The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
SHENZHEN SEG CO., LTD.
The Third Quarterly Report 2011 (Full Text)
§1 Important Notices
1.1 The Company’s board of directors, board of supervisors, directors, supervisors and senior
executives guarantee that the information contained in this Report do not have any untruthful records,
misleading representations or material omissions and take all responsibilities individually and jointly
to the truthfulness, accuracy and completeness of its content.
1.2 The Company’s third quarterly financial report has not been audited by any certified public
accountant.
1.3 Wang Chu, the Company’s person-in-charge, Li Lifu, person-in-charge of accounting work, and
Ying Huadong, person-in-charge of the accounting department (executive of accounting matters)
represents and states that the financial report in the present quarterly report is truthful and complete.
§2 Company’s Basic Information
2.1 Main Accounting Data and Financial Indicators
Unit: Yuan
Increase or decrease
September 30th 2011 December 31st 2010
percentage (%)
Total Assets (Yuan) 1,533,631,915.22 1,466,272,625.92 4.59%
Shareholder’s Equity Attributable to
1,111,727,784.37 1,083,983,092.76 2.56%
Listed Company Shareholders (Yuan)
Share Capital (share) 784,799,010.00 784,799,010.00 0.00%
Net Asset Per Share Attributable to
Listed Company Shareholders 1.42 1.38 2.90%
(Yuan/share)
Year-on-year Year-on-year
January-Septem
July-September 2011 increase or increase or
ber 2011
decrease (%) decrease (%)
Total Operating Revenue (Yuan) 110,290,304.31 6.26% 313,695,525.80 11.20%
Net profits attributable to listed
1,273,750.35 -85.95% 27,606,138.70 -23.24%
company shareholders (Yuan)
Net cash flow generated from - - 65,567,681.20 -0.71%
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
operating activities (Yuan)
Net cash flow per share generated
- - 0.0835 -0.71%
from operating activities (Yuan/share)
Basic earnings per share (Yuan/share) 0.0016 -86.09% 0.0352 -23.14%
Diluted earnings per share
0.0016 -86.09% 0.0352 -23.14%
(Yuan/share)
Weighted average ROE (%) 0.11% -0.75% 2.51% -0.95%
Weighted average ROE after
deducting nonrecurring gains and -0.03% -0.86% 2.15% -1.06%
losses (%)
Nonrecurring gains and losses
√ Applicable □ Not Applicable
Unit: Yuan
Nonrecurring gains and losses Amount Notes (If applicable)
Gains or losses from disposal of non-current assets 82,074.25
Other non-operating income and expenditure except for the above
438,120.18
items
Influenced amount of minority shareholders’ equity -129,973.33
Influenced amount of income tax -116,783.65
Total 273,437.45 -
2.2 Table on the total number of shareholders and the shareholding conditions of the top ten
shareholders without limited trading conditions at the end of this report period
Unit: Share
Total number of shareholders at the end
62,925
of this Report period (Account)
Shareholding conditions of the top ten shareholders of tradable shares without limited trading condition
Amount of tradable shares without
Shareholder name (Full name) limited trading condition held at the Type of share
end of this report period
Shenzhen SEG Group Co., Ltd. 237,359,666 RMB ordinary share
Fudak Enterprise Group Guangzhou Co.,
18,880,334 RMB ordinary share
Ltd.
Taifook Securities Company 7,980,784 Domestically listed foreign share
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
Limited-Account Client
Gong Xihua 5,311,520 Domestically listed foreign share
Zhu Wei 4,066,739 RMB ordinary share
Tang Lizhu 3,796,200 RMB ordinary share
Guotai Junan Securities (HK) Ltd. 3,689,041 Domestically listed foreign share
Dalian Huaxin Trust Co., Ltd. – Beta 1
3,000,000 RMB ordinary share
Structured Securities Investment Portfolio
Cao Xianhua 2,702,000 RMB ordinary share
China Merchants Securities (HK) Co., Ltd. 2,672,676 Domestically listed foreign share
§3 Important Matters
3.1 Information on significant changes in the company’s main items in accounting statements
and financial indicators and relevant reasons
√ Applicable □ Not Applicable
I. Balance Sheet Items
Item September 30th December 31st Difference Change
2011 2010 percentage%
Advances 126,028,828.95 25,974,587.30 100,054,241.65 385.20%
Other receivables 20,241,534.03 10,859,116.83 9,382,417.20 86.40%
Inventory 1,103,166.41 4,205,886.55 -3,102,720.14 -73.77%
Intangible assets 971,123.26 631,364.93 339,758.33 53.81%
Long-term deferred assets 24,561,786.78 13,977,797.51 10,583,989.27 75.72%
Taxes payable 20,102,065.99 14,037,120.99 6,064,945.00 43.21%
Difference from foreign
currency converted in -228,928.56 -411,391.17 182,462.61 -44.35%
statements
1._Main reasons for the increase in advance payments: ① According to relevant agreements, there was certain
increase in the rental paid in advance to the property leaser by the Suzhou SEG Electronics Market Management Co.,
Ltd., a controlled company under the Company holding 45% of its shares. ②The Company and Shenzhen SEG
Industrial Investment Co., Ltd. (91.79% of its share capital is held by the Company) and Shenzhen SEG E-Business
Co., Ltd. (51% of its share capital is held by the Company) jointly invested RMB 81 million Yuan (thereinto the
Company invested RMB 54 million Yuan, SEG Industrial RMB 24 million Yuan and SEG E-business RMB 3 million
Yuan respectively) in Shenzhen SEG Small Credit Co., Ltd. (hereinafter referred to as “SEG Small Credit”, please
refer to 3.2.4 of this Report for particulars concerning its preparing). The investment has been paid out but the SEG
Small Credit is still in the process of registration, which caused the increase in this item.
2._Main reason for the increase in other receivables: Shenzhen SEG Baohua Enterprise Development Co., Ltd.
(66.58% of its share capital is held by the Company) established in this period the Mellow Orange Hotel Bao’an
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
Outlet, which added the deposit for renting the premise of the hotel to this account.
3._Main reason for inventory decrease: During this report period, the Company’s “Buy-It” stores transformed its
self-operation business into a joint operation mode, which caused the decrease of inventory.
4._Main reason for the increase in intangible assets: During this report period, the intangible assets of Shenzhen SEG
E-business Co., Ltd. (51% of its share capital is held by the Company), generated from the “Saigetong” Research and
Development Project, were also added to the Company’s financial statements.
5. Main reasons for the increase in long-term deferred assets: During this report period, decoration work was
completed in the new outlet, into which the Company’s controlled subsidiary Shenzhen SEG Electronics Market
Management Company Limited (70% of its share capital is held by the Company) (hereinafter referred to as
“Longgang SEG”) was removed. And the balance of the decoration work in the account Construction In Process was
transferred into this account. During this report period, the premise decoration costs of the newly-opened Shenzhen
SEG Nanjing Electronics Market Management Company Limited (100%of its share capital is held by the Company)
(hereinafter referred to as “Nanjing SEG”) were entered in this account.
6._Main reason for the increase in taxes payable: During this report period, the income tax rate in the Shenzhen region
increased from 22% to 24%. The increase in the taxable income of the enterprises in Shenzhen region caused the
increase of payable income tax.
7._Main reason for the difference from foreign currency converted in statements: During this report period, the RMB
appreciated and the debts decreased in the SEG Logistics (HK) Co. Ltd. which is the subsidiary of Shenzhen SEG
Logistics Co. Ltd, a controlled company (95% of its share capital is held by the Company). Exchange rate and changes
in financial statement structure are the dual reasons causing the change of this account.
II. Income Statement Items
Item This report period Same period of Difference Change
last year percentage %
Financial expenses -5,773,180.40 -2,825,264.12 -2,947,916.28 104.34%
Investment income -5,227,389.11 -2,733,552.46 -2,493,836.65 91.23%
Non-business income 608,935.35 953,064.46 -344,129.11 -36.11%
Non-business expense 87,447.90 480,938.62 -393,490.72 -81.82%
Income tax expense 17,135,120.57 13,010,936.32 4,124,184.25 31.70%
Gains or Losses in minority
2,450,424.82 3,629,948.95 -1,179,524.13 -32.49%
shareholder’s interest
Other consolidated Income 116,512.33 11,005,236.19 -10,888,723.86 -98.94%
Total amount of
30,173,075.85 50,598,801.77 -20,425,725.92 -40.37%
consolidated income
Total amount of
consolidated income
27,744,691.61 46,869,828.37 -19,125,136.76 -40.80%
attributable to owners of the
parent company
Total amount of
consolidated income
2,428,384.24 3,728,973.40 -1,300,589.16 -34.88%
attributable to minority
shareholders
1._Main reason of the change of financial expenses: During this report period, the income from the interests of the
Company’s bank deposits increased.
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
2._Main reason of the decrease of investment income: During the year-on-year comparison period in the previous year,
the Company sold the “ST 07” shares, one of its salable financial assets, and obtained an investment income of RMB
2.95 million Yuan while there was no such investment income in this report period.
3._Main reason of the decrease of non-business income: During the year-on-year comparison period in the previous
year, the Company implemented a “vehicle ownership reform” and the income from selling business cars was entered
in this account while there were no similar cases happened during this report period.
4._Main reason for the decrease of non-business expense: During the year-on-year comparison period in the previous
year, the Company donated an amount of RMB 300,000 Yuan to the Zhanjiang Ecological Stock Breeding Poverty
Assistance Project upon the approval of the board of directors while there were no similar cases happened during this
report period.
5._Main reason for the increase in income tax expense: During this report period, the income tax rate in the Shenzhen
region rose from 22% to 24% and caused the increase in income tax expense.
6._Main reason for the decrease in gain or loss of minority shareholder’s interest: During this report period, the
newly-established SEG E-business Company, 51% of whose shares is held by the Company, failed to realize expected
gains and suffered a loss of RMB 6.56 million Yuan.
7._Main reason for the decrease in other consolidated income: During the year-on-year comparison period in the
previous year, Shenzhen SEG Samsung Corporation Limited (hereinafter referred to as “ST Samsung”) (22.45% of
whose share capital is held by the Company), obtained financial support of RMB 56 million from its shareholder
Samsung Kangning Investment Co., Ltd. and the fund was entered as capital reserves. As the Company handled the
accounting matters with the ST Samsung in accordance with the equity method, the contribution obtained by ST
Samsung would affect the Company’s capital reserve according to the investment proportions. There were no similar
cases in ST Samsung in this report period.
8._Main reasons for the decrease in the total amount of consolidated income: ① The loss suffered by the enterprises
newly acquired by the Company caused the decrease in the net profits of the Company. ② The same as stated in Note
7.
9._Main reason for the decrease in the total consolidated income attributable to the owners of the parent company: ①
The loss suffered by the enterprises newly acquired by the Company caused in decrease in the net profits of the parent
company. ② The same as stated in Note 7.
10._The total consolidated income attributable to the minority shareholder’s interests: The same as stated above in
Note 6.
III. Cash Flow Statement
Item This report period Same period of Difference Change
last year percentage %
Other cash received from
342,294,996.42 255,785,350.51 86,509,645.91 33.82%
operation activities
Cash paid to and for employees 46,377,062.44 34,508,865.62 11,868,196.82 34.39%
Other cash paid to operation
331,756,926.34 212,330,566.08 119,426,360.26 56.25%
activities
Net cash amount received from
disposing of fixed assets,
100,170.00 4,547,915.77 -4,447,745.77 -97.80%
intangible assets and other
long-term assets
Cash paid to purchase or build
20,237,787.63 13,197,133.79 7,040,653.84 53.35%
fixed assets, intangible assets
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
and other long-term assets
Cash paid for investment 81,000,000.00 0.00 81,000,000.00
Cash received from accepting
16,170,000.00 0.00 16,170,000.00
investments
Including: cash received by
subsidiary from accepting the
16,170,000.00 0.00 16,170,000.00
investments from minority
shareholders
Cash received from getting
2,000,000.00 0.00 2,000,000.00
loans
1._Main reasons for the increase in other cash received and related to operation activities: ① The increase during this
report period in the consolidated rental collected from market merchants in the newly-established Nanjing SEG (100%
of its share capital is held by the Company) caused the increase of this account. ② The business volume increased in
the centralized payment collection service carried out by the electronics market so that the goods payments collected
in agency for the merchants in the market increased in turn.
2._Main reason for the increase of the cash paid to and for employees: During this report period, the increase in the
Company’s employees resulted from the situation that the Company newly formed the SEG E-business, the Nanjing
SEG and the Mellow Orange Hotel Bao’an Outlet caused in the increase in this account.
3._Main reason for other cash paid and related to operation activities: ① During this report period, the situation that
the Company newly formed the SEG E-business, the Nanjing SEG and the Mellow Orange Hotel Bao’an Outlet
caused in the increase in this account. ② The business volume increased in the centralized payment collection service
carried out by the electronics market so that the goods payment refund paid to the merchants increased.
4._Main reason for the decrease of the net cash amount obtained from disposing of fixed assets, intangible assets and
other long-term assets: ① The Company implemented a “vehicle ownership reform” in the year-on-year comparison
period in the previous year and the cash inflow caused by selling business car was relatively large while there were no
similar cases in this report period. ② The Company sold the sellable financial assets of the “ST07” stocks and
obtained a cash amount of RMB 3.76 million Yuan while there were no stocks sold in the current period.
5._Main reason for the increase of the cash paid to purchase or build fixed assets, intangible assets and other long term
assets: During this report period, the decoration and fixed assets purchase for the newly-opened SEG E-business
company, the Nanjing SEG and the Mellow Orange Hotel Bao’an Outlet increased the account.
6._Main reason for the increase in the cash paid for investment: The loans paid by the SEG Small Credit invested by
the Company caused increase to the account while there were no investments of similar types in the year-on-year
comparison period in the previous year.
7._Main reason for the increase in the cash received from accepting investments: During this report period, the fund
invested by minority shareholders of the SEG E-business Company and the Xi’an Hairong SEG Electronics Market
Company Limited (hereinafter referred to as “Xi’an Hairong SEG”), two companies newly acquired by the Company,
caused increase to the account.
8._Including: Main reason for the increase in the cash received by subsidiary from accepting investments from
minority shareholders: The same reason as Note 7 above.
9._Main reason for the increase in the cash received from getting loans: In the current period, the controlled SEG
Industrial (91.79% of its shares capital is held by the Company) borrowed RMB 2 million Yuan from the Shenzhen
SEG Group Co., Ltd., the controlling shareholder of the Company (hereinafter referred to as “SEG Group”) while
there was similar cases happened in the previous accounting period. (For details, please refer to Announcement of
Shenzhen SEG Co., Ltd. Concerning Related Transaction in the Controlled Subsidiary Shenzhen SEG Industrial
Investment Co., Ltd. Borrowing RMB Two Million Yuan from the Controlling Company Shenzhen SEG Group Co., Ltd.
disclosed in Securities Times, China Securities Journal, Securities Daily and Hong Kong Commercial Daily and the
CNINFO.COM on August 26th 2011.)
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
3.2 Analysis and explanation on the developments of significant matters and relevant influences
and solutions
3.2.1 Qualified opinions
□ Applicable √ Not applicable
3.2.2 Whether the Company has provided funds to controlling shareholders or their associated
parties or guarantees to parties outside the Company in violation of stipulated procedures?
□ Applicable √ Not applicable
3.2.3 Execution and performance of major contracts in routine operating activities
□ Applicable √ Not applicable
3.2.4 Others
√ Applicable □ Not applicable
(I) Upon the deliberation and approval of the fifth meeting of the fifth board of directors of the Company held on
December 10th 2010, the Company and the SEG Group, its controlling shareholder, and Shenzhen SEG High-Tech
Investment Company Limited (hereinafter referred to as “SEG High-Tech”), the Group’s controlled subsidiary, jointly
invested and formed the “Shenzhen SEG E-business Company Limited”. Shenzhen SEG E-business Company Limited
has a registered capital of RMB 48 million Yuan (the first batch of investment reaching RMB 30 million Yuan). The
parties in the joint venture invested in cash according to their respective shareholding proportions: The Company holds
51% of the shares, the SEG Group 34%, and the SEG High-Tech 15%. The Company invested RMB 24.48 million
Yuan according to its shareholding proportion. (For more information, see the Announcement of Shenzhen SEG
Company Limited on the Fifth Meeting of Its Fifth Board of Directors and the Announcement of Shenzhen SEG
Company Limited on the Related Transaction in Which the Company and Its Associated Parties Jointly Invested and
Formed an E-business Company as disclosed by the Company on December 13th, 2010 in the China Securities
Journal, the Securities Times, the Securities Daily, the Hong Kong Commercial Daily, and the CNINFO.COM) The
Company has already put in its first batch of investment of RMB 15.3 million Yuan. The Shenzhen SEG E-business
Company Limited completed its registration records with the Shenzhen Municipal Supervision and Administration
Bureau on January 24th 2011 and it was officially incorporated on March 27th 2011. Currently the SEGNET operated
by the SEG E-business is about to start operation online. Various businesses of the company are also being carried out
in every aspect.
(II) Upon the deliberation and approval of the eighth interim meeting of the fifth board of directors of the Company
held on April 7th 2011, it was approved that the Company invested RMB 20 million Yuan in Nanjing to establish the
Nanjing SEG. The Nanjing SEG then rented the business premises on the 1st to 5th floors of the podium building of the
Huali International Plaza owned by the Nanjing Yunde Investment and Development Company Limited. These were
used for the establishment and operation of the SEG Electronics Market and its relevant auxiliary businesses (For more
information, see the Announcement on the Resolution of the Eighth Interim Meeting of the Fifth Board of Directors of
Shenzhen SEG Company Limited and the Announcement of Shenzhen SEG Company Limited on Investing in the
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
Project of the Nanjing SEG Electronics Market as disclosed by the Company on January 11th 2011 in the China
Securities Journal, the Securities Times, the Securities Daily, the Hong Kong Commercial Daily, and the
CNINFO.COM). The Nanjing SEG Electronics Market held its opening ceremony on September 28th 2011.
(III) Upon the deliberation and approval of the fifth interim meeting of the fifth board of directors of the Company
held on January 10th 2011, SEG Baohua, a subsidiary which the Company held 66.58% of its shares, rented the
property of the “Jingyang Hotel” in the Bao’an District in Shenzhen (the legal representative is Chen Jingsheng). The
SEG Baohua invested RMB 9.98 million Yuan to establish the Mellow Orange Hotel Bao’an Outlet. (For more
information, see the Announcement on the Resolution of the Fifth Interim Meeting of the Fifth Board of Directors of
Shenzhen SEG Company Limited and the Announcement of Shenzhen SEG Company Limited on Its Controlled
Branch’s Investment Outside the Company as disclosed on January 11th 2011 in the China Securities Journal, the
Securities Times, the Securities Daily, the Hong Kong Commercial Daily, and the CNINFO.COM and the
Announcement of Shenzhen SEG Company Limited on Its Controlled Branch’s Signing a Property Lease Contract as
published on February 1st 2011 in China Securities Journal, the Securities Times, the Securities Daily, the Hong Kong
Commercial Daily, and the CNINFO.COM). The Mellow Orange Hotel Bao’an Outlet was officially opened on
September 8th 2011.
(IV) Upon the deliberation and approval of the eleventh interim meeting of the fifth board of directors of the Company
held on June 22nd 2011, the Company and the Xi’an Hairong Estate Group Co., Ltd. (hereinafter referred to as
“Hairong Group”) jointly invested and formed the Xi’an Hairong SEG. The Xi’an Hairong SEG rented the Buildings 1
and 2 of Haijing International Plaza, located at the crossing area of the Fengcheng Second Road and the Wenjing Road
in the Xi’an Municipal Economic Development Zone, to establish and open the SEG electronics market. Xi’an
Hairong SEG has a registered capital of RMB 3 million Yuan. The Company invested RMB 1.53 million Yuan,
accounting for 51% of its total share capital, while the Hairong Group invested RMB 1.47 million Yuan, accounting
for 49% of its total share capital. (For more detail, see the Announcement on the Resolution of the Eleventh Interim
Meeting of the Fifth Board of Directors of Shenzhen SEG Company Limited and the Announcement of Shenzhen SEG
Company Limited on Investing in the Project of the Xi’an SEG Electronics Market (in the Economic Development
Zone) as disclosed by the Company on June 24th 2011 the China Securities Journal, the Securities Times, the Securities
Daily, the Hong Kong Commercial Daily, and the CNINFO.COM). At present, the Xi’an Hairong SEG has already
been registered and established. Preparation work such as decoration is now being carried out before the opening of the
market.
(V) Upon the deliberation and approval of the sixth meeting of the fifth board of directors of the Company held on
March 25th 2011, as the Company needs to rent from the SEG Group, the controlling shareholder of the Company,
party of the properties on the eighth floor of the SEG Plaza owned by the group and use these as a transitional
warehouse for the merchants in the electronics market of the Company so as to meet the needs in carrying out the
operation and business of the electronics market, and as it is necessary that the Company paid rental and property
management fee to the SEG Group during the renting period, the board of directors of the Company approved, under
the circumstance that affiliated directors avoided voting, that the Company might conduct in 2011 the above routine
operation related transaction in the respect of property renting with the SEG Group according to fair market price
within a limited of RMB one million Yuan. (For more information, see the Announcement on the Resolution of the
Sixth Meeting of the Fifth Board of Directors of Shenzhen SEG Company Limited and the Announcement of Shenzhen
SEG Company Limited on the Expected Items in the Company’s Routine Operation Related Transactions in 2011 as
disclosed on March 29th 2011 in the China Securities Journal, the Securities Times, the Securities Daily, the Hong
Kong Commercial Daily, and the CNINFO.COM ) Up to the end of this report period, the Company has paid to the
SEG Group a total of RMB 378,000 Yuan of rent and property management fee with regard to the routine operation.
(VI) Upon the deliberation and adoption of the thirteenth interim meeting of the fifth board of directors of the
Company held on August 1st 2011 and the deliberation and approval of the first interim shareholders’ meeting of the
Company in 2011 held on August 18th 2011, the Company, the SEG Industrial controlled by the Company holding
91.79% of its shares, the SEG E-business controlled by the Company holding 51% of its shares, the SEG Group being
the controlling shareholder of the Company, and the Shenzhen SEG Properties Development Company Limited
(hereinafter referred to as the SEG Properties) being a controlled subsidiary of the SEG Group jointly invested and
formed the Shenzhen SEG Small Credit Company Limited (its name is subject to the final verification of the industrial
and commercial registration departments). The SEG Small Credit has a registered capital of RMB 150 million Yuan.
The Company invested RMB 54 million Yuan, accounting for 36% of its total share capital, the SEG Industrial RMB
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
24 million Yuan, accounting for 16% of its share capital, and the SEG E-business RMB three million Yuan, accounting
for 2% of its share capital. Upon conversion on the basis of the equity proportions of various shareholders and the
investment proportion in the project, the Company eventually holds a proportion of 51.71% in the share equity of the
SEG Small Credit. (For more information, see the Announcement on the Resolution of the Thirteenth Interim Meeting
of the Fifth Board of Directors of Shenzhen SEG Company Limited and the Announcement of Shenzhen SEG Company
Limited on the Related Transaction in Which the Company, Its Controlled Branch and the Shenzhen SEG Group
Company Limited Being Its Controlling Shareholder, and the Shenzhen SEG Property Development Company Being
the Group’s Controlled Subsidiary Jointly Invested and Formed the “Shenzhen Micro Credit Company Limited” as
published on August 3rd 2011 in the China Securities Journal, the Securities Times, the Securities Daily, the Hong
Kong Commercial Daily, and the CNINFO.COM, and also the Announcement of Shenzhen SEG Company Limited on
the Resolution of the First Interim Shareholders’ Meeting in 2011 as published in the abovementioned media on August
19th 2011.) Up to the end of this report period, the SEG Small Credit was still in the stage of preparation and of the
examination and approval by competent governmental departments.
(VII) Upon the deliberation and adoption of the thirteenth interim meeting of the fifth board of directors of the
Company held on August 1st 2011 and the deliberation and approval of the first interim shareholders’ meeting of the
Company in 2011 held on August 18th 2011, it was approved that the Company and its controlled subsidiaries might
use an amount no more than RMB 200 million to purchase medium and short term low risk bank property management
products. If the above limit is not exceeded, such fund as deliberated and adopted in the Company’s shareholders’
meeting might be used recurrently within three years. (For more detail, see the Announcement on the Resolution of the
Thirteenth Interim Meeting of the Fifth Board of Directors of Shenzhen SEG Company Limited and the Announcement
of Shenzhen SEG Company Limited on the Company Using Its Own Idle Funds to Purchase Bank Property
Management Products as published on August 3rd 2011 in the China Securities Journal, the Securities Times, the
Securities Daily, the Hong Kong Commercial Daily, and the CNINFO.COM, and also the Announcement of Shenzhen
SEG Company Limited on the Resolution of the First Shareholders’ Meeting in 2011 as published in the
abovementioned media on August 19th 2011). As of the period-end of this report period, according to the content of the
above resolution, the Company has already used RMB 10 million Yuan to purchase from ICBS the bond-type
financing product, whose term is 42 days and expected annual yield rate is 5%.
(VIII) Legal Actions
The Guangzhou Jiajie Technologies Company Limited (hereinafter referred to as “Guangzhou Jiajie”) and the
Shenzhen SEG Industrial Investment Company Limited being a controlled subsidiary of the Company (hereinafter
referred to as “SEG Industrial”) signed a SYBASE Order Contract on June 25th 2010. The Guangzhou Jiajie purchased
the SYBASE software from the SEG Industrial to sell to other parties. As there was difference in the presentations on
the payment terms in the Order Contracts held separately by the SEG Industrial and the Guangzhou Jiajie, dispute
arose between the parties with respect to the payment and collection of goods payment. The payment terms in the
Order Contract included two optional clauses: The first was that, “within 60 days after the goods arrive at the place of
delivery and pass acceptance inspection after it is powered and operated, namely before August 30th, 2010, the Seller
shall issue the Buyer a VAT invoice in the full amount of the contract price while the Buyer shall pay the goods
payment in full.” The second was that “the Seller shall issue the Buyer a VAT invoice in the full amount of the contract
price while the Buyer shall pay goods payment to the Seller within 7 days after the receipt of the full amount of the
goods payment paid by the Users”. And the Order Contract held by the SEG Industrial had ticks (“√”) on both clauses
while that held by the Guangzhou Jiajie only had a tick on the second clause. The Guangzhou Jiajie sold the SYBASE
software to the Guangzhou Yushi Information Technology Company Limited (hereinafter referred to as “Guangzhou
Yushi”) and the Guangzhou Yushi would resell it to end users. As the Guangzhou Yushi did not pay the goods payment
to the Guangzhou Jiajie, the Guangzhoujia has already filed an action to the court against the Guangzhou Yushi. But
the legal representative of the Guangzhou Yushi has emigrated overseas. As analyzed on the basis of the Order
Contract held by the Guangzhou Jiajie, the necessary condition for the payment to the Guangzhou Jiajie that the
Guangzhou Jiajie receives payment from the Guangzhou Yushi, it is very likely that the goods payment becomes
uncollectible, based on the analysis of the lawyer on the current situation. The amount of the subject matter in the
Contract is RMB 3,052,571.00 Yuan. At the end of the year 2010, bad debt provision was accrued on the basis of a
90% proportion of the payment. The Company has filed an action on the above dispute to the court. The court accepted
the case and would hear it at a selected time.
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
(IX) Developments in Building Internal Control Specifications in the Company during this report period
1. On July 25th, the Shenzhen Branch of the Deloitte Touche Tohmatsu CPA Ltd. as an agency body conducted the
Internal Control Evaluation Training for the Company leaders, the Company’s internal control building working group,
and the internal control working groups of various controlled subsidiaries. The trainers introduced the internal control
evaluation guide, the work arrangement on the implementation of internal control evaluation, internal control
evaluation and test methods, internal control performance evaluation and supervision. After the session, they
conducted on-site exchange with the participants and answered their questions.
2. Deloitte as an internal control agency body completed the third stage work of “internal control system evaluation”
on the Company’s “first batch internal control building units” and prepared and completed the internal control
application manual and the internal control evaluation manual.
3. The Company established a column named “Public Forum on Internal Control Building” on the EKP office system
to vigorously publicize the importance and role of internal control among all the employees and to make employees on
every position a key role in the internal control work.
4. The headquarters of the Company formed an internal control promotion working group. With the training and
guidance of the Deloitte, the group completed the supplementary internal control testing work of the “first batch
internal control building units”.
5. The headquarters of the Company formed an internal control promotion working group. With the training and
guidance with the Deloitte, the group completed the internal control system building and evaluation work of a
controlled subsidiary among the “second batch of internal control building units”.
6. From August 19th to 20th 2011, the Company held the special meeting on the correction and modification of internal
control imperfections attended by the members of the internal control work leading group, the members of the internal
control working group, the senior executives of the Company, persons-in-charge in various competent departments of
the Company, and personnel in key positions. Correction and modification were made to one by one according to
Deloitte’s proposals to the Company on major internal control imperfections. Relevant systems and procedures were
revised, established and improved.
7. The Company held the fourteenth interim meeting of the fifth board of directors on September 22nd 2011. Revised
and newly-established systems were deliberated in accordance with the requirements on the correction and
modification of internal control imperfections. The Company’s departments perfected their respective responsibilies
according to newly modified and increased systems and procedures after the correction and modification of internal
control imperfections.
At present, the implementation of the internal control in the Company is in pace with the planned progress in the
Company’s working plan on implementing international control specifications.
3.3 Conditions on the Company, its shareholders, and actual controlling personnel performing
their promise
The matters promised by relevant parties, including the listed Company, its directors, supervisors and
senior executives, shareholders holding over 5% of the Company’s shares and their actual controlling
personnel, during this report period or those extended into it are as follows.
√ Applicable □ Not applicable
Promising
Promised Matters Content of Promise Performance Condition
Person
Promise on capital restructuring None None None
Promises made in the acquisition
None None None
report and the change in equity
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
report
Promises made during major
None None None
reorganizations
As agreed in Article 5 in the
Equity Transfer Agreement
signed with the SEG Group
when the Company was listed
on the stock market, the SEG
Group agreed that the
Company and its affiliated
companies and associated
companies might use the eight
registered trademarks that the
SEG Group registered with the
Shenzhen SEG During this report period, the
State Trademark Bureau. It was
Promises made during stock issuing Group Company promised matter was
also agreed that the Company
Limited implemented as agreed.
might use the above trademark
and a logo similar to such
trademark as the Company
logo and use the above
trademark and logo or marks
similar to such trademark and
logo in the process of
operation. The Company does
not need to pay any expense to
the SEG Group for the use of
the above trademark or logo.
With respect to the issue
pointed out by the Shenzhen
Securities Regulatory Bureau
in the site inspection of the
Company in 2007 that "there
was horizontal competition
Shenzhen SEG between your company and the During this report period, the
Other promises (including added
Group Company SEG Group in the business of controlling shareholder
promises)
Limited electronics market", the followed the above promise.
Company received the written
"Commitment Letter" from the
SEG Group on September 14th
2007. The content of the letter
is as follows: "The Group and
the Shenzhen SEG Company
11
The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
Limited (hereinafter referred to
as the Shenzhen SEG) have
similar business in electronics
market in the city of Shenzhen.
The issue was caused by
historical reasons and there
were also objective background
factors in market development.
The Group hereby promises
that it will not operate
unilaterally any market of
businesses similar to those
operated by the Shenzhen SEG
in the same city in the future."
The Company has disclosed
such matter on September 18th
2007 in the China Securities
Journal, the Securities Times,
the Securities Daily, the Hong
Kong Commercial Daily, and
the CNINFO.COM.
3.4 A Warning that it is estimated that loss might occur to the accumulative net profits from
the beginning of the year to the end of the next report period or that large change might occur in
year-on-Year comparison with last year and the explanation of relevant reasons
□ Applicable √ Not applicable
3.5 Other major matters that need to be explained
3.5.1 Conditions on securities investment
□ Applicable √ Not applicable
3.5.2 Table on the activities of receiving people for investigation and research, communication
and interview during this report period
Time of Identity of people Main content of conversation
Place of reception Mode of reception
reception received and information provided
Telephone The caller asked the reason for
July 5th 2011 The Company Investor
conversation the Company’s trade suspension.
12
The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
The Company provided the
announcement on trade
suspension.
The caller asked the reason for
the Company’s trade suspension.
th
Telephone
July 7 2011 The Company Investor The Company provided the
conversation
announcement on trade
suspension.
The caller asked the reason for
the Company’s trade suspension.
th
Telephone
July 8 2011 The Company Investor The Company provided the
conversation
announcement on trade
suspension.
The caller asked the reason for
the Company’s trade suspension.
th
Telephone
July 11 2011 The Company Investor The Company provided the
conversation
announcement on trade
suspension.
The caller asked the reason for
the Company’s trade suspension.
th
Telephone
July 15 2011 The Company Investor The Company provided the
conversation
announcement on trade
suspension.
The caller asked the reason for
the Company’s trade suspension.
th
Telephone
July 18 2011 The Company Investor The Company provided the
conversation
announcement on trade
suspension.
The caller asked the reason for
the Company’s trade suspension.
th
Telephone
July 19 2011 The Company Investor The Company provided the
conversation
announcement on trade
suspension.
The caller asked the reason for
the Company’s trade suspension.
th
Telephone
July 20 2011 The Company Investor The Company provided the
conversation
announcement on trade
suspension.
The caller asked the reason for
Telephone
July 27th 2011 The Company Investor the Company’s trade suspension.
conversation
The Company provided the
13
The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
announcement on trade
suspension.
The caller asked the reason for
the Company’s trade suspension.
th
Telephone
July 28 2011 The Company Investor The Company provided the
conversation
announcement on trade
suspension.
The caller asked the reason for
the Company’s trade suspension
Telephone and the time for the resumption
July 29th 2011 The Company Investor
conversation of trade. The Company provided
the announcement on trade
suspension.
The caller asked the reason for
the Company’s trade suspension
Telephone and the time for the resumption
August 1st,2011 The Company Investor
conversation of trade. The Company provided
the announcement on trade
suspension.
The caller asked the reason for
the Company’s trade suspension
August 2nd Telephone and the time for the resumption
The Company Investor
2011 conversation of trade. The Company provided
the announcement on trade
suspension.
The person asked the reason for
the Company’s trade suspension
th
August 30 Telephone and the time for the resumption
The Company Investor
2011 conversation of trade. The Company provided
the announcement on trade
suspension.
The caller asked the reason for
the Company’s trade suspension
August Telephone and the time for the resumption
The Company Investor
31st,2011 conversation of trade. The Company provided
the announcement on trade
suspension.
The caller asked the reason for
st
September 1 Telephone the Company’s trade suspension
The Company Investor
2011 conversation and the time for the resumption
of trade. The Company provided
14
The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
the announcement on trade
suspension.
The caller asked the reason for
the Company’s trade suspension
rd
September 23 Telephone and the time for the resumption
The Company Investor
2011 conversation of trade. The Company provided
the announcement on trade
suspension.
3.6 Investment in derivatives
□ Applicable √ Not applicable
3.6.1 Positions in the investment in derivatives at the end of this report period
□ Applicable √ Not applicable
§4 Appendices
4.1 Balance Sheet
Prepared by Shenzhen SEG Company Limited Date: September 30th, 2011 Unit: Yuan
Balance at the end of the period Balance in the beginning of the year
Item Amount of the Amount of the
Consolidated Consolidated
parent company parent company
Current assets:
Cash and cash equivalents 556,073,333.77 383,091,532.95 572,818,178.75 451,763,240.33
Settlement provisions
Capital lent
Transaction finance asset
Notes receivable
Accounts receivable 19,569,184.28 587,500.00 25,022,650.83 400,000.00
Advances 126,028,828.95 54,140,738.92 25,974,587.30 1,014,030.88
Insurance receivable
Reinsurance receivable
Contract reserve of
reinsurance receivable
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
Interest receivable
Dividends receivable 6,409,870.06 5,220,484.17
Other receivables 20,241,534.03 59,060,321.01 10,859,116.83 45,689,683.40
Restituted finance asset
purchased
Inventories 1,103,166.41 4,205,886.55
Non-current asset due within
one year
Other current assets
Total current assets 723,016,047.44 503,289,962.94 638,880,420.26 504,087,438.78
Non-current assets
Granted loans and advances
Salable finance assets 721,520.87 808,297.56
Held-to-maturity securities
Long-term accounts
receivable
Long-term equity investment 131,470,345.01 349,397,844.05 141,242,734.12 322,340,233.16
Investment property 569,742,221.32 329,370,313.08 584,274,468.23 337,246,328.53
Fixed assets 57,029,922.78 21,522,474.37 58,882,067.31 22,340,255.50
Construction in process 6,822,489.97 42,750.00 7,128,010.06
Engineering material
Disposal of fixed assets
Consumable biological assets
Oil and gas assets
Intangible assets 971,123.26 362,877.45 631,364.93 486,729.42
Expense on research and
development
Goodwill 10,328,927.82 10,328,927.82
Long-term expenses to be
24,561,786.78 1,761,531.80 13,977,797.51 1,336,897.67
apportioned
Deferred income tax assets 8,967,529.97 6,376,755.45 10,118,538.12 6,376,755.45
Other non-current assets
Total non-current assets 810,615,867.78 708,834,546.20 827,392,205.66 690,127,199.73
Total assets 1,533,631,915.22 1,212,124,509.14 1,466,272,625.92 1,194,214,638.51
Current liabilities:
Short-term loans
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
Loan from central bank
Absorbing deposit and
inter-bank deposit
Capital borrowed
Transaction financial
liabilities
Notes payable
Accounts payable 10,339,844.44 2,675,468.62 14,129,256.31 2,348,122.72
Advance receipts 132,490,193.62 61,338,514.76 120,590,384.85 75,224,054.77
Repurchased financial asset
sold
Commission charge and
commission payable
Wage payable 9,775,273.06 2,328,897.68 10,264,284.67 5,907,588.47
Taxes payable 20,102,065.99 17,581,558.75 14,037,120.99 10,663,834.34
Interest payable
Dividends payable 1,532,673.03 119,803.29 1,292,320.37 153,403.29
Other Accounts payable 123,246,661.78 33,824,659.66 110,795,570.46 45,214,909.19
Reinsurance payable
Insurance contract reserve
Security trading of agency
Security sales of agency
Long-term liabilities due
within one year
Other current liabilities
Total current liabilities 297,486,711.92 117,868,902.76 271,108,937.65 139,511,912.78
Non-current liabilities:
Long-term loans
Bonds payable
Long-term accounts payable
Special accounts payable
Predicted liabilities
Deferred income tax liabilities 20,724,961.37 21,577,482.19
Other non-current liabilities
Total non-current liabilities 20,724,961.37 21,577,482.19
Total liabilities 318,211,673.29 117,868,902.76 292,686,419.84 139,511,912.78
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
Owner’s equity (or
shareholders’ equity):
Paid-in capital (or share
784,799,010.00 784,799,010.00 784,799,010.00 784,799,010.00
capital)
Capital public reserve 407,640,809.86 404,980,399.08 407,684,719.56 404,980,399.08
Less: Treasury stock
Special 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 profits -183,395,942.60 -198,436,638.37 -211,002,081.30 -237,989,519.02
Difference from foreign
currency converted in -228,928.56 -411,391.17
statements
Total of shareholders’ equity
attributable to the parent 1,111,727,784.37 1,094,255,606.38 1,083,983,092.76 1,054,702,725.73
company
Minority shareholders’
103,692,457.56 89,603,113.32
interest
Total of shareholders’ equity 1,215,420,241.93 1,094,255,606.38 1,173,586,206.08 1,054,702,725.73
Total of liabilities and
1,533,631,915.22 1,212,124,509.14 1,466,272,625.92 1,194,214,638.51
shareholders’ equity
4.2 Income Statement for this report period
Prepared by Shenzhen SEG Company Limited From July to September 2011 Unit: Yuan
Amount in this period Amount in the previous period
Item Amount of the Amount of the
Consolidated Consolidated
parent company parent company
I. Total operating income 110,290,304.31 30,854,406.05 103,795,650.70 27,114,911.97
Including: Operating income 110,290,304.31 30,854,406.05 103,795,650.70 27,114,911.97
Income gained 0.00 0.00 0.00 0.00
Insurance gained 0.00 0.00 0.00 0.00
Commission charge and
0.00 0.00 0.00 0.00
commission income
II. Total operating cost 103,110,691.62 20,116,608.42 90,879,968.70 17,769,010.71
Including: Operating cost 87,566,104.25 13,546,003.27 76,000,224.38 11,327,546.47
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
Interest expense 0.00 0.00 0.00 0.00
Commission charge and
0.00 0.00 0.00 0.00
commission expense
Cash surrender value 0.00 0.00 0.00 0.00
Net amount of expense of
0.00 0.00 0.00 0.00
compensation
Net amount of withdrawal of
0.00 0.00 0.00 0.00
insurance contract reserve
Bonus expense of guarantee
0.00 0.00 0.00 0.00
slip
Reinsurance expense 0.00 0.00 0.00 0.00
Operating and extra expenses 4,519,808.09 1,839,934.81 4,536,412.38 2,342,511.74
Sales expenses 690,250.41 0.00 -13,493.25 0.00
Administration expenses 11,242,181.71 5,992,365.52 10,677,413.13 4,739,865.40
Financial Expenses -907,652.84 -1,261,695.18 -320,587.94 -640,912.90
Losses of devaluation of assets 0.00 0.00 0.00 0.00
Plus: changing income of fair
value (Add a minus sign “-” in 0.00 0.00 0.00 0.00
the case of loss)
Investment income (Add a
minus sign “-” in the case of -675,119.72 2,514,266.17 130,670.29 760,670.29
loss)
Including: Investment income
from associated enterprises 0.00 0.00 0.00 0.00
and joint ventures
Exchange income (Add a
minus sign “-” in the case of 0.00 0.00 0.00 0.00
loss)
III. Operating profits (Add a
minus sign “-” in the case of 6,504,492.97 13,252,063.80 13,046,352.29 10,106,571.55
loss)
Plus: Non-operating income 246,071.70 17,605.24 361,060.36 88,528.68
Less: Non-operating expense 48,587.04 6,400.00 9,184.18 1,117.75
Including: Disposal loss of
0.00 0.00 0.00 0.00
non-current assets
IV. Total profits (Add a minus
6,701,977.63 13,263,269.04 13,398,228.47 10,193,982.48
sign “-” in the case of loss)
Less: Income tax 4,667,093.75 2,579,760.69 3,095,964.46 2,056,075.10
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
V. Net profits (Add a minus
2,034,883.88 10,683,508.35 10,302,264.01 8,137,907.38
sign “-” in the case of loss)
Net profits attributable to the
owner’s equity of parent 1,273,750.35 10,683,508.35 9,066,771.92 8,137,907.38
company
Minority shareholders’ gains
761,133.53 0.00 1,235,492.09 0.00
and losses
VI. Earnings per share
A. Basic earnings per share 0.0016 0.0136 0.0115 0.0104
B. Diluted earnings per share 0.0016 0.0136 0.0115 0.0104
VII. Other consolidated
75,949.26 0.00 264,493.41 0.00
income
VIII. Total amount of
2,110,833.14 10,683,508.35 10,566,757.42 8,137,907.38
consolidated income
Total amount of consolidated
income attributable to owners 1,355,402.42 10,683,508.35 9,254,228.74 8,137,907.38
of the parent company
Total amount of consolidated
income attributable to minority 755,430.72 0.00 1,312,528.68 0.00
shareholders
For the enterprise merger under the control of the same entity in the current period, the merged party
achieved before the merger net profits: RMB 0.00 Yuan.
4.3 Income Statement from the Beginning of the Year to the End of this report period
Prepared by Shenzhen SEG Company Limited From January to September 2011 Unit: Yuan
Amount in this period Amount in the previous period
Item Amount of the Amount of the
Consolidated Consolidated
parent company parent company
I. Total operating income 313,695,525.80 90,059,322.93 282,093,078.90 83,330,734.35
Including: Operating income 313,695,525.80 90,059,322.93 282,093,078.90 83,330,734.35
Income gained 0.00 0.00 0.00
Insurance gained 0.00 0.00 0.00
Commission charge and
0.00 0.00 0.00
commission income
II. Total operating cost 261,797,940.05 45,307,869.82 227,227,150.38 44,703,458.38
Including: Operating cost 227,316,490.17 32,874,333.31 191,533,671.99 30,736,038.62
Interest expense 0.00 0.00 0.00
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
Commission charge and
0.00 0.00 0.00
commission expense
Cash Surrender value 0.00 0.00 0.00
Net amount of expense of
0.00 0.00 0.00
compensation
Net amount of withdrawal of
0.00 0.00 0.00
insurance contract reserve
Bonus expense of guarantee
0.00 0.00 0.00
slip
Reinsurance expense 0.00 0.00 0.00
Operating tax and extra
12,592,630.10 5,061,247.35 11,802,215.03 5,434,123.62
expenses
Sales expenses 2,104,044.40 0.00 2,501,896.14 0.00
Administration expenses 25,557,955.78 13,923,555.34 24,214,631.34 12,174,819.60
Financial expenses -5,773,180.40 -6,551,266.18 -2,825,264.12 -3,641,523.46
Losses of devaluation of assets 0.00 0.00
Plus: Changing income of fair
value (Add a minus sign “-” in 0.00 0.00 0.00 0.00
the case of loss)
Investment income (Add a
minus sign “-” in the case of -5,227,389.11 5,527,068.78 -2,733,552.46 7,279,089.98
loss)
Including: Investment income
from associated enterprises
and joint ventures
Exchange income (Add a
minus sign “-” in the case of 0.00 0.00 0.00 0.00
loss)
III. Operating profits (Add a
minus sign “-” in the case of 46,670,196.64 50,278,521.89 52,132,376.06 45,906,365.95
loss)
Plus: Non-operating income 608,935.35 30,951.98 953,064.46 271,327.30
Less: Non-operating expense 87,447.90 11,600.00 480,938.62 329,411.84
Including: Disposal loss of
Non-current assets
IV. Total profits (Add a minus
47,191,684.09 50,297,873.87 52,604,501.90 45,848,281.41
sign “-” in the case of loss)
Less: Income tax 17,135,120.57 10,744,993.22 13,010,936.32 9,146,520.19
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
V. Net profits (Add a minus
30,056,563.52 39,552,880.65 39,593,565.58 36,701,761.22
sign “-” in the case of loss)
Net profits attributable to the
owner’s equity of parent 27,606,138.70 39,552,880.65 35,963,616.63 36,701,761.22
company
Minority shareholders’ gains
2,450,424.82 3,629,948.95 0.00
and losses
VI. Earnings per share
A. Basic earnings per share 0.0352 0.0504 0.0458 0.0468
B. Diluted earnings per share 0.0352 0.0504 0.0458 0.0468
VII. Other consolidated
116,512.33 11,005,236.190 10,632,190.670
income
VIII. Total amount of
30,173,075.85 39,552,880.65 50,598,801.77 47,333,951.890
consolidated income
Total amount of consolidated
income attributable to owners 27,744,691.61 39,552,880.65 46,869,828.37 47,333,951.890
of the parent company
Total amount of consolidated
income attributable to minority 2,428,384.24 3,728,973.40
shareholders
For the enterprise merger under the control of the same entity in the current period, the merged party
achieved before the merger net profits: RMB 0.00 Yuan.
4.4 Cash flow statement from the beginning of the year to the end of this report period
Prepared by the Shenzhen SEG Company Limited From January to September, 2011 Unit: Yuan
Amount in this period Amount in the previous period
Item Amount of the Amount of the
Consolidated Consolidated
parent company parent company
I. Cash flow arising from
operating activities:
Cash received from selling
commodities and providing 349,879,972.11 92,054,382.35 294,158,518.03 85,491,297.74
labor services
Net increase of customer
0.00 0.00 0.00 0.00
Deposit and inter-bank deposit
Net increase of loan from
0.00 0.00 0.00 0.00
central bank
Net increase of capital 0.00 0.00 0.00 0.00
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
borrowed from other financial
institution
Cash received from original
0.00 0.00 0.00 0.00
insurance contract fee
Net cash received from
0.00 0.00 0.00 0.00
reinsurance business
Insurance savings and net
0.00 0.00 0.00 0.00
increase of investment
Net increase of disposal of
0.00 0.00 0.00 0.00
transaction financial assets
Cash received from interest,
commission charge and 0.00 0.00 0.00 0.00
commission
Net increase of capital
0.00 0.00 0.00 0.00
borrowed
Net increase of returned
0.00 0.00 0.00 0.00
business capital
Write-back of tax received 0.00 0.00 0.00 0.00
Other cash received from
342,294,996.42 160,832,555.32 255,785,350.51 138,755,047.91
concerning operating activities
Subtotal of cash inflow
arising from operating 692,174,968.53 252,886,937.67 549,943,868.54 224,246,345.65
activities
Cash paid for purchasing
commodities and receiving 155,349,021.97 20,728,239.95 136,886,953.24 32,536,916.02
labor services
Net increase of customer loans
0.00 0.00 0.00 0.00
and advances
Net increase of deposit in
central bank and inter-bank 0.00 0.00 0.00 0.00
proceeds
Cash paid for original
insurance contract 0.00 0.00 0.00 0.00
compensation
Cash paid for interest,
commission charge and 0.00 0.00 0.00 0.00
commission
Cash paid for bonus of
0.00 0.00 0.00 0.00
guarantee slip
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The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
Cash paid to and for staff and
46,377,062.44 20,529,756.62 34,508,865.62 16,230,970.03
workers
Taxes paid 93,124,276.58 73,348,549.42 100,180,562.75 84,502,021.06
Other cash paid concerning
331,756,926.34 130,171,747.06 212,330,566.08 64,042,016.56
operating activities
Subtotal of cash outflow
arising from operating 626,607,287.33 244,778,293.05 483,906,947.69 197,311,923.67
activities
Net cash flow arising from
65,567,681.20 8,108,644.62 66,036,920.85 26,934,421.98
operating activities
II. Cash flow arising from
investing activities
Cash received from recovering
0.00 0.00 0.00 0.00
investment
Cash received from
4,545,000.00 14,110,072.00 4,386,402.77 14,399,045.21
investment income
Net cash received from
disposal of fixed, intangible 100,170.00 65,000.00 4,547,915.77 4,219,506.77
and other long-term assets
Net cash received from
disposal of subsidiaries and 0.00 0.00 0.00 0.00
other business units
Other cash received
0.00 0.00 0.00 0.00
concerning investing activities
Subtotal of cash inflow from
4,645,170.00 14,175,072.00 8,934,318.54 18,618,551.98
investing activities
Cash paid for purchasing
fixed, intangible and other 20,237,787.63 91,824.00 13,197,133.79 251,265.25
long-term assets
Cash paid for investment 81,000,000.00 90,830,000.00 0.00 0.00
Net increase of mortgaged
0.00 0.00 0.00 0.00
loans
Net cash received from
subsidiaries and other business 0.00 0.00 0.00 0.00
units
Other cash paid concerning
0.00 0.00 0.00
investing activities
Subtotal of cash outflow from
101,237,787.63 90,921,824.00 13,197,133.79 251,265.25
investing activities
24
The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
Net cash flow arising from
-96,592,617.63 -76,746,752.00 -4,262,815.25 18,367,286.73
investing activities
III. Cash flow arising from
financing activities
Cash received from absorbing
16,170,000.00 0.00 0.00 0.00
investment
Including: Cash received from
absorbing minority
16,170,000.00 0.00 0.00 0.00
shareholders’ investment by
subsidiaries
Cash received from loans 2,000,000.00 0.00 0.00 0.00
Cash received from issuing
0.00 0.00 0.00 0.00
bonds
Other cash received
0.00 0.00 0.00 0.00
concerning financing activities
Subtotal of cash inflow from
18,170,000.00 0.00 0.00 0.00
financing activities
Cash paid for settling debts 0.00 0.00 0.00 0.00
Cash paid for dividend and
profit distributing or interest 3,898,369.30 33,600.00 4,596,996.55 0.00
paying
Including: Dividend and profit
of minority shareholder paid 0.00 0.00 0.00 0.00
by subsidiaries
Other cash paid concerning
0.00 0.00 0.00 0.00
financing activities
Subtotal of cash outflow from
3,898,369.30 33,600.00 4,596,996.55 0.00
financing activities
Net cash flow arising from
14,271,630.70 -33,600.00 -4,596,996.55 0.00
financing activities
IV. Influence on cash or cash
equivalents due to fluctuation 8,460.75 0.00 -56,119.31 -59,398.49
in exchange rate
V. Net increase of cash and
-16,744,844.98 -68,671,707.38 57,120,989.74 45,242,310.22
cash equivalents
Plus: Balance of cash and cash
equivalents at the beginning of 572,818,178.75 451,763,240.33 485,135,270.94 375,350,393.53
the period
VI. Balance of cash and cash 556,073,333.77 383,091,532.95 542,256,260.68 420,592,703.75
25
The 2011 Third Quarterly Report of Shenzhen SEG Co., Ltd.
equivalents at the end of the
period
4.5 Auditor’s report
Auditor’s Opinion: Not audited.
26
