FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText FIYTA HOLDINGS LTD.
2015 Annual Report
March, 2016
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText Chapter 1 Important Notice, Table of Contents and Definition
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 ofthisreport andconfirmthat thereare neithermaterialomissionsnorerrors whichwouldrenderany statementmisleading.
Mr. Xu Dongsheng, the Company leader, Mr. Hu Xinglong, chief financial officer, and Mr. Hu Xinglong, the manager of the accounting department (treasurer) hereby confirm the authenticity and completeness of the financialreportenclosedinthisAnnualReport.
With the exception of the following directors, all the other directors personally attended the Board Meeting for reviewingtheAnnualReport
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|Namesofthedirectorsfailedinattendingthemeetingpersonally|Postsofthedirectorsfailedinattendingthemeetingpersonally|Causeoffailureinattendingthemeetingpersonally|Namesoftheattorneys|
|DiaoWeicheng|Chairman|Businesstrip|XuDongsheng|
|LiuAiyi|Director|Businesstrip|CaoZhen|
|ZhongSijun|Director|Businesstrip|WangMingchuan|
|ZhangHongGuang|Independentdirector|Businesstrip|WangYan|

Anyperspectivedescription,suchasfutureplan,developmentstrategy,etc.involvedintheAnnualReportshall not constitute theCompany’s substantial commitment to the investors and the investors should please pay attentiontotheirinvestmentrisks.
In the Report, the Company has presented in detail the potential risks existing in the macro economy and operation.Investorsareadvisedtoreadcarefullythecontentsconcerningriskfactorspossiblytobeconfronted with in theCompany’s future development prospects and the countermeasures in Chapter 4 Management DiscussionandAnalysis.
Theprofitdistributionpreplanreviewedandapprovedbythesaidboardmeetingissummarizedasfollows:With theCompany’s total share capital 438,744,881 as the base, the Company would distribute cash dividend at the rateofCNY1.00forevery10shares(withtaxinclusive)andbonusshareattherateof0share(withtaxinclusive) tothewholeshareholdersandnoreserveswouldbeconvertedintosharecapital.
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText Table of Contents
Chapter1ImportantNotice,TableofContentsandDefinitions
Chapter2CompanyProfileandFinancialHighlights
Chapter3BusinessSummary
Chapter4DiscussionandAnalysisoftheManagement
Chapter5SignificantEvents
Chapter6ChangesinSharesandParticularsabouttheShareholders
Chapter7AboutthePreferredShares
Chapter8Directors,Supervisors,OfficersandEmployees
Chapter9CorporateGovernance
Chapter10FinancialReport
Chapter11ListofDocumentsAvailableforInspection
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText Definition
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|Termstobedefined|Refersto|Definition|
|ThisCompany,theCompanyorFiyta|Refersto|FIYTAHoldingsLtd.|
|AVICInternationalHoldings|Refersto|AVICInternationalHoldingsLimited|
|HARMONY|Refersto|ShenzhenHarmonyWorldWatchesCenterCo.,Ltd.|
|RainbowSupermarket|Refersto|RainbowSupermarketCo.,Ltd.|
|CATICRealEstate|Refersto|CATICRealEstateCo.,Ltd.|
|CATICProperty|Refersto|CATICPropertyManagementCo.,Ltd.|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText Chapter 2 Company Profile and Financial Highlights
I. Company Profile
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|Shortformofthestock:|FIYTAA, FIYTA B|StockCodes:|000026and200026|
|StockExchangeListedwith|ShenzhenStockExchange|||
|CompanyNameInChinese|飞亚达（集团）股份有限公司|||
|AbbreviationofRegisteredCompanyNameinChinese|飞亚达公司|||
|Companynameinforeignlanguage(ifany)|FIYTA HOLDINGS LTD.|||
|ShortformoftheCompanynameinforeignlanguage(ifany)）|FIYTA|||
|LegalRepresentative|XuDongsheng|||
|Registeredaddress:|FIYTATechnologyBuilding,GaoxinS.RoadOne,NanshanDistrict,Shenzhen|||
|PostalCodeoftheRegisteredAddress|518057|||
|OfficeAddress|20thFloor,FIYTATechnologyBuilding,GaoxinS.RoadOne,NanshanDistrict,Shenzhen|||
|PostalCodeoftheOfficeAddress|518057|||
|InternetWebSite|www.fiytagroup.com|||
|E-mail|investor@fiyta.com.cn|||

II. Liaison Persons and Communication Information
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||SecretaryoftheBoard|SecuritiesAffairsRepresentative|
|Names|LuWanjun|ZhangYong|
|LiaisonAddress|20thFloor,FIYTATechnologyBuilding,GaoxinS.RoadOne,NanshanDistrict,Shenzhen|20thFloor,FIYTATechnologyBuilding,GaoxinS.RoadOne,NanshanDistrict,Shenzhen|
|Tel.|0755－86013198|0755－86013669|
|Fax|0755－83348369|0755－83348369|
|E-mail|investor@fiyta.com.cn|investor@fiyta.com.cn|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText III. InformationDisclosure andPlace wherethe Regular Reports arePrepared
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|NewspapersDesignatedforDisclosingtheInformation:|SecuritiesTimesandHongKongCommercialDaily|
|InternetWebSiteDesignatedbyChinaSecuritiesRegulatoryCommissionforPublishingtheCompany’ssemi-annualreport:|www.cninfo.com.cn|
|PlaceoftheCompany’sSemi-annualReportPreparedforInquiry|OfficeoftheBoardofDirectors|

IV.ChangesinRegistration
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|OrganizationCode|19218978-3|
|Changesinprincipalbusinessactivitiessincelisting(ifany)|Nochange|
|Changesinthecontrollingshareholderinthepast(ifany)|Nochange|

V.Other Relevant Information
CPAsengaged
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|NameoftheCPAs|GrantThorntonCertifiedPublicAccountants(SpecialGeneralPartnership)|
|Officeaddress|5thFloor,ScitechTower,22JianguomenWaiAvenue,ChaoyangDistrict,Beijing|
|NamesoftheCertifiedPublicAccountantsasthesignatories|SuYangandChenZhifang|

ThesponsorperformingpersistentsupervisiondutiesengagedbytheCompanyinthereportingperiod
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|NameoftheSponsor|OfficeAddress|Representatives|Durationofpersistentsupervision|
|HuachuangSecuritiesCo.,Ltd.|HuachuangBuilding,216ZhonghuaN.Road,Guiyang,GuizhouProvince|LiXiuminandHuangJunyi|January15,2016toDecember31,2017|

ThefinancialadvisorperformingpersistentsupervisiondutiesengagedbytheCompanyinthereportingperiod
Inapplicable
VI. Summary of Accounting/FinancialData
MaytheCompanymakeretroactiveadjustmentorrestatementoftheaccountingdataofthepreviousyearsduetochange oftheaccountingpolicyandcorrectionofaccountingerrors?
No
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
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||2015|2014|Year-on-yearincrease/decrease|2013|
|TurnoverinCNY|3,162,196,212.90|3,278,142,785.87|-3.54%|3,103,496,962.22|
|NetprofitattributabletotheCompany’sshareholders,inCNY|121,702,057.44|145,591,136.39|-16.41%|130,125,124.48|
|NetprofitattributabletotheCompany’sshareholderslessthenon-recurringitems,inCNY|113,441,715.91|136,799,116.72|-17.07%|127,158,503.02|
|Netcashflowsarisingfromoperatingactivities,inCNY|396,236,992.41|289,189,630.97|37.02%|79,047,490.92|
|Basicearningpershare(CNY/share)|0.3099|0.3707|-16.40%|0.3310|
|Dilutedearningpershare(CNY/share)|0.3099|0.3707|-16.40%|0.3310|
|Returnonequity,weightedaverage(%)|7.24%|8.62%|-1.38%|8.69%|
||Endof2015|Endof2014|Increase/decreaseattheendoftheyearovertheendofthepreviousyear|Endof2013|
|Totalassets,inCNY|4,246,670,045.02|3,657,781,647.20|16.10%|3,558,702,591.28|
|NetassetsattributabletotheCompany’sshareholders(owner’sequityattributabletotheCompany’sshareholders,inCNY)|2,299,215,650.21|1,633,401,930.64|40.76%|1,536,434,684.56|

VII. Difference in the Accounting Data based respectively on the Chinese Accounting Standards (CAS) and InternationalAccounting Standards(IAS)
1.Differencesinthenetprofitdisclosedinthefinancialreport&thenetassetsrespectivelyaccordingtotheIAS andtheCAS.
Inapplicable
2. Didfferences in the net profit disclosed in the financial report& the net assets attributable to theCompany’s shareholdersaccordingtoboththeIASandtheCAS
Inapplicable
VIII.FinancialDataSummarybasedonQuarters
In CNY
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|1stQuarter|2ndQuarter|3rdQuarter|4thQuarter|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
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|Operatingrevenue|894,056,260.25|789,736,987.34|784,087,458.61|694,315,506.70|
|NetprofitattributabletotheCompany’sshareholders|44,967,185.35|28,142,234.38|33,505,446.25|15,087,191.50|
|NetprofitattributabletotheCompany’sshareholderslessthenon-recurringprofitandloss|44,409,083.60|27,549,001.67|31,372,100.25|10,142,734.20|
|Netcashflowsarisingfromoperatingactivities|109,358,176.80|62,895,601.76|86,981,239.77|137,001,974.10|

Doesthereexistsignificantdifferenceintheforegoingfinancialdataortheirtotalsumfromtherelevantfinancialdataas disclosedinthequarterlyreportsand/orsemi-annualreport.
No
IX. Non-recurringgain/loss items andamount involved
inCNY
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|Items|Amountin2015|Amountin2014|Amountin2013|Note|
|Gain/lossfromdisposalofnon-currentassets,includingthepartoffsetfromtheprovisionforimpairmentofassets.|34,435.32|-44,920.98|388,966.99||
|Taxrebate,exemptionorreductionapprovedbyoversteppingtheauthorityorwithoutofficialapprovaldocument||0.00|0.00||
|Governmentsubsidycreditedtothecurrentgainandloss(exceptthegovernmentsubsidiescloselyrelatedwiththeCompany’sbusinessandenjoyableaccordingtotheunifiedstandardquotaorfixedamountspecifiedbythecentralgovernment).|10,889,579.23|10,344,542.00|3,610,593.36||
|Fundoccupancyfeecollectedbynon-financialenterprisesstatedinthegainsandlossesintheveryperiod||0.00|0.00||
|Income from the costs of theinvestments in the subsidiaries,associates and joint ventures asacquired less than the fair value of theenjoyablerecognizablenetassetsoftheinvestees at the time of investmentacquired.||0.00|0.00||
|Exchangegain/lossfromnon-monetary||0.00|0.00||

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
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|assets|||
|Gain/lossfromentrustedinvestmentorassetmanagement|0.00|0.00|
|Provisionforimpairmentofvariousassetsarisingfromforcemajeure,suchasnaturaldisaster|0.00|0.00|
|Gains/Lossesfromdebtsreorganization|0.00|0.00|
|Enterprisereorganizationfees,suchasexpensesforarrangementforemployees,integrationfee,etc.|0.00|0.00|
|Gains/lossesexceedingthefairvaluearisingfromtransactionswithobviouslyunfairprices|0.00|0.00|
|Netgainandlossofthesubsidiaryunderthecommoncontrolandproducedfromenterpriseconsolidationfromthebeginningoftheperiodtotheconsolidationdate|0.00|0.00|
|GainandlossarisingfromcontingentmattersirrelevantwiththeCompany’snormaloperationbusiness|0.00|0.00|
|Gainandlossfromchangeofthefairvaluearisingfromtransactionalmonetaryassets,transactionalfinancialliabilitiesasheldaswellastheinvestmentincomearisingfromdisposalofthetransactionalmonetaryassets,transactionalfinancialliabilitiesandfinancialassetsavailableforsaleexcludingtheeffectivehedgingtransactioninconnectionwiththeCompany’snormalbusiness|0.00|0.00|
|Reverseoftheprovisionforimpairmentofaccountsreceivableundergoingimpairmenttestindividually|0.00|0.00|
|Gain/lossfromexternalentrustdloan|0.00|0.00|
|Gainandlossarisingfromchangeinthefairvalueoftheinvestmentbasedrealestatemeasuredafterwardsbymeansoffairvaluemodel|0.00|0.00|
|Influenceuponthecurrentgainsand|0.00|0.00|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
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|lossesfromtheonce-and-for-alladjustmentoverthecurrentgainsandlossesaccordingtothetaxationandaccountinglawsandregulations|||||
|Incomefromcustodianchargeobtainedfromentrustedoperation||0.00|0.00||
|Operatingincomeandexpensesotherthantheaforesaiditems|-17,790.06|0.00|-153,915.17||
|Othergains/lossesincompliancewiththedefinitionofnon-recurringgain/loss||1,149,979.86|0.00||
|Less:Amountaffectedbytheincometax|2,645,882.96|2,657,581.21|873,382.95||
|Amountaffectedbyminorityequity(aftertax)||0.00|5,640.77||
|Total|8,260,341.53|8,792,019.67|2,966,621.46|--|

For theCompany’s non-recurring gain/loss items as defined in the Explanatory Announcement No. 1 on Information Disclosurefor CompaniesOfferingtheirSecuritiestothePublic– Non-recurringGainsandLossesanditsnon-recurring gain/loss items as illustrated in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies OfferingtheirSecuritiestothePublic–Non-recurringGainsandLosseswhichhavebeendefinedasrecurringgainsandlosses,it isnecessarytoexplainthereason.
Inapplicable
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText Chapter 3 Business Summary
I. Principal Businesses in the Reporting Period
FIYTA has been concentrating itself in watch industry under the strategy of brand building, carrying forward integration andupgradingofthekeyvaluechain,successfullyconstructedcommercialretailnetworkchannelsofseamlesscoverage consistingofHARMONY,HENGLIANDA,theSalesCompany(includingBRANDGALLERY),e-commerceplatform,etc.,,providedtheconsumerswithextremelythoughtfultopqualityservices;improvedR&D,designandmanufactureplatform of watches, formed our own brand group with the high-end brands, FIYTAwatches and fashion brands as the principal andboththebrandsandproductshavebeenwellupgraded.
II. Significant Changes in the Prime Assets
1. Significant Changes inthePrime Assets
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|PrimeAssets|NotestoSignificantChanges|
|EquityAssets|OnNovember11,2015ChinaSecuritiesRegulatoryCommissionissuedtheOfficialReplytoFIYTAHoldingsLtd.onApprovalforNon-publicIssuing(ZHENGJIANXUKE[2015]No.2588whichauthorizedtheCompanytoissuenomorethan46,911,649newsharesinnon-publicway.EndedDecember22,2015,theCompanycompletedtheworkofnon-publicissuingof45,977,011A-sharestothedesignatedinvestors.Afterdeductingtheissuingcosts,thenetraisedcapitalamountedtoCNY582,924,373.62.Upontheforegoingtransaction,theCompanyincreasedtheregisteredcapitalbyCNY45,977,011withthetotalregisteredcapitalturningtobeCNY438,744,881,andincreasedthecapitalreservebyCNY536,947,362.62.ThesharesnewlyissuedgotlistedwithShenzhenStockExchangeonJanuary15,2016.|
|FixedAssets|Inthereportingyear,theannextotheCompany’s1928BuildingwastransferredintofixedassetsforaccountinguponcompletioninconstructionandacceptenceinspectionwithtotalamountofCNY38,499,050.00.|
|IntangibleAssets|Nochange|
|Construction-in-process|Nochange|

2. MainAssets Overseas
Inapplicable
III. Analysis on Core Competitiveness
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullTextFIYTA’scorecompetitivenessisacollectionconsistingofasetoftechniquesandtechnologywhichenablestheCompany toprovidecustomerswithparticularvalues,isthecompetitivepoweronwhichaseriesofproductsorservicesrelyin achievingtheleadingposition.Itconsistsoftheabilityofbrandbuilding,abilityofofferingtopqualityservices,abilityof productinnovation,abilityofknowledgemanagementandabilityofmanagementofstrategichumanresources.
Inadditiontothecontinuousconsolidationoftheaforegoingcoreability,inthereportingperiod,theCompanyachieved greatsuccessinconstructionofthetechnologyplatformandtechnologicalinnovation.
Following being certified as an enterprise technology center at municipal level, theCompany’s innovative design center hasbeencertifiedasanindustrialdesigncenteratnationallevelbytheMinistryofIndustryandInformationTechnologyof thePeople’s Republic of Chinaand The Company haskept itsleadingposition inthe domesticwatchindustry. In 2015,theCompany’sinventionpatentsanddesignpatentswononehonorablementionofChinesepatentsandonehonorable mentionofChinesedesignrespectively.Thedesignproductswon“RedStarDesignAwardin2015”;“GrandAwardatthe FirstChinaLightIndustryExcellenceAward”;“GlobalFinalJuryofShenzhenDesignAwardforYoungTalents2015”;five awards at the 2nd ChinaHengli·Blue Light Cup Horologe Design Competition, namely one Gold, one Silver and three BronzeAwards.Inthewhole,theCompanyappliedfor1inventionpatent,7utilitymodelpatentsand35designpatents;in thevery,3inventionpatents,4utilitymodeland25designpatentshavebeengranted;inthereportingyear,theCompany tookleadorparticipatedinpreparationorrevisionof6nationalindustrialstandards;oneinternationaltechnicalstandard the Company took lead in preparation of got promulgated and the Company took lead or participated in preparation or revisionof6nationalindustrialstandards.
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText Chapter 4 Discussion and Analysis of the Management I. General
Inthereportingperiod,thedevelopmentofChina’seconomywasslowingdownandtheconsumptionmarketwasnotso flourishing.Suchasituationhasresultedinabigpressureuponthebusinessofwatchindustry.Beingconfontedwiththe extremely challenging market environment, the Company, based on the idea of striving to be better and seeking improvementthroughinnovation,tookthebrandbuildingstrategyastheguidance,focusedontheannualworkthemeof“values,innovation,adjustmentandprofit”,furtherpropelledconstructionofthebusinessmodelof“products+channels”, and achieved significant progress in brand building, quality service, product innovation, strategic human resources, knowledgemanagement,etc.Basedonestablishmentoftheinnovationsystemofcreatingvaluesforcustomers,devoted greateffortstoincarryingouttheinnovationpracticeworkwithwholeemployeesinvolved;keenlylookedintothemarket changes,positivelyoptimizedandadjustedthechannelstructure,devotedgreateffortsinresearchanddevelopmentand timelylaunchednewproducts;focusedonefficiencyimprovement,emphasizedsuchmanagementitemsas“perunityield improvement”, “invesntory turnover improvement” and “increasing revenue and reducing expenditure”; enthusiastically made use of the Internet and energetically developed e-commerce and newly-developing business, realized precision brand marketing and effective communication. In the reporting period, the whole colleagues of FIYTA successfully overcomed all difficulties with their courage, passion, wisdom and sweat and reduced unfavorable influences brought aboutbytherapidchangeoftheenvironment,timelyadjustedtheoperationstrategyandintegratedcoresandoptmizedthebusinesses,insistedonsustainabledevelopmentoftheCompany’smultiplebrandsandmulti-channelbusiness.Asa result, the Company realized sales revenue amounting to CNY 3,162,196,212.90 in the whole year, dropped by3.54% over the previous year; realized net profit attributed to the shareholdersamounting to CNY 121,702,057.44, dropped by16.41%overthepreviousyear;andnetcashflowarisingfromtheoperatingactivitiesamountingtoCNY396,236,992.41. Underthecircumstanceofgeneraldecliningofthedomesticwatchindustryinthereportingperiod,FIYTAcarriedoutthe work in such dimensions as “per unit yield improvement, channel expansion, brand promotion, shopping guide team building” at deepened level, developed the market channels at depth, integrated and optimized the business models, vigorously fostered dealers, reinforced the ability of communication with customers. As a result, FIYTA watch channel quality and thecustomers’ satisfaction have been constantly improved; the celebrity endorsement validation and the reputation of the brand have been continuously enhanced; the product R& D and design ability have been further improved. In the reporting year, the Company once again honorably gained the title of “Industrial Design Center at National Level” which keeps pace with the "Technology Center at National Level”, a title which the Company has been enjoying, which has compacted the development platform supported with own watch brands. The Company has kept developing e-commerce, BRAND GALLERY and repairing services; and explored innovation in business models based on the customer experience upgrading and the Internet based idealogy. With the unfavorable influence from the tremendous flactuation of the domestic capital market and change of the consumption environment of the industrial market,growthoftherevenuefromFIYTAwatchessignificantlysloweddownoverthepreviousyear.Inthereportingyear,theCompanyrealizedoperatingrevenueamountingtoCNY885,294,253.56,withayear-on-yeargrowthrateof3.36%. In thereportingperiod,beingfacedwiththechallengefromthepersistentglidingofthemarket ofmediumandhighend watches, Shenzhen Harmony World Watches Center Co., Ltd. has been closely centering on the annual work theme of “values, adjustment, foundation and profit” and taking efficiency improvement as the objective, vigorously optimized the
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText shops, brands and stock patterns; laid a solid foundation in the management work, continuously carried out the special work of “per unit yield improvement”, “stopping or reducing loss”, and “stock structure optimization” etc., improved the profit making ability of the shops, greatly enforced stock consumption, timely closed deficit making shops; vigorously developedrepairingandtechnicalservicebusinesses,carriedoutvariousitemsofbusinessinnovationworkbasedonthe Internetrelatedideas.However,astheconsumptionmarketofdomesticfamousbrandwatchesisdepressedingeneral, HARMONY realized sales income from famous watches amounting to CNY 2,139,277,415.85, dropped by6.92% on year-on-yearbasis.
Inthereportingperiod,theincomefromtheCompany’spropertieskeptsteadygrowth.
The Companyhassuccessfully finished thework of non-publicissuing of A-shares, fromwhichthe Companyraised net proceedsamountingtoCNY582,924,373.62.Thenewlyadded45,977,011shareswerelistedonJanuary15,2016. Movementsofthekeyfinancialitemsin2015aresummarizedasfollows:
StatementItems 2015 2014 Increase/ CauseoftheMovementsDecrease(%)
Operatingrevenue 3,162,196,212.90 3,278,142,785.87 -3.54%
Operatingcosts 1,929,513,666.04 2,054,714,957.45 -6.09%
Salesexpenses 779,536,520.59 722,839,956.11 7.84%
Administrative 198,077,866.76 208,452,027.58 -4.98%
expenses
Financialexpenses 94,347,464.79 105,819,460.82 -10.84%
Net cash flow arising 396,236,992.41 289,189,630.97 37.02% It was mainly due to that being fromoperatingactivities confronted with the increasingly complicated market environment, the Company made proper control over the network developmentspeedandinventory procurement and reinforced the managementofthecashflow Net cash flow arising -230,011,696,60 -94,503,209.83 22.84%
from investment
activities
Net cash flow arising 354,689,968.60 -94,503,209.83 -475.32%- It was mainly due to that the fromfinancingactivities Company grasped the opportunity that the central bank lowered the benchmar interest rateseveraltimesinthereporting year and lowered the interest paymentbymeansofexchanging the bank loans ahead of time. In addition, the Company finished the non-public issuing of 45,977,011 A-shares from which
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText the Company raised capital with net amount of CNY 582,924,373.62.
II. Analysis on Principal Businesses
1. General
Referto“I.General”of“DiscussionandAnalysisoftheManagement”
2. Revenue andCosts
(1) OperatingRevenueComposition
InCNY
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|-|-|-|-|-|-|
||2015||2014||Year-on-yearincrease/decrease|
||Amount|Proportionintheoperatingrevenue|Amount|Proportionintheoperatingrevenue||
|Totaloperatingrevenue|3,162,196,212.90|100%|3,278,142,785.87|100%|-3.54%|
|Classifiedbasedonsectors||||||
|Watches|3,032,902,719.41|95.91%|3,154,917,328.23|96.24%|-3.87%|
|Lease|94,871,950.77|3.00%|90,452,962.92|2.76%|4.89%|
|Others|34,421,542.72|1.09%|32,772,494.72|1.00%|5.03%|
|Classifiedbasedonproducts||||||
|Watches|2,147,608,465.85|67.92%|2,298,438,269.08|70.11%|-6.56%|
|FIYTAwatches|885,294,253.56|28.00%|856,479,059.15|26.13%|3.36%|
|Lease|94,871,950.77|3.00%|90,452,962.92|2.76%|4.89%|
|Others|34,421,542.72|1.09%|32,772,494.72|1.00%|5.03%|
|Classifiedbasedonregions||||||
|SouthChina|1,034,176,502.17|32.71%|1,066,617,663.91|32.54%|-3.04%|
|NorthwestChina|524,570,697.36|16.59%|565,700,125.97|17.26%|-7.27%|
|NorthChina|504,961,668.45|15.97%|539,995,688.23|16.47%|-6.49%|
|EastChina|449,126,026.79|14.20%|447,079,002.18|13.64%|0.46%|
|NortheastChina|303,634,173.44|9.60%|310,178,526.39|9.46%|-2.11%|
|SouthwestChina|345,727,144.69|10.93%|348,571,779.19|10.63%|-0.82%|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText (2) Sector(s), Product(s) or Region(s) Taking over10% of the Operating Revenue or Operating Profit
InCNY
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|-|-|-|-|-|-|-|
||Operatingrevenue|Operatingcosts|Grossprofitrate|Year-on-yearincrease/decreaseofoperatingrevenueoverthepreviousyear|Year-on-yearincrease/decreaseofoperatingcostsoverthepreviousyear|Year-on-yearincrease/decreaseofgrossprofitrateoverthepreviousyear|
|Sectors|||||||
|Watch|3,032,902,719.41|1,906,085,186.72|37.15%|-3.87%|-6.11%|1.50%|
|Lease|94,871,950.77|14,533,950.78|84.68%|4.89%|12.14%|-0.99%|
|Others|34,421,542.72|8,894,528.54|74.16%|5.03%|-23.36%|9.57%|
|Products|||||||
|Watches|2,147,608,465.85|1,623,918,119.34|24.38%|-6.56%|-7.38%|0.67%|
|FIYTAwatches|885,294,253.56|282,167,067.38|68.13%|3.36%|1.91%|0.45%|
|Lease|94,871,950.77|14,533,950.78|84.68%|4.89%|12.14%|-0.99%|
|Others|34,421,542.72|8,894,528.54|74.16%|5.03%|-23.36%|9.57%|
|Regions|||||||
|SouthChina|1,034,176,502.17|562,653,054.71|45.59%|-3.04%|-9.86%|4.11%|
|NorthwestChina|524,570,697.36|340,488,440.23|35.09%|-7.27%|-7.43%|0.11%|
|NorthChina|504,961,668.45|329,038,618.83|34.84%|-6.49%|-6.62%|0.09%|
|EastChina|449,126,026.79|277,859,635.82|38.13%|0.46%|-1.35%|1.13%|
|NortheastChina|303,634,173.44|192,956,014.26|36.45%|-2.11%|-3.54%|0.94%|
|SouthwestChina|345,727,144.69|226,517,902.19|34.48%|-0.82%|-0.95%|0.09%|

Whileadjustmentofthestatisticalcaliberfortheprincipalbusinessdatatookplaceinthereportingperiod,theprincipal businessdatawiththestatisticalcaliberadjustedattheendofthereportingperiod.
Inapplicable
(3) Istheincome from salesinkindgreater thanservicerevenue
yes
|||||||
|-|-|-|-|-|-|
|Basedonsector(s)|Items|Unit|2015|2014|Year-on-yearincrease/decrease|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
|||||||
|-|-|-|-|-|-|
|FIYTAwatches|Salesvolume|pcs|967,866|841,978|14.95%|
||Output|Pcs|1,185,408|977,480|21.27%|
||Inventorylevel|pcs|1,000,134|782,592|27.80%|

Causesofthechangeintheyear-on-yeardatabyover30%
Inapplicable
(4) Implementation ofImportant SaleContracts Concludedat theEnd of theReporting Period Inapplicable
(5) Compositionof OperatingCosts
Classifiedbasedonsectorsandproducts
Classifiedbasedonsectors
In CNY
||||||||
|-|-|-|-|-|-|-|
|Classifiedbasedonsectors|Items|2015||2014||Year-on-yearincrease/decrease|
|||Amount|Proportioninoperatingcosts|Amount|Proportioninoperatingcosts||
|Watch|Merchandiseprocurementcost|1,623,918,119.34|84.16%|1,753,276,107.39|85.33%|-1.17%|
|Watch|Rawmaterials|243,872,473.79|12.64%|243,230,326.08|11.84%|0.80%|
|Watch|Laborcost|26,043,601.65|1.35%|24,071,448.84|1.17%|0.18%|
|Watch|Depreciationcost|2,186,010.90|0.11%|1,778,552.44|0.09%|0.03%|
|Watch|Utilitybills|2,566,336.12|0.13%|2,767,942.77|0.13%|0.00%|
|Watch|Rentalfee|2,211,474.27|0.11%|1,842,729.25|0.09%|0.02%|
|Watch|Others|5,287,170.65|0.27%|3,182,787.69|0.15%|0.12%|
|Lease|Depreciationcost|9,144,144.60|0.47%|9,144,144.60|0.45%|0.03%|
|Lease|Laborcost|480,178.00|0.02%|424,349.80|0.02%|0.00%|
|Lease|Others|4,909,628.18|0.25%|3,391,481.48|0.17%|0.09%|
|Others|Procurementcost|8,894,528.54|0.46%|11,605,087.11|0.56%|-0.10%|

Notes:1.TheCompanyshoulddisclosetheproportionofthemajorcomponentsoftheoperationcosts(suchasraw
materials,laborwages,depreciation,energy,power,etc.)ofthereportingyearinthetotalcostsbasedonthesectorsor
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText productsandprovidethecomparabledataofthesameaccountofthepreviousyear.Shouldtherebenocomparabledata available,theCompanyshouldspecifythecause.
2.Ifsuchinformationinvolvesbusinesssecret,theCompanymaymerelydisclosethemaximumorthemostimportant individualitems.
ClassifiedbasedonProducts
In CNY
||||||||
|-|-|-|-|-|-|-|
|Classifiedbasedonproducts|Items|2015||2014||Year-on-yearincrease/decrease|
|||Amount|Proportioninoperatingcosts|Amount|Proportioninoperatingcosts||
|Famousbrandwatches|Merchandiseprocurementcost|1,623,918,119.34|84.16%|1,753,276,107.39|85.33%|-1.17%|
|FIYTAwatches|Rawmaterials|243,872,473.79|12.64%|243,230,326.08|11.84%|0.80%|
|FIYTAwatches|Laborcost|26,043,601.65|1.35%|24,071,448.84|1.17%|0.18%|
|FIYTAwatches|Depreciationcost|2,186,010.90|0.11%|1,778,552.44|0.09%|0.03%|
|FIYTAwatches|Utilitybills|2,566,336.12|0.13%|2,767,942.77|0.13%|0.00%|
|FIYTAwatches|Rentalfee|2,211,474.27|0.11%|1,842,729.25|0.09%|0.02%|
|FIYTAwatches|Others|5,287,170.65|0.27%|3,182,787.69|0.15%|0.12%|
|Lease|Depreciationcost|9,144,144.60|0.47%|9,144,144.60|0.45%|0.03%|
|Lease|Laborcost|480,178.00|0.02%|424,349.80|0.02%|0.00%|
|Lease|Others|4,909,628.18|0.25%|3,391,481.48|0.17%|0.09%|
|Others|Finishedproductsprocurement|8,894,528.54|0.46%|11,605,087.11|0.56%|-0.10%|

Notes: 1. The Company should disclose the proportion of the major components of the operation costs (such as raw materials,laborwages, depreciation,energy,power,etc.)ofthereportingyearinthetotalcostsbasedonthesectorsor
products,andprovidethecomparabledataofthesameaccountofthepreviousyear.Shouldtherebenocomparabledata
available,theCompanyshouldspecifythecause.
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText 2.Ifsuchinformationinvolvesbusinesssecret,theCompanymaymerelydisclosethemaximumorthemostimportant individualitems.
Remarks:
Inapplicable
Notes:1.TheCompany’ssupplementalexplanationtotheforegoingitems.
2.Explainthereasonwhyitisimpossibletoabtainthedataofthesameaccount.
(6) Isthereanychange intheconsolidationscope inthereporting period
No
(7) Is there any significant change or adjustment related situation take place in theCompany’s business,products or servicesinthe reportingperiod
Inapplicable
(8) Majortrade debtors and major suppliers
Majortradedebtors
|||
|-|-|
|Totalsalestothetopfivecustomers,inCNY|261,939,772.75|
|Proportionofthetotalsalestothetopfivecustomersinthetotalsalesoftheyear,|8.28%|

Informationofthetop5customers
|||||
|-|-|-|-|
|No.|Customers|Sales (in CNY)|Proportioninthetotalsalesoftheyear|
|1|RainbowSupermarket|81,677,865.75|2.58%|
|2|Xi’anKaiyuanShoppingMailCo.,Ltd.|47,472,424.57|1.50%|
|3|CHINARESOURCESSUNHUNGKAIPROPERTIES(HANGZHOU)LIMITED|46,061,278.60|1.46%|
|4|JiangxiBaishengZhongshanchengDepartmentStoreCo.,Ltd.|43,705,884.01|1.38%|
|5|PingheTong(China)Ltd.|43,022,319.82|1.36%|
|Total|--|261,939,772.75|8.28%|

 OtherInformationaboutthemajorcustomers
Of the top five customers, Rainbow Supermarket is one of the controlled subsidiaries of AVIC International Holdings
LimitedandisoneoftheCompany’srelatedlegalpersons.
Top5suppliers
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
|||
|-|-|
|Totalamountofpurchasefromtopfivesuppliers,inCNY|1,024,748,888.00|
|ProportionofthepurchaseamountfromthetopfivesuppliersintheCompany’stotalpurchaseamount|53.11%|

Informationaboutthetop5suppliers
|||||
|-|-|-|-|
|No.|Suppliers|Purchaseamount,inCNY|Proportioninthetotalpurchasesoftheyear(%)|
|1|SMHSwissWatchTrading(Shanghai)Co.,Ltd.|557,159,710.71|28.88%|
|2|NingboShanghengWatchesCo.,Ltd.|211,500,391.90|10.96%|
|3|Rolex(Guangzhou)Ltd,.|126,129,988.30|6.54%|
|4|RICHEMONTCOMMERCIALCOMPANYLIMITED|67,806,044.53|3.51%|
|5|ShenzhenHendryWatchesCo.,Ltd.|62,152,752.20|3.22%|
|Total|--|1,024,748,888.00|53.11%|

 Otherinformationaboutthemajorsuppliers
Inapplicable
3. Expenses
InCNY
||||||
|-|-|-|-|-|
||2015|2014|Year-on-yearincrease/decrease|Notetosignificantchanges|
|Salesexpenses|779,536,520.59|722,839,956.11|7.84%||
|Administrativeexpenses|198,077,866.76|208,452,027.58|-4.98%||
|Financialexpenses|94,347,464.79|105,819,460.82|-10.84%||

4. InvestmentinR& D
The Company has attached importance on technology innovation work all the time, enhances its core competitiveness through innovation of the technology with own intellectual property, consolidate its leading position of self-innovation inChina’sclockandwatchbrandssoastorealizeitsvisionofbecominganinternationalbrandandimproveitsinternational competitiveness in the industry. In the year 2015, theCompany’s total investment in R& D amounted to CNY 37,481,362.43, a10.75% growth over the previous year, taking1.63% of the net assets as audited in the most recentperiodandtaking1.19%oftheoperationrevenueasauditedinthemostrecentperiod.
Growth of investment in R& D in 2015 was mainly due to that for the purpose of consolidating theCompany’s leading
position of self-innovation inChina’s clock and watch brands and leading the industry for innovative development, the
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText Company increased investment in such key technology fields as space watches, timekeeping technology, research on applicationofnewmaterials,etc.,greatlyincreasedpersonnel,equipment,researchbudget,etc.,andachievedanumber of scientific research achievements. In 2015, the number of patents for invention granted increased by14% over the previousyearandsuchpatentshavebeenappliedinourproducts.Byvirtueoftheaccumulationininnovationmechanism, innovationability,innovativetalentsandinnovationproducts,etc.,FIYTAInnovativeDesignCenterhasbeencertifiedasanationalindustrialdesigncenterbytheMinistryofIndustryandInformationTechnologyofthePeople’sRepublicofChina.InformationofInvestmentinR&D
|||||
|-|-|-|-|
||2015|2014|Variableproportion|
|NumberofR&Dstaff(persons)|39|36|8.33%|
|ProportionofR&Dstaffintotalemployees|0.70%|0.65%|0.05%|
|AmountofinvestmentinR&D,inCNY|37,481,362.43|33,842,818.77|10.75%|
|ProportionofinvestmentinR&Dinoperatingrevenue|1.19%|1.03%|0.16%|
|AmountofcapitalizedinvestmentinR&D(inCNY)|0.00|0.00|0.00%|
|ProportionofcapitalizedinvestmentinR&DinthetotalinvestmentinR&D|0.00%|0.00%|0.00%|

Cause(s)ofsignificantchangeofthetotalinvestmentinR&Dintheoperatingrevenue
Inapplicable
NotetothecauseofsignificantchangeinthecapitalizationrateofinvestmentinR&Dandnotetothereasonability Inapplicable
Numberofpatentsinthepasttwoyears
|||||
|-|-|-|-|
||Applicationsubmitted|Granted|Accumulatednumbergrantedendedthereportingperiod|
|Invention|5|8|15|
|Utilitymodel|10|8|49|
|Design|45|48|213|
|Movementofthecoretechnologyteamorkeytechnicalstaff|Nil|||
|Doesitbelongtoahi-techenterprisecertifiedbytheMinistry?|Yes|||

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText 5. Cashflow
InCNY
|||||
|-|-|-|-|
|Items|2015|2014|Year-on-yearincrease/decrease|
|Sub-totalofcashflowreceivedfromoperationactivities|3,696,332,927.45|3,792,449,143.86|-2.53%|
|Subtotalofcashflowpaidforoperatingactivities|3,300,095,935.04|3,503,259,512.89|-5.80%|
|Netcashflowarisingfromoperatingactivities|396,236,992.41|289,189,630.97|37.02%|
|Sub-totalofcashflow-inreceivedfrominvestingactivities|340,367.11|51,919.04|555.57%|
|Sub-totalofcashflowpaidforinvestmentactivities|230,352,063.28|187,300,953.70|22.98%|
|Netcashflowarisingfrominvestmentactivities|-230,011,696.17|-187,249,034.66|22.84%|
|Sub-totalcashflowreceivedfromfinancingactivities|2,937,413,848.66|1,573,439,386.01|86.69%|
|Sub-totalcashflowpaidforfinancingactivities|2,582,723,880.06|1,667,942,595.84|54.84%|
|Net cash flow arising fromfinancingactivities|354,689,968.60|-94,503,209.83|-475.32%|
|Netincreaseincashandcashequivalents|522,507,805.39|7,216,959.80|7,140.00%|

Notetothemajorinfluencefactorsforthesignificantchangeintherelevantyear-on-yeardata
Netcashflowarisingfromoperatingactivities:
In the reporting period, the year-on-year growth of the net cash flow arising from operating activities by37.02% was mainlyduetothatfacingtheincreasinglycomplicatedmarketenvironment,theCompanycontrolledthenetworkextension speedandenhancedinventoryprocurementandstrengthenedthecashflowmanagement.
Cashinflowfromfinancingactivities:
In the reporting period, cash inflow from financing activities increased by86.69% over the same period of the previous year was mainly due to that the Company grasped the opportunity that the central bank lowered the benchmar interest rateseveraltimesinthereportingyearandloweredtheinterestpaymentbymeansofexchangingthebankloansahead oftime.Inaddition,theCompanyfinishedthenon-publicissuingof45,977,011A-sharesfromwhichtheCompanyraised capitalwithnetamountofCNY582,924,373.62.
Cashoutflowforfinancingactivities:
In the reporting period, cash outflow for financing activities increased by54.84% over the same period of the previous
year was mainly due to that the Company grasped the opportunity that the central bank lowered the benchmar interest
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText rateseveraltimesinthereportingyearandloweredtheinterestpaymentbymeansofexchangingthebankloansahead oftime.
Netincreaseofcashandcashequivalent:
Inthereportingperiod,netincreaseofcashandcashequivalentroseby7,140.00%wasmainlyduetothattheCompany successfully complete non-public issuing of 45,977,011 A-shares and raised net amount of capital totaling CNY 582,924,373.62. Since the raised capital is earmarked for the designated purpose, the retained book value at year end wasCNY485,499,836.55.
Cause(s)ofsignificantdifferenceinthenetcashflowarisingfromtheoperatingactivitiesandthenetprofitinthereporting year
Inapplicable
III. Analysis on Non-Principal Businesses
Inapplicable
IV. Assets and Liabilities
1. Significant Changes inAssetsComposition
InCNY
||||||||
|-|-|-|-|-|-|-|
||Endof2015||Endof2014||Proportionincreased/decreased|Notetosignificantchanges|
||Amount|Proportionintotalassets|Amount|Proportionintotalassets|||
|Monetarycapital|638,962,875.93|15.05%|116,455,070.54|3.18%|11.87%||
|Accountsreceivable|304,725,676.29|7.18%|351,276,905.53|9.60%|-2.42%||
|Inventories|2,092,691,019.29|49.28%|2,133,791,024.32|58.34%|-9.06%||
|Investmentbasedrealestate|216,948,193.02|5.11%|226,091,938.89|6.18%|-1.07%||
|Longtermequityinvestment|43,221,572.05|1.02%|42,389,759.91|1.16%|-0.14%||
|Fixedassets|361,979,828.01|8.52%|323,732,870.58|8.85%|-0.33%||

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
|||||||
|-|-|-|-|-|-|
|Construction-in-process|173,189,274.57|4.08%|51,389,263.53|1.40%|2.68%|
|Shorttermloan|988,186,200.00|23.27%|989,445,000.00|27.05%|-3.78%|
|Longtermloan|90,994,964.33|2.14%|139,952,425.65|3.83%|-1.69%|

2. Assets and liabilities measuredbased onfair value
Inapplicable
V. Investment
1. General
Inapplicable
2. Significant equityinvestment acquiredinthe reportingperiod
Inapplicable
3. Significant non-equityinvestment inprocess inthereporting period
Inapplicable
4. Financialassets investment
(1) Portfolioinvestment
Inapplicable
(2) Investment inderivatives
Inapplicable
5. Applicationof raisedcapital
(1) Generalapplicationof theraised capital
InCNY10,000
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Yearofraising|Wayofraising|Totalcapitalraised|Totalamountofraisedcapital|Totalaccumulativeamountof|Totalraisedcapitalwhose|Totalaccumulative|Proportionofthetotalaccumula|Totalraisedcapitalnotyet|Applicationandstatusoftheraised|Amountoftheraisedcapital|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||usedinthereportingperiod|raisedcapitalusedaccumulated|applicationpurposehasbeenchangedinthereportingperiod|raisedcapitalwhoseapplicationpurposehasbeenchanged|tiveraisedcapitalwhoseapplicationpurposehasbeenchanged|used|capitalunused|idledformorethan2years|
|2012|Issuingcompanybonds|40,000|0|40,000|0|0|0.00%|0|Inapplicable|0|
|2015|Non-publicissuingofA-shares|58,550|16,358.41|16,358.41|0|0|0.00%|42,191.59|Inapplicable|0|
|Total|--|98,550|16,358.41|56,358.41|0|0|0.00%|42,191.59|--|0|
|NotetoGeneralApplicationoftheRaisedCapital|||||||||||
|The Company held the 33rd meeting of the Sixth Board of Directors and 2012 1st extraordinary general meetingrespectivelyonJune19,2012andJuly6,2012.ThemeetingsreviewedandapprovedtheProposalofIssuingCompanyBonds, etc. according to which, the Company planned to issue company bonds with a size not exceeding CNY400millionandwithatermnotexceeding5years(with5yearsinclusive)whichwouldbeusedforreplacingbankloanandreplenishing the working capital. On September 9, 2012, approved through verification by China Securities RegulatoryCommission (CSRC) with Document ZHENG JIAN XU KE [2012] No. 1209, the Company was approved to issuecompanybondswiththesizenotexceedingCNY400million.TheCompanyissuedCNY400millionofbondsinthesaidperiod.After deduction of the issuing costs, the net raised capital amounting to CNY396.9 million was remitted to thebank account designated by the Company on March 5, 2013. RSM China CPAs, the CPAs engaged by the CompanyissuedthecapitalverificationreportsofZHONGRUIYUEHUAYANZI[2013]No.0053,ZHONGRUIYUEHUAYANZI[2013]No.0054andZHONGRUIYUEHUAYANZI[2013]No.0055respectivelyforthefrozencapitalforsubscriptionof the on-line bond issuing, the frozen capital for subscription of the off-line placement and the actual raised capitalconditions.Approved by Shenzhen Stock Exchange with Document SHEN ZHENG SHANG [2013] No. 99, the bondshave been listed with both SZSE Centralized Bidding System and the ComprehensiveAgreement Based TransactionPlatformcommencingfromMarch29,2013withtheabbreviationofthesecurityas“12YADABOND”andsecuritycodeas“112152”.Theissuingofthecompanybondshasbeencompleted.Thecapitalraisedfromtheissuingwasremittedtothe bank account designated by theCompany on March5, 2013. Up to now,the Companyhad used up allthe raisedcapital and no change has taken place in the application purpose of the raised capital. By February 29, 2016, theCompanyhadredeemedallthecompanybondsandthecompanybondshavebeendelisted.TheCompanyheldthe18thmeetingoftheSeventhBoardofDirectgorsand2014AnnualGeneralMeetingrespectivelyonApril 16, 2015 and June 17, 2015. The meetings reviewed and approved the Proposal on the Plan for Non-publicIssuing ofA-shares to the Specified Investors, etc., according to which the Company planned to issue in a non-publicwayA-sharestonomorethan10(with10inclusive)specifiedinvestorswiththetotalraisedcapitalnotexceedingCNY600 million, which would be applied for four projects, including the project of launching new FIYTA watches andsupplement the working capital. The application for non-public issuing of A-shares was reviewed and approved by|||||||||||

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText CSRC Securities Issuance Examination Committee (CSIEC) on October 30, 2015. On November 17, 2015, the Company received Official Reply to FIYTA Holdings Ltd. on Approval for Non-public Issuing ( ZHENG JIAN XU KE[2015] No. 2588 which authorized the Company to issue no more than 46,911,649 newshares in non-public way.The actualnumberofA-sharesactuallyissuedinthenon-publicissuingactivitywas45,977,011sharesandtheraisedcapital amountedtoCNY599million.Afterdeductionoftheunderwritingfee,thecarisedcapitalamountedtoRMB585million. After deduction of the issuing costs, the net raised capital amounting to CNY583 million was remitted to the bank account designated by the Company on December 18, 2015. Grant Thornton Certified Public Accountants (Special GeneralPartnership)issuedtheCapitalVerificationReportsZHITONGYANZI(2015)No.441ZC0653,ZHITONGYAN ZI (2015) No. 441ZC0652 respectively for the raised capital.TheA-shares issuedin a non-public way were registered for listing on January 15, 2016 and locked for 12 months. The Company has published the Announcement of CommitmentconceringtheSharesIssuedinaNon-publicWay.Uptonow,thecapitalraisedfromnon-publicissuingof A-sharesisgoingtobeappliedfortheoriginallydesignatedapplicationpurposeandthereexistsnosuchacasethatthe applicationpurposehasbeenchanged.Theconcernedfollow-upcommitmentsareinprocessofimplementation. (2) PromisedProjectswithRaised Capital
InCNY10,000
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Promisedinvestmentprojectsandinvestmentwiththeover-raisedcapital|Hastheprojectbeenchanged(includingpartialchange)|Totalpromisedinvestment withraisedcapital|Totalinvestmentafteradjustment(1)|Amountinvestedinthereportperiod|Amountaccumulativelyinvesteduptotheendofthereportperiod(2)|Investmentprogressbytheendofthereportperiod(%)(3)=(2)/(1)|Datewhentheprojecthasreachedthepredictedapplicablestatus|Resultrealizedinthereportingperiod|Hasthepredictedoperationresultbeenreached?|Hassignificantchangetakenplaceinthefeasibilityoftheproject?|
|Investmentprojectsaspromised|||||||||||
|Repaymentofbankloan|No|30,000|30,000|0|30,000|100.00%||0|Yes|No|
|Replenishingtheworkingcapital.|No|10,000|10,000|0|10,000|100.00%||0|Yes|No|
|ProjectofLaunchingNewFIYTAWatches|No|18,000|18,000|18.34|18.34|0.10%||0|Yes|No|
|FIYTAE-commerceproject|No|12,000|12,000|1,213.74|1,213.74|10.11%||0|Yes|No|
|FIYTABrandMarketingPromotionProject|No|10,000|10,000|4,700.65|4,700.65|47.01%||0|Yes|No|
|TechnicServiceWebsiteConstructionProject|No|5,000|5,000|425.66|425.66|8.51%||0|Yes|No|
|Replenishingworkingcapital|No|15,000|15,000|10,000.02|10,000.02|66.67%||0|Yes|No|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Subtotalofinvestmentprojectsascommitted|--|100,000|100,000|16,358.41|56,358.41|--|--|0|--|--|
|Intendedinvestmentwiththeover-raisedcapital|||||||||||
|Inapplicable|||||||||||
|Subtotaloftheintendedinvestmentwiththeover-raisedcapital|--|0|0|0|0|--|--|0|--|--|
|Total|--|100,000|100,000|16,358.41|56,358.41|--|--|0|--|--|
|Caseoffailuretosatisfytheplanprogressorpredictedrevenueandthecause(basedonspecificproject)|Inapplicable||||||||||
|Notetothesignificantchangeinthefeasibilityofaproject|Inapplicable||||||||||
|Amount,applicationandapplicationprogressoftheover-raisedcapital|Inapplicable||||||||||
|Changeofthesiteforimplementationoftheprojectinvestedwiththeraisedcapital|Inapplicable||||||||||
|Adjustmentofthewayofimplementationoftheprojectinvestedwiththeraisedcapital|Inapplicable||||||||||
|Earlierinvestmentinandreplacementoftheprojectinvestedwiththeraisedcapital|Applicable||||||||||
||Thenetamountoftheraisedcapitalfromnon-publicissuingofA-sharesisCNY583million.AccordingtotheProposalforReplacingtheSelf-raisedFundEarlierInvestedintheProject(s)tobeInvestedwithRaisedCapitalwiththeRaisedCapitalreviewedandapprovedatthe5thmeetingoftheEighthBoardofDirectors,theCompanydecidedtoreplacetheself-raisedcapitalinvestedearlierwiththeraisedcapitalamountingtoCNY63.5839million.Thesaidreplacementwiththeraisedcapitaldoesnotcontradicttheimplementationplanoftheprojectstobeinvestedwiththeraisedcapitalfromthenon-publicissuingandshallnotaffectthenormalprocessoftheprojectstobeinvestedwiththeraisedcapital.Thereexistsnosuchsituationthattheinvestmentplanfortheraisedcapitalhasbeenchangedindisguisedformorthatithasharmedtheshareholders’interest.Thetimedistancefromreplacementoftheraisedcapitaltotheentryoftheraisedcapitalintothebankaccountshouldnotbelessthan6months.||||||||||
|Theidledraisedcapitalusedtoreplenishworkingcapitalfortimebeing|Inapplicable||||||||||

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
|||
|-|-|
|Amountofthebalanceoftheraisedcapitalincurredinprojectimplementationandthecause|Inapplicable|
|Applicationoftheraisedcapitalnotyetusedandthewhereabouts|Inapplicable|
|Applicationoftheraisedcapitalandtheexistingproblemsnotdisclosedorothersituation|Inapplicable|

(3) Change ofthe Projects Investedwiththe RaisedCapital
Inapplicable
VI. Sales of Significant Assets and Equity
1. Salesof Significant Assets
Inapplicable
2. Salesof Significant Equity
Inapplicable
VII.Analysis on Principal Subsidiaries and Mutual Shareholding Companies
ParticularsabouttheprincipalsubsidiariesandmutualshareholdingcompanieswhichmayaffecttheCompany’snetprofitbyover10%.
InCNY
||||||||||
|-|-|-|-|-|-|-|-|-|
|CompanyNames|Companytype|Principalbusiness|Leadingproductsandservices|Totalassets,inCNY|Netassets(CNY)|TurnoverinCNY|Operatingprofit(inCNY)|Netprofit(inCNY)|
|ShenzhenHarmonyWorldWatchesCenterCo.,Ltd.|Subsidiary|Retail|Mainlyengagedinsalesofworldfamousbrandwatch,includingpurchase,salesandmaintenance|2,001,459,574.91|716,500,947.19|2,140,836,385.85|12,974,393.15|15,267,549.19|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
||||||||||
|-|-|-|-|-|-|-|-|-|
||||serviceoftimepiecesandparts||||||
|FIYTASalesCo.,Ltd.|Subsidiary|Retail|Salesandrepairingofclocksandwatchesandparts,salesofjewelryandornaments.|804,054,026.32|10,804,452.90|939,412,594.13|-38,279,561.17|-25,832,488.57|
|ShenzhenFIYTASophisticatedTimepiecesManufactureCo.,Ltd.|Subsidiary|Manufacture|MainlyengagedinproductionandsalesofFIYTAwatches,includingproductionandmaintenanceofclocksandwatches,anddrivingunits,sparesandparts,sophisticatedtimepieces.|270,530,028.80|166,337,330.43|524,115,539.77|175,996,805.91|150,382,955.96|
|ShenzhenFIYTATechnologyDevelopmentCo.,Ltd.|Subsidiary|Manufacture|R&D,productionandsalesofwatches,production,machining,salesandtechnologydevelopmentofsophisticatedparts.|91,310,910.62|54,705,773.20|171,966,217.92|16,115,454.65|14,803,650.69|
|FIYTA(HongKong)Limited|Subsidiary|Retail|Mainlyengagedintradeandoverseasmarketdevelopment|448,491,009.49|164,332,147.05|116,126,118.79|-3,930,979.32|-4,235,393.48|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
||||||||||
|-|-|-|-|-|-|-|-|-|
||||ofFIYTAwatches||||||
|ShenzhenSymphonyTradingCo.,Ltd.|Subsidiary|Retail|Salesofclocksandwatchesandgiftsandconsultationofrelevantinformationandotherdomestictrading|26,980,197.16|2,463,814.45|31,596,993.99|6,323,612.14|4,968,483.36|
|ShanghaiWatchIndustryCo.,Ltd.|Mutualshareholdingcompany|Manufacture|Salesofwatchesandsparesandparts|106,306,675.76|96,668,196.88|91,465,902.16|3,724,158.84|3,327,248.55|

Subsidiariesacquiredanddisposedinthereportingperiod
Inapplicable
Particularsabouttheprincipalholdingandmutualshareholdingcompanies
Inapplicable
VIII. Structurized Entities Controlled by the Company
Inapplicable
IX. Development Prospect
(I) Development Trendof the Industry
In 2016, the environment of the macro-economy and retail and consumption industry is predicted to be confronted with bigger pressure in growth. The consumption situation of the domestic watch retail market shall still not be optimistic. However, watch belongs to a commodity of affection, with knowledge and affection as the kernel. It is a perfect combination of art, aestjetocs amd subtle technology and an important carrier for displaying life taste. Despite the short termpressuretobeconfrontedinbenefitgrowth,withcontinuousdeepeningofvariousreformmeasuresinChina,gradualimprovementofthemarketenvironmentandupgradingofpeople’slifequality,westillkeepoptimisticjudgmentofthelong termdevelopmentpotentialofthewatchmarket.
(II) Development Strategy
In2016,theCompanyshallcontinuetosticktothecorporatephilosophyandbranddevelopmentstrategywiththeattitude
ofinnovationandprogressiveness,arousealleffortstoachieveprosperity,fearlessnessofhardship,facechallenges,do
the best in the Chinese market based on the annual strategic theme of “deep ploughing, integration, innovation and
beneficiation”,keepaclosewatchonthe“Chinesepeople’smarket”,takethecustomers’demandastheorigin,carefully
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText study the trend of the industry, accurately identify thecustomers’demand, continue to build excellent own brand ethnic group, and high efficiency watch retail comprehensive service provider, put forth efforts to carry out brand building, customerstudy,modelinnovationandnewbusinessexploration,etc.,continuouslyimprovetheearningpower,andstrivetorealizebettergrowthoftheCompany’sperformances.
(III)AnnualOperationPlanin2016
1.FIYTAWatchIndustryshallcenterontheannulaworkthemof“integration,innovation,efficiencyandbenefit”for,carry out full implementation of the customer study work, see through clearly and grasp the trend of youngconsumers’ demands, furtherrefine andenrichDNAofourown brands,acceleratelaunchingofnewproducts,enhancecost control ability; increase investment in precision marketing through the Internet, enhance brand exposure, improve the brand perception;strengthenconstructionofshoppingguidecapacity,andoptimizechanneloperationcapability.
2.HarmonyWorldWatchesCenterCo.,Ltd.shallcenterontheannualworkthemeof“values,customers,deepploughing andinnovation",putforthefforttobuild“highaspiration,highstandardandhighefficiency”team;respondactivelytothe changeofthemarketenvironment,carryoutinadeep-goingwaycustomerstudy,improveexcellentserviceability;track the operation status of physical stores in a rolling way, continuously carry out “per unit yield improvement” work; timely optimizeandadjustshopfront layoutandproductstructure,improveassetsoperationefficiency; carryforward upgrading and transition of business model, gradually construct online operation and service platform and enhancecustomers’ consumptionexperience.
(IV)CapitalNecessaryforFutureDevelopment
According to theCompany’s business development plan and financial budget planning in 2016, for the purpose of satisfying the capital demand for investment and operation and at the same time timely seize the opportunity of merger whichistobebroughtaboutfromchangeofthemarket,theCompanyisgoingtoapplyforbankcreditlinenotexceeding CNY1.8billioninvariousways,includingsecuredloan,loansthroughsubsidiaries,mortgage,etc.
(V)RisksPossibilitytobeConfrontedwith
Affectedbythemacro-economicandpolicyfactors,China’swatchretailmarketisconfrontedwithchallengeinoperation andupgrading,showingthatthegrowthoftheretailmarkethassloweddown ongeneralbasis,famousbrandwatches, especially high-end famous brand watches, have been restricted in consumption. However, the enviroment of the domesticfamousbrandretailsectortendstobegraduallyrational;donationbasedconsumptionhasbeenreducedrapidly; andtheproportionofordinaryconsumptionisincreasingcontinuously.Thehome-madebrandwatchestendtobegentle after the past twoyears’ high speed growth and the competition fo the domestic brands is becoming more and more intense and intense. Homogeneity of low-price products is still serious. Channel expansion is developing in depth and horizontal innovation is in extension. Meanwhile, with continuously development of theCompany’s business, risks in channelsandassetsalsotendtobeincrescent.
X. Statement of Such Activities as Reception of Survey, Communications, Interview, etc.
1. RegistrationForm of the Activities, such as Reception of Survey, Communications, Interviews,
etc.inthe ReportingPeriod
|||||
|-|-|-|-|
|Receptiontime|Wayofreception|Typesofvisitorsreceived|Indexofbasicinformationofsurvey|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
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|-|-|-|-|-|
|August20,2015|Fieldsurvey||Institution|http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000026|
|August26,2015|Fieldsurvey||Institution|http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000026|
|September14,2015|Fieldsurvey||Institution|http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000026|
|November5,2015|Fieldsurvey||Institution|http://irm.cninfo.com.cn/ircs/ssgs/companyIrmForSzse.do?stockcode=000026|
|Numberofreception||4|||
|Numberofinstitutionsreceived||28|||
|Numberofpersonsreceived||29|||
|Numberofothervisitorsreceived||0|||
|Isthereanyimportantinformationdisclosed,revealedorleakedtothepublic?||No|||

2. RegistrationForm of the Activities, such as Reception of Survey, Communications, Interviews, etc.from the Endof the ReportingPeriod totheDate of Disclosure
Inapplicable
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText Chapter 5 Significant Events
I. Profit Distribution for Common Stock and Conversion of Capital Reserve into Share Capital
Preparation,ImplementationorAdjustmentofthePolicyforCommonStockProfitDistribution,EspeciallythePolicyfor CashDividendDistribution
The 18th Meeting of the Seventh Board of Directors held onApril 16, 2015 and 2014Annual General Meeting held on June17,2015reviewedandapprovedtheProposalforAmendmentoftheArticlesofAssociation,accordingtowhichthe profit distribution policy as specified inArticle 155 of theArticles ofAssociation was amended correspondingly. For the detail,refertotheAnnouncementontheResolutionsofthe18thMeetingoftheSeventhBoardofDirectors2015-008and AnnouncementoftheResolutionsof2014AnnualGeneralMeeting2015-020andtheBillofAmendmentoftheArticlesof Association.
|||
|-|-|
|SpecialNotetotheCashDividendDistributionPolicy||
|DoesthepolicycomplywiththeprovisionsoftheArticlesofAssociationortherequirementsoftheresolutionoftheGeneralMeeting:|Yes|
|Arethedividenddistributionrateandproportiondefiniteandclear:|Yes|
|Aretherelevantdecision-makingproceduresandmechanismcomplete:|Yes|
|Doindependentdirectorsdotheirdutiesandplaytheirrole:|Yes|
|Isthereanyopportunityavailableforminorityshareholderstofullyexpresstheiropinionsandappealandhavelegitimaterighttogetsufficientprotection:|Yes|
|Aretheconditionsandproceduresoflaw-complianceandtransparentincasethecashdividenddistributionpolicyhasbeenadjustedoraltered:|Yes|

Note: The Company should disclose the common stock profit distribution policy in the reporting period, especially preparation, implementation or adjustment of the cash dividend distribution policy, specify whether the profit distributionpolicycomplieswiththeArticlesofAssociationandreviewprocedures,whethertheminorityshareholders’legalinterests have been fully protected, whether independent directors have expressed their opinions on the policy, whether the dividenddistributioncriteriaanddistributionrateareexplicit;andwhethertheconditionsandproceduresforadjustmentor alterationoftheprofitdistributionpolicybeoflawcomplianceortransparent.
The profit distribution preplan or proposal and the preplan or proposal of conversion of the capital reserve into share
capitalinthepastthreeyears(withthereportingperiodinclusive):
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText According to the provisions concerning cash dividend distribution in the Articles of Association, the Company preparedspecificcashdividenddistributionplanaftertheBoardofDirectorsandtheShareholders’GeneralMeetinghavereviewed strictly according to the requirements. In the past three years, the Company has well implemented the cash dividend distribution policy, fully asked for the independentdirectors’ opinions, effectively ensured the minorityshareholders’ benefitandmadetimelyandaccuratedisclosureinitsannualreportandtherelevantmedia,
ProfitDistributionPlanin2013:Withthetotalsharecapitalof392,767,870sharesasatDecember31,2013asthebase, theCompanydistributedtothewholeshareholderscashdividendatCNY1.00forevery10shares(withtaxinclusive),0 bonusshareforevery10shares;convertednoreserveintosharecapital.
ProfitDistributionPlanin2014:Withthetotalsharecapitalof392,767,870sharesasatDecember31,2014asthebase, theCompanydistributedtothewholeshareholderscashdividendatCNY1.00forevery10shares(withtaxinclusive),0 bonusshareforevery10shares;convertednoreserveintosharecapital.
ProfitDistributionPlanin2015:Withthetotalsharecapitalof438,744,881sharesasatJanuary15,2016asthebase,the Company is going to distribute to the whole shareholders cash dividend at CNY 1.00 for every 10 shares (with tax inclusive),0bonusshareforevery10shares;convertednoreserveintosharecapital.
Theaccumulativeamountofcashdividenddistributedinthepastthreeyearstook92.42%oftheannualaveragenetprofit inthepastthreeyears,whichcomplieswiththerulesandregulations.
Statementofcashdividendsdistributedinthepastthreeyears(withthereportingperiodinclusive)
In CNY
|||||||
|-|-|-|-|-|-|
|YearofDividendDistribution|AmountofCashDividend(includingtax)|Net profit attributableto the Company’sshareholders in theconsolidatedstatements of the yearofdividenddistribution|Ratio of the net profitattributable to theCompany’sshareholders taken inthe consolidatedstatements|Amountofcashdividenddistributedinotherway(s)|Proportionofthecashdividenddistributedinotherway(s)|
|2015|43,874,488.10|121,702,057.44|36.05%|0.00|0.00%|
|2014|39,276,787.00|145,591,136.39|26.98%|0.00|0.00%|
|2013|39,276,787.00|130,125,124.48|30.18%|0.00|0.00%|

Inthereportingperiod,boththeCompany’sprofitandtheparentcompany’sprofitavailableforshareholdersofcommon stockwerepositivebutnocommonstockcashdividenddistributionproposalhasbeenputforward.
Inapplicable
II. Preplan for Profit Distribution and Conversion of Capital Reserve into Share Capital in the Reporting Period
|||
|-|-|
|Bonussharesdistributedattherateof___(share)forevery10shares|0|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
|||
|-|-|
|DividenddistributedattherateofCNY___forevery10shares(withtaxinclusive)|1.00|
|Numberofsharesconvertedforevery10shares(shares)|0|
|Sharecapitalbaseforthedividenddistributionpreplan(shares)|438,744,881|
|Totalcashdividenddistributed(withtaxinclusive)|43,874,488.10|
|Profitavailablefordistribution(CNY)|469,841,589.40|
|Proportionofthecashdividendinthetotalprofitavailablefordistribution(%)|100.00%|
|CashDividendDistributionthisTime||
|Others||
|Detailedinformationforprofitdistributionorconversionofcapitalreserveintosharecapitalpreplan||
|TheCompany’sprofitdistributionplanfor2015wasreviewedandapprovedatthe6thmeetingoftheEighthBoardofDirectorsheldonMarch8,2016andisgoingtobesubmittedto2015AnnualGeneralMeetingforreview.Accordingtotheplan,theCompanyisgoingtodistributecashdividendattherateofCNY1.00forevery10shares(withtaxinclusive)and0bonussharetothewholeshareholderswiththetotalsharecapitalasatJanuary15,2015totaling438,744,881sharesasthebase;andnopublicreserveisgoingtobeconvertedintosharecapital.TheprofitdistributionplanissubjecttoreviewandapprovaloftheGeneralMeetingbeforeimplementation.||

III. Implementation of Commitments
1. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors,supervisors, senior executives or other related parties inthe reporting period andcommitmentsunfinished inimplementationat theendof thereportingperiod
||||||||
|-|-|-|-|-|-|-|
|Commitments|Promiser|Commitmenttype|Description|Commitmenttime|Commitmentdeadline|Implementationstatus|
|CommitmentforEquitySeparationReform|||||||
|Commitmentsintheacquisitionreportorthewrittenreportonchangeofequity|||||||
|Commitmentmadeatthetimeofassetreorganization|||||||
|CommitmentmadeatIPOorre-financing|FIYTAHoldingsLtd.|Othercommitments|TheCompanycommitsthatincaseitispredictedthattheCompany|February27,2013|Deadlineofthebonds(Thevalidtermofthebondsis5yearsattached|Implementationfinished(thecompanybondshadbeenredeemed|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
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|-|-|-|-|-|-|
|||maybeunabletodulypaytheprincipalandinterestofthebondorfailtodulypaytheprincipalandinterestofthebondwhenitisdue,theCompanyshallatleasttakethefollowingmeasures:1.notprofitdistributiontotheshareholdersshallbeconducted.2.implementationofanycapitalexpenditureprojects,suchasmaterialexternalinvestment,acquisitionandmerger,etc.shallbesuspended.3.salariesandbonustothedirectorsandseniorexecutivesshallbeadjusteddownorsuspended.4.Noneofthekeyofficersmaybetransferredout.||withtheinvestors’optionofsellingback,theCompany’soptionofredemptionandoptionofup-regulationofthenominalinterestrateattheendofthe3rdyear).|allanddelistedbyFebruary29,2016)|
|CaitongFundManagem|Commitmentonrestrictedsales|Commitmentoftheinvestors|January15,2016|1year|Inprocessofimplementatio|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
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|-|-|-|-|-|-|-|
||entCo.,Ltd.;MANULIFETEDAFundManagementCo,Ltd.;XizangInvestmentCo.,Ltd.;GoldenEagleAssetManagementCo.,Ltd.;SwsMuFundManagementCo.,Ltd|ofshares|ofthenon-publicissuing-CaitongFundManagementCo.,Ltd.,MANULIFETEDAFundManagementCo,Ltd.,XizangInvestmentCo.,Ltd.,GoldenEagleAssetManagementCo.,Ltd.,SwsMuFundManagementCo.,Ltd:thesharessubscribedbythemfromthenon-publicissuingshallnotbetransferredin12monthscommencingfromthedateroflisting.|||n|
|Equityincentivecommitment|||||||
|Othercommitmentstotheminorityshareholders|AVICInternationalInvestmentCo.,Ltd.|Shareacquisitioncommitment|BasedontheunderstandingoftheChinesecapitalmarketsituationandtheconfidenceintheCompany’ssustainableandsteadydevelopment,inorderto|July11,2015|RefertotheAnnouncementonCommitmentfortheSharesAcquired(2015-022)|Inprocessofimplementation|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
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|-|-|-|-|-|-|
|||safeguardthewholeshareholders’interestandpromotestabilityofthecapitalmarketwithpracticalaction,andaccordingtotheNoticeofChinaSecuritiesRegulatoryCommissiononAcquisitionoftheCompany’sSharesbytheMajorShareholders,SupervisorsandSeniorExecutivesoftheListedCompany(ZHENGJIANFA[2015]No.51)andtherelevantlawsandregulations,AVICInternational,astheactualcontrollerofFIYTA,isdesiroustoacquireFIYTAsharesthroughAVICInternationalInvestmentCo.,Ltd.,thepersonactinginconcert||||
|AVIC|Commitmenton|AVIC|July13,2015|Refertothe|Inprocess|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
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|-|-|-|-|-|-|
||InternationalInvestmentCo.,Ltd.|restrictedsalesofshares|InternationalInvestmentCo.,Ltd.,thepersonactinginconcertoftheCompany’sactualcontroller,acquired100,000sharesoftheCompany’sstockthroughthesecondarymarketonJuly13,2015,andcommittedthattheCompany’ssharesithasacquiredshallnotbetransferredduringtheoutperformingperiodandin6monthsaftertheoutperforming.|AnnouncementonCommitmentfortheSharesAcquired(2015-022)|ofimplementation|
|Havethecommitmentsbeenimplementedinatimelyway|Yes|||||
|Ifthecommitmenthasnotbeenimplementedattheendofthereportingperiod,itisnecessarytoexplainthespecificreasonoffailureinimplementationandthefutureworkplan.|Inapplicable|||||

2. There existed profit anticipation for theCompany’s assets or projects while the reporting period was still within the duration of the profit anticipation. The Company made explanation on whether theassets orprojects reached theanticipatedprofit andthe cause
Inapplicable
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText IV. Non-operational Occupancy of theCompany’s Capital by the Controlling Shareholder and its Related Parties
Inapplicable
V. Explanation of the Board of Directors, the Supervisory Committee and Independent Directors (if any) on the “QualifiedAuditor’s Report” issued by the CPAs in the Reporting Period
Inapplicable
VI. Explanation on the Changes in the Accounting Policy, Accounting Estimate, and Accounting Method in Comparison with the Financial Report of the Previous Year Inapplicable
VII. Explanation on Serious Accounting Errors Occurred in the Reporting Period Necessary to be Restated Retrospectively
Inapplicable
VIII. Explanation on the Changes in the Scope of the Consolidated Statements in Comparison with the Financial Report of the Previous Year.
Inapplicable
IX. Engagement/Disengagement of CPAs
CPAscurrentlyengaged
|||
|-|-|
|NameofthedomesticCPAs|Grant Thornton Certified Public Accountants (Special GeneralPartnership)|
|RemunerationtothedomesticCPAs(inCNY10,000)|95|
|SuccessiveyearsofthedomesticCPAsofferingauditingservices|2|
|NamesofthecertifiedpublicaccountantsfromthedomesticCPAs|Su Yang and Chen Zhifang|

HastheCPAsbeenchangedinthecurrentperiod?
No
AbouttheCPAsforauditingtheinternalcontrol,financialconsultantorsponsorappointedbytheCompany
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText The 17th meeting of the Seventh Board of Directors held on March 10, 2015 and 2014Annual General Meeting held on June 17, 2015 reviewed and approved the Proposal for Payment of the Audit Fee of Year 2014 and Renewal of theCompany’s Auditor for Year 2015, according to which the Company decided to renew engagement of Grant Thornton Certified Public Accountants (Special General Partnership) as the auditor of theCompany’s financial report and internal control of year 2015 for a term of oneyear. During the reporting period, the Company paid audit fee amounting to CNY 650,000.00 for auditing the financial report and CNY 300,000.00 for auditing the internal control to Grant Thornton CertifiedPublicAccountants(SpecialGeneralPartnership).
Inthereportingperiod,theCompanyengagedHuachuangSecuritiesCo.,Ltd.asthesponsorfortheprojectofnon-public issuingofA-shareswithHuangJunyiandLiXiuminasthesponsorshiprepresentatives.Duringthereportingperiod,the CompanytotallypaidthesponsorshipfeeamountingtoCNY1.2million.
X. Listing Suspension or Delisting Possibly to be Confronted with after Disclosure of the Annual Report
Inapplicable
XI. Matters concerning Bankruptcy Reorganization
Inapplicable
XII. Significant Lawsuits and Arbitrations
Inapplicable
XIII. Penalty and Rectification
Inapplicable
XIV. Integrity of the Company and its Controlling Shareholder and Actual Controller There existed neithercourt judgmentin forceremaining unimplementednor bigoutstanding liabilitiesdueineither AVIC International Holdings Limited, theCompany’s controlling shareholder or AVIC International, theCompany’s actual controller.
XV. Implementation of theCompany’s Equit Incentive Plan, Employee Stock Ownership Plan or other Employee Incentive Measures
Inapplicable
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText XVI. Significant Related Transactions
1. RelatedTransactions RelatedwithDay-to-Day Operations
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|RelatedParties|Relationship|Typeofrelatedparties|DescriptionofRelatedTransactions|Principleofpricingoftherelatedtransactions|Priceofrelatedtransactions|Amountoftherelatedtransaction(inCNY10,000)|Proportionintheamountofthesimilartransactions(%)|Transactionquotaasapproved(inCNY10,000)|Hastheapprovedquotabeenexceeded?|Wayofsettlementfortherelatedtransaction|Marketprice|Disclosuredate|Disclosureindex|
|RainbowSupermarket|Commoncontroller|Revenuefromprincipalbusiness|Salesofgoods|Marketprice|Inapplicable|8,167.79|2.58%|12,000|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|ChinaNationalAviationIndustryGroupCo.|Eventualcontroller|Revenuefromprincipalbusiness|Salesofgoods|Marketprice|Inapplicable|48.58|0.01%|2,000|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|ShennanHoldings.,Ltd.|Commoncontroller|Revenuefromprincipalbusiness|Salesofgoods|Marketprice|Inapplicable|1,166.89|30.15%|5,000|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|CATICRealEstate|Commoncontroller|Revenuefromprincipalbusiness|Propertylease|Marketprice|Inapplicable|156.98|1.65%|180|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|CATICProperty|Commoncontroller|Revenuefromprincipalbusiness|Propertylease|Marketprice|Inapplicable|651.7|6.87%|700|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|CATICSecurities,Co.,Ltd.|Commoncontroller|Revenuefromprincipalbusiness|Propertylease|Marketprice|Inapplicable|113.96|1.20%|120|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|ShenzhenCATICCityDevelopmentCo.,Ltd.|Commoncontroller|Revenuefromprincipalbusiness|Propertylease|Marketprice|Inapplicable|2.32|0.02%|10|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|Shenzhen|Common|Revenue|Property|Market|Inapplica|27.74|0.29%|40|No|Bank|Inapplica|March|www.cni|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
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|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|CATICHuachengPropertyDevelopmentCo.,Ltd.|controller|fromprincipalbusiness|lease|price|ble|||||accounttransference|ble|10,2016|nfo.com.cn|
|ShenzhenCATICCityPropertyDevelopmentCo.,Ltd.|Commoncontroller|Revenuefromprincipalbusiness|Propertylease|Marketprice|Inapplicable|37.63|0.40%|50|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|ShenzhenCATICGuanlanRealEstateDevelopmentCo.,Ltd.|Commoncontroller|Revenuefromprincipalbusiness|Propertylease|Marketprice|Inapplicable|9.29|0.10%|20|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|ShenzhenCATICChangtaiInvestmentDevelopmentCo.,Ltd.|Commoncontroller|Revenuefromprincipalbusiness|Propertylease|Marketprice|Inapplicable|48.04|0.51%|60|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|Xi’anTianyueHotelCo.,Ltd.|Commoncontroller|Revenuefromprincipalbusiness|Propertylease|Marketprice|Inapplicable|470|4.95%|500|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|RainbowSupermarket|Commoncontroller|Revenuefromprincipalbusiness|Propertylease|Marketprice|Inapplicable|46.55|0.49%|60|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|ShenzhenCATICJiufangAssetsManagementCo.,Ltd.|Commoncontroller|Revenuefromprincipalbusiness|Propertylease|Marketprice|Inapplicable|36.36|0.38%|50|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
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|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|ShenzhenCATICCityInvestmentCo.,Ltd.|Commoncontroller|Revenuefromprincipalbusiness|Propertylease|Marketprice|Inapplicable|95.09|1.00%|120|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|ShenzhenCATICThemeRealEstateCo.,Ltd.|Commoncontroller|Revenuefromprincipalbusiness|Propertylease|Marketprice|Inapplicable|35.33|0.37%|50|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|GanzhouCATICRealEstateDevelopmentCo.,Ltd.|Commoncontroller|Salescosts|Propertylease|Marketprice|Inapplicable|102.99|1.51%|120|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|ChengduCATICRealEstateDevelopmentCo.,Ltd.|Commoncontroller|Salescosts|Propertylease|Marketprice|Inapplicable|0.12|0.01%|20|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|ShenzhenCATICChangtaiInvestmentDevelopmentCo.,Ltd.|Commoncontroller|Salescosts|Propertylease|Marketprice|Inapplicable|20.84|0.31%|40|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|JiujiangCATICCityRealEstateDevelopmentCo.,Ltd.|Commoncontroller|Salescosts|Propertylease|Marketprice|Inapplicable|32.19|0.47%|50|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|JiujiangCATICCityRealEstate|Commoncontroller|Salescosts|Propertylease|Marketprice|Inapplicable|3.33|0.05%|20|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
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|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|DevelopmentCo.,Ltd.||||||||||||||
|RainbowSupermarket|Commoncontroller|Salescosts|Marketexpenses|Marketprice|Inapplicable|445.76|7.76%|500|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|CATICProperty|Commoncontroller|Administrativeexpenses|Propertymanagementfee|Marketprice|Inapplicable|323.62|100.00%|300|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|ShenzhenCATICTrainingCenter|Commoncontroller|Administrativeexpenses|Trainingfees|Marketprice|Inapplicable|10.73|2.73%|0|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|ShanghaiWatchIndustryCo.,Ltd.|Jointstockcompany|Costs|Procurementofmaterials|Marketprice|Inapplicable|13.21|0.01%|300|No|Bankaccounttransference|Inapplicable|March10,2016|www.cninfo.com.cn|
|Total||||--|--|12,067.04|--|22,310|--|--|--|--|--|
|Detailsoftherejectionofthegoodsalreadysoldinbigamount||||Inapplicable||||||||||
|Incasethetotalamountoftheregularrelatedtransactionincurredinthereportingperiodhasbeenpredictedbasedoncategories,statetheactualimplementationoftheinthereportingperiod(ifany)||||The17thmeetingoftheSeventhBoardofDirectorsand2014AnnualGeneralMeetingreviewedandapproved the Proposal on Implementation of the Regular Related Transactions in 2014 andPredictionof the RegularRelatedTransactions in2015.Itispredictedthat the total amountoftherelatedtransactionsbetweentheCompanyandtheRelatedPartieswouldnotexceedCNY440.20million inYear 2015 while the amount of the related transactions actually incurred in the reportingyearwasCNY120.6703million,whichhasnotexceededthepredictedamount.Wheretheadvancespaid to CATIC Property by the Company for the property management fee did not exceed CNY3millionwhiletheamountoftherelatedtransactionsactuallyincurredwasCNY3.2361million.||||||||||
|Causeofthebigdifferencebetweenthetransactionpriceandthemarketreferenceprice.(ifapplicable)||||Inapplicable||||||||||

2. Relatedtransactions concerningacquisition and sales of assetsor equity
Inapplicable
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText 3. Relatedtransactions concerningjoint investment inforeign countries
Inapplicable
4. Current AssociatedRightsof Credit andLiabilities
Duefromrelatedparties
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Relatedparties|Relationship|Causesofformation|Doesthereexistnon-operationcapitaloccupancy?|Openingbalance(inCNY10,000)|Newlyincreasedamountinthereportingperiod(inCNY10,000)|Amountrecoveredinthereportingperiod(inCNY10,000)|Interestrate|Interestinthereportingperiod(inCNY10,000)|Endingbalance(inCNY10,000)|
|RainbowSupermarket|Commoncontroller|Loan|No|213.44|9,511.83|8,923.99|||801.28|
|ShennanHoldings.,Ltd.|Commoncontroller|Loan|No|764.01|1,365.26|1,412.08|||717.19|
|GanzhouCATICJiufangCommerceCo.,Ltd.|Commoncontroller|Loan|No|0|28.96||||28.96|
|ChinaNationalAviationIndustryGroupCo.|Eventualcontroller|Loan|No|52.43|56.84|107.92|||1.35|
|ChengduCATICRealEstateDevelopmentCo.,Ltd.|Commoncontroller|Loan|No|0.79|0|0.79|||0|
|RainbowSupermarket|Commoncontroller|Shoppingmalldeposi|No|30.8|23.67|0|||56.31|
|CATICProperty|Commoncontroller|Rent|No|0|22.59|0|||22.59|
|GanzhouCATICJiufangCommerce|Commoncontroller|Rentaldeposit|No|0|12.27|0|||12.27|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
|||||||||
|-|-|-|-|-|-|-|-|
|Co.,Ltd.||||||||
|ChengduCATICRealEstateDevelopmentCo.,Ltd.|Commoncontroller|Rentaldeposit|No|11.56|0|0|11.56|
|ShenzhenCATICChangtaiInvestmentDevelopmentCo.,Ltd.|Commoncontroller|Rentaldeposit|No|5|0|0|5|
|JiujiangCATICCityRealEstateDevelopmentCo.,Ltd.|Commoncontroller|Rentaldeposit|No|0|5|0|5|
|CATICCityProperty(Kunshan)Co.,Ltd.|Commoncontroller|Rentaldeposit|No|0|3.71|0|3.71|
|InfluenceoftherelatedrightsofcreditandliabilitiesupontheCompany’soperationresultsandfinancialposition.||Inapplicable||||||

Duetorelatedparties
||||||||||
|-|-|-|-|-|-|-|-|-|
|RelatedParties|Relationship|Causesofformation|Openingbalance(inCNY10,000)|Amountnewlyincreasedinthereportingperiod(inCNY10,000)|Amountrepaidinthereportingperiod(inCNY10,000)|Interestrate|Interestinthereportingperiod(inCNY10,000)|Endingbalance(inCNY10,000)|
|CATICRealEstate|Commoncontroller|Rentreceivedinadvance|0|13.38|0|||13.38|
|CATICProperty|Commoncontroller|Rentaldeposit|0|47.2|0|||47.2|
|CATICRealEstate|Commoncontroller|Rentaldeposit|42.48||0|||42.48|
|ShenzhenCATICCity|Commoncontroller|Rentaldeposit|3.77|20.64|0|||24.41|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
||||||||
|-|-|-|-|-|-|-|
|InvestmentCo.,Ltd.|||||||
|CATICSecurities,Co.,Ltd.|Commoncontroller|Rentaldeposit|18.74||0|18.74|
|ShenzhenCATICCityPropertyDevelopmentCo.,Ltd.|Commoncontroller|Rentaldeposit|0|9.79|0|9.79|
|ShenzhenCATICHuachengPropertyDevelopmentCo.,Ltd.|Commoncontroller|Rentaldeposit|0|7.38|0|7.38|
|ShenzhenCATICJiufangAssetsManagementCo.,Ltd.|Commoncontroller|Rentaldeposit|6.06|0|0|6.06|
|RainbowSupermarket|Commoncontroller|Rentaldeposit|6|0|0|6|
|ChengduCATICRealEstateDevelopmentCo.,Ltd.|Commoncontroller|Rentaldeposit|11.46|0|9.81|1.65|
|ShenzhenCATICBuildingTechnologyCo.,Ltd.|Commoncontroller|Rentaldeposit|0|0.96|0|0.96|
|ShenzhenCATICCityDevelopmentCo.,Ltd.|Commoncontroller|Rentaldeposit|0|0.4|0|0.4|
|AVICInternationalHoldingsLimited|Controllingshareholder|Loan|15,000|0|15,000|0|
|ShenzhenCATICChangtai|Commoncontroller|Rentaldeposit|22.17|0|22.17|0|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
|||
|-|-|
|InvestmentDevelopmentCo.,Ltd.||
|InfluenceoftherelatedrightsofcreditandliabilitiesupontheCompany’soperationresultsandfinancialposition.|Inapplicable|

5. Other Major RelatedTransactions
The 5th meeting of the Eighth Board of Directors held on January 19, 2016 reviewed and approved the Proposal on ReneweingFinancialServiceAgreementwithAVICFinanceCo.,Ltd.Forthedetail,pleaserefertotheAnnouncementon the Resolutions of the 5th meeting of the Eighth Board of Directors 2016-005 and the Announcement on the Related Transactions Involved in the Financial ServiceAgreement Renewed withAVIC Finance Co., Ltd. 2016-006 which were disclosed on Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn, The proposal shall not be implementeduntilbeingreviewedandapprovedattheGeneralMeeting.
For the project of non-public issuing of A-shares, the Company appointed CATIC Securities as the underwriter of the projectofnon-publicissuingandtheunderwritingfeeamountingtoCNY7.25milliontoCATICSecurities.Thismatterwas reviewed and approved at the 3rd meeting of the Eighth Board of Directors held on November 25, 2015. For the detail, refer to the Announcement on the Resolution of the 3rd meeting of the Eighth Board of Directors 2015-044 and the Announcement on Conclusion of the Agreement for Underwriting of the A-shares Issued in a Non-public Way with Huachuang Securities Co., Ltd. and CATIC Securities, Co., Ltd. and the Related Transaction 2015-045 published on SecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cn.
Inquiryconcerningtheprovisionalreportsonmajorrelatedtransactionswiththedisclosingwebsite.
||||
|-|-|-|
|Descriptionofprovisionalannouncements|Disclosuredateofprovisionalannouncements|Nameofthewebsitedisclosingtheprovisionalannouncements|
|AnnouncementontheResolutionsofthe5thmeetingoftheEighthBoardofDirectors2016-005|January20,2016|www.cninfo.com.cn|
|AnnouncementontheRelatedTransactionsInvolvedintheFinancialServiceAgreementRenewedwithAVICFinanceCo.,Ltd.2016-006|January20,2016|www.cninfo.com.cn|
|AnnouncementontheResolutionsofthe3rdmeetingoftheEighthBoardofDirectors2015-044|November27,2015|www.cninfo.com.cn|
|AnnouncementonConclusionoftheAgreementforUnderwritingoftheA-sharesIssuedinaNon-publicWaywithHuachuangSecuritiesCo.,Ltd.and|November27,2015|www.cninfo.com.cn|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
||
|-|
|CATICSecurities,Co.,Ltd.andtheRelatedTransaction2015-045|

There was no other major related transaction in the reporting period.
XII. Important Contracts and Implementation
1. Custody, Contacting andLeases
(1) Custody
Inapplicable
(2) Contracting
Inapplicable
(3) Leases
Inapplicable
2. Significant Guarantees
(1) Guarantees
In CNY 10,000
||||||||||
|-|-|-|-|-|-|-|-|-|
|OutwardguaranteesOfferredbytheCompanyanditsSubsidiaries (excludingguaranteetothesubsidiaries)|||||||||
|NamesofGurantees|Dateoftheannouncementontheguaranteeline|Guaranteeline|Dateofoccurrence(dateofagreementexecution)|Actualamountofguarantee|Typeofguarantee|Guaranteeperiod|Implementationstatus|Guaranteetorelatedparty?|
|Inapplicable|||||||||
|Totalamountofoutwardguaranteeapprovedinthereportperiod(A1)||0||Totalamountofoutwardguaranteeactuallyincurredinthereportperiod(A2)||0|||
|Totalamountofoutwardguaranteealreadyapprovedattheendofthereportperiod(A3)||0||Totalendingbalanceofoutwardguaranteeattheendofthereportperiod(A4)||0|||
|GuaranteesbetweentheCompanyanditsSubsidiaries|||||||||
|NamesofGuarantees|Dateoftheannouncem|Guaranteeline|Dateofoccurrence(date|Actualamountofguarantee|Typeofguarantee|Guaranteeperiod|Implementation|Guaranteetorelated|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
||||||||||
|-|-|-|-|-|-|-|-|-|
||entontheguaranteeline||ofagreementexecution)||||status|party?|
|ShenzhenHarmonyWorldWatchesCenterCo.,Ltd.|April28,2014|30,000|January13,2015|200|Guaranteewithjointresponsibility|3years|No|No|
|ShenzhenHarmonyWorldWatchesCenterCo.,Ltd.|March12,2015|30,000|November20,2015|5,000|Guaranteewithjointresponsibility|3years|No|No|
|ShenzhenHarmonyWorldWatchesCenterCo.,Ltd.|March12,2015|30,000|December2,2015|6,000|Guaranteewithjointresponsibility|3years|No|No|
|ShenzhenHarmonyWorldWatchesCenterCo.,Ltd.|March12,2015|10,000|December2,2015|10,000|Guaranteewithjointresponsibility|3years|No|No|
|ShenzhenFIYTASophisticatedTimepiecesManufactureCo.,Ltd.|March12,2015|1,000|August7,2015|1,000|Guaranteewithjointresponsibility|3years|No|No|
|FIYTA(HongKong)Limited|March12,2015|6,702.4|March12,2015|418.9|Guaranteewithjointresponsibility|4years|No|No|
|FIYTA(HongKong)Limited|March12,2015|6,702.4|April2,2015|502.68|Guaranteewithjointresponsibility|3years|No|No|
|FIYTA(HongKong)Limited|March12,2015|6,702.4|July9,2015|586.46|Guaranteewithjointresponsibility|3years|No|No|
|FIYTA(HongKong)Limited|March12,2015|6,702.4|August4,2015|837.8|Guaranteewithjointresponsibility|3years|No|No|
|FIYTA(HongKong)Limited|March12,2015|6,702.4|September14,2015|1,340.48|Guaranteewithjointresponsibility|3years|No|No|
|FIYTA(HongKong)Limited|March12,2015|6,702.4|September15,2015|1,005.36|Guaranteewithjointresponsibility|3years|No|No|
|FIYTA(HongKong)Limited|March12,2015|6,702.4|September16,2015|1,926.94|Guaranteewithjointresponsibility|3years|No|No|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
||||||||||
|-|-|-|-|-|-|-|-|-|
|FIYTA(HongKong)Limited|March1,2013|12,567|July11,2013|4,189|Guaranteewithjointresponsibility|5years|No|No|
|FIYTA(HongKong)Limited|March1,2013|12,567|August5,2013|4,189|Guaranteewithjointresponsibility|5years|No|No|
|FIYTA(HongKong)Limited|March1,2013|12,567|January6,2014|1,675.6|Guaranteewithjointresponsibility|5years|No|No|
|FIYTA(HongKong)Limited|March1,2013|12,567|January27,2014|837.8|Guaranteewithjointresponsibility|5years|No|No|
|FIYTA(HongKong)Limited|April28,2014|12,567|March3,2014|1,675.6|Guaranteewithjointresponsibility|5years|No|No|
|FIYTAHoldingsLtd.|March12,2015|40,000|October23,2015|5,000|Guaranteewithjointresponsibility|3years|No|No|
|Totalguaranteequotatothesubsidiariesapprovedinthereportingperiod(B1)||157,916.8||Totalamountofguaranteetothesubsidiariesactuallyincurredinthereportingperiod(B2)||33,618.62|||
|Totalguaranteequotatothesubsidiariesapprovedattheendofthereportingperiod(B3)||250,751.8||Totalbalanceofactualguaranteetothesubsidiariesattheendofthereportingperiod(B4)||46,385.62|||
|Subsidiary-SubsidiaryGuarantees|||||||||
|NamesofGuarantees|Dateoftheannouncementontheguaranteeline|Guaranteeline|Dateofoccurrence(dateofagreementexecution)|Actualamountofguarantee|Typeofguarantee|Guaranteeperiod|Implementationstatus|Guaranteetorelatedparty?|
|Inapplicable|||||||||
|Totalguaranteequotatothesubsidiariesapprovedinthereportingperiod(C1)||0||Totalamountofguaranteetothesubsidiariesactuallyincurredinthereportingperiod(C2)||0|||
|Totalguaranteequotatothesubsidiariesapprovedattheendofthereportingperiod(C3)||0||Totalbalanceofactualguaranteetothesubsidiariesattheendofthereporting||0|||

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
|||||
|-|-|-|-|
|||period(C4)||
|TheCompany’stotalguarantee(i.e.totalofthefirstthreemainitems)||||
|Totalguaranteequotaapprovedinthereportingperiod(A1+B1+C1)|157,916.8|Totalamountof guaranteeactuallyincurredinthereportingperiod(A2+B2+C2)|33,618.62|
|Totalguaranteequotaalreadyapprovedattheendofthereportingperiod(A3+B3+C3)|250,751.8|Totalbalanceoftheactualguaranteeattheendofthereportingperiod(A4+B4+C4)|46,385.62|
|ProportionoftheactualguaranteesintheCompany’snetassets(namelyA4+B4+C4)||20.17%||
|Including:||||
|Amountofguaranteesofferedtotheshareholders,actualcontrolleranditsrelatedparties(D)||0||
|Amountofguaranteeforliabilitiesdirectlyorindirectlyofferedtotheguaranteeswiththeasset-liabilityratioexceeding70%(E)||0||
|Guaranteewithtotalamountexceeding50%ofthenetassets(F)||0||
|Totalamountoftheaforesaidthreeguarantees(D+E+F)||0||
|Fortheguaranteenotyetdue,guaranteeresponsibilityincurredinthereportingperiodordescriptionofthepossiblerelateddischargeduty(ifany)||Inapplicable||
|Notetotheoutwardguaranteeagainsttheestablishedprocedures(ifany)||Inapplicable||

Descriptionoftheguaranteewithcomplexmethod
Inapplicable
(2) Outwardguaranteeagainstlaw
Inapplicable
3. Entrustingother PersontoManagethe CashAssets
(1) FinanceManagement on Commission
Inapplicable
(2) EntrustedLoan
Inapplicable
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText 4. Other Major Contracts
Inapplicable
XVIII. Notes to Other Signficiant Events
1.AboutNon-publicIssuingofA-shares
The 18th meetingof the SeventhBoard of Directorsheldon April16, 2015reviewed andapproved the Proposalon the Plan for Non-public Issuing of A-shares to the Specified Investors and other relevant proposal(s). For thedetail, refer to theAnnouncementontheResolutionsofthe18thMeetingoftheSeventhBoardofDirectors.2015-008;
On June2,2015,theCompanyreceivedtheOfficialReplytosomeIssuesconcerningNon-publicIssuingofA-sharesbyFIYTAHoldingsLtd.(GUOZICHANQUAN[2015]No.415fromtheState-ownedAssetsSupervisionandAdministration Commission of the State Council. For the detail, refer to the Announcement on the Official Reply of the State-owned Assets Supervision and Administration Commission of the State Council to some Issues concerning Non-public Issuing 2015-08disclosedonSecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cn.
2014 Annual General Meeting held on June 17, 2015 reviewed and approved the Proposal on the Plan for Non-public IssuingofA-sharestotheSpecifiedInvestorsandotherrelevantproposals,forthedetail,refertotheAnnouncementon the Resolution of 2014 Annual General Meeting2015-020 disclosed on Securities Times, Hong Kong Commercial Daily andwww.cninfo.com.cn.
On July 1, 2015, the Company received the Notice of China Securities Regulatory Commission on Accepting the Application for Administrative Licensing issued by China Securities Regulatory Commission (CSRC) (No. 152013). For the detail, refer to the Announcement on Accepting Application for Non-public Issuing of A-shares by China Securities RegulatoryCommission2015-021disclosedonSecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cn; On September 8, 2015, the Company received the Notice on the Feedback Opinions of China Securities Regulatory Commission on Examination of the Administrative Licensing Project (No. 152013). For the detail, refer to the AnnouncementontheReceivingoftheNoticeontheFeedbackOpinionsofChinaSecuritiesRegulatoryCommissionon Examination of the Administrative Licensing Project 2015-034 disclosed on Securities Times, Hong Kong Commercial Dailyandwww.cninfo.com.cn;
The Company and the relevant intermediary carefully studied and implemented the Feedback Opinions, supplemented thematerialsandsubmittedreplytothequestionsaccordingtotherequirementsoftheFeedbackOpinions.Forthedetail, refertotheAnnouncementontheReplytotheFeedbackOpinoinsontheApplicationforNon-publicIssuingofA-shares 2015-035,disclosedonSecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cn;
The17thmeetingoftheSeventhBoardofDirectorsand2014AnnualGeneralMeetingreviewedandapprovedtheProfit Distribution Plan for Year 2014. According to the relevant provisions of the Rules for Implementation on Non-public Issuing of ListedCompanies, etc., ifthe Companyhad ex-rights/ex-dividend eventssuch asdividenddistribution, bonus sharesdistribution,conversionofcapitalreserveintosharecapital,etc.,duringtheperiodfromthepricingbenchmarkto the issuingday, theissuing pricewouldbe adjustedcorrespondingly. Withinthe authorizationbythe Boardof Directors, the Company made adjustment of the plan of the non-public issuing of A-shares. For the detail, refer to the
AnnouncementonAdjustmentoftheIssuingPriceandIssuingVolumeoftheA-sharestobeIssuedinaNon-publicWay
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText 2015-036,disclosedonSecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cn.
In compliance with the Feedback Opinions, the Company disclosed the Announcement on the Indication of Risk of Diluting the Immediate Returns from the Non-public Issuing and the Measures the Company Intends to Take 2015-037 andtheAnnouncementonthePenaltyGivenorSupervisionMeasuresTakenbytheSecuritiesRegulatoryAuthorityand theStockExchangeinthePastFiveYears2015-038;
On October 30, 2015, the application for non-public issuing of A-shares was approved by CSRC Securities Issuance ExaminationCommittee.Forthedetail,refertotheAnnouncementonAppovaloftheApplicationforNon-publicIssuingof A-sharesbyCSRCSecuritiesIssuanceExaminationCommittee,2015-042;
On November 17, 2015, the Company received the Official Reply to FIYTA Holdings Ltd. for Approval of Non-publicIssuingofSharesof(ZHENGJIANXUKE[2015]No.2588).Forthedetail,refertotheAnnouncementonApprovalofthe ApplicationforNon-publicIssuingofA-sharesbyChinaSecuritiesRegulatoryCommission2015-043;
OnJanuary15,2016,theCompany’sA-sharesissuedinanon-publicwaygotlistedwithShenzhenStockExchangeand theCompanypublishedtheannouncementforlistingandtheannouncementontherelatedcommitments.Forthedetail, refer to the Report on the Non-public Issuing and Announcement on Listing 2016-003 and the Announcement on the CommitmentsfortheSharesIssuedinaNon-publicWay2016-004.
2.SubscriptionoftheFrameworkAgreementonOutwardInvestment
The 19th meeting of the Seventh Board of Directors held on June 4, 2015 reviewed and approved the Proposal on SubscriptionoftheFrameworkAgreementonOutwardInvestmentaccordingtowhichthemanagementwasauthorizedto concludeaframeworkagreementwithBeijignWatchPlantCo.,Ltd.forestablishingBeibiaoWatchIndustry(Beijing)Co., Ltd.byjointventure.Forthedetail,refertotheAnnouncementonSubscriptionoftheFrameworkAgreementonOutward Investment2015-016.
3.AmendmentofArticlesofAssociation
The 18th meeting of the Seventh Board of Directors held on April 16, 2015 and 2014 Annual General Meeting held on June17,2015reviewed andapprovedtheProposalonAmendmentoftheArticlesofAssociation.Forthedetail,referto theAnnouncementontheResolutionsofthe18thmeetingoftheSeventhBoardofDirectorsandtheAnnouncementon theResolutionsof2014AnnualGeneralMeeting2015-020,disclosedonSecuritiesTimes,HongKongCommercialDaily andwww.cninfo.com.cn
The 5th meeting of the Eighth Board of Directors held on January 19, 2016 reviewed and approved the Proposal on Amendment of the Articlesof Association. The proposalshall not be implemented until being reviewed and approved at thegeneralmeeting.Forthedetail,refertotheAnnouncementontheResolutionsofthe5thmeetingoftheEighthBoard ofDirectors2016-005disclosedonSecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cn.
4.RedemptionofCompanyBonds
The 4th meeting of the Eighth Board of Directors held on January 8, 2016 reviewed and approved the Proposal on the Issuer to Exercise the Redemption Option for “12 YA DA ZHAI” Company Bond, for which the Company published indicativeannouncementsrepsectivelyonJanuary13,2016,January22,2016,February2,2016andFebruary23,2016. For the detail, refer to the Announcement on Giving up the Option of Adjusting High the Nominal Interest Rate and the
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullTextInvestors’ Redemption Option& Exercising theIssuer’s Redemption Option for “12 YA DA ZHAI” Company Bond2016-0016,theFirstIndicativeAnnouncementonRedemption&Delistingof“12YADAZHAI”CompanyBond2016-002,theSecondIndicativeAnnouncementonRedemption&Delistingof“12YADAZHAI”CompanyBond2016-010,theThird Indicative Announcement on Redemption& Delisting of “12 YA DA ZHAI” Company Bond 2016-011 and the Fourth Indicative Announcement on Redemption& Delisting of “12 YA DA ZHAI” Company Bond 2016-012, which were all disclosedonSecuritiesTimes,HongKongCommercialDailyandwww.cninfo.com.cn.Implementationoftheredemption ofthecompanybondswascompletedonFebruary29,2016.
XIX. Significant Events of theCompany’s Subsidiaries
Inapplicable
XX. Social Responsibility
TheSocialResponsibilityReportwaspublishedonwww.cninfo.com.cnonMarch10,2016.
DotheCompanyanditssubsidiariesbelongtotheindustryofseriouspollutionasspecifiedbytheenvironmental protectionauthorityofthestate?
No
|||||||
|-|-|-|-|-|-|
|Enterprise’sSocialResponsibilityReport||||||
|Enerpriseproperty|Doesitcontaininformationconcerningenvironment|Doesitcontaininformationconcerningthesociety|Doesitcontaininformationconcerningcorporategovernance|Reportdisclosurestandards||
|||||Domesticstandards|Internationalstandards|
|State-ownedenterprise|Inapplicable|Yes|yes|yes|Others|

Notestospecificcircumstances
|||
|-|-|
|1.HastheCompanybeencertifiedfortheEnvironmentManagementSystemCertification(ISO14001)|Yes|
|2.Amountofinvestmentintheenvironmentalprotectioninthereportingyear,inCNY10,000|0|
|3.Performancesoftheemissionreductionof“wastegas,wastewaterandwasteresidue|Inapplicable|
|4.Investmentforimprovingemployees’personalknowledgeandtechniquessoastoupgradeemployees’careerdevelopmentability,inCNY10,000|359.19|
|5.Socialcharitabledonations(fund,goodsandmaterialsandfreeprofessionalservices),inCNY10,000|30|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText XXI. Company Bond Related Information
Isthereanycompanybondwhichwasissuedinpublicandgotlistedwiththestockexchangebuthasnotbeenhonored fromthedateofapprovaloftheannualreporttotheexpiryofthebond.
No.
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText Chapter 6 Change of Shares and Particulars about
Shareholders
I. Change of Shares
1. Change of Shares
In shares
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Beforethechange||Increase/Decrease(+/-)|||||Afterthechange||
||Quantity|Proportion(%)|Newissuing|Bonusshares|Sharesconvertedfromreserve|Others|Sub-total|Quantity|Proportion(%)|
|I.Restrictedshares|49,733|0.01%|0|0|0|0|0|49,733|0.01%|
|1.Sharesheldbythestate|0|0.00%|0|0|0|0|0|0|0.00%|
|2.Statecorporateshares|0|0.00%|0|0|0|0|0|0|0.00%|
|3.Otherdomesticshares|49,733|0.01%|0|0|0|0|0|49,733|0.01%|
|Including:Domesticcorporateshares|0|0.00%|0|0|0|0|0|0|0.00%|
|Sharesheldbydomesticnaturalpersons|49,733|0.01%|0|0|0|0|0|49,733|0.01%|
|4、Foreigninvestedshares|0|0.00%|0|0|0|0|0|0|0.00%|
|Including:Foreigncorporateshares|0|0.00%|0|0|0|0|0|0|0.00%|
|Sharesheldbyforeignnaturalpersons|0|0.00%|0|0|0|0|0|0|0.00%|
|II.Unrestrictedshares|392,718,137|99.99%|0|0|0|0|0|392,718,137|99.99%|
|1.CNYordinaryshares|311,070,137|79.20%|0|0|0|0|0|311,070,137|79.20%|
|2.ForeigninvestedshareslistedinMainlandChina|81,648,000|20.79%|0|0|0|0|0|81,648,000|20.79%|
|3、Foreigninvestedshareslistedabroad|0|0.00%|0|0|0|0|0|0|0.00%|
|4.Others|0|0.00%|0|0|0|0|0|0|0.00%|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|III.Totalshares|392,767,870|100.00%|0|0|0|0|0|392,767,870|100.00%|

CausesofChangeofShares
Theforegoingchangeofthesharesisthesituationattheendofthereportingperiod.In2015,theCompanyissued 45,977,011sharesinanon-publicwaywhichgotlistedwithShenzhenStockExchangeonJanuary15,2016.Thenew shareswerenotallowedtobelistedfortradingorassignedwithin12monthsfromthefirstdayoflisting.Endedthedayof disclosingtheReport,theCompanyhadtotally438,744,881shares,including46,026,744restrictedsharesand
392,718,137negotiableshares.
ApprovalofChangeoftheShares
TheCompanyheldthe18thmeetingoftheSeventhBoardofDirectorsand2014AnnualGeneralMeetingrespectivelyon April16,2015andJune17,2015.Themeetingsreviewedandapprovedtheproposalonnon-publicissuingofA-sharesto thedesignatedinvestors.
Theapplicationfornon-publicissuingofA-shareswasapprovedbyCSRCSecuritiesIssuanceExaminationCommittee onOctober30,2015;onNovember17,2015,theCompanyreceivedOfficialReplytoFIYTAHoldingsLtd.onApprovalforNon-publicIssuing(ZHENGJIANXUKE[2015]No.2588onNovember17,2015,accordingtowhichtheCompanywas approvedtoissuenewshareswithsizenotexceeding46,911,649shares.
TransferinChangeofShares
Inapplicable
InfluenceofthechangeofthesharesuponsuchfinancialindicatorsasthebasicEPSanddilutedEPS,netassetvalue pershareattributabletothecommonstockholdersinthepastyearandthelatestperiod
Inthereportingperiod,theCompanycompletedthenon-publicissuingofA-sharesinthereportingperiod.Attheendof thereportingperiod,theEPSandROEwerecalculatedbasedontheweightedaverage.
|||||||
|-|-|-|-|-|-|
|Weightedaverage||EPS||||
|ROE(%)||BasicEPS(CNY/share)||DilutedEPS(CNY/share)||
|2015|2014|2015|2014|2015|2014|
|7.24%|8.62%|0.3099|0.3707|0.3099|0.3707|

 OtherinformationtheCompanyconsidersitnecessaryorrequiredbythesecuritiesregulatoryauthoritytobedisclosed. Inapplicable
2. Change of RestrictedShares
In shares
||||||||
|-|-|-|-|-|-|-|
|Shareholders|Numberofrestrictedsharesatthebeginningofthereportingperiod|Numberofsharesreleasedfromtradingrestrictions|Numberofrestrictedsharesincreasedinthereportingperiod|Numberofrestrictedsharesattheendofthereportingperiod|Causesofrestriction|Dateofreleasingoftradingrestriction|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
||||||||
|-|-|-|-|-|-|-|
|GoldenEagleAssetManagementCo.,Ltd|0|0|4,674,329|4,674,329|Raisedcapitalfromnon-publicissuingofA-shares|January15,2017|
|CaitongFundManagementCo.,Ltd.|0|0|12,590,027|12,590,027|Raisedcapitalfromnon-publicissuingofA-shares|January15,2017|
|SwsMuFundManagementCo.,Ltd|0|0|8,429,118|8,429,118|Raisedcapitalfromnon-publicissuingofA-shares|January15,2017|
|XizangInvestmentCo.,Ltd.|0|0|4,976,551|4,976,551|Raisedcapitalfromnon-publicissuingofA-shares|January15,2017|
|MANULIFETEDAFundManagementCo,Ltd.|0|0|15,306,986|15,306,986|Raisedcapitalfromnon-publicissuingofA-shares|January15,2017|
|Total|0|0|45,977,011|45,977,011|--|--|

 II. Issuing and Listing
1. Issuingof securities (withpreferred stock exclusive) inthe reportingperiod
||||||||
|-|-|-|-|-|-|-|
|Descriptionofstockandthederivatives|Issuingdate|Issuingprice(orinterestrate)|Issuingquantity|Listingdate|Numberofsharesapprovedtobelistedfortrading|Tradingterminationdate|
|Typesofstock|||||||
|A-sharesissuedinanon-publicway|December22,2015|13.05|45,977,011|January15,2016|45,977,011||
|Convertiblecompanybonds,convertiblecompanybondsforseparatedtrading,debentures|||||||
|Otherderivatives|||||||

Notetotheissuingofsecurities(withpreferredsharesexclusive)inthereportingperiod
TheCompanyheldthe18thmeetingoftheSeventhBoardofDirectgorsand2014AnnualGeneralMeetingrespectivelyon
April16,2015andJune17,2015.ThemeetingsreviewedandapprovedtheProposalonthePlanforNon-publicIssuing
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText of A-shares to the Specified Investors, etc., according to which the Company planned to issue in a non-public way A-shares to no more than 10 (with 10 inclusive) specified investors with the total raised capital not exceeding CNY 600 million, which would be applied for four projects, including the project of launching newFIYTAwatches and supplement the working capital. The application for non-public issuing ofA-shares was reviewed and approved by CSRC Securities IssuanceExaminationCommittee(CSIEC)onOctober30,2015.OnNovember17,2015,theCompanyreceivedOfficialReplytoFIYTAHoldingsLtd.onApprovalforNon-publicIssuing(ZHENGJIANXUKE[2015]No.2588whichauthorized the Company to issue no more than 46,911,649 new shares in non-public way.The actual number ofA-shares actually issuedinthenon-publicissuingactivitywas45,977,011sharesandtheraisedcapitalamountedtoCNY599million.After deduction of the issuing costs, the net raised capital amounting to CNY583 million was remitted to the bank account designated by the Company on December 18, 2015. Grant Thornton Certified Public Accountants (Special General Partnership)issuedtheCapitalVerificationReportsZHITONGYANZI(2015)No.441ZC0653,ZHITONGYANZI(2015) No.441ZC0652respectivelyfortheraisedcapital.TheA-sharesissuedinanon-publicwaywereregisteredforlistingon January15,2016andlockedfor 12months.The Companyhas publishedtheAnnouncement ofCommitmentconcering theSharesIssuedinaNon-publicWay.
2. Changes of theCompany’s Total Shares and the Structure of Shareholders as well as the Structureof Assets and Liabilities
Ended December 22, 2015, the Company completed the work of non-public issuing of 45,977,011 A-shares to the designatedinvestors.Uponcompletion oftheissuing,theCompanyincreasedtheregisteredcapitalbyCNY45,977,011 withthetotalregisteredcapitalturningtobeCNY438,744,881,andincreasedthecapitalreservebyCNY536,947,362.62. The proportion of the shares held by the controlling shareholder decreased from41.49% to37.15%. TheCompany’sasset-liabilityratiobeforethenon-publicissuingwas55.27%andthatafterthenon-publicissuingwas45.77%.Thenew sharesgotlistedwithShenzhenStockExchangeonJanuary15,2016.
3. Abouttheexistingemployees’shares
Inapplicable
III. Shareholders and Actual Controlling Shareholder
1. Number ofShareholders andShareholding
Inshares
|||||||||
|-|-|-|-|-|-|-|-|
|Totalcommonshareholdersinthereportingperiod|33,608|Totalcommonshareholdersattheendofthemonthbeforebeforethedateofdisclosingtheannualreport|34,695|Totalpreferenceshareholderswiththevotingpowerrecoveredattheendofthereportingperiod(ifany)(RefertoNote8)|0|Totalpreferenceshareholderswiththevotingpowernotrecoveredattheendofthemonthbeforethedayofdisclosingtheannualreport(ifany)(RefertoNote8)|0|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
||||||||||
|-|-|-|-|-|-|-|-|-|
|Sharesheldbytheshareholdersholdingover5%sharesorthetoptenshareholders|||||||||
|Shareholdernames|Sharesheldbythetoptenshareholders|Sharesheldbythetoptenshareholders(%)|Quantityattheendofthereportingperiod|Increase/decreaseinthereportingperiod|Numberoftherestrictedsharesheld|Numberofthenon-restrictedsharesheld|Pledgingorfreezing||
||||||||Statusoftheshares|Quantity|
|AVICInternationalHoldingsLimited|State-ownedcorporate|41.49%|162,977,327|0|0|162,977,327|||
|ChinaLifeInsuranceLimited–Dividend–DividendtoIndividuals--005L-FH002SHEN|Domesticnon-state-ownedcorporate|1.06%|4,157,800|4,157,800|0|4,157,800|||
|ESSENCEINTERNATIONALSECURITIES(HONGKONG)LIMITED|Foreigncorporate|0.66%|2,610,000|610,000|0|2,610,000|||
|DaiWen|Domesticnaturalperson|0.51%|2,009,321|0|0|2,009,321|||
|CMS(HK)|Foreigncorporate|0.39%|1,522,341|65,812|0|1,522,341|||
|ZhouWeixian|Domesticnaturalperson|0.36%|1,394,600|1,394,600|0|1,394,600|||
|LiYunming|Domesticnaturalperson|0.33%|1,314,100|1,314,100|0|1,314,100|||
|YangzhouMunicipalMiningBureau|State-ownedcorporate|0.30%|1,161,639|1,161,639|0|1,161,639|||
|ShanghaiKewenInvestmentManagementCo.,Ltd.–KEWENTKENo.3InvestmentFund|Domesticnon-state-ownedcorporate|0.29%|1,138,000|1,138,000|0|1,138,000|||
|ZengXialan|Domesticnaturalperson|0.28%|1,099,080|1,099,080|0|1,099,080|||
|Aboutthefactthatastrategicinvestororordinarycorporatebecameoneofthetoptenshareholdersduetoplacementofnewshares(ifany)(RefertoNote3)||Inapplicable|||||||
|Explanationonassociatedrelationshiporconsistentactionoftheaboveshareholders||TheCompanyhasfoundneitheraffiliationamongtheaforesaidshareholdersnorconcertedactorasspecifiedintheMeasuresforAdministrationofInformationontheShareholderEquityChangeofListedCompanies.|||||||
|Shareholdingoftop10shareholdersofunrestrictedshares|||||||||

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
|||||
|-|-|-|-|
|Shareholder’sName|Quantityofunrestrictedsharesheldattheendofthereportingperiod|Sharetype||
|||Sharetype|Quantity|
|AVICInternationalHoldingsLimited|162,977,327|A-shares|162,977,327|
|ChinaLifeInsuranceLimited–Dividend–DividendtoIndividuals--005L-FH002SHEN|4,157,800|A-shares|4,157,800|
|ESSENCEINTERNATIONALSECURITIES(HONGKONG)LIMITED|2,610,000|B-shares|2,610,000|
|DaiWen|2,009,321|A-shares|2,009,321|
|CMS(HK)|1,522,341|B-shares|1,522,341|
|ZhouWeixian|1,394,600|A-shares|1,394,600|
|LiYunming|1,314,100|A-shares|1,314,100|
|YangzhouMunicipalMiningBureau|1,161,639|A-shares|1,161,639|
|ShanghaiKewenInvestmentManagementCo.,Ltd.–KEWENTKENo.3InvestmentFund|1,138,000|A-shares|1,138,000|
|ZengXialan|1,099,080|A-shares|1,099,080|
|Explanationtotheassociatedrelationshiporconsistentactionamongthetop10shareholdersofnon-restrictednegotiablesharesandthatbetweenthetop10shareholdersofnon-restrictednegotiablesharesandtop10shareholders.|TheCompanyhasfoundneitheraffiliationamongtheaforesaidshareholdersnorconcertedactorasspecifiedintheMeasuresforAdministrationofInformationontheShareholderEquityChangeofListedCompanies.|||
|Notetothetop10shareholdersinvolvedinmarginfinancing&securitieslending(ifany)(RefertoNote4)|Inapplicable|||

Did the top ten common shareholders or top ten shareholders of unrestricted ordinary shares conduct contractual repurchaseduringthereportingperiod?
No
2. ControllingShareholder
Natureofthecontrollingshareholder:State-ownedholdingdirectlyunderthecentralgovernment
Typeofthecontrollingshareholder:corporate
||||||
|-|-|-|-|-|
|NameoftheControllingShareholder|LegalRepresentative/Leader|Dateofincorporation|Organizationcode|Principalbusinessactivities|
|AVICInternationalHoldingsLimited|WuGuangquan|June20,1997|27935122-9|Investingandinitiatingentities(separateapplicationistobesubmittedforaspecificproject);domesticcommerce,supplyandsalesofgoodsandmaterials(excludingthegoodsforexclusivesale,underspecialcontroland|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
||||
|-|-|-|
|||monopolizedgoods);importandexport(excludingthegoodsforbiddenbylaw,administrativerulesandregulations,decisionoftheStateCouncil;therestrictivegoodsisnotallowedforoperationuntilpermitisgranted)|
|Equityinotherdomesticandforeignlistedcompaniesheldbythecontrollingshareholderbymeansofcontrolandmutualshareholdinginthereportingperiod|||
||Holding22.35%equityinCATICRealEstateCo.,Ltd.(CATICRealEstate000043),73.87%equityinAVIC||
||InternationalMaritimeHoldingsLimited(listedinSingapore)and20.81%equityinTianmaMicro-electronics||
||Co.,Ltd.(SHENTIANMA A000050).||

Changeofthecontrollingshareholderinthereportingperiod
Inapplicable
3. ActualController
Natureoftheactualcontroller:State-ownedassetsregulatoryagencydirectlyunderthecentralgovernment
Typeoftheactualcontroller:corporate
||||||
|-|-|-|-|-|
|NameoftheActualController|LegalRepresentative/Leader|Dateofincorporation|Organizationcode|Principalbusinessactivities|
|CATICInternationalHoldingsLimited|WuGuangquan|April12,1983|10000099-9|Internationalaviation,tradingandlogistic,retailandhigh-endconsumptiongoods,realestateandhotel,electronicsandhi-tech,resourcedevelopment,etc.|
|Equityinotherdomesticandforeignlistedcompaniesheldbytheactualcontrolerbymeansofcontrolandmutualshareholdinginthereportingperiod|Holding37.50%equityinAVICInternationalHoldingsLimited(HK.0161)and 5.56%equityinTianmaMicro-electronicsCo.,Ltd.(SHENTIANMAA000050).||||

Changeoftheactualcontrollerinthereportingperiod
Inapplicable
BlockDiagramoftheOwnershipandControlRelationsbetweentheCompanyandtheActualController
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText TheactualcontrollercontrolstheCompanybymeansoftrustormanagingtheassetsinotherways:
Inapplicable
4.OtherCorporateShareholderHoldingover10%oftheCompany’sShares
Inapplicable
5. Shareholding Reduction Restriction on the Controlling Shareholder, the Actual Controller, the Reorganizing Partyandother CommitingParty
Inapplicable
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText Chapter 7 About the Preferred Shares
Inapplicable
Chapter 8 Directors, Supervisors, Senior Executives and Staff I. Change in Shares Held by Directors, Supervisors and Senior Executives
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Names|Positions|OfficeStatus|Gender|Age|Startingdateoftenure|Expirydateoftenure|Numberofsharesacquiredatendofthereportingperiod(shares)|Volumeofsharesacquiredduringthereportingperiod(shares)|Volumeofsharessoldduringthereportingperiod(shares)|Otherincrease/decrease(shares)|Numberofsharesheldatendofthereportingperiod(shares)|
|DiaoWeicheng|Chairman|Inoffice|Male|53|September28,2015|September28,2018|0|0|0|0|0|
|XuDongsheng|ManagingDirector|Inoffice|Male|50|September28,2015|September28,2018|0|0|0|0|0|
|WangMingchuan|Director|Inoffice|Male|50|August31,2015|August31,2018|0|0|0|0|0|
|LiuAiyi|Director|Inoffice|Male|44|August31,2015|August31,2018|0|0|0|0|0|
|ZhongSijun|Director|Inoffice|Male|40|August31,2015|August31,2018|0|0|0|0|0|
|CaoZhen|Director|Inoffice|Female|45|August31,2015|August31,2018|0|0|0|0|0|
|ZhangHongguang|IndependentDirector|Inoffice|Male|60|August31,2015|August31,2018|0|0|0|0|0|
|ZhangShunwen|IndependentDirector|Inoffice|Male|50|August31,2015|August31,2018|0|0|0|0|0|
|WangYan|IndependentDirector|Inoffice|Male|59|August31,2015|August31,2018|0|0|0|0|0|
|SuiYong|Chairman|Inoffice|Male|58|August31,|August31,|0|0|0|0|0|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||oftheSupervisoryCommittee||||2015|2018||||||
|ChenZhuo|Supervisor|Inoffice|Male|40|August31,2015|August31,2018|0|0|0|0|0|
|TangBoxue|Supervisor|Inoffice|Male|55|August31,2015|August31,2018|0|0|0|0|0|
|ChenLibin|DeputyGM|Inoffice|Male|52|September28,2015|September28,2018|0|0|0|0|0|
|LuBingqiang|DeputyGM|Inoffice|Male|55|September28,2015|September28,2018|66,311|0|0|0|66,311|
|DuXi|DeputyGM|Inoffice|Male|41|September28,2015|September28,2018|0|0|0|0|0|
|LuWanjun|DeputyGM,Director,secretary|Inoffice|Male|49|September28,2015|September28,2018|0|0|0|0|0|
|HuXinglong|Chiefaccountant|Inoffice|Male|52|September28,2015|September28,2018|0|0|0|0|0|
|HuangYongfeng|Director|Retired|Male|42|September10,2012|June5,2015|0|0|0|0|0|
|Total|--|--|--|--|--|--|66,311|0|0|0|66,311|

 II. Change of Directors, Supervisors and/or Senior Executives
||||||
|-|-|-|-|-|
|Names|OfficeTaken|Type|Date|Cause|
|HuangYongfeng|Director|Resignment|2015年06月05日|Mr.HuangappliedforresigningthepostofdirectoroftheCompanyandmemberoftheStrategyCommitteeandtheNomination,RemunerationandAssessmentCommittee.Aftertheresignment,Mr.HuangnolongerheldanypostintheCompany|
|CaoZhen|Director|Newappointment|August31,2015|Atthe20thmeetingoftheSeventhBoardofDirectorsand20151stExtraordinaryGeneralMeeting,Ms.CaowaselecteddirectoroftheEighthBoardofDirectors.|

III. Posts Holding
ProfessionalBackground,CVandMajorDutiesofDirectors,SupervisorsandSeniorExecutivesinOffice
Mr. Diao Weicheng, born in June, 1963, research fellow senior engineer, bachelor of physics of Sun Yat-sen University,
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText MBAandPhDofmanagementscienceandengineeringofTongjiUniversity.Mr.DiaoisamemberofthePartyLeadership GroupanddeputygeneralmanagerofCATICInternationalHoldingsLimited,thechairmanofRainbowSupermarketCo., Ltd. He used to be the general manager of China NationalAero-technology Import& Export Corp. Beijing Co., deputy general manager of China National Aero-technology Import& Export Corp., director, deputy general manager and a member of the Party Committee of Shenzhen Pengji Holdings Co., Ltd. and deputy general manager of Shun Yip HoldingsCompanyLimited.
Mr. Xu Dongsheng, born in April 1966 research fellow senior economist, MBA of Tongji University. and PhD of BeijingUniversityofAeronautics&Astronautics.HeisnowthemanagingdirectoroftheCompany,adeputyofthe6thSessionofPeople’sCongressofShenzhenMunicipality,vicepresidentofChinaTimepiecesAssociationandchairmanofShenzhen Timepieces Association. Mr. Xu used to the secretary of CYLCommittee of CATIC Shenzhen Company Limited, GM of the Collective Life Service Co., Ltd. of Shenzhen CATIC Enterprise Group, vice secretary of the discipline committee, managerandpresidentassistantofthesupervisionandauditdepartmentofCATICShenzhenCompanyLimited. Mr.WangMingchuan,borninDecember1966,senioraccountant,masterofmanagementengineeringofTongjiUniversity. Mr.WangisadirectoroftheCompany,vicechiefaccountantofCATICInternationalHoldingsLimited,chiefaccountantof CATICShenzhenCompanyLimited,directorofTianmaMicroelectronicsCo.,Ltd.,directorofCATICRealEstateCo.,Ltd. anddirector of RainbowSupermarketCo., Ltd. He used tobe a financial supervisor of thefinanical divisionof Chengdu EngineCompany,managerofthefinancialdepartmentofShenzhenShenrongEngineeringPlasticCompany,managerof the comprehensive management department and chief financial officer of Shenzhen CATIC Trading Co., Ltd., deputy managerofthefinancialandauditdepartment,deputymanager andmanagerof thefinancialdepartmentandvicechief accountantofCATICShenzhenCompanyLimited.
Mr.LiuAiyi,borninFebruary,1972,senioradministrator,masterofpublicrelationsmanagementofPekingUniversity.Mr. Liu is the director of the human resource department of AVIC International Holdings Limited and director of Tianma Micro-electronicsCo.,Ltd.anddirectorofCATICRealEstateCo.,Ltd.Heusedtobetheseniorbusinessmanagerofthe humanresourcedepartment,chiefofthedivisionofleadingcadresofthehumanresourcedepartmentofChinaAviationIndustryCorporationIandchiefofthedivisionofseniorexecutives&talentsofthehumanresourcedepartmentofChina NationalAviationIndustryGroupCo.
Mr.ZhongSijun,borninDecember1976,economist,masterofmanagementofNorthwesternPolytechnicalUniversity.Mr. Zhong is the secretary of AVIC International Holdings Limited, director of CATIC Real Estate Co., Ltd., director of Rainbow Supermarket Co., Ltd. and director of Tianma Micro-electronics Co., Ltd. Mr. Zhong used to a deputy supervisoroftheOperationManagementDepartmentofAVICInternationalHoldingsLimited,thesecretaryoftheboardof ShenzhenCATICHotelManagement Co.,Ltd.andthesecretaryoftheboardofShanghaiTianmaMicroelectronicsCo., Ltd.
Ms. Cao Zhen, bornin October 1971, borninOctober, 1971, medium-rankjournalist, Bachelir of Artisof Jiangxi Normal University, EMBA of China Europe International Business School. Ms. Cao is the manager of the enterprise culture departmentofCATICInternationalHoldingsLimited,asupervisorofCATICShenzhenCompanyLimited,asupervisorof CATICRealEstateCo.,Ltd.SheusedtobetheassistanttoGMofCATICShenzhenCompanyLimited,theeditor-in-chief ofAVICNewsofCATICShenzhenCompanyLimited,,themanageroftheAdministrationandManagementDepartmentof CATICShenzhenCompanyLimitedandthesecretaryoftheboardofCATICShenzhenCompanyLimited.
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText Mr. Zhang Hongguang, born in March 1956, senior engineer, bachelor of light industry machinery of Dalian Polytechnic University.HeisnowanindependentdirectoroftheCompany,vicepresidentofChinaTimepiecesAssociation.Heused to be GM of Shenzhen Qixin Construction Group, deputy GM of Shenzhen Zhongyin Industrial Co., Ltd., manager of ShenzhenXinghuaCo.,Ltd.anddeputychiefoftheeducationdepartmentoftheMinistryofLightIndustry.
Mr.ZhangShunwen,borninMay,1966,senioraccountant,aCPA,andmasterofZhongnanUniversityofEconomicsand Law. HeisnowanindependentdirectoroftheCompany,apartnerofLixinCertifiedPublicAccountants(specialgeneral partnership),anexpertmemberoftheThirdAssessmentCommitteeofGuangdongSeniorAccountants,vicepresidentof Shenzhen Service Trade Association, practicing tutor of College of Economics of Shenzhen University, independent director of Shenzhen Gongjin Electronics Co., Ltd., AVIC Sanxin Co., Ltd. and Shenzhen Special Economic Zone RealEstate&Properties (Group).Co.,Ltd. He used to be a vice president of Shenzhen Association of CPAs and a member of CPPCCofShenzhenMunicipality.
Mr. Wang Yan, born in February 1957 senior economist, master of business administration of State University of New York. He is now an independent director of the Company, professor of Intellectual Property Academy of South China University of Technology, deputy director of South China Training Base of the State Intellectual Property Bureau, independent director of Shenzhen Maxonic Automation Control Co., Ltd. He used to be assistant to the director of the Management Department of the State Intellectual Property Bureau, chief economist of the domestic listing company of ChinaMerchantsGroup(ChinaMerchantsHarborService),seniorexecutiveofFirstStateChinaFundManagementCo.,Ltd.,associateprofessorofSouthwestUniversityofPoliticalScience&LawanddeputydirectorofShenzhenIntellectual PropertyBureau.
Mr. Sui Yong, born in January 1958, senior accountant, bachelor of management engineering of Beijing University of Aeronautics& Astronautics. He is the Chairman of the Supervisory Committee of the Company, deputy GM of CATIC Shenzhen Company Limited. He used to be deputy manager and manager of the financial department, manager of the settlement center, manager of the financial department, vice chief accountant and chief accountant of China NationalAero-TechnologyImport&ExportCorporationShenzhenCompanyandchairmanofthesupervisorycommitteeofCATIC RealEstateCo.,Ltd.
Mr. Chen Zhuo, born in September 1976, accountant, MBA of Wuhan University, on-campus EMBA of China Europe International Business School. He is now a supervisor of the Company and manager of the strategy and information department.HeusedtobedeputymanagerofthestrategyandinformationdepartmentoftheCompany,deputyGMand manager of the financial information department of FIYTA Sales Co., Ltd. and securities affairs representative of the Company.
Mr. Tang Boxue, born in July 1961, accountant, graduated from university. He is now a supervisor and the manager of theauditdepartmentoftheCompany.Heusedtobedeputymanageroftheauditdeparmentandprojectmanagerofthe financialdepartmentoftheCompanyandGMofShenzhenPengmenRestaurantCo.,Ltd.
Mr. Chen Libin, born in June 1964, postgraduate of economics of the Party School of Guangdong Provincial CPC CommitteeandEMBAofSunYat-SenUniversity.HeisnowtheSecretaryoftheCPCCommitteeanddeputyGM ofthe Company.Mr.Chen used to be deputy director and director of theParty’s affairs of the Party-massesWorkDepartment andseniorcommissioner,deputymanagerandmanageroftheenterpriseculturedepartmentofAVICShenzhenandthe SecretaryoftheBoardoftheCompany.
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText Mr. Lu Bingqiang, born in December 1961, senior economist, bechalor of Guangzhou Jinan University. Mr. Lu is deputy GMoftheCompanyandManagingDirectorofFIYTA(HongKong)Limited.HeusedtobethepresidentsecretaryofAVIC Shenzhen, GM assistant amd director of the Company, and GM and chairman of Shenzhen Harmony World Watches Center.
Mr. Du Xi, born in July 1975, engineer, bachelor of mechatronic engineering of University of Electronic Science and Technology of China, and EMBA of Sino-European International Management Institute. He is now a deputy GM of the Company.Mr.DuusedtobetheassistanttotheGMoftheCompanyandtheGMofFIYTABrand,thedeputyGMandGM ofFIYTASalesCo.,Ltd.andmanagerofFIYTASouthChinaBranch.
Mr.LuWanjun,borninFebruary,1967,accountantandEMBAofSino-EuropeanInternationalManagementInstitute.Mr. Lu is now a deputy GM and the Secretary of the Board of the Company. He used to be the assistant to the GM of the Company, executive deputy GM and deputy GM, the assistant to the GM and concurrently the manager of the financial departmentofShenzhenHarmonyWorldWatchesCenterCo.
Mr. Hu Xinglong, born in May, 1964, accountant, Chinese CPA, international certified internal auditor, EMBA of Sino-European International Management Institute. Mr.Hu is nowthe ChiefAccountant of the Company. He used to be deputychiefaccountant,managementofthefinancialdepartmentandmanageroftheauditdepartmentoftheCompany. Officetakinginshareholdercompanies
|||||||
|-|-|-|-|-|-|
|Namesofthepersonsinoffice|NamesoftheShareholders|Titlesengagedintheshareholders|Startingdateofofficeterm|Expirydateofofficeterm|Doeshe/shereceiveremunerationorallowancefromtheshareholder?|
|DiaoWeicheng|CATICInternationalHoldingsLimited|MemberofthePartyLeadershipGroup|November30,2010||No|
|DiaoWeicheng|CATICInternationalHoldingsLimited|DeputyGM|February29,2012||Yes|
|WangMingchuan|CATICInternationalHoldingsLimited|ViceChiefAccountant|November3,2010||No|
|WangMingchuan|AVICShenzhen|ChiefAccountant|August6,2010||Yes|
|LiuAiyi|CATICInternationalHoldingsLimited|SupervisorofHRDept.|July1,2010||Yes|
|ZhongSijun|AVICInternationalHoldingsLimited|Secretaryofthecompany|June1,2015||Yes|
|CaoZhen|CATICInternationalHoldingsLimited|Manageroftheenterprise|October20,2011||Yes|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
||||||
|-|-|-|-|-|
|||culturedepartment|||
|CaoZhen|AVICShenzhen|Supervisor|August20,2014|No|
|SuiYong|AVICShenzhen|DeputyGM|August6,2010|Yes|
|Explanationtotheofficetakinginshareholdercompanies|Inapplicable||||

OfficesTakeninOtherOrganizations
|||||||
|-|-|-|-|-|-|
|Namesofthepersonsinoffice|NamesofOtherOrganizations|Titlesengagedintheotherorganizations|Startingdateofofficeterm|Expirydateofofficeterm|Doeshe/shereceiveremunerationorallowancefromotherorganization?|
|ZhangHongguang|ChinaTimepiecesAssociation|Vicechairman|Jan.1,2010||Yes|
|ZhangShunwen|LixinCertifiedPublicAccountants(SpecialOrdinaryPartnership)|Partner|Jan.1,2011||Yes|
|WangYan|IntellectualPropertyAcademyofSouthChinaUniversityofTechnology|Full-timeprofessor|Aug.1,2010||Yes|
|Explanationtotheofficetakinginotherorganizations|Inapplicable|||||

Punishmentimposedbythesecuritiesregulatoryauthorityonthedirectors,supervisorsandseniorexecutivesbothin officeandhavinglefttheirpostsinthereportingperiod.
Inapplicable
IV. Remuneration to Directors, Supervisors and Senior Executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors, supervisors andseniorexecutives
1. Decision-making procedures of the remuneration to directors, supervisors and senior executives: Remuneration to directors and supervisors was reviewed and approved by theCompany’s General Meeting and remuneration to senior executiveswasreviewedandapprovedbytheBoardofDirectors.
2.Basisfordeterminingtheremunerationtodirectors,supervisorsandseniorexecutives:
(1) Basis for Determining Remuneration to Directors: Remuneration to the directors appointed by the controlling
shareholderisdeterminedanddistributedbythecontrollingshareholder.Allowancetoindependentdirectorsissubjectto
theproposalpreparedbytheBoardofDirectorsandreviewedandapprovedbytheGeneralMeetinganddisclosedinthe
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullTextCompany’s annual report. Except the aforesaid allowance, independent directors received no extra and undisclosedbenefitfromtheCompany,theCompany’sprincipalshareholdersorotherorganizationorpersonnelwithstakeholding. (2) Basis for Determining Remuneration to Supervisors: Remuneration to the supervisors appointed by the controlling shareholder is determined and distributed by the controlling shareholder. Remuneration to the staff representative supervisorisdeterminedbytheCompanybasedonthespecificjobhe/sheisengagedin.
(3)BasisforDeterminingRemunerationtoseniorexecutives:TheCompanybroughtintofullplayandmobilizedtheseniorexecutives’ work enthusiasm and creativeness based on theCompany’s operating results and with reference to the average remuneration level in the trade, better improved theCompany’s operating ability and result and ensured realization of theCompany’s strategic targets. The Company worked out the Measures for Administration of RemunerationtotheSeniorExecutivesin2009,insistedontheprincipleofdistributionaccordingtoworkandcombination of power, responsibility and benefit. The major orientation was “market based”, “full amount based” and “broadband based”. Commencing from 2007 on, the Company has introduced Balance Scorecard Strategic Management Structure, based on the establishment of the incentive and restriction mechanism adaptable to the modern enterprise system, improved the corporate governance structure, decomposed theCompany’s strategy to every department and post through the balance scorecard to determine seniorexecutives’ performance indicators and action plan on this basis, conductedregularstrategicreview, workreportandassessmentonquarterlybasis,anddecidedtheirtotalremuneration andrenewalofengagementaccordingtotheassessmentresultsandfulfillmentofperformances.
3.Actualpaymentoftheremunerationtodirectors,supervisorsandseniorexecutives:
The Company practiced the annual salary system for its senior executives. The annual salary structure consists of the basic annual salary and performance based annual salary. The annual salary assessment for the GM was carried out accordingtotheassessmentmethodsworkedoutbytheshareholder.Theassessmentbasisismainlyinaccordancewith aseriesofindicatorssystemspreparedbasedonthebalancescorecard.Theassessmentforotherseniorexecutiveswas conductedbasedontheindicatorsinthebalancescorecardpreparedatyearbeginningandtheworkreportatyearend. Remunerationtodirectors,supervisorsandseniorexecutivesinthereportingperiod
InCNY10,000
||||||||
|-|-|-|-|-|-|-|
|Names|Positions|Gender|Age|OfficeStatus|TotalremunerationreceivedfromtheCompany|Remunerationactuallyreceivedattheendofthereportingperiod|
|DiaoWeicheng|Chairman|Male|53|Inoffice|0|No|
|XuDongsheng|ManagingDirector|Male|50|Inoffice|183.54|No|
|WangMingchuan|Director|Male|50|Inoffice|0|No|
|LiuAiyi|Director|Male|44|Inoffice|0|No|
|ZhongSijun|Director|Male|40|Inoffice|0|No|
|CaoZhen|Director|Female|45|Inoffice|0|No|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
||||||||
|-|-|-|-|-|-|-|
|ZhangHongguang|IndependentDirector|Male|60|Inoffice|9|No|
|ZhangShunwen|IndependentDirector|Male|50|Inoffice|9|No|
|WangYan|IndependentDirector|Male|59|Inoffice|9|No|
|SuiYong|ChairmanoftheSupervisoryCommittee|Male|58|Inoffice|0|No|
|ChenZhuo|Supervisor|Male|40|Inoffice|120.13|No|
|TangBoxue|Supervisor|Male|55|Inoffice|85.06|No|
|ChenLibin|DeputyGM|Male|52|Inoffice|147.44|No|
|LuBingqiang|DeputyGM|Male|55|Inoffice|142.99|No|
|DuXi|DeputyGM|Male|41|Inoffice|158.31|No|
|LuWanjun|DeputyGM,Director,SecretaryoftheBoard|Male|49|Inoffice|140.87|No|
|HuXinglong|Chiefaccountant|Male|52|Inoffice|140.9|No|
|HuangYongfeng|Director|Male|42|Retired|0|No|
|Total|--|--|--|--|1,146.24|--|

 Incentiveequitytodirectors,supervisorsor/andseniorexecutivesinthereportingperiod
Inapplicable
VI. About Employees
Endedthereportingperiod,therewere altogether5,562employeesintheCompany.The compositionoftheir education background,agestructureandjobstructureareindicatedasfollows:
1.AgeStructure
||||||
|-|-|-|-|-|
|AgeComposition|Below30|30-40|over40|Total|
|Numberofpersons|2973|1876|713|5562|
|Proportion%|53.45%|33.73%|12.82%|100.00%|

2.EducationBackground
|||||||
|-|-|-|-|-|-|
|Educationbackground|Master’sdegreeorhigher|Universitygraduation|Juniorcollegegraduation|belowjuniorcollege|Total|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
|||||||
|-|-|-|-|-|-|
|composition||||||
|Numberofpersons|59|818|1540|3145|5562|
|Proportion%|1.06%|14.71%|27.69%|56.54%|100.00%|

3.JobStructure
|||||||
|-|-|-|-|-|-|
|Jobcomposition|Management|Operation|Financial|Production|Total|
|Number|442|4680|141|299|5562|
|Proportion|7.94%|84.14%|2.54%|5.38%|100.00%|

4.RemunerationPolicyforStaff
TheCompany’s remuneration policy is based on strategy, market, performances and job value. The Company has established a remuneration and benefit system with external competitiveness and internal fairness according to theCompany’sstrategic target, ensuring the attractivenessto highqualitytalentsof the industry, retaining thecore andkeytalentsoftheCompany,activatingthehumanresource,mobilizingstaff’senthusiasmandimprovingtheCompany’score competitiveness.
5.TrainingProgram
The Company is concentrated on watch industry, insists on the principle of guiding various businesses with the brand strategy,takesabroadviewoftheworldandhasestablisheditsvisionof“mouldinganinternationalbrandandbecoming aglobalizedenterprise”.Whilespeedingupdevelopment,theCompanyfirmlybelievesthat“tobuildbrandistointegrate the brand work andlife style”, the core speciality of the organization and staff and the qualification of the staff as brand personnelarethekeyelementsdeterminingthefuturedevelopment.Forthepurposeofcreatingthecorecompetitiveness based on “brand building”, meeting the strategy challenge, promoting realization of the long and short term plan, the Company determined the talent standard and qualification model based on the brand strategy by means of strategy analysis, internal and external environment analysis, talent supply analysis andemployees’ ability gap analysis, kept building a training system integrated with talent development model, improved comprehensive, multi-level, targeted and comprehensive accomplishment bearing, promoted overall and quick growth of employees and senior officers andenhancedtheCompany’scorecompetitiveness.
6. Ended December 31, 2015, there were no retired staff whose pension or expenses needed to be borne by the Company. The Company shows loving care for the retired staff by means of paying respective visits and extending its regards.
|||
|-|-|
||CurrentPeriod|
|Totalnumberofemployeesreceivingremunerationinthecurrentperiod|5,562|
|Totalamountofremunerationincurredinthecurrentperiod,inCNY10,000|49,856.71|
|Proportionoftotalremunerationintheoperationrevenueinthecurrentperiod|15.77%|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
|||
|-|-|
|Averageremunerationperseniorexecutive(CNY10,000/person)|152.3|
|Averageremunerationpercapitaforallemployees(CNY10,000)|8.96|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText Chapter 9 Corporate Governance
I. General
In the year 2015, the Company kept improving theCompany’s corporate governance structure strictly according to the PRCCompanyLaw,thePRCSecuritiesLawandtheregulationsofChinaSecuritiesRegulatoryCommissionconcerning 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 corporategovernanceandtheregulatorydocumentsofChinaSecuritiesRegulatoryCommissionconcerninggovernance oflistedcompanies.
TheCompanyestablishedandimprovedrelativelystandardizedcorporategovernancestructureandrulesofprocedures strictly according to law, rules and regulations, including the PRC Company Law, and theArticles ofAssociation of the Company, formed a decision-making and operation management system with theShareholders’ Meeting, the Board of Directors,theSupervisoryCommitteeandthemanagementoftheCompanyastheprincipalstructure.Theyimplemented theirrespectivedutiesaccordingtothePRCCompanyLawandtheArticlesofAssociation.
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., makesresolutiononincreaseanddecreaseoftheCompany’sregisteredcapital,issuingbond,etc.,electionandreplacementof directors,non-staffsupervisorsanddecisionontheirremunerationandwayofpayment.
TheBoardofDirectorsistheCompany’sdecision-makingorgan,takeschargeofimplementingthedecisionsmadebytheShareholders’General Meeting,assumesresponsibilityto theShareholders’General Meeting andreports thework toit; within the authorization from the General Meeting, decides theCompany’s externalinvestment, acquisition and salesof assets, assets pledgement, external guarantee, related transactions, etc., decides establishment of theCompany’sinternalmanagementorgans,engagementanddisengagementoftheCompany’sgeneralmanager,theBoardsecretary andotherseniorexecutives,etc. TheBoardofDirectorsconsistsofninedirectors,includingthreeindependentdirectors. TheBoardofDirectorshasestablishedthreesubordinatespecialcommittees,namelytheStrategyCommittee,theAudit CommitteeandNomination,EmolumentandAssessmentCommittee.
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 senior executive who breaches the law, the administrative rules and regulations, the Articles of Association or the GeneralMeeting’sresolutions. TheSupervisoryCommitteeconsistsofthreesupervisorsincludingtwostaffsupervisors. The management assumes responsibilityto theBoard of Directors and the General Manager takes fullresponsibilityfor 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 coordinatetherelationshipofalldepartments.
Does there exist any difference in compliance with the corporate governance, the PRC Company Law and the relevant provisionsofCSRC.
No
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText II. Independence in Business, Personnel, Assets, Organization, Finance, etc. from the Controlling Shareholders
The Company is independent in business, personnel, assets, organization and finance from its controlling shareholder. TheCompanyhascompleteandindependentbusinessandtheabilityofautonomousoperation.
Business.TheCompanyismainlyengagedintimepiecebusinessesandhasindependentproduction,auxiliaryproduction systemandcomplementaryfacilities,andpossessesitsownprocurementandsalessystems.Thereexistsnocompetition inthesamesectorbetweentheCompanyanditscontrollingshareholder.
Personnel: The Company is completely independent in organization and has sound systems in labor, personnel and salaries management. Except Mr. Lai Weixuan, the Chairman, Mr. Wang Mingchuan, Mr. Huang Yongfeng, Mr. Wu Xiaohua and Madam Wang Xiaohua, the four directors, and Mr. Sui Yong, the chairman of the Supervisory Committee, none of other senior executives takes any concurrent office in the shareholders and none of the financial staff works concurrentlyforanyrelatedparties.
Assets:TheassetsoftheCompanyanditscontrollingshareholderarehighlydistinct.TheCompanyenjoysthecorporate ownership over its assets and the assets are completely independent from its controlling shareholder. In addition, the CompanyenjoyssoleownershipoftheTrademarkFIYTA.
Organization: The Company has established its own intra-company organizations independent from the controlling shareholder.The Board, the SupervisoryCommittee and theother internal departments and offices work independently. There exist neither subordinate relations between the controlling shareholder/its functional departments nor doing joint office work. The controlling shareholder enjoys its rights and undertakes the corresponding obligations according to the law and has never been involved in any action which directly or indirectly interferes theCompany’s business activities surpassingtheauthorityoftheGeneralMeeting.
Finance: The Company has established independent financial department, worked out sound and independent financial and accounting system and financial management system and independently opened bank accounts. The controlling shareholderhasneverinterferedtheCompanyinitsfinancialandaccountingactivities.
III. Horizontal Competitions
Inapplicable
IV. Annual General Meeting and Extraordinary General Meetings in the Reporting Period
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText 1. GeneralMeetingsinthe ReportingPeriod
|||||||
|-|-|-|-|-|-|
|Sessions|MeetingTypes|Proportionofinvestorsintotalparticipants|Meetingdate|Disclosuredate|Disclosureindex|
|2014AnnualGeneralMeeting|AnnualGeneralMeeting|0.15%|June17,2015|June18,2015|www.cninfo.com.cn|
|20151stExtraordinaryGeneralMeeting|ExtraordinaryGeneralMeeting|0.01%|August31,2015|September1,2015|www.cninfo.com.cn|

Aboutinstitutionalinvestor(s)
Inapplicable
2.RequestbythePreferenceShareholderswiththeVoteRecoveredforanExtraordinaryGeneralMeeting Inapplicable
V. DutyPerformanceof Independent Directorsin theReportingPeriod
1. Attendanceof BoardMeetings andGeneralMeetings
||||||||
|-|-|-|-|-|-|-|
|IndependentDirectors’AttendanceatBoardMeetings|||||||
|Independentdirectors|NumberofBoardmeetingsnecessarytobeattendedinthereportingperiod|NumberofSpotAttendances|NumberofMeetingsAttendedbyCommunication|Numberofattendancesbyrepresentative|NumberofAbsence|Failuretopersonallyattendboardmeetingssuccessivelytwice(Yes/No)|
|ZhangHongguang|9|2|6|1|0|否|
|ZhangShunwen|9|3|6|0|0|否|
|WangYan|9|3|6|0|0|否|
|Numberofgeneralmeetingsattendedbyindependentdirectorsasnon-votingdelegates||2|||||

NotestoFailuretoPersonallyAttendBoardMeetingsSuccessivelyTwice
Inapplicable
2. Objectionof independent directorson some relevant issues
Didanyofindependentdirectorsputforthanyobjectiononsomerelevantissues
No
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText 3. Other Note toDuty Performance of Independent Directors
Inapplicable
VI Duty Performance of Special Committees under the Board of Directors in the Reporting Period
SummaryReport onPerformances ofthe StrategyCommittee of the BoardofDirectors
Duringthereportingperiod,theStrategyCommitteeperformeditsdutiesstrictlyaccordingtothelawandregulations,the ArticlesofAssociationandtheRulesforImplementationoftheStrategyCommitteeoftheBoardofDirectors,continuedto do research work on the strategic planning for theCompany’s long term development and supervised the Company in implementationofvariousstrategies.TheStrategyCommitteehelditsfirstmeetingofyear2015onMarch10,2015.The meetingreviewedandapprovedtheWorkReportoftheBoardofDirectorsinYear2014andtheProfitDistributionforYear 2014, etc.; The second meeting of the Strategy Committee of year 2015 was held on April 16, 2015. The meeting reviewedandapprovedtheplanofnon-publicissuingofA-sharestothespecifiedinvestors.
SummaryReport onPerformances ofthe Audit Committeeof theBoardof Directors
In accordance with China Securities Regulatory Commission, Contents and Formats for Information Disclosure by CompaniesthatOfferSecuritiestothePublicGuideline(No.2):ContentsandFormatofAnnualReports(Revision2012), Shenzhen Stock Exchange: Circular on Doing a Good Job in 2014 Annual Report and the Relevant Work in Listed Companies, Basic Regulations on Enterprise Internal Control, Memorandum of Information Disclosure No. 21–InformationtobeDisclosedintheAnnualReportandtheCompany’sRulesfortheWorkoftheAuditCommittee,theAuditCommitteeoftheCompanyconductedoverallreviewoftheCompany’sauditworkin2014.Thefollowingisthesummary of the performances of the Audit Committee and the work of Grant Thornton Certified Public Accountants (Special GeneralPartnership)(hereinafterreferredtoasthe“CPAs”).
1. Collecting General Information of the Company in the Reporting Period and Reviewing the Financial Statements PreparedbytheCompanyandProgressofInternalControlImplementation
On January 16,2015, theAudit Committee heardthemanagement’s overallreporton the productionandoperationand progress of significant events during the reporting period and reviewed 2015 Financial and Accounting StatementspreparedbytheCompanyandheardtheprogressofimplementationoftheCompany’sinternalcontrol.Initsopinion,the data in the financial and accounting statements prepared by the Company basically reflected the financial position and operationresultsoftheCompanyasendedatDecember31,2015,andapprovedtocarryouttheauditworkfortheyear 2015withthefinancialstatementsasthebase.TheinternalcontrolimplementationworkcarriedoutbytheCompanyhas been duly carried forward according to the Company Law, the Securities Law, Basic Standards for Enterprise Internal Control and other relevant laws and regulations. It has basically reflected theCompany’s internal control construction work ended December 31, 2015 and approved to prepare the Self-Assessment Report on the Internal Control on this basisandcarryouttheinternalcontrolauditworkin2015.
2.DecisiononOverallAuditPlan
BeforetheCPAsstartedauditing,theauditcommittee,afterconsultationwiththeCPAs,decidedthetimescheduleofthe
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText auditworkin2015.
3.SupervisionoftheAuditWork
OnJanuary18,2016,theCPAsformallystartedtheauditwork.Duringtheauditing,theAuditCommitteefrequentlyurged the CPAs to complete the audit work according to the time schedule of audit so as to ensure timely disclosure of theCompany’sannualreportandrelevantdocuments.
4.PreliminaryAuditor’sOpinionsafterReviewingtheFinancialandAccountingStatements
On March 4, 2016, the CPAs issued a preliminaryauditor’s opinions on the financial and accounting statements and internal control assessment, and the Audit Committee once again reviewed theCompany’s financial and accounting statements and internal control assessment report as preliminarily audited by the CPAs. In the opinion of the Audit Committee,thesefinancialstatementstruly,accuratelyandcompletelyreflectedthefinancialpositionandoperationresult of the Company ended December 31, 2015 and approved 2015Annual Report and Summary prepared on the basis of thesestatements.Thesaidinternalcontrolassessmentreporthastruly,accuratelyandentirelyreflectedtheCompany’s achievement in internal control construction ended December 31, 2015 and approved to complete the internal control assessmentreportandinternalcontrolauditreportbasedonsaidreport.Meanwhile,theauditcommitteedemandedthe CPAstocompletetheauditworkaccordingtotheplanassoonaspossiblesoastoensuretheCompanytodisclose2015 AnnualReportasscheduled.
5.SummaryWorkaftertheFormalReport
OnMarch8,2016,theCPAscompletedtheauditingproceduresasscheduledandissuedastandardunqualifiedauditor’s report and other relevant documents to the Audit Committee. The Audit Committee held 2016 1st Meeting of the Audit Committee on the very day and concluded a resolution and submitted it to the Board of Directors for review; and at the same time submitted the Summary Report on the Performances of the Audit Committee and the Audit Work of the CertifiedPublicAccountantsin2015.IntheopinionoftheAuditCommittee,GrantThorntonCertifiedPublicAccountants (Special General Partnership), the domestic and international auditor engaged by the Company faithfully performed the duties in process of offering audit performances according to the professional principle of independence, objectiveness andfairnessanddidagoodjobinauditing2015AnnualAccountingStatementsandtheinternalcontrolauditing.6.CPAs’PerformanceofBasicPrincipleoftheProfessionalEthics
(1)Independence
None of the stafffrom theCPAs workedfor the Company; the CPAsreceived neither cash nor economicinterest inany otherformfromtheCompanyotherthanthestatutoryauditfee.Thereexistedneitherdirectorindirectmutualinvestment between the CPAs and the Company nor close operation relationship; there existed no self-assessment on theCompany’s audit work and there existed no related relation between the member of the auditing team and theCompany’s decision makers; the CPAs and the auditing staff kept independence both in form and substance in the auditing work and complied with the requirement on keeping independence as specified in the basic principle of the professionalethics.
(2)ProfessionalCompetence
All the members of the auditing team possessed the professional knowledge and relevant professional qualification certificates necessary for the auditing work, were competent for the auditing work and at the same time maintained necessaryattentionandprofessionalcautiousness.
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText Summary Report on Performances of the Committees of Nomination, Remuneration and Assessment of the Board of Directors
In the reporting period, the Committees of Nomination, Remuneration and Assessment of the Board of Directors performed its functions strictly according to the law and regulations, the Articles of Association and the Rules for Implementation of the Committees of Nomination, Remuneration and Assessment of the Board of Directors. 2015 1st meeting of the Committees of Nomination, Remuneration and Assessment held on March 10, 2015 reviewed and approvedtheemolumentstotheseniorexecutivesintheyear2014;20152ndmeetingoftheCommitteesofNomination, Remuneration and Assessment held onAugust 12, 2015 reviewed and approved the proposal on election for the new Board of Directors; 2015 3rd meeting of the Committees of Nomination, Remuneration and Assessment held on September 23, 2015 reviewed and approved the transactions concerning election for the new Chairman of the Board, replacementofsomemembersofthespecialcommitteesoftheBoardofDirectors,andappointmentofnewGM,Deputy GMs,ChiefAccountantandtheSecretaryoftheBoard.
VII. Work Summary of the Supervisory Committee
DidtheSupervisoryCommitteefindanyriskexistinginperformingthesupervisionactivitiesinthereportingperiod No
VIII. Assessment and Incentive Mechanism for Senior Executives
TheCompanybroughtintofullplayandmobilizedtheseniorexecutives’workenthusiasmandcreativenessbasedontheCompany’s operating results and with reference to the average remuneration level in the trade, better improved theCompany’soperatingabilityandresultandensuredrealizationoftheCompany’sstrategictargets.TheCompanyworked out the Measures for Administration of Remuneration to the Senior Executives in 2009, insisted on the principle of distribution according to work and combination of power, responsibility and benefit. The major orientation was “market based”,“fullamountbased”and“broadbandbased”.Since2007,theCompanyhasintroducedthebalancescorecardas thestrategicmanagementinstrument.Basedontheestablishmentoftheincentiveandbindingmechanismcorresponding tothemodernenterprisesystemandimprovementofthecorporategovernancestructure,theCompanydisintegratedtheCompany’s strategy to various departments and posts by means of the balance scorecard so as to determine seniorexecutives’performancetargetsandplanofaction,andregularlyconductedstrategicreviewandworkreportassessment on quarterly basis, and decided the total remuneration and office renewal based on the assessment results and performances. The remuneration to theCompany’s senior executives is the annual salary system. The annual salary structureconsistsofthebasicannualsalaryandperformancebasedannualsalary.Theannualsalaryassessmentforthe GM was carried out according to the assessment methods worked out by the shareholder. The assessment basis is mainly based on a series of indicators systems prepared based on the balance scorecard, in which the performance indicators of the surplus revenue rate were the main indicators. The assessment for other senior executives was conducted based on the indicators in the balance scorecard prepared at year beginning and the work report and assessmentwerecarriedoutatyearend.
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText IX. Internal Control
1. No particular case found involving material defects in the internal control during the reporting period
No
2. Self-assessment Report ofthe Internal Control
||||
|-|-|-|
|Dateofdisclosingthefulltextoftheinternalcontrolassessmentreport|March10,2016||
|Indexofdisclosureofthefulltextoftheinternalcontrolassessmentreport|www.cninfo.com.cn||
|ProportionofthetotalassetsoftheorganizationsinvolvedintheassessmentinthetotalassetsoftheCompany’sconsolidatedfinancialstatements|100.00%||
|ProportionoftheoperationrevenueoftheentitiedinvolvedintheassessmentinthetotaloperationrevenueoftheCompany’sconsolidatedfinancialstatements|100.00%||
|Criteriaforaffirmingthedefects|||
|Categories|FinancialReport|Non-financialReport|
|Qualitativecriteria|(1)Materialdefects：Misstatement≥Profitbeforetax的5%；(2)Importantdefects：1%ofprofitbeforetax≤Misstatement＜5%ofprofitbeforetax;(3)Commondefects：Misstatement＜1%ofprofitbeforetax.|(1)Materialdefects:5%ofmisstatement≥Profitbeforetax;(2)Importantdefects:1%ofprofitbeforetax≤Misstatement＜5%ofprofitbeforetax； (3)Commondefects：Misstatement＜1%ifProfitbeforetax.|
|Quantitativecriterion|(1)Thisdefectinvolvesmalpracticesofthedirectors,supervisorsandseniorexecutives;(2)correctionofthefinancialstatementsalreadypublished;(3)material|(1) Seriously breaching the law, administrativeregulationsandnormativedocumentsofthestate;(2)"decision on major issues, important officerappointment and/or removal and arrangement ofimportantprojectsaswellasapplicationofbigsumoffund have not undergone collective decision-making|

FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
||||
|-|-|-|
||misstatementinvolvedinthecurrentfinancialstatementsfoundbytheCPAswhilesuchmisstatementhasnotbeenfoundinprocessofooperationoftheinternalcontrol;(4)theCompany’sauditcommitteeandtheinternalauditservicehaveconductedineffectivesupervisionovertheinternalcontrol.|procedures; (3) serious running off of officers andtechnicians of the key positions; (4) there is nosystem control available for the Company’sproduction and operation pratice or the system nolonger works; (5) the internal control for informationdisclosure no longer works, having caused theCompany censured publicly by the regulatoryauthority; (6) the results of the internal controlassessments, especially the material defects orimportantdefectshavenotbeenrectified.|
|Numberofmaterialdefectsinthefinancialstatements|0||
|Numberofmaterialdefectsinthenon-financialstatements|0||
|Numberofimportantdefectsinthefinancialreport|0||
|Numberofimportantdefectsinthenon-financialreport|0||

X. Internal Control Audit Report
|||
|-|-|
|ReviewOpinionsintheInternalControlAuditReport||
|Inouropinion,FIYTAHoldingsLimitedmaintainedeffectiveinternalcontrolonthefinancialreportinallmaterialaspectaccordingtotheBasicRegulatoinsforEnterpriseInternalControlandtherelevantprovisionsendedDecember31,2015.||
|Disclosureoftheinternalcontrolauditreport|Disclosed|
|Dateofdisclosingthefulltextoftheinternalcontrolauditreport|March10,2016|
|Indexofdisclosingthefulltextoftheinternalcontrolauditreport|www.cninfo.com.cn|
|Typeoftheonionsintheinternalcontrolauditreport|Standardunqualifiedauditor’sreport|
|Arethereanymaterialdefectsinthenon-financialreport|No|

HastheCPAsissuedaqualifiedauditor’sreportofinternalcontrol.
No
DoestheinternalcontrolauditreportissuedbytheCPAsagreewiththeself-assessmentreportoftheBoardofDirectors
Yes
FIYTAHOLDINGSLTD. 2015ANNUALREPORT, FullText
Chapter 10 Financial Report
Auditors’ Report
FIYTA Holdings Ltd.
For the Year Ended 31 December 2015
Grant Thornton
CONTENTS
Auditors’report
Consolidatedand company balancesheets 1-2
Consolidatedand company income statements 3
Consolidatedand company cashflow statements 4-5
Consolidated and company statements of changes inshareholders’
6-11
equity
Notes to the financial statements 12-89
致同会计师事务所(特殊普通合伙)中国北京朝阳区建国门外大街22号赛特广场5层邮编100004
电话+861085665588
传真+861085665120
(EnglishTranslationforReferenceOnly)
Auditors’ Report
GTCSZ(2016) No. 441ZA2106 Totheshareholdersof FIYTAHoldingsLtd.,
We have audited the accompanying financial statements of FIYTA Holdings Ltd. (“FIYTA Holdings”), which comprise the consolidated and company balance sheets as at 31 December 2015, and the consolidated and company income statements, the consolidated and company cash flow statements and consolidated and company statements of change inshareholders’ equity for the year then ended, and notestothefinancialstatements.
I.Management’sResponsibilityfortheFinancialStatements
Management of the Company is responsible for the preparation and fair presentation of these financial statements in accordance with the requirements of Accounting Standards for Business Enterprises, and for such internal control as management determines is necessary to enable the preparation of financial statementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.
II.Auditor’sResponsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with China Standards on Auditing. Those standards require that we comply with Chinese Certified PublicAccountants’ ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on theauditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to theentity’s preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as evaluating theoverallpresentationof thefinancialstatements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ourauditopinion.
III. Opinion
In our opinion, the accompanying financial statements of FIYTA Holdings present fairly, in all material respects, the consolidated and thecompany’s financial position of FIYTA Holdings as at 31 December 2015,andoftheirconsolidatedandthecompany’s financialperformanceandcash flows fortheyear then endedinaccordancewiththerequirementsof AccountingStandardsforBusinessEnterprises.
Grant Thornton ChineseCertifiedPublicAccountant SuYang ChineseCertifiedPublicAccountant ChenZhifang Beijing,China 10March2016
Consolidated and company balance sheets
Asat31 December2015
Preparedby:FIYTAHoldingsLtd. Monetaryunit:RMBYuan
|||||||
|-|-|-|-|-|-|
|Item|Notes|Asat31/12/2015||||
|||Consolidated|Company|Consolidated|Company|

Currentassets:
Cashandbankbalances V.1 638,962,875.93 513,869,824.81 116,455,070.54 37,060,566.79
Financialassetsmeasuredatfair
valuethroughprofitorlossfor - - - -
thecurrentperiod
Notesreceivable V.2 7,197,788.08 - 6,162,768.29 -
Accountsreceivable V.3 304,725,676.29 351,276,905.53 11,735,787.90
Prepayments V.4 48,869,563.60 43,054,642.06 -
Interestreceivable - - - -
Dividendsreceivable - - - -
Otherreceivables V.5 39,847,732.76 1,527,756,817.18 41,525,719.27 1,524,513,111.66
Inventories V.6 2,092,691,019.29 - 2,133,791,024.32 -
Non-currentassetsduewithin
- - - -
oneyear
Othercurrentassets V.7 15,796,773.56 2,089,651.83 14,421,516.43 503,071.74
Totalcurrentassets 3,148,091,429.51 2,043,716,293.82 2,706,687,646.44 1,573,812,538.09
Non-currentassets:
Available-for-salefinancialassets V.8 85,000.00 85,000.00 85,000.00 85,000.00
Held-to-maturityinvestments - - - -
Long-termreceivables - - - -
Long-termequityinvestment V.9 43,221,572.05 814,121,292.05 42,389,759.91 773,189,479.91
Investmentproperty V.10 216,948,193.02 216,948,193.02 226,091,938.89 226,091,938.89
Fixedassets V.11 361,979,828.01 113,553,719.50 323,732,870.58 117,256,223.80
Constructioninprogress V.12 173,189,274.57 173,189,274.57 51,389,263.53 51,389,263.53
Constructionmaterials - - - -
Disposaloffixedassets - - - -
Productivebiologicalassets - - - -
Oilandgasassets - - - -
Intangibleassets V.13 36,429,626.66 30,104,404.98 35,502,525.72 29,165,984.08
Developmentexpenditures - - - -
Goodwill V.14 - - - -
Long-termdeferredexpenses V.15 155,704,564.39 4,693,186.19 149,733,566.03 4,813,767.34
Deferredtaxassets V.16 105,901,723.16 1,081,888.10 90,669,076.10 1,198,606.77
Othernon-currentassets V.17 5,118,833.65 5,118,833.65 31,500,000.00 -
Totalnon-currentassets 1,098,578,615.51 1,358,895,792.06 951,094,000.76 1,203,190,264.32
Totalassets 4,246,670,045.02 3,402,612,085.88 3,657,781,647.20 2,777,002,802.41
Consolidated and company balance sheets (continued)
Asat31 December2015
|||||
|-|-|-|-|
|Notes|Asat31/12/2015|||
||Consolidated|Company|Consolidated|

Currentliabilities
Short-termloans V.18 988,186,200.00 700,000,000.00 989,445,000.00 683,000,000.00
Financialliabilitiesmeasuredat
fairvaluethroughprofitorloss - - - -
forthecurrentperiod
Notespayable - - - -
Accountspayable V.19 155,939,686.54 23,711,339.76 147,119,118.81 211,339.76
Advancesfromcustomer V.20 18,031,129.87 3,207,516.61 12,087,368.17 3,484,435.98
Employeebenefitspayable V.21 39,396,747.95 8,188,793.56 38,648,432.41 10,307,200.18
Taxespayable V.22 68,921,732.81 2,857,031.42 77,602,770.06 3,505,501.05
Interestpayable V.23 19,211,630.02 18,170,745.35 19,420,893.75 18,139,997.63
Dividendspayable - - - -
Otherpayables V.24 48,131,616.20 17,550,238.03 188,574,900.45 165,507,426.74
Non-currentliabilitiesdue
108,914,000.00 - - -
withinoneyear
Othercurrentliabilities V.25 1,988,252.38 - 5,482,521.27 -
Totalcurrentliabilities 1,448,720,995.77 773,685,664.73 1,478,381,004.92 884,155,901.34
Non-currentliabilities:
Long-termloan V.26 90,994,964.33 68,361,928.00 139,952,425.65 15,361,928.00
Bondspayable V.27 399,823,760.28 399,823,760.28 398,767,929.40 398,767,929.40
Long-termpayables - - - -
Long-termemployeebenefits
- - - -
payable
Specificpayables - - - -
Contingentliabilities - - - -
Deferredincome V.28 4,300,000.00 4,300,000.00 4,200,000.00 4,200,000.00
Deferredtaxliabilities - - - -
Othernon-currentliabilities - - - -
Totalnon-currentliabilities 495,118,724.61 472,485,688.28 542,920,355.05 418,329,857.40
Totalliabilities 1,943,839,720.38 1,246,171,353.01 2,021,301,359.97 1,302,485,758.74
Sharecapital V.29 438,744,881.00 438,744,881.00 392,767,870.00 392,767,870.00
Capitalreserve V.30 1,062,455,644.22 1,068,111,185.32 525,508,281.60 531,163,822.70
Less:treasurystock - - - -
Othercomprehensiveincome V.31 -17,145,189.71 - -17,609,265.22 -
Specialreserves - - - -
Surplusreserve V.32 179,743,077.15 179,743,077.15 165,915,466.89 165,915,466.89
Undistributedprofit V.33 635,417,237.55 469,841,589.40 566,819,577.37 384,669,884.08
Totalshareholders'equity
2,299,215,650.21 2,156,440,732.87 1,633,401,930.64 1,474,517,043.67
attributabletotheparent
company 3,614,674.43 - 3,078,356.59 -
Totalshareholders’equity 2,302,830,324.64 2,156,440,732.87 1,636,480,287.23 1,474,517,043.67
Totalliabilitiesand
4,246,670,045.02 3,402,612,085.88 3,657,781,647.20 2,777,002,802.41
shareholders’equity
Legalrepresentative:Xu Principalinchargeofaccounting:Hu Headofaccounting
Dongsheng Xinglong department:HuXinglong
Consolidated and company income statements
For theyear ended31 December2015
Preparedby:FIYTAHoldingsLtd. Monetaryunit:RMBYuan
|||||
|-|-|-|-|
|Notes|Yearended31/12/2015|||
||Consolidated|Company|Consolidated|

108,183,860.4
I.Operatingrevenue V.34 3,162,196,212.90 95,435,182.26 3,278,142,785.87
5
Less:Operatingcost V.34 1,929,513,666.04 14,952,820.19 2,054,714,957.45 30,576,403.18
Businesstaxandsurcharges V.35 30,674,510.18 5,351,881.76 23,901,881.30 5,072,072.03
Sellinganddistribution
V.36 779,536,520.59 - 722,839,956.11 -
expenses
G&Aexpenses V.37 198,077,866.76 53,984,337.81 208,452,027.58 53,365,686.49
Financialexpenses V.38 94,347,464.79 18,388,066.34 105,819,460.82 22,482,320.07
Impairmentloss V.39 6,253,998.83 -566,874.66 2,621,303.29 441,201.26
Add:Gainsfromchangesinfairvalue
- - - -
("-"forlosses)
Investmentgain(“-“forlosses) V.40 831,812.14 132,219,952.72 -848,180.21 87,893,120.21
Including:Incomefrom
investmentinassociatesandjointly 831,812.14 831,812.14 -848,180.21 -848,180.21
controlledenterprise
II.Operatingprofit(“-“forlosses) 124,623,997.85 135,544,903.54 158,945,019.11 84,139,297.63
Add:non-operatingincome V.41 12,037,251.82 3,566,753.92 12,541,095.86 8,530,541.14
Including:gainsfromdisposalof
94,316.07 4,000.00 70,124.76 57,532.85
non-currentassets
Less:non-operatingexpenses V.42 1,131,027.33 316,767.32 1,091,494.98 212,482.77
Including:lossesfromdisposalof
59,880.75 16,717.32 115,045.74 32,482.77
non-currentassets
III.Profitbeforeincometax("-"for
135,530,222.34 138,794,890.14 170,394,619.99 92,457,356.00
losses)
Less:incometaxexpenses V.43 13,486,541.61 518,787.56 24,291,386.77 443,629.11
IV.Netprofit fortheyear("-"for
122,043,680.73 138,276,102.58 146,103,233.22 92,013,726.89
losses)
Attributableto:
121,702,057.44 - 145,591,136.39 -
Shareholdersoftheparentcompany
Minorityinterests 341,623.29 - 512,096.83 -
V.Aftertaxothercomprehensive
658,770.06 - -9,354,879.56 -
income
Attributableto:
464,075.51 - -9,348,432.13 -
Shareholdersoftheparentcompany
A.Notreclassifiedsubsequentlytoprofit
- - - -
orloss
B.Reclassifiedsubsequentlytoprofitor
464,075.51 - -9,348,432.13 -
loss
a.Translationdifferencesarisingon
translationofforeigncurrencyfinancial 464,075.51 - -9,348,432.13 -
statements
Minorityinterests 194,694.55 - -6,447.43 -
VI.Totalcomprehensiveincomefor
122,702,450.79 138,276,102.58 136,748,353.66 92,013,726.89
theyear
Attributableto:
122,166,132.95 - 136,242,704.26 -
Shareholdersoftheparentcompany
Minorityinterests 536,317.84 - 505,649.40 -
VII.Earningspershare: - -
1.Basicearningspershare 0.310 - 0.371 -
2.Dilutedearningspershare - - - -
Principalinchargeofaccounting:Hu Headofaccounting
Legalrepresentative:XuDongsheng
Xinglong department:HuXinglong
Consolidated and company cash flow statements
For theyear ended31 December2015
Preparedby:FIYTAHoldingsLtd. Monetaryunit:RMBYuan
|||||
|-|-|-|-|
|Notes|Yearended31/12/2015|||
||Consolidated|Company|Consolidated|

 I.Cashflowsfromoperatingactivities:
Cashreceivedfromsalesof goodsandrendering
3,655,072,713.33 106,837,676.30 3,753,155,046.51 342,112,116.63 of services
Refundoftaxesandsurcharges - - - - Cashreceivedrelatingtootheroperatingactivities V.44 41,260,214.12 62,329,516.00 39,294,097.35 12,452,134.93 Subtotalof cashinflowsfromoperating
3,696,332,927.45 169,167,192.30 3,792,449,143.86 354,564,251.56 activities
Cashpaidforgoodsandservices 2,182,822,674.35 - 2,491,056,383.84 21,692,373.05 Cashpaidtoandonbehalf of employees 498,411,775.82 50,544,482.34 450,944,736.29 42,583,354.07 Paymentsof taxesandlevies 267,337,552.24 10,408,943.54 199,704,011.66 8,053,948.98 Cashpaidrelatingtootheroperatingactivities V.44 351,523,932.63 13,607,560.44 361,554,381.10 137,085,829.65 Subtotalof cashoutflowsforoperating
3,300,095,935.04 74,560,986.32 3,503,259,512.89 209,415,505.75 activities
Netcashflowsfromoperatingactivities 396,236,992.41 94,606,205.98 289,189,630.97 145,148,745.81 II.Cashflowsfrominvestingactivities
Cashreceivedfromdisposalof investments - - 1,400,000.00 Cashreceivedfromreturnsoninvestments - 131,388,140.58 - 88,741,300.42 Netcashreceivedfromdisposaloffixedassets,
340,367.11 111,800.00 51,919.04 41,000.00 intangibleassetsandotherlong-termassets
Cashreceivedfromdisposalofsubsidiariesand
- - - - otherbusinessunits
Netcashreceivedrelatingtootherinvesting
- - - -
activities
Subtotalofcashinflowsfrominvesting
340,367.11 131,499,940.58 51,919.04 90,182,300.42
activities
Cashpaidtoacquirefixedassets,intangibleassets
230,352,063.28 105,530,925.54 185,725,953.70 47,533,744.89
andotherlong-termassets
Cashpaidtoacquireinvestments - 40,100,000.00 - - Netcashpaidtoacquiresubsidiariesandother
- - - - businessunits
Cashpaidrelatingtootherinvestingactivities V.44 - - 1,575,000.00 1,575,000.00 Subtotalofcashoutflowsforinvesting
230,352,063.28 145,630,925.54 187,300,953.70 49,108,744.89 activities
Netcashflowsfrominvestingactivities -230,011,696.17 -14,130,984.96 -187,249,034.66 41,073,555.53III.Cashflowsfromfinancingactivities：
Cashreceivedfromcapitalcontributions 585,499,993.55 585,499,993.55 - - Including:Cashreceivedfromcapitalcontributions
- - - - byminorityshareholdersof subsidiaries
Cashreceivedfromloans 2,338,413,855.11 1,813,000,000.00 1,383,754,987.79 838,000,000.00 Cashreceivedfrombonds - - - - Cashreceivedrelatingtootherfinancingactivities V.44 13,500,000.00 - 189,684,398.22 150,001,328.82 Sub-totalofcashinflowsfromfinancing
2,937,413,848.66 2,398,499,993.55 1,573,439,386.01 988,001,328.82 activities
Cashrepaymentsof borrowings 2,289,386,353.35 1,743,000,000.00 1,489,909,721.41 1,050,000,000.00 Cashpaymentsforinterestexpensesand
127,821,827.59 107,150,257.43 135,784,422.03 115,502,648.61 distributionof dividendsorprofits
Including:Cashpaymentsfordividendsorprofitto
- - - - minorityshareholdersofsubsidiaries
Cashpaymentsrelatingtootherfinancingactivities V.44 165,515,699.12 152,015,699.12 42,248,452.40 1,165,383.00 Including:Cashpaymentstominorityshareholders
- - - - ofsubsidiariesforcapitalreduction
Sub-totalofcashoutflowsforfinancing
2,582,723,880.06 2,002,165,956.55 1,667,942,595.84 1,166,668,031.61 activities
Netcashflowsfromfinancingactivities 354,689,968.60 396,334,037.00 -94,503,209.83 -178,666,702.79 IV.Effectof foreignexchangeratechangeson
1,592,540.55 - -220,426.68 - cashandcashequivalents
V.Netincreaseincashandcashequivalents V.45 522,507,805.39 476,809,258.02 7,216,959.80 7,555,598.55 Add:Cashandcashequivalentsasat31/12/2014 114,880,070.54 35,485,566.79 107,663,110.74 27,929,968.24 VI.Cashandcashequivalentasat31/12/2015 V.45 637,387,875.93 512,294,824.81 114,880,070.54 35,485,566.79 Head of accounting Legalrepresentative:XuDongsheng Principalinchargeofaccounting: HuXinglong
department:HuXinglong
Consolidated statements of changes inshareholders’ equity
fortheYearEnded31December2015
Preparedby:FIYTAHoldingsLtd. MonetaryUnit:RMBYuan Yearended31/12/2015
||||||||||
|-|-|-|-|-|-|-|-|-|
|Attributabletoshareholders'equityoftheparentcompany||||||||Minorityinterest|
|Sharecapital|Capitalreserve|Less:treasurystocks|Othercomprehensiveincome|Specialreserve|SurplusReserve|Generalriskreserve|Undistributedprofit||

I.Balanceat31/12/2014 392,767,870.00 525,508,281.60 - -17,609,265.22 - 165,915,466.89 - 566,819,577.37 3,078,356.59 1,636,480,287.23 Add:Changesinaccounting
—— —— —— —— —— —— —— —— —— —— policies
Correctionoferrors —— —— —— —— —— —— —— —— —— —— Consolidationundercommon
- - - - - - - - - - control
Others - - - - - - - - - - II.Balanceat1/1/2015 392,767,870.00 525,508,281.60 - -17,609,265.22 - 165,915,466.89 - 566,819,577.37 3,078,356.59 1,636,480,287.23 III.Changesinequityforthe
45,977,011.00 536,947,362.62 - 464,075.51 - 13,827,610.26 - 68,597,660.18 536,317.84 666,350,037.41 year("-"fordecrease)
(I)Totalcomprehensiveincome
- - - 464,075.51 - - - 121,702,057.44 536,317.84 122,702,450.79 fortheyear
(II)Shareholders'contributions
45,977,011.00 536,947,362.62 - - - - - - - 582,924,373.62 anddecreaseofcapital
1.Commonsharesbythe
45,977,011.00 536,947,362.62 - - - - - - - 582,924,373.62 shareholders
2.Increaseinshareholders'
equityresultedfromshare-based - - - - - - - - - - payments
3.Others - - - - - - - - - - (IV)Transferwithinequity - - - - - - - - - - 1.Capitalreservesconverting
- - - - - - - - - - intosharecapital
2.Surplusreservesconverting
- - - - - - - - - - intosharecapital
3.Surplusreservescoverthe
- - - - - - - - - - deficit
Consolidated statements of changes inshareholders’ equity (continued)
fortheYearEnded31December2015
Preparedby:FIYTAHoldingsLtd. MonetaryUnit:RMBYuan Yearended31/12/2014
||||||||||
|-|-|-|-|-|-|-|-|-|
|Attributabletoshareholders'equityoftheparentcompany||||||||Minorityinterest|
|Sharecapital|Capitalreserve|Less:treasurystocks|Othercomprehensiveincome|Specialreserve|SurplusReserve|Generalriskreserve|Undistributedprofit||

I.Balanceat31/12/2013 392,767,870.00 525,506,952.78 - -8,260,833.09 - 156,714,094.20 - 469,706,600.67 2,384,907.19 1,538,819,591.75 Add:Changesinaccounting
—— —— —— —— —— —— —— —— —— —— policies
Correctionoferrors —— —— —— —— —— —— —— —— —— —— Consolidationundercommon
- - - - - - - - - - control
Others - - - - - - - - - - II.Balanceat1/1/2014 392,767,870.00 525,506,952.78 - -8,260,833.09 - 156,714,094.20 - 469,706,600.67 2,384,907.19 1,538,819,591.75 III.Changesinequityforthe
- 1,328.82 - -9,348,432.13 - 9,201,372.69 - 97,112,976.70 693,449.40 97,660,695.48 year("-"fordecrease)
(I)Totalcomprehensiveincome
- - - -9,348,432.13 - - - 145,591,136.39 505,649.40 136,748,353.66 fortheyear
(II)Shareholders'contributions
- 1,328.82 - - - - - - 187,800.00 189,128.82 anddecreaseofcapital
1.Commonsharesbythe
- - - - - - - - 187,800.00 187,800.00 shareholders
2.Increaseinshareholders'
equityresultedfromshare-based - - - - - - - - - - payments
2.Distributionstoshareholders - - - - - - - -39,276,787.00 - -39,276,787.00 3.Others - - - - - - - - - - (IV)Transferwithinequity - - - - - - - - - - 1.Capitalreservesconverting
- - - - - - - - - - intosharecapital
2.Surplusreservesconverting
- - - - - - - - - - intosharecapital
3.Surplusreservescoverthe
- - - - - - - - - - deficit
Company statements of changes inshareholders’ equity
fortheYearEnded31December2015
Preparedby:FIYTAHoldingsLtd. MonetaryUnit:RMBYuan Yearended31/12/2015
||||||||
|-|-|-|-|-|-|-|
|Sharecapital|Capitalreserve|Less:treasurystocks|Othercomprehensiveincome|Specialreserve|SurplusReserve|Undistributedprofit|

 I.Balanceat31/12/2014 392,767,870.00 531,163,822.70 - - - 165,915,466.89 384,669,884.08 1,474,517,043.67 Add:Changesinaccountingpolicies —— —— —— —— —— —— —— —— Correctionoferrors —— —— —— —— —— —— —— —— Others - - - - - - - - II.Balanceat1/1/2015 392,767,870.00 531,163,822.70 - - - 165,915,466.89 384,669,884.08 1,474,517,043.67 III.Changesinequityfortheyear("-"for
45,977,011.00 536,947,362.62 - - - 13,827,610.26 85,171,705.32 681,923,689.20 decrease)
(I)Totalcomprehensiveincomefortheyear - - - - - - 138,276,102.58 138,276,102.58 (II)Shareholders'contributionsanddecreaseof
45,977,011.00 536,947,362.62 - - - - - 582,924,373.62 capital
1.Commonsharesbytheshareholders 45,977,011.00 536,947,362.62 - - - - - 582,924,373.62 2.Increaseinshareholders'equityresultedfrom
- - - - - - - - share-basedpayments
4.Others - - - - - - - - (V)SpecialReserve - - - - - - - - 1.Provisionfortheyear - - - - - - - - 2.Usefortheyear - - - - - - - - (VI)Others - - - - - - - - IV.Balanceat31/12/2015 438,744,881.00 1,068,111,185.32 - - - 179,743,077.15 469,841,589.40 2,156,440,732.87 Headofaccountingdepartment:Hu LegalRepresentative:XuDongsheng Principalinchargeofaccounting:HuXinglong
Xinglong
Company statements of changes inshareholders’ equity
fortheYearEnded31December2015
Preparedby:FIYTAHoldingsLtd. MonetaryUnit:RMBYuan Yearended31/12/2014
||||||||
|-|-|-|-|-|-|-|
|Sharecapital|Capitalreserve|Less:treasurystocks|Othercomprehensiveincome|Specialreserve|SurplusReserve|Undistributedprofit|

 I.Balanceat31/12/2013 392,767,870.00 531,162,493.88 - - - 156,714,094.20 341,134,316.88 1,421,778,774.96 Add:Changesinaccountingpolicies —— —— —— —— —— —— —— —— Correctionoferrors —— —— —— —— —— —— —— —— Others - - - - - - - - II.Balanceat1/1/2014 392,767,870.00 531,162,493.88 - - - 156,714,094.20 341,134,316.88 1,421,778,774.96 III.Changesinequityfortheyear("-"for
- 1,328.82 - - - 9,201,372.69 43,535,567.20 52,738,268.71 decrease)
(I)Totalcomprehensiveincomefortheyear - - - - - - 92,013,726.89 92,013,726.89 (II)Shareholders'contributionsanddecreaseof
- 1,328.82 - - - - - 1,328.82 capital
1.Commonsharesbytheshareholders - - - - - - - - 2.Increaseinshareholders'equityresultedfrom
- - - - - - - - share-basedpayments
1.Transfertosurplusreserves - - - - - 9,201,372.69 -9,201,372.69 - 2.Distributionstoshareholders - - - - - - -39,276,787.00 -39,276,787.00 3.Others - - - - - - - - (IV)Transferwithinequity - - - - - - - - 1.Capitalreservesconvertingintosharecapital - - - - - - - - 2.Surplusreservesconvertingintosharecapital - - - - - - - - 3.Surplusreservescoverthedeficit - - - - - - - - 4.Others - - - - - - - - (V)SpecialReserve - - - - - - - - 1.Provisionfortheyear - - - - - - - - 2.Usefortheyear - - - - - - - - (VI)Others - - - - - - - - IV.Balanceat31/12/2014 392,767,870.00 531,163,822.70 - - - 165,915,466.89 384,669,884.08 1,474,517,043.67 Headofaccountingdepartment:Hu LegalRepresentative:XuDongsheng Principalinchargeofaccounting:HuXinglong
Xinglong
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Notes to the Financial Statements
I. Companyinformation
1. CompanyProfile
FIYTAHoldingsLtd.(the“Company”)wasfounded,undertheapprovalof ShenFuBanFu(1992)1259issuedbytheGeneral Officeof ShenzhenMunicipalGovernment,throughtherestructuringof formerShenzhenFIYTATimeIndustrialCompanyby the promoter of China National Aero-Technology Import and Export Shenzhen Industry& Trade Center (name changed to “China National Aero-Technology Shenzhen Co., Ltd” lately) on 25 December 1992, and the name changed to “Shenzhen FIYTAHoldingsLtd”.
Pursuant to the approval of ShenRen Yin Fu Zi (1993) 070 issued by thePeople’s Bank of China Shenzhen Special Economic Zone Branch, the Company issued Renminbi ordinary shares (A shares) and Renminbi special shares (B shares) publicly on 10 March 1993. On3 June 1993, both theCompany’s A shares and B shares were listed and traded on Shenzhen StockExchange pursuanttotheapprovalofShenZhengBanFu[1993]20issuedbyShenzhenSecuritiesRegulatoryOfficeandShenZhengShiZi (1993)16issuedbyShenzhenStockExchange.
On 30 January 1997, the company name changed to Shenzhen FIYTA Holdings Limited with the approval of Shenzhen MunicipalAdministrationforIndustryandCommerce.
On 4 July 1997, China National Aero-Technology Shenzhen Co., Ltd. ("CATIC Shenzhen Company") transferred 72,360,000 corporate shares (accounting for52.24% of the Company's total share capital) to Shenzhen China Aviation Group Company Limited(previouslyknownas"ShenzhenChinaAviationIndustryCompanyLimited",hereinafterreferredtoas"ChinaNational Aviation Group") according to share transfer agreement signed by both parties. As a result, theCompany’s controlling shareholderchangedfromCATICShenzhenCompanytoChinaNationalAviationGroup.
On26October 2007, the Company implemented split-share reform. Under thepremise of maintaining the Company's totalof 249,317,999 shares unchanged, the Company's shareholders of non-tradable shares paid 3.1 shares per 10 tradable shares to all thetradableshareshareholdersregisteredonoptionregistrationdatedesignatedbythesplit-sharereformprogram.Atthatpoint,afterthereform,thesharesheldbyChinaNationalAviationGroupreducedto44.69%from52.24%.
On29February2008,duetoexpandingthescopeofbusiness,theCompany’scorporatebusinesslicensewasalteredfromShen Si Zi No.4403011001583 to No.440301103196089 with the approval of Shenzhen Municipal Administration for Industry and Commerce.
Withtheapprovalof ChinaSecuritiesRegulatoryCommission(CSRC)aboutnon-publicofferingof stocksof ShenzhenFIYTA Holdings Limited”(ZhengJianXuKe[2010]1703) and the approval of State-owned Assets Supervision and Administration Commission of the State Council (SASAC) about non-public offering of stocks of Shenzhen FIYTA Holdings Limited” (SASAC(2010)430) in 2010, the Company was approved to issue not more than 50,000,000 ordinary shares (A shares) through non-public offering.After the completion of the non-public offering of stocks on 9 December 2010, theCompany’s registered capital was increased to RMB280,548,479.00 and the equity capital of the Company held by China National Aviation Groupreducedto41.49%.
On8April2011,atthebasisof 280,548,479equityshareson31December2010,theCompanyissued4sharesforeach10shares bytransferof capitalreservestosharecapital.Totalsharesof theCompanywereincreasedto392,767,870sharesafterthenon. On11November 2015,withtheapprovalof China Securities Regulatory Commission(CSRC)“Replyof non-publicoffering of stocks of Shenzhen FIYTA Holdings Limited”(ZhengJianXuKe[2015]2588) and the approval of State-owned Assets SupervisionandAdministrationCommissionof theStateCouncil(SASAC)“Replyof non-publicofferingof stocksof Shenzhen FIYTAHoldingsLimited”(SASAC(2015)415),theCompanywasapprovedtoissuenotmorethan46,911,649ordinaryshares(A shares) through non-public offering. After the completion of the non-public offering of stocks on 22 December 2015, theCompany’sregisteredcapitalwasincreasedtoRMB438,744,881.00andtheequitycapitalof theCompanyheldbyChinaNationalAviationGroupreducedto37.15%.
Asof 31December2015,theCompanyhasaccumulativelyissued438,744,881sharesintotal,refertoNoteV.29fordetails. Thebusinessscopeof theCompanyanditssubsidiaries(collectivelyreferredtoasthe“Group”)mainlyincludes:producingand sellingof analoguequartzwatchesanditsmovements,components,varioustimingdevices,processingandwholesalingkaratgold jewelry watches (production sites are to be declared separately); domestic commercial and material supply and distributing business (excluding goods under exclusive operational rights, special control and exclusive sales); property management and leasing;importandexportbusinessof self-design,construction;importandexportbusiness(accordingtoShenMaoGuanDeng ZhengZi No.2007-072).The legal representative of the Company is Wu Guangquan. The residence of the Company is FIYTA Hi-TechBuildinglocatedatGaoXinNanYiDao,NanshanDistrict,Shenzhen.
Corporate governance structure that are established by the Company includes general meeting of shareholders, board of
directors, board of supervisors, audit committee, strategy committee and nomination, remuneration and evaluation committee.
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The Company has administration, human resources, finance, property, innovative design, strategy and information department, generalofficeof boardofdirectors,audit,R&D,andotherfunctionaldepartments.
The financial statements and notes to the financial statements have been approved by the 6th meeting of the 8th Board of Directorsof theCompanyon8March2016.
2. Scopeof consolidatedfinancialstatements
Within the reporting period, ProTop Limited, one of the subsidiaries of the Company, was deregistered. Refer to Notes VI, Changeof consolidationscope,andNotesVII,Equityinotherentitiesformoredetails.
II.Basisof preparation
The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and their application guidelines, interpretations and other relevant requirements (collectively, " Accounting Standards for Business Enterprises ").Besides, the Group discloses the relevant financial information in accordance with Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.15 - General Provisions on FinancialReports(2014Revision)announcedbyChinaSecuritiesRegulatoryCommission.
Thefinancialstatementsof theCompanyhavebeenpreparedongoingconcernbasis.
The Group follows the accrual basis of accounting. The financial statements are prepared under the historical cost convention except for certain financial instruments. If impaired, the assets shall provide for impairment in accordance with the relevant regulations.
III. Significantaccountingpoliciesandaccountingestimates
The Group determines the policies of depreciation of fixed asset, amortization of intangible assets, capitalized conditions ofR&Dexpenses and revenuerecognitionaccordingtothecharacteristicsof itsproductionand operation. Refer toNotesIII.16, 19,20and25forspecificaccountingpolicies.
1. Representationof compliancewiththeAccountingStandardsforBusinessEnterprises
Thefinancialstatementsarepreparedinaccordancewiththerequirementsof theAccountingStandardsforBusinessEnterprises, whichhavetrulyandcompletelypresentedthefinancialpositionof theGroupandCompanyasof 31December2015andtheir operatingresultsandcashflowsandotherrelevantinformationfortheyearended31December2015.
2. Accountingperiod
Accountingyearstartson1Januaryandendson31December.
3. OperatingCycle
Theoperatingcycleof theGroupis12months.
4. Functionalcurrency
TheCompanyanditsdomesticsubsidiariesadoptRenminbi(RMB)asfunctionalcurrency.
Except for the Swiss-based subsidiary Montres Chouriet SA (the “Swiss Company”), which is a subsidiary of FIYTA (Hong Kong) Limited (the “FIYTA Hong Kong”), uses Swiss Franc as the functional currency on the basis of the primary economic environmentinwhichtheSwissCompanyoperates,allother subsidiariesoutsideof themainlandChina,includingHARMONY WorldWatchesInternationalLimited(the“WorldWatchesInternational)”,asubsidiaryof ShenzhenHARMONYWorldWatches CentreCo.,Ltd(the“HARMONYCompany”),FIYTAHong Konganditssubsidiary Station68Limited(the“Station 68”) as well as Nature Art Limited, which is special purpose vehicles controlled by Station 68, use Hong Kong Dollar (HKD) as the functionalcurrencyandtheirfinancialstatementsaretranslatedintoRMBonthepreparationof thefinancialstatements. ThecurrencyusedinpreparationoftheGroup’sfinancialstatementsisRMB.
5. Accountingtreatmentforbusinesscombinationsinvolvingentitiesundercommoncontrolandnotundercommoncontrol (1)Businesscombinationsinvolvingentitiesundercommoncontrol
For a business combination involving enterprises under common control, assets and liabilities that are obtained in a business
combinationismeasured atthecarryingamountoftheowners’equityof thepartybeingabsorbedintheconsolidatedfinancial
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statementsof theultimatecontrollingpartyatcombinationdate,exceptfortheadjustmentsof differentaccountingpolicies.The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination(ortotalparvalueof sharesissued)isadjustedtocapitalreserve,if thecapitalreserveisnotsufficienttoabsorbthe difference,anyexcessisadjustedagainstretainedearnings.
Businesscombinationsinvolvingentitiesundercommoncontrolachievedinstagesthatinvolvesmultipletransactions
In the separate financial statements, the initial investment cost is the absorbingparty’s share of the carrying amount of theowners’ equity of the party being absorbed in the consolidated financial statements of the ultimate controlling party at combinationdate.Thedifferencebetweeninitialinvestmentcostandoriginalinvestmentcarryingamountpriorcombinationplus newly paid consideration at the combination date is adjusted to capital reserve (share/capital premium), if the capital reserve is notsufficienttoabsorbthedifference,anyexcessisadjustedagainstretainedearnings.
In the consolidated financial statements, assets and liabilities that are obtained in a business combination are measured at their carrying amount of theowners’ equity of the party being absorbed in the consolidated financial statements of the ultimate controlling party at combination date, except for the adjustments of different accounting policies. The difference between the original investment carrying amount prior combination plus newly paid consideration at the combination date and the carrying amountof thenetassetsobtainedisadjustedtocapitalreserve(share/capitalpremium),if thecapitalreserveisnotsufficientto absorb the difference, any excess is adjusted against retained earnings. The long-term equity investment of the absorbing party prior to combination, profit or loss, other comprehensive income and changes of otherowners’ equityrecognized between the later of combination dateand thedatethat theabsorbing partyand theabsorbed party areunder commonultimatecontrol are offsettheopeningretainedearningsorprofitorlossforthecurrentperiodinthecomparativestatement.
(2)Businesscombinationinvolvingentitiesnotundercommoncontrol
Forbusiness combinationsinvolving entitiesnot undercommoncontrol,theconsiderationfor eachcombination ismeasured at theaggregateof thefairvalues,attheacquisitiondate,of assetsgiven,liabilitiesincurredorassumed,andequitysecuritiesissued by the acquirer in exchange for control of the acquiree. At the acquisition date, the acquired assets, liabilities and contingent liabilitiesof theacquireearemeasuredattheirfairvalue.
Where the cost of combination exceeds theacquirer’s interest in the fair value of theacquiree’s identifiable net assets, the difference is recognized as goodwill, and measured on the basis of its costs minus the accumulative impairment provisions. Where the cost of combination is less than theacquirer’s interest in the fair value of theacquiree’s identifiable net assets, the differenceisrecognizedinprofitorlossforthecurrentperiodafterreassessment.
Businesscombinationsinvolvingentitiesnotundercommoncontrolachievedinstagesthatinvolvesmultipletransactions. In the separate financial statements, the initial investment cost is the sum of the carrying amount of equity investment of the acquiree held prior to the acquisition date and the additional investment cost at the acquisition date. When the previously-held equity investment is accounted for under the equity method, any other comprehensive income previously recognized is not changedonthecombinationdateandisaccountedforonthesamebasisaswouldhavebeenrequiredif theinvesteehaddirectly disposed of the related assets or liabilities. Theowners’ equity recognized as the changes of theinvestee’s otherowners’ equity exceptfornetprofit orloss,othercomprehensiveincomeandprofit distributionaretransferredtoprofit orlossforthecurrent period when disposing the investment. For the previously-held equity investment which was accounted for using fair value, the accumulatedchangesinfair valueincludedinothercomprehensiveincomeistransferredtoprofit orloss for thecurrentperiod uponcommencementof thecostmethod.
Intheconsolidatedfinancialstatements,thecostofbusinesscombinationisthesumof theconsiderationpaidattheacquisition dateplusthefairvalueof equityinvestmentof theacquireeheldpriortotheacquisitiondate.Thecostof equityinvestmentof theacquireeheld prior totheacquisitiondateisre-measuredat thefair valueat theacquisition date,thedifference betweenthe fairvalueandcarryingvalueisrecognizedasprofit orlossfor thecurrentperiod.Othercomprehensiveincomeandchangesofotherowners’equityfromtheequityinterestheldintheacquirepriortotheacquisitiondatearetransferredtoprofit orlossfor the current period except for other comprehensive income due to the movement of net liabilities or assets in theinvestee’s re-measurementdefinedbenefitplan.
(3)Transactioncostsforbusinesscombination
Theintermediaryandotherrelevantadministrativeexpensessuchasaudit,legalandvaluationadvisoryforbusinesscombinations are recognized in profit or loss for the current year when incurred. Transaction costs of equity or debt securities issued as the considerationsof businesscombinationareincludedintheinitialrecognitionamounts.
6. Preparationof consolidatedfinancialstatements
(1) Thescopeof consolidatedfinancialstatements
Thescopeof consolidatedfinancialstatementsisdeterminedonthebasisof control.Controlexistswhentheinvestorhasallthe
following:powerovertheinvestee;exposure,orrightstovariablereturnsfromitsinvolvementwiththeinvestee;andtheabilityto
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use its power over the investee toaffect the amount of theinvestor’s returns.A subsidiary is an entity that is controlled bythe Company(suchasenterprises,deemedseparateentities,andstructuredentities).
(2) Basisof preparationof consolidatedfinancialstatements
The consolidated financial statements are prepared by the Company,based on the financial statements of the Company and its subsidiaries, according to other relevant information. The accounting policies and accounting periods of the subsidiaries is in accordance with those established by the Company, all significant intercompany accounts and transactions are eliminated on consolidation.
Whereasubsidiaryorbusinesshasbeenacquiredthroughabusinesscombinationinvolvingenterprisesundercommoncontrolin thereportingperiod, thesubsidiary and itsbusinessare included intheconsolidated financialstatementsfrom thedatetheyare controlled by the ultimate controlling party. Their operating results and cash flows are included in the consolidated income statementandconsolidatedcashflowstatementfromthedatetheyarecontrolledbytheultimatecontrollingparty.
Where a subsidiary or business has been acquired through a business combination not involving enterprises under common control, thesubsidiary’s or business income, expenses and profits are included in the consolidated income statement, and cash flowsareincludedintheconsolidatedcashflowstatementfromtheacquisitiondatetotheendof thereportingdate.
The portion of asubsidiary’s equity that is not attributable to the parent is treated as minority interests and presented in the consolidated balance sheet withinshareholders’ equity. That portion of net profit or loss of subsidiaries for the period attributabletominorityinterestsispresentedintheconsolidatedincomestatementbelowthe“netprofit”lineitemas“minority interests”. When the amount of loss for the current period attributable minority interests is more than minority interest in that subsidiaryatbeginningof theperiod,theminorityinterestisreversedbythebalanceof thelossof thesubsidiaryattributableto minorityinterests.
(3)Acquiringminorityshareholders’equity
The difference between the cost of long-term equity investment and net asset enjoyed which was calculated based on newly increasedequityholdingstartedfromthepurchasedateorcombinationdate,andthe differencebetweenconsiderationreceived for the disposal which did not result in losing control over the subsidiary,and net asset enjoyed whichwas calculated based on equity holding after disposal started from the purchase date or combination date, is adjusted to capital reserve. If the capital reserveisinsufficienttoabsorbthedifference,anyexcessisadjustedagainstretainedearnings.
(4) Losingcontroloverthesubsidiary
WhentheCompanylosescontroloversubsidiarybecauseof disposingpartof equityinvestmentorotherreasons,theremaining part of the equity investment is re-measured at fair value at the date when losing control over the subsidiary.A gain or loss is recognizedinprofitorlossandiscalculatedbytheaggregateof thefairvalueof considerationreceivedindisposalof theequity investment and the fair value of remaining part of the equity investment, and deduct the share of net assets in proportion to previousshareholdingpercentageinformersubsidiarysinceacquisitiondateandtherelatinggoodwillisderecognized.
Other comprehensiveincome related totheformersubsidiary’s equityinvestment istransferred to profit or loss for the current period of disposal, except for other comprehensive income due to the movement of net liabilities or assets in thesubsidiary’s re-measurementdefinedbenefitplan.
(5) Disposingequityinvestmentbystagesuntillosingcontrol
a. Determining whether those transactions in disposing equity investment until losing control step by step belong to “a basket transaction;
b.If thosetransactionsbelong toabasket transaction,choosetheaccounting treatment method for consolidated andindividual financialstatements;
c. If those transactions do not belong to a basket transaction, choose the accounting treatment method for consolidated and individualfinancialstatements.
Multipletransactionsresultinginalossof controlareconsideredasasingletransaction,whenanyof thefollowingconditionsis satisfied:
① Thetransactionsareenteredintoatthesametimeorincontemplationof eachother;
② Thetransactionsformasingletransactiondesignedtoachieveanoverallcommercialeffect;
③ Theoccurrenceof onetransactionisdependentontheoccurrenceof atleastoneothertransaction;
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④ One transaction considered on its own is not economically justified, but it is economically justified when considered togetherwithothertransactions
If multiple transactions by disposing equity investment by stages until losing control do not belong to a basket transaction in individual financial statements, the carrying amount of long-term equity investments related to each disposal of equity is derecognizedinthe separatefinancialstatements,thedifferencebetweentheconsiderationreceived andthe carryingamount of disposedlong-termequityinvestmentsisrecognizedasinvestmentincome.
In the consolidated financial statements, for disposing equity investment by stages until losing control step by step, the measurementof remainingequityandaccountingforprofitorlossof disposingequityrefertotheabove“(3)Losingcontrolover theinvestee”.Thedifferencebetweeneachconsiderationreceivedandtheshareofthesubsidiary’sequitycalculatedconsecutively sincethepurchasedaterelatedtodisposinginvestmentbeforelosingcontrolisaccountedforusingfollowingprincipal:①Belong to “a basket transaction”, is recognized as other comprehensive income and is transferred to profit or loss for the currentperiodwhenlosingcontrol.
②Not belong to “a basket transaction”, is recognized in capital reserve as an equity transactions-and does not allowed to be transferredtoprofitorlossforthecurrentperiodwhenlosingcontrol.
7. Jointarrangement
Ajointarrangementisanarrangementof whichtwoormorepartieshavejointcontrol.TheGroupclassifiesjointarrangements intojointoperationsandjointventures.
(1)Jointoperations
A joint operation is a joint arrangement whereby the joint operators have rights to the assets, and obligations for the liabilities, relatingtothearrangement.
The Group shall recognize the following items in the relation to its interest in a joint operation, and account for them in accordancewithrelevantaccountingstandards:
A.itssolely-heldassets,anditsshareof anyliabilitiesincurredjointly;
B.itssole-assumedliabilities,anditsshareof anyliabilitiesincurredjointly;
C.itsrevenuefromthesaleof itsshareof theoutputarisingfromthejointoperation;
D.itsshareof therevenuefromthesaleof theoutputbythejointoperation;and
E.itssole-incurredexpenses,anditsshareof anyexpensesincurredjointly.
(2)Jointventures
Ajointventureisajointarrangementwherebythejointventureshaverightstothenetassetsof thearrangement.
TheGroupadoptsequitymethodunderlong-termequityinvestmentinaccountingforitsinvestmentinjointventure.
8. Cashandcashequivalents
Cashcomprisescashon hand and deposits that can bereadily drawnondemand.Cashequivalents areshort-term, highlyliquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
9. Foreigncurrencytransactionsandtranslationof foreigncurrencystatement
(1) Foreigncurrencytransactions
Foreigncurrency transactionsare translated intothe functionalcurrency of theCompany,using theexchange rates prevailing at thedatesof thetransactions(spotexchangerate)
As at the balance sheet date, monetary items denominated in foreign currency are exchanged to Renminbi by adopting the prevailing exchange rate on that date. Foreign exchange difference arising from the difference between the prevailing exchange rateon that date and the prevailing exchange rate on initial recognition or on the previous balance sheet date are recognized in
profitorlossforthecurrentperiod.Non-monetaryitemsdenominatedinforeigncurrencythataremeasuredathistoricalcostare
still measured at amount denominated in reporting currency exchanged at the prevailing exchange rate at the transaction date.
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Non-monetaryitemsdenominatedinforeigncurrencythataremeasuredatfairvaluearetranslatedusingtheexchangerateatthe date when fair value was determined and the difference between the translated functional currency amount and the prevailing exchangerateoninitialrecognitionoronthepreviousbalancesheetdatearerecognizedinprofitorlossforthecurrentperiod. (2) Translationof foreigncurrencyfinancialstatements
At the balance sheet date, when translating the foreign currency financial statements of overseas subsidiaries, the assets and liabilities of the balance sheet are translated to RMB using the spot exchange rate at the balance sheet date; Items of theshareholders’equity,except for"undistributed profits",aretranslatedat thespot exchangerateatthedatesonwhichsuchitems arose.
Therevenueandexpensesintheincomestatementaretranslatedusingtheaverageexchangeratefortheperiod.
All items of the cash flow statement are translated using the average exchange rate for the period. As an adjustment item, the impact of exchange rate changes on cash amount is reflected separately in the cash flow as " Effect of foreign exchange rate changesoncashandcashequivalents".
Differencesarisingfromthetranslationof financialstatementsareseparatelypresentedasthe“othercomprehensiveincome”intheshareholders’equityof thebalancesheet.
When the control on foreign operation is lost due to disposal, exchange differences of foreign currency financial statementsattributabletotheforeignoperationaspresented[undershareholder’sequityitem]inthebalancesheetaretransferredtoprofitor lossforthecurrentperiodentirelyorpartiallyondisposedportion.
10. Financialinstruments
Financialinstrumentsrefer tothecontractsof formingenterprisefinancialassetsand otherentities’financialliabilities or equity instruments.
(1)Recognitionandderecognitionof financialinstruments
AfinancialassetorfinancialliabilityisrecognizedwhentheCompanybecomesonepartyof financialinstrumentcontracts. If oneof thefollowingconditionsismet,thefinancialassetsareterminated:
① Therightof thecontracttoreceivethecashflowsof financialassetsterminates;
② Thefinancialassethasbeentransferred,andisinaccordancewiththefollowingconditionsforde-recognition.
Whileprevailingobligationsof financialliabilityisrelievedentirelyorpartially,thefinancialliabilityisderecognizedaccordingly.If theCompany(borrower)makesanagreementwiththelendertoreplacetheoriginalfinancialliabilitybyassuminganewfinancial liability which contract terms are different substantially, the original financial liability is extinguished and the new financial liabilityisrecognized.
Conventionallytradedfinancialassetsarerecognizedandde-recognizedontradedate
(2)Classificationandmeasurementof financialassets
Financial assets are, upon initial recognition, classified into the following four categories: financial assets at fair value through profit or loss (“FVTPL” financial assets), held-to-maturity investments, loans and receivables, and available-for-sale financial assets (“AFS” financial assets). Financial assets are initially recognized at fair value. In the case of financial assets at fair value through profit or loss (“FVTPL” financial assets), the related transaction costs are recognized in profit or loss for the current period.Forotherfinancialassets,transactioncoststhatareattributabletotheacquisitionof thefinancialassetsareincludedinthe initialrecognitionamounts.
Financial assets at fair value through profit or loss include financial assets held for trading and those designated upon initial recognitionasatfairvaluethroughprofitorloss.Thiskindof financialassetsaresubsequentlymeasuredatfairvalue,allrealized andunrealizedgainsandlossesarerecognizedinprofitorlossforthecurrentperiod.
Held-to-maturityinvestments
Held-to-maturityinvestmentsarenon-derivativefinancialassetswithfixedordeterminablepaymentsandfixedmaturitydatesthat theCompanyhas thepositiveintentionand abilitytohold tomaturity.Held-to-maturityinvestmentsare subsequentlymeasured atamortizedcost usingtheeffectiveinterestmethod;gainsandlossesarisingfromderecognition,impairmentoramortizationis recognizedinprofitorlossforthecurrentperiod.
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Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market includingaccountreceivablesandotherreceivables(NoteIII.12).Receivablesaresubsequentlymeasuredatamortizedcostusing theeffectiveinterest method;gains and losses arising from derecognition,impairment or amortization is recognized in profit or lossforthecurrentperiod.
Available-for-salefinancialassets(AFSfinancialassets)
AFSfinancialassetsare thosenon-derivativefinancial assetsthat aredesignated asavailable forsale and thosefinancialassetsin addition to those above mentioned. AFS financial assets are subsequently measured at fair value, the discount or premium are amortizedusingtheeffectiveinterestmethodandrecognizedasinterestincome.Thegainsandlossesarisingfromchangesinfair valueof AFSfinancialassets(otherthanimpairmentlossesandforeignexchangegainsandlossesresultedfromforeigncurrency monetary assets which are recognized in profit or loss for the current period) are recognized as other comprehensive income, untilthefinancialassetsare derecognized,aretransferred toprofit or lossfor thecurrentperiod.Interest income anddividends relatedtotheAFSfinancialassetsarerecognizedasprofitorlossforthecurrentperiod.
Equity instrument investment with no quoted price in active markets and with not reliably measured fair value, and derivative financialassetsfortheequityinstrumentandsettledbypayingtheequityinstrumentaremeasuredatcost.
(3)Classificationandmeasurementof financialliabilities
Oninitialrecognition,financialliabilitiesareclassifiedas:financialliabilitiesatfairvaluethroughprofitorloss(FVTPL)orother financial liabilities. For financial liabilities not classified as at fair value through profit or loss financial liabilities, the transaction costsarerecognizedintheinitiallyrecognitionamounts.
FinancialliabilitiesatFVTPL
Financialliabilitiesat FVTPL includefinancialliabilities held for tradeand financial liabilities designated asat fair valuethrough profitorlossintheinitialrecognition.Suchfinancialliabilitiesaresubsequentlymeasuredatfairvalue,allrealizedandunrealized gainsandlossesarisingfromchangeinfairvaluearerecognizedinprofitorlossforthecurrentperiod.
Otherfinancialliabilities
Derivativefinancialliabilitieswhicharelinkedtoequityinstrumentthatisnotquotedinanactivemarketanditsfairvaluecannot bereliablymeasured and settled bydeliveringtheequityinstrument aresubsequently measured at cost. Other financialliabilities are subsequently measured at amortized cost using the effectiveinterest method.Gains and losses arising from derecognition or amortizationisrecognizedinprofitorlossforthecurrentperiod.
(4)Derivativefinancialinstrumentsandembeddedderivativeinstruments
Derivativefinancialinstrumentsof theGroupareinitiallymeasuredatthefairvalueof thedateaderivativecontractenteredinto andsubsequentlymeasuredattheirfairvalue.Derivativefinancialinstrumentsof positivefairvaluearerecognizedasassets;those of negative fair value are recognized as liabilities. Any gains or losses arising from changes in fair value which do not meet the requirementsof hedgeaccountingaredirectlyrecognizedtoprofitorlossforthecurrentperiod.
Forhybridinstrumentwithembeddedderivative,wherefinancialassetsorliabilitiesnotdesignatedasfairvaluethroughprofitor loss,theeconomicfeaturesandrisksof theembeddedderivativearenotcloselyrelatedtothatof thehostcontract,andasimilar instrumentwiththesametermsastheembeddedderivativewouldmeetthedefinitionof aderivative,thenembeddedderivativeis separatedfromhybridinstrumentandaccountedforasaderivative.If embeddedderivativeisunabletomeasureseparatelyeither atacquisitionor subsequently atbalance sheetdate,hybridinstrument asawhole isdesignatedasfinancialassetsor liabilities at fairvaluethroughprofitorloss.
(5)Fairvalueof financialinstruments
Determinationof fairvalueof financialassetsandfinancialliabilitiesreferstoNoteIII.11.
(6)Impairmentof financialassets
TheCompany assesses thecarrying amount of financial assets at eachbalance sheet dateother thanthose at fair valuethrough profitorloss,if thereisobjectiveevidencethatfinancialassetsareimpaired,theCompanydeterminestheamountof impairment loss.Objectiveevidence of impairment of financial assets are the matters that occurred after the initial recognition of financial assetswhichhasimpactontheexpectedfuturecashflowsof financialassets,andcanbereliablymeasuredbytheCompany.
TObjectiveevidencethatthefinancialassetsareimpairedincludingthefollowingobservablesituations:
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1 Theissuerordebtorhasseverefinancialdifficulties;
2 Thedebtorhasviolatedtermsof thecontract,suchasthepaymentof theinterestorprincipalisdefaultoroverdue; 3 TheCompanymadeconcessionstodebtorsinfinancialdifficultiesbasedoneconomicorlegalfactors;
4 Thedebtorhasprobablybankruptcyorotherfinancialreorganization;
5Theissuerhassoseverefinancialdifficultiesthatfinancialassetscan’tcontinuetobetradedinanactivemarket;
6 Thecashflowof individualassetinagroupof financialassetscannotbeevaluatedforreduction,whileafterevaluatingthe whole group of financial assets based on disclosed information, the expected future cash flow of the group of financial assetsismeasureableandhasbeenreducedsinceitsinitialrecognition,includingthat:
-repaymentcapabilityof thedebtorof groupof financialassetsgraduallydeteriorates;
-economicdifficultiesof thecountryorregionwherethedebtorisstayingappearasituationwherethisgroupof financial assetscannotbepaid;
7 Significant adverse changes in the technological, market, economic or legal environment in which the issuer operates, indicatingthatthecostof theinvestmentintheequityinstrumentmaynotberecoveredbytheinvestor;
8 Significantorprolongeddeclineinthefairvalueof investmentinequityinstruments,suchasthefairvalueof investmentinequityinstrumentsislessthan50%(50%inclusive)of theinitialinvestmentcost orinthecasethatthefair valuehasbeen lessthantheinitialinvestmentcostformorethan12months(12monthsinclusive).
Fairvaluelessthantheinitialinvestmentcostformorethan12months(12monthsinclusive)isbeingthemonthlyaveragefairvalue of theinvestmentinequityinstrumentslessthantheinitialinvestmentcostforconsecutive12months.
9 Otherobjectiveevidencesindicatethatfinancialassetshavebeenimpaired.
Financialassetmeasuredatamortizedcost.
Ifthere’sobjectiveevidencethatthefinancialassetsareimpaired,thenthecarryingamountof financialassetsarereducedtothe presentvalueof estimatedfuturecashflows(excludingfuturecreditlossesthathavenotbeenincurred),withthereducedamount recognized to profit or loss for the current period. The present value of estimated futurecash flows iscarried accordingto the financialasset'soriginaleffectiveinterestrate,andconsidersthevalueof collateral.
For a financial asset that is individually significant, the Company assesses the asset individually for impairment, if there is objectiveevidencethatithasbeenimpaired,impairmentlossisrecognizedinprofitorlossforthecurrentperiod.Forafinancial assetthat isnotindividuallysignificant,theCompanyassessestheassetbyincludingtheassetinagroupof financialassetswith similarcreditriskcharacteristicsandcollectivelyassessthemforimpairment.Foranindividuallyassessedfinancialasset(whether thefinancialassetisindividuallysignificantornotindividuallysignificant),theCompanyincludestheassetinagroupof financial assets with similar credit risk characteristics and collectively assessment for impairment. Asset for which an impairment loss is individuallyrecognizedisnotincludedinacollectiveassessmentof impairment.
If,after animpairmentloss hasbeen recognizedonfinancialassetsmeasuredat amortizedcost, thereis objectiveevidenceof a recovery in value of the financial asset which can be related objectively to an event occurring after the impairment was recognized,thepreviouslyrecognizedimpairmentlossisreversedthroughprofitorloss.Areversalof animpairmentlosswillnotresultintheasset’scarryingamountexceedingthatwhichwouldhavebeendeterminedhadnoimpairmentloss beenrecognized inprioryears.
Available-for-salefinancialassets
If thereisobjectiveevidence thatAFSfinancialassetsare impaired,accumulated lossesduetodecreasesinfair valuepreviously recognizeddirectlyinothercomprehensiveincomearereversedandchargedtoprofitorlossforthecurrentperiod.Thereversed accumulatedlossesaretheasset'sinitialacquisitioncostsafterdeductingamountsrecoveredandamortized,currentfairvalueand impairmentlossespreviouslyrecognizedinprofitorloss.
If, in a subsequent period, the fair value of financial assets increases and the increase can be related objectively to an event occurringaftertheimpairmentwasrecognized,thepreviouslyrecognizedimpairmentlossesarereversedandchargedtoprofitor lossforthecurrentperiod.Theimpairmentlossesof AFSequityinstrumentsarenotreversedthroughprofitorloss.
Financialassetsmeasuredatcost
If thereis objectiveevidence that the financial assets are impaired,the difference betweenthe carrying amount and the present
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valuediscountedatthemarketrateof returnonfuturecashflowsof thesimilarfinancialassetsberecognizedasimpairmentloss inprofitorlossinthecurrentperiod .Theimpairmentlossrecognizedshallnolongerbereversed.
(7)Transferof financialassets
Transfer of financial assets refers to the transference or deliverance of financial assets to the other party (the transferee) other thantheissuerof financialassets.
TheGroupderecognizesafinancialassetif ittransferssubstantiallyalltherisksandrewardsof ownershipof thefinancialasset tothetransferee.If substantiallyalltherisksandrewardsof ownershipof thefinancialassetisretained,thefinancialassetisnot derecognized.
TheGroupneither transfers nor retainssubstantiallyall therisks and rewardsof ownership of financialassets,thenaccounting forthefollowingcircumstances:if controloverthefinancialassetsissurrendered,derecognizethefinancialassetsandrecognize any assets and liabilities arose; if the Company retains the control of the financial assets, recognize the financial assets to the extentof thecontinuinginvolvementinthetransferredfinancialassetsbytheCompanyandrecognizeanyrelatingliability (8)Offsetbetweenfinancialassetsandfinancialliabilities
Financialassetsandliabilitiesareoffsetandthenetamountreportedinthebalancesheetwhenthereisalegallyenforceableright to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Otherwise, financial assets and financial liabilities are separately shown in the balance sheet and not allowed to offset.
11. Fairvaluemeasurement
Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarket participantsatthemeasurementdate.
The Group measures the related assets or liabilities at fair value assuming the assets or liabilities are exchanged in an orderly transactionintheprincipalmarketor,intheabsenceof aprincipalmarket,inthemostadvantageousmarket.
Forfinancialassetsorfinancialliabilitiesinactivemarkets,theGroupusesthequotedpricesinactivemarketsastheir fairvalue. Otherwise,theGroupusesvaluationtechniquetodeterminetheirfairvalue.
Afair valuemeasurement ofanon-financialassettakesintoaccountamarketparticipant’sabilitytogenerateeconomicbenefits byusing theassetinitshighest andbest useor bysellingit toanother marketparticipantthat wouldusetheassetinitshighest andbestuse.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measurefairvalue,maximizingtheuseof relevantobservableinputsandif theobservableinputsarenotavailableorimpractical, thenunobservableinputsareused.
Forassetsandliabilitiesmeasuredordisclosedatfairvalueinthefinancialstatements,thelevelinwhichfairvaluemeasurementis categorizedisdeterminedbythelevelof thefairvaluehierarchyof thelowestlevelinputthatissignificanttotheentirefairvalue measurement: Level1 inputs are quoted prices (unadjusted) in activemarketsfor identical assets or liabilities that the entity can accessatthemeasurementdate;Level2inputsareinputsotherthanquotedpricesincludedwithinLevel1thatareobservablefor theassetorliability,eitherdirectlyorindirectly;andLevel3inputsareunobservableinputsfortheassetorliability.
AteachbalancesheetdatetheGroupevaluatesforassetsandliabilitiesthataremeasuredatfairvalueonarecurringbasissoasto determineanytransferbetweenfairvaluehierarchyisnecessary.
12. Receivables
Receivablesincludeaccountsreceivableandotherreceivables.
(1) Individuallysignificantreceivableandprovisionforbadanddoubtfuldebtsindividually
Criteria of individually significant receivables: the carrying amount of accounts receivables of over RMB 800,000.00 (inclusive) andotherreceivablesof overRMB500,000.00(inclusive)arerecognizedasindividuallysignificantreceivable.
Method for individually significant receivables for which separate bad and doubtful provision is made: Receivables that are individuallysignificantaresubjecttoseparateimpairmentassessment,if thereisobjectiveevidenceof impairment,provisionfor badanddoubtfuldebtsisrecognizedontheshortfallbetweenthepresentvalueof futurecashflowsandthecarryingamount.
Individually insignificant accounts, for which there is no objective evidence under individual impairment tests warranting
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individualprovision,aredividedintodifferentassetgroupforre-assessmentof badanddoubtfuldebts.
(2) Individuallyinsignificantreceivablesbutprovisionforbadanddoubtfuldebtsindividually.
Litigationreceivables,deteriorationofcustomercreditreceivables;receivablesthat Reasonsforprovisionindividually
thereisobviousindicationthattheamountislikelyun-collectible.
Recognizetheprovisionforbadanddoubtfuldebtsontheshortfallbetweenthe Methodofprovision
presentvalueoffuturecashflowsandthecarryingamount.
(3)Receivableswithprovisionforbadanddoubtfuldebtscollectively.
For individually insignificant receivables, and individually insignificant receivables which are not impaired in individual test, provisionforbadanddoubtfuldebtsisrecognizedaccordingtothefollowingcreditriskcombination
Methodofprovisionforbad Typeofgroup Basisofgroup anddoubtfuldebts collectively Groupof ageing Ageingstate Ageinganalysismethod Receivablessuchasemployeepettycashreceivables,accounts
receivableduefromsubsidiariesincludedinconsolidation
No need for bad debt Specificfundportfolio scope,accountsreceivableforthesalesbetweenthelastdate
provision
ofsettlementwithdepartmentstoreandthedateofbalance
sheet
A. Forgroupof aging,therateof provisionforbadanddoubtfuldebtsinageinganalysismethodisasfollows:
Percentageofprovisionfor Percentageofprovisionforother Aging
accountsreceivable% receivables%
Within1year(including1year) 5 5
1to2years 10 10
2to3years 30 30
Over3years 50 50
B. Forothergroups,thedescriptionof provisionforbadanddoubtfuldebtsinothermethodsareasfollows:
Nameofgroup Descriptionofprovisionmethod
No bad debt provision is recognized as the risk of Portfolioof specificaccounts impairment does not exist according to its credit risk characteristics
Basedonhistoricalexperience,theGroup’sreceivablesduefrom pettycashpaidtoemployees,receivablesduefromsubsidiaries of the Companyand accounts receivablefor thesales betweenthelast settlement dateof thesame departmentstore and the balance sheet dateare with highrecoverabilityand low possibility of incurring bad debt,as a result, nobad debt provisions are providedforsuchreceivables.
13. Inventories
(1) Classification
Inventorymainlyincludesrawmaterial,work-in-processandfinishedgoods.
(2) Determinationof cost
Inventoriesaremeasuredattheactualcostwhenacquired.Costsofrawmaterials,workinprogress,finishedgoodsarecalculated in first-in-first-out method (for raw material and work in progress of FIYTA watches) , weighted average cost method (for finished goods of FIYTA watches) and specific identification method (for finishedgoodsofbrandedwatches)whenissued.
(3) Recognitionof thenetrealizablevalueandprovisionfordeclineinvalueof inventories
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Netrealizablevalue(“NRV”)istheestimatedsellingprice deducting estimated coststobeincurredupon completion,estimated sellingexpensesandrelatedtaxes.Whendeterminingthenetrealizablevalueof inventory,basisisrelied ontheactualevidences obtainedwhiletheobjectivesof inventoriesholdingandtheimpactof postbalancesheetdateeventarealsoconsidered:①theNRVof inventoriesthat are available for sale suchas finishedgoods and materials heldfor trading are determinedusing theestimatedsellingpricelessestimatedsellingexpensesandrelatedtaxesif thebusinessisintheordinarycourseof operation;②the NRV of materials that need to be processed are determined using estimated selling price of finished goods which is manufacturedfrom themateriallessestimatedcostof completion,estimatedsellingexpensesandrelatedtaxesif thebusinessis intheordinarycourseof operation.
TheCompanyrecognizesinventoryimpairmentprovisionforFIYTAbrandwatchesbasedonmodelscategory.
Impairmentprovisionsforbrandedwatchesarerecognizedonanitem-by-itembasis.
Impairment provisions for raw materials of FIYTA watches are recognized by categories based on ultimate-customer selling status of FIYTA finished watches taking into considerations of the exchangeability of the spare parts and the special usage of materials.
If the cost of closing inventory of the Company exceeds its net realizable value at balance sheet date, provision for decline in value of inventories is recognized. The Company usually recognizes provision for decline in value of inventories by a single inventoryitem.If thefactorscausingtheinventorypreviouslywritten-downhavedisappeared,theprovisionfordeclineinvalue of inventoriespreviouslymadeisreversed.
(4) Inventorysystem
TheGroupadoptsperpetualinventorysystem
(5) Amortizationmethodof low-valueconsumablesandpackagingmaterial
TheGroupadoptsone-off amortizationmethodwhenlow-valueconsumablesandpackagingmaterialaretakenforuse. 14. Long-termequityinvestments
Long-term equity investments include equity investments where the Group has control of, or significant influence over, an investee, and equity investments in joint ventures. Where the Group can exercise significant influence over the investee, the investeeisanassociate.
(1)Recognitionof investmentcost
For a business combination involving enterprises under common control, the initial investment cost of the long-term equity investment is the absorbingparty’s share of the carrying amount of theowners’ equity of the party being absorbed in the consolidatedfinancialstatementsof theultimatecontrollingpartyatcombinationdate.Forabusinesscombinationnotinvolving enterprises under common control, the initial investment cost of a long-term equity investment acquired is the cost of acquisition.
Foralong-termequityinvestmentacquiredbypayingcash,theinitialinvestmentcostistheamountof cashhasbeenpaid.Fora long-term equity investment acquired by issuing equity securities, the initial investment cost is the fair value of the equity securitiesissued.
(2)Subsequentmeasurementandrecognitionof profitorloss
Where the Group is able to exercise control over an investee, the long-term equity investment is accounted for using the cost method;wheretheGrouphasinvestmentinassociatesandoperationventures,thelong-term equityinvestmentisaccountedfor usingtheequitymethod.
Forlong-termequityinvestmentwhichisaccountedforusingthecostmethod,investmentincomeisrecognizedinprofitorloss for thecurrent period as thecash dividendor profit announced and distributed,except for those cashdividend or profit which havealreadyincludedintheactualpaymentorconsiderationof offerwhentheinvestmentwasmade.
Forlong-termequityinvestmentwhichisaccountedforusingtheequitymethod,wheretheinitialinvestmentcostof along-termequityinvestmentexceedstheGroup’sinterestinthefairvaluesoftheinvestee’sidentifiablenetassets,noadjustmentismadeto the initial investment cost. Where the initial investment cost is less than theGroup’s interest in the fair values of theinvestee’s identifiablenetassets,thedifferenceischargedtoprofitorlossforthecurrentperiod,andthecarryingamountof thelong-term
equityinvestmentisadjustedaccordingly.
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NotestotheFinancialStatements
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Undertheequitymethod,theGrouprecognizesitsshareoftheinvestee’snetprofitorlosses,aswellasitsshareoftheinvestee’s other comprehensive income, as investment income or losses and other comprehensive income,and adjust the carrying amount of the investment accordingly.The carrying amount of the investment is reduced by the portion of any profit distributions or cash dividends declared by the investee that is attributable to the Group. TheGroup’s share of theinvestee’sowners’ equity changes, other than those arising from theinvestee’s net profit or loss, other comprehensive income or profit distribution, isrecognizedintheGroups’equity,andthecarryingamountof thelong-term equityinvestmentisadjustedaccordingly.Theshare oftheinvestee’snetprofitorlossforthecurrentperiodisrecognizedafteradjustingtheinvestee’snetprofitinaccordancewith theGroup’s accounting policies and accounting period based on the fair value of the identifiable assets when the investment is made.
WhentheGroupbecomescapableof exercisingsignificant influenceorjointcontrol(butnotsolecontrol)overaninvesteedue to additional investment or other reasons, the accounting is changed to the equity method and the initial investment cost is the sumof thefair valueof thepreviously-held equityinvestmentand additional investmentcost. Where thepreviously-held equity investmentis classified as available–for–sale financial assets,the defensesbetween thefair valueand carrying amount and the accumulatedchangesinfairvalueincludedinothercomprehensiveincomearetransferredtoprofitorlossforthecurrentperiod uponcommencementof theequitymethod.
WhentheGroupcannolongerexercisejointcontrolof orsignificantinfluenceoveraninvesteeduetopartialdisposalof equity investment or other reasons, the remaining equity investment is accounted for in accordance with Accounting Standard for Business Enterprises No.22- Recognition and Measurement of Financial Instruments and the difference between the fair value andthecarryingamountatthedateof thelossof jointcontrolorsignificantinfluenceischargedtoprofitorlossforthecurrent periods.Whenthepreviously-heldequityinvestmentisaccountedforundertheequitymethod,anyothercomprehensiveincome previouslyrecognizedareaccountedforonthesamebasisaswouldhavebeenrequiredif theGrouphaddirectlydisposedof the relatedassetsorliabilitiesforthecurrentperiodupondiscontinuationof theequitymethod;Othermovementofowner’sequity relatedtopreviously-heldequityinvestmentistransferredinprofitorlossforthecurrentperiod.
WhentheGroupcannolongerexercisecontroloveraninvesteeduetopartialdisposalof equityinvestmentorotherreasonsand theremainingequityinvestmentafterdisposalcanexercisejointcontrolof orsignificantinfluenceoveraninvestee,theremaining equityinvestment isaccountedfor underequitymethodandre-measuredbyequitymethodasif ithasbeenacquiredsincedate of acquisition. Where the remaining equity investment can no longer exercise joint control of or significant influence over an investee, the remaining equity investment is accounted for in accordance with Accounting Standard for Business Enterprises No.22-Recognization and Measurement of Financial Instruments and the difference between the fair value and the carrying amountatthedateof thelossof controlischargedtoprofitorlossforthecurrentperiod.
TheunrealizedprofitorlossfrominternaltransactionsenteredintobetweentheGroupanditsassociateorjointventureisoffset according to the shareholding percentage held by the Group and the remaining portion is recognized as investment income or loss.However, the unrealized loss from internal transactions entered into between the Group and its investee is not offset if it belongstoimpairmentlossfromassetstransferred.
For the long-term equity investments of associates and joint ventures held before January 1, 2007, if there exists equity investment debit balance related to the investment, recognize investment income or loss after deducting the equity investment debitbalanceintheoriginalstraight-linebasisovertheremainingperiod.
(3)Basisforrecognitionof jointcontrolorsignificantinfluenceoveraninvestee
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. In assessing whether an enterprise has joint control of an arrangement exists, the Group firstly assesses whether all the parties or a group of the parties control the arrangement collectively.When all the parties or a group of the parties must act together unanimously in directing the relevant activities, then all the parties or a group of the parties are regarded as having joint control of an arrangement. Then assess whether decisions about the relevant activities require the unanimous consent of those parties that control the arrangement collectively.Whenmorethanonecombinationof thepartiescancontrolanarrangementcollectively,jointcontroldoesnotexist. Protectiverightsof anypartyisnotconsideredwhendeterminingjointcontrol.
Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsof theinvesteebutisnotcontrolor joint control of those policies. When determining whether an investor can exercise significant influence over an investee, the effect of potential voting rights (for example, warrants, share options and convertible bonds) held by the investors or other partiesthatarecurrentlyexercisableorconvertiblebeconsidered.
When the Group, directly or indirectly through subsidiaries, owns more than20% (20% inclusive) but less than50% of the votingsharesof theinvestee,theGrouphas significantinfluence ontheinvesteeunlessthereisclear evidencetoshow thatthe Groupcannotparticipateinthebusinessandoperationdecisionsof theinvestee,andaccordinglycannotexerciseanysignificantinfluence.WhentheGroupownslessthan20%of thevotingsharesof theinvestee,theGrouphasnosignificant influenceon theinvesteeunlessthereisclear evidencetoshowthat theGroupcanparticipateinthebusinessandoperationdecisionsof the investee,andaccordinglycanexerciseasignificantinfluence.
(4)Methodof impairmenttestingandimpairmentprovision
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Forinvestmentofsubsidiaries,associatesandjointventures,refertoNoteIII.21fortheGroup’smethodof assetimpairment. 15. Investmentproperty
Investmentpropertyisapropertyheldtoearnrentalsorforcapitalappreciation.TheGroup’sinvestmentpropertyincludesland userightsandbuildingsleasedtootherparty,andlanduserightsheldforappreciation.
TheGroup’sinvestmentpropertyisinitiallymeasuredatacquisitioncost,andisdepreciatedoramortizedaccordingtothesame policyforfixedassetsorintangibleassets.
RefertoNoteIII.21forassetimpairmentmethodof investmentpropertysubsequentlymeasuredusingthecostmodel. Disposal consideration of sale, transfer, retirement or damage of investment property after deducting its carrying amount and relatedtaxesisrecognizedinprofitorlossforthecurrentperiod.
Usefulyears Annualdepreciation Category Residualrate%
(year) rate%
Plant&buildings 20-35 5 2.7-4.8
16. Fixedasset
(1)Recognitionof fixedassets
Fixed assets are tangible assets that are held for use in the production or supply of services, for rental to others, or for administrativepurposesandhaveusefullivesmorethanoneaccountingyear.
Afixedassetisrecognizedonlywhenitisprobablethateconomicbenefitsassociatedwiththeassetwillflowintotheenterprise andthecostof theassetcanbemeasuredreliably.
Afixedassetisinitiallymeasuredatactualcost.
(2)Depreciationmethods
The Groupuses the straight line method for depreciation. Fixed assets begin to be depreciated from the state of intended use, andceasedbeingdepreciatedwhenderecognizedorclassifiedasheldforsalenon-currentassets.Withoutconsideringimpairment provision, theGroup’s annual depreciation rates are shown as follows according to the category, expected useful lives and estimatednetresidualvaluesrates:
Usefulyears Annualdepreciation Category Residualrate%
(year) rates% 20-35 5 2.7-4.8
Plant&buildings
10 5-10 9-9.5
Machinery&equipment
5 5 19
Motorvehicles
5 5 19
Electronicequipment
5 5 19
Others
Among the above, depreciation rate of impaired fixed assets are determined after deduction of the cumulative amount of impairmentprovision.
(3)Forimpairmenttestandtheimpairmentprovisionof fixedasset,refertoNoteIII.21.
(4)The Groupconduct reviews totheuseful life,estimated net residual rateand depreciation method of fixedassetsat least at eachendof theaccountingyear.
Usefullivesof fixedassetsareadjustedif theyaredifferentwiththeinitialestimates.Estimatednetresidualvaluesareadjustedif theyaredifferentwiththeinitialestimates.
(5)Overhaulcosts
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Theoverhaul costs incurred in regular inspection of fixedassets are capitalized as cost of fixedassetsif there is clear evidence thatitmeetstherecognitioncriteriaof fixedassets.Itisrecognizedinprofitorlossforthecurrentperiodif itdoesnotmeetthe recognitioncriteriaof fixedassets.Depreciationcontinuesduringtheperiodof regularoverhaul.
17. Constructioninprogress
Constructioninprogressisrecognizedbasedontheactualconstructioncost,includingallexpendituresincurredforconstruction projects,capitalizedborrowingcostsfortheconstructioninprogressbeforeithasreachedtheworkingconditionforitsintended useandotherrelatedexpensesduringtheconstructionperiod.
Constructioninprogressistransferredtofixedassetswhentheassetisreadyforitsintendeduse.
Forprovisionforimpairmentof constructioninprogress,refertoNoteIII.21.
18. Borrowingcost
(1) Recognitionof borrowingcostcapitalization
Borrowingcosts arecapitalized whenthey are directlyattributable totheacquisition, construction or productionof a qualifying assetandincludedinthecostof relatedassets. Otherborrowingcostsarerecognizedasexpensesandrecordedinprofitorloss for the current period when incurred. Capitalization of such borrowing costs commenced only when all of the following conditionsaresatisfied:
①Expenditures for the asset are being incurred, capital expenditure includes the expenditure in the form of cash payment, transfer of non-cash assets or the interest bearing liabilities for the purpose of acquiring or constructing assets eligible for capitalization;
②Borrowingcostsarebeingincurred;
③Activities relating to the acquisition, construction or production of the asset that are necessary to prepare the asset for its intendeduseorsalehavecommenced.
(2) Capitalizationperiodof borrowingcosts
Capitalizationof suchborrowingcostsceaseswhenthequalifyingassetsbeing acquired,constructedorproducedbecomeready fortheirintendeduseorsale.Theborrowingcostincurredafterthatisrecognizedasanexpenseintheperiodinwhichtheyare incurredandincludedinprofitorlossforthecurrentperiod.
Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or production of a qualifying asset is interrupted abnormally and when the interruption is for a continuous period of more than 3 months. Borrowingcostscontinuestobecapitalizedduringthenormalsuspensionperiod.
(3)Capitalizationrateof borrowingcostsandcalculationof capitalizationamount
Forfundsborrowedforaspecificpurpose,theamountof interesttobecapitalizedistheactualinterestexpenseincurredonthat borrowing less any bank interest earned from depositing the borrowed funds before being used into banks or any investment income on the temporary investment of those funds. For funds borrowed for general purpose, the amount of interest to be capitalized on such borrowings is calculated by applying a capitalization rate to the weighted average of the excess amounts of cumulative expenditures on the asset over and above the amounts of specific-purpose borrowings. Capitalization rate is determinedascalculatingweightedaverageinterestrateof generalborrowings.
In the capitalization period, exchange differences of specific borrowings in foreign currency are fully capitalized. Exchange differencesof generalborrowingsinforeigncurrencyarerecognizedinprofitorlossforthecurrentperiod.
19. Intangibleassets
Intangibleassetsof theGroupincludelanduserights,softwaresystem,trademarkrightsetc.
Intangibleassetisinitiallymeasuredcostanditsusefullifeisdeterminedonacquisition.Anintangibleassetwithafiniteusefullife isamortizedbyamethodwhichcanreflecttheexpectedrealizationof economicbenefitsrelatedtotheassetsincetheintangible asset is available for use. When the expected realization of economic benefits cannot be reliably determined, intangible asset is amortizedunderstraight-linemethod.Anintangibleassetwithanindefiniteusefullifeisnotamortized.
Amortizationmethodsof anintangibleassetwithafiniteusefullifeareshownasfollows:
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FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
amortization
Category Useful life Note method
Landuseright 45-50 years straight-linemethod - Softwaresystem 5 years straight-linemethod - trademarkrights 5-10 years straight-linemethod - TheGroupreviewsthefiniteusefullifeof anintangibleassetandtheamortizationmethodattheendof eachfinancialyear.Any changeisaccountedforasachangeinaccountingestimate.
If an intangible asset is expected no longer in generating future economic benefits to the Group at the balance sheet date, the carryingamountof theassetischargedtoprofitorlossforthecurrentperiod.
RefertoNoteIII.21forimpairmentprovisionmethodforintangibleassets.
20. Researchanddevelopmentexpenditure
Expenditureonaninternalresearchanddevelopmentprojectisclassifiedintoexpenditureontheresearchphaseandexpenditure onthedevelopmentphase.
Expenditureontheresearchphaseisrecognizedinprofitorlosswhenincurred.
Expenditure on the development phase is capitalized only when the Group can satisfy all of the following conditions: it is technicalfeasiblethattheintangibleassetcanbeusedorsolduponcompletion;thereisintentiontocompletetheintangibleasset foruseorsale;theintangibleassetcangenerateeconomicbenefits,includingthereisevidencethattheproductsproducedusing the intangible asset has a market or the intangible asset itself has a market; if the intangible asset is for internal use, there is evidence that there is usage for the intangible asset; there is sufficient support in terms of technology, financial resources and otherresourcesinordertocompletethedevelopment of theintangibleasset,andthereiscapabilitytouseor selltheintangible asset; the expenses attributable to the development stage of the intangible asset can be measured reliably. Expenditure on the developmentphaseisrecordedinprofitorlossforthecurrentperiodif theaboveconditionsarenotmet.
Research and development projects of the Group will enter into the development phase when they meet the above conditions andpassthetechnicalfeasibilityandeconomicfeasibilitystudiesandnecessaryapprovalof theproject.
Capitalizedexpenditureonthedevelopmentphaseispresentedas“developmentcosts”inthebalancesheetandistransferredto intangibleassetswhentheprojectiscompletedtoitsintendeduse.
21. Impairmentof assets
The impairment of subsidiaries, associates and joint ventures in the long-term equity investments, investment property subsequently measured at cost model, fixed assets,construction in progress,intangible assets,goodwill and related facilities, etc. (excluding inventories, investment property measured at fair value model, deferred income tax assets and financial assets) are determinedasfollows:
Ateachbalance sheet date,theGroup determines whether theremaybeindication of impairment of the assets,if thereis any, theGroupwillestimatetherecoverableamountof theasset,andperformtestforimpairment.
Forgoodwill arising from abusiness combination, intangible assets withindefinite usefullife and theintangible assetsthat have notyetreadyforusearetestedforimpairmentannuallyregardlessof whethersuchindicationexists.
Therecoverable amount of an asset is determined bythe higher of the net amount after deducting the disposalcosts from theasset’sfairvalueandthepresentvalueoftheasset’sestimatedfuturecashflow.
If itisnotpossibletoestimatetherecoverableamountof theindividualasset,theGroupdeterminestherecoverableamountof the asset group to which the asset belongs. The identification of the asset group is based on whether the cash flow generated fromtheassetgroupisindependentof themajorcashinflowsfromotherassetsorassetgroups.
Whentheassetorassetgroup'srecoverableamountislowerthanitscarryingamount,theGroupreducesitscarryingamountto its recoverable amount, the reduced amount is included in profit or loss, while the provision for impairment of assets is recognized.
Fortestsof goodwillimpairment,thecarryingamountof goodwillarisingfromabusinesscombinationisallocatedreasonablyto therelevantassetgroupsincetheacquisitiondate.If thecarryingvalueof goodwillisunabletobeallocatedtoassetgroup,the carryingvalueof goodwillwillbeallocatedtoassetportfolio.Assetgrouporportfolioof assetgroupisassetgrouporportfolio
of assetgroupwhichcanbebenefitfromsynergiesof abusinesscombinationandisnotgreaterthanthereportablesegmentof
theGroup.
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Inimpairmenttesting,if indicationof impairmentexistsinassetgrouporportfolioof assetgroupcontainingallocatedgoodwill, impairmenttestisfirstconductedonassetgrouporportfolioof assetgroupthatdoesnotcontaingoodwill,andcorresponding recoverable amount is estimated and any impairment loss is recognized. Then asset group or portfolio of asset group containing goodwill is conducted impairment test by comparing its carrying amount and its recoverable amount. If the recoverableamountislessthanthecarryingamount,impairmentlossof goodwillisrecognized.
Onceimpairmentlossisrecognized,itcan’tbereversedinsubsequentaccountingperiods.
22. Long-termdeferredexpenses
Long-term deferred expenses are recorded at the actual cost, and amortized evenly over the expected benefit period. For the long-term deferred expensethat cannot benefit infutureaccounting period,their amortizedvalueisrecognized inprofit or loss forthecurrentperiod.
23. Employeebenefits
(1)Scopeof employeebenefits
Employeebenefitsrefer toallformsof consideration or compensationgivenbytheGroupinexchangefor servicerenderedby employees or for the termination of employment relationship. Employee benefits include short-term employee benefits,post-employmentbenefits,terminationbenefitsandotherlong-termemployeebenefits.BenefitsprovidedtotheGroup’sspouse, children,dependents,familymembersof deceasedemployees,orotherbeneficiariesarealsoemployeebenefits.
Accordingtoliquidityemployeebenefitsispresentedas“employeebenefitspayable”and“long-termemployeebenefitspayable” onthebalancesheet.
(2)Short-termemployeebenefit
The Group shall recognize employee wages or salaries incurred, bonus, social security contributions such as premiums or contributionsonmedicalinsurance,workinjuryinsuranceandmaternityinsuranceandhousingfundsasliabilitiesthroughprofit or loss or related cost of assets for the financial year in which the employees render the related services. If the liability is not expectedtobesettled whollybefore twelvemonthsafter theendof theannualreporting period inwhichtheemployeesrender therelatedservicesandhavesignificantfinancialeffects,itismeasuredatthediscountedamount.
(3)Post-employmentbenefits
Post-employment benefit plan includes defined contribution plans and defined benefit plans. Defined contribution plans are post-employmentbenefitplansunderwhichanentitypaysfixedcontributionsintoanescrowfundandwillhavenoobligationto payfurthercontributions.Definedbenefitplansarepost-employmentbenefitplansotherthandefinedcontributionplans. Definedcontributionplans
Definedcontributionplansincludeprimaryendowmentinsuranceandunemploymentinsurance.
The Group recognizes, in the accounting period in which an employee provides service, the contribution payable to a defined contributionplan asaliability,withacorresponding chargetotheprofit or loss for thecurrent period or thecost of arelevant asset.
For defined benefit plans, independent actuaries estimate the actuarial value at the balance sheet date to determine the cost of rendering welfare by using the Project Unit Credit method. The Group recognizes the following components of employee benefitscostarisingformdefinedbenefitplan:
① servicecost,comprisingcurrentservicecost,pastservicecostandanygainorlossonsettlement.Currentservicecostisthe increase in the present value of the defined benefit plan obligation resulting from employee service in the current period. Past service cost is the increase or decrease in thepresent value of the defined benefit plan obligation for employee service in prior periods,resultingfromaplanamendment.
② net interest onthe net defined benefit plan net liabilities or assets,including interest incomeon plan assets,interest cost on thedefinedbenefitplanobligationandinterestontheeffectof theassetceiling.
③ changesasaresultof re-measurementof thenetdefinedbenefitplanliabilitiesorassets.
Item①anditem② abovearerecognizedinprofitorlossforthecurrentperiodunlessanotherAccountingStandardrequiresor
permitstheinclusionof theemployeebenefit costsinthecost ofassets.Item③ isrecognizedinother comprehensiveincome
and is not reclassified to profit or loss in a subsequent period; however, the Group may transfer those amounts recognized in
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
othercomprehensiveincometootherequity.
(4)Terminationbenefits
Termination benefits provided by the Group to employees are recognized as an employee benefits liability and charge to the profitorlossforthecurrentperiod,attheearlierof thefollowingdates:WhentheGroupcannotunilaterallywithdrawtheoffer of termination benefits because of an employment termination plan or a curtailment proposal and when the Group recognizes costsorexpensesrelatedtoarestructuringthatinvolvesthepaymentof terminationbenefits.
Forearlyretirementarrangement,earlyretirementbenefitsareaccountedforterminationbenefits,inwhichthesalariesandsocial securitycontributionstobepaidtoandfortheearlyretiredemployeesfrom theoff-dutydatetothenormalretirement dateare chargedtotheprofitorlossforthecurrentperiod.Compensationsafterthenormalretirementdate(suchasformalendowment insurance)areaccountedforaspost-employmentbenefits.
(5)Otherlong-termemployeebenefits
Other long-term employeebenefits providedbytheGrouptothe employeessatisfied theconditionsfor classifying as adefined contribution plan, When the benefits satisfied a defined benefits plan, they are accounted for in accordance with the above requirementsrelatingtodefinedcontributionplan,butthemovementofnetliabilitiesorassetsintheinvestee’sre-measurement definedbenefitplaninthecostof relevantemployeebenefitsisrecognizedinprofitorlossforthecurrentperiodortherelevant costof assets.
24. Provisions
An obligation for additional losses of investees related to a contingency is recognized as a provision when all of the following conditionsaresatisfied:
(1) Theobligationisapresentobligationof theGroup;
(2) Itisprobablethatanoutflowof economicbenefitswillberequiredtosettletheobligation;
(3) Theamountof theobligationcanbemeasuredreliably.
Provisionsareinitiallymeasuredatthebestestimateof thepaymenttosettletheassociatedobligationsandconsidertherelevant risk,uncertaintyandtimevalueof money.If theimpactof timevalueof moneyissignificant,thebestestimateisdeterminedas its present value of future cash outflow. The Group reviews the carrying amount of provisions at the balance sheet date and adjuststhecarryingamounttoreflectthebestestimate.
If allorpart of theexpensesnecessaryforsettlingtheprovisionisexpectedtobecompensatedbyathirdparty,theamountof compensation is separately recognized as an asset when it is basically certain to be received. The recognized compensation amount notexceedthecarryingvalueof theprovision.
25. Revenue
(1)Generalprincipal
①Saleof goods
Revenuefromthesaleof goodsisrecognizedonlywhenallof thefollowingconditionsaresatisfied:theGrouphastransferred to the buyer the significant risks and rewards of ownership of the goods, the Group retains neither continuing managerial involvementnoreffectivecontroloverthegoodssold,andrelatedincomecanbemeasuredreliablyandtheeconomicbenefitsare likelytoflowtotheCompany,andtheassociatedcostscanbemeasuredreliably.
②Providingof services
Where the outcome of a transaction involving the providing of services can be estimated reliably, at the end of the period, revenueassociatedwiththetransactionisrecognizedusingthepercentageof completionmethod.
Thepercentageof completionof atransactioninvolvingtheprovidingof servicesisdeterminedaccordingtotheproportionof theservicesperformedtothetotalservicestobeperformed.
The outcome of a transaction involving the providing of services can be estimated reliably only when all of the following conditionscanbesatisfiedatthesametime:
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
A. Theamountof revenuecanbemeasuredreliably;
B. Theassociatedeconomicbenefitsarelikelytoflowintotheenterprise;
C. Thestageof completionof thetransactioncanbemeasuredreliably;
D. Thecostsincurredandtobeincurredinthetransactioncanbemeasuredreliably.
If the outcome of a transaction involving the providing of services can not be estimated reliably,the revenue of providing of servicesisrecognizedonlytotheextentof servicecostincurredthatisrecoverableprobably,andservicecostincurredischarged toprofitorlossforthecurrentperiod.If theservicecostincurredisnotexpectedtoberecoverable,norevenueisrecognized.③Transferof therighttouseassets
Revenue is recognized when the economic benefits associated with the transfer of the right to use assets can flow to the Companyandtheamountcanbemeasuredreliably.
④Interestincome
TheinterestincomeiscalculatedbasedonthetenureoftheGroup’smonetaryfundsusedbyothersandtheactualinterestrates used.
⑤Revenuefrompropertyleasing
Theamount of revenuefrompropertyleasing arerecognizedwhentherentalsarecollectedorevidenceof receiptof payments are obtained in accordance with the tenure (consider rental-free period, if any) and rental stated in the leasing contract or agreement.
(2)Detailedmethodof revenuerecognition
ThewatchessoldbytheGroupincludestwotypes,oneistheself-manufacturedFIYTAwatch,thesalesof whichismanagedby branchofficesandprovincial-levelsale sectionsbyregionsset upbySales Company,asubsidiary of theCompany.The other is brandwatches,thesalesof whicharecontrolledbyHARMONYCompany,asubsidiaryof theCompany,andtheCompanyact as agent Regarding to sales modes, a portion of the sales of self-manufactured FIYTA watches is sold through direct sales to customerandconsignmentsaleswhilemostof theself-manufacturedFIYTAwatchesandbrandwatchesaresoldundertwosales modes,namelyexclusiveshopandshop-in-shop.Detailedmethodof revenuerecognitionasfollows:
A. Directsalestothecustomers
Underdirectsalestothecustomersmode,theGroupdeliversproductstocustomersandrecognizessalesincomeaftercustomers inspectionandacceptance.
B. Exclusiveshop
Under exclusiveshop mode, the Group delivers products to customers and recognizes sales income after customers inspection, acceptanceandpay.
C. Shop-in-shop
Undershop-in-shopmode,theGroupdeliversproductstocustomers,salesstaff issuesnotestoretail customersand recognizes salesrevenueaftercustomersinspectionandacceptanceandthedepartmentstorecollectsthepaymentfromthecustomers. D. Consignmentsales
Under consignment sales mode, the Group receives the detail of the sales list from distributors and recognizes revenue while issuinginvoicetodistributors.
26. Governmentgrants
AgovernmentgrantisrecognizedonlywhentheGroupcancomplywiththeconditionsattachingtothegrantandtheGroupcan receivethegrant.
If agovernmentgrantisintheformof atransferof amonetaryasset,itismeasuredattheamountreceivedorreceivable.Where
thereisundoubtedevidencethattheGroupcancomplywiththeconditionsattachingtothegrantsandtheGroupwillreceivethe
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
grants, they are measured in accordance with the receivable amount; otherwise, they are measured according to the amount actuallyreceived.
A government grant related to an asset is a grant obtained by the Group used for purchase or construction, or formation the long-termassetsbyotherways.Otherwise,thegovernmentgrantistreatedasagovernmentgrantrelatedtoincome.
For government grant with unspecified purpose, the amount of grant used to form a long-term asset or related to an assets is regarded as government grant related to an asset, the remaining amount of grant is regarded as government grant related to income.If itisnotpossibletodistinguish,theamountof grantistreatedasgovernmentgrantrelatedtoincome.
Agovernment grant related toan assetis recognizedas deferred income,and evenly amortizedtoprofit or loss overthe useful lifeof therelatedasset.Foragovernment grantrelated toincome,if thegrantisacompensationforrelated expensesor losses alreadyincurred,the grant isrecognized immediately in profit or loss for the current period; if thegrant is acompensation for relatedexpensesorlossestobeincurredinsubsequentperiods,thegrantisrecognizedasdeferredincome,andthenrecognized inprofitorlossovertheperiodsinwhichthecostsarerecognized.Governmentgrantsmeasuredatnominalamountsaredirectly recognizedinprofitorlossfortheperiod.
Reversal of recognized government grant will be set off to the carrying value of relevant deferred income. Any excess of the reversaltothecarryingamountof deferredincomewillberecognizedinprofitorlossforthecurrentperiod.Incasethereisno relevantdeferredincome,reversalwillbedirectlyrecognizedinprofitorlossforthecurrentperiod.
27. Deferredtaxassetsanddeferredtaxliabilities
Incometaxcomprisesof currentincometaxanddeferredincometax.Currenttaxanddeferredtaxareincludedinprofitorloss for the current period as income tax, other than deferred tax related to transactions or events that are directly recognized inshareholders’equityanddeferredincometaxarisingfrombusinesscombinationshouldadjustthecarryingamountof goodwill. Temporary differences arising from the difference between the carrying amount of an asset or liability and its tax base are recognizedasdeferredtaxusingthebalancesheetliabilitymethod.
All the taxable temporary differences are recognized as deferred tax liabilities except for those incurred in the following transactions:
(1)Theinitialrecognitionof goodwill,andtheinitialrecognitionof anassetorliabilityinatransactionwhichisneitherabusiness combinationnoraffectsaccountingprofitortaxableprofit(ordeductibleloss)whenthetransactionoccurs;
(2)Thetaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,associatesandjointventures,andtheGroupis able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverseintheforeseeablefuture.
The Grouprecognizes a deferred tax asset for the carry forward of deductible temporary differences, deductible losses and tax credits to subsequent periods, to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences, deductible losses and tax credits can be utilized, except for those incurred in the following transactions:
(1)Thetransactionisneitherabusinesscombinationnoraffectsaccountingprofitortaxableprofit(ordeductibleloss)whenthe transactionoccurs;
(2) The deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, the corresponding deferred tax asset is recognized when both of the following conditions are satisfied: it is probable that the temporarydifferencewillreverseintheforeseeablefuture,itisprobablethattaxableprofitswillbeavailableinthefuture,against whichthetemporarydifferencecanbeutilized.
Atthebalancesheetdate,deferredtaxassetsanddeferredtaxliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplyto theperiodwhentheassetisrealizedortheliabilityissettled,andtheirtaxeffectisreflected.
Atthebalancesheetdate,theGroupreviewsthecarryingamountof adeferredtaxasset.If itisprobablethatsufficienttaxable profitswillnotbeavailableinfutureperiodstoallowthebenefitof thedeferredtaxassettobeutilized,thecarryingamountof the deferred tax asset is reduced. Any such reduction in amount is reversed when it becomes probable that sufficient taxable profitswillbeavailable.
28. Operatingleasesandfinanceleases
A finance lease is a lease that transfers in substance all the risks and rewardsincidental to ownership of an asset. An operating
leaseisaleaseotherthanafinancelease.
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
(1)Aslessor
Infinanceleases,atthebeginningdateof leaseperiod,theGroupwillrecognizethesumof minimumleasecollectionandinitial direct costs as the recorded value of finance leases receivable and meanwhile is recorded as unguaranteed residual value; the difference between the sum of minimum lease collection, initial direct costs and unguaranteed residual value and their present value is recorded as unrecognized financing charges. Unrecognized financing charges are measured at amortized cost using the effectiveinterestmethodintheperiodsof leasingandrecognizedinfinancingchargesforthecurrentperiod.
Rental receipt from operating leases is recognized in profit or loss on a straight-line basis over the lease term. The initial direct costsincurredarerecognizedinprofitorlossforthecurrentperiod.
(2) Aslessee
Infinanceleases,atthebeginningdateof leaseperiod,theGroupwillrecognizethelowerof thefairvalueof leasedassetof the beginning dateof leaseperiod and thepresent valueof minimumleasepayment astherecorded valueof the leasedasset,their difference isrecorded asunrecognized financing charges.Initial directcosts are recognized inleasedassets’value.Unrecognized financingchargesaremeasuredatamortizedcost usingtheeffectiveinterest methodintheperiodsof leasingandrecognizedin financing chargesfor thecurrent period.TheGroupdepreciatestheleased assetsbyadopting thedepreciationpolicy consistent withself-ownedfixedassets.
Rentalpaidforoperatingleasesisrecognizedinthecostof relevantassetsorprofitorlossonastraight-linebasisoverthelease term.Theinitialdirectcostsincurredarerecognizedinprofitorlossforthecurrentperiod
29. Criticalaccountingjudgmentsandestimates
TheGroupgivescontinuousassessmentof thereasonableexpectationsof futureeventsandthecriticalaccountingestimatesand keyassumptionsbasedonitshistoricalexperienceandotherfactors.
Thecriticalaccounting estimates and keyassumptions that arelikelytolead tosignificant adjustedrisks of thecarrying amount of assetsandliabilitiesforthenextfinancialyeararelistedasfollows:
(1) Bad debt provision
Theallowancemethod isadopted bytheGrouptoaccount for losseson baddebtsfor receivables.Impairment of receivable is madebasedonestimationof itsrecoverability,whichrequiresthemanagementtomakejudgmentsandestimates.Thedifference betweentheactualoutcomeandtheestimateswillhaveeffectsonthecarryingamountsof accountsreceivableandonprovision orreversalof theprovisionforbaddebtsof theaccountingperiodinwhichtheestimateswillbechanged.
(2)Impairment provision for non-current non-financial assets
At the balance sheet date, the Group judges whether there are indicators of impairment for non-current assets other than financialassets.Foranintangibleassetwithanindefiniteusefullifeexceptforannuallyimpairmenttest,animpairmenttestwillbe conductedif thereareanyindicatorsof impairmentoccur.Fornon-currentassetsotherthanfinancialassets,animpairmenttest ismadeif thereareevidencesindicatingthecarryingamountscannotberecoveredinfullamount.
Anassetorassetgroupisimpairedwhenitscarryingamountishigherthanitsrecoverableamount(i.e.thehigherof itsfairvalue lessthedisposalexpensesandthepresentvalueof theestimatedfuturecashflows).
Thenetamount of fair valueless thedisposal expensesare determinedwithreferencetothequotedpriceof similar assetsinasalesagreementinanarm’slengthtransactionoranobservablemarketpricelessincrementalcostsdirectlyattributabletodisposal of theasset.
Whenestimatingthepresentvalueof futurecashflows,significantjudgmentsareinvolvedtotheproductionoutput,sellingprice, relevantbusinesscostsof theasset (orassetgroup) andthediscountrateadoptedincalculatingthepresent value.Inestimating the recoverable amount, the Group will adopt all information available, such as forecasts for the production output, the selling priceandrelevantbusinesscosts,whicharemadeaccordingtoreasonableandsupportiveassumptions.
TheGroup conducts impairment test togoodwill at least once a year.This requires estimating the present value of futurecash flows of asset group or combination of asset group to which goodwill has been allocated. In estimating the present value of futurecashflows,theGroupneedsestimatefuturecashflowsgeneratedfromtheassetgrouporthecombinationof assetgroups andchooseappropriatediscountrates.
(3)Depreciation and amortization
Takingtheresidualvalueintoconsideration,aninvestmentproperty,fixedassetandintangibleassetaredepreciatedoramortized
onastraight-linebasisoveritsusefullife.TheGroupreviewstheusefullifeperiodicallytodeterminetheamountof depreciation
oramortizationwhichisrecognizedineachaccountingperiod.Theusefullifeisdeterminedaccordingtohistoricalexperienceof
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
similar assets and technological renovation estimated. The amount of depreciation or amortization is adjusted in future accountingperiodsif therearematerialchangesinestimatesmadebefore.
(4)Deferred income tax asset
Adeferredtaxasset isrecognizedfortheunuseddeductiblelossestotheextentthat itisprobablethatfuturetaxableprofitwill beavailableagainstwhichthedeductiblelossescanbeutilized.Takingthetaxationplanningintoconsideration,themanagement of theGroupisrequiredtomakesignificantamountof judgmentstoestimatethetimeandtheamountof futuretaxableprofit inordertodeterminetheamountof deferredincometaxassetstoberecognized.
(5)Corporate income tax
For some transactions in theGroup’s ordinary course of business, uncertainties exist in their tax treatment and calculation. An approvalfromthetaxauthorityisneededtodeterminewhether an itemisdeductiblebefore tax.If thefinalconfirmationfrom the tax authority differs with the original estimation, the difference will have effects on the current income tax and deferred incometaxof theperiodinwhichthefinalconfirmationismadebythetaxauthority.
(6)After-sale quality warranty
TheGroup has the obligation toprovide warrant tothe qualityof goods sold, and isresponsible for damages arising from the repairandreplacementduetodefectivegoods.TheGroupestimatesanddrawsrelatedprovisiononitsafter-salequalitywarranty commitmenttocustomerswithrespecttothegoodssold.Inthecasethatthecontingenteventbecomesacurrentobligationand performanceof thecurrentobligationmaybeverylikelytocauseeconomicbenefitflowoutof theGroup,theGrouprecognizes provision based on the best estimates to be spent for fulfilling the related current obligation. Otherwise, if the event does not become a current obligation, no predictions needed. In the course of judgment, the Group needs to consider the recent maintenancedatawhichmaynotbelikelytoreflectthefuturemaintenancesituations.Anyincreaseorreductionof theprovision maypossiblyaffecttheprofitorlossinthefutureyear.
30. Changesinsignificantaccountingpoliciesandaccountingestimates
(1)Changeof significantaccountingpolicies
Therewasnochangetosignificantaccountingpoliciesduringthereportingperiod.
(2)Changeof significantaccountingestimates
Therewasnochangetosignificantaccountingestimatesduringthereportingperiod.
IV.Taxation
1.Typesof taxesandtaxrates
Typeof taxes Taxbase Statutory taxrate% VAT Taxableincome 17 Consumptiontax Importorproducehigh-classwatches 20 Businesstax Taxableincome 5 Urbanmaintenanceandconstruction
Turnovertaxpayable 7 tax
Educationalsurcharges Turnovertaxpayable 3 Localeducationalsurcharges Turnovertaxpayable 2 Corporateincometax(note1) Taxableincome 15-30 Propertytax(note2) 70%of originalvalueof property,rentalincome 1.2, 12 (1)Corporateincometax
Nameof taxpayer Income taxrate%
TheCompany(Note①②) 25
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Nameof taxpayer Income taxrate%HARMONYCompany(Note①) 25ShenzhenFIYTAPrecisionTimerManufacturingCo.,Ltd.(ManufacturingCompany(Note②③) 15FIYTAHongKong(Note⑤) 16.5Station68(Note⑤) 16.5NatureArtLimited(Note⑤) 16.5WorldWatchesInternational(Note⑤) 16.5ShenzhenFIYTATechnologyDevelopmentCo.,Ltd(TechnologyCompany)(Note②④) 15ShenzhenXiangjiCommercial&TradeCo.,Ltd(TradingCompany)(Note⑥) 25 BeijingHengliandaWatchCenterCo.,Ltd(HengliandaCompany)(Note⑥) 25KunmingLishanDepartmentStoreCo.,Ltd.(LishanDepartmentStore)(Note⑥) 25 HarbinWorldWatchesDistributionCo.,Ltd.(HarbinCompany)(Note⑥) 25ShenzhenHarmonyCultureCommunicationCo.,Ltd(CultureCompany)(Note⑥) 25 EmileChoureitTiming(Shenzhen)Ltd.(EmileChoureitShenzhenCompany)(Note⑥) 25 FIYTASalesCo.,Ltd(SalesCompany)(Note①⑥) 25LiaoningHengdaruiCommercial&TradeCo.,Ltd(HengdaruiCompany)(Note⑥) 25SwissCompany(Note⑦) 30 Note①: According to the regulations stated in GuoShuiFa (2008) No. 28, “Interim Administration Method for Levy of CorporateIncomeTaxtoEnterprisethatOperatesCross-regionally”,theheadofficeof theCompanyanditsbranchoffices,the headofficeof HARMONYCompanyanditsbranchofficesadopttaxsubmissionmethodof “unifiedcalculation,managing by classes, pre-paid in its registered place, settlement in total, and adjustment by finance authorities” starting from 1 January 2008.50%issharedandprepaidbybranchesand50%isprepaidbytheheadquarters.
Note②:AccordingtoNoticeof “Pre-taxDeductionof EnterpriseResearchandDevelopmentExpenses (Interim)”,GuoShui FA(2008) No.116issued byStateAdministrationof Taxationon 10Dec.2008,researchand development expenses,whichare charged to profit or loss instead of being capitalized as intangible assets, that incurred by the Company and the Manufacture Company for developing new technology, new product and new technique can be deducted by50% extra on top of actual expensedchargedinprofitorloss.
Note③:The company enjoyed for “Reduction and Exemption in Corporate Income Tax Rate for High and New Technology EnterprisesthatRequireKeySupportfromtheState”.
Note④: According to ShenGuoShuiBao Xi GaoXinNian Du Bei (2014) No. 0027 “Notice to Acceptance of Annual InformationFilingof High-techEnterprises”issuedbyXixiangTaxSubBureauof NationalTaxationBureauof BaoanDistrict of Shenzhen,theCompanyenjoysthe“ReductionandExemptioninCorporateIncomeTaxRateforHighandNewTechnology EnterprisesthatRequireKeySupportfromtheState”.
Note⑤:ThesecompaniesareregisteredinHongKongandtheincometaxrateofHongKongapplicableis16.50%thisyear Note⑥: According to the People's Republic of China Enterprise Income Tax Law,the income tax rate is25% for residential enterprisessince1January2008.
Note⑦:Thetaxrateof30%isapplicableforSwissCompanyasitregisteredinSwitzerland.
(2)Propertytax
InaccordancewithArticle5of “NoticetoPublish“ReplytoIssuesRelatedtoPropertyTaxandVehicleandVesselUsageTax””,
Shen Di ShuiFa (1999) No.374 issued by Shenzhen Local Taxation Bureau, property leased out by manufacturing or business
entityaretaxedat1.2%onthebasesof70%of theoriginalcostof theproperty.
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Propertiesof theGroupthatsituatedinShenzhenaretaxedaccordingtothisnotice.Propertiessituatedinothercitiesaretaxed accordingtolocalregulations.
V. Notestomainitemsof consolidatedfinancialstatements
1. Cashatbankandonhand
31/12/2015 31/12/2014
Item
Foreign Exchange RMB Foreign Exchange RMB currency rate
equivalent
currency rate
equivalent Cashonhand: -- -- 387,241.40 -- -- 338,694.81 RMB -- -- 369,313.36 -- -- 323,007.58 USD 698.00 6.4936 4,532.53 698.00 6.1190 4,271.06 HKD 12,910.73 0.8378 10,816.55 11,252.83 0.7889 8,877.36 EUR 24.45 7.0952 173.48 24.45 7.4556 182.29 CHF 375.75 6.4018 2,405.48 375.75 6.2715 2,356.52 Bankdeposit: -- -- 636,995,113.67 -- -- 114,319,146.38 RMB -- -- 628,885,440.39 -- -- 96,108,985.12 USD 165,167.86 6.4936 1,072,534.45 196,091.57 6.1190 1,199,885.01 HKD 7,451,264.03 0.8378 6,242,664.82 13,272,713.21 0.7889 10,470,753.04 CHF 124,101.66 6.4018 794,474.01 1,042,736.70 6.2715 6,539,523.21 Othermonetaryfund: -- -- 1,580,520.86 -- -- 1,797,229.35 RMB -- -- 1,580,520.86 -- -- 1,797,229.35 Total 638,962,875.93 116,455,070.54 Amountof RMB1,575,000.00inothermonetaryfundsisthesecuritydepositwithShenzhenCenterBranchof AgriculturalBank of Chinaforissuingof irrevocableletterof guarantee.
2. Notesreceivable
Classification 31/12/2015 31/12/2014
Bankacceptancebills 5,697,788.08 5,162,768.29 Tradeacceptancebills 1,500,000.00 1,000,000.00 Total 7,197,788.08 6,162,768.29 (1)Thereisnopledgeof notesreceivableattheendof theperiod.
(2)Thereisnoendorsedordiscountednotesreceivablethatisnotyetdueattheendof theperiod.
(3)Thereisnonotesreceivabletransferredtoreceivablesduetoissuer’sdefaultattheendof theperiod.
3. Accountsreceivable
(1)Accountsreceivablesdisclosedbycategories:
Category 31/12/2015
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Amount
Percentage Provisionfor Provision
Netamount% baddebts rate%
Receivables that are individually
significant in amount and - - - - - providedforbaddebtseparately
Receivables provided for bad debt
byportfolio:
Including: Portfolio based on
138,760,245.46 44.39 7,856,219.86 5.66 130,904,025.60 agingofreceivables
Specificreceivables 173,821,650.69 55.61 - - 173,821,650.69 Subtotal 312,581,896.15 100.00 7,856,219.86 2.51 304,725,676.29 Receivables that are individually
insignificant in amount but - - - - - providedforbaddebtseparately
Total 312,581,896.15 100.00 7,856,219.86 2.51 304,725,676.29 Accountsreceivablesdisclosedbycategories(continued)
31/12/2014
Category
Amount
Percentage Provisionfor Provision
Netamount% baddebts rate%
Receivables that are individually
significantinamountandprovided - - - - - forbaddebtseparately
Receivables provided for bad debt
byportfolio:
Including: Portfolio based on
165,747,769.87 46.05 8,663,644.67 5.23 157,084,125.20 agingofreceivables
Specificreceivables 194,192,780.33 53.95 - - 194,192,780.33 Subtotal 359,940,550.20 100.00 8,663,644.67 2.41 351,276,905.53 Receivables that are individually
insignificant in amount but - - - - - providedforbaddebtseparately
Total 359,940,550.20 100.00 8,663,644.67 2.41 351,276,905.53 Note:
①Accountsreceivablethatareprovidedforbaddebtbasedonaginganalysisinagingportfolio:
31/12/2015
Aging
Provisionforbad
Amount Percentage% Provisionrate% Netamount debts
Within1year 131,175,022.16 94.53 6,586,786.79 5.00 124,588,235.37 1to2years 5,689,069.52 4.10 568,906.94 10.00 5,120,162.58 2to3years 1,237,753.78 0.89 371,326.13 30.00 866,427.65 Over3years 658,400.00 0.48 329,200.00 50.00 329,200.00 Total 138,760,245.46 100.00 7,856,219.86 5.66 130,904,025.60 (Continued)
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
31/12/2014
Aging
Provisionforbad
Amount Percentage% Provisionrate% Netamount debts
Within1year 162,924,972.23 98.30 8,146,248.60 5.00 154,778,723.63 1to2years 1,647,216.14 0.99 164,721.62 10.00 1,482,494.52 2to3years 1,175,581.50 0.71 352,674.45 30.00 822,907.05 Over3years - - - - - Total 165,747,769.87 100.00 8,663,644.67 5.23 157,084,125.20② Amongtheportfolio,accountsreceivablethatareprovidedforbaddebtusingothermethod
Nameofportfolio Carryingamount Baddebtprovision Provisionrate% Portfolioof specific
173,821,650.69 - - accounts
(2)Provisionandrecoveryof provisionwithinthisyear
The amount of Bad debt provision accrued is RMB54,831.98 in current period. There was no received bad debt provision in currentperiod.
(3)Actualwritten-off of accountsreceivablewithinthisyear
Item Written-off amounts
Accountsreceivableactuallywrittenoff 862,256.79 (4)Accountsreceivableduefromthetopfivedebtorsof theGroupareasfollows:
The closing balance of total accounts receivable due from the top fivedebtors of the Group is RMB24,938,417.27, accountingfor7.98%of thetotalaccountsreceivableasat31December2015andthecorrespondingprovisionfor badanddoubtfuldebts accruedasat31December2015isRMB1,246,920.86.
4. Prepayments
(1)Theageinganalysisof prepaymentsisasfollows:
31/12/2015 31/12/2014
Aging
Amount Percentage% Amount Percentage% Within1year 40,458,069.74 82.79 42,177,990.15 97.97 1to2years 7,684,834.45 15.73 225,856.85 0.52 2to3years 103,176.35 0.21 103,427.06 0.24 Over3years 623,483.06 1.27 547,368.00 1.27 Total 48,869,563.60 100.00 43,054,642.06 100.00 (2)Thetopfiveprepaymentsareasfollows:
Totalprepaymentsduefrom thetopfivedebtorsof theGroupasat31December2015isRMB25,528,143.71andaccountsfor52.24%of thetotalprepaymentsasat31December2015.
5. Otherreceivables
(1)Otherreceivablesdisclosedbycategories
Category 31/12/2015
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Amount
Percentage Provisionfor Provision
Netamount% baddebts rate%
Other receivables that are individually
significant in amount and provided
800,000.00 1.88 800,000.00 100.00 - forbaddebtseparately
Other receivables provided for bad
debtbyportfolio:
Including:Portfoliobasedonagingof
36,781,989.54 86.30 1,852,085.48 5.04 34,929,904.06 receivables
Specificotherreceivables 4,917,828.70 11.54 - - 4,917,828.7 Subtotal 41,699,818.24 97.84 1,852,085.48 4.44 39,847,732.76 Other receivables that are individually
insignificant in amount but provided
120,000.00 0.28 120,000.00 100.00 - forbaddebtseparately
Total 42,619,818.24 100.00 2,772,085.48 6.50 39,847,732.76 Otherreceivablesdisclosedbycategories(continued)
31/12/2014
Category
Amount
Percentage Provisionfor Provision
Netamount% baddebts rate%
Other receivables that are
individually significant in amount
- - - - - andprovidedforbaddebtseparately
Other receivables provided for bad
debtbyportfolio:
Including: Portfolio based on aging
33,466,574.93 75.29 2,803,647.28 8.38 30,662,927.65 ofreceivables
Specificotherreceivables 10,862,791.62 24.44 - - 10,862,791.62 Subtotal 44,329,366.55 99.73 2,803,647.28 6.32 41,525,719.27 Other receivables that are
individually insignificant in amount
120,000.00 0.27 120,000.00 100.00 - butprovidedforbaddebtseparately
Total 44,449,366.55 100.00 2,923,647.28 6.58 41,525,719.27 Note:
①Amongtheportfolio,otherreceivablesthatareprovidedforbaddebtbasedonaginganalysis：
31/12/2015
Aging
Provisionforbad
Amount Percentage% Provisionrate% Netamount debts
Within1year 36,738,589.54 99.88 1,836,929.48 5.00 34,901,660.06 1to2years 16,360.00 0.05 1,636.00 10.00 14,724.00 2to3years - - - - - Over3years 27,040.00 0.07 13,520.00 50.00 13,520.00 Total 36,781,989.54 100.00 1,852,085.48 5.04 34,929,904.06
(Continued)
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
31/12/2014
Aging
Provisionforbad
Amount Percentage% Provisionrate% Netamount debts
Within1year 27,670,158.67 82.68 1,383,509.74 5.00 26,286,648.93 1to2years 3,271,785.31 9.78 327,178.52 10.00 2,944,606.79 2to3years 846,782.30 2.53 254,034.69 30.00 592,747.61 Over3years 1,677,848.65 5.01 838,924.33 50.00 838,924.32 Total 33,466,574.93 100.00 2,803,647.28 8.38 30,662,927.65②Amongtheportfolio,otherreceivablesthatareprovidedforbaddebtusingothermethod:
Nameofportfolio Carryingamount Baddebtprovision Provisionrate% Portfolioofspecific
4,917,828.70 - - accounts
(2)Provisionandrecoveryof provisionwithinthisyear
The amount of bad debt provisions reversed is RMB151,561.80 in current period. There is no bad debt provisions received in currentperiod.
(3)Otherreceivablesbynature
Item 31/12/2015 31/12/2014 Pettycash 4,917,828.70 8,613,005.35 Securitydeposit 9,126,499.58 5,710,249.11 Guaranteedeposit 19,654,321.18 21,201,491.16 Goodspromotionfee 6,617,843.27 5,021,765.71 Others 2,303,325.51 3,902,855.22 Total 42,619,818.24 44,449,366.55 (4)Accountsreceivableduefromthetopfivedebtorsof theGroupareasfollows:
Provisionfor%of thebalance
badand Companyname Nature Balance Aging of other
doubtful receivables
debts Guarantee within
ChinaResources(Shenzhen)Co.,Ltd 2,758,194.00 6.47 137,909.70 deposit oneyear
China Resources Sun Hung Kai Guarantee within
1,497,003.00 3.51 74,850.15 Properties(Hangzhou)Limited deposit oneyear
Goods
within
TheSwatchGroup(China)Ltd. promotion 1,177,889.45 2.76 58,894.47 oneyear
fee
ShenzhenYitianHolidayWorldProperty Guarantee within
1,090,523.00 2.56 54,526.15 DevelopmentCo.,Ltd deposit oneyear
Oris International Trade (Shanghai) Co., Goods within
1,059,500.00 2.49 52,975.00 Ltd. promotionfee oneyear
Total 7,583,109.45 17.79 379,155.47
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
(1)Inventoriesbycategories
31/12/2015 31/12/2014
Category Provision for Provision for di
Book balance diminution in Carrying amount Book balance minution in val Carrying amount value ue
Rawmaterials 160,662,691.18 6,305,697.86 154,356,993.32 129,886,207.63 7,759,807.87 122,126,399.76 Work-in-proce
17,310,018.61 - 17,310,018.61 29,054,964.10 - 29,054,964.10 ss
Finishedgoods 1,943,230,127.88 22,206,120.52 1,921,024,007.36 1,998,359,374.96 15,749,714.50 1,982,609,660.46 Total 2,121,202,837.67 28,511,818.38 2,092,691,019.29 2,157,300,546.69 23,509,522.37 2,133,791,024.32 Note:Attheyearend,thebalanceoftheGroup’sinventoryof brandedwatcheswithagingover3yearsisRMB204,730,851.60,accountsfor13.56%of theclosingbalanceof allbrandedwatches.Theopeningbalanceof thebrandedwatchesoftheGroup’sinventorywithagingover3yearsisRMB240,521,136.99,about16.67%of theopeningbalanceof thebrandedwatches. (2)Provisionfordiminutioninvalueof inventories
Increase Decrease
Category 31/12/2014 31/12/2015 Accrual Other Reversed Written-off
Rawmaterials 7,759,807.87 - - 94,272.69 1,359,837.32 6,305,697.86 Finishedgoods 15,749,714.50 6,456,406.02 - - - 22,206,120.52 Total 23,509,522.37 6,456,406.02 - 94,272.69 1,359,837.32 28,511,818.38 Provisionfordiminutioninvalueof inventories(continued)
Reasonsforinventory fallingpricereserves Category Determinationbasisof netrealizablevalue
reversedorwrittenoff in currentperiod Raw
Netrealizablevalueisdeterminedaccordingtotheestimatedsalepriceof finished
① materials
products produced deducted the costs that may incur till the completion of
production,estimatedsalecostsandrelatedtaxes
Finished Net realizablevalueisdeterminedaccording totheestimatedsale price offinished
- goods goodslesssalesanddistributionexpensesandrelatedtaxes
Note:
① Reversal is dueto theincrease of net realizablevalue of raw material. Written-off is duetosales of rawmaterial that were providedforimpairmentinpriorperiod.
7. Othercurrentassets
Item 31/12/2015 31/12/2015 DeductibleinputVATtax 10,185,449.99 8,356,400.02 Housingrental 4,065,558.45 4,270,819.57 Others 1,545,765.12 1,794,296.84 Total 15,796,773.56 14,421,516.43 8. Available-for-salefinancialassets
(1)Available-for-salefinancialassets
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
31/12/2015 31/12/2014
Item
Provision for Carrying Provision for Carrying Book balance Book balance
impairment amount impairment amount Available-for-saleequity
385,000.00 300,000.00 85,000.00 385,000.00 300,000.00 85,000.00 instrument
Incl.:measuredatcost 385,000.00 300,000.00 85,000.00 385,000.00 300,000.00 85,000.00 Total 385,000.00 300,000.00 85,000.00 385,000.00 300,000.00 85,000.00 (2)Available-for-salefinancialassetmeasuredatcost
Bookbalance Provision for impairment
I en nv tie ts yted
31/12/2014
I ecn
ar
e
aD
rec
s
31/12/2015 31/12/2014
cI arn
se
acD sre
e
e
31/12/2015
pIn erv
e
gce
n
e
es
t
ntm ta dC i nva i ds dh e se e
e
Shenzhen
Zhonghang
300,000.00 - - 300,000.00 300,000.00 - - 300,000.00 15.00 - Culture Co.
Ltd
Xi’an
Tangcheng
85,000.00 - - 85,000.00 - - - - 0.10 - Limited
Company
Total 385,000.00 - - 385,000.00 300,000.00 - - 300,000.00 -- - (3)Movementof theimpairmentof available-for-salefinancialassetsinthereportingperiod
Category Available-for-saleequityinstrument Impairmentasat31/12/2014 300,000.00 Accruedincurrentyear - Including:transferredfromother
- comprehensiveincome
Decreaseincurrentyear - Including:reversalduetofairvalueincreases - Impairmentasat31/12/2015 300,000.00
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
9. Long-termequityinvestments
Movement
Balanceof Cash
provision Investee
asatB 31al /a 1n 2c /e
2014 Additio
inIn cv oe mst em /le on st
s
A od fju ost tm hee rnt
Changesof
d oi rv pid re on fid
t Provisonfor
Bal 1a /n 1c 2e /2as 01a 5t 3
impairfo mr entas Reduction recognized Others
n comprehensiv otherequity announce impairment at underthe
eincome dtobe 31/12/2015 equitymethod
issued
① Associated
company
Shanghai
Watch
IndustryCo.,
42,389,759.91 - - 831,812.14 - - - - - 43,221,572.05 - Ltd(Shanghai
Watch
Industry)
Total 42,389,759.91 - - 831,812.14 - - - - - 43,221,572.05 -
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
10. Investmentproperty
Item Buildings Total I.Totalbookvalue
1.Balanceasat31/12/2014 340,029,020.44 340,029,020.44 2.Additions - - (1)Purchase - - (2)Inventory/fixed asset/construction in
- - progresstransfer
(3)Businesscombination - - 3.Disposals - - (1)Disposals - - (2)Other - - 4.Balanceasat31/12/2015 340,029,020.44 340,029,020.44 II.Accumulateddepreciationoramortization
1.Balanceasat31/12/2014 113,937,081.55 113,937,081.55 2.Additions 9,143,745.87 9,143,745.87 (1)Accruedoramortized 9,143,745.87 9,143,745.87 (2)Businesscombination - - (3)Otherincreases - - 3.Disposals - - (1)Disposal - - (2)Others - - 4.Balanceasat31/12/2015 123,080,827.42 123,080,827.42 III.Provisionofimpairment
1.Balanceasat31/12/2014 - - 2.Additions - - (1)Accrued - - (2)Otherincreases - - 3.Disposals - - (1)Disposal - - (2)Others - - 4.Balanceasat31/12/2015 - - IV.Carryingamount
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Note:Thedepreciationandamortizationrecognizedin2015isRMB9,143,745.87.
11. Fixedassets
(1) Fixedassetsbycategories
Item Propertyand Machinery Transportatio Electronic Other Total buildings nvehicles devices equipment
I.Totalbookvalue
1.Balanceasat
318,842,602.17 63,510,303.08 16,021,718.53 29,830,349.42 38,350,321.67 466,555,294.87 31/12/2014
2.Additions 40,214,221.05 16,361,135.14 883,703.40 4,192,363.41 1,889,137.34 63,540,560.34 (1)Purchasing 40,214,221.05 16,361,135.14 883,703.40 4,192,363.41 1,889,137.34 63,540,560.34 (2)Transferfrom -
- - - - - constructioninprogress
(3)Increasedueto
-
- - - - - businesscombination
3.Disposals - 406,320.94 385,777.94 162,294.30 80,612.61 1,035,005.79 (1)Disposalorretire - 406,320.94 385,777.94 162,294.30 80,612.61 1,035,005.79 (2)Otherdecrease - - - - -
4.Balanceasat
359,056,823.22 79,465,117.28 16,519,643.99 33,860,418.53 40,158,846.40 529,060,849.42 31/12/2015
II. Accumulated
depreciation
1.Balanceasat
53,550,667.30 25,571,773.23 10,668,986.69 21,098,150.07 31,932,847.00 142,822,424.29 31/12/2014
2.Additions 11,213,864.75 7,375,642.57 2,086,029.47 3,160,459.68 1,167,168.65 25,003,165.12 (1)Accrual 11,213,864.75 7,375,642.57 2,086,029.47 3,160,459.68 1,167,168.65 25,003,165.12 (2)Otherincrease - - - - - - 3.Reductions - 201,507.94 366,489.04 132,919.29 43,651.73 744,568.00 (1)Disposalorretire - 201,507.94 366,489.04 132,919.29 43,651.73 744,568.00 (2)Otherdecrease - - - - - - 4.Balanceasat
64,764,532.05 32,745,907.86 12,388,527.12 24,125,690.46 33,056,363.92 167,081,021.41 31/12/2015
III. Provisionfor
- - - - - - impairment
1.Balanceasat
- - - - - - 31/12/2014
2.Additions - - - - - - (1)Accrual - - - - - - (2)Otherincrease - - - - - - 3.Reductions - - - - - - (1)Disposalorretire - - - - - - (2)Otherdecrease - - - - - - 4.Balanceasat
- - - - - - 31/12/2015
IV. Carryingamount
1.Asat31/12/2015 294,292,291.17 46,719,209.42 4,131,116.87 9,734,728.07 7,102,482.48 361,979,828.01
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Note:
Fixedassetsthatarepledgedorguaranteed
As at 31 December 2015, the property with original cost of RMB25,183,927.61, net book value of RMB20,007,240.87 was pledgedforlong-termloanof RMB5,877,036.33.
(2)Fixedassetsthatdonothavecertificateforpropertyright
Reasonfornothavingcertificatefor Item Bookvalue
propertyrights
OfficeroomsforHarbinBranch 319,555.68 Defectiveinpropertyright
(3)CostoftheGroup’sassetsthatarefullydepreciatedbutstillinuseamountstoRMB76,709,868.88attheendof year2015. 12. Constructioninprogress
(1)Detailsof constructioninprogress
31/12/2015 31/12/2014
Item
Bookbalance Impairment
Netcarrying
Bookbalance Impairment
Netcarrying amount amountClock&Watch
basein 173,189,274.57 - 173,189,274.57 51,283,233.53 - 51,283,233.53 GuangmingNew
FIYTATech.
BuildingCanopy - - - 17,279.00 - 17,279.00 project
FIYTATech.
Building
basement
- - - 88,751.00 - 88,751.00 renovation
project
Total 173,189,274.57 - 173,189,274.57 51,389,263.53 - 51,389,263.53 (2)TheGroup’smajorconstructionprojectsinprogressaresetoutasfollows
Transfer Other Including
Accumulated
Project redto current Capitalize
31/12/2014 Additions capitalized 31/12/2015 name fixed deducti capitalizeddrate%
interest
assets on interest
Clock&
Watchbase
in
51,283,233.53 121,906,041.04 - - 3,386,352.38 2,869,675.80 5.77 173,189,274.57 Guangming
NewDistrict
TheGroup’smajorconstructionprojectsinprogressaresetoutasfollows(continued):
Percentageof
accumulated
Project Budget Progress Sources of funds investmentto
budget%
Clock&Watchbasein Self-raisedandloanfrom 270,000,000.00 64.14 64.39%
GuangmingNewDistrict thebank
13. Intangibleasset
(1)Intangibleasset
Item Landright Softwaresystem Righttouse Total
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
trademarks
I.Bookvalue
1.Balanceasat
34,854,239.40 4,631,161.08 9,547,313.86 49,032,714.34 31/12/2014
2Additions - 2,327,148.25 - 2,327,148.25 (1)Purchasing - 2,327,148.25 - 2,327,148.25(2)InternalR&D - - - - (3)Increasedueto
- - - - businesscombination
(4)Otherincreases - - - - 3.Reductions - - - - (1)Disposal - - - - (2)Otherdecreases - - - - 4.Balanceasat31/12/2015 34,854,239.40 6,958,309.33 9,547,313.86 51,359,862.59 II.Accumulatedamortization
1.Balanceasat
7,692,142.62 2,627,273.78 3,210,772.22 13,530,188.62 31/12/2014
2.Additions: 731,567.04 657,160.31 11,319.96 1,400,047.31 (1)Accrual 731,567.04 657,160.31 11,319.96 1,400,047.31 (2)Otherincreases - - - - 3.Reduction - - - - (1)Disposal - - - - (2)Otherdecreases - - - - 4.Balanceasat
8,423,709.66 3,284,434.09 3,222,092.18 14,930,235.93 31/12/2015
III.Provisionforimpairment
1.Balanceasat
- - - - 31/12/2014
2.Additions: - - - - (1)Accrual - - - - (2)Otherincreases - - - - 3.Reduction - - - - (1)Disposal - - - - (2)Otherdecreases - - - - 4.Balanceasat
- - - - 31/12/2015
IV.Carryingamount
1.Balanceasat
26,430,529.74 3,673,875.24 6,325,221.68 36,429,626.66 31/12/2015
2.Balanceasat
27,162,096.78 2,003,887.30 6,336,541.64 35,502,525.72 31/12/2014
Note:Amortizationrecognizedin2015isRMB1,400,047.31元。
14. Goodwill
(1)Bookvalueof goodwill
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Nameofinvesteeorevents
31/12/2014 Additon Reduction 31/12/2015 constitutinggoodwill
LishanDepartmentStore 1,735,756.48 - - 1,735,756.48 (2)Provisionforimpairmentof goodwill
Nameofinvesteeorevents Balance as at
Additon Reduction
Balanceasat constitutinggoodwill 31/12/2014
Provision Other Disposal Other
31/12/2015 LishanDepartmentStore 1,735,756.48 - - - - 1,735,756.48 Note:
HARMONYCompany,asubsidiaryoftheCompany,acquired100%sharesof LishanDepartmentStoreon31March2008with consideration of RMB1,200,000.00. On the date of acquisition, the fair value of identifiable net assets of Lishan Department StorewasRMB(535,756.48).HARMONYCompanyrecordedthedifferenceof RMB1,735,756.48asgoodwillintheconsolidated financialstatements.Attheendof 2008,itcarriedouttheimpairmenttestforthegoodwill.Astherecoverableamountwaslower thanitsbookvalue,HARMONYCompanychargedthegoodwillimpairmentlossesof RMB1,735,756.48totheprofitorlossin year2008.
15. Long-termdeferredexpenses
Reduction
Item 31/12/2014 Additions 31/12/2015 Others
Amortization
deduction
Counter
fabrication 59,982,521.32 68,436,819.26 61,531,837.33 - 66,887,503.25 expenses
Renovation
79,898,617.77 24,842,100.99 32,968,056.59 - 71,772,662.17 expenses
Feefor
9,504,961.77 16,230,757.44 9,362,104.68 - 16,373,614.53 representation
Others 347,465.17 575,502.72 252,183.45 - 670,784.44 Total 149,733,566.03 110,085,180.41 104,114,182.05 - 155,704,564.39 16. Deferredincometaxassetsanddeferredincometaxliabilities
(1)Deferredincometaxassetsanddeferredincometaxliabilitiesbeforeoffsetting
31/12/2015 31/12/2014
Item Deductible/Taxab Deductible/Taxab
Deferredincome Deferredincome letemporary letemporary
taxassets taxassets difference difference
Deferredincometaxassets:
Assetimpairmentprovision 53,423,315.43 12,781,048.95 35,096,814.32 7,934,522.40 Offsetinternalunrealizedprofit 371,236,241.47 87,969,273.73 321,704,912.25 79,169,123.81 Deferredincome 4,300,000.00 1,075,000.00 4,200,000.00 1,050,000.00 Deductibleloss 16,561,138.12 4,076,400.48 10,815,273.17 2,515,429.89 Subtotal 445,520,695.02 105,901,723.16 371,816,999.74 90,669,076.10 (2)Detailsofdeductibletemporarydifferenceanddeductiblelossesthathaven’tbeenrecognizedasdeferredtaxassets
Item 31/12/2015 31/12/2014
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Deductibletemporarydifference 2,035,756.48 2,035,756.48 17. Othernon-currentassets
Item 31/12/2015 31/12/2014 Prepaidpropertybuildingfund
- 31,500,000.00 Prepaidequipmentfund
5,118,833.65 - Total 5,118,833.65 31,500,000.00 18. Short-termloans
(1)Classificationof short-termloans
Item 31/12/2015 31/12/2014 Guaranteedloan 338,186,200.00 436,445,000.00 CreditLoan 650,000,000.00 553,000,000.00 Total 988,186,200.00 989,445,000.00 Note:
1 Therearenounpaidshort-termloansthatfalldue.
2 RefertoNoteX.5(3)fordetailsof guaranteebetweenrelated-parties.
19. Accountspayables
Item 31/12/2015 31/12/2014 Tradepayables 111,750,463.34 136,579,035.50 Payablesformaterialpurchased 20,477,883.44 10,328,743.55 Payablesforprojectwarranty 23,711,339.76 211,339.76 Total 155,939,686.54 147,119,118.81 Among,significantaccountspayableagingover1year
Item 31/12/2015 Reasons for not settle ShenzhenRuishiWatchCo.,Ltd. 825,789.29 Invoice not received 20. Advancesfromcustomer
Item 31/12/2015 31/12/2014 Tradeadvancesreceived 14,823,613.26 8,602,932.19 Rentaladvancesreceived 3,207,516.61 3,484,435.98 Total 18,031,129.87 12,087,368.17 21. Employeeremunerationpayable
Item 31/12/2014 Increase Decrease 31/12/2015 Short-termremuneration 38,082,957.60 457,737,029.58 456,909,320.37 38,910,666.81
Post-employmentwelfare-defined 565,474.81 39,118,755.83 39,198,149.50 486,081.14
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Item 31/12/2014 Increase Decrease 31/12/2015 contributionplans
Dismissalwelfare - 2,304,305.95 2,304,305.95 - Total 38,648,432.41 499,160,091.36 498,411,775.82 39,396,747.95 (1)Short-termemployeebenefits
||||||
|-|-|-|-|-|
|Item|31/12/2014|Increase|Decrease|31/12/2015|
|Wages,bonusesandallowances|37,656,100.67|408,359,831.00|407,320,090.39|38,695,841.28|
|EmployeeWelfare|-|7,971,090.54|7,971,090.54|-|
|Socialinsurance|-|15,862,607.42|15,862,607.42|-|
|Incl.：1.medicalinsurance|-|13,573,559.22|13,573,559.22|-|
|2.work-relatedinjuryinsurance|-|881,679.02|881,679.02|-|
|3.maternityinsurance|-|1,407,369.18|1,407,369.18|-|
|Housingfund|-|15,260,562.48|15,260,562.48|-|
|Expenditureforlaborunionandemployee|426,856.93|8,336,445.02|8,548,476.42|214,825.53|
|trainingOthershort-termbenefits|-|1,946,493.12|1,946,493.12|-|
|Total|38,082,957.60|457,737,029.58|456,909,320.37|38,910,666.81|

 (2)Definedcontributionplans
||||||
|-|-|-|-|-|
|Item|31/12/2014|Increase|Decrease|31/12/2015|

 Post-employmentwelfare
||||||
|-|-|-|-|-|
|Incl.：1．endowmentinsurance|-|35,009,138.91|35,008,301.11|837.80|
|2．unemploymentinsurance|-|1,926,514.75|1,926,514.75|-|
|3．Enterpriseannuitypayment|565,474.81|2,183,102.17|2,263,333.64|485,243.34|
|4．Others|-|-|-|-|
|Total|565,474.81|39,118,755.83|39,198,149.50|486,081.14|

 22. Taxespayable
Item 31/12/2015 31/12/2014 Valueaddedtax 38,446,286.82 39,838,385.65 Businesstax 585,194.96 795,720.42 Corporateincometax 27,163,568.79 34,315,435.06 Individualincometax 1,102,201.03 745,837.07Citymaintenance&constructiontax 612,201.25 465,372.23
Propertytax 45,596.12 618,271.30
Educationalsurcharges 395,801.04 276,780.09
Stampduty 242,297.50 252,083.51
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Item 31/12/2015 31/12/2014 Embankmentprotectionfee 22,414.09 8,859.19 Others 306,171.21 286,025.54 Total 68,921,732.81 77,602,770.06 23. Interestpayable
Item 31/12/2015 31/12/2014 605,563.29 597,095.78 Interestpayableforlong-termloan
16,800,000.00 16,800,000.00 Interestoncorporatebonds
Interestpayableforshort-termloan 1,806,066.73 2,023,797.97 Total 19,211,630.02 19,420,893.75 24. Otherpayables
Item 31/12/2015 31/12/2014 Securitydeposit 17,427,761.30 16,573,961.57 Shareholderloans - 150,000,000.00 Decorationexpenses 4,268,223.01 4,712,095.11 Downpayment 3,052,393.03 3,331,638.94 Storeactivityfunds 8,504,697.12 6,075,167.30 Personalaccountspayable 1,802,485.42 358,160.60 Housingallowance 1,760,000.00 - Expensesforcapitalraising 1,146,772.99 - Others 10,169,283.33 7,523,876.93 Total 48,131,616.20 188,574,900.45 Among,significantotherpayablesagingover1year:
Reasonsforunpaidor Item Amount
unsettled
ShenzhenTencentComputerSystemCo.,Ltd. 4,693,429.16 withinleaseterm
OracleR&DCenter(Shenzhen)Limited 811,590.00 withinleaseterm
ChinaTenthMetallurgyGroupLimitedCorporation 690,000.00 Securitydepositforproject ShenzhenYitianxunTechnologyCo.,Ltd 505,657.80 withinleaseterm
ShenzhenXiangyaFoodCo.,Ltd. 471,760.00 withinleaseterm
ShenzhenAvicRealEstateCo.,Ltd 424,800.00 withinleaseterm
ShenzhenHonestarElectronicLimited 375,144.00 withinleaseterm
ShenzhenGoodFamilySports-WareChainLimited 351,030.00 withinleaseterm
SunDawei 358,160.60 Not yet been returned ChinaMerchantsBankShenzhenSci-techParkBranch 349,692.00 withinleaseterm
ShenzhenUni-phoneSelf-serviceKara-OkEntertainment 334,880.00 withinleaseterm
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Reasonsforunpaidor Item Amount
unsettled
SupermarketLimited
ShenzhenOrientalBoilerControlCo.,Ltd 318,491.60 withinleaseterm
ShenzhenHangjianEngineeringCostConsultationCo.,Ltd 208,304.00 withinleaseterm
Total 9,892,939.16
25. Othercurrentliabilities
Item 31/12/2015 31/12/2014 Accruedexpenses 1,988,252.38 5,482,521.27 26. Long-termloan
Item 31/12/2015
Rangeof
31/12/2014
Rangeof interestrate interestrate Pledgeloans 5,877,036.33 3.00-4.25% 6,255,497.65 3.00-4.25% Guaranteedloan 194,031,928.00 2.94-6.06% 133,696,928.00 3.00-5.69% Subtotal 199,908,964.33 139,952,425.65
Less: Long-term loan due within one
108,914,000.00 -
year
Total 90,994,964.33 139,952,425.65
Note:
① Thereisnounpaidlong-termloansthatfalldue.
② AsdescribedinNoteV.11,theloanispledgedbypropertyandhouseswithoriginalcostof RMB25,183,927.61andbook valueof RMB20,007,240.87.
③RefertoNoteX.5(3)forguaranteebetweenrelatedparties.
27. Bondspayable
Item 31/12/2015 31/12/2014 12FIYTADebt 399,823,760.28 398,767,929.40 (1)Movementof bondspayable
BondName Par value Issue date Bond period Issue amount 12FIYTADebt 400,000,000.00 27/2/2013 3+2years 400,000,000.00 Subtotal 400,000,000.00 400,000,000.00 Bondspayable(continued)
Interest Amortization
BondName 31/12/2014 Issued accruedon of premium Repayment 31/12/2015 parvalue ordiscount
12FIYTA
398,767,929.40 - 20,160,000.00 1,055,830.88 20,160,000.00 399,823,760.28 Debt
Subtotal 398,767,929.40 - 20,160,000.00 1,055,830.88 20,160,000.00 399,823,760.28
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Less:
Long-termloan
- - - - - - duewithinone
year
Total 398,767,929.40 - 20,160,000.00 1,055,830.88 20,160,000.00 399,823,760.28 28. Deferredincome
Item 31/12/2014 Increase Decrease 31/12/2015 Formingreasons Governmentgrant 4,200,000.00 2,800,000.00 2,700,000.00 4,300,000.00
Note:
Incl.:Deferredincome—governmentalgrant
Amount
recognizedin Other Relatedto Subsidyproject 31/12/2014 Increase 31/12/2015
Non-operating Changes assets/income Income
Technicalstudyforcivil
aviationairbornecockpit 1,200,000.00 - 1,200,000.00 - - Income related clock(note①)
Specialfundfor
Shenzhenindustrial
designindustry 3,000,000.00 - 1,500,000.00 - 1,500,000.00 Assetrelated development
(Note②)
Funding project for
construction of
National Enterprise - 2,000,000.00 - - 2,000,000.00 Assetrelated Technology Center(Note
③)
Researching project for
gordian technique of
- 800,000.00 - - 800,000.00 Income related standard timing system
of DF101(Note④)
Total 4,200,000.00 2,800,000.00 2,700,000.00 - 4,300,000.00
Note:
Note① :Special fund was obtained from the First Special Fund for Technology Innovation Scheming Technological DevelopmentProject(AdvancedEquipmentManufacturing)of 2013MunicipalTechnologyResearchandDevelopmentFundby Technological InnovationCommissionof Shenzhen Municipality and FinanceCommission of Shenzhen Municipalityaccording to Administrative Measures for Shenzhen Technology Research and Development and Administrative Measures for Shenzhen TechnologySchemingProjecton28June2013.
Note②：SpecialfundforShenzhenindustrialdesignindustrydevelopmentwasobtainedaccordingtotheShenJingmaoXinxi Jishu Zi (2013) No.227 - Operating Specification for Affirmation and Fund Plan of Shenzhen Industrial Design Center (Trial) whichisjointlyissuedbyEconomy,TradeandInformationCommissionof ShenzhenMunicipalityandFinanceCommissionof ShenzhenMunicipalityon10Oct2014.
Note③：Fundingprojectforconstructionof ShenzhenEnterpriseTechnologyCenterwasobtainedaccordingtotheNoticefor the1stSupportiveProjectin2015of FundingProjectforConstructionof ShenzhenEnterpriseTechnologyCenterwhichwasissuedbyShenzhenDevelopmentandReformCommission(ShenJingMaoXinXiYu[2015]No.129)on28Oct2015. Note④：Specialfundforuniversity-industrycooperationin2013wasobtainedaccordingtoYueKeGongShi[2014]No.13– PublicityaboutProjectswhichwouldbeSupportedbySpecialFundof ComprehensiveStrategicCooperationbetweenProvince andCollegeand SpecialFundof Province-Ministry University-IndustryCooperationin2013,issuedbyGuangdongScienceand TechnologyDepartmenton9Dec2015.
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Additionsorreduction(+,-)
Item 31/12/2014 Capitalization 31/12/2015 Issuanceof Bonus
ofcapital Others Subtotal
newshare shares
reserves
Totalshares 39,276.7870 4,597.7011 - - - 4,597.7011 43,874.4881 Note:
Theabovesharecapitalhasbeenverified withthecapitalverificationreport–ZhitongYanZi(2015) No.441ZC0652, whichis issuedbyGrantThornton.
30. Capitalreserve
Item 31/12/2014 Increase Decrease 31/12/2015 Sharepremium 511,015,832.95 536,947,362.62 - 1,047,963,195.57 Othercapitalreserves 14,492,448.65 - - 14,492,448.65 Total 525,508,281.60 536,947,362.62 - 1,062,455,644.22 Asdescribedinnote1,theincreaseisthepremiumof non-publicofferingof ordinaryshare(Ashare).
31. Othercomprehensiveincome
Movement
Less:
recordedin
other
Amount comprehens Less:
Asat
incurred iveincome Inco Attributeto Attribute Asat31/12/2015 Item
31/12/2014(1)
before inprior me parent tominority
(3)=(1)+(2) incometax periodand tax company shareholde
incurrent transferred expe aftertax(2) rsaftertax
period toprofitor nses
lossin
current
period
I.Other
comprehensive
incomeitemswhich
willnotbe - - - - - - - reclassified
subsequentlyto
profitorloss
II.Other
comprehensive
incomeitemswhich
-17,609,265.22 658,770.06 - - 464,075.51 194,694.55 -17,145,189.71 willbereclassified
subsequentlyto
profitorloss
1.Translation
differenceof
-17,609,265.22 658,770.06 - - 464,075.51 194,694.55 -17,145,189.71 foreigncurrency
financialstatements
Totalother
comprehensive -17,609,265.22 658,770.06 - - 464,075.51 194,694.55 -17,145,189.71 income
Note:Netafter-taxothercomprehensiveincomeincurredincurrentperiodisRMB658,770.06.Amongst,theamountattributeto parentcompanyshareholdersisRMB464,075.51andtheamountattributetominorityshareholdersisRMB194,694.55.
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Item 31/12/2014 Increase Decrease 31/12/2015 Statutorysurplus
103,930,572.89 13,827,610.26 - 117,758,183.15 reserve
Discretionarysurplus 61,984,894.00
- - 61,984,894.00 reserve
Total 165,915,466.89 13,827,610.26 - 179,743,077.15 Note:according tothe Company Lawand Articles of Association, theCompany draws statutory surplusreserve at10% of net profit.Ifthestatutorysurplusreserveisover50%oftheCompany’sregisteredcapital,drawingof statutorysurplusreservecan bestopped.
33. Undistributedprofit
Appropriation Item 31/12/2015 31/12/2014
proportion Undistributedprofitattheendofprioryearbeforeadjustments 566,819,577.37 469,706,600.67 -- Adjustmentstoundistributedprofitatthebeginningofyear - - -- Undistributedprofitatthebeginningofayearafteradjustment 566,819,577.37 469,706,600.67 -- Plus:Netprofitattributabletotheowneroftheparentcompany
121,702,057.44 145,591,136.39 -- fortheyear
Less:statutorysurplusreservedrawn 13,827,610.26 9,201,372.69 10% Dividendspayabletoordinaryshares 39,276,787.00 39,276,787.00 -- 635,417,237.55 566,819,577.37 -- Undistributedprofitattheendoftheyear
Incl.：Surplusreservedrawnbysubsidiariesthat attributableto
2,279,410.31 3,063,794.53 -- parentcompany
Note:
(1)Descriptionondistributionof dividend
Pursuant to the “Resolution of Equity Distribution for Year 2014” approved at the 2014 Annual General Meeting held on 17 June2015,theCompanydistributedtoallshareholderscashdividendof RMB1.00(taxinclusive)forevery 10sharesheldbased ontotalsharesof 392,767,870asat31December2014.TotalcashdividenddistributedwasRMB39,276,787.00.
(2)Informationonsubsidiary’ssurplusreserveinthereportingperiod
In 2015, HARMONY Company, a subsidiary of the Company, drew surplus reserve of RMB1,613,488.44, of which RMB1,613,488.44 is attributable to the parent company. In 2015, Technology Company, a subsidiary of the Company, drew surplusreserveof RMB665,921.87,of whichRMB665,921.87isattributabletotheparentcompany.
34. Operatingrevenueandoperatingcost
2015 2014
Item
Operating revenue Operating cost Operating revenue Operating cost Revenuefrommain
3,127,774,670.18 1,920,619,137.50 3,245,370,291.15 2,043,109,870.34 business
Revenuefromother
34,421,542.72 8,894,528.54 32,772,494.72 11,605,087.11 business
Total 3,162,196,212.90 1,929,513,666.04 3,278,142,785.87 2,054,714,957.45 Note:
(1) Primaryoperatingincomeandoperatingcostbyindustry
Industrysector 2015 2014
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Operating revenue Operating cost Operating revenue Operating cost Watches 3,032,902,719.41 1,906,085,186.72 3,154,917,328.23 2,030,149,894.46 Propertyleasing 94,871,950.77 14,533,950.78 90,452,962.92 12,959,975.88 Total 3,127,774,670.18 1,920,619,137.50 3,245,370,291.15 2,043,109,870.34 (2) Primaryoperatingincomeandoperatingcostbyproducts
2015 2014
Product
Operating revenue Operating cost Operating revenue Operating cost Brandedwatches 2,147,608,465.85 1,623,918,119.34 2,298,438,269.08 1,753,276,107.39 FIYTAwatch 885,294,253.56 282,167,067.38 856,479,059.15 276,873,787.07 Propertyleasing 94,871,950.77 14,533,950.78 90,452,962.92 12,959,975.88 Total 3,127,774,670.18 1,920,619,137.50 3,245,370,291.15 2,043,109,870.34 (3) Primaryoperatingincomeandoperatingcostbyregions
2015 2014
Region
Operating revenue Operating cost Operating revenue Operating cost SouthernChina 999,754,959.45 553,758,526.17 1,033,845,169.19 612,581,751.95 NorthwestChina 524,570,697.36 340,488,440.23 565,700,125.97 367,811,265.82 NorthernChina 504,961,668.45 329,038,618.83 539,995,688.23 352,347,650.86 EasternChina 449,126,026.79 277,859,635.82 447,079,002.18 281,649,017.63 NortheastChina 303,634,173.44 192,956,014.26 310,178,526.39 200,041,144.79 SouthwestChina 345,727,144.69 226,517,902.19 348,571,779.19 228,679,039.29 Total 3,127,774,670.18 1,920,619,137.50 3,245,370,291.15 2,043,109,870.34 35. Businesstaxandsurcharges
Item 2015 2014
Consumptiontax - 460,361.20 Businesstax 5,596,456.29 5,284,703.06 Urbanmaintenanceandconstruction
13,940,149.40 9,904,010.65 tax
Educationalsurcharge 5,962,188.92 4,958,321.12 Localeducationalsurcharge 3,938,882.37 1,965,510.68 Others 1,236,833.20 1,328,974.59 Total 30,674,510.18 23,901,881.30 Note:Thecriteriaof businesstaxesandsurchargesaccruedandpaidrefertoNoteIV.Taxation.
36. Sellinganddistributionexpenses
Item 2015 2014
Wages 263,308,344.47 226,664,366.60 Amortizationoflong-termdeferred
93,564,343.23 90,323,235.31
expense
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Marketpromotionexpense 84,050,882.70 79,567,696.06 Rental 65,286,842.09 76,994,362.92 Departmentstoreexpense 56,462,314.77 51,485,467.55 Advertisingexpense 49,861,317.33 56,732,801.49Worker’sinsuranceexpenses 37,804,708.38 31,423,816.21 Exhibitionexpenses
15,789,224.96 14,873,436.45 Packingexpense 15,478,171.90 11,661,907.15 Utilities 13,570,654.19 12,972,823.88 Others
84,359,716.57 70,140,042.49 Total 779,536,520.59 722,839,956.11 37. Administrativeexpenses
Item 2015 2014
Wages 93,399,507.02 101,919,779.73R&Dexpenses 37,481,362.43 33,842,818.77Worker’sinsuranceexpenses 11,091,233.56 10,679,457.31 Depreciation 8,122,537.00 7,786,791.73 Travelexpense 6,647,853.61 8,299,343.91 Laborunionexpenditure 4,250,501.29 4,243,665.80 Housingfund 3,613,504.12 3,234,901.43 Officeexpenses 3,512,382.34 3,536,247.04 Amortizationoflong-termdeferred
2,957,005.19 2,823,531.65 expense
Rental 2,457,640.32 2,358,336.15 Others 24,544,339.88 29,727,154.06 Total 198,077,866.76 208,452,027.58 38. Financialexpenses
Item 2015 2014
Interestexpense 89,096,566.16 97,571,157.24 Less:Interestcapitalization 2,869,675.80 516,676.58 Less:Interestincome 1,997,798.65 1,750,775.15 Exchangegainorlosses -1,457,015.95 -2,544,542.58 Bankchargesandothers 11,575,389.03 13,060,297.89 Total 94,347,464.79 105,819,460.82 Note:
Amountof interestcapitalizationisincludedinconstructioninprogress.Thecapitalizationrateusedfordeterminingtheamount ofinterestcapitalizationis5.77%.
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Item 2015 2014
(1)Baddebtloss -108,134.50 2,275,348.40 (2)Inventoryimpairmentloss 6,362,133.33 345,954.89 Total 6,253,998.83 2,621,303.29 40. Investmentincome
Item 2015 2014
Investment gain from the long-term equity investment measured by
831,812.14 -848,180.21 equitymethod
41. Non-operatingincome
Amountincludedincurrentyear’s Item 2015 2014
non-recurringprofitor loss Totalgainondisposalofthenon-current
94,316.07 70,124.76 94,316.07 assets
Including:gainondisposaloffixedassets 94,316.07 70,124.76 94,316.07 Clearingofpayablesthatcannotbepaid 23,568.41 1,209,959.00 23,568.41 Breachpenalty 313,888.80 481,196.07 313,888.80 Governmentgrant 10,889,579.23 10,344,542.00 10,889,579.23 Others 715,899.31 435,274.03 715,899.31 Total 12,037,251.82 12,541,095.86 12,037,251.82 Thedetailsofgovernmentgrantsareasfollows:
Relatedto
2015 2014 Note Projects assets/income
Special Fund for Industrial Transferring and
Upgrading in 2015 of Shenzhen Economy&
RelatedtoIncome
Trade and Information System Steering 3,115,000.00 (1) Committee
Special Fund for Industrial Transferring and
Upgrading in 2014 of Shenzhen Economy&
RelatedtoIncome
Trade and Information System Steering 2,643,000.00 (2) Committee
Special Fund for Development of Shenzhen
Relatedtoasset
IndustrialDesigning 1,500,000.00 (3) ElectronicClockTechnicalResearchProjectfor
RelatedtoIncome
CivilAviationFlightDeck 1,200,000.00 (4) GovernmentSubsidiariesforBaselWatchFair RelatedtoIncome
900,271.23 20,000.00 (5) Special Fund for Development of Creative
RelatedtoIncome
Industryof NanshanDistrictin2015 469,000.00 (6)
Subsidiaries for Merit Rating of Shenzhen
RelatedtoIncome
NanshanEconomyPromotingBureau 300,000.00 (7)
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Relatedto
2015 2014 Note Projects assets/income
Subsidiaries for 8 Standardized Research
RelatedtoIncome
Projectsof ShenzhenBaoanBureauof Finance 264,250.00 (8) Fund for Performing Standardized Strategy of
RelatedtoIncome
Shenzhenin2015 230,000.00 (9) Award for 15th National Patent Appearance
RelatedtoIncome
Designing 100,000.00 350,000.00 (10) TechnicalBonusof Guangdongin2013 RelatedtoIncome
50,000.00 (11) Subsidiaries for Standardized Projects of
RelatedtoIncome
NanshanBureauof ScienceandTechnology 35,000.00
2nd Batch of Supportive Fund for Register
RelatedtoIncome
abroadin2015of Shenzhen 33,000.00 (12) 2nd Government Subsidiaries for Supporting
Improving the Ability of International Trading RelatedtoIncome
27,258.00 (13) in2014
RelatedtoIncome
BonusforFamousIndustrialDesigningin2015
20,000.00 (14) 2nd Subsidiaries for Copyright in 2015 of
RelatedtoIncome
ShenzhenMarketSupervisoryAuthority 1,800.00
Subsidiaries for Commerce Circulation of
RelatedtoIncome
ShenzhenEconomyandTradeCommission 1,000.00 (15) 2013 Specific subsidy fund for self-innovation
RelatedtoIncome
industrydevelopmentof NanshanDistrict - 2,421,000.00
2013 subsidy fund of Shenzhen enterprise
RelatedtoIncome
technologycenterdevelopment - 2,000,000.00
Specificsubsidyof Shenzhenbrandfoster RelatedtoIncome
- 1,000,000.00
Specific subsidy for Shenzhen strategic
RelatedtoIncome
emergingindustrydevelopment - 800,000.00
E-commerce FIYTA Mobile Internet Sales
RelatedtoIncome
ModeInnovationProject - 800,000.00
Specific fund for cultural creative industry
RelatedtoIncome
development - 780,000.00
2013 subsidy fund for Shenzhen industrial
design and innovation results transferred into - 500,000.00
RelatedtoIncome
application
Awardof the14thPatentAward RelatedtoIncome
- 350,000.00
Awardof the11thChinesePatentAward RelatedtoIncome
- 350,000.00
Standardizationfund RelatedtoIncome
- 307,000.00
2012 integration project involving production,
RelatedtoIncome
studyandresearch - 300,000.00
2014 subsidy fund for implementing
RelatedtoIncome
standardizationstrategy - 138,042.00
2014subsidyforhigh-techenterprises RelatedtoIncome
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Relatedto
2015 2014 Note Projects assets/income
2014 subsidy for the first batch of overseas
RelatedtoIncome
trademarkregistrationapplication - 70,000.00
2014 award for Shenzhen renowned industrial
RelatedtoIncome
designaward - 50,000.00
The15thChinaPatentAward RelatedtoIncome
- 5,000.00
Specific subsidy fund for innovation of Taitan
RelatedtoIncome
WatchTestCo.,Ltd. - 3,500.00
Total 10,889,579.23 10,344,542.00
Note:
(1) Special Fund for Industrial Transferring and Upgrading in 2015 was obtained according to Shen Jingmao Xinxi Yusuan Zi[2015] No.295-Notice about Special Fund for Industrial Transferring and Upgrading by Shenzhen Economy, Trade and InformationCommission in2015 andShenJingmaoXinxiYusuanZi[2015]No.236–Notice about 1st Batchof SpecialFund forIndustrialTransferringandUpgradingbyShenzhenEconomy,TradeandInformationCommissionin2015.
(2) Special Fund for Industrial Transferring and Upgrading in 2014 was obtained according to Shen Jingmao Xinxi Yusuan Zi[2015] No.33-Notice about Special Fund for Industrial Transferring and Upgrading by Shenzhen Economy, Trade and Information Commission in 2014 and Shen Jingmao Xinxi Yusuan Zi[2015] No.76– Notice about planed Special Fund for IndustrialTransferringandUpgradingbyShenzhenEconomy,TradeandInformationCommissionin2014.
(3) Special Fund for Development of Shenzhen Industrial Designing was obtained according to Shen Jingmao Xinxi Jishu Zi[2013] No.227-Rules for Affirming and Planning of Shenzhen Industrial Centre (Trial) which was jointly issued by Shenzhen Economy,TradeandInformationCommissionandShenzhenFinanceCommission.
(4)Specialfund for technology development project (advanceequipment manufacturing) of 1st batchof technology innovation plan was obtained according to Management Method to Shenzhen Science and Technology Research and Management Method of ShenzhenScienceandTechnologyProject.
(5)GovernmentsubsidyfundforBaselWatchFairfor2014and2015obtainedfromShenzhenAssociationof Timepieces. (6)SpecialFundobtainedaccordingtoManagementMethodtoSpecialFundforDevelopmentof CreativeIndustryof NanshanDistrictandShenNanJing[2015]No.3-NoticeaboutDisputingSpecialFundforDevelopmentof CreativeIndustryof Nanshan District(3rdBatch).
(7)SubsidyobtainedaccordingtoShenNanJing[2015]No.2-NoticeaboutDisputingSubsidiariesforMeritRatingof Shenzhen NanshanEconomyPromotingBureauin2015.
(8) Subsidy for Implimenting Standardizing Strategy was obtained according to Shen Bao Fu[2012] No.21-Notice about Baoan District Promoting Industrial Transferring and Upgrading and Development of Economy and Shen Bao Gui[2013] No.14- NoticeaboutManagementMethodtoBaoanSpecificFinancialFunds.
(9) Fund for Implementing Standardized Strategy of Shenzhen in 2015 was obtained according to Management Method to Performing Standardized Strategy of Shenzhen, audited by Shenzhen Market and Quality Supervision and Administration CommissionandreviewedbyShenzhenFinanceCommission.
(10) Award for 15th National Appearance Designing was obtained according to Yue FuHan[2014] No.155- Notice about EncouragingEntitiesandIndividualsWhohadWintheBonusof 15thNationalPatentAwardissuedbyPeople'sGovernmentof GuangdongProvince.
(11)Secondclassprizeof TechnicalBonusofGuangdongin2013wasobtainedaccordingtoYueHan[2014]No.18-Noticeabout the2013annualreportof theGuangdongscienceandTechnologyAwardbyGuangdongGovernment
(12)The1stBatchof supportivefundforregisterof trademarkabroadin2015of ShenzhenwasobtainedaccordingtoShenCaiGui[2014]No18-NoticeabouManagementMethodtoSpecialFundforIntellectualPropertyinShenzhen
(13)The2ndGovernmentSubsidiariesforSupportingImprovingtheAbilityof InternationalCompetencein2014wasobtained according to Shen CaiGui[2014] No.13- Details of Supporting Improving the Ability of International Trading of which the amountofimportorexportisbelowUSD45,000,000.00andShenJingmaoXinxiYusuanZi[2014]No.146-ReportingGuidelines
forSupportingImprovingtheAbilityof InternationalTrading
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
(14) Third class prize of Concept Group of the Governor Cup was obtained according to Shen Jingmao YusuanZi[2015] No.163-Notice about Issuing Shenzhen Famous Industrial Designing Prize in 2015 by Shenzhen Economy& Trade and InformationCommission.
(15) Subsidy for Commerce Circulation of Shenzhen Economy,Trade and Information Commission was obtained according toShenJingmaoXinxiShichangZi[2015]No.177-NoticeaboutIssuingSubsidyforEconomyandTradeStatisticsandInformation Reportingof MarketMonitoring.
42. Non-operatingexpenses
Amountincludedin Item 2015 2014 non-recurringprofitor lossincurrentyear Lossonnon-currentassetsdisposal 59,880.75 115,045.74 59,880.75 Incl.lossonfixedassetsdisposal 59,880.75 115,045.74 59,880.75 Externaldonation 608,200.00 500,000.00 608,200.00 Others 462,946.58 476,449.24 462,946.58 Total 1,131,027.33 1,091,494.98 1,131,027.33 43. Incometaxexpenses
(1)Detailsof incometaxesexpenses
Item 2015 2014
Currentincometax 28,719,188.67 40,801,328.57 Deferredincometax -15,232,647.06 -16,509,941.80 Total 13,486,541.61 24,291,386.77 (2)Reconciliationbetweenincometaxexpensesandaccountingprofitsisasfollows:
Item 2015 2014
Profitbeforetax 135,530,222.34 170,394,619.99 Incometaxexpensescalculatedatlegal(orapplicable)taxrate
33,882,555.59 42,598,655.01(profitbeforetax*25%)
Impactfromtaxpreferentialrateincertainsubsidiaries -18,398,179.94 -19,295,365.00 Adjustmentforincometaxinprioryear 500,784.84 236,881.91 Gains or losses in joint venture and associates entities in
-207,953.04 212,045.05 equitymethod
Incomenotsubjecttotax - - Expensesnotdeductiblefortaxpurposes 731,684.90 2,690,102.26 Effectof taxratechangeonopeningdeferredtax - 22,285.47 Taxationinfluence byusingunrecognized deductibleloss and
-250,766.51 - deductibletemporarydifferenceof priorperiods(“-”)
Taxation influence of unrecognized deductible loss and
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Taxation influence from additional deduction ofR&D
-2,771,584.23 -2,173,217.93 expenses(“-”)
Others - - Incometaxexpenses 13,486,541.61 24,291,386.77 44. Notestocashflowstatement
(1)Cashreceivedfromotheroperatingactivities
Item 2015 2014
Productpromotionfee 22,758,667.54 21,243,620.58 Governmentgrant 10,989,579.23 10,914,542.00 Securitydeposit 2,440,915.22 1,923,147.28 Interestincome 1,997,798.65 1,750,775.15 Pettycash 56,039.62 22,950.38 Others 3,017,213.86 3,439,061.96 Total 41,260,214.12 39,294,097.35 (2)Cashpaidtootheroperatingactivities
Item 2015 2014
Marketingpromotionfee 78,338,971.48 77,443,856.52 Rental 63,610,470.17 73,952,825.98 Advertisingfee 48,741,600.33 51,847,512.57 Departmentalstoreexpenses 39,025,574.70 33,927,340.50 Travelexpenses 18,058,641.50 15,544,104.75R&Dexpenses 15,655,827.82 13,908,494.97 Officeexpenses 12,486,686.57 10,454,837.21 Exhibitionexpenses 10,675,009.25 14,733,436.45 Utilities 9,200,243.52 9,604,220.48 Transportationexpenses 8,976,276.33 8,020,282.83 Businessentertainment 7,248,539.21 8,044,877.78 6,574,954.85 5,185,100.10 Postingandtelecommunicationexpenses
4,913,593.92 1,652,626.49 Packingexpenses
3,052,469.63 2,636,497.78 Vehicleexpenses
3,011,959.23 2,943,855.87 Insuranceexpense
2,434,924.13 1,659,064.16 Clothingexpense
2,325,196.69 2,076,535.47 Maintenanceexpense
2,186,252.23 3,607,560.46
Intermediaryagentsexpense
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
2,023,389.06 489,788.03 Consultationexpenses
12,983,352.01 23,821,562.70 Others
Total 351,523,932.63 361,554,381.10 (3)Cashpaidtootherinvestmentactivities
Item 2015 2014
Securitydepositforissuingof letterof guarantee - 1,575,000.00 (4)Cashreceivedfromotherfinancingactivities
Item 2015 2014
Letterof credit 13,500,000.00 - LoansfromAVICIHL - 150,000,000.00 LoansfromCATICInternationalFinanceLimited - 39,683,069.40 Others - 1,328.82 Total 13,500,000.00 189,684,398.22 (5)Cashpaidtootherfinancingactivities
Item 2015 2014
BorrowingstoAvicIntl 150,000,000.00 - Letterof credit 13,500,000.00
Financingbyissuingsharenon-publicexpense 1,582,574.12 - Bankchargesforissuingletterof credit 433,125.00 1,134,375.00 Repaymentof loanstoCATICInternationalFinanceLimited - 39,683,069.40 Capitalinjectionfromminorityshareholders - 1,400,000.00 Others - 31,008.00 Total 165,515,699.12 42,248,452.40 45. SupplementtoCashFlowStatement
(1)SupplementtoCashFlowStatement
Supplement 2015 2014
1. Reconciliation of net profit to cash flow from operating
activities:
Netprofit 122,043,680.73 146,103,233.22 Add:Impairmentforassets 6,253,998.83 2,621,303.29 Depreciationoffixedassetinvestmentproperty 34,146,910.99 30,244,827.05 Amortizationofintangibleassets 1,400,047.31 1,473,045.26 Amortizationoflong-termdeferredexpenses 104,114,182.05 104,243,100.87 Lossesondisposaloffixedassets,intangibleassets,andother
-34,435.32 44,920.98
long-termassets(Gainasin"-")
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Supplement 2015 2014
Lossonretirementoffixedassets (Gainasin"-") - - Lossonchangesoffairvalue(Gainasin"-") - - Financialexpenses(Gainasin"-") 86,226,890.36 97,054,480.66 Investmentlosses(Gainasin"-") -831,812.14 848,180.21 Decreaseindeferredtaxassets(Increaseasin"-") -15,232,647.06 -16,509,941.81 Increaseindeferredtaxliabilities(Decreaseasin"-") - - Decreaseininventories(Increaseasin"-") 37,457,546.34 -3,088,502.66 Decreaseinoperatingreceivables(Increaseasin"-") 40,599,512.23 -24,932,633.93 Increaseinoperatingpayables(Decreaseasin"-") -19,906,881.91 -48,912,382.17 Others - - Netcashflowsfromoperatingactivities 396,236,992.41 289,189,630.97 2. Significant investment or financing activities not involving
cash:
Debtsconvertedtocapital 1. - - Convertibledebtsmaturewithinoneyear 2. - - Fixedassetsacquiredunderfinanceleases 3. - - 3.Netincrease/(decrease)incashandcashequivalents:
Cashasat31/12/2015 637,387,875.93 114,880,070.54 Less:cashasat31/12/2014 114,880,070.54 107,663,110.74 Plus:cashequivalentsasat31/12/2015 - - Less:cashequivalentsasat31/12/2014 - - Netincreaseincashandcashequivalents 522,507,805.39 7,216,959.80 (2)Cashandcashequivalents
Item 2015 2014
5. 637,387,875. 6. 114,880,070. 4. I.Cash
93 54 7. 387,241.40 8. 338,694.81 Incl.Cashonhand
9. 636,995,113. 10. 114,319,146. Bankdepositavailableforimmediatepayment
67 38 Othermonetaryfundsavailableforimmediate
11. 5,520.86 12. 222,229.35 payment
13. DuefromtheCentralBankavailableforpayment 14. - 15. - 16. II.Cashequivalents 17. - 18. - 19. Incl.Bondinvestmentdueinthreemonths 20. - 21. - 23. 637,387,875. 24. 114,880,070. 22. III.Cashandcashequivalentsasat31/12/2015
93 54 46. Assetsof restrictedownershiporuserights
Item Amount Restriction reason
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Currencyfunds 1,575,000.00 Security deposit Fixedassets 20,007,240.87 Guarantee Total 21,582,240.87
47. IteminForeigncurrency
(1)IteminForeigncurrency
Balancedenominatedin
Translation BalancetranslatedinRMB Items foreigncurrencyasat
rate asat31/12/2015 31/12/2015
Currencyfund
Incl.：USD 165,865.86 6.4936 1,077,066.98 HKD 7,464,174.76 0.8378 6,253,481.37 EUR 24.45 7.0952 173.48 CHF 124,477.41 6.4018 796,879.49 Accountsreceivable
Incl.:HKD 7,702,398.08 0.8378 6,453,069.11 Prepayment
Incl.:HKD 14,028,308.80 0.8378 11,752,917.11 CHF 2,906,588.08 6.4018 18,607,395.57 Otherreceivables
Incl.:USD
HKD 246,494.00 0.8378 206,512.67 EUR 193.52 7.0952 1,373.06 CHF 3,583.42 6.4018 22,940.34 Accountspayable
Incl.:HKD 19,424,929.18 0.8378 16,274,205.67 CHF 251,707.44 6.4018 1,611,380.69 Advancesfromcustomer
Incl.:HKD 7,693.92 0.8378 6,445.97 Otherpayables
Incl.:HKD 2,701,499.80 0.8378 2,263,316.53 CHF 51,308.75 6.4018 328,468.36 Short-termbankloan
Incl.:HKD 79,000,000.00 0.8378 66,186,200.00 Non-currentliabilitydueinoneyear
Incl.:HKD 130,000,000.00 0.8378 108,914,000.00
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Long-termbankloan
Incl.:HKD 20,519,821.35 0.8378 17,191,506.33 CHF 850,000.00 6.4018 5,441,530.00 (2)Overseasoperationalentity
Formainbusinesslocationandrecordingcurrencyof importantoverseasoperationalentity,refertoNoteIII.4.
VI.Changesof consolidationscope
ProTopLimitedwasderegisteredin2015,therefore,itwasexcludedoutof thescopeof consolidationattheyearend.
VII.Equityinotherentities
1. Equityinsubsidiaries
(1)Structureof enterprisegroup
Main Shareholdingratio%
Place of re Natureof
Nameof subsidiary business Waysacquired gistration business
Direct Indirect
location
Establishment HARMONYCompany Shenzhen Shenzhen Commerce 100.00 -
orinvestment Manufacturing Establishment Shenzhen Shenzhen Manufacture 90.00 10.00
Company orinvestment Hong Establishment FIYTAHongKong HongKong Commerce 100.00 -
Kong orinvestment Hong Establishment Station68 HongKong Commerce - 60.00
Kong orinvestment Establishment HarbinCompany Harbin Harbin Commerce 25.00 75.00
orinvestment Establishment HengliandaCompany Beijing Beijing Commerce - 100.00
orinvestment Establishment TechnologyCompany Shenzhen Shenzhen Manufacture 100.00 -
orinvestment Establishment TradingCompany Shenzhen Shenzhen Commerce 100.00 -
orinvestment Establishment CultureCompany Shenzhen Shenzhen Commerce - 100.00
orinvestment EmileChoureit Establishment Shenzhen Shenzhen Commerce - 100.00
ShenzhenCompany orinvestment WorldWatches Hong Establishment HongKong Commerce - 100.00
International Kong orinvestment Establishment SalesCompany Shenzhen Shenzhen Commerce 100.00 -
orinvestment Business combination HengdaruiCompany Shenyang Shenyang Commerce - 100.00
undercommon control Business combination LishanDepartment
Kunming Kunming Commerce - 100.00 notunder Store
common control Business combination Switzerlan
SwissCompany Switzerland Commerce - 100.00 notunder d
common
control
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Hong
NatureArtLimited HongKong Commerce - - ① Kong
Note:
①AccordingtotheequitytrustagreementsignedbyandbetweenStation68,asubsidiaryof FIYTAHongKong,andthetrustee of ProTopLimited on10December 2009, Station68, asthetrustor,ownsshares,stockrightsand related rightsof NatureArt Limited and ProTopLimited, and both parties agree that trustee maytransfer itsright anytime according to the instructions of trustor.Therefore,Station68ownsthecontrolrightof NatureArtLimitedandProTopLimited,andincludethemintoitsscope of consolidation. ProTop Limited was deregistered in 2015 and excluded out of the scope of consolidation at the end of the period.
2. Equityinjointarrangementorassociated
(1)Significantjointventureorassociate
Shareholding Accounting Principal
Registratio Business ratio(%) treatmentforjoint Name placeof
nplace naure venturesor business
Direct Indirect
associates 1 Associatecompany
ShanghaiWatch Shanghai Shanghai Manufacture 25.00 - Equitymethod (2)Principalfinancialinformationofsignificantassociatecompany:
ShanghaiWatch
Item
31/12/2015 31/12/2014 Currentassets 85,404,253.13 88,551,483.42 Non-currentassets 20,902,422.63 22,504,083.78 Totalassets 106,306,675.76 111,055,567.20 Currentliabilities 9,638,478.88 18,718,641.86 Non-currentliabilities - - Totalliabilities 9,638,478.88 18,718,641.86 Netassets 96,668,196.88 92,336,925.34Incl.：Minorityshareholders’interests - -Owners’ equity attributable to parent
- - company
Share of net assets calculated as shareholding
24,167,049.22 22,622,546.71percentage%
Adjustmentmatters - - Incl.:goodwill - - Unrealized profit or losses from internal
- - transaction
Impairmentprovision - - Others - - Bookvalueof investmenttoassociate 43,221,572.05 42,389,759.91 Fairvalueof equityinvestmentwithexisting
- - publicquotation
Continued：
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
ShanghaiWatch
Item
31/12/2015 31/12/2014 Operatingincome 91,465,902.16 105,335,016.70 Netprofit 3,327,248.55 10,080,270.97 Othercomprehensiveincome - - Totalcomprehensiveincome 3,327,248.55 10,080,270.97 VIII.Financialinstrumentsandriskmanagement
Main financial instruments of the group include monetary fund, account receivable, notes receivable, other receivables, other current assets, available-for-sale financial assets, account payable, interest payable, dividend payables, other payables, short-term loan,non-currentliabilitiesinoneyear,long-termloan,bondpayable.TheGrouphasdiscloseddetailsof financialinstrumentsin related notes. Risks related to those financial instruments and risk management policies adopted to reduce those risks are describedasbelow.TheGroupmanagementlayermanagesandsupervisestheriskexposuretoensurerisksarecontrolledwithin limitedrange.
1. Riskmanagementgoalsandpolicies
Thegoalof riskmanagementistokeepproperbalancebetweenriskandprofit,toreducenegativeinfluenceof financialriskto financial performance of the Group. Based on the goal, the Group has formulated risk management policies to identify and analyze risks the Group faces, set proper acceptable risk level and design relevant internal control procedures,to supervise risk level. The Group will regularly review those risk management policies and relevant internal control system, to adapt to market situation and change of operating activities. The internal audit department of the Group will also regularly or randomly check whethertheexecutionof internalcontrolsystemcomplieswithriskmanagementpolicies.
Mainrisksfinancialinstrumentsof theGroupmayleadtoincludecreditrisks,liquidityrisk,marketrisk,etc...
(1)Creditrisk
Credit risk refers to the risk of financial loss of the Group caused due to default of contract obligation of transaction counterparty.
TheGroupmanagescreditriskbyportfolio.Creditriskmainlyarisesfrombankdepositandaccountsreceivable.
Bank deposit of the Group is mainly in state-owned banks and other large and medium listed banks. There are no significant creditrisksof estimatedbankdeposits.
Asforaccountsreceivable,theGroupsetsrelevantpoliciestocontrolcreditriskexposure.Basedonthefinancialstatusof debtor, externalrating,guaranteepossibility,creditrecordgainedfromthethirdpartyandotherfactorssuchascurrentmarketstatus,the Group evaluates credit qualification of debtor and set corresponding debt limit and credit period. The Group will regularly supervisecredit record of debtor.For debtor with bad credit record, theGroup willensure the whole credit risk of the Group withincontrollablerangeintheformsof writtenreminderletter,reducingcreditperiodandcancellingcreditperiod.
ThebiggestcreditriskexposureundertakenbytheGroupiscarryingamountof eachfinancialassetinbalancesheet.TheGroup setsguaranteestoanyothercreditrisksthattheGroupmaybear.
Foramountof accountsreceivable,thetotalaccountsreceivableoftop5accountswithamountinarrearaccountfor7.98%of total accounts receivable of the Group(2014：9.02%); in other accounts receivable, the total accounts receivable of top 5accountswithamountinarrearaccountfor17.79%of totalaccountsreceivableoftheGroup(2014:17.22%).
(2)Liquidityrisk
Liquidityriskreferstoriskof capitalshortagecausedwhentheGroupexecutesobligationsof settlementinthemannerof cash paymentorotherfinancialassets.
Inmanagingliquidityrisk,theGroupkeepsthecashandcashequivalentsthat theGroupdeemssufficientandcontrolsthemto meetoperatingneeds,reduceinfluenceof cashliquidityfluctuation.TheGroupmanagementmonitorstheuseof bankloansand ensures to comply with borrowing agreement. At the same time, the Group gains the commitment for providing sufficient reservefundsfrommainfinancialinstitutions,tomeetshort-termandlong-termcapitalneeds.
The Group finances working capital through capital and bank and other borrowings incurred in business operation. As at 31
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
December 2015, bank borrowing facility that the Group has not yet used is RMB886,288,400. (31 December 2014: RMB539,100,000)
Maturityanalysisof financialassets,financialliabilitiesandoff-balance-sheetguaranteeitemsbyundiscountedremainingcontract cashflowattheendof theperiod(Unit:RMB0,000):
31/12/2015
Item
Within1year 1to2years 2to3years Over3years Total Financialassets:
Cashandbankbalance 63,896.29 - - - 63,896.29 Notesreceivable 719.78 - - - 719.78 Accountsreceivable 31,258.19 - - - 31,258.19 Otherreceivables 4,261.98 - - - 4,261.98 Othercurrentassets 1,579.68 - - - 1,579.68 Othernon-currentassets 511.88 - - - 511.88 Totalfinancialassets 102,227.80 - - - 102,227.80Financialliabilities：
Short-termloans 98,818.62 - - - 98,818.62 Accountspayable 15,593.97 - - - 15,593.97 Payableinterest 1,921.16 - - - 1,921.16 Otherpayables 4,813.16 - - - 4,813.16 Othercurrentliabilities(excluding
198.83 - - - 198.83 deferredincome)
Non-currentliabilitiesdueinoneyear 10,891.40 - - - 10,891.40 Long-termloan - 2,255.35 2,000.00 4,844.15 9,099.50 Bondspayable 40,000.00 - - - 40,000.00 Financialguarantee - - 39,710.02 1,675.60 41,385.62 Totalof financialliabilityand
172,237.14 2,255.35 41,710.02 6,519.75 222,722.26 contingentliability
Maturityanalysisof financialassets,financialliabilitiesandoff-balance-sheetguaranteeitemsbyundiscountedremainingcontract cashflowatthebeginningof theperiod(Unit:RMBtenthousands):
31/12/2014
Item
Within1year 1to2years 2to3years Over3years Total Financialassets:
Cashandbankbalance 11,645.51 - - - 11,645.51 Notesreceivable 616.28 - - - 616.28 Accountsreceivable 35,994.06 - - - 35,994.06 Otherreceivables 4,444.94 - - - 4,444.94
Othercurrentassets 1,442.15 - - - 1,442.15
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Othernon-currentassets 3,150.00 - - - 3,150.00 Totalfinancialassets 57,292.94 - - - 57,292.94Financialliabilities：
Short-termloans 98,944.50 - - - 98,944.50 Accountspayable 14,711.91 - - - 14,711.91 Payableinterest 1,942.09 - - - 1,942.09 Otherpayables 18,857.49 - - - 18,857.49 Othercurrentliabilities(excluding
548.25 - - - 548.25 deferredincome)
Long-termloan - 7,925.19 4,444.50 1,625.55 13,995.24 Bondspayable - 40,000.00 - - 40,000.00 Financialguarantee 3,944.50 7,889.00 30,644.50 - 42,478.00 Totalof financialliabilityand
138,948.74 55,814.19 35,089.00 1,625.55 231,477.48 contingentliability
Theamountof financialassetandfinancialliabilitydisclosedintheabovetableisundiscountedcontractcashflowandthusmay bedifferentwiththecarryingamountof balancesheet.
(3)Marketrisk
Marketriskreferstotheriskof fluctuationof fairvalueorfuturecashflowof financialinstrumentscausedduetomarketprice change,includinginterestrisk,exchangerateriskandotherpricerisk.
Interestrisk
Interest risk refers to the risk of fluctuation of fair value or future cash flow of financial instruments caused due to interest change.Interest risk mayarisefrom confirmed interest accrual financial instrument and unconfirmed financialinstrument (such assomeloancommitments)
Theinterestriskof theGroupmainlyarisesfromlong-term bankloansandbondspayable andlong-term interest-bearingdebt. Financial liabilities with floating rate lead the Group to cash flow interest risk. Fixed interest rate financial liabilities lead the Grouptofairvalueinterestrisk.AccordingtocurrentmarketenvironmenttheGroupdeterminestheproportionof fixedinterest andfloating interest ratecontract, maintaining proper fixedandfloating interest instrument combination throughregularreview andsupervision.
As at 31 December 2015, if borrowing rate measured at floating rate rises or drops 50 base points, and other factors keep unchanged, net profit andshareholders’ equity of the Group will decrease or increase about RMB1,311,100(at 31 December 2014:RMB700,000).
Exchangeraterisk
Exchange rate risk refers to the risk of fluctuation of fair value or future cash flow of financial instruments caused due to exchange rate change. Exchange rate risk may arise from the financial instrument measured at foreign currencies other than recordingcurrency.
Mainoperation of theGroup iswithin China, and main businesses are settled inRMB.Therefore, themarket risk of exchange fluctuationsundertakenbytheCompanyisnotsignificant.
Refer to Details of other foreign currencies of Notes to the Financial Statement for financial assets of foreign currencies and financialliabilitiesof foreigncurrenciesattheendof theperiod.
2. Capitalmanagement
The capital management policies of the Group are formulated to guarantee the Group can keep operation, and thus provide returnstoshareholdersandbenefitotherstakeholders,andatthesametimetokeeptheoptimalcapitalstructuretoreducecapital cost.
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
To keep or adjust capital structure, the Group may adjust amounts of dividends paid for shareholders, return capital to shareholders,issuenewsharesorsellassetstoreducedebts.
The Group monitors capital structure based on asset liability ratio (total liabilities divided by total assets). As at 31 December 2015,theasset-liabilityratiooftheGroupis45.77%(31December2014:55.26%).
IX.Fairvalue
Fairvaluelevelcanbeclassifiedaccordingtotheinputvalueof thelowestlevelthatissignificanttowholemeasurementof fair value:
Firstlevel:quoteof sameassetsorliabilitiesinanactivemarket(unadjusted).
Second level: directly (price) or indirectly (derive from price) use observable input value other than market quote of assets or liabilitiesinthefirstlevel.
Thirdlevel:useanyinputvaluenotbasedonobservablemarketdatainassetsorliabilities(unobservableinputvalue).
(1)Itemsandamountsmeasuredatfairvalue
Asat31December2015,therearenoassetsandliabilitiesmeasuredatfairvalue.
(2)Itemsandamountsnotmeasuredatfairvaluebutwithfairvaluedisclosed
Financial assets and financial liabilities measured at amortized cost mainly include: cash and bank balances, notes receivable, accountsreceivable,otherreceivables,short-termloans,notespayable,accountspayable,otherpayables,long-termpayables,etc. Thedifferencebetweenthebookvalueof financialassetsandfinancialliabilitiesthatarenotmeasuredatfairvalueandfairvalue issmall.
X.Relatedpartyrelationshipandtransactions
1.Detailsof theparentcompanyof theCompany
Shareholding
Ratioof voteright Registration Registered ratioof parent
Name Typeof business of parentcompany place capital companytothe
totheCompany%Company%
investmentin
industries,
ChinaNational
Shenzhen domestictrade, 1,166,161,996.00 37.15 37.15 AviationGroup
materialsupply
anddistribution
Theultimatecontrolpartyof theCompanyis:
CATIC Shenzhen Company holds33.93% shareholding of China National Aviation Group. CATIC Shenzhen Company is a whollyownedsubsidiaryof ChinaAeroSpaceInternationalHoldingsLimited(CASI),andChinaAviationIndustryCorporation(AVIC)directlyholds62.52%of theequityof CASI.Therefore,theultimatecontrollingpartyof theCompanyisAVIC. 2.Subsidiaries
Detailsof subsidiariesrefertoNoteVII.1.
3.Jointventureandassociation
Detailsof jointventuresandassociatesrefertoNoteVII.2.
4.Otherrelatedparties
Name RelationshipwiththeGroup ShenzhenCATICPropertyManagementLimited(CATICPropertyManagement) Controlledbythesameparty ShenzhenCATICBuildingEquipmentCo.,Ltd.(CATICBuildingCompany) Controlledbythesameparty
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Name RelationshipwiththeGroup RainbowDepartmentStoreCo.,Ltd.(RainbowDepartmentStore) Controlledbythesameparty ShennanCircuitsCo.,Ltd.(ShennanCircuits) Controlledbythesameparty CATICRealEstateCompany Controlledbythesameparty AVICSecuritiesCo.,Ltd.(AVICSecuritiesCompany) ControlledbythesamepartyXi’anSkytelHotelCo.,Ltd.(SkytelHotel) Controlledbythesameparty ShenzhenAVICNanguangElevatorCo.,Ltd.(AVICNanguangCompany) Controlledbythesameparty ShenzhenCATICCityRealEstateDevelopmentCo.,Ltd.(CATICCityRealEstate
Controlledbythesameparty Company)
ShenzhenCATICCityDevelopmentCo.,Ltd.(CATICCityDevelopmentCompany) Controlledbythesameparty CATICGuanlanPropertyDevelopmentCo.,Ltd.(CATICMissionHillsProperty) Controlledbythesameparty CATICChangtaiInvestmentDevelopmentCo.,Ltd.(CATICChangtaiCompany) Controlledbythesameparty ShenzhenCATICJiufangAssetManagementLimited(CATICJiufangAssetMgmt
Controlledbythesameparty Company)
GanzhouCATICRealEstateDevelopmentCo.,Ltd.(GanzhouCATICRealEstate
Controlledbythesameparty Company)
ShenzhenCATICCityInvestmentCo.,Ltd(CATICCityInvestment) Controlledbythesameparty ChengduCATICPropertyDevelopmentCo.,Ltd(ChengduCATICPropertyCompany) Controlledbythesameparty ZhonghangElectronicMeasuringInstrumentsCo.,Ltd(ZhonghangElectronicCompany) Controlledbythesameparty ShenzhenCATICThemeReal-estateCo.,Ltd(CATICThemeCompany) Controlledbythesameparty ShenzhenAVICTrainingCenter(AVICTrainingCenter) Controlledbythesameparty GanzhouCATIC9SquareTradingCo,Ltd(Ganzhou9SquareCompany) Controlledbythesameparty JiujiangCATICCityEstateCo,Ltd(JiujiangCATICEstateCompany) Controlledbythesameparty CATICCityEstate(Kunshan)Co,Ltd(KunshanCompany) Controlledbythesameparty Shenzhen CATIC Huacheng Real Estate Development Co, Ltd (CATIC Huacheng
Controlledbythesameparty Company)
ShenzhenCATICCurtainCo,Ltd(CATICCurtainCompany) Controlledbythesameparty CATIC Technical International Development Co, Ltd (CATIC Tech. Development
Controlledbythesameparty Company)
AVICFinanceCo.,Ltd.(AVICFinanceCompany) Controlledbythesameparty DiaoWeicheng Keymanagementmember XuDongsheng Keymanagementmember WangMingchuan Keymanagementmember LiuAiyi Keymanagementmember ZhongSijun Keymanagementmember CaoZhen Keymanagementmember HuangYongfeng Keymanagementmember ZhangHongguang Keymanagementmember ZhangShunwen Keymanagementmember WangYan Keymanagementmember SuiYong Keymanagementmember
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Name RelationshipwiththeGroup TangBoxue Keymanagementmember ChenZhuo Keymanagementmember ChenLibin Keymanagementmember LuBingqiang Keymanagementmember DuXi Keymanagementmember LuWanjun Keymanagementmember HuXinglong Keymanagementmember 5.Transactionswithrelatedparties
(1)Detailsof relatedpartypurchaseandsale
①Purchasinggoodsandreceivingservices
Relatedparty Typeof transaction 2015 2014 Departmentstore
RainbowDepartmentStore 4,457,644.68 3,549,567.71 expenses
CATICPropertyManagement Propertymanagement 3,236,163.68 1,356,088.67 AVICTrainingcenter Training 107,296.20 146,420.76 CATIC curtain wall engineering co.,
Engineering 198,113.16 - Ltd.
CATICBuildingco.,Ltd. Engineering 281,621.61 - CATIC Technical Development co.,
Engineering 100,000.00 - Ltd.
CATICNanguangco.,Ltd. Engineering 163,913.80 - ShanghaiWatch Materialpurchase 132,051.28 2,554,285.26 AVICSecuritiesCompany Securitiesunderwritingfee 7,250,000.00 - ZhonghangElectronicCompany ProcessingCharges - 15,068.38②Sellingproductsandprovidingservices
Relatedparty Typeof transaction 2015 2014 RainbowDepartment
Productsalesandservices 81,677,865.75 81,841,738.79 Store
AVIC Productsales 485,755.56 1,075,012.82 ShennanCircuits Materialsales 11,668,906.38 24,363,526.18 (2)Lease
①TheGroupasleaser
Recognizedrentalincome Recognizedrentalincome Lessee Typeofleasedassets
incurrentperiod inpriorperiod CATICRealEstateCompany Property 1,569,802.84 1,508,832.00 CATICProperty
Property 6,516,962.97 7,282,960.71
Management
AVICSecuritiesCompany Property 1,139,550.00 1,088,430.00
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
CATICCityDevelopment Property 23,221.94 22,320.00 Company
CATICHuachengCompany Property 277,419.12 - CATICCityRealEstate
Property 376,300.82 22,320.00 Company
CATICGuanlanProperty Property 92,887.74 89,280.00 CATICChangtaiCompany Property 480,384.00 1,285,632.00 SkytelHotel Property 4,700,000.00 4,499,900.00 RainbowDepartmentStore Property 465,520.04 452,800.04 CATICJiufangAssetMgmt
Property 363,636.00 363,636.00 Company
CATICCityInvestment Property 950,861.29 90,024.00 CATICThemeCompany Property 353,338.00 945,624.00 CATICTechnology
Property - 210,270.00 ShenzhenCompany
2 TheGroupaslessee
Lesser Typeofleasedassets
Rentalexpenseschargedin Rentalexpenseschargedin currentperiod priorperiod GanzhouCATICRealEstate
Property 1,029,856.96 995,408.16 Company
CATICChangtaiCompany Property 208,433.59 - JiujiangCATICEstate
Property 321,880.50 - Company
KunshanCompany Property 33,272.96 - ChengduCATICProperty
Property 1,206.09 816,017.05 Company
(3)Guaranteesprovided
①TheGroupasguarantor
Guarantee Guarantee Amount Effectivedate Expiringdate obligationexpired (Yes/No) HARMONYCompany 2,000,000.00 2015-1-13 2018-1-12 No HARMONYCompany 50,000,000.00 2015-11-20 2018-11-19 No HARMONYCompany 60,000,000.00 2015-12-2 2018-12-1 No HARMONYCompany 100,000,000.00 2015-12-2 2018-8-12 No Manufacturing
10,000,000.00 2015-8-7 2018-8-7 No Company
FIYTAHongKong 4,189,000.00 2015-3-12 2018-3-14 No FIYTAHongKong 5,026,800.00 2015-4-2 2018-4-1 No FIYTAHongKong 5,864,600.00 2015-7-9 2018-7-8 No FIYTAHongKong 8,378,000.00 2015-8-4 2018-8-3 No FIYTAHongKong 13,404,800.00 2015-9-14 2018-9-13 No FIYTAHongKong 10,053,600.00 2015-9-15 2018-9-14 No
FIYTAHongKong 19,269,400.00 2015-9-16 2018-9-15 No
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Guarantee Guarantee Amount Effectivedate Expiringdate obligationexpired (Yes/No) FIYTAHongKong 41,890,000.00 2013-7-11 2018-7-11 No FIYTAHongKong 41,890,000.00 2013-8-5 2018-8-5 No FIYTAHongKong 16,756,000.00 2014-1-6 2018-7-11 No FIYTAHongKong 8,378,000.00 2014-1-27 2018-7-11 No FIYTAHongKong 16,756,000.00 2014-3-3 2019-1-11 No②TheGroupasguarantee
Guarantee Guarantee Amount Effectivedate Expiringdate obligationexpired (Yes/No) ChinaNational
361,928.00 2013-12-24 2018-12-24 No AviationGroup
ChinaNational
5,000,000.00 2014-1-15 2019-6-24 No AviationGroup
ChinaNational
10,000,000.00 2014-9-5 2020-6-24 No AviationGroup
ChinaNational
10,000,000.00 2015-1-8 2020-6-24 No AviationGroup
ChinaNational
20,000,000.00 2015-1-26 2021-6-24 No AviationGroup
ChinaNational
6,000,000.00 2015-5-27 2021-6-24 No AviationGroup
ChinaNational
10,000,000.00 2015-10-28 2021-6-24 No AviationGroup
ChinaNational
7,000,000.00 2015-12-1 2021-12-24 No AviationGroup
CATIC Technology
400,000,000.00 2013-2-27 2018-8-26 No ShenzhenCompany
HARMONYCompany 50,000,000.00 2015-10-23 2018-10-23 No (4)Relatedpartyborrowing
TheGrouprepaidloanof RMB150,000,000toChinaNationalAviationGroupincurrentyear.
(5)Others
The year-end balance of theGroup’s cash is RMB1,002,871.65, whichis deposited with AVIC Finance Company.The interests receivedfromthedepositareRMB2,871.65.
(6)Remunerationforkeymanagementmembers
Thereare18keymanagementmembersinthereportingperiodand14keymanagementmembersinprior reportingperiod.See thefollowingtablefordetailedremuneration:
Item 2015 2014
Remunerationforkey
11,462,400.00 13,818,900.00 managementmembers
6.Receivablesfromandpayablestorelatedparties
(1)Receivables
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
31/12/2015 31/12/2014
Item Relatedparty
Carrying Baddebt Carrying Baddebt amount provision amount provision Accounts RainbowDepartment
8,012,826.57 400,641.33 2,134,424.46 106,721.22 receivable Store
ShennanCircuits 1,474,023.97 73,701.20 1,477,311.21 73,865.56 Ganzhou 9 Square
289,621.00 14,481.05 - - Company
AVIC 13,500.00 675.00 524,313.00 68,144.58 ChengduCATICProperty
- - 7,875.00 393.75 Company
Notesreceivable ShennanCircuits 5,697,788.08 - 6,162,768.29 - Otherreceivable
RainbowDepartment
563,140.00 28,157.00 308,001.60 15,400.08 Store
CATICProperty
225,853.69 11,292.68 - - Management
Ganzhou 9 Square
122,665.60 6,133.28 - - Company
ChengduCATICProperty
115,616.40 5,780.82 115,616.40 5,780.82 Company
CATICChangtaiCompany 50,000.00 2,500.00 50,000.00 2,500.00 JiujiangCATICEstate
50,000.00 2,500.00 - - Company
KunshanCompany 37,120.00 1,856.00 - - GanzhouCATICReal
- - 172,665.60 14,766.56 EstateCompany
(2)Payables
Item Relatedparty 31/12/2015 31/12/2014 Accountspayable ShanghaiWatch - 647,691.97 Advancesfromcustomer
CATICRealEstate
133,848.00 - Company
Otherpayables
CATICProperty
472,032.00 - Management
CATICRealEstate
424,800.00 424,800.00 Company
CATICCityInvestment
244,068.00 37,700.00 Company
AVICSecuritiesCompany 187,440.00 187,440.00 CATIC City Real Estate
97,912.32 - Company
CATICHuachengCompany 73,819.68 - CATICJiufangAssetMgmt
60,606.00 60,606.00 Company
RainbowDepartmentStore 60,000.00 60,000.00 ChengduCATICSunshine
16,492.75 114,648.52 RealEstateCompany
CATICBuildingCompany 9,630.00 - CATIC City Development
3,960.00 - Company
AVICIHL - 150,000,000.00 CATICChangtaiCompany - 221,712.00
XI.Commitmentsandcontingencies
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
1.Significantcommitments
(1)Capitalcommitment
Contractalreadysignedbutnotyetrecognizedinthefinancial
31/12/2015 31/12/2014 statements
Long-termassetsconstructioncommitment 112,495,477.39 187,127,768.52 (2)Operatingleasecommitment
Asof thebalancesheetdate,theirrevocableoperatingleasecontractssignedbytheCompanyareasfollows:
Theminimumleasepaymentforirrevocable
31/12/2015 31/12/2014 operatinglease:
The1styearafterthebalancesheetday 19,070,208.30 28,940,871.89 The2ndyearafterthebalancesheetday 12,683,143.50 18,388,748.63 The3rdyearafterthebalancesheetday 6,603,532.25 8,702,855.74 After3years 4,116,940.51 3,008,648.97 Total 42,473,824.56 59,041,125.23 (3)Othercommitments
Asat31December,2015,theGrouphasnocommitmentthatshallbedisclosed.
2.Contingencies
(1)Contingentliabilitiesandfinancialinfluenceformedbyprovidingliabilityguaranteetootherunits
Refer to Note X. 5(3) for details of external guarantees entered by companies in the scope of consolidation, and guarantee betweenparentcompanyandsubsidiaries.
(2)Asat31December2015,therearenopendingactions,externalguaranteesandothercontingenciesthatshallbedisclosed. (3)Asat31December2015,thereisnoothercontingencythatshallbedisclosed.
XII.Postbalancesheetdateevents
1.Profitdistributionafterbalancesheetdate
Proposedprofitdistributionordividend 43,874,488.10 Profitdistributionordividendthatwasapprovedanddeclared 43,874,488.10 Theresolutionof 2015profitdistributionproposalhasbeenpassedonthe6thBoardMeetingof the8thBoardof Directorson 8March2016.Itproposedtodistributecashdividendof RMB1.00(taxinclusive)forevery10sharesheldbyshareholdersbased on the total 438,744,881 shares as at 31 December 2015. Cash dividend that proposed to be distributed amounts toRMB43,874,488.10TheproposalissubjecttoapprovalfromAnnualGeneralShareholders’Meeting.
2.Othereventsafterbalancesheetdate
(1)Theredemptionandde-listingof “12FIYTADebt”wasfinishedbytheCompanyon29February2016.Accordingtorelated articlesin“Prospectusof PublicOfferingof DebenturebyFIYTAHoldingsLtdin2012”,theCompanycandecidewhether to exercise the option of increase coupon rate, callable option or prepayment option. According to the authorization given by the first extraordinary general meetingin 2012,the Board of Directorsdecided toabandontheoption of increase coupon rateand callable option and choose to exercise prepayment option to redeem all “12 FIYTA Debt” that was registered on book on the redemption registration date. The counterparts are all the holders of “12 FIYTA Debt” that was on the register of China SecuritiesDepositoryandClearingCo.,LtdShenzhenBranchaftercloseof businesson26February2016.Theredemptionprice
wasRMB105.04perdebenture(includinginterestsforcurrentperiodandtaxoninterests).
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
(2)Pursuant totheresolutionpassed onthe6thBoard Meetingof the8thBoardof Directors on8March2016,theCompany planstoapplycreditfacilityof nomorethanRMB1,800,000,000.00frombanksinformofguaranteedloan,mortgageloanetc… in2016.TheproposalofcreditfacilityapplicationissubjecttoapprovalfromAnnualGeneralShareholders’Meeting.
(3)Pursuant totheresolutionpassed onthe6thBoard Meetingof the8thBoardof Directors on8March2016,theCompany plans to provide guarantee to theCompany’s wholly-owned subsidiaries for their application of credit facility of no more than RMB1,000,000,000.00in2016.Thiscreditfacilityisincludedinthetotalcreditfacilityof RMB1,800,000,000.00tobeappliedin 2016 mentioned above. The proposal of credit facility application is subject to approval from Annual GeneralShareholders’ Meeting.
(4)Pursuant totheresolutionpassed onthe6thBoard Meetingof the8thBoardof Directors on8March2016,theCompany proposedtoincreasetheregisteredcapitalof SalesCompanybyRMB400,000,000.00.Aftertheincrease,theregisteredcapitalof SalesCompanywillreachRMB450,000,000.00.
XIII.Othersignificantevents
ProTopLimitedperformedderegistrationinHongKongon4December2015.
XIV.Notestotheparentcompany’sfinancialstatements
1.Accountsreceivable
(1)Accountsreceivablebycategories:
31/12/2015
Category
Amount Percentage%
Provisionfor Provision
Netamount baddebts rate%
Receivablesthatareindividually
significantinamountand
- - - - - providedfor baddebt
separately
Receivablesprovidedforbad
- - - - - debtbyportfolio
Incl.:Portfolioofaging - - - - - Portfolioofspecificaccounts - - - - - Subtotalofportfolios - - - - - Receivablesthatareindividually
insignificantinamountbut - - - - - providedforbaddebtseparately
Total - - - - - Accountsreceivablesdisclosedbycategories(continued)
31/12/2014
Category
Amount Percentage%
Provisionfor Provision
Netamount baddebts rate%
Receivablesthatareindividually
significantinamountand
- - - - - providedfor baddebt
separately
Receivablesprovidedforbad
debtbyportfolio
Incl.:Portfolioofaging 11,338,842.00 92.17 566,942.10 5.00 10,771,899.90 Portfolioofspecificaccounts 963,888.00 7.83 - - 963,888.00
Subtotalofportfolios 12,302,730.00 100.00 566,942.10 4.61 11,735,787.90
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
31/12/2014
Category
Amount Percentage%
Provisionfor Provision
Netamount baddebts rate%
Receivablesthatareindividually
insignificantinamountbut - - - - - providedforbaddebtseparately
Total 12,302,730.00 100.00 566,942.10 4.61 11,735,787.90Note：
1 Accountsreceivablethatareprovidedforbaddebtbasedonaginganalysisinagingportfolio:
31/12/2015
Aging
Provisionforbad
Amount Percentage% Provisionrate% Netamount debts
Within1year - - - - - 1to2years - - - - - 2to3years - - - - - Over3years - - - - - Total - - - - - (Continued)
31/12/2014
Aging
Provisionforbad
Amount Percentage% Provisionrate% Netamount debts
Within1year 11,338,842.00 100.00 566,942.10 5.00 10,771,899.90 2 amongtheportfolio,accountsreceivablethatareprovidedforbaddebtusingothermethods
Nameofportfolio Carrying amount Bad debt provision Accrualrate% Portfolioof specific
- - - accounts
(2)Baddebtprovisionsaccrued,receivedorreversedinthecurrentperiod
The amount of Bad debt provision reversed is RMB566,942.10 in current period. There was no received bad debt provision in currentperiod.
2.Otherreceivables
(1)Otherreceivablesdisclosedbycategories:
31/12/2015
Category
Amount
Percentage Provision Provision
Netamount% forbad rate%
Otherreceivablesthatare
individuallysignificantinamount
- - - - - andprovidedfor baddebt
separately
Otherreceivablesprovidedforbad
debtbyportfolio
Incl.:Portfolioofaging 551,048.26 0.04 27,552.41 5.00 523,495.85
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Portfolioofspecificaccounts 1,527,233,321.33 99.96 - - 1,527,233,321.33 Subtotalofportfolios 1,527,784,369.59 100.00 27,552.41 0.00 1,527,756,817.18 Otherreceivablesthatare
individuallyinsignificantinamount - - - - - butprovidedforbaddebtseparately
Total 1,527,784,369.59 100.00 27,552.41 0.00 1,527,756,817.18 Otherreceivablesdisclosedbycategories(continued)
31/12/2014
Category
Amount
Percentag Provision Provision
Netamounte% forbad rate%
Otherreceivablesthatare
individuallysignificantinamount - - - - - andprovidedfor baddebt
separately
Otherreceivablesprovidedforbad
debtbyportfolio
Incl.:Portfolioofaging 283,905.40 0.02 27,484.97 9.68 256,420.43 Portfolioofspecificaccounts 1,524,256,691.23 99.98 - - 1,524,256,691.23 Subtotalofportfolios 1,524,540,596.63 100.00 27,484.97 0.00 1,524,513,111.66 Otherreceivablesthatare
individuallyinsignificantinamount - - - - - butprovidedforbaddebtseparately
Total 1,524,540,596.63 100.00 27,484.97 0.00 1,524,513,111.66Note：
1Amongtheportfolio,otherreceivablesthatareprovidedforbaddebtbasedonaginganalysis：
31/12/2015
Aging
Provisionforbad
Amount Percentage% Provisionrate% Netamount debts
Within1year 551,048.26 100% 27,552.41 5.00 523,495.85 (Continued)
31/12/2014
Aging
Provisionforbad
Amount Percentage% Provisionrate% Netamount debts
Within1year 254,050.00 89.48 12,702.50 5.00 241,347.50 1to2years 363.07 0.13 36.30 10.00 326.77 2to3years - - - - - Over3years 29,492.33 10.39 14,746.17 50.00 14,746.16 Total 283,905.40 100.00 27,484.97 9.68 256,420.43 2 Otherreceivablesthatareprovidedforbaddebtusingothermethod
Nameofportfolio Carrying amount Bad debt provision Accrualrate%
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Portfolioof special
1,527,233,321.33 - - accounts
(2)Baddebtprovisionaccrued,receivedorreversedinthecurrentperiod
Theamountof BaddebtprovisionaccruedisRMB67.44incurrentperiod.Therewasnoreceivedbaddebtprovisionincurrent period.
(3)Otherreceivablesbynature
Item 31/12/2015 31/12/2014
Relatedpartybalanceswithin
1,527,077,899.87 1,523,785,927.87 consolidatedscope
Pettycash 155,421.46 620,763.36 Securitydeposit 64,050.00 64,050.00 Others 486,998.26 69,855.40 Total 1,527,784,369.59 1,524,540,596.63 (4)Accountsreceivableduefromthetopfivedebtorsof theGroupareasfollows:
Percentageintotal
Provision Companyname Nature Balance Aging closingbalanceof forbadotherreceivables(%) and doubtful HARMONY
Transaction 888,239,075.70 Within1year 58.14 - Company
Within1year
323,127,262.68;1-2
SalesCompany Transaction 538,795,392.91 35.27 - years
215,668,130.23
EmileChoureit
Shenzhen Transaction 63,376,616.95 Within1year 4.15 - Company
Within1year3,600;
1-2years
TradingCompany Transaction 24,391,573.36 1.60 - 1,560,450.39;2-3
years22,827,522.97
Within1year
Technology
Transaction 11,127,769.95 11,058,069.95;1-2 0.73 - Company
years69,700
Total 1,525,930,428.87 99.88 - 3.Long-termequityinvestments
31/12/2015 31/12/2014
Item
Carrying Impairment Impairment
Bookvalue Carryingamount Bookvalue amount provision provision
Investmentin
770,899,720.00 - 770,899,720.00 730,799,720.00 - 730,799,720.00 subsidiaries
Investmenttoassociated
43,221,572.05 - 43,221,572.05 42,389,759.91 - 42,389,759.91 companies
Total 814,121,292.05 - 814,121,292.05 773,189,479.91 - 773,189,479.91
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
(1)Investmentinsubsidiaries
Closing Impairm
balance Investedunits 31/12/2014 Increase Decrease 31/12/2015 ent
for provision impairm ent HARMONY
601,307,200.00 - - 601,307,200.00 -
provisio - Company
n HarbinCompany 125,000.00 - - 125,000.00 - - Manufacturing
9,000,000.00 - - 9,000,000.00 - - Company
TechnologyCompany 10,000,000.00 - - 10,000,000.00 - - FIYTAHongKong 55,367,520.00 40,100,000.00 - 95,467,520.00 - - TradeCompany 5,000,000.00 - - 5,000,000.00 - - FIYTASales
50,000,000.00 - - 50,000,000.00 - - Company
Total 730,799,720.00 40,100,000.00 - 770,899,720.00 - -
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
(2)Investmenttojointventureandassociation
Increaseanddecreaseduringtheperiod
Balance of provision Balance Investment Cash Balance
enIn tev re ps rt ie sd
es
asat
in rec co om ge n/ izlo edss Ad oj fu ost tm hee rnt
Changesof
d oi rv pid re on fid
t Provisionfor
asat
impaf io rr ment 31/12/2014 Addition Reduction other Other 31/12/2015
underthe comprehensi announc impairment asat equity
equity veincome edtobe 31/12/2015 method issued
①Associates
ShanghaiWatch 42,389,759.91 - - 831,812.14 - - - - - 43,221,572.05 - Total 42,389,759.91 - - 831,812.14 - - - - - 43,221,572.05 -
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
4.Operatingrevenueandoperatingcost
2015 2014
Item
Revenue Cost Revenue Cost Mainbusinesses 95,422,259.18 14,944,207.19 108,183,860.45 30,576,403.18 Otherbusinesses 12,923.08 8,613.00 - - Total 95,435,182.26 14,952,820.19 108,183,860.45 30,576,403.18 5.Investmentincome
Item 2015 2014
Investmentincomefromlong-termequityinvestmentmeasuredby 131,388,140.58 88,741,300.42 costmethod
Investmentincomefromlong-termequityinvestmentmeasuredby 831,812.14 -848,180.21 equitymethod
Total 132,219,952.72 87,893,120.21 XV.Supplementaryinformation
1.Detailsof non-recurringgainorlossfortheyear
Item
Yearended
Note 31/12/2015
Disposalgainorlossof non-currentassets 34,435.32
Overriddenapproval,orwithoutofficialapprovaldocument,orincidentaltax
-
returnorexemption
Governmentgrantsincludedincurrentprofitorloss(exceptforthefixedor
quantitativegovernmentgrants,enjoyedinaconsecutiveway,whichclosely
10,889,579.23
relatedtotheenterprisebusinessesandaccordingtocertainstatepoliciesandor
onanation-wideunifiedstandard)
Chargesforthepossessionsof fundscollectedfromnon-monetaryenterprises -
Investmentcostof subsidiaries,jointventureandcooperativeenterprisesless
thantheprofitincurredinidentifiablenetassetfairvalueof investedunitwhen -
investment
Profitandlossof non-monetaryassetsexchange -
Profitandlossfromentrustingotherstoinvestormanageassets -
Assetimpairmentprovisionaccruedduetoforcemajeuresuchasnatural
-
disasters
Profitandlossof debtrestructuring -
Enterpriserestructuringexpenses,suchasexpensesforarrangingemployees,,
-
integratingcost
Profitandlossoverfairvaluepartaccruedintransactionsof unreasonable
-
transactionprice
Currentnetprofitandlossof subsidiariesfrombusinesscombinationunder
-
commoncontrolfromtheopeningperiodtocombinationdate
Profitandlossincurredcontingentmattersunrelatedtonormaloperating -
business
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Item
Yearended
Note 31/12/2015
Exceptforeffectivehedgingbusinessrelatedtonormaloperatingbusiness,
profitandlossof fairvalueincurredinfinancialassetsandfinancialliabilities -
measuredatfairvaluethroughcurrentprofitandloss
Investmentprofitobtainedbydisposingfinancialassets,financialliabilitiesand
available-for-salefinancialassetsmeasuredatfairvaluethroughcurrentprofit -
andloss
Impairmentprovisionreversalof accountsreceivable underseparate
-
impairmenttest
Profitandlossobtainedinexternalentrustingloans -
Profitandlossincurredinfairvaluechangeof investmentrealasset
-
subsequentlymeasuredinfairvaluemode
Influenceoncurrentprofitandlosscausedbyone-off adjustmentaccordingto
-
requirementsof lawsandregulationsabouttaxationandaccounting
Incomefromtrusteefeeobtainedbytrustingoperation -
Othernon-operatingincomeandexpensesotherthantheaboveitems -17,790.06
Profitandlossitemspursuanttothedefinitionof non-recurringprofitandloss -
Totalnon-recurringprofitorloss 10,906,224.49
Less：effectof incometaxof non-recurringprofitorloss 2,645,882.96
Netnon-recurringprofitorlosses 8,260,341.53
Less:effectof non-recurringprofitorlossesattributabletominority
-
shareholders(aftertax)
Non-recurringprofitorlossesattributabletoordinaryshareholdersofthe
8,260,341.53
Company
2.ReturnonEquity(ROE)andEarningspershare(EPS)
Weightedaverage EPS
Profitofthereportingperiod
ROE% BasicEPS DilutedEPS
Netprofitattributabletoordinaryshareholdersof
7.24 0.310 - theCompany
Netprofitattributabletoordinaryshareholdersof
6.75 0.289 - theCompanyafterdeductingnon-recurringprofit
orloss
FIYTAHoldingsLtd. 10March2016
FIYTAHoldingsLtd.
NotestotheFinancialStatements
FortheYearEnded31December2015(allamountsinRMBYuanunlessotherwisestated)
Chapter 11 Documents Available for Inspection
I.AccountingStatementssignedbyandunderthesealofthelegalrepresentative,thechiefaccountantandthetreasurer. II. Original oftheAuditors’ Report under the seal of the accounting firm and signed by and under the seals of certified publicaccountants.
III. Originals of all documents and manuscripts of announcements of the Company disclosed in Securities Times and HongKongCommercialDailyasdesignatedbyChinaSecuritiesRegulatoryCommission.