FIYTA Precision Technology Co., Ltd.
2020 First Quarter Report
April, 2020
Section 1 Important Notice
The Board of Directors, the Supervisory Committee, directors, supervisors and senior executives herebyindividually and collectively accept responsibility for the correctness, accuracy and completeness of thecontents of this report and confirm that there are neither material omissions nor errors which would render anystatement misleading.
All the directors attended the board meeting for reviewing the Quarter Report.
Huang Yongfeng, the Company leader, Chen Zhuo, chief financial officer, and Tian Hui, the manager of theaccounting department (treasurer) hereby confirm the authenticity and completeness of the financial reportenclosed in this Quarter Report.
Section 2 Company ProfileI. Summary of Accounting/Financial DataDoes the Company need to make retroactive adjustment or restatement of the accounting data of the previous yearNo
| Reporting period | Same period of the previous year | Year-on-year increase/decrease in the reporting period | |
| Revenue in CNY | 588,361,057.06 | 893,389,751.73 | -34.14% |
| Net profit attributable to the Company’s shareholders, in CNY | -12,974,795.53 | 64,359,084.45 | -120.16% |
| Net profit attributable to the Company’s shareholders less the non-recurring items, in CNY | -13,738,773.72 | 61,517,359.28 | -122.33% |
| Net cash flows arising from operating activities, in CNY | -106,747,751.88 | 10,730,388.47 | -1,094.82% |
| Basic earning per share (CNY/share) | -0.0294 | 0.1467 | -120.04% |
| Diluted earning per share (CNY/share) | -0.0294 | 0.1453 | -120.23% |
| Return on equity, weighted average | -0.49% | 2.47% | -2.96% |
| End of the reporting period | End of the previous year | Increase/decrease at the end of the year over the end of the previous year | |
| Total assets (in CNY) | 3,651,180,885.03 | 3,760,923,285.37 | -2.92% |
| Net profit attributable to the Company’s shareholders, in CNY | 2,635,350,676.43 | 2,654,533,766.99 | -0.72% |
Non-recurring gain/loss items and the amount involved
In CNY
| Items | Amount from the year beginning to the end of the reporting period | Note |
| Gain/loss from disposal of non-current assets, including the part offset from the provision for impairment of assets. | -62,305.15 | |
| 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 and conform with the national standard amount or quantity) | 742,609.63 |
| Other non-operating income and expenses other than the aforesaid items | 268,428.02 | |
| Less: Amount affected by the income tax | 184,754.31 | |
| Total | 763,978.19 | -- |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No. 1 on InformationDisclosure for Companies Offering their Securities to the Public – Non-recurring Gains and Losses and its non-recurringgain/loss items as illustrated in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offeringtheir Securities to the Public – Non-recurring Gains and Losses which have been defined as recurring gains and losses, itis necessary to explain the reason.
InapplicableII. Statement of total shareholders and shares held by the top 10 shareholders by the end of the reporting period
1. Quantity of the shares held by the common shareholders and preferred shareholders whose voting rights arerestored and statement of shareholding by the top 10 shareholders
In shares
| Total common shareholders at the end of the reporting period | 37,827 | Total preference shareholders with the voting power recovered at the end of the reporting period (if any) | 0 | |||
| Shareholding by top 10 shareholders | ||||||
| Names of the Shareholders | Nature of the shareholder | Shareholding proportion | Shareholding quantity | Number of the restricted shares held | Pledging or freezing | |
| Status of the shares | Quantity | |||||
| AVIC International Holding Limited | State corporate | 36.79% | 162,977,327 | 0 | ||
| #Yang Zugui | Domestic natural person | 3.84% | 17,018,806 | 0 | ||
| Yang Sancai | Domestic natural person | 1.17% | 5,202,700 | 0 | ||
| ZHONGYIN FUND - ICBC - Shanghai Haitong Securities & Assets Management Co., Ltd. | Domestic non-state-owned legal person | 0.23% | 999,200 | 0 | ||
| Zhang Xuewei | Domestic natural person | 0.22% | 958,000 | 0 | ||
| Penghua Fund - Minsheng Bank - Penghua Fund - Huili No. 1 Assets Management Plan | Domestic non-state-owned legal person | 0.21% | 951,700 | 0 | ||
| Ma Xinting | Domestic natural person | 0.20% | 900,000 | 0 | ||
| # Li Enhai | Domestic natural person | 0.20% | 883,500 | 0 | ||
| # Shen Xuewen | Domestic natural person | 0.20% | 883,420 | 0 | ||
| Liang Shaoyun | Domestic natural person | 0.18% | 781,312 | 0 | ||
| Shares held by top 10 shareholders of unrestricted shares | ||||||
| Names of the Shareholders | Quantity of unrestricted shares held a | Share type | ||||
| Share type | Quantity | |||||
| AVIC International Holding Limited | 162,977,327 | CNY ordinary shares | 162,977,327 | |||
| #Yang Zugui | 17,018,806 | CNY ordinary shares | 17,018,806 | |||
| Yang Sancai | 5,202,700 | CNY ordinary shares | 5,202,700 | |||
| ZHONGYIN FUND - ICBC - Shanghai Haitong Securities & Assets Management Co., Ltd. | 999,200 | CNY ordinary shares | 999,200 | |||
| Zhang Xuewei | 958,000 | CNY ordinary shares | 958,000 | |||
| Penghua Fund - Minsheng Bank - Penghua Fund - Huili No. 1 Assets Management Plan | 951,700 | CNY ordinary shares | 951,700 | |||
| Ma Xinting | 900,000 | CNY ordinary shares | 900,000 | |||
| # Li Enhai | 883,500 | CNY ordinary shares | 883,500 | |||
| # Shen Xuewen | 883,420 | CNY ordinary shares | 883,420 | |||
| Liang Shaoyun | 781,312 | CNY ordinary shares | 781,312 | |||
| Explanation on associated relationship or consistent action of the above shareholders | Inapplicable |
| Note to the top 10 shareholders involved in margin financing & securities lending (if any) | Inapplicable |
Did the top ten common shareholders or top ten shareholders of unrestricted common shares conduct contractualrepurchase during the reporting period?No
2. Total preferred shareholders and the shareholding by the top 10 preferred shareholdersInapplicable
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
| Items | Amount at the end of the reporting period | Amount at the year beginning | Variation proportion (%) | Cause of the movement |
| Advance payments | 17,670,023.88 | 10,847,962.28 | 62.89% | It was mainly due to increase of the advance payment during the reporting period over the year beginning |
| Accounts payable | 109,655,368.72 | 279,772,787.37 | -60.81% | It was mainly due to partial payment for goods procured during the reporting period |
| Advance receipts | 11,669,963.64 | 23,433,463.57 | -50.20% | It was mainly due to decrease of the advances on sales during the reporting period over the year beginning |
| Payroll payable | 43,225,454.85 | 82,602,845.67 | -47.67% | Mainly consists of the commissions of the previous year,the year-end bonus, etc. payable to employees during the reporting period |
(II) Profit Statement Items
| Items | Reporting period | Same period of the previous year | Variation proportion (%) | Cause of the movement |
| Operating revenue | 588,361,057.06 | 893,389,751.73 | -34.14% | Mainly due to the impact of COVID-19 epidemic upon the revenue from the watch industry |
| Taxes and surcharges | 3,674,419.66 | 7,967,226.11 | -53.88% | Mainly due to that affected by the decline of the revenue in the reporting period., the VAT, etc. decreased. |
| Other income | 742,609.63 | 3,807,765.25 | -80.50% | Mainly due to decrease of the government subsidy received during the reporting period |
| Operation profit | -18,792,471.52 | 82,187,315.46 | -122.87% | Mainly due to decrease of the operation revenue during the reporting period |
(III)Items of Cash Flow Statement
| Items | Reporting period | Same period of the previous year | Variation proportion (%) | Cause of the movement |
| Net cash flows arising from operating activities | -106,747,751.88 | 10,730,388.47 | -1094.82% | It mainly refers to the decrease of sales revenue collection during the reporting period affected by the decline in operation revenue |
| Net cash flow arising from investment activities | -24,341,946.96 | -50,729,730.85 | -52.02% | It mainly refers to the decrease of the capital input for store improvement during the reporting period compared with the same period of last year and the project payment paid for FIYTA Clock Building in the same period of the previous year. |
| Net cash flow arising from financing activities | 82,992,799.27 | 22,731,443.97 | 265.10% | It was mainly due to the mild increase of the bank loans over the same period of the previous year during the reporting period |
| Net increase of cash and cash equivalents | -48,188,978.55 | -17,400,331.36 | 176.94% | It mainly refers to the decrease of sales revenue collection during the reporting period affected by the decline in operation revenue |
FIYTA's principal business activities are watch brand management and watch retails. The sudden outbreak of COVID-19at the beginning of 2020 resulted in a serious negative impact on the offline consumption. During the reporting period, thecompany launched the "War System", strictly in accordance with the deployment of the central government and superiors,and did its best to prevent and control the epidemic. In order to cope with the impact of the epidemic on the business, theCompany quickly adjusted its business strategy, made full efforts to promote cost control, and strengthened cash flowmanagement. While carrying forward the resumption of work and production of offline channels, the Company alsoaccelerated the investment in online platforms, and actively expanded community marketing and social marketing throughWeChat, live show, etc. Judging from the performance of the operating data in each month of the first quarter, theCompany showed a robust market recovery ability and strong adaptability to the adjustment. In February, the monthworst affected by the epidemic, the Company's business revenue fell by more than 70% year on year and recorded asubstantial loss.In march, with the operating environment still extremely difficult, the Company's revenue returned to about70% of the level of the same period last year with only a slight deficit. It is expected that the Company as a whole mayachieve monthly profit in April and gradually turn to normal in the second quarter. After the baptism with the epidemic, ourteam shall be further enhanced in its combat capability.
At present, it is still uncertain about the development trend of the epidemic both at home and abroad and its subsequentimpact on the consumer market. The Company shall pay close attention to and actively cope with the situation. Under thepersonal direction of General Secretary Xi Jinping, China has brought the epidemic under fundamental control. The
Chinese government is trying every means to support the whole people to get through this tough time with various policiesand promote the economy recovery. At present, the Company has restored its production and operation basically tonormal, the rate of employees’ return to work has exceeded 96%, and there is no confirmed COVID-19 case; theCompany's offline sales channels have been basically restored to operation, and the sales have been improved day byday. The order delivery of the Company's precision technology and smart watches and other innovative business as wellas the launch of new smart watches are being carried out in an planned way and the Company is maintaining a goodmomentum of growth in its business. The Company shall continue to take "brand power, product power and channelpower" as the core, speed up the digital transformation, strengthen the competitive superiority; shall increase investmentin precision technology to build hard core strength; accelerate innovation-driven development, and promote theCompany's overall business to smart retail and high-end precision technology transformation and upgrading. TheCompany believes that all the above work shall provide the Company with continuous impetus to meet marketopportunities and sustainable development in the future.II. Progress of significant events, their effects and analysis on the solutions
1. Repurchase and Cancellation of the Partially Restricted Shares Involved in 2018 A Share Restricted StockIncentive Plan (Phase 1)The 3rd session of the Ninth Board of Directors held on November 12, 2018 and 2019 1st Extraordinary General Meetingheld on January 11, 2019 decided to start 2018 A-Share Restricted Stock Incentive Program (Phase I), which was later onreviewed and approved at the 5th session of the Ninth Board of Directors held on January 11, 2019, and the Companyeventually granted 4.224 million restricted A-shares to 128 persons eligible for the incentive. For the detail, refer to therelevant announcement disclosed in the Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn onJanuary 12, 2019. This part of A-share restricted shares was all granted and registered for listing by January 30, 2019.
As three original incentive objects of the above incentive plan, namely Wu Yue (27,000 shares granted), Yang Shuzhi(20,000 shares granted), Lin Yichao (20,000 shares granted) have resigned, according to the 2018 A-Share RestrictedStock Incentive Plan (Phase I) (Draft Revision), they have no longer met the incentive conditions. The 15th session ofthe Ninth Board of Directors held on January 10, 2020 and the 16th Session of the Board of Directors held on March 18,2020 reviewed and approved the "Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the 2018A-Share Restricted Stock Incentive Plan (Phase I), according to which the Company was going to repurchase and cancel67,000 A-share restricted shares held by the aforesaid three incentive objects, already granted but not yet lifted. The saidproposal is still necessary to be submitted to 2020 1st Extraordinary General Meeting for approval before implementation.
| General on Significant Events | Date of disclosure | Inquiry index of the provisional reports disclosed in the website. |
| Announcement on the Resolution of the 15th Session of the Ninth Board of Directors, 2020-003 | January 11, 2020 | www.cninfo.com.cn |
| Announcement on Repurchase and Cancellation of the Partially Restricted Shares Involved in 2018 A Share Restricted Stock Incentive Plan (Phase I) 2020-005 | January 11, 2020 | www.cninfo.com.cn |
| Announcement on the Resolution of the 16th Session of the Ninth Board of Directors, 2020-011 | March 20, 2020 | www.cninfo.com.cn |
| Announcement on Repurchase and Cancellation of the Partially Restricted Shares Involved in 2018 A Share Restricted Stock Incentive Plan (Phase I) 2020-016 | March 20, 2020 | www.cninfo.com.cn |
| Notice on Holding 2020 1st Extraordinary General Meeting 2020-018 | March 27, 2020 | www.cninfo.com.cn |
Progress of implementation of the stock repurchaseThe 7th session of the Ninth Board of Directors held on April 4, 2019 and 2019 2nd Extraordinary General Meeting held onApril 23, 2019, reviewed and approved the “Proposal for the Repurchase of Partial Domestically Listed Foreign Shares(B-shares) in the Company, and subsequently the Company disclosed the repurchase report and published a series ofannouncements on the progress in accordance with relevant regulations. For detail of the above, please refer to therelevant announcements disclosed by the Company in the Securities Times, Hong Kong Commercial Daily andwww.cninfo.com.cn.
As of the end of the reporting period, the Company repurchased 13,730,000 shares in the Company by way of centralizedbidding, accounting for 3.10% of the Company's total capital stock; the highest transaction price of the repurchasedshares was HK$6.56 per share, and the lowest transaction price was HK$5.55/share, the total amount paid has beenHK$83,367,947.33 (excluding stamp duty, commission, and other transaction expenses.) The Company’s repurchase ofthe shares was in compliance with the relevant laws and regulations and in line with the Company's establishedrepurchase program.
Progress of implementation of reduction of the holding size of the shares repurchased by centralized biddingInapplicableIII. Commitments unfinished in implementation by the Company's actual controller, shareholders, related parties,acquirer and the Company, etc. in the reporting periodInapplicableIV. Portfolio investmentInapplicableV. Entrusted financial managementInapplicable
VI. Investment in derivativesInapplicableVII. Registration Form of Activities of Reception for Investigation and Survey, Communications, Interviews, etc.in the Reporting Period
| Time of Reception | Way of Reception | Types of Visitors Received | Index of Basic Information on the Investigation and Survey |
| January 08, 2020 | Field survey | Institution | http://irm.cninfo.com.cn/ircs/company/companyDetail?stockcode=000026&orgId=gssz0000026 |
VIII. Outward guarantee against regulationsInapplicableIX. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and its Related PartiesInapplicable
Section 4. Financial StatementsI. Financial Statements
1. Consolidated Balance Sheet
Prepared by FIYTA Precision Technology Co., Ltd.
March 31, 2020
In CNY
| Items | March 31, 2020 | December 31, 2019 |
| Current assets: | ||
| Monetary capital | 268,479,586.54 | 316,668,565.09 |
| Settlement reserve | ||
| Inter-bank lending | ||
| Transactional financial assets | ||
| Derivative financial assets | ||
| Notes receivable | 9,668,859.78 | 10,596,431.31 |
| Accounts receivable | 311,885,195.69 | 397,471,106.98 |
| Financing with accounts receivable | ||
| Advance payment | 17,670,023.88 | 10,847,962.28 |
| Receivable premium | ||
| Reinsurance accounts receivable | ||
| Reserve for reinsurance contract receivable | ||
| Other receivables | 49,717,683.27 | 47,239,844.58 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Redemptory monetary capital for sale | ||
| Inventories | 1,843,415,903.86 | 1,808,820,089.92 |
| Contract assets | ||
| Held-for-sale assets | ||
| Non-current assets due within a year | ||
| Other current assets | 69,096,258.54 | 68,858,096.74 |
| Total current assets | 2,569,933,511.56 | 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 | 46,423,837.85 | 46,423,837.85 |
| Investment in other equity instruments | 85,000.00 | 85,000.00 |
| Other non-current financial assets | ||
| Investment-oriented real estate | 403,692,645.30 | 407,503,307.24 |
| Fixed assets | 358,386,829.56 | 363,997,098.94 |
| Construction-in-process | ||
| Productive biological asset | ||
| Oil and gas assets | ||
| Use right assets | ||
| Intangible assets | 38,829,425.07 | 38,711,821.26 |
| Development expenses | ||
| Goodwill | ||
| Long-term expenses to be apportioned | 140,138,381.10 | 152,587,491.33 |
| Deferred income tax asset | 87,494,206.01 | 83,739,383.37 |
| Other non-current assets | 6,197,048.58 | 7,373,248.48 |
| Total non-current assets | 1,081,247,373.47 | 1,100,421,188.47 |
| Total assets | 3,651,180,885.03 | 3,760,923,285.37 |
| Current liabilities: | ||
| Short term borrowings | 678,466,219.71 | 567,908,833.21 |
| Borrowings from central bank | ||
| Loans from other banks | ||
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 109,655,368.72 | 279,772,787.37 |
| Advance receipts | 11,669,963.64 | 23,433,463.57 |
| Contract liabilities |
| Income from sale of the repurchased financial assets | ||
| Deposits taking and interbank placement | ||
| Acting trading securities | ||
| Income from securities underwriting on commission | ||
| Payroll payable | 43,225,454.85 | 82,602,845.67 |
| Taxes payable | 23,288,035.07 | 24,064,803.00 |
| Other payables | 140,620,055.32 | 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 within a year | 360,530.00 | 360,140.00 |
| Other current liabilities | ||
| Total current liabilities | 1,007,285,627.31 | 1,097,759,594.45 |
| Non-current liabilities: | ||
| Reserve for insurance contract | ||
| Long-term borrowings | 4,236,227.50 | 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 | 8,538,560.59 | 8,624,013.09 |
| Total liabilities | 1,015,824,187.90 | 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 | 1,083,156,650.58 | 1,081,230,215.32 |
| Less: shares in stock | 91,957,211.65 | 71,267,118.78 |
| Other comprehensive income | -932,506.16 | -940,209.09 |
| Special reserve | ||
| Surplus Reserve | 235,701,180.14 | 235,701,180.14 |
| Reserve against general risks | ||
| Retained earnings | 966,413,682.52 | 966,840,818.40 |
| Total owners’ equity attributable to the parent company | 2,635,350,676.43 | 2,654,533,766.99 |
| Minority shareholders’ equity | 6,020.70 | 5,910.84 |
| Total owner’s equity | 2,635,356,697.13 | 2,654,539,677.83 |
| Total liabilities and owners’ equity | 3,651,180,885.03 | 3,760,923,285.37 |
Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of theAccounting Department: Tian Hui
2. Balance Sheet (Parent Company)
In CNY
| Items | March 31, 2020 | December 31, 2019 |
| Current assets: | ||
| Monetary capital | 225,509,931.03 | 270,673,346.02 |
| Transactional financial assets | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 7,728,736.59 | 2,848,025.39 |
| Financing with accounts receivable | ||
| Advance payment | ||
| Other receivables | 878,915,557.85 | 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 | 14,570,623.48 | 12,380,243.67 |
| Total current assets | 1,126,724,848.95 | 1,069,549,347.30 |
| Non-current assets: | ||
| Equity investment | ||
| Other equity investment | ||
| Long term accounts receivable | ||
| Long-term equity investment | 1,382,285,766.91 | 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 | 326,845,239.02 | 329,970,083.18 |
| Fixed assets | 235,429,318.87 | 238,594,698.50 |
| Construction-in-process | ||
| Productive biological asset | ||
| Oil and gas assets | ||
| Use right assets | ||
| Intangible assets | 29,842,987.17 | 30,925,974.54 |
| Development expenses | ||
| Goodwill | ||
| Long-term expenses to be apportioned | 11,267,085.29 | 12,106,759.98 |
| Deferred income tax asset | 1,125,840.75 | 1,125,840.75 |
| Other non-current assets | 5,246,834.86 | 4,707,236.86 |
| Total non-current assets | 1,992,128,072.87 | 1,998,410,833.08 |
| Total assets | 3,118,852,921.82 | 3,067,960,180.38 |
| Current liabilities: | ||
| Short term borrowings | 650,746,476.67 | 540,650,622.50 |
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 1,484,563.53 | 12,952,934.93 |
| Advance receipts | 2,679,507.07 | 3,434,407.04 |
| Contract liabilities |
| Payroll payable | 13,021,118.57 | 19,019,554.57 |
| Taxes payable | 1,835,031.11 | 1,713,130.68 |
| Other payables | 65,132,401.16 | 82,631,590.46 |
| Including: interest payable | ||
| Dividends payable | 848,233.27 | 848,233.27 |
| Held-for-sale liabilities | ||
| Non-current liabilities due within a year | ||
| Other current liabilities | ||
| Total current liabilities | 734,899,098.11 | 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 | 737,945,188.71 | 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 | 1,088,812,191.68 | 1,086,885,756.42 |
| Less: shares in stock | 91,957,211.65 | 71,267,118.78 |
| Other comprehensive income | ||
| Special reserve | ||
| Surplus Reserve | 235,701,180.14 | 235,701,180.14 |
| Retained earnings | 705,382,691.94 | 710,223,150.82 |
| Total owner’s equity | 2,380,907,733.11 | 2,404,511,849.60 |
| Total liabilities and owners’ equity | 3,118,852,921.82 | 3,067,960,180.38 |
Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of theAccounting Department: Tian Hui
3. Consolidated Profit Statement
In CNY
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| I. Turnover | 588,361,057.06 | 893,389,751.73 |
| Including: operating income | 588,361,057.06 | 893,389,751.73 |
| Interest income | ||
| Earned insurance premium | ||
| Service charge and commission income | ||
| II. Total operating costs | 608,046,690.52 | 815,055,386.73 |
| Including: Operating costs | 354,482,460.46 | 532,797,117.99 |
| 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 | 3,674,419.66 | 7,967,226.11 |
| Sales costs | 183,463,601.55 | 199,499,630.53 |
| Administrative expenses | 49,093,729.64 | 55,752,416.90 |
| R & D expenditures | 9,810,864.52 | 9,953,936.60 |
| Financial expenses | 7,521,614.69 | 9,085,058.60 |
| Where: Interest cost | 6,565,834.69 | 6,209,488.02 |
| Interest income | 710,713.51 | 429,095.38 |
| Plus: Other income | 742,609.63 | 3,807,765.25 |
| Investment income (loss is stated with “-”) |
| Including: return on investment in associate and joint venture | ||
| 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 is stated with “-”) | 212,857.46 | 95,827.25 |
| Loss from impairment of assets (loss is stated with “-”) | ||
| Income from disposal of assets (loss is stated with “-“) | -62,305.15 | -50,642.04 |
| III. Operating Profit (loss is stated with “-“) | -18,792,471.52 | 82,187,315.46 |
| Plus: Non-operating income | 273,393.02 | 32,398.46 |
| Less: non-operating expenditures | 4,965.00 | 224,800.40 |
| IV. Total profit (total loss is stated with “-”) | -18,524,043.50 | 81,994,913.52 |
| Less: Income tax expense | -5,549,247.97 | 17,635,829.07 |
| V. Net Profit (net loss is stated with “-“) | -12,974,795.53 | 64,359,084.45 |
| (I) Classification based on operation sustainability | ||
| 1. Net Profit from sustainable operation (net loss is stated with “-”) | -12,974,795.53 | 64,359,084.45 |
| 2. Net Profit from termination of operation (net loss is stated with “-”) | ||
| (II) Classification by ownership | ||
| 1. Net profit attributable to the parent company’s owner | -12,974,795.53 | 64,359,084.45 |
| 2. Minority shareholders’ gain/loss | ||
| VI. Net of other comprehensive income after tax | 7,812.79 | -3,567,296.18 |
| Net of other comprehensive income after tax attributable to the parent company’s owner | 7,702.93 | -3,567,150.95 |
| (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 | 7,702.93 | -3,567,150.95 |
| 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 | 7,702.93 | -3,567,150.95 |
| 7. Others | ||
| Net amount of other comprehensive income after tax attributable to minority shareholders | 109.86 | -145.23 |
| VII. Total comprehensive income | -12,966,982.74 | 60,791,788.27 |
| Total comprehensive income attributable to the parent company’s owner | -12,967,092.60 | 60,791,933.50 |
| Total comprehensive income attributable to minority shareholders | 109.86 | -145.23 |
| VIII. Earnings per share: |
| (I) Basic earnings per share | -0.0294 | 0.1467 |
| (II) Diluted earnings per share | -0.0294 | 0.1453 |
Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of theAccounting Department: Tian Hui
4. Statement of Profit, Parent Company
In CNY
| Items | Amount incurred in the reporting period | Amount incurred in the previous period |
| I. Revenue | 26,379,756.89 | 32,237,822.48 |
| Less: Operating cost | 8,821,367.61 | 5,353,494.43 |
| Taxes and surcharges | 727,419.42 | 1,101,258.73 |
| Sales costs | 262,850.91 | |
| Administrative expenses | 15,775,264.67 | 17,701,057.40 |
| R & D expenditures | 3,807,693.17 | 4,976,563.54 |
| Financial expenses | 1,890,037.46 | 1,785,619.37 |
| Where: Interest cost | 2,556,955.67 | 2,092,544.95 |
| Interest income | 650,773.18 | 358,260.51 |
| Plus: Other income | 61,679.85 | 2,126,000.00 |
| Investment income (loss is stated with “-”) | ||
| Including: return on investment in associate and joint venture | ||
| Gain from the derecognition of the financial assets measured at amortised cost (loss is 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 is stated with “-”) | ||
| Loss from impairment of assets (loss is stated with “-”) | ||
| Income from disposal of assets (loss is stated with “-“) | -2,074.20 | |
| II. Operating Profit (loss is stated with “-“) | -4,843,196.50 | 3,443,754.81 |
| Plus: Non-operating income | 2,737.62 | 12,000.00 |
| Less: non-operating expenditures | 200,000.00 | |
| III. Total profit (total loss is stated with “-“) | -4,840,458.88 | 3,255,754.81 |
| Less: Income tax expense | ||
| IV. Net Profit (net loss is stated with “-“) | -4,840,458.88 | 3,255,754.81 |
| (I) Net Profit from sustainable operation (net loss is stated with “-”) | -4,840,458.88 | 3,255,754.81 |
| (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 | -4,840,458.88 | 3,255,754.81 |
| VII. Earnings per share: | ||
| (I) Basic earnings per share | -0.0110 | 0.0074 |
| (II) Diluted earnings per share | -0.0110 | 0.0073 |
Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of theAccounting Department: Tian Hui
5. Consolidated Cash Flow Statement
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 supply of labor service | 717,413,076.16 | 975,041,907.75 |
| Net increase of customers’ deposit and due from banks | ||
| 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 taxes received | 257,310.78 | 1,702,739.93 |
| Other operation activity related cash receipts | 9,436,996.31 | 20,886,425.52 |
| Subtotal of cash flow in from operating activity | 727,107,383.25 | 997,631,073.20 |
| Cash paid for purchase of goods and reception of labor services | 559,509,759.87 | 641,518,556.89 |
| 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 | 168,291,839.52 | 180,290,878.29 |
| Taxes paid | 36,992,378.49 | 62,198,665.36 |
| Other business activity related cash payments | 69,061,157.25 | 102,892,584.19 |
| Subtotal of cash flow out from operating activity | 833,855,135.13 | 986,900,684.73 |
| Net cash flows arising from operating activities | -106,747,751.88 | 10,730,388.47 |
| II. Net cash flow arising from investment activities: | ||
| Cash received from recovery of investment | ||
| Cash received from investment income | ||
| Net cash from disposal of fixed assets, intangible assets and recovery of other long term assets | 2,912.82 | 36,918.89 |
| Net cash received from disposal of subsidiaries and other operating units |
| Other investment related cash receipts | ||
| Subtotal of cash flow in from investment activity | 2,912.82 | 36,918.89 |
| Cash paid for purchase/construction of fixed assets, intangible assets and other long term assets | 24,344,859.78 | 50,766,649.74 |
| Cash paid for investment | ||
| Net increase of the pledged loan | ||
| Net cash paid for acquisition of subsidiaries and other operation units | ||
| Other investment related cash payments | ||
| Subtotal of cash flow out from investment activity | 24,344,859.78 | 50,766,649.74 |
| Net cash flow arising from investment activities | -24,341,946.96 | -50,729,730.85 |
| III. Net cash flow arising from financing activities: | ||
| Cash received from absorbing investment | 18,585,600.00 | |
| Incl.: Cash received from the subsidiaries’ absorption of minority shareholders’ investment | ||
| Cash received from loans | 200,000,000.00 | 210,000,000.00 |
| Other fund-raising related cash receipts | ||
| Subtotal of cash flow in from fund raising activity | 200,000,000.00 | 228,585,600.00 |
| Cash paid for debt repayment | 90,000,000.00 | 199,632,048.06 |
| Cash paid for dividend/profit distribution or repayment of interest | 6,304,375.08 | 6,222,107.97 |
| Including: Dividend and profit paid by the subsidiaries to minority shareholders | ||
| Cash paid for other financing activities | 20,702,825.65 | |
| Sub-total cash flow paid for financing activities | 117,007,200.73 | 205,854,156.03 |
| Net cash flow arising from financing activities | 82,992,799.27 | 22,731,443.97 |
| IV. Influence of the change of exchange rate on the cash and cash equivalents | -92,078.98 | -132,432.95 |
| V. Net increase of cash and cash equivalents | -48,188,978.55 | -17,400,331.36 |
| Plus: Opening balance of cash and cash equivalents | 315,093,565.09 | 162,623,059.97 |
| VI. Ending balance of cash and cash equivalents | 266,904,586.54 | 145,222,728.61 |
Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of theAccounting Department: Tian Hui
6. Cash Flow Statement, 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 supply of labor service | 21,432,068.81 | 34,539,681.84 |
| Rebated taxes received | ||
| Other operation activity related cash receipts | 867,764,855.43 | 875,652,514.96 |
| Subtotal of cash flow in from operating activity | 889,196,924.24 | 910,192,196.80 |
| Cash paid for purchase of goods and reception of labor services | ||
| Cash paid to and for staff | 18,989,965.73 | 23,140,836.36 |
| Taxes paid | 4,030,582.74 | 2,725,897.25 |
| Other business activity related cash payments | 980,594,240.37 | 900,850,128.56 |
| Subtotal of cash flow out from operating activity | 1,003,614,788.84 | 926,716,862.17 |
| Net cash flows arising from operating activities | -114,417,864.60 | -16,524,665.37 |
| II. Net cash flow arising from investment activities: | ||
| Cash received from recovery of investment |
| Cash received from investment income | ||
| Net cash from disposal of fixed assets, intangible assets and recovery of other long term assets | 23,000.00 | |
| Net cash received from disposal of subsidiaries and other operating units | ||
| Other investment related cash receipts | ||
| Subtotal of cash flow in from investment activity | 23,000.00 | |
| Cash paid for purchase/construction of fixed assets, intangible assets and other long term assets | 13,830,945.06 | 29,300,461.40 |
| Cash paid for investment | ||
| Net cash paid for acquisition of subsidiaries and other operation units | ||
| Other investment related cash payments | ||
| Subtotal of cash flow out from investment activity | 13,830,945.06 | 29,300,461.40 |
| Net cash flow arising from investment activities | -13,830,945.06 | -29,277,461.40 |
| III. Net cash flow arising from financing activities: | ||
| Cash received from absorbing investment | 18,585,600.00 | |
| Cash received from loans | 200,000,000.00 | 210,000,000.00 |
| Other fund-raising related cash receipts | ||
| Subtotal of cash flow in from fund raising activity | 200,000,000.00 | 228,585,600.00 |
| Cash paid for debt repayment | 90,000,000.00 | 195,000,000.00 |
| Cash paid for dividend/profit distribution or repayment of interest | 6,242,457.22 | 5,887,220.50 |
| Cash paid for other financing activities | 20,702,825.65 | |
| Sub-total cash flow paid for financing activities | 116,945,282.87 | 200,887,220.50 |
| Net cash flow arising from financing activities | 83,054,717.13 | 27,698,379.50 |
| IV. Influence of the change of exchange rate on the cash and cash equivalents | 30,677.54 | -40,167.58 |
| V. Net increase of cash and cash equivalents | -45,163,414.99 | -18,143,914.85 |
| Plus: Opening balance of cash and cash equivalents | 269,098,346.02 | 134,970,466.27 |
| VI. Ending balance of cash and cash equivalents | 223,934,931.03 | 116,826,551.42 |
Legal representative: Huang Yongfeng Chief Financial Officer: Chen Zhuo Person in charge of theAccounting Department: Tian HuiII. Note to the Adjustment of the Financial Statements
1. Adjustment of the relevant financial statements at the current year beginning according to the new standardsfor revenues and the new standards for lease initially implemented commencing from 2020Consolidated Balance Sheet
In CNY
| Items | December 31, 2019 | January 01, 2020 | Amount involved in the adjustment |
| Current assets: | |||
| Monetary capital | 316,668,565.09 | 316,668,565.09 | |
| Notes receivable | 10,596,431.31 | 10,596,431.31 | |
| Accounts receivable | 397,471,106.98 | 397,471,106.98 | |
| Advance payments | 10,847,962.28 | 10,847,962.28 | |
| Other receivables | 47,239,844.58 | 47,239,844.58 | |
| Inventories | 1,808,820,089.92 | 1,808,820,089.92 | |
| 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: | |||
| Long-term equity investment | 46,423,837.85 | 46,423,837.85 | |
| Investment in other equity instruments | 85,000.00 | 85,000.00 | |
| Investment-oriented real estate | 407,503,307.24 | 407,503,307.24 |
| Fixed assets | 363,997,098.94 | 363,997,098.94 | |
| Intangible assets | 38,711,821.26 | 38,711,821.26 | |
| Long-term expenses to be apportioned | 152,587,491.33 | 152,587,491.33 | |
| Deferred income tax asset | 83,739,383.37 | 83,739,383.37 | |
| Other non-current assets | 7,373,248.48 | 7,373,248.48 | |
| Total 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 | |
| Current liabilities: | |||
| Short term borrowings | 567,908,833.21 | 567,908,833.21 | |
| 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 liability | 19,999,056.53 | 19,999,056.53 | |
| Payroll payable | 82,602,845.67 | 82,602,845.67 | |
| Taxes payable | 24,064,803.00 | 24,064,803.00 | |
| Other payables | 119,616,721.63 | 119,616,721.63 | |
| Dividends payable | 848,233.27 | 848,233.27 | |
| Non-current liabilities due within a year | 360,140.00 | 360,140.00 | |
| Total current liabilities | 1,097,759,594.45 | 1,097,759,594.45 | |
| Non-current liabilities: | |||
| Long-term borrowings | 4,321,680.00 | 4,321,680.00 | |
| Deferred income | 3,046,090.60 | 3,046,090.60 | |
| Deferred income tax liability | 1,256,242.49 | 1,256,242.49 | |
| 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 | |
| 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 income | -940,209.09 | -940,209.09 | |
| Surplus reserve | 235,701,180.14 | 235,701,180.14 |
| Retained earnings | 966,840,818.40 | 966,840,818.40 | |
| Total owners’ equity attributable to the parent company | 2,654,533,766.99 | 2,654,533,766.99 | |
| Minority shareholders’ equity | 5,910.84 | 5,910.84 | |
| Total owner’s equity | 2,654,539,677.83 | 2,654,539,677.83 | |
| Total liabilities and owners’ equity | 3,760,923,285.37 | 3,760,923,285.37 |
Note to the AdjustmentInapplicable
2. Note to the retroactive adjustment of the previous comparative data according to the new standards forrevenue and the new standards for lease to be implemented commencing from year 2020InapplicableIII. Auditor’s ReportHas the first quarter report been auditedNo