FIYTA Precision Technology Co., Ltd. 2020 Semi-Annual Report July, 2020
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FIYTA Precision Technology Co., Ltd. 2020 Semi-annual Report, Full Text FIYTA Precision Technology Co., Ltd. 2020 Semi-annual Report July, 2020 1 FIYTA Precision Technology Co., Ltd. 2020 Semi-annual Report, Full Text Section 1 Important Notice, Table of Contents and Definition 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. Huang Yongfeng, the Company leader, Chen Zhuo, chief financial officer, and Tian Hui, the manager of the accounting department (treasurer) hereby confirm the authenticity and completeness of the financial report enclosed in this Annual Report. All the directors attended the board meeting for reviewing the Annual Report. Any perspective description, such as future plan, development strategy, etc. involved in the Semi-annual Report shall not constitute the Company’s substantial commitment to the investors and the investors should please pay attention to their investment risks. In this report, the Company has described in detail the existing macro-economic risks as well as operation risks. Investors are advised to refer to the contents concerning risks possibly to be confronted with by the Company and the countermeasures to be taken in Section 4 Discussion and Analysis of the Operation The Company intends neither to distribute any cash dividend or bonus shares nor to convert any reserve into share capital. 2 FIYTA Precision Technology Co., Ltd. 2020 Semi-annual Report, Full Text Table of Contents 2020 Semi-annual Report Section 1 Important Notice, Table of Contents and Definition Section 2 Company Profile and Financial Highlights Section 3 Business Summary Section 4 Discussion and Analysis of the Operation Section 5 Significant Events Section 6 Change of Shares and Particulars about Shareholders Section 7 About the Preferred Shares Section 8 About the Convertible Bonds Section 9 Directors, Supervisors and Senior Executives Section 10 Bond Related Information Section 11 Financial Report Chapter 12 Documents Available for Inspection 3 FIYTA Precision Technology Co., Ltd. 2020 Semi-annual Report, Full Text Definitions Terms to be defined Refers to Definition This Company, the Company or FIYTA Refers to FIYTA Precision Technology Co., Ltd. AVIC Refers to Aviation Industry Corporation of China, Ltd. AVIC International Refers to AVIC International Holding Corporation AVIC International Shenzhen Refers to AVIC International Shenzhen Co., Ltd. AVIC IHL Refers to AVIC International Holding Limited The Sales Co. Refers to FIYTA Sales Co., Ltd. Harmony Refers to Shenzhen Harmony World Watches Center Co., Ltd. Precision Technology Co. Refers to Shenzhen FIYTA Precision Technology Co., Ltd. Science & Technology Development Co. Refers to Shenzhen FIYTA Technology Development Co., Ltd. the Hong Kong Co. Refers to FIYTA (Hong Kong) Limited CMPO Refers to China Merchants Property Operation & Service Co., Ltd. Rainbow Ltd. Refers to Rainbow Digital Commercial Co., Ltd. Shennan Circuit Refers to Shennan Circuit Co., Ltd. AVIC Property Refers to AVIC Property Management Co., Ltd. 4 FIYTA Precision Technology Co., Ltd. 2020 Semi-annual Report, Full Text Section 2 Company Profile and Financial Highlights I. Company Profile Short form of the stock: FIYTA and FIYTA B Stock Code 000026 and 200026 Short form of the stock after the change FIYTA (if any) Stock Exchange Listed with Shenzhen Stock Exchange Company Name in Chinese FIYTA Precision Technology Co., Ltd. Abbreviation of Registered Company 飞亚达公司 Name in Chinese Company name in English (if any) FIYTA Precision Technology Co., Ltd. Abbreviation of the Company name in FIYTA English (if any) Legal Representative Huang Yongfeng II. Liaison Persons and Communication Information Secretary of the Board Securities Affairs Representative Name Pan Bo Zhang Yong 18th Floor, FIYTA Technology Building, Gaoxin S. Road 20th Floor, FIYTA Technology Building, Gaoxin S. Road Liaison Address One, Nanshan District, Shenzhen One, Nanshan District, Shenzhen Tel. 0755-86013669 0755-86013669 Fax 0755-83348369 0755-83348369 Email [email protected] [email protected] III. Other Information 1. Way of Communication There is no change in the registered address, office address and post code, company website and email during the reporting period. For the detail, refer to 2019 Annual Report. 2. Information Disclosure and Place where the Regular Reports are Prepared There is no change in the newspapers designated for disclosing the information, the Internet website designated by China Securities Regulatory Commission for publishing the Semi-annual Report, and the place where the Company’s Semi-annual Report is prepared and available for inquiry. For the detail, refer to 2019 Annual Report. 5 FIYTA Precision Technology Co., Ltd. 2020 Semi-annual Report, Full Text 3. Other Relevant Information The Company has changed its name in Chinese, its name in English and abbreviation of its A-share securities. For the detail, refer to the Announcement on Change of the Company Name and the Abbreviation of its A-share Securities 2020-006 published on the Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn. IV. Summary of Accounting/Financial Data Does the Company need to make retroactive adjustment or restatement of the accounting data of the previous years No Year-on-year increase/decrease in Reporting period Same period of the previous year the reporting period Revenue in CNY 1,581,834,715.03 1,785,036,020.23 -11.38% Net profit attributable to the Company’s shareholders, in 77,738,906.30 123,495,460.90 -37.05% CNY Net profit attributable to the Company’s shareholders less 68,669,477.45 113,627,146.69 -39.57% the non-recurring items, in CNY Net cash flows arising from operating activities, in CNY 103,645,235.27 159,014,650.37 -34.82% Basic earning per share (CNY/share) 0.1775 0.2788 -36.33% Diluted earning per share (CNY/share) 0.1775 0.2788 -36.33% Return on equity, weighted average 2.91% 4.69% -1.78% Increase/decrease at the end of the End of the reporting period End of the previous year year over the end of the previous year Total assets (in CNY) 3,837,627,638.42 3,760,923,285.37 2.04% Net profit attributable to the Company’s shareholders, in 2,628,145,112.24 2,654,533,766.99 -0.99% CNY V. Difference in the Accounting Data based respectively on the Chinese Accounting Standards (CAS) and International Accounting Standards (IAS) 1. Differences in the net profit disclosed in the financial report & the net assets attributable to the Company’s shareholders respectively according to the IAS and the CAS. Inapplicable 2. Differences in the net profit disclosed in the financial report & the net assets attributable to the Company’s shareholders according to both the IAS and the CAS Inapplicable 6 FIYTA Precision Technology Co., Ltd. 2020 Semi-annual Report, Full Text VI. Non-recurring gain/loss items and the amount involved In CNY Items Amount Note Gain/loss from disposal of non-current assets, including the part offset from the -200,140.17 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 the Company’s business 10,154,015.67 and conform with the national standard amount or quantity) Reversal of the impairment provision for receivables and contract assets 296,622.87 which have been tested individually for impairment Other non-operating income and expenses other than the aforesaid items 1,273,213.01 Less: Amount affected by the income tax 2,454,282.53 Total 9,069,428.85 -- 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 7 FIYTA Precision Technology Co., Ltd. 2020 Semi-annual Report, Full Text Section 3 Business Summary I. Main business the Company operated during the reporting period FIYTA is engaged in principal business of watch brand management and brand watch retails. In respect of the technological nature, it belongs to precision technology industry. Depending on its accumulated technological and industrial advantages in the high-end precision technology field, the Company is also actively carrying forward development of innovation businesses, including precision technology, smart watches, etc. Affected by the COVID-19 epidemic, the watch industry has been severely impacted. In the face of severe market challenges, the Company resolutely implements the strategic deployment of the Central Party Committee and the superior, and comprehensively promotes the epidemic prevention and control and the resumption of work and production. During the reporting period, there was no significant change in the Company's principal business and operation model, industry development status and the Company’s status in the industry. For details, please refer to 2019 Annual Report. II. Significant Movements in Prime Assets 1. Significant Movements