It carries a quartz 32768hz of DSE movement with "prototype" marked on the case back.
Quoted from Shanghai Light Industry Bureau web-page about this watch, URL as follow
"The First China made "3rd generation" quartz watch was made by Shanghai Watch & Clock Parts Factory. By the early 1972, SH W&C Parts Factory made the 1st prototype operated by 4x 1.5V #5 battery. By the end of 1974, made a 16 beat frequency circle movement prototype. Till to 1984, 4,177 piece of prototype had made, registered "JinXing" as the trade mark. In order to let SH W&C Parts Factory more concentrated on quartz movement invention, JinXing stopped their production on December of 1984."
As per the Bureau recorded, the terms of 1,2,3 generation;
1st generation quartz watch = Electronic -Mechanical watch, made by Shanghai Ball Pen Factory named "XiongYang".
2nd generation quartz = Tuning Fork watch (Not sure which factory did the first, I know Tianjin and Shanghai, both watch factory had made their tuning fork watch in the past as for experimental purpose),
3rd generation quartz = real quartz watch movement, power by battery and time taking by quartz vibration.