FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
FIYTA Precision Technology Co., Ltd.
August 21, 2026
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Section I Important Notice, Table of Contents and Definitions
The Board of Directors, Directors, and Senior Executives of the
Company guarantee that the contents of this Interim Report are true,
accurate, and complete, contain no false representations, misleading
statements, or material omissions, and accept individual and joint
legal liability.
Zhou Jinqun, the person in charge of the Company, Song
Yaoming, the Chief Financial Officer, and Jiang Haiming, the Head of
Accounting Department (Accounting Supervisor), hereby declare that
they guarantee the truthfulness, accuracy, and completeness of the
financial report in this Interim Report.
All Directors attended the Board meeting at which this Interim
Report was considered.
The forward-looking statements in this Interim Report concerning
future plans, development strategies, etc. do not constitute any
substantive commitment by the Company to investors. Investors are
advised to be aware of the investment risks.
The risk factors that the Company may face are described in detail
in this report. Please refer to the content on the risks facing the
Company and the corresponding countermeasures in Section III
Management Discussion and Analysis.
The Company does not plan to distribute cash dividends, issue
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
bonus shares, or convert capital reserve into share capital for the
reporting period.
This report is prepared in both Chinese and English. In the event
of any discrepancy in the interpretation of this report, the Chinese
version shall prevail.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Table of Contents
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Documents Available for Reference
I. Financial statements signed and stamped by the Legal Representative, Chief Financial Officer, and Head of
Accounting Department.
II. Originals of all company documents and public announcements disclosed on media designated by the CSRC
during the reporting period.
III. The 2026 Interim Report (Full Text) signed by the Legal Representative.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Definitions
Defined Term Refers to Definition
The Company, Company, FIYTA Refers to FIYTA Precision Technology Co., Ltd.
AVIC Refers to Aviation Industry Corporation of China, Ltd.
AVIC Kechuang Refers to AVIC Science and Technology Innovation Co., Ltd.
Shentian Technology Holding Refers to Shentian Technology Holding (Shenzhen) Co., Ltd.
AVIC Finance Refers to AVIC Finance Co., Ltd.
Hanhang Electromechanical Refers to Hanzhong Hanhang Electromechanical Co., Ltd.
Changkong Gear Refers to Shaanxi Changkong Gear Co., Ltd.
The reporting period, reporting period Refers to January 1, 2026 to June 30, 2026
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Section II Company Profile and Financial Highlights
I. Company Profile
Stock Abbreviation FIYTA, FIYTA B Stock Code 000026, 200026
Stock abbreviation before
None
change (if any)
Stock Exchange for Listing Shenzhen Stock Exchange
Chinese Name of the Company FIYTA Precision Technology Co., Ltd.
Chinese Abbreviation of the
FIYTA
Company (if any)
English Name of the Company
FIYTA Precision Technology Co., Ltd.
(if any)
English Abbreviation of the
FIYTA
Company (if any)
Legal Representative of the
Zhou Jinqun
Company
II. Contact Persons and Contact Information
Board Secretary Securities Affairs Representative
Name Song Yaoming Xiong Yaojia
Contact 20th Floor, FIYTA Technology Building, Gaoxin 20th Floor, FIYTA Technology Building, Gaoxin
Address South 1st Avenue, Nanshan District, Shenzhen South 1st Avenue, Nanshan District, Shenzhen
Telephone 0755-86013669 0755-86013669
Fax 0755-83348369 0755-83348369
Email investor@fiyta.com.cn investor@fiyta.com.cn
III. Other Information
The registered address, office address, postal code, website, email address, etc. of the Company remained
unchanged during the reporting period. For details, please refer to the 2025 Annual Report.
Stock exchange website for disclosing the
http://www.szse.cn
Interim Report
Media names and websites for disclosing Securities Times, Hong Kong Commercial Daily, and Cninfo
the Interim Report (www.cninfo.com.cn)
Place where the Company's annual
Management Department of the Company (Board Office)
reports are kept for inspection
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Whether other relevant information changed during the reporting period
Not applicable
IV. Key Accounting Data and Financial Highlights
Whether the Company needs to retrospectively adjust or restate accounting data of previous years
No
Increase/decrease of the
The Same Period of
The Reporting Period reporting period over the
Last Year
same period of last year
Operating revenue (RMB) 1,840,480,340.48 1,784,131,937.23 3.16%
Net profit attributable to shareholders
of the listed company (RMB)
Net profit attributable to shareholders
of the listed company after deducting 96,839,220.48 78,377,262.19 23.56%
non-recurring profit or loss (RMB)
Net cash flows from operating
activities (RMB)
Basic earnings per share
(RMB/share)
Diluted earnings per share
(RMB/share)
Weighted average return on equity
(ROE)
Increase/decrease at the
End of the Reporting end of the reporting period
End of Last Year
Period compared with the end of
last year
Total assets (RMB) 3,731,488,593.54 3,733,401,610.34 -0.05%
Net assets attributable to
shareholders of the listed company 3,379,593,262.55 3,336,540,162.45 1.29%
(RMB)
V. Differences in Accounting Data Under Domestic and Foreign Accounting
Standards
IFRS and CAS
Not applicable
foreign accounting standards and CAS
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
VI. Non-recurring Profit or Loss Items and Amounts
Unit: RMB
Item Amount Description
Gains and losses on disposal of non-
current assets (including write-off of 474,063.48
accrued asset impairment provisions)
Government grants recognized in
current profit or loss (excluding those
closely related to the Company's
normal operating business,
complying with national policies and 1,916,497.10
regulations, enjoyed in accordance
with established standards, and
having a continuing impact on the
Company's profit or loss)
Fair value change gains and losses
arising from holding financial assets
and financial liabilities by non-
financial enterprises and gains and
losses from disposal of financial 394,557.22
assets and financial liabilities, except
for effective hedging activities related
to the Company's normal business
operations
Reversal of impairment provision for
receivables tested for impairment 1,390,273.53
individually
Other non-operating income and
expenses other than the above items
Less: Income tax effect 763,108.21
Total 3,665,149.93
Specific circumstances of other profit or loss items that meet the definition of non-recurring profit or loss:
Not applicable
Explanation of defining non-recurring profit or loss items listed in "Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Securities to the Public — Non-recurring Profit or Loss" as recurring profit or loss
items
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Section III Management Discussion and Analysis
I. Principal Businesses of the Company During the Reporting Period
(I) Principal Business Activities
The Company ’ s founding and development are rooted in aviation precision technology and materials science.
Guided by the mission of “ carrying forward the spirit of ‘ aviation serving the nation’ and creating a quality life,” the
Company has dedicated itself to the horology industry for many years. It has established a core business structure
characterized by the synergy between its proprietary watch brands and comprehensive luxury watch services. The
Company is committed to becoming a leader in China’s watch industry while promoting aviation culture and Chinese
culture. In recent years, leveraging its precision technology and industrial expertise, and adhering to the principles of
“ technology homology, industrial synergy, and value alignment, ” the Company has strategically cultivated emerging
businesses in precision technology and actively promoted technological innovation and business transformation.
The Company has continuously built its capabilities in professional watchmaking and brand operations,
establishing a full industry chain covering research and development, design, manufacturing, and sales. It owns
proprietary watch brands such as “ FIYTA ” and “ Emile Chouriet, ” as well as the licensed brand “ Beijing, ” covering
market segments ranging from mid-to-high-end and mass-market to fashion. The core brand “FIYTA” is positioned on
the integration of “ aviation precision + oriental aesthetics, ” adhering to the application of aviation technology and
materials while incorporating oriental aesthetic design concepts to build a differentiated national brand.
To capitalize on opportunities in the domestic luxury watch market, the Company launched “ Harmony ” a
comprehensive service channel for luxury timepieces. Harmony specializes in the distribution and servicing of world-
renowned watches and has established close partnerships with numerous high-end and mainstream luxury watch
brands. Committed to becoming “ the premier comprehensive service provider for luxury watches, ” Harmony has
become one of the leading high-end professional watch retail chains in China, distinguished by its solid operational
management, customer service capabilities, and best practices adopted from leading international brand operations.
To seize opportunities in emerging industries, the Company has increased investments in precision technology
capabilities. It has gradually developed comprehensive capabilities in the design, development, and manufacturing of
precision components. While consolidating its existing businesses in lasers and optical communications, the Company
is strategically targeting key sectors such as robotics to accelerate the development of its emerging business portfolio.
(II) Industry Overview
In the first half of 2026, China ’s total retail sales of consumer goods increased by 1.3% year-on-year, with the
share of service consumption continuing to rise and structural divergence in consumption upgrades becoming more
pronounced. The domestic watch consumption industry, in which the Company operates, remained under pressure
due to weak consumer demand. According to data from the Federation of the Swiss Watch Industry, the total value of
Swiss watch exports to mainland China decreased by 5.0% year-on-year from January to June.
Meanwhile, the high-tech manufacturing sector — toward which the Company is transforming — has maintained
robust growth. According to the National Bureau of Statistics, the value-added output of large-scale high-tech
manufacturing enterprises increased by 13.3% year-on-year in the first half of the year. The rapid development of
artificial intelligence-related industries has driven up demand across industrial chains such as robot reducers, with the
output of robot reducers surging by 57.3% year-on-year during the January–June period.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(I) End-to-End Brand Operation and Management Capabilities Across the Entire Industrial Chain
The Company possesses fully integrated operational management capabilities spanning R&D, design,
manufacturing, sales, and service. Through resource integration and business synergy, it continuously reinforces the
differentiated brand identity and market competitiveness of its core proprietary brand, "FIYTA". During the reporting
period, the "FIYTA" brand was awarded the title of "Pioneer Brand" for FY2026 by Tmall and named "Consumers'
Favorite Brand of 2025" by JD.com.
(II) Omnichannel Refined Operational Management Capabilities
The Company boasts refined channel operational capabilities. By pursuing high-quality development of offline
channels and steadily advancing online-offline integration, channel structure has been continuously optimized, and
operational efficiency has steadily improved. It has established a multi-dimensional channel network covering both
online and offline channels across domestic and overseas markets.
(III) Core Technical Capabilities in Precision Technology
As a National Demonstration Enterprise for Technological Innovation, the Company hosts a National Corporate
Technology Center and a National Industrial Design Center. Leveraging its expertise in watch movements and
aerospace timing equipment, it has developed micron-level ultra-precision manufacturing processes and possesses
strong capabilities in small-size, high-precision component manufacturing and solution provision. The Company has
also achieved independent R&D and mass production capabilities for medium- and small-modulus gears and precision
reducers. Its core products are primarily applied in robotics, lasers, optical communications, aerospace, and other
advanced industrial sectors.
(IV) High-Efficiency Digitalized Operational Management Capabilities
The Company possesses diversified digital retail systems and digital management platforms that empower
operations and employees. By continuously deepening digital applications across management, manufacturing, sales,
and customer service, it fosters cross-business synergies and enhances operational efficiency.
(V)Professional Talent Pool Building Capabilities
Based on the philosophy of "Value Creation", the Company continuously invests in workforce building, maintaining
a sound talent selection, cultivation, and promotion system, as well as a professional and stable talent pool. Through
innovative incentive mechanisms and diverse incentive tools, it has fostered numerous industry-leading professionals
in core areas such as design, R&D, and manufacturing.
Overview
In the first half of 2026, situated in a pivotal phase of transformation and upgrading, the Company focused on
talent development, precision manufacturing, and digitalization, continuously enhanced organizational capabilities,
deepened its core watch business, and accelerated strategic layout in emerging industries. During the reporting period,
the Company achieved operating revenue of RMB 1,840.4803 million, up 3.16% year-on-year; total profit was RMB
risk control, and steadily improved operational efficiency, with inventory balance decreasing by RMB 265.4821 million
from the end of last year.
During the reporting period, the Company's primary operational initiatives were as follows:
(I)Consolidating the fundamentals of the watch business, optimizing business structure, and enhancing
operating quality and efficiency
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
"FIYTA" defined its brand positioning as "Aviation Precision + Oriental Aesthetics", continually cultivating brand
differentiation. It optimized product structure, enhanced innovative product design, launched new product series such
as "Chinese Ginkgo" and "Oriental Beauty", and steadily advanced product and brand rejuvenation. It optimized store
portfolio, focusing on increasing store productivity of flagship offline stores, strictly managing ROI online, and
strengthening refined operations. It executed integrated marketing campaigns, hosting nationwide dual-theme
roadshows featuring Aviation Precision and Oriental Aesthetics, celebrity events, and Ru porcelain cultural crossover
IP collaborations, enhancing omnichannel brand influence.
"Harmony" focused deeply on top-tier brands and prime channels, practiced lean operations, and tightened
inventory risk control, achieving substantial improvements in inventory turnover and asset efficiency. By deepening
customer service, the Company achieved a marked increase in repeat purchase volume from existing customers,
further strengthening customer loyalty.
(II) Accelerating the Development of Emerging Businesses, Increasing Key Investments, and Building
Core Capabilities
Building on its existing precision technology business, the Company is focusing on emerging sectors such as
robotics, pursuing a premium, high-impact strategy. It is establishing a core talent pipeline and dedicated product lines
for precision manufacturing and robotics to solidify its capability foundation. By strengthening internal and external
resource coordination, the Company is prioritizing the development of core products and key customer accounts to
secure an early-mover advantage in its business layout. As of the disclosure date, the Company has completed the
leveraging Changkong Gear’s technological expertise and product strengths in precision gears and precision reducers
to accelerate the development of its robotics business.
(III) Comprehensively Strengthening Organizational Capabilities, Building a High-Caliber Talent Pool, and
Enhancing Management Effectiveness
The Company adheres to a talent- and management-driven approach to improve business quality and efficiency.
Aligning with its business development strategy, it has refined its systems for talent acquisition, integration, and
development, bringing in specialized professionals for key roles in R&D, production, process engineering, and
marketing. The Company has improved its closed-loop management mechanism covering strategic formulation,
decomposition, and performance evaluation to ensure the effective execution of strategic objectives. It is advancing
integrated control and functional support functions while deepening the integration of business and finance operations.
Additionally, digital transformation initiatives in production and operations are being implemented to enhance overall
operational efficiency.
Year-on-Year Changes in Major Financial Data
Unit: RMB
The Reporting The Same Period YoY
Reason for change
Period of Last Year change
Operating revenue 1,840,480,340.48 1,784,131,937.23 3.16% Not applicable
Operating costs 1,196,202,821.77 1,149,808,611.57 4.03% Not applicable
Selling expenses 360,654,255.33 392,808,032.65 -8.19% Not applicable
Administrative expenses 95,354,788.74 89,971,510.01 5.98% Not applicable
Mainly due to the decrease in
interest on borrowings and
Financial expenses 3,035,440.88 5,640,080.29 -46.18% the impact of foreign
exchange gains during the
reporting period.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Mainly due to the increase in
Income tax expense 31,160,140.78 23,115,165.73 34.80% total profit during the
reporting period.
R&D investment 40,717,396.64 33,087,871.33 23.06% Not applicable
Mainly due to the increase in
sales receipts and the
Net cash flows from operating
activities
purchases during the
reporting period.
Mainly due to the payment for
equity acquisition and the
Net cash flows from investing
-261,963,522.13 -40,364,724.39 -548.99% impact of time deposit
activities
activities during the reporting
period.
Mainly due to the year-on-
Net cash flows from financing year decrease in cash
-94,859,977.01 -191,150,697.48 50.37%
activities dividend distribution during
the reporting period.
Net increase in cash and Mainly due to the combined
cash equivalents effect of the above factors.
Significant changes in the Company's profit composition or profit sources during the reporting period
Not applicable
Composition of Operating Revenue
Unit: RMB
The Reporting Period The Same Period of Last Year
Proportion of Proportion of YoY
Amount Operating Amount Operating change
Revenue Revenue
Total operating
revenue
By Industry
Watch business 1,691,696,415.16 91.92% 1,659,610,629.02 93.02% 1.93%
Precision
technology 79,085,973.27 4.30% 60,465,539.30 3.39% 30.80%
business
Leasing business 52,916,447.44 2.88% 57,835,071.51 3.24% -8.50%
Other 16,781,504.61 0.90% 6,220,697.40 0.35% 169.77%
By Product
Watch brand
business
Comprehensive
luxury watch 1,439,244,294.54 78.20% 1,344,501,516.85 75.36% 7.05%
service business
Precision
technology 79,085,973.27 4.30% 60,465,539.30 3.39% 30.80%
business
Leasing business 52,916,447.44 2.88% 57,835,071.51 3.24% -8.50%
Other 16,781,504.61 0.90% 6,220,697.40 0.35% 169.77%
By Region
South China 846,839,128.62 46.01% 806,381,444.29 45.20% 5.02%
Northwest China 255,622,443.68 13.89% 248,784,340.56 13.94% 2.75%
North China 67,720,684.71 3.68% 51,669,800.71 2.90% 31.06%
East China 152,531,098.84 8.29% 228,872,072.10 12.83% -33.36%
Northeast China 181,784,914.65 9.88% 162,388,661.36 9.10% 11.94%
Southwest China 335,982,069.98 18.25% 286,035,618.21 16.03% 17.46%
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Industries, products, or regions accounting for over 10% of the Company's operating revenue or operating profit
Unit: RMB
Gross YoY change in YoY change
Operating YoY change in
Operating costs profit operating in gross
revenue operating costs
margin revenue profit margin
By Industry
Watch
business
Leasing
business
By Product
Watch brand
business
Comprehensive
luxury watch
service
business
Leasing
business
By Region
South China 846,839,128.62 546,188,552.47 35.50% 5.02% 7.77% -1.65%
Northwest
China
North China 67,720,684.71 41,875,442.33 38.16% 31.06% 40.74% -4.25%
East China 152,531,098.84 94,900,877.97 37.78% -33.36% -38.28% 4.97%
Northeast
China
Southwest
China
If the statistical scope of the Company's principal business data was adjusted during the reporting period, the
Company's principal business data for the most recent period adjusted according to the scope at the end of the
reporting period
Not applicable
Not applicable
V. Analysis of Assets and Liabilities
Unit: RMB
End of the Reporting Period End of last year Change Significant
Proportion of Proportion of in change
Amount Amount proportion Description
total assets total assets
Cash and
Not
cash 657,780,338.81 17.63% 631,239,039.65 16.91% 0.72%
applicable
equivalents
Accounts Not
receivable applicable
Contract 0.00 0.00% 0.00 0.00% 0.00% Not
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
End of the Reporting Period End of last year Change Significant
Proportion of Proportion of in change
Amount Amount proportion Description
total assets total assets
assets applicable
Not
Inventories 1,462,500,282.14 39.19% 1,727,982,404.66 46.28% -7.09%
applicable
Investment Not
properties applicable
Long-term
Not
equity 46,672,153.60 1.25% 46,436,556.86 1.24% 0.01%
applicable
investments
Not
Fixed assets 337,417,287.88 9.04% 343,353,998.15 9.20% -0.16%
applicable
Construction Not
in progress applicable
Right-of-use Not
assets applicable
Short-term Not
borrowings applicable
Contract Not
liabilities applicable
Long-term Not
borrowings applicable
Lease Not
liabilities applicable
Not applicable
Not applicable
Not applicable
VI. Investment Analysis
Investment amount in the reporting Investment amount in the same
Change rate
period (RMB) period of last year (RMB)
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Not applicable
(1) Securities Investments
Not applicable
(2) Derivative Investments
Not applicable
Not applicable
VII. Material Asset and Equity Sales
Not applicable
Not applicable
VIII. Analysis of Major Subsidiaries and Investees
Major subsidiaries and investees with an impact of 10% or more on the Company's net profit
Unit: RMB
Company Company Principal Registere Total Operating Operating
Net assets Net profit
name type business d capital assets revenue profit
Purchase
Shenzhen
and sale of
Harmony
watches
World Subsidiar 600,000,0 1,510,748, 1,036,048, 1,401,274, 145,504,0 108,609,6
and spare
Watch y 00.00 441.66 068.31 553.21 94.51 08.49
parts;
Center
maintenanc
Co., Ltd.
e services.
Manufactur
Shenzhen
ing and
FIYTA - -
Subsidiar production 180,000,0 290,181,7 210,416,9 117,988,2
Precision 16,327,03 11,538,90
y of watches 00.00 12.22 98.96 63.07
Technolog 0.04 6.53
and spare
y Co., Ltd.
parts.
Shenzhen Production
- -
FIYTA Subsidiar and 50,000,00 197,918,3 167,690,9 76,052,65
Technolog y processing 0.00 81.84 88.10 4.71
y of precision
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Developm component
ent Co., s.
Ltd.
Sale of
FIYTA
Subsidiar watches 450,000,0 428,846,1 322,416,7 162,992,4 3,886,286. 2,966,844.
Sales Co.,
y and spare 00.00 56.44 03.75 57.28 13 34
Ltd.
parts.
Acquisition and Disposal of Subsidiaries During the Reporting Period
Not applicable
Description of Major Subsidiaries and Investees
mainly due to the growth in luxury watch sales revenue and the reduction in period expenses during the reporting
period.
IX. Structured Entities Controlled by the Company
Not applicable
X．Risks Facing the Company and Countermeasures
Currently, the Company faces market risks arising from softened demand in the domestic traditional watch
consumer market. The Company will continue to build differentiated proprietary brands, optimize brand, product, and
channel structures, adhere to customer-oriented strategies, consolidate refined operations and customer services, and
enhance customer recognition. Concurrently, it will increase resource allocation and capability development in
emerging industries, driving strategic transformation, upgrading, and business growth.
Currently, the Company faces technological challenges across multiple fields, including traditional watchmaking,
emerging industries, and digital applications. In response, the Company will increase investment in core technical
talent and digitalization, strengthening frontier technological breakthroughs and practical applications in proprietary
movement R&D, key component manufacturing, specialized precision manufacturing lines, and digital factory
construction, thereby driving technological innovation and business growth.
XI. Formulation and Implementation of Market Value Management System and
Valuation Enhancement Plan
Whether the Company has formulated a market value management system.
Yes
Whether the Company has disclosed a valuation enhancement plan.
No
The 13th meeting of the 11th Board of Directors held on January 29, 2026 reviewed and approved the "Proposal
on Formulating the Company's
". To strengthen market value management,
promote the enhancement of investment value, and boost investor returns, the Company formulated the "Market Value
Management System" in accordance with regulations such as the "Regulatory Guidelines for Listed Companies No. 10
— Market Value Management". For details, please refer to the full text of the system disclosed on Cninfo on January
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
XII. Implementation of the Action Plan for "Dual Enhancement of Quality and
Return"
Whether the Company has disclosed the announcement on the Action Plan for "Dual Enhancement of Quality and
Return".
No
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Section IV Corporate Governance, Environmental and Social
Responsibilities
I. Changes in Directors and Senior Executives of the Company
Position
Name Type Date Reason
Held
Huang Electe Elected as a non-independent director of the 11th Board of
Director May 20, 2026
Kai d Directors by the 2025 Annual General Meeting.
Chen Independe Electe Elected as an independent director of the 11th Board of
July 10, 2026
Han nt Director d Directors by the First Extraordinary General Meeting of 2026.
Deputy
Zhang Appoin Appointed as Deputy General Manager at the 17th meeting of
General June 22, 2026
Haohai ted the 11th Board of Directors.
Manager
Song Deputy
Appoin Appointed as Deputy General Manager at the 17th meeting of
Yongk General June 22, 2026
ted the 11th Board of Directors.
ang Manager
Yuan General Appoin Appointed as General Counsel at the 17th meeting of the 11th
June 22, 2026
Tianbo Counsel ted Board of Directors.
Director
and Resign Resigned from the positions of Director of the 11th Board of
Pan Bo June 22, 2026
General ed Directors and General Manager due to work reasons.
Manager
Li Resign Resigned from the position of Director of the 11th Board of
Director March 12, 2026
Peiyin ed Directors due to work reasons.
Wang
Independe Resign Resigned from the position of Director of the 11th Board of
Sushe July 10, 2026
nt Director ed Directors due to work reasons.
ng
Lu
General Resign Resigned from the position of General Counsel due to work
Wanju June 22, 2026
Counsel ed reasons.
n
Tang Deputy
Resign Resigned from the position of Deputy General Manager due to
Haiyua General March 27, 2026
ed personal reasons.
n Manager
II. Profit Distribution and Conversion of Capital Reserve into Share Capital During
the Reporting Period
The Company does not plan to distribute cash dividends, issue bonus shares, or convert capital reserve into share
capital for the reporting period.
III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or
Other Employee Incentive Measures
Not applicable
IV. Environmental Information Disclosure
Whether the listed company and its major subsidiaries are included in the list of enterprises subject to mandatory
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
disclosure of environmental information
No
V. Social Responsibility
The Company has actively fulfilled its corporate social responsibilities over the years. For details on recent
developments, please refer to the "2025 Environmental, Social and Governance (ESG) Report" disclosed on Cninfo
(www.cninfo.com.cn) on March 14, 2026.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Section V Significant Events
I. Commitments Completed During the Reporting Period and Overdue
Commitments as of the End of the Reporting Period by De Facto Controllers,
Shareholders, Related Parties, Acquirers, the Company, and Other Related Parties
Not applicable
II. Non-Operating Capital Occupation by Controlling Shareholders and Other
Related Parties
Not applicable
III. Non-Compliant External Guarantees
Not applicable
IV. Appointment and Dismissal of Accounting Firm
Whether the interim financial report has been audited
No
V. Explanations of the Board of Directors on the "Non-Standard Audit Report"
Issued by the Accounting Firm for the Reporting Period
Not applicable
VI. Explanations of the Board of Directors on Matters Related to the "Non-Standard
Audit Report" of the Previous Year
Not applicable
VII. Matters Related to Bankruptcy Reorganization
Not applicable
VIII. Litigation Matters
Material Litigation and Arbitration
Not applicable
Other Litigation Matters
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
IX. Penalties and Rectifications
Not applicable
X. Integrity Status of the Company and Its Controlling Shareholder and De Facto
Controller
Not applicable
XI. Material Related-Party Transactions
Not applicable
Gai
Apprai Settle
Carryin n/lo
Type sed ment
g ss
Relat of Conten value Transf meth
amount on
ed- relat t of of er od of Discl
Pricing principle of tran
Relate party ed- related transfe price relate osur Disclosu
of related-party transfer sact
d Party relati party -party rred (RMB d- e re index
transaction red ion
onshi trans transa assets 10,000 party date
assets (RM
p actio ction (RMB ) trans
(RMB B
n 10,000 actio
) n
The transaction
The
AVIC price was
Compa
is the determined
ny https://w
Com based on the
intends ww.cninf
pany' appraised net
to o.com.c
s de asset value of
acquir n/new/di
facto Changkong
e a sclosure/
contr Gear as of the
oller, evaluation
equity ate=szs
and benchmark date
AVIC, interes e&orgId
Hanh of December 31,
Hanha Equit t in =gssz00
ang 2025 (RMB April
ng y Chang 27,279. 33,969 32,479 00026&s
Electr 339.6904 Cash 0 30,
Electro acqui kong 79 .04 .04 tockCod
omec million), as set 2026
mecha sition Gear e=00002
hanic out in the Asset
nical held 6&annou
al is Valuation
jointly ncement
a Report (Zhong
by Id=1225
contr Tong Hua Ping
AVIC 262620&
olled Bao Zi [2026]
and announc
subsi No. 020289)
Hanha ementTi
diary issued by
ng me=202
of Beijing
Electro 6-04-30
AVIC Zhongtonghua
mecha
. Assets
nical.
Appraisal Co.,
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Ltd. and filed
with the state-
owned assets
supervision
authority. After
deducting the
Shaanxi
Provincial state-
owned exclusive
capital reserve
of RMB 14.90
million, the
valuation of
Changkong
Gear was fixed
at RMB
million.
Reasons for significant
differences between transfer
Not applicable.
price and book value or
appraised value (if any)
This transaction constitutes a business combination under common control and will
Impact on the Company's
not change the accounting treatment of Changkong Gear. Upon completion of the
Operating Results and Financial
transaction, Changkong Gear becomes a wholly-owned subsidiary of the Company
Position
and is included in the consolidated financial statements.
Performance fulfillment during
the reporting period if
Not applicable.
performance commitments are
involved
Note: As of June 30, 2026, the acquisition of 100% equity in Changkong Gear had not been completed. On July
the industrial and commercial registration of changes for the equity transfer and obtained the "Business License"
issued by the Administrative Approval Service Bureau of Nanzheng District, Hanzhong City. For details, please refer to
the "Announcement on the Completion of Industrial and Commercial Registration of Changes for the Acquisition of
(www.cninfo.com.cn) on July 15, 2026.
Not applicable
Not applicable
Deposit Business
Related- Maximum Beginning Amount incurred in current Ending
Deposit
party daily balance period balance
Related Party interest rate
relationshi deposit limit (RMB Total Total (RMB
range
p (RMB 10,000) deposit withdrawal 10,000)
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
current current
period period
(RMB (RMB
Under
control of
AVIC Finance the same 100,000 55,255 286,888 279,573 62,570
ultimate
party
Loan Business
Amount incurred in current
period
Related- Beginning Total Ending
Loan credit Loan Total loan
party balance repayment balance
Related Party line (RMB interest rate amount in
relationshi (RMB amount in (RMB
p 10,000) current 10,000)
period
period
(RMB
(RMB
Under
control of Not higher
AVIC
the same 80,000 than the 1- 0 0 0 0
Finance
ultimate year LPR
party
Credit Facility or Other Financial Services
During the reporting period, the maximum daily balance of deposits and loans between the Company and AVIC
Finance did not exceed the limits specified in the Financial Services Agreement. No credit facilities or other financial
business occurred. Concurrently, the Company issues an interim "Risk Continuous Assessment Report on Related-
Party Deposits and Loans with AVIC Finance Co., Ltd.".
Not applicable
The 14th meeting of the 11th Board of Directors held on March 12, 2026 and the 16th meeting of the 11th Board
of Directors held on April 29, 2026 respectively reviewed and approved the "Proposal on the Expected Daily Related-
Party Transactions for 2026" and the "Proposal on Increasing the Expected Daily Related-Party Transactions for 2026".
The above proposals were approved at the 2025 Annual General Meeting held on May 20, 2026. During the reporting
period, the cumulative transaction amounts of various related-party transactions associated with daily operations were
within the estimated annual limits.
Relevant Inquiries on Websites Disclosing Temporary Reports on Significant Related-Party Transactions
Disclosure Date of
Website for Disclosing Temporary
Title of Temporary Announcement Temporary
Announcement
Announcement
Announcement on Resolutions of the 14th Meeting of
March 14, 2026 http://www.cninfo.com.cn/
the 11th Board of Directors 2026-002
Announcement on Expected Daily Related-Party
March 14, 2026 http://www.cninfo.com.cn/
Transactions for 2026 2026-009
Announcement on Resolutions of the 16th Meeting of
April 30, 2026 http://www.cninfo.com.cn/
the 11th Board of Directors 2026-016
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Announcement on Increasing the Expected Daily
April 30, 2026 http://www.cninfo.com.cn/
Related-Party Transactions for 2026 2026-018
Announcement on Resolutions of 2025 Annual General
May 21, 2026 http://www.cninfo.com.cn/
Meeting 2026-024
XII. Material Contracts and Their Performance
(1) Custody
Not applicable
(2) Contracting
Not applicable
(3) Leasing
Not applicable
Unit: RMB 10,000
External Guarantees of the Company and Its Subsidiaries (Excluding Guarantees for Subsidiaries)
Disclos
ure
date of Whethe
Name Counter Whethe
announ Actual Actual r it is a
of Collater - Guarant r
cement Guarant occurre guarant Guarant related-
guarant al (if guarant ee fulfilled
on ee limit nce ee ee type party
eed any) ee (if period complet
guarant date amount guarant
party any) ely
ee ee
credit
line
Not applicable
Total approved Total actual
external guarantee amount of external
limit during the 0 guarantees during 0
reporting period the reporting
(A1) period (A2)
Total actual
Total approved
balance of external
external guarantee
guarantees at the
limit at the end of 0 0
end of the
the reporting
reporting period
period (A3)
(A4)
Guarantees Provided by the Company to Subsidiaries
Name Disclos Actual Actual Counter Whethe Whethe
Guarant Guarant Collater Guarant
of ure occurre guarant - r r it is a
ee limit ee type al (if ee
guarant date of nce ee guarant fulfilled related-
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
eed announ date amount any) ee (if period complet party
party cement any) ely guarant
on ee
guarant
ee
credit
line
Counter
Shenzh
en Joint
guarant
Harmon and
March Decem ee
y World several One
Watch liability year
Center guarant
guarant
Co., ee
eed
Ltd.
party
Total actual
Total approved
guarantee amount
guarantee limit for
for subsidiaries
subsidiaries during 30,000 0
during the
the reporting
reporting period
period (B1)
(B2)
Total approved Total actual
guarantee limit for guarantee balance
subsidiaries at the for subsidiaries at
end of the the end of the
reporting period reporting period
(B3) (B4)
Guarantees Provided by Subsidiaries to Subsidiaries
Disclos
ure
date of Whethe
Name Counter Whethe
announ Actual Actual r it is a
of Collater - Guarant r
cement Guarant occurre guarant Guarant related-
guarant al (if guarant ee fulfilled
on ee limit nce ee ee type party
eed any) ee (if period complet
guarant date amount guarant
party any) ely
ee ee
credit
line
Not applicable
Total actual
Total approved
guarantee amount
guarantee limit for
for subsidiaries
subsidiaries during 0 0
during the
the reporting
reporting period
period (C1)
(C2)
Total approved Total actual
guarantee limit for guarantee balance
subsidiaries at the for subsidiaries at
end of the the end of the
reporting period reporting period
(C3) (C4)
Total Guarantee Amount of the Company (Total of the First Three Items)
Total approved Total actual
guarantee limit guarantee amount
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
during the during the
reporting period reporting period
(A1+B1+C1) (A2+B2+C2)
Total approved Total actual
guarantee limit at guarantee balance
the end of the 30,000 at the end of the 9,000
reporting period reporting period
(A3+B3+C3) (A4+B4+C4)
Proportion of total actual guarantee
amount (A4+B4+C4) to the Company's 2.66%
net assets
Including:
Balance of guarantees provided to
shareholders, de facto controller, and 0
related parties (D)
Balance of debt guarantees provided
directly or indirectly to guaranteed
entities with an asset-liability ratio
exceeding 70% (E)
Amount of total guarantees exceeding
Total amount of the above three
guarantee items (D+E+F)
Explanations on guarantee liabilities
incurred during the reporting period or
evidence indicating possible joint and Not applicable
several repayment liabilities for
unexpired guarantee contracts (if any)
Explanation of non-compliant external
Not applicable
guarantees (if any)
Specific explanations on combined guarantees
Not applicable
Not applicable
Not applicable
XIII. Registration Form of Research, Communication, Interviews and Other
Activities During the Reporting Period
Main Topics Basic
Receptio Reception Receptio Type of Discussed and Information
Visitors
n Date Location n Method Visitors Materials Index of
Provided Research
Conferenc Changan Fund Management Co., Company https://irm.cni
January On-site Instituti
e Room, Ltd., Orient Securities Co., Ltd., operations, nfo.com.cn/irc
FIYTA Cinda Australasia Fund development s/search?key
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Technolo Management Co., Ltd., Essence plans, word=000026
gy Fund Management Co., Ltd., First acquisition
Building Seafront Fund Management Co., project
Ltd., China Fortune Securities progress, etc.
Co., Ltd., Hongming Capital.
Company
Conferenc Guotai Haitong Securities Co.,
operations,
e Room, Ltd., East Money Securities Co., https://irm.cni
development
January FIYTA On-site Instituti Ltd., First Capital Securities Co., nfo.com.cn/irc
plans,
acquisition
gy Investment Group Co., Ltd., word=000026
project
Building Ruizhi Fund.
progress, etc.
Company
Online
operations,
communi https://irm.cni
https://ese Investors participating remotely development
March cation nfo.com.cn/irc
b.cn/1wu0 Other online in the Company's 2025 plans,
ClV7w9q Online Performance Briefing. acquisition
network word=000026
project
platform
progress, etc.
Company
Conferenc
operations,
e Room, Huisheng Fund Management Co., https://irm.cni
development
April 3, FIYTA On-site Instituti Ltd., Zhongtian Securities Co., nfo.com.cn/irc
plans,
acquisition
gy Investment Consulting Co., Ltd. word=000026
project
Building
progress, etc.
Guosen Securities Co., Ltd.,
Huachuang Securities Co., Ltd.,
Ping An Asset Management Co.,
Ltd., GF Securities Co., Ltd.
Orient Securities Co., Ltd.,
Penghua Fund Management Co.,
Ltd., Western Securities Co., Ltd.,
Huaxi Securities Co., Ltd.,
Sealand Securities Co., Ltd.,
Caitong Securities Co., Ltd.,
Zheshang Securities Co., Ltd.,
Rongtong Fund Management Co.,
Ltd., Shanxi Securities Co., Ltd.,
Company
Conferenc Tianfeng Securities Co., Ltd.,
operations,
e Room, Shenwan Hongyuan Securities https://irm.cni
development
May 28, FIYTA On-site Instituti Co., Ltd., Xinjiang Qianhai United nfo.com.cn/irc
plans,
acquisition
gy Kaiyuan Securities Asset word=000026
project
Building Management Co., Ltd., Quango
progress, etc.
Fund Management Co., Ltd.,
Shenzhen Hengbang Zhaofeng
Asset Management Co., Ltd.,
Shenzhen Gaoshengxin Private
Securities Fund Management
Co., Ltd., Shenzhen Qianrong
Private Securities Investment
Fund Co., Ltd., Shenzhen
Kangruitong Investment
Management Co., Ltd.,
Guangzhou Xinmiao Private
Securities Investment Fund
Management Co., Ltd., Shenzhen
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Huaqi Capital Partnership
(Limited Partnership), Hainan
Daohe Private Equity Fund
Management Co., Ltd.
XIV. Description of Other Material Events
Not applicable
XV. Material Events of Subsidiaries
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Section VI Changes in Shares and Shareholder Information
I. Changes in Shares
Unit: Share
Before the change Increase/decrease (+, -) After the change
Issu Conver
anc Bon sion of
Proporti e us capital Proportio
Quantity Other Subtotal Quantity
on New sha reserv n
shar res e into
es shares
I.
Restricted 622,340 0.15% 0 0 0 122,914 122,914 745,254 0.18%
shares
State-
owned
shares
State-
owned
legal
person
shares
domestic 622,340 0.15% 0 0 0 122,914 122,914 745,254 0.18%
shares
Includ
ing:
Domestic
legal
person
shares
Dome
stic
natural 622,340 0.15% 0 0 0 122,914 122,914 745,254 0.18%
person
shares
Foreign 0 0.00% 0 0 0 0 0 0 0.00%
shares
Includ
ing:
Foreign
legal
person
shares
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Forei
gn natural
person
shares
II.
Unrestrict 405,141,667 99.85% 0 0 0 -122,914 -122,914 405,018,753 99.82%
ed shares
ordinary
shares (A
shares)
Domestic
ally listed
foreign
shares (B
shares)
Overseas
listed 0 0.00% 0 0 0 0 0 0 0.00%
foreign
shares
III. Total
number of 405,764,007 0 0 0 0 0 405,764,007 100.00%
%
shares
Reason for share changes
During the reporting period, due to adjustments in transferable quotas for outgoing executives, restricted shares
increased by 122,914 shares (with a corresponding decrease in unrestricted shares), while the Company's total share
capital remained unchanged.
Approval of share changes
Not applicable
Transfer of share changes
Not applicable
Implementation progress of share repurchase
Not applicable
Progress of reducing repurchased shares via centralized bidding
Not applicable
Impact of share changes on basic and diluted earnings per share, net assets per share attributable to ordinary
shareholders, and other financial indicators for the most recent year and the latest period
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Other information deemed necessary by the Company or required by securities regulatory authorities
Not applicable
Unit: Share
Increased in
Beginning of Unlocked in
current End of period
period current period
Name of period Number of Reason for Date of
Number of Number of
shareholder Number of restricted lock-up unlocking
restricted restricted
restricted shares
shares shares
shares
Locked shares
Pan Bo 172,537 0 57,513 230,050 of outgoing Not applicable
executives
Locked shares
Lu Wanjun 120,037 0 40,013 160,050 of outgoing Not applicable
executives
Executive
Li Ming 120,067 0 0 120,067 Not applicable
locked shares
Executive
Liu Xiaoming 120,037 0 0 120,037 Not applicable
locked shares
Locked shares
Tang Haiyuan 80,662 0 26,888 107,550 of outgoing Not applicable
executives
Unlocked in
accordance
with relevant
Locked shares
laws and
Hu Jing 9,000 1,500 0 7,500 of outgoing
regulations
supervisors
governing
supervisor
locked shares.
Total 622,340 1,500 124,414 745,254 -- --
II. Issuance and Listing of Securities
Not applicable
III. Number of Shareholders and Shareholding Status
Unit: Share
Total number of Total number of preferred shareholders
ordinary shareholders with restored voting rights at the end of
at the end of the the reporting period (if any) (see Note
reporting period 8)
Shareholding of shareholders holding 5% or more shares or the top 10 shareholders (excluding shares lent via
refinancing)
Nature Shareho Number of Increase/d Number of Pledged, marked, or
Number of
Name of of lding shares held ecrease restricted frozen status
unrestricted
shareholder shareh percenta at the end of during the shares
shares held Share status Quanti
older ge the reporting held
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
reporting period ty
period
Shentian
State-
Technology
owned 162,977,32 Not
Holding 40.17% 162,977,327 0 0 0
legal 7 applicable
(Shenzhen)
person
Co., Ltd.
Domest
ic Not
# Wu Jilin 4.73% 19,189,124 2,337,198 0 19,189,124 0
natural applicable
person
Qianhai Life
Insurance
Co., Ltd. - Not
Other 3.99% 16,183,970 -2,400 0 16,183,970 0
Dividend applicable
Insurance
Product
Bank of
China
Limited -
Huashang
Not
Selected Other 0.96% 3,906,000 2,641,700 0 3,906,000 0
applicable
Return Mixed
Securities
Investment
Fund
Hong Kong
Securities Foreign
Not
Clearing legal 0.78% 3,144,933 1,581,432 0 3,144,933 0
applicable
Company person
Limited
China
Merchants
Bank Co.,
Ltd. -
Huashang Not
Other 0.68% 2,763,400 1,814,600 0 2,763,400 0
Quality Value applicable
Mixed
Securities
Investment
Fund
Domest
ic Not
# Zhu Rui 0.59% 2,382,300 285,700 0 2,382,300 0
natural applicable
person
Bank of
China
Limited -
Huashang
Not
Vision Value Other 0.55% 2,236,500 1,301,200 0 2,236,500 0
applicable
Mixed
Securities
Investment
Fund
CITIC
Not
Securities Other 0.53% 2,152,000 1,278,600 0 2,152,000 0
applicable
Co., Ltd. -
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Huatai-
PineBridge
CSI Central
SOE
Dividend
Exchange-
Traded Fund
(ETF)
Domest
ic Not
# Wang Xing 0.53% 2,141,400 321,100 0 2,141,400 0
natural applicable
person
Circumstances where
strategic investors or
general legal persons
became top 10
Not applicable
shareholders due to
placement of new
shares (if any) (see
Note 3)
Explanation of related-
party relationships or The Company is not aware of whether there are related-party relationships or concerted
concerted action among action among the above 10 shareholders.
the above shareholders
Explanation of voting
Shareholder Shentian Technology Holding authorized a representative to exercise voting
rights entrusted by/to,
rights on its behalf representing 162,977,327 shares at the 2025 Annual General Meeting.
or waived by the above
For voting results, please refer to relevant announcements published on Cninfo.
shareholders
Special explanation on
the existence of a
repurchase special
Not applicable
account among the top
(see Note 11)
Shareholding of top 10 unrestricted shareholders (excluding shares lent via refinancing and executive locked shares)
Number of Share class
unrestricted shares
Name of shareholder
held at the end of the Share class Quantity
reporting period
RMB ordinary
Shentian Technology Holding (Shenzhen) Co., Ltd. 162,977,327 162,977,327
shares
RMB ordinary
# Wu Jilin 19,189,124 19,189,124
shares
Qianhai Life Insurance Co., Ltd. - Dividend Insurance RMB ordinary
Product shares
Bank of China Limited - Huashang Selected Return Mixed RMB ordinary
Securities Investment Fund shares
RMB ordinary
Hong Kong Securities Clearing Company Limited 3,144,933 3,144,933
shares
China Merchants Bank Co., Ltd. - Huashang Quality Value RMB ordinary
Mixed Securities Investment Fund shares
RMB ordinary
# Zhu Rui 2,382,300 2,382,300
shares
Bank of China Limited - Huashang Vision Value Mixed RMB ordinary
Securities Investment Fund shares
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
CITIC Securities Co., Ltd. - Huatai-PineBridge CSI Central RMB ordinary
SOE Dividend Exchange-Traded Fund (ETF) shares
RMB ordinary
# Wang Xing 2,141,400 2,141,400
shares
Explanation of related-
party relationships or
concerted action among
the top 10 unrestricted
The Company is not aware of whether there are related-party relationships or concerted
shareholders and
action among the above 10 shareholders.
between the top 10
unrestricted
shareholders and the
top 10 shareholders
account and 14,575,822 shares through a client credit collateral securities account at China
Explanation of top 10
CICC Wealth Management Securities Co., Ltd., totaling 19,189,124 shares;
ordinary shareholders
participating in margin
and 2,379,700 shares through a client credit collateral securities account at First Capital
financing and securities
Securities Co., Ltd., totaling 2,382,300 shares;
lending business (if
any)
account and 310,000 shares through a client credit collateral securities account at China
Merchants Securities Co., Ltd., totaling 2,141,400 shares.
Share lending via refinancing business by shareholders holding 5% or more shares, top 10 shareholders, and top 10
unrestricted circulating shareholders
Not applicable
Changes in top 10 shareholders and top 10 unrestricted circulating shareholders compared to the prior period due to
share lending/return via refinancing
Not applicable
Whether the top 10 ordinary shareholders and top 10 unrestricted ordinary shareholders engaged in agreed
repurchase transactions during the reporting period
No
IV. Changes in Shareholding of Directors and Senior Executives
Not applicable
The shareholdings of Directors and Senior Executives remained unchanged during the reporting period. For details,
please refer to the 2025 Annual Report.
V. Changes in Controlling Shareholder or De Facto Controller
If the Company previously disclosed plans for a change in control by the de facto controller that have not been
completed, please explain the progress of the change in control.
Not applicable
Change in controlling shareholder during the reporting period
Not applicable
Change in de facto controller during the reporting period
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
VI. Preferred Shares
Not applicable
Section VII Bonds
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Section VIII Financial Report
I. Audit Report
Whether the Interim Report has been audited
No
II. Financial Statements
The unit in the notes to the financial statements is: RMB
Prepared by: FIYTA Precision Technology Co., Ltd.
June 30, 2026
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Cash and cash equivalents 657,780,338.81 631,239,039.65
Settlement reserve
Lending funds
Financial assets held for trading
Derivative financial assets
Notes receivable 15,179,652.64 13,617,187.55
Accounts receivable 264,290,477.99 249,868,540.94
Receivables financing
Prepayments 26,452,620.03 4,912,759.05
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve
Other receivables 55,463,903.88 51,040,153.19
Including: Interest receivable
Dividends receivable
Financial assets purchased under
agreements to resell
Inventories 1,462,500,282.14 1,727,982,404.66
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 138,092,496.03 66,510,872.63
Total current assets 2,619,759,771.52 2,745,170,957.67
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Non-current assets:
Loans and advances granted
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 46,672,153.60 46,436,556.86
Other equity instrument
investments
Other non-current financial assets
Investment properties 301,443,999.00 308,270,580.37
Fixed assets 337,417,287.88 343,353,998.15
Construction in progress
Productive biological assets
Oil and gas assets
Right-of-use assets 62,048,131.85 72,791,092.06
Intangible assets 30,920,347.73 31,720,744.04
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
Long-term prepaid expenses 68,950,815.87 89,174,269.50
Deferred income tax assets 93,267,447.01 90,726,063.88
Other non-current assets 171,008,639.08 5,757,347.81
Total non-current assets 1,111,728,822.02 988,230,652.67
Total assets 3,731,488,593.54 3,733,401,610.34
Current liabilities:
Short-term borrowings
Borrowings from the central bank
Placements from banks and other
financial institutions
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 68,846,072.91 94,791,440.02
Advances from customers 7,051,846.87 11,368,005.63
Contract liabilities 18,121,608.21 16,450,934.50
Financial assets sold under
agreements to repurchase
Customer deposits and deposits
from other banks
Funds received as agent of
securities trading
Funds received as agent of
securities underwriting
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Employee benefits payable 64,278,748.33 80,059,217.82
Taxes and surcharges payable 50,056,542.45 40,198,014.04
Other payables 78,195,511.10 75,141,232.27
Including: Interest payable
Dividends payable
Handling charges and
commissions payable
Reinsurance payables
Liabilities held for sale
Non-current liabilities due within
one year
Other current liabilities 1,870,242.74 2,392,725.11
Total current liabilities 336,575,858.67 377,446,061.93
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 14,736,464.18 17,892,390.31
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities 583,008.14 1,522,995.65
Other non-current liabilities
Total non-current liabilities 15,319,472.32 19,415,385.96
Total liabilities 351,895,330.99 396,861,447.89
Owners' equity:
Share capital 405,764,007.00 405,764,007.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 935,609,251.94 935,609,251.94
Less: Treasury shares
Other comprehensive income 14,994,784.98 23,665,217.37
Special reserve 3,872,012.79 3,961,169.87
Surplus reserve 275,010,401.50 275,010,401.50
General risk reserve
Undistributed profits 1,744,342,804.34 1,692,530,114.77
Total equity attributable to owners of
the parent company
Non-controlling interests
Total owners' equity 3,379,593,262.55 3,336,540,162.45
Total liabilities and owners' equity 3,731,488,593.54 3,733,401,610.34
Legal Representative: Zhou Jinqun Chief Financial Officer: Song Yaoming Head of Accounting Department:
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Jiang Haiming
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Cash and cash equivalents 547,732,738.10 457,084,217.33
Financial assets held for trading
Derivative financial assets
Notes receivable
Accounts receivable 19,832,052.07 9,983,210.72
Receivables financing
Prepayments
Other receivables 361,944,183.93 545,751,274.33
Including: Interest receivable
Dividends receivable
Inventories 8,183,772.06 35,526,848.62
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 29,608,376.75 25,674,166.66
Total current assets 967,301,122.91 1,074,019,717.66
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 1,639,216,039.51 1,638,980,442.77
Other equity instrument
investments
Other non-current financial assets
Investment properties 213,212,587.10 218,384,208.08
Fixed assets 239,695,300.64 242,887,333.30
Construction in progress
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 23,130,780.28 24,260,033.91
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Long-term prepaid expenses 12,350,444.88 12,299,699.77
Deferred income tax assets 31,026,695.78 20,283,973.50
Other non-current assets 163,831,502.68 1,989,858.55
Total non-current assets 2,322,463,350.87 2,159,085,549.88
Total assets 3,289,764,473.78 3,233,105,267.54
Current liabilities:
Short-term borrowings
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 5,905,907.39 111,122,030.74
Advances from customers 8,121,477.80 11,369,857.62
Contract liabilities
Employee benefits payable 18,189,531.94 17,665,486.91
Taxes and surcharges payable 3,584,364.38 790,242.76
Other payables 386,552,692.89 297,160,359.41
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 422,353,974.40 438,107,977.44
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 422,353,974.40 438,107,977.44
Owners' equity:
Share capital 405,764,007.00 405,764,007.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 938,999,713.64 938,999,713.64
Less: Treasury shares
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Other comprehensive income
Special reserve
Surplus reserve 275,010,401.50 275,010,401.50
Undistributed profits 1,247,636,377.24 1,175,223,167.96
Total owners' equity 2,867,410,499.38 2,794,997,290.10
Total liabilities and owners' equity 3,289,764,473.78 3,233,105,267.54
Legal Representative: Zhou Jinqun Chief Financial Officer: Song Yaoming Head of Accounting Department:
Jiang Haiming
Unit: RMB
Item First half of 2026 First half of 2025
I. Total operating revenue 1,840,480,340.48 1,784,131,937.23
Including: Operating revenue 1,840,480,340.48 1,784,131,937.23
Interest income
Premiums earned
Handling charges and
commission income
II. Total operating costs 1,714,427,144.42 1,686,829,306.89
Including: Operating costs 1,196,202,821.77 1,149,808,611.57
Interest expense
Handling charges and
commission expenses
Surrender values
Net compensation expenses
Net appropriation of
insurance contract reserve
Policy dividend expenses
Reinsurance expenses
Taxes and surcharges 18,462,441.06 15,513,201.04
Selling expenses 360,654,255.33 392,808,032.65
Administrative expenses 95,354,788.74 89,971,510.01
R&D expenses 40,717,396.64 33,087,871.33
Financial expenses 3,035,440.88 5,640,080.29
Interest expense 1,186,429.02 2,390,395.42
Interest income 1,831,836.70 1,870,950.85
Add: Other income 3,155,303.04 2,946,889.68
Investment income (loss is
indicated by "-")
Including: Investment
income from associates and joint 235,596.74 494,545.14
ventures
Gains on
derecognition of financial assets
measured at amortized cost
Foreign exchange gains (loss
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
is indicated by "-")
Net exposure hedging gains
(loss is indicated by "-")
Gains from changes in fair
value (loss is indicated by "-")
Credit impairment losses (loss
is indicated by "-")
Asset impairment losses (loss
is indicated by "-")
Gains on disposal of assets
(loss is indicated by "-")
III. Operating profit (loss is indicated
by "-")
Add: Non-operating income 653,081.03 1,204,207.92
Less: Non-operating expenses 400,214.22 219,441.69
IV. Total profit (total loss is indicated
by "-")
Less: Income tax expense 31,160,140.78 23,115,165.73
V. Net profit (net loss is indicated by
"-")
(I) Categorized by operating
continuity
operations (net loss is indicated by "- 100,504,370.41 82,445,500.03
")
operations (net loss is indicated by "-
")
(II) Categorized by ownership
attribution
shareholders of the parent company 100,504,370.41 82,445,500.03
(net loss is indicated by "-")
non-controlling interests (net loss is
indicated by "-")
VI. Other Comprehensive Income,
-8,670,432.39 9,592,491.09
Net of Tax
Net other comprehensive income
attributable to owners of the parent -8,670,432.39 9,592,491.09
company after tax
(I) Other comprehensive income
that cannot be reclassified to profit or
loss
of defined benefit plans
income that cannot be transferred to
profit or loss under the equity method
equity instrument investments
enterprise's own credit risk
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(II) Other comprehensive income
that will be reclassified to profit or -8,670,432.39 9,592,491.09
loss
income that can be transferred to
profit or loss under the equity method
debt investments
reclassified into other comprehensive
income
provisions for other debt investments
-8,670,432.39 9,592,491.09
foreign currency financial statements
Net other comprehensive income
attributable to non-controlling
interests after tax
VII. Total Comprehensive Income 91,833,938.02 92,037,991.12
Total comprehensive income
attributable to owners of the parent 91,833,938.02 92,037,991.12
company
Total comprehensive income
attributable to non-controlling
interests
VIII. Earnings Per Share:
(I) Basic earnings per share 0.2477 0.2034
(II) Diluted earnings per share 0.2477 0.2034
Legal Representative: Zhou Jinqun Chief Financial Officer: Song Yaoming Head of Accounting Department:
Jiang Haiming
Unit: RMB
Item First half of 2026 First half of 2025
I. Operating revenue 80,539,710.30 81,474,823.42
Less: Operating costs 41,246,617.92 25,511,651.20
Taxes and surcharges 4,062,559.84 3,821,053.25
Selling expenses 32,373,061.83 17,415,912.81
Administrative expenses 38,760,021.37 27,948,465.95
R&D expenses 9,168,396.13 6,543,258.58
Financial expenses -1,263,832.96 -1,776,950.85
Interest expense 66,406.39 -54,463.04
Interest income 1,384,769.95 1,566,068.25
Add: Other income 764,312.77 818,743.58
Investment income (loss is
indicated by "-")
Including: Investment
income from associates and joint
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
ventures
Gains on
derecognition of financial assets
measured at amortized cost (loss is
indicated by "-")
Net exposure hedging gains
(loss is indicated by "-")
Gains from changes in fair
value (loss is indicated by "-")
Credit impairment losses (loss
is indicated by "-")
Asset impairment losses (loss
is indicated by "-")
Gains on disposal of assets
-45,519.85
(loss is indicated by "-")
II. Operating profit (loss is indicated
by "-")
Add: Non-operating income 26,139.97 23,782.21
Less: Non-operating expenses 196,857.96 6.18
III. Total profit (total loss is indicated
by "-")
Less: Income tax expense -10,721,472.28 511,106.83
IV. Net profit (net loss is indicated by
"-")
(I) Net profit from continuing
operations (net loss is indicated by "- 121,104,890.12 2,375,126.55
")
(II) Net profit from discontinued
operations (net loss is indicated by "-
")
V. Other Comprehensive Income,
Net of Tax
(I) Other comprehensive income
that cannot be reclassified to profit or
loss
of defined benefit plans
income that cannot be transferred to
profit or loss under the equity method
equity instrument investments
enterprise's own credit risk
(II) Other comprehensive income
that will be reclassified to profit or
loss
income that can be transferred to
profit or loss under the equity method
debt investments
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
reclassified into other comprehensive
income
provisions for other debt investments
foreign currency financial statements
VI. Total Comprehensive Income 121,104,890.12 2,375,126.55
VII. Earnings Per Share:
(I) Basic earnings per share
(II) Diluted earnings per share
Legal Representative: Zhou Jinqun Chief Financial Officer: Song Yaoming Head of Accounting Department:
Jiang Haiming
Unit: RMB
Item First half of 2026 First half of 2025
I. Cash flows from operating
activities:
Cash received from sale of goods
and rendering of services
Net increase in customer deposits
and placements from other banks
Net increase in borrowings from
central bank
Net increase in placements from
other financial institutions
Cash received from premiums of
original insurance contracts
Net cash received from
reinsurance business
Net increase in policyholders'
deposits and investment funds
Cash received from interest,
handling charges, and commissions
Net increase in placements from
banks and other financial institutions
Net increase in repurchase
business funds
Net cash received from agent
securities trading
Refunds of taxes and surcharges 3,206,857.32 765,302.02
Cash received relating to other
operating activities
Subtotal of cash inflows from
operating activities
Cash paid for goods purchased
and services received
Net increase in loans and
advances to customers
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Net increase in deposits with
central bank and other banks
Cash paid for claims of original
insurance contracts
Net increase in lending funds
Cash paid for interest, handling
charges, and commissions
Cash paid for policy dividends
Cash paid to and on behalf of
employees
Payments of various taxes and
surcharges
Cash paid relating to other
operating activities
Subtotal of cash outflows from
operating activities
Net cash flows from operating
activities
II. Cash flows from investing
activities:
Cash received from recovery of
investments
Cash received from investment
income
Net cash received from disposal of
fixed assets, intangible assets, and 32,260.84 134,782.34
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received relating to other
investing activities
Subtotal of cash inflows from
investing activities
Cash paid for acquisition and
construction of fixed assets,
intangible assets, and other long-
term assets
Cash paid for investments
Net increase in pledged loans
Net cash paid for acquisition of
subsidiaries and other business units
Cash paid relating to other
investing activities
Subtotal of cash outflows from
investing activities
Net cash flows from investing
-261,963,522.13 -40,364,724.39
activities
III. Cash flows from financing
activities:
Cash received from capital
contributions
Including: Cash received by
subsidiaries from capital
contributions of non-controlling
shareholders
Cash received from borrowings 11,000,000.00 140,000,000.00
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Cash received relating to other
financing activities
Subtotal of cash inflows from
financing activities
Cash paid for debt repayments 11,000,000.00 120,000,000.00
Cash paid for distribution of
dividends or profits and payment of 48,724,606.91 165,355,261.79
interest
Including: Dividends and profits
paid by subsidiaries to non-
controlling shareholders
Cash paid relating to other
financing activities
Subtotal of cash outflows from
financing activities
Net cash flows from financing
-94,859,977.01 -191,150,697.48
activities
IV. Effect of Exchange Rate Changes
-607,822.10 377,371.28
on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
Equivalents
Add: Beginning balance of cash
and cash equivalents
VI. Ending Balance of Cash and
Cash Equivalents
Legal Representative: Zhou Jinqun Chief Financial Officer: Song Yaoming Head of Accounting Department:
Jiang Haiming
Unit: RMB
Item First half of 2026 First half of 2025
I. Cash flows from operating
activities:
Cash received from sale of goods
and rendering of services
Refunds of taxes and surcharges 13,830.30
Cash received relating to other
operating activities
Subtotal of cash inflows from
operating activities
Cash paid for goods purchased
and services received
Cash paid to and on behalf of
employees
Payments of various taxes and
surcharges
Cash paid relating to other
operating activities
Subtotal of cash outflows from
operating activities
Net cash flows from operating
activities
II. Cash flows from investing
activities:
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Cash received from recovery of
investments
Cash received from investment
income
Net cash received from disposal of
fixed assets, intangible assets, and 12,635.00
other long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received relating to other
investing activities
Subtotal of cash inflows from
investing activities
Cash paid for acquisition and
construction of fixed assets,
intangible assets, and other long-
term assets
Cash paid for investments
Net cash paid for acquisition of
subsidiaries and other business units
Cash paid relating to other
investing activities
Subtotal of cash outflows from
investing activities
Net cash flows from investing
-15,326,455.67 -5,249,498.62
activities
III. Cash flows from financing
activities:
Cash received from capital
contributions
Cash received from borrowings 11,000,000.00 140,000,000.00
Cash received relating to other
financing activities
Subtotal of cash inflows from
financing activities
Cash paid for debt repayments 11,000,000.00 120,000,000.00
Cash paid for distribution of
dividends or profits and payment of 48,724,606.91 165,355,261.79
interest
Cash paid relating to other
financing activities
Subtotal of cash outflows from
financing activities
Net cash flows from financing
-48,724,606.91 -145,355,261.79
activities
IV. Effect of Exchange Rate Changes
-64,196.35 -14,118.87
on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
Equivalents
Add: Beginning balance of cash
and cash equivalents
VI. Ending Balance of Cash and
Cash Equivalents
Legal Representative: Zhou Jinqun Chief Financial Officer: Song Yaoming Head of Accounting Department:
Jiang Haiming
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Amount in Current Period
Unit: RMB
First half of 2026
Equity attributable to owners of the parent company
Other equity Oth Non
Les - Tot
instruments er Gen Und al
Cap s: Spe Sur cont
Item Sha com eral istri rolli own
Pref Per ital Tre cial plus
re pre risk but Oth Sub ng ers'
erre pet res asu res res
capi Oth hen res ed er total inte equi
d ual erv ry erv erv
tal er sive erv prof rest
sha bon e sha e e ty
inco e its s
res ds res
me
I. Ending 3,9 92, 36, 36,
,76 ,60 665 ,01
balance of 61, 530 540 540
the previous 169 ,11 ,16 ,16
year .87 4.7 2.4 2.4
Add:
Changes in
accounting
policies
Co
rrection of
prior-period
errors
Ot
her
II. 405 935 23, 275
Beginning ,76 ,60 665 ,01
balance of 4,0 9,2 ,21 0,4
the current 07. 51. 7.3 01.
.87 4.7 2.4 2.4
year 00 94 7 50
III.
Increase/de
crease - 51, 43, 43,
amount in 8,6 812 053 053
current 70, ,68 ,10 ,10
period 432 9.5 0.1 0.1
.08
(decrease is .39 7 0 0
indicated by
"-")
- 100 91, 91,
(I) Total 8,6 ,50 833 833
comprehen 70, 4,3 ,93 ,93
sive income 432 70. 8.0 8.0
.39 41 2 2
(II) Capital
contributed
and
reduced by
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
owners
shares
contributed
by owners
contributed
by holders
of other
equity
instruments
of share-
based
payments
recognized
in owners'
equity
- - -
(III) Profit 691 691 691
distribution ,68 ,68 ,68
Appropriatio
n to surplus
reserve
Appropriatio
n to general
risk reserve
Distribution 48, 48, 48,
to owners 691 691 691
(or ,68 ,68 ,68
shareholder 0.8 0.8 0.8
s) 4 4 4
(IV) Internal
carry-over
of owners'
equity
reserve
converted
into capital
(or share
capital)
reserve
converted
into capital
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(or share
capital)
reserve
making up
for losses
in defined
benefit
plans
carried
forward to
retained
earnings
comprehen
sive income
carried
forward to
retained
earnings
- - -
(V) Special 89, 89, 89,
reserve 157 157 157
.08 .08 .08
Appropriatio ,69 ,69 ,69
n during the 1.3 1.3 1.3
period 0 0 0
- - -
during the ,84 ,84 ,84
period 8.3 8.3 8.3
(VI) Other
IV. Ending 3,8 44, 79, 79,
,76 ,60 994 ,01
balance of 72, 342 593 593
current 012 ,80 ,26 ,26
period .79 4.3 2.5 2.5
Amount in Previous Year
Unit: RMB
First half of 2025
Equity attributable to owners of the parent company Non
Other equity Les Oth - Tot
Gen Und cont al
instruments Cap s: er Spe Sur
Item Sha eral istri rolli own
ital Tre com cial plus
re Pref Per risk but Oth Sub ng ers'
res asu pre res res
capi erre pet Oth res ed er total inte equi
erv ry hen erv erv
tal d ual er erv prof rest ty
e sha sive e e
sha bon e its s
res inco
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
res ds me
I. Ending 4,3 67, 91, 91,
,76 ,33 815 686 ,01
balance of 40, 517 843 843
the previous 162 ,88 ,20 ,20
year .76 7.9 0.6 0.6
Add:
Changes in
accounting
policies
Co
rrection of
prior-period
errors
Ot
her
II. 405 936 12, 15, 275
Beginning ,76 ,33 815 686 ,01
balance of 4,0 9,5 ,55 ,79 0,4
the current 07. 03. 6.8 4.6 01.
.76 7.9 0.6 0.6
year 00 60 1 2 50
III.
Increase/de
- - - -
crease -
amount in 730
current ,25
,55 491 210 ,10 ,51 ,51
period 1.6
(decrease is 6
indicated by
"-")
(I) Total 445 037 037
comprehen ,50 ,99 ,99
sive income 0.0 1.1 1.1
.09
(II) Capital - 12, 12,
contributed 730 085 085
and ,25 ,30 ,30
,55
reduced by 1.6 5.1 5.1
owners 6 5 5
shares
contributed
by owners
contributed
by holders
of other
equity
instruments
of share- 730 12, 085 085
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
based ,25 815 ,30 ,30
payments 1.6 ,55 5.1 5.1
recognized 6 6.8 5 5
in owners' 1
equity
- - -
(III) Profit ,30 ,30 ,30
distribution 5,6 5,6 5,6
Appropriatio
n to surplus
reserve
Appropriatio
n to general
risk reserve
Distribution 162 162 162
to owners ,30 ,30 ,30
(or 5,6 5,6 5,6
shareholder 02. 02. 02.
s) 80 80 80
(IV) Internal
carry-over
of owners'
equity
reserve
converted
into capital
(or share
capital)
reserve
converted
into capital
(or share
capital)
reserve
making up
for losses
in defined
benefit
plans
carried
forward to
retained
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
earnings
comprehen
sive income
carried
forward to
retained
earnings
- - -
(V) Special 51, 51, 51,
reserve 210 210 210
.69 .69 .69
Appropriatio ,17 ,17 ,17
n during the 7.6 7.6 7.6
period 4 4 4
- - -
during the ,38 ,38 ,38
period 8.3 8.3 8.3
(VI) Other
IV. Ending 4,2 87, 33, 33,
,76 ,60 279 ,01
balance of 88, 657 609 609
current 952 ,78 ,68 ,68
period .07 5.1 3.3 3.3
Legal Representative: Zhou Jinqun Chief Financial Officer: Song Yaoming Head of Accounting Department:
Jiang Haiming
Amount in Current Period
Unit: RMB
First half of 2026
Other equity Other
instruments Less: Undis
Capit comp Speci Surpl Total
Item Share Treas tribut
Prefe Perpe al rehen al us owne
capita ury ed Other
rred tual reser sive reser reser rs'
l Other share profit
share bond ve incom ve ve equity
s s
s s e
I. Ending 1,175 2,794
balance of ,223, ,997,
the previous 167.9 290.1
year 6 0
Add:
Changes in
accounting
policies
Co
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
rrection of
prior-period
errors
Ot
her
II.
Beginning 405,7 938,9 275,0
,223, ,997,
balance of 64,00 99,71 10,40
the current 7.00 3.64 1.50
year
III.
Increase/de
crease
amount in 72,41 72,41
current 3,209 3,209
period .28 .28
(decrease is
indicated by
"-")
(I) Total 121,1 121,1
comprehen 04,89 04,89
sive income 0.12 0.12
(II) Capital
contributed
and
reduced by
owners
shares
contributed
by owners
contributed
by holders
of other
equity
instruments
of share-
based
payments
recognized
in owners'
equity
- -
(III) Profit 48,69 48,69
distribution 1,680 1,680
.84 .84
Appropriatio
n to surplus
reserve
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Distribution 48,69 48,69
to owners 1,680 1,680
(or .84 .84
shareholder
s)
(IV) Internal
carry-over
of owners'
equity
reserve
converted
into capital
(or share
capital)
reserve
converted
into capital
(or share
capital)
reserve
making up
for losses
in defined
benefit
plans
carried
forward to
retained
earnings
comprehen
sive income
carried
forward to
retained
earnings
(V) Special
reserve
Appropriatio
n during the
period
during the
period
(VI) Other
IV. Ending 405,7 938,9 275,0 1,247 2,867
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
balance of 64,00 99,71 10,40 ,636, ,410,
current 7.00 3.64 1.50 377.2 499.3
period 4 8
Amount in Previous Year
Unit: RMB
First half of 2025
Other equity Other
instruments Less: Undis
Capit comp Speci Surpl Total
Item Share Treas tribut
Prefe Perpe al rehen al us owne
capita ury ed Other
rred tual reser sive reser reser rs'
l Other share profit
share bond ve incom ve ve equity
s s
s s e
I. Ending 1,206 2,813
balance of ,072, ,249,
the previous 217.1 068.2
year 4 4
Add:
Changes in
accounting
policies
Co
rrection of
prior-period
errors
Ot
her
II.
Beginning 405,7 939,2 12,81 275,0
,072, ,249,
balance of 64,00 17,99 5,556 10,40
the current 7.00 9.41 .81 1.50
year
III.
Increase/de
crease
- - -
amount in -
current 218,2
period 85.77
.81 6.25 5.21
(decrease is
indicated by
"-")
(I) Total 2,375 2,375
comprehen ,126. ,126.
sive income 55 55
(II) Capital
contributed - 12,59
and 218,2 7,271
reduced by 85.77 .04
.81
owners
shares
contributed
by owners
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
contributed
by holders
of other
equity
instruments
of share-
based - 12,59
payments 218,2 7,271
recognized 85.77 .04
.81
in owners'
equity
- -
(III) Profit 162,3 162,3
distribution 05,60 05,60
Appropriatio
n to surplus
reserve
Distribution - -
to owners 162,3 162,3
(or 05,60 05,60
shareholder 2.80 2.80
s)
(IV) Internal
carry-over
of owners'
equity
reserve
converted
into capital
(or share
capital)
reserve
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FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
forward to
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period 9 3
Legal Representative: Zhou Jinqun Chief Financial Officer: Song Yaoming Head of Accounting Department:
Jiang Haiming
III. Basic Information of the Company
FIYTA Precision Technology Co., Ltd. (hereinafter referred to as the "Company" or "our Company") was
restructured from "Shenzhen FIYTA Timepiece Industry Company", with China National Aero-Technology Import &
Export Shenzhen Industry & Trade Center (subsequently renamed "China National Aero-Technology Shenzhen Co.,
Ltd.") as the promoter, upon approval by the General Office of Shenzhen Municipal People's Government under
document Shen Fu Ban Fu [1992] No. 1259 dated December 25, 1992. The Company was listed on the Shenzhen
Stock Exchange on June 3, 1993, and currently holds a business license with the Unified Social Credit Code of
Following years of bonus share distributions, rights issues, capitalizations of reserve, and additional share
issuances, as of June 30, 2026, the Company had an aggregate issued share capital of 405,764,007 shares, with a
registered capital of RMB 405.764007 million. Registered address: FIYTA Technology Building, Gaoxin South 1st
Avenue, Nanshan District, Shenzhen, Guangdong Province. Its parent company is Shentian Technology Holding
(Shenzhen) Co., Ltd., and its ultimate controlling party is Aviation Industry Corporation of China, Ltd.
The business nature and principal operating activities of the Company and its subsidiaries include: sale of
timepieces; manufacturing of timepieces and timing instruments; sale of timepieces and timing instruments; wholesale
of jewelry; retail of jewelry; manufacturing of smart wearable devices; sale of smart wearable devices; leasing of non-
residential real estate; professional design services; sale of household appliances; sale of satellite mobile
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
communications terminals. (Except for items subject to approval according to law, operating activities are carried out
autonomously according to law with the business license)
A total of 12 subsidiaries are included in the scope of consolidation for the current period. For details, please refer
to Note X. Interests in Other Entities. The entities included in the scope of consolidated financial statements in the
current period remained unchanged compared with the previous period.
Date of approval for issuance of financial statements: These financial statements were approved for issuance by
resolution of the Board of Directors of the Company on August 19, 2026.
IV. Basis of Preparation of Financial Statements
The Company prepares its financial statements on a going concern basis, based on transactions and events that have
actually occurred, and in accordance with the recognition and measurement requirements of the Accounting Standards
for Business Enterprises (CAS), Application Guidance, and Interpretations. In addition, the Company also discloses
relevant financial information in accordance with CSRC's "Compilation Rules for Information Disclosure by Companies
Offering Securities to the Public No. 15 — General Provisions on Financial Reports (Revised in 2023)".
The Company assessed its ability to continue as a going concern for the 12 months from the end of the reporting
period and found no events or conditions that cast significant doubt on its ability to continue as a going concern. It is
reasonable for the Company to prepare the financial statements on a going concern basis.
V. Significant Accounting Policies and Accounting Estimates
Notes on specific accounting policies and accounting estimates:
operational characteristics, primarily reflected in the methods for measuring expected credit losses on receivables
(Note V.12, Note V.13, Note V.15), inventory valuation methods (Note V.17), depreciation of investment properties,
depreciation of fixed assets, and amortization of intangible assets (Note V.23, Note V.24, Note V.29), revenue
recognition (Note V.37), etc.
based on historical experience and other factors, including reasonable expectations of future events. Material changes
in the following significant accounting estimates and key assumptions may have a material impact on the carrying
amounts of assets and liabilities in subsequent accounting years:
(1) Provision for bad debts on accounts receivable and other receivables. Management estimates the impairment
provision for accounts receivable and other receivables based on its judgment of expected credit losses. If any event
or change in circumstances indicates that the Company may not recover the relevant balances, estimates are required
to accrue provisions for accounts receivable and other receivables. If the expected figures differ from the original
estimates, the difference will affect the carrying amount of accounts receivable and other receivables, as well as the
impairment charges in the period in which the estimate changes.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(2) Estimation of inventory impairment. Inventories are measured at the lower of cost and net realizable value at
the balance sheet date. The calculation of net realizable value requires the use of assumptions and estimates. If
management revises the estimated selling prices and the costs and expenses to be incurred upon completion, it will
affect the estimate of the net realizable value of inventories, and such difference will impact the accrued inventory
write-down provision.
(3) Estimation of impairment of long-term assets. When judging whether long-term assets are impaired,
management assesses and analyzes primarily from the following aspects: 1) whether events affecting asset
impairment have occurred; 2) whether the present value of expected future cash flows from continuous use or disposal
of the assets is lower than their carrying amount; and 3) whether the significant assumptions used in the present value
of expected future cash flows are appropriate.
If relevant assumptions adopted by the Company for determining impairment—such as profitability, discount rates,
and growth rates used in the present value of future cash flows method—change, they may have a material impact on
the present value used in impairment testing and result in impairment of the Company's long-term assets.
(4) Depreciation and amortization. The Company estimates the useful lives and net residual values of investment
properties, fixed assets, and intangible assets based on the historical actual useful lives and net residual values of
assets of a similar nature and function. During the use of assets, the economic environment, technological
environment, and other circumstances in which they operate may have a significant impact on their useful lives and
estimated net residual values. If the estimated useful life and net residual value of an asset differ from the original
estimates, management will adjust them appropriately.
(5) Deferred income tax assets. Deferred income tax assets shall be recognized for all unused tax losses to the
extent that it is probable that sufficient taxable profits will be available against which the losses can be utilized. This
requires management to exercise significant judgment to estimate the timing and amount of future taxable profits,
combined with tax planning strategies, to determine the amount of deferred income tax assets to be recognized.
(6) Income tax. In normal operating activities, the ultimate tax treatment of many transactions and events involves
uncertainties. Significant judgment is required when accruing for income tax. If the final determination of these tax
matters differs from the amounts initially recorded, such difference will impact the tax amount in the period during
which such final determination is made.
The financial statements prepared by the Company comply with the requirements of the Accounting Standards for
Business Enterprises, and truly and completely reflect the financial position, operating results, changes in owners'
equity, cash flows, and other relevant information of the Company.
The accounting year of the Company is from January 1 to December 31 of the Gregorian calendar.
The normal operating cycle of the Company is one year.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
The Company and its domestic subsidiaries adopt RMB as their functional currency. FIYTA (Hong Kong) Limited, an
overseas subsidiary of the Company, determines HKD as its functional currency according to the primary economic
environment in which it operates; Montres Chouriet SA, a subsidiary of FIYTA (Hong Kong) Limited, determines CHF
as its functional currency according to the primary economic environment in which it operates. Their financial
statements are translated into RMB when preparing consolidated financial statements. The presentation currency
adopted by the Company for preparing these financial statements is RMB.
Item Materiality Criteria
Accounts receivable with material bad debt provision
Individual ending balance exceeding RMB 1 million
reversed or recovered in the current period
Material other payables aged over one year Individual ending balance exceeding RMB 1 million
Common Control
(1) Business combinations under common control
Assets and liabilities acquired by the Company in a business combination are measured at the merger date based
on their carrying amounts in the consolidated financial statements of the ultimate controlling party. Where the
accounting policies and accounting periods adopted by the combinee differ from those of the Company prior to the
merger, the accounting policies and periods are unified based on the materiality principle; that is, the carrying amounts
of the combinee's assets and liabilities are adjusted in accordance with the Company's accounting policies and
accounting periods. Any difference between the carrying amount of net assets acquired and the carrying amount of
consideration paid is adjusted against capital reserve (capital premium or share premium); if the capital reserve
(capital premium or share premium) is insufficient to offset the difference, the remaining balance is adjusted against
surplus reserve and undistributed profits sequentially.
(2) Business combinations not under common control
Identifiable assets and liabilities of the acquiree acquired by the Company in a business combination are
measured at fair value on the acquisition date. Where the accounting policies and accounting periods adopted by the
acquiree differ from those of the Company prior to the merger, the accounting policies and periods are unified based
on the materiality principle; that is, the carrying amounts of the acquiree's assets and liabilities are adjusted in
accordance with the Company's accounting policies and accounting periods. The excess of the combination cost over
the fair value of the acquiree's identifiable net assets acquired on the acquisition date is recognized as goodwill; if the
combination cost is less than the fair value of the acquiree's identifiable net assets acquired, the Company first re-
evaluates the combination cost and the fair value of the acquiree's identifiable assets and liabilities. If the cost remains
lower than the fair value of identifiable net assets acquired after review, the difference is recognized in current profit or
loss.
(3) Treatment of transaction fees in business combinations
Intermediary fees such as auditing, legal services, valuation, and consulting fees and other related administrative
expenses incurred for business combinations are recognized in profit or loss when incurred. Transaction fees for
issuing equity securities or debt securities as combination consideration are included in the initial recognition amount
of such equity or debt securities.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Statements
(1) Criteria for determining control and scope of consolidation
Control refers to the power the Company has over the investee, whereby it is exposed to, or has rights to, variable
returns from its involvement with the investee, and has the ability to use its power over the investee to affect the
amount of its returns. The definition of control contains three basic elements: first, the investor has power over the
investee; second, the investor enjoys variable returns through involvement in the investee's related activities; third, the
investor has the ability to use its power over the investee to affect the amount of its returns. When the Company's
investment in an investee meets all three elements, it indicates that the Company controls the investee.
The scope of consolidated financial statements is determined on the basis of control, encompassing not only
subsidiaries determined based on voting rights (or similar rights) alone or in combination with other arrangements, but
also structured entities governed by one or more contractual arrangements.
A subsidiary refers to an entity controlled by the Company (including enterprises, divisible parts of investees, and
structured entities controlled by the enterprise, etc.). A structured entity refers to an entity designed so that voting
rights or similar rights are not the dominant factor in deciding who controls the entity (sometimes referred to as a
special purpose entity).
(2) Compilation method of consolidated financial statements
The Company prepares consolidated financial statements based on its own financial statements and those of its
subsidiaries, and using other relevant information.
In preparing consolidated financial statements, the Company treats the entire corporate group as a single
accounting entity, reflecting the group's overall financial position, operating results, and cash flows in accordance with
unified accounting policies and periods pursuant to CAS recognition, measurement, and presentation requirements.
① Consolidating items of assets, liabilities, owners' equity, revenue, expenses, and cash flows of the parent
company and its subsidiaries.
② Offsetting the parent company's long-term equity investment in subsidiaries against its share of owners' equity
in subsidiaries.
③ Offsetting the effects of internal transactions between the parent company and subsidiaries, and among
subsidiaries. Where internal transactions indicate impairment losses on relevant assets, such losses shall be
recognized in full.
④ Adjusting special transaction matters from the perspective of the enterprise group.
(3) Special considerations in consolidation elimination
① Long-term equity investments held by subsidiaries in the Company shall be regarded as treasury shares of the
Company, presented as a deduction in owners' equity under the item "Less: Treasury shares" in the consolidated
balance sheet.
Long-term equity investments held between subsidiaries shall be eliminated by offsetting the long-term equity
investment against the corresponding share of owners' equity in the investee subsidiary, mutatis mutandis to the
Company's elimination method for subsidiaries.
② Since "Special reserve" and "General risk reserve" are neither paid-in capital (or share capital) nor capital
reserve, and differ from retained earnings and undistributed profits, they are restored based on the share attributable
to owners of the parent company after the elimination of long-term equity investments and owners' equity of
subsidiaries.
③ If temporary differences arise between the carrying amounts of assets and liabilities in the consolidated
balance sheet and their tax bases in the respective taxable entities due to the elimination of unrealized internal sales
profits and losses, deferred income tax assets or deferred income tax liabilities are recognized in the consolidated
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
balance sheet, with income tax expense in the consolidated income statement adjusted accordingly, except for
deferred income taxes related to transactions recognized directly in equity or business combinations.
④ Unrealized internal transaction profits and losses arising from the Company's sale of assets to subsidiaries
shall be fully offset against "Net profit attributable to owners of the parent company". Unrealized internal transaction
profits and losses arising from subsidiaries' sales of assets to the Company shall be allocated and offset between "Net
profit attributable to owners of the parent company" and "Non-controlling interests" in proportion to the Company's
allocation ratio to the subsidiary. Unrealized internal transaction profits and losses arising from sales of assets
between subsidiaries shall be allocated and offset between "Net profit attributable to owners of the parent company"
and "Non-controlling interests" in proportion to the Company's allocation ratio to the selling subsidiary.
⑤ Where the current loss shared by non-controlling shareholders of a subsidiary exceeds their share in the
beginning owners' equity of the subsidiary, the excess shall still be deducted from non-controlling interests.
A joint arrangement refers to an arrangement under the joint control of two or more parties. The Company's joint
arrangements are classified into joint operations and joint ventures.
(1) Joint operations
A joint operation refers to a joint arrangement whereby the Company has rights to the assets and obligations for
the liabilities relating to the arrangement.
The Company recognizes the following items in relation to its share of interest in a joint operation and accounts
for them in accordance with relevant CAS:
① Recognize solely-held assets and jointly-held assets according to its share;
② Recognize solely-incurred liabilities and jointly-incurred liabilities according to its share;
③ Recognize revenue from the sale of its share of output arising from the joint operation;
④ Recognize its share of revenue from the sale of output by the joint operation;
⑤ Recognize solely-incurred expenses and jointly-incurred expenses according to its share.
(2) Joint ventures
A joint venture refers to a joint arrangement whereby the Company only has rights to the net assets of the
arrangement.
The Company accounts for investments in joint ventures in accordance with the equity method provisions for
long-term equity investments.
Cash refers to cash on hand and deposits that can be readily drawn upon for payments. Cash equivalents refer to
short-term (generally maturing within three months from the acquisition date), highly liquid investments that are readily
convertible to known amounts of cash and subject to an insignificant risk of changes in value.
(1) Determination of exchange rates for foreign currency transactions
Foreign currency transactions of the Company are translated into the functional currency at initial recognition
using the spot exchange rate on the transaction date or an exchange rate determined through a systematic and
rational method that approximates the spot rate on the transaction date (hereinafter referred to as "approximate spot
rate").
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(2) Translation of foreign currency monetary items at the balance sheet date
At the balance sheet date, foreign currency monetary items are translated using the spot exchange rate at the
balance sheet date. Exchange differences arising from differences between the spot rate at the balance sheet date
and the spot rate at initial recognition or the previous balance sheet date are recognized in current profit or loss.
Foreign currency non-monetary items measured at historical cost are still translated using the spot exchange rate on
the transaction date; foreign currency non-monetary items measured at fair value are translated using the spot
exchange rate on the date when the fair value is determined. For financial assets measured at fair value through profit
or loss, the difference between the translated functional currency amount and the original functional currency amount
is recognized in current profit or loss.
(3) Translation method for foreign currency statements
Before translating the financial statements of overseas operations, the accounting period and accounting policies
of overseas operations are adjusted to align with those of the Company, and financial statements in the respective
currency (other than functional currency) are prepared based on adjusted accounting policies and periods, followed by
translation under the following rules:
① Assets and liabilities items in the balance sheet are translated using the spot exchange rate at the balance
sheet date; owners' equity items, except for "Undistributed profits", are translated using the spot exchange rate at the
time of occurrence.
② Income and expense items in the income statement are translated using the spot exchange rate or
approximate spot rate on the transaction date.
③ Foreign currency cash flows and cash flows of overseas subsidiaries are translated using the spot exchange
rate or approximate spot rate on the date of cash flows. The effect of exchange rate changes on cash is presented
separately in the cash flow statement as a reconciling item.
④ Resulting foreign currency statement translation differences are presented under "Other comprehensive
income" within owners' equity in the consolidated balance sheet when compiling consolidated financial statements.
Upon disposal of an overseas operation resulting in loss of control, the foreign currency translation differences
related to that overseas operation presented under owners' equity in the balance sheet are reclassified into current
profit or loss in full or in proportion to the disposal.
A financial instrument refers to a contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
(1) Recognition and derecognition of financial instruments
The Company recognizes a financial asset or financial liability when it becomes a party to the contractual
provisions of the instrument.
A financial asset is derecognized when meeting one of the following conditions:
① The contractual rights to receive cash flows from the financial asset expire;
② The financial asset has been transferred and meets the criteria for derecognition of financial assets below.
A financial liability (or part thereof) is derecognized when its present obligation has been discharged. Where an
agreement is signed between the Company (debtor) and the lender to replace the existing financial liability by
assuming a new financial liability with substantially different contractual terms, the existing financial liability is
derecognized and a new financial liability is recognized simultaneously. Where the Company makes substantial
modifications to the contractual terms of an existing financial liability (or part thereof), the existing financial liability is
derecognized and a new financial liability is recognized in accordance with modified terms.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Purchases or sales of financial assets in a regular way are recognized and derecognized on the trade date.
Regular way purchases or sales of financial assets refer to deliveries of financial assets within the time frame
established by regulation or market convention according to contract terms. Trade date refers to the date on which the
Company commits to purchase or sell a financial asset.
(2) Classification and measurement of financial assets
At initial recognition, based on the business model for managing financial assets and the contractual cash flow
characteristics of financial assets, the Company classifies financial assets into: financial assets measured at amortized
cost, financial assets measured at fair value through profit or loss (FVTPL), and financial assets measured at fair value
through other comprehensive income (FVOCI). Unless the Company changes its business model for managing
financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period
following the change in business model, financial assets shall not be reclassified after initial recognition.
Financial assets are measured at fair value at initial recognition. For financial assets measured at FVTPL, relevant
transaction costs are directly recognized in profit or loss; for other categories of financial assets, relevant transaction
costs are included in their initial recognition amounts. Notes receivable and accounts receivable arising from the sale
of goods or rendering of services that do not contain or consider significant financing components are initially
measured at the transaction price defined in the revenue standard.
Subsequent measurement of financial assets depends on their classification:
① Financial assets measured at amortized cost
Financial assets meeting both of the following conditions are classified as financial assets measured at amortized
cost: the Company manages the financial assets under a business model whose objective is to collect contractual
cash flows; the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding (SPPI). For such financial assets, the effective
interest method is used for subsequent measurement at amortized cost. Gains or losses arising from derecognition,
amortization using the effective interest method, or impairment are recognized in profit or loss.
② Financial assets measured at fair value through other comprehensive income (FVOCI)
Financial assets meeting both of the following conditions are classified as financial assets measured at FVOCI:
the Company manages the financial assets under a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets; the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (SPPI). For
such financial assets, subsequent measurement is performed at fair value. Except for impairment losses or gains and
exchange differences recognized in profit or loss, fair value changes of such financial assets are recognized in other
comprehensive income until the financial asset is derecognized, whereupon its cumulative gains or losses are
transferred to profit or loss. However, interest income calculated using the effective interest method is recognized in
profit or loss.
The Company irrevocably designates certain non-trading equity instrument investments as financial assets
measured at FVOCI; only relevant dividend income is recognized in profit or loss, while fair value changes are
recognized in other comprehensive income, and cumulative gains or losses are transferred to retained earnings upon
derecognition.
③ Financial assets measured at fair value through profit or loss (FVTPL)
Financial assets other than those measured at amortized cost and FVOCI are classified as financial assets
measured at FVTPL. For such financial assets, subsequent measurement is performed at fair value, and all fair value
changes are recognized in profit or loss.
(3) Classification and measurement of financial liabilities
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
The Company classifies financial liabilities into: financial liabilities measured at FVTPL, loan commitments for
below-market-rate loans and financial guarantee contract liabilities, and financial liabilities measured at amortized cost.
Subsequent measurement of financial liabilities depends on their classification:
① Financial liabilities measured at fair value through profit or loss (FVTPL)
Such financial liabilities include trading financial liabilities (including derivatives classified as financial liabilities)
and financial liabilities designated as measured at FVTPL. After initial recognition, such financial liabilities are
subsequently measured at fair value; except for those related to hedge accounting, gains or losses (including interest
expense) are recognized in profit or loss. However, for financial liabilities designated as measured at FVTPL, the
amount of change in fair value caused by changes in the Company's own credit risk is recognized in other
comprehensive income; upon derecognition, cumulative gains or losses previously recognized in other comprehensive
income are transferred to retained earnings.
② Loan commitments and financial guarantee contract liabilities
A loan commitment is a commitment provided by the Company to a customer to provide a loan under
predetermined contractual terms within the commitment period. Impairment losses for loan commitments are accrued
according to the expected credit loss model.
A financial guarantee contract refers to a contract that requires the Company to make specified payments to
reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance
with the terms of a debt instrument. Financial guarantee contract liabilities are subsequently measured at the higher of
the loss allowance determined in accordance with financial instrument impairment principles and the initial recognition
amount less cumulative amortization recognized under revenue principles.
③ Financial liabilities measured at amortized cost
After initial recognition, other financial liabilities are measured at amortized cost using the effective interest
method.
Except in special circumstances, financial liabilities and equity instruments are distinguished according to the
following principles:
① If the Company cannot unconditionally avoid delivering cash or another financial asset to settle a contractual
obligation, the contractual obligation meets the definition of a financial liability. Although some financial instruments do
not explicitly contain terms and conditions requiring delivery of cash or another financial asset, they may indirectly
create contractual obligations through other terms and conditions.
② If a financial instrument will or may be settled in the Company's own equity instruments, it is necessary to
consider whether the Company's equity instruments used to settle the instrument are used as substitutes for cash or
other financial assets, or to enable the holder to enjoy the residual interest in the issuer's assets after deducting all
liabilities. If the former, the instrument is a financial liability of the issuer; if the latter, the instrument is an equity
instrument of the issuer. Under certain circumstances, where a contract requires or allows the Company to settle a
financial instrument with its own equity instruments, and the contractual right or obligation amount equals the quantity
of equity instruments to be received or delivered multiplied by their fair value at settlement, the contract is classified as
a financial liability, regardless of whether the amount is fixed or varies based on variables other than the market price
of the Company's own equity instruments (e.g., interest rate, commodity price, or financial instrument price).
(4) Derivative financial instruments and embedded derivatives
Derivative financial instruments are initially measured at fair value on the date the derivative contract is signed
and subsequently measured at fair value. A derivative financial instrument with a positive fair value is recognized as an
asset, and one with a negative fair value is recognized as a liability.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Gains or losses arising from changes in the fair value of derivatives are directly recognized in profit or loss, except
for the effective portion of cash flow hedges, which is recognized in other comprehensive income and reclassified into
profit or loss when the hedged item affects profit or loss.
For hybrid instruments containing embedded derivatives, if the host contract is a financial asset, the hybrid
instrument as a whole applies the classification rules for financial assets. If the host contract is not a financial asset
and the hybrid instrument is not accounted for at FVTPL, an embedded derivative is bifurcated from the host contract
and treated as a standalone derivative if its economic characteristics and risks are not closely related to those of the
host contract, and a separate instrument with the same terms as the embedded derivative would meet the definition of
a derivative. If the fair value of the embedded derivative cannot be measured reliably on the acquisition date or
subsequent balance sheet dates, the hybrid instrument as a whole is designated as a financial asset or financial
liability at FVTPL.
(5) Impairment of financial instruments
The Company recognizes loss allowances on the basis of expected credit losses (ECL) for financial assets
measured at amortized cost, debt investments measured at FVOCI, contract assets, lease receivables, loan
commitments, and financial guarantee contracts.
① Measurement of expected credit losses
Expected credit losses refer to the weighted average of credit losses of financial instruments weighted by the risk
of default. Credit loss refers to the difference between all contractual cash flows receivable under the contract and all
cash flows expected to be received, discounted at the original effective interest rate—namely, the present value of all
cash shortfalls. Among them, for purchased or originated credit-impaired (POCI) financial assets, discounting is
performed using the credit-adjusted effective interest rate.
Lifetime expected credit losses refer to the expected credit losses that result from all possible default events over
the expected life of a financial instrument.
events on a financial instrument that are possible within 12 months after the balance sheet date (or the expected life if
less than 12 months).
At each balance sheet date, the Company measures expected credit losses for financial instruments at different
stages. Where credit risk has not increased significantly since initial recognition, the instrument is in Stage 1, and the
loss allowance is measured at an amount equal to 12-month ECL; where credit risk has increased significantly since
initial recognition but is not credit-impaired, the instrument is in Stage 2, and the loss allowance is measured at an
amount equal to lifetime ECL; where the financial instrument is credit-impaired since initial recognition, the instrument
is in Stage 3, and the loss allowance is measured at an amount equal to lifetime ECL.
For financial instruments with low credit risk at the balance sheet date, the Company assumes that credit risk has
not increased significantly since initial recognition and measures the loss allowance at an amount equal to 12-month
ECL.
For financial instruments in Stage 1, Stage 2, and those with low credit risk, interest income is calculated based
on the gross carrying amount (without deducting impairment allowance) and the effective interest rate. For financial
instruments in Stage 3, interest income is calculated based on the amortized cost (gross carrying amount less
impairment allowance) and the effective interest rate.
For notes receivable and accounts receivable, whether containing a significant financing component or not, the
Company always measures the loss allowance at an amount equal to lifetime ECL.
A. Receivables
For notes receivable, accounts receivable, and other receivables with objective evidence of impairment or
applicable for individual assessment, individual impairment tests are conducted to recognize ECL and accrue
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
individual impairment allowances. For notes receivable, accounts receivable, and other receivables without objective
evidence of impairment, or when information on ECL cannot be assessed at a reasonable cost for an individual asset,
the Company groups them into portfolios based on credit risk characteristics and calculates ECL on a collective basis.
The basis for determining portfolios is as follows:
Basis for determining portfolios of notes receivable:
Notes receivable portfolio 1: Commercial acceptance bills
Notes receivable portfolio 2: Bank acceptance bills
For notes receivable categorized into portfolios, the Company calculates ECL based on exposure at default and
the lifetime ECL rate, referencing historical credit loss experience, combined with current conditions and forecasts of
future economic conditions.
Basis for determining portfolios of accounts receivable:
Accounts receivable portfolio 1: Receivables from customers
For accounts receivable categorized into portfolios, the Company prepares an aging schedule and lifetime ECL
rate matrix to calculate ECL, referencing historical credit loss experience, current conditions, and forecasts of future
economic conditions.
Basis for determining portfolios of other receivables:
Other receivables portfolio 1: Deposits and security deposits receivable
Other receivables portfolio 2: Employee petty cash receivable
Other receivables portfolio 3: Other receivables
For other receivables categorized into portfolios, the Company calculates ECL based on exposure at default and
the 12-month or lifetime ECL rate, referencing historical credit loss experience, current conditions, and forecasts of
future economic conditions.
The aging calculation method for determining credit risk characteristic portfolios is: aging for notes receivable,
accounts receivable, and other receivables is determined from the booking date to the balance sheet date.
B. Debt investments, other debt investments
For debt investments and other debt investments, the Company calculates ECL based on the nature of the
investment, counterparties, and types of exposures, using exposure at default and the 12-month or lifetime ECL rate.
② Low credit risk
A financial instrument is deemed to have low credit risk if the default risk is low, the borrower has a strong
capacity to meet its contractual cash flow obligations in the short term, and adverse changes in economic and
business conditions in the longer term will not necessarily reduce the borrower's ability to fulfill its contractual cash flow
obligations.
③ Significant increase in credit risk
The Company assesses whether credit risk has increased significantly since initial recognition by comparing the
probability of default over the expected life of the financial instrument at the balance sheet date with that determined at
initial recognition to determine the relative change in default probability.
In determining whether credit risk has increased significantly since initial recognition, the Company considers
reasonable and supportable information available without undue cost or effort, including forward-looking information.
Information considered by the Company includes:
A. Significant changes in internal price indicators resulting from changes in credit risk;
B. Adverse changes in business, financial, or economic conditions that are expected to cause a significant change
in the debtor's ability to meet its debt obligations;
C. Actual or expected significant changes in the operating results of the debtor; Significant adverse changes in the
regulatory, economic, or technological environment of the debtor;
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
D. Significant changes in the value of collateral supporting the obligation or in the quality of third-party guarantees
or credit enhancements. These changes are expected to reduce the debtor's economic incentive to pay within
contractual terms or affect the probability of default;
E. Significant changes in the expected economic incentive of the debtor to make repayments according to the
contractual terms;
F. Expected changes in loan contracts, including whether anticipated contractual breaches might lead to covenant
waivers or amendments, grace periods, interest rate step-ups, collateral/guarantee additions, or other changes to the
contractual framework;
G. Significant changes in the expected performance and payment behavior of the debtor;
H. Whether contractual payments are overdue for more than (inclusive of) 30 days.
Depending on the nature of the financial instruments, the Company evaluates whether credit risk has increased
significantly on an individual basis or a collective basis. When evaluated on a portfolio basis, financial instruments may
be grouped based on shared credit risk characteristics, such as delinquency information and credit risk ratings.
Generally, if overdue for more than 30 days, the Company determines that the credit risk of the financial
instrument has increased significantly. Unless the Company can obtain reasonable and supportable information
without undue cost or effort demonstrating that credit risk has not increased significantly since initial recognition
despite being overdue for more than 30 days.
④ Credit-impaired financial assets
The Company assesses at the balance sheet date whether financial assets measured at amortized cost and debt
investments measured at FVOCI have become credit-impaired. A financial asset is credit-impaired when one or more
events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.
Evidence of credit impairment includes observable data about the following events:
Significant financial difficulty of the issuer or debtor; A breach of contract by the debtor, such as a default or
delinquency in interest or principal payments; The creditor, for economic or contractual reasons relating to the debtor's
financial difficulty, granting a concession that would not otherwise be considered; It becoming probable that the debtor
will enter bankruptcy or other financial reorganization; The disappearance of an active market for that financial asset
because of financial difficulties of the issuer or debtor; The purchase or origination of a financial asset at a deep
discount that reflects incurred credit losses.
⑤ Presentation of ECL allowance
To reflect changes in the credit risk of financial instruments since initial recognition, the Company remeasures
ECL at each balance sheet date. The resulting increase or reversal of the loss allowance is recognized in profit or loss
as an impairment loss or gain. For financial assets measured at amortized cost, the loss allowance offsets the carrying
amount of the financial asset presented in the balance sheet; for debt investments measured at FVOCI, the Company
recognizes the loss allowance in other comprehensive income without reducing the carrying amount of the financial
asset.
⑥ Write-off
The Company writes down the gross carrying amount of a financial asset directly when it no longer has a
reasonable expectation of recovering the contractual cash flows in whole or in part. Such a write-down constitutes a
derecognition of the related financial asset. This usually occurs when the Company determines that the debtor does
not have assets or sources of income that could generate sufficient cash flows to repay the amount subject to write-off.
Subsequent recoveries of financial assets previously written off are recognized in profit or loss in the period of
recovery as a reversal of impairment loss.
(6) Transfer of financial assets
Transfer of financial assets refers to the following two scenarios:
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
A. Transferring the contractual rights to receive cash flows from the financial asset to another party;
B. Transferring the financial asset in whole or in part to another party while retaining the contractual rights to
receive cash flows, but assuming a contractual obligation to pay those cash flows to one or more recipients.
① Derecognition of transferred financial assets
A financial asset is derecognized if the Company has transferred substantially all the risks and rewards of
ownership of the financial asset to the transferee, or has neither transferred nor retained substantially all the risks and
rewards of ownership, but has relinquished control over the financial asset.
In determining whether control over the transferred financial asset has been relinquished, focus is placed on the
transferee's practical ability to sell the financial asset. If the transferee has the practical ability to sell the transferred
financial asset in its entirety to an unrelated third party without attaching additional restrictions, the Company has
relinquished control over the asset.
The Company focuses on the substance of financial asset transfers when judging whether derecognition criteria
are met.
If a transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the
following two amounts is recognized in profit or loss:
A. The carrying amount of the transferred financial asset;
B. The sum of consideration received from the transfer and the cumulative amount of fair value changes
previously recognized directly in other comprehensive income corresponding to the derecognized part (where the
transferred financial asset is classified as measured at FVOCI under Article 18 of CAS 22 - Recognition and
Measurement of Financial Instruments).
If a partial transfer of a financial asset satisfies the derecognition conditions, the total carrying amount of the
transferred asset is allocated between the derecognized part and the retained part (where retained servicing assets
are treated as part of the continuing financial asset) based on their relative fair values on the transfer date, with the
difference between the following two amounts recognized in profit or loss:
A. The carrying amount of the derecognized part on the derecognition date;
B. The sum of consideration received for the derecognized part and the cumulative amount of fair value changes
previously recognized in other comprehensive income corresponding to the derecognized part (where the transferred
asset is classified as measured at FVOCI under Article 18 of CAS 22).
② Continuing involvement in transferred financial assets
If the Company neither transfers nor retains substantially all the risks and rewards of ownership and has not
relinquished control, it recognizes the financial asset to the extent of its continuing involvement and recognizes an
associated liability accordingly.
The extent of continuing involvement refers to the extent to which the enterprise is exposed to changes in the
value of the transferred financial asset.
③ Continued recognition of transferred financial assets
If the Company retains substantially all the risks and rewards of ownership of the transferred financial asset, it
continues to recognize the entire financial asset and recognizes the consideration received as a financial liability.
The financial asset and the recognized associated liability shall not be offset. In subsequent accounting periods,
the enterprise continues to recognize income (or gains) arising from the asset and expenses (or losses) incurred on
the liability.
(7) Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
However, they are presented on a net basis in the balance sheet if both of the following conditions are met:
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
The Company has a legally enforceable right to set off the recognized amounts, and such legal right is currently
enforceable;
The Company plans to settle on a net basis, or to realize the financial asset and settle the financial liability
simultaneously.
For transfers of financial assets that do not meet derecognition conditions, the transferor shall not offset the
transferred financial asset and the related liability.
Basis for determining portfolios of notes receivable:
Notes receivable portfolio 1: Commercial acceptance bills
Notes receivable portfolio 2: Bank acceptance bills
For notes receivable categorized into portfolios, the Company calculates ECL based on exposure at default and
the lifetime ECL rate, referencing historical credit loss experience, combined with current conditions and forecasts of
future economic conditions.
Basis for determining portfolios of accounts receivable:
Accounts receivable portfolio 1: Receivables from customers
For accounts receivable categorized into portfolios, the Company prepares an aging schedule and lifetime ECL
rate matrix to calculate ECL, referencing historical credit loss experience, current conditions, and forecasts of future
economic conditions.
Not applicable
Method for Determining Expected Credit Losses and Accounting Treatment of Other Receivables
Basis for determining portfolios of other receivables:
Other receivables portfolio 1: Deposits and security deposits receivable
Other receivables portfolio 2: Employee petty cash receivable
Other receivables portfolio 3: Other receivables
For other receivables categorized into portfolios, the Company calculates ECL based on exposure at default and
the 12-month or lifetime ECL rate, referencing historical credit loss experience, current conditions, and forecasts of
future economic conditions.
The Company presents contract assets or contract liabilities in the balance sheet based on the relationship
between the fulfillment of performance obligations and customer payments. The Company's right to consideration for
goods or services transferred to customers (where such right depends on factors other than the passage of time) is
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
presented as contract assets. The Company's obligation to transfer goods or services to customers for consideration
received or receivable from customers is presented as contract liabilities.
For the method of determining expected credit losses and accounting treatment of contract assets, please refer to
Note V.11.
Contract assets and contract liabilities are presented separately in the balance sheet. Contract assets and
contract liabilities under the same contract are presented on a net basis. If the net amount is a debit balance, it is
presented under "Contract assets" or "Other non-current assets" based on its liquidity; if the net amount is a credit
balance, it is presented under "Contract liabilities" or "Other non-current liabilities" based on its liquidity. Contract
assets and contract liabilities under different contracts cannot be offset against each other.
(1) Classification of inventories
Inventories refer to finished goods or commodities held for sale in the ordinary course of business, work in
progress in the production process, and materials and supplies consumed in the production process or rendering of
services, including raw materials, work in progress, and finished goods (merchandise inventories).
(2) Valuation method for delivered inventories
The weighted average method is used upon delivery of raw materials and merchandise inventory (excluding
luxury brand watches), while the specific identification method is used for luxury brand watch inventories.
(3) Inventory system
The Company adopts a perpetual inventory system and conducts physical counts at least once a year. Inventory
surpluses and shortages are recognized in current profit or loss.
(4) Recognition criteria and provision method for inventory write-downs
Inventories are measured at the lower of cost and net realizable value at the balance sheet date. If the cost
exceeds net realizable value, an inventory write-down provision is recognized in profit or loss.
In determining net realizable value, reliable evidence obtained is taken as the basis, taking into account the
purpose of holding inventories, the impact of post-balance sheet events, and other factors.
① For inventories directly held for sale, such as finished goods, merchandise, and materials for sale, net
realizable value is determined in the ordinary course of business by the estimated selling price less estimated selling
expenses and related taxes. For inventories held to satisfy sales contracts or service contracts, the contract price
serves as the basis for calculating net realizable value; if the quantity held exceeds the order quantity in the sales
contract, the net realizable value of the excess is based on general selling prices. For materials held for sale, market
prices serve as the basis for calculating net realizable value.
② For material inventories requiring processing, net realizable value is determined in the ordinary course of
business by the estimated selling price of finished products less estimated costs to completion, estimated selling
expenses, and related taxes. If the net realizable value of the finished products produced from the materials exceeds
cost, the materials are measured at cost; if a decline in material prices indicates that the net realizable value of
finished products is below cost, the materials are measured at net realizable value, and an inventory write-down
provision is accrued for the difference.
③ The Company generally accrues inventory write-down provisions on an individual inventory item basis; for
inventories with large quantities and low unit prices, provisions are accrued by inventory category.
④ If the factors causing previous write-downs of inventory value no longer exist at the balance sheet date, the
written-down amount is restored and reversed within the original inventory write-down provision, with the reversed
amount recognized in current profit or loss.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Not applicable
Not applicable
Not applicable
Not applicable
The Company's long-term equity investments include equity investments where it exercises control or significant
influence over investees. An investee over which the Company can exert significant influence is an associate of the
Company.
(1) Basis for determining significant influence over investees
Significant influence refers to the power to participate in the financial and operating policy decisions of the
investee, but without control or joint control over the formulation of those policies. In determining significant influence,
consideration is given to the voting shares held directly or indirectly by the investor in the investee, as well as the effect
of currently exercisable potential voting rights held by the investor and other parties assumed to be converted into
equity, including warrants, share options, and convertible corporate bonds issued by the investee.
When the Company directly or indirectly holds 20% or more (inclusive) but less than 50% of the voting shares of
an investee, it is generally considered to have significant influence, unless there is clear evidence indicating that it
cannot participate in operating decisions and thus does not exert significant influence.
(2) Determination of initial investment cost
① For long-term equity investments formed through business combinations, investment cost is determined as
follows:
A. In a business combination under common control where consideration is paid in cash, transfer of non-cash
assets, or assumption of debt, the initial investment cost is the share of carrying amount of the combinee's owners'
equity in the consolidated financial statements of the ultimate controlling party on the merger date. Any difference
between the initial investment cost and the carrying amount of cash paid, non-cash assets transferred, and debts
assumed is adjusted against capital reserve; if capital reserve is insufficient, it is adjusted against retained earnings;
B. In a business combination under common control where equity securities are issued as combination
consideration, the initial investment cost is the share of carrying amount of the combinee's owners' equity in the
consolidated financial statements of the ultimate controlling party on the merger date. The aggregate par value of
shares issued is recognized as share capital; the difference between the initial investment cost and the aggregate par
value is adjusted against capital reserve; if capital reserve is insufficient, it is adjusted against retained earnings;
C. In a business combination not under common control, the combination cost—determined as the fair value of
assets given, liabilities incurred or assumed, and equity securities issued on the acquisition date to gain control—is
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
recognized as the initial investment cost. Intermediary fees such as auditing, legal services, valuation, and consulting
fees and other related administrative expenses incurred by the acquirer for business combinations are recognized in
profit or loss when incurred.
② For long-term equity investments acquired other than through business combinations, investment cost is
determined as follows:
A. For long-term equity investments acquired by cash payment, the actual purchase price paid is recognized as
the investment cost. Initial investment cost includes expenses, taxes, and other necessary expenditures directly
related to the acquisition;
B. For long-term equity investments acquired by issuing equity securities, the fair value of the issued equity
securities is recognized as the initial investment cost;
C. For long-term equity investments acquired through non-monetary asset exchanges, if the exchange has
commercial substance and the fair value of the asset received or surrendered can be measured reliably, the initial cost
is based on the fair value of the surrendered asset plus related taxes, with any difference between fair value and book
value recognized in profit or loss; if both conditions are not met, the carrying amount of the surrendered asset plus
related taxes is recognized as the initial investment cost.
D. For long-term equity investments acquired through debt restructuring, the initial carrying amount is based on
the fair value of claims waived and directly attributable taxes and other costs, with the difference between the fair value
and carrying amount of waived claims recognized in profit or loss.
(3) Subsequent measurement and recognition of profit or loss
Long-term equity investments where the Company can exercise control over investees are accounted for using
the cost method; long-term equity investments in associates are accounted for using the equity method.
① Cost method
For long-term equity investments accounted for using the cost method, the cost is adjusted when adding or
recovering investments; cash dividends or profits declared by the investee are recognized as current investment
income.
② Equity method
For long-term equity investments accounted for under the equity method, general accounting treatments are:
If the initial investment cost exceeds the Company's share of the fair value of the investee's identifiable net assets
at acquisition, the initial cost is not adjusted; if the initial investment cost is less than the Company's share of the fair
value of the investee's identifiable net assets at acquisition, the difference is recognized in profit or loss and the cost of
the investment is adjusted accordingly.
The Company recognizes investment income and other comprehensive income based on its share of net
profit/loss and other comprehensive income realized by the investee, while adjusting the carrying amount of the long-
term equity investment; the carrying amount of the investment is reduced by the Company's share of profits or cash
dividends declared by the investee; for changes in owners' equity of the investee other than net profit or loss, other
comprehensive income, and profit distribution, the carrying amount is adjusted and recognized in owners' equity. In
recognizing its share of the investee's net profit/loss, net profit is adjusted based on the fair value of the investee's
identifiable net assets upon acquisition. If accounting policies and periods of the investee differ from those of the
Company, the financial statements of the investee are adjusted to conform to the Company's accounting policies and
periods before recognizing investment income and other comprehensive income. Unrealized profits and losses from
internal transactions between the Company and its associates/joint ventures are eliminated in proportion to the share
attributable to the Company, upon which investment gains/losses are recognized. Where unrealized internal
transaction losses between the Company and investees represent asset impairment losses, they are recognized in full.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Where significant influence or joint control (without control) over an investee is obtained due to additional
investments, the initial cost under the equity method is the sum of the fair value of previously held equity plus new
investment costs. If the previously held equity investment was classified as an investment in other equity instruments,
the difference between fair value and carrying amount, along with cumulative gains or losses previously recognized in
OCI, is transferred to retained earnings in the period of adopting the equity method.
Upon loss of joint control or significant influence due to partial disposal of equity, the remaining equity is measured
at fair value, with the difference between its fair value and carrying amount on the date of losing joint control or
significant influence recognized in profit or loss. Other comprehensive income recognized under the equity method is
accounted for on the same basis as would be required if the investee had directly disposed of the related assets or
liabilities upon discontinuing the equity method.
(4) Impairment test method and provision for impairment
For methods of accruing asset impairment for investments in subsidiaries and associates, please refer to Note
V.30.
Measurement Model for Investment Properties
Cost model measurement
Depreciation or Amortization Method
(1) Classification of investment properties
Investment property refers to real estate held to earn rentals, for capital appreciation, or both. It primarily includes:
① Land use rights leased out.
② Land use rights held and intended to be transferred after appreciation.
③ Buildings leased out.
(2) Measurement model for investment properties
The Company adopts the cost model for subsequent measurement of investment properties; for the impairment
provision method, please refer to Note V.30.
The Company calculates depreciation or amortization on a straight-line basis based on cost less accumulated
impairment and net residual value. The depreciation periods and annual depreciation rates determined by category,
estimated useful life, and estimated net residual value rate are as follows:
Category Depreciation Period (Years) Residual Value Rate (%) Annual Depreciation Rate (%)
Buildings and structures 20-35 5.00 2.71-4.85
(1) Recognition criteria
Fixed assets are recognized at actual cost upon acquisition when both of the following conditions are met:
① It is probable that economic benefits associated with the fixed asset will flow to the enterprise.
② The cost of the fixed asset can be reliably measured.
Subsequent expenditures incurred on fixed assets meeting recognition criteria are included in the cost of fixed
assets; those not meeting recognition criteria are recognized in profit or loss when incurred.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(2) Depreciation methods
Annual Depreciation
Category Depreciation Method Depreciation Period Residual Value Rate
Rate
Buildings and
Straight-line method 20-35 5% 2.71%-4.85%
structures
Machinery and
Straight-line method 10 5%-10% 9%-9.5%
equipment
Electronic equipment Straight-line method 5 5% 19%
Transportation
Straight-line method 5 5% 19%
equipment
Other equipment Straight-line method 5 5% 19%
The Company accrues depreciation using the straight-line method starting from the month following the date the
fixed asset reaches its intended usable state, determining depreciation periods and annual rates by category,
estimated useful life, and estimated net residual value rate.
For fixed assets with impairment provisions accrued, the accumulated impairment provision is deducted when
calculating depreciation.
At each year-end, the Company reviews the useful life, estimated net residual value, and depreciation method of
fixed assets. If the estimated useful life differs from previous estimates, the useful life of the fixed asset is adjusted.
(1) Construction in progress is accounted for separately by approved project.
(2) Criteria and timing for transferring construction in progress to fixed assets
The carrying amount of fixed assets transferred from construction in progress comprises all expenditures incurred
before the asset reaches its intended usable state. This includes construction costs, original cost of machinery and
equipment, other necessary expenses incurred to bring the project to its intended usable state, as well as borrowing
costs on specific borrowings and general borrowings incurred before reaching the intended usable state. The
Company transfers construction in progress to fixed assets upon installation or construction completion reaching the
intended usable state. Fixed assets constructed that have reached the intended usable state but have not yet finalized
final accounts of completed projects are transferred to fixed assets based on estimated values derived from project
budgets, construction costs, or actual costs, and depreciated according to the Company's depreciation policy from the
date of reaching usable state. Upon finalization of final accounts, the estimated value is adjusted to actual cost, while
previously accrued depreciation is not adjusted.
(1) Recognition principles and capitalization period for borrowing costs
Borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets are
capitalized as part of the asset cost when all of the following conditions are met:
① Asset expenditures have been incurred;
② Borrowing costs have been incurred;
③ Acquisition, construction, or production activities necessary to prepare the asset for its intended use or sale
have commenced.
Other borrowing interest, discount or premium amortization, and exchange differences are recognized in current
profit or loss.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
If the acquisition, construction, or production of a qualifying asset is interrupted abnormally and the interruption
lasts continuously for more than 3 months, capitalization of borrowing costs is suspended.
Capitalization of borrowing costs ceases when the qualifying asset reaches its intended usable or salable state;
subsequent borrowing costs are recognized as expenses in the period incurred.
(2) Calculation method of capitalization rate and capitalization amount of borrowing costs
For specific borrowings borrowed for the acquisition, construction, or production of qualifying assets, the
capitalization amount is the actual interest expense incurred on the specific borrowings during the period, less interest
income from unutilized funds deposited in banks or investment income from temporary investments.
Where general borrowings are utilized for the acquisition, construction, or production of qualifying assets, the
interest amount to be capitalized on general borrowings is determined by multiplying the weighted average of
accumulated asset expenditures exceeding specific borrowings by the capitalization rate of the general borrowings
utilized. The capitalization rate is calculated and determined based on the weighted average interest rate of general
borrowings.
Not applicable
Not applicable
(1) Useful life, determination basis, estimation, amortization method, or review procedures
Recorded at actual cost upon acquisition.
① Estimation of useful life for intangible assets with finite useful lives:
Estimated Useful
Item Basis
Life
Land use rights 50 years Statutory rights of use
Software Determined with reference to the period generating economic benefits for the
systems Company
Trademark Determined with reference to the period generating economic benefits for the
rights Company
At each year-end, the Company reviews the useful life and amortization method of intangible assets with finite
useful lives. Upon review, the useful lives and amortization methods of intangible assets at the end of the period
showed no difference from previous estimates.
② Intangible assets whose period of bringing economic benefits to the enterprise is unforeseeable are regarded
as intangible assets with indefinite useful lives. For intangible assets with indefinite useful lives, the Company reviews
their useful lives at each year-end; if still determined as indefinite upon review, impairment tests are conducted at the
balance sheet date.
③ Amortization of intangible assets
For intangible assets with finite useful lives, the Company determines their useful lives upon acquisition and
amortizes them systematically and rationally over their useful lives using the straight-line method, with the amortization
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
amount recognized in current profit or loss or included in the cost of related assets based on beneficiary items. The
amortizable amount is its cost less estimated residual value. For intangible assets with impairment provisions accrued,
the accumulated impairment provision is also deducted. The residual value of an intangible asset with a finite useful
life is treated as zero, unless: a third party has committed to purchase the asset at the end of its useful life, or
estimated residual value information can be obtained from an active market that is likely to exist at the end of its useful
life.
Intangible assets with indefinite useful lives are not amortized. At each year-end, the useful lives of intangible
assets with indefinite useful lives are reviewed; if evidence indicates that the useful life is finite, the useful life is
estimated and amortized systematically and rationally over the estimated useful life.
(2) Scope of R&D expenditure collection and related accounting treatments
The Company collects expenses directly related to R&D activities as R&D expenditures, including employee
compensation for R&D personnel, direct input costs, depreciation expenses and long-term prepaid expenses, design
fees, equipment commissioning fees, amortization of intangible assets, outsourced R&D fees, other expenses, etc.
① The Company treats data collection and preparatory activities for further development as the research stage;
expenditures in the research stage are recognized in profit or loss when incurred.
② Development activities conducted after the completion of the research stage are treated as the development
stage.
Expenditures during the development stage are recognized as intangible assets only when all of the following
conditions are met:
A. It is technically feasible to complete the intangible asset so that it will be available for use or sale;
B. There is an intention to complete the intangible asset and use or sell it;
C. The manner in which the intangible asset will generate economic benefits, including demonstrating the
existence of a market for the output of the intangible asset or the intangible asset itself, or, if it is to be used internally,
the usefulness of the intangible asset;
D. Availability of adequate technical, financial, and other resources to complete the development and to use or sell
the intangible asset;
E. Ability to measure reliably the expenditure attributable to the intangible asset during its development stage.
Impairment of long-term equity investments in subsidiaries and associates, investment properties measured under
the cost model, fixed assets, construction in progress, right-of-use assets, and intangible assets is determined as
follows:
The Company assesses at the balance sheet date whether there are indications of asset impairment; if any such
indication exists, the Company estimates the recoverable amount and conducts impairment tests. Goodwill arising
from business combinations, intangible assets with indefinite useful lives, and intangible assets not yet ready for use
are tested for impairment annually, regardless of whether there is any indication of impairment.
The recoverable amount is determined at the higher of the asset's fair value less costs of disposal and the present
value of the estimated future cash flows of the asset. The Company estimates the recoverable amount on an individual
asset basis; if it is difficult to estimate the recoverable amount of an individual asset, the recoverable amount of the
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
asset group to which the asset belongs is determined. An asset group is identified based on whether major cash
inflows generated by the asset group are largely independent of cash inflows from other assets or asset groups.
When the recoverable amount of an asset or asset group is lower than its carrying amount, the Company writes
down its carrying amount to the recoverable amount, recognizing the write-down in profit or loss and accruing a
corresponding asset impairment provision.
In impairment testing, if there is an indication of impairment for an asset group or combination of asset groups
related to goodwill, an impairment test is first performed on the asset group or combination excluding goodwill to
calculate the recoverable amount and recognize corresponding impairment loss. Subsequently, an impairment test is
performed on the asset group or combination including goodwill by comparing its carrying amount with its recoverable
amount; if the recoverable amount is lower than the carrying amount, an impairment loss for goodwill is recognized.
Once recognized, asset impairment losses shall not be reversed in subsequent accounting periods.
Long-term prepaid expenses account for expenditures already incurred with an amortization period exceeding
one year to be borne by the current and subsequent periods, and are amortized evenly over the benefit period.
The Company presents contract assets or contract liabilities in the balance sheet based on the relationship
between the fulfillment of performance obligations and customer payments. The Company's right to consideration for
goods or services transferred to customers (where such right depends on factors other than the passage of time) is
presented as contract assets. The Company's obligation to transfer goods or services to customers for consideration
received or receivable from customers is presented as contract liabilities.
For the method of determining expected credit losses and accounting treatment of contract assets, please refer to
Note V.11.
Contract assets and contract liabilities are presented separately in the balance sheet. Contract assets and
contract liabilities under the same contract are presented on a net basis. If the net amount is a debit balance, it is
presented under "Contract assets" or "Other non-current assets" based on its liquidity; if the net amount is a credit
balance, it is presented under "Contract liabilities" or "Other non-current liabilities" based on its liquidity. Contract
assets and contract liabilities under different contracts cannot be offset against each other.
(1) Accounting treatment of short-term employee benefits
① Basic employee compensation (salaries, bonuses, allowances, subsidies)
During the accounting period in which employees render services, the Company recognizes short-term employee
benefits actually incurred as liabilities and in current profit or loss, unless other accounting standards require or permit
inclusion in asset costs.
② Employee welfare expenses
Employee welfare expenses incurred by the Company are recognized in current profit or loss or related asset
costs based on actual amounts when incurred. Non-monetary employee benefits are measured at fair value.
③ Social insurances such as medical, work-related injury, and maternity insurance, housing provident funds,
trade union funds, and employee education funds
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Social insurances (medical, work-related injury, maternity insurance), housing provident funds, trade union funds,
and employee education funds paid by the Company are calculated and recognized as liabilities and in profit or loss or
asset costs during the service period based on statutory accrual bases and proportions.
④ Short-term paid absences
The Company recognizes employee benefits related to accumulating paid absences when employees render
services that increase their entitlement to future paid absences, measuring them at the additional amount expected to
be paid as a result of unused entitlements. Employee benefits related to non-accumulating paid absences are
recognized in the accounting period in which absences actually occur.
⑤ Short-term profit-sharing plans
The Company recognizes relevant employee benefits payable under a profit-sharing plan when all of the following
conditions are met:
A. The enterprise has a present legal or constructive obligation to make payments as a result of past events;
B. The amount of obligation under the profit-sharing plan can be reliably estimated.
(2) Accounting treatment of post-employment benefits
① Defined contribution plans
During the accounting period in which employees render services, the Company recognizes the payable
contribution calculated under the defined contribution plan as a liability and in current profit or loss or asset costs.
If contributions are not expected to be settled wholly before twelve months after the end of the reporting period in
which employees render the related service, the Company discounts the total contributions payable to present value
(using discount rates matched to government bonds or high-quality corporate bonds) to measure employee benefits
payable.
② Defined benefit plans
A. Determining the present value of defined benefit obligations and current service cost
Using the projected unit credit method, unbiased and mutually compatible actuarial assumptions are applied to
estimate demographic and financial variables, measuring obligations under defined benefit plans and attributing
benefits to periods of service. Obligations under defined benefit plans are discounted at market yields of government
bonds or high-quality corporate bonds at the balance sheet date to determine the present value of obligations and
current service cost.
B. Recognizing net defined benefit liability or asset
When plan assets exist, the deficit or surplus resulting from the present value of defined benefit obligations less
the fair value of plan assets is recognized as a net defined benefit liability or net asset.
If a surplus exists, the net defined benefit asset is measured at the lower of the surplus in the defined benefit plan
and the asset ceiling.
C. Determining amounts recognized in asset costs or profit or loss
Service cost comprises current service cost, past service cost, and gains or losses on settlement. Except for
current service costs permitted or required by other standards to be included in asset costs, service costs are
recognized in profit or loss.
Net interest on the net defined benefit liability (asset), comprising interest income on plan assets, interest cost on
defined benefit obligations, and interest on the effect of the asset ceiling, is recognized in profit or loss.
D. Determining amounts recognized in other comprehensive income
Remeasurements of the net defined benefit liability (asset) comprise:
(a) Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions;
(b) Return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset);
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(c) Changes in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit
liability (asset).
Such remeasurements are recognized directly in other comprehensive income and are not reclassified to profit or
loss in subsequent periods; upon termination of the plan, all amounts previously recognized in OCI are transferred to
undistributed profits within equity.
(3) Accounting treatment of termination benefits
The Company recognizes a liability and expense for termination benefits at the earlier of the following dates:
① When the enterprise can no longer unilaterally withdraw the offer of those benefits;
② When the enterprise recognizes costs for a restructuring that involves the payment of termination benefits.
If termination benefits are not expected to be settled wholly within twelve months after the end of the annual
reporting period, they are discounted at market yields of matched bonds to measure employee benefits payable.
(4) Accounting treatment of other long-term employee benefits
① Meeting criteria for defined contribution plans
Where other long-term employee benefits meet the criteria of defined contribution plans, employee benefits
payable are measured at discounted total contributions payable.
② Meeting criteria for defined benefit plans
At the end of the reporting period, the Company recognizes employee benefit costs arising from other long-term
employee benefits as the following components:
A. Service cost;
B. Net interest on the net liability (asset) of other long-term employee benefits;
C. Changes from remeasurement of the net liability (asset) of other long-term employee benefits.
To simplify accounting treatments, the net total of the above items is recognized in profit or loss or relevant asset
costs.
(1) Recognition criteria for provisions
The Company recognizes an obligation related to a contingency as a provision when all of the following conditions
are met:
① The obligation is a present obligation assumed by the Company;
② It is probable that an outflow of economic benefits will be required to settle the obligation;
③ The amount of the obligation can be reliably measured.
(2) Measurement method for provisions
Provisions are initially measured at the best estimate of the expenditure required to settle the present obligation,
taking into account risks, uncertainties, and the time value of money related to contingencies. The carrying amount of
provisions is reviewed at each balance sheet date. If there is clear evidence that the carrying amount does not reflect
the current best estimate, it is adjusted to the current best estimate.
(1) Types of share-based payments
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
The Company's share-based payments include cash-settled share-based payments and equity-settled share-
based payments.
(2) Determination of fair value of equity instruments
① For shares granted to employees, fair value is measured at the market price of the Company's shares, adjusted
for terms and conditions (excluding vesting conditions other than market conditions) upon which the shares were
granted. ② For share options granted to employees, market prices are often unavailable. If no traded options with
similar terms and conditions exist, the Company selects an appropriate option pricing model to estimate the fair value
of granted options.
(3) Basis for determining the best estimate of exercisable equity instruments
At each balance sheet date during the vesting period, the Company makes best estimates based on newly
obtained information such as changes in the number of vesting employees, revising the number of equity instruments
expected to vest.
(4) Accounting treatment for implementation of share-based payment plans
Cash-settled share-based payments
① For cash-settled share-based payments immediately exercisable after grant, the fair value of liabilities assumed
by the Company is recognized in costs or expenses on the grant date, with a corresponding increase in liabilities. The
fair value of the liability is remeasured at each balance sheet date and settlement date before settlement, with changes
recognized in profit or loss.
② For cash-settled share-based payments exercisable only after completing vesting services or meeting
performance conditions, services received are recognized in costs/expenses and liabilities at each balance sheet date
during the vesting period based on the best estimate of vesting conditions and the fair value of liabilities assumed.
Equity-settled share-based payments
① For equity-settled share-based payments for employee services immediately exercisable after grant, the fair
value of equity instruments is recognized in costs/expenses on the grant date, with a corresponding increase in capital
reserve.
② For equity-settled share-based payments for employee services exercisable only after completing vesting
services or meeting performance conditions, services received are recognized in costs/expenses and capital reserve
at each balance sheet date during the vesting period based on the best estimate of vesting equity instruments at grant-
date fair value.
(5) Accounting treatment for modifications to share-based payment plans
When the Company modifies a share-based payment plan, if the modification increases the fair value of equity
instruments granted, the increase in services received is recognized based on the incremental fair value; if the
modification increases the number of equity instruments granted, the fair value of additional equity instruments is
recognized as an increase in services received. Incremental fair value refers to the difference between the fair values
of modified and original equity instruments on the modification date. If the modification reduces the total fair value of
share-based payments or alters terms and conditions unfavorably to employees, the Company continues to account
for services received as if the modification had not occurred, unless part or all of the granted instruments are canceled.
(6) Accounting treatment for cancellations/terminations of share-based payment plans
If granted equity instruments are canceled or settled during the vesting period (other than cancellations due to
failure to meet vesting conditions), the Company:
① Treats the cancellation or settlement as an acceleration of vesting and immediately recognizes the amount that
otherwise would have been recognized over the remainder of the vesting period;
② Treats all payments made to employees on cancellation or settlement as repurchases of equity interests,
recognizing any excess of payment over the fair value of equity instruments at repurchase date in current expenses.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
If the Company repurchases vested equity instruments from employees, it is deducted from owners' equity; any
excess of payment over the fair value at repurchase date is recognized in profit or loss.
Not applicable
Disclosure of Accounting Policies for Revenue Recognition and Measurement by Business Type
(1) General principles
Revenue is the gross inflow of economic benefits arising in the course of the Company's ordinary activities that
results in an increase in owners' equity, other than contributions from equity holders.
The Company recognizes revenue when performance obligations in a contract are satisfied, i.e., when the
customer obtains control of the relevant goods or services. Obtaining control over relevant goods or services means
being able to direct the use of, and obtain substantially all of the remaining economic benefits from, the goods or
services.
If a contract contains two or more performance obligations, the Company allocates the transaction price to each
individual performance obligation at contract inception in proportion to the relative standalone selling prices of
promised goods or services, measuring revenue based on allocated transaction prices.
The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for
transferring goods or services to customers, excluding amounts collected on behalf of third parties. In determining
transaction prices, if variable consideration exists, the Company determines the best estimate using the expected
value or most likely amount, including it in the transaction price only to the extent that it is highly probable that a
significant reversal in cumulative revenue recognized will not occur when uncertainty is resolved. If a significant
financing component exists in a contract, the transaction price is determined based on the cash price that would have
been paid upon obtaining control. The difference between the transaction price and contract consideration is amortized
over the contract term using the effective interest method; financing components are not considered if the transfer of
control and payment interval is one year or less.
A performance obligation is satisfied over time if one of the following criteria is met; otherwise, it is satisfied at a
point in time:
① The customer simultaneously receives and consumes the benefits provided by the Company's performance as
the Company performs;
② The customer can control the asset as it is created or enhanced during the Company's performance;
③ Goods produced during performance have no alternative use to the Company and the Company has an
enforceable right to payment for performance completed to date throughout the contract period.
For performance obligations satisfied over time, the Company recognizes revenue over time according to the
progress of performance, except where progress cannot be reasonably determined. The Company determines
performance progress using the input method (or output method). When performance progress cannot be reasonably
determined, if incurred costs are expected to be recovered, revenue is recognized to the extent of costs incurred until
progress can be reasonably determined.
For performance obligations satisfied at a point in time, the Company recognizes revenue when the customer
obtains control over the relevant goods. In judging whether the customer has obtained control over goods or services,
the Company considers indicators including:
① The Company has a present right to payment, i.e., the customer has a present obligation to pay;
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
② The Company has transferred legal title of the goods to the customer, i.e., the customer has legal title;
③ The Company has transferred physical possession of the goods to the customer, i.e., the customer has
physical possession;
④ The Company has transferred significant risks and rewards of ownership to the customer, i.e., the customer
has acquired significant risks and rewards of ownership;
⑤ The customer has accepted the goods.
Sales with a Right of Return
For sales with a right of return, when the customer obtains control of the relevant goods, the Company recognizes
revenue based on the amount of consideration to which it expects to be entitled in exchange for transferring the goods,
and recognizes a provision (estimated liability) based on the amount expected to be refunded due to sales returns; at
the same time, an asset (cost of return receivables) is recognized based on the carrying amount of the goods
expected to be returned at transfer, less expected costs to recover those goods (including impairment in value of
returned goods). Cost of sales is carried forward based on the carrying amount of transferred goods less the net
amount of the aforementioned asset cost. At each balance sheet date, the Company re-estimates future sales returns
and remeasures the aforementioned assets and liabilities.
Warranties
The Company provides warranties for goods sold, projects constructed, etc. in accordance with contractual terms
and statutory requirements. For assurance-type warranties assuring that goods sold comply with agreed-upon
specifications, the Company accounts for them in accordance with "CAS 13 — Contingencies". For service-type
warranties that provide a distinct service in addition to assuring compliance with agreed-upon specifications, the
Company treats them as separate performance obligations, allocating a portion of the transaction price based on the
relative standalone selling prices of the goods and the service-type warranty, and recognizing revenue when the
customer obtains control of the service. In assessing whether a warranty provides a distinct service beyond assurance
of compliance with agreed specifications, the Company considers factors such as statutory requirements, warranty
period, and the nature of tasks promised by the Company.
Principal vs. Agent
The Company assesses whether it is a principal or an agent based on whether it controls the specified goods or
services before they are transferred to the customer. If the Company controls the goods or services before transfer to
the customer, it acts as a principal and recognizes revenue at the gross amount of consideration received or
receivable. Otherwise, the Company acts as an agent and recognizes revenue at the amount of fee or commission to
which it expects to be entitled, determined on a net basis after deducting amounts payable to third parties, or based on
predetermined commission amounts or percentages.
Consideration Payable to Customers
Where consideration is payable to a customer, unless it is paid in exchange for a distinct good or service received
from the customer, the Company offsets such payable against the transaction price, reducing current revenue at the
later of when the related revenue is recognized and when the Company pays (or promises to pay) the consideration.
Unexercised Customer Rights (Breakage)
When the Company receives advance payments for goods or services from customers, it first recognizes them as
liabilities and reclassifies them as revenue upon fulfilling the performance obligations. When advance payments are
non-refundable and customers may waive all or part of their contractual rights, if the Company expects to be entitled to
breakage amounts, it recognizes such amounts as revenue in proportion to the pattern of rights exercised by the
customer; otherwise, the Company reclassifies the remaining liability balance to revenue only when the likelihood of
the customer demanding performance of the remaining obligations is remote.
Contract Modifications
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
When contract modifications occur in construction contracts with customers:
standalone selling prices of the additional services, the Company accounts for the contract modification as a separate
contract;
② If not falling under (1) above, and the construction services transferred up to the modification date are distinct
from those not yet transferred, the Company treats the modification as a termination of the original contract and
creates a new contract combining unperformed parts and modified parts;
③ If not falling under (1) above, and the construction services transferred are not distinct from those not yet
transferred, the Company accounts for the modification as part of the existing contract, adjusting current revenue on
the modification date for the cumulative catch-up impact on recognized revenue.
Circumstances Where Similar Businesses Adopt Different Operating Models Involving Different Revenue Recognition
and Measurement Methods
(2) Specific methods
The specific revenue recognition methods of the Company are as follows:
The Company's watch sales business constitutes performance obligations satisfied at a point in time.
A. Online sales
Revenue is recognized when goods are dispatched and acknowledged/signed for by customers, and payments
have been collected by e-commerce platforms.
B. Offline sales
Revenue is recognized when goods are delivered to and accepted by customers, payments have been received
or the right to receive payment has been obtained, and it is probable that associated economic benefits will flow to the
Company.
C. Consignment sales (as consignor)
Under the consignment sales model, the Company recognizes revenue upon receiving sales lists from consignees
and confirming that control over goods has been transferred to purchasers.
D. Commissioned consignment sales (as consignee)
Under the commissioned consignment sales model, the Company recognizes revenue on a net basis when
delivered third-party consignment products to customers and confirming that control has been transferred to buyers.
The Company's precision manufacturing sales business constitutes performance obligations satisfied at a point in
time. Domestic sales revenue is recognized when products are delivered to contractually designated locations and
accepted by customers, payments are received or the right to collect payment is established, and associated
economic benefits are probable to flow to the Company. Export sales revenue is recognized when products are
cleared through customs under contract terms, bills of lading are obtained, payments are received or the right to
collect payment is established, and associated economic benefits are probable to flow to the Company.
For specific accounting policies, please refer to Note V.41 Accounting Treatment with the Company as Lessor.
Contract costs comprise contract performance costs and contract acquisition costs.
Costs incurred by the Company to fulfill a contract are recognized as an asset (contract performance costs) when
all of the following criteria are met:
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
① The cost relates directly to a contract or an anticipated contract, including direct labor, direct materials,
manufacturing overheads (or similar expenses), costs explicitly chargeable to the customer, and other costs incurred
solely because of entering into the contract;
② The cost generates or enhances resources of the Company that will be used in satisfying performance
obligations in the future;
Incremental costs incurred by the Company to obtain a contract are recognized as an asset (contract acquisition
costs) if they are expected to be recovered.
Assets recognized for contract costs are amortized on a systematic basis that is consistent with the transfer to the
customer of the goods or services to which the asset relates; however, if the amortization period of contract acquisition
costs is one year or less, the Company recognizes them in profit or loss when incurred.
An impairment loss is recognized in profit or loss to the extent that the carrying amount of an asset related to
contract costs exceeds the difference between the following two items, with further assessment of whether provisions
for onerous contracts should be recognized:
services to which the asset relates;
If the impairment provision is subsequently reversed, the increased carrying amount of the asset shall not exceed
the carrying amount that would have been determined had no impairment provision been recognized on the reversal
date.
Contract performance costs recognized as assets are presented under "Inventories" if the amortization period at
initial recognition is one year or one normal operating cycle or less, and under "Other non-current assets" if exceeding
one year or one normal operating cycle.
Contract acquisition costs recognized as assets are presented under "Other current assets" if the amortization
period at initial recognition is one year or one normal operating cycle or less, and under "Other non-current assets" if
exceeding one year or one normal operating cycle.
(1) Recognition of government grants
Government grants are recognized only when both of the following conditions are met:
(2) Measurement of government grants
Government grants in monetary assets are measured at the amount received or receivable. Government grants in
non-monetary assets are measured at fair value; if fair value cannot be reliably determined, they are measured at a
nominal amount of RMB 1.
(3) Accounting treatment of government grants
Government grants acquired by the Company for purchasing, constructing, or otherwise forming long-term assets
are classified as asset-related government grants. Asset-related government grants are recognized as deferred
income and recognized in profit or loss on a systematic and rational basis over the useful life of the related asset.
Government grants measured at nominal amounts are directly recognized in current profit or loss. If the related asset
is sold, transferred, scrapped, or damaged before the end of its useful life, the unallocated balance of deferred income
is transferred to profit or loss in the period of asset disposal.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Government grants other than asset-related government grants are classified as income-related government
grants. Income-related government grants are accounted for as follows depending on circumstances:
Grants used to compensate for related costs, expenses, or losses in subsequent periods are recognized as
deferred income and recognized in current profit or loss in the period in which the related costs, expenses, or losses
are recognized;
grants used to compensate for related costs, expenses, or losses already incurred are directly recognized in
current profit or loss.
For government grants containing both asset-related and income-related portions, they are accounted for
separately; if difficult to distinguish, they are classified entirely as income-related government grants.
Government grants related to daily operating activities of the Company are recognized in other income based on
economic substance. Government grants unrelated to daily operating activities are recognized in non-operating
income and expenses.
Where fiscal authorities allocate interest subsidies to lending banks, and lending banks provide loans to the
Company at policy preferential interest rates, the actual loan amount received is recognized as the entry value, with
borrowing costs calculated based on loan principal and preferential rates.
Where fiscal authorities allocate interest subsidies directly to the Company, the Company offsets the subsidies
against relevant borrowing costs.
When a recognized government grant needs to be refunded, if it was offset against the carrying amount of the
related asset upon initial recognition, the asset carrying amount is adjusted; if there is a related deferred income
balance, it is offset against the deferred income balance, and any excess is recognized in current profit or loss; in other
cases, it is recognized directly in current profit or loss.
The Company generally uses the balance sheet liability method to recognize and measure the income tax effects
of taxable temporary differences or deductible temporary differences as deferred income tax liabilities or deferred
income tax assets based on the differences between the carrying amounts of assets and liabilities and their tax bases
at the balance sheet date. The Company does not discount deferred income tax assets and deferred income tax
liabilities.
(1) Recognition of deferred income tax assets
For deductible temporary differences, deductible losses, and tax credits that can be carried forward to subsequent
years, the income tax effect is calculated at the tax rates expected to apply in the period of reversal and recognized as
deferred income tax assets, to the extent that it is probable that future taxable profits will be available against which
the deductible temporary differences, deductible losses, and tax credits can be utilized.
The income tax effect of deductible temporary differences arising from initial recognition of assets or liabilities in
transactions or events possessing both of the following characteristics is not recognized as deferred income tax assets:
A. The transaction is not a business combination;
B. At the time of the transaction, it affects neither accounting profit nor taxable profit (or deductible loss).
However, for single transactions meeting both of the above conditions where initial recognition of assets and
liabilities results in equal taxable and deductible temporary differences, the initial recognition exemption for deferred
income tax liabilities and assets does not apply. For taxable and deductible temporary differences arising from initial
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
recognition of assets and liabilities in such transactions, the Company recognizes corresponding deferred tax liabilities
and assets at transaction occurrence.
For deductible temporary differences related to investments in subsidiaries, associates, and joint ventures, the tax
effect is recognized as deferred tax assets only when both of the following conditions are met:
A. It is probable that the temporary difference will reverse in the foreseeable future;
B. It is probable that taxable profit will be available against which the deductible temporary difference can be
utilized;
At the balance sheet date, if there is solid evidence that sufficient taxable profits will be available in future periods
to utilize deductible temporary differences, previously unrecognized deferred income tax assets are recognized.
At each balance sheet date, the Company reviews the carrying amount of deferred income tax assets. If it is
probable that sufficient taxable profits will not be available in future periods to allow the benefit of deferred income tax
assets to be utilized, the carrying amount of deferred income tax assets is written down. Any such write-down is
reversed to the extent that it becomes probable that sufficient taxable profit will be available.
(2) Recognition of deferred income tax liabilities
All taxable temporary differences of the Company are measured for their tax effects at tax rates expected to apply
in the period of reversal and recognized as deferred income tax liabilities, except for:
as deferred income tax liabilities:
A. Initial recognition of goodwill;
B. Initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of
the transaction, affects neither accounting profit nor taxable profit (or deductible loss).
effect is generally recognized as deferred tax liabilities, except where both of the following conditions are met:
A. The Company is able to control the timing of the reversal of the temporary difference;
B. It is probable that the temporary difference will not reverse in the foreseeable future.
(3) Recognition of deferred tax liabilities or assets involved in specific transactions
For taxable or deductible temporary differences arising from business combinations not under common control,
the recognized deferred tax liabilities or assets and related deferred tax expenses (or income) generally adjust
goodwill recognized in the combination.
② Items directly recognized in owners' equity
Current and deferred income taxes related to transactions or events recognized directly in owners' equity are
recognized in owners' equity. Transactions or events whose temporary difference tax effects are recognized in owners'
equity include: other comprehensive income from fair value changes of other debt investments, adjustments to
beginning retained earnings under retrospective adjustment for accounting policy changes or retrospective
restatement for prior-period errors, and compound financial instruments containing both liability and equity
components recognized in owners' equity at initial recognition.
A. Recoverable tax losses and tax credits arising from the Company's own operations
Deductible losses refer to losses determined in accordance with tax laws that are permitted to be carried forward
to offset taxable profits in subsequent years. Unused tax losses (deductible losses) and tax credits that can be carried
forward under tax laws are treated as deductible temporary differences. When it is probable that sufficient taxable
profits will be available in future periods against which recoverable losses or tax credits can be utilized, corresponding
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
deferred income tax assets are recognized up to the probable taxable profits, reducing income tax expense in current
profit or loss.
B. Deductible unutilized losses of combinees arising from business combinations
In a business combination, deductible temporary differences of the acquiree obtained by the Company that do not
meet deferred tax asset recognition criteria on the acquisition date are not recognized. If, within 12 months after the
acquisition date, new or further information indicates that relevant conditions already existed on the acquisition date
and the economic benefits of deductible temporary differences are expected to be realized, deferred income tax assets
are recognized with a corresponding reduction in goodwill; if goodwill is insufficient, the difference is recognized in
current profit or loss; in circumstances other than the above, deferred income tax assets related to business
combinations are recognized in current profit or loss.
In preparing consolidated financial statements, if temporary differences arise between the carrying amounts of
assets and liabilities in the consolidated balance sheet and their tax bases in individual taxable entities due to
elimination of unrealized internal sales profits/losses, deferred tax assets or liabilities are recognized in the
consolidated balance sheet and income tax expense is adjusted in the consolidated income statement, except for
deferred taxes related to transactions recognized directly in equity or business combinations.
If tax laws permit tax deductions for expenses related to share-based payments, during the period in which costs
and expenses are recognized under accounting standards, the Company estimates the tax-deductible amount based
on information obtained at the end of the accounting period to determine tax bases and resulting temporary differences,
recognizing related deferred tax when recognition criteria are met. If the estimated future tax-deductible amount
exceeds the cumulative costs and expenses recognized under accounting standards, the tax effect of the excess is
recognized directly in owners' equity.
(4) Basis for presenting deferred income tax assets and liabilities on a net basis
The Company presents deferred income tax assets and liabilities on a net basis after offsetting when both of the
following conditions are met:
liabilities on a net basis;
the same taxable entity or different taxable entities which intend either to settle current tax assets and liabilities on a
net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant
amounts of deferred tax assets or liabilities are expected to be reversed.
(1) Accounting treatment of leases as lessee
At the commencement date of the lease, the Company recognizes a lease with a lease term of 12 months or less
and containing no purchase option as a short-term lease; a lease of an underlying asset that is of low value when new
is recognized as a lease of a low-value asset. If the Company subleases or expects to sublease an underlying asset,
the head lease is not recognized as a lease of a low-value asset.
For all short-term leases and low-value asset leases, the Company recognizes lease payments in related asset
costs or current profit or loss on a straight-line basis over each period of the lease term.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Except for short-term leases and low-value asset leases subject to simplified treatment, the Company recognizes
right-of-use assets and lease liabilities at the lease commencement date.
A right-of-use asset refers to a lessee's right to use an underlying asset for the lease term.
At the commencement date, the right-of-use asset is initially measured at cost. This cost comprises:
• The initial measurement amount of the lease liability;
• Lease payments made at or before the commencement date, less any lease incentives received;
• Initial direct costs incurred by the lessee;
• Estimated costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site
on which it is located, or restoring the underlying asset to the condition required by the terms and conditions of the
lease. The Company recognizes and measures such costs according to the criteria and methods for provisions in Note
V.34. Costs incurred to produce inventories are included in the cost of inventories.
Right-of-use assets are depreciated by category using the straight-line method. Where ownership of the
underlying asset is reasonably certain to be obtained at the end of the lease term, the depreciation rate is determined
over the remaining useful life of the underlying asset based on asset category and estimated net residual value rate;
where ownership cannot be reasonably determined to be obtained at lease expiry, depreciation is calculated over the
shorter of the lease term and the remaining useful life based on asset category.
Lease liabilities are initially measured at the present value of lease payments unpaid at the commencement date.
Lease payments include the following five components:
• Fixed payments and in-substance fixed payments, less any lease incentives receivable;
• Variable lease payments that depend on an index or a rate;
• Exercise price of a purchase option, provided that the lessee is reasonably certain to exercise that option;
• Payments for terminating the lease, provided that the lease term reflects the lessee exercising an option to
terminate the lease;
• Amounts expected to be payable by the lessee under residual value guarantees.
In calculating the present value of lease payments, the interest rate implicit in the lease is used as the discount
rate; if that rate cannot be readily determined, the Company's incremental borrowing rate is used. The difference
between lease payments and their present value is treated as unrecognized financing charges, with interest expense
recognized in profit or loss across each period of the lease term using the discount rate determined for discounting
lease payments. Variable lease payments not included in the measurement of lease liabilities are recognized in profit
or loss when actually incurred.
After commencement date, upon changes in in-substance fixed payments, expected amounts payable under
residual value guarantees, indices or rates used to determine payments, or reassessments/actual exercises of
purchase, renewal, or termination options, the Company remeasures lease liabilities at the present value of revised
lease payments and adjusts the carrying amount of right-of-use assets accordingly.
A lease modification is accounted for as a separate lease if both of the following conditions are met: A. The
modification increases the scope of the lease by adding the right to use one or more underlying assets; B. The
consideration for the lease increases by an amount commensurate with the standalone price for the increase in scope
and any appropriate adjustments to that standalone price to reflect the circumstances of the particular contract.
A. The Company as lessee
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
At the effective date of the lease modification, the Company redetermines the lease term and remeasures the
lease liability by discounting the revised lease payments using a revised discount rate. In calculating the present value
of revised payments, the interest rate implicit in the lease for the remainder of the term is used; if that rate cannot be
determined, the lessee's incremental borrowing rate at the effective date of the modification is used.
The effects of lease liability adjustments are accounted for according to the following scenarios:
• If the modification decreases the scope of the lease or shortens the lease term, the carrying amount of the right-
of-use asset is reduced, and gains or losses relating to the partial or full termination of the lease are recognized in
profit or loss;
• For other lease modifications, the carrying amount of the right-of-use asset is adjusted accordingly.
The Company evaluates and determines whether the transfer of an asset in a sale and leaseback transaction
qualifies as a sale in accordance with Note V.37.
The Company as seller (lessee)
If the transfer does not qualify as a sale, the Company continues to recognize the transferred asset and
recognizes a financial liability equal to the transfer proceeds, accounting for the liability in accordance with Note V.11.
If the transfer qualifies as a sale, the Company measures the right-of-use asset arising from the leaseback at the
proportion of the previous carrying amount of the asset that relates to the right of use retained, recognizing only the
amount of any gain or loss that relates to the rights transferred to the lessor.
(2) Accounting treatment of leases as lessor
At the inception date, the Company classifies a lease as a finance lease if it transfers substantially all the risks
and rewards incidental to ownership of an underlying asset; otherwise, it is classified as an operating lease.
The Company recognizes lease receipts from operating leases as rental income on a straight-line basis over each
period of the lease term. Initial direct costs incurred are capitalized, amortized on the same basis as rental income
recognition, and recognized in profit or loss in installments. Variable lease payments received relating to operating
leases that are not included in lease receipts are recognized in profit or loss when actually incurred.
At the commencement date, the Company recognizes finance lease receivables based on the net investment in
the lease (the sum of unguaranteed residual value and lease receipts not received at commencement date discounted
at the interest rate implicit in the lease) and derecognizes the finance lease asset. Over each period of the lease term,
the Company calculates and recognizes interest income using the interest rate implicit in the lease.
Variable lease payments received that are not included in the measurement of the net investment in the lease are
recognized in profit or loss when actually incurred.
A lease modification is accounted for as a separate lease if both of the following conditions are met: A. The
modification increases the scope of the lease by adding the right to use one or more underlying assets; B. The
consideration for the lease increases by an amount commensurate with the standalone price for the increase in scope
and any appropriate adjustments to that standalone price to reflect the circumstances of the particular contract.
B. The Company as lessor
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Where an operating lease is modified, the Company accounts for it as a new lease from the effective date of the
modification, treating advances or receivables relating to the original lease as receipts for the new lease.
If a finance lease modification is not accounted for as a separate lease, the Company treats the modified lease as
follows: if the lease would have been classified as an operating lease had the modification been effective at inception,
the Company accounts for it as a new lease from the effective date of modification, measuring the asset's carrying
amount at the net investment in the lease immediately before modification; if the lease would have been classified as a
finance lease had the modification been effective at inception, the Company accounts for it in accordance with
provisions on contractual amendments or renegotiations.
The Company evaluates and determines whether the transfer of an asset in a sale and leaseback transaction
qualifies as a sale in accordance with Note V.37.
If the transfer of an asset in a sale and leaseback transaction does not qualify as a sale, the Company does not
recognize the transferred asset, but recognizes a financial asset equal to the transfer amount, accounting for it under
Note V.11. If the transfer qualifies as a sale, the Company accounts for the purchase of the asset in accordance with
applicable CAS and accounts for the lease of the asset.
Not applicable
(1) Changes in significant accounting policies
Not applicable
(2) Changes in significant accounting estimates
Not applicable
(3) Adjustments to relevant financial statement items at the beginning of the year of first adoption of new
accounting standards starting from 2026
Not applicable
Not applicable
VI. Taxes
Tax Category Tax Basis Tax Rate
Output VAT is calculated at 5%, 6%, 9%, or 13%
Value-added tax Taxable revenue
of sales and paid after deducting allowable input
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(VAT) VAT
Taxable sales value and quantity of
Consumption tax 20%
luxury watches
Urban maintenance
Turnover taxes payable 5%, 7%
and construction tax
Enterprise income
Taxable income See the table below
tax (EIT)
Property tax 1.2%, 12%
tax basis
Disclosure of Taxable Entities with Different Enterprise Income Tax Rates
Name of Taxable Entity Income Tax Rate
FIYTA Precision Technology Co., Ltd. 25%
Shenzhen Harmony World Watch Center Co., Ltd. (①) 25%
FIYTA Sales Co., Ltd. (①) 25%
Shenzhen FIYTA Precision Technology Co., Ltd. (②) 15%
Shenzhen FIYTA Technology Development Co., Ltd. (②) 15%
Harmony World Watch Center (Hainan) Co., Ltd. (⑤) 20%
Shenzhen Xunhang Precision Technology Co., Ltd. 25%
Emile Chouriet Horlogerie (Shenzhen) Co., Ltd. 25%
Liaoning Hengdarui Commercial & Trade Co., Ltd. 25%
Shiyuehui Boutique (Shenzhen) Co., Ltd. 25%
Shenzhen Harmony E-Commerce Co., Ltd. (⑤) 20%
FIYTA (Hong Kong) Limited (③) 16.5%
Montres Chouriet SA (④) 30%
Note: ① In accordance with the "Interim Measures for the Administration of Collection of Enterprise Income Tax for
Cross-Regional Consolidated Taxpaying Enterprises" issued by the State Taxation Administration, the headquarters
and branch offices of these companies implement the consolidated EIT payment method of "unified calculation,
hierarchical management, local prepayment, consolidated settlement, and fiscal treasury adjustment". 50% is allocated
and prepaid among branch offices, and 50% is allocated and prepaid by the head office;
② These companies enjoy the preferential enterprise income tax rate reduction for "High-tech Enterprises Supported
by the State";
③ The company is registered in Hong Kong and subject to Hong Kong profits tax, with an applicable tax rate of
④ The company is registered in Switzerland, and according to the local tax rates of its domicile, the comprehensive
effective tax rate this year is 30%;
⑤ These companies are small and micro-sized enterprises and pay enterprise income tax at a rate of 20%.
According to the "Enterprise Income Tax Law of the People's Republic of China", high-tech enterprises supported
by the state are subject to a reduced EIT rate of 15%. The Company's subsidiary Shenzhen FIYTA Precision
Technology Co., Ltd. was recognized as a High-tech Enterprise in 2024 (Certificate No.: GR202444200965, valid for 3
years) and was subject to an EIT rate of 15% from 2024 to 2026; the Company's subsidiary Shenzhen FIYTA
Technology Development Co., Ltd. was recognized as a High-tech Enterprise in 2025 (Certificate No.:
GR202544201002, valid for 3 years) and is subject to an EIT rate of 15% from 2025 to 2027.
Pursuant to the "Announcement of the Ministry of Finance and the State Taxation Administration on Preferential
Income Tax Policies for Small and Micro Enterprises and Individual Industrial and Commercial Households" (Cai Shui
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
[2023] No. 6), the taxable income of small and micro enterprises is calculated at a reduced rate of 25%, and enterprise
income tax is paid at a rate of 20%.
Pursuant to the "Notice of the Ministry of Finance and the State Taxation Administration on Extending the Loss
Carryforward Period for High-tech Enterprises and Science and Technology SMEs" (Cai Shui [2018] No. 76), starting
from January 1, 2018, unrecovered losses incurred in the 5 accounting years prior to obtaining high-tech enterprise
qualification are allowed to be carried forward to subsequent years, with the maximum carryforward period extended
from 5 years to 10 years.
Pursuant to the "Announcement of the Ministry of Finance and the State Taxation Administration on Further
Improving the Policy for Pre-tax Super Deduction of R&D Expenses" (Cai Shui [2023] No. 7), for actual R&D expenses
incurred by enterprises that do not form intangible assets and are included in current profit or loss, an extra 100% of
the actual amount incurred is deducted before tax starting from January 1, 2023, on top of actual deductions; for those
forming intangible assets, they are amortized before tax at 200% of the intangible asset cost starting from January 1,
Starting from 2019, Hong Kong implemented a two-tiered profits tax rate regime, under which the profits tax rate
for the first HKD 2 million of assessable profits for Hong Kong companies is reduced to 8.25%, with remaining profits
taxed at 16.5%.
Not applicable
VII. Notes to Items in Consolidated Financial Statements
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 32,057.42 34,041.22
Bank deposits 29,624,741.68 75,156,082.51
Other monetary funds 2,419,704.68 3,489,741.96
Funds deposited in finance
companies
Total 657,780,338.81 631,239,039.65
Including: Total funds deposited
overseas
Other Notes
Note 1: Funds deposited in finance companies mainly represent funds deposited in AVIC Finance;
Note 2: As of June 30, 2026, the Company had no funds pledged, frozen, or subject to potential recovery risks.
The details of funds deposited overseas with restricted repatriation are as follows:
Item Ending balance Beginning balance
Funds deposited overseas with restricted
repatriation
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Not applicable
Not applicable
(1) Classification of notes receivable
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bills 3,396,993.79 3,665,974.22
Commercial acceptance bills 11,782,658.85 9,951,213.33
Total 15,179,652.64 13,617,187.55
(2) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Gross carrying Gross carrying
Categor Bad debt provision Carryin Bad debt provision Carryin
amount amount
y g g
Proporti Provisio amount Proporti Provisio amount
Amount Amount Amount Amount
on n ratio on n ratio
Includin
g:
Notes
receiva
ble with
bad
debt
provisio 3.92% 3.70%
n
accrued
on a
portfolio
basis
Includin
g:
Comme
rcial
accepta 78.50% 5.00% 74.08% 5.00%
nce bills
portfolio
Bank
accepta 3,396,9 3,396,9 3,665,9 3,665,9
nce bills 93.79 93.79 74.22 74.22
portfolio
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Total 3.92% 3.70%
Category of bad debt provision on a portfolio basis: Commercial acceptance bills portfolio
Unit: RMB
Ending balance
Name
Gross carrying amount Bad debt provision Provision ratio
Commercial acceptance
bills portfolio
Total 12,402,798.78 620,139.93
Basis for determining the portfolio: Receivables of the same type share similar credit risk characteristics.
Category of bad debt provision on a portfolio basis: Bank acceptance bills portfolio
Unit: RMB
Ending balance
Name
Gross carrying amount Bad debt provision Provision ratio
Bank acceptance bills
portfolio
Total 3,396,993.79 0.00
Basis for determining the portfolio: The issuers have high credit ratings, have had no historical bill defaults, present
extremely low credit loss risk, and possess strong capacity to meet contractual cash flow payment obligations in the
short term.
If the general expected credit loss model is adopted for notes receivable bad debt provision:
Not applicable
(3) Bad debt provision accrued, recovered, or reversed in current period
Accrual of bad debt provisions in current period:
Unit: RMB
Amount changed in current period
Beginning Ending
Category Recovered or
balance Accrued Written off Other balance
reversed
Notes
receivable
with bad debt
provision
accrued on an
individual
basis
Notes
receivable
with bad debt
provision
accrued on a
portfolio basis
Including:
Commercial
acceptance
bills portfolio
Bank
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
acceptance
bills portfolio
Total 523,748.07 96,391.86 620,139.93
Including significant recoveries or reversals of bad debt provisions in current period:
Not applicable
(4) Notes receivable pledged by the Company at the end of the period
Not applicable
(5) Notes receivable endorsed or discounted but not yet matured at the balance sheet date
Not applicable
(6) Notes receivable actually written off in current period
Not applicable
(1) Disclosure by aging
Unit: RMB
Aging Ending gross carrying amount Beginning gross carrying amount
Within 1 year (inclusive) 272,323,170.38 260,899,769.98
Over 3 years 9,668,485.22 9,567,138.57
Over 5 years 7,743,657.80 7,188,150.31
Total 287,692,297.57 274,556,500.34
(2) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Gross carrying Gross carrying
Categor Bad debt provision Carryin Bad debt provision Carryin
amount amount
y g g
Proporti Provisio amount Proporti Provisio amount
Amount Amount Amount Amount
on n ratio on n ratio
Account
s
receiva 14,573, 14,281, 292,020 15,766, 15,433, 332,995
ble with 270.71 250.02 .69 982.49 987.23 .26
bad
debt
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
provisio
n
accrued
on an
individu
al basis
Includin
g:
Account
s
receiva
ble with
bad
debt 273,119 9,120,5 263,998 258,789 9,253,9 249,535
provisio ,026.86 69.56 ,457.30 ,517.85 72.17 ,545.68
n
accrued
on a
portfolio
basis
Includin
g:
Receiva
bles
from 273,119 9,120,5 263,998 258,789 9,253,9 249,535
custom ,026.86 69.56 ,457.30 ,517.85 72.17 ,545.68
ers
portfolio
Total 8.13% 8.99%
,297.57 % 819.58 ,477.99 ,500.34 % 959.40 ,540.94
Category of individual bad debt provision: Receivables from customers
Unit: RMB
Beginning balance Ending balance
Name Gross carrying Bad debt Gross carrying Bad debt Provision Reason for
amount provision amount provision ratio provision
Commercial
Receivables disputes, poor
from 15,766,982.49 15,433,987.23 14,573,270.71 14,281,250.02 98.00% customer
customers operations,
etc.
Total 15,766,982.49 15,433,987.23 14,573,270.71 14,281,250.02
Category of portfolio bad debt provision: Receivables from customers portfolio
Unit: RMB
Ending balance
Name
Gross carrying amount Bad debt provision Provision ratio
Receivables from
customers portfolio
Total 273,119,026.86 9,120,569.56
Basis for determining the portfolio: Receivables of the same type share similar credit risk characteristics.
If the general expected credit loss model is adopted for accounts receivable bad debt provision:
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Not applicable
(3) Bad debt provision accrued, recovered, or reversed in current period
Accrual of bad debt provisions in current period:
Unit: RMB
Amount changed in current period
Beginning
Category Recovered or Ending balance
balance Accrued Written off Other
reversed
Accounts
receivable
with ECL
accrued on an
individual
basis
Accounts
receivable
with ECL 9,253,972.17 -118,024.55 -15,378.06 9,120,569.56
accrued on a
portfolio basis
Total 24,687,959.40 119,131.77 1,389,893.53 -15,378.06 23,401,819.58
Including significant recoveries or reversals of bad debt provisions in current period:
Not applicable
(4) Accounts receivable actually written off in current period
Not applicable
(5) Top five accounts receivable and contract assets grouped by debtor at period-end
Unit: RMB
Ending balance
Proportion of
of accounts
Ending balance total ending
Ending balance Ending balance receivable bad
of accounts balance of
Entity Name of accounts of contract debt provision
receivable and accounts
receivable assets and contract
contract assets receivable and
asset impairment
contract assets
provision
Summary of top
five accounts
receivable
ending balances
Total 76,226,406.11 76,226,406.11 26.50% 3,811,320.31
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Not applicable
Unit: RMB
Item Ending balance Beginning balance
Other receivables 55,463,903.88 51,040,153.19
Total 55,463,903.88 51,040,153.19
(1) Interest receivable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
(2) Dividends receivable
Not applicable
Not applicable
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Not applicable
Not applicable
(3) Other receivables
Unit: RMB
Nature of payment Ending gross carrying amount Beginning gross carrying amount
Deposits and security deposits 49,934,260.20 49,507,243.06
Employee petty cash 2,215,776.38 941,768.76
Other 10,455,237.05 7,657,685.25
Total 62,605,273.63 58,106,697.07
Unit: RMB
Aging Ending gross carrying amount Beginning gross carrying amount
Within 1 year (inclusive) 59,901,246.28 54,498,112.58
Over 3 years 1,541,021.53 1,446,064.90
Over 5 years 1,278,954.90 1,159,704.90
Total 62,605,273.63 58,106,697.07
Unit: RMB
Ending balance Beginning balance
Gross carrying Gross carrying
Categor Bad debt provision Carryin Bad debt provision Carryin
amount amount
y g g
Proporti Provisio amount Proporti Provisio amount
Amount Amount Amount Amount
on n ratio on n ratio
Accrue
d on an 4,425,2 4,425,2 100.00 4,415,2 4,415,2 100.00
individu 61.16 61.16 % 41.16 41.16 %
al basis
Including:
Accrue 58,180, 2,716,1 55,463, 53,691, 2,651,3 51,040,
d on a 012.47 08.59 903.88 455.91 02.72 153.19
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
portfolio
basis
Including:
Deposit
s and
security 48,910, 2,493,8 46,416, 48,443, 2,453,3 45,990,
deposit 811.67 78.09 933.58 814.53 08.64 505.89
s
portfolio
Employ
ee petty 2,182,0 2,182,0 908,012 908,012
cash 20.58 20.58 .96 .96
portfolio
Other
receiva 7,087,1 222,230 6,864,9 4,339,6 197,994 4,141,6
bles 80.22 .50 49.72 28.42 .08 34.34
portfolio
Total 11.41% 12.16%
Category of individual bad debt provision: Other receivables
Unit: RMB
Beginning balance Ending balance
Name Gross Gross
Bad debt Bad debt Reason for
carrying carrying Provision ratio
provision provision provision
amount amount
Other
receivables
Total 4,415,241.16 4,415,241.16 4,425,261.16 4,425,261.16
Category of portfolio bad debt provision: Deposits and security deposits portfolio
Unit: RMB
Ending balance
Name
Gross carrying amount Bad debt provision Provision ratio
Deposits and security
deposits portfolio
Total 48,910,811.67 2,493,878.09
Basis for determining the portfolio: Receivables of the same nature share similar credit risk characteristics.
Category of portfolio bad debt provision: Employee petty cash portfolio
Unit: RMB
Ending balance
Name
Gross carrying amount Bad debt provision Provision ratio
Employee petty cash
portfolio
Total 2,182,020.58 0.00
Basis for determining the portfolio: Receivables of the same nature share similar credit risk characteristics.
Category of portfolio bad debt provision: Other receivables portfolio
Unit: RMB
Ending balance
Name
Gross carrying amount Bad debt provision Provision ratio
Other receivables portfolio 7,087,180.22 222,230.50 3.14%
Total 7,087,180.22 222,230.50
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Basis for determining the portfolio: Receivables of the same nature share similar credit risk characteristics.
Bad debt provision accrued under the general expected credit loss model:
Unit: RMB
Stage 1 Stage 2 Stage 3
Bad debt provision Lifetime expected Lifetime expected Total
credit losses (not credit losses (credit-
credit losses
credit-impaired) impaired)
Balance as of
January 1, 2026
Balance as of
January 1, 2026 in
current period
-- Transfer to Stage 2
-- Transfer to Stage 3
-- Reverse to Stage 2
-- Reverse to Stage 1
Accrual in current
period
Reversal in current
period
Other changes -616.19 -616.19
Balance as of June
Basis for stage division and bad debt provision accrual ratios
Stage 1 represents bad debt provisions for other receivables aged within 1 year; Stage 2 represents bad debt
provisions for other receivables aged over 1 year without individual assessment; Stage 3 represents bad debt
provisions accrued on an individual assessment basis.
Significant changes in gross carrying amounts affecting changes in loss allowances
Not applicable
Accrual of bad debt provisions in current period:
Unit: RMB
Amount changed in current period
Beginning Ending
Category Recovered or
balance Accrued Write-off Other balance
reversed
Bad debt
provision
Total 7,066,543.88 75,822.06 380.00 -616.19 7,141,369.75
Including significant reversals or recoveries of bad debt provisions in current period:
Not applicable
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Unit: RMB
Proportion of
Ending balance
Nature of total ending
Entity Name Ending balance Aging of bad debt
payment balance of other
provision
receivables
First Other 2,650,000.00 Within 1 year 4.23% 2,650,000.00
Deposits and
Second 1,925,263.00 Within 1 year 3.08% 96,263.15
security deposits
Deposits and
Third 1,702,620.00 Within 1 year 2.72% 85,131.00
security deposits
Deposits and
Fourth 1,594,477.50 Within 1 year 2.55% 79,723.88
security deposits
Deposits and
Fifth 1,281,330.00 Within 1 year 2.05% 64,066.50
security deposits
Total 9,153,690.50 14.62% 2,975,184.53
Not applicable
(1) Presentation of prepayments by aging
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 26,452,620.03 100.00% 4,912,759.05 100.00%
Over 3 years 0.00 0.00% 0.00 0.00%
Total 26,452,620.03 4,912,759.05
Explanation of reasons for non-settlement of significant prepayments aged over 1 year:
Not applicable
(2) Top five prepayments grouped by payee at period-end
The aggregated ending balance of the top five prepayments grouped by payee in the current period was RMB
Whether the Company needs to comply with real estate industry disclosure requirements
No
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(1) Classification of inventories
Unit: RMB
Ending balance Beginning balance
Provision for Provision for
inventory inventory
Item depreciation Gross depreciation
Gross carrying Carrying Carrying
or contract carrying or contract
amount amount amount
performance amount performance
cost cost
impairment impairment
Raw 105,910,909.2 123,474,829.5 113,564,775.7
materials 2 9 3
Work in
progress
Merchan
dise
inventory 1,350,237,258 1,700,030,073 1,606,956,025
/ .64 .29 .65
Finished
goods
Total 1,540,379,302.04 77,879,019.90
.14 .16 0 .66
(2) Data resources recognized as inventories
Not applicable
(3) Provision for inventory depreciation and contract performance cost impairment
Unit: RMB
Increase in current
Decrease in current period
Beginning period
Item Ending balance
balance Reversal or write-
Accrued Other Other
off
Raw materials 9,910,053.86 170,167.13 9,739,886.73
Merchandise
inventory /
Finished
goods
Total 102,984,101.50 24,698,986.29 406,095.31 77,879,019.90
Provision for inventory depreciation accrued on a portfolio basis
Not applicable
(4) Description of capitalized borrowing costs in ending inventory balances
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(5) Description of contract performance costs amortized in current period
Not applicable
Not applicable
Not applicable
(1) Debt investments due within one year
Not applicable
(2) Other debt investments due within one year
Not applicable
Unit: RMB
Item Ending balance Beginning balance
Reclassification of debit VAT balance 51,005,107.59 47,303,261.96
Certificates of deposit 73,122,285.72 0.00
Prepaid taxes and surcharges 5,120,414.75 5,517,052.75
Other 8,844,687.97 13,690,557.92
Total 138,092,496.03 66,510,872.63
Not applicable
Not applicable
Not applicable
(1) Long-term receivables overview
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(2) Disclosure by bad debt provision method
Not applicable
(3) Bad debt provision accrued, recovered, or reversed in current period
Not applicable
(4) Long-term receivables actually written off in current period
Not applicable
Unit: RMB
Changes in current period
Begin Begin Invest Endin Endin
ning ning ment Other g g
balan balan incom compr Cash Impair balan balan
Invest ce ce of Additi Invest e/loss ehens Other divide ment ce ce of
ee (carryi impair onal ment recog ive equity nds or provisi (carryi impair
Other
ng ment invest reduct nized incom chang profits on ng ment
amou provisi ment ion under e es declar accru amou provisi
nt) on equity adjust ed ed nt) on
metho ments
d
I. Joint ventures
II. Associates
Shang
hai 46,43 46,67
Watch 6,556. 2,153.
Co., 86 60
Ltd.
Subtot 235,5
al 96.74
Total 6,556. 2,153.
Recoverable amount determined at fair value less costs of disposal
Not applicable
Recoverable amount determined at present value of estimated future cash flows
Not applicable
Reasons for significant discrepancies between the above information and information used in prior years' impairment
tests or external information
Not applicable
Reasons for significant discrepancies between information used in prior years' impairment tests and actual current-
year conditions
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Other Notes
Not applicable
Not applicable
(1) Investment properties measured under the cost model
Unit: RMB
Buildings and Construction in
Item Land use rights Total
structures progress
I. Original carrying
amount
period
(1) Purchase
(2) Transferred from
inventories / fixed
assets / construction
in progress
(3) Increase from
business
combination
current period
(1) Disposal
(2) Other transfers
out
(3) Transferred to
fixed assets
II. Accumulated
depreciation and
accumulated
amortization
period
(1) Accrual or
amortization
(2) Transferred from
fixed assets
current period
(1) Disposal
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(2) Other transfers
out
(3) Transferred to
fixed assets
III. Impairment
provision
period
(1) Accrual
current period
(1) Disposal
(2) Other transfers
out
IV. Carrying amount
amount
amount
Recoverable amount determined at fair value less costs of disposal
Not applicable
Recoverable amount determined at present value of estimated future cash flows
Not applicable
Reasons for significant discrepancies between the above information and information used in prior years' impairment
tests or external information
Not applicable
Reasons for significant discrepancies between information used in prior years' impairment tests and actual current-
year conditions
Not applicable
Other Notes
Not applicable
(2) Investment properties measured under the fair value model
Not applicable
(3) Transferred to investment properties and measured at fair value
Not applicable
(4) Investment properties without property title certificates
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 337,417,287.88 343,353,998.15
Disposal of fixed assets 0.00 0.00
Total 337,417,287.88 343,353,998.15
(1) Fixed assets breakdown
Unit: RMB
Machinery
Buildings and Transportation Electronic Other
Item and Total
structures equipment equipment equipment
equipment
I. Original
carrying
amount:
balance 8 5 1
current period
(1) Acquisition 5,445,754.48 16,479.96 2,490,641.91 634,245.50 8,587,121.85
(2)
Transferred
from
construction in
progress
(3) Increase
from business
combination
(4)
Transferred
back from
investment
properties
(5) Translation
differences of
foreign
currency
statements
current period
(1) Disposal
or retirement
(2)
Transferred to
investment
properties
(3) Translation
differences of
foreign
currency
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
statements
balance 9 9 5
II.
Accumulated
depreciation
balance 8 6
current period
(1) Accrual 7,379,281.95 3,554,416.79 53,084.29 1,708,421.84 549,537.47 13,244,742.34
(2)
Transferred
back from
investment
properties
(3) Translation
differences of
foreign
currency
statements
current period
(1) Disposal
or retirement
(2)
Transferred to
investment
properties
(3) Translation
differences of
foreign 2,341,608.12 1,408,410.50 42,757.80 127,012.27 3,919,788.69
currency
statements
balance 7 1 7
III. Impairment
provision
balance
current period
(1) Accrual
current period
(1) Disposal
or retirement
balance
IV. Carrying
amount
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
carrying 2 8
amount
carrying 41,544,351.60 136,740.02 11,858,820.42 4,612,658.11
amount
(2) Temporarily idle fixed assets
Not applicable
(3) Fixed assets leased out under operating leases
Not applicable
(4) Fixed assets without property title certificates
Unit: RMB
Reason for title certificates not yet
Item Carrying amount
completed
Buildings and structures 150,453.94 Defects in property rights
(5) Impairment tests of fixed assets
Not applicable
(6) Disposal of fixed assets
Not applicable
(1) Construction in progress overview
Not applicable
(2) Changes in major construction in progress projects during current period
Not applicable
(3) Impairment provisions accrued for construction in progress during current period
Not applicable
(4) Impairment tests of construction in progress
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(5) Engineering materials
Not applicable
(1) Productive biological assets measured under the cost model
Not applicable
(2) Impairment tests of productive biological assets measured under the cost model
Not applicable
(3) Productive biological assets measured under the fair value model
Not applicable
Not applicable
(1) Breakdown of right-of-use assets
Unit: RMB
Item Buildings and structures Total
I. Original carrying amount
(1) Lease 35,107,980.23 35,107,980.23
(1) Disposal 59,092,725.61 59,092,725.61
(2) Translation differences of foreign
currency statements
II. Accumulated depreciation
(1) Accrual 42,251,023.88 42,251,023.88
(2) Translation differences of foreign
currency statements
(1) Disposal 55,496,801.21 55,496,801.21
III. Impairment provision
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(1) Accrual
(1) Disposal
IV. Carrying amount
(2) Impairment tests of right-of-use assets
Not applicable
(1) Breakdown of intangible assets
Unit: RMB
Land use Non-patent Software Trademark
Item Patents Total
rights technology systems rights
I. Original
carrying
amount
balance
current period
(1) Acquisition 637,672.77 637,672.77
(2) Internal
R&D
(3) Increase
from business
combination
(4) Translation
differences of
foreign
currency
statements
current period
(1) Disposal
(2) Translation
differences of
foreign 15,762.40 0.46 15,762.86
currency
statements
balance
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
II.
Accumulated
amortization
balance
current period
(1) Accrual 366,776.65 1,054,451.09 7,383.44 1,428,611.18
current period
(1) Disposal
(2) Translation
differences of
foreign 6,304.96 6,304.96
currency
statements
balance
III. Impairment
provision
balance
current period
(1) Accrual
current period
(1) Disposal
balance
IV. Carrying
amount
carrying 15,850,463.88 8,777,312.61 6,292,571.24 30,920,347.73
amount
carrying 16,217,240.53 9,203,548.37 6,299,955.14 31,720,744.04
amount
Proportion of intangible assets formed through internal R&D to ending intangible asset balance: 0.00%
(2) Data resources recognized as intangible assets
Not applicable
(3) Land use rights without title certificates
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(4) Impairment tests of intangible assets
Not applicable
(1) Original carrying amount of goodwill
Not applicable
(2) Provision for goodwill impairment
Not applicable
(3) Relevant information of asset group or portfolio containing goodwill
Not applicable
(4) Specific determination method of recoverable amounts
Not applicable
(5) Fulfillment of performance commitments and corresponding goodwill impairment
Not applicable
Unit: RMB
Beginning Increase in Amortization in
Item Other decreases Ending balance
balance current period current period
Decoration and
shop counter
construction
expenses
Other 12,942,569.01 2,615,544.98 3,101,463.78 12,456,650.21
Total 89,174,269.50 9,946,294.22 29,662,632.46 507,115.39 68,950,815.87
(1) Un-offset deferred income tax assets
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Asset impairment
provisions
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Unrealized profits
from internal 48,833,283.15 11,930,325.18 73,681,954.31 17,864,553.33
transactions
Deductible losses 266,996,150.00 57,569,144.35 203,464,885.90 45,249,255.22
Advertising and
publicity expenses
deductible in
subsequent years
Lease liabilities 69,456,113.89 17,364,028.48 74,789,934.31 18,697,483.59
Other 4,233,830.22 1,058,457.55 5,030,696.54 1,248,681.80
Total 504,016,653.37 114,030,571.26 480,361,046.21 111,439,499.18
(2) Un-offset deferred income tax liabilities
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Deferred income Taxable temporary Deferred income tax
differences tax liabilities differences liabilities
One-time pre-tax
deduction of fixed assets
Right-of-use assets 68,612,775.52 17,153,193.88 72,643,762.42 18,160,940.61
Total 96,565,698.92 21,346,132.39 99,813,698.10 22,236,430.95
(3) Deferred income tax assets or liabilities presented on a net basis
Unit: RMB
Offset amount of Net ending balance Offset amount of Net beginning
deferred tax assets of deferred tax deferred tax assets balance of deferred
Item
and liabilities at assets or liabilities and liabilities at tax assets or
period-end after offset beginning of period liabilities after offset
Deferred income tax
assets
Deferred income tax
liabilities
(4) Details of unrecognized deferred income tax assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary differences 10,582,452.38 11,868,777.70
Deductible losses 0.00 0.00
Total 10,582,452.38 11,868,777.70
(5) Deductible losses of unrecognized deferred tax assets expiring in subsequent years
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Unit: RMB
Ending balance Beginning balance
Item Gross carrying Impairmen Carrying Gross carrying Impairment Carrying
amount t provision amount amount provision amount
Prepayments
for long-term 171,008,639.08 171,008,639.08 5,757,347.81 5,757,347.81
assets
Total 171,008,639.08 171,008,639.08 5,757,347.81 5,757,347.81
Not applicable
(1) Classification of short-term borrowings
Not applicable
(2) Overdue outstanding short-term borrowings
Not applicable
Not applicable
Not applicable
Not applicable
(1) Presentation of accounts payable
Unit: RMB
Item Ending balance Beginning balance
Payables for goods 68,846,072.91 94,791,440.02
Total 68,846,072.91 94,791,440.02
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(2) Significant accounts payable aged over 1 year or overdue
Not applicable
Unit: RMB
Item Ending balance Beginning balance
Other payables 78,195,511.10 75,141,232.27
Total 78,195,511.10 75,141,232.27
(1) Interest payable
Not applicable
(2) Dividends payable
Not applicable
(3) Other payables
Unit: RMB
Item Ending balance Beginning balance
Deposits and security deposits 28,985,384.66 28,070,048.35
Decoration payables 3,595,389.05 3,524,465.97
Accrued expenses and other
payables
Total 78,195,511.10 75,141,232.27
Not applicable
(1) Presentation of advances from customers
Unit: RMB
Item Ending balance Beginning balance
Rental advances 7,051,846.87 11,368,005.63
Total 7,051,846.87 11,368,005.63
(2) Significant advances from customers aged over 1 year or overdue
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Unit: RMB
Item Ending balance Beginning balance
Advances received for goods 18,121,608.21 16,450,934.50
Total 18,121,608.21 16,450,934.50
Significant contract liabilities aged over 1 year
Not applicable
Amounts and reasons for significant changes in carrying amounts during reporting period
Not applicable
(1) Presentation of employee benefits payable
Unit: RMB
Increased in current Decrease in current
Item Beginning balance Ending balance
period period
I. Short-term
employee benefits
II. Post-employment
benefits - Defined 7,642,994.24 22,650,044.70 24,459,412.03 5,833,626.91
contribution plans
III. Termination
benefits
Total 80,059,217.82 249,502,670.32 265,283,139.81 64,278,748.33
(2) Presentation of short-term employee benefits
Unit: RMB
Increased in current Decrease in current
Item Beginning balance Ending balance
period period
allowances, and 66,563,202.49 199,846,803.10 209,868,028.77 56,541,976.82
subsidies
expenses
premiums
Including: Medical
insurance premiums
Work-related injury
insurance premiums
Maternity insurance
premiums
funds
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
costs and employee
education funds
Total 67,568,251.00 224,189,841.22 234,035,826.57 57,722,265.65
(3) Presentation of defined contribution plans
Unit: RMB
Increased in current Decrease in current
Item Beginning balance Ending balance
period period
insurance
insurance premiums
contributions
Total 7,642,994.24 22,650,044.70 24,459,412.03 5,833,626.91
Unit: RMB
Item Ending balance Beginning balance
Value-added tax (VAT) 27,745,887.68 24,404,139.24
Enterprise income tax (EIT) 16,639,669.59 12,878,070.87
Individual income tax 717,830.57 969,315.24
Urban maintenance and construction
tax
Educational surcharges 476,950.35 316,181.96
Other 3,809,182.79 1,177,277.66
Total 50,056,542.45 40,198,014.04
Not applicable
Unit: RMB
Item Ending balance Beginning balance
Lease liabilities due within one year 48,155,286.06 57,044,492.54
Total 48,155,286.06 57,044,492.54
Unit: RMB
Item Ending balance Beginning balance
Output VAT to be transferred 1,870,242.74 2,392,725.11
Total 1,870,242.74 2,392,725.11
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Changes in short-term bonds payable:
Not applicable
(1) Classification of long-term borrowings
Not applicable
(1) Bonds payable
Not applicable
(2) Changes in bonds payable (excluding preferred shares, perpetual bonds, and other
financial instruments classified as financial liabilities)
Not applicable
(3) Explanation of convertible corporate bonds
Not applicable
(4) Explanation of other financial instruments classified as financial liabilities
Not applicable
Unit: RMB
Item Ending balance Beginning balance
Buildings and structures 63,976,001.44 76,851,971.25
Unrecognized financing charges -1,084,251.20 -1,915,088.40
Lease liabilities due within one year -48,155,286.06 -57,044,492.54
Total 14,736,464.18 17,892,390.31
Not applicable
(1) Presentation of long-term payables by nature
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(2) Special payables
Not applicable
(1) Statement of long-term employee benefits payable
Not applicable
(2) Changes in defined benefit plans
Not applicable
Not applicable
Not applicable
Not applicable
Unit: RMB
Changes during current period (+, -)
Beginning Conversion
Issuance of Bonus of capital Ending balance
balance Other Subtotal
new shares shares reserve into
shares
Total
number 405,764,007.00 0.00 0.00 0.00 0.00 0.00 405,764,007.00
of shares
(1) Basic information on preferred shares, perpetual bonds, and other financial instruments outstanding at
period-end
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(2) Statement of changes in preferred shares, perpetual bonds, and other financial instruments outstanding at
period-end
Not applicable
Unit: RMB
Increased in current Decrease in current
Item Beginning balance Ending balance
period period
Capital premium
(share premium)
Other capital reserve 14,005,517.97 0.00 0.00 14,005,517.97
Total 935,609,251.94 0.00 0.00 935,609,251.94
Other notes, including changes in current period and reasons for changes:
Not applicable
Not applicable
Unit: RMB
Amount incurred in current period
Less: Less:
Amount Net-of-tax Net-of-tax
Reclassifi Reclassifi
Beginning before Less: amount amount Ending
Item cation of cation of
balance income Income attributabl attributabl balance
previous previous
tax in tax e to e to non-
OCI into OCI into
current expense parent controlling
profit or retained
period company interests
loss earnings
I. Other
comprehe
nsive
income
that
cannot be
reclassifie
d to profit
or loss
Including:
Changes
in
remeasur
ement of
defined
benefit
plans
Other
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
comprehe
nsive
income
that
cannot be
transferre
d to profit
or loss
under
equity
method
Fair
value
changes
of other
equity
instrument
investmen
ts
Fair
value
changes
of
enterprise'
s own
credit risk
II. Other
comprehe
nsive
- -
income 23,665,21 14,994,78
that will be 7.37 4.98
reclassifie
d to profit
or loss
Including:
Other
comprehe
nsive
income
that can
be
transferre
d to profit
or loss
under
equity
method
Fair
value
changes
of other
debt
investmen
ts
Amou
nt of
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
financial
assets
reclassifie
d into
other
comprehe
nsive
income
Credit
impairmen
t
provisions
for other
debt
investmen
ts
Cash
flow
hedge
reserve
Trans
lation
difference
s of - -
foreign 8,670,432. 8,670,432.
currency 39 39
financial
statement
s
Total
other - -
comprehe 8,670,432. 8,670,432.
nsive 39 39
income
Unit: RMB
Increased in current Decrease in current
Item Beginning balance Ending balance
period period
Work safety funds 3,961,169.87 260,691.30 349,848.38 3,872,012.79
Total 3,961,169.87 260,691.30 349,848.38 3,872,012.79
Unit: RMB
Increased in current Decrease in current
Item Beginning balance Ending balance
period period
Statutory surplus
reserve
Discretionary surplus
reserve
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Total 275,010,401.50 0.00 0.00 275,010,401.50
Unit: RMB
Item Current period Prior period
Undistributed profits at the end of
prior period before adjustment
Total adjustment of beginning
undistributed profits (increase +, 0.00 0.00
decrease -)
Beginning undistributed profits after
adjustment
Add: Net profit attributable to owners
of the parent company in current 100,504,370.41 87,317,829.63
period
Dividends payable on ordinary
shares
Ending undistributed profits 1,744,342,804.34 1,692,530,114.77
Details of adjustments to beginning undistributed profits:
affected by RMB 0.00.
by RMB 0.00.
Unit: RMB
Amount incurred in current period Amount in prior period
Item
Revenue Costs Revenue Costs
Principal businesses 1,823,698,835.87 1,185,961,781.16 1,777,911,239.83 1,149,101,334.42
Other businesses 16,781,504.61 10,241,040.61 6,220,697.40 707,277.15
Total 1,840,480,340.48 1,196,202,821.77 1,784,131,937.23 1,149,808,611.57
Disaggregated information of operating revenue and operating costs:
Unit: RMB
Segment 1 Total
Contract Classification
Operating revenue Operating costs Operating revenue Operating costs
Business Type
Including:
Watch brand business 252,452,120.62 70,365,782.78 252,452,120.62 70,365,782.78
Comprehensive luxury
watch service business
Precision technology
business
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Leasing business 52,916,447.44 16,753,851.32 52,916,447.44 16,753,851.32
Other 16,781,504.61 10,241,040.61 16,781,504.61 10,241,040.61
By Operating Region
Including:
South China 846,839,128.62 546,188,552.47 846,839,128.62 546,188,552.47
Northwest China 255,622,443.68 165,765,219.64 255,622,443.68 165,765,219.64
North China 67,720,684.71 41,875,442.33 67,720,684.71 41,875,442.33
East China 152,531,098.84 94,900,877.97 152,531,098.84 94,900,877.97
Northeast China 181,784,914.65 127,934,009.81 181,784,914.65 127,934,009.81
Southwest China 335,982,069.98 219,538,719.55 335,982,069.98 219,538,719.55
Total 1,840,480,340.48 1,196,202,821.77 1,840,480,340.48 1,196,202,821.77
Other Notes
See Note V.37 for details.
Information related to transaction prices allocated to remaining performance obligations:
At the end of the reporting period, revenue corresponding to performance obligations that have been signed but
not yet performed or completed was RMB 0.00.
Information related to variable consideration in contracts:
Not applicable
Significant Contract Modifications or Major Transaction Price Adjustments
Not applicable
Unit: RMB
Item Amount incurred in current period Amount in prior period
Consumption tax 1,161,736.13 1,206,242.82
Urban maintenance and construction
tax
Educational surcharges 4,855,547.05 3,560,819.76
Property tax 3,711,955.46 3,761,835.26
Land use tax 200,921.98 193,107.20
Vehicle and vessel usage tax 1,680.00 1,020.00
Stamp duty 1,393,054.07 1,137,269.96
Other 321,875.39 587,613.97
Total 18,462,441.06 15,513,201.04
Unit: RMB
Item Amount incurred in current period Amount in prior period
Employee benefits 72,836,051.07 70,190,119.12
Depreciation and amortization 9,761,906.82 10,093,537.37
Travel expenses 1,589,706.47 697,547.75
Office expenses 1,318,846.75 1,218,376.72
Intermediary fees 1,615,228.32 1,543,816.43
Utilities, property management, and
rental expenses
Business entertainment expenses 215,725.98 229,638.66
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Vehicle and transportation expenses 476,856.31 431,178.16
Communication expenses 72,843.71 106,156.57
Other 5,959,170.82 3,906,851.92
Total 95,354,788.74 89,971,510.01
Unit: RMB
Item Amount incurred in current period Amount in prior period
Employee benefits 118,180,389.36 151,438,933.03
Mall and rental expenses 82,328,499.83 64,976,038.21
Advertising, exhibition, and marketing
promotion expenses
Depreciation and amortization 69,408,538.50 85,895,948.64
Packaging expenses 2,613,732.57 3,354,092.79
Utilities and property management
fees
Transportation expenses 2,049,319.60 2,155,504.25
Office expenses 1,834,779.28 2,092,204.90
Travel expenses 1,818,131.83 1,727,206.33
Business entertainment expenses 593,496.54 882,474.30
Other 9,499,741.59 2,582,931.38
Total 360,654,255.33 392,808,032.65
Unit: RMB
Item Amount incurred in current period Amount in prior period
Employee benefits 33,415,540.82 25,193,556.07
Sample and material costs 1,317,816.72 427,397.19
Depreciation and amortization 2,463,373.05 2,484,373.63
Technical cooperation expenses 425,254.93 1,292,546.07
Other 3,095,411.12 3,689,998.37
Total 40,717,396.64 33,087,871.33
Unit: RMB
Item Amount incurred in current period Amount in prior period
Interest expense 1,186,429.02 2,390,395.42
Less: Capitalized interest 0.00 0.00
Less: Interest income 1,831,836.70 1,870,950.85
Foreign exchange gains/losses -1,511,346.78 -560,384.92
Bank handling charges and other
expenses
Total 3,035,440.88 5,640,080.29
Unit: RMB
Sources Generating Other Income Amount incurred in current period Amount in prior period
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Government grants 1,916,497.10 1,509,835.03
Handling fees for withholding
individual income tax
Additional deduction for input VAT 619,229.75 871,341.32
Total 3,155,303.04 2,946,889.68
Not applicable
Not applicable
Unit: RMB
Item Amount incurred in current period Amount in prior period
Investment income from long-term
equity investments under equity 235,596.74 494,545.14
method
Interest on time deposits 394,557.22 247,499.84
Total 630,153.96 742,044.98
Unit: RMB
Item Amount incurred in current period Amount in prior period
Bad debt losses on notes receivable -96,391.86 676,063.08
Bad debt losses on accounts
receivable
Bad debt losses on other receivables -75,442.06 118,839.22
Total 1,098,927.84 2,228,174.46
Unit: RMB
Item Amount incurred in current period Amount in prior period
I. Inventory depreciation losses and
contract performance cost 0.00 1,780,567.39
impairment losses
II. Impairment losses on long-term
equity investments
III. Impairment losses on investment
properties
IV. Impairment losses on fixed assets
V. Impairment losses on engineering
materials
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
VI. Impairment losses on
construction in progress
VII. Impairment losses on productive
biological assets
VIII. Impairment losses on oil and
gas assets
IX. Impairment losses on intangible
assets
X. Impairment losses on goodwill
XI. Impairment losses on contract
assets
XII. Other
Total 0.00 1,780,567.39
Unit: RMB
Sources of Gains on Disposal of
Amount incurred in current period Amount in prior period
Assets
Gains or losses on disposal of fixed
-72,202.13 -136,999.29
assets
Gains or losses on disposal of right-
of-use assets
Total 474,063.48 -424,407.32
Unit: RMB
Amount recognized in
Amount incurred in current
Item Amount in prior period current non-recurring profit
period
or loss
Payables no longer
required to be paid
Compensation income 537,470.88 913,547.80 537,470.88
Other 115,267.30 82,150.96 115,267.30
Total 653,081.03 1,204,207.92 653,081.03
Unit: RMB
Amount recognized in
Amount incurred in current
Item Amount in prior period current non-recurring profit
period
or loss
Losses on non-monetary
asset exchanges
External donations 0.00 0.00 0.00
Fines and late payment
surcharges
Liquidated damages 43,279.99 1,045.00 43,279.99
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Other 9,816.95 78,693.73 9,816.95
Total 400,214.22 219,441.69 400,214.22
(1) Statement of income tax expense
Unit: RMB
Item Amount incurred in current period Amount in prior period
Current income tax expense 34,641,511.42 21,933,368.58
Deferred income tax expense -3,481,370.64 1,181,797.15
Total 31,160,140.78 23,115,165.73
(2) Reconciliation of accounting profit to income tax expense
Unit: RMB
Item Amount incurred in current period
Total profit 131,664,511.19
Income tax expense calculated at statutory/applicable tax
rates
Impact of different tax rates applicable to subsidiaries 148,591.51
Impact of adjustments to income tax of prior periods 310,828.33
Impact of non-taxable income -58,899.19
Impact of non-deductible costs, expenses, and losses 1,066,613.03
Super deduction for R&D expenses -3,223,120.70
Income tax expense 31,160,140.78
See Note VII.57 for details.
(1) Cash related to operating activities
Cash received relating to other operating activities
Unit: RMB
Item Amount incurred in current period Amount in prior period
Deposits and security deposits 1,647,257.08 4,721,865.96
Government grants 2,226,588.68 1,698,194.84
Product promotion fees 1,067,423.08 2,732,719.87
Interest income 1,831,836.70 1,913,911.99
Petty cash 377,419.23 843,906.32
Other 2,934,491.87 8,406,114.61
Total 10,085,016.64 20,316,713.59
Cash paid relating to other operating activities
Unit: RMB
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Item Amount incurred in current period Amount in prior period
Deposits and security deposits 5,371,300.42 5,929,267.55
Period expenses and other expenses 152,962,069.84 145,952,265.33
Total 158,333,370.26 151,881,532.88
(2) Cash related to investing activities
Cash received relating to other investing activities
Unit: RMB
Item Amount incurred in current period Amount in prior period
Maturity of time deposits 3,389,433.51 104,282,319.06
Total 3,389,433.51 104,282,319.06
Significant cash received relating to investing activities
Not applicable
Cash paid relating to other investing activities
Unit: RMB
Item Amount incurred in current period Amount in prior period
Placement of time deposits 76,251,159.49 111,168,651.92
Total 76,251,159.49 111,168,651.92
Significant cash paid relating to investing activities
Not applicable
(3) Cash related to financing activities
Cash received relating to other financing activities
Not applicable
Cash paid relating to other financing activities
Unit: RMB
Item Amount incurred in current period Amount in prior period
Cash outflow for leases 46,135,370.10 45,795,435.69
Total 46,135,370.10 45,795,435.69
Explanation of cash paid relating to other financing activities:
Not applicable
Changes in liabilities arising from financing activities
Unit: RMB
Increased in current period Decrease in current period
Beginning Ending
Item Non-cash Non-cash
balance Cash changes Cash changes balance
changes changes
Short-term
borrowings
Dividends
payable
Non-current
liabilities due
within one
year
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Lease
liabilities
Total 74,936,882.85 11,000,000.00 37,246,163.62 62,891,750.24
(4) Description of cash flows presented on a net basis
Not applicable
(5) Significant activities and financial impacts not involving current cash flows but affecting
financial position or future cash flows
Not applicable
(1) Supplementary information to the cash flow statement
Unit: RMB
Supplementary Information Amount in Current Period Amount in prior period
flows from operating activities:
Net profit 100,504,370.41 82,445,500.03
Add: Asset impairment provisions -1,098,927.84 -4,008,741.85
Depreciation of fixed assets,
depletion of oil and gas assets, and
depreciation of productive biological
assets
Depreciation of right-of-use
assets
Amortization of intangible
assets
Amortization of long-term
prepaid expenses
Losses on disposal of fixed
assets, intangible assets, and other
-474,063.48 424,407.32
long-term assets (gains are indicated
by "-")
Losses on scrapping of fixed
assets (gains are indicated by "-")
Losses from changes in fair
value (gains are indicated by "-")
Financial expenses (income is
indicated by "-")
Investment losses (income is
-630,153.96 -742,044.98
indicated by "-")
Decrease in deferred tax
-2,541,383.13 4,768,466.33
assets (increase is indicated by "-")
Increase in deferred tax -939,987.51 -2,856,417.52
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
liabilities (decrease is indicated by "-
")
Decrease in inventories
(increase is indicated by "-")
Decrease in operating
receivables (increase is indicated by -40,736,699.86 -38,310,215.86
"-")
Increase in operating payables
-55,440,129.60 -41,644,010.52
(decrease is indicated by "-")
Other
Net cash flows from operating
activities
activities not involving cash receipts
and payments:
Conversion of debt into capital
Convertible corporate bonds due
within one year
Fixed assets leased under finance
leases
equivalents:
Ending balance of cash 657,780,338.81 539,306,933.97
Less: Beginning balance of cash 631,239,039.65 518,954,177.49
Add: Ending balance of cash
equivalents
Less: Beginning balance of cash
equivalents
Net increase in cash and cash
equivalents
(2) Net cash paid for acquisition of subsidiaries in current period
Not applicable
(3) Net cash received from disposal of subsidiaries in current period
Not applicable
(4) Composition of cash and cash equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 657,780,338.81 631,239,039.65
Including: Cash on hand 32,057.42 34,041.22
Bank deposits readily
available for payment
Other monetary funds readily 2,419,704.68 3,979,122.62
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
available for payment
II. Cash equivalents
Including: Bond investments
maturing within three months
III. Ending balance of cash and cash
equivalents
Including: Restricted cash and cash
equivalents used by the parent
company or subsidiaries within the
group
(5) Circumstances where funds are restricted in use but still presented as cash and cash
equivalents
Unit: RMB
Reason for still qualifying
Item Amount in Current Period Amount in prior period as cash and cash
equivalents
Account funds of the
Company's subsidiary
FIYTA (Hong Kong)
Limited and sub-subsidiary
Bank deposits 4,354,107.60 499,487.91 Montres Chouriet SA are
deposited overseas with
restricted repatriation, but
their routine operational
use is not affected.
Total 4,354,107.60 499,487.91
(6) Monetary funds not qualifying as cash and cash equivalents
Not applicable
(7) Explanation of other significant activities
Not applicable
Not applicable
(1) Foreign currency monetary items
Unit: RMB
Ending foreign currency Ending balance translated
Item Translation exchange rate
balance into RMB
Cash and cash equivalents 11,734,756.15
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Including: USD 322,360.82 6.8109 2,195,567.30
EUR 41,867.18 7.7671 325,186.59
HKD 5,571,302.28 0.8686 4,838,954.60
CHF 519,429.13 8.4228 4,375,047.68
Accounts receivable 7,223,507.79
Including: USD 759,231.08 6.8109 5,171,046.99
EUR
HKD 2,134,337.88 0.8686 1,853,779.17
CHF 23,588.55 8.4228 198,681.64
Long-term borrowings
Including: USD
EUR
HKD
Other receivables 185,283.70
Including: HKD 2,005.60 0.8686 1,741.96
CHF 21,791.06 8.4228 183,541.74
Accounts payable 378,240.29
Including: USD 0.76 6.8109 5.18
HKD 435,478.80 0.8686 378,235.11
Other payables 544,464.24
Including: USD 10,611.45 6.8109 72,273.52
HKD 411,254.27 0.8686 357,194.90
CHF 13,652.92 8.4228 114,995.81
(2) Nature and financial impact of non-convertibility of currencies, spot rates adopted and
estimation processes, and enterprise exposure to non-convertibility risks
Not applicable
(3) Explanation of overseas operating entities, including disclosures of principal place of
business, functional currency, basis of determination, and reasons for any changes in
functional currency
For the principal places of business and functional currencies of significant overseas entities, please refer to Note
V.4.
(4) Non-convertibility between the functional currency of overseas operations and the
Company's presentation currency
Not applicable
(1) The Company as lessee
Variable lease payments not included in the measurement of lease liabilities
Item Amount for H1 2026
Short-term lease expenses with simplified treatment recognized in current profit or loss 4,871,519.12
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Lease expenses for low-value assets (excluding short-term leases) with simplified
treatment recognized in current profit or loss
Interest expense on lease liabilities 1,119,341.05
Variable lease payments not included in the measurement of lease liabilities recognized
in current profit or loss
Income from subleasing right-of-use assets
Total cash outflow related to leases 108,296,677.32
Gains and losses arising from sale and leaseback transactions
In the first half of 2026, variable lease payments not included in the measurement of lease liabilities recognized in
current profit or loss amounted to RMB 57,289,788.10.
Lease expenses for short-term leases or low-value assets with simplified treatment
In the first half of 2026, short-term lease expenses with simplified treatment recognized in current profit or loss
amounted to RMB 4,871,519.12.
Circumstances involving sale and leaseback transactions
Not applicable
(2) The Company as lessor
Operating leases as lessor
Unit: RMB
Including: Income related to variable
Item Lease income lease payments not included in lease
receipts
Lease income 52,916,447.44 0.00
Total 52,916,447.44 0.00
Finance leases as lessor
Not applicable
Undiscounted lease receipts for each of the next five years
Not applicable
Reconciliation of undiscounted lease receipts to net investment in the lease
Not applicable
(3) Selling profit or loss recognized as manufacturer or dealer in finance leases
Not applicable
Not applicable
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
VIII. R&D Expenditures
Unit: RMB
Item Amount incurred in current period Amount in prior period
Employee benefits 33,415,540.82 25,193,556.07
Sample and material costs 1,317,816.72 427,397.19
Depreciation and amortization 2,463,373.05 2,484,373.63
Technical cooperation expenses 425,254.93 1,292,546.07
Other 3,095,411.12 3,689,998.37
Total 40,717,396.64 33,087,871.33
Including: Expensed R&D
expenditures
Capitalized R&D expenditures 0.00 0.00
Not applicable
Not applicable
IX. Changes in Scope of Consolidation
(1) Business combinations not under common control in current period
Not applicable
(2) Combination costs and goodwill
Not applicable
(3) Identifiable assets and liabilities of acquirees on acquisition date
Not applicable
(4) Gains or losses arising from remeasurement of previously held equity at fair value on acquisition date
Whether control was obtained through step acquisitions via multiple transactions in the reporting period
No
(5) Explanations where combination consideration or acquiree's identifiable assets/liabilities fair values
cannot be determined reasonably on acquisition date or period-end
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(6) Other notes
Not applicable
(1) Business combinations under common control in current period
Not applicable
(2) Combination costs
Not applicable
(3) Carrying amounts of combinees' assets and liabilities on merger date
Not applicable
Not applicable
Whether transactions or events occurred in current period resulting in loss of control over subsidiaries
No
Whether step disposals of investments in subsidiaries occurred resulting in loss of control in current period
No
Not applicable
Not applicable
X. Interests in Other Entities
(1) Composition of the corporate group
Unit: RMB
Registered Princip Place Nature Shareholding Acquisition
Subsidiary Name
capital al of of percentage Method
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Place Regist Busine
of ration ss
Direct Indirect
Busine
ss
Establishme
Shenzhen Harmony World Shenzh Shenz Comm 100.00
Watch Center Co., Ltd. en hen erce %
investment
Establishme
Shenzh Shenz Comm 100.00
FIYTA Sales Co., Ltd. 450,000,000.00 nt or
en hen erce %
investment
Establishme
Shenzhen FIYTA Precision Shenzh Shenz Manufa
Technology Co., Ltd. en hen cturing
investment
Establishme
Shenzhen FIYTA Technology Shenzh Shenz Manufa 100.00
Development Co., Ltd. en hen cturing %
investment
Establishme
Harmony World Watch Center Comm 100.00
(Hainan) Co., Ltd. erce %
investment
Establishme
Shenzhen Xunhang Precision Shenzh Shenz Manufa 100.00
Technology Co., Ltd. en hen cturing %
investment
Establishme
Emile Chouriet Horlogerie Shenzh Shenz Comm 100.00
(Shenzhen) Co., Ltd. en hen erce %
investment
Business
combination
Liaoning Hengdarui Shenya Sheny Comm 100.00
Commercial & Trade Co., Ltd. ng ang erce %
common
control
Establishme
Shiyuehui Boutique (Shenzhen) Shenzh Shenz Comm 100.00
Co., Ltd. en hen erce %
investment
Establishme
Shenzhen Harmony E- Shenzh Shenz Comm 100.00
Commerce Co., Ltd. en hen erce %
investment
Establishme
Hong Hong Comm 100.00
FIYTA (Hong Kong) Limited 137,737,520.00 nt or
Kong Kong erce %
investment
Business
combination
Montres Switzer Switze Manufa 100.00
Chouriet SA land rland cturing %
common
control
Explanation of difference between shareholding percentage and voting rights percentage in subsidiaries:
Not applicable
Basis for controlling investees with half or less voting rights, or not controlling investees with over half voting rights:
Not applicable
Basis for control over significant structured entities included in consolidation scope:
Not applicable
Basis for determining whether the Company is a principal or an agent:
Not applicable
Other notes:
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Not applicable
(2) Significant non-wholly-owned subsidiaries
Not applicable
(3) Key financial information of significant non-wholly-owned subsidiaries
Not applicable
(4) Material restrictions on using corporate group assets and settling group debts
Not applicable
(5) Financial or other support provided to structured entities included in consolidated statements
Not applicable
of Control
(1) Description of changes in owners' equity shares in subsidiaries
Not applicable
(2) Impact of transactions on non-controlling interests and equity attributable to owners of the parent
company
Not applicable
(1) Significant joint ventures or associates
Not applicable
(2) Key financial information of significant joint ventures
Not applicable
(3) Key financial information of significant associates
Not applicable
(4) Aggregate financial information of insignificant joint ventures and associates
Unit: RMB
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Ending balance / Amount in current Beginning balance / Amount in prior
period period
Joint ventures:
Aggregate amounts calculated in
proportion to shareholding
Associates:
Total carrying amount of investments 46,672,153.60 46,436,556.86
Aggregate amounts calculated in
proportion to shareholding
-- Net profit 942,386.98 1,978,180.55
-- Total comprehensive income 942,386.98 1,978,180.55
(5) Explanation of significant restrictions on the ability of joint ventures or associates to
transfer funds to the Company
Not applicable
(6) Excess losses incurred by joint ventures or associates
Not applicable
(7) Unrecognized commitments related to investments in joint ventures
Not applicable
(8) Contingent liabilities related to investments in joint ventures or associates
Not applicable
Not applicable
Not applicable
Not applicable
XI. Government Grants
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Not applicable
Unit: RMB
Accounting Line Item Amount incurred in current period Amount in prior period
Other income 1,916,497.10 1,509,835.03
XII. Risks Related to Financial Instruments
Risks related to financial instruments arise from various financial assets and liabilities recognized by the Company
in the course of operations, including credit risk, liquidity risk, and market risk.
The Company's management is responsible for formulating risk management objectives and policies related to
financial instruments. The operational management is responsible for routine risk management through functional
departments (for example, the Company's Credit Management Department reviews credit sales on a transaction-by-
transaction basis). The Company's Internal Audit Department conducts regular monitoring of the implementation of risk
management policies and procedures and reports findings promptly to the Audit Committee.
The overall objective of the Company's risk management is to formulate risk management policies that minimize
risks related to financial instruments without unduly compromising the Company's competitiveness and resilience.
Credit risk refers to the risk that one party to a financial instrument will fail to discharge an obligation and cause
the other party to incur a financial loss. The Company's credit risk arises mainly from monetary funds, notes receivable,
accounts receivable, receivables financing, etc. The credit risk of these financial assets stems from counterparty
defaults, with the maximum exposure equal to the carrying amounts of these instruments.
The Company's monetary funds are mainly deposited in commercial banks and other financial institutions that the
Company considers to possess high credit standing and strong asset positions, thus presenting low credit risk.
For notes receivable, accounts receivable, and receivables financing, the Company implements policies to control
credit risk exposure. The Company assesses customers' credit qualifications and establishes credit periods based on
their financial standing, the availability of third-party guarantees, credit histories, and other factors such as prevailing
market conditions. The Company regularly monitors customer credit records. For customers with poor credit records, it
uses written payment reminders, shortens credit periods, or cancels credit terms to ensure overall credit risk remains
controllable.
(1) Criteria for determining significant increase in credit risk
The Company assesses at each balance sheet date whether credit risk on financial instruments has increased
significantly since initial recognition. In determining significant increases in credit risk, the Company considers
reasonable and supportable information available without undue cost or effort, including qualitative and quantitative
analyses based on historical data, external credit ratings, and forward-looking information. On an individual instrument
basis or a collective portfolio basis of instruments with similar credit characteristics, the Company evaluates changes
in default risk over the expected life by comparing default risk at the balance sheet date with that at initial recognition.
The Company considers that credit risk has increased significantly when one or more of the following quantitative
or qualitative criteria are triggered: Quantitative criteria mainly comprise an increase in the remaining lifetime default
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
probability at the reporting date exceeding a specific threshold compared to initial recognition; qualitative criteria
include significant adverse changes in the operational or financial condition of major debtors, inclusion in early-warning
customer lists, etc.
(2) Definition of credit-impaired financial assets
To determine whether credit impairment has occurred, the definition criteria adopted by the Company align with
internal credit risk management objectives for relevant financial instruments, incorporating both quantitative and
qualitative indicators.
In evaluating whether a debtor is credit-impaired, the Company mainly considers the following: significant financial
difficulty of the issuer or debtor; A breach of contract by the debtor, such as a default or delinquency in interest or
principal payments; The creditor, for economic or contractual reasons relating to the debtor's financial difficulty,
granting a concession that would not otherwise be considered; It becoming probable that the debtor will enter
bankruptcy or other financial reorganization; The disappearance of an active market for that financial asset because of
financial difficulties of the issuer or debtor; The purchase or origination of a financial asset at a deep discount that
reflects incurred credit losses.
Credit impairment of a financial asset may be caused by the combined effect of multiple events, rather than a single
identifiable event.
(3) Parameters for measuring expected credit losses
Depending on whether credit risk has increased significantly and whether credit impairment has occurred, the
Company measures loss allowances for different assets at 12-month or lifetime ECL. Key parameters for ECL
measurement include Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD). Taking
into account quantitative analysis of historical statistical data (such as counterparty ratings, guarantee methods,
collateral types, repayment methods) and forward-looking information, the Company establishes PD, LGD, and EAD
models.
Related definitions are as follows:
Probability of Default refers to the likelihood that a debtor will be unable to meet its repayment obligations over the
next 12 months or over the remaining lifetime.
Loss Given Default refers to the Company's expectation of the extent of loss on default exposure. LGD varies
depending on counterparty types, recourse methods, priority, and collateral. LGD is the percentage of exposure lost
upon default, calculated on a 12-month or lifetime basis;
Exposure at Default refers to the amount the Company is entitled to be repaid upon default over the next 12
months or remaining lifetime. The assessment of significant increases in credit risk and the calculation of ECL both
involve forward-looking information. Through historical data analysis, the Company identifies key economic indicators
affecting credit risk and ECL across various business segments.
The Company's maximum credit risk exposure equals the carrying amount of each financial asset in the balance
sheet. The Company has provided no other guarantees that would expose it to credit risk.
In the Company's accounts receivable, receivables from the top five customers accounted for 26.50% of the total
accounts receivable (comparison period: 21.77%).
Liquidity risk refers to the risk that an enterprise will encounter shortage of funds in meeting obligations settled by
delivering cash or other financial assets. The Company oversees cash management across subsidiaries, including
short-term investment of surplus cash and loan arrangements to meet anticipated cash requirements. The Company's
policy is to regularly monitor short- and long-term liquidity requirements and compliance with loan agreements to
ensure adequate cash reserves and marketable securities readily convertible to cash.
As of June 30, 2026, the maturity profile of the Company's financial liabilities was as follows: (Unit: RMB 10,000)
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
June 30, 2026
Item
Within 1 year 1-2 years 2-3 years Over 3 years
Short-term borrowings -
Accounts payable 6,884.61
Other payables 7,819.55
Non-current liabilities due
within one year
Lease liabilities 1,451.25 22.40
Total 19,519.69 1,451.25 22.40
(1) Foreign exchange risk
Except for the Hong Kong subsidiary holding assets denominated in HKD and the Swiss sub-subsidiary holding
assets denominated in CHF, the Company's other primary business activities are settled mainly in RMB. However,
foreign exchange risks remain for recognized foreign currency assets and liabilities and future foreign currency
transactions (chiefly denominated in HKD and CHF).
Foreign Currency Monetary Items.
As of June 30, 2026, assuming all other risk variables remain constant, if RMB appreciates or depreciates by 5%
against foreign currencies on that date, the Company's net profit for the year will increase or decrease by RMB
(2) Interest rate risk
The Company's interest rate risk arises primarily from long-term interest-bearing debts such as long-term bank
borrowings and bonds payable. Floating-rate financial liabilities expose the Company to cash flow interest rate risk,
while fixed-rate financial liabilities expose it to fair value interest rate risk. The Company determines the relative
proportions of fixed-rate and floating-rate contracts based on prevailing market conditions.
The Finance Department at Company headquarters continuously monitors group interest rate levels. Increases in
interest rates raise the cost of new interest-bearing debts and interest expenses on outstanding floating-rate debts,
posing potential material adverse impacts on financial performance; management makes timely adjustments according
to prevailing market conditions.
As of June 30, 2026, the Company had no long-term interest-bearing debt.
(1) Hedging activities conducted for risk management
Not applicable
(2) Qualified hedging activities applying hedge accounting
Not applicable
(3) Hedging activities conducted for risk management expected to achieve objectives without applying hedge
accounting
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(1) Classification by transfer method
Not applicable
(2) Transferred financial assets derecognized
Not applicable
(3) Transferred financial assets with continuing involvement
Not applicable
XIII. Fair Value Disclosures
Not applicable
Measurements
Not applicable
Recurring and Non-recurring Level 2 Fair Value Measurements
Not applicable
Recurring and Non-recurring Level 3 Fair Value Measurements
Not applicable
of Unobservable Parameters for Recurring Level 3 Fair Value Measurements
Not applicable
Recurring Fair Value Measurements During Current Period
Not applicable
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Not applicable
Not applicable
XIV. Related Parties and Related-Party Transactions
Parent Parent
Place of company's company's voting
Parent Company Nature of Registered
Registratio shareholding rights
Name Business capital
n percentage in percentage in
the enterprise the enterprise
Shentian Technology
Business RMB 1,166.1620
Holding (Shenzhen) Shenzhen 40.17% 40.17%
services million
Co., Ltd.
Description of the parent company of the enterprise
Shentian Technology Holding (Shenzhen) Co., Ltd. is a wholly-owned subsidiary indirectly held 100.00% by
Aviation Industry Corporation of China, Ltd.
The ultimate controlling party of the enterprise is Aviation Industry Corporation of China, Ltd.
For details of the enterprise's subsidiaries, please refer to Note X. Interests in Other Entities.
For details of significant joint ventures or associates, please refer to Note X. Interests in Other Entities.
Relationship Between
Name of Other Related Party Other Related Party and
the Enterprise
Aviation Industry Corporation of China, Ltd. and its subsidiaries (hereinafter "AVIC and its Under control of the
subsidiaries") same party
Associates of Aviation Industry Corporation of China, Ltd. and their subsidiaries Associates of the
(hereinafter "AVIC associates and subsidiaries") ultimate controlling party
Associate of the
Shanghai Watch Co., Ltd. (hereinafter "Shanghai Watch")
Company
Directors and Senior Executives of the Company (hereinafter "Key Management Key management
Personnel") personnel
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(1) Related-party transactions in purchasing/selling goods and rendering/receiving services
Purchase of goods / Receipt of services table
Unit: RMB
Whether
Amount exceedin
Content of related-party Approved Amount in prior
Related Party incurred in g
transaction transaction limit period
current period approved
limit
Purchase of goods and
AVIC and its
payment of related 6,033,942.79 45,000,000.00 No 6,239,244.80
subsidiaries
expenses
Purchase of goods and
AVIC associates and
payment of related 5,170,281.43 22,000,000.00 No 5,394,613.24
subsidiaries
expenses
Shanghai Watch Purchase of goods 0.00 5,000,000.00 No 0.00
Total 11,204,224.22 72,000,000.00 11,633,858.04
Sale of goods / Rendering of services table
Unit: RMB
Amount incurred Amount in prior
Related Party Content of related-party transaction
in current period period
AVIC and its subsidiaries Sale of goods and rendering of services 14,566,458.05 19,627,421.48
Sale of goods and collection of property
AVIC associates and subsidiaries 1,561,409.10 1,410,539.78
management fees
Shanghai Watch Sale of goods and rendering of services 0.00 2,018,837.18
Total 16,127,867.15 23,056,798.44
(2) Related-party entrusted management/contracting and entrustment/subcontracting
Not applicable
(3) Related-party leasing
The Company as lessor:
Unit: RMB
Type of Leased Lease income recognized Lease income recognized
Lessee Name
Asset in current period in prior period
AVIC associates and subsidiaries Building 34,285.74 25,024.53
AVIC and its subsidiaries Building 0.00 281,999.98
Total 34,285.74 307,024.51
The Company as lessee:
Unit: RMB
Rental expenses Variable lease
Type
for short-term payments not Interest expense
Lessor of Increase in right-
and low-value included in Rent paid incurred on lease
Name Lease of-use assets
asset leases measurement of liabilities
d
under simplified lease liabilities (if
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Asset treatment (if applicable)
applicable)
Amoun Amoun Amoun Amoun Amoun
t Amoun t Amoun t Amoun t Amoun t Amoun
incurre t in incurre t in incurre t in incurre t in incurre t in
d in prior d in prior d in prior d in prior d in prior
current period current period current period current period current period
period period period period period
AVIC
associ
ates Buildin 8,509. 18,422 139,33 182,80 2,531. 2,662.
and g 09 .90 6.55 6.26 38 55
subsidi
aries
Total 0.00 0.00
(4) Related-party guarantees
Not applicable
(5) Capital lending with related parties
Not applicable
(6) Asset transfer and debt restructuring with related parties
Not applicable
(7) Key management personnel compensation
Not applicable
(8) Other related-party transactions
The ending deposit balance placed by the Company with AVIC Finance at the end of the period was RMB
(1) Receivables items
Unit: RMB
Ending balance Beginning balance
Item Name Related Party Gross carrying Bad debt Gross carrying Bad debt
amount provision amount provision
Bank
AVIC Finance 625,703,835.03 552,559,173.96
deposits
Notes AVIC and its
receivable subsidiaries
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
AVIC and its
Accounts subsidiaries
receivable AVIC associates and
subsidiaries
AVIC and its
Other subsidiaries
receivables AVIC associates and
subsidiaries
(2) Payables items
Unit: RMB
Ending gross carrying Beginning gross carrying
Item Name Related Party
amount amount
Other payables AVIC associates and subsidiaries 892,941.08 892,941.08
Accounts payable AVIC and its subsidiaries 188,201.87 37,471.91
Advances from AVIC associates and subsidiaries 3,396.29 0.00
customers AVIC and its subsidiaries 11,250.00 11,250.00
Not applicable
Not applicable
XV. Share-Based Payments
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Not applicable
XVI. Commitments and Contingencies
Significant commitments existing at the balance sheet date
Significant external commitments and impacts existing at the balance sheet date represent lease contracts signed
that are being executed or ready to be executed and their financial impacts; please refer to Note VII.47 Lease
Liabilities and Note VII.82 Leases.
Except for the aforementioned commitments, as of June 30, 2026, the Company had no other significant
commitments required to be disclosed.
(1) Significant contingencies existing at balance sheet date
Not applicable
(2) Statement where the Company has no significant contingencies to disclose
The Company has no significant contingencies required to be disclosed.
Not applicable
XVII. Events After Balance Sheet Date
Not applicable
Not applicable
Not applicable
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
XVIII. Other Significant Events
(1) Retrospective restatement method
Not applicable
(2) Prospective application method
Not applicable
Not applicable
(1) Non-monetary asset exchanges
Not applicable
(2) Other asset swaps
Not applicable
Not applicable
Not applicable
(1) Basis for determining reportable segments and accounting policies
The Company determines operating segments based on internal organizational structure, management
requirements, and internal reporting systems. An operating segment of the Company refers to a component that
simultaneously meets the following criteria:
(1) It can generate revenues and incur expenses in daily activities;
(2) Management can regularly review its operating results to allocate resources and assess performance;
(3) Accounting information regarding its financial position, operating results, cash flows, etc., is available.
The Company determines reportable segments based on operating segments; an operating segment meeting one
of the following criteria is determined as a reportable segment:
(1) Segment revenue accounts for 10% or more of total revenue of all segments;
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(2) The absolute amount of its segment profit (loss) accounts for 10% or more of the greater of the absolute total
profit of all profitable segments and the absolute total loss of all loss-making segments.
The Company operates in a single line of business, primarily the manufacture and sale of watches. Management
treats this business as a whole to manage and evaluate operating results; therefore, no segment information is
presented in these financial statements.
(2) Financial information of reportable segments
Not applicable
(3) Explanation where the Company has no reportable segments or cannot disclose total
assets and liabilities of each reportable segment
Not applicable
(4) Other notes
Not applicable
Not applicable
Not applicable
XIX. Notes to Major Items in Financial Statements of the Parent Company
(1) Disclosure by aging
Unit: RMB
Aging Ending gross carrying amount Beginning gross carrying amount
Within 1 year (inclusive) 20,197,101.17 10,466,091.51
Over 3 years 319.04 319.04
Total 21,898,922.92 12,103,666.34
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
(2) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Gross carrying Gross carrying
Categor Bad debt provision Carryin Bad debt provision Carryin
amount amount
y g g
Proporti Provisio amount Proporti Provisio amount
Amount Amount Amount Amount
on n ratio on n ratio
Account
s
receiva
ble with
bad
debt 2,279,5 1,992,9 286,540 2,303,5 1,970,5 332,995
provisio 38.09 97.55 .54 65.35 70.09 .26
n
accrued
on an
individu
al basis
Inclu
ding:
Account
s
receiva
ble with
bad
debt 19,619, 73,873. 19,545, 9,800,1 149,885 9,650,2
provisio 384.83 30 511.53 00.99 .53 15.46
n
accrued
on a
portfolio
basis
Inclu
ding:
Receiva
bles
from 1,477,4 73,873. 1,403,5 4,632,0 149,885 4,482,1
custom 66.73 30 93.43 24.39 .53 38.86
ers
portfolio
Related
-party
portfolio
within 82.84% 42.70%
consoli
dation
scope
Total 9.44% 17.52%
Category of individual bad debt provision: Receivables from customers
Unit: RMB
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Beginning balance Ending balance
Name Gross Gross
Bad debt Bad debt Reason for
carrying carrying Provision ratio
provision provision provision
amount amount
Receivables
Expected
from 2,303,565.35 1,970,570.09 2,279,538.09 1,992,997.55 87.43%
uncollectible
customers
Total 2,303,565.35 1,970,570.09 2,279,538.09 1,992,997.55
Category of portfolio bad debt provision: Receivables from customers
Unit: RMB
Ending balance
Name
Gross carrying amount Bad debt provision Provision ratio
Receivables from
customers portfolio
Total 1,477,466.73 73,873.30
Basis for determining the portfolio: Receivables of the same type share similar credit risk characteristics.
Category of portfolio bad debt provision: Related parties within consolidation scope portfolio
Unit: RMB
Ending balance
Name
Gross carrying amount Bad debt provision Provision ratio
Related-party portfolio
within consolidation scope
Total 18,141,918.10 0.00
Basis for determining the portfolio:
Receivables of the same type share similar credit risk characteristics.
If the general expected credit loss model is adopted for accounts receivable bad debt provision:
Not applicable
(3) Bad debt provision accrued, recovered, or reversed in current period
Accrual of bad debt provisions in current period:
Unit: RMB
Amount changed in current period
Beginning Ending
Category Recovered or
balance Accrued Written off Other balance
reversed
Accounts
receivable
with ECL
accrued on an
individual
basis
Accounts
receivable
with ECL
accrued on a
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
portfolio basis
Total 2,120,455.62 -36,063.47 17,521.30 2,066,870.85
(4) Accounts receivable actually written off in current period
Not applicable
(5) Top five accounts receivable and contract assets grouped by debtor at period-end
Unit: RMB
Ending balance
Proportion of
of accounts
Ending balance total ending
Ending balance Ending balance receivable bad
of accounts balance of
Entity Name of accounts of contract debt provision
receivable and accounts
receivable assets and contract
contract assets receivable and
asset impairment
contract assets
provision
Summary of top
five accounts
receivable
ending balances
Total 20,120,876.20 20,120,876.20 91.88% 1,509,224.62
Unit: RMB
Item Ending balance Beginning balance
Other receivables 361,944,183.93 545,751,274.33
Total 361,944,183.93 545,751,274.33
(1) Interest receivable
Not applicable
Not applicable
Not applicable
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Not applicable
(2) Dividends receivable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
(3) Other receivables
Unit: RMB
Nature of payment Ending gross carrying amount Beginning gross carrying amount
Amounts due from related parties
within consolidation scope
Deposits and security deposits 46,992.02 61,809.82
Employee petty cash 88,346.00 0.00
Other 703,586.96 212,878.18
Total 361,986,233.86 545,791,977.16
Unit: RMB
Aging Ending gross carrying amount Beginning gross carrying amount
Within 1 year (inclusive) 361,933,127.23 545,738,870.53
Over 3 years 53,106.63 40,050.00
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Over 5 years 40,050.00 40,050.00
Total 361,986,233.86 545,791,977.16
Unit: RMB
Ending balance Beginning balance
Gross carrying Gross carrying
Categor Bad debt provision Carryin Bad debt provision Carryin
amount amount
y g g
Proporti Provisio amount Proporti Provisio amount
Amount Amount Amount Amount
on n ratio on n ratio
Account
s
receiva
ble with
bad
debt
provisio
n
accrued
on an
individu
al basis
Includin
g:
Accrue
d on a 361,986 100.00 42,049. 361,944 545,791 100.00 40,702. 545,751
portfolio ,233.86 % 93 ,183.93 ,977.16 % 83 ,274.33
basis
Includin
g:
Portfoli
o of
receiva
bles
from
related 99.77% 0.00 0.00% 99.95% 0.00 0.00%
,308.88 ,308.88 ,289.16 ,289.16
parties
within
consoli
dation
scope
Deposit
s and
security 46,992. 40,397. 6,594.9 61,809. 40,673. 21,136.
deposit 02 10 2 82 05 77
s
portfolio
Other
receiva 791,932 1,652.8 790,280 212,878 212,848
bles .96 3 .13 .18 .40
portfolio
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Total 0.01% 0.01%
,233.86 % 93 ,183.93 ,977.16 % 83 ,274.33
Category of portfolio bad debt provision: Deposits and security deposits portfolio
Unit: RMB
Ending balance
Name
Gross carrying amount Bad debt provision Provision ratio
Deposits and security
deposits portfolio
Total 46,992.02 40,397.10
Basis for determining the portfolio: Receivables of the same nature share similar credit risk characteristics.
Category of portfolio bad debt provision: Other receivables portfolio
Unit: RMB
Ending balance
Name
Gross carrying amount Bad debt provision Provision ratio
Other receivables portfolio 791,932.96 1,652.83 0.21%
Total 791,932.96 1,652.83
Basis for determining the portfolio: Receivables of the same nature share similar credit risk characteristics.
Bad debt provision accrued under the general expected credit loss model:
Unit: RMB
Stage 1 Stage 2 Stage 3
Bad debt provision 12-month Lifetime expected credit Total
Lifetime expected credit
expected credit losses (not credit-
losses (credit-impaired)
losses impaired)
Balance as of January 1,
Balance as of January 1,
-- Transfer to Stage 2
-- Transfer to Stage 3
-- Reverse to Stage 2
-- Reverse to Stage 1
Accrual in current period 1,347.10 1,347.10
Reversal in current period
Written off in current period
Charged off in current
period
Other changes
Balance as of June 30,
Basis for stage division and bad debt provision accrual ratios
Stage 1 represents bad debt provisions for other receivables aged within 1 year; Stage 2 represents bad debt
provisions for accounts receivable aged over 1 year without individual assessment; Stage 3 represents bad debt
provisions accrued on an individual assessment basis.
Significant changes in gross carrying amounts affecting changes in loss allowances
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Accrual of bad debt provisions in current period:
Unit: RMB
Amount changed in current period
Beginning Ending
Category Recovered or
balance Accrued Write-off Other balance
reversed
Accrued on a
portfolio basis
Total 40,702.83 1,347.10 42,049.93
Not applicable
Unit: RMB
Ending
Proportion of total
Entity balance of
Nature of payment Ending balance Aging ending balance of
Name bad debt
other receivables
provision
Portfolio of receivables from
Within 1
First related parties within 267,673,632.07 73.95% 0.00
year
consolidation scope
Portfolio of receivables from
Within 1
Second related parties within 60,366,112.14 16.68% 0.00
year
consolidation scope
Portfolio of receivables from
Within 1
Third related parties within 27,107,564.67 7.49% 0.00
year
consolidation scope
Portfolio of receivables from
Within 1
Fourth related parties within 6,000,000.00 1.66% 0.00
year
consolidation scope
Over 3
Fifth Deposits receivable 40,000.00 0.01% 40,000.00
years
Total 361,187,308.88 99.79% 40,000.00
Not applicable
Unit: RMB
Ending balance Beginning balance
Item Gross Gross
Impairment Carrying Impairment Carrying
carrying carrying
provision amount provision amount
amount amount
Investments in 1,592,543,885 1,592,543,885. 1,592,543,885 1,592,543,885
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
subsidiaries .91 91 .91 .91
Investments in
associates
and joint
ventures
Total
.51 51 .77 .77
(1) Investments in subsidiaries
Unit: RMB
Beginning Beginning Changes in current period Ending Ending
balance balance of Additional Impairmen balance balance of
Investee Investmen
(carrying impairmen investmen t provision Other (carrying impairmen
amount) t provision t reduction amount) t provision
t accrued
Shenzhen
Harmony
World 609,891,9 609,891,9
Watch 73.62 73.62
Center
Co., Ltd.
Shenzhen
Harmony
E-
Commerc
e Co., Ltd.
Shenzhen
FIYTA
Precision
Technolog
y Co., Ltd.
Shenzhen
FIYTA
Technolog
y
Developm
ent Co.,
Ltd.
FIYTA
(Hong 137,737,5 137,737,5
Kong) 20.00 20.00
Limited
Shiyuehui
Boutique
(Shenzhe
n) Co.,
Ltd.
FIYTA
Sales Co.,
Ltd.
Liaoning
Hengdarui
Commerci
al & Trade
Co., Ltd.
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Emile
Chouriet
Horlogerie 80,613,90 80,613,90
(Shenzhe 4.83 4.83
n) Co.,
Ltd.
Harmony
World
Watch 10,000,00 10,000,00
Center 0.00 0.00
(Hainan)
Co., Ltd.
Shenzhen
Xunhang
Precision
Technolog
y Co., Ltd.
Total
(2) Investments in associates and joint ventures
Unit: RMB
Changes in current period
Begin Begin Invest Endin Endin
ning ning ment Other g g
balan balan incom compr Cash Impair balan balan
Invest ce ce of Additi Invest e/loss ehens Other divide ment ce ce of
ee (carryi impair onal ment recog ive equity nds or provisi (carryi impair
Other
ng ment invest reduct nized incom chang profits on ng ment
amou provisi ment ion under e es declar accru amou provisi
nt) on equity adjust ed ed nt) on
metho ments
d
I. Joint ventures
II. Associates
Shang
hai 46,43 46,67
Watch 6,556. 2,153.
Co., 86 60
Ltd.
Subtot 235,5
al 96.74
Total 6,556. 2,153.
(3) Other notes
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Unit: RMB
Amount incurred in current period Amount in prior period
Item
Revenue Costs Revenue Costs
Principal businesses 78,346,349.63 41,246,617.92 79,218,866.11 25,511,651.20
Other businesses 2,193,360.67 2,255,957.31
Total 80,539,710.30 41,246,617.92 81,474,823.42 25,511,651.20
Unit: RMB
Item Amount incurred in current period Amount in prior period
Investment income from long-term
equity investments under cost 153,354,622.33 0.00
method
Investment income from long-term
equity investments under equity 235,596.74 494,545.14
method
Total 153,590,219.07 494,545.14
Not applicable
XX. Supplementary Information
Unit: RMB
Item Amount Description
Gains and losses on disposal of non-current assets 474,063.48
Government grants recognized in current profit or loss (excluding those closely
related to the Company's normal operating business, complying with national
policies and regulations, enjoyed in accordance with established standards, and
having a continuing impact on the Company's profit or loss)
Fair value change gains and losses arising from holding financial assets and
financial liabilities by non-financial enterprises and gains and losses from disposal
of financial assets and financial liabilities, except for effective hedging activities
related to the Company's normal business operations
Reversal of impairment provision for receivables tested for impairment individually 1,390,273.53
Other non-operating income and expenses other than the above items 252,866.81
Less: Income tax effect 763,108.21
Total 3,665,149.93 --
Specific circumstances of other profit or loss items that meet the definition of non-recurring profit or loss:
Not applicable
FIYTA Precision Technology Co., Ltd. 2026 Interim Report (Full Text)
Explanation of defining non-recurring profit or loss items listed in "Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Securities to the Public — Non-recurring Profit or Loss" as recurring profit or loss
items
Not applicable
Earnings Per Share
Weighted average return
Profit in Reporting Period Basic earnings per share Diluted earnings per share
on equity (ROE)
(RMB/share) (RMB/share)
Net profit attributable to
ordinary shareholders of 2.98% 0.2477 0.2477
the Company
Net profit attributable to
ordinary shareholders of
the Company after 2.87% 0.2387 0.2387
deducting non-recurring
profit or loss
(1) Differences in net profit and net assets in financial reports disclosed simultaneously under
IFRS and CAS
Not applicable
(2) Differences in net profit and net assets in financial reports disclosed simultaneously under
foreign accounting standards and CAS
Not applicable
（3） Explanation of reasons for accounting data differences under domestic and foreign
accounting standards, including the name of overseas auditing firm if overseas audited data
are reconciled
Not applicable
Not applicable
FIYTA Precision Technology Co., Ltd.
Board of Directors
August 21, 2026
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