Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2010(Full-Text)
Shenzhen SEG Co., Ltd.
The Third Quarterly Report for 2010
(Full-Text)
§1. Important Notes
1.1 Board of Directors and the Supervisory Committee of Shenzhen SEG Co., Ltd., 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 director(s).
Name of absent directors
Posts of absent directors
Reasons for absence from the meeting
Name of entrustee
Wang Chu
President
Business Engagement
Zhang Guangliu
Jiang Yigang
Independent Director
Business Engagement
Zhou Hanjun
1.3 The Third Quarterly Financial Report of 2010 has not been audited by CPAs.
1.4 Wang Chu, Person in Charge of the Company; Li Lifu, Person in Charge of Accounting Work; Ying Huadong, Person in Charge of Accounting Organization (Accounting Principal) hereby confirm that the Financial Report of the Third Quarterly Report is true and complete.
§2. Company Profile
2.1 Main accounting data and financial indexes:
Unit: RMB Yuan
2010.9.30
2009.12.31
Increase/decrease scope (%)
Total assets (Yuan)
1,424,810,070.95
1,359,490,387.43
4.80%
Owners’ equities attributable to the shareholders of listed company (Yuan)
1,062,529,316.84
1,015,659,488.47
4.61%
Share capital (Share)
784,799,010.00
784,799,010.00
0.00%
Net assets per share attributable to the shareholders of listed company (Yuan/Share)
1.35
1.29
4.65%
July-Sep. 2010
Increase/decrease over the same period of the last year (%)
Jan.-Sep. 2010
Increase/decrease over the same period of the last year (%)
Total operating income (Yuan)
103,795,650.70
49.03%
282,093,078.90
35.93%
Net profit attributable to the shareholders of listed company (Yuan)
9,066,771.92
35,963,616.63
Net cash flow arising from operating activities (Yuan)
-
-
66,036,920.85
22.90%
Net cash flow arising from operating activities per share (Yuan/Share)
-
-
0.0841
20.21%
Basic earnings per share (Yuan/Share)
0.0115
0.0458
Diluted earnings per share (Yuan/Share)
0.0115
0.0458
Weighted average return on equity (%)
0.86%
3.79%
3.46%
18.23%
Weighted average return on equity after deducting non-recurring
0.83%
5.55%
3.21%
24.11%
1Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2010(Full-Text)
gains/losses (%)
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
272,184.25
Held transactional financial asset, gains/losses of changes of fair values from transactional financial liabilities, and investment gains from disposal of transactionalfinancial asset, transaction financial liabilities and financial asset available for sales, exclude the effective hedging business relevant with normal operations of the Company
2,947,815.81
Other non-operating income and expense excluded the aforementioned business
189,232.54
Impact amount on equity of minority shareholders
-63,195.71
Impact amount on income tax
-736,128.12
Total
2,609,908.77
-
2.2 Total number of shareholders at the end of the report period and shares held by the top ten shareholders with unrestricted sales conditions
Unit: Share
Total numbers of shareholders
at the end of report period (shareholder)
55,715
Particulars about the shares held by the top ten shareholders with unrestricted sales conditions
Full name of shareholder
Unrestricted shares held at period-end
Type of shares
Shenzhen SEG Group Co., Ltd.
237,359,666
RMB common share
Yang Zhihui
25,148,818
RMB common share
Gguangzhou Fodak Enterprise Group Co., Ltd.
18,880,334
RMB common share
Taifook Securities Company Limited-Account Client
16,251,535
Domestically listed foreign share
China Merchants Securities Hong Kong Co., Ltd.
6,240,173
Domestically listed foreign share
Gong Qianhua
5,313,620
Domestically listed foreign share
Shanghai Hong Kong Wanguo Securities
4,835,828
Domestically listed foreign share
Guotai Jun’an Securities (Hong Kong) Limited
4,075,811
Domestically listed foreign share
Zhu Wei
4,066,739
RMB common share
Tang Lizhu
3,796,200
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
Item
30 September 2010
31 December 2009
Balance
Change rate %
Account receivable
30,555,507.95
18,130,631.40
12,424,876.55
68.53%
Account paid in advance
25,662,349.19
18,404,268.08
7,258,081.11
39.44%
Interest receivable
2,460,821.92
-2,460,821.92
-100.00%
Inventory
3,964,678.35
5,886,392.39
-1,921,714.04
-32.65%
Financial assets available for sales
919,347.45
3,843,571.87
-2,924,224.42
-76.08%
Investment real estate
589,742,487.06
442,502,999.44
147,239,487.62
33.27%
Fixed assets
59,900,235.76
189,516,718.30
-129,616,482.54
-68.39%
Construction in progress
1,679,702.07
26,192,075.55
-24,512,373.48
-93.59%
2Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2010(Full-Text)
Intangible assets
679,703.79
4,756,432.31
-4,076,728.52
-85.71%
Account payable
5,550,801.94
8,225,509.02
-2,674,707.08
-32.52%
Wages payable
1,426,221.82
4,261,476.99
-2,835,255.17
-66.53%
Tax payable
12,617,672.44
24,421,758.66
-11,804,086.22
-48.33%
Dividend payable
1,295,963.57
921,420.73
374,542.84
40.65%
1. Main reasons for the increase of account receivable: account receivable of self-operating and joint venture from “Buy-it” store increased.
2. Main reasons for the increase of account paid in advance: account paid in advance of self-operating and joint venture from “Buy-it” store increased.
3. Main reasons for the increase of interest receivable: bank deposit interest receivable of year-beginninghas been received.
4. Main reasons for decrease of inventory: in the report period, the inventory decreased by the operating modetransforming from self-operating to joint venture of the “Buy-it” store.
5. Main reasons for the decrease of financial assets available for sale: in the report period, the Company sold470,000 shares of Shenzhen Zero-Seven Co., Ltd. (hereinafter referred to as “ST Zero-Seven”) that reduced RMB 3.3041 million correspondingly.
6. Main reasons for the increase of investment real estate: in the report period, the Changsha SEG Building under the name of Changsha SEG Development Co., Ltd. (hereinafter referred to as “Changsha SEG”) –controlledsubsidiary of the Company, have been in operation. The Company transfers the item from fixed assets to investment real estate for calculation accordingly to the accounting standard.
7. Main reasons for the decrease of fixed assets: in the report period, the Changsha SEG Building has been in operation. The Company transfers the item from fixed assets to investment real estate for calculation accordingly to the accounting standard.
8. Main reasons for the decrease of construction in progress: in the report period, the decoration project of Changsha SEG Electronics Market has been completed, the item transfers to investment real estate and long-term deferred expenses separately which reduced the items of contraction in progress.
9. Main reasons for the decrease of intangible assets: in the report period, Changsha SEG Building has been in operation after decoration, the Company transfers the land-use right of the item to investment real estate from intangible assets for calculation accordingly to the accounting standard.
10. Main reasons for the increase of long-term deferred expenses: in the report period, after completing the decoration of Changsha SEG Electronics Market, the item has transferred from construction in progress to long-term deferred expenses.
11. Main reasons for the decrease of account payable: in the report period, the engineering payment payable at the year-beginning has been paid after the decoration of Changsha SEG Building.
12. Main reasons for the decrease of wages payable: in the report period, salary and year-end bonus of the end of 2009 have been paid to employees.
13. Main reasons for the decrease of tax payable: the enterprise income tax that accrued in 2009 hasbeen gathered and paid tax bureau for RMB 25.87 million in the report period.
14. Main reasons for the increase of dividend payable: although thesubsidiary announced dividend distribution to shareholders in the report period, unpaid dividend increased the item.
II. Items of profit statement
Item
This period
Same period of last year
Balance
Change rate %
Operating income
282,093,078.90
207,531,519.48
74,561,559.42
35.93%
Operating cost
191,533,671.99
124,263,257.75
67,270,414.24
54.14%
Sales expenses
2,501,896.14
1,870,791.51
631,104.63
33.73%
Financial expense
-2,825,264.12
-7,244,756.60
4,419,492.48
-61.00%
Assets impairment loss
-1,677,190.07
1,677,190.07
Investment income
-2,733,552.46
-205,523,356.85
202,789,804.39
Operating profit
52,132,376.06
-151,324,134.55
203,456,510.61
Non-operating income
953,064.46
2,131,072.31
-1,178,007.85
-55.28%
Non-operating expenditure
480,938.62
259,970.62
220,968.00
85.00%
3Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2010(Full-Text)
Total profit
52,604,501.90
-149,453,032.86
202,057,534.76
Income tax expenses
13,010,936.32
27,662,817.32
-14,651,881.00
-52.97%
Net profit
39,593,565.58
-177,115,850.18
216,709,415.76
1. Main reasons for the increase of operating income: ①the Changsha SEG and Shenzhen Mellow Orange Business Hotel Management Co., Ltd. (hereinafter referred to as “Mellow orange”) started in operation in this period and increased the operating income. ② compared with that of the same period of last year, theincome of “Buy-it” store with self-operating and joint venture increased.
2. Main reasons for the increase of operating cost: ①operating income increased in this period, the operating cost increased correspondingly. ② in this period, new business of the Company was still in the early stage with lower gross profit rate, so the operating cost increased higher than the operating income.
3. Main reasons for the increase of sales expenses: operating income increased in this period, the sales expense increased correspondingly.
4. Main reason for the changes of financial expenses: the interest income decreased in this period, monetary capital this period are saved as fixed deposit partially with due date of October 2010 – December 2010 mostly. No corresponding interest was received in the period, so no interest income was recognized.
5. Main reason for the changes of assets impairment loss: there wasno assets impairment loss in this report period. The bad debt loss of account receivable accrued in the same period of last year of RMB 3.9 million hasbeen received through litigation.
6. Main reasons for the increase of investment income: Shenzhen SEG Sumsung Glass Co., Ltd. (hereinafter referred to as “ST Sumsung”), 22.45% equity stock-jointly by the Company, has a sharp decline in deficitcompared with the same period of last year.
7. Main reasons for the increase of operating profit: ST Sumsung , 22.45% equity held by the Company, has a sharp decline in losses compared with the same period of last year
8. Main reason for the decrease of non-operating income: due to the switched-back in the same period of last year, the Company should not pay the account payable. However, there is no switched-back of this account payable in this period.
9. Main reason for the increase of non-operating expenditure: approved by the Board, RMB 0.3 million were donated to the poverty alleviation project of Zhanjiang ecological culture.
10. Main reason for the increase of total profit: ST Sumsung, 22.45% equity stock-jointly by the Company, has a sharp decline this report period in losses compared with the same period of last year.
11. Main reason for the decrease of income tax expenses: at the same period of last year, the Company reduced the equity of ST Sumsung and Shenzhen SEG GPS Scientific Co., Ltd. (hereinafter referred to as “SEG GPS”) held, sold the equity of Shenzhen SEG Communication Co., Ltd. (hereinafter referred to as “SEG Communication”) and Chongqing SEG Electronics Market Co., Ltd. (hereinafter referred to as “Chongqing SEG”), obtained major income tax payable. However, the income from equity selling decreased in this period, lowered down the taxable income tax.
12. Main reason for the increase of net profit: ST Sumsung , 22.45% equity held by the Company, has a sharp decline this report period in losses compared with the same period of last year.
III. Items of cash flow statement
Item
This period
Same period of last year
Balance
Changed rate %
Other cash received concerning operating activities
255,785,350.51
119,356,205.53
136,429,144.98
114.30%
Various taxes and fees paid
100,180,562.75
62,501,960.96
37,678,601.79
60.28%
Other cash paid concerning operating activities
212,330,566.08
125,175,644.96
87,154,921.12
69.63%
Cash received from disposal of investment
0.00
88,192,419.25
-88,192,419.25
-100.00%
Cash received from returns on investments
4,386,402.77
11,440,899.88
-7,054,497.11
-61.66%
Net cash received from disposal of fixed assets, intangible assets and other long-term assets
4,547,915.77
435,620.00
4,112,295.77
944.01%
Net cash received from disposal
24,511,448.87
-24,511,448.87
-100.00%
4Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2010(Full-Text)
of subsidiaries and other business entities
Net cash paid for acquisition of subsidiaries and other business entities
67,801,287.47
-67,801,287.47
-100.00%
Other cash paid relating to investing activities
2,228,261.00
-2,228,261.00
-100.00%
Cash paid for dividend and profit distributing or interest paying
4,596,996.55
23,123,489.44
-18,526,492.89
-80.12%
1. Main reason for the increased of other cash received concerning operating activities: Changsha SEG and ①Mellow Orange Hotel newly operating in this period together with “Buy-it” store that newly added in last May havemore increase in this item. the collected cashier business of ②electronics marketincreased the account of goods received from clients.
2. Main reason for the increase of various taxes and fees paid: the enterprise income tax paid in this period was higher than the same period of last year.
3. Main reason for the increased of other cash paid concerning operating activities: Changsha SEG and Mellow ①Orange Hotel newly operating in this period together with “Buy-it” store that newly added in last May have more increase in this item. the collected cashier business of ②electronics market increased the account of goods refundedto clients.
4. Main reason for the decreased of cash received from disposal of investment: at the same period of last year, the Company reduced the equity of ST Sumsung, SEG GPS and ST Zero-Seven held, received RMB 88,192,400 in total. While no equity reduced in this period.
5. Main reason for the decreased of cashreceived from returns on investment: in this report period, dividend from jointly invested enterprise received is lower than the same period of last year.
6. Main reason for the increased of net cash received from disposal of fixed assets, intangible assets and other long-term assets: in this report period, the cash received from fixed assets disposal is more than the same period of last year.
7. Net cash received from disposal of subsidiaries and other business entities: equity amount from selling the original subsidiary – SEG Telecommunication and Chongqing SEG received in the same period of last year. However, no subsidiary was sold in this report period.
8. Main reason for the decreased of net cash paid for acquisition of subsidiaries and other business entities: purchased 46% equity of Changsha Xinxing Development Co., Ltd.( renamed as “Changsha SEG Development Co., Ltd.”) in the same period of last year, while no equity purchased in this period.
9. Main reason for the decreased of other cash paid relating to investing activities: RMB 2.23 million of municipal affiliated charge that paid in the same period of last year for the industrial plant of Tower B, Baohua Building—owned by the Shenzhen SEG Baohua Enterprise Development Co., Ltd.(controlled enterprise of theCompany), that temporarily changed the purpose of use to business-used. No such expenses happened in thisperiod.
10. Main reason for the decreased of cash paid for dividend and profit distributing or interest paying: the Company and invested enterprises shares lower dividend than the same period of last year.
3.2 Progress of significant events, their influences, and analysis and explanation of their solutions
3.2.1 Qualified opinion
□Applicable √Inapplicable
3.2.2 Particular about fund offers to controlling shareholders or associated parties and external guarantee that against the regulation.
□Applicable √Inapplicable
3.2.3 Particular about signing and implementing significant contracts of ordinary management.
√Applicable □Inapplicable
1. On 27 September 2010, the 3rd Meeting of 5th Board of Directors approved the Proposal of Renewing RMB 36 Million Loans Offered to Changsha SEG Development Co., Ltd. The Company and Changsha SEG continuallyentered into a loan contract on 30 September 2010, the new loan contract will come into effect from 25 October 5Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2010(Full-Text)
2010.
2. On 29 September 2010, the 3rd extraordinary Meeting of 5th Board of Directors approved the Proposal of Offering Performance Guarantee to Shenzhen SEG Electronics Market Management Co., Ltd. by Shenzhen SEG Industry Development Co., Ltd.— Controlled Subsidiary of the Company. Shenzhen SEG Industry Development Co., Ltd. and Shenzhen SEG Electronics MarketManagement Co., Ltd. entered into an agreement of performance guarantee on 30 September 2010, the agreement is still in performed strictly at present.
3.2.4 Others
□Applicable √Inapplicable
3.3 Implementations of commitments by the Company, shareholders and actual controller
√Applicable □Inapplicable
Commitments
Promiser
Content of commitments
Implementation
Commitments for Share Merger Reform
--
--
--
Commitments made in Acquisition Report or Reports on Change in Interests
--
--
--
Commitments made in material assets reorganization
--
--
--
Commitments made in issuing
ShenzhenSEG Group
Article 5 of the Equity Transfer Agreementwhich the Company had signed with Shenzhen SEG Group(hereinafter referred to as “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 similarto 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 (including additional commitments)
SEG
Group
(1) According to the problem of “Your company’s existing same industry competition in the electronics marketbusiness 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 marketof 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. Controlling shareholders implemented the abovementioned commitment in the report period.
Controlling shareholders implemented theabovementioned commitmentin the report period.
6Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2010(Full-Text)
(2) On Oct. 18thof 2007, SEG Group, the first largest shareholder of the Company, issued Commitment Letter on Strengthening Management over Non-public Informationto 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 can hand this name list to Shenzhen Securities Regulatory Bureau and Shenzhen Stock Exchange for records. SEG Group implemented the commitment in the report period.
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-beginning to the end of next report period
Same period of last year
Change of increase/decrease (%)
Estimated amount of accumulative net profit(RMB’0000)
5,800.00
--
6,200.00
-31,209.21
--
--
Basic earnings per share(RMB/Share)
0.0739
--
0.0790
-0.3977
--
--
Explanations on forecast of performances
(1) ST Samsung—stock-jointly by theCompany of 22.45% equity, estimating to gained accumulative profit of RMB 12 million to RMB 16 million from the year-beginningto the end of next report period.
(2) The performance forecast has not been pre-audited by CPAs.
3.5 Particulars about the other significant events which need explanations
3.5.1 Particular about security investment
□Applicable √Inapplicable
3.5.2 Activities on receiving research, communication and interview in the report period
Date
Place
Way
The received parties
Contents discussed and
materials supplied
21 July 2010
The Company
Telephone communication
Investor
Get to know the basic information of the Company
12 August 2010
The Company
Telephone communication
Investor
Get to know the basic information of the Company
30 August 2010
The Company
Telephone communication
Investor
Get to know the basic information of the Company
7 September 2010
The Company
Telephone
Investor
Get to know the basic information
7Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2010(Full-Text)
communication
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. 30 September 2010 Unit: RMB Yuan
Balance at period-end
Balance at year-beginning
Items
Consolidation
Parent Company
Consolidation
Parent Company
Current assets:
Monetary funds
542,256,260.68
420,592,703.75
485,135,270.94
375,350,393.53
Settlement provisions
Capital lent
Transactional finance assets
Notes receivable
Accounts receivable
30,555,507.95
400,000.00
18,130,631.40
1,134,357.47
Accounts paid in advance
25,662,349.19
321,570.01
18,404,268.08
8,035,295.00
Insurance receivable
Reinsurance receivables
Contract reserves of reinsurance receivable
Interests receivable
2,460,821.92
2,460,821.92
Dividends receivable
Other receivables
12,415,281.48
41,384,858.08
11,971,998.74
45,306,466.00
Purchase restituted finance assets
Inventor
4,144,123.50
5,886,392.39
Non-current assets due within one year
Other current assets
Total current assets
615,033,522.80
462,699,131.84
541,989,383.47
432,287,333.92
Non-current assets:
Granted loans and advances
Finance assets available for sales
919,347.45
0.00
3,843,571.87
3,304,100.00
Held-to-maturity investment
Long-term accountsreceivable
Long-term equity investment
122,236,328.82
303,333,827.86
119,732,099.86
300,829,598.90
Investment property
589,742,487.06
339,872,587.51
442,502,999.44
347,797,315.91
Fixed assets
59,900,235.76
22,560,066.12
189,516,718.30
23,314,450.93
Construction in progress
1,679,702.07
26,192,075.55
Engineering materials
Disposal of fixed assets
8Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2010(Full-Text)
Productive biological assets
Oil and gas assets
Intangible assets
679,703.79
528,013.41
4,756,432.31
651,865.38
Expenses on research and development
Goodwill
10,328,927.82
0.00
10,328,927.82
Long-term expenses to be apportioned
15,149,670.91
1,442,785.70
13,041,779.82
1,165,451.06
Deferred incomes tax asset
9,140,144.47
5,994,015.93
7,586,398.99
5,994,015.93
Other non-current assets
Total non-current assets
809,776,548.15
673,731,296.53
817,501,003.96
683,056,798.11
Total assets
1,424,810,070.95
1,136,430,428.37
1,359,490,387.43
1,115,344,132.03
Current liabilities:
Short-term loans
0.00
Loans from central bank
Absorbing deposits and inter-bank deposits
Capital borrowed
Transaction financial liabilities
Notes payable
Accounts payable
5,550,801.94
2,358,565.12
8,225,509.02
2,178,169.12
Accounts received in advance
122,727,696.75
59,130,592.72
105,563,890.39
65,801,272.52
Selling financial assetsof repurchase
Commission charge and commission payable
Wages payable
1,426,221.82
99,311.12
4,261,476.99
2,065,724.98
Taxes payable
12,617,672.44
10,984,839.99
24,421,758.66
24,773,634.49
Interests payable
Dividends payable
1,295,963.57
153,403.29
921,420.73
153,403.29
Other accounts payable
107,736,805.89
38,477,457.94
86,454,289.91
41,932,495.62
Reinsurance payables
Insurance contract reserve
Securities trading of agency
Security sales of agency
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities
251,355,162.41
111,204,170.18
229,848,345.70
136,904,700.02
Non-current liabilities:
Long-term loans
Bonds payable
Long-term accountspayable
Special accounts payable
Projected liabilities
Deferred income tax liabilities
21,864,786.80
23,160,034.29
547,125.71
Other non-current
9Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2010(Full-Text)
liabilities
Total non-current liabilities
21,864,786.80
0.00
23,160,034.29
547,125.71
Total liabilities
273,219,949.21
111,204,170.18
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
407,751,952.12
404,980,399.08
396,922,482.95
394,348,208.41
Less: Inventory shares
Reasonable reserve
Surplus public reserve
102,912,835.67
102,912,835.67
102,912,835.67
102,912,835.67
Provisions of general risk
Retained profits
-232,468,306.89
-267,465,986.56
-268,431,923.52
-304,167,747.78
Balance difference of foreign currency translation
-466,174.06
-542,916.63
Total owner’s equity attributable to parent company
1,062,529,316.84
1,025,226,258.19
1,015,659,488.47
977,892,306.30
Minority interests
89,060,804.90
0.00
90,822,518.97
Total owner’s equity
1,151,590,121.74
1,025,226,258.19
1,106,482,007.44
977,892,306.30
Total liabilities and owner’s equity
1,424,810,070.95
1,136,430,428.37
1,359,490,387.43
1,115,344,132.03
4.2 Profit statement in the report period
Prepared by Shenzhen SEG Co., Ltd. July-September 2010 Unit: RMB Yuan
Amount of this period
Amount of last period
Items
Consolidation
Parent company
Consolidation
Parent company
I. Total operating incomes
103,795,650.70
27,114,911.97
69,649,034.41
24,901,333.58
Thereinto: Operating income
103,795,650.70
27,114,911.97
69,649,034.41
24,901,333.58
Interest income
0.00
0.00
0.00
0.00
Insurance gained
0.00
0.00
0.00
0.00
Commission charge and commission income
0.00
0.00
0.00
0.00
II. Total operating costs
90,879,968.70
17,769,010.71
60,930,535.31
18,733,355.32
Thereinto: Operating cost
76,000,224.38
11,327,546.47
45,631,991.25
10,528,239.12
Interest expense
0.00
0.00
0.00
0.00
Commission charge and commission expense
0.00
0.00
0.00
0.00
Cash surrender value
0.00
0.00
0.00
0.00
Net amount of expense of compensation
0.00
0.00
0.00
0.00
Net amount of withdrawal of insurance contract reserve
0.00
0.00
0.00
0.00
Bonus expense of guarantee slip
0.00
0.00
0.00
0.00
Reinsurance expense
0.00
0.00
0.00
0.00
Operating tax and extras
4,536,412.38
2,342,511.74
3,098,039.40
1,515,160.09
Sales expenses
-13,493.25
0.00
517,742.59
0.00
Administration expenses
10,677,413.13
4,739,865.40
10,424,300.72
4,604,674.13
Financial expenses
-320,587.94
-640,912.90
-1,018,648.58
-191,827.95
Losses of devaluation of assets
0.00
0.00
2,277,109.93
2,277,109.93
10Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2010(Full-Text)
Add: Changing income of fair value (Loss is listed with “-”)
0.00
0.00
0.00
0.00
Investment income (Loss is listed with “-”)
130,670.29
760,670.29
-19,372,478.15
-42,018,452.74
Thereinto: Investment income on affiliated company and joint venture
0.00
0.00
-73,707,920.10
-73,707,920.10
Exchange income (Loss is listed with “-”)
0.00
0.00
0.00
0.00
III. Operating profit (Loss is listed with “-”)
13,046,352.29
10,106,571.55
-10,653,979.05
-35,850,474.48
Add: Non-operating incomes
361,060.36
88,528.68
92,009.24
622,265.73
Less: Non-operating expenses
9,184.18
1,117.75
150,160.71
20,140.95
Thereinto: Disposal loss of non-current assets
0.00
0.00
0.00
0.00
IV. Total Profit (Loss is listed with “-”)
13,398,228.47
10,193,982.48
-10,712,130.52
-35,248,349.70
Less: Income tax expense
3,095,964.46
2,056,075.10
23,276,831.74
23,143,260.75
V. Net profit (Net loss is listed with “-”)
10,302,264.01
8,137,907.38
-33,988,962.26
-58,391,610.45
Net profits attributable to owner’s of parent company
9,066,771.92
8,137,907.38
-33,284,043.64
-58,391,610.45
Minority shareholders’ gains and losses
1,235,492.09
0.00
-704,918.62
0.00
VI. Earnings per share:
i. Basic earnings per share
0.0115
0.0104
-0.0424
-0.0744
ii. Diluted earnings per share
0.0115
0.0104
-0.0424
-0.0744
VII. Other consolidated incomes
264,493.4100
0.0000
VIII. Total consolidated incomes
10,566,757.4200
8,137,907.3800
-33,988,962.26
-58,391,610.45
Total consolidated incomesattributable to owners of parent company
9,254,228.7400
8,137,907.3800
-33,284,043.64
-58,391,610.45
Total consolidated incomesattributable to minority shareholders
1,312,528.6800
0.0000
-704,918.62
0.00
4.3 Profit statement from the year-beginning to the end of report period
Prepared by Shenzhen SEG Co., Ltd. January-September 2010 Unit: RMB Yuan
Amount in this period
Amount in last period
Items
Consolidation
Parent Company
Consolidation
Parent Company
I. Total operating incomes
282,093,078.90
83,330,734.35
207,531,519.48
79,179,967.63
Including: Operating income
282,093,078.90
83,330,734.35
207,531,519.48
79,179,967.63
Interest income
0.00
0.00
Insurance gained
0.00
0.00
Commission charge and commission income
0.00
0.00
II. Total operating costs
227,227,150.38
44,703,458.38
153,332,297.18
41,519,495.41
Including: Operating cost
191,533,671.99
30,736,038.62
124,263,257.75
30,831,442.86
Interest expense
0.00
0.00 11Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2010(Full-Text)
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
11,802,215.03
5,434,123.62
9,454,025.01
4,626,820.01
Sales expenses
2,501,896.14
0.00
1,870,791.51
0.00
Administration expenses
24,214,631.34
12,174,819.60
26,666,169.58
13,409,051.54
Financial expenses
-2,825,264.12
-3,641,523.46
-7,244,756.60
-5,724,928.93
Losses of devaluation of asset
-1,677,190.07
-1,622,890.07
Add: Changing income of fair value(Loss is listed with “-”)
0.00
0.00
0.00
0.00
Investment income (Loss is listed with “-”)
-2,733,552.46
7,279,089.98
-205,523,356.85
-224,456,041.06
Including: Investment income on affiliated company and joint venture
-287,789,592.30
-287,789,592.30
Exchange income (Loss is listed with “-”)
0.00
0.00
0.00
0.00
III. Operating profit (Loss is listed with “-”)
52,132,376.06
45,906,365.95
-151,324,134.55
-186,795,568.84
Add: Non-operating income
953,064.46
271,327.30
2,131,072.31
1,646,302.13
Less: Non-operating expense
480,938.62
329,411.84
259,970.62
20,140.95
Including: Disposal loss of non-current asset
IV. Total Profit (Loss is listed with “-”)
52,604,501.90
45,848,281.41
-149,453,032.86
-185,169,407.66
Less: Income tax expense
13,010,936.32
9,146,520.19
27,662,817.32
23,143,260.75
V. Net profit (Net loss is listed with “-”)
39,593,565.58
36,701,761.22
-177,115,850.18
-208,312,668.41
Net profit attributable to owner’s of parent company
35,963,616.63
36,701,761.22
-179,367,562.66
-208,312,668.41
Minority shareholders’ gains and losses
3,629,948.95
0.00
2,251,712.48
0.00
VI. Earnings per share
i. Basic earnings per share
0.0458
0.0468
-0.2286
-0.2654
ii. Diluted earnings per share
0.0458
0.0468
-0.2286
-0.2654
VII. Other consolidated incomes
11,005,236.190
10,632,190.670
VIII. Total consolidated incomes
50,598,801.77
47,333,951.890
-177,115,850.18
-208,312,668.41
Total consolidated incomesattributable to owners of parent company
46,869,828.37
47,333,951.890
-179,367,562.66
-208,312,668.41
12Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2010(Full-Text)
Total consolidated incomesattributable to minority shareholders
3,728,973.40
2,251,712.48
0.00
4.4 Cash flow statement from year-beginning to the end of report period
Prepared by Shenzhen SEG Co., Ltd. January-September 2010 Unit: RMB Yuan
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
294,158,518.03
85,491,297.74
260,617,110.94
65,802,614.72
Net increase of customer deposit and interbank deposit
0.00
0.00
0.00
0.00
Net increase of loan from central bank
0.00
0.00
0.00
0.00
Net increase of capital borrowed from other financial institution
0.00
0.00
0.00
0.00
Cash received from original insurance contract fee
0.00
0.00
0.00
0.00
Net cash received from reinsurance business
0.00
0.00
0.00
0.00
Net increase of insured savings and investment
0.00
0.00
0.00
0.00
Net increase of disposal of transaction financial asset
0.00
0.00
0.00
0.00
Cash received from interest, commission charge and commission
0.00
0.00
0.00
0.00
Net increase of capital borrowed
0.00
0.00
0.00
0.00
Net increase of returned business capital
0.00
0.00
0.00
0.00
Write-back of taxes and fees received
0.00
0.00
0.00
0.00
Other cash received relating to operating activities
255,785,350.51
138,755,047.91
119,356,205.53
88,657,283.34
Subtotal of cash inflow arising from operating activities
549,943,868.54
224,246,345.65
379,973,316.47
154,459,898.06
Cash paid for purchasing commodities and receiving labor service
136,886,953.24
32,536,916.02
108,660,440.53
6,938,390.43
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,
0.00
0.00
0.00
0.00
13Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2010(Full-Text)
commission charge and commission
Cash paid for bonus of guarantee slip
0.00
0.00
0.00
0.00
Cash paid to/for staff and workers
34,508,865.62
16,230,970.03
29,902,646.33
15,605,792.88
Taxes and fees paid
100,180,562.75
84,502,021.06
62,501,960.96
43,323,819.59
Other cash paid relating to operating activities
212,330,566.08
64,042,016.56
125,175,644.96
105,965,276.86
Subtotal of cash outflow arising from operating activities
483,906,947.69
197,311,923.67
326,240,692.78
171,833,279.76
Net cash flows arising from operating activities
66,036,920.85
26,934,421.98
53,732,623.69
-17,373,381.70
II. Cash flows arising from investing activities:
Cash received from recovering investment
0.00
0.00
88,192,419.25
87,622,419.25
Cash received from investment income
4,386,402.77
14,399,045.21
11,440,899.88
23,681,889.13
Net cash received from disposal of fixed, intangible and other long-term assets
4,547,915.77
4,219,506.77
435,620.00
0.00
Net cash received from disposal of subsidiaries and other units
0.00
0.00
24,511,448.87
38,280,000.00
Other cash received relating to investing activities
0.00
0.00
0.00
0.00
Subtotal of cash inflow from investing activities
8,934,318.54
18,618,551.98
124,580,388.00
149,584,308.38
Cash paid for purchasing fixed, intangible and other long-term assets
13,197,133.79
251,265.25
13,779,480.64
550,510.00
Cash paid for investment
0.00
0.00
0.00
69,000,000.00
Net increase of mortgaged loans
0.00
0.00
0.00
0.00
Net cash received from subsidiaries and other units
0.00
0.00
67,801,287.47
0.00
Other cash paid relating to investing activities
0.00
0.00
2,228,261.00
0.00
Subtotal of cash outflow from investing activities
13,197,133.79
251,265.25
83,809,029.11
69,550,510.00
Net cash flows arising from investing activities
-4,262,815.25
18,367,286.73
40,771,358.89
80,033,798.38
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
0.00
0.00
Cash received from
0.00
0.00
0.00
0.00
14Shenzhen SEG Co., Ltd. The Third Quarterly Report for 2010(Full-Text)
15
issuing bonds
Other cash received relating to financing activities
0.00
0.00
0.00
0.00
Subtotal of cash inflow from financing activities
0.00
0.00
0.00
0.00
Cash paid for settling debts
0.00
0.00
60,293.72
0.00
Cash paid for dividend and profit distributing or interest paying
4,596,996.55
0.00
23,123,489.44
15,242,627.67
Including: Dividend and profit of minority shareholder paid by subsidiaries
0.00
0.00
0.00
0.00
Other cash paid relating to financing activities
0.00
0.00
0.00
0.00
Subtotal of cash outflow from financing activities
4,596,996.55
0.00
23,183,783.16
15,242,627.67
Net cash flows arising from financing activities
-4,596,996.55
0.00
-23,183,783.16
-15,242,627.67
IV. Influence on cash and cash equivalents due to fluctuation in exchange rate
-56,119.31
-59,398.49
2,065.97
0.00
V. Net increase of cash and cash equivalents
57,120,989.74
45,242,310.22
71,322,265.39
47,417,789.01
Add: Balance of cash and cash equivalents at the period -begin
485,135,270.94
375,350,393.53
400,172,059.09
298,174,735.64
VI. Balance of cash and cash equivalents at the period -end
542,256,260.68
420,592,703.75
471,494,324.48
345,592,524.65
4.5 Auditor’ report
Auditor’s opinions: Un-audited
