FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Summary
Stock Code: 000026 200026 Short Form of Stock: FIYTA, FIYTA B Announcement No: 2020 - 065
FIYTA Precision Technology Co., Ltd.
2020 Third Quarter Report, Summary
FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Summary
Section 1 Important Notice
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.
All the directors attended the board meeting for reviewing the Quarter Report.
Huang Yongfeng, the Company leader, Chen Zhuo, the chief financial officer, and Tian Hui, the manager of the
accounting department (treasurer) hereby confirm authenticity, accuracy and completeness of the financial report
enclosed in the Quarter Report.
FIYTA Precision Technology Co., Ltd. 2020 Third 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 year
No
Year-on-year increase/decrease
End of the reporting period End of the previous year
in the reporting period
Total assets, in CNY 4,028,147,973.14 3,760,923,285.37 7.11%
Net assets attributable to the
2,747,088,050.30 2,654,533,766.99 3.49%
Company’s shareholders, in CNY
Year-on-year
Increase/decrease as of
From the year beginning increase/decrease from
the reporting period over
Reporting period to the end of the the year beginning to the
the same period of the
reporting period end of the reporting
previous year
period
Revenue in CNY 1,362,598,720.97 42.73% 2,944,433,436.00 7.47%
Net profit attributable to the
137,048,377.83 148.12% 214,787,284.13 20.17%
Company’s shareholders, in CNY
Net profit attributable to the
Company’s shareholders less the non- 129,723,577.01 133.96% 198,393,054.46 17.34%
recurring items, in CNY
Net cash flows arising from operating
112,503,592.52 -22.79% 216,148,827.79 -29.07%
activities, in CNY
Basic earning per share, in CNY/share 0.3165 153.00% 0.4940 22.31%
Diluted earning per share, in
0.3165 153.00% 0.4940 22.31%
CNY/share
Return on equity, weighted average 4.99% 2.94% 7.91% 1.17%
Non-recurring gain/loss items and the amount involved
In CNY
Amount from the year beginning
Items to the end of the reporting Note
period
Gain/loss from disposal of non-current assets, including the part offset
-376,069.86
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
20,135,145.46
to the Company’s business and conform with the national standard
amount or quantity)
Accounts receivable separately tested for impairment and reversal of
134,236.87
the impairment provision of contract assets
Other non-operating income and expenses other than the aforesaid
1,288,291.48
items
Less: Amount affected by the income tax 4,787,374.28
Total 16,394,229.67 --
FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Summary
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. State ment 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 and preferred shareholders whose voting rights are recovered and
statement of shareholding by the top 10 shareholders
In shares
Total preference shareholders
Total common shareholders at the end with the voting power recovered
23,854 0
of the reporting period at the end of the reporting period
(if any)
Shareholding by top 10 shareholders
Pledging or freezing
Number of the
Names of the Nature of the Shareholding Shareholding
restricted shares
Shareholders shareholder proportion quantity Status of the
held Quantity
shares
AVIC International
State corporate 38.07% 162,977,327 0
Holding Limited
China Construction
Bank Corporation -
Penghua Value Domestic non-
Advantage Hybrid state-owned legal 1.25% 5,331,735 0
Securities person
Investment Fund
(LOF)
JPMORGAN
CHASE Overseas legal
1.07% 4,598,412 0
BANK,NATIONAL person
ASSOCIATION
Domestic natural
# Huang Xuhua 0.93% 3,998,594 0
person
Domestic natural
Song Jianbo 0.65% 2,790,000 0
person
China Construction
Bank Corporation -
Rongtong Internet Domestic non-
Media Flexible state-owned legal 0.58% 2,470,000 0
Configuration person
Hybrid Securities
Investment Fund
Domestic natural
# Zheng Zhenhong 0.58% 2,467,500 0
person
Domestic natural
# Jin Xiaojing 0.50% 2,159,900 0
person
Hua An Fund -
Fujiangnan
Shengfu Tian Ying Domestic non-
Plan A, Issue state-owned legal 0.47% 2,000,500 0
S1601 - 01 - Hua person
An Fund -
Jiangnan Rural
Commercial Bank
FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Summary
Single Asset
Management Plan
Domestic natural
# Zhu Kaisheng 0.42% 1,784,126 0
person
Shares held by top 10 shareholders of unrestricted shares
Share type
Names of the Shareholders Quantity of unrestricted shares held
Share type Quantity
CNY ordinary
AVIC International Holding Limited 162,977,327 162,977,327
shares
China Construction Bank Corporation -
CNY ordinary
Penghua Value Advantage Hybrid 5,331,735 5,331,735
shares
Securities Investment Fund (LOF)
JPMORGAN CHASE BANK, CNY ordinary
4,598,412 4,598,412
NATIONAL ASSOCIATION shares
CNY ordinary
# Huang Xuhua 3,998,594 3,998,594
shares
CNY ordinary
Song Jianbo 2,790,000 2,790,000
shares
China Construction Bank Corporation -
Rongtong Internet Media Flexible CNY ordinary
2,470,000 2,470,000
Configuration Hybrid Securities shares
Investment Fund
CNY ordinary
# Zheng Zhenhong 2,467,500 2,467,500
shares
CNY ordinary
# Jin Xiaojing 2,159,900 2,159,900
shares
Hua An Fund - Fujiangnan Shengfu
Tian Ying Plan A, Issue S1601 - 01 -
CNY ordinary
Hua An Fund - Jiangnan Rural 2,000,500 2,000,500
shares
Commercial Bank Single Asset
Management Plan
CNY ordinary
# Zhu Kaisheng 1,784,126 1,784,126
shares
Explanation on associated relationship
or consistent action of the above Inapplicable
shareholders
Note to the top 10 shareholders
involved in margin financing & securities Inapplicable
lending (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
FIYTA Precision Technology Co., Ltd. 2020 Fourth Quarter Report, Summary
Section 3 Significant Events
I. Changes of the major financial data and financial indicators during the reporting period and the causes
(I) Balance sheet items
Variation
Items Ending balance Opening balance Cause of the movement
proportion
Mainly due to increase of the net flow-in from operating
Monetary capital 440,841,813.69 316,668,565.09 39.21%
activities
Mainly due to growth of the income from the business of
Notes receivable 31,643,491.93 10,596,431.31 198.62%
precision technology.
Mainly due to growth of the income from the watch
Accounts receivable 517,102,018.23 397,471,106.98 30.10% business and income from the business of precision
technology.
Mainly due to decrease of the excess VAT credit over the
Other current assets 42,265,897.66 68,858,096.74 -38.62%
beginning of the year.
Mainly due to increase of the advance payment for
Other non-current assets 20,641,356.90 7,373,248.48 179.95%
refurbishment and equipment over the year beginning.
Mainly due to the influence from the reclassification in
Advance receipts 7,603,874.94 23,433,463.57 -67.55%
compliance with the new income code.
Mainly due to the influence from the reclassification in
Contract liabilities 17,765,957.61 - -
compliance with the new income code.
Mainly due to increase of the VAT and business income
Tax payable 88,754,288.51 24,064,803.00 268.81%
tax payable over the year beginning.
Mainly due to increase of the shopping mall expenses,
Other payables 161,123,219.49 119,616,721.63 34.70%
rent, etc. arising from the revenue growth.
Mainly due to repurchase of the B-shares written-off in
Treasury stock 34,143,512.92 71,267,118.78 -52.09%
the current year.
(II) Items of the Statement of Profit in the Reporting Period
Amount incurred in
Amount incurred in Variation
Items the same period of Cause of the movement
the reporting period proportion
the previous year
Mainly due to the growth of income from the watch
Operating revenue 1,362,598,720.97 954,666,662.24 42.73%
business during the reporting period.
Mainly due to the increase of the operating costs arising
Operating costs 843,233,284.52 564,943,912.45 49.26% from the growth of income from the watch business
during the reporting period.
Mainly due to the increase of the governmental subsidies
Other income 9,981,129.79 321,181.31 3007.63%
received during the reporting period.
Loss from impairment of Mainly due to further enhancement of control over the
-2,704,695.51 -5,221,223.17 48.20%
credit accounts receivable during the reporting period.
Income from disposal of Mainly due to relatively big amount from disposal of
-175,929.69 -671,226.52 73.79%
assets equipment in the same period of the previous year.
Mainly due to the influence from the donation of anti-
Non-operating expenses 289,010.70 159,270.28 81.46%
epidemic supplies during the reporting period.
Total profit 170,897,842.43 72,234,639.73 136.59% Mainly due to growth of revenue in the reporting period.
FIYTA Precision Technology Co., Ltd. 2020 Fourth Quarter Report, Summary
Mainly due to growth of the total profit in the reporting
Income tax expense 33,842,369.19 16,999,335.26 99.08%
period.
(III) Items of the Statement of Profit from the Year Beginning to the End of the Reporting Period
Amount incurred in
Amount incurred in Variation
Items the same period of Cause of the movement
the reporting period proportion
the previous year
Mainly due to the impact from the increase of inventories
Taxes and surcharges 14,676,717.58 22,031,072.60 -33.38%
and procurements.
Mainly due to the increase of the governmental subsidies
Other income 20,135,145.46 13,366,923.67 50.63%
received during the reporting period.
Mainly due to increase of the profit of Shanghai Watch
Return on investment 2,160,911.92 1,531,310.06 41.12% Industry, a shareholding enterprise in the reporting
period.
Loss from impairment of Mainly due to further enhancement of control over the
-5,172,056.86 -8,302,992.06 37.71%
credit accounts receivable during the reporting period.
Income from disposal of Mainly due to big amount from disposal of equipment in
-376,069.86 -883,236.65 57.42%
assets the same period of the previous year.
(IV) Items of the Cash Flow Statement from the Year Beginning to the End of the Reporting Period
Amount incurred in
Amount incurred in Variation
Items the same period of Cause of the movement
the reporting period proportion
the previous year
Mainly due to decrease of the rebated export tax and
Rebated tax received 1,592,055.84 5,027,853.96 -68.34% duties arising from the drop of the overseas business
income in the current year affected by COVID-19
Mainly due to the impact from the difference in the input
Various taxes and duties paid 121,220,554.66 187,144,694.13 -35.23%
VAT and output VAT in the current year.
Net cash recovered from
disposal of the fixed assets, Mainly due to decrease in disposal of fixed assets in the
84,522.81 203,980.63 -58.56%
intangible assets and other current year
long-term assets
Cash received from Mainly due to the equity incentive implemented in the same
- 18,585,600.00 100.00%
absorption of investment period of the previous year.
Influence of the change of the
exchange rate upon cash and -598,916.46 335,308.39 -278.62% Mainly due to influence on the change of exchange rate.
cash equivalent
During the third quarter, benefited from the resumption of overseas consumption of famous brand watches and recovery of
the market of the own proprietary brand as well as continuous carrying forward of quality improvement & efficiency
improvement and transformation & upgrading, the Company achieved a historical high in operating performance in single
quarter in the third quarter; the year-on-year growth rate of revenue was 42.73% and the year-on-year growth rate of total
profit was 136.59%. During the reporting period, the Company continuously kept "war footing", seized the opportunity,
controlled the cost, promoted transformation, the Company realized a positive growth on year-on-year basis in its own
proprietary brand business in a single quarter, the total profit boosted enormously, continuously carried forward channel
upgrading in the retail of world watch retails and the superiority of the channels was further consolidated, and kept high -
speed growth in revenue and total profit; achieved a further breakthrough in digital transformation, provided effective
support for breakthrough in business performance as the customer-centered digital operation system became further
matured and; also made a new breakthrough in exploration of new retail models, such as “live video streaming by web
celebrity”, and made a highest record in a single live broadcasting for sale of watches on the live streaming platform jointl y
hosted by Wei Ya and Gao Yuanyuan; in precision technology business, the Company was persistently carr ying forward
FIYTA Precision Technology Co., Ltd. 2020 Fourth Quarter Report, Summary
customer deep ploughing and development of the new market field with the revenue growth rate exceeding 50% and
smoothly boosted the technology reserve for the smart watch business and product development.
During the reporting period, the Company was rated as one of the "Top Ten Enterprises of the Watch Sector of China’s
Light Industry", ranking the first for many consecutive years. Our Chairman was awarded the honorary title of "Tribute to
the 40th Anniversary of the Establishment of the Shenzhen Special Economic Zone and Saluting 40 Persons of Brands "
on behalf of the Company. At the 40th Anniversary Celebration of the Establishment of Shenzhen Special Economic Zone
dated October 14, Sun Lei, the chief designer of the Company, was awarded the honorary title of "Innovative and
Pioneering Figure and Advanced Model Figure" as the only representative of the watch industry.
Looking forward to the future, the Company is optimistic about the huge potential of the domestic consumption market
under the new development pattern of the “Dual Circulation”, shall still pay close attention to the potential impact of the
global epidemic situation and the changes in the competition pattern in the Chinese market, and continue to strengthen
the advantages of our core competition based on “Brand Power, Product Power and Channel Power”; insist on science
and technology leading and innovation driving, speed up digital transformation, increase investment in key fields and
strength creation of the hard core of precision technology and carry forward transformation upgrading and new
breakthrough.
II. Progress of Significant Events and their Impacts and Analysis and Explanation of Solutions
1. Repurchase of Partial Domestically Listed Foreign Shares (B-shares)
The Company held the 19th Session of the Ninth Board of Directors on July 6, 2020 and 2020 2nd Extraordinary General
Meeting on July 23, 2020. The two meetings examined and approved the "Proposal for Repurchase of Partial
Domestically Listed Foreign Shares (B-shares)”, and published the repurchase report and a series of announcements on
the progress according to relevant regulations subsequently. For the detail, please refer to the relevant announcements
disclosed by the Company in www.cninfo.com.cn., the Securities Times and Hong Kong Commercial Daily.
2. Capital Increment in Wholly-owned Subsidiaries
The Company held the 20th session of the Ninth Board of Directors on July 28, 2020. The meeting reviewed and approved
the Proposal on Increasing Capital in Shenzhen FIYTA Precision Technology Ltd., One of the Company’s Wholly-owned
Subsidiaries, the Proposal on Increasing Capital in Shenzhen FIYTA Technology Development Ltd., One of the
Company’s Wholly-owned Subsidiaries, and the Proposal on Increasing Capital in Shenzhen HARMONY E-Commerce
Ltd., One of the Company’s Wholly-owned Subsidiaries. The capital increment in the said three wholly-owned subsidiaries
amounted to CNY 90 million, CNY 40 million and CNY 9.50 million respectively. For the detail, please refer to the relevant
announcements disclosed by the Company in www.cninfo.com.cn., the Securities Times and Hong Kong Commercial
Daily.
Inquiry index of the provisional reports disclosed
Summary of significant events Date of disclosure
in the website
Announcement on the Resolution of the 19th
Session of the Ninth Board of Directors, 2020- http://www.cninfo.com.cn/
036
July 7, 2020
Proposal for Repurchase of Partial
Domestically Listed Foreign Shares (B- http://www.cninfo.com.cn/
shares), 2020-038
Announcement on the Resolution of 2020 2nd
http://www.cninfo.com.cn/
Extraordinary General Meeting, 2020-044
July 24, 2020
Report on Repurchase of Partial Domestically
http://www.cninfo.com.cn/
Listed Foreign Shares (B-shares), 2020-045
Announcement on the Resolution of the 20th
Session of the Ninth Board of Directors, 2020- http://www.cninfo.com.cn/
049
Announcement on Capital Increment in
Shenzhen FIYTA Precision Technology Ltd.,
http://www.cninfo.com.cn/
One of the Company’s Wholly-owned
Subsidiaries, 2020-051
July 30, 2020
Announcement on Capital Increment in
Shenzhen FIYTA Technology Development
http://www.cninfo.com.cn/
Ltd., One of the Company’s Wholly-owned
Subsidiaries, 2020-052
Announcement on Capital Increment in http://www.cninfo.com.cn/
Shenzhen HARMONY E-Commerce Ltd., One
of the Company’s Wholly-owned Subsidiaries,
FIYTA Precision Technology Co., Ltd. 2020 Fourth Quarter Report, Summary
2020-053
Progress of Implementation of the Stock Repurchase
The Company held the 19th Session of the Ninth Board of Directors on July 6, 2020 and 2020 2nd Extraordinary General
Meeting on July 23, 2020. The two meetings examined and approved the "Proposal for Repurchase of Partial
Domestically Listed Foreign Shares (B-shares)”, and published the repurchase report and a series of announcements on
the progress according to relevant regulations subsequently. For the detail, please refer to the relevant announcements
disclosed by the Company in www.cninfo.com.cn., the Securities Times and Hong Kong Commercial Daily.
By the end of the reporting period, the Company accumulatively repurchased 3,414,697 shares in the Company by means
of centralized bidding through the special securities account through repurchase, taking 0.80% of the Company's total
capital stock; the highest transaction price of the shares repurchased is HK$6.50/share and the lowest transaction price is
HK$5.93/share and the total amount paid was HK$21,410,437.38 (with the transaction costs, such as the stamp duty,
commission, etc. exclusive). The repurchase of the shares complied with the relevant law and regulations as well as the
vested repurchase plan of the Company.
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
1. Investment in securities
Inapplicable
2. Investment in derivatives
Inapplicable
V. Progress of the projects invested with the raised capital
Inapplicable
VI. Prediction of the Operating Performance of 2020
Inapplicable
VII. Material Contracts in Day-to-Day Operations
Inapplicable
VIII. Entrusted Financing
Inapplicable
IX. Outward guarantee against regulations
Inapplicable
FIYTA Precision Technology Co., Ltd. 2020 Fourth Quarter Report, Summary
X. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and its Related Parties
Inapplicable
XI. Registration Form of Activities of Reception for Investigation and Survey, Communications, Interviews, etc. in
the Reporting Period
Main Content of
Types of
Time of Place of Way of Discussion and Index of Basic Information on the
Visitors Visitors Received
Reception Reception Reception Materials Investigation and Survey
Received
Provided
Changjiang Securities
Company Limited,
Hunan Yuancheng
Investment
Management Co.,
Ltd., Shenzhen
Zhongna Bojin
Investment
Management Co.,
Ltd., CITIC Securities
Company Limited,
Shenzhen The Company
Hengyingfuda Asset communicated
Management Limited, with investors on
Zhuhai Hengqin the businesses of
Changle Hui Capital watch brands, http://irm.cninfo.com.cn/ircs/company/co
August 19,
Company Field survey Institution Management Co., watch retail mpanyDetail?stockcode=000026&orgId=
2020
Ltd., Infore Capital service, precision gssz0000026
Management Co., technology, new
Ltd., Zhongrong Fund business
Management Co., development of
Ltd., Shenzhen smart watch, etc.
Hillstone Fund
Management Co.,
Ltd., Truvalue Asset
Management Co.,
Ltd., Jinxin Fund
Management Co.,Ltd.,
Shenzhen Minsen
Investment Co., Ltd.
and Zhongrong Fund
Management
Company.
China Merchants
Fund Management
Co.,Ltd., Ping An
Fund Management
Company Limited,
Shanghai Chongshan
Investment Co., Ltd.,
Shenzhen Upright
Asset Management
Co., Ltd., Shenzhen The Company
KWT Investment communicated
Company, Shanghai with investors on
Huahong Asset the businesses of
Management Co.,Ltd., watch brands, http://irm.cninfo.com.cn/ircs/company/co
August 21, Shenzhen Qianhai
Company Field survey Institution watch retail mpanyDetail?stockcode=000026&orgId=
2020 Yunxi Fund
service, precision gssz0000026
Management Co. Ltd., technology, new
Shenzhen Haifuling business
Capital Management development of
Co., Ltd., Shanghai smart watch, etc.
Tai Yang Asset
Management Ltd.,
Penghua Fund
Management Co.,
Ltd., Bosera Asset
Management Co.,Ltd.,
Shenzhen Qianhai
Shengbeile
Investment
Management Co.,Ltd.
and Tonsin Financial
FIYTA Precision Technology Co., Ltd. 2020 Fourth Quarter Report, Summary
International Holdings
Limited
The Company
communicated
Shenzhen Upright
with investors on
Asset Management
the businesses of
Co., Ltd., Shanghai
watch brands, http://irm.cninfo.com.cn/ircs/company/co
August 25, Huahong Asset
Company Field survey Institution watch retail mpanyDetail?stockcode=000026&orgId=
2020 Management Co.,
service, precision gssz0000026
Ltd., China Southern
technology, new
Asset Management
business
Co., Ltd.
development of
smart watch, etc.
Board of Directors of
FIYTA Precision Technology Co., Ltd.
October 22, 2020