FIYTA Holdings Ltd. 2014 Semi-Annual Report FIYTA Holdings Ltd.
2014 Semi-Annual Report
August, 2014
FIYTA Holdings Ltd. 2014 Semi-Annual Report Section 1 Important Notice, Table of Contents and Definitions The Board of Directors, the Supervisory Committee, directors, supervisors and senior executives hereby individually and collectively accept responsibility for the correctness, accuracy and completeness of the contents of this report and confirm that there are neither material omissions nor errors which would render any statement misleading.
With the exception of the following directors, all the other directors personally attended the Board Meeting for reviewing the Semi-annual Report
|||||
|-|-|-|-|
|Names|Titles|Cause(s)|Proxies|
|Huang Yongfeng|Director|Business travel|Lai Weixuan|
|Liu Aiyi|Director|Business travel|Zhong Sijun|
|Zhang Shunwen|Independentdirector|Business travel|Wang Yan|

The Company is not going to conduct interim dividend distribution, bonus share distribution or conversion of reserve into share capital.
Mr. Lai Weixuan, the Company leader, Mr. Hu Xinglong, the chief financial officer and Mr. Hu Xinglong, the person in charge of the accounting department (the person in charge of the accounting) hereby confirm the authenticity and completeness of the financial report enclosed in this annual report.
This Semi-annual report is prepared in both Chinese and English. Should there be any difference in understanding between the two, the Chinese version shall prevail.
FIYTA Holdings Ltd. 2014 Semi-Annual Report Table of Contents
2014 Semi-Annual Report
Section 1 Important Notice, Table of Contents and Definitions
Section 2 Company Profile
Section 3 Financial and Business Highlights
Section 4 Report of the Board of Directors
Section 5 Significant Events
Section 6 Change of Shares and Particulars about the Shareholders
Section 7 About Preferred Shares
Chapter 8 Directors, Supervisors and Senior Executives
Section 9 Financial Report
Section 10 List of Documents Available for Inspection
FIYTA Holdings Ltd. 2014 Semi-Annual Report Definitions
||||
|-|-|-|
|Terms to be defined|Refers to|Definition|
|This Company, the Company or|||
||Refers to|FIYTA Holdings Ltd.|
|Fiyta|||
|AVIC International Holdings|Refers to|AVIC International Holdings Limited|
|||Shenzhen Harmony World Watches Center Co.,|
|HARMONY|Refers to||
|||Ltd.|
|Rainbow Supermarket|Refers to|Rainbow Supermarket Co., Ltd.|
|CATIC Real Estate|Refers to|CATIC Real Estate Co., Ltd.|
|CATIC Property|Refers to|CATIC Property Management Co., Ltd.|

FIYTA Holdings Ltd. 2014 Semi-Annual Report Section 2 Company Profile
I. Company Profile
|||||
|-|-|-|-|
|Abbreviation of the||||
||FIYTA A, FIYTA B|Stock Code|000026 and 200026|
|stock||||
|Stock Exchange Listed||||
||Shenzhen Stock Exchange|||
|with||||
|Company Name in|飞亚达（集团）股份有限公司|||
|Chinese||||
|Abbreviation of||||
|company name in|飞亚达公司|||
|Chinese (if any)||||
|Company Name in||||
|English (if any)|FIYTA HOLDINGS LTD.|||
|Abbreviation of||||
|Company Name in|FIYTA|||
|English (if any)||||
|Legal Representative of|Lai Weixuan|||
|the Company||||

II. Liaison Person and Way of Communication
||||
|-|-|-|
||Secretary of the Board|Securities Affairs Representative|
|Names|Chen Libin|Zhang Yong|
||20th Floor, FIYTA Technology|20th Floor, FIYTA Technology|
|Liaison Address|Building, Gaoxin S. Road One,|Building, Gaoxin S. Road One,|
||Nanshan District, Shenzhen|Nanshan District, Shenzhen|
|Tel.|0755－86013669|0755－86013669|
|Fax|0755－83348369|0755－83348369|
|E-mail|investor@fiyta.com.cn|investor@fiyta.com.cn|

III. Other Information
1. Way of Communication with the Company
There is no change in theCompany’s registered address, office address, postal code, website, e-mail address in the reporting period. For the detail, please refer to 2013 Annual Report
2. Information Disclosure and Place of Regular Reports Prepared for Inquiry
There is no change in the name of the newspapers designated for disclosing the information, internet
FIYTA Holdings Ltd. 2014 Semi-Annual Report web site designated by China Securities Regulatory Commission for publishing thecompany’s semi-annual report: and place of thecompany’s semi-annual report prepared for inquiry. For the detail, please refer to 2013 Annual Report
3. Changes of the Registration Data
There is no change in such registration data as the registration date and place, the registration number of the business licence, tax registration number, organization code, etc. of the Company during the reporting period. For more information, refer to 2013 Annual Report.
FIYTA Holdings Ltd. 2014 Semi-Annual Report Section 3 Financial and Business Highlights
I. Key Accounting Data and Financial Indicators
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?
□ Yes√ No
|||||
|-|-|-|-|
||||Increase/decrease in|
||||the reporting period|
|||Same Period of the||
||Reporting period||vs the corresponding|
|||Previous Year||
||||period of the previous|
||||year (%)|
|Revenues in CNY|1,642,614,790.97|1,508,353,766.86|8.90%|
|Net profit attributable to the|88,283,873.10|69,097,419.87||
||||27.77%|
|Company’s shareholders, in CNY||||
|Net profit attributable to the||||
|Company’s shareholders less the||||
||86,173,160.01|68,078,232.08|26.58%|
|non-recurring gains/losses, in||||
|CNY||||
|Net cash flows arising from|137,998,679.39|133,994,800.57||
||||2.99%|
|operating activities, in CNY||||
|Basic earning per share|0.225|0.176||
||||27.84%|
|(CNY/share)||||
|Diluted earning per share|0.225|0.176||
||||27.84%|
|(CNY/share)||||
|Net assets-income ratio ,||||
||5.58%|4.68%|0.90%|
|weighted average, (%)||||
||||Increase/decrease of|
||End of the reporting|End of the previous|the report period vs|
||period|year|the same period of the|
||||previous year (%)|
|Total assets, in CNY|3,689,550,705.59|3,558,702,591.28|3.68%|
|Net assets attributable to the|1,587,697,962.33|1,536,434,684.56||
||||3.34%|
|Company’s shareholder (CNY)||||

II. Difference in the Accounting Data based on the Accounting Standards Outside Mainland China
1. Differences in net profit and net assets in the financial report disclosed according to both the
intarnational accounting standards (IAS) and the Chinese accounting standards (CAS).
Inapplicable
2. Differences in net profit and net assets in the financial report disclosed according to both the
FIYTA Holdings Ltd. 2014 Semi-Annual Report accounting standards outside the Mainland Chinae and the Chinese accounting standards (CAS). Inapplicable
Inapplicable
III. Non-recurring gain/loss items and the amount involved
In CNY
||||
|-|-|-|
|Items|Amount|Note:|
||6,708.57|It refers to the gain/lossfrom disposal of the officefixed assets in the currentperiod|
|Loss from disposal of non-current assets, including|||
|the part written-off with the provision for impairment|||
|of assets|||
|Government subsidy recognized in current gains|1,726,500.00|For the detail, refer toNote 63 (2) governmentsubsidy in the currentperiod.|
|and losses (excluding those closely related to the|||
|Company’s business and granted under the state’s|||
|policies according to certain quota of amount or|||
|volume)|||
||906,133.12|Other variousnon-operating revenueand expenditures|
|Income and expenses from the business other than|||
|the above items|||
|Less: Amount affected by the income tax|528,628.60||
|Total|2,110,713.09|--|

For theCompany’s non-recurring gain/loss items as defined in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering their Securities to the Public– Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering their Securities to the Public– Non-recurring Gains and Losses which have been defined as recurring gains and losses, it is necessary to explain the reason. Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report Section 4 Report of the Board of Directors
I. Overview
During the reporting period, the domestic economic followed the decelerated growth state, the Company was confronted with bigger pressure from the market environment in its principal business especially from the high-end consumption market. Under the circumstance that the macro-market environment was hardly determined, the Company, focusing on the annual strategic theme of “deepening the values, improving the efficiency and enhancing integration”, rose to the challenge, forged ahead with determination, kept laying the foundation of various basic work, exerted itself on improving the output of individual shops and efficiency of asset operation. During the reporting period, the Company was improving its overall earning power, the asset structure was continuously optimized and the operational cash flow achieved continuous improvement. The Company realized sales income amounting to CNY1,642,614,790.97, an8.90% year-on-year growth over the previous year, realized net profit amounting to CNY 88,283,873.10, a27.77% year-on-year growth over the previous year; the net cash flow arising from the operation activities amounted to CNY 137,998,679.39.
During the reporting period, the Company still took the brand strategy as the guidance, carried forward integration and upgrading of the key value links by means of the business model of “product+ channel”; took “burning the passion, improving the capacity, returning to the base and striving to create efficiency” with the work theme with the Harmony World Watch as the key channel brand, focusing onBSC²+OPERATION, enhanced construction of the core competence and construction of Harmony Brand, centering on the principal line of work– “improving the unit output and improving the efficiency”, innovated the operation model, looking for opportunity in the adverse situation, realized sales income amounting to CNY 1,164,509,801.05 with a2.74% growth. With FIYTA as theCompany’s key product, the Company takes “focusing on per unit yield, development platform, enhancing teamwork and improving efficiency” as the work core, promoted sales growth by various means, such as the theme competition of “Soccer Hero Legend”, sales promotion during holidays and festivals, promotion of new arrivals, etc.; enriched the categories of the existing channels by vigorously developing e-commerce, enhancing support to distributors, continuously reinforcing overseas channel construction, developing more brands, etc. and improved the quality of channels; steadily improved the gross profit rate level of products by restructuring the products, raising the retail price of series products, and controlling the product costs, and improved the brand awareness and reputation by means of news release of the new product arrival, BASEL Watch Expo, SHENZHEN Watch Expo, thespokespersons’ promotion activities, etc. During the reporting period, the Company kept quick growth in its FIYTA Watch Industry, realized sales income amounting CNY 391,786,607.01, a26.59% growth.
During the reporting period, the Company kept carrying forward in property management, construction of Guangming watch production base and the innovation work in different management practices.
FIYTA Holdings Ltd. 2014 Semi-Annual Report II. Analysis on the Principal Business
Changes of the major financial data on year-on-year basis
In CNY
||||||
|-|-|-|-|-|
|||Same period of the|||
||||Year-on-year||
||Reporting Period|previous year||Cause of change|
||||increase/decrease||
|Operating revenue|1,642,614,790.97|1,508,353,766.86|8.90%||
|Operating costs|1,038,060,709.77|970,869,666.64|6.92%||
|Selling expenses|349,761,320.39|315,335,871.86|10.92%||
|Administrative|84,852,192.39|78,223,983.74|||
||||8.47%||
|expenses|||||
|Financial expenses|54,196,678.49|47,823,408.80|13.33%||
|Income tax|16,573,527.31|13,755,185.77|||
||||20.49%||
|expense|||||
|Income tax|||||
||11,886,999.88|9,629,287.15|23.45%||
|expenses|||||
|Investment in R & D|137,998,679.39|133,994,800.57|2.99%||
||-77,188,078.38|-57,808,318.28||Mainly referring to|
|||||the increase in|
|||||investment in the|
|Net cash flow|||||
|||||new watch|
|arising from|||33.52%||
|||||production base|
|operating activities|||||
|||||project at|
|||||Guangming New|
|||||Zone|
|Net cash flow|-8,915,791.60|-120,444,793.36|||
|arising from|||||
||||-92.60%||
|investment|||||
|activities|||||
|Net increase of|52,180,646.25|-44,930,869.69|||
|cash and cash|||||
|equivalent|||||

Great change has taken place in profit composition or profit sources in the reporting period
Inapplicable
Future development and plan extended to the reporting period as disclosed in the documents of public disclosure, such as thecompany’s prospectus, letter of intent on the offering and asset reorganization report, etc.
Inapplicable
Review and summary of the progress of the operation plan in the reporting period the Company
disclosed previously
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report III. Composition of Principal Businesses
In CNY
||||||||
|-|-|-|-|-|-|-|
||||||Increase/decr|Increase/decr|
|||||Increase/decr|||
||||||ease of|ease of gross|
|||||ease of|||
||||||principal|profit rate|
|||||revenue in|||
||Operating|Operating|Gross margin||business cost|over the|
|||||the same|||
||revenue|costs|(%)||over the|same period|
|||||period of the|||
||||||same period|of the|
|||||previous year|||
||||||of previous|previous year|
|||||(%)|||
||||||year (%)|(%)|
|Sectors|||||||
||1,164,509,80|879,130,610.|||||
|Commerce|||24.51%|2.74%|3.70%|-0.70%|
||1.05|80|||||
||420,802,528.|148,417,710.|||||
|Industry|||64.73%|31.02%|34.02%|-0.79%|
||52|07|||||
||42,837,767.1||||||
|Leasehold||6,368,580.17|85.13%|9.24%|-5.56%|2.33%|
||7||||||
|Products|||||||
|Sales of|||||||
||1,164,509,80|879,130,610.|||||
|famous brand|||24.51%|2.74%|3.70%|-0.70%|
||1.05|80|||||
|watches|||||||
|Sales of|||||||
||391,786,607.|131,829,910.|||||
|FIYTA|||66.35%|26.59%|26.32%|0.07%|
||01|71|||||
|watches|||||||
|Property|42,837,767.1||||||
|||6,368,580.17|85.13%|9.24%|-5.56%|2.33%|
|leasehold|7||||||
|Precision|29,015,921.5|16,587,799.3|||||
||||42.83%|148.59%|160.17%|-2.54%|
|machining|1|6|||||
|Regions|||||||
|Northeast|152,503,099.|106,837,154.|||||
||||29.94%|17.25%|12.27%|3.10%|
|China|71|05|||||
||241,303,219.|174,784,558.|||||
|North China|||27.57%|-16.91%|-20.19%|2.97%|
||12|99|||||
|Northwest|287,448,335.|206,860,118.|||||
||||28.04%|6.42%|3.58%|1.98%|
|China|94|69|||||
|Southwest|164,673,874.|114,716,453.|||||
||||30.34%|20.00%|16.49%|2.10%|
|China|58|05|||||
||219,417,606.|149,575,845.|||||
|East China|||31.83%|22.91%|19.53%|1.92%|
||86|53|||||
|South China|562,803,960.|281,142,770.|50.05%|15.45%|23.44%|-3.24%|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||
|-|-|
|53|73|

IV. Analysis on Core Competitiveness
TheCompany’s core competitiveness is a collection of techniques and technologies which enable the Company to provide the customers with specific value and is the competitiveness which a series of products or services must rely on in process of taking a leading position. It consists of the ability of brand building, ability of high quality services, ability of product innovation, ability of knowledgement management and ability of management of strategic human resource.
During the reporting period, the Company achieved great success in construction of the platform of science and technology and technology innovation. After over adecade’s unremitting efforts, theCompany’s technology center was successfully certified as a national enterprise technology center in 2013 relying on its outstanding achievement in construction of the innovation mechanism, construction of the technology center platform, construction of the innovation environment and talent cultivation and technology R& D and achievements, etc. TheCompany’s science& technology project was awarded one second prize of the Award for Scientific and Technological Advancement of Guangdong Province; its stereoscopic reading watch was honorably awarded the Red Dot Design Award; during the first half year, the Company was authorized 3 patents for invention, 1 patent for utility models and 4 design patents; took lead or participated in preparation or amendment of 6 national standards and totally issued 9 industrial standards.
V. Analysis on Investment Status
1. External Equity Investment
(1) External Investment
Inapplicable
(2) Holding of the Equipty in Financial Enterprises
Inapplicable
(3) Investment in Securities
Inapplicable
2. Entrusted Financing, Investment in Derivative Products and Entrusted Loan
(1) Entrusted Financing
Inapplicable
(2) Investment in Derivatives
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report (3) Entrusted Loan
Inapplicable
3. Application of the Raised Capital
(1) General Application of the Raised Capital
In CNY 10,000
|||
|-|-|
|Total raised capital|40,000|
|Total raised capital invested in the reporting||
||40,000|
|period||
|Total raised capital accumulatively invested|40,000|
|Total raised capital whose application has||
||0|
|been changed in the reporting period||
|Total raised capital whose application has||
||0|
|been changed accumulatively||
|Proportion of the total raised capital whose||
|application has been changed|0.00%|
|accumulatively||
|Note to Application of the Raised Capital||
|The Company held the 33rd meeting of the Sixth Board of Directors on June 19, 2012. The meeting||
|reviewed and approved the Proposal of Issuing Company Bonds, etc. according to which, the||
|Company planned to issue company bonds with a size not exceeding CNY400 million and with a term||
|not exceeding 5 years (with 5 years inclusive) which would be used for replacing bank loan and||
|replenishing the working capital. On September 9, 2012, approved through verification by China||
|Securities Regulatory Commission (CSRC) with Document ZHENG JIAN XU KE [2012] No. 1209, the||
|Company was approved to issue company bonds with the size not exceeding CNY 400 million. The||
|Company issued CNY 400 million of bonds in the current period. After deduction of the issuing costs,||
|the net raised capital amounting to CNY396.9 million was remitted to the bank account designated by||
|the Company on March 5, 2013.||
|RSM China CPAs, the CPAs engaged by the Company issued the capital verification reports of||
|ZHONG RUI YUE HUA YAN ZI [2013] No. 0053, ZHONG RUI YUE HUA YAN ZI [2013] No. 0054 and||
|ZHONG RUI YUE HUA YAN ZI [2013] No. 0055 respectively for the frozen capital for subscription of||
|the on-line bond issuing, the frozen capital for subscription of the off-line placement and the actual||
|raised capital conditions. Approved by Shenzhen Stock Exchange with Document SHEN ZHENG||
|SHANG [2013] No. 99, the bonds have been listed for trading with both SZSE Centralized Bidding||
|System and the Comprehensive Agreement Based Transaction Platform commencing from March 29,||
|2013 with the abbreviation of the security as “12 YADA BOND” and security code as “112152”. The||
|issuing of the company bonds has been completed. The capital raised from the issuing was remitted to||
|the bank account designated by the Company on March 5, 2013. Up to now, the Company has used up||

FIYTA Holdings Ltd. 2014 Semi-Annual Report all the raised capital and no change has taken place in the application purpose of the raised capital. (2) Promised Projects with Raised Capital
In CNY 10,000
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Has|
||||||Amount|Investmen|Date when||||
||Has the|||||||||significant|
|||Total|||accumulati|t progress|the project||Has the||
||project||Total|||||Result||change|
|Promised investment||promised||Amount|vely|by the end|has||predicted||
||been||investmen|||||realized in||taken|
|projects and investment||investmen||invested in|invested|of the|reached||operation||
||changed||t after|||||the||place in|
|with the over-raised||t with||the report|up to the|report|the||result||
||(including||adjustmen|||||reporting||the|
|capital||raised||period|end of the|period|predicted||been||
||partial||t (1)|||||period||feasibility|
|||capital|||report|(3) =|applicable||reached?||
||change)|||||||||of the|
||||||period (2)|(2)/(1)|status||||
|||||||||||project?|
|Investment projects as committed|||||||||||
|Repayment of bank loan|No|30,000|30,000|30,000|30,000|100.00%||0|Yes|No|
|Replenishing the|||||||||||
||No|10,000|10,000|10,000|10,000|100.00%||0|Yes|No|
|working capital.|||||||||||
|Sub-total of investment|||||||||||
||--|40,000|40,000|40,000|40,000|--|--|0|--|--|
|projects as committed|||||||||||
|Investment with over-raised capital|||||||||||
|Inapplicable|||||||||||
|Sub-total of investment|||||||||||
||--|0|0|0|0|--|--||--|--|
|with over-raised capital|||||||||||
|Total|--|40,000|40,000|40,000|40,000|--|--|0|--|--|
|Amount of over-raised|||||||||||
|capital, application and|Inapplicable||||||||||
|progress of use|||||||||||
|Change of the|||||||||||
|implementation site of the|||||||||||
||Inapplicable||||||||||
|projects invested with the|||||||||||
|raised capital|||||||||||
|Adjustment of the|||||||||||
|implementation method|||||||||||
||Inapplicable||||||||||
|of the projects invested|||||||||||
|with the raised capital|||||||||||
|About the initial|||||||||||
|investment in the projects|||||||||||
|planned to be invested|Inapplicable||||||||||
|with the raised capital|||||||||||
|and the replacement|||||||||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||
|-|-|
|Using the idle raised||
|capital to supplement the||
||Inapplicable|
|working capital on||
|temporary basis||
|Balance of the raised||
|capital incurred in||
|process of project|Inapplicable|
|implementation and the||
|cause||

(3) Change of the Projects Invested with the Raised Capital
Inapplicable
(4) Projects Invested with the Raised Capital
Inapplicable
4. Analysis on Principal Subsidiaries and Mutual Shareholding Companies
Particulars about the Principal Subsidiaries and Mutual Shareholding Companies
In CNY
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Leading|||Net assets||Operating||
|Company||Sectors||Registered|Total assets,||Turnover in||Net profit (in|
||Company type||products and|||(CNY)||profit (in||
|Names||engaged in||capital|in CNY||CNY||CNY)|
||||services|||||CNY)||
||||Mainly|||||||
||||engaged in|||||||
||||sales of|||||||
||||world|||||||
|Shenzhen||||||||||
||||famous|||||||
|Harmony||||||||||
||||brand watch,|||||||
|World||||600,000,000(|2,206,248,99|691,348,975.|1,202,401,13|9,776,619.||
||Subsidiary|Retail|including||||||8,185,892.09|
|Watches||||RMB)|0.27|92|1.71|14||
||||purchase,|||||||
|Center Co.,||||||||||
||||sales and|||||||
|Ltd.||||||||||
||||maintenance|||||||
||||service of|||||||
||||timepieces|||||||
||||and parts|||||||
||||Sales and|||||||
||||repairing of|||||||
||||watches and|||||||
|FIYTA Sales|Subsidiary|||50,000,000(|655,569,895.|62,017,094.2|389,459,088.|37,223,417||
|||Retail|spares and||||||26,455,502.46|
|Co., Ltd.||||RMB)|49|5|51|.08||
||||parts and|||||||
||||sales of|||||||
||||jewelry and|||||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||ornments|||||||
||||Mainly|||||||
||||engaged in|||||||
||||production|||||||
||||and sales of|||||||
||||FIYTA|||||||
||||watches,|||||||
|Shenzhen||||||||||
||||including|||||||
|FIYTA||||||||||
||||productin|||||||
|Sophisticate||||10,000,000(|278,483,311.|78,342,853.4|215,400,134.|72,572,293||
||Subsidiary|Manufacture|and||||||62,388,478.94|
|d Timepieces||||RMB)|02|1|36|.63||
||||maintenance|||||||
|Manufacture||||||||||
||||of clocks and|||||||
|Co., Ltd.||||||||||
||||watches, and|||||||
||||driving units,|||||||
||||spares and|||||||
||||parts,|||||||
||||sophisticated|||||||
||||timepieces|||||||
||||R & D,|||||||
||||production|||||||
||||and sales of|||||||
||||watches,|||||||
|Shenzhen||||||||||
||||production,|||||||
|FIYTA||||||||||
||||machining,|10,000,000(|72,320,900.2|33,933,925.6|81,589,929.1|12,573,187||
|Technology|Subsidiary|Manufacture|||||||11,529,953.23|
||||sales and|RMB)|7|5|3|.71||
|Development||||||||||
||||technology|||||||
|Co., Ltd.||||||||||
||||development|||||||
||||of|||||||
||||sophisticated|||||||
||||parts.|||||||
||||Mainly|||||||
||||engaged in|||||||
||||trade and|||||||
|FIYTA (Hong||||||||||
||||overseas|65,060,000(|379,084,989.|134,334,389.|68,195,453.8|3,589,603.||
|Kong)|Subsidiary|Retail|||||||2,375,979.95|
||||market|HKD)|15|18|9|26||
|Limited||||||||||
||||development|||||||
||||of FIYTA|||||||
||||watches|||||||
||||Sales of|||||||
|Shenzhen|||clocks and|||||||
|Symphony|||watches and|5,000,000(R|26,299,186.8|-3,191,293.3||-601,988.8||
||Subsidiary|Retail|||||4,610,931.48||-601,988.83|
|Trading Co.,|||gifts and|MB)|3|5||3||
|Ltd.|||consultation|||||||
||||of relevant|||||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||information|||||||
||||and other|||||||
||||domestic|||||||
||||trading|||||||
|Shanghai|Mutual||Sales of|||||||
|Watch|shareholding||watches and|15,350,000(|103,188,229.|82,840,629.8|52,972,924.3|||
|||Manufacture||||||979,878.06|1,076,068.67|
|Industry Co.,|company||spares and|RMB)|94|9|3|||
|Ltd.|||parts|||||||

5. Projects Invested with Funds not Raised through Share Offering
Inapplicable
VI. Prediction of the Operation Performances from January to September 2014 Prediction of the possibility of the accumulated net profit from the year beginning to the end of the next reporting period being of loss; or warning for big changes in the net profit in comparison with the same period of the previous year and the reasons
Inapplicable
VII. Explanation of the Board of Directions and the Supervisory Committee on the QualifiedAuditor’s Report Issued by the CPAs
Inapplicable
VIII. Explanation of the Board of Directions to the Matters in Connection with “QualifiedAuditors’ Report” of the Previous Year
Inapplicable
IX. Implementation of Profit Distribution in the Reporting Period
Implementation or adjustment of the profit distribution plan, especially cash dividend plan and plan for conversion of capital reserve into share capital implemented in the reporting period
2013 Profit Distribution Plan was reviewed and approved at the
7th
meeting of the Seventh Board of Directors held on February 27, 2014 and 2013 Annual General Meeting held on June 10, 2014. According to the plan, the Company took the share capital as at December 31, 2013 totalling 392,767,870 shares as the base, and would distribute cash dividend at rate of CNY 1.00 for every 10
shares (with tax inclusive) to all the shareholders. The total cash dividend to be distributed amounted to
CNY 39,276,787.00. The profit distribution was completed by August 4, 2014. For more information,
refer to the Announcement on the Resolution of the
8th
Meeting of the Seventh Board of Directors No.
FIYTA Holdings Ltd. 2014 Semi-Annual Report 2014-008, Announcement on the Resolution of 2013 Annual General Meeting No. 2014-018 and the Announcement on the Implementation of the Equity Distribution of Year 2013 No. 2014-019.
|||
|-|-|
|Special description of the cash dividend distribution policy||
|Whether the plan complies with the Articles of Association||
||Yes|
|and resolution of the General Meeting:||
|Whether the dividend distribution rate and proportion are||
||Yes|
|clear and definite:||
|Whether the relevant decision making procedures and||
||Yes|
|mechanism are complete:||
|Have the independent directors have done their duty and||
||Yes|
|brought their due role into full play:||
|Have the minority shareholders fully expressed their||
|opinions and been given the opportunity of fully||
||Yes|
|expressing their opinions and appeal and has their legal||
|interests have been fully protected:||
|Are any adjustment or alteration, conditions and||
|procedures of the cash dividend policy in compliance or|Inapplicable|
|transparent:||

X. Preplan for Profit Distribution and Conversion of Capital Reserve into Share Capital
Inapplicable
XI. Statement of such activities as reception, research, communication, interview in the reporting period
|||||||
|-|-|-|-|-|-|
||||||Discussion topics and|
|Reception Time|Reception place|Way of reception|Types of Visitors|Visitors received||
||||||provision of materials|
|||||Shangcheng Assets||
|||||Management Co.,|Development trend of the|
|||||Ltd.,|domestic luxury goods sector,|
|||||Zhongzhao|some measures concerning|
|||||Investment|the Company’s strategic|
|||||Management Co.,|development, brand|
|January 3, 2014|Company|On-Site Survey|Institution|Ltd., China|construction, channel|
|||||Merchants Fund|management in the past three|
|||||Management Co.,|years. Provision of the|
|||||Ltd., Sunshine &|Company’s public brochures|
|||||Fortuneguard Asset|in 2014.|
|||||Management Co.,||
|||||Ltd., and Minsheng||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||
|-|-|-|-|-|-|
|||||Securities Co., Ltd.||
|||||Huaxi Securities Co.,||
|||||Ltd., Greenwoods||
|||||Assets Management||
|||||Co., Ltd., Great Wall||
|||||Securities Co., Ltd.,||
|||||Huashang Fund||
|||||Management Co.,|Development trend of the|
|||||Ltd., Guotai Junan|domestic luxury goods sector,|
|||||Securities Co., Ltd.,|some measures concerning|
|||||UBS Securities Co.,|the Company’s strategic|
|||||Ltd., IVY Assets|development, brand|
|March 7, 2014|Company|On-Site Survey|Institution|Management Co.,|construction, channel|
|||||Ltd., Soochow Asset|management in the past three|
|||||Management Co.,|years. Provision of the|
|||||Ltd., Infore Capital|Company’s public brochures|
|||||Management Co.,|in 2014.|
|||||Ltd., Guangzhou||
|||||Guangheng||
|||||Securities Research||
|||||Institute Co., Ltd. and||
|||||Haitong Securities||
|||||Assets Management||
|||||Co., Ltd.||
|||||Shenzhen Jingliang||
|||||Investment||
|||||Management Co.,||
|||||Ltd., China Galaxy||
|||||Securities Co., Ltd.,||
||||||Development trend of the|
|||||Minsheng Securities||
||||||domestic luxury goods sector,|
|||||Co., Ltd., Rongtong||
||||||some measures concerning|
|||||Fund Management||
||||||the Company’s strategic|
|||||Co., Ltd., Guangdong||
||||||development, brand|
|||||New Value||
|May 7, 2014|Company|On-Site Survey|Institution||construction, channel|
|||||Investment Co., Ltd.,||
||||||management in the past three|
|||||China Southern Fund||
||||||years. Provision of the|
|||||Management Co.,||
||||||Company’s public brochures|
|||||Ltd., First Capital||
||||||in 2014.|
|||||Securities Co., Ltd.,||
|||||Penghua Fund||
|||||Management Co.,||
|||||Ltd., Shanghai Right||
|||||Share Investment||
|||||Management Co.,||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||
|-|-|-|-|-|-|
|||||Ltd. and Lion Fund||
|||||Management Co.,||
|||||Ltd.||
|||||Boshi Fund||
|||||Management Co.,||
|||||Ltd., Fanglian||
|||||Securities Co., Ltd.,||
|||||Shenzhen Yujin||
|||||Investment Co., Ltd.,||
|||||China Investment||
|||||Securities Co., Ltd.,||
|||||Venus Investment||
|||||Management Co.,||
||||||Development trend of the|
|||||Ltd., Bank of China||
||||||domestic luxury goods sector,|
|||||Fund Management||
||||||some measures concerning|
|||||Co., Ltd., Infore||
||||||the Company’s strategic|
|||||Capital Management||
||||||development, brand|
|||||Co., Ltd., Guotai||
|May 15, 2014|Company|On-Site Survey|Institution||construction, channel|
|||||Junan Securities Co.,||
||||||management in the past three|
|||||Ltd., Changjiang||
||||||years. Provision of the|
|||||Securities Co., Ltd., E||
||||||Company’s public brochures|
|||||Fund Management||
||||||in 2014.|
|||||Co., Ltd., Chinese||
|||||Insurance Assets||
|||||Management Co.,||
|||||Ltd., Dongguan||
|||||Securities Co., Ltd.,||
|||||Pacific Assets||
|||||Management Co.,||
|||||Ltd. and Shanghai||
|||||Point Assets||
|||||Management Co.,||
|||||Ltd.||

FIYTA Holdings Ltd. 2014 Semi-Annual Report Section 5 Significant Events
I. Overview of the Corporate Governance
In year 2014, the Company continuously improved theCompany’s corporate governance structure strictly according to the PRC Company Law, the PRC Securities Law and the regulations of China Securities Regulatory Commission concerning governance of listed companies, and tried to enhance construction of modern enterprise system, upgraded the level of regulatory operation of the Company. As a result, there was no discrepancy between the situation of theCompany’s corporate governance and the regulatory documents of China Securities Regulatory Commission concerning governance of listed companies.
The Company established and improved relatively standardized corporate governance structure and rules of procedures strictly according to law, rules and regulations, including the PRC Company Law, and the Articles of Association of the Company, formed a decision-making and operation management system with theShareholders’ Meeting, the Board of Directors, the Supervisory Committee and the management of the Company as the principal structure. They implemented their respective duties according to the PRC Company Law and the Articles of Association.
The General Meeting is theCompany’s supreme organ and has the power of deciding theCompany’s operation policy and investment plan, reviewing and approving theCompany’s annual fincial budget scheme, settlement scheme, profit distribution plan, loss make-up plan, change of the application of the proceeds raised through issuing, etc., makes resolution on increase and decrease of theCompany’s registered capital, issuing bond, etc., election and replacement of directors, non-staff supervisors and decision on their remuneration and way of payment.
The Board of Directors is theCompany’s decision-making organ, takes charge of implementing the decisions made by theShareholders’ General Meeting, assumes responsibility to theShareholders’ General Meeting and reports the work to it; within the authorization from the General Meeting, decides theCompany’s external investment, acquisition and sales of assets, assets pledgement, external guarantee, related transactions, etc., decides establishment of theCompany’s internal management organs, engagement and disengagement of theCompany’s general manager, the Board secretary and other senior executives, etc. The Board of Directors consists of nine directors, including three independent directors. The Board of Directors has established three subordinate special committees, namely the Strategy Committee, the Audit Committee and Nomination, Emolument and Assessment Committee.
The Supervisory Committee is theCompany’s supervisory organ in charge of supervising the directors, managers and other senior executives in performaning duties according to the law and proposes dismissal of any director or
FIYTA Holdings Ltd. 2014 Semi-Annual Report senior executive who breaches the law, the administrative rules and regulations, the Articles of Association or the GeneralMeeting’s resolutions. The Supervisory Committee consists of three supervisors including two staff supervisors.
The management assumes responsibility to the Board of Directors and the General Manager takes full responsibility for theCompany’s routine operation and management and development under the leadership of the Board of Directors, supervises the work of every functional department, assesses the work result of each functional department and coordinate the relationship of all departments.
Note: In case there exists discrepancy between the practical conditions in the corporate governance and the requirements as specified in the PRC Company Law and the relevant regulations of China Securities Regulatory Commission, the Company should disclose the content of such difference and the rectification measures already taken in the reporting period the rectification status. Otherwise, please disclose that “there exists no discrepancy between the practical conditions in the corporate governance and the requirements as specified in the PRC Company Law and the relevant regulations of China Securities Regulatory Commission”.
II. Major Lawsuits and Arbitration Affairs
Inapplicable
III. Media Query
Inapplicable
IV. Bankruptcy or Reorganization Related Events
Inapplicable
V. Asset Transactions
1. Acquisition of Assets
Inapplicable
2. Sales of Assets
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report 3. Enterprise Consolidation
Inapplicable
VI. Implementation of theCompany’s Equity Incentive Plan and its Influences
Inapplicable
VII. Material Related Transactions
1. Related transactions in connection with daily operation
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Proportion|||||
||||Descriptio|Principle of||Amount of||Way of||||
||||||Price of||in the||Similar|||
|||Type of|n of|pricing of||the related||settlement||||
|Related|Relationsh||||related||amount of||market|Disclosure|Disclosure|
|||related|Related|the related||transaction||for the||||
|Parties|ip||||transaction||the similar||price|date|index|
|||parties|Transactio|transaction||(in CNY||related||||
||||||s||transaction||obtainable|||
||||ns|s||10,000)||transaction||||
||||||||s (%)|||||
|||||||||Bank||||
|||Administra|Property||||||||http://www.|
|CATIC|Common|||Negotiated||||account||March 1,||
|||tive|managem|||76.56|100.00%||||cninfo.com|
|Property|controller|||price||||transferen||2014||
|||expenses|ent fee||||||||.cn|
|||||||||ce||||
|||||||||Bank||||
|Rainbow|||Shopping||||||||http://www.|
||Common|Sales||Negotiated||||account||March 1,||
|Supermark|||mall|||153.11|6.55%||||cninfo.com|
||controller|costs||price||||transferen||2014||
|et|||expenses||||||||.cn|
|||||||||ce||||
|||Revenue||||||Bank||||
|Rainbow|||||||||||http://www.|
||Common|from|Sales of|Negotiated||||account||March 1,||
|Supermark||||||3,985.83|2.43%||||cninfo.com|
||controller|principal|goods|price||||transferen||2014||
|et|||||||||||.cn|
|||business||||||ce||||
|||Revenue||||||Bank||||
||||||||||||http://www.|
||Eventual|from|Sales of|Negotiated||||account||March 1,||
|AVIC||||||65.03|0.04%||||cninfo.com|
||controller|principal|goods|price||||transferen||2014||
||||||||||||.cn|
|||business||||||ce||||
|||Revenue||||||Bank||||
|Shennan|||||||||||http://www.|
||Common|from|Sales of|Negotiated||||account||March 1,||
|Circuit Co.,||||||1,500.6|0.91%||||cninfo.com|
||controller|principal|goods|price||||transferen||2014||
|Ltd.|||||||||||.cn|
|||business||||||ce||||
|||Revenue||||||Bank||||
|CATIC|||||||||||http://www.|
||Common|from|Property|Negotiated||||account||March 1,||
|Real||||||75.44|1.76%||||cninfo.com|
||controller|principal|lease|price||||transferen||2014||
|Estate|||||||||||.cn|
|||business||||||ce||||
|CATIC|Common|Revenue|Property|Negotiated||133.03|3.11%|Bank||March 1,|http://www.|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Property|controller|from|lease|price|||account|2014|cninfo.com|
|||principal|||||transferen||.cn|
|||business|||||ce|||
|||Revenue|||||Bank|||
|CATIC|||||||||http://www.|
||Common|from|Property|Negotiated|||account|March 1,||
|Securities,|||||53.68|1.25%|||cninfo.com|
||controller|principal|lease|price|||transferen|2014||
|Co., Ltd.|||||||||.cn|
|||business|||||ce|||
|Shenzhen||||||||||
|||Revenue|||||Bank|||
|CATIC City|||||||||http://www.|
||Common|from|Property|Negotiated|||account|March 1,||
|Developm|||||1.12|0.03%|||cninfo.com|
||controller|principal|lease|price|||transferen|2014||
|ent Co.,|||||||||.cn|
|||business|||||ce|||
|Ltd.||||||||||
|Shenzhen||||||||||
|||Revenue|||||Bank|||
|CATIC City|||||||||http://www.|
||Common|from|Property|Negotiated|||account|March 1,||
|Developm|||||1.12|0.03%|||cninfo.com|
||controller|principal|lease|price|||transferen|2014||
|ent Co.,|||||||||.cn|
|||business|||||ce|||
|Ltd.||||||||||
|Shenzhen||||||||||
|CATIC||||||||||
|Guanlan||Revenue|||||Bank|||
||||||||||http://www.|
|Real|Common|from|Property|Negotiated|||account|March 1,||
||||||4.46|0.10%|||cninfo.com|
|Estate|controller|principal|lease|price|||transferen|2014||
||||||||||.cn|
|Developm||business|||||ce|||
|ent Co.,||||||||||
|Ltd.||||||||||
|Shenzhen||||||||||
|CATIC||||||||||
|||Revenue|||||Bank|||
|Changtai|||||||||http://www.|
||Common|from|Property|Negotiated|||account|March 1,||
|Investment|||||64.28|1.50%|||cninfo.com|
||controller|principal|lease|price|||transferen|2014||
|Developm|||||||||.cn|
|||business|||||ce|||
|ent Co.,||||||||||
|Ltd.||||||||||
|Xi’an||Revenue|||||Bank|||
||||||||||http://www.|
|Tianyue|Common|from|Property|Negotiated|||account|March 1,||
||||||270.83|6.32%|||cninfo.com|
|Hotel Co.,|controller|principal|lease|price|||transferen|2014||
||||||||||.cn|
|Ltd.||business|||||ce|||
|||Revenue|||||Bank|||
|Rainbow|||||||||http://www.|
||Common|from|Property|Negotiated|||account|March 1,||
|Supermark|||||22.43|0.52%|||cninfo.com|
||controller|principal|lease|price|||transferen|2014||
|et|||||||||.cn|
|||business|||||ce|||
|Shenzhen||Revenue|||||Bank|||
||||||||||http://www.|
|CATIC City|Common|from|Property|Negotiated|||account|March 1,||
||||||4.5|0.11%|||cninfo.com|
|Investment|controller|principal|lease|price|||transferen|2014||
||||||||||.cn|
|Co., Ltd.||business|||||ce|||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Shenzhen||||||||||||
|CATIC||||||||||||
|||Revenue||||||Bank||||
|Jiufang|||||||||||http://www.|
||Common|from|Property|Negotiated||||account||March 1,||
|Assets||||||18.18|0.42%||||cninfo.com|
||controller|principal|lease|price||||transferen||2014||
|Managem|||||||||||.cn|
|||business||||||ce||||
|ent Co.,||||||||||||
|Ltd.||||||||||||
|Shenzhen||||||||||||
|CATIC||Revenue||||||Bank||||
||||||||||||http://www.|
|Theme|Common|from|Property|Negotiated||||account||March 1,||
|||||||47.28|1.10%||||cninfo.com|
|Real|controller|principal|lease|price||||transferen||2014||
||||||||||||.cn|
|Estate Co.,||business||||||ce||||
|Ltd.||||||||||||
|China||||||||||||
|National||||||||||||
|||Revenue||||||Bank||||
|Aero-Tech|||||||||||http://www.|
||Actual|from|Property|Negotiated||||account||March 1,||
|nology||||||21.03|0.49%||||cninfo.com|
||controller|principal|lease|price||||transferen||2014||
|Corporatio|||||||||||.cn|
|||business||||||ce||||
|n||||||||||||
|Shenzhen||||||||||||
|Ganzhou||||||||||||
|CATIC||||||||||||
|||||||||Bank||||
|Real|||||||||||http://www.|
||Common|Sales|Property|Negotiated||||account||March 1,||
|Estate||||||50.18|1.22%||||cninfo.com|
||controller|costs|lease|price||||transferen||2014||
|Developm|||||||||||.cn|
|||||||||ce||||
|ent Co.,||||||||||||
|Ltd.||||||||||||
|Chengdu||||||||||||
|CATIC||||||||||||
|||||||||Bank||||
|Real|||||||||||http://www.|
||Common|Sales|Property|Negotiated||||account||March 1,||
|Estate||||||40.5|0.99%||||cninfo.com|
||controller|costs|lease|price||||transferen||2014||
|Developm|||||||||||.cn|
|||||||||ce||||
|ent Co.,||||||||||||
|Ltd.||||||||||||
|Total||||--|--|6,589.19|--|--|--|--|--|
|Details of large amount of sales returns||||Inapplicable||||||||
|Actual implementation of the routine related||||||||||||
|transactions incurred during the reporting||||||||||||
|||||Inapplicable||||||||
|period whose total amount had been predicted||||||||||||
|based on the categories (if any)||||||||||||
|Cause of bigger difference between the bargain||||||||||||
|||||Inapplicable||||||||
|price and the market reference price (if any)||||||||||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report 2. Related transactions concerning assets acquisition/sales
Inapplicable
3. Related Transitions of Joint Investments
Inapplicable
4. Current Associated Rights of Credit and Liabilities
Inapplicable
Did there exist any non-operational related rights of credit and liabilities
√ Yes□ No
|||||||||
|-|-|-|-|-|-|-|-|
|||||Does there||||
|||||||Amount||
|||Types of||exist|Opening|||
||||Causes of|||incurred in the|Ending balance|
|Related parties|Relationship|creditor’s right||non-operation|balance (in|||
||||formation|||reporting period|(in CNY10,000)|
|||and liabilities||oriented fund|CNY10,000)|||
|||||||(in CNY10,000)||
|||||occupancy?||||
|||Amount due||||||
||Common||Trade|||||
|Rainbow Supermarket||from the related||No|215.41|193.11|408.52|
||controller||receivables|||||
|||party||||||
|||Amount due||||||
||Eventual||Trade|||||
|AVIC||from the related||No|64.41|-1.33|63.08|
||controller||receivables|||||
|||party||||||
|||Amount due||||||
||Common||Trade|||||
|Shennan Circuit Co., Ltd.||from the related||No|1,788.43|62.14|1,850.57|
||controller||receivables|||||
|||party||||||
|CATIC Electronic||Amount due||||||
||Common||Trade|||||
|Measuring Instruments||from the related||No|29.74|-26.32|3.42|
||controller||receivables|||||
|Co., Ltd||party||||||
|||Amount due||||||
||Common||Shopping mall|||||
|Rainbow Supermarket||from the related||No|16.79|0.85|17.64|
||controller||deposit|||||
|||party||||||
|||Amount due||||||
|Xi’an Tianyue Hotel Co.,|Common|||||||
|||from the related|Rental|No|175|25|200|
|Ltd.|controller|||||||
|||party||||||
|Shenzhen CATIC||Amount due||||||
||Common|||||||
|Enterprise Group||from the related|Training fees|No|1.14|13.86|15|
||controller|||||||
|Training Center||party||||||
|Chengdu CATIC Real||Amount due||||||
||Common|||||||
|Estate Development Co.,||from the related|Rental deposit|No|11.56|-1.51|10.05|
||controller|||||||
|Ltd.||party||||||
|Ganzhou CATIC Real|Common|Amount due|Rental deposit|No|12.27|0|12.27|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|Estate Development Co.,|controller|from the related||||||
|Ltd.||party||||||
|||Amount due||||||
||Common|||||||
|CATIC Property||from the related|Rental|No|0.67|-0.67|0|
||controller|||||||
|||party||||||
|CATIC Electronic||Amount due to||||||
||Common|||||||
|Measuring Instruments||the related|Trade payables|No|4.55|-4.55|0|
||controller|||||||
|Co., Ltd||party||||||
|||Amount due to||||||
||Eventual|||||||
|AVIC||the related|Trade payables|No|1.55|-1.55|0|
||controller|||||||
|||party||||||
|Shenzhen CATIC||Amount due to||||||
||Common|||||||
|Building Technology Co.,||the related|Rental deposit|No|0.82|0|0.82|
||controller|||||||
|Ltd.||party||||||
|Shenzhen CATIC||Amount due to||||||
||Common|||||||
|Nanguang Elevator||the related|Rental deposit|No|0.34|0|0.34|
||controller|||||||
|Engineering Co., Ltd.||party||||||
|||Amount due to||||||
|Shenzhen CATIC City|Common|||||||
|||the related|Rental deposit|No|3.77|0|3.77|
|Investment Co., Ltd.|controller|||||||
|||party||||||
|||Amount due to||||||
|CATIC Securities, Co.,|Common|||||||
|||the related|Rental deposit|No|17.89|0|17.89|
|Ltd.|controller|||||||
|||party||||||
|||Amount due to||||||
||Common|||||||
|CATIC Real Estate||the related|Rental deposit|No|42.48|0|42.48|
||controller|||||||
|||party||||||
|Shenzhen CATIC||Amount due to||||||
||Common|||||||
|Changtai Investment||the related|Rental deposit|No|22.17|0|22.17|
||controller|||||||
|Development Co., Ltd.||party||||||
|||Amount due to||||||
||Common|||||||
|Rainbow Supermarket||the related|Rental deposit|No|6|0|6|
||controller|||||||
|||party||||||
|Shenzhen CATIC Jiufang||Amount due to||||||
||Common|||||||
|Assets Management Co.,||the related|Rental deposit|No|6.06|0|6.06|
||controller|||||||
|Ltd.||party||||||
|Chengdu CATIC Real||Amount due to||||||
||Common|||||||
|Estate Development Co.,||the related|Rental deposit|No|0.44|-0.44|0|
||controller|||||||
|Ltd.||party||||||
|||Amount due to||||||
|AVIC International|Controlling|||||||
|||the related|Borrowing|No|0|15,000|15,000|
|Holdings Limited|shareholder|||||||
|||party||||||
|Influence of the related rights of credit and||||||||
|liabilities upon the Company’s operation||Inapplicable||||||
|results and financial position.||||||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report 5. Other Material Related Transactions
The 10th meeting of the Seventh Board of Directors held on May 23, 2014 reviewed and approved the Proposal on Application to the Controlling Shareholder for Loan. For the detail, refer to the Announcement on the Resolution of the 10th Meeting of the Seventh Board of Directors (2014-016) and the Announcement on the Related Transaction of Application to the Controlling Shareholder for Loan (2014-o17).
Relevant inquiry with the Internet website for disclosing provisional report on material related
transactions
||||
|-|-|-|
|||Description of the website for|
|Description of provisional|Date of disclosing||
|||disclosing provisional|
|announcement|provisional announcement||
|||announcements|
|Announcement on the RelatedTransaction of Application to theControlling Shareholder for Loan(2014-o17).|||
||May 23, 2014|www.cninfo.com.cn|

VIII. TheCompany’s fund occupied by its controlling shareholder or related party for non-operation purpose
Inapplicable
IX. Important Contracts and Implementation
1. Custody, Contacting and Leases
(1) Custody
Inapplicable
(2) Contracts
Inapplicable
(3) Leases
Inapplicable
2. Guarantees
In CNY 10,000
||||||||||
|-|-|-|-|-|-|-|-|-|
|Outward guarantees (excluding guarantee to the subsidiaries)|||||||||
|Names of Gurantees|Date of the|Guarantee|Date of|Actual amount of|Type of|Guarantee|Implement|Guarantee|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
||announceme|line|occurrence (date|guarantee|guarantee|period|ation|to related|
||nt on the||of agreement||||status|party?|
||guarantee||execution)|||||(Y/N)|
||line||||||||
|Inapplicable|||||||||
|||||Total amount of outward|||||
|Total amount of outward guarantee|||||||||
|||0||guarantee actually incurred in the||0|||
|approved in the report period (A1)|||||||||
|||||report period (A2)|||||
|Total amount of outward guarantee||||Total ending balance of outward|||||
|already approved at the end of the||0||guarantee at the end of the report||0|||
|report period (A3)||||period (A4)|||||
|Guarantees to the Subsidiaries|||||||||
||Date of the||||||||
||||Date of|||||Guarantee|
||announceme||||||Implement||
|||Guarantee|occurrence (date|Actual amount of|Type of|Guarantee||to related|
|Names of Guarantees|nt on the||||||ation||
|||line|of agreement|guarantee|guarantee|period||party?|
||guarantee||||||status||
||||execution)|||||(Y/N)|
||line||||||||
|Shenzhen Harmony|||||Guarantee with||||
||February 27,||December 30,||||||
|World Watches Center||10,000||10,000|joint|1 year|No|No|
||2013||2013||||||
|Co., Ltd.|||||responsibility||||
|Shenzhen Harmony|||||Guarantee with||||
||February 27,||February 25,||||||
|World Watches Center||6,000||6,000|joint|1 year|No|No|
||2013||2014||||||
|Co., Ltd.|||||responsibility||||
|Shenzhen Harmony|||||Guarantee with||||
||February 27,||||||||
|World Watches Center||5,000|July 18, 2013|5,000|joint|1 year|No|No|
||2013||||||||
|Co., Ltd.|||||responsibility||||
|Shenzhen Harmony|||||Guarantee with||||
||March 1,||||||||
|World Watches Center||5,000|June 13, 2014|5,000|joint|6 months|No|No|
||2014||||||||
|Co., Ltd.|||||responsibility||||
|Shenzhen Harmony|||||Guarantee with||||
||February 27,||February 27,||||||
|World Watches Center||2,000||2,000|joint|1 year|No|No|
||2013||2014||||||
|Co., Ltd.|||||responsibility||||
|Shenzhen Harmony|||||Guarantee with||||
||March 1,||||||||
|World Watches Center||3,000|March 6, 2014|3,000|joint|6 months|No|No|
||2014||||||||
|Co., Ltd.|||||responsibility||||
|Shenzhen Harmony|||||Guarantee with||||
||March 1,||||||||
|World Watches Center||5,000|May 9, 2014|3,000|joint|1 year|No|No|
||2014||||||||
|Co., Ltd.|||||responsibility||||
|Shenzhen Harmony|||||Guarantee with||||
||March 1,||||||||
|World Watches Center||4,000|May 27, 2014|2,700|joint|1 year|No|No|
||2014||||||||
|Co., Ltd.|||||responsibility||||
||||||Guarantee with||||
|FIYTA (Hong Kong)|February 27,||||||||
|||3,969.5|July 11, 2013|3,969.5|joint|3 years|No|No|
|Limited|2013||||||||
||||||responsibility||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Guarantee with||||
|FIYTA (Hong Kong)|February 27,||||||||
|||3,969.5|August 5, 2013|3,969.5|joint|3 years|No|No|
|Limited|2013||||||||
||||||responsibility||||
||||||Guarantee with||||
|FIYTA (Hong Kong)|February 27,||||||||
|||1,587.8|January 6, 2014|1,587.8|joint|3 years|No|No|
|Limited|2013||||||||
||||||responsibility||||
||||||Guarantee with||||
|FIYTA (Hong Kong)|February 27,||||||||
|||793.9|January 27, 2014|793.9|joint|3 years|No|No|
|Limited|2013||||||||
||||||responsibility||||
||||||Guarantee with||||
|FIYTA (Hong Kong)|March 1,||||||||
|||1,587.8|March 3, 2014|1,587.8|joint|3 years|No|No|
|Limited|2014||||||||
||||||responsibility||||
||||||Guarantee with||||
|FIYTA (Hong Kong)|February 23,||November 9,||||||
|||2,381.7||2,381.7|joint|2 years|No|No|
|Limited|2012||2012||||||
||||||responsibility||||
||||||Guarantee with||||
|FIYTA (Hong Kong)|February 23,||||||||
|||1,587.8|October 5, 2012|1,587.8|joint|2 years|No|No|
|Limited|2012||||||||
||||||responsibility||||
|Total guarantee quota to the|||||||||
|||||Total amount of guarantee to the|||||
|subsidiaries approved in the reporting|||||||||
|||100,000||subsidiaries actually incurred in||25,669.5|||
|period (B1)|||||||||
|||||the reporting period (B2)|||||
|Total guarantee quota to the||||Total balance of actual guarantee|||||
|subsidiaries approved at the end of||100,000||to the subsidiaries at the end of||52,578|||
|the reporting period (B3)||||the reporting period (B4)|||||
|The Company’s total guarantee (i.e. total of the first two main items)|||||||||
|||||Total amount of guarantee|||||
|Total guarantee quota approved in|||||||||
|||100,000||actually incurred in the reporting||25,669.5|||
|the reporting period (A1+B1)|||||||||
|||||period (A2+B2)|||||
|Total guarantee quota already||||Total balance of the actual|||||
|approved at the end of the reporting||100,000||guarantee at the end of the||52,578|||
|period (A3+B3)||||reporting period (A4+B4)|||||
|Proportion of the actual guarantees in the Company’s net assets|||||||||
|||||33.12%|||||
|(namely A4+B4)|||||||||
|Including:|||||||||
|Description of the possibility of bearing joint repayment liability due to|||||||||
|||||Inapplicable|||||
|undue guarantee|||||||||
|Description of external guarantee against the specified procedures||||Inapplicable|||||

Description of the guarantee with complex method
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report (1) Outward guarantee against the regulations
Inapplicable
3. Other Important Contracts
Inapplicable
4. Other Important Transactions
Inapplicable
X. The commitments of the Company and its shareholders holding over5% of theCompany’s total shares in the report year or extending to the report year from previous year(s).
Inapplicable
XI. Engagement/Disengagement of CPAs
Has the Semi-annual Financial Report been audited
□ Yes√ No
XII. Punishment and Rectification
Inapplicable
XIII. Disclosure of the Delisting Risk due to Breach of Law/Regulations
Inapplicable
XIV. Notes to Other Significant Events
Inapplicable
Section 6 Change of Shares and Particulars about Shareholders I. Change of Shares
In Shares
||||
|-|-|-|
|Before the change|Increase / Decrease (+/ -)|After the change|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||Shares|||||
|||Proportion|New|Bonus|converted||||Proportion|
||Quantity|||||Others|Sub-total|Quantity||
|||(%)|issuing|shares|from||||(%)|
||||||reserve|||||
|I. Restricted shares|49,733|0.01%|0|0|0|0|0|49,733|0.01%|
|1. Shares held by the state|0|0.00%|0|0|0|0|0|0|0.00%|
|2、State corporate shares|0|0.00%|0|0|0|0|0|0|0.00%|
|3. Other domestic shares|49,733|0.01%|0|0|0|0|0|49,733|0.01%|
|Including: Domestic corporate||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|shares||||||||||
|Shares held by domestic||||||||||
||49,733|0.01%|0|0|0|0|0|49,733|0.01%|
|natural persons||||||||||
|4、Foreign invested shares|0|0.00%|0|0|0|0|0|0|0.00%|
|Including: Foreign corporate||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|shares||||||||||
|Shares held by foreign||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|natural persons||||||||||
||392,718,13|||||||392,718,13||
|II. Unrestricted shares||99.99%|0|0|0|0|0||99.99%|
||7|||||||7||
||311,070,13|||||||311,070,13||
|1. CNY ordinary shares||79.20%|0|0|0|0|0||79.20%|
||7|||||||7||
|2. Foreign invested shares||||||||||
||81,648,000|20.79%|0|0|0|0|0|81,648,000|20.79%|
|listed in Mainland China||||||||||
|3、Foreign invested shares||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|listed abroad||||||||||
|4. Others|0|0.00%|0|0|0|0|0|0|0.00%|
||392,767,87|||||||392,767,87||
|III. Total shares||100.00%|0|0|0|0|0||100.00%|
||0|||||||0||

Cause of the change of shares
Inapplicable
Approval for the change of shares
Inapplicable
Transfer of the change of shares
Inapplicable
Influence from the share movements upon such financial indicators as earnings per share, diluted earnings per share, net asset per share of the shareholders attributable to theCompany’s ordinary shares in the lastest year and the latest accounting period.
Inapplicable
Other information as the Company considers necessary to be disclosed or demanded by the securities
FIYTA Holdings Ltd. 2014 Semi-Annual Report regulatory authority for disclosing
Inapplicable
Explanation to the change of thecompany’s total shares and the strucutre and the change of thecompany’s asset and liability structure arising therefrom
Inapplicable
II. Number of Shareholders and Shareholding
In shares
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||Total shareholders of preferredshares (if any) whose voting powerhas been recovered in thereporting period (refer to Note 8)||||||
|Total shareholders of ordinary|||||||||||
|shares at the end of the reporting||27,068|||||||0||
|period|||||||||||
|Shares held by the shareholder holding over 5% of the total shares or the top 10 shareholders|||||||||||
|||||||||Number|Pledging or freezing||
|||||Quantity at the||Increase/|Number||||
|||||||||of the|||
|||||end of the||decrease|of the||||
|Shareholder’s|||Shareholding|||||non-restr|||
||Nature|||reporting||in the|restricted||Status of the||
|Name|||proportion (%)|||||icted||Quantity|
|||||period||reporting|shares||shares||
|||||||||shares|||
|||||||period|held||||
|||||||||held|||
|AVIC InternationalHoldings Limited|State corporateshareholder||41.49%|162,977,327||0|0|162,977,327|||
|China MerchantsSecurities (HK)Co., Ltd.|Overseas corporate||1.52%|5,973,620||-1,256,530|0|5,973,620|||
|China EverbrightBank Limited byShare Ltd - UBSInvestmentSecuritiesInvestment FundIndustry Boom|Domestic non-statecorporate shareholder||1.17%|4,600,496||4,600,496|0|4,600,496|||
|Hua An Fund –Minsheng Bank –TianshouInvestmentPortfolio No. 1Asset ManagementPlan|Domestic non-statecorporate shareholder||0.96%|3,756,047||400,000|0|3,756,047|||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|Bank ofCommunications -FactoringSecuritiesInvestment FundIndustry Boom|Domestic non-statecorporate shareholder|0.92%|3,599,888|3,599,888|0|3,599,888|||
|GOLDEN CHINAPLUS MASTERFUND|Overseas corporate|0.87%|3,418,284|-|0|3,418,284|||
|EssenceInternationalSecurities (HongKong) Limited|Overseas corporate|0.79%|3,103,200|-1,030,085|0|3,103,200|||
|GREENWOODSCHINA ALPHAMASTER FUND|Overseas corporate|0.68%|2,666,297|2,442,707|0|2,666,297|||
|Dai Wen|Domestic naturalperson|0.52%|2,053,268|814,168|0|2,053,268|||
|ZhongrongInternational TrustCo., Ltd. –Zhongrong GoldenTouch No. 11SecuritiesInvestmentPortfolio Fund TrustProgram|Domestic non-statecorporate shareholder|0.51%|2,000,000|-2,337,900|0|2,000,000|||
|About the fact that a strategic investor or|||||||||
|ordinary corporate became one of the top|||||||||
|||Inapplicable|||||||
|ten shareholders due to placement of new|||||||||
|shares (if any) (Refer to Note 3)|||||||||
|Explanation on associated relationship or||The Company has found neither affiliation among the aforesaid shareholders nor concerted actor as|||||||
|consistent action of the above||specified in the Measures for Administration of Information on the Shareholder Equity Change of|||||||
|shareholders||Listed Companies.|||||||
|Shareholding of top 10 shareholders of unrestricted shares|||||||||
|||Number of unrestricted shares held at the end of the|||||Share type||
|Shareholder’s Name|||||||||
|||reporting period|||||Share type|Quantity|
|AVIC International Holdings Limited||162,977,327|||||A-shares|162,977,327|
|China Merchants Securities (HK) Co., Ltd.||5,973,620|||||B-shares|5,973,620|
|China Everbright Bank Limited by ShareLtd - UBS Investment SecuritiesInvestment Fund Industry Boom||4,600,496|||||||
||||||||A-shares|4,600,496|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||
|-|-|-|-|
|Hua An Fund – Minsheng Bank –Tianshou Investment Portfolio No. 1 AssetManagement Plan|3,756,047|||
|||A-shares|3,756,047|
|Bank of Communications - FactoringSecurities Investment Fund Industry Boom|3,599,888|||
|||A-shares|3,599,888|
|GOLDEN CHINA PLUS MASTER FUND|3,418,284|B-shares|3,418,284|
|Essence International Securities (HongKong) Limited|3,103,200|||
|||B-shares|3,103,200|
|GREENWOODS CHINA ALPHA MASTERFUND|2,666,297|||
|||B-shares|2,666,297|
|Dai Wen|2,053,268|A-shares|2,053,268|
|Zhongrong International Trust Co., Ltd. –Zhongrong Golden Touch No. 11 SecuritiesInvestment Portfolio Fund Trust Program|2,000,000|||
|||A-shares|2,000,000|
|Explanation to the associated relationship||||
|or consistent action among the top 10||||
||The Company has found neither affiliation among the aforesaid shareholders nor concerted actor as|||
|shareholders of non-restricted negotiable||||
||specified in the Measures for Administration of Information on the Shareholder Equity Change of|||
|shares and that between the top 10||||
||Listed Companies.|||
|shareholders of non-restricted negotiable||||
|shares and top 10 shareholders.||||
|Note to the top 10 shareholders involved in||||
||Inapplicable|||
|margin financing & securities lending (if||||
|any) (Refer to Note 4)||||

Did the shareholders conduct agreed repurchase securities trading in the reporting period?
No
III. Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the reporting period
Inapplicable
Change of the actual controller in the reporting period
Inapplicable
IV. Share Acquisition Plan Proposed or Implemented by theCompany’s Shareholder and its Concerted Actor in the Reporting Period
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report Section 7 About Preferred Shares
I. Issuing and Listing of Preferred Shares in the Reporting Period
Inapplicable
II. Number of Shareholders of Preferred Shares and the Shareholding
Inapplicable
III. Repurchase or Conversion of Preferred Shares
1. Repurchase of Preferred Shares
Inapplicable
2. Conversion of Preferred Shares
Inapplicable
IV. Recovery and Implementation of the Voting Power of Preferred Shares
Inapplicable
V. Accounting Policy Adopted for Preferred Shares and the Cause
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report Section 8 Directors, Supervisors and Senior Executives I. Change in Shares Held by Directors, Supervisors and Senior Executives
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||Number of|||
|||||||||Number of||
||||Number of||||restricted|||
|||||Number of|Number of|Number of||restricted||
||||shares held||||shares|||
|||||shares|shares|shares held||shares||
||||at the||||granted at||Number of restricted|
|||||acquired|lessened|at the end||granted||
|||Office|beginning of||||the||shares granted at the|
|Names|Positions|||during the|during the|of the||during the||
|||Status|the||||beginning of||end of the reporting|
|||||reporting|reporting|reporting||reporting||
||||reporting||||the||period (share)|
|||||period|period|period||period||
||||period||||reporting|||
|||||(share)|(share)|(share)||(share)||
||||(share)||||period|||
||||||||(share)|||
|Lai||||||||||
||Chairman|Current||||||||
|Weixuan||||||||||
|Xu|Managing|||||||||
|||Current||||||||
|Dongsheng|director|||||||||
|Wang||||||||||
||Director|Current||||||||
|Mingchuan||||||||||
|Huang||||||||||
||Director|Current||||||||
|Yongfeng||||||||||
|Liu Aiyi|Director|Current||||||||
|Zhong Sijun|Director|Current||||||||
|Zhang|Independen|||||||||
|||Current||||||||
|Hongguang|t director|||||||||
|Zhang|Independen|||||||||
|||Current||||||||
|Shunwen|t director|||||||||
||Independen|||||||||
|Wang Yan||Current||||||||
||t director|||||||||
||Chairman of|||||||||
||the|||||||||
|Sui Yong||Current||||||||
||Supervisory|||||||||
||Committee|||||||||
|Tang Boxue|Supervisor|Current||||||||
|Chen Zhuo|Supervisor|Current||||||||
||Deputy GM|||||||||
||&|||||||||
|Chen Libin||Current||||||||
||Secrectary|||||||||
||of the Board|||||||||
|Lu||||||||||
||Deputy GM|Current|66,311|0|0|66,311|0|0|0|
|Bingqiang||||||||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Du Xi|Deputy GM|Current||||||||
|Lu Wanjun|Deputy GM|Current||||||||
||Chief|||||||||
|Hu Xinglong||Current||||||||
||accountant|||||||||
|Total|--|--|66,311|0|0|66,311|0|0|0|

 II. Personnel Change of Directors, Supervisors and Supervisors
||||||
|-|-|-|-|-|
|Names|Office Held|Type|Date|Cause|
|||||Applied for resigning the title of the Company’s director for the|
|Wang Xiaohua|Director|Retired|February 27, 2014||
|||||cause of job.|
|||||In accordance with the relevant provisions of the PRC|
|||||Company Law, the Corporate Governance Standards for Listed|
|||||Companies, etc. and the Articles of Association of the|
|Liu Aiyi|Director|Elected|June 10, 2014||
|||||Company, reviewed and approved at 2013 Annual General|
|||||Meeting, Mrl Liu Aiyi was elected a director of the Seventh|
|||||Board of Directors|
|||||In accordance with the relevant provisions of the PRC|
|||||Company Law, the Corporate Governance Standards for Listed|
|||||Companies, etc. and the Articles of Association of the|
|Zhong Sijun|Director|Elected|June 10, 2014||
|||||Company, reviewed and approved at 2013 Annual General|
|||||Meeting, Mr. Zhong Sijun was elected a director of the Seventh|
|||||Board of Directors|
|||||In accordance with the relevant provisions of the PRC|
|||||Company Law, the Corporate Governance Standards for Listed|
|||||Companies, etc. and the Articles of Association of the|
|Du Xi|Deputy GM|Appointed|August 8, 2014||
|||||Company, reviewed and approved at 2013 Annual General|
|||||Meeting, Mr. Du Xi was elected Deputy General Manager of the|
|||||Company|
|||||In accordance with the relevant provisions of the PRC|
|||||Company Law, the Corporate Governance Standards for Listed|
|||||Companies, etc. and the Articles of Association of the|
|Lu Wanjun|Deputy GM|Appointed|August 8, 2014||
|||||Company, reviewed and approved at 2013 Annual General|
|||||Meeting, Mr. Lu Wanjun was elected Deputy General Manager|
|||||of the Company|
|||||In accordance with the relevant provisions of the PRC|
|||||Company Law, the Corporate Governance Standards for Listed|
|||||Companies, etc. and the Articles of Association of the|
|Hu Xinglong|Chief accountant|Appointed|August 8, 2014||
|||||Company, reviewed and approved at 2013 Annual General|
|||||Meeting, Mr. Hu Xinglong was elected Chief Accountant of the|
|||||Company|
||Deputy GM &|||Applied for resigning Deputy GM & Chief accountant due to job|
|Li Dehua||Dismissed|August 8, 2014||
||Chief accountant|||transfer|
|Li Bei|Deputy GM|Dismissed|August 8, 2014|Applied for resigning Deputy GM of the Company due to the|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||||
|-|-|-|-|-|
|||||age|
|||||Applied for resigning Deputy GM of the Company due to the|
|Fang Juan|Deputy GM|Dismissed|August 8, 2014||
|||||age|

FIYTA Holdings Ltd. 2014 Semi-Annual Report Section 9 Financial Report
I.Auditors’ Report
Has the semi-annual report been audited
No
The semi-annual financial report has not been audited.
II. Financial Statements
The currency applied in the financial notes and statements is China Yuan (CNY).
1. Consolidated Balance Sheet
Prepared by FIYTA Holdings Ltd.
In CNY
||||
|-|-|-|
|Items|Ending balance|Opening balance|
|Current assets:|||
|Monetary fund|159,843,756.99|107,663,110.74|
|Settlement Reserve|||
|Inter-bank lending|||
|Trading financial assets|||
|Notes receivable|18,942,659.00|7,100,000.00|
|Accounts receivable|429,298,599.75|324,457,339.19|
|Prepayments|30,242,553.26|43,487,613.07|
|Insurance premium|||
|receivable|||
|Reinsurance accounts|||
|receivable|||
|Accounts receivable|||
|reinsurance reserve|||
|Interest receivable|||
|Dividends receivable|||
|Other receivables|48,674,506.86|40,436,640.10|
|Buying and selling back|||
|financial assets|||
|Inventories|2,082,397,057.72|2,123,342,820.93|
|Non-current assets due|||
|within a year|||
|Other current assets|9,297,764.83|30,811,991.07|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|Total current assets|2,778,696,898.41|2,677,299,515.10|
|Non-Current Assets:|||
|Disbursement of|||
|entrusted loans and advances|||
|Available-for-sale|||
|financial assets|||
|Held –to-maturity|||
|investment|||
|Long-term accounts|||
|receivable|||
|Long-term equity|||
||42,818,376.91|43,322,940.12|
|investment|||
|Investment based real|||
||230,663,811.82|235,235,684.76|
|estate|||
|Fixed assets|318,971,712.52|306,888,964.31|
|Construction-in-process|20,154,445.12|6,608,187.55|
|Engineering supplies|||
|Disposal of fixed assets|||
|Productive biological|||
|assets|||
|Oil and gas asset|||
|Intangible assets|35,842,463.18|36,168,611.72|
|Development expenses|||
|Goodwill|||
|Long-term expenses to|||
||148,035,738.29|146,542,685.58|
|be apportioned|||
|Deferred income tax|||
||82,867,259.34|74,159,134.29|
|asset|||
|Other non-current assets|31,500,000.00|32,476,867.85|
|Total non-current assets|910,853,807.18|881,403,076.18|
|Total assets|3,689,550,705.59|3,558,702,591.28|
|Current liabilities:|||
|Short-term borrowing|880,000,000.00|1,023,000,000.00|
|Borrowings from central|||
|bank|||
|Receipt of deposits and|||
|deposits from other banks|||
|Loans from other banks|||
|Trading financial liabilities|||
|Notes payable|||
|Accounts payable|194,912,347.73|222,347,620.47|
|Advance receipts|16,871,862.79|9,667,278.30|
|Funds from selling out|||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|and repurchasing financial|||
|assets|||
|Service charge and|||
|commission payable|||
|Salaries payable to the|||
||17,350,357.36|31,173,812.15|
|employees|||
|Taxes payable|77,458,797.66|57,628,175.26|
|Interest payable|9,207,600.91|19,422,859.82|
|Dividends payable|39,276,787.00||
|Other payables|191,384,823.80|38,454,934.30|
|Reinsurance payable|||
|Insurance contract|||
|reserve|||
|Funds from securities|||
|trading agency|||
|Funds from underwriting|||
|securities agency|||
|Non-current liabilities due|||
||39,695,000.00|39,310,000.00|
|within a year|||
|Other current liabilities|14,807,907.72|4,924,394.22|
|Total current liabilities|1,480,965,484.97|1,445,929,074.52|
|Non-Current Liabilities:|||
|Long term borrowings|218,121,283.35|173,274,950.01|
|Bonds payable|398,244,033.76|397,728,975.00|
|Long term accounts|||
|payable|||
|Special accounts payable|||
|Predicted liabilities|||
|Deferred income tax|||
|liability|||
|Other non-current|||
||3,430,000.00|2,950,000.00|
|liabilities|||
|Total non-current liabilities|619,795,317.11|573,953,925.01|
|Total liabilities|2,100,760,802.08|2,019,882,999.53|
|Owners’ equity (or|||
|shareholders’ equity):|||
|Paid up capital (or capital|||
||392,767,870.00|392,767,870.00|
|stock)|||
|Capital reserve|525,506,952.78|525,506,952.78|
|Less: shares in stock|||
|Special reserve|||
|Surplus reserve|156,714,094.20|156,714,094.20|
|Generic risk reserve|||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|Retained earnings|518,713,686.77|469,706,600.67|
|Foreign Currency Capital|-6,004,641.42|-8,260,833.09|
|Total owner’s equity|||
|attributable to the parent|1,587,697,962.33|1,536,434,684.56|
|company|||
|Minority equity|1,091,941.18|2,384,907.19|
|Owners’ equity (or|||
||1,588,789,903.51|1,538,819,591.75|
|shareholders’ equity)|||
|Total liabilities and owners’|||
||3,689,550,705.59|3,558,702,591.28|
|equity (or shareholders’ equity)|||

Legal Representative: Lai Weixuan Chief Financial Officer: Hu Xinglong Manager of the Accounting Dept: Hu Xinglong
FIYTA Holdings Ltd. 2014 Semi-Annual Report 2. Balance Sheet, Parent Company
Prepared by FIYTA Holdings Ltd.
In CNY
||||
|-|-|-|
|Items|Ending balance|Opening balance|
|Current assets:|||
|Monetary fund|45,096,060.51|27,929,968.24|
|Trading financial assets|||
|Notes receivable|||
|Accounts receivable|219,193,039.81|239,193,039.81|
|Prepayments|282,000.00||
|Interest receivable|||
|Dividends receivable|98,601,444.91||
|Other receivables|1,275,388,416.75|1,337,631,334.01|
|Inventories|||
|Non-current assets due|||
|within a year|||
|Other current assets||308,119.88|
|Total current assets|1,638,560,961.98|1,605,062,461.94|
|Non-Current Assets:|||
|Available-for-sale|||
|financial assets|||
|Held –to-maturity|||
|investment|||
|Long-term accounts|||
|receivable|||
|Long-term equity|||
||773,618,096.91|775,522,660.12|
|investment|||
|Investment based real|||
||230,663,811.82|235,235,684.76|
|estate|||
|Fixed assets|119,185,181.82|108,094,045.84|
|Construction-in-process|20,154,445.12|6,608,187.55|
|Engineering supplies|||
|Disposal of fixed assets|||
|Productive biological|||
|assets|||
|Oil and gas asset|||
|Intangible assets|29,500,261.56|29,820,750.12|
|Development expenses|||
|Goodwill|||
|Long-term expenses to|4,865,607.53|5,679,969.47|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|be apportioned|||
|Deferred income tax|||
||775,806.46|775,806.46|
|asset|||
|Other non-current assets||10,976,867.85|
|Total non-current assets|1,178,763,211.22|1,172,713,972.17|
|Total assets|2,817,324,173.20|2,777,776,434.11|
|Current liabilities:|||
|Short-term borrowing|613,000,000.00|823,000,000.00|
|Trading financial liabilities|||
|Notes payable|||
|Accounts payable|1,423,712.81|1,273,442.81|
|Advance receipts|1,229,743.58|1,368,593.44|
|Salaries payable to the|||
||2,091,034.69|5,700,000.00|
|employees|||
|Taxes payable|4,364,873.50|2,909,411.40|
|Interest payable|8,791,135.16|18,444,077.78|
|Dividends payable|39,276,787.00||
|Other payables|164,909,466.28|15,261,230.72|
|Non-current liabilities due|||
|within a year|||
|Other current liabilities|||
|Total current liabilities|835,086,753.02|867,956,756.15|
|Non-Current Liabilities:|||
|Long term borrowings|91,861,928.00|87,361,928.00|
|Bonds payable|398,244,033.76|397,728,975.00|
|Long term accounts|||
|payable|||
|Special accounts payable|||
|Predicted liabilities|||
|Deferred income tax|||
|liability|||
|Other non-current|||
||3,430,000.00|2,950,000.00|
|liabilities|||
|Total non-current liabilities|493,535,961.76|488,040,903.00|
|Total liabilities|1,328,622,714.78|1,355,997,659.15|
|Owners’ equity (or|||
|shareholders’ equity):|||
|Paid up capital (or capital|||
||392,767,870.00|392,767,870.00|
|stock)|||
|Capital reserve|531,162,493.88|531,162,493.88|
|Less: shares in stock|||
|Special reserve|||
|Surplus reserve|156,714,094.20|156,714,094.20|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|Generic risk reserve|||
|Retained earnings|408,057,000.34|341,134,316.88|
|Foreign Currency Capital|||
|Owners’ equity (or|||
||1,488,701,458.42|1,421,778,774.96|
|shareholders’ equity)|||
|Total liabilities and owners’|||
||2,817,324,173.20|2,777,776,434.11|
|equity (or shareholders’ equity)|||

Legal Representative: Lai Weixuan Chief Financial Officer: Hu Xinglong Manager of the Accounting Dept: Hu Xinglong
FIYTA Holdings Ltd. 2014 Semi-Annual Report 3. Consolidated Profit Statement
Prepared by FIYTA Holdings Ltd.
In CNY
||||
|-|-|-|
|Items|Amount in the reporting period|Amount in the previous period|
|I. Gross Revenue|1,642,614,790.97|1,508,353,766.86|
|Including: revenue|1,642,614,790.97|1,508,353,766.86|
|Interest income|||
|Earned premium|||
|Service charge|||
|and commission income|||
|II. Total operating cost|1,539,792,741.34|1,426,809,547.89|
|Including: operating costs|1,038,060,709.77|970,869,666.64|
|Interest payment|||
|Service charge|||
|and commission payment|||
|Refunded|||
|premiums|||
|Compensation|||
|pay-out, net|||
|Net amount of|||
|reserves for reinsurance|||
|contract|||
|Policy dividend|||
|payment|||
|Reinsurance|||
|expenses|||
|Business taxes|||
||10,314,717.04|9,598,819.57|
|and surcharge|||
|Sales costs|349,761,320.39|315,335,871.86|
|Administrative|||
||84,852,192.39|78,223,983.74|
|expenses|||
|Financial|||
||54,196,678.49|47,823,408.80|
|expenses|||
|Loss from|||
||2,607,123.26|4,957,797.28|
|impairment of assets|||
|Plus: Income from|||
|change of fair value (loss is|||
|stated with “-“)|||
|Investment|||
||-504,563.21|108,440.73|
|income (loss is stated with “-“)|||
|Including: return|||
|on investment in associates|-504,563.21|108,440.73|
|and joint ventures|||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|Exchange income|||
|(loss expressed with “-“)|||
|III. Operating Profit (loss is|||
||102,317,486.42|81,652,659.70|
|stated with “-“)|||
|Plus: Non-operating|||
||3,189,982.57|1,561,438.20|
|income|||
|Less: Non-operating|||
||550,640.88|246,186.21|
|expenses|||
|Including: Loss|||
|from disposal of non-current|31,046.62|27,315.73|
|assets|||
|IV. Total profit (total loss is|||
||104,956,828.11|82,967,911.69|
|stated with “-“)|||
|Less: Income tax|||
||16,573,527.31|13,755,185.77|
|expense|||
|V. Net Profit (net loss is stated|||
||88,383,300.80|69,212,725.92|
|with “-“)|||
|Including: Net profit|||
|realized by the consolidatee|||
|realized before the|||
|consolidation|||
|Net profit attributable to|||
||88,283,873.10|69,097,419.87|
|the parent company’s owner|||
|Minority shareholders’|||
||99,427.70|115,306.05|
|gain/loss|||
|VI. Earnings per share:|--|--|
|(I) Basic earnings per|||
||0.225|0.176|
|share|||
|(II) Diluted earnings per|||
||0.225|0.176|
|share|||
|VII. Other comprehensive|||
||2,263,797.96|-3,563,383.18|
|income|||
|VIII. Total comprehensive|||
||90,647,098.76|65,649,342.74|
|income|||
|Total comprehensive|||
|income attributable to the|90,540,064.77|65,548,759.81|
|owner of the parent company|||
|Total comprehensive|||
|income attributable to minority|107,033.99|100,582.93|
|shareholders|||

Legal Representative: Lai Weixuan Chief Financial Officer: Hu Xinglong Manager of the
Accounting Dept: Hu Xinglong
FIYTA Holdings Ltd. 2014 Semi-Annual Report 4. Profit Statement, Parent Company
Prepared by FIYTA Holdings Ltd.
In CNY
||||
|-|-|-|
|Items|Amount in the reporting period|Amount in the previous period|
|I. Revenue|42,966,203.07|44,773,085.81|
|Less: Business costs|6,497,016.07|6,806,000.42|
|Business taxes and|||
||2,436,791.95|3,026,540.05|
|surcharge|||
|Sales costs|0.00|3,846,026.66|
|Administrative|||
||22,657,408.82|21,162,716.18|
|expenses|||
|Financial expenses|1,435,963.14|460,822.78|
|Loss from|||
||-4,394.68|210,607.55|
|impairment of assets|||
|Plus: Income from|||
|change of fair value (loss is|0.00|0.00|
|stated with “-“)|||
|Investment income|||
||98,096,881.70|75,079,918.87|
|(loss is stated with “-“)|||
|Including: return on|||
|investment in associates and|-504,563.21|108,440.73|
|joint ventures|||
|II. Operating Profit (loss is|||
||108,040,299.47|84,340,291.04|
|stated with “-“)|||
|Plus: Non-operating|||
||861,031.28|1,000,834.62|
|income|||
|Less: Non-operating|||
||150,000.00|180,000.00|
|expenses|||
|Including: Loss from|||
||0.00|0.00|
|disposal of non-current assets|||
|III. Total profit (total loss is|||
||108,751,330.75|85,161,125.66|
|stated with “-“)|||
|Less: Income tax|||
||2,551,860.29|2,397,616.45|
|expense|||
|IV. Net Profit (net loss is stated|||
||106,199,470.46|82,763,509.21|
|with “-“)|||
|V. Earnings per share|--|--|
|(I) Basic earnings per|||
||0.270|0.211|
|share|||
|(II) Diluted earnings per|0.270|0.211|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|share|||
|VI. Other comprehensive|||
||0.00|0.00|
|income|||
|VII. Total comprehensive|||
||106,199,470.46|82,763,509.21|
|income|||

Legal Representative: Lai Weixuan Chief Financial Officer: Hu Xinglong Manager of the Accounting Dept: Hu Xinglong
FIYTA Holdings Ltd. 2014 Semi-Annual Report 5. Consolidated Cash Flow Statement
Prepared by FIYTA Holdings Ltd.
In CNY
||||
|-|-|-|
|Items|Amount in the reporting period|Amount in the previous period|
|I. Net cash flows arising from|||
|operating activities:|||
|Cash received from sales|||
||1,780,633,526.09|1,653,001,232.85|
|of goods and supply of labor|||
|Net increase of|||
|customers’ deposit and due|||
|from banks|||
|Net increase of|||
|borrowings from the central|||
|bank|||
|Net increase of|||
|borrowings from other financial|||
|institutions|||
|Cash received from|||
|former insurance contract|||
|premium|||
|Net cash received from|||
|reinsurance business|||
|Net increase of insurance|||
|reserve and investment|||
|Net increase from|||
|disposal of transactional|||
|financial asset|||
|Cash received from|||
|interest, service charge and|||
|commission|||
|Net increase of|||
|borrowings|||
|Net increase of fund from|||
|repurchases|||
|Rebated taxes received|0.00|0.00|
|Other operation activity|||
||15,296,054.99|18,388,403.90|
|related cash receipts|||
|Subtotal of cash flow in from|||
||1,795,929,581.08|1,671,389,636.75|
|operating activity|||
|Cash paid for purchase of|1,177,579,276.03|1,104,945,928.41|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|goods and reception of labor|||
|services|||
|Net increase of loans and|||
|advances to customers|||
|Net increase of due from|||
|central bank and due from|||
|banks|||
|Cash paid for indemnity|||
|of original insurance contract|||
|Cash paid for interest,|||
|service charge and|||
|commission|||
|Cash paid for insurance|||
|policy dividend|||
|Cash paid to and for staff|223,473,612.75|197,357,609.04|
|Taxes paid|96,337,099.02|87,867,910.11|
|Other business related|||
||160,540,913.89|147,223,388.62|
|cash payments|||
|Subtotal of cash flow out from|||
||1,657,930,901.69|1,537,394,836.18|
|operating activity|||
|Net cash flow arising from|||
||137,998,679.39|133,994,800.57|
|operating activities|||
|II. Cash flows arising from|||
|investment activities:|||
|Cash received from|||
||0.00|0.00|
|recovery of investment|||
|Cash received from|||
||0.00|0.00|
|investment income|||
|Net amount of cash|||
|received from disposal of fixed|||
||1,581.04|681,262.51|
|assets, intangible assets and|||
|other long term assets|||
|Net cash received from|||
|disposal of subsidiaries and|0.00|0.00|
|other operating units|||
|Other investment related|||
||0.00|0.00|
|cash receipts|||
|Subtotal of cash flow in from|||
||1,581.04|681,262.51|
|investment activity|||
|Cash paid for|||
|construction/purchase of fixed|||
||77,189,659.42|58,489,580.79|
|assets, intangible assets and|||
|other long term assets|||
|Cash paid for investment|0.00|0.00|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|Net increase of|||
|hypothecated loans|||
|Net cash received from|||
|payment by subsidiaries and|0.00|0.00|
|other operating units|||
|Other investment related|||
||0.00|0.00|
|cash payments|||
|Subtotal of cash flow out from|||
||77,189,659.42|58,489,580.79|
|investment activity|||
|Net cash flow arising from|||
||-77,188,078.38|-57,808,318.28|
|investment activities|||
|III. Cash flows arising from|||
|fund raising activities:|||
|Cash received from|||
||0.00|0.00|
|absorption of investment|||
|Incl.: Cash received from|||
|subsidiaries’ absorption of|||
||0.00|0.00|
|minority shareholders’|||
|investment|||
|Cash received from|||
||841,502,500.00|510,892,441.63|
|borrowings|||
|Cash received from bond|||
|issuing|||
|Other fund-raising related|||
||0.00|0.00|
|cash receipts|||
|Subtotal of cash flow in from|||
||841,502,500.00|510,892,441.63|
|fund raising activity|||
|Cash paid for liabilities|||
||790,751,192.02|605,167,616.01|
|repayment|||
|Cash paid for|||
|dividend/profit distribution or|57,371,716.58|25,666,632.98|
|repayment of interest|||
|Including: Dividend and|||
|profit paid by subsidiaries to|0.00|0.00|
|minority shareholders|||
|Other fund-raising related|||
||2,295,383.00|502,986.00|
|cash payments|||
|Subtotal of cash flow out from|||
||850,418,291.60|631,337,234.99|
|fund raising activity|||
|Net cash flow arising from|||
||-8,915,791.60|-120,444,793.36|
|fund-raising activities|||
|IV. Influence from change of|||
|exchange rate upon cash and|285,836.84|-672,558.62|
|cash equivalents|||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|V. Net increase of cash and|||
||52,180,646.25|-44,930,869.69|
|cash equivalents|||
|Plus: Opening balance of|||
||107,663,110.74|140,420,994.71|
|cash and cash equivalents|||
|VI. Ending balance of cash and|||
||159,843,756.99|95,490,125.02|
|cash equivalents|||

Legal Representative: Lai Weixuan Chief Financial Officer: Hu Xinglong Manager of the Accounting Dept: Hu Xinglong
FIYTA Holdings Ltd. 2014 Semi-Annual Report 6. Cash Flow Statement, Parent Company
Prepared by FIYTA Holdings Ltd.
In CNY
||||
|-|-|-|
|Items|Amount in the reporting period|Amount in the previous period|
|I. Net cash flows arising from|||
|operating activities:|||
|Cash received from sales|||
||62,443,531.63|45,381,348.64|
|of goods and supply of labor|||
|Rebated taxes received|||
|Other operation activity|||
||107,338,821.67|113,856,708.91|
|related cash receipts|||
|Subtotal of cash flow in from|||
||169,782,353.30|159,238,057.55|
|operating activity|||
|Cash paid for purchase of|||
|goods and reception of labor|||
|services|||
|Cash paid to and for staff|24,629,959.54|21,485,348.55|
|Taxes paid|4,370,657.08|9,100,088.39|
|Other business related|||
||6,191,101.05|289,779,618.43|
|cash payments|||
|Subtotal of cash flow out from|||
||35,191,717.67|320,365,055.37|
|operating activity|||
|Net cash flow arising from|||
||134,590,635.63|-161,126,997.82|
|operating activities|||
|II. Cash flows arising from|||
|investment activities:|||
|Cash received from|||
||1,400,000.00||
|recovery of investment|||
|Cash received from|||
|investment income|||
|Net amount of cash|||
|received from disposal of fixed|||
|||672,000.00|
|assets, intangible assets and|||
|other long term assets|||
|Net cash received from|||
|disposal of subsidiaries and|||
|other operating units|||
|Other investment related|||
|cash receipts|||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|Subtotal of cash flow in from|||
||1,400,000.00|672,000.00|
|investment activity|||
|Cash paid for|||
|construction/purchase of fixed|||
||15,746,936.23|2,795,509.98|
|assets, intangible assets and|||
|other long term assets|||
|Cash paid for investment|||
|Net cash received from|||
|payment by subsidiaries and|||
|other operating units|||
|Other investment related|||
|cash payments|||
|Subtotal of cash flow out from|||
||15,746,936.23|2,795,509.98|
|investment activity|||
|Net cash flow arising from|||
||-14,346,936.23|-2,123,509.98|
|investment activities|||
|III. Cash flows arising from|||
|fund raising activities:|||
|Cash received from|||
|absorption of investment|||
|Cash received from|||
||485,000,000.00|446,900,000.00|
|borrowings|||
|Cash received from bond|||
|issuing|||
|Other fund-raising related|||
|cash receipts|||
|Subtotal of cash flow in from|||
||485,000,000.00|446,900,000.00|
|fund raising activity|||
|Cash paid for liabilities|||
||540,500,000.00|289,800,000.00|
|repayment|||
|Cash paid for|||
|dividend/profit distribution or|46,682,224.13|12,877,937.77|
|repayment of interest|||
|Other fund-raising related|||
||895,383.00|502,986.00|
|cash payments|||
|Subtotal of cash flow out from|||
||588,077,607.13|303,180,923.77|
|fund raising activity|||
|Net cash flow arising from|||
||-103,077,607.13|143,719,076.23|
|fund-raising activities|||
|IV. Influence from change of|||
|exchange rate upon cash and|||
|cash equivalents|||
|V. Net increase of cash and|||
||17,166,092.27|-19,531,431.57|
|cash equivalents|||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|Plus: Opening balance of|||
||27,929,968.24|51,372,778.02|
|cash and cash equivalents|||
|VI. Ending balance of cash and|||
||45,096,060.51|31,841,346.45|
|cash equivalents|||

Legal Representative: Lai Weixuan Chief Financial Officer: Hu Xinglong Manager of the Accounting Dept: Hu Xinglong
FIYTA Holdings Ltd. 2014 Semi-Annual Report 7. Consolidated Statement of Changes inOwner’s Equity
Prepared by FIYTA Holdings Ltd.
Amount in the reporting period
In CNY
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in the reporting period||||||||||
||Owner’s equity attributable to the parent company||||||||||
||Paid up||||||||||
|||||||||||Total|
|Items|capital||Less:|||Generic|||Minority||
|||Capital||Special|Surplus||Retained|||owners’|
||(or||shares in|||risk||Others|equity||
|||reserve||reserve|reserve||earnings|||equity|
||capital||stock|||reserve|||||
||stock)||||||||||
|I. Ending balance of the previous|392,767,|525,506,|||156,714,||469,706,|-8,260,8|2,384,907.|1,538,819,5|
|year|870.00|952.78|||094.20||600.67|33.09|19|91.75|
|Plus: Change in accounting|||||||||||
|policy|||||||||||
|Correction of previous|||||||||||
|errors|||||||||||
|Others|||||||||||
|II. Opening balance of the report|392,767,|525,506,|||156,714,||469,706,|-8,260,8|2,384,907.|1,538,819,5|
|year|870.00|952.78|||094.20||600.67|33.09|19|91.75|
|III. Decrease/increase of the report|||||||49,007,0|2,256,19|-1,292,966.|49,970,311.|
|year (decrease is stated with “-“)|||||||86.10|1.67|01|76|
||||||||88,283,8|||88,383,300.|
|(I) Net profit|||||||||99,427.70||
||||||||73.10|||80|
|||||||||2,256,19||2,263,797.9|
|(II) Other comprehensive income|||||||||7,606.29||
|||||||||1.67||6|
||||||||88,283,8|2,256,19||90,647,098.|
|Subtotal of the above (I) and (II)|||||||||107,033.99||
||||||||73.10|1.67||76|
|(III) Owners’ input and decrease of|||||||||-1,400,000.|-1,400,000.|
|capital|||||||||00|00|
||||||||||-1,400,000.|-1,400,000.|
|1. Capital invested by the owners|||||||||||
||||||||||00|00|
|2. Amount of payment for shares|||||||||||
|charged to owners’ equity|||||||||||
|3. Others|||||||||||
||||||||-39,276,|||-39,276,787|
|(IV) Profit distribution|||||||||||
||||||||787.00|||.00|
|1. Provision of surplus reserve|||||||||||
|2. Provision of general risk reserve|||||||||||
|3. Distribution to the owners (or|||||||-39,276,|||-39,276,787|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|shareholders)||||787.00|||.00|
|4. Others||||||||
|(V) Internal carry-forward of||||||||
|owners’ equity||||||||
|1. Conversion of capital reserve||||||||
|into capital (or capital stock)||||||||
|2. Conversion of surplus reserve||||||||
|into capital (or capital stock)||||||||
|3. Loss made up with surplus||||||||
|reserve||||||||
|4. Others||||||||
|(VI) Special reserve||||||||
|1. Provision in the report period||||||||
|2. Applied in the report period||||||||
|(VII) Others||||||||
|IV. Ending balance of the report|392,767,|525,506,|156,714,|518,713,|-6,004,6|1,091,941.|1,588,789,903.51|
|period|870.00|952.78|094.20|686.77|41.42|18||

 Amount of Previous Year
In CNY
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount of Previous Year||||||||||
||Owner’s equity attributable to the parent company||||||||||
||Paid up||||||||||
|||||||||||Total|
|Items|capital||Less:|||Generic|||Minority||
|||Capital||Special|Surplus||Retained|||owners’|
||(or||shares in|||risk||Others|equity||
|||reserve||reserve|reserve||earnings|||equity|
||capital||stock|||reserve|||||
||stock)||||||||||
|I. Ending balance of the previous|392,767,|525,506,|||148,587,||386,984,|-7,169,5|2,407,597.|1,449,085,2|
|year|870.00|952.78|||680.61||676.78|55.04|94|23.07|
|Plus: Retroactive adjustment|||||||||||
|arising from consolidation of the|||||||||||
|enterprises under common control|||||||||||
|Plus: Change in accounting|||||||||||
|policy|||||||||||
|Correction of previous|||||||||||
|errors|||||||||||
|Others|||||||||||
|II. Opening balance of the report|392,767,|525,506,|||148,587,||386,984,|-7,169,5|2,407,597.|1,449,085,2|
|year|870.00|952.78|||680.61||676.78|55.04|94|23.07|
|III. Decrease/increase of the report|||||8,126,41||82,721,9|-1,091,2||89,734,368.|
||||||||||-22,690.75||
|year (decrease is stated with “-“)|||||3.59||23.89|78.05||68|
||||||||130,125,|||130,125,019|
|(I) Net profit|||||||||-104.67||
||||||||124.48|||.81|
|(II) Other comprehensive income||||||||-1,091,2|-22,586.08|-1,113,864.1|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
||||||78.05||3|
|||||130,125,|-1,091,2||129,011,155|
|Subtotal of the above (I) and (II)||||||-22,690.75||
|||||124.48|78.05||.68|
|(III) Owners’ input and decrease of||||||||
|capital||||||||
|1. Capital invested by the owners||||||||
|2. Amount of payment for shares||||||||
|charged to owners’ equity||||||||
|3. Others||||||||
||||8,126,41|-47,403,|||-39,276,787|
|(IV) Profit distribution||||||||
||||3.59|200.59|||.00|
||||8,126,41|-8,126,4||||
|1. Provision of surplus reserve||||||||
||||3.59|13.59||||
|2. Provision of general risk reserve||||||||
|3. Distribution to the owners (or||||-39,276,|||-39,276,787|
|shareholders)||||787.00|||.00|
|4. Others||||||||
|(V) Internal carry-forward of||||||||
|owners’ equity||||||||
|1. Conversion of capital reserve||||||||
|into capital (or capital stock)||||||||
|2. Conversion of surplus reserve||||||||
|into capital (or capital stock)||||||||
|3. Loss made up with surplus||||||||
|reserve||||||||
|4. Others||||||||
|(VI) Special reserve||||||||
|1. Provision in the report period||||||||
|2. Applied in the report period||||||||
|(VII) Others||||||||
|IV. Ending balance of the report|392,767,|525,506,|156,714,|469,706,|-8,260,8|2,384,907.|1,538,819,5|
|period|870.00|952.78|094.20|600.67|33.09|19|91.75|

 Legal Representative: Lai Weixuan Chief Financial Officer: Hu Xinglong Manager of the Accounting Dept: Hu Xinglong
FIYTA Holdings Ltd. 2014 Semi-Annual Report 8. Statement of Change inOwner’s Equity, Parent Company
Prepared by FIYTA Holdings Ltd.
Amount in the reporting period
In CNY
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount in the reporting period||||||||
||Paid up||||||||
||||Less:|||||Total|
|Items|capital (or|Capital||Special|Surplus|Generic risk|Retained||
||||shares in|||||owners’|
||capital|reserve||reserve|reserve|reserve|earnings||
||||stock|||||equity|
||stock)||||||||
|I. Ending balance of the previous|392,767,87|531,162,49|||156,714,09||341,134,31|1,421,778,7|
|year|0.00|3.88|||4.20||6.88|74.96|
|Plus: Change in accounting|||||||||
|policy|||||||||
|Correction of previous|||||||||
|errors|||||||||
|Others|||||||||
|II. Opening balance of the report|392,767,87|531,162,49|||156,714,09||341,134,31|1,421,778,7|
|year|0.00|3.88|||4.20||6.88|74.96|
|III. Decrease/increase of the report|||||||66,922,683.|66,922,683.|
|year (decrease is stated with “-“)|||||||46|46|
||||||||106,199,47|106,199,470|
|(I) Net profit|||||||||
||||||||0.46|.46|
|(II) Other comprehensive income|||||||||
||||||||106,199,47|106,199,470|
|Subtotal of the above (I) and (II)|||||||||
||||||||0.46|.46|
|(III) Owners’ input and decrease of|||||||||
|capital|||||||||
|1. Capital invested by the owners|||||||||
|2. Amount of payment for shares|||||||||
|charged to owners’ equity|||||||||
|3. Others|||||||||
||||||||-39,276,787|-39,276,787|
|(IV) Profit distribution|||||||||
||||||||.00|.00|
|1. Provision of surplus reserve|||||||||
|2. Provision of general risk reserve|||||||||
|3. Distribution to the owners (or|||||||-39,276,787|-39,276,787|
|shareholders)|||||||.00|.00|
|4. Others|||||||||
|(V) Internal carry-forward of owners’|||||||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||
|-|-|-|-|-|-|
|equity||||||
|1. Conversion of capital reserve into||||||
|capital (or capital stock)||||||
|2. Conversion of surplus reserve||||||
|into capital (or capital stock)||||||
|3. Loss made up with surplus||||||
|reserve||||||
|4. Others||||||
|(VI) Special reserve||||||
|1. Provision in the report period||||||
|2. Applied in the report period||||||
|(VII) Others||||||
|IV. Ending balance of the report|392,767,87|531,162,49|156,714,09|408,057,00|1,488,701,458.42|
|period|0.00|3.88|4.20|0.34||

 Amount of Previous Year
In CNY
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount of Previous Year||||||||
||Paid up||||||||
||||Less:|||||Total|
|Items|capital (or|Capital||Special|Surplus|Generic risk|Retained||
||||shares in|||||owners’|
||capital|reserve||reserve|reserve|reserve|earnings||
||||stock|||||equity|
||stock)||||||||
|I. Ending balance of the previous|392,767,87|531,162,49|||148,587,68||307,273,38|1,379,791,4|
|year|0.00|3.88|||0.61||1.61|26.10|
|Plus: Change in accounting|||||||||
|policy|||||||||
|Correction of previous|||||||||
|errors|||||||||
|Others|||||||||
|II. Opening balance of the report|392,767,87|531,162,49|||148,587,68||307,273,38|1,379,791,4|
|year|0.00|3.88|||0.61||1.61|26.10|
|III. Decrease/increase of the report|||||8,126,413.5||33,860,935.|41,987,348.|
|year (decrease is stated with “-“)|||||9||27|86|
||||||||81,264,135.|81,264,135.|
|(I) Net profit|||||||||
||||||||86|86|
|(II) Other comprehensive income|||||||||
||||||||81,264,135.|81,264,135.|
|Subtotal of the above (I) and (II)|||||||||
||||||||86|86|
|(III) Owners’ input and decrease of|||||||||
|capital|||||||||
|1. Capital invested by the owners|||||||||
|2. Amount of payment for shares|||||||||
|charged to owners’ equity|||||||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||
|-|-|-|-|-|-|
|3. Others||||||
||||8,126,413.5|-47,403,200|-39,276,787|
|(IV) Profit distribution||||||
||||9|.59|.00|
||||8,126,413.5|-8,126,413.||
|1. Provision of surplus reserve||||||
||||9|59||
|2. Provision of general risk reserve||||||
|3. Distribution to the owners (or||||-39,276,787|-39,276,787|
|shareholders)||||.00|.00|
|4. Others||||||
|(V) Internal carry-forward of owners’||||||
|equity||||||
|1. Conversion of capital reserve into||||||
|capital (or capital stock)||||||
|2. Conversion of surplus reserve into||||||
|capital (or capital stock)||||||
|3. Loss made up with surplus||||||
|reserve||||||
|4. Others||||||
|(VI) Special reserve||||||
|1. Provision in the report period||||||
|2. Applied in the report period||||||
|(VII) Others||||||
|IV. Ending balance of the report|392,767,87|531,162,49|156,714,09|341,134,31|1,421,778,7|
|period|0.00|3.88|4.20|6.88|74.96|

 Legal Representative: Lai Weixuan Chief Financial Officer: Hu Xinglong Manager of the Accounting Dept: Hu Xinglong
FIYTA Holdings Ltd. 2014 Semi-Annual Report III. Company Profile
Fiyta Holdings Ltd. (hereinafter referred to as the Company) was reorganized, incorporated and renamed from Shenzhen Fiyta Timer Industry Company on December 25 1992 with approval by the General Office of Shenzhen MunicipalPeople’s Government with Document SHEN FU BAN FU[1992] No. 1259 and with China National Aero-Technology Import& Export Corporation Shenzhen Industry& Trade Center (which was renamed as China National Aero-Technology Corporation Shenzhen) as the sponsor.
On March 10, 1993, the Company, with approval by thePeople’s Bank of China Shenzhen Special Economic Zone Branch[SHEN REN YIN FU ZI (1993) No.070], issued publically domestic CNY based common shares (A-shares) and CNY based special shares (B-shares). In accordance with the Approval Document of Shenzhen Municipal Securities Regulatory Office SHEN ZHENG BAN FU[1993] No. 20 and the Approval Document of Shenzhen Stock Exchange SHEN ZHENG SHI ZI (1993) No. 16, theCompany’s A-shares and B-shares were all listed with Shenzhen Stock Exchange for trading commencing from June 3, 1993.
Ended June 30, 2014, the Company accumulatively issued total capital stock of 392,767,870 shares. The principal business activities of the Company and its subsidiaries (collectively the Group) are: production and sales of various pointer type quartz watches and units, spares and parts, various timing apparatus, processing and wholesale of K gold watches and ornament watches (for production site, separate application should be submitted); domestic trade, materials supply and sales (excluding the commodities for exclusive operation, exclusive control and monopoly); property management and lease; import and export, design and construction; import and export business (implemented according to Document SHEN MAO GUAN DENG ZHENG ZI NO. 2007-072). Legal Representative: Lai Weixuan; TheCompany’s registered office address: FIYTA Technology Building, Gaoxin S. Road One, Nanshan District, Shenzhen.
TheCompany’s parent is AVIC International Holdings Limited and the eventual controller is Aviation Industry Corporation of China (hereinafter referred to as AVIC).
The Company has established theShareholders’ General Meeting, the Board of Directors, the Supervisory Committee, the Audit Committee, the Strategy Committee and the Nomination, Remuneration and Assessment Committee as the governance organs, etc.
The financial statements were approved by the Board of Directors of the Company for issuing on August 22, 2014.
FIYTA Holdings Ltd. 2014 Semi-Annual Report IV. Principal Accounting Policies, Accounting Estimate and Correction of Previous Errors
1. Base for Preparation of the Financial Statements
TheGroup’s financial statements are prepared with the assumption of continuous operation and according to the actually incurred transactions and matters. According to the Enterprise Accounting Standards– Basic Standards and 38 Specific Accounting Standards promulgated by the Ministry of Finance in February 2006 as well as the successively published application guides, interpretation and other relevant regulations of the enterprise accounting standards (hereinafter all referred to as the Enterprise Accounting Standards) and the provisions on information disclosure as specified in the Rules for the Compilation and Submission of Information Disclosure by Companies That Offer Securities to the Public No.15– General Provisions of Financial Report (Revision in 2010) promulgated by China Securities Regulatory Commission.
According to the relevant provisions of the enterprise accounting standards, the Company takes the accrual basis as the base of accounting. Except some financial instruments, these financial statements are all measured based on historical cost. In case any asset experiences impairment, the impairment reserve is provided according to the relevant provisions.
2. Declaration on Adherence to the Accounting Standards for Enterprises
The financial statements prepared by the Group comply with the enterprise accounting standards, have truly and fully reflected the financial position of the Company and the Group as at June 30, 2014 and such information as its operation results and cash flow of the first half year of 2014. In addition, the financial statements of Company and the Group comply with the Rules for the Compilation and Submission of Information Disclosure by Companies That Offer Securities to the Public No.15– General Provisions of Financial Report (Revision in 2010) concerning the requirement on disclosure of financial statements and the notes promulgated by China Securities Regulatory Commission in all material aspects.
3. Accounting Period
The Group classifies accounting period into annual and semi-annual periods. A mid-term accounting period refers to a reporting period shorter than an entire fiscal year. TheGroup’s fiscal year adopts the Gregorian calendar year, namely from January 1 to June 30 of a year.
4. Functional currency for bookkeeping
Renminbi is the currency in the major economic environment where theCompany’s and its domesticsubsidiaries’ premises are located. The Company and its domestic subsidiaries take CNY as the recording currency.
Except Switzerland based Montres Chouriet SA (hereinafter referred to as the Swiss Company), a subsidiary of FIYTA (Hong Kong) Limited (hereinafter referred to as FIYTA (Hong Kong) which takes
Swiss Franc as the recording currency according to the major economic environment of the place where
FIYTA Holdings Ltd. 2014 Semi-Annual Report its premises is located, the other overseas subsidiaries, including Harmony World Watches International Limited (World Watch International), one of the subsidiaries of Shenzhen Harmony World Watches Center Co., Ltd. (Harmony), FIYTA (Hong Kong) Limited, 68-Station Limited (68-Station), one of FIYTA (Hong Kong)Limited’s subsidiaries, NATURE ART LTD., an entity controlled by 68-Station for special purpose (Nature Art) and PROTOP LTD (PROTOP) as its recording currency according to the major economic environment of the place where their premises are located.
The currency adopted by the Group in preparation of the financial statements is Chinese yuan (CNY). 5. Accounting for consolidation of enterprises under the common control and not under the common control
(1) Consolidation of enterprises under the common control
Consolidation of an enterprise under the common control refers to an enterprise involved in consolidation is under the control by one party or more before and after consolidation while such control is not temporary. In consolidation of the enterprises not under the common control, the party that has acquired the control power over the other enterprises involved in the consolidation refers to the consolidator and the other enterprise(s) involved in the consolidation is/are the consolidatee(s). Date of consolidation refers to the date when the consolidator actually acquires the control over the consolidatee.
The asset and liability acquired by the consolidator should be measured based on the book value of the consolidatee on the date of consolidation.The difference between the book value of net assets acquired by the consolidator, the book value of the consolidate valuable consideration paid or the total book value of the issued shares was used to adjust the capital reserve (capital stock premium . In case the capital reserve (capital stock premium) is not enough to be written-down, the retained earnings are adjusted. The direct expenses incurred in enterprise consolidation to the consolidating party is charged to the current gain and loss.
(2) Enterprise consolidation not under the common control
Consolidation of a party not under the same control refers to an enterprise involved in consolidation is not under the same eventual control by one party or more before and after consolidation. In consolidation of the enterprises not under the same control, the party that has acquired the control power over the other enterprises involved in the consolidation refers to the purchaser and the other enterprise(s) involved in the consolidation is/are the purchasee. Date of purchase refers to the date when the purchaser actually acquires the control over the purchasee.
For the consolidation of enterprises not under the same control, the consolidation costs consist of the fair value of the assets paid, liabilities incurred or assumed and the issued equity based securities for the purpose of acquisition of the control power over the purchasee and expenses incurred in connection with the consolidation, including the charges for audit, law service, appraisal and consulting and other administrative costs are charged to the current gains and losses. The transaction costs of the equity
FIYTA Holdings Ltd. 2014 Semi-Annual Report securities or debt securities issued by the purchaser as the consolidation consideration are counted to the initially recognized amount of the equity securities or debt securities. The contingent consideration involved is recorded in the consolidation costs based on the fair value as at the purchase date; for the contingent consideration necessary to be adjusted against the conditions which already exist as at the purchase date or further evidence within 12 months after the purchase date, the consolidated goodwill should be adjusted correspondingly. The consolidation cost incurred to the purchaser and the recognizable net asset acquired from consolidation are measured based on the fair value of the purchase day. The difference of the consolidation cost greater than the fair value share of the recognizable net asset on the date of purchase is recognized as goodwill. In case the consolidation cost is less than the share of the faire value of thepurchasee’s distinguishable net assets, the Company first of all rechecks the fair value of thepurchasee’s various distinguishable assets, liabilities or contingent liabilities and measurement of the consolidation costs. In case the consolidation cost is still smaller than the share of the fair value of thepurchasee’s distinguishable net assets acquired in the consolidation after the recheck, its difference is recorded in the current gain and loss.
In case thepurchasee’s Offsettable provisional difference acquired by the purchaser is not recognized due to that it does not comply with the conditions for recognition of the deferred income tax asset, within 12 months after the purchase date, if the new or further information as obtained shows that the relevant conditions as at the purchase date already exist, it is predicted that the economic benefit of thepurchasee’s Offsettable provisional difference as at the purchase date can be realized, the relevant deferred income tax asset is recognized; meanwhile, the goodwill is reduced. In case the goodwill is not enough to be written-down, the difference shall be recognized as the current gain/loss. Except the aforesaid conditions, the deferred income tax asset recognized in connection with the enterprise consolidation is recorded in the current gain/loss.
6. Specific Accounting Policy for Disposal of Equity in Steps Up to Loss of the Control Power (1) Principle for judging “One-Package Transaction”.
Inapplicable
(2) Method for accounting treatment of the “One-Package Transaction”
Inapplicable
(3) Method for accounting treatment of Non “One-Package Transaction”
Inapplicable
7. Preparation of Consolidated Financial Statements
(1) Method for Preparation of Consolidated Financial Statements
The consolidation range of consolidated financial statements is determined with control as the base. Control refers to that the Company is able to decide the financial and operating policy of the investee, the power against which the Company is able to obtain interest from the operation activities of the investee. Consolidation range includes the Company and all the subsidiaries. A subsidiary refers to an
FIYTA Holdings Ltd. 2014 Semi-Annual Report enterprise or entity under theCompany’s control.
(2) The relevant accounting process should be disclosed for the equity in the same subsidiary bought in and then sold out , or sold out and then bought within two fiscal years in succession The Group consolidates the subsidiaries commencing from the date when thesubsidiaries’ net assets and production and operating decision making power are actually under theCompany’s control. The consolidation shall stop commencing from the date when the actual control authority is lost. For a subsidiary to be disposed, the operation result and cash flow prior to the day of disposal have been properly included in the consolidated profit statement and consolidated cash flow statement; for a subsidiary to be disposed in the current period, the consolidated balance sheet at the beginning of the period is not adjusted. For the subsidiaries increased through consolidation of the enterprises not under the same control, the operating results and cash flow after the purchase date have been properly included in the consolidated profit statement and consolidated statement of cash flow while the amount at the beginning of the period and comparative amount in the consolidated financial statements shall not be adjusted. For the subsidiaries increased through consolidation of the enterprises under the same control, the operating results and cash flow from the very period of consolidation to the consolidation date have been properly included in the consolidated profit statement and consolidated statement of cash flow; moreover, comparative amount in the consolidated financial statements shall be adjusted at the same time.
In process of preparation of consolidated statements, in case the accounting policy or fiscal term adopted by the subsidiaries and the Company are not identical, in preparation of the consolidated financial statements, consolidation is made after necessary adjustment of thesubsidiaries’ financial statements in terms of theCompany’s accounting policy or fiscal term. For the subsidiaries acquired through consolidation of enterprises not under the same control, the financial statements are adjusted with the fair value of recognizable net assets on the date of purchase as the base.
All the material current account balance, transactions and unrealized profit within the Group are offset at the time of preparation of the consolidated financial statements.
The part in thesubsidiaries’shareholders’ equity and the net current gain and loss which do not belong to the part held by the Company are taken as minority equity and minority gain and loss and are respectively listed under theshareholders’ equity and net profit separately in the consolidated financial statement. The part of the current net gain and loss of a subsidiary belonging to minorityshareholders’ equity is presented as “minorityshareholders’ gain and loss” under the item of net profit in the consolidated profit statement. In case the loss of a subsidiary shared by the minority shareholders has exceeded the share of theowners’ equity of the subsidiary enjoyable by the minority shareholders at the beginning of the period, the minorityshareholders’ equity shall be written-down.
When the control power over an existing subsidiary has lost due to disposal of the investment in partial equity or due to other reason, the remaining equity shall be re-measured with reference to the fair value as at the date when the control power got lost. The balance of the sum of the consideration obtained from disposal of the equity and the fair value of the remaining equity less the portion of the net assets
FIYTA Holdings Ltd. 2014 Semi-Annual Report enjoyable in the original subsidiary continuously calculated commencing from the date of purchase worked out based on the original shareholding proportion is counted to the return on investment of the very period when the control power was lost. The other comprehensive income in connection with the investment in the equity of the original subsidiary was altogether transferred to the return on the investment in the very period when the control power was lost. Afterwards, this part of residual equity undergoes follow-up measurement according to the Enterprise Accounting Standards No. 2– Long Term Equity Investment or the Enterprise Accounting Standards No. 22– Financial Instrument Recognization and Measurement, etc. For the detail, refer to “Long Term Equity Investment” or “Financial Instruments”. 8. Recognition of Cash and Cash Equivalent
TheGroup’s cash and cash equivalents include cash on hand, deposits which may be used for payment at any time and investment held by the Group with short term (usually due within three months
commencing from the date of purchase), high liquidity, easy to be turned into cash with given amount and very small risk of change in value.
9. Transactions in Foreign Currency and Foreign Currency Translation
(1) Transactions in Foreign Currency
In initial recognition of translation in foreign currency when incurs, the translation into amount in recording currency based on the spot rate (which usually refers to the average of the foreign exchange rate published by thePeople’s Bank of China on the very day of incurrence); however, the foreign currency exchange business or transaction involved foreign currency exchange incurred in the Company is converted into amount in recording currency according to the exchange rate actually adopted. (2) Translation for Financial Statements in Foreign Currency
In case the preparation of the consolidated financial statements involves overseas operation, if there is the monetary item in foreign currency which substantially composes net investment for overseas operation, the exchange difference arising from the change of exchange rate shall be stated in the item of “the translation difference in foreign currency statement” of theowner’s equity; in handling the overseas operation, the exchange difference is counted to the current gain and loss.
The financial statements in foreign currency for operation outside Mainland China are translated into statements in Renminbi after conversion according to the following methods: all the asset and liability items in the balance sheet are translated based on the spot rate on the balance sheet day. For theowner’s equity type items, except the item of “retained earnings”, the other items are translated based on the spot exchange rate at the time of incurrence. The income and expense items in the statement of profit are translated based on the current average exchange rate on the date of transaction. The retained earnings at year beginning is the retained profit of the previous year end after translation. The retained profit at year end is calculated and stated based on the items of the profit distribution after translation. The difference between the asset items and liability items and the total of theowners’ equity items after translation is recognized as other comprehensive income and separately stated under the item ofshareholders’ equity as the translation discrepancy of statements in foreign currency. In disposal of operation outside Mainland China with the control power lost, the difference from translation of
FIYTA Holdings Ltd. 2014 Semi-Annual Report statements in foreign currency stated under the item ofowner’s equity in the balance sheet and in connection with foreign operation is, all or based on the proportion of operation outside mainland China as disposed, charged to the disposal of current gain and loss.
Foreign currency cash flow and cash flow of overseas subsidiaries are translated based on the current average exchange rate as at the date when the cash flow incurs. The amount affected by the change of exchange rate upon cash is used as the adjustment item and is separately presented in the cash flow statement.
The amount at year beginning and actual amount of the previous year are stated based on the amount of the financial statements of the previous year after translation.
10. Financial instruments
(1) Classification of Financial Instruments
Classification of financial assets
Financial assets are classified into the following categories at the time of initial recognition: financial asset measured based on the fair value and whose change is recorded in the current gain and loss, held-to-maturity investment, loan, accounts receivable and available for sale asset.
Classification of financial liabilities
Financial liabilities are classified into financial liabilities and other financial liabilities which are measured based on the fair value at the time of initial recognition and whose change is charged to the current gain and loss.
(2) Basis for Recognition of Financial Instruments and Measurement Method
Recognition and Measurement of Financial Instruments
For trading of financial assets in general way, accounting recognition and termination recogniion are conducted on the date of transaction. Financial assets are classified into the following categories at the time of initial recognition: financial asset measured based on the fair value and whose change is recorded in the current gain and loss, held-to-maturity investment, loan, accounts receivable and available for sale asset. Financial asset is measured based on the fair value at initial recognition. For the financial asset which is measured based on the fair value and the change is charged to the current gain and loss, the relevant transaction expenses are directly charged to the current gain and loss; for other types of financial asset, the relevant transaction expenses are charged to the initially recognized amount. TheGroup’s financial assets are mainly the accounts receivable.
Accounts receivable refer to the non-derivative financial assets without quotation in the active market and the recoverable amount fixed or determinable. TheGroup’s financial assets in term of accounts
receivable consist of notes receivable, accounts receivable and other receivables. Accounts receivable
FIYTA Holdings Ltd. 2014 Semi-Annual Report undergoes follow-up measurement by using the effective interest method based on the amortized cost. The again or loss arising from termination of recognition, incurrence of impairment or amortization is recorded in the current gains and losses.
Measurement of Financial Liabilities
Financial liabilities are classified into financial liabilities and other financial liabilities which are measured based on the fair value at the time of initial recognition and whose change is charged to the current gain and loss. Financial liabilities are measured based on the fair value at initial recognition. For the financial liabilities which are measured based on the fair value and the change is charged to the current gain and loss, the relevant transaction expenses are directly charged to the current gain and loss; for other types of financial liabilities, the relevant transaction expenses are charged to the initially recognized amount. The financial liabilities of the Group are mainly the other financial liabilities and financial guarantee contract.
① Other financial liabilities
Other financial liabilities undergo follow-up measurement based on the amortized cost by means of actual interest rate method; the gain or loss arising from the termination of recognition or amortization, is charged to the current gain and loss.
② Financial guarantee contract
For a financial guarantee contact of financial liability which is not specified for measurement based on the fair value and its change being charged to the current gain and loss, the initial recognition is made based on the fair value; after the initial recognition, the follow-up measurement shall be made for the higher of the amount and the initially recognized amount determined according to the Accounting Standards for Enterprises No. 13– Contingencies less the balance of the accumulated amortized amount as determined according to the Accounting Standards for Enterprises No. 14– Income.
(3) Basis for Recognition of Transfer of Financial Assets and Measurement Method
Recognition of financial assets in compliance with one of the following conditions shall be terminated:① the contractual right for receiving the cash flow of the financial asset isterminated;② the financial asset has been transferred while almost all the risks and remuneration in connection with the ownership of the financial asset has been transferred to the party of transfer in;③ the financial assets have been transferred although the enterprise has neither transferred nor retained almost all the risks and remuneration to the ownership of financial assets but the control over the financial asset has been given up.
In case the enterprise has neither transferred nor retained all the risks and rewards involved in the ownership of the financial assets but has not given up the control over the financial assets, the concerned financial assets can continue to be recognized based on the level of the financial assets transferred and the relevant liabilities shall be recognized correspondingly. The level of the involved financial assets transferred refers to the level of risks the enterprise is confronted with in change of the financial asset.
FIYTA Holdings Ltd. 2014 Semi-Annual Report In case the overall transfer of the financial assets can satisfy the conditions of termination of recognition, the balance between the book value of the financial assets as transferred, the consideration received due to the transfer and the sum of the accumulative amount of change of the fair value recorded in other comprehensive income is recorded in the current gain and loss.
If partial transfer of financial assets can satisfy the conditions for termination of recognition, the book value of the financial assets transferred is apportioned based on its relevant fair value between the part with recognition terminated and the part with recognition not terminated; and the difference between the sum of the consideration received due to the transfer and the accumulative amount involved in change of the fair value of the part with recognition terminated which should be recorded in the other comprehensive income and the aforesaid book amount as apportioned is recorded in the current gain and loss.
(4) Termination of Recognition of Financial Liabilities
The present obligations of financial liabilities have been entirely or partially been eliminated before termination of recognition of such financial liabilities or part of them. An agreement is concludd between the Group (the debtor) and the creditor, the existing financial liabilities are replaced by means of undertaking the new financial liabilities while the contract articles concerning the new financial liabilities and the existing financial liabilities are substantially different, the recognition of the existing financial liabilities are terminated and at the same time the new financial liabilities are recognized.
In case recognition of financial liabilities is entirely or partially terminated, the difference between the book value of the part with recognition terminated and the consideration paid (including the non-cash assets transferred out or the new financial liabilities as undertaken) is recorded in the current gain and loss.
(5) Method for Recognition of the Fair Value of Financial Assets and Financial Liabilities
Fair value refers to the amount involved in the assets exchange or settlement of obligation conducted between the two parties of transaction on volunteer basis in a fair transaction. When there exists active market for financial instruments, the Group determines the fair value with the quotation in the active market. Quotation in the active market refers to the price easily and regularly accessable to the exchange, broker, guild, price service agent, etc. and represents the transaction price actually incurred in the market in fair transaction. In case the financial instruments do not exist in the active market, the Group uses the value estimation technique to determine its fair value. The value estimation technique includes the price used in the latest market transaction conducted by the parties familiar with the situation on volunteer basis with reference to the current fair value of substantially the same other financial instruments, the cash flow discount method and option pricing model, etc.
(6) Method for Testing Financial Assets (with Accounts Receivable Exclusive) and Provision for Impairment
FIYTA Holdings Ltd. 2014 Semi-Annual Report Inapplicable
(7) In case any undue held-to-maturity investment is reclassified as available-for-sale asset, specify the intention of holding or the basis of the ability change taken place
Inapplicable
11. Recognition of Provision for Bad Debts of Accounts Receivable and Way of Provision
(1) The determination criteria of bad debts
The Group checks the book value of accounts receivable on the balance sheet day and provides reserve for impairment in case there exist following objective evidences showing that accounts receivable have experienced impairment:① A debtor is involved in serious financial difficulty;② The debtor breaches the contract, such as breaching contract in payment of interest or the principal or delaying the payment, etc.;③ Debtor may get bankrupt or conduct other financial reorganization;④ Other objective basis shows impairment incurred in the account receivable.
(2) Provision for Bad Debts
① Criteria for recognizing the reserve for bad debt of the accounts receivable with significant individual amount and with the reserve for bad debt provided on individual basis and the way of provision
The Group classifies an account receivable with single amount exceeding CNY 800,000.00 and other receivable with single amount exceeding CNY 500,000.00 as account receivable with significant single amount.
The Group tests impairment of individual accounts receivable with significant single amount, separately tests the financial assets without impairment incurred, including the impairment test of the portfolio of the financial asset with similar credit risk characteristics. The accounts receivable in which loss from impairment has been recognized in the individual test shall no longer undergo impairment test in the portfolio of the accounts receivable with similar credit risk characteristics.
② Basis for determining the accounts receivable with the reserve for bad debt provided based on the combination of the credit risks and provision of the reserve for bad debt
A. Basis for determining the combination of the characteristics of the credit risk
The Group groups the financial assets based on the similarity of the characteristics and relevance of the credit risks for the accounts receivable with insignificant single amount or with significant amount but not experiencing impairment through single-item based testing. These credit risks usually reflect adebtor’s ability to repay all the due amount according to the contract of such assets and are related with the estimation of the future cash flow of the inspected assets.
Basis on determining different combinations:
|||||
|-|-|-|-|
||Items||Basis for determining combinations|
|Grouping based on the accounting age||Length of the accounting age||
|Grouping of the designated accounts||The Company does not provide reserve for bad||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||
|-|
|debts for the reserve due from the employees,payment due from the subsidiaries in theconsolidation range and the sales revenue fromthe last settlement day of the supermarket to thebalance sheet day.|

B. Way of provision for bad debt as determined based on the combination with the credit risk characteristics
In making impairment test by combination, the amount of the reserve for bad debt is determined according to the combination structure of the accounts receivable and the similar credit risk characteristics (thedebtor’s ability to repay the debt according to the contract) and based on the historical loss experience, the present economic conditions and the assessment of the loss already existed in the combination of the predicted accounts receivable.
Method of provision for bad debt based on different combinations:
|||||
|-|-|-|-|
||Items||Way of Provision|
|Grouping based on the accounting age||Provision for bad debt based on aging analysis||
|Grouping of the designated accounts||Based on the characteristics of its risk, there existsno risk of impairment and no reserve for bad debtis provided||

a. In grouping, grouping provision approach for provision of bad debt reserve by using the aging analysis method
|||||||
|-|-|-|-|-|-|
||Ages||Provision proportion of the||Provision proportion of other|
||||accounts receivable (%)||receivables (%)|
|Within 1 year (including 1 year,the same below)||5||5||
|1 to 2 years||10||10||
|2 to 3 years||30||30||
|Over 3 years||50||50||

b. In grouping, other method is used for provision of bad debt reserve:
|||||||
|-|-|-|-|-|-|
||Grouping Description||Provision proportion of the||Provision proportion of other|
||||accounts receivable (%)||receivables (%)|
|Grouping of specific accounts||-||-||

The Group does not provide bad debt reserve for the reserve receivable from employees, due from subsidiaries which should be included in the consolidation range, the sales revenue from the last settlement day of the supermarket to the balance sheet day in the current year because such accounts are highly recoverable and are quite impossible to turn into bad debt based on past experience.
③ Accounts receivable with insignificant single amount and provision of bad debt reserve on individual
basis
FIYTA Holdings Ltd. 2014 Semi-Annual Report For the accounts receivable with insignificant single amount but having the following characteristics, the Group makes separate impairment test. In case there is objective evidence showing that impairment has taken place, according to the balance of the present value of future cash flow lower than the book value, loss from impairment is recognized and the reserve for bad debt is provided, including the account receivable involved with dispute with the other party or lawsuit or arbitration; the accounts receivable in which there exists evident indication showing that a debtor may possibly be unable to implement the obligation of repayment.
(3) Reversal of reserve for doubtful accounts
In case there is objective evidence showing that the value of the account receivable has been recovered while it is objectively related with matters occurred after recognition of the loss, the loss from impairment originally recognized can be reversed and is recorded in the current gain and loss. However, the book value of such reversal shall not exceed the amortized cost as at the date of reversal of such account receivable for which it is assumed not provision for impairment was made.
(1) Bad debt reserves for accounts receivable with insignificant single amount
|||
|-|-|
||The Group classifies an account receivable withsingle amount exceeding CNY 800,000.00 andother receivable with single amount exceedingCNY 500,000.00 as account receivable withsignificant single amount.|
|Criteria for basis or amount for judging significant||
|single amount||
||The Group tests impairment of individual accountsreceivable with significant single amount,separately tests the financial assets withoutimpairment incurred, including the impairment testof the portfolio of the financial asset with similarcredit risk characteristics. The accounts receivablein which loss from impairment has beenrecognized in the individual test shall no longerundergo impairment test in the portfolio of theaccounts receivable with similar credit riskcharacteristics.|
|Method for provision of reserve for bad debt with||
|significant single amount on individual basis.||

(2) Accounts receivable for which reserve for bad debt is provided based on the combination
||||
|-|-|-|
||Provision method for||
||proding bad debt||
|Grouping Description||Basis for determining grouping|
||reserve based on||
||grouping||
|Grouping based on the|||
||Age Analysis|Length of the accounting age|
|accounting age|||
|Grouping of the|Other methods|The Company does not provide reserve for bad|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||
|-|-|
|designated accounts|debts for the reserve due from the employees,|
||payment due from the subsidiaries in the|
||consolidation range and the sales revenue from|
||the last settlement day of the supermarket to the|
||balance sheet day.|

In the grouping, age analysis is used for provision of reserve for bad debts:
||||
|-|-|-|
||Provision proportion of the|Provision proportion of other receivables|
|Age|||
||accounts receivable (%)|(%)|
|Within 1 year (including 1|||
||5.00%|5.00%|
|year)|||
|1 to 2 years|10.00%|10.00%|
|2 to 3 years|30.00%|30.00%|
|Over 3 years|50.00%|50.00%|

 In grouping, balance percentage is used for provision of reserve for bad debts
Inapplicable
In grouping, other method is used for provision of reserve for bad debts
|||
|-|-|
|Grouping Description|Method Description|
||Based on the characteristics of its risk, there exists no risk|
|Grouping of the designated accounts||
||of impairment and no reserve for bad debt is provided|

 (3) Accounts receivable with insignificant single amount and provision of bad debt reserve on individual basis
|||
|-|-|
||For the accounts receivable with insignificant single amount|
||but having the following characteristics, the Group makes|
||separate impairment test. In case there is objective evidence|
||showing that impairment has taken place, loss for impairment|
||is recognized based on the difference of the present value of|
|Reason of providing reserve for||
||future cash flow lower than the book value and reserve for bad|
|bad debt on individual basis||
||debt is provided, including the accounts receivable involving|
||dispute or lawsuit/arbitration with the other party and the|
||accounts receivable in which there exists evident indication|
||showing that a debtor may possibly be unable to implement|
||the obligation of repayment.|

12. Inventories
(1) Classification
Inventories mainly include raw materials, goods in process, commodity stocks, etc.
FIYTA Holdings Ltd. 2014 Semi-Annual Report (2) Pricing for delivered inventories
Pricing method: others
Inventories are priced based on the actual cost at the time of acquisition. Inventory costs include purchase cost, processing cost and other costs. Inventories are priced respectively according to the weighted average (for FIYTA watch stocks), specific identification (for famous brand watch stocks) and first in first out (for raw materials for FIYTA watches) at the time of procurement and delivery.
(3) Basis for determination of the net realizable value of inventories and the method for provision of the reserve for price falling of inventories
The net realizable value of the inventories refers to the amount of the estimated sales price of the inventory less the estimated sales costs to incur at the time of completion, sales expenses and relevant taxes in process of normal production and operation. In determining the net realizable value of inventory, with the obtained valid evidence as the base, the purpose of holding the inventory and the influence from the events after the balance sheet day is taken into consideration at the same time. Including:
① For the inventories in stock directly for sale, including finished products, commodities and materials for sale, etc., their realizable net value is determined based on the amount of the estimated sales prices of such inventories less the estimated sales expenses and relevant taxes.
②For the material inventories necessary to be processed, their realizable net value is the amount of the estimated sales price of the finished products as produced less the estimated costs to occur up to the time of completion, estimated sales expenses and relevant taxes in process of normal production and operation.
The Company provides the reserve for price falling of inventories based on the classification of models for the self-made FIYTA watch inventories.
For the world famous watches under distribution, the Company provides reserve for price falling of inventories on individual basis.
For the raw materials for FIYTA watches, based on the terminal sales status of FIYTA finished watches, reserve for price falling of inventories is provided with interchangeability of spares and parts and specialized classification of applications of materials taken into consideration.
On the balance sheet day, inventories are measured based on the lower of the cost and the net realizable value. Provision for price falling of inventory is made when the net realizable value is lower than the cost.
After provision for price falling of inventories, in case the influencing element for previous reduction of the inventory value has disappeared, causing the realizable net value of the inventory higher than the book value, the provision for price falling of the inventory originally made can be reversed and the reversed amount is charged to the current gain and loss.
FIYTA Holdings Ltd. 2014 Semi-Annual Report (4) Inventory System
The stock-taking system for inventories is perpetual inventory system.
(5) Amortization of low-value consumption goods and packing materials
Low-value consumption goods
Amortization method: One-off write-off method.
Packing materials
Amortization method: One-off write-off method.
13. Long-term equity investment
(1) Determination of the investment cost
For long term equity investment formed from enterprise consolidation, such as the long term equity investment obtained from consolidation of the enterprises under the same control, the share of the book value of theowners’ equity in the parties consolidated as obtained on the date of consolidation is taken as the initial investment cost. Through long term equity investment by means of consolidation of enterprises not under the same control, the enterprise consolidation costs include the sum of the assets paid by the purchaser, the liabilities incurred or undertaken, and the fair value of the equity securities issued. The agency fees for audit, legal services, appraisal and consulting services, etc. incurred in consolidation of enterprises and other relevant administrative expenses incurred to the purchaser should be recorded in the current gain and loss at the time of incurrence. The purchaser should count the trading expenses of equity securities or liability securities issued as the consolidation consideration to the amount of initial recognition of the equity securities or liability securities. The other equity investment except the long term equity investment formed from enterprise consolidation is initially measured based on the costs; the cost is determined based on the cash payment actually paid by the Group, the fair value of the equity securities issued by the Group, value as specified in the investment contract or agreement, the fair value or the original book value of the assets surrendered in process of non-monetary asset exchange, its own fair value of the long term equity investment, etc. depending on the different ways of acquiring the long term equity investment. Investment costs include the expenses, taxes and other necessary expenditures directly connected with the acquisition of the long term equity investment.
(2) Follow-up Measurement and Gain and Loss Recognition
For a long term equity investment which does not have common control over or significant influence upon the investee and there is no quotation in the active market and the fair value cannot be reliably measured, the Company adopts the cost method for calculation. The long term investment which has
FIYTA Holdings Ltd. 2014 Semi-Annual Report common control over or significant influence upon the investee, the equity method is used for calculation. The long term equity investment which does not control or common control over or significant influence upon the investee while the fair value can be reliably measured can be used as the financial asset available for sale in calculation. In addition, for a long term equity investment in which the Company can exercise control over the investee, the Company adopts the cost method for accounting.
① Long term equity investment calculated based on the cost method
In accounting based on the cost method, the long term equity investment is priced based on the initial investment costs, except the amount actually paid at the time when the investment is acquired, or the cash dividend or profit already announced but not yet distributed involved in the consideration, the current return on investment is recognized based on the amount of the cash dividend or profit announced for distribution by the investee enjoyable by the Company as investor.
② Long term equity investment calculated based on the equity method
When the equity method is used for calculation, in case the initial investment cost of the long term equity investment is greater than the fair value of the recognizable net asset of the investee enjoyable, the initial investment cost of the long term equity investment shall not be adjusted.
If the equity method is used for calculation, the current investment gain/loss is the share of the net gain/loss realized in the very year by the investee enjoyable or shareable. In confirming the share of the net gain and loss enjoyable in the investee, the Group takes the fair value of various recognizable assets of the investee at the time of obtaining the investment, and recognizes it after adjustment of the net profit of investee according to the accounting policy of the Group and during the fiscal period. The part of the inside transaction gain and loss unrealized between the Group, the associates and joint ventures attributable to the Group is calculated based on the shareholding proportion and is offset and the investment gain and loss are recognized on this basis. However, the inside transaction loss unrealized incurred to the Group and the investee shall not be offset if it belongs to the loss from impairment of the assets as assigned according to the Enterprise Accounting Standards No. 8– Impairment of Assets. For other comprehensive income of the investeess, the book value of the long term equity investment is adjusted correspondingly and is recognized as other comprehensive income and recorded in the capital reserve.
In recognizing the net loss shareable incurred to the investee, the book value of the long term equity investment and the other long term equity which substantially composes the net investment in the investee is reduced to zero as the maximum. In addition, if the Group has the obligation for assuming extra loss incurred to the investee, the predicted liability is recognized based on the predicted obligation to be assumed and is charged to the current investment loss. In case of the net profit realized by the investee in the afterwards period, the Group shall restore the recognition of the share of profit enjoyable after the amount enjoyable has made up for the unrecognized loss.
③ Acquisition of the minority equity
In preparation of the consolidated financial statements, the difference between the long term equity investment newly increased by purchase of minority equity and the enjoyable share of asubsidiary’s net assets continuously calculated commencing from the date of purchase (or date of consolidation) based
FIYTA Holdings Ltd. 2014 Semi-Annual Report on the newly increased shareholding proportion is used to adjust the capital reserve; in case the capital reserve is not enough for writing-down, the retained earnings is adjusted.
④ Disposal of long-term equity investment
In a consolidated financial statement, the parent company has partially disposed the long term equity investment in its subsidiary without losing its control power, the difference between the disposal income of the amount enjoyable in thesubsidiary’s net assets corresponding to the long term equity investment disposed is counted to theowner’s equity. In case that the parent company has partially disposed the long term equity investment in its subsidiary has caused the parent company to have lost the control power over the subsidiary, it should be treated according to the accounting policy as specified in the “method for preparation of consolidated financial statements”. If a long term equity investment is disposed under other situation, for the equity disposed, the difference between its book value and the consideration actually obtained is counted to the current gains and losses. For the long term equity investment calculated based on the equity method, the other comprehensive income part which was originally counted to theowner’s equity is transferred to te current gains and losses according to the corresponding proportion. The remaining equity is recognized as long term equity investment or other relevant financial assets based on its book value and measured afterwards according to te aforesaid accounting policy concerning long term equity investment or financial assets. In case the remaining equity is calculated based the equity method instead of the cost method, retroactive adjustment is made according to the relevant provisions.
(3) Basis for determining the joint control over and significant influence upon the investee Control refers to the authority to decide the financial and operating policy of an enterprise according to which profit may be achieved from theenterprise’s operating activities. Joint control refers to common control over some economic activities according to the contract. Such control only exists when the investors unanimously approve the important finance in connection with such economic activity and control power necessary to be shared in operation decision-making. Significan influence is determined when the investor has the power in participating in decision making on theinvestee’s financial and operation policies but cannot control or jointly control with other party such decision making. Significant influence is determined when the investor has the power in participating in decision making on theinvestee’s financial and operation policies but cannot control or jointly control with other party such decision making. In determining if to implement control over or exert significant influence upon an investee, the potential voting elements, such as the current convertible debentures in the investee held by the investor and other parties, the warranty available for implementation in the current period, can be taken into consideration.
(4) Method for impairment testing and provision of reserve for impairment.
On every balance sheet day, the Group checks the long term equity investment and makes sure if there possibly exist any sign of impairment. In case there exists impairment in such assets, their recoverable amount is estimated. In case the recoverable amount of the asset is lower than its book value, provision
FIYTA Holdings Ltd. 2014 Semi-Annual Report for impairment of the asset is made based on its difference and is recorded in the current gain and loss. Loss from impairment of long term equity investment which once is confirmed shall not be reversed in the afterwards fiscal periods.
14. Investment based real estate
Investment based real estate refers to the real estate held by the Company which creates rental or added value of capital or both, including housing and building already let out.
Investment based real estate is initially measured according to the cost Investment based real estate is initially measured based on the cost. The follow-expenses in connection with the investment based real estate are recorded in the investment based real estate costs in case the relevant economic benefit may flow into the Company while the costs can be reliably measured. Other follow-up expenses are recorded in the current gain and loss at the time of incurrence.
The Group adopts the cost model to make follow-up measurement of the investment based real estate and makes depreciation or amortization according to the policy of coincidence with housing and building or land use right.
About the impairment test method and method for provision of reserve for impairment of the investment based real estate, refer to “Impairment of Non-current and Non-financial Assets”.
When the application of the investment based real estate is for self-use, the investment based real estate is transferred to fixed asset or intangible asset commencing from the date of change. When the application of the self-use real estate is changed into earning rental or increase of capital value, commencing from the date of change, the fixed asset or intangible asset are transferred into investment based real estate. When conversion takes place, for the investment based real estate measured by means of the cost module instead, the book value before conversion shall be taken as the entry value after the conversion; for the investment based real estate measured by means of fair value instead, the fair value as at the conversion date shall be taken as the entry value after conversion.
When the investment based real estate is disposed or permanently withdrawn from use and it is predicted that it is unable to earn economic benefit, the recognition of the investment based real estate is terminated. The income from disposal of investment based real estate, including sale, assignment, discarding or damage, is charged to the current gain and loss after deduction of the book value and the relevant taxes.
15. Fixed assets
(1) Conditions for Recognition of Fixed Assets
Fixed assets refer to tangible assets used for producing commodities, providing labor services, leasing, operation or management with service life exceeding one fiscal year.
FIYTA Holdings Ltd. 2014 Semi-Annual Report (2) Recognition basis and pricing method for the fixed assets rented on financing basis
Inapplicable
(3) Depreciation of Different Fixed Assets
Fixed assets are initially measured based on the costs with the influence from the predicted discarding expenses taken into consideration. Commencing from the next month after a fixed asset has reached the predicted usable status, the average service life method is used to provide depreciation within the service life. Service life, predicted net residual value (the predicted net residual value refers to the amount obtained by the Group from disposal of the asset after deduction of the predicted disposal costs after the predicted service life of an assumed fixed asset expires and is in the predicted status at the time of termination of the service life) and annual depreciation rate are as follows:
|||||
|-|-|-|-|
||Depreciation Life||Annual depreciation rate|
|Categories||Residual ratio (%)||
||(years)||(%)|
|Housing and buildings|20-35|5.00%|2.7-4.8|
|Machines & equipment|10|5.00%-10.00%|9-9.5|
|Electronic equipment|5|5.00%|19|
|Motor vehicles|5|5.00%|19|
|Other equipment|5|5.00%|19|

(4) Impairment test and provision for impairment of fixed assets
For the fixed assets, the Group makes judgment on whether there exists any sign of impairment on the balance sheet day. If there exists the sign of impairment, the recoverable amount is estimated and impairment test is conducted. For goodwill and intangible assets with the service life undetermined and intangible assets which has not year reached the usable status, regardless of whether there exists any sign of impairment, impairment test should be conducted every year.
In case impairment test result shows that the recoverable amount of asset is lower than the book value, provision for impairment is made based on the difference and is regarded in the loss for impairment. The recoverable amount is determined based on the higher of the net amount of the fair value of the asset less the expense of disposal and the present value of the predicted future cash flow of the asset. The fair value of assets is determined based on the sales agreement price in fair transaction; in case there is no sales agreement but does exist active market of asset, the fair value is determined according to thebuyer’s offer of the asset; in case there exists neither sales agreement nor active market of asset, the fair value of assets is estimated based on the best information obtainable. The disposal expenses include legal expenses, relevant taxes, handling fee and direct expenses incurred before the asset reaches the sellable status in connection with disposal of the assets. The present value the predicted future cash flow of assets: according to the predicted future cash flow created in process of continuous application and final disposal, choose the proper discount rate to determine the amount after discount.
Provision for impairment of asset is calculated and recognized based on the individual asset. In case it is
difficult to make estimation of the recoverable amount of individual asset, the recoverable amount of
FIYTA Holdings Ltd. 2014 Semi-Annual Report asset group is determined based on the asset group which the asset belongs to. The asset group is the minimum grouping of assets which can independently produce cash flow in.
The loss from impairment of the aforesaid assets, once determined, shall be the part of recovery with the value unreversable in future periods.
(5) Other Notes
The follow-up expenses in connection with fixed assets are recorded in the costs of fixed assets if the economic benefit in connection with the fixed assets can highly probably flow into while the costs can be reliably measured and the book value of the part replaced is terminated for recognition. Besides, other follow-up expenses are recorded in the current gain and loss at the time of incurrence.
Income from disposal of fixed assets, including sales, assignment, scrapping, or impairment, is counted to the current gain and loss after deduction of its book value and relevant taxes.
The Group rechecks the service life, predicted net residual value and depreciation method of fixed assets at least once at the end of a year; in case any change takes place, it is taken as change in accounting estimation.
16. Construction in process
(1) Classification of construction in process
The cost of construction-in-process is determined based on the actual expenditures of the project, including various engineering expenses incurred during the construction period and other relevant expenses, etc. The construction in progress is transferred into the fixed assets after the works has reached the predicted usable status.
(2) Standard and Time of Conversion of Construction-in-progress into Fixed Asset
The cost of construction-in-process is determined based on the actual expenditures of the project, including various engineering expenses incurred during the construction period and other relevant expenses, etc. The construction in progress is transferred into the fixed assets after the works has reached the predicted usable status.
(3) Impairment Test Method for Construction-in-Progress and Provision for Impairment
The Group makes judgment on whether there exists any impairment sign on the balance sheet day. If there exists the sign of impairment, the recoverable amount is estimated and impairment test is conducted.
In case impairment test result shows that the recoverable amount of asset is lower than the book value, provision for impairment is made based on the difference and is regarded in the loss for impairment. The recoverable amount is determined based on the higher of the net amount of the fair value of the asset
FIYTA Holdings Ltd. 2014 Semi-Annual Report less the expense of disposal and the present value of the predicted future cash flow of the asset. The fair value of assets is determined based on the sales agreement price in fair transaction; in case there is no sales agreement but does exist active market of asset, the fair value is determined according to thebuyer’s offer of the asset; in case there exists neither sales agreement nor active market of asset, the fair value of assets is estimated based on the best information obtainable. The disposal expenses include legal expenses, relevant taxes, handling fee and direct expenses incurred before the asset reaches the sellable status in connection with disposal of the assets. The present value the predicted future cash flow of assets: according to the predicted future cash flow created in process of continuous application and final disposal, choose the proper discount rate to determine the amount after discount. Provision for impairment of asset is calculated and recognized based on the individual asset. In case it is difficult to make estimation of the recoverable amount of individual asset, the recoverable amount of asset group is determined based on the asset group which the asset belongs to. The asset group is the minimum grouping of assets which can independently produce cash flow in.
The loss from impairment of the aforesaid assets, once determined, shall be the part of recovery with the value unreversable in future periods.
17. Loan expenses
(1) Capitalization of borrowing costs
Loan expenses include the interest and additional expenses incurred by loans, and the exchange difference incurred by foreign exchange loan. The loan expenses for purchase, construction or production of the assets directly attributable to those in compliance with capitalization conditions start to be capitalized when the asset expenditure has already incurred, loan expenses have incurred and purchase, construction or production activities necessary for enabling the assets to reach the predicted usable or sellable status have already started. When the assets purchased/constructed or produced in compliance with capitalization conditions reach the predicted usable or sellable status, the capitalization of the loan expenses shall stop. The other loan expenses are recognized as expenses in the very period of incurrence.
(2) Duration of loan expense capitalization
The Group starts capitalization of the loan expenses when all the following conditions have been satisfied:① Asset expenditure has incurred. Asset expenditure includes the cash paid for purchase/construction or production of an asset, transfer of a non-cash asset or expense incurred in formation of an interest-bearing liability which all comply with the conditions for capitalization.② Borrowing expenses have already incurred;③ the purchase or production activity necessary for the asset to reach the predicted usable or sellable status have already started.
(3) Capitalization suspension period
The Group suspends the capitalization of loan expenses when an asset in compliance with the conditions for capitalization has experienced abnormal interruption in process of purchase/construction or production while the interruption exceeds three months. The loan expenses incurred during the
FIYTA Holdings Ltd. 2014 Semi-Annual Report suspension period is recognized as the cost and counted to the current gain and loss until the purchase/construction or production activity restarts.
(4) Calculation of the amount of loan expense capitalized
The Group determines the capitalization amount according to the following provisions for the interest of each fiscal period (including discount or amortization of premium):
① For the special purpose loan for purchase/construction or production of an asset which satisfies the capitalization conditions, the amount is determined with the interest expense of the special loan actually incurred during the very period less the interest income of the unused part of the loan deposited with bank as received or the return on investment earned from the provisional investment with the unused part of the loan.
A special purpose loan refers to a loan borrowed exclusively for purchase/construction or production of an asset which satisfies the capitalization conditions.
② In case a general loan has been occupied for purchase/construction or production of an asset which satisfies the capitalization conditions, the interest amount of the general loan which should be capitalized is determined based on the weighted average of the asset expenditure for the amount of the accumulative asset expenditure exceeding the part of the special purpose loan multiplied by the capitalization rate of a general loan as occupied. The capitalization rate should be determined according to the weighted average interest rate of a general loan.
Capitalization duration refers to the period from the time point of starting capitalization of loan expense to the time point of ending the capitalization with the duration of suspension of the capitalization of loan expense exclusive.
18. Biological assets
Inapplicable
19. Oil and gas assets
Inapplicable
20. Intangible Assets
(1) Pricing of intangible assets
An intangible asset refers to a recognizable non-monetary asset without physical form possessed by or under the control of the Group.
Intangible assets are initially measured based on the cost. All expenses in connection with the intangible assets are charged to the costs of intangible assets if the relevant economic benefit can flow into the
FIYTA Holdings Ltd. 2014 Semi-Annual Report Group and the costs can be reliably measured. All the expenses of other items except that are charged to the current gain and loss at the time of incurrence.
The land use right acquired is usually calculated as intangible asset. For the buildings, such as factory building, constructed independently, the expenses in connection with the land use right and the construction cost of such building are calculated as intangible asset and fixed assets. For purchased housing and buildings, the relevant costs are distributed between the land use right and buildings; in case it is difficult to distribution rationally, they shall all be handled as fixed assets.
An intangible asset with limited service life is amortized in average by using the straight-line method over the predicted service life with its original value less the predicted residual value and the accumulated amount of the reserve for impairment already provided commencing from the time of availability for use. The intangible asset with unidentified service life would not be amortized.
At the end of a year, the Group rechecks the service life of the intangible asset and the amortization method. The change incurred is treated as change of accounting estimation. In addition, the service life of intangible asset with indefinite service life is rechecked. If there is evidence showing that the duration of the economic benefit brought about by the intangible asset for the enterprise is foreseeable, the estimated service life is amortized according to the amortization policy of intangible assets with limited service life.
Expenses at the research stage is counted to the current gains and losses at the time of incurrence. The expenses at the development stage which can satisfy the following conditions at the same time are recognized as intangible asset and that which cannot satisfy the following conditions are recorded in the current gain and loss at the development stage:
① It is technically feasible to finish such intangible assets so as to make it useable or sellable;
② Having the intention to finish, use or sell such intangible assets;
③ The ways of intangible assets to produce economic benefit, including being able to prove that there exists market for the products produced by using such intangible assets or there exists market for intangible asset itself; in case intangible asset shall be used internally, it can be proved useful.
④ There is sufficient support in terms of technology, financial resource and other resources so as to fulfil the development of intangible asset and have the ability to use or sell such intangible assets;
⑤ The expenses attributable to the development stage of such intangible assets can be reliably measured.
In case it is impossible to distinguish the expenses at the research stage from that at the development stage, the R& D expenses incurred shall all be recorded in the current gain and loss.
FIYTA Holdings Ltd. 2014 Semi-Annual Report (2) Estimate of service life of the intangible asset with limited service life
An intangible asset with limited service life is amortized in average by using the straight-line method over the predicted service life with its original value less the predicted residual value and the accumulated amount of the reserve for impairment already provided commencing from the time of availability for use. The intangible asset with unidentified service life would not be amortized.
At the end of a year, the Group rechecks the service life of the intangible asset and the amortization method. The change incurred is treated as change of accounting estimation. In addition, the service life of intangible asset with indefinite service life is rechecked. If there is evidence showing that the duration of the economic benefit brought about by the intangible asset for the enterprise is foreseeable, the estimated service life is amortized according to the amortization policy of intangible assets with limited service life.
(3) For an intangible asset originated from the contractual rights or other legal rights, its service life does not exceed the time limit of the contractual rights or other legal rights; if the contractual rights or other legal rights can be extended due to renewal of the contract upon expiry while there is evidence showing that contract renewal for the enterprise does not need payment of big costs, the contract renewal period should be counted to the service life. In case there is no service life specified in the contract or any law, relevant experts should be engaged for verification with consideration of various conditions in a comprehensive way, or it is necessary to make comparison with the conditions of the enterprises of the same industry; and determine the time limit of the intangible asset which may bring about future economy to the Company.
Basis for judgment of intangible assets with indefinite service life
The Group regards an intangible asset unforeseeable to bring about future economic benefit to the Company in future as an intangible assert with indefinite service life.
(4) Provision for impairment of intangible assets
The Group makes judgment on whether there exists any impairment sign on the balance sheet day. If there exists the sign of impairment, the recoverable amount is estimated and impairment test is conducted.
In case impairment test result shows that the recoverable amount of asset is lower than the book value, provision for impairment is made based on the difference and is regarded in the loss for impairment. The recoverable amount is determined based on the higher of the net amount of the fair value of the asset less the expense of disposal and the present value of the predicted future cash flow of the asset. The fair value of assets is determined based on the sales agreement price in fair transaction; in case there is no sales agreement but does exist active market of asset, the fair value is determined according to thebuyer’s offer of the asset; in case there exists neither sales agreement nor active market of asset, the fair value of assets is estimated based on the best information obtainable. The disposal expenses
include legal expenses, relevant taxes, handling fee and direct expenses incurred before the asset
FIYTA Holdings Ltd. 2014 Semi-Annual Report reaches the sellable status in connection with disposal of the assets. The present value the predicted future cash flow of assets: according to the predicted future cash flow created in process of continuous application and final disposal, choose the proper discount rate to determine the amount after discount. Provision for impairment of asset is calculated and recognized based on the individual asset. In case it is difficult to make estimation of the recoverable amount of individual asset, the recoverable amount of asset group is determined based on the asset group which the asset belongs to. The asset group is the minimum grouping of assets which can independently produce cash flow in.
The loss from impairment of the aforesaid assets, once determined, shall be the part of recovery with the value unreversable in future periods.
(5) Specific criteria for division between the research stage and development stage of theCompany’s internal R& D projects
The expenditures for theCompany’s internal research and development projects are divided into expenditure of research stage and that of development stage.
(6) Accounting of expenditure for internal R& D projects
Expenses at the research stage is counted to the current gains and losses at the time of incurrence. The expenses at the development stage which can satisfy the following conditions at the same time are recognized as intangible asset and that which cannot satisfy the following conditions are recorded in the current gain and loss at the development stage:
① It is technically feasible to finish such intangible assets so as to make it useable or sellable;
② Having the intention to finish, use or sell such intangible assets;
③ The ways of intangible assets to produce economic benefit, including being able to prove that there exists market for the products produced by using such intangible assets or there exists market for intangible asset itself; in case intangible asset shall be used internally, it can be proved useful.
④ There is sufficient support in terms of technology, financial resource and other resources so as to fulfil the development of intangible asset and have the ability to use or sell such intangible assets;
⑤ The expenses attributable to the development stage of such intangible assets can be reliably measured.
In case it is impossible to distinguish the expenses at the research stage from that at the development stage, the R& D expenses incurred shall all be recorded in the current gain and loss.
21. Long-term expenses to be proportioned
Long-term expenses to be apportioned are various expenses already incurred but to be borne in the reporting period and future periods with apportioning term of over one year. Long-term expenses to be apportioned are amortized based on the straight-line method over the predicted beneficial period and the amortization term is usually 2– 5 years.
FIYTA Holdings Ltd. 2014 Semi-Annual Report 22. Assignment of the assets with buy-back conditions
Inapplicable
23. Predicted liabilities
(1) Criteria for recognizing the predicted liabilities
Predicted liabilities shall be recognized when the obligation in connection with the contingent events complies with the following conditions: (1) such an obligation is a current one the Company should assume; (2) implementation of such obligation may possibly cause flow-out of economic benefit ; (3) The amount involved in such obligation can be reliably measured.
(2) Measurement of Predicted Liabilities
On the balance sheet day, with consideration of the risks in connection with the contingent matters, uncertainty, time value of currency, etc., the predicted liabilities are measured according to the best estimated amount payable in implementation of the present obligations.
In case the predicted liabilities payable should completely or partially be compensated by a third party or other party, while the amount of compensation can be basically confirmed receivable, it should be individually recognized as assets. However, the amount of compensation as recognized should not exceed the par value of the liabilities as recognized.
24. Share payment and equity instrument
(1) Types of share payment
Inapplicable
(2) Determination of the fair value of equity instrument
Inapplicable
(3) Basis for determining the best estimate of executable equity instrument
Inapplicable
(4) Accounting treatment in connection with implementation, amendment and/or termination of a share payment plan
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report 25. Repurchasing theCompany’s shares
Inapplicable
26. Revenues
(1) Specific judgment criteria for the time of recognizing the revenue from sales of goods Sales income is recognized when the major risk and remuneration involved in the ownership of goods have been transferred to the buyer, with neither the successive management power general in connection with the ownership retained nor effective control over the goods already solve; the income amount may be reliably measured, the relevant economic benefit may flow into the enterprise; the relevant costs incurred or to incur can be reliably measured.
(2) Basis for recognition of Income from use right of the assigned asset
(1) Royalty Income
The income is recognized based on accrual basis according to the relevant contract or agreement. (2) Interest income
Interest income is determined according to the time the borrowers using theGroup’s monetary fund and the actual interest rate.
(3) Income from properties
The amount of income from lease of properties is determined on the lease date as specified in the lease contract or agreement (rental-free period should be taken into consideration if there is rental-free period) and the amount of rental and the income from the properties leased is recognized when the concerned rental or the evidence of receipt has been received.
(3) Basis for recognition of labor service income
The results of labor service transactions offered on the balance sheet date can be reliably estimated, the labor service income is recognized based on the percentage of the work completed. The completion progress of labor service transaction is determined based on the proportion of the labor service already provided in the total labor service volume.
Reliable measurement of the result of the labor service transaction provided refers to that it can satisfy at the same time:① the amount of the income can be reliably measured;② the concerned economic benefit may highly possibly flow into the Company;③ the completion of the transaction can be reliably determined;④ the costs incurred or to incur can be reliably measured.
In case the result of a labor service transaction cannot be reliably measured, the labor service income is recognized based on the labor cost which has incurred and is predicted to be compensable and the labor service cost already incurred is taken as the current expenses. The labor cost already incurred shall not
FIYTA Holdings Ltd. 2014 Semi-Annual Report be recognized as income if it is predicted to be impossible to be compensated.
(4) Basis and method for determining the contract completion progress when the income from labor services and income from construction contract based on percentage-of-completion method
The Group determines the contract completion progress according to the following provisions:① proportion of the contract cost actually incurred accumulatively in the total predicted costs of the contract;② proportion of the contract work volume completed already in the total predicted work volume of the contract;③ when it is impossible to determine the contract completion progress according to the aforesaid two ways, a professional should be engaged for scientific determination on site to determine the actual completion progress.
27. Government subsidy
(1) Types
Government subsidy refers to monetary asset or non-monetary asst obtained from the government free of charge but does not include the capital invested by the government as theCompany’s owner. The government subsidy can be divided into the government subsidy in connection with asset and government subsidy in connection with income.
(2) Accounting Policy
The governmental subsidy is measured based on the amount received or receivable if it is monetary asset. The government subsidy is measured based on the fair value if it is a non-monetary asset; when the fair value cannot be obtained, it is measured based on the nominated amount. The government subsidy measured based on the nominal amount is directly recorded in the current gain and loss. Asset related governmental subsidy is recognized as deferred income, is distributed in average over the service life of the related assets and recorded in the current gain and loss. The government subsidy in connection with income is recognized as deferred income if it is used for compensating theCompany’s relevant expenses or losses in the afterward term and is charged to the current gain and loss during the recognition of the relevant expenses; or directly charged to the current gain and loss if it is used for compensating the relevant expenses or losses already incurred in the Company.
When the recognized government subsidy needs to be returned, if there exists the relevant deferred income balance, the book balance of the deferred income should be written-down and the excessive part is recorded in the current gain and loss; if there exists no relevant deferred gain and loss, it is directly recorded in the current gain and loss.
FIYTA Holdings Ltd. 2014 Semi-Annual Report 28. Deferred income tax asset and deferred income tax liability
(1) Basis for recognition of deferred income tax assets
For the Offsettable provisional difference in connection with the initial recognition of the asset or liability arising from the transaction which is neither enterprise consolidation nor may influence the accounting profit and taxable income amount (or can be used to offset loss), the pertinent deferred income tax asset shall not be recognized. In addition, for the Offsettable provisional difference in connection with investment in subsidiary, associate and joint venture, if the provisional difference may not possibly be reservable in the foreseeable future or cannot be possibly obtained and used for offsetting the taxable income amount of the provisional difference in future, the pertinent deferred income tax asset shall not be recognized. Except the aforesaid exceptional case, the Group recognizes the deferred income tax asset arising from the other Offsettable provisional difference within the limit of the taxable income amount which can be used to offset the Offsettable provisional difference.
For the Offsettable loss and tax credit in the years after carry-forward, the pertinent deferred income tax asset is recognized within the limit of the future taxable income amount whch may possibly be used for offsetting the Offsettable loss and tax credit. On the balance sheet day, the deferred income tax asset and deferred income tax liability are measured based on the applicable tax rate during the period of predicted recovery of such asset or discharge of the liabilities according to the tax law.
On the balance sheet day, the book value of the deferred income tax asset is rechecked. In case it is highly impossible to get enough taxable income amount to offset the interest of the deferred income tax asset in the future period, the book value of the deferred income tax assets is deduced. When it is highly possible to get enough taxable income amount, the deducted amount is reversed.
(2) Basis for recognition of deferred income tax liabilities
For the provisional difference of payable taxes in connection with the initial recognition of goodwill and in connection with the initial recognition of assets or liabilities arising from the transactions which are neither enterprise consolidation and nor influence the accounting profit and taxable income amount (or can be used to offset loss) at the time of incurrence, the pertinent deferred income tax liability shall not be recognized. In addition, for the taxable provisional difference in connection with investment in subsidiaries, associates and joint ventures, if the Group can control the time of provisional difference reversal while such provisional difference may not be possibly reversed in the foreseeable future, the pertinent deferred income tax liability shall not be recognized either. Except the aforesaid exceptional case, the Group recognizes the deferred income tax liability arising from the provisional difference of all other payable taxes.
28. Operating Lease and Financing Lease
(1) Accounting process for operating lease
Financing lease is actually the lease in which all the risks and remuneration in connection with the
FIYTA Holdings Ltd. 2014 Semi-Annual Report ownership of the asset has been transferred and whose ownership may be either eventually transferred or possibly not transferred. Operating lease refers to the leases other than financing lease. TheGroup’s leases refer to the operational lease.
① The Group records the operational lease business as the tenant
Rental payment of operational lease is recorded in the relevant asset cost or current gain and loss based on the straight line method over various fiscal periods within the lease term. The initial direct expense is recorded in the current gain and loss. Contingent rental is recorded in the current gain and loss when it actually incurs.
② The Group records the operational lease business as the lessor
The rental income of the operational lease is recorded in the current gain and loss according to the straight line method in different periods within the lease term. The initial direct expense with bigger amount is capitalized at the time of incurrence and is recorded in the current gain and loss periodically according to the same base in recognizing the rental income during the lease term; other initial direct expense with smaller amount is recorded in the current gain and loss at the time of incurrence. Contingent rental is recorded in the current gain and loss when it actually incurs.
(2) Accounting process for financing lease
Inapplicable
(3) Accounting process for sale and leaseback
Inapplicable
30. Assets for sale held by the Company
(1) Criteria for recognizing the assets held for sale
Inapplicable
(2) Accounting process for the assets held for sale
Inapplicable
31. Asset securitization business
Inapplicable
32. Hedging Accounting
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report 33. Change in the Principal Accounting Policy and Accounting Estimates
Inapplicable
(1) Change of the accounting policy
Inapplicable
(2) Change of the accounting estimates
Inapplicable
34. Correction of previous accounting errors
Inapplicable
35. Other Principal Accounting Policies, Accounting Estimates and Preparation of the Consolidated Financial Statements
Major Accounting Judgment and Estimation
In process of applying the accounting policy, due to the inherent uncertainty of the operating activities, the Group needs to make judgment, estimation and assumption of the book value of the items in the statements which cannot be accurately measured. These judgment, estimation and assumption are made based on the past experience of theGroup’s management with consideration of other correlative factors. These judgment, estimation and assumption may influence the reported amount of income, expenses, assets and liabilities and disclosure of the contingent liabilities on the balance sheet day. However, the result which causes uncertainty of these estimates may possibly result in significant adjustment which may influence the book amount of the assets or liabilities in future.
The Group makes regular recheck of the aforesaid judgment, estimation and assumption on the basis of continuous operation. In case the change of the accounting estate only influences the very period of change, the amount influenced is recognized in the very period of change; in case the change of the accounting estimate not only influences the very period of change but also the future period, the amount influenced is recognized in the very period of change and the future period.
The important fields in which the Group needs to make judgment, estimation and assumption on the amount of the items of the financial statements as at the balance sheet day are as follows:
(1) Provision for bad debts
The Group checks the loss from bad debts by using the allowance method according to the accounting policy for accounts receivable. Impairment of the accounts receivable is based on assessment of the recoverability of accounts receivable. Identification of the impairment of the accounts receivable requires themanagement’s judgment and estimation. The discrepancy between the actual result and the previous estimation shall affect the book value of the accounts receivable or provision or reversal of the reserve for bad debt of accounts receivable at the time of estimated change.
FIYTA Holdings Ltd. 2014 Semi-Annual Report (2) Provision for price falling of famous brand watches
As to famous brand watches for distribution with stock age of over three years, in themanagement’s opinion, as their prices tends to rise, they enjoy good sales prospect. The management makes overall recheck of the salability and the net realizable value of such famous brand watches. In themanagement’s opinion, even though the stock age of such watches increases, their value can be entirely recoverable. In case there is sign showing that the net realizable value of such famous brand watches is lower than their book value, the Group shall make adjustment during the period when such sign takes place. Since impairment of such famous brand watches requires the management to obtain concrete evidence, judgment and estimation shall be made based on taking into consideration such elements as the purpose for holding the famous brand watches, influence of the events after the balance sheet day, etc. The discrepancy between the actual result and the originally estimated shall influence the provision or reversal of the value of inventories and reserve for price falling of inventories during the changed period.
In the opinion of theGroup’s management, the provision for price falling of the aforesaid famous brand watches and the recheck method are proper.
(3) Reserve for impairment of the non-financial non-current assets
On the balance sheet day, the Group judges whether there may possibly exist any sign of possible impairment of the non-current assets other than financial assets. For the intangible assets with uncertain service life, except the impairment test conducted each year, when there exists any sign of impairment, impairment test is also conducted. For the non-current assets other than financial assets, when there exists sign showing that its book amount is unrecoverable, impairment test is conducted.
When the book value of assets or asset group is higher than the recoverable amount, i.e. the higher of the net amount of the fair value less the disposal expenses and the present value of the predicted future cash flow, it shows that impairment has incurred.
The net amount of the fair value less the disposal expenses is determined with reference to the sales agreement price of the similar assets in fair transaction or the observable market price less the incremental cost directly attributable to disposal of the assets.
In prediction of the present value of future cash flow, it is necessary to make significant judgment on the output, sales price, the relevant operation costs of the asset (or asset group) and the used discount rate in calculating the present value, etc. The Group may use the accessible relevant information in estimating the recoverable amount, including the prediction of the relevant output, sales price and relevant operation costs according to the reasonable and supportable assumption.
The Group tests the goodwill to determine whether impairment takes place at least every year. This demands prediction of the present value of the future cash flow of the assets or combination of asset groups with the goodwill distributed. When prediction is made on the present value of the future cash flow, the Group needs to predict the cash flow produced by the future asset groups or combination of the asset groups; meanwhile proper discount rate is chosen to determine the present value of future cash
FIYTA Holdings Ltd. 2014 Semi-Annual Report flow.
(4) Depreciation and Amortization
The Group provides depreciation and makes amortization of the investment based real estate, fixed assets and intangible assets based on the straight line method within the service life with their residual value taken into consideration. The Group rechecks the service life regularly to determine the amount to be recorded in the depreciation and amortization expenses of each report period. The service life is determined by the Group according to the past experience on the similar assets with combination of the updating of the predicted technology. If great change has taken place in the previous estimation, the depreciation and amortization expenses are adjusted during the future period.
(5) Asset of deferred income tax
Within the limit that there is possibility to have enough taxable profit to offset the loss, it is necessary for the Group to recognize all the unused taxation loss as deferred income tax asset. This demands theGroup’s management to use a lot of judgment to estimate the time when the future taxable profit may take place and the amount and decide the amount of the deferred income tax asset necessary to be determined with combination of taxation planning strategy.
(6) Income tax
In normal operating activities, there exists a certain uncertainty in final tax treatment and calculation in partial transactions in the Group; whether partial items are necessary to be approved by the tax collection authority for payment before tax. If there exists discrepancy between the final certification result of these tax affairs and the initially estimated amount, such discrepancy shall produce influence upon the income tax and deferred income tax of the very period during the final certification.
(8) After-sale Warranty
The Group is liable for the quality warranty for the commodities sold out and responsible for compensation for the quality damage arising from the quality defect of the goods, including repairing, replacement, etc. The Group makes estimation of and provides corresponding reserve for the after-sale quality repairing commitments offered to the customers for the sold and repairing of the sold commodities. Such contingent matters have formed a present obligation while implementation of such present obligation may possibly cause the economic benefit to flow out of the Group; the Group recognizes the best estimate necessary to be paid in implementing the present obligations for the contingent matters. On the contrary, when such matter has not yet formed a present obligation, the Group does not need to make prediction. In process of making judgment, the Group needs to consider the data of theGroup’s recent repairing experience. However, the recent repairing experience may not possibly reflect the futre repairing conditions. Any increase or decrease of the reserve may all possibly influence the gain and loss of future years.
V. Taxes
1. Main taxes and tax rates applicable to the Company
||||
|-|-|-|
|Taxes|Basis for taxation|Tax rate|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
||The Company and its domestic||
||subsidiaries are general VAT||
||payers and the taxable VAT is||
|Value-added tax||17%|
||the balance of the current||
||output VAT less the Offsettable||
||input VAT.||
||For the imported or self-made||
||high-grade watches, the||
||Company and its domestic||
|Consumption tax||20%|
||subsidiaries pay consumption||
||tax based on 20% of the||
||taxation base.||
||The Company and its||
||subsidiaries pay business tax||
||for the housing rental income,||
|Business tax|income from offering labor|5%|
||service and the income from||
||use of the assigned assets at||
||rate of 5%||
|Urban maintenance and construction|7% of the turnover tax actually||
|||7%|
|tax|paid||
|Enterprise income tax|Taxable amount of income|15%-30%|
||The educational surtax is based||
||on 3% of the turnover tax||
||actually paid; the local||
|Educational surtax and local|||
||educational surcharges is|2% and 3%|
|educational surcharges|||
||based on 2% of the turnover tax||
||actually paid.||
||For the housing leased by a||
||production and operation unit,||
||the property tax is calculated||
||based on 70% of the cost of the||
||property with the tax rate of||
||1.2%. The Group pays the||
|Property tax|property tax for its property|1.2%|
||located in Shenzhen based on||
||the tax rate as specified in the||
||said notice; and pays the||
||property tax for its properties||
||located in other cities according||
||to the local regulations.||

Enterprise income tax
FIYTA Holdings Ltd. 2014 Semi-Annual Report The Company and its Subsidiaries Income tax Income tax rate of the current rate of the
year previous year
The Company（Note①②⑤） 25% 25%
HARMONY（Note①⑤） 25% 25%
Shenzhen FIYTA Sophisticated Timepieces 15% 15%
Manufacture Co.,Ltd.（FIYTAManufacture.）（Note②③）
FIYTA Hong Kong Limited（Note④） 16.5% 16.5%
68-StationLimited（Note④） 16.5% 16.5%
LIANGYA（Note④） 16.5% 16.5%
BAODING（Note④） 16.5% 16.5%
World WatchesInternational（Note④） 16.5% 16.5%
Shenzhen FIYTA Technology Development Co., Ltd. 15% 25%
（FIYTATechnology）（Note②③）
Shenzhen Symphony Trading Co.,Ltd.（TradingCo.） 25% 25%
（Note⑤）
Beijing Henglianda Timepieces Co., Ltd.(Henglianda) 25% 25%
（Note⑤）
Kunming Lishan Department Store Co., Ltd. (Lishan 25% 25%
Department Store)（Note⑤）
Harbin World Watches Distribution Co., Ltd.（Harbin 25% 25%
Co. )（Note⑤）
Shenzhen Harmony Culture Communication Co., Ltd. 25% 25%
（Culture Co.)（Note⑤）
Emile Chouriet (Shenzhen) Co., Ltd.(Emile Chouriet 25% 25%
Shenzhen)（Note⑤）
FIYTA Sales Co.,Ltd.（FIYTASales）（Note①⑤） 25% 25%
Liaoning Hengdarui Commercial& Trade Co., Ltd. 25% 25%
（Hengdarui）（Note⑤）
The SwissCompany（Note⑥） 30% 30%
2. Preferential Tax Policies and Approval Documents
Note①: In accordance with the Provisional Measures for Administration of Collection of Aggregate Revenue of Income Tax of Cross-Regional Enterprises, the head office of the Company and its subsidiaries, the head office of HARMONY and its subsidiaries started implementation of the method of aggregate revenue of enterprise income tax featuring “unified calculation, level-to-level administration, insitu prepayment, aggregative clearing, and financial transfer”. The Company andHARMONY’s subsidiaries prepay their enterprise income tax based on50% of the payable income tax locally and theCompany’s head office and HARMONY head office make final settlement for another50% with
FIYTA Holdings Ltd. 2014 Semi-Annual Report Shenzhen Municipal Office of SAT;
Note②: In accordance with the Circular of the State Administration of Taxation on Issuing the Measures on Administration of Pre-tax Deduction of the Enterprise Research and Development Budget (Trial) GUO SHUI FA[2008] No. 116, theCompany’s and the FIYTAManufacture’s research and development budget for developing new technology, new products and new process may enjoy50% additional deduction as research and development budget in addition to deduction based on actual incurrence according to the provisions concerned if such budget has not formed intangible asset which should be charged to the current gain and loss.
Note③: In accordance with the Circular of Nanshan District Local Taxation Bureau, Shenzhen on Tax Affairs SHEN DI SHUI NAN BEI ZI[2012] No. 786, the company submitted application for “Advanced and new technology enterprises in areas where special regional policies of the State Council are implemented may be entitled to enterprise income tax incentives” and Nanshan District Local Taxation Bureau, Shenzhen completed filing and registration on April 10, 2012;
Note④: Such companies are registered in Hong Kong and apply the profit tax in Hong Kong with applicable tax rate of16.50%;
Note⑤: In accordance with the Enterprise Income Law of thePeople’s Republic of China, the resident enterprise income tax rate as at January 1, 2008 was25%;
Note⑥: The registration place of the Swiss Company is Switzerland, and the applicable tax rate of the registration place applies. The applicable rate in the current year is30%.
3. Other Notes
Inapplicable
VI. Enterprise Consolidation and Consolidated Financial Statements
1. About subsidiaries
(1) Subsidiaries acquired by means of establishment or investment
In CNY
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Actual|Balance of|||||Amount in|Balance|
||||||||||Are the||||
||||||investment|other items|Shareholdin|Proportion of||Minority|the minority|of the|
|Subsidiary|Place of|Business|Registered|Business|||||statements||||
||||||at the end of|which|g proportion|voting power||shareholder|shareholder|owner’s|
|type|Registration|type|Capital|Scope|||||consolidated||||
||||||the reporting|substantially|(%)|(%)||s’ equity|s’ equity|equity of the|
||||||||||(Y/N)||||
||||||period|composes|||||used for|parent|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||net|||||offsetting|company|
||||||||investment|||||minority|offsetting the|
||||||||in the|||||shareholder|loss shared|
||||||||subsidiary|||||s’ gain and|by minority|
|||||||||||||loss|shareholder|
||||||||||||||s in the|
||||||||||||||reporting|
||||||||||||||period|
||||||||||||||exceeding|
||||||||||||||the share|
||||||||||||||enjoyed in|
||||||||||||||the owner’s|
||||||||||||||equity at|
||||||||||||||year|
||||||||||||||beginning|
||||||Purchase|||||||||
||||||and sales of|||||||||
||||||watches and|||||||||
||Controlled|||600,000,000||601,307,200||||||||
|HARMONY||Shenzhen|Commerce||spares and||0.00|100.00%|100.00%|Yes|0.00|0.00|0.00|
||by stock|||.00(CNY)||.00||||||||
||||||parts,|||||||||
||||||repairing|||||||||
||||||service|||||||||
||||||Producing|||||||||
||||||various|||||||||
||||||watches and|||||||||
||||||movements,|||||||||
|FIYTA||||||||||||||
||Controlled|||10,000,000.|spares and|10,000,000.||||||||
|Manufacture||Shenzhen|Manufacture||||0.00|100.00%|100.00%|Yes|0.00|0.00|0.00|
||by stock|||00(CNY)|parts,|00||||||||
|.||||||||||||||
||||||sophisticate|||||||||
||||||d watches|||||||||
||||||and repair|||||||||
||||||service|||||||||
|FIYTA Hong||||||||||||||
||Controlled|||65,060,000.|Trade and|55,367,520.||||||||
|Kong||Hong Kong|Commerce||||0.00|100.00%|100.00%|Yes|0.00|0.00|0.00|
||by stock|||00(HKD)|investment|00||||||||
|Limited||||||||||||||
||||||Sales of|||||||||
|68-Station|Controlled|||7,800,000.0|watches,|4,107,924.0|||||1,091,941.1|||
|||Hong Kong|Commerce||||0.00|60.00%|60.00%|Yes||0.00|0.00|
|Limited|by stock|||0(HKD)|domestic|0|||||8|||
||||||trade|||||||||
||||||Purchase|||||||||
||Controlled|||500,000.00(|and sales of|||||||||
|Harbin Co.||Harbin|Commerce|||500,000.00|0.00|100.00%|100.00%|Yes|0.00|0.00|0.00|
||by stock|||CNY)|watches and|||||||||
||||||parts;|||||||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||watches|||||||||
||||||repairing.|||||||||
||||||sales of|||||||||
||||||watches and|||||||||
||Controlled|||30,000,000.||31,300,000.||||||||
|Henglianda||Beijing|Commerce||components||0.00|100.00%|100.00%|Yes|0.00|0.00|0.00|
||by stock|||00(CNY)||00||||||||
||||||, repairing|||||||||
||||||services|||||||||
||||||R & D,|||||||||
||||||production|||||||||
||||||and sales of|||||||||
||||||watches,|||||||||
||||||production,|||||||||
|FIYTA|Controlled|||10,000,000.|machining,|10,000,000.||||||||
|||Shenzhen|Manufacture||||0.00|100.00%|100.00%|Yes|0.00|0.00|0.00|
|Technology|by stock|||00|sales and|00||||||||
||||||technology|||||||||
||||||developmen|||||||||
||||||t of|||||||||
||||||sophisticate|||||||||
||||||d parts.|||||||||
||||||Sales of|||||||||
||||||clocks and|||||||||
||||||watches and|||||||||
||||||gifts and|||||||||
||Controlled|||5,000,000.0|consultation|5,000,000.0||||||||
|FIYTA Trade||Shenzhen|Commerce||||0.00|100.00%|100.00%|Yes|0.00|0.00|0.00|
||by stock|||0|of relevant|0||||||||
||||||information|||||||||
||||||and other|||||||||
||||||domestic|||||||||
||||||trading|||||||||
||||||Cultural|||||||||
||||||activity|||||||||
||Controlled||||planning,|||||||||
|Cultural Co.||Shenzhen|Commerce|500,000.00||500,000.00|0.00|100.00%|100.00%|Yes|0.00|0.00|0.00|
||by stock||||devoting to|||||||||
||||||advertiseme|||||||||
||||||nt business|||||||||
||||||Wholesale,|||||||||
||||||import and|||||||||
||||||export of|||||||||
|Emile|||||watches,|||||||||
||Controlled|||5,500,000.0||4,376,000.0||||||||
|Chouriet||Shenzhen|Commerce||watch||0.00|100.00%|100.00%|Yes|0.00|0.00|0.00|
||by stock|||0||0||||||||
|(Shenzhen)|||||spares and|||||||||
||||||parts,|||||||||
||||||jewelry,|||||||||
||||||ornaments|||||||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||and the|||||||||
||||||supplement|||||||||
||||||ary|||||||||
||||||business;|||||||||
||||||after-sale|||||||||
||||||repairing|||||||||
||||||service of|||||||||
||||||watches|||||||||
|World|||||Retail and|||||||||
||Controlled|||10,000,000.||8,377,000.0||||||||
|Watches||Hong Kong|Commerce||repairing||0.00|100.00%|100.00%|Yes|0.00|0.00|0.00|
||by stock|||00||0||||||||
|International|||||services|||||||||
||||||design, R &|||||||||
||||||D and sales|||||||||
||||||of various|||||||||
||||||watches,|||||||||
||||||timing|||||||||
||||||instruments|||||||||
||||||and spares|||||||||
||Controlled|||50,000,000.||50,000,000.||||||||
|FIYTA Sales||Shenzhen|Commerce||and||0.00|100.00%|100.00%|Yes|0.00|0.00|0.00|
||by stock|||00(CNY)||00||||||||
||||||accessory|||||||||
||||||parts, sales|||||||||
||||||of jewelry|||||||||
||||||and|||||||||
||||||ornaments;|||||||||
||||||import &|||||||||
||||||export|||||||||

Other notes to the subsidiaries acquired by means of establishment or investment, etc.
Inapplicable
2) Subsidiaries under the Common Control Acquired through Enterprise Consolidation
In CNY
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||Balance of|
|||||||||||||Amount in|the owner’s|
||||||||Balance of|||||||
|||||||||||||the minority|equity of the|
||||||||other items|||||||
|||||||||||||shareholder|parent|
||||||||which|||||||
|||||||||||Are the||s’ equity|company|
|||||||Actual|substantially|Shareholdin|Proportion of||Minority|||
|Full Name of|Subsidiary|Place of|Business|Registered|Business|||||statements||used for|offsetting the|
|||||||investment|composes|g proportion|voting power||shareholder|||
|Subsidiaries|type|Registration|type|Capital|Scope|||||consolidated||offsetting|loss shared|
|||||||at year end|net|(%)|(%)||s’ equity|||
|||||||||||(Y/N)||minority|by minority|
||||||||investment|||||||
|||||||||||||shareholder|shareholder|
||||||||in the|||||||
|||||||||||||s’ gain and|s in the|
||||||||subsidiary|||||||
|||||||||||||loss|reporting|
||||||||||||||period|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||exceeding|
||||||||||||||the share|
||||||||||||||enjoyed in|
||||||||||||||the owner’s|
||||||||||||||equity at|
||||||||||||||year|
||||||||||||||beginning|
||||||Wholesale,|||||||||
||||||retail and|||||||||
||||||repairing of|||||||||
||||||watches and|||||||||
||||||accessory|||||||||
||||||parts,|||||||||
||||||electronic|||||||||
|Liaoning||||||||||||||
||||||products,|||||||||
|Hengdarui|Equity-contr|||||||||||||
|||||51,000,000.|communicati|56,001,000.||||||||
|Commercial|olled|Shenyang|Commerce||||0.00|100.00%|100.00%|yes|0.00|0.00|0.00|
|||||00(CNY)|on|00||||||||
|& Trade Co.,||||||||||||||
||||||equipment|||||||||
|Ltd.||||||||||||||
||||||and|||||||||
||||||materials,|||||||||
||||||general|||||||||
||||||merchandis|||||||||
||||||e, property|||||||||
||||||managemen|||||||||
||||||t and lease|||||||||

Other notes to the subsidiaries acquired by means of consolidation of enterprises under the common control, etc.
Inapplicable
(3) Subsidiaries acquired through consolidation of the enterprises not under the same control In CNY
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Amount in|Balance of|
||||||||Balance of|||||minority|the owner’s|
||||||||other items|||||shareholder|equity of the|
|||||||Amount|actually|||Consolidate||s’ equity|parent|
|Full Names||||||||||||||
||Subsidiary|Place of|Business|Registered|Business|actually|made up to|Shareholdin|Proportion of|d|Minority|used to|company|
|of||||||||||||||
||type|Registration|type|capital|Scope|invested at|net|g proportion|voting power|statement ?|equity|write-down|offsetting the|
|Subsidiaries||||||||||||||
|||||||year end|investment|||Yes/No||minority|loss shared|
||||||||to the|||||shareholder|by minority|
||||||||subsidiaries|||||s’ gain and|shareholder|
|||||||||||||loss|s in the|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||reporting|
||||||||||||||period|
||||||||||||||exceeding|
||||||||||||||the share|
||||||||||||||enjoyed in|
||||||||||||||the owner’s|
||||||||||||||equity at|
||||||||||||||year|
||||||||||||||beginning|
|Kunming|||||Domestic|||||||||
|Lishan|||||trading and|||||||||
||Controlled|||5,000,000.0||1,200,000.0||||||||
|Department||Kunming|Commerce||materials||0.00|100.00%|100.00%|Yes|0.00|0.00|0.00|
||by stock|||0(CNY)||0||||||||
|Store Co.,|||||supply and|||||||||
|Ltd.|||||sale|||||||||
||||||Production,|||||||||
||||||manufacture|||||||||
|The Swiss|Controlled|||5,000,000.0|and sales of|39,396,251.||||||||
|||Switzerland|Commerce||||0.00|100.00%|100.00%|Yes|0.00|0.00|0.00|
|Company|by stock|||0(CHF)|Emile|10||||||||
||||||Chouriet|||||||||
||||||watches|||||||||

Other notes to the subsidiaries acquired by means of consolidation of enterprises not under the common control, etc.
Inapplicable
2. Operating entities with the control power formed by special purpose entity or through entrusted operation or tenancy
Inapplicable
3. Note to Change in the Consolidation Scope
Note to Change in the Consolidation Scope
Shenzhen World Watches Center Co., Ltd. (hereinafter referred to as “World Watches Center”) used to be a joint venture of the Group. According to the agreement entered into between the Group and Shenzhen Shenhang Avionics Co., Ltd. (hereinafter referred to as Shenhang Avionics), another shareholder of World Watches Center). Shenhang Avionics enjoyed fixed income every year commencing from 2003 but did not participate in the operation of the company. The Group actually exclusively controls the finance, operation and management of the World Watches Center. Therefore, the company was placed in theGroup’s consolidation scope. The company closed due to the removal of its premises in 2008.
During the reporting period, World Watches Center completed the procedures of cancellation on May 5,
2014 and has no longer been placed in the consolidation scope. This event has no significant influence
FIYTA Holdings Ltd. 2014 Semi-Annual Report upon theCompany’s overall production and operation and its performances during the reporting period. Inapplicable
4. Principal(s) newly included in the consolidation in the reporting period and principal(s) no longer included in the consolidation in the reporting period
Subsidiaries, special purpose principals and entities with the control power formed by means of entrusted operation or lease, ect. newly included in the consolidation scope during the reporting period. Inapplicable
Subsidiaries, special purpose principals and entities with the control power formed by means of entrusted operation or lease, etc. no longer included in the consolidation scope during the reporting period.
In CNY
||||
|-|-|-|
|||Net profit from the year|
||Net asset as at the date of||
|Name||beginning to the date of|
||disposal||
|||disposal|
|Shenzhen World Watches Center Co., Ltd.|0.00|136,218.67|

 Other note to the principal(s) newly included in the consolidation scope and principal(s) no longer included in the consolidation scope.
World Watches Center closed due to the removal of its premises in 2008. During the reporting period, it completed the procedures of cancellation on May 5, 2014 and has no longer been placed in the consolidation scope. This event has no significant influence upon theCompany’s overall production and operation and its performances during the reporting period.
5. Consolidation of the enterprises under the common control incurred in the reporting period Inapplicable
6. Consolidation of the enterprises not under the common control incurred in the reporting period
Inapplicable
7. Subsidiary reduced due to loss of control power resulting from sales of equity in the reporting period
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report 8. Counterpurchase incurred in the reporting period
Inapplicable
9. Merger incurred in the reporting period
Inapplicable
10. The conversion rate of the principal statement items of the overseas operating entities
||||
|-|-|-|
|Items|Assets and Liabilities||
||June 30, 2014|December 31, 2013|
|FIYTA Hong Kong Limited|HKD 1 = CNY 0.7938|HKD 1 = CNY 0.7862|
|World Watches International|HKD 1 = CNY 0.7938|HKD 1 = CNY 0.7862|
|The Swiss Company|S.FR. 1 = CNY 6.9738|S.FR. 1 = CNY 6.8336|
|Items|Revenue, expenses and cash flow items||
||January to June, 2014|January to June, 2013|
|FIYTA Hong Kong Limited|HKD 1 = CNY 0.7900|HKD 1 = CNY 0.8037|
|World Watches International|HKD 1 = CNY 0.7900|HKD 1 = CNY 0.8037|
|The Swiss Company|S.FR. 1 = CNY 6.9037|1 瑞士法郎= CNY 6.6627|

 Note: 68-Station Limited is a subsidiary of FIYTA Hong Kong Limited, BAODING and LIANGYA are operating entities controlled by FIYTA Hong Kong Limited, and the exchange rate and way of conversion were the same as FIYTA Hong Kong Limited.
VII. Notes to the principal items in the consolidated financial statements
1. Monetary fund
In CNY
||||||||
|-|-|-|-|-|-|-|
||End of the Reporting Period|||Beginning of the reporting period|||
|Items|Amount in foreign|Conversion||Amount in foreign|Conversion||
||||Amount in CNY|||Amount in CNY|
||currency|rate||currency|rate||
|Cash on hand|--|--|664,850.83|--|--|487,926.67|
|CNY|--|--|641,266.21|--|--|422,048.31|
|HKD|365.83|0.7938|290.40|4,697.33|0.7862|3,693.04|
|US$|598.00|6.1528|3,679.37|598.00|6.0969|3,645.95|
|Euro|2,024.45|8.3946|16,994.45|5,587.20|8.4189|47,038.08|
|Swiss Franc|375.75|6.9738|2,620.41|1,683.05|6.8336|11,501.29|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||||||
|-|-|-|-|-|-|-|
|Bank deposit:|--|--|159,173,385.30|--|--|107,168,563.21|
|CNY|--|--|146,049,357.74|--|--|95,824,234.81|
|HKD|9,381,972.05|0.7938|7,447,409.41|9,135,662.45|0.7862|7,182,542.68|
|US$|206,751.63|6.1528|1,272,101.43|213,460.48|6.0969|1,301,410.16|
|Swiss Franc|631,580.59|6.9738|4,404,516.72|418,575.21|6.8336|2,860,375.56|
|Other Monetary Fund:|--|--|5,520.86|--|--|6,620.86|
|CNY|--|--|5,520.86|--|--|6,620.86|
|Total|--|--|159,843,756.99|--|--|107,663,110.74|

 The accounts with recovery risks due to application restrictions such as mortgage, pledge or freezing or being deposited abroad, should be explained separately
Inapplicable
2. Transactional financial assets
(1) Transactional financial assets
Inapplicable
(2) Transactional financial assets with restriction in realization
Inapplicable
(3) Note to Hedging Instrument and the Relevant Hedging Transaction
Inapplicable
3. Notes receivable
(1) Classification of Notes Receivable
In CNY
||||
|-|-|-|
|||Beginning of the reporting|
|Categories|End of the Reporting Period||
|||period|
|Bank acceptance|2,200,559.00|100,000.00|
|Trade acceptance|16,742,100.00|7,000,000.00|
|Total|18,942,659.00|7,100,000.00|

 (2) Notes receivable already pledged at the end of the reporting period
Inapplicable
(3) Notes that are transferred into accounts receivable as the issuer fails to keep promise, and that have been endorsed to any other party by the Company but are still undue at the end of the reporting period
Inapplicable
4. Dividends receivable
FIYTA Holdings Ltd. 2014 Semi-Annual Report Inapplicable
5. Interest receivable
(1) Interest receivable
Inapplicable
(2) Overdue interest
Inapplicable
(3) Note to interest receivable
Inapplicable
6. Accounts receivable
(1) Disclosure based on types of accounts receivable
In CNY
||||||||||
|-|-|-|-|-|-|-|-|-|
||End of the Reporting Period||||Beginning of the reporting period||||
|Categories|Book balance||Bad debt reserve||Book balance||Bad debt reserve||
||Amount|Proportion|Amount|Proportion|Amount|Proportion|Amount|Proportion|
|Accounts receivable for which bad debt reserve has been provided based on the combination|||||||||
|Grouping based on the|212,755,716||6,920,862.5||143,086,0||||
|||48.73%||3.25%||43.09%|7,193,141.49|5.03%|
|accounting age|.24||1||26.61||||
|Grouping of the designated|223,463,746||||188,564,4||||
|||51.18%||||56.79%|||
|accounts|.02||||54.07||||
||436,219,462||6,920,862.5||331,650,4||||
|Subtotal of grouping||99.91%||1.59%||99.88%|7,193,141.49|2.17%|
||.26||1||80.68||||
|Accounts receivable with|||||||||
|insignificant single amount|||||401,267.1||||
||401,267.10|0.09%|401,267.10|100.00%||0.12%|401,267.10|100.00%|
|and provision of bad debt|||||0||||
|reserve on individual basis|||||||||
||436,620,729||7,322,129.6||332,051,7||||
|Total||--||--||--|7,594,408.59|--|
||.36||1||47.78||||

Note to the categories of accounts receivable:
Accounts receivable with significant single amount and provision of bad debt reserve on individual basis Inapplicable
In the grouping, the accounts receivable for which the bad debt reserve is provided based on the age
FIYTA Holdings Ltd. 2014 Semi-Annual Report analysis
In CNY
||||||||
|-|-|-|-|-|-|-|
||End of the Reporting Period|||Beginning of the reporting period|||
||Book balance|||Book balance|||
|Age||||||Bad debt|
|||Proportio|Bad debt reserve||Proportio||
||Amount|||Amount||reserve|
|||n|||n||
|Within a year|||||||
|Including:|--|--|--|--|--|--|
|||||140,672,904.4|||
|Within a year|210,474,323.05|98.93%|6,670,024.29||98.31%|6,951,829.27|
|||||0|||
|Subtotal within||||140,672,904.4|||
||210,474,323.05|98.93%|6,670,024.29||98.31%|6,951,829.27|
|a year||||0|||
|1 to 2 years|2,167,898.69|1.02%|216,789.87|2,413,122.21|1.69%|241,312.22|
|2 to 3 years|113,494.50|0.05%|34,048.35||0.00%||
|Over 3 years|0.00|0.00%|0.00||0.00%||
|||||143,086,026.6|||
|Total|212,755,716.24|--|6,920,862.51||--|7,193,141.49|
|||||1|||

In the grouping, the account receivable for which reserve for bad debt is provided based on balance percentage:
Inapplicable
In the grouping, the accounts receivable for which the bad debt reserve is provided based on the other method:
In CNY
||||
|-|-|-|
|Description of grouping|Book balance|Bad debt reserve|
|Grouping of the designated|||
||223,463,746.02|0.00|
|accounts|||
|Total|223,463,746.02|0.00|

 At the end of the reporting period, accounts receivable with insignificant single amount and provision of bad debt reserve on individual basis:
In CNY
||||||
|-|-|-|-|-|
|Contents of|||Provision||
||Book balance|Bad debt reserve||Reason of provision|
|accounts receivable|||proportion (%)||
|Doubtful|||||
||401,267.10|401,267.10|100.00%|Unrecoverable|
|accounts/bad debt|||||
|Total|401,267.10|401,267.10|--|--|

(2) Accounts receivable reversed or recovered in the reporting period
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report (3) Accounts receivable actually written-off in the reporting period
Inapplicable
(4) Accounts receivable from the shareholder holding over5% (including5%) of theCompany’s voting shares in the reporting period
Inapplicable
(5) Top five debtors of the accounts receivable
In CNY
||||||
|-|-|-|-|-|
|||||Proportion in the|
|Organization|Relationship with||||
|||Amount|Year|total accounts|
|Names|the Company||||
|||||receivable (%)|
|Fuzhou Dayang|||||
|General|||||
||Non-Related Party|5,853,692.72|Within a year|1.34%|
|Merchandise Co.,|||||
|Ltd.|||||
|Century Ginwa|||||
|Urumqi Shopping|||||
||Non-Related Party|5,742,092.58|Within a year|1.32%|
|Center Co., Ltd.|||||
|Rainbow|Controlled by the||||
|Supermarket Co.,|same parent|4,085,198.33|Within a year|0.94%|
|Ltd.|company||||
|BILLION GENESIS|||||
|ENTERPRISE|Non-Related Party|3,876,219.44|Within a year|0.89%|
|LIMITED|||||
|China Resource|||||
|(Shenzhen) Co.,|||||
||Non-Related Party|3,677,548.70|Within a year|0.84%|
|Ltd. (Omega|||||
|Flagship Shop)|||||
|Total|--|23,234,751.77|--|5.33%|

 (6) Accounts receivable from the related parties
In CNY
|||||
|-|-|-|-|
||Relationship with the||Proportion in the total|
|Organization Names||Amount||
||Company||accounts receivable (%)|
||Controlled by the same|||
|Rainbow Supermarket||4,085,198.33|0.94%|
||parent company|||
|AVIC|The Company’s eventual|630,779.00|0.14%|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||
|-|-|-|-|
||controller|||
|Shennan Circuit Co.,|Controlled by the sameparent company|||
|||2,305,125.44|0.53%|
|Ltd.||||
|CATIC Electronic|Controlled by the sameparent company|||
|Measuring Instruments||34,216.60|0.01%|
|Co., Ltd.||||
|Total|--|7,055,319.37|1.62%|

 (7) Accounts receivable eventually recognized
Inapplicable
(8) In case of securitization with the accounts receivable as the object, the amounts of the assets and liabilities continuing to be involved in the formation are stated
Inapplicable
7. Other Receivables
(1) Other receivables disclosed based on categories
In CNY
||||||||||
|-|-|-|-|-|-|-|-|-|
||End of the Reporting Period||||Beginning of the reporting period||||
||Book balance||Bad debt reserve||Book balance||Bad debt reserve||
|Categories|||||||||
|||Proporti||Proportion||Proportio||Proport|
||Amount||Amount||Amount||Amount||
|||on||||n||ion|
|Other receivables with provision of bad debt reserve based on grouping|||||||||
|Grouping of the|||||||||
||42,441,93||2,171,414.||29,759,91||2,023,735.6||
|designated||83.47%||5.12%||70.09%||6.80%|
||6.03||66||8.66||7||
|accounts|||||||||
|Grouping based on|8,403,985.||||12,700,45||||
|||16.53%||||29.91%|||
|the accounting age|49||||7.11||||
|Subtotal of|50,845,92|100.00|2,171,414.||42,460,37||2,023,735.6||
|||||4.27%||100.00%||4.77%|
|grouping|1.52|%|66||5.77||7||
||50,845,92||2,171,414.||42,460,37||2,023,735.6||
|Total||--||--||--||--|
||1.52||66||5.77||7||

Note to categories of other receivables
Other receivables with significant single amount and provision of bad debt reserve
Inapplicable
Other receivables with provision of bad debt reserve based on age analysis in grouping.
Inapplicable
In CNY
||||
|-|-|-|
|Age|End of the Reporting Period|Beginning of the reporting period|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||||||
|-|-|-|-|-|-|-|
||Book balance|||Book balance|||
||||Bad debt||||
|||Propo|||Propo|Bad debt reserve|
||Amount||reserve|Amount|||
|||rtion|||rtion||
|Within a year|||||||
|Including:|||||||
|||88.97|||89.03||
|Within a year|38,043,002.93||1,160,926.70|26,494,988.82||1,335,820.98|
|||%|||%||
|Subtotal within a||88.97|||89.03||
||38,043,002.93||1,160,926.70|26,494,988.82||1,335,820.98|
|year||%|||%||
|1 to 2 years|2,309,043.16|5.40%|230,677.64|1,445,878.69|4.86%|144,587.87|
|2 to 3 years|1,805,737.30|4.22%|525,256.15|1,725,872.82|5.80%|517,762.65|
|Over 3 years|601,434.30|1.41%|254,554.17|93,178.33|0.31%|25,564.17|
|Total|42,759,217.69|--|2,171,414.66|29,759,918.66|--|2,023,735.67|

 Other receivables with provision of bad debt reserve based on the balance percentage method in grouping.
Inapplicable
Other receivables with provision of bad debt reserve based on other method in grouping
In CNY
||||
|-|-|-|
|Grouping Description|Book balance|Bad debt reserve|
|Grouping of the designated accounts|8,403,985.49|0.00|
|Total|8,403,985.49|0.00|

 Other receivables with insignificant single amount but with provision of bad debt reserve by individual Inapplicable
(2) Other receivables reversed or recovered in the reporting period
Inapplicable
(3) Other receivables actually written-off in the reporting period
Inapplicable
(4) Other receivables from the shareholder holding over5% (including5%) of theCompany’s voting shares in the reporting period
Inapplicable
(5)Nature or description of the other receivables with bigger amount
In CNY
FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||
|-|-|-|-|
|||Nature or content|Proportion in the total other|
|Organization Names|Amount|||
|||of the accounts|receivables (%)|
|China Resource||Shopping mall||
||3,135,144.00||6.17%|
|(Shenzhen) Co., Ltd.||deposit||
|Shenzhen Airport Co.,||Shopping mall||
||1,124,513.00||2.21%|
|Ltd.||deposit||
|Lifeng Commerce Co.,||Shopping mall||
||1,123,431.11||2.21%|
|Ltd.||deposit||
|Shenzhen Yitian Holiday||||
|||Shopping mall||
|World Real Estate|1,090,523.00||2.14%|
|||deposit||
|Development Co., Ltd.||||
|||Promotion charge||
|Astro swiss Time lirshed|1,030,314.99||2.03%|
|||receivable||
|Shenzhen Chengtian||Advertisement||
||800,000.00||1.57%|
|Advertisement Co., Ltd.||deposit||
|Total|8,303,926.10|--|16.33%|

 (6) Top Five Debtors of the Other Receivables
In CNY
||||||
|-|-|-|-|-|
|||||Proportion in the|
|Organization|Relationship with||||
|||Amount|Year|total other|
|Names|the Company||||
|||||receivables (%)|
|China Resource|||||
|(Shenzhen) Co.,|Non-Related Party|3,135,144.00|Within a year|6.17%|
|Ltd.|||||
|Shenzhen Airport|||||
||Non-Related Party|1,124,513.00|Within a year|2.21%|
|Co., Ltd.|||||
|Lifeng Commerce|||||
||Non-Related Party|1,123,431.11|Within a year|2.21%|
|Co., Ltd.|||||
|Shenzhen Yitian|||||
|Holiday World Real|||||
|Estate|Non-Related Party|1,090,523.00|Within a year|2.14%|
|Development Co.,|||||
|Ltd.|||||
|Astro swiss Time|||||
||Non-Related Party|1,030,314.99|Within a year|2.03%|
|lirshed|||||
|Total|--|7,503,926.10|--|14.76%|

 (7) Other receivables from related parties
Inapplicable
(8) Other receivable terminated for recognition
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report 9) In case of securitization on the asset of other receivables, the amounts of the assets and liabilities continuing to be involved in the formation are stated
Inapplicable
(10) Government subsidy recognized as account receivable at the end of the reporting period Inapplicable
8. Advance Payment
(1) Advance payment presented based on age
In CNY
||||||
|-|-|-|-|-|
||End of the Reporting Period||Beginning of the reporting period||
|Age|||||
||Amount|Proportion|Amount|Proportion|
|Within a year|26,169,202.80|86.53%|39,385,528.82|90.57%|
|Within a year|3,470,029.36|11.47%|3,501,516.25|8.05%|
|1 to 2 years|146,711.10|0.49%|143,958.00|0.33%|
|2 to 3 years|456,610.00|1.51%|456,610.00|1.05%|
|Over 3 years|30,242,553.26|--|43,487,613.07|--|

 Note to the age of advance payments
Inapplicable
(2) Top Five Receivers of Advance Payment
In CNY
||||||
|-|-|-|-|-|
|Organization|Relationship with|||Causes of|
|||Amount|Time||
|Names|the Company|||unsettlement|
|SAN SUN|||||
|||||Advance trade|
|INDUSTRIAL CO.,|Non-Related Party|13,296,350.79|Within a year||
|||||payment|
|LTD.|||||
|Beat Blattmann||||Advance trade|
||Non-Related Party|4,052,391.28|Within a year||
|Marketing||||payment|
|Liberty Time Center||||Advance trade|
||Non-Related Party|2,257,599.60|Within a year||
|GmbH||||payment|
|Sellita Watch CO||||Advance trade|
||Non-Related Party|1,622,823.91|Within a year||
|SA||||payment|
|||||Advance trade|
|Soprod SA|Non-Related Party|815,244.30|Within a year||
|||||payment|
|Total|--|22,044,409.88|--|--|

Note to the major organizations of advance payments
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report (3) Advance payment from the shareholder holding over5% (including5%) of theCompany’s voting shares in the reporting period
Inapplicable
(4) Note to the advance payment
Inapplicable
9. Inventories
(1) Classification of Inventories
In CNY
||||||||
|-|-|-|-|-|-|-|
||End of the Reporting Period|||Beginning of the reporting period|||
|Items||Provision for|||Provision for||
||Book balance||Book value|Book balance||Book value|
|||price falling|||price falling||
|Raw materials|128,537,978.38|7,641,903.65|120,896,074.73|122,362,922.04|4,886,794.86|117,476,127.18|
|Products in|||||||
||13,310,042.38|0.00|13,310,042.38|19,607,611.43|0.00|19,607,611.43|
|process|||||||
|||25,982,428.2|1,948,190,940.|2,012,241,510.||1,986,259,082.|
|Goods in stock|1,974,173,368.85||||25,982,428.24||
|||4|61|56||32|
|||33,624,331.8|2,082,397,057.72|2,154,212,044.||2,123,342,820.93|
|Total|2,116,021,389.61||||30,869,223.10||
|||9||03|||

 (2) Provision for price falling of inventories
In CNY
|||||||
|-|-|-|-|-|-|
||Opening book|Reserve provided|Decrease in the reporting period|||
|Categories|||||Ending book balance|
||balance|in the period|Reversal|Written-off||
|Raw materials|4,886,794.86|2,755,108.79|||7,641,903.65|
|Products in process|0.00||||0.00|
|Goods in stock|25,982,428.24||||25,982,428.24|
|Total|30,869,223.10|2,755,108.79|||33,624,331.89|

 (3) About provision for price falling of inventories
|||||
|-|-|-|-|
|||Cause of reversal of the|Proportion of the amount|
||Basis for provision for price|provision for price falling of|reversed in the ending|
|Items||||
||falling of inventories|inventories in the reporting|balance of the inventories in|
|||period|the reporting period (%)|
||Net realizable value lower|||
|Raw materials||Inapplicable|0.00%|
||than the corresponding cost|||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||
|-|-|-|-|
||Net realizable value lower|||
|Goods in stock||Inapplicable|0.00%|
||than the corresponding cost|||

Note to the inventories
Inapplicable
10. Other current assets
In CNY
||||
|-|-|-|
|Items|End of the Reporting Period|Beginning of the reporting period|
|Input VAT to be offset|4,324,363.65|23,781,515.54|
|Rent|2,843,396.19|3,759,382.17|
|Others|2,130,004.99|3,271,093.36|
|Total|9,297,764.83|30,811,991.07|

 Note to other current liabilities:
TheGroup’s input VAT from procurements not yet offset in the reporting period.
11. Available-for-sale financial assets
(1) About the available-for-sale financial assets
Inapplicable
(2) Long term credit investment in the available-for-sale financial assets
Inapplicable
(3) Impairment of the available-for-sale financial assets
Inapplicable
(4) Change in impairment of the available-for-sale financial assets during the reporting period Inapplicable
(5) Note to big falling or continuous falling of the fair value of the available-for-sale financial assets at the end of the reporting period
Inapplicable
12. Held-to-maturity investments
(1) About the held-to-maturity investment
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report (2) About the held-to-maturity investment sold or still undue in the reporting period
Inapplicable
13. Long term accounts receivable
Inapplicable
14. Investment in joint ventures and associates
In CNY
|||||||||
|-|-|-|-|-|-|-|-|
|||Proportion||||||
||Proportion|||||||
|||of the||||Total||
||of the||||||Net profit in|
|||Company’s||Total|Total net|business||
||shares held||Total assets||||the|
|Investees||voting||liabilities at|asset at|income in||
||by the||at year end||||reporting|
|||power in the||year end|year end|the report||
||Company||||||period|
|||investee||||period||
||(%)|||||||
|||(%)||||||
|I. Joint venture||||||||
|II. Associates||||||||
|Shanghai||||||||
|Watch|||96,176,699.|14,710,516.|81,466,182.|52,972,924.|1,076,068.6|
||25.00%|25.00%||||||
|Industry|||34|78|56|33|7|
|Co., Ltd.||||||||

Note to the significant difference between the joint ventures& associates and the Company in important accounting policies and accounting estimate:
Inapplicable
15. Long-term equity investment
(1) Statement of Long Term Equity Investment
In CNY
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Note to||||
||||||||Proportio|the||||
||||||||n of the|inconsist||||
|||||||Proportio||||||
||||||||investee’|ence||Reserve||
|||||||n of the||||||
||||||||s|between||for|Cash|
|||||||investee’|||Reserve|||
||Way of||||||vote-bea|the||impairme|dividend|
|Investee||Investme|Opening|Increase/|Ending|s shares|||for|||
||calculati||||||ring|proportio||nt|in the|
|s||nt costs|balance|decrease|balance|held by|||impairme|||
||on||||||shares|n of the||provided|report|
|||||||the|||nt|||
||||||||held by|shares in||in the|period|
|||||||Compan||||||
||||||||the|the||period||
|||||||y (%)||||||
||||||||Compan|investee||||
||||||||y (%)|s held by||||
|||||||||the||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Compan||||
|||||||||y and the||||
|||||||||voting||||
|||||||||power||||
|Shangha||||||||||||
|i Watch|Equity|39,916,5|43,237,9|-504,563|42,733,3|||||||
|||||||25.00%|25.00%|-|0.00|0.00|0.00|
|Industry|method|00.00|40.12|.21|76.91|||||||
|Co., Ltd.||||||||||||
|Xi’an||||||||||||
|Tangche|Cost|85,000.0|85,000.0||85,000.0|||||||
|||||0.00||0.10%|0.10%|-|0.00|0.00|0.00|
|ng Co.,|method|0|0||0|||||||
|Ltd.||||||||||||
|Shenzhe||||||||||||
|n CATIC||||||||||||
|Culture|Cost|300,000.|300,000.||300,000.||||300,000.|||
|||||0.00||15.00%|15.00%|-||0.00|0.00|
|Commun|method|00|00||00||||00|||
|ication||||||||||||
|Co., Ltd.||||||||||||
|||40,301,5|43,622,9|-504,563|43,118,3||||300,000.|||
|Total|--|||||--|--|--||0.00|0.00|
|||00.00|40.12|.21|76.91||||00|||

(2) About the ability of transferring fund to the investing company being restricted
Inapplicable
16. Investment Property Based Real Estate
(1) Investment property measured based on costs
In CNY
||||||
|-|-|-|-|-|
|||Increase in the|Decrease in the||
|Items|Opening book balance|||Ending book balance|
|||reporting period|reporting period||
|I. Total Book Costs|340,029,020.44|0.00|0.00|340,029,020.44|
|1. Housing and|||||
||340,029,020.44|0.00|0.00|340,029,020.44|
|buildings|||||
|2. Land use right|0.00|0.00|0.00|0.00|
|II. Total of|||||
|accumulative|||||
|depreciation and|104,793,335.68|4,571,872.94|0.00|109,365,208.62|
|accumulative|||||
|amortization|||||
|1. Housing and|||||
||104,793,335.68|4,571,872.94|0.00|109,365,208.62|
|buildings|||||
|2. Land use right|0.00|0.00|0.00|0.00|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||||
|-|-|-|-|-|
|III. Total net book|||||
|value of the|235,235,684.76|-4,571,872.94|0.00|230,663,811.82|
|investment property|||||
|1. Housing and|||||
||0.00|0.00|0.00|0.00|
|buildings|||||
|2. Land use right|0.00|0.00|0.00|0.00|
|IV. Total|||||
|accumulative|||||
|amount of the|||||
||0.00|0.00|0.00|0.00|
|provision for|||||
|impairment of|||||
|investment property|||||
|1. Housing and|||||
||0.00|0.00|0.00|0.00|
|buildings|||||
|2. Land use right|0.00|0.00|0.00|0.00|
|V. Total book value|||||
|of the investment|235,235,684.76|-4,571,872.94|0.00|230,663,811.82|
|property|||||
|1. Housing and|||||
||235,235,684.76|-4,571,872.94|0.00|230,663,811.82|
|buildings|||||
|2. Land use right|0.00|0.00|0.00|0.00|

 In CNY
|||
|-|-|
||Reporting period|
|Depreciation and amortization amount during the||
||4,571,872.94|
|reporting period||

(2) Investment property measured based on fair value
In CNY
|||||||||
|-|-|-|-|-|-|-|-|
||||||Decrease in the|||
||Fair value|Increase in the reporting period||||||
||||||reporting period||Fair value|
||at the|||||||
||||Property for||||at the end|
||beginning|||Gain/loss||Turned to||
|Item|||self-use or||||of the|
||of the|||from||be the||
|||Purchased|transfer-in||Disposal||reporting|
||reporting|||change of||property for||
||||of||||period|
||period|||fair value||self-use||
||||inventories|||||

Describe the investment property whose measurement mode was changed or the investment property for which the procedures for the certificate of title have not been completed and explain the reason why the procedures for the certificate of title have not been completed and predict the time of handling the procedures.
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report 17. Fixed assets
(1) About Fixed assets
In CNY
|||||||
|-|-|-|-|-|-|
||Opening book|||Decrease in the|Ending book|
|Items||Increase in the reporting period||||
||balance|||reporting period|balance|
|I. Total Book Costs|430,826,947.41|23,647,355.33||490,923.60|453,983,379.14|
|Including: housing and||||||
||307,261,172.99|15,313,748.05||0.00|322,574,921.04|
|buildings||||||
|Machines &||||||
||44,810,836.22|5,220,236.81||0.00|50,031,073.03|
|equipment||||||
|Motor vehicles|14,308,808.47|427,507.64||330,843.00|14,405,473.11|
|Electronic||||||
||27,684,446.02|885,790.64||45,042.02|28,525,194.64|
|equipment||||||
|Others|36,761,683.71|1,800,072.19||115,038.58|38,446,717.32|
|||New increase in|Amount provided||Ending balance|
||Opening book|||Decrease in the||
|--||the reporting|in the reporting||of the reporting|
||balance|||reporting period||
|||period|period||period|
|II. Total accumulated||||||
||123,937,983.10||11,504,998.34|431,314.82|135,011,666.62|
|depreciation||||||
|Including: housing and||||||
||43,730,217.50||5,264,177.63|0.00|48,994,395.13|
|buildings||||||
|Machines &||||||
||21,028,668.56||1,758,597.58|0.00|22,787,266.14|
|equipment||||||
|Motor vehicles|9,533,984.29||875,704.71|333,300.85|10,076,388.15|
|Electronic||||||
||19,430,839.23||1,426,256.77|38,698.35|20,818,397.65|
|equipment||||||
|Others|30,214,273.52||2,180,261.65|59,315.62|32,335,219.55|
||||||Ending balance|
||Opening book|||||
|--||--|||of the reporting|
||balance|||||
||||||period|
|III. Total net book value of||||||
||306,888,964.31|--|||318,971,712.52|
|fixed assets||||||
|Including: housing and||||||
||263,530,955.49|--|||263,530,955.49|
|buildings||||||
|Machines &||||||
||23,782,167.66|--|||23,782,167.66|
|equipment||||||
|Motor vehicles|4,774,824.18|--|||4,774,824.18|
|Electronic||||||
||8,253,606.79|--|||8,253,606.79|
|equipment||||||
|Others|6,547,410.19|--|||6,547,410.19|
|IV. Total provision for||||||
|||--||||
|impairment||||||
|Including: housing and||--||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||
|-|-|-|-|
|buildings||||
|Machines &|306,888,964.31||318,971,712.52|
|||--||
|equipment||||
|Motor vehicles|263,530,955.49|--|263,530,955.49|
|Electronic||||
||23,782,167.66|--|23,782,167.66|
|equipment||||
|Others|4,774,824.18|--|4,774,824.18|
|V. Total book value of||||
||8,253,606.79|--|8,253,606.79|
|fixed assets||||
|Including: housing and||||
||6,547,410.19|--|6,547,410.19|
|buildings||||
|Machines &||||
|equipment||||
|Motor vehicles||||
|Electronic||||
|equipment||||
|Others||||

The depreciation amount in the reporting period was CNY11,504,998.34; the cost of the fixed assets transferred in from the construction-in-process amounted to CNY 0.00.
(2) About temporarily idle fixed assets
Inapplicable
(3) Fixed assets rented through financing lease
Inapplicable
(4) Fixed assets leased through operating lease
Inapplicable
(5) About the fixed assets for sale held at the end of the reporting period
Inapplicable
(6) Fixed asset whose property title certificate has not been issued
||||
|-|-|-|
|||Predicted time of handling the|
||Cause of no certificate of title||
|Items||procedures for the certificate of|
||being granted||
|||title|
||Defects existing in the property||
|Office space of Harbin Branch||unknown|
||right||

Notes to the fixed assets
FIYTA Holdings Ltd. 2014 Semi-Annual Report As at June 30, 2014, as there existed defects in the property right of the buiding with the original book value amounting to CNY 593,340.00 (book value amounting to CNY 343,713.12), the application for the certificate of title failed;
As at June 30, 2014, the building with the original book value of CNY 26,929,577.43 (book value amounting to CNY23,265,693.99) was taken as the collateral for the long term loan amounting to CNY 7,331,286.38.
18. Construction-in-process
(1) About construction-in-process
In CNY
||||||||
|-|-|-|-|-|-|-|
||End of the Reporting Period|||Beginning of the reporting period|||
|Items||Reserve for|||Reserve for||
||Book balance||Book value|Book balance||Book value|
|||impairment|||impairment||
|Guangming New Zone|19,872,445.1||19,872,445.1||||
|||0.00||6,608,187.55|0.00|6,608,187.55|
|Watch Base Project|2||2||||
|Payment for improvement|||||||
|of the driving machine of|||||||
|the central air conditioning|282,000.00|0.00|282,000.00|0.00|0.00|0.00|
|and the cooling tower of|||||||
|Xi’an FIYTA Building|||||||
||20,154,445.1||20,154,445.12|||6,608,187.55|
|Total||||6,608,187.55|||
||2||||||

(2) Change of key construction-in-process project
In CNY
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Including:||||
|||||||Proportion||Accumulati|||||
||||||||||amount of|Interest|||
|||Beginning|Increase in|||of projects||ve amount|||||
|||||Transferred|||||interest|capitalizatio||End of the|
|||of the|the||Other|put into|Progress of|of the|||Funds||
|Items|Budget|||in to the|||||capitalizatio|n rate in the||Reporting|
|||reporting|reporting||decrease|practice in|the project|interest|||source||
|||||fixed asset|||||n in the|reporting||Period|
|||period|period|||the budget||capitalizatio|||||
||||||||||report|period (%)|||
|||||||(%)||n|||||
||||||||||period||||
|Guangming|||||||||||||
|New Zone|300,000,00|6,608,187.|13,264,257|||||||||19,872,445|
|||||0.00|0.00|6.62%|基础建设|69,020.44|69,020.44|3.03%|自筹||
|Watch|0.00|55|.57|||||||||.12|
|Base|||||||||||||
||300,000,00|6,608,187.|13,264,257|||||||||19,872,445|
|Total||||0.00|0.00|--|--|69,020.44|69,020.44|--|--||
||0.00|55|.57|||||||||.12|

Note to the change of the construction-in-process project
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report (3) Impairment reserve for the construction- in-process
Inapplicable
(4) Work progress of the key construction-in-process
Inapplicable
(5) Note to the construction-in-process
Inapplicable
19. Engineering Supplies
Inapplicable
20. Disposal of fixed assets
Inapplicable
21. Productive biological asset
Inapplicable
22. Oil and gas assets
Inapplicable
23. Intangible Assets
(1) About intangible assets
In CNY
||||||
|-|-|-|-|-|
||Opening book|Increase in the|Decrease in the|Ending book|
|Items|||||
||balance|reporting period|reporting period|balance|
|I. Total Book Costs|49,617,023.56|393,926.85|0.00|50,010,950.41|
|Land use right|34,854,239.40|0.00|0.00|34,854,239.40|
|Software system|4,397,962.64|393,926.85|0.00|4,791,889.49|
|Trademark use right|10,364,821.52|0.00|0.00|10,364,821.52|
|II. Total accumulated|||||
||13,448,411.84|720,075.39|0.00|14,168,487.23|
|amortization|||||
|Land use right|6,945,081.20|359,973.18|0.00|7,305,054.38|
|Software system|2,498,020.91|354,442.23|0.00|2,852,463.14|
|Trademark use right|4,005,309.73|5,659.98|0.00|4,010,969.71|
|III. Total net book value|36,168,611.72|-326,148.54||35,842,463.18|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||
|-|-|-|-|
|of intangible assets||||
|Land use right|27,909,158.20|-359,973.18|27,549,185.02|
|Software system|1,899,941.73|39,484.62|1,939,426.35|
|Trademark use right|6,359,511.79|-5,659.98|6,353,851.81|
|Land use right||||
|Software system||||
|Trademark use right||||
|III. Total book value of|36,168,611.72||35,842,463.18|
|||-326,148.54||
|intangible assets||||
|Land use right|27,909,158.20|-359,973.18|27,549,185.02|
|Software system|1,899,941.73|39,484.62|1,939,426.35|
|Trademark use right|6,359,511.79|-5,659.98|6,353,851.81|

 The amount amortized in the reporting period was CNY 720,075.39.
(2) Expenses for theCompany’s development projects
Inapplicable
24. Goodwill
In CNY
|||||||
|-|-|-|-|-|-|
|||Increase in the|Decrease in||Reserve for|
|Investees or matters|Openingbalance|||Ending||
|||reporting|the reporting||impairment|
|forming the goodwill||||balance||
|||period|period||at year end|
||||||1,735,756.4|
|Lishan Department Store|1,735,756.48|0.00|0.00|1,735,756.48||
||||||8|
||||||1,735,756.4|
|Total|1,735,756.48|0.00|0.00|1,735,756.48||
||||||8|

 Method for impairment testing and provision of reserve for impairment
HARMONY, one of theCompany’s subsidiaries acquired100% equity in Lishan Department Store on March 31, 2008 with valuable consideration of CNY 1,200,000.00 and the fair value of the recognizable net assets of Lishan Department Store on the acquisition day was CNY - 535,756.48. HARMONY presented the margin amounting to CNY 1,735,756.48 in the consolidated financial statements as “goodwill”. At the end of 2008, HARMONY made impairment test of the goodwill and charged the loss from impairment of the goodwill lower than the recoverable amount totaling CNY 1,735,756.48 to the gain and loss of the year 2008.
25. Long-term expenses to be apportioned
In CNY
||||||||
|-|-|-|-|-|-|-|
||Beginning of the|Increase in the|Amount amortized||End of the|Reasons of other|
|Items||||Other decrease|||
||reporting period|report period|in the report period||Reporting Period|decreases|
|Cost for making|||||||
||46,739,539.07|39,295,556.13|24,488,017.55|0.00|61,547,077.65||
|special counters|||||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||||||
|-|-|-|-|-|-|-|
|Refurbishment|82,497,957.56|13,116,280.06|20,922,504.42|0.00|74,691,733.20||
|Endorsement fee|15,295,637.91|0.00|3,823,909.50|0.00|11,471,728.41||
|Others|2,009,551.04|0.00|1,684,352.01|0.00|325,199.03||
|Total|146,542,685.58|52,411,836.19|50,918,783.48|0.00|148,035,738.29|--|

 Note to the long term expenses to be apportioned
||
|-|
|Note: The Group’s long term expenses to be apportioned were amortized by means of straight-line|
|method, the amortization term for the refurbishment costs was 5 years and that for other items was 2|
|years.|

26. Deferred Income Tax Asset and Deferred Income Tax Liability
(1) The deferred income tax asset/deferred income tax liability is not presented with the net amount after offsetting
Deferred Income Tax Asset/Deferred Income Tax Liability Already Recognized
In CNY
||||
|-|-|-|
|||Beginning of the reporting|
|Items|End of the Reporting Period||
|||period|
|Deferred income tax asset:|||
|Reserve for impairment of the assets|9,923,111.61|9,618,849.12|
|Organization costs|0.00|0.00|
|Offsettable loss|3,154,210.60|3,193,876.20|
|Offset of the internal unrealized profit|69,052,437.13|60,608,908.97|
|Deferred income|737,500.00|737,500.00|
|Subtotal|82,867,259.34|74,159,134.29|
|Deferred income tax liabilities:|||

Statement of unrecognized deferred income tax asset
In CNY
||||
|-|-|-|
|||Beginning of the reporting|
|Items|End of the Reporting Period||
|||period|
|Offsettable provisional discrepancy|2,052,861.77|2,035,756.48|
|Offsettable loss|601,988.81|0.00|
|Deferred income|480,000.00|0.00|
|Total|3,134,850.58|2,035,756.48|

 The offsettable loss of the unrecognized deferred income tax shall be due in the following years. Inapplicable
Statement of taxable discrepancy and offsettable discrepancy items
FIYTA Holdings Ltd. 2014 Semi-Annual Report In CNY
||||
|-|-|-|
||Items of temporary discrepancy||
|Items||Beginning of the reporting|
||End of the reporting period||
|||period|
|Taxable discrepancy items|||
|Offsettable discrepancy items|||
|Reserve for impairment of the assets|43,117,876.16|40,487,367.36|
|Offset of the internal unrealized profit|281,418,420.70|246,128,085.69|
|Deferred income|3,430,000.00|2,950,000.00|
|Offsettable loss|14,505,560.98|14,143,969.77|
|Subtotal|342,471,857.84|303,709,422.82|

 (2) Presentation of the net amount of the deferred income tax asset and deferred income tax liability after offsetting
Items consisting of deferred income tax assets and liabilities after mutual offsetting
In CNY
||||||
|-|-|-|-|-|
|||||Offsettable or|
|||Offsettable or|Deferred income||
||Deferred income|||taxable|
|||taxable temporary|tax assets or||
||tax assets or|||temporary|
|||discrepancy after|liabilities after||
||liabilities after|||discrepancy|
|Items||mutual offsetting|mutual offsetting||
||mutual offsetting|||after mutual|
|||at the end of the|at the beginning||
||at the end of the|||offsetting at the|
|||reporting period|of the reporting||
||reporting period|||beginning of the|
||||period||
|||||reporting period|
|Deferred income tax asset|82,867,259.34|342,471,857.84|74,159,134.29|303,709,422.82|

 Statement of mutual offsetting of deferred income tax asset with deferred income tax liability
Inapplicable
Note to the deferred income tax asset and deferred income tax liability
Inapplicable
27. Statement of Reserve for Impairment of Assets
In CNY
|||||||
|-|-|-|-|-|-|
||Opening book|Increase in the|Decrease in the reporting period||Ending book|
|Items||||||
||balance|reporting period|Reversal|Written-off|balance|
|I. Reserve of bad debts|9,618,144.26|0.00|124,599.99|0.00|9,493,544.27|
|II. Reserve for price falling|30,869,223.10|2,755,108.79|||33,624,331.89|
|of inventories||||||
|V. Provision for impairment||0.00|||300,000.00|
||300,000.00||0.00|0.00||
|of long-term equity||||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||
|-|-|-|-|-|-|
|investments||||||
|VI. Provision for impairment|0.00|0.00|||0.00|
||||0.00|0.00||
|of investment property||||||
|XIII. Provision for|||||1,735,756.48|
||1,735,756.48|0.00|0.00|0.00||
|impairment of goodwill||||||
|Total|42,523,123.84|2,755,108.79|124,599.99|0.00|45,153,632.64|

 Note to the statement of impairment of assets
Inapplicable
28. Other non-current assets
In CNY
||||
|-|-|-|
|||Beginning of the reporting|
|Items|End of the reporting period||
|||period|
|China Tenth Metallurgy Group Limited|||
||0.00|10,976,867.85|
|Corporation|||
|Shentai Real Estate Development|||
||31,500,000.00|21,500,000.00|
|Co., Ltd.|||
|Total|31,500,000.00|32,476,867.85|

 Note to other non-current assets
Inapplicable
29. Short-term Borrowings
(1) Classification of Short-term Borrowings
In CNY
||||
|-|-|-|
|||Beginning of the reporting|
|Items|End of the Reporting Period||
|||period|
|Secured borrowings|517,000,000.00|710,000,000.00|
|Credit borrowings|363,000,000.00|313,000,000.00|
|Total|880,000,000.00|1,023,000,000.00|

 Note to classification of the short-term borrowings
Note: For theCompany’s borrowings amounting to CNY 250,000,000.00, HARMONY has offered guarantee while forHARMONY’s borrowings amounting to CNY 267,000,000.00, the Company offered guarantee.
(2) Short term borrowings already due but remaining outstanding
Inapplicable
30. Trading financial liabilities
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report 31. Notes Payable
Inapplicable
32. Accounts payable
(1) About accounts payable
In CNY
||||
|-|-|-|
|||Beginning of the reporting|
|Items|End of the Reporting Period||
|||period|
|Trade accounts payable|146,599,176.69|210,748,187.96|
|Payables for materials|48,313,171.04|11,388,092.75|
|Engineering warranty fee payable|0.00|211,339.76|
|Total|194,912,347.73|222,347,620.47|

 (2) Accounts payable to the shareholder holding over5% (including5%) of theCompany’s voting shares in the reporting period
Inapplicable
(3) Statement of big accounts payable with age exceeding 1 year
||||
|-|-|-|
|Creditors’ Names|Amount|Causes of outstanding|
||316,709.55|未开具发票|
||104,953.85|未开具发票|
||83,760.68|未开具发票|
|Total|505,424.08||

33. Advance Receipts
(1) About advance receipts
In CNY
||||
|-|-|-|
|||Beginning of the reporting|
|Items|End of the Reporting Period||
|||period|
|Trade advance receipt|16,871,862.79|9,667,278.30|
|Total|16,871,862.79|9,667,278.30|

 (2) Advance receipts from the shareholder holding over5% (including5%) of theCompany’s voting shares in the reporting period
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report (3) Note to the big advance receipts with age exceeding 1 year
Inapplicable
34. Salaries payable to employees
In CNY
||||||
|-|-|-|-|-|
||Opening book|Increase in the|Decrease in the|Ending book|
|Items|||||
||balance|reporting period|reporting period|balance|
|I. Salaries,|||||
|bonus,|||||
||30,902,945.51|175,898,791.25|189,763,913.84|17,037,822.92|
|allowance and|||||
|subsidy|||||
|II. Staff’s|||||
||0.00|4,733,968.49|4,733,968.49|0.00|
|Welfare|||||
|III. Social|||||
||0.00|22,470,506.91|22,470,506.91|0.00|
|security|||||
|Including: 1.|||||
|Medical|||||
||0.00|5,617,082.97|5,617,082.97|0.00|
|insurance|||||
|premium|||||
|2. Basic|||||
|endowment|||||
||0.00|14,252,252.43|14,252,252.43|0.00|
|insurance|||||
|premium|||||
|3. Contribution|||||
|to the annuity|0.00|0.00|0.00|0.00|
|scheme|||||
|4.|||||
|Unemployment|||||
||0.00|1,027,047.48|1,027,047.48|0.00|
|insurance|||||
|premium|||||
|5. Occupational|||||
|insurance|0.00|278,304.83|278,304.83|0.00|
|premium|||||
|6. Maternity|||||
|insurance|0.00|885,781.96|885,781.96|0.00|
|premium|||||
|7. Others|0.00|410,037.24|410,037.24|0.00|
|IV. Public|||||
|reserve for|0.00|6,617,256.26|6,617,256.26|0.00|
|housing|||||
|V. of dismissal|0.00|0.00|0.00|0.00|
|VI. Others|270,866.64|3,754,254.80|3,712,587.00|312,534.44|
|Where: 1. Trade|270,866.64|3,606,927.77|3,565,259.97|312,534.44|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||||
|-|-|-|-|-|
|union and|||||
|employee’s|||||
|education|||||
|budget|||||
|2. Others|0.00|147,327.03|147,327.03|0.00|
|Total|31,173,812.15|213,474,777.71|227,298,232.50|17,350,357.36|

 Of theemployees’ salaries payable, the amount of the arrears was CNY 0.00.
The amount of the trade union andemployees’ education budget was CNY 3,606,927.77, the amount of the non-monetary welfare was CNY 0.00 and the compensation given due to discharge of the labor relations was CNY 0.00.
Predicted pay time, amount, etc. of thestaff’s salaries payable:
The Group predicted that thestaff’s salaries payable not provided at year end shall be distributed in the next fiscal year.
35. Payable Taxes
In CNY
||||
|-|-|-|
|||Beginning of the reporting|
|Items|End of the Reporting Period||
|||period|
|Value-added tax|35,725,128.24|23,538,538.96|
|Consumption tax|0.00|161,657.78|
|Business tax|613,151.49|701,932.65|
|Enterprise income tax|38,921,130.51|30,923,761.70|
|Individual income tax|634,643.59|698,803.51|
|Urban maintenance and construction tax|534,923.27|389,481.45|
|Property tax|287,520.10|257,112.75|
|Education surcharge|246,603.82|207,011.67|
|Stamp tax|246,902.69|293,628.46|
|Dyke protection surcharge|38,436.04|34,037.50|
|Others|210,357.91|422,208.83|
|Total|77,458,797.66|57,628,175.26|

 Note to the taxes payable: in case the local taxation authority approved the taxable income between the branch companies and branch factories are mutually adjustable, it is necessary to specify the process of tax calculation.
Inapplicable
36. Interest payable
In CNY
||||
|-|-|-|
|||Beginning of the reporting|
|Items|End of the Reporting Period||
|||period|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|Interest of enterprise bonds|6,720,000.00|16,800,000.00|
|Interest payable of the short trm loans|2,487,600.91|2,622,859.82|
|Total|9,207,600.91|19,422,859.82|

 Note to the interest payable
Inapplicable
37. Dividend payable
In CNY
|||||
|-|-|-|-|
||End of the reporting|Beginning of the|Cause of failure in payment|
|Description||||
||period|reporting period|after one year overdue|
|Dividend for common shares||||
||39,276,787.00|0.00||
|payable||||
|Total|39,276,787.00||--|

Note to dividend payable
Inapplicable
38. Other Payables
(1) About other payables
In CNY
||||
|-|-|-|
|||Beginning of the reporting|
|Items|End of the Reporting Period||
|||period|
|Within a year|177,441,484.33|20,229,108.51|
|1 to 2 years|2,144,365.54|8,749,189.38|
|2 to 3 years|4,024,477.15|694,894.09|
|Over 3 years|7,774,496.78|8,781,742.32|
|Total|191,384,823.80|38,454,934.30|

 (2) Of the other payables, the amount due to the shareholder holding over5% (including5%) of theCompany’s voting shares in the reporting period
In CNY
||||
|-|-|-|
|||Beginning of the reporting|
|Organization name|End of the reporting period||
|||period|
|AVIC International Holdings Limited|150,000,000.00|0.00|
|Total|150,000,000.00|0.00|

 (3) Note to other payables with big amount with age exceeding 1 year
|||||
|-|-|-|-|
|Creditors’ Names|Amount|Cause of|Will it be repaid after|
|||outstanding|the reporting day?|

FIYTA Holdings Ltd. 2014 Semi-Annual Report Shenzhen Tencent Computer System Co., Ltd. 5,142,001.36 Still in lease No
term
|||||
|-|-|-|-|
||811,590.00|Still in leaseterm|No|
||424,800.00|Still in leaseterm|No|
||414,630.00|Still in leaseterm|No|
||375,144.00|Still in leaseterm|No|
||349,692.00|Still in leaseterm|No|
||334,880.00|Still in leaseterm|No|
||318,491.60|Still in leaseterm|No|
||301,644.00|Still in leaseterm|No|
||221,712.00|Still in leaseterm|No|
||208,304.00|Still in leaseterm|No|
|Total|8,902,888.96|-|-|

(4) Description of other payables with bigger amount
|||||
|-|-|-|-|
|Creditors’ Names|Amount|Cause of|Will it be repaid after|
|||outstanding|the reporting day?|
||5,142,001.36|Still in leaseterm|No|
||811,590.00|Still in leaseterm|No|
||424,800.00|Still in leaseterm|No|
||414,630.00|Still in leaseterm|No|
||375,144.00|Still in leaseterm|No|
||349,692.00|Still in leaseterm|No|
||334,880.00|Still in leaseterm|No|

FIYTA Holdings Ltd. 2014 Semi-Annual Report Shenzhen Orient Boiler Control Co.,Ltd. 318,491.60 Still in lease No
term
|||||
|-|-|-|-|
||301,644.00|Still in leaseterm|No|
||221,712.00|Still in leaseterm|No|
||208,304.00|Still in leaseterm|No|
|Total|8,902,888.96|-|-|

39. Predicted liabilities
Inapplicable
40. Non-current liabilities due within a year
(1) About non-current liabilities due within a year
In CNY
||||
|-|-|-|
|Items|End of the Reporting Period|Beginning of the reporting period|
|Long-term loan due within 1 year|39,695,000.00|39,310,000.00|
|Total|39,695,000.00|39,310,000.00|

 (2) Long-term loan due within one year
Long-term loan due within one year
In CNY
||||
|-|-|-|
|Items|End of the Reporting Period|Beginning of the reporting period|
|Secured loan|39,695,000.00|39,310,000.00|
|Total|39,695,000.00|39,310,000.00|

 Of the long term loan due within a year, amount of the overdue loans approved for postponing was CNY0.00.
Top five creditors of the long term loan due within 1 year
In CNY
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||||Beginning of the reporting||
||||||End of the Reporting Period||||
||||||||period||
||Loan starting|Loan expiry||Interest rate|||||
|Loan suppliers|||Currency||Amount in|Amount in|Amount in|Amount in|
||date|date||(%)|||||
||||||foreign|function|foreign|function|
||||||currency|currency|currency|currency|
|Bank of China|||||||||
||November9,|October 5,|||||||
|(Hong Kong)|||HK$|3.25%|30,000,000.00|23,817,000.00|30,000,000.00|23,586,000.00|
||2012|2014|||||||
|Limited|||||||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|Bank of China|||||||||
||October 5,|October 5,|||||||
|(Hong Kong)|||HK$|3.25%|20,000,000.00|15,878,000.00|20,000,000.00|15,724,000.00|
||2012|2014|||||||
|Limited|||||||||
|Total|--|--|--|--|--|39,695,000.00|--|39,310,000.00|

 Overdue loan of the long term loans due within 1 year:
Inapplicable
Description of long-term loan due within 1 year
Note: For the long term loan of FIYTA Hong Kong Limited amounting to CNY 39,695,000.00 due within a year, the Company offered guarantee.
(3) Bonds payable due within a year
Inapplicable
(4) Long term payables due within a year
Inapplicable
41. Other current liabilities
In CNY
||||
|-|-|-|
|Items|Ending book balance|Opening book balance|
|Accrued expenses|14,807,907.72|4,924,394.22|
|Total|14,807,907.72|4,924,394.22|

 Note to other current liabilities
Inapplicable
42. Long term loan
(1) Classification of Long Term Loans
In CNY
||||
|-|-|-|
|||Beginning of the reporting|
|Items|End of the Reporting Period||
|||period|
|Collateral Loans|7,174,355.35|7,293,022.01|
|Pledged loan|164,141,928.00|118,291,928.00|
|Secured loan|86,500,000.00|87,000,000.00|
|Credit loan|-39,695,000.00|-39,310,000.00|
|Less: Long-term loan due within 1|218,121,283.35|173,274,950.01|
|year|||
|Total|||

Note to classification of long term loans
FIYTA Holdings Ltd. 2014 Semi-Annual Report Note: AVIC International Holdings Limited offered guarantee for theCompany’s loan amounting to CNY 5,361,928.00 while the Company offered guarantee for the loan borrowed by FIYTA Hong Kong Limited amounting to CNY 158,780,000.00 (including the long term loan due within a year);
As stated in Note 17, the property with the book cost of CNY 26,929,577.43 (book value of CNY 23,265,693.99) was used as the collateral for the long term loan amounting to CNY 7,174,355.35. (2)Top Five Lenders of the Long Term Loans
In CNY
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||End of the Reporting||Beginning of the reporting||
||||||Period||period||
|Loan|Loan|Loan expiry|||||||
||||Currency|Interest rate|Amount in|Amount in|Amount in|Amount in|
|suppliers|starting date|date|||||||
||||||foreign|function|foreign|function|
||||||currency|currency|currency|currency|
|Bank of|||||||||
|China|November|November|||86,500,000.|86,500,000.|87,000,000.|87,000,000.|
||||CNY|6.40%|||||
|Shenzhen|8, 2013|7, 2018|||00|00|00|00|
|Branch|||||||||
|The|||||||||
|Export-Impo|||||||||
|rt Bank of|December|December|||||||
||||CNY|6.06%|361,928.00|361,928.00|361,928.00|361,928.00|
|China|24, 2013|24, 2023|||||||
|Shenzhen|||||||||
|Branch|||||||||
|The|||||||||
|Export-Impo|||||||||
|rt Bank of|January 15,|December|||5,000,000.0|5,000,000.0|5,000,000.0||
||||CNY|6.06%|||||
|China|2014|24, 2023|||0|0|0||
|Shenzhen|||||||||
|Branch|||||||||
|Bank of|||||||||
|China (Hong|July 11,|July 11,|||50,000,000.|39,695,000.|50,000,000.|39,310,000.|
||||HK$|3.00%|||||
|Kong)|2013|2016|||00|00|00|00|
|Limited|||||||||
|Bank of|||||||||
|China (Hong|August 5,|August 5,|||50,000,000.|39,695,000.|50,000,000.|39,310,000.|
||||HK$|3.00%|||||
|Kong)|2013|2016|||00|00|00|00|
|Limited|||||||||
|Bank of|||||||||
|China (Hong|January 1,|July 11,|||20,000,000.|15,878,000.|||
||||HK$|3.00%|||0.00|0.00|
|Kong)|2014|2016|||00|00|||
|Limited|||||||||
|Bank of|January 27,|July 11,|HK$|3.00%|10,000,000.|7,939,000.0|0.00|0.00|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|China (Hong|2014|2016|||00|0|||
|Kong)|||||||||
|Limited|||||||||
|Bank of|||||||||
|China (Hong|March 3,|January 11,|||20,000,000.|15,878,000.|||
||||HK$|3.00%|||0.00|0.00|
|Kong)|2014|2017|||00|00|||
|Limited|||||||||
|China|||||||||
|Constructio|December|December|||||1,018,954.48||
||||HK$|4.25%|918,311.94|729,047.85||801,102.01|
|n Bank|30, 2010|30, 2017|||||||
|(Asia)|||||||||
|Dettes|||||||||
||November|November||||6,445,307.5||6,491,920.0|
|bancaires à|||SF|3.00%|925,000.00||950,000.00||
||11, 2012|11, 2032||||0||0|
|long terme|||||||||
|||||||218,121,283||173,274,950|
|Total|--|--|--|--|--||--||
|||||||.35||.01|

 Note to the long term loans: For the long term loans whose overdue loan has realized formation of extension, it is necessary to specify the conditions, principal, interest, predicted repayment arrangement, etc. of the extension.
Inapplicable
43. Bonds payable
In CNY
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||||||Interest|Endingbalance|
||||||Interest|Accrued|Interest paid|||
|||||||||payable at||
|||||Amount|payable at|interest in the|in the|||
|Bond name|Par value|Issuing date|Term|||||end of the||
|||||issued|beginning|reporting|reporting|||
|||||||||reporting||
|||||||period|period|||
|||||||||period||
|12YADABON|400,000,000.|February 27,||400,000,000.|16,800,000.0|10,080,000.0|20,160,000.0||398,244,033.76|
||||3+2 years|||||6,720,000.00||
|D|00|2013||00|0|0|0|||

 Note to the bonds payable, including the conditions and time of conversion of the convertible company bonds into shares
Inapplicable
44. Long term accounts payable
(1) Top five creditors of the long term accounts payable
Inapplicable
(2) Statement of the finance lease payables in the long term accounts payable
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report 45. Special accounts payable
Inapplicable
46. Other non-current liabilities
In CNY
||||
|-|-|-|
|Items|Ending book balance|Opening book balance|
|Deferred income|3,430,000.00|2,950,000.00|
|Total|3,430,000.00|2,950,000.00|

 Note to other non-current liabilities
Liabilities in connection with government subsidy
In CNY
||||||||
|-|-|-|-|-|-|-|
|||Amount of|Amount||||
|||allowances|counted to the||||
|||||||Correlation with|
||Opening|newly added|non-operating|Other|Ending||
|Liability Items||||||asset/income|
||balance|in the|income in the|changes|balance||
|||reporting|reporting||||
|||period|period||||
|Special fund for|||||||
|Development of|||||||
|Strategical New||||||Correlation with|
||320,000.00|480,000.00|||800,000.00||
|Industries in||||||income|
|Shenzhen|||||||
|(Note①)|||||||
|Special fund for|||||||
|development of||||||Correlation with|
||780,000.00||||780,000.00||
|cultural creative||||||income|
|industry (Note②)|||||||
|Research on|||||||
|Electronic Clock|||||||
|Technology for|||||1,200,000.|Correlation with|
||1,200,000.00||||||
|Cockpit of Civil|||||00|income|
|Airplane|||||||
|（Note③）|||||||
|Reward of the|||||||
|||||||Correlation with|
|14th Patent|350,000.00||||350,000.00||
|||||||income|
|Award（Note④）|||||||
|Project of|||||||
|cooperation with|||||||
|manufacturers||||||Correlation with|
||300,000.00||||300,000.00||
|and academic||||||income|
|and research|||||||
|institutions|||||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||||
|-|-|-|-|-|
|(Note⑤)|||||
||||3,430,000.||
|Total|2,950,000.00|480,000.00||--|
||||00||

Note①: It is a special fund for development of strategical new industries according to the Circular on the Fourth Supporting Plan of 2012 for the Special Fund for Development of Strategical New Industries in Shenzhen jointly promulgated by Devlopment and Innovation Commission of Shenzhen Municipality, Science, Industry, Trade and Information Techology Commission of Shenzhen Municipality, Science and Technology Innovation Commission of Shenzhen Municipality and Finance Commission of Shenzhen Municipality Document SHEN FA GAI[2012] No. 1241;
Note②: It is a special fund for theCompany’s “FIYTA PHOTOGRAPHER SERIES WATCH” Project granted by Culture, Sports and Tourism Administration of Shenzhen Municipality according to the Measures for Administration of Special Fund for Development of Cultural Innovation Industry in Shenzhen;
Note③: It is a special fund for the First Technical Development Projects (Up-to-Date Equipment Manufacture) in the Technology Innovation Program with Technology R& D Fund in 2013 sponsored by the Technology Innovation Committee of Shenzhen Municipality and Finance Commission of Shenzhen Municipality according to the Measures for Management of Technology R& D Fund in Shenzhen and the Measures for Administration of the Projects in the Science and Technology Program in Shenzhen; Note④: It is a reward of the patent award granted according to the Circular of Intellectual Property Office of Guangdong Province on Appropriation of the Reward Fund of the 14th China Patent Award (YUE ZHI GUI[2013] No. 165);
Note⑤: It is a project for cooperation with manufacturers and academic and research institutions sponsored by Education Department of Guangdong Province according to Document YUE CAI JIAO[2012] No. 393. The Company was granted the special fund for the technology of nickelless stainless steel technology for human skin contact product applied with the fund for the guidance fund for combination with manufacture, academy and research in year 2012.
47. Share Capital
In CNY
|||||||||
|-|-|-|-|-|-|-|-|
|||Increase/ Decrease (+ / -) resulting from the change in the reporting period||||||
||Beginning of the|||Shares|||End of the|
||reporting period|New issuing|Bonus shares|converted from|Others|Sub-total|Reporting Period|
|||||reserve||||
|Total Shares|392,767,870.00|0.00|0.00|0.00|0.00|0.00|392,767,870.00|

 Note to change of the capital share: In case there existed capital increase or decrease in the reporting
period, it is necessary to disclose the name of the CPAs engaged in the capital verification and the
number of the capital verification report. For a company limited by shares whose operation term was less
than entire 3 years, it was necessary to specify its net assets in the year prior to incorporation. The
FIYTA Holdings Ltd. 2014 Semi-Annual Report overall change of a company limited by shares is the capital verification which should be specified at the time of incorporation.
Inapplicable
48. Treasury stock
Inapplicable
49. Special reserve
Inapplicable
50. Capital reserve
In CNY
||||||
|-|-|-|-|-|
|||||End of the|
||Beginning of the|Increase in the|Decrease in the||
|Items||||Reporting|
||reporting period|reporting period|reporting period||
|||||Period|
|Capital premium (capital|||||
||511,014,504.13|0.00|0.00|511,014,504.13|
|stock premium)|||||
|Other capital reserve|14,492,448.65|0.00|0.00|14,492,448.65|
|Total|525,506,952.78|0.00|0.00|525,506,952.78|

 Note to capital reserve
Inapplicable
51. Surplus reserve
In CNY
||||||
|-|-|-|-|-|
|||||End of the|
||Beginning of the|Increase in the|Decrease in the||
|Items||||Reporting|
||reporting period|reporting period|reporting period||
|||||Period|
|Statutory surplus reserve|94,729,200.20|0.00|0.00|94,729,200.20|
|Discretionary surplus|||||
||61,984,894.00|0.00|0.00|61,984,894.00|
|reserve|||||
|Reserve fund|0.00|0.00|0.00|0.00|
|Enterprise development|||||
||0.00|0.00|0.00|0.00|
|fund|||||
|Others|0.00|0.00|0.00|0.00|
|Total|156,714,094.20|0.00|0.00|156,714,094.20|

 Note to the surplus reserve: in case of conversion of surplus reserve into share capital, making up losses or distribution of dividend, the relevant resolutions should be specified.
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report 52. General risk reserve
Inapplicable
53. Retained earnings
In CNY
||||
|-|-|-|
|||Provision or|
|Items|Amount|distribution|
|||proportions|
|Before adjustment: Retained earnings|||
||469,706,600.67|--|
|at the end of the previous year|||
|Retained earnings at year beginning|469,706,600.67||
|||--|
|after adjustment|||
|Plus: Net profit attributable to the|||
|parent company’s owner in the report|88,283,873.10|--|
|period|||
|Dividend for common shares payable|39,276,787.00||
|Retained earnings at the end of the|518,713,686.77||
|||--|
|reporting period|||

Adjustment of retained earnings at year beginning:
1) As retroactive adjustment was made according to the Enterprise Accounting Standards and its relevant new provisions, the retained earnings at year beginning was influenced by CNY 0.00.
2) Due to change of the accounting policy, the retained earnings at year beginning was influenced by CNY 0.00.
3) Due to correction of material accounting errors, the retained earnings at year beginning was
influenced by CNY 0.00.
4) Due to change of the consolidation scope caused by the same control, the retained earnings at year beginning was influenced by CNY-16,139,115.49.
5) Total of other adjustments influencing the retained earnings at year beginning: CNY 0.00.
Note to the retained earngings: For an IPO company, should the accumulated profit before IPO be shared by new and old shareholders through resolution of theshareholders’ general meeting, it should be specified; should the accumulated profit before IPO be distributed and exclusively shared by the old shareholders before IPO through resolution of theshareholders’ general meeting, the Company should
disclose explicitly the amount of the profit in the dividend shared by the medium and old shareholders.
FIYTA Holdings Ltd. 2014 Semi-Annual Report 54. Operating revenues and costs
(1) Operating revenues and Costs
In CNY
||||
|-|-|-|
||Amount incurred in the reporting|Amount incurred in the previous|
|Items|||
||period|period|
|Revenue from principal business|1,628,150,096.74|1,493,827,814.22|
|Revenue from other business|14,464,694.23|14,525,952.64|
|Operating costs|1,038,060,709.77|970,869,666.64|

 (2) Principal Businesses Based on Sectors
In CNY
||||||
|-|-|-|-|-|
||Amount incurred in the reporting||Amount incurred in the previous||
|Sectors|||||
||period||period||
||Operating||Operating||
|||Operating costs||Operating costs|
||revenue||revenue||
|Commerce|1,164,509,801.05|879,130,610.80|1,133,437,634.12|847,739,810.91|
|Industry|420,802,528.52|148,417,710.07|321,175,473.86|110,740,242.66|
|Property lease|42,837,767.17|6,368,580.17|39,214,706.24|6,743,346.45|
|Total|1,628,150,096.74|1,033,916,901.04|1,493,827,814.22|965,223,400.02|

 (3) Principal Businesses Based on Products
In CNY
||||||
|-|-|-|-|-|
||Amount incurred in the reporting||Amount incurred in the previous||
||period||period||
|Description of Products|||||
||Operating||Operating||
|||Operating costs||Operating costs|
||revenue||revenue||
|Sales of famous brand|||||
||1,164,509,801.05|879,130,610.80|1,133,437,634.12|847,739,810.91|
|watches|||||
|Manufacture and sales of|||||
||391,786,607.01|131,829,910.71|309,503,274.43|104,364,504.14|
|FIYTA watches|||||
|Property lease|42,837,767.17|6,368,580.17|39,214,706.24|6,743,346.45|
|Precision machining|29,015,921.51|16,587,799.36|11,672,199.43|6,375,738.52|
|Total|1,628,150,096.74|1,033,916,901.04|1,493,827,814.22|965,223,400.02|

(4) Principal Businesses Based on Regions
In CNY
FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||||
|-|-|-|-|-|
||Amount incurred in the reporting||Amount incurred in the previous||
|Regions|||||
||period||period||
||Operating||Operating||
|||Operating costs||Operating costs|
||revenue||revenue||
|Northeast China|152,503,099.71|106,837,154.05|130,071,970.42|95,160,184.44|
|North China|241,303,219.12|174,784,558.99|290,411,310.16|218,987,802.61|
|Northwest China|287,448,335.94|206,860,118.69|270,095,282.36|199,716,950.98|
|Southwest China|164,673,874.58|114,716,453.05|137,226,801.31|98,473,472.78|
|East China|219,417,606.86|149,575,845.53|178,523,905.64|125,133,429.43|
|South China|562,803,960.53|281,142,770.73|487,498,544.33|227,751,559.78|
|Total|1,628,150,096.74|1,033,916,901.04|1,493,827,814.22|965,223,400.02|

 (5) Sales Income from Top Five Customers
In CNY
||||
|-|-|-|
|Description of the|Revenue from principal|Proportion in the Company’s total sales|
|Customers|business|income (%)|
|Yongan General|||
||34,030,331.44|2.07%|
|Merchandise Co., Ltd.|||
|Xi’an Kaiyuan Shopping|||
||29,318,506.46|1.78%|
|Mall Co., Ltd.|||
|Fuzhou Ocean Department|||
||23,605,162.26|1.44%|
|Store Co., Ltd.|||
|Jiangxi Baisheng|||
|Zhongshancheng General|23,446,825.68|1.43%|
|Merchandise Co., Ltd.|||
|Heiwado (China) Limited|22,989,284.14|1.40%|
|Total|133,390,109.98|8.12%|

 Note to the operation revenues
Inapplicable
55. Income from Contract Projects
In CNY
|||||||
|-|-|-|-|-|-|
|||||Accumulative||
|Contract with fixed|||Accumulative cost|gross profit already|Amount already|
||Contract project|Amount||||
|cost|||already incurred|confirmed (loss|settled|
|||||stated with “-”||
|||||Accumulative||
||||Accumulative cost|gross profit already|Amount already|
|Cost-plus contract|Contract project|Amount||||
||||already incurred|confirmed (loss|settled|
|||||stated with “-”||

Note to the contract project
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report 56. Business Taxes and Surcharges
In CNY
|||||
|-|-|-|-|
||Amount incurred in|Amount incurred in||
|Items|||Taxation Rate|
||the reporting period|the previous period||
||||The Company and its|
||||subsidiaries located in PRC|
||||Mainland pay taxable|
|Consumption tax|43,350.43|450,766.66|consumption tax at 20% of the|
||||tax base for the high grade|
||||watches imported or produced|
||||by themselves.|
||||The Company and its|
||||subsidiaries located in PRC|
||||Mainland calculate and pay|
||||taxes for the income from|
|Business tax|2,612,300.80|2,644,269.59||
||||housing lease, supply labor|
||||services and royalty of the|
||||demised assets at the rate of|
||||5%.|
||||The Company and its|
||||subsidiaries located in|
||||Shenzhen calculate and pay|
||||their urban maintenance and|
||||construction tax at 1% of the|
||||turnover tax actually paid|
|Urban maintenance and||||
||4,168,538.63|3,566,290.79|before December 1, 2010 and|
|construction tax||||
||||7% of the turnover tax actually|
||||paid commencing from|
||||December 1, 2010; the|
||||subsidiaries outside Shenzhen|
||||calculate and pay the same at|
||||7%.|
||||The Company and its|
||||subsidiaries located in PRC|
||||Mainland calculate and pay|
||||education surcharge at 3% of|
||||the turnover tax; according to|
||||the Circular of the General|
|Education surcharge|2,929,387.82|2,399,990.73||
||||Office of Shenzhen Municipal|
||||People’s Government on|
||||Printing and Issuing the|
||||Provisional Measures for|
||||Administration of Collection of|
||||Local Education Surcharge in|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||
|-|-|-|-|
||||Shenzhen, they pay the local|
||||education surcharge at 2% of|
||||the turnover tax actually paid|
||||commencing from January 1,|
||||2011.|
|Others|561,139.36|537,501.80||
|Total|10,314,717.04|9,598,819.57|--|

Note to business taxes and surcharges
Inapplicable
57. Sales costs
In CNY
||||
|-|-|-|
||Amount incurred in the reporting|Amount incurred in the previous|
|Items|||
||period|period|
|Wages|109,456,820.30|95,425,585.46|
|Long-term expenses to be|||
||44,261,587.02|40,071,228.64|
|apportioned|||
|Rental|40,076,786.07|36,106,141.39|
|Market promotion|35,445,353.18|34,348,587.79|
|Shopping mall expenses|23,862,707.42|21,675,500.79|
|Advertisement|23,359,757.65|21,704,181.71|
|Labor insurance|15,913,522.74|14,991,352.99|
|Exhibition|13,454,428.70|8,487,347.93|
|Packing|6,319,352.09|6,048,382.80|
|Water and electricity|5,848,804.57|6,188,388.83|
|Others|31,762,200.65|30,289,173.53|
|Total|349,761,320.39|315,335,871.86|

 58. Administrative expenses
In CNY
||||
|-|-|-|
||Amount incurred in the reporting|Amount incurred in the previous|
|Items|||
||period|period|
|Wages|46,069,762.57|41,385,108.98|
|R & D costs|7,024,738.13|6,620,694.71|
|Labor insurance|4,287,800.15|4,514,446.62|
|Depreciation|3,764,328.63|3,738,162.30|
|Business travel|3,718,879.68|2,778,620.61|
|Trade union budget|2,031,932.61|1,910,645.98|
|Meeting|1,712,332.00|1,834,405.81|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|Business entertainment|1,541,236.25|1,593,464.97|
|Administrative expenses|1,465,787.27|1,076,165.60|
|Welfares|1,454,302.90|1,458,323.04|
|Others|11,781,092.20|11,313,945.12|
|Total|84,852,192.39|78,223,983.74|

 59. Financial Expenses
In CNY
||||
|-|-|-|
||Amount incurred in the reporting|Amount incurred in the previous|
|Items|||
||period|period|
|Interest payment|47,607,241.57|43,059,131.02|
|Less: interest income|798,950.68|556,505.59|
|Exchange losses|496,600.58|-1,302,644.23|
|Financial service charge|6,074,327.53|6,073,587.41|
|Plus: Collateral charge for loans|0.00|0.00|
|Others|817,459.49|549,840.19|
|Total|54,196,678.49|47,823,408.80|

 60. Income from change of fair value
Inapplicable
61. Return on Investment
(1) Statement of Return on Investment
In CNY
||||
|-|-|-|
||Amount incurred in the|Amount incurred in the|
|Items|||
||reporting period|previous period|
|Return on long term equity investment|||
||-504,563.21|108,440.73|
|based on equity method|||
|Total|-504,563.21|108,440.73|

 (2) Income from long term equity investment calculated based on the cost method
Inapplicable
(3) Income from long term equity investment calculated based on the equity method
In CNY
|||||
|-|-|-|-|
|||Amount incurred|Cause of increase/decrease in|
||Amount incurred in|||
|Investees||in the previous|the report period over the|
||the reporting period|||
|||period|previous period|
|Shanghai Watch Industry Co.,|||The return on investment in|
||-504,563.21|108,440.73||
|Ltd.|||the long term equity of|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||
|-|-|-|-|
||||Shanghai Watch calculated in|
||||the reporting period includes|
||||the portion of the change of|
||||the investee’s profit amounting|
||||to CNY 269,017.17 in the|
||||reporting period and the|
||||initially assessed appreciation|
||||amount totaling CNY|
||||773,580.38 of the investee’s|
||||assets already sold which was|
||||offset in the reporting period.|
|Total|-504,563.21|108,440.73|--|

Note to the return on investment: Should there be material restriction in remitting back of the return on investment, it is necessary to explain the case. Should there be no such material restriction, it is necessary to specify the case also.
Inapplicable
62. Loss from impairment of assets
In CNY
||||
|-|-|-|
||Amount incurred in the|Amount incurred in the|
|Items|||
||reporting period|previous period|
|I. Loss from bad debt|-147,985.53|-42,202.72|
|II. Loss from price falling of inventories|2,755,108.79|5,000,000.00|
|Total|2,607,123.26|4,957,797.28|

 63. Non-operating income
(1) About non-operating income
In CNY
|||||
|-|-|-|-|
||||Amount recorded in|
||Amount incurred in|Amount incurred in the|the non-recurring|
|Items||||
||the reporting period|previous period|gain/loss in the|
||||reporting period|
|Total gains from disposal of||||
||37,755.19|467,975.18|37,755.19|
|non-current asset||||
|Including: Income from disposal of||||
||37,755.19|467,975.18|37,755.19|
|fixed assets||||
|Government subsidies|1,726,500.00|795,493.22|1,726,500.00|
|Others|1,425,727.38|297,969.80|1,425,727.38|
|Total|3,189,982.57|1,561,438.20|3,189,982.57|

FIYTA Holdings Ltd. 2014 Semi-Annual Report Note to non-operating income
Inapplicable
(2) Government subsidy counted to the current gain/loss
In CNY
||||||
|-|-|-|-|-|
|||||Does it belong to|
|Projects enjoying|Amount incurred in|Amount incurred in|Correlation with||
|||||non-recurring|
|the subsidy|the reporting period|the previous period|assets/income||
|||||gain/loss|
|Fund for the second|||||
|financed projects|||||
|with 2013 Special|||||
|Fund for Economic|||||
||||Correlation with||
|Development|100,000.00|||Yes|
||||income||
|provided by|||||
|Finance Bureau of|||||
|Nanshan District|||||
|(Note ①)|||||
|Designated fund for|||||
|development of the|||||
|self-dependent|||||
|innovation industry|||Correlation with||
||531,500.00|||Yes|
|in 2013 provided by|||income||
|Finance Bureau of|||||
|Nanshan District|||||
|(Note ②)|||||
|Subsidy for|||||
|application for|||||
|registration of the|||||
|first trademarks|||||
|outside Mainland|||||
|China in 2014|||Correlation with||
||70,000.00|||Yes|
|provided by Market|||income||
|Supervision|||||
|Administration of|||||
|Shenzhen|||||
|Municipality (Note|||||
|③)|||||
|Subsidy for|||||
|cultivation of the|||||
||||Correlation with||
|local brands of|1,000,000.00|||Yes|
||||income||
|Shenzhen (Note|||||
|③)|||||
|Government|20,000.00||Correlation with|Yes|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||||
|-|-|-|-|-|
|subsidy for|||income||
|exhibition at BASEL|||||
|Watch Expo|||||
|provided by|||||
|Shenzhen Horologe|||||
|Association (Note|||||
|⑤)|||||
|Financial support to|||||
||||Correlation with||
|patent projects|5,000.00|||Yes|
||||income||
|(Note ⑥)|||||
|Grants for|||||
|implementation of|||Correlation with||
|||112,500.00||Yes|
|the standardization|||income||
|strategy|||||
|Special fund for|||||
|cooperation with|||||
|provincial and|||Correlation with||
|||236,000.00||Yes|
|ministrial academic|||income||
|and research|||||
|institutions|||||
|Subsidy for 2011|||||
|provided by|||Correlation with||
|||60,000.00||Yes|
|Shenzhen Horologe|||income||
|Association|||||
|Reward for|||||
|speeding up|||||
|development of|||Correlation with||
|||370,000.00||Yes|
|backbone|||income||
|enterprises in|||||
|Shenzhen|||||
|Fund for market|||||
|promotion of small|||Correlation with||
|||16,993.22||Yes|
|and medium- sized|||income||
|enterprises|||||
|Total|1,726,500.00|795,493.22|--|--|

Note①: It refers to the special fund for economic development obtained according to the Notice on List of Enterprises Enjoying the Support of the Designated Fund for Development of Self-dependent Innovation Industry of Nanshan District in 2013 (Second Batch from the Economic Promotion Bureau) promulgated by the Economic Promotion Bureau of Nanshan District;
Note②: It refers to the designated fund for science and technology obtained according to the Notice on
List of the Second Batch of Projects Enjoying the Support of the Designated Fund for Development of
Self-dependent Innovation Industry of Nanshan District in 2013 (the Part of Science and Technology);
FIYTA Holdings Ltd. 2014 Semi-Annual Report Note③: It refers to the grants for application for registration of the first trademarks outside Mainland China in 2014 provided by Market Supervision Administration of Shenzhen Municipality;
Note④: It refers to the grants for the brand cultivation projects obtained according to the Circular of Economy, Trade and Information Commission of Shenzhen Municipality on List of the Brand Cultivation Projects Enjoying the Grants with the Fund for Progress of Industrial Technology in Year 2013 (SHEN JING MAO XIN XI JI CAI ZI (2013) No. 235);
Note⑤: It refers to the government subsidy for exhibition at BASEL Watch Expo 2013 provided by Shenzhen Horologe Association to the Company;
Note⑥: It refers to the appropriation for application for patents of Shenzhen in 2014 (the first batch) by Market Supervision Administration of Shenzhen Municipality.
64. Non-operating expenses
In CNY
|||||
|-|-|-|-|
||||Amount recorded in|
||Amount incurred in|Amount incurred in|the non-recurring|
|Items||||
||the reporting period|the previous period|gain/loss in the|
||||reporting period|
|Total loss from disposal of the|31,046.62|27,315.73||
|non-current assets||||
|External donation|150,000.00|180,000.00||
|Others|369,594.26|38,870.48||
|Total|550,640.88|246,186.21||

Note to non-operating expenses
Inapplicable
65. Income tax expenses
In CNY
||||
|-|-|-|
||Amount incurred in the|Amount incurred in the|
|Items|||
||reporting period|previous period|
|The income tax in the report period calculated|||
|according to the tax law and the relevant|24,868,386.04|17,674,422.82|
|provisions.|||
|Adjustment of deferred income tax|-8,294,858.73|-3,919,237.05|
|Total|16,573,527.31|13,755,185.77|

66. Process of calculation of basic earnings per share and diluted earnings per share
(1) Statement of the amounts of the basic earnings per share (basice EPS) and diluted earnings per
FIYTA Holdings Ltd. 2014 Semi-Annual Report share (diluted EPS) in different periods.
||||||
|-|-|-|-|-|
||Amount incurred in the report||Amount incurred in the previous year||
|Profit in the reporting|||||
||year||||
|period|||||
||Basic EPS|Diluted EPS|Basic EPS|Diluted EPS|
|Net profit attributable to|0.225|0.225|0.176|0.176|
|the Company’s|||||
|shareholders of|||||
|ordinary shares|||||
|Net profit attributable to|0.219|0.219|0.173|0.173|
|the Company’s|||||
|shareholders of|||||
|ordinary shares less|||||
|non-recurring gain and|||||
|loss|||||

(2) Process of calculation of basic earnings per share and diluted earnings per share
In the report period, there existed no potential ordinary shares with dilution in the Company. Therefore, the diluted earning per share is equal to the basic earning per share.
① In calculating the basic EPS, the current net profit attributable to shareholders of ordinary shares is:
||||
|-|-|-|
|Items|Amount incurred in the|Amount incurred in the|
||report year|previous year|
|Net profit attributable to the shareholders of|88,283,873.10|69,097,419.87|
|ordinary shares|||
|Including: Net profit attributable to continuous|88,283,873.10|69,097,419.87|
|operation|||
|Net profit attributable to the Company’s|86,173,160.01|68,078,232.08|
|shareholders of ordinary shares less|||
|non-recurring gain and loss|||
|Including: Net profit attributable to continuous|86,173,160.01|68,078,232.08|
|operation|||

②In calculating the basic EPS, the denominator is the weighted average of the outstanding ordinary shares and the calculation process is as follows:
||||
|-|-|-|
|Items|Amount incurred in the|Amount incurred in the|
||report year|previous year|
|Number of outstanding ordinary shares at year|392,767,870.00|392,767,870.00|
|beginning|||
|Plus: Weighted number of common shares|-|-|
|issued in the current year|||
|Less: Weighted number of ordinary shares|-|-|
|repurchased in the current year|||
|Weighted number of outstanding ordinary shares|392,767,870.00|392,767,870.00|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||
|-|
|at year end|

67. Other comprehensive income
In CNY
||||
|-|-|-|
|Items|Reporting period|Previous period|
|1. Amount of gain/loss arising from|||
||0.00|0.00|
|available-for-sale financial assets|||
|Less: Influence upon income tax from|||
||0.00|0.00|
|available-for-sale financial assets|||
|Net gain/loss previously recorded in other|||
|comprehensive gains transferred to the current|0.00|0.00|
|gain/loss|||
|Sub-total|0.00|0.00|
|2. The share calculated according to the equity|||
|method and enjoyed in the other comprehensive|0.00|0.00|
|income of the investee|||
|Less: Influence upon the income tax arising from|||
|the share calculated according to the equity|||
||0.00|0.00|
|method and enjoyed in the other comprehensive|||
|income of the investee|||
|Net gain/loss previously recorded in other|||
|comprehensive gains transferred to the current|0.00|0.00|
|gain/loss|||
|Sub-total|0.00|0.00|
|3. Amount of gain/loss arising from the cash flow|||
||0.00|0.00|
|hedge instrument|||
|Less: Influence upon income tax arising from|||
||0.00|0.00|
|the cash flow hedge instrument|||
|Net gain/loss previously recorded in other|||
|comprehensive gains transferred to the current|0.00|0.00|
|gain/loss|||
|Amount of adjustment of the amount transferred|||
||0.00|0.00|
|into the hedge item recognized initially|||
|Sub-total|0.00|0.00|
|4. Converted difference in Foreign Currency|||
||2,263,797.96|-3,563,383.18|
|Statements|||
|Less: Net in disposal of overseas operation|||
||0.00|0.00|
|transferred to the current gain/loss|||
|Sub-total|2,263,797.96|-3,563,383.18|
|5. Others|0.00|0.00|
|Less: Influence upon the income tax arising from|||
|others recorded in the other comprehensive|0.00|0.00|
|income|||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|Net of the gain/loss recorded previously in the|||
|other comprehensive gains transferred to the|0.00|0.00|
|current gain and loss|||
|Sub-total|0.00|0.00|
|Total|2,263,797.96|-3,563,383.18|

 Note to other comprehensive income
Inapplicable
68. Note to the Cash Flow Statement
(1) Other operation related cash received
In CNY
|||
|-|-|
|Items|Amount|
|Promotion|7,525,003.95|
|Government subsidies|1,726,500.00|
|Deposit|1,169,850.00|
|Interest income|798,950.68|
|Reserves|6,000.00|
|Others|4,069,750.36|
|Total|15,296,054.99|

 Note to the other operation related cash received
Inapplicable
(2) Other operation related cash paid
In CNY
|||
|-|-|
|Items|Amount|
|Rental|41,108,746.25|
|Market promotion|24,561,443.68|
|Advertisement|18,622,707.42|
|Shopping mall costs|23,359,757.65|
|Exhibition|9,154,428.70|
|R & D|5,606,420.13|
|Business travel|6,741,403.76|
|Water & power|6,559,696.66|
|Packing|5,848,804.57|
|Office|4,726,973.59|
|Transportation|3,539,130.41|
|Commission for agents|2,237,679.28|
|Conferences & meetings|2,213,714.36|
|Post and communication|1,873,003.47|
|Business entertainment|1,863,620.09|
|Others|2,523,383.87|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||
|-|-|
|Total|160,540,913.89|

 Note to other operation related cash paid
Inapplicable
(3) Other investment related cash received
Inapplicable
(4) Other investment related cash paid
Inapplicable
(5) Other fund-raising related cash received
Inapplicable
(6) Other cash paid for fund raising activities
In CNY
|||
|-|-|
|Items|Amount|
|Investment repayment to minority shareholders|1,400,000.00|
|Payment for issuing L/G|744,375.00|
|Other financing related charges|151,008.00|
|Total|2,295,383.00|

 Note to cash payment for other financing related activities:
During the reporting period, Shenzhen World Watches Center Co., Ltd., one of theCompany’s
subsidiaries completed the procedures for cancellation on May 5, 2014 and recovered the investment capital amounting to CNY 1,400,000.00 and repaid investment capital amounting to CNY 1,400,000.00 to the minority shareholders.
69. Supplemental information of the cash flow statement
(1) Supplemental information of the cash flow statement
In CNY
||||
|-|-|-|
||Amount in the reporting|Amount in the previous|
|Supplemental Information|||
||period|period|
|1. Net cash flows arising from adjustment of|||
||--|--|
|net profit into operating activities:|||
|Net profit|88,383,300.80|69,212,725.92|
|Plus: Provisions for impairment of assets|2,607,123.26|4,957,797.28|
|Depreciation of fixed assets, oil and gas|||
||16,076,871.28|16,007,258.88|
|assets, production based biological asset|||
|Amortization of intangible assets|720,075.39|701,205.67|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|Long-term expenses to be apportioned|50,918,783.48|45,529,420.78|
|Loss (income is stated with “-“) from disposal|||
|of fixed assets, intangible assets and other|-6,708.57|-440,659.45|
|long term assets|||
|Financial expenses (income is stated with “-“)|47,607,241.57|43,059,131.02|
|Investment loss (income is stated with “-“)|504,563.21|-108,440.73|
|Decrease of deferred income tax asset|||
||-8,708,125.05|-1,547,836.39|
|(increase is stated with “-“)|||
|Decrease of inventories (increase is stated|||
||40,945,763.21|-8,000,799.50|
|with “-“)|||
|Decrease of operative items receivable|||
||-89,756,578.05|-25,258,705.56|
|(increase is stated with “-“)|||
|Increase of operative items receivable|||
||-11,293,631.14|-10,116,297.35|
|(decrease is stated with “-“)|||
|Net cash flow arising from operating activities|137,998,679.39|133,994,800.57|
|2. Significant investment and fund-raising|||
|activities not involved in cash income and|--|--|
|expenses:|||
|3. Net change of cash and cash equivalents:|--|--|
|Ending cash balance|159,843,756.99|95,490,125.02|
|Less: Opening cash balance|107,663,110.74|140,420,994.71|
|Net increase in cash and cash equivalents|52,180,646.25|-44,930,869.69|

 (2) Information concerning acquisition or disposal of subsidiaries or other operating units in the reporting period
In CNY
||||
|-|-|-|
||Amount incurred in the|Amount incurred in the|
|Supplemental Information|||
||reporting period|previous period|
|I. Information concerning acquisition of|||
||--|--|
|subsidiaries and other operating units:|||
|3. Net cash paid in acquisition of subsidiaries|0.00|0.00|
|and other operating units|||
|II. Information concerning disposal of|||
||--|--|
|subsidiaries and other operating units:|||
|3. Net cash received from disposal of|0.00|0.00|
|subsidiaries and other operating units|||

(3) Composition of cash and cash equivalents
In CNY
||||
|-|-|-|
|||Beginning of the reporting|
|Items|End of the reporting period||
|||period|
|I. Cash|159,843,756.99|107,663,110.74|
|III. Ending balance of cash and cash|159,843,756.99|107,663,110.74|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||
|-|
|equivalents|

Note to the supplemental information of cash flow statement
Inapplicable
70. Note to items in the statement of change inowner’s equity
Inapplicable
VIII. Accounting treatment of asset securitization business
1. Description of arrangement of the major asset securitization businesses, their accounting treatment and bankruptcy isolation articles
Inapplicable
2. About the special purpose principal with no control power but substantially undertaking theCompany’s risks
Inapplicable
IX. Related parties and related transactions
1. About the Parent Company
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Voting|||
||||||||Proportion||||
|||||||||power|||
||||||||of the||||
|||||||||proportion|||
||||||||Company’s||The||
|||||Legal||||of the|||
||Relationshi|Enterprise|Place of||Business|Registered|shares held||Company’s|Organizatio|
|Parent||||representati||||parent|||
||p|type|Registration||nature|capital|by the||eventual|n Code|
|||||ve:||||company|||
||||||||parent||controller||
|||||||||over the|||
||||||||company||||
|||||||||Company|||
||||||||(%)||||
|||||||||(%)|||
||||||Investing||||||
||||||and||||||
||||||initiating||||||
|AVIC|||||||||||
||||||entities,||||||
|Internationa|Controlling|Company||Wu||1,110,631,9|||||
||||Shenzhen||domestic||41.49%|41.49%|AVIC|27935122-9|
|l Holdings|shareholder|limited||Guangquan||96.00|||||
||||||commerce,||||||
|Limited|||||||||||
||||||supply and||||||
||||||sales of||||||
||||||goods||||||

Note to theCompany’s Parent:
FIYTA Holdings Ltd. 2014 Semi-Annual Report Note: AVIC International Shenzhen Company Limited (AVIC International Shenzhen) holds the equity in AVIC International Holdings Limited by35.63%. AVIC International Shenzhen is a wholly-owned subsidiary of AVIC International Holdings Limited (AVIC International). AVIC directly holds62.52% of the equity in AVIC International. Therefore, theCompany’s eventual controller is AVIC.
2. About the Subsidiaries
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Full Names||||Legal|||Shareholding|Proportion of||
||Subsidiary|Enterprise|Place of||Business|Registered|||Organization|
|of||||representativ|||proportion|voting power||
||type|type|Registration||nature|capital|||Code|
|Subsidiaries||||e:|||(%)|(%)||
||Controlled|Limited||Xu||600,000，||||
|HARMONY|||Shenzhen||Commerce||100.00%|100.00%|279313935|
||subsidiary|liability||Dongsheng||000(CNY)||||
|FIYTA|Controlled|Limited||Xu||10,000,000(||||
||||Shenzhen||Manufacture||100.00%|100.00%|715210802|
|Manufacture|subsidiary|liability||Dongsheng||CNY)||||
|FIYTA Hong|Controlled|Limited||||65,060,000(||||
||||Hong Kong|Lu Bingqiang|Commerce||100.00%|100.00%|37954781|
|Kong Limited|subsidiary|liability||||HKD)||||
|FIYTA|Controlled|Limited||Xu||10,000,000(||||
||||Shenzhen||Manufacture||100.00%|100.00%|69396758X|
|Technology|subsidiary|liability||Dongsheng||CNY)||||
||Controlled|Limited||Xu||5,000,000(C||||
|FIYTA Trade|||Shenzhen||Commerce||100.00%|100.00%|697108950|
||subsidiary|liability||Dongsheng||NY)||||
||Controlled|Limited||Xu||50,000,000(||||
|FIYTA Sales|||Shenzhen||Commerce||100.00%|100.00%|57476869-2|
||subsidiary|liability||Dongsheng||CNY)||||

3. Joint Ventures and Associates
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||Proportion of|||
|||||||Proportion of||||
||||||||the|||
||||Legal|||the shares||||
||Enterprise|Place of||Business|Registered||Company’s||Organization|
|Investees|||representativ|||held by the||Relationship||
||type|Registration||Nature|capital||voting power||Code|
||||e:|||Company||||
||||||||in the|||
|||||||(%)||||
||||||||investee (%)|||
|I. Joint venture||||||||||
|II. Associate||||||||||
|Shanghai||||||||||
|||||Watch||||||
|Watch|Limited||Dong||CNY 15.35|||||
|||Shanghai||production||25.00%|25.00%|Associate|134657657|
|Industry Co.,|liability||Guozhang||million|||||
|||||and sales||||||
|Ltd.||||||||||

4. TheCompany’s other related parties
||||
|-|-|-|
|Other related parties|Relationship with the Company|Organization Code|
|CATIC Property Management Co.|||
||under the control of the same party|19219400-5|
|(CATIC Property)|||
|Shenzhen CATIC Building Technology|under the control of the same party|743201073|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|Co., Ltd.(CATIC Building Technology)|||
|Rainbow Supermarket Co.,|||
||under the control of the same party|618842912|
|Ltd.(Rainbow Supermarket )|||
|Shennan Circuit Co., Ltd.|under the control of the same party|192195761|
|CATIC Real Estate Co., Ltd.（CATIC|||
||under the control of the same party|279340845|
|Real Estate）|||
|Shenzhen Makway Cable TV|||
||under the control of the same party|618810902|
|Equipment Co., Ltd.(Makway)|||
|CATIC Securities Co., Ltd.(CATIC|||
||under the control of the same party|741986153|
|Securities)|||
|Xi’an Tianyue Hotel Co., Ltd.（Tianyue|||
||under the control of the same party|76197033-5|
|Hotel）|||
|Shenzhen CATIC Nanguang Elevator|||
|Engineering Co., Ltd.(CATIC|under the control of the same party|192350741|
|Nanguang)|||
|Shenzhen CATIC City Property|||
|Development Co., Ltd. （CATIC City|under the control of the same party|676667833|
|Property ）|||
|Shenzhen CATIC City Development|||
||under the control of the same party|192194005|
|Co., Ltd.（CATIC City Development）|||
|Shenzhen CATIC Guanlan Real Estate|||
|Development Co., Ltd（. CATIC Guanlan|under the control of the same party|763495945|
|Real Estate）|||
|Shenzhen CATIC Changtai Investment|||
|Development Co.,Ltd.（CATIC|under the control of the same party|732047808|
|Changtai）|||
|Shenzhen CATIC Jiufang Assets|||
|Management Co., Ltd.（CATIC Jiufang|under the control of the same party|580064616|
|Assets）|||
|Ganzhou CATIC Real Estate|||
|Development Co., Ltd.（Ganzhou|under the control of the same party|664794739|
|CATIC Real Estate）|||
|Shenzhen CATIC City Investment Co.,|||
||under the control of the same party|279340845|
|Ltd.（CATIC City Investment）|||
|Chengdu CATIC Real Estate|||
|Development Co., Ltd.（Chengdu|under the control of the same party|66047931X|
|CATIC Real Estate）|||
|CATIC Electronic Measuring|||
|Instruments Co., Ltd（. CATIC Electronic|under the control of the same party|745016111|
|Measuring Instruments）|||
|Shenzhen CATIC Theme Real Estate|||
||under the control of the same party|618811913|
|Co., Ltd.（CATIC Theme Real Estate）|||
|AVIC International Shenzhen Company|||
||holding company|19034036-3|
|Limited|||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|Shenzhen CATIC Enterprise Group|||
||under the control of the same party|-|
|Training Center|||

Note to theCompany’s other related parties
Inapplicable
5. Related transactions
(1) Statement of Commodities Purchased and Labor Services Received
In CNY
||||||||
|-|-|-|-|-|-|-|
||||Amount incurred in the reporting||Amount incurred in the previous||
||||period||period||
|||Pricing of related||Proportion||Proportion|
||Description of Related|transactions and||in the||in the|
|Related Parties|||||||
||Transactions|decision making||amount of||amount of|
||||Amount||Amount||
|||procedures||the similar||the similar|
|||||transaction||transaction|
|||||s (%)||s (%)|
||Property management||||||
|CATIC Property||Negotiated price|765,635.66|100.00%|572,579.12|100.00%|
||fee||||||
|Shenzhen CATIC|||||||
|Enterprise Group|Training fee|Negotiated price|0.00|0.00%|142,437.90|12.54%|
|Training Center|||||||
|Rainbow Supermarket|Shopping mall expenses|Negotiated price|1,531,106.86|6.55%|1,373,419.14|5.36%|

 Statement of Sales of Goods and Supply of Labor Services
In CNY
||||||||
|-|-|-|-|-|-|-|
||||Amount incurred in the reporting||Amount incurred in the previous||
||||period||period||
|||Pricing of related||Proportion||Proportion|
||Description of Related|transactions and||in the||in the|
|Related Parties|||||||
||Transactions|decision making||amount of||amount of|
||||Amount||Amount||
|||procedures||the similar||the similar|
|||||transaction||transaction|
|||||s (%)||s (%)|
|Rainbow Supermarket|Sales of products|Negotiated price|39,858,340.52|2.43%|39,047,964.44|2.57%|
|AVIC|Sales of products|Negotiated price|650,286.32|0.04%|1,328,029.06|0.09%|
|Shennan Circuit Co.,|||||||
||Sales of materials|Negotiated price|15,005,995.58|0.91%|7,357,604.78|0.49%|
|Ltd.|||||||

(2) Related trust/contract
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report (3) Related Leases
Statement of leases
In CNY
||||||||
|-|-|-|-|-|-|-|
|||||||Rental|
||||||Basis for||
|||||Lease||income|
||||Lease starting||determining||
|Lessor|Lessees|Leased asset||termination||recognized in|
||||date||the lease||
|||||date||the reporting|
||||||income||
|||||||period|
|The|CATIC Real||||Negotiated||
|||Property|May 16, 2012|May 15, 2015||754,416.00|
|Company|Estate||||price||
|The|CATIC||October 1,|September|Negotiated||
|||Property||||1,330,272.00|
|Company|Property||2012|30, 2015|price||
|The|CATIC||September|September|Negotiated||
|||Property||||536,760.00|
|Company|Securities||16, 2013|16, 2014|price||
|The|CATIC City||||Negotiated||
|||Property|May 16, 2012|May 16, 2015||11,160.00|
|Company|Property||||price||
|The|CATIC City||||Negotiated||
|||Property|May 16, 2012|May 16, 2015||11,160.00|
|Company|Development||||price||
||CATIC||||||
|The|||||Negotiated||
||Guanlan Real|Property|May 16, 2012|May 16, 2015||44,640.00|
|Company|||||price||
||Estate||||||
|The|CATIC||||Negotiated||
|||Property|May 16, 2012|May 16, 2015||642,816.00|
|Company|Changtai||||price||
|The|||January 1,|December 31,|Negotiated||
||Tianyue Hotel|Property||||2,708,299.98|
|Company|||2014|2014|price||
|The|Rainbow||||Negotiated||
|||Property|May 1, 2013|April 30, 2016||224,280.02|
|Company|Supermarket||||price||
|The|CATIC City||||Negotiated||
|||Property|May 16, 2012|May 15, 2015||45,012.00|
|Company|Investment||||price||
||CATIC||||||
|The||||June 30,|Negotiated||
||Jiufang|Property|July 1, 2013|||181,818.00|
|Company||||2016|price||
||Assets||||||
||CATIC||||||
|The|||||Negotiated||
||Theme Real|Property|May 16, 2012|May 15, 2015||472,812.00|
|Company|||||price||
||Estate||||||
||AVIC||||||
|The|||January 1,|February 28,|Negotiated||
||International|Property||||210,270.00|
|Company|||2014|2014|price||
||Shenzhen||||||

Statement of Tenancies
In CNY
||||||||
|-|-|-|-|-|-|-|
||||Lease starting|Lease|Basis for|Rent|
|Lessor|Lessees|Leased asset|||||
||||date|termination|determining|recognized in|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||||||
|-|-|-|-|-|-|-|
|||||date|the rent|the reporting|
|||||||period|
|Ganzhou|||||||
||||August 1,|August 30,|Negotiated||
|CATIC Real|HARMONY|Shop||||501,799.74|
||||2012|2017|price||
|Estate|||||||
|Chengdu|||||||
|CATIC Real|||October 28,|October 27,|Negotiated||
||HARMONY|Shop||||404,994.68|
|Estate Co.,|||2011|2016|price||
|Ltd.|||||||

Description of related leases
Inapplicable
(4) Related guarantee
In CNY
|||||||
|-|-|-|-|-|-|
||||||Has the|
|||Amount in|Guarantee|Expiry of||
|Guarantor|Guarantee||||guarantee been|
|||guarantee|starting date|guarantee||
||||||implemented?|
||||February 25,|February 24,||
|The Company|HARMONY|60,000,000.00|||No|
||||2014|2015||
|The Company|HARMONY|50,000,000.00|July 18, 2013|July 17, 2014|No|
|||||December 12,||
|The Company|HARMONY|50,000,000.00|June 13, 2014||No|
|||||2014||
||||February 27,|February 26,||
|The Company|HARMONY|20,000,000.00|||No|
||||2014|2015||
|||||September 5,||
|The Company|HARMONY|30,000,000.00|March 6, 2014||No|
|||||2014||
|The Company|HARMONY|30,000,000.00|May 9, 2014|May 8, 2015|No|
|The Company|HARMONY|27,000,000.00|May 27, 2014|May 26, 2015|No|
||||December 30,|December 29,||
|The Company|HARMONY|100,000,000.00|||No|
||||2013|2014||
||FIYTA Hong||November 9,|||
|The Company||23,817,000.00||October 5, 2014|No|
||Kong Limited||2012|||
||FIYTA Hong|||||
|The Company||15,878,000.00|October 5, 2012|October 5, 2014|No|
||Kong Limited|||||
||FIYTA Hong|||||
|The Company||39,695,000.00|July 15, 2013|July 11, 2016|No|
||Kong Limited|||||
||FIYTA Hong|||||
|The Company||39,695,000.00|August 5, 2013|August 5, 2016|No|
||Kong Limited|||||
||FIYTA Hong|||||
|The Company||15,878,000.00|January 1, 2014|J uly 11, 2016|No|
||Kong Limited|||||
||FIYTA Hong||January 27,|||
|The Company||7,939,000.00||July 11, 2016|No|
||Kong Limited||2014|||
|The Company|FIYTA Hong|15,878,000.00|March 3, 2014|January 11,|No|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||
|-|-|-|-|-|-|
||Kong Limited|||2017||
|HARMONY|The Company|70,000,000.00|October 8, 2013|October 7, 2014|No|
||||February 12,|February 11,||
|HARMONY|The Company|40,000,000.00|||No|
||||2014|2015||
||||February 19,|February 18,||
|HARMONY|The Company|90,000,000.00|||No|
||||2014|2015||
||||September 24,|September 23,||
|HARMONY|The Company|50,000,000.00|||No|
||||2013|2014||
|AVIC||||||
|International|||December 24,|December 24,||
||The Company|361,928.00|||No|
|Holdings|||2013|2023||
|Limited||||||
|AVIC||||||
|International|||January 15,|December 24,||
||The Company|5,000,000.00|||No|
|Holdings|||2014|2023||
|Limited||||||
|CATIC|||February 27,|February 26,||
||The Company|400,000,000.00|||No|
|Shenzhen|||2013|2016||

Note to the related guarantees
Inapplicable
(5) Lending and Borrowing with Related Parties
In CNY
||||||
|-|-|-|-|-|
|Related party|Amount involved|Starting date|Expiry date|Note|
|Borrowing|||||
|AVIC International|||||
||150,000,000.00|May 26, 2014|May 22, 2015||
|Holdings Limited|||||
|Lending|||||

(6) Assets assignment and debt restructuring transactions with the related parties
Inapplicable
(7) Other related transactions
Inapplicable
6. Receivables from and Payables to the Related Parties
Accounts receivable from the related parties
In CNY
FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||
|-|-|-|-|-|-|
|||||Beginning of the reporting||
|||End of the reporting period||||
|||||period||
|Items|Related Parties|||||
||||Bad debt||Bad debt|
|||Book balance||Book balance||
||||reserve||reserve|
||Rainbow|||||
|Accounts receivable||4,085,198.33|204,259.92|2,154,095.08|107,704.75|
||Supermarket|||||
||AVIC|630,779.00|31,538.95|644,059.00|32,202.95|
||Shennan Circuit|||||
|||2,305,125.44|115,256.27|10,884,289.63|544,214.48|
||Co., Ltd.|||||
||CATIC Electronic|||||
||Measuring|34,216.60|1,710.83|197,396.00|9,869.80|
||Instruments|||||
||Total|7,055,319.37|352,765.97|13,879,839.71|693,991.98|
||Shennan Circuit|||||
|Notes receivable||16,200,559.00|0.00|7,000,000.00|0.00|
||Co., Ltd.|||||
||CATIC Electronic|||||
||Measuring|0.00|0.00|100,000.00|0.00|
||Instruments|||||
||Total|16,200,559.00|0.00|7,100,000.00|0.00|
||Rainbow|||||
|Other receivables||176,429.60|8,821.48|167,856.60|8,392.83|
||Supermarket|||||
||Tianyue Hotel|1,999,999.98|100,000.00|1,750,000.00|87,500.00|
||Shenzhen|||||
||CATIC|||||
|||150,000.00|7,500.00|11,424.70|571.24|
||Enterprise Group|||||
||Training Center|||||
||Chengdu CATIC|||||
||Real Estate Co.,|100,536.00|5,026.80|115,616.40|5,780.82|
||Ltd.|||||
||Ganzhou CATIC|||||
|||122,665.60|6,133.28|122,665.60|6,133.28|
||Real Estate|||||
||CATIC Property|0.00|0.00|6,700.00|335.00|
||Total|2,549,631.18|127,481.56|2,174,263.30|108,713.17|

 Accounts payable to the related parties
In CNY
|||||
|-|-|-|-|
||||Amount at the|
|||Amount at the end of||
|Items|Related Parties||beginning of the|
|||the reporting period||
||||reporting period|
||CATIC Electronic|||
|Account payable||0.00|45,549.40|
||Measuring Instruments|||
||Total|0.00|45,549.40|
|Advance receipt|AVIC|0.00|15,469.00|
||Total|0.00|15,469.00|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||
|-|-|-|-|
||CATIC Building|||
|Other payables||8,227.10|8,227.10|
||Technology|||
||CATIC Nanguang|3,354.90|3,354.90|
||CATIC City Investment|37,700.00|37,700.00|
||CATIC Securities|178,920.00|178,920.00|
||CATIC Real Estate|424,800.00|424,800.00|
||CATIC Changtai|221,712.00|221,712.00|
||Rainbow Supermarket|60,000.00|60,000.00|
||CATIC Jiufang Assets|60,606.00|60,606.00|
||Chengdu CATIC Real|||
|||0.00|4,364.60|
||Estate Co., Ltd.|||
||AVIC International|||
|||150,000,000.00|0.00|
||Holdings Limited|||
||Total|150,995,320.00|999,684.60|

FIYTA Holdings Ltd. 2014 Semi-Annual Report X. Share-based payment
1. General of share-based payment
Inapplicable
2. Share-based payment settled by equity
Inapplicable
3. Share-based payment settled by cash
Inapplicable
4. Share-based payment for services
Inapplicable
5. Amendment and termination of share-based payment
Inapplicable
(XI) Contingencies
1. Contingent liabilities arising from unsettled lawsuits/arbitration and the influence upon the finance
Inapplicable
2. Contingent liabilities resulted from debt guarantee offered by other organizations and the financial influence
Inapplicable
(XII) Commitments
1. Important Commitments
(1) Capital commitment
||||
|-|-|-|
|Items|Year end|Year beginning|
|Already signed but not yet recognized in the|||
|financial statement|||
|- Commitment for purchase/construction of|216,827,942.99|7,117,817.60|
|long term asset|||

FIYTA Holdings Ltd. 2014 Semi-Annual Report (2) Operation lease commitments:
The irrevocable operation lease contracts executed between the Group and external parties by the balance sheet day are as follows:
||||
|-|-|-|
|Items|Year end|Year beginning|
|Minimum rent payment for the irrevocable|||
|operation lease:|||
|1st year after the balance sheet day|19,105,651.01|39,333,248.01|
|2nd year after the balance sheet day|25,091,615.54|25,091,639.54|
|3rd year after the balance sheet day|10,772,387.77|10,776,187.77|
|Subsequent years|6,240,000.00|6,241,600.00|
|Total|61,209,654.32|81,442,675.32|

 2. Implementation of the commitments in the previous period
Inapplicable
XIII. Sequential Events after the Balance Sheet Day
1. Note to important sequential events after the balance sheet day
Inapplicable
2. Note to profit distribution after the balance sheet day
Inapplicable
In CNY
|||
|-|-|
|Profit or dividend to be distributed|39,276,787.00|
|Profit or dividend announced for distribution after||
||39,276,787.00|
|review and approval||

3. Note to other sequential events after the balance sheet day
With approval of the 8th meeting of the Seventh Board of Directors held on February 27, 2014 and 2013 Annual General Meeting held on June 10, 2014, the Company determined the profit distribution plan in 2013 which is summarized as follows: with 392,767,870 shares as at December 31,2013 as the base, the Company was to distribute cash dividend to the whole shareholders at the rate of CNY 1.00 for every 10 shares (with tax inclusive), the total amount of cash dividend to be distributed was CNY
39,276,787.00. The aforesaid profit distribution plan was fully implemented by August 4, 2014.
FIYTA Holdings Ltd. 2014 Semi-Annual Report XIV. Note to Other Important Matters
1. Non-monetary assets exchange
Inapplicable
2. Debt restructuring
Inapplicable
3. Enterprise Consolidation
Inapplicable
4. Lease
Inapplicable
5. Outstanding convertible financial instruments at the end of the reporting period
Inapplicable
6. Assets and liabilities measured based on faire value
In CNY
|||||||
|-|-|-|-|-|-|
|||Gain/loss from|Change of|||
|||||Provision for|Amount at the end|
||Beginning of the|change of fair|accumulative fair|||
|Items||||impairment in the|of the reporting|
||reporting period|value in the|value counted to|||
|||||reporting period|period|
|||reporting period|gain/loss|||
|Financial asset||||||
|Total of the above|0.00|0.00|0.00|0.00|0.00|
|Financial liabilities|0.00|0.00|0.00|0.00|0.00|

 7. Foreign currency financial asset and foreign currency financial liabilities
In CNY
|||||||
|-|-|-|-|-|-|
|||Gain/loss from|Change of|||
|||||Provision for|Amount at the end|
||Beginning of the|change of fair|accumulative fair|||
|Items||||impairment in the|of the reporting|
||reporting period|value in the|value counted to|||
|||||reporting period|period|
|||reporting period|gain/loss|||
|Financial asset||||||
|Subtotal of financial||||||
||0.00|0.00|0.00|0.00|0.00|
|asset||||||
|Financial liability|0.00|0.00|0.00|0.00|0.00|

FIYTA Holdings Ltd. 2014 Semi-Annual Report 8. Main contents and significant change of the annuity plan
Inapplicable
9. Others
Inapplicable
XV. Notes to the principal items on the parentcompany’s financial statements 1. Accounts receivable
(1) Accounts receivable
In CNY
||||||||||
|-|-|-|-|-|-|-|-|-|
||End of the Reporting Period||||Beginning of the reporting period||||
||Book balance||Bad debt reserve||Book balance||Bad debt reserve||
|Categories||Prop|||||||
|||||Propo||Propo||Propo|
||Amount|ortio|Amount||Amount||Amount||
|||||rtion||rtion||rtion|
|||n|||||||
|Accounts receivable for which bad debt reserve has been provided based on the combination|||||||||
|Grouping based on|||||||||
|the accounting age|||||||||
|Grouping of the|219,193,03|100.|||239,193,03|100.0|||
||||0.00|0.00%|||0.00|0.00%|
|designated accounts|9.81|00%|||9.81|0%|||
||219,193,03|100.|||239,193,03|100.0|||
|Subtotal of grouping|||0.00|0.00%|||0.00|0.00%|
||9.81|00%|||9.81|0%|||
||219,193,03||||239,193,03||||
|Total||--|0.00|--||--|0.00|--|
||9.81||||9.81||||

Note to the categories of accounts receivable
Accounts receivable with significant single amount and with reserve for bad debt provided on single item basis at the end of the reporting period
Inapplicable
In grouping, accounts receivable with the reserve for bad debt provided based on the age analysis method.
Inapplicable
In grouping, the account receivable for which the reserve for bad debt provided based on the percentage balance method
Inapplicable
FIYTA Holdings Ltd. 2014 Semi-Annual Report In grouping, the account receivable for which the reserve for bad debt provided based on other method In CNY
||||
|-|-|-|
|Description|Book balance|Bad debt reserve|
|Grouping of the designated|||
||219,193,039.81|0.00|
|accounts|||
|Total|219,193,039.81|0.00|

 Accounts receivable with insignificant single amount but with reserve for bad debt provided on single item basis at the end of the reporting period
Inapplicable
(2) Accounts receivable reversed or recovered in the reporting period
Inapplicable
(3) The accounts receivable actually written-off in the reporting period
Inapplicable
(4) The account receivable from the shareholder holding over5% (including5%) of theCompany’s voting shares in the reporting period
Inapplicable
(5) Nature or description of the other receivables with bigger amount
|||||||
|-|-|-|-|-|-|
||Relationship||||Proportion in the|
|Organization Names|with the|Amount|Year|Nature|total accounts|
||Company||||receivable|
||Subsidiary|219,193,039.81|W ithin a year|Tradereceivable|100.00%|
|Total|-|219,193,039.81|-||17.18%|

 (6) Top five debtors of the accounts receivable
In CNY
||||||
|-|-|-|-|-|
|||||Proportion in the total|
||Relationship with the||||
|Organization Names||Amount|Year|accounts receivable|
||Company||||
|||||(%)|
|FIYTA Sales Co., Ltd.|Subsidiary|219,193,039.81|Within a year|100.00%|
|Total|--|219,193,039.81|--|100.00%|

(7) Accounts due from related parties
In CNY
FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||
|-|-|-|-|
||Relationship with theCompany||Proportion in the total|
|Organization Names||Amount||
||||accounts receivable (%)|
|FIYTA Sales Co., Ltd.|Subsidiary|219,193,039.81|100.00%|
|Total|--|219,193,039.81|100.00%|

 (8) Amount of the accounts receivable transferred not in compliance with the conditions of terminating confirmation is CNY 0.00.
(9) For securitization on the assets with accounts receivable as the underlying asset, it is necessary to summarize the relevant transaction arrangement
Inapplicable
2. Other receivables
(1) Other receivables
In CNY
||||||||||
|-|-|-|-|-|-|-|-|-|
||End of the Reporting Period||||Beginning of the reporting period||||
||Book balance||Bad debt reserve||Book balance||Bad debt reserve||
|Categories||Propor||Propor||Propor||Propor|
||Amount|tion|Amount|tion|Amount|tion|Amount|tion|
|||(%)||(%)||(%)||(%)|
|Other receivables for which bad debt reserve has been provided based on the grouping|||||||||
|Grouping based on theaccounting age|||||||||
||2,853,479.08|0.22%|170,331.13|5.97%|2,511,372.60|0.19%|153,225.81|6.10%|
|Grouping of the designatedaccounts||99.78||||99.81|||
||1,272,705,268.80||0.00|0.00%|1,335,273,187.22||0.00|0.00%|
|||%||||%|||
|||100.00||||100.00|||
|Subtotal of grouping|1,275,558,747.88||170,331.13|0.01%|1,337,784,559.82||153,225.81|0.01%|
|||%||||%|||
|Total|1,275,558,747.88|--|170,331.13|--|1,337,784,559.82|--|153,225.81|--|

 Note to categories of other receivables
Other receivables with significant single amount and provision of bad debt reserve on individual basis at the end of the reporting period
Inapplicable
In grouping, other receivables for which the bad debt reserve is provided based on the age analysis In CNY
||||||||
|-|-|-|-|-|-|-|
||End of the Reporting Period|||Beginning of the reporting period|||
||Book balance|||Book balance|||
|Age|||||||
|||Propor|t Bad debt reserve||Proport|Bad debt reserve|
||Amount|||Amount|||
|||ion (%)|||ion (%)||
|Within a year|||||||
|Including:|--|--|--|--|--|--|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||||||
|-|-|-|-|-|-|-|
|Subtotal within||93.87|||91.44||
||2,678,444.25||133,922.21|2,296,287.70||116,816.88|
|a year||%|||%||
|||93.87|||91.44||
|1 to 2 years|2,678,444.25||133,922.21|2,296,287.70||116,816.88|
|||%|||%||
|2 to 3 years|110,000.00|3.85%|11,000.00|110,000.07|4.38%|11,000.01|
|Over 3 years|35,542.50|1.25%|10,662.75|35,542.50|1.41%|10,662.75|
|Total|29,492.33|1.03%|14,746.17|69,542.33|2.77%|14,746.17|
|Total|2,853,479.08|--|170,331.13|2,511,372.60|--|153,225.81|

 In grouping, other account receivable for which reserve for bad debt is provided based on balance percentage
Inapplicable
In grouping, other receivable for which the bad debt reserve is provided based on other method: In CNY
||||
|-|-|-|
|Grouping Description|Book Balance|Bad debt reserve|
|Grouping of the designated accounts|1,272,705,268.80|0.00|
|Total|1,272,705,268.80||

Other receivables with insignificant single amount and provision of bad debt reserve on individual basis at the end of the reporting period
Inapplicable
(2) Other receivables reversed or recovered in the reporting period
Inapplicable
(3) Other receivables actually written-off in the reporting period
Inapplicable
(4) Other receivables from the shareholder holding5% (including5%) of theCompany’s voting shares in the reporting period
Inapplicable
(5) Nature or description of the other payables with bigger amount
|||||||
|-|-|-|-|-|-|
||||||Proportion in|
||Relationship with|||Nature|the total of the|
|Company names||Amount|Years|||
||the Company||||other|
||||||receivables (%)|
|HARMONY|Subsidiary|992,622,894.30|Within a year|current account|77.82%|
|FIYTA Sales|Subsidiary|143,718,187.30|Within a year|current account|11.27%|
|Emile Chouriet Shenzhen|Subsidiary|49,352,735.87|Within a year|current account|3.87%|
|FIYTA Manufacture|Subsidiary|34,815,198.29|Within a year|current account|2.73%|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||
|-|-|-|-|-|-|
|FIYTA Trade|Subsidiary|28,164,323.42|Within a year|current account|2.21%|
|FIYTA Technology|Subsidiary|22,340,388.56|Within a year|current account|1.75%|
|Shenzhen CATIC HotelManagement Co., Ltd.|Controlled by thesame parentcompany|1,999,999.98|Within a year|Rent receivable|0.16%|
|FIYTA Hong Kong Limited|Subsidiary|1,147,471.00|Within a year|current account|0.09%|
|Total|-|1,274,161,198.72|-||99.89%|

(6) Top Five Debtors of the Other Receivables
In CNY
||||||
|-|-|-|-|-|
|||||Proportion in the total|
||Relationship with the||||
|Company names||Amount|Years|of the other receivables|
||Company||||
|||||(%)|
|HARMONY|Subsidiary|992,622,894.30|Within a year|77.82%|
|FIYTA Sales|Subsidiary|143,718,187.30|Within a year|11.27%|
|Emile Chouriet|||||
||Subsidiary|49,352,735.87|Within a year|3.87%|
|Shenzhen|||||
|FIYTA Manufacture|Subsidiary|34,815,198.29|Within a year|2.73%|
|FIYTA Trade|Subsidiary|28,164,323.42|Within a year|2.21%|
|Total|--|1,248,673,339.18|--|97.90%|

 (7) Other receivables from related parties
In CNY
|||||
|-|-|-|-|
||Relationship with the||Proportion in the total of the|
|Company names||Amount||
||Company||other receivables (%)|
|HARMONY|Subsidiary|992,622,894.30|77.82%|
|FIYTA Sales|Subsidiary|143,718,187.30|11.27%|
|Emile Chouriet Shenzhen|Subsidiary|49,352,735.87|3.87%|
|FIYTA Manufacture|Subsidiary|34,815,198.29|2.73%|
|FIYTA Trade|Subsidiary|28,164,323.42|2.21%|
|FIYTA Technology|Subsidiary|22,340,388.56|1.75%|
|Shenzhen CATIC Hotel|Controlled by the same|||
|||1,999,999.98|0.16%|
|Management Co., Ltd.|parent company|||
|FIYTA Hong Kong Limited|Subsidiary|1,147,471.00|0.09%|
|Shenzhen CATIC Group|Controlled by the same|||
|||150,000.00|0.01%|
|Training Center|parent company|||
|Total|--|1,274,311,198.72|99.91%|

FIYTA Holdings Ltd. 2014 Semi-Annual Report (8)Amount of the other receivables transferred not in compliance with the conditions of terminating confirmation is CNY 0.00.
(9) For securitization on the assets of other receivables, it is necessary to summarize the relevant transaction arrangement
Inapplicable
3. Long-term equity investment
In CNY
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Note to||||
|||||||||inconsiste||||
|||||||||nce of||||
|||||||Percentag||||Provision||
||||||||Voting|percentag|||Cash|
|||||||e of equity||||reserve||
|||Initial|||||power|e of equity|||dividend in|
||Accountin||Opening|Increase/D|Ending|in the|||Impairmen|provided in||
|Investees||investment|||||percentag|in the|||the|
||g method||balance|ecrease|balance|investee|||t reserve|the||
|||cost|||||e in the|investees|||reporting|
|||||||||||reporting||
||||||||investee|with Voting|||period|
|||||||||||period||
|||||||||power||||
|||||||||percentag||||
|||||||||e||||
|Shenzhen||||||||||||
|Harmony||||||||||||
|World|Cost|601,307,2|601,307,2||601,307,2|||Inapplicabl||||
|||||0.00||100.00%|100.00%||0.00|0.00|0.00|
|Watches|method|00.00|00.00||00.00|||e||||
|Center||||||||||||
|Co., Ltd.||||||||||||
|Shenzhen||||||||||||
|World||||||||||||
||Cost|1,400,000.|1,400,000.|-1,400,000||||Inapplicabl||||
|Watches|||||0.00|50.00%|50.00%||0.00|0.00|0.00|
||method|00|00|.00||||e||||
|Center||||||||||||
|Co., Ltd.||||||||||||
|Xi’an||||||||||||
||Cost|||||||Inapplicabl||||
|Tangcheng||85,000.00|85,000.00|0.00|85,000.00|0.10%|0.10%||0.00|0.00|0.00|
||method|||||||e||||
|Co., Ltd.||||||||||||
|Shenzhen||||||||||||
|Harmony||||||||||||
|Culture|Cost|300,000.0|300,000.0||300,000.0|||Inapplicabl|300,000.0|||
|||||0.00||15.00%|15.00%|||0.00|0.00|
|Communic|method|0|0||0|||e|0|||
|ation Co.,||||||||||||
|Ltd.||||||||||||
|Harbin|Cost|125,000.0|125,000.0||125,000.0|||Inapplicabl||||
|||||0.00||100.00%|100.00%||0.00|0.00|0.00|
|Harmony|method|0|0||0|||e||||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|World||||||||||||
|Watches||||||||||||
|Co., Ltd.||||||||||||
|Shenzhen||||||||||||
|FIYTA||||||||||||
|Sophisticat||||||||||||
|ed|Cost|9,000,000.|9,000,000.||9,000,000.|||Inapplicabl||||
|||||0.00||100.00%|100.00%||0.00|0.00|0.00|
|Timepiece|method|00|00||00|||e||||
|s||||||||||||
|Manufactu||||||||||||
|re Co., Ltd.||||||||||||
|FIYTA||||||||||||
|(Hong|Cost|55,367,52|55,367,52||55,367,52|||Inapplicabl||||
|||||0.00||100.00%|100.00%||0.00|0.00|0.00|
|Kong)|method|0.00|0.00||0.00|||e||||
|Co.,Ltd.||||||||||||
|Shenzhen||||||||||||
|FIYTA||||||||||||
|Technolog||||||||||||
||Cost|10,000,00|10,000,00||10,000,00|||Inapplicabl||||
|y||||0.00||100.00%|100.00%||0.00|0.00|0.00|
||method|0.00|0.00||0.00|||e||||
|Developm||||||||||||
|ent Co.,||||||||||||
|Ltd.||||||||||||
|Shenzhen||||||||||||
|Symphony|Cost|5,000,000.|5,000,000.||5,000,000.|||Inapplicabl||||
|||||0.00||100.00%|100.00%||0.00|0.00|0.00|
|Trading|method|00|00||00|||e||||
|Co., Ltd.||||||||||||
|FIYTA||||||||||||
||Cost|50,000,00|50,000,00||50,000,00|||Inapplicabl||||
|Sales Co.,||||0.00||100.00%|100.00%||0.00|0.00|0.00|
||method|0.00|0.00||0.00|||e||||
|Ltd.||||||||||||
|Shanghai||||||||||||
|Watch|Equity|39,916,50|43,237,94|-504,563.2|42,733,37|||Inapplicabl||||
|||||||25.00%|25.00%||0.00|0.00|0.00|
|Industry|method|0.00|0.12|1|6.91|||e||||
|Co., Ltd.||||||||||||
|||772,501,2|775,822,6|-1,904,563|773,918,0||||300,000.0|||
|Total|--|||||--|--|--||0.00|0.00|
|||20.00|60.12|.21|96.91||||0|||

Note to investment in long term equity:
During the reporting period, the Company completed cancellation of Shenzhen World Watches Center Co., Ltd., one of theCompany’s subsidiaries, on May 5, 2014, and recovered investment capital amounting to CNY 1,400,000.00.
4. Operating Revenue and Costs
(1) Operating Revenue
FIYTA Holdings Ltd. 2014 Semi-Annual Report In CNY
||||
|-|-|-|
||Amount incurred in the reporting|Amount incurred in the previous|
|Items|||
||period|period|
|Revenue from principal|||
||42,966,203.07|44,722,706.24|
|business|||
|Revenue from other|||
|||50,379.57|
|business|||
|Total|42,966,203.07|44,773,085.81|
|Operating costs|6,497,016.07|6,806,000.42|

 (2) Principal Businesses Based on Sectors
In CNY
||||||
|-|-|-|-|-|
||||Amount incurred in the previous||
||Amount incurred in the reporting period||||
|Sectors|||period||
||Operating revenue|Operating costs|Operating revenue|Operating costs|
|Property lease|42,837,767.17|6,368,580.17|44,722,706.24|6,743,346.45|
|Industry|128,435.90|128,435.90|||
|Total|42,966,203.07|6,497,016.07|44,722,706.24|6,743,346.45|

 (3) Principal Businesses Based on Products
In CNY
||||||
|-|-|-|-|-|
||||Amount incurred in the previous||
||Amount incurred in the reporting period||||
|Description of Products|||period||
||Operating revenue|Operating costs|Operating revenue|Operating costs|
|Property lease|42,837,767.17|6,368,580.17|44,722,706.24|6,743,346.45|
|Manufacture & sales of|||||
||128,435.90|128,435.90|||
|FIYTA watches|||||
|Total|42,966,203.07|6,497,016.07|44,722,706.24|6,743,346.45|

 (4) Principal Business (based on regions)
In CNY
||||||
|-|-|-|-|-|
||||Amount incurred in the previous||
||Amount incurred in the reporting period||||
|Regions|||period||
||Operating revenue|Operating costs|Operating revenue|Operating costs|
|Northeast China|||||
|North China|||||
|Northwest China|2,708,299.98|2,700,634.30|1,750,000.00|2,114,283.80|
|Southwest China|||||
|East China|||||
|South China|40,257,903.09|3,796,381.77|42,972,706.24|4,629,062.65|

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||||
|-|-|-|-|-|
|Total|42,966,203.07|6,497,016.07|44,722,706.24|6,743,346.45|

 (5) Operating revenue from thecompany’s top five customers
In CNY
||||
|-|-|-|
|||Proportion in the|
|Description of the Customers|Total operating revenue|Company’s total|
|||sales income (%)|
|Shenzhen Tencent Computer System Co., Ltd.|15,711,703.00|36.57%|
|Oracle Software Research and Development|||
||2,798,580.00|6.51%|
|(Shenzhen) Co., Ltd.|||
|Shenzhen CATIC Hotel Management Co., Ltd.|2,708,299.98|6.30%|
|China Construction Bank Co., Ltd., Shenzhen|||
||1,862,208.00|4.33%|
|Branch|||
|Industry and Commercial Bank of China Co., Ltd.|1,420,317.36|3.31%|
|Total|24,501,108.34|57.02%|

 Note to the operating revenue
Inapplicable
. Return on investment
(1) Statement of return on investment
In CNY
||||
|-|-|-|
||Amount incurred in the|Amount incurred in the|
|Items|||
||reporting period|previous period|
|Return on long term equity investment based on|||
||98,601,444.91|74,971,478.14|
|cost method|||
|Return on long term equity investment based on|||
||-504,563.21|108,440.73|
|equity method|||
|Total|98,096,881.70|75,079,918.87|

 (2) Return on long term equity investment based on cost method
In CNY
|||||
|-|-|-|-|
||Amount incurred|Amount incurred|Cause of increase/decrease in|
|Investees|in the reporting|in the previous|the report period over the|
||period|period|previous period|
|Shenzhen FIYTA Sophisticated|||The investee’s net profit|
||98,601,444.91|64,933,629.27||
|Timepieces Manufacture Co., Ltd.|||increased in 2013 over 2012|
|Shenzhen FIYTA Technology|||The investee’s retained|
||0.00|10,037,848.87||
|Development Co., Ltd.|||earnings at the end of the year|
|Total|98,601,444.91|74,971,478.14|--|

(3) Return on long term equity investment based on equity method
FIYTA Holdings Ltd. 2014 Semi-Annual Report In CNY
|||||
|-|-|-|-|
||Amount incurred|Amount incurred|Cause of increase/decrease in|
|Investees|in the reporting|in the previous|the report period over the|
||period|period|previous period|
||||The return on the long term|
||||equity investment in Shanghai|
||||Watch Industry calculated in|
||||the reporting period includes|
||||the enjoyable share of the|
||||change of the investee’s profit|
|Shanghai Watch Industry Co., Ltd.|-504,563.21|108,440.73||
||||amounting to CNY 269,017.17|
||||and the initially appraised|
||||appreciation of the investee’s|
||||sold assets amounting to CNY|
||||773,580.38 as offset in the|
||||reporting period.|
|Total|-504,563.21|108,440.73|--|

Note to the return on investment
Inapplicable
6. Supplementary information of the cash flow statement
In CNY
||||
|-|-|-|
||Amount in the reporting|Amount in the previous|
|Supplemental Information|||
||period|period|
|1. Net cash flows arising from adjustment of net profit|||
||--|--|
|into operating activities:|||
|Net profit|106,199,470.46|82,763,509.21|
|Plus: Provisions for impairment of assets|-4,394.68|210,607.55|
|Depreciation of fixed assets, oil and gas assets,|||
||7,383,518.35|7,480,004.66|
|production based biological asset|||
|Amortization of intangible assets|714,415.41|695,545.69|
|Long-term expenses to be apportioned|814,361.94|4,662,349.88|
|Loss (income is stated with “-“) from disposal of fixed|||
||-25,457.85|0.00|
|assets, intangible assets and other long term assets|||
|Loss on retirement of fixed assets (income is stated|||
||0.00|0.00|
|with “-“)|||
|Loss from change of fair value ((income is stated with|||
||0.00|0.00|
|“-“)|||
|Financial expenses (income is stated with “-“)|1,471,843.10|0.00|
|Investment loss (income is stated with “-“)|-98,096,881.70|-75,079,918.87|
|Decrease of deferred income tax asset (increase is|||
||0.00|69,848.11|
|stated with “-“)|||
|Increase of deferred income tax asset (decrease is|||
||0.00|0.00|
|stated with “-“)|||

FIYTA Holdings Ltd. 2014 Semi-Annual Report
||||
|-|-|-|
|Decrease of inventories (increase is stated with “-“)|0.00|62,653.97|
|Decrease of operative items receivable (increase is|||
||118,627,608.11|-176,854,871.80|
|stated with “-“)|||
|Increase of operative items receivable (decrease is|||
||-2,493,847.51|-5,136,726.22|
|stated with “-“)|||
|Others|0.00|0.00|
|Net cash flow arising from operating activities|134,590,635.63|-161,126,997.82|
|2. Significant investment and fund-raising activities|||
||--|--|
|not involved in cash income and expenses:|||
|3. Net change of cash and cash equivalents:|--|--|
|Ending cash balance|45,096,060.51|31,841,346.45|
|Less: Opening cash balance|27,929,968.24|51,372,778.02|
|Net increase in cash and cash equivalents|17,166,092.27|-19,531,431.57|

 7. Assets and liabilities recorded based on the assessed value under counterpurchase
Inapplicable
XVI. Supplementary information
1. Statement of Non-recurring Profit and Loss in the Reporting Period
In CNY
||||
|-|-|-|
|Items|Amount|Note:|
|||Gain/loss from disposal of|
|Loss from disposal of non-current assets, including|||
|||part of the obsolete office|
|the part written-off with the provision for impairment|6,708.57||
|||fixed assets in the|
|of assets|||
|||reporting period.|
|Government subsidy recognized in current gains|||
|and losses (excluding those closely related to the||For the detail, refer to|
|Company’s business and granted under the state’s|1,726,500.00|Note 63 (2) government|
|policies according to certain quota of amount or||subsidy|
|volume)|||
|||Other various|
|Income and expenses from the business other than|||
||906,133.12|non-operating revenue|
|the above items|||
|||and expenditure|
|Less: Amount affected by the income tax|528,628.60||
|Total|2,110,713.09|--|

It is necessary to explain the reason on item-by-item disclosure and confirmation for the government subsidy counted to the current gain/loss as recurring gain/loss.
Inapplicable
2. Discrepancy in accounting data between IAS and CAS
(1) Discrepancy in net profit and net assets as disclosed in the financial report respectively
according to IAS and CAS
FIYTA Holdings Ltd. 2014 Semi-Annual Report In CNY
||||||
|-|-|-|-|-|
||Net profit attributable to the Company’s||Net asset attributable to the||
||shareholders||Company’s shareholders||
||||End of the|Beginning of the|
||Reporting period|Previous period|||
||||reporting period|reporting period|
|Based on CAS|88,283,873.10|69,097,419.87|1,587,697,962.33|1,536,434,684.56|
|Items and amount adjusted according to IAS|||||

(2) Discrepancy in net profit and net assets as disclosed in the financial report respectively according to the accounting standards outside Mainland China and CAS
In CNY
||||||
|-|-|-|-|-|
||Net profit attributable to the Company’s||Net asset attributable to the||
||shareholders||Company’s shareholders||
||||End of the|Beginning of the|
||Reporting period|Previous period|||
||||reporting period|reporting period|
|Based on CAS|88,283,873.10|69,097,419.87|1,587,697,962.33|1,536,434,684.56|
|Items and amount adjusted according to the accounting standards outside Mainland China|||||

(3) Note to the discrepancy in accounting data under the accounting standards outside Mainland China
Inapplicable
3. Return on Equity (ROE) and Earnings per Share (EPS)
In CNY
|||||
|-|-|-|-|
||Net ROE, weighted|EPS||
|Profit in the reporting period||||
||average|Basic EPS|Diluted EPS|
|Net profit attributable to the||||
|Company’s shareholders of ordinary|5.58%|0.225|0.225|
|shares||||
|Net profit attributable to the||||
|Company’s shareholders of ordinary||||
||5.44%|0.219|0.219|
|shares less the non-recurring||||
|gains/losses||||

4. Notes to the Abnormalities in the Major Items of theCompany’s Accounting Statements and
the Causes
||
|-|
|(1) Items on the Balance Sheet|
|A.|

FIYTA Holdings Ltd. 2014 Semi-Annual Report was mainly due to
a. the operational net cash flow-in in the reporting period amounting to CNY 138 million;
||
|-|
|b. cash payment for purchase/construction of fixed assets, intangible assets and other long term asset in|
|the reporting period amounting to about CNY 64.60 million.|

c. investment for construction of Guangming New Zone project amounting to CNY 12.59 million; d. net cash flow-in from the newly added bank loan amounting to about CNY 50.75 million
||
|-|
|e. interest payment in the reporting period and the first year interest for the company bonds amounting to|
|about CNY 57.37 million;|

||
|-|
|B. Notes receivable at the end of the reporting period amounted to CNY 18,942,659.00, a growth of|
|166.80% over the year beginning. The growth was mainly due to that FIYTA Technology, one of the|
|Company’s subsidiaries, settled the trade receivables with its customers by means of notes receivable;|

||
|-|
|C. Accounts receivable at the end of the reporting period amounted to CNY 429,298,599.75, a 32.31%|
|growth over the year beginning. The growth was mainly due to that the overall sales size kept growing|
|while the interim settlement of the shopping mail’s normal settlement period relatively lagged behind.|

||
|-|
|D. The advance payment at the end of the reporting period amounted to CNY 30,242,553.26, a 30.46%|
|drop over the year beginning. The drop was mainly due to that partial advance payment for shop|
|refurbishment was already settled in the current year;|

||
|-|
|E. The other receivables at the end of the reporting period amounted to CNY 48,674,506.86, a 20.37%|
|growth over the year beginning. The growth was mainly due to that payment for the counter security|
|deposit increased.|

||
|-|
|F. Inventories at the end of the reporting period amounted to CNY 2,082,397,057.72, a 1.93% drop over|
|the year beginning. The drop was mainly due to that the Company took measures and effectively|
|controlled the growth of inventories;|

||
|-|
|G. Other current assets at the end of the reporting period amounted to CNY 9,297,764.83, a 69.82%|
|drop over the year beginning. The drop was mainly due to that the input VAT to be offset at the|
|beginning of the reporting period was already offset in the reporting period;|

H. Fixed assets at the end of the reporting period amounted to CNY318,971,712.52, a3.94% growth over the year beginning. The growth was mainly due to that the refurbishment and restructuring ofXi’an FIYTA Building was successfully completed upon inspection;
I. The construction-in-process at the end of the reporting period amounted to CNY 20,154,445.12, a
204.99% growth over the year beginning. The growth was mainly due to the investment for construction
of the watch production base at Guangming New Zone in the reporting period;
FIYTA Holdings Ltd. 2014 Semi-Annual Report J. Deferred income tax asset at the end of the reporting period amounted to CNY 8,708,125.05, a11.74% growth over the year beginning. The growth was mainly due to increase of the internal sales profit unrealized in the reporting year;
K. Short term loan at the end of the reporting period amounted to CNY 880,000,000.00, a13.98% decrease over the year beginning. The decrease was mainly due to that the Company borrowed CNY 150,000,000.00 from AVIC International Holdings Limited, for replacing thebank’s short term loan and counted to item of other payables for counting;
L. The accounts payable at the end of the reporting period amounted to CNY 194,912,347.73, a12.34% decrease over the year beginning. The decrease was mainly due to that the Company controlled the purchase progress and size in the reporting period and the payment for goods unsettled at the end of the reporting period decreased;
M. Advance receipt at the end of the reporting period amounted to CNY 16,871,862.79, a74.53% growth over the year beginning. The growth was mainly due to increase of the payment for goods received in advance from the customers in the reporting period.
N. Other payables at the end of the reporting period amounted to CNY 191,384,823.80, a397.69% growth over the year beginning. The growth was mainly due to that the Company borrowed CNY 150,000,000.00 from AVIC International Holdings Limited in the reporting period for replacing the bank short term loan;
O. Other current liabilities at the end of the reporting period amounted to CNY 14,807,907.72, a200.71% growth over the year beginning. The growth was mainly due to increase of the accrued expenses in the current year;
P. Long term loan at the end of the reporting period amounted to CNY 218,121,283.35, a25.88% growth over the year beginning. The growth was mainly due to the supplementation of theCompany’s operating capital;
(2) Items on the Statement of Profit
A. The Company realized operating revenue from January to June, 2014 amounting to CNY 1,642,614,790.97, an8.90% growth over the same period of the previous year. The growth was mainly due to that sales income from FIYTA brand watches and famous brand watches increased over the same period of the previous year;
FIYTA Holdings Ltd. 2014 Semi-Annual Report B. The operating costs incurred from January to June, 2014 amounted to CNY 10,380,60709.77, a6.92% growth over the same period of the previous year. The growth was mainly due to growth of revenue. The discrepancy between its growth proportion and the growth proportion of the operating revenue was1.98%. The discrepancy was mainly due to that the product structure changed;
C. The sales costs incurred from January to June, 2014 amounted to CNY 349,761,320.39, a10.92% growth over the same period of the previous year. The growth was mainly due to that:
a) expansion of the business size lead to increase of theemployees’ remuneration amounting to CNY 14.03 million;
b) expansion of shops lead to growth of expenses to be apportioned, such as the counter refurbishment costs, by CNY 4.19 million;
c) such costs for FIYTA watch promotion, planning activities, etc., as market promotion expenses, advertisement expenses and exhibition costs, etc. increased by about CNY 8.25 million;
d) increase of shops lead to increase of payment for rental, shopping mall expenses, etc. by CNY 5.63 million.
D. Administrative expenses incurred from January to June, 2014 amounted to CNY 8,485,2192.92, an8.47% growth over the same period of the previous year. The growth was mainly due to that expansion of the business size lead to increase of theemployees’ remuneration;
E. Financial costs incurred from January to June, 2014 amounted to CNY 54,196,678.49, a13.33% growth over the same period of the previous year. The growth was mainly due to growth of the loan size and some rise of the market interest rate of loans in the current year.
FIYTA Holdings Ltd. 2014 Semi-Annual Report Section 10 Documents Available for Inspection
I. Accounting Statements signed by and affixed with the seals of the legal representative, chief
accountant and chief financial officer.
II. Originals of all theCompany’s documents and manuscripts of announcements disclosed in Securities Times and Hong Kong Commercial Daily as designated by China Securities Regulatory Commission in the reporting period.
Note: Table of contents of the documents the Company should disclose include:
(I) Financial statements signed by and affixed with the seals of the legal representative, chief financial officer and manager of the accounting department.
(II) Original of theauditor’s report (if any) signed by and affixed with the official seal of the accounting firm and signed by and affixed with the seal of the CPAs.
(III) Originals of all theCompany’s documents and manuscripts of the announcements disclosed on the website designated by China Securities Regulatory Commission in the reporting period.
(IV) The Semi-annual Report published in other stock market.