Fiyta Precision Technology Co.Ltd(000026)
2021 Corporate Social Responsibility Report
This report follows the disclosure requirements for social responsibility report of listed companies of Shenzhen Stock Exchange and mainly introduces the social responsibility related work of Fiyta Precision Technology Co.Ltd(000026) (hereinafter referred to as “the company”) in terms of standardized operation, honest operation, employee care, social public welfare and environmental protection from the perspective of all stakeholders.
This report covers the social responsibility related work carried out by the company from January 1 to December 31, 2021.
1、 Company profile
The company was founded in 1987 and registered at Fiyta Precision Technology Co.Ltd(000026) science and technology building, Gaoxin South 1st Road, Nanshan District, Shenzhen. It was listed on Shenzhen Stock Exchange in 1993. By the end of 2021, the company has total assets of 4110580000 yuan, net assets of 30313230000 yuan and more than 5000 employees. It is the flagship enterprise in China’s watch industry.
Company mission: inherit the spirit of “serving the country by aviation” and create a quality life
Values: brand leadership, customer orientation, value creation, cooperation and responsibility, learning and innovation
The establishment and development of the company originates from aviation precision manufacturing and material technology. It is mainly engaged in watch brand management and famous watch retail business. From the technical characteristics, it belongs to the precision technology industry. Relying on the high-end precision manufacturing technology and industrial accumulation, and based on the development principle of “technology of the same origin, industry of the same origin and value of the same direction”, the company has extended and expanded the precision technology business and intelligent wearable business. At present, the two businesses have begun to take shape.
In 2021, the macro environment is complex and severe. The rebound momentum of consumption after the epidemic has gradually leveled off since the third quarter. The year-on-year growth rate of China’s total retail sales has shown a trend of high before low. In the face of the complex and changeable consumer market, repeated epidemics in many places and occasional natural disasters, on the premise of strict epidemic prevention and control and ensuring the health of employees, the company continues to focus on “brand power, product power and channel power”, fully promote high-quality development and the implementation of big country brand strategy, and effectively respond to external pressures and challenges with all employees, Business performance continued to break through. During the reporting period, the company achieved an operating revenue of 524373 million yuan, a year-on-year increase of 23.57%, and a total profit of 502.33 million yuan, a year-on-year increase of 34.51%. It has achieved growth and reached a new high for five consecutive years. At the same time, the company’s operating capacity and efficiency were further improved, the return on net assets reached 13.39%, a year-on-year increase of 2.61 percentage points, and the inventory turnover rate reached 1.57 times, a year-on-year increase of 0.22 times.
Since its establishment, the company has always adhered to paying taxes in good faith according to law and fulfilled its due social responsibility. In 2021, the total tax amount of the company was 389 million yuan. The company has won wide recognition from all walks of life. In 2021, the company won the titles of “international reputable brand”, “top 200 enterprises in China’s light industry” and “top 20 listed corporate governance in Dawan District in 2021”, and was rated as “A-level demonstration enterprise of synchronous R & D and standardization in Shenzhen”. Its wholly-owned subsidiary was selected into the list of “specialized and special new” central enterprises in Guangdong Province and launched with the manned spacecraft “Shenzhou 12”, Once again help China’s manned space industry.
Won the title of “2021 top 20 listed company governance in Dawan district” Fiyta Precision Technology Co.Ltd(000026) Aerospace watch launched with the manned spacecraft “Shenzhou 12”
2、 Protection of the rights and interests of shareholders and creditors
(I) improve corporate governance and establish a sound internal control system
In 2021, the company continued to improve the corporate governance structure in strict accordance with the requirements of the company law, the securities law and the normative documents on the governance of listed companies issued by the CSRC, and made efforts to strengthen the construction of modern enterprise system and improve the standard operation level of the company, There is no difference between the corporate governance status and the normative documents of the CSRC on the governance of listed companies. No major problems or risks were found in the self-examination of the special action on the governance of listed companies.
Based on the daily supervision and management of internal control, the company evaluated the effectiveness of internal control on December 31, 2021 (the benchmark date of internal control evaluation report). According to the identification of major defects, the company found no major defects in internal control on the benchmark date of the internal control evaluation report. Meanwhile, the company has hired Dahua Certified Public Accountants (special general partnership) to conduct independent audit on the company’s internal control.
(II) operate steadily and protect the rights and interests of creditors
While paying attention to the protection of shareholders’ rights and interests, the company also attaches great importance to the protection of creditors’ legitimate rights and interests. Based on a more stable financial structure and sustained growth of its main business, the company makes appropriate use of financial leverage to create greater value for shareholders. The company has always paid attention to the development of bank enterprise cooperation, committed to building a diversified financing system and striving for relatively favorable financing costs. The company used the loan in strict accordance with the purpose of the loan specified in the loan contract, repaid the principal and interest on schedule, and never overdue. By the end of the reporting period, the scale of interest bearing liabilities of the company was 4178632 million yuan, the asset liability ratio was 26.7%, and the financial risk was controllable.
(III) standardize the governance structure and listen to the voice of shareholders
The company has established and improved a relatively standardized corporate governance structure and rules of procedure, formed a decision-making and operation management system with the general meeting of shareholders, the board of directors, the board of supervisors and the company’s managers as the main body, and performed various duties specified in the company law and the articles of Association according to law. In 2021, the company held a total of 6 general meetings of shareholders, as follows:
Meeting session type investor participation proportion date
The first extraordinary general meeting of shareholders in 202138.17% on January 6, 2021
The second extraordinary general meeting of shareholders in 202140.45% of the extraordinary general meeting of shareholders February 24, 2021
2020 annual general meeting 44.48% annual general meeting may 7, 2021
The third extraordinary general meeting of shareholders in 202137.53% of the extraordinary general meeting of shareholders on July 1, 2021
The fourth extraordinary general meeting of shareholders in 202147.37% of the extraordinary general meeting of shareholders on September 8, 2021
The fifth extraordinary general meeting of shareholders in 202138.41% of the extraordinary general meeting of shareholders on November 30, 2021
(IV) communicate with investors through multiple channels to convey the company’s value
In 2021, the company introduced its business performance and business development to all investors by holding annual performance explanation meeting, semi annual performance telephone meeting, etc; Through the interactive and easy platform of Shenzhen Stock Exchange, we directly faced the minority shareholders, timely solved all kinds of questions raised by investors, and replied 162 interactive and easy articles, with a response rate of 100%; Actively participated in the strategy meeting of securities companies and the counter roadshow of core institutions, received nearly 20 visits and store research, received about 230 investors, and continued to convey the company’s value to the capital market, thus obtaining 43 recommended research reports; Set up an investor hotline to answer investors’ calls in time, communicate the latest developments of the company, and obtain investors’ attention, understanding and support; The company creatively integrates the display of clock culture into the reception of investors, leads investors into Fiyta Precision Technology Co.Ltd(000026) timing culture center, and deeply understands the company’s development concept through a unique journey of clock culture.
In addition, the company pays close attention to the dynamics of public opinion, pays close attention to the speech of various platforms and the news of various media, and effectively prevents the risk of public opinion.
(V) strengthen dividends and continue to create returns for shareholders
In accordance with the provisions on cash dividends in the company’s established shareholder return plan and the articles of association, the company has been formulating a specific plan for cash dividends after deliberation by the board of directors and the general meeting of shareholders in strict accordance with the requirements. In 2021, the total cash dividends (including other ways) of the company accounted for 34.16% of the net profit attributable to the common shareholders of the listed company in the consolidated statements, and the accumulated cash dividends in three years accounted for 171.28% of the average annual net profit in the last three years, which met the requirements of rules and regulations and fully protected the interests of minority shareholders.
(VI) continuously implement the B-share repurchase plan to enhance shareholder value
In order to boost market confidence, maximize shareholder value and promote the matching of the company’s stock market price with its internal value, the company has implemented the B-share repurchase scheme for three consecutive years.
In 2021, the company launched a new round of B-share repurchase program and decided to repurchase 7.46 million to 14.92 million B-share shares with a total capital of no less than 50 million yuan and no more than 100 million yuan. This part of B-share is expected to be used for cancellation. By implementing the share repurchase plan, the company further stabilized the market value and improved the return to shareholders.
3、 Protection of the rights and interests of suppliers, customers and consumers
In accordance with the trading rules of honesty and trustworthiness, mutual benefit and legal compliance, the company has maintained a good cooperative relationship with suppliers and customers, and is committed to providing consumers with high-quality products and after-sales services.
(I) perform the contract in good faith and improve the whole process management level of the supply chain
Adhering to the principle of good faith performance and win-win cooperation, the company has established a good cooperative relationship with suppliers, and there is no breach of contract or default in payment. In 2021, the company will continue to promote lean supply chain management, improve the turnover rate of products in process and inventory, reduce the cost of supporting products and improve the management level of the whole process.
(II) provide customers and consumers with high-quality products
The company establishes and improves the quality control system and strictly implements the quality control standards. The quality control runs through the whole process of the product life cycle, and continues to promote the improvement of product quality and technological progress. The international standard iso143684 for antireflection treatment of watch glass formulated by the company is the first international standard formulated by China in the field of watches, which was released and implemented on August 1, 2020; The company’s testing center has been recognized by CNAs, and has become the enterprise laboratory with the most CNAs recognized project categories and projects in the watch industry, providing a more professional and accurate testing platform for the company’s product quality control. In 2021, relying on its own R & D strength and excellent achievements in standardization construction, the company was rated as “A-level demonstration enterprise of synchronization of R & D and standardization in Shenzhen”. (III) provide professional and timely services for customers and consumers
In 2021, the company will narrow the distance with customers through a variety of promotion activities, meet the cognitive needs of customers to get close to the brand and deeply understand the brand, and show customers a three-dimensional and comprehensive brand image Fiyta Precision Technology Co.Ltd(000026) table carries out integrated marketing in combination with aerospace hot events, and transmits brand culture and technical charm abroad through theme tour, special show, naked eye 3D advertising, online live broadcast and other ways, so as to provide customers with the best quality consumption experience in an all-round way.
Fiyta Precision Technology Co.Ltd(000026) invited to participate in the cultural and creative exhibition hall of Chengdu Airlines theme education base Fiyta Precision Technology Co.Ltd(000026) Aerospace brand month
At the same time, the company continues to improve the after-sales service system to provide customers with more satisfactory after-sales service Fiyta Precision Technology Co.Ltd(000026) brand strictly implements the policy of extending the warranty period, and continues to provide customers with convenient, fast and professional technical services. It focuses on four value-added free services: inspection of travel time, inspection of waterproof performance, watch degaussing and appearance cleaning to realize rapid processing and maintenance, ensure maintenance quality and improve customer satisfaction; Through continuous customer research, gradually establish an end-to-end customer insight system, consolidate the standardization of service process, and improve the service level of stores and customer satisfaction; Hengeely continues to promote the new retail hengmingjiang system, open up Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels, and realize the unification and data sharing of system, order, member and other dimensions. The service of offline stores was upgraded, and the specialization and standardization of after-sales maintenance were further improved. By the end of the reporting period, the company had 128 famous watch technical service channels and 197 ZhuoZhi technical service channels.
4、 Protection of employees’ rights and interests
An enterprise is an organization built for people, existing for people and realized by people. People are the key factor in the development of an enterprise. How to truly respect people’s value, meet people’s needs and stimulate people’s potential is the premise for the company to achieve rapid and sustainable development. In the process of realizing the vision of “becoming a leading international watch brand enterprise”, the company continues to protect the rights and interests of employees, pay continuous attention to people from material, spiritual and psychological levels, and realize the common growth of employees and the company.
By the end of 2021, the company has a total of 5081 employees. The professional structure and education level of employees are as follows:
Professional composition
Professional composition category professional composition number (person)
Production personnel 372
Salesperson 3745
Technicians 399
Financial personnel 142
Administrative staff
