意见反馈 手机随时随地看行情

公司公告

深赛格B:2018年第一季度报告正文(英文版)2018-04-28  

						                                                             Main Body of Q1 2018 Report of Shenzhen SEG Co., Ltd.




    Stock Code: 000058, 200058   Stock Name: Shen SEG, Shen SEG B             Announcement No.:2018-037




         Main Body of Q1 2018 Report of Shenzhen SEG Co., Ltd.




1
                                                     Main Body of Q1 2018 Report of Shenzhen SEG Co., Ltd.



                                 Chapter 1 Important Notice
The Board of Directors, the Board of Supervisors, directors, supervisors, and senior
executives guarantee that the quarterly report is authentic, accurate, and complete and that
it has no false records, misleading statements or major omissions and they undertake joint
and several legal liabilities.
All of the directors have attended the meeting of the Board of Directors reviewing the
quarterly report.
The head of the Company Chen Huijie, the Chief Financial Officer Liu Zhijun and the
responsible person of the accounting institution (accountant in charge) Ying Huadong
hereby declare that the Financial Statements enclosed in this quarter report are true,
accurate and complete.




2
                                                                                     Main Body of Q1 2018 Report of Shenzhen SEG Co., Ltd.



                                                  Chapter 2 Company Profile

I. Major Accounting Data and Financial Indexes
Are retrospective adjustments required to previous financial statements?
□ Yes √ No
                                                        Amount of the reporting    Amount of the same period Year-on-year increase/decrease
                                                               period                of the previous year        in the reporting period
Operating revenue (yuan)                                          391,140,155.46               317,456,442.86                         23.21%
Net profit attributable to shareholders of the listed
                                                                   62,622,931.80                31,609,057.25                         98.12%
company (yuan)
Net profit attributable to shareholders of the listed
company after deducting non-recurring gains and                    27,128,268.89                30,418,650.93                         -10.82%
losses (yuan)
Net cash flow arising from operating activities
                                                                   -1,165,334.33                44,232,089.23                        -102.63%
(yuan)
Basic EPS (yuan/share)                                                    0.0507                       0.0256                         98.04%
Diluted EPS (yuan/share)                                                  0.0507                       0.0256                         98.04%
Weighted average ROE                                                      2.40%                         1.50%                           0.90%
                                                        Amount at the end of the    Amount at the end of the    Year-on-year increase/decrease
                                                           reporting period             previous year               in the reporting period
Total assets (yuan)                                             6,779,563,975.31             6,992,590,420.75                          -3.05%
Net assets attributable to shareholders of the listed
                                                                1,970,693,597.89             1,917,228,370.15                           2.79%
company (yuan)

Items and amount of non-recurring profit or loss:
√ Applicable □ Not applicable
                                                                                                                                  Unit: Yuan
                                 Item                                Amount                             Remarks
Profit or loss on disposal of non-current assets (including the
                                                                  45,345,874.37 Income from reduction of holdings of Huakong SEG
write-off of assets depreciation reserves)
Government subsidies included in current profit or loss (except                 Support fund for the construction of Nantong SEG and
those closely related with corporate business and enjoyed 1,373,769.29 the subsidy for renovation of the external wall of SEG
according to national standards or certain quota)                               Plaza in Huaqiangbei, Shenzhen
Profit or loss on investment or asset management in proxy          3,368,273.42
                                                                                Payment of liquidated damages due to termination of
Other non-operating income and costs                              -4,072,364.45
                                                                                contract by SEG New Urban
Less: Amount of affected income tax                               11,503,888.16
     Amount of affected minority shareholders' equity (after tax)   -928,998.44
Total                                                             35,494,662.91
Explanation for defining items of non-recurring profit and loss listed in the Explanatory Announcement on Information
Disclosure by Companies Offering Securities to the Public No. 1 — Non-recurring Profit and Loss as items of recurring
profit and loss
□ Applicable √ Not applicable
In the reporting period, no items of non-recurring profit and loss listed in the Explanatory Announcement on Information
Disclosure by Companies Offering Securities to the Public No. 1 — Non-recurring Profit and Loss are defined as items
of recurring profit and loss.

II. Total number of shareholders and shares held by top 10 shareholders at the end of the reporting
period

1. Total number of ordinary shareholders and preferred shareholders restored with voting rights and shares held
by top 10 shareholders

                                                                                                                                 Unit: Share
Total number of ordinary                                               Total number of preferred
shareholders at the end of the                                  69,900 shareholders restored with                                           0
reporting period                                                       the voting rights (if any)

3
                                                                      Main Body of Q1 2018 Report of Shenzhen SEG Co., Ltd.


                                          Shares held by top 10 shareholders
                                                                       Quantity of Information on pledged or frozen
     Name of         Nature of      Proportion of
                                                      Shares held restricted shares              shares
    shareholder     shareholder     shareholding
                                                                          held       Share status       Quantity
Shenzhen SEG State-owned
                                           56.70%      700,628,759      450,857,239
Group Co., Ltd. legal person
                 Domestic natural
Liu Guocheng                                0.56%        6,891,302                  0
                 person
Shanghai
Juzhang          Domestic
Investment       non-state-owned            0.36%        4,396,241                  0
Management       legal person
Co., Ltd.
                 Domestic natural
Zhang Jiao                                  0.33%        4,046,989                  0
                 person
                 Domestic natural
Liu Guohong                                 0.25%        3,069,939                  0
                 person
                 Overseas natural
Gong Qianhua                                0.24%        2,940,000                  0
                 person
China Securities
                 Domestic
Finance
                 non-state-owned            0.18%        2,271,900                  0
Corporation
                 legal person
Limited
                 Domestic natural
Bian Xueping                                0.17%        2,184,100                  0
                 person
                 Domestic natural
Xu Yueying                                  0.13%        1,552,000                  0
                 person
China Hi-tech
                 State-owned
Group                                       0.12%        1,500,000                  0
                 legal person
Corporation
                              Information on top 10 shareholders of non-restricted shares
                                                                                                 Type of share
        Name of shareholder           Quantity of unrestricted ordinary shares held
                                                                                      Type of share        Quantity
                                                                                      RMB ordinary
Shenzhen SEG Group Co., Ltd.                                            249,771,520                         249,771,520
                                                                                      shares
                                                                                      Domestically
Liu Guocheng                                                               6,891,302 listed foreign            6,891,302
                                                                                      shares
Shanghai Juzhang Investment                                                           RMB ordinary
                                                                           4,396,241                           4,396,241
Management Co., Ltd.                                                                  shares
                                                                                      RMB ordinary
Zhang Jiao                                                                 4,046,989                           4,046,989
                                                                                      shares
                                                                                      Domestically
Liu Guohong                                                                3,069,939 listed foreign            3,069,939
                                                                                      shares
                                                                                      Domestically
Gong Qianhua                                                               2,940,000 listed foreign            2,940,000
                                                                                      shares
China Securities Finance                                                              RMB ordinary
                                                                           2,271,900                           2,271,900
Corporation Limited                                                                   shares
                                                                                      RMB ordinary
Bian Xueping                                                               2,184,100                           2,184,100
                                                                                      shares
                                                                                      Domestically
Xu Yueying                                                                 1,552,000 listed foreign            1,552,000
                                                                                      shares
                                                                                      RMB ordinary
China Hi-tech Group Corporation                                            1,500,000                           1,500,000
                                                                                      shares
Explanations on the association  Shenzhen SEG Group Co., Ltd. has no association relationship with other
relationship or concerted action shareholders and is not a person acting in concert with other shareholders as specified

4
                                                                      Main Body of Q1 2018 Report of Shenzhen SEG Co., Ltd.


among the above-mentioned           in the Management Methods for Disclosure of Information on Changes of
shareholders                        Shareholding Status of Shareholders of Listed Companies. It is unclear whether other
                                    shareholders are persons acting in concert.
                                    Among the above top 10 shareholders, Zhang Jiao holds 0 shares of the Company in
Information on top 10 ordinary      an ordinary account and 4,046,989 shares in a margin trading investor credit account,
shareholders participating in       totaling 4,046,989 shares of the Company. Bian Xueping holds 0 share of the
securities margin trading (if any) Company in an ordinary account and 2,184,100 shares in a margin trading investor
                                    credit account, totaling 2,184,100 shares of the Company.
Did top 10 ordinary shareholders of the Company or top 10 ordinary shareholders of non-restricted shares conduct
agreed repurchase transactions in the reporting period?
□ Yes √ No
The top 10 ordinary shareholders of the Company or top 10 ordinary shareholders of non-restricted shares did not
conduct agreed repurchase transactions in the reporting period.

2. Total number of preferred shareholders and shares held by top 10 preferred shareholders

□ Applicable √ Not applicable




5
                                                                               Main Body of Q1 2018 Report of Shenzhen SEG Co., Ltd.




                                        Chapter 3 Important Matters

I. Changes in main financial data and financial indicators of the reporting period and reasons

√ Applicable □ Not applicable
(I) Items of the consolidated balance sheet statement

                                                                                                                     Unit: RMB/Yuan

             Item                         Closing balance               Opening              Difference           Increase/decrease
                                                                         balance                                  compared with the
                                                                                                                    amount of the
                                                                                                                   beginning of the
                                                                                                                     period (%)

Accounts receivable                                 95,441,618.29     61,934,101.56            33,507,516.73                  54.10%

Prepayment                                          49,283,415.61     34,718,079.54            14,565,336.07                  41.95%

Investment properties                             1,074,155,513.44   676,888,184.90           397,267,328.54                  58.69%

Payroll payable                                     25,706,082.70     41,014,602.99           -15,308,520.29                  -37.32%

1.    Accounts receivable increase by RMB 33,507,516.73 or 54.10% compared with the amount of the beginning of the period,
      mainly because SEG Real Estate Investment confirmed the income of the property management fee of 2,473.42 million yuan
      during the reporting period.
2.    Prepayment increases by RMB 14,565,336.07 or 41.95% compared with the amount of the beginning of the period, mainly
      because Shenzhen-Shantou SEG Longyan paid the device purchasing fund of RMB 23,519,900 in the reporting period.
3.    Investment properties increase by RMB 397,267,328.54 or 58.69% compared with the amount of the beginning of the period,
      mainly because Nantong SEG carried forward the commercial property costs of RMB 411 million to investment properties in the
      reporting period.
4.    Payroll payable decreases by RMB 15,308,520.29 or 37.32% compared with the amount of the beginning of the period, mainly
      because the Company granted some salaries and bonuses accrued last year in the reporting period.


(II) Items of the consolidated profit statement
                                                                                                                     Unit: RMB/Yuan
                                                                                                                   Increase/decrease
                                        Amount of the current        Amount of the same                            compared with the
                  Item                                                                          Difference
                                                  period               period last year                           amount of the same
                                                                                                                  period last year (%)

Interest income                                     5,020,857.08           13,455,248.15          -8,434,391.07               -62.68%

Tax and surcharges                                 10,239,902.06            6,678,270.88           3,561,631.18               53.33%

Financial expenses                                 15,524,536.56            4,747,437.45         10,777,099.11               227.01%
Loss of impairment of assets                        3,428,150.12                      0.00         3,428,150.12                        -
Investment income                                  43,590,161.83              544,597.03         43,045,564.80              7904.11%


6
                                                                                Main Body of Q1 2018 Report of Shenzhen SEG Co., Ltd.


Non-operating expenses                             4,264,049.51                 147,931.71             4,116,117.80              2782.44%
Income tax expenses                               29,410,259.23             18,096,458.88             11,313,800.35                62.52%
Net profit attributable to the owner
                                                  62,622,931.80             31,609,057.25             31,013,874.55                98.12%
of the parent company
Minority shareholders' profit and
                                                  11,208,997.40              8,597,963.44              2,611,033.96                30.37%
loss

1.     Interest income decreases by RMB 8,434,391.07 or 62.68% compared with the amount of the same period last year, mainly
       because the loan business SEG Credit declined in the reporting period.
2.     Tax and surcharges increase by RMB 3,561,631.18 or 53.33% compared with the amount of the same period last year, mainly
       because the land VAT for property sales of RMB 4,070,700 in the reporting period.
3.     Financial expenses increase by RMB 10,777,099.11 or 227.01% compared with the amount of the same period last year, mainly
       because in the reporting period 1) the SEG New Urban project was completed and the capitalization of borrowing interests
       ceased; 2) increase in borrowings leads to increase in interest expenses.
4.     Loss of impairment of assets increases by RMB 3,428,150.12 compared with the amount of the same period last year, mainly
       because SEG Credit accrued the provision for loan loss in the reporting period which was not incurred last year.
5.     Investment income increases by RMB 43,045,564.80 compared with the amount of the same period last year, mainly because the
       Company obtained the investment income from sales of stocks of Huakong SEG in the reporting period.
6.     Non-operating expenses increase by RMB 4,264,049.51 or 2,782.44% compared with the amount of the same period last year,
       mainly because the termination of SEG Real Estate Investment payment contract during the reporting period.
7.     Income tax expenses increase by RMB 11,313,800.35 or 62.52% compared with the amount of the same period last year, mainly
       because the Company obtained the investment income of RMB 45,700,000 from sales of stocks of Huakong SEG in the
       reporting period and the corresponding income tax expenses increase.
8.     Net profit attributable to the owner of the parent company increase by RMB 31,013,874.55 or 98.12% compared with the amount
       of the same period last year, mainly because the Company obtained the investment income of RMB 45,700,000 from sales of
       stocks of Huakong SEG.
9.     Minority shareholders' profit and loss increase by RMB 2,611,033.96 or 30.37% compared with the amount of the same period
       last year, mainly because the New Urban project of SEG Real Estate reached the income recognition criteria and the sales
       payment received in advance is transferred to income, leading to increase in the net profit.
(III) Items of the consolidated cash flow statement
                                                                                                                          Unit: RMB/Yuan
                                                                                                                        Increase/decrease
                                                                       Amount of the same                                 compared with
                                                Amount of the
                    Item                                                  period last year             Difference       the amount of the
                                                current period
                                                                             (adjusted)                                   same period last
                                                                                                                             year (%)
Cash received from interest, handling
                                                      4,661,395.77              15,294,323.84          -10,632,928.07             -69.52%
charges and commissions
Net increase in customer loans and
                                                   -16,784,988.00                  -445,447.60         -16,339,540.40                        -
advances
Cash    received     from   disposal   of
                                                  359,690,000.00              598,000,000.00          -238,310,000.00             -39.85%
investments

Cash     received    from   returns    on          52,184,734.09                   4,343,173.32        47,841,560.77             1101.53%



7
                                                                              Main Body of Q1 2018 Report of Shenzhen SEG Co., Ltd.


investments

Cash       paid    for     purchase   and
construction of fixed assets, intangible            32,963,785.60              12,781,888.65         20,181,896.95           157.89%
assets and other long-term assets

Cash paid for investment                           350,880,000.00             514,980,001.00     -164,100,001.00             -31.87%

Other     cash    paid    for   investment
                                                        78,250.87              30,010,000.00         -29,931,749.13          -99.74%
activities

Cash received by absorbing investment                  980,000.00              56,100,000.00         -55,120,000.00          -98.25%

Cash received from borrowings                      152,000,000.00             370,000,000.00     -218,000,000.00             -58.92%

Cash paid for dividend and profit
                                                    12,986,315.44              39,883,427.10         -26,897,111.66          -67.44%
distribution or interest payment

1.      Cash received from interest, handling charges and commissions decreases by RMB 10,632,928.07 or 69.52% compared with the
        amount of the same period last year, mainly because SEG Credit shrank loans and the interest and handling charges received
        decreased compared with the amount of last year.
2.      Net increase in customer loans and advances decreases by RMB 16,339,540.40 compared with the amount of the same period
        last year, mainly because SEG Credit shrank loans in the reporting period.
3.      Cash received from disposal of investments decreases by RMB 238,310,000.00 or 39.85% compared with the amount of the
        same period last year, mainly because the principal of bank financing recovered by the Company decreased in the reporting
        period.
4.      Cash received from returns on investments increases by RMB 47,841,560.77 or 1,101.53% compared with the amount of the
        same period last year, mainly because the Company received income from sales of stocks of Huakong SEG in the reporting
        period.
5.      Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets increases by RMB
        20,181,896.95 or 157.89% compared with the amount of the same period last year, mainly because Shenzhen-Shantou SEG
        Longyan made the payment for devices in the reporting period.
6.      Cash paid for investment decreases by RMB 164,100,001.00 or 31.87% compared with the amount of the same period last year,
        mainly because the financial amount of the Company decreased in the reporting period.
7.      Other cash paid for investment activities decreases by RMB 29,931,749.13 or 99.74% compared with the amount of the same
        period last year, mainly because the performance bond for project land paid by Shenzhen-Shantou SEG Longyan was included in
        this item last year.
8.      Cash received by absorbing investment decreases by RMB 55,120,000.00 or 98.25% compared with the amount of the same
        period last year, mainly because the minority shareholders' investments received by SEG Longyan was included in this item last
        year.
9.      Cash received from borrowings decreases by RMB 218,000,000.00 or 58.92% compared with the amount of the same period last
        year, mainly because bank loans received by the Company decreased in the reporting period.
10.     Cash paid for dividend and profit distribution or interest payment decreases by RMB 26,897,111.66 or 67.44% compared with
        the amount of the same period last year, mainly because no subsidiary distributed profits to minority shareholders in the
        reporting period, payment interest only.




8
                                                                          Main Body of Q1 2018 Report of Shenzhen SEG Co., Ltd.


II. Progress and impacts of major events and analysis of solutions

√ Applicable □ Not applicable
(I) Completion of reduction of holdings of Huakong SEG
On September 9, 2017, the Company released the Announcement on the Plan of Reduction of Holdings of Shenzhen Huakong SEG Co.,
Ltd. in the designated information disclosure media and planned to reduce no more than 20,133,429 holding-shares of Huakong SEG
by centralized bidding. As of March 30, 2018, the Company reduced 20,066,600 or 1.9933% of holding-shares of Huakong SEG and
completed the plan of reduction. (For details, see the Announcement on the Reduction of Holdings of Shenzhen Huakong SEG Co., Ltd.
released by the Company in the designated information disclosure media on April 3, 2018.)
(II) Completion of increase in holdings of the Company by middle and senior managers of the Company and its controlling
shareholders
On September 26, 2017, the Company released the Announcement on the Plan of Increase of Holdings of the Company by Some
Directors, Supervisors, Middle and Senior Managers of Controlling Shareholders and Some Directors, Supervisors and Senior
Managers of the Company in the designated information disclosure media. Some directors, supervisors, middle and senior managers of
controlling shareholders and some directors, supervisors and senior managers of the Company planned to increase holdings of the
Company valued no less than RMB 5 million by centralized bidding in the trading system of Shenzhen Stock Exchange. As of March
25, 2018, the plan of increase was completed and the amount of increase of holdings was RMB 6,169,500. (For details, see the
Announcement on Completion of the Plan of Increase of Holdings of the Company by Some Directors, Supervisors, Middle and Senior
Managers of Controlling Shareholders and Some Directors, Supervisors and Senior Managers of the Company released by the
Company in the designated information disclosure media on March 27, 2018.)
(III) Equity transfer of SEG Credit
On March 13, 2018, the Company released the Announcement on the Connected Transaction of Transfer of 62% of the Equity of
Shenzhen SEG Credit Co., Ltd. Held by the Company and its Holding Subsidiaries in the designated information disclosure media and
transferred 62% of the equity of SEG Credit held by the Company to the controlling shareholder SEG Group. As of April 18, 2018, the
equity transfer was completed. (For details, see the Announcement on the Progress of Transfer of 62% of the Equity of Shenzhen SEG
Credit Co., Ltd. Held by the Company and its Holding Subsidiaries released by the Company in the designated information disclosure
media in April 21, 2018.)
(IV) Lawsuits of Nanning SEG
Dispute over the lease contract arose between Nanning Haiqi Real Estate Development Co., Ltd. and the Company
Case number: 2016 G. 0102 M. C. No. 3653
According to the judgment of the first instance, Nanning SEG shall pay the liquidated damages of RMB 666,600 to Nanning Haiqi, the
Company shall be jointly and severally liable, and other claims were dismissed. Nanning Haiqi instituted an appeal to Nanning
Intermediate People's Court. According to the effective judgment [(2017) G. 01. M. Z. 4210] entered by Nanning Intermediate People's
Court in March 2018, the defendant shall pay the liquidated damages of RMB 8,000,000.00, the attorney fee of RMB 263,000.00 and
the litigation cost of RMB 13.4238
Second instance judgment: Nanning SEG shall pay the liquidated damages of RMB 8 million, pay the attorney fee of RMB 263,000 to
Nanning Haiqi, and pay the case acceptance fee of RMB 134,238. As of April 4, 2018, Nanning Xingning Court blocked two accounts
of the Company and deducted RMB 8,476,600. The Company has applied for re-trial.

                                                                                       Inquiry index for the websites disclosing the
                  Overview of major events                       Disclosure date
                                                                                                    temporary reports

1. Progress of the lawsuit of the holding subsidiary                                 http://www.cninfo.com.cn
                                                                 January 5, 2018
The holding subsidiary SEG Industrial received the Civil                             Announcement of Shenzhen SEG Co., Ltd. on


9
                                                                         Main Body of Q1 2018 Report of Shenzhen SEG Co., Ltd.


Judgments [(2017) Y. 0304 M. C. No. 5088 and 5092] from                            the Progress of the Lawsuit of the Holding
Futian District People's Court                                                     Subsidiary

                                                                                   http://www.cninfo.com.cn
2. Expiration of the approval of share issuance to acquire                         Announcement of Shenzhen SEG Co., Ltd. on
                                                                January 5, 2018
assets and raise supporting funds                                                  the Approval of Share Issuance to Acquire
                                                                                   Assets and Raise Supporting Funds

3. Reduction of holdings of Huakong SEG
As deliberated and adopted at the 24th interim meeting of
the 7th Board of Directors and the 5th extraordinary general
meeting of 2017, the Company will reduce no more than
20,133,429 holding-shares of Huakong SEG (accounting for
no more than 2% of the total share capital of Huakong SEG,
                                                                                   http://www.cninfo.com.cn
subject to changes in case of changes in shares due to
                                                                                   Announcement of Shenzhen SEG Co., Ltd. on
issuance of bonus shares or capital reserves transferred into   January 5, 2018
                                                                                   the Progress of Reduction of Holdings of
share capital by Huakong SEG) by centralized bidding
                                                                                   Shenzhen Huakong SEG Co., Ltd.
according to laws within six months following 15 trading
days from the announcement of the plan of reduction, and
will authorize the management of the Company to appoint
personnel to be responsible for specific operations. As of
January 3, the Company reduced 10,066,600 or 0.9999% of
holding-shares of Huakong SEG.

4. Shenzhen SEG Longyan Energy Technology Co., Ltd.'s
investment and establishment of Hangzhou SEG Longyan
Energy Technology Co., Ltd.
The   Proposal    for   Shenzhen     SEG   Longyan     Energy
                                                                                   http://www.cninfo.com.cn
Technology Co., Ltd.'s Investment and Establishment of
                                                                                   Announcement of Shenzhen SEG Co., Ltd. on
Hangzhou SEG Longyan Energy Technology Co., Ltd. was            January 19, 2018
                                                                                   the Investment and Establishment of Hangzhou
deliberated and adopted at the 28th interim meeting of the
                                                                                   SEG Longyan Energy Technology Co., Ltd.
7th Board of Directors on January 17, 2018. SEG Longyan
invested and established         a wholly-owned subsidiary
Hangzhou SEG Longyan Energy Technology Co., Ltd. in
Hangzhou with the registered capital of RMB 40,000,000.

5. Connected Transaction of transfer of 62% of the equity of
Shenzhen SEG Credit Co., Ltd. held by the Company and its
holding subsidiaries
                                                                                   http://www.cninfo.com.cn
The Company transferred 62% of the equity of Shenzhen
                                                                                   Announcement on the Connected Transaction
SEG Credit Co., Ltd. held by the Company and its holding
                                                                March 13, 2018     of Transfer of 62% of the Equity of Shenzhen
subsidiaries, including 38% of the equity of SEG Credit held
                                                                                   SEG Credit Co., Ltd. Held by the Company
by the Company, 16% of the equity of SEG Credit held by
                                                                                   and its Holding Subsidiaries
Shenzhen SEG Industrial Investment Co., Ltd., and 8% of
the equity of SEG Credit held by SEG Property
Development Co., Ltd.



10
                                                                            Main Body of Q1 2018 Report of Shenzhen SEG Co., Ltd.


6. Convening the first extraordinary general meeting of 2018
The Company published the Announcement on the Notice of
the First Extraordinary General Meeting of 2018 and the
                                                                                        http://www.cninfo.com.cn
Supplementary Notice of the First Extraordinary General
                                                                  March 27, 2018        Announcement     on    Convening    the   First
Meeting of 2018 in China Securities Journal, Securities
                                                                                        Extraordinary General Meeting of 2018
Times, Securities Daily, Hong Kong Commercial Daily, and
www.cninfo.com.cn respectively on March 13, 2018 and
March 17, 2018.

7. Replacement of directors and supervisors
The Company convened the first extraordinary general
meeting of 2018 on March 29, 2018. As deliberated and                                   http://www.cninfo.com.cn
adopted at the meeting, Chen Huijie and Zhang Liang were          March 29, 2018        Announcement on Resolutions of the First
elected as directors of the 7th Board of Directors, and Zhang                           Extraordinary General Meeting of 2018
Yujie and Wang Guancheng were elected as supervisors of
the 7th Board of Supervisors.

8. Election of the Chairman of the Board of Directors and
Chairman of the Board of Supervisors and appointment of
the Vice General Manager and Secretary of the Board
The Company convened the 31st interim meeting of the 7th
                                                                                        http://www.cninfo.com.cn
Board of Directors and the 6th interim meeting of the 7th
                                                                                        Announcement on Resolutions of the 31st
Board of Supervisors on March 29, 2018. At the meeting of
                                                                  March 30, 2018        Interim Meeting of the 7th Board of Directors
the Board of Directors, Mr. Chen Huijie was elected as
                                                                                        and Announcement on Resolutions of the 6th
Chairman of the Board of Directors and Mr. Peng Aiyun was
                                                                                        Interim Meeting of the 7th Board of Directors
appointed as Vice General Manager and Secretary of the
Board. At the meeting of the Board of Supervisors, Mr.
Zhang Yujie was elected as Chairman of the Board of
Supervisors.

9. Public offering of corporate bonds
                                                                                        http://www.cninfo.com.cn
The Company convened the 30th interim meeting of the 7th
                                                                                        Announcement on Resolutions of the 30th
Board of Directors on March 13, 2018 and the first
                                                                March 13, 2018 and      Interim Meeting of the 7th Board of Directors
extraordinary general meeting of 2018 on March 29, 2018, at
                                                                  March 29, 2018        and Announcement on Resolutions of the First
which the Proposal of Shenzhen SEG Co., Ltd. for Public
                                                                                        Extraordinary General Meeting of 2018
Offering of Corporate Bonds was deliberated and adopted.


III. Commitments not fulfilled in the reporting period by the actual controller of the Company,
shareholders, buyers, or other related parties

□ Applicable      √ Not applicable
There are no commitments not fulfilled in the reporting period by the actual controller of the Company, shareholders, buyers, or other
related parties.




11
                                                                               Main Body of Q1 2018 Report of Shenzhen SEG Co., Ltd.


IV. Estimation of operating results of January-June 2018

Warning of negative estimated accumulated net profit from the beginning of the year to the end of the next reporting period or large
fluctuation over the same period of the previous year and causes
√ Applicable □ Not applicable
Performance forecast: The same goes up dramatically
The performance forecast fills in the data type: Exact quantity

                             The end of the next        The same period last        Increase/decrease compared with the amount of the
                             reporting period           year                        same period last year

Cumulative net profit
forecast (Ten thousand       9,100                      5,001                       Increase                    91.96%
yuan)

Basic EPS (yuan/share)       0.0736                     0.0405                      Increase                    81.84%

Description of the           Cumulative net profit forecast for the first half of 2018 includes the investment income from sales of
performance forecast         stocks of Huakong SEG, which did not occur in the same period last year.




V. Securities investment

□ Applicable    √ Not applicable


VI. Derivative investment

□ Applicable √ Not applicable
No derivative investment is involved in the reporting period.


VII. Registration form for investigations, communication and interviews in the reporting
period

√ Applicable □ Not applicable

          Time                        Means               Type                                 Investigation Index

                                                                       Inquire about when the Company will disclose the annual report.
January 5, 2018                      Phone call        Individual      The Company has replied that the annual report will be disclosed
                                                                       on April 24, 2018.

                                                                       Inquire why the stock price of the Company does not rise and
                                                                       whether there is any important announcement to be disclosed.
January 11, 2018                     Phone call        Individual
                                                                       The Company has replied that there is no information that should
                                                                       have been disclosed but not disclosed.

                                                                       Inquire about the progress of reduction of holdings of Huakong
January 19, 2018                     Phone call        Individual      SEG. The Company has given a reply according to the actual
                                                                       progress disclosed.



12
                                                                            Main Body of Q1 2018 Report of Shenzhen SEG Co., Ltd.


                                                                     Inquire about the progress of the SEG Longyan project of the
February 5, 2018                  Phone call           Individual    Company. The Company has given a reply according to the
                                                                     actual progress disclosed.

                                                                     Inquire about the number of shareholders as of February 28. The
                                                                     Company has given a reply according to the register of
February 28, 2018                 Phone call           Individual
                                                                     shareholders released by the Securities Depository and Clearing
                                                                     Corporation.

                                                                     Inquire about the main business and transformation of the
March 9, 2018                     Phone call           Individual    Company. The Company has given a reply according to the
                                                                     actual progress disclosed.

                                                                     Inquire about the number of shareholders as of March 15. The
                                                                     Company has given a reply according to the register of
March 15, 2018                    Phone call           Individual
                                                                     shareholders released by the Securities Depository and Clearing
                                                                     Corporation.

                                                                     Inquire about when the Company will disclose the annual report.
March 23, 2018                    Phone call           Individual    The Company has replied that the annual report will be disclosed
                                                                     on April 24, 2018.

                                                                     Inquire about the registration method of the general meeting. The
March 27, 2018                    Phone call           Individual    Company has given a reply according to the disclosed notice of
                                                                     the general meeting.


VIII. Illegal external guarantee

□ Applicable √ Not applicable
No illegal external guarantee is involved in the reporting period.


IX. Non-operating capital occupation on the listed company by the controlling shareholders
and related parties

□ Applicable √ Not applicable
No non-operating capital occupation on the listed company by the controlling shareholders and related parties is involved in the
reporting period.




13