Shizhi translates to "prototype" or, more literally, to "trial run" or "test run"...these are quite rare pieces as relatively few were ever made, especially when compared to the size of regular production runs.
Shizhi #1 is atypical/unusual in that the movement is signed, which leads some knowledgeable collectors to surmise that this model is one provided to government officials by Liaoning watch factory when seeking permission for full-scale production runs...
So far as is I understand, Shizhi watches did not ever have decorated case backs...
The "Liaoning signed" Shizhi #1 SL-2 17 jewel movement (note the very fine striped decoration on the movement parts...)
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Shizhi #2 is a more typical model, assumed to be provided to Liaoning employees for durability and accuracy testing in real world conditions, but also as an employee benefit since watches were a highly prized commodity at that time in China (a relatively prosperous Chinese worker would still expect to save for months to afford one). Note the plainer finish and the more usual unsigned movement:
Shizhi #2 caseback (also: it's possible the crown has been replaced on this watch as Shizhi #1 has the more usual early Liaoning crown intact).
Shizhi #2 (unsigned) SL-2 17 zuan/jewel movement.
The SL-2 was the second watch movement developed by Laioning during the mid-60s (during the "cultural revolution") for their Hongqi "Red Flag" branded watches. At the time, this movement was considered a high-grade movement.
...and a side-by-side shot of my two Shizhi brothers hanging around my slowest computer.
It's easy to see the difference in dial quality in this shot. Shizhi #2 (on the left / stage right) has very matte finish compared to the almost shiny surface of the dial on Shizhi #1. Also, the Zhonguo Liaoning on Shizhi #2 is in plain text rather than the script on #1.
Many Chinese watch factories provided watches to employees as a benefit but, so far as I know, only Liaoning clearly "branded" their test watches as prototypes.
Both these watches run quite well...at worst within about 7-10 seconds a day.