Net cash flow arising from
172,253,778.56 137,998,679.39
operating activities
II. Cash flows arising from
investing activities:
Cash received from
investment recovery
Cash received from return
on investment
Net cash received from
disposal of fixed assets, intangible 180,880.00 1,581.04
assets and other long-term assets
Net cash received from
disposal of subsidiaries and other
operating units
Other investment related
cash receipts
Sub-total of cash flow-in received
180,880.00 1,581.04
from investing activities
Cash paid for purchase and
111,100,428.69 77,189,659.42
construction of fixed assets,
49
FIYTA Holdings Ltd. 2015 Semi-Annual Report
intangible assets and other long
term assets
Cash paid for investment
Net increase of the pledged
loan
Net cash paid for acquisition
of subsidiaries and other operation
units
Cash paid for other
investment related activities
Sub-total of cash flow paid for
111,100,428.69 77,189,659.42
investment activities
Net cash flow arising from
-110,919,548.69 -77,188,078.38
investment activities
III. Cash flows arising from
financing activities:
Cash received from
absorbing investment
Incl.: Cash received from the
subsidiaries absorption of minority
shareholders investment
Cash received from loans 945,805,587.19 841,502,500.00
Cash received from bond
issuing
Cash received from other
13,500,000.00
financing activities
Sub-total cash flow received from
959,305,587.19 841,502,500.00
financing activities
Cash paid for debt
820,307,480.05 790,751,192.02
repayment
Cash paid for dividend/profit
distribution or repayment of 55,561,222.27 57,371,716.58
interest
Including: Dividend and
profit paid by the subsidiaries to
minority shareholders
Cash paid for other financing
100,451,008.00 2,295,383.00
activities
Sub-total cash flow paid for 976,319,710.32 850,418,291.60
50
FIYTA Holdings Ltd. 2015 Semi-Annual Report
financing activities
Net cash flow arising from
-17,014,123.13 -8,915,791.60
financing activities
IV. Change of exchange rate
influencing the cash and cash -320,444.37 285,836.84
equivalent
V. Net increase of cash and cash
43,999,662.37 52,180,646.25
equivalents
Plus: Opening balance of
114,880,070.54 107,663,110.74
cash and cash equivalents
VI. Ending balance of cash and
158,879,732.91 159,843,756.99
cash equivalents
Legal representative: Xu Dongsheng Chief Financial Officer: Hu Xinglong Person in charge of the Accounting
Department: Hu Xinglong
6. Parent Company’s Cash Flow Statement
in CNY
Amount incurred in the reporting
Items Amount incurred in the previous period
period
I. Cash flows arising from
operating activities
Cash received from sales of
55,944,541.75 62,443,531.63
goods and supply of labor service
Rebated taxes received
Cash received from other
2,697,740.04 107,338,821.67
operating activities
Sub-total of cash flow received
58,642,281.79 169,782,353.30
from operation activities
Cash paid for purchase of
goods and reception of labor
services
Cash paid to and for
28,749,906.40 24,629,959.54
employees
Taxes paid 5,193,858.41 4,370,657.08
Cash paid for other
31,570,558.35 6,191,101.05
operating activities
Subtotal of cash flow paid for 65,514,323.16 35,191,717.67
51
FIYTA Holdings Ltd. 2015 Semi-Annual Report
operating activities
Net cash flow arising from
-6,872,041.37 134,590,635.63
operating activities
II. Cash flows arising from
investing activities:
Cash received from
1,400,000.00
investment recovery
Cash received from return
131,388,140.58
on investment
Net cash received from
disposal of fixed assets, intangible 100,800.00
assets and other long-term assets
Net cash received from
disposal of subsidiaries and other
operating units
Other investment related
cash receipts
Sub-total of cash flow-in received
131,488,940.58 1,400,000.00
from investing activities
Cash paid for purchase and
construction of fixed assets,
49,328,711.80 15,746,936.23
intangible assets and other long
term assets
Cash paid for investment 40,100,000.00
Net cash paid for acquisition
of subsidiaries and other operation
units
Cash paid for other
investment related activities
Sub-total of cash flow paid for
89,428,711.80 15,746,936.23
investment activities
Net cash flow arising from
42,060,228.78 -14,346,936.23
investment activities
III. Cash flows arising from
financing activities:
Cash received from
absorbing investment
Cash received from loans 796,000,000.00 485,000,000.00
Cash received from bond
52
FIYTA Holdings Ltd. 2015 Semi-Annual Report
issuing
Cash received from other
financing activities
Sub-total cash flow received from
796,000,000.00 485,000,000.00
financing activities
Cash paid for debt
663,000,000.00 540,500,000.00
repayment
Cash paid for dividend/profit
distribution or repayment of 45,286,133.74 46,682,224.13
interest
Cash paid for other financing
100,451,008.00 895,383.00
activities
Sub-total cash flow paid for
808,737,141.74 588,077,607.13
financing activities
Net cash flow arising from
-12,737,141.74 -103,077,607.13
financing activities
IV. Change of exchange rate
influencing the cash and cash
equivalent
V. Net increase of cash and cash
22,451,045.67 17,166,092.27
equivalents
Plus: Opening balance of
35,485,566.79 27,929,968.24
cash and cash equivalents
VI. Ending balance of cash and
57,936,612.46 45,096,060.51
cash equivalents
Legal representative: Xu Dongsheng Chief Financial Officer: Hu Xinglong Person in charge of the Accounting
Department: Hu Xinglong
7. Consolidated Statement of Change in Owner’s Equity
Amount in the reporting period
in CNY
Reporting Period
Owners equity attributable to the parent company Mino Total
Items
Cap Other equity Capit Less: Othe Speci Surpl Rese Retai rity owne
ital instruments al shar r al us rve ned shar rs
53
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Sto Pre Rese es in comp reser Rese again earni ehold equit
Per
ck fere rve stock rehe ve rve st ngs ers y
pet
nce Oth nsive gene equit
ual
sha ers inco ral y
bon
res me risks
d
392
525, -17,6 165, 566, 1,63
I. Balance at ,76 3,07
508, 09,2 915, 819, 6,48
the end of the 7,8 8,35
281. 65.2 466. 577. 0,28
previous year 70. 6.59
60 2 89 37 7.23
00
Plus:
Change of the
accounting
policy
Correction of
the errors of
the previous
period
Consolidation
of Enterprises
under Joint
Control
Others
392
525, -17,6 165, 566, 1,63
,76 3,07
II. Opening 508, 09,2 915, 819, 6,48
7,8 8,35
balance 281. 65.2 466. 577. 0,28
70. 6.59
60 2 89 37 7.23
00
III. Amount of
increase/decre 33,8 41,1
7,16 170,
ase in the 32,6 66,5
3,17 762.
report period 32.7 71.9
6.26 92
(Decrease is 3 1
stated with “-”)
(I) Total 7,16 73,1 170, 80,4
comprehensive 3,17 09,4 762. 43,3
income 6.26 19.7 92 58.9
54
FIYTA Holdings Ltd. 2015 Semi-Annual Report
3 1
(II) Owners
investment and
decrease of
capital
1. Common
shares
invested by the
shareholders
2. Capital
contributed by
other equity
instruments
holders
3. Amount of
share payment
charged to the
owners equity
4. Others
-39,2 -39,2
(III) Profit 76,7 76,7
Distribution 87.0 87.0
0 0
1. Provision of
surplus public
reserve
2. Provision for
general risks
3. Distribution -39,2 -39,2
to the owner 76,7 76,7
(or 87.0 87.0
shareholders) 0 0
4. Others
(IV) Internal
carry-over of
owners equity
1. Increased
capital
converted from
capital reserve
55
FIYTA Holdings Ltd. 2015 Semi-Annual Report
(or capital
stock)
2. Increased
capital
converted from
surplus
reserve (or
capital stock)
3. Making up
Deficit with
Surplus Public
Reserve
4. Others
(V) Special
reserve
1. Provision in
the report
period
2. Application
in the report
period
(VI) Others
392
525, -10,4 165, 600, 1,67
IV. Ending ,76 3,24
508, 46,0 915, 652, 7,64
balance of the 7,8 9,119
281. 88.9 466. 210. 6,85
report period 70. .51
60 6 89 10 9.14
00
Amount of Previous Year
in CNY
Previous period
Owners equity attributable to the parent company
Other equity
Mino
instruments Othe Rese
rity Total
Pre r rve
Cap Capit Less: Speci Surpl Retai shar owne
Items comp again
frer Per ehol rs
ital al shar al us ned
enc pet rehe st
Sto Rese es in reser Rese earni ders equit
Oth
e ual nsive gene
ck rve stock ve rve ngs equit y
ers
sha bon inco ral
y
res d me risks
56
FIYTA Holdings Ltd. 2015 Semi-Annual Report
392
525, 156, 1,53
I. Balance at ,76 -8,26 469,7 2,38
506, 714, 8,81
the end of the 7,8 0,83 06,60 4,90
952. 094. 9,59
previous year 70. 3.09 0.67 7.19
78 20 1.75
00
Plus:
Change of the
accounting
policy
Correction of
the errors of
the previous
period
Consolidation
of Enterprises
under Joint
Control
Others
392
525, 156, 1,53
,76 -8,26 469,7 2,38
II. Opening 506, 714, 8,81
7,8 0,83 06,60 4,90
balance 952. 094. 9,59
70. 3.09 0.67 7.19
78 20 1.75
00
III. Amount of
increase/decre 97,6
-9,34 9,20 97,11 693,
ase in the 1,32 60,6
8,43 1,37 2,976 449.
report period 8.82 95.4
2.13 2.69 .70 40
(Decrease is 8
stated with “-”)
136,
(I) Total -9,34 145,5 505,
748,
comprehensive 8,43 91,13 649.
353.
income 2.13 6.39 40
66
(II) Owners
187, 187,
investment and
800. 800.
decrease of
00 00
capital
1. Common 187, 187,
57
FIYTA Holdings Ltd. 2015 Semi-Annual Report
shares 800. 800.
contributed 00 00
byu the
shareholders
2. Capital
contributed by
other equity
instruments
holders
3. Amount of
share payment
charged to the
owners equity
4. Others
-39,2
9,20 -48,4
(III) Profit 1,32 75,4
1,37 78,15
Distribution 8.82 58.1
2.69 9.69
8
1. Provision of 9,20 -9,20
surplus public 1,37 1,372
reserve 2.69 .69
2. Provision for
general risks
3. Distribution -39,2
-39,2
to the owner 76,7
76,78
(or 87.0
7.00
shareholders) 0
1,32 1,32
4. Others
8.82 8.82
(IV) Internal
carry-over of
owners equity
1. Increased
capital
converted from
capital reserve
(or capital
stock)
2. Increased
capital
converted from
58
FIYTA Holdings Ltd. 2015 Semi-Annual Report
surplus
reserve (or
capital stock)
3. Making up
Deficit with
Surplus Public
Reserve
4. Others
(V) Special
reserve
1. Provision in
the report
period
2. Application
in the report
period
(VI) Others
392
525, -17,6 165, 1,63
IV. Ending ,76 566,8 3,07
508, 09,2 915, 6,48
balance of the 7,8 19,57 8,35
281. 65.2 466. 0,28
report period 70. 7.37 6.59
60 2 89 7.23
00
Legal representative: Xu Dongsheng Chief Financial Officer: Hu Xinglong Person in charge of the Accounting
Department: Hu Xinglong
8. Statement of Change in Owner’s Equity, Parent Company
Amount in the reporting period
in CNY
Reporting Period
Other equity
instruments Other
Less: Surplu Retai Total
Capit Prefe Capital compr Special
Items shares s ned owner
al renc Perp Reserv ehensi reserv
Othe in Reserv earni s
Stock e etual e ve e
rs stock e ngs equity
shar bond income
es
I. Balance at 392,7 531,16 165,91 384,6 1,474,
the end of the 67,87 3,822. 5,466. 69,88 517,04
previous year 0.00 70 89 4.08 3.67
59
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Plus:
Change of the
accounting
policy
Correction of
the errors of
the previous
period
Others
392,7 531,16 165,91 384,6 1,474,
II. Opening
67,87 3,822. 5,466. 69,88 517,04
balance
0.00 70 89 4.08 3.67
III. Amount of
increase/decre
102,8 102,87
ase in the
72,53 2,534.
report period
4.40 40
(Decrease is
stated with “-”)
(I) Total 142,1 142,14
comprehensive 49,32 9,321.
income 1.40 40
(II) Owners
investment and
decrease of
capital
1. Common
shares
contributed by
shareholders
2. Capital
contributed by
other equity
instruments
holders
3. Amount of
share payment
charged to the
owners equity
4. Others
60
FIYTA Holdings Ltd. 2015 Semi-Annual Report
-39,2 -39,27
(III) Profit
76,78 6,787.
Distribution
7.00 00
1. Provision of
surplus public
reserve
2. Distribution
-39,2 -39,27
to the owner
76,78 6,787.
(or
7.00 00
shareholders)
3. Others
(IV) Internal
carry-over of
owners equity
1. Increased
capital
converted from
capital reserve
(or capital
stock)
2. Increased
capital
converted from
surplus
reserve (or
capital stock)
3. Making up
Deficit with
Surplus Public
Reserve
4. Others
(V) Special
reserve
1. Provision in
the report
period
2. Application
in the report
period
(VI) Others
61
FIYTA Holdings Ltd. 2015 Semi-Annual Report
IV. Ending 392,7 531,16 165,91 487,5 1,577,
balance of the 67,87 3,822. 5,466. 42,41 389,57
report period 0.00 70 89 8.48 8.07
Amount of Previous Year
in CNY
Previous period
Other equity
instruments Other
Less: Surplu Retai Total
Capit Prefe Capital compr Special
Items shares s ned owner
al renc Perp Reserv ehensi reserv
Othe in Reserv earni s
Stock e etual e ve e
rs stock e ngs equity
shar bond income
es
I. Balance at 392,7 531,16 156,71 341,1 1,421,
the end of the 67,87 2,493. 4,094. 34,31 778,77
previous year 0.00 88 20 6.88 4.96
Plus:
Change of the
accounting
policy
Correction of
the errors of
the previous
period
Others
392,7 531,16 156,71 341,1 1,421,
II. Opening
67,87 2,493. 4,094. 34,31 778,77
balance
0.00 88 20 6.88 4.96
III. Amount of
increase/decre
43,53 52,738
ase in the 1,328. 9,201,
5,567 ,268.7
report period 82 372.69
.20 1
(Decrease is
stated with “-”)
(I) Total 92,01 92,013
comprehensive 3,726 ,726.8
income .89 9
(II) Owners 1,328. 1,328.
62
FIYTA Holdings Ltd. 2015 Semi-Annual Report
investment and 82 82
decrease of
capital
1. Common
shares
contributed by
the
shareholders
2. Capital
contributed by
other equity
instruments
holders
3. Amount of
share payment
charged to the
owners equity
1,328. 1,328.
4. Others
82 82
-48,4 -39,27
(III) Profit 9,201,
78,15 6,787.
Distribution 372.69
9.69 00
1. Provision of -9,20
9,201,
surplus public 1,372
372.69
reserve .69
2. Distribution
-39,2 -39,27
to the owner
76,78 6,787.
(or
7.00 00
shareholders)
3. Others
(IV) Internal
carry-over of
owners equity
1. Increased
capital
converted from
capital reserve
(or capital
stock)
2. Increased
capital
63
FIYTA Holdings Ltd. 2015 Semi-Annual Report
converted from
surplus
reserve (or
capital stock)
3. Making up
Deficit with
Surplus Public
Reserve
4. Others
(V) Special
reserve
1. Provision in
the report
period
2. Application
in the report
period
(VI) Others
IV. Ending 392,7 531,16 165,91 384,6 1,474,
balance of the 67,87 3,822. 5,466. 69,88 517,04
report period 0.00 70 89 4.08 3.67
Legal representative: Xu Dongsheng Chief Financial Officer: Hu Xinglong Person in charge of the Accounting
Department: Hu Xinglong
I. 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 Peoples
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 Peoples 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 Companys A-shares and B-shares were all listed with Shenzhen Stock Exchange for
trading commencing from June 3, 1993.
On January 30, 1997, with approval by Shenzhen Municipal Administration for Industry and Commerce, the Company was
64
FIYTA Holdings Ltd. 2015 Semi-Annual Report
renamed as Shenzhen Fiyta Holdings Ltd.
On July 4, 1997, according to the equity assignment agreement between China National Aero-Technology Corporation
Shenzhen (CATIC Shenzhen Corporation) and CATIC Shenzhen Holdings Limited ( with original name of Shenzhen
CATIC Group Co., Ltd. (hereinafter referred to as CATIC Shenzhen), CATIC Shenzhen Corporation assigned 72.36 million
corporate shares (taking 52.24% of the Companys total shares) to CATIC Shenzhen. From then on, the Companys
controlling shareholder turned to be CATIC Shenzhen from CATIC Shenzhen Corporation.
On October 26, 2007, the Company implemented the equity separation reform, according to which the shareholder of the
Companys non-negotiable shares would pay shares to the whole shareholders of negotiable shares registered on the
equity record day as designated in the equity separation reform plan at the rate of 3.1 shares for every 10 shares held by
them while the Companys total 249,317,999 shares remained unchanged. So far, after the equity separation reform, the
proportion of the Companys shares held by CATIC Shenzhen reduced from 52.24% to 44.69%.
On February 29, 2008, due to expansion of the Companys business scope and with approval by Shenzhen Municipal
Administration for Industry and Commerce, the Companys enterprise corporate business licence number was changed
from 4403011001583 into 440301103196089.
Approved by China Securities Regulatory Commission (CSRC) with the Official Reply on Approval of Non-public Issuing
of Shenzhen Fiyta Holdings Ltd., ZHENG JIAN XU KE [2010] No. 1703 and the Official Reply on the Issue of Non-Public
Issuing of Shenzhen Fiyta Holdings Ltd. by State-owned Assets Supervision and Administration Commission of the State
Council [2010] No. 430, the Company was approved to non-publically issue no more than 50 million common shares
(A-shares). After completion of non-public issuing on December 9, 2010, the Companys registered capital increased to
CNY 280,548,479.00 and CATIC Shenzhen holds 41.49% of the Companys equity based capital.
On April 8, 2011, the Company took the total share capital of 280,548,479 shares as at December 31, 2010 as the base,
converted its capital reserve into share capital at the rate of 4 shares for every 10 shares. After the conversion, the
Companys total share capital became 392,767,870 shares.
Ended June 30, 2015, the Company accumulatively issued totally 392,767,870 shares of capital stock. For the detail, refer
to Note VII.53.
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: Xu Dongsheng. The
Companys registered office address: FIYTA Technology Building, Gaoxin S. Road One, Nanshan District, Shenzhen.
The Company has established the Shareholders General Meeting, the Board of Directors, the Supervisory Committee,
65
FIYTA Holdings Ltd. 2015 Semi-Annual Report
the Audit Committee, the Strategy Committee and the Nomination, Remuneration and Assessment Committee as the
governance organs, etc. The Company has also established a number of functional departments, including
comprehensive management department, human resource department, financial department, property department,
innovation & design department, strategy and information department, office of the Board of Directors, audit department,
R & D department, etc.
th
The financial statements and the notes to the financial statements were approved at the 17 meeting fo the Seventh
Board of Directors held on August 12, 2015.
IV. Basis of preparation of Financial Statements
1. Basis of preparation
The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by
the Ministry of Finance and their application guidelines, interpretations and other relevant requirements (collectively,
"Accounting Standards for Business Enterprises"). Besides, the Group discloses the relevant financial information in
accordance with Compilation Rules for Information Disclosure by Companies Offering Securities to the Public
No.15-General Provisions on Financial Reports (2014Revision) announced by China Securities Regulatory Commission.
2. Operation on Going Concern Basis
The financial statements of the Company have been prepared on going concern basis.
The Group follows the accrual basis of accounting. The financial statements are prepared under the historical cost
convention except for certain financial instruments. If impaired, the assets shall provide for impairment in accordance
with the relevant regulations.
V. Significant accounting policies and accounting estimates
Notice on specific accounting policy and accounting estimates:
The Group determines the policies of depreciation of fixed asset, amortization of intangible assets, capitalized
conditions of R&D expenses and revenue recognition according to the characteristics of its production and operation.
Refer to Note VI.16, Notes V.21 and Notve V.28 for specific accounting policies.
1. Representation of compliance with the Accounting Standards for Business Enterprises
The financial statements are in accordance with the requirements of the Accounting Standards for Business Enterprises,
which have truly and completely presented the financial position of the consolidated and company as of 31 December
2014 and their operating results and cash flows and other relevant information for January to June, 2015.
2. Accounting period
Accounting years tarts on 1 January and ends on 31December.
3. Operating Cycle
Theo perating cycle of the Group is 12 months.
4. Functional currency
66
FIYTA Holdings Ltd. 2015 Semi-Annual Report
The Company and its domestic subsidiaries adopt Renminbi (CNY) as functional currency.
Except Switzerland based Montres Chouriet SA (hereinafter referred to as the Swiss Company), a subsidiary of FIYTA
(Hong Kong) Limited (hereinafter referred to as FIYTA (Hong Kong) which takes Swiss Franc as the recording currency
according to the major economic environment of the place where its premises is located, the other overseas subsidiaries,
including Harmony World Watches International Limited (World Watch International), one of the subsidiaries of Shenzhen
Harmony World Watches Center Co., Ltd. (Harmony), FIYTA (Hong Kong) Limited, 68-Station Limited (68-Station), one of
FIYTA (Hong Kong) Limiteds 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 treatment for business combinations involving entities under common control and not under
Common control
(1) Business combinations involving entities under common control
For a business combination involving enterprises under common control, assets and liabilities that are obtained in a
business combination shall be measured at the carrying amount of the owners equity of the party being absorbed in the
consolidated financial statements of the ultimate controlling party at combination date, except for the adjustments of
different accounting policies. The difference between the carrying amount of the net assets obtained and the carrying
amount of the consideration paid for the combination (or total par value of shares issued) shall be adjusted to capital
reserve, if the capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against retained
earnings.
Business combinations involving entities under common control achieved in stages that involves multiple transactions
In the separate financial statements, the initial investment cost is the absorbing partys share of the carrying amount of the
owners equity of the party being absorbed in the consolidated financial statements of the ultimate controlling party at
combination date. The difference between initial investment cost and original investment carrying amount plus additional
investment cost at the combination date shall be adjusted to capital reserve (share/capital premium), if the capital reserve
is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings.
In the consolidated financial statements, assets and liabilities that are obtained in a business combination shall be
measured at the carrying amount of the owners equity of the party being absorbed in the consolidated financial
statements of the ultimate controlling party at combination date, except for the adjustments of different accounting policies.
The difference between the original investment carrying amount plus additional investment cost at the combination date
and the carrying amount of the net assets obtained shall be adjusted to capital reserve (share/capital premium), if the
capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings. The
long-term equity investment of the absorbing party prior to combination, profit or loss, other comprehensive income and
changes of other owners equity recognized between the later of obtaining date and when the absorbing party and the
absorbed party are under common ultimate control and combination date shall offset the opening retained earnings or
67
FIYTA Holdings Ltd. 2015 Semi-Annual Report
profit or loss for the current period in the comparative statement.
(2) Business combination involving entities not under common control
For business combinations involving entities not under common control, the consideration for each combination is
measured at the aggregate of the fair values, at the acquisition date, of assets given, liabilities incurred or assumed, and
equity securities issued by the acquirer in exchange for control of the acquiree. At the acquisition date, the acquired
assets, liabilities and contingent liabilities of the acquiree are measured at their fair value.
Where the cost of combination exceeds the acquirers interest in the fair value of the acquirees identifiable net assets, the
difference is recognized as goodwill, and measured on the basis of its costs minus the accumulative impairment
provisions. Where the cost of combination is less than the acquirers interest in the fair value of the acquirees identifiable
net assets, the difference is recognized in profit or loss for the current period after reassessment.
Business combinations involving entities not under common control achieved in stages that involves multiple transactions.
In the separate financial statements, the initial investment cost is the sum of the carrying amount of equity investment of
the acquiree held prior to the acquisition date and the additional investment cost at the acquisition date. When the
previously-held equity investment is accounted for under the equity method, any other comprehensive income previously
recognized shall be accounted fot on the same basis as would have been required if the investee had directly disposed of
the related assets or liabilities. The owners equity recognized as the changes of the investees other owners equity
except for net profit or loss, other comprehensive income and profit distribution shall be transferred to profit or loss for the
current period when disposing the investment. For the previously-held equity investment which was accounted for in
accordance with ―Accounting Standard for Business Enterprises No.22 – Financial Instruments: Recognition and
Measurement the accumulated changes in fair value included in other comprehensive income shall be transferred to profit
or loss for the current period upon commencement of the cost method.
In the consolidated financial statements, the cost of combination amount to the consideration paid at the acquisition date
plus the fair value of equity investment of the acquiree held prior to the acquisition date. The cost of equity investment of
the acquiree held prior to the acquisition date shall be re-measured at the fair value at the acquisition date, the difference
between the fair value and par value shall be recognized as profit or loss for the current period. Other comprehensive
income and changes of other owners equity involving the acquirees previously-held equity except for other
comprehensive income due to the movement of net liabilities or assets in the investees re-measurement defined benefit
plan.
(3) Transaction costs for business combination
The intermediary and other relevant administrative expenses such as audit, legal and valuation advisory for business
combinations are recognized in profit or loss when incurred. Transaction costs of equity or debt securities issued as the
considerations of business combination are included in the initial recognition amounts.
6. Preparation of consolidated financial statements
(1) The scope of consolidated financial statements
The scope of consolidated financial statements shall be determined on the basis of control. Control exists when the
investor has all the following: power over the investee; exposure, or rights to variable returns from its involvement with the
68
FIYTA Holdings Ltd. 2015 Semi-Annual Report
investee; and the ability to use its power over the investee to affect the amount of the investors returns. A subsidiary is an
entity that is controlled by the Company (such as enterprises, deemed separate entities, and structured entities controlled
by the enterprises).
(2) Preparation of consolidated financial statements
The consolidated financial statements are prepared by the Company, based on the financial statements of the Company
and its subsidiaries, according to other relevant information. The accounting policies and accounting periods of the
subsidiaries should be in accordance with those established by the Company, all significant intercompany accounts and
transactions are eliminated on consolidation.
Where a subsidiary or business has been acquired through a business combination involving enterprises under common
control in the reporting period, the subsidiary and its business are included in the consolidated financial statements from
when they are controlled together under the ultimate party , and operation results and cash flows are included in the
consolidated income statement and consolidated cash flow statement from when they are controlled together under the
ultimate party, where a subsidiary or business has been acquired through a business combination not involving
enterprises under common control, the subsidiarys or business income, expenses and profits are included in the
consolidated income statement, and cash flows are included in the consolidated cash flow statement from the acquisition
date to the end of the reporting date.
The portion of a subsidiarys equity that is not attributable to the parent is treated as minority interests and presented in the
consolidated balance sheet within shareholders equity. That portion of net profit or loss of subsidiaries for the period
attributable to minority interests shall be presented in the consolidated income statement below the net profit line item as
minority interests. When the amount of loss for the current period attributable to the minority shareholders portion of the
opening balance of owners equity of the subsidiary, the excess shall be allocated against the minority interests.
Transactions that acquire the minority interests of subsidiaries or dispose part of equity investment but not lose control of
this subsidiary are accounted for equity transactions that adjust shareholders' equity attributable to the parent and minority
interests to reflect the changes of equity in subsidiaries. The difference between the adjustment of minority interests and
the fair value of consideration paid/received shall be adjusted to capital reserve, if the capital reserve is not sufficient to
absorb the difference, any excess shall be adjusted against retained earnings.
(3) Losing control over the investee
When an enterprise loses control over investee because of disposing part of equity investment or other reasons, the
remaining part of the equity investment should be re-measured at fair value at the date when losing control over the
investee; the cash received in disposal of the equity investment and the fair value of remaining part of the equity
investment, deducting net assets proportion calculated by original share percentage since the acquisition date should be
recorded in profit or loss for current period of disposal and the goodwill related to the subsidiary shall also be
derecognised; other comprehensive income related to the equity investment in subsidiaries before disposal date shall be
transferred to profit or loss for the current period of disposal.
Other comprehensive income and the movement of other owners equity related to the original subsidiarys equity
investment shall be transferred to profit or loss for the current period of disposal. except for other comprehensive income
due to the movement of net liabilities or assets in the investees re-measurement defined benefit plan.
(4) Disposing equity investment until losing control step by step
Multiple transactions resulting in a loss of control are considered as a single transaction, when any of the following
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
conditions is satisfied:
① The transactions are entered into at the same time or in contemplation of each other;
② The transactions form a single transaction designed to achieve an overall commercial effect;
③ The occurrence of one transaction is dependent on the occurrence of at least one other transaction;
④ One transaction considered on its own is not economically justified, but it is economically justified when considered
together with other transactions
For multiple transactions by disposing equity investment until losing control step by step, the carrying amount of long-term
equity investments related to each disposal of equity is transferred in the separate financial statements, the difference
between the consideration and the carrying amount of disposed long-term equity investments shall be recognized as
investment income.
In the consolidated financial statements, for disposing equity investment until losing control step by step, the
measurement of remaining equity and accounting for profit or loss of disposing equity refer to the above “Losing control
over the investee”. The difference between each consideration and the share of the subsidarys equity related to disposing
investment before losing control:
① Belong to “a bundled transaction”, is recognized as other comprehensive income and is transferred to profit or loss for
the current period when losing control.
② Not belong to “a bundled transaction”, is recognized as equity transactions and capital reserve and isnt allowed to be
transferred to profit or loss for the current period when losing control.
7. Joint arrangement
A joint arrangement is an arrangement of which two or more parties have joint control. The Group classifies joint
arrangements into joint operations and joint ventures.
(1) Joint operations
A joint operation is a joint arrangement whereby the joint operators have rights to the assets, and obligations
for the liabilities, relating to the arrangement.
The Group shall recognize the following items in the relation to its interest in a joint operation, and account
for them in accordance with relevant accounting standards:
A. its solely-held assets, and its share of any liabilities incurred jointly;
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
B. its soly-assumed liabilities, and its share of any liabilities incurred jointly;
C. its revenue from the sale of its share of the output arising from the joint operation;
D. its share of the revenue from the sale of the output by the joint operation; and
E. its soly-incurred expenses, and its share of any expenses incurred jointly.
(2)Joint ventures
A joint venture is a joint arrangement whereby the joint ventures have rights to the net assets of the arrangement.
The Group shall account for its investment in a joint venture in accordance with the requirement of long-term equity
investments relating to equity method.
8. Cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily drawn on demand. Cash equivalents are short-term,
highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of change in value.
9. Foreign currency transactions and translation of foreign currency statement
(1) Foreign currency transactions
If foreign currency transactions occur, translate them into the amount of functional currency by applying the spot exchange
rate at the dates of the transactions.
At the end of the period, foreign currency monetary items are translated to CNY using the spot exchange rate at the
balance sheet date. Exchange differences arising from the differences between the spot exchange rate prevailing at the
balance sheet date and those spot rates used on initial recognition or at the previous balance sheet date are recognized in
profit or loss for the current period; foreign currency non-monetary items carried at historical cost continue to be measured
at the amounts in functional currency translated using the spot exchange rates at the dates of the transactions; foreign
currency non-monetary items carried at fair value are translated using the spot exchange rates at the date when the fair
value was determined. Differences between the translated amount and the original amount of functional currency are
included in profit or loss for the current period.
(2) Translation of foreign currency statement
At the balance sheet date, when translating the foreign currency financial statements of overseas subsidiaries, the assets
and liabilities of the balance sheet are translated to CNY using the spot exchange rate at the balance sheet date; all items
except for "undistributed profits" of the shareholders equity are translated at the spot exchange rate.
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The revenue and expenses in the income statement are translated using the average exchange rate for the period. All
items of the cash flow statement are translated using the average exchange rate for the period. As an adjustment item, the
impact of exchange rate changes on cash amount is reflected separately in the cash flow as "the impact of exchange rate
changes on cash and cash equivalents".
Differences arising from the translation of financial statements are separately presented as the “other comprehensive
income” in the shareholders equity of the balance sheet.
When disposing overseas operations and losing control, the “difference of translation of foreign currency statement”
related to the overseas operation presented in shareholders equity in the balance sheet shall be transferred together or
as the percentage of disposing the overseas operation to profit or loss for the current period of disposal.
10. Financial instruments
Financial instruments refer to the contracts of forming enterprise financial assets and other entities financial liabilities or
equity instruments.
(1)Recognition and derecognition of financial instruments
A financial asset or financial liability is recognized when the Company becomes one party of financial instrument
contracts.
If one of the following conditions is met, the financial assets are terminated:
① The right of the contract to receive the cash flows of financial assets terminates;
② The financial asset has been transferred, and is in accordance with the following conditions for
derecognition.
If the obligations of financial liability have been discharged in total or in part, derecognize all or part of it. If the Company
(debtor) makes an agreement with the creditor to replace the current financial liability of assuming new financial liability
which contract provisons are different in substance, derecognize the current financial liability and meanwhile recognize as
the new financial liability.
If the financial assets are traded routinely, recognize and derecognize them at the transaction date.
(2) Classification and measurement of financial assets
Financial assets are, upon initial recognition, classified into the following four categories: financial assets at fair value
through profit or loss, held-to-maturity investments, loans and receivables, available-for-sale financial assets. Financial
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assets are initially recognized at fair value. In the case of financial assets at fair value through profit or loss, the related
transaction costs are recognized in profit or loss for the current period. For other financial assets, transaction costs that
are attributable to the acquisition of the financial assets are included in the initial recognition amounts.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and those designated upon
initial recognition as at fair value through profit or loss. This kind of financial assets are subsequently measured at fair
value, all realized and unrealized gains and losses are recognized in profit or loss for the current period.
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity
dates that the Company has the positive intention and ability to hold to maturity. Held-to-maturity investments are
subsequently measured at amortized cost using the effective interest method; gains and losses arising from derecognition,
impairment or amortization is recognized in profit or loss for the current period.
Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market including account receivables and other receivables (Note III、12). Receivables are subsequently measured at
amortized cost using the effective interest method; gains and losses arising from derecognition, impairment or
amortization is recognized in profit or loss for the current period.
Available-for-sale financial assets (AFS financial assets)
AFS financial assets are those non-derivative financial assets that are designated as available for sale and those financial
assets in addition to those above mentioned. AFS financial assets are subsequently measured at fair value, the discount
or premium are amortized using the effective interest method and recognized as interest income. The gains and losses
arising from changes in fair value of AFS financial assets (other than impairment losses and foreign exchange gains and
losses resulted from foreign currency monetary assets which are recognized in profit or loss for the current period) are
recognized as other comprehensive income, until the financial assets are derecognized, are transferred to profit or loss for
the current period. Interest income and dividends related to the AFS financial assets are recognized as profit or loss for
the current period.
Equity instrument investment with no quoted price in active markets and with not reliably measured fair value, and
derivative financial assets for the equity instrument and settled by paying the equity instrument are measured at cost.
(3)Classification and measurement of financial liabilities
On initial recognition, financial liabilities are classified as: financial liabilities at fair value through profit or loss (FVTPL) or
other financial liabilities. For financial liabilities not classified as at fair value through profit or loss financial liabilities, the
transaction costs are recognized in the initially recognized amount.
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Financial liabilities at FVTPL
Financial liabilities at FVTPL include transaction financial liabilities and financial liabilities designated as at fair value
through profit or loss in the initial recognition. Such financial liabilities are subsequently measured at fair value, all realized
and unrealized gains and losses are recognized in profit or loss for the current period.
Other financial liabilities
Derivative financial liabilities which are linked to equity instrument that is not quoted in an active market and its fair value
cannot be reliably measured and settled by delivering the equity instrument are subsequently measured at cost. Other
financial liabilities are subsequently measured at amortized cost using the effective interest method; gains and losses
arising from derecognition or amortization is recognized in profit or loss for the current period.
(4)Derivative financial instruments and embedded derivative instruments
Derivative financial instruments of the Group are initially measured at the fair value of the date a derivative contract
entered into and subsequently measured at their fair value. Derivative financial instruments of positive fair value are
recognized as assets; those of negative fair value are recognized as liabilities. Any gains or losses arising from changes in
fair value which do not meet the requirements of hedge accounting are directly recognized to profit or loss for the current
period.
For hybrid instruments including embedded derivative instruments such as designated financial assets or liabilities
measured at fair value through profit or loss that there isnt close relationship between embedded derivative instruments
and their principal contract in the aspects of economic features and risks and is the same as the conditions for embedded
derivatives and individual instruments satisfy the definition of derivative instruments, embedded derivative instruments are
separated from hybrid instruments and treated as separate derivative financial instruments. If embedded derivative
instruments isnt separately measured initially or subsequently at balance sheet date, hybrid instruments as a whole is
designated as financial assets or liabilities measured at fair value through profit or loss.
(5) Fair value of financial instruments
Determination of fair value of financial assets and financial liabilities refers to Note III.11.
(6) Impairment of financial assets
The Company assesses the carrying amount of financial assets at each balance sheet date other than those at fair value
through profit or loss, if there is objective evidence that financial assets are impaired, the Company determines the
amount of impairment loss. Objective evidence of impairment of financial assets are the matters that occurred after the
initial recognition of financial assets which has impact on the expected future cash flows of financial assets, and can be
reliably measured by the Company.
Theres objective evidence that the financial assets are impaired including the following observable situations:
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
① The issuer or debtor has severe financial difficulties;
② The debtor has violated terms of the contract, such as the payment of the interest or principal is default or
overdue;
③ Considering economic or legal factors, the Company made concessions to a debtor in financial difficulties;
④ The debtor has probably bankruptcy or other financial reorganization;
⑤ The issuer has so sever financial difficulties that financial assets cant continue to be traded in an active market;
⑥ The cash flow of some asset in a group of financial assets can not be identified to be reduced, but after evaluating it as
a whole according to the public data, the expected future cash flow of the group of financial assets since its initial
recognition has definitely been reduced and measurable, including:
- The group of financial assets of the debtor s ability to pay gradually deteriorates;
- The economy in the debtors country or region appears likely to lead to the situation that the group of financial assets can
not pay
① The adverse changes of technology, market, economic or other legal environment the debtor operates in cause
investors in equity instrument may not recover the investment cost;
② The fair value of equity instrument declines seriously or untemporarily, such as the fair value of equity instrument at the
balance sheet date is over 50% less than the initial investment cost (including 50%) or the period that is less than the
initial investment cost lasts more than 12 months (including 12 months).
The period that is less than the initial investment cost lasts more than 12 months (including 12 months) refers to that the
average fair value of equity investment is less than the initial investment cost monthly for 12 months.
③ There are other objective evidences that financial assets are impaired.
Financial asset measured at amortized cost.
If theres objective evidence that the financial assets are impaired, then the carrying amount of financial assets shall be
reduced to the present value of estimated future cash flows (excluding future credit losses that have not been incurred),
with the reduced amount recognized to profit or loss for the current period. The present value of estimated future cash
flows is carried according to the financial asset's original effective interest rate, and considers the value of collateral.
For a financial asset that is individually significant, the Company assesses the asset individually for impairment, if there is
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
objective evidence that it has been impaired; recognize the impairment loss in profit or loss for the current period. For a
financial asset that is not individually significant, the Company assesses the asset by including the asset in a group of
financial assets with similar credit risk characteristics and collectively assess them for impairment. For an individually
assessed financial asset (whether the financial asset is individually significant or not individually significant), the Company
includes the asset in a group of financial assets with similar credit risk characteristics and collectively assessment for
impairment. Asset for which an impairment loss is individually recognized is not included in a collective assessment of
impairment.
If, after an impairment loss has been recognized on financial assets measured at amortized cost, there is objective
evidence of a recovery in value of the financial asset which can be related objectively to an event occurring after the
impairment was recognized, the previously recognized impairment loss is reversed through profit or loss. A reversal of an
impairment loss will not result in the assets carrying amount exceeding that which would have been determined had no
impairment loss been recognized in prior years.
Available-for-sale financial assets
If theres objective evidence that AFS financial assets are impaired, accumulated losses due to decreases in fair value
previously recognized directly in other comprehensive income are reversed and charged to profit or loss for the current
period. The reversed accumulated losses are the asset's initial acquisition costs after deducting amounts recovered and
amortized, current fair value and impairment losses previously recognized in profit or loss.
If, in a subsequent period, the fair value of financial assets increases and the increase can be related objectively to an
event occurring after the impairment was recognized, the previously recognized impairment losses are reversed and
charged to profit or loss for the current period. The impairment losses of AFS equity instruments shall not be reversed
through profit or loss.
Financial assets measured at cost
If theres objective evidence that the financial assets are impaired, the difference between the carrying amount and the
present value discounted at the market rate of return on future cash flows of the similar financial assets shall be
recognized as impairment loss in profit or loss. The impairment loss recognized shall no longer be reversed.
(7) Transfer of financial assets
Transfer of financial assets refers to the transference or deliverance of financial assets to the other party (the transferee)
other than the issuer of financial assets.
The Group derecognizes a financial asset only if it transfers substantially all the risks and rewards of ownership of the
financial asset to the transferee; the Group should not derecognize a financial asset if it retains substantially all the risks
and rewards of ownership of the financial asset.
The Group neither transfers nor retains substantially all the risks and rewards of ownership, shows as the following
circumstances: if the Group has forgone control over the financial assets, derecognize the financial assets and verify the
assets and liabilities; if the Group retains its control of the financial asset, recognize the financial asset to the extent of its
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
continuing involvement in the transferred financial asset and recognize an associated liability.
(8) Offset between financial assets and financial liabilities
When the Group has the legal right of offset the recognized financial assets and financial liabilities, by now is able to carry
out the legal right and the Group plans to settle by net amount or meanwhile realise the financial assets and pay off
financial liabilities, the amount after offsetting financial assets and financial liabilities each other is presented in the
balance sheet. Besides, financial assets and financial liabilities are presented separately in the balance sheet and not
allowed to offset each other.
11. Receivables
(1) Individually significant receivable and provision for bad and doubtful debts individually
the carrying amount of accounts receivables of over CNY
800,000.00 and other receivables of over
Criteria of individually significant receivables
CNY500,000.00 are recognized as individually significant
receivable.
Receivables that are individually significant are subject to
separate impairment assessment, if there is objective
evidence that the impairment occurred, recognize the
provision for bad and doubtful debts according to the
Measurement of individually recognized bad and doubtful
difference between the present value of future cash flows,
debts provision of individually significant receivables:
which is lower, and the carrying amount.
If impairment of financial asset tested individually is not
established, recognize the provision of bad and doubtful
debts in combination.
(2) Receivables with provision for bad and doubtful debts based on the credit risk characteristics collectively
Group Description Method of provision for bad and doubtful debts
Group of ageing Ageing analysis method
Specific fund portfolio (receivables such as employee
pretty cash receivables, accounts receivable due from
subsidiaries included in consolidation scope, accounts
Other method
receivable for the sales between the last date of
settlement with department store and the date of balance
sheet)
For group of ageing, the rate of provision for bad and doubtful debts in ageing analysis method is as follows:
Percentage of provision for accounts Percentage of provision for other
Aging
receivable receivables
Within 1 year (including 1 year) 5.00% 5.00%
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1 - 2 years 10.00% 10.00%
2 - 3 years 30.00% 30.00%
Over 3 years 50.00% 50.00%
In grouping, the account receivable for which reserve for bad debt is provided based on balance percentage:
Inapplicable
In grouping, the accounts receivable for which the bad debt reserve is provided based on the other method:
Percentage of provision for accounts Percentage of provision for other
Group description
receivable receivables
Group of specific fund 0.00% 0.00%
(3) Accounts receivable with insignificant individual amount but individually recognized bad and
doubtful debts provision
Including the accounts receivable involving dispute or
lawsuit/arbitration with the counterparty and the
Reason of individual provision for bad and doubtful debts accounts receivable in which there exists evident
indication showing that a debtor may possibly be
unable to implement the obligation of repayment.
Provision for bad and doubtful debts is based on the
Method for provision for bad and doubtful debts difference of the present value of future cash flow
lower than the book value.
12. Inventories
(1) Classification
Inventory mainly includes raw material, work-in-process and finished goods.
(2) Determination of cost
Inventories are determined at the actual cost when acquired. Costs of raw materials, work in progress, finished goods are
calculated in weighted average costing (for finished goods of watches with FIYTA brand name), specific identification
method (for finished goods of branded watches), and first-in-first-out method (for raw material for FIYTA watches)when
issued.
(3) Recognition of the net realizable value and provision for decline in value of inventorie
Net realizable value (“NRV”) is based on the estimated selling price deducting the estimated costs to be incurred when
completed, the estimated selling expenses and related taxes amount. Recognition of the net realizable value is based on
the verified evidences and considers the purpose of holding inventories and the effect of post balance sheet events. In
particular:
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
①the NRV of inventories that are available for sale such as finished goods and materials held for trading are determined
using the estimated selling price less estimated selling expenses and related taxes if the business is in the ordinary course
of operation;
② the NRV of materials that need to be processed are determined using estimated selling price of finished goods which is
manufactured from the material less estimated cost of completion, estimated selling expenses and related taxes if the
business is in the ordinary course of operation.
The Company recognizes inventory impairment provision for FIYTA brand watches based on models category.
Impairment provisions for branded watches are recognized on an item-by-item basis.
Impairment provisions for raw materials of FIYTA watches are recognized by categories based on ultimate-customer
selling status of FIYTA finished watches taking into considerations of the exchangeability of the spare parts and the
special usage of materials.
If the cost of closing inventory of the Company exceeds its net realizable value at balance sheet date, recognize provision
for decline in value of inventories. The Company usually recognize provision for decline in value of inventories by a single
inventory item. If the factors of value of inventory previously written-down have disappeared, reverse provision for decline
in value of inventories in the amount originally made.
(4) Inventory system
The Group adopts perpetual inventory system
(5) Amortization method of low-value consumables and packaging material
The Groupd uses one-off amortization method when low-value consumables and packaging material are received for use.
13. Held-for-sale Assets as Classified
Inapplicable
14. Long-term equity investments
Long-term equity investments refer to equity investments where an investor has control of, or significant influence over, an
investee, as well as equity investments in joint ventures. Where the Group can exercise significant influence over the
investee, the investee is its associate.
(1)Recognization of investment cost
For a business combination involving enterprises under common control, the initial investment cost of the long-term equity
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investment shall be the absorbing partys share of the carrying amount of the owners equity of the party being absorbed in
the consolidated financial statements of the ultimate controlling party at combination date; for a business combination not
involving enterprises under common control, the initial investment cost of the long-term equity investment acquired shall
be the cost of acquisition.
For a long-term equity investment acquired by paying cash, the initial investment cost shall be the actual purchase price
has been paid; for a long-term equity investment acquired by the issue of equity securities, the initial investment cost shall
be the fair value of the equity securities issued.
(2)Subsequent measurement and recognition of profit or loss
Where the Group is able to exercise control over an investee, the long-term equity investment shall be accounted for
using the cost method; where the Group has investment in associates and operation ventures, the long-term equity
investment is accounted for using the equity method.
For long-term equity investment which is accounted for using the cost method, investment income is recognized in profit
or loss for the current period as the cash dividend or profit announced and distributed, except for those cash dividend or
profit which have already included in the actual payment or consideration of offer when the investment was made.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the Groups interest
in the fair values of the investees identifiable net assets, no adjustment is made to the initial investment cost; where the
initial investment cost is less than the Groups interest in the fair values of the investees identifiable net assets, the
difference is charged to profit or loss for the current period, and the carrying amount of the long-term equity investment is
adjusted accordingly.
Under the equity method, the Group shall recognize its share of the investees net profit or losses, as well as its share of
the investees other comprehensive income, as investment income or losses and other comprehensive income, and adjust
the carrying amount of the investment accordingly. The carrying amount of the investment shall be reduced by the portion
of any profit distributions or cash dividends declared by the investee that is attributable to the Group. The Groups share of
the investees owners equity changes, other than those arising from the investees net profit or loss, other comprehensive
income or profit distribution, shall be recognized in the Groups equity, and the carrying amount of the long-term equity
investment shall be adjusted accordingly. The share of the investees net profit or loss for the current period is recoginised
after adjusting the investees net profit in accordance with the Groups accounting policies and accounting period based
on the fair value of the identifiable assets when the investment is made.
When the Group becomes capable of exercising joint control or significant influence (but not control) over an investee due
to additional investment or other reasons, the Group shall change to the equity method and use the fair value of the
previously-held equity investment, together with additional investment cost, as the initial investment cost under the equity
method.Where the previously-held equity investment is classified as available–for–sale financial assets, the diffences
between the fair value and carrying amount and the accumulated changes in fair value included in other comprehensive
income shall be transferred to profit or loss for the current period upon commencement of the equity method.
When the Group can no longer exercise joint control of or significant influence over an investee due to partial disposal of
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equity investment or other reasons, the remaining equity investment shall be charged to profit or loss for the current period
for the difference between the fair value and the carrying amount at the date of the loss of joint control or significant
influence in accordance with Accounting Standard for Business Enterprises No.22 - Recognization and Measurement of
Financial Instruments. When the previously-held equity investment is accounted for under the equity method, any other
comprehensive income previously recognized shall be accounted for on the same basis as would have bee required if the
Group had directly disposed of the related assets or liabilities for the current period upon discontinuation of the equity
method; Other movement of owners equity related to original equity investment is transferred in profit or loss for the
current period.
When the Group can no longer exercise control over an investee due to partial disposal of equity investment or other
reasons and the remaining equity after disposal can exercise joint control of or significant influence over an investee, the
remaining equity is adjusted as using equity method from acquisition under equity method; when the remaining equity can
no longer exercise joint control of or significant influence over an investee, the remaining equity investment shall be
charged to profit or loss for the current period for the difference between the fair value and the carrying amount at the date
of the loss of control n accordance with Accounting
Standard for Business Enterprises No.22-Recognization and Measurement of Financial Instruments.
For the unrealized profit or loss between the Group and an associate or joint venture, the part belongs to the Group,
calculated with the percentage held by the Group, should be offset, and accordingly, the Group recognizes the investment
income or loss. Any losses resulting from transactions between the Group and the investee, which are attributable to asset
impairment shall not be eliminated.
For the long-term equity investments of associates and joint ventures held before January 1, 2007, if there exists equity
investment debit balance related to the investment, recognize investment income or loss after deducting the equity
investment debit balance in the original straight-line basis over the remaining period.
(3) Basis for recognition of joint control or significant influence over an investee
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities require the unanimous consent of the parties sharing control. In assessing whether an enterprise has
joint control of an arrangement, the Group shall first assess whether all the parties, a group of the parties, control the
arrangement collectively. All the parties, or a group of the parties, control the arrangement collectively when they must act
together to direct the relevant activities. Then assess whether decisions about the relevant activities require the
unanimous consent of those parties that control the arrangement collectively. When more than one combination of the
parties can control an arrangement collectively, joint control does not exist. A party that holds only protective rights does
not have joint control of the arrangement.
Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not
control or joint control of those policies. When determining whether an investor can exercise significant influence over an
investee, the effect of potential voting rights (for example, warrants, share options and convertible bonds) held by the
investors or other parties that are currently exercisable or convertible shall be considered.
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Significant influence refers to the power to participate in the financial and operating policy decisions of the investee but is
not control or joint control over those policies. When the Company, directly or indirectly through subsidiaries, owns 20% of
the investee (including 20%) or more but less than 50% of the voting shares, it has significant impact on the investee
unless there is clear evidence to show that in this case the Company cannot participate in the production and business
decisions of the investee, and cannot form a significant influence; when the Company owns 20% (excluding) or less of the
voting shares, generally it isnt considered to have a significant impact on the investee, unless there is clear evidence to
show that in this case the Company can participate in the production and business decisions of the investee so as to form
a significant influence.
(4)Method of impairment testing and impairment provision
For investment of subsidiaries, associates and joint ventures, refer to Note V. 22 for the Groups method of asset
impairment.
15. Investment property
Method for measurement of investment property
Measured according to the cost method
Depreciation or amortization method
Investment property is a property held to earn rentals or for capital appreciation or both, comprising a land use right that is
leased out, a land use right held and ready to transfer after appreciation, a building that is leased out.
The Groups investment property is initially measured at acquisition cost, and is depreciated or amortized on schedule in
accordance with the relevant rules of fixed assets or intangible assets.
Refer to Note V. 22 for asset impairment method of investment property subsequently measured using the cost model.
Disposal consideration of sale, transfer, retirement or damage of investment property after deducting its carrying amount
and related taxes amount is recognized in profit or loss for the current period.
Category Useful years (year) Residual rate % Annual depreciation
rate %
Plant & buildings 20-35 years 5 2.7-4.8
16. Fixed asset
(1) Recognition of fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of services, for rental to others, or for
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administrative purposes and have useful lives more than one accounting year.
A fixed asset shall be recognized only when it is probable that economic benefits associated with the asset will flow into
the enterprise and the cost of the asset can be measured reliably.
A fixed asset shall be initially measured at actual cost.
(2) Depreciation methods
Categories Depreciation method Depreciation life Residual rate Yearly depreciation
Average service life
Plant & buildings 20-35 5 2.7-4.8
method
Machinery & Average service life
10 5-10 9-9.5
equipment method
Average service life
Motor vehicles 5 5 19
method
Average service life
Electronic equipment 5 5 19
method
Average service life
Others 5 5 19
method
The Group uses Average service life method for depreciation. Fixed assets begin to be depreciated from the state of
intended use, and stop being depreciated when derecognized or classified as held for sale non-current assets. Without
considering impairment provision, the Groups annual depreciation rates are shown as the above table according to the
category, expected useful lives and estimated net residual values rates.
Among these, fixed assets which have been impaired should deduct the cumulative amount of impairment provision to
determine the depreciation rate.
For impairment test and the impairment provision of fixed asset, refer to Note III. 21.
The Group conduct reviews to the useful life, estimated net residual rate and depreciation method at least at each end of
the accounting year.
Adjust the useful lives of fixed assets if their expected useful lives are different with the original estimates; adjust the
estimated net residual values if they are different from the original estimates.
Overhaul costs
The overhaul costs occurred in regular inspection of fixed assets are recognized in the cost of fixed assets if there is
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undoubted evidence to confirm that this part meets the recognition criteria of fixed assets, otherwise, the overhaul costs
are recognized in profit or loss for the current period. Fixed assets are depreciated at the intervals of the regular overhaul.
(3) Basis for recognizing the fixed assets under financing lease, Pricing and Depreciation Methods
Inapplicable
17. Construction in progress
The cost of construction in progress is determined according to the actual expenditure incurred for the construction,
including all necessary construction expenditures incurred during the construction period, borrowing costs that shall be
capitalized before the construction reaches the condition for intended use and other relevant expenses.
Construction in progress is transferred to fixed assets when the asset is ready for its intended use.
For provision for impairment of construction in progress, refer to Note V.22.
18. Borrowing cost
(1) Recognition principle of borrowing cost capitalization
For borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, they
shall be capitalized and included in the cost of related assets; other borrowing costs are recognized as expenses and
included in profit or loss when incurred. Capitalization of such borrowing costs can commence only when all of the
following conditions are satisfied:
① Expenditures for the asset are being incurred, capital expenditure includes the expenditure in the form of cash payment,
transfer of non-cash assets or the interest bearing liabilities for the purpose of acquiring or constructing assets eligible for
capitalization;
② Borrowing costs are being incurred; and
③ Activities relating to the acquisition, construction or production of the asset that are necessary to prepare the asset for
its intended use or sale have commenced.
(2) Capitalization period of borrowing costs
Capitalization of such borrowing costs ceases when the qualifying assets being acquired, constructed or produced
become ready for their intended use or sale. The borrowing cost incurred after that is recognized as an expense in the
period in which they are incurred and included in profit or loss for the current period.
Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or production of a
qualifying asset is interrupted abnormally and when the interruption is for a continuous period of more than 3 months; the
borrowing costs in the normally interrupted period continue to capitalize.
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(3) Capitalization rate of borrowing costs and calculation of capitalization amount
Interest expenses of special borrowings incurred actually for the current period less interest income from borrowings at
bank or investment income from temporary investments is capitalized; capitalization amount is determined as
accumulative asset expenditure of general borrowings over weighted average asset expenditure of special borrowings
multiples capitalization rate of general borrowings. Capitalization rate is determined as calculating weighted average
interest rate of general borrowings.
In the capitalization period, exchange differences of special borrowings in foreign currency is totally capitalized; exchange
differences of general borrowings in foreign currency is recognized in profit or loss for the current period.
19. Biological Assets
Inapplicable
20. Oil and Gas Assets
Inapplicable
21. Intangible assets
(1) Pricing Method, Service Life and Impairment Test
Intangible assets of the Group include land use rights, software system, trademark rights etc.
The Group initially measures the intangible asset at cost, and analyzes and judges its service life when obtained. An
intangible asset with a finite useful life is amortized using the method which can reflect the expected realization of
economic benefits related to the asset over its expected useful life from when the asset is available for use; an intangible
asset whose expected realization cant be reliably determined is amortized using straight-line amortization; an intangible
asset with an indefinite useful life is not amortized.
Amortization methods of an intangible asset with a finite useful life are shown as follows:
Category Useful Life Amortization Method Remarks
Land use right 45-50 years Straight-line method -
Software system 5 years Straight-line method -
trademark rights 5-10 years Straight-line method -
For an intangible asset with a finite useful life, the Group reviews the useful life and amortization method at the end of
each financial year, if it is different from the previous estimates, adjust the previous estimates and deal with it according to
changes in accounting estimates.
The Group estimates an intangible asset can no longer bring future economic benefits to the Group at the end of a period,
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the carrying amount of which should be reversed to profit or loss for the current period.
Refer to Note V. 22 for impairment provision method for intangible assets.
(2) Accounting policy for internal research and development expenditure
Expenditure on an internal research and development project is classified into expenditure on the research phase and
expenditure on the development phase.
Expenditure on the research phase is recognized in profit or loss when incurred.
Expenditure on the development phase is capitalized only when the Group can satisfy all of the following conditions: the
technical feasibility of completing the intangible asset so that it will be available for use or sale; its intention to complete the
intangible asset is to use or sell it; how the intangible asset will generate economic benefits. Among other things, the
Group can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it
is to be used internally, the usefulness of the intangible asset; the availability of adequate technical, financial and other
resources to complete the development and the ability to use or sell the intangible asset; its ability to measure reliably the
expenditure attributable to the intangible asset during its development phase. Otherwise, it is charged to profit or loss.
The research and development projects of the Group will enter into the development stage after meeting the above
conditions and passing through the technical feasibility and economic feasibility studies and the formation of the project.
Capitalized expenditure on the development phase is presented as “development costs” in the balance sheet and shall be
transferred to intangible assets when the project is completed to its intended use state.
22. Impairment of long term assets
The impairment of subsidiaries, associates and joint ventures in the long-term equity investments, investment property
subsequently measured at cost model, fixed assets, construction in progress, intangible assets, goodwill and related
facilities, etc. (Excluding inventories, investment property measured at fair value model, deferred income tax assets and
financial assets) are determined as follows:
At the balance sheet date, the Group determines whether there may be evidence of impairment, if there is any, the Group
will estimate the recoverable amount for impairment, and then test for impairment.
For goodwill arising from a business combination, intangible assets with indefinite useful life and the intangible assets that
have not yet ready for use are tested for impairment annually regardless of whether such evidence exists.
The recoverable amount of an asset is determined by the higher amount of fair value deducting disposal costs and net
present value of future cash flows expected from the assets.
The Group estimates the recoverable amount based on individual asset; for individual asset which is difficult to estimate
the recoverable amount, the recoverable amount of the asset group is determined based on the asset group involving the
asset. The identification of the asset group is based on whether the cash flow generated from the asset group is
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independent of the major cash inflows from other assets or asset groups.
When the asset or asset group's recoverable amount is lower than its carrying amount, the Group reduces its carrying
amount to its recoverable amount, the reduced amount is included in profit or loss, while the provision for impairment of
assets is recognized.
For tests of goodwill impairment, the carrying amount of goodwill arising from a business combination shall be amortized
to the related asset group at reasonable method; that which is difficult to be amortized to the related asset group shall be
amortized to the group of asset groups. Related asset group or group of asset groups is asset group or group of asset
groups which can benefit from synergies of a business combination and is not greater than the reportable segment of the
Group.
When testing impairment, if asset group or group of asset groups relating to goodwill exists evidence of impairment, first of
all, the Group shall conduct impairment testing for asset group or group of asset groups which does not include goodwill,
and recognize corresponding impairment losses. Then asset group or group of asset groups which includes goodwill shall
be conducted impairment testing and compare its carrying amount and recoverable amounts. If the recoverable amount is
less than the carrying amount, then recognize the impairment loss of goodwill.
Once impairment loss is recognized, it cant be reversed in subsequent accounting periods.
23. Long-term deferred expenses
Long-term unamortized expenses occurred shall be priced at actual cost and averagely amortized during the predicted
benefit period. The long-term unamortized expenses that would not benefit the future accounting periods, the amortization
value shall be fully recorded in current profits and losses.
24. Employee benefits
(1) Short-term employee benefit
The Group shall recognize employee wages or salaries incurred, bonus, social security contributions such as premiums or
contributions on medical insurance, work injury insurance and maternity insurance and housing funds as liabilities through
profit or loss or related cost of assets for the financial year in which the employees render the related services. If the
liability is not expected to be settled wholly before twelve months after the end of the annual reporting period in which the
employees render the related services and have significant financial effects, it shall be measured at the discounted value.
(2) Post-employment benefits
Post-employment benefit plan includes defined contribution plans and defined benefit plans. Defined contribution plans
are post-employment benefit plans under which an enterprise pays fixed contributions into a separate fund and will have
no obligation to pay further contributions. Defined benefit plans are post-employment benefit plans other than defined
contribution plans.
Defined contribution plans
Defined contribution plans include primary endowment insurance and unemployment insurance.
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The Group shall recognize, in the accounting period in which an employee provides service, the contribution payable to a
defined contribution plan as a liability, with a corresponding charge to the profit or loss for the current period or the cost of
a relevant asset.
For defined benefit plans, independent actuaries shall actuarial value at the balance sheet date to determine the cost of
rendering welfare under estimated accumulated welfare unit method. The Group shall recognize the following
components of employee benefits cost arising form defined benefit plan:
①service cost, comprising current service cost, past service cost and any gain or loss on settlement. Current service cost
is the increase in the present value of the defined benefit plan obligation resulting from employee service in the current
period. Past service cost is the increase or decrease in the present value of the defined benefit plan obligation for
employee service in prior periods, resulting from a plan amendment.
②net interest on the net defined benefit plan liabilities(asset), including interest income on plan assets, interest cost on
the defined benefit plan obligation and interest on the effect of the asset ceiling.
③ changes as a result of remeasurement of the net defined benefit liability(asset).
Item① and item② above should berecognized in profit or loss for the current period unless another Accounting Standard
requires or permits the inclusion of the employee benefit costs in the cost of assets. Item ③ shall be recognized in other
comprehensive income and shall not reclassified to profit or loss in a subsequent period. However, the Group may transfer
those amounts recognized in other comprehensive income within equity.
(3) Termination benefits
The group which provides termination benefits to employees shall recognize an employee benefits liability for termination
benefits, with a corresponding charge to the profit or loss for the current period, at the earlier of the following dates: When
the Group cannot unilaterally withdraw the offer of termination benefits because of an employment termination plan or a
curtailment proposal; When the Group recognizes costs or expenses related to a restructuring that involves the payment
of termination benefits.
For retirement plans within the Group and economic compensation before the formal retirement date attributable to
termination benefits, the salaries to pay retirement within the Group and social securities is recognized one-off in profit or
loss for the current period between the employees stop rendering service and formal retirement. Economic compensation
after formal retirement date (such as formal endowment insurance) shall be accounted for as post-employment benefits.
(4) Other long-term employee benefits
When other long-term employee benefits provided by the Group to the employees satisfied the conditions for classifying
as a defined contribution plan, those benefits shall be accounted for in accordance with the above requirements relating to
defined contribution plan, but the movement of net liabilities or assets in the investees re-measurement defined benefit
plan in the cost of relevant employee benefits shall be recognized in profit or loss for the current period or the relevant cost
of assets.
25. Predicted liabilities
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An obligation for additional losses of investees related to a contingency is recognized as a provision when all of the
following conditions are satisfied:
(1) The obligation is a present obligation of the Group;
(2) It is probable that an outflow of economic benefits will be required to settle the obligation;
(3) The amount of the obligation can be measured reliably.
Provisions are initially measured at the best estimate of the payment to settle the associated obligations and consider the
relevant risk, uncertainty and time value of money. If the impact of time value of money is significant, the best estimate is
determined as its present value of future cash outflow. The Group reviews the carrying amount of provisions at the
balance sheet date and adjusts the carrying amount to reflect the best estimate.
If the expenses for clearing of predictive liability is fully or partially compensated by a third party, and the compensated
amount can be definitely received, it is recognized separated as asset. The compensated amount shall not be greater
than the carrying amount of the predictive liability.
26. Payment for shares
Inapplicable
27. Other financial instruments, such as preferred shares, perpetual liabilities, etc.
Inapplicable
28. Revenue
(1) General
① Sale of goods
Revenue from the sale of goods is recognized only when all of the following conditions are satisfied: the Group has
transferred to the buyer the significant risks and rewards of ownership of the goods, the Group retains neither continuing
managerial involvement nor effective control over the goods sold, and related income has been achieved or evidences of
receivable have been obtained, and the associated costs can be measured reliably.
②Providing of services
Where the outcome of a transaction involving the providing of services can be estimated reliably, at the end of the period,
revenue associated with the transaction is recognized using the percentage of completion method.
The stage of completion of a transaction involving the providing of services is determined according to the proportion of
the services performed to the total services to be performed.
The outcome of a transaction involving the providing of services can be estimated reliably only when all of the following
conditions can be satisfied at the same time:
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A. The amount of revenue can be measured reliably; B. The associated economic benefits are likely to flow into the
enterprise; C. The stage of completion of the transaction can be measured reliably; D. The costs incurred and to be
incurred in the transaction can be measured reliably.
If the outcome of a transaction involving the providing of services cant be estimated reliably, the revenue of providing of
services is recognized at the service cost that incurred and is estimated to obtain compensation and the service cost
incurred is recognized in profit or loss for the current period. If the service cost incurred is estimated to obtain
compensation, revenue isnt recognized.
③Transfer of the right to use assets
The Group will recognize revenue when the economic benefits related to transfer of the right to use assets can flow in and
the amount of revenue can be measured reliably.
④ Interest income
The interest income shall be calculated based on the tenure of the Groups monetary funds used by others and the actual
interest rates used.
⑤ Revenue from property leasing
The amount of revenue from property leasing are recognized when the rentals are collected or evidence of receipt of
payments are obtained in accordance with the tenure (consider rental-free period, if any) and rental stated in the leasing
contract or agreement.
(2) Detailed method of revenue recognition
The watches sold by the Group includes two types, one is the self-manufactured FIYTA watch, the sales of which is
managed by branch offices and provincial-level sale sections by regions set up by Sales Company, a subsidiary of the
Company. The other is brand watches, the sales of which are controlled by HARMONY Company, a subsidiary of the
Company, and we act as agent Regarding to sales modes, a small portion of the sales of self-manufactured FIYTA
watches is sold through direct sales to customer and consignment sales while most self-manufactured FIYTA watches and
brand watches under agent are under two sales modes, namely exclusive shop and shop-in-shop. Detailed method of
revenue recognition as follows:
A. Direct sales to the customers
Under direct sales to the customers mode, the Group delivers products to customers and recognizes sales income after
customers check and accept.
B. Exclusive shop
Under exclusive shop mode, the Group delivers products to customers and recognizes sales income after customers
check, accept and pay.
C. Shop-in-shop
Under shop-in-shop mode, the Group delivers products to customers, sales staff issues notes to retail customers and
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recognizes sales income after customers check and accept and department store collects the payment from the
customers.
D. Consignment sales
Under consignment sales mode, the Group receives the detail of the sales list from consignee and recognizes revenue
while issuing invoice to distributors.
29. Government grants
(1) Basis for judging asset related government grants and the accounting treatment method
A government grant is recognized only when the Group can comply with the conditions attaching to the grant
and the Group can receive the grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable.
Where there is undoubted evidence that the Group can comply with the conditions attaching to the grants and the Group
will receive the grants, they can be measured in accordance with the receivable amount; otherwise, they shall be
measured according to the amount actually received.
A government grant related to an asset is a grant obtained by the Group used for purchase or construction, or forming the
long-term assets by other ways. Otherwise, the government grant is treated as a government grant related to income.
A government grant related to an asset value that the government document does not specify the grantee and can form
the long-term asset is treated as a government grant related to an asset. Otherwise, the government grant is treated as a
government grant related to income. If it is difficult to distinguish, the government grant as a whole is treated as a
government grant related to income.
(2) Basis for judging income related government grants and the accounting treatment method
A government grant related to an asset is recognized as deferred income, and evenly amortized to profit or loss over the
useful life of the related asset. For a government grant related to income, if the grant is a compensation for related
expenses or losses already incurred, the grant is recognized immediately in profit or loss for the current period; if the grant
is a compensation for related expenses or losses to be incurred in subsequent periods, the grant is recognized as
deferred income, and then recognized in profit or loss over the periods in which the costs are recognized. Government
grants measured at nominal amounts are directly recognized in profit or loss for the period.
For repayment of a government grant already recognized, if there is related deferred income, the repayment is offset
against the carrying amount of the deferred income, and any excess is recognized in profit or loss for the period. If there is
no related deferred income, the repayment is recognized immediately in profit or loss for the period.
30. Deferred tax assets and deferred tax liabilities
Tax expense comprises current tax expense and deferred tax expense. Current tax and deferred tax are included in profit
or loss for the current period as tax expense, except for deferred tax related to transactions or events that are directly
recognized in shareholders equity which are recognized directly in shareholders equity, and deferred tax arising from a
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
business combination, which is adjusted against the carrying amount of goodwill.
Temporary differences arising from the difference between the carrying amount of an asset or liability and its tax base are
recognized as deferred tax using the balance sheet liability method.
All the taxable temporary differences are recognized as deferred tax liabilities except for those incurred in the following
transactions:
(1)The initial recognition of goodwill, and the initial recognition of an asset or liability in a transaction which is neither a
business combination nor affects accounting profit or taxable profit (or deductible loss) when the transaction occurs;
(2)The taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, and the
Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future.
The Group recognizes a deferred tax asset for the carry forward of deductible temporary differences, deductible losses
and tax credits to subsequent periods, to the extent that it is probable that future taxable profits will be available against
which the deductible temporary differences, deductible losses and tax credits can be utilized, except for those incurred in
the following transactions:
(1)The transaction is neither a business combination nor affects accounting profit or taxable profit (or deductible loss)
when the transaction occurs;
(2)The deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, the
corresponding deferred tax asset is recognized when both of the following conditions are satisfied: it is probable that the
temporary difference will reverse in the foreseeable future, it is probable that taxable profits will be available in the future,
against which the temporary difference can be utilized.
At the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected
to apply to the period when the asset is realized or the liability is settled, and their tax effect is reflected.
At the balance sheet date, the Group reviews the carrying amount of a deferred tax asset. If it is probable that sufficient
taxable profits will not be available in future periods to allow the benefit of the deferred tax asset to be utilized, the carrying
amount of the deferred tax asset is reduced. Any such reduction in amount is reversed when it becomes probable that
sufficient taxable profits will be available.
31. Lease
(1) Accounting treatment method for operating lease
① As lessor
Lease from operating leases is recognized in profit or loss on a straight-line basis respectively over different periods of the
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lease term. The initial direct costs incurred are recognized in profit or loss for the current period.
② As lessee
Lease from operating leases is recognized in the cost of relevant assets or profit or loss on a straight-line basis over the
lease term. The initial direct costs incurred are recognized in profit or loss for the current period
(2) Accounting treatment method for finance lease
① As lessor
In finance leases, at the beginning date of lease period, the Group will recognize the sum of minimum lease collection and
initial direct costs as the recorded value of finance leases receivable and meanwhile is recorded as unguaranteed residual
value; the difference between the sum of minimum lease collection, initial direct costs and unguaranteed residual value
and their present value is recorded as unrecognized financing charges.
② As lessee
In finance leases, at the beginning date of lease period, the Group will recognize the lower of the fair value of leased asset
of the beginning date of lease period and the present value of minimum lease payment as the recorded value of the
leased asset, their difference is recorded as unrecognized financing charges. Initial direct costs are recognized in leased
assets value. Unrecognized financing charges are measured at amortized cost using the effective interest method in the
periods of leasing and recognized in financing charges for the current period. The Group depreciates the leased assets by
adopting the depreciation policy consistent with self-owned
fixed assets.
32. Other important accounting policy and accounting estimate
(1) Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.
The Group measures the related assets or liabilities at fair value assuming the assets or liabilities are exchanged in an
orderly transaction in the principal market; in the absence of a principal market, in the most advantageous market for the
assets or liabilities.
For financial assets or financial liabilities in active markets, the Group uses the quoted prices in active markets as their fair
value. Otherwise, the Group uses valuation technique to determine their fair value.
A fair value measurement of a non-financial asset takes into account a market participants ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset
in its highest and best use.
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The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available
to measure fair value, maximising the use of relevant observable inputs and if the observable inputs arent available or
impractical, using unobservable inputs.
Assets and liabilities measured or disclosed at fair value in the financial statements are determined which level of fair
value according to the significant lowest level input to the entire measurement: Level 1 inputs are quoted prices
(unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2
inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly; Level 3 inputs are unobservable inputs for the asset or liability.
At the balance sheet date the Group revalues assets and liabilities continuing to be measured at fair value in the financial
statements to determine whether to convert among the levels of fair value measurement.
(2) Critical accounting judgments and estimates
The Group gives continuous assessment of the reasonable expectations of future events and the critical accounting
estimates and key assumptions based on its historical experience and other factors.
The critical accounting estimates and key assumptions that are likely to lead to significant adjusted risks of the carrying
amount of assets and liabilities for the next financial year are listed as follows:
① Bad debt provision
The allowance method is adopted by the Group to account for losses on bad debts for receivables. Impairment of
accounts receivable is made based on estimation of its recoverability, which requires the management to make judgments
and estimates. The difference between the actual outcome and the estimates will have effects on the carrying amounts of
accounts receivable and on provision or reversal of the provision for bad debts of the accounting period in which the
estimates will be changed.
② Inventory provision for branded watches
For the brand watches through distribution channel with stock aging of over 3 years, the Groups management believes it
is with an up going trend for its price and the sales of branded watches is promising in the future. The Groups
management checked the branded watches for its NRV at the end of the accounting period, and believed that the full
amount of value of branded watches can be recovered even in the case that the stock aging of the branded watches
increase. If there is any evidence indicated that the NRV is lower than its carrying amount, adjustments will be made in the
period when such indicators appear. Impairment to branded watches requires the management to make judgements and
estimation on the basis of obtaining reliable evidences and taking consideration of the intention of holding the branded
watches and events after the balance sheet date. The difference between actual outcome and the previous estimation will
affect the carrying
amount of the inventory and recognizing or reversal of inventory impairment provision.
The Groups management believes the method of recognizing and reviewing impairment provision for branded watches is
appropriate.
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③ Impairment provision for non-current non-financial assets
At the balance sheet date, the Group judges whether there are indicators of impairment for non-current assets other than
financial assets. For an intangible asset with an indefinite useful life except for annually impairment test, an impairment
test will be conducted if there are any indicators of impairment occur. For non-current assets other than financial assets,
an impairment test shall be made if there are evidences indicating the carrying amounts cannot be recovered in full
amount.
An asset or asset group is impaired when its carrying amount is higher than its recoverable amount (i.e. the higher of its
fair value less the disposal expenses and the present value of the estimated future cash flows).
The net amount of fair value less the disposal expenses are determined with reference to the quoted price of similar
assets in a sales agreement in an arms length transaction or an observable market price less incremental costs directly
attributable to disposal of the asset.
When estimating the present value of future cash flows, significant judgments are involved to the production output, selling
price, relevant business costs of the asset (or asset group) and the discount rate adopted in calculating the present value.
In estimating the recoverable amount, the Group will adopt all information available, such as forecasts for the production
output, the selling price and relevant business costs, which are made according to reasonable and supportive
assumptions.
The Group conducts impairment test to goodwill at least once a year. This requires estimating the present value of future
cash flows of asset group or combination of asset group to which goodwill has been allocated.
In estimating the present value of future cash flows, the Group needs estimate future cash flows generated from the asset
group or the combination of asset groups and choose appropriate discount rates.
④ Depreciation and amortization
Taking the residual value into consideration, an investment property, fixed asset and intangible asset are depreciated or
amortized on a straight-line basis over its useful life. The Group reviews the useful life periodically to determine the
amount of depreciation or amortization which shall be recognized in each accounting period. The useful life is determined
according to historical experience of similar assets and technological renovation estimated. The amount of depreciation or
amortization shall be adjusted in future accounting periods if there are material changes in estimates made before.
⑤ Deferred income tax asset
A deferred tax asset shall be recognized for the unused deductible losses to the extent that it is probable that future
taxable profit will be available against which the deductible losses can be utilized. Taking the taxation planning into
consideration, the management of the Group is required to make significant amount of judgments to estimate the time and
the amount of future taxable profit in order to determine the amount of deferred income tax assets to be recognized.
⑥ Corporate income tax
For some transactions in the Groups ordinary course of business, uncertainties exist in their tax treatment and calculation.
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
An approval from the tax authority is needed to determine whether an item is deductible before tax. If the final confirmation
from the tax authority differs with the original estimation, the difference will have effects on the current income tax and
deferred income tax of the period in which the final confirmation is made by the tax authority.
⑦ After-sale quality warranty
The Group has the obligation to provide warrant to the quality of goods sold, and is responsible for damages arising from
the repair and replacement due to defective goods. The Group estimates and draws related provision on its after-sale
quality warranty commitment to customers with respect to the goods sold. In the case that the contingent event becomes
a current obligation and performance of the current obligation may be very likely to cause economic benefit flow out of the
Group, the Group recognizes provision based on the best estimates to be spent for fulfilling the related current obligation.
Otherwise, if the event does not become a current obligation, no predictions needed. In the course of judgment, the Group
needs to consider the recent maintenance data which may not be likely to reflect the future maintenance situations. Any
increase or reduction of the provision may possibly affect the profit or loss in the future year.
33. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
Inapplicable
(2) Changes in significant accounting estimates
Inapplicable
34. Miscelleneous
Inapplicable
VI. Taxation
1. Types of taxes and tax rates
Type of taxes Tax base Tax rates
VAT Taxable income 17
Consumption tax Import or produce high-class watches 20
Business tax Taxable income 5
Urban maintenance and construction tax Turnover tax payable 7
Corporate income tax
Educational surcharges Turnover tax payable 3
In case there exist any taxpayer paying corporate income tax at different tax rates, disclose the information
Name of taxpayer Income tax rates
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
The Company (Notes ①②) 25
Shenzhen Harmony World Watches Center Co., Ltd. (Note ①) 25
Shenzhen FIYTA Precision Timer Manufacturing Co., Ltd.
25
(Manufacturing Company) (Note②)
FIYTA (Hong Kong) Limited (Note ④) 16.5
Station 68 (Note ④) 16.5
Nature Art Limited (Note ④) 16.5
Protop Limited (Note ④) 16.5
World Watches International (Note ④) 16.5
Shenzhen FIYTA Technology Development Co., Ltd. (Technology
15
Company) (Notes ②③)
Shenzhen Symphony Trading Co., Ltd. (Trading Company) (Note ⑤) 25
Beijing Henglianda Watch Center Co., Ltd (Henglianda Company) (Note
25
⑤)
Kunming Lishan Department Store Co., Ltd. (Lishan Department Store)
25
(Note ⑤)
Harbin World Watches Distribution Co., Ltd. (Harbin Company) (Note ⑤) 25
Shenzhen Harmony Culture Communication Co., Ltd (Culture
25
Company) (Note ⑤)
Emile Choureit Timing (Shenzhen) Ltd. (Emile Choureit Shenzhen
25
Company) (Note ⑤)
FIYTA Sales Co., Ltd. (Sales Company) (Notes ①⑤) 25
Liaoning Hengdarui Commercial & Trade Co., Ltd (Hengdarui Company)
25
(Note Note ⑤)
Swiss Company (Note ⑥) 30
2. Tax Preferences
Note ①: According to the regulations stated in GuoShuiFa (2008) No. 28, “Interim Administration Method for Levy of
Corporate Income Tax to Enterprise that Operates Cross-regionally”, the head office of the Company and its branch
offices, the head office of HARMONY Company and its branch offices adopt tax submission method of “unified calculation,
managing by classes, pre-paid in its registered place, settlement in total, and adjustment by finance authorities” starting
from 1 January 2008. 50% is shared and prepaid by branches and 50% is prepaid by the headquarters.
Note ②: According to Notice of “Pre-tax Deduction of Enterprise Research and Development Expenses (Interim)”,
GuoShui FA (2008) No. 116 issued by State Administration of Taxation on 10 Dec. 2008, research and development
expenses, which are charged to profit or loss instead of being capitalized as intangible assets, that incurred by the
Company and the Manufacture Company for developing new technology, new product and new technique can be
deducted by 50% extra on top of actual expensed charged in profit or loss.
97
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Note ③: According to ShenGuoShuiBao Xi GaoXinNian Du Bei (2014) No. 0027 “Notice to Acceptance of Annual
Information Filing of High-tech Enterprises ―issued by Xixiang Tax Sub Bureau of National Taxation Bureau of Baoan
District of Shenzhen, the Company enjoys the “income tax rate exclusion of high-tech enterprises key supported by the
state”.
Note ④: These companies are registered in Hong Kong and the income tax rate of Hong Kong applicable is 16.50% this
year.
Note ⑤: According to the People's Republic of China Enterprise Income Tax Law, the income tax rate is 25% for
residential enterprises since 1 January 2008.
Note ⑥: The tax rate of 30% is applicable for Swiss Company as it registered in Switzerland.
3. Miscelleneous
(2) Property tax
In accordance with Article 5 of “Circular on Printing and Issuing Reply to Issues Related to Property Tax and Vehicle and
Vessel Usage Tax”, Shen Di ShuiFa (1999) No.374 issued by Shenzhen Local Taxation Bureau, property leased out by
manufacturing or business entity are taxed at 1.2% on the bases of 70% of the original cost of the property.
Properties of the Group that situated in Shenzhen are taxed according to this notice. Properties situated in other cities are
taxed according to local regulations.
VII. Notes to main items of consolidated financial statements
1. Cash and bank balances
In CNY
Items Ending balance Opening balance
Cash on hand 403,915.95 338,694.81
Bank deposit 158,470,296.10 114,319,146.38
Other monetary funds 1,580,520.86 1,797,229.35
Total 160,454,732.91 116,455,070.54
Other note:
Amount of CNY1,575,000.00 in other monetary funds is the security deposit with Shenzhen Center Branch of Agricultural
Bank of China for issuing of irrevocable letter of guarantee.
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
2. Financial assets measured based on fair value and its movements counted to the current gain
or loss
Inapplicable
3. Derivative financial assets
Inapplicable
4. Notes receivable
(1) Presentation of classification of notes receivable
In CNY
Items Ending balance Opening balance
Bank acceptance bill 3,790,772.80 5,162,768.29
Trade acceptance bill 3,112,588.90 1,000,000.00
Total 6,903,361.70 6,162,768.29
(2) Notes receivable already pledged by the Company at the end of the reporting period
Inapplicable
(3) Endorsed or discounted notes receivable at the end of the reproting period, but not yet due on
the balance sheet date
Inapplicable
(4) Notes transferred to receivables due to issuer’s default at the end of the reporting period
Inapplicable
5. Accounts receivable
(1) Accounts receivables disclosed by types
In CNY
Ending balance Opening balance
Types Provision for bad Book Book
Book balance Book balance Provision for bad debts
debts value value
99
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Provisio
Proporti n Amou Proporti Provision
Amount Amount Amount
on proporti nt on proportion
on
Receivables
provided for bad
359,9
debt by portfolio 455,705 100.00 8,400,7 447,304 100.00 8,663,64 351,276,9
1.84% 40,55 2.41%
based on the ,405.26 % 55.54 ,649.72 % 4.67 05.53
0.20
characteristics of
credit risk
359,9
455,705 100.00 8,400,7 447,304 100.00 8,663,64 351,276,9
Total 1.84% 40,55 2.41%
,405.26 % 55.54 ,649.72 % 4.67 05.53
0.20
Receivables that are individually significant in amount and provided for bad debt separately:
Inapplicable
Accounts receivable that are provided for bad debt based on aging analysis in aging portfolio:
In CNY
Ending balance
Aging Provision for bad and
Accounts receivable Provision rate
doubtful debts
Itemized based on those within 1 year
Subtotal of the items within
232,304,941.92 7,275,626.93 3.13%
1 year
1 to 2 years 5,920,384.64 592,038.46 10.00%
2 to 3 years 1,579,499.64 473,849.89 30.00%
Over 3 years 118,480.50 59,240.25 50.00%
Note to the basis for determining this portfolio:
Among the portfolio, accounts receivable that are provided for bad debt using percentage of balance:
Inappicable
Among the portfolio, accounts receivable that are provided for bad debt using other method
Name of portfolio Book balance Provision for Provision proportion %
bad debts
Portfolio of specific 215,782,098.56 - -
accounts
100
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Based on historical experience, the Groups receivables due from petty cash paid to employees, receivables due from
subsidiaries of the Company and accounts receivable for the sales between the last settlement date of the same
department store and the balance sheet date are with high recoverability and low possibility of incurring bad debt, as a
result, no bad debt provisions are provided for such receivables.
(2) Bad debt provision accrual, received or reversed in current period
Inapplicable
(3) Accounts receivable actually written off in current period
Inapplicable
(4) Accounts receivable due from the top five debtors of the Group are as follows:
Total accounts receivable due from the top five debtors of the Group in the current period is CNY25,177,673.93,
accounting for 5.52% of the total accounts receivable as at the end of the current period and the total provision for bad and
doubtful debts made as at the end of the current period is CNY1,258,883.7.
(5) Accounts receivable terminated for recognition due to transfer of financial assets
Inapplicable
(6) Amount of assets, liabilities formed by transfer of accounts receivable and continuing to be involved
Inapplicable
6. Advance payments
(1) Advance payments are presented based on ages
In CNY
Ending balance Opening balance
Age
Amount Proportion Amount Proportion
Within 1 year 26,018,487.94 76.24% 42,177,990.15 97.96%
1 to 2 years 8,110,104.53 23.76% 225,856.85 0.52%
2 to 3 years 0.00 0.00% 103,427.06 0.24%
Over 3 years 0.00 0.00% 547,368.00 1.27%
Total 34,128,592.47 -- 43,054,642.06 --
Note to the cause of failure in timely settlement of the advance payments with significant amount and age exceeding 1
year:
101
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Inapplicable
(2) Advance payment to the top five payees of the ending balance collected based on the payees of the advance
payment
The total amount of advance payment to the top five payees of the ending balance collected based on the payees of the
advance payment was CNY 23,032,749.15, taking 67.49% of the toal ending balance of the advance payment.
7. Interest receivable
(1) Classification of the interest receivable
Inapplicable
(2) Significant overdue interest
Inapplicable
8. Dividends receivable
(1) Dividends receivable
Inapplicable
(2) Dividends receivable with the significant age exceeding 1 year
Inapplicable
9. Other receivables
(1) Disclosure of classification of other receivables
In CNY
Ending balance Opening balance
Bad debt
Book Balance Book Balance Bad debt reserve
reserve
Categories Book Book
Provisi Provisio
Amou Propor Amou on value Amo Propor Amoun n value
nt tion nt propor unt tion t proportio
tion n
Other receivables 50,63 2,750, 47,887 44,3
99.76 99.73 2,803, 41,525,7
for which bad 8,538. 556.0 5.43% ,982.2 29,3 6.32%
% % 647.28 19.27
debt reserve has 20 0 0 66.5
102
FIYTA Holdings Ltd. 2015 Semi-Annual Report
been provided 5
based on the
portfolio
Other receivables
with insignificant
single amount 120,
120,0 120,0 100.0 120,00
and provision of 0.24% 0.00 000. 0.27% 100.00% 0.00
00.00 00.00 0% 0.00
bad debt reserve 00
on individual
basis
44,4
50,75 2,870, 47,887
100.0 49,3 100.0 2,923, 41,525,7
Total 8,538. 556.0 5.66% ,982.2 6.58%
0% 66.5 0% 647.28 19.27
20 0 0
5
Other receivables with individually significant amount and provision for bad and doubtful debts individually provided at the
end of the reporting period.
Inapplicable
Among the portfolio, other receivables that are provided for bad debt based on aging analysis
In CNY
Ending balance
Age
Other receivables Bad debt reserve Provision proportion
Itemized based on those within 1 year
Sub-total within 1 year 39,149,886.33 1,019,794.41 2.60%
1 to 2 years 1,642,592.77 164,259.28 10.00%
2 to 3 years 2,600,735.04 780,220.51 30.00%
Over 3 years 1,572,563.61 786,281.80 50.00%
Note to the basis for determining the portfolio:
Other receivables with provision for bad and doubtful debts based on the balance percentage method in the portfolio
Inapplicable
Other receivables with provision for bad and doubtful debts based on the other method in the portfolio:
In CNY
Ending balance
Age
Other receivables Bad debt reserve Provision proportion
Itemized based on those within 1 year
103
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Sub-total within 1 year 39,149,886.33 1,019,794.41 2.60%
1 to 2 years 1,642,592.77 164,259.28 10.00%
2 to 3 years 2,600,735.04 780,220.51 30.00%
Over 3 years 1,572,563.61 786,281.80 50.00%
3 to 4 years
4 to 5 years
Over 5 years
Total
Note to the basis for determining the portfolio:
Other receivables with provision for bad and doubtful debts based on the balance percentage method in the portfolio
Inapplicable
Other receivables with provision for bad and doubtful debts based on the other method in the portfolio:
Name of portfolio Book Balance Provision for bad debt Provision proportion %
Portfolio of specific 5,672,760.45 - -
accounts
Based on historical experience, the Groups receivables due from petty cash paid to employees, receivables due from
subsidiaries of the Company and accounts receivable for the sales between the last settlement date of the same
department store and the balance sheet date are with high recoverability and low possibility of incurring bad debt, as a
result, no bad debt provisions are provided for such receivables.
(2) Bad debt provision accrual, received or reversed in current period
Inapplicable
(3) Accounts receivable actually written off in current period
Inapplicable
(4) Classification of other receivables based on nature of payment
In CNY
Nature of Payment Ending book balance Opening book balance
Reserve 5,672,760.45 8,613,005.35
Deposit in security 11,405,614.23 5,710,249.11
Deposit in security 20,857,849.89 21,201,491.16
104
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Commodity promotion fee 4,536,484.62 5,021,765.71
Others 8,285,829.01 3,902,855.22
Total 50,758,538.20 44,449,366.55
(5) Other receivables of the ending balance due from the top five debtors of the Group are as
follows:
In CNY
Ending balance
% of the balance
of provision for
Names Nature Ending balance Age of other
bad and doubtful
receivables
debts
China Resources
Guarantee
(Shenzhen) Co., 2,698,794.00 1-2 years 5.32% 269,879.40
deposit
Ltd
Oris
International
Brand promotion
Trade 1,761,489.00 Within 1 year 3.47% 88,074.45
fee
(Shanghai)
Co., Ltd.
Shenzhen
Cash deposit 1,291,049.00 Within 1 year 2.54% 64,552.45
Airport Co., Ltd.
Shenzhen Yitian
Holiday Plaza Deposit 1,090,523.00 1-2 years 2.15% 109,052.30
Co,. Ltd.
Richemont Com Brand promotion
1,000,400.07 Within 1 year 1.97% 50,020.00
mercial Co., Ltd. fee
Total -- 7,842,255.07 -- 15.45% 581,578.60
(6) Accounts receivable involving government subsidy
Inapplicable
(7) Other receivables with recognition terminated due to transfer of financial assets
Inapplicable
(8) Amount of assets and liabilities formed through transfer of other receivables and continuing
to be involved
Inapplicable
105
FIYTA Holdings Ltd. 2015 Semi-Annual Report
10. Inventories
(1) Classification of inventories
In CNY
Ending balance Opening balance
Items Provision for Provision for
Book Balance Book value Book Balance Book value
price falling price falling
123,075,820.7 115,316,012.8 129,886,207. 122,126,399.
Raw materials 7,759,807.87 7,759,807.87
6 9 63 76
Products in 18,891,835.0 29,054,964.1 29,054,964.1
18,891,835.01 0.00 0.00
process 1 0 0
Commodities 1,977,676,500 15,692,619.5 1,961,983,88 1,998,359,37 15,749,714.5 1,982,609,66
in stock .73 2 1.21 4.96 0 0.46
2,119,644,156 23,452,427.3 2,096,191,72 2,157,300,54 23,509,522.3 2,133,791,02
Total
.50 9 9.11 6.69 7 4.32
(2) Provision for price falling of inventories
In CNY
Decrease in the reporting
Increase in the reporting period
period
Opening Ending
Items Provision
balance Reversal balance
Proportion Others Others
or Offset
Raw materials 7,759,807.87 7,759,807.87
Products in
0.00 0.00
process
Commodities 15,692,619.5
15,749,714.50 57,094.98
in stock 2
23,452,427.3
Total 23,509,522.37 57,094.98
9
(3) Note to the amount of capitalized borrowing costs involved in the ending balance of
inventories
Inapplicable
106
FIYTA Holdings Ltd. 2015 Semi-Annual Report
(4) Assets already completed but not yet settled formed in the construction contract at the end of
the reporting period
Inapplicable
11. Classified as held-for-sale assets
Inapplicable
12. Non-current assets due within a year
Inapplicable
13. Other current assets
In CNY
Items Ending balance Opening balance
Input VAT to be offset 5,186,955.05 8,356,400.02
Rent 3,034,937.50 4,270,819.57
Others 489,328.67 1,794,296.84
Total 8,711,221.22 14,421,516.43
14. Available-for-sale financial assets
(1) Description of available-for-sale financial assets
In CNY
Ending balance Opening balance
Items Book Impairment Book Impairment
Book value Book value
Balance reserve Balance reserve
Available-for-sale
385,000.00 300,000.00 85,000.00 385,000.00 300,000.00 85,000.00
equity instrument
Measured
385,000.00 300,000.00 85,000.00 385,000.00 300,000.00 85,000.00
based on cost
Total 385,000.00 300,000.00 85,000.00 385,000.00 300,000.00 85,000.00
(2) Available-for-sale financial assets measured based on fair value at the end of the reporting
period
Inapplicable
107
FIYTA Holdings Ltd. 2015 Semi-Annual Report
(3) Available-for-sale financial assets measured based on costs at the end of the reporting period
In CNY
Book Balance Impairment reserve Holding
proport
Cash
Beginni Decrea Beginni Decrea on of
Increas End of Increas End of dividen
Investe ng of se in ng of se in the
e in the the e in the the d in the
es the the the the shares
reportin reportin reportin reportin reportin
reportin reportin reportin reportin in the
g period g period g period g period g period
g period g period g period g period investe
es
Shenzh
en
CATIC
300,000 300,000 300,000 300,000
Culture 0.00 0.00 0.00 0.00 15.00% 0.00
.00 .00 .00 .00
Commu
nication
Co., Ltd
Xian
Tangch
eng 85,000. 85,000.
0.00 0.00 0.00 0.00 0.00 0.00 0.10% 0.00
Group 00 00
Co.,
Ltd.
385,000 385,000 300,000 300,000
Total 0.00 0.00 0.00 0.00 -- 0.00
.00 .00 .00 .00
(4) Movement of impairment of available-for-sale financial assets in the reporting period
In CNY
Classification of
Available-for-sale equity Available-for-sale liability
available-for-sale financial Total
instrument instrument
assets
Balance with provision for
impairment recognized at
300,000.00 0.00 0.00
the beginning of the
reporting period
Provision in the reporting
0.00 0.00 0.00
period
Where: transfer-in from
other comprehensive 0.00 0.00 0.00
income
108
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Decrease in the reporting
0.00 0.00 0.00
period
Where: reversal of rise of
0.00 0.00 0.00
the post fair value
Balance with provision for
impairment recognized at
300,000.00 0.00 0.00
the end of the reporting
period
(5) Note to serious falling or non-provisional falling of the fair value of available-for-sale equity
instruments without provision for impairment provided
Inapplicable
15. Held-to-maturity investments
(1) About held-to-maturity investments
Inapplicable
(2) Significant held-to-maturity investments at the end of the reporting period
Inapplicable
(3) Reclassified held-to-maturity investments in the current period
Inapplicable
16. Long term accounts receivable
(1) About long term accounts receivable
Inapplicable
(2) Long term accounts receivable with recognition terminated due to transfer of financial assets
Inapplicable
(3) Amount of assets or liabilities formed due to transfer of long term accounts receivable and
continuing to be involved in
Inapplicable
109
FIYTA Holdings Ltd. 2015 Semi-Annual Report
17. Long term equity investment
In CNY
Increase/ Decrease (+ / -) in the reporting period
Incom
Cash
e from Ending
dividen
equity Other balanc
d or
Openin invest compr e of
Additio Decrea Other profit Provisi Ending
Invest g ment ehensi the
nal se of equity annou on for balanc
ees balanc recogn ve Others provisi
invest invest move nced impair e
e ized income on for
ment ment ment for ment
under adjust impair
distribu
equity ment ment
tion
metho
d
I. Joint Venture
II. Associates
Shang
hai
Watch
Industr
42,389 42,639
y Co., 250,01
,759.9 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ,775.6 0.00
Ltd.(Sh 5.75
1 6
anghai
Watch
Industr
y)
42,389 42,639
Sub-tot 250,01
,759.9 ,775.6
al 5.75
1 6
42,389 42,639
250,01
Total ,759.9 ,775.6
5.75
1 6
18. Investment property
(1) nvestment property measured based on the cost method
In CNY
Construction in
Items Plant and buildings Land use right Total
progress
110
FIYTA Holdings Ltd. 2015 Semi-Annual Report
I. Original book value
1. Opening
340,029,020.44 340,029,020.44
balance
2. Increase in
the reporting period
(1) Outsourcing
(2) Transfer-in of
Inventories\fixed
assets\construction-i
n-progress
(3) Increase of
enterprise
consolidation
3. Decrease in the
reporting period
(1) Disposal
(2) Other
transfer-out
4. Ending
340,029,020.44 340,029,020.44
balance
II. Accumulative
depreciation and
accumulative
amortization
1. Opening
113,937,081.55 113,937,081.55
balance
2. Increase in
4,571,872.94 4,571,872.94
the reporting period
(1) Provision or
4,571,872.94 4,571,872.94
amortization
3. Decrease in
the reporting period
(1) Disposal
111
FIYTA Holdings Ltd. 2015 Semi-Annual Report
(2) Other
transfer-out
4, Ending
118,508,954.49 118,508,954.49
balance
III. Provision for
impairment
1. Opening
balance
2. Increase in
the reporting period
(1) Provision
3. Decrease in
the reporting period
(1) Disposal
(2) Other
transfer-out
4, Ending
balance
IV. Book value
1. Book value
at the end of the 221,520,065.95 221,520,065.95
period
2. Book value
at the beginning of 226,091,938.89 226,091,938.89
the period
(2) Investment property measured based on fair value
Inapplicable
(3) Investment property that does not have certificate for property right
Inapplicable
Note: The amount of depreciation in the current year was CNY 4,571,872.94 元。
112
FIYTA Holdings Ltd. 2015 Semi-Annual Report
19. Fixed assets
(1) About fixed assets
In CNY
Items Plant and buildings Total
I. Original book value
1. Opening balance 318,842,602.17 466,555,294.87
2. Increase in the reporting period 41,225,548.39 58,657,922.26
(1) Acquisition 41,225,548.39 58,657,922.26
(2) Transfer-in of Construction in
progress
(3) Increase of enterprise
consolidation
3. Decrease in the reporting
553,704.24
period
(1) Disposal or write-off 553,704.24
4, Ending balance 360,068,150.56 524,659,512.89
II. Accumulative depreciation
1. Opening balance 53,550,667.30 142,822,424.29
2. Increase in the reporting period 6,224,177.71 14,344,936.65
(1) Provision 6,224,177.71 14,344,936.65
3. Decrease in the reporting
378,191.54
period
(1) Disposal or write-off 378,191.54
4, Ending balance 59,774,845.01 156,789,169.40
III. Provision for impairment
1. Opening balance
2. Increase in the reporting period
(1) Provision
3. Decrease in the reporting
period
(1) Disposal or write-off
4, Ending balance
IV. Book value
1. Book value at the end of the
300,293,305.55 367,870,343.49
period
113
FIYTA Holdings Ltd. 2015 Semi-Annual Report
2. Book value at the beginning of
265,291,934.87 323,732,870.58
the period
(2) About temporarily idle fixed assets
Inapplicable
(3) Fixed assets rented through finance lease
Inapplicable
(4) Fixed assets leased through operating lease
Inapplicable
(5) Fixed assets that do not have certificate for property right
In CNY
Reason for not having certificate for
Item Book value
property rights
Office rooms for Harbin Branch 327,608.16 Defective in property right
Other Notes:
(1) About encumbrance on fixed assets
As at June 30, 2015, the plant and building with original book value of CNY 2,5815,331.97 (net book value amounting to
CNY 21,091,114.7) was taken as the collateral for the long term loan amounting to CNY 6,343,780.38.
(2) Cost of the Groups assets that are fully depreciated but still in use amounts to CNY 62,360,122.95 at the end of year
20.Construction in progress
(1)About construction in progress
In CNY
Ending balance Opening balance
Items Book Impairment Impairment
Book value Book Balance Book value
Balance reserve reserve
Clock & Watch
base in 99,930,48 99,930,489.2 51,283,233.5 51,283,233.5
Guangming New 9.20 0 3 3
District
114
FIYTA Holdings Ltd. 2015 Semi-Annual Report
FIYTA Tech.
Building Canopy 55,870.00 55,870.00 17,279.00 17,279.00
project
FIYTA Tech.
Building elevator
decoration & 281,044.0
281,044.00 88,751.00 88,751.00
sign-board 0
refurbishment
project
Xian FIYTA
Building pipeline
57,000.00 57,000.00 0.00
improvement
project
FIYTA Tech.
Building parking
70,512.82 70,512.82 0.00
lot improvement
project
100,394,9 100,394,916. 51,389,263.5 51,389,263.5
Total
16.02 02 3 3
(2) Movements of important construction-in-progress projects in the reporting period
In CNY
Includin
Transfe Proport
Accum g:
rred ion of Interest
Other ulative amount
Increas into the the capitali
decrea amount of the
Openin e in the fixed Ending project Project zation
Project Budget ses in involve capitali Fund
g reportin assets balanc put into progres rate in
s the d in zed source
balance g in the e applicat s the
reportin interest interest
period reportin ion in report
g year capitali in the
g the period
zation report
period budget
period
Clock
& Loan
Watch from
base in 300,000,0 51,283, 48,647, 99,930, 1,755,9 1,239,2 financia
0.00 0.00 33.31% 6.06%
Guang 00.00 233.53 255.67 489.20 57.46 80.88 l
ming instituti
New on
District
Total 300,000,0 51,283, 48,647, 0.00 0.00 99,930, -- -- 1,755,9 1,239,2 6.06% --
115
FIYTA Holdings Ltd. 2015 Semi-Annual Report
00.00 233.53 255.67 489.20 57.46 80.88
(3) Provision for impairment of construction in progress in the current period
Inapplicable
21. Engineering materials
Inapplicable
22. Disposal of fixed assets
Inapplicable
23. Productive biological asset
(1) Productive biological asset measured based on the cost method
Inapplicable
(2) Productive biological asset measured based on fair value
Inapplicable
24. Oil and gas assets
Inapplicable
25. Intangible assets
(1) About intangible assets
In CNY
Non-patent
Items Land use right Patent Right Software system Total
technology
I. Original book
value
1. Opening
34,854,239.40 4,631,161.08 49,032,714.34
balance
2. Increase
in the reporting 465,690.07 465,690.07
period
(1) Acquisited 465,690.07 465,690.07
116
FIYTA Holdings Ltd. 2015 Semi-Annual Report
(2) Internal R &
D
(3) Increase of
enterprise
consolidation
3. Decrease
in the reporting
period
(1) Disposal
4. Ending
34,854,239.40 5,096,851.15 49,498,404.41
balance
II. Accumulative
amortization
1. Opening
7,692,142.62 2,627,273.78 13,530,188.62
balance
2. Increase in the
365,783.52 317,678.63 689,122.13
reporting period
(1) Provision 365,783.52 317,678.63 689,122.13
3. Decrease in
the reporting
period
(1) Disposal
4. Ending
8,057,926.14 2,944,952.41 14,219,310.75
balance
III. Provision for
impairment
1. Opening
balance
2. Increase
in the reporting
period
(1)
Provision
3.
Decrease in the
reporting period
(1) Disposal
4. Ending
balance
117
FIYTA Holdings Ltd. 2015 Semi-Annual Report
IV. Book value
1. Book value at
the end of the 26,796,313.26 2,151,898.74 35,279,093.66
reporting period
2. Book value at
the beginning of
27,162,096.78 2,003,887.30 35,502,525.72
the reporting
period
The proportion of intangible assets formed not through the Companys internal research and development in the balance
of intangible assets was 0.00%.
(2) About the land use right that does not have certificate of title
Note: The amount amortized in the current year was CNY 689,122.13.
26. Development expenditure
Inapplicable
27. Goodwill
(1) Book value of goodwill
In CNY
Investee or
Opening Decrease in the reporting Ending
event forming Increase in the reporting period
balance period balance
goodwill
Lishan
Department 1,735,756.48 1,735,756.48
Store Co.
(2) Provision for impairment of goodwill
In CNY
Investee or
Opening Decrease in the reporting Ending
event forming Increase in the reporting period
balance period balance
goodwill
Lishan
Department 1,735,756.48 1,735,756.48
Store Co.
118
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Method for impairment testing and provision of reserve for impairment
HARMONY, one of the Companys 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.
28. Long-term expenses to be apportioned
In CNY
Amount
Increase in the
Items Opening balance amortized in the Other decrease Ending balance
reporting period
reporting period
Cost for making
59,982,521.32 46,360,047.44 27,746,684.42 78,595,884.34
special counters
Refurbishment 79,898,617.77 9,658,581.04 21,122,651.08 68,434,547.73
Endorsement fee 9,504,961.77 0.00 4,681,052.34 4,823,909.43
Others 347,465.17 250,008.76 111,135.82 486,338.11
Total 149,733,566.03 56,268,637.24 53,661,523.66 152,340,679.61
29. Deferred Income Tax Asset and Deferred Income Tax Liability
(1) Deferred income tax asset without offsetting
In CNY
Ending balance Opening balance
Items Deductable Deferred income tax Deductable Deferred income tax
temporary difference asset temporary difference asset
Provision for
34,723,738.93 8,603,779.15 35,096,814.32 7,934,522.40
impairment of assets
Unrealized profit
from the
356,831,290.21 87,938,146.58 321,704,912.25 79,169,123.81
intracompany
transactions
Offsetable loss 6,696,120.30 1,546,037.50 10,815,273.17 2,515,429.89
Deferred income 4,200,000.00 1,050,000.00 4,200,000.00 1,050,000.00
Total 402,451,149.44 99,137,963.23 371,816,999.74 90,669,076.10
119
FIYTA Holdings Ltd. 2015 Semi-Annual Report
(2) Deferred income tax liabilities without offsetting
In CNY
Ending balance Opening balance
Provisional Provisional
Items Deferred income tax Deferred income tax
difference in tax difference in tax
liability liability
payable payable
Deferred income tax
liability formed due to
difference between
793,580.61 130,940.80
the book value of the
assets and taxation
base
Total 793,580.61 130,940.80
(3) Deferred income tax asset or liabilities stated with net amount after offsetting
In CNY
Amount of mutual Amount mutually
Opening balance of
offsetting of the Ending balance of offset of the deferred
deferred income tax
Items deferred income tax deferred income tax income tax asset and
asset or liability after
asset and liabilities at asset or liability liability at the
offsetting
the end of period beginning of period
Deferred income tax
99,137,963.23 90,669,076.10
asset
Deferred income tax
130,940.80
liability
(4) Statement of deferred income tax asset not recognized
In CNY
Items Ending balance Opening balance
Deductable temporary difference 2,035,756.48 2,035,756.48
Total 2,035,756.48 2,035,756.48
(5) Unrecognized deferred income tax asset available for offsetting loss is going to expire in the
following years
Inapplicable
120
FIYTA Holdings Ltd. 2015 Semi-Annual Report
30. Other non-current assets
In CNY
Items Ending balance Opening balance
Advance payment for housing
31,500,000.00
construction
Total 31,500,000.00
31. Short-term loans
(1) Classification of short-term loans
In CNY
Items Ending balance Opening balance
Secured borrowings 582,601,517.52 436,445,000.00
Credit borrowing 560,000,000.00 553,000,000.00
Total 1,142,601,517.52 989,445,000.00
(2)Short-term loans overdue but still remaining outstanding
Other notes:
① There is no unpaid short-term loans that fall due.
② Refer to Note XII 5 (4) for details of guarantee between related-parties.
32. Financial liabilities measured based on fair value and the movements counted to the current
gain or loss
Inapplicable
33. Derivative financial liabilities
Inapplicable
34. Notes payable
Inapplicable
121
FIYTA Holdings Ltd. 2015 Semi-Annual Report
35. Accounts payable
(1) Statement of accounts payable
In CNY
Items Ending balance Opening balance
Payment for goods 177,959,113.43 136,579,035.50
Payment for materials 11,426,838.76 10,328,743.55
Warranty for the project 211,339.76 211,339.76
Total 189,597,291.95 147,119,118.81
(2) Significant accounts payable with age exceeding 1 year
In CNY
Cause of failure in repayment or
Items Ending balance
carry-over
FoshanShunde DaliangWeiye Watch
519,571.54 Invoice not issued
Co., Ltd.
Shenzhen Timepieces Supporting
137,030.15 Invoice not issued
Market Co., Ltd.
Total 656,601.69 --
36. Advances from customers
(1) Statement of advances from customers
In CNY
Items Ending balance Opening balance
Advances on sales 27,210,870.61 12,087,368.17
Total 27,210,870.61 12,087,368.17
(2) Significant advances from customers with age exceeding 1 year
Inapplicable
(3) Unfinished projects formed in the construction contracts but already settled at the end of the
reporting period
Inapplicable
122
FIYTA Holdings Ltd. 2015 Semi-Annual Report
37. Employee remuneration payable
(1) Statement of employee remuneration payable
In CNY
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
I. Short term
38,082,957.60 218,850,693.76 237,687,282.95 19,246,368.41
remuneration
II. Post-employment
welfare-defined 565,474.81 18,921,986.37 19,487,461.18 0.00
contribution plans
III. Dismissal welfare 0.00 517,054.37 517,054.37 0.00
Total 38,648,432.41 238,289,734.50 257,691,798.50 19,246,368.41
(2) Statement of short-term remuneration
In CNY
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
I. Salaries, bonus,
allowances and 37,656,100.67 194,612,196.23 213,371,645.14 18,896,651.76
subsidies
2. Staffs welfare 4,769,078.48 4,768,128.48 950.00
3. Social security
7,638,768.77 7,638,768.77
premium
Including:
medical insurance 6,491,614.15 6,491,614.15
premium
Work
465,272.82 465,272.82
injury insurance
681,881.80 681,881.80
Maternity Insurance
4. Public reserve for
6,974,841.30 6,974,841.30
housing
5. Trade union fund
and staff education 426,856.93 4,746,391.98 4,824,482.26 348,766.65
fund
8. Others 109,417.00 109,417.00
123
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Total 38,082,957.60 218,850,693.76 237,687,282.95 19,246,368.41
(3) Statement of defined contribution plan
In CNY
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
1. Basic endowment
17,194,151.37 17,194,151.37
insurance premium
2. Unemployment
979,480.34 979,480.34
insurance premium
3. Contribution to the
enterprise annuity 565,474.81 748,354.66 1,313,829.47
scheme
Total 565,474.81 18,921,986.37 19,487,461.18 0.00
38. Taxes payable
In CNY
Items Ending balance Opening balance
Value-added tax 45,658,832.71 39,838,385.65
Consumption tax 0.00 0.00
Business tax 570,723.61 795,720.42
Enterprise income tax 37,951,943.23 34,315,435.06
Individual income tax 1,123,628.32 745,837.07
Urban maintenance and construction
557,407.68 465,372.23
tax
Real estate tax 638,275.30 618,271.30
Education Surcharge 319,227.42 276,780.09
Stamp duty 281,894.20 252,083.51
Dyke protection surcharge 8,973.67 8,859.19
Others 184,356.82 286,025.54
Total 87,295,262.96 77,602,770.06
39. Interest payable
In CNY
Items Ending balance Opening balance
124
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Interest of corporate bond 6,720,000.00 16,800,000.00
Interest payable for short term loan 2,990,351.71 2,620,893.75
Total 9,710,351.71 19,420,893.75
Significant interest overdue but remaining outstanding:
Inapplicable
40. Dividend payable
In CNY
Items Ending balance Opening balance
Common stock dividends 39,276,787.00
Total 39,276,787.00
Other note: It is necessary to disclose the cause of failure in payment for the significant dividends payable which remain
outstanding for more than one year:
Inapplicable
41. Other payables
(1) Other payments stated based on nature of fund
In CNY
Items Ending balance Opening balance
Collateral and deposit 17,228,615.54 16,573,961.57
Due from shareholders 0.00 150,000,000.00
Refurbishment 2,309,702.88 4,712,095.11
Down payment 2,888,034.21 3,331,638.94
Fund for shop-front activities 6,153,983.84 6,075,167.30
Personal account payable 693,483.86 358,160.60
Others 12,548,526.87 7,523,876.93
Total 41,822,347.20 188,574,900.45
(2) Other payables in significant amount and with aging over 1 year
In CNY
Cause of failure in repayment or
Items Ending balance
carry-over
Shenzhen Tencent Computer System
4,693,429.16 Rent deposit
Co., Ltd.
125
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Oracle R&D Center (Shenzhen)
811,590.00 Rent deposit
Limited
Wu Dongmei 700,000.00 Rent deposit
China Tenth Metallurgy Group
690,000.00 Deposit of project quality
Limited Corporation
Shenzhen Yitianxun Technology Co.,
505,657.80 Rent deposit
Ltd.
Shenzhen Xiangya Food Co., Ltd. 471,760.00 Rent deposit
Shenzhen Avic Real Estate Co., Ltd 424,800.00 Rent deposit
Wen Jianbo 416,700.00 Rent deposit
Shenzhen Good Family Sports-Ware
414,630.00 Rent deposit
Chain Limited
Shenzhen Honestar Electronic
375,144.00 Rent deposit
Limited
China Merchants Bank Shenzhen
349,692.00 Rent deposit
Sci-tech Park Branch
Shenzhen Uni-phone Self-service
Kara-Ok Entertainment Supermarket 334,880.00 Rent deposit
Limited
Shenzhen Oriental Boiler Control
318,491.60 Rent deposit
Co., Ltd.
Shenzhen Yongantang Chain
301,644.00 Rent deposit
Pharmacy Limited
Shenzhen CATIC City Investment
244,068.00 Rent deposit
Co., Ltd.
Broadway Technology (Shenzhen)
243,547.28 Rent deposit
Co., Ltd.
Shenzhen AvicChangtai Investment
221,712.00 Rent deposit
Development. Co., Ltd
Shenzhen Hangjian Engineering
208,304.00 Rent deposit
Cost Consultation Co., Ltd
Total 11,726,049.84 --
42. Liabilities classified as held-for-sale liabilities
Inapplicable
126
FIYTA Holdings Ltd. 2015 Semi-Annual Report
43. Non-current liabilities due within one year
Inapplicable
44. Other current liabilities
In CNY
Items Ending balance Opening balance
Accrued expenses 6,790,760.39 5,482,521.27
Total 6,790,760.39 5,482,521.27
45. Long term loans
(1) Classification of long term loans
In CNY
Items Ending balance Opening balance
Mortgage loan 6,343,780.38 6,255,497.65
Secured borrowings 169,681,928.00 133,696,928.00
Total 176,025,708.38 139,952,425.65
Note to classification of long term loans:
Other notes, including the interest rate interval:
① There was no long term loan already due but still remaining outstanding.
② As stated in Note VII.19, the property with the book cost of CNY 2,5815,331.97 (net value of CNY 21,091,114.70) was
used as the collateral for the long term loan.
③ For the detail about the guarantee to related parties, refer to Note XII.5(4).
46. Liabilities Payable
(1) Bonds payable
In CNY
Items Ending balance Opening balance
12 FIYTA Bond 399,295,040.88 398,767,929.40
Total 399,295,040.88 398,767,929.40
127
FIYTA Holdings Ltd. 2015 Semi-Annual Report
(2) Increase/Decrease of bonds payable (excluding other financial instruments classified as
financial liabilities, such as preferred shares, perpetual bonds, etc.)
In CNY
12 400,00 398,76 10,080 20,160 399,29
2013-2 3+2 527,11
FIYTA 100.00 0,000. 7,929. ,000.0 ,000.0 5,040.
-27 years 1.44
Bond 00 40 0 0 84
400,00 398,76 10,080 20,160 399,29
527,11
Total -- -- -- 0,000. 7,929. ,000.0 ,000.0 5,040.
1.44
00 40 0 0 84
(3) Note to the conditions and time of share conversion of convertible company bonds
Inapplicable
(4) Note to other financial instruments classified as financial liabilities
Inapplicable
47. Long term accounts payable
(1) Long term accounts payable stated based on the nature
Inapplicable
48. Long term payroll payable
(1) Statement of long term payroll payable
Inapplicable
(2) Change in defined benefit plan
Inapplicable
49. Special accounts payable
Inapplicable
50. Predicted liabilities
Inapplicable
128
FIYTA Holdings Ltd. 2015 Semi-Annual Report
51. Deferred income
In CNY
Increase in the Decrease in the Reasons of
Items Opening balance Ending balance
reporting period reporting period formation
Government
4,200,000.00 0.00 0.00 4,200,000.00
subsidy
Total 4,200,000.00 0.00 0.00 4,200,000.00 --
Items involving government subsidies:
In CNY
Amount
Amount of
counted to the
newly added Asset related/
Opening non-operating Other Ending
Liabilities subsidies in income-relate
balance income in the changes balance
the reporting d
reporting
period
period
Technical
study for civil
aviation Income
1,200,000.00 1,200,000.00
airborne related
cockpit
clock①
Special fund
for Shenzhen
industrial
Income
design 3,000,000.00 3,000,000.00
related
industry
development
②
Total 4,200,000.00 4,200,000.00 --
Other notes:
For the foresaid subsidy projects, relevant documents did not explicitly stipulate subsidy objects. Those projects wont
form
long-term assets in future periods, so the Group recognizes it as income related government grant.
Note ①:Special fund was obtained from the First Special Fund for Technology Innovation Scheming Technological
Development Project (Advanced Equipment Manufacturing) of 2013 Municipal Technology Research and Development
Fund by Technological Innovation Commission of Shenzhen Municipality and Finance Commission of Shenzhen
Municipality according to Administrative Measures for Shenzhen Technology Research and Development and
129
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Administrative Measures for Shenzhen Technology Scheming Project.
Note ②：Special fund for Shenzhen industrial design industry development was obtained according to the Operating
Specification for Affirmation and Fund Plan of Shenzhen Industrial Design Center(2013) No.227 which is jointly issued by
Development and Reform Commission of Shenzhen Municipality, Economy, Trade and Information Commission of
Shenzhen Municipality,
Technological Innovation Commission of Shenzhen Municipality and Finance Commission of Shenzhen Municipality,
52. Other non-current liabilities
Inapplicable
53. Capital stock
In CNY
Increase/ Decrease (+ / -) as of the reporting period
Shares
Opening Ending
Bonus converted
balance New issuing Others Sub-total balance
shares from
reserve
Total 392,767,87 392,767,87
Shares 0.00 0.00
54. Other equity instruments
(1) Basic information about the other financial instruments, including outstanding preferred
shares, perpetual shares, etc. at the end of the reporting period.
Inapplicable
(2) Movements of the other financial instruments, including outstanding preferred shares,
perpetual shares, etc. at the end of the reporting period.
Inapplicable
55. Capital reserve
In CNY
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
Capital premium
511,015,832.95 511,015,832.95
(capital stock
130
FIYTA Holdings Ltd. 2015 Semi-Annual Report
premium)
Other capital reserve 14,492,448.65 14,492,448.65
Total 525,508,281.60 525,508,281.60
Other note: note to the movements, including increase/decrease of the capital reserve:
Inapplicable
56. Treasury shares
Inapplicable
57. Other comprehensive income
In CNY
Amount incurred in the reporting period
Less: Gain
or loss
counted to
Amount Attributa
the other Attributa
incurred ble to
comprehen Less: ble to Ending
Opening before the
Items sive Income minority balanc
balance income parent
income and tax sharehol e
tax in the compan
transferred expense ders
reporting y after
into gain or after tax
period tax
loss in the
current
period
II. Other comprehensive income -10,44
-17,609,2 7,162,79 7,163,17
which cannot be re-classified 0.00 0.00 -385.49 6,088.
65.22 0.77 6.26
into the gain or loss in future 96
Conversion margin of -10,44
-17,609,2 7,162,79 7,163,17
the financial statements in 0.00 0.00 -385.49 6,088.
65.22 0.77 6.26
foreign currency 96
-10,44
-17,609,2 7,162,79 7,163,17
Other comprehensive income 0.00 0.00 -385.49 6,088.
65.22 0.77 6.26
96
Other note: Adjustment of the initially recognized amount of the valid part of the gain/loss of cash-flow hedge converted
into arbitraged items:
Note: Net after-tax other comprehensive income incurred in current period is CNY -9,354,879.56. Amongst, the amount
131
FIYTA Holdings Ltd. 2015 Semi-Annual Report
attribute to parent company shareholders is CNY7,162,790.77, and amount attribute to minority shareholders is
CNY-385.49.
58. Special reserve
Inapplicable
59. Surplus reserve
In CNY
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
Statutory surplus
103,930,572.89 103,930,572.89
reserve
Discretionary surplus
61,984,894.00 61,984,894.00
reserve
Total 165,915,466.89 165,915,466.89
60. Retained profit
In CNY
Items Reporting Period Previous period
Retained earnings at the end of the previous
566,819,577.37 469,706,600.67
period before adjustment:
Retained earnings at the beginning of the
566,819,577.37 469,706,600.67
reporting period after adjustment
Plus: Net profit attributable to the parent
73,109,419.73 88,283,873.10
companys owners
Dividend of ordinary shares payable 39,276,787.00 39,276,787.00
Retained earnings at the end of the
600,652,210.10 518,713,686.77
reporting period
61. Operating revenue and operating cost
In CNY
Amount incurred in the reporting period Amount incurred in the previous period
Items
Income Cost Income Cost
Principal business 1,673,028,130.56 1,036,384,680.04 1,628,150,096.74 1,033,916,901.04
Other business 10,765,117.03 1,597,041.31 14,464,694.23 4,143,808.73
Total 1,683,793,247.59 1,037,981,721.35 1,642,614,790.97 1,038,060,709.77
132
FIYTA Holdings Ltd. 2015 Semi-Annual Report
62. Business tax and surcharges
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Consumption tax 2,674,030.74 2,612,300.80
Business tax 0.00 43,350.43
Urban maintenance and construction
6,808,734.25 4,168,538.63
tax
Education Surcharge 4,757,348.20 2,929,387.82
Resource tax 0.00 0.00
Others 838,503.36 561,139.36
Total 15,078,616.55 10,314,717.04
63.Sales costs
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Salary 129,998,396.21 109,456,820.30
Long-term expenses to be
48,078,068.57 44,261,587.02
apportioned
Market promotion 37,009,378.62 35,445,353.18
Rental fees 32,849,091.00 40,076,786.07
Advertisement 29,778,834.08 23,862,707.42
Shopping mall expenses 25,749,987.82 23,359,757.65
labor insurance premium 19,265,374.37 15,913,522.74
Packaging 7,984,140.77 5,848,804.57
Depreciation 7,141,527.36 5,502,980.00
Water and electricity 7,040,330.27 6,319,352.09
Others 41,402,098.85 39,713,649.35
Total 386,297,227.92 349,761,320.39
64.Administrative expenses
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
133
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Salary 45,287,133.52 46,069,762.57
R & D expenses 18,788,221.52 7,024,738.13
labor insurance premium 5,067,404.28 4,287,800.15
Depreciation 4,068,125.00 3,764,328.63
Business travel 3,541,532.40 3,718,879.68
Trade union budget 2,294,414.08 2,031,932.61
Office expenses 2,110,915.63 1,541,236.25
Commission to agents 1,966,345.00 1,043,725.53
Training expenses 1,677,155.87 1,189,302.83
Public reserve for housing 1,533,670.91 1,429,441.16
Others 13,796,258.44 12,751,044.85
Total 100,131,176.65 84,852,192.39
65. Financial expenses
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Interest payment 46,490,128.21 47,759,283.27
Less: Interest capitalized 1,239,280.88 152,041.70
Less: interest income 885,212.57 798,950.68
Exchange losses 877.53 496,600.58
Service charge and others 6,523,274.50 6,891,787.02
Total 50,889,786.79 54,196,678.49
66. Assets impairment loss
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
I. Loss from bad debts -315,964.63 -147,985.53
II. Loss from price falling of
-57,094.98 2,755,108.79
inventories
Total -373,059.61 2,607,123.26
67. Income from change in fair value
Inapplicable
134
FIYTA Holdings Ltd. 2015 Semi-Annual Report
68. Income from investment
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Income from long term equity investment
250,015.75 -504,563.21
based on equity method
Total 250,015.75 -504,563.21
69. Non-operating income
In CNY
Amount counted to the
Amount incurred in the Amount incurred in the
Items current non-operating gain
reporting period previous period
and loss
Total income from disposal
69,750.00 37,755.19 69,750.00
of non-current asset
Where: income from
69,750.00 69,750.00 69,750.00
disposal of fixed assets
Government subsidy 1,603,451.99 1,726,500.00 1,603,451.99
Disposal of payables
108,732.73 775,665.30 108,732.73
impossible to pay
Others 67,900.55 650,062.08 67,900.55
Total 1,849,835.27 3,189,982.57 1,849,835.27
Government subsidy counted to the current gain or loss:
In CNY
Amount incurred in the Amount incurred in the Asset related/
Subsidy items
reporting period previous period income-related
th
Honorable Mension of 15
Chinese Patent Industrial 100,000.00 Income related
Design Award (Note①)
Prize of 2013 Guangdong
Provincial Sci-Tech Award 50,000.00 Income related
(Note②)
Subsidy for brand
development project (Note 900,000.00 Income related
③)
Government subsidy from 431,491.63 Income related
135
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Shenzhen Watch and
Clock Association for Basel
Exhibition as received
(Note④)
Project subsidizing from
Shenzhen Association of
Staf and Workers 121,960.36 Income related
Education and Vocational
Training (Note⑤)
Second-batch subsidy fund
of 2013 economic
development fund of 100,000.00 Income related
Nanshan District Bureau of
Finance
2013 Specific subsidy fund
for self-innovation industry
531,500.00 Income related
development of Nanshan
District
st
2014 1 Batck Overseas
Trademark Registration
Application Subsidy of
70,000.00 Income related
Market Supervision
Administration of
Shenzhen Municipality
Subsidy for brand
development project of 1,000,000.00 Income related
Shenzhen
Government subsidy paid
by Shenzhen Watch and
20,000.00 Income related
Clock Association for Basel
Exhibition
Subsidy for patent project 5,000.00 Income related
Total 1,603,451.99 1,726,500.00 --
Other Notes:
th
Note ①: Prize of Honorable Mension obtained according to the Decision on 15 Chinese Patent Industrial Design Award
issued by State Intellectual Property Office;
Note ②: Prize of 2013 Guangdong Provincial Sci-Tech Award obtained according to Bulletin of Peoples Government of
Guangdong Province on Awarding 2013 Science & Technology Award of Guangdong Province YUE FU (2014) No. 18
issued by Peoples Government of Guangdong Province;
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
Note ③: It is a specific fund for brand development of Economy, Trade and Information Commission of Shenzhen
Municipality obtained by Shenzhen Harmony World Watches Center Co., Ltd., one of the Companys subsidiaries;
Note ④: It is a Government subsidy from Shenzhen Watch and Clock Association for Basel Exhibition received by FIYTA
Sales Company, one of the Companys subsidiaries;
Note ⑤: It is a subsidy from Shenzhen Association of Staf and Workers Education and Vocational Training by FIYTA
Technology Co., Ltd., one of the Companys subsidiaries.
70. Non-operating expenses
In CNY
Amount counted to the
Amount incurred in the Amount incurred in the
Items current non-operating gain
reporting period previous period
and loss
Total loss from disposal of
35,549.22 31,046.62 35,549.22
non-current assets
including: loss from
35,549.22 31,046.62 35,549.22
disposal of fixed assets
Outward donation 300,000.00 150,000.00 300,000.00
Others 9,851.37 369,594.26 9,851.37
Total 345,400.59 550,640.88 345,400.59
71. Income tax expense
(1) Statement of income tax expense
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Income tax expenses in the report
31,859,444.11 24,868,386.04
period
Deferred income tax expenses -9,597,783.88 -8,294,858.73
Total 22,261,660.23 16,573,527.31
(2) Process of adjustment of accounting profit and income tax expense
In CNY
Items Amount incurred in the reporting period
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
Total profit 95,542,228.37
Income tax expense calculated based on the
23,885,557.10
statutory/applicable tax rate
Influence of different tax rates upon subsidiaries -3,027,712.50
Influence of adjustment of income tax to prior periods 1,103,024.56
Influence of non-taxable income 0.00
Influence of nondeductible costs, expenses and losses 1,505,821.61
Influence from use of deductible loss of unrecognized
0.00
deferred income tax asset of prior periods
Influence from deductable temporary difference or
deductible loss of unrecognized deferred income tax 0.00
asset of the current period
Gain or loss from joint venture and associates calculated
-62,503.94
based on the equity method
Influence of balance of the initial deferred income tax due
-777,526.59
to change of tax rate
Taxation influence from additional deduction of R&D
-365,000.00
expenses (stated with “-”)
Income tax expense 22,261,660.23
72. Other comprehensive income
For the detail, refer to Note VII.57.
73. Cash flow statement items
(1) Other operation activity related cash as received
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Commodity promotion fee 9,333,292.34 7,525,003.95
Government subsidy 1,603,451.99 1,726,500.00
Deposit in security 1,182,075.52 1,169,850.00
Interest income 885,212.57 798,950.68
Reserve 203,646.34 6,000.00
Others 1,512,829.43 4,069,750.36
Total 14,720,508.19 15,296,054.99
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(2) Other operation activity related cash as paid
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Rental fees 34,001,507.19 41,108,746.25
Market promotion 28,278,326.28 24,561,443.68
Advertisement 27,118,834.08 18,622,707.42
Shopping mall expenses 25,749,987.82 23,359,757.65
R & D expenses 16,624,631.81 5,606,420.13
Business travel 9,281,083.68 6,741,403.76
Packaging 7,984,140.77 5,848,804.57
Water and electricity 7,361,322.68 6,559,696.66
Office expenses 6,997,934.01 4,726,973.59
Transportation 4,472,557.44 3,539,130.41
Business entertainment 2,687,914.43 1,863,620.09
Meeting expenses + 2,407,668.26 2,213,714.36
Post and communications 2,347,462.22 1,873,003.47
Commission to agents 2,210,528.68 2,237,679.28
Consultation costs 1,607,714.89 38,216.52
Others 24,600,923.26 11,639,596.05
Total 203,732,537.50 160,540,913.89
(3) Other investment activity related cash as received
Inapplicable
(4) Other investment activity related cash as paid
Inapplicable
(5) Other financial activity related cash as received
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Amount financed with letter of credit 13,500,000.00
Total 13,500,000.00
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(6) Other financial activity related cash as paid
In CNY
Amount incurred in the reporting Amount incurred in the previous
Items
period period
Repayment of borrowings from
100,000,000.00 0.00
related parties
Bank financing expenses 420,000.00 864,375.00
Credit guarantee fee 0.00 0.00
Others 31,008.00 31,008.00
Payment for the capital contributed
0.00 1,400,000.00
by minority shareholders
Total 100,451,008.00 2,295,383.00
74. Supplemental information of cash flow statement
(1) Supplemental information of cash flow statement
In CNY
Supplemental information Amount in the reporting period Amount in the previous period
1. Net cash flows arising from
adjustment of net profit into operating -- --
activities
Net profit 73,280,568.14 88,383,300.80
Plus: Reserve for impairment of assets -373,059.61 2,607,123.26
Depreciation of fixed assets, depletion
of oil and gas asset, depreciation 18,916,809.59 16,076,871.28
of productive biological asset
Amortization of intangible assets 689,122.13 720,075.39
Long-term expenses to be apportioned 53,661,523.66 50,918,783.48
Loss (income is stated in “-“) from
disposal of fixed assets, intangible -34,200.78 -6,708.57
assets and other long term assets
Financial expenses (income is stated
46,490,128.21 47,607,241.57
with “-“)
Investment loss (income is stated with
-250,015.75 504,563.21
“-“)
Decrease of deferred income tax asset
-8,468,887.13 -8,708,125.05
(Increase is stated with “－”)
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Increase of deferred income tax asset
130,940.80
(Decrease is stated with “-“)
Decrease of inventories (Increase is
37,599,295.21 40,945,763.21
stated with “-“)
Decrease of operative items receivable
-110,237,568.24 -89,756,578.05
(Increase is stated with “-“)
Increase of operative items payable
60,849,122.33 -11,293,631.14
(Decrease is stated with “-“)
Net cash flow arising from operating
172,253,778.56 137,998,679.39
activities
2. Significant investment and
fund-raising activities with no cash -- --
income and expenses involved:
3. Net change in cash and cash
-- --
equivalents:
Ending cash balance 158,879,732.91 159,843,756.99
Less: Opening cash balance 114,880,070.54 107,663,110.74
Net increase in cash and cash
43,999,662.37 52,180,646.25
equivalents
(2) Net cash paid for acquisitoin of subsidiaries in the reporting period
Inapplicable
(3) Net cash received from disposal of subsidiaries in the reporting period
Inapplicable
(4) Composition of cash and cash equivalent
In CNY
Items Ending balance Opening balance
I. Cash 158,879,732.91 114,880,070.54
Incl: Cash in hand 403,915.95 338,694.81
Bank deposit available for
158,470,296.10 114,319,146.38
payment at any time
Other monetary fund used for
5,520.86 222,229.35
payment at any time
III. Ending balance of cash and cash
158,879,732.91 114,880,070.54
equivalents
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75. Note to the items of the statement of change in owners’ euiqty
Inapplicable
76. Assets with ownership or use right restricted
In CNY
Items Book value at the end of the period Cause of being restricted
Monetary fund 1,575,000.00 Deposit for L/G
Fixed assets 21,091,114.70 Security guarantees
Total 22,666,114.70 --
77. Foreign currency monetary items
(1) Foreign currency monetary items
In CNY
Ending balance of foreign Ending balance of
Items Conversion rate
currency Renminbi converted
Monetary fund -- -- 10,273,228.30
Including: USD 171,713.40 6.1136 1,049,787.04
Euro 24.45 6.8699 167.97
HKD 5,913,134.42 0.7886 4,663,097.89
CHF 680,755.28 6.6987 4,560,175.39
Accounts receivable -- -- 9,810,233.22
HKD 12,030,521.43 0.7886 9,487,269.20
CHF 48,212.94 6.6987 322,964.02
Advance to suppliers -- 27,650,290.43
Including: HKD 12,913,140.25 0.7886 10,183,302.40
CHF 2,607,519.07 6.6987 17,466,988.02
Other receivables -- 801,280.20
Including: USD 32,879.00 6.1136 201,009.05
Euro 193.52 6.8699 1,329.46
HKD 727,414.09 0.7886 573,638.75
CHF 3,777.29 6.6987 25,302.93
Accounts payable -- 10,358,909.80
Including: HKD 6,743,919.02 0.7886 5,318,254.54
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CHF 752,482.61 6.6987 5,040,655.26
Accounts Received in
-- 4,855.17
Advance
Including: HKD 6,156.70 0.7886 4,855.17
Other payables -- 1,926,935.18
Including: HKD 1,654,333.97 0.7886 1,304,607.77
USD 1,000.00 6.1136 6,113.60
CHF 91,990.06 6.6987 616,213.81
Short-term Loan -- 32,101,517.52
Including: HKD 40,696,650.00 0.7886 32,101,517.52
Long-term Loan -- -- 124,663,780.38
HKD 150,669,710.80 0.7886 118,848,267.88
CHF 875,000.00 6.6987 5,815,512.50
(2) Note to overseas operating entities, including important overseas operating entities, wich
should be disclosed about its principal business place, function currency for bookkeeping and
basis for the choice. In case of any change in function currency, the cause should be disclosed.
For the principal business place of important overseas operating entities and the function currencies for bookkeeping,
refer to Note V.4.
78. Hedging
Inapplicable
79. Others
Inapplicable
VIII. Change in consolidation scope
1. Consolidation of enterprises not under common control
(1) Consolidation of enterprises not under common control occurred in the current period
Inapplicable
(2) Consolidation cost and goodwill
Inapplicable
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
(3) Distinguishable assets/liabilities of the acquiree as at the date of acquisition
Inapplicable
(4) Gain or loss from remeasurement of the equity held before the date of acquisition based on
the fair value
Inapplicable
(5) Note to failure in reasonable determination of consolidation consideration or the fair value of
the fair value of distinguishable assets and liabilities of the acquiree as at the date of acquisiton
or the very period of consolidation.
Inapplicable
(6) Other notes
Inapplicable
2. Consolidation of enterprises under the common control.
(1) Consolidation of enterprises under common control incurred in the reporting period
Inapplicable
(2) Consolidation cost
Inapplicable
(3) Book value of the assets and liabilities of the consolidatee as at the date of consolidation
Inapplicable
3. Counter purchase
Inapplicable
4. Disposal of subsidiaries
Inapplicable
5. Change in consolidation scope due to other cause
Inapplicable
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
6. Others
Inapplicable
IX. Equity in other entities
1. Equity in subsidiaries
(1) Compostion of enterprise group
Main business Place of Nature of Shareholding ratio Way of
Subsidiaries
location registration business Directr Indirect acquisition
Shenzhen
Harmony
World Establishment
Shenzhen Shenzhen Commerce 100.00%
Watches or investment
Center Co.,
Ltd.
Manufacture Establishment
Shenzhen Shenzhen Manufacture 90.00% 10.00%
Co. or investment
FIYTA (Hong Establishment
Hong Kong Hong Kong Commerce 100.00%
Kong) Limited or investment
Establishment
Station 68 Hong Kong Hong Kong Commerce 60.00%
or investment
Harbin Establishment
Harbin Harbin Commerce 25.00% 75.00%
Company or investment
HengliandaCo Establishment
Beijing Beijing Commerce 100.00%
mpany or investment
Technology Establishment
Shenzhen Shenzhen Manufacture 100.00%
Company or investment
Trading Establishment
Shenzhen Shenzhen Commerce 100.00%
Company or investment
Culture Establishment
Shenzhen Shenzhen Commerce 100.00%
Company or investment
Emile
Establishment
Shenzhen Shenzhen Shenzhen Commerce 100.00%
or investment
Company
World
Establishment
Watches Hong Kong Hong Kong Commerce 100.00%
or investment
International
145
FIYTA Holdings Ltd. 2015 Semi-Annual Report
FIYTA Sales Establishment
Shenzhen Shenzhen Commerce 100.00%
Company or investment
Consolidation
of enterprises
Hengdarui
Shenyang Shenyang Commerce 100.00% under
Company
common
control
Consolidation
Lishan of enterprises
Department Kunming Kunming Commerce 100.00% not under
Store Co. common
control
Consolidation
of enterprises
Swiss
Switzerland Switzerland Commerce 100.00% not under
Company
common
control
Nature Art
Hong Kong Hong Kong Commerce ①
Limited
Baoding
Hong Kong Hong Kong Commerce ①
Company
Note to the shareholding proportion of subsidiaries different from voting proportion:
Basis for holding an half or less than an half of votes but stilling controlling an investee and holding an half or more than an
half of votes but not controlling an investee:
For an important structured entity incorporated in consolidation scope, basis for control:
Basis for determining company as an agent or trustor:
Other note:
①According to the equity trust agreement signed by and between Station 68 a subsidiary of FIYTA Hong Kong and the
trustee of Protop Limited on 10 December 2009, Station 68, as the trustor, owns shares, stock rights and related rights of
Nature Art Limited and Protop Limited, and both parties agree that trustee may transfer its right anytime according to the
instructions of trustor. Therefore, Station 68 owns the control right of Nature Art Limited and Protop Limited, and include
them into its scope of consolidation.
(2) Important non-wholly-owned subsidiaries
Inapplicable
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
(3) Key financial information of important non-wholly-owned subsidiaries
Inapplicable
(4) Significant restriction on use of enterprise group’s assets and paying off the enterprise
group’s liabilities
Inapplicable
(5) Financial support or other support provided to the structured entities incorporated in the
scope of consolidated financial statements
Inapplicable
2. Transaction with a subsidiary with the share of the owner’s equity changed but still under
control
(1) Note to the change in the share of the owner;s equity of a subsidiary
Inapplicable
(2) Influence of transaction on miniority shareholders’ equity and owner’s equity attributable to
the parent company
Inapplicable
3. Equity in joint venture arrangement or associates
(1) Important joint ventures or associates
Shareholding proportion Accounting
treatment
Name of joint Principal
Place of Business method for
venture or business
registration nature Direct Indirect investment in
associate location
joint ventures
or associates
① Associate
Shanghai
Watch Shanghai Shanghai Manufacture 25.00% Equity method
Industry
(2) Key financial information of important joint ventures
Inapplicable
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
(3) Key financial information of important associates
In CNY
Ending balance/amount incurred in Opening balance/amount incurred in
the reporting period the previous period
Current assets 88,846,063.57 88,551,483.42
Non-current assets 21,906,384.63 22,504,083.78
Total assets 110,752,448.20 111,055,567.20
Current liabilities 17,010,985.08 18,718,641.86
Non-current liabilities 0.00 0.00
Total Liabilities 17,010,985.08 18,718,641.86
Net assets 93,741,463.12 92,336,925.34
Minority shareholders equity 0.00 0.00
Owners equity attributable to the
0.00 0.00
parent company
Share of net assets calculated based
23,435,365.78 22,622,546.71
on the shareholding proportion
Adjustment: 0.00 0.00
-- Goodwill 0.00 0.00
-- Profit unrealized in the internal
0.00 0.00
trading
-- Others 0.00 0.00
Book value of the equity investment
42,639,775.66 42,389,759.91
in associates
Revenues 46,811,242.00 52,972,924.33
Net profit 1,220,537.78 1,076,068.67
Other comprehensive income 0.00 0.00
Total comprehensive income 1,220,537.78 1,076,068.67
Dividends received from associates
0.00 0.00
in the current year
(4) Financial information summary of unimportant joint ventures and associates
In CNY
Ending balance/amount incurred in Opening balance/amount incurred in
the reporting period the previous period
Joint ventures: -- --
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
Total of the following items calculated
according to the shareholding -- --
proportion
Associates: -- --
Total of the following items calculated
according to the shareholding -- --
proportion
(5) Note to significant restriction on the competence of a joint venture or an associate in
transferring funds to the Company
Inapplicable
(6) Excessive loss incurred to a joint venture or an associate
Inapplicable
(7) Unrecognized commitment in connection with investment in a joint venture
Inapplicable
(8) Contingent liabilities in connection with investment in joint ventures or associates
Inapplicable
4. Important joint operation
Inapplicable
5. Equity in the structured entities not incorporated in the consolidated financial statements
Inapplicable
6. Others
Inapplicable
X. Financial instruments and risk management
The Group has disclosed details of financial instruments in related notes. Risks related to those financial instruments and
risk management policies adopted to reduce those risks are described as below. The Group management layer manages
and supervises the risk exposure to ensure risks are controlled within limited range.
1. Risk management goals and policies
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
The goal of risk management is to keep proper balance between risk and profit, to reduce negative influence of financial
risk to financial performance of the Group. Based on the goal, the Group has formulated risk management policies to
identify and analyze risks the Group faces, set proper acceptable risk level and design relevant internal control procedures,
to supervise risk level. The Group will regularly review those risk management policies and relevant internal control
system, to adapt to market situation and change of operating activities. The internal audit department of the Group will
also regularly or randomly check whether the execution of internal control system complies with risk management policies.
Main risks financial instruments of the Group may lead to include credit risks, liquidity risk, market risk, etc.
(1)Credit risk
Credit risk refers to the risk of financial loss of the Group caused due to default of contract obligation of transaction
counterparty.
The Group manages credit risk by portfolio. Credit risk mainly arises from bank deposit and accounts receivable.
Bank deposit of the Group is mainly in state-owned banks and other large and medium listed banks. There are no
significant credit risks of estimated bank deposits.
As for accounts receivable, the Group sets relevant policies to control credit risk exposure. Based on the financial status of
debtor, external rating, guarantee possibility, credit record gained from the third party and other factors such as current
market status, the Group evaluates credit qualification of debtor and set corresponding debt limit and credit period. The
Group will regularly supervise credit record of debtor. For debtor with bad credit record, the Group will ensure the whole
credit risk of the Group within controllable range in the forms of written reminder letter, reducing credit period and
cancelling credit period.
The biggest credit risk exposure undertaken by the Group is carrying amount of each financial asset in balance sheet. The
Group sets guarantees to any other credit risks that the Group may bear.
Amount accounts receivable, the total accounts receivable of top 5 accounts with amount in arrear account for 9.02% of
total accounts receivable of the Group （2013：9.43%）; in other accounts receivable, the total accounts receivable of top
5 accounts with amount in arrear account for 17.22% of total accounts receivable of the Group （2013：20.25%）.
(2) Liquidity risk
Liquidity risk refers to risk of capital shortage caused when the Group executes obligations of settlement in the manner of
cash payment or other financial assets.
In managing liquidity risk, the Group keeps the cash and cash equivalents that the Group deems sufficient and controls
them to meet operating needs, reduce influence of cash liquidity fluctuation. The Group management monitors the use of
bank loans and ensures to comply with borrowing agreement. At the same time, the Group gains the commitment for
providing sufficient reserve funds from main financial institutions, to meet short-term and long-term capital needs.
The Group finance operation funds through capital and bank and other borrowings incurred in operating business. As at
30 June 2015, bank borrowing facility that the Group has not yet used is CNY 881.37 million (31 December 2014: CNY
539.10 million).
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
Maturity analysis of financial liabilities and off-balance-sheet guarantee items by undiscounted remaining contract cash
flow at the end of the period (Unit: CNY ten thousand):
End of the reporting period
Items Within 1 1 to 2 years 2 to 3 years Over 3 years Total
year
Financial liabilities:
Short-term Loan 114,260.15 － － － 114,260.15
Accounts payable 18,959.73 － － － 18,959.73
Interest payable 971.04 － － － 971.04
Other payables 4,182.23 － － － 4,182.23
Other current liabilities 679.08 － － － 679.08
(excluding deferred income)
Long-term Loan － 11,832.00 52.83 5,717.74 17,602.57
Bonds payable － 40,000.00 － － 40,000.00
Financial guarantee 58,260.15 11,832.00 － － 70,092.15
Total financial liabilities or 197,312.38 63,664.00 52.83 5,717.74 266,746.95
contingent liabilities
Maturity analysis of financial liabilities and off-balance-sheet guarantee projects held by the Group in the prior period
according to cash flow of undiscounted remaining contracts (Unit: ten thousands CNY):
Beginning of the reporting period
Items Within a year 1 to 2 years 2 to 3 years Over 3 years Total
Financial liabilities:
Short-term Loan 98,944.50 － － － 98,944.50
Accounts payable 14,711.91 － － － 14,711.91
Interest payable 1,942.09 － － － 1,942.09
Other payables 18,857.49 － － － 18,857.49
Other current liabilities 548.25 － － － 548.25
(excluding deferred income)
Long-term Loan － 7,925.19 4,444.50 1,625.55 13,995.24
Bonds payable － 40,000.00 － － 40,000.00
Financial guarantee 43,644.50 7,889.00 3,944.50 － 55,478.00
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
Total financial liabilities or 178,648.74 55,814.19 8,389.00 1,625.55 244,477.48
contingent liabilities
The amount of financial liability disclosed in the above table is undiscounted contract cash flow and thus may be different
with the carrying amount of balance sheet.
（3）Market risk
Market risk refers to the risk of fluctuation of fair value or future cash flow of financial instruments caused due to market
price change, including interest risk, exchange rate risk and other price risk.
Interest risk
Interest risk refers to the risk of fluctuation of fair value or future cash flow of financial instruments caused due to interest
change. Interest risk may arise from confirmed interest accrual financial instrument and unconfirmed financial instrument
(such as some loan commitments)
The interest risk of the Group mainly arises from long-term bank loans and bonds payable and long-term interest-bearing
debt. Financial liabilities with floating rate lead the Group to cash flow interest risk. Fixed interest rate financial liabilities
lead the Group to fair value interest risk. According to current market environment the Group determines the proportion of
fixed interest and floating interest rate contract, maintaining proper fixed and floating interest instrument combination
through regular review and supervision.
As at 30 June 2015, if borrowing rate measured at floating rate rises or drops 50 base points, and other factors keep
unchanged, net profit and shareholders equity of the Group will decrease or increase about CNY 0.88 million (at 31
December 2014: CNY 0.70 million)
Exchange rate risk
Exchange rate risk refers to the risk of fluctuation of fair value or future cash flow of financial instruments caused due to
exchange rate change. Exchange rate risk may arise from the financial instrument measured at foreign currencies other
than recording currency.
Main operation of the Group is within China, and main businesses are settled in CNY. Therefore, the market risk of
exchange fluctuations undertaken by the Company is not significant.
Refer to Details of other foreign currencies of Notes to the Financial Statement for financial assets of foreign currencies
and financial liabilities of foreign currencies at the end of the period.
2. Capital management
The capital management policies of the Group are formulated to guarantee the Group can keep operation, and thus
provide returns to shareholders and benefit other stakeholders, and at the same time to keep the optimal capital structure
to reduce capital cost.
To keep or adjust capital structure, the Group may adjust amounts of dividends paid for shareholders, return capital to
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
shareholders, issue new shares or sell assets to reduce debts.
The Group supervises capital structure based on asset liability ratio (total liabilities divided by total assets). As at 30 June
2015, the asset-liability ratio of the Group is 56.09% (31 December 2014: 55.26%).
XI. Disclosure of Fair Value
1. Fair value at the end of the reporting period of the assets and liabilities measured based on the
fair value
Inapplicable
2. Basis for determining the market price of the items measured based on the continuous and
non-continuous first level fair value
Quotation of the same assets or liabilities in the active market (unadjusted).
3. Items measured based on the continuous or uncontinuous 2nd level fair value, valuatoin
technique as used, nature of important parameters and quantitative information
Directly (price) or indirectly (derive from price) use observable input value other than market quote of assets or liabilities in
the first level.
4. Items measured based on the continuous or uncontinuous 3rd level fair value, valuatoin
technique as used, nature of important parameters and quantitative information
Use any input value not based on observable market data in assets or liabilities (unobservable input value).
(1) Items and amounts measured at fair value
As at 31 December 2014, there are no assets and liabilities measured at fair value.
(2) Items and amounts not measured at fair value but with fair value disclosed
Financial assets and financial liabilities measured at amortized cost mainly include: cash and bank balances, notes
receivable, accounts receivable, other receivables, short-term loans, notes payable, accounts payable, other payables,
long-term payables, etc.
5. Items measured based on the continuous 3rd level fair value, sensitivity analysis on adjusted
information and unobservable parameters between the book value at beginning and end of the
period
Inapplicable
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
6. In case items measured based on fair value are converted between different levels incurred in
the current period, state the cause of conversion and determine conversion time point
Inapplicable
7. Change of valuation technique incurred in the current period and cause of such change
Inapplicable
8. Fair value of financial assets and financial liabilities not measured at fair value
The difference between the book value of financial assets and financial liabilities that are not measured at fair value and
fair value is small.
9. Others
Inapplicable
XII. Related party relationship and transactions
1. Details of the parent company of the Company
Shareholding ratio Ratio of vote right
Name of parent Place of
Nature of business Registered capital of parent company of parent company
company registration
to the Company to the Company
Investment in
industries,
China National
Shenzhen domestic trade, 1,110,631,996.00 41.49% 41.49%
Aviation Group
material supply
and distribution
Ultimate controlling party of the Company:
CATIC Shenzhen Company holds 35.63% shareholding of China National Aviation Group. CATIC Shenzhen Company is
a wholly owned subsidiary of China Aero Space International Holdings Limited (CASI), and China Aviation Industry
Corporation (AVIC) directly holds 62.52% of the equity of CASI. Therefore, the ultimate controlling party of the Company is
AVIC.
2. Subsidiaries of the Company
Refer to Note IX. 1 for details of subsidiaries of the Company
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
3. Joint venture and association of the Group
Refer to Note IX.2 for details of important joint venture and association
4. Other related parties of the Group
Name of other related parties Relationship with the Group
Shenzhen CATIC Property Management Limited ( CATIC
Controlled by the same party
Property Company)
Shenzhen CATIC Building Equipment Co., Ltd. ( CATIC
Controlled by the same party
Building Company)
Rainbow Department Store Co., Ltd. (Rainbow Department
Controlled by the same party
Store )
Shennan Circuits Co., Ltd. ( Shennan Circuits ) Controlled by the same party
CATIC Real Estate Co., Ltd. (CATIC Real Estate Company) Controlled by the same party
Shenzhen Maiwei Cable TV Equipment Limited ( Maiwei
Controlled by the same party
Company )
AVIC Securities Co., Ltd. ( AVIC Securities Company) Controlled by the same party
Xian Skytel Hotel Co., Ltd. (Skytel Hotel) Controlled by the same party
Shenzhen AVIC Nanguang Elevator Co., Ltd. ( AVIC
Controlled by the same party
Nanguang Company)
Shenzhen CATIC City Real Estate Development Co., Ltd.
Controlled by the same party
( CATIC City Real Estate Company)
Shenzhen CATIC City Development Co., Ltd. ( CATIC City
Controlled by the same party
Development Company)
CATIC Guanlan Property Development Co., Ltd. （CATIC
Controlled by the same party
Mission Hills Property）
CATIC Changtai Investment Development Co., Ltd. (CATIC
Controlled by the same party
Changtai Company )
Shenzhen CATIC Jiufang Asset Management Limited
Controlled by the same party
(CATIC Jiufang Asset Mgmt Company)
Ganzhou CATIC Real Estate Development Co., Ltd.
Controlled by the same party
（Ganzhou CATIC Real Estate Company）
Shenzhen CATIC City Investment Co., Ltd (CATIC City
Controlled by the same party
Investment)
Chengdu CATIC Property Development Co., Ltd (Chengdu
Controlled by the same party
CATIC Property Company)
Chengdu CATIC Sunshine Real Estate Co., Ltd. (Chengdu
Controlled by the same party
CATIC Sunshine Real Estate)
155
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Zhonghang Electronic Measuring Instruments Co., Ltd
Controlled by the same party
(Zhonghang Electronic Company)
Shenzhen CATIC Theme Real-estate Co., Ltd (CATIC
Controlled by the same party
Theme Company)
Shenzhen AVIC Training Center (AVIC Training Center) Controlled by the same party
Jiujiang CATIC City Real Estate Development Co., Ltd.
Controlled by the same party
(Jiujiang CATIC Real Estate Company)
Shenzhen CATIC Huacheng Property Development Co.,
Controlled by the same party
Ltd. (CATIC Huacheng Property Development Company)
Shenzhen CATIC Curtain Wall Engineering Co., Ltd.
Controlled by the same party
(CATIC Curtain Wall Company)
Shenzhen CATIC Nanguang Elevator Engineering Co., Ltd.
Controlled by the same party
(CATIC Nanguang Elevator Company)
AVIC International Trade & Economic Development Ltd.
Controlled by the same party
(AVIC Trade & Economic Company)
Xu Dongsheng Senior executive
Tang Boxue Senior executive
Chen Zhuo Senior executive
Chen Libin Senior executive
Lu Bingqiang Senior executive
Du Xi Senior executive
Lu Wanjun Senior executive
Hu Xinglong Senior executive
5. Related transaction
(1) Related transactions of purchase and sale of commodities and supply and acceptance of
labor services
Details of purchase and sale of commodities and supply and acceptance of labor services
In CNY
Amount incurred
Details of related Transaction quota Has it exceeded the Amount incurred in
Related party in the reporting
transaction approved transaction quota prior period
period
CATIC Property Proporty
1,448,900.66 NO 765,635.66
Company management fee
Rainbow Department store NO
2,245,772.14 1,531,106.86
Department Store expenses
156
FIYTA Holdings Ltd. 2015 Semi-Annual Report
CATIC Curtain NO
Engineering fee 210,000.00 0.00
Wall Company
CATIC Building NO
Engineering fee 89,021.67 0.00
Company
CATIC Nanguang NO
Engineering fee 179,313.80 0.00
Elevator Company
AVIC Trade & NO
Bidding agency
Economic 100,000.00 0.00
service
Company
Shanghai Watch Material NO
128,205.12 0.00
Industry purchase
Statement of sales of goods/supply of labor services
In CNY
Description of related Amount incurred in the
Related parties Amount incurred in prior period
transaction reporting period
Rainbow Department Store Products and labor service 41,152,135.05 39,858,340.52
Aviation Industry Corporation
Sales of products 129,774.36 65,286.32
of China
Shennan Circuits Sales of materials 8,308,488.66 15,005,995.58
(2) Related entrusted management/contracted and mandatory management/contracting
Inapplicable
(3) Related lease
The Company as lessor:
In CNY
Categories of leasehold Rental income recognized in Rental income recognized in
Names of lessees
properties the current period prior period
CATIC Real Estate Company Building 766,714.84 754,416.00
CATIC Property Company Building 1,330,272.00 1,330,272.00
CATIC Securities Company Building 562,320.00 536,760.00
CATIC City Real Estate
Building 82,563.86 11,160.00
Company
CATIC City Development
Building 11,341.94 11,160.00
Company
Guanlan Real Estate Building 45,367.74 44,640.00
157
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Company
CATIC Changtai Company Building 480,384.00 642,816.00
Tianyue Hotel Company Building 2,350,000.00 2,708,299.98
Rainbow Department Store Building 230,640.02 224,280.02
Jiufang Asset Mgmt
Building 181,818.00 181,818.00
Company
CATIC City Investment
Building 218,657.29 45,012.00
Company
CATIC Theme Real Estate
Building 353,338.00 472,812.00
Company
CATIC Huacheng Property
Building 55,960.08 0.00
Development Company
CATIC Technology
Building 0.00 210,270.00
Shenzhen Company
Company as a lessee
In CNY
Rental expenses charged in Rental expenses charged in
Name of lessor Type of leased assets
current period prior period
Ganzhou CATIC Real Estate
Building 509,379.75 501,799.74
Company
Jiujian CATIC Real Estate
Building 153,054.77 0.00
Company
CATIC Changtai Company Building 85,154.99 0.00
Chengdu CATIC Property
Building 0.00 404,994.68
Company
(4) Related guarantee
The Company as a guarantor
In CNY
If the guarantee
Guarantees Amount guaranteed Effective date Expiring date
finished?
HARMONY Company 30,000,000.00 May 14, 2015 May 13, 2018 No
HARMONY Company 27,000,000.00 May 20, 2015 May 19, 2018 No
HARMONY Company 100,000,000.00 October 29, 2014 October 28, 2017 No
HARMONY Company 50,000,000.00 December 8, 2014 December 7, 2017 No
HARMONY Company 60,000,000.00 January 13, 2015 January 12, 2018 No
158
FIYTA Holdings Ltd. 2015 Semi-Annual Report
HARMONY Company 13,500,000.00 March 27, 2015 September 27, 2017 No
FIYTA Hong Kong 10,365,660.24 February 3, 2015 November 13, 2015 No
FIYTA Hong Kong 3,944,000.00 March 12, 2015 November 13, 2015 No
FIYTA Hong Kong 4,732,800.00 April 2, 2015 November 13, 2015 No
FIYTA Hong Kong 2,589,220.22 May 6, 2015 November 13, 2015 No
FIYTA Hong Kong 10,469,837.06 June 2, 2015 November 13, 2015 No
FIYTA Hong Kong 39,440,000.00 July 11, 2013 2016 年 08 月 10 日 No
FIYTA Hong Kong 39,440,000.00 August 5, 2013 2016 年 09 月 04 日 No
FIYTA Hong Kong 15,776,000.00 January 6, 2014 2017 年 02 月 06 日 No
FIYTA Hong Kong 7,888,000.00 January 27, 2014 2017 年 02 月 27 日 No
FIYTA Hong Kong 15,776,000.00 March 3, 2014 2017 年 04 月 03 日 No
The Company as the guarantee
In CNY
If the guarantee
Guarantors Amount guaranteed Effective date Expiring date
finished?
HARMONY Company 60,000,000.00 January 27, 2015 January 25, 2018 No
HARMONY Company 140,000,000.00 March 3, 2015 March 2, 2018 No
HARMONY Company 70,000,000.00 March 30, 2015 March 30, 2018 No
China National Aviation
361,928.00 December 24, 2013 December 24, 2018 No
Group
China National Aviation
5,000,000.00 January 15, 2014 June 24, 2019 No
Group
China National Aviation
10,000,000.00 September 5, 2014 June 24, 2020 No
Group
China National Aviation
10,000,000.00 January 8, 2015 June 24, 2020 No
Group
China National Aviation
20,000,000.00 January 26, 2015 June 24, 2021 No
Group
China National Aviation
6,000,000.00 May 27, 2015 June 24, 2021 No
Group
(5) Borrowings and lendings among related parties
In CNY
Related parties Lending Effective day Expiry date Note
Borrowing
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
The accrued interest of
the loan from China
China National Aviation
150,000,000.00 May 26, 2014 May 25, 2015 National Aviation
Group
Group amounted to
CNY 1,299,999.99.
Lending
Inapplicable
(6) Assets assignment and liabilities reorganization of related parties
Inapplicable
(7)Remuneration to senior executives
Inapplicable
(8) Other related transactions
Inapplicable
6. Accounts receivable from and payable to related parties
(1) Receivables
In CNY
Ending balance Opening balance
Description Related parties
Book balance Bad debt provision Book balance Bad debt provision
Accounts Rainbow
8,472,971.08 423,648.55 2,134,424.46 106,721.22
receivable Department Store
AVIC 539,797.00 26,989.85 524,313.00 68,144.58
Shennan Circuits 5,169,656.22 258,482.81 1,477,311.21 73,865.56
Chengdu CATIC
Sunshine Real 999.00 49.95 7,875.00 393.75
Estate
Notes receivable Shennan Circuits 3,790,772.80 6,162,768.29
Ganzhou CATIC
Other receivables Real Estate 122,665.60 6,133.28 172,665.60 14,766.56
Company
Jiujiang CATIC
Real Estate 50,000.00 2,500.00
Company
160
FIYTA Holdings Ltd. 2015 Semi-Annual Report
CATIC City
Development 3,001.94 150.10
Company
CATIC City Real
74,223.86 3,711.19
Estate Company
CATIC Huacheng
Property
55,960.08 2,798.00
Development
Company
Rainbow
360,306.60 18,015.33 308,001.60 15,400.08
Department Store
CATIC Changtai
50,000.00 2,500.00 50,000.00 2,500.00
Company
AVIC Training
150,000.00 7,500.00
Center
Chengdu CATIC
Sunshine Real 115,616.40 5,780.82 115,616.40 11,561.64
Estate
Note: In case a related transaction is settled based on net amount according to agreement, accounts receivable from a
related party may be stated with the amount after offsetting.
(2) Payables
In CNY
Description Related parties Ending book balance Opening book balance
133,848.00
Rainbow Department Store 34,980.00
Shanghai Watch Industry 647,691.97
CATIC City Investment
Other payables 244,068.00 37,700.00
Company
CATIC Securities Company 187,440.00 187,440.00
China National Aviation
0.00 150,000,000.00
Group
CATIC Real Estate Company 424,800.00 424,800.00
CATIC Changtai Company 221,712.00 221,712.00
Jiufang Asset Mgmt
60,606.00 60,606.00
Company
Rainbow Department Store 60,000.00 60,000.00
161
FIYTA Holdings Ltd. 2015 Semi-Annual Report
Chengdu CATIC Sunshine
8,849.40 114,648.52
Real Estate
Note: In case a related transaction is settled based on net amount according to agreement, accounts payable to a related
party may be stated with the amount after offsetting.
7. Related parties’ commitments
Inapplicable
8. Others
Inapplicable
XIII. Stock payment
1. General condition of stock payment
Inapplicable
2. Stock payment settled based on equity
Inapplicable
3. Stock payment settled in cash
Inapplicable
4. Correction and termination of stock payment
Inapplicable
5. Others
Inapplicable
XIV. Commitments and contingencies
1. Important commitments
Important commitments existing on balance sheet date
(1) Capital commitment
Capital commitments already signed but not yet End of the reporting Beginning of the
162
FIYTA Holdings Ltd. 2015 Semi-Annual Report
recognized in the financial statements period reporting period
Commitment for purchase/ construction of long term assets 142,640,588.31 187,127,768.52
(2) Operating lease commitment
Implementation of irrevocable operating lease contract signed by the Company ended the balance sheet date is as
follows:
Minimum rent payment of irrevocable operating End of the reporting period Beginning of the reporting
lease period
st
1 year after the balance sheet date 14,437,021.28 28,940,871.89
nd
2 year after the balance sheet date 18,385,548.63 18,388,748.63
rd
3 year after the balance sheet date 8,701,355.74 8,702,855.74
Subsequent years 3,008,648.97 3,008,648.97
Total 44,532,574.62 59,041,125.23
(3) Other commitments
There existed no other commitments necessary to be disclosed ended 30th June, 2015.
XV. Other significant events
1. Significant non-adjustment events
Inapplicable
2. Profit distribution
In CNY
Profit or dividend announced for distribution through
39,276,787.00
consideration and approval
3. Sales return
Inapplicable
163
FIYTA Holdings Ltd. 2015 Semi-Annual Report
4. Note to other matters after the balance sheet date
Inapplicable
XVI. Other significant events
1. Correction of accounting errors of prior period
(1) Retroactive restatement
Inapplicable
(2) Prospective application
Inapplicable
2. Reorganization of liabilities
Inapplicable
3. Assets replacement
(1) Exchange of non-monetary assets exchange
Inapplicable
(2) Other asset replacement
Inapplicable
4. Annuity plan
Inapplicable
5. Operation termination
Inapplicable
6. Information of branches
(1) Basis for determining a reporting branch and accounting policy
Inapplicable
164
FIYTA Holdings Ltd. 2015 Semi-Annual Report
(2) Financial information of reporting branches
Inapplicable
(3) In case there is no reporting branch or it is unable to disclose total assets and liabilities of
reporting branches, state the reason
Inapplicable
(4) Other notes
Inapplicable
7. Other significant transactions and events affecting investors’ decision making
Inapplicable
8. Others
Inapplicable
XVII. Notes to the parent company’s financial statements
1. Accounts receivable
(1) Disclosure of classification of accounts receivable
In CNY
Ending balance Opening balance
Provision for Provision for bad
Book Balance Book Balance
bad debt debt
Categories Book Book
Provisi Provisio
Amou Propor Amou on value Amo Propor Amoun n value
nt tion nt propor unt tion t proportio
tion n
Receivables for
which provision
12,3
for bad debts
75,07 100.0 3,753. 71,324 02,7 100.0 566,94 11,735,7
have been 5.00% 4.61%
8.00 0% 90 .10 30.0 0% 2.10 87.90
recognized
0
based on the
portfolio
Total 75,07 100.0 3,753. 5.00% 71,324 12,3 100.0 566,94 4.61% 11,735,7
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
8.00 0% 90 .10 02,7 0% 2.10 87.90
30.0
0
Receivables that are individually significant in amount and provided for bad debt separately at the end of period:
Inapplicable
In the portfolio, receivables with provision for bad and doubtful debts based on aging analysis method:
In CNY
Ending balance
Age
Accounts receivable Provision for bad debt Provision proportion
Itemized based on those within 1 year
Sub-total within 1 year 75,078.00 3,753.90 5.00%
Total 75,078.00 3,753.90 5.00%
Note to the basis for determiing that portfolio:
In the portfolio, receivables with provision for bad and doubtful debts based on the balance percentage method:
Inapplicable
In the portfolio, receivables with provision for bad and doubtful debts based on other method.
Inapplicable
(2) Bad debt provisions accrued, received or reversed in the current period
The amount of bad debt provisions in CNY: the amount of bad debt provisions received or reversed in current period is
CNY 563,188.20.
(3) Accounts receivable actually written off in current period
Inapplicable
(4) Accounts receivable due from the top five debtors of the Group are as follows:
Total accounts receivable due from the top five debtors of the Group as at the end of period is CNY75,078.00, accounting
for 100% of the total accounts receivable as at the end of period and the total provision for bad and doubtful debts made
as at at the end of period is CNY 3,753.9.
(5) Accounts receivable derecognized due to transfer of financial assets
Inapplicable
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
(6) Amount of assets and liabilities formed due to transfer of accounts receivable and continuing
to be involved
Inapplicable
2. Other receivables
(1) Disclosure of classification of other receivables
In CNY
Ending balance Opening balance
Provision for Provision for bad
Book Balance Book Balance
bad debt debt
Categories Book Book
Provisi Provisio
Amou Propor Amou on value Amo Propor Amoun n value
nt tion nt propor unt tion t proportio
tion n
Other receivables
for which bad 1,52
1,591, 1,591,
debt reserve has 100.0 156,3 4,54 100.0 27,484 1,524,51
511,12 0.01% 354,74 0.01%
been provided 0% 82.34 0,59 0% .97 3,111.66
5.88 3.54
based on the 6.63
portfolio
1,52
1,591, 1,591,
100.0 156,3 4,54 100.0 27,484 1,524,51
Total 511,12 0.01% 354,74 0.01%
0% 82.34 0,59 0% .97 3,111.66
5.88 3.54
6.63
Other receivables that are individually significant in amount and provided for bad debt separately at the end of period:
Inapplicable
Inapplicable
In the portfolio, other receivables with provision for bad and doubtful debts based on aging analysis method:
In CNY
Ending balance
Age
Other receivables Provision for bad debt Provision proportion
Itemized based on those within 1 year
Sub-total within 1 year 2,832,722.84 141,636.14 5.00%
Over 3 years 29,492.40 14,746.20 50.00%
Total 2,862,215.24 156,382.34 5.46%
Note to the basis for determiing that portfolio:
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
In the portfolio, other receivables with provision for bad and doubtful debts based on the balance percentage method:
Inapplicable
In the portfolio, other receivables with provision for bad and doubtful debts based on other method.
Name of portfolio Book Balance Provision for bad debt Provision proportion %
Portfolio of specific 1588648910.64 - -
accounts
Based on historical experience, the Groups receivables due from petty cash paid to employees, receivables due from
subsidiaries of the Company and accounts receivable for the sales between the last settlement date of the same
department store and the balance sheet date are with high recoverability and low possibility of incurring bad debt, as a
result, no bad debt provisions are provided for such receivables.
(2) Bad debt provision accrual, received or reversed in current period
Bad debt provision accrued is CNY 128,897.37 in current period; The amount received or reversed bad debt provision in
current period was CNY .
(3) Other receivables actually written off in the current period
Inapplicable
(4) Classification of the other receivables based on the nature of fund
In CNY
Nature of Payment Ending book balance Opening book balance
Dealings among related parties within
1,588,149,838.34 1,523,785,927.87
the consolidation scope
Reserve 499,072.30 620,763.36
Deposit in security 1,000,000.00 0.00
Deposit in security 104,050.00 64,050.00
Others 1,758,165.24 69,855.40
Total 1,591,511,125.88 1,524,540,596.63
(5) Other receivables attributable to the top five debtors of the ending balance
In CNY
Proportion in total Ending balance
Nature of
Company names Ending balance Age ending balance of the provision
Payment
of other for bad debts
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
receivables
Shenzhen
Harmony World Current
878,408,879.43 Within 1 year 55.19% 0.00
Watches Center accounts
Co., Ltd.
FIYTA Sales Current
608,348,891.02 Within 1 year 38.22% 0.00
Company accounts
Emile Choureit
Current
Shenzhen 64,893,691.45 Within 1 year 4.08% 0.00
accounts
Company
Current
Trading Company 24,472,281.46 Within 1 year 1.54% 0.00
accounts
FIYTA Technology Current
9,415,388.81 Within 1 year 0.59% 0.00
Company accounts
1,585,539,132.1
Total -- -- 99.62% 0.00
7
(6) Accounts receivable in connection with government subsidy
Inapplicable
(7) Other receivables derecognized due to transfer of financial assets
Inapplicable
(8) Amount of assets and liabilities formed due to transfer of other receivables and continuing to
be involved
Inapplicable
3.Long term equity investment
In CNY
Ending balance Opening balance
Items Impairment Impairment
Book Balance Book value Book Balance Book value
reserve reserve
Investment in 770,899,720.0 770,899,720. 730,799,720. 730,799,720.
0.00 0.00
subsidiaries 0 00 00 00
Investment in
42,639,775.6 42,389,759.9 42,389,759.9
associates 42,639,775.66 0.00 0.00
6 1 1
and joint
169
FIYTA Holdings Ltd. 2015 Semi-Annual Report
ventures
813,539,495.6 813,539,495. 773,189,479. 773,189,479.
Total 0.00 0.00
6 66 91 91
(1) Investment in subsidiaries
In CNY
Provision
Ending
Increase in Decrease in reserve
Opening Ending balance of the
Investees the reporting the reporting provided in the
balance balance provision for
period period reporting
impairment
period
Shenzhen
Harmony
601,307,200. 601,307,200.
World Watches
00 00
Center Co.,
Ltd.
HarbinShenzh
en Harmony
World Watches 125,000.00 125,000.00
Center Co.,
Ltd.
FIYTA
Manufacture 9,000,000.00 9,000,000.00
Company
FIYTA (Hong 55,367,520.0 40,100,000.0 95,467,520.0
Kong) Limited 0 0 0
FIYTA
10,000,000.0 10,000,000.0
Technology
0 0
Company
Trading
5,000,000.00 5,000,000.00
Company
FIYTA Sales 50,000,000.0 50,000,000.0
Company 0 0
730,799,720. 40,100,000.0 770,899,720.
Total 0.00
00 0 00
(2) Investment in joint venture and associates
In CNY
Invest Openin Increase/ Decrease (+ / -) in the reporting period Ending Ending
170
FIYTA Holdings Ltd. 2015 Semi-Annual Report
ors g Incom balanc balanc
balanc e from Annou e e of
e equity Other n ced the
invest compr for provisi
Additio Decrea Other Provisi
ment ehensi distribu on for
nal se of equity on for
recogn ve ting Others impair
invest invest move impair
ized income cash ment
ment ment ment ment
under adjust dividen
equity ment d or
metho profit
d
I. Joint Venture
II. Associates
Shang
hai 42,389 42,639
250,01
Watch ,759.9 ,775.6 0.00
5.75
Industr 1 6
y
42,389 42,639
Sub-tot 250,01
,759.9 ,775.6 0.00
al 5.75
1 6
42,389 42,639
250,01
Total ,759.9 ,775.6 0.00
5.75
1 6
(3) Other notes
Inapplicable
4. Operating revenue and operating costs
In CNY
Amount incurred in the reporting period Amount incurred in the previous period
Items
Income Cost Income Cost
Principal business 47,530,000.90 6,946,511.39 42,966,203.07 6,497,016.07
Total 47,530,000.90 6,946,511.39 42,966,203.07 6,497,016.07
5. Return on investment
In CNY
Items Amount incurred in the reporting Amount incurred in the previous
171
FIYTA Holdings Ltd. 2015 Semi-Annual Report
period period
Income from long term equity
131,388,140.58 98,601,444.91
investment based on cost method
Income from long term equity
250,015.75 -504,563.21
investment based on equity method
Total 131,638,156.33 98,096,881.70
6. Others
Inapplicable
XVIII. Supplemental Information
1. Details of non-recurring gain or loss for the year
In CNY
Items Amount Note:
Refers to the gain or loss from
Gain/loss from disposal of non-current
34,200.78 disposal of partial obsolete office
assets
fixed assets
Government grants included in current
profit or loss (except for the fixed or
quantitative government grants,
For the detail, refer to Note VII.69:
enjoyed in a consecutive way, which
1,603,451.99 Description of government subsidy
closely related to the enterprise
counted to the current gain or loss
businesses and according to certain
state policies and or on a nation-wide
unified standard)
Other non-operating income and Other various non-operating revenue
-133,218.09
expenses other than the above items and expenditure
Less: amount of income tax affected 353,100.22
Total 1,151,334.46 --
For the Companys 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
172
FIYTA Holdings Ltd. 2015 Semi-Annual Report
2. ROE and EPS
Earnings per share
Net assets-income ratio, weighted
Profit of the report period Basic earnings per Diluted earnings per
average
share, in CNY/share share (CNY/share)
Net profit attributable to the
Companys shareholders of 4.36% 0.186 0.186
ordinary shares
Net profit attributable to the
Companys shareholders of
4.29% 0.183 0.183
ordinary shares less
non-recurring gains and loss
3. Discrepancy in accounting data between IAS and CAS
(1) Discrepancy in net profit and net assets as disclosed in the financial report respectively according to IAS and
CAS
Inapplicable
(2) Discrepancy in net profit and net assets as disclosed in the financial report respectively according to the
accounting standards outside Mainland China and CAS
Inapplicable
(3) Note to the discrepancy in accounting data under the accounting standards outside Mainland China. In case
the discrepancy in data which have been audited by an overseas auditing agent has been adjusted, please
specify the name of the overseas auditing agent.
Inapplicable
4. Others
Inapplicable
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FIYTA Holdings Ltd. 2015 Semi-Annual Report
Section 10 Documents Available for Inspection
I. Financial Statements signed by and under the seal of the legal representative, chief accountant and accounting
supervisors;
II. All the manuscripts of the Companys documents and announcements disclosed in the newspapers (Securities Times
and Hong Kong Commercial Daily) designated by China Securities Regulatory Commission.
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