2024 Annual Report, Summary
of FIYTA Precision Technology Co., Ltd.
Stock Code: 000026;200026 Abbreviation of the Stock: FIYTA;FIYTA B Announcement No.: 2025-007
FIYTA Precision Technology Co., Ltd.
2024 Annual Report, Summary
I. Important Notice
This summary of the Annual Report is quoted out of the full text of the Annual Report. Investors desirous to understand entirely the
Company's operation results, financial position and future development planning are advised to carefully read the full text of the
Annual Report which is published in the medium designated by CSRC.
All the directors attended the board meeting for reviewing the Annual Report.
Indication of qualified audit opinion
Inapplicable
The profit distribution preplan or the preplan for conversion of reserve into capital for the reporting period reviewed by the Board of
Directors
Is there any public reserve converted into capital stock
No
Reviewed and approved by the Board of Directors , the Company's profit distribution preplan is summarized as follows: based on the
total share capital on the equity registration date when the profit distribution plan is implemented, cash dividends of RMB 4.00
(including tax) will be distributed to all shareholders for every 10 shares, without bonus share (including tax), and surplus funds will
not be converted into additional capital.
Profit Distribution Preplan for Preferred Shares during the Reporting Period Approved by the Resolution of the Board of Directors
Inapplicable
This report is prepared in both Chinese and English versions. If there is any ambiguity in understanding the report, the Chinese
version shall prevail.
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2024 Annual Report, Summary
of FIYTA Precision Technology Co., Ltd.
II. Company Profile
1. Company Information
Short form of the stock: FIYTA and FIYTA B Stock Code 000026 and 200026
Stock Exchange Listed with Shenzhen Stock Exchange
Stock abbreviation before
None
change (if any)
Liaison Persons and
Secretary of the Board Securities Affairs Representative
Communication Information
Names Song Yaoming Xiong Yaojia
20th Floor, FIYTA Technology Building, 18th Floor, FIYTA Technology Building,
Office Address Gaoxin S. Road One, Nanshan District, Gaoxin S. Road One, Nanshan District,
Shenzhen Shenzhen
Fax 0755-83348369 0755-83348369
Tel. 0755-86013669 0755-86013669
Email investor@fiyta.com.cn investor@fiyta.com.cn
2. Summary of the Principal Business or Leading Products during the Reporting Period
(1) Industry status during the reporting period
In 2024, according to the data of the National Bureau of Statistics, the total retail sales of domestic consumer goods increased by
3.5% year-on-year, the total consumer market grew steadily but differentiated significantly, and the traditional watch consumer
market faced multiple pressures such as demand contraction and intensified competition.
In terms of consumption structure, luxury goods and optional consumption continue to be under pressure, while experiential
consumption such as health and technology is on the rise. Bain's report indicated that the sales of personal luxury goods in mainland
China fell by 18%-20% year-on-year, among which the watch category was significantly affected by consumption outflow (the
proportion of overseas consumption rose to 40%) and preference shift. Data from the Federation of the Swiss Watch Industry showed
that the export value of Swiss watches to mainland China fell by 25.8% year-on-year throughout the year, and sales of watches in
various price ranges declined to varying degrees; Meanwhile, the PwC report revealed that the demand for sports equipment and
health monitoring equipment is rising, and IDC data showed that the shipments of wrist-worn devices (including smart watches and
bracelets) in China increased by 20.1% YoY in the first three quarters of this year, ranking first in the world.
In terms of consumption channels, fragmentation of offline channels has intensified, with discount stores and immersive
experience stores becoming the main growth drivers, while customer traffic to traditional department stores and specialty stores has
declined; The penetration rate of online channels has stabilized, and the proportion of refined operation modes such as livestream e-
commerce and member private domains has increased.
In terms of consumption preferences, young consumers are less loyal to brands and they are more concerned about cost-
effectiveness and consumption experience. Proactive healthcare, technological interaction, dedicated services and other models are
more popular.
In this context, the Company will insist on its own brand positioning, strengthen brand building and differentiation, and enhance
the core competitiveness of traditional watch business; consolidate channel operation management, optimize store structure and form
mode, and actively deploy high-quality and incremental channels. By emphasizing the customer orientation, the Company will
increase AI and other technical empowerment and digital applications, and continue to deepen customer research; anchor the
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2024 Annual Report, Summary
of FIYTA Precision Technology Co., Ltd.
transformation and upgrading goals, enhance the core technology capabilities of precision technology and smart wearable, and
actively promote the expansion of related new industries, so as to cope with market changes.
(2) Analysis of Core Business
In 2024, the Company, adhering to seeking progress while maintaining stability, strengthened and expanded the main business of
watches, to improve core competitiveness, and focused on scientific and technological innovation, accelerated transformation and
upgrading, enhanced core functions, deepened quality and efficiency improvement, prevented asset risks, identified operation
counterattack points, and carried out various operation and management work in an orderly manner. During the reporting period, in
the environment of continuous pressure on the watch consumer market, the Company achieved operating income of RMB 3,940.53
million yuan, a YoY decrease of 13.77%, with the total profit of RMB 286.11 million yuan, down 34.53% YoY. The Company paid
close attention to lean operation and risk prevention and control. At the end of the period, the asset-liability ratio was 15.37%, and the
net cash flow from business activities was RMB 537 million yuan, indicating high operating efficiency and controllable operating
risks. Moreover, the Company consolidated confidence in development and attached importance to shareholder returns. It has
implemented the cash dividend plan in 2023 and the domestic listed foreign shares (B shares) share repurchase and cancellation plan
(Phase IV), and has formulated a cash dividend plan in 2024, to pay cash dividends of 4.00 yuan (tax included) to all shareholders
for every 10 shares.
During the reporting period, the Company's main business initiatives are as follows:
(I) Firmly promote the implementation of brand positioning upgrade strategy and spread aviation and Chinese culture
During the reporting period, the aerospace product matrix was optimized continuously by positioning "FIYTA" brand as a "high-
quality Chinese watch brand featuring aerospace watch", and a three-dimensional product layout was implemented in combination
with aerospace characteristic IP. The integration with intangible cultural heritage was strengthened by incorporating traditional
intangible cultural heritage crafts such as Song porcelain and mother-of-pearl inlay into product design, so as to showcase China's
excellent traditional culture. The IP cooperation with "Y-20 Transport Aircraft", CNNC and other "Pillars of a Great Power" was
deepened, and the brand was frequently exposed through Milan Fashion Week, cooperation with Xia Zhiguang, "Shenzhou-18",
"Shenzhou-19", Zhuhai International Aviation & Aerospace Exhibition, Nasdaq large screen display and other brand events.
(II) Continue to promote the optimization of channel structure and improve to the efficiency of operation and
management
During the reporting period, for the "FIYTA" brand, the focus was on building offline core stores, and taking aerospace theme
stores as the starting point, to actively deploy high-quality channels such as mainstream shopping malls, and promote the
transformation of business models. The efficiency of self-owned stores and customer was improved through the "Little Red Book +
TikTok Store Livestream + Local Life" model. By strengthening the development of new products online and the construction of self-
operated livestream matrix, during the "618" period, the e-commerce GMV achieved contrarian growth, ranking first in the turnover
of domestic watches in the whole network. Adhering to the integration of product and sales, the Company carried out global
marketing, and made the popular "small gold watch" enter the TOP list of major platforms, helping the brand to significantly increase
its share in mainstream e-commerce platforms. Meanwhile, the Company actively expanded overseas channels and duty-free
channels, to develop incremental markets.
"Harmony" actively expanded cooperation with medium and high-end brands, developed offline channels with high quality, and
steadily promoted the integrated development of online and offline channels; Deepen and refine excellent operation in an all-round
way, and systematically improve operational efficiency from online, offline, stores, brands, members, services and other dimensions.
(III) Continue to increase investment in scientific and technological innovation and strengthen the strength of precision
technology
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2024 Annual Report, Summary
of FIYTA Precision Technology Co., Ltd.
During the reporting period, the Company's self-developed automatic mechanical movement "Zhaixin" became the first female
aerospace watch movement certified by the French Besanon Observatory. The Company actively promoted the large-scale
commercial use of the self-developed movement, the product application of high-level mechanical movements such as the tourbillon,
the development of key parts such as clamps and hairsprings, and the development and application of aerospace materials and
precision timing technology.
(IV) Continue to promote digital transformation and deepen digital platform application
During the reporting period, the Company continued to carry out digital operations, improving and iterating the digital retail
system; Focusing on customer needs and profiles, optimized the member life cycle model to enhance core metrics such as conversion
of potential customers and retention of existing customers, ensuring continuous improvement. Deepening the private domain
operations, leveraged mini-programs to cultivate private domain traffic and develop activities like private domain group purchases.
(V) Continue to promote the exploration of new businesses and actively cultivate strategic emerging industries
During the reporting period, the Company strengthened its precision technology business, enhancing its technical capabilities to
meet the demands of complex and high-precision products, driving the expansion of new customers. The smart wearable business
continued to advance with upgrades in product and technological capabilities. There was a strong emphasis on enhancing both
software and hardware technologies, along with new product development. Under the "Jeep" brand, new products such as the curved
screen square smartwatch integrating AI technology were launched, achieving the increased revenue during the reporting period.
3. Summary of Accounting/Financial Data
(1) Summary of Accounting/Financial Data in the Past Three Years
Does the Company need to make retroactive adjustment or restatement of the accounting data of the previous years
No
In CNY
Increase or decrease at
the end of the current
As at the end of
As at the end of 2024 year compared with the As at the end of 2022
2023
end of the previous
year
Total assets (yuan) 4,007,690,717.02 4,204,260,897.08 -4.68% 4,117,143,911.99
Net assets attributable to
shareholders of the listed 3,391,843,200.61 3,333,805,752.19 1.74% 3,136,423,492.15
company (yuan)
Increase or decrease
2024 2023 2022
YoY
Operating income (yuan) 3,940,530,934.07 4,569,690,002.99 -13.77% 4,354,096,880.36
Net profit attributable to
shareholders of the listed 220,350,184.99 333,178,102.37 -33.86% 266,681,451.84
company (yuan)
Net profit after deducting
non-recurring profits and
losses attributable to 208,728,288.68 316,806,208.13 -34.11% 249,791,455.73
shareholders of the listed
company (yuan)
Net cash flows from
536,730,960.29 632,401,487.98 -15.13% 476,228,776.52
operating activities (yuan)
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2024 Annual Report, Summary
of FIYTA Precision Technology Co., Ltd.
Basic earnings per share
0.5385 0.8082 -33.37% 0.6398
(yuan/share)
Diluted earnings per share
0.5378 0.8075 -33.40% 0.6398
(yuan/share)
Return on weighted
6.55% 10.28% -3.73% 8.68%
average net assets
(2) Major Accounting Data Based on Quarters
In CNY
Q1 Q2 Q3 Q4
Operating revenue 1,065,150,876.00 1,011,247,035.32 963,368,988.81 900,764,033.94
Net profit attributable
to shareholders of the 75,499,096.30 71,639,386.04 50,484,466.22 22,727,236.43
listed company
Net profit after
deducting non-
recurring profits and
69,755,955.88 70,689,265.93 50,362,069.34 17,920,997.53
losses attributable to
shareholders of the
listed company
Net cash flows from
-964,281.20 137,495,077.72 180,837,164.86 219,362,998.91
operating activities
Are the above financial indicators or their totals significantly different from the financial indicators disclosed by the Company in the
quarterly and semi-annual reports?
No
4. Capital Stock and Shareholders
(1) Number of the common shareholders and preferred shareholders whose voting rights are restored and shareholding by the
top 10 shareholders
In shares
Total
number of
ordinary
sharehold Total number of preferred
Total number Total number of
ers at the shareholders whose voting rights
of ordinary preferred
end of the have been restored at the end of
shareholders shareholders whose
latest the previous month prior to the
as at the end 26,316 25,508 voting rights have 0 0
month disclosure date of the annual
of the been restored at the
before the report (if any)
reporting end of the reporting
date of
period period (if any)
disclosure
of the
annual
report
Shareholders holding more than 5% stock or the top 10 stock shareholders' shareholding details (excluding shares lent through
refinancing)
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2024 Annual Report, Summary
of FIYTA Precision Technology Co., Ltd.
Pledged, tagged or
Shareholding Number of shares frozen
Shareholder' Number of restrictive
Nature held at the end of the
s name Ratio stocks held
reporting period Num
Status
ber
AVIC
International State-owned Not
40.17% 162,977,327 0 0
Holding legal person applicable
Limited
Domestic
Not
# Wu Jilin natural 4.43% 17,972,441 0 0
applicable
person
Domestic
Not
Xu Guoliang natural 1.39% 5,659,968 0 0
applicable
person
Domestic
Not
Qiu Hong natural 0.62% 2,510,000 0 0
applicable
person
Domestic
Not
#Zhu Rui natural 0.53% 2,149,400 0 0
applicable
person
604 Portfolio
of National
Not
Social Others 0.41% 1,676,300 0 0
applicable
Security
Fund
SWS MU
Fund - China
Everbright
Bank - SWS
MU
Not
Changhong Others 0.41% 1,658,000 0 0
applicable
No. 1
Collective
Asset
Management
Plan
Industrial
and
Commercial
Bank of
China
Limited - GF
ZZGX Not
Others 0.36% 1,457,500 0 0
Central applicable
Government-
owned
Enterprise
Shareholder
Return
Trading
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2024 Annual Report, Summary
of FIYTA Precision Technology Co., Ltd.
Open-Ended
Index
Securities
Investment
Fund
Domestic
Not
#Wang Xing natural 0.34% 1,387,800 0 0
applicable
person
Domestic
Not
#Qu Yongjie natural 0.31% 1,271,900 0 0
applicable
person
Notes to shareholders' related
relationship or persons acting The Company does not know whether the above 10 shareholders are related or act in concert.
in concert
Description of the above The shareholder, AVIC International Holdings Limited, authorized a representative to exercise
shareholders' involvement in voting rights on behalf of the Company at the 2023 annual general meeting of shareholders, the
the commissioned/entrusted 1st extraordinary general meeting in 2024 and the 2nd extraordinary general meeting in 2024,
voting rights and waiver of representing 162,977,327 shares. For details of the voting results, please refer to the relevant
voting rights announcements issued by the Company on the CNINFO website.
Participation of shareholders holding more than 5% of the shares, top ten shareholders, and top ten shareholders with unlimited
tradable shares in the lending of shares through the refinancing business
Not applicable
The top ten shareholders and the top ten shareholders with unlimited tradable shares have changed compared to the previous period
due to the reasons of refinancing, lending, and repayment
Not applicable
(2) Total Preference Shareholders and the Shareholding by the Top 10 Preference Shareholders
Inapplicable
(3) Block Diagram of the Ownership and Control Relations between the Company and the Actual Controller
Block diagram of property rights and control relationship between the Company and the actual controller
5. Status of Bonds Existing on the Date of Approval of the Annual Report
Inapplicable
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2024 Annual Report, Summary
of FIYTA Precision Technology Co., Ltd.
III. Significant Events
(I) Repurchase of a portion of domestic listed foreign shares (B-shares)
The Company's 11th meeting of the 10th Board of Directors and the 2022 Annual General Meeting of Shareholders approved the Plan
for the Repurchase of a Portion of Domestic Listed Foreign Shares (B-shares), and subsequently disclosed the repurchase report and a
series of progress announcements in accordance with relevant regulations. As of April 25, 2024, the implementation of the repurchase
plan has been completed, and the repurchased 9,355,763 B-shares have been canceled on May 10, 2024. For detailed information,
please refer to the company's announcements "Announcement on the Expiration and Implementation Results of the Repurchase of
Certain Domestically Listed Foreign Shares (B Shares) 2024-020" and "Announcement on the Completion of the Cancellation of
Repurchased Domestically Listed Foreign Shares (B Shares) and Share Changes 2024-021," disclosed on CNINFO on April 26, 2024,
and May 14, 2024, respectively.
(II) General election of the Board of Directors and the Board of Supervisors and appointment of senior officers
Upon the deliberation and approval at the 20th meeting of the 10th Board of Directors, the 18th meeting of the 10th Board of
Supervisors and the 2nd Extraordinary General Meeting in 2024, the Company elected the directors of the 11th Board of Directors
and the shareholder representative supervisors of the 11 th Board of Supervisors; Upon the deliberation and approval at the 5th
Congress of Workers and Staff of the 5th Session, the Company elected the employee representative supervisor of the 11th Board of
Supervisors. For details, please refer to the Announcement on the General Election of the Board of Directors 2024-027, the
Announcement on the General Election of the Board of Supervisors 2024-028 and the Announcement on the General Election of
Employee Representative Supervisors 2024-033 disclosed by the Company on August 21 and August 27, 2024 on the CNINFO
website.
Upon the deliberation and approval at the first meeting of the 11th Board of Directors and the first meeting of the 11 th Board of
Supervisors, the Company completed the election of the chairman of the Board of Directors, the appointment of senior officers and
the election of chairman of the Board of Supervisors. For details, please refer to the Announcement on the Completion of General
Election of the Board of Directors and the Board of Supervisors and the Appointment of Senior Officers disclosed by the Company
on September 7, 2024 on the CNINFO website.
(III) Adjustment of the Strategy Committee of the Board of Directors and revision of relevant systems
In order to meet the needs of the strategic development, improve the Company's ESG management level, and improve the ESG
management system, the Board of Directors agreed to adjust the "Strategy Committee" to the "Strategy and ESG Committee" upon
the deliberation and approval at the fourth meeting of the 11th Board of Directors, and added ESG management-related
responsibilities on the basis of the original duties of the Strategy Committee. Meanwhile, the relevant provisions of the Detailed
Rules for the Implementation of Special Committees of the Board of Directors were revised, and the ESG Management System was
formulated. For details, please refer to the Announcement on Adjusting the Strategy Committee of the Board of Directors to the
Strategy and ESG Committee of the Board of Directors and the full text of relevant systems disclosed by the Company on January 2,
2025 on the CNINFO website.
FIYTA Precision Technology Co., Ltd.
Board of Directors
March 14, 2025
8
