[中报]飞亚达Ｂ(200026):2022年半年度报告（英文版）
原标题:飞亚达Ｂ:2022年半年度报告（英文版） 2022 Semi-annual Report August 20, 2022 Section 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 of this report and confirm that there are neither material omissions nor errors which would render any statement misleading. Zhang Xuhua, the Company leader, Song Yaoming, chief financial officer, and Tian Hui, the manager of the accounting department (treasurer) hereby confirm the authenticity and completeness of the financial report enclosed in this Semi-annual Report. All the directors attended the board meeting for reviewing the Semi-annual Report. Any perspective description, such as future plan, development strategy, etc. involved in the Semi-Annual Report shall not constitute the Company’s substantial commitment to the investors and the investors should please pay attention to their investment risks. In this report, the Company has described in detail the existing macro-economic risks as well as operation risks. Investors are advised to refer to the contents concerning risks possibly to be confronted with by the Company and the countermeasures to be taken in Section 3 Discussion and Analysis by the Management The Company intends neither to distribute any cash dividend or bonus shares nor to convert any reserve into share capital. Table of Contents Section 1 Important Notice, Table of Contents and Definition Section 2 Company Profile and Financial Highlights Section 3 Discussion and Analysis by the Management Section 4 Corporate Governance Section 5 Environment and Social Responsibility Section 6 Significant Events Section 7 Change of the Shares and Particulars about Shareholders Section 8 About the Preferred Shares Section 9 About Bonds Section 10 Financial Report Documents Available for Inspection I. Financial statements signed by and under the seal of the legal representative, the chief financial officer and the person in charge of the accounting office. II. Originals of all documents and manuscripts of all the Company’s documents disclosed to the public on the media designated by China Securities Regulatory Commission during the reporting period. III. Full text of 2022 Semi-annual Report carrying the signature of the legal representative. Definitions
Section 2 Company Profile and Financial Highlights I. Company Profile
1. Way of Communication There is no change in the registered address, office address and post code, company website, email during the reporting period. For the detail, refer to 2021 Annual Report. 2. Information Disclosure and Place where the Regular Reports are Prepared There is no change in the newspapers designated for disclosing the information, the Internet website designated by China Securities Regulatory Commission for publishing the Semi-annual Report, and the place where the Company’s Semi-annual Report is prepared and available for inquiry. For the detail, refer to 2021 Annual Report. 3. Other Relevant Information Is there any change in any other relevant information during the reporting period Inapplicable IV. Summary of Accounting/Financial Data Does the Company need to make retroactive adjustment or restatement of the accounting data of the previous years No
International Accounting Standards (IAS) 1. Differences in the net profit disclosed in the financial report & the net assets attributable to the Company’s shareholders respectively according to the IAS and the CAS. Inapplicable 2. Differences in the net profit disclosed in the financial report & the net assets attributable to the Company’s shareholders respectively according to the IAS and the CAS. Inapplicable VI. Non-recurring gain/loss items and the amount involved In CNY
Inapplicable Explanation of the non-recurring gains and losses listed in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public as recurring gains and losses Inapplicable Section 3 Discussion and Analysis by the Management I. Main business the Company operated during the reporting period (I) Main business the Company operated during the reporting period The Company bases its establishment and development on the aviation precision technology and material technology. Over the years, the Company has been adhering to the values of “the leading role of brand, customer orientation, value creation, cooperation and responsibility, learning and innovation", taking “inheriting of the spirit of aeronautical patriotism and creating a quality life” as its mission, adhering to the brand strategy and innovation drive, focusing on the watch industry, has formed a core business with integration of watch research and development, design, manufacturing, sales and services. Since its establishment, the Company has been deep plowed professional watch-making capability construction and brand operation, has successfully built the "FIYTA" brand and established the brand a leading position in the domestic industry by virtue of the advantages in technology and quality. Relying on its precision and advanced technology, the "FIYTA" Brand has provided professional timekeeping watches for China's aerospace industry for many times. Since 2003, the Company has successively fulfilled the tasks of developing aerospace watches for “Shenzhou V” to “Shenzhou XIV”. FIYTA has become one of the three major aerospace watch brands in the world. Since 1997, in order to seize the opportunities in the domestic famous watch market and accelerate the breakthrough of China’s own brands, the Company has expanded the retail business of "HARMONY" World Watches, refined the industry-leading operational management and customer service capabilities, and continued to devote itself to building a high-end chain commercial brand specialized in the sales and services of famous watches. In recent years, the Company has relied on high-end precision manufacturing technology and industrial accumulation, based on the development principle of “technology being homologous, the industry being same-rooted and value being co-directional”, and extended the development of precision technology business and smart wears business. At present, these two businesses have begun to take shape. (II)Development of the Industry the Company is Engaged in during the Reporting Period The watch industry the Company is engaged in has a long history and profound cultural precipitation, and is one of the representative industries of high-precision manufacturing. The domestic watch industry closely follows the national industrial modernization progress, and is flourishing with the pragmatic spirit and self-improvement culture of “Made in China". Recently, five national administrative departments of China jointly issued the "Guiding Opinions on the Development of Light Industry", which put forward specific requirements for scientific and technological innovation, brand promotion and other aspects of light industry, including the watch industry, to promote the continued high-quality development of the industry. Watches have multiple attributes of functions and art. With the arrival of the era of personalized consumption, it is no longer limited to the function of timekeeping, but integrates various needs of the new consumption era such as emotional value and aesthetic experience, and is gradually becoming the symbolic presentation of quality life consumers are pursuing. In recent years, with the improvement of national purchasing power, the change of consumption concept and the guidance of watch consumption market. The consumption of mid-to-high-end watches represented by the Swiss watch brands has shown a positive growth momentum. Since 2016, the amount of Swiss watch exports to mainland China has grown steadily for six consecutive years, and the market share of mainland China has jumped to the forefront of the world. The mid-end and fashion watch consumer market where domestic watch brands are located is confronted with many challenges such as the national consumption structure and the upgrading of consumer demand, and gradually seeks to transform and upgrade to quality and personalization. With the rise of "national tide culture", domestic watch brands have ushered in new development opportunities and market space. At the same time, the domestic watch industry has experienced profound changes with the process of industrial digitalization. The innovation of digital technology has boosted the continuous improvement of the overall efficiency of the industrial chain, with increasingly rich varieties, improved quality, and continuous emergence of brands to meet the continuously upgraded consumer demand. In the future, digital concepts and digital technologies shall be further integrated into R&D, design, manufacturing, sales, service and other links, bringing us new opportunities and challenges. In general, the continuous improvement of China's manufacturing level, the increasingly segmented and diversified consumer demands have brought broad development prospects to the industry we are engaged in, and digital transformation and upgrading have brought huge potential for improving the efficiency of the industrial chain. Facing the future, the competitive advantage centered on "brand power, product power, channel power" and "digitalization" shall be always our confidence. II. Analysis on Core Competitiveness (I) Adhering to Brand Leadership and Having Accumulated Rich Experience in Brand Management The brand positioning of "FIYTA" is "a high-quality Chinese watch brand with aerospace watch as the feature". The Company has achieved a number of industry firsts in brand building, marketing communication, product design, etc., and has a solid foundation in brand operation. At the same time, the Company enthusiastically promotes international development. By leading and participating in the compilation of a number of international standards, the Company has entered the BASELWORLD, etc. to strengthen exchanges and interactions with outstanding watch brands, and the brand force has been continuously improved. With the vision of "becoming the most outstanding comprehensive service provider of famous watches", the retail channel of "HARMONY" World Watch maintains good cooperative relations with various group brands and independent brands by virtue of its industry-leading operational management capability and customer service levels and the proportion of the meddle and high end brands is continuously rising. (II) Construction of Deep Ploughed Channel and Creating Excellent Channel Management Ability FIYTA persistently constructed the deeply ploughed channel, and continuously provided a source of power for brand development with high-quality services and refined operation capability. "FIYTA" Brand and "HARMONY" brand watch retail channels have offline business outlets covering most regions of the country, online business outlets covering mainstream e-commerce platforms, and at the same time, focus on promoting the expansion of new media channels such as live streaming and mini programs. The Company has always devoted itself to building the ability of outstanding channel operation, powerful team, excellent services, and providing customers with the best consumption experience in all aspects. The “Three-Level Marketing”, “Perfect Sales”, “Outstanding Operation” etc. have already been deposited as the core base work logic of channel operation. In recent years, the Company has comprehensively promoted digital construction, made a preliminary result in the digital transformation and achieved full coverage of online and offline self-operated stores, and shall provide customers with more systematic professional services and create more value. (III) Building the Advantages of the Leading Core technology Based on Precision Technology The Company has been devoting itself to the building of precision technology research and development capability, has successively built advanced R & D, production technology and manufacturing technology platforms, and has established R & D and production bases in Shenzhen and Switzerland respectively; and has established professional watchmaking capabilities, including self-made driving units of watches and key components manufacturing, space watch research and development and high-end watchmaking techniques, etc., and achieved continuous breakthroughs in research and development and application of new materials, new processes and new technologies. At present, the Company has 2 national high-tech enterprises, established a national enterprise technology center, a national industrial design center, and is a national technological innovation demonstration enterprise. During the reporting period, based on the continuous consolidation of core competitiveness, the "FIYTA" brand won the "Most Influential Brand of the Year" Award in the Guangdong-Hong Kong-Macao Greater Bay Area in 2022, and HARMONY was awarded one of “the Top Ten Powers of Annual Increase in Wholesale and Retail Industry 2021 in Nanshan District, Shenzhen"; the Science and Technology Development Company was elected "2021 Technologically Advanced Small and Medium-sized Enterprises in Guangdong Province". III. Analysis on Principal Businesses I. General In the first half year of 2022, the global political and economic situation was turbulent, and the situation of COVID-19 Epidemic in Beijing, Shanghai, Shenzhen and other places in China was repeated, and the consumer market was relatively sluggish under various pressures. With the changes in the domestic epidemic prevention and control situation, the year-on-year growth rate of total retail sales of consumer goods achieved positive year-on-year growth by June, ending the continuous negative year-on-year growth from March to May, and the consumer market gradually recovered. Facing the severe market situation, on the premise of continuing to strictly implement the COVID-19 Epidemic prevention and control measures, the Company adhered to the business strategy of "defensive counterattack", prevented risks such as inventory and accounts receivable, strictly controlled various costs and expenses, and actively grasped various operating countermeasures; as a result, the operating performance was gradually improved under the continuous impact of the COVID-19 since March; the monthly revenue in the second quarter continued to increase month-on-month, and the monthly revenue in June achieved a year-on-year positive growth. In the reporting period, the Company realized revenue amounting to CNY 2,183.57 million with year-on-year growth of 21.38% and realized total profit amounting to CNY 178.33 million with a year-on-year drop of 40.97%. (1) Promoting brand positioning upgrade, systematically enhancing brand building and the influential force of products During the reporting period, "FIYTA" continued to promote the upgrade of brand positioning, established the positioning of "high-quality Chinese watch brand with aerospace watches as its feature", and created a product collection matrix with "the country as the core and trend as the form". Focusing on core collections such as "Aerospace", "Clover", "Heartouching" and other core collections, increased resource allocation and combined aerospace-related events and topics on new medium channels a such as "Little Red Book", "Tik Tok" and "POIZON", the Company further carried out integrated marketing activities, and the sales of "Aerospace" collection increased by more than five times year-on-year, which helped the brand's average customer price to be significantly improved and the brand image to be rejuvenated. “HARMONY” continued to focus on the dimensions such as service level, customer research, customer value mining, etc. to deepen plough of and refine operations. Customer satisfaction and stickiness were further improved. The total amount of potential customer transactions and old customers' repurchase accounted for about 60%. (2)Promoting high-quality development of channels and further optimizing channel structure During the reporting period, “FIYTA” continued to optimize the image of terminal stores, launched the first aerospace-themed store; promoted the entry of shopping malls, and opened 12 new shopping mall shops. "HARMONY" continued to promote the transformation and upgrading of existing channels and the expansion of mid-to-high-end channels, increasing the proportion of mid-to-high-end channels, and opened 11 new shops in Shanghai, Chongqing, Xi'an, Wuhan, Changsha and other places; continued to explore creative operation models, such as setting up high-end integrated shop TimeVallée; actively tried to carry out cross-border activities with automobiles, securities, banks, etc. (3) Adhering to innovation-driving and accelerating digital transformation During the reporting period, "FIYTA" further promoted private domain operations, completed full launch of the mini-program cloud store project, and continued to attract traffic to offline stores; relying on the CRM system, “FIYTA” carried out members & fans community project, and the member recruitment and potential customer conversion continued to grow steadily. "HARMONY" continued to improve the special capability of digital marketing, built and reserved an internal KOS (Key Opinion Sales) team; enhanced digital marketing effort, and effectively solved the impact upon offline physical store sales. (4) Based on precision technology, enhancing technical strength and expanding new markets and new customers During the reporting period, the Company continued to strengthen cooperation in the fields of optical communication and lasers in its precision technology business, strove to build a technical team that matched complex and high-precision aerospace products, improved the processing capabilities of high-precision products, and tapped new customers in the fields of aerospace and medical equipment. The Company achieved breakthrough in some key projects, and the operating revenue from the precision technology business in the first half of the year increased by more than 40% year-on-year. The Company promoted the substantive operation in its smart wearable business, and the revenue from self-operated e-commerce channels increased steadily; the Company continued to implement software optimization to improve product and technical capability. Year-on-year Movements of the Key Financial Items are summarized as follows: In CNY
Composition of Revenues In CNY
Sector(s), Product(s) or Region(s) Taking over 10% of the Operating Revenue or Operating Profit In CNY
While adjustment of the statistical caliber for the principal business data took place in the reporting period, the principal business data with the statistical caliber adjusted at the end of the reporting period in the latest year. Inapplicable Causes of the change in the relevant data by over 30% During the reporting period, benefited from the market development and breakthroughs in key projects precision technology business, the Company achieved operating revenue increase by 43.00% year-on-year, and operating costs increase by 40.94% year-on-year. IV. Analysis on Non-Principal Businesses Inapplicable V. Analysis on Assets and Liabilities 1. Significant Changes in Assets Composition In CNY
Inapplicable 3. Assets and liabilities measured based on fair value Inapplicable 4. Restriction on rights in the assets ended the reporting period A property owned by Switzerland based Montres Chouriet SA with net value of CNY 10,889,815.89 was used as a collateral for the overseas long term loan amounting to CNY 3,660,090.00. Part of the notes receivable of Shenzhen FIYTA Technology Development Co., Ltd. has been discounted, with a net value of CNY 12,178,305.45. VI. Analysis of Investment Situation 1. General
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