[年报]飞亚达Ｂ(200026):2022年年度报告（英文版）
原标题:飞亚达Ｂ:2022年年度报告（英文版） FIYTA Precision Technology Co., Ltd. 2022 Annual Report March, 2023 2022 Annual Report 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 Annual Report. All the directors attended the board meeting for reviewing the Annual Report. Any perspective description, such as the future plan, development strategy, etc. involved in the 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 the Company's future development prospect in Section 3 Discussion and Analysis of the Management. Reviewed and approved by the Board of Directors , the Company's profit distribution preplan is summarized as follows: based on the total share capital as at the date of record (with the shares in the special securities account for repurchase deducted) when the profit distribution plan is implemented in the future, the Company is going to distribute dividend to all the shareholders at the rate of CNY2.50 for every 10 shares (with the tax inclusive), 0 bonus shares (with the tax inclusive),and no public reserve shall be converted 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, chief accountant and accounting supervisors; II. The original Auditors’ Report affixed with the seal of the accounting firm, signed by and affixed with the seal of the certified public accountant. III. Originals of all documents and manuscripts of all the Company’s documents disclosed to the public during the reporting period. Definitions
Section 2 Company Profile and Financial Highlights
Inapplicable The financial advisor performing persistent supervision duties engaged by the Company in the reporting period Inapplicable VI. Summary of Accounting/Financial Data Does the Company need to make retroactive adjustment or restatement of the accounting data of the previous years?
the last three fiscal years is negative, and the auditor's report of the previous year shows that the Company’s going concern ability is uncertain. No The lower of the net profit before and after the deduction of the non-recurring gains and losses is negative. No VII. Discrepancy in accounting data between IAS and CAS 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. Difference of the net profit and net asset in the financial report disclosed respectively according to the IAS and the CAS. Inapplicable VIII. Financial Data Summary based on Quarters
disclosed by the Company in the quarterly and semi-annual reports? No IX. Extraordinary items and amount
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. About the Industry the Company Engages in 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 with the nature of precision technology. The domestic watch industry closely follows the national light industry modernization progress, and is flourishing with the Chinese national craftsmanship and self-improvement culture. According to the strategic deployment of the 20th National Congress of the Communist Party of China and the "Guiding Opinions on the High-quality Development of Light Industry in the 14th Five-Year Plan" promulgated by the China Light Industry Federation, light industry, as an important consumer goods industry, undertakes the mission of providing high-quality consumer products for the people, among which, watches because of their multiple attributes of function and art, integrate a variety of needs of the new consumption era such as emotional value and aesthetic experience, and gradually develop in the direction of quality, fashion and personalization, so as to continuously meet the increasingly upgraded consumption needs of consumers. With the improvement of national purchasing power and the growth of consumer demand, the overall scale of China's consumer market has continued to expand, ranking the second in the world. The domestic watch consumer market has also continued to grow at a compound growth rate of about 5% in the past five years. At present, under the guidance of relevant national policies such as "dual circulation" and "common prosperity", the middle-income group as the target consumer group of watches continues to expand, and is stimulating the consumption growth of urban clusters and infiltrating the consumption demand of second- and third-tier cities. With the comprehensive release of travel policies, the offline passenger flow is gradually restored, and the watch consumption market is expected to continue to maintain the growth trend. However, the rapidly growing domestic watch consumption market also shows significant differentiation. On the one hand, with the differentiation of price ranges, watches in the middle and high-end price ranges present double growth trend in both amount and quantity. The compound growth rate of the amount of Swiss watches exported to Chinese Mainland in the past five years has exceeded 10%, significantly higher than the market average. As a whole, domestic watch brands in the middle and low-end price ranges are facing greater pressure. On the other hand, with the differentiation of the competition pattern, the head brand or channel is promoting M & A and integration in the industry and accelerating the expansion of market share and further enhancing the concentration ratio relying on its competition advantages in scale, operation management, resources integration and so on. The increasingly intensified challenge is forcing watch brands, especially domestic watch brands to to make continuous efforts to improve the price range and market share of the brands, and some domestic watch brands are rising after fierce competition. The Company has had long-term prospects on watch industry, has been continuously cultivating and investing in the core businesses of "FIYTA", the own brand and "Harmony” world watch retails, constantly consolidating the "brand power, product power and channel power", and has been enjoying a good market share and industry position foundation. At present, in the face of the opportunities and challenges embodied in the watch consumption market, the Company shall, as always, maintain a positive attitude, take customer needs as the guide, adhere to the principle of high-quality development, and promote the “FIYTA", the self-owned brand, to develop in the direction of high quality and differentiation. "HARMONY" world watch retail is developing towards professionalization and benchmarking of operations and services; at the same time, shall continue to promote digital transformation and upgrading, and further integrate digital concepts and technologies into R&D, design, manufacturing, sales, services and other links in order to build its digital ability to use data to empower value creation. II. Main business the Company operated in the reporting period The Company bases its establishment and development on the aviation precision technology and material technology, 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, focusing on the watch industry; the core watch business has formed the business layout of “Brand + Channel” which consists of the self-owned brand and retails of world brand watches. In addition, the Company is actively exploring and cultivating new businesses such as precision technology and smart wearables, which are in the stage of continuous development. The Company is deeply involved in the construction of professional watchmaking capabilities and brand operations, has a number of self-owned brands such as "Fiyta", "Emile Chouriet", "Beijing" and "Jeep", covering different dimensions of mid-to-high-end, popular professional, fashion and cool and so on. Of them, the core self-owned brand of "FIYTA" is positioned as "a high-quality Chinese watch brand with continuously provided professional chronograph watches for China's aerospace industry. Through the idea of taking “the nation” as the core and "fashion" as the form, the Company has developed differentiated products which match the "aerospace quality", carried out integrated marketing, continuously expanded brand influence, and gradually established its leading position in the domestic industry. In order to seize the opportunities in the domestic brand watch market, promote the long-term development of its own brands, and expand the retail business of "Harmony" world brand watches, "Harmony" is committed to "becoming the best comprehensive service provider of famous watches", and has long-term and in-depth cooperation with many famous watch groups and brands; Relying on its industry-leading operation management capabilities and customer service capabilities, it shall gradually become a professional high-end chain commercial brands 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 wearables business. At present, these two businesses have begun to take shape. III. Analysis on Core Competitiveness (I) Brand operation and management capabilities of the whole-industry-chain The Company has been deeply involved in the watch industry. Over the years, it has continued to invest and accumulate around brand building, technology research and development, product design, product operation, customer research, membership operations, etc. It has a whole-industry- chain operation integrating R&D, design, manufacturing, sales, and services, has strong management ability and rich experience in brand management, and has successfully built its own brand cluster with the "Fiyta" brand as the core. (II) Elaborative channel operation and management capabilities The Company continues to strengthen the construction of channel operation capability, deeply implants the concepts of "three-tier marketing" and "excellent operation" in the daily work of channel operation, and provides customers with the highest quality consumption experience in an all-round way. Customer satisfaction has long been at the forefront of the industry and has been highly recognized by cooperative brands and channels, and has established a cooperative relationship of in-depth mutual trust. On this basis, the Company's "Fiyta" self-owned brand and "Harmony" world watch retails have established a relatively complete and high-quality channel network. Of them, offline channels cover most parts of the country, consisting of flagship stores, franchise houses, theme stores, collection stores, etc.; online channels cover mainstream e-commerce platforms, and focus on new media such as live broadcasts, applets, etc.; online and offline channels are also further integrated through the application of digital retail systems. (III) Digital capabilities to empower businesses The Company continues to take customers as the core and data as the basis, and invest in digital capacity building for the purpose of improving customer experience and gaining insight into customer needs and changes. By building CRM system, digital retail system, SAP system and other platforms, the Company has gradually built data analysis capabilities in the application process, promoted multi-channel and multi-scenario customer acquisition, tapped the value of the whole life cycle of customers. As a result, significant improvement has been achieved in number of members and potential customers, transactions by potential customers, repurchase by old customers, private domain operations and conversion efficiency. (IV)Capacity of Core 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. (V) Ability of Building Professional Talent Team The Company attaches great importance to talent team building, continues to improve the "value creation"-oriented market-based salary distribution mechanism, provides employees with diversified promotion and development channels, organizes employees to carry out professional learning and training, and through check of high-potential talents, professional talent development measures such as channel construction, the Company has enriched the reserve echelon of talents. At the same time, the Company implements medium and long-term restricted stock incentive plans for core management and key teams, closely linking the interests of key talents with the Company's development, and promoting mutual development of both the Company and employees. At present, the Company has many outstanding talents of the industry in design, research and development and other core fields, and the team stability and employee satisfaction are at a high level. 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; the "Fiyta" aerospace watch was launched again with the "Shenzhou 14" and "Shenzhou 15" manned spacecrafts; and HARMONY was awarded one of “the Top Ten Powers of Annual Increase in Wholesale and Retail Industry 2021 in Nanshan District, Shenzhen"; the Technology Development Company was elected "2021 Technologically Advanced Small and Medium-sized Enterprises in Guangdong Province". IV. Analysis on Principal Businesses 1. General In 2022, the global political and economic situation was even more turbulent and in addition, people bore the pressure persistently in employment and income, and consumption was expected to be weakened. The total retail sales of consumer goods for the whole year dropped by 0.2% year-on-year. Under multiple pressures, the overall domestic watch consumption market was in a downturn. According to statistics, the business revenue of industrial enterprises above designated size in the watch industry fell by 10.09% year-on-year, and the amount of Swiss watches exported to Mainland China also fell by 13.6% year-on-year. In the face of the rapidly changing and severe market situation, the Company continued to adhere to the business strategy of "Stability" and "Defensive counterattack", effectively prevented risks such as inventory and accounts receivable, strictly controlled various costs and expenses, and actively seized various business “Counterattack Points”. In the reporting period, the Company realized business revenue amounting to CNY 4,354.09 million, a year-on-year decrease of 16.97%, an increase of 2.61% over 2020, and an increase of 17.54% over 2019; realized total profit amounting to CNY 339.12 million, a year-on-year decrease of 32.49%. (1) Upgrading the Positioning of the Self-owned Brand, and Taking Multiple Measures to Enhance Product and Brand Power During the reporting period, the "FIYTA" Brand defined its positioning as "a high-quality Made-in-China watch brand featuring aerospace watches", focusing on six core series including "Aerospace", "Clover", "Heartstring" and "Impression” and increased resource input. The core series increased resource investment. The total revenue from them accounted for nearly 50% of the revenue from the Brand, of which the "Aerospace" series accounted for more than 10%. The Company continued to carry out integrated marketing, and promoted the popularity of individual products through cross-field cooperation, membership salon, event marketing, etc., and successfully created hot selling products such as J-20, Xiaokeke, and three-body joint models, which helped the brand AOV to significantly increase and the brand image to be younger. (2) Improving channel operation capability and optimizing the structure to promote high-quality development During the reporting period, the "Fiyta" Brand offline focused on the "Space Station" concept store, package store and fashion collection store, explored ecological win-win and reproducible store models, continued to optimize the channel structure, and actively developed store membership salon activities, enhanced customer experience and product sales with the innovative theme and form; quickly boosted breakthrough in new online channels such as TikTok. During the "Double Eleven" period, the Company achieved positive growth in GMV, and sales on the TikTok platform throughout the year also increased significantly year-on-year . "Harmony" World Watch Retail continued to focus on customer research, customer value mining, customer services and other dimensions to deepen the refined operation of stores, and customer stickiness continued to increase. Meanwhile, "Harmony" continued to promote channel structure upgrading and high-quality channel expansion, promoted cooperation with Time Vallée of Richemont Group, and opened two new Time Vallée collection stores; explored cross-category operations, opened the first optical store Harmony Optical; actively cooperated with automobiles, Securities, banks, etc. to carry out cross-field activities. (3) Adhering to innovation-driving and accelerating digital transformation During the reporting period, the "Fiyta" Brand continued to optimize the CRM system, and the number of members and the conversion rate of potential customers continued to grow steadily; the private domain connected with the public account, and thus realized the transition from the public domain to the private domain. "Harmony” World Watch Retail continued to deepen its membership operations, and the transaction amount of potential customers and the repurchase amount of old customers accounted for more than 60%. (4) Strengthening the Technical Strength of Precision Technology and Promoting the Sustainable Development of New Business During the reporting period, the Company accelerated the advancement of watch movement technology breakthrough and the application of new materials such as aerospace, and achieved positive progress in the related special project. 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 realized year-on-year increase of both operating revenue and profit. The Company continued to optimize the channel structure of smart wearables business, quickly developed the self-run e-commerce channels, accounting for more than 70% of the revenue. At the same time, the Company focused on promoting the starting amount of its own brand ADASHER. Year-on-year Movements of the Key Financial Items are summarized as follows:
(1) Composition of Revenues
|
