Abstract of 2018 Annual Report of Shenzhen SEG Co., Ltd
Stock code: 000058, 200058 Stock abbreviation: SHEN SEG, SHEN SEG B Notice No.: 2019-042
Abstract of 2018 Annual Report of Shenzhen SEG Co., Ltd.
I. Important Notice
The abstract of 2018 Annual Report is excerpted from the full text of 2018 Annual Report. For more details about the operating result,
financial condition, and future development planning, investors shall read carefully the said full text published on the designated media
by China Securities Regulatory Commission (CSRC).
All directors other than the following directors have attended this board meeting and reviewed the annual report.
Position of director not
Name of director not present Reason for absence Name of proxy
present
Zhang Liang Director For work Xu La Ping
Gao Jian Bai Director For work Chen Huijie
Zhang Yu Wang Director For work Chen Huijie
Song Pingping Independent director For work Fan Zhiqing
Notice of non-standard audit opinions
□ Applicable √ Not applicable
Proposal for profit distribution of common shares or proposal for transfer of capital reserves to share capital in the reporting period
reviewed by the Board of Directors
√ Applicable □ Not applicable
Transfer of capital reserves to share capital
□ Applicable √ Not applicable
According to the profit distribution plan deliberated and adopted by the meeting of the Board of Directors, based on 1,235,656,249
share capital, the Company will distribute cash dividend of RMB 0.35 (tax included) for every 10 shares and 0 bonus share (tax
included) to all shareholders, and will not transfer reserves into share capital.
Proposal for profit distribution of preferred shares in the reporting period passed in the resolution of the Board of Directors
□ Applicable √ Not applicable
II. Company Profile
1.Basic Information
Stock abbreviation SHEN SEG, SHEN SEG B Stock code 000058, 200058
Listed on Shenzhen Stock Exchange
Contact and contact
Secretary of the Board of Directors Securities affairs representative
information
Name Peng Aiyun Shi Guangyin
Abstract of 2018 Annual Report of Shenzhen SEG Co., Ltd
31/F, Tower A, Stars Plaza, Huaqiang Road (N), 31/F, Tower A, Stars Plaza, Huaqiang Road (N),
Contact address
Futian District, Shenzhen Futian District, Shenzhen
Fax 0755-8397 5237 0755-8374 7759
Tel. 0755-8374 7939 0755-8397 5237
E-mail segcl@segcl.com.cn shigy@segcl.com.cn
2. Main Business or Products in the Reporting Period
In 2018, the main business of the Company includes electronics markets, commercial property operation and management business,
commercial real estate business, business hotel business, and new energy business. Business model: On the basis of the electronics
markets, commercial property operation and management business, and commercial real estate business, the Company combines
multiple business models, utilizes the overall advantages of resource integration, thus creates a business model combining multiple
business types, and transforms itself into a platform for diversified strategic emerging industries.
In the reporting period, to avoid potential financial risks, the Company transferred 62% of the equity of SEG Credit and ceased
microcredit business. For details of equity transfer, see the Announcement on the Connected Transaction of Transfer of 62% of the
Equity of Shenzhen SEG Credit Co., Ltd. Held by the Company and its Holding Subsidiaries (No. 2018-010) and the Announcement
on the Progress of Transfer of 62% of the Equity of Shenzhen SEG Credit Co., Ltd. Held by the Company and its Holding Subsidiaries
(No. 2018-023) released by the Company in designated information disclosure media.
3. Main Accounting Data and Financial Indexes
(1) Main Accounting Data and Financial Indexes in the Recent Three Years
Are retrospective adjustments made to previous financial statements?
□ Yes √ No
Unit: RMB/Yuan
Year-on-year
2018 2017 2016
increase/decrease
Operating income (Yuan) 1,605,787,472.11 1,981,307,558.23 -18.95% 1,371,044,982.11
Net profit attributable to
shareholders of the listed company 27,852,740.23 219,553,261.10 -87.31% 246,062,783.31
(Yuan)
Net profit attributable to
shareholders of the listed company
17,223,506.49 148,677,556.32 -88.42% 22,248,698.60
after deduction of non-recurring
profit and loss (Yuan)
Net cash flow arising from
167,674,153.73 507,386,549.21 -66.95% 443,535,540.78
operating activities (Yuan)
Basic EPS (Yuan/share) 0.0225 0.1777 -87.34% 0.1991
Diluted EPS (Yuan/share) 0.0225 0.1777 -87.34% 0.1991
Abstract of 2018 Annual Report of Shenzhen SEG Co., Ltd
Weighted average ROE 1.47% 11.96% -10.49% 11.15%
Year-on-year
End of 2018 End of 2017 End of 2016
increase/decrease
Total assets (Yuan) 7,128,009,738.20 6,992,590,420.75 1.94% 6,923,273,093.64
Net assets attributable to
shareholders of the listed company 1,867,881,216.44 1,917,228,370.15 -2.57% 2,412,301,070.04
(Yuan)
(2) Major Quarterly Financial Indexe
Unit: RMB/Yuan
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Operating income 391,140,155.46 491,797,933.21 561,704,545.25 161,144,838.19
Net profit attributable to shareholders of the
62,622,931.80 35,044,056.14 40,399,673.95 -110,213,921.66
listed company
Net profit attributable to shareholders of the
listed company after deduction of 27,128,268.89 15,894,541.24 35,513,724.94 -61,313,028.58
non-recurring profit and loss
Net cash flow from operating activities -1,165,334.33 27,272,351.65 62,306,651.80 -10,057,214.63
Are there any significant differences between the financial indexes or their totals in the preceding table and those described in the
disclosed quarterly reports or semi-annual reports?
√ Yes No
Main financial indicators of the above points quarter, excluding non-recurring gains and losses attributable to shareholders of
listed companies of the amount is in the second quarter net profit index has to disclose semi-annual report to reduce the amount of
$9834062 a first, the main reason for the semi-annual report data to the company without audit, annual report audit increases after seg
small credit loans impairment loss to sell deducting non-recurring gains and losses net profit to reduce, but at the same time increase
the sale of seg small loan investment 9834062 RMB first, so in the second quarter net profit attributable to shareholders of listed
companies are not affected.
4. Information on Shareholders
(1) Number of ordinary shareholders and number of preferred shareholders restored with the voting rights,
and information on top 10 shareholders
Unit: Share
Total number of Total number of Total number of Total number
74,761 70,146 0 0
ordinary ordinary preferred of preferred
Abstract of 2018 Annual Report of Shenzhen SEG Co., Ltd
shareholders at the shareholders at the shareholders shareholders
end of the reporting end of the month restored with the restored with
period immediately before voting rights the voting
the disclosure of the rights at the
annual report end of the
month
immediately
before the
disclosure of
the annual
report
Information on top 10 shareholders
Information on pledged or
Shareholding Quantity of restricted shares
Name of shareholder Nature of shareholder frozen shares
percentage held
Share status Quantity
Shenzhen SEG Group Co.,
State-owned legal person 56.70% 450,857,239 / /
Ltd.
Liu Guocheng Domestic natural person 0.57% / /
Liu Guohong Domestic natural person 0.26% / /
Gong Qianhua Overseas natural person 0.24% / /
Domestic
China Securities Finance
non-state-owned legal 0.18% / /
Corporation Limited
person
Xu Yue Ying Domestic natural person 0.15% / /
Shanghai Juzhang Domestic
Investment Management non-state-owned legal 0.14% / /
Co., Ltd. person
Zeng Ying Domestic natural person 0.12% / /
China Hi-tech Group
State-owned legal person 0.12% / /
Corporation
Chongqing international
trust co., LTD. -
Fund, financial products,
chongqing innovation 0.10% / /
etc
superiority to pick two
letter collection trust funds
Shenzhen SEG Group Co., Ltd has no association with other shareholders, nor
Explanations on the association relationship or it is a concerted action unit as described by the Management Methods for
concerted action among the above-mentioned Disclosure of Information on Changes in Shareholding Status of Shareholders
shareholders of Listed Companies It is unknown whether other shareholders have an
association relationship or are concerted action units or not.
Abstract of 2018 Annual Report of Shenzhen SEG Co., Ltd
Information on shareholders participating in financing
None.
business (if any)
(2) Number of preferred shareholders, and information on top 10 preferred shareholders
□ Applicable √ Not applicable
In the reporting period, preferred shareholders do not hold shares.
(3) Block diagram of the property rights and controlling relationship between the Company and its actual
controller
State-owned Assets
Supervision and 100% Shenzhen Oriental China Great Wall Shenzhen Kunpeng
Shenzhen Capital
Administration Fortune Capital Asset Management Equity Investment
Co., Ltd.
Commission of Co., Ltd. Co., Ltd. Co., Ltd.
Shenzhen
42.85% 26.12% 13.72 9.8% 7.51%
Shenzhen SEG Group Co., Ltd.
56.7%
Shenzhen SEG Co., Ltd.
5. Information on corporate bonds
Has the Company issued and listed on the stock exchange corporate bonds that are not due or due but cannot be repaid in full on the
approved release data of the annual report?
Yes
(1)Basic Information about Corporate Bonds
Bond Bond balance (RMB
Bond name Bond code Maturity date Interest rate
abbreviation 10,000)
Corporate bonds publicly issued by
Shenzhen SEG Co., Ltd. to qualified 18 SEG 01 112836.SZ 2021-12-25 70,000 4.60%
investors in 2018 (1st issue) (category 1)
Corporate bonds publicly issued by
18 SEG 02 112837.SZ 2020-06-25 10,000 4.15%
Shenzhen SEG Co., Ltd. to qualified
Abstract of 2018 Annual Report of Shenzhen SEG Co., Ltd
investors in 2018 (1st issue) (category 2)
Repayment of the principal and interest of corporate bonds
None
in the reporting period
(2)Rating of Corporate Bonds
According to the regulations of the regulatory authorities and the tracking rating system of CSCI Pengyuan Credit Rating Co., Ltd.
(hereinafter referred to as "CSCI Pengyuan"), after the initial rating was completed on November 2, 2018, during the life of the bonds
subject to rating, CSCI Pengyuan will carry out a regular tracking rating and disclose regular tracking results within two months after
the disclosure of the Company's annual report. During the life of the bonds, CSCI Pengyuan will also carry out irregular tracking
ratings as the case may be. In the process of tracking rating, CSCI Pengyuan will maintain the consistency of the rating standards.
CSCI Pengyuan will keep eyes on information about the rated object, and will promptly carry out irregular tracking ratings as it thinks
necessary. CSCI Pengyuan will analyze relevant matters and decide whether to adjust the credit rating of the rated object.
If the Company does not cooperate on due diligence for tracking rating or fails to provide information for tracking rating, CSCI
Pengyuan shall have the right to analyze public information about the rated object, adjust the credit rating, and if necessary, may
announce the credit rating temporarily invalid or terminated.
CSCI Pengyuan will timely publish tracking rating reports in its website (www.cspengyuan.com), website of the Stock Exchange, and
website of Securities Association of China, and shall disclose such reports in the website of the Stock Exchange no later than
disclosure in other channels.
CSCI Pengyuan, formerly known as Pengyuan Credit Rating Co., Ltd., was renamed to CSCI Pengyuan Credit Rating Co., Ltd. on
November 5, 2018. The website of CSCI Pengyuan was changed from www.pyrating.cn to www.cspengyuan.com.
According to the initial rating of the corporate bonds by CSCI Pengyuan on November 2, 2018, the credit rating of the corporate bonds
is AAA, the long-term credit rating of the issuer is AA, and the outlook for rating is stable. For details, see the Credit Rating Report for
Corporate Bonds Publicly Issued to Qualified Investors in 2018 disclosed by the Company in http://www.cninfo.com.cn on December
20, 2018.
(3)Main Accounting Data and Financial Indicators of the Company for Recent Two Years As of the End of
the Reporting Period
Unit: RMB 10,000
Item 2018 2017 Change year on year
Asset-liability ratio 65.63% 63.09% 2.54%
EBITDA-to-total-debt ratio 11.54% 35.07% -23.53%
Interest coverage ratio 1.97 3.98 -50.62%
III. Management Discussion and Analysis
1. Overview
Should the Company abide by the disclosure requirements of special industries?
Abstract of 2018 Annual Report of Shenzhen SEG Co., Ltd
Yes.
Real estate industry
In 2018, by more efforts in control, integration and upgrading, the company promoted the transformation and upgrading of
electronics markets, continuously improved the service quality of electronics markets, and created a business model combining
multiple business types so as to maintain stable business in electronics markets and continuously consolidate the industry position of
electronics markets. At the same time, by promoting refined management and being dedicated to user value, the Company
continuously improved service quality so that the quality and efficiency of property management were significantly improved and
property operation saw a steady rise. Driven by reform and guided by innovation, the Company actively explored the deployment of
strategic emerging industries. Its first production line for the PV industry was completed and put into trial production. SegMaker+,
smart parking lots, and other new projects achieved preliminary results. Based on the existing industrial business, supported by
investment, mergers & acquisitions, reform, and innovation, the Company continuously expanded the industrial chain, actively
transformed itself into a platform for diversified strategic emerging industries, and continuously enhanced and strengthened its core
competitiveness and sustainable development capabilities
2. Are there significant changes in main business in the reporting period?
□ Yes √ No
3. Information on products accounting for over 10% of operating income or operating profit
□ Yes √ No
4. Are there seasonal or cyclical characteristics of the operation needing special attention?
□ Yes √ No
5. Notes to significant changes in the operating income, operating costs, total net profit attributable to
common shareholders of the listed company, or composition in the reporting period over the previous
reporting period
Applicable Not applicable
During the reporting period, the Company's total business income was about 1.612 billion yuan, down 418 million yuan from the
same period last year, with a decline of 20.60%; and the total profit was about 94 million yuan, down by about 346 million yuan from
the same period last year, with a decline of 77.98%. The main reasons for the decline in income are: ① The sales of SEG New Urban
decreaed by 131 million yuan compared with the same period last year; and ② The Company disclosed the Annouancement of
Prompting Risks of the Issues Relating to the Controlled Sub-subsidiary Receivng the Notice of Cancelling Contract on April 16, 2019,
based on the provisions of ASBE No. 29 Matters After the Date of Balance Sheet, during the period between the said date and the date
of being approved for submittal, the sales of products confirmed in the period when the Balance Sheet locates or the previous period
must be transferred back to the matters after the date of Balance Sheet to be adjusted, the Balance Sheet, which was prepared on the
said date, shall be adjusted accordingly. Consequently, the Company transferred back the sales of Floors 2 to 5 of Buildding 1 of SEG
New Urban Phase I leading to the deduction of approximately 300 million yuan in this reporting period. The main reasons for the
decline in total profit are: ① The profit of Huakong SEG, the shareholding company, decreaded compared with the same period last
year, leading to the deduction of 26 million yuan of total profit of the Company; ② In the reporting period, the Company accrued the
Abstract of 2018 Annual Report of Shenzhen SEG Co., Ltd
provision of asset impairment, increasing by about 80 million yuan; ③ In the reporting period, because of delaying the delivery of
reeal estate and postponing the completion of the procedures of applying for ownership certificate, the compensation of breaching
contract is estimated to make the total profit decrease by 123 million yuan; ④ The tranferring back the sales of Floors 2 to 5 of
Buildding 1 of SEG New Urban Phase I resulted in the deduction of 77 million yuan of total profit; and ⑤ Because the financial
expense increaed owing to the completion of real estate project which stopped the securitization of financial expense, and the
Company saved the management expense, these two factors made the period expenses rose by about 35 million yuan on yeay onyeay
basis.
6. Information on Listing Suspension or Abortion
□ Applicable √ Not applicable
7. Information on Financial Report
(1) Information on changes in accounting policies, accounting estimates and accounting methods compared
with the financial reports of the last year
√ Applicable Not applicable
On June 15, 2018, the ministry of finance issued the notice on the revision and issuance of the format of general financial
statements of enterprises for the year 2018 (caijing [2018] no. 15), requiring non-financial enterprises that implement the accounting
standards for enterprises to prepare financial statements in accordance with the accounting standards and notification requirements for
enterprises. The company shall change the format of the financial statements in accordance with the requirements of the
above-mentioned financial and accounting document no. 15 [2018].
(2) Information on retroactive restatements in corrections of major accounting errors in the reporting
period
□ Applicable √ Not applicable
There is no retrospective restatement due to corrections on significant accounting errors in the reporting period.
(3) Information on changes in the scope of consolidation compared with the financial report of the last year
√ Applicable Not applicable
Compared with the previous period, the number of subjects included in the consolidated financial statements of the current period
increased by 1 and decreased by 3, among which:
1. Subsidiaries newly incorporated into the scope of merger in the current period, special purpose subjects, and operating entities that
form control rights through entrusted operation or lease
Company name Reason for change
Hangzhou SEG Longyan Energy Technology Co., Ltd. Newly established
2. Subsidiaries, special purpose entities and operating entities that have lost control by means of entrusted operation or leasing that are
no longer included in the scope of merger in the current period
Company name Reason for change
Shenzhen SEG Credit Co., Ltd Transfer of all the equity
Abstract of 2018 Annual Report of Shenzhen SEG Co., Ltd
Xi'an Fengdong New Town SEG Times Plaza Properties Co., Company cancellation
Ltd.
Yantai SEG times square development co. LTD Company cancellation
