Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Shenzhen SEG Co., Ltd.
2013 Semi-Annual Report
August 15, 2013
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Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Chapter 1 Important Notice, Contents, and Definitions
The Board of Directors, the Board of Supervisors, Directors, Supervisors and Senior
Executives of this Company hereby guarantee that no false or misleading statement or major
omission was made to the contents in this Report and that they will assume all the individual
and joint and several liabilities for the trueness, accuracy and completeness of this Report.
All the directors have attended the Board Meeting reviewing the Semi-Annual Report.
The Company plans not to distribute any cash dividends and bonus shares or convert
accumulated funds into share capital.
This report was prepared in both Chinese and English versions. Should there be any
difference in interpretation between the two versions, the Chinese version shall prevail.
Chairman of the Board Wang Li, the Chief Financial Officer Liu Zhijun and the
responsible person of the accounting institution (Accountant in charge) Ying Huadong
hereby declare that the Financial Reports disclosed in this Report are true, accurate and
complete.
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Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
CONTENTS
2013 Semi-Annual Report ..................................................................................................................................... 1
Chapter 1 Important Notice, Contents, and Definitions .................................................................................... 2
Chapter 2 Company Profile .................................................................................................................................. 6
Chapter 3 Summary of Accounting Data and Financial Indexes ...................................................................... 8
Chapter 4 Report of the Board of Directors...................................................................................................... 10
Chapter 5 Important Matters ............................................................................................................................. 30
Chapter 6 Changes in Shares and Information on Shareholders .................................................................... 45
Chapter 7 Information on Directors, Supervisors and Senior Executives...................................................... 49
Chapter 8 Financial Reports............................................................................................................................... 51
Chapter 9 Catalogue of Files Available for Future Reference ....................................................................... 152
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Definitions
Definition Refers to Description
This Company, the Company Refers to Shenzhen SEG Co., Ltd.
SEG Group Refers to Shenzhen SEG Group Co., Ltd.
Shenzhen Huakong SEG Co., Ltd. (formerly known as Shenzhen SEG Samsung Glass
Huakong SEG Refers to
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 Management Co., Ltd.
Xi'an Hairong SEG Refers to Xi'an Hairong SEG Electronics Market Co., Ltd.
Nanjing SEG Refers to Shenzhen SEG (Nanjing) Electronics Market Management Co., Ltd.
Shanghai SEG Refers to Shanghai SEG Electronics Market Operation Management Co., Ltd.
Changsha SEG Refers to Changsha SEG Development Co., Ltd.
Mellow Orange Hotel Refers to Shenzhen Chengguo Business Hotel Management Co., Ltd.
Longgang SEG Refers to Shenzhen SEG Electronics Market Management Co., Ltd.
SEG Industry Refers to Shenzhen SEG Industry Investment Co., Ltd.
SEG E-Commerce Refers to Shenzhen SEG E-Commerce Co., Ltd.
SEG Small Loan Refers to Shenzhen SEG Small Loan Co., Ltd.
SEG GPS Refers to Shenzhen SEG GPS Scientific Navigations Co., Ltd.
Wujiang SEG Refers to Wujiang SEG Electronics Market Management Co., Ltd.
Shunde SEG Refers to Foshan Shunde SEG Electronics Market Management Co., Ltd.
Wuxi SEG Refers to Wuxi SEG Electronics Market Co., Ltd.
SEG New Urban Refers to Shenzhen SEG New Urban Construction Development Co., Ltd.
Nantong SEG Refers to Nantong SEG Times Square Development Co., Ltd.
SEG Real Estate Refers to Shenzhen SEG Real Estate Investment Co., Ltd.
SEG Industry, a holding subsidiary of 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 accessories,
Buy-it store Refers to
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 into joint operation in March 2010.
The commercial real estate project developed and constructed by Nantong SEG,
Nantong Project Refers to
located in Nantong, Jiangsu province.
An comprehensive information platform for electronics market management
SEG Universal Refers to integrated with the functions of access control management, micro-payment, query
system and information distribution.
Friendship Group Refers to Xinjiang Youhao (Group) Co., Ltd.
State-owned Assets Supervision and Administration Commission of Shenzhen
Shenzhen SASAC Refers to
Municipality
CSRC Refers to China Securities Regulatory Commission
Shenzhen Securities Regulatory
Refers to Shenzhen Securities Regulatory Bureau of China Securities Regulatory Commission
Bureau
The Articles of Association Refers to The Articles of Association of Shenzhen SEG Co., Ltd.
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Definition Refers to Description
Media designated by the
The Securities Times, the Securities Daily, the China Securities Journal, the Hong
Company to disclose Refers to
Kong Commercial Daily and the Cninfo Website (http://www.cninfo.com.cn )
information
Unless otherwise specified, the
amount of currency referred to Refers to Amount in RMB
in this Report
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Chapter 2 Company Profile
I. Company Profile
Stock short-form SHEN SEG, SHEN SEG B Stock code 000058, 200058
Listed on Shenzhen Stock Exchange
Company name in Chinese 深圳赛格股份有限公司
Company name in English (if
SHENZHEN SEG CO., LTD.
any)
Legal representative Wang Li
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 31/F, Tower A, the Stars Plaza, Huaqiang
Contact address
Road (N), Futian District, Shenzhen Road (N), Futian District, Shenzhen
Tel. 0755-83747939 0755-83747939
Fax 0755-83975237 0755-83975237
E-mail segcl@segcl.com.cn segcl@segcl.com.cn
III. Other Information
1. Contact Information of the Company
Are there any changes in the Company's registered address, business address and its post code, website address
and e-mail address in this reporting period?
Applicable √ Not applicable
There are no changes in the Company's registered address, business address and its post code, website address,
and e-mail address. Please refer to the 2012 Annual Report for details.
2. Information Disclosure and Filing Site
Are there any changes in the information disclosure and filing site in this reporting period?
Applicable √ Not applicable
There are no changes in the newspaper designated by the Company to disclose information, the website
designated by CSRC to publish the Semi-Annual Report, and the filing site for the Semi-Annual Report in this
reporting period. Please refer to the 2012 Annual Report for details.
3. Changes in Registration Modification Information
Are there any changes in the registration modification information in this reporting period?
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Applicable √ Not applicable
There are no changes in the registration date and locale, registration number of enterprise legal person business
license, tax registration number and organizing institution code in this reporting period. Please refer to the 2012
Annual Report for details.
4. Other Relevant Information
Are there any changes in other relevant information in this reporting period?
Applicable √ Not applicable
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Chapter 3 Summary of Accounting Data and Financial Indexes
I. Major Accounting Data and Financial Indexes
Are retrospective adjustments or restatements made to previous financial statements due to accounting policy
changes or accounting errors?
Yes √ No
Amount of the current Amount of the same period Year-on-year
period of last year increase/decrease (%)
Operating revenue (RMB Yuan) 279,848,108.59 235,045,756.04 19.06%
Net profit attributable to shareholders of
39,674,066.28 31,621,212.01 25.47%
the listed company (RMB Yuan)
Net profit attributable to shareholders of
the listed company after deduction of 38,889,949.37 30,765,074.21 26.41%
non-recurring profit and loss (RMB Yuan)
Net cash flow arising from operating
-60,697,293.78 -50,775,759.58 -19.54%
activities (RMB Yuan)
Basic earnings per share (Yuan/Share) 0.0506 0.0403 25.56%
Diluted earnings per share (Yuan/Share) 0.0506 0.0403 25.56%
Weighted average ROE (%) 3.26% 2.71% 0.55%
Ending amount of the Year-on-year
Ending amount of last year
current period increase/decrease (%)
Total assets (RMB Yuan) 1,786,941,492.84 1,740,697,285.20 2.66%
Net assets attributable to shareholders of
1,235,232,773.78 1,195,672,946.25 3.31%
the listed company (RMB Yuan)
II. Differences in Accounting Data between Chinese and Overseas Accounting Standards
1. Differences in net profit and net assets in the financial reports simultaneously calculated based on
international and Chinese accounting standards
Unit: RMB Yuan
Net profit attributable to shareholders of the listed Net assets attributable to shareholders of the
company listed company
Amount of the current Amount of the previous Period-beginning
Period-end amount
period period amount
Based on Chinese accounting
39,674,066.28 31,621,212.01 1,235,232,773.78 1,195,672,946.25
standards
Adjusted items and amounts based on international accounting standards:
Based on international
39,674,066.28 31,621,212.01 1,235,232,773.78 1,195,672,946.25
accounting standards
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2. Differences in net profit and net assets in the financial reports simultaneously calculated based on
overseas and Chinese accounting standards
Unit: RMB Yuan
Net profit attributable to shareholders of the listed Net assets attributable to shareholders of the
company listed company
Amount of the current Amount of the previous Period-beginning
Period-end amount
period period amount
Based on Chinese accounting
39,674,066.28 31,621,212.01 1,235,232,773.78 1,195,672,946.25
standards
Adjusted items and amounts based on overseas accounting standards:
0.00 0.00 0.00 0.00
Based on overseas accounting
39,674,066.28 31,621,212.01 1,235,232,773.78 1,195,672,946.25
standard
3. Explanations of the differences in accounting data between Chinese and overseas accounting standards
Applicable √ Not applicable
III. Items of Non-Recurring Profit and Loss and Related Amounts
Unit: RMB Yuan
Item Amount Note
Profit and loss from disposal of non-current assets (including the
39,442.74 Income from disposal of fixed assets
write-off of assets depreciation reserves)
In this reporting period, the holding
subsidiaries received Shenzhen Special
Fund for Internet Service Innovation
Government subsidies recorded into current profit and loss Support Program, Shenzhen Futian
(except those closely related with corporate business and enjoyed 1,088,917.36 District Special Fund for Scientific and
by quotas according to national unified standards) Technological Development Projects of
the Industry Development Program, and
Changsha Furong District Support Fund
of the Bureau of Commerce and Trade.
Other non-operating revenue and expenses except the Liquidated damages paid by commercial
358,855.54
above-mentioned items tenants
Less: influenced amount of income tax 82,843.78
Influenced amount of minority shareholders' equity (after
620,254.95
tax)
Total 784,116.91 --
An explanation shall be made with regard to the Company's considerations for defining non-recurring profit and
loss according to the Explanatory Announcement No. 1 on Information Disclosure for Companies’ Offering
Their Securities to the Public – Non-recurring Profit and Loss and the reason of defining the non-recurring
profit and loss listed in this Announcement as recurring one.
Applicable √ Not applicable
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Chapter 4 Report of the Board of Directors
I. Overview
In the first half of the year 2013, the domestic economy presented the situation of “stabilization through decline”,
however, it still lies in the running status of “weak cycle and low growth rate”. （按通知增加）The Company has
stepped into the third year of its "12th Five-Year" Strategic Plan implementation in 2013. In this reporting period,
the Company has adhered to the management concept of "securing the foothold, focusing on key points, and
shifting the business direction", continued to strengthen its independent innovation, and vigorously exploited the
business in electronics market, e-business, small loan service, and channeled retail terminal service. The
Company's main business in electronics markets is developing steadily, with enhanced profitability of main
business as a result of improved operation and management of the physical market. The Company has
continuously made creative efforts to conduct beneficial trials on the business model of the SEG digital
selections stores and SEG e-Outlets. The new projects of the Company have proceeded in an orderly manner. In
this reporting period, contracts of three new markets were signed and four new markets were opened for business
while the Company was propelling the Nantong SEG commercial real estate project. Based on the needs in
business development, the Company has repositioned and adjusted the business model of Shenzhen SEG
E-Commerce Co., Ltd., 51% shares of which is held by the Company, clearly defining its business development
direction and business model. Through coordinated development of strategic business, such as electronics market,
e-commerce, channeled retail terminals, and small loan services, the Company enhances its core competence and
brand influence of its main business – SEG Electronics Market.
In this reporting period, the Company achieved the total operating revenue of RMB 292.942 million, with a
increase rate of 21.06% over the same period of last year. The increase in the operating revenue is mainly
attributed to: 1. the development of the physical electronics market business; 2. the expansion of the agent
procurement and retail channel service by SEG Industry; 3. the increase in entrusted management markets with
more revenue in brand royalties and management fees over the same period of last year; 4. the substantial
increase in revenue in the small loan service.
In this reporting period, the Company achieved the net profit (attributable to shareholders of the listed company)
of RMB 39.6741 million, with an increase of 25.47% over the same period of last year. The increase in the net
profit is mainly attributed to: 1. the increased profits in all electronics markets over the same period of last year;
2. the development of scale of the small loan service; 3. the increased revenue in brand royalties, brand
management fees, and business management fees paid by newly opened entrusted management markets in this
reporting period.
II. Analysis of Main Business
Overview
Main business of the Company includes development and operation of specialized electronics market and
auxiliary projects, property lease service, channeled retail terminal service of IT products, e-commerce, and
value-added service of small loan.
(1) Operation of electronics markets
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In 2013, the electronics market business has faced increasingly fierce competition, among which the e-commerce
has exerted significant impact upon the physical market. Confronted with the intense competition, the Company
has strategically strengthened the research and trial on the new model of electronics market business and given
full play to its advantage of resource synergy in national market chains, so as to further promote the innovation
in electronics market business and the market expansion speed while ensuring stable market operation.
In this reporting period, Huainan SEG Electronics Market (in entrusted operation and management mode) was
opened on January 19, and Shunde SEG Electronics Market (100% equity held by the Company), Wujiang SEG
Electronics Market (51% equity held by the Company) and Ningbo SEG Digital Square (in entrusted operation
and management mode) were opened on April 28. Nanning SEG and Wuxi SEG are under preparation. The
contracts of Nanchang Project (in entrusted operation and management mode), Chengdu Project (in entrusted
operation and management mode), and Wuhu Project (in entrusted operation and management mode) were also
officially signed in this reporting period.
In the first half of 2013, the Company has continuously enhanced its capabilities for operating and managing the
electronics markets while ensuring stable market operation and realizing the work objective of "zero accident" in
safety management. In spite of economic downturn and intense channel competition, the Company has made
favorable achievements. Years of endeavor now has witnessed continuous improvement in the aspects of
capturing market hotspots, operational innovation and so on. While actively expanding new markets, the
Company has explored the new business model of "SEG digital selections stores" and "SEG mobile phone
selections stores".
As of June 30, 2013, the Company has achieved the total operating revenue of RMB 146.8966 million in the
business of electronics markets, with a increase rate of 20.52% over the same period of last year; RMB 54.5079
million has been realized in total profit, with an increase rate of 27.09% over the same period of last year.
(2) Property lease
The property operation of SEG Baohua, a holding subsidiary of the Company, was relatively stable in the first
half year, yet the property lease in the entire Huaqiang North area in Shenzhen was in recession. Although the
rate of un-leased area of office buildings was continuously rising while the rent was decreasing sharply, the
property lease rate of SEG Baohua maintained at above 98% in this reporting period. At mean while,the rent
which SEG Baohua charges tenants is highest among all the office building in Huaqiang Road
North,Shenzhen,Area. Under the adverse influence of the recession in domestic mobile phone business, the
construction barrier of Shenzhen Metro Line 7 and related traffic control, the property lease rate and the rental
unit price declined over the same period of last year. In this reporting period, regarding the property lease service,
the company achieved the total operating revenue of RMB 34.8446 million, with an increase of 5.83% over the
same period of last year, and a total profit of RMB 5.3226 million, with a decrease of 11.85% over the same
period of last year.
(3) Channeled retail terminal service of IT products
SEG Industry, a wholly-owned subsidiary of the Company, is mainly engaged in the channeled retail terminal
service of IT products. In this reporting period, the Company achieved the total operating revenue of RMB
12.6078 million in the channel service, with an increase of 89.93% over the same period of last year.
(4) E-commerce
In this reporting period, the Company repositioned the e-commerce business platform, and will develop the
"Online SEG Electronics Market" V2.0 to build a B2B2C transaction platform for electronics industry. The
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platform gives priority to wholesale and is supplemented by retail, and provides domestic and international
e-commerce services for users in the industry. Based on the SEG Network V3.5, SEG E-Commerce will improve
the existing platform business model and actively seek for and make a new profit pattern. In this reporting period,
the Company achieved revenue of RMB 210,900 in the e-commerce business, and had a total loss of RMB
3.3541 million in profit with an increase of 12.11% in loss over the same period of last year.
(5) Small loan service
Small loans were fast offered in the first half of 2013. On the basis of offering all capital funds of the Company
and making use of bank financing, the Company increased small loan limit and strengthened its profitability. In
this reporting period, regarding the small loan service, the Company realized the total operating revenue of RMB
13.4599 million and a total profit of RMB 8.0493 million. The small loan service has developed steadily with a
loan balance of RMB 163.7906 million by the end of this period.
Year-on-year changes in main financial data
Unit: RMB Yuan
Amount of the current Amount of the same Year-on-year
Reason for change
period period of last year increase/decrease (%)
Operating revenue 279,848,108.59 235,045,756.04 19.06%
Operating cost 212,671,918.66 175,042,563.79 21.5%
SEG Industry's expansion in
channel business increased the
charges for services provided
Sales expenses 1,290,509.28 533,710.91 141.8%
by third parties and fees for
warehousing and
transportation.
Management expenses 17,031,998.58 20,248,784.19 -15.89%
Financial expenses -5,163,964.97 -5,185,253.01 -0.41%
Brand royalties for entrusted
operation and management
markets in this reporting period
Income tax 17,245,618.33 12,570,269.04 37.19%
increased over the same period
of last year, thereby increasing
the taxable income.
The R&D expenditure in this
reporting period was mainly
spent on the R&D and
construction of SEG Network
and SEG Universal. In this
reporting period, the Company
R&D input 756,251.66 1,652,452.55 -54.23% completed the upgrade of the
SEG Network V3.5 and the
construction of the SEG
Network and SEG Universal of
mobile phone version. The
R&D and construction of SEG
Network and SEG Universal
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Amount of the current Amount of the same Year-on-year
Reason for change
period period of last year increase/decrease (%)
enabled the website to better
accommodate to the fast
updated business development
needs for more intelligent and
convenient market services,
thus strengthening the core
competence of the Company.
Net cash flow arising
-60,697,293.78 -50,775,759.58 -19.54%
from operating activities
The bank financing investment
Net cash flow arising
in this reporting period reduced
from investment 37,126,713.65 -9,798,136.07
over the same period of last
activities
year.
The dividend distribution for
non-wholly owned subsidiaries
Net cash flow arising of this year increased, so the
-7,672,883.90 -4,699,115.60 -63.28%
from financing activities dividend for minority
shareholders correspondingly
increased.
The comprehensive influence
of the cash flows arising from
Net increase in cash and operating, investment and
-31,243,764.41 -65,272,677.31 52.13%
cash equivalents financing activities caused the
increase in this item on a
year-on-year basis.
Information on major changes in the profit structure or profit sources of the Company in this reporting period
Applicable √ Not applicable
There are no major changes in the profit structure or profit sources of the Company in this reporting period.
Information on the future development and planning which was disclosed in public disclosure documents such as
the prospectus, placement memorandum, and asset restructuring report of the Company extended into this
reporting period
Applicable √ Not applicable
There is no future development and planning which was not disclosed in public disclosure documents such as the
prospectus, placement memorandum, and asset restructuring report of the Company extended into this reporting
period.
The Company looks back over and summarizes the implementation of early disclosed business plans in this
reporting period.
In the first half year of 2013, the Company laid its emphasis on "securing the foothold, focusing on key points,
and shifting the business direction" in accordance with the preset operation plans.
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1. On the basis of "securing the foothold", the Company spared no efforts to improve the basic management by
conducting innovative management, benchmarking management and internal-control construction, and
implemented incentive mechanism in the holding companies to promote the talent introduction and cultivation.
2. The Company laid much emphasis on the construction, promotion and implementation of key projects. (1) The
Nantong project is under active preparation. In this reporting period, the Company obtained the land use right of
a land plot in Nantong through bidding, and completed the registration of Nantong SEG Times Square
Development Co., Ltd. In addition, the whole onsite "five supplies and one leveling" work of the project was
finished as well. Currently, the project design is under improvement. (2) The coordinated development of all
sorts of businesses has made substantial progress that SEG electronics markets made strategic cooperation plan
with SEG Small Loan, and SEG Computer Hospital has run its business in seven invested and holding markets.
(3) The Company also expanded its commercial real estate projects and conducted field investigation against
several land plots as candidates for projects. (4) The offering of Phase I short-term financing bonds of the
Company in 2013 is proceeding as planned, so as to make fund guarantee for the acceleration of the business
development for the Company.
3. The Company conducted field investigation of the feasibility of providing electronics market services in the
third- and fourth-tier cities, repositioned the existing business model of the e-commerce platform, and made the
preliminary new profit pattern. Meanwhile, the Company actively explored new electronics market operating
models. In this reporting period, the Nanjing SEG "SEG digital selections stores" and "SEG mobile phone
selection stores" were opened smoothly.
III. Composition of Main Business
Unit: RMB Yuan
Year-on-year Year-on-year Year-on-year
Total operating Gross profit rate increase/decrease increase/decrease increase/decrease
Operating cost
revenue (%) of operating of operating cost of gross profit
income (%) (%) rate (%)
Classified by industry
Electronics
markets and
181,741,183.28 116,124,886.47 36.1% 14.38% 17.35% -1.62%
property lease
businesses
Trade 87,744,338.43 85,699,912.97 2.33% 30.99% 29.93% 0.79%
Finance 13,459,859.52 1,163,309.80 91.36% 158.33% 331.45% -3.47%
Classified by product
Not applicable
Classified by region
Shenzhen 212,564,655.73 144,778,340.20 31.89% 21.71% 21.86% -0.09%
Xi'an 24,752,116.45 18,129,611.48 26.76% 12.03% 9.04% 2.01%
Suzhou 23,027,258.40 18,848,356.52 18.15% 26.97% 30.68% -2.32%
Changsha 14,462,011.42 12,000,241.29 17.02% 15.18% 6.46% 6.8%
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Nanjing 17,092,962.69 15,975,591.28 6.54% 17.46% 14.79% 2.18%
Foshan 1,043,036.07 2,443,053.42 -134.23%
IV. Analysis of Core Competence
Currently, the Company is mainly engaged in development, operation and value-added services of the
specialized electronics market and auxiliary projects. By the end of June 30, 2013, the Company has set up 25
SEG physical electronics markets (including SEG Digital Squares) with over 500,000 m2 of floor area, which
forms a nationwide chain of specialized electronics market system covering Pearl River Delta and Yangtze River
Delta. Through 25 years of effort, SEG Electronics Market stands out as the largest specialized electronics
markets in China and even in Asia delivering electronic components, IT products and communications products,
and has great brand influence at home and abroad. In this reporting period, Shenzhen SEG Electronics Market
won the honorary title of "Top Ten Flagship Markets of Specialized Electronics Market Operation in China" in
"The Thirteenth Annual Assembly of Specialized Electronics Market in China" guided by the Bureau of
Operation Monitoring and Coordination of MIIT (the Ministry of Industry and Information) and organized by
China Electronics Chamber of Commerce. Besides, Liu Zhijun, the General Manager of the Company, was
awarded the honorary title of "Top Ten Operators in Specialized Electronics Market in China" again.
In recent years, the Company focused on its core strategic business – electronics market operation and
management, and extended its value chain in timely response to market changes. In order to strengthen the core
competence of main business, the Company established SEG E-Commerce and SEG Small Loan. Centering on
real markets, the Company combined online business with offline business, market services with financial
value-added services, specialized markets with selections stores, supermarkets and channel distribution, and
lease and entrusted development with self-development of IT complex, so as to enhance the SEG-style core
competence in coordinated development of businesses, and combination of tangible and intangible markets.
V. Analysis of Investment
1. Outward Equity Investment
(1) Investment of the Company
Outward Investment of the Company
Investment in this reporting period Investment in the same period of last year (RMB
Increase/decrease (%)
(RMB Yuan) Yuan)
60,776,000 0.00 100%
Information about the invested companies
Equity ratio of listed company in
Company name Main business
invested company (%)
Shenzhen SEG New Urban
Construction and Development Co., Development and construction of real estate 20%
Ltd.
Development of urban infrastructure and auxiliary
Kashgar Shenzhen City Investment
projects, development and operation of real estate, 3.03%
Development Co., Ltd.
sales of commercial housing, property lease, property
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management and investment, and relevant asset
management
Development and operation of real estate, lease and
Nantong SEG Times Square
sales of self-owned house, property management, and 100%
Development Co., Ltd.
sales of electronic products
Nanning SEG Electronics Market
Operation and management of electronics markets 100%
Management Co., Ltd.
(2) Investment in securities
Share-holding Profit and
Short form Initial Shares held Share-holding Book value at Source
Securities Securities proportion at Shares held loss in this Accounting
of investment cost at period proportion at period end of
type code period at period end reporting item
securities (RMB Yuan) beginning period end (%) (RMB Yuan) shares
beginning (%) period
Financial
Friendship assets Initial
Stock 600778 90,405.00 60,683 0.04% 60,683 0.04% 422,960.51 0.00
Group available share
for sale
Long-term
Huakong Initial
Stock 000068 279,307,046.38 201,345,033 22.45% 201,345,033 22.45% 107,220,201.27 -3,979,819.79 equity
SEG share
investment
Total 279,397,451.38 201,405,716 -- 201,405,716 -- 107,643,161.78 -3,979,819.79 -- --
Explanation of equity of other listed companies held by the Company
Applicable √ Not applicable
2. Entrusted Financing, Derivative Investment, and Entrusted Loan
(1) Entrusted financing
Unit: RMB ten thousand Yuan
Amount of Actual
Amount of
actually amount of
Name of Related-party Amount of Remuneration impairment
Association Product retracted Anticipated profit and
entrusted transaction or entrusted Start date End date determination provision
relationship type principal in income loss in this
party not financing pattern withdrawn
current reporting
(if any)
period period
Huo Li January 4, Floating
BOC None No 669 July 6, 2012 669 15.01 15.01
Bao 2013 income
None Huo Li January 4, Floating
BOC No 6,021 July 9, 2012 6,021 132.87 132.87
Bao 2013 income
None Huo Li August 13, February Floating
BOC No 3,500 3,500 75.52 75.52
Bao 2012 8, 2013 income
None Zhong Yin
October 17, March 13, Floating
BOC No Ri Ji Yue 500 500 2.27 2.27
2012 2013 income
Lei
BOC None No Huo Li 1,800 November January Floating 1,800 17.19 17.19
16
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of Actual
Amount of
actually amount of
Name of Related-party Amount of Remuneration impairment
Association Product retracted Anticipated profit and
entrusted transaction or entrusted Start date End date determination provision
relationship type principal in income loss in this
party not financing pattern withdrawn
current reporting
(if any)
period period
Bao 9, 2012 31, 2013 income
None Huo Li January 21, April 22, Floating
BOC No 5,000 5,000 58.59 58.59
Bao 2013 2013 income
None Huo Li January 23, April 23, Floating
BOC No 5,000 5,000 56.71 56.71
Bao 2013 2013 income
None Zhong Yin
February 1, February Floating
BOC No Ri Ji Yue 5,000 5,000 0.95 0.95
2013 4, 2013 income
Lei
None Zhong Yin
February 1, March 20, Floating
BOC No Ri Ji Yue 700 700 2.07 2.07
2013 2013 income
Lei
None Zhong Yin
February 1, March 12, Floating
BOC No Ri Ji Yue 1,841 1,841 4.52 4.52
2013 2013 income
Lei
None Huo Li February 4, March 6, Floating
BOC No 5,000 5,000 15.61 15.61
Bao 2013 2013 income
None Zhong Yin
February 7, March 20, Floating
BOC No Ri Ji Yue 1,000 1,000 2.58 2.58
2013 2013 income
Lei
None Zhong Yin
February 8, February Floating
BOC No Ri Ji Yue 3,500 3,500 2.43 2.43
2013 19, 2013 income
Lei
None Zhong Yin
March 7, March 20, Floating
BOC No Ri Ji Yue 3,400 3,400 2.79 2.79
2013 2013 income
Lei
None Zhong Yin
March 12, March 20, Floating
BOC No Ri Ji Yue 1,850 1,850 0.93 0.93
2013 2013 income
Lei
None Zhong Yin
March 13, April 10, Floating
BOC No Ri Ji Yue 800 800 1.41 1.41
2013 2013 income
Lei
None Zhong Yin
March 13, May 24, Floating
BOC No Ri Ji Yue 600 600 2.72 2.72
2013 2013 income
Lei
None Zhong Yin
April 2, May 14, Floating
BOC No Ji Zhi 1,000 1,000 4.72 4.72
2013 2013 income
Tong
BOC None No Zhong Yin 5,000 April 26, June 25, Floating 5,000 32.47 32.47
17
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Amount of Actual
Amount of
actually amount of
Name of Related-party Amount of Remuneration impairment
Association Product retracted Anticipated profit and
entrusted transaction or entrusted Start date End date determination provision
relationship type principal in income loss in this
party not financing pattern withdrawn
current reporting
(if any)
period period
Ji Zhi 2013 2013 income
Tong
None Zhong Yin
May 3, July 9, Floating
BOC No Ji Zhi 5,000 0 35.79 0
2013 2013 income
Tong
None Zhong Yin
May 3, July 9, Floating
BOC No Ji Zhi 2,000 0 14.32 0
2013 2013 income
Tong
None Zhong Yin
May 10, July 12, Floating
BOC No Ji Zhi 3,000 0 20.19 0
2013 2013 income
Tong
None Zhong Yin
May 27, June 4, Floating
BOC No Ri Ji Yue 3,400 3,400 1.71 1.71
2013 2013 income
Lei
None Zhong Yin
May 28, Septembe Floating
BOC No Ji Zhi 2,000 0 27.39 0
2013 r 24, 2013 income
Tong
None Zhong Yin
June 4, June 8, Floating
BOC No Ri Ji Yue 4,000 4,000 1.01 1.01
2013 2013 income
Lei
None Huo Li June 8, July 11, Floating
BOC No 4,000 0 18.81 0
Bao 2013 2013 income
None Jin Feng October 12, January Floating
ICBC No 900 900 1.92 1.92
Li 2012 10, 2013 income
None Jin Feng October 26, January Floating
ICBC No 2,000 2,000 7.77 7.77
Li 2012 24, 2013 income
None Term
variable October 29, April 25, Floating
BOC No 1,848.04 1,848.04 29.65 29.65
structured 2012 2013 income
financing
None Jin Feng November February Floating
ICBC No 1,000 1,000 4.38 4.38
Li 2, 2012 5, 2013 income
None Corporate
January 5, Floating
ICBC No short-term 5,000 July 5, 2012 5,000 110.73 110.73
2013 income
financing
None Corporate
July 12, January 7, Floating
ICBC No short-term 3,000 3,000 66.21 66.21
2012 2013 income
financing
18
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of Actual
Amount of
actually amount of
Name of Related-party Amount of Remuneration impairment
Association Product retracted Anticipated profit and
entrusted transaction or entrusted Start date End date determination provision
relationship type principal in income loss in this
party not financing pattern withdrawn
current reporting
(if any)
period period
None Corporate
October 26, January Floating
ICBC No short-term 3,000 3,000 33.29 33.29
2012 24, 2013 income
financing
None Fund C of
January 17, April 16, Floating
ICBC No Phase 3 in 3,000 3,000 31.8 31.8
2013 2013 income
2013
None Fund A of
January 31, March 6, Floating
ICBC No Phase 5 in 3,000 3,000 10.93 10.93
2013 2013 income
2013
None Fund A of
April 3, May 22, Floating
ICBC No Phase 13 3,000 3,000 16.43 16.43
2013 2013 income
in 2013
None Gong Yin
Li Cai
April 24, July 23, Floating
ICBC No Gong Ying 4,000 0 40.44 0
2013 2013 income
QER1303
7
None Huo Li September Septembe Floating
BOC No 500 0 22.01 0
Bao 17, 2012 r 13, 2013 income
None Huo Li September Septembe Floating
BOC No 300 0 13.76 0
Bao 28, 2012 r 27, 2013 income
None Huo Li October 31, October Floating
BOC No 1,000 0 44 0
Bao 2012 31, 2013 income
None Gong Yin
Li Cai December July 12, Floating
ICBC No 200 0 5.06 0
Gong Ying 12, 2012 2013 income
No. 1
None Huo Li February February Floating
BOC No 1,500 1,500 91.49 91.48
Bao 27, 2012 27, 2013 income
None Gong Yin
Li Cai January 5, Floating
ICBC No 1,500 July 5, 2012 1,500 34.21 34.21
Gong Ying 2013 income
No. 3
None Zhong Yin
Ji Fu January 31, January Floating
BOC No 1,500 0 70.5 0
Zhuan 2013 31, 2014 income
Xiang
None Zhong Yin March 15, March 14, Floating
BOC No 1,500 0 65.82 0
Ping 2013 2014 income
19
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of Actual
Amount of
actually amount of
Name of Related-party Amount of Remuneration impairment
Association Product retracted Anticipated profit and
entrusted transaction or entrusted Start date End date determination provision
relationship type principal in income loss in this
party not financing pattern withdrawn
current reporting
(if any)
period period
WenShou
Yi
None Gong Yin
Li Cai “Ri
Sheng Yue March 13, March 28, Floating
ICBC No 200 200 0.2 0.2
Heng” 2013 2013 income
increment
al gains
None Gong Yin
Li Cai “Ri
Sheng Yue April 7, April 27, Floating
ICBC No 300 300 0.41 0.41
Heng” 2013 2013 income
increment
al gains
None Gong Yin
Li Cai
Gong Ying May 8, July 18, Floating
ICBC No 1,200 0 9.34 0
No. 2013 2013 2013 income
QER1304
2
None Gong Yin
Li Cai January 6, February Floating
ICBC No 900 900 5.13 5.13
Gong Ying 2013 27, 2013 income
2012
None Gong Yin
Li Cai March 8, May 9, Floating
ICBC No 600 600 4.08 4.08
Gong Ying 2013 2013 income
2013
None Gong Yin
Li Cai March 7, April 16, Floating
ICBC No 200 200 0.85 0.85
Gong Ying 2013 2013 income
2013
None Gong Yin
Li Cai April 26, May 30, Floating
ICBC No 200 200 0.73 0.73
Gong Ying 2013 2013 income
2013
None Gong Yin
Li Cai May 10, August Floating
ICBC No 400 0 4.27 0
Gong Ying 2013 13, 2013 income
2013
20
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of Actual
Amount of
actually amount of
Name of Related-party Amount of Remuneration impairment
Association Product retracted Anticipated profit and
entrusted transaction or entrusted Start date End date determination provision
relationship type principal in income loss in this
party not financing pattern withdrawn
current reporting
(if any)
period period
None Gong Yin
Li Cai May 14, June 27, Floating
ICBC No 100 100 0.47 0.47
Gong Ying 2013 2013 income
2013
None Yun Tong
Cai Fu,
June 28, August 2, Constant
BOCOM No 35-day 100 0 0.59 0
2013 2013 return
self-profiti
ng
None One-day December January Constant
BOC No 382 382 1.06 1.06
notice 18, 2012 31, 2013 return
None Zhong Yin
February 1, February Constant
BOC No Ri Ji Yue 382 382 0.14 0.14
2013 7, 2013 return
Lei
None Zhong Yin
February 7, February Constant
BOC No Ri Ji Yue 908 908 1.09 1.09
2013 26, 2013 return
Lei
None Zhong Yin
March 4, March 26, Constant
BOC No Ri Ji Yue 1,282 1,282 1.78 1.78
2013 2013 return
Lei
None Zhong Yin
April 1, April 12, Constant
BOC No Ri Ji Yue 1,222 1,222 0.85 0.85
2013 2013 return
Lei
None Zhong Yin
April 22, April 24, Constant
BOC No Ri Ji Yue 1,000 1,000 0.13 0.13
2013 2013 return
Lei
None Opening May 2, May 7, Constant
BOC No 2,235 2,235 0.92 0.92
to period 2013 2013 return
None Zhong Yin
May 7, May 10, Constant
BOC No Ri Ji Yue 2,236 2,236 0.42 0.42
2013 2013 return
Lei
None Opening May 10, May 13, Constant
BOC No 2,236 2,236 0.53 0.53
to period 2013 2013 return
None Zhong Yin
May 13, May 29, Constant
BOC No Ri Ji Yue 2,236 2,236 2.11 2.11
2013 2013 return
Lei
None Zhong Yin
May 31, June 25, Constant
BOC No Ri Ji Yue 46 46 0.07 0.07
2013 2013 return
Lei
21
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of Actual
Amount of
actually amount of
Name of Related-party Amount of Remuneration impairment
Association Product retracted Anticipated profit and
entrusted transaction or entrusted Start date End date determination provision
relationship type principal in income loss in this
party not financing pattern withdrawn
current reporting
(if any)
period period
None Zhong Yin
June 25, June 27, Constant
BOC No Ri Ji Yue 531 531 0.07 0.07
2013 2013 return
Lei
None No fixed January 1, June 30, Constant
ICBC No 1,070 1,070 12.13 12.13
term 2013 2013 return
None Jin Feng October 12, January Constant
ICBC No 900 900 6.5 6.5
Li 2012 10, 2013 return
None Jin Feng October 26, January Constant
ICBC No 2,000 2,000 12.9 12.9
Li 2012 24, 2013 return
None Jin Feng November February Constant
ICBC No 1,000 1,000 5.7 5.7
Li 2, 2012 5, 2013 return
None Jin Feng October 29, April 25, Constant
ICBC No 1,848 1,848 13.8 13.8
Li 2012 2013 return
None Zhong Yin
Ji Fu February August Floating
BOC No 600 0 12.95 0
Zhuan 28, 2013 23, 2013 income
Xiang
None Zhong Yin
April 16, May 21, Floating
BOC No Ji Zhi 400 400 1.48 1.48
2013 2013 income
Tong
None Zhong Yin May 23, Novembe Floating
BOC No 400 0 8.05 0
Zhi Hui 2013 r 22, 2013 income
None Gong Yin
Li Cai
Gong Ying
January 10, February Floating
ICBC No No. 3 500 500 2.26 2.26
2013 18, 2013 income
Fund B of
Phase 2 in
2013
None Gong Yin
Li Cai “Ri March 21, April 2, Floating
ICBC No 30 30 0.02 0.02
Sheng Yue 2013 2013 income
Heng”
None Gong Yin
Li Cai “Ri March 27, April 2, Floating
ICBC No 30 30 0.01 0.01
Sheng Yue 2013 2013 income
Heng”
None Gong Yin March 27, April 2, Floating
ICBC No 30 30 0.01 0.01
Li Cai “Ri 2013 2013 income
22
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of Actual
Amount of
actually amount of
Name of Related-party Amount of Remuneration impairment
Association Product retracted Anticipated profit and
entrusted transaction or entrusted Start date End date determination provision
relationship type principal in income loss in this
party not financing pattern withdrawn
current reporting
(if any)
period period
Sheng Yue
Heng”
None Gong Yin
Li Cai “Ri March 27, April 2, Floating
ICBC No 30 30 0.01 0.01
Sheng Yue 2013 2013 income
Heng”
None Gong Yin
Li Cai “Ri March 27, April 2, Floating
ICBC No 30 30 0.01 0.01
Sheng Yue 2013 2013 income
Heng”
None Gong Yin
Li Cai “Ri March 27, April 11, Floating
ICBC No 30 30 0.03 0.03
Sheng Yue 2013 2013 income
Heng”
None Gong Yin
Li Cai “Ri March 27, April 11, Floating
ICBC No 30 30 0.03 0.03
Sheng Yue 2013 2013 income
Heng”
None Gong Yin
Li Cai “Ri March 27, May 27, Floating
ICBC No 30 30 0.16 0.16
Sheng Yue 2013 2013 income
Heng”
None Gong Yin
Li Cai “Ri March 27, May 27, Floating
ICBC No 30 30 0.16 0.16
Sheng Yue 2013 2013 income
Heng”
Gong Yin
Li Cai “Ri March 27, June 27, Floating
ICBC None No 30 30 0.25 0.25
Sheng Yue 2013 2013 income
Heng”
None Gong Yin
Li Cai “Ri March 27, June 27, Floating
ICBC No 30 30 0.25 0.25
Sheng Yue 2013 2013 income
Heng”
None Gong Yin
Li Cai “Ri March 27, June 30, Floating
ICBC No 30 0 0.26 0
Sheng Yue 2013 2013 income
Heng”
None Gong Yin March 27, June 30, Floating
ICBC No 30 0 0.26 0
Li Cai “Ri 2013 2013 income
23
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of Actual
Amount of
actually amount of
Name of Related-party Amount of Remuneration impairment
Association Product retracted Anticipated profit and
entrusted transaction or entrusted Start date End date determination provision
relationship type principal in income loss in this
party not financing pattern withdrawn
current reporting
(if any)
period period
Sheng Yue
Heng”
None Gong Yin
Li Cai “Ri March 27, June 30, Floating
ICBC No 30 0 0.26 0
Sheng Yue 2013 2013 income
Heng”
None Gong Yin
Li Cai
Gong Ying
April 10, May 20, Floating
ICBC No No. 3 500 500 2.19 2.19
2013 2013 income
Fund B of
Phase 14
in 2013
None Gong Yin
Li Cai
Gong Ying
May 28, July 8, Floating
ICBC No No. 3 500 0 2.08 0
2013 2013 income
Fund B of
Phase 21
in 2013
None Zhong Yin
Ping
September Septembe Floating
BOC No WenShou 500 0 22.01 0
17, 2012 r 13, 2013 income
Yi (361
days)
None Zhong Yin
Ji Fu
September Septembe Floating
BOC No Zhuan 300 0 13.76 0
28, 2012 r 27, 2013 income
Xiang
(364 days)
None Zhong Yin
Ji Fu
October 31, October Floating
BOC No Zhuan 1,000 0 46 0
2012 31, 2013 income
Xiang
(365 days)
None Gong Yin
Li Cai
December July 12, Floating
ICBC No Gong Ying 200 0 5.06 0
12, 2012 2013 income
No. 3 (210
days)
24
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Amount of Actual
Amount of
actually amount of
Name of Related-party Amount of Remuneration impairment
Association Product retracted Anticipated profit and
entrusted transaction or entrusted Start date End date determination provision
relationship type principal in income loss in this
party not financing pattern withdrawn
current reporting
(if any)
period period
Total 144,363.04 -- -- -- 114,073.04 0 1,454.81 951.82
Source of entrusted financial funding Self-owned fund
Cumulative amount of principal and income
0
unclaimed overdue
Lawsuit involved (if applicable) Not applicable
Disclosure date of the public notice of the Board
March 27, 2012
of Directors on entrusted finance approval (if any)
Disclosure date of the public notice of the
meeting of shareholders on entrusted finance April 20, 2012
approval (if any)
3. Analysis of Major Subsidiaries and Share-holding Companies
List of major subsidiaries and share-holding companies
Unit: RMB Yuan
Total
Major products Registered Operating
Name Type Industry Total assets Net assets operating Net profit
or services capital profit
revenue
Operation
and
Wujiang Electronics management
Subsidiary 3,000,000.00 28,100,713.78 2,749,216.57 3,458,071.02 -116,818.91 -106,818.91
SEG market of specialized
electronics
market
Operation
and
Electronics management
Wuxi SEG Subsidiary 3,000,000.00 3,000,000.00 3,000,000.00 0.00 0.00 0.00
market of specialized
electronics
market
Operation
and
Electronics management
Shunde SEG Subsidiary 6,000,000.00 4,881,398.16 3,856,459.43 1,043,036.07 -1,454,844.62 -1,454,799.62
market of specialized
electronics
market
SEG
Subsidiary E-commerce E-commerce 48,000,000.00 12,096,067.03 9,867,029.61 210,938.39 -4,378,146.72 -3,354,093.87
E-Commerc
25
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Total
Major products Registered Operating
Name Type Industry Total assets Net assets operating Net profit
or services capital profit
revenue
e
SEG Small
Subsidiary Finance Small loan 150,000,000.00 167,996,213.28 158,248,137.10 13,459,859.52 8,049,254.67 6,036,940.99
Loan
Property
operation and
Property
SEG Baohua Subsidiary management 30,808,800.00 131,877,782.67 78,852,282.99 36,943,002.93 13,809,058.32 10,593,468.25
management
and hotel
business
Channeled
retail terminal
Electronic
of electronic
SEG product
Subsidiary products and 25,500,000.00 61,190,814.89 26,245,931.65 88,356,560.01 566,838.06 566,838.06
Industry channel
property
service
operation and
management
Operation
and
Electronics management
Xi'an SEG Subsidiary 3,000,000.00 39,689,692.26 8,602,953.89 17,301,044.95 5,229,212.99 3,906,150.46
market of specialized
electronics
market
Operation
and
Longgang Electronics management
Subsidiary 3,000,000.00 26,685,865.00 6,803,668.20 6,073,124.64 1,349,723.42 1,032,808.18
SEG market of specialized
electronics
market
Operation
and
Electronics management
Suzhou SEG Subsidiary 3,000,000.00 43,804,741.28 7,622,264.41 19,569,187.38 4,370,518.36 3,190,166.61
market of specialized
electronics
market
Operation
and
Changsha Electronics management
Subsidiary 35,000,000.00 81,975,050.64 52,563,036.52 10,422,473.36 2,437,643.99 2,203,317.33
SEG market of specialized
electronics
market
Operation
Xi'an
Electronics and
Hairong Subsidiary 3,000,000.00 18,705,392.94 1,552,992.61 7,451,071.50 334,093.03 419,693.03
market management
SEG
of specialized
26
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Total
Major products Registered Operating
Name Type Industry Total assets Net assets operating Net profit
or services capital profit
revenue
electronics
market
Operation
and
Nanjing Electronics management
Subsidiary 20,000,000.00 38,843,934.50 8,037,751.32 17,092,962.69 283,968.00 320,078.68
SEG market of specialized
electronics
market
Developmen
Development 30,000,000.00
Nantong t and
Subsidiary and operation 110,311,244.99 30,014,491.19 0.00 14,499.28 14,491.19
SEG operation of
of real estate
real estate
Operation
and
Nanning Electronics management
Subsidiary 8,000,000.00 6,552,002.98 7,507,861.64 0.00 -492,170.36 -492,138.36
SEG market of specialized
electronics
market
Manufacturi
Huakong Share-holding ng of
trade buisiness 896,671,464.00 847,419,828.52 215,283,163.26 421,860,123.13 -16,172,312.98 -17,723,758.99
SEG company electronic
components
Operation
and
Shanghai Share-holding Electronics management
5,000,000.00 59,971,456.17 17,687,965.36 18,381,928.44 2,691,183.87 2,018,387.906
SEG company market of specialized
electronics
market
SEG GPS
products
Share-holding Information manufacturing
SEG GPS 60,000,000.00 391,862,460.25 162,971,869.61 114,068,065.32 8,407,240.80 8,158,045.17
company industry and operation
network
service
Development
SEG New Share-holding Real Estate and
13,880,000.00 811,875,663.19 17,498,727.27 12,428,654.25 3,618,727.27 3,618,727.27
Urban company Industry construction of
real estate
VI. Forecasts of Operating Performance from January to September 2013
Warning and reasons for forecasts on loss of the accumulated net profit from the year beginning to the end of
next period or substantial year-on-year changes in net profit
27
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Applicable √ Not applicable
VII. Distribution of Profit in this reporting period
Implementation or adjustment of profit distribution plans in this reporting period, especially the plan for cash
dividend distribution and the plan for transfer of capital public reserve into share capital
Applicable √ Not applicable
The profit distribution plan deliberated and adopted in the 2012 General Meeting of Shareholders is that no profit
would be distributed or transferred.
VIII. Registration Form for Investigations, Communications and Interviews in this reporting
period
Type of
Reception Main content of discussion and the materials
Reception Time Reception Place Object Object
Means provided
received
Asked why the stock price of the Company did
not rise. The Company provided with its basic
January 14, 2013 At the Company Phone call Individual Investor
information and the already disclosed regular
reports.
Asked about information about SEG GPS
(12.5% equity held by the Company) and about
January 15, 2013 At the Company Phone call Individual Investor the main business of the Company. The
Company provided with the basic information of
SEG GPS and the Company.
Asked about the profit of the Company in 2012.
January 16, 2013 At the Company Phone call Individual Investor The Company provided with its Q3 report of
2012.
Asked about the area of self-owned housing
property of the Company. The Company
February 25, 2013 At the Company Phone call Individual Investor
provided with its basic information and the
already disclosed regular reports.
Asked about the GPS business and the main
business of the Company. The Company
provided with the basic information of SEG GPS
March 5, 2013 At the Company Phone call Individual Investor
(12.5% equity held by the Company), the basic
information of the Company and its regular
reports.
Asked about why the stock price of the
Company fell and whether major events occurred
March 12, 2013 At the Company Phone call Individual Investor
in the Company. The Company provided with
disclosed announcement.
Asked about the equity ratio of SEG GPS held
March 19, 2013 At the Company Phone call Individual Investor by the Company. The Company told that the
ratio was 12.5%.
28
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Type of
Reception Main content of discussion and the materials
Reception Time Reception Place Object Object
Means provided
received
Asked about the performance of the Company in
2012 and its profit distribution plans. The
Company did not provide with any material.
March 29, 2013 At the Company Phone call Individual Investor
Investors can refer to the 2012 Annual Report of
the Company disclosed on March 30, 2013 for
details.
Asked about the equity ratio of SEG GPS held
May 29, 2013 At the Company Phone call Individual Investor by the Company. The Company told that the
ratio was 12.5%.
Asked about the restricted stocks of the
May 31, 2013 At the Company Phone call Individual Investor Company. The Company provided with its 2012
Annual Report.
Asked about the date of the First Interim
Meeting of Shareholders of 2013 for the B-share
June 3, 2013 At the Company Phone call Others China Bond shareholders to register their equity rights. The
Company provided with the meeting
announcement.
Asked about (1) the number of shares of
Huakong SEG held by the Company and the
accounting method and (2) the profit increase
June 5, 2013 At the Company Phone call Individual Investor
points of the Company. The Company provided
with its 2012 Annual Report and Financial
Reports.
Asked about the date of disclosure of the 2013
June 25, 2013 At the Company Phone call Individual Investor Semi-Annual Report of the Company. The
Company did not provide with any material.
Asked about the investment of Shenzhen East
Gate SEG Electronics Market. The Company
June 26, 2013 At the Company Phone call Individual Investor explained that this electronics market is under
entrusted management and provided with its
2012 Annual Report.
29
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Chapter 5 Important Matters
I. Governance of the Company
1. In this reporting period, the Company constantly improved the governance structure and standardize company
operation in strict accordance with the Company Law of the People's Republic of China, the Securities Law of the
People's Republic of China, the Code of Corporate Governance for Listed Companies in China, the Articles of
Association and other laws and regulations on corporate governance of listed companies. But there were still issues as
follows:
(1) The controlling shareholder exercises the Property Right Representative Report System for management of
the Company. The Company's controlling shareholder SEG Group is a state-owned holding enterprise in
Shenzhen and Shenzhen State-owned Assets Supervision & Administration Bureau is the controlling shareholder
of SEG Group. It must implement the Property Right Representative Report System for state-owned assets
management according to the management methods of Shenzhen for state-owned assets.
(2) In respect of assessment on human resources, the Company's controlling shareholder SEG Group implements
the annual performance assessment on Senior Executives according to their fulfillment of annual operation
indicators and other indicators stipulated by SEG Group.
(3) The Company reports undisclosed information to the majority shareholder or the actual controller.
In accordance with the Property Right Representative Report System and the requirements of state statistic
department, the Company shall report undisclosed information to the majority shareholder or the actual
controller. In accordance with the requirements of state-owned assets supervision department, the Company has
been submitting monthly financial flash reports to its controlling shareholder and actual controller and reporting
important issues to its controlling shareholder and actual controller before they are disclosed. The Company
submits the Undisclosed Information Provided by Listed Companies for the Majority Shareholder or Actual
Controller and the Letter of Commitment to Shenzhen Securities Regulatory Bureau on October 18, 2007. SEG
Group offered the Letter of Commitment to Strengthening Management of Undisclosed Information to Shenzhen
Securities Regulatory Bureau. Meanwhile, the Company has established and implemented the Insider
Registration System of Shenzhen SEG Co., Ltd. and the Confidentiality System for Non-public Information of
Shenzhen SEG Co., Ltd. and has monthly reported to Shenzhen Securities Regulatory Bureau about its reports of
non-public information. Senior executives and all employees at the headquarters signed a Confidentiality
Agreement with the Company on July 15, 2009. The Confidentiality Agreement clearly stipulates that all
employees shall be obligated to hold confidential the business secrets and undisclosed information of the
Company.
The non-public information the Company offered to its majority shareholder and actual controller in this
reporting period is as follows:
Organization Relationship
Time or Procedure of
to which between the Procedure of
S/N. Type of information period of Basis for submission Check and
information is organization and submission
submission approval
submitted the Company
Controlling The flash report of The invested corporation The Notice on Matters about The Board of
1 SEG Group Monthly
shareholder main financial of the Company and the Preparation of Monthly Financial Directors
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Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Organization Relationship
Time or Procedure of
to which between the Procedure of
S/N. Type of information period of Basis for submission Check and
information is organization and submission
submission approval
submitted the Company
(30.24%) indicators of financial staff at the Flash Reports by Corporations agrees to
companies registered Headquarters prepare under Supervision and submit
in Shenzhen this Report and Administration of SASAC, the file
consolidate the of SASAC of the State Council
statements, which are (GUO ZI TING PING JIA [2003]
reviewed by the No. 23)
leadership of the
Financial Department
and submitted through
the State-owned Asset
Management
Information System.
The invested corporation
of the Company and the The Notice on Matters about
financial staff at the Preparation of Monthly Financial
Summary sheet of Headquarters prepare the Flash Reports by Corporations The Board of
Controlling
implementation of sheet and consolidate the under Supervision and Directors
2 SEG Group shareholder Monthly
monthly expense statements, which are Administration of SASAC, the file agrees to
(30.24%)
budget submitted through the of SASAC of the State Council submit
State-owned Asset (GUO ZI TING PING JIA [2003]
Management No. 23)
Information System.
The invested corporation
of the Company and the The Notice on Matters about
financial staff at the Preparation of Monthly Financial
Headquarters prepare the Flash Reports by Corporations The Board of
Controlling
Summary sheet of sheet and consolidate the under Supervision and Directors
3 SEG Group shareholder Monthly
monthly cash flow statements, which are Administration of SASAC, the file agrees to
(30.24%)
submitted through the of SASAC of the State Council submit
State-owned Asset (GUO ZI TING PING JIA [2003]
Management No. 23)
Information System.
The Notice on Matters about
The financial personnel
Preparation of Monthly Financial
at the Headquarters
Summary sheet of Flash Reports by Corporations The Board of
Controlling prepare the sheet that is
deposits and under Supervision and Directors
4 SEG Group shareholder submitted through the Quarterly
financing loans of the Administration of SASAC, the file agrees to
(30.24%) State-owned Asset
Headquarters of SASAC of the State Council submit
Management
(GUO ZI TING PING JIA [2003]
Information System.
No. 23)
Controlling Summary sheet of The invested corporation The Notice on Matters about The Board of
5 SEG Group shareholder quarterly of the Company and the Quarterly Preparation of Monthly Financial Directors
(30.24%) non-operating profit financial staff at the Flash Reports by Corporations agrees to
31
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Organization Relationship
Time or Procedure of
to which between the Procedure of
S/N. Type of information period of Basis for submission Check and
information is organization and submission
submission approval
submitted the Company
and loss of companies Headquarters prepare the under Supervision and submit
registered in sheet and consolidate the Administration of SASAC, the file
Shenzhen statements, which are of SASAC of the State Council
submitted through the (GUO ZI TING PING JIA [2003]
State-owned Asset No. 23)
Management
Information System.
It began to be submitted
since June 2009.
The invested corporation The Notice on Matters about
Summary sheet of of the Company and the Preparation of Monthly Financial
quarterly information financial staff at the Flash Reports by Corporations The Board of
Controlling
on investment Headquarters prepare the under Supervision and Directors
6 SEG Group shareholder Quarterly
properties of sheet and consolidate the Administration of SASAC, the file agrees to
(30.24%)
companies registered statements, which are of SASAC of the State Council submit
in Shenzhen submitted through the (GUO ZI TING PING JIA [2003]
State-owned Asset No. 23)
Management
Information System.
They shall be submitted
Monthly consolidated
every month after being
statements (including
printed, signed and
the Balance Sheet,
sealed and be submitted
the Profit Statement, The Board of
Controlling every quarter through The Notice of Shenzhen SEG Co.,
the Cash Flow Directors
7 SEG Group shareholder the State-owned Asset Monthly Ltd. on Submitting Monthly
Statement, the Notes agrees to
(30.24%) Management Statements
to Preparation of the submit
Information System.
Statements and the
They began to be
Financial Analysis
submitted on line from
Report)
July 2008.
Controlling Article Three of the Statistics Law
SEG Group shareholder of the People's Republic of China
(30.24%) specify that state organs, social
organizations, corporations,
Statistical statements
public institutions and privately or
or monthly and The Board of
individually owned businesses, on
annual reports of the Monthly and Directors
8 Sealed by the Company which statistical survey is
Shenzhen production of annually agrees to
Government implemented, must comply with
Statistics electronics submit
branch the Statistics Law and the
Bureau information industry
regulations of the state and
provide statistical data faithfully
but not make a false report,
conceal data, refuse to report,
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Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Organization Relationship
Time or Procedure of
to which between the Procedure of
S/N. Type of information period of Basis for submission Check and
information is organization and submission
submission approval
submitted the Company
delay this Report, or 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 Monthly Financial
Flash Reports by Corporations The Board of
Controlling Summary sheet of
under Supervision and Directors
9 SEG Group shareholder quarterly financial Sealed by the Company Quarterly
Administration of SASAC, the file agrees to
(30.24%) assets
of SASAC of the State Council submit
(GUO ZI TING PING JIA [2003]
No. 23)
The ledger of the first
The hard copy from the
100 shareholders
official website of The Board of
holding A-share and The requirements of 2013
Shenzhen Shenzhen Branch of Directors
10 Actual controller B-share in the end of Quarterly Shenzhen state-owned enterprise
SASAC China Securities agrees to
January, the end of capital operation conference
Depository and Clearing submit
February, and the end
Corporation Limited
of March 2013
2. To practically meet the requirements for insider trading prevention by CSRC and Shenzhen Securities
Regulatory Bureau, impel the Company, the holding subsidiaries, the controlling shareholder and its subsidiaries
to further comprehend relevant rules and regulations on securities, and urge the Company and the controlling
shareholder to raise their awareness to prevent insider trading, the Company carried out the "Theme Training for
Listed Companies on Insider Trading Prevention" in the conference room on the 11th floor of Shenzhen SEG
Square on May 7, 2013. The training targeted at the Company's all directors, supervisors, senior executives,
responsible persons of each department, and the personnel who can have access to the inside information
(personnel of finance, investment, administration and securities); directors, supervisors, senior executives,
responsible persons of each department and the personnel who can have access to the inside information of the
Company's controlling subsidiaries and controlling shareholder; and senior executives of the invested enterprises
subordinated to the controlling shareholder. A total of more than ten enterprises and over one hundred persons
were involved in this training. The Company invited Mr. Chen Jian, Head of the Supervisory Department of
Listed Companies of Shenzhen Securities Regulatory Bureau, to carry out the training, themed as "Fight Insider
Trading by Clear Awareness, Conscientious Avoidance, and Common Prevention". Mr. Chen Jian offered a
comprehensive, systematic and in-depth lesson in three aspects, including the legal provisions of insider trading
prevention and fighting, typical cases of insider trading, and common insider trading prevention practices. This
training enabled the trained personnel to deeply realize the hazard of insider trading, strengthen their awareness
of preventing inside trading, and correct several misunderstandings about insider trading, laying a solid
foundation for practicing the insider trading prevention.
33
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
3. The Company made progress in terms of internal control in this reporting period.
(1) In this reporting period, the Company carried out the 2012 internal control self-evaluation. The
Self-evaluation Report of Shenzhen SEG Co., Ltd. on the Internal Control in 2012 was disclosed on the Cninfo
Website on March 30, 2013, which was filed, deliberated and adopted at the 12th Meeting of the 5th Board of
Directors. The Company engaged Da Hua Certified Public Accountants (Special General Partnership) to conduct
the 2012 internal control audit. Da Hua issued the Audit Report of Shenzhen SEG Co., Ltd. on the Internal
Control numbered as Da Hua Nei Zi [2013] 000033. The report holds that the Company has maintained effective
internal control of financial reports in every major aspect in accordance with the Basic Standard for Enterprise
Internal Control and relevant rules and regulations on December 31, 2012. The Auditor’s Report was disclosed
on the Cninfo Website on March 30, 2013.
(2) In the second quarter of 2013, the Company inspected the internal control practice of Xi'an SEG, Xi'an
Hairong SEG, and SEG E-Commerce, established the internal control systems for Nantong SEG and Wujiang
SEG, and added risk points into the risk control matrix of the Headquarters.
II. Major Lawsuits and Arbitrations
√ Applicable Not applicable
Amount
Whether
involved
estimated Judgment result and Judgment Disclosure
Basic information of lawsuit and arbitration (RMB ten Progress Disclosure index
liabilities impact execution date
thousand
occurred
Yuan)
Guangzhou Jiajie Technology Co., Ltd.
(hereinafter referred to as Guangzhou
Jiajie) signed a SYBASE Purchase
Contract with SEG Industry, a subsidiary of Reports
the Company on June 25, 2010. Guangzhou disclosed on
The trial of second
Jiajie purchased the SYBASE software SEG Cninfo Website:
instance was the last August 16,
from SEG Industry and then sold the Industry 2011
instance. The 2011, March
software. Due to the difference of the won the trial Semi-Annual
judgment of the trial 27, 2012,
representation of payment terms in the of second Under Report, 2011
of first instance was August 27,
Purchase Contract separately held by SEG 305.26 No instance and enforcement Annual Report,
affirmed. 2012, March
Industry and Guangzhou Jiajie, the two the original procedure 2012
Enforcement 30, 2013,
parties had a dispute on the issue of judgment Semi-Annual
procedure has been April 24,
payment. The trial of second instance was was Report, 2012
started to recover the 2013
over. On May 20, 2013, Shenzhen affirmed. Annual Report,
payment for goods.
Municipal Intermediate People's Court and 2013 Q1
made the judgment of the trial of second Report
instance that SEG Industry won the trial
and the original judgment was affirmed.
The written judgment has come into force.
III. Matters Questioned by Media
Applicable √ Not applicable
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Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
There are no matters generally questioned by media in this reporting period.
IV. Transaction in Assets
1. Asset Acquisition
Ratio of net Relationship
Counterparty Influence
profit with
to Transaction Influence on on the
Acquired or contributed by Connected counterparty Disclosure
transaction price (RMB Progress the Company's Company's Disclosure
purchased the asset to the transaction to transaction date (Note
or final ten thousand (Note 2) operation profit and index
asset Company's or not (applicable to 5)
controlling Yuan) (Note 3) loss (Note
total net profit connected
party 4)
(%) transaction)
The Securities
20% equity of
Times, the
Shenzhen SEG
Securities
New Urban All involved
Daily, the
Construction asset
China
and property
Zhuhai Securities
Development rights were
Minghao No major No major January Journal, the
Co., Ltd. (the 277.6 assigned and 1.5 Yes None
Group Co., influence influence 31, 2013 Hong Kong
former all involved
Ltd. Commercial
Shenzhen Buji credits and
Daily, and the
Sanlian debts were
Cninfo
Industrial transferred.
Website
Development
(www.cninfo.
Co., Ltd.)
com.cn )
35
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
2. Asset Sales
Net profit
contributed by Ratio of net
Relationship
the asset to the profit
with Whether the
Transaction Company from Influence of contributed by Whether the
Pricing Connected counterparty to involved
Counterparty Asset to be price (RMB the period the sale on the the asset sale involved asset Disclosure
Date of sale principle for transaction or transaction credits and Disclosure index
to transaction sold ten thousand beginning to Company to the property rights date
asset sale not (applicable to debts are
Yuan) the date of sale (Note 3) Company's are assigned
connected transferred
(RMB ten total net profit
transaction)
thousand (%)
Yuan)
The Securities Times,
The 51%
the Securities Daily,
Ningbo equity of
the China Securities
Wenshang Ningbo SEG
No major Pricing to Journal, the Hong
Development Electronics April 18, 2013 255 0 3.57% No No Yes Yes April 20, 2013
influence market Kong Commercial
Management Market Co.,
Daily, and the Cninfo
Co., Ltd. Ltd. is held by
Website
the Company.
(www.cninfo.com.cn )
Because severe problem occurred in the capital chain of Ningbo Xingkai Trade Co., Ltd., as the partner of Ningbo SEG Digital Market Project, leading to the project
partner was unable to pay for the costs of decoration engineering of the project and the site decoration of the project had to be stopped. If the project kept on being
promoted in the mode of equity cooperation, the Company would assume great risk in investment. In consideration of the emergency, in order to protect the
Company’s capital from losing, the 13th interim meeting of the 5th Board of Directors deliberated and adopted the Proposal on Withdrawing Investment from Nngbo
SEG Digital Square Project. The Board of Directors of the Company decided terminating the mode of investment cooperation and stopping the relevant work of
establishing Ningbo SEG Digital Square Project through investment. Through communicating and negotiating for many times with the creditor of Ningbo Xingkai,
i.e. Ningbo Wenshang Investment Management Co., Ltd. (hereinafter referred to as Ningbo Wenshang), Ningbo Wenshang agreed that the Company withdraws the
36
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
investment in establishing Ningbo SEG Digital Square Project, and also agreed to accept the 51% equity of Ningbo SEG Digital Market Management Co., Ltd. held
by the Company, and at the same time the cooperation mode changes to that of entrusted management, i.e. Ningbo Digital Square will be managed by the Company.
Now the Company has already taken back the contribution of capital and the entrusted management fee of the project. Therefore, terminating the above-mentioned
investment would not influence the current profit and loss of the Company and the shareholders’ equity.
Please refer for details to the Public Notice on Terminating Ningbo SEG Electronics Market Project and Withdrawing Investment in Ningbo Digital Square Project of
Shenzhen SEG Co., Ltd. and the Public Notice on Resolution of the 32nd Interim Meeting of the 5th Board of Directors of Shenzhen SEG Co., Ltd. disclosed in the
above designated media for information disclosure on April 20, 2013.
37
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
V. Major Related-Party Transactions
1. Related-Party Transactions Concerning Routine Operation
Proportion
Available
Amount in the
market
Related Pricing (RMB ten amount of Method of Disclosure Disclosure
Relationship Type Content Price price of
party principle thousand similar settlement date index
similar
Yuan) transactions
transactions
(%)
The
Securities
Times, the
Securities
Daily, the
As per the China
Shenzhen agreement Securities
Controlling Property Property Pricing to March 30,
SEG Group -- 28.73 0.14% of -- Journal, the
shareholder lease lease market 2013
Co., Ltd. agreement Hong Kong
and contract Commercial
Daily, and
the Cninfo
Website
(www.cninf
o.com.cn )
Total -- -- 28.73 -- -- -- -- --
Details about return of wholesale goods None
The actual implementation of related-party
transactions concerning routine operation in this The business is the ongoing business in the Company's routine operation and is proceeding as scheduled
reporting period (if any), whose aggregate amounts in this reporting period.
have been estimated as per category.
Reason for great difference between the transaction
Not applicable
price and market price (if applicable)
38
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
2. Major Related-Party Transactions from Joint External Investment
Total assets
Net assets of Net profit of
of the
Main Registered the invested the invested
Joint invested
Pricing Invested business of capital of the enterprise enterprise
investment Relationship enterprise
principle enterprise the invested invested (RMB ten (RMB ten
party (RMB ten
enterprise enterprise thousand thousand
thousand
Yuan) Yuan)
Yuan)
Shenzhen
Determined
SEG New
Subsidiary of by Development
Urban
SEG Real the negotiation, and RMB 13.88
Construction 81,187.57 1749.87 361.87
Estate controlling and based on construction million
and
shareholder the value of real estate
Development
net assets
Co., Ltd.
The progress of major
projects under construction
During the processing
of the invested enterprise (if
any)
3. Related-Party Credits and Debts
Are there non-operating related-party credits and debts?
Yes √ No
Amount
Whether
Beginning incurred in Ending
non-operating
Forming balance (RMB this reporting balance (RMB
Related party Relationship Type capital
Cause ten thousand period (RMB ten thousand
occupation
Yuan) ten thousand Yuan)
exists
Yuan)
Receivable
Shenzhen SEG Subsidiary of
creditor’s
Property Management the controlling Deposit No 0.2 0 0.2
right of
Co., Ltd. shareholder
related party
Receivable
Shenzhen SEG Group Controlling creditor’s Deposit for
No 8.6 1.17 9.77
Co., Ltd. shareholder right of property lease
related party
Influence of related-party credits and
debts on the Company's operating Little
performance and financial conditions
39
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
VI. Important Contracts and Their Execution
1. Guarantees
Unit: RMB ten thousand Yuan
External guarantees of the Company (excluding guarantees for subsidiaries)
Disclosure date Whether
Date of actual
of Actual Whether the guarantee
Name of the Guarantee occurrence Type of Term of
announcement guarantee performance for related
guaranteed amount (Date of signing guarantee guarantee
on the guarantee amount is completed party (Yes
agreement)
amount or no)
N/A
Total external guarantee amount Total actual external
approved in this reporting period 0 guarantee amount in this 0
(A1) reporting period (A2)
Total balance of actual
Total external guarantee amount
external guarantee amount
approved by the end of this 0 0
by the end of this reporting
reporting period (A3)
period (A4)
Guarantees for subsidiaries
Disclosure date Whether
Date of actual
of Actual Whether the guarantee
Name of the Guarantee occurrence Type of Term of
announcement guarantee performance for related
guaranteed amount (Date of signing guarantee guarantee
on the guarantee amount is completed party (Yes
agreement)
amount or no)
Guarantee of
SEG Small
March 2, 2013 7,500 0 joint and 2 years No No
Loan
several liability
Guarantee of
SEG Small
June 14, 2013 3,000 joint and 2 years No No
Loan
several liability
Total guarantee amount for Total actual guarantee
subsidiaries approved in this 10,500 amount for subsidiaries in 4000
reporting period (B1) this reporting period (B2)
Total balance of actual
Total guarantee amount for
guarantee amount for
subsidiaries approved by the end 10,500 0
subsidiaries by the end of
of this reporting period (B3)
this reporting period (B4)
Total guarantee amount (the sum of the two major items above)
Total actual guarantee
Total guarantee amount approved
10,500 amount in this reporting 4000
in this reporting period (A1+B1)
period (A2+B2)
Total guarantee amount approved Total balance of actual
by the end of this reporting period 10,500 guarantee amount by the 0
(A3+B3) end of this reporting period
40
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
(A4+B4)
Including:
Guarantee amount for shareholder, actual controller and other
0
related parties (C)
Debt guarantee directly or indirectly for the guaranteed whose
0
asset-liability ratio exceeds 70% (D)
Total amount of the part exceeding 50% of net assets (E) 0
Total of the aforementioned three items (C+D+E) 0
Description for possible joint and several liability of repayment
Not applicable
within the guarantee undue (if any)
Description for external guarantee violating due process (if any) Not applicable
Specific description for combined guarantee: By the resolution of the 30th Interim Meeting of the 5th Board of
Directors, the Company agrees to provide guarantee to the controlled subsidiary SEG Small Loan for the line of
credit of RMB 75 million Yuan in BOC Shenzhen Dongmen Sub-branch. In addition, By the resolution of the
36th Interim Meeting of the 5th Board of Directors, the Company agrees to provide guarantee to the controlled
subsidiary SEG Small Loan for the line of credit of RMB 30 million Yuan in Beijing Bank Shenzhen Branch.
VII. Commitments Which Were Made by the Company or the Shareholders Holding Over
5% Shares, and Were Made in This Reporting Period, or in the Previous Period but Lasted
into This Reporting Period
Time of Commitment
Commitments Made by Content Fulfillment
making term
Commitment for share reform Not applicable
Commitments in the Acquisition
Report and this Report of Not applicable
Changes in Equity
Commitments made at
Not applicable
restructuring of major assets
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 Commitments
Commitment made at initial Company and its subsidiaries were fulfilled in
SEG Group July 1, 1996 Not applicable
public offerings or refinancing and associated companies this reporting
could use the eight trademarks period.
registered by SEG Group at
the National Trademark
Bureau; that the Company
could use the aforesaid
trademarks or similar signs as
41
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Time of Commitment
Commitments Made by Content Fulfillment
making term
the Company's logo and use
the trademarks and signs
during its operation; and that
the Company does not need to
pay any fee to SEG Group for
using the aforesaid trademarks
or signs.
Other commitments made to the
medium and small shareholders Not applicable
of the Company
Whether commitments were
Yes
fulfilled on time
VIII. Engagement and Dismissal of the Accounting Firm
Is the semi-annual financial report audited?
Yes √ No
IX. Notes on Other Important Matters
1. The 28th Meeting of the 5th Board of Directors deliberated and adopted the Proposal on Establishment of
Nantong SEG Times Square Development Co., Ltd. The Company invested RMB 30 million as the registration
capital fund to establish Nantong SEG Times Square Development Co., Ltd. in sole proprietorship. This event
can be referred to in the Public Notice of Shenzhen SEG Co., Ltd. on the Investment and Establishment of
Nantong SEG Times Square Development Co., Ltd. and the Public Notice on the Resolutions of the 28th Interim
Meeting of the 5th Board of Directors of Shenzhen SEG Co., Ltd. disclosed in the Securities Times, the Securities
Daily, the China Securities Journal, the Hong Kong Commercial Daily and the Cninfo Website
(www.cninfo.com.cn ) on January 10, 2013.
2. The Company and SEG Real Estate, the holding subsidiary of the Company's controlling shareholder SEG
Group, jointly invested RMB 10 million in purchasing 72.0461% equity of Shenzhen SEG New Urban
Construction and Development Co., Ltd. (the former Shenzhen Buji Sanlian Industrial Development Co., Ltd.)
held by Zhuhai Minghao Group Co., Ltd., among which the Company invested RMB 2.776 million with the
proportion of 20% equity and SEG Industry invested RMB 7.224 million with that of 52.0461% equity. This
event can be referred to in the Public Notice of Shenzhen SEG Co., Ltd. on the Related Party Transaction
Between the Company and Shenzhen SEG Real Estate Investment Co., Ltd. to Jointly Purchase Shenzhen Buji
Sanlian Industrial Development Co., Ltd. and the Public Notice on the Resolutions of the 29th Interim Meeting of
the 5th Board of Directors of Shenzhen SEG Co., Ltd. disclosed on the aforementioned media on January 31,
2013.
3. The Company, by way of listing and competitive bids, acquired the use rights of state-owned construction
land parcel (No. C13001) which is located in Nantong and openly traded by Nantong National Bureau of Land
Resources on February 6, 2013 with a total price of RMB 80.2545 million. This event can be referred to in the
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Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Public Notice of Shenzhen SEG Co., Ltd. on Acquiring the Land Use Rights disclosed on the aforementioned
media on February 8, 2013.
4. Considering that the term of the 5th Board of Supervisors fell due within this reporting period, the Company
convened the 2nd Meeting of the 4th Session of Union Representatives on May 24, 2013, at which Mr. Tian
Jiliang and Mr. Ying Huadong were elected to be the workers’ representative supervisors of the 6th Board of
Supervisors in accordance with the Company Law of the People's Republic of China, the Articles of Association,
and the Rules of Procedure of the Board of Supervisors of Shenzhen SEG Co., Ltd. This event can be referred to
in the Public Notice of Shenzhen SEG Co., Ltd. on Electing the Worker Representative Supervisors of the 6th
Board of Supervisors disclosed on the aforementioned media on May 28, 2013.
5. The 31st Interim Meeting of the 5th Board of Directors deliberated and adopted the Proposal on Investment in
Launching the Nanning SEG Digital Square Project. The Company invested RMB 8 million as the registration
capital fund to establish Nanning SEG Digital Square Management Co., Ltd. in sole proprietorship and rented
the podium building of 1st and 2nd floors aboveground of Nanning Zhidi Plaza owned by Nanning Haiqi Real
Estate Development Co., Ltd. as the business locale for Nanning SEG Digital Square. This event can be referred
to in the Public Notice of Shenzhen SEG Co., Ltd. on Investment in Launching the Nanjing SEG Digital Square
Project and the Public Notice on the Resolutions of the 31st Interim Meeting of the 5th Board of Directors of
Shenzhen SEG Co., Ltd. disclosed on the aforementioned media on March 8, 2013.
6. The 12th Meeting of the 5th Board of Directors and the 18th (2012) General Meeting of Shareholders
deliberated and adopted the Proposal on Providing a Loan of RMB 300 Million for the Company's
Wholly-Owned Subsidiary Nantong SEG Times Square Co., Ltd. to Construct the Nantong SEG Times Square
Project. This event can be referred to in the Public Notice on the Resolutions of the 12th Meeting of the 5th
Board of Directors of Shenzhen SEG Co., Ltd. and the Public Notice on the Resolutions of the 18th (2012)
General Meeting of Shareholders of Shenzhen SEG Co., Ltd. disclosed on the aforementioned media respectively
on March 30, 2013 and April 20, 2013.
7. The 32nd Interim Meeting of the 5th Board of Directors deliberated and adopted the Proposal on Terminating
the Ningbo SEG Electronics Market Project and the Proposal on Withdrawing the Investment in the Ningbo SEG
Digital Square Project. This event can be referred to in the Public Notice of Shenzhen SEG Co., Ltd. on
Terminating the Ningbo Electronics Market Project and Withdrawing the Investment in the Ningbo Digital
Square Project and the Public Notice on the Resolutions of the 32nd Interim Meeting of the 5th Board of
Directors of Shenzhen SEG Co., Ltd. disclosed on the aforementioned media on April 20, 2013.
8. The 32nd Interim Meeting of the 5th Board of Directors deliberated and adopted the Proposal of Shenzhen
SEG Co., Ltd. on Providing a Current Fund Loan of RMB 32 Million for Shenzhen SEG Industry Investment Co.,
Ltd. This event can be referred to in the Public Notice on the Resolutions of the 32nd Interim Meeting of the 5th
Board of Directors of Shenzhen SEG Co., Ltd. disclosed on the aforementioned media on April 20, 2013.
9. The 35th Interim Meeting of the 5th Board of Directors deliberated and adopted the Proposal on the First
Phase of 2013 Short-term Financing Bonds Offering Plan. This event can be referred to in the Public Notice on
the Resolutions of the 35th Interim Meeting of the 5th Board of Directors of Shenzhen SEG Co., Ltd. disclosed
on the aforementioned media on June 1, 2013.
10. The members of the 6th Board of Directors and the 6th Board of Supervisors were elected at the 1st Interim
General Meeting of Shareholders of 2013. This event can be referred to in the Public Notice on the Resolutions
43
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
of the 1st Interim General Meeting of Shareholders in 2013 of Shenzhen SEG Co., Ltd. disclosed on the
aforementioned media on June 18, 2013.
11. At the 1st Meeting of the 6th Board of Directors, Director Wang Li was elected to be President of the 6th
Board of Directors; Liu Zhijun was appointed as General Manager of the Company and Chief Financial Officer;
and Zheng Dan and Zhu Longqing were appointed as Vice General Managers of the Company. This event can be
referred to in the Public Notice on the Resolutions of the 1st Meeting of the 6th Board of Directors of Shenzhen
SEG Co., Ltd. disclosed on the aforementioned media on June 18, 2013.
12. At the 1st Meeting of the 6th Board of Supervisors, Director Zhao Xingxue was elected to be Chairman of
the 6th Board of Supervisors. This event can be referred to in the Public Notice on the Resolutions of the 1st
Meeting of the 6th Board of Supervisors of Shenzhen SEG Co., Ltd. disclosed on the aforementioned media on
June 18, 2013.
13. On October 25, 2012, the 25th Interim Meeting of the 5th Board of Directors deliberated and adopted the
Proposal on Providing a Renewal Loan of RMB 18 Million for Changsha SEG Development Co., Ltd., the term
being one (1) year (from September 25, 2012 to September 24, 2013) and the interest rate being 6% (bank loan
interest rate over the same period), for which Changsha Xinxing Grand Hotel owned by Changsha SEG was used
as collateral to the Company. By the end of this reporting period, Changsha SEG has repaid the principal of
RMB 8 million and still owed the Company RMB 10 million.
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Chapter 6 Changes in Shares and Information on Shareholders
I. Changes in Shares
Before this change Increase/decrease by (+) After this change
Capitalization
Proportion New share Bonus Proportion
Quantity of public Others Subtotal Quantity
(%) offering share (%)
reserve
I. Restricted shares 35,464 0% 0 0 0 0 0 35,464 0%
1. State-owned shares 0 0% 0 0 0 0 0 0 0%
2. State-owned legal
0 0% 0 0 0 0 0 0 0%
person's shares
3. Other shares held by
0 0% 0 0 0 0 0 0 0%
domestic capital
Including: Shares held
by overseas legal 0 0% 0 0 0 0 0 0 0%
persons
Shares held by
domestic natural 0 0% 0 0 0 0 0 0 0%
persons
4. Shares held by
0 0% 0 0 0 0 0 0 0%
foreign capital
Including: Shares held
by overseas legal 0 0% 0 0 0 0 0 0 0%
persons
Shares held by
foreign natural 0 0% 0 0 0 0 0 0 0%
persons
5. Senior executives'
35,464 0% 0 0 0 0 0 35,464 0%
shares
II. Unrestricted shares 784,763,546 100% 0 0 0 0 0 784,763,546 100%
1. RMB ordinary shares 538,302,228 68.59% 0 0 0 0 0 538,302,228 68.59%
2. Domestically listed
246,461,318 31.4% 0 0 0 0 0 246,461,318 31.4%
foreign shares
3. Overseas listed
0 0% 0 0 0 0 0 0 0%
foreign shares
4. Others 0 0% 0 0 0 0 0 0 0%
III. Total shares 784,799,010 100% 0 0 0 0 0 784,799,010 100%
Reasons for change
Applicable √ Not applicable
Approval of changes in shares
45
Full Text of 2013 Semi-Annual Report of Shenzhen SEG Co., Ltd.
Applicable √ Not applicable
Share transfer
Applicable √ Not applicable
Impact of changes in shares on such financial indicators as basic earnings per share and diluted earnings per
share, and net asset per share attributable to common shareholders of the Company in the last year and last
reporting period
Applicable √ Not applicable
Other contents as deemed necessary by the Company or required by the securities regulatory authority to be
disclosed
√ Applicable Not applicable
Mr. Jiang Yigang, the Independent Director of the 5th Board of Directors, left his office on June 17, 2013. Mr.
Jiang Yigang holds 11,700 A-shares of the Company. In accordance with relevant provisions, the shares held by
Mr. Jiang can be released from the tradability restriction in six months after he left the post. By the end of this
reporting period, 8,775 shares of the shares held by Mr. Jiang Yigang have remained to be restricted for senior
executives.
Changes in the sum of shares, structure of shareholders, and structure of assets and liabilities of the Company
Applicable √ Not applicable
II. Information on the Number of Shareholders and Their Shareholding Status
Unit: Share
Total number of shareholders by
64,423
the end of this reporting period
Shareholders holding more than 5% shares of the Company
Share Pledged or frozen shares
Quantity
Shares held increase or
of Quantity of
Name of Nature of Share-holding by the end decrease in
restricted unrestricted
shareholder shareholder proportion (%) of reporting this Share status Quantity
shares shares held
period reporting
held
period
Shenzhen SEG State-owned
30.24% 237,359,666 0 0 237,359,666 Pledged 83,679,833
Group Co., Ltd. legal person
Ping An Trust
Co., Ltd.-Ruifu Others 2.41% 18,880,300 0 0 18,880,300
No. 2
Overseas
Gong Qianhua 0.68% 5,311,520 0 0 5,311,520
natural person
Domestic
Zeng Ying 0.66% 5,160,887 0 0 5,160,887
natural person
Wen Domestic
0.37% 2,956,099 +2,956,099 0 2,956,0999
Xitang(China non-state-owne
46
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Merchants d legal person
Securities Co.,
Ltd. Customer
Credit
Transactions
Backed Securities
Account)
Overseas legal
NORGES BANK 0.24% 1,890,226 0 0 1,890,226
person
Taifook
Securities
Overseas legal
Company 0.24% 1,887,437 -6,077,647 0 1,887,437
person
Limited-Account
Client
Zhongrong
International
Trust Co., Others 0.24% 1,858,208 +489,408 0 1,858,208
Ltd.-Ruihua No.
3
Domestic
Feng Wuchu 0.22% 1,764,500 +1,764,500 0 1,764,500
natural person
GUOTAI
JUNAN
Overseas legal
SECURITIES 0.2% 1,557,042 -2,122,079 0 1,557,042
person
(HONGKONG)
LIMITED
Strategic investors or general legal
entities who become one of the
top ten shareholders by Not applicable
participating in rights issue (if
any) (See note 3)
Explanations on the association Shenzhen SEG Group Co., Ltd. has no associated relationship with other shareholders, nor is it
relationship or concerted action a concerted action unit as described by the Management Methods for Disclosure of Information
among the above-mentioned on Changes of Shareholding Status of Shareholders of Listed Companies. It is unknown whether
shareholders other shareholders have an associated relationship among them or are concerted action units.
Information on top ten shareholders of unrestricted shares
Unrestricted shares held at the end of this reporting Type of share
Name of shareholder
period Type Quantity
Shenzhen SEG Group Co., Ltd. 237,359,666 RMB ordinary shares 237,359,666
Ping An Trust Co., Ltd.-Ruifu No.
18,880,300 RMB ordinary shares 18,880,300
2
Domestically listed
Gong Qianhua 5,311,520 5,311,520
foreign shares
Domestically listed
Zeng Ying 5,160,887 5,160,887
foreign shares
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Wen Xitang(China Merchants
Securities Co., Ltd. Customer
2,956,099 RMB ordinary shares 2,956,099
Credit Transactions Backed
Securities Account)
Domestically listed
NORGES BANK 1,890,226 1,890,226
foreign shares
Taifook Securities Company Domestically listed
1,887,437 1,887,437
Limited-Account Client foreign shares
Zhongrong International Trust
1,858,208 RMB ordinary shares 1,858,208
Co., Ltd.-Ruihua No. 3
Domestically listed
Feng Wuchu 1,764,500 1,764,500
foreign shares
GUOTAI JUNAN SECURITIES Domestically listed
1,557,042 1,557,042
(HONGKONG) LIMITED foreign shares
Explanations on the association
relationship or concerted action
Shenzhen SEG Group Co., Ltd. has no associated relationship with other shareholders, nor is it
among the top ten shareholders of
a concerted action unit as described by the Management Methods for Disclosure of Information
unrestricted shares, and between
on Changes of Shareholding Status of Shareholders of Listed Companies. It is unknown whether
the top ten shareholders of
other shareholders have an associated relationship among them or are concerted action units.
unrestricted shares and the top ten
shareholders
Shareholders involved in
securities financing (if any) (see Not applicable
note 4)
Did the shareholders of the Company agree on repurchase transactions in this reporting period?
Yes √ No
III. Changes in Controlling Shareholder or Actual Controller
Changes in controlling shareholder in this reporting period
Applicable √ Not applicable
Changes in actual controller in this reporting period
Applicable √ Not applicable
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Chapter 7 Information on Directors, Supervisors and Senior
Executives
I. Changes in Shares Held by Directors, Supervisors and Senior Executives
√ Applicable Not applicable
The number The number
Increase of Decrease of The number
of restricted of restricted
Shares held shares held shares held of restricted
Shares held shares shares
Employment at period in the in the shares
Name Title at period granted at granted in
status beginning current current granted at
end (share) period the current
(share) period period period end
beginning period
(share) (share) (share)
(share) (share)
Wang Li Chairman Incumbent 0 0 0 0 0 0 0
Zhang
Director Incumbent 0 0 0 0 0 0 0
Guangliu
Ye Jun Director Incumbent 0 0 0 0 0 0 0
Director/Gen
eral
Liu
Manager/Chi Incumbent 0 0 0 0 0 0 0
Zhijun
ef Financial
Officer
Director/Vice
General
Zheng Manager/Sec
Incumbent 35,586 0 0 35,586 0 0 0
Dan retary of the
Board of
Directors
Director/Vice
Zhu
General Incumbent 0 0 0 0 0 0 0
Longqing
Manager
Jiang Independent
Left the post 11,700 0 0 11,700 0 0 0
Yigang Director
Yang Independent
Left the post 0 0 0 0 0 0 0
Rusheng Director
Zhou Independent
Incumbent 0 0 0 0 0 0 0
Hanjun Director
Chairman of
Zhao
the Board of Incumbent 0 0 0 0 0 0 0
Xingxue
Supervisors
Tang
Supervisor Incumbent 0 0 0 0 0 0 0
Chongyin
Xu Supervisor Left the post 0 0 0 0 0 0 0
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The number The number
Increase of Decrease of The number
of restricted of restricted
Shares held shares held shares held of restricted
Shares held shares shares
Employment at period in the in the shares
Name Title at period granted at granted in
status beginning current current granted at
end (share) period the current
(share) period period period end
beginning period
(share) (share) (share)
(share) (share)
Haisong
Tian
Supervisor Incumbent 0 0 0 0 0 0 0
Jiliang
Ying
Supervisor Incumbent 0 0 0 0 0 0 0
Huadong
Vice General
Li Lifu Left the post 0 0 0 0 0 0 0
Manager
Independent
Li Luoli Incumbent 0 0 0 0 0 0 0
Director
Song Independent
Incumbent 0 0 0 0 0 0 0
Pingping Director
Peng
Supervisor Incumbent 0 0 0 0 0 0 0
Aiyun
Total -- -- 47,286 0 0 47,286 0 0 0
II. Departure and Dismissal of Directors, Supervisors and Senior Executives
Name Title Type Date Reason
Vice General
Li Lifu Manager/Chief Left the office May 13, 2013 Job changed.
Financial Officer
Independent Left the post
Jiang Yigang June 17, 2013 Expiration of the term of office
Director upon expiration
Independent Left the post
Yang Rusheng June 17, 2013 Expiration of the term of office
Director upon expiration
Left the post
Xu Haisong Supervisor June 17, 2013 Expiration of the term of office
upon expiration
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Chapter 8 Financial Reports
I. Auditor's Report
Is the Semi-Annual Report audited?
Yes √ No
The Semi-Annual Report of the Company has not been audited.
II. Financial Statements
The monetary unit used in the Notes to Financial Statements is RMB Yuan.
1. Consolidated Balance Sheet
Prepared by: Shenzhen SEG Co., Ltd.
Unit: RMB Yuan
Item Ending balance Beginning balance
Current assets:
Monetary capital 421,888,702.77 453,132,467.18
Deposit reservation for balance 0.00 0.00
Loans to banks and other financial institutions 0.00 0.00
Transaction financial assets 0.00 0.00
Notes receivable 0.00 200,000.00
Accounts receivable 20,469,376.74 10,742,406.91
Advances 34,400,954.55 37,983,011.33
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 0.00
Other accounts receivable 27,153,862.59 18,231,238.23
Redemptory financial assets for sale 0.00 0.00
Inventory 89,399,683.88 2,715,123.54
Non-current assets due within one year 0.00 0.00
Other current assets 282,900,000.00 346,200,402.78
Total current assets 876,212,580.53 869,204,649.97
Non-current assets:
Entrusted loans and advances issued 163,790,623.69 135,557,219.04
Financial assets available for sale 422,960.51 651,735.42
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Item Ending balance Beginning balance
Held-to-maturity investment 0.00 0.00
Long-term accounts receivable 0.00 0.00
Long-term equity investments 153,331,777.10 133,105,415.67
Investment properties 490,841,174.60 500,164,867.01
Fixed assets 43,570,750.99 43,166,491.52
Construction in progress 973,898.44 185,086.00
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 869,594.06 453,282.22
Development expenses 0.00 0.00
Goodwill 10,328,927.82 10,328,927.82
Long-term expenses to be apportioned 36,820,783.07 38,101,188.50
Deferred income tax assets 9,778,422.03 9,778,422.03
Other non-current assets 0.00 0.00
Total non-current assets 910,728,912.31 871,492,635.23
Total assets 1,786,941,492.84 1,740,697,285.20
Current liabilities:
Short-term loans 0.00
Loans from the Central Bank 0.00
Deposits attracted and accounts due to banks
0.00
and other financial institutions
Loans from banks and other financial
0.00
institutions
Transaction financial liabilities 0.00
Notes payable 0.00
Accounts payable 2,332,035.90 4,011,377.73
Advances from customers 164,380,996.11 172,415,368.88
Financial assets sold for repurchase 0.00 0.00
Commissions payable 0.00 0.00
Wages payable 5,742,319.67 10,656,207.14
Taxes payable 21,860,512.60 15,226,223.73
Interest payable 0.00 0.00
Dividends payable 2,012,925.62 1,274,816.18
Other accounts payable 160,479,236.91 142,725,201.77
Reinsurance accounts payable 0.00 0.00
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Item Ending balance Beginning balance
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 one year 0.00 0.00
Other current liabilities 0.00
Total current liabilities 356,808,026.81 346,309,195.43
Non-current liabilities:
Long-term loans 0.00
Bonds payable 0.00
Long-term accounts payable 0.00
Special accounts payable 0.00
Estimated liabilities 2,361,610.00
Deferred income tax liabilities 18,716,012.15 19,327,668.80
Other non-current liabilities 791,163.55 320,080.91
Total non-current liabilities 19,507,175.70 22,009,359.71
Total liabilities 376,315,202.51 368,318,555.14
Owners' equity (or shareholders' equity):
Paid-up capital (or share capital) 784,799,010.00 784,799,010.00
Capital public reserve 404,266,091.82 404,380,330.57
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 -56,745,163.71 -96,419,229.99
Translation difference of the financial
0.00 0.00
statements in foreign currency
Total owners' equity attributable to the parent
1,235,232,773.78 1,195,672,946.25
company
Minority shareholders' equity 175,393,516.55 176,705,783.81
Total owners' equity (or shareholders' equity): 1,410,626,290.33 1,372,378,730.06
Total liabilities and owner's equity (or
1,786,941,492.84 1,740,697,285.20
shareholders' equity)
Legal representative: Wang Li Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong
2. Balance Sheet of the Parent Company
Prepared by: Shenzhen SEG Co., Ltd.
Unit: RMB Yuan
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Item Ending balance Beginning balance
Current assets:
Monetary capital 272,164,192.77 296,491,241.42
Transaction financial assets
Notes receivable
Accounts receivable 720,000.00 320,000.00
Advances 406,984.00 2,761,960.00
Interest receivable
Dividends receivable 8,205,120.00
Other accounts receivable 139,224,114.92 48,967,222.37
Inventory
Non-current assets due within one year
Other current assets 200,000,000.00 292,380,000.00
Total current assets 620,720,411.69 640,920,423.79
Non-current assets:
Financial assets available for sale
Held-to-maturity investment
Long-term accounts receivable
Long-term equity investments 415,035,303.34 356,808,941.91
Investment properties 310,983,738.73 316,236,256.69
Fixed assets 20,481,232.13 21,005,561.80
Construction in progress
Engineering materials
Disposal of fixed assets
Productive biological assets
Oil & gas assets
Intangible assets 503,941.28 207,404.28
Development expenses
Goodwill
Long-term expenses to be apportioned 2,823,856.08 2,868,032.83
Deferred income tax assets 6,662,451.67 7,299,951.67
Other non-current assets
Total non-current assets 756,490,523.23 704,426,149.18
Total assets 1,377,210,934.92 1,345,346,572.97
Current liabilities:
Short-term loans
Transaction financial liabilities
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Item Ending balance Beginning balance
Notes payable
Accounts payable 350,000.00
Advances from customers 49,510,008.21 76,224,535.77
Wages payable 84,942.41 4,373,229.79
Taxes payable 16,962,838.07 11,859,380.06
Interest payable
Dividends payable 119,803.29 119,803.29
Other accounts payable 80,166,203.89 65,167,926.86
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 146,843,795.87 158,094,875.77
Non-current liabilities:
Long-term loans
Bonds payable
Long-term accounts payable
Special accounts payable
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 146,843,795.87 158,094,875.77
Owners' equity (or shareholders' equity):
Paid-up capital (or share capital) 784,799,010.00 784,799,010.00
Capital public reserve 405,652,893.32 405,652,893.32
Less: treasury shares
Special reserve
Surplus public reserve 102,912,835.67 102,912,835.67
General risk provision
Retained profits -62,997,599.94 -106,113,041.79
Translation difference of the financial
statements in foreign currency
Total owners' equity (or shareholders' equity): 1,230,367,139.05 1,187,251,697.20
Total liabilities and owner's equity (or
1,377,210,934.92 1,345,346,572.97
shareholders' equity)
Legal representative: Wang Li Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong
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3. Consolidated Profit Statement
Prepared by: Shenzhen SEG Co., Ltd.
Unit: RMB Yuan
Item Amount of the current period Amount of the previous period
1. Total operating revenue 292,942,040.76 241,988,628.19
Including: operating revenue 279,848,108.59 235,045,756.04
Interest income 13,093,932.17 6,942,872.15
Earned premiums
Commissions income
2. Total operating cost 237,597,954.70 201,083,552.54
Including: operating cost 212,671,918.66 175,042,563.79
Interest expenses
Commissions
Surrender value
Net compensation pay-outs
Net insurance deposit accrued
Insurance dividends
Reinsurance expenses
Operating tax and surcharges 11,497,251.64 9,794,018.20
Sales expenses 1,290,509.28 533,710.91
Management expenses 17,031,998.58 20,248,784.19
Financial expenses -5,163,964.97 -5,185,253.01
Loss from asset impairment 270,241.51 649,728.46
Plus: income from change of fair value (Loss is
marked with "-")
Income from investment (Loss is marked
8,694,554.98 7,854,150.20
with "-")
Including: income from investment in joint
-2,549,638.57 117,154.53
ventures and associated enterprises
Income from exchange (Loss is marked with
"-")
3. Operating profit (Loss is marked with "-") 64,038,641.04 48,759,225.85
Plus: non-operating revenue 1,501,958.68 1,774,861.10
Less: non-operating expenses 14,743.04 45,187.76
Including: loss from disposal of non-current
4,864.51 4,034.65
assets
4. Total profit (Total loss is marked with "-") 65,525,856.68 50,488,899.19
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Less: income tax 17,245,618.33 12,570,269.04
5. Net profit (Net loss is marked with "-") 48,280,238.35 37,918,630.15
Including: net profit of the purchased party
realized before the merger
Net profit attributable to shareholders of the
39,674,066.28 31,621,212.01
parent company
Profit and loss of minority shareholders 8,606,172.07 6,297,418.14
6. Earnings per share -- --
(1) Basic earnings per share 0.0506 0.0403
(2) Diluted earnings per share 0.0506 0.0403
7. Other comprehensive income -171,581.18 70,999.11
8. Total comprehensive income 48,108,657.17 37,989,629.26
Total comprehensive income attributable to
39,559,827.53 31,668,483.22
shareholders of the parent company
Total comprehensive income attributable to
8,548,829.64 6,321,146.04
minority shareholders
Legal representative: Wang Li Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong
4. Profit Statement of the Parent Company
Prepared by: Shenzhen SEG Co., Ltd.
Unit: RMB Yuan
Item Amount of the current period Amount of the previous period
1. Operating revenue 74,311,894.64 63,626,986.74
Less: operating cost 37,003,105.13 31,897,510.12
Operating tax and surcharges 4,146,889.84 3,570,332.26
Sales expenses 0.00 0.00
Management expenses 6,954,194.92 9,704,466.80
Financial expenses -3,407,472.49 -4,550,027.98
Loss from asset impairment 0.00
Plus: income from change of fair value (Loss is
0.00
marked with "-")
Income from investment (Loss is marked
22,686,402.75 14,612,084.00
with "-")
Including: income from investment in joint
0.00
ventures and associated enterprises
2. Operating profit (Loss is marked with "-") 52,301,579.99 37,616,789.54
Plus: non-operating revenue 114,182.00 153,872.09
Less: non-operating expenses 4,034.65
Including: loss from disposal of non-current
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Item Amount of the current period Amount of the previous period
assets
3. Total profit (Total loss is marked with "-") 52,415,761.99 37,766,626.98
Less: income tax 9,300,320.14 6,882,805.69
4. Net profit (Net loss is marked with "-") 43,115,441.85 30,883,821.29
5. Earnings per share -- --
(1) Basic earnings per share
(2) Diluted earnings per share
6. Other comprehensive income
7. Total comprehensive income 43,115,441.85 30,883,821.29
Legal representative: Wang Li Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong
5. Consolidated Cash Flow Statement
Prepared by: Shenzhen SEG Co., Ltd.
Unit: RMB Yuan
Item Amount of the current period Amount of the previous period
1. Cash flow from operating activities
Cash received from selling of goods and
268,071,995.15 221,033,817.79
provision of service
Net increase of customers' deposits and
accounts due to banks and other financial 0.00
institutions
Net increase of loans from the Central Bank 0.00
Net increase of loans from other financial
0.00
institutions
Cash received from premiums of original
0.00
insurance contracts
Net cash received from reinsurance business 0.00
Net increase of deposit of the insured and
0.00
investment
Net increase of income from disposal of
0.00
transaction financial assets
Cash received from interest and commissions 16,317,409.74 8,225,159.55
Net increase of loans from banks and other
0.00
financial institutions
Net increase of redemption capital 0.00
Tax refunds 0.00
Other cash received concerning operating 330,693,093.98 261,345,666.29
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Item Amount of the current period Amount of the previous period
activities
Subtotal of cash inflow from operating activities 615,082,498.87 490,604,643.63
Cash paid for goods and service 229,190,665.11 126,975,034.43
Net increase of loans to customers and
28,502,745.66 64,954,605.66
advances
Net increase of accounts due from the Central
0.00
Bank and other financial institutions
Cash paid for compensation pay-outs of
0.00
original insurance contracts
Cash paid for interest and commissions 0.00
Cash paid as insurance dividends 0.00
Cash paid to and on behalf of employees 40,403,312.20 36,113,074.01
Taxes paid 64,518,837.71 84,239,587.03
Other cash paid concerning operating activities 313,164,231.97 229,098,102.08
Subtotal of cash outflow for operating activities 675,779,792.65 541,380,403.21
Net cash flow arising from operating activities -60,697,293.78 -50,775,759.58
2. Cash flow from investment activities
Cash received from withdrawal of investment 1,075,100,402.78 1,818,825,190.40
Cash received from investment income 9,518,204.61 7,758,321.48
Net cash received from disposal of fixed
assets, intangible assets and other long-term 0.00
assets
Net cash received from disposal of subsidiaries
0.00
and other business units
Other cash received concerning investment
0.00
activities
Subtotal of cash inflow from investment activities 1,084,618,607.39 1,826,583,511.88
Cash paid for purchase and construction of
fixed assets, intangible assets and other long-term 8,041,823.48 4,821,647.95
assets
Cash paid for investment 1,039,450,070.26 1,831,560,000.00
Net increase of mortgage loans 0.00
Net cash paid for acquisition of subsidiaries
0.00
and other business units
Other cash paid concerning investment
0.00
activities
Subtotal of cash outflow for investment activities 1,047,491,893.74 1,836,381,647.95
Net cash flow arising from investment
37,126,713.65 -9,798,136.07
activities
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Item Amount of the current period Amount of the previous period
3. Cash flow from financing activities
Cash received from attraction of investment 0.00
Including: cash received by subsidiaries from
0.00
investment of minority shareholders
Cash received from obtainment of loans 40,000,000.00 0.00
Cash received from issuance of bonds 0.00
Other cash received concerning financing
0.00
activities
Subtotal of cash inflow from financing activities 40,000,000.00 0.00
Cash paid for repayment of debts 40,000,000.00 0.00
Cash paid for distribution of dividends and
7,672,883.90 4,699,115.60
profit or repayment of interest
Including: dividends and profit paid by
0.00
subsidiaries to minority shareholders
Other cash paid concerning financing activities 0.00
Subtotal of cash outflow for financing activities 47,672,883.90 4,699,115.60
Net cash flow arising from financing activities -7,672,883.90 -4,699,115.60
4. Influence of exchange rate fluctuation on cash
-300.38 333.94
and cash equivalents
5. Net Increase of cash and cash equivalents -31,243,764.41 -65,272,677.31
Plus: beginning balance of cash and cash
453,132,467.18 644,439,198.78
equivalents
6. Ending balance of cash and cash equivalents 421,888,702.77 579,166,521.47
Legal representative: Wang Li Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong
6. Cash Flow Statement of the Parent Company
Prepared by: Shenzhen SEG Co., Ltd.
Unit: RMB Yuan
Item Amount of the current period Amount of the previous period
1. Cash flow from operating activities
Cash received from selling of goods and
58,022,193.08 60,161,879.30
provision of service
Tax refunds 0.00
Other cash received concerning operating
197,795,988.43 98,379,336.24
activities
Subtotal of cash inflow from operating activities 255,818,181.51 158,541,215.54
Cash paid for goods and service 14,683,864.44 15,970,471.14
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Item Amount of the current period Amount of the previous period
Cash paid to and on behalf of employees 17,576,097.99 16,349,616.67
Taxes paid 46,776,395.61 70,896,122.48
Other cash paid concerning operating activities 248,655,830.62 43,901,282.67
Subtotal of cash outflow for operating activities 327,692,188.66 147,117,492.96
Net cash flow arising from operating activities -71,874,007.15 11,423,722.58
2. Cash flow from investment activities
Cash received from withdrawal of investment 855,840,000.00 551,365,190.40
Cash received from investment income 14,480,921.32 8,341,179.76
Net cash received from disposal of fixed assets,
0.00
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries
0.00
and other business units
Other cash received concerning investment
0.00
activities
Subtotal of cash inflow from investment activities 870,320,921.32 559,706,370.16
Cash paid for purchase and construction of
fixed assets, intangible assets and other long-term 807,911.00 693,104.00
assets
Cash paid for investment 821,965,751.44 623,960,000.00
Net cash paid for acquisition of subsidiaries
0.00
and other business units
Other cash paid concerning investment
0.00
activities
Subtotal of cash outflow for investment activities 822,773,662.44 624,653,104.00
Net cash flow arising from investment
47,547,258.88 -64,946,733.84
activities
3. Cash flow from financing activities
Cash received from attraction of investment 0.00
Cash received from obtainment of loans 0.00
Cash received from issuance of bonds
Other cash received concerning financing
0.00
activities
Subtotal of cash inflow from financing activities 0.00
Cash paid for repayment of debts 0.00
Cash paid for distribution of dividends and
0.00
profit or repayment of interest
Other cash paid concerning financing activities 0.00
Subtotal of cash outflow for financing activities 0.00
Net cash flow arising from financing activities 0.00
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Item Amount of the current period Amount of the previous period
4. Influence of exchange rate fluctuation on cash
-300.38 333.94
and cash equivalents
5. Net Increase of cash and cash equivalents -24,327,048.65 -53,522,677.32
Plus: beginning balance of cash and cash
296,491,241.42 510,486,998.56
equivalents
6. Ending balance of cash and cash equivalents 272,164,192.77 456,964,321.24
Legal representative: Wang Li Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong
62
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7. Consolidated Statement of Changes in Owners' Equity
Prepared by: Shenzhen SEG Co., Ltd.
Amount of the current period
Unit: RMB Yuan
Amount of the current period
Owners' equity attributable to the parent company
Minority
Item Paid-up capital Less: General Total owners'
Capital public Special Surplus public Retained shareholders'
(or share treasury risk Others equity
reserve reserve reserve profits equity
capital) shares provision
I. Ending balance of last year 784,799,010.00 404,380,330.57 102,912,835.67 -96,419,229.99 176,705,783.81 1,372,378,730.06
Plus: change due to alteration of
accounting policies
Correction to errors of the previous
period
Others
II. Beginning balance of the current year 784,799,010.00 404,380,330.57 102,912,835.67 -96,419,229.99 176,705,783.81 1,372,378,730.06
III. Increase and decrease of the current
-114,238.75 39,674,066.28 -1,312,267.26 38,247,560.27
year (Decrease is marked with "-")
1. Net Profits 39,674,066.28 8,606,172.07 48,280,238.35
2. Other comprehensive income -114,238.75 -57,342.43 -171,581.18
Subtotal of the above-mentioned items 1
-114,238.75 39,674,066.28 8,548,829.64 48,108,657.17
and 2
3. Capital invested or decreased by
-791,696.90 -791,696.90
owners
(1) Capital invested by owners -791,696.90 -791,696.90
(2) Amount of share-based payment
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Amount of the current period
Owners' equity attributable to the parent company
Minority
Item Total owners'
Paid-up capital Less: General
Capital public Special Surplus public Retained shareholders'
(or share treasury risk Others equity
reserve reserve reserve profits equity
capital) shares provision
included in owners' equity
(3) Others
4. Profit distribution -9,069,400.00 -9,069,400.00
(1) Withdrawal of surplus public
reserve
(2) Withdrawal of general risk
provision
(3) Amount distributed to owners (or
-9,069,400.00 -9,069,400.00
shareholders)
(4) Others
5. Internal carrying forward of 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
6. Special reserve
(1) Amount withdrawn in the current
period
64
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Amount of the current period
Owners' equity attributable to the parent company
Minority
Item Total owners'
Paid-up capital Less: General
Capital public Special Surplus public Retained shareholders'
(or share treasury risk Others equity
reserve reserve reserve profits equity
capital) shares provision
(2) Amount utilized in the current
period
7. Others
IV. Ending balance of the current period 784,799,010.00 404,266,091.82 102,912,835.67 -56,745,163.71 175,393,516.55 1,410,626,290.33
Amount in previous year
Unit: RMB Yuan
Amount in previous year
Owners' equity attributable to the parent company
Minority
Item Total owners'
Paid-up capital Less: General
Capital public Special Surplus public shareholders'
(or share treasury risk Retained profits Others equity
reserve reserve reserve equity
capital) shares provision
I. Ending balance of last year 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
Plus: retroactive adjustment due to merger
of enterprises under the control of the same
entity
Plus: change due to alteration of
accounting policies
Correction to errors of the previous
period
Others
II. Beginning balance of the current year 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
III. Increase and decrease of the current year 47,271.21 31,621,212.01 366,755.75 32,035,238.97
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Amount in previous year
Owners' equity attributable to the parent company
Minority
Item Total owners'
Paid-up capital Less: General
Capital public Special Surplus public shareholders'
(or share treasury risk Retained profits Others equity
reserve reserve reserve equity
capital) shares provision
(Decrease is marked with "-")
1. Net Profits 31,621,212.01 6,297,418.14 37,918,630.15
2. Other comprehensive income 47,271.21 23,727.90 70,999.11
Subtotal of the above-mentioned items 1 and
47,271.21 31,621,212.01 6,321,146.04 37,989,629.26
2
3. Capital invested or decreased by owners 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(1) Capital invested by owners
(2) Amount of share-based payment included
in owners' equity
(3) Others
4. 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) Withdrawal of surplus public reserve
(2) Withdrawal of general risk provision
(3) Amount distributed to owners (or
-5,954,390.29 -5,954,390.29
shareholders)
(4) Others
5. Internal carrying forward of owners'
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
equity
(1) Capital public reserve transferred to
increase capital (or share capital)
(2) Surplus public reserve transferred to
increase capital (or share capital)
66
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Amount in previous year
Owners' equity attributable to the parent company
Minority
Item Total owners'
Paid-up capital Less: General
Capital public Special Surplus public shareholders'
(or share treasury risk Retained profits Others equity
reserve reserve reserve equity
capital) shares provision
(3) Surplus public reserve compensating
losses
(4) Others
6. Special reserve 0.00
(1) Amount withdrawn in the current period
(2) Amount utilized in the current period
7. Others
IV. Ending balance of the current period 784,799,010.00 407,037,724.18 102,912,835.67 -110,385,156.04 170,031,511.72 1,354,395,925.53
Legal representative: Wang Li Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong
8. Statement of Changes in Owners' Equity of the Parent Company
Prepared by: Shenzhen SEG Co., Ltd.
Amount of the current period
Unit: RMB Yuan
Amount of the current period
Item Paid-up capital Capital public Less: treasury Surplus public General risk Total owners'
Special reserve Retained profits
(or share capital) reserve shares reserve provision equity
I. Ending balance of last year 784,799,010.00 405,652,893.32 102,912,835.67 -106,113,041.79 1,187,251,697.20
Plus: change due to alteration of accounting
policies
Correction to errors of the previous period
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Amount of the current period
Item Paid-up capital Capital public Less: treasury Surplus public General risk Total owners'
Special reserve Retained profits
(or share capital) reserve shares reserve provision equity
Others
II. Beginning balance of the current year 784,799,010.00 405,652,893.32 102,912,835.67 -106,113,041.79 1,187,251,697.20
III. Increase and decrease of the current year
43,115,441.85 43,115,441.85
(Decrease is marked with "-")
1. Net Profits 43,115,441.85 43,115,441.85
2. Other comprehensive income
Subtotal of the above-mentioned items 1 and 2 43,115,441.85 43,115,441.85
3. Capital invested or decreased by owners
(1) Capital invested by owners
(2) Amount of share-based payment included in
owners' equity
(3) Others
4. Profit distribution
(1) Withdrawal of surplus public reserve
(2) Withdrawal of general risk provision
(3) Amount distributed to owners (or
shareholders)
(4) Others
5. Internal carrying forward of owners' equity
(1) Capital public reserve transferred to increase
capital (or share capital)
(2) Surplus public reserve transferred to increase
capital (or share capital)
68
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Amount of the current period
Item Paid-up capital Capital public Less: treasury Surplus public General risk Total owners'
Special reserve Retained profits
(or share capital) reserve shares reserve provision equity
(3) Surplus public reserve compensating losses
(4) Others
6. Special reserve
(1) Amount withdrawn in the current period
(2) Amount utilized in the current period
7. Others
IV. Ending balance of the current period 784,799,010.00 405,652,893.32 102,912,835.67 -62,997,599.94 1,230,367,139.05
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Amount in previous year
Unit: RMB Yuan
Amount in previous year
Item Paid-up capital Capital public Less: treasury Surplus public General risk Total owners'
Special reserve Retained profits
(or share capital) reserve shares reserve provision equity
I. Ending balance of last year 784,799,010.00 404,980,399.08 102,912,835.67 -145,156,733.44 1,147,535,511.31
Plus: change due to alteration of accounting
policies
Correction to errors of the previous period
Others
II. Beginning balance of the current year 784,799,010.00 404,980,399.08 102,912,835.67 -145,156,733.44 1,147,535,511.31
III. Increase and decrease of the current year
30,883,821.29 30,883,821.29
(Decrease is marked with "-")
1. Net Profits 30,883,821.29 30,883,821.29
2. Other comprehensive income
Subtotal of the above-mentioned items 1 and 2 30,883,821.29 30,883,821.29
3. Capital invested or decreased by owners 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(1) Capital invested by owners
(2) Amount of share-based payment included in
owners' equity
(3) Others
4. Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(1) Withdrawal of surplus public reserve
(2) Withdrawal of general risk provision
(3) Amount distributed to owners (or
shareholders)
70
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Amount in previous year
Item Paid-up capital Capital public Less: treasury Surplus public General risk Total owners'
Special reserve Retained profits
(or share capital) reserve shares reserve provision equity
(4) Others
5. Internal carrying forward of owners' equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(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
6. Special reserve 0.00
(1) Amount withdrawn in the current period
(2) Amount utilized in the current period
7. Others
IV. Ending balance of the current period 784,799,010.00 404,980,399.08 102,912,835.67 -114,272,912.15 1,178,419,332.60
Legal representative: Wang Li Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong
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III. Company Profile
1. Company History
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) and the registration number is
440301103573251. Upon the approval of the securities administration departments of Shenzhen
municipality and the State, the Company's B-share and A-share 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 to capital
share, the Company distributed such converted capital share to the tradable A share shareholders. Such
shareholders obtained 4.6445 shares of converted capital share for each 10 shares, which totaled 40,233,322
shares of converted capital share. As a result, relevant non-tradable A shares were also authorized to be
listed and circulated. Among the converted capital share obtained by the tradable A-share shareholders,
6,997,054 shares were received due to the Company's share capital expansion and the rest of 33,236,268
shares were the consideration paid to the tradable A-share shareholders by non-tradable A-share
shareholders under fixed arrangements.
As of December 31, 2012, 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.
2. Nature of Business
The Company belongs to the business services industry.
3. Scope of Business
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 specialized
electronics markets (licenses for specialized markets shall be specially applied for). Location of registration:
31/F, Tower A, the Stars Plaza, Huaqiang Road (N), Futian District, Shenzhen
4. Major Products and Services
The Company provides lease service and other services in the tertiary industry, as well as operation and
management of specialized electronics markets.
5. Organizational Structure of the Company
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General Meeting of Shareholders
Board of Supervisors
Board of Directors
Management of the Company Secretary of the Board Special Committee
Remuneration and Appraisal
Strategic Development Committee Audit Committee
Committee
Market
Human Market Property Developm
Financial Planning Audit
Office Resource Operation Operation ent
Department Department Department
Department Department Department Departme
nt
IV. Main Accounting Policies, Accounting Estimates and Errors of the Previous Period
1. Basis for preparation of the financial statements
Based on the continuous operation, the Company has recognized and measured transactions and events that have
actually occurred and prepared financial statements in accordance with the Accounting Standards for Business
Enterprises – Basic Standards (published by the Ministry of Finance of the People's Republic of China on
February 15, 2006) and 38 specific standards, the application guide of ASBE, the interpretation of ASBE, and
other relevant regulations (hereinafter collectively called "the ASBE"), as well as the No. 15 Preparation
Conventions of Information Disclosure by Companies Offering Securities to the Public - General Regulations on
Financial Report (amended in 2010) released by CSRC.
2. Statement on compliance of ASBE
The financial statements prepared by the Company comply with the requirements of the ASBE and truthfully
and completely reflect the financial position, operating results and cash flows of the Company.
3. Accounting period
A fiscal year lasts from January 1 to December 31 of the Gregorian calendar.
4. Recording currency
Renminbi is the recording currency of the financial statements of the Company.
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5. Accounting treatment method for the merger of enterprises under the control of the same entity and
that not under the control of the same entity
(1) Merger of enterprises under the control of the same entity
The assets and liabilities acquired by the Company in the merger are measured according to the book value of
the merged party on the merger date. 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.
When the accounting policies of the merged party are not consistent with those of the Company, the Company
makes adjustments in accordance with its own accounting policies on the merger date and then makes
recognitions in accordance with the ASBE.
(2) Merger of enterprises not under the control of the same entity
The cost for the merger is the fair value of the assets paid, the liabilities incurred or assumed, and the equity
securities issued by the Company for acquiring control of the purchased party on the day of acquisition.
For the merger of enterprises not under the control of the same entity, which is implemented through multiple
transactions, the separate and consolidated financial statements shall be prepared using different accounting
methods:
(1) In separate financial statements, the sum of the book value of equity held by the purchased party before the
date of acquisition and the newly increased investment cost at the date of acquisition shall be identified as the
initial investment cost of the merger. If the equity held by the purchased party involves any other comprehensive
income before the date of acquisition, the involved other comprehensive income (for example, the profits arising
from changes in the fair value of saleable financial assets can be counted into capital public reserve) shall be
included in current investment income.
(2) In consolidated financial statements, the equity held by the purchased party before the date of acquisition
shall be re-measured at the equity's fair value at the date of acquisition, and the difference between the fair value
and book value of the equity shall be counted into current investment income. If the equity held by the purchased
party involves other comprehensive income before the date of acquisition, the involved income shall be included
in the investment income of the period when acquisition occurs.
The auditing, legal, appraisal and consulting and other relevant management fees paid by the Company during
the merger shall be included in profit and loss during the current period in which they are incurred. The
transaction expenses paid by the acquirer for equity securities and debt securities issued as consideration for the
merger shall be included in the initial recognition amount of equity securities and debt securities.
When the merger cost is more than the fair value of the recognizable net assets of the purchased party, the
difference is recognized by the Company as goodwill. Whereas if the merger cost is less than the fair value of the
recognizable net assets of the purchased party, and such difference is confirmed after review, the difference is
included in current profit and loss.
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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 included in the scope.
The accounting policies and accounting period adopted by all the subsidiaries included in the consolidation
scope shall 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 adjustment of long-term equity
investment in subsidiaries under the equity method.
In the consolidated financial statements, the influence of transactions between the Company and its subsidiaries
and between subsidiaries on the consolidated balance sheet, the consolidated profit statement, the consolidated
cash flow statement and the consolidated statement of changes in owner's equity, is written off.
When the current loss borne by the minority shareholders of a subsidiary exceeds their owners' equity at the
period beginning, the difference shall be written off against the equity of the minority shareholders.
The period-beginning amount of the consolidated balance sheet is adjusted if a subsidiary is increased in this
reporting period through the merger of enterprises under the control of the same entity. The income, expenses
and profits of the subsidiary from the beginning of the period when it was merged to the end of this reporting
period are included in the consolidated profit statement. The cash flow of the subsidiary from the beginning of
the period when it was merged to the end of this reporting 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 this
reporting period through the merger of enterprises not under the control of the same entity. The income,
expenses and profits of the subsidiary from the date of acquisition to the end of this reporting period are included
in the consolidated profit statement. The cash flow of the subsidiary from the date of acquisition to the end of
this reporting period is included in the consolidated cash flow statement.
If the Company disposes a subsidiary in this reporting period, the income, expenses and profits of the subsidiary
from the period beginning to the disposal day 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.
If the Company losses control of its subsidiary due to disposal of part of equity investment or other reasons, the
remaining equity shall be re-measured at fair value on the day when the Company losses control of the
subsidiary. (Consideration received in connection with equity disposal plus Fair value of remaining equity,
minus Net assets that are calculated based on the original shareholding proportion since the day of acquisition)
shall be included in the investment income in the period when the Company losses control of the subsidiary.
Other comprehensive income in connection with the subsidiary's equity investment shall be transferred to the
current investment income when the Company losses control of the subsidiary.
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7. Standards for recognition 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 recognized as cash. The investments that meet the four conditions of
shorter term (to be mature within three months from the purchase day), strong liquidity, easiness in being
converted into known cash, very small risk of value fluctuation are recognized as cash equivalents.
8. Foreign currency business and translation of the financial statements in foreign currency
(1) Foreign currency business
Foreign currency businesses are included in accounts after relevant amounts are translated into RMB according
to the sight exchange rate on the transaction day as the exchange rate for translation.
The balance of the monetary items in foreign currency is translated according to the sight exchange rate on the
balance sheet date while the translation difference caused is all included in current profit and loss, 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 sight exchange rate on the transaction date and the amount in the recording currency is not changed. The
non-monetary items in foreign currency measured at fair value are translated according to the sight exchange rate
on the recognition date of the fair value while the translation difference caused is included in current profit and
loss 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 sight exchange rate on the
balance sheet date. The owners' equity items other than "retained profits" are translated according to the sight
exchange rate at the time of incurrence. The income and expense items in the profit statement are translated
according to the sight 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 owner's equity items to current profit and loss 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 profit and loss 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 at the fair value whose
changes are included in current profit and loss, including transaction monetary assets or liabilities and the
financial assets or liabilities (and those that can be directly assigned as financial assets or liabilities measured at
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the fair value and whose changes are included in current profit and loss), held-to-maturity securities, loans and
accounts receivable, financial assets available for sale, and other financial liabilities.
(2) Recognition basis and measurement method of financial instruments
1) Financial assets (liabilities) measured at fair value and with changes included in current profit and loss
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 recognized amount at the
time of acquisition.
Relevant transaction expenses are included in current profit and loss. The interests and cash dividends
obtained during the time of holding are recognized as investment income.
At the time of disposal, the difference between the fair value and the initial recorded amount in the account
is recognized as investment income and the profit and loss 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
recognized amount.
During the period of holding, the interest income is calculated and recognized in accordance with the
amortized and the actual interest rate, which is included in the investment income. The actual interest rate is
recognized 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 included in 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 instruments 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
recognized amount. For those of a financing nature, the current value is taken as the initial recognized
amount.
At the time of collection or disposal, the difference between the price of acquisition and the book value of
such accounts receivable are included in current profit and loss.
4) Financial assets available for sale
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 recognized amount at the time of obtainment.
The interests or cash dividends obtained during the time of holding are recognized as investment income.
Such assets are measured at fair value at the end of the period and the changes of fair value are included in
capital public reserve (other capital public reserve).
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At the time of disposal, the difference between the price of acquisition and the book value of such financial
assets is included in investment profit and loss. 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 included in investment profit and loss.
5) Other financial liabilities
The sum of the fair value of such assets and relevant transaction expenses is taken as the initial recognized
amount. The amortized cost is adopted in the subsequent measurement.
(3) Recognition basis 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 recognition 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
recognition of such financial assets is not terminated.
In the judgment whether a financial asset transfer meets the above conditions for termination of its recognition,
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 recognition, the difference of the following two amounts is included in current
profit and loss.
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 where the transferred financial assets are the
financial assets available for sale).
If the partial transfer of financial assets meets conditions for termination of recognition, the part with its
recognition terminated and that with its recognition 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 included in current profit and loss.
① The book value of the part with its recognition terminated;
② The sum of the consideration of the part with its recognition 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
recognition terminated (involving the situation where the transferred financial assets are the financial assets
available for sale).
Where the financial assets transfer does not meet the conditions for termination of recognition, the recognition of
such financial assets is continued. The received consideration is recognized as a financial liability.
(4) Conditions for termination of recognition of financial liabilities
If all or a part of current obligations of a financial liability are discharged, the recognition 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 recognition of the existing financial liability is terminated and the new
financial liability is recognized in the meantime.
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If material alteration has been made to all or a part of contract terms of the existing financial liability, the
recognition of the existing liability or part of it is terminated and, in the meantime, the liability after the
alteration is made is recognized as a new financial liability.
If the recognition of all or a part of a financial liability is terminated, the difference between the book value of
the liability with its recognition terminated and the consideration (including non-cash assets transferred or the
new liability assumed) is included in current profit and loss.
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 fair value of the part with its recognition continued and that with its
recognition terminated. The difference between the book value allocated to the part with its recognition
terminated and the consideration (including non-cash assets or the new liability assumed) is included in current
profit and loss.
(5) Methods for recognition of the fair value of financial assets and liabilities
For the financial assets and financial liabilities that exist in an active market, the Company recognizes their fair
value based on the quotation in the active market. For those that do not exist in an active market, the Company
estimates their fair value using 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 (DCF) technique and the option pricing model. For
those initially acquired or raw financial assets and financial liabilities, the Company recognizes their fair value
based on the market price.
(6) Impairment test method and impairment provision accrual method for financial assets (excluding
accounts receivable)
The Company shall check on the balance sheet date the book value of the financial assets except those measured
at fair value and with changes included in current profit and loss. If there is any objective evidence indicating
that a loss has occurred to these financial assets, impairment provision shall be made.
① Impairment provision for 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 included in owners' equity are transferred out and
relevant impairment loss is recognized.
② Impairment provision for held-to-maturity investments:
If there is any objective evidence indicating that a loss has occurred to the held-to-maturity investments,
calculate and recognize the impairment loss based on the difference between the book value of these investments
and the current value of the expected future cash flow. If there is any evidence indicating that the investment
value has recovered after provision, the originally recognized impairment loss can be reversed and included in
current profit and loss. However, the reversed book value shall not exceed the amortized cost of the financial
assets at the date of provision reversal if impairment provision has not been made.
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10. Recognition criteria and accrual method for the bad debt provision for accounts receivable
1. Accounts receivable with significant amount individually, for which bad debt provision is separately
accrued
(1) Bad debt provision for accounts receivable with significant amount individually
Criterion or amount limit for determining a significant individual
Top five accounts receivable
amount
Carry out independent impairment test. If the current value of
the expected future cash flow is less than its book value, a
Accrual method of bad debt provision separately for each single provision shall be made for the bad debts which will be
account receivable with significant amount individually included in current profit and loss. The accounts receivable
which has no value diminution shall be included in the bad
debts provision made for the corresponding portfolio.
(2) Accounts receivable with accrual of bad debt provision by portfolio
Accrual method of the bad
Portfolio name Criteria for portfolio determination
debt provision by portfolio
The accounts receivable that have no risk in recovery at the end
of the year, for example, guarantee money, shall be identified as
Credit risk characteristics Aging analysis method a separate portfolio for which no provision is made for bad debts.
Other accounts receivable shall be classified by age into different
portfolios based on credit risks.
Bad debt provision made using the aging analysis method
√ Applicable Not applicable
Provision proportion of accounts
Duration of the aging Provision proportion of other accounts receivable (%)
receivable (%)
1-2 years 5% 5%
2-3 years 10% 10%
Over 3 years 20% 20%
Accounts receivable in the portfolio, for which the bad debt provision is accrued by the Percentage of Total
Accounts Receivable Outstanding Method
Applicable √ Not applicable
Accounts receivable in the portfolio, for which the bad debt provision is accrued by other methods
Applicable √ Not applicable
(3) Accounts receivable with insignificant amount individually, for which bad debt provision is separately
accrued
For an account receivable with insignificant amount individually, if there is objective
Reason of making bad debt provision
evidence proving that impairment occurs to it, then conduct an independent
separately
impairment test against the account.
Accrual method for making bad debt Make the bad debt provision based on the balance between the present value of
provision future cash flow and its book value.
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11. Inventory
(1) Classification of inventory
Inventory refers to the finished products or commercial products owned by the Company in daily activities for
sale, and the products in process, and the materials consumed in manufacturing or service delivery process.
Inventory is classified as follows: materials in transit, raw materials, circulating materials, in-stock goods, goods
in process, delivered goods and consigned processing materials and etc.
(2) Pricing method of delivered inventory
Pricing method: weighted average method
(3) Recognition 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 recognized 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 recognized 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.
Recovery of value decline provision
Where the factors previously causing the recording of the reduction of inventory value disappear, the reduced
amount is restored and transferred back from the amount of the originally accrued inventory decline provision.
The transferred amount is included in current profit and loss.
(4) Inventory system of stock
Inventory system: perpetual inventory system
(5) Amortization method of low-value consumables and packaging materials
For low-value consumables:
Amortization method: one-off amortization method
For packaging materials:
Amortization method: one-off amortization method
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12. Long-term equity investment
(1) Recognition of investment cost
Long-term equity investment formed from enterprise merger: In the merger of enterprises under the control of
the 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 recognized as the initial investment cost for 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
writing off. All direct relevant expenses arising from the merger, including the auditing fee, evaluation fee and
legal fee, are included in current profit and loss at the time when the fees accrue. If the merged party has
consolidated financial statements, the initial investment cost of long-term equity investment shall be recognized
based on the owners' equity in the consolidated financial statements at the merger date. In the merger of
enterprises not under the control of the 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 Company for the acquisition
of the control of the purchased party. All direct relevant expenses arising from the merger, including agency fees
like auditing fee, evaluation fee and legal fee and relevant management fee, are included in current profit and
loss at the time when the fees accrue. The transaction costs for the equity securities or debt securities issued as
the purchase price are included in the initial recognized amount. In the merger of enterprises not under the
control of the same entity, which is implemented through multiple transactions, the separate and consolidated
financial statements shall be prepared using different accounting methods: In separate financial statements, the
sum of the book value of equity held by the purchased party before the date of acquisition and the newly
increased investment cost at the date of acquisition shall be identified as the initial investment cost of the merger.
If the equity held by the purchased party involves any other comprehensive income before the date of acquisition,
the involved other comprehensive income (for example, the profits arising from changes in the fair value of
saleable financial assets can be counted into capital public reserve) shall be included in current investment
income. In consolidated financial statements, the equity held by the purchased party before the date of
acquisition shall be re-measured at the equity's fair value at the date of acquisition, and the difference between
the fair value and book value of the equity shall be counted into current investment income. If the equity held by
the purchased party involves other comprehensive income before the date of acquisition, the involved income
shall be included in the investment income of the period when acquisition occurs. If future items likely to
influence the merger cost, for which an agreement has been reached, are estimated very possible to occur at the
acquisition date and the amount of influenced merger cost can be measured reliably, these future items are also
included in the merger cost. ii. Long-term equity investment obtained in 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 recognized as the initial investment cost for 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 recognized 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 recognized 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
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does not meet the above premises, the book value of the received assets and relevant taxes payable is recognized
as the cost of the long-term equity investment. The initial investment cost of the long-term equity investment
obtained through debt restructuring is recognized according to its fair value.
(2) Subsequent measurement and recognition of profit and loss
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 organizations, 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 organizations is done according to the equity method. When the Company can exercise
significant influence on or joint control over the invested organizations, if the initial investment cost is larger
than the investment, the Company shall enjoy the difference with the due share of the fair value of the
discernible net assets of the invested organizations and the initial investment cost of the long-term equity
investment shall not be adjusted; if the initial investment cost is smaller than the investment, the Company shall
enjoy the difference with the due share of the fair value of the discernible net assets of the invested organizations
and such difference is included in current profit and loss. In the accounting treatment of the changes in owners'
equity other than net profit and loss of the invested organizations, the book value of the long-term equity
investment is adjusted and the capital public reserve (other capital public reserve) is added or decreased with
respect to the part of the changes in owners' equity other than net profit and loss of the invested organizations
that the Company shall enjoy or bear according to the proportion of shareholding under the circumstance that the
proportions of shareholding remain unchanged. If the invested organizations can provide consolidated financial
statements during the holding period, the investment shall be calculated based on the consolidated financial
statements, net profit and other investment changes. ii. Recognition of profit and loss: Under the cost method, the
Company recognizes investment income according to the cash dividends or profits enjoyed by the Company, for
which the invested organizations declare 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 Company recognizes its share of the net profit or net loss of the invested
organizations based on the fair value of various recognizable assets of the invested organizations after
adjustment of the invested organizations' net profit, the Company's share of the profit and loss arising from
internal transactions between the Company and the joint venture and between joint ventures shall be written off.
The investment profit and loss shall be recognized on this basis. The Company shall abide by the following
procedure when recognizing its share of the loss of the invested organizations: First, the book value of the
long-term equity investment is written off. Second, if the book value of the long-term equity investment is not
sufficient for writing off, the investment loss shall continue to be recognized within the limit of the book value of
other long-term equity that practically constitutes net investments into the invested organizations and the book
values of long-term accounts receivable and others are written off. Finally, if the enterprise still bears additional
obligations as agreed in the investment contract or agreement after the above processing, liabilities are
recognized according to the anticipated obligations to be borne and included in current investment loss. Where
the invested organizations realize profits in the later periods, the Company shall make accounting treatment in
the reversed sequence against the above after deducting the shared loss not yet recognized, reduce the book
balance of the recognized anticipated liabilities, restore other long-term equity that practically constitutes net
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investments into the invested organizations and the book value of the long-term equity investment, and recognize
investment income at the same time.
(3) Basis that the invested organizations are under common control or 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 organizations. 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 organizations.
(4) Impairment test method and accrual method of impairment provision
On the balance sheet date, if there is any sign of diminution in value of long-term equity investment due to
market price fall or deterioration of the invested organizations' operation status, the recoverable amount of
long-term equity investment shall be recognized according to the higher one of the net amount of the fair value
of the single long-term equity investment minus the disposal expenses and the current value of the expected
future cash flow of the long-term equity investment. Where the recoverable amount of the long-term equity
investment is lower than its book value, the book value of such assets may be reduced and included in the
recoverable amount. The reduced amount is recognized as assets impairment loss and included in current profit
and loss, and the corresponding assets impairment provision is made. 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 recognized 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 facing 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 recognized as impairment loss. For the long-term equity investment calculated
using the cost method, consider whether the value of long-term equity investment falls after the cash dividends
or profit declared to be distributed by the invested organizations are recognized to be investment profit. Once the
impairment loss of long term equity investment is recognized, such loss will not be transferred back.
13. Investment properties
Investment properties refer to the property held for earning rental or increasing the value of capital, including the
right to use of any rented land, the right to use any land held for transfer after appreciation and the right to use
any rented building.
The Company uses the cost of investment properties as entry value. The cost of purchased investment properties
includes the purchase price, relevant taxes, and other expenses directly related to the asset. The cost of a
self-built investment property consists of the necessary expenses for building the asset to the expected condition
for use.
The Company conducts subsequent measurement of the investment properties using the cost pattern, and makes
accrual depreciation or amortization for buildings and land use rights based on their expected service life and
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residual value. The following table lists the expected service life, residual value, and annual depreciation
(amortization) rate of investment properties:
Annual depreciation
Category Expected service life (year) Residual value
(amortization) rate
Houses and buildings 20-40 5% 4.75%-2.375%
When the purpose of an investment property changes to self-use, the Company shall convert the investment
property to fixed or intangible assets since the day of change. When the property with the right of self-use is
changed for generating rents or capital appreciation, the Company shall convert fixed or intangible asset to
investment properties since the day of change. The book value of the property prior to the conversion shall be
entry value after conversion.
For the investment properties facing impairment, the Company evaluates their recoverable amount and
recognizes relevant impairment loss if the recoverable amount is less than the book value.
Once the impairment loss of long-term equity investment is recognized, such loss will not be transferred back.
If an investment property is disposed, or if it withdraws permanently from use and if no economic benefit will be
obtained from the disposal, the recognition of it as an investment property shall be terminated. When an
enterprise sells, transfers or discards any investment properties, or when any investment properties of an
enterprise are damaged or destroyed, the enterprise shall deduct the book value of the investment properties as
well as the relevant taxes from the disposal income, and include the amount in current profit and loss.
14. Fixed assets
(1) Conditions on recognition of fixed assets
Fixed assets refer to the tangible assets held for the purpose of the manufacture of commodities, provision of
labor services, lease or operation and management with a term of use exceeding one fiscal year. The recognition
of fixed assets can be made only when all of the following conditions are satisfied:① Economic interest relevant
to the fixed assets is likely to flow into the Company; ② The cost of the fixed assets can be reliably measured.
(2) Recognition basis and pricing method for fixed assets obtained by financing lease
The fixed assets rented by the Company can be recognized as the fixed assets obtained by financing lease when
meeting one or several criteria as follows: ① When the lease term is due, the ownership of the leased asset is
transferred to the Company. ② The Company has the option to buy the leased asset at a price which is expected
to be far lower than the fair value of the leased asset at the date when the option becomes exercisable. Thus, on
the lease beginning date, it can be reasonably determined that the option will be exercised. ③ Even if the
ownership of the asset is not transferred, the lease term covers the major part of the service life of the leased
asset.④ The current value of the minimum lease payment that is paid by the Company on the lease beginning
date amounts to substantially all of the fair value of the leased asset on the lease beginning date. v. The leased
assets are of a special nature that only the Company can use them without making major modifications. The
Company shall record the lower one of the fair value of the leased asset and the current value of the minimum
lease payments on the lease beginning date as the entry value in an account, recognize the amount of the
minimum lease payments as the entry in an account of long-term account payable, and treat the balance between
the recorded amount of the leased asset and the long-term account payable as unrecognized financing charges.
The initial direct costs such as commissions, attorney's fees, traveling expenses, stamp duties directly attributable
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to the leased item incurred during the process of lease negotiating and lease contract signing shall be included in
the asset value of the current period. The unrecognized financing charge shall be amortized to each period during
the lease term. In calculating the depreciation of a leased asset, the Company adopts a depreciation policy for
leased assets consistent with that for depreciable assets which are owned by the Company. If it is reasonably
certain that the Company will obtain the ownership of the leased asset when the lease expires, the leased asset
shall be fully depreciated over its service life. If it is not reasonably certain that the Company will obtain the
ownership of the leased asset at the expiry of the lease term, the leased asset shall be fully depreciated over the
shorter one of the lease term or its service life.
(3) Depreciation method of various fixed assets
Classified provisions shall be made for fixed assets depreciation using the straight-line method, except for the
fixed assets that have been fully depreciated but are still in use, and the depreciation rate shall be determined
according to the category, expected service life, and residual value of fixed assets.
For the fixed assets leased by financing lease, if it can be reasonably determined that the ownership 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.
For the fixed assets that are formed by special reserve expenditure, the fixed assets cost shall be written off
against the special reserve and the accumulated depreciation of the same amount shall be recognized. In later
periods, such fixed assets shall not be depreciated any more.
The Company determines the service life and residual value of fixed assets based on the nature and use of the
fixed assets. The Company rechecks the service life, residual value, and depreciation method of fixed assets at
the end of every year. In case of any discrepancy between the recheck result and estimated result, the Company
makes an adjustment correspondingly.
Depreciation period and annual depreciation rate of various fixed assets:
Category Depreciation period (year) Residual value (%) 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
(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 signs of impairment on its fixed assets.
Where there are signs of impairment on fixed 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 included in the recoverable amount. The reduced amount is recognized as assets impairment loss
and included in current profit and loss.
At the same time, the corresponding assets impairment provision is accrued. After the recognition of assets
impairment loss, corresponding adjustments are made in the future periods on the depreciation or amortized
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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 recognized, the loss will not be transferred back in later accounting
periods.
Where there are signs 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.
15. Construction in progress
(1) Type of construction in progress
The construction in progress built by the Company shall be valued according to its actual cost which is
composed of all necessary expenses incurred for bringing the asset to the expected conditions for use, including
material costs, labor costs, relevant taxes, borrowing costs eligible for capitalization, and indirect expenses
eligible for amortization. Cost accounting for the construction in progress of the Company shall be made based
on projects.
(2) Standards and time points for the construction in progress being 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 entry 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 signs of impairment on construction in
progress.
Where there are signs of impairment on construction in progress, the recoverable amount of such construction in
progress is estimated. The recoverable amount may be determined according to the higher one of the net value of
the fair value of the construction in progress minus the disposal expenses and the current value of the anticipated
future cash flow of the construction in progress.
Where the recoverable amount of the construction in progress is lower than its book value, the book value of
such construction in progress may be reduced and included in the recoverable amount. The reduced amount is
recognized as assets impairment loss and included in current profit and loss.
At the same time, the corresponding impairment provision for the construction in progress is accrued. Once the
impairment loss of a construction in progress is recognized, it will not be transferred back in later accounting
periods.
Where there are signs 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
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the individual construction, the enterprise makes estimation based on the asset group to which the construction
belongs.
16. Borrowing costs
(1) Recognition principle of borrowing costs capitalization
Where the borrowing costs incurred by the Company can be directly attributable to the purchase, building or
production of the assets that meet the conditions of capitalization, such assets are capitalized and included in
relevant assets cost. Other borrowing costs are recognized as expenses according to the incurred amount at the
time of incurrence and included in current profit and loss.
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 may be capitalized when all of the following conditions are met:
① The assets expenditure has already incurred, including that incurred in the form of cash payment,
non-monetary assets transfer or bearing of debts with interests for the purchase, building or production of the
assets that meet the conditions of capitalization;
② The borrowing costs have already been incurred;
③. The construction or production activities necessary for putting the assets into a usable or salable status have
already started.
(2) Capitalization period 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 is continued. The borrowing costs occurring in the
suspension period are recognized as current profit and loss and the capitalization is continued until the
purchasing and production activities of the assets are restarted.
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(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 shall also be adjusted.
17. Intangible assets
(1) Pricing method of intangible assets
An intangible asset refers to an identifiable non-monetary asset without physical substance which is possessed or
controlled by the Company, including purchased software and land use rights.
① The Company measures intangible assets initially by cost method.
The cost of a separately acquired intangible asset comprises its purchase price, relevant taxes and other directly
attributable cost of preparing the asset for its intended use. Where the payment of purchase price for intangible
assets is delayed beyond the normal credit conditions, which is of financing intention, the cost of the intangible
assets shall be determined on the basis of the current value of the purchase price.
The entry 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 included in
current profit and loss.
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 does not meet the above premises, the book value of the
received assets and relevant taxes payable are taken as the cost of the long-term equity investment and no profit
and loss are recognized.
The entry value in the account of the intangible assets acquired from the merger of enterprises under the control
of the same entity is recognized according to the book value of the merged party. The entry value in the account
of the intangible assets obtained from the merger of enterprises not under the control of the same entity is
recognized according to the fair value.
The cost of the intangible assets formed through internal R&D activities includes: costs of materials and labor,
and fees to register a legal right consumed in generating the intangible assets; amortization of patents and
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licenses that are used to generate the intangible assets and the interest costs incurred to meet the requirements for
capitalization; and other directly attributable costs of preparing the intangible asset for its intended use.
② Follow-up 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) Conditions on estimation of the service life of intangible assets with limited service life
At the end of each period, the service life and amortization method of the intangible assets with limited service
life are reviewed.
At the end of this year, the service life and amortization method of the intangible assets with limited useful lives
are the same as the last year.
Item Estimated service life Basis
Outsourced software 5 Benefit period
Land use right 50 Benefit period
(3) Accrual of impairment provision for intangible assets
Where there are obvious signs of impairment on an intangible asset with definite service life, an impairment test
is carried out at the end of the period.
An impairment test is carried out to the intangible asset to estimate its recoverable amount. The recoverable
amount may be determined according to the higher one of the net value of the fair value of the intangible asset
minus the disposal expenses and the current value of the anticipated future cash flow of the intangible asset.
Where the recoverable amount of the intangible asset is lower than its book value, the book value of such asset
may be reduced and included in the recoverable amount. The reduced amount is recognized as assets impairment
loss and included in current profit and loss.
At the same time, the corresponding asset impairment provision is accrued. After the recognition of asset
impairment loss, corresponding adjustments are made in the future periods on the depreciation or amortized
expenses of the depreciated asset so that the adjusted book value of this intangible asset (with the residual value
deducted) can be amortized on a systematic basis over its remaining service life.
Once the impairment loss of the intangible asset is recognized, it will not be transferred back in later accounting
periods.
Where there are signs of impairment on an intangible asset, the Company estimates the recoverable amount
based on the individual intangible asset. If it is hard to estimate the recoverable amount of the individual asset,
the Company makes estimation based on the asset group to which the asset belongs.
(4) Classification standards for research and development phases of R&D projects inside the Company
Research phase: Undertake original and planned investigation with the prospect of gaining new scientific or
technical knowledge and understanding.
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Development phase: Apply research findings or other knowledge to a plan or design for the production of new or
substantially improved materials, devices and products before the start of commercial production or use.
The expenses for inside R&D projects during the research phase are included in current profit and loss when the
expenses occur.
(5) Accounting of expenditure on internal R&D projects
The expenditure in the development phase of the R&D project can be recognized as intangible assets only when
all the following conditions are met:
① The completion of such intangible assets to makes them available for use or sale is technically feasible;
② There is an intention to complete such intangible assets and use or sell them;
③ The way that the intangible assets generate economic interests can prove that the product using such
intangible assets or the intangible assets have market. If the intangible assets are to be used internally, their
usefulness is 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.
18. Long-term expenses to be apportioned
The long-term expenses to be apportioned are averaged and amortized in the benefit period.
19. Estimated liabilities
(1) Recognition standards for estimated liabilities
The obligations related to contingencies, which meet all the following conditions, are recognized by the
Company as estimated 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 estimated liabilities
Initial measurement is carried out for estimated 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.
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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 estimated liabilities, are
anticipated to be compensated by a third party and compensation amount is basically sure to be received, the
compensation amount is recognized separately as an asset, which shall not exceed the book value of the
estimated liabilities.
20. Share payment and equity instruments
(1) Types of share payment
The Company provides equity-settled and cash-settled share payments.
(2) Recognition of the fair value of equity instruments
For equity instruments such as the granted option, which exist in the active market, the fair value is recognized
according to their prices in the active market. For those not existing in the active market, their fair value is
recognized by using the option pricing model, which shall be selected in consideration of the following factors:
① option exercise price; ② option period; ③ the current price of the underlying shares; ④ the predicted
fluctuation rate of the share price; ⑤ the estimated dividend of the share; ⑥ risk free rate in the option period.
When determining the grant-date fair value of equity instruments, the Company shall take into account the
influence of market conditions in vesting conditions and non-vesting conditions stipulated in the share payment
agreement. Where a share payment has a non-vesting condition, the Company shall recognize receipt of the
corresponding service cost if employees or other parties satisfy all the non-market conditions (for example,
service duration) in vesting conditions.
(3) Basis for recognition of the best estimation of the exercisable equity instruments
On each balance sheet date in the vesting period, the Company shall make the best available estimate of the
number of equity instruments expected to vest, and shall revise that estimate if subsequent information indicates
that the number of equity instruments expected to vest differs from previous estimates. On vesting date, the
Company shall revise the estimate to equal the number of equity instruments that ultimately vest.
(4) Accounting for implementation, modification and termination of share payment plans
The Company shall measure the equity-settled share payment at the fair value of the granted employee equity
instruments. If the equity instruments granted vest immediately, the Company shall include the grant-date fair
value of equity instruments into related cost or expense, with a corresponding increase in capital public reserve.
If the equity instruments granted do not vest until the counterparty completes a specified period of service or
achieves a performance condition in the vesting period, the Company shall include the service obtained in the
current period into related cost or expense and capital public reserve by reference to the grant-date fair value of
equity instruments based on the best estimate of the number of vested equity instruments on each balance sheet
date during the vesting period. The Company shall not adjust the recognized cost or expense and total owners'
equity amount after the vesting date.
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The case-settled share payment shall be measured by reference to the fair value of the Company's eligible
liabilities which is calculated based on shares or other equity instruments. If the equity instruments granted vest
immediately, the Company shall include the fair value of eligible liabilities in related cost or expense on the
vesting date, with a corresponding increase in liabilities. For the cash-settled share payment where the granted
options are not exercised until the counterparty completes a specified period of service or achieves a
performance condition in the vesting period, the Company shall include the service obtained in the current period
into related cost or expense and liabilities by reference to the grant-date fair value of liabilities, based on the best
estimate of the number of vested equity instruments on each balance sheet date during the vesting period. The
Company shall re-measure the fair value of its liabilities on each balance sheet date and settlement date before
settlement of related liabilities, and include liability changes in current profit and loss.
21. Revenue
(1) Standards for recognition time of commodity sales income
The realization of the income from the sale of commodities is recognized when the Company has already
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 recognition 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 is 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;
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 and method for determining contract completion progress when recognizing 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 recognized 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 recognized 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 recognized income
from provision of labor services in previous accounting periods. At the same time, the labor cost of the current
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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 recognized 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 recognized 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 profit and loss and no income is recognized.
When the contracts or agreements signed between the Company and other companies include commodity sales
and labor service and these two parts can be differentiated from each other and can be separately measured,
commodity sales and labor service are handled separately. If they cannot be differentiated from each other or
they can be differentiated from each other but cannot be separately measured, both parts will be handled as
commodity sales.
22. Government subsidies
(1) Type
Government subsidies refer to the monetary assets or non-monetary assets obtained by the Company from the
government free of charge, excluding the capital invested by the government as the owner of the Company. 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 recognized 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
recognized as deferred profits when they are obtained; the subsidies, used to compensate relevant expenses or
losses having occurred, are recognized as the current non-operating income when they are obtained.
23. Deferred income tax assets and liabilities
(1) Basis for recognition of deferred income tax assets
The Company recognizes the deferred income tax assets generated from the deductible temporary difference.
(2) Basis for recognition of deferred income tax liabilities
The temporary difference between the taxes payable not paid of the current period and that of previous periods is
recognized 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 taxes payable, is not included.
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24. 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 lease transactions, paid by the Company, are recorded into current expenses.
In case that the leasing party undertakes the lease-related expenses that shall 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 recognition of the lease income.
In case that the Company undertakes the lease-related expenses which shall 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 recording 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 recognized.
The financing expenses yet to be recognized are apportioned by the Company by the actual interest rate method
in the lease term of the assets and recorded into accounting expenses.
② Assets given out under financing lease: The difference between the total residual value, without guarantee, of
the financing lease payment receivable and the current value is recognized by the Company on the
beginning-date of lease 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 recognized in the lease term is reduced.
25. Changes in main accounting policies and accounting estimates
Are there any changes in main accounting policies and accounting estimates during this reporting period?
Yes √ No
There are no changes in main accounting policies and accounting estimates during this reporting period.
(1) Changes in accounting policies
Are there any changes in main accounting policies during this reporting period?
Yes √ No
There are no changes in the accounting policies during this reporting period.
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(2) Changes in accounting estimates
Are there any changes in main accounting estimates during this reporting period?
Yes √ No
There are no changes in the accounting estimates during this reporting period.
26. Correction of accounting errors of the previous period
Are there any accounting errors of the previous period found in this reporting period?
Yes √ No
There are no accounting errors in the previous period found in this reporting period.
(1) Retrospective restatement
Are there accounting errors of the previous period found to adopt the retrospective restatement method in the
current period?
Yes √ No
(2) Prospective application
Are there accounting errors of the previous period found to adopt the prospective application method in the
current period?
Yes √ No
V. Taxes
1. Main tax categories and tax rates imposed on the Company
Tax category Basis Tax rate
Value-added tax Revenue from commodity sales 17%
Revenue from rental and interest on
Operating tax 5%
loans
Urban maintenance and construction tax Turnover tax payable 7%
Enterprise income tax Taxable income 25%
Education surtax Turnover tax payable 3%
Local education surtax Turnover tax payable 2%
The income tax rate for branch companies and branch plants
The business income tax rate applicable to the subsidiaries of the Company is 25%.
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VI. Enterprise Merger and the Consolidated Financial Statements
1. Information on subsidiaries
(1) The subsidiaries acquired through establishment or investment
Unit: RMB Ten Thousand Yuan
The balance of minority
The amount shareholders' equity of the
of minority parent company offsetting the
Balance of
Actual shareholders' difference between the losses
the net Financial
investment Voting right Minority equity of the current period allocated
Full name of Type of Place of Nature of Registered actual Share-holding statements
Business scope at the end proportion shareholders' offsetting to minority shareholders and
subsidiary subsidiary registration business capital investment proportion (%) consolidated
of the (%) equity minority the shares of the
in or not
period shareholders' year-beginning owners'
subsidiaries
profit and equity of the subsidiary
loss enjoyed by minority
shareholders
Domestic
Xi'an SEG trade;
Share-controlled Service
Electronics Xi'an 300.00 material 195.00 65% 65% Yes 301.11
subsidiary industry
Market Co., Ltd. supply and
marketing
Shenzhen SEG Domestic
Electronics trade;
Share-controlled Service
Market Shenzhen 300.00 material 210.00 70% 70% Yes 204.11
subsidiary industry
Management Co., supply and
Ltd. marketing
Domestic
Suzhou SEG Share-controlled Service
Suzhou 300.00 trade; 135.00 45% 45% Yes 419.23
Electronics subsidiary industry
material
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The balance of minority
The amount shareholders' equity of the
of minority parent company offsetting the
Balance of
Actual shareholders' difference between the losses
the net Financial
investment Voting right Minority equity of the current period allocated
Full name of Type of Place of Nature of Registered actual Share-holding statements
Business scope at the end proportion shareholders' offsetting to minority shareholders and
subsidiary subsidiary registration business capital investment proportion (%) consolidated
of the (%) equity minority the shares of the
in or not
period shareholders' year-beginning owners'
subsidiaries
profit and equity of the subsidiary
loss enjoyed by minority
shareholders
Market Co., Ltd. supply and
marketing
Shenzhen Hotel
Chengguo Indirectly management,
Service
Business Hotel share-controlled Shenzhen 1,000.00 consultancy 1,000.00 66.58% 66.58% Yes 139.79
industry
Management Co., subsidiary and property
Ltd. management
Small loan
business
(pooling
public
Shenzhen SEG
Share-controlled deposits is
Small Loan Co., Shenzhen Finance 15,000.00 8,100.00 53.02% 53.02% Yes 7,287.16
subsidiary prohibited)
Ltd.
within the
administrative
region of
Shenzhen
Shenzhen SEG Share-controlled
Shenzhen E-commerce 4,800.00 E-commerce 1,530.00 51% 51% Yes 483.49
E-Commerce Co., subsidiary
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The balance of minority
The amount shareholders' equity of the
of minority parent company offsetting the
Balance of
Actual shareholders' difference between the losses
the net Financial
investment Voting right Minority equity of the current period allocated
Full name of Type of Place of Nature of Registered actual Share-holding statements
Business scope at the end proportion shareholders' offsetting to minority shareholders and
subsidiary subsidiary registration business capital investment proportion (%) consolidated
of the (%) equity minority the shares of the
in or not
period shareholders' year-beginning owners'
subsidiaries
profit and equity of the subsidiary
loss enjoyed by minority
shareholders
Ltd.
Market
facilities
Shenzhen
leasing,
SEG
property
(Nanjing)
Wholly-owned Service management,
Electronics Nanjing 2,000.00 2,000.00 100% 100% Yes 0.00
subsidiary industry sales of
Market
electronic
Management
products and
Co., Ltd.
advertisement
and so on
Property
leasing, sales
Xi'an Hairong
Share-controlled Service of electronic
SEG Electronics Xi'an 300.00 153.00 51% 51% Yes 76.09
subsidiary industry products and
Market Co., Ltd.
advertisement
and so on
Wujiang SEG Share-controlled Service Electronics
Wujiang 300.00 153.00 51% 51% Yes 134.72
Electronics subsidiary industry market
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The balance of minority
The amount shareholders' equity of the
of minority parent company offsetting the
Balance of
Actual shareholders' difference between the losses
the net Financial
investment Voting right Minority equity of the current period allocated
Full name of Type of Place of Nature of Registered actual Share-holding statements
Business scope at the end proportion shareholders' offsetting to minority shareholders and
subsidiary subsidiary registration business capital investment proportion (%) consolidated
of the (%) equity minority the shares of the
in or not
period shareholders' year-beginning owners'
subsidiaries
profit and equity of the subsidiary
loss enjoyed by minority
shareholders
Market management
Management Co., service
Ltd.
Electronics
Wuxi SEG
Share-controlled Service market
Electronics Wuxi 300.00 153.00 51% 51% Yes 147.00
subsidiary industry management
Market Co., Ltd.
service
Shunde SEG
Electronics
Electronics
Wholly-owned Service market
Market Foshan 600.00 600.00 100% 100% Yes 0.00
subsidiary industry management
Management Co.,
service
Ltd.
Real estate
Nantong SEG
development
Times Square Wholly-owned Service
Nantong 3,000.00 and property 3,000.00 100% 100% Yes 0.00
Development Co., subsidiary industry
operation and
Ltd.
so on
Nanning SEG Wholly-owned Service Electronics
Nanning 800.00 800.00 100% 100% Yes 0.00
Electronics subsidiary industry market
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The balance of minority
The amount shareholders' equity of the
of minority parent company offsetting the
Balance of
Actual shareholders' difference between the losses
the net Financial
investment Voting right Minority equity of the current period allocated
Full name of Type of Place of Nature of Registered actual Share-holding statements
Business scope at the end proportion shareholders' offsetting to minority shareholders and
subsidiary subsidiary registration business capital investment proportion (%) consolidated
of the (%) equity minority the shares of the
in or not
period shareholders' year-beginning owners'
subsidiaries
profit and equity of the subsidiary
loss enjoyed by minority
shareholders
Market management
Management Co., service
Ltd.
Other information on the subsidiaries acquired through 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 Electronics 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.
The registered capital of Shenzhen SEG E-Commerce Co., Ltd. is RMB 48 million. The amount of the initial capital contribution is RMB 30 million. The Company makes
an initial capital contribution of RMB 15.3 million, which accounts for 51% equity of Shenzhen SEG E-Commerce Co., Ltd.
(2) Subsidiaries acquired through the merger of enterprises under the control of the same entity （单位改为万元）
Unit: RMB Ten Thousand Yuan
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The balance of
minority shareholders'
equity of the parent
The amount
company offsetting
of minority
the difference between
shareholders'
Actual Balance of Financial the losses of the
Share-holding Voting right Minority equity
Full name of Type of Place of Nature of Registered Business investment at the net actual statements current period
proportion proportion shareholders' offsetting
subsidiary subsidiary registration business capital scope the end of the investment in consolidated allocated to minority
(%) (%) equity minority
period subsidiaries or not shareholders and the
shareholders'
shares of the
profit and
year-beginning
loss
owners' equity of the
subsidiary enjoyed by
minority shareholders
Shenzhen
SEG Baohua Property
Share-controlled Service
Enterprise Shenzhen 3,080.88 lease and 2,051.25 66.58% 66.58% Yes 2,489.72
subsidiary industry
Development management
Co., Ltd.
Shenzhen Investment
SEG in industrial
Share-controlled
Industry Shenzhen Investment 2,550.00 and 2,550.00 100% 100% Yes 0.00
subsidiary
Investment commercial
Co., Ltd. businesses
Other information on the subsidiaries acquired through the merger of enterprises under the control of the same entity
(3) Subsidiaries acquired through the merger of enterprises not under the control of the same entity
Unit: RMB Ten Thousand Yuan
Full name of Type of Place of Nature of Registered Business Actual Balance of Share-holding Voting right Financial Minority The amount The balance of
subsidiary subsidiary registration business capital scope investment at the net actual proportion proportion statements shareholders’ of minority minority shareholders’
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the end of the investment in (%) (%) consolidated equity shareholders’ equity of the parent
period subsidiaries or not equity company offsetting the
offsetting difference between the
minority losses of the current
shareholders’ period allocated to
profit and minority shareholders
loss and the shares of the
year-beginning
owners’ equity of the
subsidiary enjoyed by
minority shareholders
Changsha
SEG Share-controlled Service Property
Changsha 3,500.00 6,900.00 46% 51% Yes 5,856.93
Development subsidiary industry lease
Co., Ltd.
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Other information on the subsidiaries acquired through the merger of enterprises not under the control of the
same entity
The capital structure of Changsha SEG Development Co., Ltd. at present is that 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 and Huaya 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 Electronic Market Management Co., Ltd. are all
dispatched by the Company that actually controls the operation of Changsha SEG, so Changsha SEG was
included into the consolidation scope.
(2) Information on alteration of the consolidation scope
Information on alteration of the consolidated statement scope
√ Applicable Not applicable
3. Entities included in and those excluded from the consolidation scope in this reporting period
Subsidiaries, special-purpose entities and operating entities whose share-controlling right is formed through
trustee operation or lease, which are included in the consolidation scope in the current period
Unit: RMB Yuan
Name Period-end net assets Net profits of current period
Nantong SEG Times Square Development Co., Ltd. 30,014,491.19 14,491.19
Nanning SEG Electronics Market Co., Ltd. 7,507,861.64 -492,138.36
Subsidiaries, special-purpose entities and operating entities whose share-controlling right is formed through
trusted operation or lease, which are excluded from the consolidation scope in the current period
Unit: RMB Yuan
Net profits from the beginning of
Name Net assets on the disposal date
the year to the disposal date
Ningbo SEG Electronics Market Management Co., Ltd. 1,615,707.96 0.00
Other information on the entities included in and those excluded from the consolidation scope
VII. Notes to Main Items of the Consolidated Financial Statements
1. Monetary capital
Unit: RMB Yuan
Period-end amount Period-beginning amount
Item Amount in Discount Amount in Discount
Amount in RMB Amount in RMB
foreign currency rate foreign currency rate
Cash: -- -- 781,024.56 -- -- 405,448.11
RMB -- -- 779,459.46 -- -- 398,368.08
USD 100.00 6.1787 617.87 973.00 6.2855 6,115.79
HKD 1,189.17 0.79655 947.23 1,189.17 0.8109 964.24
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Bank deposit: -- -- 421,107,678.21 -- -- 452,714,780.24
RMB -- -- 421,107,678.21 -- -- 452,714,780.24
Other monetary capital: -- -- -- -- 12,238.83
RMB -- -- -- -- 12,238.83
Total -- -- 421,888,702.77 -- -- 453,132,467.18
2. Notes receivable
(1) Type of notes receivable
Unit: RMB Yuan
Type Period-end amount Period-beginning amount
Bank's acceptance bill 200,000.00
Total 0.00 200,000.00
3. Accounts receivable
(1) Accounts receivable disclosed by type
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,
10,212,173.07 29.47% 10,181,647.36 99.7% 10,212,173.07 40.97% 10,181,647.36 99.7%
for which bad debt
provision is separately
accrued
Accounts receivable for which bad debt provision is accrued by portfolio
Portfolio 1: Bad debt
provision accrued for
19,631,659.84 56.65% 10,176,497.47 40.82%
by the aging analysis
method
Subtotal of portfolios 19,631,659.84 56.65% 10,176,497.47 40.82% 0.00
Accounts receivable
with an insignificant
amount individually,
4,811,343.57 13.88% 4,004,152.38 83.22% 4,539,536.11 18.21% 4,004,152.38 88.21%
for which bad debt
provision is separately
accrued
Total 34,655,176.48 -- 14,185,799.74 -- 24,928,206.65 -- 14,185,799.74 --
Accounts receivable with a significant amount individually, for which bad debt provision is separately accrued
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√ Applicable Not applicable
Unit: RMB Yuan
Bad debt Percentage of
Content of accounts receivable Book balance Reason for provision
provision provision (%)
The duration is more than 5 years and the
Jiangsu Unicom 3,092,011.09 3,092,011.09 100%
account is impossible to be recovered.
Guangzhou Jiajie Technology Disputes exist and the account is not likely
3,052,571.00 3,022,045.29 99%
Co., Ltd. to be recovered.
Shenzhen Shuangxionghui The duration is more than 5 years and the
2,160,725.63 2,160,725.63 100%
Industrial Co., Ltd. account is impossible to be recovered.
Shenzhen Liyuanshun Industrial The duration is more than 5 years and the
1,906,865.35 1,906,865.35 100%
Co., Ltd. account is impossible to be recovered.
Total 10,212,173.07 10,181,647.36 -- --
Accounts receivable in the portfolio, for which bad debt provision is accrued by the aging analysis method
√ Applicable Not applicable
Unit: RMB Yuan
Period-end amount Period-beginning amount
Duration of the Book balance Book balance
accounts Bad debt provision
Proportion Proportion Bad debt provision
Amount Amount
(%) (%)
Less than one year
Including: -- -- -- -- -- --
Less than one year 19,631,659.84 100% 10,176,497.47 100% 0.00
Subtotal of the
accounts with a
19,631,659.84 100% 10,176,497.47 100% 0.00
duration of less
than one year
Total 19,631,659.84 -- 10,176,497.47 -- 0.00
Accounts receivable in the portfolio, for which the bad debt provision is accrued by the Percentage of Total
Accounts Receivable Outstanding Method
Applicable √ Not applicable
Accounts receivable in the portfolio, for which the 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
Applicable √ Not applicable
(2) Organizations of top five accounts receivable
Unit: RMB Yuan
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Percentage in the total
Relationship with the
Name of company Amount Duration amount of accounts
Company
receivable (%)
Shenzhen Runneng Digital
Customer 12,603,353.46 Less than one year 36.37%
Technology Co., Ltd.
Jiangsu Unicom Customer 3,092,011.09 Over 5 years 8.92%
Guangzhou Jiajie Technology
Customer 3,052,571.00 2-3 years 8.81%
Co., Ltd.
Shenzhen Wodewo Trading
Customer 2,933,858.58 Less than one year 8.47%
Co., Ltd.
Shenzhen Shuangxionghui
Customer 2,160,725.63 Over 5 years 6.23%
Industrial Co., Ltd.
Total -- 23,842,519.76 -- 68.8%
4. Other accounts receivable
(1) Other accounts receivable disclosed by type
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 accounts
receivable with a
significant amount
23,413,223.34 39.39% 23,413,223.34 100% 23,413,223.34 46.34% 23,413,223.34 100%
individually, for which
bad debt provision is
separately accrued
Other accounts receivable for which bad debt provision is accrued by portfolio
Portfolio 1 7,848,361.19 13.20% 2,259.27 0.03% 6,454,063.13 12.77% 2,259.27 0.04%
11,562,467.9
Portfolio 2 19.45% 0.00 0% 10,498,327.38 20.78%
8
19,410,829.1
Subtotal of portfolios 32.65% 2,259.27 0.03% 16,952,390.51 33.55% 2,259.27 0.01%
7
Other accounts
receivable with an
insignificant amount 16,621,153.6
27.96% 8,875,860.97 53.4% 10,156,967.96 20.11% 8,875,860.97 87.39%
individually, for which 6
bad debt provision is
separately accrued
59,445,206.1
Total -- 32,291,343.58 -- 50,522,581.81 -- 32,291,343.58 --
7
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Information on the type of other accounts receivable: Portfolio 1 includes other accounts receivable, for which
bad debt provision is accrued by the aging analysis method; Portfolio 2 includes normal guarantee deposit and
various cash deposit.
Other accounts receivable with a significant amount individually at the period end, for which bad debt provision
is separately accrued
√ Applicable Not applicable
Unit: RMB Yuan
Content of other accounts Percentage of
Book balance Amount of bad debt Reason
receivable provision (%)
The duration is more than 5
Yangjiang Yuntong Grease
8,530,276.35 8,530,276.35 100% years and the account is
Co., Ltd.
impossible to be recovered.
The duration is more than 5
Creditor's right transferred in
5,904,271.52 5,904,271.52 100% years and the account is
by SEG Communications
impossible to be recovered.
The duration is more than 5
Shenzhen Lianjing Trade Co.,
5,697,287.51 5,697,287.51 100% years and the account is
Ltd.
impossible to be recovered.
The duration is more than 5
Shenzhen Top Industry Co.,
3,281,387.96 3,281,387.96 100% years and the account is
Ltd.
impossible to be recovered.
Total 23,413,223.34 23,413,223.34 -- --
Other accounts receivable in the portfolio, 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
Duration of the accounts
Proportion Bad debt provision Proportion Bad debt provision
Amount Amount
(%) (%)
Less than one year
Including:
Less than one year 7,545,924.35 99.7% 16,028,063.53 99.85%
Subtotal of the accounts
with a duration of less 7,545,924.35 99.7% 16,028,063.53 99.85% 0.00
than one year
1-2 years 11,185.40 0.15% 559.27 12,073.73 0.08% 449.27
2-3 years 6,000.00 0.08% 600.00 10,000.00 0.06% 1,000.00
Over 3 years 5,500.00 0.07% 1,100.00 1,586.98 0.01% 317.40
Total 7,568,609.75 -- 2,259.27 16,051,724.24 -- 1,766.67
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Other accounts receivable in the portfolio, for which the bad debt provision is accrued by the Percentage of Total
Accounts Receivable Outstanding Method
Applicable √ Not applicable
Other accounts receivable in the portfolio, for which the bad debt provision is accrued by other methods
Applicable √ Not applicable
Other accounts receivable with an insignificant amount individually at the period end, for which bad debt
provision is separately accrued
Applicable √ Not applicable
(2) Shareholders holding more than 5% (inclusive) of the voting shares of the Company in the accounts
receivable in this reporting period
Unit: RMB Yuan
Period-end amount Period-beginning amount
Name of company
Book balance Bad debt provision accrued Book balance Bad debt provision accrued
Shenzhen SEG Group Co., Ltd. 97,700.00 86,000.00
Total 97,700.00 0.00 86,000.00 0.00
(3) Organizations of top five other accounts receivable
Unit: RMB 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 14.42%
Grease Co., Ltd. organization
Creditor's right
Business related
transferred in by SEG 5,904,271.52 Over 5 years 9.98%
organization
Communications
Shenzhen Lianjing Trade Business related
5,697,287.51 Over 5 years 9.63%
Co., Ltd. organization
Shenzhen Top Industry Business related
3,281,387.96 Over 5 years 5.55%
Co., Ltd. organization
Tonmac International Cooperation partner of
Electronics (Suzhou) Suzhou SEG Electronics 3,012,793.60 Over 5 years 5.09%
Co., Ltd. Market
Total -- 26,426,016.94 -- 44.67%
5. Advances
(1) Advances listed by account duration
Unit: RMB Yuan
Duration of the Period-end amount Period-beginning amount
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accounts Proportion Proportion
Amount Amount
(%) (%)
Less than one
34,400,954.55 100% 37,983,011.33 100%
year
Total 34,400,954.55 -- 37,983,011.33 --
Information on duration of the advances
(2) Organizations of top five advances
Unit: RMB Yuan
Relationship with the Reason for not being
Name of company Amount Duration
Company settled
Tonmac International Cooperation partner of
Electronics (Suzhou) Suzhou SEG Electronics 19,724,140.00 Less than one year Prepaid rent charge
Co., Ltd. Market
Xi'an Gaoke (Group)
Cooperation partner of
New West China
Xi'an SEG Electronics 10,000,000.00 Less than one year Prepaid rent charge
Industrial Development
Market
Co., Ltd.
Chongqing Longcheng
Environmental
Supplier 1,013,000.00 Less than one year Payment in advance
Engineering Equipment
Co., Ltd.
Shenzhen Zhongzhuang
Construction Group Co., Supplier 701,540.00 Less than one year Payment in advance
Ltd.
Shenzhen Runneng
Digital Technology Co., Supplier 526,159.75 Less than one year Payment in advance
Ltd.
Total -- 31,964,839.75 -- --
6. Inventory
(1) Classification of inventory
Unit: RMB Yuan
Period-end amount Period-beginning amount
Provision for Provision for
Item
Book balance inventory price Net book value Book balance inventory price Net book value
drop drop
Raw materials 106,046.31 0.00 106,046.31
Goods in process 87,016,166.09 0.00 87,016,166.09
Goods in inventory 2,229,308.24 0.00 2,229,308.24 2,469,884.18 0.00 2,469,884.18
Low-value
154,209.55 0.00 154,209.55 139,193.05 0.00 139,193.05
consumables
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Total 89,399,683.88 0.00 89,399,683.88 2,715,123.54 0.00 2,715,123.54
7. Other current assets
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Financial products 282,900,000.00 346,200,402.78
Total 282,900,000.00 346,200,402.78
8. Financial assets available for sale
(1) Financial assets available for sale
Unit: RMB Yuan
Item Period-end fair value Period-beginning fair value
Equity instruments available for sale 422,960.51 651,735.42
Total 422,960.51 651,735.42
9. Investment in joint ventures and associated enterprises
Unit: RMB Yuan
Name of the Voting ratio in Total liabilities Total net assets Total operating
Shareholding Total assets at Net profits of
invested the invested at the at the revenue of
radio (%) the period-end current period
company company (%) period-end period-end current period
1. Joint ventures
2. Associated enterprises
Shenzhen
Huakong SEG 22.45% 22.45% 847,419,828.52 632,136,665.26 215,283,163.26 421,860,123.13 -17,723,758.99
Co., Ltd.
Shanghai SEG
Electronics
Market
35% 35% 59,971,456.17 42,283,490.81 17,687,965.36 18,381,928.44 2,018,387.90
Operation
Management
Co., Ltd.
Shenzhen SEG
New Urban
Construction
20% 20% 811,875,663.19 794,376,935.92 17,498,727.27 12,428,654.25 3,618,727.27
and
Development
Co., Ltd.
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10. Long-term equity investment
(1) Details on long-term equity investments
Unit: RMB Yuan
Notes on the occasion
where the proportion of Impairment Cash
Share-holding
Voting ratio in the shares of the provision dividends
Invested Accounting Beginning Increase or proportion in Impairment
Investment cost Ending balance the invested invested organization, accrued in of the
company method balance decrease the invested provision
company (%) held by the Company, is the current current
company (%)
not consistent with the period period
voting right
Shanghai SEG
Electronics
Market
Equity method 1,750,000.00 8,110,001.78 706,435.77 8,816,437.55 35% 35%
Operation
Management
Co., Ltd.
Shenzhen
Huakong SEG Equity method 215,645,740.56 111,200,021.06 -3,979,819.79 107,220,201.27 22.45% 22.45%
Co., Ltd.
Shenzhen SEG
New Urban
Construction
Equity method 2,776,000.00 0 3,499,745.45 3,499,745.45 20% 20%
and
Development
Co., Ltd.
Nanjing
Shangsha Co., Cost method 280,000.00 280,000.00 0.00 280,000.00 0.68% 0.68%
Ltd.
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Notes on the occasion
where the proportion of Impairment Cash
Share-holding
Voting ratio in the shares of the provision dividends
Invested Accounting Beginning Increase or proportion in Impairment
Investment cost Ending balance the invested invested organization, accrued in of the
company method balance decrease the invested provision
company (%) held by the Company, is the current current
company (%)
not consistent with the period period
voting right
Anshan Yibai
Cost method 15,000.00 15,000.00 0.00 15,000.00 15,000.00
Co., Ltd.
Shenzhen SEG
GPS Scientific
Cost method 8,275,321.43 13,515,392.83 0.00 13,515,392.83 12.5% 12.5%
Navigations
Co., Ltd.
Shenzhen SEG
Telecom
Cost method 3,679,217.22 3,679,217.22 0.00 3,679,217.22 99.17% 99.17% 3,679,217.22
Equipment Co.,
Ltd.
Shenzhen
Tianji
Optoelectronic
Cost method 105,000.00 105,000.00 0.00 105,000.00 105,000.00
Technology
Industrial Co.,
Ltd.
Kashgar
Shenzhen City
Cost method 20,000,000.00 0.00 20,000,000.00 20,000,000.00 3.03% 3.03%
Investment Co.,
Ltd.
Total -- 252,526,279.21 136,904,632.89 20,226,361.43 157,130,994.32 -- -- -- 3,799,217.22
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11. Investment properties
(1) Investment properties measured by cost
Unit: RMB Yuan
Increase in current Decrease in current
Item Period-end book balance Period-end book balance
period period
1. Total original book
710,910,814.25 710,910,814.25
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
2. Accumulated
depreciation or
210,745,947.24 9,323,692.41 220,069,639.65
accumulated
amortization in total
(1) Houses and
209,165,146.56 9,278,454.81 218,413,442.88
buildings
(2) Land use right 1,610,959.17 45,237.60 1,656,196.77
3. Total net book value
of investment 500,164,867.01 -9,323,692.41 490,841,174.60
properties
(1) Houses and
496,538,313.69 -9,278,454.81 487,259,858.88
buildings
(2) Land use right 3,626,553.32 -45,237.60 3,581,315.72
4. Total accumulated
impairment provision
0.00 0.00
for investment
properties
(1) Houses and
0.00
buildings
(2) Land use right 0.00
5. Total book value of
500,164,867.01 -9,323,692.41 490,841,174.60
investment properties
(1) Houses and
496,538,313.69 -9,278,454.81 487,259,858.88
buildings
(2) Land use right 3,626,553.32 -45,237.60 3,581,315.72
Unit: RMB Yuan
Amount of the current period
Depreciation and amortization amount of the current period 9,323,692.40
Accrual amount of impairment provision for investment properties of the
0.00
current period
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12. Fixed assets
(1) Fixed assets
Unit: RMB Yuan
Period-end book Decrease in current Period-end book
Item Increase in current period
balance period balance
1. Total original book value: 113,868,899.79 3,495,205.27 712,693.25 116,651,411.81
Including: houses and
48,303,175.02 0 48,303,175.02
buildings
Machinery equipment 28,818,294.39 949,728.24 0 29,768,022.63
Transportation vehicles 4,479,657.24 1,664,563.24 240,621.00 5,903,599.48
Electronic equipment 30,206,789.12 778,361.74 472,072.25 30,513,078.61
Other equipment 2,060,984.02 102,552.05 0 2,163,536.07
Period-end book Increase in Provision in current Decrease in current Ending balance of
--
balance current period period period current period
2. Total accumulated
70,702,408.27 0.00 2,735,234.79 356,982.24 73,080,660.82
depreciation:
Including: houses and
24,976,727.73 441,045.54 25,417,773.27
buildings
Machinery equipment 26,122,449.04 868,976.29 17,584.50 26,973,840.83
Transportation vehicles 2,121,725.01 308,569.23 228,589.80 2,201,704.44
Electronic equipment 16,435,536.96 956,733.15 110,807.94 17,281,462.17
Other equipment 1,045,969.53 159,910.58 1,205,880.11
Period-end book Ending balance of
-- --
balance current period
3. Total net book value of
43,166,491.52 -- 43,570,750.99
fixed assets:
Including: houses and
23,326,447.29 -- 22,885,401.75
buildings
Machinery equipment 2,695,845.35 -- 2,794,181.80
Transportation vehicles 2,357,932.23 -- 3,701,895.04
Electronic equipment 13,771,252.16 -- 13,231,616.44
Other equipment 1,015,014.49 -- 957,655.96
Electronic equipment --
Other equipment --
5. Total book value of fixed
43,166,491.52 -- 43,570,750.99
assets:
Including: houses and
23,326,447.29 -- 22,885,401.75
buildings
Machinery equipment 2,695,845.35 -- 2,794,181.80
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Transportation vehicles 2,357,932.23 -- 3,701,895.04
Electronic equipment 13,771,252.16 -- 13,231,616.44
Other equipment 1,015,014.49 -- 957,655.96
The depreciation amount of the current period is RMB 2,735,234.79. No construction in progress is transferred
to fixed assets at original value.
(2) Fixed assets not gaining the property right certificate
Reason for not gaining the property right Anticipated time to gain the property right
Item
certificate certificate
Qualification procedures are not
Houses and buildings
completed.
Information on fixed assets
13. Construction in progress
(1) Construction in progress
Unit: RMB Yuan
Period-end amount Period-beginning amount
Item Impairment Impairment
Book balance Net book value Book balance Net book value
provision provision
Market reconstruction
973,898.44 0.00 973,898.44 185,086.00 0.00 185,086.00
engineering
Total 973,898.44 0.00 973,898.44 185,086.00 0.00 185,086.00
14. Intangible assets
(1) Intangible assets
Unit: RMB Yuan
Period-end book Increase in current Decrease in current Period-end book
Item
balance period period balance
1. Total original book value 2,127,084.24 562,346.00 21,700.00 2,667,730.24
Land use right 159,759.24 159,759.24
Outsourced software 1,967,325.00 562,346.00 21,700.00 2,507,971.00
2. Total accumulated
1,673,802.02 124,334.16 0.00 1,798,136.18
amortization
Land use right 49,235.27 1,379.88 50,615.15
Outsourced software 1,624,566.75 122,954.28 1,747,521.03
3. Total net book value of
453,282.22 438,011.84 21,700.00 869,594.06
intangible assets
Land use right 110,523.97 -1,379.88 0.00 109,144.09
Outsourced software 342,758.25 439,391.72 21,700.00 760,449.97
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Period-end book Increase in current Decrease in current Period-end book
Item
balance period period balance
Total book value of
453,282.22 438,011.84 21,700.00 869,594.06
intangible assets
Land use right 110,523.97 -1,379.88 0.00 109,144.09
Outsourced software 342,758.25 439,391.72 21,700.00 760,449.97
Amortization for the current period is RMB 124,334.16.
15. Goodwill
Unit: RMB Yuan
Name of the invested Period-end
Increase in current Decrease in current
organization or the item Beginning balance Ending balance impairment
period period
contributing to a goodwill provision
Changsha SEG Development Co.,
10,328,927.82 0.00 0.00 10,328,927.82 0.00
Ltd.
Total 10,328,927.82 0.00 0.00 10,328,927.82 0.00
Impairment test method and accrual method of impairment provision for goodwill
The Company purchased 46% of the equity of Changsha SEG Development Co., Ltd. at the price of RMB 69
million in March 2009. The book value of net assets of Changsha SEG was RMB 57,508,384.14 in that month,
while the fair value of net assets of Changsha SEG after the evaluation for the added value was RMB
127,545,809.08. Thus, a goodwill amounting to 10,328,927.82 was formed.
16. Long-term expenses to be apportioned
Unit: RMB Yuan
Period-beginning Increase in Amortization in Period-end Reason for other
Item Other decrease
amount current period current period amount decrease
Decoration
37,493,497.17 3,315,935.47 4,561,665.80 5,000.00 36,242,766.84
charges
Firefighting
449,883.39 365,600.00 456,660.09 0.00 358,823.30
renovation
Land price for
Block B and
market 157,807.94 85,534.00 24,149.01 0.00 219,192.93
supporting fee for
Baohua Building
Others 1,504,197.11 1,504,197.11 0.00 0.00
Total 38,101,188.50 5,271,266.58 6,546,672.01 5,000.00 36,820,783.07 --
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17. Deferred income tax assets and liabilities
(1) Net amount of deferred income tax assets and liabilities not being offset
Deferred income tax assets and liabilities that have been recognized
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Deferred income tax assets:
Asset impairment provision 9,778,422.03 9,778,422.03
Subtotal 9,778,422.03 9,778,422.03
Deferred income tax liabilities:
Changes in the fair value of financial assets
available for sale, which is accrued as capital 83,138.88 140,332.61
public reserve
Change in the fair value of houses and buildings
18,632,873.27 19,187,336.19
due to mergers (the increase in evaluation)
Subtotal 18,716,012.15 19,327,668.80
Details in deferred income tax assets not recognized:
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Deductible temporary differences 13,452,513.40 13,182,271.89
Deductible losses 39,194,787.69 39,194,787.69
Total 52,647,301.09 52,377,059.58
The deductible loss of deferred income tax assets that have not been recognized will come to maturity in the
following years.
Unit: RMB Yuan
Year Period-end amount Period-beginning amount Remarks
2013 366,612.59 366,612.59
2014 10,534,872.67 10,534,872.67
2015
2016 19,695,459.23 19,695,459.23
2017 8,597,843.20 8,597,843.20
Total 39,194,787.69 39,194,787.69 --
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(2) Net amount of deferred income tax assets and liabilities being offset
Items in the portfolio of deferred income tax assets and liabilities being offset
Unit: RMB Yuan
Deductible or tax Deductible or tax
Deferred income tax Deferred income tax
payable temporary payable temporary
assets or liabilities assets or liabilities
differences after differences after
Item after being offset in after being offset at
being offset in the being offset at the
the end of this the beginning of this
end of this reporting beginning of this
reporting period reporting period
period reporting period
Deferred income tax assets 9,778,422.03 9,778,422.03
Deferred income tax liabilities 18,716,012.15 19,327,668.80
18. Details in impairment provision for assets
Unit: RMB Yuan
Period-end book Increase in current Decrease in current period Period-end book
Item
balance period Write back Write off balance
1. Bad debt provision 46,477,143.32 46,477,143.32
2. Provision for inventory
0.00 0.00
price drop
5. Impairment provision for
3,799,217.22 3,799,217.22
long-term equity investment
6. Impairment provision for
0.00 0.00
investment properties
9. Impairment provision for
0.00 0.00
construction in progress
13. Impairment provision for
0.00
goodwill
14. Others 2,019,599.44 270,241.51 2,289,840.95
Total 52,295,959.98 270,241.51 52,566,201.49
19. Accounts payable
(1) Accounts payable
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Less than one year 626,395.63 3,821,962.30
1-2 years 1,674,053.64 166,819.80
2-3 years 19,000.40 22,595.63
Over 3 years 12,586.23
Total 2,332,035.90 4,011,377.73
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20. Advances from customers
(1) Advances from customers
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Less than one year 163,287,428.35 171,535,281.84
1-2 years 1,088,567.76 880,087.04
2-3 years 5,000.00
Total 164,380,996.11 172,415,368.88
21. Wages payable
Unit: RMB Yuan
Item Period-end book balance Increase in current period Decrease in current period Period-end book balance
1. Wages, bonuses,
allowances and 9,119,169.68 19,364,998.36 23,578,499.84 4,905,668.20
subsidies
2. Employee welfare 0.00 348,976.86 298,500.30 50,476.56
3. Social insurance
8,207.77 1,407,645.47 1,408,111.13 7,742.11
premiums
4. Housing fund 813,907.70 696,479.23 1,369,213.68 141,173.25
5. Dismiss welfare 0.00 10,314.00 10,314.00 0.00
6. Others 714,921.99 1,942,619.92 2,020,282.36 637,259.55
Labor union
expenditures and
470,551.59 565,676.13 562,106.12 474,121.60
employee education
expenses
Others 244,370.40 1,376,943.79 1,458,176.24 163,137.95
Total 10,656,207.14 23,771,033.84 28,684,921.31 5,742,319.67
22. Taxes payable
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Value-added tax 4,284,239.51 6,626,464.51
Operating tax -2,623,541.51 -2,491,746.96
Enterprise income tax 16,122,877.50 8,570,624.36
Individual income tax 2,697,227.28 796,989.44
Urban maintenance and construction tax 253,106.27 421,024.77
Education surtax 136,159.90 287,617.80
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Item Period-end amount Period-beginning amount
Stamp tax and water conservancy fund 136,410.55 151,956.14
Housing property tax 854,033.10 863,293.67
Total 21,860,512.60 15,226,223.73
23. Dividends payable
Unit: RMB Yuan
Reason for not making payment for
Name of company Period-end amount Period-beginning amount
over one year
Weixingda Industry Co., Ltd. 475,200.00
Hangzhou Shenzhou Real Estate Co.,
158,400.00
Ltd.
SEG Bonded Co., Ltd. 79,200.00
China Electronic Appliance
158,400.00
(Shenzhen) Co., Ltd.
Shenzhen SEG Computers Co., Ltd. 444,510.00 365,310.00
Nanjing Shangsha Co., Ltd. 364,320.00 285,120.00
Shenzhen SEG Group Service Co.,
344,520.00
Ltd.
Individual shares 213,092.33 160,062.89
Others 70,223.27 70,223.27
A-shares 3,881.48 3,881.48
B-shares 45,698.54 45,698.54
Total 2,012,925.62 1,274,816.18 --
24. Other accounts payable
(1) Accounts payable
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
Less than one year 106,505,792.57 69,339,604.93
1-2 years 41,008,239.20 25,835,456.31
2-3 years 4,122,485.16 26,355,418.58
Over 3 years 8,842,719.98 21,194,721.95
Total 160,479,236.91 142,725,201.77
25. Estimated liabilities
Unit: RMB Yuan
Item Period-beginning Increase in current Decrease in current Period-end amount
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amount period period
Liquidated damages of
2,361,610.00 2,361,610.00 0.00
contract
Total 2,361,610.00 2,361,610.00
26. Other non-current liabilities
Unit: RMB Yuan
Item Period-end book balance Period-end book balance
Government subsidies to be recognized 791,163.55 320,080.91
Total 791,163.55 320,080.91
27. Share capital
Unit: RMB Yuan
Increase/decrease by (+) at current period
Period-beginning Capitalization Period-end
New share
amount Bonus share of public Others Total amount
offering
reserve
Total shares 784,799,010.00 0 0 0 0 0 784,799,010.00
28. Capital public reserve
Unit: RMB Yuan
Period-beginning Decrease in current
Item Increase in current period Period-end amount
amount period
Capital premium (share
322,015,117.44 322,015,117.44
premium)
(1) Other changes in owners'
equity of the invested
82,069,461.20 82,069,461.20
organization except net profit
and loss
(2) Profit or loss from changes
in the fair value of financial 280,300.34 114,238.75 166,061.59
assets available for sale
(3) Others 15,451.59 15,451.59
Total 404,380,330.57 114,238.75 404,266,091.82
Information on capital public reserve: The capital public reserve whose fair value of financial assets available for
sale is changed and added is that the fair value of the stock of the listed company Xinjiang Youhao (Group) Co.,
Ltd. (code: 600778) held by the Company's holding subsidiary Shenzhen SEG Baohua Electronics Co., Ltd. is
changed.
29. Surplus public reserve
Unit: RMB Yuan
122
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Period-beginning Decrease in current
Item Increase in current period Period-end amount
amount period
Statutory surplus reserve 102,912,835.67 102,912,835.67
Total 102,912,835.67 0.00 0.00 102,912,835.67
30. Retained profits
Unit: RMB Yuan
Item Amount Accrual/distribution rate
Before adjustment: retained profits of the end of
-96,419,229.99 --
last year
After adjustment: year-beginning retained profits -96,419,229.99 --
Plus: net profits of the current period attributable
39,674,066.28 --
to owners of the parent company
Retained profits at the period end -56,745,163.71 --
31. Operating revenue and operating cost
(1) Operating revenue and operating cost
Unit: RMB Yuan
Amount incurred in the previous reporting
Item Amount incurred in this reporting period
period
Main operating income 292,942,040.76 241,988,628.19
Operating cost 212,671,918.66 175,042,563.79
(2) Main business (by industry)
Unit: RMB Yuan
Amount incurred in the previous reporting
Amount incurred in this reporting period
period
Name of industry
Total operating
Operating cost Operating revenue Operating cost
revenue
Electronics market and property
181,741,183.28 116,124,886.47 158,889,463.01 98,955,816.93
operation
Trade 87,744,338.43 85,699,912.97 66,987,818.16 65,959,086.25
Hotel 9,785,721.14 7,111,851.56 8,425,425.54 6,665,455.52
E-commerce 210,938.39 2,571,957.86 2,475,490.66 2,839,487.13
Finance 13,459,859.52 1,163,309.80 5,210,430.82 622,717.96
Total 292,942,040.76 212,671,918.66 241,988,628.19 175,042,563.79
(3) Main business (by region)
Unit: RMB Yuan
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Amount incurred in the previous reporting
Amount incurred in this reporting period
period
Name of region
Total operating
Operating cost Operating revenue Operating cost
revenue
Shenzhen 212,564,655.73 144,778,340.20 174,649,987.00 118,802,619.84
Xi'an 24,752,116.45 18,129,611.48 22,094,387.39 16,626,615.86
Suzhou 23,027,258.40 18,848,356.52 18,136,242.91 14,423,396.20
Changsha 14,462,011.42 12,000,241.29 12,556,330.05 11,272,593.59
Nanjing 17,092,962.69 15,975,591.28 14,551,680.84 13,917,338.30
Shunde 1,043,036.07 2,443,053.42
Nanning 496,724.47
Total 292,942,040.76 212,671,918.66 241,988,628.19 175,042,563.79
(4) Operating revenue of top five customers of the Company
Unit: RMB Yuan
Proportion in the total operating revenue of the
Name of customer Main operating revenue
Company (%)
Shenzhen Runneng Digital
49,152,495.63 16.78%
Technology Co., Ltd.
Shenzhen Wodewo Trading Co.,
9,496,279.39 3.24%
Ltd.
Shenzhen South Yunhe Science
6,388,391.48 2.18%
and Technology Co., Ltd.
China Resources Vanguard Co.,
6,217,985.05 2.12%
Ltd.
Shenzhen Hongxuda
Communications Technology Co., 5,141,025.64 1.75%
Ltd.
Total 76,396,177.19 26.07%
32. Operating tax and surcharges
Unit: RMB Yuan
Amount incurred in the
Amount incurred in this
Item previous reporting Taxation standards
reporting period
period
Operating tax 10,202,386.91 8,796,693.62
Urban maintenance and construction
739,138.76 587,356.21
tax
Education surtax 499,494.49 320,436.01
Others 56,231.48 89,532.36
Total 11,497,251.64 9,794,018.20 --
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33. Investment income
(1) Details in investment income
Unit: RMB Yuan
Amount incurred in this reporting Amount incurred in the previous
Item
period reporting period
Long-term equity investment income by the equity
-2,549,638.57 117,154.53
method
Income from disposal of long-term equity
1,725,988.94
investments
Others 9,518,204.61 7,736,995.67
Total 8,694,554.98 7,854,150.20
(2) Long-term equity investment income by the equity method
Unit: RMB Yuan
Amount incurred in
Amount incurred in this Reason for increase or decrease from
Invested company the previous reporting
reporting period the previous period
period
Operating loss of the invested company
Shenzhen Huakong SEG Co., Ltd. -3,979,819.79 -475,507.86
in this reporting period
Shanghai SEG Electronics Market Co., Profit increase of the invested company
1,430,181.22 592,662.39
Ltd. in this reporting period
Shenzhen SEG New Urban
723,745.45 0.00 Newly invested enterprise
Construction Development Co., Ltd.
Total -2,549,638.57 117,154.53 --
34. Loss from asset impairment
Unit: RMB Yuan
Amount incurred in this reporting Amount incurred in the previous
Item
period reporting period
1. Loss from bad debt 317.40
14. Others 270,241.51 649,411.06
Total 270,241.51 649,728.46
35. Non-operating revenue
(1) Non-operating revenue
Unit: RMB Yuan
Amount recorded into
Amount incurred in this Amount incurred in the
Item current non-recurring profit
reporting period previous reporting period
and loss
Total profit from disposal of non-current 44,307.25 44,307.25
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assets
Including: profit from disposal of fixed
44,307.25 44,307.25
assets
Government subsidies 1,088,917.36 340,000.00 1,088,917.36
Accounts not required to be paid 112,126.00 1,116,961.25 112,126.00
Others 256,608.07 317,899.85 256,608.07
Total 1,501,958.68 1,774,861.10 1,501,958.68
(2) Details in government subsidies
Unit: RMB Yuan
Amount incurred in this Amount incurred in the
Item Note
reporting period previous reporting period
Shenzhen Special Fund for Internet
Service Innovation Support
Program and Shenzhen Futian
District Special Fund for Scientific 1,028,917.36 240,000.00
and Technological Development
Projects of the Industry
Development Program
Changsha Furong District Support
Fund of the Bureau of Commerce 60,000.00 100,000.00
and Trade
Total 1,088,917.36 340,000.00 --
36. Non-operating expenses
Unit: RMB Yuan
Amount recorded into
Amount incurred in this Amount incurred in the
Item current non-recurring
reporting period previous reporting period
profit and loss
Total loss from disposal of non-current assets 4,864.51 4,034.65
Including: loss from disposal of fixed assets 4,864.51 4,034.65 4,864.51
Including: charitable donation expenses
Abnormal loss 16,100.00
Compensation for loss of commercial tenants 0.00 1,848.00 0.00
Others 9,878.53 23,205.11 9,878.53
Total 14,743.04 45,187.76 14,743.04
37. Income tax
Unit: RMB Yuan
Amount incurred in this reporting Amount incurred in the
Item
period previous reporting period
126
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Income tax of the current period calculated according to tax
17,857,275.00 12,039,472.47
laws and relevant regulations
Deferred income tax -611,656.67 530,796.57
Total 17,245,618.33 12,570,269.04
38. Calculation process for basic EPS and diluted EPS
Amount incurred in Amount incurred in last
Item
current year year
Net profit attributable to common shareholders of the Company (P1) 39,674,066.28 31,621,212.01
Non-recurring profit and loss 784,116.91 856,137.80
Net profit attributable to common shareholders of the Company after deduction of
38,889,949.37 30,765,074.21
non-recurring profit and loss (P2)
Period-beginning shares in total (S0) 784,799,010.00 784,799,010.00
Shares increased because the capital public reserve is transferred as share capital or
share dividends are distributed (S1)
Shares increased because new shares are issued or liabilities are transferred as
shares (Si)
Shares decreased due to repurchases (Sj)
Shares reduced (Sk)
The number of months of this reporting period (M0)
The number of months from the next month after shares are increased to the end of
this reporting period (Mi)
The number of months from the next month after shares are decreased to the end of
this reporting period (Mj)
Weighted average of common shares (S1 = S0 + S1 + Si × Mi ÷M0 – Sj × Mj ÷
784,799,010.00 784,799,010.00
M0-Sk)
Net profit attributable to common shareholders of the Company
0.0506 0.0403
Basic earnings (= P1 ÷S1)
per share Net profit attributable to common shareholders of the Company
0.0496 0.0392
after deducting the non-recurring profit and loss (= P2 ÷S1)
Net profit attributable to common shareholders of the Company
(= [P1 + (Interests of the diluted latent common shares
recognized as expenses – Conversion expenses) × (1 – Income
0.0506 0.0403
tax rate)] / (S0 + S1 +Si ×Mi ÷M0 – Sk + Weighted average of
common shares increased by share warrants, share options and
Diluted earnings
convertible bonds))
per share
Net profit attributable to common shareholders of the Company
after deduction of non-recurring profit and loss (= [P2 + (Interests
of the diluted latent common shares recognized as expenses – 0.0496 0.0392
Conversion expenses) × (1 – income tax rate)] / (S0 + S1 + Si ×
Mi ÷M0 – Sk + Weighted average of common shares increased
127
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Amount incurred in Amount incurred in last
Item
current year year
by share warrants, share options and convertible bonds))
39. Other comprehensive income
Unit: RMB Yuan
Amount incurred in this reporting Amount incurred in the
Item
period previous reporting period
1. Profit (loss) from financial assets available for sale -228,774.91 94,665.48
Less: Influence of income tax incurred from financial assets
-57,193.73 23,666.37
available for sale
Total -171,581.18 70,999.11
40. Notes to the cash flow statement
(1) Other cash received concerning operating activities
Unit: RMB Yuan
Item Amount
Collection trusted (tenants payment) 215,716,892.36
Incomings and outgoings 94,283,804.87
Interest income 7,928,696.79
Non-operating revenue 12,763,699.96
Total 330,693,093.98
(2) Other cash paid concerning operating activities
Unit: RMB Yuan
Item Amount
Payment on behalf of others (tenants payment) 204,383,783.59
Incomings and outgoings 74,221,379.19
Cash expenses 34,541,121.19
Non-operating expenses 17,948.00
Total 313,164,231.97
41. Supplementary information on the cash flow statement
(1) Supplementary information on the cash flow statement
Unit: RMB Yuan
Supplementary information Amount of the current period Amount of the previous period
1. Reconciliation of net profit to cash flows of operating
-- --
activities:
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Net profit 48,280,238.35 37,918,630.15
Plus: asset impairment provision 270,241.51 649,728.46
Depreciation of fixed assets, oil & gas assets and
12,058,927.20 11,819,265.81
consumable biological assets
Amortization of intangible assets 124,334.16 101,388.59
Amortization of long-term expenses to be apportioned 6,546,672.01 5,011,944.93
Loss on disposal of fixed assets, intangible assets, and other
-39,442.74 4,034.65
long-term assets (Profit will be marked with "-")
Financial expenses (Profit will be marked with "-") -5,163,964.97 -5,185,253.01
Loss on investment (Profit will be marked with "-") -8,694,554.98 -7,854,150.20
Increase of deferred income tax liabilities (Decrease will be
-611,656.65 -530,796.57
marked with "-")
Decrease of inventories (Increase will be marked with "-") -86,684,560.34 -1,610,794.33
Decrease of operating accounts receivable (Increase will be
-36,544,249.27 -71,282,957.41
marked with "-")
Increase of operating accounts payable (Decrease will be
9,760,721.94 -24,497,396.81
marked with "-")
Others -4,680,596.16
Net cash flow arising from operating activities -60,697,293.78 -50,775,759.58
2. Investment and financing activities not Involving cash
-- --
receipts and payments:
3. Net change in cash and cash equivalents: -- --
Cash at the end of the period 421,888,702.77 579,166,521.47
Less: cash at the beginning of the period 453,132,467.18 644,439,198.78
Net increase in cash and cash equivalents -31,243,764.41 -65,272,677.31
(2) Information on acquiring or disposing subsidiaries or other business units in this reporting period
Unit: RMB Yuan
Amount incurred in this reporting Amount incurred in the previous
Supplementary information
period reporting period
I. Information on acquiring subsidiaries and other business
-- --
units:
3. Net cash paid for acquisition of subsidiaries and other
0.00
business units
II. Information on disposing subsidiaries or other business
-- --
units:
1. Price to dispose subsidiaries and other business units 255,000,000.00
2. Cash and cash equivalent received from disposal of
0.00
subsidiaries and other business units
Less: cash and cash equivalent held by subsidiaries and 4,594,318.82
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other business units
3. Net cash received from disposal of subsidiaries and other
0.00
business units
4. Net assets from disposal of subsidiaries 1,615,707.96 0.00
Current assets 7,116,638.82
Non-current assets 365,409.00
Current liabilities 3,504,729.86
Non-current liabilities 2,361,610.00
(3) Composition of cash and cash equivalents
Unit: RMB Yuan
Item Period-end amount Period-beginning amount
I. Cash 421,888,702.77 453,132,467.18
Including: cash on hand 12,250,395.56 405,448.11
Bank deposits available for payment at any time 409,638,307.21 452,714,780.24
Other monetary capital available for payment at any time 12,238.83
III. Ending balance of cash and cash equivalents 421,888,702.77 453,132,467.18
VIII. Related Parties and Relevant Transactions
1. Information on the parent company of the Company
Voting power The
Equity of the over the ultimate
Name of Registered
Type of Place of Legal Nature of Company Company controlling Organization
parent Relationship capital
enterprise registration representative business held by parent held by party of code
company （RMB Yuan）
company (%) parent the
company (%) Company
Shenzhen Limited
Controlling Sun 1,355,420,000.0 Shenzhen
SEG Group liability Shenzhen State-owned 30.24% 30.24% 19218093-0
shareholder Shengdian 0 SASAC
Co., Ltd. company
2. Information on subsidiaries of the Company
Registered
Full name of Type of Type of Place of Legal Nature of Share-holding Voting right Organization
capital
subsidiary subsidiary enterprise registration representative business proportion (%) proportion (%) code
(RMB Yuan)
Xi'an SEG
Limited
Electronics Share-controll Service
liability Xi'an Liu Zhijun 3,000,000 65% 65% 74283072-4
Market Co., ed subsidiary industry
company
Ltd.
Shenzhen Limited
Share-controll Service
SEG liability Shenzhen Liu Zhijun 3,000,000 70% 70% 77413117-8
ed subsidiary industry
Electronics company
130
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Registered
Full name of Type of Type of Place of Legal Nature of Share-holding Voting right Organization
capital
subsidiary subsidiary enterprise registration representative business proportion (%) proportion (%) code
(RMB Yuan)
Market
Management
Co., Ltd.
Suzhou SEG
Electronics Limited
Share-controll Service
Market liability Suzhou Zheng Dan 3,000,000 45% 45% 78205845-X
ed subsidiary industry
Management company
Co., Ltd.
Shenzhen
SEG Baohua Company
Share-controll Service
Enterprise limited by Shenzhen Zheng Dan 30,808,800 66.58% 66.58% 19219334-4
ed subsidiary industry
Development shares
Co., Ltd.
Shenzhen
Limited
SEG Industry Share-controll Service
liability Shenzhen Zhu Longqing 25,500,000 100% 100% 19219150-9
Investment ed subsidiary industry
company
Co., Ltd.
Changsha
Limited
SEG Share-controll Service
liability Changsha Zhu Longqing 35,000,000 46% 51% 616600581
Development ed subsidiary industry
company
Co., Ltd.
Shenzhen
Chengguo
Limited
Business Share-controll Service
liability Shenzhen Bo Hongxi 10,000,000 66.58% 66.58% 69556368-5
Hotel ed subsidiary industry
company
Management
Co., Ltd.
Shenzhen Limited
Share-controll
SEG Small liability Shenzhen Wang Li Finance 150,000,000 53.02% 53.02% 58792690-1
ed subsidiary
Loan Co., Ltd. company
Shenzhen
Limited
SEG Share-controll
liability Shenzhen Liu Zhijun E-commerce 48,000,000 51% 51% 56854637-2
E-Commerce ed subsidiary
company
Co., Ltd.
Shenzhen
SEG
(Nanjing) Limited
Share-controll Service
Electronics liability Nanjing Zhu Longqing 20,000,000 100% 100% 57158102-1
ed subsidiary industry
Market company
Management
Co., Ltd.
Xi'an Hairong Share-controll Limited Service
Xi'an Liu Zhijun 3,000,000 51% 51% 57843107-7
SEG ed subsidiary liability industry
131
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Registered
Full name of Type of Type of Place of Legal Nature of Share-holding Voting right Organization
capital
subsidiary subsidiary enterprise registration representative business proportion (%) proportion (%) code
(RMB Yuan)
Electronics company
Market Co.,
Ltd.
Wujiang SEG
Electronics Limited
Share-controll Service
Market liability Wujiang Zheng Dan 3,000,000 51% 51% 05353484-X
ed subsidiary industry
Management company
Co., Ltd.
Wuxi SEG
Limited
Electronics Share-controll Service
liability Wuxi Zhu Longqing 3,000,000 51% 51% 05662319-4
Market Co., ed subsidiary industry
company
Ltd.
Shunde SEG
Electronics Limited
Share-controll Service
Market liability Foshan Liu Dong 6,000,000 100% 100% 05856554-9
ed subsidiary industry
Management company
Co., Ltd.
Nantong SEG
Limited
Times Square Share-controll Service
liability Nantong Liu Zhijun 30,000,000 100% 100% 06320635-6
Development ed subsidiary industry
company
Co., Ltd.
Nanning SEG
Electronics Limited
Share-controll Service
Market liability Nanning Zhu Longqing 8,000,000 100% 100% 06885667-3
ed subsidiary industry
Management company
Co., Ltd.
3. Information on the joint ventures and associated enterprises of the Company
Name of the Registered Voting ratio in
Type of Place of Legal Nature of Shareholding Organization
invested capital the invested Relationship
enterprise registration representative business radio (%) code
company (RMB Yuan) company (%)
1. Joint ventures
2. Associated enterprises
Shenzhen
Huakong 896,671,500.0 Associated
Share-holding Shenzhen Huang Yu Manufacturing 22.45% 22.45% 27934648-9
SEG Co., 0 enterprise
Ltd.
Shanghai SEG
Electronic Limited
Service Associated
Market liability Shanghai Song Xun 5,000,000.00 35% 35% 72937044-4
industry enterprise
Operation company
Management
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Co., Ltd.
Shenzhen
SEG New
Urban Limited
Service Associated
Construction liability Shenzhen Liu Xin 13,880,000.00 20% 20% 71525759-8
industry enterprise
and company
Development
Co., Ltd.
4. Information on other related parties
Name of the related party Relationship with the Company Organization code
Shenzhen SEG Property Development Co.,
Subsidiary of the first majority shareholder 19227219x
Ltd.
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 19226803-5
Shenzhen SEG Real Estate Investment
Subsidiary of the first majority shareholder 19217633-3
Co., Ltd.
5. Related-party transaction
(1) Entrustment and contracting of related parties
Entrusted management/contracting of the Company
Unit: RMB Yuan
Recognized
Beginning date of Ending date of
Entrusting Entrusted Type of Pricing basis for entrustment/contr
the the
party/contracting party/Contracted entrusted/contract entrustment/contr acting profit in
entrustment/contr entrustment/contr
party party ed assets acting profit this reporting
acting acting
period
Not applicable
Form of the entrusted management/contracting of the Company
Unit: RMB Yuan
Beginning date of Ending date of Recognized
Entrusting Entrusted Type of Pricing basis for
the the entrustment/contr
party/contracting party/Contracted entrusted/contract entrustment/contr
entrustment/contr entrustment/contr acting fees in this
party party ed assets acting profit
acting acting reporting period
Huaqiang North
According to
Shenzhen SEG Shenzhen SEG SEG
January 31, 2011 March 31, 2014 market-fixed 0.00
Group Co., Ltd. Co., Ltd. Communications
price
Market
(2) Information on related-party leases
Leases of the Company
133
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Unit: RMB Yuan
Pricing basis for Lease profit
Type of leased Lease beginning
Name of lessor Name of lessee Lease ending date recognition of recognized in this
asset date
lease profit reporting period
Accepting leases of the Company
Unit: RMB Yuan
Lease charge
Type of leased Lease beginning Pricing basis for
Name of lessor Name of lessee Lease ending date recognized in this
asset date lease charge
reporting period
The warehouse
with its area of
According to
Shenzhen SEG Shenzhen SEG 809.26 square
April 1, 2013 March 31, 2014 market-fixed 275,550.00
Group Co., Ltd. Co., Ltd. meters on the 8th
price
floor of SEG
Plaza
(3) Guarantee of related parties
Unit: RMB Yuan
Whether the
Beginning date of Due date of
Guarantor Secured party Amount of guarantee guarantee is fully
guarantee guarantee
fulfilled
Shenzhen SEG Co., Shenzhen SEG
75,000,000.00 March 20, 2013 March 19, 2015 No
Ltd. Small Loan Co., Ltd.
Shenzhen SEG Co., Shenzhen SEG
30,000,000.00 June 24, 2013 June 23, 2015 No
Ltd. Small Loan Co., Ltd.
6. Accounts receivable from and payable to related parties
Accounts receivable from related parties
Unit: RMB Yuan
Period end Period beginning
Project name Related party
Book balance Bad debt provision Book balance Bad debt provision
Other accounts Shenzhen SEG Property
2,000.00 2,000.00
receivable Development Co., Ltd.
Shenzhen SEG Orient
Other accounts
Industrial Development Co., 443,910.00 443,910.00
receivable
Ltd.
Other accounts Shenzhen SEG Group Co.,
97,700.00 86,000.00
receivable Ltd.
Other accounts Shenzhen SEG Real Estate
279,751.44
receivable Investment Co., Ltd.
Accounts payable to related parties
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Unit: RMB Yuan
Project name Related party Period-end amount Period-beginning amount
Shenzhen SEG Group Service
Dividends payable 0.00 344,520.00
Co., Ltd.
Shenzhen SEG Computers
Dividends payable 444,510.00 365,310.00
Co., Ltd.
IX. Events Occurring after the Balance Sheet Date
1. Other events after the balance sheet date
In July 2013, the Company received the 2013 entrusted management fee of RMB 200,000 of Shenzhen SEG
Communications Market paid by Shenzhen SEG Group Co., Ltd.
X. Notes to 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 77.29% 7,163,876.44 100% 7,163,876.44 77.29% 7,163,876.44 100%
which bad debt
provision is separately
accrued
Accounts receivable for which bad debt provision is accrued by portfolio
Accounts receivable not
with an insignificant
amount individually, for
2,505,306.44 26% 1,785,306.44 71.26% 2,105,306.44 22.71% 1,785,306.44 84.8%
which bad debt
provision is separately
accrued
Total 9,669,182.88 -- 8,949,182.88 -- 9,269,182.88 -- 8,949,182.88 --
Type of accounts receivable
Accounts receivable with a significant amount individually, for which bad debt provision is separately accrued
√ Applicable Not applicable
Unit: RMB Yuan
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Percentage of
Content of accounts receivable Book balance Bad debt provision Reason for provision
provision (%)
The account cannot
Jiangsu Unicom 3,092,011.09 3,092,011.09 100% be recovered because
the duration is long.
The account cannot
Shenzhen Liyuanshun Industrial Co.,
1,906,865.35 1,906,865.35 100% be recovered because
Ltd.
the duration is long.
The account cannot
Shanghai Tianci Industrial Co., Ltd. 899,000.00 899,000.00 100% be recovered because
the duration is long.
The account cannot
Zhejiang Finance Information Paging
786,000.00 786,000.00 100% be recovered because
Center
the duration is long.
The account cannot
Sichuan Huiyuan Electronics Co., Ltd. 480,000.00 480,000.00 100% be recovered because
the duration is long.
Total 7,163,876.44 7,163,876.44 -- --
Accounts receivable in the portfolio, for which bad debt provision is accrued by the aging analysis method
Applicable √ Not applicable
Accounts receivable in the portfolio, for which the bad debt provision is accrued by the Percentage of Total
Accounts Receivable Outstanding Method
Applicable √ Not applicable
Accounts receivable in the portfolio, for which the bad debt provision is accrued by other methods
Applicable √ Not applicable
Accounts receivable not with an insignificant amount individually, for which bad debt provision is separately
accrued
Applicable √ Not applicable
(2) Organizations 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
Customer 1,906,865.35 Over 5 years 20.56%
Industrial Co., Ltd.
Shanghai Tianci
Customer 899,000.00 Over 5 years 9.69%
Industrial Co., Ltd.
Zhejiang Finance
Customer 786,000.00 Over 5 years 8.47%
Information Paging
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Center
Sichuan Huiyuan
Customer 480,000.00 Over 5 years 5.17%
Electronics Co., Ltd.
Total -- 7,163,876.44 -- 77.23%
2. Other accounts receivable
(1) Other 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
(%) (%) (%) (%)
Other accounts
receivable with a
significant amount
individually, for 17,508,951.82 10.61% 17,508,951.82 100% 17,508,951.82 23.44% 17,508,951.82 100%
which bad debt
provision is
separately accrued
Other accounts receivable for which bad debt provision is accrued by portfolio
Portfolio 1 1,404,564.02 0.85% 300.00 0.02% 1,697,505.86 2.27% 300.00 0.02%
Portfolio 2 131,404,083.47 79.66% 0.00 0% 46,177,342.13 61.83%
132,808,647.4
Subtotal of portfolios 80.52% 300.00 0.02% 47,874,847.99 64.1% 300.00
9
Other accounts
receivable with an
insignificant amount
individually, for 14,630,724.45 8.87% 8,214,957.02 56.15% 9,307,631.40 12.46% 8,214,957.02 88.26%
which bad debt
provision is
separately accrued
164,948,323.7
Total -- 25,724,208.84 -- 74,691,431.21 -- 25,724,208.84 --
6
Information on the type of other accounts receivable: Portfolio 1 includes other accounts receivable, for which
bad debt provision is accrued by the aging analysis method; Portfolio 2 includes normal guarantee deposit and
various cash deposit.
Other accounts receivable with a significant amount individually at the period end, for which bad debt provision
is separately accrued.
√ Applicable Not applicable
Unit: RMB Yuan
Content of other accounts Book balance Amount of bad debt Percentage of provision Reason
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receivable (%)
The account cannot be
Yangjiang Yuntong
8,530,276.35 8,530,276.35 100% recovered because the
Grease Co., Ltd.
duration is long.
The account cannot be
Shenzhen Lianjing Trade
5,697,287.51 5,697,287.51 100% recovered because the
Co., Ltd.
duration is long.
The account cannot be
Shenzhen Top Industry
3,281,387.96 3,281,387.96 100% recovered because the
Co., Ltd.
duration is long.
Total 17,508,951.82 17,508,951.82 -- --
Other accounts receivable in Portfolio 1, for which bad debt provision is accrued by the aging analysis method
√ Applicable Not applicable
Unit: RMB Yuan
Period-end amount Period-beginning amount
Duration of the Book balance Book balance
accounts
Proportion Bad debt provision Proportion Bad debt provision
Amount Amount
(%) (%)
Less than one year
Including: -- -- -- -- -- --
Less than one
1,398,564.02 99.57% 1,691,505.86 99.65%
year
Subtotal of the
accounts with a
1,398,564.02 99.57% 1,691,505.86 99.65%
duration of less
than one year
1-2 years 6,000.00 0.43% 300.00 6,000.00 0.35% 300.00
Total 1,404,564.02 -- 300.00 1,697,505.86 -- 300.00
Other accounts receivable in the portfolio, for which the bad debt provision is accrued by the Percentage of Total
Accounts Receivable Outstanding method
Applicable √ Not applicable
Other accounts receivable in the portfolio, for which the bad debt provision is accrued by other methods
Applicable √ Not applicable
Other accounts receivable not with an insignificant amount individually at the period end, for which bad debt
provision is separately accrued
Applicable √ Not applicable
(2) Shareholders holding more than 5% (inclusive) of the voting shares of the Company in the accounts
receivable in this reporting period
Unit: RMB Yuan
138
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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. 97,700.00 86,000.00
Total 97,700.00 86,000.00
(3) Organizations of top five other accounts receivable
Unit: RMB Yuan
Relationship with the Percentage in the total amount of
Name of company Amount Duration
Company other accounts receivable (%)
Nantong SEG Times Square Wholly-owned
80,298,553.79 Less than one year 48.76%
Development Co., Ltd. subsidiary
Shenzhen SEG Industry Wholly-owned
34,088,490.03 20.7%
Investment Co., Ltd. subsidiary
Changsha SEG Development Share-controlled
16,428,379.33 9.98%
Co., Ltd. subsidiary
Yangjiang Yuntong Grease Business related
8,530,276.35 Over 5 years 5.18%
Co., Ltd. organization
Shenzhen Lianjing Trade Co., Business related
5,697,287.51 Over 5 years 3.46%
Ltd. organization
Total -- 145,042,987.01 -- 88.08%
The Company collects Nantong SEG Times Square Development Co., Ltd. for the other accounts receivable
owed by the latter as the payment for possession of fund on the basis of annual interest rate of 12% commencing
from the date when the borrowing occurs.
(4) Other accounts receivable from related parties
Unit: RMB Yuan
Percentage in the total amount
Name of company Relationship with the Company Amount
of other accounts receivable (%)
Nantong SEG Times Square
Wholly-owned subsidiary 80,298,553.79 48.68%
Development Co., Ltd.
Shenzhen SEG Industry
Share-controlled subsidiary 34,088,490.03 20.67%
Investment Co., Ltd.
Changsha SEG Development
Share-controlled subsidiary 16,428,379.33 9.96%
Co., Ltd.
Shenzhen SEG Baohua
Share-controlled subsidiary 497,512.09 0.30%
Electronics Co., Ltd.
Shenzhen SEG Orient
Industrial Development Co., Associated enterprise 443,910.00 0.27%
Ltd.
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Shenzhen SEG Real Estate Subsidiary of controlling
279,751.44 0.17%
Investment Co., Ltd. shareholder
Shenzhen SEG Property Subsidiary of controlling
2,000.00 0.00%
Development Co., Ltd. shareholder
Total -- 132,038,596.68 80.05%
140
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3. Long-term equity investment
Unit: RMB Yuan
Notes on the occasion
where the proportion
Share-holding Impairment Cash
Voting ratio in of the shares of the
Invested Accounting Beginning Increase or proportion in Impairment provision dividends of
Investment cost Ending balance the invested invested organization,
company method balance decrease the invested provision accrued in the the current
company (%) held by the Company,
company (%) current period period
is not consistent with
the voting right
Shenzhen
Huakong SEG Equity method 215,645,740.56 111,200,021.06 -3,979,819.79 107,220,201.27 22.45% 22.45%
Co., Ltd.
Shanghai SEG
Electronics
Market
Equity method 1,750,000.00 8,110,001.78 706,435.77 8,816,437.55 35% 35%
Operation
Management
Co., Ltd.
Shenzhen SEG
New Urban
Construction
Equity method 2,776,000.00 3,499,745.45 3,499,745.45 20% 20%
and
Development
Co., Ltd.
Shenzhen SEG
Baohua
Enterprise Cost method 18,742,808.93 20,512,499.04 20,512,499.04 66.58% 66.58% 8,205,120.00
Development
Co., Ltd.
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Notes on the occasion
where the proportion
Share-holding Impairment Cash
Voting ratio in of the shares of the
Invested Accounting Beginning Increase or proportion in Impairment provision dividends of
Investment cost Ending balance the invested invested organization,
company method balance decrease the invested provision accrued in the the current
company (%) held by the Company,
company (%) current period period
is not consistent with
the voting right
Shenzhen SEG
Industry
Cost method 23,780,000.00 29,181,027.20 29,181,027.20 100% 100%
Investment Co.,
Ltd.
Shenzhen SEG
Telecom 2,979,217.2
Cost method 2,979,217.22 2,979,217.22 2,979,217.22 90% 90%
Equipment Co., 2
Ltd.
Shenzhen SEG
GPS Scientific
Cost method 8,275,321.43 13,515,392.83 13,515,392.83 12.5% 12.5%
Navigations
Co., Ltd.
Changsha SEG
Development Cost method 69,000,000.00 69,000,000.00 69,000,000.00 46% 51%
Co., Ltd.
Shenzhen SEG
Electronics
Market Cost method 2,100,000.00 2,100,000.00 2,100,000.00 70% 70% 1,330,000.00
Management
Co., Ltd.
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Notes on the occasion
where the proportion
Share-holding Impairment Cash
Voting ratio in of the shares of the
Invested Accounting Beginning Increase or proportion in Impairment provision dividends of
Investment cost Ending balance the invested invested organization,
company method balance decrease the invested provision accrued in the the current
company (%) held by the Company,
company (%) current period period
is not consistent with
the voting right
Suzhou SEG
Electronics
Market Cost method 1,350,000.00 1,350,000.00 1,350,000.00 45% 45% 1,935,000.00
Management
Co., Ltd.
Xi'an SEG
Electronics
Cost method 1,950,000.00 1,950,000.00 1,950,000.00 65% 65% 3,744,000.00
Market Co.,
Ltd.
Shenzhen SEG
Small Loan Cost method 54,000,000.00 54,000,000.00 54,000,000.00 36% 36%
Co., Ltd.
Shenzhen SEG
E-Commerce Cost method 15,300,000.00 15,300,000.00 15,300,000.00 51% 51%
Co., Ltd.
Shenzhen SEG
(Nanjing)
Electronics
Cost method 20,000,000.00 20,000,000.00 20,000,000.00 100% 100%
Market
Management
Co., Ltd.
143
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Notes on the occasion
where the proportion
Share-holding Impairment Cash
Voting ratio in of the shares of the
Invested Accounting Beginning Increase or proportion in Impairment provision dividends of
Investment cost Ending balance the invested invested organization,
company method balance decrease the invested provision accrued in the the current
company (%) held by the Company,
company (%) current period period
is not consistent with
the voting right
Xi'an Hairong
SEG
Electronics Cost method 1,530,000.00 1,530,000.00 1,530,000.00 51% 51%
Market Co.,
Ltd.
Wujiang SEG
Electronics
Market Cost method 1,530,000.00 1,530,000.00 1,530,000.00 51% 51%
Management
Co., Ltd.
Wuxi SEG
Electronics
Cost method 1,530,000.00 1,530,000.00 1,530,000.00 51% 51%
Market Co.,
Ltd.
Ningbo SEG
Digital Market
Cost method 2,550,000.00 2,550,000.00 -2,550,000.00 0.00 51% 51%
Management
Co., Ltd.
Shunde SEG
Electronics
Market Cost method 6,000,000.00 6,000,000.00 6,000,000.00 100% 100%
Management
Co., Ltd.
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Notes on the occasion
where the proportion
Share-holding Impairment Cash
Voting ratio in of the shares of the
Invested Accounting Beginning Increase or proportion in Impairment provision dividends of
Investment cost Ending balance the invested invested organization,
company method balance decrease the invested provision accrued in the the current
company (%) held by the Company,
company (%) current period period
is not consistent with
the voting right
Nantong SEG
Times Square
Cost method 30,000,000.00 30,000,000.00 30,000,000.00 100% 100%
Development
Co., Ltd.
Kashgar
Shenzhen City
Cost method 20,000,000.00 20,000,000.00 20,000,000.00 3.03% 3.03%
Investment Co.,
Ltd.
Nanning SEG
Electronics
Cost method 8,000,000.00 8,000,000.00 8,000,000.00 100% 100%
Market Co.,
Ltd.
2,979,217.2 15,214,120.0
Total -- 508,789,088.14 362,338,159.13 55,676,361.43 418,014,520.56 -- -- --
2 0
Information on long-term equity investment
145
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4. Operating revenue and operating cost
(1) Operating revenue
Unit: RMB Yuan
Amount incurred in the previous reporting
Item Amount incurred in this reporting period
period
Main operating revenue 74,311,894.64 63,626,986.74
Total 74,311,894.64 63,626,986.74
Operating cost 37,003,105.13 31,897,510.12
(2) Main business (by industry)
Unit: RMB Yuan
Amount incurred in the previous reporting
Amount incurred in this reporting period
Name of industry period
Total operating revenue Operating cost Total operating revenue Operating cost
Electronics markets and
74,311,894.64 37,003,105.13 63,626,986.74 31,897,510.12
property lease
Total 74,311,894.64 37,003,105.13 63,626,986.74 31,897,510.12
5. Investment income
(1) Details in investment income
Unit: RMB Yuan
Amount incurred in this reporting Amount incurred in the previous
Item
period reporting period
Long-term equity investment income by the cost method 15,214,120.00 10,118,249.71
Long-term equity investment income by the equity method -2,549,638.57 117,154.53
Income from disposal of long-term equity investments 2,550,000.00
Others 7,471,921.32 4,376,679.76
Total 22,686,402.75 14,612,084.00
(2) Long-term equity investment income by the cost method
Unit: RMB Yuan
Amount incurred in
Amount incurred in Reason for increase or decrease from
Invested company the previous
this reporting period the previous period
reporting period
Shenzhen SEG Electronics Market
1,330,000.00 350,000.00 Dividend
Management Co., Ltd.
Shenzhen SEG Baohua Enterprise
8,205,120.00 6,153,749.71 Dividend
Development Co., Ltd.
Xi'an SEG Electronics Market Co., Ltd. 3,744,000.00 2,489,500.00 Dividend
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Amount incurred in
Amount incurred in Reason for increase or decrease from
Invested company the previous
this reporting period the previous period
reporting period
Suzhou SEG Electronics Market
1,935,000.00 1,125,000.00 Dividend
Management Co., Ltd.
Total 15,214,120.00 10,118,249.71 --
(3) Long-term equity investment income by the equity method
Unit: RMB Yuan
Amount incurred in
Amount incurred in Reason for increase or decrease from
Invested company the previous
this reporting period the previous period
reporting period
Shenzhen SEG Samsung Co., Ltd. -3,979,819.79 -475,507.86 Operating loss
Shanghai SEG Electronics Market Operation
706,435.77 592,662.39 Operating profit
Management Co., Ltd.
Shenzhen SEG New Urban Construction and
723,745.45 Newly invested enterprise
Development Co., Ltd.
Total -2,549,638.57 117,154.53 --
6. Supplementary information on the cash flow statement
Unit: RMB Yuan
Amount of the previous
Supplementary information Amount of the current period
period
1. Reconciliation of net profit to cash flows of operating activities: -- --
Net profit 43,115,441.85 30,883,821.29
Plus: asset impairment provision 0.00 0.00
Depreciation of fixed assets, oil & gas assets and consumable
5,818,174.63 5,770,930.12
biological assets
Amortization of intangible assets 96,444.00 80,144.22
Amortization of long-term expenses to be apportioned 458,276.75 303,445.80
Loss on discard of fixed asset (Profit will be marked with "-") 4,034.65
Financial expenses (Profit will be marked with "-") -3,407,472.49 -784,915.43
Loss on investment (Profit will be marked with "-") -22,686,402.75 -14,612,084.00
Decrease of deferred income tax assets (Profit will be marked with
637,500.00
"-")
Increase of deferred income tax liabilities (Decrease will be marked
0.00
with "-")
Decrease of inventories (Increase will be marked with "-") 0.00
Decrease of operating accounts receivable (Increase will be marked -85,004,889.24 6,796,466.02
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Amount of the previous
Supplementary information Amount of the current period
period
with "-")
Increase of operating accounts payable (Decrease will be marked
-10,901,079.90 -16,987,898.98
with "-")
Others 0.00 -30,221.11
Net cash flow arising from operating activities -71,874,007.15 11,423,722.58
2. Investment and financing activities not Involving cash receipts
-- --
and payments:
3. Net change in cash and cash equivalents: -- --
Cash at the end of the period 272,164,192.77
Less: cash at the beginning of the period 456,964,321.24
Plus: cash equivalents at the end of the period 296,491,241.42 510,486,998.56
Net increase in cash and cash equivalents -24,327,048.65 -53,522,677.32
XI. Supplementary Information
1. Details in non-recurring profit and loss
Unit: RMB Yuan
Item Amount Note
Profit and loss from disposal of non-current assets (including the
39,442.74 Loss from disposal of fixed assets
write-off of assets depreciation reserves)
In this reporting period, the
holding subsidiaries received
Shenzhen Special Fund for
Internet Service Innovation
Support Program, Shenzhen
Government subsidiaries recorded into current profit and loss
Futian District Special Fund for
(except those closely related with corporate business and enjoyed 1,088,917.36
Scientific and Technological
by quotas according to national standards)
Development Projects of the
Industry Development Program,
and Changsha Furong District
Support Fund of the Bureau of
Commerce and Trade.
Other non-operating revenue and expenses except the Liquidated damages paid by
358,855.54
above-mentioned items commercial tenants
Less: influenced amount of income tax 82,843.78
Influenced amount of minority shareholders' equity (after tax) 620,254.95
Total 784,116.91 --
An explanation shall be made with regard to the Company's considerations for defining non-recurring profit and
loss according to the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their
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Securities to the Public – Non-recurring Profit and Loss and the reason of classifying the non-recurring profit
and loss listed in this Announcement as recurring one.
Applicable √ Not applicable
2. Differences of accounting data under Chinese and overseas accounting standards
(1) Differences in net profit and net assets in this financial report calculated based on international and
Chinese accounting standards
Unit: RMB Yuan
Net profit attributable to shareholders of the listed Net assets attributable to shareholders of the
company listed company
Amount of the current Amount of the previous Period-beginning
Period-end amount
period period amount
Based on Chinese accounting
39,674,066.28 31,621,212.01 1,235,232,773.78 1,195,672,946.25
standards
Adjusted items and amounts based on international accounting standards:
Based on international
39,674,066.28 31,621,212.01 1,235,232,773.78 1,195,672,946.25
accounting standards
(2) Differences in net profit and net assets in this financial report calculated based on overseas and
Chinese accounting standards
Unit: RMB Yuan
Net profit attributable to shareholders of the listed Net assets attributable to shareholders of the
company listed company
Amount of the current Amount of the previous Period-beginning
Period-end amount
period period amount
Based on Chinese accounting
39,674,066.28 31,621,212.01 1,235,232,773.78 1,195,672,946.25
standards
Adjusted items and amounts based on overseas accounting standards:
0.00 0.00 0.00 0.00
Based on overseas accounting
39,674,066.28 31,621,212.01 1,235,232,773.78 1,195,672,946.25
standard
3. Net ROE and EPS
Unit: RMB Yuan
Earnings per share
Profit in reporting period Weighted average ROE (%) Diluted earnings per
Basic earnings per share
share
Net profit attributable to common shareholders
3.26% 0.0506 0.0506
of the Company
Net profit attributable to common shareholders
3.2% 0.0496 0.0496
of the Company after deduction of
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non-recurring profit and loss
4. Abnormal conditions of main items of the financial statements of the Company and related reasons
Percentage of
Item June 30, 2013 December 31, 2012 Reasons for change
change (%)
Bills falling due were honored in this
Notes receivable 200,000.00 -100.00%
reporting period.
The agent procurement business of SEG
Accounts receivable 20,469,376.74 10,742,406.91 90.55% Industry was expanded in this reporting
period.
Other accounts Subsidiaries paid security deposits in this
26,874,111.15 18,231,238.23 47.41%
receivable reporting period.
The subsidiary Nantong SEG purchased land
Inventory 89,399,683.88 2,715,123.54 3,192.66% in this reporting period for the construction of
the Nantong SEG Times Square Project.
Financial assets The market value of the held stocks dropped
422,960.51 651,735.42 -35.10%
available for sale in this reporting period.
The subsidiary Nanjing SEG expanded its
Construction in progress 973,898.44 185,086.00 426.19% project construction in the second and third
phases in this reporting period.
The expenditure on office software licensing
Intangible assets 869,594.06 453,282.22 91.84% in this reporting period formed intangible
assets.
The subsidiaries reduced their final inventory
Accounts payable 2,332,035.90 4,011,377.73 -41.86% estimates to be recorded into account in this
reporting period.
Wages and bonus accrued in last year were
Wages payable 5,742,319.67 10,656,207.14 -46.11%
paid in this reporting period.
Profit was increased over the same period of
Taxes payable 21,860,512.60 15,226,223.73 43.57% last year in this reporting period, increasing
the income tax payable.
The dividends payable that have not been
paid to the minority shareholders by
Dividends payable 2,012,925.62 1,274,816.18 57.90%
subsidiaries were increased in this reporting
period.
The held 100% equity of Ningbo Digital was
Estimated liabilities 0 2,361,610.00 -
disposed in this reporting period.
The subsidiary SEG E-Commerce received
Other non-current special governmental subsidy in this
791,163.55 320,080.91 147.18%
liabilities reporting period and the recognized deferred
income increased.
The net profit attributable to the parent
Retained profits -56,745,163.71 -96,419,229.99 -41.15%
company increased.
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(2) Changes in business performance
Unit: RMB Yuan
January to June January to June Percentage of
Item Reasons for change
2013 2012 change (%)
The subsidiary SEG Industry expanded its
channel business in this reporting period,
Operating expenses 141.80% increasing the charges for services provided
1,290,509.28 533,710.91
by third parties and overstock freight for
goods.
The accrued ordinary loan loss provision of
Loss from asset
-58.41% the subsidiary SEG Small Loan reduced in
impairment 270,241.51 649,728.46
this reporting period.
In this reporting period: ① The brand
royalties and management fees from newly
Operating profit 31.34%
64,038,641.04 48,759,225.85 entrusted management markets increased;②
The profit from small loan service increased.
The loss from disposal of fixed assets in this
Non-operating expenses -67.37% reporting period reduced over the same
14,743.04 45,187.76
period of last year.
The total amount of profit increased in this
Income tax 37.19% reporting period, increasing the taxable
17,245,618.33 12,570,269.04
income.
The profit of the holding subsidiaries SEG
Profit and loss of Small Loan and Changsha SEG increased in
36.66%
minority shareholders 8,606,172.07 6,297,418.14 this reporting period, increasing the gains of
the minority shareholders.
Other comprehensive The market value of the held stocks dropped
-341.67%
income (171,581.18) 70,999.11 in this reporting period.
Total comprehensive The net profit attributable to the minority
income attributable to 35.24% shareholders increased in this reporting
8,548,829.64 6,321,146.04
minority shareholders period.
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Chapter 9 Catalogue of Files Available for Future Reference
1. The Financial Statements with signatures and seals of the legal person, the responsible person of accounting
work and the responsible person of the accounting institution; and
2. 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 this reporting period
The Board of Directors
of Shenzhen SEG CO.,LTD.
August 13, 2013
152