Fuzhou Watch Factory 福州手表厂was established in 1976. Due to high production costs its Shuixian brand watches had to be sold for a lower amount than it cost to produce them. In 1979 the decision was made to stop production, and, with investment from Hong Kong, the factory became an early Chinese producer of digital electronic watches.


The new venture eventually proved to be unprofitable too, and further reforms were considered in the mid-1980s. It was discovered at this time that the factory had a stockpile of unused mechanical watch parts, many of which had been allowed to rust. A recommendation was made to use the good parts to assemble more Shuixian brand watches, but it is unclear whether it was put into effect.