FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report October, 2020 1 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text 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. 2 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text 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 129,723,577.01 133.96% 198,393,054.46 17.34% non-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 Note to the end of the reporting 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 to 20,135,145.46 the Company’s business and conform with the national standard amount 3 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text or quantity) Accounts receivable separately tested for impairment and reversal of the 134,236.87 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 -- 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 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 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 38.07% 162,977,327 0 Holding Limited China Construction Bank Corporation - Penghua Value Domestic Advantage Hybrid non-state-owned 1.25% 5,331,735 0 Securities legal person Investment Fund (LOF) JPMORGAN CHASE BANK, Overseas legal 1.07% 4,598,412 0 NATIONAL person ASSOCIATION 4 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text 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 Media Flexible non-state-owned 0.58% 2,470,000 0 Configuration legal 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 Plan A, Issue Domestic S1601 - 01 - Hua non-state-owned 0.47% 2,000,500 0 An Fund - Jiangnan legal person Rural Commercial Bank 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, NATIONAL CNY ordinary 4,598,412 4,598,412 ASSOCIATION shares CNY ordinary # Huang Xuhua 3,998,594 3,998,594 shares CNY ordinary Song Jianbo 2,790,000 2,790,000 shares 5 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text 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 - Hua An CNY ordinary 2,000,500 2,000,500 Fund - Jiangnan Rural Commercial shares 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 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 6 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text 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 Notes receivable 31,643,491.93 10,596,431.31 198.62% of 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 Other current assets 42,265,897.66 68,858,096.74 -38.62% the 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 Operating costs 843,233,284.52 564,943,912.45 49.26% arising from the growth of income from the watch business during the reporting period. Mainly due to the increase of the governmental Other income 9,981,129.79 321,181.31 3007.63% subsidies received during the reporting period. Loss from impairment of credit -2,704,695.51 -5,221,223.17 48.20% Mainly due to further enhancement of control over the 7 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text 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 Non-operating expenses 289,010.70 159,270.28 81.46% anti-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. 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 Taxes and surcharges 14,676,717.58 22,031,072.60 -33.38% inventories and procurements. Mainly due to the increase of the governmental Other income 20,135,145.46 13,366,923.67 50.63% subsidies 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. Mainly due to further enhancement of control over the Loss from impairment of credit -5,172,056.86 -8,302,992.06 37.71% 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 84,522.81 203,980.63 -58.56% intangible assets and other the current year long-term assets Cash received from Mainly due to the equity incentive implemented in the - 18,585,600.00 100.00% absorption of investment same period of the previous year. Influence of the change of the Mainly due to influence on the change of exchange exchange rate upon cash and -598,916.46 335,308.39 -278.62% rate. cash equivalent During the third quarter, benefited from the resumption of overseas consumption of famous brand watches and recovery 8 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text 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 jointly hosted by Wei Ya and Gao Yuanyuan; in precision technology business, the Company was persistently carrying forward 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 9 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text 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 Summary of significant events Date of disclosure disclosed in the website Announcement on the Resolution of the 19th Session of the Ninth Board of Directors, http://www.cninfo.com.cn/ 2020-036 July 7, 2020 Proposal for Repurchase of Partial Domestically Listed Foreign Shares (B-shares), http://www.cninfo.com.cn/ 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, http://www.cninfo.com.cn/ 2020-049 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 Announcement on Capital Increment in July 30, 2020 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 Shenzhen HARMONY E-Commerce Ltd., One http://www.cninfo.com.cn/ of the Company’s Wholly-owned Subsidiaries, 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 10 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text 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 11 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text 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 Index of Basic Main Content of Time of Place of Way of Types of Visitors Information on the Visitors Received Discussion and Reception Reception Reception Received Investigation and Materials Provided Survey Changjiang Securities Company Limited, Hunan Yuancheng Investment Management Co., Ltd., Shenzhen Zhongna Bojin Investment Management Co., Ltd., CITIC Securities Company Limited, The Company Shenzhen Hengyingfuda communicated with Asset Management Limited, investors on the Zhuhai Hengqin Changle http://irm.cninfo.com.cn businesses of watch Hui Capital Management /ircs/company/compan August 19, brands, watch retail Company Field survey Institution Co., Ltd., Infore Capital yDetail?stockcode=000 2020 service, precision Management Co., Ltd., 026&orgId=gssz00000 technology, new Zhongrong Fund 26 business Management Co., Ltd., development of Shenzhen Hillstone Fund smart watch, etc. 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 KWT Investment Company, The Company Shanghai Huahong Asset communicated with Management Co.,Ltd., investors on the http://irm.cninfo.com.cn Shenzhen Qianhai Yunxi businesses of watch /ircs/company/compan August 21, Fund Management Co. Ltd., brands, watch retail Company Field survey Institution yDetail?stockcode=000 2020 Shenzhen Haifuling Capital service, precision 026&orgId=gssz00000 Management Co., Ltd., technology, new 26 Shanghai Tai Yang Asset business Management Ltd., Penghua development of Fund Management Co., smart watch, etc. Ltd., Bosera Asset Management Co.,Ltd., Shenzhen Qianhai Shengbeile Investment Management Co.,Ltd. and Tonsin Financial International Holdings Limited The Company communicated with Shenzhen Upright Asset investors on the http://irm.cninfo.com.cn Management Co., Ltd., businesses of watch /ircs/company/compan August 25, Shanghai Huahong Asset brands, watch retail Company Field survey Institution yDetail?stockcode=000 2020 Management Co., Ltd., service, precision 026&orgId=gssz00000 China Southern Asset technology, new 26 Management Co., Ltd. business development of smart watch, etc. 12 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text Section 4. Financial Statements I. Financial Statements 1. Consolidated Balance Sheet Prepared by FIYTA Precision Technology Co., Ltd. September 30, 2020 In CNY Items September 30, 2020 December 31, 2019 Current assets: Monetary capital 440,841,813.69 316,668,565.09 Settlement reserve Inter-bank lending Transactional financial assets Derivative financial assets Notes receivable 31,643,491.93 10,596,431.31 Accounts receivable 517,102,018.23 397,471,106.98 Financing with accounts receivable Advance payment 12,543,010.78 10,847,962.28 Receivable premium Reinsurance accounts receivable Reserve for reinsurance contract receivable Other receivables 59,088,262.37 47,239,844.58 Including: Interest receivable Dividends receivable Redemptory monetary capital for sale Inventories 1,851,085,988.74 1,808,820,089.92 Contract assets Held-for-sale assets Non-current assets due within a year Other current assets 42,265,897.66 68,858,096.74 Total current assets 2,954,570,483.40 2,660,502,096.90 Non-current assets: Loan issuing and advance in cash Equity investment Other equity investment Long term accounts receivable Long-term equity investment 48,584,749.77 46,423,837.85 Investment in other equity instruments 85,000.00 85,000.00 Other non-current financial assets Investment-oriented real estate 396,071,321.43 407,503,307.24 Fixed assets 355,715,871.10 363,997,098.94 Construction-in-process Productive biological asset Oil and gas assets Use right assets Intangible assets 37,576,653.88 38,711,821.26 Development expenses 13 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text Goodwill Long-term expenses to be apportioned 118,970,575.96 152,587,491.33 Deferred income tax asset 95,931,960.70 83,739,383.37 Other non-current assets 20,641,356.90 7,373,248.48 Other non-current assets 1,073,577,489.74 1,100,421,188.47 Total assets 4,028,147,973.14 3,760,923,285.37 Current liabilities: Short term borrowings 716,018,456.37 567,908,833.21 Borrowings from central bank Loans from other banks Transactional financial liabilities Derivative financial liabilities Notes payable 2,523,392.75 Accounts payable 196,109,158.10 279,772,787.37 Advance receipts 7,603,874.94 23,433,463.57 Contract liabilities 17,765,957.61 Income from sale of the repurchased financial assets Deposits taking and interbank placement Acting trading securities Acting underwriting securities Payroll payable 82,407,386.00 82,602,845.67 Tax payable 88,754,288.51 24,064,803.00 Other payables 161,123,219.49 119,616,721.63 Including: interest payable Dividends payable 1,639,513.77 848,233.27 Service charge and commission payable Payable reinsurance Held-for-sale liabilities Non-current liabilities due within a year 367,555.00 360,140.00 Other current liabilities Total current liabilities 1,272,673,288.77 1,097,759,594.45 Non-current liabilities: Reserve for insurance contract Long-term borrowings 4,134,993.75 4,321,680.00 Bonds payable Including: preferred shares Perpetual bond Lease liabilities Long-term accounts payable Long-term payroll payable Estimated liabilities Deferred income 3,046,090.60 3,046,090.60 Deferred income tax liability 1,192,721.71 1,256,242.49 Other non-current liabilities Total non-current liabilities 8,373,806.06 8,624,013.09 Total liabilities 1,281,047,094.83 1,106,383,607.54 Owner’s equity: Capital stock 428,124,881.00 442,968,881.00 Other equity instruments Including: preferred shares Perpetual bond 14 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text Capital Reserve 1,020,369,728.84 1,081,230,215.32 Less: shares in stock 34,143,512.92 71,267,118.78 Other comprehensive income 1,042,046.91 -940,209.09 Special reserve Surplus reserve 235,701,180.14 235,701,180.14 Reserve against general risks Retained earnings 1,095,993,726.33 966,840,818.40 Total owners’ equity attributable to the 2,747,088,050.30 2,654,533,766.99 parent company Minority shareholders’ equity 12,828.01 5,910.84 Total owner’s equity 2,747,100,878.31 2,654,539,677.83 Total liabilities and owners’ equity 4,028,147,973.14 3,760,923,285.37 Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 2. Balance Sheet, Parent Company In CNY Items September 30, 2020 December 31, 2019 Current assets: Monetary capital 382,704,156.08 270,673,346.02 Transactional financial assets Derivative financial assets Notes receivable Accounts receivable 4,601,359.38 2,848,025.39 Financing with accounts receivable Advance payment Other receivables 554,793,665.23 783,647,732.22 Including: Interest receivable Dividends receivable Inventories Contract assets Held-for-sale assets Non-current assets due within a year Other current assets 14,867,043.32 12,380,243.67 Total current assets 956,966,224.01 1,069,549,347.30 Non-current assets: Equity investment Other equity investment 15 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text Long term accounts receivable Long-term equity investment 1,525,691,030.77 1,380,895,239.27 Investment in other equity instruments 85,000.00 85,000.00 Other non-current financial assets Investment-oriented real estate 320,595,550.70 329,970,083.18 Fixed assets 233,343,607.87 238,594,698.50 Construction-in-process Productive biological asset Oil and gas assets Use right assets Intangible assets 27,776,395.34 30,925,974.54 Development expenses Goodwill Long-term expenses to be apportioned 11,351,518.54 12,106,759.98 Deferred income tax asset 1,376,549.26 1,125,840.75 Other non-current assets 978,090.78 4,707,236.86 Other non-current assets 2,121,197,743.26 1,998,410,833.08 Total assets 3,078,163,967.27 3,067,960,180.38 Current liabilities: Short term borrowings 590,589,473.11 540,650,622.50 Transactional financial liabilities Derivative financial liabilities Notes payable Accounts payable 1,472,585.49 12,952,934.93 Advance receipts 7,603,874.94 3,434,407.04 Contract liabilities Payroll payable 16,736,608.17 19,019,554.57 Tax payable 2,918,105.69 1,713,130.68 Other payables 172,983,998.72 82,631,590.46 Including: interest payable Dividends payable 1,639,513.77 848,233.27 Held-for-sale liabilities Non-current liabilities due within a year Other current liabilities 16 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text Total current liabilities 792,304,646.12 660,402,240.18 Non-current liabilities: Long-term borrowings Bonds payable Including: preferred shares Perpetual bond Lease liabilities Long-term accounts payable Long-term payroll payable Estimated liabilities Deferred income 3,046,090.60 3,046,090.60 Deferred income tax liability Other non-current liabilities Total non-current liabilities 3,046,090.60 3,046,090.60 Total liabilities 795,350,736.72 663,448,330.78 Owner’s equity: Capital stock 428,124,881.00 442,968,881.00 Other equity instruments Including: preferred shares Perpetual bond Capital Reserve 1,026,025,269.94 1,086,885,756.42 Less: shares in stock 34,143,512.92 71,267,118.78 Other comprehensive income Special reserve Surplus reserve 235,701,180.14 235,701,180.14 Retained earnings 627,105,412.39 710,223,150.82 Total owner’s equity 2,282,813,230.55 2,404,511,849.60 Total liabilities and owners’ equity 3,078,163,967.27 3,067,960,180.38 Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 3. Consolidated Profit Statement In CNY 17 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text Items Amount incurred in the reporting period Amount incurred in the previous period I. Turnover 1,362,598,720.97 954,666,662.24 Including: operating income 1,362,598,720.97 954,666,662.24 Interest income Earned insurance premium Service charge and commission income II. Total operating costs 1,198,816,461.60 876,598,070.04 Including: Operating costs 843,233,284.52 564,943,912.45 Interest payment Service charge and commission payment Surrender value Compensation expenses, net Appropriation of deposit for duty, net Payment of policy dividend Reinsurance expenses Taxes and surcharges 7,405,733.89 6,936,197.27 Sales costs 260,163,151.98 223,791,184.02 Administrative expenses 64,037,821.40 58,166,098.53 R & D expenditures 14,061,457.65 14,631,757.35 Financial expenses 9,915,012.16 8,128,920.42 Where: Interest cost 5,972,320.59 6,261,557.28 Interest income 988,152.65 646,724.70 Plus: Other income 9,981,129.79 321,181.31 Investment income (loss is stated with “-”) Including: return on investment in associates and joint ventures Income from the derecognition of the financial assets measured at amortised cost Exchange income (loss stated with “-”) Net exposure hedge income (loss 18 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text stated with “-”) Income from change of fair value (loss is stated with “-”) Loss from impairment of credit (loss -2,704,695.51 -5,221,223.17 is stated with “-”) Loss from impairment of assets (loss -298,243.29 is stated with “-”) Income from disposal of assets (loss -175,929.69 -671,226.52 is stated with “-”) III. Operating Profit (loss is stated with “-”) 170,882,763.96 72,199,080.53 Plus: Non-operating income 304,089.17 194,829.48 Less: non-operating expenditures 289,010.70 159,270.28 IV. Total profit (total loss is stated with “-”) 170,897,842.43 72,234,639.73 Less: Income tax expense 33,842,369.19 16,999,335.26 V. Net Profit (net loss is stated with “-”) 137,055,473.24 55,235,304.47 (I) Classification based on operation sustainability 1. Net Profit from sustainable operation 137,055,473.24 55,235,304.47 (net loss is stated with “-”) 2. Net Profit from termination of operation (net loss is stated with “-”) (II) Classification by ownership (II) Classification by ownership 137,048,377.83 55,235,304.47 2. Minority shareholders’ gain/loss 7,095.41 VI. Net of other comprehensive income after -2,340,800.66 2,338,089.70 tax Net of other comprehensive income after tax attributable to the parent company’s -2,347,621.58 2,337,932.27 owner (I) Other comprehensive income which cannot be re-classified into gain and loss 1. Movement of the net liabilities and net assets re-measured for setting the beneficial plan 2. Other comprehensive income which cannot be converted into gain and loss based on the equity method 3. Movement of the fair value of 19 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text the investment in other equity instruments 4. Movement of the fair value of the Company’s own credit risk 5. Others (II) Other comprehensive income which -2,347,621.58 2,337,932.27 shall be re-classified into gain and loss 1. Other comprehensive income which can be converted into gain and loss based on the equity method 2. Movement of the fair value of the investment in other debt instruments 3. Amount of the reclassified financial assets counted to the other comprehensive income 4. Provision for impairment of the credit of the other debt investment 5. Reserve for cash flow hedge 6. Conversion difference in foreign -2,347,621.58 2,337,932.27 currency statements 7. Others Net amount of other comprehensive income after tax attributable to minority 6,820.92 157.43 shareholders VII. Total comprehensive income 134,714,672.58 57,573,394.17 Total comprehensive income attributable 134,700,756.25 57,573,236.74 to the parent company’s owner Total comprehensive income attributable 13,916.33 157.43 to minority shareholders VIII. Earnings per share: (I) Basic earnings per share 0.3165 0.1251 (II) Diluted earnings per share 0.3165 0.1251 Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 4. Profit Statement, Parent Company In CNY Items Amount incurred in the reporting period Amount incurred in the previous period 20 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text I. Revenue 34,456,446.13 33,546,911.62 Less: Operating cost 10,273,343.94 5,542,524.31 Taxes and surcharges 1,034,115.18 1,069,002.12 Sales costs 446,985.73 309,531.74 Administrative expenses 20,777,543.95 19,357,558.70 R & D expenditures 5,132,505.68 3,775,597.88 Financial expenses 723,880.29 2,197,814.39 Where: Interest cost 1,663,358.72 2,484,924.80 Interest income 879,329.31 581,627.16 Plus: Other income 5,031,830.00 17,728.76 Investment income (loss is stated with “-”) Including: return on investment in associates and joint ventures Income from the derecognition of the financial assets measured at amortised cost Net exposure hedge income (loss stated with “-”) Income from change of fair value (loss is stated with “-”) Loss from impairment of credit (loss is stated with “-”) Loss from impairment of assets (loss is stated with “-”) Income from disposal of assets -1,341.79 -644,966.93 (loss is stated with “-”) II. Operating Profit (loss is stated with “-”) 1,098,559.57 667,644.31 Plus: Non-operating income 152,070.00 22,200.00 Less: non-operating expenditures 15,864.83 10,174.24 III. Total profit (total loss is stated with “-”) 1,234,764.74 679,670.07 Less: Income tax expense 364,641.77 IV. Net Profit (net loss is stated with “-”) 1,234,764.74 315,028.30 (I) Net Profit from sustainable operation 1,234,764.74 315,028.30 (net loss is stated with “-”) (II) Net Profit from termination of operation (net loss is stated with “-”) 21 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text V. Net of other comprehensive income after tax (I) Other comprehensive income which cannot be re-classified into gain and loss 1. Movement of the net liabilities and net assets re-measured for setting the beneficial plan 2. Other comprehensive income which cannot be converted into gain and loss based on the equity method 3. Movement of the fair value of the investment in other equity instruments 4. Movement of the fair value of the Company’s own credit risk 5. Others (II) Other comprehensive income which shall be re-classified into gain and loss 1. Other comprehensive income which can be converted into gain and loss based on the equity method 2. Movement of the fair value of the investment in other debt instruments 3. Amount of the reclassified financial assets counted to the other comprehensive income 4. Provision for impairment of the credit of the other debt investment 5. Reserve for cash flow hedge 6. Conversion difference in foreign currency statements 7. Others VI. Total comprehensive income 1,234,764.74 315,028.30 VII. Earnings per share: (I) Basic earnings per share 0.0028 0.0007 (II) Diluted earnings per share 0.0028 0.0007 22 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 5. Consolidated Profit Statement from the Year Beginning to the End of the Reporting Period In CNY Items Amount incurred in the reporting period Amount incurred in the previous period I. Turnover 2,944,433,436.00 2,739,702,682.47 Including: operating income 2,944,433,436.00 2,739,702,682.47 Interest income Earned insurance premium Service charge and commission income II. Total operating costs 2,699,924,997.52 2,511,091,261.78 Including: Operating costs 1,820,668,961.39 1,616,447,987.67 Interest payment Service charge and commission payment Surrender value Compensation expenses, net Appropriation of deposit for duty, net Payment of policy dividend Reinsurance expenses Taxes and surcharges 14,676,717.58 22,031,072.60 Sales costs 641,091,464.49 639,567,212.97 Administrative expenses 162,278,170.13 174,518,933.95 R & D expenditures 34,765,728.41 34,158,168.28 Financial expenses 26,443,955.52 24,367,886.31 Where: Interest cost 19,457,991.26 18,285,401.21 Interest income 3,470,874.47 1,555,575.62 Plus: Other income 20,135,145.46 13,366,923.67 Investment income (loss is stated 2,160,911.92 1,531,310.06 with “-”) Including: return on investment in 2,160,911.92 1,531,310.06 associates and joint ventures 23 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text Income from the derecognition of the financial assets measured at amortised cost Exchange income (loss stated with “-”) Net exposure hedge income (loss stated with “-”) Income from change of fair value (loss is stated with “-”) Loss from impairment of credit (loss -5,172,056.86 -8,302,992.06 is stated with “-”) Loss from impairment of assets (loss 2,216,497.57 is stated with “-”) Income from disposal of assets (loss -376,069.86 -883,236.65 is stated with “-”) III. Operating Profit (loss is stated with “-”) 261,256,369.14 236,539,923.28 Plus: Non-operating income 1,695,948.59 489,141.18 Less: non-operating expenditures 407,657.11 683,776.26 IV. Total profit (total loss is stated with “-”) 262,544,660.62 236,345,288.20 Less: Income tax expense 47,750,281.08 57,614,522.82 V. Net Profit (net loss is stated with “-”) 214,794,379.54 178,730,765.38 (I) Classification based on operation sustainability 1. Net Profit from sustainable operation 214,794,379.54 178,730,765.38 (net loss is stated with “-”) 2. Net Profit from termination of operation (net loss is stated with “-”) (II) Classification by ownership (II) Classification by ownership 214,787,284.13 178,730,765.38 2. Minority shareholders’ gain/loss 7,095.41 VI. Net of other comprehensive income after 1,989,173.17 4,087,510.57 tax Net of other comprehensive income after tax attributable to the parent company’s 1,982,256.00 4,087,339.47 owner (I) Other comprehensive income which cannot be re-classified into gain and loss 1. Movement of the net liabilities 24 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text and net assets re-measured for setting the beneficial plan 2. Other comprehensive income which cannot be converted into gain and loss based on the equity method 3. Movement of the fair value of the investment in other equity instruments 4. Movement of the fair value of the Company’s own credit risk 5. Others (II) Other comprehensive income which 1,982,256.00 4,087,339.47 shall be re-classified into gain and loss 1. Other comprehensive income which can be converted into gain and loss based on the equity method 2. Movement of the fair value of the investment in other debt instruments 3. Amount of the reclassified financial assets counted to the other comprehensive income 4. Provision for impairment of the credit of the other debt investment 5. Reserve for cash flow hedge 6. Conversion difference in foreign 1,982,256.00 4,087,339.47 currency statements 7. Others Net amount of other comprehensive income after tax attributable to minority 6,917.17 171.10 shareholders VII. Total comprehensive income 216,783,552.71 182,818,275.95 Total comprehensive income attributable 216,769,540.13 182,818,104.85 to the parent company’s owner Total comprehensive income attributable 14,012.58 171.10 to minority shareholders VIII. Earnings per share: (I) Basic earnings per share 0.4940 0.4039 (II) Diluted earnings per share 0.4940 0.4039 Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo 25 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text Person in charge of the Accounting Department: Tian Hui 6. Profit Statement from the Year Beginning to the End of the Reporting Period, Parent Company In CNY Items Amount incurred in the reporting period Amount incurred in the previous period I. Revenue 91,769,664.54 97,671,851.57 Less: Operating cost 27,899,734.18 17,350,450.21 Taxes and surcharges 2,650,223.33 3,326,021.04 Sales costs 1,044,603.75 891,567.77 Administrative expenses 52,184,214.92 59,140,707.86 R & D expenditures 13,121,598.22 12,922,187.52 Financial expenses 4,182,255.68 5,445,503.71 Where: Interest cost 7,027,728.92 6,492,451.34 Interest income 3,243,236.75 1,357,673.60 Plus: Other income 9,366,586.32 7,761,424.65 Investment income (loss is stated 2,160,911.92 1,531,310.06 with “-”) Including: return on investment in 2,160,911.92 1,531,310.06 associates and joint ventures Income from the derecognition of the financial assets measured at amortised cost Net exposure hedge income (loss stated with “-”) Income from change of fair value (loss is stated with “-”) Loss from impairment of credit -100,902.52 -64,803.91 (loss is stated with “-”) Loss from impairment of assets (loss is stated with “-”) Income from disposal of assets -16,983.37 -647,041.13 (loss is stated with “-”) II. Operating Profit (loss is stated with “-”) 2,096,646.81 7,176,303.13 Plus: Non-operating income 185,147.28 40,200.00 Less: non-operating expenditures 15,864.83 210,174.24 III. Total profit (total loss is stated with “-”) 2,265,929.26 7,006,328.89 26 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text Less: Income tax expense -250,708.51 1,538,814.16 IV. Net Profit (net loss is stated with “-”) 2,516,637.77 5,467,514.73 (I) Net Profit from sustainable operation 2,516,637.77 5,467,514.73 (net loss is stated with “-”) (II) Net Profit from termination of operation (net loss is stated with “-”) V. Net of other comprehensive income after tax (I) Other comprehensive income which cannot be re-classified into gain and loss 1. Movement of the net liabilities and net assets re-measured for setting the beneficial plan 2. Other comprehensive income which cannot be converted into gain and loss based on the equity method 3. Movement of the fair value of the investment in other equity instruments 4. Movement of the fair value of the Company’s own credit risk 5. Others (II) Other comprehensive income which shall be re-classified into gain and loss 1. Other comprehensive income which can be converted into gain and loss based on the equity method 2. Movement of the fair value of the investment in other debt instruments 3. Amount of the reclassified financial assets counted to the other comprehensive income 4. Provision for impairment of the credit of the other debt investment 5. Reserve for cash flow hedge 6. Conversion difference in foreign currency statements 7. Others VI. Total comprehensive income 2,516,637.77 5,467,514.73 27 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text VII. Earnings per share: (I) Basic earnings per share 0.0058 0.0123 (II) Diluted earnings per share 0.0058 0.0123 Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 7. Consolidated Cash Flow Statement from the Year Beginning to the End of the Reporting Period In CNY 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 goods and 3,097,232,379.30 2,957,222,327.75 supply of labor service Net increase of customers’ deposits and inter-bank deposits Net increase of borrowings from the central bank Net increase of borrowings from other financial institutions Cash received from the premium of the original insurance contract Net cash received from the reinsurance business Net increase of the reserve from policy holders and investment Cash received from interest, service charge and commission Net increase of loan from other banks Net increase of fund from repurchase business Net cash received from securities trading on commission Rebated tax received 1,592,055.84 5,027,853.96 Other operation activity related cash 52,861,160.51 62,653,660.31 receipts Subtotal of cash flow in from operating 3,151,685,595.65 3,024,903,842.02 28 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text activity Cash paid for purchase of goods and 2,086,461,819.63 1,726,446,571.91 reception of labor services Net increase of loans and advances to customers Net increase of due from central bank and due from other banks Cash from payment for settlement of the original insurance contract Net increase of the lending capital Cash paid for interest, service charge and commission Cash for payment of policy dividend Cash paid to and for staff 429,628,382.76 448,253,502.51 Various taxes and duties paid 121,220,554.66 187,144,694.13 Other business activity related cash 298,226,010.81 358,331,158.96 payments Subtotal of cash flow out from operating 2,935,536,767.86 2,720,175,927.51 activity Net cash flows arising from operating 216,148,827.79 304,727,914.51 activities II. Net cash flow arising from investment activities: Cash received from recovery of investment Cash received from investment income Net cash recovered from disposal of the fixed assets, intangible assets and other 84,522.81 203,980.63 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 investment 84,522.81 203,980.63 activity Cash paid for purchase/construction of fixed assets, intangible assets and other 90,396,549.63 120,991,258.41 long term assets Cash paid for investment 29 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text Net increase of the pledged loan Net cash paid for acquisition of subsidiaries and other operating units Other investment related cash payments Subtotal of cash flow out from investment 90,396,549.63 120,991,258.41 activity Net cash flow arising from investment -90,312,026.82 -120,787,277.78 activities III. Net cash flow arising from financing activities: Cash received from absorption of 18,585,600.00 investment Including: Cash received from the subsidiaries’ absorption of minority shareholders’ investment Cash received from loans 722,430,000.00 597,562,376.07 Other fund-raising related cash receipts Subtotal of cash flow in from fund raising 722,430,000.00 616,147,976.07 activity Cash paid for debt repayment 574,529,887.95 548,724,597.97 Cash paid for dividend/profit 104,338,909.03 105,454,043.34 distribution or repayment of interest Including: Dividend and profit paid by the subsidiaries to minority shareholders Cash paid for other financing activities 44,625,838.93 39,785,028.98 Sub-total of cash flow paid for financing 723,494,635.91 693,963,670.29 activities Net cash flow arising from financing -1,064,635.91 -77,815,694.22 activities IV. Influence of the change of exchange rate -598,916.46 335,308.39 on the cash and cash equivalents V. Net increase of cash and cash 124,173,248.60 106,460,250.90 equivalents Plus: Opening balance of cash and 315,093,565.09 162,623,059.97 cash equivalents VI. Ending balance of cash and cash 439,266,813.69 269,083,310.87 equivalents 30 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui 8. Cash Flow Statement from the Year Beginning to the End of the Reporting Period, Parent Company In CNY 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 goods and 119,137,070.41 105,592,825.76 supply of labor service Rebated tax received Other operation activity related cash 3,011,984,090.35 2,875,812,023.94 receipts Subtotal of cash flow in from operating 3,131,121,160.76 2,981,404,849.70 activity Cash paid for purchase of goods and reception of labor services Cash paid to and for staff 47,835,903.16 58,785,766.63 Various taxes and duties paid 7,536,504.27 7,943,935.36 Other business activity related cash 2,711,117,168.79 2,719,708,117.98 payments Subtotal of cash flow out from operating 2,766,489,576.22 2,786,437,819.97 activity Net cash flows arising from operating 364,631,584.54 194,967,029.73 activities II. Net cash flow arising from investment activities: Cash received from recovery of investment Cash received from investment income Net cash recovered from disposal of the fixed assets, intangible assets and other 1,550.00 134,060.00 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 investment 1,550.00 134,060.00 31 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text activity Cash paid for purchase/construction of fixed assets, intangible assets and other 16,237,898.29 33,684,664.21 long term assets Cash paid for investment 139,500,000.00 Net cash paid for acquisition of subsidiaries and other operating units Other investment related cash payments Subtotal of cash flow out from investment 155,737,898.29 33,684,664.21 activity Net cash flow arising from investment -155,736,348.29 -33,550,604.21 activities III. Net cash flow arising from financing activities: Cash received from absorption of 18,585,600.00 investment Cash received from loans 600,000,000.00 570,000,000.00 Other fund-raising related cash receipts Subtotal of cash flow in from fund raising 600,000,000.00 588,585,600.00 activity Cash paid for debt repayment 550,000,000.00 505,000,000.00 Cash paid for dividend/profit 102,195,242.57 104,638,171.74 distribution or repayment of interest Cash paid for other financing activities 44,625,838.93 39,785,028.98 Sub-total of cash flow paid for financing 696,821,081.50 649,423,200.72 activities Net cash flow arising from financing -96,821,081.50 -60,837,600.72 activities IV. Influence of the change of exchange rate -43,344.69 51,655.47 on the cash and cash equivalents V. Net increase of cash and cash 112,030,810.06 100,630,480.27 equivalents Plus: Opening balance of cash and 269,098,346.02 134,970,466.27 cash equivalents VI. Ending balance of cash and cash 381,129,156.08 235,600,946.54 equivalents 32 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of the Accounting Department: Tian Hui II. Note to the Adjustment of the Financial Statements 1. Adjustment of the relevant financial statements at the current year beginning according to the new standards for revenues and the new standards for lease initially implemented commencing from 2020 Is it necessary to adjust the balance sheet at the year beginning Yes Consolidated Balance Sheet In CNY Items December 31, 2019 January 01, 2020 Amount adjusted Current assets: Monetary capital 316,668,565.09 316,668,565.09 Settlement reserve Inter-bank lending Transactional financial assets Derivative financial assets Notes receivable 10,596,431.31 10,596,431.31 Accounts receivable 397,471,106.98 397,471,106.98 Financing with accounts receivable Advance payment 10,847,962.28 10,847,962.28 Receivable premium Reinsurance accounts receivable Reserve for reinsurance contract receivable Other receivables 47,239,844.58 47,239,844.58 Including: Interest receivable Dividends receivable Redemptory monetary capital for sale 33 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text Inventories 1,808,820,089.92 1,808,820,089.92 Contract assets Held-for-sale assets Non-current assets due within a year Other current assets 68,858,096.74 68,858,096.74 Total current assets 2,660,502,096.90 2,660,502,096.90 Non-current assets: Loan issuing and advance in cash Equity investment Other equity investment Long term accounts receivable Long-term equity 46,423,837.85 46,423,837.85 investment Investment in other equity 85,000.00 85,000.00 instruments Other non-current financial assets Investment-oriented real 407,503,307.24 407,503,307.24 estate Fixed assets 363,997,098.94 363,997,098.94 Construction-in-process Productive biological asset Oil and gas assets Use right assets Intangible assets 38,711,821.26 38,711,821.26 Development expenses Goodwill Long-term expenses to be 152,587,491.33 152,587,491.33 apportioned Deferred income tax asset 83,739,383.37 83,739,383.37 Other non-current assets 7,373,248.48 7,373,248.48 Other non-current assets 1,100,421,188.47 1,100,421,188.47 Total assets 3,760,923,285.37 3,760,923,285.37 34 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text Current liabilities: Short term borrowings 567,908,833.21 567,908,833.21 Borrowings from central bank Loans from other banks Transactional financial liabilities Derivative financial liabilities Notes payable Accounts payable 279,772,787.37 279,772,787.37 Advance receipts 23,433,463.57 3,434,407.04 -19,999,056.53 Contract liabilities 19,999,056.53 19,999,056.53 Income from sale of the repurchased financial assets Deposits taking and interbank placement Acting trading securities Acting underwriting securities Payroll payable 82,602,845.67 82,602,845.67 Tax payable 24,064,803.00 24,064,803.00 Other payables 119,616,721.63 119,616,721.63 Including: interest payable Dividends payable 848,233.27 848,233.27 Service charge and commission payable Payable reinsurance Held-for-sale liabilities Non-current liabilities due 360,140.00 360,140.00 within a year Other current liabilities Total current liabilities 1,097,759,594.45 1,097,759,594.45 Non-current liabilities: Reserve for insurance 35 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text contract Long-term borrowings 4,321,680.00 4,321,680.00 Bonds payable Including: preferred shares Perpetual bond Lease liabilities Long-term accounts payable Long-term payroll payable Estimated liabilities Deferred income 3,046,090.60 3,046,090.60 Deferred income tax liability 1,256,242.49 1,256,242.49 Other non-current liabilities Total non-current liabilities 8,624,013.09 8,624,013.09 Total liabilities 1,106,383,607.54 1,106,383,607.54 Owner’s equity: Capital stock 442,968,881.00 442,968,881.00 Other equity instruments Including: preferred shares Perpetual bond Capital Reserve 1,081,230,215.32 1,081,230,215.32 Less: shares in stock 71,267,118.78 71,267,118.78 Other comprehensive -940,209.09 -940,209.09 income Special reserve Surplus reserve 235,701,180.14 235,701,180.14 Reserve against general risks Retained earnings 966,840,818.40 966,840,818.40 Total owners’ equity attributable 2,654,533,766.99 2,654,533,766.99 to the parent company Minority shareholders’ 5,910.84 5,910.84 equity Total owner’s equity 2,654,539,677.83 2,654,539,677.83 36 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text Total liabilities and owners’ 3,760,923,285.37 3,760,923,285.37 equity Balance Sheet, Parent Company In CNY Items December 31, 2019 January 01, 2020 Amount adjusted Current assets: Monetary capital 270,673,346.02 270,673,346.02 Transactional financial assets Derivative financial assets Notes receivable Accounts receivable 2,848,025.39 2,848,025.39 Financing with accounts receivable Advance payment Other receivables 783,647,732.22 783,647,732.22 Including: Interest receivable Dividends receivable Inventories Contract assets Held-for-sale assets Non-current assets due within a year Other current assets 12,380,243.67 12,380,243.67 Total current assets 1,069,549,347.30 1,069,549,347.30 Non-current assets: Equity investment Other equity investment Long term accounts receivable Long-term equity 1,380,895,239.27 1,380,895,239.27 investment Investment in other equity 85,000.00 85,000.00 37 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text instruments Other non-current financial assets Investment-oriented real 329,970,083.18 329,970,083.18 estate Fixed assets 238,594,698.50 238,594,698.50 Construction-in-process Productive biological asset Oil and gas assets Use right assets Intangible assets 30,925,974.54 30,925,974.54 Development expenses Goodwill Long-term expenses to be 12,106,759.98 12,106,759.98 apportioned Deferred income tax asset 1,125,840.75 1,125,840.75 Other non-current assets 4,707,236.86 4,707,236.86 Other non-current assets 1,998,410,833.08 1,998,410,833.08 Total assets 3,067,960,180.38 3,067,960,180.38 Current liabilities: Short term borrowings 540,650,622.50 540,650,622.50 Transactional financial liabilities Derivative financial liabilities Notes payable Accounts payable 12,952,934.93 12,952,934.93 Advance receipts 3,434,407.04 3,434,407.04 Contract liabilities Payroll payable 19,019,554.57 19,019,554.57 Tax payable 1,713,130.68 1,713,130.68 Other payables 82,631,590.46 82,631,590.46 Including: interest payable Dividends payable 848,233.27 848,233.27 Held-for-sale liabilities 38 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text Non-current liabilities due within a year Other current liabilities Total current liabilities 660,402,240.18 660,402,240.18 Non-current liabilities: Long-term borrowings Bonds payable Including: preferred shares Perpetual bond Lease liabilities Long-term accounts payable Long-term payroll payable Estimated liabilities Deferred income 3,046,090.60 3,046,090.60 Deferred income tax liability Other non-current liabilities Total non-current liabilities 3,046,090.60 3,046,090.60 Total liabilities 663,448,330.78 663,448,330.78 Owner’s equity: Capital stock 442,968,881.00 442,968,881.00 Other equity instruments Including: preferred shares Perpetual bond Capital Reserve 1,086,885,756.42 1,086,885,756.42 Less: shares in stock 71,267,118.78 71,267,118.78 Other comprehensive income Special reserve Surplus reserve 235,701,180.14 235,701,180.14 Retained earnings 710,223,150.82 710,223,150.82 Total owner’s equity 2,404,511,849.60 2,404,511,849.60 Total liabilities and owners’ 3,067,960,180.38 3,067,960,180.38 equity 39 FIYTA Precision Technology Co., Ltd. 2020 Third Quarter Report, Full Text 2. Note to the retroactive adjustment of the previous comparative data according to the new standards for revenue and the new standards for lease to be implemented commencing from year 2020 Inapplicable III. Auditor’s Report Has the third quarter report been audited No 40