Abstract of 2016 Annual Report of Shenzhen SEG Co., Ltd.
Stock code: 000058, 200058 Stock abbreviation: SHEN SEG, SHEN SEG B Notice No.:2017-027
Abstract of 2016 Annual Report of Shenzhen SEG Co., Ltd.
I. Important Notice
The abstract of 2016 annual report is excerpted from the full text of 2016 annual report. For more details about the operating result,
financial condition and future development planning, investors shall read carefully the said full text published on the designated
media by China Securities Regulatory Commission (CSRC).
Statement of objections by directors, supervisors and senior executives
Name Position Content and reason
Statement
Except the following directors, all directors attended in person the meeting of the Board of Directors and reviewed the annual report.
Name of director not present in Position of director not present Reason for being not present in
Name of agent
person in person person
Notice of non-standard audit opinions
□ Applicable √ Not applicable
Proposal for profit distribution of common shares or proposal for transfer of capital reserves to share capital in the report period
reviewed by the Board of Directors
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends or bonus shares nor transfer reserves into share capital.
The resolution of the Board of Directors passed the Proposal for profit distribution of preferred shares in the report period.
□ Applicable □ Not applicable
II. Company Profile
1. Basic Information
Stock abbreviation SHEN SEG, SHEN SEG B Stock code 000058, 200058
Listed on Shenzhen Stock Exchange
Secretary of the Board of Directors Securities affairs representative
Name Zheng Dan Zhang Xin
31/F, Tower A, Stars Plaza, Huaqiang Road (N), Futian 31/F, Tower A, Stars Plaza, Huaqiang Road
Contact address
District, Shenzhen (N), Futian District, Shenzhen
Phone 0755-83747939 0755-83747939
Fax 0755-83975237 0755-83975237
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Abstract of 2016 Annual Report of Shenzhen SEG Co., Ltd.
E-mail segcl@segcl.com.cn segcl@segcl.com.cn
2. Main Business or Product in the Report period
(1) Main business and operation model
Main business of the Company includes development and operation of electronic market and supporting projects,
property lease service, trade and channel service, e-commerce, value-added microcredit service, and hotel service
and so on. In terms of business structure, the Company’s electronics market, property lease and service and trade
are the main sources of the business income, at the same time, the operation of financial business remains stable.
At present stage, the booming of e-commerce under Internet has impacted on the traditional electronics
market to certain extent, thus the transaction share of physical electronics market has been squeezed. As the
operation of electronics market is facing certain pressure, so the Company’s pursuing strategic transformation and
upgrading becomes a necessary selection.
(2) Current situation and tendency of industrial development and industrial position of the Company
① Current situation of development of the electronics market is as follows:
A. The industrial value chain of the electronics market is extended and the market functions are diversified.
With the improvement of modernized communication technology and information transmission approaches, the
cost for connecting transaction information between consumers and manufacturers decreases gradually, and the
functions of the electronics market in commodity gathering, distribution and transactions are being weakened. At
present, the electronics market has abandoned the earliest "vendor booth" model of operation, and is extending
vertically toward the two ends of the value chain of the electronic information industry, from only serving the
distributors to providing services in enterprise image and product image display and promotion to manufacturers,
providing sales service to distributors and providing platform comprehensive services to consumers before, during
and after sales.
Extension of the Industrial Value Chain of the Electronics Market
Manufacturer:
enterprise image Distributor: Consumers:
and product image product sales services before,
display and service during and after
promotion service sales
At the same time, in the electronics market, facilities including water, electricity, warehousing, transportation,
packaging, security, fire control, health, settlement, information, and life services have been improved. The
functions of the electronics market have changed from traditionally unitary commodity gathering, distribution and
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Abstract of 2016 Annual Report of Shenzhen SEG Co., Ltd.
transaction to commodity gathering and distribution, information release, price discovery and comprehensive
services.
B. Tendency of industrial integration is intensified.
Faced with the industrial reform, in order to strengthen the competitiveness, the electronics market has formed
modern integrated logistics and services that are mainly represented by overseas transportation and bonded
warehousing, foreign trade, agency sales and property leasing. Whereas the traditional electronics market has such
weaknesses as high property cost, high transportation pressure and insufficient logistics supporting infrastructures,
the new generation electronics market focuses on innovation in the traditional operation model, provides various
services to both buyers and sellers, creates advanced distribution center for electronic components and IT terminal
products, strengthens logistics service, develops service trade for electronic manufacture industry, and builds a
distribution operation center of electronic products integrating property leasing and service, logistics and
distribution, information and financial services.
C. Intelligent terminal products, especially 3C products including mobile phones and tablet devices become main
operating products.
Technical improvements brought by mobile Internet technology and touch technology have facilitated the
migration of intelligent devices from desk devices to mobile devices, represented mainly by smart phones and
tablet computers. With the construction of mobile Internet infrastructure and development and improvement of the
Internet ecological system including software and hardware, the consumption market of smart phones and tablet
computers has been fast-developing. Intelligent terminal devices have gradually become the main operating
products in the electronics market, and will further facilitate the development of the latter.
D. Tendency of products expanding to emerging application fields is intensified.
In recent years, with the fast development of industries including wearable devices, intelligent household and
automotive electronics, types of products distributed in the electronics market gradually expand to the emerging
application field, meanwhile the booming development of the emerging market of electronic information industry
will strongly drive the increase of demands for electronic components.
E. Reform occurs in commercial property management of electronics market.
Operation of commercial properties refers to the industry that acquires long-term rental income and supporting
service income by leasing properties or providing management services. The property industry in China is
developing, improving and getting mature. As improvement of management and service concepts is advocated
now, competition of quality concept and brand concept, changes of market environment, application of high and
new technologies and updating of consumption ideas request the property operation enterprises to make relevant
reform from service concepts to service methods, from operation concepts to market positioning. Therefore, the
commercial operation of the electronics market will gradually develop from the previously traditional electronic
product transaction platform and leasing platform to diversified businesses including comprehensive maker
business, culture and education, intelligent technology, sports and entertainment, virtual experience, e-sports and
financial services.
F. Influences from e-commerce on operation and management of physical markets
In recent years, the transaction volumes and the number of markets and booths in electronics markets with the
sales volume exceeding RMB 100 million have decreased mainly due to the influence from e-commerce on
physical markets. As the promotion of mobile terminal consumption, household consumption and all kinds of life
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Abstract of 2016 Annual Report of Shenzhen SEG Co., Ltd.
services are overheating in the online market. Therefore, it is imperative for electronics markets to transform to
both online and offline platform operation model.
② Analysis on industrial development tendency of nationwide electronics markets
Electronics markets play an important role in the circulation of IT products. The booming electronic information
industry has brought a huge space for growth. With the fast development of e-commerce, network devices and
logistics industry in China in recent years, physical electronics markets have been affected to a certain extent,
traditional electronics markets are facing both the opportunity and the challenge of transformation and upgrading.
During the "13th Five-year Plan" period, the electronics markets in China will develop in the following tendencies:
A. Electronics markets will focus on both physical markets and e-commerce
At present, e-commerce economy under Internet has entered into a new normal state. The slow-down of growth
has triggered the reform of channel relationship. However, because the physical electronics markets feature
production operation, supply logistics service and realistic consumption experience that are different from
e-commerce, the latter has gradually carried out cooperation with electronics markets, which is an inevitable
tendency of the development of the industry.
B. Integrated and interactive development of electronics markets and commercial real estate
In recent years, the profit model of electronics markets is changing. On one hand, electronics markets are
combined with commercial real estate. Through total packaging, operation and promotion of commercial real
estate, the formation of IT business circle is accelerated, and the real estate projects where the electronics markets
are located increase in value. On the other hand, the appreciation of real estate where the electronics markets are
located will further improve the brand value of the electronics markets. Therefore, more and more merchants
praise highly of the operation model of interactive development by utilizing electronics markets to increase the
value of the surrounding properties further driving the development of the electronics markets.
The integrated and interactive development of electronics markets and commercial real estate can ensure the
long-term stable operation of the markets, and electronics markets can directly benefit from the income from real
estate appreciation brought by market operation, which facilitates the expansion of enterprises and the growth of
brands.
C. Electronics markets are facing upgrading and renovation and manufacturers of famous electronic brand are
seeking for joint development with electronics markets.
The popularization of consumable electronic products has made the electronics markets the buyer's market. The
consumers have higher requirements on the shopping environment, quality warranty and after-sale guarantee. The
operators of the electronics markets must continuously improve internal management, service, and shopping
environment, normalize the merchants' operation behaviors, and improve after-sale service guarantee system to
attract more consumers.
At the same time, the intensified competition among manufacturers of famous electronic brands will further
strengthen the integration. The control of the manufacturers over the downstream fields will be strengthened, and
they will continuously adjust agencies and the distributors, which will affect the adjustment of the electronics
markets. At present, the electronics markets focus more and more on of manufacturer resources. By various
approaches including expanding market scale, improving shopping environment and improving service standard,
the markets focus on improving the popularity and brand influences of the market brands in the mind of the
consumers, so as to get more resources of manufacturer resources.
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Abstract of 2016 Annual Report of Shenzhen SEG Co., Ltd.
D. Electronics markets will remain the dominant sales channel of IT products in China
Domestic channels of retail market of electronic products mainly include electronics markets, chain stores of
electrical household appliances, retailers with own properties, e-commerce and department stores and
supermarkets. Most retailers of electronic products carry out operation and sales in the electronics market, which
maintains large market shares by relying on such advantages as the most complete categories of products, fast
updating, large operation area and comfortable shopping environment. The retailers have chosen electronics
markets with brand popularity as their main platform for operation in order to improve the sales and coverage
width to consumers and improve the sales efficiency.
On the other hand, the electronics market is also the main product display platform for many manufacturers of
electronic products. By setting up flagship stores or experience stores in the electronics markets, manufacturers
can help consumers timely and easily know about their latest products, and display the enterprise image.
According to the investigation data from Electronics Market Committee of China Electronics Chamber of
Commerce, the electronics market will remain the main sales channel for domestic electronic products in the
future. The percentage of sales volume of electronic products including desktops, laptops, mobile phones, tablet
computers and intelligent hardware sold through electronics markets in the total domestic retail volume will
remain over 50%.
③ Industrial position of the Company
In terms of operation of electronics markets, as the founder of the electronics market operation model of China,
the Company is leading in the industry. The Company has established nearly 30 electronics markets in China by
means of direct operation, joint operation and entrusted operation, has formed a chain system of electronics
markets covering Pearl River Delta, Yangtze River Delta and radiating the whole country, and has gained high
brand influence both at home and abroad.
3. Main Accounting Data and Financial Indexes
(1) Main Accounting Data and Financial Indexes in the Recent Three Years
Are retrospective adjustments made to previous financial statements due to accounting policy changes or
accounting errors?
□ Yes √ No
Unit: yuan
Year-on-year
2016 2015 2014
increase/decrease
Operating income 672,384,276.47 741,533,676.93 -9.33% 681,343,920.99
Net profit attributable to shareholders of
107,560,213.41 74,242,090.49 44.88% 48,380,294.05
the listed company
Net profit attributable to shareholders of
the listed company after deduction of 29,705,359.63 84,931,560.68 -65.02% 45,920,252.23
non-recurring gains and losses
Net cash flow arising from operating
-120,030,057.68 -12,453,523.82 -427,933,620.94
activities
Basic EPS (Yuan/Share) 0.1371 0.0946 44.93% 0.0616
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Abstract of 2016 Annual Report of Shenzhen SEG Co., Ltd.
Diluted EPS (Yuan/Share) 0.1371 0.0946 44.93% 0.0616
Weighted average ROE 7.11% 5.19% 1.92% 3.80%
Year-on-year
End of 2016 End of 2015 End of 2014
increase/decrease
Total assets 2,548,276,265.32 2,614,660,524.37 -2.54% 2,659,717,718.28
Net assets attributable to shareholders of
1,548,200,647.55 1,475,126,229.16 4.95% 1,298,970,719.85
the listed company
(2) Major Quarterly Financial Indexes
Unit: Yuan
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Operating income 191,126,945.65 171,546,291.20 139,478,273.85 170,232,765.77
Net profit attributable to shareholders of the
17,696,110.04 9,160,160.38 15,422,191.47 65,281,751.52
listed company
Net profit attributable to shareholders of the
listed company after deduction of 17,623,939.70 11,072,519.77 15,912,414.05 -14,903,513.89
non-recurring gains and losses
Net cash flow from operating activities -30,744,760.42 -68,569,267.98 15,886,231.75 -36,602,261.03
Are there any significant differences between the financial indexes or their totals in the preceding table and those
described in the disclosed quarterly reports or semi-annual reports?
□ Yes √ No
4. Information on Shareholders
(1) Number of ordinary shareholders and number of preferred shareholders restored with the voting rights,
and information on top 10 shareholders
Unit: Share
Total number
of preferred
shareholders
Total number of restored with
Total number of ordinary Total number of the voting
ordinary shareholders at the preferred rights at the
shareholders at the 76,108 end of the month 73,299 shareholders 0 end of the 0
end of the report immediately before restored with the month
period the disclosure of the voting rights immediately
annual report before the
disclosure of
the annual
report
Information on top 10 shareholders
Name of shareholder Nature of shareholder Shareholding Shares held Quantity of Information on pledged or
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Abstract of 2016 Annual Report of Shenzhen SEG Co., Ltd.
percentage restricted frozen shares
shares held Share status Quantity
Shenzhen SEG Group
State-owned legal person 30.24% 237,359,666 0
Co., Ltd.
Liu Guocheng Domestic natural person 0.87% 6,804,502 0
GF Securities Co., Ltd. -
Baoying Rui Feng
innovative and flexible Others 0.56% 4,361,800 0
configuration hybrid
securities investment fund
Zhang Jiao Domestic natural person 0.52% 4,046,989 0
Liu Guohong Domestic natural person 0.42% 3,300,558 0
Gong Qianhua Overseas natural person 0.37% 2,940,000 0
Zeng Ying Domestic natural person 0.29% 2,300,000 0
Domestic
China Securities Finance
non-state-owned legal 0.29% 2,271,900 0
Corporation Limited
person
Wu Guixiang Domestic natural person 0.24% 1,898,801 0
NORGES BANK Overseas legal person 0.24% 1,890,226 0
Shenzhen SEG Group Co., Ltd has no association relationship with other
Explanations on the association relationship or shareholders, nor it is a concerted action unit as described by the Management
concerted action among the above-mentioned Methods for Disclosure of Information on Changes of Shareholding Status of
shareholders Shareholders of Listed Companies It is unknown whether other shareholders
have an association relationship or are concerted action units or not.
Among the above top 10 shareholders, Zhang Jiao holds 0 shares of the
Information on shareholders participating in Company by the ordinary account and 4,046,989 shares by the credit account
financing business (if any) of the securities margin trading investor, totaling 4,046,989 shares of the
Company.
(2) Number of preferred shareholders, and information on top 10 preferred shareholders
□ Applicable √ Not applicable
In the report period, no preferred shareholders hold shares.
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Abstract of 2016 Annual Report of Shenzhen SEG Co., Ltd.
(3) Block diagram of the property rights and controlling relationship between the Company and its actual
controller
5. Information on corporate bonds
Has the Company issued and listed on the stock exchange corporate bonds that are not due or due but cannot be
repaid in full on the approved release data of the annual report?
No
III. Management Discussion and Analysis
1. Overview
Should the Company abide by the disclosure requirements of special industries?
No.
In the report period, the global economy, affected by such events as slow-down of economic growth in USA and
Brexit, is in downturn of growth. Affected by complicated and severe international and domestic environment, the
economic growth and transformation of China is still under the downturn pressure.
Facing the complicated external economic environment and fierce market competition, the Company has actively
promoted major assets restructuring in 2016. In this way, the Company has acquired such core operating assets
held by the controlling shareholders as the quality electronics market, property management, and commercial real
estate, which will enhance and stabilize the operating results of the Company. The income from investment in the
real estate development project in the major assets restructuring will also enhance the profitability of the Company.
The Company has also strengthened efforts on resource integration, transformation and upgrading through the
major assets restructuring, vigorously developed innovative business, and looked for new profit growth point to
constantly enhance the core competitiveness of the Company.
In the report period, the Company achieved the operating income of RMB 760,910,000, decreasing by 10% year
on year. The main reasons of decrease are: (1) the operating income from electronics market and property lease
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Abstract of 2016 Annual Report of Shenzhen SEG Co., Ltd.
plates declined; (2) due to the program of replacing business tax with value-added tax, the total income of the
Company decreased by around RMB 19,000,000; and (3) the operating income of microcredit business decreased.
In the report period, the Company achieved total profit as much as RMB 187,540,000, increasing by 31.08% year
on year. The main reason for the increase is: the investment income of the Company from sales of the equity of
Huakong SEG and SEG E-commerce.
2. Are there significant changes in main business in the report period?
□ Yes √ No
3. Information on products accounting for over 10% of operating income or operating profit
□ Applicable √ Not applicable
4. Are there seasonal or cyclical characteristics of the operation needing special attention?
□ Yes √ No
5. Notes to significant changes in the operating income, operating costs, total net profit attributable to
common shareholders of the listed company, or composition in the report period over the previous report
period
√Applicable □ Not applicable
Unit: Yuan
Closing balance (or Opening balance (or
Cause
Item Amount of this Amount of last Change rate
in the report period
period) period)
This item decreased because of the slide of
income from electronics market operation and
Total operating lease business and the fall of the Company’s
672,384,276.47 741,533,676.93 -9.33%
total income derived from the influence from
income
the reform of replacing business tax with
value-added tax.
This item deceased because of the influence
from the interest rate being adjusted downward
Interest income 67,560,598.14 101,205,806.40 -33.24%
in microcredit industry and the policy of
replacing business tax with value-added tax.
Service charges and This item increased because SEG Credit
commissions 20,970,211.25 3,936,401.00 432.73% provided financing service so to receive the
income commissions income.
The corresponding cost also decreased because
Operating cost 582,494,679.95 618,062,716.19 -5.75%
the operating income reduced.
The interest expenses decreased because SEG
Interest expenses 3,004,288.89 5,599,355.64 -46.35%
Credit borrowed less fund.
This tiem decreased because of the influence
from the reform of replacing business tax with
Tax and surtax 18,517,765.23 27,804,172.86 -33.40%
value-added tax and the reduction of business
tax actually happened.
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Abstract of 2016 Annual Report of Shenzhen SEG Co., Ltd.
This item increased beasue Nantong Times
Plaza started trial operation and sales expenses
Sales expenses 13,846,141.59 4,585,434.23 201.96%
happened in newly-established Suzhou SEG
Intellegent Technology Co., Ltd.
This item increased because of the service fee
Management
60,042,027.31 44,222,779.09 35.77% paid to the agency for the major asset
expenses
restructuring.
This item changed because SEG Credit
confirmed the balance of accrued provisions in
the report period according to the provisions
Loss from asset
-3,476,898.53 5,095,364.09 system of loan risk, and wrote off the difference
impairment
when the impairment that had been withdrawn
in the previous period exceeded the impairment
that should be withdrawn in the period.
This item increase because the Company
Income from decreased the stock rights held in Huakong
99,145,904.44 17,647,493.77 461.81%
investment SEG and disposed the stock rights held in the
subsidiary SEG E-commerce.
Non-operating This item increased because Nantong Times
10,897,524.02 2,367,546.40 360.29%
income Plaza received subsidies from the government.
This item decreased because the estimated
Non-operating obligation had been withdrawn in the previous
4,366,432.31 14,687,757.38 -70.27%
expenses year for Nanning SEG for litigation
compensation.
This item increased because the Company
decreased the stock rights in Huakong SEG and
Total profit 187,536,901.73 143,068,568.26 31.08% disposed the stock rights held in the subsidiary
SEG E-commerce, leading the increase of
investment income.
This item increased because the Company’s
Income tax 45,306,572.11 35,099,837.65 29.08%
total profit rose year on year.
This item increased comprehensively because
Net profit 142,230,329.62 107,968,730.61 31.73%
of the above factors.
This item increased because of the above
Net profit attributive
107,560,213.41 74,242,090.49 44.88% factors after deducting the profit and loss
to the parent company
attributable to minority shareholders.
6. Information on Listing Suspension or Delisting
□ Applicable √ Not applicable
7. Information on Financial Report
(1) Information on changes in accounting policies, accounting estimates and accounting methods compared
with the financial reports of the last year
√ Applicable □ Not applicable
The Ministry of Finance issued the VAT Accounting Treatment Rules (C. K. [2016] No. 22) on December 3, 2016.
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Abstract of 2016 Annual Report of Shenzhen SEG Co., Ltd.
According to the VAT Accounting Treatment Rules, after the program of replacing business tax with value-added
tax is put into trial implementation, "business tax and surtax" is changed to "tax and surtax", relating to the
accounting of the consumption tax, urban maintenance and construction tax, resource tax, educational surtax,
property tax, land use tax, travel tax, and stamp duty incurred by business operation; the "business tax and surtax"
in the profit statement is changed to "tax and surtax".
As specified in the VAT Accounting Treatment Rules, the closing debit balance of "VAT payable", "unpaid VAT",
"input tax to be deducted, "input tax to be certified", and "excess VAT paid" under the "tax payable" item shall be
presented in "other current assets" or "other non-current assets" of the balance sheet statement as the case may be;
the closing debit balance of "tax payable-output tax to be transferred" shall be presented in "other current
liabilities" or "other non-current liabilities" of the balance sheet statement as the case may be.
In accordance with the VAT Accounting Treatment Rules, the Company has adjusted the amount of affected items
in the financial statements, such as assets, liabilities, profit and loss arising from transactions from May 1, 2016 to
the implementation of the Rules. The property tax, land use tax, travel tax, and stamp duty incurred after May 1,
2016 are adjusted from "management fee" to "tax and surtax" RMB 4,775,904.89; "tax payable-deductible input
VAT" are classified in "other current liabilities" with the amount of RMB 350,217.26; the amount of transactions
occurring from January 1 to April 30, 2016 is not subject to retroactive adjustment; financial statements (2016) in
the comparable period are not subject to retroactive adjustment.
(2) Information on retroactive restatements in corrections of major accounting errors in the
report period
□ Applicable √ Not applicable
There is no retrospective restatement due to corrections on significant accounting errors in the report period.
(3) Information on changes in the scope of consolidation compared with the financial report of
the last year
√ Applicable □ Not applicable
Twenty-three entities are included in the current consolidated financial statements, namely:
Type of Proportion of Proportion of voting
Company name Level
subsidiary shareholding (%) right (%)
Shenzhen SEG Baohua Enterprise Development Co., Holding
I 66.58 66.58
Ltd. subsidiary
Holding
Shenzhen Mellow Orange Business Hotel
grandson II 66.58 66.58
Management Co., Ltd
company
Wholly-owned
Shenzhen SEG Industrial Investment Co., Ltd. I 100.00 100.00
subsidiary
Holding
Changsha SEG Development Co., Ltd. I 46.00 51.00
subsidiary
Shenzhen SEG Electronics Market Management Co., Share-controlled
I 70.00 70.00
Ltd. subsidiary
Suzhou SEG Electronics Market Management Co., Holding I 45.00 45.00
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Abstract of 2016 Annual Report of Shenzhen SEG Co., Ltd.
Type of Proportion of Proportion of voting
Company name Level
subsidiary shareholding (%) right (%)
Ltd. subsidiary
Holding
Xi'an SEG Electronics Market Co., Ltd. I 65.00 65.00
subsidiary
Holding
Shenzhen SEG Credit Co., Ltd. I 54.00 54.00
subsidiary
Shenzhen SEG Electronics Market Management Co., Wholly-owned
I 100.00 100.00
Ltd. subsidiary
Holding
Xi'an Hairong SEG Electronics Market Co., Ltd. I 51.00 51.00
subsidiary
Wujiang SEG Electronics Market Management Co., Holding
I 51.00 51.00
Ltd. subsidiary
Holding
Wuxi SEG Electronics Market Co., Ltd I 51.00 51.00
subsidiary
Shunde SEG Electronics Market Management Co., Wholly-owned
I 100.00 100.00
Ltd. subsidiary
Nanning SEG Electronics Market Management Co., Wholly-owned
I 100.00 100.00
Ltd. subsidiary
Wholly-owned
Nantong SEG Times Plaza Development Co., Ltd. I 100.00 100.00
subsidiary
Holding
Yantai SEG Times Plaza Development Co., Ltd. I 90.00 90.00
subsidiary
Nantong SEG Commercial Operation Management Wholly-owned
I 100.00 100.00
Co., Ltd. subsidiary
Wholly-owned
Suzhou SEG Digital Plaza Management Co., Ltd. I 100.00 100.00
subsidiary
Xi'an Fengdong New Town SEG Times Plaza Wholly-owned
I 100.00 100.00
Properties Co., Ltd. subsidiary
Suzhou SEG Intelligent Technology Co., Ltd. Wholly-owned
I 100.00 100.00
subsidiary
Shenzhen SEG Longyan New Energy Application Holding
and Development Co., Ltd. I 50.00 50.00
subsidiary
Shenzhen SEG Investment Management Co., Ltd. Wholly-owned
I 100.00 100.00
subsidiary
Shenzhen SEG Longyan Energy Technology Co., Holding
Ltd. I 50.00 50.00
subsidiary
For the cause of difference between the proportion of shareholding and the proportion of voting rights and the
basis for control of the invested entity even with half of voting rights or less, see "Attachment 9: Equities in other
entities - (1) Equities in subsidiaries".
Compared with the previous period, three more entities are included in and one entity is excluded from the
consolidated financial statements in the current period, including:
Subsidiaries, special purpose entities, and business entities that gain control by way of commissioning management or
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Abstract of 2016 Annual Report of Shenzhen SEG Co., Ltd.
renting included in the consolidation scope in the current period
Name Reason for change
Suzhou SEG Intelligent Technology Co., Ltd. Newly established
Shenzhen SEG Longyan New Energy Application
Newly established
and Development Co., Ltd.
Shenzhen SEG Longyan Energy Technology Co.,
Newly established
Ltd.
Subsidiaries, special purpose entities, and business entities that lose control by way of commissioning management or
leasing excluded from the consolidation scope in the current period
Name Reason for change
Shenzhen SEG E-Commerce Co., Ltd. Transfer-out of all equities
For details of entity change in the consolidation scope, see "Note VIII. Change in consolidation scope".
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