2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
Shenzhen SEG Co., Ltd.
2012 Semi-annual Report
I. Important Notice
The Board of Directors, the Board of Supervisors, Directors, Supervisors and Senior Executives of Shenzhen SEG Co., Ltd. hereby
guarantee that no false or misleading statement or major omission was made to the materials in this report and that they will assume
all the responsibilities, individually and jointly, for the trueness, accuracy and completeness of the report.
All the directors have attended this board meeting reviewing the semi-annual report.
This semi-annual financial report of the Company has not been audited by any accounting firms.
Chairman of the Board Wang Li, the Chief Financial Officer Li Lifu and the responsible person of the accounting institution
(Accountant in charge) Ying Huadong hereby declare that the Financial Statements enclosed in this semi-annual report are true and
complete.
Definitions
Definition Refers to Description
This Company, the Company Refers to Shenzhen SEG Co., Ltd.
SEG Group Refers to Shenzhen SEG Group Co., Ltd.
ST Samsung Refers to Shenzhen SEG Samsung Co., Ltd.
SEG Logistics Refers to Shenzhen SEG Logistics Co., Ltd.
SEG Baohua Refers to Shenzhen SEG Baohua Enterprise Development Co., Ltd.
Xi'an SEG Refers to Xi'an SEG Electronics Market Co., Ltd.
Suzhou SEG Refers to Suzhou SEG Electronics Market Co., Ltd.
Xi'an Hairong SEG Refers to Xi'an Hairong SEG Electronics Market Co., Ltd.
Nanjing SEG Refers to Shenzhen SEG Electronics Market Management Co., Ltd.
Shanghai SEG Refers to Shanghai SEG Electronics Market Co., Ltd.
Formerly Changsha Xinxing Development Co., Ltd., renamed as
Changsha SEG Refers to
Changsha SEG Development Co., Ltd. on March 18, 2010
Changsha Branch of Shenzhen Mellow Orange Business Hotel
Changsha Mellow Orange Hotel Refers to
Management Co., Ltd.
Longgang SEG Refers to Shenzhen SEG Electronics Market Management Co., Ltd.
SEG Industry Refers to Shenzhen SEG Industrial Investment Co., Ltd.
SEG E-Commerce Refers to Shenzhen SEG E-Commerce Co., Ltd.
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
Definition Refers to Description
SEG Credit Refers to Shenzhen SEG Credit Co., Ltd.
SEG Navigations Refers to Shenzhen SEG GPS Scientific Navigations Co., Ltd.
Shenzhen SEG Industrial Investment Co., Ltd., whose 91.79% shares are
held by the Company, opened the Buy-it Store on the third floor of
Shenzhen SEG Electronics Market Phase II on October 1, 2009. Its main
businesses include the wholesale and retail of computer products and
Buy-it Store Refers to
accessories, mobile communication devices, digital products, the
wholesale and retail of office products and the repair services of computer
products. Its business model was transformed from proprietary trading to
joint operation in March 2010.
An integrated information platform for market management with the
SEG Universal Refers to functions of access control management, micro-payment, query system
and information distribution.
Youhao Group Refers to Xinjiang Youhao (Group) Co., Ltd.
State-owned Assets Supervision and Administration Commission of
Shenzhen Municipal People's Government.
Note: According to the requirements in the Notice on the Adjustment of
Name and Nature of State-owned Assets Supervision and Administration
Shenzhen SASAC Refers to by the Shenzhen Municipal People's Government issued by the Shenzhen
Municipal People's Government on June 24, 2011 (SHEN FU [2011] No.
96), Shenzhen State-owned Assets Supervision and Administration
Bureau was renamed as State-owned Assets Supervision and
Administration Commission of Shenzhen Municipal People’s
Government.
CSRC Refers to China Securities Regulatory Commission
Shenzhen Securities Regulatory Bureau of China Securities Regulatory
Shenzhen Securities Regulatory Bureau Refers to
Commission
The Articles of Association Refers to The Articles of Association of Shenzhen SEG Co., Ltd.
Unless otherwise specified, the amount
Refers to Amount in RMB
referred to in the report
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
II. Company Profile
(I) Basic Information
A-share code 000058 B-share code 200058
Short name of A-share SHEN SEG Short name of B-share SHEN SEG B
Listed on Shenzhen Stock Exchange
Legal Chinese name Shenzhen SEG Co., Ltd.
Legal English name SHENZHEN SEG CO., LTD.
Legal representative Wang Li
Registered address 31/F, Tower A, the Stars Plaza, Huaqiang Road (N), Futian District, Shenzhen
Post code 518028
Office address 31/F, Tower A, the Stars Plaza, Huaqiang Road (N), Futian District, Shenzhen
Post code 518028
Website http://www.segcl.com.cn
E-mail segcl@segcl.com.cn
(II) Contact Information
Secretary of the Board of Directors Securities affairs representative
Name Zheng Dan Fan Chonglan
31/F, Tower A, the Stars Plaza, Huaqiang Road 31/F, Tower A, the Stars Plaza, Huaqiang Road
Contact address
(N), Futian District, Shenzhen (N), Futian District, Shenzhen
Phone 0755-83747939 0755-83747939
Fax 0755-83975237 0755-83975237
E-mail segcl@segcl.com.cn segcl@segcl.com.cn
(III) Information Disclosure and Filing Site
Newspaper selected by the Company for China Securities Journal, Securities Times, Securities Daily and Hong Kong
information disclosure Commercial Daily
Website selected by CSRC for publishing the
semi-annual report http://www.cninfo.com.cn (Cninfo Website)
The place where the annual report is Secretary's Office of Board of Directors, 31/F, Tower A, the Stars Plaza, Huaqiang
prepared and kept Road (N), Futian District, Shenzhen
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
III. Summary of Major Accounting and Business Data
(I) Major Accounting Data and Financial Indexes
Are retroactive adjustments made to previous financial statements?
□ Yes √ No □ Not applicable
Major accounting data
Report period (from January The same period of the Year-on-year
Major accounting data
to June 2012) previous year increase/decrease (%)
Total operating income (Yuan) 241988628.19 203,405,221.49 18.97%
Operating profit (Yuan) 48,759,225.85 40,165,703.67 21.4%
Total profit (Yuan) 50,488,899.19 40,489,706.46 24.7%
Net profit attributable to shareholders of
31,621,212.01 26,332,388.35 20.08%
the listed company (Yuan)
Net profit attributable to shareholders of
the listed company after deduction of 30,765,074.21 26,144,053.78 17.68%
non-recurring gains and losses (Yuan)
Net cash flow arising from operating
-50,775,759.58 23,025,932.62 -92.92%
activities (Yuan)
Ending amount of this report Ending amount of the Year-on-year
period previous year increase/decrease (%)
Total assets (Yuan) 1,681,865,616.83 1,673,584,777.35 0.49%
Owners' equity attributable to
1,184,364,413.81 1,152,695,930.59 2.75%
shareholders of the listed company (Yuan)
Share capital (Shares) 784,799,010.00 784,799,010.00 0%
Major financial indexes
Report period (from January The same period of the Year-on-year
Major financial indexes
to June 2012) previous year increase/decrease (%)
Basic earnings per share (Yuan/Share) 0.0403 0.0335 20.3%
Diluted earnings per share (Yuan/Share) 0.0403 0.0335 20.3%
Basic earnings per share after deduction of
non-recurring gains and losses 0.0392 0.0333 17.71%
(Yuan/Share)
Fully diluted average ROE (%) 2.67% 2.28% 0.39%
Weighted average ROE (%) 2.71% 2.4% 0.31%
Fully diluted average ROE after deduction
2.6% 2.26% 0.34%
of non-recurring gains and losses (%)
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
Weighted average ROE after deducting
2.63% 2.38% 0.25%
non-recurring gains and losses (%)
Net cash flow per share arising from
-0.0647 0.0293
operating activities (Yuan)
Ending amount of this Ending amount of the Year-on-year
period previous year increase/decrease (%)
Net asset per share attributable to
shareholders of the listed company 1.5091 1.4688 2.74%
(Yuan/Share)
Asset-liability ratio (%) 19.47% 20.99% -1.52%
The Company's explanations of the major accounting data and financial indexes at the end of this report period (if there are
retroactive adjustments, please provide the explanation of the adjustments.)
(II) Differences of Accounting Data under Chinese and Overseas Accounting Standards
1. The differences of net profit and net assets in this financial report calculated based on international and
Chinese accounting standards
√ Applicable □ Not applicable
Unit: RMB Yuan
Net profit attributable to shareholders of the listed Owners' equity attributable to shareholders of
company the listed company
Amount of the previous
Amount of this period Ending amount Beginning amount
period
Based on Chinese accounting
31,621,212.01 26,332,388.35 1,184,364,413.81 1,152,695,930.59
standards
Adjusted items and amounts based on international accounting standards:
Based on international
31,621,212.01 26,332,388.35 1,184,364,413.81 1,152,695,930.59
accounting standards
2. The differences of net profit and net assets in this financial report calculated based on overseas and
Chinese accounting standards
√ Applicable □ Not applicable
Unit: RMB Yuan
Net profit attributable to shareholders of the listed Owners' equity attributable to shareholders of
company the listed company
Amount of the previous
Amount of this period Ending amount Beginning amount
period
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
Based on Chinese accounting
31,621,212.01 26,332,388.35 1,184,364,413.81 1,152,695,930.59
standards
Adjusted items and amounts based on overseas accounting standards:
Based on overseas accounting
31,621,212.01 26,332,388.35 1,184,364,413.81 1,152,695,930.59
standards
3. Items of significant differences
Specifications in related international
Item of significant differences Amount (Yuan) Causes
and/or overseas accounting standards
Not applicable
4. Explanations of the differences of accounting data under Chinese and overseas accounting standards
No difference
(III) Items of Non-Recurring Gains and Losses and Amounts Deducted
√ Applicable □ Not applicable
Item Amount (Yuan) Remarks
Gains and losses from disposal of non-current assets -4,034.65 Disposal loss of fixed assets
Tax refund, reduction or exemption upon approval
exceeding authorized limits or without formal documents
Special funds for development of the biological,
Internet and new energy industries gained from
Government subsidies recorded into current gains and losses
Shenzhen Municipal People's Government and
(except those closely related with corporate business and 340,000.00
supporting funds gained from the Commerce
enjoyed according to national standards or certain quota)
Department of Hunan Province in this report
period
Fund appropriation charges for non-financial enterprise
recorded into current gains and losses
Gains from the margin between the investment cost of the
Company for acquisition of subsidiaries, joint ventures and
joint operation enterprises and the recognizable fair value of
net assets of invested units at the time of acquisition
Gains and losses from transfer of non-monetary assets
Gains and losses from entrusted investment or managing
assets
Provision for assets impairment withheld for force majeure
Gains and losses from debt restructurings
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
Item Amount (Yuan) Remarks
Expenditures for corporate restructuring, such as expenses
for relocation of employees and for integration
Gains and losses from unfairly priced transactions in which
the transaction value exceeds the fair value
Net current gains and losses of a subsidiary from the period
beginning to the date of merger due to the merger of
enterprises under the control of a same entity
Gains and losses from contingency items irrelevant with
regular operation of the Company
Gains and losses from fair value changes by holding of
transaction financial assets and liabilities, except effective
hedging business related to regular operation of the
Company, and investment income from disposal of
transaction financial assets and liabilities as well as financial
assets available for sale
Transferred-back impairment provision for accounts
receivable, for which separate impairment tests are carried
out
Gains and losses for external entrusted loans
Gains and losses from fair value changes of investment
properties, whose subsequent measurement is carried out
based on the fair value mode
Influence on current gains and losses by one-off adjustment
according to taxation and accounting laws and regulations
Trustee fee from entrusted operation
Other non-operating income and expenses except the
1,393,707.99
above-mentioned items
Other gains and losses fitting the definition of non-recurring
gains and losses
Influenced amount of minority shareholders' equity -441,117.20
Influenced amount of income tax -432,418.34
Total 856,137.80 --
The Company's explanations of "other gains and losses fitting the definition of non-recurring gains and losses" and the fact that the
Company defines items of non-recurring gains and losses as items of recurring gains and losses based on the nature and features of its
businesses
Item Amount (Yuan) Remarks
Not applicable
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
IV. Changes in Share Capital and Information on Shareholders
(I) Information on Changes in Share Capital
1. Table of changes of shares
□ Applicable √ Not applicable
2. Information on changes in restricted shares
□ Applicable √ Not applicable
(II) Issuance and Listing of Shares
1. Previous issuance of shares in the last three years
□ Applicable √ Not applicable
2. Changes in total shares and share structure, and the consequent changes in structure of assets and
liabilities
□ Applicable √ Not applicable
3. Information of existing staff shares
□ Applicable √ Not applicable
(III) Information on Shareholders and Actual Controllers
1. Total number of shareholders by the end of this report period
The Company has 62,907 shareholders by the end of this report period.
2. Information on shares held by the top ten shareholders
Information on shares held by the top ten shareholders
Information on pledged or frozen
Name of shareholder (Full Nature of Share-holding Restricted shares
Total shares held
name) shareholder proportion (%) shares held
Share status Quantity
Pledged 20,179,833.00
Shenzhen SEG Group Co., State-owned
30.24% 237,359,666.00 0.00
Ltd. legal person
Pledged 63,500,000.00
GUANGZHOU FODAK Domestic
ENTERPRISE GROUP non-state-own 2.41% 18,880,334.00 0.00
CO., LTD. ed legal person
Taifook Securities
Overseas legal
Company Limited-Account 1.02% 7,980,784.00 0.00
person
Client
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
Overseas
Gong Qianhua 0.68% 5,311,520.00 0.00
natural person
Domestic
Zhu Wei 0.52% 4,066,739.00 0.00
natural person
Domestic
Tang Lizhu 0.48% 3,796,200.00 0.00
natural person
GUOTAI JUNAN
Overseas legal
SECURITIES 0.47% 3,689,041.00 0.00
person
(HONGKONG) LIMITED
Dalian Huaxin Trust Co.,
Domestic
Ltd. – Beta 1 Structured
non-state-own 0.38% 3,000,000.00 0.00
Securities Investment
ed legal person
Portfolio
Domestic
Cao Xianhua 0.34% 2,702,000.00 0.00
natural person
China Merchants Securities State-owned
0.34% 2,672,676.00 0.00
(Hong Kong) Co., Ltd. legal person
Information on shareholders
Information on unrestricted shares held by the top ten shareholders
√ Applicable □ Not applicable
Share type and quantity
Unrestricted shares held at
Name of shareholder
the period end
Type Quantity
Shenzhen SEG Group Co., Ltd. 237,359,666.00 A shares 237,359,666.00
GUANGZHOU FODAK ENTERPRISE GROUP CO.,
18,880,334.00 A shares 18,880,334.00
LTD.
Taifook Securities Company Limited-Account Client 7,980,784.00 B shares 7,980,784.00
Gong Qianhua 5,311,520.00 B shares 5,311,520.00
Zhu Wei 4,066,739.00 A shares 4,066,739.00
Tang Lizhu 3,796,200.00 A shares 3,796,200.00
GUOTAI JUNAN SECURITIES (HONGKONG)
3,689,041.00 B shares 3,689,041.00
LIMITED
Dalian Huaxin Trust Co., Ltd. – Beta 1 Structured
3,000,000.00 A shares 3,000,000.00
Securities Investment Portfolio
Cao Xianhua 2,702,000.00 A shares 2,702,000.00
China Merchants Securities (Hong Kong) Co., Ltd. 2,672,676.00 B shares 2,672,676.00
Explanations on the associated relationship and/or concerted action units among the above-mentioned shareholders:
Shenzhen SEG Group Co., Ltd. has no associated relationship with other shareholders, nor is it a concerted action unit as described
by the Management Methods for Disclosure of Information on Changes of Shareholding Status of Shareholders of Listed Companies.
It is unknown whether other shareholders have an associated relationship or are concerted action units or not.
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
3. Information on controlling shareholders and actual controllers
(1) Information on changes in controlling shareholders and actual controllers
□ Applicable √ Not applicable
(2) Details about controlling shareholders and actual controllers
Are there any new actual controllers?
□ Yes √ No □ Not applicable
Name of actual controller Shenzhen SASAC
Type of actual controller Local SASAC
Detailed introduction:
1.The first majority shareholder of the Company: Shenzhen SEG Group Co., Ltd.
Legal representative: Sun Shengdian
Date of incorporation: August 23, 1984
Business scope: Production and research of electronic products, household appliances, toys, electronic and telecom
equipment, instruments and meters, auto parts, computers and accessories, office automation equipment and articles and
electronic chemical projects (the licenses of the production sites are specially applied for); acceptance of various electronic
system projects; operation of specialized electronic and communications markets; talent training; real estate development (on
land plots with legally obtained land use rights); real estate agency; shipping agency; logistics & warehousing; high-rise
sightseeing at SEG Plaza and supporting catering, shopping and exhibition services; technical development and maintenance
of network and information projects; import and export.
Registered capital: RMB 1,355,420,000
The equity structure is as follows:
SASAC of Shenzhen Municipal People's Government contributed RMB 630,539,000, taking a proportion of 46.52%.
China Huarong Asset Management Corporation contributed RMB 400,000,000, taking a proportion of 29.51%.
China Orient Asset Management Corporation contributed RMB 189,514,700, taking a proportion of 13.98%.
China Great Wall Asset Management Corporation contributed RMB 135,366,300, taking a proportion of 9.99%.
2. Information on the controlling shareholder of the Company’s first majority shareholder: SASAC of Shenzhen Municipal
People's Government
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
(3) Block diagram of the property rights and controlling relationship between the Company and its actual controllers
China Huarong China Orient China Great Wall
Shenzhen SASAC Asset Mgmt Asset Mgmt Asset Mgmt
C orporation C orporation C orporation
4 6.5 2% 2 9.5 1% 1 3.9 8% 9.9 9%
Shenzhen SEG Group Co ., L t d.
3 0.2 4%
Shenzhen SEG Co ., L t d.
(4) The actual controllers control the Company by trust or other asset management methods.
□ Applicable √ Not applicable
2. Other legal-person shareholders who hold more than 10% shares
□ Applicable √ Not applicable
(II) Information on Convertible Bonds
□ Applicable √ Not applicable
II. Directors, Supervisors and Senior Executives
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
(I) Changes in Shares Held by Directors, Supervisors and Senior Executives
Receiving
remuneration
Increase of Decrease Stock
Shares held Including: from
Beginning date of Ending date of shares held of shares Shares held options Reason for
Name Title Gender Age at period restricted shareholders’
office term office term in this held in this at period end held at change
beginning shares held units or other
period period period end
related units or
not
Wang Li Chairman Male 51 Nov 21, 2011 May 21, 2013 0 0 0 0 0 0 Yes
Zhang
Director Male 48 May 21, 2010 May 21, 2013 0 0 0 0 0 0 Yes
Guangliu
Ye Jun Director Male 52 May 21, 2010 May 21, 2013 0 0 0 0 0 0 Yes
Director/ General
Liu Zhijun Male 44 May 21, 2010 May 21, 2013 0 0 0 0 0 0 No
Manager
Director/Vice
General
Zheng Dan Manager/Secretary Female 47 May 21, 2010 May 21, 2013 35,586.00 0 0 35,586.00 26,689.00 0 No
of the Board of
Directors
Zhu Director/ Vice
Male 51 May 21, 2010 May 21, 2013 0 0 0 0 0 0 No
Longqing General Manager
Jiang
Independent Director Male 53 May 21, 2010 May 21, 2013 11,700.00 0 0 11,700.00 8,775.00 0 No
Yigang
Yang
Independent Director Male 44 May 21, 2010 May 21, 2013 0 0 0 0 0 0 No
Rusheng
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
Receiving
remuneration
Increase of Decrease Stock
Shares held Including: from
Beginning date of Ending date of shares held of shares Shares held options Reason for
Name Title Gender Age at period restricted shareholders’
office term office term in this held in this at period end held at change
beginning shares held units or other
period period period end
related units or
not
Zhou
Independent Director Male 43 May 21, 2010 May 21, 2013 0 0 0 0 0 0 No
Hanjun
Zhao
Supervisor Male 58 May 21, 2010 May 21, 2013 0 0 0 0 0 0 Yes
Xingxue
Tang
Supervisor Male 52 May 21, 2010 May 21, 2013 0 0 0 0 0 0 Yes
Chongyin
Xu
Supervisor Male 48 May 21, 2010 May 21, 2013 0 0 0 0 0 0 Yes
Haisong
Tian
Supervisor Male 46 May 21, 2010 May 21, 2013 0 0 0 0 0 0 No
Jiliang
Ying
Supervisor Male 43 May 21, 2010 May 21, 2013 0 0 0 0 0 0 No
Huadong
Vice General
Li Lifu Male 57 May 21, 2010 May 21, 2013 0 0 0 0 0 0 No
Manager
Total -- -- -- -- -- 47,286 0 0 47,286 35,464 0 -- --
Information on equity incentives bestowed to directors, supervisors and senior executives during this report period
□ Applicable √ Not applicable
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
(II) Information on Directors, Supervisors and Senior Executives Serving in Shareholders'
Units or Other Units
Information about directors, supervisors and senior executives serving in shareholders’ units
√ Applicable □ Not applicable
Receiving
Position in Beginning Ending date of remuneration
Name Name of shareholders’ units shareholders’ units date of office office term from
term shareholders’
units or not
Wang Li Shenzhen SEG Group Co., Ltd. General Manager Jan 1, 2011 Dec 31, 2012 Yes
Zhang Guangliu Shenzhen SEG Group Co., Ltd. Vice General Manager Jan 1, 2010 Jan 1, 2012 Yes
Deputy Secretary of
Party Committee &
Zhao Xingxue Shenzhen SEG Group Co., Ltd. Secretary of Discipline Jan 1, 2010 Dec 31, 2012 Yes
Committee
Head of Asset and
Tang Chongyin Shenzhen SEG Group Co., Ltd. Property Operation Aug 1, 2011 Dec 31, 2012 Yes
Dept.
Xu Haisong Shenzhen SEG Group Co., Ltd. Deputy Head of Aug 1, 2011 Dec 31, 2012 Yes
Strategy Mgmt Dept.
Information about directors, supervisors and senior executives serving in other units
√ Applicable □ Not applicable
Beginning Ending date Receiving
Name Name of other units Position in other date of office of office remuneration
units term term from other
units or not
Wang Li Shenzhen SEG Credit Co., Ltd. Chairman Sep 2011 Sep 2014 No
Liu Zhijun Shenzhen SEG Electronics Market Management Chairman May 2011 May 2014 No
Co., Ltd.
Liu Zhijun Shanghai SEG Electronics Market Co., Ltd. Chairman May 2011 May 2014 No
Liu Zhijun Shenzhen SEG E-Commerce Co., Ltd. Chairman Jan 2011 Jan 2014 No
Liu Zhijun Shenzhen SEG Credit Co., Ltd. Director Sep 2011 Sep 2014 No
Zheng Dan Suzhou SEG Electronics Market Co., Ltd. Chairman Sep 2011 Sep 2014 No
Zheng Dan Wujiang SEG Electronics Market Co., Ltd. Chairman Jun 2012 Jun 2015 No
Zheng Dan Shenzhen SEG E-Commerce Co., Ltd. Director Jan 2011 Jan 2014 No
Zheng Dan Shenzhen SEG Credit Co., Ltd. Director Sep 2011 Sep 2014 No
Chairman of No
Zheng Dan Changsha SEG Development Co., Ltd. Supervisory Board Jun 2010 Jun 2013
Shenzhen SEG Baohua Enterprise Development Chairman of No
Zheng Dan Co., Ltd. Supervisory Board Mar 2012 Mar 2015
Zhu Longqing Changsha SEG Development Co., Ltd. Chairman Jun 2010 Jun 2013 No
Zhu Longqing Shenzhen SEG Electronics Market Management Chairman Apr 2011 Apr 2014 No
Co., Ltd.
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
Receiving
Position in other Beginning Ending date remuneration
Name Name of other units units date of office of office from other
term term units or not
Zhu Longqing Shenzhen SEG Baohua Enterprise Development Director Mar 2012 Mar 2015 No
Co., Ltd.
Zhu Longqing Shenzhen SEG Industrial Investment Co., Ltd. Director Mar 2010 Mar 2013 No
Zhu Longqing Shenzhen SEG E-Commerce Co., Ltd. Director Jan 2011 Jan 2014 No
Shenzhen SEG GPS Scientific Navigations Co., No
Zhu Longqing Ltd. Director Feb 2012 Feb 2015
Ye Jun Shenzhen SEG Engineering Industry Co., Ltd. Chairman Mar 23, 2012 Nov 8, 2013 Yes
Independent May 10,
Jiang Yigang Guangdong Golden Glass Technologies Co., Ltd. Director May 10, 2011 2014 Yes
Jiang Yigang Shanghai ALLBRIGHT LAW OFFICES Lawyer & Senior Jun 1, 2005 Up to now Yes
(Shenzhen) Partner
Yang Rusheng Shenzhen TONGE GROUP Co., Ltd. Independent May 23, 2008 Nov 22, Yes
Director 2012
Vice President & Up to now
Yang Rusheng Crowe Horwath China CPAs Director of Aug. 2007 Yes
Shenzhen Branch
ZHONGJINGFA Engineering Cost Consultant General Manager of Up to now
Yang Rusheng Co., Ltd. Shenzhen Branch Mar. 2008 Yes
Yang Rusheng Crowe Horwath China CPAs, Shenzhen General Manager Aug. 2007 Up to now Yes
Independent
Yang Rusheng PingAn Bank Co., Ltd. Director Jul. 12, 2008 Jun. 30, 2012 Yes
Zhou Hanjun ASIA (Group) Accounting Firm Partner Mar 1, 2012 Up to now Yes
Zhou Hanjun Shenzhen S.E.Z. Real Estate (Group) Co., Ltd. Independent Mar 1, 2012 Mar 31, 2014 Yes
Director
Tian Jiliang Shenzhen SEG Baohua Enterprise Development Director Mar 2012 Mar 2015 No
Co., Ltd.
Chairman of No
Tian Jiliang Xi’an SEG Electronics Market Co., Ltd. Supervisory Board Feb 2011 Feb 2014
Tian Jiliang Xi’an Hairong SEG Electronics Market Co., Ltd. Supervisor Jul 2011 Jul 2014 No
Shenzhen SEG Electronics Market Management Chairman of No
Tian Jiliang Co., Ltd. Supervisory Board May 2011 May 2014
Ying Huadong Changsha SEG Development Co., Ltd. Director Jun 2010 Jun 2013 No
Ying Huadong Shenzhen SEG Electronics Market Management Supervisor Apr 2011 Apr 2014 No
Co., Ltd.
(III) Information about Remuneration of Directors, Supervisors and Senior Executives
Decision-making process According to The Articles of Association, the remuneration of directors and supervisors is determined
of the remuneration of by the General Meeting of Shareholders, but, at present, the Company has not implemented the
directors, supervisors and remuneration system for non-independent directors and supervisors except for independent directors.
senior executives The directors and supervisors of the Company only receive the wages corresponding to their
administrative positions.
The Company adopts the post wage system. The wage of senior executives consists of three parts:
salary, bonus and social benefits. The salary is determined based on each senior executive’s position
Basis of the remuneration and is delivered monthly. The year-end bonus is determined based on each senior executive’s
of directors, supervisors performance on fulfilling the annual operating goals and tasks approved by the General Meeting of
and senior executives Shareholders and before implementation, the standard needs to be approved by the board of directors.
Directors and supervisors only receive the post wage from the company they work for. During January
and April 2012, according to the resolution of the 14th general meeting of shareholders, independent
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
directors of the Company will receive monthly allowances for independent directors totaling RMB
60,000 each year (pre-tax). The travel and accommodation expenses of independent directors due to
attendance of the meetings of the board and the general meeting of shareholders as well as the
expenses incurred by independent directors due to exercising of their powers according to Articles of
Association are reimbursed by the Company according to the actual expenses. Since May 2012,
according to the resolution of the 17th General Meeting of Shareholders (for year 2011), independent
directors of the Company will receive monthly allowances for independent directors totaling RMB
100,000 each year (pre-tax). The travel and accommodation expenses of independent directors due to
attendance of the meetings of the board and the general meeting of shareholders as well as the
expenses incurred by independent directors due to exercising of their powers according to Articles of
Association are reimbursed by the Company according to the actual expenses.
Directors and supervisors only receive the post wage from the company they work for. The annual
Actual delivery of the salary is determined based on each director and supervisor’s work on achieving the annual operating
remuneration to the goal. The annual salary of each senior executive is determined based on the result of year-end
directors, supervisors and performance appraisal. The annual salary consists of two parts: basic annual salary and performance
senior executives salary. The basic annual salary is delivered by month and the performance salary is delivered according
to the result of year-end appraisal.
(IV) Staff Changes of Directors, Supervisors and Senior Executives
□ Applicable √ Not applicable
(V) Information about Employees of the Company
Number of current employees 386
Number of retired workers to whom the Company pays pension
benefits 0
Profession composition
Profession composition Number of employees
Production staff 67
Sales staff 187
Technical staff 56
Financial staff 25
Administrative staff 51
Education background
Education background Number of employees
Master 32
Bachelor 109
Junior college graduate 142
Senior high school graduate or lower 103
16
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
VI. Report of the Board of Directors
(I) Discussion and Analysis of the Management
1. The overall operation of the Company
The year of 2012 is the second year of the Company’s Twelfth Five-year Strategic Plan. Facing increasingly fierce market
competition, the Company insists on carrying out the guiding ideology of innovation and steady development and carries out the
work closely around the annual operating objectives and strategic businesses. Focusing on operating performance and management,
the Company spares no effort to implement strategic businesses and improve strategic governance. In addition to continuously
improving basic management and standards construction, the Company optimizes internal governance structure through effective
ways to prevent risks, such as constructing and implementing an internal control system. The Company also strengthens innovation
continuously, expands businesses of Electronics Markets, e-commerce, financial value-added services and channel retail terminals
actively and improves the profitability of main businesses by enhancing entity market management. In this report period, the
Company has opened two electronics markets and has signed contracts for four new electronics market projects (see (1) "Operating
of electronics markets, 2. Main businesses and operating status, (1) Discussion and Analysis of the Management" in this chapter).
SEG E-Commerce, whose 51% equity held by the Company, has repositioned and adjusted its business modes according to business
development requirements. The Company enhances its competitive edges continuously and further improves the core
competitiveness and brand influence of its main business (electronics markets) through joint development of strategic businesses
such as electronics markets, e-commerce, channel retail terminals and small loans. In this report period, the Company’s businesses of
traditional electronics markets and property lease developed steadily. The whole company is in good conditions now.
In this report period, the Company realized an operating income of RMB 241.9886 million Yuan, with an increase rate of 18.97%
over the same period of last year. Increase in operating income year-on-year in this period was mainly due to: 1. sharp operating
income increase of SEG Industrial Investment with its Buy-it Stores’ turning from self-support mode to joint operation mode; 2.
added operating income of three newly founded share-controlled subsidiaries, namely SEG CREDIT, Nanjing SEG and Xi'an
Hairong SEG; 3. operating income increase of the businesses of electronics markets and property lease.
In this report period, the Company realized a net profit of RMB 31.62 million, with an increase rate of 20.08% over the same period
of last year. Increase in total profit year-on-year in this period was mainly due to: 1. profit increase of all electronics markets over the
same period of last year; 2. newly added profit of SEG CREDIT over the same period of last year; at the time, reduced the losses
from selling SEG Logistics compare to last year; 3. reduced loss of ST Samsung and company investment over the same period of
last year; 4. income increase from bank financing over the same period of last year.
2. Main businesses and operating status
Main businesses of the Company include operating of professional electronics markets, property lease service, e-commerce and
value-added business of small loan.
(1) Operating of electronics markets
17
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
In 2012, electronics markets are faced with increasing competition among themselves and from other sales channels such as 3C
marts and e-commerce. To win in the competition, the Company increases investments and the number of researches on
electronics markets, makes full use of the advantage of synergy resources of its national chain market, strengthens innovation
and improves the expanding speed of the business, ensuring steady operating and identifying new profit growth points.
In this report period, the Company founded Xi’an Hairong SEG Electronics Market (51% equity held by the Company) on
April 27, 2012 and began trail operating of Shajing SEG Electronics Market (managed by entrustment) on January 19, 2012.
Letters of intent for cooperation/management of East Gate SEG Electronics Market Project (managed by entrustment), Wujiang
SEG Electronics Market Project (51% equity held by the Company), Ningbo SEG Digital Square Project and Ningbo SEG
Electronics Market Project have been signed. Huzhou SEG Digital Square (managed by entrustment) are being prepared.
In the first half of 2012, all electronics markets around the country tapped market potential and reduced consumptions actively
on the basis of safe operating and have increased their operating income by ways such as rising management fee and lease fee,
adding commercial spaces, improving occupancy rate and providing value-added services. Two new markets (Nanjing SEG
and Xi’an Hairong SEG) realized the goal of no loss in this report period. All other company controlled electronics markets
have reached a sharp profit increase over the same period of last year. All electronics markets of the Company in operating
have earned profits in this report period.
Until June 30, 2012, the Company has achieved an operating income of RMB 121.8887 million from the business of
electronics markets with a growth rate of 34.27% over the same period of last year; RMB 42.8886 million has been realized in
total profit, with an increase rate of 40.50% over the same period of last year.
(2) Property lease service
In the first half of this year, SEG Baohua, a Company controlled subsidiary, operated well in property lease business with an
occupancy rate higher than 98% of its office buildings. Affected by the recession of domestic mobile phone business, the
property lease businesses in SEG headquarter declined in both lease price and occupancy rate. In this report period, the
Company realized an operating income of RMB 37.0008 million, with a increase rate of 1.29%; RMB 6.0380 million has been
realized in total profit, with a decrease rate of 53.35%.
(3) E-commerce
In this report period, the e-commerce business of the Company was oriented with the development and implementation of the
SEG Universal. The SEG Network was positioned as an on-line electronics market serving shops in SEG electronics markets
around the country. SEG E-Commerce focused on developing and testing the network version 2.0, and developing and
implementing the phase II functions of the SEG Universal in this report period. The SEG Universal has been approved as a
2012 First-batch Special Funded Internet Development Project in Shenzhen city. In this report period, the Company realized an
income of RMB 2.4755 million and had a total loss of RMB 2.9919 million in profit. The profit loss was 26.54% less than that
of the same period last year due to adjustment of business mode and no founded upfront cost.
(4) Small Loan Business
18
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
The SEG CREDIT was founded at the end of 2011, after a half year’ s development, its small loan business has entered into a
steady status with an interest recovery rate of 100%. Insisting on self-innovation, SEG CREDIT has been developing new
financial products to meet varied small loan requirements of shops in electronics markets. In this report period, the Company
realized an operating income of RMB 7.7553 million and a total profit of 3.4728 million from the small loan business. The loan
business developed steadily with a loan balance of RMB 67.8260 million by the end of this period.
Is the actual operating performance 20% more/less than that in the publicly disclosed operating plan or profit forecasts?
□ Yes □ No √ Not applicable
Analysis of operating and performance of major subsidiaries and joint stock companies
(1) SEG E-Commerce, whose 51% equity is held by the Company, was founded on January 24, 2011 with registered capital of
RMB 48.00 million and is mainly engaged in e-commerce. In this report period, this company realized an operating income of
RMB 2.48 million.
(2) SEG CREDIT, whose 36% equity is directly held by the Company and 51.7064% equity is controlled by the Company after
conversion, was founded on December 27, 2011 with registered capital of 150.00 million and is mainly engaged in small loan
business. In this report period, this company realized an operating income of 7.75 million and a total profit of 3.47 million.
(3) The Company’s controlled company SEG Baohua, whose 66.58% equity is held by the Company, is mainly engaged in
property operating and management, and hotel business, with registered capital of RMB 30.8088 million. In this report period,
this company realized an operating income amounting to RMB 34.77 million, with an increase rate of 17.4% over the same
period of last year; RMB 11.86 million has been realized in total profit, with an increase rate of 12.5% over the same period of
last year.
(4) (4). SEG Industrial Investment, whose 91.8% equity is held by the company, is mainly engaged in the channel retail business of
electronics products, and property operating and management, with registered capital of RMB 25.50 million. In this report
period, this company realized an operating income of RMB 67.57 million with an increase rate of 78.3% over the same period
of last year. The sharp income increase in this report period was due to the income increase of channel sales, agent procurement
and joint operation trade businesses.
(5) Xi’an SEG, whose 65% equity is held by the Company, is mainly engaged in the operating and management of professional
Electronics Market, with the registered capital of RMB 3 million. In this report period, this company realized an operating
income amounting to RMB 16.23 million, with an increase rate of 17.7% over the same period of last year; RMB 4.38 million
has been realized in total profit, with a decrease rate of 69.8% over the same period of last year. The sharp income increase of
this company in this report period was due to the income increase of advertising, promoting, storage and lease fee.
(6) Longgang SEG, whose 70% equity is held by the Company, is mainly engaged in the operating and management of
professional Electronics Market, with the registered capital of RMB 3 million. In this report period, this company realized an
operating income amounting to RMB 5.94 million with a decrease rate of 15.7% over the same period of last year; RMB 3.02
million has been realized in total profit, with an increase rate of 259.5% over the same period of last year.
(7) Suzhou SEG, whose 45% equity is held by the Company, is mainly engaged in the operating and management of professional
19
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
Electronics Market, with the registered capital of RMB 3 million. In this report period, this company realized an operating
income amounting to RMB 18.14 million, with an increase rate of 7.02% over the same period of last year; RMB 4.17 million
has been realized in total profit, with an increase rate of 68.8% over the same period of last year. The sharp income and profit
increase of this company in this report period was due to measures such as adding shops, providing value-added services, rising
lease fee and fees for services and advertising and improving occupancy rate.
(8) Changsha SEG, whose 46% equity is held by the Company, is mainly engaged in the operating and management of
professional Electronics Markets and property lease and management, with registered capital of RMB 35.00 million. In this
report period, this company realized an income increase of RMB 8.76 million with an increase rate of 27.5% over the same
time of last year; RMB 1.12 million has been achieved in total profit, which was 36.3 times of that in the same period of last
year. The sharp income and profit increase of this company in this report period was due to the factors such as increased
popularity and customers with the demolition of subway engineering covers around the electronics market and so on.
(9) Xi’an Hairong SEG, whose 51% equity is held by the Company, is mainly engaged in the operating and management of
electronics markets with registered capital of RMB 3 million. The Xi’an Hairong SEG electronics market controlled by this
company has been started on April 27, 2012. In this report period, this company realized an income of RMB 5.86 million.
(10) Nanjing SEG, whose equity is all held by the Company, is mainly engaged in the operating and management of professional
Electronics Markets, with registered capital of RMB 20.00 million. In this report period, this company realized an operating
income of RMB 14.55 million.
Main share-holding enterprises:
(1) ST Samsung, a share-holding enterprise of the Company, whose 22.45% equity is held by the Company, is mainly engaged in
manufactures and sales of CRT glass shell and coating glass of STN-ITO, with the registered capital of RMB 896.67 million.
Due to market conditions, this company stopped the CRT production in 2009 and the STN production in August 2010. Until
then, all production lines of this company were out of service. In the first half of 2012, this company still had no main business.
(2) Shanghai SEG, a share-holding company of the Company, whose 35% equity is held by the Company, is mainly engaged in the
operating and management of professional Electronics Market, with the registered capital of RMB 5 million. In this report
period, this company realized an operating income amounting to RMB 19.14 million with an increase rate of 12.1% over the
same period of last year; RMB 2.26 million has been realized in total profit, with a decrease rate of 46.9% over the same period
of last year.
(3) SEG GPS, whose 12.5% equity is held by the Company, is mainly engaged in the production and operating network services of
the SEG Car Leader GPS, with registered capital of RMB 60.00 million and total assets of RMB 384.29 million. In this report
period, this company realized an operating income amounting to RMB 149.17 million, with an increase rate of 24.49 % over
the same period of last year; RMB 16.55 million has been realized in total profit, with a decrease rate of 6.24 % over the same
period of last year.
Risk factors that may adversely affect the implementation of the Company’s future development strategy and operating objectives
are:
20
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
1. The complex and uncertain macro-economy home and aboard may bring severe challenges to the development of strategic
businesses of the Company.
2. It may be more difficult to expand electronics markets because of restrictions of location of the business district, lease cost and
cooperation conditions.
3. New businesses, such as e-commerce, channel sales and small loan, are still at a preliminary stage, and therefore need a
relatively long period to cultivate the market and enlarge the brand influence.
4. The future development of ST Samsung (with a Company share of 22.45%) will have a major effect to the development of the
Company. However, there is significant uncertainty about the continuous operating of ST Samsung.
5. Affected by the operating environment, small and micro businesses operate in difficulty with increased loss and collapse, which
brings severe situations for the property release business of the Company.
6. The living space of traditional electronics market shrinks due to the fierce competition of 3C marts and e-commerce.
1. Main businesses and operating status
(1) Operating status of main businesses classified by industry or product
Unit: RMB Yuan
Increase/decrease Increase/ decrease
Year-on-year
Classified by rate of operating rate of operating
Gross profit increase/decrease
industries or Operating income Operating cost income on a cost on a
rate (%) of gross profit
products year-on-year basis year-on-year basis
rate (%)
(%) (%)
Classified by industry
Electronics
markets and
158,889,463.01 98,955,816.93 37.72% 39.09% 46.05% -2.97%
property lease
businesses
Trade 66,987,818.16 65,959,086.25 1.54% 80.09% 79.67% 0.24%
Classified by product
Not applicable
Description of main businesses classified by industry and product
1. In this report period, income of operating of electronics markets and property lease has increased by 39.09% over the same
period of last year. The increase was due to: (1) operating income from two newly founded companies, Xi'an Hairong SEG and
Nanjing SEG, who were invested by the Company; (2) income increase of other electronics markets of the Company around the
21
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
country with raised lease fee and occupancy rate.
The reason for increased operating cost was that the cost of this business would rise with income increase.
In the same period of last year, most of the electronics markets within the scope of consolidation were mature markets and had
high occupancy rates, so the gross profit rate of was higher than this period. Nanjing SEG and Xi'an Hairong SEG were newly
founded in September and December 2011. In this report period, they were still at a preliminary developing stage and only
realized an income of RMB 20.4191 million in total, 12.85% of the total income of operating of electronics markets and
property lease of the Company. The integrated gross profit rate of the two companies was 5%, so causing decrease to the gross
profit rate of this business of the Company.
Property lease business operated by the operating department of the Company has seen a 4% decrease in gross profit rate over
the same period of last year because of decreased lease fee and occupancy rate in this report period.
2. In this report period, the income of trade business of the Company has increased by 80.09% for SEG Industrial Investment, a
Company controlled subsidiary, has turned its store-operating mode to channel sales mode and put more efforts to expand trade
business and has already realized an income increase.
The reason for increased operating cost was that the cost of this business would rise with income increase.
Reasons for sharp increase/decrease in gross profit rate over the same period of last year:
There is no sharp increase/decrease in gross profit rate in this report period.
(2) Operating status of main businesses classified by region
Unit: RMB Yuan
Year-on-year increase/decrease rate of
Region Operating income
operating income (%)
Shenzhen 174,649,987.00 27.42%
Xi’an 22,094,387.39 80.78%
Su Zhou 18,136,242.91 7%
Changsha 12,556,330.05 15.15%
Nanjing 14,551,680.84
Overseas 0 -100%
Description of main businesses classified by region:
In this report period, sales income of Xi'an district has increased by 80.78%, mainly due to: 1. operating income of newly founded
Xi'an Hairong SEG; 2. income increase of Xi'an SEG realized by reconstruction of the market area, re-planning of shops, rise of lease
fee and advertising price.
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
In this report period, overseas sales income has decreased by 100%, mainly due to that all equities of SEG Logistics, who had
oversea businesses, were sold by the Company in 2011.
Description of constitutes of main businesses:
Main businesses (businesses with an income of 10% or more of the Company's operating income in this report period)
1. Professional electronics markets and property lease
The businesses of electronics markets and property lease have realized an operating income of RMB 158.8895 million and a
total profit of RMB 48.9266 million with a profit increase rate of 12.56% over the same period of last year.
2. Trade business
In this report period, the trade business of the Company has achieved an operating income of RMB 66.9878 million and a total
profit of RMB 0.1192 million, with a profit increase rate of 112.10%.
(3) Reasons for major changes in main businesses and their structures
□ Applicable √ Not applicable
(4) Reasons for major changes in profitability (gross profit rate) of main businesses on a year-on-year basis
□ Applicable √ Not applicable
(5) Reasons for major changes in profit composition on a year-on-year basis
□ Applicable √ Not applicable
(6) Business nature, main products or services and net profit of joint stock companies whose net profit takes up 10% or more
of the total net profit of the Company
□ Applicable √ Not applicable
(7)Problems and difficulties in the operating
① Competitions in strategic businesses of the Company are becoming much fiercer. The market share and competitiveness of
electronics market business is reducing due to the continual impact of new 3C chain marts and e-commerce. Newly developed
businesses, such as e-commerce, channel business and small loan business, are still at a preliminary stage and need a long time to
cultivate the market and enlarge brand influence.
② The future development of ST Samsung, whose 22.5% equity is held by the Company, will have a major effect to the
development of the Company. However, there is significant uncertainty about the continuous operating of ST Samsung.
③ More professional workers are required along with the increase of market-expanding projects.
④ It is much more difficult to operate invested electronics market projects in leased properties.
⑤ The expansion speed of channel business should be improved.
23
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
⑥ The overall development and operating income of small loan business should be improved.
⑦ Affected by the operating environment, micro businesses operates in difficulty with increased loss or collapse. Therefore, there
are many uncertainties of the lease market and property lease business of the Company is facing a severe situation.
2. Internal control regulations on fair value measurement
□ Applicable √ Not applicable
Valuation technology is used in all same or similar projects in two years to measure fair values. Are there major differences in the
results? If there are, specify them.
□ Yes □ No √Not applicable
3. Foreign currency financial assets and liabilities held by the Company
□ Applicable √ Not applicable
(II) Investment of the Company
1. Overall use of raised funds
□ Applicable √ Not applicable
2. Committed projects for fund raising
□ Applicable √ Not applicable
3. Changes of committed projects for fund raising
□ Applicable √ Not applicable
4. Major projects invested by non-raised funds
√ Applicable □ Not applicable
Unit: RMB ten thousand Yuan
First public
Project name Amount Progress Profit
disclosure date
Currently, the project is being
Wujiang SEG Electronics Market
May 12, 2012 153 prepared and no invest is Not applicable
Project
received in this report period.
Total 153 -- --
Description of major projects invested by non-raised funds
24
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
According to the resolution of the twenty-first interim meeting of the fifth session of the board of directors, the Company and
Suzhou Nanhaimingzhu Real Estate Development Co., Ltd. decided to invest on the Wujiang SEG Electronics Market Project
jointly with registered capital of RMB 3 million. The Company holds 51% of the equity. Until the end of this report period, the
project was still being prepared and no investment was received in this report period.
(III) Modification Plan of the Board of Directors for the Operating Plan of the Second Half
of This Year
√ Applicable □ Not applicable
According to the Twelfth Five-year Development Strategy Plan of the Company and the maturity of investment conditions of specific
projects, the Company has made the following modifications to the operating plan of the second half of the year:
No. Name/Purpose of Investment Remarks for projects Modification plan for operating plan of the
projects disclosed in the plan disclosed in the report of 2011 second half of 2012
report of 2011 disclosed in
the report of
2011
(RMB ten
thousand
Yuan)
1 Newly founded 22,400 The Company intends to found
electronics markets new electronics markets (leased
or self-built) according to its No modification
strategic plan on electronics
markets.
2 E-commerce 918 RMB 15.30 million has been The project is canceled by the Company and no
invested in January 2011 and the capital will be invested in e-commerce in this phase
amount planned to be invested because of repositioning of and adjustment to the
in phase II is RMB 9.18 million. developing mode of e-commerce.
3 Intend to acquire equities 10,746 The Company plans to acquire one share-holding
of one or two subsidiary's equities (8.2058% equity of SEG
share-holding Industrial Investment) from its partners. The
subsidiaries with acquisition has been approved by the fifth session of
value-adding potential board of directors at its ninth meeting on July 23,
25
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
from their partners 2012 and disclosed by appointed medias on July 24,
2012. The acquisition is in progress now and the
required amount is about RMB 7 million. There is no
other equity acquire plan of the Company.
4 Extend of the land use 2,000 The land use right of Block B,
right of Block B, Baohua Baohua Building will expire on No modification
Building August 20, 2012.
5 Intend to invest more 1,717
The case is just under progress.
capital in SEG CREDIT
6 Invest the Shenzhen City -- -- The project is a newly added project. It has been
project in Kashgar, approved by the fifth session of board of directors at
Xinjiang. its ninth meeting and disclosed by appointed medias
on July 24, 2012. The investing amount of the project
is RMB 20 million.
The Company will spare no efforts to continue to complete all works in the second half of this year, focusing on the following
aspects:
1. Insist on innovation and steady development, and maintain a sense of crisis.
2. Pay close attention to key companies and progress of key businesses, and implement strategic synergy and resource bundle.
3. Carry out prospective studies of SEG electronics markets as soon as possible, including but not limited to studies on industrial
developing trends, positioning, type of operation and industrial chain intervention.
4. Improve the expansion speed of businesses, start new markets in varied methods and well prepare for the Wujiang SEG
Electronics Market Project, Ningbo Electronics Market, Ningbo SEG Digital Square and Wuxi SEG Electronics Market
Project.
5. Promote developments by innovation to improve competitiveness as soon as possible, especially the competitiveness and
optimization of established systems of internal control, human resource and benchmarking management.
6. Identify key works for the next year.
7. Raise fund and make plans for use.
8. Start the revision of the Twelfth Five-year Development Strategy Plan of the Company at a proper time.
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
(IV) Performance Forecasts of January to September, 2012
Warning and reasons for forecasts on loss of the accumulated net profit from the year beginning to the end of next period or sharp
year-on-year changes in net profit
√ Applicable □ Not applicable
Performance forecasts: increase significantly
Selection of type of the data filled in the performance forecasts
□ Exact number √ Interval number
From the year beginning to The same
the end of the next report period of the Increase or decrease (%)
period previous year
Forecasts of accumulated net √ increase
4,500 -- 5,500 2,761 63% -- 99%
profit (ten thousand Yuan) □ decrease
Basic earnings per share √ increase
0.0573 -- 0.0701 0.0352 63% -- 99%
(Yuan/Share) □ decrease
1. Profits of operating of electronics markets and property lease have increased.
2. The profit of SEG Credit was added to the total profit of the Company and the loss of sold
SEG Logistics was excluded from the Company in this report period.
3. The loss of ST Samsung and company investment has reduced over the same period of last
Description of the
year.
performance forecasts
4. Bank financing income was added to the total income of the Company compared with the
previous year.
5. The relevant financial data in the performance forecasts of this period have not yet been
pre-audited by CPA.
(V) Description of the Board of Directors on the Non-standard Auditor’s Report Prepared by
the Accounting Firm in This Period
□ Applicable √ Not applicable
(VI) Description of the Board of Directors on Changes and Handlings of Events Involved
in the Non-standard Auditor’s Report Prepared by the Accounting Firm in Last Year
□ Applicable √ Not applicable
27
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
(VII) Results of Discussion of the Board of Directors on Reasons and Effects of the Changes in
Accounting Polices, Accounting Estimates or the Correction of Major Accounting Errors
□ Applicable √ Not applicable
(VIII) Formulation and Implementation of the Cash Dividend Policy of the Company
To further implement the requirements of the Notice on Implementing the Requirements of the Notice on Further Implementing the
Cash Dividend Issues of Listed Companies [2012) No. 43) released by the Shenzhen Securities and Futures Bureau (SSFB), and to
optimize the profit distribution policy of the Company, the Company formulated the Work Plan of Shenzhen SEG Co., Ltd About
Implementing the Cash Dividend Issues, implemented special research and demonstration on the shareholder return plan, and profit
distribution policy, especially the improvement of cash dividend policy-making process and mechanism, and completed the Shenzhen
SEG Co., Ltd Demonstration Report on Shareholder Return Plan, which was reviewed and approved at the ninth meeting of the fifth
session of the Board of Directors on July 23, 2012. Based on the demonstration report, the Company modified the Articles of
Association, in which the company specified the cash dividend payout standard and payout ratio, profit distribution policy, especially
the improvement of cash dividend policy-making process and mechanism, and the condition and procedure for adjusting the profit
distribution policy. In addition, the Company formulated the 2012-2014 Shareholder Return Plan. The above-mentioned amendment
to the Articles of Association and the 2012-2014 Shareholder Return Plan have been reviewed and approved at the first interim
general meeting of shareholders on August 9, 2012.
1. Formulation of the Cash Dividend Policy
The first interim general meeting of shareholders in 2012 was held on August 9, 2012. The Proposal on Amending the Articles
of Association was reviewed and approved at the meeting. The amended Articles of Association consummated the profit
distribution policy, especially the cash dividend policy-making mechanism, specified the implementation condition of the cash
dividend policy, and clarified that if the implementation condition of the cash dividend policy is met, the profit distributed by
cash in one year should not be less than 10% of the distributable profit of the year, and the accumulated profit distributed by
cash in the latest three years should not be less than 30% of the average distributable profit of the latest three years.
2. Implementation of the cash dividend policy
ST Samsung, whose 22.45% equity is held by the Company, suffered great loss in 2009, which caused loss to the Company's
net profit. By the end of 2011, the distributable profit of the Company available to shareholders is RMB -145,156,733.44.
According to the regulations in the Company Law and the Articles of Association, the Company's profit in one year should
cover the deficit in previous years. Calculated based on the profitability of 2011, the Company needs at least two to three years
to cover the above-mentioned deficit and earn profits for distribution. The current cash dividend policy of the Company meets
the requirements of the Articles of Association and the resolution adopted at the general meeting of shareholders. The cash
dividend policy-making process and mechanism of the Company are complete. Independent directors are responsible and
fulfilling their roles well. Middle and small shareholders have opportunities to express their opinions and appeals, and their
legal rights are protected.
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2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
(IX) Profit Distribution Proposal or Plan for Converting Capital Reserve to Bonus Shares
□ Applicable √ Not applicable
(X) Description of the Situation That No Cash Bonus Plan Was Proposed When the
Accumulated Undistributed Profit is Positive at the End of 2011
□ Applicable √ Not applicable
(XI) Other Disclosures
1. Implementation of regulations on management of non-public information and insiders
(1) In this report period, the Company implemented the Confidentiality System of Shenzhen SEG Co., Ltd for Insiders of Non-public
Information, Non-public Information Insider Reporting System and Regulations of Shenzhen SEG Co., Ltd on Management of
Non-public Information and Insiders very well.
The Company strictly implemented the management requirements for report of non-public information to external institutions: the
external institution or the user was required to sign a confidentiality commitment at the time of report; routine reports and other
non-public information were submitted to the specific external user of information while the time of routine reports should not be
earlier than the time of disclosure and the disclosed information of the performance flash report should not be less than the content
offered to the external user of information. In accordance with the requirements of Shenzhen Stock Exchange, the Sheet of Report of
Shenzhen SEG Co., Ltd to the Controlling Shareholder and the Actual Controller was submitted to Shenzhen Securities Regulatory
Bureau by the Company every month.
2. Implement the reminder system for the Company’s directors, supervisors and senior management as well as non-public
information insiders
Prior to information sensitive periods, the Secretary’s Office of the Board of Directors timely reminded the Company's directors,
supervisors and senior management as well as non-public information insiders not to buy or sell the Company’s shares, thus
effectively preventing illegal behaviors. The Company implemented self-inspection on whether its directors, supervisors and senior
executives as well as other insiders of non-public information bought or sold the Company’s shares within 30 days prior to the
disclosure of periodical reports, within 10 days prior to the disclosure of performance forecasts and flash reports, during the
disclosure of other important events or other sensitive periods. No insider trading by relevant personnel using non-public information
was discovered.
2. The Company was notified on February 28, 2011 by the majority shareholder that the latter was planning important events, so the
shares of the Company were suspended from March 1, 2011 in order to prevent abnormal price changes and protect the interests of
investors.
29
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
The Company was notified at 16:00, August 9, 2012 by the majority shareholder that the latter and other stakeholders would work
closely around important events of the Company during the time when the shares of the Company were suspended. However, it is
difficult to achieve an agreement among all related parties, so the preceding decision was aborted after careful consideration. The
shares of the Company resumed trading on August 10, 2012. The Company disclosed the Announcement of Shenzhen SEG Co., Ltd
on Stock Resumption and the Termination of Planning on Important Events on the China Securities Journal, the Securities Times, the
Securities Daily, the Hong Kong Commercial Daily and the Cninfo Website on August 10, 2012.
3. Independent directors' special description of and independent advice to occupancy of company funds by the controlling
share-holder or other related parties and external guarantees of the Company occurred in this report period or previously occurred but
extended to this report period: there is no occupancy of Company funds by the controlling share-holder or other related parties or
external guarantees of the Company occurred in this report period; no guarantee made by the controlling share-holder, actual
controller, any non-legal person unit or individual was discovered. Within this report period, no outward guarantee occurred in the
Company and the balance of guarantee is zero.
(XII) The Company’s Liabilities, Assets and Credit Changes and Cash Arrangement for
Future Repays (this table to be filled only by listed companies who issues convertible
bonds)
□ Applicable √ Not applicable
30
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
VII. Important Matters
(I) Corporate Governance
1. In this report period, the Company constantly improved its governance structure and standardized the operation by strictly
abiding by laws and regulations such as the Company Law and the Securities Law, as well as the Code of Corporate
Governance for Listed Companies, the Articles of Association, and other laws and regulations relevant to the governance of
listed companies. However, there are still the following matters in the Company:
(1) The controlling shareholder manages the Company through the Property Right Representative Report System. The
Company’s controlling shareholder SEG Group is a state-controlled enterprise in Shenzhen and Shenzhen State-owned
Assets Supervision & Administration Bureau is the controlling shareholder of SEG Group. It must implement the
Property Right Representatives Report System for state-owned assets management according to the management methods
of state-owned assets of Shenzhen.
(2) In respect of personnel assessment, the Company’s controlling shareholder SEG Group implements annual performance
assessment on senior executives according to the attainment of annual operation indicators and other indicators stipulated
by SEG Group.
(3) The Company submits undisclosed information to its major shareholders and actual controllers.
This is due to the requirements of the Property Right Representatives Report System and the state statistics departments. In
accordance with the requirements of state-owned assets supervision department, the Company has been submitting monthly flash
reports to its major shareholders and actual controllers and reporting important issues to its major shareholders and actual controllers
before they are disclosed. The Company submitted the Table of Listed Companies Submitting Undisclosed Information to Major
Shareholders and Actual Controllers and the Letter of Commitment to the Shenzhen Securities Regulatory Bureau on October 18,
2007. SEG Group has presented the Letter of Commitment on Reinforcing the Management of Undisclosed Information to the
Shenzhen Securities Regulatory Bureau. Meanwhile, the Company has established and implemented the Undisclosed Information
Insider Reporting System and the Confidentiality System of Shenzhen SEG Co., Ltd. for Insiders of undisclosed Information and has
monthly reported to Shenzhen Securities Regulatory Bureau about its reports of undisclosed information. On July 15, 2009, the
managers and headquarters staffs of the Company have signed a Confidentiality Agreement with the Company, which specified their
responsibility in keeping commercial secrets and undisclosed information confidential.
The undisclosed information the Company offered to its major shareholders and actual controllers in this report period is as follows:
31
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
Relationship
Organization to between the Time or
No. which organization Type of information Procedure of report period of Basis for report Procedure of
information is and the report approval
reported Company
The invested corporation of the
Company and the financial staff at
the headquarters prepare the report The Notice on Matters about Preparation of
The flash report of main
Controlling and consolidate the statements, Monthly Financial Flash Reports by Enterprises
1 Shenzhen SEG shareholder financial indicators of the
which are reviewed by the leadership Monthly under Supervision and Administration of SASAC, the
Agreed by the Board
Group Co., Ltd. (30.24%) company registered in
of the Financial Department and file of SASAC of the State Council (GUO ZI TING
of Directors
Shenzhen
reported through the State-owned PING JIA [2003] No. 23 )
Asset Management Information
System.
The invested corporation of the
Company and the financial staff at The Notice on Matters about Preparation of
Shenzhen SEG Controlling Summary sheet of the headquarters prepare the sheet Monthly Financial Flash Reports by Enterprises
Agreed by the Board
2 Group Co., Ltd. shareholder implementation of and consolidate the statements, Monthly under Supervision and Administration of SASAC, the
of Directors
(30.24%) monthly expense budget which are reported through the file of SASAC of the State Council (GUO ZI TING
State-owned Asset Management PING JIA [ [2003] No. 23 )
Information System.
The invested corporation of the
Company and the financial staff at The Notice on Matters about Preparation of
Shenzhen SEG Controlling Summary sheet of monthly
the headquarters prepare the sheet Monthly Financial Flash Reports by Enterprises
Agreed by the Board
3 Group Co., Ltd. shareholder cash flow
and consolidate the statements, Monthly under Supervision and Administration of SASAC, the
of Directors
(30.24%) which are reported through the file of SASAC of the State Council (GUO ZI TING
State-owned Asset Management PING JIA [ [2003] No. 23 )
Information System.
The financial personnel at the The Notice on Matters about Preparation of
Shenzhen SEG Controlling Summary sheet of deposits headquarters prepare the sheet that is Monthly Financial Flash Reports by Enterprises
Agreed by the Board
4 Group Co., Ltd. shareholder and financing loans of the reported through the State-owned Quarterly under Supervision and Administration of SASAC, the
of Directors
(30.24%) headquarters Asset Management Information file of SASAC of the State Council (GUO ZI TING
System. PING JIA [ [2003] No. 23 )
The invested corporation of the
Summary sheet of Company and the financial staff at The Notice on Matters about Preparation of
Controlling quarterly non-operating the headquarters prepare the sheet Monthly Financial Flash Reports by Enterprises Agreed by the Board
5 Shenzhen SEG shareholder gains and losses of the and consolidate the statements, Quarterly under Supervision and Administration of SASAC, the of Directors
Group Co., Ltd. (30.24%) company registered in which are reported through the file of SASAC of the State Council (GUO ZI TING
Shenzhen State-owned Asset Management PING JIA [ [2003] No. 23 )
Information System.
6 Controlling Summary sheet of Quarterly The Notice on Matters about Preparation of
Shenzhen SEG shareholder quarterly information on
It began to be reported since June
Monthly Financial Flash Reports by Enterprises
Agreed by the Board
32
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
Relationship
Organization to between the Time or
No. which organization Type of information Procedure of report period of Basis for report Procedure of
information is and the report approval
reported Company
(30.24%) investment properties of under Supervision and Administration of SASAC, the
Group Co., Ltd. the company registered in
2009.
file of SASAC of the State Council (GUO ZI TING
of Directors
Shenzhen The invested corporation of the PING JIA [ [2003] No. 23 )
Company and the financial staff at
the headquarters prepare the sheet
and consolidate the statements,
which are reported through the
State-owned Asset Management
Information System.
Monthly consolidated
They should be reported every
statements (including the
month after being printed, signed and
Balance Sheet, the Profit
Controlling sealed and reported every quarter
7 Shenzhen SEG shareholder Statement, the Cash Flow
through the State-owned Asset Monthly The Notice of Shenzhen SEG Co., Ltd. on Submitting Agreed by the Board
Group Co., Ltd. (30.24%) Statement, the Notes to
Management Information System.
of Monthly Statements of Directors
Preparation of the
They began to be reported online
Statements and the
from July 2008.
Financial Statements)
Shenzhen SEG Controlling It was provided by Article Three of the Statistics
Group Co., Ltd. shareholder Law of the People’s Republic of China that state
(30.24%) organs, social organizations, corporations, public
institutions and privately or individually owned
businesses, on which statistical survey is
Statistical survey on the
implemented, must comply with the Statistics Law Agreed by the Board
statements or monthly and Monthly and the regulations of the state and provide of Directors
8 annual reports of the Sealed by the Company
and annually statistical data faithfully but not make a false report,
production of electronics
Shenzhen Government conceal data, refuse to report, delay the report, or
information industry
Statistics Bureau branch fabricate or falsify data. Self-governing mass
organizations at the grass roots level and citizens
have the obligation to provide truthfully the
information required by the statistical survey of the
state.
The Notice on Matters about Preparation of
Controlling Monthly Financial Flash Reports by Enterprises Agreed by the Board
Shenzhen SEG Summary sheet of of Directors
9 Group Co., Ltd. shareholder quarterly financial assets
Sealed by the Company Quarterly under Supervision and Administration of SASAC, the
(30.24%) file of SASAC of the State Council (GUO ZI TING
PING JIA [ [2003] No. 23 )
33
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
2. In this report period, according to the requirements of the Notice on Further Implementing Cash Bonus Related Matters of
Listed Companies issued by the China Securities Regulatory Commission and the Notice on Seriously Implementing the
Requirements of the Notice on Further Implementing the Cash Bonus Related Matters of Listed Companies (SHEN ZHEN JU
GONG SI ZI [2012] No. 43) (hereinafter referred to as the Notice) issued by the Shenzhen Securities Regulatory Bureau, the
Company actively organized controlling shareholders, directors, supervisors and senior executives to learn the essence and
implement the requirements of the Notice. Meanwhile, the Company formulated the Work Program of Seriously Implementing
Cash Bonus Related Matters and designated Wang Li, the chairman, as the primary owner and Liu Zhijun, the director and
general manager, as the direct owner. The Secretary’s Office of the Board of Directors is the executive body.
In accordance with the requirements of the Notice, the Company, in consideration of its actual situations, has fully
communicated with independent directors and some shareholders of tradable shares on formulating a shareholder return plan
and profit distribution policy. The Company made a special research on the soundness of the decision-making procedure and
mechanism of the shareholder return plan, profit distribution, especially cash bonus matters, specified a cash bonus
decision-making procedure that is suitable for the future development of the Company and formed a research report.
Meanwhile, the Company, according to the results of the research report, has formulated its shareholder return plan for the next
three years (from 2012 to 2014) and modified some terms like the profit distribution policy in the Articles of Association.
The preceding Research Report of Shenzhen SEG Co., Ltd. on the Shareholder Return Plan has approved at the ninth meeting
of the fifth Board of Directors on July 23, 2012. The Shareholder Return Plan of Shenzhen SEG Co., Ltd. in the Next Three
Years from 2012 to 2014 and the Proposal about Modifying the Articles of Association have deliberated and approved at the
first extraordinary shareholders meeting of 2012 on August 9, 2012.
3. The progress of constructing internal control standards by the Company in this report period is as follows:
In this report period, according to the overall deployment of the five ministries and commissions like the Ministry of Finance
and the China Securities Regulatory Commission on promoting listed companies to implement basic internal control standards,
the spirit of the video conference of the China Securities Regulatory Commission about mobilizing and deploying the internal
control standards in the capital market, and the requirements of the Notice on Managing Pilot Listed Companies in
Implementing the Internal Control Standards in Shenzhen (SHEN ZHEN JU GONG SI ZI [2011] No. 31) issued by the
Shenzhen Securities Regulatory Bureau, the company was listed as one of the 83 pilot units in internal control in Shenzhen and
initiated the construction project of internal control standards in March 2011.The Board of Directors and managers attached
great importance to the work, organized directors, supervisors, senior executives and relevant staff of each functional
department to learn the Basic Standards for Enterprise Internal Control and related guidelines, and actively constructed the
internal control system for the Company. The Company formulated the Work Plan of Shenzhen SEG Co., Ltd. on Implementing
Corporate Internal Control Standards (hereinafter referred to as Internal Control Work Plan) which was approved at the tenth
special meeting of the fifth Board of Directors held on April 28, 2011 and was disclosed on the Cninfo website on April 30,
2011. During this report period, the progress of the internal control work of the Company was as follows:
(1) The Proposal about Adding Content to the Work Plan of Shenzhen SEG Co., Ltd. on Implementing Corporate Internal
Standards was deliberated and approved at the 8th Shareholders’ general meeting of the fifth Board of Directors held on
34
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
March 23, 2012. At the meeting, the Company decided to modify the preceding Internal Control Work Plan that was
published on the Cninfo website on April 30, 2011 by including Shenzhen SEG Nanjing Electronics Market Management
Co., Ltd. which was a share-holding subsidiary established in 2011 and Shenzhen SEG Electronics Market Management
Co., Ltd. into the second batch of major internal control construction units, and by adding the third batch of major
internal control construction units. Modifications of the Internal Control Work Plan are as follows:
The "6. The second batch of major internal control construction units includes Xi'an SEG Electronics Market Co., Ltd.,
Suzhou SEG Electronics Market Co., Ltd., and Changsha SEG Development Co., Ltd. These companies shall start their
internal control construction on January 1, 2012 and complete the work on March 31, 2012." under "III. Internal Control
Construction Work Plan" in the Internal Control Work Plan. was changed into "6. The second batch of major internal
control construction units includes Xi'an SEG Electronics Market Co., Ltd., Suzhou SEG Electronics Market Co., Ltd.,
Changsha SEG Development Co., Ltd., Shenzhen SEG Electronics Market Management Co., Ltd., and the Shenzhen
SEG Nanjing Electronics Market Management Co., Ltd. These companies shall start their internal control construction on
January 1, 2012 and complete the work on June 30, 2012."
The "7. The third batch of major internal control construction units includes Shenzhen SEG Credit Co., Ltd., Xi'an SEG
Electronics Market Co., Ltd., and Shenzhen Mellow Orange Business Hotel Management Co., Ltd. These companies
shall start their internal control construction on March 10, 2012 and complete the work on June 30, 2012." shall be added.
Other content remained unchanged.
The above matter was disclosed on the China Securities Journal, the Securities Times, the Securities Daily and the Hong
Kong Commercial Daily and the Cninfo Website on March 27, 2012.
(2) The Company came up with a defect list for the second batch of major internal control construction units, which have
completed corresponding rectifications at the end of this report period.
(3) The Deloitte & Touche LLP in Shenzhen conducted internal control program planning and process design, internal
control system construction, and internal control system assessment for Shenzhen SEG Credit Co., Ltd. which belongs to
in the third batch of major internal control construction units.
(4) After trained by the internal control promotion group of the Company, Xi'an SEG Electronics Market Co., Ltd. and
Shenzhen Mellow Orange Business Hotel Management Co., Ltd. in the third batch of major internal control construction
units constructed and assessed their internal control systems.
(5) The audit department of the Company audited and checked the internal control work of the third batch of major internal
control construction units.
As of the disclosure date of this report, the progress of the internal control work of the Company was in line with the Internal
Control Work Plan.
The Company assessed the effectiveness of the design and operation of the internal control by the end of June 30, 2012 and
worked out the 2012 Semi-annual Self-evaluation Report of Shenzhen SEG Co., Ltd. on Internal Control. The report was
approved at the tenth meeting of the fifth Board of Directors and published on the Cninfo website on August 27, 2012.
35
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
According to the Board of Directors of the Company, the Company has constructed an internal control system that was related
with the financial report, established the corresponding internal control system for business processes and matters within the
range of internal control assessment by the end of June 30, 2012. By formulating the Internal Control Work Plan, analyzing
and finding risks, analyzing and rectifying defects, revising and improving the internal control system and processes, and
assessing the work of internal control, the Company attained obvious effects in constructing and implementing the internal
control system. The internal control which was complete and reasonable has been effectively implemented and achieved
anticipated objectives. The Company had no major defect in the completeness, rationality and effectiveness of the internal
control system. The existing internal control system of the Company has covered all operational aspects and levels, forming a
relatively complete and normative internal control management system. This ensures the orderly management and effective
operation of the Company, better prevents, controls, discovers and corrects potential or existing operational risks or faults,
effectively protects the safety and completeness of corporate assets, and effectively defends the interest of the Company and its
shareholders. The internal control system of the Company has been effectively implemented.
(II) Implementation of the Profit Distribution Plan, Reserve Capitalizing Plan or New Share
Issuing Plan that were Mapped out in the Prior Period and Implemented in this Report
Period
□ Applicable √ Not applicable
36
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
(III) Major Lawsuits and Arbitrations
√ Applicable □ Not applicable
Disclosure
Amount No. of
Type of the Hearing Date of
Plaintiff Defendant Joint Liability Basic Involved (Ten Execution of Relevant
Lawsuit and Progress Results and Relevant
(Applicant) (Respondent) Undertaker Information Thousand Judgment Provisional
Arbitration Effects Provisional
Yuan) Notice
Notice
Not executed;
Guangzhou SEG Industry has won the first instance. The
Won the still waiting for
SEG Jiajie second instance has finished and SEG Not Not
---- Civil lawsuit 305 first the judgment of
Industry Technology Industry was waiting for the civil judgment applicable applicable
instance the second
Co., Ltd. of the court
instance
No money is involved in major lawsuits and arbitrations of the Company after formulating the annual report of last year.
The amount involved in major outstanding lawsuits and arbitrations that have been incorporated in the annual report of last year was RMB 3,050,000.
No anticipated liabilities are accrued for lawsuits and arbitrations.
Details of the lawsuit and arbitration
Guangzhou Jiajie Technology Co., Ltd. (hereinafter referred to as Guangzhou Jiajie) signed a Purchase Contract with the SEG Industry, a subsidiary of the Company on June 25, 2010. Guangzhou Jiajie
purchased the SYBASE software from SEG Industry and then sold the software. Due to the difference of the representation of the payment terms in the Purchase Contract separately held by SEG
Industry and Guangzhou Jiajie, the two parties had a dispute on the issue of payment. The payment terms under the Purchase Contract include two optional clauses: first, the seller shall issue a full VAT
invoice to the buyer and the buyer shall pay for the goods in full within 60 days after the goods arrives at the delivery place, is powered on for a test run, and is accepted by the buyer (before August 30,
2010); second, the seller shall issue a full VAT invoice to the buyer and the buyer shall pay for the goods in full within seven days after receiving all payment from its users. Both clauses were checked
(√ ) in the Purchase Clause held by SEG Industry. However, only the second clause was checked (√ ) in the Purchase Clause held by Guangzhou Jiajie. Guangzhou Jiajie sold the SYBASE software to
Guangzhou Yushi Information Technology Co., Ltd. (hereinafter referred to as Guangzhou Yushi) who sold the software to end users. Because Guangzhou Yushi has not made payment to Guangzhou
Jiajie, the latter filed a lawsuit against the former. The legal representative of Guangzhou Yushi had migrated to another country. Based on the analysis of the Purchase Contract held by Guangzhou
Jiajie, the prerequisite for the payment by Guangzhou Jiajie is that Guangzhou Jiajie receives the payment from Guangzhou Yushi. According to the lawyer’s opinion, it is very likely that the payment
cannot be recovered. The contract amount is RMB 3,052,571.00, for which RMB 3,022,045.29, or 99% of the amount, was accrued as bad debt provision at the end of 2011. The Company had
submitted the preceding dispute to the Court, which opened a session on December 28, 2011 and made the first instance judgment on February 14, 2012.The judgment was that the plaintiff SEG
Industry won the lawsuit and the defendant Guangzhou Jiajie shall pay to the plaintiff RMB 3,052,571. The court rejected other claims of the plaintiff. Guangzhou Jiajie refused to obey the first instance
judgment and appealed to the higher court, which had accepted the appeal. At present, the second instance had finished and we are waiting for the civil judgment of the court.
37
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
(IV) Bankruptcy and Reorganization Related Matters
□ Applicable √ Not applicable
(V) Equities of Other Listed Companies and Financial Enterprises Held by the Company
1. Investment in securities
□ Applicable √ Not applicable
Information about securities investment
2. Equity of other listed companies held by the Company
√ Applicable □ Not applicable
Proportion Gains and Changes in
Short form
Securities Initial investment in equity of Ending book losses in this owners’ Source of
of the Account
code cost (Yuan) the value (Yuan) report period equity in this shares
securities
company (Yuan) report period
Financial
Youhao assets
600778 90,405.00 0.04% 682,076.92 70,999.11 Initial share
Group available for
sale
Long-term
ST
000068 279,307,046.38 22.45% 109,341,240.49 -475,507.86 -475,507.86 equity Initial share
Samsung
investment
Total 279,397,451.38 -- 110,023,317.41 -475,507.86 -404,508.75 -- --
Description of the equity of other listed companies held by the Company
The first release of ST Samsung's restricted tradable shares held by the Company was on March 4, 2009 and the second was finished
by the Company on March 23, 2010, adding 44,833,600 new tradable shares. On February 16, 2011, the Company completed the
third release, which added 120,091,790 tradable shares to the Company. The Company didn't sell the shares of ST Samsung in this
report period.
3. Equity of unlisted financial enterprises held by the Company
□ Applicable √ Not applicable
Description about the equity of unlisted financial enterprises held by the Company
4. Shares of other listed companies dealt by the Company
□ Applicable √ Not applicable
38
2012 Semi-annual Report of Shenzhen SEG Co., Ltd.
Description about the shares of other listed companies dealt by the Company
(VI) Asset Transaction
1. Asset acquisition
□ Applicable √ Not applicable
Information on asset acquisition
2. Asset sales
□ Applicable √ Not applicable
Information on asset sales
3. Asset replacement
□ Applicable √ Not applicable
Information on asset replacement
4. Merger of enterprises
√ Applicable □ Not applicable
5. Progress of this matter and its influences on operating results and financial status in this report period
after publishing the asset reorganization report or the notice of purchasing sold assets
□ Applicable √ Not applicable
(VII) Share Increasing Plan Put Forward or Implemented by the Major Shareholders and
Concerted Actors of the Company
□ Applicable √ Not applicable
(VIII) Implementation of the Equity Incentive Plan and Its Influences
□ Applicable √ Not applicable
(IX) Major Related Transactions
39
深圳赛格股份有限公司 2012 年半年度报告全文
1. Related transactions relating to daily operation
√ Applicable □ Not applicable
Percentage of Reasons for the
related major
Price (Ten Amount (Ten transaction Influences on Market price differences
Type of Transaction Pricing Settlement
Related parties Relations Thousand Thousand amount to the corporate (Ten Thousand between
transactions contents principle ways
Yuan) Yuan) similar profits Yuan) trading price
transaction and market
amount (%) reference price
As per
Shenzhen SEG Controlling Lease of real Lease of real Follow market No major
25.8 0.14% agreements and
Group Co., Ltd. shareholder estate estate price influence
contracts
Total -- -- 25.8 -- -- -- --
Details about sales returns in large amount None
The necessity and continuity of related transactions and the
reasons of trading with related parties (as opposed to other It is the continuous business in the daily operation, ensuring the normal operating activities of the Company.
transaction parties in the market)
Influences of related transactions on the independence of listed
No adverse influence
companies
Dependence of the Company on related parties and relevant
None
solutions (if any)
If the Company forecasts the total amount of daily related
transaction happened in the current year based on the
The predicted amount of related transactions is RMB 1,000,000 in 2012.
classification, it shall disclose the actual implementation of such
daily related transactions in this report period.
Description on related transactions It is decided at the eighth meeting of the fifth Board of Directors held on March 23, 2012.
Related transactions related relating to daily operation
40
深圳赛格股份有限公司 2012 年半年度报告全文
Sell products and labor services to the related party Purchase products and labor services from the related party
Related party: Percentage of the amount of related Percentage of the amount of related
Transaction amount (Ten Thousand Transaction amount (Ten Thousand
transactions to the similar transaction transactions to the similar transaction
Yuan) Yuan)
amount (%) amount (%)
Shenzhen SEG Group Co., Ltd. 25.8 0.14%
Total 25.8 0.14%
Including: the related transaction amount of product sales or labor service offering of the Company to its subsidiaries in this report period was RMB 258,000.
2. Transactions related with asset acquisition and sales
□ Applicable √ Not applicable
3. Major transactions related with joint foreign investment
□ Applicable √ Not applicable
4. Associated creditor’s rights and liabilities
√ Applicable □ Not applicable
Whether there are non-operating associated creditor’s rights and liabilities?
□ Yes □ No
41
深圳赛格股份有限公司 2012 年半年度报告全文
Capital provided to the listed company by the related party (Ten Thousand
Capital provided to the related party (Ten Thousand Yuan)
Yuan)
Related party Relations
Period- Amount Period-end Interest Interest Period-beginni Amount Period-end Interest Interest
Payment Payment
beginning balance incurred balance income expenses ng balance incurred balance income expenses
Non-operating
Total
Operating
Shareholders’
Shenzhen SEG Property Management Co., Ltd. 0.2 0.2
subsidiary
Controlling
Shenzhen SEG Group Co., Ltd. 8.6 25.8 25.8 8.6
shareholder
Total 8.8
The Amount incurred of the capital provided by the company to the
controlling shareholder and its subsidiaries in this report period (Ten 25.8
Thousand Yuan)
Including: Non-operating Amount incurred (Ten Thousand Yuan))
The balance of the capital provided by the company to the controlling
8.8
shareholder and its subsidiaries in this report period (Ten Thousand Yuan)
Including: Non-operating balance (Ten Thousand Yuan))
Causes of associated creditor’s rights and liabilities Mainly caused by deposits, incomings and outgoings, loans and interests
Payment of associated creditor’s rights and liabilities None
Commitments related to associated creditor’s rights and liabilities None
Influences of associated creditor’s rights and liabilities on the operational
Little
results and financial status of the Company
Information on fund appropriation and the repayment progress in this report period
□ Applicable √ Not applicable
Accountability plan proposed by the Board of Directors in the case of unsettled non-operating capital occupancy by the listed company was not fulfilled by the end of the report period.
□ Applicable √ Not applicable
42
深圳赛格股份有限公司 2012 年半年度报告全文
5. Other major related transactions
(X) Major Contracts and Their Fulfillment
1. Entrust, contract and lease matters that bring the Company a profit taking up over 10% of the total
profit earned in this period
(1) Entrust
□ Applicable √ Not applicable
(2) Contract
□ Applicable √ Not applicable
(3) Lease
□ Applicable √ Not applicable
2. Guarantee
□ Applicable √ Not applicable
43
深圳赛格股份有限公司 2012 年半年度报告全文
3. Entrusted financial management
√ Applicable □ Not applicable
Unit: RMB Ten Thousand Yuan
Name of Entrusted Remuneration Actually Actual income By legal Accrual of Related
trustee amount Start date End date confirmation redeemed for this period Actual income procedure or impairment transaction or Relations
principal not provision not
Bank of China 2,400.00 2011-11-11 2012-2-13 Agreement 2,400.00 29.05 Yes None No None
Bank of China 1,200.00 2011-11-24 2012-1-31 Agreement 1,200.00 12.3 Yes None No None
Bank of China 6,018.00 2012-1-4 2012-2-6 Agreement 6,018.00 29.38 Yes None No None
Bank of China 5,000.00 2012-1-13 2012-2-6 Agreement 5,000.00 17.75 Yes None No None
Bank of China 1,600.00 2012-1-13 2012-2-13 Agreement 1,600.00 7.07 Yes None No None
Bank of China 1,200.00 2012-1-31 2012-2-6 Agreement 1,200.00 0.71 Yes None No None
Bank of China 12,278.00 2012-2-7 2012-3-19 Agreement 12,278.00 78.61 Yes None No None
Bank of China 4,000.00 2012-2-16 2012-3-22 Agreement 4,000.00 16.88 Yes None No None
Bank of China 12,400.00 2012-3-20 2012-6-29 Agreement 12,400.00 181.85 Yes None No None
Bank of China 4,500.00 2012-3-22 2012-3-31 Agreement 4,500.00 3.72 Yes None No None
Bank of China 4,500.00 2012-4-1 2012-6-29 Agreement 4,500.00 60.35 Yes None No None
Bank of China 4,500.00 2012-6-29 2012-7-31 Agreement Yes None No None
Industrial and None None
Commercial 2,000.00 2012-1-6 2012-7-3 Agreement Yes No
Bank of China
Industrial and None None
Commercial 3,000.00 2012-1-19 2012-7-17 Agreement Yes No
Bank of China
Industrial and None None
Commercial 800.00 2012-4-25 2012-7-23 Agreement Yes No
Bank of China
Industrial and None None
Commercial 600.00 2012-5-17 2012-8-14 Agreement Yes No
Bank of China
44
深圳赛格股份有限公司 2012 年半年度报告全文
Name of Entrusted Remuneration Actually Actual income By legal Accrual of Related
trustee amount Start date End date confirmation redeemed for this period Actual income procedure or impairment transaction or Relations
principal not provision not
Industrial and Agreement None None
Commercial 1,000.00 2011-11-25 2012-1-31 1,000.00 9.18 Yes No
Bank of China
Industrial and Agreement None None
Commercial 1,000.00 2012-2-7 2012-4-5 1,000.00 8.1 Yes No
Bank of China
Industrial and Agreement None None
Commercial 1,000.00 2012-4-10 2012-6-28 1,000.00 10.61 Yes No
Bank of China
Bank of China 4,400.00 2011-12-30 2012-1-9 Agreement 4,400.00 7.03 Yes None No None
Bank of China 4,300.00 2011-12-30 2012-1-9 Agreement 4,300.00 6.87 Yes None No None
Bank of China 4,300.00 2011-12-30 2012-1-9 Agreement 4,300.00 6.87 Yes None No None
Bank of China 12,000.00 2012-1-9 2012-2-9 Agreement 12,000.00 58.09 Yes None No None
Bank of China 1,000.00 2012-1-9 2012-1-16 Agreement 1,000.00 0.79 Yes None No None
Bank of China 1,000.00 2012-1-16 2012-2-1 Agreement 1,000.00 2.28 Yes None No None
Industrial and Agreement None None
Commercial 550.00 2012-1-21 2012-1-31 550.00 0.36 Yes No
Bank of China
Bank of China 1,000.00 2012-2-1 2012-2-13 Agreement 1,000.00 1.38 Yes None No None
Bank of China 10,000.00 2012-2-9 2012-3-9 Agreement 10,000.00 45.29 Yes None No None
Industrial and Agreement None None
Commercial 1,000.00 2012-2-10 2012-3-14 1,000.00 4.34 Yes No
Bank of China
Bank of China 1,080.00 2012-2-10 2012-2-13 Agreement 1,080.00 0.18 Yes None No None
Bank of China 1,083.00 2012-2-14 2012-2-29 Agreement 1,083.00 1.60 Yes None No None
Bank of China 1,085.00 2012-3-9 2012-4-9 Agreement 1,085.00 0.66 Yes None No None
Bank of China 4,500.00 2012-3-9 2012-4-9 Agreement 4,500.00 20.58 Yes None No None
Bank of China 4,500.00 2012-3-9 2012-4-9 Agreement 4,500.00 20.58 Yes None No None
Industrial and Agreement None None
Commercial 1,000.00 2012-3-12 2012-3-20 1,000.00 0.48 Yes No
Bank of China
45
深圳赛格股份有限公司 2012 年半年度报告全文
Name of Entrusted Remuneration Actually Actual income By legal Accrual of Related
trustee amount Start date End date confirmation redeemed for this period Actual income procedure or impairment transaction or Relations
principal not provision not
Bank of China 2,000.00 2012-4-9 2012-4-11 Agreement 2,000.00 0.36 Yes None No None
Bank of China 6,000.00 2012-4-9 2012-4-17 Agreement 6,000.00 4.60 Yes None No None
Bank of China 2,000.00 2012-4-11 2012-4-13 Agreement 2,000.00 0.36 Yes None No None
Bank of China 2,000.00 2012-4-13 2012-4-17 Agreement 2,000.00 0.72 Yes None No None
Bank of China 4,000.00 2012-4-17 2012-4-26 Agreement 4,000.00 3.16 Yes None No None
Bank of China 4,000.00 2012-4-17 2012-4-26 Agreement 4,000.00 3.16 Yes None No None
Bank of China 4,000.00 2012-4-26 2012-4-28 Agreement 4,000.00 0.70 Yes None No None
Bank of China 4,000.00 2012-4-26 2012-4-28 Agreement 4,000.00 0.70 Yes None No None
Bank of China 4,000.00 2012-4-28 2012-5-3 Agreement 4,000.00 1.73 Yes None No None
Bank of China 4,000.00 2012-4-28 2012-5-3 Agreement 4,000.00 1.73 Yes None No None
Bank of China 3,000.00 2012-5-3 2012-5-11 Agreement 3,000.00 2.16 Yes None No None
Bank of China 2,000.00 2012-5-3 2012-5-7 Agreement 2,000.00 0.70 Yes None No None
Industrial and Agreement None None
Commercial 4,000.00 2012-5-4 2012-6-8 4,000.00 16.87 Yes No
Bank of China
Bank of China 1,000.00 2012-5-4 2012-5-8 Agreement 1,000.00 0.35 Yes None No None
Bank of China 2,000.00 2012-5-7 2012-5-15 Agreement 2,000.00 1.35 Yes None No None
Bank of China 1,000.00 2012-5-8 2012-5-16 Agreement 1,000.00 0.74 Yes None No None
Bank of China 3,000.00 2012-5-11 2012-5-15 Agreement 3,000.00 0.89 Yes None No None
Bank of China 1,000.00 2012-5-15 2012-5-22 Agreement 1,000.00 0.46 Yes None No None
Industrial and Agreement None None
Commercial 3,000.00 2012-5-16 2012-7-10 3,000.00 16.27 Yes No
Bank of China
Bank of China 1,000.00 2012-5-22 2012-5-24 Agreement 1,000.00 0.11 Yes None No None
Bank of China 1,000.00 2012-5-25 2012-5-29 Agreement 1,000.00 0.24 Yes None No None
Bank of China 1,000.00 2012-5-29 2012-5-30 Agreement 1,000.00 0.05 Yes None No None
Bank of China 1,000.00 2012-5-30 2012-6-6 Agreement 1,000.00 0.48 Yes None No None
Bank of China 1,010.00 2012-6-4 2012-6-18 Agreement 1,010.00 1.05 Yes None No None
46
深圳赛格股份有限公司 2012 年半年度报告全文
Name of Entrusted Remuneration Actually Actual income By legal Accrual of Related
trustee amount Start date End date confirmation redeemed for this period Actual income procedure or impairment transaction or Relations
principal not provision not
Bank of China 1,000.00 2012-6-6 2012-6-8 Agreement 1,000.00 0.11 Yes None No None
Bank of China 1,000.00 2012-6-8 2012-6-18 Agreement 1,000.00 0.69 Yes None No None
Industrial and Agreement None None
Commercial 3,000.00 2012-6-12 2012-7-23 3,000.00 6.66 Yes No
Bank of China
Bank of China 2,010.00 2012-6-18 2012-6-26 Agreement 2,010.00 1.08 Yes None No None
Bank of China 2,014.00 2012-6-26 2012-6-28 Agreement 2,014.00 0.34 Yes None No None
Bank of China 1,014.00 2012-6-28 2012-6-29 Agreement 1,014.00 0.15 Yes None No None
Industrial and Agreement None None
Commercial 1,000.00 2012-6-29 2012-8-14 Yes No
Bank of China
Bank of China 1,014.00 2012-6-29 2012-7-3 Agreement Yes None No None
Industrial and Agreement None None
Commercial Bank financial
Bank of China. products that
The Bank of can be
China has no redeemed any 9.13 Yes No
interest income time after
from fixed purchasing
deposits.
Industrial and Agreement None None
Commercial 1,000.00 2011-11-16 2012-1-31 1,000.00 10.61 Yes No
Bank of China
Bank of China 1,000.00 2011-2-1 2012-6-29 Agreement 1,000.00 23.28 Yes None No None
Bank of China 1,500.00 2012-2-22 2013-2-27 Agreement Yes None No None
Industrial and Agreement None None
Commercial 500.00 2012-3-13 2012-9-10 Yes No
Bank of China
Industrial and Agreement None None
Commercial 300.00 2012-4-16 2012-6-11 300.00 1.66 Yes No
Bank of China
Industrial and Agreement None None
Commercial 1,500.00 2011-12-31 2012-2-1 1,500.00 6.52 Yes No
Bank of China
47
深圳赛格股份有限公司 2012 年半年度报告全文
Name of Entrusted Remuneration Actually Actual income By legal Accrual of Related
trustee amount Start date End date confirmation redeemed for this period Actual income procedure or impairment transaction or Relations
principal not provision not
Industrial and Agreement None None
Commercial 1,000.00 2012-2-8 2012-3-21 1,000.00 5.65 Yes No
Bank of China
Industrial and Agreement None None
Commercial 200.00 2012-2-3 2012-3-26 200.00 1.39 Yes No
Bank of China
Industrial and Agreement None None
Commercial 900.00 2012-4-11 2012-5-21 900.00 4.55 Yes No
Bank of China
Industrial and Agreement None None
Commercial 500.00 2012-6-7 2012-8-6 Yes No
Bank of China
Total -- -- -- 773.70 -- -- --
Accumulated amount of overdue principal and income (Yuan) 0
According to the resolution of the 17th General Meeting of Shareholders (Year 2011) held on April 20, 2012, the Company and its
subsidiaries can purchase short- and medium-term low risk bank financial products of and under RMB 500,000,000. The capital that
Description of the entrusted financial management does not exceed the preceding limit can be rolled over within three years since the deliberation of the General Meeting of Shareholders.
For details, see the Notice of Shenzhen SEG Co., Ltd. on the Resolutions of the 17th General Meeting of Shareholders (Year 2011)
published on the designated information disclosure media of the Company on April 21, 2012.
The balance of the Company and its subsidiaries after purchasing bank financial products by the end of June 30, 2012 is as follows:
Unit: RMB ten thousand Yuan
Shenzhen Shenzhen Shenzhen SEG Total
Amount of SEG Credit SEG Baohua Electronics
Company
the parent Co., Ltd. Enterprise Market
name company Development Management
Co., Ltd. Co., Ltd.
Amount 10,900.00 8,014.00 2,000.00 500.00 21,414.00
48
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
4. Fulfillment of major contracts in daily operation
√ Applicable □ Not applicable
5. Other major contracts
√ Applicable □ Not applicable
The third meeting of the fifth Board of Directors on September 27, 2010 reviewed and approved the Proposal on A Renewal Loan of
RMB 36,000,000 to Changsha SEG Development Co., Ltd. The Board of Directors of the Company agreed to offer a renewal loan of
RMB 36,000,000 to Changsha SEG, the term being a year and the interest rate being 5.5755%, for which Changsha Xinxing Grand
Hotel owned by Changsha SEG was again mortgaged to the Company. The matter was disclosed on the China Securities Journal, the
Securities Times, the Securities Daily and the Hong Kong Commercial Daily and the Cninfo Website on September 29, 2010. In
accordance with the above-mentioned resolution of the Board of Directors, the Company signed a loan contract with Changsha SEG,
the amount of the loan being RMB 36,000,000 and the term being from October 25, 2010 to October 24, 2011. During the loan term,
Changsha SEG has repaid RMB 12,000,000 to the Company according to the interest rate agreed in the loan contract. The Board of
Directors of Changsha SEG agreed to a renewal loan of RMB 28,000,000 in the form of loan from shareholders, the term being one
year.
For the purpose of supporting the development of Changsha SEG, making full use of the Company's surplus fund, enhancing fund
using efficiency and ensuring the normal operation of Changsha SEG in its growth stage, the 14th temporary meeting of the fifth
Board of Directors of the Company deliberated and approved the Proposal of Offering a Renewal Loan of RMB 28,000,000 to
Changsha SEG Development Co., Ltd. and agreed to offer a renewal loan of RMB 28,000,000 to Changsha SEG, the term being one
year (from September 25, 2011 to September 24, 2012) and the interest rate being 6.56% (bank loan interest rate over the same
period), for which Changsha Xinxing Grand Hotel owned by Changsha SEG was again mortgaged to the Company. In this report
period, Changsha SEG has repaid the principal of RMB 5,000,000 to the Company.
(II) The Proposal of the Company on Offering a Renewal Loan of RMB 22,000,000 to Shenzhen SEG Industrial Investment Co., Ltd.
was deliberated and approved on the seventh meeting of the fifth Board of Directors of the Company on August 12, 2011. According
to the demands of the twelfth five-year strategic development plan for energetically developing innovative businesses and the needs
of SEG Industry for rigorously developing IT channels and IT retail terminal businesses, the Company, who holds 91.79% of the
shares of SEG Industry, agreed to, as per the ownership proportion, lend RMB 22,000,000 to SEG Industry that currently needed
RMB 24,000,000 as working capital, the interest rate being 6.56% (bank loan interest rate over the same period) and the term being
one year (from August 30, 2011 to August 29, 2012).
(XI) Description of Issuing Corporate Bonds
□ Applicable √ Not applicable
(XII) Fulfillment of Commitments
1. Commitments made by the Company or the shareholders holding more than 5% shares, which were
made in or lasted into this report period
√ Applicable □ Not applicable
Commitment Made by Content Time Period Fulfillment
Commitment for share reform N/A
Commitments in the Acquisition N/A
Report and the Report of Changes on
Equity
Commitments made at the time of asset N/A
49
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Commitment Made by Content Time Period Fulfillment
replacement
According to Article Five of the
Equity Transfer Agreement signed
by the Company with SEG Group
when the Company was listed, SEG
Group agreed that the Company and
its subsidiaries and associated
companies could use the eight
Commitments
Shenzhen trademarks registered by SEG Group
Commitments at the time of share were fulfilled
SEG Group at the National Trademark Bureau; Jul 1, 1996 N/A
issuance in this report
Co., Ltd. SEG Group agreed that the
period.
Company could use the aforesaid
trademarks or similar signs as the
Company’s logo and use the
trademarks and signs during its
operation; the Company needn’t pay
any fee to SEG Group for using the
aforesaid trademarks or signs.
Other commitments made to the
medium and small shareholders of the N/A
Company
Whether commitments are fulfilled in
√ Yes □ No □ N/A
time?
Specific reasons for unfulfilled
commitments and the next steps
Whether the commitments on
horizontal competition and related √ Yes □ No □ N/A
transactions are made?
Solving period of commitments
1. Shenzhen Securities Regulatory Bureau pointed out during spot inspection that there is an
issue of horizontal competition in the business of Electronics Markets between the Company
and SEG Group; the Company received a Letter of Commitment in writing from SEG Group
on September14, 2007, which said: SEG Group and Shenzhen SEG Co., Ltd. have similar
business in Electronics Markets in Shenzhen, and this is due to historic reasons and the
Solution
objective background of market development. The Group hereby promises that it will not
independently operate a market in a same city whose business is similar with that of
Shenzhen SEG. The aforesaid matter was disclosed on the Securities Times, the China
Securities Journal and the Hong Kong Wen Wei Po and the Cninfo Website on September
18, 2007.
In order to solve the issue of horizontal competition between the Company and its
controlling shareholder, SEG Group, due to historical reasons, the sixth temporary meeting
of the fifth Board of Directors held on January 26, 2011 reviewed and approved the Proposal
of Solving the Horizontal Competition between the Company and Its Controlling
Shareholder. After friendly consultation, SEG Group agreed to entrust the Company to
operate and manage with full authority SEG Communications Market under direct
management of SEG Group. Therefore, the two parties have signed an entrustment operation
and management contract: (1) SEG Group has the ownership and the income right of SEG
Communication Market and assumes all creditor's rights and liabilities incurred during the
Fulfillment of commitments operation of SEG Communications Market. (2) The management representative from the
Company shall operate and manage SEG Communications Market during the period of
entrusted operation and management, who has a sufficient authority in operation and
management of SEG Communications Market. (3) In accordance with the provisions of the
Company on entrusted management of electronics markets and with full consideration to the
maturity of the entrusted market and whether the market is located in a primary business
area, the Company shall collect from SEG Group the following management fee and profit
fee based on the market fair value: the total income of SEG Communications Market in
2010, RMB 20,000,000, shall be regarded as the base number; the Company shall collect a
management fee of RMB 200,000 should the total income of the market in the current year
is equal to or less than RMB 20,000,000; the Company shall take 20% from the part beyond
50
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Commitment Made by Content Time Period Fulfillment
the base number apart from the management fee (RMB 200,000) should the total income in
the current year exceed RMB 20,000,000. The detailed information about the
above-mentioned matter may be referred to in the Public Notice on Shenzhen SEG Co., Ltd.
on the Related Transaction for the Purpose of Solving the Issue of Horizontal Competition
between the Company and the Controlling Shareholder that was disclosed on the China
Securities Journal, the Securities Times, the Hong Kong Commercial Daily and the Cninfo
Website on January 28, 2011. The Company has received the market management fee of
RMB 200,000 paid by SEG Group on schedule in 2011 and 2012. Therefore, there is no
longer the issue of horizontal competition between the Company and SEG Group.
2. The attainment of forecasts for the assets or projects of the Company which were profitable and the
description of the reasons with this report period remaining in the forecasting period .
□ Applicable √ Not applicable
(XIII) Other Comprehensive Income
Unit: RMB Yuan
Amount of the previous
Item Amount of this period
period
1. Gains (losses) from financial assets available for sale 94,665.48 -64,323.98
Less: influence of income tax incurred from financial assets available
-23,666.37 -15,437.76
for sale
Net gains and losses recorded into other consolidated income in the
previous period and transferred back in this period
Subtotal 70,999.11 -48,886.22
2. Enjoyed shares of other consolidated income of invested unit by the
equity method
Less: influence on income tax by enjoyed shares of other consolidated
income of invested units by the equity method
Net gains and losses recorded into other consolidated income in the
previous period and transferred back in this period
Subtotal
3. Profit (or loss) from hedging instruments of cash flows
Less: influence on income tax by hedging instruments of cash flows
Net gains and losses recorded into other consolidated income in the
previous period and transferred back in this period
Adjusted amount of the initial confirmed amount transferred as hedged
items
Subtotal
4. Translation difference of the financial statements in foreign currency 89,449.29
Less: net gains and losses transferred in from disposal of overseas
assets in this period
Subtotal 89,449.29
5. Others
Less: influence on income tax by others recorded into other
51
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of the previous
Item Amount of this period
period
consolidated income
Net amount of others recorded into other consolidated income in the
previous period and transferred back in this period
Subtotal
Total 70,999.11 40,563.07
(XIV) Registration Form for Investigation, Communication and Interview in this report
period
Types of Received Main content of discussion and the
Time Place Means
received person person materials provided
Asked why the shares of the Company
were suspended and when to resume.
Jan 8, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Jan 9, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Jan 10, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Feb 1, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Feb 2, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Feb 3, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Feb 7, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Feb 8, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Feb 9, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
Feb 13, 2012 At the Company Phone call Individual Investor were suspended and when to resume.
The Company provided the suspension
52
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Types of Received Main content of discussion and the
Time Place Means
received person person materials provided
notice.
Asked why the shares of the Company
were suspended and when to resume.
Feb 16, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Feb 17, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Feb 19, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Feb 21, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Feb 22, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Feb 23, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Feb 24, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Feb 27, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Feb 28, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Feb 29, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Mar 1, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Mar 2, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Mar 5, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
53
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Types of Received Main content of discussion and the
Time Place Means
received person person materials provided
Asked why the shares of the Company
were suspended and when to resume.
Mar 6, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Mar 7, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
Inquired in written were suspended and when to resume.
Mar 8, 2012 At the Company Individual Investor
form The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Mar 9, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Mar 12, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Mar 13, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Mar 14, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Mar 15, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
Inquired in written were suspended and when to resume.
Mar 19, 2012 At the Company Individual Investor
form The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Mar 20, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Mar 21, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Mar 22, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Mar 26, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Mar 27, 2012 At the Company Phone call Individual Investor Asked why the shares of the Company
54
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Types of Received Main content of discussion and the
Time Place Means
received person person materials provided
were suspended and when to resume.
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Mar 28, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Mar 29, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Mar 30, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Apr 9, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Apr 10, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Apr 12, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Apr 16, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Apr 16, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Apr 17, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Apr 18, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Apr 20, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
Apr 24, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
Apr 26, 2012 At the Company Phone call Individual Investor were suspended and when to resume.
The Company provided the suspension
55
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Types of Received Main content of discussion and the
Time Place Means
received person person materials provided
notice.
Asked why the shares of the Company
were suspended and when to resume.
May 7, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
May 8, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
May 10, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
May 11, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
May 14, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
May 15, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
May 17, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
May 18, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
May 22, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
May 23, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
May 25, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
May 28, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
May 29, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
56
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Types of Received Main content of discussion and the
Time Place Means
received person person materials provided
Asked why the shares of the Company
were suspended and when to resume.
May 31, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
June 5, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
June 8, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
11.06.12 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
June 12, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
June 14, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
June 18, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
June 19, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
June 20, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
June 27, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
June 28, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
Asked why the shares of the Company
were suspended and when to resume.
June 29, 2012 At the Company Phone call Individual Investor
The Company provided the suspension
notice.
57
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
(XV) Information about the Employment and Dismissal of Accounting Firms
Is the semi-annual report audited?
□ Yes √ No □ Not applicable
Is another accounting firm employed?
□ Yes √ No □ Not applicable
(XVI) Punishment and Rectification of the Listed Company and its Directors, Supervisors,
Senior Executives, Shareholders, Actual Controllers and Acquirers
□ Applicable √ Not applicable
(XVII) Notes on Other Important Matters
√ Applicable □ Not applicable
(XVIII) Information about the Profitability, Asset Status and Credit Status of the Underwriter
of the Company's Convertible Bonds
(This table is filled in only by the listed companies that issue convertible bonds)
□ Applicable √ Not applicable
(XIX) Information Disclosure Index
Name and Layout of the
Item Journals for Information Publishing Date Website and Retrieving Path
Disclosure
China Securities Journal B009,
Notice on the completion of Input the company code: 000058 into
Securities Times D7, Securities
100% equity transfer of the "Inquiry" field at the home page
Daily E1, Hong Kong January 5, 2012
Shenzhen SEG Logistics Co., of the website: www.cninfo.com.cn
Commercial Daily A9,
Ltd. and check the full text of the notice.
www.cninfo.com.cn
China Securities Journal B021,
Input the company code: 000058 into
Notice on disclosing the 2011 Securities Times D45,
the "Inquiry" field at the home page
annual report of the Company Securities Daily E4, Hong March 23, 2012
of the website: www.cninfo.com.cn
in advance Kong Commercial Daily A20,
and check the full text of the notice.
www.cninfo.com.cn
China Securities Journal B245,
Input the company code: 000058 into
Notice on the resolutions of the Securities Times D35,
the "Inquiry" field at the home page
eighth meeting of the fifth Securities Daily E22, Hong March 27, 2012
of the website: www.cninfo.com.cn
Board of Directors Kong Commercial Daily A24,
and check the full text of the notice.
www.cninfo.com.cn
China Securities Journal B245,
Input the company code: 000058 into
Notice on the resolutions of the Securities Times D35,
the "Inquiry" field at the home page
sixth meeting of the fifth Board Securities Daily E22, Hong March 27, 2012
of the website: www.cninfo.com.cn
of Supervisors Kong Commercial Daily A25,
and check the full text of the notice.
www.cninfo.com.cn
Notice on predicting corporate China Securities Journal B245, Input the company code: 000058 into
daily related transactions in Securities Times D35, March 27, 2012 the "Inquiry" field at the home page
2012 Securities Daily E22, Hong
of the website: www.cninfo.com.cn
Kong Commercial Daily A25,
58
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Name and Layout of the
Item Journals for Information Publishing Date Website and Retrieving Path
Disclosure
www.cninfo.com.cn
and check the full text of the notice.
Notice on asking the General
Meeting of Shareholders to
China Securities Journal B245,
modify the Proposal of Using Input the company code: 000058 into
Securities Times D35,
Self-owned Idle Funds to the "Inquiry" field at the home page
Securities Daily E22, Hong March 27, 2012
Purchase Bank's Financial of the website: www.cninfo.com.cn
Kong Commercial Daily A25,
Products approved on the first and check the full text of the notice.
www.cninfo.com.cn
extraordinary shareholders
meeting in 2011
China Securities Journal B245,
Input the company code: 000058 into
Notice on calling the 17th Securities Times D35,
the "Inquiry" field at the home page
General Meeting of Securities Daily E22, Hong March 27, 2012
of the website: www.cninfo.com.cn
Shareholders (year 2011) Kong Commercial Daily A25,
and check the full text of the notice.
www.cninfo.com.cn
Input the company code: 000058 into
Self-evaluation report on the "Inquiry" field at the home page
www.cninfo.com.cn March 27, 2012
internal control in 2011 of the website: www.cninfo.com.cn
and check the full text of the notice.
Input the company code: 000058 into
Annual report on the work of the "Inquiry" field at the home page
www.cninfo.com.cn March 27, 2012
independent directors in 2011 of the website: www.cninfo.com.cn
and check the full text of the notice.
Input the company code: 000058 into
Annual report on the
the "Inquiry" field at the home page
performance of independent www.cninfo.com.cn March 27, 2012
of the website: www.cninfo.com.cn
directors in 2011
and check the full text of the notice.
Input the company code: 000058 into
the "Inquiry" field at the home page
Full annual report for 2011 www.cninfo.com.cn
of the website: www.cninfo.com.cn
and check the full text of the notice.
China Securities Journal B245,
Input the company code: 000058 into
Securities Times D35,
Summary of the annual report the "Inquiry" field at the home page
Securities Daily E22, Hong March 27, 2012
2011 of the website: www.cninfo.com.cn
Kong Commercial Daily A23,
and check the full text of the notice.
www.cninfo.com.cn
Notice on adding temporary China Securities Journal B005,
Input the company code: 000058 into
proposals and supplementary Securities Times D17,
the "Inquiry" field at the home page
notices to the 17th General Securities Daily E2, Hong April 10, 2012
of the website: www.cninfo.com.cn
Meeting of Shareholders (year Kong Commercial Daily A21,
and check the full text of the notice.
2011) www.cninfo.com.cn
China Securities Journal A24,
Input the company code: 000058 into
Prompting notice on calling the Securities Times A8, Securities
the "Inquiry" field at the home page
17th General Meeting of Daily E6, Hong Kong April 16, 2012
of the website: www.cninfo.com.cn
Shareholders (year 2011) Commercial Daily A13,
and check the full text of the notice.
www.cninfo.com.cn
China Securities Journal B176,
Input the company code: 000058 into
Notice on the resolutions of the Securities Times B17,
the "Inquiry" field at the home page
17th General Meeting of Securities Daily B6, Hong April 21, 2012
of the website: www.cninfo.com.cn
Shareholders (year 2011) Kong Commercial Daily A10,
and check the full text of the notice.
www.cninfo.com.cn
China Securities Journal B048, Input the company code: 000058 into
Corporate report body for the Securities Times D53, the "Inquiry" field at the home page
April 25, 2012
first quarter of 2012 Securities Daily E18, Hong of the website: www.cninfo.com.cn
Kong Commercial Daily B9, and check the full text of the notice.
59
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Name and Layout of the
Item Journals for Information Publishing Date Website and Retrieving Path
Disclosure
www.cninfo.com.cn
Input the company code: 000058 into
Full corporate report for the the "Inquiry" field at the home page
www.cninfo.com.cn
first quarter of 2012 of the website: www.cninfo.com.cn
and check the full text of the notice.
China Securities Journal B013,
Input the company code: 000058 into
Notice on the resolutions of the Securities Times B5, Securities
the "Inquiry" field at the home page
21st special meeting of the fifth Daily A4, Hong Kong May 12, 2012
of the website: www.cninfo.com.cn
Board of Directors Commercial Daily A9,
and check the full text of the notice.
www.cninfo.com.cn
China Securities Journal B013,
Input the company code: 000058 into
Notice on the project of Securities Times B5, Securities
the "Inquiry" field at the home page
investing in the Suzhou SEG Daily A4, Hong Kong May 12, 2012
of the website: www.cninfo.com.cn
Electronics Market Commercial Daily A9,
and check the full text of the notice.
www.cninfo.com.cn
60
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
VIII. Financial Report
(I) Audit Report
Is the semi-annual report audited?
□ Yes √ No □ Not applicable
(II) Financial Statement
Is it necessary to consolidate financial statements or not?
√ Yes □ No □ Not applicable
Unless otherwise specified, the unit of amount in the financial statement of the report is RMB Yuan.
The unit of amount in the financial notes is RMB Yuan.
1. Consolidated balance sheet
Prepared by: Shenzhen SEG Co., Ltd.
Unit: Yuan
Item Note Period-end balance Period-beginning balance
Current assets:
Monetary capital 579,166,521.47 644,439,198.78
Deposit reservation for balance 0.00 0.00
Loans to banks and other
0.00 0.00
financial institutions
Trading financial assets 0.00 0.00
Notes receivable 0.00 0.00
Accounts receivable 14,458,092.59 10,372,667.62
Advances 39,095,723.99 33,776,814.71
Premiums receivable 0.00 0.00
Reinsurance accounts receivable 0.00 0.00
Reinsurance deposit receivable 0.00 0.00
Interest receivable 0.00 0.00
Dividends receivable 0.00 426,516.21
Other receivables 18,597,646.66 21,010,718.77
Redemptory financial assets for
0.00 0.00
sale
Inventory 2,244,289.41 633,555.08
Non-current assets due within
0.00 0.00
one year
Other current assets 214,140,000.00 201,000,000.00
61
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Item Note Period-end balance Period-beginning balance
Total current assets 867,702,274.12 911,659,471.17
Non-current assets:
Entrusted loans and advances
67,825,995.27 3,534,300.00
issued
Financial assets available for
682,076.92 587,411.44
sale
Held-to-maturity investment 0.00 0.00
Long-term accounts receivable 0.00 0.00
Long-term equity investment 132,525,159.12 132,408,004.59
Investment properties 509,400,902.24 518,939,370.27
Fixed assets: 44,744,015.37 45,927,045.74
Construction in progress 0.00 42,750.00
Engineering materials 0.00 0.00
Disposal of fixed assets 0.00 0.00
Productive biological assets 0.00 0.00
Oil & gas assets 0.00 0.00
Intangible assets 505,802.28 561,441.87
Development expenses 0.00 0.00
Goodwill 10,328,927.82 10,328,927.82
Long-term expenses to be
38,380,284.41 39,825,875.17
apportioned
Deferred income tax assets 9,770,179.28 9,770,179.28
Other non-current assets 0.00 0.00
Total non-current assets 814,163,342.71 761,925,306.18
Total assets 1,681,865,616.83 1,673,584,777.35
Current liabilities:
Short-term loans 0.00 0.00
Loans from the Central Bank 0.00 0.00
Deposits attracted and accounts
due to banks and other financial 0.00 0.00
institutions
Loans from banks and other
0.00 0.00
financial institutions
Trading financial liabilities 0.00 0.00
Notes payable 0.00 0.00
Accounts payable 5,962,936.90 13,047,530.24
Advances from customers 146,499,109.28 158,171,642.48
Financial assets sold for
0.00 0.00
repurchase
62
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Item Note Period-end balance Period-beginning balance
Commissions payable 0.00 0.00
Wages payable 5,610,736.06 10,318,172.65
Taxes payable 19,369,919.77 36,930,773.40
Interest payable 0.00 0.00
Dividends payable 2,270,089.32 1,466,295.43
Other accounts payable 127,607,182.84 110,869,162.89
Reinsurance accounts payable 0.00 0.00
Insurance deposit 0.00 0.00
Acting trading securities 0.00 0.00
Acting underwriting securities 0.00 0.00
Non-current liabilities due within
0.00 0.00
one year
Other current liabilities 260,000.00 0.00
Total current liabilities 307,579,974.17 330,803,577.09
Non-current liabilities:
Long-term loans 0.00 0.00
Bonds payable 0.00 0.00
Long-term accounts payable 0.00 0.00
Special payables 0.00 0.00
Anticipation liabilities 0.00 0.00
Deferred income tax liabilities 19,889,717.13 20,420,513.70
Other non-current liabilities 0.00 0.00
Total non-current liabilities 19,889,717.13 20,420,513.70
Total liabilities 327,469,691.30 351,224,090.79
Owners' equity (or shareholders'
equity):
Paid-up capital (or share capital) 784,799,010.00 784,799,010.00
Capital public reserve 407,037,724.18 406,990,452.97
Less: treasury shares 0.00 0.00
Special reserve 0.00 0.00
Surplus public reserve 102,912,835.67 102,912,835.67
General risk provision 0.00 0.00
Retained profits -110,385,156.04 -142,006,368.05
Translation difference of the
financial statements in foreign 0.00 0.00
currency
Total owners' equity attributable
1,184,364,413.81 1,152,695,930.59
to the parent company
63
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Item Note Period-end balance Period-beginning balance
Minority shareholders' equity 170,031,511.72 169,664,755.97
Owners' equity (shareholders'
1,354,395,925.53 1,322,360,686.56
equity)
Total liabilities and owner's equity
1,681,865,616.83 1,673,584,777.35
(or shareholders' equity)
Legal representative: Wang Li Person in charge of accounting: Li Lifu Accounting institution head: Ying Huadong
2. Balance sheet of the parent company
Unit: Yuan
Item Note Period-end balance Period-beginning balance
Current assets:
Monetary capital 456,964,321.24 510,486,998.56
Trading financial assets 0.00 0.00
Notes receivable 0.00 0.00
Accounts receivable 366,600.00 360,000.00
Advances 248,095.00 35,295.00
Interest receivable 0.00 0.00
Dividends receivable 6,153,749.71 405,190.40
Other receivables 57,817,908.53 64,833,774.55
Inventory 0.00 0.00
Non-current assets due within
0.00 0.00
one year
Other current assets 109,000,000.00 36,000,000.00
Total current assets 630,550,674.48 612,121,258.51
Non-current assets:
Financial assets available for
0.00 0.00
sale
Held-to-maturity investment 0.00 0.00
Long-term accounts receivable 0.00 0.00
Long-term equity investment 341,752,658.16 341,635,503.63
Investment properties 321,488,774.65 326,741,292.61
Fixed assets: 21,448,095.98 21,203,518.79
Construction in progress 0.00 42,750.00
Engineering materials 0.00 0.00
Disposal of fixed assets 0.00 0.00
Productive biological assets 0.00 0.00
Oil & gas assets 0.00 0.00
64
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Intangible assets 284,199.24 321,593.46
Development expenses 0.00 0.00
Goodwill 0.00 0.00
Long-term expenses to be
2,075,707.24 1,638,270.44
apportioned
Deferred income tax assets 6,658,082.67 6,658,082.67
Other non-current assets
Total non-current assets 693,707,517.94 698,241,011.60
Total assets 1,324,258,192.42 1,310,362,270.11
Current liabilities:
Short-term loans 0.00 0.00
Trading financial liabilities 0.00 0.00
Notes payable 0.00 0.00
Accounts payable 0.00 2,423,946.62
Advances from customers 68,208,164.34 81,070,594.02
Wages payable 1,477,735.15 5,107,972.59
Taxes payable 15,250,967.95 34,275,065.86
Interest payable 0.00 0.00
Dividends payable 119,803.29 119,803.29
Other accounts payable 60,782,189.09 39,829,376.42
Non-current liabilities due within
0.00 0.00
one year
Other current liabilities 0.00 0.00
Total current liabilities 145,838,859.82 162,826,758.80
Non-current liabilities:
Long-term loans 0.00 0.00
Bonds payable 0.00 0.00
Long-term accounts payable 0.00 0.00
Special payables 0.00 0.00
Anticipation liabilities 0.00 0.00
Deferred income tax liabilities 0.00 0.00
Other non-current liabilities 0.00 0.00
Total non-current liabilities 0.00 0.00
Total liabilities 145,838,859.82 162,826,758.80
Owners' equity (or shareholders'
equity):
Paid-up capital (or share capital) 784,799,010.00 784,799,010.00
Capital public reserve 404,980,399.08 404,980,399.08
65
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Less: treasury shares 0.00 0.00
Special reserve 0.00 0.00
Surplus public reserve 102,912,835.67 102,912,835.67
General risk provision
Retained profits -114,272,912.15 -145,156,733.44
Translation difference of the
financial statements in foreign 0.00
currency
Owners' equity (shareholders'
1,178,419,332.60 1,147,535,511.31
equity)
Total liabilities and owner's equity
1,324,258,192.42 1,310,362,270.11
(or shareholders' equity)
3. Consolidated profit statement
Unit: Yuan
Item Note Amount of the current period Amount of the previous period
I. Total operating income 241,988,628.19 203,405,221.49
Including: operating income 235,045,756.04 203,405,221.49
Interest income 6,942,872.15 0.00
Earned premiums 0.00 0.00
Commissions income 0.00 0.00
II. Total operating cost 201,083,552.54 158,687,248.43
Including: operating cost 175,042,563.79 139,750,385.92
Interest expenses 0.00 0.00
Commissions 0.00 0.00
Surrender value 0.00 0.00
Net compensation pay-outs 0.00 0.00
Net insurance deposit accrued 0.00 0.00
Insurance dividends 0.00 0.00
Reinsurance expenses 0.00 0.00
Operating tax and surcharges 9,794,018.20 8,072,822.01
Sale expenses 533,710.91 1,413,793.99
Management expenses 20,248,784.19 14,315,774.07
Financial expenses -5,185,253.01 -4,865,527.56
Loss from asset impairment 649,728.46 0.00
Plus: income from change in fair
0.00 0.00
value (Loss is marked with "-")
Income from investment (Loss
7854150.20 -4,552,269.39
is marked with "-")
66
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Item Note Amount of the current period Amount of the previous period
Including: income from
investment in joint ventures and
joint operation enterprises
Income from exchange (Loss is
marked with "-")
III. Operating profits (Loss is
48,759,225.85 40,165,703.67
marked with "-")
Plus: non-operating income 1,774,861.10 362,863.65
Less: non-operating expenses 45,187.76 38,860.86
Including: loss from disposal of
4,034.65
non-current assets
IV. Total profit (Total loss is
50,488,899.19 40,489,706.46
marked with "-")
Less: income tax 12,570,269.04 12,468,026.82
V. Net profit (Net loss is marked
37,918,630.15 28,021,679.64
with "-")
Including: net profit of the
purchased party realized before
the merger
Net profit attributable to
shareholders of the parent 31,621,212.01 26,332,388.35
company
Gains and losses of minority
6,297,418.14 1,689,291.29
shareholders
VI. Earnings per share -- --
(I) Basic earnings per share 0.0403 0.0335
(II) Diluted earnings per share 0.0403 0.0335
VII. Other comprehensive
70,999.11 40,563.07
income
VIII. Total comprehensive income 37,989,629.26 28,062,242.71
Total comprehensive income
attributable to shareholders of 31,668,483.22 26,389,289.19
the parent company
Total comprehensive income
attributable to minority 6,321,146.04 1,672,953.52
shareholders
During the merger of the enterprises under the control of a same entity in the report period, the net profit of the acquired
party realized before the merger was: RMB 0.00 Yuan.
Legal representative: Wang Li Person in charge of accounting: Li Lifu Accounting institution head: Ying Huadong
67
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
4. Profit statement of the parent company
Unit: Yuan
Item Note Amount of the current period Amount of the previous period
I. Operating income 63,626,986.74 59,204,916.88
Less: operating cost 31,897,510.12 19,328,330.04
Operating tax and surcharges 3,570,332.26 3,221,312.54
Sale expenses 0.00 0.00
Management expenses 9,704,466.80 7,931,189.82
Financial expenses -4,550,027.98 -5,289,571.00
Loss from asset impairment 0.00 0.00
Plus: income from change of fair
0.00 0.00
value (Loss is marked with "-")
Income from investment (Loss
14,612,084.00 3,012,802.61
is marked with "-")
Including: income from
investment in joint ventures and 0.00 0.00
joint operation enterprises
II. Operating profits (Loss is
37,616,789.54 37,026,458.09
marked with "-")
Plus: non-operating income 153,872.09 13,346.74
Less: non-operating expenses 4,034.65 5,200.00
Including: loss from disposal of
non-current assets
III. Total profit (Total loss is
37,766,626.98 37,034,604.83
marked with "-")
Less: income tax 6,882,805.69 8,165,232.53
IV. Net profit (Net loss is marked
30,883,821.29 28,869,372.30
with "-")
V. Earnings per share -- --
(I) Basic earnings per share
(II) Diluted earnings per share
VI. Other comprehensive income
VII. Total comprehensive income 30,883,821.29 28,869,372.30
5. Consolidated cash flow statement
Unit: Yuan
Item Amount of the current period Amount of the previous period
I. Cash flow from operating activities
Cash received from selling of
221,033,817.79 203,682,152.70
goods and provision of service
68
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Item Amount of the current period Amount of the previous period
Net increase of customers'
deposits and accounts due to banks 0.00
and other financial institutions
Net increase of loans from the
0.00
Central Bank
Net increase of loans from other
0.00
financial institutions
Cash received from premiums of
0.00
original insurance contracts
Net cash received from
0.00
reinsurance business
Net increase of deposit of the
0.00
insured and investment
Net increase of income from
0.00
disposal of trading financial assets
Cash received from interest and
8,225,159.55
commissions
Net increase of loans from banks
0.00
and other financial institutions
Net increase of redemption capital 0.00 0.00
Tax refunds 0.00 0.00
Other cash received concerning
261,345,666.29 211,913,016.09
operating activities
Subtotal of cash inflow from
490,604,643.63 415,595,168.79
operating activities
Cash paid for purchase of
commodities and acceptance of 126,975,034.43 90,504,542.41
labor services
Net increase of loans to customers
64,954,605.66 0.00
and advances
Net increase of accounts due from
the Central Bank and other financial 0.00 0.00
institutions
Cash paid for compensation
pay-outs of original insurance 0.00 0.00
contracts
Cash paid for interest and
0.00 0.00
commissions
Cash paid as insurance dividends 0.00 0.00
Cash paid to and on behalf of
36,113,074.01 27,144,192.70
employees
Taxes paid 84,239,587.03 62,740,678.74
Other cash paid concerning
229,098,102.08 212,179,822.32
operating activities
Subtotal of cash outflow for
541,380,403.21 392,569,236.17
operating activities
69
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Item Amount of the current period Amount of the previous period
Net cash flow arising from operating
-50,775,759.58 23,025,932.62
activities
II. Cash flow from operating
activities
Cash received from withdrawal of
1,818,825,190.40 0.00
investment
Cash received from investment
7,758,321.48 0.00
income
Net cash received from disposal of
fixed assets, intangible assets and 0.00 35,170.00
other long-term assets
Net cash received from disposal of
subsidiaries and other business 0.00 0.00
units
Other cash received concerning
0.00 0.00
investment activities
Subtotal of cash inflow from
1,826,583,511.88 35,170.00
investment activities
Cash paid for purchase and
construction of fixed assets,
4,821,647.95 11,542,580.52
intangible assets and other
long-term assets
Cash paid for investment 1,831,560,000.00 0.00
Net increase of mortgage loans 0.00 0.00
Net cash paid for acquisition of
subsidiaries and other operating 0.00 0.00
units
Other cash paid concerning
0.00 0.00
operating activities
Subtotal of cash outflow for
1,836,381,647.95 11,542,580.52
investment activities
Net cash flow arising from
-9,798,136.07 -11,507,410.52
investment activities
III. Cash flow from financing
activities:
Cash received from attraction of
0.00 14,700,000.00
investment
Including: cash received by
subsidiaries from investment of 0.00 14,700,000.00
minority shareholders
Cash received from obtainment of
0.00 0.00
loans
Cash received from issuance of
0.00 0.00
bonds
Other cash received concerning
0.00 0.00
financing activities
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Item Amount of the current period Amount of the previous period
Subtotal of cash inflow from
0.00 14,700,000.00
financing activities
Cash paid for repayment of debts 0.00 0.00
Cash paid for distribution of
dividends and profit or repayment of 4,699,115.60 3,898,369.30
interest
Including: Dividends and profit paid
by subsidiaries to minority 0.00 0.00
shareholders
Other cash paid concerning
0.00 0.00
financing activities
Subtotal of cash outflow for
4,699,115.60 3,898,369.30
financing activities
Net cash flow arising from financing
-4,699,115.60 10,801,630.70
activities
IV. Influence of exchange rate
fluctuation on cash and cash 333.94 4,568.72
equivalents
V. Net Increase of cash and cash
-65,272,677.31 22,324,721.52
equivalents
Plus: period-beginning balance of
644,439,198.78 572,818,178.75
cash and cash equivalents
VI. Period-end balance of cash and
579,166,521.47 595,142,900.27
cash equivalents
6. Cash flow statement of the parent company
Unit: Yuan
Item Amount of the current period Amount of the previous period
I. Cash flow from operating activities
Cash received from selling of goods and
60,161,879.30 55,525,539.64
provision of service
Tax refunds 0.00 0.00
Other cash received concerning
98,379,336.24 104,436,013.22
operating activities
Subtotal of cash inflow from operating
158,541,215.54 159,961,552.86
activities
Cash paid for purchase of commodities
15,970,471.14 10,981,611.88
and acceptance of labor services
Cash paid to and on behalf of employees 16,349,616.67 11,753,204.52
Taxes paid 70,896,122.48 51,111,659.38
Other cash paid concerning operating
43,901,282.67 64,855,215.91
activities
Subtotal of cash outflow for operating
147,117,492.96 138,701,691.69
activities
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Item Amount of the current period Amount of the previous period
Net cash flow arising from operating
11,423,722.58 21,259,861.17
activities
II. Cash flow from operating activities
Cash received from withdrawal of
551,365,190.40 0.00
investment
Cash received from investment income 8,341,179.76 9,565,072.00
Net cash received from disposal of fixed
assets, intangible assets and other 0.00 0.00
long-term assets
Net cash received from disposal of
0.00 0.00
subsidiaries and other business units
Other cash received concerning
0.00 0.00
investment activities
Subtotal of cash inflow from investment
559,706,370.16 9,565,072.00
activities
Cash paid for purchase and construction
of fixed assets, intangible assets and 693,104.00 61,149.00
other long-term assets
Cash paid for investment 623,960,000.00 35,300,000.00
Net cash paid for acquisition of
0.00 0.00
subsidiaries and other operating units
Other cash paid concerning operating
0.00 0.00
activities
Subtotal of cash outflow for investment
624,653,104.00 35,361,149.00
activities
Net cash flow arising from investment
-64,946,733.84 -25,796,077.00
activities
III. Cash flow from financing activities:
Cash received from attraction of
0.00 0.00
investment
Cash received from obtainment of loans 0.00 0.00
Cash received from issuance of bonds
Other cash received concerning
0.00 0.00
financing activities
Subtotal of cash inflow from financing
0.00 0.00
activities
Cash paid for repayment of debts 0.00 0.00
Cash paid for distribution of dividends
0.00 33,600.00
and profit or repayment of interest
Other cash paid concerning financing
0.00 0.00
activities
Subtotal of cash outflow for financing
0.00 33,600.00
activities
Net cash flow arising from financing
0.00 -33,600.00
activities
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Item Amount of the current period Amount of the previous period
IV. Influence of exchange rate fluctuation
333.94 0.00
on cash and cash equivalents
V. Net Increase of cash and cash
-53,522,677.32 -4,569,815.83
equivalents
Plus: period-beginning balance of cash
510,486,998.56 451,763,240.33
and cash equivalents
VI. Period-end balance of cash and cash
456,964,321.24 447,193,424.50
equivalents
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
7. Consolidated statement on changes of owners' equity
Amount of the current period
Unit: Yuan
Amount of the current period
Owners' equity attributable to the parent company
Item Minority
Paid-up Capital Less: Surplus Total owners'
Special General risk shareholders'
capital (or public treasury public Retained profits Others equity
reserve provision equity
share capital) reserve shares reserve
I. Ending balance of the previous
year
Plus: change due to alteration
of accounting policies
Correction of errors of the
previous period
Others
102,91
II. Beginning balance of the 784,799,010. 406,990,45 1,322,360,686.5
2,835.6 -142,006,368.05 169,664,755.97
current year 00 2.97 6
7
III. Increase and decrease of the
current period (Decrease is 47,271.21 31,621,212.01 366,755.75 32,035,238.97
marked with "-")
(I) Net profits 31,621,212.01 6,297,418.14 37,918,630.15
(II) Other comprehensive
47,271.21 23,727.90 70,999.11
incomes
Subtotal of the above-mentioned
47,271.21 31,621,212.01 6,321,146.04 37,989,629.26
items (I) and (II)
(III) Capital invested or
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
decreased by owners
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of the current period
Owners' equity attributable to the parent company
Item Minority
Paid-up Capital Less: Surplus Total owners'
Special General risk shareholders'
capital (or public treasury public Retained profits Others equity
reserve provision equity
share capital) reserve shares reserve
1. Capital invested by owners
2. Amount of share-based
payment recorded into owners'
equity
3. Others
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5,954,390.29 5,954,390.29
1. Accrual of surplus public
reserve
2. Accrual of general risk
provision
3. Amount distributed to owners
5,954,390.29 5,954,390.29
(or shareholders)
4. Others
(V). Internal carrying forward of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners' equity
1. Capital public reserve
transferred to increase capital (or
share capital)
2. Surplus public reserve
transferred to increase capital (or
share capital)
3. Surplus public reserve
compensating losses
4. Others
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of the current period
Owners' equity attributable to the parent company
Item Minority
Paid-up Capital Less: Surplus Total owners'
Special General risk shareholders'
capital (or public treasury public Retained profits Others equity
reserve provision equity
share capital) reserve shares reserve
(VI) Special reserve 0.00
1. Accrual of the current period
2. Amount utilized in the current
period
(VII) Others
102,91
IV. Ending balance of the current 784,799,010. 407,037,72 1,354,395,925.5
2,835.6 170,031,511.72
period 00 4.18 3
7
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of the previous year
Unit: Yuan
Amount of the previous year
Owners' equity attributable to the parent company
Item Minority
Less: General shareholders' Total owners' equity
Paid-up capital Capital public Special Surplus public
treasury risk Retained profits Others equity
(or share capital) reserve reserve reserve
shares provision
I. Ending balance of the previous
year
Plus: retroactive adjustment due to
the merger of enterprises under the
control of a same entity
Plus: change due to alteration of
accounting policies
Correction of errors of the previous
period
Others
II. Beginning balance of the current
784,799,010.00 407,684,719.56 102,912,835.67 -211,002,081.30 -411,391.17 89,603,113.32 1,173,586,206.08
year
III. Increase and decrease of the
current period (Decrease is marked -694,266.59 68,995,713.25 411,391.17 80,061,642.65 148,774,480.48
with "-")
(I) Net profits 68,995,713.25 -199,021.69 68,796,691.56
(II) Other comprehensive incomes -694,266.59 411,391.17 -57,764.30 -340,639.72
Subtotal of the above-mentioned
-694,266.59 68,995,713.25 411,391.17 -256,785.99 68,456,051.84
items (I) and (II)
(III) Capital invested or decreased
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 84,838,528.87 84,838,528.87
by owners
1. Capital invested by owners 85,170,000.00 85,170,000.00
2. Amount of share-based payment
recorded into owners' equity
3. Others -331,471.13 -331,471.13
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -4,520,100.23 -4,520,100.23
1. Accrual of surplus public reserve
2. Accrual of general risk provision
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of the previous year
Owners' equity attributable to the parent company
Item Minority
Less: General shareholders' Total owners' equity
Paid-up capital Capital public Special Surplus public
treasury risk Retained profits Others equity
(or share capital) reserve reserve reserve
shares provision
3. Amount distributed to owners (or
-4,520,100.23 -4,520,100.23
shareholders)
4. Others
(V) Internal carrying forward of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners' equity
1. Capital public reserve transferred
to increase capital (or share capital)
2. Surplus public reserve
transferred to increase capital (or
share capital)
3. Surplus public reserve
compensating losses
4. Others
(VI) Special reserve
1. Accrual of the current period
2. Amount utilized in the current
period
(VII) Others
IV. Ending balance of the current
784,799,010.00 406,990,452.97 102,912,835.67 -142,006,368.05 169,664,755.97 1,322,360,686.56
period
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
8. Statement on changes of owners' equity of the parent company
Amount of the current period
Unit: Yuan
Amount of the current period
Item Paid-up capital Less: treasury Special Surplus public General risk Total owners'
Capital public reserve Retained profits
(or share capital) shares reserve reserve provision equity
I. Ending balance of the
previous year
Plus: change due to
alteration of accounting
policies
Correction of errors of the
previous period
Others
II. Beginning balance of the 1,147,535,511.3
784,799,010.00 404,980,399.08 102,912,835.67 -145,156,733.44
current year 1
III. Increase and decrease of
the current period (Decrease 30,883,821.29 30,883,821.29
is marked with "-")
(I) Net profits 30,883,821.29 30,883,821.29
(II) Other comprehensive
incomes
Subtotal of the
above-mentioned items (I) 30,883,821.29 30,883,821.29
and (II)
(III) Capital invested or
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
decreased by owners
1. Capital invested by owners
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of the current period
Item Paid-up capital Less: treasury Special Surplus public General risk Total owners'
Capital public reserve Retained profits
(or share capital) shares reserve reserve provision equity
2. Amount of share-based
payment recorded into
owners' equity
3. Others
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Accrual of surplus public
reserve
2. Accrual of general risk
provision
3. Amount distributed to
owners (or shareholders)
4. Others
(V) Internal carrying forward of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners' equity
1. Capital public reserve
transferred to increase capital
(or share capital)
2. Surplus public reserve
transferred to increase capital
(or share capital)
3. Surplus public reserve
compensating losses
4. Others
(VI) Special reserve 0.00
1. Accrual of the current
period
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of the current period
Item Paid-up capital Less: treasury Special Surplus public General risk Total owners'
Capital public reserve Retained profits
(or share capital) shares reserve reserve provision equity
2. Amount utilized in the
current period
(VII) Others
IV. Ending balance of the 1,178,419,332.6
784,799,010.00 404,980,399.08 102,912,835.67
current period 0
Amount of the previous year
Unit: Yuan
Amount of the previous year
Item General
Paid-up capital (or Capital public Less: treasury Special Surplus public
risk Retained profits Total owners' equity
share capital) reserve shares reserve reserve
provision
I. Ending balance of the
previous year
Plus: change due to
alteration of accounting
policies
Correction of errors of the
previous period
Others
II. Beginning balance of the
784,799,010.00 404,980,399.08 102,912,835.67 -237,989,519.02 1,054,702,725.73
current year
III. Increase and decrease of 92,832,785.58 92,832,785.58
the current period (Decrease
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of the previous year
Item General
Paid-up capital (or Capital public Less: treasury Special Surplus public
risk Retained profits Total owners' equity
share capital) reserve shares reserve reserve
provision
is marked with "-")
(I) Net profits 92,832,785.58 92,832,785.58
(II) Other comprehensive
incomes
Subtotal of the
above-mentioned items (I) and 92,832,785.58 92,832,785.58
(II)
(III) Capital invested or
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
decreased by owners
1. Capital invested by owners
2. Amount of share-based
payment recorded into
owners' equity
3. Others
(IV) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1. Accrual of surplus public
reserve
2. Accrual of general risk
provision
3. Amount distributed to
owners (or shareholders)
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of the previous year
Item General
Paid-up capital (or Capital public Less: treasury Special Surplus public
risk Retained profits Total owners' equity
share capital) reserve shares reserve reserve
provision
4. Others
(V) Internal carrying forward of
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
owners' equity
1. Capital public reserve
transferred to increase capital
(or share capital)
2. Surplus public reserve
transferred to increase capital
(or share capital)
3. Surplus public reserve
compensating losses
4. Others
(VI) Special reserve
1. Accrual of the current period
2. Amount utilized in the
current period
(VII) Others
IV. Ending balance of the
784,799,010.00 404,980,399.08 102,912,835.67 -145,156,733.44 1,147,535,511.31
current period
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
(III) Basic Information About the Company
Shenzhen SEG Co., Ltd. (hereinafter referred to as the "Company" or "the Company") was incorporated on July 16th,
1996 through public offering with Shenzhen SEG Group Co., Ltd. as the sole initiator upon the approval of relevant
authorities of Shenzhen Municipality and the State in accordance with relevant provisions in the Company Law of the
People’s Republic of China. The Company received a Business License for Enterprise Legal Person (Shen Si Zi No.
N16886) with a registration number of 440301103573251. And upon the approval of the securities authorities of
Shenzhen Municipality and the State, the Company’s B shares and A shares started to be listed and traded on Shenzhen
Stock Exchange respectively in July and December, 1996.
On June 7th, 2006, a resolution was adopted at the general meeting of shareholders on the share merger reform of the
Company. According to the plan on the fixed conversion of capital public reserve into capital shares, the Company
distributed such converted and increased capital share to the shareholders of tradable A shares. Such shareholders
obtained 4.6445 shares of converted and increased capital share for each 10 shares, which totaled 40,233,322 converted
and increased capital shares. As a result, relevant non-tradable A shares were also authorized to be listed and traded.
Among the converted and increased capital share obtained by the shareholders of tradable A shares, 6,997,054 shares
were received due to the company's share capital expansion and the rest 33,236,268 shares were the consideration paid
to the shareholders of tradable A shares by shareholders of non-tradable A shares under fixed arrangements.
As of December 31, 2011, the total capital share of the company had amounted to 784,799,010 shares, including 35,464
restricted shares and 784,763,546 unrestricted shares.
Business Scope: domestic commerce, goods supply and sale (excluding commodities under special operation, control
and sale), engaging in other industries as may be applied for with specific projects, economic information consultancy,
property lease, estate agency and operation of SEG electronic markets (licenses for the markets shall be separately
applied for). Location of Registration: 31/F, Tower A, The Stars Plaza, Huaqiang Road (N), Futian District, Shenzhen
(IV) The Company's Main Accounting Policies, Accounting Estimates and Correction
of Previous Errors
1. Basis for preparation of the financial statements
The Company conducts confirmation and measurement on the basis of the continuous operation principle, according to
the transactions and matters that have actually occurred and in accordance with the Accounting Standard for Business
Enterprises - Basic Standard and other provisions in the Accounting Standard for Business Enterprises and prepares the
financial statements on such basis.
2. Statement on compliance with ASBE
The financial statements prepared by the Company comply with the requirements of the Accounting Standard for
Business Enterprises and truthfully and completely reflect relevant information on the financial position, operating results,
and cash flows of the Company.
3. Accounting period
A fiscal year lasts from January 1st to December 31st of the Gregorian Calendar.
4. Recording currency
Renminbi is the recording currency of the financial statements of the Company.
Recording currency of overseas subsidiaries:
The currency of the main economic environment where an overseas subsidiary operates is the recording currency of the
subsidiary, which is translated into Renminbi when the financial statements are prepared.
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
5. Accounting treatment method for the merger of the enterprises under the control of a same
entity and those not under the control of a same entity
(1) Merger of the enterprises under the control of a same entity
The assets and liabilities acquired by the Company in the merger are calculated according to the book value of the
merged party on the date of merger. The capital public reserve is adjusted according to the difference between the book
value of net assets acquired in the merger and that of the consideration of the merger (or the total book value of issued
shares). The retained earnings are adjusted if the capital public reserve is not sufficient for writing off.
The various direct expenses paid by the Company for the merger, including the auditing fee, evaluation fee, and legal
service fee for the merger, are recorded into current gains and losses at the time when the fees occur.
The service fee and commissions related to issuance of equity securities during the merger are set off against premium
income of equity securities. The retained earnings are offset if the premium income is not sufficient for offsetting.
When the accounting policies of the merged parties are not consistent with those of the Company, the Company makes
adjustments in accordance with its own accounting policies on the date of merger and then confirms in accordance with
the Accounting Standard for Business Enterprises.
(2) Merger of the enterprises not under the control of a same entity
The assets paid and the liabilities incurred or assumed by the Company as the consideration on the date of merger are
calculated according to fair value. The difference between the fair value and its book value is recorded into current gains
and losses.
The various direct expenses paid by the Company for the merger, including the auditing fee, evaluation fee, and legal
service fee for the merger, are recorded into current gains and losses at the time when the fees occur.
The Company allocates the consolidated cost on the acquisition date.
When the merger cost is more than the fair value of the recognizable net assets of the purchased party, the difference is
confirmed by the Company as goodwill. When the merger cost is less than the fair value of the recognizable net assets of
the purchased party, the difference is dealt with in accordance with the provisions as follows: 1. Review the fair value of
the recognizable assets, the liabilities and the contingent liabilities and the merger cost; 2. When the merger cost is indeed
less than the fair value of the recognizable net assets of the purchased party after review, the difference is recorded into
current gains and losses.
For other assets of the purchased party (not limited to the already confirmed assets of the purchased party) acquired in
the merger, except intangible assets, if economic interests generated from the assets are likely to flow into the Company
and the fair value of the interests can be measured reliably, the interests are separately confirmed and measured
according to their fair value. The intangible assets whose fair value can be measured reliably are separately confirmed as
intangible assets and measured according to their fair value. For other liabilities of the purchased party acquired in the
merger, except contingent liabilities, if economic interests are likely to flow out of the Company because of relevant
obligations conducted and the fair value of the interests can be measured reliably, the interests are separately confirmed
and measured according to the fair value. The contingent liabilities of the purchased party acquired in the merger, whose
fair value can be measured reliably, are confirmed as liabilities and measured according to their fair value.
6. Preparation method of the consolidated financial statements
(1) Preparation method of the consolidated financial statements
The scope of the consolidated financial statements of the Company is determined based on share-holding status, and all
subsidiaries are covered.
The accounting policies and accounting period adopted by all the subsidiaries included in the consolidation scope should
be consistent with those of the Company. Otherwise, the Company makes necessary adjustments according to its own
accounting policies and accounting period when preparing the consolidated financial statements.
The consolidated financial statements are prepared by the Company based on individual financial statements of the
Company and its subsidiaries as well as other relevant materials after the long-term equity investment in the subsidiaries
have been adjusted by the equity method.
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
During the consolidation, the influence on the consolidated balance sheet, the consolidated profit statement, the
consolidated cash flow statement and the consolidated statement on changes of owner’s equity, by internal transactions
between the Company and its subsidiaries and among the subsidiaries, is offset.
When the current losses undertaken by the minority shareholders of a subsidiary are more than the proportion enjoyed by
the minority shareholders in the owners' equity of the subsidiary at the period beginning, the difference should still be
offset against the equity of the minority shareholders.
The period-beginning amount of the consolidated balance sheet is adjusted if a subsidiary is increased in the report period
through the merger of enterprises under the control of a same entity. The income, expenses and profits of the subsidiary
from the beginning of the current period when it was merged to the end of the report period are included in the
consolidated profit statement. The cash flow of the subsidiary from the beginning of the current period when it was merged
to the end of the report period is included in the consolidated cash flow statement.
The period-beginning amount of the consolidated balance sheet is not adjusted if a subsidiary is increased in the report
period through the merger of enterprises not under the control of a same entity. The income, expenses and profits of the
subsidiary from the acquisition date to the end of the report period are included in the consolidated profit statement. The
cash flow of the subsidiary from the acquisition date to the end of the report period is included in the consolidated cash
flow statement.
If the Company disposes a subsidiary in the report period, the income, expenses and profits of the subsidiary from the
period beginning to the disposal date are included in the consolidated profit statement and the cash flow of the subsidiary
in the same period is included in the consolidated cash flow statement.
(2) For buying/selling and then selling/buying the equities of the same subsidiary in two consecutive accounting
years, relevant accounting treatment methods should be disclosed.
7. Standards for determination of cash and cash equivalents
In the preparation of the cash flow statement, the cash on hand and the bank deposits available for payment at any time,
owned by the Company, are confirmed as cash. The investments that meet the four conditions of shorter term (to be
mature within 3 months from the purchasing date), strong liquidity, easiness in being converted into known cash, very
small risk of value fluctuation are confirmed as cash equivalents.
8. Foreign currency businesses and translation of the financial statements in foreign currency
(1) Foreign currency businesses
Foreign currency businesses are recorded into accounts after relevant amounts are translated into RMB according to the
current exchange rate on the transaction date as the exchange rate for translation.
The balance of the monetary items in foreign currency is translated according to the current exchange rate on the balance
sheet date while the translation difference caused is all recorded into current gains and losses, except the difference from
the special foreign currency loans related to the assets whose purchase and construction meet the conditions for
capitalization, which are dealt with according to the principles for capitalization of loan expenses. The non-monetary items
in foreign currency measured by the historical cost method are translated according to the current exchange rate on the
transaction date and the amount in the recording currency is not changed. The non-monetary items in foreign currency
measured by fair value are translated according to the current exchange rate on the confirmation date of the fair value
while the translation difference caused is recorded into current gains and losses or into capital public reserve.
(2) Translation of the financial statements in foreign currency
The assets and liabilities items in the balance sheet are translated according to the current exchange rate on the balance
sheet date. The owners’ equity items other than "retained profits" should be translated according to the current exchange
rate at the time when incurred. The income and expense items in the profit statement are translated according to the
current exchange rate on the transaction date. The translation difference in the financial statements in foreign currency
caused by the above-mentioned methods is listed separately under the owner’s equity items in the balance sheet.
When an overseas operation is disposed, the translation difference in the financial statements in foreign currency related
to the overseas operation, which is listed under the owner’s equity items in the balance sheet, is transferred from the
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owner’s equity items to current gains and losses of the period when the disposal is carried out. When an overseas
operation is partly disposed, the translation difference is calculated according to the proportion of the disposal, which is
transferred to current gains and losses of the period when the disposal is carried out.
9. Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
(1) Classification of financial instruments
According to the purposes of the acquisition and holding of financial assets and the assumption of financial debts, the
management classifies them as follows: financial assets and liabilities measured according to the fair value whose
changes are recorded into current gains and losses, including trading monetary assets or liabilities and the financial
assets or liabilities (and those that can be directly assigned as financial assets or liabilities measured according to fair
value and whose changes are recorded into current gains and losses), held-to-maturity investment, loans and
accounts receivable, financial assets available for sale, and other financial liabilities.
(2) Confirmation basis for and measurement method of financial instruments
(1) Financial assets (liabilities) measured by fair value and with changes included in the current gains and losses
The fair value (with the cash dividends declared but not yet distributed or the bond dividends not yet received with the
interest payment period expired deducted) is taken as the initial confirmed amount at the time of acquisition.
Relevant transaction expenses are recorded into current gains and losses. The interests and cash dividends obtained
during the time of holding are confirmed as investment income.
At the time of disposal, the difference between the fair value and the initial recorded amount in the account is
confirmed as investment income and the gains and losses from changes of fair value are adjusted at the same time.
(2) Held-to-maturity investment
At the time of acquisition the sum of the fair value (with the bond interests deducted, which are not yet received with
the term of interest payment expired) and relevant transaction expenses are taken as the initial confirmed amount.
During the period of share-holding, the interest income is calculated and confirmed in accordance with the amortized
and the actual interest rate, which is recorded into the investment income. The actual interest rate is determined at the
time of acquisition and remains unchanged within the anticipated existence period or a shorter period applicable.
At the time of disposal, the difference between the price of acquisition and the book value of such investment is
recorded into investment income.
(3) Accounts receivable
For the accounts receivable formed from the commodities sold or labor services provided by the Company and those
of other enterprises held by the Company other than the priced debt tools in the active market, including accounts
receivable, notes receivable, advances, other accounts receivable, long-term accounts receivable, the price money in
contracts or agreements of the purchaser is taken as the initial confirmed amount. For those of a financing nature, the
current value is taken as the initial confirmed amount.
At the time of collection or disposal, the difference between the price of acquisition and the book value of such
accounts receivable are recorded into current gains and losses.
(4) Finance assets available for sales
The sum of the fair value (with the cash dividends declared but not yet distributed or the bond dividends not yet
received with the interest payment period expired deducted) and relevant transaction expenses are taken as the initial
confirmed amount at the time of obtainment.
The interests or cash dividends obtained during the time of holding are confirmed as investment income. Such assets
are measured according to the fair value at the end of the period and the changes of fair value are recorded into capital
public reserve (other capital public reserve).
At the time of disposal, the difference between the price of acquisition and the book value of such financial assets is
recorded into investment gains and losses. At the same time, the amount of the disposed part of the assets originally
recorded in the accumulative amount of the changes in the fair value of owners’ equity is transferred and recorded into
investment gains and losses.
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(5) Other financial liabilities
The sum of the fair value of such assets and relevant transaction expenses is taken as the initial confirmed amount.
The amortized cost is adopted in the subsequent measurement.
(3) Confirmation basis for and measurement method of financial assets transfer
In the case of the transfer of the financial assets of the Company, if almost all the risks and returns in the ownership rights
of the financial assets are transferred to the assignee, the confirmation of such financial assets is terminated, and if almost
all the risks and returns in the ownership rights of such financial assets are retained, the confirmation of such financial
assets is not terminated.
In the judgment whether a financial asset transfer meets the above conditions for termination of its confirmation, the
principle of attaching more importance to substance than form is adopted. The Company divides financial assets transfer
into the complete and the partial transfer. Where the complete transfer of financial assets meets the conditions for
termination of confirmation, the difference of the following two amounts is recorded into current gains and losses.
(1) The book value of the transferred financial assets;
(2) The sum of the consideration received due to transfer and the accumulated amount of the changes in fair value
originally recorded in owners’ equity (involving the situation when the transferred financial assets are the financial
assets available for sale).
If the partial transfer of financial assets meets conditions for termination of confirmation, the part with its confirmation
terminated and that with its confirmation not terminated, among the book value of all the transferred financial assets, are
apportioned separately according to their relevant fair value while the difference between the following two amounts is
recorded into current gains and losses.
(1) Book value of the part with its confirmation terminated;
(2) The sum of the consideration of the part with its confirmation terminated and the part of the accumulated amount of the
changes in fair value originally recorded in owners’ equity corresponding to the part with its confirmation terminated
(involving the situation when the transferred financial assets are the financial assets available for sale).
Where the financial assets transfer does not meet the conditions for termination of confirmation, the confirmation of such
financial assets is continued. The received consideration is confirmed as a financial liability.
(4) Conditions for the termination of the confirmation of financial liabilities
If all or a part of current obligations of a financial liability are discharged, the confirmation of the financial liability or part of
it is terminated. If the Company signs an agreement with the creditor to substitute an existing financial liability by
assuming a new financial liability and the contract terms for the new liability and the existing one are not consistent, the
confirmation of the existing financial liability is terminated and the new financial liability is confirmed in the meantime.
If material alteration has been made to all or a part of contract terms of the existing financial liability, the confirmation of
the existing liability or part of it is terminated and, in the meantime, the liability after the alteration is made is confirmed as
a new financial liability.
If the confirmation of all or a part of a financial liability is terminated, the difference between the book value of the liability
with its confirmation terminated and the consideration (including non-cash assets transferred or the new liability assumed)
is recorded into current gains and losses.
If the Company repurchases a part of a financial liability, the total book value of the liability is allocated on the purchasing
date according to the respective relative fair value of the part with its confirmation continued and that with its confirmation
terminated. The difference between the book value allocated to the part with its confirmation terminated and the
consideration (including non-cash assets or the new liability assumed) is recorded into current gains and losses.
(5) Methods for the determination of the fair value of financial assets and liabilities
For the financial assets and financial liabilities that exist in the active market, the Company determines their fair value
based on the quotation in the active market. For those that do not exist in the active market, the Company determines
their fair value by valuation techniques, such as referring to the prices applied in recent transactions which are conducted
by well-informed and willing parties or the current fair value of other financial instruments of the same nature, or adopting
the discounted cash flow technique and the option pricing model. For those initially acquired or raw financial assets and
financial liabilities, the Company determines their fair value based on the market price.
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(6) Accrual of impairment provision for financial assets (excluding accounts receivable)
(1) Impairment provisions of financial assets available for sale:
If the fair value of the financial assets available for sale sees a large decrease at the end of the period or it is
anticipated that such decrease tendency is not provisional upon the comprehensive analysis of various relevant factors,
then it can be determined that impairment occurred to such assets. All the accumulative losses formed from the
decrease of the fair value originally and directly recorded into owners’ equity are transferred out and relevant
impairment loss is confirmed.
(2) Impairment provision of held-to-maturity investment
The measurement of the impairment loss of held-to-maturity investments is carried out with reference to the method for
the measurement of the impairment loss of accounts receivable.
(7) For those undue held-to-maturity investments that are reclassified as financial assets available for sale,
explanations regarding the changes in the purpose of holding and the ability to hold must be given
10. Confirmation basis and accrual methods for bad debt provision of accounts receivable
Criteria for significant individual amount:
Top five accounts receivable
Accrual methods for the accounts receivable with a significant amount individually, for which bad debt provision is
separately accrued are as follows:
For the accounts receivable for which impairment tests show indications of impairment, the bad debt provision is accrued
by confirming the impairment losses based on the difference between the current value of the future cash flow and its
book value. For the accounts receivable and other receivables for which impairment tests show no indications of
impairment, the bad debt provision is accrued by the aging analysis method taking the age as the feature of credit risks.
(1) Bad debt provision for the accounts receivable with a significant amount individually
Judging basis or standard for significant individual amount Top five accounts receivable
Accounts receivable with a significant amount individually, for
Have separate impairment tests
which bad debt provision is separately accrued
(2) Accounts receivable for which bad debt provision is accrued according to different combinations:
Accrual methods of bad debt
Name Determination basis for the combination
provision based on combinations
Accrual method determined according to the combination
Combination 1 Aging analysis method
based on credit risk characteristics
Aging analysis method
Accounts receivable in the combination, for which the bad debt provision is accrued by the aging analysis method:
√ Applicable □ Not applicable
Accrual proportion of accounts Accrual proportion of other accounts receivable
Age
receivable (%) (%)
Within one year (including one
year)
1-2 years 5% 5%
2-3 years 10% 10%
Over 3 years 20% 20%
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Accrual proportion of accounts Accrual proportion of other accounts receivable
Age
receivable (%) (%)
3-4 years
4-5 years
Over 5 years
Accounts receivable in the combination, for which bad debt provision is accrued by the balance percentage analysis
method:
□ Applicable □ Not applicable
Accounts receivable in the combination, for which bad debt provision is accrued by other methods:
□ Applicable □ Not applicable
(3) Accounts receivable with an insignificant amount individually, for which bad debt provision is separately
accrued:
Reasons for separately accruing the bad debt provision:
The accounts receivable with an insignificant amount individually have big risk in recovery, so bad debt provision was
accrued by the specific identification method. The difference between the current value of the estimated future cash flow
and its book value, if the former is less than the latter, is accrued as bad debt provision and recorded into current gains
and losses.
Accrual methods for bad debt provision:
11.Inventory
(1) Classification of inventory
Inventory is classified as follows: goods en route, raw materials, circulating materials, in-stock goods, goods in process,
delivered goods and consigned processing materials.
(2) Pricing method of delivered inventory
□ The first-in first-out method □ the weighted average method □ the specific identification method □ others
The pricing of the inventory is made according to the weighted average method at the time of delivery.
(3) Determination basis for the net realizable value of inventory and accrual method of inventory decline
provision
After a complete counting and examination of the inventory at the end of the year, the inventory decline provision is
accrued or adjusted according to the lower between the inventory cost and the net realizable value.
The net realizable value of the goods inventory directly for sale such as finished products, goods and materials for sale is
determined in regular production and operation according to the amount of the estimated sale price of such inventory
minus estimated sale expenses and relevant taxes. That of the material inventory to be processed is determined in regular
production and operation according to the estimated sale price of the finished products produced minus estimated sale
expenses and relevant taxes. That of the inventory held for the performance of sale or service contracts is calculated on
the basis of the contract price. Where the quantity of the inventory is more than the quantity ordered in the sale contract,
the net realizable value of the surplus of such inventory is calculated on the basis of the general sale price.
At the end of the year, the inventory decline provision is accrued according to individual inventory items. However, that of
the inventory of a large quantity and a low unit price is accrued according to the types of the inventory. For the inventory
involving the product series produced and sold in the same region, having identical or similar final use or purpose, and
being difficult to be separated from other items for measurement, relevant inventory decline provision is accrued in a
combined manner.
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Where the factors previously causing the recording of the reduction of inventory value stop to exist, the reduced amount is
restored and transferred back from the amount of the originally accrued inventory decline provision. The transferred
amount is recorded into current gains and losses.
(4) Inventory taking system
□ The perpetual inventory system □ the periodic inventory system □ others
The perpetual inventory method is adopted in the stock inventory.
(5) Amortization method of low value consumables and packaging materials
Low-cost consumables
Amortization method: one-off amortization
Packaging materials
Amortization method: one-off amortization
12. Long-term equity investment
(1) Determination of the initial investment cost
(1) Long-term equity investment formed from enterprise merger
In the merger of the enterprises under the control of a same entity, if the Company pays cash, transfers non-monetary
assets or bears debts, and issues equity securities as the consideration of the merger, the book value of the shares of
the owners’ equity obtained from the merged party on the merger date is taken as the initial investment cost of the
long-term equity investment. The capital public reserve is adjusted for the difference between the initial investment
cost of the long-term equity investment and the consideration and retained profits are adjusted if the capital public
reserve is not sufficient for off-setting. All direct relevant expenses during the merger, including the auditing fee,
evaluation fee and legal fee for the merger, are recorded into current gains and losses at the time when the fees occur.
If there is a consolidated financial statement of the merged party, the initial investment cost of the long-term equity
investment is determined based on the owner's equity of the merged party's consolidated financial statement on the
merger date.
In the merger of the enterprises not under the control of a same entity, the cost for the merger is the fair value of the
assets paid and the liabilities incurred or assumed as well as the equity securities issued by the purchasing party for
the acquisition of the control of the purchased party. All direct relevant expenses for the merger, including agency fees
like auditing fee, evaluation fee and legal fee and relevant management fee, are recorded into current gains and
losses at the time when the fees occur. The transaction costs for the equity securities or debt securities issued as the
purchase price are recorded into the initial confirmed amount.
Where the Company realizes the merger of the enterprises not under the control of a same entity in steps through
several transactions, it shall perform relevant accounting treatments separately for single financial statements and the
consolidated financial statement:
In single financial statements, the initial investment cost of the investment shall be recognized at the sum of the book
value of the equity investment held by the acquired party before the acquisition date and the increased investment
cost on the acquisition date. If the equity held by the acquired party before the acquisition date involves other
comprehensive revenues, the other comprehensive revenues related thereto (e.g. the proportion in the change of fair
value of financial asset available for sale; the same also applies below) shall be transferred into the return on
investment of the current period during the disposal of such investment.
In the consolidated financial statement, the equity held by the acquired party before the acquisition date shall be
re-measured at the fair value of the equity on the acquisition date, and the difference between the fair value and its
book value shall be recorded into the return on investment of the current period. If the equity held by the acquired party
before the acquisition date involves other comprehensive revenues, the other comprehensive revenues related thereto
shall be transferred into the return on investment of the current period to which the acquisition date belongs. If future
items likely to influence the merger cost, for which a relevant agreement has been reached, are estimated very
possible to occur on the acquisition date and the amount of their influence on the merger cost can be measured
reliably, these future items are also recorded into the cost for the merger.
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(2) Long-term equity investment obtained from other ways
The purchase price money actually paid is taken as the initial investment cost of the long-term equity investment
obtained by cash.
The fair value of the issued equity securities is taken as the initial investment cost of the long-term equity investment
obtained from the issuance of equity securities.
The value agreed in investment contracts or agreements (with the cash dividends declared but not yet distributed or
profits deducted) of the long-term equity investment given by the investors is taken as the initial investment cost,
unless the value agreed in investment contracts or agreements is not the fair value.
Under the premises that the non-monetary assets exchange is of commercial nature and that the fair value of the
assets received and given out in the exchange can be measured reliably, the initial investment cost of the long-term
equity investment received in non-monetary assets exchange is determined on the basis of the fair value of the assets
given out, unless there are definite evidences that the fair value of the received assets is more reliable. For the
non-monetary assets exchange that do not meet the above premises, the book value of the received assets and
relevant taxes payable is taken as the cost of the long-term equity investment.
The initial investment cost of the long-term equity investment obtained through debt restructuring is determined
according to its fair value.
(2) Subsequent measurement and confirmation of gains and losses
(1) Subsequent measurement
The accounting of the long-term equity investment of the Company into the subsidiaries is done according to the cost
method. Such investment is adjusted according to the equity method in the preparation of the consolidated financial
statements.
The accounting of the long-term equity investment that does not involve the joint control over or significant influence
on the invested units, that does not have quoted prices in the active market, and whose fair value cannot be reliably
measured is done according to the cost method.
The accounting of the long-term equity investment that involves the joint control over or significant influence on the
invested units is done according to the equity method. When the Company can exercise significant influence on or
joint control over the invested units, if the initial investment cost is larger than the investment, the Company should
enjoy the difference with the due share of the fair value of the discernible net assets of the invested units and the initial
investment cost of the long-term equity investment should not be adjusted, if the initial investment cost is smaller than
the investment, the Company should enjoy the difference with the due share of the fair value of the discernible net
assets of the invested units and such difference is recorded into current gains and losses
In the accounting treatment of the changes in owners' equity other than net gains and losses of the invested units, the
book value of the long-term equity investment is adjusted and the capital public reserve (other capital public reserve)
added or decreased with respect to the part of the changes in owners’ equity other than net gains and losses of the
invested units that the Company should enjoy or bear according to the proportion of shareholding under the
circumstance that the proportions of shareholding remain unchanged. Where the invested entity can provide the
consolidated financial statements during the period of holding the investments, the accounting shall be carried out
based on the consolidated financial statements, net profits and other investment changes.
(2) Confirmation of gains and losses
Under the cost method, the Company confirms investment income according to the cash dividends or profits enjoyed
by the Company, for which the invested unit declares to distribute, except the actual amount paid when investment is
acquired and cash dividends and profits included in the consideration and declared but yet to be distributed.
Under the equity method, when the investing enterprise recognizes that it could enjoy the invested entity’s net profits
or net losses, it shall confirm the net profits of the invested entity after adjustment based on the fair value of various
identifiable assets of the invested entity when obtaining the investment. For the profits and losses in the internal
transactions between the investing enterprise and joint operation enterprises or joint ventures, the proportion
attributable to the investing enterprise shall be calculated at the shareholding proportion, and shall be offset. The
returns or losses on investment shall be confirmed on this basis. When Company confirms the losses it should share
with the invested entity, it shall conduct it in the following order: First, offset the book value of long-term equity
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investments. Second, if the book value of the long-term equity investment is not sufficient for the offsetting, the
investment loss should continue to be confirmed within the limit of the book value of other long-term equity that
practically constitutes net investments into the invested unit and the book values of long-term accounts receivable and
others are offset. Finally, if the enterprise still bears additional obligations as agreed in the investment contract or
agreement after the above processing, liabilities are confirmed according to the anticipated obligations to be borne
and recorded into current investment loss.
Where the invested units realize profits in the later periods, the Company should make accounting treatment in the
reversed sequence against the above after deducting the shared loss not yet confirmed, reduce the book balance of
the confirmed anticipated liabilities, restore other long-term equity that practically constitutes net investments into the
invested units and the book value of the long-term equity investment, and confirm investment income at the same
time.
(3) Basis for determining that the invested units are under common control or have significant influence
If the common control over a certain economic activity as agreed in a contract exists only with the unanimous agreement
of the investors who need to share the controlling powers in the important financial and operation decisions related to
such economic activity, such investors are deemed as exercising joint control with other parities over the invested unit. If
an investor has the power to participate in the decision making of the financial and operation matters of an enterprise but
cannot control or jointly control with other parties the formation of such policies, then such investor is deemed as being
able to exercise significant influence over the invested units.
(4) Impairment test method and accrual method of impairment provision
For the long-term equity investment that does not have price quotations in the active market, whose fair value cannot be
reliably measured, and the accounting of which is conducted with cost method, its impairment loss is determined by the
difference between its book value and the current value determined through discounting the future cash flow according to
the current market return rate of similar financial assets
For other long-term equity investments with impairment except the goodwill formed due to enterprise mergers, if
measurement results of recoverable amount of a long-term equity investment indicate that such recoverable amount is
lower than the book value of the investment, the difference between the two is confirmed as impairment loss.
As for any long-term equity investment accounted by the cost method, after the return on investment is confirmed since
the invested entity declares to distribute cash dividends or profits, it is necessary to consider whether impairment occurs
to the long-term equity investment.
An impairment test is carried out to the goodwill formed due to enterprise mergers whether the goodwill faces impairment
or not.
Once the impairment loss of long term equity investment is confirmed, such loss will not be transferred back.
13. Investment properties
Investment property refers to the property held for earning rental or increasing the value of capital, including the right to
use of the rented land, the right to use of the land held for transfer after the value increases, and the rented building.
The investment property presently held by the Company is measured in a cost mode. For investment properties, the
depreciation policy for buildings for rent measured according to the cost mode is the same as that for the fixed assets of
the Company and the amortization policy for the use right of land for rent is the same as that for intangible assets.
For investment properties facing impairment, the Company evaluates their recoverable amount and confirms relevant
impairment loss if the recoverable amount is less than the book value.
Once the impairment loss of investment property is confirmed, such loss will not be transferred back.
14. Fixed assets
(1) Conditions on confirmation of fixed assets
Fixed assets refer to the tangible assets held for the purpose of the manufacturing of commodities, provision of labor
services, lease or operation and management with a term of use exceeding one year. The confirmation of fixed assets can
be made only when all the following conditions are satisfied:
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(1) Where the economic interests related to such fixed assets are likely to flow into the company;
(2) Where the cost of such fixed assets can be measured reliably.
(2) Confirmation basis and pricing method for fixed assets obtained by financing lease
(3) Depreciation methods of various fixed assets
The fixed assets depreciation is accrued according to the straight line method and the depreciation rate is determined
according to the type of fixed assets, anticipated service life and anticipated net residual value rate.
For the fixed assets leased by financing lease, if it can be reasonably determined that the ownership right of the leased
assets will be obtained upon the expiration of the lease term, depreciation is accrued within the remaining service life of
the leased assets; and if it cannot be reasonably so determined, depreciation is accrued during the shorter one of the
lease term and the remaining service life of the leased assets.
Category Depreciation period (year) Residual value rate (%) Annual depreciation rate
Houses and buildings 20-40 5 4.75-2.375
Machinery equipment 5-10 5 19.00-9.50
Electronic equipment 5-10 5 19.00-9.50
Transportation equipment 5-10 5 19.00-9.50
Other equipment 10 5 9.50
Fixed assets acquired by
-- -- --
financing lease
Including: houses and
buildings
Machinery equipment
Electronic equipment
Transportation equipment
Other equipment
(4) Impairment test method of fixed assets and accrual method of impairment provision
The Company estimates at the end of every period whether there are indications of impairment on its fixed assets.
Where there are indications of impairment on some assets, the recoverable amount of such assets is estimated. The
recoverable amount may be determined according to the higher one of the net value of the fair value of the assets minus
the disposal expenses and the current value of the anticipated future cash flow of the assets.
Where the recoverable amount of the assets is lower than its book value, the book value of such assets may be reduced
and recorded into the recoverable amount. The reduced amount is confirmed as assets impairment loss and recorded into
gains and losses of the current period.
At the same time, the corresponding assets impairment provision is accrued. After the confirmation of assets impairment
loss, corresponding adjustments are made in the future periods on the depreciation or amortized expenses of the
impaired assets so that the adjusted book value of such assets (with the anticipated net residual value deducted) can be
amortized systematically within the remaining service life.
Once the impairment loss of fixed assets is confirmed, the loss will not be transferred back in later accounting periods.
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Where there are indications of impairment on a certain fixed asset, the enterprise estimates the recoverable amount of the
asset based on the individual asset. If it is hard for the enterprise to estimate the recoverable amount of the asset, the
enterprise makes estimation based on the asset group to which the asset belongs.
(5) Notes
Confirmation basis and pricing method for fixed assets obtained by financing lease
An asset is confirmed as a fixed asset obtained by financing lease if the lease agreement between the Company and the
leasing party provides one of the following conditions:
(1) The ownership of the leased asset belongs to the Company when the lease period expires;
(2) The Company has an option to purchase the asset and the purchasing price is far lower than the fair value of the asset
when the option right is used;
(3) The lease period takes the most of the service life of the asset;
(4) The current value of the minimum payment on leasing date does not differ greatly with the fair value of the asset;
Between the fair value and the current value of the minimum payment of the leased asset, the lower is taken by the
Company on leasing date as the recorded value in account and the difference as financing fee not confirmed.
15. Construction in progress
(1) Type of construction in progress
The accounting of construction in progress is made according to the classification of the projects determined in project
initiation.
(2) Standards and time points for the construction in progress to be carried forward to fixed assets
For a construction in progress, all expenses during the construction till the desired usable status of the asset is reached
are taken as the recorded value of the fixed asset. If a construction in progress has reached the desired usable status but
has not conducted final accounting, it is transferred into fixed assets when it reaches the desired usable status, according
to the estimated value based on project budget, construction cost or actual cost; in the meantime, depreciation is accrued
according to the Company’s depreciation policies for fixed assets; when the final accounting is conducted the temporarily
estimated value is adjusted according to the actual cost while the accrued depreciation amount is not adjusted.
(3) Impairment test method of construction in progress and accrual method of impairment provision
The Company estimates at the end of every period whether there are indications of impairment on construction in
progress.
Where there are indications of impairment on some assets, the recoverable amount of such assets is estimated. The
recoverable amount may be determined according to the higher one of the net value of the fair value of the assets minus
the disposal expenses and the current value of the anticipated future cash flow of the assets.
Where the recoverable amount of the assets is lower than its book value, the book value of such assets may be reduced
and recorded into the recoverable amount. The reduced amount is confirmed as assets impairment loss and recorded into
current gains and losses.
At the same time, the corresponding assets impairment provision is accrued. Once the impairment loss of a construction
in progress is confirmed, it will not be transferred back in later accounting periods.
Where there are indications of impairment on a construction in progress, the enterprise estimates the recoverable amount
based on the individual construction. If it is hard for the enterprise to estimate the recoverable amount of the individual
construction, the enterprise makes estimation based on the asset group to which the construction belongs.
16. Borrowing costs
(1) Confirmation principle of borrowing costs capitalization
Where the borrowing costs incurred by the Company is directly attributable to the purchase, building or production of the
assets that meet the conditions of capitalization, such assets are capitalized and recorded into relevant assets cost. Other
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borrowing costs are confirmed as expenses according to the incurred amount at the time of incurrence and recorded into
current gains and losses.
The assets that meet the conditions of capitalization refer to the assets such as fixed assets, investment property and
inventory that can reach the anticipated usable or salable status only after a considerable time of purchase, building or
production activities.
The borrowing costs shall not be capitalized unless they meet all the following requirements:
(1) The asset disbursements have already incurred, which shall include the cash, transferred non-cash assets or interest
bearing debts paid for the acquisition and construction or production activities for preparing assets eligible for
capitalization.
(2) The borrowing costs have already incurred.
(3) The construction or production activities necessary for putting the assets into a usable or salable status have already
started.
(2) Capitalization term of borrowing costs
The capitalization term refers to the period between the start time point and the end time port of the capitalization of the
borrowing costs, excluding the period in which the capitalization is suspended.
Where the purchase, building or production of the assets that meet the conditions of capitalization has put such assets
into the anticipated usable or salable status, the capitalization of the borrowing costs is stopped.
Where part of the projects in the purchase, building or production of the assets that meet the conditions of capitalization
have been completed and reached the anticipated usable or salable status, the capitalization of the borrowing costs of
such part of the assets is stopped.
Where different parts of the assets purchased, built or produced have been completed but cannot be used or sold till the
whole assets have been completed, the capitalization of the borrowing costs is stopped when the whole assets are
completed.
(3) Suspension period of capitalization
Where abnormal discontinuation has occurred in the purchase, building or production of the assets that meet the
conditions of capitalization and the time of discontinuation exceeds three months consecutively, the capitalization of the
borrowing costs is suspended. If the discontinuation is a necessary procedure in the process during which the assets
purchased or produced, which meet the conditions of capitalization, reach the usable or salable status, the capitalization
of the borrowing costs continues. The borrowing costs occurring in the suspension period are confirmed as current gains
and losses and the capitalization is continued until the purchasing and production activities of the assets are restarted.
(4) Calculation method of the amount of borrowing costs capitalization
The interest expenses of special loans (with the interest income of the unused borrowed funds deposited in the bank or
the investment income obtained from temporary investment deducted) and relevant auxiliary expenses are capitalized
before the assets that meet the conditions of capitalization, purchased, built or produced with such loans, reach the
anticipated usable or salable status.
The amount of the interests of common loans that are capitalized is calculated and determined by the weighted average of
the accumulative parts of the assets expenditure exceeding special loans multiplied by the capitalization rate of common
loans. The capitalization rate is determined according to the weighted average interest rate of common loans.
Where the loans involve discount or premium, the amount of discount or premium to be amortized in each accounting
period is determined in accordance with the actual interest rate method and the amount of interests of each period should
also be adjusted.
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17. Biological assets
18. Oil & gas assets
19. Intangible assets
(1) Pricing method of intangible assets
(1) The Company carries out initial measurement by the cost method when acquiring intangible assets;
The cost of the intangible assets purchased from outside includes purchase price money, relevant taxes and other
expenses incurred due to putting such assets to the anticipated use that can be directly attributed to such assets.
Where the price money of the purchased intangible assets is paid on a deferred basis within a term exceeding regular
credit conditions and actually of a financing nature, the cost of the intangible assets is determined on the basis of the
current value of the price money in purchase.
The recorded value in the account of the fixed assets obtained from debtors for the repayment of debts in debt
restructuring is determined on the basis of the fair value of the fixed assets. The difference between the book value of
debt restructuring and the fair value of the fixed assets used for the repayment of debts is recorded into current gains
and losses.
Under the premises that the non-monetary assets exchange is of commercial nature and that the fair value of the
assets received and given out in the exchange can be measured reliably, the initial investment cost of the long-term
equity investment received in non-monetary assets exchange is determined on the basis of the fair value of the assets
given out, unless there are definite evidences that the fair value of the received assets is more reliable. For the
non-monetary assets exchange that do not meet the above premises, the book value of the received assets and
relevant taxes payable is taken as the cost of the long-term equity investment.
The recorded value in the account of the intangible assets obtained by the merger of the enterprises under the control
of a same entity is determined according to the book value of the merged party. The recorded value in the account of
the intangible assets obtained by the merger of the enterprises under the control of different entities is determined
according to the fair value.
The cost of the intangible assets formed through internal R&D activities includes: the cost of materials and labor
consumed in the development of such intangible assets, registration fee, the amortization of other patent rights and
franchises used in the development process and the interests expenses that meet the conditions of capitalization, and
other direct expenses incurred due to putting such intangible assets into the anticipated use.
(2) Subsequent measurement
The Company estimates the service life when acquiring intangible assets.
The intangible assets with limited service life are amortized according to the straight line method within the period that
such assets bring economic benefits to the enterprise. Where the period cannot be anticipated in which such
intangible assets bring economic interests to the enterprise, such intangible assets are deemed as having
indeterminate service life and no amortization will be made.
(2) Estimation of the service life of the intangible assets with limited service life
At the end of each year, the service life and amortization method of the intangible assets with limited service life are
reviewed.
After review, the service life and amortization method of the intangible assets with limited service life are the same as
before.
Item Estimated service life Basis
UFIDA software 5 Benefit period
KOA software 5 Benefit period
Money collection software 5 Benefit period
Land use right 50 Benefit period
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(3) Judging basis for intangible assets with indeterminate service life
(4) Accrual of impairment provision for intangible assets
Where there are obvious indications of impairment on the intangible assets whose service life is fixed, an impairment test
is carried out at the end of the period.
For the intangible assets whose service life is not fixed, an impairment test is carried out at the end of each period.
An impairment test is carried out to intangible assets and the recoverable amount of the assets is estimated. The
recoverable amount may be determined according to the higher one of the net value of the fair value of the assets minus
the disposal expenses and the current value of the anticipated future cash flow of the assets.
Where the recoverable amount of the assets is lower than its book value, the book value of such assets may be reduced
and recorded into the recoverable amount. The reduced amount is confirmed as assets impairment loss and recorded into
current gains and losses.
At the same time, the corresponding assets impairment provision is accrued. After the confirmation of assets impairment
loss, corresponding adjustments are made in the future periods on the depreciation or amortized expenses of the
impaired assets so that the adjusted book value of such assets (with the anticipated net residual value deducted) can be
amortized systematically within the remaining service life.
Once the impairment loss of an intangible asset is confirmed, it is not transferred back in later accounting periods.
Where there are indications of impairment on an intangible asset, the Company estimates the recoverable amount based
on the individual intangible asset. If it is hard for the Company to estimate the recoverable amount of the individual asset,
the Company makes estimation based on the asset group to which the asset belongs.
(5) Classification standards for distinguishing research and development phases of R&D projects inside the
Company
Research phase: a phase in which creative and planned investigation and research activities are carried out for the
purpose of obtaining and understanding new scientific or technological knowledge.
Development phase: a phase in which research results or other knowledge, before being produced or used for
commercial purposes, are applied in a certain plan or design for the purpose of producing materials, equipments and
products that are new or feature substantial improvement.
The expenses for inside R&D projects during the research phase are recorded into current gains and losses when the
expenses occur.
(6) Accounting for the expenditure in internal research and development projects
The expenditure in the development phase of a research and development project can be confirmed as intangible assets
only when all the following conditions are met:
(1) The completion of such intangible assets makes it usable or its sale technically feasible.
(2) There is an intention to complete such intangible assets and use or sell it.
(3) The way that the intangible assets generate economic interests can prove that the product using such intangible
assets or the intangible assets itself have market. If the intangible assets are to be used internally, its usefulness
should be proved.
(4) The Company has sufficient technical and financial resources and other resources to support the completion of the
development of such intangible assets and the capacities to use or sell such intangible assets.
(5) The expenditure attributed to the development phase of such intangible assets can be reliably measured.
20. Amortization methods for long-term expenses to be apportioned
The long-term expenses to be apportioned are amortized in an average manner in the benefit period.
1. The prepaid rent charge of the fixed assets for operation is amortized in an average manner according to the term
provided in the rent contract or other reasonable method.
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2. The expenditures on the improvement of operating leased fixed assets are amortized in an average manner according
to the shorter one of the remaining part of the lease term and the remaining service life.
21. Transfer of the assets with repurchase conditions
If the Company signs a repurchase agreement when selling products or transferring other assets, whether the products
sold meet the conditions for income confirmation is judged according to the articles of the agreement. If the repurchase is
a financing transaction, the Company does not confirm sales income when delivering products or assets. If the
repurchase price is higher than the selling price, interests are accrued for the difference during repurchase period and
recorded into financial expenses.
22. Anticipation liabilities
In the case that the Company is involved in proceedings like lawsuits, debt guarantee, loss contracts, restructuring and so
on, the proceedings are confirmed as anticipation liabilities if they very possibly need delivery of assets or provision of
labor service and their amount can be measured reliably.
(1) Confirmation standards for anticipation liabilities
The obligations related to contingencies, which meet all the following conditions, are confirmed by the Company as
anticipation liabilities.
The obligation is a current obligation undertaken by the Company;
The fulfillment of the obligation is very likely to cause an outflow of economic interests from the Company;
The amount of the obligation can be measured reliably.
(2) Measurement method of anticipation liabilities
Initial measurement is carried out to anticipation liabilities of the Company according to the optimum estimation amount of
the required expense when relevant obligations are fulfilled.
When determining the optimum estimation amount, the Company considers in a comprehensive way the factors related to
contingencies like risks, uncertainties and time value of currency. Where there are great influences of time value of
currency, the optimum estimation amount is determined after discounting relevant future cash flows.
The optimum estimation amount is determined according to different situations as follows:
Where there is a continuous range (or interval) of the required expense and different results in the range have same
possibility to occur, the optimum estimation amount is determined according to the intermediate value of the range, i.e. the
average of the maximal and the minimum amounts.
Where there is no continuous range (or interval) or there is a continuous range but different results have different
possibilities to occur, if contingencies involve individual proceedings, the optimum estimation amount is the amount most
likely to occur, and if contingencies involve several proceedings, the optimum estimation amount is determined according
to various possible results and the calculation of relevant probabilities.
If all expenses or part of them, which are used by the Company for paying off anticipation liabilities, are anticipated to be
compensated by a third party and compensation amount is basically sure to be received, the compensation amount is
confirmed separately as an asset, which should not exceed the book value of the anticipation liabilities.
23. Share payment and equity instruments
(1) Types of share payment
The payment of employees’ shares settled with equity is recorded into costs and expenses and capital public reserve
(other capital public reserves) according to the fair value of the equity instruments on the grant date (the method of the
determination of the grant date is specifically set) and the subsequent changes of the fair value will not be confirmed. No
adjustments will be made to the confirmed costs and expenses and total owners' equity after the option becomes
exercisable. The share capital and share capital premium are confirmed according to the conditions of the exercise of the
options and the capital public reserve confirmed during the vesting period (other capital public reserve) is carried forward.
Among these: For the share payment in exchange for the employees' services, relevant assets costs and the current
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expenses are recorded on each balance sheet date within the vesting period, on the basis of the best estimation of the
number of exercisable equity instruments and according to the fair value of the equity instruments on the grant date and
as capital public reserve (other capital public reserve). The share payment in exchange for the service of other parties is
measured according to the fair value of the service exchanged from other parties. If such fair value cannot be measured
reliably but the fair value of the equity instruments can be measured reliably, the above share payment is measured
according to the fair value of the equity instruments on the date of service obtainment and recorded into relevant assets
cost or expense and as other capital public reserve in the capital public reserve.
For the share payment involving employees settled in cash, measurement is made once again on the fair value of the
equity instruments on each balance sheet date to determine costs and expenses and wage payable. On each balance
sheet date within the vesting period, measurement is made according to the fair value of the liabilities borne as calculated
and determined on the basis of the share or other equity instruments and on the basis of the best estimation of the number
of exercisable equity instruments. The results are recorded into relevant assets costs or expenses and as wage payable.
No cost expenses will be confirmed after the option becomes exercisable. The fair value of the wage payable is
re-measured and the changes of such fair value are recorded into gains and losses from changes of fair value.
(2) Methods for determining the fair value of equity instruments
For equity instruments such as the granted option, which exist in the active market, the fair value is determined according
to their prices in the active market. For those not existing in the active market, the fair value is determined by adopting the
option pricing model, which should be selected in consideration of the following factors: a. option exercise price; b. option
period; c. the current price of the underlying shares; d. the predicted fluctuation rate of the share price, e. the estimated
dividend of the share; f. risk free rate in the option period; g. payment of shares of installment options.
(3) Basis for the determination of the best estimation of the exercisable equity instruments
On each balance sheet date in the vesting period, the Company should make the best estimation on the basis of the latest
subsequent information on the changes of the number of the employees with exercisable option and adjust the number of
the exercisable equity instruments. On the vesting date, the ultimate number of the anticipated exercisable equity
instruments should be consistent with the actual quantity of the exercisable options.
The accumulative amount of the cost expenses to be confirmed in the current period is calculated on the basis of the fair
value of the above equity instruments and the anticipated exercisable equity instruments. Such amount deducted by the
accumulative confirmed amount in the last period is taken as the amount of cost expenses to be confirmed in the current
period.
(4) Accounting treatments for implementing, modifying and terminating the share payment plan
24. Repurchase of the Company's shares
25. Incomes
(1) Standards for confirmation time of sales income
The realization of the income from the sale of commodities is confirmed when the Company has transferred the main risks
and consideration in the ownership right of the commodities to the purchaser, the Company has not retained any further
management right connected to the ownership right nor implement effective control over the sold commodities, the
amount of the revenue can be reliably measured, relevant economic interests are likely to flow into the enterprise, and
relevant costs incurred or to be incurred can be measured reliably.
(2) Basis for confirmation of income from transfer of asset use right
For economic interests related to transactions, which are very likely to flow into the Company and whose amount can be
reliably measured, the amount of the income from the transfer of asset use right is determined according to the conditions
as follows:
(1) The amount of interest income should be determined according to the time and actual interest rate of other people
using the monetary fund of the enterprise.
(2) The amount of the income from use fee is determined in accordance with the time and method of charges as agreed in
relevant contract or agreement.
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(3) The amount of the rent income is determined by equally allocating the total income of the lease contract in the entire
contract period without deducting the rent-free period.
(3) Basis for and method of determining contract completion progress when confirming income from labor
service and construction contracts by percentage-of-completion method
Where the results of the labor services provided on the balance sheet date can be estimated reliably, the income from the
provision of labor services is confirmed with the percentage of completion method. The completion progress of a labor
service transaction is determined by surveying the work completed.
The total amount of the income from the provision of labor services is determined according to the price money received
or receivable of a relevant contract or agreement, unless the price money received or receivable of a relevant contract or
agreement is unfair. The labor services income of the current period is confirmed on the balance sheet date according to
the resulted amount of the total amount of income from provision of labor services times the completion percentage and
deducted by the accumulative amount of the confirmed income from provision of labor services in previous accounting
periods. At the same time, the labor cost of the current period is carried forward according to the estimated total cost of the
provision of labor services times the completion percentage and deducted by the accumulative amount of the confirmed
labor cost in previous accounting periods.
Where the results of the provision of labor services on the balance sheet date cannot be estimated reliably, such results
are processed respectively according to the following conditions:
(1) Where it is estimated that the labor services cost incurred can be compensated, the income from provision of labor
services is confirmed according to the amount of the labor services cost incurred and the same amount is transferred
into the labor cost.
(2) Where it is estimated that the labor services cost incurred cannot be compensated, the labor services cost incurred is
recorded into current gains and losses and no income is confirmed.
26. Government subsidies
(1) Type
Government subsidies refer to the monetary assets and non-monetary assets obtained by the Company from the
government free of charge. The subsidies are divided into those related to assets and those related to profits.
(2) Accounting treatment method
The government subsidies related to the purchase and construction of long-term assets like fixed and intangible assets
are confirmed as deferred profits and recorded by phases into the non-operating income according to the service life of
the assets purchased and constructed.
The government subsidies related to profits, used to compensate relevant expenses or losses in later periods, are
confirmed as deferred profits when they are obtained; the subsidies, used to compensate relevant expenses or losses
having occurred, are confirmed as the current non-operating income when they are obtained.
27. Deferred income tax assets and liabilities
(1) Basis for the confirmation of deferred incomes tax assets
The Company confirms the deferred incomes tax assets generated from the deductible temporary difference.
(2) Basis for confirmation of deferred income tax liabilities
The temporary difference between the tax payable not paid of the current period and that of previous periods is confirmed
by the Company as deferred income tax liabilities. The temporary difference generated from goodwill transactions or
transactions not of enterprise mergers, which, at the transaction time, do not influence accounting profits or the amount of
the tax payable, is not included.
28. Operating lease and financing lease
(1) Accounting treatment of operating lease
(1) The fee paid by the Company for rented assets is apportioned by the straight-line method in the whole lease term
without deduction of the rent-free period and recorded into current expenses. The initial direct expenses related to
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lease transactions, paid by the Company, are recorded into current expenses.
In case that the leasing party undertakes the lease-related expenses that should be undertaken by the Company, the
Company deducts the expenses from the total lease fee and the lease fee after deduction is apportioned in the lease
term and recorded into current expenses.
(2) The lease fee received by the Company from leasing of assets is apportioned by the straight-line method in the whole
lease term without deduction of the rent-free period and recorded into the lease income. The initial direct expenses
related to lease transactions, paid by the Company, are recorded into current expenses. Those with significant
amounts are capitalized and recorded by periods into current profits in the whole lease term according to the same
basis for confirmation of the lease income.
In case that the Company undertakes the lease-related expenses which should be undertaken by the lessee, the
Company deducts the expenses from the total lease income and the lease expenses after deduction are allocated in
the lease term.
(2) Accounting treatment of financing lease
(1) Assets acquired under financing lease: Between the fair value of rented assets and the minimum lease payment, the
Company adopts the lower one as the booked value of the rented assets, the minimum lease payment as the
recording value of long-term accounts payable, and the difference between the two as financing expenses yet to be
confirmed.
The financing expenses yet to be confirmed are apportioned by the Company by the actual interest rate method in the
lease term of the assets and recorded into accounting expenses. Assets given out under financing lease:
(2) Assets leased out under financing lease: The difference between the total unguaranteed residual value of the financing
lease payment receivable and the current value is confirmed by the Company on the lease-beginning date as
financing profits yet to be realized and as the lease income in future lease periods. The initial direct expenses related
to lease transactions are recorded into the initial calculation of financing lease payment receivable and the amount of
profits confirmed in the lease term is reduced.
29. Assets held for sale
(1) Criteria for determining the assets held for sale
(2) Accounting treatments for assets held for sale
30. Securitization of assets
31. Hedge accounting
32. Changes in main accounting policies and accounting estimates
Are there any changes in main accounting policies and accounting estimates during the report period?
□ Yes √ No □ Not applicable
(1) Changes of accounting policies
Are there any changes in main accounting policies during the report period?
□ Yes √ No □ Not applicable
(2) Changes of accounting estimates
Are there any changes in main accounting estimates during the report period?
□ Yes √ No □ Not applicable
33. Corrections of previous accounting errors
Are there any previous accounting errors corrected during the report period?
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□ Yes √ No □ Not applicable
(1) Retrospective restatement
Are there any previous accounting errors corrected by the retrospective restatement method during the report period?
□ Yes √ No □ Not applicable
(2) Prospective application
Are there any previous accounting errors corrected by the prospective application method during the report period?
□ Yes √ No □ Not applicable
34. Other main accounting policies, accounting estimates and preparation methods of financial
statements
(V) Taxes
1. Main tax types and tax rates imposed on the Company
Tax category Basis Tax rate
Value-added tax Income from sale of products 17
Consumption tax 0
Operating tax Incomes from leasing, income from loan interest 5
Urban maintenance and construction tax Value-added tax and operating tax payable 7
Enterprise income tax Taxable income 25
Education surtax Value-added tax and operating tax payable 3
Tax rates imposed on the Company's subsidiaries and branches
The enterprise income tax rate applicable to the Company’s subsidiaries, namely, Xi’an SEG Electronics Market
Management Co., Ltd., Suzhou SEG Electronics Market Management Co., Ltd., Changsha SEG Development Co., Ltd.,
Shenzhen SEG Credit Co., Ltd., Shenzhen SEG E-commerce Co., Ltd., Xi’an Hairong SEG Electronics Market Co., Ltd.
and Shenzhen SEG Nanjing Electronics Market Management Co., Ltd. is 25%.
2. Tax preference and official documents
In accordance with the Notice of the State Council on the Implementation of Interim Enterprise Income Tax Preference
Policies No. 39 (Guo Fa 2007), from January 1, 2008, the enterprises enjoying low tax rate policies should gradually adopt
the statutory tax rate within 5 years after the new tax law is implemented. For the enterprises enjoying an enterprise
income tax rate of 15%, the rate should be 18% in 2008, 20% in 2009, 22% in 2010, 24% in 2011 and 25% in 2012; for
those enjoying a rate of 24%, the rate should be 25% from 2008; the enterprises in Shenzhen Special Economic Zone
should enjoy a lower tax rate of 15% in accordance with the Regulations of the Special Economic Zones of Guangdong
Province. The enterprise income tax rate of the Company in 2012 was 25% in accordance with the above-mentioned
policies.
3. Notes
(VI) Enterprise Merger and Consolidated Financial Statements
Notes on enterprise merger and consolidated financial statements:
Unless specifically noted, the unit for amounts in the formulas of this section is RMB thousand yuan.
1. Information on subsidiaries
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(1) The subsidiaries acquired through establishment or investment
Unit: Yuan
Balance after the difference
Amount of between the losses of the
minority period allocated to minority
Actual shareholders’ shareholders and the
Balance of Voting Financial
investment Share-holding Minority equity period-beginning shares
Full name of Type of Place of Nature of Registered the net actual right statements
Currency Business scope at the end proportion shareholders' offsetting enjoyed by minority
subsidiary subsidiary registration business capital investment in proportion consolidated
of the (%) equity minority shareholders, in case the
subsidiaries (%) or not
period shareholders’ former is more than the
gains and latter, is offset against the
losses owners’ equity of the parent
company
Xi'an SEG Domestic trade;
Service
Electronic Subsidiary Xi'an 300.00 RMB material supply and 195.00 65% 65% Yes 277.16
industry
Market Co., Ltd. marketing
Shenzhen SEG
Electronics Domestic trade;
Service
Market Subsidiary Shenzhen 300.00 RMB material supply and 210.00 70% 70% Yes 120.28
industry
Management marketing
Co., Ltd.
Suzhou SEG Domestic trade;
Service
Electronic Subsidiary Su Zhou 300.00 RMB material supply and 135.00 45% 45% Yes 353.55
industry
Market Co., Ltd. marketing
Shenzhen
Mellow Orange Hotel management,
Indirect Service
Business Hotel Shenzhen 1,000.00 RMB consultancy and 1,000.00 66.58% 66.58% Yes
subsidiary industry
Management property management
Co., Ltd.
Specialized in small
loans within the
Shenzhen SEG Financial administrative region
Subsidiary Shenzhen 15,000.00 RMB 8,100.00 51.7046% 51.7046% Yes 6,820.91
Credit Co., Ltd. industry of Shenzhen (not
receiving the deposits
from the public)
Shenzhen SEG
Engaging in
E-Commerce Subsidiary Shenzhen E-commerce 4,800.00 RMB 1,530.00 51% 51% Yes 852.61
E-commerce
Co., Ltd.
Shenzhen SEG Lease of market
Electronics facilities, property
Service
Market Subsidiary Nanjing 2,000.00 RMB management, sales of 2,000.00 100% 100% Yes
industry
Management electronic products,
Co., Ltd. advertising, etc.
Xi'an Hairong Property lease, sales
Service
SEG Electronic Subsidiary Xi’an 300.00 RMB of electronic products, 153.00 51% 51% Yes 32.28
industry
Market Co., Ltd. advertising, etc.
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Additional notes on the subsidiaries acquired by establishment or investment:
Half of the directors, the Chairman of the Board, the General Manager, the Chief Financial Officer and the management team of Suzhou SEG Electronic Market Management Co., Ltd.
are all dispatched by the Company that actually controls the operation of Suzhou SEG, so Suzhou SEG was included into the consolidation scope.
Note: Shenzhen SEG Electronics Market Management Co., Ltd. has the registered capital of RMB 48 million with the initial contribution of RMB 30 million, in which the Company made a
contribution of RMB 15.3 million and enjoyed 51% of its shares.
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(2) Subsidiaries acquired through the merger of enterprises under the control of a same entity
Unit: Yuan
Balance after the
difference between
the losses of the
period allocated to
Amount of minority
minority shareholders and
Actual
Balance of Voting Financial shareholders’ the
investment Minority
Full name of Type of Place of Nature of Registered Business the net actual Share-holding right statements equity offsetting period-beginning
Currency at the end shareholders'
subsidiary subsidiary registration business capital scope investment in proportion (%) proportion consolidated minority shares enjoyed by
of the equity
subsidiaries (%) or not shareholders’ minority
period
gains and shareholders, in
losses case the former is
more than the latter,
is offset against the
owners’ equity of the
parent company
Shenzhen
SEG Baohua Property lease
Service
Enterprise Subsidiary Shenzhen 3,080.88 RMB and 2,051.25 66.58% 66.58% Yes 2,404.05
industry
Development management
Co., Ltd.
Shenzhen
Investment in
SEG
industrial and
Industrial Subsidiary Shenzhen Investment 2,550.00 RMB 2,378.00 91.79% 91.79% Yes 209.85
commercial
Investment
businesses
Co., Ltd.
Additional notes on the subsidiaries acquired through the merger of enterprises under the control of a same entity:
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(3) Subsidiaries acquired through the merger of enterprises not under the control of a same entity
Unit: Yuan
Balance after the
difference between
the losses of the
period allocated to
Amount of minority
minority shareholders and
Actual Balance of Financial
Voting right Minority shareholders’ the period-beginning
Full name of Type of Place of Nature of Registered Business investment the net actual Share-holding statements
Currency proportion sharehold equity offsetting shares enjoyed by
subsidiary subsidiary registration business capital scope at the end of investment in proportion (%) consolidate
(%) ers' equity minority minority
the period subsidiaries d or not
shareholders’ shareholders, in
gains and losses case the former is
more than the latter,
is offset against the
owners’ equity of the
parent company
Changsha
SEG Service Property
Subsidiary Changsha 3,500.00 RMB 6,900.00 46% 51% Yes 5,895.79
Development industry lease
Co., Ltd.
Additional notes on subsidiaries acquired through the merger of enterprises not under the control of a same entity:
The capital structure of Changsha SEG Development Co., Ltd. at present is as follows: the Company is the first majority shareholder, holding 46% shares of Changsha SEG, Jinhong
Group Co., Ltd. holds 40% shares and Huaya Management Co., Ltd. holds 14% shares, among which, Jinhong Group Co., Ltd. and Huaya Management Co., Ltd. have no associated
relationship with each other. Half of the directors, the Chairman of the Board, the General Manager, the Chief Financial Officer and the management team of Changsha SEG
Development Co., Ltd. are all dispatched by the Company that actually controls the operation of Changsha SEG, so Changsha SEG is included into the consolidation scope.
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2. Special purpose entities and operating entities whose share-controlling right is formed
through entrusted operation or lease taking
□ Applicable □ Not applicable
Special purpose entities and operating entities whose share-controlling right is formed through entrusted operation or
lease taking
There were no special purpose entities or operating entities whose share-controlling right was formed through entrusted
operation or lease taking in the report period.
3. Information on alteration of the consolidation scope
Notes on the alteration of the consolidated statement scope:
□ Applicable □ Not applicable
4. Entities newly included in the consolidation scope and entities not included in the
consolidation scope in the report period
Subsidiaries, special-purpose entities and operating entities whose share-controlling right is formed through trustee
operation or lessee, which are included in the consolidation scope in the current period
Unit: Yuan
Name Period-end net assets Net profits of the current period
Subsidiaries, special-purpose entities and operating entities whose share-controlling right is formed through trusted
operation or lease taking, which are excluded from the consolidation scope in the current period
Unit: Yuan
Net profits from the beginning of the year to the
Name Net assets on the disposal date
disposal date
Additional notes on the entities newly included in the consolidation scope and the entities not included in the consolidation
scope:
5. Merger of enterprises under the control of a same entity in the report period
Unit: Yuan
Judging basis for Cash flow of
Incomes from the
the merger of Net profits from operating activities
beginning of the
Merged party enterprises under Actual controller the current period from the current
current period to
the control of a to the merger date period to the
the merger date
same entity merger date
Additional notes on the merger of enterprises under the control of a same entity:
6. Merger of enterprises not under the control of a same entity in the report period
Unit: Yuan
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Merged party Goodwill amount Calculation method of goodwill
Other explanations of the merger of enterprises not under the control of a same entity:
7. Subsidiaries reduced due to the sale of equities over which the Company has lost the control
in the report period
Full name of subsidiary Sale date Method for confirming losses and gains
Additional notes on the subsidiaries reduced because of the sale of equities over which the Company has lost control:
8. Counter purchases in the report period
Method for confirming the goodwill
Judging basis for being a Method for confirming the of the consolidation or the losses
Shell borrower
counter purchase consolidated cost and gains that are calculated in the
current period
Other explanations of the counter purchases:
9. Acquisition and merger in the report period
Unit: Yuan
Type of acquisition and merger Merged assets Merged liabilities
Acquisition and merger of enterprises under
Item Amount Item Amount
the control of a same entity
Acquisition and merger of enterprises not
Item Amount Item Amount
under the control of a same entity
Other explanations of acquisition and merger:
10. Translation exchange rate for the main items of the financial statements of overseas
operating entities
(VII) Notes on the Main Items of Consolidated Financial Statements
1. Monetary capital
Unit: Yuan
Period-end amount Period-beginning amount
Item Amount in
Amount in foreign Exchan Exchange
Amount in RMB foreign Amount in RMB
currency ge rate rate
currency
Cash: -- -- 375,938.98 -- -- 355,217.98
RMB -- -- 369,151.83 -- -- 348,813.86
USD 967.11 6.3393 6,130.77 973.00 6.3009 6,130.78
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Period-end amount Period-beginning amount
Item Amount in
Amount in foreign Exchan Exchange
Amount in RMB foreign Amount in RMB
currency ge rate rate
currency
HKD 803.11 0.8173 656.38 337.17 0.8107 273.34
Bank deposit: -- -- 578,790,582.50 -- -- 644,074,821.13
RMB -- -- 578,790,582.50 -- -- 643,836,123.67
HKD 294,433.77 0.8107 238,697.46
Other monetary capital -- -- 0.00 -- -- 9,159.67
RMB -- -- 0.00 -- -- 9,159.67
Total -- -- 579,166,521.47 -- -- 644,439,198.78
Special explanations of the monetary capital which has restricted utilization due to mortgage, pledge or freeze and
potential risks in recovery and is kept overseas:
2. Trading financial assets
(1) Trading financial assets
Unit: Yuan
Item Period-end fair value Period-beginning fair value
Trading bond investment
Trading equity instrument investment
Financial assets measured by fair value and with
changes included in the current gains and losses
Derivative financial assets
Hedging instruments
Others
Total 0.00 0.00
(2) Trading financial assets with restricted liquidity
Unit: Yuan
Item Restrictions on sale or liquidity Period-end amount
(3) Notes on the hedging instruments and relevant hedging transactions
3. Notes receivable
(1) Type of notes receivable
Unit: Yuan
110
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Type Period-end amount Period-beginning amount
Total 0.00 0.00
(2) Pledged notes receivable at the end of the current period
Unit: Yuan
Drawer Date of draft Due date Amount Remarks
Total -- -- 0.00 --
Note:
(3) Notes that have been transferred to accounts receivable for the drawer is incapable to honor the agreement
and notes that the Company has endorsed to another party at the end of the period
Unit: Yuan
Drawer Date of draft Due date Amount Remarks
Total -- -- 0.00 --
Note:
Notes that are undue but have been endorsed to other parties by the Company
Unit: Yuan
Drawer Date of draft Due date Amount Remarks
Total -- -- 0.00 --
Note:
Notes on discounted or pledged trade acceptance:
4. Dividends receivable
Unit: Yuan
Period-beginning Increase in the current Decrease in the current
Item Period-end amount
amount period period
Dividend receivable
426,516.21 0.00 0.00 0.00
aged under one year
Including:
SEG Logistics 426,516.21
Dividend receivable
0.00 0.00 0.00 0.00
aged under one year
111
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Period-beginning Increase in the current Decrease in the current
Item Period-end amount
amount period period
Including: -- -- -- --
Total 426,516.21 0.00 0.00 0.00
Note:
5. Interest receivable
(1) Interest receivable
Unit: Yuan
Period-beginning Increase in the current Decrease in the
Item Period-end amount
amount period current period
Total 0.00 0.00 0.00 0.00
(2) Overdue interest
Unit: Yuan
Lending unit Overdue time (days) Overdue interest amount
Total -- 0.00
(3) Notes on interest receivable
6. Accounts receivable
(1) Accounts receivable disclosed according to different types
Unit: Yuan
Period-end amount Period-beginning amount
Book balance Bad debt provision Book balance Bad debt provision
Type
Proportion Proportion Proportion
Amount Amount Amount Amount Proportion (%)
(%) (%) (%)
Accounts receivable with a
significant amount
individually, for which bad 10,212,173.07 35.77% 10,181,647.36 99.7% 10,212,173.07 41.74% 10,181,647.36 99.7%
debt provision is separately
accrued
Accounts receivable for which bad debt provision is accrued according to different combinations
Bad debt provision accrued
for Combination 1 by the 13,550,182.14 47.46% 9,982,141.91 40.8%
aging analysis method
112
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Period-end amount Period-beginning amount
Book balance Bad debt provision Book balance Bad debt provision
Type
Proportion Proportion Proportion
Amount Amount Amount Amount Proportion (%)
(%) (%) (%)
Subtotal of combinations 13,550,182.14 47.46% 0.00 9,982,141.91 40.8% 0.00
Accounts receivable with an
insignificant amount
individually, for which bad 4,787,691.18 16.77% 3,910,306.44 81.67% 4,270,306.44 17.46% 3,910,306.44 91.57%
debt provision is separately
accrued
Total 28,550,046.39 -- 14,091,953.80 -- 24,464,621.42 -- 14,091,953.80 --
Notes on types of accounts receivable:
Accounts receivable with a significant amount individually, for which bad debt provision is separately accrued at the end of
the period
√ Applicable □ Not applicable
Unit: Yuan
Contents of accounts receivable Book balance Bad debt provision Accrual proportion Reason for accrual
The age is more
than 5 years and
Jiangsu Unicom 3,092,011.09 3,092,011.09 100% the account is
impossible to be
recovered.
The two companies
are in dispute and
Guangzhou Jiajie Technology Co.,
3,052,571.00 3,022,045.29 99% the account is
Ltd.
unlikely to be
recovered.
The age is more
than 5 years and
Shenzhen Shuangxionghui Industry
2,160,725.63 2,160,725.63 100% the account is
Co., Ltd.
impossible to be
recovered.
The age is more
than 5 years and
Shenzhen Liyuanshun Industrial Co.,
1,906,865.35 1,906,865.35 100% the account is
Ltd.
impossible to be
recovered.
Total 10,212,173.07 10,181,647.36 --
Other accounts receivable in the combination, for which bad debt provision is accrued by the aging analysis method:
√ Applicable □ Not applicable
Unit: Yuan
113
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Period-end amount Period-beginning amount
Book balance Book balance
Age Bad debt
Proportion Bad debt provision Proportion provision
Amount Amount
(%) (%)
Less than one year
Including: -- -- -- -- -- --
Less than one year 13,550,182.14 100% 0.00 9,982,141.91 100% 0.00
Subtotal of the
accounts aged under 13,550,182.14 100% 0.00 9,982,141.91 100% 0.00
1 year
1-2 years
2-3 years
Over 3 years
3-4 years
4-5 years
Over 5 years
Total 13,550,182.14 -- 9,982,141.91 --
Accounts receivable in the combination, for which bad debt provision is accrued by the balance percentage analysis
method:
□ Applicable □ Not applicable
Accounts receivable in the combination, for which bad debt provision is accrued by other methods:
□ Applicable □ Not applicable
Accounts receivable with an insignificant amount individually, for which bad debt provision is separately accrued at the
end of the period
□ Applicable □ Not applicable
(2) Accounts receivable transferred back or recovered in the current report period
Unit: Yuan
Accumulated bad debt
Reason for Basis for confirming
Contents of accounts provision accrued Amount of transferring
transferring back or original bad debt
receivable before transferring back or recovery
recovery provision
back or recovery
Total -- -- 0.00 --
Accounts receivable with a significant amount individually, or with an insignificant amount individually but for which bad
debt provision is separately accrued:
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Contents of accounts
Book balance Bad debt amount Accrual proportion (%) Reason
receivable
Total -- --
Accounts receivable with insignificant individual amount but entailing great risk as a combination based on credit risk
characteristics:
(3) Accounts receivable charged off in the current report period
Unit: Yuan
Whether being
Nature of accounts Amount being Reason for being incurred due to
Name of company Charge-off date
receivable charged off charged off related
transactions
Total -- -- 0.00 -- --
Notes on accounts receivable charged off:
(4) Shareholder units that hold 5% or more voting shares in the accounts receivable in the current report period
□ Applicable □ Not applicable
(5) Units of top five accounts receivable
Unit: Yuan
Percentage in the total
Relationship with the
Name of company Amount Duration amount of accounts
Company
receivable (%)
Shenzhen Runneng
Customer 4,529,331.17 Less than one year 15.86%
Digital Co., Ltd.
Jiangsu Unicom Customer 3,092,011.09 Over 5 years 10.83%
Guangzhou Jiajie
Customer 3,052,571.00 2-3 years 10.69%
Technology Co., Ltd.
Shenzhen Wodewo
Customer 2,171,299.31 Less than one year 7.61%
Trading Co., Ltd.
Shenzhen
Shuangxionghui Customer 2,160,725.63 Over 5 years 7.57%
Industry Co., Ltd.
Total -- 15,005,938.20 -- 52.56%
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
(6) Accounts receivable from related parties
Unit: Yuan
Percentage in the total
Relationship with the
Name of company Amount amount of accounts
Company
receivable (%)
Total -- 0.00 0%
(7) Accounts receivable with terminated confirmation
Unit: Yuan
Amount of the termination of Losses and gains related with the
Item
confirmation termination of confirmation
Total 0.00 0.00
(8) If assets are to be securitized taking other accounts receivable as underlying assets,, the involved amount of
assets and liabilities should be listed in the following table
Unit: Yuan
Item Ending amount
Capital
Subtotal of assets 0.00
Liability:
Subtotal of liabilities 0.00
7. Other receivables
(1) Other accounts receivable disclosed according to types
Unit: Yuan
Period-end amount Period-beginning amount
Book balance Bad debt provision Book balance Bad debt provision
Type
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Other receivables with a
significant amount
individually, for which bad 23,413,223.34 48% 23,413,223.34 100% 23,413,223.34 43.91% 23,413,223.34 100%
debt provision is separately
accrued
Other receivables for which bad debt provision is accrued according to different combinations
Combination 1 15,149,998.18 31.06% 54,245.15 0.36% 16,051,724.24 30.1% 1,766.67 0.01%
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Period-end amount Period-beginning amount
Book balance Bad debt provision Book balance Bad debt provision
Type
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Subtotal of combinations 15,149,998.18 31.06% 54,245.15 0.36% 16,051,724.24 30.1% 1,766.67 0.01%
Other receivables with an
insignificant amount
individually, for which bad
10,213,154.09 20.94% 6,711,260.46 65.71% 13,859,446.17 25.99% 8,898,684.97 64.21%
debt provision is separately
accrued at the end of the
period
Total 48,776,375.61 -- 30,178,728.95 -- 53,324,393.75 -- 32,313,674.98 --
Notes on types of other receivables:
Other receivables with a significant amount individually, for which bad debt provision is separately accrued at the end of
the period
√ Applicable □ Not applicable
Unit: Yuan
Content of other
Book balance Bad debt amount Accrual proportion Reason
receivables
The age is more than 5
Yangjiang Yuntong
8,530,276.35 8,530,276.35 100% years and the account is
Grease Co., Ltd.
impossible to be recovered.
Creditor’s right The age is more than 5
transferred in by SEG 5,904,271.52 5,904,271.52 100% years and the account is
Communications impossible to be recovered.
The age is more than 5
Shenzhen Lianjing
5,697,287.51 5,697,287.51 100% years and the account is
Trade Co., Ltd.
impossible to be recovered.
The age is more than 5
Shenzhen Top Industry
3,281,387.96 3,281,387.96 100% years and the account is
Co., Ltd.
impossible to be recovered.
Total 23,413,223.34 23,413,223.34 -- --
Other accounts receivable in the combination, for which bad debt provision is accrued by the aging analysis method:
√ Applicable □ Not applicable
Unit: Yuan
Ending amount Beginning amount
Book balance Book balance
Age
Bad debt provision Bad debt provision
Proportion Proportion
Amount Amount
(%) (%)
Less than one year
Including:
Less than one year 14,069,856.10 92.87% 16,028,063.53 99.85%
Subtotal of the accounts
14,069,856.10 92.87% 0.00 16,028,063.53 99.85% 0.00
aged under 1 year
1-2 years 1,078,555.10 7.12% 53,927.76 12,073.73 0.08% 449.27
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Ending amount Beginning amount
Book balance Book balance
Age
Bad debt provision Bad debt provision
Proportion Proportion
Amount Amount
(%) (%)
2-3 years 10,000.00 0.06% 1,000.00
Over 3 years 1,586.98 0.01% 317.40 1,586.98 0.01% 317.40
3-4 years 0.00 0% 0.00 0% 0.00
4-5 years
Over 5 years
Total 15,149,998.18 -- 54,245.15 16,051,724.24 -- 1,766.67
Accounts receivable in the combination, for which bad debt provision is accrued by the balance percentage analysis
method:
□ Applicable √ Not applicable
Other accounts receivable in the combination, for which bad debt provision is accrued by other methods:
□ Applicable □ Not applicable
Other accounts receivable with an insignificant amount individually, for which bad debt provision is separately accrued
□ Applicable □ Not applicable
(2) Other accounts receivable transferred back or recovered in the report period
Unit: Yuan
Accumulated bad debt
Reason for Basis for confirming
Content of other provision accrued Amount of transferring
transferring back or original bad debt
receivables before transferring back or recovery
recovery provision
back or recovery
Total -- -- 0.00 --
Bad debt provision accrued at the end of the period for the accounts receivable with a significant amount individually or
those with an insignificant amount individually but have separate impairment tests:
Contents of accounts
Book balance Bad debt amount Accrual proportion (%) Reason
receivable
Total -- --
Other accounts receivable with an insignificant amount individually but entailing great risk as a combination based on
credit risk characteristics:
(3) Other receivables charged off in the current report period
Unit: Yuan
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Whether being
Amount being Reason for being
Name of company Other receivables Charge-off date incurred due to
charged off charged off
related transactions
Total -- -- 0.00 -- --
Notes on other accounts receivable charged off:
(4) Shareholder units that hold 5% or more voting shares in other accounts receivable of the current report
period
√ Applicable □ Not applicable
Unit: Yuan
Period-end amount Period-beginning amount
Name of company Bad debt provision Bad debt provision
Book balance Book balance
accrued accrued
Shenzhen SEG Group Co., Ltd. 86,000.00 86,000.00
Total 86,000.00 0.00 86,000.00 0.00
(5) Properties or contents of other accounts receivable with significant amount
Unit: Yuan
Properties or contents
Percentage in the total amount of
Name of company Amount of the accounts
other accounts receivable (%)
receivable
Total 0.00 -- 0%
Note:
(6) Units of top five other receivables
Unit: Yuan
Percentage in the total
Relationship with the
Name of company Amount Duration amount of other accounts
Company
receivable (%)
Yangjiang Yuntong Business related
8,530,276.35 Over 5 years 17.49%
Grease Co., Ltd. organization
Creditor’s right
Business related
transferred in by SEG 5,904,271.52 Over 5 years 12.1%
organization
Communications
Shenzhen Lianjing Business related
5,697,287.51 Over 5 years 11.68%
Trade Co., Ltd. organization
Shenzhen Top Industry Business related
3,281,387.96 Over 5 years 6.73%
Co., Ltd. organization
Yunsen Trading Debt restructuring of
1,668,343.74 Over 5 years 3.42%
Company SEG Orient
Total -- 25,081,567.08 -- 51.42%
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
(7) Accounts receivable from other related parties
Unit: Yuan
Percentage in the total
Relationship with the
Name of company Amount amount of other accounts
Company
receivable (%)
Total -- 0.00 0%
(8) Other explanations of accounts receivable with terminated confirmation
Unit: Yuan
Amount of the termination of Losses and gains related with the
Item
confirmation termination of confirmation
Total 0.00 0.00
(9) If assets are to be securitized taking other accounts receivable as underlying assets,, the involved amount of
assets and liabilities should be listed in the following table
Unit: Yuan
Item Ending amount
Capital
Subtotal of assets 0.00
Liability:
Subtotal of liabilities 0.00
8. Advances
(1) Advances listed according to ages
Unit: Yuan
Period-end amount Period-beginning amount
Age Proportion Proportion
Amount Amount
(%) (%)
Less than one
39,053,560.39 99.89% 33,735,611.11 99.88%
year
120
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Period-end amount Period-beginning amount
Age Proportion Proportion
Amount Amount
(%) (%)
1-2 years 35,295.00 0.09% 5,908.60 0.02%
2-3 years 6,868.60 0.02% 35,295.00 0.1%
Over 3 years
Total 39,095,723.99 -- 33,776,814.71 --
Notes on the age of advance payment:
(2) Top five advances
Unit: Yuan
Relationship with the Reason for not being
Name of company Amount Duration
Company settled
Tonmac International
Within one year
Electronics (Suzhou) Shareholder 20,000,000.00 Prepaid rent charge
(including one year)
Co., Ltd.
Xi'an Gaoke (Group)
New West China Within one year
Shareholder 10,000,000.00 Prepaid rent charge
Industrial Development (including one year)
Co., Ltd.
Shenzhen Xinfeipu Within one year Payment in advance
Supplier 3,674,759.00
Network Co., Ltd. (including one year)
Shenzhen Aopurui Payment in advance
Within one year
Information Technology Supplier 1,348,958.00
(including one year)
Co., Ltd.
Shenzhen Dapengniao Within one year Payment in advance
Supplier 843,980.00
Electronics Co., Ltd. (including one year)
Total -- 35,867,697.00 -- --
Notes on main units of advance payment:
(3) Shareholder units that hold 5% or more voting shares in the advance payment of the current report period
□ Applicable □ Not applicable
(4) Notes on advance payment
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
9. Inventory
(1) Classification of inventory
Unit: Yuan
Period-end amount Period-beginning amount
Item Provision for Provision for
Book balance inventory Net book value Book balance inventory price Net book value
price drop drop
Raw materials 243,538.15 243,538.15 410,995.73 410,995.73
Goods in
production
In-stock goods 1,873,641.71 1,873,641.71 218,974.35 218,974.35
Circulating
materials
Consumable
biological assets
Low-cost
127,109.55 127,109.55 3,585.00 3,585.00
consumables
Total 2,244,289.41 0.00 2,244,289.41 633,555.08 0.00 633,555.08
(2) Provisions for inventory impairment
Unit: Yuan
Decrease in the current period
Period-beginning Provision of the Period-end book
Item
book balance year balance
Write back Write off
Raw materials
Goods in production
In-stock goods
Circulating materials
Consumable
biological assets
Total 0.00 0.00 0.00 0.00 0.00
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
(3) Provisions for inventory impairment
Reason for the being
Proportion of the transferred
transferred back to
Basis for provisions for back amount in the
Item provisions for inventory
inventory price drop period-end balance of the
impairment in the current
inventory
period
Raw materials
In-stock goods
Goods in production
Circulating materials
Consumable biological
assets
Notes on inventories:
10. Other current assets
Unit: Yuan
Item Period-end amount Period-beginning amount
Bank financial products 214,140,000.00 201,000,000.00
Total 214,140,000.00 201,000,000.00
Notes on other current assets
11.Financial assets available for sale
(1) Financial assets available for sale
Unit: Yuan
Item Period-end fair value Period-beginning fair value
Bonds available for sale
Equity instruments available for sale 682,076.92 587,411.44
Others
Total 682,076.92 587,411.44
The amount of held-to-maturity investments that are reclassified as financial assets available for sale is RMB 0.00,
with a proportion of 0% in the total reclassified held-to-maturity investment.
123
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Notes on financial assets available for sale:
(2) Long-term bond investment in the financial assets available for sale
Unit: Yuan
Accumulate
Initial Period-begi Interest of
Type of d interest Period-end
Bond Face value investment Due date nning the current
bonds receivable balance
cost balance period
or received
Total -- -- 0.00 -- 0.00 0.00 0.00 0.00
Notes on long-term bond investment in the financial assets available for sale:
12. Held-to-maturity investment
(1) Held-to-maturity investment
Unit: Yuan
Item Period-end book balance Period-beginning book balance
Total 0.00 0.00
Notes on held-to-maturity investment:
(2) Sold but undue held-to-maturity investment in the report period
Unit: Yuan
Percentage in the initial amount of investment
Item Amount
(%)
Total 0.00 --
Notes on sold but undue held-to-maturity investment in the report period
13. Long-term accounts receivable
Unit: Yuan
Type Period-end amount Period-beginning amount
Financing lease
124
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Type Period-end amount Period-beginning amount
Including: unrealized financing
incomes
Goods sold by installment
Services provided by installment
Others
Total 0.00 0.00
125
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
14. Investment on joint ventures and joint operation enterprises
Unit: Yuan
Voting
Name of the Total net assets Total operating
Type of Place of Legal Nature of Registered Shareholding proportion in Total assets at Total liabilities at Net profits of the
invested Currency at the period income of the
company registration person business capital proportion the invested the period end the period end current period
company end current period
company
I. Joint ventures
II. Joint operation enterprises
Shenzhen
SEG Joint stock Hu
Shenzhen Manufacturing 89667.15 RMB 22.45% 22.45% 334,763,056.75 110,035,335.83 224,727,720.92 -2,117,630.25
Samsung Co., company Jianping
Ltd.
Shenzhen
SEG Orient Limited
Service
Industrial liability Shenzhen 200 RMB 20% 20% 186,386.42 673,744.50 -487,358.08
industry
Development company
Co., Ltd.
Shanghai
SEG Limited
Service
Electronic liability Shanghai 500 RMB 35% 35% 51,485,476.64 34,702,914.70 16,782,561.94 19,142,652.35 1,693,321.12
industry
Market Co., company
Ltd.
Notes on the significant differences of main accounting policies and accounting estimates between the joint ventures and joint operation enterprises and the Company
126
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
15. Long-term equity investment
(1) Details on long-term equity investments
Unit: Yuan
Notes on the
Share-holding Voting inconsistency Impairment Cash
Initial
Invested Accounting Period-beginn Increase or Period-end proportion in proportion in between the Impairment provision dividends of
investment
organization method ing balance decrease balance the invested the invested proportion of provision accrued in the the current
cost
unit (%) company (%) shares and current period period
voting rights
Shanghai
SEG
the equity
Electronic 1,750,000.00 8,780,863.41 592,662.39 9,373,525.80 35% 35%
method
Market Co.,
Ltd.
Shenzhen
SEG the equity 215,645,740.5 109,816,748.3 109,341,240.4
-475,507.86 22.45% 22.45%
Samsung Co., method 6 5 9
Ltd.
Shenzhen
SEG Orient
the equity
Industrial 400,000.00 0.00 20% 20%
method
Development
Co., Ltd.
Nanjing
the cost
Shangsha 280,000.00 280,000.00 280,000.00 0.68% 0.68%
method
Co., Ltd.
Shenzhen the cost
Tianji 105,000.00 105,000.00 105,000.00 105,000.00
method
Optoelectroni
127
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Notes on the
Share-holding Voting inconsistency Impairment Cash
Initial
Invested Accounting Period-beginn Increase or Period-end proportion in proportion in between the Impairment provision dividends of
investment
organization method ing balance decrease balance the invested the invested proportion of provision accrued in the the current
cost
unit (%) company (%) shares and current period period
voting rights
c Technology
Industrial Co.,
Ltd.
Anshan Yibai the cost
15,000.00 15,000.00 15,000.00
Co., Ltd. method
Shenzhen
SEG GPS
the cost
Scientific 8,275,321.43 13,515,392.83 13,515,392.83 12.5% 12.5%
method
Navigations
Co., Ltd.
Shenzhen
SEG Telecom the cost
3,679,217.22 3,679,217.22 3,679,217.22 99.17% 99.17% 3,679,217.22
Equipment method
Co., Ltd.
230,150,279.2 136,192,221.8 136,309,376.3
Total -- 117,154.53 -- -- -- 3,784,217.22 0.00 0.00
1 1 4
128
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
(2) Restricted capability to transfer capitals to invested enterprises
Unit: Yuan
Long-term equity investment projects Accumulated amount of the
with restricted capability to transfer Reason for being restricted unconfirmed investment losses in the
capitals to invested enterprises current period
Notes on long-term equity investment:
16. Investment properties
(1) Investment properties calculated by costs
√ Applicable □ Not applicable
Unit: Yuan
Period-beginning book Increase in the current Decrease in the
Item Period-end book balance
balance period current period
I. Total original book
710,910,814.25 0.00 0.00 710,910,814.25
value
1. Houses and
705,673,301.76 705,673,301.76
buildings
2. Land use right 5,237,512.49 5,237,512.49
II. Accumulated
depreciation or
191,971,443.98 9,538,468.03 0.00 201,509,912.01
accumulated
amortization in total
1. Houses and
190,481,118.50 9,493,230.43 199,974,348.93
buildings
2. Land use right 1,490,325.48 45,237.60 1,535,563.08
III. Total book value
of investment 518,939,370.27 -9,538,468.03 0.00 509,400,902.24
properties
1. Houses and
515,192,183.26 -9,493,230.43 505,698,952.83
buildings
2. Land use right 3,747,187.01 -45,237.60 3,701,949.41
129
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Period-beginning book Increase in the current Decrease in the
Item Period-end book balance
balance period current period
IV. Total
accumulated
impairment provision 0.00 0.00 0.00 0.00
for investment
properties
1. Houses and
buildings
2. Land use right
V. Total book value
of investment 518,939,370.27 -9,538,468.03 0.00 509,400,902.24
property
1. Houses and
515,192,183.26 -9,493,230.43 505,698,952.83
buildings
2. Land use right 3,747,187.01 -45,237.60 3,701,949.41
Unit: Yuan
Amount of the current period
Depreciation and amortized amount of the current period 9,538,468.03
Impairment provision amount for the investment properties of the
current period
(2) Investment properties calculated by fair value
□ Applicable □ Not applicable
Notes on the investment properties of which the measurement mode has been changed and that have not gained the
property right certificate and explanations of the reason for not gaining the property right certificate and the estimated time
to gain the property right certificate:
17. Fixed assets:
(1) Information on fixed assets
Unit: Yuan
Period-beginning Decrease in the Period-end book
Item Increase in the current period
book balance current period balance
I. Total original book value 112,028,717.80 1,103,962.96 124,808.00 113,007,872.76
Including: houses and
48,303,175.02 48,303,175.02
buildings
Machinery equipment 28,799,896.39 28,799,896.39
130
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Period-beginning Decrease in the Period-end book
Item Increase in the current period
book balance current period balance
Transportation carriers 3,605,242.24 576,415.00 11,800.00 4,169,857.24
Electronic equipment 29,340,291.29 396,735.00 113,008.00 29,624,018.29
Other equipment 1,980,112.86 130,812.96 2,110,925.82
Increase in the Provision of the Decrease in the Ending balance
Period-beginning current period current period current period
-- of the current
book balance
period
II. Total accumulated
66,101,672.06 0.00 2,280,797.78 118,612.45 68,263,857.39
depreciation:
Including: houses and
24,181,416.23 434,569.58 24,615,985.81
buildings
Machinery equipment 24,266,200.12 1,063,277.16 25,329,477.28
Transportation carriers 1,662,283.69 234,261.31 11,800.00 1,884,745.00
Electronic equipment 15,358,842.59 487,298.40 106,812.45 15,739,328.54
Other equipment 632,929.43 61,391.33 694,320.76
Ending balance
Period-beginning
-- -- of the current
book balance
period
III. Total net book value of
45,927,045.74 -- 44,744,015.37
fixed assets
Including: houses and
24,121,758.79 -- 23,687,189.21
buildings
Machinery equipment 4,533,696.27 -- 3,470,419.11
Transportation carriers 1,942,958.55 -- 2,285,112.24
Electronic equipment 13,981,448.70 -- 13,884,689.75
Other equipment 1,347,183.43 -- 1,416,605.06
IV. Total impairment
0.00 -- 0.00
provision
Including: houses and
--
buildings
Machinery equipment --
Transportation carriers --
131
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Period-beginning Decrease in the Period-end book
Item Increase in the current period
book balance current period balance
Electronic equipment --
Other equipment --
V. Total book value of
45,927,045.74 -- 44,744,015.37
fixed assets
Including: houses and
24,121,758.79 -- 23,687,189.21
buildings
Machinery equipment 4,533,696.27 -- 3,470,419.11
Transportation carriers 1,942,958.55 -- 2,285,112.24
Electronic equipment 13,981,448.70 -- 13,884,689.75
Other equipment 1,347,183.43 -- 1,416,605.06
The depreciation amount of the current period is RMB 2,280,797.78. The amount transferred from construction in
progress to fixed assets is RMB 0 yuan.
(2) Temporarily idle fixed assets
Unit: Yuan
Accumulated Impairment
Item Initial book value Net book value Remarks
depreciation provision
Houses and
0.00
buildings
Machinery
0.00
equipment
Transportation
0.00
carriers
(3) Fixed assets leased by financing lease
□ Applicable □ Not applicable
(4) Fixed assets rented out by operating lease
□ Applicable □ Not applicable
132
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
(5) Fixed assets held to be sold at the end of the current period
Unit: Yuan
Estimated disposal Estimated disposal
Item Net book value Fair value
cost time
(6) Fixed assets not gaining the property right certificate
Reason for not gaining the property Anticipated time to gain the property
Item
right certificate right certificate
Houses and buildings 2856809.16 Incomplete formalities
Notes on fixed assets:
18. Construction in progress
(1)
Unit: Yuan
Period-end amount Period-beginning amount
Item
Impairment Net book Impairment
Book balance Book balance Net book value
provision value provision
Office Information System
42,750.00 42,750.00
Engineering
Total 0.00 0.00 0.00 42,750.00 0.00 42,750.00
133
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
(2) Changes in major construction in progress
Unit: Yuan
Including:
accumulated Interest
Accumulated
Increase in Proportion of amount of capitalization
Period-begin Changed to Other amount of Source of Period-end
Project name Budget the current cost in the Progress interest rate in the
ning amount fixed assets decreases interest capital amount
period budget (%) capitalization current
capitalization
in the current period (%)
period
Total 0.00 0.00 0.00 0.00 0.00 -- -- 0.00 0.00 -- -- 0.00
Notes on the changes in projects of major construction in progress:
134
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
(3) Impairment provision for construction in progress
Unit: Yuan
Increase in the Decrease in the
Period-beginning Accrual reason
Item current period current period Period-end amount
amount
Total 0.00 0.00 0.00 0.00 --
(4) Progress of major construction in progress
Item Progress Remarks
(5) Notes on construction in progress
19. Engineering materials
Unit: Yuan
Period-beginning Increase in the Decrease in the
Item Period-end amount
amount current period current period
Total 0.00 0.00 0.00 0.00
Notes on engineering materials:
20. Disposal of fixed assets
Unit: Yuan
Period-beginning book
Item Ending book value Reason for disposal
value
Total 0.00 0.00 --
Notes on the progress of fixed assets disposal with duration of over one year:
135
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
21. Productive biological assets
(1) Calculated by costs
□ Applicable √ Not applicable
(2) Calculated by fair value
□ Applicable √ Not applicable
22. Oil & gas assets
Unit: Yuan
Period-beginning Increase in the current Decrease in the current Period-end book
Item
book balance period period balance
I. Total original book
value
1. Proved mining equity
2. Unproved mining
equity
3. Shafts and relevant
facilities
II. Total accumulated
depreciation:
1. Proved mining equity
2. Shafts and relevant
facilities
III. Accumulated
impairment provision for
oil and gas assets
1. Proved mining equity
2. Unproved mining
equity
3. Shafts and relevant
facilities
IV. Total book value of oil
0.00 0.00
and gas assets
1. Proved mining equity
2. Unproved mining
equity
3. Shafts and relevant
facilities
Notes on oil and gas assets:
136
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
23. Intangible assets
(1) Information on intangible assets
Unit: Yuan
Period-beginning Increase in the current Decrease in the current Period-end book
Item
book balance period period balance
I. Total original book
2,126,735.24 45,749.00 0.00 2,172,484.24
value
(1) UFIDA Software 616,476.00 616,476.00
(2) KOA Software 1,280,500.00 42,750.00 1,323,250.00
(3) Money collection
70,000.00 2,999.00 72,999.00
software
(4) Land use right 159,759.24 159,759.24
II. Accumulated
1,565,293.37 101,388.59 0.00 1,666,681.96
amortization
(1) UFIDA Software 491,228.89 10,628.88 501,857.77
(2) KOA Software 962,255.80 77,194.98 1,039,450.78
(3) Money collection
65,333.17 12,051.53 77,384.70
software
(4) Land use right 46,475.51 1,513.20 47,988.71
III. Book value of
561,441.87 -55,639.59 0.00 505,802.28
intangible assets
(1) UFIDA Software 125,247.11 -10,628.88 0.00 114,618.23
(2) KOA Software 318,244.20 -34,444.98 0.00 283,799.22
(3) Money collection
4,666.83 -9,052.53 0.00 -4,385.70
software
(4) Land use right 113,283.73 -1,513.20 0.00 111,770.53
IV. Total impairment
0.00 0.00 0.00 0.00
provision
(1) UFIDA Software
(2) KOA Software
(3) Money collection
software
(4) Land use right
137
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Period-beginning Increase in the current Decrease in the current Period-end book
Item
book balance period period balance
V. Total book value of
561,441.87 -55,639.59 0.00 505,802.28
intangible assets
(1) UFIDA Software 125,247.11 -10,628.88 0.00 114,618.23
(2) KOA Software 318,244.20 -34,444.98 0.00 283,799.22
(3) Money collection
4,666.83 -9,052.53 0.00 -4,385.70
software
(4) Land use right 113,283.73 -1,513.20 0.00 111,770.53
The amortization of the current period is RMB 101,388.59.
(2) Development project expenditure of the Company
Unit: Yuan
Decrease in the current period
Period-beginning Increase in the
Item Recorded into Period-end amount
amount current period Determined as
losses and gains of
intangible assets
the current period
Total 0.00 0.00 0.00 0.00 0.00
The proportion of the development expenditure in the total amount of R&D project expenditure of the current period
The proportion of intangible assets generated in the internal research and development of the Company in the period-end
book value of intangible assets
Notes on the Company's development projects, including the projects with individual value of over RMB 1 million and
recorded on the basis of the assessed value, for which the name of evaluation organizations and the evaluation methods
should be disclosed:
(3) Intangible assets not gaining the property right certificate
138
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
24. Goodwill
Unit: Yuan
Name of the invested unit or Period-end
Period-beginning Increase in the Decrease in the Period-end
the item contributing to a impairment
balance current period current period balance
goodwill provision
Changsha SEG Development
10,328,927.82 10,328,927.82
Co., Ltd.
Total 10,328,927.82 0.00 0.00 10,328,927.82 0.00
Impairment test methods of goodwill and accrual methods of impairment provision:
The Company purchased 46% of the equity of Changsha SEG Development Co., Ltd. at the price of RMB 69,000,000 in
March 2009. The book value of net assets of Changsha SEG Development Co., Ltd. was RMB 57,508,384.14 then. After
evaluation of the value added, the fair value of net assets of Changsha SEG Development Co., Ltd. was RMB
127,545,809.08. Thus, a goodwill amounting to 10,328,927.82 was formed.Long-term expenses to be
apportioned
Unit: RMB Yuan
Increase during Amortization of
Period-beginnin Other Period-end Reason for
Item the current the current
g amount decreases amount other decreases
period period
Renovation cost 38,736,168.31 1,991,191.57 3,577,445.60 37,149,914.28
Firefighting
system 618,947.67 108,208.14 510,739.53
renovation
Land price for
Block B and
470,759.19 564,911.02 -94,151.83
market
supporting fee
Others 1,575,162.60 761,380.17 813,782.43
Total 39,825,875.17 3,566,354.17 5,011,944.93 0.00 38,380,284.41 --
Notes on Long-term expenses to be apportioned:
25. Deferred income tax assets and liabilities
(1) The deferred income tax assets and liabilities are not listed as the net amount after offset.
√ Applicable □ Not applicable
Deferred income tax assets and liabilities that have been confirmed
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Deferred income tax assets
139
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Asset impairment provision
Organization costs
Deductible loss
Bad debt provision 8,850,374.98 8,850,374.98
Inventory impairment provision
Impairment provision for long-term equity investment 919,804.30 919,804.30
Impairment provision for fixed assets
Impairment provision for investment
properties
Impairment provision for intangible assets
Difference in amortization of rent cost
Temporary difference caused by prepaid rent
received
Subtotal 9,770,179.28 9,770,179.28
Deferred income tax liabilities
Valuation of trading and derivative financial
instruments
Changes in the fair value of financial assets
available for sale, which is accrued as capital 147,917.98 124,251.61
public reserve
Change in the fair value of houses and
buildings due to mergers (by evaluating the 19,741,799.15 20,296,262.09
increase in value)
Subtotal 19,889,717.13 20,420,513.70
Details of deferred income tax assets that are not confirmed.
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Deductible temporary difference
Deductible loss 38,392,074.34 38,392,074.34
Bad debt provision for accounts receivable 11,004,446.26 11,004,128.86
Impairment provision for loans and advances 685,111.06 35,700.00
140
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Item Period-end amount Period-beginning amount
Impairment provision for long-term equity investment 105,000.00 105,000
Total 50,186,613.66 49,536,903.20
The deductible loss of the deferred income tax assets that are not confirmed will be due in the following years, as shown in
the table below.
Unit: RMB Yuan
Year Period-end amount Period-beginning amount Remarks
Total --
Details of taxable difference and deductible difference
Unit: RMB Yuan
Amount of temporary difference
Item
Period end Period beginning
Taxable difference
Subtotal
Deductible difference
Subtotal
(2) The deferred income tax assets and liabilities are listed as the net amount after offset.
□ Applicable □ Not applicable
Notes on deferred income tax assets and liabilities:
26. Details of asset impairment provision
Unit: RMB Yuan
Decrease in the current period
Period-beginning Increase in the Period-end
Item
book balance current period book balance
Write back Write off
Bad debt provision 46,405,628.78 317.40 46,405,946.18
141
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Inventory impairment
0.00 0.00 0.00 0.00 0.00
provision
Impairment provision for
financial assets available
for sale
Impairment provision for
held-to-maturity
investments
Impairment provision for
3,784,217.22 0.00 3,784,217.22
long-term equity investment
Impairment provision for
0.00 0.00 0.00
investment properties
Impairment provision for
0.00 0.00
fixed assets
Impairment provision for
project materials
Impairment provision for
0.00 0.00 0.00
construction in progress
Impairment provision for
productive biological assets
Including: Impairment
provision for mature
productive biological assets
Impairment provision for oil
and gas assets
Impairment provision for
0.00 0.00 0.00
intangible assets
Impairment provision for
0.00
goodwill
Others 35,700.00 649,411.06 685,111.06
Total 50,225,546.00 649,728.46 0.00 0.00 50,875,274.46
Statement of impairment of assets:
27. Other non-current assets
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
142
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Total 0.00 0.00
Notes on other non-current assets:
28. Short-term loans
(1) Types of short-term loans
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Pledge loans
Mortgage loans
Guaranteed loans
Credit loans
Total 0.00 0.00
Notes on the types of short-term loans:
(2) Information on unpaid overdue short-term loans
Unit: RMB Yuan
Reason for overdue Expected repayment
Lending unit Amount Interest rate Uses of loans
repayment day
Total 0.00 -- -- -- --
Amount paid after the issuance of the balance sheet
Notes on short-term loans: for the unpaid overdue short-term loans that obtains rollover, the rollover conditions and new
expiration date must be specified.
29. Trading financial liabilities
Unit: RMB Yuan
Item Period-end fair value Period-beginning fair value
Trading bond issued
Financial liabilities measured by fair value
and with changes included in the current
gains or loss
143
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Derivative financial liabilities
Other financial liabilities
Total 0.00 0.00
Notes on trading financial liabilities:
30. Notes payable
Unit: RMB Yuan
Type Period-end amount Period-beginning amount
Commercial acceptance bill
Bank acceptance bill
Total 0.00 0.00
The amount (unit: yuan) that will be due in the next accounting period
Notes on notes payable:
31. Accounts payable
(1)
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Less than one year 5,904,406.77 12,053,220.26
1-2 years 4,500.40 987,886.48
2-3 years 45,038.73 6,423.50
Over 3 years 8,991.00
Total 5,962,936.90 13,047,530.24
(2) Accounts due to be paid to shareholder units that hold 5% or more voting shares in the accounts payable in
the report period
□ Applicable □ Not applicable
Notes on large amount accounts payable aged over one year:
144
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
32. Advances
(1)
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Less than one year 137,353,766.23 149,612,101.25
1-2 years 9,140,343.05 8,559,541.23
2-3 years 5,000.00
Over 3 years
Total 146,499,109.28 158,171,642.48
(2) Advances due to be collected from shareholder units that hold 5% or more voting shares in the advances in
the report period
□ Applicable □ Not applicable
Notes on large amount advances aged over one year:
33. Wages payable
Unit: RMB Yuan
Period-beginning book Increase in the current Decrease in the current Period-end book
Item
balance period period balance
Wages, bonuses,
allowances and 8,869,993.65 6,978,958.57 11,836,178.69 4,012,773.53
subsidies
Benefits of
567,342.40 246,951.40 320,391.00
employees
Social insurance
5,488.77 281,904.36 281,904.36 5,488.77
premiums
Housing fund 152,020.69 148,950.06 157,756.56 143,214.19
Dismissal benefits 78,430.00 78,430.00 0.00
Others 996,027.05 220,054.30 530,032.08 686,049.27
Labor union and
employee
294,642.49 232,357.17 84,180.36 442,819.30
education
expenditures
Total 10,318,172.65 8,507,996.86 13,215,433.45 5,610,736.06
145
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Period-beginning book Increase in the current Decrease in the current Period-end book
Item
balance period period balance
Arrears in the wages payable to employees
Compensation about labor union and employee education expenditures and non-monetary benefits should be paid upon
the termination of employment relation.
Notes on the expected paying time and amount of wages payable to employees:
34. Taxes payable
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Value-added tax 6,284,372.38 7,340,479.28
Consumption tax
Operating tax -1,333,618.85 -2,886,340.40
Enterprise income tax 12,001,673.00 27,823,972.59
Individual income tax 981,618.90 2,429,952.30
Urban maintenance and construction tax 904.91 481,599.10
Education surtax -60,483.46 324,092.01
Stamp tax and water fund 80,726.70 65,538.81
Others 704,862.27 194,236.21
Housing property tax 709,863.92 1,157,243.50
Total 19,369,919.77 36,930,773.40
Notes on taxes payable: if the local tax authorities agree that the branches and plants dispense their payable taxes with
each other, the calculation process of their payable taxes must be provided.
35. Interest payable
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Interest for long-term loans of which the interests
are paid by installments and the principal paid on
maturity
Enterprise bond interest
146
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Interest payable for short-term loans
Total 0.00 0.00
Notes on interest payable:
36. Dividends payable
Unit: RMB Yuan
Reason for not paying dividends
Name of company Period-end amount Period-beginning amount
for over one year
China Electronic Appliance
510,840.00 392,040.00
(Shenzhen) Co., Ltd.
Shenzhen SEG Computers Co.,
365,310.00 305,910.00
Ltd.
Nanjing Shangsha Co., Ltd. 344,520.00 285,120.00
Shenzhen SEG Group Service
285,120.00 225,720.00
Co., Ltd.
Individual shares 644,496.03 137,702.14
Others 70,223.27 70,223.27
A shares 3,881.48 3,881.48
B shares 45,698.54 45,698.54
Total 2,270,089.32 1,466,295.43 --
Notes on dividends payable:
37. Other accounts payable
(1)
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Less than one year 101,752,089.48 26,128,567.54
1-2 years 9,865,370.26 52,467,224.37
2-3 years 9,088,734.04 14,279,396.58
Over 3 years 6,900,989.06 17,993,974.40
147
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Total 127,607,182.84 110,869,162.89
(2) Accounts due to be paid to shareholder units that hold 5% or more voting shares in other accounts payable in
the report period
□ Applicable □ Not applicable
(3) Notes on other large amount accounts payable aged over one year
(4) Information on other large amount accounts payable
38. Anticipation liabilities
Unit: RMB Yuan
Period-beginning Increase in the current Decrease in the
Item Period-end amount
amount period current period
External guarantee
Unsettled lawsuits
Product quality
guarantee
Restructuring
obligations
Dismissal benefits
Loss contract to be
executed
Others
Total 0.00 0.00 0.00 0.00
Notes on anticipation liabilities:
39. Non-current liabilities due within one year
(1)
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Long-term loans due within one year
Payable bonds due within one year
Long-term accounts payable due within one
148
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
year
Total 0.00 0.00
(2) Long-term loans due within one year
Long-term loans due within one year
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Pledge loans
Mortgage loans
Guaranteed loans
Credit loans
Total
The amount (unit: yuan) of overdue loans obtaining rollover in the long-term loans due within one year:
Top five long-term loans due within one year
Unit: RMB Yuan
Period-end amount Period-beginning amount
Loans
Loans Interest rate
Lending unit terminating Currency Amount in Amount in Amount in Amount in
starting date (%)
date foreign local foreign local
currency currency currency currency
Total -- -- -- -- -- 0.00 -- 0.00
Overdue loans in the long-term loans due within one year:
Unit: RMB Yuan
Reason for
Annual interest Expected
Lending unit Amount Expiration date Uses of loans overdue
rate (%) repayment day
repayment
Total 0.00 -- -- -- -- --
Amount paid after the issuance of the balance sheet (unit: yuan).
Notes on long-term loans due within one year:
149
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
(3) Payable bonds due within one year
Unit: RMB Yuan
Period-beg Accrued Paid
Period-end
Bond Issuing Bond Issued inning interest of interest of Period-end
Face value payable
name date period amount payable the current the current balance
interest
interest period period
Notes on payable bonds due within one year:
(4) Long-term accounts payable due within one year
Unit: RMB Yuan
Period-end Conditions of a
Lending unit Period Initial amount Interest rate (%) Accrued interest
balance loan
Notes on long-term accounts payable due within one year:
40. Other current liabilities
Unit: RMB Yuan
Item Period-end book balance Period-beginning book balance
Government subsidies with particular purpose 260,000.00 0.00
Total 260,000.00 0.00
Notes on other current liabilities:
41. Long-term loans
(1) Types of long-term loans
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Pledge loans
Mortgage loans
Guaranteed loans
Credit loans
150
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Total 0.00 0.00
Notes on the types of long-term loans:
(2) Top five long-term loans
Unit: RMB Yuan
Period-end amount Period-beginning amount
Loans
Loans Interest rate
Lending unit terminating Currency Amount in Amount in Amount in Amount in
starting date (%)
date foreign local foreign local
currency currency currency currency
Total -- -- -- -- -- 0.00 -- 0.00
Notes on long-term loans: for long-term loans that come from overdue loans obtaining rollover, the conditions of rollover,
principal, interest and expected repayment arrangement must be specified.
42. Bonds payable
Unit: RMB Yuan
Period-beg Accrued Paid
Period-end
Bond Issuing Bond Issued inning interest of interest of Period-end
Face value payable
name date period amount payable the current the current balance
interest
interest period period
Notes on bonds payable: the transfer conditions and time of the convertible bonds of the Company must be specified.
43. Long-term accounts payable
(1) Information on top five long-term accounts payable
Unit: RMB Yuan
Period-end Conditions of a
Unit Period Initial amount Interest rate (%) Accrued interest
balance loan
(2) Details of the financial lease outlay payable in the long-term accounts payable
Unit: RMB Yuan
Unit Period-end amount Period-beginning amount
151
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Foreign currency RMB Foreign currency RMB
Total
The amount guaranteed by an independent third party for the financial lease of the Company (unit: yuan):
Notes on long-term accounts payable:
44. Special payables
Unit: RMB Yuan
Decrease in
Period-beginning Increase in the Period-end
Item the current Remarks
amount current period amount
period
Total 0.00 0.00 --
Notes on special payables:
45. Other non-current liabilities
Unit: RMB Yuan
Item Period-end book balance Period-beginning book balance
Total 0.00 0.00
Notes on other non-current liabilities, including government subsidies related to the assets and benefits during the report
period and the period-end amount.
46. Share capital
Unit: RMB Yuan
Increase/decrease by (±)
Period-beginn Period-end
Capitalization
ing amount New share amount
Bonus share of public Others Subtotal
offering
reserve
Sum of 784,799,010. 784,799,010.
0.00
shares 00 00
Notes on the share capital changes: if there is any capital increase or capital decrease during the report period, the name
of the accounting firm that executes the capital verification and the number of capital verification report should be
disclosed. Limited corporations with less than 3 years of operation need only to provide the information about net assets
152
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
for the years before incorporation. If a limited liability company changes to a joint stock company, the company must
provide the capital verification information at the time of incorporation.
47. Treasury shares
Notes on treasury shares
48. Special reserve
Notes on special reserve
49. Capital public reserve
Unit: RMB Yuan
Period-beginning Increase in the current Decrease in the
Item Period-end amount
amount period current period
Capital premium (capital
325,329,854.26 325,329,854.26
share premium)
Other capital public reserve 81,660,598.71 47,271.21 0 81,707,869.92
Total 406,990,452.97 47,271.21 0 407,037,724.18
Notes on capital public reserve:
50. Surplus public reserve
Unit: RMB Yuan
Period-beginning Increase in the current Decrease in the
Item Period-end amount
amount period current period
Statutory surplus reserve 102,912,835.67 102,912,835.67
Free surplus reserve
Reserve fund
Enterprise development fund
Others
Total 102,912,835.67 0.00 0.00 102,912,835.67
Notes on surplus public reserve: if the Company uses the surplus public reserve to increase the share capital,
cover the deficit, or distribute dividends, related resolutions must be provided.
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
51. General risk provision
Information on general risk provision:
52. Retained profits
Unit: RMB Yuan
Item Amount Accrual/Distribution Rate
Retained profits of the end of the previous
-142,006,368.05 --
year before adjustment
Total year-beginning retained profits (+ for
--
increase, - for decrease) after adjustment
Year-beginning retained profit after
-142006368.05 --
adjustment
Plus: Net profits attributable to owners of
31,621,212.01 --
the parent company in the current period
Less: Accrual of statutory surplus reserve
Accrual of free surplus reserve
Accrual of general risk provision
Ordinary share dividends payable
Ordinary share dividends converted to
share capital
Retained Profit at the end of the period -110,385,156.04 --
Details of the year-beginning retained profits after adjustment:
1. The year-beginning retained profits are influenced by the retroactive adjustment of Accounting Standard for Business
Enterprises and its related new regulations (unit: yuan):
2. The year-beginning retained profits are influenced by the changes of accounting policies (unit: yuan):
3. The year-beginning retained profits are influenced by the correction of material accounting errors (unit: yuan):
4. The year-beginning retained profits are influenced by the changes of consolidation area under the control of a same
entity (unit: yuan):
5. The year-beginning retained profits are influenced by other adjustments in total (unit: yuan):
Notes on retained profits: for companies with the initial public offerings, if it is determined by the resolution of general
meeting of shareholders that the accumulated profits before IPO will be shared by new and old shareholders, the
company must give specific explanation. If the accumulated profits before IPO will be enjoyed by the old shareholders, the
company must disclose the audited amount of profits to be enjoyed by the old shareholders in the dividends payable.
154
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
53. Operating income and operating cost
(1) Operating income and cost
Unit: RMB Yuan
Amount incurred in the previous report
Item Amount incurred in the report period
period
Main operating income 241,988,628.19 189,952,023.78
Other business income 13,453,197.71
Operating cost 175,042,563.79 139,750,385.92
(2) Main operating businesses (by industry)
√ Applicable □ Not applicable
Unit: RMB Yuan
Amount incurred in the previous report
Amount incurred in the report period
period
Name of company
Operating income Operating cost Operating income Operating cost
Electronic market and property
158,889,463.01 98,955,816.93 114,234,723.15 67,755,024.25
operation
Storage and transportation 33,871,997.01 28,060,720.22
Trade 66,987,818.16 65,959,086.25 37,196,194.67 36,711,465.42
Hotel 8,425,425.54 6,665,455.52 4,625,408.95 3,874,273.06
E-commerce 2,475,490.66 2,839,487.13 23,700.00 3,276,036.78
Financial industry 5,210,430.82 622,717.96
Total 241,988,628.19 175,042,563.79 189,952,023.78 139,677,519.73
(3) Main operating businesses (by product)
□ Applicable □ Not applicable
(4) Main operating businesses (by region)
√ Applicable □ Not applicable
Unit: RMB Yuan
Amount incurred in the previous report
Amount incurred in the report period
period
Name of district
Operating income Operating cost Operating income Operating cost
155
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Shenzhen 174,649,987.00 118,802,619.84 137,062,863.46 91,184,974.30
Xi’an 22,094,387.39 16,626,615.86 12,221,935.55 10,499,340.73
Su Zhou 18,136,242.91 14,423,396.20 16,949,208.82 14,072,223.94
Changsha 12,556,330.05 11,272,593.59 10,904,646.27 8,856,665.68
Nanjing 14,551,680.84 13,917,338.30 0.00 2,165,406.61
Overseas 12,813,369.68 12,898,908.47
Total 241,988,628.19 175,042,563.79 189,952,023.78 139,677,519.73
(5) Operating income from top five customers of the Company
Unit: RMB Yuan
Proportion in the total operating income of the
Name of customer Main operating income
Company (%)
Shenzhen Runneng Digital Co.,
33,239,564.27 13.74%
Ltd.
Shenzhen Shuojie Industrial
15,733,834.00 6.50%
Co., Ltd.
Samsung (China) Investment
10,221,928.79 4.22%
Co., Ltd.
Shenzhen Xinfeipu Network
5,667,600.52 2.34%
Co., Ltd.
Beijing Hanlinhui Information
3,874,139.34 1.60%
Industry Co., Ltd.
Total 68,737,066.92 28.41%
Notes on operating income:
54. Contract project income
□ Applicable □ Not applicable
Notes on contract projects:
55. Operating tax and surcharges
Unit: RMB Yuan
Amount incurred in the Amount incurred in the
Item Taxation standards
report period previous report period
156
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Consumption tax
Operating tax 8,796,693.62 7,475,756.19
Urban maintenance and
587,356.21 339,988.63
construction tax
Education surtax 320,436.01 218,717.68
Resources tax
Others 89,532.36 38,359.51
Total 9,794,018.20 8,072,822.01 --
Notes on operating tax and surcharges:
56. Income from change in fair value
Unit: RMB Yuan
Amount incurred in the report Amount incurred in the previous
Sources of income from change in fair value
period report period
Trading financial assets
Including: income of change of fair value
generated by derivative financial instruments
Trading financial liabilities
Investment properties measured by fair value
Others
Total 0.00 0.00
Notes on income from change in fair value:
57. Investment income
(1) Details of investment income
Unit: RMB Yuan
Amount incurred in the report Amount incurred in the previous
Item
period report period
Long-term equity investment income by the cost
method
Long-term equity investment income by the
117,154.53 -4,552,269.39
equity method
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount incurred in the report Amount incurred in the previous
Item
period report period
Income from disposal of long-term equity
investments
Income during the time of holding trading
financial assets
Income from held-to-maturity investments
Income during the time of holding financial
assets available for sale
Income from disposal of trading financial assets
Income from held-to-maturity investments
Income from financial assets available for sale
Others 7,736,995.67
Total 7,854,150.20 -4,552,269.39
(2) Long-term equity investment income calculated by the cost method
Unit: RMB Yuan
Amount incurred in
Amount incurred in the Reason for increase or decrease
Invested organization the previous report
report period from the previous period
period
Total --
(3) Income from long-term equity investment calculated by the equity method
Unit: RMB Yuan
Amount incurred in
Amount incurred in the Reason for increase or decrease
Invested organization the previous report
report period from the previous period
period
The company disposes the assets
Shenzhen SEG Samsung Co., Ltd. -475,507.86 -5,669,357.38
income.
Shanghai SEG Electronic Market
592,662.39 1,117,087.99
Co., Ltd.
Total 117,154.53 -4,552,269.39 --
Notes on the investment income: if there is any major restriction on the repatriation of the investment income, the
restriction must be specified. If there is no such major restriction, it should be specified, too.
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
There is no major restriction on the repatriation of the investment income.
58. Loss from asset impairment
Unit: RMB Yuan
Amount incurred in the report Amount incurred in the previous
Item
period report period
1. Loss from bad debts 317.40 0.00
2. Loss from inventory impairment
3. Loss from impairment of financial assets available
for sale
4. Loss from impairment of held-to-maturity
investments
5. Loss from impairment of long-term equity
investment
6. Loss from impairment of investment properties
7. Loss from impairment of fixed assets
8. Loss from impairment of engineering materials
9. Loss from impairment of construction in progress
10. Loss from impairment of productive biological
assets
11. Loss from impairment of oil and gas assets
12. Loss from impairment of intangible assets
13. Loss from goodwill impairment
Others 649,411.06 0.00
Total 649,728.46 0.00
59. Non-operating income
(1)
Unit: RMB Yuan
Amount incurred in the report Amount incurred in the previous
Item
period report period
Total profit from disposal of non-current assets 100,000.00
159
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount incurred in the report Amount incurred in the previous
Item
period report period
Including: profit from disposal of fixed assets 39,993.35
Profit from disposal of intangible assets
Profit from debt restructuring
Profit from transfer of non-monetary assets
Income from donations
Government subsidies 340,000.00 0.00
Accounts not required to be paid 1,116,961.25
Income from lawsuits
Others 317,899.85 262,863.65
Total 1,774,861.10 362,863.65
(2) Details of government subsidiaries
Unit: RMB Yuan
Amount incurred in the Amount incurred in the
Item Remarks
report period previous report period
Special development funds for
biology, Internet and new energy 240,000.00
industries of Shenzhen
Supporting funds gained from
the Commerce Department of 100,000.00
Hunan Province
Total 340,000.00 0.00 --
Notes on non-operating income:
60. Non-operating expenses
Unit: RMB Yuan
Amount incurred in the report Amount incurred in the
Item
period previous report period
Total disposal loss of non-current assets 4,034.65 23683.12
Including: disposal loss of fixed assets 4,034.65 22,683.12
160
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount incurred in the report Amount incurred in the
Item
period previous report period
Disposal loss of intangible assets 0.00
Loss from debt restructuring
Loss from transfer of non-monetary assets
Donation expenses
Including: charitable donation expenses
Abnormal loss 16,100.00
Shops compensation loss 1,848.00
Others 23,205.11 16,177.74
Total 45,187.76 38,860.86
Notes on non-operating expenses:
61. Income tax
Unit: RMB Yuan
Amount incurred in the report Amount incurred in the
Item
period previous report period
Income tax of the current period calculated according to
12,039,472.47 12,050,328.17
tax laws and relevant regulations
Deferred income tax 530,796.57 417,698.65
Total 12,570,269.04 12,468,026.82
62. Calculation process for basic EPS and diluted EPS
Item Amount of the Amount of the previous year
current year
Net profit attributable to common shareholders of the Company 31,621,212.01 26,332,388.35
(P1)
Non-recurring gains and losses 856,137.80 188,334.57
Net profit (P2) attributable to common shareholders of the 30,765,074.21 26,144,053.78
Company after deduction of non-recurring losses and gains
161
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Item Amount of the Amount of the previous year
current year
Period-beginning shares in total (S0) 784,799,010.00 784,799,010.00
Shares increased because the capital public reserve is transferred
to share capital or share dividends are distributed (S1)
Shares increased because new shares are issued or liabilities are
transferred to shares (Si)
Shares decreased due to repurchases (Sj)
Shares merged (Sk)
Month No. of the report period (M0)
Months from the next month after shares are increased to the end
of the report period (Mi)
Months from the next month after shares are decreased to the end
of the report period (Mj)
Weighted average of common shares 784,799,010.00 784,799,010.00
(S1=S0+S1+Si×Mi÷M0-Sj×Mj÷M0-Sk)
Basic earnings per Net profit attributable to common 0.0403 0.0335
share shareholders of the Company (=P1÷S1)
Net profit attributable to common 0.0392 0.0333
shareholders of the Company after deduction
of the non-recurring losses and gains
(=P2÷S1)
Diluted earnings per Net profit attributable to common 0.0403 0.0335
share shareholders of the Company
(=[P1+(interest of diluted potential common
shares recognized as expense – conversion
costs) x (1 – income tax rate)] /
(S0+S1+Si×Mi÷M0 – Sk+ weighted average
of common shares such as certificated
shares, security options, and convertible
bonds)
Net profit attributable to common 0.0392 0.0333
shareholders of the Company after deduction
of the non-recurring losses and gains (=[P2 +
(interest of diluted potential common shares
recognized as expense – conversion costs) x
(1 - income tax rate)] / (S0+S1+Si×Mi÷M0 –
Sk+ weighted average of common shares
such as certificated shares, security options,
162
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Item Amount of the Amount of the previous year
current year
and convertible bonds)
63. Other comprehensive income
Unit: RMB Yuan
Amount incurred in the report Amount incurred in the
Item
period previous report period
1. Gains (losses) from financial assets available for sale 94,665.48 -64,323.98
Less: influence of income tax incurred from financial
23,666.37 -15,437.76
assets available for sale
Net gains and losses recorded into other consolidated
income in the previous period and transferred back in the
current period
Subtotal 70,999.11 -48,886.22
2. Enjoyed shares of other consolidated income of
invested units by the equity method
Less: influence on income tax by enjoyed shares of other
consolidated income of invested units by the equity
method
Net gains and losses recorded into other consolidated
income in the previous period and transferred back in the
current period
Subtotal 0.00 0.00
3. Profit (or loss) from hedging instruments of cash flows
Less: influence on income tax by hedging instruments of
cash flows
Net gains and losses recorded into other consolidated
income in the previous period and transferred back in the
current period
Adjustment of the initial confirmed amount transferred as
arbitraged items
Subtotal 0.00 0.00
4. Translation difference of the financial statements in
89,449.29
foreign currency
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2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount incurred in the report Amount incurred in the
Item
period previous report period
Less: net gains and losses transferred in from disposal
of overseas assets in the current period
Subtotal 89,449.29
5. Others
Less: influence on income tax by others recorded into
other consolidated income
Net amount of others recorded into other consolidated
income in the previous period and transferred back in the
current period
Subtotal 0.00 0.00
Total 70,999.11 40,563.07
Notes on other comprehensive income:
64. Notes on the cash flow statement
(1) Other cash received concerning operating activities
Unit: RMB Yuan
Item Amount
Money collected on behalf of others (shops payment) 166,057,148.96
Incomings and outgoings 90,759,416.75
Interest income 3,700,901.74
Non-operating income 828,198.84
Total 1,439,805,666.29
Notes on other cash received concerning operating activities:
(2) Other cash paid concerning operating activities
Unit: RMB Yuan
Item Amount
Money paid on behalf of others (shops payment) 162,275,752.05
Incomings and outgoings 52,339,167.73
164
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Cash expenses 14,447,061.40
Non-operating expenses 36,120.90
Notes on other cash paid concerning operating activities
(3) Other cash received concerning investment activities
Unit: RMB Yuan
Item Amount
Total 0.00
Notes on other cash received concerning investment activities:
(4) Other cash paid concerning investment activities
Unit: RMB Yuan
Item Amount
Total 0.00
Notes on other cash paid concerning investment activities:
(5) Other cash received concerning financing activities
Unit: RMB Yuan
Item Amount
Total 0.00
Notes on other cash received concerning financing activities:
(6) Other cash paid concerning financing activities
Unit: RMB Yuan
Item Amount
Total 0.00
Notes on other cash paid concerning financing activities:
165
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
65. Supplementary information to cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB Yuan
Supplementary materials Amount of the current period Amount of the previous period
1. Reconciliation of net profit to cash flows from
-- --
operating
Net profit 37,918,630.15 28,021,679.64
Plus: asset impairment provision 649,728.46 0.00
Depreciation of fixed assets, oil & gas assets and
11,819,265.81 14,729,463.00
productive biological assets
Amortization of intangible assets 101,388.59 94,779.80
Amortization of long-term expenses to be apportioned 5,011,944.93 3,563,794.10
Loss from disposal of fixed assets, intangible assets,
4,034.65 -45,316.88
and other long-term assets (profit is marked with "-")
Loss from scrapping of fixed asset (profit is marked
with "-")
Loss from change in fair value (profit is marked with
"-")
Financial expenses (profit is marked with "-") -5,185,253.01
Loss from investment (profit is marked with "-") -7854150.20 4,552,269.39
Decrease of deferred income tax assets (profit is
987,599.35
marked with "-")
Increase of deferred income tax liabilities (decrease is
-530,796.57 -569,900.70
marked with "-")
Decrease of inventories (increase is marked with "-") -1,610,794.33 3,274,836.79
Decrease of operating accounts receivable (increase
-71,282,957.41 -25,559,760.22
is marked with "-")
Increase of operating accounts payable (decrease is
-24,497,396.81 -6,609,233.68
marked with "-")
Others -4,680,596.16 585,722.03
Net cash flow arising from operating activities -50,775,759.58 23,025,932.62
2. Investing and financing activities not involving cash -- --
166
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Supplementary materials Amount of the current period Amount of the previous period
receipts and payments
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets acquired by financing lease
3. Net increase in cash and cash equivalents -- --
Cash at the end of the period 579,166,521.47
Less: cash at the beginning of the period 644,439,198.78 572,818,178.75
Plus: cash equivalents at the end of the period
Less: cash equivalents at beginning of the period
Net increase in cash and cash equivalents -65,272,677.31 22,324,721.52
(2) Related information about acquisition or disposal of subsidiaries and other operating units in the current
period
Unit: RMB Yuan
Amount incurred in the report Amount incurred in the previous
Supplementary materials
period report period
I. Related information about acquired subsidiaries and
-- --
other operating units
1. Price for acquisition of subsidiaries and other
operating units
2. Cash or cash equivalents paid for acquisition of
subsidiaries and other operating units
Less: cash or cash equivalents held by subsidiaries
and other operating units
3. Net cash paid for acquisition of subsidiaries and
0.00 0.00
other operating units
4. Net assets of the acquired subsidiaries 0.00 0.00
Current assets
Non-current assets
Current liabilities
Non-current liabilities
167
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount incurred in the report Amount incurred in the previous
Supplementary materials
period report period
II. Related information about disposed subsidiaries
-- --
and other operating units
1. Price for disposal of subsidiaries and other
operating units
2. Cash or cash equivalents obtained by disposal of
subsidiaries and other operating units
Less: cash or cash equivalents held by subsidiaries
and other operating units
3. Net cash received from disposal of subsidiaries and
0.00 0.00
other operating units
4. Net assets of the disposed subsidiaries 0.00 0.00
Current assets
Non-current assets
Current liabilities
Non-current liabilities
(3) Composition of cash and cash equivalents
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
I. Cash 579,166,521.47 644,439,198.78
Including: cash on hand 375,938.98 355,217.98
Bank deposits available for payment at any time 578,790,582.49 644,074,821.13
Other monetary capital available for payment at any
9,159.67
time
Accounts in the central bank available for payment
Accounts deposited in the enterprises of the same
industry
Accounts borrowed from the enterprises of the same
industry
II. Cash equivalents
Including: bond investments due within 3 months
III. Period-end balance of cash and cash equivalents 579,166,521.47 644,439,198.78
Notes on supplementary information to the cash flow statement:
168
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
66. Notes on statement on changes of owners' equity
Notes on the names, adjustment amount, retroactive adjustment caused by mergence of enterprises under the control of
a same entity of the adjustment of "Other" projects on ending balance of the previous year:
(VIII) Accounting Treatment of Assets Securitization
1. Information on the main transaction arrangement, related accounting treatment and
bankruptcy isolation terms of the assets securitization business.
2. Information on SPE that the Company bear their risks but does not control over
Unit: RMB Yuan
Operating
Total assets at Total liabilities at Period-end net Net profits of the
Name income of the Remarks
the period end the period end assets current period
current period
169
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
(IX) Related Parties and Relevant Transactions
1. Information on the Company’s parent company
Unit: RMB Yuan
Share-holding Voting right
Name of Final control
Place of Legal Nature of Registered proportion of proportion of Organization
parent Relations Type of company Currency party of the
registration representative business capital the parent the parent code
company Company
company (%) company (%)
Shenzhen
Controlling Limited liability
SEG Group Shenzhen Sun Shengdian State-owned 1,355,420,000.00 RMB 30.24% 30.24% 19218093-0
shareholder company
Co., Ltd.
Notes on the situations of the parent company:
2. Information on subsidiaries of the Company
Unit: RMB Yuan
Full name of Type of Place of Legal Nature of Registered Share-holding Voting right Organization
Type of company Currency
subsidiary subsidiary registration representative business capital proportion (%) proportion (%) code
Xi’an SEG
Limited liability Service
Electronic Market Subsidiary Xi’an Li Lifu 300.00 RMB 65% 65% 74283072-4
company industry
Co., Ltd.
Shenzhen SEG
Electronics Market Limited liability Service
Subsidiary Shenzhen Liu Zhijun 300.00 RMB 70% 70% 77413117-8
Management Co., company industry
Ltd.
170
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Full name of Type of Place of Legal Nature of Registered Share-holding Voting right Organization
Type of company Currency
subsidiary subsidiary registration representative business capital proportion (%) proportion (%) code
Suzhou SEG
Limited liability Service
Electronic Market Subsidiary Su Zhou Zheng Dan 300.00 RMB 45% 45% 78205845-X
company industry
Co., Ltd.
Shenzhen SEG
Baohua Enterprise Company limited by Service
Subsidiary Shenzhen Li Lifu 3,080.88 RMB 66.58% 66.58% 19219334-4
Development Co., shares industry
Ltd.
Shenzhen SEG
Industrial Limited liability Service
Subsidiary Shenzhen Li Lifu 2,550.00 RMB 91.79% 91.79% 19219150-9
Investment Co., company industry
Ltd.
Changsha SEG
Limited liability Service
Development Co., Subsidiary Changsha Zhu Longqing 3,500.00 RMB 46% 51% 616600581
company industry
Ltd.
Shenzhen Mellow
Orange Business
Indirect Limited liability Service
Hotel Shenzhen Bo Hongxi 1,000.00 RMB 66.58% 66.58% 69556368-5
subsidiary company industry
Management Co.,
Ltd.
Shenzhen SEG Limited liability Financial
Subsidiary Shenzhen Wang Li 15,000.00 RMB 51.7064% 51.7064% 58792690-1
Credit Co., Ltd. company industry
Shenzhen SEG
Limited liability
E-Commerce Co., Subsidiary Shenzhen Liu Zhijun E-commerce 4,800.00 RMB 51% 51% 56854637-2
company
Ltd.
Shenzhen SEG
Electronics Market Limited liability Service
Subsidiary Nanjing Zhu Longqing 2,000.00 RMB 100% 100% 57158102-1
Management Co., company industry
Ltd.
Xi’an Hairong SEG
Limited liability Service
Electronic Market Subsidiary Xi’an Li Lifu 300.00 RMB 51% 51% 57843107-7
company industry
Co., Ltd.
171
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
3. Information on the joint ventures and joint operation enterprises of the Company
Unit: RMB Yuan
Voting Total
Name of the proportion Total liabilities Total net operating Net profits of
Type of Place of Legal Nature of Registered Shareholding Total assets at Organization
invested Currency in the at the period assets at the income of the the current Relations
company registration representative business capital proportion the period end code
company invested end period end current period
company period
I. Joint
-- -- -- -- -- -- -- -- -- -- -- -- -- -- --
ventures
II. Joint
operation -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
enterprises
Shenzhen
Joint Joint
SEG 334,763,056.7 110,035,335.8 224,727,720.9 -2,117,630.2
stock Shenzhen Hu Jianping Manufacturing 896,671,500.00 RMB 22.45% 22.45% 0 operation 27934648-9
Samsung 5 3 2 5
company enterprise
Co., Ltd.
Shanghai
SEG Limited Joint
Service 19,142,652.3 1,693,321.1
Electronic liability Shanghai 5,000,000.00 RMB 35% 35% 51,485,476.64 34,702,914.70 1,678,2561.94 operation
industry 5 2
Market Co., company enterprise
Ltd.
Shenzhen
SEG Orient Limited Joint
Service
Industrial liability Shenzhen 2,000,000.00 RMB 20% 20% 186,386.42 673,744.5 -487,358.08 0 0 operation
industry
Development company enterprise
Co., Ltd.
172
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
4. Information on other related parties
Name of the related party Relationship with the Company Organization code
Shenzhen SEG Property Development Co., Ltd. Subsidiary of the first majority shareholder 19227219x
Shenzhen SEG Group Service Co., Ltd. Subsidiary of the first majority shareholder
Shenzhen SEG Computers Co., Ltd. Subsidiary of the first majority shareholder
Shenzhen SEG Hi-tech Industrial Co., Ltd. Subsidiary of the first majority shareholder
Notes on other related parties:
5. Transactions with related parties
(1) Information on purchasing products and accepting services
Unit: RMB Yuan
Amount incurred in the previous
Amount incurred in the report period
report period
Pricing method
and
Transaction Proportion in
Related party decision-making Proportion in the
contents the total amount
process of the total amount of
Amount of similar Amount
transactions similar
transactions
transactions (%)
(%)
Information on selling products and providing services
Unit: RMB Yuan
Amount incurred in the previous
Amount incurred in the report period
report period
Pricing method
and
Transaction Proportion in
Related party decision-making Proportion in the
contents the total amount
process of the total amount of
Amount of similar Amount
transactions similar
transactions
transactions (%)
(%)
173
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
(2) Information on transaction trusteeship/contract
Statement on trusteeship/contract of the Company
Unit: RMB Yuan
Trusteeship
Influence
Name of Pricing /contract
Name of Information Amount of of
the Types of Starting Terminating basis of income
the on the the trusteeship
entrusting entrusted/ date of date of trusteeship recognized
entrusted entrusted/ entrusted/ /contract
party/ contracted trusteeship/ trusteeship/ income/ in the
party/ contract contracte income on
contract assets contract contract contract current
contractor assets d assets the
issuer income report
Company
period
Information on entrusted management/contract issued by the Company
Unit: RMB Yuan
Trustee fee
Name of /contract Influence of
Name of Information Amount of Starting Terminating Pricing
the Types of fee entrusting
the on the date of date of basis of
entrusting entrusted/ recognized /contract
entrusted entrusted/ entrusted/ entrusting/ entrusting/ trustee fee
party/ contracted in the income on
party/ contracted contracted contract contract /contract
contract assets current the
contractor assets assets issuing issuing fee
issuer report Company
period
Huaqiang
North SEG Trustee fee
Shenzhen
Shenzhen Communic Fixed Based on of RMB 0.1
SEG 87,277,706
SEG Co., ations assets— 2011.1.31 2015.1.31 market million + Little
Group Co., Market .38
Ltd. real estate price excess
Ltd.
In commission
operation
Notes on transaction trusteeship/contract:
(3) Information on leases between the Company and related parties
Information on lease-out
Unit: RMB Yuan
Lease
income Influence
Pricing
Types of Information Amount of Lease Lease recognized by lease
Name of Name of basis of
leased on leased leased beginning ending in the income on
leaser lessee lease
assets assets assets date date current the
income
report Company
period
174
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Information on lease taking
Unit: RMB Yuan
Lease fee
Influence
recognized
Types of Information Amount of Lease Lease Pricing by lease
Name of Name of in the
leased on leased leased beginning ending basis of income on
leaser lessee current
assets assets assets date date lease fee the
report
Company
period
The
warehouse
with its
area of
809.26
Shenzhen
Shenzhen square Based on RMB
SEG In normal 5,268,387.
SEG Co., meters on 2011.4.1 2013.3.31 market 0.258 Little
Group Co., the 8 floor operation
th 28
Ltd. price million
Ltd. of SEG
Plaza
Fixed
assets—re
al estate
Notes on leases between the Company and related parties
(4) Lease guarantee
Unit: RMB Yuan
Whether the
Amount of Starting date of Terminating date of guarantee
Sponsor Guaranteed party
guarantee guarantee guarantee responsibility is
fulfilled
Notes on lease guarantee:
(5) Assets borrowing and lending
Unit: RMB Yuan
Related party Amount Starting date Terminating date Remarks
Borrowing
Lending
175
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
(6) Information on assets transfer and liabilities restructuring of related parties
Unit: RMB Yuan
Amount incurred in the report Amount incurred in the
period previous report period
Pricing method
and Proportion in Proportion in
Type of Transaction
Related party decision-making the total the total
transactions contents
process of the amount of amount of
Amount Amount
transactions similar similar
transactions transactions
(%) (%)
(7) (Other relevant transactions
6. Accounts receivable from accounts payable to related parties
Accounts receivable from related parties
Unit: RMB Yuan
Project name Related party Period-end amount Period-beginning amount
Shenzhen SEG Property
Other receivables 2,000.00 2,000.00
Development Co., Ltd.
Shenzhen SEG Orient Industrial
Other receivables 443,910.00 443,910.00
Development Co., Ltd.
Other receivables Shenzhen SEG Group Co., Ltd. 86,000.00 86,000.00
Accounts payable to related parties
Unit: RMB Yuan
Project name Related party Period-end amount Period-beginning amount
Shenzhen SEG Group
Dividends payable 285,120.00 225,720.00
Service Co., Ltd.
Shenzhen SEG Computers
Dividends payable 365,310.00 305,910.00
Co., Ltd.
(X) Share Payment
1. General information on share payment
Total amount of equity instruments granted
in the current period by the Company
176
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Total amount of equity instruments
exercised in the current period by the
Company
Total amount of equity instruments expired
in the current period by the Company
Ranges of the period-end option exercise
price of outstanding shares of the Company
and remaining term of the contract by the
end of this period
Ranges of the period-end option exercise
price of other equity instruments of the
Company and remaining term of the
contract by the end of this period
Notes on share payment:
2. Share payment settled by equity
Unit: RMB Yuan
Determining method of the fair value of the equity instruments on
the grant date
Determining method of the best estimation of the number of
exercisable equity instruments
Reason for material difference between the estimation of the
current period and that of the previous period
Accumulated amount of share payment settled with equity in
capital public reserve
Total amount of recognized share payment settled by equity
Notes on share payment settled by equity:
3. Share payment settled by cash
Unit: RMB Yuan
Determining method of the fair value of the liabilities borne by the
Company, calculated and determined on the basis of the share or
other equity instruments
Accumulated amount of liabilities generated by the share
payments settled by cash
Total amount of recognized share payment settled by cash
Notes on share payment settled by cash:
177
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
4. Share payment in exchange for services
Unit: RMB Yuan
Total amount of employees' services exchanged with share
payment
Total amount of other services exchanged with share payment
5. Changes and termination of share payment
(XI) Contingencies
1. Contingent liabilities formed from unsettled lawsuits and arbitrations and the related financial
influence
2. Contingent liabilities formed from provision of liabilities guarantees for other units and the
related financial influence
Other contingent liabilities and the related financial influence:
(XII) Commitments
1. Significant commitments
2. Fulfillment of the initial commitments
(XIII) Matters Occurring after the Issuance of the Balance Sheet
1. Notes on the significant matters occurring after the issuance of the balance sheet
Unit: RMB Yuan
Influenced amount on the financial position Reason for failing to estimate
Item Content
and operating results the influenced amount
2. Profit distribution after the issuance of the balance sheet
Unit: RMB Yuan
Profits or dividends to be distributed
Profits or dividends to be distributed upon approval
178
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
3. Notes on other matters after the issuance of the balance sheet
(XIV) Notes on other important matters
1. Non-monetary assets exchange
2. Debt restructuring
3. Enterprise mergers
4. Lease
5. Outstanding financial instruments convertible to shares at the end of period
6. Main contents and material changes of annuity plan
7. Other significant matters to be disclosed
(XV) Notes on main items in the financial statements of the parent company
1. Accounts receivable
(1) Accounts receivable
Unit: RMB Yuan
Period-end amount Period-beginning amount
Book balance Bad debt provision Book balance Bad debt provision
Type
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Accounts
receivable with a
significant
amount
individually, for 7,163,876.44 77.23% 7,163,876.44 100% 7,163,876.44 77.28% 7,163,876.44 100%
which bad debt
provision is
separately
accrued
Accounts receivable for which bad debt provision is accrued according to different combinations
Combination 1 0 0 0 0
Subtotal of
0.00 0% 0.00 0.00 0% 0.00
combinations
179
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Period-end amount Period-beginning amount
Book balance Bad debt provision Book balance Bad debt provision
Type
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Accounts
receivable with
an insignificant
amount
individually, for 2,111,906.44 22.77% 1,745,306.44 82.64% 2,105,306.44 22.72% 1,745,306.44 82.9%
which bad debt
provision is
separately
accrued
Total 9,275,782.88 -- 8,909,182.88 -- 9,269,182.88 -- 8,909,182.88 --
Notes on types of accounts receivable:
Accounts receivable with a significant amount individually, for which bad debt provision is separately accrued at the end of
the period
√ Applicable □ Not applicable
Unit: RMB Yuan
Contents of accounts receivable Book balance Bad debt provision Accrual proportion Reason for accrual
The account cannot
be recovered
Jiangsu Unicom 3,092,011.09 3,092,011.09 100.00
because the
duration is long.
The account cannot
Shenzhen Liyuanshun Industrial Co., be recovered
1,906,865.35 1,906,865.35 100.00
Ltd. because the
duration is long.
The account cannot
be recovered
Shanghai Tianci Industrial Co., Ltd. 899,000.00 899,000.00 100.00
because the
duration is long.
The account cannot
Financial Information Paging be recovered
786,000.00 786,000.00 100.00
Center of Zhejiang Province because the
duration is long.
The account cannot
Sichuan Huiyuan Electronic be recovered
480,000.00 480,000.00 100.00
Company because the
duration is long.
Total 7,163,876.44 7,163,876.44 -- --
Other accounts receivable in the combination, for which bad debt provision is accrued by the aging analysis method:
□ Applicable √ Not applicable
180
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Accounts receivable in the combination, for which bad debt provision is accrued by the balance percentage analysis
method:
□ Applicable √ Not applicable
Accounts receivable in the combination, for which bad debt provision is accrued by other analysis methods:
□ Applicable √ Not applicable
Accounts receivable with an insignificant amount individually, for which bad debt provision is separately accrued at the
end of the period
□ Applicable √ Not applicable
(2) Other accounts receivable transferred back or recovered in the current report period
Unit: RMB Yuan
Accumulated bad debt
Reason for Basis for confirming
Contents of accounts provision accrued Amount of transferring
transferring back or original bad debt
receivable before transferring back or recovery
recovery provision
back or recovery
Total -- -- --
Accounts receivable with a significant amount individually, or with an insignificant amount individually but for which bad
debt provision is separately accrued:
Contents of accounts
Book balance Bad debt amount Accrual proportion (%) Reason
receivable
Total -- --
Accounts receivable with insignificant individual amount but entailing great risk as a combination based on credit risk
characteristics:
(3) Accounts receivable charged off in the current report period
Unit: RMB Yuan
Whether being
Nature of accounts Amount being Reason for being incurred due to
Name of company Charge-off date
receivable charged off charged off related
transactions
Total -- -- -- --
Notes on accounts receivable charged off:
(4) Shareholder units that hold 5% or more voting shares in the accounts receivable in the current report period
□ Applicable √ Not applicable
181
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
(5) Properties or contents of other accounts receivable with significant amount
(6) Units of top five accounts receivable
Unit: RMB Yuan
Percentage in the total
Relationship with the
Name of company Amount Duration amount of accounts
Company
receivable (%)
Jiangsu Unicom Customer 3,092,011.09 Over 5 years 33.34%
Shenzhen Liyuanshun
Industrial Co., Ltd. Customer 1,906,865.35 Over 5 years
20.56%
Shanghai Tianci
Industrial Co., Ltd. Customer 899,000.00 Over 5 years
9.69%
Financial Information
Paging Center of Customer 786,000.00 Over 5 years
Zhejiang Province 8.47%
Sichuan Huiyuan
Customer 480,000.00 Over 5 years
Electronic Company 5.17%
Total -- 7,163,876.44 -- 77.23%
(7) Accounts receivable from related parties
Unit: RMB Yuan
Percentage in the total
Relationship with the
Name of company Amount amount of accounts
Company
receivable (%)
Total --
(8)
Transferred amounts of accounts receivable that do not conform to the termination conditions (unit: yuan):
(9) If assets are to be securitized taking other accounts receivable as underlying assets, the related transaction
arrangements must be specified briefly .
182
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
2. Other receivables
(1) Other receivables
Unit: RMB Yuan
Period-end amount Period-beginning amount
Book balance Bad debt provision Book balance Bad debt provision
Type
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Other
receivables with
a significant
amount
individually, for 45,871,535.25 56.33% 17,508,951.82 38.17% 51,705,187.89 57.08% 19,177,295.56 37.09%
which bad debt
provision is
separately
accrued
Other receivables for which bad debt provision is accrued according to different combinations
Combination 1
29,455,325.10 36.17% 0 30,593,616.89 33.78 0
Subtotal of
29,455,325.10 36.17% 0.00 30,593,616.89 33.78% 0.00
combinations
Other
receivables with
an insignificant
amount
individually, for 6,104,161.66 7.5% 6,104,161.66 100% 8,281,702.61 9.14% 6,569,437.28 79.32%
which bad debt
provision is
separately
accrued
Total 81,431,022.01 -- 23,613,113.48 -- 90,580,507.39 -- 25,746,732.84 --
Notes on types of other receivables:
Other receivables with a significant amount individually, for which bad debt provision is separately accrued at the end of
the period
√ Applicable □ Not applicable
Unit: RMB Yuan
Content of other
Book balance Bad debt amount Accrual proportion Reason
receivables
Share-controller
Changsha SEG
28,362,583.43 - subsidiaries with no risk
Development Co., Ltd.
of bad debts
183
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Content of other
Book balance Bad debt amount Accrual proportion Reason
receivables
The account cannot be
Yangjiang Yuntong
8,530,276.35 8,530,276.35 100.00 recovered because the
Grease Co., Ltd.
duration is long.
100.00 The account cannot be
Shenzhen Lianjing
5,697,287.51 5,697,287.51 recovered because the
Trade Co., Ltd.
duration is long.
100.00 The account cannot be
Shenzhen Top Industry
3,281,387.96 3,281,387.96 recovered because the
Co., Ltd.
duration is long.
Total 45,871,535.25 17,508,951.82 -- --
Other accounts receivable in the combination, for which bad debt provision is accrued by the aging analysis method:
√ Applicable □ Not applicable
Unit: RMB Yuan
Period-end amount Period-beginning amount
Book balance Book balance
Age
Bad debt
Bad debt provision
Proportion provision Proportion
Amount Amount
(%) (%)
Less than one year
Including: -- -- -- -- -- --
Less than one
29,455,325.10 100% 0 30,593,616.89 100%
year
Subtotal of the
accounts aged 29,455,325.10 100% 0.00 30,593,616.89 100% 0.00
under 1 year
1-2 years
2-3 years
Over 3 years
3-4 years
4-5 years
Over 5 years
Total 29,455,325.10 -- 30,593,616.89 --
Other accounts receivable in the combination, for which bad debt provision is accrued by the balance percentage analysis
method:
□ Applicable □ Not applicable
Other accounts receivable in the combination, for which bad debt provision is accrued by other methods:
184
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
□ Applicable □ Not applicable
Other receivables with an insignificant amount individually, for which bad debt provision is separately accrued at the end
of the period
□ Applicable □ Not applicable
(2) Other accounts receivable transferred back or recovered in the current report period
Unit: RMB Yuan
Accumulated bad debt
Reason for Basis for confirming
Content of other provision accrued Amount of transferring
transferring back or original bad debt
receivables before transferring back or recovery
recovery provision
back or recovery
Total -- -- --
Bad debt provision accrued at the end of the period for the accounts receivable with a significant amount individually or
those with an insignificant amount individually but have separate impairment tests:
Contents of accounts
Book balance Bad debt amount Accrual proportion (%) Reason
receivable
Total -- --
Other accounts receivable with an insignificant amount individually but entailing great risk as a combination based on
credit risk characteristics:
(3) Other receivables charged off in the current report period
Unit: RMB Yuan
Whether being
Amount being Reason for being
Name of company Other receivables Charge-off date incurred due to
charged off charged off
related transactions
Total -- -- -- --
Notes on other accounts receivable charged off:
(4) Shareholder units that hold 5% or more voting shares in other accounts receivable of the current report
period
√ Applicable □ Not applicable
185
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Unit: RMB Yuan
Period-end amount Period-beginning amount
Name of company
Bad debt provision Bad debt provision
Book balance Book balance
accrued accrued
Shenzhen SEG Group Co., Ltd. 86,000.00 - 86,000.00
Total 86,000.00 0.00 86,000.00 0.00
(5) Properties or contents of other accounts receivable with significant amounts
(6) Units of top five other receivables
Unit: RMB Yuan
Percentage in the total
Relationship with the
Name of company Amount Duration amount of other accounts
Company
receivable (%)
Changsha SEG
Subsidiary 34.83%
Development Co., Ltd. 28,362,583.43
SEG Industrial
Subsidiary 24,088,490.03 Less than one year 29.58%
Investment Co., Ltd.
Yangjiang Yuntong Business related
8,530,276.35 Over 3 years 10.48%
Grease Co., Ltd. organization
Shenzhen Lianjing Business related
5,697,287.51 Over 3 years 7.00%
Trade Co., Ltd. organization
Shenzhen Top Industry Business related
4.03%
Co., Ltd. organization 3,281,387.96 Over 3 years
Total -- 69,960,025.28 -- 85.92%
(7) Accounts receivable from other related parties
Unit: RMB Yuan
Relationship with the Percentage in the total amount of
Name of company Amount
Company other accounts receivable (%)
Changsha SEG
Subsidiary 34.83%
Development Co., Ltd. 28,362,583.43
Shenzhen SEG Industrial
Subsidiary 24,088,490.03 29.58%
Investment Co., Ltd.
186
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Relationship with the Percentage in the total amount of
Name of company Amount
Company other accounts receivable (%)
Shenzhen SEG Orient
Industrial Development Co., Joint operation enterprise 443,910.00 0.55%
Ltd.
Total -- 52,894,983.46 64.96%
(8)
Transferred amounts of other accounts receivable that do not conform to the termination conditions (unit: yuan):
(9) If assets are to be securitized taking other accounts receivable as underlying assets, the related transaction
arrangements must be specified briefly.
187
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
3. Long-term equity investment
Unit: RMB Yuan
Notes on the Impairment
Share-holding Voting inconsistency Cash
Invested Accounting Initial Period-beginning Increase
or Period-end proportion in proportion in between the Impairment provision
accrued in dividends of
organization method investment cost balance decrease balance the invested the invested proportion of provision the current the current
unit (%) company (%) shares and period period
voting rights
Shenzhen SEG the equity
Orient Industrial method 400,000.00 20 20
Development
Co., Ltd.
Shenzhen SEG the equity
Samsung Co., method 215,645,740.56 109,816,748.35 475,507.86- 109,341,240.49 22.45 22.45
Ltd.
Shanghai SEG the equity
Electronic Market method 1,750,000.00 8,780,863.41 592,662.39 9,373,525.80 35 35
Co., Ltd.
Subtotal by the 217,795,740.56 118,597,611.76 117,154.53 118,714,766.29
equity method
Shenzhen SEG the cost
Baohua method
Enterprise 18,742,808.93 20,512,499.04 20,512,499.04 66.58 66.58
Development
Co., Ltd. 6,153,749.71
Shenzhen SEG the cost
Industrial method 23,780,000.00 23,780,000.00 23,780,000.00 91.79 91.79
Investment Co.,
Ltd.
Shenzhen SEG the cost
Telecom method 2,979,217.22 2,979,217.22 2,979,217.22 90 90 2,979,217.22
Equipment Co.,
Ltd.
Shenzhen SEG the cost
GPS Scientific method 8,275,321.43 13,515,392.83 13,515,392.83 12.50 12.50
Navigations Co.,
Ltd.
Changsha SEG the cost
Development method 69,000,000.00 69,000,000.00 69,000,000.00 46 51
Co., Ltd.
Shenzhen SEG the cost 2,100,000.00 2,100,000.00 2,100,000.00 70 70 350,000.00
188
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Notes on the Impairment
Share-holding Voting inconsistency Cash
Invested Accounting Initial Period-beginning Increase
or Period-end proportion in proportion in between the Impairment provision
accrued in dividends of
organization method investment cost balance decrease balance the invested the invested proportion of provision the current the current
unit (%) company (%) shares and period period
voting rights
Electronics method
Market
Management
Co., Ltd.
Suzhou SEG the cost
Electronic Market method 1,350,000.00 1,350,000.00 1,350,000.00 45 45
Co., Ltd. 1,125,000.00
Xi’an SEG the cost
Electronic Market method 1,950,000.00 1,950,000.00 1,950,000.00 65 65
Co., Ltd. 2,489,500.00
Shenzhen SEG the cost 54,000,000.00 36 36
Credit Co., Ltd. method 54,000,000.00 54,000,000.00
Shenzhen SEG the cost
E-Commerce method 15,300,000.00 15,300,000.00 15,300,000.00 51 51
Co., Ltd.
Shenzhen SEG the cost
Electronics method
Market 20,000,000.00 20,000,000.00 20,000,000.00 100 100
Management
Co., Ltd.
Xi’an Hairong SEG the cost
Electronic Market method 1,530,000.00 1,530,000.00 1,530,000.00 51 51
Co., Ltd.
Shenzhen SEG the equity
Orient Industrial method 400,000.00 20 20
Development
Co., Ltd.
Subtotal by the 219,007,347.58 226,017,109.09 226,017,109.09 10,118,249.71
cost method 2,979,217.22
Total -- 436,803,088.14 344,614,720.85 117,154.53 344,731,875.38 -- -- -- 2,979,217.22 0.00 10,118,249.71
Notes on long-term equity investment:
189
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
4. Operating income and operating cost
(1) Operating income and cost
Unit: RMB Yuan
Item Amount incurred in the report period Amount incurred in the previous report period
Main operating income 63,626,986.74 49,131,510.09
Other business income 10,073,406.79
Operating cost 31,897,510.12 19,328,330.04
(2) Main operating businesses (by industry)
√ Applicable □ Not applicable
Unit: RMB Yuan
Amount incurred in the previous report
Amount incurred in the report period
period
Name of company
Operating income Operating cost Operating income Operating cost
Electronic market and 63,626,986.74
31,897,510.12 59,204,916.88 19,328,330.04
property leasing services
Total 63,626,986.74 31,897,510.12 59,204,916.88 19,328,330.04
(3) Main operating businesses (by product)
□ Applicable □ Not applicable
(4) Main operating businesses (by region)
□ Applicable □ Not applicable
(5) Operating income from top five customers of the Company
Unit: RMB Yuan
Proportion in the total operating
Name of customer Total operating income
income of the Company (%)
Total
Notes on operating income:
190
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
5. Investment income
(1) Details of investment income
Unit: RMB Yuan
Amount incurred in the report Amount incurred in the
Item
period previous report period
Long-term equity investment income by the cost method 10,118,249.71 7,565,072.00
Long-term equity investment income by the equity
117,154.53 -4,552,269.39
method
Income from disposal of long-term equity investments
Income during the time of holding trading financial
assets
Income from held-to-maturity investments
Income during the time of holding financial assets
available for sale
Income from disposal of trading financial assets
Income from held-to-maturity investments
Income from financial assets available for sale
Others 4,376,679.76
Total 14,612,084.00 3,012,802.61
(2) Long-term equity investment income calculated by the cost method
Unit: RMB Yuan
Amount incurred in
Amount incurred in Reason for increase or decrease
Invested organization the previous report
the report period from the previous period
period
Shenzhen SEG Electronics Market
350,000.00 0.00 Dividends
Management Co., Ltd.
Shenzhen SEG Baohua Enterprise
6,153,749.71 4,923,072.00 Dividends
Development Co., Ltd.
Xi’an SEG Electronic Market Co., Ltd. 2,489,500.00 1,742,000.00 Dividends
Suzhou SEG Electronic Market Co., Ltd. 1,125,000.00 9,000,000.00 Dividends
Total 10,118,249.71 7,565,072.00 --
191
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
(3) Income from long-term equity investment calculated by the equity method
Unit: RMB Yuan
Amount incurred in
Amount incurred in Reason for increase or decrease
Invested organization the previous report
the report period from the previous period
period
Added income caused by assets
Shenzhen SEG Samsung Co., Ltd. -475,507.86 -5,669,357.38 disposal
Shanghai SEG Electronic Market Co.,
592,662.39 1,117,087.99 Profit
Ltd.
Total 117,154.53 -4,552,269.39 --
Notes on investment income
6. Supplementary information to cash flow statement
Unit: RMB Yuan
Amount of the current Amount of the previous
Supplementary materials
period period
1. Reconciliation of net profit to cash flows from operating -- --
Net profit 30,883,821.29 28,869,372.30
Plus: asset impairment provision 0.00 0.00
Depreciation of fixed assets, oil & gas assets and productive
5,770,930.12 6,384,153.18
biological assets
Amortization of intangible assets 80,144.22 82,567.98
Amortization of long-term expenses to be apportioned 303,445.80 299,105.22
Loss from disposal of fixed assets, intangible assets, and other
long-term assets (profit is marked with "-")
Loss from scrapping of fixed asset (profit is marked with "-") 4,034.65
Loss from change in fair value (profit is marked with "-")
Financial expenses (profit is marked with "-") -784,915.43
192
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of the current Amount of the previous
Supplementary materials
period period
Loss from investment (profit is marked with "-") -14,612,084.00 -3,012,802.61
Decrease of deferred income tax assets (profit is marked with
"-")
Increase of deferred income tax liabilities (decrease is marked
with "-")
Decrease of inventories (increase is marked with "-")
Decrease of operating accounts receivable (increase is
6,796,466.02 6,990,097.52
marked with "-")
Increase of operating accounts payable (decrease is marked
-16,987,898.98 -16,931,322.85
with "-")
Others -30,221.11 -1,421,309.57
Net cash flow arising from operating activities 11,423,722.58 21,259,861.17
2. Investing and financing activities not involving cash receipts
-- --
and payments
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets acquired by financing lease
3. Net increase in cash and cash equivalents -- --
Cash at the end of the period 456,964,321.24 447,193,424.50
Less: cash at the beginning of the period 510486998.56 451763240.33
Plus: cash equivalents at the end of the period
Less: cash equivalents at beginning of the period
Net increase in cash and cash equivalents -53,522,677.32 -4,569,815.83
7. Assets and liabilities booked with assessed value in counter purchase
Unit: RMB Yuan
Name of assets and liabilities booked with assessed value Assessed value Original book value
Assets
193
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Liabilities
(XVI) Supplemental Materials
1. ROE and EPS
Unit: RMB Yuan
Earnings per share
Weighted average ROE
Profit in report period
(%) Basic earnings per Diluted earnings per
share share
Net profit attributable to common
2.71% 0.0403 0.0403
shareholders of the Company
Net profit attributable to common
shareholders of the Company after 2.63% 0.0392 0.0392
deduction of recurring losses and gains
2. Abnormalities of main accounts on the financial statements of the Company and notes on the
reasons
(I) Changes of Main Components of Company Assets and Liabilities in the Report Period and Main Reasons for
the Changes
Unit: RMB Yuan
Item June 30, 2012 December 31, 2011 Change rate (%)
Total assets 1,681,865,616.83 1,673,584,777.35 0.49%
Accounts receivable 14,458,092.59 10,372,667.62 39.39%
Dividends receivable 0.00 426,516.21 -100.00%
Inventory 2,244,289.41 633,555.08 254.24%
Loans and advances issued 67,825,995.27 3,534,300.00 1819.08%
Construction in progress 0.00 42,750.00 -100.00%
Accounts payable 5,962,936.90 13,047,530.24 -54.30%
Wages payable 5,610,736.06 10,318,172.65 -45.62%
Taxes payable 19,369,919.77 36,930,773.40 -47.55%
Dividends payable 2,270,089.32 1,466,295.43 54.82%
Other current liabilities 260,000.00 0 100.00%
Total owners' equity attributable
1,184,364,413.81 1,152,695,930.59 2.75%
to the parent company
194
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Reasons for change:
Main reason for increase of accounts receivable: Accounts receivable of SEG Industrial Investment increased with
sales increase in the report period.
Main reason for decrease of dividends receivable: No dividend from SEG Logistics was received in the report period.
Main reason for increase of inventory: Inventory of SEG Industrial Investment increased with sales increase in the
report period.Main reason for increase of loans and advances: The expansion of the small loan business in the report
period led to the increase of loans and hence the increased amount of this item.
Main reason for decrease of construction in progress: In the report period, the completed KOA information projects
were transferred to intangible assets for accounting.
Main reason for decrease of accounts payable: In the report period, after the completion and acceptance inspection of
the Nanjing SEG decoration projects, the unpaid construction cost was settled and the Company transferred the deposit
that was accounted under this item to other accounts payable, which led to the decrease of this item.
Main reason for decrease of wage payable: In the report period, the Company paid the wage of December 2011 and
the year-end bonus of 2011, which were accrued in the end of last year, to its employees.
Main reason for decrease of taxes payable: In the report period, the Company settled the enterprise income tax that
was accrued in 2011 with the tax authorities.Main reason for increase of dividends payables: SEG Baohua had
withdrawn the dividends but has not paid to the minority shareholders in the report period.
Main reason for increase of other current liabilities: Government subsidies for specific purposes were received and
confirmed as deferred income in the report period.
Main reason for increase of owners' equity attributable to the parent company: The Company made profits in the
report period, which led to the increase of undistributed profits.
(II) Change of Operating Results
Unit: RMB Yuan
Jan – Jun Jan – Jun Change rate
Item Reason for change
2012 2011 (%)
The operating expenses of SEG
Logistics were 900,000 yuan at the same
period of the previous year. Because the
Sale expenses 533,710.91 1,413,793.99 -62.25%
Company had sold all equities of SEG
Logistics in 2011, it had no expenses for
SEG Logistics.
1. The bank financial gains of the report
period increased RMB 5.18 million
compared with the same period last
year.
2. In the same period last year, the loss
Investment
7,854,150.20 -4,552,269.39 % of ST Sumsung was RMB 25.25
incomes
million. The loss of the report period
was RMB 2.12 million. The decrease
in the loss of ST Sumsung led to the
year-on-year decrease of RMB 5.19
million in the loss of the Company.
1. Accounts payable of RMB 1.12 million
unpaid were written off in the report
period.
Non-operating
1,774,861.10 362,863.65 389.13% 2. The Company received government
incomes
subsidy of RMB 0.34 million, which
was not available in the same period
of last year.
195
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Jan – Jun Jan – Jun Change rate
Item Reason for change
2012 2011 (%)
1. The gains and losses of SEG Credit
and Xi’an Hairong SEG were added to
Gains and losses
the total gains and losses in the report
of minority 6,297,418.14 1,689,291.29 272.78%
period.
shareholders
2. The profits of subsidiaries increased in
the report period.
Other
The price of Youhao Group shares held
comprehensive 70,999.11 40,563.07 75.03%
rose in the period.
incomes
Total 37,989,629.26
The net profits had a year-on-year
comprehensive 28,062,242.71 35.38%
increase.
incomes
Total
comprehensive
The net profits attributable to the
income attributable 31,668,483.22 20.01% shareholders of parent company had a
26,389,289.19
to shareholders of
year-on-year increase.
the parent
company
Total
comprehensive The net profits attributable to minority
income attributable 6,321,146.04 1,672,953.52 277.84% shareholders had an increase in the
to minority report period.
shareholders
196
2012 Semi-Annual Report of Shenzhen SEG Co., Ltd.
IX. Contents of Reference Documents
Contents of reference documents
(I) The Financial Statements with signatures and seals of the legal person, the responsible person of the accounting
work and the responsible person of the accounting institution;
(II) The original copies of all the files and the manuscripts of public notices of the Company which were disclosed on the
newspapers specified by CSRC in the report period.
Chairman:Wangli
Date of submission approved by the board of directors:23 Aug,2012
197
