FIYTA Holdings Ltd. 2016 Semi-Annual Report
FIYTA HOLDINGS LTD.
2016 Semi-Annual Report
August, 2016
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FIYTA Holdings Ltd. 2016 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 directors, all the other directors personally attended the board meeting for reviewing
the Annual Report:
Names of the directors Titles of the directors Cause of failure in attending Names of the attorneys
failed in attending the board failed in attending the board the board meeting
meeting personally meeting personally personally
Liu Aiyi Director Business trip Cao Zhen
Zhong Sijun Director Business trip Wang Mingchuan
Wang Yan Independent director Business trip Zhang Shunwen
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. Tian Hui, the
manager of the accounting department (treasurer) hereby confirm the authenticity and completeness of
the financial report enclosed in this Annual Report.
Any perspective description involved in the Report, such as the future plan, development strategy, etc.
shall not compose the Company’s substantial undertaking to the investors. Investors are advised to pay
attention to the risks involved in their investment.
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
Table of Contents
2016 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. 2016 Semi-Annual Report
Definition
Terms to be defined Refers to Definition
This Company, the Company or Fiyta Refers to FIYTA Holdings Ltd.
AVIC International Holdings Refers to AVIC International Holdings Limited
HARMONY Refers to Shenzhen Harmony World Watches Center Co., Ltd.
Rainbow Supermarket Refers to Rainbow Supermarket Co., Ltd.
CATIC Real Estate Refers to CATIC Real Estate Co., Ltd.
CATIC Property Refers to CATIC Property Management Co., Ltd.
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FIYTA Holdings Ltd. 2016 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（集团)股份有限公司
name in Chinese (if any)
Company Name in English
(if any) FIYTA
Abbreviation of Company
FIYTA HOLDINGS LTD.
Name in English (if any)
Legal Representative of the
Xu Dongsheng
Company
II. Liaison Persons and Way of Communication
Secretary of the Board Securities Affairs Representative
Names Lu Wanjun Zhang Yong
20th Floor, FIYTA Technology Building, 20th Floor, FIYTA Technology Building,
Liaison Address Gaoxin S. Road One, Nanshan District, Gaoxin S. Road One, Nanshan District,
Shenzhen 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
Is there any change in the Company’s registered address, office address, postal code, website, e-mail
address in the reporting period?
Inapplicable
2. Information Disclosure and Place of Regular Reports Prepared for Inquiry
There is no change in the name of the newspapers designated for disclosing the information, internet web site designated
by China Securities Regulatory Commission for publishing the company’s semi-annual report: and place of the company’s
semi-annual report prepared for inquiry. For the detail, please refer to 2015 Annual Report
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
3. Changes of the Registration Data
No change took place with the Company’s registration date, registration number of the business licence, tax registration
number, organization code, etc. during the reporting period. For more detailed information, please refer to 2015 Annual
Report.
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
Section 3 Financial Highlights
I. Summary of Accounting and Financial Data
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to change
of the accounting policies and correction of accounting errors?
No
Same period of the Year-on-year
Reporting period
previous year increase/decrease
Turnover in RMB 1,479,527,783.18 1,683,793,247.59 -12.13%
Net profit attributable to the Company’s
60,513,019.44 73,109,419.73 -17.23%
shareholders, in RMB
Net profit attributable to the Company’s
shareholders less the non-recurring 59,792,409.84 71,958,085.27 -16.91%
items, in RMB
Net cash flows arising from operating
217,609,732.54 172,253,778.56 26.33%
activities, in RMB
Basic earning per share (RMB/share) 0.1379 0.1861 -25.90%
Diluted earning per share (RMB/share) 0.1379 0.1861 -25.90%
Return on equity, weighted average (%) 2.59% 4.36% -1.77%
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 RMB 4,012,803,246.93 4,246,670,045.02 -5.51%
Net assets attributable to the
Company’s shareholders (owner’s
2,325,432,058.26 2,299,215,650.21 1.14%
equity attributable to the Company’s
shareholders, in RMB)
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 Company’s 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 Company’s
shareholders according to both the IAS and the CAS
Inapplicable
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
III. Non-recurring gain/loss items and the amount involved
In RMB
Items Amount Notes
It refers to the gain/loss from
Gaub/loss from disposal of non-current assets, including the
-83,873.03 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 losses For the detail, refer to Note VII
(excluding those closely related to the Company’s business and XVIII Government
815,000.00
and granted under the state’s policies according to certain Subsidy Counted To The
quota of amount or volume) Current Profit And Loss.
Income and expenses from the business other than the Other various non-operating
142,264.29
above items revenue and expenditure
Less: Amount affected by the income tax 152,781.66
Total 720,609.60 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering their Securities to the Public – Non-recurring Gains and Losses and its non-recurring
gain/loss items as illustrated in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
their Securities to the Public – Non-recurring Gains and Losses which have been defined as recurring gains and losses, it
is necessary to explain the reason.
Inapplicable
Section 4 Report of the Board of Directors
I. Overview
During the reporting period, the environment of the macroeconomy and the retail consumption industry were still
confronted with bigger pressure of growth. The situation of the domestic watch retail market was still not optimistic. Under
such background, the Company faced the environment pressure with the attitudes of innovation and progressiveness,
working hard for prosperity, and facing challenges, continued to stick to its own philosophy and brand development
strategy, constantly improved the business operation in the Chinese market with “deep ploughing, fusion, innovation and
improving efficiency” as its strategic theme of the year, constantly improved the business in the Chinese market and kept
a close watch on the Chinese people’s market; with customers’ demand as the original point, carefully studied the trend of
the industry, accurately identified the customers’ demands, kept creating excellent own brand ethnic group and high
efficiency famous watch retail comprehensive service supplier, focused on brand construction, customer study, business
model innovation and new business exploration, etc. and tried every means to realized good performance result. In the
reporting period, the Company realized operating revenue amounting to RMB 1,479,527,783.18, a 12.13% year-on-year
drop; realized net profit amounting to RMB 60,513,019.44, a 17.23% year-on-year drop. In the second quarter, the
comprehensive growth on moving base of the net profit realized by the Company was 22.06% over the first quarter.
During the reporting period, HARMONY carried out the operation work in series in in a deep-going way with all the work
centering the customers, strove to improve output of individual shops, continuously optimized the inventory structure,
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
shop-front structure, vitalized the low efficiency assets, energetically developed repairing services, kept carrying forward
rapid development of e-commerce. During the reporting period, HARMONY continued to enhance transformation and
upgrading of the business model, realized operating revenue amouting to RMB 929,986,317.85, a 17.76% year-on-year
drop but the operating profit got improved mildly.
During the reporting period, the Company implemented the customer study in full operation for the own brand business
with FIYTA as the core, looked into and grasped the trend of demand of different consumer groups, further refined and
enriched the DNA of the own brand, optimized the progress of launching new products, reinforced the cost control ability;
accelerated increase of investment in accurate marketing through the Internet, enhanced the exposure of the brand and
improved the brand influence and reputation; enhanced the construction of shopping guide ability, improved the capability
of channel operation. In the reporting period, the Company kept carrying forward newly-developng businesses, and
realized good development in smart watches, e-commerce, ONAS&VERUS and overseas business
During the reporting period, the Company kept steady growth in income from properties and realized revenue amounting
to RMB 49,145,205.51, a 3.70% year-on-year growth.
II. Analysis on Principal Business
Year-on-year change of the principal financial data
In RMB
Same period of the Year-on-year
Reporting period Causes of Movements
previous year increase/decrease
Operating revenue 1,479,527,783.18 1,683,793,247.59 -12.13%
Operating cost 881,663,280.51 1,037,981,721.35 -15.06%
Sales expenses 378,007,640.11 386,297,227.92 -2.15%
Administrative
94,847,009.60 100,131,176.65 -5.28%
expenses
The Company failed in
raising proceeds by
non-public issuing of A
shares at the end of
2015. As a result, the
operational cash stock
Financial expenses 35,230,653.98 50,889,786.79 -30.77%
was quite abundant
during the reporting
period and partial
interest bearing
liabilities have been
repaid.
During the reporting
Income tax expenses 15,779,713.54 22,261,660.23 -29.12% period, the Company’s
total profit dropped by
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
20.49% over the same
period of the previous
year. The manufacture
company, one of the
Company’s
subsidiaries, as a
hi-tech enterprise
enjoying key support
from the central
government with
preferential enterprise
income tax rate,
completed the
re-valuation of the
fourth quarter of 2015.
During the reporting
period, the enterprise
income tax was
counted at 15% while
the applicable rate of
the same period of the
previous year was
25%.
R & D investment 18,483,969.94 18,788,221.52 -1.62%
During the reporting
period, based on the
increasingly
complicated market
environment, the
Company controlled
Net cash flow from
217,609,732.54 172,253,778.56 26.33% properly the network
operating activities
development speed
and inventories
procurement, and
enhanced the
management of the
cash flow.
Net cash flow from
-100,946,266.01 -110,919,548.69 -8.99%
investment activities
The Company failed in
Net cash flow from raising proceeds by
-257,228,709.41 -17,014,123.13 1,411.85%
financial activities non-public issuing of A
shares at the end of
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
2015. As a result, the
operational cash stock
was quite abundant
during the reporting
period and partial
interest bearing
liabilities have been
repaid.
It was mainly due to
that the proceeds
Net increase of cash
-140,290,895.31 43,999,662.37 -418.85% raised in the reporting
and cash equivalents
period was put into
application.
Great change has taken place in profit composition or profit sources in the reporting period
Inapplicable
Future development and plan extended to the reporting period as disclosed in the documents of public disclosure, such as
the company’s prospectus, letter of intent on the offering and asset reorganization report, etc.
Inapplicable
Review and summary of the progress of the operaton plan in the reporting period the Company disclosed previously
Inapplicable
III. Composition of Principal Businesses
In RMB
Increase/decrea Increase/decrea
Increase/decrea
se of principal se of gross
se of revenue in
Operating business cost profit rate over
Operating costs Gross margin the same period
revenue over the same the same period
of the previous
period of of the previous
year
previous year year
Sectors
1,419,936,131.7
Watches 874,081,432.48 38.44% -12.65% -15.09% 1.77%
4
Leases 49,145,205.51 6,783,241.62 86.20% 3.70% -2.35% 0.86%
Products
Sales of famous
929,986,317.85 696,749,754.94 25.08% -17.76% -19.33% 1.45%
brand watches
Sales of FIYTA
489,949,813.89 177,331,677.54 63.81% -0.97% 6.99% -2.69%
watches
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
Property lease 49,145,205.51 6,783,241.62 86.20% 3.70% -2.35% 0.86%
Regions
Northeast China 151,667,894.58 97,691,934.85 35.59% -8.09% -7.45% -0.44%
North China 179,720,581.18 115,279,446.67 35.86% -35.35% -38.78% 3.59%
Northwest
253,190,904.95 164,030,335.28 35.21% -8.74% -11.96% 2.37%
China
Southwest
151,356,328.94 98,573,038.91 34.87% -18.70% -19.52% 0.66%
China
East China 191,582,266.32 115,775,006.13 39.57% -16.46% -19.13% 1.99%
South China 541,563,361.28 289,514,912.26 46.54% 0.83% -0.36% 0.64%
IV. Analysis on Core Competitiveness
The Company’s core competitiveness is a collection of techniques and technologies which enable the Company to
provide the customers with specific value and is the competitiveness which products or services must rely on in process of
taking a leading position. Suc abilities consist of abilities of brand building, quality services, product innovation, strategic
human resource management and knowledgement management. At present, the Company is a national industrial design
center and national technology center. All the manufacturing enterprises are national hi-tech manufacturers. In addition,
the Company has participated in preparation and amendment work of a number of national and industrial standards.
In addition that the aforesaid core abilities have kept consolidation, during the reporting period, the Company achieved
great success in technology platform construction and science and technology innovation. The Company was elected a
pilot enterprise in implementing the Informationization and Industrialization Intergration Management System and the
Company’s technology center was certified as a key laboratory of light industry in China. During the first half year of 2016,
the Company applied for 4 patents of invention, 3 patents for utility models and 20 design patents; was granted 1 patent of
invention, 7 patents of utility models and 24 design patents; took lead or participated in preparation and amendment of 3
national standards.
V. Analysis on Investment Status
1. External Equity Investment
(1) External Investment
Inapplicable
(2) Holding of the Equipty in Financial Enterprises
Inapplicable
(3) Investment in Securities
Inapplicable
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
(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 RMB10,000
Total raised capital 98,550
Total raised capital invested in the reporting period 21,231
Total raised capital accumulatively invested 77,590
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
Note to Application of the Raised Capital
The Company held the 33rd meeting of the Sixth Board of Directors and 2012 1st extraordinary general meeting
respectively on June 19, 2012 and July 6, 2012. The meetings 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 RMB400
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 RMB 400 million. The Company issued RMB 400 million of bonds in the said
period. After deduction of the issuing costs, the net raised capital amounting to RMB396.9 million was remitted to the
bank account designated by the Company on March 5, 2013. RSM China CPAs, the CPAs engaged by the Company
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
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 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 had used up all the raised
capital and no change has taken place in the application purpose of the raised capital. By February 29, 2016, the
Company had redeemed all the company bonds and the company bonds have been delisted.
The Company held the 18th meeting of the Seventh Board of Directgors and 2014 Annual General Meeting respectively
on April 16, 2015 and June 17, 2015. The meetings reviewed and approved the Proposal on the Plan for Non-public
Issuing of A-shares to the Specified Investors, etc., according to which the Company planned to issue in a non-public
way A-shares to no more than 10 (with 10 inclusive) specified investors with the total raised capital not exceeding RMB
600 million, which would be applied for four projects, including the project of launching new FIYTA watches and
supplement the working capital. The application for non-public issuing of A-shares was reviewed and approved by CSRC
Securities Issuance Examination Committee (CSIEC) on October 30, 2015. On November 17, 2015, the Company
received Official Reply to FIYTA Holdings Ltd. on Approval for Non-public Issuing ( ZHENG JIAN XU KE [2015] No. 2588
which authorized the Company to issue no more than 46,911,649 new shares in non-public way. The actual number of
A-shares actually issued in the non-public issuing activity was 45,977,011 shares and the raised capital amounted to
RMB 599 million. After deduction of the issuing costs, the net raised capital amounting to RMB583 million was remitted
to the bank account designated by the Company on December 18, 2015. Grant Thornton Certified Public Accountants
(Special General Partnership) issued the Capital Verification Reports ZHI TONG YAN ZI (2015) No. 441ZC0653, ZHI
TONG YAN ZI (2015) No. 441ZC0652 respectively for the raised capital. The A-shares issued in a non-public way were
registered for listing on January 15, 2016 and locked for 12 months. The Company has published the Announcement of
Commitment concering the Shares Issued in a Non-public Way. Up to now, the capital raised from non-public issuing of
A-shares is going to be applied for the originally designated application purpose and there exists no such a case that the
application purpose has been changed. The concerned follow-up commitments are in process of implementation.
(2) Projects Invested with Raised Capital as Promised
In RMB 10,000
Has
Amount Investmen Date when
Has the significant
Total accumulati t progress the project Has the
project Total Result change
Promised investment promised Amount vely by the end has predicted
been investmen realized in taken
projects and investment investmen invested in invested of the reached operation
changed t after the place in
with the over-raised t with the report up to the report the result
(including adjustmen reporting the
capital raised period end of the period (%) predicted been
partial t (1) period feasibility
capital report (3) = applicable reached?
change) of the
period (2) (2)/(1) status
project?
Projects invested with raised capital as promised
Repayment of bank loan No 30,000 30,000 0 30,000 100.00% 0 Yes No
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
Replenishing the working
No 10,000 10,000 0 10,000 100.00% 0 Yes No
capital.
New arrival project of
No 18,000 18,000 14,265 14,283 79.35% 0 Yes No
FIYTA watch products
FIYTA E-commerce
No 12,000 12,000 2,051 3,265 27.21% 0 Yes No
project
FIYTA Brand marketing
No 10,000 10,000 1,219 5,920 59.20% 0 Yes No
and promotion project
Technic Service Website
No 5,000 5,000 616 1,042 20.83% 0 Yes No
Construction Project
Replenishing working
No 15,000 15,000 3,080 13,080 87.20% 0 Yes No
capital
Subtotal of investment
-- 100,000 100,000 21,231 77,590 -- -- 0 -- --
projects as committed
Intended investment with the over-raised capital
Inapplicable
Total -- 100,000 100,000 21,231 77,590 -- -- 0 -- --
Description and causes
of failure in realizing the
planned progress or Inapplicable
expected earning (based
on specific projects)
Explanation on great
change in project Inapplicable
feasibility
Amount of the Inapplicable
over-raised proceeds,
application and progress
of application
Change of the place for Inapplicable
implementation of the
investment project with
the raised capital
Adjustment of the way for Inapplicable
implementation of the
investment project with
the raised capital
Advance investment in Applicable
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
the investment project The Company raised proceeds amounting to RMB 599 million from the project of non-public issuing of A shares. After
with raised capital and deduction of the underwriting fee, the raised proceeds amounted to RMB 585 million. After deduction of the other
the replacement expenses in connection with the non-public issuing, the net amount of the raised capital was RMB583 million.
According to the Proposal on Replacing the Self-raised Fund for the Investment Project with the Raised Capital as
reviewed and approved at the 5th meeting of the Eighth Board of Directors, the Company decided to replace the
self-raised fund as put into previously and the amount of the raised capital for the replacement was RMB 63.5839
million. Ended June 30, 2016, the Company finished the replacement with the raised capital. The replacement did not
conflict with the implementation plan for the projects invested with the raised capital from the non-public issuing and
did not affect the normal operation of the projects invested with the raised capital. There existed no such situation of
changing in disguised form the investment orientation for the raised capital which may harm the shareholders’ interest.
The time distance of the replacement from the arrival of the proceeds at the account was less than 6 months.
Provisional Inapplicable
replenishment of the
working capital with the
idle raised capital
Amount of balance of the Inapplicable
raised capital in project
implementation and the
cause
Application and the place
of going of the raised Inapplicable
capital not yet used
Problems and other
conditions existing in
Inapplicable
application of the 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 RMB
Leading
Company Sectors Registered Net assets Operating
Company type products and Total assets Turnover Net profit
Names engaged in capital profit
services
Shenzhen Subsidiary Retail Mainly 600,000,000( 1,962,164,60 736,548,679. 965,848,684. 23,798,142 19,873,414.85
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
Harmony engaged in RMB) 9.51 35 25 .06
World sales of
Watches world
Center Co., famous
Ltd. brand watch,
including
purchase,
sales and
maintenance
service of
timepieces
and parts
Sales and
repairing of
watches and
FIYTA Sales Subsidiary spares and 450,000,000( 805,923,498. 418,102,818. 458,389,161. 6,933,246.
Retail 7,298,365.59
Co., Ltd. parts and RMB) 44 49 42 52
sales of
jewelry and
ornments
Mainly
engaged in
production
and sales of
FIYTA
watches,
Shenzhen
including
FIYTA
production
Sophisticate 10,000,000( 144,969,139. 52,210,581.0 173,311,487. 42,192,630
Subsidiary Manufacture and 36,256,206.62
d Timepieces RMB) 05 9 69 .66
maintenance
Manufacture
of clocks and
Co., Ltd.
watches, and
driving units,
spares and
parts,
sophisticated
timepieces
R & D,
Shenzhen
production
FIYTA
and sales of 10,000,000( 86,972,887.1 58,222,410.4 64,711,454.1 4,085,040.
Technology Subsidiary Manufacture 3,516,637.24
watches, RMB) 8 4 1 83
Development
production,
Co., Ltd.
machining,
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
sales and
technology
development
of
sophisticated
parts.
Mainly
engaged in
trade and
FIYTA (Hong
overseas 115,060,000( 455,027,208. 210,015,734. 55,415,710.6 -5,590,444
Kong) Subsidiary Retail -6,061,994.03
market HKD) 59 38 5 .75
Limited
development
of FIYTA
watches
Sales of
clocks and
watches and
Shenzhen gifts and
Symphony consultation 5,000,000(R
Subsidiary Retail 3,340,871.76 2,925,047.34 2,365,470.10 461,232.89 461,232.89
Trading Co., of relevant MB)
Ltd. information
and other
domestic
trading
Shanghai Mutual Sales of
Watch shareholding watches and 15,350,000( 101,469,978. 95,670,740.6 38,165,667.5
Manufacture 918.36 688.77
Industry Co., company spares and RMB) 50 5 6
Ltd. parts
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
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
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
2015 Profit Distribution Plan was reviewed and approved at the 6th meeting of the Eighth Board of Directors held on March
8, 2016 and 2015 Annual General Meeting held on May 20, 2016. It was resolved that with the share capital as at January
15, 2016 totaling 438,744,881 shares as the base, the Company was to distribute cash dividend to the whole
shareholders at rate of RMB1.00 (with tax inclusive) for every 10 shares and bonus shares at the rate of 0 share and no
reserve was converted into the share capital. The profit distribution plan was finished in implementration by June 28, 2016.
For the detail, refer to the Announcement on the Implementation of the Equity Distribution of Year 2015 No. 2016-024.
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 expressing
Yes
their opinions and appeal and has their legal interests have
been fully protected:
Are any adjustment or alteration, conditions and procedures
Inapplicable
of the cash dividend policy in compliance or transparent:
X. Preplan for Profit Distribution and Conversion of Capital Reserve into Share
Capital
XI. Statement of such activities as reception, research, communication, interview in
the reporting period
Inapplicable
19
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Section 5 Significant Events
I. Overview of the Corporate Governance
The Company continuously improved the Company’s corporate governance structure, established the modern enterprise
system, and standardized the company operation. As a result, there existed no discrepancy between the situation of the
Company’s corporate governance and the requirements of the regulatory documents of China Securities Regulatory
Commission concerning governance of listed companies.
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
VII. Material Related Transactions
1. Related transactions in connection with daily operation
20
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Amount Proportio
Principle Way of
Descripti of the n in the Similar
of pricing Price of Amount
Has it settleme
Type of on of related amount of market Disclos
exceede
Related Relations of the related transacti nt for the Disclosur
d the
related Related transacti of the ons price ure
Parties hip related transacti amount related e date
approved
parties Transacti on (in similar (in RMB approved obtainabl index
transacti ons ? transacti
10,000)
ons RMB transacti e
ons on
10,000) ons (%)
Shopping Bank
Rainbow www.c
Common Sales mall Negotiat Inapplica account Inapplica March
Superma 80.49 3.17% No ninfo.c
controller costs expense ed price ble transfere ble 10, 2016
rket om.cn
s nce
Administr Bank
Property www.c
CATIC Common ative Negotiat Inapplica account Inapplica March
manage 135.63 5.37% No ninfo.c
Property controller expense ed price ble transfere ble 10, 2016
ment fee om.cn
s etc. nce
Shenzhe
n CATIC Bank
Construc www.c
Building Common Engineeri Negotiat Inapplica account Inapplica March
tion-in-pr 89.09 3.53% No ninfo.c
Technolo controller ng fee ed price ble transfere ble 10, 2016
ocess om.cn
gy Co., nce
Ltd.
Revenue Bank
Rainbow www.c
Common from Sales of Negotiat Inapplica account Inapplica March
Superma 3,537.84 2.39% No ninfo.c
controller principal goods ed price ble transfere ble 10, 2016
rket om.cn
business nce
Aviation
Revenue Bank
Industry www.c
Eventual from Sales of Negotiat Inapplica account Inapplica March
Corporati 9.22 0.01% No ninfo.c
controller principal goods ed price ble transfere ble 10, 2016
on of om.cn
business nce
China
Revenue Bank
Shennan www.c
Common from Sales of Negotiat Inapplica account Inapplica March
Circuit 332.67 16.92% No ninfo.c
controller principal goods ed price ble transfere ble 10, 2016
Co., Ltd. om.cn
business nce
Revenue Bank
CATIC www.c
Common from Property Negotiat Inapplica account Inapplica March
Real 80 1.63% No ninfo.c
controller principal lease ed price ble transfere ble 10, 2016
Estate om.cn
business nce
CATIC Common Revenue Property Negotiat Inapplica Bank Inapplica March www.c
374.54 7.62% No
Property controller from lease ed price ble account ble 10, 2016 ninfo.c
21
FIYTA Holdings Ltd. 2016 Semi-Annual Report
principal transfere om.cn
business nce
CATIC Revenue Bank
www.c
Securitie Common from Property Negotiat Inapplica account Inapplica March
57.85 1.18% No ninfo.c
s Co., controller principal lease ed price ble transfere ble 10, 2016
om.cn
Ltd. business nce
Shenzhe
n CATIC
Revenue Bank
City www.c
Common from Property Negotiat Inapplica account Inapplica March
Property 29.28 0.60% No ninfo.c
controller principal lease ed price ble transfere ble 10, 2016
Develop om.cn
business nce
ment
Co., Ltd.
Shenzhe
n CATIC Revenue Bank
www.c
City Common from Property Negotiat Inapplica account Inapplica March
1.18 0.02% No ninfo.c
Develop controller principal lease ed price ble transfere ble 10, 2016
om.cn
ment business nce
Co., Ltd.
Shenzhe
n CATIC
Revenue Bank
Guanlan www.c
Common from Property Negotiat Inapplica account Inapplica March
Property 4.73 0.10% No ninfo.c
controller principal lease ed price ble transfere ble 10, 2016
Develop om.cn
business nce
ment
Co., Ltd.
Xi’an Revenue Bank
www.c
Tianyue Common from Property Negotiat Inapplica account Inapplica March
230 4.68% No ninfo.c
Hotel controller principal lease ed price ble transfere ble 10, 2016
om.cn
Co., Ltd. business nce
Revenue Bank
Rainbow www.c
Common from Property Negotiat Inapplica account Inapplica March
Superma 24.28 0.49% No ninfo.c
controller principal lease ed price ble transfere ble 10, 2016
rket om.cn
business nce
Shenzhe
n CATIC
Revenue Bank
9 Square www.c
Common from Property Negotiat Inapplica account Inapplica March
Assets 17.89 0.36% No ninfo.c
controller principal lease ed price ble transfere ble 10, 2016
Manage om.cn
business nce
ment
Co., Ltd.
Shenzhe Common Revenue Property Negotiat Inapplica 72.94 1.48% No Bank Inapplica March www.c
22
FIYTA Holdings Ltd. 2016 Semi-Annual Report
n CATIC controller from lease ed price ble account ble 10, 2016 ninfo.c
City principal transfere om.cn
Investme business nce
nt Co.,
Ltd.
Shenzhe
n CATIC Revenue Bank
www.c
Theme Common from Property Negotiat Inapplica account Inapplica March
22.16 0.45% No ninfo.c
Real controller principal lease ed price ble transfere ble 10, 2016
om.cn
Estate business nce
Co., Ltd.
Ganzhou
CATIC
Bank
Real www.c
Common Sales Property Negotiat Inapplica account Inapplica March
Estate 53.14 1.68% No ninfo.c
controller costs lease ed price ble transfere ble 10, 2016
Develop om.cn
nce
ment
Co., Ltd.
Jiujiang
CATIC
Bank
City Real www.c
Common Sales Property Negotiat Inapplica account Inapplica March
Estate 13.86 0.44% No ninfo.c
controller costs lease ed price ble transfere ble 10, 2016
Develop om.cn
nce
ment
Co., Ltd.
Shenzhe
n CATIC
Changtai Bank
www.c
Investme Common Sales Property Negotiat Inapplica account Inapplica March
14.27 0.45% No ninfo.c
nt controller costs lease ed price ble transfere ble 10, 2016
om.cn
Develop nce
ment
Co., Ltd.
CATIC
City Bank
www.c
Property Common Sales Rental Negotiat Inapplica account Inapplica March
9.37 0.30% No ninfo.c
(Kunsha controller costs fee ed price ble transfere ble 10, 2016
om.cn
n) Co., nce
Ltd.
Chengdu Bank www.c
Common Sales Rental Negotiat Inapplica Inapplica March
CATIC 0.04 0.00% No account ninfo.c
controller costs fee ed price ble ble 10, 2016
Real transfere om.cn
23
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Estate nce
Develop
ment
Co., Ltd.
Total -- -- 5,190.47 -- 0 -- -- -- -- --
Details of large amount of sales returns Inapplicable
Actual implementation of the routine
related transactions incurred during the
reporting period whose total amount had Inapplicable
been predicted based on the categories
(if any)
Cause of bigger difference between the
bargain price and the market reference Inapplicable
price (if any)
2. Repated transactions in connection with assets acquisition and sale
Inapplicable
3. Related transaction in connection joint external investment
Inapplicable
4. Related credits and debts
Credit due from related parties:
Newly
Amount
Does there increased Interest in
Opening recovered in
exist amount in the the reporting Ending
Related Causes of balance (in the reporting
Relationship non-operation reporting Interest rate period balance (in
parties formation RMB10,000) period (in
capital period (in RMB10,000)
RMB10,000)
occupancy? (in RMB10,000)
RMB10,000)
Rainbow Common Payment for
No 801.28 4,139.28 3,695.9 1,244.66
Supermarket controller goods
Shennan
Common Payment for
Circuit Co., No 147.4 389.23 427.92 108.71
controller goods
Ltd.
Ganzhou
CATIC 9 Common Payment for
No 28.96 0 13.92 15.04
Square controller goods
Commerce
24
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Co., Ltd.
Aviation
Industry Eventual Payment for
No 1.35 10.79 8.96 3.18
Corporation controller goods
of China
Shennan
Common Payment for
Circuit Co., No 569.78 0 299.26 270.52
controller goods
Ltd.
Rainbow Common Shopping
No 56.31 14.5 0 70.81
Supermarket controller mall deposit
CATIC Common
Rental No 22.59 27.86 0 50.45
Property controller
Ganzhou
CATIC 9
Common Rental
Square No 12.27 0 12.27 0
controller deposit
Commerce
Co., Ltd.
Chengdu
CATIC Real
Common Rental
Estate No 11.56 0 11.56 0
controller deposit
Development
Co., Ltd.
Shenzhen
CATIC
Changtai Common Rental
No 5 0 0 5
Investment controller deposit
Development
Co., Ltd.
Jiujiang
CATIC City
Common Rental
Real Estate No 5 0 0 5
controller deposit
Development
Co., Ltd.
CATIC City
Property Common Rental
No 3.71 0.5 0 4.21
(Kunshan) controller deposit
Co., Ltd.
Ganzhou
CATIC Real Common Rental
No 0 12.27 0 12.27
Estate controller deposit
Development
25
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Co., Ltd.
Shenzhen
CATIC City
Common Rental
Property No 0 9.75 0 9.75
controller deposit
Development
Co., Ltd.
Shenzhen
CATIC
Common Rental
Theme Real No 0 7.76 0 7.76
controller deposit
Estate Co.,
Ltd.
Shenzhen
CATIC Group
Common
Enterprise Training fee No 0 15 0 15
controller
Training
Center
Influence of the related
rights of credit and liabilities
upon the Company’s Inapplicable
operation results and
financial position
Due to related parties:
Amount newly
Amount repaid Interest
Opening increased in Ending
Causes of in the reporting in the reporting
Related Parties Relationship balance (in the reporting Interest rate balance (in
formation period(in period(in
RMB10,000) period(in RMB10,000)
RMB10,000) RMB10,000)
RMB10,000)
Rent
CATIC Real Common
received in 13.38 0 0 13.38
Estate controller
advance
Rent
Rainbow Common
received in 0 3.91 0 3.91
Supermarket controller
advance
Shenzhen
Rent
CATIC City Common
received in 0 0.2 0 0.2
Development controller
advance
Co., Ltd.
Rent
CATIC Common
received in 0 4.52 0 4.52
Property controller
advance
CATIC Common Rental 47.2 0 0 47.2
26
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Property controller deposit
CATIC Real Common Rental
42.48 0 0 42.48
Estate controller deposit
Shenzhen
CATIC City Common Rental
24.41 0 0 24.41
Investment controller deposit
Co., Ltd.
CATIC
Common Rental
Securities Co., 18.74 0 0 18.74
controller deposit
Ltd.
Shenzhen
CATIC City
Common Rental
Property 9.79 0 0 9.79
controller deposit
Development
Co., Ltd.
Shenzhen
CATIC Theme Common Rental
7.38 0 0 7.38
Real Estate controller deposit
Co., Ltd.
Shenzhen
CATIC 9
Common Rental
Square Assets 6.06 0 0 6.06
controller deposit
Management
Co., Ltd.
Rainbow Common Rental
6 0 0 6
Supermarket controller deposit
Chengdu
CATIC Real
Common Rental
Estate 1.65 0 1.65 0
controller deposit
Development
Co., Ltd.
Shenzhen
CATIC Building Common Rental
0.96 1.42 0 2.38
Technology controller deposit
Co., Ltd.
Shenzhen
CATIC City Common Rental
0.4 0 0 0.4
Development controller deposit
Co., Ltd.
Influence of the related
Inapplicable
liabilities upon the Company’s
27
FIYTA Holdings Ltd. 2016 Semi-Annual Report
operation 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 RMB 10,000
Outward guarantees (excluding guarantee to the subsidiaries)
Date of the
Date of Guarantee
announceme Implement
Guarantee occurrence (date Actual amount of Type of Guarantee to related
Names of Gurantees nt on the ation
line of agreement guarantee guarantee period party?
guarantee status
execution) (Y/N)
line
Guarantees between the Company and the Subsidiaries
Date of the
Date of Guarantee
announceme Implement
Names of Guarantee occurrence (date Actual amount of Type of Guarantee to related
nt on the ation
Guarantees line of agreement guarantee guarantee period party?
guarantee status
execution) (Y/N)
line
Shenzhen Harmony March 12, 30,000 November 20, 5,000 Guarantee 3 years No No
28
FIYTA Holdings Ltd. 2016 Semi-Annual Report
World Watches 2015 2015 with joint
Center Co., Ltd. responsibility
Shenzhen Harmony Guarantee
March 12,
World Watches 30,000 December 2, 2015 6,000 with joint 3 years No No
2015
Center Co., Ltd. responsibility
Shenzhen Harmony Guarantee
March 12,
World Watches 10,000 December 2, 2015 5,000 with joint 3 years No No
2015
Center Co., Ltd. responsibility
Shenzhen Harmony Guarantee
March 12, December 30,
World Watches 40,000 10,000 with joint 3 years No No
2015 2015
Center Co., Ltd. responsibility
Guarantee
FIYTA (Hong Kong) March 1,
11,965.8 July 11, 2013 4,273.5 with joint 3 years No No
Limited 2013
responsibility
Guarantee
FIYTA (Hong Kong) March 1,
11,965.8 August 5, 2013 4,273.5 with joint 3 years No No
Limited 2013
responsibility
Guarantee
FIYTA (Hong Kong) March 1,
11,965.8 January 6, 2014 1,709.4 with joint 3 years No No
Limited 2013
responsibility
Guarantee
FIYTA (Hong Kong) February 28,
11,965.8 March 3,2014 1,716.4 with joint 3 years No No
Limited 2014
responsibility
Guarantee
FIYTA (Hong Kong) March 12, September 16,
6,837.6 1,970.81 with joint 1 year No No
Limited 2015 2015
responsibility
Guarantee
FIYTA (Hong Kong) March 10,
6,837.6 July 10, 2015 598.29 with joint 1 year No No
Limited 2016
responsibility
Guarantee
FIYTA (Hong Kong) March 10,
6,837.6 May 18, 2016 358.97 with joint 1 year No No
Limited 2016
responsibility
Guarantee
FIYTA (Hong Kong) March 12,
6,837.6 June 8, 2016 406.38 with joint 1 year No No
Limited 2015
responsibility
Total guarantee quota to the
Total amount of guarantee to the
subsidiaries approved in the
6,837.6 subsidiaries actually incurred in 765.35
reporting period (B1)
the reporting period (B2)
Total guarantee quota to the 98,803.4 Total balance of actual guarantee 41,307.25
29
FIYTA Holdings Ltd. 2016 Semi-Annual Report
subsidiaries approved at the end of to the subsidiaries at the end of
the reporting period (B3) the reporting period (B4)
Guarantees among Subsidiaries
Date of the
Date of Guarantee
announceme Implement
Names of Guarantee occurrence (date Actual amount of Type of Guarantee to related
nt on the ation
Guarantees line of agreement guarantee guarantee period party?
guarantee status
execution) (Y/N)
line
The Company’s total guarantee (i.e. total of the first three main items)
Total amount of guarantee
Total guarantee quota approved in
the reporting period (A1+B1+C1) 6,837.6 actually incurred in the reporting 765.35
period (A2+B2+C2)
Total guarantee quota already Total balance of the actual
approved at the end of the reporting 98,803.4 guarantee at the end of the 41,307.25
period (A3+B3+C3) reporting period (A4+B4+C4)
Proportion of the actual guarantees in the Company’s net assets
17.76%
(namely A4+B4+C4)
Including:
Amount of guarantees offered for the shareholder(s), actual
controller and their related parties (D) 0
Amount of guarantee offered directly or indirectly for the liabilities
owed by the warrantee whose asset-liability ratio exceeds 70% (E) 0
Amount of guarantee with the total guarantee exceeding 50% of the
net assets (F)
0
Total amount of the aforesaid three items of guarantee (D+E+F) 0
Description of the possibility of bearing joint repayment liability due to
Inapplicable
undue guarantee (if any)
Description of external guarantee against the specified procedures (if
Inapplicable
any)
Description of the guarantee with complex method
Inapplicable
(1) Outward guarantee against the regulations
Inapplicable
3. Other Important Contracts
Inapplicable
4. Other Important Transactions
Inapplicable
30
FIYTA Holdings Ltd. 2016 Semi-Annual Report
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 Implementation
Commitments Promiser Commitment type Commitment time
deadline status
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
Commitmentof
the investors of
the non-public
issuing - Caitong
Fund
Management
Co., Ltd.,
Caitong
MANULIFE
Fund Managemen
TEDA Fund
t Co., Ltd.;
Management
MANULIFE TEDA
Co, Ltd., Xizang
Fund
Investment Co.,
Management Co,
Ltd., Golden
Ltd.;
Eagle Asset
Xizang Investmen In process of
Commitment made at IPO or re-financing Management January 15, 2016 1 year
t Co., Ltd.; implementation
Co.,Ltd., Sws Mu
Golden Eagle
Fund
Asset Manageme
Management
nt Co.,Ltd.; Sws
Co., Ltd: the
Mu Fund
shares
Management Co.,
subscribed by
Ltd
them from the
non-public
issuing shall not
be transferred in
12 months
commencing
from the dater of
listing.
Other commitments to the minority
shareholders
31
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Has the commitment been timely
Yes
implemented?
The specific cause of failure in implementation
Inapplicable
and the next plan (if any)
XI. Engagement/Disengagement of CPAs
Has the semi-annual financial report been audited?
No
XII. Punishment and Rectification
Inapplicable
XIII. Disclosure of the Delisting Risk due to Breach of Law/Regulations
Inapplicable
XIV. Notes to Other Significant Events
1. About Non-public Issuing of A-shares
The 18th meeting of the Seventh Board of Directors held on April 16, 2015 reviewed and approved the Proposal on the
Plan for Non-public Issuing of A-shares to the Specified Investors and other relevant proposal(s). For the detail, refer to
the Announcement on the Resolutions of the 18th Meeting of the Seventh Board of Directors. 2015-008;
On June 2, 2015,the Company received the Official Reply to some Issues concerning Non-public Issuing of A-shares by
FIYTA Holdings Ltd. (GUO ZI CHAN QUAN [2015] No. 415 from the State-owned Assets Supervision and Administration
Commission of the State Council. For the detail, refer to the Announcement on the Official Reply of the State-owned
Assets Supervision and Administration Commission of the State Council to some Issues concerning Non-public Issuing
2015-08 disclosed on Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn.
2014 Annual General Meeting held on June 17, 2015 reviewed and approved the Proposal on the Plan for Non-public
Issuing of A-shares to the Specified Investors and other relevant proposals, for the detail, refer to the Announcement on
the Resolution of 2014 Annual General Meeting 2015-020 disclosed on Securities Times, Hong Kong Commercial Daily
and www.cninfo.com.cn.
On July 1, 2015, the Company received the Notice of China Securities Regulatory Commission on Accepting the
Application for Administrative Licensing issued by China Securities Regulatory Commission (CSRC) (No. 152013). For
the detail, refer to the Announcement on Accepting Application for Non-public Issuing of A-shares by China Securities
Regulatory Commission 2015-021 disclosed on Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn;
On September 8, 2015, the Company received the Notice on the Feedback Opinions of China Securities Regulatory
Commission on Examination of the Administrative Licensing Project (No. 152013). For the detail, refer to the
Announcement on the Receiving of the Notice on the Feedback Opinions of China Securities Regulatory Commission on
32
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Examination of the Administrative Licensing Project 2015-034 disclosed on Securities Times, Hong Kong Commercial
Daily and www.cninfo.com.cn;
The Company and the relevant intermediary carefully studied and implemented the Feedback Opinions, supplemented
the materials and submitted reply to the questions according to the requirements of the Feedback Opinions. For the detail,
refer to the Announcement on the Reply to the Feedback Opinoins on the Application for Non-public Issuing of A-shares
2015-035, disclosed on Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn;
The 17th meeting of the Seventh Board of Directors and 2014 Annual General Meeting reviewed and approved the Profit
Distribution Plan for Year 2014. According to the relevant provisions of the Rules for Implementation on Non-public
Issuing of Listed Companies, etc., if the Company had ex-rights/ex-dividend events such as dividend distribution, bonus
shares distribution, conversion of capital reserve into share capital, etc., during the period from the pricing benchmark to
the issuing day, the issuing price would be adjusted correspondingly. Within the authorization by the Board of Directors,
the Company made adjustment of the plan of the non-public issuing of A-shares. For the detail, refer to the
Announcement on Adjustment of the Issuing Price and Issuing Volume of the A-shares to be Issued in a Non-public Way
2015-036, disclosed on Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn.
In compliance with the Feedback Opinions, the Company disclosed the Announcement on the Indication of Risk of
Diluting the Immediate Returns from the Non-public Issuing and the Measures the Company Intends to Take 2015-037
and the Announcement on the Penalty Given or Supervision Measures Taken by the Securities Regulatory Authority and
the Stock Exchange in the Past Five Years 2015-038;
On October 30, 2015, the application for non-public issuing of A-shares was approved by CSRC Securities Issuance
Examination Committee. For the detail, refer to the Announcement on Appoval of the Application for Non-public Issuing of
A-shares by CSRC Securities Issuance Examination Committee, 2015-042;
On November 17, 2015, the Company received the Official Reply to FIYTA Holdings Ltd. for Approval of Non-public
Issuing of Shares of (ZHENG JIAN XU KE [2015]No. 2588). For the detail, refer to the Announcement on Approval of the
Application for Non-public Issuing of A-shares by China Securities Regulatory Commission 2015-043;
On January 15, 2016, the Company’s A-shares issued in a non-public way got listed with Shenzhen Stock Exchange and
the Company published the announcement for listing and the announcement on the related commitments. For the detail,
refer to the Report on the Non-public Issuing and Announcement on Listing 2016-003 and the Announcement on the
Commitments for the Shares Issued in a Non-public Way 2016-004.
2. Amendment of Articles of Association
The 5th meeting of the Eighth Board of Directors held on January 19, 2016 and 2015 Annual General Meeting held on
May 20, 2016 reviewed and approved the Proposal on Amendment of the Articles of Association. For the detail, refer to
the Announcement on the Resolutions of the 5th meeting of the Eighth Board of Directors 2016-005, the Announcement
on the Resolution of 2015 Annual General Meeting 2016-025 and the Bill of Amendment of the Articles of Association
disclosed on Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn.
3. Redemption of Company Bonds
The 4th meeting of the Eighth Board of Directors held on January 8, 2016 reviewed and approved the Proposal on the
33
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Issuer to Exercise the Redemption Option for “12 YA DA ZHAI” Company Bond, for which the Company published
indicative announcements repsectively on January 13, 2016, January 22, 2016, February 2, 2016 and February 23, 2016.
For the detail, refer to the Announcement on Giving up the Option of Adjusting High the Nominal Interest Rate and the
Investors’ Redemption Option & Exercising the Issuer’s Redemption Option for “12 YA DA ZHAI” Company Bond
2016-0016, the First Indicative Announcement on Redemption & Delisting of “12 YA DA ZHAI” Company Bond 2016-002,
the Second Indicative Announcement on Redemption & Delisting of “12 YA DA ZHAI” Company Bond 2016-010, the Third
Indicative Announcement on Redemption & Delisting of “12 YA DA ZHAI” Company Bond 2016-011 and the Fourth
Indicative Announcement on Redemption & Delisting of “12 YA DA ZHAI” Company Bond 2016-012, which were all
disclosed on Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn. Implementation of the redemption
of the company bonds was completed on February 29, 2016.
4. Special Project of Investor-Protection Oriented “Blue Sky Action”
For the purpose of implementing the Circular of CSRC Shenzhen Office on Carrying out the Special Project of
Investors-Protection Oriented “Blue Sky Action” (SHEN ZHENG JU FA [2016] No. 15) and further reinforcing the work of
protecting the investors, establishing and improving the management mechanism of paying back the investors so as to
help investors in building up a principle of reasonable investment and long term investment, improve their awareness of
risks and ability of self-protection, and promote value maximization for the investors, the Company worked out a Plan for
Implementing the Special Project of Investors-Protection Oriented “Blue Sky Action”. During the reporting period, this
special project was carried forward steadily strictly according to the said implementation plan.
XV. Information in Connection with Company Bonds
Did there exist any company bonds which were issued publically and listed with stock exchange but undue as at the date
when this Semi-annual Report was approved or had not been all honored upon maturity?
No.
34
FIYTA Holdings Ltd. 2016 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
Proportion New Bonus converted Proportion
Quantity Others Sub-total Quantity
(%) issuing shares from (%)
reserve
I. Restricted shares 49,733 0.01% 45,977,011 0 0 0 45,977,011 46,026,744 10.49%
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% 45,977,011 0 0 0 45,977,011 46,026,744 10.49%
Including: Domestic corporate
0 0.00% 45,977,011 0 0 0 45,977,011 45,977,011 10.48%
shares
Shares held by domestic
49,733 0.01% 0 0 0 0 0 49,733 0.01%
natural persons
4、Foreign invested shares 0 0.00% 0 0 0 0 0 0 0.00%
Including: Foreign corporate
0 0.00% 0 0 0 0 0 0 0.00%
shares
Shares held by foreign
0 0.00% 0 0 0 0 0 0 0.00%
natural persons
392,718,13 392,718,13
II. Non-restricted shares 99.99% 0 0 0 0 0 89.51%
7 7
311,070,13 311,070,13
1. RMB ordinary shares 79.20% 0 0 0 0 0 70.90%
7 7
2. Foreign invested shares
81,648,000 20.79% 0 0 0 0 0 81,648,000 18.61%
listed in Mainland China
3、Foreign invested shares
0 0.00% 0 0 0 0 0 0 0.00%
listed abroad
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
392,767,87 438,744,88
III. Total shares 100.00% 45,977,011 0 0 0 45,977,011 100.00%
0 1
Causes of Change of Shares
In 2015, the Company issued 45,977,011 shares in a non-public way which got listed with Shenzhen Stock Exchange on
January 15, 2016. The new shares were not allowed to be listed for trading or assigned within 12 months from the first day
of listing. Ended the day of disclosing the Report, the Company had totally 438,744,881 shares, including 46,026,744
35
FIYTA Holdings Ltd. 2016 Semi-Annual Report
restricted shares and 392,718,137 negotiable shares.
Approval of Change of the Shares
The Company held the 18th meeting of the Seventh Board of Directors and 2014 Annual General Meeting respectively on
April 16, 2015 and June 17, 2015. The meetings reviewed and approved the proposal on non-public issuing of A-shares to
the designated investors. The application for non-public issuing of A-shares was approved by CSRC Securities Issuance
Examination Committee on October 30, 2015; on November 17, 2015, the Company received Official Reply to FIYTA
Holdings Ltd. on Approval for Non-public Issuing ( ZHENG JIAN XU KE [2015] No. 2588 on November 17, 2015,
according to which the Company was approved to issue new shares with size not exceeding 46,911,649 shares.
The total number of A-shares actually issued in a non-public way this time was 45,977,011 shares.
Transfer of the Shares Newly Issued
Inapplicable
Influence of the change of the shares upon such financial indicators as the basic EPS and diluted EPS, net asset
value per share attributable to the common stockholders in the past year and the latest period
In the reporting period, the Company completed the non-public issuing of A-shares in the reporting period. At the end of
the reporting period, the EPS and ROE were calculated based on the weighted average.
EPS
ROE, Weighted average (%) Basic EPS (RMB/share) Diluted EPS (RMB/share)
2016 semi-annual 2015 semi-annual 2016 semi-annual 2015 semi-annual 2016 semi-annual 2015 semi-annual
2.59% 4.36% 0.1379 0.1861 0.1379 0.1861
Other information the Company considers it necessary or required by the securities regulatory authority to be
disclosed.
Inapplicable
Explanation to the change of the Company’s total shares and the strucutre and the change of the company’s
asset and liability structure arising therefrom
Ended December 22, 2015, the Company finished the work of non-public issuing of 45,977,011 A-shares to the specified
investors. After completion of the work, the Company’s registered capital newly increased by RMB 45,977,011, the
registered capital turned to be RMB 438,744,881, the capital reserve increased to RMB 536,947,362.62, the proportion of
the shares held by the controlling shareholder decreased from 41.49% to 37.15%. The Company’s asset-liability ratio
before the non-pubic issuing was 55.27% and the Company’s asset-liability ratio after the non-pubic issuing ended June
30, 2016 was 41.96%. The newly issued shares got listed with Shenzhen Stock Exchange on January 15, 2016.
II. Number of Shareholders and Shareholding
In shares
Total shareholders of preferred
Total shareholders of ordinary
shares (if any) whose voting
shares at the end of the 35,906 0
power has been recovered in the
reporting period
reporting period (refer to Note 8)
36
FIYTA Holdings Ltd. 2016 Semi-Annual Report
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
Shareholder’s 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 State corporate 162,977, 162,977,3
37.15% 0 0
Holdings shareholder 327 27
Limited
Golden
Eagle-Minshen
g Bank-Golden
Domestic
Eagle-Wens –
non-state 9,131,23 4,674,32
Junye Flexible 2.08% 0 4,456,903
corporate 2 9
Configuration
shareholder
No. 3 Assets
Management
Plan
Manulife Teda
Fund –
Minsheng
Bank -
Manulife Teda Domestic
Value Growth non-state 9,093,25 9,093,25
2.07% 0 0
Oriented corporate 9 9
additional shareholder
issuance No.
351 Asset
Management
Plan
Sws Mu
Assets-China
Merchants
Domestic
Bank – China
non-state 8,429,11 8,429,11
Resources 1.92% 0 0
corporate 8 8
Szitic Trust –
shareholder
Ruihua Fixed
Growth Hedge
Fund No. 2
37
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Assembled
Funds Trust
Plan
Tibet
Autonomous
State corporate 4,976,55 4,976,55
Region 1.13% 0 0
shareholder 1 1
Investment
Co., Ltd.
Manulife Teda
Fund – ICBC –
Manulife Teda
Domestic
International
non-state 4,546,63 4,546,63
Trade Orient 1.04% 0 0
corporate 0 0
Dingzengbao
shareholder
No. 1 Assets
Management
Plan
China
Life Insurance
Company
Domestic
Ltd. –
non-state 3,500,00
Dividend – 0.80% 461,000 0 3,500,000
corporate 0
Personal
shareholder
Dividend -
005L-FH002
Shen
China Life
Insurance(Gro
Domestic
up) Company –
non-state 2,773,80
Traditional – 0.63% 2,773,800 0 2,773,800
corporate 0
General
shareholder
Insurance
Product
Domestic natural 2,009,32
Dai Wen 0.46% 0 0 2,009,321
person 1
Essence
International
Overseas 2,000,00
Securities 0.46% -610,000 0 2,000,000
corporate 0
(Hong Kong)
Limited
About the fact that a strategic Of the top ten shareholders, Golden Eagle-Minsheng Bank-Golden Eagle-Wens – Junye Flexible
investor or ordinary corporate Configuration No. 3 Assets Management Plan, Manulife Teda Fund – Minsheng Bank - Manulife Teda
38
FIYTA Holdings Ltd. 2016 Semi-Annual Report
became one of the top ten Value Growth Oriented additional issuance No. 351 Asset Management Plan, Sws Mu Assets-China
shareholders due to placement of Merchants Bank – China Resources Szitic Trust – Ruihua Fixed Growth Hedge Fund No. 2
new shares (if any) (Refer to Note 3) Assembled Funds Trust Plan, Tibet Autonomous Region Investment Co., Ltd. and Manulife Teda
Fund – ICBC – Manulife Teda International Trade Orient Dingzengbao No. 1 Assets Management
Plan were all the shareholders involved in the non-public issuing. The newly issued shares
subscribed by them were listed with Shenzhen Stock Exchange on January 15, 2016, and of them
the restricted shares were not allowed to be traded or assigned within 12 months commencing from
the date of listing.
Of the top ten shareholders, both Manulife Teda Fund – Minsheng Bank - Manulife Teda Value
Growth Oriented Additional Issuance No. 351 Asset Management Plan and Manulife Teda Fund –
ICBC – Manulife Teda International Trade Orient Dingzengbao No. 1 Assets Management Plan are
Explanation on associated subsidiaries of Manulife Teda Fund Management Co., Ltd. and the total 13,639,889 shares held by
relationship or consistent action of them were restricted shares issued by the Company in a non-public way. Both China
the above shareholders Life Insurance Company Ltd. – Dividend – Personal Dividend - 005L-FH002 Shen and China Life
Insurance(Group) Company – Traditional – General Insurance Product are subsidiaries of China Life
Insurance(Group) Company and the total 6,273,800 shares held by them were outstanding Renminbi
common shares.
Shareholding of top 10 shareholders of non-restricted common shares
Quantity of non-restricted common shares held at the end Share type
Shareholder’s Name of the reporting period
Share type Quantity
AVIC International Holdings Limited 162,977,327 A-shares 162,977,327
Golden Eagle-Minsheng
Bank-Golden Eagle-Wens – Junye
4,456,903 A-shares 4,456,903
Flexible Configuration No. 3 Assets
Management Plan
China Life Insurance Company Ltd. –
Dividend – Personal Dividend - 3,500,000 A-shares 3,500,000
005L-FH002 Shen
China Life Insurance(Group)
Company – Traditional – General 2,773,800 A-shares 2,773,800
Insurance Product
Dai Wen 2,009,321 A-shares 2,009,321
Essence International Securities
2,000,000 B-shares 2,000,000
(Hong Kong) Limited
China Merchants Securities (Hong
1,491,241 B-shares 1,491,241
Kong) Limited
Tang Xilong 800,000 A-shares 800,000
Ge Zhongwei 737,700 A-shares 737,700
VANGUARD TOTAL 710,020 B-shares 710,020
39
FIYTA Holdings Ltd. 2016 Semi-Annual Report
INTERNATIONAL STOCK INDEX
FUND
Explanation on the associated
relationship or consistent action
among the top 10 shareholders of Both China Life Insurance Company Ltd. – Dividend – Personal Dividend - 005L-FH002 Shen and
non-restricted common shares and China Life Insurance(Group) Company – Traditional – General Insurance Product are subsidiaries of
that among the top 10 shareholders China Life Insurance(Group) Company and the total 6,273,800 shares held by them were
of non-restricted common shares and outstanding Renminbi common shares.
top 10 shareholders of common
shares.
Note to the top 10 shareholders of
common shares involved in margin
Inapplicable
financing & securities lending (if any)
(Refer to Note 4)
Did the top ten common 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
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
There was no change in shares held by directors, supervisors and senior executives during the reporting period. For the
detail, refer to 2015 Annual Report.
II. Change of Directors, Supervisors and/or Senior Executives
Names Office Taken Type Date Cause
Du Xi Deputy GM Resignation April 29, 2016 Resigned the office of deputy GM due to
40
FIYTA Holdings Ltd. 2016 Semi-Annual Report
personal reason
Taking the office of a Company’s supervisor
Sheng Qing Supervisor Elected May 14, 2016
through election at the conference of employees.
Resigned the office of a Company’s supervisor
Tang Boxue Supervisor Resignation May 13, 2016
due to job transfer.
41
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Section 9 Financial Report
I. Auditors’ Report
Has the semi-annual report been audited
No
II. Financial Statements
The currency applied in the financial notes and statements is Renminbi.
1. Consolidated Balance Sheet
Prepared by FIYTA Holdings Ltd.
June 30, 2016
In RMB
Items Ending balance Opening balance
Current assets:
Monetary funds 498,671,980.62 638,962,875.93
Settlement Reserve
Inter-bank lending
Financial assets which were
measured based on the fair value
and its change was counted to the
current gain and loss
Derivative financial assets
Notes receivable 8,808,123.43 7,197,788.08
Accounts receivable 328,952,478.70 304,725,676.29
Prepayments 36,175,028.32 48,869,563.60
Insurance premium receivable
Reinsurance accounts
receivable
Accounts receivable
reinsurance reserve
Interest receivable
Dividends receivable
Other receivables 43,686,928.80 39,847,732.76
42
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Buying and selling back
financial assets
Inventories: 1,990,492,224.79 2,092,691,019.29
Assets classified as that held
for sale
Non-current assets due within
a year
Other current assets 11,059,605.27 15,796,773.56
Total current assets 2,917,846,369.93 3,148,091,429.51
Non-Current Assets:
Loan provision and advances
Available-for-sale financial
85,000.00 85,000.00
assets
Held –to-maturity investment
Long-term accounts receivable
Long-term equity investment 42,837,994.24 43,221,572.05
Investment based real estate 212,376,320.08 216,948,193.02
Fixed assets 353,632,933.94 361,979,828.01
Construction-in-progress 199,813,392.72 173,189,274.57
Engineering supplies
Disposal of fixed assets
Productive biological assets
Oil and gas asset
Intangible assets 37,052,737.78 36,429,626.66
Development expenses
Goodwill
Long-term expenses to be
143,037,385.47 155,704,564.39
apportioned
Deferred income tax asset 98,662,590.89 105,901,723.16
Other non-current assets 7,458,521.88 5,118,833.65
Total non-current assets 1,094,956,877.00 1,098,578,615.51
Total assets 4,012,803,246.93 4,246,670,045.02
Current liabilities:
Short-term Loan 1,183,344,590.08 988,186,200.00
Borrowings from central bank
43
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Receipt of deposits and
deposits from other banks
Loans from other banks
Financial liabilities which were
measured based on the fair value
and its change was charged to the
current gain and loss
Derivative financial liabilities
Notes payable
Accounts payable 105,071,067.57 155,939,686.54
Advance receipts 18,436,237.69 18,031,129.87
Funds from selling out and
repurchasing financial assets
Service charge and
commission payable
Salaries payable to the
17,992,470.71 39,396,747.95
employees
Taxes payable 46,655,893.08 68,921,732.81
Interest payable 1,796,860.90 19,211,630.02
Dividends payable
Other payables 39,287,003.37 48,131,616.20
Reinsurance payable
Insurance contract reserve
Funds from securities trading
agency
Funds from underwriting
securities agency
Liabilities classified as that
held for sale
Non-current liabilities due
119,728,000.00 108,914,000.00
within a year
Other current liabilities 20,876,226.66 1,988,252.38
Total current liabilities 1,553,188,350.06 1,448,720,995.77
Non-Current Liabilities:
Long term borrowings 125,845,919.44 90,994,964.33
Bonds payable 0.00 399,823,760.28
Including: preferred shares
44
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Permanent liabilities
Long term accounts payable
Long term remuneration
payable to employees
Special accounts payable
Predicted liabilities
Deferred income 4,800,000.00 4,300,000.00
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities 130,645,919.44 495,118,724.61
Total liabilities 1,683,834,269.50 1,943,839,720.38
Owner’s equity
Capital stock 438,744,881.00 438,744,881.00
Other equity instruments
Including: preferred shares
Permanent liabilities
Capital reserve 1,062,455,644.22 1,062,455,644.22
Less: shares in stock
Other comprehensive income -7,567,313.00 -17,145,189.71
Special reserve
Surplus reserve 179,743,077.15 179,743,077.15
General risk reserve
Retained earnings 652,055,768.89 635,417,237.55
Total owner’s equity attributable to
2,325,432,058.26 2,299,215,650.21
the parent company
Minority equity 3,536,919.17 3,614,674.43
Total owners’ equity 2,328,968,977.43 2,302,830,324.64
Total liabilities and owners’ equity 4,012,803,246.93 4,246,670,045.02
Legal representative: Xu Dongsheng Chief Financial Officer: Hu Xinglong Person in charge of the
Accounting Department: Tian Hui
2. Balance Sheet, Parent Company
In RMB
Items Ending balance Opening balance
45
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Current assets:
Monetary funds 298,184,475.76 513,869,824.81
Financial assets which were
measured based on the fair value
and its change was counted to the
current gain and loss
Derivative financial assets
Notes receivable
Accounts receivable
Prepayments
Interest receivable
Dividends receivable 6,344,660.36
Other receivables 1,259,869,389.83 1,527,756,817.18
Inventories:
Assets classified as that held
for sale
Non-current assets due within
a year
Other current assets 3,418,990.51 2,089,651.83
Total current assets 1,567,817,516.46 2,043,716,293.82
Non-Current Assets:
Available-for-sale financial
85,000.00 85,000.00
assets
Held –to-maturity investment
Long-term accounts receivable
Long-term equity investment 1,256,007,714.24 814,121,292.05
Investment based real estate 212,376,320.08 216,948,193.02
Fixed assets 112,785,858.61 113,553,719.50
Construction-in-progress 199,813,392.72 173,189,274.57
Engineering supplies
Disposal of fixed assets
Productive biological assets
Oil and gas asset
Intangible assets 30,733,176.08 30,104,404.98
Development expenses
Goodwill
46
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Long-term expenses to be
4,383,192.81 4,693,186.19
apportioned
Deferred income tax asset 1,081,888.10 1,081,888.10
Other non-current assets 7,458,521.88 5,118,833.65
Total non-current assets 1,824,725,064.52 1,358,895,792.06
Total assets 3,392,542,580.98 3,402,612,085.88
Current liabilities:
Short-term Loan 990,000,000.00 700,000,000.00
Financial liabilities which were
measured based on the fair value
and its change was charged to the
current gain and loss
Derivative financial liabilities
Notes payable
Accounts payable 211,339.76 23,711,339.76
Advance receipts 3,097,503.75 3,207,516.61
Salaries payable to the
966,862.72 8,188,793.56
employees
Taxes payable 3,180,971.40 2,857,031.42
Interest payable 1,458,960.18 18,170,745.35
Dividends payable
Other payables 16,075,159.62 17,550,238.03
Liabilities classified as that
held for sale
Non-current liabilities due
within a year
Other current liabilities
Total current liabilities 1,014,990,797.43 773,685,664.73
Non-Current Liabilities:
Long term borrowings 119,861,928.00 68,361,928.00
Bonds payable 399,823,760.28
Including: preferred shares
Permanent liabilities
Long term accounts payable
Long term remuneration
payable to employees
47
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Special accounts payable
Predicted liabilities
Deferred income
Deferred income tax liability
Other non-current liabilities 4,800,000.00 4,300,000.00
Total non-current liabilities 124,661,928.00 472,485,688.28
Total liabilities 1,139,652,725.43 1,246,171,353.01
Owner’s equity
Capital stock 438,744,881.00 438,744,881.00
Other equity instruments
Including: preferred shares
Permanent liabilities
Capital reserve 1,068,111,185.32 1,068,111,185.32
Less: shares in stock
Other comprehensive income
Special reserve
Surplus reserve 179,743,077.15 179,743,077.15
Retained earnings 566,290,712.08 469,841,589.40
Total owners’ equity 2,252,889,855.55 2,156,440,732.87
Total liabilities and owners’ equity 3,392,542,580.98 3,402,612,085.88
Legal representative: Xu Dongsheng Chief Financial Officer: Hu Xinglong Person in charge of the
Accounting Department: Tian Hui
3. Consolidated Profit Statements
In RMB
Items Amount incurred in the reporting period Amount incurred in the previous period
I. Gross Revenue 1,479,527,783.18 1,683,793,247.59
Including: revenue 1,479,527,783.18 1,683,793,247.59
Interest income
Earned premium
Service charge and
commission income
II. Total operating cost 1,404,258,390.87 1,590,005,469.65
Including: operating costs 881,663,280.51 1,037,981,721.35
48
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Interest payment
Service charge and
commission payment
Refunded premiums
Compensation pay-out,
net
Net amount of reserves
for reinsurance contract
Policy dividend payment
Reinsurance expenses
15. Business taxes and
13,068,582.12 15,078,616.55
surcharge
Sales expenses 378,007,640.11 386,297,227.92
Administrative expenses 94,847,009.60 100,131,176.65
Financial expenses 35,230,653.98 50,889,786.79
Loss from impairment of
1,441,224.55 -373,059.61
assets
Add: Income from change of fair
value (loss is stated with “-“)
Investment income (loss is
172.19 250,015.75
stated with “-“)
Including: income from
investment in associates and joint 172.19 250,015.75
ventures
Exchange income (loss is
stated with “-“)
III. Operating Profit (loss is stated with
75,269,564.50 94,037,793.69
“-“)
Plus: Non-operating income 1,402,360.28 1,849,835.27
Including: gain from disposal
10,960.00 69,750.00
of non-current assets
Less: Non-operating expenses 528,969.02 345,400.59
Including: Loss from
1,300.22 35,549.22
disposal of non-current assets
IV. Total profit (total loss is stated with
76,142,955.76 95,542,228.37
“-”)
Less: Income tax expense 15,779,713.54 22,261,660.23
49
FIYTA Holdings Ltd. 2016 Semi-Annual Report
V. Net Profit (net loss is stated with
60,363,242.22 73,280,568.14
“-“)
Net profit attributable to the
60,513,019.44 73,109,419.73
parent company’s owner
Minority shareholders’ gain/loss -149,777.22 171,148.41
VI. Net of other comprehensive
9,649,898.67 7,162,790.77
income after tax
Net of other comprehensive
income after tax attributable to the 9,577,876.71 7,163,176.26
parent company’s 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 re-classified 9,577,876.71 7,163,176.26
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 assets
4. Valid part of the
gain/loss from cash flow hedge
5. Conversion difference
9,577,876.71 7,163,176.26
in foreign currency statements
50
FIYTA Holdings Ltd. 2016 Semi-Annual Report
6. Others
Net other after-tax comprehensive
income attributable to minority
72,021.96 -385.49
shareholders
VII. Total comprehensive income 70,013,140.89 80,443,358.91
Total comprehensive income
attributable to the owner of the parent 70,090,896.15 80,272,595.99
company
Total comprehensive income
-77,755.26 170,762.92
attributable to minority shareholders
VIII. Earning per share:
(I) Basic earnings per share 0.1379 0.1861
(II) Diluted earnings per share 0.1379 0.1861
For the enterprises under the same control consolidated in the reporting period, the net profit realized by the consolidee
before the consolidation is RMB 0. Net profit realized by the consolidatee in the previous period is RMB 0.
Legal representative: Xu Dongsheng Chief Financial Officer: Hu Xinglong Person in charge of the
Accounting Department: Tian Hui
4. Profit Statement, Parent Company
In RMB
Items Amount incurred in the reporting period Amount incurred in the previous period
I. Revenue 49,145,205.51 47,530,000.90
Less: Business costs 6,783,241.62 6,946,511.39
15. Business taxes and
2,056,046.32 2,528,230.20
surcharge
Sales expenses 0.00
Administrative expenses 27,638,190.90 25,040,053.99
Financial expenses 6,578,866.10 189,713.16
Loss from impairment of
-434,290.83
assets
Add: Income from change of
fair value (loss is stated with “-“)
Investment income (loss
135,344,832.55 131,638,156.33
is stated with “-“)
Including: income from
172.19 250,015.75
investment in associates and joint
51
FIYTA Holdings Ltd. 2016 Semi-Annual Report
ventures
II. Operating Profit (loss is stated
141,433,693.12 144,897,939.32
with “-“)
Plus: Non-operating income 112,119.88 174,000.00
Including: gain from
disposal of non-current assets
Less: Non-operating expenses 300,000.00 14,678.42
Including: Loss from
0.00 14,678.42
disposal of non-current assets
III. Total profit (total loss is stated
141,245,813.00 145,057,260.90
with “-“)
Less: Income tax expense 922,202.22 2,907,939.50
IV. Net Profit (net loss is stated with
140,323,610.78 142,149,321.40
“-“)
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
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
52
FIYTA Holdings Ltd. 2016 Semi-Annual Report
3. Gain/loss from which
the held-to-maturity investment is
re-classified as available-for-sale
financial assets
4. Valid part of the
gain/loss from cash flow hedge
5. Conversion
difference in foreign currency
statements
6. Others
VI. Total comprehensive income 140,323,610.78 142,149,321.40
VII. Earning per share:
(I) Basic earnings per share 0.3198 0.362
(II) Diluted earnings per share 0.3198 0.362
Legal representative: Xu Dongsheng Chief Financial Officer: Hu Xinglong Person in charge of the Accounting
Department: Tian Hui
5. Consolidated Cash Flow Statement
In RMB
Items Amount incurred in the reporting period Amount incurred in the previous period
I. Net cash flows arising from
operating activities:
Cash received from sales of
1,669,094,350.46 1,830,270,229.94
goods and supply of labor
Net increase of customers’
deposit and due from banks
Net increase of borrowings
from the central bank
Net increase of borrowings
from other financial institutions
Cash received from former
insurance contract premium
Net cash received from
reinsurance business
Net increase of insurance
reserve and investment
Net increase of financial
53
FIYTA Holdings Ltd. 2016 Semi-Annual Report
assets which were measured based
on the fair value and its change was
counted to the current gain and loss
Cash received from interest,
service charge and commission
Net increase of borrowings
Net increase of fund from
repurchases
Rebated taxes received 6,421.29 0.00
Other operation activity related
13,479,123.94 14,720,508.19
cash receipts
Subtotal of cash flow in from
1,682,579,895.69 1,844,990,738.13
operating activity
Cash paid for purchase of
goods and reception of labor 905,753,936.17 1,068,142,690.95
services
Net increase of loans and
advances to customers
Net increase of due from
central bank and due from banks
Cash paid for indemnity of
original insurance contract
Cash paid for interest, service
charge and commission
Cash paid for insurance policy
dividend
Cash paid to and for staff 255,700,203.02 255,570,670.71
Taxes paid 141,464,964.05 145,291,060.41
Other business activity related
162,051,059.91 203,732,537.50
cash payments
Subtotal of cash flow out from
1,464,970,163.15 1,672,736,959.57
operating activity
Net cash flow arising from operating
217,609,732.54 172,253,778.56
activities
II. Cash flows arising from
investment activities:
Cash received from recovery
of investment
54
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Cash received from
383,750.00 0.00
investment income
Net amount of cash received
from disposal of fixed assets,
420.00 180,880.00
intangible assets and other long
term assets
Net cash received from
disposal of subsidiaries and other
operating units
Other investment related cash
receipts
Subtotal of cash flow in from
384,170.00 180,880.00
investment activity
Cash paid for
construction/purchase of fixed
101,330,436.01 111,100,428.69
assets, intangible assets and other
long term assets
Cash paid for investment
Net increase of hypothecated
loans
Net cash received from
payment by subsidiaries and other
operating units
Other investment related cash
payments
Subtotal of cash flow out from
101,330,436.01 111,100,428.69
investment activity
Net cash flow arising from
-100,946,266.01 -110,919,548.69
investment activities
III. Cash flows arising from fund
raising activities:
Cash received from absorption
of investment
Incl.: Cash received from
subsidiaries’ absorption of minority
shareholders’ investment
Cash received from
449,044,295.81 945,805,587.19
borrowings
Cash received from bond
55
FIYTA Holdings Ltd. 2016 Semi-Annual Report
issuing
Other fund-raising related cash
0.00 13,500,000.00
receipts
Subtotal of cash flow in from fund
449,044,295.81 959,305,587.19
raising activity
Cash paid for liabilities
612,200,422.81 820,307,480.05
repayment
Cash paid for dividend/profit
93,079,913.22 55,561,222.27
distribution or repayment of interest
Including: Dividend and profit
paid by subsidiaries to minority
shareholders
Other fund-raising related cash
992,669.19 100,451,008.00
payments
Subtotal of cash flow out from fund
706,273,005.22 976,319,710.32
raising activity
Net cash flow arising from
-257,228,709.41 -17,014,123.13
fund-raising activities
IV. Influence from change of
exchange rate upon cash and cash 274,347.57 -320,444.37
equivalents
V. Net increase of cash and cash
-140,290,895.31 43,999,662.37
equivalents
Plus: Opening balance of cash
637,387,875.93 114,880,070.54
and cash equivalents
VI. Ending balance of cash and cash
497,096,980.62 158,879,732.91
equivalents
Legal representative: Xu Dongsheng Chief Financial Officer: Hu Xinglong Person in charge of the
Accounting Department: Tian Hui
6. Cash Flow Statement, Parent Company
In RMB
Items Amount incurred in the reporting period Amount incurred in the previous period
I. Net cash flows arising from
operating activities:
Cash received from sales of
48,326,245.09 55,944,541.75
goods and supply of labor
56
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Rebated taxes received
Other operation activity related
297,292,855.21 2,697,740.04
cash receipts
Subtotal of cash flow in from
345,619,100.30 58,642,281.79
operating activity
Cash paid for purchase of
goods and reception of labor
services
Cash paid to and for staff 31,521,273.39 28,749,906.40
Taxes paid 4,378,264.62 5,193,858.41
Other business activity related
10,851,967.38 31,570,558.35
cash payments
Subtotal of cash flow out from
46,751,505.39 65,514,323.16
operating activity
Net cash flow arising from operating
298,867,594.91 -6,872,041.37
activities
II. Cash flows arising from
investment activities:
Cash received from recovery
of investment
Cash received from
129,383,750.00 131,388,140.58
investment income
Net amount of cash received
from disposal of fixed assets,
0.00 100,800.00
intangible assets and other long
term assets
Net cash received from
disposal of subsidiaries and other
operating units
Other investment related cash
receipts
Subtotal of cash flow in from
129,383,750.00 131,488,940.58
investment activity
Cash paid for
construction/purchase of fixed
56,582,660.00 49,328,711.80
assets, intangible assets and other
long term assets
Cash paid for investment 442,270,000.00 40,100,000.00
Net cash received from
57
FIYTA Holdings Ltd. 2016 Semi-Annual Report
payment by subsidiaries and other
operating units
Other investment related cash
payments
Subtotal of cash flow out from
498,852,660.00 89,428,711.80
investment activity
Net cash flow arising from
-369,468,910.00 42,060,228.78
investment activities
III. Cash flows arising from fund
raising activities:
Cash received from absorption
of investment
Cash received from
441,500,000.00 796,000,000.00
borrowings
Cash received from bond
issuing
Other fund-raising related cash
receipts
Subtotal of cash flow in from fund
441,500,000.00 796,000,000.00
raising activity
Cash paid for liabilities
500,000,000.00 663,000,000.00
repayment
Cash paid for dividend/profit
85,591,364.77 45,286,133.74
distribution or repayment of interest
Other fund-raising related cash
992,669.19 100,451,008.00
payments
Subtotal of cash flow out from fund
586,584,033.96 808,737,141.74
raising activity
Net cash flow arising from
-145,084,033.96 -12,737,141.74
fund-raising activities
IV. Influence from change of
exchange rate upon cash and cash
equivalents
V. Net increase of cash and cash
-215,685,349.05 22,451,045.67
equivalents
Plus: Opening balance of cash
512,294,824.81 35,485,566.79
and cash equivalents
VI. Ending balance of cash and cash
296,609,475.76 57,936,612.46
equivalents
58
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Legal representative: Xu Dongsheng Chief Financial Officer: Hu Xinglong Person in charge of the
Accounting Department: Tian Hui
7. Consolidated Statement of Changes in Owner’s Equity
Amount in the reporting period
In RMB
Reporting period
Owner’s equity attributable to the parent company
Other equity
instruments Other
Items Retain Minorit Total
Capit Prefe Less: compre Surplu Genera
Capital Special ed y owners
Perm
al rred shares hensiv s l risk
anent Other reserve reserve earning equity ’ equity
stock share in stock e reserve reserve
liabilit s s
s income
ies
I. Ending balance 438,7 1,062,4 -17,14 179,74 635,41 2,302,8
3,614,6
of the previous 44,88 55,644. 5,189.7 3,077.1 7,237.5 30,324.
74.43
year 1.00 22 1 5 5 64
Plus:
Change in
accounting policy
Correction of
previous errors
Consolidation of
enterprises
under the same
control
Others
II. Opening 438,7 1,062,4 -17,14 179,74 635,41 2,302,8
3,614,6
balance of the 44,88 55,644. 5,189.7 3,077.1 7,237.5 30,324.
74.43
reporting year 1.00 22 1 5 5 64
III.
Decrease/increa
9,577,8 16,638, -77,75 26,138,
se of the report
76.71 531.34 5.26 652.79
year (decrease is
stated with “-“)
(I) Total 9,577,8 60,513, -77,75 70,013,
comprehensive 76.71 019.44 5.26 140.89
59
FIYTA Holdings Ltd. 2016 Semi-Annual Report
income
(II) Owners’ input
and decrease of
capital
1. Common
shares
contributed by
shareholders
2. Capital
contributed by
other equity
instruments
holders
3. Amount of
payment for
shares credited
to owners’ equity
4. Others
-43,87 -43,87
(III) Profit
4,488.1 4,488.1
Distribution
0 0
1. Provision of
surplus reserve
2. Provision of
generic risk
reserve
3. Distribution to -43,87 -43,87
the owners (or 4,488.1 4,488.1
shareholders) 0 0
4. Others
(IV) Internal
carry-over of
owners’ equity
1. Conversion of
capital reserve
into capital (or
capital stock)
2. Conversion of
surplus reserve
into capital (or
60
FIYTA Holdings Ltd. 2016 Semi-Annual Report
capital stock)
3. Loss made up
with surplus
reserve
4. Others
(V) Special
reserve
1. Provision in
the report period
2. Applied in the
report period
(VI) Others
IV. Ending 438,7 1,062,4 179,74 652,05 2,328,9
-7,567, 3,536,9
balance of the 44,88 55,644. 3,077.1 5,768.8 68,977.
313.00 19.17
reporting period 1.00 22 5 9 43
Amount of Previous Year
In RMB
Previous period
Owner’s equity attributable to the parent company
Other equity
instruments Other
Items Retaine Minorit Total
Capit Prefe Less: compre Surplu Genera
Capital Special d y owners
Perm
al rred shares hensiv s l risk
anent Other reserve reserve earning equity ’ equity
stock share in stock e reserve reserve
liabilit s s
s income
ies
I. Ending 392,7 525,50 -17,60 165,91 566,81 1,636,4
3,078,
balance of the 67,87 8,281.6 9,265.2 5,466.8 9,577.3 80,287.
356.59
previous year 0.00 0 2 9 7 23
Plus:
Change in
accounting policy
Correction of
previous errors
Consolidation of
enterprises
under the same
control
61
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Others
II. Opening 392,7 525,50 -17,60 165,91 566,81 1,636,4
3,078,
balance of the 67,87 8,281.6 9,265.2 5,466.8 9,577.3 80,287.
356.59
reporting year 0.00 0 2 9 7 23
III.
Decrease/increa 45,97 536,94 666,35
464,07 13,827, 68,597, 536,31
se of the report 7,011. 7,362.6 0,037.4
5.51 610.26 660.18 7.84
year (decrease is 00 2 1
stated with “-“)
(I) Total 121,70 122,70
464,07 536,31
comprehensive 2,057.4 2,450.7
5.51 7.84
income 4 9
(II) Owners’ input 45,97 536,94 582,92
and decrease of 7,011. 7,362.6 4,373.6
capital 00 2 2
1. Common
shares 45,97 536,94 582,92
contributed by 7,011. 7,362.6 4,373.6
shareholders 00 2 2
2. Capital
contributed by
other equity
instruments
holders
3. Amount of
payment for
shares credited
to owners’ equity
4. Others
-39,27
(III) Profit 13,827, -53,104
6,787.0
Distribution 610.26 ,397.26
0
1. Provision of 13,827, -13,827
surplus reserve 610.26 ,610.26
2. Provision of
generic risk
reserve
3. Distribution to -39,27
-39,276
the owners (or 6,787.0
,787.00
shareholders) 0
62
FIYTA Holdings Ltd. 2016 Semi-Annual Report
4. Others
(IV) Internal
carry-over of
owners’ equity
1. Conversion of
capital reserve
into capital (or
capital stock)
2. Conversion of
surplus reserve
into capital (or
capital stock)
3. Loss made up
with surplus
reserve
4. Others
(V) Special
reserve
1. Provision in
the report period
2. Applied in the
report period
(VI) Others
IV. Ending 438,7 1,062,4 -17,14 179,74 635,41 2,302,8
3,614,
balance of the 44,88 55,644. 5,189.7 3,077.1 7,237.5 30,324.
674.43
reporting period 1.00 22 1 5 5 64
Legal representative: Xu Dongsheng Chief Financial Officer: Hu Xinglong Person in charge of the
Accounting Department: Tian Hui
8. Statement of Change in Owner’s Equity of the Parent Company
Amount in the reporting period
In RMB
Reporting period
Items Capital Other equity Capital Less: Other Special Surplus Retain Total
stock instruments reserve shares in compreh reserve reserve ed owners’
63
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Preferr Perma stock ensive earning equity
ed nent income s
Others
shares liabilitie
s
I. Ending balance 438,74 469,84
1,068,11 179,743, 2,156,44
of the previous 4,881.0 1,589.4
1,185.32 077.15 0,732.87
year 0 0
Plus:
Change in
accounting policy
Correction of
previous errors
Others
II. Opening 438,74 469,84
1,068,11 179,743, 2,156,44
balance of the 4,881.0 1,589.4
1,185.32 077.15 0,732.87
reporting year 0 0
III.
Decrease/increa
96,449, 96,449,1
se of the report
122.68 22.68
year (decrease is
stated with “-“)
(I) Total 140,32
140,323,
comprehensive 3,610.7
610.78
income 8
(II) Owners’ input
and decrease of
capital
1. Common
shares
contributed by
shareholders
2. Capital
contributed by
other equity
instruments
holders
3. Amount of
payment for
shares credited
64
FIYTA Holdings Ltd. 2016 Semi-Annual Report
to owners’ equity
4. Others
(III) Profit -43,874 -43,874,
Distribution ,488.10 488.10
1. Provision of
surplus reserve
2. Distribution to
-43,874 -43,874,
the owners (or
,488.10 488.10
shareholders)
3. Others
(IV) Internal
carry-over of
owners’ equity
1. Conversion of
capital reserve
into capital (or
capital stock)
2. Conversion of
surplus reserve
into capital (or
capital stock)
3. Loss made up
with surplus
reserve
4. Others
(V) Special
reserve
1. Provision in
the report period
2. Applied in the
report period
(VI) Others
IV. Ending 438,74 566,29
1,068,11 179,743, 2,252,88
balance of the 4,881.0 0,712.0
1,185.32 077.15 9,855.55
reporting period 0 8
Amount of Previous Year
In RMB
Items Previous period
65
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Other equity
instruments Other Retain
Less: Total
Capital Perma Capital compreh Special Surplus ed
Preferr shares in owners’
stock nent reserve ensive reserve reserve earning
ed Others stock equity
liabilitie income s
shares
s
I. Ending balance 392,76 384,66
531,163, 165,915, 1,474,51
of the previous 7,870.0 9,884.0
822.70 466.89 7,043.67
year 0 8
Plus:
Change in
accounting policy
Correction of
previous errors
Others
II. Opening 392,76 384,66
531,163, 165,915, 1,474,51
balance of the 7,870.0 9,884.0
822.70 466.89 7,043.67
reporting year 0 8
III.
Decrease/increa 102,87
102,872,
se of the report 2,534.4
534.40
year (decrease is 0
stated with “-“)
(I) Total 142,14
142,149,
comprehensive 9,321.4
321.40
income 0
(II) Owners’ input
and decrease of
capital
1．Common
shares
contributed by
shareholders
2. Capital
contributed by
other equity
instruments
holders
3. Amount of
payment for
66
FIYTA Holdings Ltd. 2016 Semi-Annual Report
shares credited
to owners’ equity
4. Others
(III) Profit -39,276 -39,276,
Distribution ,787.00 787.00
1. Provision of
surplus reserve
2. Distribution to
-39,276 -39,276,
the owners (or
,787.00 787.00
shareholders)
3. Others
(IV) Internal
carry-over of
owners’ equity
1. Conversion of
capital reserve
into capital (or
capital stock)
2. Conversion of
surplus reserve
into capital (or
capital stock)
3. Loss made up
with surplus
reserve
4. Others
(V) Special
reserve
1. Provision in
the report period
2. Applied in the
report period
(VI) Others
IV. Ending 392,76 487,54
531,163, 165,915, 1,577,38
balance of the 7,870.0 2,418.4
822.70 466.89 9,578.07
reporting period 0 8
67
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Legal representative: Xu Dongsheng Chief Financial Officer: Hu Xinglong Person in charge of the
Accounting Department: Tian Hui
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 People’s
Government with Document SHEN FU BAN FU [1992] No. 1259 and with China National Aero-Technology Import &
Export Corporation Shenzhen Industry & Trade Center (which was renamed as China National Aero-Technology
Corporation Shenzhen) as the sponsor.
On March 10, 1993, the Company, with approval by the People’s Bank of China Shenzhen Special Economic Zone
Branch [SHEN REN YIN FU ZI (1993) No. 070], issued publically domestic RMB based common shares (A-shares) and
RMB based special shares (B-shares). In accordance with the Approval Document of Shenzhen Municipal Securities
Regulatory Office SHEN ZHENG BAN FU [1993] No. 20 and the Approval Document of Shenzhen Stock Exchange SHEN
ZHENG SHI ZI (1993) No. 16, the Company’s A-shares and B-shares were all listed with Shenzhen Stock Exchange for
trading commencing from June 3, 1993.
On January 30, 1997, with approval by Shenzhen Municipal Administration for Industry and Commerce, the Company was
renamed as Shenzhen Fiyta Holdings Ltd.
On July 4, 1997, according to the equity assignment agreement between China National Aero-Technology Corporation
Shenzhen (CATIC Shenzhen Corporation) and CATIC Shenzhen Holdings Limited ( with original name of Shenzhen
CATIC Group Co., Ltd. (hereinafter referred to as CATIC Shenzhen), CATIC Shenzhen Corporation assigned 72.36 million
corporate shares (taking 52.24% of the Company’s total shares) to CATIC Shenzhen. From then on, the Company’s
controlling shareholder turned to be CATIC Shenzhen from CATIC Shenzhen Corporation.
On October 26, 2007, the Company implemented the equity separation reform, according to which the shareholder of the
Company’s non-negotiable shares would pay shares to the whole shareholders of negotiable shares registered on the
equity record day as designated in the equity separation reform plan at the rate of 3.1 shares for every 10 shares held by
them while the Company’s total 249,317,999 shares remained unchanged. So far, after the equity separation reform, the
proportion of the Company’s shares held by CATIC Shenzhen reduced from 52.24% to 44.69%.
On February 29, 2008, due to expansion of the Company’s business scope and with approval by Shenzhen Municipal
Administration for Industry and Commerce, the Company’s enterprise corporate business licence number was changed
from 4403011001583 into 440301103196089.
Approved by China Securities Regulatory Commission (CSRC) with the Official Reply on Approval of Non-public Issuing
of Shenzhen Fiyta Holdings Ltd., ZHENG JIAN XU KE [2010] No. 1703 and the Official Reply on the Issue of Non-Public
Issuing of Shenzhen Fiyta Holdings Ltd. by State-owned Assets Supervision and Administration Commission of the State
Council [2010] No. 430, the Company was approved to non-publically issue no more than 50 million common shares
(A-shares). After completion of non-public issuing on December 9, 2010, the Company’s registered capital increased to
RMB 280,548,479.00 and CATIC Shenzhen holds 41.49% of the Company’s equity based capital.
68
FIYTA Holdings Ltd. 2016 Semi-Annual Report
On April 8, 2011, the Company took the total share capital of 280,548,479 shares as at December 31, 2010 as the base,
converted its capital reserve into share capital at the rate of 4 shares for every 10 shares. After the conversion, the
Company’s total share capital became 392,767,870 shares.
On November 11, 2015, approved by China Securities Regulatory Commission (CSRC) with the Official Reply on
Approval of Non-public Issuing of Fiyta Holdings Ltd., ZHENG JIAN XU KE [2015] No. 2588 and the Official Reply on the
Issue of Non-Public Issuing of Fiyta Holdings Ltd. by State-owned Assets Supervision and Administration Commission of
the State Council [2015] No. 415, the Company was approved to non-publically issue no more than 46,911,649 common
shares (A-shares). After completion of non-public issuing on December 22, 2015, the Company’s registered capital
increased to RMB 438,744,881.00 and the proportion of the equity based capital held by AVIC International decreased to
37.15%.
Ended June 30, 2016, the Company accumulatively issued totally 438,744,881 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
Company’s 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,
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.
The financial statements and the notes to the financial statements were approved at the 18th meeting fo the Eighth Board
of Directors held on August 24, 2016.
For the detail, refer to Note IX. Equity in other Entities.
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.
The financial statements of the Company have been prepared on going concern basis.
69
FIYTA Holdings Ltd. 2016 Semi-Annual Report
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.
2. Operation on Going Concern Basis
The financial statements of the Company have been prepared on going concern basis.
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
These financial statements comply with the requirements of the Accounting Standards for Business Enterprises, have
truly and completely presented the consolidation and the financial position of the Company as at June 30, 2016 and the
consolidation, the operating results and consolidation, cash flows and other relevant information for the first half year of
2016.
2. Accounting period
The Group adopts a calandar year as a fiscal year, namely a year starting from the 1st January and ending at the 31st
December.
3. Operating Cycle
An operating cycle of the Group is 12 months.
4. Functional currency
The Company and its domestic subsidiaries adopt Renminbi (RMB) as the functional currency.
Except Switzerland based Montres Chouriet SA (hereinafter referred to as the Switzerland 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) Limited’s subsidiaries, NATURE ART LTD., an entity controlled by 68-Station for
special purpose (Nature Art) and PROTOP LTD (PROTOP) as its recording currency according to the major economic
environment of the place where their premises are located.
The currency adopted by the Group in preparation of the financial statements is Renminbi (RMB).
5. Accounting treatment for business combinations involving entities under common control
and not under Common control
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(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 party’s 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
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 recognized at their fair value.
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 investee’s 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
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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 acquiree’s previously-held equity except for other
comprehensive income due to the movement of net liabilities or assets in the investee’s 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
investee; and the ability to use its power over the investee to affect the amount of the investor’s 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 subsidiary’s 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 subsidiary’s 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.
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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) Acquisition of the minorities’ equity of the subsidiaries
Due to the difference between the costs of the long term equity investment newly obtained from acquisition of the
minorities’ equity and the share of the net assets of the subsidiaries enjoyable calculated based on the new additional
holding proportion which was continuously calculated starting from the date of acquisition or the date of consolidation as
well as the difference between the disposal consideration from the disposal of partial equity investment in the subsidiaries
under the condition of losing the control over them and the share of the net assets of the subsidiaries corresponding to the
long term equity investment as disposed enjoyable calculated continuously from the date of acquisition or the date of
consolidation, all the capital reserves (capital stock premium) on the consolidated balance sheet are adjusted. Should the
capital reserve is not sufficient for offsetting, the retained earnings are adjusted.
(4) 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.
The other comprehensive income in connection with the equity investment in the existing subsidiaries, etc. are transferred
to the gains and losses of the very period when the control is lost. However the other comprehensive income generated
from the change in net liabilities or net assets due to the investee’s remeasurement of the established income plan is the
exception.
(5) Disposing equity step by step until control being lost
(I) Principle of adjusting whether disposing equity step by step until control being lost belongs to “a bundled transaction”;
(II) Accounting treatment method in the parent company’s financial statements and consolidated financial statements in
case of belonging to “a bundled transaction”;
(III) Accounting treatment method in the parent company’s financial statements and consolidated financial statements in
case of not belonging to “a bundled transaction”;
In case the terms and conditions of various transactions involving disposal of equity step by step by a number of
transactions and the economic influence comply with one or more of the following conditions, the Company take a number
of transactions as a bundled transaction for accounting treatment:
① The transactions are entered into at the same time or in contemplation of each other;
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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
In case various transactions of disposing equity by step by step until the control being lost do not belong to “a bundled
transaction” in some financial statement, the carrying value of the long term equity investment corresponding to every
disposal of equity is carried forward, the balance between the consideration obtained therefrom and the carrying value of
the long term equity investment as disposed is counted to the current return on investment; in case it belongs to “a
bundled transaction”, the balance between the consideration from every disposal before losing the control and the
carrying value of the long term equity investment corresponding to the equity as disposed is recognized as other
comprehensive income first and then transferred together to the current gain and loss of losing the control.
In the consolidated financial statements, for disposing equity investment until losing control step by step, for 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 subsidary’s equity related to disposing
investment before losing control is treated as follows respectively:
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 isn’t 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;
B. its soly-assumed liabilities, and its share of any liabilities incurred jointly;
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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 RMB 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 RMB 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.
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".
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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) Recognization and derecognization 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
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.
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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 V.11). 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.
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.
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(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 isn’t 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 isn’t 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 V.10.
(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.
There’s objective evidence that the financial assets are impaired including the following observable situations:
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 can’t 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:
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- The group of financial assets of the debtor ’s ability to pay gradually deteriorates;
- The economy in the debtor’s country or region appears likely to lead to the situation that the group of financial assets can
not pay
⑦ 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;
⑧ 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.
⑨ There are other objective evidences that financial assets are impaired.
Financial asset measured at amortized cost.
If there’s 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
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 asset’s carrying amount exceeding that which would have been determined had no
impairment loss been recognized in prior years.
Available-for-sale financial assets
If there’s objective evidence that AFS financial assets are impaired, accumulated losses due to decreases in fair value
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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 there’s 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
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 RMB
800,000.00 (with RMB 800,000.00 inclusive )and other
Criteria of individually significant receivables receivables of over RMB500,000.00 (with RMB 500,000.00
inclusive) are recognized as individually significant
receivable.
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Receivables that are individually significant are subject to
separate impairment assessment, if there is objective
Measurement of individually recognized bad and doubtful evidence that the impairment occurred, recognize the
debts provision of individually significant receivables: provision for bad and doubtful debts according to the
difference between the present value of future cash flows,
which is lower, and the carrying amount.
(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
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%
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
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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:
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
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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
investment shall be the absorbing party’s 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 Group’s interest
in the fair values of the investee’s identifiable net assets, no adjustment is made to the initial investment cost; where the
initial investment cost is less than the Group’s interest in the fair values of the investee’s 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 investee’s net profit or losses, as well as its share of
the investee’s 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 Group’s share of
the investee’s owners’ equity changes, other than those arising from the investee’s 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 investee’s net profit or loss for the current period is recoginised
after adjusting the investee’s net profit in accordance with the Group’s 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
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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
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 owner’s 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.
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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.
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 isn’t 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 Group’s 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 Group’s 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
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Fixed assets are tangible assets that are held for use in the production or supply of services, for rental to others, or for
administrative purposes and have useful lives more than one accounting year. 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
(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;
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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.
(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 can’t be reliably determined is amortized using straight-line amortization; an intangible
asset with an indefinite useful life is not amortized.
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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,
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:
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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
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 can’t 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
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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.
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
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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 investee’s 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
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
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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:
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 can’t 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 isn’t 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 Group’s 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:
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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
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 related to an asset refers to the government grant obtained by the Group and used for purchase or
construction or formation in other way of long term assets. In addition, a government grant may be an income related
government grant.
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.
(2) Basis for judging income related government grants and the accounting treatment method
A government grant related to an asset refers to the government grant obtained by the Group and used for purchase or
construction or formation in other way of long term assets. In addition, there is also a government grant related to an
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.
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
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
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
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.
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31. Lease
(1) Accounting treatment method for operating lease
The Group recognizes the lease with all the risks and consideration in connection with the ownership of the asset
substantially transferred as financing lease. The leases other than financing lease are recognized as 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
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
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
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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) 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 arm’s 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.
(3) 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.
(4) 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
96
FIYTA Holdings Ltd. 2016 Semi-Annual Report
the amount of future taxable profit in order to determine the amount of deferred income tax assets to be recognized.
(5) Corporate income tax
For some transactions in the Group’s ordinary course of business, uncertainties exist in their tax treatment and calculation.
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.
(6) 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
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
Turnover tax payable 7
tax
Corporate income tax Turnover tax payable 15-30
Educational surcharges Turnover tax payable 3
Local educational surcharge Turnover tax payable 2
70% of the cost of the property, rental
Real estate tax 1.2,12
income
In case there exist any taxpayer paying corporate income tax at different tax rates, disclose the information
97
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Names of taxpayers Income tax rates
The Company (Notes ①②) 25
Shenzhen Harmony World Watches Center Co., Ltd. (Note
25
①)
Shenzhen FIYTA Sophisticated Timepieces Manufacture
15
Co., Ltd. (Manufacture Company (Note③)
FIYTA (Hong Kong) Limited (Note ⑤) 16.5
Station 68 (Note⑤) 16.5
Nature Art Limited (Note⑤) 16.5
World Watches International (Note⑤) 16.5
Shenzhen FIYTA Technology Development Co.,
15
Ltd.(Technology Company) (Notes②and ④)
Shenzhen Symphony Trading Co., Ltd. (Trading Company)
25
(Note ⑥)
Beijing Henglianda Watch Center Co., Ltd (Henglianda
25
Company) (Note ⑥)
Kunming Lishan Department Store Co., Ltd. (Lishan
25
Department Store Co.) (Note⑥)
Harbin World Watches Distribution Co., Ltd. （Harbin
25
Company) (Note⑥)
Shenzhen Harmony Culture Communication Co., Ltd
25
（Culture Company) (Note⑥)
Emile Choureit Timing (Shenzhen) Ltd. (Emile Choureit
25
Shenzhen Company) (Note⑥)
FIYTA Sales Co., Ltd.（Sales Company)(Note①⑥) 25
Liaoning Hengdarui Commercial & Trade Co., Ltd
25
（Hengdarui Company)(Note⑥)
Switzerland Company(Note⑦) 30
2. Tax Preferences
(1) Enterprise Income Tax
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
98
FIYTA Holdings Ltd. 2016 Semi-Annual Report
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.
Note ③: The company enjoys the “income tax rate exclusion of high-tech enterprises key supported by the state”.
Note ④: 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 ⑤: These companies are registered in Hong Kong and the income tax rate of Hong Kong applicable is 16.50% this
year.
Note ⑥: 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 ⑦: The tax rate of 30% is applicable for Switzerland Company as it registered in Switzerland.
(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 situated in Shenzhen are taxed according to this notice. Properties situated in other cities are
taxed according to local regulations.
3. Miscelleneous
Inapplicable
VII. Notes to items of consolidated financial statements
1. Monetary capital
In RMB
Items Ending balance Opening balance
Cash on hand 1,342,735.40 387,241.40
Bank deposit 495,748,724.36 636,995,113.67
Other monetary capital 1,580,520.86 1,580,520.86
Total 498,671,980.62 638,962,875.93
Including total amount deposited 0.00 0.00
overseas
Other note:
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
Amount of RMB1,580,520.86 in other monetary funds is the security deposit with Shenzhen Center Branch of Agricultural
Bank of China for issuing of irrevocable letter of guarantee.
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 RMB
Items Ending balance Opening balance
Bank acceptance bill 3,340,209.46 5,697,788.08
Trade acceptance bill 5,467,913.97 1,500,000.00
Total 8,808,123.43 7,197,788.08
(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 RMB
Ending balance Opening balance
Categories
Book balance Bad debt reserve Book Book balance Bad debt reserve Book
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
Provisio value value
Proporti n Amoun Proporti Provision
Amount Amount Amount
on proporti t on proportion
on
Individually
significant accounts
receivable with 0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
separate provision
for doubtful debts
Accounts
receivable with
provision for 312,58
338,353, 100.00 9,401,35 100.00 328,952, 100.00 7,856,21 304,725,6
doubtful debts 1,896. 100.00%
834.12 % 5.42 % 478.70 % 9.86 76.29
based on 15
combination of
credit risk features
Individually
insignificant
accounts
0.00 0.00% 0.00 0.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
receivable with
separate provision
for doubtful debts
312,58
338,353, 100.00 9,401,35 100.00 328,952, 100.00 7,856,21 304,725,6
Total 1,896. 100.00%
834.12 % 5.42 % 478.70 % 9.86 76.29
15
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 RMB
Ending balance
Age
Other receivables Bad debt reserve Provision proportion
Itemized based on those within 1 year
Sub-total within 1 year 147,025,265.00 7,351,263.25 5.00%
1 to 2 years 4,164,370.70 416,437.07 10.00%
2 to 3 years 3,138,681.42 941,604.43 30.00%
Over 3 years 1,384,101.34 692,050.67 50.00%
Total 155,712,418.46 9,401,355.42
Note to the basis for determining the portfolio:
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
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 accounts 182,641,415.66 - -
Based on historical experience, the Group’s 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 RMB24,170,746.89,
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 RMB1,208,537.35.
(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 RMB
Ending balance Opening balance
Age
Amount Proportion Amount Proportion
Within 1 year 31,981,436.31 88.41% 40,458,069.74 82.78%
102
FIYTA Holdings Ltd. 2016 Semi-Annual Report
1 to 2 years 3,466,932.60 9.58% 7,684,834.45 15.73%
2 to 3 years 103,176.35 0.29% 103,176.35 0.21%
Over 3 years 623,483.06 1.72% 623,483.06 1.28%
Total 36,175,028.32 -- 48,869,563.60 --
(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 RMB 25,044,561.86, taking 50.00% of the toal ending balance of the advance payment.
7. Interest receivable
Inapplicable
8. Dividends receivable
Inapplicable
9. Other receivables
(1) Disclosure of classification of other receivables
In RMB
Ending balance Opening balance
Book Balance Bad debt reserve Book Balance Bad debt reserve
Categories Provisio
Book Book
Proporti n Amoun Proporti Provision
Amount Amount value Amount value
on proporti t on proportion
on
Individually
significant other
receivables for 800,000. 800,000. 800,00 800,000.
1.73% 29.95% 0.00 1.88% 28.86% 0.00
which bad debt 00 00 0.00 00
reserve has been
provided separately
Other receivables
for which bad debt 41,699
45,438,4 1,751,51 43,686,9 1,852,08 39,847,73
reserve has been 98.02% 65.56% ,818.2 97.84% 66.81%
41.80 3.00 28.80 5.48 2.76
provided based on 4
the portfolio
Other receivables 120,000. 0.25% 120,000. 4.49% 0.00 120,00 0.28% 120,000. 4.33% 0.00
103
FIYTA Holdings Ltd. 2016 Semi-Annual Report
with insignificant 00 00 0.00 00
single amount and
provision of bad
debt reserve on
individual basis
42,619
46,358,4 100.00 2,671,51 100.00 43,686,9 100.00 2,772,08 39,847,73
Total ,818.2 100.00%
41.80 % 3.00 % 28.80 % 5.48 2.76
4
Other receivables with individually significant amount and provision for bad and doubtful debts individually provided at the
end of the reporting period:
In RMB
Other receivables Ending balance
(based on units) Other receivables Bad debt reserve Provision proportion Cause of provision
Deposit in security 800,000.00 800,000.00 100.00% Unrecoverable
Total 800,000.00 800,000.00 -- --
Other receivables with provision for bad and doubtful debts based on the other method in the portfolio:
In RMB
Ending balance
Age
Other receivables Bad debt reserve Provision proportion
Itemized based on those within 1 year
Sub-total within 1 year 39,629,683.01 1,737,390.60 4.38%
1 to 2 years 5,244.00 524.40 10.00%
2 to 3 years 9,000.00 2,700.00 30.00%
Over 3 years 21,796.00 10,898.00 50.00%
Total 39,665,723.01 1,751,513.00
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:
Name of portfolio Book Balance Provision for bad debt Provision proportion %
Portfolio of specific accounts 5,772,718.79 - -
Based on historical experience, the Group’s 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.
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
(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 RMB
Nature of Payment Ending book balance Opening book balance
Reserve 5,772,718.79 4,917,828.70
Deposit in security 11,622,707.83 9,126,499.58
Deposit in security 19,803,097.02 19,654,321.18
Commodity promotion fee 6,079,711.62 6,617,843.27
Others 3,080,206.54 2,303,325.51
Total 46,358,441.80 42,619,818.24
(5) Other receivables of the ending balance due from the top five debtors of the Group are as
follows:
In RMB
Ending balance of
% of the balance of
Names Nature Ending balance Age provision for bad
other receivables
and doubtful debts
China Resources
(Shenzhen) Co., Guarantee deposit 2,800,054.00 Within 1 year 6.04% 140,002.70
Ltd
Ernest Borel (Far Brand promotion
1,501,000.00 Within 1 year 3.24% 75,050.00
East) Co., Ltd. fee
Shenzhen Yitian
Holiday Plaza Co,. Deposit 1,090,523.00 Within 1 year 2.35% 54,526.15
Ltd.
Oris International
Trade Brand promotion
942,700.00 Within 1 year 2.03% 47,135.00
(Shanghai) Co., fee
Ltd.
Astro swiss Time Brand promotion
806,275.00 Within 1 year 1.74% 40,313.75
lirshed fee
105
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Total -- 7,140,552.00 -- 15.40% 357,027.60
(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
10. Inventories
(1) Classification of inventories
In RMB
Ending balance Opening balance
Items Provision for Provision for
Book Balance Book value Book Balance Book value
price falling price falling
Raw materials 136,400,872.44 6,305,697.86 130,095,174.58 160,662,691.18 6,305,697.86 154,356,993.32
Products in
10,965,647.21 0.00 10,965,647.21 17,310,018.61 0.00 17,310,018.61
process
Commodities in 1,871,637,523.5 1,849,431,403.0 1,943,230,127.8 1,921,024,007.3
22,206,120.52 22,206,120.52
stock 2 0 8 6
2,019,004,043.1 1,990,492,224.7 2,121,202,837.6 2,092,691,019.2
Total 28,511,818.38 28,511,818.38
7 9 7 9
(2) Provision for price falling of inventories
In RMB
Increase in the reporting period Decrease in the reporting period
Opening
Items Provision Reversal Ending balance
balance Others Others
Proportion or Offset
Raw materials 6,305,697.86 0 0 0 0 6,305,697.86
Products in
0.00 0 0 0 0 0.00
process
Commodities in 22,206,120.52 0 0 0 0 22,206,120.52
106
FIYTA Holdings Ltd. 2016 Semi-Annual Report
stock
Total 28,511,818.38 0 0 0 0 28,511,818.38
(3) Note to the amount of capitalized borrowing costs involved in the ending balance of
inventories
Inapplicable
(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 RMB
Items Ending balance Opening balance
Input VAT to be offset 5,492,636.22 10,185,449.99
Rent 3,128,141.46 4,065,558.45
Others 2,438,827.59 1,545,765.12
Total 11,059,605.27 15,796,773.56
14. Available-for-sale financial assets
(1) Description of available-for-sale financial assets
In RMB
Ending balance Opening balance
Items Impairment Impairment
Book Balance Book value Book Balance Book value
reserve reserve
Available-for-sale equity
385,000.00 300,000.00 85,000.00 385,000.00 300,000.00 85,000.00
instrument
Measured based 385,000.00 300,000.00 85,000.00 385,000.00 300,000.00 85,000.00
107
FIYTA Holdings Ltd. 2016 Semi-Annual Report
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
(3) Available-for-sale financial assets measured based on costs at the end of the reporting period
In RMB
Book Balance Impairment reserve Holding
Cash
proporton
Beginning Increase Beginning Increase Decrease dividend
End of the of the
Investees of the in the of the in the in the in the
reporting shares in
reporting reporting reporting reporting reporting reporting
period the
period period period period period period
investees
Shenzhe
n CATIC
Culture 300,000.0 300,000.0 300,000.0 300,000.0
0 0 0 0 15.00%
Communi 0 0 0 0
cation
Co., Ltd
Xian
Tangchen
85,000.00 0 0 85,000.00 0 0 0.10%
g Co.,
Ltd.
385,000.0 385,000.0 300,000.0 300,000.0
Total 0 0 0 0 --
0 0 0 0
(4) Movement of impairment of available-for-sale financial assets in the reporting period
In RMB
Classification of
Available-for-sale equity Available-for-sale liability
available-for-sale financial Total
instrument instrument
assets
Opening balance of the
300,000.00 0 300,000.00
impairment reserve provided
Ending balance of the
300,000.00 0 300,000.00
impairment reserve provided
108
FIYTA Holdings Ltd. 2016 Semi-Annual Report
(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
Inapplicable
16. Long term accounts receivable
Inapplicable
17. Long term equity investment
In RMB
Increase/ Decrease (+ / -) in the reporting period
Cash Ending
Other dividend balance
Addition compreh Other or profit Provision of the
Investee Opening Ending
al ensive equity announc for provision
s balance Others balance
investme income moveme ed for impairme for
nt adjustme nt distributi nt impairme
nt on nt
I. Joint Venture
II. Associates
Shangha
i Watch
Industry
Co., 43,221,5 383,750. 42,837,9
172.19
Ltd.(Sha 72.05 00 94.24
nghai
Watch
Industry)
43,221,5 383,750. 42,837,9
Sub-total 172.19
72.05 00 94.24
43,221,5 383,750. 42,837,9
Total 172.19
72.05 00 94.24
109
FIYTA Holdings Ltd. 2016 Semi-Annual Report
18. Investment property
(1) Investment property measured based on the cost method
In RMB
Construction-in-progre
Items Housing and buildings Land use right Total
ss
I. Carrying amount of
340,029,020.44 340,029,020.44
cost
1. Opening
340,029,020.44 340,029,020.44
balance
2. Increased
amount in the reporting
period
(1) Procured
(2)
Inventories\fixed
assets\transfer-in of
the
construction-in-proces
s
(3) Increase from
consolidation of
enterprises
3. Decreased
amount in the reporting
period
(1) Disposed
(2) Other
transfer-out
4. Ending
340,029,020.44 340,029,020.44
balance
II. Total of
accumulative
depreciation and
accumulative
amortization
1. Opening
123,080,827.42 123,080,827.42
balance
110
FIYTA Holdings Ltd. 2016 Semi-Annual Report
2. Increased
amount in the reporting 4,571,872.94 4,571,872.94
period
(1) Provision or
4,571,872.94 4,571,872.94
amortization
3. Decreased
amount in the reporting
period
(1) Disposed
(2) Other
transfer-out
4. Ending
127,652,700.36 127,652,700.36
balance
III. Provision for
impairment
1. Opening
balance
2. Increased
amount in the reporting
period
(1) Provision
3. Decreased
amount in the reporting
period
(1) Disposed
(2) Other
transfer-out
4. Ending
balance
IV. Book value
1. Book value at
212,376,320.08 212,376,320.08
the end of the period
2. Book value at
216,948,193.02 216,948,193.02
the beginning of the
111
FIYTA Holdings Ltd. 2016 Semi-Annual Report
period
(2) Investment property measured based on fair value
Inapplicable
(3) Investment property that does not have certificate for property right
Inapplicable
19. Fixed assets
(1) About fixed assets
In RMB
Housing and Machines & Electronic
Items Motor vehicles others Total
buildings equipment equipment
I. Carrying
amount of cost:
1. Opening
359,056,823.22 79,465,117.28 16,519,643.99 33,860,418.53 40,158,846.40 529,060,849.42
balance
2. Increased
amount in the 2,773,152.16 813,551.59 137,756.93 3,065,101.86 513,010.57 7,302,573.11
reporting period
(1)
2,773,152.16 813,551.59 137,756.93 3,065,101.86 513,010.57 7,302,573.11
Purchased
(2)
Transfer in of
the
construction-in-
progress
(3)
Increase from
consolidation of
enterprises
3.
Decreased
0.00 2,465,412.14 280,066.00 182,664.87 102,636.00 3,030,779.01
amount in the
reporting period
(1) 0.00 2,465,412.14 280,066.00 182,664.87 102,636.00 3,030,779.01
112
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Disposal or
scrapping
4. Ending
361,829,975.38 77,813,256.73 16,377,334.92 36,742,855.52 40,569,220.97 533,332,643.52
balance
II. Accumulative
depreciation
1. Opening
64,764,532.05 32,745,907.86 12,388,527.12 24,125,690.46 33,056,363.92 167,081,021.41
balance
2. Increased
amount in the 6,342,186.69 3,592,937.69 717,433.20 1,644,196.97 963,692.82 13,260,447.37
reporting period
(1)
6,342,186.69 3,592,937.69 717,433.20 1,644,196.97 963,692.82 13,260,447.37
Provision
3.
Decreased
0.00 163,845.67 266,016.00 146,196.92 65,700.59 641,759.18
amount in the
reporting period
(1)
Disposal or 0.00 163,845.67 266,016.00 146,196.92 65,700.59 641,759.18
scrapping
4. Ending
71,106,718.74 36,174,999.88 12,839,944.32 25,623,690.51 33,954,356.15 179,699,709.60
balance
III. Provision for
impairment
1. Opening
balance
2. Increased
amount in the
reporting period
(1)
Provision
3.
Decreased
amount in the
reporting period
113
FIYTA Holdings Ltd. 2016 Semi-Annual Report
(1)
Disposal or
scrapping
4. Ending
balance
IV. Book value
1. Book
value at the end 290,723,256.64 41,638,256.85 3,537,390.60 11,119,165.01 6,614,864.82 353,632,933.92
of the period
2. Book
value at the
294,292,291.17 46,719,209.42 4,131,116.87 9,734,728.07 7,102,482.48 361,979,828.01
beginning of 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 RMB
Reason for not having certificate for
Item Book value
property rights
Office rooms for Harbin Branch 311,503.20 Defective in property right
Other note:
As at June 30, 2016, the plant and building with original book value of RMB 26,852,039.58 (net book value amounting to
RMB 20,596,594.27) was taken as the collateral for the long term loan amounting to RMB 5,983,991.44.
20.Construction in progress
(1)About construction in progress
In RMB
114
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Ending balance Opening balance
Projects Impairment Impairment
Book Balance Book value Book Balance Book value
reserve reserve
Clock & Watch
base in
198,425,573.20 0.00 198,425,573.20 173,189,274.57 0.00 173,189,274.57
Guangming
New District
Toilet decoration
engineering in
the public area
608,270.77 0.00 608,270.77 0.00 0.00 0.00
of FIYTA
Technology
Building
Outdoor storm
sewage bypass
project of FIYTA 282,709.05 0.00 282,709.05 0.00 0.00 0.00
Technology
Building
Xi’an Grand
Noble roofing
glazed tile 496,839.70 0.00 496,839.70 0.00 0.00 0.00
anti-falling
engineering
Total 199,813,392.72 0.00 199,813,392.72 173,189,274.57 0.00 173,189,274.57
(2) Movements of important construction-in-progress projects in the reporting period
In RMB
Including:
Transferr Proportio Accumula
amount of
ed into Other n of the tive Interest
Increase the
the fixed decrease project amount capitalizat
Budget Opening in the Ending Project capitalize Fund
Projects assets s in the put into involved ion rate in
balance reporting balance progress d interest source
in the reporting applicatio in interest the report
period in the
reporting year n in the capitalizat period
report
period budget ion
period
Clock &
Loan
Watch
from
base in 300,000 173,189 25,236, 198,425 5,579,5 2,193,2
66.14% 66.14% 4.53% financial
Guangmi ,000.00 ,274.57 298.63 ,573.20 60.73 08.35
institutio
ng New
ns
District
115
FIYTA Holdings Ltd. 2016 Semi-Annual Report
300,000 173,189 25,236, 198,425 5,579,5 2,193,2
Total -- -- 4.53% --
,000.00 ,274.57 298.63 ,573.20 60.73 08.35
(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
Inapplicable
24. Oil and gas assets
Inapplicable
25. Intangible assets
(1) About intangible assets
In RMB
Non patent Software Trademark use
Items Land use right Patent Total
technology system right
I. Carrying
amount of cost
1.
Opening 34,854,239.40 6,958,309.33 9,547,313.86 51,359,862.59
balance
2.
Increased
0.00 1,325,261.64 0.00 1,325,261.64
amount in the
reporting period
(1)
0.00 1,325,261.64 0.00 1,325,261.64
Purchased
(2)
116
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Internal R & D
(3)
Increase from
consolidation of
enterprises
3.
Decreased
0.00 0.00 0.00 0.00 0.00 0.00
amount in the
reporting period
(1)
Disposed
4. Ending
34,854,239.40 8,283,570.97 9,547,313.86 52,685,124.23
balance
II. Accumulative
amortization:
1.
Opening 8,423,709.66 3,284,434.09 3,222,092.18 14,930,235.93
balance
2.
Increased
172,037.16 0.00 530,113.36 702,150.52
amount in the
reporting period
(1)
172,037.16 0.00 530,113.36 702,150.52
Provision
3.
Decreased
0.00 0.00 0.00 0.00
amount in the
reporting period
(1)
Disposed
4. Ending
8,595,746.82 3,284,434.09 3,752,205.54 15,632,386.45
balance
III. Provision for
impairment
1.
117
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Opening
balance
2.
Increased
amount in the
reporting period
(1)
Provision
3.
Decreased
amount in the
reporting period
(1)
Disposed
4. Ending
balance
IV. Book value
1. Book
value at the end 26,258,492.58 4,999,136.88 5,795,108.32 37,052,737.78
of the period
2. Book
value at the
26,430,529.74 3,673,875.24 6,325,221.68 36,429,626.66
beginning of the
period
The proportion of intangible assets formed not through the Company’s 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
Inapplicable
26. Development expenditure
Inapplicable
118
FIYTA Holdings Ltd. 2016 Semi-Annual Report
27. Goodwill
(1) Book value of goodwill
In RMB
Investees or
Opening
matters forming Increase in the reporting period Decrease in the reporting period Ending balance
balance
the goodwill
Lishan
Department 1,735,756.48 0 0 0 0 1,735,756.48
Store Co.
Total 1,735,756.48 0 0 0 0 1,735,756.48
(2) Provision for impairment of goodwill
In RMB
Investees or
Opening
matters forming Increase in the reporting period Decrease in the reporting period Ending balance
balance
the goodwill
Lishan
Department 1,735,756.48 0 0 0 0 1,735,756.48
Store Co.
Total 1,735,756.48 0 0 0 0 1,735,756.48
Method for impairment testing and provision of reserve for impairment
HARMONY, one of the Company’s subsidiaries acquired 100% equity in Lishan Department Store on March 31, 2008 with
valuable consideration of RMB 1,200,000.00 and the fair value of the recognizable net assets of Lishan Department Store
on the acquisition day was RMB - 535,756.48. HARMONY presented the margin amounting to RMB 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 RMB 1,735,756.48 to the
gain and loss of the year 2008.
Other Note:
Method for impairment testing and provision of reserve for impairment
HARMONY, one of the Company’s subsidiaries acquired 100% equity in Lishan Department Store on March 31, 2008 with
valuable consideration of RMB 1,200,000.00 and the fair value of the recognizable net assets of Lishan Department Store
on the acquisition day was RMB - 535,756.48. HARMONY presented the margin amounting to RMB 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 RMB 1,735,756.48 to the
gain and loss of the year 2008.
119
FIYTA Holdings Ltd. 2016 Semi-Annual Report
28. Long-term expenses to be apportioned
In RMB
Amount amortized
Increase in the
Items Opening balance in the reporting Other decrease Ending balance
reporting period
period
Cost for making
66,887,503.25 30,836,015.44 34,209,768.10 63,513,750.59
special counters
Refurbishment 71,772,662.17 12,835,391.53 17,686,446.46 66,921,607.24
Endorsement fee 16,373,614.53 0.00 4,200,546.45 12,173,068.08
Others 670,784.44 116,400.94 358,225.82 428,959.56
Total 155,704,564.39 43,787,807.91 56,454,986.83 143,037,385.47
29. Deferred Income Tax Asset and Deferred Income Tax Liability
(1) Deferred income tax asset without offsetting
In RMB
Ending balance Opening balance
Items Offsetable provisional Deferred income tax Offsetable provisional Deferred income tax
discrepancy asset discrepancy asset
Reserve for
impairment of the 40,584,686.80 9,451,784.18 53,423,315.43 12,781,048.95
assets
Unrealized profit of
347,658,479.86 85,800,515.82 371,236,241.47 87,969,273.73
internal transaction
Offsetable loss 9,768,722.91 2,210,290.89 16,561,138.12 4,076,400.48
Deferred income 4,800,000.00 1,200,000.00 4,300,000.00 1,075,000.00
Total 402,811,889.57 98,662,590.89 445,520,695.02 105,901,723.16
(2) Deferred income tax liabilities without offsetting
Inapplicable
(3) Deferred income tax asset or liabilities stated with net amount after offsetting
Inapplicable
(4) Statement of deferred income tax asset not recognized
In RMB
120
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Items Ending balance Opening balance
Offsetable provisional discrepancy 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
30. Other non-current assets
In RMB
Items Ending balance Opening balance
Prepayment for equipment 7,458,521.88 5,118,833.65
Total 7,458,521.88 5,118,833.65
31. Short-term loans
(1) Classification of short-term loans
In RMB
Items Ending balance Opening balance
Secured borrowings 293,344,590.08 338,186,200.00
Credit borrowings 890,000,000.00 650,000,000.00
Total 1,183,344,590.08 988,186,200.00
(2)Short-term loans overdue but still remaining outstanding
Inapplicable
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. 2016 Semi-Annual Report
35. Accounts payable
(1) Statement of accounts payable
In RMB
Items Ending balance Opening balance
Loan 93,779,278.60 111,750,463.34
Payment for materials 11,080,449.21 20,477,883.44
Engineering warranty fee 211,339.76 23,711,339.76
Total 105,071,067.57 155,939,686.54
(2) Significant accounts payable with age exceeding 1 year
Inapplicable
36. Advances from customers
(1) Statement of advances from customers
In RMB
Items Ending balance Opening balance
Loan 15,338,733.94 14,823,613.26
Rental 3,097,503.75 3,207,516.61
Total 18,436,237.69 18,031,129.87
(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
37. Employee remuneration payable
(1) Statement of employee remuneration payable
In RMB
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
I. Short term 38,910,666.81 219,931,896.02 240,850,957.32 17,991,605.51
122
FIYTA Holdings Ltd. 2016 Semi-Annual Report
remuneration
II.
Post-employment Ben
486,081.14 17,464,331.84 17,949,547.78 865.20
efit- Defined
Contribution Plan
III. Dismission welfare 0.00 2,835,626.03 2,835,626.03 0.00
Total 39,396,747.95 240,231,853.89 261,636,131.13 17,992,470.71
(2) Statement of short-term remuneration
In RMB
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
1. Salaries, bonus,
38,695,841.28 197,120,505.36 218,083,838.14 17,732,508.50
allowance and subsidy
2. Employee’s welfare 5,014,645.55 5,014,645.55 0.00
3. Social insurance
7,754,877.77 7,754,877.77
premium
Including:
Medical insurance 6,866,719.31 6,866,719.31 0.00
premium
Service
injury insurance 344,592.44 344,592.44 0.00
premium
Maternity
543,566.02 543,566.02 0.00
insurance premium
4. Housing provident
7,796,409.01 7,796,409.01 0.00
fund
5. Trade union dues
and employee’s 214,825.53 2,107,930.33 2,063,658.85 259,097.01
education budget
8. Other short term
137,528.00 137,528.00 0.00
remuneration
Total 38,910,666.81 219,931,896.02 240,850,957.32 17,991,605.51
(3) Statement of defined contribution plan
In RMB
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
123
FIYTA Holdings Ltd. 2016 Semi-Annual Report
1. Basic endowment
837.80 16,747,177.31 16,747,149.91 865.20
insurance premium
2. Unemployment
0.00 717,154.53 717,154.53 0.00
insurance premium
3. Enterprise annuity
485,243.34 0.00 485,243.34 0.00
payment
Total 486,081.14 17,464,331.84 17,949,547.78 865.20
38. Taxes payable
In RMB
Items Ending balance Opening balance
Value-added tax 40,077,675.98 38,446,286.82
Consumption tax 0.00
Business tax 180,829.69 585,194.96
Business income tax 4,176,803.21 27,163,568.79
Individual income tax 825,803.07 1,102,201.03
Urban maintenance and construction
301,679.39 612,201.25
tax
Real estate tax 571,712.73 45,596.12
Education surcharge 167,143.85 395,801.04
Stamp duty 220,901.71 242,297.50
Dyke protection surcharge 5,201.89 22,414.09
Others 128,141.56 306,171.21
Total 46,655,893.08 68,921,732.81
39. Interest payable
In RMB
Items Ending balance Opening balance
Interest of long term loans with interest
payment by installment and repayment 126,987.97 605,563.29
of principal at maturity
Interest of the enterprise bond 16,800,000.00
Interest of short term loan payable 1,669,872.93 1,806,066.73
Total 1,796,860.90 19,211,630.02
124
FIYTA Holdings Ltd. 2016 Semi-Annual Report
40. Dividend payable
Inapplicable
41. Other payables
(1) Other payments stated based on nature of fund
In RMB
Ending balance
Items Opening balance
Collateral and deposit 17,629,643.55 17,427,761.30
Refurbishment expense 2,151,081.00 4,268,223.01
Down payment 137,989.06 3,052,393.03
Fund for shop-front activities 3,945,441.90 8,504,697.12
Personal account payable 1,390,935.79 1,802,485.42
Incomings and outgoings among
0.00 0.00
FIYTA internal related parties
Housing allowances 0.00 1,760,000.00
Placement costs 0.00 1,146,772.99
Others 14,031,912.07 10,169,283.33
Total 39,287,003.37 48,131,616.20
(2) Other payables in significant amount and with aging over 1 year
In RMB
Cause of remaining outstanding or
Items Ending balance
carry-over
Shenzhen Tencent Computer System
4,693,429.16 Still in the lease term
Co., Ltd.
Grand fortress corporation limited 1,693,141.66 Not yet settled
Oracle R&D Center (Shenzhen)
811,590.00 Still in the lease term
Limited
Wu Dongmei 700,000.00 Still in the lease term
CATIC Property Management Co., Ltd. 472,032.00 Still in the lease term
Shenzhen Xiangya Food Co., Ltd. 471,760.00 Still in the lease term
CATIC Real Estate Co., Ltd. 424,800.00 Still in the lease term
Wen Qingbo(which has been changed
416,700.00 Still in the lease term
into Wen Jianbo)
125
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Shenzhen Honestar Technologies Co.,
375,144.00 Still in the lease term
Ltd
Shenzhen Good Family Sports-Ware
351,030.00 Still in the lease term
Chain Limited
Shenzhen Yitianxun Technology Co.,
345,435.66 Still in the lease term
Ltd.
Shenzhen Uni-phone Self-service
Kara-Ok Entertainment Supermarket 334,880.00 Still in the lease term
Limited
Shenzhen Oriental Boiler Control Co.,
318,491.60 Still in the lease term
Ltd.
Shenzhen Yongantang Chain
301,644.00 Still in the lease term
Pharmacy Limited
China Tenth Metallurgy Group Limited
300,000.00 Still in the lease term
Corporation
Shenzhen CATIC City Investment Co.,
244,068.00 Still in the lease term
Ltd.
Broadway Technology (Shenzhen) Co.,
243,547.28 Still in the lease term
Ltd.
Shenzhen Hangjian Engineering Cost
242,424.00 Still in the lease term
Consultation Co., Ltd
Total 12,740,117.36 --
42. Liabilities classified as held-for-sale liabilities
Inapplicable
43. Non-current liabilities due within one year
In RMB
Items Ending balance Opening balance
Long-term loan due within one year 119,728,000.00 108,914,000.00
Total 119,728,000.00 108,914,000.00
44. Other current liabilities
In RMB
Items Ending balance Opening balance
Short term bonds payable 0.00 0.00
126
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Accrued expenses 20,876,226.66 1,988,252.38
Total 20,876,226.66 1,988,252.38
45. Long-term Loan
(1) Classification of Long-term Borrowings
In RMB 元
Items Ending balance Opening balance
Pledged borrowings 5,983,991.44 5,877,036.33
Secured borrowings 239,589,928.00 194,031,928.00
Less: Long-term borrowings due within
-119,728,000.00 -108,914,000.00
1 year
Total 125,845,919.44 90,994,964.33
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 RMB 26,852,039.58 (net value of RMB 20,596,594.27) was
used as the collateral for the long term loan amounting to RMB 5,983,991.44.
③ For the detail about the guarantee to related parties, refer to Note XII.5(4).
46. Liabilities Payable
(1) Bonds payable
In RMB
Items Ending balance Opening balance
12 YADA Bond 0.00 399,823,760.28
Total 0.00 399,823,760.28
(2) Increase/Decrease of bonds payable (excluding other financial instruments classified as
financial liabilities, such as preferred shares, perpetual bonds, etc.)
In RMB
Interes Amorti Repay
Issuing
Issuan Openin t zation ment
Bond in the Ending
Bond Par Issuing ce g provid of in the
time reporti balanc
name value date amoun balanc ed premiu reporti
limit ng e
t e based m and ng
period
on the discou period
127
FIYTA Holdings Ltd. 2016 Semi-Annual Report
book nt
value
12 400,00 400,00 399,82 400,00
2013-2 3+2 3,360, 176,23
YADA 0,000. 0,000. 3,760. 0.00 0,000. 0.00
-27 years 000.00 9.72
Bond 00 00 28 00
400,00 399,82 400,00
3,360, 176,23
Total -- -- -- 0,000. 3,760. 0.00 0,000. 0.00
000.00 9.72
00 28 00
(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
51. Deferred income
128
FIYTA Holdings Ltd. 2016 Semi-Annual Report
In RMB
Increase in the Decrease in the Reasons of
Items Opening balance Ending balance
reporting period reporting period formation
Government
4,300,000.00 500,000.00 0.00 4,800,000.00
subsidies
Total 4,300,000.00 500,000.00 0.00 4,800,000.00 --
Items involving government subsidies:
In RMB
Amount counted
Amount of In connection
to the
Opening newly added with asset/in
Projects in debt non-operating Other changes Ending balance
balance subsidy in the connection with
income in the
reporting period income
reporting period
Special fund for
Shenzhen
industrial design
1,500,000.00 0.00 0.00 1,500,000.00 Asset related
industry
development
(Note①)
Financing
project for
construction of
enterprise
2,000,000.00 0.00 0.00 2,000,000.00 Asset related
technology
center certified
by the state
(Note②)
Key technology
R & D project for
DF101 Airplane 800,000.00 0.00 0.00 800,000.00 Income related
standard timing
system (Note③)
Reward from
the 17th Patent 0.00 500,000.00 500,000.00 Income related
Award
Total 4,300,000.00 500,000.00 0.00 4,800,000.00 --
Other Notes:
Note ①: It is the special fund for development of industrial design in Shenzhen obtained according to the Operation
Instructions on Certification and Financial Support Program for Industrial Design Centers in Shenzhen (Trial
Implementation) SHEN JING MAO IT Zi [2013] No. 227 jointly promulgated by Economy, Trade and Information
Commission of Shenzhen Municipality and Finance Commission of Shenzhen Municipality;
129
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Note ②: It is the fund from the financial support for construction of enterprise technology centers in Shenzhen obtained
according to the Circular of Development and Reform Commission of Shenzhen Municipality on Issuing the First Batch of
Supporting Program of Financial Support Fund for Construction of Enterprise Technology Centers in Shenzhen in 2015
(SHEN JING MAO XINXI YU [2015] No. 129 on October 28, 2015.
Note ③: It is the special fund for cooperation among organizations under the province and ministries, manufacturers and
research institutions obtained according to the Public Notice on the Projects Enjoying Support with the Special Fund for
Overall Strategic Cooperation of Provincial Institutions from the Special Fund for Cooperation among Organizations under
the Province and Ministries, Manufacturers and Research Institutions in Year 2013 (YUE KE GONG SHI [2014] No. 13)
promulgated by Department of Science and Technology of Guangdong Province on December 9, 2015.
52. Other non-current liabilities
Inapplicable
53. Capital stock
In RMB
Increase / Decrease (+/ -)
Opening Shares Ending
balance New issuing Bonus shares converted Others Sub-total balance
from reserve
438,744,881. 438,744,881.
Total Shares 0.00 0.00 0.00 0.00 0.00
00 00
Other Note:
The aforesaid capital stock has been verified by Grant Thornton Certified Public Accountants (Special General
Partnership) with the Capital Verification Report ZHI TONG YAN ZI (2015) No. 441ZC065.
54. Other equity instruments
Inapplicable
55. Capital reserve
In RMB
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
Captial premium
1,047,963,195.57 0.00 0.00 1,047,963,195.57
(capital stock premium)
Other capital reserve 14,492,448.65 0.00 0.00 14,492,448.65
Total 1,062,455,644.22 0.00 0.00 1,062,455,644.22
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
56. Treasury shares
Inapplicable
57. Other comprehensive income
In RMB
Amount incurred in the reporting period
Less:
gain/loss
Amount Attributabl
previously
incurred e to
recorded in Attributabl
Opening before Less: minority Ending
Items other e to parent
balance income tax Income tax sharehold balance
comprehensi company
in the expense ers after
ve gains after tax
reporting tax
transferred to
period
the current
gain/loss
II. Other comprehensive income
-17,145,189. 9,649,898. 9,577,876. -7,567,3
which cannot be re-classified into 72,021.96
71 67 71 13.00
the gain and loss in future
Translation difference in
-17,145,189. 9,649,898. 9,577,876. -7,567,3
financial statements expressed in 72,021.96
71 67 71 13.00
foreign currency
-17,145,189. 9,649,898. 9,577,876. -7,567,3
Total other comprehensive income 72,021.96
71 67 71 13.00
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 RMB 9,649,898.67. Amongst, the amount
attribute to parent company shareholders is RMB9,577,876.71, and net other after-tax comprehensive income attributable
to minority shareholders incurred in the reporting period amounted to RMB 72,021.96.
58. Special reserve
Inapplicable
59. Surplus reserve
In RMB
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
131
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Statutory surplus
117,758,183.15 0.00 0.00 117,758,183.15
reserve
Discretionary surplus
61,984,894.00 0.00 0.00 61,984,894.00
reserve
Total 179,743,077.15 0.00 0.00 179,743,077.15
Note to surplus reserve, including the note to its increase/decrease and the cause(s) of its movement in the reporting
period:
In accordance with the Company Law and the Articles of Association, the Company provides the Statutory surplus reserve
based on 10% of the Company’s net profit. The statutory surplus reserve may no longer be provided when the
accumulative amount of the statutory surplus reserve becomes more than 50% of the Company's registered capital.
60. Retained earnings
In RMB
Items Reporting period Previous period
Before adjustment: Retained earnings at the
635,417,237.55 566,819,577.37
end of the previous period
After adjustment: Retained earnings at the
635,417,237.55 566,819,577.37
beginning of the reporting period
Plus: Net profit attributable to the parent
60,332,425.80 73,109,419.73
company’s owner in the report period
Dividends of common shares payable 43,874,488.10 39,276,787.00
Retained earnings at year end 651,875,175.25 600,652,210.10
61. Operation Income and Costs
In RMB
Amount incurred in the reporting period Amount incurred in the previous period
Items
Income Cost Income Cost
Principal business 1,469,081,337.25 880,864,674.10 1,673,028,130.56 1,036,384,680.04
Other business 10,446,445.93 798,606.41 10,765,117.03 1,597,041.31
Total 1,479,527,783.18 881,663,280.51 1,683,793,247.59 1,037,981,721.35
62. Business Taxes and Surcharges
In RMB
Items Amount incurred in the reporting period Amount incurred in the previous period
Consumption tax 0.00 0.00
132
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Business tax 2,121,487.67 2,674,030.74
Urban maintenance and construction
6,135,806.40 6,808,734.25
tax
Education surcharge 4,299,104.46 4,757,348.20
Others 512,183.59 838,503.36
Total 13,068,582.12 15,078,616.55
63. Sales expenses
In RMB
Items Amount incurred in the reporting period Amount incurred in the previous period
Wages 128,204,790.69 129,998,396.21
Long-term expenses to be apportioned 50,513,483.05 48,078,068.57
Market promotion 43,982,810.03 37,009,378.62
Rental 31,632,919.79 32,849,091.00
Supermarket expenses 25,425,759.57 25,749,987.82
Advertisement 20,858,769.36 29,778,834.08
Labor insurance 18,582,742.25 19,265,374.37
Exhibition 10,030,786.86 6,977,469.24
Depreciation 6,640,615.39 7,141,527.36
Packing 6,555,952.03 7,984,140.77
Others 35,579,011.09 41,464,959.88
Total 378,007,640.11 386,297,227.92
64. Administrative Expenses
In RMB
Items Amount incurred in the reporting period Amount incurred in the previous period
Wages 46,178,475.38 45,287,133.52
R & D costs 18,483,969.94 18,788,221.52
Labor insurance 4,431,637.75 5,067,404.28
Depreciation 4,052,492.67 4,068,125.00
Business travel 2,666,524.90 3,541,532.40
Administrative expenses 2,027,004.60 2,110,915.63
Remuneration to agent(s) engaged by
1,946,271.53 1,966,345.00
the Company
133
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Housing provident fund 1,922,608.21 1,533,670.91
Long-term expenses to be apportioned 1,547,461.28 1,443,837.13
Welfare 1,433,879.77 1,262,184.36
Others 10,156,683.57 15,061,806.90
Total 94,847,009.60 100,131,176.65
65. Financial expenses
In RMB
Items Amount incurred in the reporting period Amount incurred in the previous period
Interest payment 33,210,251.79 46,490,128.21
Less: Capitalized interest 2,193,208.35 1,239,280.88
Less: interest income 1,755,470.96 885,212.57
Exchange losses 283,183.66 877.53
Service charges and others 5,177,171.78 6,523,274.50
Total 35,230,653.98 50,889,786.79
66. Loss from impairment of assets
In RMB
Items Amount incurred in the reporting period Amount incurred in the previous period
I. Loss from bad debt 1,441,224.55 -315,964.63
II. Loss from price falling of inventories 0.00 -57,094.98
Total 1,441,224.55 -373,059.61
67. Income from change of the fair value
Inapplicable
68. Return on investment
In RMB
Amount incurred in the previous
Items Amount incurred in the reporting period
period
Return on long term equity investment
172.19 250,015.75
based on equity method
Total c172.19 250,015.75
134
FIYTA Holdings Ltd. 2016 Semi-Annual Report
69. Non-operating income
In RMB
Amount recorded in the
Amount incurred in the Amount incurred in the
Items non-recurring gain/loss in the
reporting period previous period
reporting period
Total gains from disposal of
10,960.00 69,750.00 0.00
non-current asset
Including: Income from
10,960.00 69,750.00 10,960.00
disposal of fixed assets
Government subsidies 815,000.00 1,603,451.99 815,000.00
Disposal of accounts payable
which are impossible to be 99,618.61 108,732.73 99,618.61
paid
Others 476,781.67 67,900.55 476,781.67
Total 1,402,360.28 1,849,835.27 1,402,360.28
Government subsidy counted to the current gain and loss:
In RMB
Did the Amount Amount In connection
Granting Cause of subsidy affect Is it a special incurred in the incurred in the with asset/in
Subsidy Items Nature type
principal granting the gain/loss of subsidy reporting previous connection
the very year period period with income
Subsidy for
Honorable
R&D,
Mension of State
technology
17th Chinese Intellectaul earnings
Reward upgrading No No 600,000.00
Patent Award Property Office related
&
(Note①) of the P.R.C.
improvement,
etc.
Subsidy for
Honorable
R&D,
mention at the State
technology
17th Chinese Intellectaul earnings
Reward upgrading No No 100,000.00
Industrial Property Office related
&
Design Award of the P.R.C.
improvement,
(Note 2)
etc.
Government Shenzhen Subsidy
earnings
subsidy for Watch & Clock subsidy obtained due No No 60,000.00 431,491.63
related
BaselWorld Association to engagement
135
FIYTA Holdings Ltd. 2016 Semi-Annual Report
2016 received in specific
from businesses
Shenzhen and industries
Watch & Clock encouraged
Association and supported
(Note 3) by the state
(obtained
legally
according to
the provisions
of national
policy
Financial
support from Subsidy for
Bao’an District, R&D,
Shenzhen for Bao’an District technology
earnings
implementing Government subsidy upgrading No No 50,000.00
related
standardized Shenzhen &
strategic improvement,
proujects etc.
(Note 4)
Subsidy for
Shenzhen First Market &
R&D,
Batch of Quality
technology
Patent Supervision earnings
subsidy upgrading No No 5,000.00
Financial Commission of related
&
Support Fund Shenzhen
improvement,
2016 (Note 5) Municipality
etc.
Subsidy for
Honorable R&D,
State
mention at the technology
Intellectaul earnings
15th Chinese Reward upgrading No No 100,000.00
Property Office related
Industrial &
of the P.R.C.
Design Award improvement,
etc.
Monetary Subsidy for
reward from R&D,
the People’s
2013 Science technology
Government of earnings
& Technology Reward upgrading No No 50,000.00
Guangdong related
Award of &
Province
Guangdong improvement,
Province etc.
136
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Subsidy
obtained due
to engagement
in specific
businesses
Financial
Economy, and industries
support for
Trade and encouraged
encouraging earnings
Information Subsidy and supported No No 900,000.00
brand related
Commission of by the state
cultivating
Shenzhen (obtained
project
Municipality legally
according to
the provisions
of national
policy
Subsidy
obtained due
to engagement
Financial in specific
support from Shenzhen businesses
Shenzhen Association of and industries
Association of Staff and encouraged
earnings
Staff and Workers Subsidy and supported No No 121,960.36
related
Workers Education and by the state
Education and Vocational (obtained
Vocational Training legally
Training according to
the provisions
of national
policy
Total -- -- -- -- -- 815,000.00 1,603,451.99 --
Other notes:
1. It refers to the honorable mension and the supporting pmonetary award at the 17th Chinese Patent Award obtained in
accordance with Document GUO ZHI FA GUAN ZI (2015) No. 67 issued by the State Intellectaul Property Office of the
P.R.C.;
2. It refers to the honorable mention at the 17th Chinese Industrial Design Award obtained according to Document GUO
ZHI FA GUAN ZI (2015) No. 67 issued by the State Intellectaul Property Office of the P.R.C.;
3. It refers to the subsidy for BaselWorld 2016 provided by Shenzhen Watch & Clock Association
4. It refers to the financial support from Bao’an District, Shenzhen for implementing standardized strategic projects in
accordance with the Measures of Bao’an District on Management of the Special Financial Fund at District Level (SHEN
137
FIYTA Holdings Ltd. 2016 Semi-Annual Report
BAO GUI (2013) No. 14) and the Operation Specifications of Bao’an District for Implementation of the Standardized
Strategic Financial Support (SHEN BAO FU BAN [2013] No. 15);
5. It refers to the patent financing fund distributed by Market & Quality Supervision Commission of Shenzhen Municipality
in accordance with the Measures for Management of the Special Fund for Intellectual Property in Shenzhen (SHEN CAI
GUI (2014) No. 18).
70. Non-operating expenses
In RMB
Amount recorded in the
Amount incurred in the Amount incurred in the
Items non-recurring gain/loss in the
reporting period previous period
reporting period
Total loss from disposal of
94,833.03 35,549.22 0.00
the non-current assets
Including: Loss from disposal
94,833.03 35,549.22 94,833.03
of fixed assets
External donation 300,000.00 300,000.00 300,000.00
Others 134,135.99 9,851.37 134,135.99
Total 528,969.02 345,400.59
71. Income tax expense
(1) Income tax expenses
In RMB
Items Amount incurred in the reporting period Amount incurred in the previous period
Current income tax expense 8,540,581.27 31,859,444.11
Deferred income tax expense 7,239,132.27 -9,597,783.88
Total 15,779,713.54 22,261,660.23
(2) Process of adjustment of accounting profit and income tax expense
In RMB
Items Amount incurred in the reporting period
Total profit 75,962,362.12
Income tax expense calculated according to the
18,945,485.17
statutory/applicable tax rate
Influence from applicable different tax rates on subsidiaries -2,838,458.02
Influence from adjustment of the income tax of the previous 120,770.31
138
FIYTA Holdings Ltd. 2016 Semi-Annual Report
period
Influence of non-taxable income 45,105.36
Influence from un-deductable costs, expenses and losses 79,310.72
Influence from use of the offsetable loss from the deferred
0.00
income tax asset not recognized in the previous period
Influence from the offsetable provisional difference or
offsetable loss of the unrecognized deferred income tax 0.00
asset at the end of the reporting period
Influence from the addition of the R & D expenses upon
-572,500.00
deduction of tax payment (to be stated with “-“)
Income tax expense
15,779,713.54
72. Other comprehensive income
For the detail, refer to Note VII.57.
73. Cash Flow Statement Items
(1) Other operation activities related cash receipts
In RMB
Items Amount incurred in the reporting period Amount incurred in the previous period
Commodity promotion 8,451,835.60 9,333,292.34
Government subsidies 1,315,000.00 1,603,451.99
Deposit 1,454,782.40 1,182,075.52
Interest income 1,755,470.96 885,212.57
Reserves 63,375.00 203,646.34
Others 438,659.98 1,512,829.43
Total 13,479,123.94 14,720,508.19
(2) Other cash paid in connection with operation activities
In RMB
Items Amount incurred in the reporting period Amount incurred in the previous period
Rental 32,846,280.51 34,001,507.19
Market promotion 31,982,263.58 28,278,326.28
Supermarket expenses 25,425,759.57 25,749,987.82
Advertisement 17,028,769.36 27,118,834.08
139
FIYTA Holdings Ltd. 2016 Semi-Annual Report
R & D costs 15,484,698.94 16,624,631.81
Business travel 7,011,217.23 9,281,083.68
Packing 6,555,952.03 7,984,140.77
Water and electricity 6,544,217.89 7,361,322.68
Exhibition 6,070,786.86 1,057,469.24
Administrative expenses 5,371,803.27 6,997,934.01
Others 7,729,310.67 39,277,299.94
Total 162,051,059.91 203,732,537.50
(3) Cash received from other investment related activities
Inapplicable
(4) Cash paid for other investment related activities
Inapplicable
(5) Other financing related cash received
In RMB
Items Amount incurred in the reporting period Amount incurred in the previous period
Letter of Credit 0.00 13,500,000.00
Total 0.00 13,500,000.00
(6) Other financing related cash paid
In RMB
Items Amount incurred in the reporting period Amount incurred in the previous period
Borrowings paid to related parties 0.00 100,000,000.00
Bank financial charges 0.00 420,000.00
Fund raising related charges paid 971,661.19 0.00
Others 21,008.00 31,008.00
Total 992,669.19 100,451,008.00
74. Supplementary information of the cash flow statement
(1) Additional information of the cash flow statement
In RMB
140
FIYTA Holdings Ltd. 2016 Semi-Annual Report
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 60,182,648.58 73,280,568.14
Plus: Provisions for impairment of assets 1,441,224.55 -373,059.61
Depreciation of fixed assets, oil and gas
17,832,320.31 18,916,809.59
assets, production based biological asset
Amortization of intangible assets 702,150.52 689,122.13
Long-term expenses to be apportioned 56,454,986.83 53,661,523.66
Loss (income is stated with “-“) from
disposal of fixed assets, intangible 83,873.03 -34,200.78
assets and other long term assets
Financial expenses (income is stated
31,017,043.44 46,490,128.21
with “-“)
Investment loss (income is stated with
-172.19 -250,015.75
“-“)
Decrease of deferred income tax asset
7,239,132.27 -8,468,887.13
(increase is stated with “-“)
Increase of deferred income tax asset
130,940.80
(decrease is stated with “-“)
Decrease of inventories (increase is
102,198,794.50 37,599,295.21
stated with “-“)
Decrease of operative items receivable
-18,426,361.60 -110,237,568.24
(increase is stated with “-“)
Increase of operative items receivable
-41,296,501.34 60,849,122.33
(decrease is stated with “-“)
Net cash flow arising from operating
217,609,732.54 172,253,778.56
activities
2. Significant investment and
fund-raising activities not involved in -- --
cash income and expenses:
3. Net change of cash and cash
-- --
equivalents:
Ending cash balance 497,096,980.62 158,879,732.91
Less: Opening cash balance 637,387,875.93 114,880,070.54
Net increase in cash and cash
-140,290,895.31 43,999,662.37
equivalents
141
FIYTA Holdings Ltd. 2016 Semi-Annual Report
(2) Net cash paid for acquisition of subsidiary in the reporting period
Inapplicable
(3) Net cash received from disposal of subsidiary in the reporting period
Inapplicable
(4) Composition of cash and cash equivalents
In RMB
Items Ending balance Opening balance
I. Cash 497,096,980.62 637,387,875.93
III. Balance of cash and cash equivalent
497,096,980.62 637,387,875.93
at the end of the report period
75. Notes to items of statement of change in owner’s equity
Inapplicable
76. Assets restricted in ownership or use right
In RMB
Items Book value at the end of the period Cause of restriction
Monetary funds 1,575,000.00 Cash deposit by L/G
Fixed assets 20,596,594.27 Long-term loan collateral
Total 22,171,594.27 --
77. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Ending foreign currency Ending Renminbi balance
Items Conversion rate
balance after conversion
Monetary funds -- --
Where: USD 589,265.83 6.6312 3,907,539.56
Euro 524.45 7.375 3,867.82
HKD 600,074.98 0.85467 512,866.08
CHF 150,092.93 6.773 1,016,579.41
142
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Accounts receivable -- --
Where: USD 23,214.00 6.6312 153,936.68
Euro
HKD 13,883,895.00 0.85467 11,866,148.54
CHF 761,008.77 6.773 5,154,312.40
Advance to suppliers
Where: HKD 5,584,615.24 0.85467 4,773,003.11
CHF 3,600,274.88 6.773 24,384,661.76
Other receivables
Where: HKD 9,208,296.98 0.85467 7,870,055.18
CHF 1,334.03 6.773 9,035.39
Accounts payable
Where: HKD 11,283,299.00 0.85467 9,643,497.16
CHF 161,249.16 6.773 1,092,140.56
Advance from customers
Where: HKD 583,606.75 0.85467 498,791.18
Other payables
Where: HKD 2,853,487.12 0.85467 2,438,789.84
CHF 20,329.36 6.773 137,690.76
Short-term Loan
Where: HKD 34,258,558.00 0.85467 29,280,789.52
CHF 600,000.00 6.773 4,063,800.00
Non-current liabilities due
0.00
within a year
Where: HKD 140,081,900.00 0.85467 119,728,000.00
Long term borrowings -- --
Where: USD
Euro
HKD 410,639.00 0.85467 361,928.00
CHF 831,687.00 6.773 5,633,017.50
(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,
143
FIYTA Holdings Ltd. 2016 Semi-Annual Report
refer to Note V.4.
78. Hedging
Inapplicable
79. Others
Inapplicable
VIII. Change in consolidation scope
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 Direct Indirect acquisition
Establishment
HARMONY Shenzhen Shenzhen Commerce 100.00%
or investment
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
Henglianda Establishment
Beijing Beijing Commerce 100.00%
Company 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 Choureit Establishment
Shenzhen Shenzhen Commerce 100.00%
Shenzhen or investment
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
Company
World Watches Establishment
Hong Kong Hong Kong Commerce 100.00%
International or investment
Establishment
Sales Company Shenzhen Shenzhen Commerce 100.00%
or investment
Consolidation of
Hengdarui enterprises
Shenyang Shenyang Commerce 100.00%
Company under common
control
Consolidation of
Lishan
enterprises not
Department Kunming Kunming Commerce 100.00%
under common
Store Co.
control
Consolidation of
Switzerland enterprises not
Switzerland Switzerland Commerce 100.00%
Company under common
control
Nature Art
Hong Kong Hong Kong Commerce ①
Limited
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
(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
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
2. Transaction with a subsidiary with the share of the owner’s equity changed but still under
control
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 method for
venture or business Business nature
registration Direct Indirect investment in
associate location
joint ventures or
associates
①Associate
Shanghai Watch
Shanghai Shanghai Manufacture 25.00% Equity method
Industry
(2) Key financial information of important joint ventures
Inapplicable
(3) Key financial information of important associates
In RMB
Ending balance/amount incurred in the Opening balance/amount incurred in
reporting period the previous period
Current assets 80,975,581.08 85,404,253.13
Non-Current Assets 20,494,397.42 20,902,422.63
Total assets 101,469,978.50 106,306,675.76
Current liabilities 5,799,237.85 9,638,478.88
Non-Current Liabilities 0.00 0.00
Total liabilities 5,799,237.85 9,638,478.88
Minority equity 0.00 0.00
Shareholders’ equity attributable to the
95,670,740.65 96,668,196.88
parent company
Portion of net assets calculated based
23,917,685.16 24,167,049.22
on the shareholding ratio
Adjustment: 0.00 0.00
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
--Goodwill 0.00 0.00
--Unrealized profit of internal
0.00 0.00
transaction
-- Others 0.00 0.00
Book value of the investment in the
42,837,994.24 43,221,572.05
associate’s equity
Fair value of the investment in the
0.00 0.00
associate’s equity with public offer
Operating revenue 38,165,667.56 46,811,242.00
Net profit 688.77 1,220,537.78
Net profit from termination of operation 0.00 0.00
Other comprehensive income 0.00 0.00
Total comprehensive income 688.77 1,220,537.78
Dividend received from the associates
0.00 0.00
in the reporting period
(4) Financial information summary of unimportant joint ventures and associates
Inapplicable
(5) Note to significant restriction on the competence of a joint venture or an associate in
transferring funds to the Company
Inapplicable
(6) Excessive loss incurred to a joint venture or an associate
Inapplicable
(7) Unrecognized commitment in connection with investment in a joint venture
Inapplicable
(8) Contingent liabilities in connection with investment in joint ventures or associates
Inapplicable
4. Important joint operation
Inapplicable
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
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’s major financial instruments consist of monetary funds, accounts receivable, notes receivable, other
receivables, other current assets, available-for-sale financial assets, accounts payable, interest payable, dividend payable,
other payables, short term loan, non-current liabilities due within a year, long term loan, bonds payable. The detailed
information about various financial instruments has been disclosed in the corresponding notes. The risks involved in these
financial instruments and the Group’s risk control policies aiming at reducing these risks are stated as follows. The
Group’s management conducts management and monitoring of these risk exposures so as to ensure risks to be
controlled within a specific limitation.
1. Risk management goals and policies
The goal of 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.
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
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 7.14% of
total accounts receivable of the Group (2015: 7.98%); in other accounts receivable, the total accounts receivable of top 5
accounts with amount in arrear account for 15.40% of total accounts receivable of the Group (2015: 17.79%).
(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 2016, bank borrowing facility that the Group has not yet used is RMB 1,200.14 million (30 June 2016: RMB
881.37 million).
Maturity analysis of financial liabilities and off-balance-sheet guarantee items by undiscounted remaining contract cash
flow at the end of the period (Unit: RMB ten thousand):
Ending balance
Items Within a year one to two two to three Over 3 years Total
years years
Financial assets:
Monetary fund 498,671,980.62 498,671,980.62
Notes receivable 8,808,123,.43 8,808,123.43
Accounts receivable 338,353,834.12 338,353,834.12
Other receivables 46,358,441.80 46,358,441.80
Other current assets 11,059,605.27 11,059,605.27
Other non-current assets 7,458,521.88 7,458,521.88
Total financial assets 910,710,507.12 0.00 0.00 0.00 910,710,507.12
Financial Liabilities:
Short-term Loan 1,183,344,590.08 1,183,344,590.08
Accounts payable 105,071,067.57 105,071,067.57
Interest payable 1,796,850.90 1,796,850.90
Other payables 39,287,003.37 39,287,003.37
Other current liabilities (with
deferred income exclusive) 20,876,226.66 20,876,226.66
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FIYTA Holdings Ltd. 2016 Semi-Annual Report
Long term borrowings 119,728,000.00 15,361,928.00 10,350,973.94 100,133,017. 245,573,919.44
50
Bonds payable 0.00
Financial guarantee 544,572,590.08
513,072,590.0 31,500,000.0
8 0
Total financial liabilities and 1,470,103,748.58 15,361,928.00 523,423,564.0 131,633,017. 2,140,522,258.10
contingent liabilities 2 50
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 thousand RMB):
Ending balance
Items Within a year one to two years two to three Over 3 years Total
years
Financial assets:
Monetary fund 63,896.29 63,896.29
Notes receivable 719.78 719.78
Accounts receivable 31,258.19 31,258.19
Other receivables 4,261.98 4,261.98
Other current assets 1,579.68 1,579.68
Other non-current assets 511.88 511.88
Total financial assets 102,227.80 0.00 0.00 0.00 102,227.80
Financial Liabilities:
Short-term Loan 98,818.62 98,818.62
Accounts payable 15,593.97 15,593.97
Interest payable 1,921.16 1,921.16
Other payables 4,813.16 4,813.16
Other current liabilities (with
deferred income exclusive) 198.83 198.83
Long term borrowings 10,891.40 2,255.35 2,000.00 4,844.15 19,990.90
Bonds payable 40,000.00 40,000.00
Financial guarantee
39,710.02 1,675.60 41,385.62
Total financial liabilities and
contingent liabilities 172,237.14 2,255.35 41,710.02 6,519.75 222,722.26
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.
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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 2016, 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 RMB 1.3647 million (As at 30
June 2016: RMB 0.88 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 RMB. 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
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
2016, the asset-liability ratio of the Group is 41.96% (30 June 2015: 56.09%).
151
FIYTA Holdings Ltd. 2016 Semi-Annual Report
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
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
152
FIYTA Holdings Ltd. 2016 Semi-Annual Report
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,
AVIC International
Shenzhen domestic trade, 116,616.1996 37.15% 37.15%
Holdings
material supply
and distribution
Note to the parent company of the Company:
The Company’s eventual controller is Aviation Industry Corporation of China.
Other note:
CATIC Shenzhen holds 33.93% shareholding of AVIC International Holdings. CATIC Shenzhen 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 eventual controller of the Company is AVIC.
2. Subsidiaries of the Company
Refer to Note IX. 1 for details of subsidiaries of the Company
3. Joint venture and association of the Group
Inapplicable
4. Other related parties of the Group
Relationship between other related parties and the
Names of other related parties
Company
CATIC Property Management Co., Ltd.(CATIC Property) Controlled by the same party
Shenzhen CATIC Building Technology Co., Ltd.(CATIC
Controlled by the same party
Building)
153
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Rainbow Supermarket Co., Ltd. (Rainbow Supermarket ) Controlled by the same party
Shennan Circuits Co., Ltd. (Shennan Circuits) Controlled by the same party
CATIC Real Estate Co., Ltd. (CATIC Real Estate) Controlled by the same party
CATIC Securities Co., Ltd.(CATIC Securities) Controlled by the same party
Xi’an Skytel Hotel Co., Ltd. (Skytel Hotel) Controlled by the same party
Shenzhen AVIC Nanguang Elevator Co., Ltd. (AVIC
Controlled by the same party
Nanguang )
Shenzhen CATIC City Property Development Co.,
Controlled by the same party
Ltd.(CATIC City Property)
Shenzhen CATIC City Development Co., Ltd.(CATIC City
Controlled by the same party
Development)
Shenzhen CATIC Guanlan Property Development Co.,
Controlled by the same party
Ltd.(Guanlan Property )
Shenzhen CATIC Changtai Investment Development Co.,
Controlled by the same party
Ltd.(CATIC Changtai)
Shenzhen CATIC 9 Square Assets Management Co., Ltd.(9
Controlled by the same party
Square Assets)
Ganzhou CATIC Real Estate Development Co.,
Controlled by the same party
Ltd.(Ganzhou CATIC Real Estate)
Shenzhen CATIC City Investment Co., Ltd.(CATIC City
Controlled by the same party
Investment)
Chengdu CATIC Real Estate Development Co.,
Controlled by the same party
Ltd.(Chengdu CATIC Real Estate)
CATIC Electronic Measuring Instruments Co., Ltd(CATIC
Controlled by the same party
Electronic Measuring Instruments)
Shenzhen CATIC Theme Real-estate Co., Ltd (CATIC
Controlled by the same party
Theme Real-estate)
Shenzhen CATIC Group Enterprise Training Center Controlled by the same party
Ganzhou CATIC 9 Square Commerce Co., Ltd.(Ganzhou 9
Controlled by the same party
Square)
Jiujiang CATIC City Real Estate Development Co.,
Controlled by the same party
Ltd.(Jiujiang CATIC Real Estate)
CATIC City Property (Kunshan) Co., Ltd.(CATIC City
Controlled by the same party
Property (Kunshan))
Shenzhen CATIC Huacheng Real Estate Co., Ltd.(CATIC
Controlled by the same party
Huacheng Property )
Shenzhen CATIC Curtain Wall Engineering Co., Ltd.
Controlled by the same party
(CATIC Curtain Wall Engineering )
154
FIYTA Holdings Ltd. 2016 Semi-Annual Report
AVIC Finance Co., Ltd. (AVIC Finance ) Controlled by the same party
Diao Weicheng Senior executive
Xu Dongsheng Senior executive
Wang Mingchuan Senior executive
Liu Aiyi Senior executive
Zhong Sijun Senior executive
Cao Zhen Senior executive
Zhang Hongguang Senior executive
Zhang Shunwen Senior executive
Wang Yan Senior executive
Sui Yong Senior executive
Chen Zhuo Senior executive
Sheng Qing Senior executive
Chen Libin Senior executive
Lu Bingqiang Senior executive
Lu Wanjun Senior executive
Hu Xinglong Senior executive
5. Related transactions
(1) Related transactions of purchase and sale of commodities and supply and acceptance of labor services
Statement of purchase of commodities and acceptance of labor services
In RMB
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
Rainbow Shopping mall
804,897.94 5,000,000.00 No 2,245,772.14
Supermarket expenses
Property
CATIC Property 1,356,331.47 3,000,000.00 No 1,448,900.66
management fee
CATIC Curtain
Engineering fee 210,000.00
Wall Engineering
CATIC Building Engineering fee 890,979.82 89,021.67
CATIC
Engineering fee 100,000.00
Development
AVIC Nanguang Engineering fee 179,313.80
155
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Shanghai Watch Purchase of
128,205.12
Industry materials
Statement of sales of goods/supply of labor services
In RMB
Description of related Amount incurred in the
Related parties Amount incurred in prior period
transaction reporting period
Rainbow Supermarket Products and labor service 35,378,435.06 41,152,135.05
Aviation Industry Corporation
Sales of products 92,208.55 129,774.36
of China
Shennan Circuits Sales of materials 3,326,724.20 8,308,488.66
(2) Related entrusted management/contracted and mandatory management/contracting
Inapplicable
(3) Related lease
The Company as lessor:
In RMB
Categories of leasehold Rental income recognized in Rental income recognized in
Names of lessees
properties the current period prior period
CATIC Real Estate Building 800,003.94 766,714.84
CATIC Property Building 3,745,420.80 1,330,272.00
CATIC Securities Building 578,548.58 562,320.00
CATIC City Property Building 292,804.66 82,563.86
CATIC City Development Building 11,834.37 11,341.94
Guanlan Property Building 47,337.51 45,367.74
CATIC Changtai Building 480,384.00
Skytel Hotel Building 2,300,000.00 2,350,000.00
Rainbow Supermarket Building 242,761.30 230,640.02
9 Square Assets Building 178,932.00 181,818.00
CATIC City Investment Building 729,392.16 218,657.29
CATIC Theme Real-estate Building 353,338.00
CATIC Huacheng Property Building 221,560.96 55,960.08
Company as a lessee:
In RMB
Name of lessor Type of leased assets Rental expenses charged in Rental expenses charged in
156
FIYTA Holdings Ltd. 2016 Semi-Annual Report
current period prior period
Ganzhou CATIC Real Estate Building 531,426.25 509,379.75
Jiujiang CATIC Real Estate Building 138,605.81 153,054.77
CATIC Changtai Building 142,709.78 85,154.99
CATIC City Property
Building 93,690.83
(Kunshan)
Chengdu CATIC Real Estate Building 400.00
(4) Related guarantee
The Company as a guarantor
In RMB
If the guarantee
Guarantees Amount guaranteed Effective date Expiring date
finished?
HARMONY 50,000,000.00 November 20, 2015 November 19, 2018 No
HARMONY 60,000,000.00 December 2, 2015 December 1, 2018 No
HARMONY 50,000,000.00 December 2, 2015 August 12, 2018 No
HARMONY 100,000,000.00 December 30, 2015 December 19, 2018 No
FIYTA Hong Kong 42,735,000.00 July 11, 2013 July 11, 2018 No
FIYTA Hong Kong 42,735,000.00 August 5, 2013 August 5, 2018 No
FIYTA Hong Kong 17,094,000.00 January 6, 2014 July 11, 2018 No
FIYTA Hong Kong 17,164,000.00 March 3,2014 January 11, 2019 No
FIYTA Hong Kong 19,708,150.08 September 16, 2015 September 15, 2018 No
FIYTA Hong Kong 5,982,900.00 July 9, 2015 July 8, 2018 No
FIYTA Hong Kong 3,589,740.00 May 18, 2016 May 18, 2019 No
FIYTA Hong Kong 4,063,800.00 June 8, 2016 June 8, 2019 No
The Company as the guarantee
In RMB
If the guarantee
Guarantors Amount guaranteed Effective date Expiring date
finished?
AVIC International 361,928.00 Decenver 24, 2013 December 25, 2018 No
AVIC International 5,000,000.00 January 15, 2014 June 24, 2019 No
AVIC International 10,000,000.00 September 5, 2014 June 24, 2020 No
AVIC International 10,000,000.00 January 8, 2015 June 24, 2020 No
AVIC International 20,000,000.00 January 26, 2015 June 24, 2021 No
AVIC International 6,000,000.00 May 27, 2015 June 24, 2021 No
157
FIYTA Holdings Ltd. 2016 Semi-Annual Report
AVIC International 10,000,000.00 October 28, 2015 June 24, 2021 No
AVIC International 7,000,000.00 December 1, 2015 December 24, 2021 No
AVIC International 15,000,000.00 January 25, 2016 December 23, 2025 No
AVIC International 10,000,000.00 January 15, 2016 December 23, 2025 No
AVIC International 2,000,000.00 April 20, 2016 December 23, 2025 No
AVIC International 7,500,000.00 May 5, 2016 December 23, 2025 No
AVIC International 17,000,000.00 May 19, 2016 December 23, 2025 No
HARMONY 100,000,000.00 April 11, 2016 April 11, 2019 No
(5) Borrowings and lendings among related parties
Inapplicable
(6) Assets assignment and liabilities reorganization of related parties
Inapplicable
(7)Remuneration to senior executives
Items Amount incurred in the reporting period Amount incurred in the previous period
Remuneration to senior executives 4,230,100.00 4,704,100.00
(8) Other related transactions
Inapplicable
6. Accounts receivable from and payable to related parties
(1) Receivables
In RMB
Ending balance Opening balance
Description Related parties
Book balance Bad debt provision Book balance Bad debt provision
Accounts Rainbow
12,446,569.27 622,328.46 8,012,826.57 400,641.33
receivable Supermarket
Shennan Circuits 1,087,057.65 54,352.88 1,474,023.97 73,701.20
Ganzhou 9 Square 150,393.00 7,519.65 289,621.00 14,481.05
Aviation Industry
Corporation of 31,808.00 1,590.40 13,500.00 675.00
China
158
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Notes receivable Shennan Circuits 2,705,209.46 135,260.47 5,697,788.08 0.00
Rainbow
Other receivables 708,130.00 35,406.50 563,140.00 28,157.00
Supermarket
CATIC Property 504,518.88 25,225.94 225,853.69 11,292.68
Ganzhou 9 Square 0.00 0.00 122,665.60 6,133.28
Chengdu CATIC
0.00 0.00 115,616.40 5,780.82
Real Estate
CATIC Changtai 50,000.00 2,500.00 50,000.00 2,500.00
Jiujiang CATIC
Real Estate Co., 50,000.00 2,500.00 50,000.00 2,500.00
Ltd.
CATIC City
Property 42,120.00 2,106.00 37,120.00 1,856.00
(Kunshan)
Ganzhou CATIC
122,665.60 6,133.28 0.00 0.00
Real Estate
CATIC City
97,513.42 4,875.67 0.00 0.00
Property
CATIC Huacheng
77,617.68 3,880.88 0.00 0.00
Property
Shenzhen CATIC
Group Enterprise 150,000.00 7,500.00 0.00 0.00
Training Center
(2) Payables
In RMB
Description Related parties Ending book balance Opening book balance
Advance receipt CATIC Real Estate 133,848.00 133,848.00
Rainbow Supermarket 39,119.05 0.00
CATIC City Development 1,980.00 0.00
CATIC Property 45,165.82 0.00
Other payables CATIC Property 472,032.00 472,032.00
CATIC Real Estate 424,800.00 424,800.00
CATIC City Investment 244,068.00 244,068.00
CATIC Securities 187,440.00 187,440.00
CATIC City Property 97,912.32 97,912.32
159
FIYTA Holdings Ltd. 2016 Semi-Annual Report
CATIC Huacheng Property 73,819.68 73,819.68
9 Square Assets 60,606.00 60,606.00
Rainbow Supermarket 60,000.00 60,000.00
Chengdu CATIC Real Estate 16,492.75
CATIC Building 23,765.46 9,630.00
CATIC City Development 3,960.00 3,960.00
7. Related parties’ commitments
Inapplicable
8. Others
The Group’s outstanding of deposits with AVIC Finance at the end of the reporting period amounted to RMB 1,005,192.55,
of which the interest of the deposit received in the reporting period amounted to RMB 2,320.90.
XIII. Stock payment
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 recognized End of the reporting Beginning of the
in the financial statements period reporting period
Commitment for purchase/ construction of long term assets 62,019,127.85 142,640,588.31
(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
1st year after the balance sheet date 17,658,908.30 14,437,021.28
2nd year after the balance sheet date 17,795,643.50 18,385,548.63
160
FIYTA Holdings Ltd. 2016 Semi-Annual Report
3rd year after the balance sheet date 7,804,932.25 8,701,355.74
Subsequent years 5,243,340.51 3,008,648.97
Total 48,502,824.56 44,532,574.62
(3) Other commitments
There existed no other commitments necessary to be disclosed ended 30th June, 2016.
2. Contingencies
(1) Significant contingencies existing as at the balance sheet day
(1) Contingent liabitlies arising from debt guarantee for other organizations and the consequent affect on the finance.
For the details about the outward guarantees to various companies within the consolidation and the mutual guarantees
with the parent company and subsidiaries, refer to Note XII.5(4).
(2) There existed no such contingenies as unsettled suit, outward guarantee, etc. necessary to be disclosed ended June
30, 2016.
(3) There existed no other contingenies necessary to be disclosed in the Group ended June 30, 2016.
(2) Important contingencies unnecessary to be disclosed but necessary to be explained
There existed no such contingencies in the Company.
3. Others
Inapplicable
XV. Events after balance sheet day
1. Significant non-adjustment events
Inapplicable
2. Profit distribution
In RMB
Profit or dividend planned to be distributed 43,874,488.10
Profit or dividend announced for distribution through
43,874,488.10
consideration and approval
161
FIYTA Holdings Ltd. 2016 Semi-Annual Report
3. Sales return
Inapplicable
4. Note to other matters after the balance sheet date
Inapplicable
XVI. Other significant events
Inapplicable
XVII. Notes to the parent company’s financial statements
1. Accounts receivable
Inapplicable
2. Other receivables
(1) Disclosure of classification of other receivables
In RMB
Ending balance Opening balance
Provision for bad Provision for bad
Book Balance Book Balance
debt debt
Categories Book Book
Provisio
Proporti n value Amoun Proporti Provision value
Amount Amount Amount
on proporti t on proportion
on
Other receivables
for which bad debt
reserve has been 1,527,
1,259,89 27,552.4 1,259,86 100.00 27,552.4 1,527,756,
provided based on 784,36 5.00%
6,942.24 1 9,389.83 % 1 817.18
the portfolio with 9.59
credit risk
characteristics
Individually
insignificant other
receivables for
0 0 0.00 0 0 0 0
which bad debt
reserve has been
separately provided
Total 1,259,89 27,552.4 1,259,86 1,527, 100.00 27,552.4 1,527,756,
162
FIYTA Holdings Ltd. 2016 Semi-Annual Report
6,942.24 1 9,389.83 784,36 % 1 817.18
9.59
Other receivables that are individually significant in amount and provided for bad debt separately at the end of period:
Inapplicable
In the portfolio, other receivables with provision for bad and doubtful debts based on aging analysis method:
In RMB
Ending balance
Age
Other receivables Provision for bad debt Provision proportion
Itemized based on those within 1 year
Sub-total within 1 year 2,593,468.98 27,552.41 5.00%
Total 2,593,468.98 27,552.41
Note to the basis for determiing that portfolio:
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 accounts 1,257,303,473.26 - -
Based on historical experience, the Group’s 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 RMB 0.00 in current period; The amount received or reversed bad debt provision in current
period was RMB 100,572.48.
(3) Other receivables actually written off in the current period
Inapplicable
(4) Classification of the other receivables based on the nature of fund
In RMB
Nature of Payment Ending book balance Opening book balance
Dealings among related parties within the
1,257,171,983.27 1,527,077,899.87
consolidation scope
Reserve 131,489.99 155,421.46
163
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Deposit in security 104,050.00 64,050.00
Others 2,489,418.98 486,998.26
Total 1,259,896,942.24 1,527,784,369.59
(5) Other receivables attributable to the top five debtors of the ending balance
In RMB
Proportion in total Ending balance of
Company names Nature of Payment Ending balance Age ending balance of the provision for
other receivables bad debts
HARMONY Current accounts 902,246,064.08 Within 1 year 71.61%
Within 1 year
271,222,797.15
Sales Company Current accounts 277,056,189.61 21.99%
1-2 years
5,833,392.46
Emile Choureit
Current accounts 61,172,432.93 Within 1 year 4.86%
Shenzhen Company
Within 1 year
Technology 4,176,512.77
Current accounts 13,591,901.58 1.08%
Company 1-2 years
9,415,388.81
Manufacture Co. Current accounts 1,612,099.65 Within 1 year 0.13%
Total -- 1,255,678,687.85 --
(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 RMB
Items Ending balance Opening balance
164
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Impairment Impairment
Book Balance Book value Book Balance Book value
reserve reserve
Investment in 1,213,169,720.0 1,213,169,720.0
0.00 770,899,720.00 0.00 770,899,720.00
subsidiaries 0 0
Investment in
associates and 42,837,994.24 0.00 42,837,994.24 43,221,572.05 0.00 43,221,572.05
joint ventures
1,256,007,714.2 1,256,007,714.2
Total 0.00 814,121,292.05 0.00 814,121,292.05
4 4
(1) Investment in subsidiaries
In RMB
Provision
Ending balance
Opening Increase in the Decrease in the reserve
Investees Ending balance of the provision
balance reporting period reporting period provided in the
for impairment
reporting period
HARMONY 601,307,200.00 601,307,200.00
Harbin Company 125,000.00 125,000.00
Manufacture Co. 9,000,000.00 9,000,000.00
Technology
10,000,000.00 10,000,000.00
Company
FIYTA (Hong
95,467,520.00 42,270,000.00 137,737,520.00
Kong) Limited
Trading
5,000,000.00 5,000,000.00
Company
Sales Company 50,000,000.00 400,000,000.00 450,000,000.00
1,213,169,720.
Total 770,899,720.00 442,270,000.00 0.00
00
(2) Investment in joint venture and associates
In RMB
Increase/ Decrease (+ / -) in the reporting period Ending
Other Announ balance
Addition compreh Other ced for Provision of the
Opening Ending
Investors al ensive equity distributi for provision
balance Others balance
investme income moveme ng cash impairme for
nt adjustme nt dividend nt impairme
nt or profit nt
165
FIYTA Holdings Ltd. 2016 Semi-Annual Report
I. Joint Venture
II. Associates
Shangha
43,221,5 383,750. 42,837,9
i Watch 172.19 0.00
72.05 00 94.24
Industry
43,221,5 383,750. 42,837,9
Sub-total 172.19 0.00
72.05 00 94.24
43,221,5 383,750. 42,837,9
Total 172.19 0.00
72.05 00 94.24
(3) Other notes
Inapplicable
4. Operating revenue and operating costs
In RMB
Amount incurred in the reporting period Amount incurred in the previous period
Items
Income Cost Income Cost
Principal business 49,145,205.51 6,783,241.62 47,530,000.90 6,946,511.39
Total 49,145,205.51 6,783,241.62 47,530,000.90 6,946,511.39
5. Return on investment
In RMB
Amount incurred in the reporting
Items Amount incurred in the previous period
period
Income from long term equity investment
135,344,660.36 131,388,140.58
based on cost method
Income from long term equity investment
172.19 250,015.75
based on equity method
Total 135,164,238.91 131,638,156.33
6. Others
Inapplicable
XVIII. Supplemental Information
1. Details of non-recurring gain or loss for the year
In RMB
166
FIYTA Holdings Ltd. 2016 Semi-Annual Report
Items Amount Note:
It refers to the gain or loss from
Gain/loss from disposal of non-current
-83,873.03 disposal of partial obsolete office fixed
assets
assets
Government grants included in current
profit or loss (except for the fixed or
For the detail, refer to Note VII. And
quantitative government grants, enjoyed
XVIII: Description of government
in a consecutive way, which closely 815,000.00
subsidy counted to the current gain or
related to the enterprise businesses and
loss
according to certain state policies and or
on a nation-wide unified standard)
Other non-operating income and Other various non-operating revenue
142,264.29
expenses other than the above items and expenditure
Less: amount of income tax affected 152,781.66
Total 720,609.60 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering their Securities to the Public – Non-recurring Gains and Losses and its non-recurring
gain/loss items as illustrated in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
their Securities to the Public – Non-recurring Gains and Losses which have been defined as recurring gains and losses, it
is necessary to explain the reason.
Inapplicable
2. ROE and EPS
Earnings per share
Net assets-income ratio, weighted
Profit of the report period Basic earnings per Diluted earnings per
average
share, in RMB/share share (RMB/share)
Net profit attributable to the
Company’s shareholders of 2.58% 0.1375 0.1375
ordinary shares
Net profit attributable to the
Company’s shareholders of
2.55% 0.1359 0.1359
ordinary shares less
non-recurring gains and loss
167
FIYTA Holdings Ltd. 2016 Semi-Annual Report
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
168
FIYTA Holdings Ltd. 2016 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 Company’s documents and announcements disclosed in the newspapers (Securities Times
and Hong Kong Commercial Daily) designated by China Securities Regulatory Commission.
169
