SHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
1
Stock Code: 000058 Shortened Form of the Stock: Shenzhen SEG No.:2010-023
SHENZHEN SEG CO., LTD.
SUMMARY OF SEMI-ANNUAL REPORT 2010
§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 hereby confirm
that there are not 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.
No director, supervisor or senior executive is unable to guarantee or holds objection tothe truth,
accuracy, and completeness of the Semi-annual Financial Report.
Chairman of the Company Mr. Wang Chu, Deputy General Manager and Person in Charge of
Financial Affairs Mr. Li Lifu and Director of Financial Department Mr. Ying Huadong hereby
confirm that the financial report enclosed in this semi-annual report is true and complete.
The semi-annual financial report of the Company has not been audited.
This report was prepared in both Chinese and English languages. Should there be any
difference in interpretation between the two versions, the Chinese version shall prevail.
1.2 The Semi-annual Financial Report 2010 of the Company has not been audited by the CPAs.
1.3 Chairman of the Company Mr. Wang Chu, Person in Charge of Accounting Affairs Mr. Li Lifu
and Person in charge of Accounting Institution (Accounting Executives) Mr. Ying Huadong
hereby confirm that the financial report enclosed in this semi-annual report is true and
complete.
§2. Company Profile
2.1 Basic information of the listed company
Short form of stock SHEN SEG, SHEN SEG-B
Stock code 000058, 200058
Listed stock exchange Shenzhen Stock Exchange
Secretary of the Board Securities Affairs Representative
Name Zheng Dan Fan Chonglan
Contact address 31/F, Tower A, Stars Plaza, Huaqiang
Road (N), Futian District, Shenzhen
31/F, Tower A, Stars Plaza, Huaqiang
Road (N), Futian District, Shenzhen
Telephone 0755-83747939 0755-83747939SHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
2
Fax 0755-83975237 0755-83975237
E-mail segcl@segcl.com.cn segcl@segcl.com.cn
2.2 Major Financial Data and Indexes
2.2.1 Major accounting data and financial indexes
Unit: RMB
At the end of this
report period
At the period-end
of last year
Increase/decrease at the end of this
report period compared with that in
period-end of last year (%)
Total assets 1,393,700,513.68 1,359,490,387.43 2.52%
Owners’ equity attributable to
shareholders of the listed
company
1,053,275,088.10 1,015,659,488.47 3.70%
Share capital 784,799,010.00 784,799,010.00 0.00%
Net assets per share attributable
to shareholders o f the listed
company（RMB/share）
1.3421 1.2942 3.70%
This report period
(Jan. to Jun.)
The same period of
last year
Increase/decrease in this report
period year-on-year (%)
Total operation income 178,297,428.20 137,882,485.07 29.31%
Operation profit 39,086,023.77 -140,670,155.49 -
Total of profit 39,206,273.43 -138,740,902.33 -
Net profit attributable to
shareholders of the listed
company
26,896,844.71 -146,083,519.02 -
Net profit attributable to
shareholders of the listed
company after deducting of
non-recurring gains and losses
24,568,074.69 -197,745,812.20 -
Basic earnings per share
(RMB/Share) 0.0343 -0.1861 -
Diluted earnings per share
(RMB/Share) 0.0343 -0.1861 -
Return on equity (%) 2.60% -12.00% 14.60%
Net cash flow arising from
operating activities 28,248,913.00 22,313,372.91 26.60%
Net cash flow arising from
operating activities per share
(RMB/Share)
0.0360 0.0284 26.76%
2.2.2 Items of non-recurring gains and losses
√Applicable □Inapplicable
Unit: RMB
Items of non-recurring gains and losses Amount Note (if applicable)
Gains and losses from the disposal of non-current asset 169,769.72
Sound value change gain/loss from holding tradable
financial assets and financial liabilities held and investment
return from disposal of tradable financial assets, liabilities,
2,947,815.81SHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
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and financial assets available for sale (valid hedging
business related to the Company’s normal operation business
excluded)
Other non-operating income and expense excluding the
aforementioned business -49,520.06
Influences on minority shareholders’ gains/losses -63,195.71
Impact on income tax -676,099.74
Total 2,328,770.02 -
2.2.3 Differences between CAS and IAS:
√Applicable □Inapplicable
Net profit attributable to the shareholders of
the listed company
Owners’ equity attributable to the
shareholders of the listed company
Amount in the
report period
Amount in
last period
Amount at
period-end
Amount at
period-beginning
IAS 26,896,844.71 -146,083,519.02 1,053,275,088.10 1,015,659,488.47
CAS 26,896,844.71 -146,083,519.02 1,053,275,088.10 1,015,659,488.47
Sub-items adjusted based on IAS and total:
Total amount of
differences between
CAS and IAS
0.00 0.00 0.00 0.00
Explanations on
differences between
CAS and IAS
Nil
§3. Changes in Share Capital and Particulars about Shareholders
3.1 Statement of change in shares
√Applicable □Inapplicable
Unit: Share
Before the change Increase/Decrease of this time (+, -) After the change
Amount Proportio
n
Issuanc
e of
new
shares
Bonus
shares
Convers
ion of
capital
public
reserve
Others Sub-total Amount Proportio
n
I. Restricted shares 47,286 0.01% 0 0 0 -11,822 -11,822 35,464 0.00%
1. State-owned
shares 0 0.00% 0 0 0 0 0 0 0.00%
2. State-owned
legal person’s
shares
0 0.00% 0 0 0 0 0 0 0.00%
3. Other domestic
shares 0 0.00% 0 0 0 0 0 0 0.00%
Thereinto:
Domestic
non-state-owned
legal person’s
shares
0 0.00% 0 0 0 0 0 0 0.00%
Domestic natural
person’s shares 0 0.00% 0 0 0 0 0 0 0.00%
4. Foreign shares 0 0.00% 0 0 0 0 0 0.00%
Thereinto: Foreign 0 0.00% 0 0 0 0 0 0 0.00%SHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
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legal person’s
shares
Foreign natural
person’s shares 0 0.00% 0 0 0 0 0 0 0.00%
5. Senior
executives’ shares 47,286 0.01% 0 0 0 -11,822 -11,822 35,464 0.00%
II. Unrestricted
shares 784,751,724 99.99% 0 0 0 11,822 11,822 784,763,546 100.00%
1. RMB ordinary
shares 538,290,406 68.59% 0 0 0 11,822 11,822 538,302,228 68.59%
2.Domestically
listed foreign
shares
246,461,318 31.40% 0 0 0 0 0 246,461,318 31.40%
3. Overseas listed
foreign shares 0 0.00% 0 0 0 0 0 0 0.00%
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total shares 784,799,010 100.00% 0 0 0 0 0 784,799,010 100.00%
3.2 Particulars about shares held by the top ten shareholders and the top ten shareholders
with unrestricted conditions
Unit: Share
Total shareholders 58312
Particulars about shares held by the top ten shareholders
Names of shareholders Nature of
shareholder
Proportion of
share-holding
Amount of
share held
Amount of restricted
shares held
Shares pledged or
frozen
SHENZHEN SEG
GROUP CO., LTD.
State-owned
legal person 30.24% 237,359,666 83,679,833
GUANGZHOU FODAK
ENTERPRISE GROUP
CO., LTD.
Domestic
non-state-o
wned legal
person
2.41% 18,880,334
Yang Zhihui
Domestic
natural
person
1.59% 12,477,600
Taifook Securities
Company
Limited-Account
Client
Foreign
legal person 1.58% 12,409,410
China Merchants
Securities (Hong
Kong) Co., Ltd.
State-owned
legal person 0.91% 7,115,156
Gong Qianhua
Foreign
natural
person
0.64% 5,050,000
Shanghai Hong Kong
Wanguo Securities
Foreign
legal person 0.62% 4,835,828
Zhu Wei
Domestic
natural
person
0.52% 4,066,739
Tang Lizhu
Domestic
natural
person
0.48% 3,796,200SHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
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Zuo Benjun
Domestic
natural
person
0.47% 3,658,301
Particulars about the shares held by the top ten unrestricted shareholders
Full Name of shareholder Amount of 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
Yang Zhihui 12,477,600 RMB common share
Taifook Securities Company
Limited-Account Client 12,409,410 Domestically listed foreign share
China Merchants Securities (Hong
Kong) Co., Ltd. 7,115,156 Domestically listed foreign share
Gong Qianhua 5,050,000 Domestically listed foreign share
Shanghai Hong Kong Wanguo
Securities 4,835,828 Domestically listed foreign share
Zhu Wei 4,066,739 RMB common share
Tang Lizhu 3,796,200 RMB common share
Zuo Benjun 3,658,301 RMB common share
Explanation on affiliated relation and
consistent action of the
aforementioned shareholders
Among the top ten shareholders as listed above, there existed
no associated relationship between Shenzhen SEG Group Co.,
Ltd. (hereinafter referred to as SEG Group) and other
shareholders, and they were not consistent actionists according
to Management Regulation of Information Disclosure on
Change of Shareholding for Listed Companies. It was unclear
whether there was affiliated relation among the other top ten
shareholders of unrestricted shares or they were consistent
actionists.
3.3 Particulars about changes in controlling shareholder and actual controller of the
Company
□Applicable √□Inapplicable
§4. Particulars about Directors, Supervisors, and Senior Executives
4.1Particulars about changes in shares held by directors, supervisors and senior executives
□Applicable √Inapplicable
§5. Report of Board of Directors
5.1 Statement of main operations classified according to industries and products
Unit: RMB’0000
Main operations classified according to industries
Classified according
to industries or
products
Operation
income Operation cost Gross profit
ratio (%)
Increase/decre
ase in
operation
Increase/decre
ase in
operation cost
Increase/decrea
se in gross
profit ratio onSHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
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income on
year-on-year
basis (%)
on
year-on-year
basis (%)
year-on-year
basis (%)
Operation business
of electronics
market, and
property lease
11,627.85 6,344.42 45.44% 10.78% 19.20% -3.86%
Bonded storage
and overseas
transportation
business
3,557.59 2,865.47 19.45% 9.47% 12.96% -2.48%
Sales of
self-support or
joint venture
electronic products
2,211.74 2,036.78 7.91%
Main operations classified according to products
Operation business
of electronics
market, and
property lease
11,627.85 6,344.42 45.44% 10.78% 19.20% -3.86%
Bonded storage
and overseas
transportation
3,557.59 2,865.47 19.45% 9.47% 12.96% -2.48%
Sales of
self-support or
joint venture
electronic products
2,211.74 2,036.78 7.91%
5.2 Particulars about main operations classified according to areas
Unit: RMB’0000
Areas Operation income
Increase/decrease in
operation income compared
with last year (%)
Shenzhen 12,485.60 25.90%
Xi’an 1,233.16 3.18%
Suzhou 1,450.05 53.72%
Changsha 1,101.49
Overseas 1,559.45 1.71%
5.3 Explanation on reasons of material changes in main operations and its structure
√Applicable □Inapplicable
1. Upon the completion of the transfer of stock in SEG Communication in May 2009, the Company
quitted the network communication business, therefore the business in communication products
manufacturing and network in this report period decreased year-on-year.
2．Due to the transfer of stock in Chongqing SEG in May 2009, the operation income in Chongqing
area decreased year-on-year.SHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
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3．Income in the Company’s self-support business of (“Buy-it”) Shops and affiliated business
increased year-on-year.
5.4 Explanation on reasons of material changes in profitability (gross profit ratio) of main
operations compared with that of last year
√Applicable □Inapplicable
Due to the business starting of Changsha SEG and Changsha Mellow Orange Hotel in January 2010,
and the year-on-year increase in operation income of “Buy-it” Shops, the Company’s operation
income increased. In this period, due to the Company’s new business still in fostering and starting
phase, and the gross profit was rather low, the Company’s gross profit ratio of general business
decreased year-on-year.
5.5 Analysis on reasons of material changes in profit structure compared with the previous
year
√Applicable □Inapplicable
Loss of RMB 32,033,300 in this period SEG SAMSUNG with the Company’s 22.45% stock in it,
compared with RMB 969.7126 million of the same period of last year, made the Company’s
investment loss decrease largely and large increase in the Company’s operation profit and total profit.
5.6 Application of the raised funds
5.6.1 Use of the raised funds
□Applicable √Inapplicable
5.6.2 Particulars about the projects changed
□Applicable √Inapplicable
5.7 The modification plan of Board to the business plan for the second half of the year
□Applicable √Inapplicable
5.8 Estimation on 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 on reason
√Applicable □Inapplicable
Forecast of performances 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)
3,200.00 -- 3,600.00 -17,936.76 Increase --
Basic earnings per
share(RMB/Share) 0.0408 -- 0.0459 -0.2286 Increase --
Explanations on forecast
of performances
(1)Shenzhen SEG SAMSUNG as the Company’s joint company is expected of the accumulative loss
of RMB 43 million to RMB 48 million from the Year-beginning to next report period-ends.
(2)The performance prediction has not been audited by the CPAs.
5.9 Explanation on “Qualified Opinion” from the Certified Public Accountants in the report
period by the Board of Directors
□Applicable √InapplicableSHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
8
5.10 Explanation on changes and disposal of the issues involved in “Qualified Opinion” from
the Certified Public Accountants in the last year by the Board of Directors
□Applicable √Inapplicable
§6. Significant Events
6.1 Purchases and sales of assets and assets re-combination
6.1.1 Assets purchased or acquired
□Applicable √Inapplicable
6.1.2 Assets sold
□Applicable √Inapplicable
6.1.3 Progress of the events and their influence on the Company’s operating results and
financial status in the report period after the Report on Assets Re-combination or Public
Notice on Acquisition and Sales of Assets being published
□Applicable √Inapplicable
6.2 Guarantees
□Applicable √Inapplicable
6.3 Current non-operating related credits and liabilities
□Applicable √Inapplicable
6.4 Significant lawsuits and arbitrations
□Applicable √Inapplicable
6.5 Other significant events and analysis on their influences and solutions
□Applicable √Inapplicable
6.5.1 Particulars about securities investment
□Applicable √Inapplicable
6.5.2 Equity of other listed companies held
√Applicable □Inapplicable
Unit: RMB
Stock
code
Short
form of
the stock
Initial
investment
amount
Proportion
in equity of
the
Company
Book value at
period-end
Gains and
losses in
report period
Changes
on owners’
equity in
the report
period
Account
calculation title
Source of
shares
600778 Friendshi
p Group
90,405.00 0.04% 623,821.24 0.00 65,792.51 Financial assets
available for sale
Original
legal person
share
000007 ST
Zero-Seven 0.00 0.00% 0.00 2,299,296.33 359,487.00 Financial assets
available for sale
Original
legal person
share
000068
ST
SAMSUN
G
279,307,046.38 22.45% 103,852,676.89 -7,192,975.88 5,379,024.12 Long-term equity
investment
Original
legal person
share
Total 279,397,451.38 - 104,476,498.13 -4,893,679.55 5,804,303.63 - -SHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
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6.5.3 Occupation of non-operational funds by largest shareholder and its affiliated enterprises
and its progress of paying off
□Applicable √Inapplicable
6.5.4 Implementation of commitments made by the Company, shareholders and actual
controller
√Applicable □Inapplicable
Commitments Promisee Content of commitments Implementation
Commitments
made in
issuing
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 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
implemented according
to the commitment.
Other
Commitments
SHENZHEN SEG
GROUP CO.,
LTD.
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 electronics 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 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.
In the report period,
SEG Group
implemented the
aforementioned
commitment.SHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
10
6.5.5 Profit distribution of Board of Directors this time or preplan of capital public reserve
capitalizing
□Applicable √Inapplicable
6.5.6 Details of other consolidated incomes
Unit: RMB
items Amount occurred in the
report period
Amount occurred in same
period of last year
1.Gain/loss from financial assets available
for sale 84,349.37 1,264,881.22
Less: Income tax influence from financial
assets available for sale 18,556.86 252,976.24
Net amount reckoned into other
consolidated income previously but
transferred into gain/loss in current period
1,939,809.33 795,716.11
Subtotal -1,874,016.82 216,188.87
2.Share in the other consolidated return of
the invested unit as audited according equity
method
Less: Income tax influence of share in the
other consolidated income of the invested
unit as audited according equity method
Net amount reckoned into other
consolidated income previously but
transferred into gain/loss in current period
Subtotal 0.00 0.00
3.Gain/loss from cash flow hedge
instrument
Less: Income tax influence from cash flow
hedge
Net amount reckoned into other
consolidated income previously but
transferred into gain/loss in current period
Adjustment transferred to initially
confirmed amount of arbitraged item
Subtotal 0.00 0.00
4.Difference from translation of financial
statement of foreign currency 42,759.60 2,184.43
Less: Net of disposal of foreign business
transferred to gain/loss in current period
Subtotal 42,759.60 2,184.43
5.Other 12,572,000.00 387,675.80
Less: Income tax influence by others
reckoned into other consolidated income
Net amount reckoned into otherSHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
11
consolidated income previously but
transferred into gain/loss in current period
Subtotal 12,572,000.00 387,675.80
Total 10,740,742.78 606,049.10
6.6 Registration form for receiving research, communication and interview in the report
period.
Reception date Reception place Reception way Object received
Discussion issue and offered
information
January 6,
2010
Office of the
Company
Communication on
phone Investor Basic information of the Company
February 12,
2010
Office of the
Company
Communication on
phone B Shareholder Basic information of the Company
March 26,
2010
Office of the
Company
Communication on
phone B Shareholder Basic information of the Company
April 7, 2010 Office of the
Company Written interval Journalist in
Securities Times
Relevant information of the
Company disclosed
April 16, 2010 Office of the
Company
Communication on
phone B Shareholder
Basic information of the Company
and the disclosure date of the
annual report
May 20, 2010 Office of the
Company
Communication on
phone B Shareholder
Relevant proposals for the annual
shareholders’ general meeting
June 24, 2010 Office of the
Company
Communication on
phone Investor
Relevant information of the
Company disclosed
§7. Financial Report
7.1 Auditing opinion
Financial Report √Un-audited □Audited
7.2 Financial statement
7.2.1 Balance Sheet
Prepared by Shenzhen SEG Co., Ltd. June 30, 2010 Unit: RMB
Amount at period-end Amount at year-beginning
Item Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 506,807,397.50 399,739,271.43 485,135,270.94 375,350,393.53
Settlement provisions
Capital lent
Transaction financial asset
Notes receivable
Accounts receivable 22,190,524.97 400,000.00 18,130,631.40 1,134,357.47
Accounts paid in advance 23,834,855.75 650,074.96 18,404,268.08 8,035,295.00SHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
12
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Interest receivable 2,460,821.92 2,460,821.92
Dividend receivable
Other receivables 13,883,170.20 45,366,886.08 11,971,998.74 45,306,466.00
Purchase restituted
financial asset
Inventories 3,319,264.37 5,886,392.39
Non-current asset due
within one year
Other current assets
Total current assets 570,035,212.79 446,156,232.47 541,989,383.47 432,287,333.92
Non-current assets:
Granted loans and advances
Finance asset available for
sales 623,821.24 3,843,571.87 3,304,100.00
Held-to-maturity
investment
Long-term account
receivable
Long-term equity
investment 126,492,061.30 307,589,560.34 119,732,099.86 300,829,598.90
Investment property 434,987,010.74 342,498,907.17 442,502,999.44 347,797,315.91
Fixed assets 218,699,199.21 22,787,702.12 189,516,718.30 23,314,450.93
Engineering under
construction
3,850,549.95 26,192,075.55
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 4,598,594.45 569,297.40 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
apportioned 16,498,737.19 1,548,673.73 13,041,779.82 1,165,451.06
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 823,665,300.89 680,988,156.69 817,501,003.96 683,056,798.11
Total assets 1,393,700,513.68 1,127,144,389.16 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
liabilitiesSHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
13
Notes payable
Accounts payable 14,881,485.86 2,217,085.12 8,225,509.02 2,178,169.12
Accounts received in
advance 111,403,728.75 59,909,745.03 105,563,890.39 65,801,272.52
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 1,404,104.26 63,774.06 4,261,476.99 2,065,724.98
Taxes payable 6,238,344.56 8,222,931.26 24,421,758.66 24,773,634.49
Interest payable
Dividend payable 1,716,515.57 153,403.29 921,420.73 153,403.29
Other accounts payable 94,185,967.86 39,489,099.59 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 229,830,146.86 110,056,038.35 229,848,345.70 136,904,700.02
Non-current liabilities:
Long-term loans
Bonds payable
Long-term account payable
Special accounts payable
Anticipated liabilities
Deferred income tax liabilities 22,077,002.50 23,160,034.29 547,125.71
Other non-current liabilities
Total non-current liabilities 22,077,002.50 0.00 23,160,034.29 547,125.71
Total liabilities 251,907,149.36 110,056,038.35 253,008,379.99 137,451,825.73
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 407,598,478.27 404,980,399.08 396,922,482.95 394,348,208.41
Less: Treasury 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 -241,535,078.81 -275,603,893.94 -268,431,923.52 -304,167,747.78
Balance difference of
foreign currency translation -500,157.03 -542,916.63
Total owner’s equity attributable
to parent company 1,053,275,088.10 1,017,088,350.81 1,015,659,488.47 977,892,306.30
Minority interests 88,518,276.22 90,822,518.97
Total owner’s equity 1,141,793,364.32 1,017,088,350.81 1,106,482,007.44 977,892,306.30
Total liabilities and owner’s
equity 1,393,700,513.68 1,127,144,389.16 1,359,490,387.43 1,115,344,132.03SHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
14
7.2.2 Profit Statement
Prepared by Shenzhen SEG Co., Ltd. January-June 2010 Unit: RMB
Amount in this period Amount in last period
Items Consolidation
Parent
Company Consolidation
Parent
Company
I. Total operating income 178,297,428.20 56,215,822.38 137,882,485.07 54,278,634.05
Thereinto: Operating income 178,297,428.20 56,215,822.38 137,882,485.07 54,278,634.05
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 136,347,181.68 26,934,447.67 92,401,761.86 22,786,140.09
Thereinto: Operating cost 115,533,447.61 19,408,492.15 78,631,266.50 20,303,203.74
Interest expense
Commission charge and
commission payouts
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 7,265,802.65 3,091,611.88 6,355,985.61 3,111,659.92
Sales expenses 2,515,389.39 1,353,048.92
Administration expenses 13,537,218.21 7,434,954.20 16,241,868.85 8,804,377.41
Financial expenses -2,504,676.18 -3,000,610.56 -6,226,108.02 -5,533,100.98
Losses of devaluation of
asset -3,954,300.00 -3,900,000.00
Add: Changing income of
sound value(Loss is listed with
“-”)
Investment income (Loss is
listed with “-”) -2,864,222.75 6,518,419.69 -186,150,878.70 -182,437,588.32
Thereinto: Investment
income on affiliated company and
joint venture
-214,081,672.20 -214,081,672.20
Exchange income (Loss is
listed with “-”)
III. Operating profit (Loss is
listed with “-”) 39,086,023.77 35,799,794.40 -140,670,155.49 -150,945,094.36
Add: Non-operating income 592,004.10 182,798.62 2,039,063.07 1,636,036.40
Less: Non-operating expense 471,754.44 328,294.09 109,809.91 612,000.00
Thereinto: Disposal loss of
non-current asset
IV. Total Profit (Loss is listed
with “-”) 39,206,273.43 35,654,298.93 -138,740,902.33 -149,921,057.96
Less: Income tax expense 9,914,971.86 7,090,445.09 4,385,985.58
V. Net profit (Net loss is listed
with “-”) 29,291,301.57 28,563,853.84 -143,126,887.91 -149,921,057.96
Net profit attributable to
owners of parent company 26,896,844.71 28,563,853.84 -146,083,519.02 -149,921,057.96SHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
15
Minority shareholders’ gains
and losses 2,394,456.86 2,956,631.11
VI. Earnings per share
i. Basic earnings per share 0.0343 0.0364 -0.1861 -0.1910
ii. Diluted earnings per share 0.0343 0.0364 -0.1861 -0.1910
VII. Other consolidated returns 10,740,742.78 10,632,190.67 606,049.10 536,128.61
VIII. Total of consolidated returns 40,032,044.35 39,196,044.51 -142,520,838.81 -149,384,929.35
Total of consolidated returns
attributable to owners of parent
company
37,615,599.63 39,196,044.51 -145,545,205.98 -149,384,929.35
Total of consolidated returns
attributable to minority
shareholders
2,416,444.72 3,024,367.17
7.2.3 Cash Flow Statement
Prepared by Shenzhen SEG Co., Ltd. January-June 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
175,732,532.01 51,629,618.39 148,836,562.69 40,672,087.76
Net increase of customer
deposit and inter-bank deposit
Net increase of loan from
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 147,664,961.63 76,127,934.08 84,028,548.49 58,845,676.61
Subtotal of cash inflow
arising from operating activities 323,397,493.64 127,757,552.47 232,865,111.18 99,517,764.37
Cash paid for purchasing
commodities and receiving labor
service
72,688,153.10 10,604,204.24 69,625,154.99 3,868,260.60
Net increase of customer loansSHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
16
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 22,357,018.62 10,180,306.48 21,383,962.20 11,975,128.65
Taxes paid 71,085,749.55 59,254,011.26 47,206,886.40 32,107,827.45
Other cash paid relating to
operating activities 129,017,659.37 36,677,487.72 72,335,734.68 37,078,268.86
Subtotal of cash outflow
arising from operating activities 295,148,580.64 116,716,009.70 210,551,738.27 85,029,485.56
Net cash flows arising from
operating activities 28,248,913.00 11,041,542.77 22,313,372.91 14,488,278.81
II. Cash flows arising from
investing activities:
Cash received from recovering
investment 38,645,705.01 38,075,705.01
Cash received from
investment income 9,382,537.10 5,606,656.24 16,657,645.49
Net cash received from
disposal of fixed, intangible and
other long-term assets
4,362,974.77 4,215,980.77 209,500.00
Net cash received from
disposal of subsidiaries and other
units
24,511,448.87 38,280,000.00
Other cash received relating to
investing activities
Subtotal of cash inflow from
investing activities 4,362,974.77 13,598,517.87 68,973,310.12 93,013,350.50
Cash paid for purchasing
fixed, intangible and other
long-term assets
7,475,604.60 191,784.25 1,746,785.46 439,410.00
Cash paid for investment 69,000,000.00
Net increase of mortgaged
loans
Net cash received from
subsidiaries and other units 67,801,287.47
Other cash paid relating to
investing activities 2,228,261.00
Subtotal of cash outflow from
investing activities 7,475,604.60 191,784.25 71,776,333.93 69,439,410.00
Net cash flows arising from
investing activities -3,112,629.83 13,406,733.62 -2,803,023.81 23,573,940.50
III. Cash flows arising from
financing activities
Cash received from absorbing
investment
Including: Cash received from
absorbing minority shareholders’
investment by subsidiariesSHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
17
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 60,293.72
Cash paid for dividend and
profit distributing or interest paying 3,406,502.37 18,487,494.04 15,242,627.67
Including: Dividend and profit
of minority shareholder paid by
subsidiaries
Other cash paid relating to
financing activities
Subtotal of cash outflow from
financing activities 3,406,502.37 18,547,787.76 15,242,627.67
Net cash flows arising from
financing activities -3,406,502.37 -18,547,787.76 -15,242,627.67
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
-57,654.24 -59,398.49 1,305.92
V. Net increase of cash and cash
equivalents 21,672,126.56 24,388,877.90 963,867.26 22,819,591.64
Add: Balance of cash and cash
equivalents at this period
-beginning
485,135,270.94 375,350,393.53 400,172,059.09 298,174,735.64
VI. Balance of cash and cash
equivalents at this period -end 506,807,397.50 399,739,271.43 401,135,926.35 320,994,327.28SHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
18
7.2.4 Consolidated Statement on Changes of Owners’ Equity
Prepared by Shenzhen SEG Co., Ltd. Semi-Annual of 2010 Unite: RMB
Amount in this report period Amount in last year
Owners’ equity attributable to the parent company Owners’ equity attributable to the parent company
Items
Paid-up
capital
(Share
capital)
Capital
public
reserve
s
Less:
invento
ry
stock
Reason
able
public
reserve
Surplus
public
reserve
s
Genera
l risk
provisi
on
Retaine
d profit
Others
Minorit
y
shareho
lders’
equity
Total of
owners’
equity
Paid-u
p
capital
(Share
capital
)
Capital
public
reserves
Less:
invento
ry
stock
Reason
able
public
reserve
Surplus
public
reserve
s
Genera
l risk
provisi
on
Retaine
d profit
Others
Minorit
y
shareho
lders’
equity
Total of
owners’
equity
I. Balance at last year-end
784,7
99,01
0.00
396,9
22,48
2.95
102,9
12,83
5.67
-268,4
31,92
3.52
-542,9
16.63
90,82
2,518.
97
1,106,
482,0
07.44
784,7
99,01
0.00
351,25
7,039.4
2
102,9
12,83
5.67
59,35
6,134.
45
-552,8
97.69
29,03
3,408.
85
1,326,
805,5
30.70
Plus: Changes of accounting
policy
Error correction of last period
Others
II. Balance at Year-beginning
784,7
99,01
0.00
396,9
22,48
2.95
102,9
12,83
5.67
-268,4
31,92
3.52
-542,9
16.63
90,82
2,518.
97
1,106,
482,0
07.44
784,7
99,01
0.00
351,25
7,039.4
2
102,9
12,83
5.67
59,35
6,134.
45
-552,8
97.69
29,03
3,408.
85
1,326,
805,5
30.70
III. Increase/ Decrease in this
year (Decrease is listed with
“-“)
0.00
10,67
5,995.
32
0.00 0.00 0.00 0.00
26,89
6,844.
71
42,75
9.60
-2,304
,242.7
5
35,31
1,356.
88
536,12
8.61
-161,7
79,49
9.22
2,184.
43
68,19
4,137.
12
-93,04
7,049.
06
(I) Net profit
26,89
6,844.
71
2,394,
456.8
6
29,29
1,301.
57
-146,0
83,51
9.02
2,956,
631.1
1
-143,1
26,88
7.91
(II)Other consolidated returns 10,67 42,75 21,98 10,74 -291,7 2,184. 67,73 -221,8SHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
19
5,995.
32
9.60 7.86 0,742.
78
23.79 43 6.06 03.30
Subtotal of the above (I) and
(II)
10,67
5,995.
32
26,89
6,844.
71
42,75
9.60
2,416,
444.7
2
40,03
2,044.
35
-291,7
23.79
-146,0
83,51
9.02
2,184.
43
3,024,
367.1
7
-143,3
48,69
1.21
(III) Invested and deducted
capital of owners 827,85
2.40
69,27
6,545.
23
70,10
4,397.
63
1. Invested capital of owners
69,27
6,545.
23
69,27
6,545.
23
2. Stock payment calculated
into owners’ equality
3. Others 827,85
2.40
827,8
52.40
(IV) Profit distribution
-4,720
,687.4
7
-4,720
,687.4
7
-15,69
5,980.
20
-4,106
,775.2
8
-19,80
2,755.
48
1. Withdrawal of surplus
public reserves
2. Withdrawal of general risk
provisions
3. Distribution for owners
(shareholders)
-4,720
,687.4
7
-4,720
,687.4
7
-15,69
5,980.
20
-4,106
,775.2
8
-19,80
2,755.
48
4. Others
(V) Internal settlement and
transfer of owners’ equitySHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
20
1. Transferred capital/share
capital from public reserve
2. Transferred capital/share
capital from surplus public
reserve
3. Surplus public reserve for
loss
4. Others
(VI) Specific public reserve
1. Withdrawal in Period
2. Use in Period
IV. Balance at Period-end
784,7
99,01
0.00
407,5
98,47
8.27
102,9
12,83
5.67
-241,5
35,07
8.81
-500,1
57.03
88,51
8,276.
22
1,141,
793,3
64.32
784,7
99,01
0.00
351,79
3,168.0
3
102,9
12,83
5.67
-102,4
23,36
4.77
-550,7
13.26
97,22
7,545.
97
1,233,
758,4
81.64
7.2.5 Statement on Changes of Owners' Equity of Parent Company
Prepared by Shenzhen SEG Co., Ltd. Semi-Annual of 2010 Unit: RMB
Amount in this report period Amount in last year
Items
Paid-up
capital
(Share
capital)
Capital
public
reserves
Less:
Treasury
Stock
Reasonab
le public
reserve
Surplus
public
reserves
General
risk
provision
Retained
profit
Total
owners’
equity
Paid-up
capital
(Share
capital)
Capital
public
reserves
Less:
Treasury
Stock
Reasonab
le public
reserve
Surplus
public
reserves
General
risk
provision
Retained
profit
Total
owners’
equity
I. Balance at the end of last
year
784,799
,010.00
394,348
,208.41
102,912
,835.67
-304,16
7,747.7
8
977,892
,306.30
784,799
,010.00
347,597
,818.69
102,912
,835.67
53,622,
664.91
1,288,9
32,329.
27
Add: Changes of accounting
policy 0.00
Error correction of the last 0.00SHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
21
period
Others 0.00
II. Balance at the beginning
of this year
784,799
,010.00
394,348
,208.41
102,912
,835.67
-304,16
7,747.7
8
977,892
,306.30
784,799
,010.00
347,597
,818.69
0.00
102,912
,835.67
0.00
53,622,
664.91
1,288,9
32,329.
27
III. Increase/
Decrease in this year
(Decrease is listed
with "-")
10,632,
190.67
28,563,
877.02
39,196,
067.69
401,183
.46
-165,61
7,038.1
6
-165,21
5,854.7
0
(I) Net profit 28,563,
877.02
28,563,
877.02
0.00
-149,92
1,057.9
6
-149,92
1,057.9
6
(II) Other
consolidated income 10,632,
190.67
10,632,
190.67
-426,66
8.94
-426,66
8.94
Subtotal of (I) and (II) 10,632,
190.67
28,563,
877.02
39,196,
067.69
-426,66
8.94
-149,92
1,057.9
6
-150,34
7,726.9
0
(III) Owners' devoted and
decreased capital 827,852
.40
0.00 0.00 0.00 0.00
827,852
.40
1. Owners' devoted capital 0.00
2. Amount calculated into
owners' equity paid in shares 0.00
3. Others
827,852
.40
827,852
.40
(IV) Profit distribution 0.00 0.00 0.00 0.00
-15,695,
980.20
-15,695,
980.20
1. Withdrawal of surplus
public reserves 0.00SHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
22
2. Providing of
common risk
provisions
0.00
3. Dividend to
shareholders
-15,695,
980.20
-15,695,
980.20
4. Others 0.00
(V) Carrying forward
internal owners' equity 0.00 0.00
1. Capital public reserves
conversed to capital (share
capital)
0.00
2. Surplus public reserves
conversed to capital (share
capital)
0.00
3. Remedying loss with
surplus public reserves 0.00 0.00 0.00 0.00 0.00 0.00
4. Others 0.00
(VI) Reasonable
public reserve 0.00
1. Withdrawal in the
report period 0.00
2. Usage in the report
period 0.00
IV. Balance at the end of the
report period
784,799
,010.00
404,980
,399.08
102,912
,835.67
-275,60
3,870.7
6
1,017,0
88,373.
99
784,799
,010.00
347,999
,002.15
102,912
,835.67
-111,99
4,373.2
5
1,123,7
16,474.
57SHENZHEN SEG CO., LTD. SUMMARY OF SEMI-ANNUAL REPORT 2010
23
7.3Notes to financial statements
7.3.1 If there have been any changes to the accounting policy and accounting
estimates, or modification of accounting errors, give the relevant contents,
reasons and the influenced numbers.
□Applicable √Inapplicable
7.3.2 If there have been any material changes to the consolidation scope of the
financial statement, give the reasons and the influenced numbers.
□Applicable √Inapplicable
7.3.3 If Non-standard Unqualified Opinion is supplied, list the related notes to
the matters involved.
□Applicable √Inapplicable
