FIYTA Precision Technology Co., Ltd. 2020 First Quarter Report, Summary
Stock Code: 000026 200026 Short Form of Stock: FIYTA , FIYTA B Announcement No: 2020-022
FIYTA Precision Technology Co., Ltd.
2020 First Quarter Report, Summary
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FIYTA Precision Technology Co., Ltd. 2020 First Quarter Report, Summary
Section 1 Important Notice
The Board of Directors, the Supervisor y 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.
All the directors attended the board meeting for reviewing the Quarter Report.
Huang Yongfeng, the Company leader, Chen Zhuo, chief financia l officer, and Tian Hui, the manager of the
accounting department (treasurer) hereby confirm the authenticity and completeness of the financial report
enclosed in this Quarter Report.
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FIYTA Precision Technology Co., Ltd. 2020 First Quarter Report, Summary
Section 2 Company Profile
I. Summary of Accounting/Financial Data
Does the Company need to make retroactive adjustment or restatement of the accounting data of the previous years
No
Year-on-year
Same period of the previous
Reporting period increase/decrease in the
year
reporting period
Revenue in CNY 588, 361,057.06 893, 389,751.73 -34.14%
Net profit attributable to the Company’s
-12,974, 795.53 64,359,084.45 -120.16%
shareholders, in CNY
Net profit attributable to the Company’s
shareholders less the non-recurring items, in -13,738, 773.72 61,517,359.28 -122.33%
CNY
Net cash flows arising from operating activities,
-106,747,751.88 10,730,388.47 -1,094.82%
in CNY
Basic earning per share (CNY/share) -0.0294 0.1467 -120.04%
Diluted earning per share (CNY/share) -0.0294 0.1453 -120.23%
Return on equity, weighted average -0.49% 2.47% -2.96%
Increase/decrease at the end
End of the reporting period End of the previous year of the year over the end of the
previous year
Total assets (in CNY) 3,651,180,885.03 3,760,923,285.37 -2.92%
Net profit attributable to the Company’s
2,635,350,676.43 2,654,533,766.99 -0.72%
shareholders, in CNY
Non-recurring gain/loss items and the amount involved
In CNY
Amount from the year beginning
Items Note
to the end of the reporting period
Gain/loss from disposal of non-current assets, including the part offset
-62,305. 15
from the provision for impairment of assets.
The government subsidies included in the profits and losses of the
current period ( (excluding government grants which are closely related
742, 609.63
to the Company’s business and conform with the national standard
amount or quantity)
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FIYTA Precision Technology Co., Ltd. 2020 First Quarter Report, Summary
Other non-operating income and expenses other than the aforesaid
268, 428.02
items
Less: Amount affected by the income tax 184, 754.31
Total 763, 978.19 --
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
II. Statement of total shareholders and shares held by the top 10 shareholders by the end of the reporting period
1. Quantity of the shares held by the common shareholders and preferred shareholders whose voting rights are
restored and statement of shareholding by the top 10 shareholders
In shares
Total preference shareholders with the
Total common shareholders at the end
37,827 voting power recovered at the end of the 0
of the reporting period
reporting period (if any)
Shareholding by top 10 shareholders
Number of the Pledging or freezing
Names of the Nature of the Shareholding Shareholding
restricted shares Status of the
Shareholders shareholder proportion quantity Quantity
held shares
AVIC International
State corporate 36.79% 162, 977,327 0
Holding Limited
Domestic natural
#Yang Zugui 3.84% 17,018,806 0
person
Domestic natural
Yang Sancai 1.17% 5,202,700 0
person
ZHONGYIN FUND
- ICBC - Shanghai
Domestic
Haitong Securities
non-state-owned 0.23% 999, 200 0
& Assets
legal person
Management Co.,
Ltd.
Domestic natural
Zhang Xuewei 0.22% 958, 000 0
person
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FIYTA Precision Technology Co., Ltd. 2020 First Quarter Report, Summary
Penghua Fund -
Minsheng Bank - Domestic
Penghua Fund - non-state-owned 0.21% 951, 700 0
Huili No. 1 Assets legal person
Management Plan
Domestic natural
Ma Xinting 0.20% 900, 000 0
person
Domestic natural
# Li Enhai 0.20% 883, 500 0
person
Domestic natural
# Shen Xuewen 0.20% 883, 420 0
person
Domestic natural
Liang Shaoyun 0.18% 781, 312 0
person
Shares held by top 10 shareholders of unrestricted shares
Share type
Names of the Shareholders Quantity of unrestricted shares held a
Share type Quantity
CNY ordinary
AVIC International Holding Limited 162, 977,327 162, 977,327
shares
CNY ordinary
#Yang Zugui 17,018,806 17,018,806
shares
CNY ordinary
Yang Sancai 5,202,700 5,202,700
shares
ZHONGYIN FUND - ICBC - Shanghai
CNY ordinary
Haitong Securities & Assets 999, 200 999, 200
shares
Management Co., Ltd.
CNY ordinary
Zhang Xuewei 958, 000 958, 000
shares
Penghua Fund - Minsheng Bank -
CNY ordinary
Penghua Fund - Huili No. 1 Assets 951, 700 951, 700
shares
Management Plan
CNY ordinary
Ma Xinting 900, 000 900, 000
shares
CNY ordinary
# Li Enhai 883, 500 883, 500
shares
CNY ordinary
# Shen Xuewen 883, 420 883, 420
shares
CNY ordinary
Liang Shaoyun 781, 312 781, 312
shares
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FIYTA Precision Technology Co., Ltd. 2020 First Quarter Report, Summary
Explanation on associated relationship
or consistent action of the above Inapplicable
shareholders
Note to the top 10 shareholders involved
in margin financing & securities lending Inapplicable
(if any)
Did the top ten common shareholders or top ten shareholders of unrestricted common shares conduct contractual
repurchase during the reporting period?
No
2. Total preferred shareholders and the shareholding by the top 10 preferred shareholders
Inapplicable
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FIYTA Precision Technology Co., Ltd. 2020 First Quarter Report, Summary
Section 3 Significant Events
I. Changes of the major financial data and fina ncial indicators during the reporting period and the causes
(I) Balance sheet items
Items Amount at the end of the Amount at the year Variation proportion (% ) Cause of the movement
reporting period beginning
Advance payments 17,670,023. 88 10,847,962.28 62.89% It was mainly due to increase of
the advance payment during
the reporting period over the
year beginning
Accounts payable 109, 655,368.72 279, 772,787.37 -60.81% It was mainly due to partial
payment for goods procured
during the reporting period
Advance receipts 11,669, 963.64 23,433,463.57 -50.20% It was mainly due to decrease
of the advances on sales during
the reporting period over the
year beginning
Payroll payable 43,225,454. 85 82,602,845.67 -47.67% Mainly consists of the
commissions of the previous
year,the year-end bonus, etc.
payable to employees during
the reporting period
(II) Profit Statement I tems
Items Reporting period Same period of the previous Variation proportion (% ) Cause of the movement
year
Operating revenue 588, 361,057.06 893, 389,751.73 -34.14% Mainly due to the impact of
COVID-19 epidemic upon the
revenue from the watch
industry
Taxes and surcharges 3,674,419.66 7,967,226.11 -53.88% Decrease of VAT, etc. was
mainly due to the impact from
the decline of the operation
revenue during the reporting
period
Other income 742, 609.63 3,807,765.25 -80.50% Mainly due to decrease of the
government subsidy received
during the reporting period
Operation profit -18,792, 471.52 82,187,315.46 -122.87% Mainly due to decrease of the
operation revenue during the
reporting period
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FIYTA Precision Technology Co., Ltd. 2020 First Quarter Report, Summary
(III)Items of Cash Flow Statement
Items Reporting period Same period of the previous Variation proportion (% ) Cause of the movement
year
Net cash flows arising -106,747,751.88 10,730,388.47 -1094.82% It mainly refers to the decrease
from operating activities of sales revenue collection
during the reporting period
affected by the decline in
operation revenue
Net cash flow arising from -24,341, 946.96 -50,729, 730.85 -52.02% It mainly refers to the decrease
investment activities of the capital input for store
improvement during the
reporting period compared with
the same period of last year
and the project payment paid
for FIYTA Clock Building in the
same period of the previous
year.
Net cash flow arising from 82,992,799. 27 22,731,443.97 265. 10% It was mainly due to the mild
capital-raising activities increase of the bank loans over
the same period of the previous
year during the reporting period
Net increase of cash and -48,188, 978.55 -17,400, 331.36 176. 94% It mainly refers to the decrease
cash equivalents of sales revenue collection
during the reporting period
affected by the decline in
operation revenue
FIYTA's principal business activities are watch brand management and watch retails. The sudden outbreak of COVID -19
at the beginning of 2020 resulted in a serious negative impact on the offline consumption. During the reporting period, the
company launched the "War System", strictly in accordance with the deployment of the central government and superiors,
and did its best to prevent and control the epidemic. In order to cope with the impact of the epidemic on the business, the
Company quickly adjusted its business strategy, made full efforts to promote cost control, and strengthened cash flow
management. While carrying forward the resumption of work and production of offline channels, the Company also
accelerated the investment in online platforms, and actively expanded community marketing and social marketing through
WeChat, live show, etc. Judging from the performance of the operating data in each month of the first quarter, the
Company showed a robust market recovery ability and strong adaptability to the adjustment. In February, the month
worst affected by the epidemic, the Company's business revenue fell by more than 70% year on year and recorded a
substantial loss.In march, with the operating environment still extremely difficult, the Company's revenue returned to about
70% of the level of the same period last year with only a slight deficit. It is expected that the Compan y as a whole may
achieve monthly profit in April and gradually turn to normal in the second quarter. After the baptism with the epidemic, our
team shall be further enhanced in its combat capability.
At present, it is still uncertain about the development trend of the epidemic both at home and abroad and its subsequent
impact on the consumer market. The Company shall pay close attention to and actively cope with the situation. Under the
personal direction of General Secretary Xi Jinping, China has brought the epidemic under fundamental control. The
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FIYTA Precision Technology Co., Ltd. 2020 First Quarter Report, Summary
Chinese government is trying every means to support the whole people to get through this tough time with various policies
and promote the economy recovery. At present, the Company has restored its production and o peration basically to
normal, the rate of employees’ return to work has exceeded 96%, and there is no confirmed COVID -19 case; the
Company's offline sales channels have been basically restored to operation, and the sales have been improved day by
day. The order delivery of the Company's precision technology and smart watches and other innovative business as well
as the launch of new smart watches are being carried out in an planned way and the Company is maintaining a good
momentum of growth in its business . The Company shall continue to take "brand power, product power and channel
power" as the core, speed up the digital transformation, strengthen the competitive superiority; shall increase investment
in precision technology to build hard core strength; accelerate innovation-driven development, and promote the
Company's overall business to smart retail and high-end precision technology transformation and upgrading. The
Company believes that all the above work shall provide the Company with continuous impetus to meet market
opportunities and sustainable development in the future.
II. Progress of significant events, their effects and analysis on the solutions
Repurchase and Cancellation of the Partially Restricted Shares Involved in 2018 A Share Restricted Stoc k
Incentive Plan (Phase 1)
The 3rd session of the Ninth Board of Directors held on November 12, 2018 and 2019 1st Extraordinary General Meeting
held on January 11, 2019 decided to start 2018 A-Share Restricted Stock Incentive Program (Phase I), which was later on
reviewed and approved at the 5th session of the Ninth Board of Directors held on January 11, 2019, and the Company
eventually granted 4.224 million restricted A-shares to 128 persons eligible for the incentive. For the detail, refer to the
relevant announcement disclosed in the Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn on
January 12, 2019. This part of A-share restricted shares was all granted and registered for listing by January 30, 2019.
As three original incentive objects of the above incentive plan, namely Wu Yue (27,000 shares granted), Yang Shu zhi
(20,000 shares granted), Lin Yichao (20,000 shares granted) have resigned, according to the 2018 A-Share Restricted
Stock Incentive Plan (Phase I) (Draft Revision), they have no longer met the incentive conditions. The 15th session of
the Ninth Board of Directors held on January 10, 2020 and the 16th Session of the Board of Directors held on March 18,
2020 reviewed and approved the "Proposal on the Repurchase and Cance llation of Partial Restricted Shares in the 2018
A-Share Restricted Stock Incentive Plan (Phase I), according to which the Company was going to repurchase and cancel
67,000 A-share restricted shares held by the aforesaid three incentive objects, already granted but not yet lifted. The said
proposal is still necessary to be submitted to 2020 1st Extraordinary General Meeting for approval before implementation.
Inquiry index of the provisional reports
General on Significant Events Date of disclosure
disclosed in the website.
Announcement on the Resolution of the 15th
Session of the Ninth Board of Directors, January 11, 2020 www.cninfo.com.cn
2020-003
Announcement on Repurchase and
Cancellation of the Partially Restricted
January 11, 2020 www.cninfo.com.cn
Shares Involved in 2018 A Share Restricted
Stock Incentive Plan (Phase I) 2020-005
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FIYTA Precision Technology Co., Ltd. 2020 First Quarter Report, Summary
Announcement on the Resolution of the 16th
Session of the Ninth Board of Directors, March 20, 2020 www.cninfo.com.cn
2020-011
Announcement on Repurchase and
Cancellation of the Partially Restricted
March 20, 2020 www.cninfo.com.cn
Shares Involved in 2018 A Share Restricted
Stock Incentive Plan (Phase I) 2020-016
Notice on Holding 2020 1st Extraordinary
March 27, 2020 www.cninfo.com.cn
General Meeting 2020-018
Progress of implementation of the stock repurchase
The 7th session of the Ninth Board of Directors held on April 4, 2019 and 2019 2nd Extraordinary General Meeting held on
April 23, 2019, reviewed and approved the “Proposal for the Repurchase of Partial Domestically Listed Foreign Shares
(B-shares) in the Company, and subsequently the Company disclosed the repurchase report and published a series of
announcements on the progress in accordance with relevant regulations. For detail of the above, please refer to the
relevant announcements disclosed by the Company in the Securities Times, Hong Kong Commercial Daily and
www.cninfo.com.cn.
As of the end of the reporting period, the Company repurchased 13,730,000 shares in the Company by way of centralized
bidding, accounting for 3.10% of the Company's total capital stock; the highest transaction price of the repurchased
shares was HK$6.56 per share, and the lowest transaction price was HK$5.55/share, the total amount paid has been
HK$83,367,947.33 (excluding stam p duty, commission, and other transaction expenses.) The Company’s repurchase of
the shares was in compliance with the relevant laws and regulations and in line with the Company's established
repurchase program.
Progress of implementation of reduction of the holding size of the shares repurchased by centralized bidding
Inapplicable
III. Commitments unfinished in implementation by the Company's actual controller, shareholders, related parties,
acquirer and the Company, etc. in the reporting period
Inapplicable
IV. Portfolio investment
Inapplicable
V. Entrusted financial management
Inapplicable
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FIYTA Precision Technology Co., Ltd. 2020 First Quarter Report, Summary
VI. Investment in derivatives
Inapplicable
VII. Registration Form of Activities of Reception for Investigation and Sur vey, Communications, Interviews, etc.
in the Reporting Period
Index of Basic Information on the
Time of Reception Way of Reception Types of Visitors Received
Investigation and Survey
http://irm.cninfo.com.cn/ircs/company/compa
January 08, 2020 Field survey Institution nyDetail?stockcode= 000026&orgId=gssz000
0026
VIII. Outward guarantee against regulations
Inapplicable
IX. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and its Related Parties
Inapplicable
FIYTA Precision Technology Co., Ltd.
Board of Directors
April 10, 2020
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