飞亚达(000026)_公司公告_飞亚达B：2024年年度报告(英文版)_公司公告

FIYTAPrecisionTechnologyCo.,Ltd.

2024AnnualReport

March2025

2024AnnualReport

Section1Importantnotes,contentsanddefinitions

TheBoardofDirectors,BoardofSupervisors,directors,supervisorsandseniormanagementofFIYTAPrecisionTechnologyCo.,Ltd.undertakethattheinformationpresentedinthereportistrue,accurateandcompleteanddoesnotcontainfalserecords,misrepresentationsormajoromissionsandbearindividualandjointlegalliability.

ZhangXuhua,thepersoninchargeoftheCompany,SongYaoming,theCFO,andTianHui,theFinancialManager(AccountingSupervisor)declaretoensurethatthefinancialcontentintheannualreportistruthful,accurate,andcomplete.

Alldirectorshaveattendedtheboardmeetingtoreviewthisreport.

Theforward-lookingdescriptionssuchasfutureplansanddevelopmentstrategiesincludedinthisannualreportdonotconstitutetheCompany'ssubstantivecommitmentstoinvestors.Investorsareadvisedtopayattentiontoinvestmentrisks.

TheCompanyhasdescribedtheexistingmacroeconomicrisks,operationalrisksandotherrisksindetailinthisreport.PleaserefertothesectiononthefuturedevelopmentoftheCompanyandthecountermeasuresinSection3Managementdiscussionandanalysis.

TheprofitdistributionplanreviewedandapprovedbytheBoardof

DirectorsoftheCompanyisasfollows:basedonthetotalsharecapitalontheequityregistrationdatewhentheprofitdistributionplanisimplemented,cashdividendsofRMB4.00(includingtax)willbedistributedtoallshareholdersforevery10shares,withoutbonusshare(includingtax),andsurplusfundswillnotbeconvertedintoadditionalcapital.

ThisreportispreparedinbothChineseandEnglish.Incaseofanyambiguity,theChineseversionshallprevail.

TableofContents

Section1Importantnotes,contentsanddefinitions ...... 2

Section2Companyprofileandkeyfinancialindicators ...... 7

Section3Managementdiscussionandanalysis ...... 11

Section4Corporategovernance ...... 29

Section5Environmentalandsocialresponsibility ...... 56

Section6Significantevents ...... 58

Section7Changesinsharesandshareholders ...... 67

Section8Relevantinformationaboutpreferredstock ...... 79

Section9Bond-relatedinformation ...... 79

Section10FinancialReporting ...... 80

ListofReferenceDocumentsI.Financialstatementscontainingthesignaturesandsealsofthelegalrepresentative,thechiefaccountantandtheaccountantincharge.II.Theoriginalauditreportbearingthesealoftheaccountingfirmandthesignatureandsealofthecertifiedpublicaccountant.III.Theoriginalsofallthecompany'sdocumentsandannouncementspubliclydisclosedduringthereportingperiod.

Interpretations

Definitions

Definitions	refersto	Description
TheCompany,Company,FIYTA	refersto	FIYTAPrecisionTechnologyCo.,Ltd.
AVIC	refersto	AviationIndustryCorporationofChina,LTD.
AVICINNO	refersto	AVICINNOCo.,Ltd.
AVICINTLholding	refersto	AVICInternationalHoldingLimited
AVICFinance	refersto	AVICFinanceCo.,Ltd.
PhaseIIrestrictedstockincentiveplan	refersto	2018A-SharesRestrictedStockIncentivePlan(PhaseII)
Currentreportingperiod,reportingperiod	refersto	January1,2024toDecember31,2024

Section2Companyprofileandkeyfinancialindicators

I.CompanyInformation

Abbreviation

Abbreviation	FIYTA,FIYTAB	Stockcode	000026,200026
Stocknamebeforechange(ifany)	None
Stocklistingstockexchange	ShenzhenStockExchange
Chinesename	飞亚达精密科技股份有限公司
AbbreviationinChinese	飞亚达公司
ForeignnameoftheCompany(ifany)	FIYTAPrecisionTechnologyCo.,Ltd.
ForeignshortnameoftheCompany(ifany)	FIYTA
Legalrepresentative	ZhangXuhua
Registeredaddress	FiytaTechnologyBuilding,GaoxinSouth1stRoad,NanshanDistrict,Shenzhen
Postalcodeofregisteredaddress	518057
HistoricalchangeofCOOEC'sregisteredaddress	OnJanuary30,1997,theregisteredaddressoftheCompanywaschangedfrom"Building6,Zhonghangyuan,ShennanMiddleRoad,Shenzhen"to"Building6,Zhonghangyuan,ShennanMiddleRoad,FutianDistrict,Shenzhen";OnApril5,2000,theregisteredaddresswaschangedto"FIYTABuilding,No.163,ZhenhuaRoad,FutianDistrict,Shenzhen";OnFebruary20,2004,theregisteredaddresswaschangedto"FIYTATechnologyBuilding,GaoxinSouth1stRoad,NanshanDistrict,Shenzhen".
Officeaddress	Floor20,FiytaTechnologyBuilding,GaoxinSouth1stRoad,NanshanDistrict,Shenzhen
Postalcodeofbusinessaddress	518057
COOECWebsite	www.fiytagroup.com
E-mail	investor@fiyta.com.cn

2.Contactpersonandcontactinformation

	SecretaryoftheBoardofDirectors	Securitiesaffairsrepresentative
Name	SongYaoming	XiongYaojia
Contactaddress	Floor20,FiytaTechnologyBuilding,GaoxinSouth1stRoad,NanshanDistrict,Shenzhen	18thFloor,FiytaTechnologyBuilding,GaoxinSouth1stRoad,NanshanDistrict,Shenzhen
TEL	0755－86013669	0755－86013669
Fax	0755－83348369	0755－83348369
E-mail	investor@fiyta.com.cn	investor@fiyta.com.cn

III.Informationdisclosureandstoragelocation

Websiteofthestockexchangewhere

http://www.szse.cn

COOECdisclosesitsannualreport

COOECdisclosesitsannualreport
NameandwebsiteofthemediawhereFiytadisclosesitsannualreport	SecuritiesTimes,HongKongCommercialDailyandCNINFO(www.cninfo.com.cn)
Storagelocationofannualreports	CorporatePlanningWorkingCapitalDepartment

IV.Registrationchanges

UnifiedSocialCreditCode	91440300192189783K
ChangesinprimarybusinesssincethelistingoftheCompany(ifany)	Nochange
Changesinpreviouscontrollingshareholders(ifany)	Nochange

V.Otherrelevantinformation

AccountingfirmengagedbytheCompany

Nameofaccountingfirm	RSMChinaCPALLP(SpecialGeneralPartnership)
Officeaddressofaccountingfirm	1001-1to1001-26,10F,Building1,No.22,FuchengmenwaiStreet,XichengDistrict,Beijing
Signingaccountants	CaiRuxiao,ZhengChaomin,GeHua

SponsorinstitutionengagedbytheCompanytoperformcontinuoussupervisionduringthereportingperiodNotapplicableFinancialconsultantengagedbytheCompanytoperformcontinuoussupervisionduringthereportingperiodNotapplicable

VI.Mainaccountingdataandfinancialindicators

DoestheCompanyneedtoretrospectivelyadjustorrestatetheaccountingdatainpreviousyears?No

	2024	2023	IncreaseordecreaseYoY	2022
Operatingincome(yuan)	3,940,530,934.07	4,569,690,002.99	-13.77%	4,354,096,880.36
Netprofitattributabletoshareholdersofthelistedcompany(yuan)	220,350,184.99	333,178,102.37	-33.86%	266,681,451.84
Netprofitafterdeductingnon-recurringprofitsandlossesattributabletoshareholdersofthelistedcompany(yuan)	208,728,288.68	316,806,208.13	-34.11%	249,791,455.73
Netcashflowsfromoperatingactivities(yuan)	536,730,960.29	632,401,487.98	-15.13%	476,228,776.52
Basicearningspershare(yuan/share)	0.5385	0.8082	-33.37%	0.6398
Dilutedearningsper	0.5378	0.8075	-33.40%	0.6398

share(yuan/share)

share(yuan/share)
Returnonweightedaveragenetassets	6.55%	10.28%	-3.73%	8.68%
	Asattheendof2024	Asattheendof2023	Increaseordecreaseattheendofthecurrentyearcomparedwiththeendofthepreviousyear	Asattheendof2022
Totalassets(yuan)	4,007,690,717.02	4,204,260,897.08	-4.68%	4,117,143,911.99
Netassetsattributabletoshareholdersofthelistedcompany(yuan)	3,391,843,200.61	3,333,805,752.19	1.74%	3,136,423,492.15

TheCompany'snetprofitbeforeandafterdeductingnon-recurringprofitandlossinthelastthreeaccountingyears,whicheverislower,isnegative,andtheauditreportforthelatestyearshowsthattheCompany'sabilitytocontinueasagoingconcernisuncertainNoThelowerofnetprofitbeforeandafterdeductingnon-recurringprofitandloss(whicheverislower)isnegativeNoVII.Differencesinaccountingdataunderdomesticandoverseasaccountingstandards

1.DifferencesinnetprofitandnetassetsinthefinancialreportsdisclosedinaccordancewithinternationalaccountingstandardsandChineseaccountingstandardsNotapplicable

2.DifferencesinnetprofitandnetassetsinthefinancialreportsdisclosedinaccordancewithoverseasaccountingstandardsandChineseaccountingstandards

Notapplicable

VIII.Mainfinancialindicatorsbyquarter

Unit:yuan

	Q1	Q2	Q3	Q4
Operatingrevenue	1,065,150,876.00	1,011,247,035.32	963,368,988.81	900,764,033.94
Netprofitattributabletoshareholdersofthelistedcompany	75,499,096.30	71,639,386.04	50,484,466.22	22,727,236.43
Netprofitafterdeductingnon-recurringprofitsandlossesattributabletoshareholdersofthelistedcompany	69,755,955.88	70,689,265.93	50,362,069.34	17,920,997.53
Netcashflowsfromoperatingactivities	-964,281.20	137,495,077.72	180,837,164.86	219,362,998.91

Whethertheabovefinancialindicatorsortheirsumaresignificantlydifferentfromthefinancialindicatorsdisclosedinthequarterlyreportandsemi-annualreportoftheCompanyNo

IX.Non-recurringgainsandlossesitemsandamounts

Unit:yuan

Item

Item	Amountin2024	Amountin2023	Amountin2022	Notes
Profitorlossfromdisposalofnon-currentassets(includingthewriting-offpartforwhichtheassetimpairmentprovisionismade)	2,367,816.60	685,868.57	91,925.06
Governmentgrantsincludedinthecurrentprofitorloss(exceptforgovernmentgrantscloselyrelatedwiththenormalbusinessofCOOEC,obtainedaccordingtoestablishedcriteriaandinaccordancewiththenationalpoliciesandprovisionsandthosecontinuouslyaffectingtheprofitandlossofFIYTA)	5,480,540.76	8,665,506.85	18,648,210.06
Profitorlossonfairvaluechangesarisingfromtheholdingoffinancialassetsandfinancialliabilitiesbynon-financialenterprisesandtheprofitorlossarisingfromthedisposaloffinancialassetsandliabilities,exceptforeffectivehedgingoperationsassociatedwithCOOEC'snormaloperations	524,315.57	0.00	0.00	Itwasmainlyduetotheincreaseinincomefromtimedeposits.
Reversalofreceivablestestedforimpairmentseparately,provisionforimpairment	3,753,262.84	7,570,975.54	4,389,902.44
Non-operatingrevenueandexpensesotherthantheabove-mentioneditems	2,834,587.38	3,910,736.70	-1,064,064.23
Less:incometaxeffects	3,338,626.84	4,461,193.42	5,175,977.22
Total	11,621,896.31	16,371,894.24	16,889,996.11	--

Specificcircumstancesofotheritemsthatmeetthedefinitionofnon-recurringgainsandlosses:

NotapplicableDescriptionofthedefinitionofnon-recurringprofitandlossitemslistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic-Non-recurringProfitorLossasrecurringprofitandlossitemsNotapplicable

Section3Managementdiscussionandanalysis

I.Industrystatusduringthereportingperiod

In2024,accordingtothedataoftheNationalBureauofStatistics,thetotalretailsalesofdomesticconsumergoodsincreasedby3.5%year-on-year,thetotalconsumermarketgrewsteadilybutdifferentiatedsignificantly,andthetraditionalwatchconsumermarketfacedmultiplepressuressuchasdemandcontractionandintensifiedcompetition.

Intermsofconsumptionstructure,luxurygoodsandoptionalconsumptioncontinuetobeunderpressure,whileexperientialconsumptionsuchashealthandtechnologyisontherise.Bain'sreportindicatedthatthesalesofpersonalluxurygoodsinmainlandChinafellby18%-20%year-on-year,amongwhichthewatchcategorywassignificantlyaffectedbyconsumptionoutflow(theproportionofoverseasconsumptionroseto40%)andpreferenceshift.DatafromtheFederationoftheSwissWatchIndustryshowedthattheexportvalueofSwisswatchestomainlandChinafellby25.8%year-on-yearthroughouttheyear,andsalesofwatchesinvariouspricerangesdeclinedtovaryingdegrees;Meanwhile,thePwCreportrevealedthatthedemandforsportsequipmentandhealthmonitoringequipmentisrising,andIDCdatashowedthattheshipmentsofwrist-worndevices(includingsmartwatchesandbracelets)inChinaincreasedby20.1%YoYinthefirstthreequartersofthisyear,rankingfirstintheworld.

Intermsofconsumptionchannels,fragmentationofofflinechannelshasintensified,withdiscountstoresandimmersiveexperiencestoresbecomingthemaingrowthdrivers,whilecustomertraffictotraditionaldepartmentstoresandspecialtystoreshasdeclined;Thepenetrationrateofonlinechannelshasstabilized,andtheproportionofrefinedoperationmodessuchaslivestreame-commerceandmemberprivatedomainshasincreased.

Intermsofconsumptionpreferences,youngconsumersarelessloyaltobrandsandtheyaremoreconcernedaboutcost-effectivenessandconsumptionexperience.Proactivehealthcare,technologicalinteraction,dedicatedservicesandothermodelsaremorepopular.

Inthiscontext,theCompanywillinsistonitsownbrandpositioning,strengthenbrandbuildinganddifferentiation,andenhancethecorecompetitivenessoftraditionalwatchbusiness;consolidatechanneloperationmanagement,optimizestorestructureandformmode,andactivelydeployhigh-qualityandincrementalchannels.Byemphasizingthecustomerorientation,theCompanywillincreaseAIandothertechnicalempowermentanddigitalapplications,andcontinuetodeepencustomerresearch;anchorthetransformationandupgradinggoals,enhancethecoretechnologycapabilitiesofprecisiontechnologyandsmartwearable,andactivelypromotetheexpansionofrelatednewindustries,soastocopewithmarketchanges.

II.MainbusinessoftheCompanyduringthereportingperiod

TheCompanywasfoundedanddevelopedfromaviationprecisiontechnologyandmaterialtechnology,withthemissionof"inheritingthe'spiritofservingthecountrybyaviation'andcreatingaqualitylife".Overtheyears,ithasdeeplycultivatedthewatchindustry,formedacorebusinesslayoutcoveringitsownbrandofwatchesandcomprehensiveservicesofluxurywatches,topromoteeachother,andiscommittedtobecomingaleaderinChina'swatchindustry,spreadingaviationcultureandChineseculture,andactivelyinvestingstrategicemergingindustriessuchasprecisiontechnologyandsmartwear.

Withitscontinuousaccumulationinprofessionalwatchmakingcapacitybuildingandbrandoperationmanagement,theCompanyhasanumberofwatchbrandssuchas"FIYTA","EmileChouriet","Beijing","Jeep"and"ADASHER",coveringmediumandhigh-end,mass,fashionandothermarketsegments.Amongthem,"FIYTA,"acorebrand,ispositionedas"ahigh-qualityChinesewatchbrandfeaturingaerospacewatches".Bycontinuouslystrengtheningthe

uniqueIPofaerospaceandproductquality,theCompanyincreasestheresearchanddevelopmentofmovementsandkeycomponents,integratesaerospacecharacteristictechnologiesandmaterialapplications,andcreatesdistinctivefeatures,therebypromotingthedevelopmentofthebrandtowards"youthfulness,high-endandmainstream".Inordertoseizetheopportunitiesinthedomesticluxurywatchmarket,theCompanyhasestablishedacomprehensiveservicechannelfor"Harmony"luxurywatches,specializinginthedistributionandserviceofworldluxurywatches,andhasestablishedclosecooperativerelationswithmanyworldhigh-endandmainstreambrands.Bypositioning"Harmony"asa"fullserviceproviderandbrandoperationplatformforluxurywatches",theCompanycontinuestosolidlypromotetheimprovementofoperationcapabilitiesandcustomerservicecapabilities.Relyingontheoperationexperienceofleadinginternationalbrands,"Harmony"hasbecomeatopprofessionalhigh-endchaincommercialbrandofluxurywatchesinChina,helpingimprovetheoperationofownbrands.Inrecentyears,underthedevelopmentprincipleof"sharedtechnology,sharedindustryroots,andalignedvalue",theCompanyhasexpandedintostrategicemergingindustriessuchasprecisiontechnologyandsmartwearablebyvirtueofprecisiontechnologystrengthandindustrialaccumulation,andwillcontinuetoactivelyincreaseresourceinvestment,tocultivateandgrowthetwostrategicindustries.

IIIAnalysisofcorecompetitiveness

(I)BrandoperationandmanagementcapabilitiesofthewholeindustrychainTheCompanypossessesintegratedcapabilitiesacrosstheentireindustrychain,includingresearchanddevelopment,design,manufacturing,sales,andservice.Throughresourceintegrationandbusinesssynergy,itcontinuouslystrengthensthedifferentiationandcompetitivenessofitscoreproprietarybrand"FIYTA".Duringthereportingperiod,"FIYTA"brandwonmultipleawardsincludingthePlatinumandGoldawardsatthe2024MUSEDesignAwards,creditedtoitsinnovativeproductlineup.Withthehigh-qualityoperationandmanagementofthee-commerceplatform,theCompanyhaswonanumberofawardssuchas"2023TmallFashionAccessoriesNewTrendTrackAward","2023JDTrendNewProductAward","TikTokE-commerceAnnualBrandinApparelandMen'sComprehensiveIndustryin2023",and"KuaishouE-commerceAnnualExcellentMerchantinJewelryandJadeIndustryin2024".Theseachievementshavesignificantlyboostedthebrand'sinfluenceandvisibility.

(II)Omni-channelrefinedoperationandmanagementcapabilitiesTheCompanyhasrefinedchanneloperationandmanagementcapabilities.Throughhigh-qualitydevelopmentofofflinechannelsandsteadypromotionofonlineandofflinechannelintegration,thechannelstructurehasbeencontinuouslyoptimized,andtheoperationefficiencyhasbeensteadilyimproved,basicallyformingathree-dimensionalchannelnetworkcoveringonlineandofflinechannelsacrossChinaandabroad.Duringthereportingperiod,the"FIYTA"brandwonthe"AmazonOverseasRisingStarAwardin2024"byvirtueofthesmoothdevelopmentofoverseasplatformchannels,andHarmonyCompany,relyingonitsexcellentchanneloperationandcomprehensivestrength,wasawardedthe"TopTenValue-addedEnterprisesintheWholesaleandRetailIndustryinNanshanDistrictin2023".

(III)CoretechnicalcapabilitiesofprecisiontechnologyAsanationaltechnologyinnovationdemonstrationenterprise,anationalenterprisetechnologycenterandanationalindustrialdesigncenter,theCompanyhaskeycoretechnologiesandhigh-endwatchmakingskillscoveringwatchmovement,partsmanufacturing,aerospacewatchdevelopmentandotheraspects.RelyingontheR&DandproductionplatformsinShenzhenandSwitzerland,theCompanyfocusesonkeytechnologyresearch,andcontinuestopromotetechnologicalbreakthroughsinmovementandtheapplicationofscientificresearchresults.Duringthereportingperiod,theCompany'sself-developedautomaticmechanicalmovement"Zhaixing"becamethefirstfemalespacewatchmovementcertifiedbytheFrenchBesan?onObservatory.TheCompanywonthe"SecondPrizeof

ScienceandTechnologyProgressAwardofChinaNationalLightIndustryCouncil"forleadingthecompletionofISO14368-4:2020,thefirstinternationalstandardinthefieldofwatchesproposedandformulatedbyChina.Withoutstandingachievementsinstandarddevelopmentandstandardsystemconstruction,itwasawardedthe"ShenzhenStandardInnovationDemonstrationBase".

(IV)EfficientandempowereddigitaloperationandmanagementcapabilitiesTheCompanyhasadiversifieddigitalretailsystemanddigitalmanagementplatformthatempowersbusinessesandemployees,andpromotesbusinesscollaborationandoperationalefficiencybycontinuouslydeepeningdigitalapplicationsinmanagementandmanufacturing,sales,serviceandotherlinks.Duringthereportingperiod,theCompanycarriedoutin-depthdigitalconstructionrelatedworksuchasdigitalretailsystemoptimization,upgradingandconstructionofoperationmanagementsystem,andexplorationofintelligentmanufacturingmode,constantlyfacilitatingtheCompany'sdigitaltransformation.(V)ConstructioncapacityofprofessionaltalentteamBasedontheconceptof"valuecreation",theCompanycontinuouslyhasinvestedintheconstructionoftalentteam,andhasestablishedasoundtalentselection,trainingandpromotionsystemandbuiltaprofessionalandstabletalentteam.Inaddition,theCompanyhascultivatedanumberofoutstandingrepresentativesintheindustryincorefieldssuchasdesign,R&Dandmanufacturingbybuildinganinnovativeincentivemechanismanddevelopingdiversifiedtalentincentivemeasures.

IV.Analysisofmainbusiness

1.OverviewIn2024,theCompany,adheringtoseekingprogresswhilemaintainingstability,strengthenedandexpandedthemainbusinessofwatches,toimprovecorecompetitiveness,andfocusedonscientificandtechnologicalinnovation,acceleratedtransformationandupgrading,enhancedcorefunctions,deepenedqualityandefficiencyimprovement,preventedassetrisks,identifiedoperationcounterattackpoints,andcarriedoutvariousoperationandmanagementworkinanorderlymanner.Duringthereportingperiod,intheenvironmentofcontinuouspressureonthewatchconsumermarket,theCompanyachievedoperatingincomeofRMB3,940.53millionyuan,aYoYdecreaseof13.77%,withthetotalprofitofRMB286.11millionyuan,down34.53%YoY.TheCompanypaidcloseattentiontoleanoperationandriskpreventionandcontrol.Attheendoftheperiod,theasset-liabilityratiowas15.37%,andthenetcashflowfrombusinessactivitieswasRMB537millionyuan,indicatinghighoperatingefficiencyandcontrollableoperatingrisks.Moreover,theCompanyconsolidatedconfidenceindevelopmentandattachedimportancetoshareholderreturns.Ithasimplementedthecashdividendplanin2023andthedomesticlistedforeignshares(Bshares)sharerepurchaseandcancellationplan(PhaseIV),andhasformulatedacashdividendplanin2024,topaycashdividendsof4.00yuan(taxincluded)toallshareholdersforevery10shares.

Duringthereportingperiod,theCompany'smainbusinessinitiativesareasfollows:

(I)FirmlypromotetheimplementationofbrandpositioningupgradestrategyandspreadaviationandChinesecultureDuringthereportingperiod,theaerospaceproductmatrixwasoptimizedcontinuouslybypositioning"FIYTA"brandasa"high-qualityChinesewatchbrandfeaturingaerospacewatch",andathree-dimensionalproductlayoutwasimplementedincombinationwithaerospacecharacteristicIP.TheintegrationwithintangibleculturalheritagewasstrengthenedbyincorporatingtraditionalintangibleculturalheritagecraftssuchasSongporcelainandmother-of-pearlinlayintoproductdesign,soastoshowcaseChina'sexcellenttraditionalculture.TheIPcooperationwith"Y-20TransportAircraft",CNNCandother"PillarsofaGreatPower"wasdeepened,andthebrandwasfrequentlyexposed

throughMilanFashionWeek,cooperationwithXiaZhiguang,"Shenzhou-18","Shenzhou-19",ZhuhaiInternationalAviation&AerospaceExhibition,Nasdaqlargescreendisplayandotherbrandevents.

(II)ContinuetopromotetheoptimizationofchannelstructureandimprovetotheefficiencyofoperationandmanagementDuringthereportingperiod,forthe"FIYTA"brand,thefocuswasonbuildingofflinecorestores,andtakingaerospacethemestoresasthestartingpoint,toactivelydeployhigh-qualitychannelssuchasmainstreamshoppingmalls,andpromotethetransformationofbusinessmodels.Theefficiencyofself-ownedstoresandcustomerwasimprovedthroughthe"LittleRedBook+TikTokStoreLivestream+LocalLife"model.Bystrengtheningthedevelopmentofnewproductsonlineandtheconstructionofself-operatedlivestreammatrix,duringthe"618"period,thee-commerceGMVachievedcontrariangrowth,rankingfirstintheturnoverofdomesticwatchesinthewholenetwork.Adheringtotheintegrationofproductandsales,theCompanycarriedoutglobalmarketing,andmadethepopular"smallgoldwatch"entertheTOPlistofmajorplatforms,helpingthebrandtosignificantlyincreaseitsshareinmainstreame-commerceplatforms.Meanwhile,theCompanyactivelyexpandedoverseaschannelsandduty-freechannels,todevelopincrementalmarkets.

"Harmony"activelyexpandedcooperationwithmediumandhigh-endbrands,developedofflinechannelswithhighquality,andsteadilypromotedtheintegrateddevelopmentofonlineandofflinechannels;Deepenandrefineexcellentoperationinanall-roundway,andsystematicallyimproveoperationalefficiencyfromonline,offline,stores,brands,members,servicesandotherdimensions.

(III)Continuetoincreaseinvestmentinscientificandtechnologicalinnovationandstrengthenthestrengthofprecisiontechnology

Duringthereportingperiod,theCompany'sself-developedautomaticmechanicalmovement"Zhaixin"becamethefirstfemaleaerospacewatchmovementcertifiedbytheFrenchBesan?onObservatory.TheCompanyactivelypromotedthelarge-scalecommercialuseoftheself-developedmovement,theproductapplicationofhigh-levelmechanicalmovementssuchasthetourbillon,thedevelopmentofkeypartssuchasclampsandhairsprings,andthedevelopmentandapplicationofaerospacematerialsandprecisiontimingtechnology.

(IV)Continuetopromotedigitaltransformationanddeependigitalplatformapplication

Duringthereportingperiod,theCompanycontinuedtocarryoutdigitaloperations,improvinganditeratingthedigitalretailsystem;Focusingoncustomerneedsandprofiles,optimizedthememberlifecyclemodeltoenhancecoremetricssuchasconversionofpotentialcustomersandretentionofexistingcustomers,ensuringcontinuousimprovement.Deepeningtheprivatedomainoperations,leveragedmini-programstocultivateprivatedomaintrafficanddevelopactivitieslikeprivatedomaingrouppurchases.

(V)Continuetopromotetheexplorationofnewbusinessesandactivelycultivatestrategicemergingindustries

Duringthereportingperiod,theCompanystrengtheneditsprecisiontechnologybusiness,enhancingitstechnicalcapabilitiestomeetthedemandsofcomplexandhigh-precisionproducts,drivingtheexpansionofnewcustomers.Thesmartwearablebusinesscontinuedtoadvancewithupgradesinproductandtechnologicalcapabilities.Therewasastrongemphasisonenhancingbothsoftwareandhardwaretechnologies,alongwithnewproductdevelopment.Underthe"Jeep"brand,newproductssuchasthecurvedscreensquaresmartwatchintegratingAItechnologywerelaunched,achievingtheincreasedrevenueduringthereportingperiod.YoYchangesinmainfinancialdataBalancesheetitems

Items

Items	Endingbalance	Beginningbalance	Change	Reasonforchange
Notesreceivable	29,611,600.60	18,268,972.37	62.09%	Itwasmainlyduetotheincreaseinbill

settlementcustomers.

				settlementcustomers.
Othercurrentassets	98,007,925.22	72,249,391.81	35.65%	Itwasmainlyduetotheincreaseintimedeposittransactions.
Othernon-currentassets	3,792,253.84	9,434,627.17	-59.80%	Itwasmainlyduetothedecreaseinprepaidstoredecorationpayments.
Short-termborrowings	124,087,754.51	250,187,763.87	-50.40%	Itwasmainlyduetorepaymentofbankborrowings.
Accountspayable	115,532,921.57	173,825,907.71	-33.54%	Itwasmainlyduetothedecreaseinthepurchaseofluxurywatches.
Treasuryshare	12,815,556.81	78,645,532.23	-83.70%	ItwasmainlyduetothecancellationofrepurchasedBshares.

Profitstatementitemsfromthebeginningoftheyeartotheendofthereportingperiod

Items	Amountinthecurrentperiod	Amountinthepreviousperiod	Change	Reasonforchange
Otherincome	7,492,642.33	11,435,373.78	-34.48%	Itwasmainlyduetothedecreaseingovernmentsubsidiesreceived.
Investmentincome	-431,254.89	-5,819,479.60	92.59%	Itwasmainlyduetothelossesreducedbyshareholdingenterprises.
Creditimpairmentloss	266,485.96	6,827,575.82	-96.10%	Thisismainlyduetoasignificantreversalofasingleitemduringthesameperiod.
Lossesfromassetimpairment	-19,289,865.31	571,980.37	-3472.47%	Itwasmainlyduetotheincreaseintheprovisionforimpairmentofluxurywatchbusiness.
(LV)Incomesfromdisposalofassets	2,367,816.60	685,868.57	245.23%	Itwasmainlyduetotheimpactofdisposingofcertainproperties.

Itemsinthestatementofcashflowsfromthebeginningoftheyeartotheendofthereportingperiod

Items	Amountinthecurrentperiod	Amountinthepreviousperiod	Change	Reasonforchange
Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets	4,848,874.32	1,278,284.57	279.33%	Itwasmainlyduetotheimpactofdisposingofcertainproperties.
Cashreceivedfromotherinvestingactivities	201,839,677.57	0.00	-	Itwasmainlyduetotheincreaseintimedeposits.
Cashpaidforotherinvestingactivities	231,179,882.49	0.00	-	Itwasmainlyduetotheincreaseintimedeposits.
Cashreceivedfromborrowings	323,957,187.86	250,000,000.00	29.58%	Itwasmainlyduetotheincreaseintheamountofborrowingsobtainedinthisyearduetochangesinborrowingmethods.
Cashpaidfordebtrepayments	450,000,000.00	290,000,000.00	55.17%	Itwasmainlyduetotheincreaseintheamountofborrowingstoberepaidinthethisyearduetochangesinborrowingmethods.
Cashpaidfordistributionofdividendsandprofitsorpaymentofinterests	168,545,613.69	114,106,711.75	47.71%	Itwasmainlyduetotheincreaseincashdividends.

Cashpaidforotherfinancingactivities

116,757,093.91

198,056,975.77

-41.05%

Itwasmainlyduetothedecreaseinsharerepurchaseexpenses.

2.Revenueandcost

(1)Compositionofoperatingincome

Unit:yuan

	2024		2023		YoYincrease/decrease
	Amount	Proportioninrevenue	Amount	Proportioninrevenue	YoYincrease/decrease
Totaloperatingincome	3,940,530,934.07	100%	4,569,690,002.99	100%	-13.77%
Byindustry
Watchbusiness	3,656,306,133.74	92.79%	4,267,371,133.82	93.38%	-14.32%
Precisiontechnologybusiness	134,469,811.50	3.41%	135,950,405.45	2.98%	-1.09%
Leasingbusiness	138,069,112.39	3.50%	150,361,811.22	3.29%	-8.18%
Others	11,685,876.44	0.30%	16,006,652.50	0.35%	-26.99%
Byproduct
Watchbrandbusiness	721,623,074.27	18.31%	797,083,010.50	17.44%	-9.47%
Fullservicebusinessofluxurywatches	2,934,683,059.47	74.48%	3,470,288,123.32	75.94%	-15.43%
Precisiontechnologybusiness	134,469,811.50	3.41%	135,950,405.45	2.98%	-1.09%
Leasingbusiness	138,069,112.39	3.50%	150,361,811.22	3.29%	-8.18%
Others	11,685,876.44	0.30%	16,006,652.50	0.35%	-26.99%
Byregion
SouthChina	1,857,820,951.58	47.15%	2,111,088,618.01	46.20%	-12.00%
NorthwestChina	546,718,719.91	13.87%	704,042,804.95	15.41%	-22.35%
NorthChina	122,281,678.29	3.10%	217,315,524.00	4.76%	-43.73%
EastChina	492,238,757.53	12.49%	570,830,728.85	12.49%	-13.77%
NortheastChina	341,939,729.91	8.68%	357,656,639.08	7.83%	-4.39%
SouthwestChina	579,531,096.85	14.71%	608,755,688.10	13.31%	-4.80%
Distributionmode
Directsales	3,794,632,582.06	96.30%	4,429,357,639.21	96.93%	-14.33%
Distribution	145,898,352.01	3.70%	140,332,363.78	3.07%	3.97%

(2)Industries,products,regionsandsalesmodelsaccountingformorethan10%oftheCompany'soperatingincomeoroperatingprofit

Unit:yuan

Operatingrevenue

	Operatingrevenue	Operatingcosts	Grossprofitrate	Increaseordecreaseinrevenuecomparedwiththesameperiodlastyear	Increase/decreaseinoperatingcostscomparedwiththesameperiodlastyear	Increase/decreaseingrossprofitratecomparedwiththesameperiodlastyear
Byindustry
Watchbusiness	3,656,306,133.74	2,317,289,192.84	36.62%	-14.32%	-15.60%	0.96%
Leasingbusiness	138,069,112.39	43,245,383.91	68.68%	-8.18%	-2.54%	-1.81%
Byproduct
Watchbrandbusiness	721,623,074.27	236,520,324.15	67.22%	-9.47%	-10.33%	0.32%
Fullservicebusinessofluxurywatches	2,934,683,059.47	2,080,768,868.69	29.10%	-15.43%	-16.16%	0.61%
Leasingbusiness	138,069,112.39	43,245,383.91	68.68%	-8.18%	-2.54%	-1.81%
Byregion
SouthChina	1,857,820,951.58	1,150,015,490.66	38.10%	-12.00%	-13.99%	1.43%
NorthwestChina	546,718,719.91	340,604,264.11	37.70%	-22.35%	-23.95%	1.32%
NorthChina	122,281,678.29	67,869,248.79	44.50%	-43.73%	-48.47%	5.10%
EastChina	492,238,757.53	320,993,514.84	34.79%	-13.77%	-12.74%	-0.77%
NortheastChina	341,939,729.91	228,825,624.89	33.08%	-4.39%	-4.76%	0.26%
SouthwestChina	579,531,096.85	367,889,791.14	36.52%	-4.80%	-3.38%	-0.93%
Distributionmode
Directsales	3,794,632,582.06	2,406,620,203.55	36.58%	-14.33%	-15.51%	0.89%
Distribution	145,898,352.01	69,577,730.88	52.31%	3.97%	21.98%	-7.04%

Ifthestatisticalcaliberofthecompany'smainbusinessdataisadjustedduringthereportingperiod,thecompany'slatestperiodmainbusinessdataadjustedaccordingtothecaliberattheendofthereportingperiodNotapplicable

(3)WhethertheCompany'sphysicalsalesrevenueisgreaterthanlaborrevenueYes

Industryclassification	Item	Unit	2024	2023	YoYincrease/decrease
Brandwatches	Salesvolume	Nos.	978,021	902,955	8.31%
	Productionvolume	Nos.	972,522	868,480	11.98%
	Inventory	Nos.	777,015	782,514	-0.70%

ReasonsfortheYoYchangeofmorethan30%inrelevantdataNotapplicable

(4)PerformanceofmajorsalescontractsandmajorprocurementcontractssignedbytheCompanyasofthereportingperiodNotapplicable

(5)CompositionofoperatingcostsIndustryandproductclassification

Unit:yuan

Industryclassification

Industryclassification	Item	2024		2023		YoYincrease/decrease
Industryclassification	Item	Amount	Proportioninoperatingcosts	Amount	Proportioninoperatingcosts	YoYincrease/decrease
Watchbusiness	Merchandiseprocurementcost	2,080,768,868.69	84.03%	2,481,853,312.97	85.42%	-16.16%
Watchbusiness	Rawmaterial	214,145,376.12	8.65%	239,031,937.74	8.23%	-10.41%

Unit:yuan

Productclassification	Item	2024		2023		YoYincrease/decrease
Productclassification	Item	Amount	Proportioninoperatingcosts	Amount	Proportioninoperatingcosts	YoYincrease/decrease
Fullservicebusinessofluxurywatches	Merchandiseprocurementcost	2,080,768,868.69	84.03%	2,481,853,312.97	85.42%	-16.16%
Watchbrandbusiness	Rawmaterial	214,145,376.12	8.65%	239,031,937.74	8.23%	-10.41%

(6)WhetherthescopeofconsolidationchangedduringthereportingperiodNo

(7)InformationaboutsignificantchangesoradjustmentsinCOOEC'sbusiness,productsorservicesduringthereportingperiodNotapplicable

(8)MajorsalescustomersandmajorsuppliersMajorsalescustomersofFIYTA

Totalsalesamountfromtopfivecustomers(yuan)	829,086,732.66
Proportionoftotalsalesamountfromtopfivecustomersintotalannualsales	21.04%
Proportionofsalesofrelatedpartiesinthesalesfromtopfivecustomerstothetotalannualsales	0.00%

Top5customersoftheCompany

No.

No.	Customername	Salesamount(yuan)	Proportionintotalannualsales
1	Firstplace	242,985,550.36	6.17%
2	Secondplace	169,435,204.94	4.30%
3	Thirdplace	160,738,418.61	4.08%
4	Fourthplace	133,662,363.38	3.39%
5	Fifthplace	122,265,195.37	3.10%
Total	--	829,086,732.66	21.04%

OtherinformationofmaincustomersNotapplicableMainsuppliers

Totalprocurementamountfromtopfivesuppliers(yuan)	1,916,849,035.55
Proportionofthetotalprocurementamountfromthetopfivesuppliersinthetotalannualprocurementamount	81.18%
Proportionoftheprocurementamountofrelatedpartiesintheprocurementamountfromtopfivesupplierstothetotalannualprocurementamount	0.00%

Informationoftop5suppliers

No.	Suppliername	Procurementamount(yuan)	Proportionintotalannualprocurement
1	Firstplace	964,836,795.24	40.86%
2	Secondplace	541,758,611.60	22.94%
3	Thirdplace	164,093,247.92	6.95%
4	Fourthplace	148,438,639.92	6.29%
5	Fifthplace	97,721,740.87	4.14%
Total	--	1,916,849,035.55	81.18%

OtherinformationofmainsuppliersNotapplicable

3.Expenses

Unit:yuan

	2024	2023	YoYincrease/decrease	Descriptionofsignificantchanges
Sellingexpenses	882,777,806.63	924,009,179.32	-4.46%	Notapplicable
Administrativeexpenses	183,277,930.17	205,359,277.24	-10.75%	Notapplicable
Financialexpenses	17,924,871.34	21,469,772.77	-16.51%	Notapplicable
Researchanddevelopmentexpenses	56,000,000.18	57,802,244.08	-3.12%	Notapplicable

4.R&Dinvestment

MainR&Dprojects

MainR&Dprojects	Projectpurpose	Projectprogress	Objectivestobeachieved	ExpectedimpactontheCompany'sfuturedevelopment
AseriesofnewproductswithFIYTAbrandcharacteristics	Toprovidethemarketwithinnovativeproductswithbrandcharacteristicsofaerospacethemeelements	Annualtaskscompleted	TodevelopmultipleseriesofnewproductswithFIYTAbrandcharacteristicsofaerospacetheme,andmarketthemasplanned	Provideinnovativeproducts
Developmentofinnovativestructures,materialsandprocessesfornewproducts	Toimprovetheperformanceandmarketcompetitivenessofnewproducts	Annualtaskscompleted	Tocarryoutstructuralinnovativedesign,newmaterialapplicationresearchandprocessinnovationaccordingtothedevelopmentrequirementsofaerospace-themednewproducts,soastoimproveproductperformanceandexpandfunctions	Toimprovetheperformanceandmarketcompetitivenessofnewproducts
Developmentofmechanicalwatchmovementswithdistinctivebrandfeatures	Toimprovetheperformanceandmarketcompetitivenessofnewproducts	Annualtaskscompleted	Tomeettheneedsofbranddifferentiationandproductinnovation,developmechanicalwatchmovementsandkeypartswithspecialfunctionsandindicationmethods,andrealizenewproductapplications	Toimprovetheperformanceandmarketcompetitivenessofnewproducts
Developmentofspecialwatchesformannedspaceflight	Toprovidespecialwatchesforthemannedspaceflight	Annualtaskscompleted	Todevelopanddeliverspecialwatchesaccordingtotherequirementsofmannedspacemissions	Toprovidespecialwatchesforthemannedspaceflight
Smartwatchproductswithfunctionssuchassportsandhealth,humanbodysignmonitoringandvariousdailyapplications	Toimprovetheperformanceandmarketcompetitivenessofnewproducts	Annualtaskscompleted	Tocarryouttheresearchanddevelopmentofcorefunctionsanddataanalysissolutionsofsmartwearableproducts,theresearchanddevelopmentoftechnicalsolutionscombiningmechanicalwatchesandsmartwatches,etc.,andapplyrelevantresearchtonewproducts	Toimprovetheperformanceandmarketcompetitivenessofnewproducts

R&Dpersonnel

	2024	2023	Change
Number(person)	136	119	14.29%
Proportion	3.73%	2.81%	0.92%
EducationalstructureofR&Dpersonnel
Undergraduate	73	62	17.74%
Masterdegree	20	18	11.11%
Doctordegree	1	2	-50.00%
Collegeorbelow	42	37	13.51%
Agestructure
Under30yearsold	34	28	21.43%

30-40yearsold

30-40yearsold	60	64	-6.25%
Over40yearsold	42	27	55.56%

R&Dinvestment

	2024	2023	Change
R&Dinvestmentamount(yuan)	56,000,000.18	57,802,244.08	-3.12%
ProportionofR&Dinvestmentinoperatingincome	1.42%	1.26%	0.16%
CapitalizationamountofR&Dinvestment(yuan)	0.00	0.00	0.00%
ProportionofcapitalizedR&DinvestmentinR&Dinvestment	0.00%	0.00%	0.00%

ReasonsandimpactofmajorchangesinthecompositionofR&DpersonnelNotapplicableReasonsforsignificantchangesintheproportionoftotalR&DinvestmentinoperatingincomecomparedwiththepreviousyearNotapplicableReasonsforsignificantchangesinthecapitalizationrateofR&DinvestmentandtheirrationalityNotapplicable

5.Cashflow

Unit:yuan

Item	2024	2023	YoYincrease/decrease
Sub-totalofcashinflowsfromoperatingactivities	4,389,078,476.62	5,095,999,854.92	-13.87%
Sub-totalofcashoutflowsfromoperatingactivities	3,852,347,516.33	4,463,598,366.94	-13.69%
Netcashflowsfromoperatingactivities	536,730,960.29	632,401,487.98	-15.13%
Subtotalofcashinflowsfrominvestingactivities	207,107,067.71	1,778,284.57	11,546.45%
Sub-totalofcashoutflowsfrominvestingactivities	317,998,568.53	91,104,776.03	249.05%
Netcashflowsfromtheinvestingactivities	-110,891,500.82	-89,326,491.46	-24.14%
Subtotalofcashinflowsfromfinancingactivities	323,957,187.86	250,000,000.00	29.58%
Sub-totalofcashoutflowsfromfinancingactivities	735,302,707.60	602,163,687.52	22.11%
Netcashflowsfromfinancingactivities	-411,345,519.74	-352,163,687.52	-16.81%
Netincreaseofcashandcashequivalents	14,325,023.78	190,890,764.07	-92.50%

DescriptionofmaininfluencingfactorsofsignificantYoYchangesinrelevantdataCashinflowsandoutflowsfrominvestingactivitieschangedsignificantlyYoY,whichismainlyduetotheincreaseintimedeposits.

ReasonsforsignificantdifferencebetweennetcashflowsfromoperatingactivitiesoftheCompanyduringthereportingperiodandnetprofitofthecurrentyearNotapplicable

V.Analysisofnon-mainbusinessNotapplicableVI.Analysisofassetsandliabilities

1.Majorchangesinthecompositionofassets

Unit:yuan

Asattheendof2024

	Asattheendof2024		Early2024		Increaseordecreaseinproportion	Descriptionofsignificantchanges
	Amount	Proportionintotalassets	Amount	Proportionintotalassets	Increaseordecreaseinproportion	Descriptionofsignificantchanges
Monetaryfunds	518,954,177.49	12.95%	504,629,153.71	12.00%	0.95%	Notapplicable
Accountsreceivable	260,152,834.43	6.49%	323,142,761.64	7.69%	-1.20%	Notapplicable
Contractassets	0.00	0.00%	0.00	0.00%	0.00%	Notapplicable
Inventories	1,984,486,969.74	49.52%	2,100,666,175.28	49.97%	-0.45%	Notapplicable
Investmentproperties	301,002,364.41	7.51%	360,255,832.14	8.57%	-1.06%	Notapplicable
Long-termequityinvestments	50,907,036.84	1.27%	51,862,607.30	1.23%	0.04%	Notapplicable
Fixedassets	377,568,144.41	9.42%	355,785,354.68	8.46%	0.96%	Notapplicable
Constructioninprogress	0.00	0.00%	0.00	0.00%	0.00%	Notapplicable
Right-of-useassets	98,437,976.41	2.46%	109,452,481.64	2.60%	-0.14%	Notapplicable
Short-termborrowings	124,087,754.51	3.10%	250,187,763.87	5.95%	-2.85%	Notapplicable
Contractliabilities	12,605,722.95	0.31%	12,286,243.62	0.29%	0.02%	Notapplicable
Long-termborrowings	0.00	0.00%	0.00	0.00%	0.00%	Notapplicable
Leaseliabilities	35,065,292.04	0.87%	43,526,352.52	1.04%	-0.17%	Notapplicable

HighproportionofoverseasassetsNotapplicable

2.Assetsandliabilitiesmeasuredatfairvalue

Notapplicable

3.RestrictionsstatusonassetsrightsasoftheendofthereportingperiodNotapplicable

VII.Analysisofinvestmentstatus

1.Generalsituation

Investmentamountduringthe

reportingperiod(yuan)

Investmentamountduringthereportingperiod(yuan)	Investmentamountinthesameperiodoflastyear(yuan)	Changerange
0.00	80,000,000.00	-100.00%

2.Significantequityinvestmentacquiredduringthereportingperiod

Notapplicable

3.Significantnon-equityinvestmentsinprogressduringthereportingperiodNotapplicable

4.Investmentinfinancialassets

(1)SecuritiesinvestmentsituationNotapplicable

(2)DerivativesinvestmentsituationNotapplicable

5.UseofraisedfundsNotapplicableVIII.Saleofmajorassetsandequity

1.SaleofmajorassetsNotapplicable

2.SaleofsignificantequityNotapplicable

IX.AnalysisofmajorholdingandparticipatingcompaniesMajorsubsidiariesandjoint-stockcompanieswithanimpactofmorethan10%onthecompany'snetprofit

Unit:yuan

Nameofthecompany

Nameofthecompany	Companytype	Mainbusiness	Registeredcapital	Totalassets	Netassets	Operatingrevenue	Operatingprofit	Netprofit
ShenzhenHarmonyWorldWatchCentreCo.,Ltd.	Subsidiaries	Purchaseandsaleofclocks,watchesandspareparts,andmaintenanceservices.	600,000,000	1,994,673,835.63	1,124,696,669.99	2,864,961,918.35	224,615,059.28	169,967,233.08
FIYTASalesCo.,Ltd.	Subsidiaries	Design,R&Dandsalesofclocksandwatchesandspareparts.	450,000,000	430,580,717.99	322,904,281.38	408,216,929.14	-12,978,662.66	-9,983,669.33
ShenzhenFIYTAPrecisionTechnologyCo.,Ltd.	Subsidiaries	Manufactureclocksandwatchesandspareparts.	180,000,000	290,546,321.79	217,910,085.80	328,399,825.27	4,137,027.52	7,634,783.28
ShenzhenFIYTASTDCo.,Ltd.	Subsidiaries	Productionandprocessingofprecisionspareparts.	50,000,000	194,063,771.01	170,826,371.10	153,673,661.62	6,762,026.36	6,999,097.67
FIYTA(HONGKONG)LIMITED	Subsidiaries	Tradeandinvestmentinwatches,clocksandaccessories.	137,737,520	264,479,035.44	253,422,394.80	73,498,904.56	5,703,019.60	5,688,824.76
EmileChourietHorologe(Shenzhen)Co.,Ltd.	Subsidiaries	Design,R&Dandsalesofclocksandwatchesandspareparts.	41,355,200	138,401,065.89	54,609,576.57	60,923,662.03	7,072,008.60	4,575,371.28

Acquisitionanddisposalofsubsidiariesduringthereportingperiod

NotapplicableDescriptionofmainholdingandparticipatingcompanies

1.ThenetprofitofShenzhenHarmonyWorldWatchCentreCo.,Ltd.decreasedyear-on-year,primarilyduetoadeclineinsalesrevenuefromtheFullservicebusinessofluxurywatches.

2.ThenetprofitofShenzhenFlytaPrecisionTechnologyCo.,Ltd.decreasedyear-on-year,mainlyduetoadecreaseinsalesrevenuefromthewatchbrandbusiness,anincreaseininventoryimpairmentlosses,andotherreasons.

X.StructuredentitiescontrolledbythecompanyNotapplicable

XI.Structuredentitiescontrolledbythecompany(I)FuturedevelopmentstrategyIn2025,theCompanywillcontinuetofollowtheguidingprincipleof"high-qualitydevelopment",toexpandthewatchindustryandimproveitscorecompetitiveness,andacceleratethedevelopmentofnewindustries,enhancecorefunctions,anddoasolidjobinthefollowing:

1.ConsolidatethebrandpositioningandimprovethecomprehensivecompetitivenessofthebrandThe"FIYTA"brandwillremainasa"high-qualityChinesewatchbrandfeaturingaerospacewatch".Byadheringtothe"nationaltide"direction,theCompanywillstrengthenproductinnovationdesign,promotetheIPlinkagebetweenthebrandandaerospaceand"PillarsofaGreatPower",andcreateproductdifferentiation.Inaddition,theCompanywillstrengthenprecisionmarketingplanning,relyononlinemediaandofflinechannels,toexpandthebrandinfluence,andintegrateaviationcultureandtraditionalChinesecultureintothebrandstoryinanall-roundway.

2.DeepenchanneloperationandpromotetheintegrateddevelopmentofonlineandofflinechannelsIntermsofthewatchbusiness,thechannelandbrandstructurewillbeoptimizedconstantly,andthefocuswillbeonthedevelopmentofcorehigh-qualitychannelsandmedium-andhigh-endbrands;theleanoperationofofflinechannelsandthecombinationofproductandmarketingofonlinechannelswillbeenhanced,topromotetheintegrateddevelopmentofonlineandofflinechannels,andexploreopportunitiesforchannelandbrandresourceintegrationinanorderlymanner.

3.IncreaseR&DinvestmentandimprovescientificandtechnologicalattributesTheCompanywillincreaseinvestmentinthedomesticationofmovements,thedevelopmentofhigh-endcustomizedmovementssuchastourbillonsandkeycomponents,integrateaerospacecharacteristictechnologiesandmaterialapplications,andimprovescientificandtechnologicalattributes.

4.Acceleratetransformationandupgrading,andvigorouslydevelopnewindustriesUndertheprincipleof"sharedtechnology,sharedindustryroots,andalignedvalue",theCompanywillvigorouslydevelopstrategicemergingindustriessuchasprecisiontechnologybusinessandsmartwearablebusiness,continuetobuildcorecapabilities,andimprovetheoverallbusinessscale.(II)Possiblerisksandcountermeasures

1、ConsumermarketriskAtpresent,theCompanyisencounteringmultiplemarketriskssuchassluggishdomestictraditionalwatchconsumerdemand,consumeroutflowandconsumerpreferenceshift.Inthisregard,theCompanywillconsolidatethepositioningofbrandcharacteristics,improvetheaerospacequalityofproducts,impressconsumerswithperceptibledistinctivecharacteristics,andorganicallycombineaerospaceculturewithChinesetraditionalculture,soastoobtaintherecognitionoftargetconsumergroups.TheCompanywilldeeplycultivatetherefinedoperationofchannels,andimprovethefulllifecyclemanagementandservicecapabilitiesofconsumers,andenhanceconsumerstickiness.Additionally,TheCompanywillseizemarketopportunitiesandactivelyexplorebusinessesrelatedtooverseasmarketsandduty-freemarkets.

2、Coretechnologyrisk

Atpresent,theCompanyisencounteringmultipletechnicalchallengesintheproductionandmanufacturingoftraditionalwatchmovementsandkeycomponents,intelligentwearablesystemsandfunctioniteration,andextensivein-depthapplicationofdigitalization.Inthisregard,theCompanywillincreaseinvestmentincoretechnologies,promotecoretechnologiesintheresearchanddevelopmentofmovementandkeycomponents,thedevelopmentandintegrationofintelligentsoftwareandhardware,andtheapplicationofAIandothercutting-edgetechnologies,strengthentheintroductionandretentionofkeytechnicaltalents,andimprovetheoverallscientificandtechnologicalinnovationability,soastoempowerhigh-qualitybusinessdevelopment.

XII.Reception,survey,communication,interviewandotheractivitiesduringthereportingperiod

Reception

time

Receptiontime	Receptionplace	Receptionmode	Objecttype	Receptionobject	Maincontentsdiscussedandinformationprovided	Indexofbasicinformationofthesurvey
March18,2024	NetworkandconferenceroomofFIYTATechnologyBuilding	Others	agencies	ShenwanHongyuanSecuritiesCo.,Ltd.,FullgoalFundManagementCompanyLimited	Companyoperationanddevelopmentplanning,etc.	https://irm.cninfo.com.cn/ircs/company/companyDetail?stockcode=000026&orgId=gssz0000026
March22,2024	https://eseb.cn/1cFKiOE1oVq	Onlinecommunicationonthenetworkplatform	Others	InvestorswhoparticipatedintheCompany's2023OnlinePerformanceBriefingonline	Companyoperationanddevelopmentplanning,etc.
June6,2024	ConferenceroomofFIYTATechnologyBuilding	Fieldsurvey	agencies	EastmoneySecuritiesCo.,Ltd.,YuekaiSecuritiesCo.,Ltd.,JingyuanTianchengInvestmentConsultantsCo.,Ltd.,MozhuPrivateEquityFundManagementCo.,Ltd.,ShenzhenFlyingTigerInvestment&ManagementCo.,Ltd.,ShenzhenQianhaiHuirongfengCapitalManagementCo.,Ltd.,	Companyoperationanddevelopmentplanning,etc.

ShenzhenQiancunInvestmentConsultingCo.,Ltd.,andLuyanGuangnianCompany

				ShenzhenQiancunInvestmentConsultingCo.,Ltd.,andLuyanGuangnianCompany
October30,2024	Telephoneandwebconference	Telephonecommunication	agencies	ShenwanHongyuanSecuritiesCo.,Ltd.,FounderSecuritiesCo.,Ltd.,andChinaAssetManagementCo.,Ltd.	Companyoperationanddevelopmentplanning,etc.
December3,2024	ConferenceroomofFIYTATechnologyBuilding	Fieldsurvey	agencies	FullgoalFundManagementCompanyLimited	Companyoperationanddevelopmentplanning,etc.
December9,2024	ConferenceroomofFIYTATechnologyBuilding	Fieldsurvey	agencies	HongsikeAssetManagement(Beijing)Co.,Ltd.	Companyoperationanddevelopmentplanning,etc.
December12,2024	"QuanjingLuyan"website,WeChatofficialaccount,andAPP	Onlinecommunicationonthenetworkplatform	Others	Investorsparticipatingintheonlinecollectivereceptiondayforinvestors	Companyoperationanddevelopmentplanning,etc.

XIII.FormulationandimplementationofmarketvaluemanagementsystemandvaluationboostplanWhethertheCompanyhasestablishedamarketvaluemanagementsystem.NoWhethertheCompanyhasdisclosedplansforvaluationboost.No

XIV.Implementationoftheactionplanof"doubleimprovementofqualityandreturn"Whetherthecompanyhasdisclosedtheannouncementoftheactionplanof"doubleimprovementofqualityandreturn".No

Section4Corporategovernance

I.Basicconditionsofcorporategovernance

In2024,theCompanycontinuedtoimproveitscorporategovernancestructureinstrictaccordancewiththerequirementsoftheCompanyLaw,theSecuritiesLawandthenormativedocumentsissuedbytheCSRConthegovernanceoflistedcompanies,andmadeeffortstoenhancetheconstructionofmodernenterprisesystemsandimprovethestandardoperationleveloftheCompany.Asaresult,thecorporategovernancecompliedwiththerelevantregulationsoftheCSRC.InstrictaccordancewiththeCompanyLawandotherlaws,regulations,normativedocumentsandtheArticlesofAssociation,theCompanyhasestablishedandimprovedastandardizedcorporategovernancestructureandrulesofprocedure,formedadecision-makingandoperationmanagementsystemwiththeBoardofShareholders,theBoardofDirectors,theBoardofSupervisorsandtheCompany'smanagersasthemainbody,andperformedvariousdutiesstipulatedintheCompanyLawandtheArticlesofAssociationaccordingtothelaw.TheBoardofShareholders,servingastheCompany'sorganofauthority,isresponsibleforelectingandreplacingdirectorsandsupervisors,decidingontheirremuneration,approvingreportsoftheBoardofDirectors,reportsoftheBoardofSupervisors,theCompany'sprofitdistributionplan,equityincentiveplanandsoon,andformakingresolutionsonmajormatterssuchastheCompany'scapitalincreaseanddecrease,theissuanceofcorporatebonds,theCompany'smerger,division,dissolution,liquidationorchangeofcorporateform,andtheamendmentoftheArticlesofAssociation.

TheBoardofDirectors,playingtheroleof"determiningstrategies,makingdecisionsandpreventingrisks",isresponsibleforimplementingtheresolutionsoftheBoardofShareholders,conveningtheBoardofShareholdersandreportingtoit.Inaddition,theBoardofDirectorsisresponsiblefordecidingtheCompany'sexternalinvestment,assetacquisitionandsale,assetmortgage,externalguarantee,relatedpartytransactionsandothermatterswithinthescopeauthorizedbytheBoardofShareholders,makingdecisionsontheestablishmentoftheCompany'sinternalmanagementorganizationandbranches,andforappointingordismissingtheCompany'sgeneralmanager,secretaryoftheBoardofDirectorsandotherseniorofficers.TheBoardofDirectorsconsistsofninedirectors,includingthreeindependentdirectors,andhasastrategyandESGcommittee,anauditcommitteeandanomination,remunerationandappraisalcommittee.

TheBoardofSupervisorsisresponsibleforreviewingtheCompany'sregularreports,checkingtheCompany'sfinancialsituation,supervisingthedirectorsandseniorofficerstoperformtheirdutiesinaccordancewiththelaw,andproposingthedismissalofdirectorsandseniorofficerswhoviolatelaws,administrativeregulations,theArticlesofAssociationorresolutionsoftheBoardofShareholders.TheBoardofSupervisorsconsistsofthreesupervisors,includinganemployeerepresentativesupervisor.

Themanagersareresponsiblefor"operation,implementationandmanagement".ThegeneralmanagerisresponsibletotheBoardofDirectors,presidesovertheproductionandoperationmanagementundertheleadershipoftheBoardofDirectors,organizestheimplementationoftheBoardofDirectors'resolutionswithinthescopeofauthorizationoftheBoardofDirectorsandreportstotheBoard.Besides,thegeneralmanagerisresponsiblefororganizingtheimplementationoftheCompany'sannualdevelopmentplanandbusinessplan,

proposingtheinvestmentschemeandplan,annualfinancialbudgetplan,finalaccountplan,profitdistributionplanandlossrecoveryplan,thecapitalincreaseanddecreaseplan,etc.Whethertheactualcorporategovernancesignificantlyconflictswiththelaws,administrativeregulationsandCSRCregulationsonthegovernanceoflistedcompaniesNo

II.TheCompany'sindependencefromthecontrollingshareholderandtheactualcontrollerinensuringtheCompany'sassets,personnel,finance,organization,business,etc.TheCompanyandthecontrollingshareholderhaveachievedthe"fiveseparations"intermsofbusiness,personnel,assets,organizationandfinance,andtheCompanyhasindependentandcompletebusinessandindependentoperationability.

Business:TheCompanyismainlyengagedinthewatchindustry,withindependentproduction,auxiliaryproduction,supportingfacilitiesandprocurementandsalessystems,andthereisnohorizontalcompetitionbetweentheCompanyandthecontrollingshareholder.Personnel:TheCompanyhasanindependentorganizationandasoundsystemregardinglabor,personnelandwagemanagement.ExceptforthedirectorsMr.WangBo,Mr.LiPeiyin,Mr.DengJianghu,Mr.GuoGaohang,MadamHuMin,thechairmanoftheboardofsupervisors,andMr.YuanTianbo,thesupervisor,whoserveinshareholderentities,otherdirectorsandseniorofficersholdnodualpostsinshareholderentities,andfinancialpersonnelholdnopart-timepostsinaffiliates.

Assets:TheCompanyandthecontrollingshareholderhaveclearlyestablishedpropertyrights,andenjoyindependentlegalpersonpropertyrightsovertheCompany'sassets.TheCompany'sassetsarefullyindependentofthecontrollingshareholder,andtheCompanyindependentlyownstrademarkssuchas"FIYTA"and"Harmony".

Organization:TheBoardofDirectors,BoardofSupervisorsandotherinternalorganizationsoftheCompanyaresoundandoperateindependently,andthereisnosubordinationorco-locationwiththefunctionaldepartmentsofthecontrollingshareholder.Thecontrollingshareholderexercisesitsrightsandassumescorrespondingobligationsinaccordancewiththelaw,andhasnotdirectlyorindirectlyintervenedintheCompany'sbusinessactivitiesbyexceedingtheauthorityoftheBoardofShareholders.

Finance:TheCompanyhassetupanindependentfinancialdepartment,establishedasophisticatedandindependentfinancialaccountingsystemandfinancialmanagementsystem,andopenedanaccountinthebankindependently.ThecontrollingshareholderhasnotinterferedwiththeCompany'sfinancialaccountingactivities.

III.HorizontalcompetitionNotapplicableIV.Informationontheannualgeneralmeetingandextraordinarygeneralmeetingheldduringthereportingperiod

1.Generalmeetingofshareholdersduringthereportingperiod

Session

Typeofmeeting

InvestorProportion

Dateofmeeting

Disclosuredate

Resolutionsmadeatthemeeting

ofparticipation

		ofparticipation
2023AnnualGeneralMeeting	Annualgeneralmeeting	42.01%	April18,2024	April19,2024	Fordetails,pleaserefertotheAnnouncementonResolutionsofthe2023AnnualGeneralMeeting2024-016disclosedbytheCompanyontheCNINFOwebsite.
Thefirstextraordinarygeneralmeetingin2024	Extraordinarygeneralmeeting	43.48%	September6,2024	September7,2024	Fordetails,pleaserefertotheAnnouncementoftheResolutionoftheFirstExtraordinaryGeneralMeetingin2024No.2024-034disclosedbytheCompanyontheCNINFOwebsite.
Thesecondextraordinarygeneralmeetingin2024	Extraordinarygeneralmeeting	41.09%	November28,2024	November29,2024	Fordetails,pleaserefertotheAnnouncementoftheResolutionoftheSecondExtraordinaryGeneralMeetingin2024No.2024-044disclosedbytheCompanyontheCNINFOwebsite.

2.PreferredshareholderswithrestoredvotingrightsrequesttoconveneatemporarygeneralmeetingNotapplicable

V.Membersofthedirectors,supervisorsandseniorofficers

1.Basicinformation

Name

Name	Gender	Age	Title	Employmentstatus	Beginningdateofterm	Endingdateofterm	Numberofsharesheldatthebeginningoftheperiod(shares)	Numberofsharesincreasedinthecurrentperiod(shares)	Numberofsharesreducedinthecurrentperiod(shares)	Otherincreasesanddecreases(shares)	Numberofsharesheldattheendoftheperiod(shares)	Reasonsforchangesinshareincreaseordecrease
ZhangXuhua	Male	48	Chairman	Incumbent	July1,2021	September5,2027	0	0	0	0	0	Notapplicable
WangBo	Male	46	Director	Incumbent	September6,2024	September5,2027	0	0	0	0	0
LiPeiyin	Male	39	Director	Incumbent	February24,2021	September5,2027	0	0	0	0	0
DengJianghu	Male	41	Director	Incumbent	September8,2021	September5,2027	0	0	0	0	0
GuoGaohang	Male	38	Director	Incumbent	December28,2023	September5,2027	0	0	0	0	0
PanBo	Male	49	Director	Incumbent	February24,2021	September5,2027	230,050	0	0	0	230,050
PanBo	Male	49	Generalmanager	Incumbent	January15,2021	September5,2027	230,050	0	0	0	230,050
WangSusheng	Male	56	Independentdirector	Incumbent	September6,2024	September5,2027	0	0	0	0	0
WangWenbo	Male	43	Independentdirector	Incumbent	September6,2024	September5,2027	0	0	0	0	0
CaoGuangzhong	Male	57	Independentdirector	Incumbent	September6,2024	September5,2027	0	0	0	0	0
HuMin	Female	40	ChairmanoftheBoardofSupervisors	Incumbent	Jan.4,2024	September5,2027	0	0	0	0	0
HuMin	Female	40	Supervisor	Incumbent	December28,	September5,	0	0	0	0	0

2023

					2023	2027
YuanTianbo	Male	45	Supervisor	Incumbent	December28,2023	September5,2027	0	0	0	0	0
HuJing	Female	54	Supervisor	Incumbent	September7,2021	September5,2027	9,000	0	0	0	9,000
LuWanjun	Male	58	Deputygeneralmanager	Incumbent	August8,2014	September5,2027	160,050	0	0	0	160,050
LuWanjun	Male	58	Generalcounsel	Incumbent	October25,2021	September5,2027	160,050	0	0	0	160,050
LiuXiaoming	Male	54	Deputygeneralmanager	Incumbent	17October2016	September5,2027	160,050	0	0	0	160,050
LiMing	Male	52	Deputygeneralmanager	Incumbent	17October2016	September5,2027	160,090	0	0	0	160,090
SongYaoming	Male	58	Chiefaccountant	Incumbent	February6,2022	September5,2027	0	0	0	0	0
SongYaoming	Male	58	SecretaryoftheBoardofDirectors	Incumbent	April21,2022	September5,2027	0	0	0	0	0
TangHaiyuan	Male	52	Deputygeneralmanager	Incumbent	September29,2019	September5,2027	107,550	0	0	0	107,550
XiaoYi	Male	51	Director	Resigned	February24,2021	September6,2024	0	0	0	0	0
WangJianxin	Male	55	Independentdirector	Resigned	September11,2018	September6,2024	0	0	0	0	0
ZhongHongming	Male	50	Independentdirector	Resigned	September11,2018	September6,2024	0	0	0	0	0
TangXiaofei	Male	51	Independentdirector	Resigned	September11,2018	September6,2024	0	0	0	0	0
Total	--	--	--	--	--	--	826,790	0	0	0	826,790	--

WhethertherewasanyresignationofdirectorsandsupervisorsanddismissalofseniorofficersduringthereportingperiodNo

(IV)Changeindirectors,supervisorsandseniorofficers

Name

Name	Positionheld	Type	Date	Reasons
ZhangXuhua	Chairman	Beelected	September6,2024	Changeofterm
ZhangXuhua	Director	Beelected	September6,2024	Changeofterm
WangBo	Director	Beelected	September6,2024	Changeofterm
LiPeiyin	Director	Beelected	September6,2024	Changeofterm
DengJianghu	Director	Beelected	September6,2024	Changeofterm
GuoGaohang	Director	Beelected	September6,2024	Changeofterm
PanBo	Director	Beelected	September6,2024	Changeofterm
PanBo	Generalmanager	Employment	September6,2024	Changeofterm
WangSusheng	Independentdirector	Beelected	September6,2024	Changeofterm
WangWenbo	Independentdirector	Beelected	September6,2024	Changeofterm
CaoGuangzhong	Independentdirector	Beelected	September6,2024	Changeofterm
HuMin	ChairmanoftheBoardofSupervisors	Beelected	September6,2024	Changeofterm
HuMin	Supervisor	Beelected	September6,2024	Changeofterm
YuanTianbo	Supervisor	Beelected	September6,2024	Changeofterm
HuJing	Employeesupervisor	Beelected	August26,2024	Changeofterm
LuWanjun	Deputygeneralmanagerandgeneralcounsel	Employment	September6,2024	Changeofterm
LiuXiaoming	Deputygeneralmanager	Employment	September6,2024	Changeofterm
LiMing	Deputygeneralmanager	Employment	September6,2024	Changeofterm
SongYaoming	ChiefaccountantandsecretaryofBoardofDirectors	Employment	September6,2024	Changeofterm
TangHaiyuan	Deputygeneralmanager	Employment	September6,2024	Changeofterm
XiaoYi	Director	Resignationuponexpirationofterm	September6,2024	Changeofterm
WangJianxin	Independentdirector	Resignationuponexpirationofterm	September6,2024	Changeofterm
ZhongHongming	Independentdirector	Resignationuponexpirationofterm	September6,2024	Changeofterm
TangXiaofei	Independentdirector	Resignationuponexpirationofterm	September6,2024	Changeofterm

2.Workperformanceinformation

Professionalbackground,mainworkexperienceandcurrentmainresponsibilitiesofthecurrentdirectors,supervisorsandseniorofficersMr.ZhangXuhua,borninMarch1977.HeholdsaMasterDegreeofBusinessAdministrationfromXi'anJiaotongUniversityandanEMBAfromChinaEuropeInternationalBusinessSchool.HecurrentlyservesasthechairmanoftheCompany.Heonceactedasthemanagingdirector,deputygeneralmanager,assistantgeneralmanager,generalmanagerofshoppingcenterbusinessdepartmentofRainbowDigitalCommercialCo.,Ltd.,generalmanagerofChengduCompany,directorofcommoditycenter,generalmanagerofDreams-On,generalmanagerofAVICPlazaProject,deputymanagerofdistributioncenter,andanemployeeofthemarketingdepartmentofShenzhenVankeFineProductsManufacturingCo.,Ltd.

Mr.WangBo,borninJuly1979,holdsaMasterDegreeofBusinessAdministrationfromRenminUniversityofChina.HecurrentlyservesasadirectoroftheCompany,directorofCPCorganizationdepartment/human

resourcesdepartmentofAVICINNO,directorofShenzhenShanghaiHotel,directorofShennanCircuitCo.,Ltd.,directorofTianmaMicroelectronicsCo.,Ltd.,directorofAVICInternationalHoldings(Zhuhai)Co.,Ltd.,anddirectorofAVICInternationalSupplyChainTechnologyCo.,Ltd.HeonceactedasthedirectorofthehumanresourcesdepartmentofChinaAviationTechnologyShenzhenCo.,Ltd.,thedirectorofhumanresourcesdepartmentofShenzhenCATICRealEstateCo.,Ltd.,thedirectorofthehumanresourcesdepartmentofChinaAviationTechnologyShenzhenCo.,Ltd.,andthedeputysecretaryofthePartyCommitteeandgeneralmanagerofGrandSkylightHotelsManagementCo.,Ltd.

Mr.LiPeiyin,borninSeptember1986,isacertifiedpublicaccountantandsenioraccountant.HeholdsaMasterDegreeinAccountingfromXiamenUniversityandanMBAfromMissouriStateUniversity.HecurrentlyservesasadirectoroftheCompany,theheadofthefinancialmanagementdepartmentofAVICINNO,thedirectorofAVICInternationalSupplyChainTechnologyCo.,Ltd.,thedirectorofShennanCircuitsCo.,Ltd.,thedirectorofTianmaMicroelectronicsCo.,Ltd.,thedirectorofContinentalAerospaceTechnologiesHoldingLimited,andthedirectorofContinentalAerospaceTechnologiesGroupCo.,Ltd.

Mr.DengJianghu,borninJuly1984,holdsaMasterDegreeinBusinessAdministrationfromNortheastNormalUniversity.HecurrentlyservesasadirectoroftheCompany,thedirectoroftheoperationmanagementdepartmentofAVICINNO,thedirectorofTianmaMicroelectronicsCo.,Ltd.,thedirectorofShennanCircuitsCo.,Ltd.,thedirectorofAVICHuadongPhotoelectricCo.,Ltd.,andthechairmanofCastic-SMPMachineryCorp.Ltd.HeonceactedasthemanageranddeputymanageroftheplanningandoperationdepartmentoftheCompany,thedirectorofthemodernserviceindustryofficeofChinaAviationTechnologyShenzhenCo.,Ltd.,andtheseniorprojectmanagerofstrategicoperationmanagementofthestrategicdevelopmentdepartmentofShennanCircuitsCo.,Ltd.

Mr.GuoGaohang,borninMarch1987,holdsaMasterDegreeinMaterialsPhysicsandChemistryfromHarbinInstituteofTechnology.HecurrentlyservesasadirectoroftheCompany,thedeputydirectoroftheplanninganddevelopmentdepartmentofAVICINNO(leading),adirectorofAVICInternationalSupplyChainTechnologyCo.,Ltd.,adirectorofTianmaMicroelectronicsCo.,Ltd.,adirectorofShennanCircuitsCo.,Ltd.,andadirectorofRainbowDigitalCommercialCo.,Ltd.HeonceactedasstrategicoperationmanagementprojectmanagerofplanningandoperationdepartmentofChinaAviationTechnologyShenzhenCo.,Ltd.,seniorsemiconductorindustryanalystandsemiconductorindustryanalystofTrendForceConsulting(Shenzhen)Co.,Ltd.,andpackagingandtestingprocessdesignengineerofShenzhenSTSMicroelectronicsCo.,Ltd.

Mr.PanBo,borninMarch1976,isanengineer.HeholdsaBachelorDegreeinMechanicalandElectricalEngineeringfromtheBeijingUniversityofAeronauticsandAstronauticsandanEMBAfromChinaEuropeInternationalBusinessSchool.HecurrentlyservesastheManagingDirectoroftheCompany.Heonceactedasthedeputygeneralmanager,secretaryoftheBoardofDirectorsandassistanttothegeneralmanageroftheCompany,thegeneralmanager,deputygeneralmanager,assistanttothegeneralmanager,managerofthesalesdepartmentandmanagerofthelogisticsdepartmentofFIYTASalesCo.,Ltd.

Mr.WangSusheng,borninMarch1969,isacertifiedpublicaccountant,adoctoroflawfromPekingUniversity,andholdsanMBAfromUniversityofChicago.HecurrentlyservesasanindependentdirectoroftheCompany,aprofessorofSouthernUniversityofScienceandTechnology,andanindependentdirectorofChangyuanTechnologyGroupLtd.,DowellServiceUrbanOperationServiceGroupCo.,Ltd.(02352.HK)andCALBGroupCo.,Ltd.(03931.HK).HeonceactedasthedirectorandprofessoroftheeconomicmanagementdepartmentofHarbinInstituteofTechnology(ShenzhenGraduateSchool),andthedirectorofCDBSino-SwissVentureCapitalFundManagementCo.,Ltd.

Mr.WangWenbo,borninDecember1982,holdsaDoctoralDegreeinMarketingfromNewYorkUniversity.HecurrentlyservesasanindependentdirectoroftheCompany,anassociateprofessor,tenuredprofessoranddoctoralsupervisoroftheBusinessSchooloftheHongKongUniversityofScienceandTechnology.HeonceactedasaprofessorofWeBank×JointLaboratoryScientificCommitteeonArtificialIntelligenceofHongKongUniversityofScienceandTechnology,andatechnicalexpertconsultantofmanyleadingcompaniesintheindustry.Mr.CaoGuangzhong,borninMay1968,holdsaDoctoralDegreeinMechatronicEngineeringfromXi'anJiaotongUniversity.HecurrentlyservesasanindependentdirectoroftheCompany,aprofessorofShenzhenUniversity,anindependentdirectorofShenzhenColibriTechnologiesCo.,Ltd.andShenzhenSinvoAutomationCo.,Ltd.,astandingmemberoftheComputerApplicationFederationofChinaInstrumentandControlSociety,astandingdirectorofGuangdongAutomationSociety,adirectorofGuangdongArtificialIntelligenceandRoboticsSociety,avicechairmanofShenzhenRoboticsAssociation,andascienceandtechnologyreviewexpertoftheNationalNaturalScienceFoundationofChina,theMinistryofScienceandTechnology,theMinistryofIndustryandInformationTechnologyandGuangdongProvince.HeonceactedasanassociateprofessorofMechatronicsatXi'anJiaotongUniversityandapostdoctoralresearcheratKoreaAdvancedInstituteofScienceandTechnology(KAIST).MadamHuMin,borninMay1985,isaneconomistandholdsaMasterDegreeinCivilProcedureLawfromPekingUniversity.ShecurrentlyservesasthechairmanoftheBoardofSupervisorsoftheCompany,thechiefauditorofAVICINNO,theheadoftheauditandlegalDepartment,thedirectorofAVICInternationalSupplyChainTechnologyCo.,Ltd.,thedirectorofAVICInternationalHoldingLimited,thedirectorofChinaAviationTechnologyBeijingCo.,Ltd.,thesupervisorofShennanCircuitsCo.,Ltd.,thesupervisorofRainbowDigitalCommercialCo.,Ltd.,andthesupervisorofTianmaMicroelectronicsCo.,Ltd.Sheonceactedasthegeneralcounselandgeneralmanagerofthelegalaffairsanddisciplineinspectionauditdepartment,thedeputygeneralcounselandgeneralmanagerofthelegalaffairsandcontractmanagementdepartment,thegeneralmanageroflegalaffairsandcontractmanagementandauditsupervisiondepartment,thedeputygeneralmanagerofthelegalaffairandcontractmanagementdepartmentofChinaNationalAero-technologyInternationalEngineeringCorporation.

Mr.YuanTianbo,borninOctober1980,isaneconomistandholdsaMasterDegreeinManagementScienceandEngineeringfromNorthwesternPolytechnicalUniversity.HecurrentlyservesasthesupervisoroftheCompany,thedeputydirectorofthedisciplineinspectiondepartmentofAVICINNO(leading),andthedirectorofBoyuDongfangCo.,Ltd.Heonceactedasthedeputygeneralmanager(inchargeofwork)andgeneralmanagerassistantofBoyuDongfangCo.,Ltd.,generalmanageranddeputygeneralmanagerofChinaAviationTechnologyQinghaiCo.,Ltd.,directoroftheadministrationandhumanresourcesdepartmentanddirectorofthedevelopmentdepartmentofBoyuDongfangCo.,Ltd.,andtherecruitmentmanagementpostofthehumanresourcedepartmentofChinaAviationTechnologyShenzhenCo.,Ltd.

MadamHuJing,borninSeptember1971,isanaccountantandholdsaBachelorDegreeinAccountingfromJiangxiUniversityofFinanceandEconomics.ShecurrentlyservesastheemployeerepresentativesupervisorandseniortaxmanagerofthefinancedepartmentoftheCompany.Sheonceactedastheseniorbusinessmanageroftheauditdepartment,thefundmanagerofthefinancedepartmentandthetaxsupervisoroftheCompany.

Mr.LuWanjun,borninFebruary1967,isanaccountantandholdsanEMBAfromChinaEuropeInternationalBusinessSchool.HecurrentlyservesasthedeputygeneralmanagerandgeneralcounseloftheCompany.HeonceactedastheassistanttothegeneralmanageroftheCompany,theexecutivedeputygeneralmanager,deputygeneralmanager,assistanttothegeneralmanagerandmanagerofthefinancialdepartmentofShenzhenHarmonyWorldWatchCentreCo.,Ltd.

Mr.LiuXiaoming,borninJuly1971,isanengineerandeconomist.HeholdsaBachelorDegreeinManufacturingEngineeringfromtheBeijingUniversityofAeronauticsandAstronauticsandanEMBAfromChinaEuropeInternationalBusinessSchool.HecurrentlyservesasthedeputygeneralmanageroftheCompany.HeonceactedastheassistanttothegeneralmanageroftheCompany,thedeputygeneralmanagerandassistanttothegeneralmanagerofShenzhenHarmonyWorldWatchCentreCo.,Ltd.Mr.LiMing,borninSeptember1973.HeholdsaBachelorDegreeinMarketingfromZhongnanUniversityofFinanceandEconomicsandanEMBAfromChinaEuropeInternationalBusinessSchool.HecurrentlyservesasthedeputygeneralmanageroftheCompany.HeonceactedastheassistantgeneralmanageranddirectorofhumanresourcesdepartmentoftheCompany,deputygeneralmanager,assistantgeneralmanagerandmanagerofhumanresourcesdepartmentofShenzhenHarmonyWorldWatchCentreCo.,Ltd.;thedirectorofhumanresourcesandgeneralmanagerofmarketingcenterofCNCShenzhenBranch;thekeyaccountmanagerandmarketplanningmanagerofShenzhenBranchofChinaTelecom.

Mr.SongYaoming,borninJuly1967,isasenioraccountant,andholdsaMasterDegreeinEconomicsfromShaanxiUniversityofFinanceandEconomics,andanEMBAfromChinaEuropeInternationalBusinessSchool.HecurrentlyservesasthechiefaccountantandsecretaryoftheBoardofDirectorsoftheCompany.HeonceactedasthedeputygeneralmanagerandchiefaccountantofRainbowDigitalCommercialCo.,Ltd.,thedirectorofShenzhenAoxuanInvestmentCo.,Ltd.,thedirectorofShenzhenAoerInvestmentDevelopmentCo.,Ltd.,andthedeputymanagerandaccountantofthefinancialdepartmentofShenyangJinbeiAutomobileCo.,Ltd.

Mr.TangHaiyuan,borninFebruary1973,isaseniorengineer.HeholdsaBachelorDegreeinPlasticFormingTechnologyandEquipmentfromHefeiUniversityofTechnologyandanEMBAfromChinaEuropeInternationalBusinessSchool.HecurrentlyservesasthedeputygeneralmanageroftheCompany.Heonceactedasthegeneralmanager,deputygeneralmanager,assistantgeneralmanager,managerofqualitydepartment,manageranddeputymanagerofengineeringtechnologydepartmentofShenzhenFIYTAPrecisionTimingManufacturingCo.,Ltd.,andassistantgeneralmanageroftechnologyandmanageroftechnologydepartmentofShenzhenFIYTASTDCo.,Ltd.Positionsheldinshareholders

Name

Name	Shareholders'name	Positionsheldinshareholders	Beginningdateofterm	Endingdateofterm	Whethertoreceiveremunerationallowancefromtheshareholderunit
WangBo	AVICINNOCo.,Ltd.	DirectorofCPCorganizationdepartment/humanresourcesdepartment	January8,2025		Yes
LiPeiyin	AVICINNOCo.,Ltd.	Directoroffinancialmanagementdepartment	January8,2025		Yes
DengJianghu	AVICINNOCo.,Ltd.	DirectorofOperationsManagementDepartment.	January8,2025		Yes
GuoGaohang	AVICINNOCo.,Ltd.	Deputydirectoroftheplanninganddevelopmentdepartment(leading)	January8,2025		Yes

HuMin

HuMin	AVICINNOCo.,Ltd.	Chiefauditor,headofauditandlegaldepartment	January8,2025	Yes
HuMin	AVICInternationalHoldingLimited	Director	January3,2025	No
YuanTianbo	AVICINNOCo.,Ltd.	Deputydirectorofdisciplineinspectiondepartment(leading)	January8,2025	Yes
Descriptionofthepositionsheldinshareholders	Notapplicable

Positioninotherentities

Name	OtherunitsName	Positionsheldinotherentities	BeginningdateoftermDate	TerminationoftermDate	Whethertoreceiveremunerationallowancesfromotherorganizations
WangBo	ShenzhenShanghaiHotel	Director	January10,2018		No
	ShennanCircuitsCo.,Ltd.	Director	November13,2024		No
	TianmaMicroelectronicsCo.,Ltd.	Director	November18,2024		No
	AVICInternationalHoldings(Zhuhai)Co.,Ltd.	Director	January3,2025		No
	AVICInternationalSupplyChainTechnologyCo.,Ltd.	Director	January3,2025		No
LiPeiyin	AVICInternationalSupplyChainTechnologyCo.,Ltd.	Director	March17,2021		No
	ContinentalAerospaceTechnologiesGroupCo.,Ltd.	Director	March29,2021		No
	ShennanCircuitsCo.,Ltd.	Director	April6,2021		No
	ContinentalAerospaceTechnologiesHoldingLimited	Director	April1,2022		No
	TianmaMicroelectronicsCo.,Ltd.	Director	July8,2022		No
DengJianghu	TianmaMicroelectronicsCo.,Ltd.	Director	November29,2021		No
	ShennanCircuitsCo.,Ltd.	Director	April7,2022		No
	AVICHuadongPhotoelectricCo.,Ltd.	Director	November27,2023		No
	Castic-SMPMachineryCorp.Ltd.	Chairman	December30,2024		No
GuoGaohang	AVICInternationalSupplyChainTechnologyCo.,Ltd.	Director	November27,2023		No
	TianmaMicroelectronicsCo.,Ltd.	Director	March6,2024		No
	ShennanCircuitsCo.,Ltd.	Director	April18,2024		No
	RainbowDigitalCommercialCo.,Ltd.	Director	October15,2024		No
WangSusheng	SouthernUniversityofScienceandTechnology	Professor	April1,2017		Yes
WangSusheng	DowellServiceUrbanOperationServiceGroupCo.,Ltd.(02352.HK)	Independentdirector	December13,2020		Yes

ChangyuanTechnologyGroupLtd.

	ChangyuanTechnologyGroupLtd.	Independentdirector	August9,2021	Yes
	CALBGroupCo.,Ltd.(03931.HK)	Independentdirector	October6,2022	Yes
WangWenbo	HKUSTBusinessSchool	Associateprofessor,tenuredprofessor,anddoctoralsupervisor	July2,2018	Yes
CaoGuangzhong	ShenzhenUniversity	Professor	February29,2000	Yes
	ShenzhenColibriTechnologiesCo.,Ltd.	Independentdirector	October15,2019	Yes
	ShenzhenSinvoAutomationCo.,Ltd.	Independentdirector	October16,2020	Yes
HuMin	AVICInternationalSupplyChainTechnologyCo.,Ltd.	Director	July20,2022	No
	ChinaAviationTechnologyBeijingCo.,Ltd.	Director	January3,2025	No
	ShennanCircuitsCo.,Ltd.	Supervisor	April18,2024	No
	RainbowDigitalCommercialCo.,Ltd.	Supervisor	October15,2024	No
	TianmaMicroelectronicsCo.,Ltd.	Supervisor	February26,2025	No
YuanTianbo	BoyuDongfangCo.,Ltd.	Director	August1,2022	No
Explanationofservinginotherentities	Notapplicable

PunishmentsimposedbysecuritiesregulatorsontheCompany'sincumbentdirectors,supervisorsandseniorofficersandthosewholefttheirpostsduringthereportingperiodinthepastthreeyearsNotapplicable

3.Remunerationofdirectors,supervisorsandseniorofficers

Decision-makingprocedures,basisfordeterminationandactualpaymentofremunerationofdirectors,supervisorsandseniorofficersIntermsoftheremunerationofinternaldirectorsandseniorofficersoftheCompany,anannualsalarysystemisadopted,withthestructureofbasicannualsalaryandperformanceannualsalary.TheremunerationofinternaldirectorsisimplementedaftertheapprovalbytheBoardofShareholders,andtheremunerationofseniorofficersisdeterminedaftertheapprovalbytheBoardofDirectors.TheseniorofficersareassessedinaccordancewiththeManagementMeasuresfortheAssessmentofOperatingPerformanceofManagersandtheManagementMeasuresfortheRemunerationofManagers.ExceptforindependentdirectorswhoreceiveallowancesfromtheCompany,otherexternaldirectorsandshareholderrepresentativesupervisorsreceivenoremunerationfromtheCompany.TheremunerationofemployeerepresentativesupervisorsisdeterminedinaccordancewiththeCompany'semployeeremunerationmanagementmeasures.Remunerationofdirectors,supervisorsandseniorofficersoftheCompanyduringthereportingperiod

Unit:RMB'0,000

Name

Name	Gender	Age	Title	Employmentstatus	TotalcompensationbeforetaxreceivedfromtheCompany	WhethergetpaidfromrelatedpartiesofCOOEC
ZhangXuhua	Male	48	Chairman	Incumbent	206.47	No
WangBo	Male	46	Director	Incumbent	0	Yes
LiPeiyin	Male	39	Director	Incumbent	0	Yes
DengJianghu	Male	41	Director	Incumbent	0	Yes
GuoGaohang	Male	38	Director	Incumbent	0	Yes
PanBo	Male	49	Managingdirector	Incumbent	182.92	No
WangSusheng	Male	56	Independentdirector	Incumbent	2.86	No
WangWenbo	Male	43	Independentdirector	Incumbent	2.86	No
CaoGuangzhong	Male	57	Independentdirector	Incumbent	2.86	No
HuMin	Female	40	ChairmanoftheBoardofSupervisors	Incumbent	0	Yes
YuanTianbo	Male	45	Supervisor	Incumbent	0	Yes
HuJing	Female	54	Employeesupervisor	Incumbent	43.19	No
LuWanjun	Male	58	Deputygeneralmanagerandgeneralcounsel	Incumbent	182.38	No
LiuXiaoming	Male	54	Deputygeneralmanager	Incumbent	229.38	No
LiMing	Male	52	Deputygeneralmanager	Incumbent	175.99	No
SongYaoming	Male	58	ChiefaccountantandsecretaryofBoardofDirectors	Incumbent	180.76	No
TangHaiyuan	Male	52	Deputygeneralmanager	Incumbent	178.97	No
XiaoYi	Male	51	Director	Resigned	0	Yes
WangJianxin	Male	55	Independentdirector	Resigned	5.39	No
ZhongHongming	Male	50	Independentdirector	Resigned	5.39	No
TangXiaofei	Male	51	Independentdirector	Resigned	5.39	No
Total	--	--	--	--	1,404.81	--

OthercircumstancesNotapplicable

VI.Dutyfulfillmentofthedirectorsduringthereportingperiod

1.InformationontheBoardofDirectorsduringthereportingperiod

Session

Session	Dateofmeeting	Disclosuredate	Resolutionsmadeatthemeeting
The17thmeetingofthe10thBoardofDirectors	Jan.4,2024	January6,2024	Fordetails,pleaserefertotheAnnouncementonthe17thMeetingofthe10thBoardofDirectors2024-002disclosedbytheCompanyontheCNINFOwebsite.
The18thmeetingofthe10thBoardofDirectors	March12,2024	Mar.14,2024	Fordetails,pleaserefertotheAnnouncementonthe18thMeetingofthe10thBoardofDirectors2024-006disclosedbytheCompanyontheCNINFOwebsite.
The19thmeetingofthe10thBoardofDirectors	April23,2024	April25,2024	Fordetails,pleaserefertotheAnnouncementonthe19thMeetingofthe10thBoardofDirectors2024-018disclosedbytheCompanyontheCNINFOwebsite.
The20thmeetingofthe10thBoardofDirectors	August19,2024	August21,2024	Fordetails,pleaserefertotheAnnouncementonthe20thMeetingofthe10thBoardofDirectors2024-024disclosedbytheCompanyontheCNINFOwebsite.
Thefirstmeetingofthe11thBoardofDirectors	September6,2024	September7,2024	Fordetails,pleaserefertotheAnnouncementonthe1stMeetingofthe11thBoardofDirectors2024-035disclosedbytheCompanyontheCNINFOwebsite.
Thesecondmeetingofthe11thBoardofDirectors	October24,2024	October26,2024	DeliberateandadopttheThirdQuarterlyReportin2024atthemeeting
Thethirdmeetingofthe11thBoardofDirectors	November7,2024	November9,2024	Fordetails,pleaserefertotheAnnouncementonthe3rdMeetingofthe11thBoardofDirectors2024-040disclosedbytheCompanyontheCNINFOwebsite.
Thefourthmeetingofthe11thBoardofDirectors	December30,2024	January2,2025	Fordetails,pleaserefertotheAnnouncementonthe4thMeetingofthe11thBoardofDirectors2025-001disclosedbytheCompanyontheCNINFOwebsite.

2.Attendanceofdirectorsatboardmeetingsandgeneralmeetings

Attendanceofdirectorsatboardmeetingsandgeneralmeetings
Nameofdirectors	Numberofboardmeetingstobeattendedduringthereporting	Numberofboardmeetingsattendedonsite	Numberofboardmeetingsattendedbycommunication	Numberofboardmeetingsattendedbyauthorizedperson	Absencesatboardmeetings	Failedtoattendboardmeetingsinpersonfortwoconsecutivetimes	Numberofgeneralmeetingsattended

period

	period					(Yes/No)
ZhangXuhua	8	3	5	0	0	No	3
WangBo	4	1	3	0	0	No	0
LiPeiyin	8	2	6	0	0	No	0
DengJianghu	8	2	6	0	0	No	0
GuoGaohang	8	4	4	0	0	No	0
PanBo	8	4	4	0	0	No	0
WangSusheng	4	1	3	0	0	No	1
WangWenbo	4	1	3	0	0	No	1
CaoGuangzhong	4	1	3	0	0	No	1
XiaoYi(resigned)	4	3	1	0	0	No	0
WangJianxin(resigned)	4	3	1	0	0	No	2
ZhongHongming(resigned)	4	3	1	0	0	No	2
TangXiaofei(resigned)	4	3	1	0	0	No	2

DescriptionofthefailuretoattendtheboardmeetingsinpersonfortwoconsecutivetimesNotapplicable

3.Thedirectors’objectionstotherelevantmattersDoesthedirectorraiseanyobjectiontotherelevantmattersoftheCompany?No

4.Otherdescriptionsofdutyfulfillmentbythedirectors

WhethertherelevantproposalsfromthedirectorstotheCompanyhavebeenadoptedYesStatementontheadoptionorrejectionofproposalsfromthedirectorstotheCompany

Duringthereportingperiod,theBoardofDirectorsgavefullplaytotheroleof"determiningstrategies,makingdecisionsandpreventingrisks".ThedirectorsoftheCompanyattendedthemeetingsoftheBoardofDirectorsontimeinstrictaccordancewiththeCompanyLaw,theCodeonGovernanceofListedCompaniesandotherlawsandregulationsandtheArticlesofAssociation,diligentlyperformedtheirdutiesandrights,andfullydeliberated,offeredsuggestionsandconscientiouslyvotedontheresolutionsoftheBoardofDirectors.TheCompanyfullyconsideredandadoptedtheconstructiveopinionsputforwardbythedirectorsintermsofdevelopmentstrategy,businessdecision-makingandinternalcontrolmanagement.

VII.Specialcommitteesundertheboardofdirectorsduringthereportingperiod

CommitteeName

CommitteeName	TheBoardofDirectorssession	Memberdescription	Numberofmeetingsheld	Dateofmeeting	Contentofthemeeting	Importantcommentsandsuggestionsproposed	Performanceofotherduties	Objections(ifany)
StrategyCommittee(note)	The10th	ChairmanoftheCommittee:ZhangXuhuaMembers:DengJianghu,GuoGaohang,PanBo,andTangXiaofei	1	March12,2024	DeliberateandadopttheworkreportandESGreportoftheBoardofDirectorsfor2023.	Allmembersfullycommunicatedanddiscussedthecorporategovernance,ESGmanagement,developmentplanning,etc.,andsuggestedthattheCompanyshouldcontinuetoimprovethelevelofstandardizedoperation,strengthenriskcontrolmanagement,andcontinuouslyimprovethelevelofscientificandtechnologicalinnovation.
	The11th	ChairmanoftheCommittee:ZhangXuhuaMembers:DengJianghu,GuoGaohang,PanBo,andWangWenbo	1	August19,2024	Deliberateandadopttheproposalondevelopingthedevelopmentplanningmanagementmeasuresandmedium-andlong-termdevelopmentplans.
	Total		2

AuditCommittee

AuditCommittee	The10th	ChairmanoftheCommittee:WangJianxinMembers:LiPeiyin,GuoGaohang,ZhongHongming,andTangXiaofei	3	March12,2024	DeliberateandadopttheAnnualReportin2023,FinalAccountReportin2023,ProfitDistributionin2023,DailyRelatedPartyTransactionEstimationin2024,TotalBankCreditLimitEstimationin2024,andGuaranteeLimitEstimationforSubsidiariesin2024,RenewaloftheAccountingFirm,InternalControlSelf-evaluationReportin2023,InternalAuditReportinQ4,2023,InternalAuditReportin2023,andAssessmentReportonthePerformanceofAccountingFirmsandtheAuditCommittee'sReportonthePerformanceofSupervisionDutiesoverAccountingFirmsin2023.	AllmembersfullycommunicatedanddiscussedtheCompany'sinternalandexternalauditwork,internalcontrolmanagement,annualperformanceofaccountingfirmsandothermatters,andsuggestedthattheCompanyshouldcontinuetoimprovetheinternalcontrolmanagementsystemandstrengthenriskmanagement.
				April23,2024	DeliberateandadopttheQ1reportin2024,theinternalauditreportofQ1in2024andtheinternalcontrolsystemreportin2023.
				August19,2024	Deliberateandadoptthesemi-annualreportin2024andtheinternalauditreportforQ2of2024.
	The11th	ChairmanoftheCommittee:WangSushengMembers:LiPeiyin,GuoGaohang,Wang	3	September6,2024	DeliberateandadopttheproposalontheappointmentofthechiefaccountantandsecretaryoftheBoardofDirectors.
				October25,2024	DeliberateandadopttheQ3

Wenbo,andCaoGuangzhong

		Wenbo,andCaoGuangzhong			reportin2024andtheinternalauditreportofQ3in2024.
		Wenbo,andCaoGuangzhong		November1,2024	Deliberateandadopttheproposalontheproposedchangeofaccountingfirm.	AllmembersheardtheCompany'sproposalonchangingtheaccountingfirmandagreedtosubmitthechangetotheBoardofDirectorsfordeliberation.
		Total	6
Nomination,RemunerationandEvaluationCommittee	The10th	ChairmanoftheCommittee:ZhongHongmingMembers:XiaoYi,GuoGaohang,WangJianxin,andTangXiaofei	3	Jan.4,2024	DeliberateandadopttheproposalontheelectionofmembersofthespecialcommitteesoftheBoardofDirectors.
				March12,2024	DeliberateandadopttheproposalontheremunerationofdirectorsandseniorofficersandtherepurchasingandcancellationofsomeA-sharerestrictedstocksin2023.
				August19,2024	Deliberateandadopttheproposalonthegeneralelectionofnon-independentdirectorsandindependentdirectorsoftheBoardofDirectorsandtherepurchasingandcancellationofsomeA-sharerestrictedstocks.		Allcommitteemembersreviewedthequalificationsofthecandidatesfordirectorsofthe11thBoardofDirectorsoftheCompany,

expressedtheircomments,andagreedtosubmittheproposalstotheBoardofDirectorsfordeliberation.

					expressedtheircomments,andagreedtosubmittheproposalstotheBoardofDirectorsfordeliberation.
The11th	ChairmanoftheCommittee:CaoGuangzhongMembers:WangBo,GuoGaohang,WangWenbo,andWangSusheng	2	September6,2024	Deliberateandadopttheproposalontheelectionofthechairmanandtheappointmentofthegeneralmanager,deputygeneralmanager,generalcounsel,chiefaccountantandsecretaryoftheBoardofDirectors,andsecuritiesaffairsrepresentative.
The11th		2	December30,2024	DeliberateandadopttheproposalontheachievementforliftingtherestrictionconditionsduringthethirdliftingperiodofthePhase-IIrestrictedstockincentiveplan.
	Total	5

Note:Uponthedeliberationandapprovalatthe4thMeetingofthe11thBoardofDirectorsheldbytheCompanyonDecember30,2024,theBoardofDirectorsagreedtoadjustthe"StrategyCommittee"tothe"StrategyandESGCommittee".

VIII.WorkoftheBoardofSupervisors

WhethertheBoardofSupervisorsfoundanyriskintheCompanyduringthesupervisionwithinthereportingperiodNoIX.Employees

1.Numberofemployees,disciplinesandeducationalstatus

Numberofin-serviceemployeesoftheparentcompanyattheendofthereportingperiod(person)

Numberofin-serviceemployeesoftheparentcompanyattheendofthereportingperiod(person)	204
Numberofin-serviceemployeesofmajorsubsidiariesattheendofthereportingperiod(person)	3,446
Totalnumberofin-serviceemployeesattheendofthereportingperiod(person)	3,650
Totalnumberofsalariedemployeesinthecurrentperiod(person)	3,650
Numberofretiredemployeeswhoseexpensesshallbebornebytheparentcompanyandmajorsubsidiaries(person)	0
Professionalcomposition
Professionalcompositioncategory	Numberofeachdiscipline(person)
Productionpersonnel	297
Salespersonnel	2,488
Technicalpersonnel	292
Financialpersonnel	105
Administrativepersonnel	468
Total	3,650
Educationlevel
Educationlevelcategory	Number
Master'sdegreeorabove	84
Undergraduate	740
College	1,162
Belowjuniorcollege	1,664
Total	3,650

2.Remunerationpolicy

Incombinationwiththebusinessdevelopmentplanningandmanagementconditions,theCompany,adheringtothecoreconceptofvaluecreation,hasformulatedtheremunerationpolicyundertheprinciplesofhierarchicalmanagement,budgetcontrol,performanceorientation,efficiencypriority,fairness,positiveincentiveandlong-termplanning,andestablishedasophisticatedcompensationsystembasedontheannualsalaryassessmentsystemforthemiddleandseniorofficers,thepost-performancesalarysystemforemployees,andthesalarysystemforjointproductionandefficiencyofproductionandoperationpersonnel,andtookthefollowingmanagementmeasures:

Payrollmanagement:Carryouttheannualsalarybudgetincombinationwithannualbusinessplanning,comprehensivelyconsiderfactorssuchasmarketsalarylevel,organizationalefficiencyimprovementandtalentteamadjustment,toregulateandcontrolthetotalsalary,andachievethemanagementobjectivesofbenefitorientation,positiveincentive,classificationmanagementanddistributionadjustment;

Classificationandhierarchicalmanagement:Establishadifferentiatedpositionandranksystemaccordingtothecharacteristicsoftheposition,andonthisbasis,setupamatchingstandardizedsalaryframeworkincombinationwiththemarketsituation;

Valueasthekeylink,co-creationandsharing:TheCompanyhasdesignedtheincentivesystemaccordingtotheclosedloopofthevaluechainofvaluecreation,evaluationanddistribution,andestablishedavalueevaluationsystemandreal-timeincentivesystemconsistentwiththestrategicdevelopmentgoals,forminganincentivemechanisminwhichthesalaryisbasedontheCompany'srevenuesandindividualperformance,andtheincrementalsalaryisprioritizedtocorekeypositionsandoutstandingtalents.

3.Trainingplan

TalentistheprimaryproductiveforcedrivingtheCompany'sdevelopment.Consideringthat,theCompanyhasattachedgreatimportancetothedevelopmentandtrainingoftalents.Inordertocultivateahigh-qualitytalentteam,supporttheimplementationoftheCompany'sstrategy,andcreateanorganizationallearningatmosphere,theCompanyhasformulatedtheEmployeeTrainingManagementSystem,establishedasystematicemployeelearningandgrowthsystem,andbuiltanonlinelearningplatform+offlinetrainingcenter,soastoprovideemployeeswithspaceforcontinuousimprovement.Fordetails,pleaserefertoChapter7onemployeetraininganddevelopmentinthe2024Environmental,SocialandGovernance(ESG)ReportdisclosedbytheCompanyonMarch14,2025ontheCNINFOwebsite.

4.Laboroutsourcing

NotapplicableX.Profitdistributionandtheincreaseofsharecapitalbyconvertingcapitalreserves

Formulation,implementationoradjustmentofprofitdistributionpolicies,especiallycashdividendpoliciesduringthereportingperiod

TheCompany'sprofitdistributionplanin2023hasbeendeliberatedandadoptedduringthe18thMeetingofthe10thBoardofDirectorsonMarch12,2024andtheAnnualGeneralMeetingin2023onApril18,2024.ItwasresolvedtodistributecashdividendsofRMB4.00yuan(includingtax)forevery10sharestoallshareholdersaccordingtothetotalsharecapitalontheequityregistrationdate(deductingthesharesinthespecialsecuritiesaccountforrepurchasing)whentheprofitdistributionplanisimplemented,with0bonusshareissued,andnosharecapitalwillbeconvertedfromreserves.

Duringtheperiodfromthedisclosuretotheimplementationofthisequitydistributionplan,9,355,763BsharesintheCompany'sspecialsecuritiesaccountforrepurchasingwerecanceled,andthetotalsharecapitalwasreducedfrom415,219,970sharesto405,864,207shares.Basedonthetotalsharecapitalof405,864,207sharesontheequityregistrationdateoftheprofitdistributionplan,theCompanydistributedcashdividendsofRMB4.00

yuan(includingtax)forevery10sharestoallshareholders,withtheactualtotalamountofcashdividendspayableofRMB162,345,682.80yuan.

TheprofitdistributionplanhasbeenimplementedonJune14,2024.Fordetails,pleaserefertotheAnnouncementontheImplementationofEquityDistributionin2023No.2024-022disclosedbytheCompanyontheCNINFOwebsite.

(II)Specialdescriptionofthecashdividendpolicy

(II)Specialdescriptionofthecashdividendpolicy
WhetheritcomplieswiththeprovisionsoftheArticlesofAssociationortherequirementsoftheresolutionofthegeneralmeeting	Yes
Whetherthecriteriaandratiofordividenddistributionareclearandexplicit	Yes
Whethertherelevantdecision-makingproceduresandmechanismsarecomplete	Yes
Whethertheindependentdirectorshaveperformedtheirdutiesandresponsibilitiesandplayedtheirdueroles	Yes
IftheCompanydistributesnocashdividends,thespecificreasonsandthenextmeasuresforincreasingthereturnlevelofinvestorsshallbedisclosed:	Notapplicable
Whethersmallandmediumshareholdershaveadequateopportunitiestoexpresstheiropinionsanddemands,andwhethertheirlegitimaterightsandinterestshavebeenadequatelyprotected	Yes
Whethertheconditionsandproceduresarecompliantandtransparentincaseofthecashdividendpolicyadjustedorchanged(ifany):	Notapplicable

TheCompanywasprofitableduringthereportingperiodandtheparentcompany'sprofitdistributabletoshareholderswaspositive,butnocashdividenddistributionplanwasproposedNotapplicableProfitdistributionandtheincreaseofsharecapitalbyconvertingcapitalreservesduringthereportingperiod

Numberofbonussharesper10shares(shares)	0
Numberofdividendsper10shares(RMB)(includingtax)	4.00
Equitybaseofdistributionplan(shares)	Totalsharecapitalontheequityrightsregistrationdatewhentheprofitdistributionplanisimplemented
Cashdividends(yuan)(includingtax)	162,305,602.80
Amountofcashdividendsdistributedinotherways(suchassharerepurchasing)(yuan)	0.00
Totalcashdividends(includingothermethods)(yuan)	162,305,602.80
Distributableprofit(yuan)	1,206,072,217.14
Proportionoftotalcashdividends(includingothermethods)intotalprofitdistributionamount	100%
Cashdividendsthistime
Others
Detaileddescriptionofproposalsforprofitdistributionorcapitalreservetransfer
TheCompany'sprofitdistributionplanfor2024hasbeendeliberatedandadoptedatthe5thmeetingofthe11thBoardofDirectorsonMarch12,2025.ItisproposedtodistributecashdividendsofRMB4.00yuan(includingtax)forevery10sharestoallshareholdersaccordingtothetotalsharecapitalontheequityregistrationdatewhentheprofitdistributionplanisimplemented,with0bonusshare,andnosharecapitalwillbeconvertedfromreserves.IfthetotalsharecapitaloftheCompanychangesafterthedisclosureoftheprofitdistributionplanandbeforeitsimplementation,theCompanymayadjustthetotalamountofdistributionatfixeddistributionratio.TheprofitdistributionplanshallbeimplementedafterbeingdeliberatedandadoptedattheGeneralMeeting.

XI.ImplementationoftheCompany'sequityincentiveplan,employeestockownershipplanorotheremployeeincentivemeasures

1.Equityincentive

(1)Phase-IIrestrictedstockincentiveplanTheCompanydecidedtolaunchthePhase-IIRestrictedStockIncentivePlanduringthe23rdMeetingof9thBoardofDirectorsonDecember4,2020,anditsfirstextraordinaryshareholders'meetingof2021onJanuary6.Followingapprovalatthe25thMeetingof9thBoardofDirectorsonJanuary15,2021,theCompanyultimatelygranted7.66millionA-sharerestrictedstocksto135incentiverecipientsatapriceofRMB7.60pershare.ThisgrantwascompletedandlistedonJanuary29,2021.Fordetails,pleaserefertorelevantannouncementsdisclosedonJanuary16,2021ontheCNINFOwebsite.Thespecificimplementationduringthereportingperiodisasfollows:

Uponapprovalatthe18thmeetingofthe10thBoardofDirectorsandthe2023AnnualGeneralMeetingofShareholders,thecompanydecidedtorepurchaseandcancel10,020A-sharerestrictedstocksoriginallygrantedtoaformerincentiverecipientwhohadleftthecompanybutstillheldrestrictedstocksthatwerenotyetreleasedfromlock-up.Fordetails,pleaserefertotherelevantannouncementsofthecompanydisclosedonwww.cninfo.com.cnonMarch14,April19andJuly3,2024.

Upondeliberationandapprovalatthe20thmeetingofthe10thBoardofDirectorsandthefirstextraordinarygeneralmeetingin2024,theCompanydecidedtorepurchaseandcancelthe90,180A-sharerestrictedstocksoriginallygrantedto2formerincentiverecipientsresignedand1formerincentiverecipientdeceased,whichstillheldrestrictedstocksthatwerenotyetreleasedfromlock-up.Fordetails,pleaserefertotherelevantannouncementsofthecompanydisclosedonwww.cninfo.com.cnonAugust21,September7andNovember2,2024.

Upondeliberationandapprovalatthe4thmeetingofthe11thBoardofDirectorsoftheCompany,theconditionsforliftingtherestrictionduringthethirdperiodofthePhase-IIrestrictedstockincentiveplanhavebeenfulfilled,and2,047,420A-sharerestrictedstocksinvolvingtheliftingoftherestrictionhadbeenlistedandcirculatedonFebruary5,2025.Fordetails,pleaserefertotherelevantannouncementsofthecompanydisclosedonwww.cninfo.com.cnonJanuary2andJanuary23,2025.

EquityincentivesobtainedbydirectorsandseniormanagersoftheCompany

Unit:shares

Name

Name	Title	Numberofstockoptionsheldatthebeginningoftheyear	Numberofstockoptionsnewlygrantedduringthereportingperiod	Numberofexercisablesharesduringthereportingperiod	Numberofsharesexercisedduringthereportingperiod	Exercisepriceofsharesexercisedduringthereportingperiod(yuan/share)	Numberofstockoptionsheldattheendoftheperiod	Marketpriceattheendofthereportingperiod(yuan/share)	Numberofrestrictedstocksheldatthebeginningoftheperiod	Numberofsharesunlockedinthecurrentperiod	Numberofrestrictedstocksnewlygrantedduringthereportingperiod	Grantpriceofrestrictedstock(yuan/share)	Numberofrestrictedstocksheldattheendoftheperiod
ZhangXuhua	Chairman	0	0	0	0	0	0	0	0	0	0		0
WangBo	Director	0	0	0	0	0	0	0	0	0	0		0
LiPeiyin	Director	0	0	0	0	0	0	0	0	0	0		0
DengJianghu	Director	0	0	0	0	0	0	0	0	0	0		0
GuoGaohang	Director	0	0	0	0	0	0	0	0	0	0		0
PanBo	Managingdirector	0	0	0	0	0	0	0	50,100	0	0		50,100
WangSusheng	Independentdirector	0	0	0	0	0	0	0	0	0	0		0
WangWenbo	Independentdirector	0	0	0	0	0	0	0	0	0	0		0
CaoGuangzhong	Independentdirector	0	0	0	0	0	0	0	0	0	0		0
LuWanjun	Deputygeneralmanager	0	0	0	0	0	0	0	50,100	0	0		50,100

andgeneralcounsel

	andgeneralcounsel
LiuXiaoming	Deputygeneralmanager	0	0	0	0	0	0	0	50,100	0	0		50,100
LiMing	Deputygeneralmanager	0	0	0	0	0	0	0	50,100	0	0		50,100
SongYaoming	ChiefaccountantandsecretaryofBoardofDirectors	0	0	0	0	0	0	0	0	0	0		0
TangHaiyuan	Deputygeneralmanager	0	0	0	0	0	0	0	50,100	0	0		50,100
XiaoYi	Director(resigned)	0	0	0	0	0	0	0	0	0	0		0
WangJianxin	Independentdirector(resigned)	0	0	0	0	0	0	0	0	0	0		0
ZhongHongming	Independentdirector(resigned)	0	0	0	0	0	0	0	0	0	0		0
TangXiaofei	Independentdirector(resigned)	0	0	0	0	0	0	0	0	0	0		0
Total	--	0	0	0	0	--	0	--	250,500	0	0	--	250,500

AppraisalmechanismandincentivesforseniormanagersInordertoestablishasophisticatedincentiveandrestraintmechanismforseniorofficers,givefullplaytoandmotivatetheirenthusiasm,improvetheoperatingcapacityandeconomicbenefits,andensuretherealizationofthestrategicobjectives,theCompanyhascontinuouslyimprovedthetenuresystemandcontractualmanagementofseniorofficers,assessedoperatingperformancesandobjectivesonanannual/tenurebasis,andpromotedtheimplementationofrigidrewardsandpunishmentsforassessmentresults,reflectingstrongincentivesandhardconstraintsforcompensationpayment,andadheredtoperformanceorientation,toenhanceeffectiveincentivesforaccurateassessment.

2.ImplementationofemployeestockownershipplanNotapplicable

3.OtheremployeeincentivemeasuresNotapplicableXII.Constructionandimplementationofinternalcontrolsystemduringthereportingperiod

1.ConstructionandimplementationofinternalcontrolsystemInordertostrengthentheinternalcontroloftheCompany,promotethestandardizedoperationandhealthydevelopment,andprotectthelegitimaterightsandinterestsofshareholders,theCompanyhasestablishedasophisticatedinternalcontrolsysteminaccordancewiththeCompanyLaw,theSecuritiesLawandotherlawsandregulations,andhaseffectivelyimplementedit.Duringthereportingperiod,theCompanyhadnomajordefectsorimportantdefectsininternalcontrol.

2.Detailsofmajordefectsininternalcontrolfoundduringthereportingperiod

NoXIII.Managementandcontrolofsubsidiariesduringthereportingperiod

Notapplicable

XIV.Internalcontrolevaluationreportorinternalcontrolauditreport

1.Internalcontrolevaluationreport

Disclosuredateoffulltextofinternalcontrolevaluationreport

Disclosuredateoffulltextofinternalcontrolevaluationreport	March14,2025
Disclosureindexoffulltextofinternalcontrolevaluationreport	www.cninfo.com.cn

ProportionoftotalassetsofunitsevaluatedtototalassetsintheCompany'sconsolidatedfinancialstatement

ProportionoftotalassetsofunitsevaluatedtototalassetsintheCompany'sconsolidatedfinancialstatement		100.00%
ProportionofoperatingincomeofunitsevaluatedtotheoperatingincomeintheCompany'sconsolidatedfinancialstatement		100.00%
Defectidentificationcriteria
Type	SectionXFinancialReports		Non-financialreport
Qualitativecriteria	(1)Thedefectinvolvesthefraudofdirectors,supervisorsandseniorofficers;(2)Correctthefinancialstatementsdisclosed;(3)Thecertifiedpublicaccountantfindsthatthereisamaterialmisstatementinthecurrentfinancialstatements,buttheinternalcontrolpersonnelfailtodetectthemisstatementintheprocess;(4)TheCompany'sauditcommitteeandthedisciplineinspectiondepartment/auditandlegaldepartmenthavenoeffectivesupervisionoverinternalcontrol.		(1)Seriousviolationofnationallaws,administrativeregulationsandnormativedocuments;(2)The"ThreeSignificantandOneMajor"mattershavenotgonethroughthecollectivedecision-makingprocedure;(3)Thereisaseriouslossofmanagementandtechnicalpersonnelinkeypositions;(4)ImportantbusinessinvolvingtheCompany'sproductionandoperationlackssystemcontrolorsystemfailureoccurs;(5)Theinternalcontroloverinformationdisclosurefails,causingthattheCompanyispubliclyreprimandedbytheregulatoryauthorities;(6)Theresultsofinternalcontrolevaluation,especiallymajordefectsorsignificantdefects,havenotbeenrectified.
Quantitativecriteria	(1)Majordefect:misstatement≥5%ofprofitbeforetax(2)Significantdefect:1%ofprofitbeforetax≤misstatement<5%ofprofitbeforetax(3)Generaldefect:misstatement<1%ofprofitbeforetax		(1)Majordefect:misstatement≥5%ofprofitbeforetax(2)Significantdefect:1%ofprofitbeforetax≤misstatement<5%ofprofitbeforetax(3)Generaldefect:misstatement<1%ofprofitbeforetax
Numberofmajordefectsinfinancialreports(nos.)	0
Numberofmajordefectsinnon-financialreports(nos.)	0
Numberofsignificantdefectsinthefinancialreport(nos.)	0
Numberofsignificantdefectsinnon-financialreports(nos.)	0

2.Internalcontrolauditreport

Inouropinion,FIYTAmaintainedeffectiveinternalcontroloverfinancialreportinginallmaterialrespectsasatDecember31,2024inaccordancewiththeBasicStandardsforEnterpriseInternalControlandrelevantregulations.

Inouropinion,FIYTAmaintainedeffectiveinternalcontroloverfinancialreportinginallmaterialrespectsasatDecember31,2024inaccordancewiththeBasicStandardsforEnterpriseInternalControlandrelevantregulations.
Disclosureofinternalcontrolauditreport	Disclosure
Disclosuredateoffulltextofinternalcontrolauditreport	March14,2025
Disclosureindexoffulltextofinternalcontrolauditreport	www.cninfo.com.cn
Opiniontypeintheinternalcontrolauditreport	Standardunqualifiedopinion
Whethertherearemajordefectsinnon-financialreports	No

Whethertheaccountingfirmissuesanauditreportoninternalcontrolwithnon-standardopinionsNoWhethertheinternalcontrolauditreportissuedbytheaccountingfirmisconsistentwiththeself-evaluationreportoftheBoardofDirectorsYesXV.Statusofrectificationofself-examinationissuesofspecialactionsongovernanceoflistedcompaniesTheCompanyhasfullycompletedtheself-inspectioninaccordancewiththerequirementsoftheAnnouncementonCarryingoutSpecialActionsfortheGovernanceofListedCompaniesissuedbytheCSRC,andrectifiedtheproblemsfoundduringtheself-inspection.ThecorporategovernancemeetstherequirementsoftheCompanyLaw,theSecuritiesLaw,theCodeonGovernanceofListedCompaniesandotherlawsandregulations,thegovernancestructureissophisticatedandtheoperationisstandardized.

Section5Environmentalandsocialresponsibility

I.Majorenvironmentalprotectionissues

WhetherthelistedcompaniesandtheirsubsidiariesclassifiedaskeypollutantdischargingunitsdesignatedbytheMinistryofEnvironmentalProtectionNoAdministrativepenaltiesforenvironmentalissuesduringthereportingperiodNotapplicableRefertootherenvironmentalinformationdisclosedbykeypollutantdischargingunits

TheCompany,abidingbytheLawofthePeople'sRepublicofChinaonthePreventionandControlofAtmosphericPollution,theLawofthePeople'sRepublicofChinaonPreventionofEnvironmentalPollutionCausedbySolidWaste,theLawofthePeople'sRepublicofChinaonPreventionandControlofWaterPollutionandotherlawsandregulations,hasformulatedtheControlProcedureforWastewater,ExhaustGas,DustandNoise,theControlProcedureforWasteManagement,theControlProcedureforChemicalManagementandothersystemdocuments,toclearlyspecifythemanagementmeasuresforpollutantssuchaswastewater,exhaustgas,dust,wasteandnoise,carriedoutthepollutantemissioncontrolinanstandardizedandsystematicmanner,andentrustedanexternalqualifiedagencytomonitorpollutantseveryyear,soastoensurethattheemissionsmeetthestandards.Forthespecificinformation,pleaserefertothe2024Environmental,SocialandGovernance(ESG)Reportdisclosedbythecompanyonwww.cninfo.com.cnonMarch14,2025.(IV)Measurestakentoreduceitscarbonemissionsduringthereportingperiodandtheireffects

TheCompanyhasactivelyrespondedtothecallfor"CarbonPeakandNeutrality"actionandincorporatedtherequirementsintothekeywork.ShenzhenFIYTASTDCo.,Ltd.,asubsidiary,hassetupagreenhousegasmanagementteamtoberesponsiblefortheformulationandimplementationofannualemissionreductiontargets.Theteammemberswillimplementrelevantmeasureswithintheirrespectivepowersandresponsibilities,topromotethetransformationoftheCompanytoagreen,low-carbonandsustainabledirection.ReasonsfornotdisclosingotherenvironmentalinformationNotapplicable

II.Socialresponsibility

Forthespecificinformation,pleaserefertothe2024Environmental,SocialandGovernance(ESG)Reportdisclosedbythecompanyonwww.cninfo.com.cnonMarch14,2025.III.ConsolidateandexpandtheachievementsofpovertyalleviationandruralrevitalizationTheCompanyhasattachedgreatimportancetothechildreneducationandpublicwelfareservices,andactivelypromotedthedevelopmentofchildren'sliteracyeducationtogetherwithShanghaiAdreamCharitableFoundation,andhasbeencommittedtobroadeningthehorizons,brighteningthefutureofmorechildren,andthusfacilitatingthecontinuousprogressofsociety.The"DreamCenter"projecthasbeencommencedandoperatedinGuizhouprovince,Hainanprovince,Jiangxiprovince,Gansuandotherprovinces.Withthe"DreamCenter"project,better

hardwarelearningspaceisprovidedforstudents,regularteachertrainingiscarriedoutandateacherdevelopmentsystemisestablished,effectivelypromotingtheoverallimprovementofeducationandteachingqualityincountiesineconomicallybackwardareas.Duringthereportingperiod,theCompanydonatedRMB200,000yuantoShanghaiAdreamCharitableFoundationtobuilda6.0plus2versionof200,000large-screenmiddleschooldreamcenterinSiyuanExperimentalSchool.Asattheendofthereportingperiod,theCompanyhasdonatedatotalofRMB4,209,800yuanincashandmaterialstoShanghaiAdreamCharitableFoundation,anddonatedatotalof35dreamcentersin12provinces,benefitingatotalof44,021students.

Section6Significantevents

I.Fulfillmentofcommitments

1.Thecompany'sactualcontroller,shareholders,relatedparties,acquirers,andthecompanyitselfcommittedtofulfillingallcommitmentstorelevantpartiesduringthereportingperiod,withanyoutstandingcommitmentsnotfulfilledasoftheendofthereportingperiod.Notapplicable

2.IfthereisaprofitforecastforFiyta'sassetsorprojects,andthereportingperiodisstillintheprofitforecastperiod,FiytaexplainswhethertheassetsorprojectshavemettheoriginalprofitforecastandthereasonsNotapplicableII.Non-operatingoccupationoffundsbycontrollingshareholdersandotherrelatedpartiesoflistedcompaniesNotapplicable

III.ExternalguaranteeinviolationofregulationsNotapplicable

IV.ExplanationoftheBoardofDirectorsonthelatest"non-standardauditreport"NotapplicableV.ExplanationoftheBoardofDirectors,theBoardofSupervisorsandindependentdirectors(ifany)onthe"non-standardauditreport"oftheaccountingfirmduringthereportingperiod

Notapplicable

VI.Changesinaccountingpoliciesandaccountingestimatesorcorrectionsofsignificantaccountingerrorscomparedwiththefinancialreportofthepreviousyear

Notapplicable

VII.Descriptionofchangesinthescopeofconsolidatedstatementscomparedwiththefinancialreportofthepreviousyear

Notapplicable

VIII.Appointmentanddismissalofaccountingfirms

Accountingfirmcurrentlyemployed

Nameofdomesticaccountingfirm

Nameofdomesticaccountingfirm	RSMChinaCPALLP(SpecialGeneralPartnership)
Remunerationofdomesticaccountingfirm(RMB10,000)	144(ofwhichtheannualreportauditfeeis1.14millionyuan,andtheinternalcontrolauditfeeis300,000yuan)
Consecutiveyearsofauditservicesprovidedbydomesticaccountingfirms	1
NamesofCPAsofthedomesticaccountingfirm	CaiRuxiao,ZhengChaomin,GeHua
Consecutiveyearsofauditservicesprovidedbycertifiedpublicaccountantsofdomesticaccountingfirms	1

WhethertochangetheaccountingfirminthecurrentperiodYesWhethertheaccountingfirmwaschangedduringtheauditperiodNoWhethertheaccountingfirmisreplacedinaccordancewiththereviewandapprovalproceduresYesDetaileddescriptionofthechangeofaccountingfirm

UponthedeliberationandapprovalattheAnnualGeneralMeetingin2023,theCompanyreappointedDahuaCertifiedPublicAccountants(SpecialGeneralPartnership)asthefinancialstatementsandinternalcontrolauditorfor2024.AccordingtotheAdministrativeMeasuresfortheAppointmentofAccountingFirmsbyState-ownedEnterprisesandListedCompaniesandotherprovisions,andincombinationwiththeneedsoftheauditwork,theCompanychangedRSMChinaCPALLP(SpecialGeneralPartnership)asthefinancialstatementandinternalcontrolauditorfor2024afterthedeliberationandapprovalatthethirdmeetingofthe11thBoardofDirectorsandthesecondextraordinarygeneralmeetingin2024.Fordetails,pleaserefertotheAnnouncementonResolutionsofthe18thMeetingofthe10thBoardofDirectors2024-006,AnnouncementonRenewaloftheAccountingFirm2024-011,AnnouncementonResolutionsof2023AnnualGeneralMeetingofShareholders2024-016,AnnouncementofResolutionsofthe3rdMeetingofthe11thBoardofDirectors2024–040,AnnouncementonProposedChangeoftheAccountingFirm2024-042andAnnouncementonResolutionoftheSecondExtraordinaryGeneralMeetingin2024No.2024-044disclosedbytheCompanyonNovember9andNovember29,2024ontheCNINFOwebsite.Employmentofaccountingfirm,financialconsultantorsponsorforinternalcontrolaudit

TheCompanyhiredRSMChinaCPALLP(SpecialGeneralPartnership)astheinternalcontrolauditorin2024,payingtheinternalcontrolauditfeeofRMB300,000yuan.IX.Delistingafterthedisclosureoftheannualreport

Notapplicable

X.Mattersrelatedtobankruptcyandreorganization

NotapplicableXI.SignificantlitigationandarbitrationNotapplicableXII.PenaltiesandrectificationNotapplicableXIII.Integritystatusofthecompanyanditscontrollingshareholdersandactualcontrollers

Notapplicable

XIV.Majorrelated-partytransactions

1.Relatedpartytransactionsrelatedtodailyoperations

Notapplicable

2.Relatedpartytransactionsarisingfromtheacquisitionorsaleofassetsorequities

Notapplicable

3.Relatedpartytransactionsofjointexternalinvestment

Notapplicable

4.Relatedclaimsanddebts

Notapplicable

5.Transactionswithrelatedfinancialcompanies

Depositbusiness

party

Relatedparty	Relationship	Maximumdailydepositlimit(RMB10,000)	Depositinterestraterange	Beginningbalance(RMB10,000)	Amountinthecurrentperiod		Endingbalance(RMB10,000)
					Totaldepositsinthecurrentperiod(RMB10,000)	Totalwithdrawalamountinthecurrentperiod(RMB10,000)
AVICFinance	Controlledbythe	100,000	0.205%-1.25%	46,774	526,380	523,293	49,861

sameultimateparty

Loanbusiness

sameultimateparty

party

Relatedparty	Relationship	Loanlimit(RMB10,000)	Loaninterestraterange	Beginningbalance(RMB10,000)	Amountinthecurrentperiod		Endingbalance(RMB10,000)
					Totalloanamountinthecurrentperiod(RMB10,000)	Totalrepaymentamountinthecurrentperiod(RMB10,000)
AVICFinance	Controlledbythesameultimateparty	80,000	Nothigherthan1YLPRinterestrate	0	0	0	0

Creditgrantingorotherfinancialbusiness

Duringthereportingperiod,thecompany'sdailymaximumassociatedbalanceofdepositsandloanswithAviationIndustryFinancialdidnotexceedthelimitsstipulatedinthefinancialservicesagreement.Additionally,nocreditorotherfinancialtransactionsoccurred.Atthesametime,thecompanyissuedtheRiskAssessmentReportonRelatedDepositsandLoanswithAVICFinanceCo.,Ltd.everysixmonthsinresponsetotheabovematters.

6.TransactionsbetweenfinancialcompaniescontrolledbythecompanyandrelatedpartiesNotapplicable

7.Othermajorrelatedpartytransactions

The18thmeetingofthe10thBoardofDirectors,andthe2023AnnualGeneralMeetingofShareholders,approvedtheproposalregardinganticipatedroutinerelated-partytransactionsfortheyear2024.Duringthereportingperiod,thecumulativetransactionamountofthecompany'srelatedtransactionsrelatingtodailyoperationswaswithintheannualestimatedrange.Fordetails,pleaserefertotheAnnouncementonResolutionsofthe18thMeetingofthe10thBoardofDirectors2024-006,AnnouncementonPredictionofDailyRelatedPartyTransactions2024-009andAnnouncementonResolutionsof2023AnnualGeneralMeetingofShareholders2024-016disclosedbytheCompanyonMarch14andApril19,2024ontheCNINFOwebsite.

Duringthe20thmeetingofthe10thBoardofDirectorsandthe1stExtraordinaryGeneralMeetingin2024,theProposaltoSignAFinancialServicesFrameworkAgreementwithAVICFinanceCo.,Ltd.wasdeliberatedandadopted.Itwasdecidedtoterminatetheoriginalcontractandre-signtheFinancialServicesFrameworkAgreementwithAVICFinanceCo.,Ltd.Fordetails,pleaserefertotheAnnouncementonthe20thMeetingofthe10thBoardofDirectors2024-024,AnnouncementonRelatedPartyTransactionsonSigningaFinancialServiceFrameworkAgreementwithAVICFinanceCo.,Ltd.2024-029andAnnouncementoftheResolutionoftheFirstExtraordinaryGeneralMeetingin2024No.2024-034disclosedbytheCompanyonAugust21andSeptember7,2024ontheCNINFOwebsite.Inquiryrelatedtothedisclosurewebsiteofinterimreportonmajorrelatedtransactions

Nameoftemporaryannouncement

Disclosuredateof

Disclosureofwebsitenamein

provisionalannouncement

	provisionalannouncement	temporaryannouncement
AnnouncementonResolutionsofthe18thMeetingofthe10thBoardofDirectors2024-006	Mar.14,2024	http://www.cninfo.com.cn/
AnnouncementonPredictionofDailyRelatedPartyTransactions2024-009	Mar.14,2024
AnnouncementonResolutionsof2023AnnualGeneralMeetingofShareholders2024-016	April18,2024
Announcementonthe20thMeetingofthe10thBoardofDirectors2024-024	August21,2024
AnnouncementonRelatedPartyTransactionsonSigningaFinancialServiceFrameworkAgreementwithAVICFinanceCo.,Ltd.2024-029	August21,2024
AnnouncementoftheResolutionoftheFirstExtraordinaryGeneralMeetingin2024No.2024-034	September7,2024

XV.Majorcontractsandperformancethereof

1.Trusteeship,contractingandleasingmatters

(1)TrusteeshipNotapplicable

(2)ContractingNotapplicable

(3)LeasingNotapplicable

2.Majorguarantee

Unit:RMB'0,000

Externalguaranteesprovidedbythecompanyanditssubsidiaries(excludingguaranteesprovidedtosubsidiaries)
Nameofguaranteeobject	Announcementdisclosuredaterelatedtoguaranteelimit	Guaranteelimit	Actualdate	Actualguaranteedamount	Typeofguarantee	Collateral(ifany)	Counter-guarantee(ifany)	Guaranteeperiod	Whethertheperformancehasbeencompleted	Whethertoguaranteeforarelatedparty
Notapplicable
Totalamountofexternalguaranteeapprovedduringthereporting		0		Totalactualamountofexternalguaranteeduringthereporting		0

period(A1)

period(A1)				period(A2)
Totalamountofexternalguaranteeapprovedattheendofthereportingperiod(A3)		0		Totalactualexternalguaranteebalanceattheendofthereportingperiod(A4)		0
GuaranteesofCOOECforsubsidiaries
Nameofguaranteeobject	Announcementdisclosuredaterelatedtoguaranteelimit	Guaranteelimit	Actualdate	Actualguaranteedamount	Typeofguarantee	Collateral(ifany)	Counter-guarantee(ifany)	Guaranteeperiod	Whethertheperformancehasbeencompleted	Whethertoguaranteeforarelatedparty
ShenzhenShenzhenHarmonyWorldWatchCentreCo.,Ltd.	Mar.14,2024	30,000	December30,2024	10,000	Jointandseveralliabilityguarantee			1year	No	No
Totalamountofguaranteesapprovedforsubsidiariesduringthereportingperiod(B1)		60,000		Totalactualamountofguaranteesprovidedtosubsidiariesduringthereportingperiod(B2)		10,000
Totalapprovedguaranteelimitforsubsidiariesattheendofthereportingperiod(B3)		60,000		Totalactualguaranteebalanceforsubsidiariesattheendofthereportingperiod(B4)		10,000
Guaranteesprovidedbysubsidiariestosubsidiaries
Nameofguaranteeobject	Announcementdisclosuredaterelatedtoguaranteelimit	Guaranteelimit	Actualdate	Actualguaranteedamount	Typeofguarantee	Collateral(ifany)	Counter-guarantee(ifany)	Guaranteeperiod	Whethertheperformancehasbeencompleted	Whethertoguaranteeforarelatedparty
Notapplicable

Totalamountofguaranteesapprovedforsubsidiariesduringthereportingperiod(C1)

Totalamountofguaranteesapprovedforsubsidiariesduringthereportingperiod(C1)	0	Totalactualamountofguaranteesprovidedtosubsidiariesduringthereportingperiod(C2)	0
Totalapprovedguaranteelimitforsubsidiariesattheendofthereportingperiod(C3)	0	Totalactualguaranteebalanceforsubsidiariesattheendofthereportingperiod(C4)	0
Totalamountofcorporateguarantees(i.e.thetotalofthetopthreeitems)
Totalamountofguaranteeapprovedduringthereportingperiod(A1+B1+C1)	60,000	Totalactualamountofguaranteeduringthereportingperiod(A2+B2+C2)	10,000
Totalapprovedguaranteelimitattheendofthereportingperiod(A3+B3+C3)	60,000	Totalactualguaranteebalanceattheendofthereportingperiod(A4+B4+C4)	10,000
Theproportionofactualtotalamountofguarantee(i.e.A4+B4+C4)inthecompany'snetassets		2.95%
Including:
Balanceofguaranteesprovidedtoshareholders,actualcontrollersandtheirrelatedparties(D)		0
Balanceofdebtguaranteedirectlyorindirectlyprovidedtotheguaranteedobjectwiththeasset/liabilityratioexceeding70%(E)		0
Totalamountofguaranteeexceeding50%ofnetassets(F)		0
Totalamountoftheabovethreeguarantees(D+E+F)		0
Fortheunexpiredguaranteecontract,theguaranteeliabilityoccurredorthereisevidenceshowingthatitispossibletoassumejointandseveralliabilityduringthereportingperiod(ifany)		Notapplicable
Descriptionofexternalguaranteeprovidedinviolationofprescribedprocedures(ifany)		Notapplicable

Specificdescriptionofthecompositeguarantee

Notapplicable

3.Entrustmentofothersforcashassetmanagement

(1)EntrustedwealthmanagementNotapplicable

(2)EntrustedloansNotapplicable

4.OthermajorcontractsNotapplicableXVI.Explanationofothersignificantmatters(I)Repurchaseofaportionofdomesticlistedforeignshares(B-shares)TheCompany's11thmeetingofthe10thBoardofDirectorsandthe2022AnnualGeneralMeetingofShareholdersapprovedthePlanfortheRepurchaseofaPortionofDomesticListedForeignShares(B-shares),andsubsequentlydisclosedtherepurchasereportandaseriesofprogressannouncementsinaccordancewithrelevantregulations.AsofApril25,2024,theimplementationoftherepurchaseplanhasbeencompleted,andtherepurchased9,355,763B-shareshavebeencanceledonMay10,2024.Fordetailedinformation,pleaserefertothecompany'sannouncements"AnnouncementontheExpirationandImplementationResultsoftheRepurchaseofCertainDomesticallyListedForeignShares(BShares)2024-020"and"AnnouncementontheCompletionoftheCancellationofRepurchasedDomesticallyListedForeignShares(BShares)andShareChanges2024-021,"disclosedonCNINFOonApril26,2024,andMay14,2024,respectively.

(II)GeneralelectionoftheBoardofDirectorsandtheBoardofSupervisorsandappointmentofseniorofficersUponthedeliberationandapprovalatthe20thmeetingofthe10thBoardofDirectors,the18thmeetingofthe10thBoardofSupervisorsandthe2ndExtraordinaryGeneralMeetingin2024,theCompanyelectedthedirectorsofthe11thBoardofDirectorsandtheshareholderrepresentativesupervisorsofthe11thBoardofSupervisors;Uponthedeliberationandapprovalatthe5thCongressofWorkersandStaffofthe5thSession,theCompanyelectedtheemployeerepresentativesupervisorofthe11thBoardofSupervisors.Fordetails,pleaserefertotheAnnouncementontheGeneralElectionoftheBoardofDirectors2024-027,theAnnouncementontheGeneralElectionoftheBoardofSupervisors2024-028andtheAnnouncementontheGeneralElectionofEmployeeRepresentativeSupervisors2024-033disclosedbytheCompanyonAugust21andAugust27,2024ontheCNINFOwebsite.

Uponthedeliberationandapprovalatthefirstmeetingofthe11thBoardofDirectorsandthefirstmeetingofthe11thBoardofSupervisors,theCompanycompletedtheelectionofthechairmanoftheBoardofDirectors,theappointmentofseniorofficersandtheelectionofchairmanoftheBoardofSupervisors.Fordetails,pleaserefertotheAnnouncementontheCompletionofGeneralElectionoftheBoardofDirectorsandtheBoardofSupervisorsandtheAppointmentofSeniorOfficersdisclosedbytheCompanyonSeptember7,2024ontheCNINFOwebsite.

(III)AdjustmentoftheStrategyCommitteeoftheBoardofDirectorsandrevisionofrelevantsystems

Inordertomeettheneedsofthestrategicdevelopment,improvetheCompany'sESGmanagementlevel,andimprovetheESGmanagementsystem,theBoardofDirectorsagreedtoadjustthe"StrategyCommittee"tothe"StrategyandESGCommittee"uponthedeliberationandapprovalatthefourthmeetingofthe11thBoardofDirectors,andaddedESGmanagement-relatedresponsibilitiesonthebasisoftheoriginaldutiesoftheStrategyCommittee.Meanwhile,therelevantprovisionsoftheDetailedRulesfortheImplementationofSpecialCommitteesoftheBoardofDirectorswererevised,andtheESGManagementSystemwasformulated.Fordetails,pleaserefertotheAnnouncementonAdjustingtheStrategyCommitteeoftheBoardofDirectorstotheStrategyandESGCommitteeoftheBoardofDirectorsandthefulltextofrelevantsystemsdisclosedbytheCompanyonJanuary2,2025ontheCNINFOwebsite.

XVII.Majoreventsofthecompany'ssubsidiaries

Notapplicable

Section7ChangesinsharesandshareholdersI.Changesinshares

1.Changesinshares

Unit:shares

Beforethischange

	Beforethischange		Increase/decreaseinthischange(+,-)					Afterthischange
	Number	Ratio	IPO	Sharedonation	Capitalconversionofprovidentfunds	Others	Sub-total	Number	Ratio
I.Restrictedshares	2,729,860	0.66%	0	0	0	-254,140	-254,140	2,475,720	0.61%
1.State-ownedshares	0	0.00%	0	0	0	0	0	0	0.00%
2.State-ownedlegalpersonshareholding	0	0.00%	0	0	0	0	0	0	0.00%
3.Otherdomesticshareholding	2,729,860	0.66%	0	0	0	-254,140	-254,140	2,475,720	0.61%
Including:domesticlegalpersonshareholding	0	0.00%	0	0	0	0	0	0	0.00%
Domesticnaturalpersonshareholding	2,729,860	0.66%	0	0	0	-254,140	-254,140	2,475,720	0.61%
4.Foreignsharehol	0	0.00%	0	0	0	0	0	0	0.00%

ding

ding
Including:overseaslegalpersonshareholding	0	0.00%	0	0	0	0	0	0	0.00%
Overseasnaturalpersonsshareholding	0	0.00%	0	0	0	0	0	0	0.00%
II.Non-restrictedshares	412,490,110	99.34%	0	0	0	-9,201,823	-9,201,823	403,288,287	99.39%
1.RMBordinaryshares	362,553,413	87.31%	0	0	0	153,940	153,940	362,707,353	89.39%
2.Domesticlistedforeignshares	49,936,697	12.03%	0	0	0	-9,355,763	-9,355,763	40,580,934	10.00%
3.Overseaslistedforeignshares	0	0.00%	0	0	0	0	0	0	0.00%
4.Others	0	0.00%	0	0	0	0	0	0	0.00%
III.Totalnumberofshares	415,219,970	100.00%	0	0	0	-9,455,963	-9,455,963	405,764,007	100.00%

Reasonsforchangeinshares

1.Duringthereportingperiod,duetotheadjustmentofthetransferablequotaforseniormanagement,153,940shareswithsalesrestrictionswerereduced(correspondingtoanincreaseinunrestrictedshares,withthetotalcapitalstockremainingunchanged).

2.Duringthereportingperiod,duetotheresignationof3formerincentiverecipientandthedeathof1formerincentiverecipientinthePhase-IIrestrictedstockincentiveplan,theCompanyrepurchasedandcanceledthe100,200A-sharerestrictedstocksheldbythemintotalaccordingtoregulations,andreducedtherestrictedstocksby100,200sharesintotal(totalsharecapitaldecreased);

3.Duringthereportingperiod,asthecompanycompletedtheimplementationoftherepurchaseplanforcertaindomesticallylistedforeignshares(Bshares),therepurchasedBshareswerecanceled,reducing9,355,763unrestrictedshares(totalcapitalstockdecreased).

Inviewoftheabovereasons,attheendofthereportingperiod,thetotalsharecapitalofthecompanydecreasedby9,455,963shares,andthetotalsharecapitaldecreasedfrom415,219,970sharesto405,764,007shares.

Approvalofchangeinshares

Upontheauthorizationandapprovalofthecompany's2022annualgeneralmeetingofshareholders,thecompanycanceledtherepurchased9,355,763Bshares.

Upontheapprovalattheannualgeneralmeetingin2023andthefirstextraordinarygeneralmeetingin2024,theCompanyrepurchasedandcanceledatotalof100,200A-sharerestrictedstocks.TransferofchangeinsharesDuringthereportingperiod,asreviewedandconfirmedbyChinaSecuritiesDepositoryandClearingCorporationLimited(CSDC)ShenzhenBranch,thechangesinshareswereasfollows:

OnMay10,2024,9,355,763Bshareswerecanceled;OnJuly1,2024,the10,020A-sharerestrictedstockswererepurchasedandcanceled;OnOctober31,2024,90,180A-sharerestrictedstockswererepurchasedandcanceled.Theimpactofthesharechangesonfinancialindicatorssuchasbasicearningspershareanddilutedearningspershareforthemostrecentyearandperiod,aswellasnetassetspershareattributabletothecompany'sordinaryshareholders,isasfollows:

Financialindicators

Financialindicators	2024		2023
Financialindicators	Beforethechangeinshares	Afterthechangeofshares	Beforethechangeinshares	Afterthechangeofshares
Basicearningspershare(yuan/share)	0.5314	0.5385	0.8082	0.8272
Dilutedearningspershare(yuan/share)	0.5307	0.5378	0.8075	0.8265
Netassetvaluepershare(RMB/share)attributabletoordinaryshareholdersofthecompany.	8.17	8.36	8.03	8.22

4.OthercontentthatCOOECdeemsnecessaryorrequiredtobedisclosedbysecuritiesregulatorsNotapplicable

2.Changesinrestrictedshares

Unit:shares

Shareholder'sname	Numberofrestrictedsharesatthebeginningoftheperiod	Numberofrestrictedsharesincreasedinthecurrentperiod(Note1)	Numberofrestrictedsharesreleasedinthecurrentperiod(Note2)	Numberofrestrictedsharesattheendoftheperiod	Reasonforrestrictedsales	Dateofrestrictedsalesreleased
LiMing	160,080	0	40,013	120,067	Executivelocked-insharesandunlockedrestrictedshares	Unlockinaccordancewiththe

relevantlawsandregulationsonlockingsharesbyseniorexecutives.

						relevantlawsandregulationsonlockingsharesbyseniorexecutives.
PanBo	160,050	12,487	0	172,537	Executivelocked-insharesandunlockedrestrictedshares	-
LuWanjun	160,050	0	40,013	120,037	Executivelocked-insharesandunlockedrestrictedshares	Unlockinaccordancewiththerelevantlawsandregulationsonlockingsharesbyseniorexecutives.
LiuXiaoming	160,050	0	40,013	120,037	Executivelocked-insharesandunlockedrestrictedshares	Unlockinaccordancewiththerelevantlawsandregulationsonlockingsharesbyseniorexecutives.
TangHaiyuan	107,550	0	26,888	80,662	Executivelocked-insharesandunlockedrestrictedshares	Unlockinaccordancewiththerelevantlawsandregulationsonlockingsharesbyseniorexecutives.
ChenLibin	60,120	-60,120	0	0	Unlockedrestrictedshares	-
BaoXianyong	40,080	0	0	40,080	Unlockedrestrictedshares	-
SunLei	40,080	0	0	40,080	Unlockedrestrictedshares	-
ShengLi	40,080	0	0	40,080	Unlockedrestrictedshares	-
Othershareholders	1,801,720	-40,080	19,500	1,742,140	Lockedsharesandunlockedrestrictedsharesofsupervisorsandoutgoingexecutives	Unlockinaccordancewiththerelevantlawsandregulationsonlockingsharesby

seniorexecutives.

						seniorexecutives.
Total	2,729,860	-87,713	166,427	2,475,720	--	--

Note:1.Reasonsforchangesinthenumberofrestrictedsharesincreasedinthecurrentperiod:

(1)Atthebeginningoftheperiod,thetransferablequotaforseniormanagementwasadjusted,andtherestrictedsharesheldbyseniormanagement(Mr.PanBo)increasedby12,487shares;

(2)The100,200restrictedsharesthathavebeenrepurchasedandcanceledduringthereportingperiodaredeductedfromthisitem,including60,120sharesheldbyMr.ChenLibin,theformerincentiverecipient,and40,080sharesheldbyother3formerincentiverecipientsintotal.

2.Reasonforchangesinthenumberofunrestrictedsharesinthecurrentperiod:adjustmentoftransferablequotasforseniormanagementatthebeginningoftheperiod.

II.Issuanceandlistingofsecurities

1.Securitiesissuance(excludingpreferredshares)duringthereportingperiodNotapplicable

2.DescriptionofchangesinthetotalnumberofsharesandshareholderstructureoftheCompany,andchangesinthestructureofassetsandliabilitiesoftheCompany

Thesameasthatdescribedinthe"Reasonsforchangesinshares".

3.ExistinginternalemployeesharesNotapplicableIII.Shareholdersandactualcontrollers

1.Numberofshareholdersandtheirshareholdingsituationinthecompany

Unit:shares

Totalnumberofordinaryshareholdersasattheendofthereportingperiod

26,316

Totalnumberofordinaryshareholdersattheendofthelatestmonthbeforethedateofdisclosureoftheannualreport

25,508

Totalnumberofpreferredshareholderswhosevotingrightshavebeenrestoredattheendofthereportingperiod(ifany)

Totalnumberofpreferredshareholderswhosevotingrightshavebeenrestoredattheendofthepreviousmonthpriortothedisclosuredateoftheannualreport(ifany)

Shareholdersholdingmorethan5%stockorthetop10stockshareholders'shareholdingdetails(excludingshareslentthroughrefinancing)

Shareholde

Nature

Shareh

Numberof

Increase/d

Number

Numberof

Pledged,tagged

r'sname

r'sname		oldingRatio	sharesheldattheendofthereportingperiod	ecreaseduringthereportingperiod	ofrestrictivestocksheld	non-restrictivestocksheld	orfrozen
r'sname		oldingRatio	sharesheldattheendofthereportingperiod	ecreaseduringthereportingperiod	ofrestrictivestocksheld	non-restrictivestocksheld	Status	Number
AVICInternationalHoldingLimited	State-ownedlegalperson	40.17%	162,977,327	0	0	162,977,327	Notapplicable	0
#WuJilin	Domesticnaturalperson	4.43%	17,972,441	-71,186	0	17,972,441	Notapplicable	0
XuGuoliang	Domesticnaturalperson	1.39%	5,659,968	-1,582,800	0	5,659,968	Notapplicable	0
QiuHong	Domesticnaturalperson	0.62%	2,510,000	40,000	0	2,510,000	Notapplicable	0
#ZhuRui	Domesticnaturalperson	0.53%	2,149,400	742,300	0	2,149,400	Notapplicable	0
604PortfolioofNationalSocialSecurityFund	Others	0.41%	1,676,300	1,178,800	0	1,676,300	Notapplicable	0
SWSMUFund-ChinaEverbrightBank-SWSMUChanghongNo.1CollectiveAssetManagementPlan	Others	0.41%	1,658,000	1,658,000	0	1,658,000	Notapplicable	0
IndustrialandCommercialBankofChinaLimited-GFZZGXCentralGovernment-ownedEnterpriseShareholderReturnTradingOpen-EndedIndexSecuritiesInvestment	Others	0.36%	1,457,500	244,800	0	1,457,500	Notapplicable	0

Fund

Fund
#WangXing	Domesticnaturalperson	0.34%	1,387,800	566,400	0	1,387,800		Notapplicable		0
#QuYongjie	Domesticnaturalperson	0.31%	1,271,900	-14,900	0	1,271,900		Notapplicable		0
Strategicinvestorsorlegalpersonsbecomingthetoptenshareholdersduetoplacementofnewshares(ifany)		Notapplicable
Notestoshareholders'relatedrelationshiporpersonsactinginconcert		TheCompanydoesnotknowwhethertheabove10shareholdersarerelatedoractinconcert.
Descriptionoftheaboveshareholders'involvementinthecommissioned/entrustedvotingrightsandwaiverofvotingrights		Theshareholder,AVICInternationalHoldingsLimited,authorizedarepresentativetoexercisevotingrightsonbehalfoftheCompanyatthe2023annualgeneralmeetingofshareholders,the1stextraordinarygeneralmeetingin2024andthe2ndextraordinarygeneralmeetingin2024,representing162,977,327shares.Fordetailsofthevotingresults,pleaserefertotherelevantannouncementsissuedbytheCompanyontheCNINFOwebsite.
Specialinstructionsontheexistenceofspecialrepurchaseaccountsamongthetop10shareholders(ifany)		Notapplicable
Shareholdingofthetop10non-restrictiveshareholders(excludingshareslentthroughrefinancingandshareslockedbyseniormanagement)
Shareholder'sname			Numberofnon-restrictedstockheldattheendofthereportingperiod				Classofshares
							Classofshares		Number
AVICInternationalHoldingLimited			162,977,327				RMBcommonshare		162,977,327
#WuJilin			17,972,441				RMBcommonshare		17,972,441
XuGuoliang			5,659,968				RMBcommonshare		5,659,968
QiuHong			2,510,000				RMBcommonshare		2,510,000
#ZhuRui			2,149,400				RMBcommonshare		2,149,400
604PortfolioofNationalSocialSecurityFund			1,676,300				RMBcommonshare		1,676,300
SWSMUFund-ChinaEverbrightBank-SWSMUChanghongNo.1CollectiveAssetManagementPlan			1,658,000				RMBcommonshare		1,658,000
IndustrialandCommercialBankofChinaLimited-GFZZGXCentralGovernment-ownedEnterpriseShareholderReturnTradingOpen-EndedIndexSecuritiesInvestmentFund			1,457,500				RMBcommonshare		1,457,500
#WangXing			1,387,800				RMBcommonshare		1,387,800
#QuYongjie			1,271,900				RMBcommon		1,271,900

		share
Explanationoftherelationshiporconcertedactionsbetweenthetop10holdersofunrestrictedcirculationstockandthatbetweenthetop10holdersofunrestrictedcirculationstockandthetop10shareholders.	TheCompanydoesnotknowwhethertheabove10shareholdersarerelatedoractinconcert.
Explanationofthetop10commonstockshareholders'participationinsecuritiesmargintrading(ifany)	1.Inadditiontoholding8,288,277sharesthroughtheordinarysecuritiesaccount,WuJilin,theshareholderofthecompany,alsoholds9,684,164sharesthroughtheclientcredittradingguaranteesecuritiesaccountofCICCWealthManagementholding17,972,441sharesintotal;2.Inadditiontoholding172,600sharesthroughtheordinarysecuritiesaccount,ZhuRui,theshareholderofthecompany,alsoholds1,976,800sharesintheclientcredittradingguaranteesecuritiesaccountofFirstCapitalSecuritiesCo.,Ltd.,holdingatotalof2,149,400shares;3.Inadditiontoholding932,500sharesthroughtheordinarysecuritiesaccount,WangXing,theshareholderofthecompany,alsoholds455,300sharesthroughthecustomercredittradingguaranteesecuritiesaccountofChinaMerchantsSecuritiesco.Ltd.(CMS),holdingatotalof1,387,800share;4.Inadditiontoholding44,500sharesthroughtheordinarysecuritiesaccount,QuYongjie,ashareholderoftheCompany,alsoheld1,227,400sharesthroughtheguaranteedsecuritiesaccountforcustomercredittradingguaranteesecuritiesaccountofShanxiSecuritiesCo.,Ltd.,holdingatotalof1,271,900shares;

Participationofshareholdersholdingmorethan5%oftheshares,toptenshareholders,andtoptenshareholderswithunlimitedtradablesharesinthelendingofsharesthroughtherefinancingbusinessNotapplicableThetoptenshareholdersandthetoptenshareholderswithunlimitedtradableshareshavechangedcomparedtothepreviousperiodduetothereasonsofrefinancing,lending,andrepaymentNotapplicableDidthecompany'stop10commonstockshareholdersandtop10holdersofunrestrictedcommonstockengageinanyagreedrepurchasetransactionsduringthereportingperiodNo

2.ControllingshareholdersNatureofcontrollingshareholder:centralstate-ownedholdingTypeofcontrollingshareholder:legalperson

Nameofcontrollingshareholder	Legalrepresentative/organizationprincipal	Dateofestablishment	Organizationcode	Mainoperatingbusiness
AVICInternationalHoldingLimited	LiBin	June20,1997	91440300279351229A	Investmentandindustry(declaredseparatelyforspecificitems);Domesticcommercialandmaterialsupplyandmarketingindustry(excludingfranchise,

commodityunderspecialgovernmentcontrolandmonopolizedcommodities);Operationofimportandexportbusiness(exceptforitemsprohibitedbylaws,administrativeregulationsanddecisionsoftheStateCouncil,andrestricteditemsshallnotbeoperatedwithoutpermission).

		commodityunderspecialgovernmentcontrolandmonopolizedcommodities);Operationofimportandexportbusiness(exceptforitemsprohibitedbylaws,administrativeregulationsanddecisionsoftheStateCouncil,andrestricteditemsshallnotbeoperatedwithoutpermission).
Equitystatusofotherdomesticandforeignlistedcompaniesthatthecontrollingshareholdercontrolsandparticipatesinduringthereportingperiod	AVICInternationalHoldingLimitedholdsan11.86%stakeinTianmaMicroelectronicsCo.,Ltd.(ShenzhenTianma000050)anda63.97%stakeinShennanCircuitsCo.,Ltd.(ShennanCircuits002916).

ChangesincontrollingshareholdersduringthereportingperiodNotapplicable

3.ActualcontrolleroftheCompanyanditspersonsactinginconcertNatureofactualcontroller:centralstate-ownedassetsmanagementagencyTypeofactualcontroller:legalperson

Nameofactualcontroller	Legalrepresentative/organizationprincipal	Dateofestablishment	Organizationcode	Mainoperatingbusiness
AviationIndustryCorporationofChina,LTD.	ZhouXinmin	November6,2008	91110000710935732K	Operatingstate-ownedassetswithinthescopeauthorizedbytheStateCouncil;Research,design,development,testing,production,sales,maintenance,supportandserviceofmilitaryaircraftandengines,guidedweapons,militarygasturbines,weaponequipmentsupportingsystemsandproducts;Investmentandmanagementinfinance,leasing,generalaviationservices,transportation,medicaltreatment,engineeringsurveyanddesign,engineeringcontractingandconstruction,realestatedevelopmentandotherindustries;Design,research,development,testing,production,salesand

maintenanceservicesofcivilaircraftandengines,airborneequipmentandsystems,gasturbines,automobilesandmotorcyclesandengines(includingparts),refrigerationequipment,electronicproducts,environmentalprotectionequipmentandnewenergyequipment;equipmentleasing;engineeringsurveyanddesign;projectcontractingandconstruction;realestatedevelopmentandoperation;technologytransferandtechnicalservicesrelatedtotheabovebusiness;importandexportbusiness;technicaldevelopmentandsalesofships;technicaldevelopmentofengineeringequipment;technicaldevelopmentofnewenergyproducts(Theenterprisemaychooseandconductbusinessindependentlyinaccordancewiththelaw;themarketentitymayengageinsuchbusinessonlyafterbeingapprovedbyrelevantauthorities.ThemarketentitymustnotengageinbusinessactivitiesofitemsprohibitedorrestrictedbythisMunicipality'sindustrialpolicies.)

		maintenanceservicesofcivilaircraftandengines,airborneequipmentandsystems,gasturbines,automobilesandmotorcyclesandengines(includingparts),refrigerationequipment,electronicproducts,environmentalprotectionequipmentandnewenergyequipment;equipmentleasing;engineeringsurveyanddesign;projectcontractingandconstruction;realestatedevelopmentandoperation;technologytransferandtechnicalservicesrelatedtotheabovebusiness;importandexportbusiness;technicaldevelopmentandsalesofships;technicaldevelopmentofengineeringequipment;technicaldevelopmentofnewenergyproducts(Theenterprisemaychooseandconductbusinessindependentlyinaccordancewiththelaw;themarketentitymayengageinsuchbusinessonlyafterbeingapprovedbyrelevantauthorities.ThemarketentitymustnotengageinbusinessactivitiesofitemsprohibitedorrestrictedbythisMunicipality'sindustrialpolicies.)
Equityofotherdomesticandoverseaslistedcompaniescontrolledbytheactualcontrollerduringthereportingperiod	InadditiontotheequityoftheCompany,AVICdirectlyorindirectlyholdsandcontrolsthefollowingsharesofdomesticandoverseaslistedcompanies:1.TianmaMicroelectronicsCo.,Ltd.(000050),withashareholdingratioof28%;2.AVICXi'anAircraftIndustryGroupCompanyLtd.(000768.SZ),withashareholdingratioof55%;3.AVICJonhonOptronicTechnologyCo.,Ltd.(002179.SZ),withashareholdingratioof38%;4.SichuanChengfeiIntegrationTechnologyCorp.Ltd.(002190.SZ),withashareholdingratioof51%;5.RainbowDigitalCommercialCo.,Ltd.(002419.SZ),withashareholdingratioof45%;6.AVICChengduAircraftCompanyLimited(302132.SZ),withashareholdingratioof89%;7.AVICOPTERPLC(600038.SH),withashareholdingratioof54%;8.JiangxiHongduAviationIndustryCo.,Ltd.(600316.SH),withashareholdingratioof48%;9.AVICAirborneSystemsCo.,Ltd.(600372.SH),withashareholdingratioof55%;10.GuizhouGuihangAutomotiveComponentsCo.,Ltd.(600523.SH),withashareholdingratioof46%;11.AVICIndustry-FinanceHoldingsCo.,Ltd.(600705.SH),withashareholdingratioof48%;12.AVICShenyangAircraftCompanyLimited(600760.SH),withashareholdingratioof68%;13.AVICHeavyMachineryCo.,Ltd.(600765.SH),withashareholdingratioof37%;14.BaoshengScienceAndTechnologyInnovationCo.,Ltd.(600973.SH),withashareholdingratioof40%;15.AVICAviationHigh-TechnologyCo.,Ltd.(600862.SH),withashareholdingratioof45%;16.ShennanCircuitsCo.,Ltd.(002916.SZ),withashareholdingratioof64%;17.HefeiJianghangAircraftEquipmentCo.,Ltd.(688586.SH),withashareholdingratioof56%;

18.AVIC(Chengdu)UASCo.,Ltd.(688297.SH),withashareholdingratioof52%;

19.AVICFORSTARS&TCo.,Ltd.(835640.BJ),withashareholdingratioof47%;

20.NexteerAutomotiveGroupLtd.(01316.HK),withashareholdingratioof44%;

21.AviChinaIndustry&TechnologyCompanyLimited(02357.HK),withashareholdingratioof60%;

22.ContinentalAerospaceTechnologiesHoldingLimited(00232.HK),withashareholdingratioof46%;

23.KHDHumboldtWedagInternationalAG(KWG:GR),withashareholdingratioof89%;

24.FACCAG(AT00000FACC),withashareholdingratioof55%.

ChangeofactualcontrollerduringthereportingperiodNotapplicableChartforthepropertyandcontrollingrelationshipsbetweenCOOECandtheactualcontrollers

TheactualcontrollercontrolsCOOECbywayoftrustorotherassetmanagementmethodsNotapplicable

4.ThecumulativenumberofsharespledgedbythecontrollingshareholderorthelargestshareholderoftheCompanyandpersonsactinginconcerttherewithaccountedfor80%ofthenumberofsharesheldbytheCompany

Notapplicable

5.Othercorporateshareholdersholdingmorethan10%sharesNotapplicable

6.Restrictionsonshareholdingreductionbycontrollingshareholders,actualcontrollers,restructuringpartiesandothercommitmententities

Notapplicable

IV.Specificimplementationofsharere-purchaseinthereportingperiodImplementationprogressofsharerepurchase

18.AVIC(Chengdu)UASCo.,Ltd.(688297.SH),withashareholdingratioof52%;

19.AVICFORSTARS&TCo.,Ltd.(835640.BJ),withashareholdingratioof47%;

20.NexteerAutomotiveGroupLtd.(01316.HK),withashareholdingratioof44%;

21.AviChinaIndustry&TechnologyCompanyLimited(02357.HK),withashareholdingratioof60%;

22.ContinentalAerospaceTechnologiesHoldingLimited(00232.HK),withashareholdingratioof46%;

23.KHDHumboldtWedagInternationalAG(KWG:GR),withashareholdingratioof89%;

24.FACCAG(AT00000FACC),withashareholdingratioof55%.State-ownedAssetsSupervisionandAdministration

CommissionoftheStateCouncil

State-ownedAssetsSupervisionandAdministration

CommissionoftheStateCouncilAviationIndustryCorporationofChina,LTD.

AviationIndustryCorporationofChina,LTD.AVICInternationalHoldingCorporation

AVICInternationalHoldingCorporation

AVICINNOCo.,Ltd.

AVICInternationalHoldingLimited

AVICInternationalHoldingLimitedFIYTAPrecisionTechnologyCo.,Ltd.

Plandisclosure

time

Plandisclosuretime	Numberofsharestoberepurchased(shares)	Proportionintotalsharecapital	Amounttoberepurchased(RMB10,000)	Proposedrepurchasingperiod	Repurchasingpurpose	Quantityrepurchased(shares)	Proportionofrepurchasedsharesintheunderlyingsharesinvolvedintheequityincentiveplan(ifany)
Mar.18,2023	6.66millionsharesto13.32millionshares	1.59%to3.19%	NolessthanRMB50millionandnogreaterthanRMB100million	April27,2023toApril26,2024	Cancellationandreductionofregisteredcapitalaccordingtothelaw	9,355,763

TheimplementationprogressofthereductionofrepurchasedsharesthroughcentralizedbiddingNotapplicable

Section8Relevantinformationaboutpreferredstock

Notapplicable

Section9Bond-relatedinformation

Notapplicable

Section10FinancialReporting

Auditor’sReport

FIYTAPrecisionTechnologyCo.,Ltd.

RSMSZ[2025]No.350Z0001

RSMCHINACPALLPCHINA·BEIJING

IfthereisanyconflictofmeaningbetweentheChineseandEnglishversions,theChineseversionwill

prevail

Contents

ContentsPage

		Page
1	Auditor’sreport	1-8
2	ConsolidatedStatementofFinancialPosition	1
3	ConsolidatedStatementofProfitorLossandOtherComprehensiveIncome	2
4	ConsolidatedStatementofCashFlows	3
5	ConsolidatedStatementofChangesinOwners'Equity	4
6	StatementofFinancialPositionofParentCompany	5
7	StatementofProfitorLossandOtherComprehensiveIncomeofParentCompany	6
8	StatementofCashFlowsofParentCompany	7
9	StatementofChangesinOwners'EquityofParentCompany	8
10	NotestotheFinancialStatements	9-104

(EnglishTranslationforReferenceOnly)

Auditor’sReport

RSMSZ[2025]No.350Z0001

TotheShareholdersofFIYTAPrecisionTechnologyCo.,Ltd.，OpinionWehaveauditedthefinancialstatementsofFIYTAPrecisionTechnologyCo.,Ltd.(hereafterreferredtoas“theCompany”),whichcomprisestheconsolidatedandtheparentcompany’sstatementoffinancialpositionasat31December2024,theconsolidatedandtheparentcompany’sstatementofprofitorlossandothercomprehensiveincome,theconsolidatedandtheparentcompany’sstatementofcashflows,theconsolidatedandtheparentcompany’sstatementofchangesinequityfortheyearthenended,andthenotestothefinancialstatements.Inouropinion,theaccompanyingtheCompany’sfinancialstatementspresentfairly,inallmaterialrespects,theconsolidatedandthecompany’sfinancialpositionasat31December2024,andoftheirfinancialperformanceandcashflowsfortheyearthenendedinaccordancewithAccountingStandardsforBusinessEnterprises.BasisforOpinionWeconductedourauditinaccordancewithChineseStandardsonAuditing(CSAs).OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeCodeofEthicsforProfessionalAccountantsoftheChineseInstituteofCertifiedPublicAccountants,andwehavefulfilledourotherethicalresponsibilities.Webelievethattheauditevidenceweobtainedissufficientandappropriatetoprovideabasisforouropinion.KeyAuditMatters

Keyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofthemostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.(I)ExistenceandNetRealizableValueofInventory

1.DescriptionsofthematterForthedetails,pleaserefertoNote3.13andNote5.6ofthefinancialstatements.AsstatedinNote5.6,asof31December2024,thecarryingamountoftheCompany'sinventorywasRMB2,057.8734million,withaninventorywrite-downprovisionofRMB73.3864million,resultinginanetinventoryvalueofRMB1,984.487million,accountingfor49.52%oftotalassets.TheCompany'smainbusinessinvolvessellingFIYTAbrandwatchesandotheragency-brandedwatches,withyear-endinventoryprimarilyconsistingoffinishedwatchesandwatchcomponents.Giventhesmallsizeandhighunitvalueofbrandedwatchesandthewidelydispersedinventoryacrosscentralwarehouses,regionalwarehouses,andretailstores,thereisaheightenedriskrelatedtoinventoryexistenceandimpairment.Asofthebalancesheetdate,theCompany'smanagementisrequiredtodeterminethenetrealizablevalue(NRV)ofinventory,andanyexcessofcostoverNRVshouldbewrittendownaccordingly.ThedeterminationofNRVinvolvessignificantmanagementestimatesregardingsellingprices,coststocompletion,sellingexpenses,andrelevanttaxes.Duetothematerialityoftheinventorybalanceandthesignificantaccountingestimatesandjudgmentsinvolvedintheimpairmentprovision,wehaveidentifiedtheexistenceofinventoryandthedeterminationofitsNRVasakeyauditmatter.

2.HowthematterwasaddressedinourauditTheauditproceduresweperformedinrelationtoexistenceandnetrealizablevalueofinventory:

(1)Understanding,evaluating,andtestingthedesignandoperatingeffectivenessof

internalcontrolsrelatedtoprocurementandpayment,productionandwarehousing,andinventorywrite-downprovisions;

(2)UtilizingexpertworktoconductITauditsontheinformationsystemtoevaluatetheauthenticityandaccuracyofbusinessdatarelatedtofinancialreporting;

(3)Performinginventorycountsatselectedwarehousesandretailstorestoverifytheexistenceandconditionofyear-endinventory;

(4)Selectingsamplesofsignificantpurchasesduringthereportingperiodandtracingthemtopurchasecontracts,invoices,purchaserequisitions,andwarehousereceipts;

(5)Sendingconfirmationrequeststoselectedsupplierstoverifytransactionamountsandbalancestoconfirmprocurementdetails;

(6)ReviewingtheCompany’sinventoryimpairmentpolicyandmethodologytoassessitsreasonableness,obtainingmanagement’sinventoryimpairmentcalculation,andevaluatingkeyassumptionssuchasestimatedsellingprices,coststocompletion,sellingexpenses,andrelatedtaxes,alongwithperformingrecalculations;

(7)Obtainingtheyear-endagingreportforinventory,conductinganalyticalreviewsbasedonproductconditions,andassessingwhethertheinventorywrite-downprovisionisreasonable.(II)RevenueRecognition

1.DescriptionsofthematterForthedetails,pleaserefertoNote3.27andNote5.34ofthefinancialstatements.AsstatedinNote5.34tothefinancialstatements,themainoperatingrevenueoftheCompanyforthecurrentyearwasRMB3,928.8451million,representinga13.72%decreasecomparedtothepreviousyear.TheCompany'smainoperatingrevenueisprimarilyderivedfromthesalesofself-ownedandagency-brandwatches.SincerevenueisoneoftheCompany'skeyperformanceindicators,thereisaninherentriskthatrevenuemayberecognizedintheincorrectperiodormanipulatedtomeet

specifictargetsorexpectations.Therefore,wehaveidentifiedtherevenuerecognitionoftheCompanyasakeyauditmatter.

2.HowthematterwasaddressedinourauditTheauditproceduresweperformedinrelationtorevenuerecognition:

(1)Understanding,evaluating,andtestingthedesignandoperatingeffectivenessofinternalcontrolsrelatedtorevenuerecognition;

(2)UtilizingexpertworktoconductITauditsontheinformationsystem,evaluatingtheauthenticityandaccuracyofbusinessdatarelatedtofinancialreporting;

(3)Obtainingandreviewingaccountingpoliciesrelatedtorevenuerecognition,andassessingwhetherthetimingofcontroltransfer,transactionpricemeasurement,andspecialtransactionaccountingtreatmentcomplywiththerequirementsofaccountingstandards;

(4)Selectingsamplestoexaminesupportingdocumentsrelatedtorevenuerecognition,includingsalescontracts,salesinvoices,mallreconciliationstatements,customerreceiptrecords,andlogisticsdocuments;

(5)Performingauditproceduresonaccountsreceivablebyselectingsamplesforconfirmationoftransactionamountsandbalanceswithcustomers,aswellasverifyingsubsequentcollections;

(6)Selectingsamplesofsalesrevenuerecognizedbeforeandafterthebalancesheetdatetoreviewsalescontracts,salesinvoices,mallreconciliationstatements,customerreceiptrecords,andlogisticsdocumentstoevaluatewhetherrevenueisrecognizedintheappropriateaccountingperiod.OtherinformationManagementoftheCompanyisresponsiblefortheotherinformation.TheotherinformationcomprisestheinformationincludedintheAnnualReportoftheCompanyfortheyearof2024,butdoesnotincludethefinancialstatementsandourauditor’sreportthereon.

Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatementsManagementoftheCompanyisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewithAccountingStandardsofBusinessEnterprises,andforthedesign,implementationandmaintenanceofsuchinternalcontrolasmanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,managementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhavenorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.Auditor’sResponsibilitiesfortheAuditoftheFinancialStatementsOurObjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisa

highlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithCSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.AspartofanauditinaccordancewithCSAs,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:

i)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,

whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.ii)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesign

auditproceduresthatareappropriateinthecircumstances.iii)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessof

accountingestimatesandrelateddisclosuresmadebymanagement.iv)Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisof

accountingand,basedontheauditevidenceobtained,whetheramaterial

uncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubton

theCompany’sabilitytocontinueasagoingconcern.Ifweconcludethata

materialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreport

totherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresare

inadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidence

obtaineduptothedateofourauditor’sreport.However,futureeventsorconditions

maycausetheCompanytoceasetocontinueasagoingconcern.

v)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,

andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.vi)Obtainsufficientappropriateauditevidenceregardingthefinancialinformationof

theentitiesorbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Weremainsolelyresponsibleforourauditopinion.Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.

(ThisissealpageforAuditor’sReportofRSMSZ[2025]No.350Z0001forFIYTAPrecisionTechnologyCo.,Ltd.withouttext.)

RSMChinaCPALLP

CaiRuxiaoChinaCertifiedPublicAccountant(EngagementPartner)China·Beijing

ZhengChaominChinaCertifiedPublicAccountant

GeHuaChinaCertifiedPublicAccountant

12March2025

ConsolidatedStatementofFinancialPosition

ConsolidatedStatementofFinancialPosition
31December2024
Preparedby:FIYTAPrecisionTechnologyCo.,Ltd.						Unit：YuanCurrency:RMB
Item	Note	2024-12-31	2023-12-31	Item	Note	2024-12-31	2023-12-31
Currentassets:				Currentliabilities:
Monetaryfunds	5.1	518,954,177.49	504,629,153.71	Short-termborrowings	5.16	124,087,754.51	250,187,763.87
Financialassetsheld-for-trading				Financialliabilitiesheld-for-trading
Derivativefinancialassets				Derivativefinancialliabilities
Notesreceivable	5.2	29,611,600.60	18,268,972.37	Notespayable
Accountsreceivable	5.3	260,152,834.43	323,142,761.64	Accountspayable	5.17	115,532,921.57	173,825,907.71
Accountsreceivablefinancing				Receiptsinadvance	5.18	11,783,796.49	10,267,758.31
Advancestosuppliers	5.4	3,858,053.60	6,571,239.98	Contractliabilities	5.19	12,605,722.95	12,286,243.62
Premiumreceivable				Employeebenefitspayable	5.20	92,260,153.14	120,084,810.60
Otherreceivables	5.5	56,982,351.27	57,725,792.00	Taxespayable	5.21	49,815,151.35	64,188,161.31
Including:Interestsreceivable				Otherpayables	5.22	104,638,483.81	121,937,801.07
Dividendreceivable				Including:Interestspayables
Inventories	5.6	1,984,486,969.74	2,100,666,175.28	Dividendpayables	5.22	2,785,293.14	2,058,352.24
Contractassets				Liabilitiesclassifiedasheldforsale
Assetsclassifiedasheldforsale				Non-currentliabilitiesmaturingwithinoneyear	5.23	63,538,231.06	66,399,004.20
Non-currentassetsmaturingwithinoneyear				Othercurrentliabilities	5.24	1,529,468.07	1,589,635.30
Othercurrentassets	5.7	98,007,925.22	72,249,391.81	Totalcurrentliabilities		575,791,682.95	820,767,085.99
Totalcurrentassets		2,952,053,912.35	3,083,253,486.79	Non-currentliabilities:
Non-currentassets:				Insurancecontractreserve
Debtinvestments				Long-termborrowings
Otherdebtinvestments				Bondspayable
Long-termreceivables				Including:Preferenceshare
Long-termequityinvestments	5.8	50,907,036.84	51,862,607.30	Perpetualdebt
Otherequityinstrumentinvestment				Leaseliabilities	5.25	35,065,292.04	43,526,352.52
Othernon-currentfinancialassets				Long-termpayables
Investmentproperties	5.9	301,002,364.41	360,255,832.14	Long-termemployeebenefitspayable
Fixedassets	5.10	377,568,144.41	355,785,354.68	Estimatedliabilities
Constructioninprogress				Deferredincome	5.26		952,785.69
Productivebiologicalassets				Deferredtaxliabilities	5.14	4,990,541.42	5,208,920.69
Oilandgasassets				Othernon-currentliabilities
Right-of-useassets	5.11	98,437,976.41	109,452,481.64	Totalnon-currentliabilities		40,055,833.46	49,688,058.90
Intangibleassets	5.12	31,567,927.16	31,664,380.77	Totalliabilities		615,847,516.41	870,455,144.89
Developmentexpenditures				Owners’equity
Goodwill				Sharecapital	5.27	405,764,007.00	415,219,970.00
Long-termdeferredexpenses	5.13	110,205,323.29	122,324,355.13	Otherequityinstruments
Deferredtaxassets	5.14	82,155,778.31	80,227,771.46	Including:Preferenceshares
Othernon-currentassets	5.15	3,792,253.84	9,434,627.17	Perpetualdebt
				Capitalreserves	5.28	936,339,503.60	990,159,033.17
				Less:Treasurystock	5.29	12,815,556.81	78,645,532.23
				Othercomprehensiveincome	5.30	15,686,794.62	19,325,335.93
				Specialreserves	5.31	4,340,162.76	3,223,158.06
				Surplusreserves	5.32	275,010,401.50	275,010,401.50
				Generalriskreserves
				Retainedearnings	5.33	1,767,517,887.94	1,709,513,385.76
				Totalowner’sequityattributabletoparentcompany		3,391,843,200.61	3,333,805,752.19
				Non-controllinginterests
Totalnon-currentassets		1,055,636,804.67	1,121,007,410.29	Totalowners’equity		3,391,843,200.61	3,333,805,752.19
Totalassets		4,007,690,717.02	4,204,260,897.08	Totalliabilitiesandowners'equity		4,007,690,717.02	4,204,260,897.08
LegalRepresentative:		ZhangXuhua	ChiefFinancialOfficer：SongYaoming			FinanceManager：TianHui

ConsolidatedStatementofProfitorLossandOtherComprehensiveIncome

ConsolidatedStatementofProfitorLossandOtherComprehensiveIncome
Fortheyearended31December2024
Preparedby:FIYTAPrecisionTechnologyCo.,Ltd.		Unit：YuanCurrency:RMB
Item	Note	2024	2023
I.Revenue	5.34	3,940,530,934.07	4,569,690,002.99
II.Costofsales		3,647,655,677.55	4,150,297,794.32
Including:operatingcost	5.34	2,476,197,934.43	2,905,463,474.81
Taxesandsurcharges	5.35	31,477,134.80	36,193,846.10
Sellinganddistributionexpenses	5.36	882,777,806.63	924,009,179.32
Generalandadministrativeexpenses	5.37	183,277,930.17	205,359,277.24
Researchanddevelopmentexpenses	5.38	56,000,000.18	57,802,244.08
Financecosts	5.39	17,924,871.34	21,469,772.77
Including:Interestexpense	5.39	10,697,706.12	12,824,222.06
Interestincome	5.39	4,925,264.78	5,722,586.39
Add:Otherincome	5.40	7,492,642.33	11,435,373.78
Investmentincome/(losses)	5.41	-431,254.89	-5,819,479.60
Including:Investmentincomefromassociatesandjointventures	5.41	-955,570.46	-5,819,479.60
Gains/(losses)fromderecognitionoffinancialassetsmeasuredatamortisedcost
Gains/(losses)fromforeignexchange
Income/(losses)fromnetexposurehedging
Gains/(losses)fromchangesinfairvalues
Creditimpairmentlosses	5.42	266,485.96	6,827,575.82
Assetimpairmentlosses	5.43	-19,289,865.31	571,980.37
Gains/(losses)fromdisposalofassets	5.44	2,367,816.60	685,868.57
III.Profit/(loss)fromoperations		283,281,081.21	433,093,527.61
Add:Non-operatingincome	5.45	3,623,505.31	4,770,506.80
Less:Non-operatingexpenses	5.46	788,917.93	859,770.10
IV.Profit/(loss)beforetax		286,115,668.59	437,004,264.31
Less:Incometaxexpenses	5.47	65,765,483.60	103,826,161.94
V.Netprofit/(loss)fortheyear		220,350,184.99	333,178,102.37
(I)Netprofit/(loss)bycontinuity
Netprofit/(loss)fromcontinuingoperation		220,350,184.99	333,178,102.37
Netprofit/(loss)fromdiscontinuedoperation
(II)Netprofit/(loss)byownershipattribution
Attributabletoownersoftheparent		220,350,184.99	333,178,102.37
Attributabletonon-controllinginterests
VI.Othercomprehensiveincomefortheyear,aftertax		-3,638,541.31	13,585,746.04
(a)Attributabletoownersoftheparent		-3,638,541.31	13,585,746.04
(i)Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss
(ii)Othercomprehensiveincometobereclassifiedsubsequentlytoprofitorloss		-3,638,541.31	13,585,746.04
1.Exchangedifferencesontranslatingforeignoperations		-3,638,541.31	13,585,746.04
(b)Attributabletonon-controllinginterests
VII.Totalcomprehensiveincomefortheyear		216,711,643.68	346,763,848.41
Attributabletoownersoftheparent		216,711,643.68	346,763,848.41
Attributabletonon-controllinginterests
VIII.Earningspershare:
Basicearningspershare		0.5385	0.8082
Dilutedearningspershare		0.5378	0.8075
LegalRepresentative:ZhangXuhuaChiefFinancialOfficer：SongYaoming			FinanceManager：TianHui

ConsolidatedStatementofCashFlows

ConsolidatedStatementofCashFlows
Fortheyearended31December2024
Preparedby:FIYTAPrecisionTechnologyCo.,Ltd.			Unit：YuanCurrency:RMB
Item	Note	2024	2023
I.Cashflowsfromoperatingactivities
Cashreceivedfromthesaleofgoodsandtherenderingofservices		4,337,357,146.69	5,025,883,440.00
Cashreceivedfromtaxrefund		2,096,237.99	1,937,203.71
Othercashreceivedrelatingtooperatingactivities	5.49	49,625,091.94	68,179,211.21
Subtotalofcashinflowsfromoperatingactivities		4,389,078,476.62	5,095,999,854.92
Cashpaymentsforgoodspurchasedandservicesreceived		2,664,684,979.78	3,155,385,386.12
Cashpaymentstoandonbehalfofemployees		596,768,402.64	624,495,756.20
Paymentsfortaxes		260,501,102.47	296,079,135.93
Othercashpaymentsrelatingtooperatingactivities	5.49	330,393,031.44	387,638,088.69
Subtotalofcashoutflowsfromoperatingactivities		3,852,347,516.33	4,463,598,366.94
Netcashflowsfromoperatingactivities		536,730,960.29	632,401,487.98
II.Cashflowsfrominvestingactivities
Cashreceivedfromdisposalandredemptionofinvestments
Cashreceivedfromreturnsoninvestments		418,515.82	500,000.00
Netcashreceivedfromdisposalsoffixedassets,intangibleassetsandotherlong-termassets		4,848,874.32	1,278,284.57
Netcashreceivedfromdisposalsofsubsidiariesandotherbusinessunits
Othercashreceivedrelatingtoinvestingactivities	5.49	201,839,677.57
Subtotalofcashinflowsfrominvestingactivities		207,107,067.71	1,778,284.57
Cashpaymentstoacquirefixed,intangibleandotherlong-termassets		86,818,686.04	91,104,776.03
Cashpaymentstoacquireinvestments
Netcashpaymentstoacquiresubsidiariesandotherbusinessunits
Othercashpaymentsrelatingtoinvestingactivities	5.49	231,179,882.49
Subtotalofcashoutflowsfrominvestingactivities		317,998,568.53	91,104,776.03
Netcashflowsfrominvestingactivities		-110,891,500.82	-89,326,491.46
III.Cashflowsfromfinancingactivities
Cashreceivedfromcapitalcontributions
Including:Cashreceiptsfromcapitalcontributionsformnon-controllinginterestsofsubsidiaries
Cashreceivedfromborrowings		323,957,187.86	250,000,000.00
Othercashreceivedrelatingtofinancingactivities
Subtotalofcashinflowsfromfinancingactivities		323,957,187.86	250,000,000.00
Cashrepaymentsofdebts		450,000,000.00	290,000,000.00
Cashpaymentsfordividends,distributionofprofitandinterestexpenses		168,545,613.69	114,106,711.75
Including:Dividends,distributionofprofitpaidtonon-controllingshareholdersofsubsidiaries
Othercashpaymentsrelatingtofinancingactivities	5.49	116,757,093.91	198,056,975.77
Subtotalofcashoutflowsfromfinancingactivities		735,302,707.60	602,163,687.52
Netcashflowsfromfinancingactivities		-411,345,519.74	-352,163,687.52
IV.Effectofforeignexchangeratechangesoncashandcashequivalents		-168,915.95	-20,544.93
V.Netincrease/(decrease)incashandcashequivalents		14,325,023.78	190,890,764.07
Plus:Cashandcashequivalentsatthebeginningoftheperiod		504,629,153.71	313,738,389.64
VI.Cashandcashequivalentsattheendoftheperiod		518,954,177.49	504,629,153.71
LegalRepresentative:ZhangXuhuaChiefFinancialOfficer:SongYaoming			FinanceManager:TianHui

ConsolidatedStatementofChangesinOwners'Equity

ConsolidatedStatementofChangesinOwners'Equity
Fortheyearended31December2024
Preparedby:FIYTAPrecisionTechnologyCo.,Ltd.									Unit：YuanCurrency:RMB
Item	2024
	Owners’equityattributabletotheparentcompany												Non-controllinginterests	Totalowners’equity
	Sharecapital	Otherequityinstruments			Capitalreserves	Less:Treasurystock	Othercomprehensiveincome	Specialreserves	Surplusreserves	Generalriskreserves	Retainedearnings	Subtotal
	Sharecapital	Preferenceshares	Perpetualcapitalsecurities	Others	Capitalreserves	Less:Treasurystock	Othercomprehensiveincome	Specialreserves	Surplusreserves	Generalriskreserves	Retainedearnings	Subtotal
I.Balanceat31December2023	415,219,970.00				990,159,033.17	78,645,532.23	19,325,335.93	3,223,158.06	275,010,401.50		1,709,513,385.76	3,333,805,752.19		3,333,805,752.19
Add：Changesinaccountingpolicies
Correctionofpriorperioderrors
Businesscombinationundercommoncontrol
Others
II.Balanceat1January2024	415,219,970.00				990,159,033.17	78,645,532.23	19,325,335.93	3,223,158.06	275,010,401.50		1,709,513,385.76	3,333,805,752.19		3,333,805,752.19
III.Changesinequityduringthereportingperiod	-9,455,963.00				-53,819,529.57	-65,829,975.42	-3,638,541.31	1,117,004.70			58,004,502.18	58,037,448.42		58,037,448.42
(i)Totalcomprehensiveincome							-3,638,541.31				220,350,184.99	216,711,643.68		216,711,643.68
(ii)Capitalcontributionsorwithdrawalsbyowners	-9,455,963.00				-53,819,529.57	-65,829,975.42						2,554,482.85		2,554,482.85
1.Ordinarysharescontributedbyshareholders	-9,355,763.00				-54,984,906.42	-64,340,669.42
2．Capitalcontributedbyholdersofotherequityinstruments
3．Share-basedpaymentsrecognisedinowners’equity	-100,200.00				1,165,376.85	-1,489,306.00						2,554,482.85		2,554,482.85
4．Others

(iii)Profitdistribution

(iii)Profitdistribution							-162,345,682.81	-162,345,682.81	-162,345,682.81
1．Transfertosurplusreserves
2.Transfertogeneralriskreserves
3．Profitdistributiontoowners(orshareholders)							-162,345,682.81	-162,345,682.81	-162,345,682.81
4．Others
(iv)Transferwithinowners'equity
1．Capitalreservesconvertedtosharecapital
2．Surplusreservesconvertedtosharecapital
3．Lossmadeupbysurplusreserves
4．Changesinthedefinedbenefitplantransferredtoretainedearnings
5.Othercomprehensiveincometransferredtoretainedearnings
6.Others
(v)Specialreserves					1,117,004.70			1,117,004.70	1,117,004.70
1．Withdrawalduringthereportingperiod					1,521,112.80			1,521,112.80	1,521,112.80
2．Usageduringthereportingperiod					-404,108.10			-404,108.10	-404,108.10
(vi)Others
IV.Balanceat31December2024	405,764,007.00	936,339,503.60	12,815,556.81	15,686,794.62	4,340,162.76	275,010,401.50	1,767,517,887.94	3,391,843,200.61	3,391,843,200.61
LegalRepresentative:ZhangXuhuaChiefFinancialOfficer:SongYaomingFinanceManager:TianHui

ConsolidatedStatementofChangesinOwners'Equity

ConsolidatedStatementofChangesinOwners'Equity
Fortheyearended31December2024
Preparedby:FIYTAPrecisionTechnologyCo.,Ltd.									Unit：YuanCurrency:RMB
Item	2023
	Owners’equityattributabletotheparentcompany												Non-controllinginterests	Totalowners’equity
	Sharecapital	Otherequityinstruments			Capitalreserves	Less:Treasurystock	Othercomprehensiveincome	Specialreserves	Surplusreserves	Generalriskreserves	Retainedearnings	Subtotal
	Sharecapital	Preferenceshares	Perpetualcapitalsecurities	Others	Capitalreserves	Less:Treasurystock	Othercomprehensiveincome	Specialreserves	Surplusreserves	Generalriskreserves	Retainedearnings	Subtotal
I.Balanceat31December2022	417,627,960.00				1,007,086,643.48	50,759,806.16	5,739,589.89	2,012,064.91	275,010,401.50		1,479,706,638.53	3,136,423,492.15		3,136,423,492.15
Add：Changesinaccountingpolicies
Correctionofpriorperioderrors
Businesscombinationundercommoncontrol
Others
II.Balanceat1January2023	417,627,960.00				1,007,086,643.48	50,759,806.16	5,739,589.89	2,012,064.91	275,010,401.50		1,479,706,638.53	3,136,423,492.15		3,136,423,492.15
III.Changesinequityduringthereportingperiod	-2,407,990.00				-16,927,610.31	27,885,726.07	13,585,746.04	1,211,093.15			229,806,747.23	197,382,260.04		197,382,260.04
(i)Totalcomprehensiveincome							13,585,746.04				333,178,102.37	346,763,848.41		346,763,848.41
(ii)Capitalcontributionsorwithdrawalsbyowners	-2,407,990.00				-16,927,610.31	27,885,726.07						-47,221,326.38		-47,221,326.38
1.Ordinarysharescontributedbyshareholders						64,340,669.42						-64,340,669.42		-64,340,669.42
2．Capitalcontributedbyholdersofotherequityinstruments
3．Share-basedpaymentsrecognisedinowners’equity	-2,407,990.00				-16,915,253.76	-36,454,943.35						17,131,699.59		17,131,699.59

4．Others

4．Others		-12,356.55						-12,356.55	-12,356.55
(iii)Profitdistribution							-103,371,355.14	-103,371,355.14	-103,371,355.14
1．Transfertosurplusreserves
2.Transfertogeneralriskreserves
3．Profitdistributiontoowners(orshareholders)							-103,371,355.14	-103,371,355.14	-103,371,355.14
4．Others
(iv)Transferwithinowners'equity
1．Capitalreservesconvertedtosharecapital
2．Surplusreservesconvertedtosharecapital
3．Lossmadeupbysurplusreserves
4．Changesinthedefinedbenefitplantransferredtoretainedearnings
5.Othercomprehensiveincometransferredtoretainedearnings
6.Others
(v)Specialreserves					1,211,093.15			1,211,093.15	1,211,093.15
1．Withdrawalduringthereportingperiod					1,537,825.22			1,537,825.22	1,537,825.22
2．Usageduringthereportingperiod					-326,732.07			-326,732.07	-326,732.07
(vi)Others
IV.Balanceat31December2023	415,219,970.00	990,159,033.17	78,645,532.23	19,325,335.93	3,223,158.06	275,010,401.50	1,709,513,385.76	3,333,805,752.19	3,333,805,752.19
LegalRepresentative:ZhangXuhuaChiefFinancialOfficer:SongYaomingFinanceManager:TianHui

StatementofFinancialPositionofParentCompany

StatementofFinancialPositionofParentCompany
31December2024
Preparedby:FIYTAPrecisionTechnologyCo.,Ltd.							Unit：YuanCurrency:RMB
Item	Note	2024-12-31	2023-12-31	Item	Note	2024-12-31	2023-12-31
Currentassets:				Currentliabilities:
Monetaryfunds		390,160,466.41	308,230,255.35	Short-termborrowings		120,130,566.65	250,187,763.87
Financialassetsheld-for-trading				Financialliabilitiesheld-for-trading
Derivativefinancialassets				Derivativefinancialliabilities
Notesreceivable				Notespayable
Accountsreceivable	16.1	4,631,990.38	1,822,916.61	Accountspayable		1,928,876.85	2,285,657.88
Accountsreceivablefinancing				Receiptsinadvance		11,783,796.49	10,267,758.31
Advancestosuppliers				Contractliabilities
Otherreceivables	16.2	659,565,868.48	696,328,419.85	Employeebenefitspayable		23,190,240.79	25,886,702.67
Including:Interestsreceivable				Taxespayable		779,783.47	3,322,241.54
Dividendreceivable				Otherpayables		252,129,600.19	224,668,548.77
Inventories		45,565.43		Including:Interestspayables
Contractassets				Dividendpayables		2,785,293.14	2,058,352.24
Assetsclassifiedasheldforsale				Liabilitiesclassifiedasheldforsale
Non-currentassetsmaturingwithinoneyear				Non-currentliabilitiesmaturingwithinoneyear
Othercurrentassets		16,189,136.04	15,886,769.82	Othercurrentliabilities
Totalcurrentassets		1,070,593,026.74	1,022,268,361.63	Totalcurrentliabilities		409,942,864.44	516,618,673.04
Non-currentassets:				Non-currentliabilities:
Debtinvestments				Long-termborrowings
Otherdebtinvestments				Bondspayable
Long-termreceivables				Including:Preferenceshare
Long-termequityinvestments	16.3	1,643,450,922.75	1,633,041,716.11	Perpetualdebt
Otherequityinstrumentinvestment				Leaseliabilities
Othernon-currentfinancialassets				Long-termpayables
Investmentproperties		237,185,496.11	293,695,692.68	Long-termemployeebenefitspayable
Fixedassets		241,791,004.56	207,209,890.94	Estimatedliabilities
Constructioninprogress				Deferredincome			952,785.69
Productivebiologicalassets				Deferredtaxliabilities
Oilandgasassets				Othernon-currentliabilities
Right-of-useassets				Totalnon-currentliabilities			952,785.69
Intangibleassets		24,189,360.11	23,460,211.70	Totalliabilities		409,942,864.44	517,571,458.73
Developmentexpenditures				Owners’equity
Goodwill				Sharecapital		405,764,007.00	415,219,970.00
Long-termdeferredexpenses		3,692,497.29	4,795,846.73	Otherequityinstruments
Deferredtaxassets		931,572.58	640,783.05	Including:Preferenceshares
Othernon-currentassets		1,358,052.54	710,807.49	Perpetualdebt
				Capitalreserves		939,217,999.41	993,037,528.98
				Less:Treasurystock		12,815,556.81	78,645,532.23
				Othercomprehensiveincome
				Specialreserves
				Surplusreserves		275,010,401.50	275,010,401.50
				Retainedearnings		1,206,072,217.14	1,063,629,483.35
Totalnon-currentassets		2,152,598,905.94	2,163,554,948.70	Totalowners’equity		2,813,249,068.24	2,668,251,851.60
Totalnon-currentassets		3,223,191,932.68	3,185,823,310.33	Totalliabilitiesandowners'equity		3,223,191,932.68	3,185,823,310.33
LegalRepresentative:ZhangXuhuaChiefFinancialOfficer:SongYaomingFinanceManager:TianHui

StatementofProfitorLossandOtherComprehensiveIncomeofParentCompany

StatementofProfitorLossandOtherComprehensiveIncomeofParentCompany
Fortheyearended31December2024
Preparedby:FIYTAPrecisionTechnologyCo.,Ltd.			Unit：YuanCurrency:RMB
Item	Note	2024	2023
I.Revenue	16.4	184,540,282.60	180,874,926.74
Less:Costsofsales	16.4	56,887,861.74	49,729,440.87
Taxesandsurcharges		7,760,550.74	7,815,174.54
Sellinganddistributionexpenses		36,615,636.74	16,395,826.35
Administrativeexpenses		50,131,039.57	53,755,060.51
Researchanddevelopmentexpenses		13,813,526.33	12,959,491.24
Financecosts		-2,116,792.12	-947,061.34
Including:Interestexpense		1,342,394.82	2,405,575.67
Interestincome		3,871,354.75	4,460,371.04
Add:Otherincome		1,163,695.74	1,097,603.80
Investmentincome/(losses)	16.5	287,322,662.30	192,180,520.40
Including:Investmentincomefromassociatesandjointventures	16.5	-955,570.46	-5,819,479.60
Gains/(losses)fromderecognitionoffinancialassetsmeasuredatamortisedcost
Income/(losses)fromnetexposurehedging
Gains/(losses)fromchangesinfairvalues
Creditimpairmentlosses		-1,785,286.03	-104,859.73
Assetimpairmentlosses
Gains/(losses)fromdisposalofassets		2,917,069.98	635,033.80
II.Profit/(loss)fromoperations		311,066,601.59	234,975,292.84
Add:Non-operatingincome		1,273.46	8,037.20
Less:Non-operatingexpenses		360,776.94	312,375.33
III.Profit/(loss)beforetax		310,707,098.11	234,670,954.71
Less:Incometaxexpenses		5,918,681.51	10,687,283.10
IV.Netprofit/(loss)fortheyear		304,788,416.60	223,983,671.61
Netprofit/(loss)fromcontinuingoperation		304,788,416.60	223,983,671.61
Netprofit/(loss)fromdiscontinuedoperation
V.Othercomprehensiveincomefortheyear,aftertax
(i)Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss
(ii)Othercomprehensiveincometobereclassifiedsubsequentlytoprofitorloss
VI.Totalcomprehensiveincomefortheyear		304,788,416.60	223,983,671.61
LegalRepresentative:ZhangXuhuaChiefFinancialOfficer:SongYaomingFinanceManager:TianHui

StatementofCashFlowsofParentCompany

StatementofCashFlowsofParentCompany
Fortheyearended31December2024
Preparedby:FIYTAPrecisionTechnologyCo.,Ltd.			Unit：YuanCurrency:RMB
Item	Note	2024	2023
I.Cashflowsfromoperatingactivities
Cashreceivedfromthesaleofgoodsandtherenderingofservices		195,929,990.98	189,464,980.58
Cashreceivedfromtaxrefund		47,921.04
Othercashreceivedrelatingtooperatingactivities		3,946,025,896.49	4,225,525,553.06
Subtotalofcashinflowsfromoperatingactivities		4,142,003,808.51	4,414,990,533.64
Cashpaymentsforgoodspurchasedandservicesreceived		20,605,249.00	9,573,850.00
Cashpaymentstoandonbehalfofemployees		74,801,849.07	61,402,333.15
Paymentsfortaxes		24,754,181.25	20,428,198.75
Othercashpaymentsrelatingtooperatingactivities		3,917,630,232.90	4,154,707,540.94
Subtotalofcashoutflowsfromoperatingactivities		4,037,791,512.22	4,246,111,922.84
Netcashflowsfromoperatingactivities		104,212,296.29	168,878,610.80
II.Cashflowsfrominvestingactivities
Cashreceivedfromdisposalandredemptionofinvestments
Cashreceivedfromreturnsoninvestments		288,278,232.76	198,500,000.00
Netcashreceivedfromdisposalsoffixedassets,intangibleassetsandotherlong-termassets		4,742,145.47	1,146,737.46
Netcashreceivedfromdisposalsofsubsidiariesandotherbusinessunits
Othercashreceivedrelatingtoinvestingactivities
Subtotalofcashinflowsfrominvestingactivities		293,020,378.23	199,646,737.46
Cashpaymentstoacquirefixed,intangibleandotherlong-termassets		5,993,530.21	7,686,801.71
Cashpaymentstoacquireinvestments		10,000,000.00	90,000,000.00
Netcashpaymentstoacquiresubsidiariesandotherbusinessunits
Othercashpaymentsrelatingtoinvestingactivities
Subtotalofcashoutflowsfrominvestingactivities		15,993,530.21	97,686,801.71
Netcashflowsfrominvestingactivities		277,026,848.02	101,959,935.75
III.Cashflowsfromfinancingactivities
Cashreceivedfromcapitalcontributions
Cashreceivedfromborrowings		320,000,000.00	250,000,000.00
Othercashreceivedrelatingtofinancingactivities
Subtotalofcashinflowsfromfinancingactivities		320,000,000.00	250,000,000.00
Cashrepaymentsofdebts		450,000,000.00	290,000,000.00
Cashpaymentsfordividends,distributionofprofitandinterestexpenses		168,545,613.69	114,106,711.75
Othercashpaymentsrelatingtofinancingactivities		794,690.45	83,148,230.83
Subtotalofcashoutflowsfromfinancingactivities		619,340,304.14	487,254,942.58
Netcashflowsfromfinancingactivities		-299,340,304.14	-237,254,942.58
IV.Effectofforeignexchangeratechangesoncashandcashequivalents		31,370.89	-44,371.78
V.Netincrease/(decrease)incashandcashequivalents		81,930,211.06	33,539,232.19
Plus:Cashandcashequivalentsatthebeginningoftheperiod		308,230,255.35	274,691,023.16
VI.Cashandcashequivalentsattheendoftheperiod		390,160,466.41	308,230,255.35
LegalRepresentative:ZhangXuhuaChiefFinancialOfficer:SongYaomingFinanceManager:TianHui

StatementofChangesinOwners'EquityofParentCompany

StatementofChangesinOwners'EquityofParentCompany
Fortheyearended31December2024
Preparedby:FIYTAPrecisionTechnologyCo.,Ltd.							Unit：YuanCurrency:RMB
Item	2024
	Sharecapital	Otherequityinstruments			Capitalreserves	Less:Treasurystock	Othercomprehensiveincome	Specialreserves	Surplusreserves	Retainedearnings	Totalowners’equity
	Sharecapital	Preferenceshares	Perpetualcapitalsecurities	Others	Capitalreserves	Less:Treasurystock	Othercomprehensiveincome	Specialreserves	Surplusreserves	Retainedearnings	Totalowners’equity
I.Balanceat31December2023	415,219,970.00				993,037,528.98	78,645,532.23			275,010,401.50	1,063,629,483.35	2,668,251,851.60
Add：Changesinaccountingpolicies
Correctionofpriorperioderrors
Others
II.Balanceat1January2024	415,219,970.00				993,037,528.98	78,645,532.23			275,010,401.50	1,063,629,483.35	2,668,251,851.60
III.Changesinequityduringthereportingperiod	-9,455,963.00				-53,819,529.57	-65,829,975.42				142,442,733.79	144,997,216.64
(i)Totalcomprehensiveincome										304,788,416.60	304,788,416.60
(ii)Capitalcontributionsorwithdrawalsbyowners	-9,455,963.00				-53,819,529.57	-65,829,975.42					2,554,482.85
1.Ordinarysharescontributedbyshareholders	-9,355,763.00				-54,984,906.42	-64,340,669.42
2．Capitalcontributedbyholdersofotherequityinstruments
3．Share-basedpaymentsrecognisedinowners’equity	-100,200.00				1,165,376.85	-1,489,306.00					2,554,482.85

4．Others

4．Others
(iii)Profitdistribution					-162,345,682.81	-162,345,682.81
1．Transfertosurplusreserves
2．Profitdistributiontoowners(orshareholders)					-162,345,682.81	-162,345,682.81
3．Others
(iv)Transferwithinowners'equity
1．Capitalreservesconvertedtosharecapital
2．Surplusreservesconvertedtosharecapital
3．Lossmadeupbysurplusreserves
4．Changesinthedefinedbenefitplantransferredtoretainedearnings
5.Othercomprehensiveincometransferredtoretainedearnings
6.Others
(v)Specialreserves
1．Withdrawalduringthereportingperiod
2．Usageduringthereportingperiod
(vi)Others
IV.Balanceat31December2024	405,764,007.00	939,217,999.41	12,815,556.81	275,010,401.50	1,206,072,217.14	2,813,249,068.24
LegalRepresentative:ZhangXuhuaChiefFinancialOfficer:SongYaomingFinanceManager:TianHui

StatementofChangesinOwners'Equity

StatementofChangesinOwners'Equity
Fortheyearended31December2024
Preparedby:FIYTAPrecisionTechnologyCo.,Ltd.									Unit：YuanCurrency:RMB
Item	2023
	Sharecapital	Otherequityinstruments			Capitalreserves	Less:Treasurystock	Othercomprehensiveincome	Specialreserves	Surplusreserves	Retainedearnings	Totalowners’equity
	Sharecapital	Preferenceshares	Perpetualcapitalsecurities	Others	Capitalreserves	Less:Treasurystock	Othercomprehensiveincome	Specialreserves	Surplusreserves	Retainedearnings	Totalowners’equity
I.Balanceat31December2022	417,627,960.00				1,010,917,776.19	50,759,806.16			275,010,401.50	943,017,166.88	2,595,813,498.41
Add：Changesinaccountingpolicies
Correctionofpriorperioderrors
Others
II.Balanceat1January2023	417,627,960.00				1,010,917,776.19	50,759,806.16			275,010,401.50	943,017,166.88	2,595,813,498.41
III.Changesinequityduringthereportingperiod	-2,407,990.00				-17,880,247.21	27,885,726.07				120,612,316.47	72,438,353.19
(i)Totalcomprehensiveincome										223,983,671.61	223,983,671.61
(ii)Capitalcontributionsorwithdrawalsbyowners	-2,407,990.00				-17,880,247.21	27,885,726.07					-48,173,963.28
1.Ordinarysharescontributedbyshareholders						64,340,669.42					-64,340,669.42
2．Capitalcontributedbyholdersofotherequityinstruments
3．Share-basedpaymentsrecognisedinowners’equity	-2,407,990.00				-17,867,890.66	-36,454,943.35					16,179,062.69
4．Others					-12,356.55						-12,356.55
(iii)Profitdistribution										-103,371,355.14	-103,371,355.14

1．Transfertosurplusreserves

1．Transfertosurplusreserves
2．Profitdistributiontoowners(orshareholders)					-103,371,355.14	-103,371,355.14
3．Others
(iv)Transferwithinowners'equity
1．Capitalreservesconvertedtosharecapital
2．Surplusreservesconvertedtosharecapital
3．Lossmadeupbysurplusreserves
4．Changesinthedefinedbenefitplantransferredtoretainedearnings
5.Othercomprehensiveincometransferredtoretainedearnings
6.Others
(v)Specialreserves
1．Withdrawalduringthereportingperiod
2．Usageduringthereportingperiod
(vi)Others
IV.Balanceat31December2023	415,219,970.00	993,037,528.98	78,645,532.23	275,010,401.50	1,063,629,483.35	2,668,251,851.60
LegalRepresentative:ZhangXuhuaChiefFinancialOfficer:SongYaomingFinanceManager:TianHui

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

FIYTAPrecisionTechnologyCo.,Ltd.NotestotheFinancialStatementsFortheyearended31December2024（AllamountsareexpressedinRenminbiYuan(“RMB”)unlessotherwisestated）

1.BASICINFORMATIONABOUTTHECOMPANYFIYTAPrecisionTechnologyCo.,Ltd.(hereinafterreferredtoas“theCompany”)wasestablished,undertheapprovalofShenFuBanFu(1992)1259issuedbytheGeneralOfficeofShenzhenMunicipalGovernment,throughtherestructuringofformerShenzhenFIYTATimeIndustrialCompanybythepromoterofChinaNationalAero-TechnologyImportandExportShenzhenIndustry&TradeCenter(namechangedto“ChinaNationalAero-TechnologyShenzhenCo.,Ltd”lately)on25December1992.On3June1993,boththeCompanywaslistedonShenzhenStockExchange.TheCompanyholdsbusinesslicensewiththeUnifiedSocialCreditCodeof91440300192189783K.Asat31December2024,theoutstandingsharesissuedbytheCompanywas405.764007millionsharesandtheregisteredcapitalwas405.764007millionafteraseriesofsharedividends,rightsoffering,capitalizationofreserves,andissuingofnewshares.TheCompany’sregisteredaddressisFIYTAHi-TechBuilding,GaoXinNanYiDao,NanshanDistrict,Shenzhen,GuangdongProvince,wheretheCompany’sheadquarterslocates.TheparentcompanyoftheCompanyisCATICShenzhenHoldingsLimited(CATICShenzhen)andtheultimatecontrollingpartyoftheCompanyisAviationIndustryCorporationofChina,Ltd.(AVIC).ThebusinessnatureandmainoperatingactivitiesoftheCompanyanditssubsidiariesmainlyinclude:WatchandClockSales;WatchandTimingInstrumentManufacturing;WatchandTimingInstrumentSales;JewelryWholesale;JewelryRetail;WearableIntelligentDevicesManufacturing;WearableIntelligentDevicesSales;Non-residentialRealEstateLeasing;ProfessionalDesignServices;SalesofHouseholdElectricalAppliances;SalesofSatelliteMobileCommunicationTerminals.(Exceptforprojectsthatrequireapprovalbylaw,businessactivitiesmaybeconductedindependentlybasedonthebusinesslicenseinaccordancewiththelaw.)

TheCompanyincludedatotalof12subsidiariesintheconsolidationscopeforthecurrentperiod.Fordetails,refertoNote7,InterestsinOtherEntities.Therewerenochangesintheentitiesincludedintheconsolidatedfinancialstatementscomparedtothepreviousperiod.Thefinancialstatementswereapprovedandauthorizedforissue,upontheresolutionoftheCompany’sBoardofDirectorsmeetingon12March2025.

2.BASISOFPREPARATIONOFTHEFINANCIALSTATEMENTS

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

2.1BasisofPreparationBasedongoingconcern,accordingtoactuallyoccurredtransactionsandevents,theCompanypreparesitsfinancialstatementsinaccordancewiththeAccountingStandardsforBusinessEnterprises–Basicstandardsandconcreteaccountingstandards,AccountingStandardsforBusinessEnterprises–ApplicationGuidelines,AccountingStandardsforBusinessEnterprises–Interpretationsandotherrelevantprovisions(collectivelyknownas“AccountingStandardsforBusinessEnterprises,issuedbyMinistryofFinanceofPRC”).Inaddition,theCompanydisclosestherelevantfinancialinformationinaccordancewith"RulesNo.15fortheInformationDisclosureandReportingofCompaniesOfferingSecuritiestothePublic-GeneralRequirementsforFinancialReporting(2023Revision)"issuedbyCSRC.

2.2GoingConcernTheCompanyhasassesseditsabilitytocontinuallyoperateforthenexttwelvemonthsfromtheendofthereportingperiod,andnoanymattersthatmayresultindoubtonitsabilityasagoingconcernwerenoted.Therefore,itisreasonablefortheCompanytopreparefinancialstatementsonthegoingconcernbasis.

3.SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATESThefollowingsignificantaccountingpoliciesandaccountingestimatesoftheCompanyareformulatedinaccordancewiththeAccountingStandardsforBusinessEnterprises.BusinessesnotmentionedarecompliedwithrelevantaccountingpoliciesoftheAccountingStandardsforBusinessEnterprises.

3.1StatementofCompliancewiththeAccountingStandardsforBusinessEnterprisesTheCompanypreparesitsfinancialstatementsinaccordancewiththerequirementsoftheAccountingStandardsforBusinessEnterprises,trulyandcompletelyreflectingtheCompany’sfinancialpositionasat31December2024,anditsoperatingresults,changesinshareholders'equity,cashflowsandotherrelatedinformationfortheyearthenended.

3.2AccountingPeriodTheaccountingyearoftheCompanyisfrom1Januaryto31Decemberincalendaryear.

3.3OperatingCycleThenormaloperatingcycleoftheCompanyistwelvemonths.

3.4FunctionalCurrencyTheCompanyanditsdomesticsubsidiariesuseRMBasthefunctionalcurrency.TheCompany’soverseassubsidiary,FIYTA(HongKong)Limited(“FIYTAHongKong”),hasdeterminedHKDasitsfunctionalcurrencybasedontheprimaryeconomicenvironmentinwhichitoperates.MontresChourietSA,asubsidiaryofFIYTAHongKong,hasdeterminedCHFasitsfunctionalcurrencybasedonitsoperatingenvironment.Whenpreparingfinancialstatements,theiramountsaretranslatedintoRMB.TheCompanypreparesitsfinancialstatementsinRMB.

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

3.5DeterminingFactorandBasisofSelectionofMateriality

Item	Factorandbasisofmateriality
Accountsreceivablewithsignificantreversalorrecoveryofprovisionforbaddebtsrecognizedduringthecurrentperiod	Theamountofanindividualitemforyear-endbalanceismorethanRMB1,000,000
Significantotherpayablesagedmorethanoneyear	Theamountofanindividualitemforyear-endbalanceismorethanRMB1,000,000

3.6AccountingTreatmentofBusinessCombinationsunderandnotunderCommonControl(a)BusinesscombinationsundercommoncontrolTheassetsandliabilitiesthattheCompanyobtainsinabusinesscombinationundercommoncontrolshallbemeasuredattheircarryingamountoftheacquiredentityatthecombinationdate.Iftheaccountingpolicyadoptedbytheacquiredentityisdifferentfromthatadoptedbytheacquiringentity,theacquiringentityshall,accordingtoaccountingpolicyitadopts,adjusttherelevantitemsinthefinancialstatementsoftheacquiredpartybasedontheprincipalofmateriality.Asforthedifferencebetweenthecarryingamountofthenetassetsobtainedbytheacquiringentityandthecarryingamountoftheconsiderationpaidbyit,thecapitalreserve(capitalpremiumorsharepremium)shallbeadjusted.Ifthecapitalreserve(capitalpremiumorsharepremium)isnotsufficienttoabsorbthedifference,anyexcessshallbeadjustedagainstretainedearnings.(b)BusinesscombinationsnotundercommoncontrolTheassetsandliabilitiesthattheCompanyobtainsinabusinesscombinationnotundercommoncontrolshallbemeasuredattheirfairvalueattheacquisitiondate.Iftheaccountingpolicyadoptedbytheacquiredentityisdifferentfromthatadoptedbytheacquiringentity,theacquiringentityshall,accordingtoaccountingpolicyitadopts,adjusttherelevantitemsinthefinancialstatementsoftheacquiredentitybasedontheprincipalofmateriality.Theacquiringentityshallrecognisethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquiredentityasgoodwill.Theacquiringentityshall,pursuanttothefollowingprovisions,treatthenegativebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquiredentity:

(i)Itshallreviewthemeasurementofthefairvaluesoftheidentifiableassets,liabilitiesandcontingentliabilitiesitobtainsfromtheacquiredentityaswellasthecombinationcosts;(ii)If,afterthereview,thecombinationcostsarestilllessthanthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquiredentity,thebalanceshallberecognisedinprofitorlossofthereportingperiod.(c)Treatmentofbusinesscombinationrelatedcosts

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Theintermediarycostssuchasaudit,legalservicesandvaluationconsultingandotherrelatedmanagementcoststhataredirectlyattributabletothebusinesscombinationshallbechargedinprofitorlossintheperiodinwhichtheyareincurred.Thecoststoissueequityordebtsecuritiesfortheconsiderationofbusinesscombinationshallberecordedasapartofthevalueoftherespectequityordebtsecuritiesuponinitialrecognition.

3.7JudgmentofControlandMethodofPreparingtheConsolidatedFinancialStatements(a)JudgmentofcontrolandconsolidationdecisionControlexistswhentheCompanyhaspowerovertheinvestee,exposure,orrights,tovariablereturnsfromitsinvolvementwiththeinvesteeandtheabilitytouseitspowerovertheinvesteetoaffecttheamountofthereturns.Thedefinitionofcontrolcontainsthereelements:

-powerovertheinvestee;exposure,orrightstovariablereturnsfromtheCompany’sinvolvementwiththeinvestee;andtheabilitytouseitspowerovertheinvesteetoaffecttheamountoftheinvestor’sreturns.TheCompanycontrolsaninvesteeifandonlyiftheCompanyhasalltheabovethreeelements.Thescopeofconsolidatedfinancialstatementsshallbedeterminedonthebasisofcontrol.Itnotonlyincludessubsidiariesdeterminedbasedonvotingrights(orsimilar)ortogetherwithotherarrangement,butalsostructuredentitiesunderoneormorecontractualarrangements.SubsidiariesaretheentitiesthatcontrolledbytheCompany(includingenterprise,adivisiblepartoftheinvestee,andstructuredentitycontrolledbytheenterprise).Astructuredentity(sometimescalledaSpecialPurposeEntity)isanentitythathasbeendesignedsothatvotingorsimilarrightsarenotthedominantfactorindecidingwhocontrolstheentity.(b)MethodofpreparingtheconsolidatedfinancialstatementsTheconsolidatedfinancialstatementsshallbepreparedbytheCompanybasedonthefinancialstatementsoftheCompanyanditssubsidiaries,andusingotherrelatedinformation.Whenpreparingconsolidatedfinancialstatements,theCompanyshallconsidertheentiregroupasanaccountingentity,adoptuniformaccountingpoliciesandapplytherequirementsofAccountingStandardforBusinessEnterprisesrelatedtorecognition,measurementandpresentation.Theconsolidatedfinancialstatementsshallreflecttheoverallfinancialposition,operatingresultsandcashflowsofthegroup.(i)Likeitemsofassets,liabilities,equity,income,expensesandcashflowsoftheparentarecombinedwiththoseofthesubsidiaries.(ii)Thecarryingamountoftheparent’sinvestmentineachsubsidiaryiseliminated(off-set)againsttheparent’sportionofequityofeachsubsidiary.(iii)EliminatetheimpactofintragrouptransactionsbetweentheCompanyandthesubsidiariesorbetweensubsidiaries,andwhenintragrouptransactionsindicateanimpairmentofrelatedassets,thelossesshallberecognisedinfull.(iv)Makeadjustmentstospecialtransactionsfromtheperspectiveofthegroup.

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

(c)Specialconsiderationinconsolidationelimination(i)Long-termequityinvestmentheldbythesubsidiariestotheCompanyshallberecognisedastreasurystockoftheCompany,whichisoffsetwiththeowner’sequity,representedas“treasurystock”under“owner’sequity”intheconsolidatedstatementoffinancialposition.Long-termequityinvestmentheldbysubsidiariesbetweeneachotherisaccountedfortakinglong-termequityinvestmentheldbytheCompanytoitssubsidiariesasreference.Thatis,thelong-termequityinvestmentiseliminated(off-set)againsttheportionofthecorrespondingsubsidiary’sequity.(ii)Duetonotbelongingtopaid-incapital(orsharecapital)andcapitalreserve,andbeingdifferentfromretainedearningsandundistributedprofit,“Specificreserves”and“Generalriskprovision”shallberecoveredbasedontheproportionattributabletoownersoftheparentcompanyafterlong-termequityinvestmenttothesubsidiariesiseliminatedwiththesubsidiaries’equity.(iii)Iftemporarytimingdifferencebetweenthebookvalueoftheassetsandliabilitiesintheconsolidatedstatementoffinancialpositionandtheirtaxbasisisgeneratedasaresultofeliminationofunrealizedinter-companytransactionprofitorloss,deferredtaxassetsofdeferredtaxliabilitiesshallberecognised,andincometaxexpenseintheconsolidatedstatementofprofitorlossshallbeadjustedsimultaneously,excludingdeferredtaxesrelatedtotransactionsoreventsdirectlyrecognisedinowner’sequityorbusinesscombination.(iv)Unrealisedinter-companytransactionsprofitorlossgeneratedfromtheCompanysellingassetstoitssubsidiariesshallbeeliminatedagainst“netprofitattributedtotheownersoftheparentcompany”infull.Unrealizedinter-companytransactionsprofitorlossgeneratedfromthesubsidiariessellingassetstotheCompanyshallbeeliminatedbetween“netprofitattributedtotheownersoftheparentcompany”and“non-controllinginterests”pursuanttotheproportionoftheCompanyintherelatedsubsidiaries.Unrealizedinter-companytransactionsprofitorlossgeneratedfromtheassetssalesbetweenthesubsidiariesshallbeeliminatedbetween“netprofitattributedtotheownersoftheparentcompany”and“non-controllinginterests”pursuanttotheproportionoftheCompanyinthesellingsubsidiaries.(v)Iflossattributedtotheminorityshareholdersofasubsidiaryincurrentperiodismorethantheproportionofnon-controllinginterestinthissubsidiaryatthebeginningoftheperiod,non-controllinginterestisstilltobewrittendown.

3.8ClassificationofJointArrangementsandAccountingforJointOperationAjointarrangementisanarrangementofwhichtwoormorepartieshavejointcontrol.JointarrangementoftheCompanyisclassifiedaseitherajointoperationorajointventure.(a)JointoperationAjointoperationisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightstotheassets,andobligationsfortheliabilities,relatingtothearrangement.

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

TheCompanyshallrecognisethefollowingitemsinrelationtosharedinterestinajointoperation,andaccountfortheminaccordancewithrelevantaccountingstandardsoftheAccountingStandardsforBusinessEnterprises:

(i)itsassets,includingitsshareofanyassetsheldjointly;(ii)itsliabilities,includingitsshareofanyliabilitiesincurredjointly;(iii)itsrevenuefromthesaleofitsshareoftheoutputarisingfromthejointoperation;(iv)itsshareoftherevenuefromthesaleoftheoutputbythejointoperation;and(v)itsexpenses,includingitsshareofanyexpensesincurredjointly.(b)JointventureAjointventureisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightstothenetassetsofthearrangement.TheCompanyaccountsforitsinvestmentinthejointventurebyapplyingtheequitymethodoflong-termequityinvestment.

3.9CashandCashEquivalentsCashcomprisescashonhandanddepositsthatcanbereadilywithdrawnondemand.Cashequivalentsincludeshort-term(generallywithinthreemonthsofmaturityatacquisition),highlyliquidinvestmentsthatarereadilyconvertibleintoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.

3.10ForeignCurrencyTransactionsandTranslationofForeignCurrencyFinancialStatements(a)DeterminationoftheexchangerateforforeigncurrencytransactionsAtthetimeofinitialrecognitionofaforeigncurrencytransaction,theamountintheforeigncurrencyshallbetranslatedintotheamountinthefunctionalcurrencyatthespotexchangerateofthetransactiondate,oratanexchangeratewhichisdeterminedthroughasystematicandreasonablemethodandisapproximatetothespotexchangerateofthetransactiondate(hereinafterreferredtoastheapproximateexchangerate).(b)TranslationofmonetaryitemsdenominatedinforeigncurrencyonthebalancesheetdateTheforeigncurrencymonetaryitemsshallbetranslatedatthespotexchangerateonthebalancesheetdate.Thebalanceofexchangearisingfromthedifferencebetweenthespotexchangerateonthebalancesheetdateandthespotexchangerateatthetimeofinitialrecognitionorpriortothebalancesheetdateshallberecordedintotheprofitsandlossesatthecurrentperiod.Theforeigncurrencynon-monetaryitemsmeasuredatthehistoricalcostshallstillbetranslatedatthespotexchangerateonthetransactiondate;fortheforeigncurrencynon-monetaryitemsrestatedtoafairvaluemeasurement,shallbetranslatedintotheatthespotexchangerateatthedatewhenthefairvaluewasdetermined,thedifferencebetweentherestatedfunctionalcurrencyamountandtheoriginalfunctionalcurrencyamount

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

shallberecordedintotheprofitsandlossesatthecurrentperiod.(c)TranslationofforeigncurrencyfinancialstatementsBeforetranslatingthefinancialstatementsofforeignoperations,theaccountingperiodandaccountingpolicyshallbeadjustedsoastoconformtotheCompany.Theadjustedforeignoperationfinancialstatementsdenominatedinforeigncurrency(otherthanfunctionalcurrency)shallbetranslatedinaccordancewiththefollowingmethod:

(i)Theassetandliabilityitemsinthestatementoffinancialpositionshallbetranslatedatthespotexchangeratesatthedateofthatstatementoffinancialposition.Theowners’equityitemsexceptundistributedprofitshallbetranslatedatthespotexchangerateswhentheyareincurred.(ii)Theincomeandexpenseitemsinthestatementofprofitandothercomprehensiveincomeshallbetranslatedatthespotexchangeratesorapproximateexchangerateatthedateoftransaction.(iii)Foreigncurrencycashflowsandcashflowsofforeignsubsidiariesshallbetranslatedatthespotexchangerateorapproximateexchangeratewhenthecashflowsareincurred.Theeffectofexchangeratechangesoncashispresentedseparatelyinthestatementofcashflowsasanadjustmentitem.(iv)Thedifferencesarisingfromthetranslationofforeigncurrencyfinancialstatementsshallbepresentedseparatelyas“othercomprehensiveincome”undertheowners’equityitemsoftheconsolidatedstatementoffinancialposition.Whendisposingaforeignoperationinvolvinglossofcontrol,thecumulativeamountoftheexchangedifferencesrelatingtothatforeignoperationrecognisedunderothercomprehensiveincomeinthestatementoffinancialposition,shallbereclassifiedintocurrentprofitorlossaccordingtotheproportiondisposed.

3.11FinancialInstrumentsFinancialinstrumentisanycontractwhichgivesrisetobothafinancialassetofoneentityandafinancialliabilityorequityinstrumentofanotherentity.(a)RecognitionandderecognitionoffinancialinstrumentAfinancialassetorafinancialliabilityshouldberecognisedinthestatementoffinancialpositionwhen,andonlywhen,anentitybecomespartytothecontractualprovisionsoftheinstrument.Afinancialassetcanonlybederecognisedwhenmeetsoneofthefollowingconditions:

(i)Therightstothecontractualcashflowsfromafinancialassetexpire(ii)Thefinancialassethasbeentransferredandmeetsoneofthefollowingderecognitionconditions:

Financialliabilities(orpartthereof)arederecognisedonlywhentheliabilityisextinguished—i.e.,whentheobligationspecifiedinthecontractisdischargedorcancelledor

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

expires.AnexchangeoftheCompany(borrower)andlenderofdebtinstrumentsthatcarrysignificantlydifferenttermsorasubstantialmodificationofthetermsofanexistingliabilityarebothaccountedforasanextinguishmentoftheoriginalfinancialliabilityandtherecognitionofanewfinancialliability.Purchaseorsaleoffinancialassetsinaregular-wayshallberecognisedandderecognisedusingtradedateaccounting.Aregular-waypurchaseorsaleoffinancialassetsisatransactionunderacontractwhosetermsrequiredeliveryoftheassetwithinthetimeframeestablishedgenerallybyregulationsorconventioninthemarketplaceconcerned.Tradedateisthedateatwhichtheentitycommitsitselftopurchaseorsellanasset.(b)ClassificationandmeasurementoffinancialassetsAtinitialrecognition,theCompanyclassifieditsfinancialassetbasedonboththebusinessmodelformanagingthefinancialassetandthecontractualcashflowcharacteristicsofthefinancialasset:financialassetatamortisedcost,financialassetatfairvaluethroughprofitorloss(FVTPL)andfinancialassetatfairvaluethroughothercomprehensiveincome(FVTOCI).Reclassificationoffinancialassetsispermittedif,andonlyif,theobjectiveoftheentity’sbusinessmodelformanagingthosefinancialassetschanges.Inthiscircumstance,allaffectedfinancialassetsshallbereclassifiedonthefirstdayofthefirstreportingperiodafterthechangesinbusinessmodel;otherwisethefinancialassetscannotbereclassifiedafterinitialrecognition.Financialassetsshallbemeasuredatinitialrecognitionatfairvalue.ForfinancialassetsmeasuredatFVTPL,transactioncostsarerecognisedincurrentprofitorloss.ForfinancialassetsnotmeasuredatFVTPL,transactioncostsshouldbeincludedintheinitialmeasurement.Notesreceivableoraccountsreceivablethatarisefromsalesofgoodsorrenderingofservicesareinitiallymeasuredatthetransactionpricedefinedintheaccountingstandardofrevenuewherethetransactiondoesnotincludeasignificantfinancingcomponent.Subsequentmeasurementoffinancialassetswillbebasedontheircategories:

(i)FinancialassetatamortisedcostThefinancialassetatamortisedcostcategoryofclassificationapplieswhenboththefollowingconditionsaremet:thefinancialassetisheldwithinthebusinessmodelwhoseobjectiveistoholdfinancialassetsinordertocollectcontractualcashflows,andthecontractualtermofthefinancialassetgivesriseonspecifieddatestocashflowsthataresolelypaymentofprincipalandinterestontheprincipalamountoutstanding.Thesefinancialassetsaresubsequentlymeasuredatamortisedcostbyadoptingtheeffectiveinterestratemethod.Anygainorlossarisingfromderecognitionaccordingtotheamortizationundereffectiveinterestratemethodorimpairmentarerecognisedincurrentprofitorloss.(ii)Financialassetatfairvaluethroughothercomprehensiveincome(FVTOCI)ThefinancialassetatFVTOCIcategoryofclassificationapplieswhenboththefollowingconditionsaremet:thefinancialassetisheldwithinthebusinessmodelwhoseobjectiveisachievedbybothcollectingcontractualcashflowsandsellingfinancialassets,andthe

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contractualtermofthefinancialassetgivesriseonspecifieddatestocashflowsthataresolelypaymentofprincipleandinterestontheprincipalamountoutstanding.Allchangesinfairvaluearerecognisedinothercomprehensiveincomeexceptforgainorlossarisingfromimpairmentorexchangedifferences,whichshouldberecognisedincurrentprofitorloss.Atderecognition,cumulativegainorlosspreviouslyrecognisedunderOCIisreclassifiedtocurrentprofitorloss.However,interestincomecalculatedbasedontheeffectiveinterestrateisincludedincurrentprofitorloss.TheCompanymakeanirrevocabledecisiontodesignatepartofnon-tradingequityinstrumentinvestmentsasmeasuredthroughFVTOCI.Allchangesinfairvaluearerecognisedinothercomprehensiveincomeexceptfordividendincomerecognisedincurrentprofitorloss.Atderecognition,cumulativegainorlossarereclassifiedtoretainedearnings.(iii)Financialassetatfairvaluethroughprofitorloss(FVTPL)Financialassetexceptforabovementionedfinancialassetatamortisedcostorfinancialassetatfairvaluethroughothercomprehensiveincome(FVTOCI),shouldbeclassifiedasfinancialassetatfairvaluethroughprofitorloss(FVTPL).Thesefinancialassetsshouldbesubsequentlymeasuredatfairvalue.Allthechangesinfairvalueareincludedincurrentprofitorloss.(c)ClassificationandmeasurementoffinancialliabilitiesTheCompanyclassifiedthefinancialliabilitiesasfinancialliabilitiesatfairvaluethroughprofitorloss(FVTPL),loancommitmentsatabelow-marketinterestrateandfinancialguaranteecontractsandfinancialassetatamortisedcost.Subsequentmeasurementoffinancialassetswillbebasedontheclassification:

(i)Financialliabilitiesatfairvaluethroughprofitorloss(FVTPL)Held-for-tradingfinancialliabilities(includingderivativesthatarefinancialliabilities)andfinancialliabilitiesdesignatedatFVTPLareclassifiedasfinancialliabilitiesatFVTP.Afterinitialrecognition,anygainorloss(includinginterestexpense)arerecognisedincurrentprofitorlossexceptforthosehedgeaccountingisapplied.ForfinancialliabilitythatisdesignatedasatFVTPL,changesinthefairvalueofthefinancialliabilitythatisattributabletochangesintheowncreditriskoftheissuershallbepresentedinothercomprehensiveincome.Atderecognition,cumulativegainorlosspreviouslyrecognisedunderOCIisreclassifiedtoretainedearnings.(ii)LoancommitmentsandfinancialguaranteecontractsLoancommitmentisacommitmentbytheCompanytoprovidealoantocustomerunderspecifiedcontractterms.Theprovisionofimpairmentlossesofloancommitmentsshallberecognisedbasedonexpectedcreditlossesmodel.FinancialguaranteecontractisacontractthatrequirestheCompanytomakespecifiedpaymentstoreimbursetheholderforalossitincursbecauseaspecifieddebtorfailstomakepaymentwhendueinaccordancewiththeoriginalormodifiedtermsofadebtinstrument.

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Financialguaranteecontractsliabilityshallbesubsequentlymeasuredatthehigherof:Theamountofthelossallowancerecognisedaccordingtotheimpairmentprinciplesoffinancialinstruments;andtheamountinitiallyrecognisedlessthecumulativeamountofincomerecognisedinaccordancewiththerevenueprinciples.(iii)FinancialliabilitiesatamortisedcostAfterinitialrecognition,theCompanymeasuredotherfinancialliabilitiesatamortisedcostusingtheeffectiveinterestmethod.Exceptforspecialsituation,financialliabilitiesandequityinstrumentshouldbeclassifiedinaccordancewiththefollowingprinciples:

(i)IftheCompanyhasnounconditionalrighttoavoiddeliveringcashoranotherfinancialinstrumenttofulfillacontractualobligation,thiscontractualobligationmeetthedefinitionoffinancialliabilities.Somefinancialinstrumentsdonotcomprisetermsandconditionsrelatedtoobligationsofdeliveringcashoranotherfinancialinstrumentexplicitly,theymayincludecontractualobligationindirectlythroughothertermsandconditions.(ii)IfafinancialinstrumentmustormaybesettledintheCompany'sownequityinstruments,itshouldbeconsideredthattheCompany’sownequityinstrumentsarealternativesofcashoranotherfinancialinstrument,ortoentitletheholderoftheequityinstrumentstosharingtheremainingrightsoverthenetassetsoftheissuer.Iftheformeristhecase,theinstrumentisaliabilityoftheissuer;otherwise,itisanequityinstrumentoftheissuer.Undersomecircumstances,itisregulatedinthecontractthatthefinancialinstrumentmustormaybesettledintheCompany'sownequityinstruments,where,amountofcontractualrightsandobligationsarecalculatedbymultiplyingthenumberoftheequityinstrumentstobeavailableordeliveredbyitsfairvalueuponsettlement.Suchcontractsshallbeclassifiedasfinancialliabilities,regardlessthattheamountofcontractualrightsandliabilitiesisfixed,orfluctuatetotallyorpartiallywithvariablesotherthanmarketpriceoftheentity’sownequityinstruments(suchasinterestrate,priceofsomekindofgoodsorsomekindoffinancialinstrument).(d)DerivativesandembeddedderivativesAtinitialrecognition,derivativesshallbemeasuredatfairvalueatthedateofderivativecontractsaresignedandsubsequentlymeasuredatfairvalue.Thederivativewithapositivefairvalueshallberecognizedasanasset,andwithanegativefairvalueshallberecognisedasaliability.Gainsorlossesarisingfromthechangesinfairvalueofderivativesshallberecogniseddirectlyintocurrentprofitorlossexceptfortheeffectiveportionofcashflowhedgeswhichshallberecognisedinothercomprehensiveincomeandreclassifiedintocurrentprofitorlosswhenthehedgeditemsaffectprofitorloss.Anembeddedderivativeisacomponentofahybridcontractwithafinancialassetasahost,theCompanyshallapplytherequirementsoffinancialassetclassificationtotheentirehybridcontract.Ifahostthatisnotafinancialassetandthehybridcontractisnotmeasuredatfair

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valuewithchangesinfairvaluerecognisedinprofitorloss,andtheeconomiccharacteristicsandrisksoftheembeddedderivativearenotcloselyrelatedtotheeconomiccharacteristicsandrisksofthehost,andaseparateinstrumentwiththesametermsastheembeddedderivativewouldmeetthedefinitionofaderivative,theembeddedderivativeshallbeseparatedfromthehybridinstrumentandaccountedforasaseparatederivativeinstrument.IftheCompanyisunabletomeasurethefairvalueoftheembeddedderivativeattheacquisitiondateorsubsequentlyatthebalancesheetdate,theentirehybridcontractisdesignatedasfinancialassetsorfinancialliabilitiesatfairvaluethroughprofitorloss.(e)ImpairmentoffinancialinstrumentTheCompanyshallrecognisealossallowancebasedonexpectedcreditlossesonafinancialassetthatismeasuredatamortisedcost,adebtinvestmentatfairvaluethroughothercomprehensiveincome,acontractasset,aleasereceivable,aloancommitmentandafinancialguaranteecontract.(i)MeasurementofexpectedcreditlossesExpectedcreditlossesaretheweightedaverageofcreditlossesofthefinancialinstrumentswiththerespectiverisksofadefaultoccurringastheweights.CreditlossisthedifferencebetweenallcontractualcashflowsthatareduetotheCompanyinaccordancewiththecontractandallthecashflowsthattheCompanyexpectstoreceive(ieallcashshortfalls),discountedattheoriginaleffectiveinterestrateorcredit-adjustedeffectiveinterestrateforpurchasedororiginatedcredit-impairedfinancialassets.Lifetimeexpectedcreditlossesaretheexpectedcreditlossesthatresultfromallpossibledefaulteventsovertheexpectedlifeofafinancialinstrument.12-monthexpectedcreditlossesaretheportionoflifetimeexpectedcreditlossesthatrepresenttheexpectedcreditlossesthatresultfromdefaulteventsonafinancialinstrumentthatarepossiblewithinthe12monthsafterthereportingdate(ortheexpectedlifetime,iftheexpectedlifeofafinancialinstrumentislessthan12months).Ateachreportingdate,theCompanyclassifiesfinancialinstrumentsintothreestagesandmakesprovisionsforexpectedcreditlossesaccordingly.Afinancialinstrumentofwhichthecreditriskhasnotsignificantlyincreasedsinceinitialrecognitionisatstage1.TheCompanyshallmeasurethelossallowanceforthatfinancialinstrumentatanamountequalto12-monthexpectedcreditlosses.Afinancialinstrumentwithasignificantincreaseincreditrisksinceinitialrecognitionbutisnotconsideredtobecredit-impairedisatstage2.TheCompanyshallmeasurethelossallowanceforthatfinancialinstrumentatanamountequaltothelifetimeexpectedcreditlosses.Afinancialinstrumentisconsideredtobecredit-impairedasattheendofthereportingperiodisatstage3.TheCompanyshallmeasurethelossallowanceforthatfinancialinstrumentatanamountequaltothelifetimeexpectedcreditlosses.TheCompanymayassumethatthecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognitionifthefinancialinstrumentisdeterminedtohavelowcreditriskatthereportingdateandmeasurethelossallowanceforthatfinancialinstrumentat

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anamountequalto12-monthexpectedcreditlosses.Forfinancialinstrumentatstage1,stage2andthosehavelowcreditrisk,theinterestrevenueshallbecalculatedbyapplyingtheeffectiveinterestratetothegrosscarryingamountofafinancialasset(ie,impairmentlossnotbeendeducted).Forfinancialinstrumentatstage3,interestrevenueshallbecalculatedbyapplyingtheeffectiveinterestratetotheamortisedcostafterdeductingofimpairmentloss.Fornotesreceivable,accountsreceivableandaccountsreceivablefinancing,nomatteritcontainsasignificantfinancingcomponentornot,theCompanyshallmeasurethelossallowanceatanamountequaltothelifetimeexpectedcreditlosses.ReceivablesForthenotesreceivable,accountsreceivable,otherreceivables,accountsreceivablefinancingandlong-termreceivableswhicharedemonstratedtobeimpairedbyanyobjectiveevidence,orapplicableforindividualassessment,theCompanyshallindividuallyassessforimpairmentandrecognisethelossallowanceforexpectedcreditlosses.IftheCompanydeterminesthatnoobjectiveevidenceofimpairmentexistsfornotesreceivable,accountsreceivable,otherreceivables,accountsreceivablefinancingandlong-termreceivables,ortheexpectedcreditlossofasinglefinancialassetcannotbeassessedatreasonablecost,suchnotesreceivable,accountsreceivable,otherreceivables,accountsreceivablefinancingandlong-termreceivablesshallbedividedintoseveralgroupswithsimilarcreditriskcharacteristicsandcollectivelycalculatedtheexpectedcreditloss.Thedeterminationbasisofgroupsisasfollowing:

Determinationbasisofnotesreceivableisasfollowing:

Group1:CommercialacceptancebillsGroup2:BankacceptancebillsForeachgroup,theCompanycalculatesexpectedcreditlossesthroughdefaultexposureandthelifetimeexpectedcreditlossesrate,takingreferencetohistoricalexperienceforcreditlossesandconsideringcurrentconditionandexpectationforthefutureeconomicsituation.Determinationbasisofaccountsreceivableisasfollowing:

Group1:AccountsreceivablesduefromcustomersForeachgroup,theCompanycalculatesexpectedcreditlossesthroughpreparinganaginganalysisschedulewiththelifetimeexpectedcreditlossesrate,takingreferencetohistoricalexperienceforcreditlossesandconsideringcurrentconditionandexpectationforthefutureeconomicsituation.Determinationbasisofotherreceivablesisasfollowing:

Group1:DepositandguaranteereceivableGroup2:EmployeeadvancepaymentsGroup3:Others

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Foreachgroup,theCompanycalculatesexpectedcreditlossesthroughdefaultexposureandthe12-monthsorlifetimeexpectedcreditlossesrate,takingreferencetohistoricalexperienceforcreditlossesandconsideringcurrentconditionandexpectationforthefutureeconomicsituation.TheCompanycalculatestheagingofreceivables(notesreceivable,accountsreceivable,andotherreceivables)basedontheperiodfromthetransactiondatetothebalancesheetdatetodeterminecreditriskcharacteristicgroups.DebtinvestmentandotherdebtinvestmentFordebtinvestmentandotherdebtinvestment,theCompanyshallcalculatetheexpectedcreditlossthroughthedefaultexposureandthe12-monthorlifetimeexpectedcreditlossratebasedonthenatureoftheinvestment,counterpartyandthetypeofriskexposure.(ii)LowcreditriskIfthefinancialinstrumenthasalowriskofdefault,theborrowerhasastrongcapacitytomeetitscontractualcashflowobligationsintheneartermandadversechangesineconomicandbusinessconditionsinthelongertermmay,butwillnotnecessarily,reducetheabilityoftheborrowertofulfillitscontractualcashflowobligations.(iii)SignificantincreaseincreditriskTheCompanyshallassesswhetherthecreditriskonafinancialinstrumenthasincreasedsignificantlysinceinitialrecognition,usingthechangeintheriskofadefaultoccurringovertheexpectedlifeofthefinancialinstrument,throughthecomparisonoftheriskofadefaultoccurringonthefinancialinstrumentasatthereportingdatewiththeriskofadefaultoccurringonthefinancialinstrumentasatthedateofinitialrecognition.Tomakethatassessment,theCompanyshallconsiderreasonableandsupportableinformation,thatisavailablewithoutunduecostoreffort,andthatisindicativeofsignificantincreasesincreditrisksinceinitialrecognition,includingforward-lookinginformation.TheinformationconsideredbytheCompanyareasfollowing:

?Significantchangesininternalpriceindicatorsofcreditriskasaresultofachangeincreditrisksinceinception?Existingorforecastadversechangeinthebusiness,financialoreconomicconditionsoftheborrowerthatresultsinasignificantchangeintheborrower’sabilitytomeetitsdebtobligations；?Anactualorexpectedsignificantchangeintheoperatingresultsoftheborrower;Anactualorexpectedsignificantadversechangeintheregulatory,economic,ortechnologicalenvironmentoftheborrower；?Significantchangesinthevalueofthecollateralsupportingtheobligationorinthequalityofthird-partyguaranteesorcreditenhancements,whichareexpectedtoreducetheborrower’seconomicincentivetomakescheduledcontractualpaymentsortootherwiseinfluencetheprobabilityofadefaultoccurring;

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?Significantchangethatareexpectedtoreducetheborrower’seconomicincentivetomakescheduledcontractualpayments;?Expectedchangesintheloandocumentationincludinganexpectedbreachofcontractthatmayleadtocovenantwaiversoramendments,interestpaymentholidays,interestratestep-ups,requiringadditionalcollateralorguarantees,orotherchangestothecontractualframeworkoftheinstrument；?Significantchangesintheexpectedperformanceandbehavioroftheborrower；?Contractualpaymentsaremorethan30dayspastdue.Dependingonthenatureofthefinancialinstruments,theCompanyshallassesswhetherthecreditriskhasincreasedsignificantlysinceinitialrecognitiononanindividualfinancialinstrumentoragroupoffinancialinstruments.Whenassessedbasedonagroupoffinancialinstruments,theCompanycangroupfinancialinstrumentsonthebasisofsharedcreditriskcharacteristics,forexample,pastdueinformationandcreditriskrating.Generally,theCompanyshalldeterminethecreditriskonafinancialassethasincreasedsignificantlysinceinitialrecognitionwhencontractualpaymentsaremorethan30dayspastdue.TheCompanycanonlyrebutthispresumptioniftheCompanyhasreasonableandsupportableinformationthatisavailablewithoutunduecostoreffort,thatdemonstratesthatthecreditriskhasnotincreasedsignificantlysinceinitialrecognitioneventhoughthecontractualpaymentsaremorethan30dayspastdue.(iv)Credit-impairedfinancialassetTheCompanyshallassessateachreportingdatewhetherthecreditimpairmenthasoccurredforfinancialassetatamortisedcostanddebtinvestmentatfairvaluethroughothercomprehensiveincome.Afinancialassetiscredit-impairedwhenoneormoreeventsthathaveadetrimentalimpactontheestimatedfuturecashflowsofthatfinancialassethaveoccurred.Evidencesthatafinancialassetiscredit-impairedincludeobservabledataaboutthefollowingevents:

Significantfinancialdifficultyoftheissuerortheborrower；abreachofcontract,suchasadefaultorpastdueevent;thelender(s)oftheborrower,foreconomicorcontractualreasonsrelatingtotheborrower’sfinancialdifficulty,havinggrantedtotheborroweraconcession(s)thatthelender(s)wouldnototherwiseconsider；itisbecomingprobablethattheborrowerwillenterbankruptcyorotherfinancialreorganisation;thedisappearanceofanactivemarketforthatfinancialassetbecauseoffinancialdifficulties；thepurchaseororiginationofafinancialassetatadeepdiscountthatreflectstheincurredcreditlosses.(v)PresentationofimpairmentofexpectedcreditlossInordertoreflectthechangesofcreditriskoffinancialinstrumentsinceinitialrecognition,theCompanyshallateachreportingdateremeasuretheexpectedcreditlossandrecogniseinprofitorloss,asanimpairmentgainorloss,theamountofexpectedcreditlossesaddition(orreversal).Forfinancialassetatamortisedcost,thelossallowanceshallreducethecarrying

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amountofthefinancialassetinthestatementoffinancialposition;fordebtinvestmentatfairvaluethroughothercomprehensiveincome,thelossallowanceshallberecognisedinothercomprehensiveincomeandshallnotreducethecarryingamountofthefinancialassetinthestatementoffinancialposition.(vi)Write-offTheCompanyshalldirectlyreducethegrosscarryingamountofafinancialassetwhentheCompanyhasnoreasonableexpectationsofrecoveringthecontractualcashflowofafinancialassetinitsentiretyoraportionthereof.Suchwrite-offconstitutesaderecognitionofthefinancialasset.ThiscircumstanceusuallyoccurswhentheCompanydeterminesthatthedebtorhasnoassetsorsourcesofincomethatcouldgeneratesufficientcashflowtorepaythewrite-offamount.Recoveryoffinancialassetwrittenoffshallberecognisedinprofitorlossasreversalofimpairmentloss.(f)TransferoffinancialassetsTransferoffinancialassetsreferstofollowingtwosituations:

?Transfersthecontractualrightstoreceivethecashflowsofthefinancialasset;?Transferstheentireorapartofafinancialassetandretainsthecontractualrightstoreceivethecashflowsofthefinancialasset,butassumesacontractualobligationtopaythecashflowstooneormorerecipients.(i)DerecognitionoftransferredassetsIftheCompanytransferssubstantiallyalltherisksandrewardsofownershipofthefinancialasset,orneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipofthefinancialassetbuthasnotretainedcontrolofthefinancialasset,thefinancialassetshallbederecognised.WhethertheCompanyhasretainedcontrolofthetransferredassetdependsonthetransferee’sabilitytoselltheasset.Ifthetransfereehasthepracticalabilitytoselltheassetinitsentiretytoanunrelatedthirdpartyandisabletoexercisethatabilityunilaterallyandwithoutneedingtoimposeadditionalrestrictionsonthetransfer,theCompanyhasnotretainedcontrol.TheCompanyjudgeswhetherthetransferoffinancialassetqualifiesforderecognitionbasedonthesubstanceofthetransfer.Ifthetransferoffinancialassetqualifiesforderecognitioninitsentirety,thedifferencebetweenthefollowingshallberecognisedinprofitorloss:

?Thecarryingamountoftransferredfinancialasset;?Thesumofconsiderationreceivedandthepartderecognisedofthecumulativechangesinfairvaluepreviouslyrecognisedinothercomprehensiveincome(ThefinancialassetsinvolvedinthetransferareclassifiedasfinancialassetsatfairvaluethroughothercomprehensiveincomeinaccordancewithArticle18oftheAccountingStandardsfor

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BusinessEnterprises-RecognitionandMeasurementofFinancialInstruments).Ifthetransferredassetisapartofalargerfinancialassetandtheparttransferredqualifiesforderecognition,thepreviouscarryingamountofthelargerfinancialassetshallbeallocatedbetweenthepartthatcontinuestoberecognised(Forthispurpose,aretainedservicingassetshallbetreatedasapartthatcontinuestoberecognised)andthepartthatisderecognised,basedontherelativefairvaluesofthosepartsonthedateofthetransfer.Thedifferencebetweenfollowingtwoamountsshallberecognisedinprofitorloss:

?Thecarryingamount(measuredatthedateofderecognition)allocatedtothepartderecognised；?Thesumoftheconsiderationreceivedforthepartderecognisedandpartderecognisedofthecumulativechangesinfairvaluepreviouslyrecognisedinothercomprehensiveincome(ThefinancialassetsinvolvedinthetransferareclassifiedasfinancialassetsatfairvaluethroughothercomprehensiveincomeinaccordancewithArticle18oftheAccountingStandardsforBusinessEnterprises-RecognitionandMeasurementofFinancialInstruments).(ii)ContinuinginvolvementintransferredassetsIftheCompanyneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipofatransferredasset,andretainscontrolofthetransferredasset,theCompanyshallcontinuetorecognisethetransferredassettotheextentofitscontinuinginvolvementandalsorecogniseanassociatedliability.TheextentoftheCompany’scontinuinginvolvementinthetransferredassetistheextenttowhichitisexposedtochangesinthevalueofthetransferredasset(iii)ContinuetorecognisethetransferredassetsIftheCompanyretainssubstantiallyalltherisksandrewardsofownershipofthetransferredfinancialasset,theCompanyshallcontinuetorecognisethetransferredassetinitsentiretyandtheconsiderationreceivedshallberecognisedasafinancialliability.Thefinancialassetandtheassociatedfinancialliabilityshallnotbeoffset.Insubsequentaccountingperiod,theCompanyshallcontinuouslyrecogniseanyincome(gain)arisingfromthetransferredassetandanyexpense(loss)incurredontheassociatedliability.(g)OffsettingfinancialassetsandfinancialliabilitiesFinancialassetsandfinancialliabilitiesshallbepresentedseparatelyinthestatementoffinancialpositionandshallnotbeoffset.Whenmeetsthefollowingconditions,financialassetsandfinancialliabilitiesshallbeoffsetandthenetamountpresentedinthestatementoffinancialposition:

TheCompanycurrentlyhasalegallyenforceablerighttosetofftherecognisedamounts;TheCompanyintendseithertosettleonanetbasis,ortorealisetheassetandsettletheliabilitysimultaneously.Inaccountingforatransferofafinancialassetthatdoesnotqualifyforderecognition,the

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Companyshallnotoffsetthetransferredassetandtheassociatedliability.(h)DeterminationoffairvalueoffinancialinstrumentsDeterminationoffairvalueoffinancialassetsandfinancialliabilitiespleaserefertoNote

3.12

3.12FairValueMeasurementFairvaluereferstothepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.TheCompanydeterminesfairvalueoftherelatedassetsandliabilitiesbasedonmarketvalueintheprincipalmarket,orintheabsenceofaprincipalmarket,inthemostadvantageousmarketpricefortherelatedassetorliability.Thefairvalueofanassetoraliabilityismeasuredusingtheassumptionsthatmarketparticipantswouldusewhenpricingtheassetorliability,assumingthatmarketparticipantsactintheireconomicbestinterest.Theprincipalmarketisthemarketinwhichtransactionsforanassetorliabilitytakeplacewiththegreatestvolumeandfrequency.Themostadvantageousmarketisthemarketwhichmaximizesthevaluethatcouldbereceivedfromsellingtheassetandminimizesthevaluewhichisneededtobepaidinordertotransferaliability,consideringtheeffectoftransportcostsandtransactioncostsboth.Iftheactivemarketofthefinancialassetorfinancialliabilityexists,theCompanyshallmeasurethefairvalueusingthequotedpriceintheactivemarket.Iftheactivemarketofthefinancialinstrumentisnotavailable,theCompanyshallmeasurethefairvalueusingvaluationtechniques.Afairvaluemeasurementofanon-financialassettakesintoaccountamarketparticipant’sabilitytogenerateeconomicbenefitsbyusingtheassetinitshighestandbestuseorbysellingittoanothermarketparticipantthatwouldusetheassetinitshighestandbestuse.?ValuationtechniquesTheCompanyusesvaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataareavailabletomeasurefairvalue,includingthemarketapproach,theincomeapproachandthecostapproach.TheCompanyshallusevaluationtechniquesconsistentwithoneormoreofthoseapproachestomeasurefairvalue.Ifmultiplevaluationtechniquesareusedtomeasurefairvalue,theresultsshallbeevaluatedconsideringthereasonablenessoftherangeofvaluesindicatedbythoseresults.Afairvaluemeasurementisthepointwithinthatrangethatismostrepresentativeoffairvalueinthecircumstances.Whenusingthevaluationtechnique,theCompanyshallgivetheprioritytorelevantobservableinputs.Theunobservableinputscanonlybeusedwhenrelevantobservableinputsisnotavailableorpracticallywouldnotbeobtained.Observableinputsrefertotheinformationwhichisavailablefrommarketandreflectstheassumptionsthatmarketparticipantswouldusewhenpricingtheassetorliability.UnobservableInputsrefertotheinformationwhichisnotavailablefrommarketandithastobedevelopedusingthebest

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informationavailableinthecircumstancesfromtheassumptionsthatmarketparticipantswouldusewhenpricingtheassetorliability.?FairvaluehierarchyToCompanyestablishesafairvaluehierarchythatcategorisesintothreelevelstheinputstovaluationtechniquesusedtomeasurefairvalue.ThefairvaluehierarchygivesthehighestprioritytoLevel1inputsandsecondtotheLevel2inputsandthelowestprioritytoLevel3inputs.Level1inputsarequotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilitiesthattheentitycanaccessatthemeasurementdate.Level2inputsareinputsotherthanquotedpricesincludedwithinLevel1thatareobservablefortheassetorliability,eitherdirectlyorindirectly.Level3inputsareunobservableinputsfortheassetorliability.

3.13Inventories(a)ClassificationofinventoriesInventoriesarefinishedgoodsorproductsheldforsaleintheordinarycourseofbusiness,intheprocessofproductionforsuchsale,orintheformofmaterialsorsuppliestobeconsumedintheproductionprocessorintherenderingofservices,includingrawmaterials,workinprogress,andgoodsinstock,etc.(b)MeasurementmethodofcostofinventoriessoldorusedThecostofrawmaterialsandgoodsinstock(exceptthebrandedluxurywatchinventory)usedorsoldisdeterminedontheweightedaveragebasis,whilethecostofthebrandedluxurywatchinventoryusedorsoldisdeterminedonindividualvaluationmethodbasis.(c)InventorysystemTheperpetualinventorysystemisadopted.Theinventoriesshouldbecountedatleastonceayear,andsurplusorlossesofinventorystocktakingshallbeincludedincurrentprofitandloss.(d)RecognitionCriteriaandProvisionforimpairmentofinventoryInventoriesarestatedatthelowerofcostandnetrealizablevalue.Theexcessofcostovernetrealizablevalueoftheinventoriesisrecognisedasprovisionforimpairmentofinventory,andrecognisedincurrentprofitorloss.Netrealizablevalueoftheinventoryshouldbedeterminedonthebasisofreliableevidenceobtained,andfactorssuchaspurposeofholdingtheinventoryandimpactofpostbalancesheeteventshallbeconsidered.(i)Innormaloperationprocess,finishedgoods,productsandmaterialsfordirectsale,theirnetrealizablevaluesaredeterminedatestimatedsellingpriceslessestimatedsellingexpensesandrelevanttaxesandsurcharges;forinventoriesheldtoexecutesalescontractorservicecontract,theirnetrealizablevaluesarecalculatedonthebasisofcontractprice.IfthequantitiesofinventoriesspecifiedinsalescontractsarelessthanthequantitiesheldbytheCompany,thenetrealizablevalueoftheexcessportionofinventoriesshallbebasedongeneralsellingprices.Netrealizablevalueofmaterialsheldforsaleshallbemeasuredbasedonmarketprice.

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(ii)Formaterialsinstockneedtobeprocessed,intheordinarycourseofproductionandbusiness,netrealisablevalueisdeterminedattheestimatedsellingpricelesstheestimatedcostsofcompletion,theestimatedsellingexpensesandrelevanttaxes.Ifthenetrealisablevalueofthefinishedproductsproducedbysuchmaterialsishigherthanthecost,thematerialsshallbemeasuredatcost;ifadeclineinthepriceofmaterialsindicatesthatthecostofthefinishedproductsexceedsitsnetrealisablevalue,thematerialsaremeasuredatnetrealisablevalueanddifferencesshallberecognisedattheprovisionforimpairment.(iii)Provisionsforinventoryimpairmentaregenerallydeterminedonanindividualbasis.Forinventorieswithlargequantityandlowunitprice,theprovisionsforinventoryimpairmentaredeterminedongroupbasis.(iv)Ifanyfactorrenderingwrite-downsoftheinventorieshasbeeneliminatedatthereportingdate,theamountswrittendownarerecoveredandreversedtotheextentoftheinventoryimpairment,whichhasbeenprovidedfor.Thereversalshallbeincludedinprofitorloss.

3.14ContractAssetsandContractLiabilitiesTheCompanyshallpresentcontractassetsorcontractliabilitiesinthestatementoffinancialposition,dependingontherelationshipbetweentheCompany’ssatisfyingaperformanceobligationandthecustomer’spayment.AcontractassetshallbepresentediftheCompanyhastherighttoconsiderationinexchangeforgoodsorservicesthattheCompanyhastransferredtoacustomerwhenthatrightisconditionedonsomethingotherthanthepassageoftime.AcontractliabilityshallbepresentediftheCompanyhastheobligationtotransfergoodsorservicestoacustomerforwhichtheCompanyhasreceivedconsideration(ortheamountisdue)fromthecustomer.MethodofdeterminationandaccountingforexpectedcreditlossforcontractassetspleaserefertoNote3.11.Contractassetsandcontractliabilitiesshallbepresentedseparatelyinthestatementoffinancialposition.Thecontractassetandcontractliabilityforthesamecontractshallbepresentedonanetbasis.Anetbalanceshallbelistedintheitemof"Contractassets"or"Othernon-currentassets"accordingtoitsliquidity;acreditbalanceshallbelistedintheitemof"Contractliabilities"or"Othernon-currentliabilities"accordingtoitsliquidity.Contractassetsandcontractliabilitiesfordifferentcontractscannotbeoffset.

3.15ContractcostsContractcostsincludecoststofulfillacontractandthecoststoobtainacontract.TheCompanyshallrecogniseanassetfromthecostsincurredtofulfillacontractonlyifthosecostsmeetallofthefollowingcriteria:

(i)thecostsrelatedirectlytoacontractortoananticipatedcontract,including:directlabour,directmaterials,manufacturingcosts(orsimilarcosts),coststhatareexplicitlychargeabletothecustomerunderthecontractandothercoststhatareincurredonlybecauseanentityenteredintothecontract;

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(ii)thecostsenhanceresourcesoftheCompanythatwillbeusedinsatisfyingperformanceobligationsinthefuture;and(iii)thecostsareexpectedtoberecovered.TheincrementalcostsofobtainingacontractshallberecognisedasanassetiftheCompanyexpectstorecoverthem.Anassetrelatedtocontractcostsshallbeamortisedonasystematicbasisthatisconsistentwiththerevenuerecognitionofthegoodsorservicestowhichtheassetrelates.TheCompanyrecognisesthecontractacquisitioncostsasanexpensewhenincurrediftheamortisationperiodoftheassetthattheCompanyotherwisewouldhaverecognisedisoneyearorless.TheCompanyshallaccruetheprovisionforimpairment,recogniseanimpairmentlossinprofitorlosstotheextentthatthecarryingamountofanassetrelatedtothecontractcostexceedsthedifferenceofbelowtwoitems,andfurtherconsiderwhethertheestimatedliabilityrelatedtotheonerouscontractneedstobeaccrued:

(i)theremainingamountofconsiderationthattheCompanyexpectstoreceiveinexchangeforthegoodsorservicestowhichtheassetrelates;less(ii)thecoststhatrelatedirectlytoprovidingthosegoodsorservicesandthathavenotbeenrecognisedasexpenses.TheCompanyshallrecogniseinprofitorlossareversalofsomeorallofanimpairmentlosspreviouslyrecognisedwhentheimpairmentconditionsnolongerexistorhaveimproved.Theincreasedcarryingamountoftheassetshallnotexceedtheamountthatwouldhavebeendetermined(netofamortisation)ifnoimpairmentlosshadbeenrecognisedpreviously.Providingthatthecoststofulfilacontractsatisfytherequirementtoberecognisedasanasset,theCompanyshallpresentthemintheaccount“Inventory”ifthecontracthasanoriginalexpecteddurationofoneyear(oranormaloperatingcycle)orless,orintheaccount“Othernon-currentassets”ifthecontracthasanoriginalexpecteddurationofmorethanoneyear(oranormaloperatingcycle).Providingthatthecoststoobtainacontractsatisfytherequirementtoberecgonisedasanasset,theCompanyshallpresentthemintheaccount“Othercurrentasset”ifthecontracthasanoriginalexpecteddurationofoneyear(oranormaloperatingcycle)orless,orintheaccount“Othernon-currentassets”ifthecontracthasanoriginalexpecteddurationofmorethanoneyear(oranormaloperatingcycle).

3.16Long-termEquityInvestmentsLong-termequityinvestmentsrefertoequityinvestmentswhereaninvestorhascontrolof,orsignificantinfluenceover,aninvestee,aswellasequityinvestmentsinjointventures.AssociatesoftheCompanyarethoseentitiesoverwhichtheCompanyhassignificantinfluence.(a)DeterminationbasisofjointcontrolorsignificantinfluenceovertheinvesteeJointcontrolistherelevantagreedsharingofcontroloveranarrangement,andthearranged

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relevantactivitymustbedecidedunderunanimousconsentofthepartiessharingcontrol.InassessingwhethertheCompanyhasjointcontrolofanarrangement,theCompanyshallassessfirstwhetheralltheparties,oragroupoftheparties,controlthearrangement.Whenalltheparties,oragroupoftheparties,consideredcollectively,areabletodirecttheactivitiesofthearrangement,thepartiescontrolthearrangementcollectively.ThentheCompanyshallassesswhetherdecisionsabouttherelevantactivitiesrequiretheunanimousconsentofthepartiesthatcollectivelycontrolthearrangement.Iftwoormoregroupsofthepartiescouldcontrolthearrangementcollectively,itshallnotbeassessedashavejointcontrolofthearrangement.Whenassessingthejointcontrol,theprotectiverightsarenotconsidered.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutisnotcontrolorjointcontrolofthosepolicies.Indeterminationofsignificantinfluenceoveraninvestee,theCompanyshouldconsidernotonlytheexistingvotingrightsdirectlyorindirectlyheldbutalsotheeffectofpotentialvotingrightsheldbytheCompanyandotherentitiesthatcouldbecurrentlyexercisedorconverted,includingtheeffectofsharewarrants,shareoptionsandconvertiblecorporatebondsthatissuedbytheinvesteeandcouldbeconvertedincurrentperiod.IftheCompanyholds,directlyorindirectly20%ormorebutlessthan50%ofthevotingpoweroftheinvestee,itispresumedthattheCompanyhassignificantinfluenceoftheinvestee,unlessitcanbeclearlydemonstratedthatinsuchcircumstance,theCompanycannotparticipateinthedecision-makingintheproductionandoperatingoftheinvestee.(b)Determinationofinitialinvestmentcost(i)Long-termequityinvestmentsgeneratedinbusinesscombinationsForabusinesscombinationinvolvingenterprisesundercommoncontrol,iftheCompanymakespaymentincash,transfersnon-cashassetsorbearsliabilitiesastheconsiderationforthebusinesscombination,theshareofcarryingamountoftheowners’equityoftheacquireeintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyisrecognisedastheinitialcostofthelong-termequityinvestmentonthecombinationdate.Thedifferencebetweentheinitialinvestmentcostandthecarryingamountofcashpaid,non-cashassetstransferredandliabilitiesassumedshallbeadjustedagainstthecapitalreserve;ifcapitalreserveisnotenoughtobeoffset,undistributedprofitshallbeoffsetinturn.Forabusinesscombinationinvolvingenterprisesundercommoncontrol,iftheCompanyissuesequitysecuritiesastheconsiderationforthebusinesscombination,theshareofcarryingamountoftheowners’equityoftheacquireeintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyisrecognisedastheinitialcostofthelong-termequityinvestmentonthecombinationdate.Thetotalparvalueofthesharesissuedisrecognisedasthesharecapital.Thedifferencebetweentheinitialinvestmentcostandthecarryingamountofthetotalparvalueofthesharesissuedshallbeadjustedagainstthecapitalreserve;ifcapitalreserveisnotenoughtobeoffset,undistributedprofitshallbeoffsetinturn.Forbusinesscombinationnotundercommoncontrol,theassetspaid,liabilitiesincurredorassumedandthefairvalueofequitysecuritiesissuedtoobtainthecontroloftheacquireeat

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theacquisitiondateshallbedeterminedasthecostofthebusinesscombinationandrecognisedastheinitialcostofthelong-termequityinvestment.Theaudit,legal,valuationandadvisoryfees,otherintermediaryfees,andotherrelevantgeneraladministrativecostsincurredforthebusinesscombination,shallberecognisedinprofitorlossasincurred.(ii)Long-termequityinvestmentsacquirednotthroughthebusinesscombination,theinvestmentcostshallbedeterminedbasedonthefollowingrequirements:

Forlong-termequityinvestmentsacquiredbypaymentsincash,theinitialcostistheactuallypaidpurchasecost,includingtheexpenses,taxesandothernecessaryexpendituresdirectlyrelatedtotheacquisitionoflong-termequityinvestments.Forlong-termequityinvestmentsacquiredthroughissuanceofequitysecurities,theinitialcostisthefairvalueoftheissuedequitysecurities.Forthelong-termequityinvestmentsobtainedthroughexchangeofnon-monetaryassets,iftheexchangehascommercialsubstance,andthefairvaluesofassetstradedoutandtradedincanbemeasuredreliably,theinitialcostoflong-termequityinvestmenttradedinwithnon-monetaryassetsaredeterminedbasedonthefairvaluesoftheassetstradedouttogetherwithrelevanttaxes.Differencebetweenfairvalueandbookvalueoftheassetstradedoutisrecordedincurrentprofitorloss.Iftheexchangeofnon-monetaryassetsdoesnotmeettheabovecriterion,thebookvalueoftheassetstradedoutandrelevanttaxesarerecognisedastheinitialinvestmentcost.Forlong-termequityinvestmentacquiredthroughdebtrestructuring,theinitialcostisdeterminedbasedonthefairvalueoftheequityobtainedandthedifferencebetweeninitialinvestmentcostandcarryingamountofdebtsshallberecordedincurrentprofitorloss.(c)SubsequentmeasurementandrecognitionofprofitorlossLong-termequityinvestmenttoanentityoverwhichtheCompanyhasabilityofcontrolshallbeaccountedforatcostmethod.Long-termequityinvestmenttoajointventureoranassociateshallbeaccountedforatequitymethod.(i)CostmethodForLong-termequityinvestmentatcostmethod,costofthelong-termequityinvestmentshallbeadjustedwhenadditionalamountisinvestedorapartofitiswithdrawn.TheCompanyrecognisesitsshareofcashdividendsorprofitswhichhavebeendeclaredtodistributebytheinvesteeascurrentinvestmentincome.(ii)EquitymethodIftheinitialcostoftheinvestmentisinexcessoftheshareofthefairvalueofthenetidentifiableassetsintheinvesteeatthedateofinvestment,thedifferenceshallnotbeadjustedtotheinitialcostoflong-termequityinvestment;iftheinitialcostoftheinvestmentisinshortoftheshareofthefairvalueofthenetidentifiableassetsintheinvesteeatthedateinvestment,thedifferenceshallbeincludedinthecurrentprofitorlossandtheinitialcostofthelong-termequityinvestmentshallbeadjustedaccordingly.

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TheCompanyrecognisestheshareoftheinvestee’snetprofitsorlosses,aswellasitsshareoftheinvestee’sothercomprehensiveincome,asinvestmentincomeorlossesandothercomprehensiveincomerespectively,andadjuststhecarryingamountoftheinvestmentaccordingly.Thecarryingamountoftheinvestmentshallbereducedbytheshareofanyprofitorcashdividendsdeclaredtodistributebytheinvestee.Theinvestor’sshareoftheinvestee’sowners’equitychanges,otherthanthosearisingfromtheinvestee’snetprofitorloss,othercomprehensiveincomeorprofitdistribution,shallberecognisedintheinvestor’sequity,andthecarryingamountofthelong-termequityinvestmentshallbeadjustedaccordingly.TheCompanyrecognisesitsshareoftheinvestee’snetprofitsorlossesaftermakingappropriateadjustmentsofinvestee’snetprofitbasedonthefairvaluesoftheinvestee’sidentifiablenetassetsattheinvestmentdate.IftheaccountingpolicyandaccountingperiodadoptedbytheinvesteeisnotinconsistencywiththeCompany,thefinancialstatementsoftheinvesteeshallbeadjustedaccordingtotheCompany’saccountingpoliciesandaccountingperiod,basedonwhich,investmentincomeorlossandothercomprehensiveincome,etc.,shallbeadjusted.Theunrealizedprofitsorlossesresultingfrominter-companytransactionsbetweenthecompanyanditsassociateorjointventureareeliminatedinproportiontothecompany’sequityinterestintheinvestee,basedonwhichinvestmentincomeorlossesshallberecognised.Anylossesresultingfrominter-companytransactionsbetweentheinvestorandtheinvestee,whichbelongtoassetimpairment,shallberecognisedinfull.WheretheCompanyobtainsthepowerofjointcontrolorsignificantinfluence,butnotcontrol,overtheinvestee,duetoadditionalinvestmentorotherreason,therelevantlong-termequityinvestmentshallbeaccountedforbyusingtheequitymethod,initialcostofwhichshallbethefairvalueoftheoriginalinvestmentplustheadditionalinvestment.Wheretheoriginalinvestmentisclassifiedasotherequityinvestment,differencebetweenitsfairvalueandthecarryingvalue,inadditiontothecumulativechangesinfairvaluepreviouslyrecordedinothercomprehensiveincome,shallberecogisedintoretainedearningsoftheperiodofusingequitymethod.IftheCompanylosesthejointcontrolorsignificantinfluenceoftheinvesteeforsomereasonssuchasdisposalofequityinvestment,theretainedinterestshallbemeasuredatfairvalueandthedifferencebetweenthecarryingamountandthefairvalueatthedateoflossthejointcontrolorsignificantinfluenceshallberecognisedinprofitorloss.WhentheCompanydiscontinuestheuseoftheequitymethod,theCompanyshallaccountforallamountspreviouslyrecognisedinothercomprehensiveincomeunderequitymethodinrelationtothatinvestmentonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilities.(d)ImpairmenttestingandprovisionforimpairmentlossForinvestmentinsubsidiaries,associatesorajointventures,provisionforimpairmentlosspleaserefertoNote3.22.

3.17InvestmentProperties

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(a)ClassificationofinvestmentpropertiesInvestmentpropertiesarepropertiestoearnrentalsorforcapitalappreciationorboth,including:

(i)Landuserightleasedout(ii)Landheldfortransferuponappreciation(iii)Buildingsleasedout(b)ThemeasurementmodelofinvestmentpropertyTheCompanyadoptsthecostmodelforsubsequentmeasurementofinvestmentproperties.ForprovisionforimpairmentpleaserefertoNote3.22.TheCompanycalculatesthedepreciationoramortizationbasedonthenetamountofinvestmentpropertycostlesstheaccumulatedimpairmentandthenetresidualvalueusingstraight-linemethod.Theestimatedusefullifeandannualdepreciationrateswhicharedeterminedaccordingtothecategories,estimatedeconomicusefullivesandestimatednetresidualratesarelistedasfollowings:

Category	Estimatedusefullife(year)	Residualrates(%)	Annualdepreciationrates(%)
Buildingsandconstructions	20-35	5.00	2.71-4.85

3.18FixedAssetsFixedassetsrefertothetangibleassetswithhigherunitpriceheldforthepurposeofproducingcommodities,renderingservices,rentingorbusinessmanagementwithusefullivesexceedingoneyear.(a)RecognitioncriteriaoffixedassetsFixedassetswillonlyberecognisedattheactualcostpaidwhenobtainingasallthefollowingcriteriaaresatisfied:

(i)ItisprobablethattheeconomicbenefitsrelatingtothefixedassetswillflowintotheCompany;(ii)Thecostsofthefixedassetscanbemeasuredreliably.Subsequentexpenditureforfixedassetsshallberecordedincostoffixedassets,ifrecognitioncriteriaoffixedassetsaresatisfied,otherwisetheexpenditureshallberecordedincurrentprofitorlosswhenincurred.(b)DepreciationmethodsoffixedassetsTheCompanybeginstodepreciatethefixedassetfromthenextmonthafteritisavailableforintendeduseusingthestraight-line-method.Theestimatedusefullifeandannualdepreciationrateswhicharedeterminedaccordingtothecategories,estimatedeconomicusefullivesandestimatednetresidualratesoffixedassetsarelistedasfollowings:

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Category	Depreciationmethod	Estimatedusefullife(year)	Residualrates(%)	Annualdepreciationrates(%)
Buildingsandconstructions	straight-line-method	20-35	5.00	2.71-4.85
Machineryequipment	straight-line-method	10	5.00-10.00	9.00-9.50
Electricalequipment	straight-line-method	5	5.00	19.00
Vehicles	straight-line-method	5	5.00	19.00
Otherequipment	straight-line-method	5	5.00	19.00

Forthefixedassetswithimpairmentprovided,theimpairmentprovisionshouldbeexcludedfromthecostwhencalculatingdepreciation.Attheendofreportingperiod,theCompanyshallreviewtheusefullife,estimatednetresidualvalueanddepreciationmethodofthefixedassets.Estimatedusefullifeofthefixedassetsshallbeadjustedifitischangedcomparedtotheoriginalestimation.

3.19ConstructioninProgress(a)ClassificationofconstructioninprogressConstructioninprogressismeasuredonanindividualprojectbasis.(b)RecognitioncriteriaandtimingoftransferfromconstructioninprogresstofixedassetsTheinitialbookvaluesofthefixedassetsarestatedattotalexpendituresincurredbeforetheyarereadyfortheirintendeduse,includingconstructioncosts,originalpriceofmachineryequipment,othernecessaryexpensesincurredtobringtheconstructioninprogresstogetreadyforitsintendeduseandborrowingcostsofthespecificloanfortheconstructionortheproportionofthegeneralloanusedfortheconstructionsincurredbeforetheyarereadyfortheirintendeduse.Theconstructioninprogressshallbetransferredtofixedassetwhentheinstallationorconstructionisreadyfortheintendeduse.Forconstructioninprogressthathasbeenreadyfortheirintendedusebutrelevantbudgetsforthecompletionofprojectshavenotbeencompleted,theestimatedvaluesofprojectbudgets,prices,oractualcostsshouldbeincludedinthecostsofrelevantfixedassets,anddepreciationshouldbeprovidedaccordingtorelevantpoliciesoftheCompanywhenthefixedassetsarereadyforintendeduse.Afterthecompletionofbudgetsneededforthecompletionofprojects,theestimatedvaluesshouldbesubstitutedbyactualcosts,butdepreciationalreadyprovidedisnotadjusted.

3.20BorrowingCosts

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(a)RecognitioncriteriaandperiodforcapitalizationofborrowingcostsTheCompanyshallcapitalizetheborrowingcoststhataredirectlyattributabletotheacquisition,constructionorproductionofqualifyingassetswhenmeetthefollowingconditions:

(i)Expendituresfortheassetarebeingincurred;(ii)Borrowingcostsarebeingincurred,and;(iii)Acquisition,constructionorproductionactivitiesthatarenecessarytopreparetheassetsfortheirintendeduseorsaleareinprogress.Otherborrowingcost,discountsorpremiumsonborrowingsandexchangedifferencesonforeigncurrencyborrowingsshallberecognizedintocurrentprofitorlosswhenincurred.Capitalizationofborrowingcostsissuspendedduringperiodsinwhichtheacquisition,constructionorproductionofaqualifyingassetisinterruptedabnormallyandtheinterruptionisforacontinuousperiodofmorethan3months.Capitalizationofsuchborrowingcostsceaseswhenthequalifyingassetsbeingacquired,constructedorproducedbecomereadyfortheirintendeduseorsale.Theexpenditureincurredsubsequentlyshallberecognisedasexpenseswhenincurred.(b)CapitalizationrateandmeasurementofcapitalizedamountsofborrowingcostsWhenfundsareborrowedspecificallyforpurchase,constructionormanufacturingofassetseligibleforcapitalization,theCompanyshalldeterminetheamountofborrowingcostseligibleforcapitalisationastheactualborrowingcostsincurredonthatborrowingduringtheperiodlessanyinterestincomeonbankdepositorinvestmentincomeonthetemporaryinvestmentofthoseborrowings.Wherefundsallocatedforpurchase,constructionormanufacturingofassetseligibleforcapitalizationarepartofageneralborrowing,theeligibleamountsaredeterminedbytheweighted-averageofthecumulativecapitalexpendituresinexcessofthespecificborrowingmultipliedbythegeneralborrowingcapitalizationrate.Thecapitalisationratewillbetheweightedaverageoftheborrowingcostsapplicabletothegeneralborrowing.

3.21IntangibleAssets(a)MeasurementmethodofintangibleassetsIntangibleassetsarerecognisedatactualcostatacquisition.(b)Theusefullifeandamortisationofintangibleassets(i)Theestimatedusefullivesoftheintangibleassetswithfiniteusefullivesareasfollows:

Category	Estimatedusefullife	Basis
Landuseright	50years	Legallife

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Category	Estimatedusefullife	Basis
Software	5years	TheservicelifeisdeterminedbyreferencetotheperiodthatcanbringeconomicbenefitstotheCompany
Righttousethetrademark	5-10years	TheservicelifeisdeterminedbyreferencetotheperiodthatcanbringeconomicbenefitstotheCompany

Forintangibleassetswithfiniteusefullife,theestimatedusefullifeandamortisationmethodarereviewedannuallyattheendofeachreportingperiodandadjustedwhennecessary.Nochangehasincurredincurrentyearintheestimatedusefullifeandamortisationmethoduponreview.(ii)AssetsofwhichtheperiodtobringeconomicbenefitstotheCompanyareunforeseeableareregardedasintangibleassetswithindefiniteusefullives.TheCompanyreassessestheusefullivesofthoseassetsateveryyearend.Iftheusefullivesofthoseassetsarestillindefinite,impairmenttestshouldbeperformedonthoseassetsatthebalancesheetdate.(iii)AmortisationoftheintangibleassetsForintangibleassetswithfiniteusefullives,theirusefullivesshouldbedeterminedupontheiracquisitionandsystematicallyamortisedonastraight-linebasis[unitsofproductionmethod]overtheusefullife.Theamortisationamountshallberecognisedintocurrentprofitorlossaccordingtothebeneficialitems.Theamounttobeamortisediscostdeductingresidualvalue.Forintangibleassetswhichhasimpaired,thecumulativeimpairmentprovisionshallbedeductedaswell.Theresidualvalueofanintangibleassetwithafiniteusefullifeshallbeassumedtobezerounless:thereisacommitmentbyathirdpartytopurchasetheassetattheendofitsusefullife;orthereisanactivemarketfortheassetandresidualvaluecanbedeterminedbyreferencetothatmarket;anditisprobablethatsuchamarketwillexistattheendoftheasset’susefullife.Intangibleassetswithindefiniteusefullivesshallnotbeamortised.TheCompanyreassessestheusefullivesofthoseassetsateveryyearend.Ifthereisevidencetoindicatethattheusefullivesofthoseassetsbecomefinite,theusefullivesshallbeestimatedandtheintangibleassetsshallbeamortisedsystematicallyandreasonablywithintheestimatedusefullives.(c)ScopeofResearchandDevelopmentExpendituresTheCompanyclassifiestheexpensesdirectlyrelatedtoresearchanddevelopmentactivitiesasresearchanddevelopmentexpenditures,includingremunerationofresearchanddevelopmentstaff,directmaterial,depreciationcostandlong-termamortisedexpense,designfee,equipmentcommissioningfee,intangibleassetsamortisationcost,outsourcingresearchanddevelopmentcost,andotherexpenses,etc.(d)Criteriaofclassifyingexpendituresoninternalresearchanddevelopmentprojects

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intoresearchphaseanddevelopmentphasePreparationactivitiesrelatedtomaterialsandotherrelevantaspectsundertakenbytheCompanyforthepurposeoffurtherdevelopmentshallbetreatedasresearchphase.Expendituresincurredduringtheresearchphaseofinternalresearchanddevelopmentprojectsshallberecognisedinprofitorlosswhenincurred.DevelopmentactivitiesaftertheresearchphaseoftheCompanyshallbetreatedasdevelopmentphase.(e)CriteriaforcapitalizationofqualifyingexpendituresduringthedevelopmentphaseExpendituresarisingfromdevelopmentphaseoninternalresearchanddevelopmentprojectsshallberecognisedasintangibleassetsonlyifallofthefollowingconditionshavebeenmet:

(i)Technicalfeasibilityofcompletingtheintangibleassetssothattheywillbeavailableforuseorsale;(ii)Itsintentiontocompletetheintangibleassetanduseorsellit;(iii)Themethodthattheintangibleassetsgenerateeconomicbenefits,includingtheCompanycandemonstratetheexistenceofamarketfortheoutputoftheintangibleassetsortheintangibleassetsthemselvesor,ifitistobeusedinternally,theusefulnessoftheintangibleassets;(iv)Theavailabilityofadequatetechnical,financialandotherresourcestocompletethedevelopmentandtouseorselltheintangibleasset;and(v)Itsabilitytomeasurereliablytheexpenditureattributabletotheintangibleasset.

3.22ImpairmentofLong-TermAssetsImpairmentlossoflong-termequityinvestmentinsubsidiaries,associatesandjointventures,investmentpropertiessubsequentlymeasuredatcost,fixedassets,constructionsinprogress,intangibleassets,andrightofuseassets,shallbedeterminedaccordingtofollowingmethod:

TheCompanyshallassessattheendofeachreportingperiodwhetherthereisanyindicationthatanassetmaybeimpaired.Ifanysuchindicationexists,theCompanyshallestimatetherecoverableamountoftheassetandtestforimpairment.Irrespectiveofwhetherthereisanyindicationofimpairment,theCompanyshalltestforimpairmentofgoodwillacquiredinabusinesscombination,intangibleassetswithanindefiniteusefullifeorintangibleassetsnotyetavailableforuseannually.Therecoverableamountsofthelong-termassetsarethehigheroftheirfairvalueslesscoststodisposeandthepresentvaluesoftheestimatedfuturecashflowsofthelong-termassets.TheCompanyestimatetherecoverableamountsonanindividualbasis.Ifitisdifficulttoestimatetherecoverableamountoftheindividualasset,theCompanyestimatestherecoverableamountofthegroupsofassetsthattheindividualassetbelongsto.Identificationofagroupofassetisbasedonwhetherthecashinflowsfromitarelargelyindependentofthecashinflowsfromotherassetsorgroupsofassets.

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If,andonlyif,therecoverableamountofanassetoragroupofassetsislessthanitscarryingamount,thecarryingamountoftheassetshallbereducedtoitsrecoverableamountandtheprovisionforimpairmentlossshallberecognisedaccordingly.Whentestforimpairment,ifthereisanindicationthatrelevantgroupofassetsorcombinationofassetgroupsmaybeimpaired,impairmenttestingforgroupofassetsorcombinationofassetgroupsexcludinggoodwillshallbeconductedfirst,andtherecoverableamountshallbethencalculatedandtheimpairmentlossshallberecognisedaccordingly.Thenthegroupofassetsorcombinationofassetgroupsincludinggoodwillshallbetestedforimpairment,bycomparingthecarryingamountwithitsrecoverableamount.Iftherecoverableamountislessthanthecarryingamount,theCompanyshallrecognisetheimpairmentloss.Thementionedimpairmentlosswillnotbereversedinsubsequentaccountingperiodonceithadbeenrecognised.

3.23Long-termDeferredExpensesLong-termdeferredexpensesarevariousexpensesalreadyincurred,whichshallbeamortisedovercurrentandsubsequentperiodswiththeamortisationperiodexceedingoneyear.Long-termdeferredexpensesareevenlyamortisedoverthebeneficialperiodandtheamortisedperiodforeachexpenseareasfollowing:

Item	Amortisationperiod
Counterfabricationexpenses	2-3years
Decorationexpenses	3-5years
Others	2-3years

3.24EmployeeBenefitsEmployeebenefitsrefertoallformsofconsiderationorcompensationgivenbytheCompanyinexchangeforservicerenderedbyemployeesorfortheterminationofemploymentrelationship.Employeebenefitsincludeshort-termemployeebenefits,post-employmentbenefits,terminationbenefitsandotherlong-termemployeebenefits.Benefitsprovidedtoanemployee'sspouse,children,dependents,familymembersofdecreasedemployees,orotherbeneficiariesarealsoemployeebenefits.Accordingtoliquidity,employeebenefitsarepresentedinthestatementoffinancialpositionas“Employeebenefitspayable”and“Long-termemployeebenefitspayable”.(a)Short-termemployeebenefits(i)Employeebasicsalary(salary,bonus,allowance,subsidy)TheCompanyrecognises,intheaccountingperiodinwhichanemployeeprovidesservice,actuallyoccurredshort-termemployeebenefitsasaliability,withacorrespondingchargetocurrentprofitexceptforthoserecognisedascapitalexpenditurebasedontherequirementof

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accountingstandards.(ii)EmployeewelfareTheCompanyshallrecognisetheemployeewelfarebasedonactualamountwhenincurredintocurrentprofitorlossorrelatedcapitalexpenditure.Employeewelfareshallbemeasuredatfairvalueasitisanon-monetarybenefits.(iii)Socialinsurancesuchasmedicalinsurance,workinjuryinsuranceandmaternityinsurance,housingfunds,laborunionfundandemployeeeducationfundPaymentsmadebytheCompanyofsocialinsuranceforemployees,suchasmedicalinsurance,workinjuryinsuranceandmaternityinsurance,paymentsofhousingfunds,andlaborunionfundandemployeeeducationfundaccruedinaccordancewithrelevantrequirements,intheaccountingperiodinwhichemployeesprovideservices,iscalculatedaccordingtorequiredaccrualbasesandaccrualratioindeterminingtheamountofemployeebenefitsandtherelatedliabilities,whichshallberecognisedincurrentprofitorlossorthecostofrelevantasset.(iv)Short-termpaidabsencesThecompanyshallrecognisetherelatedemployeebenefitsarisingfromaccumulatingpaidabsenceswhentheemployeesrenderservicethatincreasestheirentitlementtofuturepaidabsences.Theadditionalpayableamountsshallbemeasuredattheexpectedadditionalpaymentsasaresultoftheunusedentitlementthathasaccumulated.TheCompanyshallrecogniserelevantemployeebenefitofnon-accumulatingpaidabsenceswhentheabsencesactuallyoccurred.(v)Short-termprofit-sharingplanTheCompanyshallrecognisetherelatedemployeebenefitspayableunderaprofit-sharingplanwhenallofthefollowingconditionsaresatisfied:

?TheCompanyhasapresentlegalorconstructiveobligationtomakesuchpaymentsasaresultofpastevents;and?Areliableestimateoftheamountsofemployeebenefitsobligationarisingfromtheprofit-sharingplancanbemade.(b)Post-employmentbenefits(i)DefinedcontributionplansTheCompanyshallrecognise,intheaccountingperiodinwhichanemployeeprovidesservice,thecontributionpayabletoadefinedcontributionplanasaliability,withacorrespondingchargetothecurrentprofitorlossorthecostofarelevantasset.Whencontributionstoadefinedcontributionplanarenotexpectedtobesettledwhollybeforetwelvemonthsaftertheendoftheannualreportingperiodinwhichtheemployeesrendertherelatedservice,theyshallbediscountedusingrelevantdiscountrate(marketyieldsattheendofthereportingperiodonhighqualitycorporatebondsinactivemarketorgovernmentbonds

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withthecurrencyandtermwhichshallbeconsistentwiththecurrencyandestimatedtermofthedefinedcontributionobligations)tomeasureemployeebenefitspayable.(ii)DefinedbenefitplanThepresentvalueofdefinedbenefitobligationandcurrentservicecostsBasedontheexpectedaccumulativewelfareunitmethod,theCompanyshallmakeestimatesaboutdemographicvariablesandfinancialvariablesinadoptingtheunbiasedandconsistentactuarialassumptionsandmeasuredefinedbenefitobligation,anddeterminetheobligationperiod.TheCompanyshalldiscounttheobligationarisingfromdefinedbenefitplanusingrelevantdiscountrate(marketyieldsattheendofthereportingperiodonhighqualitycorporatebondsinactivemarketorgovernmentbondswiththecurrencyandtermwhichshallbeconsistentwiththecurrencyandestimatedtermofthedefinedbenefitobligations)inordertodeterminethepresentvalueofthedefinedbenefitobligationandthecurrentservicecost.ThenetdefinedbenefitliabilityorassetThenetdefinedbenefitliability(asset)isthedeficitorsurplusrecognisedasthepresentvalueofthedefinedbenefitobligationlessthefairvalueofplanassets(ifany).WhentheCompanyhasasurplusinadefinedbenefitplan,itshallmeasurethenetdefinedbenefitassetatthelowerofthesurplusinthedefinedbenefitplanandtheassetceiling.TheamountrecognisedinthecostofassetorcurrentprofitorlossServicecostcomprisescurrentservicecost,pastservicecostandanygainorlossonsettlement.Otherservicecostshallberecognisedinprofitorlossunlessaccountingstandardsrequireorallowtheinclusionofcurrentservicecostwithinthecostofassets.Netinterestonthenetdefinedbenefitliability(asset)comprisinginterestincomeonplanassets,interestcostonthedefinedbenefitobligationandinterestontheeffectoftheassetceiling,shallbeincludedinprofitorloss.TheamountrecognisedinothercomprehensiveincomeChangesinthenetliabilityorassetofthedefinedbenefitplanresultingfromtheremeasurementsincluding:

?Actuarialgainsandlosses,thechangesinthepresentvalueofthedefinedbenefitobligationresultingfromexperienceadjustmentsortheeffectsofchangesinactuarialassumptions;?Returnonplanassets,excludingamountsincludedinnetinterestonthenetdefinedbenefitliabilityorasset;?Anychangeintheeffectoftheassetceiling,excludingamountsincludedinnetinterestonthenetdefinedbenefitliability(asset).Remeasurementsofthenetdefinedbenefitliability(asset)recognisedinothercomprehensiveincomeshallnotbereclassifiedtoprofitorlossinasubsequentperiod.However,theCompanymaytransferthoseamountsrecognisedinothercomprehensiveincomewithin

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equity.(c)TerminationbenefitsTheCompanyprovidingterminationbenefitstoemployeesshallrecogniseanemployeebenefitsliabilityforterminationbenefits,withacorrespondingchargetotheprofitorlossofthereportingperiod,attheearlierofthefollowingdates:

(i)WhentheCompanycannotunilaterallywithdrawtheofferofterminationbenefitsbecauseofanemploymentterminationplanoracurtailmentproposal.(ii)WhentheCompanyrecognisescostsorexpensesrelatedtoarestructuringthatinvolvesthepaymentofterminationbenefits.Iftheterminationbenefitsarenotexpectedtobesettledwhollybeforetwelvemonthsaftertheendoftheannualreportingperiod,theCompanyshalldiscounttheterminationbenefitsusingrelevantdiscountrate(marketyieldsattheendofthereportingperiodonhighqualitycorporatebondsinactivemarketorgovernmentbondswiththecurrencyandtermwhichshallbeconsistentwiththecurrencyandestimatedtermofthedefinedbenefitobligations)tomeasuretheemployeebenefits.(d)Otherlong-termemployeebenefits(i)MeettheconditionsofthedefinedcontributionplanWhenotherlong-termemployeebenefitsprovidedbytheCompanytotheemployeessatisfiestheconditionsforclassifyingasadefinedcontributionplan,allthosebenefitspayableshallbeaccountedforasemployeebenefitspayableattheirdiscountedvalue.(ii)MeettheconditionsofthedefinedbenefitplanAttheendofthereportingperiod,theCompanyrecognisedthecostofemployeebenefitfromotherlong-termemployeebenefitsasthefollowingcomponents:

?Servicecosts;?Netinterestcostfornetliabilityorassetofotherlong-termemployeebenefits?Changesresultingfromtheremeasurementsofthenetliabilityorassetofotherlong-termemployeebenefitsInordertosimplifytheaccountingtreatment,thenetamountofaboveitemsshallberecognisedinprofitorlossorrelevantcostofassets.

3.25EstimatedLiabilities(a)RecognitioncriteriaofestimatedliabilitiesTheCompanyrecognisestheestimatedliabilitieswhenobligationsrelatedtocontingenciessatisfyallthefollowingconditions:

(i)ThatobligationisacurrentobligationoftheCompany;(ii)ItislikelytocauseanyeconomicbenefittoflowoutoftheCompanyasaresultof

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performanceoftheobligation;and(iii)Theamountoftheobligationcanbemeasuredreliably.(b)MeasurementmethodofestimatedliabilitiesTheestimatedliabilitiesoftheCompanyareinitiallymeasuredatthebestestimateofexpensesrequiredfortheperformanceofrelevantpresentobligations.TheCompany,whendeterminingthebestestimate,hashadacomprehensiveconsiderationofriskswithrespecttocontingencies,uncertaintiesandthetimevalueofmoney.Thecarryingamountoftheestimatedliabilitiesshallbereviewedattheendofeveryreportingperiod.Ifconclusiveevidencesindicatethatthecarryingamountfailstobethebestestimateoftheestimatedliabilities,thecarryingamountshallbeadjustedbasedontheupdatedbestestimate.

3.26Share-basedPayments(a)Classificationofshare-basedpaymentsShare-basedpaymentsoftheCompanyincludeequity-settledshare-basedpaymentsandcash-settledshare-basedpayments.(b)Determiningfairvalueofequityinstruments(i)Thefairvalueofsharesgrantedtotheemployeescanbedeterminedbyreferencetothequotationsintheactivemarket,adjustedinaccordancewiththetermsandconditionsgranted(excludingvestingconditionsotherthanmarketconditions).(ii)Forshareoptiongrantedtotheemployees,itisusuallydifficulttoobtainitsmarketprice.Iftheshareoptionwithsimilartermsandconditionsisnotavailable,theCompanyestimatesthefairvalueofthoseoptionsusinganapplicableoptionpricingmodel.(c)BasisofbestestimateofequityinstrumentsexpectedtovestEverybalancesheetdateduringthevestingperiod,theCompanymakesbestestimateaccordingtothemostupdatednumberofemployeesthatareeligibletoexercisetheiroptionsandrevisesthenumberofequityinstrumentsexpectedtovestinordertomakethebestestimateofequityinstrumentsexpectedtovest.(d)Accountingforimplementationofshare-basedpaymentprogramsCash-settledshare-basedpayment(i)Forcash-settledshare-basedpaymentvestedimmediatelyaftergranting,theCompanyshallrecogniserelevantcostsorexpensesatthefairvalueoftheliabilityborneatgrantdateandacorrespondingincreaseinliability.Untiltheliabilityissettled,theCompanyshallremeasurethefairvalueoftheliabilityattheendofeachreportingperiodandatthedateofsettlement,withanychangesinfairvaluerecognisedinprofitorloss.(ii)Iftheshareinstrumentdonotvestuntilservicesduringthevestingperiodarecompletedorperformanceconditionsaresatisfiedduringthevestingperiod,attheendofeachreportingperiodduringthevestingperiod,theCompanyshallrecogniserelevantcostsorexpensesandthecorrespondingincreaseinliabilityforservicesreceivedinthereportingperiodatthefair

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valueoftheliabilityborne,basedonthebestavailableestimateofthenumberexpectedtovest.Equity-settledshare-basedpayment(i)Forequity-settledshare-basedpaymenttransactioninwhichservicesarereceived,iftheequityinstrumentgrantedvestimmediately,theCompanyshallrecogniserelevantcostsorexpensesatthefairvalueoftheequityinstrumentsatgrantdateandthecorrespondingincreaseincapitalreserve.(ii)Iftheequityinstrumentdonotvestuntilservicesduringthevestingperiodarecompletedorperformanceconditionsaresatisfied,attheendofeachreportingperiodduringthevestingperiod,theCompanyshallrecogniserelevantcostsorexpensesandthecorrespondingincreaseincapitalreserveforservicesreceivedinthereportingperiodatthefairvalueoftheequityinstrumentsatgrantdate,basedonthebestavailableestimateofthenumberofequityinstrumentsexpectedtovest.(e)Accountingformodificationofshare-basedpaymentprogramsWhentheCompanymodifiestermsandconditionsoftheshare-basedpaymentprogram,ifthemodificationincreasesthefairvalueoftheequityinstrumentsgranted,theincreasedamountshouldberecognisedforservicereceivedaccordingly;ifthequantitygrantedoftheequityinstrumentsisincreased,theincreasedamountshouldberecgonisedforservicereceivedaccordinglyaswell.Ifthemodificationreducesthetotalfairvalueoftheshare-basedpaymentarrangement,orthetermsarechangedinsuchawaythatthearrangementisnolongerforthebenefitoftheemployee,theentityisstillrequiredtoaccountfortheservicesreceivedasconsiderationfortheequityinstrumentsgrantedasifthatmodificationhadnotoccurredunlessapartoralloftheequityinstrumentsarecancelled.(f)Accountingforterminationofshare-basedpaymentprogramsIfagrantofequityinstrumentsiscancelledorsettledduringthevestingperiod(otherthanagrantcancelledbyforfeiturewhenthevestingconditionsarenotsatisfied),theCompanyshall:

(i)Accountforthecancellationorsettlementasanaccelerationofvesting,andthereforerecogniseimmediatelytheamountthatotherwisewouldhavebeenrecognisedforservicesreceivedovertheremainderofthevestingperiod.(ii)Accountforanypaymentmadetotheemployeeonthecancellationorsettlementofthegrantastherepurchaseofanequityinterest,andrecognizeanyexcessofthepaymentoverthefairvalueoftheequityinstrumentsmeasuredattherepurchasedateasanexpense.IftheCompanyrepurchasesvestedequityinstruments,thepaymentmadetotheemployeeshallbeaccountedforasadeductionfromequity,andrecognizeanyexcessofthepaymentoverthefairvalueoftheequityinstrumentsmeasuredattherepurchasedateshallberecognisedincurrentprofitorloss.

3.27Revenue(a)GeneralPrinciple

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RevenueisdefinedasthegrossinflowofeconomicbenefitsarisinginthecourseoftheordinaryactivitiesoftheCompanywhenthoseinflowsresultintheincreasesinshareholders’equity,otherthanincreasesrelatingtocontributionsfromshareholders.TheCompanyshallrecogniserevenuewhenitsatisfiesaperformanceobligationinthecontractasthecustomerobtainscontrolofagoodorservice.Controlofagoodorservicereferstotheabilitytodirecttheuseof,andobtainsubstantiallyalloftheremainingeconomicbenefitsfrom,thegoodorservice.Whenthecontracthastwoormoreobligationperformances,theCompanyshallallocatethetransactionpricetoeachperformanceobligationinproportiontoarelativestand-alonesellingpriceatcontractinceptionofthepromisedgoodorserviceunderlyingeachperformanceobligationinthecontractandrecognizerevenuebasedonthetransactionpriceallocatedtoeachperformanceobligation.ThetransactionpriceistheamountofconsiderationtowhichtheCompanyexpectstobeentitledinexchangefortransferringpromisedgoodsorservicestoacustomer,excludingamountscollectedonbehalfofthirdparties.Whendeterminingthetransactionpriceofthecontract,ifthecontractincludesavariableconsideration,theCompanyshalldeterminethebestestimateofthevariableconsiderationbasedontheexpectedvalueorthemostlikelyamountandincludeinthetransactionpriceonlytotheextentthatitishighlyprobablethatasignificantreversalintheamountofcumulativerevenuerecognisedwillnotoccurwhentheuncertaintyassociatedwiththevariableconsiderationissubsequentlyresolved.Ifthecontractcontainsasignificantfinancingcomponent,theCompanyshalldeterminethetransactionpriceatanamountthatreflectsthepricethatacustomerwouldhavepaidforthepromisedgoodsorservicesifthecustomerhadpaidcashforthosegoodsorserviceswhen(oras)theytransfertothecustomer.Thedifferencebetweenthetransactionpriceandthepromisedconsiderationshallbeamortisedusingtheeffectiveinterestmethodwithinthecontractperiod.TheCompanyneednotconsidertheeffectsofasignificantfinancingcomponentiftheperiodbetweenwhentheCompanytransferscontrolofagoodorservicetoacustomerandwhenthecustomerpaysforthatgoodorservicewillbeoneyearorless.TheCompanysatisfiesaperformanceobligationovertime,ifoneofthefollowingcriteriaismet;otherwiseaperformanceobligationissatisfiedatapointintime:

(i)thecustomersimultaneouslyreceivesandconsumesthebenefitsprovidedbytheCompany’sperformanceastheCompanyperforms;(ii)theCompany’sperformancecreatesorenhancesanasset(forexample,workinprogress)thatthecustomercontrolsastheassetiscreatedorenhanced;(iii)theCompany’sperformancedoesnotcreateanassetwithanalternativeusetotheCompanyandtheCompanyhasanenforceablerighttopaymentforperformancecompletedtodate.Foreachperformanceobligationsatisfiedovertime,theCompanyshallrecogniserevenueovertimebymeasuringtheprogresstowardscompletesatisfactionofthatperformance

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obligation,unlessthoseprogresscannotbereasonablymeasured.TheCompanymeasurestheprogressofaperformanceobligationfortheservicerenderedusinginputmethods(oroutputmethods).Insomecircumstances,theCompanycannotbeabletoreasonablymeasuretheprogressofaperformanceobligation,buttheCompanyexpectstorecoverthecostsincurredinsatisfyingtheperformanceobligation.Inthosecircumstances,theCompanyshallrecogniserevenueonlytotheextentofthecostsincurreduntilsuchtimethatitcanreasonablymeasuretheprogressoftheperformanceobligation.TheCompanyshallrecogniserevenueatthepointinwhichacustomerobtainscontrolofapromisedgoodorserviceifaperformanceobligationissatisfiedatapointintime.Todeterminethepointintimeatwhichacustomerobtainscontrolofapromisedgoodorservice,theCompanyshallconsiderindicatorsofthetransferofcontrol,whichinclude,butarenotlimitedto,thefollowings:

(i)TheCompanyhasapresentrighttopaymentforthegoodorservice–acustomerispresentlyobligedtopayforthegoodorservice;(ii)TheCompanyhastransferredlegaltitleofanassettoacustomer-thecustomerhaslegaltitletotheasset;(iii)TheCompanyhastransferredphysicalpossessionofanassettoacustomer-thecustomerhasphysicalpossessionoftheasset;(iv)TheCompanyhastransferredthesignificantrisksandrewardsofownershipoftheassettoacustomer-thecustomerhasthesignificantrisksandrewardsofownershipoftheasset;(v)Thecustomerhasacceptedtheasset.SalewitharightofreturnForsaleswitharightofreturn,whenthecustomerobtainsthecontrolofaproduct,theCompanyshallrecogniserevenueforthetransferredproductsintheamountofconsiderationtowhichtheCompanyexpectstobeentitledandarefundliabilityattheamountsreceivableforwhichtheCompanydoesnotexpecttobeentitled;meanwhile,anassetshallberecognisedasreceivablesonthecostofreturnmeasuredattheformercarryingamountoftheproductexpectedtobereturnedlessanyexpectedcoststorecoverthoseproducts(includingpotentialdecreasesinthevaluetotheentityofreturnedproducts),andthenetamountoftheformercarryingamountoftheproductwhentransferredtothecustomerlessabovementionedcostshallberecordedintothecostofsales.Attheendofeachreportingperiod,theCompanyshallre-assesstheexpectationsaboutthesalesreturnandremeasureabovementionedassetsandliabilities.WarrantiesInaccordancewiththecontract,thelaworotherrequirements,theCompanyprovidesawarrantyinconnectionwiththesaleofaproductorconstructionofaproject.Forwarrantieswhichprovideacustomerwithassurancethattherelatedproductwillfunctionasthepartiesintendedbecauseitcomplieswithagreed-uponspecifications,theCompanyshalltreatitinaccordancewith"AccountingStandardsforBusinessEnterpriseNo.13-Contingencies".Ifa

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warranty,orapartofawarranty,providesacustomerwithaserviceinadditiontotheassurancethattheproductcomplieswithagreed-uponspecifications,theCompanyshalltreatitasaperformanceobligation,andallocatethetransactionpricetothewarrantybasedontherelativeproportiontothestand-alonesellingpriceoftheproductandtheservice,andrecogniserevenuewhenthecustomerobtainsthecontroloftheservice.Inassessingwhetherawarrantyprovidesacustomerwithaserviceinadditiontotheassurancethattheproductcomplieswithagreed-uponspecifications,theCompanyshallconsiderfactorssuchas:

whetherthewarrantyisrequiredbylaw;thelengthofthewarrantycoverageperiodandthenatureofthetasksthattheCompanypromisestoperform.PrincipalversusagentconsiderationsTheCompanydetermineswhetheritisaprincipaloranagentofthetransactiononthebasisofwhetherithascontroloverthegoodsorservicesbeforetheyaretransferredtocustomers.IftheCompanyobtainsthecontrolofthespecifiedgoodsorservicesfromanotherpartyandthentransfersthegoodsorservicestothecustomer,theCompanyisthereforeaprincipal,andrecognisesrevenueinthegrossamountofconsiderationtowhichitexpectstobeentitledinexchangeforthespecifiedgoodsorservicestransferred.Otherwise,theCompanyisanagent,andshallrecogniserevenueintheamountofanyfeeorcommissiontowhichitexpectstobeentitledinexchangeforarrangingforthespecifiedgoodsorservicestobeprovidedbyanotherparty.ThefeeorcommissionmightbethenetamountofreceivedorreceivableconsiderationthattheCompanyretainsafterpayingtheotherpartytheconsiderationreceivedinexchangeforthegoodsorservicestobeprovidedbythatpartyordeterminedbasedonthespecifiedcommissionamountorproportion.ConsiderationpayabletoacustomerTheCompanyshallaccountforconsiderationpayabletoacustomerasareductionofthetransactionpriceunlessthepaymenttothecustomerisinexchangeforadistinctgoodorservicethatthecustomertransferstotheCompany.Thereductionofrevenueshallberecognisedwhen(oras)thelaterofeitherofthefollowingeventsoccurs:theCompanyrecognisesrevenueforthetransferoftherelatedgoodsorservicestothecustomer;andtheCompanypaysorpromisestopaytheconsideration.Customers’unexercisedrightsUponreceiptofaprepaymentforagoodorservicefromacustomer,theCompanyshallrecogniseacontractliabilityintheamountoftheprepaymentandrecogniserevenuewhenitsatisfiesitsperformanceobligation.IftheprepaymenttotheCompanyisnon-refundableandthecustomermaynotexercisepartorallofitscontractualrights,andtheCompanyexpectstobeentitledtoabreakageamountrelatedtothoseunexercisedrightsofthecustomer,theCompanyshallrecognisetheexpectedbreakageamountasrevenueinproportiontothepatternofrightsexercisedbythecustomer;otherwise,theCompanyshallrecognisetheremainingbalanceofabovementionedliabilityasrevenuewhenthelikelihoodofthecustomerexercisingitsremainingrightsbecomesremote.Contractmodifications

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WhentheconstructioncontractmodificationsexistbetweentheCompanyandthecustomer:

(i)TheCompanyshallaccountforacontractmodificationasaseparatecontractifthemodificationresultsintheadditionofpromisedconstructionservicesthataredistinctandincreaseofthepriceofthecontract,andthepriceofthecontractincreasesbyanamountofconsiderationthatreflectstheCompany’sstand-alonesellingpricesoftheadditionalpromisedconstructionservices;(ii)Ifthecontractmodificationisnotaccountedforasaseparatecontractinaccordancewithabovementionedcircumstance,andtheremainingconstructionservicesaredistinctfromtheconstructionservicestransferredonorbeforethedateofthecontractmodification,theCompanyshallaccountforthecontractmodificationasifitwereaterminationoftheexistingcontractandthecreationofanewcontractwiththecombinationoftheremainingperformanceobligationsoftheexistingcontractandthecontractmodification.(iii)Ifthecontractmodificationisnotaccountedforasaseparatecontractinaccordancewithabovementionedcircumstance,andtheremainingconstructionservicescannotbedistinctfromtheconstructionservicestransferredonorbeforethedateofthecontractmodification,theCompanyshallaccountforthecontractmodificationasifitwereapartoftheexistingcontractandtheeffectthatthecontractmodificationhasonthetransactionprice,andontheentity’smeasureofprogresstowardscompletesatisfactionoftheperformanceobligation,isrecognisedasanadjustmenttorevenueatthedateofthecontractmodification.(b)SpecificMethodRevenuerecognitionmethodsoftheCompanyareasfollows:

(i)SalesofwatchSaleofwatchbelongstofulfillingperformanceobligationsatapointoftime.A.OnlinesalesRevenueshallberecognizedatthepointthatthegoodsaredispatched,thecustomerconfirmedreceivedthegoods,andtheplatformhascollectedthepaymentB.OfflinesalesRevenueshallberecognizedatthepointwhenthegoodsaredeliveredandpaymentbycustomeriscollected.Revenueshallberecognizedatthepointwhentheproductsaredeliveredtoandacceptedbythecustomer,thepaymenthasbeenreceivedortherighttocollectpaymentisobtained,andrelatedeconomicbenefitsareprobabletoflowintotheentityC.ConsignmentsaleUnderconsignmentsalesarrangements,revenueisrecognizeduponreceivingthesaleslistfromtheconsignee,confirmingthatcontrolofgoodshasbeentransferredtothecustomer.D.Saleofconsignedgoodsfromothers

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Undersalearrangementofconsignedgoodsfromothers,theCompanyrecognizesrevenueusingthenetmethodwhenexternalconsignedproductsaredeliveredtocustomersandcontrolofthegoodshasbeentransferredtothebuyer(ii)PrecisionmanufacturingPrecisionmanufacturingbusinessbelongstofulfillingperformanceobligationsatapointoftime.RevenuefromdomesticsalesshallberecognizedwhenthegoodsaredeliveredandtheeconomicbenefitassociatedwiththegoodsisprobabletoflowintotheCompany.Revenuefromexportshallberecognizedwhenthefollowingcriteriaissatisfied:theCompanydeclaredthegoodatcustom;obtainedbilloflading;therightofcollectingpaymentisobtainedanditsprobablethattheeconomicbenefitassociatedwiththegoodsflowsintotheCompany.(iii)PropertyleasingFortheaccountingtreatmentoftheCompanyasalessor,pleaserefertoNote3.30.

3.28GovernmentGrants(a)RecognitionofgovernmentgrantsAgovernmentgrantshallnotberecgoniseduntilthereisreasonableassurancethat:

(i)TheCompanywillcomplywiththeconditionsattachingtothem;and(ii)Thegrantswillbereceived.(b)MeasurementofgovernmentgrantsMonetarygrantsfromthegovernmentshallbemeasuredatamountreceivedorreceivable,andnon-monetarygrantsfromthegovernmentshallbemeasuredattheirfairvalueoratanominalvalueofRMB1.00whenreliablefairvalueisnotavailable.(c)Accountingforgovernmentgrants(i)GovernmentgrantsrelatedtoassetsGovernmentgrantspertinenttoassetsmeanthegovernmentgrantsthatareobtainedbytheCompanyusedforpurchaseorconstruction,orformingthelong-termassetsbyotherways.Governmentgrantspertinenttoassetsshallberecognisedasdeferredincome,andshouldberecognisedinprofitorlossonasystematicbasisovertheusefullivesoftherelevantassets.Grantsmeasuredattheirnominalvalueshallbedirectlyrecognisedinprofitorlossoftheperiodwhenthegrantsarereceived.Whentherelevantassetsaresold,transferred,writtenoffordamagedbeforetheassetsareterminated,theremainingdeferredincomeshallbetransferredintoprofitorlossoftheperiodofdisposingrelevantassets.(ii)GovernmentgrantsrelatedtoincomeGovernmentgrantsotherthanrelatedtoassetsareclassifiedasgovernmentgrantsrelatedtoincome.Governmentgrantsrelatedtoincomeareaccountedforinaccordancewiththefollowingprinciples:

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Ifthegovernmentgrantsrelatedtoincomeareusedtocompensatetheenterprise’srelevantexpensesorlossesinfutureperiods,suchgovernmentgrantsshallberecognisedasdeferredincomeandincludedintoprofitorlossinthesameperiodastherelevantexpensesorlossesarerecognised;Ifthegovernmentgrantsrelatedtoincomeareusedtocompensatetheenterprise’srelevantexpensesorlossesincurred,suchgovernmentgrantsaredirectlyrecognisedintocurrentprofitorloss.Forgovernmentgrantscomprisedofpartrelatedtoassetsaswellaspartrelatedtoincome,eachpartisaccountedforseparately;ifitisdifficulttoidentifydifferentpart,thegovernmentgrantsareaccountedforasgovernmentgrantsrelatedtoincomeasawhole.Governmentgrantsrelatedtodailyoperationactivitiesarerecognisedinotherincomeinaccordancewiththenatureoftheactivities,andgovernmentgrantsirrelevanttodailyoperationactivitiesarerecognisedinnon-operatingincome.(iii)LoaninterestsubsidyWhenloaninterestsubsidyisallocatedtothebank,andthebankprovidesaloanatlower-marketrateofinteresttotheCompany,theloanisrecognisedattheactualreceivedamount,andtheinterestexpenseiscalculatedbasedontheprincipaloftheloanandthelower-marketrateofinterest.WhenloaninterestsubsidyisdirectlyallocatedtotheCompany,thesubsidyshallberecognisedasoffsettingtherelevantborrowingcost.(iv)RepaymentofthegovernmentgrantsRepaymentofthegovernmentgrantsshallberecordedbyincreasingthecarryingamountoftheassetifthebookvalueoftheassethasbeenwrittendown,orreducingthebalanceofrelevantdeferredincomeifdeferredincomebalanceexists,anyexcesswillberecognisedintocurrentprofitorloss;ordirectlyrecognisedintocurrentprofitorlossforothercircumstances.

3.29DeferredTaxAssetsandDeferredTaxLiabilitiesTemporarydifferencesaredifferencesbetweenthecarryingamountofanassetorliabilityinthestatementoffinancialpositionanditstaxbaseatthebalancesheetdate.TheCompanyrecogniseandmeasuretheeffectoftaxabletemporarydifferencesanddeductibletemporarydifferencesonincometaxasdeferredtaxliabilitiesordeferredtaxassetsusingliabilitymethod.Deferredtaxassetsanddeferredtaxliabilitiesshallnotbediscounted.(a)RecognitionofdeferredtaxassetsDeferredtaxassetsshouldberecognisedfordeductibletemporarydifferences,thecarryforwardofunusedtaxlossesandthecarryforwardofunusedtaxcreditstotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,thecarryforwardofunusedtaxlossesandthecarryforwardofunusedtaxcreditscanbeutilisedatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealised,unlessthedeferredtaxassetarisesfromtheinitialrecognitionofanassetorliability

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inatransactionthat:

(i)Isnotabusinesscombination;and(ii)Atthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit(taxloss)TheCompanyshallrecogniseadeferredtaxassetforalldeductibletemporarydifferencesarisingfrominvestmentsinsubsidiaries,associatesandjointventures,onlytotheextentthat,itisprobablethat:

(i)Thetemporarydifferencewillreverseintheforeseeablefuture;and(ii)Taxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilised.Attheendofeachreportingperiod,ifthereissufficientevidencethatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencecanbeutilized,theCompanyrecognisesapreviouslyunrecogniseddeferredtaxasset.Thecarryingamountofadeferredtaxassetshallbereviewedattheendofeachreportingperiod.TheCompanyshallreducethecarryingamountofadeferredtaxassettotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowthebenefitofpartorallofthatdeferredtaxassettobeutilised.Anysuchreductionshallbereversedtotheextentthatitbecomesprobablethatsufficienttaxableprofitwillbeavailable.(b)RecognitionofdeferredtaxliabilitiesAdeferredtaxliabilityshallberecognisedforalltaxabletemporarydifferencesatthetaxratethatareexpectedtoapplytotheperiodwhentheliabilityissettled.(i)Nodeferredtaxliabilityshallberecognisedfortaxabletemporarydifferencesarisingfrom:

?Theinitialrecognitionofgoodwill;or?Theinitialrecognitionofanassetorliabilityinatransactionwhich:isnotabusinesscombination;andatthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit(taxloss)(ii)Anentityshallrecogniseadeferredtaxliabilityforalltaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,associates,andjointventures,excepttotheextentthatbothofthefollowingconditionsaresatisfied:

?TheCompanyisabletocontrolthetimingofthereversalofthetemporarydifference;and?Itisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.

(c)Recognitionofdeferredtaxliabilitiesorassetsinvolvedinspecialtransactionsorevents(i)DeferredtaxliabilitiesorassetsrelatedtobusinesscombinationForthetaxabletemporarydifferenceordeductibletemporarydifferencearisingfromabusinesscombinationnotundercommoncontrol,adeferredtaxliabilityoradeferredtaxassetshallberecognised,andsimultaneously,goodwillrecognisedinthebusiness

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

combinationshallbeadjustedbasedonrelevantdeferredtaxexpense(income).(ii)ItemsdirectlyrecognisedinequityCurrenttaxanddeferredtaxrelatedtoitemsthatarerecogniseddirectlyinequityshallberecognisedinequity.Suchitemsinclude:othercomprehensiveincomegeneratedfromfairvaluefluctuationofotherdebtinvestments;anadjustmenttotheopeningbalanceofretainedearningsresultingfromeitherachangeinaccountingpolicythatisappliedretrospectivelyorthecorrectionofapriorperiod(significant)error;amountsarisingoninitialrecognitionoftheequitycomponentofacompoundfinancialinstrumentthatcontainsbothliabilityandequitycomponent.(iii)UnusedtaxlossesandunusedtaxcreditsUnusedtaxlossesandunusedtaxcreditsgeneratedfromdailyoperationoftheCompanyitselfDeductiblelossreferstothelosscalculatedandpermittedaccordingtotherequirementoftaxlawthatcanbeoffsetagainsttaxableincomeinfutureperiods.Thecriteriaforrecognisingdeferredtaxassetsarisingfromthecarryforwardofunusedtaxlossesandtaxcreditsarethesameasthecriteriaforrecognisingdeferredtaxassetsarisingfromdeductibletemporarydifferences.TheCompanyrecognisesadeferredtaxassetarisingfromunusedtaxlossesortaxcreditsonlytotheextentthatthereisconvincingotherevidencethatsufficienttaxableprofitwillbeavailableagainstwhichtheunusedtaxlossesorunusedtaxcreditscanbeutilisedbytheCompany.Incometaxesincurrentprofitorlossshallbedeductedaswell.UnusedtaxlossesandunusedtaxcreditsarisingfromabusinesscombinationUnderabusinesscombination,theacquiree’sdeductibletemporarydifferenceswhichdonotsatisfythecriteriaattheacquisitiondateforrecognitionofdeferredtaxassetshallnotberecognised.Within12monthsaftertheacquisitiondate,ifnewinformationregardingthefactsandcircumstancesexistsattheacquisitiondateandtheeconomicbenefitoftheacquiree’sdeductibletemporarydifferencesattheacquisitionisexpectedtoberealised,theCompanyshallrecogniseacquireddeferredtaxbenefitsandreducethecarryingamountofanygoodwillrelatedtothisacquisition.Ifgoodwillisreducedtozero,anyremainingdeferredtaxbenefitsshallberecognisedinprofitorloss.Allotheracquireddeferredtaxbenefitsrealisedshallberecognisedinprofitorloss.(iv)TemporarydifferencegeneratedinconsolidationeliminationWhenpreparingconsolidatedfinancialstatements,iftemporarydifferencebetweencarryingvalueoftheassetsandliabilitiesintheconsolidatedfinancialstatementsandtheirtaxablebasesisgeneratedfromeliminationofinter-companyunrealizedprofitorloss,deferredtaxassetsordeferredtaxliabilitiesshallberecognisedintheconsolidatedfinancialstatements,andincometaxesexpenseincurrentprofitorlossshallbeadjustedaswellexceptfordeferredtaxrelatedtotransactionsoreventsrecogniseddirectlyinequityandbusinesscombination.(v)Share-basedpaymentsettledbyequity

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Iftaxauthoritypermitstaxdeductionthatrelatestoshare-basedpayment,duringtheperiodinwhichtheexpensesarerecognisedaccordingtotheaccountingstandards,theCompanyestimatesthetaxbaseinaccordancewithavailableinformationattheendoftheaccountingperiodandthetemporarydifferencearisingfromit.Deferredtaxshallberecognisedwhencriteriaofrecognitionaresatisfied.Iftheamountofestimatedfuturetaxdeductionexceedstheamountofthecumulativeexpensesrelatedtoshare-basedpaymentrecognisedaccordingtotheaccountingstandards,thetaxeffectoftheexcessamountshallberecogniseddirectlyinequity.(d)BasisfordeferredincometaxassetsanddeferredincometaxliabilitiespresentedonanetbasisTheCompanyshalloffsetdeferredtaxassetsanddeferredtaxliabilitiesif,andonlyif:(i)theCompanyhasalegallyenforceablerighttosetoffcurrenttaxassetsagainstcurrenttaxliabilities;and(ii)thedeferredtaxassetsandthedeferredtaxliabilitiesrelatetoincometaxesleviedbythesametaxationauthorityoneither:

?thesametaxableentity;or?differenttaxableentitieswhichintendeithertosettlecurrenttaxliabilitiesandassetsonanetbasis,ortorealisetheassetsandsettletheliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxliabilitiesorassetsareexpectedtobesettledorrecovered.

3.30Leases(a)IdentifyingaleaseAtinceptionofacontract,theCompanyshallassesswhetherthecontractis,orcontains,alease.Acontractis,orcontains,aleaseifthecontractconveystherighttocontroltheuseofoneormoreidentifiedassetsforaperiodoftimeinexchangeforconsideration.Toassesswhetheracontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftime,theCompanyshallassesswhether,throughouttheperiodofuse,thecustomerhastherighttoobtainsubstantiallyalloftheeconomicbenefitsfromuseoftheidentifiedassetandtodirecttheuseoftheidentifiedasset.(b)IdentifyingaseparateleasecomponentWhenacontractincludesmorethanoneseparateleasecomponents,theCompanyshallseparatecomponentsofthecontractandaccountforeachleasecomponentseparately.Therighttouseanunderlyingassetisaseparateleasecomponentifbothconditionshavebeensatisfied:(i)thelesseecanbenefitfromuseoftheunderlyingasseteitheronitsownortogetherwithotherresourcesthatarereadilyavailabletothelessee;(ii)theunderlyingassetisneitherhighlydependenton,norhighlyinterrelatedwith,theotherunderlyingassetsinthecontract.(c)TheCompanyasalessee

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Atthecommencementdate,theCompanyidentifiestheleasethathasaleasetermof12monthsorlessanddoesnotcontainapurchaseoptionasashort-termlease.Aleasequalifiesasaleaseofalow-valueassetifthenatureoftheassetissuchthat,whennew,theassetistypicallyoflowvalue.IftheCompanysubleasesanasset,orexpectstosubleaseanasset,theheadleasedoesnotqualifyasaleaseofalow-valueasset.Foralltheshort-termleasesorleasesforwhichtheunderlyingassetisoflowvalue,theCompanyshallrecognisetheleasepaymentsassociatedwiththoseleasesascostofrelevantassetorexpensesincurrentprofitorlossonastraight-linebasisovertheleaseterm.Exceptfortheelectionofsimpletreatmentasshort-termleaseorleaseofalow-valueassetasmentionedabove,atthecommencementdate,theCompanyshallrecognisearight-of-useassetandaleaseliability.(i)Right-of-useassetAright-of-useassetisanassetthatrepresentsalessee’srighttouseanunderlyingassetfortheleaseterm.Atthecommencementdate,theCompanyshallinitiallymeasuretheright-of-useassetatcost.Thecostoftheright-of-useassetshallcomprise:

?theamountoftheinitialmeasurementoftheleaseliability；?anyleasepaymentsmadeatorbeforethecommencementdate,lessanyleaseincentivesreceived;?anyinitialdirectcostsincurredbythelessee;and?anestimateofcoststobeincurredbythelesseeindismantlingandremovingtheunderlyingasset,restoringthesiteonwhichitislocatedorrestoringtheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.TheCompanyrecognisesandmeasuresthecostinaccordancewiththerecognitioncriteriaandmeasurementmethodforestimatedliabilities,detailspleaserefertoNotes3.25.Thosecostsincurredtoproduceinventoriesshallbeincludedinthecostofinventories.Theright-of-useassetshallbedepreciatedaccordingtothecategoriesusingstraight‐linemethod.Ifitisreasonablycertainthattheownershipoftheunderlyingassetshallbetransferredtothelesseebytheendoftheleaseterm,thedepreciationrateshallbedeterminedbasedontheclassificationoftheright-of-useassetandestimatedresidualvalueratefromthecommencementdatetotheendoftheusefullifeoftheunderlyingasset.Otherwise,thedepreciationrateshallbedeterminedbasedontheclassificationoftheright-of-useassetfromthecommencementdatetotheearlieroftheendoftheusefullifeoftheright-of-useassetortheendoftheleaseterm.Afterthecommencementdate,theCompanyshallremeasuretheleaseliabilitybasedontherevisedpresentvalueoftheleasepaymentsandadjustthecarryingamountoftheright-of-useassetifthereisachangeinthein-substancefixedpayments,orchangeintheamountsexpectedtobepayableunderaresidualvalueguarantee,orchangeinanindexorarateused

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

todetermineleasepayments,orchangeintheassessmentorexercisingofanoptiontopurchasetheunderlyingasset,oranoptiontoextendorterminatethelease.(d)TheCompanyasalessorAtthecommencementdate,theCompanyshallclassifyaleaseasafinanceleaseifittransferssubstantiallyalltherisksandrewardsincidentaltoownershipofanunderlyingasset,otherwiseitshallbeclassifiedasanoperatinglease.(i)OperatingleasesTheCompanyshallrecogniseleasepaymentsfromoperatingleasesasincomeonastraight-linebasisoverthetermoftherelevantleaseandtheinitialdirectcostsincurredinobtaininganoperatingleaseshallbecapitalisedandrecognisedasanexpenseovertheleasetermonthesamebasisastheleaseincome.TheCompanyshallrecognisethevariableleasepaymentsrelatingtotheoperatingleasebutnotincludedinthemeasurementoftheleasereceivablesintocurrentprofitorlosswhenincurred.(ii)FinanceleasesAtthecommencementdate,theCompanyshallrecognisetheleasereceivablesatanaccountequaltothenetinvestmentinthelease(thesumofthepresentvalueoftheunguaranteedresidualvaluesandtheleasepaymentthatarenotreceivedatthecommencementdatediscountedattheinterestrateimplicitinthelease)andderecognisetheassetrelatingtothefinancelease.TheCompanyshallrecogniseinterestincomeusingtheinterestrateimplicitintheleaseovertheleaseterm.TheCompanyshallrecognisethevariableleasepaymentsrelatingtothefinanceleasebutnotincludedinthemeasurementofthenetinvestmentintheleaseintocurrentprofitorlosswhenincurred.(e)Leasemodifications(i)AleasemodificationaccountedforasaseparateleaseTheCompanyshallaccountforamodificationtoaleaseasaseparatelease,ifboth:

?themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormoreunderlyingassets;and?theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-alonepricefortheincreaseinscope.(ii)AleasemodificationnotaccountedforasaseparateleaseTheCompanyasalesseeAttheeffectivedateoftheleasemodification,theCompanyshallredeterminetheleasetermofthemodifiedleaseandremeasuretheleaseliabilitybydiscountingtherevisedleasepaymentsusingareviseddiscountrate.Thereviseddiscountrateisdeterminedastheinterestrateimplicitintheleasefortheremainderoftheleaseterm,ifthatratecanbereadilydetermined,ortheincrementalborrowingrateattheeffectivedateofthemodification,ifthe

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

interestrateimplicitintheleasecannotbereadilydetermined.TheCompanyshallaccountfortheremeasurementoftheleaseliabilityby:

?decreasingthecarryingamountoftheright-of-useassettoreflectthepartialorfullterminationoftheleaseforleasemodificationsthatdecreasethescopeoftheleaseorshortentheleaseterm.TheCompanyshallrecogniseinprofitorlossanygainorlossrelatingtothepartialorfullterminationofthelease.?Makingacorrespondingadjustmenttothecarryingamountoftheright-of-useassetforallotherleasemodifications.TheCompanyasalessorTheCompanyshallaccountforamodificationtoanoperatingleaseasanewleasefromtheeffectivedateofthemodification,consideringanyprepaidoraccruedleasepaymentsrelatingtotheoriginalleaseaspartoftheleasepaymentsforthenewlease.Foramodificationtoafinanceleasethatisnotaccountedforasaseparatelease,theCompanyshallaccountforthemodificationasfollows:

?iftheleasewouldhavebeenclassifiedasanoperatingleasehadthemodificationbeenineffectattheinceptiondate,theCompanyshallaccountfortheleasemodificationasanewleasefromtheeffectivedateofthemodificationandmeasurethecarryingamountoftheunderlyingassetasthenetinvestmentintheleaseimmediatelybeforetheeffectivedateoftheleasemodification;?iftheleasewouldhavebeenclassifiedasafinanceleasehadthemodificationbeenineffectattheinceptiondate,theCompanyshallaccountfortheleasemodificationaccordingtotherequirementsinthemodificationorrenegotiationofthecontract.(f)SaleandleasebackTheCompanyshalldeterminewhetherthetransferofanassetunderthesaleandleasebacktransactionisasaleofthatassetaccordingtothepoliciesinNote3.27.(i)TheCompanyasaseller(lessee)Ifthetransferoftheassetisnotasale,theCompanyshallcontinuetorecognisethetransferredassetandshallrecogniseafinancialliabilityequaltothetransferproceeds.ItshallaccountforthefinancialliabilityaccordingtoNote3.11.Ifthetransferoftheassetisasale,theCompanyshallmeasuretheright-of-useassetarisingfromtheleasebackattheproportionofthepreviouscarryingamountoftheassetthatrelatestotherightofuseretainedbytheCompany.Accordingly,theCompanyshallrecogniseonlytheamountofanygainorlossthatrelatestotherightstransferredtothebuyer-lessor.(ii)TheCompanyasabuyer(lessor)Ifthetransferoftheassetisnotasale,theCompanyshallnotrecognisethetransferredassetandshallrecogniseafinancialassetequaltothetransferproceeds.ItshallaccountforthefinancialassetaccordingtoNote3.11.Ifthetransferoftheassetisasale,theCompanyshall

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

accountforthepurchaseoftheassetapplyingapplicableAccountingStandardsofBusinessEnterprises,andfortheleaseapplyingthelessoraccountingrequirements.

3.31SafetyProductionCostsAccordingtotherelevantregulations,theCompanyaccruesthesafetyproductioncosts.Thesafetyproductioncostsshallberecognisedinthecostoftherelevantproductsorcurrentprofitorlosswhenmakestheaccrual,andincludedinthe“specialreserve”accountsimultaneously.Whentheaccruedsafetyproductioncostsareusedwithinthescopeoftheregulations,itshallbetreatedasexpenseanddirectlydeductedfromthespecialreserve;ifthefixedassetsarecapitalized,theexpenditureincurredshallbefirstlycollectivelyrecordedin“constructioninprogress”andrecognisedasfixedassetwhenthesafetyprojecthasbeencompletedforitsintendeduse.Atthesametime,thecostthatcapitalizedasthefixedassetsshallbedeductedfromthespecialreserveandtheaccumulateddepreciationwiththesameamountshallberecognised.Thefixedassetsshallnotbedepreciatedinsubsequentreportingperiod.

3.32RepurchaseofCompany’sShare(a)IftheCompanyreducesitsregisteredcapitalthroughrepurchaseoftheCompany’sshareaccordingtotheapprovalrequiredinrelevantlawsandregulations,thesharecapitalshallbereducedattheparvalueofthesharesderegistered,thedifferencebetweentheconsiderationpaidforrepurchase(includingthetransactioncost)andtheparvalueofthesharesshalladjusttheowner’sequity.Anyexcessofthetotalparvalueshalloffsetthecapitalreserve(sharepremium),surplusreserveandretainedearningsinturn.Iftheconsiderationpaidislessthanthetotalparvalue,thedifferenceshallincreasethecapitalreserve(sharepremium).(b)Beforebeingderegisteredortransfered,sharesrepurchasedbytheCompanyshallbetreatedastreasurystockandallexpendituresoftherepurchaseshallberecognisedasthecostoftreasurystock.(c)Anyexcessoftheincomegeneratedfromtransferringthetreasurystockovertheircostshallincreasethecapitalreserve(sharepremium),andanylessshalloffsetthecapitalreserve(sharepremium),surplusreserveandretainedearningsinturn.

3.33RestrictedStockIntheequityincentiveplan,theCompanyshallgrantrestrictedsharestothemotivatedtarget,andthemotivatedobjectfirstsubscribesforthestock.Ifthesubsequentunlockingconditionsspecifiedintheequityincentiveplanarenotmet,theCompanyrepurchasesthestockatthepriceagreedinadvance.Iftherestrictedsharesissuedtoemployeesaresubjecttotheproceduresforcapitalincreasesuchasregistrationinaccordancewithrelevantregulations,atgrantdate,theCompanyshallrecognisethesharecapitalandcapitalreserve(sharepremium)basedonthereceivedsubscriptionfeesfromtheemployees;treasurystocksandotherpayablesshallberecognisedbasedontherepurchaseobligation.

3.34ChangesinSignificantAccountingPoliciesandAccountingEstimates

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

(a)ChangesinaccountingpolicesOn25October2023,theMinistryofFinanceissuedInterpretationofAccountingStandardsforBusinessEnterprisesNo.17(Caikuai[2023]No.21)(hereinafterreferredtoas"InterpretationNo.17")shallbeimplementedasof1January2024.TheCompanyimplementedtheprovisionon1January2024.TherearenotanysignificantimpactsontheCompany’sfinancialstatementsduringthereportingperiodfortheimplementationofInterpretationNo.17.TheCompilationofEnterpriseAccountingStandardsApplicationGuidelines2024,issuedbytheMinistryofFinanceinMarch2024,andInterpretationNo.18ofEnterpriseAccountingStandards,issuedon6December2024,stipulatethatwarranty-relatedexpensesshouldbeincludedinthecostofsales.TherearenotanysignificantimpactsontheCompany’sfinancialstatementsduringthereportingperiodfortheimplementation.(b)SignificantchangesinaccountingestimatesTheCompanyhasnosignificantchangesinaccountingestimatesforthereportingperiod.

4.TAXATION

4.1MajorCategoriesofTaxandTaxRatesApplicabletotheCompany

Categoriesoftax	Basisoftaxassessment	Taxrate
Valueaddedtax(VAT)	Taxablerevenue	Outputtaxiscalculatedatratesof5%,6%,9%,and13%basedonsalesrevenue.Afterdeductinginputtaxasperregulations,thenettaxpayableisdetermined.
Consumptiontax	TaxablePriceandSalesVolumeofHigh-EndWatchSalesRevenue	20%
Urbanmaintenanceandconstructiontax	Turnovertaxpayable	5%,7%
Propertytax	70%or80%oftheoriginalcostofproperty	1.2%,12%

Taxratesofincometaxofdifferentsubsidiariesarestatedasbelow:

NameofTaxpayer	RateofIncomeTax
FIYTAPrecisionTechnologyCo.,Ltd.	25%
ShenzhenHARMONYWorldWatchCenterCo.,Ltd.(i)	25%
FIYTASalesCo.,Ltd.(i)	25%
ShenzhenFIYTAPrecisionTechnologyCo.,Ltd.(ii)	15%
ShenzhenFIYTATechnologyDevelopmentCo.,Ltd.(ii)	15%
HARMONYWorldWatchCenter(Hainan)Co.,Ltd.(v)	20%
ShenzhenXunhangPrecisionTechnologyCo.,Ltd.	25%
EmileChoureitTiming(Shenzhen)Ltd.	25%

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

NameofTaxpayer	RateofIncomeTax
LiaoningHengdaruiCommercial&TradeCo.,Ltd.	25%
Temporal(Shenzhen)Co.,Ltd.	25%
ShenzhenHarmonyE-commerceCo.,Ltd.(v)	20%
FIYTAHongKong(iii)	16.5%
MontresChourietSA(iv)	30%

Notes:

(i)AccordingtotherelevantprovisionsoftheNoticeoftheStateAdministrationofTaxationonIssuingtheInterimMeasuresfortheAdministrationofCollectionofEnterpriseIncomeTaxontheBasisofConsolidationofTrans-regionalBusinessOperations,theheadofficeoftheCompanyanditsbranchesshallbegovernedbytheadministrativemeasuresforenterpriseincometax,namelynamely“centralizedcalculation,level-by-leveladministration,pre-paymentatthelocality,consolidatedsettlementandpayment,andtransfertotreasury”.50%oftheprepaymentshallbeapportionedamongthebranchesand50%shallbeapportionedbytheheadoffice;(ii)thecompaniesenjoythecorporateincometaxratereductionfor“keyhigh-techenterprisessupportedbythestate”;(iii)thecompanyisincorporatedinHongKongandissubjecttoHongKongProfitsTaxatarateof16.50%forthecurrentyear;(iv)thecompanyisincorporatedinSwitzerlandandissubjecttothelocaltaxrate,whichthecomprehensivetaxrateforthecurrentyearis30%;(v)thecompaniesqualifyassmalllow-profitenterprisesandaresubjecttocorporateincometaxatarateof20%.

4.2TaxPreferenceInaccordancewiththeCorporateIncomeTaxLawofthePeople'sRepublicofChina,high-techenterprisesthatarekeyareasofstatesupportaresubjecttoareducedcorporateincometaxrateof15%.Thesubsidiary,ShenzhenFIYTAPrecisionTechnologyCo.,Ltd.,wascertifiedasahigh-techenterprisein2024withacertificatenumberofGR202444200965,validforthreeyears,andissubjecttoacorporateincometaxrateof15%from2024to2026.Thesubsidiary,ShenzhenFIYTATechnologyDevelopmentCo.,Ltd.,wascertifiedasahigh-techenterprisein2022withacertificatenumberofGR202244204678,validforthreeyears,andissubjecttoacorporateincometaxrateof15%from2022to2024.InaccordancewiththerelevantprovisionsoftheAnnouncementoftheMinistryofFinanceandtheStateAdministrationofTaxationonPreferentialIncomeTaxPoliciesforSmallandMicroEnterprisesandIndividualBusinesses(CaiShui[2023]No.6),smalllow-profitenterprisesareallowedtoincludeonly25%oftheirincomeinthetaxableincomebaseandarethensubjecttoa20%corporateincometaxrate.InaccordancewiththeNoticeoftheMinistryofFinanceandtheStateAdministrationof

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

TaxationonExtendingtheLossCarryforwardPeriodforHigh-TechEnterprisesandTechnology-BasedSmallandMedium-SizedEnterprises(CaiShui[2018]No.76),effectivefromJanuary1,2018,anyunutilizedlossesincurredduringthefiveaccountingyearspriortoobtaininghigh-techenterprisestatusmaybecarriedforwardtosubsequentyears.Themaximumcarryforwardperiodhasbeenextendedfromfiveyearstotenyears.InaccordancewiththeAnnouncementoftheMinistryofFinanceandtheStateAdministrationofTaxationonFurtherImprovingthePre-TaxAdditionalDeductionPolicyforR&DExpenses(CaiShui[2023]No.7),forR&Dexpensesactuallyincurredbyenterprisesthatdonotresultinthecreationofanintangibleasset(andarethereforerecordedinthecurrentprofitorloss),anadditional100%deductionmaybeclaimedfortaxpurposes,ontopofthestatutorydeduction,startingfromJanuary1,2023.IftheR&Dactivitiesresultinthecreationofanintangibleasset,beginningJanuary1,2023,200%oftheintangibleasset’scostmaybeamortizedfortaxpurposes.Since2019,HongKonghasimplementedatwo-tieredprofitstaxregime.Underthissystem,thefirstHKD2millionofprofitsistaxedatarateof8.25%,andanyprofitsexceedingthatthresholdcontinuetobetaxedat16.5%.

5.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS

5.1Monetaryfunds

Items	31December2024	31December2023
Cashonhand	76,344.01	178,996.87
Cashinbank	18,205,968.96	35,443,378.12
Othermonetaryfunds	2,055,640.10	1,262,979.96
Fundsinfinancecompany	498,616,224.42	467,743,798.76
Total	518,954,177.49	504,629,153.71
Including：Thetotalamountdepositedoverseas	6,150,258.49	1,202,601.86

Notes:

(i)FundsinfinancecompanyprimarilyrefertoamountsheldatAVICFinanceCo.,Ltd..(ii)Asof31December2024,theCompanyhasnopledgedorfrozenfunds,noranyamountswithpotentialrecoveryrisk.

5.2NotesReceivable(a)Notesreceivablebycategory

Items	31December2024			31December2023
Items	BookBalance	Provisionforbaddebt	Carryingamount	BookBalance	Provisionforbaddebt	Carryingamount
Bankacceptance	9,184,912.30		9,184,912.30	10,363,449.00		10,363,449.00

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Items	31December2024			31December2023
Items	BookBalance	Provisionforbaddebt	Carryingamount	BookBalance	Provisionforbaddebt	Carryingamount
bills
Commercialacceptancebills	21,501,777.16	1,075,088.86	20,426,688.30	8,321,603.55	416,080.18	7,905,523.37
Total	30,686,689.46	1,075,088.86	29,611,600.60	18,685,052.55	416,080.18	18,268,972.37

(b)Notesreceivablediscountedorendorsedtothirdpartiesbutnotyetmaturedat31December2024

Items	Amountderecognisedasattheendofthereportingperiod	Amountnotderecognisedasattheendofthereportingperiod
Bankacceptancebills		3,957,187.86

(c)Notesreceivablebybaddebtprovisionmethod

Category	31December2024
	Bookbalance		Provisionforbaddebt		Carryingamount
	Amount	Proportion(%)	Amount	Provisionratio(%)	Carryingamount
Provisionforbaddebtrecognisedindividually
Provisionforbaddebtrecognisedbygroups	30,686,689.46	100.00	1,075,088.86	3.50	29,611,600.60
Including:Group2	9,184,912.30	29.93			9,184,912.30
Group1	21,501,777.16	70.07	1,075,088.86	5.00	20,426,688.30
Total	30,686,689.46	100.00	1,075,088.86	3.50	29,611,600.60

(Continued)

Category	31December2023
	Bookbalance		Provisionforbaddebt		Carryingamount
	Amount	Proportion(%)	Amount	Provisionratio(%)	Carryingamount
Provisionforbaddebtrecognisedindividually
Provisionforbaddebtrecognisedbygroups	18,685,052.55	100.00	416,080.18	2.23	18,268,972.37
Including:Group2	10,363,449.00	55.46			10,363,449.00
Group1	8,321,603.55	44.54	416,080.18	5.00	7,905,523.37
Total	18,685,052.55	100.00	416,080.18	2.23	18,268,972.37

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Fordetailsofrecognitioncriteriaandexplanationforprovisionofbaddebtbygroups,pleaserefertoNotes3.11.(d)Changesofprovisionforbaddebtduringthereportingperiod

Category	31December2023	Changesduringthereportingperiod				31December2024
Category	31December2023	Provision	Recoveryorreversal	Eliminationorwrite-off	others	31December2024
Provisionforbaddebtrecognisedindividually
Provisionforbaddebtrecognisedbygroups	416,080.18	659,008.68				1,075,088.86
Including:Group2
Group1	416,080.18	659,008.68				1,075,088.86
Total	416,080.18	659,008.68				1,075,088.86

5.3AccountsReceivable(a)Accountsreceivablebyaging

Aging	31December2024	31December2023
Withinoneyear	271,349,349.06	333,204,160.07
1-2years	764,175.79	2,123,874.00
2-3years	1,410,843.36	4,200,458.08
Over3years	20,138,406.23	18,005,255.95
Subtotal	293,662,774.44	357,533,748.10
Less:provisionforbaddebt	33,509,940.01	34,390,986.46
Total	260,152,834.43	323,142,761.64

(b)Accountsreceivablebybaddebtprovisionmethod

Category	31December2024
	Bookbalance		Provisionforbaddebt		Carryingamount
	Amount	Proportion(%)	Amount	Provisionratio(%)	Carryingamount
Provisionforbaddebtrecognisedindividually	25,816,016.35	8.79	24,222,124.31	93.83	1,593,892.04
Provisionforbaddebtrecognisedbygroups	267,846,758.09	91.21	9,287,815.70	3.47	258,558,942.39
Including:Group1	267,846,758.09	91.21	9,287,815.70	3.47	258,558,942.39
Total	293,662,774.44	100.00	33,509,940.01	11.41	260,152,834.43

(Continued)

Category	31December2023
	Bookbalance		Provisionforbaddebt		Carryingamount
	Amount	Proportion(%)	Amount	Provisionratio(%)

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Category	31December2023
	Bookbalance		Provisionforbaddebt		Carryingamount
	Amount	Proportion(%)	Amount	Provisionratio(%)	Carryingamount
Provisionforbaddebtrecognisedindividually	24,708,541.73	6.91	23,148,792.25	93.69	1,559,749.48
Provisionforbaddebtrecognisedbygroups	332,825,206.37	93.09	11,242,194.21	3.38	321,583,012.16
Including:Group1	332,825,206.37	93.09	11,242,194.21	3.38	321,583,012.16
Total	357,533,748.10	100.00	34,390,986.46	9.62	323,142,761.64

Detailedexplanationofprovisionforbaddebt:

(i)Asat31December2024,accountsreceivablewithbaddebtprovisionrecognisedindividually

Name	31December2024
Name	Bookbalance	Provisionforbaddebt	Provisionratio(%)	Reasonforprovision
Othercustomers	25,816,016.35	24,222,124.31	93.83	Existenceofdisputes,poormanagement,ect

(ii)Asat31December2024,accountsreceivablewithbaddebtprovisionrecognisedbygroup1

Aging	31December2024			31December2023
Aging	Accountsreceivable	Provisionforbaddebt	Provisionratio(%)	Accountsreceivable	Provisionforbaddebt	Provisionratio(%)
Withinoneyear	266,494,339.01	8,150,327.80	3.06	330,569,799.62	9,694,581.78	2.93
1-2years	238,812.42	23,881.24	10.00	786,438.13	78,643.81	10.00
Over2years	1,113,606.66	1,113,606.66	100.00	1,468,968.62	1,468,968.62	100.00
Total	267,846,758.09	9,287,815.70	3.47	332,825,206.37	11,242,194.21	3.38

(c)Changesofprovisionforbaddebtduringthereportingperiod

Category	31December2023	Changesduringthereportingperiod				31December2024
Category	31December2023	Provision	Recoveryorreversal	Eliminationorwrite-off	Others	31December2024
Provisionforbaddebtrecognisedindividually	23,148,792.25	4,728,732.75	3,699,262.84		43,862.15	24,222,124.31
Provisionforbaddebtrecognisedbygroups	11,242,194.21	-1,945,944.73			-8,433.78	9,287,815.70
Including:Group1	11,242,194.21	-1,945,944.73			-8,433.78	9,287,815.70
Total	34,390,986.46	2,782,788.02	3,699,262.84		35,428.37	33,509,940.01

(d)Noaccountsreceivablewrittenoffduringthereportingperiod

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

(e)Topfiveclosingbalancesbyentity

Entityname	Balanceofaccountsreceivableasat31December2024	Proportionofthebalancetothetotalaccountsreceivable(%)	Provisionforbaddebtofaccountsreceivable
Totalofthetopfiveaccountsreceivablebalancesattheendoftheperiod	66,853,017.27	22.77	2,006,553.32

5.4AdvancestoSuppliers(a)Advancestosuppliersbyaging

Aging	31December2024		31December2023
Aging	Amount	Proportion(%)	Amount	Proportion(%)
Withinoneyear	3,858,053.60	100.00	6,564,760.64	99.90
1to2years			6,479.34	0.10
Total	3,858,053.60	100.00	6,571,239.98	100.00

(b)Topfiveclosingbalancesbyentity

Entityname	Balanceasat31December2024	Proportionofthebalancetothetotaladvancestosuppliers(%)
Totalofthetopfiveadvancestosuppliersattheendoftheperiod	2,591,111.66	67.16

5.5OtherReceivables(a)Otherreceivablesbyaging

Aging	31December2024	31December2023
Withinoneyear	59,521,049.33	60,575,208.36
1-2years	302,069.34	219,738.83
2-3years	219,738.83	119,250.00
Over3years	1,278,954.90	1,159,704.90
Subtotal	61,321,812.40	62,073,902.09
Less:provisionforbaddebt	4,339,461.13	4,348,110.09
Total	56,982,351.27	57,725,792.00

(b)Otherreceivablesbynature

Nature	31December2024	31December2023
Depositandguaranteereceivable	52,384,967.00	51,775,226.86
Employeeadvancepayments	1,282,327.49	1,549,821.50
Others	7,654,517.91	8,748,853.73
Subtotal	61,321,812.40	62,073,902.09
Less:provisionforbaddebt	4,339,461.13	4,348,110.09

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Nature	31December2024	31December2023
Total	56,982,351.27	57,725,792.00

(c)OtherreceivablesbybaddebtprovisionmethodA.Asat31December2024,provisionforbaddebtrecognisedbasedonthreestagesmodel

Stages	Bookbalance	Provisionforbaddebt	Carryingamount
Stage1	59,786,824.63	2,872,168.83	56,914,655.80
Stage2
Stage3	1,534,987.77	1,467,292.30	67,695.47
Total	61,321,812.40	4,339,461.13	56,982,351.27

Asat31December2024,provisionforbaddebtatstage1:

Category	Bookbalance	Provisionratio(%)	Provisionforbaddebt	Carryingamount
Provisionforbaddebtrecognisedindividually
Provisionforbaddebtrecognisedbygroups	59,786,824.63	4.80	2,872,168.83	56,914,655.80
Including:Group1	51,515,791.06	5.10	2,629,814.29	48,885,976.77
Group2	1,282,327.49			1,282,327.49
Group3	6,988,706.08	3.47	242,354.54	6,746,351.54
Total	59,786,824.63	4.80	2,872,168.83	56,914,655.80

Asat31December2024,provisionforbaddebtatstage3:

Category	Bookbalance	Provisionratio(%)	Provisionforbaddebt	Carryingamount
Provisionforbaddebtrecognisedindividually	1,534,987.77	95.59	1,467,292.30	67,695.47

B.Asat31December2023,provisionforbaddebtrecognisedbasedonthreestagesmodel

Stages	Bookbalance	Provisionforbaddebt	Carryingamount
Stage1	60,655,587.19	2,980,723.19	57,674,864.00
Stage2
Stage3	1,418,314.90	1,367,386.90	50,928.00
Total	62,073,902.09	4,348,110.09	57,725,792.00

Asat31December2023,provisionforbaddebtatstage1:

Category	Bookbalance	Provisionratio(%)	Provisionforbaddebt	Carryingamount
Provisionforbaddebtrecognisedindividually
Provisionforbaddebtrecognisedbygroups	60,655,587.19	4.91	2,980,723.19	57,674,864.00

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Category	Bookbalance	Provisionratio(%)	Provisionforbaddebt	Carryingamount
Including:Group1	51,304,601.86	5.07	2,603,277.66	48,701,324.20
Group2	1,549,821.50			1,549,821.50
Group3	7,801,163.83	4.84	377,445.53	7,423,718.30
Total	60,655,587.19	4.91	2,980,723.19	57,674,864.00

Asat31December2023,provisionforbaddebtatstage3:

Category	Bookbalance	Provisionratio(%)	Provisionforbaddebt	Carryingamount
Provisionforbaddebtrecognisedindividually	1,418,314.90	96.41	1,367,386.90	50,928.00

Basisofprovisionforbaddebtduringthereportingperiod:

Fordetailsofrecognitioncriteriaandexplanationforprovisionofbaddebtbygroups,pleaserefertoNotes3.11(d)Changesofprovisionforbaddebtduringthereportingperiod

Category	31December2023	Changesduringthereportingperiod				31December2024
Category	31December2023	Provision	Recoveryorreversal	Eliminationorwrite-off	Others	31December2024
Provisionforbaddebtrecognisedindividually	1,367,386.90	153,905.40	54,000.00			1,467,292.30
Provisionforbaddebtrecognisedbygroups	2,980,723.19	-108,925.22			370.86	2,872,168.83
Total	4,348,110.09	44,980.18	54,000.00		370.86	4,339,461.13

(e)Nootherreceivableswrittenoffduringthereportingperiod(f)Topfiveclosingbalancesbyentity

Entityname	Balanceasat31December2024	Proportionofthebalancetothetotalotherreceivables(%)	Provisionforbaddebt
Totalofthetopfiveotherreceivablesattheendoftheperiod.	9,225,085.62	15.04	479,606.52

5.6Inventories(a)Inventoriesbycategory

Items	31December2024			31December2023
Items	Bookbalance	Provisionforimpairment	Carryingamount	Bookbalance	Provisionforimpairment	Carryingamount
Rawmaterials	114,983,902.68	2,082,708.59	112,901,194.09	167,281,491.84	5,290,855.71	161,990,636.13
Workinprocess	8,125,895.42		8,125,895.42	12,060,525.88		12,060,525.88
Goodsinstock	1,934,763,585.61	71,303,705.38	1863,459,880.23	1,993,236,975.36	66,621,962.09	1,926,615,013.27

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Items	31December2024			31December2023
Items	Bookbalance	Provisionforimpairment	Carryingamount	Bookbalance	Provisionforimpairment	Carryingamount
Total	2,057,873,383.71	73,386,413.97	1,984,486,969.74	2,172,578,993.08	71,912,817.80	2,100,666,175.28

(b)Provisionforimpairment

Items	31December2023	Increaseduringthereportingperiod		Decreaseduringthereportingperiod		31December2024
Items	31December2023	Provision	Others	Reversalorelimination	Others	31December2024
Rawmaterials	5,290,855.71			3,208,147.12		2,082,708.59
Goodsinstock	66,621,962.09	27,005,965.72	25,097.41	22,349,319.84		71,303,705.38
Total	71,912,817.80	27,005,965.72	25,097.41	25,557,466.96		73,386,413.97

5.7OtherCurrentAssets

Items	31December2024	31December2023
ReclassificationfromdebitsidebalanceofVATpayable	45,766,634.09	52,749,847.21
TermDeposit	29,408,855.46
AdvanceTaxPayment	4,402,072.04	1,364,632.40
Others	18,430,363.63	18,134,912.20
Total	98,007,925.22	72,249,391.81

5.8Long-termEquityInvestments

Investees	31December2023	Changesduringthereportingperiod
Investees	31December2023	Additionalinvestment	Decreaseininvestment	Investmentincome/(losses)recognisedunderequitymethod	Adjustmentsofothercomprehensiveincome	Changesinotherequity
I.Associates
ShanghaiWatchCo.,Ltd.	51,862,607.30			-955,570.46

(Continued)

Investees	Changesduringthereportingperiod			31December2024	Provisionforimpairmentat31December2024
Investees	Declarationofcashdividendsordistributionofprofit	Provisionforimpairment	Others	31December2024	Provisionforimpairmentat31December2024
II.Associates
ShanghaiWatchCo.,Ltd.				50,907,036.84

5.9InvestmentProperties(a)Investmentpropertiesaccountedforusingcostmodel

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Items	Buildingandplants
Initialcost:
Balanceasat31December2023	620,335,023.89
Increaseduringthereportingperiod
Decreaseduringthereportingperiod	75,789,731.02
(i)Transfertofixedassets	75,789,731.02
Balanceasat31December2024	544,545,292.87
Accumulateddepreciationandamortisation:
Balanceasat31December2023	260,079,191.75
Increaseduringthereportingperiod	15,693,988.44
(i)Provision	15,693,988.44
Decreaseduringthereportingperiod	32,230,251.73
(i)Transfertofixedassets	32,230,251.73
Balanceasat31December2024	243,542,928.46
Provisionforimpairment:
Carryingamount:
Balanceasat31December2024	301,002,364.41
Balanceasat31December2023	360,255,832.14

5.10FixedAssets(a)Detailsoffixedassets

Items	Buildingsandconstructions	Machineryequipment	Vehicles	Electricalequipment	Otherequipment	Total
Initialcost:
Balanceasat31December2023	441,589,632.63	130,667,789.21	13,277,093.83	50,657,219.07	44,094,254.35	680,285,989.09
Increaseduringthereportingperiod	75,854,590.88	2,379,881.58		2,557,928.15	1,082,683.36	81,875,083.97
(i)Acquisition		2,353,092.05		2,557,647.89	1,082,683.36	5,993,423.30
(ii)Transferfrominvestmentproperties	75,789,731.02					75,789,731.02
(iii)Exchangedifferencesontranslatingforeignoperations	64,859.86	26,789.53		280.26		91,929.65
Decreaseduringthereportingperiod	1,926,012.87	1,387,079.51	1,245,349.81	1,471,532.10	1,361,194.70	7,391,168.99
(i)Disposal	570,549.99	128,105.05	1,245,349.81	1,427,788.83	1,245,924.14	4,617,717.82
(ii)Exchangedifferencesontranslatingforeignoperations	1,355,462.88	1,258,974.46		43,743.27	115,270.56	2,773,451.17
Balanceasat31December2024	515,518,210.64	131,660,591.28	12,031,744.02	51,743,615.12	43,815,743.01	754,769,904.07
Accumulated

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Items	Buildingsandconstructions	Machineryequipment	Vehicles	Electricalequipment	Otherequipment	Total
depreciation:
Balanceasat31December2023	152,207,027.41	83,133,593.32	12,078,669.40	37,956,542.09	39,124,802.19	324,500,634.41
Increaseduringthereportingperiod	44,774,266.46	8,704,010.54	299,445.54	3,749,008.67	1,214,525.71	58,741,256.92
(i)Provision	12,488,279.49	8,678,572.22	299,445.54	3,748,742.42	1,214,525.71	26,429,565.38
(ii)Transferfrominvestmentproperties	32,230,251.73					32,230,251.73
(iii)Exchangedifferencesontranslatingforeignoperations	55,735.24	25,438.32		266.25		81,439.81
Decreaseduringthereportingperiod	1,020,863.84	1,284,047.80	1,183,082.31	1,305,750.47	1,246,387.25	6,040,131.67
(i)Disposal	395,811.19	113,925.59	1,183,082.31	1,266,625.97	1,131,286.81	4,090,731.87
(ii)Exchangedifferencesontranslatingforeignoperations	625,052.65	1,170,122.21		39,124.50	115,100.44	1,949,399.80
Balanceasat31December2024	195,960,430.03	90,553,556.06	11,195,032.63	40,399,800.29	39,092,940.65	377,201,759.66
Provisionforimpairment:
Carryingamount:
Balanceasat31December2024	319,557,780.61	41,107,035.22	836,711.39	11,343,814.83	4,722,802.36	377,568,144.41
Balanceasat31December2023	289,382,605.22	47,534,195.89	1,198,424.43	12,700,676.98	4,969,452.16	355,785,354.68

(b)Fixedassetswithoutcertificateoftitle

Items	Carryingamount	Reason
Buildingsandconstructions	174,611.32	Defectivepropertyrights

5.11Right-of-useAssets

Items	Buildingsandconstructions
Initialcost:
Balanceasat31December2023	153,209,897.81
Increaseduringthereportingperiod	104,569,011.66
(i)Newleasing	104,563,758.75
(ii)Exchangedifferencesontranslatingforeignoperations	5,252.91
Decreaseduringthereportingperiod	41,047,029.98
Balanceasat31December2024	216,731,879.49
Accumulateddepreciation:
Balanceasat31December2023	43,757,416.17

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Items	Buildingsandconstructions
Increaseduringthereportingperiod	107,307,185.01
(i)Provision	107,301,685.07
(ii)Exchangedifferencesontranslatingforeignoperations	5,499.94
Decreaseduringthereportingperiod	32,770,698.10
Balanceasat31December2024	118,293,903.08
Provisionforimpairment:
Carryingamount:
Balanceasat31December2024	98,437,976.41
Balanceasat31December2023	109,452,481.64

5.12IntangibleAssets

Items	Landuserights	Software	Righttousethetrademark	Total
Initialcost:
Balanceasat31December2023	34,933,822.40	35,242,672.55	16,599,485.22	86,775,980.17
Increaseduringthereportingperiod		3,521,544.01	5,867.94	3,527,411.95
(i)Acquisition		3,521,544.01	5,867.94	3,527,411.95
Decreaseduringthereportingperiod
Balanceasat31December2024	34,933,822.40	38,764,216.56	16,605,353.16	90,303,392.12
Accumulateddepreciation:
Balanceasat31December2023	17,249,475.30	27,593,853.68	10,268,270.42	55,111,599.40
Increaseduringthereportingperiod	733,553.28	2,848,199.71	42,112.57	3,623,865.56
(i)Provision	733,553.28	2,848,199.71	42,112.57	3,623,865.56
Decreaseduringthereportingperiod
Balanceasat31December2024	17,983,028.58	30,442,053.39	10,310,382.99	58,735,464.96
Provisionforimpairment:
Carryingamount:
Balanceasat31December2024	16,950,793.82	8,322,163.17	6,294,970.17	31,567,927.16
Balanceasat31December2023	17,684,347.10	7,648,818.87	6,331,214.80	31,664,380.77

5.13Long-termDeferredExpenses

Items	31December2023	Increaseduringthereportingperiod	Decreaseduringthereportingperiod		31December2024
			Amortisation	Otherdecrease
Counterfabricationexpenses	19,008,343.84	24,379,030.21	19,034,937.92		24,352,436.13

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Items	31December2023	Increaseduringthereportingperiod	Decreaseduringthereportingperiod		31December2024
Items	31December2023	Increaseduringthereportingperiod	Amortisation	Otherdecrease	31December2024
Renovationexpenses	96,297,010.20	35,550,587.92	48,706,771.89		83,140,826.23
Others	7,019,001.09	179,522.85	4,486,463.01		2,712,060.93
Total	122,324,355.13	60,109,140.98	72,228,172.82		110,205,323.29

5.14DeferredTaxAssetsandDeferredTaxLiabilities(a)Deferredtaxassetsbeforeoffsetting

Items	31December2024		31December2023
Items	Deductibletemporarydifferences	Deferredtaxassets	Deductibletemporarydifferences	Deferredtaxassets
Provisionforimpairmentloss	108,844,748.49	25,235,985.22	107,672,653.16	24,371,732.35
Unrealisedintragroupprofit	65,606,873.01	16,083,716.18	83,620,908.60	20,855,280.62
Deductiblelosses	150,789,689.25	35,315,775.40	126,562,143.51	31,197,892.87
EquityIncentive	7,958,442.71	1,839,229.47	6,263,007.85	1,449,733.06
Leaseliabilities	98,553,370.15	24,638,342.52	109,682,960.95	27,420,740.27
Others	11,064,124.31	2,766,031.08	5,168,527.80	1,292,131.95
Total	442,817,247.92	105,879,079.87	438,970,201.87	106,587,511.12

(b)Deferredtaxliabilitiesbeforeoffsetting

Items	31December2024		31December2023
Items	Taxabletemporarydifference	Deferredtaxliabilities	Taxabletemporarydifference	Deferredtaxliabilities
One-offdeductionoffixedassetbeforeCorporateincometax	27,444,135.67	4,116,620.35	28,437,227.07	4,265,584.06
Right-of-useasset	98,388,890.53	24,597,222.63	109,212,305.15	27,303,076.29
Total	125,833,026.20	28,713,842.98	137,649,532.22	31,568,660.35

(c)Netbalanceofdeferredtaxliabilitiesanddeferredtaxassetsafteroffsetting

Items	Offsetamountat31December2024	Netbalanceafteroffsettingat31December2024	Offsetamountat31December2023	Netbalanceafteroffsettingat31December2023
Deferredtaxassets	23,723,301.56	82,155,778.31	26,359,739.66	80,227,771.46
Deferredtaxliabilities	23,723,301.56	4,990,541.42	26,359,739.66	5,208,920.69

(d)Unrecognizeddeferredtaxassets

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Items	31December2024	31December2023
Deductibletemporarydifferences	3,466,155.48	3,395,341.37
Deductiblelosses	42,305,096.05	52,523,345.89
Total	45,771,251.53	55,918,687.26

(e)Deductiblelossesnotrecognisedasdeferredtaxassetswillexpireinthefollowingperiods:

Year	31December2024	31December2023
2024		23,049,503.37
2025	18,449,678.50	29,473,842.52
2026	23,855,417.55
Total	42,305,096.05	52,523,345.89

5.15OtherNon-currentAssets

Items	31December2024			31December2023
Items	Bookbalance	Provisionforimpairment	Carryingamount	Bookbalance	Provisionforimpairment	Carryingamount
Prepaymentoflong-termassets	3,792,253.84		3,792,253.84	9,434,627.17		9,434,627.17

5.16Short-termBorrowings

Items	31December2024	31December2023
Creditloans	124,087,754.51	250,187,763.87
Billdiscounting	3,957,187.86
Accruedinterestpayable	130,566.65	187,763.87
Total	124,087,754.51	250,187,763.87

5.17AccountsPayable

Items	31December2024	31December2023
Payablesforgoods	114,881,141.96	171,652,832.83
Payablesforproject	651,779.61	2,173,074.88
Total	115,532,921.57	173,825,907.71

5.18Receiptsinadvance

Items	31December2024	31December2023
Rentalreceivedinadvance	11,783,796.49	10,267,758.31

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

5.19Contractliabilities

Items	31December2024	31December2023
Advancesforgoods	12,605,722.95	12,286,243.62

5.20EmployeeBenefitsPayable(a)Detailsofemployeebenefitspayable

Items	31December2023	Increaseduringthereportingperiod	Decreaseduringthereportingperiod	31December2024
Short-termemployeebenefits	114,204,051.03	503,849,943.53	538,803,441.50	79,250,553.06
Post-employmentbenefits-definedcontributionplans	5,581,451.36	48,623,343.18	46,235,423.88	7,969,370.66
Terminationbenefits	299,308.21	15,031,771.49	10,290,850.28	5,040,229.42
Total	120,084,810.60	567,505,058.20	595,329,715.66	92,260,153.14

(b)Short-termemployeebenefits

Items	31December2023	Increaseduringthereportingperiod	Decreaseduringthereportingperiod	31December2024
Salaries,bonuses,allowancesandsubsidies	113,282,042.05	445,277,389.38	480,497,002.69	78,062,428.74
Employeebenefits	162,095.02	9,601,151.98	9,688,531.54	74,715.46
Socialinsurance	78.32	23,532,363.96	23,292,392.65	240,049.63
Including:Healthinsurance		21,442,774.67	21,202,803.36	239,971.31
Injuryinsurance	78.32	1,170,191.51	1,170,191.51	78.32
Birthinsurance		919,397.78	919,397.78
Housingaccumulationfund	13,551.00	19,127,275.53	19,133,537.53	7,289.00
Labourunionfundsandemployeeeducationfunds	746,284.64	6,311,762.68	6,191,977.09	866,070.23
Total	114,204,051.03	503,849,943.53	538,803,441.50	79,250,553.06

(c)Definedcontributionplans

Items	31December2023	Increaseduringthereportingperiod	Decreaseduringthereportingperiod	31December2024
Post-employmentbenefits:
1.Basicendowmentinsurance	208,205.97	41,880,916.32	41,848,702.38	240,419.91
2.Unemploymentinsurance	379.88	1,857,822.32	1,857,818.16	384.04
3.Enterpriseannuity	5,372,865.51	4,884,604.54	2,528,903.34	7,728,566.71
Total	5,581,451.36	48,623,343.18	46,235,423.88	7,969,370.66

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

5.21TaxesPayable

Items	31December2024	31December2023
Valueaddedtax(VAT)	33,699,458.80	38,997,243.97
Corporateincometax	11,535,771.24	21,276,050.77
Individualincometax	994,923.84	1,101,633.76
Urbanmaintenanceandconstructiontax	1,359,840.26	1,047,680.77
Educationalsurcharge	972,536.24	748,598.11
Others	1,252,620.97	1,016,953.93
Total	49,815,151.35	64,188,161.31

5.22OtherPayables(a)Otherpayablesbycategory

Items	31December2024	31December2023
Dividendpayable	2,785,293.14	2,058,352.24
Otherpayables	101,853,190.67	119,879,448.83
Total	104,638,483.81	121,937,801.07

(b)Dividendspayable

Items	31December2024	31December2023
Dividendsonordinaryshares	2,785,293.14	2,058,352.24

(c)Otherpayables

Items	31December2024	31December2023
Deposit,securitydeposit	31,563,500.48	34,075,198.63
Repurchaseliabilityforrestrictedshares	12,815,556.81	14,304,862.81
Decorationexpenses	3,978,759.28	10,214,019.04
Accruedexpensesandothers	53,495,374.10	61,285,368.35
Total	101,853,190.67	119,879,448.83

5.23Non-currentLiabilitiesMaturingwithinOneYear

Items	31December2024	31December2023
Leaseliabilitiesduewithinoneyear	63,538,231.06	66,399,004.20

5.24OtherCurrentLiabilities

Items	31December2024	31December2023
Taxpayable-reclassificationfromcreditbalanceofVATPayable	1,529,468.07	1,589,635.30

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

5.25Leaseliabilities

Items	31December2024	31December2023
Leasepayments	101,263,377.23	113,786,386.87
Less:Unrealisedfinanceexpenses	2,659,854.13	3,861,030.15
Subtotal	98,603,523.1	109,925,356.72
Less:leaseliabilitiesduewithinoneyear	63,538,231.06	66,399,004.20
Total	35,065,292.04	43,526,352.52

5.26DeferredIncome

Items	31December2023	Increaseduringthereportingperiod	Decreaseduringthereportingperiod	31December2024	Reason
Governmentgrants	952,785.69		952,785.69		RelatedtoAssets

5.27ShareCapital

Items	31December2023	Changesduringthereportingperiod(+,-)				31December2024
Items	31December2023	Newissues	Bonusissues	Capitalisationofreserves	Others	31December2024
Numberoftotalshares	415,219,970.00				-9,455,963.00	405,764,007.00

Notes:

(i)AccordingtotheresolutionapprovedbytheCompany'sBoardofDirectorsandtheGeneralMeetingofShareholdersontheProposalfortheRepurchaseandCancellationofCertainRestrictedSharesunderthe2018A-ShareRestrictedStockIncentivePlan(PhaseII),thecompanyrepurchasedandcanceled100,200A-sharerestrictedstocksthathadbeengrantedbutwerestillsubjecttorestrictions,heldbythreeformerincentiverecipientswhoresignedandonedeceasedrecipient.(ii)Additionally,aspertheProposalfortheRepurchaseofCertainDomesticallyListedForeignShares(BShares)approvedbytheBoardofDirectorsandtheGeneralMeetingofShareholders,thecompanyagreedtouseitsownfundstorepurchasecertaindomesticallylistedforeignshares(Bshares)throughacentralizedbiddingprocesstoreduceitsregisteredcapital.On10May2024,uponverificationandconfirmationbytheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited,thecompanycanceled9,355,763repurchasedBshares.

5.28CapitalReserves

Items

31December2023

Increaseduringthereportingperiod

Decreaseduringthereportingperiod

31December2024

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Items	31December2023	Increaseduringthereportingperiod	Decreaseduringthereportingperiod	31December2024
Sharepremium	968,257,185.91		55,514,964.42	912,742,221.49
Othercapitalreserves	21,901,847.26	1,695,434.85		23,597,282.11
Total	990,159,033.17	1,695,434.85	55,514,964.42	936,339,503.60

Notes:

(i)AccordingtotheProposalfortheRepurchaseofCertainDomesticallyListedForeignShares(BShares)approvedbythecompany'sBoardofDirectorsandtheGeneralMeetingofShareholders,thecompanyagreedtouseitsownfundstorepurchasecertaindomesticallylistedforeignshares(Bshares)throughacentralizedbiddingprocessforthepurposeofreducingregisteredcapital.OnMay10,2024,uponverificationandconfirmationbytheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited,thecompanycanceled9,355,763repurchasedBshares,resultinginacorrespondingreductionofcapitalreservesbyRMB54,984,906.42.(ii)AccordingtotheProposalonGrantingRestrictedSharestoIncentiveRecipientsunderthe2018A-ShareRestrictedStockIncentivePlan(PhaseII)approvedbythecompany'sBoardofDirectorsandtheGeneralMeetingofShareholders,inthe2024fiscalyear,thecompanyrecognizedrelatedcostsorexpensesfortheservicesprovidedbytheaboveincentiverecipients,resultinginanincreasein"OtherCapitalReserves"byRMB1,695,434.85.(iii)AsperstatedinNote5.27(a),theCompanyrepurchasedrestrictedstock,reducingthe"SharePremium"byRMB530,058.00.

5.29TreasuryStock

Items	31December2023	Increaseduringthereportingperiod	Decreaseduringthereportingperiod	31December2024
ShareRepurchaseforCapitalReduction	64,340,669.42		64,340,669.42
RestrictedStockPayment	14,304,862.81		1,489,306.00	12,815,556.81
Total	78,645,532.23		65,829,975.42	12,815,556.81

Note:

(i)Intheyearof2023,theCompanyrepurchasedatotalof9,355,763BsharesthroughacentralizedbiddingprocessontheShenzhenStockExchange,withatotalrepurchasepaymentofHKD70,401,771.17(excludingtransactionfees),equivalenttoRMB64,340,669.42.On10May2024,uponverificationandconfirmationbytheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited,theCompanycanceledtherepurchased9,355,763Bshares,therebyreducingthe"ShareRepurchaseforCapitalReduction"byRMB64,340,669.42.(ii)AsperstatedNote5.27,theCompanyrepurchasedrestrictedstock,reducing"TreasuryStock"byRMB630,258.00.Fortheyear2024,thereductionintreasurystockrelatedtocash

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

dividendsforrestrictedstockamountedtoRMB859,048.00.(iii)Fortheyear2024,thereductionintreasurystockrelatedtocashdividendsforrestrictedstockamountedtoRMB859,048.00.

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

5.30OtherComprehensiveIncome

Items	31December2023	Changesduringthereportingperiod						31December2024
Items	31December2023	Amountbeforetax	Less:Itemspreviouslyrecognizedinothercomprehensiveincomebeingreclassifiedtocurrentprofitorloss	Less:Itemspreviouslyrecognizedinothercomprehensiveincomebeingreclassifiedtoretainedearnings	Less:Incometaxexpenses	AttributabletoownersoftheCompany	Attributabletonon-controllinginterest	31December2024
(a)Itemswillnotbereclassifiedtoprofitorloss
(b)Itemswillbereclassifiedtoprofitorloss	19,325,335.93	-3,638,541.31				-3,638,541.31		15,686,794.62
Including:Exchangedifferencesontranslatingforeignoperations	19,325,335.93	-3,638,541.31				-3,638,541.31		15,686,794.62
Total	19,325,335.93	-3,638,541.31				-3,638,541.31		15,686,794.62

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

5.31SpecificReserves

Items	31December2023	Increaseduringthereportingperiod	Decreaseduringthereportingperiod	31December2024
Safetyproductioncosts	3,223,158.06	1,521,112.80	404,108.10	4,340,162.76

5.32SurplusReserves

Items	31December2023	Increaseduringthereportingperiod	Decreaseduringthereportingperiod	31December2024
Statutorysurplusreserves	213,025,507.50			213,025,507.50
Others	61,984,894.00			61,984,894.00
Total	275,010,401.50			275,010,401.50

Asof31December2024,theCompany'scumulativesurplusreservehasreached50%ofitsregisteredcapital,andtherefore,nofurtherextractionwillbemadeduringcurrentperiod.

5.33RetainedEarnings

Items	2024	2023
Balanceasattheendoflastperiodbeforeadjustments	1,709,513,385.76	1,479,706,638.53
Adjustmentsfortheopeningbalance(increase/(decrease))
Balanceasatthebeginningofthereportingperiodafteradjustments	1,709,513,385.76	1,479,706,638.53
Add:netprofitattributabletoownersoftheparentcompanyforthereportingperiod	220,350,184.99	333,178,102.37
Less:Declarationofordinarysharedividends	162,345,682.81	103,371,355.14
Balanceasattheendofthereportingperiod	1,767,517,887.94	1,709,513,385.76

5.34Revenueandcostsofsales

Items	2024		2023
Items	Revenue	Costsofsales	Revenue	Costsofsales
Principalactivities	3,928,845,057.63	2,475,847,402.83	4,553,706,250.49	2,904,751,241.51
Otheractivities	11,685,876.44	350,531.60	15,983,752.50	712,233.30
Total	3,940,530,934.07	2,476,197,934.43	4,569,690,002.99	2,905,463,474.81

Principalactivitiesbycategory

Items

2024

2023

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

	Revenue	Costsofsales	Revenue	Costsofsales
WatchBrandBusiness	721,623,074.27	236,520,324.15	797,083,010.50	263,771,395.75
WatchRetailServices	2,934,683,059.47	2,080,768,868.69	3,470,288,123.32	2,481,853,312.97
PrecisionTechnologyBusiness	134,469,811.50	115,312,826.08	135,950,405.45	114,733,104.70
LeasingBusiness	138,069,112.39	43,245,383.91	150,361,811.22	44,370,528.09
Others	11,685,876.44	350,531.60	16,006,652.50	735,133.30
Total	3,940,530,934.07	2,476,197,934.43	4,569,690,002.99	2,905,463,474.81

5.35TaxesandSurcharges

Items	2024	2023
Urbanmaintenanceandconstructiontax	10,496,860.12	12,205,585.22
Educationalsurcharge	7,450,711.80	8,641,027.84
Propertytax	7,672,948.68	7,512,564.92
Stampduty	2,638,753.37	3,040,109.98
Others	3,217,860.83	4,794,558.14
Total	31,477,134.80	36,193,846.10

5.36SellingandDistributionExpenses

Items	2024	2023
EmployeeCompensation	350,108,585.64	364,493,305.57
Departmentstoreexpenseandrental	141,659,138.17	159,738,493.87
Advertising,Exhibition,andMarketingExpenses	143,251,551.40	146,787,677.11
Depreciationandamortization	187,804,323.98	187,456,893.25
Packagingexpenses	8,732,106.49	10,367,129.63
Utilitiesandpropertymanagementexpenses	22,259,318.73	22,673,870.27
TransportationExpenses	5,326,216.64	5,921,929.02
OfficeExpenses	5,299,644.22	6,285,406.47
TravelExpenses	6,511,503.28	8,415,884.60
BusinessEntertainmentExpenses	3,354,425.04	4,581,476.42
Others	8,470,993.04	7,287,113.11
Total	882,777,806.63	924,009,179.32

5.37GeneralandAdministrativeExpenses

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Items	2024	2023
EmployeeCompensation	141,263,743.91	159,074,391.51
Depreciationandamortization	21,858,646.45	23,462,090.05
TravelExpenses	3,444,726.00	4,773,457.90
OfficeExpenses	3,237,040.25	3,174,249.82
IntermediaryAgentsfees	2,072,802.52	1,917,258.68
Utilities,PropertyManagement,andRentalFees	1,050,016.25	1,359,636.27
BusinessEntertainmentExpenses	854,422.68	1,368,967.18
VehicleandTransportationExpenses	1,184,673.02	1,884,805.22
Telecommunicationexpenses	329,077.20	368,370.99
Others	7,982,781.89	7,976,049.62
Total	183,277,930.17	205,359,277.24

5.38ResearchandDevelopmentExpenses

Items	2024	2023
EmployeeCompensation	38,055,759.66	43,658,293.35
SampleandMaterialCosts	1,635,339.74	2,137,565.99
DepreciationandAmortization	4,783,178.84	4,300,190.56
TechnicalCooperationFees	3,704,971.76	2,737,439.29
Others	7,820,750.18	4,968,754.89
Total	56,000,000.18	57,802,244.08

5.39FinanceCosts

Items	2024	2023
Interestexpenses	10,697,706.12	12,824,222.06
Less:Interestincome	4,925,264.78	5,722,586.39
Netinterestexpenses	5,772,441.34	7,101,635.67
Netforeignexchangelosses	1,151,055.95	1,879,443.15
Bankchargesandothers	11,001,374.05	12,488,693.95
Total	17,924,871.34	21,469,772.77

5.40OtherIncome

Items	2024	2023
1.Governmentgrantrecognisedinotherimcome	5,480,540.76	9,105,016.49

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Items	2024	2023
Including:Governmentgrantrelatedtodeferredincome	952,785.69	343,141.11
Governmentgrantdirectlyrecognisedincurrentprofitorloss	4,527,755.07	9,105,016.49
2.Othersrelatedtodailyoperationactivitiesandrecognisedinotherincome	2,012,101.57	2,330,357.29
Including:Chargesofwithholdingindividualincometax	477,697.33	494,598.35
AdditionalDeductionforInputVAT	1,534,404.24	1,835,758.94
Total	7,492,642.33	11,435,373.78

5.41InvestmentIncome/(Losses)

Items	2024	2023
Investmentincomefromlong-termequityinvestmentsunderequitymethod	-955,570.46	-5,819,479.60
Interestincomefromtermdeposit	524,315.57
Total	-431,254.89	-5,819,479.60

5.42CreditImpairmentLosses

Items	2024	2023
Baddebtofnotesreceivable	-659,008.68	716,798.30
Baddebtofaccountsreceivable	916,474.82	6,194,108.85
Baddebtofotherreceivables	9,019.82	-83,331.33
Total	266,485.96	6,827,575.82

5.43AssetImpairmentLosses

Items	2024	2023
Impairmentofinventories	-19,289,865.31	571,980.37

5.44Gains/(losses)fromDisposalofAssets

Items	2024	2023
Gains/(losses)fromdisposaloffixedassets	2,795,633.25	527,753.57
Gains/(losses)fromdisposalofRight-of-useassets	-427,816.65	158,115.00
Total	2,367,816.60	685,868.57

5.45Non-operatingIncome

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Items	2024	2023	Recognisedincurrentnon-recurringprofitorloss
Nopayablesrequired	1,217,512.88	1,346,926.73	1,217,512.88
Compensationincome	1,916,585.22	3,153,875.60	1,916,585.22
Others	489,407.21	269,704.47	489,407.21
Total	3,623,505.31	4,770,506.80	3,623,505.31

5.46Non-operatingExpenses

Items	2024	2023	Recognisedincurrentnon-recurringprofitorloss
Donations	243,626.35	311,464.98	243,626.35
Fineandpenaltyforlatepayment	143,706.74	6,014.28	143,706.74
Paymentforbreachofagreement	279,932.96	37,725.30	279,932.96
Others	121,651.88	504,565.54	121,651.88
Total	788,917.93	859,770.10	788,917.93

5.47IncomeTaxExpenses

(a)Detailsofincometaxexpenses

Items	2024	2023
Currenttaxexpenses	67,911,869.72	88,559,245.72
Deferredtaxexpenses	-2,146,386.12	15,266,916.22
Total	65,765,483.60	103,826,161.94

(b)Reconciliationofaccountingprofitandincometaxexpenses

Items	2024	2023
Profitbeforetax	286,115,668.59	437,004,264.31
Incometaxexpenseatthestatutory/applicabletaxrate	71,528,917.15	109,251,066.08
Effectofdifferenttaxrateofsubsidiaries	-2,574,951.45	-10,206,789.27
Adjustmentsofimpactfrompriorperiodincometax	440,345.72	6,187,582.94
Effectofincomethatisexemptfromtaxation	238,892.62	1,454,869.90
Effectofnon-deductiblecosts,expensesorlosses	1,160,439.96	781,125.37
Effectofpreviouslyunrecogniseddeductiblelossesrecognisedasdeferredtaxassets	-172,422.26	-337,571.86
Effectofdeductibletemporarydifferencesanddeductiblelossesnotrecognisedasdeferredtaxassets
R&Dexpensesplusdeduction	-4,855,738.14	-4,769,518.22

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Items	2024	2023
Others		1,465,397.00
Incometaxexpenses	65,765,483.60	103,826,161.94

5.48OtherComprehensiveIncomeFordetailsoftheothercomprehensiveincomeandrelatedtaxeffect,transfertoprofitorlossandadjustmentofothercomprehensiveincome,pleaserefertoNote5.30OtherComprehensiveIncome.

5.49NotestotheStatementofCashFlow(a)Cashrelatingtooperatingactivities(i)Othercashreceivedrelatingtooperatingactivities

Items	2024	2023
Securitydeposit	9,790,425.68	7,550,296.24
Governmentgrants	4,922,856.45	8,796,670.12
Promotionexpenses	12,351,768.55	12,561,700.18
Interestincome	4,925,264.78	5,722,586.39
Returnofpettycash	3,851,281.76	7,787,782.02
Others	13,783,494.72	25,760,176.26
Total	49,625,091.94	68,179,211.21

(ii)Othercashpaymentsrelatingtooperatingactivities

Items	2024	2023
Securitydeposit	8,953,141.58	11,191,285.76
Periodexpensesandothers	321,439,889.86	376,446,802.93
Total	330,393,031.44	387,638,088.69

(b)Cashrelatingtoinvestingactivities(i)Othercashreceivedrelatingtoinvestingactivities

Items	2024	2023
Withdrawaloftimedeposits	201,839,677.57

(ii)Othercashpaymentsrelatingtoinvestingactivities

Items

2024

2023

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Items	2024	2023
Purchaseoftimedeposits	231,179,882.49

(c)Cashrelatingtofinancingactivities(i)Othercashpaymentsrelatingtofinancingactivities

Items	2024	2023
Paymentforprincipalandinterestofleaseliabilities	115,962,403.46	114,908,744.94
Paymentforsharebuyback	794,690.45	83,148,230.83
Total	116,757,093.91	198,056,975.77

(ii)Changesinliabilitiesarisingfromfinancingactivities

Items	31December2023	Increaseinthecurrentperiod		Decreaseinthecurrentperiod		31December2024
Items	31December2023	Changesincash	Changesinnon-cash	Changesincash	Changesinnon-cash	31December2024
Short-termborrowings	250,187,763.87	323,957,187.86	8,607,074.56	456,926,871.78	1,737,400.00	124,087,754.51
Dividendpayables	2,058,352.24		162,345,682.81	161,618,741.91		2,785,293.14
Non-currentliabilitiesmaturingwithinoneyear	66,399,004.20		113,101,630.32	115,962,403.46		63,538,231.06
Leaseliabilities	43,526,352.52		104,640,569.84		113,101,630.32	35,065,292.04
Total	362,171,472.83	323,957,187.86	388,694,957.53	734,508,017.15	114,839,030.32	225,476,570.75

5.50SupplementaryInformationtotheStatementofCashFlows(a)Supplementaryinformationtothestatementofcashflows

Supplementaryinformation	2024	2023
(i)Adjustmentsofnetprofittocashflowsfromoperatingactivities:
Netprofit	220,350,184.99	333,178,102.37
Add:Provisionsforimpairmentofassets	19,289,865.31	-571,980.37
ImpairmentLossofCredit	-266,485.96	-6,827,575.82
Depreciationoffixedassets,InvestmentProperties,oilandgasassetandproductivebiologicalassets	42,123,553.82	41,658,377.46
Depreciationofright-of-useassets	107,301,685.07	103,958,386.94
Amortisationofintangibleassets	3,623,865.56	3,689,183.21
Amortisationoflong-termdeferredexpenses	72,228,172.82	91,039,489.52
Losses/(gains)ondisposaloffixedassets,intangibleassetsandotherlong-termassets	-2,367,816.60	-685,868.57

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Supplementaryinformation	2024	2023
Losses/(gains)onscrappingoffixedassets
Losses/(gains)onchangesinfairvalue
Financecosts/(income)	10,697,706.12	10,346,099.61
Investmentlosses/(income)	431,254.89	5,819,479.60
Decreases/(increases)indeferredtaxassets	-1,928,006.85	15,556,840.48
Increases/(decreases)indeferredtaxliabilities	-218,379.27	-289,924.26
Decreases/(increases)ininventories	114,705,609.37	82,605,123.05
Decreases/(increases)inoperatingreceivables	55,993,621.50	34,507,754.85
Increases/(decreases)inoperatingpayables	-106,350,875.18	-77,781,831.49
Others	1,117,004.70	-3,800,168.60
Netcashflowsfromoperatingactivities	536,730,960.29	632,401,487.98
(ii)Significantactivitiesnotinvolvingcashreceiptsandpayments:
Conversionofdebtintocapital
Convertiblecorporatebondsmaturingwithinoneyear
Assetsunderleases(otherthanleasesundersimplifiedmethod)
(iii)Netincreasesincashandcashequivalents:
Cashattheendofthereportingperiod	518,954,177.49	504,629,153.71
Less:Cashatthebeginningofthereportingperiod	504,629,153.71	313,738,389.64
Add:Cashequivalentsattheendofthereportingperiod
Less:Cashequivalentsatthebeginningofthereportingperiod
Netincreaseincashandcashequivalents	14,325,023.78	190,890,764.07

(b)Thecomponentsofcashandcashequivalents

Items	31December2024	31December2023
(i)Cash	518,954,177.49	504,629,153.71
Including:Cashonhand	76,344.01	178,996.87
Cashinbankavailableforimmediateuse	516,822,193.38	503,187,176.88
Othermonetaryfundsavailableforimmediateuse	2,055,640.10	1,262,979.96
(ii)Cashequivalents
Including:Bondinvestmentsmaturingwithinthreemonths
(iii)Cashandcashequivalentsattheendofthereportingperiod	518,954,177.49	504,629,153.71
IncludingRestrictedcashandcashequivalentsfortheCompanyanditssubsidiaries	6,150,258.49	1,202,601.86

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

(c)Presentedascashandcashequivalentsdespiterestrictionsinscopeofapplication

Items	2024	Reason
Cashinbank	6,150,258.49	TheCompany'ssubsidiary,FIYTAHongKong,anditssubsidiary,MontresChourietSA,holdfundsinaccountslocatedoverseas.Thesefundsaresubjecttorestrictionsonrepatriation,butthisdoesnotaffecttheirdailyuse.

5.51ForeignCurrencyMonetaryItems(a)Foreigncurrencymonetaryitemsat31December2024:

Items	Carryingamountatforeigncurrency	Exchangerate	CarryingamountatRMB
Monetaryfunds			1,836,199.12
Including:USD	143,692.62	7.1884	1,032,920.03
EUR	76.45	7.5257	575.34
HKD	864,222.52	0.9260	800,270.05
CHF	304.30	7.9977	2,433.70
Accountsreceivable			7,194,794.22
Including:USD	476,343.23	7.1884	3,437,188.55
HKD	3,828,760.82	0.9260	3,545,585.67
CHF	26,433.04	7.9977	212,020.00
Otherreceivables			238,586.48
Including:HKD	119,458.42	0.9260	110,623.28
CHF	16,000.00	7.9977	127,963.20
Accountspayable			513,267.92
Including:HKD	529,282.90	0.9260	490,137.14
CHF	2,892.18	7.9977	23,130.78
Otherpayables			873,332.12
Including:HKD	693,207.47	0.9260	641,937.85
CHF	28,932.60	7.9977	231,394.27

(b)OverseasbusinessentityPleaserefertheNote3.4,forthedetailsofthemainoperatinglocationsandfunctionalcurrenciesofsignificantoverseasoperatingentities.

5.52Leases

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

(a)TheCompanyasalessee

Items	2024
Expensesforshort-termleaseundersimplifiedmethod	1,107,921.80
Expensesforleaseoflowvalueasset(exceptforshort-termlease)undersimplifiedmethod
Interestexpenseofleaseliabilities	4,389,799.99
Variableleasepaymentsnotincludedinleaseliabilitiesrecognisedincurrentprofitorloss	77,146,168.89
Incomefromsubleasingtheright-of-useassets
Cashoutflowsrelatedtoleases	194,216,494.15
Profitorlossinsaleandleasebacktransaction

(b)TheCompanyasalessor(i)OperatingleaseA.Leaseincome

Items	2024
Leaseincome	138,069,112.39
Including:incomerelatedtovariableleasepaymentsnotincludedinleasereceivables

6.RESEARCHANDDEVELOPMENTEXPENDITURES

Items	2024	2023
EmployeeCompensation	38,055,759.66	43,658,293.35
SampleandMaterialCosts	1,635,339.74	2,137,565.99
DepreciationandAmortization	4,783,178.84	4,300,190.56
TechnicalCooperationFees	3,704,971.76	2,737,439.29
Others	7,820,750.18	4,968,754.89
Total	56,000,000.18	57,802,244.08
Including：ExpensedR&Dexpenditures	56,000,000.18	57,802,244.08
CapitalizedR&Dexpenditures

7.INTERESTSINOTHERENTITIES

7.1InterestsinSubsidiaries

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

(a)Compositionofcorporategroup

Nameofsubsidiary	Principalplaceofbusiness	RegisteredAddress	Natureofbusiness	PercentageofequityinterestsbytheCompany(%)		Waysofacquisition
Nameofsubsidiary	Principalplaceofbusiness	RegisteredAddress	Natureofbusiness	Direct	Indirect	Waysofacquisition
ShenzhenHARMONYWorldWatchCenterCo.,Ltd.	Shenzhen	Shenzhen	Commerce	100.00		Incorporatedorinvestment
FIYTASalesCo.,Ltd.	Shenzhen	Shenzhen	Commerce	100.00		Incorporatedorinvestment
ShenzhenFIYTAPrecisionTechnologyCo.,Ltd.	Shenzhen	Shenzhen	Manufacturing	99.44	0.56	Incorporatedorinvestment
ShenzhenFIYTATechnologyDevelopmentCo.,Ltd.	Shenzhen	Shenzhen	Manufacturing	100.00		Incorporatedorinvestment
HARMONYWorldWatchCenter(Hainan)Co.,Ltd.	Sanya	Sanya	Commerce	100.00		Incorporatedorinvestment
ShenzhenXunhangPrecisionTechnologyCo.,Ltd.	Shenzhen	Shenzhen	Manufacturing	100.00		Incorporatedorinvestment
EmileChoureitTiming(Shenzhen)Ltd.	Shenzhen	Shenzhen	Commerce	100.00		Incorporatedorinvestment
LiaoningHengdaruiCommercial&TradeCo.,Ltd.	Shenyang	Shenyang	Commerce	100.00		Businesscombinationundercommoncontrol
Temporal(Shenzhen)Co.,Ltd.	Shenzhen	Shenzhen	Commerce	100.00		Incorporatedorinvestment
ShenzhenHarmonyE-commerceCo.,Ltd.	Shenzhen	Shenzhen	Commerce	100.00		Incorporatedorinvestment
FIYTA(HongKong)Limited	HongKong	HongKong	Commerce	100.00		Incorporatedorinvestment
MontresChourietSA	Switzerland	Switzerland	Manufacturing		100.00	Businesscombinationnotundercommoncontrol

7.2InterestsinJointArrangementsorAssociates(a)Significantassociates

Companyname	Principalplaceofbusiness	Registeredaddress	Natureofbusiness	ProportionofequityinterestsbytheCompany(%)		Measurementmethods
				Direct	Indirect
ShanghaiWatchCo.,Ltd.	Shanghai	Shanghai	Commerce	25%		Equitymethod

(b)Mainfinancialinformationofthesignificantassociates

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Items	31December2024/2024	31December2023/2023
Currentassets	209,477,074.16	165,796,119.65
Non-currentassets	15,193,917.74	16,753,785.07
Totalassets	224,670,991.90	182,549,904.72
Currentliabilities	106,724,940.61	60,781,571.60
Non-currentliabilities
Totalliabilities	106,724,940.61	60,781,571.60
Non-controllinginterests
Totalowner’sequityattributabletoparentcompany	117,946,051.29	121,768,333.12
Shareofnetassetscalculatedattheproportionofequityinterests	29,486,512.82	30,442,083.28
Adjustmentmatters	21,420,524.02	21,420,524.02
—Goodwill	21,420,524.02	21,420,524.02
—Unrealizedprofitfromintragrouptransaction
—Others
Carryingamountofinvestmentintheassociate	50,907,036.84	51,862,607.30
Fairvalueofpubliclyquotedequityinvestmentinassociate
Revenue	121,182,617.88	110,947,629.04
Netprofit/(loss)	-3,822,281.83	-23,277,918.41
Netprofitfromdiscontinuedoperations
Othercomprehensiveincome
Totalcomprehensiveincome	-3,822,281.83	-23,277,918.41
Dividendsreceivedfromtheassociate		500,000.00

8.GOVERNMENTGTRANTS

8.1Liabilityitemsthatinvolvegovernmentgrants

Itemspresentedinthestatementoffinancialposition	Balanceasat31December2023	Increaseingovernmentgrantsduringthereportingperiod	Amountrecognisedinnon-operatingincomeduringthereportingperiod	Amountrecognisedinotherincomeduringthereportingperiod	Otherchangesduringthereportingperiod	Balanceasat31December2024	Relatedtoassetsorincome
Deferredincome	952,785.69			952,785.69			Relatedtoassets

8.2Governmentgrantsrecognisedincurrentprofitorloss

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Itemspresentedinincomestatement	2024	2023
Otherincome	5,480,540.76	9,105,016.49

9.RISKSRELATEDTOFINANCIALINSTRUMENTSRisksrelatedtothefinancialinstrumentsoftheCompanyarisefromtherecognitionofvariousfinancialassetsandfinancialliabilitiesduringitsoperation,includingcreditrisk,liquidityriskandmarketrisk.ManagementoftheCompanyisresponsiblefordeterminingriskmanagementobjectivesandpoliciesrelatedtofinancialinstruments.Operationalmanagementisresponsibleforthedailyriskmanagementthroughfunctionaldepartments(e.g.creditmanagementdepartmentoftheCompanyreviewseachcreditsale).Internalauditdepartmentisresponsibleforthedailysupervisionofimplementationoftheriskmanagementpoliciesandprocedures,andreporttheirfindingstotheauditcommitteeinatimelymanner.OverallriskmanagementobjectiveoftheCompanyistoestablishriskmanagementpoliciestominimizetheriskswithoutundulyaffectingthecompetitivenessandresilienceoftheCompany.

9.1CreditRiskCreditriskistheriskofonepartyofthefinancialinstrumentfacetoafinanciallossbecausetheotherpartyofthefinancialinstrumentfailstofulfillitsobligation.ThecreditriskoftheCompanyisrelatedtocashandequivalent,notesreceivable,accountsreceivables,otherreceivablesandlong-termreceivables.Creditriskofthesefinancialassetsisderivedfromthecounterparty’sbreachofcontract.Themaximumriskexposureisequaltothecarryingamountofthesefinancialinstruments.CashandcashequivalentoftheCompanyhaslowercreditrisk,astheyaremainlydepositedinsuchfinancialinstitutionsascommercialbank,ofwhichtheCompanythinkswithhigherreputationandfinancialposition.Fornotesreceivable,accountsreceivable,accountsreceivablefinancingandotherreceivables,theCompanyestablishesrelatedpoliciestocontroltheircreditriskexposure.TheCompanyassessescreditcapabilityofitscustomersanddeterminestheircredittermsbasedontheirfinancialposition,possibilityoftheguaranteefromthirdparty,creditrecordandotherfactors(suchascurrentmarketstatus,etc.).TheCompanymonitorsitscustomers’creditrecordperiodically,andforthosecustomerswithpoorcreditrecord,theCompanywilltakemeasuressuchaswrittencall,shorteningorcancellingtheircredittermssoastoensuretheoverallcreditriskoftheCompanyiscontrollable.(i)Determinationofsignificantincreasesincreditrisk

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

TheCompanyassessesateachreportingdateastowhetherthecreditriskonfinancialinstrumentshasincreasedsignificantlysinceinitialrecognition.WhentheCompanydetermineswhetherthecreditriskhasincreasedsignificantlysinceinitialrecognition,itconsidersbasedonreasonableandsupportableinformationthatisavailablewithoutunduecostoreffort,includingquantitativeandqualitativeanalysisofhistoricalinformation,externalcreditratingsandforward-lookinginformation.TheCompanydeterminesthechangesintheriskofadefaultoccurringovertheexpectedlifeofthefinancialinstrumentthroughcomparingtheriskofadefaultoccurringonthefinancialinstrumentasatthereportingdatewiththeriskofadefaultoccurringonthefinancialinstrumentasatthedateofinitialrecognitionbasedonindividualfinancialinstrumentoragroupoffinancialinstrumentswiththesimilarcreditriskcharacteristics.Whenmetoneormoreofthefollowingquantitativeorqualitativecriteria,theCompanydeterminesthatthecreditriskonfinancialinstrumentshasincreasedsignificantly:thequantitativecriteriaappliedmainlybecauseasatthereportingdate,theincreaseintheprobabilityofdefaultoccurringoverthelifetimeismorethanacertainpercentagesincetheinitialrecognition;thequalitativecriteriaappliedifthedebtorhasadversechangesinbusinessandeconomicconditions,earlywarninglistofcustomer,andetc.(ii)Definitionofcredit-impairedfinancialassetsThecriteriaadoptedbytheCompanyfordeterminationofcreditimpairmentareconsistentwithinternalcreditriskmanagementobjectivesofrelevantfinancialinstrumentsinconsideringbothquantitativeandqualitativeindicators.WhentheCompanyassesseswhetherthedebtorhasincurredthecreditimpairment,themainfactorsconsideredareasfollowing:Significantfinancialdifficultyoftheissuerortheborrower;abreachofcontract,e.g.,defaultorpast-dueevent;alenderhavinggrantedaconcessiontotheborrowerforeconomicorcontractualreasonsrelatingtotheborrower’sfinancialdifficultythatthelenderwouldnototherwiseconsider;theprobabilitythattheborrowerwillenterbankruptcyorotherfinancialre-organisation;thedisappearanceofanactivemarketforthefinancialassetbecauseoffinancialdifficultiesoftheissuerortheborrower;thepurchaseororiginationofafinancialassetatadeepdiscountthatreflectstheincurredcreditlosses.(iii)TheparameterofexpectedcreditlossmeasurementThecompanymeasuresimpairmentprovisionfordifferentassetswiththeexpectedcreditlossof12-monthorthelifetimebasedonwhethertherehasbeenasignificantincreaseincreditriskorcreditimpairmenthasoccurred.Thekeyparametersforexpectedcreditlossmeasurementincludedefaultprobability,defaultlossrateanddefaultriskexposure.TheCompanysetsupthe

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

modelofdefaultprobability,defaultlossrateanddefaultriskexposureinconsideringthequantitativeanalysisofhistoricalstatistics(suchascounterparties’ratings,guaranteemethodandcollateraltype,repaymentmethod,etc.)andforward-lookinginformation.Relevantdefinitionsareasfollowing:

Defaultprobabilityreferstotheprobabilityofthedebtorwillfailtodischargetherepaymentobligationoverthenext12monthsortheentireremaininglifetime;DefaultlossratereferstotheCompany'sexpectationofthelossdegreeofdefaultriskexposure.Thedefaultlossratevariesdependingonthetypeofcounterparty,recoursemethodandpriority,andthecollateral.Thedefaultlossrateisthepercentageoftheriskexposurelosswhendefaulthasoccurredanditiscalculatedoverthenext12monthsortheentirelifetime;Thedefaultriskexposurereferstotheamountthatthecompanyshouldberepaidwhendefaulthasoccurredinthenext12monthsortheentirelifetime.Boththeassessmentofsignificantincreaseincreditriskofforward-lookinginformationandthecalculationofexpectedcreditlossesinvolveforward-lookinginformation.Throughhistoricaldataanalysis,theCompanyidentifieskeyeconomicindicatorsthathaveimpactonthecreditriskandexpectedcreditlossesforeachbusiness.ThemaximumexposuretocreditriskoftheCompanyisthecarryingamountofeachfinancialassetinthestatementoffinancialposition.TheCompanydoesnotprovideanyotherguaranteesthatmayexposetheCompanytocreditrisk.FortheaccountsreceivableoftheCompany,theamountoftop5clientsrepresents22.77%ofthetotal(31December2023:21.42%).

9.2LiquidityRiskLiquidityriskistheriskofshortageoffundswhenfulfillingtheobligationofsettlementbydeliveringcashorotherfinancialassets.TheCompanyisresponsibleforthecapitalmanagementofallofitssubsidiaries,includingshort-terminvestmentofcashsurplusanddealingwithforecastedcashdemandbyraisingloans.TheCompany’spolicyistomonitorthedemandforshort-termandlong-termfloatingcapitalandwhethertherequirementofloancontractsissatisfiedsoastoensuretomaintainadequatecashandcashequivalents.Asat31December2024,thematurityprofileoftheCompany’sfinancialliabilitiesisasfollows:

Unit:RMB10,000

Items

31December2024

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

	Within1year	1-2years	2-3years	Over3years
Short-termloans	12,408.78
Accountspayable	11,553.29
Otherpayables	10,463.85
Non-currentliabilitiesmaturingwithinoneyear	6,353.82
Leaseliabilities		2,851.41	655.12
Total	40,779.74	2,851.41	655.12

9.3MarketRisk(a)ForeigncurrencyriskExceptfortheoperationsoftheCompany’ssubsidiarieslocatedinHongKongandforeigncountriesaredenominatedandsettledinHKD,USD,BPD,RMBandSGD,othermainoperationsoftheCompanyaresettledinRMB.ExceptthattheCompany’ssubsidiaryinHongKongusesHKDassettlementcurrencyandsub-subsidiaryinSwissusedCHFassettlementcurrency,theprincipalplacesofoperationsoftheCompanyarelocatedinChinaandthemajorbusinessesaresettledinRMB.However,theCompany’srecognizedforeigncurrencyassetsandliabilitiesaswellastheforeigncurrencytransactionsinthefuture(thefunctionalcurrenciesofforeignassetsandliabilitiesaswellasthetransactionsaremainlyHKDandCHF)remainexposedtoexchangeraterisk.(i)PleaserefertoNote5.51ForeignCurrencyMonetaryItems,forthedetailsofthemainforeigncurrencyriskexposuresoftheCompany’sforeigncurrencyassetsandliabilitiesasat31December2024.(ii)SensitivityanalysisAsat31December2024,ifRMBappreciatesordepreciates5%againstUSD,whileallotherriskvariablesstayunchanged,netprofitincurrentyearoftheCompanywillincreaseordecreasebyRMB394,100(31December2023:RMB129,500).(b)InterestrateriskInterestrateriskoftheCompanyprimarilyarisesfromitslong-terminterest-bearingdebts,suchaslong-termloansandbondspayables,etc.FinancialliabilitieswithfloatinginterestratemaketheCompanysubjecttocashflowinterestraterisk,andfinancialliabilitieswithfixedinterestratemaketheCompanysubjecttofairvalueinterestraterisk.TheCompanydeterminestherelativeproportionofthefixedinterestcontractsandfloatinginterestcontractsbasedonthecurrentmarketenvironment.FinancedepartmentoftheCompany’sheadquartermonitorsinterestrateofthegroupcontinuously.Increaseoftheinterestratewillresultintheincreaseofthecostofnewinterest-bearingdebtsandtheinterestexpenseoftheunpaidinterest-bearingdebtswithfloatingrate,andsubsequentlyleadtosignificantnegativeimpactonthefinancialperformanceofthe

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Company.Themanagementmakesadjustmentinaccordancewiththeupdatemarketconditioninatimelymanner.Asat31December2024,thecompanydoesnothaveanylong-terminterest-bearingdebt.

10.FAIRVALUEDISCLOSURES

10.1AssetsandLiabilitiesMeasuredatFairValueat31December2024Asat31December2024,theCompanydoesnothavefinancialinstrumentsmeasuredatfairvalue.

10.2FairValueofFinancialAssetsorFinancialLiabilitieswhicharenotMeasuredatFairValueFinancialassetsandfinancialliabilitiesnotmeasuredatfairvalueinclude:accountsreceivable,short-termborrowings,accountspayable,long-termborrowingsduewithinoneyear,andequityinstrumentinvestmentthatdoesnothavepublicquotationinanactivemarketanditsfairvaluecannotbemeasuredreliably.Thedifferencebetweenfairvalueandcarryingamountoftheabovefinancialassetsandliabilitiesthatnotmeasuredatfairvalueisinsignificant.

11.RELATEDPARTIESANDRELATEDPARTYTRANSACTIONSRecognitionofrelatedparties:TheCompanyhascontrolorjointcontrolof,orexercisesignificantinfluenceoveranotherparty;ortheCompanyandanotherpartyarecontrolledorjointlycontrolledbythesamethirdparty.

11.1GeneralInformationoftheParentCompany

Nameoftheparent	Registeredaddress	Natureofthebusiness	Registeredcapital	PercentageofequityinterestsintheCompany(%)	VotingrightsintheCompany(%)
AVICInternationalHoldingsLimited	Shenzhen	Commercial	116,616.20	40.17	40.17

DetailsoftheparentcompanyAVICInternationalHoldingsLimitedisasubsidiarythat100.00%held,indirectly,byAVICInternational.(b)UltimatecontrollingpartyoftheCompanyisAVIC.

11.2GeneralInformationofSubsidiariesDetailsofthesubsidiariespleaserefertoNotes7INTERESTSINOTHERENTITIES.

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

11.3AssociatesoftheCompanyDetailsofsignificantassociatespleaserefertoNotes7INTERESTSINOTHERENTITIES.

11.4OtherRelatedPartiesoftheCompany

Name	RelationshipwiththeCompany
ChinaMerchantsPropertyOperation&ServiceCo.,Ltd.anditssubsidiaries(hereinafterreferredtoas"CMPOanditssubsidiaries")	Theassociateoftheultimatecontrollingparty
AviationIndustryCorporationofChinaanditssubsidiaries(hereinafterreferredtoas"AVICanditssubsidiaries")	Underthesamecontrol

Thedirectors,managers,ChiefFinancialOfficer(CFO),andSecretarytotheBoardofDirectors(hereinafterreferredtoas"keymanagementpersonnel").

11.5RelatedPartyTransactions(a)Purchasesorsalesofgoods,renderingorreceivingofservicesPurchasesofgoods,receivingofservices:

Keymanagementpersonnel

Relatedparties

Relatedparties	Natureofthetransaction(s)	2024	2023
AVICanditssubsidiaries	MallExpensesandGoodsProcurement	16,376,625.49	13,548,194.83
CMPOanditssubsidiaries	MallExpensesandPropertyManagementFees	11,542,080.81	11,593,446.00

Salesofgoodsandrenderingofservices:

Relatedparties	Natureofthetransaction(s)	2024	2023
AVICanditssubsidiaries	Salesofgoodsandrenderingofservices	46,244,991.78	60,505,031.39
CMPOanditssubsidiaries	SSalesofgoodsandPropertyManagementFees	2,917,960.60	3,363,663.82

(b)LeasesTheCompanyaslessor:

Thelessee	Typeofassets	2024	2023
CMPOanditssubsidiaries	Buildings	1,666,400.02	1,811,657.16
AVICanditssubsidiaries	Buildings	1,637,357.56	2,018,678.62

TheCompanyaslessee:

Thelessor	Typeofassets	2024
Thelessor	Typeofassets	Variableleasepaymentsnotincludedinleaseliabilities	Leasepaymentforcurrentperiod	Interestexpenseofleaseliabilities	Increaseinright-of-useassets
CMPOand	Building	2,692.68	485,331.20	11,649.16	-100,148.57

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Thelessor	Typeofassets	2024
Thelessor	Typeofassets	Variableleasepaymentsnotincludedinleaseliabilities	Leasepaymentforcurrentperiod	Interestexpenseofleaseliabilities	Increaseinright-of-useassets
itssubsidiaries	s
AVICanditssubsidiaries	Buildings		162,868.56	1,894.34	-157,702.74

(Continued)

Thelessor	Typeofassets	2023
Thelessor	Typeofassets	Variableleasepaymentsnotincludedinleaseliabilities	Leasepaymentforcurrentperiod	Interestexpenseofleaseliabilities	Increaseinright-of-useassets
CMPOanditssubsidiaries	Buildings	59,899.04	501,788.87	6,776.94	489,781.90
AVICanditssubsidiaries	Buildings		323,382.81	9,642.03

(c)Keymanagementpersonnelcompensation

Items	2024	2023
Keymanagementpersonnelcompensation	14,048,100.00	14,232,500.00

(d)OtherrelatedpartytransactionsThedepositbalanceofourcompanyheldatAVICFinanceCompanyasat31December2024amountedtoRMB498,616,224.42,ofwhichthedepositinterestreceivedduringtheyeartotaledRMB755,020.47.

11.6ReceivablesandPayableswithRelatedParties(a)Receivables

Items	Relatedparties	31December2024		31December2023
Items	Relatedparties	Bookbalance	Baddebtprovision	Bookbalance	Baddebtprovision
Notesreceivable	AVICanditssubsidiaries	508,273.49		1,084,525.41	44,609.30
Accountsreceivable	AVICanditssubsidiaries	2,894,425.51	281,416.75	6,528,150.44	280,698.32
Accountsreceivable	CMPOanditssubsidiaries			183,123.05	9,156.15
Otherreceivables	AVICanditssubsidiaries	924,947.00	47,070.35	841,403.00	43,495.15

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Items	Relatedparties	31December2024		31December2023
Items	Relatedparties	Bookbalance	Baddebtprovision	Bookbalance	Baddebtprovision
Otherreceivables	CMPOanditssubsidiaries	56,000.00	2,800.00	143,990.00	7,199.50

(b)Payables

Items	Relatedparties	31December2024	31December2023
Otherpayables	AVICanditssubsidiaries	358,280.00	2,186,756.74
Otherpayables	CMPOanditssubsidiaries	1,066,456.79	1,023,487.21
Accountspayable	AVICanditssubsidiaries		391.96
Accountspayable	CMPOanditssubsidiaries		32,992.35
Receiptsinadvance	AVICanditssubsidiaries	7,500.00	132,975.48

12.SHARE-BASEDPAYMENTS

12.1Equity-settledShare-basedPayment

Methodofdeterminingfairvalueofequityinstrumentongrantdate	Closepriceofshareongrantdate
Evidencetodeterminethenumberofexercisableequityinstrument	Termofemployeeservice,statusoftargetcompletion,andpersonalperformanceassessment
Reasonsforsignificantdifferencebetweencurrentperiodestimationandpriorperiodestimation	Nil
Accumulatedamountchargedtocapitalreserveforequitysettledshare-basedpayment	29,604,718.40

12.2Expensesincurredfromshare-basedpaymentinthereportingperiod

Categoryofparticipant	Expensesonequitysettledshare-basedpayment	Expensesoncashsettledshare-basedpayment
SomeoftheCompany'sdirectors,supervisors,seniorexecutives,andkeypersonnel	1,695,434.85

13.COMMITMENTSANDCONTINGENCIES

13.1SignificantCommitmentsAsofthebalancesheetdate,thesignificantexternalcommitmentsoftheCompanyincludeleasecontractsthathavebeensignedandareinprogressorareabouttobeexecuted,alongwiththeirfinancialimpacts.Fordetailedinformation,pleaserefertoNote5.25LeaseLiabilitiesandNote5.52Leases.Exceptforthecommitmentsmentionedabove,asof31December2024,theCompanyhasnoothersignificantcommitmentsthatneedtobedisclosed.

13.2Contingencies

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Asat31December2024,theCompanyhasnosignificantcontingenciesneedtobedisclosed.

14.EVENTSAFTERTHEREPORTINGPERIOD

14.1ProfitDistribution

Theproposedprofitordividenddistributionreferstotheprofitordividendthathasbeenreviewed,approved,andannouncedforpayment.

Inaccordancewiththeresolutionsatthe5thMeetingofthe11thBoardofDirectorsheldon12March2025,theCompanywilldistributecashdividendsofRMB4(taxincluded)per10sharetoallshareholdersfromtheundistributedprofits,basedonthetotalnumberofshareseligibleforprofitdistributionfortheyearend31December2024.Nostockdividendswillbedistributed,norwilltherebeanyconversionofcapitalreservesintosharecapital.

Note:Theprofitdistributionplanaboveshallbeimplementedafterbeingreviewedandapprovedbythegeneralmeetingofshareholders.

14.2Others(a)On12March2025,upontheapprovaloftheresolutionspassedatthe5thMeetingofthe11thBoardofDirectors,theCompanyproposedtoapplyforthefinancingfacilitiesnotmorethanRMB1.2billionin2025fromthebankinginstitutionsthroughvariousmethodsofcredit,guarantee,andmortgage,ect.TheproposalforthetotalfinancingfacilitiesfrombanksisstillpendingapprovalbytheCompany'sgeneralmeetingofshareholders.(b)On12March2025,upontheapprovaloftheresolutionspassedatthe5thMeetingofthe11thBoardofDirectors,theCompanyproposedtoapplyforaguaranteedloanonbehalfofitswholly-ownedsubsidiaryfrombanksin2025,withanactualutilizationlimitnotmorethanRMB300million.ThiscreditlineisincludedwithintheCompany'sactualutilizationlimitofRMB1.2billionforbankloansappliedin2025.TheproposalfortheaforementionedguaranteelimitisstillpendingapprovalbytheCompany'sgeneralmeetingofshareholders.Asat12March2025,theCompanyhavenotothereventsafterthereportingperiodneedtobedisclosed.

15.OTHERSIGNIFICANTMATTERS

15.1SegmentInformationTheCompanyidentifiesoperatingsegmentsaccordingtoitsinternalorganizationstructure,managementrequirementsandinternalreportingsystems.ThenthereportablesegmentsaretobedeterminedbasedontheCompany’soperatingsegments:

(a)itsbusinessactivitiesareengagedtogeneraterevenueandincurexpenses;(b)itsoperatingresultsareregularlyreviewedbytheCompany’smanagementtomakedecisionsonresourcesallocationandperformanceassessment;(c)itsfinancialconditions,operatingresults,cashflowandrelatedaccountinginformationare

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

availabletotheCompany.TheCompanydeterminesthereportingsegmentbasedontheoperatingsegment,andtheoperatingsegmentthatmeetsanyofthefollowingconditionsisdeterminedasthereportingsegment:

(a)Thesegmentincomeoftheoperatingsegmentaccountsfor10.00%ormoreoftotalincomeofallsegments;(b)Theabsoluteamountofprofits(losses)ofthesegmentaccountfor10.00%ormoreofthehigheroftheabsoluteamountoftotalprofitsoftheprofitingsegmentandtheabsoluteamountoftotallossesoftheunprofitablesegment.TheCompany’sbusinessissimple.Thebusinessmainlyinvolvesmanufacturingandsalesofwatch.Themanagementconsidersthebusinessasawholeinimplementingmanagementandassessingitsperformance.Asaresult,nosegmentinformationisdisclosedinthisfinancialstatement.

15.2OthersAsat31December2024,theCompanydoesnothaveothersignificantmattersthatrequiretodisclose.

16.NOTESTOTHEMAINITEMSOFTHEFINANCIALSTATEMENTSOFTHEPARENTCOMPANY

16.1AccountsReceivable(a)Accountsreceivablebyaging

Aging	31December2024	31December2023
Withinoneyear	6,238,972.29	1,875,782.07
1-2years	238,812.42	23,346.03
2-3years	319.04
Subtotal	6,478,103.75	1,899,128.10
Less:provisionforbaddebt	1,846,113.37	76,211.49
Total	4,631,990.38	1,822,916.61

(b)Accountsreceivablebybaddebtprovisionmethod

Category	31December2024
	Bookbalance		Provisionforbaddebt		Carryingamount
	Amount	Proportion(%)	Amount	Provisionratio(%)
Provisionforbaddebtrecognised	1,631,798.6	25.19	1,631,798.66	100.00

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Category	31December2024
	Bookbalance		Provisionforbaddebt		Carryingamount
	Amount	Proportion(%)	Amount	Provisionratio(%)	Carryingamount
individually	6
Provisionforbaddebtrecognisedbygroups	4,846,305.09	74.81	214,314.71	4.42	4,631,990.38
Including:Group1	4,041,736.34	62.39	214,314.71	5.30	3,827,421.63
ReceivablefromRelatedpartyinscopeofconsolidation	804,568.75	12.42			804,568.75
Total	6,478,103.75	100.00	1,846,113.37	28.50	4,631,990.38

(Continued)

Category	31December2023
	Bookbalance		Provisionforbaddebt		Carryingamount
	Amount	Proportion(%)	Amount	Provisionratio(%)	Carryingamount
Provisionforbaddebtrecognisedindividually
Provisionforbaddebtrecognisedbygroups	1,899,128.10	100.00	76,211.49	4.01	1,822,916.61
Including:Group1	1,898,159.02	99.95	76,211.49	4.02	1,821,947.53
ReceivablefromRelatedpartyinscopeofconsolidation	969.08	0.05			969.08
Total	1,899,128.10	100.00	76,211.49	4.01	1,822,916.61

Detailedexplanationofprovisionforbaddebt:

(i)Asat31December2024,accountsreceivablewithbaddebtprovisionrecognisedindividually

Name	31December2024
Name	Bookbalance	Provisionforbaddebt	Provisionratio(%)	Reasonforprovision
Othercustomers	1,631,798.66	1,631,798.66	100.00	Expectedtobeirrecoverable

(ii)Asat31December2024,accountsreceivablewithbaddebtprovisionrecognisedbygroup

Aging	31December2024			31December2023
Aging	Accountsreceivable	Provisionforbaddebt	Provisionratio(%)	Accountsreceivable	Provisionforbaddebt	Provisionratio(%)
Within	3,802,604.87	190,114.42	5.00	1,874,812.99	73,876.89	3.94

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Aging	31December2024			31December2023
Aging	Accountsreceivable	Provisionforbaddebt	Provisionratio(%)	Accountsreceivable	Provisionforbaddebt	Provisionratio(%)
oneyear
1-2years	238,812.42	23,881.24	10.00	23,346.03	2,334.60	10.00
2-3years	319.05	319.05	100.00
Total	4,041,736.34	214,314.71	5.30	1,898,159.02	76,211.49	4.02

(c)Changesofprovisionforbaddebtduringthereportingperiod

Category	31December2023	Changesduringthereportingperiod				31December2024
Category	31December2023	Provision	Recoveryorreversal	Eliminationorwrite-off	Others	31December2024
Provisionforbaddebtrecognisedindividually		1,631,798.66				1,631,798.66
Provisionforbaddebtrecognisedbygroups	76,211.49	138,103.22				214,314.71
Including:Group1	76,211.49	138,103.22				214,314.71
Total	76,211.49	1,769,901.88				1,846,113.37

(d)Noaccountsreceivablewrittenoffduringthereportingperiod(e)Topfiveclosingbalancesbyentity

Entityname	Balanceofaccountsreceivableasat31December2024	Proportionofthebalancetothetotalaccountsreceivable(%)	Provisionforbaddebtofaccountsreceivable
Totalofthetopfiveaccountsreceivablebalancesattheendoftheperiod	4,594,642.18	70.93	1,294,445.58

16.2OtherReceivables(a)Otherreceivablesbyaging

Aging	31December2024	31December2023
Withinoneyear	659,558,728.69	696,320,073.42
1-2years	14,177.51	9,531.90
2-3years	9,531.90
Over3years	40,050.00	40,050.00
Subtotal	659,622,488.10	696,369,655.32
Less:provisionforbaddebt	56,619.62	41,235.47
Total	659,565,868.48	696,328,419.85

(b)Otherreceivablesbynature

Nature

31December2024

31December2023

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Nature	31December2024	31December2023
Relatedpartyinscopeofconsolidation	658,724,812.91	696,041,965.52
Depositandguaranteereceivable	119,550.00	49,581.90
Others	778,125.19	278,107.90
Subtotal	659,622,488.10	696,369,655.32
Less:provisionforbaddebt	56,619.62	41,235.47
Total	659,565,868.48	696,328,419.85

(c)OtherreceivablesbybaddebtprovisionmethodA.Asat31December2024,provisionforbaddebtrecognisedbasedonthreestagesmodel

Stages	Bookbalance	Provisionforbaddebt	Carryingamount
Stage1	659,622,488.10	56,619.62	659,565,868.48

Asat31December2024,provisionforbaddebtatstage1:

Category	Bookbalance	Provisionratio(%)	Provisionforbaddebt	Carryingamount
Provisionforbaddebtrecognisedindividually
Provisionforbaddebtrecognisedbygroups	659,622,488.10	0.01	56,619.62	659,565,868.48
Including:Depositandguaranteereceivable	119,550.00	36.83	44,025.00	75,525.00
Relatedpartyinscopeofconsolidation	658,724,812.91			658,724,812.91
Others	778,125.19	1.62	12,594.62	765,530.57
Total	659,622,488.10		56,619.62	659,565,868.48

B.Asat31December2023,provisionforbaddebtrecognisedbasedonthreestagesmodel

Stages	Bookbalance	Provisionforbaddebt	Carryingamount
Stage1	696,369,655.32	41,235.47	696,328,419.85

Asat31December2023,provisionforbaddebtatstage1:

Category	Bookbalance	Provisionratio(%)	Provisionforbaddebt	Carryingamount
Provisionforbaddebtrecognisedindividually
Provisionforbaddebtrecognisedbygroups	696,369,655.32	0.01	41,235.47	696,328,419.85
Including:Depositandguaranteereceivable	49,581.90	81.74	40,526.60	9,055.30
Relatedpartyinscopeofconsolidation	696,041,965.52			696,041,965.52
Others	278,107.90	0.25	708.87	277,399.03

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Category	Bookbalance	Provisionratio(%)	Provisionforbaddebt	Carryingamount
Total	696,369,655.32		41,235.47	696,328,419.85

Basisofprovisionforbaddebtduringthereportingperiod:

Fordetailsofrecognitioncriteriaandexplanationforprovisionofbaddebtbygroups,pleaserefertoNotes3.11(d)Changesofprovisionforbaddebtduringthereportingperiod

Category	31December2023	Changesduringthereportingperiod				31December2024
Category	31December2023	Provision	Recoveryorreversal	Eliminationorwrite-off	Others	31December2024
Provisionforbaddebtrecognisedbygroups	41,235.47	15,384.15				56,619.62

(e)Nootherreceivableswrittenoffduringthereportingperiod(f)Topfiveclosingbalancesbyentity

Entityname	Balanceasat31December2024	Proportionofthebalancetothetotalotherreceivables(%)	Provisionforbaddebt
Totalofthetopfiveotherreceivablesattheendoftheperiod.	655,724,812.91	99.42

16.3Long-termEquityInvestments

Items	31December2024			31December2023
Items	Bookbalance	Provisionforimpairment	Carryingamount	Bookbalance	Provisionforimpairment	Carryingamount
Subsidiaries	1,592,543,885.91		1,592,543,885.91	1,581,179,108.81		1,581,179,108.81
Associates	50,907,036.84		50,907,036.84	51,862,607.30		51,862,607.30
Total	1,643,450,922.75		1,643,450,922.75	1,633,041,716.11		1,633,041,716.11

(a)Investmentsinsubsidiaries

Investees	31December2023	Increaseduringthereportingperiod	Decreaseduringthereportingperiod	31December2024	Provisionforimpairmentduringthereportingperiod	Provisionforimpairmentat31December2024
ShenzhenHARMONYWorldWatchCenterCo.,Ltd.	609,295,490.83	596,482.79		609,891,973.62
ShenzhenHarmonyE-commerceCo.,Ltd.	11,684,484.39			11,684,484.39
ShenzhenFIYTAPrecisionTechnologyCo.,Ltd.	182,044,461.20	246,373.11		182,290,834.31
ShenzhenFIYTATechnologyDevelopmentCo.,Ltd.	51,062,891.67	97,250.00		51,160,141.67
FIYTA(HongKong)Ltd.	137,737,520.00			137,737,520.00

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Investees	31December2023	Increaseduringthereportingperiod	Decreaseduringthereportingperiod	31December2024	Provisionforimpairmentduringthereportingperiod	Provisionforimpairmentat31December2024
Temporal(Shenzhen)Co.,Ltd.	5,000,000.00			5,000,000.00
FIYTASalesCo.,Ltd.	456,992,456.17	304,726.96		457,297,183.13
LiaoningHengdaruiCommercial&TradeCo.,Ltd.	36,867,843.96			36,867,843.96
EmileChoureitTiming(Shenzhen)Ltd.	80,493,960.59	119,944.24		80,613,904.83
HARMONYWorldWatchCenter(Hainan)Co.,Ltd.	10,000,000.00			10,000,000.00
ShenzhenXunhangPrecisionTechnologyCo.,Ltd.		10,000,000.00		10,000,000.00
Total	1,581,179,108.81	11,364,777.10		1,592,543,885.91

(b)Investmentsinassociates

Investees	31December2023	Changesduringthereportingperiod
Investees	31December2023	Increaseduringthereportingperiod	Decreaseduringthereportingperiod	Gains/(losses)oninvestmentsundertheequitymethod	Adjustmentsofothercomprehensiveincome	Changesinotherequity
ShanghaiWatchCo.,Ltd.	51,862,607.30			-955,570.46

(Continued)

Investees	Changesduringthereportingperiod			31December2024	Provisionforimpairmentat31December2024
	Declarationofcashdividendsordistributionofprofit	Provisionforimpairment	Others
Investees				50,907,036.84

16.4RevenueandCostofSales

Items	2024		2023
Items	Revenue	Costsofsales	Revenue	Costsofsales
Principalactivities	180,681,781.85	56,887,861.74	177,350,230.18	49,729,440.87
Otheractivities	3,858,500.75		3,524,696.56
Total	184,540,282.60	56,887,861.74	180,874,926.74	49,729,440.87

16.5InvestmentIncome

Items	2024	2023
Investmentincomefromlong-termequityinvestmentsunderequitymethod	288,278,232.76	198,000,000.00
Investmentincomefromlong-termequityinvestmentsundercostmethod	-955,570.46	-5,819,479.60

FIYTAPrecisionTechnologyCo.,Ltd.Notestothefinancialstatements

Items	2024	2023
Total	287,322,662.30	192,180,520.40

17.SUPPLEMENTARYINFORMATION

17.1Detailsofcurrentnon-recurringprofitorloss

Items	2024
Gains/(losses)ondisposalofnon-currentassets(includingthewritten-offportionofprovisionsforassetimpairment)	2,367,816.60
Governmentgrants(exceptforgovernmentgrantswhicharecloselyrelatedtotheordinarycourseofbusinessoftheCompany,incompliancewithnationalpoliciesandregulations,grantedinaccordancewiththedeterminedstandards;andinfluencetheprofitandlossonanongoingbasis)chargedtogainsorlossesfortheperiod	5,480,540.76
Non-financialbusiness’sgainsorlossesfromfairvaluechangearisingfromfinancialassetsandfinancialliabilitiesheldandgainsorlossesfromdisposaloffinancialassetsandfinancialliabilities,otherthaneffectivevalueprotectionhedgesrelatingtotheCompany’sordinarycourseofbusiness	524,315.57
Reversalofprovisionforimpairmentofindividuallytestedreceivables	3,753,262.84
Othernon-operatingincome/expensesexceptforitemsmentionedabove	2,834,587.38
Otherprofit/(loss)itemsthatmeetthedefinitionofnon-recurringprofitorloss
Totalnon-recurringprofit/(loss)	14,960,523.15
Less:Incometaxeffect	3,338,626.84
Netnon-recurringprofit/(loss)	11,621,896.31
Less:netnon-recurringprofit/(loss)attributabletonon-controllinginterest
Netnon-recurringprofit/(loss)attributabletoordinaryshareholders	11,621,896.31

17.2ReturnonNetAssetsandEarningsPerShare(‘EPS’)(a)2024

Profitforthereportingperiod	Weightedaveragereturnonnetassets(%)	EPS
Profitforthereportingperiod	Weightedaveragereturnonnetassets(%)	Basic	Diluted
Netprofitattributabletoordinaryshareholders	6.55	0.5385	0.5378
Netprofitattributabletoordinaryshareholdersafternon-recurringprofitorlosses	6.21	0.5100	0.5093

(b)2023

Profitforthereportingperiod	Weightedaveragereturnonnetassets(%)	EPS
Profitforthereportingperiod	Weightedaveragereturnonnetassets(%)	Basic	Diluted
Netprofitattributabletoordinaryshareholders	10.28	0.8082	0.8075
Netprofitattributabletoordinaryshareholdersafternon-recurringprofitorlosses	9.77	0.7685	0.7678

FIYTAPrecisionTechnologyCo.,Ltd.

BoardofDirectors

14March2025

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