飞亚达Ｂ：2021年第一季度报告（英文版）

FIYTA Precision Technology Co., Ltd. 2021 First Quarter Report, Summary Section 1 Important Notice, Table of Contents and Definition The Board of Directors, the Supervisory Committee, directors, supervisors and senior executives hereby individuallyand collectively accept responsibility for the correctness, accuracy and completeness of the contents of this report All the directors attended the board meeting for reviewing the Quarter Report. Huang Yongfeng, the Company leader, Chen Zhuo, chief financial officer, and Tian Hui, the manager of the accountingdepartment (treasurer) hereby confirm the authenticity and completeness of the financial report enclosed in this Section 2 Company Profile I. Summary of Accounting/Financial Data Does the Company need to make retroactive adjustment or restatement of the accounting data of the previous year II. Total number of shareholders and the statement of the shares held by the top 10 shareholders 1. Total number of the common shareholders and preferred shareholders whose voting rights are restored and sharesheld by the top 10 shareholders 2. Total Preference Shareholders and the Shareholding by the Top 10 Preference ShareholdersInapplicable Section 3 Significant EventsI.Financial Data Summary, State ment of Change in the Financial Indicators and the Causes during the Reporting Period During the first quarter, the domestic mid-to-high-end watch consumption market experienced a continuous growth trendfollowing the second half of last year. According to the statistics of the Swiss Watch Industry FH, the cumulative value of Swisswatch exports to China from January to February increased by 90.38% year-on-year, compared with the increase in 2019which also reached 47.96%. The Company has always adhered to the concept of high-quality development, continued to tamp During the reporting period, the Company continued to focus on the goal of "value creation" and paid close attention to theimplementation of the work. Focusing on “brand power, product power, and channel power”, the Company continued tostrengthen its core competitive advantages. FIYTA Brand unit price per customer, sales discounts, and gross profit marginscontinued to increase, series of new products such as MARS 500, Extremity and Heartstrings were successfully launched, andentered shopping mall channels in an orderly way. The year-on-year revenue growth rate reached 58%; on the basis of thecontinuous improvement of single store output, HARMONY World Watch Retail continued to promote channel expansion. The During the reporting period, the FIYTA brand was selected as one of the 7th "International Reputation Brands" and washonorably listed in the "Shenzhen Gifts". The Company keeps optimistic about the growth prospects of the domestic watch consumer market in the future, and shallactively seize the opportunities of the times, continue to strengthen its core competitive advantages, and accelerate thechannel layout and structural upgrade; stick to the original aspiration of development, implement the "Big Country Brand" II. Analysis on and explanation of the progress of important issues and their impacts and solutions 1. Matters in Connection with 2018 Restricted A-Share Incentive Scheme (Phase I) The 24th session of the Ninth Board of Directors held on December 29, 2020 reviewed and approved the Proposal on theRelease Conditions having been Satisfied for the First Release Period of 2018 Restricted A-Share Incentive Scheme (Phase I).The 1.357641 million restricted shares (accounting for 0.3116% of the Company's total share capital) that could be lifted thistime were listed for trading on February 1, 2021. For the details please refer to the "Indicative Announcement on the First Release of the Restricted Sales Period and the Listing of the Restricted Shares for Trading Involved in the 2018 A-Share According to the “Proposal for Repurchase and Cancellation of thePartially Restricted Shares Involved in 2018 Restricted A-Share Incentive Scheme (Phase I)” approved at the 26th Sessions of the Ninth Board of Directors held on February 4, 2021and 2021 2nd Extraordinary General Meeting held on February 24, 2021, the Company decided to repurchase and cancel atotal of 51,359 restricted A-shares that were granted with the restriction but not released to the one retired and one deceased incentiveobjects in the 2018 Restricted A-Share Incentive Scheme(Phase I).For the details please refer to the 2. Matters in Connection with 2018 Restricted A-Share Incentive Scheme (Phase II) The 23rd session of the Ninth Board of Directors held on December 4, 2020 and 2021 1st Extraordinary General Meeting heldon January 6, 2021 decided to start 2018 Restricted A-Share Incentive Scheme (Phase II) (Draft) and the summary, which waslater on reviewed and approved at the 25th session of the Ninth Board of Directors held on January 15, 2021, and theCompany eventually granted 7.66 million restrictive A-shares to 135 persons eligible