Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
Stock code: 000058, 200058 Stock abbreviation: SHEN SEG, SHEN SEG B Notice No.: 2021-013
Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
I. Important Notice
The abstract of 2020 Annual Report is excerpted from the full text of 2020 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).
All directors other than the following directors have attended the meeting of the Board of Directors and deliberated
the annual report.
Position of director not
Name of director not present Reason for absence Name of proxy
present
Gao Jian Bai Director For work Zhang Liang
Zhang Jian Director For work Zhang Liang
Notice of non-standard audit opinions
□ Applicable √ Not applicable
Proposal for profit distribution of common shares or proposal for transfer of capital reserves into share capital during
the reporting period deliberated by the Board of Directors
√Applicable □Not applicable
Transfer of capital reserves to share capital
□ Yes √ No
Profit distribution plan for the common shares deliberated and approved by the Board of Directors: distribute a cash
bonus of 0.1 yuan (tax included) to all shareholders for every 10 shares based on 1,235,656,249 shares, 0 bonus
shares(tax included) and no common reserves transfer into share capital either.
Proposal for profit distribution of preferred shares during the reporting period adopted in the resolution of the Board
of Directors
□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
Contact Information Secretary of the Board of Directors Securities affairs representative
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Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
Name Peng Aiyun Xiang Qianqian
31/F, Tower A, Stars Plaza, Huaqiang Road 31/F, Tower A, Stars Plaza, Huaqiang Road
Office address
(N), Futian District, Shenzhen (N), Futian District, Shenzhen
Fax 0755-83975237 0755-83975237
Phone 0755-83747939 0755-83741808
E-mail segcl@segcl.com.cn xiangqq@segcl.com.cn
2.Main Business or Products Profile During the Reporting Period
In 2020, the company's main business included market circulation business centered on the
communications market and electronic professional market, smart city and city services business
centered on property management and management services, and strategic emerging business centered
on inspection and testing and new energy.
3. Main Accounting Data and Financial Indexes
(1) Main Accounting Data and Financial Indexes in Recent Three Years
Are retrospective adjustments made to previous financial statements?
□Yes √No
In RMB
Year-on-year
2020 2019 2018
increase/decrease
Operating income 1,403,665,817.37 1,493,227,561.06 -6.00% 1,605,787,472.11
Net profit attributable to
shareholders of the listed 25,924,861.87 78,447,278.89 -66.95% 27,852,740.23
company
Net profit attributable to
shareholders of the listed
-23,361,507.86 -1,694,690.46 -1,278.51% 17,223,506.49
company after deduction of
non-recurring profit and loss
Net cash flow from operating
243,544,355.42 430,499,191.36 -43.43% 167,674,153.73
activities
Basic EPS (Yuan/share) 0.0210 0.0635 -66.93% 0.0225
Diluted EPS (yuan/share) 0.0210 0.0635 -66.93% 0.0225
Weighted average ROE 1.37% 4.17% -2.80% 1.47%
Increase/decrease at
the end of current
Year-end of 2020 Year-end of 2019 Year-end of 2018
year over the end of
last year
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Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
Total assets 5,830,977,104.07 6,190,598,894.81 -5.81% 7,128,009,738.20
Net assets attributable to
shareholders of the listed 1,905,722,149.42 1,899,384,178.95 0.33% 1,867,881,216.44
company
(2) Quarterly Main Accounting Data
In RMB
Q1 Q2 Q3 Q4
Operating income 192,164,935.58 584,728,114.87 301,827,368.72 324,945,398.20
Net profit attributable to -67,393,857.05
shareholders of the listed -11,787,492.80 70,858,321.63 34,247,890.09
company
Net profit attributable to -77,490,928.28
shareholders of the listed
-18,662,797.99 59,340,958.96 13,451,259.45
company after deduction of
non-recurring profit and loss
Net cash flow from operating
-30,503,048.76 81,027,122.88 102,532,507.71 90,487,773.59
activities
Whether there are significant differences between the above-mentioned financial index or its total number and the
relevant financial index disclosed in the company’s quarterly report and semi-annual report
□Yes √No
4. Share Capital and Shareholders
(1) Number of Common Shareholders and Number of Preferred Shareholders Restored with
The Voting Rights, and Information on Top 10 Shareholders
In Share
Total number of
Total number of preference
Total number of
Total number of common stock shareholders with
preference
common stock shareholders at voting rights
shareholders with
shareholders at end of the recovered at end
76,438 72,992 voting rights 0 0
the end of the previous month of the previous
recovered at end of
reporting before the month before the
reporting period (if
period disclosure date of disclosure date of
any)
the annual report the annual report
(if any)
Shareholders holding more than 5% of the shares or the top 10 shareholders
Name of Nature of Sharehold Number Changes Number Number of Information on pledged or frozen
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Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
shareholder shareholder ing of shares of shares of shares shares
proportio held at during the restricted without
n period-en reporting shares restriction
Share status Quantity
d period held
(+,-)
Shenzhen SEG State-owned legal 700,618,7 450,857,2 249,761,5
56.70% 0 / /
Group Co., Ltd. person 59 39 20
LI SHERYN Overseas natural
0.73% 9,063,952 7,110,852 0 9,063,952 / /
ZHAN MING person
Domestic natural
Liu Guocheng 0.59% 7,250,502 94,700 0 7,250,502 / /
person
Domestic natural
Hou Xiulan 0.41% 5,100,000 5,100,000 0 5,100,000 / /
person
Domestic natural
Yang Fan 0.33% 4,087,000 4,087,000 0 4,087,000 / /
person
Domestic natural
Liu Guohong 0.28% 3,402,503 84,405 0 3,402,503 / /
person
Overseas natural
Gong Qianhua 0.24% 2,940,000 0 0 2,940,000 / /
person
Hong Kong
Overseas legal
Securities Clearing 0.19% 2,384,525 2,384,525 0 2,384,525 / /
person
Company Ltd.
Domestic natural
Xu Yueying 0.16% 1,972,000 72,000 0 1,972,000 / /
person
Domestic natural
Yu Yangyong 0.12% 1,516,900 1,516,900 0 1,516,900 / /
person
Strategic investors or general legal
persons become the top 10
N/A
shareholders due to the placement of
new shares (if any)
Shenzhen SEG Group Co., Ltd has no association with other shareholders, nor it is a
Explanations on the association
concerted action unit as set forth in the Management Methods for Disclosure of Information
relationship or concerted action among
on Changes in Shares Held by Shareholders of the Listed Company. It is unknown whether
the above-mentioned shareholders
other shareholders have an association or are concerted action units or not.
(2) Number of Preferred Shareholders and Shares Held by Top 10 Preferred Shareholders
□ Applicable Not applicable
In the reporting period, preferred shareholders do not hold shares.
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Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
(3) Property Rights and Rontrol Relationship Between the Company and Actual Controller
in Form of a Block Diagram
Shenzhen SASAC
100%
7.7922%
100%
Shenzhen State- China Orient China Great Wall Shenzhen
100% Shenzhen Shenzhen Capital
owned Equity Asset Asset Kunpeng Equity
Investment Holdings Co.,
Management Co., Management Co., Management Co., Investment Co.,
Holding Co., Ltd. Ltd.
Ltd. Ltd. Ltd. Ltd.
4.75% 38.1% 26.12% 13.72% 9.80% 7.51%
Shenzhen SEG Group Co., Ltd.
56.70%
Shenzhen SEG Co., Ltd.
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?
Yes.
(1) Basic Information on Corporate Bonds
Bond Bond balance
Bond name Bond code Offering date Maturity date Interest rate
abbreviation (RMB 10,000)
Corporate bonds
publicly issued by
Shenzhen SEG Co., Ltd.
18 SEG 01 112836.SZ 2018-12-25 2021-12-25 70,000 4.60%
to qualified investors in
2018 （1st issue）
（category I）
(2) Latest Tracking Rating and Rating Changes of Corporate Bonds
CSCI Pengyuan Credit Rating Co., Ltd. issued the “2020 Tracking Credit Rating Report on 2018 Public Offering of
Corporate Bonds to Qualified Investors（1st issue）（category I and II) of Shenzhen SEG Co., Ltd. (hereinafter
referred to as the “Tracking Credit Rating Report”) on June 22, 2020, the credit rating of the “18 SEG 01” and “18
SEG 02” bonds maintained at AAA, and the long-term credit rating of the company’s main body maintained at AA,
the rating outlook remained stable. The results of this tracking rating have not changed from the previous rating
results. For details of the Tracking Credit Rating Report, please refer to the company’s announcement published on
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Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
www.cninfo.com.cn on June 24, 2020.
(3) Main Accounting Data and Financial Index in Latest Two Years as of the End of the
Reporting Period
In 10,000 Yuan
Rate of change over the same
Item 2020 2019
period
Asset-liability ratio 57.44% 59.45% -2.01%
EBITDA - total debt ratio 17.37% 24.28% -6.91%
Interest coverage ratio 1.69 2.55 -33.73%
III. Operation Discussion and Analysis
1. Brief Introduction of the Operation During the Reporting Period
During the reporting period, facing of the sudden impact of the COVID-19 epidemic, the company focused on
epidemic prevention and safety on the one hand, and production and operation on the other hand, and implemented
comprehensive reforms oriented to promoting business development, which further improved the level of
corporate governance. Through strict safety and epidemic prevention control and delicacy management, the
electronic professional market was the first to resume work and production, continued to improve the service
quality and customer experience of the electronic professional market, promoted the transformation and
development of the electronic professional market, and consolidated the industry position of the electronic
professional market. The company resolved the operating risks of SEG New City and Xi'an Kanghong through
special efforts and achieved phased progress; the independently developed 600KN super-large electromagnetic
vibration test system has passed the third-party inspection, marking that the company has successfully ranked
among the forefront in the field of inspection and testing vibration; in response to the national policy of "carbon
neutralizing and carbon peaking", actively promoted new energy business development, completed the acceptance
of Hangzhou production line, and steadily developed the photovoltaic application business.
The company has implemented the "electronic market +" strategy, supported by the professional electronic market,
property management and management services, and through a combination of reform and innovation, investment
and mergers and acquisitions, and independent cultivation, it has actively transformed to a strategic emerging
industry development platform, and continued to improve and strengthen the company's core competitiveness and
sustainable development capabilities to achieve the company's high-quality development.
During the reporting period, the company completed a total operating income of 1,403.67 million yuan, a
year-on-year decrease of 89.56 million yuan, falling 6%; realized a total profit of 71.18 million yuan, a
year-on-year decrease of 127.78 million yuan, falling 64.23%. The main reason for the changes in income was that
the Company implemented the decision and deployment of rent reduction by Shenzhen Municipal Committee &
Government, rent reduction or exemption during the reporting period was 115.16 million yuan. After the reduction
in rent, the company’s income up slightly on a year-on-year basis; in addition to the above rent reductions, the
main reason for the change in total profit was that the sales of financial equity decreased and the associated
enterprises suffered year-on-year losses, and the investment income decreased by 89.26 million yuan on a
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Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
year-on-year basis. Excluding the above effects, total profit increased year-on-year.
(1) Electronic Market Circulation
The company's electronic market circulation business covers two major brands, i.e., SEG electronics market and
SEG communications market. There are more than 20 companies with holdings, shareholdings, and authorized
operations, with a total operating area of more than 350,000 square meters. Among them, the holding electronic
markets mainly include Shenzhen SEG Electronics Market, SEG Communications Market, Xi’an SEG, Changsha
SEG, Xi’an Hairong SEG, Nanjing SEG, Wujiang SEG, Shenzhen Longgang SEG, Shunde SEG, etc.
During the reporting period, in the face of the impact of the COVID-19 epidemic, the company effectively
assumed the responsibility for epidemic prevention, fully organized epidemic prevention and control work,
formulated epidemic prevention and control plans and emergency plans, and all employees rushed to the front line
to do their best to ensure customers, materials, and operations. The company built a solid line of defense for
epidemic prevention and control at the operation frontline of electronic professional market, took the lead in
promoting the resumption of production and work in the electronic professional market, and ensured that the
electronic professional market and the company's properties maintain stable operation. There was no case of
COVID-19 infection throughout the year, and the “Red Tent” action carried out by the company in Huaqiangbei
Electronics Street was reported by CCTV News, providing a reference for the resumption of production and work
across the country. During the epidemic, the company’s various businesses represented by the electronic market
circulation business faced great pressure on operating performance, but the company still actively responded to the
national call, resolutely implemented the spirit of the municipal party committee and municipal government
documents, and implemented rent reduction and exemption twice for eligible tenants, accumulatively reduced rents
by 115 million yuan, and the company overcame the difficulties with merchants and demonstrated the
responsibility of state-owned enterprises.
During the reporting period, the company complied with the changes in market consumption habits, gradually
extended to the upstream and downstream of the industrial chain based on the existing electronic market
circulation business, accelerated the integration of new business formats, and gradually built a modern
comprehensive electronic professional market in which multiple formats coexisted with consumer experience as
the core, maintained the stable operation of the electronic market circulation business, and continued to promote
the transformation and upgrading of the electronic market circulation business.
(2) Smart Cities and Urban Services (including Real Estate Development)
During the reporting period, the company steadily promoted the adjustment of industrial structure, accelerated the
removal of existing inventories and made breakthrough progress. At the same time, the company vigorously
developed smart city and urban service business driven by "technological innovation and high-quality service",
deepened user value through refined and standardized management, enhanced customer experience, and continued
to promote the improvement of urban service business service quality. In 2020, the company continued to expand
new businesses and completed the acquisition of Xindongsheng Property on the basis of overcoming the impact of
the epidemic and achieving stable and safe operations by strengthening team building, creating a positive and
pioneering cultural atmosphere, establishing an efficient communication mechanism and a positive incentive
assessment mechanism, the newly increased property service management area exceeded 10 million square meters,
and the scale of operation and management, service quality, core competitiveness, and brand influence continued
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Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
to increase.
The company seized the historical opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area, the
company actively made layout at optical fiber sensing, smart parking and other smart city businesses, and
gradually transformed to a service provider for a better life in a comprehensive smart community with technology,
digitization and intelligence through independent research and development, introduction of talents and
technologies, and school-enterprise cooperation.
The Company Needs to Comply with the Disclosure Requirements of the "Shenzhen Stock
Exchange Industry Information Disclosure Guidelines No. 3 - Listed Companies Engaged in
Real Estate Business"
A. Macro economy and market situation analysis
During the reporting period, the central government’s policy of “housing residence instead of vicious speculation”
remained unchanged. In the first half of the year, due to the impact of the COVID-19 epidemic, the economy faced
greater downward pressure, the real estate market in some second and third tier cities fell to some extent, the
central fiscal and monetary policies worked together, and the real estate market rapidly recovered under the loose
monetary environment. In the second half of the year, real estate regulation and control policies somewhat shifted.
The central government emphasized that real estate should not be used as a short-term economic stimulus means,
the real estate financial supervision continued to be strengthened by stabilizing land prices, house prices, and
expectations, and the "three red lines" pilot was implemented. At the same time, some first-tier cities have
successively upgraded their regulatory policies to stabilize housing prices and promote the rational return of the
market.
B. Regional market analysis of major projects
The company's real estate projects are currently mainly in Shenzhen, Huizhou, Xi'an and Nantong.
Shenzhen: In 2020, the total supply of commercial and office properties in Shenzhen was 1,942,800 square meters.
The increase in supply brought more options for commercial and office properties, and rents were lowered by a
larger margin compared with the peak periods. In the medium to long term, with the implementation of the
Guangdong-Hong Kong-Macao Greater Bay Area and Shenzhen's pilot demonstration zone policies, Shenzhen's
six major headquarters bases are gradually taking shape, and the supply and demand of Grade A office leasing may
be reversed. (Data source: Statistic data from Shenzhen Touchstone Real Estate Appraisal and Consultancy Co.,
Ltd.)
Huizhou: Due to the large inventory base of Huizhou commercial and office properties, the sales progress has been
slow, and the overall supply has exceeded demand. Under the influence of the epidemic, the property market in
Huizhou was in a stagnant stage, coupled with the continued tightening of policies and financial environment, the
demand for office products in the Huizhou market has plummeted, and the destocking cycle for commercial
property has been further extended. (Data source: Centaline Property)
Xi'an: On the demand side, the market was relatively flat due to the impact of the epidemic in the first half of the
year; the market picked up in the second half of the year, with a number of large-scale transactions driving new
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Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
rental demand, and net absorption turned from negative to positive. The city's Grade A office buildings had a net
absorption of approximately 147,000 square meters, which was basically the same as in 2019. (Data source:
Savills’ report on "Xi'an Real Estate Market Review and Future Prospects in 2020")
Nantong: In 2020, Nantong's real estate investment grew rapidly, project funds were abundant, project
development was relatively active, new construction area grew rapidly, and the sales area of commercial housing
increased slightly on a year-on-year basis. The real estate market in Nantong has maintained a steady
development trend against the background of the full spread of urban construction, the continuous implementation
of various plans, and the still positive market expectations. (Data source: Nantong City Statistics Bureau).
C. New land reserve projects
N/A
D. Accumulated land reserve
N/A
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Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
E. Development of main projects
Total
Area accumulat
Cumulat
complete Estimated total ed
City/ Equi Gross ive
Type of Construction Development Land area d during investment amount investmen
Regi Project Location ty floor area complet
operation date progress (㎡) the (10,000 Yuan t amount
on ratio (㎡) ed area
period( ) (10,000
(㎡)
㎡) Yuan
)
Huizhou SEG Commerci
Huiz 69.5 Under
Holiday Plaza Huizhou al, 2020-3-31 8,225 23,030 0 0 28,160 18,494.38
hou 4% construction
(Phase II) apartment
Commerci
Xi’an
Xi’an SEG al, office 43.4 Under
Xi’an High-Tech 2014-12-1 23,014.90 206,374 0 0 210,000 48,479.00
Plaza and 6% construction
Zone
apartment
Note: The schedule of the Xi 'an project has been delayed compared with the original expectation, mainly due to the tightening of policies in the real estate industry, the increasing
pressure of project construction funds and the increasing development risks. SEG Property intends to transfer its 55% stake in Xi 'an SEG Kanghong, found more to the “Publicly
Listed Transfer of 55% Equity of Xi’an SEG Kanghong Property Co., Ltd by Controlling Subsidiary and Involving the Related Transactions” published on Juchao Website dated 4
July 2020. The project is being officially listed on the Shenzhen United Property and Share Rights Exchange.
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Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
F. Sales of main projects
Amount of
Settlement
Accumul Pre-sale pre-sale
Area Accumulati Settlemen amount for
Equit Gross ated (sales) (sales) for
City/Reg Type of availabl ve t area for the period
Project Location y floor pre-sale area for the period
ion operation e for settlement the period (10,000
ratio area (sales) the period (10,000
sale (㎡) area (㎡) (㎡) Yuan
area (㎡) (㎡) Yuan
)
)
Office,
Shenzhe SEG New City Plaza logistics, 61.12 65,906.7
Shenzhen 105,874 105,874 7,319.27 28,408.15 65,487.44 8,586.69 30,346.32
n (Phase II) commercial % 3
and apartment
Logistics,
Shenzhe SEG New City Plaza commercial 61.12 10,465.3
Shenzhen 72,563 72,563 - - 10,465.30 - -
n (Phase I) and supporting % 0
dormitory
Oriental Venice Garden 69.54
Huizhou Huizhou Residential 219,470 256,349 243,375 761.48 926.83 243,242.03 1,360.03 1,369.35
(Phase I, II) %
Huizhou SEG Holiday 69.54 38,517.0
Huizhou Huizhou Commercial 73,761 92,233 656.02 825.65 38,479.51 964.51 1,199.66
Plaza (Phase I) % 2
Nantong SEG Time Commercial 100,529. 67,653.8 19,471.7
Nantong Nantong 100% 6,123.52 7,734.42 17,513.36 5,970.03 6,574.95
Square office 20 5 2
G. Rental of main projects
During the reporting period, the company experienced some fluctuations in property leasing due to the impact of COVID-19. The company has achieved the overall stale operation of
property leasing through methods such as reducing the rents and fees, refined standardized management and strict epidemic prevention and control.
H. Primary land development
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Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
□ Applicable Not applicable
I. Financing channel
Financing balance at Financing cost ranges/Average Term structure
Financing channel
period-end financing cost Within one year 1-2 years 2-3 years Over 3 years
Bank loans
-mortgage loan 13,000 6.86% 10-year
-mortgage loan 16,400 5.225% 5-year
-mortgage loan 4,125 5.4625% 5-year
-mortgage loan 18,500 7.301% 7-year
-mortgage loan 26,000 7.056% 15-year
Note
Bonds
Non-bank loans
Trust financing
Fund financing
Other
Total 78,025
J. Development strategy and business plan for the coming year
plans to increase the Relevant financing
Start up schedule Panned selling conditions
land reserves arrangement
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Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
N/A Huizhou SEG Holiday Plaza project (Phase II) 1. Sales plan of SEG New City: completed the sales area of 458.21 ㎡ for apartments N/A
is expected to completed in 2021 with 100% and achieved a clearance sales;
progress of main structure and construction 2. Sales plan of Huizhou SEG: (1) SEG Holiday Plaza project (Phase II) is expected to
works, and 90% progress of water and obtain a pre-sale license and officially sell at the end of 2021; (2) SEG Holiday Plaza
electricity installation. project (Phase I) plans to sell an office building area of 2,490.35 ㎡; (3) SEG Holiday
Plaza project (Phase I) plans to sell 301 parking spaces.
3. Sales plan of Nantong SEG: completed sales of approximately 4,910 ㎡ office
products in No.1-3 Tower Building
K. Providing guarantee to commercial property purchasers for the bank mortgages
Applicable □Not applicable
In 10,000 Yuan
External guarantee
Whether
Whether
the
it is a
perform
Disclosure date of the Actual date of occurrence Actual guarantee
Guarantee ance has
Guarantee object announcement related (date of signing the guarantee Type of guarantee Guarantee period for
amount been
to guarantee amount agreement) amount related
complet
parties
ed
(Y/N)
(Y/N)
Two years from the
SEG New City- Mortgage guarantee date of expiration of
clients of CITIC Bank (Shenzhen Joint liability the performance
2017-5-26 26,000.00 2017-7-6 0.00 Y N
Zhaocheng Investment Group Co., guarantee period of the debt
Ltd.) under the main
contract
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Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
SEG New City-House purchasing Joint liability
2016-8-4 30,000.00 2016-5-6 2,651.00 10-year N N
clients (Bank of Communication) guarantee
SEG New City-House purchasing Joint liability
2016-8-4 50,000.00 2016-5-6 1,736.00 10-year N N
clients(China Merchants Bank) guarantee
SEG New City-House purchasing Joint liability
2016-8-4 30,000.00 2016-5-6 809.00 10-year N N
clients (Bank of China) guarantee
SEG New City-House purchasing No maximum Joint liability
2017-8-29 2017-2-7 88.00 5-year N N
clients (China Construction Bank) limit guarantee
Nantong SEG- House purchasing Joint liability
2018-9-22 1,000.00 2018-7-10 130.00 Not exceed ten years N N
clients (Rural Commercial Bank) guarantee
Nantong SEG-House purchasing
Joint and several
clients (Shanghai Pudong 2018-9-22 7,000.00 2018-7-10 906.00 Not exceed ten years N N
guarantee
Development Bank)
Nantong SEG-House purchasing Joint and several
2018-9-22 700.00 2018-7-10 38.00 Not exceed ten years N N
clients (Industrial Bank) guarantee
L. Directors, Supervisors and Senior Executives co-invests with the listed company (applicable to the directors, supervisors and senior executives of the listed company as the
investment body)
□ Applicable Not applicable
M. Progress of the related commercial real estate business during the reporting period
(a) Nantong SEG Time Square Project
During the reporting period, main business of the Nantong SEG is inventory sales, and achieved 6,123.52 ㎡ subscribed sales area. By the end of December 2020, Nantong SEG has
achieved a total subscribed sales area of 19,471.72 ㎡.
(b) SEG New City Plaza Project
During the reporting period, SEG New City Plaza (Phase II) has achieved a subscribed sales area of 7,319.27 ㎡. As of the end of December 2020, SEG New City Plaza (Phase II) has
achieved a total subscribed sales area of 65,906.73 ㎡. The logistic property of SEG New City and Building 2, Phase I have signed a sales contract. Found more to the “Announcement
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Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
on Signing of the Material Contracts for Daily Operations” published on Juchao Website dated 26 May 2020.
(c) Huizhou Stars SEG Holiday Plaza Project
The Huizhou Stars (Phase II) is progressing as planned during the reporting period and the main project pile foundation construction has been completed.
(d) Xi’an SEG Plaza Project
During the reporting period, according to the strategic layout, the company actively promoted the transfer of Xi’an SEG Plaza. Found more to the “Publicly Listed Transfer of
55% Equity of Xi’an SEG Kanghong Property Co., Ltd by Controlling Subsidiary and Involving the Related Transactions” published on Juchao Website dated 4 July 2020. The
project is being officially listed on the Shenzhen United Property and Share Rights Exchange.
(3) Strategic Emerging Industries
The company's strategic emerging industries mainly include inspection and testing business and new energy business.
During the reporting period, the company's inspection and testing business independently developed the 600KN super-large electromagnetic vibration test system, as well as the
program design, modeling verification and analysis of the high-low cycle composite high-cycle fatigue test system for aero-engine blades, of which the 600KN super-large
electromagnetic vibration test system passing the third-party inspections and going into use signified that the company has successfully ranked among the forefront in the field of
inspection, testing and vibration, and the company's core competitiveness has continued to increase; at the same time, the company's use of independent technology to provide
high-quality services for China Aerospace has been recognized.
During the reporting period, the company responded to the country’s “carbon peaking and carbon neutralizing” policy, adjusted its new energy business operation strategy, vigorously
developed the construction of distributed photovoltaic power plants, and used photovoltaic power generation technology as the basis to extend its business development to solar
thermal, charging, energy storage, etc. The company completed the construction of the Shenzhen Higreen rooftop power station project and the China Star Optoelectronics Technology
rooftop power station project, and successfully achieved grid-connected power generation; it established a joint venture with Longjiang Trading to promote the layout of the
photovoltaic industry in Heilongjiang Province, cultivate the photovoltaic market, and actively promote photovoltaic energy storage, solar thermal, photovoltaic charging piles,
customized photovoltaic products and other businesses. The Hangzhou production line has completed acceptance and obtained third-party certification. The power generation glass
produced by the company has the advantages of beautiful appearance, flexible customization, and adjustable light transmittance. As a green building material, it has a wide range of
application scenarios in the field of building integrated photovoltaics (BIPV).
15
Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
2. Whether there are Major Changes in Main Business During the Reporting Period
□Yes No
3. Products Accounting for over 10% of the Company’s Main Business Income or Main Business Profit
Applicable □Not applicable
Increase/decrease Increase/decrease Increase/decrease
Operating income Operating profit Gross margin of operating of operating profit of gross margin
income y-o-y y-o-y y-o-y
According to industries
Electronic market
and property
944,630,133.94 140,130,131.71 28.99% -11.35% -47.74% -14.46%
leasing &
management
Real estate -67,499,629.65
394,902,826.71 32.72% 18.16% 19.39% -12.35%
development
Trade 1,415,745.67 -427,182.12 -5.86% -94.28% 96.83% 79.10%
Hotel 27,435,486.46 -6,987,329.96 -25.73% -39.46% -351.43% -251.69%
New energy 4,728,345.15 -7,390,144.39 29.18% 48.66% -150.69% -18.66%
Inspection & 11,505,263.86
30,553,279.44 70.61% 51.54% 54.09% 2.63%
testing
4. Whether the Characteristics of Management Seasonal or Cyclical Need Special Attention
□Yes No
5. During the Reporting Period, Note of Major Changes in Operating Income, Operating Cost, Total Net
Profit Attributable to Common Stock Shareholders of Listed Company or Composing by Comparing with
the Previous Reporting Period
Applicable □Not applicable
In 2020, the Company’s total operation income was 1,403.67 million yuan with 6.00% down on a y-o-y basis, the company’s total
operation cost was 984.81 million yuan with a decline of 0.06% on a y-o-y basis and the net profit attributable to shareholder of listed
company amounted to 25.92 million yuan, a y-o-y down of 66.95%. Main reasons for the decline of net profit attributable to
shareholder of listed company including: (1) the company implements the rent reduction that decided and deployed by Shenzhen
Municipal Committee and Government, approximately 115.16 million Yuan rents reduced; (2) due to the decrease in sale of financial
equity and y-o-y loss of associates, the investment income has 89.26 million yuan declined on a y-o-y basis.
6. Facing Delisting
□ Applicable √Not applicable
7. Relevant Items with Financial Report Concerned
(1) Particulars about the Changes in Aspect of Accounting Policy, Accounting Estimates and Calculation
Method Compared with the Financial Report of Last Year
√ Applicable □Not applicable
(1)Change of accounting policies caused by the Accounting Standards for Business Enterprises changed
16
Abstract of 2020 Annual Report of Shenzhen SEG Co., Ltd.
The Company implemented the “Accounting Standards for Business Enterprise No.14- Revenue” (hereinafter referred to as New
Revenue Standard) that revised by the Ministry of Finance since 1 January 2020. According to the provisions of the relevant old and
new standards, the information of comparable periods is not adjusted. The cumulative impact of the implementation of new standards
on the first implementation date is retrospectively adjusted to the amount of retained earnings at the beginning of the reporting period
and other related items in the financial statement.
Main impact of the implementation of new revenue standards on the Company’s financial statement dated 1 Jan. 2020:
Balance Sheet
Item Impact of new revenue standard
2019-12-31 2020-1-1
adjustments
Account received in advance 219,807,547.13 -219,807,547.13
Contract liability 219,805,326.00 219,805,326.00
Other current liability 2,221.13 2,221.13
(2) Since 1 Jan. 2020, the company has implemented the Interpretation of Accounting Standards for Business Enterprise No.13 issued
by the Ministry of Finance in 2019, and change of the accounting policy is accounted for using the future application method.
(2) Retroactive Restatement due to Corrections of Major Accounting Errors During the Reporting Period
□ Applicable √Not applicable
There is no retroactive restatement due to corrections of major accounting errors during the reporting period
(3) Changes in Consolidation Scope Compared with the Financial Report of Last Year
√ Applicable □Not applicable
Compared with the previous period, the number of entities included in consolidation scope of the financial statement for the current
period has one enterprise increased and one enterprise decreased:
1.The subsidiaries, special purpose entities and operation entities with control rights resulted by means of trustee operations or leases
that newly incorporated into the consolidation scope for the current period:
Name Reasons for change
Shenzhen Xindongsheng property Management Co., Ltd. Enterprise combined under the different control
2.The subsidiaries, special purpose entities and operation entities with control rights lost by means of consignment operations or
leasing that no longer included in the consolidation scope for the current period:
Name Reasons for change
Nanning SEG Electronic Market Management Co., Ltd. Liquidation
17
