SHENZHEN SEG CO., LTD. The First Quarterly Report 2010 (Full Text)
1
SHENZHEN SEG CO., LTD.
The First Quarterly Report 2010 (Full Text)
§1. Important Notes
1.1 The Board of Directors and Supervisory Committee of Shenzhen SEG Co., Ltd. (hereinafter
referred to as the Company) and its directors, supervisors and senior executives confirm hereby that
there are no any fictitious statements, misleading statements, or important omissions carried in this
report, and shall take all the responsibilities, individual and/or joint, for the reality, accuracy and
completeness of the whole contents.
1.2 The First Quarterly Financial Report of 2010 has not been audited by CPAs.
1.3 Zhang Weimin, Principal of the Company, Li Lifu, Person in Charge of Accounting Affairs and
Ying Huadong, Person in Charge of Accounting Organ (Accounting Supervisor) hereby confirm
that the Financial Report of the First Quarterly Report is true and complete.
§2. Company Profile
2.1 Main accounting data and financial indexes:
Unit: RMB
At the end of report
period
At the period-end of
last year
Changes of
increase/decrease (%)
Total assets (RMB) 1,381,542,466.01 1,359,490,387.43 1.62%
Owners’ equity attributable to
shareholders of listed company (RMB) 1,044,336,545.89 1,015,659,488.47 2.82%
Share capital (Share) 784,799,010.00 784,799,010.00 0.00%
Net asset per share attributable to
shareholders of listed company
(RMB/Share)
1.331 1.294 2.86%
In the report period The same period of last
year
Changes of
increase/decrease (%)
Total operating income (RMB) 91,307,818.05 67,892,989.04 34.49%
Net profit attributable to shareholders of
listed company (RMB) 15,759,677.99 -88,214,473.65 -117.87%
Net cash flow arising from operating
activities (RMB) 17,840,734.06 13,913,598.52 28.23%
Net cash flow arising from operating
activities per share (RMB/Share) 0.0227 0.0177 28.25%
Basic earnings per share (RMB/Share) 0.0201 -0.1124 -117.87%
Diluted earnings per share (RMB/Share) 0.0201 -0.1124 -117.87%
Weighted average return on equity (%) 1.53% -6.79% 8.32%
Weighted average return on equity after
deducting non-recurring gains and losses
(%)
1.53% -7.08% 8.61%
Items of non-recurring gains and losses
Amount from
year-beginning to the end
of report periodSHENZHEN SEG CO., LTD. The First Quarterly Report 2010 (Full Text)
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Other non-operating income and expenditure except for the aforementioned items 97,850.12
Influenced amount of income tax -21,527.03
Influenced amount of minority shareholders’ equity -31,864.37
Total 44,458.72
Explanations of items of significant non-recurring gains and losses
1. Other non-operating income and expenditure except for the aforementioned items：mainly the
damages for breach of contract received by the Company;
2. Influenced amount of income tax: the influenced amount of deductible income tax increased due to
the profit increase because of the aforementioned item;;
3. Influenced amount of minority shareholders’ equity: this item increased due to the increase of the
aforementioned No.1 item of controlling subsidiary of the Company.
2.2 Total number of shareholders at the end of the report period and shares held by the top ten
shareholders without restricted conditions
Unit: Share
Total number of shareholders
at the end of report period
59,152
Particulars about the shares held by the top ten tradable shareholders without restricted conditions
Full name of shareholder
Amount of tradable shares without
restricted conditions held at the end
of report period
Type of shares
SHENZHEN SEG GROUP CO., LTD. 237,359,666 RMB ordinary shares
GUANGZHOU FODAK ENTERPRISE
GROUP CO., LTD. 18,880,334 RMB ordinary shares
Yang Zhihui 12,582,734 RMB ordinary shares
Taifook Securities Company
Limited-Account Client 5,758,103 Domestically listed foreign shares
Gong Qianhua 5,560,967 Domestically listed foreign shares
Zeng Ying 4,280,048 Domestically listed foreign shares
Zhu Wei 4,066,739 RMB ordinary shares
Tang Lizhu 3,796,200 RMB ordinary shares
SHANGHAI QILE ECONOMIC AND
TRADE CO., LTD. 2,754,330 RMB ordinary shares
Cao Xianhua 2,702,000 RMB ordinary shares
§3. Significant Events
3.1 Particulars about material changes in items of main accounting statement and financial index,
and explanations of reasons
√Applicable □Inapplicable
I. Balance sheet item
Item Mar. 31, 2010 Dec. 31, 2009 Balance Proportion ofSHENZHEN SEG CO., LTD. The First Quarterly Report 2010 (Full Text)
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changes %
Inventory 1,919,437.27 5,886,392.39 -3,966,955.12 -67.39%
Construction in progress 9,776,526.68 26,192,075.55 -16,415,548.87 -62.67%
Staff salaries payable 1,172,559.95 4,261,476.99 -3,088,917.04 -72.48%
1. Inventory: decreased by RMB 3.97 million with a fall of 67.39% over the end of last year, which
was mainly because the inventories of the Company decreased in the report period.
2. Construction in progress: decreased by RMB 16.42 million with a fall of 62.67% over the end of
last year. Its reason was that the construction in progress of the subsidiary Changsha SEG
Development Co., Ltd. (hereinafter referred to as Changsha SEG) was completed and thentransferred
into fixed assets in the report period.
3. Staff salaries payable: decreased by RMB 3.09 million with a fall of 72.48% over the end of last
year. Its reason was that the Company paid the staff for salaries in the report period.
II. Income statement item
Item Amount in this
period
Amount in the
same period of
last year
Balance Proportion of
changes %
Operating income 91,307,818.05 67,892,989.04 23,414,829.01 34.49%
Operating cost 56,496,489.22 31,746,485.69 24,750,003.53 77.96%
Operating tax and extras 3,724,614.30 3,012,887.52 711,726.78 23.62%
Sales expense 1,370,260.25 906,378.64 463,881.61 51.18%
Losses from devaluation of
assets - -1,500,000.00 1,500,000.00 -100.00%
Investment gains -3,029,152.47 -115,823,698.14 112,794,545.67 -97.38%
Operating profit 23,529,850.53 -85,166,016.78 108,695,867.31 -127.63%
Non-operating income 139,079.30 1,620,912.10 -1,481,832.80 -91.42%
Non-operating expenditure 41,229.18 100,985.93 -59,756.75 -59.17%
Total profits 23,627,700.65 -83,646,090.61 107,273,791.26 -128.25%
Income tax expense 5,951,587.04 2,313,487.22 3,638,099.82 157.26%
Net profit 17,676,113.61 -85,959,577.83 103,635,691.44 -120.56%
Net profit attributable to
owners of parent company 15,759,677.99 -88,214,473.65 103,974,151.64 -117.87%
Basic earnings per share 0.0201 -0.1124 0.1325 -117.87%
Diluted earnings per share 0.0201 -0.1124 0.1325 -117.87%
Other consolidated income 12,964,835.24 -574,782.68 13,539,617.92 -2355.61%
Total consolidated income 30,640,948.85 -86,534,360.52 117,175,309.37 -135.41%
Total consolidated income
attributable to owners of
parent company
28,677,057.42 -88,896,727.63 117,573,785.05 -132.26%
1. Operating income: increased by RMB 23.41 million with an increase of 34.49% over the same
period of last year. The main reasons were i. In the report period, Changsha SEG and Changsha Hotel
of Shenzhen Mellow Orange Business Hotel Management Co., Ltd. (hereinafter referred to as
Mellow Orange Hotel) started operation which increased the operating income of the Company; ii.
Income from Buy-it Store increased compared with the same period of last year.
2. Operating cost: increased by RMB 24.75 million with an increase of 77.96% over the same period
of last year. The main reason was the increase of operating income caused the increase of operating
cost accordingly.
3. Operating tax and extras: increased by RMB 710,000 with an increase of 23.62% over the same
period of last year. The main reason was the increase of operating income caused the increase ofSHENZHEN SEG CO., LTD. The First Quarterly Report 2010 (Full Text)
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operating tax and extras accordingly.
4. Sales expense: increased by RMB 460,000 with an increase of 51.18% over the same period of last
year. The main reason was the increase of operating income caused the increase of sales expense
accordingly.
5. Losses from devaluation of assets: no losses from devaluation of assets occurred in the report
period, whereas that was RMB -1.5 million in the same period of last year. The main reasons was
part of account receivable which had been withdrawn losses of bad debts in the same period of last
year was taken back through lawsuit.
6. Investment gains: increased by RMB 112.79 million over the same period of last year. The main
reason was the losses of Shenzhen SEG Samsung Co., Ltd. (hereinafter referred to as SEG Samsung)
in which the Company holds 22.45% of its equity decreased in the report period over the same period
of last year.
7. Operating profit: increased largely over the same period of last year. The main reasons were the
losses of SEG Samsung in which the Company holds 22.45% of its equity decreased in the report
period over the same period of last year causing a large decrease in investment losses.
8. Non-operating income: decreased by RMB 1.48 million with a decrease of 91.42% over the same
period of last year. The main reasons were the Company switched back the account payable which it
did not need to pay in the same period of last year, but no such switch-back occurred in the report
period.
9. Total profits: increased largely over the same period of last year. The main reason was the same as
that of Item 7.
10. Income tax expense: increased by RMB 3.64 million with an increase of 157.26% over the same
period of last year. The main reason was the profit payable of this report year went up and income tax
rate of this report year in Shenzhen also grew.
11. Net profit: increased largely over the same period of last year. The main reason was the same as
that of Item 7.
12. Net profit attributable to owners of parent company: increased largely over the same period of
last year. The main reason was the same as that of Item 7.
13. Basic earnings per share: increased largely over the same period of last year. The main reasons
were the same with Item 7.
14. Diluted earnings per share: increased largely over the same period of last year. The main reason
was the same as that of Item 7.
15. Other consolidated income: increased by RMB 13.54 million largely over the same period of last
year. The main reason was in the report period, SEG Samsung in which the Company holds 22.45%
of its equity received the financial support funds amounting to RMB 56 million from its shareholder
Samsung Corning Investment Co., Ltd., thus RMB 12.57 million was added into other consolidated
income of the Company.
16. Total consolidated income: increased largely over the same period of last year. The main reasons
were the same as that of Items 7 and 15.
17. Total consolidated income attributable to owners of parent company: increased largely over the
same period of last year. The main reason was the same as that of Items 7 and 15.
III. Cash flow statement item
Item Amount in this
period
Amount in the
same period of
last year
Balance Proportion of
changes %
Other cash received
relating to operating activities 64,583,939.97 35,621,486.09 28,962,453.88 81.31%
Cash paid to/for staff and
workers 11,883,672.35 9,605,770.00 2,277,902.35 23.71%SHENZHEN SEG CO., LTD. The First Quarterly Report 2010 (Full Text)
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Other cash paid relating to
operating activities 53,590,151.50 31,135,749.73 22,454,401.77 72.12%
Cash received from
recovering investment 0.00 2,198,720.24 -2,198,720.24 -100.00%
Net cash received from
disposal of fixed, intangible and
other long-term assets
15,444.00 141,500.00 -126,056.00 -89.09%
Net cash received from disposal
of subsidiaries and other units 0.00 34,229,363.41 -34,229,363.41 -100.00%
Cash paid for purchasing fixed,
intangible and other long-term
assets
4,591,584.05 701,547.00 3,890,037.05 554.49%
Cash paid for investment 0.00 53,030,000.00 -53,030,000.00 -100.00%
1. Other cash received relating to operating activities: increased by RMB 28.96 million with an
increase of 81.31% over the same period of last year. The main reasons were i. items of
newly-opened Changsha SEG and Mellow Orange Hotel in the report period and newly-increased
Buy-it Store in last May increased; ii. The general cashing business was developed in the electronic
market, so the goods payment received on behalf of merchants increased.
2. Cash paid to/for staff and workers: increased by RMB 2.28 million with an increase of 23.71%
over the same period of last year. The main reasons were in the report period, Changsha SEG and
Mellow Orange Hotel started operations, and the staff in Buy-it Store added increasing the salaries
payable to the staff of the three companies.
3. Other cash paid relating to operating activities: increased by RMB 22.45 million with an increase of
72.12% over the same period of last year. The main reasons were i. items of Changsha SEG and
Mellow Orange Hotel newly-opened in the report period and Buy-it Store newly-increased last year
increased; ii. The general cashing business was developed in the electronic market, the goods
payment returning to merchants increased.
4. Cash received from recovering investment: decreased by RMB 2.2 million over the same period of
last year. The main reason was in the same period of last year, the Company reduced the shares of
Shenzhen Zero-Seven Co., Ltd. held by the Company amounting to 530,000, but no such sales
occurred in the report period.
5. Net cash received from disposal of fixed, intangible and other long-term assets: decreased by RMB
130,000 with a decrease of 89.09% over the same period of last year. The main reasons was the
amount of fixed assets disposal in the same period of last year was bigger.
6. Net cash received from disposal of subsidiaries and other units: decreased by RMB 34.23 million
over the same period of last year. The main reasons was in the same period of last year, the Company
received the equity account on selling former subsidiaries Shenzhen SEG Communications Co., Ltd,
but no such sales of subsidiary occurred in the report period.
7. Cash paid for purchasing fixed, intangible and other long-term assets: increased by RMB 3.89
million with an increase of 554.49% over the same period of last year. The main reasons were: the
newly-opened Changsha SEG and Mellow Orange Hotel purchased fixed assets in the report period,
thus the item increased.
8. Cash paid for investment: decreased by RMB 55.03 million over the same period of last year. The
main reason was in the same period of last year, the Company purchased 46 percent of the equity of
Changsha SEG, but no such expenditure of equity acquisition occurred in the report period.
3.2 Analysis and explanation of significant events and their influence and solutions
□Applicable √Inapplicable
3.3 Implementations of commitments by the Company, shareholders and actual controllerSHENZHEN SEG CO., LTD. The First Quarterly Report 2010 (Full Text)
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√Applicable □Inapplicable
Item of Commitments Promisee Content of
commitments Implementation
Commitments on Share Merger
Reform
Inapplicable -- --
Commitments on share restricted
trade
Inapplicable -- --
Commitments made in Acquisition
Report or Reports on Change in
Equity
Inapplicable
-- --
Commitments made in Material
Assets Reorganization Inapplicable -- --
Commitments made in issuance
Shenzhen SEG
Group Co.,
Ltd.
Article 5 of the
Equity Transfer
Agreement which the
Company had signed
with SEG Group at
the time of the
Company’s listing
stipulated: SEG
Group permits the
Company, as well as
its subsidiaries of the
Company and
affiliated companies
to use the 8 registered
trademarks that SEG
Group has presently
registered at the State
Trademark Office; it
also permits the
Company to take the
aforesaid trademarks
and symbols that are
similar to these marks
as the symbol of the
Company, as well as
to use the aforesaid
symbols or symbols
that are similar to
these symbols during
the operation process;
the Company doesn’t
have to pay SEG
Group any fee for the
use of the aforesaid
trademarks or
symbols.
In the report period, this commitment
was still executed according to the
commitment.
Other commitments (including
additional commitments)
Shenzhen SEG
Group Co.,
Ltd.
According to the
problem of “Your
company’s existing
same industry
competition in the
electronic market
business with SEG
In the report period, controlling
shareholder abided by the above
commitment.SHENZHEN SEG CO., LTD. The First Quarterly Report 2010 (Full Text)
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Group” pointed out
by Shenzhen
Securities Regulatory
Bureau in 2007 at the
spot investigation of
the Company, the
Company received
written Commitment
Letter from SEG
Group on Sep.14,
2007 and the content
was as follows: our
Group has similar
business in Shenzhen
electronic market
with Shenzhen SEG
Co., Ltd. (Shenzhen
SEG), and the
business was resulted
by history and it has
objective market
development
background. The
Group made
commitment: For the
future, we do not
operate on the market
which is similar to
Shenzhen SEG singly
in the same city. The
aforesaid matters
have been disclosed
in Securities Times,
China Securities
Journal and Hong
Kong Wen Wei Po
and Juchao Website
dated Sep. 18, 2007.
In the report period,
the holding company
observed the above
commitment.
3.4 Estimation of accumulative net profit from the beginning of the year to the end of next report
period to be a loss probably or the warning of its material change compared with the same period of
last year and explanation of its reason
√Applicable □Inapplicable
Fore-notice of
performances Carry-back of losses
Year-beginning to the end
of next report period
The same period of
last year Change of increase/decrease (%)
Estimated amount of
accumulative net profit
(RMB’0000)
Approximately 1,600.00 to
2,700.00 -14,608.35 -- --
Basic earnings per share
(RMB/Share) Approximately 0.0204 to -0.1861 -- --SHENZHEN SEG CO., LTD. The First Quarterly Report 2010 (Full Text)
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0.0344
Explanations on
fore-notice of
performances
(1) SEG Samsung in which the Company holds its equity is predicted to suffer a
loss accumulatively from RMB 30 million to RMB 50 million from year-beginning to
end of next report period;
(2) The performance prediction has not been pre-audited by CPAs.
3.5 Other significant events which need explanations
3.5.1 Particulars about securities investment
□Applicable √Inapplicable
3.5.2 Registration form of receiving research, communication and interview in the report period
Date Place Way Objects Discussed main contents and
supplied materials
Jan. 6, 2010 Office of the
Company
Telephone
communication Investors Basic information of the
Company
Feb. 12,
2010
Office of the
Company
Telephone
communication
Holder of B
share
Basic information of the
Company
Mar. 26,
2010
Office of the
Company
Telephone
communication
Holder of B
share
Basic information of the
Company
Apr. 7, 2010 Office of the
Company
Enquire in
written form Securities Daily Got to know relevant public
information of the Company
3.5.3 Explanations of other significant events
√Applicable □Inapplicable
The net profit attributable to owners of parent company disclosed in the 1st quarterly report 2009 was
RMB 2.85 million, but that of the same period of last year disclosed in the report was RMB -88.21
million, with the change amount of RMB -91.06 million. The reason for such change was the net
profit attributable to owners of parent company of SEG Samsung in which the Company holds
22.45% of its equity disclosed in the 1st quarterly report 2009 was RMB-122 million, whereas that of
the same period of last year disclosed in 1st quarterly report 2010 was RMB -504 million. The
Company calculated the investment gains from SEG Samsung based on equity method, which caused
the investment losses of the same period of last year disclosed in this report of the Company
increased by RMB 91.06 million over that disclosed in the 1st quarterly report of 2009.
3.6 Particulars about derivatives investment
□Applicable √Inapplicable
3.6.1 Particulars about derivatives investment held at the end of report period
□Applicable √Inapplicable
§4. Appendix
4.1 Balance sheet
Prepared by Shenzhen SEG Co., Ltd. March 31, 2010 Unit: RMBSHENZHEN SEG CO., LTD. The First Quarterly Report 2010 (Full Text)
9
Balance at period-end Balance at year-beginning
Items Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 498,955,096.86 372,852,381.52 485,135,270.94 375,350,393.53
Settlement provisions
Capital lent
Transaction finance asset
Notes receivable
Accounts receivable 17,234,225.88 400,000.00 18,130,631.40 1,134,357.47
Accounts paid in advance 20,037,842.34 1,081,095.00 18,404,268.08 8,035,295.00
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Interest receivable 2,460,821.92 2,460,821.92 2,460,821.92 2,460,821.92
Dividend receivable
Other receivables 12,042,162.49 45,095,461.39 11,971,998.74 45,306,466.00
Purchase restituted finance
asset
Inventories 1,919,437.27 5,886,392.39
Non-current asset due
within one year
Other current assets
Total current assets 552,649,586.76 421,889,759.83 541,989,383.47 432,287,333.92
Non-current assets:
Granted loans and advances
Finance asset available for
sales 4,229,970.09 3,548,500.00 3,843,571.87 3,304,100.00
Held-to-maturity
investment
Long-term account
receivable
Long-term equity
investment 129,274,947.39 310,372,446.43 119,732,099.86 300,829,598.90
Investment property 438,740,452.42 345,143,558.87 442,502,999.44 347,797,315.91
Fixed assets 210,589,972.75 23,031,843.38 189,516,718.30 23,314,450.93
Construction in progress 9,776,526.68 26,192,075.55
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 4,681,177.38 610,581.39 4,756,432.31 651,865.38
Expense on Research and
Development
Goodwill 10,328,927.82 10,328,927.82
Long-term expenses to be 13,684,505.73 961,414.02 13,041,779.82 1,165,451.06SHENZHEN SEG CO., LTD. The First Quarterly Report 2010 (Full Text)
10
apportioned
Deferred income tax asset 7,586,398.99 5,994,015.93 7,586,398.99 5,994,015.93
Other non-current asset
Total non-current asset 828,892,879.25 689,662,360.02 817,501,003.96 683,056,798.11
Total assets 1,381,542,466.01 1,111,552,119.85 1,359,490,387.43 1,115,344,132.03
Current liabilities:
Short-term loans
Loan from central bank
Absorbing deposit and
inter-bank deposit
Capital borrowed
Transaction financial
liabilities
Notes payable
Accounts payable 7,716,840.38 2,149,017.12 8,225,509.02 2,178,169.12
Accounts received in
advance 90,214,246.12 42,701,579.41 105,563,890.39 65,801,272.52
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 1,172,559.95 24,450.87 4,261,476.99 2,065,724.98
Taxes payable 26,095,556.95 26,470,386.04 24,421,758.66 24,773,634.49
Interest payable
Dividend payable 921,420.73 153,403.29 921,420.73 153,403.29
Other accounts payable 95,328,850.96 37,415,008.77 86,454,289.91 41,932,495.62
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liabilities due
within 1 year
Other current liabilities
Total current liabilities 221,449,475.09 108,913,845.50 229,848,345.70 136,904,700.02
Non-current liabilities:
Long-term loans
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities
Deferred income tax liabilities 22,970,034.63 547,125.71 23,160,034.29 547,125.71
Other non-current liabilities
Total non-current liabilities 22,970,034.63 547,125.71 23,160,034.29 547,125.71
Total liabilities 244,419,509.72 109,460,971.21 253,008,379.99 137,451,825.73
Owner’s equity (or shareholders’SHENZHEN SEG CO., LTD. The First Quarterly Report 2010 (Full Text)
11
equity):
Paid-in capital (or share
capital) 784,799,010.00 784,799,010.00 784,799,010.00 784,799,010.00
Capital public reserve 409,833,425.36 407,164,608.41 396,922,482.95 394,348,208.41
Less: Treasury stocks
Reasonable reserve
Surplus public reserve 102,912,835.67 102,912,835.67 102,912,835.67 102,912,835.67
Provision of general risk
Retained profit -252,672,245.53 -292,785,305.44 -268,431,923.52 -304,167,747.78
Balance difference of
foreign currency translation -536,479.61 -542,916.63
Total owner’s equity attributable
to parent company 1,044,336,545.89 1,002,091,148.64 1,015,659,488.47 977,892,306.30
Minority shareholders’ interests 92,786,410.40 90,822,518.97
Total owner’s equity 1,137,122,956.29 1,002,091,148.64 1,106,482,007.44 977,892,306.30
Total liabilities and owner’s
equity 1,381,542,466.01 1,111,552,119.85 1,359,490,387.43 1,115,344,132.03
4.2 Profit statement
Prepared by Shenzhen SEG Co., Ltd. Jan.-Mar. 2010 Unit: RMB
Amount in this period Amount in last period
Items Consolidation Parent Company Consolidation Parent Company
I. Total operating income 91,307,818.05 28,545,784.89 67,892,989.04 28,312,781.50
Including: Operating income 91,307,818.05 28,545,784.89 67,892,989.04 28,312,781.50
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 64,748,815.05 10,069,765.90 37,235,307.68 6,271,611.87
Including: Operating cost 56,496,489.22 8,821,226.19 31,746,485.69 6,224,508.93
Interest expense
Commission charge and
commission expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal
of insurance contract reserve
Bonus expense of guarantee
slip
Reinsurance expense
Operating tax and extras 3,724,614.30 1,652,232.84 3,012,887.52 1,426,154.86
Sales expenses 1,370,260.25 906,378.64
Administration expenses 6,914,893.78 3,749,113.97 6,753,654.36 3,527,096.41
Financial expenses -3,757,442.50 -4,152,807.10 -3,684,098.53 -3,406,148.33
Losses of devaluation of
asset -1,500,000.00 -1,500,000.00SHENZHEN SEG CO., LTD. The First Quarterly Report 2010 (Full Text)
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Add: Changing income of
fair value (Loss is listed with
“-”)
Investment income (Loss is
listed with “-”) -3,029,152.47 -3,029,152.47 -115,823,698.14 -115,823,699.14
Including: Investment
income on affiliated company
and joint venture
Exchange income (Loss is
listed with “-”)
III. Operating profit (Loss is
listed with “-”) 23,529,850.53 15,446,866.52 -85,166,016.78 -93,782,529.51
Add: Non-operating income 139,079.30 300.00 1,620,912.10 1,486,477.57
Less: Non-operating
expense 41,229.18 100,985.93
Including: Disposal loss of
non-current asset
IV. Total Profit (Loss is listed
with “-”) 23,627,700.65 15,447,166.52 -83,646,090.61 -92,296,051.94
Less: Income tax 5,951,587.04 4,064,724.18 2,313,487.22 450,000.00
V. Net profit (Net loss is listed
with “-”) 17,676,113.61 11,382,442.34 -85,959,577.83 -92,746,051.94
Net profit attributable to
owner’s equity of parent
company
15,759,677.99 11,382,442.34 -88,214,473.65 -92,746,051.94
Minority shareholders’ gains
and losses 1,916,435.62 2,254,895.82
VI. Earnings per share
i. Basic earnings per share 0.0201 0.0145 -0.1124 -0.1182
ii. Diluted earnings per share 0.0201 0.0145 -0.1124 -0.1182
VII. Other consolidated income 12,964,835.24 12,816,400.00 -574,782.68 -682,253.97
VIII. Total consolidated income 30,640,948.85 24,198,842.34 -86,534,360.51 -93,428,305.91
Total consolidated income
attributable to owners of parent
company
28,677,057.42 24,198,842.34 -88,896,727.62 -93,428,305.91
Total consolidated income
attributable to minority
shareholders
1,963,891.43 2,362,367.11
4.3 Cash flow statement
Prepared by Shenzhen SEG Co., Ltd. Jan.-Mar. 2010 Unit: RMB
Amount in this period Amount in last period
Items Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from
operating activities:
Cash received from selling
commodities and providing
labor services
76,838,162.92 8,489,484.28 77,509,335.13 16,793,838.47
Net increase of customer
deposit and inter-bank deposit
Net increase of loan fromSHENZHEN SEG CO., LTD. The First Quarterly Report 2010 (Full Text)
13
central bank
Net increase of capital
borrowed from other financial
institution
Cash received from
original insurance contract fee
Net cash received from
reinsurance business
Net increase of insured
savings and investment
Net increase of disposal of
transaction financial asset
Cash received from interest,
commission charge and
commission
Net increase of capital
borrowed
Net increase of returned
business capital
Write-back of tax received
Other cash received
relating to operating activities 64,583,939.97 35,796,951.03 35,621,486.09 34,108,393.77
Subtotal of cash inflow
arising from operating activities 141,422,102.89 44,286,435.31 113,130,821.22 50,902,232.24
Cash paid for purchasing
commodities and receiving
labor service
34,506,524.28 5,428,566.48 33,515,780.98 4,689,090.60
Net increase of customer
loans and advances
Net increase of deposits in
central bank and inter-bank
Cash paid for original
insurance contract
compensation
Cash paid for interest,
commission charge and
commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff and
workers 11,883,672.35 5,234,585.34 9,605,770.00 4,602,269.51
Taxes paid 23,601,020.70 18,545,462.28 24,959,921.99 18,464,019.40
Other cash paid relating to
operating activities 53,590,151.50 17,876,799.34 31,135,749.73 14,893,005.25
Subtotal of cash outflow
arising from operating activities 123,581,368.83 47,085,413.44 99,217,222.70 42,648,384.76
Net cash flows arising
from operating activities 17,840,734.06 -2,798,978.13 13,913,598.52 8,253,847.48
II. Cash flows arising from
investing activities:
Cash received from
recovering investment 2,198,720.24 2,198,720.24
Cash received from
investment income 5,270,590.49
Net cash received from 15,444.00 141,500.00SHENZHEN SEG CO., LTD. The First Quarterly Report 2010 (Full Text)
14
disposal of fixed, intangible and
other long-term assets
Net cash received from
disposal of subsidiaries and
other operation units
34,229,363.41 38,280,000.00
Other cash received
relating to investing activities
Subtotal of cash inflow
from investing activities 15,444.00 36,569,583.65 45,749,310.73
Cash paid for purchasing
fixed, intangible and other
long-term assets
4,591,584.05 25,336.00 701,547.00 259,480.00
Cash paid for investment 53,030,000.00 53,030,000.00
Net increase of mortgaged
loans
Net cash received from
subsidiaries and other units
Other cash paid relating to
investing activities
Subtotal of cash outflow
from investing activities 4,591,584.05 25,336.00 53,731,547.00 53,289,480.00
Net cash flows arising
from investing activities -4,576,140.05 -25,336.00 -17,161,963.35 -7,540,169.27
III. Cash flows arising from
financing activities
Cash received from
absorbing investment
Including: Cash received
from absorbing minority
shareholders’ investment by
subsidiaries
Cash received from loans
Cash received from issuing
bonds
Other cash received
relating to financing activities
Subtotal of cash inflow
from financing activities
Cash paid for settling debts
Cash paid for dividend and
profit distributing or interest
paying
Including: Dividend and
profit of minority shareholder
paid by subsidiaries
Other cash paid relating to
financing activities
Subtotal of cash outflow
from financing activities
Net cash flows arising
from financing activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
103.53 -117.38
V. Net increase of cash and cash 13,264,697.54 -2,824,314.13 -3,248,482.21 713,678.21SHENZHEN SEG CO., LTD. The First Quarterly Report 2010 (Full Text)
15
equivalents
Add: Balance of cash and
cash equivalents at the period
-beginning
485,135,270.94 375,350,393.53 404,242,883.22 298,174,785.87
VI. Balance of cash and cash
equivalents at the period-end 498,399,968.48 372,526,079.40 400,994,401.01 298,888,464.08
4.4 Auditor’s report
Auditor’s opinions: Un-audited
