Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2009 (Full Text)
1
Shenzhen SEG Co., Ltd.
The Third Quarterly Report for 2009
(Full Text)
§1. Important Notes
1.1 Board of Directors and the Supervisory Committee of Shenzhen SEG Co., Ltd. (hereinafter
referred to as the Company) and its directors, supervisors and senior executives hereby confirm that
there are no any fictitious statements, misleading statements, or important omissions carried in this
report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and
completion of the whole contents.
1.2 All the directors presented the board meeting on discussing the Third Quarterly Report except
for the following directors.
Name of absent
directors
Posts of absent
directors
Reasons for absence
from the meeting
Name of entrustee
Jia Heting Independent Director Business Engagement Yang Rusheng
1.3 The Third Quarterly Financial Report of 2009 has not been audited by CPAs.
1.4 Zhang Weimin, Person in Charge of the Company; Li Lifu, Person in Charge of Accounting
Work; Ying Huadong, Person in Charge of Accounting Organization (Accounting Officer) hereby
confirm that the Financial Report of the Third Quarterly Report is true and complete.
§2. Company Profile
2.1 Main accounting highlights and financial indexes:
Unit: RMB
Sep. 30, 2009 Dec. 31, 2008 Increase/decrease scope
(%)
Total assets (RMB) 1,482,483,593.90 1,579,346,581.33 -6.13%
Owners’ equities attributable to the
shareholders of listed company (RMB) 1,130,444,369.63 1,297,772,121.85 -12.89%
Share capital (Share) 784,799,010.00 784,799,010.00 0.00%
Net assets per share attributable to the
shareholders of listed company
(RMB/Share)
1.44 1.65 -12.73%
July-Sep. 2009
Increase/decrease
over the same
period of the last
year (%)
Jan.-Sep. 2009
Increase/decrease
over the same
period of the last
year (%)
Total operating income (RMB) 69,649,034.41 -11.55% 207,531,519.48 -7.97%
Net profit attributable to the
shareholders of listed company (RMB) -33,284,043.64 -- -179,367,562.66 --
Net cash flow arising from operating
activities (RMB) - - 53,732,623.69 55.66%
Net cash flow arising from operating
activities per share (RMB/Share) - - 0.07 55.66%
Basic earnings per share (RMB/Share) -0.0424 -- -0.2286 --
Diluted earnings per share (RMB/Share) -0.0424 -- -0.2286 --
Return on equity (%) -2.94% -3.80% -15.87% -18.93%Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2009 (Full Text)
2
Return on equity after deducting
non-recurring gains and losses (%) -4.72% -5.67% -22.44% -25.36%
Unit: RMB
Items of non-recurring gains and losses Amount from year begin to
the end of report period Remarks
Gains/losses from the disposal of non-current assets 81,118,913.08
Reversal of provisions for asset impairment of account
receivable which is made singly impairment test 3,900,000.00
Other non-operating income and expense excluded the
aforementioned business 1,871,101.69
Impact on income tax -12,530,358.96
Total 74,359,655.81 -
2.2 Total number of shareholders at the end of the report period and shares held by the top ten
shareholders with unrestricted conditions
Unit: Share
Total number of shareholders
at the end of report period 67,864
Particulars about the shares held by the top ten shareholders with unrestricted conditions
Full Name of shareholder Unrestricted shares held Type of shares
SHENZHEN SEG GROUP CO., LTD. 237,359,666 RMB common share
GUANGZHOU FODAK ENTERPRISE
GROUP CO., LTD. 18,880,334 RMB common share
Taifook Securities Company
Limited-Account Client 5,550,303 Domestically listed foreign share
XU XIN HU 3,847,490 Domestically listed foreign share
GUOTAI JUNAN
SECURITIES(HONGKONG) LIMITED 3,448,257 Domestically listed foreign share
SHANGHAI QILE ECONOMIC AND
TRADE CO., LTD. 2,804,330 RMB common share
LIU ZI LI 2,799,000 Domestically listed foreign share
ZHUANG JING PING 2,075,000 RMB common share
NORGES BANK 1,890,226 Domestically listed foreign share
JI HONG TAO 1,770,000 RMB common share
§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)Items of balance sheet
1. Account receivable: RMB 17,602,200 was decreased, 47.50% down over the same period-end of
last year, which was mainly due to that: the Company sold equities of its subsidiary-Shenzhen SEG
Communications Co., Ltd. (referred to SEG Communications later) in this report period, while
account of RMB 23.52 million receivable from SEG Communications was consolidated by the
Company in the same period-end of last year, which didn’t happen at the end of this report period.
2. Other receivable: RMB 18,440,600 was increased, 120.89% up over the same period-end of lastShenzhen SEG Co., Ltd. The Third Quarterly Report for 2009 (Full Text)
3
year, which was mainly due to that: the Company newly consolidated Changsha Xinxing
Development Co., Ltd. (referred to Changsha Xinxing later) in this report period, thus
correspondingly consolidated RMB 24.58 million, the other receivables of Changsha Xinxing, at the
end of this period.
3. Inventory: RMB 3,183,100 was decreased, 57.71% down over the same period-end of last year,
which was mainly due to that: inventory of RMB 4.81 million was consolidated by the Company at
period-end of last year from SEG Communications, while no such consolidation happened at
period-end of this year.
4. Long-term equity investment: RMB 314,488,600 was decreased, 56.29% down over the same
period-end of last year, which was mainly due to that: in this report period, Shenzhen SEG Samsung
Co., LTD. (referred to SEG Samsung later) which absorbed stock investment from the Company
made a loss of RMB 1,324,210,500. For that, the Company correspondingly reduced RMB
297,347,700 in long-term equity investment.
5. Fixed assets: RMB 142,064,300 was increased, 242.47% up over the same period-end of last year,
which was mainly due to that: the fixed assets of Changsha Xinxing amounting to RMB 150,967,800
were newly consolidated in this report period.
6. Construction in progress: RMB 12,104,400 was increased, 1,282.22% up over the same period-end
of last year, which was mainly due to that: the construction in progress of Changsha Xinxing
amounting to RMB 10,828,600 was newly consolidated in this report period.
7. Goodwill: RMB 9,986,600 was increased over the same period-end of last year, which was mainly
due to the balance between the investment cost paid by the Company in this period for purchasing
46% equities of Changsha Xinxing and fair value quotient of recognizable assets of Changsha
Xinxing.
8. Short-term loans: RMB 1.75 million was decreased, 100% down over the same period-end of last
year, which was mainly due to that: short-term loans of RMB 1.75 million were consolidated by the
Company from SEG Communications at period-end of last year, while no such consolidation
happened at period-end of this year.
9. Account payable: RMB 10,952,500 was decreased, 35% down over the same period-end of last
year, which was mainly due to that: account payable of RMB 26.41 million was consolidated by the
Company from SEG Communications at period-end of last year, while no such consolidation
happened at period-end of this year.
10. Account received in advance: RMB 34,741,500 was decreased, 30.07% down over the same
period-end of last year, for rent received in advance at period-end of last year had been confirmed as
operating income for individual month.
11. Tax payable: RMB 11,303,100 was increased, 107.13% up over the same period-end of last year,
which was mainly due to the increase of enterprise income tax payable for this report period.
12. Deferred income tax liability: RMB 22,893,900 was increased, 7,812.53% up over the same
period-end of last year, which was mainly due to that: the deferred income tax liability of Changsha
Xinxing amounting to RMB 22,893,900 was newly consolidated in this report period.
(II)Items of profit statement
1. Operating expenses: RMB 7,764,800 was decreased, 80.58% down year-on-year, which was
mainly due to that: the Company sold equities of SEG Communications and Chongqing SEG
Electron Market Co., Ltd. (referred to Chongqing SEG later) in this report period, thus operating
expenses occurred after the trading day had not been consolidated any longer.
2. Financial expenses: RMB 10,679,600 was decreased year-on-year, which was mainly due to that:
no bank loan interests occurred during the report period, besides, part bank savings of the Company
were transferred to be fixed deposit, which brought increase in interest income.Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2009 (Full Text)
4
3. Assets impairment loss: RMB 2,240,800 was decreased year-on-year, which was mainly due to
that: the Company received the arrearage from Shenzhen SEG Dasheng Co., Ltd. (referred to
Shendasheng later) in this report period, so depreciation reserve of RMB 3.9 million withdrawn in
previous period was switched back.
4. Investment income: RMB 263,826,900 was decreased year-on-year, which was mainly due to that:
SEG Samsung made a loss of RMB 1,324,210,500 in this report period, thus the Company decreased
long-term equity investment of RMB 297,347,700.
5. Income tax expenses: RMB 19.61 million was increased year-on-year with increase rate of
243.63%, which was mainly due to that: the Company sold equities of SEG Samsung, Shenzhen SEG
GPS Scientific Navigations Co., Ltd. (referred to SEG GPS later), SEG Communications and
Chongqing SEG in this report period, which brought increase of RMB 70.98 million in income tax
payable and RMB 14.19 million in income tax expenses.
(III)Items of cash flow statement
1. Various taxes paid: RMB 29,145,700 was decreased year-on-year with decrease rate of 31.80%,
which was mainly due to that: the Company sold equities of SEG Communications and Chongqing
SEG in this report period, thus no amount of this item occurred from the two companies after the
trading day had been consolidated.
2. Cash received from disposal of investment: RMB 96,317,600 was decreased year-on-year with
decrease rate of 52.20%, which was mainly due to that: in the same period of last year, the Company
received RMB 184.51 million for it sold equities of Shenzhen SEG Zhongdian Color Display Co.,
Ltd. at the end of 2007. Meanwhile, during this report period, the Company totally received RMB
88,192,400 for transferring equities of SEG Samsung, SEG GPS and Shendasheng, etc.
3. Cash received from returns on investments: RMB 3,528,600 was increased year-on-year with
increase rate of 44.6%, which was mainly due to that: the Company received more bonuses from
invested companies in this report period year-on-year.
4. Net cash received from disposal of fixed assets, intangible assets and other long-term assets: RMB
2,798,900 was decreased year-on-year with decrease rate of 86.53%, which was mainly due to that:
the Company reduced sales of fixed assets in this period year-on-year.
5. Net cash received from disposal of subsidiaries and other business entities: RMB 24,476,600 was
increased year-on-year, which was mainly due to the increasing cash flow-in arising from selling
SEG Communications and Chongqing SEG in the report period.
6. Cash paid for purchasing and constructing of fixed assets, intangible assets and other long term
assets: RMB 9,929,300 was increased year-on-year with increase rate of 257.89%, which was mainly
due to the decoration expenses occurred by Changsha Xinxing in the report period.
7. Net cash paid for acquisition of subsidiaries and other business entities: RMB 67,801,300 was
increased year-on-year, which was mainly due to that the Company purchased equities of Changsha
Xinxing in the report period, and paid RMB 69 million for this purchase.
8. Other cash paid relating to investing activities: RMB 3.88 million was decreased year-on-year with
decrease rate of 63.52%, which was mainly due to that: the Company sold equities of SEG
Communications and Chongqing SEG in this report period, thus amount of this item occurred after
the trading day had not been consolidated any longer.
9. Cash received from loans: RMB 60 million was decreased year-on-year, which was mainly due to
that: the Company obtained bank loan amounting to RMB 60 million in the same period of last year,
while no such bank loan happened in this report period.
10. Cash paid for settling the debts: RMB 94,939,700 was decreased year-on-year, which was mainly
due to that: the Company returned bank loans in the same period of last year, while the Company had
no bank loans in this report period.Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2009 (Full Text)
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3.2 Progress of significant events, their influences, and analysis and explanation of their solutions
□Applicable √Inapplicable
3.3 Implementations of commitments by the Company, shareholders and actual controller
√Applicable □Inapplicable
Commitments Content of commitments Implementation
Commitments for Share Merger
Reform
Shareholders of non-tradable A
shares make relative legal
commitments in accordance
with Measures for the
Administration of the Share
Merger Reform of Listed
Companies and implement the
commitments. The commitments
are: not trading or transferring
shares within 12 months from
the day of implementation of the
reform; after the aforementioned
time limitation was due, expired,
if shareholders of original
non-tradable A shares with a
stake over 5% were to sell the
original non-tradable A shares
through listing in stock
exchange, the sales volume
should be no more than 5% of
the total of the Company within
12 months and no more than
10% within 24 months.
The original non-circulating shareholders
involved in this share merger reform all have
implemented their commitments.
Commitments on share restriction
for trading Naught Inapplicable
Commitments made in Acquisition
Report or Reports on Change in
Interests
Naught Inapplicable
Commitments made in Material
Assets Reorganization Naught Inapplicable
Commitments made in issuing
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
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
In the report period, this commitment was still
implemented according to the commitment.Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2009 (Full Text)
6
during the operation process; the
Company doesn’t have to pay
SEG Group any fee for the use
of the aforesaid trademarks or
symbols.
Other commitments (including
additional commitments)
1. According to the problem of
“Your company’s existing same
industry competition in the
electronic market business with
SEG Group” appointed by
Shenzhen Securities Regulatory
Bureau in 2007 at the spot
investigation of the Company,
the Company received SEG
Group’s Consent Letter on
Sep.14, 2007, with the content
as follows: Our company’s
familiar business in electronic
market of Shenzhen with
Shenzhen SEG Group Co. Ltd.
occurred on the basis of
historical reasons and had
objective market developing
background. Our Group
promised that we will not have
business single in the same city
with Shenzhen SEG. The matter
has been disclosed on China
Securities, Securities Times,
Hong Kong Wen Wei Po and
http://www.cninfo.com.cn dated
Sep. 18, 2007.
2. On Oct. 18th of 2007, SEG
Group, the first largest
shareholder of the Company,
issued Commitment Letter on
Strengthening Management over
Non-public Information to the
Company and Shenzhen
Securities Regulatory Bureau, in
which it was promised that our
company would establish and
perfect the internal control
management over the acquired
non-public information of listed
companies; supervise the
relevant information insider in
our company and the actual
controllers of the company not
to buy the securities of your
company taking advantage of
the non-public information of
your company; not suggest
others to trade the securities of
your company; not to leak the
non-public information of your
company and offer the list of
In the report period, SEG Group has
implemented the aforementioned commitment.Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2009 (Full Text)
7
insider in our company and
actual controllers of our
company knowing the
non-public information of your
company and your company
could hand this name list to
Shenzhen Securities Regulatory
Bureau and Shenzhen Stock
Exchange for records.
3.4 Estimation of accumulative net profit from the beginning of the year to the end of next report
period to be loss probably or the warning of its material change compared with the corresponding
period of the last year and explanation of reason
√Applicable □Inapplicable
Forecast of performances Losses
Year-begin 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)
-19,000 to -24,000.00 4,857.95 Declined
Basic earnings per
share(RMB/Share) -0.2421 to -0.3058 0.0619 Declined
Explanations on forecast
of performances
The main reasons for the losses of the Company: SEG Samsung which was calculated
by the Company according to equity method was predicted to be in losses of RMB 1.35
billion to RMB 1.55 billion till the end of year
3.5 Particulars about the other significant events which needed explanations
1. As the information the Company disclosed in Semi-annual Report 2009, that the Company indicted
the defendant - Shenzhen SEG Commercial Machine Co., Ltd. (hereinafter referred to as Commercial
Machine Co., Ltd.) and Li Zhongda about the loan and guarantee contract dissension case, with the
object executed RMB 2,819,996.61, including the principal RMB 1,967,152, the interest RMB
733,233.39, and the overdue interest RMB 104,864.72. The opposite party should bear RMB
14,746.50, which is the expense for the first trial. On February 17, 2009, the Company received the
account of RMB 609,693.29 through China Everbright Bank from Shenzhen Futian District People's
Court, which was the repayment the defendants SEG Commercial Machine Co., Ltd and Li Zhongda
owned to the Company. After the Company received the account, the account receivable from SEG
Commercial Machine Co., Ltd and Li Zhongda owned to the Company was reduced. On August 14,
2009, the Company reached reconciliation and signed Reconciliation Agreement with the defendants.
Till then, the case was executed completely.
2. As for the lawsuit on guarantee for expired loan amounting to RMB 10 million of Shendasheng
from Shenzhen Development Bank disclosed in the Semi-annual Report 2009, the Company reached
Executing Reconciliation Agreement with Shendasheng and Guangzhou Borong Investment Co., Ltd.
through presidence and mediation by the court on October 13, 2009. Details refer to Notice on
Progress of Significant Lawsuits of Shenzhen SEG Co., Ltd. published on Securities Times, China
Securities Journal, Hong Kong Wen Wei Po and http://www.cninfo.com.cn dated November 7, 2008.
After signing Executing Reconciliation Agreement, Shendasheng performed the duty of payment
strictly according to the time and amount prescribed by Executing Reconciliation Agreement. Till
August 26, 2009, Shendasheng completed the performance of the full payment duty in advance. Due
to the case was completely executed, it was expected that the profit of the Company in 2009 would
increased RMB 3.9 million.
3. As the information the Company disclosed in Semi-annual Report 2009, that the CompanyShenzhen SEG Co., Ltd. The Third Quarterly Report for 2009 (Full Text)
8
reducing 22.5% equities holding of SEG GPS, through public hanging for transfer in Shenzhen
Assets and Equity Exchange, there was one intended transferee who accorded with the qualification,
who was united purchaser of natural persons Chen Zhangyin and Liu Zhiwei, at the price of RMB
49,607,200. On September 18, 2009, the Company respectively signed Equity Transfer Contract with
Chen Zhangyin and Liu Zhiwei, which agreed that Chen Zhangyin purchased 13.5% equities of SEG
GPS at the price of 29,764,320 and Liu Zhiwei purchased 9% equities of SEG GPS at the price of
19,842,880. Details refer to Notice on Price Bidding Result of Transferring 22.5% Equities Shenzhen
SEG GPS Scientific Navigations Co., Ltd. held by Shenzhen SEG Co., Ltd. published on Securities
Times, China Securities Journal, Hong Kong Wen Wei Po and http://www.cninfo.com.cn dated
September 22, 2009. Till the end of the report period, the Company received the total payment of
equity transfer and completed all the procedure. The relevant matters about the equity transfer had
been completed. This deal increased investment income of RMB 18.07 million for the Company and
net profit attributed to listed company of RMB 14.29 million after deducting tax.
4. As the information the Company disclosed in Semi-annual Report 2009, that Changsha Xinxing
whose 46% equities was held by the Company made use of its main property-Changsha Xinxing
Hotel to hold electron market and do matching service, the progress of which was as follows: till the
date of disclosing the report, the dismantlement of old decoration and about 50% of alteration was
completed, merchant inviting work was fully started and began to sign relevant business contract
with shop owners.
5. The 27th Extraordinary Meeting of the 4th Board of Directors held on July 23, 2009 discussed and
approved Proposal on Controlling Subsidiary of the Company’s Investing and Holding Buy-it Store,
according to the development plan for making experiment and promotion of new operation mode of
electron market in 2009, the subsidiary whose 91.79% equities was held by the Company – Shenzhen
SEG Industry Investment Co., Ltd. held Buy-it Store (hereinafter referred to as the Project) on the 3rd
Floor, Phase II in SEG Electron Market. The implementation of the Project would help to build
national purchase and logistics platform and after-service platform of SEG Electronic Market. Details
refer to Resolution Notice on the 27th Extraordinary Meeting of the 4th Board of Directors of
Shenzhen SEG Co., Ltd. published on Securities Times, China Securities Journal, Hong Kong Wen
Wei Po and http://www.cninfo.com.cn dated July 24, 2009. Buy-it Store operated well since it started
on October 1, 2009.
6. The 29th Extraordinary Meeting of the 4th Board of Directors held on September 7, 2009 discussed
and approved Proposal on Providing Loan of RMB 40 million to Changsha Xinxing Development
Co., Ltd., which agreed to provide loan of RMB 40 million to Changsha Xinxing Development Co.,
Ltd. (taking 100% capital of Changsha Xinxing needs), with the term of 1 year. The capital annual
occupation rate of the loan was calculated by the bank loan rate at the same time. Changsha Xinxing
and its owned property – Changsha Xinxing Hotel (whose evaluated value was RMB 153.5 million)
was mortgaged to the Company as pawn and timely dealt with relevant registration procedure.
Details refer to Resolution Notice on the 29th Extraordinary Meeting of the 4th Board of Directors of
Shenzhen SEG Co., Ltd. published on Securities Times, China Securities Journal, Hong Kong Wen
Wei Po and http://www.cninfo.com.cn dated September 9, 2009. At present, the matters about the
loan were strictly implemented as the resolution of the Board.
7. In September 2009, SEG Electron Market was appraised as Specialized Market of Shenzhen Top
Ten Brand Affecting China in the activity of promoting Shenzhen Top Ten Brand Affecting China
which hosted by Shenzhen Special Zone Newspaper and Shenzhen Trade Promotion Council.
3.5.1 Activities on receiving research, communication and interview in the report period
Date Place Way The received
parties
Contents discussed and
materials supplied
Aug. 24, 2009 The Company Telephone Shareholder Progress of transferring equities ofShenzhen SEG Co., Ltd. The Third Quarterly Report for 2009 (Full Text)
9
communication SEG GPS held by the Company
Sep. 25, 2009 The Company Telephone
communication Shareholder Progress of transferring equities of
SEG GPS held by the Company
Sep. 28, 2009 The Company Telephone
communication Shareholder Get to know the basic information
of the Company
3.6 Particulars about derivatives investment
□Applicable √Inapplicable
3.6.1 Particulars about the positions of derivatives investment at the end of report period
□Applicable √Inapplicable
§4. Appendix
4.1 Balance sheet
Prepared by Shenzhen SEG Co., Ltd. Sep. 30, 2009 Unit: RMB
Balance at Items Consolidation pePriaorde-netn Cd ompany ConsolBidaaltaionnce at yePara-rbeengt iCn ompany
Current assets:
Monetary funds 471,494,324.48 345,592,524.65 404,242,883.22 298,174,785.87
Settlement provisions
Capital lent
Transaction finance asset
Notes receivable
Accounts receivable 19,451,902.18 484,263.50 37,054,146.68 114,405.00
Accounts paid in advance 20,359,038.84 8,231,170.38 17,057,981.59 103,686.00
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Interest receivable
Dividend receivable 9,003,495.72
Other receivables 33,695,214.36 40,660,265.27 15,254,619.90 5,126,240.74
Purchase restituted finance
asset
Inventories 2,333,011.89 5,516,156.86
Non-current asset due
within one year
Other current assets
Total current assets 547,333,491.75 394,968,223.80 479,125,788.25 312,522,613.33
Non-current assets:
Granted loans and
advances
Finance asset available for 3,456,633.62 3,075,544.38 3,430,544.62 3,240,000.00Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2009 (Full Text)
10
sales
Held-to-maturity
investment
Long-term account
receivable
Long-term equity
investment 244,242,440.15 425,550,039.55 558,731,067.54 699,626,421.58
Investment property 447,063,546.46 351,249,072.95 458,389,203.22 359,248,359.77
Fixed assets 200,654,943.33 23,488,579.03 58,590,599.71 24,141,470.09
Construction in progress 13,048,450.18 218,000.00 944,020.90 144,020.90
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 505,248.44 437,620.32 696,404.07 603,250.98
Expense on Research and
Development
Goodwill 9,986,646.66 0.00
Long-term expenses to be
apportioned 9,082,290.98 925,916.29 10,446,371.09 289,203.75
Deferred income tax asset 7,109,902.33 5,715,052.39 8,992,581.93 6,417,052.39
Other non-current asset
Total non-current asset 935,150,102.15 810,659,824.91 1,100,220,793.08 1,093,709,779.46
Total assets 1,482,483,593.90 1,205,628,048.71 1,579,346,581.33 1,406,232,392.79
Current liabilities:
Short-term loans 0.00 1,750,000.00
Loan from central bank
Absorbing deposit and
interbank deposit
Capital borrowed
Transaction financial
liabilities
Notes payable
Accounts payable 20,339,896.20 2,044,109.00 31,292,433.86 1,807,725.20
Accounts received in
advance 80,777,270.73 40,569,611.70 115,518,738.97 66,715,671.72
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 1,418,331.21 36,450.86 6,163,381.62 4,470,461.55
Taxes payable 21,853,863.74 24,579,152.66 10,550,796.11 7,117,965.59
Interest payable
Dividend payable 772,927.84 854,903.47 153,403.29
Other accounts payable 107,146,112.42 42,871,727.67 83,079,536.95 34,036,324.33
Reinsurance payables
Insurance contract reserveShenzhen SEG Co., Ltd. The Third Quarterly Report for 2009 (Full Text)
11
Security trading of agency
Security sales of agency
Non-current liabilities due
within 1 year
Other current liabilities
Total current liabilities 232,308,402.14 110,101,051.89 249,209,790.98 114,301,551.68
Non-current liabilities:
Long-term loans
Bonds payable
Long-term account
payable
Special accounts payable
Projected liabilities 2,728,268.64 2,728,268.64 3,038,218.64 2,728,268.64
Deferred income tax
liabilities 23,186,944.68 270,243.20 293,041.01 270,243.20
Other non-current
liabilities
Total non-current liabilities 25,915,213.32 2,998,511.84 3,331,259.65 2,998,511.84
Total liabilities 258,223,615.46 113,099,563.73 252,541,050.63 117,300,063.52
Owner’s equity (or
shareholders’ 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 378,988,708.35 375,202,623.01 351,257,039.42 347,597,818.69
Less: Inventory shares
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 -135,707,408.41 -170,385,983.70 59,356,134.45 53,622,664.91
Balance difference of
foreign currency translation -548,775.98 -552,897.69
Total owner’s equity
attributable to parent company 1,130,444,369.63 1,092,528,484.98 1,297,772,121.85 1,288,932,329.27
Minority interests 93,815,608.81 29,033,408.85
Total owner’s equity 1,224,259,978.44 1,092,528,484.98 1,326,805,530.70 1,288,932,329.27
Total liabilities and owner’s
equity 1,482,483,593.90 1,205,628,048.71 1,579,346,581.33 1,406,232,392.79
4.2 Profit statement in the report period
Prepared by Shenzhen SEG Co., Ltd. July-Sep. 2009 Unit: RMB
Items ConsolidatioTnh is perPioadr ent Company ConTsohlei dsaatmioen p eriodP oafr elanstt Cyeoamr pany
I. Total operating income 69,649,034.41 24,901,333.58 78,748,384.64 24,112,908.11
Including: Operating income 69,649,034.41 24,901,333.58 78,748,384.64 24,112,908.11
Interest income 0.00 0.00
Insurance gained 0.00 0.00Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2009 (Full Text)
12
Commission charge and
commission income 0.00 0.00
II. Total operating cost 60,930,535.31 18,733,355.32 66,946,868.77 16,458,640.52
Including: Operating cost 45,631,991.25 10,528,239.12 47,133,018.37 10,961,998.45
Interest expense 0.00 0.00
Commission charge and
commission expense 0.00 0.00
Cash surrender value 0.00 0.00
Net amount of expense of
compensation 0.00 0.00
Net amount of withdrawal of
insurance contract reserve 0.00 0.00
Bonus expense of guarantee
slip 0.00 0.00
Reinsurance expense 0.00 0.00
Operating tax and extras 3,098,039.40 1,515,160.09 3,007,555.90 973,874.75
Sales expenses 517,742.59 0.00 4,068,450.23
Administration expenses 10,424,300.72 4,604,674.13 12,703,080.89 4,193,377.34
Financial expenses -1,018,648.58 -191,827.95 102,329.42 329,389.98
Losses of devaluation of asset 2,277,109.93 2,277,109.93 -67,566.04
Add: Changing income of
fair value(Loss is listed with “-”) 0.00 0.00
Investment income (Loss is
listed with “-”) -19,372,478.15 -42,018,452.74 3,076,574.47 3,846,574.47
Including: Investment income
on affiliated company and joint
venture
-73,707,920.10 -73,707,920.10 3,076,574.47 3,846,574.47
Exchange income (Loss is
listed with “-”) 0.00 0.00
III. Operating profit (Loss is
listed with “-”) -10,653,979.05 -35,850,474.48 14,878,090.34 11,500,842.06
Add: Non-operating income 92,009.24 622,265.73 261,616.15 853.00
Less: Non-operating expense 150,160.71 20,140.95 1,546,562.26 34,915.60
Including: Disposal loss of
non-current asset 0.00 0.00
IV. Total Profit (Loss is listed
with “-”) -10,712,130.52 -35,248,349.70 13,593,144.23 11,466,779.46
Less: Income tax expense 23,276,831.74 23,143,260.75 1,369,790.84
V. Net profit (Net loss is listed
with “-”) -33,988,962.26 -58,391,610.45 12,223,353.39 11,466,779.46
Net profit attributable to
owner’s of parent company -33,284,043.64 -58,391,610.45 11,078,500.73 11,466,779.46
Minority shareholders’ gains
and losses -704,918.62 0.00 1,144,852.66
VI. Earnings per share
i. Basic earnings per share -0.0424 -0.0744 0.0141 0.0146
ii. Diluted earnings per share -0.0424 -0.0744 0.0141 0.0146
VII. Other consolidated income
VIII. Total consolidated income -33,988,962.26 -58,391,610.45 12,223,353.39 11,466,779.46
Total consolidated income -33,284,043.64 -58,391,610.45 11,078,500.73 11,466,779.46Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2009 (Full Text)
13
attributable to owners of parent
company
Total consolidated income
attributable to minority
shareholders
-704,918.62 0.00 1,144,852.66
4.3 Profit statement from year-begin to the end of report period
Prepared by Shenzhen SEG Co., Ltd. Jan.-Sep. 2009 Unit: RMB
Amount i Items Consolidation n thiPsa preenrito Cd ompany ConsolAidmatoiounn t in lasPta preenrito Cd o mpany
I. Total operating income 207,531,519.48 79,179,967.63 225,495,716.30 74,621,136.54
Including: Operating income 207,531,519.48 79,179,967.63 225,495,716.30 74,621,136.54
Interest income 0.00
Insurance gained 0.00
Commission charge and
commission income 0.00
II. Total operating cost 153,332,297.18 41,519,495.41 185,962,872.88 51,081,533.66
Including: Operating cost 124,263,257.75 30,831,442.86 127,206,369.01 32,871,382.41
Interest expense 0.00
Commission charge and
commission expense 0.00
Cash surrender value 0.00
Net amount of expense of
compensation 0.00
Net amount of withdrawal of
insurance contract reserve 0.00
Bonus expense of guarantee
slip 0.00
Reinsurance expense 0.00
Operating tax and extras 9,454,025.01 4,626,820.01 8,556,605.73 2,869,966.52
Sales expenses 1,870,791.51 0.00 9,635,611.98
Administration expenses 26,666,169.58 13,409,051.54 36,565,888.21 13,002,313.55
Financial expenses -7,244,756.60 -5,724,928.93 3,434,828.20 2,337,871.18
Losses of devaluation of asset -1,677,190.07 -1,622,890.07 563,569.75
Add: Changing income of
fair value(Loss is listed with “-”) 0.00 0.00
Investment income (Loss is
listed with “-”) -205,523,356.85 -224,456,041.06 10,883,711.58 24,352,502.07
Including: Investment income
on affiliated company and joint
venture
-287,789,592.30 -287,789,592.30 10,883,711.58 24,352,502.07
Exchange income (Loss is
listed with “-”) 0.00 0.00
III. Operating profit (Loss is
listed with “-”) -151,324,134.55 -186,795,568.84 50,416,555.00 47,892,104.95
Add: Non-operating income 2,131,072.31 1,646,302.13 3,770,741.03 11,782.79
Less: Non-operating expense 259,970.62 20,140.95 1,838,994.73 34,915.60
Including: Disposal loss of
non-current assetShenzhen SEG Co., Ltd. The Third Quarterly Report for 2009 (Full Text)
14
IV. Total Profit (Loss is listed
with “-”) -149,453,032.86 -185,169,407.66 52,348,301.30 47,868,972.14
Less: Income tax expense 27,662,817.32 23,143,260.75 8,050,252.45 3,689,469.10
V. Net profit (Net loss is listed
with “-”) -177,115,850.18 -208,312,668.41 44,298,048.85 44,179,503.04
Net profit attributable to
owner’s of parent company -179,367,562.66 -208,312,668.41 39,779,889.37 44,179,503.04
Minority shareholders’ gains
and losses 2,251,712.48 0.00 4,518,159.48
VI. Earnings per share
i. Basic earnings per share -0.2286 -0.2654 0.0507 0.0563
ii. Diluted earnings per share -0.2286 -0.2654 0.0507 0.0563
VII. Other consolidated income
VIII. Total consolidated income -177,115,850.18 -208,312,668.41 44,298,048.85 44,179,503.04
Total consolidated income
attributable to owners of parent
company
-179,367,562.66 -208,312,668.41 39,779,889.37 44,179,503.04
Total consolidated income
attributable to minority
shareholders
2,251,712.48 0.00 4,518,159.48
4.4 Cash flow statement from year-begin to the end of report period
Prepared by Shenzhen SEG Co., Ltd. Jan.-Sep. 2009 Unit: RMB
Amount i Items Consolidation n thiPsa preenrito Cd ompany ConsolAidmatoiounn t in lasPta preenrito Cd o mpany
I. Cash flows arising from
operating activities:
Cash received from selling
commodities and providing labor
services
260,617,110.94 65,802,614.72 266,585,938.69 67,626,717.33
Net increase of customer
deposit and interbank deposit 0.00 0.00
Net increase of loan from
central bank 0.00 0.00 0.00
Net increase of capital
borrowed from other financial
institution
0.00 0.00 0.00
Cash received from original
insurance contract fee 0.00 0.00 0.00
Net cash received from
reinsurance business 0.00 0.00 0.00
Net increase of insured
savings and investment 0.00 0.00 0.00
Net increase of disposal of
transaction financial asset 0.00 0.00 0.00
Cash received from interest,
commission charge and
commission
0.00 0.00 0.00
Net increase of capital
borrowed 0.00 0.00 0.00
Net increase of returned
business capital 0.00 0.00 0.00 0.00Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2009 (Full Text)
15
Write-back of tax received 0.00 0.00 3,536.12 0.00
Other cash received
concerning operating activities 119,356,205.53 88,657,283.34 102,972,103.24 85,573,057.61
Subtotal of cash inflow
arising from operating activities 379,973,316.47 154,459,898.06 369,561,578.05 153,199,774.94
Cash paid for purchasing
commodities and receiving labor
service
108,660,440.53 6,938,390.43 109,565,776.15 20,477,419.41
Net increase of customer
loans and advances 0.00 0.00 0.00 0.00
Net increase of deposits in
central bank and interbank 0.00 0.00 0.00 0.00
Cash paid for original
insurance contract compensation 0.00 0.00 0.00 0.00
Cash paid for interest,
commission charge and
commission
0.00 0.00 0.00 0.00
Cash paid for bonus of
guarantee slip 0.00 0.00 0.00 0.00
Cash paid to/for staff and
workers 29,902,646.33 15,605,792.88 29,451,902.58 10,783,525.78
Taxes paid 62,501,960.96 43,323,819.59 91,647,642.64 73,012,916.71
Other cash paid concerning
operating activities 125,175,644.96 105,965,276.86 104,377,115.85 49,917,721.45
Subtotal of cash outflow
arising from operating activities 326,240,692.78 171,833,279.76 335,042,437.22 154,191,583.35
Net cash flows arising from
operating activities 53,732,623.69 -17,373,381.70 34,519,140.83 -991,808.41
II. Cash flows arising from
investing activities:
Cash received from
recovering investment 88,192,419.25 87,622,419.25 184,510,000.00 184,510,000.00
Cash received from
investment income 11,440,899.88 23,681,889.13 7,912,256.34 20,709,404.69
Net cash received from
disposal of fixed, intangible and
other long-term assets
435,620.00 0.00 3,234,571.99 0.00
Net cash received from
disposal of subsidiaries and other
units
24,511,448.87 38,280,000.00 34,814.40 0.00
Other cash received
concerning investing activities 0.00 0.00 0.00 0.00
Subtotal of cash inflow from
investing activities 124,580,388.00 149,584,308.38 195,691,642.73 205,219,404.69
Cash paid for purchasing
fixed, intangible and other
long-term assets
13,779,480.64 550,510.00 3,850,165.51 705,022.00
Cash paid for investment 0.00 69,000,000.00 0.00 0.00
Net increase of mortgaged
loans 0.00 0.00 0.00 0.00
Net cash received from
subsidiaries and other units 67,801,287.47 0.00 0.00 0.00
Other cash paid concerning
investing activities 2,228,261.00 0.00 6,108,315.04 6,108,315.04
Subtotal of cash outflow 83,809,029.11 69,550,510.00 9,958,480.55 6,813,337.04Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2009 (Full Text)
16
from investing activities
Net cash flows arising from
investing activities 40,771,358.89 80,033,798.38 185,733,162.18 198,406,067.65
III. Cash flows arising from
financing activities
Cash received from
absorbing investment 0.00 0.00 0.00 0.00
Including: Cash received
from absorbing minority
shareholders’ investment by
subsidiaries
0.00 0.00 0.00 0.00
Cash received from loans 0.00 0.00 60,000,000.00 60,000,000.00
Cash received from issuing
bonds 0.00 0.00 0.00 0.00
Other cash received
concerning financing activities 0.00 0.00 1,233,466.28 1,191,357.20
Subtotal of cash inflow from
financing activities 0.00 0.00 61,233,466.28 61,191,357.20
Cash paid for settling debts 60,293.72 0.00 95,000,000.00 85,000,000.00
Cash paid for dividend and
profit distributing or interest
paying
23,123,489.44 15,242,627.67 21,134,312.59 17,505,274.49
Including: Dividend and
profit of minority shareholder
paid by subsidiaries
0.00 0.00 0.00 0.00
Other cash paid concerning
financing activities 0.00 0.00 0.00 0.00
Subtotal of cash outflow
from financing activities 23,183,783.16 15,242,627.67 116,134,312.59 102,505,274.49
Net cash flows arising from
financing activities -23,183,783.16 -15,242,627.67 -54,900,846.31 -41,313,917.29
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
2,065.97 0.00 -45,516.56 0.00
V. Net increase of cash and cash
equivalents 71,322,265.39 47,417,789.01 165,305,940.14 156,100,341.95
Add: Balance of cash and
cash equivalents at the period
-begin
400,172,059.09 298,174,735.64 261,303,787.50 159,993,220.40
VI. Balance of cash and cash
equivalents at the period -end 471,494,324.48 345,592,524.65 426,609,727.64 316,093,562.35
4.5 Auditor’ report
Auditor’s opinions: Un-audited
