Stock Code: 000026;200026 Abbreviation of the Stock: FIYTA;FIYTA B Announcement No.: 2024-008
FIYTA Precision Technology Co., Ltd.
2023 Annual Report, Summary
I. Important NoticeThis summary of the Annual Report is quoted out of the full text of the Annual Report. Investors desirous to understand entirely theCompany's operation results, financial position and future development planning are advised to carefully read the full text of theAnnual 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 opinionInapplicable
The profit distribution preplan or the preplan for conversion of reserve into capital for the reporting period reviewed by the Board ofDirectorsIs there any public reserve converted into capital stockNo
Reviewed and approved by the Board of Directors , the Company's profit distribution preplan is summarized as follows: based on thetotal share capital as at the date of record (with the shares in the special securities account for repurchase deducted) when the profitdistribution plan is implemented in the future, the Company is going to distribute dividend to all the shareholders at the rate ofCNY4.00 for every 10 shares (with the tax inclusive), 0 bonus shares (with the tax inclusive),and no public reserve shall be convertedinto share capital.
Profit Distribution Preplan for Preferred Shares during the Reporting Period Approved by the Resolution of the Board of DirectorsInapplicable
This report is prepared in both Chinese and English versions. If there is any ambiguity in understanding the report, the Chineseversion shall prevail.
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 change (if any) | None | ||
| Liaison Persons and Communication Information | Secretary of the Board | Securities Affairs Representative | |
| Names | Song Yaoming | Xiong Yaojia | |
| Office Address | 20th Floor, FIYTA Technology Building, Gaoxin S. Road One, Nanshan District, Shenzhen | 18th Floor, FIYTA Technology Building, Gaoxin S. Road One, Nanshan District, Shenzhen | |
| Fax | 0755-83348369 | 0755-83348369 | |
| Tel. | 0755-86013669 | 0755-86013669 | |
| investor@fiyta.com.cn | investor@fiyta.com.cn | ||
2. Summary of the Principal Business or Leading Products during the Reporting Period
（1）Main businesses engaged by the Company during the reporting period
The Company's establishment and development originated from aviation precision technology and material technology.Adhering to the values of "brand leadership, customer orientation, value creation, cooperation and responsibility, and learning andinnovation", with the mission of "inheriting the spirit of serving the country by aviation and creating a quality life", it focuses on thewatch industry and forms a core business layout where its self-owned watch brand and the retail channel of famous watches promoteeach other. In addition, the Company actively explores and cultivates new businesses such as precision technology and smartwearables, and is in a stage of continuous development.
The Company is deeply committed to professional watchmaking capacity building and brand operation, and has multiple self-owned brands such as "FIYTA" and "EMILE CHOORIET", covering different dimensions such as mid to high end, mass professional,and fashion cool. Among them, the core self-owned brand positioning of "FIYTA" is "a high-quality Chinese watch brand withaviation and aerospace watches as its characteristic", adhering to the concept of "nation" as the core and "trendy" as the form,continuously creating differentiated characteristics, and upgrading to "youthfulness, high-end, and mainstream"; At the same time, itcontinuously increases investment in technological innovation fields such as movement and aviation technology applications, relyingon the advantages of aviation technology and aerospace quality, and continuously provide professional timing watches for China'saerospace industry, gradually establishing a leading position in the domestic industry and expanding our brand influence.
In order to seize the opportunities in the domestic watch market and promote the long-term development of its self-own brand,the Company has established the "Harmony" watch retail channel. "Harmony" is committed to becoming the best comprehensiveservice provider for luxury watches, and has long-term and in-depth cooperation with numerous watch groups and brands. It hashoned industry-leading operational management and customer service capabilities, and has become a leading professionalcommercial brand in high-end chain for luxury watches in China.
In recent years, the Company has adhered to the development principle of "technology sharing the same origin, industry sharingthe same roots, and value sharing the same direction". With the strength of precision technology and industrial accumulation, theCompany has extended and expanded its precision technology business and smart wearable business, and has now begun to takeshape.
（2）Industry conditions of the Company during the reporting period
In 2023, the National Bureau of Statistics announced a YoY GDP growth of 5.2%. Driven by policies such as expandingdomestic demand and promoting consumption, coupled with the growth of household income, the driving force of consumption oneconomic growth continues to increase, gradually becoming the main driving force of economic growth.The domestic watch consumption market is still under overall pressure due to the diversion of Hong Kong and some overseasregions, as well as the rationalization of consumer preferences. Among them, the middle and high-end watch consumer market isfacing periodic fluctuations. According to the data released by the Swiss Watch Association, the cumulative amount of Swiss exportsto Chinese Mainland increased by about 8% YoY, and Chinese Mainland is still the second largest consumer market of Swiss watches;The consumer market for mid to low-end watches is still sluggish, with fierce competition in segmented fields. In an uncertaineconomic environment, the differentiation of watch brands is further highlighted. Brands with high reputation, differentiatedcharacteristics, and quality services have stronger consumer resilience.The Company's main watch business covers medium, high, and fashion brands, with multiple types of channels complementingeach other. It continues to attach importance to investment in brand differentiation, channel operation, customer service, and otheraspects. Faced with market fluctuations, the main business maintains a healthy development trend as a whole.
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 yearsNo
In CNY
| 2023 | 2022 | Changes compared to the previous year in this year | 2021 | |
| Operating revenue (RMB) | 4,569,690,002.99 | 4,354,096,880.36 | 4.95% | 5,243,733,540.93 |
| Net profit attributable to shareholders of the listed company (RMB) | 333,178,102.37 | 266,681,451.84 | 24.93% | 387,840,282.95 |
| Net profit attributable to shareholders of the listed company after deducting non recurring gains and losses (RMB) | 316,806,208.13 | 249,791,455.73 | 26.83% | 369,418,754.83 |
| Net cash flows from operating activities (RMB) | 632,401,487.98 | 476,228,776.52 | 32.79% | 547,249,108.45 |
| Basic earnings per share (RMB/share) | 0.8082 | 0.6398 | 26.32% | 0.9036 |
| Diluted earnings per share (RMB/share) | 0.8075 | 0.6398 | 26.21% | 0.9036 |
| Weighted average ROE | 10.28% | 8.68% | 1.60% | 13.39% |
| At the end of 2023 | At the end of 2022 | Changes at the end of this year compared to | At the end of 2021 |
| the end of the previous year | ||||
| Total assets (RMB) | 4,204,260,897.08 | 4,117,143,911.99 | 2.12% | 4,110,579,952.49 |
| Net assets attributable to shareholders of the listed company (RMB) | 3,333,805,752.19 | 3,136,423,492.15 | 6.29% | 3,013,232,642.53 |
(2) Major Accounting Data Based on Quarters
In CNY
| Q1 | Q2 | Q3 | Q4 | |
| Operating revenue | 1,200,095,568.76 | 1,164,409,693.80 | 1,162,738,360.51 | 1,042,446,379.92 |
| Net profit attributable to shareholders of the listed company | 103,189,489.23 | 84,205,578.00 | 78,162,925.58 | 67,620,109.56 |
| Net profit attributable to shareholders of the listed company after deducting non recurring gains and losses | 95,484,229.79 | 81,868,313.87 | 75,522,620.72 | 63,931,043.75 |
| Net cash flows from operating activities | 80,169,964.00 | 264,489,879.62 | 134,414,639.49 | 153,327,004.87 |
Are the above financial indicators or their totals significantly different from the financial indicators disclosed by the Company in thequarterly 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 thetop 10 shareholders
In shares
| Total number of common shareholders at the end of the reporting period | 28,145 | Total number of common shareholders at the end of the previous month prior to the disclosure date of the annual report | 28,183 | Total number of preferred shareholders with restored voting rights at the end of the reporting period (if any) (see Note 8) | 0 | Total number of preferred shareholders with restored voting rights at the end of the previous month prior to the disclosure date of the annual report (if any) (see Note 8) | 0 | |
| Shareholdings of shareholders holding more than 5% or the top 10 shareholders (excluding shares lent through refinancing) | ||||||||
| Name of | Nature of | Holding | Number of shares held at | Changes during the reporting | Number of | Number of shares held | Situations of pledge, marking | |
| Shareholders | shareholders | ratio | the end of the reporting period | period | shares held with limited sales conditions | with unlimited sales conditions | or freezing | ||
| Share status | Quantity | ||||||||
| AVIC International Holding Limited | State-owned legal person | 39.25% | 162,977,327 | 0 | 0 | 162,977,327 | Not applicable | 0 | |
| #Wu Jilin | Domestic natural persons | 4.35% | 18,043,627 | 98,013 | 0 | 18,043,627 | Not applicable | 0 | |
| #Xu Guoliang | Domestic natural persons | 1.74% | 7,242,768 | 1,978,000 | 0 | 7,242,768 | Not applicable | 0 | |
| Qiu Hong | Domestic natural persons | 0.59% | 2,470,000 | 100,000 | 0 | 2,470,000 | Not applicable | 0 | |
| #Zhu Rui | Domestic natural persons | 0.34% | 1,407,100 | -295,500 | 0 | 1,407,100 | Not applicable | 0 | |
| CITIC Securities Company Limited | State-owned legal person | 0.33% | 1,368,078 | 1,248,109 | 0 | 1,368,078 | Not applicable | 0 | |
| #Qu Yongjie | Domestic natural persons | 0.31% | 1,286,800 | 20,000 | 0 | 1,286,800 | Not applicable | 0 | |
| Industrial and Commercial Bank of China Ltd. - GF CSI Guoxin Central-SOEs Shareholder Return ETF | Other | 0.29% | 1,212,700 | 1,212,700 | 0 | 1,212,700 | Not applicable | 0 | |
| Chen Hao | Domestic natural persons | 0.27% | 1,101,643 | 12,700 | 0 | 1,101,643 | Not applicable | 0 | |
| China Construction Bank Corporation - China Universal CSI Guoxin Central-SOEs Shareholder Return ETF | Other | 0.26% | 1,071,900 | 1,071,900 | 0 | 1,071,900 | Not applicable | 0 | |
| Explanation on associated relationship or consistent action of the above shareholders | The Company is unaware of whether the 10 shareholders mentioned above have any related relationships or are concerted actors. | ||||||||
| Explanation of the participation of the top 10 common shareholders in the margin trading and securities lending business (if any) | 1. In addition to holding 10,597,777 shares through the ordinary securities account, shareholder Wu Jilin also holds 7,445,850 shares through the customer credit trading guarantee securities account of China CICC Wealth Management Securities Company Limited, totaling 18,043,627 shares; | ||||||||
2. In addition to holding 6,640,868 shares through the ordinary securitiesaccount, shareholder Xu Guoliang also holds 601,900 shares through thecustomer credit trading guarantee securities account of Guosen Securities Co.,Ltd., totaling 7,242,768 shares;
3. In addition to holding 62,000 shares through the ordinary securities account,
shareholder Zhu Rui also holds 1,345,100 shares through the customer credittrading guarantee securities account of First Capital Securities Co., Ltd.,totaling 1,407,100 shares;
4. In addition to holding 42,800 shares through the ordinary securities account,
shareholder Qu Yongjie also holds 1,244,000 shares through the customercredit trading guarantee securities account of Shanxi Securities CompanyLimited, totaling 1,286,800 shares.
Top 10 shareholders participating in the lending of shares through refinancing businessNot applicableChanges in the top 10 shareholders compared to the previous periodUnit: shares
| Changes in the top 10 shareholders compared to the end of the previous period | |||||
| Name of Shareholders (Full Name) | New additions/exits during this reporting period | Number of shares lent through refinancing and not yet repaid at the end of the period | Number of shares held in the ordinary account and credit account of shareholders, as well as the shares lent through refinancing and not yet repaid at the end of the period | ||
| Total quantity | Proportion to the total share capital | Total quantity | Proportion to the total share capital | ||
| CITIC Securities Company Limited | New addition | 0 | 0.00% | 1,368,078 | 0.33% |
| Industrial and Commercial Bank of China Ltd. - GF CSI Guoxin Central-SOEs Shareholder Return ETF | New addition | 0 | 0.00% | 1,212,700 | 0.29% |
| China Construction Bank Corporation - China Universal CSI Guoxin Central-SOEs Shareholder Return ETF | New addition | 0 | 0.00% | 1,071,900 | 0.26% |
| Li Shuyuan | Exit | 0 | 0.00% | 811,500 | 0.20% |
| Zhang Mingrong | Exit | 0 | 0.00% | 0 | 0.00% |
| Lv Shaowen | Exit | 0 | 0.00% | 0 | 0.00% |
(2) Total Preference Shareholders and the Shareholding by the Top 10 Preference ShareholdersInapplicable
(3) Block Diagram of the Ownership and Control Relations between the Company and the Actual ControllerBlock 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
InapplicableIII. Significant Events
1. Repurchase some domestically listed foreign shares (B Shares)
At the 11th Meeting of the 10th Board of Directors and the 2022 Annual General Meeting, the Company approved the Programon the Repurchase of Some Domestically Listed Foreign Shares (B Shares), and subsequently disclosed the repurchase report and aseries of progress announcements in accordance with relevant regulations. As of December 31, 2023, the Company has cumulativelyrepurchased 9,355,763 shares of B shares through a special repurchase securities account through centralized bidding, with a totalamount paid of HKD 70,401,771.17 (excluding transaction fees). For details, please refer to the relevant progress announcementsdisclosed by the Company on CNINF.
2. Change of business scope and revision of the Articles of Association
After deliberation and approval by the 13th Meeting of the 10th Board of Directors and the 1st Extraordinary General Meeting in2023, the Company has decided to expand its business scope, adjust the standardized expression of the existing business scope, andrevise the corresponding provisions of the Articles of Association based on the changed business scope. For details, please refer to theAnnouncement on the Resolutions of the 13th Meeting of the 10th Board of Directors 2023-025, Announcement on Changing theBusiness Scope and Amending the Articles of Association 2023-027, and Announcement on Resolutions of the 1st ExtraordinaryGeneral Meeting 2023-031, which were disclosed by the Company on May 16, 2023 and June 1, 2023 on CNINF.
3. Capital increase to wholly-owned subsidiaries
At the 14th Meeting of the 10th Board of Directors, the Company approved the Proposal on Capital Increase to Wholly-ownedSubsidiary Shenzhen FIYTA Precision Technology Co., Ltd., and decided to increase the capital of its wholly-owned subsidiaryShenzhen FIYTA Precision Technology Co., Ltd. by RMB 80 million. For details, please refer to the Announcement on CapitalIncrease to Wholly-owned Subsidiary Shenzhen FIYTA Precision Technology Co., Ltd. 2023-047 and Announcement on Completionof Industrial and Commercial Change Registration for Capital Increase of Wholly-owned Subsidiary 2023-059 disclosed by theCompany on August 23, 2023 and December 1, 2023 on CNINF.
FIYTA Precision Technology Co., Ltd.
Board of DirectorsMarch 14, 2024