Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
Shenzhen SEG Co., Ltd.
2012 Q1 Report (Full-Text)
§1. Important Notes
1.1 The Board of Directors and Board of Supervisors of this Company, its directors, supervisors and senior
executives hereby confirm that there are not any false statements, misleading statements or omissions of important
information carried in this report, and shall take all responsibilities, individual and/or joint, for the reality,
accuracy and integrity of the whole contents.
1.2 The 2012 Q1 Financial Report has not been audited by CPAs.
1.3 Wang Li, in charge of the Company, Li Lifu, in charge of accounting work and Ying Huadong, in charge of the
Accounting Organization (Accounting Executive) hereby confirm that the Financial Report of the Q1 Report is
true and complete.
§2. Company Profile
2.1 Main accounting data and financial indexes:
Unit: RMB Yuan
At the end of this report
At the end of last year Change rate (%)
period
Total assets (Yuan) 1,689,019,960.75 1,673,584,777.35 0.92%
Owners' equities attributable to the
1,169,315,057.74 1,152,695,930.59 1.44%
shareholders of listed company (Yuan)
Share capital (share) 784,799,010.00 784,799,010.00 0.00%
Net assets per share attributable to the
1.4900 1.4688 1.44%
shareholders of listed company (Yuan/share)
This report period Same period of last year Change rate(%)
Total operating income (Yuan) 110,887,458.49 93,924,973.74 18.06%
Net profit attributable to the shareholders of
16,613,292.99 11,784,432.63 40.98%
listed company (Yuan)
Net cash flow arising from operating activities
11,648,372.46 6,924,255.99 68.23%
(Yuan)
Net cash flow arising from operating activities
0.0148 0.0088 68.18%
per share (Yuan/share)
Basic earnings per share (Yuan/share)
0.0212 0.0150 41.33%
Diluted earnings per share (Yuan/share) 0.0212 0.0150 41.33%
Weighted average return on equity (%) 1.43% 1.53% -0.10%
Weighted average return on equity after
1.39% 1.53% -0.14%
deducting non-recurring profit/loss (%)
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Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
Items of non-recurring profit and loss
√Applicable Not Applicable
Unit: Yuan
Amount from the beginning of the year Remarks (if
Items of non-recurring profit and loss
to the end of this report period applicable)
Government subsidies included in the current profit and loss
(excluding the government subsidies continuously received in
definite amount and quotas according to specific standards, which 100,000.00
are closely related to regular operating business and in accordance
with the provisions of national policies.)
Other non-operating income and expense excluded the
796,582.39
aforementioned business
Impact amount on equity of minority shareholders -224,145.60
Impact amount on income tax -246,008.41
Total 426,428.38 -
2.2 Total number of shareholders at the end of this report period and shares held by the top ten
shareholders with unrestricted sales conditions
Unit: share
Total numbers of shareholders at the end of
62,909
this report period (shareholder)
Particulars about the shares held by the top ten shareholders with unrestricted sales conditions
Unrestricted shares held at the end of
Full name of shareholder Type of shares
this period
Shenzhen SEG Group Co., Ltd. 237,359,666 RMB common share
Guangzhou Fodak Enterprise Group Co., Ltd. 18,880,334 RMB common share
Taifook Securities Company Limited-Account
7,980,784 Domestically listed foreign share
Client
Gong Qianhua 5,311,520 Domestically listed foreign share
Zhu Wei 4,066,739 RMB common share
Tang Lizhu 3,796,200 RMB common share
GUOTAI JUNAN
3,689,041 Domestically listed foreign share
SECURITIES(HONGKONG)LIMITED
Dalian Huaxin Trust Co., Ltd. (Beta 1
3,000,000 RMB common share
structured securities investment portfolio)
Cao Xianhua 2,702,000 RMB common share
China Merchants Securities (Hong Kong) Co.,
2,672,676 Domestically listed foreign share
Ltd.
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Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
§3. Significant Events
3.1 Particulars and explanations of material changes in main items of accounting statements and financial
indexes
√Applicable Not Applicable
I. Items of balance sheet
March 31, 2012 December 31, 2011 Difference Change rate %
Item
Inventory 1,125,044.0400 633,555.08 491,488.96 77.58%
Other current assets 304,000,000.0000 201,000,000.00 103,000,000.00 51.24%
Granted loans and advances 60,143,880.9900 3,534,300.00 56,609,580.99 1601.72%
Construction in progress - 42,750.00 -42,750.00 -100.00%
Wages payable to employees 6,837,054.8000 10,318,172.65 -3,481,117.85 -33.74%
1. Inventory: It achieved an increase of 490,000 Yuan, with a 77.58% increase over the beginning of this report period. The main
reason for the increase is Shenzhen SEG Industrial Investment Co., Ltd. (hereinafter referred to as "SEG Industrial"), a holding
subsidiary of the Company, has seen an increase in its business and hence increase in the corresponding inventory.
2. Other current assets: It achieved an increase of 103 million Yuan, with a 51.24% increase over the beginning of this report
period. The main reason for the increase is the increase in the bank financing business of the Company.
3. Granted loans and advances: It achieved an increase of 56.61 million Yuan; the reason for the increase is that Shenzhen SEG
Small Loans Co., Ltd. (hereinafter referred to as "SEG Small Loans"), a holding subsidiary of the Company, registered in
December 2011, increased its issuing of loans in this report period.
4. Construction in progress: It received a decrease of 40,000 Yuan over the beginning of this report period. The reason is that the
project of the Company was completed, and the item was transferred to fixed assets.
5. Wages payable to employees: it received a decrease of 3.48 million Yuan, with a decrease of 33.74% over the beginning of this
report period. The reason is that the Company paid the last year's wages and bonus to employees.
II. Items of Income Statement Same period of Change
This period Difference
Item last year rate %
Sales expenses 642,831.59 1,227,798.23 -584,966.64 -47.64%
Administration expenses 9,681,654.12 7,375,994.27 2,305,659.85 31.26%
Asset impairment loss 565,753.35 - 565,753.35
Investment income 4,320,493.67 -2,400,397.00 6,720,890.67
Operating profit 25,240,250.37 19,165,215.06 6,075,035.31 31.70%
Non-operating incomes 902,170.04 254,978.59 647,191.45 253.82%
Non-operating expenses 5,587.65 29,894.53 -24,306.88 -81.31%
Total profit 26,136,832.76 19,390,299.12 6,746,533.64 34.79%
Net profit 19,477,485.72 13,444,571.59 6,032,914.13 44.87%
Net profit attributable to owner's of the parent company 16,613,292.99 11,784,432.63 4,828,860.36 40.98%
Minority shareholders' profit and loss 2,864,192.73 1,660,138.96 1,204,053.77 72.53%
Other comprehensive incomes 8,762.63 -23,526.41 32,289.04
Total comprehensive incomes 19,486,248.35 13,421,045.18 6,065,203.17 45.19%
Total comprehensive incomes attributable to the
16,619,127.15 11,781,713.77 4,837,413.38 41.06%
owner's of the parent company
Total comprehensive incomes attributable to minority
2,867,121.20 1,639,331.41 1,227,789.79 74.90%
shareholders
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Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
1. Sales expenses: it received a decrease of 580,000 Yuan, 47.64% down from the same period of the last year. The major reason is
that the Company and its holding subsidiary SEG Industrial transferred 100% of the equity of Shenzhen SEG Logistics Co.,
Ltd.(hereinafter referred to as "SEG Logistics"), the financial reports of which were consolidated into the Company in this report
period. Therefore, compared with the same period of the last year, the sales expenses of SEG Logistics were reduced in this report
period.
2. Administration expenses: it achieved an increase of 2.31 million Yuan, 31.26% up from the same period of the last year. The
reason for the growth is, in 2011, four holding subsidiaries of the Company, Shenzhen SEG E-Commerce Co., Ltd. (hereinafter
referred to as "SEG E-Commerce"), Shenzhen SEG Nanjing Electronics Market Management Co., Ltd. (hereinafter referred to as
"Nanjing SEG"), Xi'an Hairong SEG Electronics Market Co., Ltd. (hereinafter referred to as "Xi'an Hairong SEG") and SEG
Small Loans increased the administration expenses of this period, while in the same period of the last year, there was only a
holding subsidiary, SEG E-Commerce under construction, and other three companies had not been established. Therefore,
compared with the same period of the last year, the administration expenses of aforementioned holding subsidiaries increased.
3. Asset impairment loss: it achieved an increase of 570,000 Yuan in this item. The main reason is that SEG Small Loans, a
holding subsidiary of the Company, made a loan loss reserve at 1% of the amount of loan receivable at the end of this quarter in
accordance with the Guidance for the Reserve of Bank Loan Loss issued by People's Bank of China. Compared with the same
period of the last year, the SEG Small Loans had not been established, and the Company had no loan business.
4. Investment income: it achieved an increase of 6.72 million Yuan over the same period of last year. The main reason for increase
is that: a) Shenzhen SEG Samsung Glass Co., Ltd., whose 22.45% equity is held by the Company achieved a profit of 7.08 million
Yuan in this report period, and an increase of 1.59 million Yuan in investment income of the Company. However, in the same
period of last year, this company received a deficit of 13.37 million Yuan, and a decrease of 3 million Yuan in investment income.
b) The Company received 2.29 million Yuan in entrusted financing business in this period, while this business did not start in the
same period of last year.
5. Non-operating incomes: it achieved an increase of 0.65 million Yuan, with a 253.82% increase over the same period of last year
in this item. The reason for increase is that: a) Shenzhen SEG Electronics Market Management Co., Ltd and Suzhou SEG
Electronics Market Management had transferred their historical account payable of 740,000 Yuan to this item. b) In this report
period, Changsha SEG Development Co., Ltd. obtained a government support fund of 100,000 Yuan.
6. Total profit: it achieved an increase of 6.75 million Yuan, with a 34.79% increase over the same period of last year. For major
reason, see Item 4.
7. Net profit: it achieved an increase of 6.03 million Yuan, with a 44.87% increase over the same period of last year. For major
reason, see Item 4.
8. Total consolidated incomes belonging to the owner's of the parent company: it achieved an increase of 4.83 million Yuan, with a
40.98% increase over the same period of last year. For major reason, see Item 4.
9. Minority shareholders' profit and loss: it achieved an increase of 1.2 million Yuan, with a 72.53% increase over the same period
of last year. The main reason is that, three holding subsidiaries, Nanjing SEG, Xi'an Hairong SEG and SEG Small Loans had
gained a net profit of 1.92 million Yuan in this report period, and had an increase of 0.92 million Yuan in minority shareholder's
profit and loss in the current period; while in the same period of last year, the aforementioned three companies had not been
established.
Other consolidated incomes: it achieved an increase of 30,000 Yuan. The reason is that in this report period, the stock price of
Youhao Group, whose equity is held by Shenzhen SEG Baohua Enterprise Development Co., Ltd., increased at the end of
reporting period from the beginning of the period; while in the same period of last year, the stock price decreased at the end of
reporting period from the beginning. 11. Total consolidated incomes: it achieved an increase of 6.07 million Yuan, with a 45.19
increase over the same period of last year. For major reasons, see Item 4.
12. Total consolidated incomes attributable to the owner's of the parent company: it achieved an increase of 4.84 million Yuan,
with a 41.06% increase over the same period of last year. For major reasons, see Item 4.
13. Total consolidated incomes attributable to minority shareholders: it achieved an increase of 1.23 million Yuan, with a 74.90%
increase over the same period of last year. For major reasons, see Item 9.
III Items of cash flow statement In this report Same period of the Balance Change rate %
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Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
Item period last year
Cash received from interest, charges and
3,938,358.93 - 3,938,358.93
commission
Other cash received from operating
87,007,425.77 70,673,467.08 81.23%
activities 157,680,892.85
Cash paid to/for employees 12,822,132.59 4,953,607.73 38.63%
17,775,740.32
Cash received from disposal of investment -
428,960,000.00 428,960,000.00
Cash received from returns on investments 2,288,189.36 - 2,288,189.36
Net cash received from disposal of fixed
assets, intangible assets and other long-term - 33,170.00 -33,170.00 -100.00%
assets
Cash paid for acquiring fixed assets,
1,726,165.00 3,756,711.81 -2,030,546.81 -54.05%
intangible assets and other long-term assets
Cash paid for investment -
571,960,000.00 571,960,000.00
Cash received from investors - 14,700,000.00 -100.00%
-14,700,000.00
1. Cash received from interest, charges and commission: it achieved an increase of 3.94 million Yuan in this item over the same
period of last year; the main reason for the increase is that SEG Small loans, the holding subsidiary of the Company which was
established in December 2011, added the amount of this item in this report period.
2. Other cash received from operating activities: it achieved an increase of 70.67 million Yuan, with an 81.23% increase over the
same period of last year. The reason for increase is that: a) the united cashier business of the Company in electronics markets
increased compared with the same period of last year, and the collection of customers’ payment increased correspondingly; b) the
three holding subsidiaries of the Company-Nanjing SEG, Xi’an Hairong SEG and SEG Small Loans were founded in 2011, who
contributed to the increase of 49.36 million Yuan of this item in this report period.
3. Cash paid to/for employees: it achieved an increase of 4.95 million Yuan, with a 38.63% increase over the same period of last
year. The major reason for the increase is that the number of employees in the Company and its holding subsidiaries increased in
this report period.
4. Cash received from disposal of investment: it achieved an increase of 428.96 million Yuan over the same period of last year. In
this report period, this item was mainly the entrusted financial capital returned after the maturity date; while in the same period of
last year, the entrusted financing business had not started yet.
5. Cash received from returns on investments: it achieved an increase of 2.29 million Yuan over the same period of last year. In
this report period, the major part of this item had been the income received from the entrusted financing business; while in the
same period of last year, the entrusted financing business had not started yet.
6. Net cash received from disposal of fixed assets, intangible assets and other long-term assets: it had a decrease of 30,000 Yuan
over the same period of last year. The main reason for the decrease is that the Company did not dispose of the fixed assets,
intangible assets and other long-term assets.
7. Cash paid fwith acquiring fixed assets, intangible assets and other long-term assets: it had a decrease of 2.03 million Yuan, with
a 54.05% increase over the same period of last year. The major reason for decrease is that SEG E-Commerce was under
construction in the same period of last year, and there was a large expense for purchasing fixed assets.
8. Cash paid for investment: it had a decrease of 571.96 Yuan over the same period of last year. In this report period, the major part
of this item had been the capital paid for the entrusted financing business; while in the same period of last year, the entrusted
financing business had not started yet.
9. Cash received from investors: it had a decrease of 14.70 million Yuan over the same period of last year. The main reason for the
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Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
decrease is that the company established a new holding subsidiary-SEG E-Commerce in the same period of last year, which
absorbed investing capital from shareholders.
3.2 Progress of significant events, their influences, and analysis and explanation of their solutions
3.2.1 Qualified opinion
Applicable √Not applicable
3.2.2 Particulars about fund offered to controlling shareholders or associated parties and external
guarantees which are against regulations
Applicable √Not applicable
3.2.3 Particulars about signing and implementing key contracts in daily operation
Applicable √Not applicable
3.2.4 Others
√Applicable Not applicable
I. Intercompany transactions related to daily operations
On March 23, 2012, the 8th Meeting of the 5th Board of Directors approved that, in 2012, in order to meet the needs of developing
business in the electronics market the Company shall lease part of the eight floor of SEG Plaza estate from its controlling
shareholder, SEG Group, as the warehouse for the Company's business tenants. During the lease term, the Company should pay
rent and property management fee to SEG Group. With related directors avoided in the voting, the Board of Directors agreed that,
for 2012, the Company can have inter-company transactions on estate lease with SEG Group based on the market fair value within
the limit of 1,000,000.00 RMB.
(For details, see the Notice on Resolution of the 8th Meeting of the 5th Board of Directors of Shenzhen SEG Group Co., Ltd. and
the Notice on Estimated Daily Operational Inter-company Transactions 2012 of Shenzhen SEG Group Co., Ltd. disclosed on
China Securities, Securities Times, Securities Daily, Hong Kong Commercial Daily, and at http:// www.cninfo.com.cn on March
27, 2012.)
During this report period, the Company had paid 129,000.00 RMB in total for rent and property management fee to SEG Group.
II. Litigation issues
Guangzhou Jiajie Technology Co., Ltd. (hereinafter referred to as "Guangzhou Jiajie") signed a Contract of Purchase with
Company-controlled SEG Industrial on June 25, 2010, prescribing that Guangzhou Jiajie purchases SYBASE software from SEG
Group for external sales.
Due to the discrepancy of the descriptions about payment conditions in the Contract of Purchases, the two parties had disputes on
payment.
The payment conditions in the Contract of Purchase consist of two optional clauses. The first clause is "After the goods arriving
the delivery place and passing the power-on acceptance check, the seller shall provide the full VAT invoice to the buyer and the
buyer shall make full payment within 60 days, that is, before August 30, 2010". The second clause is "The seller shall provide the
full VAT invoice to the buyer, and the buyer shall make full payment within 7 days after it received full payment from its users".
Both of the two clauses in the Contract of Purchase held by SEG Industrial are selected, while only the second clause in the
Contract of Purchase held by Guangzhou Jiajie is selected. Guangzhou Jiajie sells the SYBASE software to Guangzhou Yushi
Information Technology Co., Ltd. (hereinafter referred to as Guangzhou Yushi), which then sells to the end users.
Since Guangzhou Yushi did not pay Guangzhou Jiajie, by now Guangzhou Jiajie had sued Guangzhou Yushi. However, the legal
representative of Guangzhou Yushi had immigrated outside of China.
Based on the analysis of the Contract of Purchase held by Guangzhou Jiajie, Guangzhou Jiajie shall make full payment upon
receiving the payment from Guangzhou Yushi. According to lawyer's analysis of the current situation, it is not likely to collect the
payment. The Contract of Purchase indicates that the payment amount is 3,052,571.00 RMB. At the end of 2010, the provision for
bad debts is booked at 2,747,313.90 RMB, 90% of the full payment.
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Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
The Company had instituted a court action to solve the previous disputes. The court opened a session on December 28, 2011 and
made the first trial judgment on February 14, 2012.
According to the court verdict, the plaintiff, SEG Industrial, won the case and the defendant, Guangzhou Jiajie should make the
payment of 3,052,571.00 RMB to SEG Industrial. The court rejected other claims of the plaintiff.
Guangzhou Jiajie appealed to the higher court against this court verdict. By now the higher court has accepted Guangzhou Jiajie's
appeal. The opening day of second trial is not yet decided.
III. Development on the establishment of internal control regulations during this report period
1.On March 23, 2012, the 8th Meeting of the 5th Board of Directors approved the Proposal of Adding Contents to the
Implementation Work Program of Internal Control Regulations of SEG Co., Ltd., and modified the Implementation Work Program
of Internal Control Regulations of SEG Co., Ltd. (hereinafter referred to as Implementation Work Program) which was disclosed
at http:// www.cninfo.com.cn on April 30, 2011. The modification includes the Shenzhen SEG Electronic Market Management
Co., Ltd. and the newly established subsidiary company in 2011, Shenzhen SEG Nanjing Electronic Market Management Co.,
Ltd. into the "Second Group of Major Units of Internal Control Establishment", as well as sets the Third Group of Major Units of
Internal Control Establishment. The detailed modification and additional contents are as follows.
In the Implementation Work Program, Chapter Three "Plan of Internal Control Establishment", Section Six "Second group of the
major units of internal control establishment includes Xi'an SEG Electronic Market Co., Ltd., Suzhou SEG Electronic Market
Management Co., Ltd., and Changsha SEG Developing Co., Ltd. The internal control establishment work will be launched on
January 1, 2012 and finished before March 31, 2012" is changed to "Second group of the major units of internal control
establishment includes Xi'an SEG Electronic Market Co., Ltd., Suzhou SEG Electronic Market Management Co., Ltd., Changsha
SEG Developing Co., Ltd., Shenzhen SEG Electronic Market Management Co., Ltd., and Shenzhen SEG Nanjing Electronic
Market Management Co., Ltd. The internal control establishment work will be launched on January 1, 2012 and finished before
June 30, 2012".
The following contents are added after Section Six: "7. Third group of the major units of internal control establishment includes
Shenzhen SEG Small Loan Co., Ltd., Xi'an Hairong SEG Electronic Market Co., Ltd., and Shenzhen Mellow Orange Hotel
Management Co., Ltd. The internal control establishment work will be launched on March 10, 2012 and finished before June 30,
2012". Other contents remain unchanged.
The issues above had been disclosed on China Securities, Securities Times, Securities Daily, Hong Kong Commercial Daily, and
at http:// www.cninfo.com.cn on March 27, 2012.
2. The Company released the list of units with internal control defects in the second group. The rectification work is in progress.
3. Deloitte & Touche Tohmatsu CPA Ltd. (Shenzhen Branch) has started work of the "Internal Control Project Plan and Process
Design", "Internal Control System Establishment", and "Internal Control System Evaluation" stages for SEG Small Loan Co., Ltd.
At the end of this report period, the audition of SEG Small Loan Co., Ltd's internal control documentation is still in progress.
4. After receiving the internal control promotion trainings, Xi'an Hairong SEG Electronic Market Co., Ltd., and Shenzhen Mellow
Orange Hotel Management Co., Ltd. started their internal control system establishment and the internal control evaluation work.
At the end of this report period, the audition of internal control documentation of these two companies is still in progress.
Till the disclosure of this report, the Company's internal control work is progressing as schedules in the Implementation Work
Program.
IV. On February 28, 2011, the Company received the notice from the biggest shareholder of the Company, because the biggest
shareholder of the Company was planning important events, the shares of the Company were suspended from March 1, 2011 in
order to prevent share price from abnormal fluctuation and to protect the interests of all the investors, and would be resumption of
trading after relevant announcement being disclosed. So far the shares of the Company are still suspended.
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Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
3.3 Implementation of commitments by the Company, shareholders and actual controllers
The table below contains commitments made by related parties, including the listed Company, directors, supervisors, senior
executives, shareholders holding over 5% of the Company's shares and actual controllers in this report period or those commitments
of which the implementation extended to this report period:
√ Applicable Not Applicable
Commitment
Commitments Content of commitments Implementation
by
Commitments for Share
Not Applicable None None
Merger Reform
Commitments made in
Acquisition Reports or
Not Applicable None None
Reports on Change in
Interests
Commitments made in
significant assets Not Applicable None None
restructuring
As agreed in the Article 5 of the Equity Transfer Agreement
signed with the SEG Group when the Company was listed
on the stock market, the SEG Group permits the Company,
as well as its subsidiaries and affiliated companies to use the In this report
Shenzhen 8 registered trademarks that SEG Group presently registers period, this
Commitment made in
Electronics at the State Trademark Bureau; it also permits the Company commitment was
issuing
Group Co., Ltd. to take the aforesaid trademarks and symbols that are similar still implemented
to these marks, as company logos and in use during the as agreed.
operation process; the Company doesn’t have to pay SEG
Group any fee for the use of the aforesaid trademarks or
symbols.
With respect to the issue pointed out by the Shenzhen
Securities Regulatory Bureau in 2007 at the spot
investigation of the Company, that "the Company and SEG
group is faced horizontal competition among suppliers in the
electronics market business”, the Company received a
commitment letter from SEG Group on September 14, 2007, Controlling
with the content as follows: Our Group and the Shenzhen shareholders
Other commitments Shenzhen
SEG Co., Ltd. (hereinafter referred to as Shenzhen SEG) implemented the
(including additional Electronics
have similar business in electronics market of Shenzhen. abovementioned
commitments) Group Co., Ltd.
The issue was caused by historical reasons and had objective commitment in
market developing background. Our Group hereby promises this report period.
that we will not operate separate business similar to that of
Shenzhen SEG has in the same city in the future. The
Company disclosed this matter on September 18, 2007 in
Securities Times, China Securities Journal, Hong Kong Wen
Wei Po and the Cninfo. Website.
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Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
3.4 Estimation and explanations: the accumulative net profit from the beginning of the year to the end of next report period
might turn to be deficit or have significant change compared with the same period of the last year
Applicable √ Not Applicable
3.5 Other significant events
3.5.1 Status of security investment
Applicable √ Not Applicable
3.5.2 Activities on receiving research, communication and interview during this report period
Type of received The received Contents discussed and materials
Time Place Mode
parties parties supplied
The reasons for trade suspension of
the Company and the time to
Telephone
January 8, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
January 9, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
January 10, Telephone
The Company Individual Investor resume the trade were inquired. The
2012 communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
February 1, Telephone
The Company Individual Investor resume the trade were inquired. The
2012 communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
February 2, Telephone
The Company Individual Investor resume the trade were inquired. The
2012 communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
February 3, Telephone
The Company Individual Investor resume the trade were inquired. The
2012 communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
February 7, Telephone
The Company Individual Investor resume the trade were inquired. The
2012 communication
Company gave an announcement
on the trade suspension.
February 8, The Company Telephone Individual Investor The reasons for trade suspension of
9
Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
Type of received The received Contents discussed and materials
Time Place Mode
parties parties supplied
2012 communication the Company and the time to
resume the trade were inquired. The
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
February 9, Telephone
The Company Individual Investor resume the trade were inquired. The
2012 communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
February 13, Telephone
The Company Individual Investor resume the trade were inquired. The
2012 communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
February 16, Telephone
The Company Individual Investor resume the trade were inquired. The
2012 communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
February 17, Telephone
The Company Individual Investor resume the trade were inquired. The
2012 communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
February 19, Telephone
The Company Individual Investor resume the trade were inquired. The
2012 communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
February 21, Telephone
The Company Individual Investor resume the trade were inquired. The
2012 communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
February 22, Telephone
The Company Individual Investor resume the trade were inquired. The
2012 communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
February 23, Telephone
The Company Individual Investor resume the trade were inquired. The
2012 communication
Company gave an announcement
on the trade suspension.
February 24, The Company Telephone Individual Investor The reasons for trade suspension of
10
Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
Type of received The received Contents discussed and materials
Time Place Mode
parties parties supplied
2012 communication the Company and the time to
resume the trade were inquired. The
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
February 27, Telephone
The Company Individual Investor resume the trade were inquired. The
2012 communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
February 28, Telephone
The Company Individual Investor resume the trade were inquired. The
2012 communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
February 29, Telephone
The Company Individual Investor resume the trade were inquired. The
2012 communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
March 1, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
March 2, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
March 5, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
March 6, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
March 7, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
March 8, 2012 The Company Written inquiry Individual Investor The reasons for trade suspension of
11
Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
Type of received The received Contents discussed and materials
Time Place Mode
parties parties supplied
the Company and the time to
resume the trade were inquired. The
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
March 9, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
March 12, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
March 13, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
March 14, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
March 15, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
March 19, 2012 The Company Written inquiry Individual Investor resume the trade were inquired. The
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
March 20, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
March 21, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
March 22, 2012 The Company Telephone Individual Investor The reasons for trade suspension of
12
Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
Type of received The received Contents discussed and materials
Time Place Mode
parties parties supplied
communication the Company and the time to
resume the trade were inquired. The
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
March 26, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
March 27, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
March 28, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
March 29, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
The reasons for trade suspension of
the Company and the time to
Telephone
March 30, 2012 The Company Individual Investor resume the trade were inquired. The
communication
Company gave an announcement
on the trade suspension.
3.6 Status of derivatives investment
Applicable √ Not Applicable
3.6.1 The holding status of derivatives investment at the end of this report period
Applicable √ Not Applicable
4 Appendix
4.1 Balance Sheet
Prepared by Shenzhen SEG Co., Ltd. March 31, 2012 Unit: RMB Yuan
Balance at period-end Balance at year-beginning
Items
Consolidated Parent Company Consolidated Parent Company
Current assets:
13
Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
Balance at period-end Balance at year-beginning
Items
Consolidated Parent Company Consolidated Parent Company
Monetary fund 513,650,047.32 380,769,254.41 644,439,198.78 510,486,998.56
Settlement provisions
Capital lent
Transactional finance assets
Notes receivable
Accounts receivable 8,561,796.15 400,000.00 10,372,667.62 360,000.00
Accounts paid in advance 32,326,921.24 35,295.00 33,776,814.71 35,295.00
Insurance receivable
Reinsurance accounts receivable
Contract reserves of reinsurance receivable
Interests receivable
Dividends receivable 426,516.21 426,516.21 405,190.40
Other receivables 14,951,628.53 62,089,791.00 21,010,718.77 64,833,774.55
Restituted financial assets purchased 0.00
Inventory 1,125,044.04 633,555.08 0.00
Non-current assets due within one year 0.00 0.00
Other current assets 304,000,000.00 174,000,000.00 201,000,000.00 36,000,000.00
Total current assets 875,041,953.49 617,294,340.41 911,659,471.17 612,121,258.51
Non-current assets:
Granted loans and advances 60,143,880.99 3,534,300.00
Financial assets available for sales 598,941.21 587,411.44
Held-to-maturity investment
Long-term accounts receivable
Long-term equity investment 134,440,308.90 343,407,310.35 132,408,004.59 341,635,503.63
Investment property 514,152,692.41 324,117,320.10 518,939,370.27 326,741,292.61
Fixed assets 44,887,586.10 21,022,192.06 45,927,045.74 21,203,518.79
Construction in progress 42,750.00 42,750.00
Engineering materials
Disposal of fixed assets
Productive biological assets
Oil and gas assets
Intangible assets 553,881.05 322,596.72 561,441.87 321,593.46
Expenses on research and development
Goodwill 10,328,927.82 10,328,927.82
Long-term expenses to be apportioned 39,101,609.50 2,236,012.45 39,825,875.17 1,638,270.44
Deferred income tax assets 9,770,179.28 6,376,755.45 9,770,179.28 6,658,082.67
Other non-current assets
Total non-current assets 813,978,007.26 697,482,187.13 761,925,306.18 698,241,011.60
Total assets 1,689,019,960.75 1,314,776,527.54 1,673,584,777.35 1,310,362,270.11
Current liabilities:
Short-term loans
Loans from central bank
Absorbing deposits and inter-bank deposits
14
Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
Balance at period-end Balance at year-beginning
Items
Consolidated Parent Company Consolidated Parent Company
Capital borrowed
Transactional financial liabilities
Notes payable
Accounts payable 10,182,535.97 2,503,930.62 13,047,530.24 2,423,946.62
Accounts received in advance 149,120,174.67 62,905,891.10 158,171,642.48 81,070,594.02
Financial assets sold for repurchase
Charges and commission payable
Wages payable 6,837,054.80 3,360,933.16 10,318,172.65 5,107,972.59
Taxes payable 41,221,534.55 36,635,021.91 36,930,773.40 34,275,065.86
Interests payable
Dividends payable 1,466,295.43 119,803.29 1,466,295.43 119,803.29
Other accounts payable 118,103,295.84 48,772,774.91 110,869,162.89 39,829,376.42
Reinsurance accounts payable
Insurance contract reserve
Securities trading by agency
Securities sales by agency
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 326,930,891.26 154,298,354.99 330,803,577.09 162,826,758.80
Non-current liabilities:
Long-term loans
Bonds payable
Long-term accounts payable
Special accounts payable
Projected liabilities
Deferred income tax liabilities 20,242,134.58 20,420,513.70 0.00
Other non-current liabilities 0.00 0.00
Total non-current liabilities 20,242,134.58 20,420,513.70 0.00
Total liabilities 347,173,025.84 154,298,354.99 351,224,090.79 162,826,758.80
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 406,996,287.13 404,980,399.08 406,990,452.97 404,980,399.08
Minus: Inventory shares
Reasonable reserve
Surplus public reserve 102,912,835.67 102,912,835.67 102,912,835.67 102,912,835.67
Provisions for general risks
Retained profits -125,393,075.06 -132,214,072.20 -142,006,368.05 -145,156,733.44
Balance difference of foreign currency
translation
Total equity attributable to owners of parent
1,169,315,057.74 1,160,478,172.55 1,152,695,930.59 1,147,535,511.31
company
Minority shareholders' interests 172,531,877.17 169,664,755.97
Total owner’s equity 1,341,846,934.91 1,160,478,172.55 1,322,360,686.56 1,147,535,511.31
15
Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
Balance at period-end Balance at year-beginning
Items
Consolidated Parent Company Consolidated Parent Company
Total liabilities and owner’s equity 1,689,019,960.75 1,314,776,527.54 1,673,584,777.35 1,310,362,270.11
4.2 Income Statement
Prepared by Shenzhen SEG Co., Ltd. January-March 2012 Unit: RMB Yuan
Amount of this period Amount of last period
Items
Consolidated Parent Company Consolidated Parent Company
110,887,458.490
I. Total operating income 30,848,447.030 93,924,973.74 28,056,358.04
0
110,887,458.490
Including: Operating income 30,848,447.03 93,924,973.74 28,056,358.04
0
Interest income
Insurance gained
Charges and commission income
II. Total operating costs 89,967,701.7900 18,251,902.990 72,359,361.68 12,309,524.02
Including: Operating costs 76,515,413.5000 13,835,506.690 62,195,369.40 9,685,040.95
Interest expenses
Charges and commission expenses
Cash surrender value
Net expenses on compensation
Net amount of withdrawal of insurance
contract reserve
Policy dividend expenses
Reinsurance expenses
Operating tax and surcharges 5,020,046.7200 2,037,779.520 3,930,067.25 1,545,634.39
Sales expenses 642,831.5900 1,227,798.23
Administration expenses 9,681,654.1200 4,433,198.770 7,375,994.27 3,718,391.55
Financial expenses -2,457,997.4900 -2,054,581.9900 -2,369,867.47 -2,639,542.87
Asset impairment loss 565,753.35
Plus: Income from fair value change (Loss is
listed with “-”)
Investment income (Loss is listed with “-”) 4,320,493.6700 3,986,937.500 -2,400,397.00 -2,400,397.00
Including: Investment income from affiliated
company and joint venture
Exchange income (Loss is listed with “-”)
III. Operating profits (Loss is listed with “-”) 25,240,250.3700 16,583,481.540 19,165,215.06 13,346,437.02
Plus: Non-operating income 902,170.0400 254,978.59 4,570.00
Minus: Non-operating expenses 5,587.6500 4,034.650 29,894.53
Including: Disposal loss of non-current assets
IV. Total operating profits (Loss is listed with
26,136,832.7600 16,579,446.89 19,390,299.12 13,351,007.02
“-”)
Minus: Income tax expenses 6,659,347.0400 3,636,785.650 5,945,727.53 3,780,336.96
V. Net profits (Loss is listed with “-”) 19,477,485.7200 12,942,661.24 13,444,571.59 9,570,670.06
Net profits attributable to owners of parent 16,613,292.9900 12,942,661.2400 11,784,432.63 9,570,670.06
16
Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
Amount of this period Amount of last period
Items
Consolidated Parent Company Consolidated Parent Company
company
Minority shareholders’ gains and losses 2,864,192.7300 1,660,138.96
VI. Earnings per share:
i. Basic earnings per share 0.0212 0.0165 0.0150 0.0122
ii. Diluted earnings per share 0.0212 0.0165 0.0150 0.0122
VII. Other consolidated income 8,762.6300 -23,526.41
VIII. Total consolidated income 19,486,248.3500 12,942,661.240 13,421,045.18 9,570,670.06
Total consolidated income attributable to
16,619,127.1500 12,942,661.240 11,781,713.77 9,570,670.06
owners of parent company
Total consolidated income attributable to
2,867,121.2000 1,639,331.41 0.000
minority shareholders
If a business merger under the same controlling entity occurs in this period, the net profits of the merged party before the merger is
zero.
4.3 Cash Flow Statement
Prepared by Shenzhen SEG Co., Ltd. January-March 2012 Unit: RMB Yuan
Amount of this period Amount of last period
Items
Consolidated Parent Company Consolidated Parent Company
I. Cash flows arising from operating
activities:
Cash received from commodity selling and
108,074,162.75 21,799,176.11 86,765,932.99 9,543,154.46
labor service providing
Net increase of customer deposit and
0.00 0.00 0.00 0.00
interbank deposit
Net increase of loan from central bank 0.00 0.00 0.00 0.00
Net increase of capital borrowed from other
0.00 0.00 0.00 0.00
financial institution
Cash received from premium of original
0.00 0.00 0.00 0.00
insurance contract
Net cash received from reinsurance business 0.00 0.00 0.00 0.00
Net increase of insured savings and
0.00 0.00 0.00 0.00
investment
Net increase of disposal of trading financial
0.00 0.00 0.00 0.00
assets
Cash received from interests, charges and
3,938,358.93 0.00 0.00 0.00
commission
Net increase of capital borrowed 0.00 0.00 0.00 0.00
Net increase in repurchase 0.00 0.00 0.00 0.00
Tax refunds received 0.00 0.00 0.00 0.00
Other cash received relating to operating
157,680,892.85 44,572,118.95 87,007,425.77 48,117,726.16
activities
Sub-total of cash inflow arising from
269,693,414.53 66,371,295.06 173,773,358.76 57,660,880.62
operating activities
Cash paid for commodities and labor services 50,792,464.15 7,452,647.53 39,427,879.70 3,603,615.14
17
Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
Amount of this period Amount of last period
Items
Consolidated Parent Company Consolidated Parent Company
Net increase of customer loans and advances 57,173,834.33 0.00 0.00 0.00
Net increase of central bank and interbank
0.00 0.00 0.00 0.00
deposits
Cash paid for compensation of original
0.00 0.00 0.00 0.00
insurance contract
Cash paid for interests, charges and
0.00 0.00 0.00 0.00
commission
Cash paid for policy dividend 0.00 0.00 0.00 0.00
Cash paid to/for employees 17,775,740.32 7,624,791.73 12,822,132.59 5,582,544.84
Taxes paid 22,242,750.05 16,206,573.15 24,704,882.13 19,323,508.03
Other cash paid relating to operating
110,060,253.22 28,115,676.71 89,894,208.35 36,170,897.55
activities
Sub-total of cash outflow arising from
258,045,042.07 59,399,689.12 166,849,102.77 64,680,565.56
operating activities
Net cash flows arising from operating
11,648,372.46 6,971,605.94 6,924,255.99 -7,019,684.94
activities
II. Cash flows arising from investing
activities:
Cash received from recovering investment 428,960,000.00 381,960,000.00 0.00 0.00
Cash received from investment income 2,288,189.36 1,954,633.19 0.00 0.00
Net cash received from disposal of fixed,
0.00 0.00 33,170.00 0.00
intangible and other long-term assets
Net cash received from disposal of
0.00 0.00 0.00 0.00
subsidiaries and other business units
Other cash received relating to investing
0.00 0.00 0.00 0.00
activities
Sub-total of cash inflow arising from
431,248,189.36 383,914,633.19 33,170.00 0.00
investing activities
Net cash paid for acquiring fixed, intangible
1,726,165.00 644,435.00 3,756,711.81 36,320.00
and other long-term assets
Cash paid for investment 571,960,000.00 519,960,000.00 0.00 15,300,000.00
Net increase of mortgaged loans 0.00 0.00 0.00 0.00
Net cash paid for acquiring subsidiaries and
0.00 0.00 0.00 0.00
other business units
Other cash paid relating to operating
0.00 0.00 0.00 0.00
activities
Sub-total of cash outflow arising from
573,686,165.00 520,604,435.00 3,756,711.81 15,336,320.00
investing activities
Net cash flows arising from investing
-142,437,975.64 -136,689,801.81 -3,723,541.81 -15,336,320.00
activities
III. Cash flows arising from financing
activities:
Cash received from investors 0.00 0.00 14,700,000.00 0.00
Including: Cash received from minority 0.00 0.00 14,700,000.00 0.00
18
Shenzhen SEG Co., Ltd. 2012 Q1 Report (Full-Text)
Amount of this period Amount of last period
Items
Consolidated Parent Company Consolidated Parent Company
shareholders by subsidiaries
Cash received from loans 0.00 0.00 0.00 0.00
Cash received from issuing bonds 0.00 0.00 0.00 0.00
Other cash received relating to financing
0.00 0.00 0.00 0.00
activities
Sub-total of cash inflow arising from
0.00 0.00 14,700,000.00 0.00
financing activities
Cash paid for repaying debts 0.00 0.00 0.00 0.00
Cash paid for dividend and profits
0.00 0.00 2,581.72 0.00
distributing or interests paying
Including: Dividends and profits of minority
0.00 0.00 0.00 0.00
shareholders paid by subsidiaries
Other cash paid relating to financing
0.00 0.00 0.00 0.00
activities
Sub-total of cash outflow arising from
0.00 0.00 2,581.72 0.00
financing activities
Net cash flows arising from financing
0.00 0.00 14,697,418.28 0.00
activities
IV. Impact of exchange rate fluctuation on
451.72 451.72 1,211.38 0.00
cash and cash equivalents
V. Net increase of cash and cash equivalents -130,789,151.46 -129,717,744.15 17,899,343.84 -22,356,004.94
Plus: Balance of cash and cash equivalents at
644,439,198.78 510,486,998.56 572,818,178.75 451,763,240.33
the beginning of the period
VI. Balance of cash and cash equivalents at
513,650,047.32 380,769,254.41 590,717,522.59 429,407,235.39
the end of the period
4.4 Auditor’s Report
Auditor’s opinion: Un-audited
19
