FIYTA HOLDINGS LTD. 2015 ANNUAL REPORT, SUMMARY Stock Code: 000026, 200026 Short Form of the Securities: FIYTA A, FIYTA B
Announcement No: 2016-015
FIYTA HOLDINGS LTD.
2015 ANNUAL REPORT, SUMMARY
1. Important Notice
This Annual Report Summary is taken from the full text of the Annual Report. Investors are advised to read carefully the full text of the Annual Report published on the media designated by China Securities Regulatory Commission in order to fully understand theCompany’s operation results, financial position and future development plan.
With the exception of the following directors, all the other directors personally attended the Board Meeting for reviewing the Annual Report
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|Names of the directors failed|Posts of the directorsfailed in attending themeeting personally|Cause of failure inattending themeeting personally||
||||Names of the|
|in attending the meeting||||
||||attorneys|
|personally||||
|Diao Weicheng|Chairman|Business trip|Xu Dongsheng|
|Liu Aiyi|Director|Business trip|Cao Zhen|
|Zhong Sijun|Director|Business trip|Wang Mingchuan|
|Zhang Hong Guang|Independent director|Business trip|Wang Yan|

Reminder of the qualifiedauditor’s opinions
Inapplicable
Preplan of Profit Distribution for Common Stock or Preplan for Capitalization of the Reserves in the Reporting Period Reviewed by the Board Meeting
Preplan of profit distribution for common stock reviewed and approved by the said board meeting is summarized as follows: With 438,744,881 shares as the base, the Company would distrbute cash dividend to the whole shareholders at the rate for CNY1.00 (with tax inclusive) and 0 bonus share (with tax inclusive) for every 10 shares; no reserve would be capitalized.
Preplan of Profit Distribution for Preferred Shares in the Reporting Period Approved by the Resolution of the Board Meeting
Inapplicable
Company Profile
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|Short form of the stock:|FIYTA A, FIYTA B||Stock Code:|||000026, 200026|
|Stock Exchange Listed with||Shenzhen Stock Exchange|||||
|Liaison Person and the Way|||||||
|||Secretary of the Board|||Securities Affairs Representative||
|of Contact|||||||
|Names|Lu Wanjun|||Zhang Yong|||

FIYTA HOLDINGS LTD. 2015 ANNUAL REPORT, SUMMARY 20th
20th
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||20th Floor, FIYTA TechnologyBuilding, Gaoxin S. Road One,Nanshan District, Shenzhen|20th Floor, FIYTA TechnologyBuilding, Gaoxin S. Road One,Nanshan District, Shenzhen|
|Office Address|||
|Fax|0755－83348369|0755－83348369|
|Tel|0755－86013198|0755－86013669|
|E-mail|investor@fiyta.com.cn|investor@fiyta.com.cn|

II. Introduction to the Principal Businesses or Products in the Reporting Period FIYTA has been concentrating itself in watch industry under the strategy of brand building, carrying forward integration and upgrading of the key value chain, successfully constructed commercial retail network channels of seamless coverage consisting of HARMONY, HENGLIANDA, the Sales Company (including BRAND GALLERY), e-commerce platform, etc.,, provided the consumers with extremely thoughtful top quality services; improved R& D, design and manufacture platform of watches, formed our own brand group with the high-end brands, FIYTA watches and fashion brands as the principal and both the brands and products have been well upgraded.
III. Summary of Accounting/Financial Data
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to change of the accounting policy and correction of accounting errors?
No
In CNY
||||||||
|-|-|-|-|-|-|-|
||||||Year-on-yearincrease/decrease||
|||2015||2014||2013|
||3,162,196,212.90||3,278,142,785.87|||3,103,496,962.|
|Turnover in CNY|||||-3.54%||
|||||||22|
|Net profit attributable to|121,702,057.44||145,591,136.39||||
|||||||130,125,124.4|
|the Company’s|||||-16.41%||
|||||||8|
|shareholders, in CNY|||||||
|Net profit attributable to|||||||
|the Company’s|||||||
|||||||127,158,503.0|
|shareholders less the||113,441,715.91||136,799,116.72|-17.07%||
|||||||2|
|non-recurring items, in|||||||
|CNY|||||||
|Net cash flows arising|396,236,992.41||289,189,630.97||||
|from operating activities,|||||37.02%|79,047,490.92|
|in CNY|||||||
|Basic earning per share|0.3099||0.3707||||
||||||-16.40%|0.3310|
|(CNY/share)|||||||
|Diluted earning per share|0.3099||0.3707||||
||||||-16.40%|0.3310|
|(CNY/share)|||||||
|Return on equity,|||||||
|||7.24%||8.62%|-1.38%|8.69%|
|weighted average (%)|||||||
||||||Increase/decrease at the end ofthe year overthe end of theprevious year||
|||End of 2015||End of 2014||End of 2013|
||4,246,670,045.02||3,657,781,647.20|||3,558,702,591.|
|Total assets, in CNY|||||16.10%||
|||||||28|
|Net assets attributable to|2,299,215,650.21||1,633,401,930.64||||
|||||||1,536,434,684.|
|the Company’s|||||40.76%||
|||||||56|
|shareholders (owner’s|||||||

FIYTA HOLDINGS LTD. 2015 ANNUAL REPORT, SUMMARY
||
|-|
|equity attributable to the|
|Company’s shareholders,|
|in CNY)|

2. Financial Data Summary based on Quarters
In CNY 1st
2nd
3rd
4th
|||||||||
|-|-|-|-|-|-|-|-|
|||1st Quarter||2nd Quarter|3rd Quarter||4th Quarter|
|Operating revenue|894,056,260.25||789,736,987.34||784,087,458.61|694,315,506.70||
|Net profit attributable to|44,967,185.35||28,142,234.38||33,505,446.25|15,087,191.50||
|the Company’s||||||||
|shareholders||||||||
|Net profit attributable to|44,409,083.60||27,549,001.67||31,372,100.25|10,142,734.20||
|the Company’s||||||||
|shareholders less the||||||||
|non-recurring profit and||||||||
|loss||||||||
|Net cash flows arising|109,358,176.80||62,895,601.76||86,981,239.77|137,001,974.10||
|from operating activities||||||||

Does there exist significant difference in the foregoing financial data or their total sum from the relevant financial data as disclosed in the quarterly reports and/or semi-annual report.
No
IV. Share Capital and Shareholders
1. Number of Common Shareholders and Preference Shareholders with the Voting Power Recovered and Shareholding of the Top 10 Shareholders
In Shares
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Total preference||||||
||||Total common||||||||Total preference||||
||||||||||shareholders||||||
||Total commonshareholdersin thereportingperiod||shareholders at||||||||shareholders with||||
||||||||||with the voting||||||
||||the end of the||||||||the voting power not||||
||||||||||power||||||
|||33,608|month before||34,695|||||0|recovered at the end|||0|
||||||||||recovered at||||||
||||before the date||||||||of the month before||||
||||||||||the end of the||||||
||||of disclosing the||||||||the day of disclosing||||
||||||||||reporting||||||
||||annual report||||||||the annual report||||
||||||||||period||||||
||Shareholding of the Top 10 Shareholders||||||||||||||
|||||||||||||Pledging or freezing|||
|||||Shareholding|||Number of||||||||
||Names|Nature|||||||Number of restricted shares held|||Status of the|||
|||||proportion|||shares held||||||Quantity||
|||||||||||||shares|||
|AVICInternationalHoldingsLimited||State-owned corporate|41.49%|||162,977,327||0|||||||
|China Life Insurance Limited –Dividend –Dividend toIndividuals--005L-FH002SHEN||Domesticnon-state-ownedcorporate|1.06%|||4,157,800||0|||||||
|ESSENCEINTERNATIONALSECURITIES(HONG KONG)LIMITED||Foreigncorporate|0.66%|||2,610,000||0|||||||
|Dai Wen||Domesticnaturalperson|0.51%|||2,009,321||0|||||||
|CMS (HK)||Foreigncorporate|0.39%|||1,522,341||0|||||||
|Zhou Weixian||Domesticnaturalperson|0.36%|||1,394,600||0|||||||

FIYTA HOLDINGS LTD. 2015 ANNUAL REPORT, SUMMARY
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|Li Yunming||Domesticnaturalperson|0.33%||1,314,100|0|
|YangzhouMunicipalMining Bureau||State-owned corporate|0.30%||1,161,639|0|
|ShanghaiKewenInvestmentManagementCo., Ltd. –KEWEN T KENo. 3InvestmentFund||Domesticnon-state-ownedcorporate|0.29%||1,138,000|0|
|Zeng Xialan||Domesticnaturalperson|0.28%||1,099,080|0|
||Explanation on associated||||||
||relationship or consistent|||The Company has found neither affiliation among the aforesaid shareholders nor concerted actor as|||
|||||specified in the Measures for Administration of Information on the Shareholder Equity Change of Listed|||
||action of the above||||||
|||||Companies.|||
||shareholders||||||
||Note to the shareholders||||||
||involved in securities margin|||Inapplicable|||
||trading (if any)）||||||

2. Total Preference Shareholders and the Shares Held by the Top 10 Preference Shareholders Inapplicable
FIYTA HOLDINGS LTD. 2015 ANNUAL REPORT, SUMMARY Block Diagram of the Ownership and Control Relations between the Company and the Actual Controller
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|State-owned Assets Supervision and AdministrationCommission of the State Council100%||||
|National Councilfor Social SecurityFund|Beijing Putuo HanhuaInvestmentManagement Center|Aviation IndustryCorporation of China|AVIC CCB Aviation Industry EquityInvestment (Tianjin) Co., Ltd.|
|14.31% 14.31% 62.52% 8.86%CATIC International Holdings Limited100%37.50% AVIC International Shenzhen Company Limited33.93%AVIC International Holdings Limited37.15%Fiyta Holdings Ltd.||||

FIYTA HOLDINGS LTD. 2015 ANNUAL REPORT, SUMMARY Discussion and Analysis of the Management
V.
1. Business Operation Summary in the Reporting Period
In the reporting period, the development ofChina’s economy was slowing down and the consumption market was not so flourishing. Such a situation has resulted in a big pressure upon the business of watch industry. Being confonted with the extremely challenging market environment, the Company, based on the idea of striving to be better and seeking improvement through innovation, took the brand building strategy as the guidance, focused on the annual work theme of “values, innovation, adjustment and profit”, further propelled construction of the business model of “products+ channels”, and achieved significant progress in brand building, quality service, product innovation, strategic human resources, knowledge management, etc. Based on establishment of the innovation system of creating values for customers, devoted great efforts to in carrying out the innovation practice work with whole employees involved; keenly looked into the market changes, positively optimized and adjusted the channel structure, devoted great efforts in research and development and timely launched new products; focused on efficiency improvement, emphasized such management items as “per unit yield improvement”, “invesntory turnover improvement” and “increasing revenue and reducing expenditure”; enthusiastically made use of the Internet and energetically developed e-commerce and newly-developing business, realized precision brand marketing and effective communication. In the reporting period, the whole colleagues of FIYTA successfully overcomed all difficulties with their courage, passion, wisdom and sweat and reduced unfavorable influences brought about by the rapid change of the environment, timely adjusted the operation strategy and integrated cores and optmized the businesses, insisted on sustainable development of theCompany’s multiple brands and multi-channel business. As a result, the Company realized sales revenue amounting to CNY 3,162,196,212.90 in the whole year, dropped by3.54% over the previous year; realized net profit attributed to the shareholders amounting to CNY 121,702,057.44, dropped by16.41% over the previous year; and net cash flow arising from the operating activities amounting to CNY 396,236,992.41.
Under the circumstance of general declining of the domestic watch industry in the reporting period, FIYTA carried out the work in such dimensions as “per unit yield improvement, channel expansion, brand promotion, shopping guide team building” at deepened level, developed the market channels at depth, integrated and optimized the business models, vigorously fostered dealers, reinforced the ability of communication with customers. As a result, FIYTA watch channel quality and thecustomers’ satisfaction have been constantly improved; the celebrity endorsement validation and the reputation of the brand have been continuously enhanced; the product R& D and design ability have been further improved. In the reporting year, the Company once again honorably gained the title of “Industrial Design Center at National Level” which keeps pace with the "Technology Center at National Level”, a title which the Company has been enjoying, which has compacted the development platform supported with own watch brands. The Company has kept developing e-commerce, BRAND GALLERY and repairing services; and explored innovation in business models based on the customer experience upgrading and the Internet based idealogy. With the unfavorable influence from the tremendous flactuation of the domestic capital market and change of the consumption environment of the industrial market, growth of the revenue from FIYTA watches significantly slowed down over the previous year. In the reporting year, the Company realized operating revenue amounting to CNY 885,294,253.56, with a year-on-year growth rate of3.36%.
In the reporting period, being faced with the challenge from the persistent gliding of the market of medium and high end watches, Shenzhen Harmony World Watches Center Co., Ltd. has been closely centering on the annual work theme of “values, adjustment, foundation and profit” and taking efficiency improvement as the objective, vigorously optimized the shops, brands and stock patterns; laid a solid foundation in the management work, continuously carried out the special work of “per unit yield improvement”, “stopping or reducing loss”, and “stock structure optimization” etc., improved the profit making ability of the shops, greatly enforced stock consumption, timely closed deficit making shops; vigorously developed repairing and technical service businesses, carried out various items of business innovation work based on the Internet related ideas. However, as the consumption market of domestic famous brand watches is depressed in general, HARMONY realized sales income from famous watches
FIYTA HOLDINGS LTD. 2015 ANNUAL REPORT, SUMMARY amounting to CNY 2,139,277,415.85, dropped by6.92% on year-on-year basis.
In the reporting period, the income from theCompany’s properties kept steady growth.
The Company has successfully finished the work of non-public issuing of A-shares, from which the Company raised net proceeds amounting to CNY 582,924,373.62. The newly added 45,977,011 shares were listed on January 15, 2016.
2. Did there exist any significant change in the principal business in the reporting period
No.
3. Products whose revenue or profit takes over10% of theCompany’s revenue or profit from the principal businesses
Inapplicable
4. Did there exist seasonal or periodic charateristics necessary to pay special attention to No.
5. Note to operating revenue, operation cost or total profit attributable to theCompany’s common shareholders in the reporting period or composition of significant change in the previous reporting period
Inapplicable
6. Potential suspension and delisting
Inapplicable
VI. Matters concerning the Financial Report
1. Note to the change in the accounting policy, accounting estimate and accounting method in comparison with the financial report of the previous year
Inapplicable
2. Note to the situation that it is necessary to make retrospective restatement to order to correct the serious accounting errors in the reporting period
Inapplicable
3. Note to the change of the scope of the consolidated statements in comparison with the previous year.
Inapplicable
FIYTA HOLDINGS LTD. 2015 ANNUAL REPORT, SUMMARY 4. Explanation of the Board of Directors and the Supervisory Committee pm the QualifiedAuditor’s Report for the Reporting Period Issued by the CPAs
Inapplicable