Abstract of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.
Stock code: 000058, 200058 Stock abbreviation: SHEN SEG, SHEN SEG B Notice No.:2017-059
Abstract of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.
I. Important Notice
The abstract of the semi-annual report is excerpted from the full text of the semi-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 semi-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
reporting 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
reporting 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,
31/F, Tower A, Stars Plaza, Huaqiang Road (N),
Contact address Huaqiang Road (N), Futian District,
Futian District, Shenzhen
Shenzhen
Phone 0755-83747939 0755-83747939
E-mail segcl@segcl.com.cn segcl@segcl.com.cn
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Abstract of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.
2. Main Accounting Data and Financial Indexes
Are retrospective adjustments required to previous financial statements?
√ Yes □ No
Reason for retrospective adjustments or restatement
Merger of enterprises under common control
Amount of the same period of the previous Year-on-year
Amount of the year increase/decrease
reporting period
Before adjustment After adjustment After adjustment
Operating revenue (Yuan) 592,346,626.22 362,673,236.85 724,213,525.00 -18.21%
Net profit attributable to shareholders of
50,008,785.42 26,856,270.42 104,913,059.48 -52.33%
the listed company (Yuan)
Net profit attributable to shareholders of
the listed company after deduction of 31,884,098.21 28,696,459.47 27,187,695.79 17.27%
non-recurring profit or loss (Yuan)
Net cash flow arising from operating
93,125,278.74 -99,314,028.40 70,386,258.79 32.31%
activities (Yuan)
Basic EPS (Yuan/Share) 0.0405 0.0342 0.0849 -52.30%
Diluted EPS (Yuan/Share) 0.0405 0.0342 0.0849 -52.30%
Weighted average ROE 2.67% 1.82% 4.67% -2.00%
Year-on-year
Year-end amount
Closing amount increase/decrease
Before adjustment After adjustment After adjustment
Total assets (Yuan) 7,423,262,800.40 2,548,276,265.32 6,923,273,093.64 7.22%
Net assets attributable to shareholders of
1,793,775,473.28 1,548,200,647.55 2,412,301,070.04 -25.64%
the listed company (Yuan)
3. Information on the Number of Shareholders and Their Shareholding Status
Unit: Share
Total number of ordinary Total number of preferred
shareholders at the end of the 75,823 shareholders restored with the
reporting period voting rights (if any) (see note 8)
Information on top 10 shareholders
Quantity of Information on pledged or
Name of Shareholding restricted frozen shares
Nature of shareholder Shareholding ratio
shareholder number ordinary shares Share
held Quantity
status
Shenzhen SEG State-owned legal
55.70% 688,216,905 450,857,239
Group Co., Ltd. person
Liu Guocheng Domestic natural person 0.55% 6,829,502 0
Zhang Jiao Domestic natural person 0.33% 4,046,989 0
Liu Guohong Domestic natural person 0.27% 3,174,958
Gong Qianhua Overseas natural person 0.24% 2,940,000 0
Shanghai Juzhang
Domestic
Investment
non-state-owned legal 0.20% 2,476,621 0
Management Co.,
person
Ltd.
Zeng Ying Domestic natural person 0.19% 2,300,000 0
China Securities Domestic 0.18% 2,271,900 0
Finance non-state-owned legal
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Abstract of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.
Corporation person
Limited
China Hi-tech State-owned legal
0.12% 1,500,000 0
Group Corporation person
Zhao Dan Domestic natural person 0.10% 1,259,263 0
Shenzhen SEG Group Co., Ltd. has no associated relationship with other shareholders,
Explanations on the association relationship nor is a concerted action unit as specified in the Management Methods for Disclosure of
or concerted action among the Information on Changes of Shareholding Status of Shareholders of Listed Companies. It
above-mentioned shareholders is unknown whether other shareholders have an associated relationship or are concerted
action units or not.
Information of ordinary shareholders Among top 10 shareholders, Zhang Jiao holds 0 share of the Company in the ordinary
participating in financing business (if any) account and 4,046,989 shares of the Company in the margin trading investor credit
(see note 4) account. Zhang Jiao holds 4,046,989 shares of the Company in total.
4. Changes in Controlling Shareholders and Actual Controllers
Changes of the controlling shareholders in the reporting period
□ Applicable √ Not applicable
In the reporting period, the controlling shareholders of the Company are not changed.
Changes of the actual controllers in the reporting period
□ Applicable √ Not applicable
In the reporting period, the actual controllers of the Company are not changed.
5. Information on the Number of Preferred-Share Shareholders and Top 10 Shareholding Status
□ Applicable √ Not applicable
No preferred shares are involved in the reporting period.
6. 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 semi-annual report?
No
II. Management Discussion and Analysis
1. Overview
In the first half of 2017, China's economy features stable consumption growth in the short term, pick up in
investment, and downward pressure.
In the reporting period, the Company has completed major assets restructuring. Benefiting from injection of core
business assets into the electronics market, the scale of the main business of the Company will expand. Benefiting
from asset injection into commercial real estate and property management, the business of the Company will
interwork. In this way, the going-concern ability of the Company will be enhanced and the influence of the listed
company will be enhanced.
Facing fierce market competition and the continuous impact of e-commerce, the Company is dedicated to user
value, integrates resources, further expands the industrial chain, improves the service quality of electronics
markets, creates a business model combining multiple business types, including the maker ecosystem, culture &
education, intelligent technology, sports & entertainment, virtual experience, e-sports, and financial services,
vigorously promotes transformation and upgrading of the electronics market business, explores new business
development models, and continuously improves the operating capacity and profitability of the Company .
In the reporting period, the total operating income from the Company amounted to RMB 625,086,000 and
decreased by 19.22% over the same period last year. The total profit amounted to RMB 103,484,000 and
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Abstract of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.
decreased by 49.21% over the same period last year. Main reasons for decrease in the operating income: (1) As
the sales revenue of the project of SEG New Urban is not eligible for recognition, the real estate income and profit
of SEG Real Estate is expected to be recognized in the second half of 2017; (2) The purchasing agent business of
SEG Industry is gradually terminated. The main reason for decrease in the total profit: (1) In the same period of
last year, SEF Real Estate transferred 48 sets of properties and received the nonbusiness income of RMB
60,590,000, but such a business income did not occur in this year. (2) As the sales revenue of the project of SEG
New Urban cannot be recognized now, the real estate income and profit of SEG Real Estate is expected to be
recognized in the second half of 2017.
2. Matters Involving Financial Statements
(1) Changes of accounting policies, accounting estimates and accounting methods, compared with the
financial report of the previous accounting period
√ Applicable □Not applicable
Content of and Reason for Accounting Policies Procedure for examination and approval
The Notice on the issuance and revision of the Examined and approved by the 4th meeting of 7th Board
Accounting Standard for Business Enterprises No. 16 - of Directors and the 4th meeting of 7th Board of
Government Subsidy (Accounting [2017] No. 15) Supervisors of the Company
issued by the Ministry of Finance on May 10, 2017 is
implemented from June 12, 2017. Government
subsidies on January 1, 2017 shall be disposed of by
prospective application. New government subsidies
from January 1, 2017 to the implementation date of the
new standard shall be adjusted according to the new
standard.
The Notice on the issuance of the Accounting Standard Examined and approved by the 4th meeting of 7th Board
for Business Enterprises No. 42 - Non-current Assets of Directors and the 4th meeting of 7th Board of
Held for Disposal, Disposal Group and Termination of Supervisors of the Company
Business (Accounting [2017] No. 13) issued by the
Ministry of Finance on April 28, 2017 is implemented
from May 28, 2017.
(2) Explanation on significant accounting error correction subject to retrospective restatement in the
reporting period
□ Applicable √ Not applicable
There is no significant accounting error correction subject to retrospective restatement in the reporting period.
(3) Changes in consolidation scope, compared with the financial report of the previous accounting period
√ Applicable □Not applicable
Compared with the previous period, the consolidated financial statement increases 14 entities in this reporting
period, therein:
Subsidiaries, special purpose entities, and business entities that profit control by way of commissioning
management or renting newly included in the consolidation scope in the current period are as follows:
Name Reason for change
Shenzhen-Shantou Cooperation Zone SEG Longyan Energy
Newly established
Technology Co., Ltd.
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Abstract of 2017 Semi-annual Report of Shenzhen SEG Co., Ltd.
SEG Lianzhong Internet Technology Co., Ltd. Newly established
Shenzhen SEG Zhongtong Technology Co., Ltd. Newly established
Shenzhen SegMaker Co., Ltd. Merger of enterprises under common control
SEG Kangle Enterprise Development Co., Ltd. Merger of enterprises under common control
SEG Property Development Co., Ltd. Merger of enterprises under common control
Shenzhen SEG Real Estate Investment Co., Ltd. Merger of enterprises under common control
Huizhou Stars Real Estate Development Co., Ltd. Merger of enterprises under common control
SEG Property Management Co., Ltd. Merger of enterprises under common control
Shenzhen SEG New Urban Construction Development Co., Merger of enterprises under common control
Ltd.
Shenzhen SEG New Urban Business Operation Co., Ltd. Merger of enterprises under common control
Beijing SEG Property Development Co., Ltd. Merger of enterprises under common control
Xi'an Konghong Property Co., Ltd. Merger of enterprises under common control
Shenzhen Hongge Cultural Development Co., Ltd. Merger of enterprises under common control
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