Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
Shenzhen SEG Co., Ltd.
Q3 2018 Report
October 2018
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Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
Chapter 1 Important Notice
The Board of Directors, the Board of Supervisors, directors, supervisors, and senior
executives of the Company undertake that the quarterly report is authentic, accurate,
and complete without false records, misleading statements or major omissions and
bear joint and several legal liabilities.
All directors have attended this meeting of the Board of Directors where the
quarterly report was deliberated.
Chairman of the Board of Directors Chen Huijie, the Person in charge of accounting
Liu Zhijun, and the responsible person of the accounting institution (accountant in
charge) Ying Huadong hereby declare that the financial statements enclosed in this
quarterly report are authentic, accurate and complete.
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Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
Definitions
Definition Refers to Description
This Company, the Company, the listed
Refers to Shenzhen SEG Co., Ltd.
company, Shen SEG
SEG Group Refers to Shenzhen SEG Group Co., Ltd.
Longgang SEG Refers to Shenzhen SEG Electronics Market Management Co., Ltd.
Suzhou SEG Refers to Suzhou SEG Electronics Market Management Co., Ltd.
Suzhou SEG Digital Refers to Suzhou SEG Digital Plaza Management Co., Ltd.
Shenzhen SEG Nanjing Electronics Market Management Co.,
Nanjing SEG Refers to
Ltd.
Xi'an SEG Refers to Xi'an SEG Electronics Market Co., Ltd.
Xi'an Hairong SEG Refers to Xi'an Hairong SEG Electronics Market Co., Ltd.
Changsha SEG Refers to Changsha SEG Development Co., Ltd.
Wujiang SEG Refers to Wujiang SEG Market Management Co., Ltd.
Shunde SEG Refers to Shunde SEG Electronics Market Management Co., Ltd.
Nanning SEG Refers to Nanning SEG Digital Plaza Management Co., Ltd.
Shanghai SEG Refers to Shanghai SEG Electronics Market Co., Ltd.
SEG Baohua Refers to Shenzhen SEG Baohua Enterprise Development Co., Ltd.
SEG Industrial Refers to Shenzhen SEG Industrial Investment Co., Ltd.
SEG Credit Refers to Shenzhen SEG Credit Co., Ltd.
Nantong SEG Refers to Nantong SEG Times Plaza Management Co., Ltd.
Nantong SEG Operation Refers to Nantong SEG Commercial Operation Management Co., Ltd.
SEG Intelligent Refers to Suzhou SEG Intelligent Technology Co., Ltd.
SEG Longyan Refers to Shenzhen SEG Longyan Energy Technology Co., Ltd.
Hangzhou SEG Longyan Refers to Hangzhou SEG Longyan Energy Technology Co., Ltd.
SEG Lianzhong Refers to Shenzhen SEG Lianzhong Internet Technology Co., Ltd.
SEG Zhongtong Refers to Shenzhen SEG Zhongtong Technology Co., Ltd.
SEG Real Estate Refers to Shenzhen SEG Real Estate Investment Co., Ltd.
SEG Property Development Refers to Shenzhen SEG Property Development Co., Ltd.
SEG Recreation Refers to Shenzhen SEG Recreation Enterprise Development Co., Ltd.
SegMaker Refers to Shenzhen SegMaker Co., Ltd.
SEG Property Management Refers to Shenzhen SEG Property Management Co., Ltd.
SEG New Urban Refers to Shenzhen SEG New Urban Construction Development Co., Ltd.
SEG Yicheng Refers to Shenzhen SEG Yicheng Science and Technology Co., Ltd.
SEG Real Estate, SEG Property Development, SEG Recreation
Target companies Refers to
and SegMaker that major assets are injected into
Huizhou Stars Refers to Huizhou Stars Real Estate Development Co., Ltd.
SEG Wisdom Refers to SEG Wisdom Sports and Culture Development Co., Ltd.
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Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
Definition Refers to Description
Mellow Orange Hotel Refers to Shenzhen Mellow Orange Business Hotel Management Co., Ltd
Maker Hotel Refers to SEG Maker Hotel Management Co., Ltd.
Huakong SEG Refers to Shenzhen Huakong SEG Co., Ltd.
SEG Navigations Refers to Shenzhen SEG GPS Scientific Navigations Co., Ltd.
Advanced Solar Refers to Advanced Solar Power (Hangzhou) Inc.
Wangyu Technology Refers to Shanghai Wangyu Information Technology Co., Ltd.
State-owned Assets Supervision and Administration Commission
Shenzhen SASAC Refers to
of Shenzhen Municipality
CSRC Refers to China Securities Regulatory Commission
Shenzhen Securities Regulatory Bureau of China Securities
Shenzhen Securities Regulatory Bureau Refers to
Regulatory Commission
Articles of Association Refers to Articles of Association of Shenzhen SEG Co., Ltd.
Unless otherwise specified, the amount referred
Refers to Amount in RMB
to in the report
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Full Text of Q3 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
Closing amount Year-end amount Year-on-year increase/decrease
Total assets (Yuan) 6,219,276,361.52 6,992,590,420.75 -11.06%
Net assets attributable to shareholders of the
1,978,103,216.94 1,917,228,370.15 3.18%
listed company (Yuan)
From the beginning of
Current reporting Year-on-year Year-on-year
the year to the end of
period increase/decrease increase/decrease
the reporting period
Operating revenue (Yuan) 561,704,545.25 112.14% 1,444,642,633.92 68.55%
Net profit attributable to shareholders of the
40,399,673.95 110.59% 138,066,661.89 99.54%
listed company (Yuan)
Net profit attributable to shareholders of the
listed company after deduction of 35,513,724.94 81.48% 88,370,597.84 66.86%
non-recurring profit or loss (Yuan)
Net cash flow arising from operating
-- -- 88,413,669.12 -68.44%
activities (Yuan)
Basic EPS (Yuan/Share) 0.0327 110.97% 0.1117 99.46%
Diluted EPS (Yuan/Share) 0.0327 110.97% 0.1117 99.46%
Weighted average ROE 2.07% 1.00% 7.09% 3.78%
Total share capital of the Company as of the trading day before disclosure:
Total share capital of the Company as of the trading day before
1,235,656,249
disclosure (share)
Fully diluted earnings per share based on the latest share capital
0.1117
(Yuan/share)
Items and amount of non-recurring profit or loss:
√ Applicable □ Not applicable
Unit: Yuan
Item Amount Remarks
Gains on reduction of holding-shares of
Profit or loss on disposal of non-current assets (including the write-off of
57,715,563.13 Huakong SEG and transfer of the
assets depreciation reserves)
equity of SEG Credit
Tax return, reduction or exemption with unauthorized approval or without
0.00
any official approval document
Government subsidies recognized in current profit or loss (except those
closely related to corporate business and enjoyed according to national 3,503,363.71
standards or certain quota)
Fund appropriation charges for non-financial entities recognized in current
1,049,720.00
profit or loss
Gains on less acquisition costs of subsidiaries, associates and joint ventures
0.00
than the accrued fair value of the investee's identifiable net assets
Profit or loss on non-monetary assets exchange 0.00
Profit or loss on investment or asset management in proxy 18,959,696.02
Provision for impairment of assets due to force majeure (such as natural
0.00
disasters)
Profit or loss on debt restructuring 0.00
Corporate restructuring costs, such as staffing expenses and integration
0.00
costs
Profit or loss on the part exceeding the fair value in unfair transactions 0.00
Current net profit or loss of subsidiaries incurred by business combination 0.00
under common control from the beginning of the reporting period to the
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Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
Item Amount Remarks
date of merger
Profit or loss on contingencies unrelated to business operation of the
0.00
Company
Profit or loss on changes in fair value due to holding of trading financial
assets and trading financial liabilities and investment income from disposal
of trading financial assets, trading financial liabilities and 0.00
available-for-sale financial assets apart from valid hedging operations
related to business operation of the Company
Transferred-back impairment provision for accounts receivable, for which
0.00
separate impairment tests are carried out
Profit or loss on consignment loan 0.00
Profit or loss on changes in fair value of investment property subsequently
0.00
measured by the fair value
Impact of one-time adjustment on the current profit or loss as required by
0.00
taxation or accounting laws and regulations
Trustee fee from entrusted operation 104,499.02
Estimated liabilities of Nanning SEG
Other non-operating income and expenses except the above-mentioned arising from lawsuits and payment of
-13,453,613.88
items the liquidated damages and poverty
alleviation funds by SEG Real Estate.
Other items conforming to the definition of non-recurring profit and loss 0.00
16,969,807.00
Less: Amount of affected income tax 1,213,356.95
Amount of influence of minority shareholders' equity (after tax) 49,696,064.05
Total 57,715,563.13 --
An explanation shall be made with regard to the Company's considerations for defining non-recurring profit and loss according to the
Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profit
and Loss and the reason of classifying the non-recurring profit and loss listed in this announcement as recurring.
□ 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 preferred
Total number of ordinary shareholders at the
67,654 shareholders restored with the 0
end of the reporting period
voting rights (if any)
Shares held by top 10 shareholders
Quantity of Information on pledged or frozen
Name of Nature of Proportion of shares
Shares held restricted shares
shareholder shareholder shareholding
held Share status Quantity
Shenzhen SEG State-owned legal
56.70% 700,628,759 450,857,239
Group Co., Ltd. person
Domestic natural
Liu Guocheng 0.57% 7,052,702 0
person
Shanghai Juzhang
Investment Domestic general
0.40% 4,967,841 0
Management Co., corporate
Ltd.
Domestic natural
Liu Guohong 0.26% 3,213,598 0
person
Overseas natural
Gong Qianhua 0.24% 2,940,000 0
person
China Securities Domestic general
0.18% 2,271,900 0
Finance corporate
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Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
Corporation
Limited
Domestic natural
Xu Yueying 0.14% 1,790,007 0
person
China Hi-tech State-owned legal
0.12% 1,500,000 0
Group Corporation person
Domestic natural
Zeng Ying 0.11% 1,300,000 0
person
Domestic natural
Du Xinye 0.10% 1,223,000 0
person
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 listed
Liu Guocheng 7,052,702 7,052,702
foreign shares
Shanghai Juzhang Investment RMB ordinary
4,967,841 4,967,841
Management Co., Ltd. shares
Domestically listed
Liu Guohong 3,213,598 3,213,598
foreign shares
Domestically listed
Gong Qianhua 2,940,000 2,940,000
foreign shares
China Securities Finance Corporation RMB ordinary
2,271,900 2,271,900
Limited shares
Domestically listed
Xu Yueying 1,790,007 1,790,007
foreign shares
RMB ordinary
China Hi-tech Group Corporation 1,500,000 1,500,000
shares
Domestically listed
Zeng Ying 1,300,000 1,300,000
foreign shares
RMB ordinary
Du Xinye 1,223,000 1,223,000
shares
Shenzhen SEG Group Co., Ltd. has no association relationship with other shareholders and is not a
Explanations on the association
person acting in concert with other shareholders as specified in the Management Methods for
relationship or concerted action among
Disclosure of Information on Changes in Shareholding Status of Shareholders of Listed Companies.
the above-mentioned shareholders
It is unclear whether other shareholders are persons acting in concert.
Information on top 10 ordinary In the foregoing top 10 shareholders, Du Xinye holds 0 share of the Company in the ordinary
shareholders participating in securities account and 1,223,000 shares in the margin trading investor credit account, which are 1,223,000
margin trading (if any) shares of the Company in total.
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
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
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Full Text of Q3 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) Balance Sheet Statement
Increase or decrease
Item Closing balance Opening balance Difference over the previous year
(%)
Notes receivable and accounts
94,960,623.30 61,934,101.56 33,026,521.74 53.33%
receivable
Loans and advances 399,387,108.14 -399,387,108.14 -100.00%
Investment property 1,045,353,312.48 676,888,184.90 368,465,127.58 54.44%
Other non-current assets 128,250,017.29 93,287,630.00 34,962,387.29 37.48%
Short-term borrowing 727,000,000.00 534,792,000.00 192,208,000.00 35.94%
Notes payable and accounts
262,902,343.74 470,088,158.63 -207,185,814.89 -44.07%
payable
Advance receipts 417,172,922.34 707,031,729.23 -289,858,806.89 -41.00%
Payroll payable 25,837,106.38 41,014,602.99 -15,177,496.61 -37.01%
Tax payable 167,199,380.13 243,477,530.43 -76,278,150.30 -31.33%
Non-current liabilities due within
64,276,762.54 258,414,693.92 -194,137,931.38 -75.13%
one year
Estimated liabilities 8,296,619.85 1,137,019.85 7,159,600.00 629.68%
1. Notes receivable and accounts receivable increased by RMB 33.03 million or 53.33% year on year, mainly because SEG Property
Management confirmed property management income worth RMB 36.97 million.
2. Loans and advances decreased by 100% year on year, mainly because this item was loans and advances of SEG Credit and was no
longer incorporated as the equity of SEG Credit was sold.
3. Investment property increased by RMB 368.47 million or 54.44% year on year, mainly because the commercial podium built by
Nantong SEG worth RMB 410.76 million was transferred to investment property for accounting.
4. Other non-current assets increased by RMB 34.96 million or 37.48% year on year, mainly because SEG Longyan paid for
equipment in advance.
5. Short-term borrowings increased by RMB 192.21 million or 35.94% year on year, mainly because bank loans increased in the
reporting period.
6. Notes payable and accounts payable decreased by RMB 207.19 million or 44.07% year on year, mainly because SEG New Urban
paid the project fund in the reporting period.
7. Advance receipts decreased by RMB 289.86 million or 41% year on year, mainly because SEG New Urban transferred the advance
payment for houses to operating income in the reporting period.
8. Payroll payable decreased by RMB 15.18 million or 37.01% year on year, mainly because the wages and bonuses accrued in the
previous year were granted in the reporting period.
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Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
9. Tax payable decreased by RMB 76.28 million or 31.33% year on year, mainly because the corporate income tax for 2017 was paid
in the reporting period.
10. Non-current liabilities due within one year decreased by RMB 194.14 million or 75.13% year on year, mainly because SEG Real
Estate repaid loans due within one year.
11. Estimated liabilities increased by RMB 7.16 million or 629.68% year on year, mainly because Nanning SEG paid compensation
arising from lawsuits in the reporting period.
(II) Profit Statement
Increase or decrease
Amount of the current Amount of the previous
Item Difference over the previous
period period
year (%)
Operating income 1,444,642,633.92 857,121,747.39 587,520,886.53 68.55%
Interest income 6,480,864.92 42,344,251.52 -35,863,386.60 -84.69%
Service charges and commissions
888,016.65 -888,016.65 -100.00%
income
Operating costs 994,429,779.15 618,357,775.28 376,072,003.87 60.82%
Tax and surcharge 42,196,977.10 14,043,362.00 28,153,615.10 200.48%
Financial expenses 52,818,041.75 16,196,131.68 36,621,910.07 226.12%
Investment income 59,390,854.81 4,144,939.36 55,245,915.45 1,332.85%
Non-operating income 4,942,048.24 11,513,024.15 -6,570,975.91 -57.07%
Non-operating expenses 14,951,136.75 1,583,510.27 13,367,626.48 844.18%
Income tax expenses 93,011,306.00 52,159,868.66 40,851,437.34 78.32%
Net profit attributable to owners of the
138,066,661.89 69,193,064.76 68,873,597.13 99.54%
parent company
Minority interest 61,153,347.93 19,074,811.94 42,078,535.99 220.60%
Other comprehensive income -56,797.37 -158,032.32 101,234.95 64.06%
1. Operating income increased by RMB 587.52 million or 68.55% year on year, mainly because the income of SEG New Urban
increased by RMB 592.80 million.
2. Interest income decreased by RMB 35.86 million or 84.69%, mainly because the loan business of SEG Credit declined, that because
the equity transfer of SEG Credit was completed in April 2018, and the service consulting business will not incurred.
3. Service charges and commissions income decreased by RMB 8.88 million or 100% year on year, mainly because the equity transfer
of SEG Credit was completed in April 2018, and the service consulting business will not incurred.
4. Operating costs increased by RMB 376.0 million or 60.82% year on year, mainly because the costs of SEG New Urban increased by
RMB 392.10 million.
5. Tax and surcharge increased by RMB 28.15 million or 200.48% year on year, mainly because increase in the income of SEG New
Urban resulted in increase in tax expenses.
6. Financial expenses increased by RMB 36.62 million or 226.12% year on year, mainly because in the reporting period (1) the real
estate project of SEG New Urban was completed and capitalization of borrowing interests; (2) increase in loans resulted in increase in
interest expenses.
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Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
7. Investment income increased by RMB 55.25 million or 1,332.85% year on year, mainly due to investment income from sales of the
shares of Huakong SEG.
8. Non-operating income decreased by RMB 6.57 million or 57.07% year on year, mainly because the compensation for shareholders
of Suzhou SEG RMB 3.50 million and government subsidies for Nantong SEG RMB 2.30 million were incurred in the same period
last year, while such income was not incurred in the reporting period.
9. Non-operating expenses increased by RMB 13.37 million or 844.18% year on year, mainly because in the reporting period (1) SEG
Real Estate paid for contract termination (2017 Y. 0307 M. C. No. 6835); (2) Nanning SEG paid compensation arising from lawsuits.
10. Income tax expenses increased by RMB 40.85 million or 78.32% year on year, mainly because in the reporting period (1) the
Company gained the investment income of RMB 45.70 million from the sales of the shares of Huakong SEG; (2) the income of SEG
New Urban increased.
11. Net profit attributable to owners of the parent company increased by RMB 68.87 million or 99.54% year on year, mainly because
in the reporting period (1) the Company gained the investment income of RMB 45.70 million from the sales of the shares of Huakong
SEG; (2) the income of SEG New Urban increased.
12. Minority interest increased by RMB 42.08 million or 220.60% year on year, mainly because SEG ECO project of SEG Real Estate
reached the income recognition criteria and the sales proceeds received in advance are transferred to income, resulting in increase in
net profit.
13. Other comprehensive income increased by RMB 101.23 thousand or 64.06% year on year, mainly because the value of shares of
Youhao Group held by SEG Baohua, a holding subsidiary of the Company, in the reporting period declined less than in the same
period last year.
(III) Cash Flow Statement
Increase or
Amount of the current Amount of the previous
Item Difference decrease over the
period period
previous year (%)
Cash received from interest, fees and
6,311,198.08 47,251,322.15 -40,940,124.07 -86.64%
commissions
Tax refunds 246,846.66 749,351.94 -502,505.28 -67.06%
Net increase in customer loans and
-15,664,988.00 -29,325,104.19 13,660,116.19 46.58%
advances
Cash received from investment income 64,918,960.93 12,926,977.20 51,991,983.73 402.20%
Cash paid for purchase and construction
of fixed assets, intangible assets and 66,254,262.96 122,826,868.88 -56,572,605.92 -46.06%
other long-term assets
Cash received by absorbing investments 980,000.00 151,637,998.48 -150,657,998.48 -99.35%
Cash received from borrowing 979,000,000.00 650,000,000.00 329,000,000.00 50.62%
Cash paid for debt repayment 924,664,813.71 681,901,725.48 242,763,088.23 35.60%
Dividends and profits paid by
26,262,417.89 47,286,452.85 -21,024,034.96 -44.46%
subsidiaries to minority shareholders
1. Cash received from interest, fees and commissions decreased by RMB 40.94 million or 86.64% year on year, mainly because the
equity transfer of SEG Credit was completed in April 2018 and the cash flow statement of SEG Credit was no longer consolidated
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Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
since May 2018.
2. Tax refunds decreased by RMB 502.5 thousand or 67.06% year on year, mainly because Suzhou SEG received tax refunds of RMB
599.7 thousand in the same period last year. After adjustment of the operation model in 2017, the cash flow statement of Suzhou SEG
was no longer consolidated in 2018.
3. Net increase in customer loans and advances increased by RMB 13.66 million or 46.58% year on year, mainly due to decrease in the
size of loans granted by SEG Credit in the reporting period. The equity transfer of SEG Credit was completed in April 2018 and the
cash flow statement of SEG Credit was no longer consolidated since May 2018.
4. Cash received from investment income increased by RMB 51.99 million or 402.20% year on year, mainly because the Company
received cash by sales of the shares of Huakong SEG in the reporting period.
5. Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets decreased by RMB 56.57
million or 46.06% year on year, mainly because SEG Longyan incurred RMB 95.32 million for its new industrial park.
6. Cash received by absorbing investments decreased by RMB 150.66 million or 99.35% year on year, mainly because SEG Longyan
and SEG Lianzhong received investments from minority shareholders in the same period last year.
7. Cash received from borrowing increased by RMB 329 million or 50.62% year on year, mainly due to increase in bank loans
received by the Company in the reporting period.
8. Cash paid for debt repayment increased by RMB 242.76 million or 35.60% year on year, mainly due to increase in bank loans due
for repayment of the Company in the reporting period.
9. Dividends and profits paid by subsidiaries to minority shareholders decreased by RMB 21.02 million or 44.46% year on year,
mainly because the dividends and profits paid by SEG Credit and Suzhou SEG corresponding period of last year, which amount is
14.97 million is not occurred in the reporting period.
II. Progress and impacts of major events and analysis of solutions
√ Applicable □ Not applicable
There are no other major events than major events in the following table.
Inquiry Index for the Websites Disclosing
Overview of Major Events Disclosure Date
the Temporary Reports
1. On April 9, 2018, the Company, its
holding subsidiaries, and SEG Group
entered into the Equity Transfer Agreement
concerning the transfer of 62% of the equity
of SEG Credit to SEG Group at the price of
RMB 126,699,000. On April 18, 2018, SEG
Credit completed business registration
http://www.cninfo.com.cn
alteration for equity transfer where the
August 31, 2018 2018 Semi-annual Report of Shenzhen SEG
shareholder is changed to SEG Group and
Co., Ltd.
SEG Credit is changed from a holding
subsidiary of the Company to a
wholly-owned subsidiary directly held by
SEG Group. As the short-term financing
certificates of SEG Credit subscribed by the
Company were not due yet at the time of
equity transfer, the current account balance
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RMB 185,000,000 arising from such
short-term financing certificates constituted
indirect related-party current account with
the wholly-owned subsidiary of the
controlling shareholder. As of August 20,
2018, such balance and income have been
recovered in advance.
2. Nanning Haiqi Real Estate Development http://www.cninfo.com.cn
Co., Ltd. vs. Nanning SEG Electronics Announcement of Shenzhen SEG Co., Ltd.
September 26, 2016
Market Co., Ltd. & Shenzhen SEG Co., Ltd. on the Receipt of Court Summons and civil
for the dispute over the house lease contract Complaints by the Company
(case number: 2016 G. 0102 M. C. No.
3653): According to the second-instance
judgment, Nanning SEG shall pay to
Nanning Haiqi the liquidated damages of
RMB 8 million and the attorney fee of RMB http://www.cninfo.com.cn
263,000 and shall pay the case acceptance August 31, 2018 2018 Semi-annual Report of Shenzhen SEG
fee of RMB 134,238. The Company applied Co., Ltd.
for retrial. On July 11, 2018, the Higher
People's Court of Guangxi accepted the
case.
3. SEG Industrial vs. Shenzhen Wonder
Industry Co., Ltd., Liu Guiyun & Liu Yu for
the dispute over the purchase and sales
contract (case number: (2017) Y. 0304 M.
C. No. 5092): The amount involved was http://www.cninfo.com.cn
RMB 8,394,100. The first-instance Announcement of Shenzhen SEG Co., Ltd.
September 20, 2018
judgment of the case has taken effect. The on the Progress of Litigation of Holding
claims filed by SEG Industrial have Subsidiaries
basically been supported. Only the overdue
fine has not been fully supported, and SEG
Industrial has applied for enforcement to the
court.
4. SEG Industrial vs. Shenzhen Yixin
Zhongtian Technology Co., Ltd., Zhe
Shaojun & Zhao Xiaoyan for the dispute
over the purchase and sales contract (case http://www.cninfo.com.cn
number: (2017) Y. 0304 M. C. No. 5088): Announcement of Shenzhen SEG Co., Ltd.
September 20, 2018
The amount involved was RMB 14,805,700. on the Progress of Litigation of Holding
The first-instance judgment of the case has Subsidiaries
taken effect. The claims filed by SEG
Industrial have basically been supported.
Only the overdue fine has not been fully
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Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
supported.
5. SEG Industrial vs. Shenzhen Comnet
Technology Co., Ltd., Xiao Qingshan, Zhou
Ronghua, Anhua Meishan Small Loan Co.,
Ltd. & Shenzhen Baiyide Technology Co.,
Ltd. for the dispute over the purchase and
http://www.cninfo.com.cn
sales contract (case number: (2017) Y. 0304
Announcement of Shenzhen SEG Co., Ltd.
M. C. No. 7976): The amount involved was September 20, 2018
on the Progress of Litigation of Holding
RMB 5,155,400. According to the
Subsidiaries
first-instance judgment, SEG Industrial was
the prevailing party. The counterparty
arrested the first-instance judgment and
instituted an appeal. The case is under the
second instance trial.
6. SEG Industrial vs. Shenzhen Runneng
Digital Technology Co., Ltd., Xiao
Qingshan, Zhou Ronghua, Anhua Meishan
Small Loan Co., Ltd. & Shenzhen Baiyide
Technology Co., Ltd. for the dispute over
http://www.cninfo.com.cn
the purchase and sales contract (case
Announcement of Shenzhen SEG Co., Ltd.
number: (2017) Y. 0304 M. C. No. 7977): September 20, 2018
on the Progress of Litigation of Holding
The amount involved was RMB 15,345,000.
Subsidiaries
According to the first-instance judgment,
SEG Industrial was the prevailing party. The
counterparty arrested the first-instance
judgment and instituted an appeal. The case
is under the second instance trial.
7. In the reporting period, Shenzhen
Norbida Environmental Protection Co., Ltd.
sued against Shenzhen SEG Property
http://www.cninfo.com.cn
Development Co., Ltd. for the dispute over
August 31, 2018 2018 Semi-annual Report of Shenzhen SEG
the cooperation contract (case number:
Co., Ltd.
(2018) S. Z. S. Zi. No. 987): The amount
involved was RMB 3,989,700. The case is
under trial.
8. In the reporting period, Shenzhen SEG
New Urban Construction Development Co.,
Ltd. sued against MINMAXS City http://www.cninfo.com.cn
Investment Management Co., Ltd. and August 31, 2018 2018 Semi-annual Report of Shenzhen SEG
Belugaplan Culture Development (Dalian) Co., Ltd.
Co., Ltd. respectively for disputes over
lease contracts. The amount involved was
13
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
RMB 8,541,500. Both cases are under trial.
9. In the reporting period, Nantong SEG
Commercial Operation Management Co.,
Ltd. was involved in 15 cases (including
four additional cases) because the
merchants delayed the payment of rents and
http://www.cninfo.com.cn
management expenses to Nantong SEG
August 31, 2018 2018 Semi-annual Report of Shenzhen SEG
Operation, resulting in disputes over lease
Co., Ltd.
contracts. The amount involved was RMB
7,416,700. 14 cases have been settled and
Nantong SEG Operation was the prevailing
party. One case is under the second instance
trial.
10. In the reporting period, Nantong SEG
was involved in 16 cases (including 11
http://www.cninfo.com.cn
additional cases and Nantong SEG was the
August 31, 2018 2018 Semi-annual Report of Shenzhen SEG
defendant in two cases) for disputes over
Co., Ltd.
decoration contracts. The amount involved
was RMB 34,156,300.
11. :
Huizhou Stars, a holding subsidiary of SEG
Real Estate (a holding subsidiary of the http://www.cninfo.com.cn/
Company), intends to mortgage its Announcement of Shenzhen SEG Co., Ltd.
August 28, 2018
self-owned property: 50 commercial on the Resolution of the 38th Extraordinary
properties in 1-5F of SEG Holiday Plaza to Meeting of the 7th Board of Directors
apply for a loan with the general credit limit
of RMB 150,000,000 to the bank for
repayment of borrowing from its
shareholders.
12. Huizhou Stars, a holding subsidiary of
SEG Real Estate (a holding subsidiary of
http://www.cninfo.com.cn/
the Company), acquired the state-owned
Announcement of Shenzhen SEG Co., Ltd.
land use right of the land parcel (No.
August 29, 2018 on the Acquisition of the Land Use Right by
GP2018-7) located in Huizhou, Guangdong
Huizhou Stars Real Estate Development
transferred by Huizhou Land Resources
Co., Ltd.
Bureau by listing and bidding at the price of
RMB 133,000,000.
14
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
13. &
: Meeting of the 7th Board of Directors
Through negotiation between the Company
and intermediaries such as brokers and legal
consultants hired for the issuance of
corporate bonds, the Company adjusted the
content of the "purchaser" clause in the
corporate bond public offering program as
follows:
1) Before adjustment:
The corporate bonds are issued to no more
than 200 qualified investors that comply
with the Regulations on the Administration
of Issuance and Transaction of Corporate
Bonds (the directors, supervisors, senior
executives and shareholders of the issuer
that hold more than 5% of the shares of the
http://www.cninfo.com.cn/
Company can subscribe and transfer
Announcement of Shenzhen SEG Co., Ltd.
corporate bonds issued by the Company,
October 11, 2018 on the Resolution of the 4th Extraordinary
which are not subject to the qualifications of
General Meeting in 2018 of Shenzhen SEG
qualified investors).
Co., Ltd.
2) After adjustment:
The corporate bonds are issued to qualified
investors that comply with the Regulations
on the Administration of Issuance and
Transaction of Corporate Bonds and other
laws and regulations through public
offering.
The Board of Directors and authorized
personnel of the Board of Directors are
granted with full power to handle public
offering of corporate bonds to qualified
investors.
14. :
September 22, 2018 on Mortgage and Counter Guarantee for
Based on the situation of the bond market,
the Issuance of Corporate Bonds
in order to lower the general costs of bond
15
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
issuance and ensure successful issuance, the
Company intends to hire the third-party
credit enhancement institution Guangdong
Utrust Financial Leasing Co., Ltd. (Utrust)
to enhance credit for its bond issuance. On a
fair and rational basis, the parties agree that
the guarantee fee is collected at the rate of http://www.cninfo.com.cn/
0.6% of the total bonds issued through Announcement of Shenzhen SEG Co., Ltd.
negotiation. As required by the guarantor, October 11, 2018 on the Resolution of the 4th Extraordinary
the Company intends to mortgage its General Meeting in 2018 of Shenzhen SEG
commercial property located in Co., Ltd.
Huaqiangbei, Futian District, Shenzhen to
Utrust for counter guarantee. The general
meeting of the Company authorized the
chairman or an authorized proxy of the
chairman of the Company to sign the above
counter guarantee contract as required.
Announcement of Shenzhen SEG Co., Ltd.
July 19, 2018
on the Resignation of Directors
http://www.cninfo.com.cn/
Announcement of Shenzhen SEG Co., Ltd.
August 29, 2018
15. Resignation of the director Zhang on the Resolution of the 39th Extraordinary
Guangliu and election of Gao Jianbo as a Meeting of the 7th Board of Directors
director http://www.cninfo.com.cn/
Announcement of Shenzhen SEG Co., Ltd.
September 14, 2018 on the Resolution of the 3rd Extraordinary
General Meeting in 2018 of Shenzhen SEG
Co., Ltd.
http://www.cninfo.com.cn/
16. Application for the general loan limit of Announcement of Shenzhen SEG Co., Ltd.
July 21, 2018
RMB 500 million to three banks on the Resolution of the 36th Extraordinary
Meeting of the 7th Board of Directors
http://www.cninfo.com.cn
17. Reduction of holding-shares of Announcement of Shenzhen SEG Co., Ltd.
Shenzhen Huakong SEG Co., Ltd. which is August 23, 2018 on the Progress of Reduction of
not implemented yet in the reporting period Holding-shares of Shenzhen Huakong SEG
Co., Ltd.
Announcement of Shenzhen SEG Co., Ltd.
18. Nantong SEG Times Plaza Co., Ltd.'s on Nantong SEG Times Plaza Co., Ltd.'s
guarantee and joint and several liability for September 22, 2018 Phased Guarantee for Bank Mortgage
bank mortgage loans of customers who have Loans of Customers who Have Purchased
purchased the developed project the Developed Project
October 11, 2018 http://www.cninfo.com.cn/
16
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
Announcement of Shenzhen SEG Co., Ltd.
on the Resolution of the 4th Extraordinary
General Meeting in 2018 of Shenzhen SEG
Co., Ltd.
17
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
III. Commitments not fulfilled in the reporting period by the actual controller of the Company, shareholders, buyers, or other related parties
√ Applicable □ Not applicable
Commitments Subject Type Content Commitment date Commitment term Performance
Commitment for
Not applicable
share reform
Commitment made in
the acquisition report
Not applicable
or the equity change
report
"After updating and restructuring of SEG Industrial Building, SEG Economy Extended
Building, and SEG Recreation Industry Building, the area of added part that belongs performance
to SegMaker, SEG Recreation and SEG Property is 2,855.20 m2. SEG Group (The Company has
undertakes that the use of the temporary buildings belonged to SegMaker, SEG applied for
Recreation and SEG Property will be renewed after expiration of the two-year use extension of the
duration. In case when, due to failure in renewal of use of temporary buildings, the license for the said
listed company has any loss or the income during the period from expiration of the property and
performance commitment period to expiration of the evaluated income expected submitted
Commitments made period is lower than the expected compensation, or the listed company has any loss application
Shenzhen SEG
during major assets Other commitment because the temporary buildings are required to be dismantled by governmental August 3, 2016 April 20, 2024 materials to the
Group Co., Ltd.
restructuring organs during the period from expiration of the performance commitment period to relevant competent
expiration of the evaluated income expected period, SEG Group will compensate authority for
the listed company timely and in full amount according to the following approval. SEG
compensation methods: Group is assisting
1. SEG Group has made commitments for the performance of the subject company with such extension
within three years after completion of major asset restructuring. Influence of the application. The
updating and restructuring project has been taken into account in the commitments. renewal application
2. The amount of compensation for the income that is lower than the expected is still under
income during the period from expiration of the performance commitment period to approval and the
18
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
expiration of the evaluated income expected period = (the predicted accumulated license for renewal
income to the end of the report period - actual accumulated income to the end of the is not obtained yet.)
report period) - the compensated amount.
3. The loss caused when the temporary buildings are required to be dismantled by
governmental organs during the period from expiration of the performance
commitment period to expiration of the evaluated income expected period = the
dismantling cost and compensation amount related - (the accumulated total income
to the time the buildings are dismantled- predicted accumulated income during the
predication period). Note: the predicted income refers to the net value remained
after the predicted total income from the newly added temporary buildings in the
evaluation reports of the subject companies minuses the allocated investment cost
during the operating period and the amount influenced by permanent rent
termination predicted in the evaluation report. Shenzhen SEG should employ an
audit agency with security practice qualification recognized by SEG Group to
provide a formal audit report on the compensation methods for the property
investment within the compensation scope of the report period within four months at
the end of each accounting year during the compensation period. SEG Group should
compensate in cash any property investment and compensation items within the
compensation scope of the report period. Shenzhen SEG should calculate the
payable compensation amount within 15 working days upon final specific review
opinions provided by the audit agency, and send a written notice to SEG Group.
Within 30 working days upon receipt of the written notice from Shenzhen SEG,
SEG Group should pay the compensation in cash in full amount."
Commitment made at
the time of initial
Not applicable
public offerings or
refinancing
Commitment on
Not applicable
equity incentives
19
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
Other commitments
made to small and
medium-sized Not applicable
shareholders of the
Company
Commitments
fulfilled as scheduled No
or not
If commitments are The new property in the reconstruction project of SEG Industrial Building and other two buildings is a temporary building. According to the license, the service duration of the temporary
not fulfilled as building is from April 21, 2016 to April 20, 2018. Upon expiration, the licensed service duration can be extended for a period of one year. The Company has applied for extension of the
scheduled, specify the license for the said property and submitted application materials to the relevant competent authority for approval. SEG Group is assisting with such extension application. The renewal
reasons and further application is still under approval and the license for renewal is not obtained yet.
work plans
IV. Estimation of operating results of 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 last year and
causes
□ Applicable √Not applicable
20
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
V. Securities investment
√ Applicable □ √Not applicable
Profit or loss Accumulative Amount of
Accounting from changes changes in purchase Amount of Profit or loss in
Stock Short form of Initial Opening book Closing book Source of
Stock type measurement in fair value in fair value in the sales in the the reporting Accounting item
code the security investment cost value value capital
mode the current counted into current current period period
period equity period
Domestic
and Youhao Measurement Available-for-sale Self-owned
600778 90,405.00 365,918.49 -77,674.24 288,244.25
overseas Group by fair value financial assets capital
shares
Domestic
and Huakong Measurement Self-owned
000068 183,372,210.43 171,297,598.43 42.83 -9,538,391.50 -9,694,393.72 152,064,856.04 Other assets
overseas SEG by fair value capital
shares
Domestic
Measurement
and SEG Available-for-sale Self-owned
832770 8,275,321.43 with the cost 13,515,392.83 0.00 0.00 0.00 13,515,392.83
overseas Navigations financial assets capital
method
shares
Other securities investments held at
-- -- --
the end of the period
Total 191,737,936.86 -- 185,178,909.75 -77,631.41 0.00 -9,538,391.50 -9,694,393.72 165,868,493.12 -- --
Disclosure date of the
announcement on approval of
securities investments by the Board
of Directors
Disclosure date of the
announcement on approval of
securities investments by the
General Meeting (if any)
21
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
VI. Financial management by agent
√ Applicable □ √Not applicable
Unit: RMB 10,000
Amount overdue
Type Source of capital Amount incurred Outstanding balance
unrecovered
Financial products of
Self-owned capital 62,600 18,100 0
banks
Total 62,600 18,100 0
Details of financial management by agent with single significant amount or low security, poor liquidity or no capital preservation
√Applicable □ Not applicable
Unit: ten thousand yuan
Actu
Actu
al Entr
al Sum
retur uste
loss Accr mar
Rem n of d
and ued Thro y
uner Refe Exp gain fina
gain prov ugh and
Type Fun Fun ation renc ecte s ncin
Name Prod amo ision legal relat
of Amo d Start End d conf e d and g
of uct unt s for proc ed
trust unt sour date date usag irma annu yield losse plan
trustee type in impa edur quer
ee ce e tion al (if s in in
the irme es or y
meth yield any) the the
repo nt (if not inde
od repo futur
rting any) x (if
rting e or
peri any)
peri not
od
od
Non 3,00 Inter Apri Apri High repa 5.00 147. 0 Pre YES YES
guar 0 nal l l 20, liqui y the % 95 matu
ante fund 26 2019 dity capit rity
Indust ed s , asset al
rial float 20 s& and
and ing 18 Debt inter
Comm inco asset est
Bank
ercial me s& after
Bank type Othe matu
of r rity
China asset
s&
portf
olio
3,00 -- -- -- -- -- -- 147. 0 -- -- -- -- --
Total
0 95
Financial management by agent of which the principal is expected not to be recovered or other circumstances that may result in
22
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
impairment
□ Applicable √ Not applicable
VII. Derivative investment
□ Applicable √ Not applicable
No derivative investment is involved in the reporting period.
VIII. Registration form for investigations, communication and interviews in the reporting
period
√ Applicable □ Not applicable
Time Means Type Investigation Index
Inquire about the number of shareholders as of September 15. The Company has
September 17 Phone call Individual given a reply according to the register of shareholders released by the Securities
Depository and Clearing Corporation.
Inquire about the recent operation of the Company. The Company has given a basic
September 21 Phone call Individual
reply and suggests referring to the 2018 Semi-Annual Report disclosed for details.
Inquire about the recent operation of the Company. The Company has given a basic
September 21 Phone call Individual
reply and suggests referring to the 2018 Semi-Annual Report disclosed for details.
IX. Illegal external guarantee
□ Applicable √ Not applicable
No illegal external guarantee is involved in the reporting period.
X. 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.
23
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
Chapter 4 Financial Statements
I. Financial Statements
1. Consolidated Balance Sheet Statement
Prepared by: Shenzhen SEG Co., Ltd.
September 30, 2018
Unit: Yuan
Item Closing balance Opening balance
Current assets:
Monetary funds 913,728,679.25 951,482,605.92
Deposit reservation for balance
Loans to other banks
Financial assets measured by fair value
with changes included in current gains and
losses
Derivative financial assets
Notes receivable and accounts
94,960,623.30 61,934,101.56
receivable
Including: Notes receivable
Accounts receivable 94,960,623.30 61,934,101.56
Prepayment 37,914,021.76 34,718,079.54
Premiums receivable
Reinsurance accounts receivable
Reinsurance deposit receivable
Other accounts receivable 94,841,153.68 96,057,159.50
Redemptory monetary capital for
resale
Inventory 2,724,461,471.48 3,551,100,320.71
Held-for-sale assets
Non-current assets due within one year
Other current assets 634,071,707.58 565,577,916.34
Total current assets 4,499,977,657.05 5,260,870,183.57
Non-current assets:
Loans and advances issued 399,387,108.14
Financial assets available for sale 34,085,457.57 34,161,311.32
Held-to-maturity investment
24
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
Long-term receivables
Long-term equity investment 184,909,829.55 211,973,322.32
Investment property 1,045,353,312.48 676,888,184.90
Fixed assets 58,654,732.03 62,404,988.93
Construction in progress 88,083,295.64 71,745,514.32
Productive biological assets
Oil & gas assets
Intangible assets 31,768,346.63 31,831,783.09
Development expenses
Goodwill 10,328,927.82 10,328,927.82
Long-term expenses to be amortized 109,569,947.95 109,813,025.95
Deferred income tax assets 28,294,837.51 29,898,440.39
Other non-current assets 128,250,017.29 93,287,630.00
Total non-current assets 1,719,298,704.47 1,731,720,237.18
Total assets 6,219,276,361.52 6,992,590,420.75
Current liabilities:
Short-term borrowing 727,000,000.00 534,792,000.00
Loans from central bank
Deposits from customers and interbank
Loans from other banks
Financial liabilities measured by fair
value with changes included in current gains
and losses
Derivative financial liabilities
Notes payable and accounts payable 262,902,343.74 470,088,158.63
Advance receipts 417,172,922.34 707,031,729.23
Financial assets sold for repurchase
Service charges and commissions
payable
Payroll payable 25,837,106.38 41,014,602.99
Taxes payable 167,199,380.13 243,477,530.43
Other payables 993,666,478.86 1,297,372,714.67
Reinsurance accounts payable
Insurance deposit
Customer brokerage deposits
25
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
Securities underwriting brokerage
deposits
Held-for-sale liabilities
Non-current liabilities due within one
64,276,762.54 258,414,693.92
year
Other current liabilities 110,798.12
Total current liabilities 2,658,165,792.11 3,552,191,429.87
Non-current liabilities:
Long-term borrowing 848,000,000.00 754,750,000.00
Bonds payable
Preferred stock
Perpetual capital securities
Long-term payables
Long-term payroll payable
Estimated liabilities 8,296,619.85 1,137,019.85
Deferred income 12,169,416.33 12,336,620.96
Deferred income tax liabilities 85,261,828.43 91,251,453.07
Other non-current liabilities
Total non-current liabilities 953,727,864.61 859,475,093.88
Total liabilities 3,611,893,656.72 4,411,666,523.75
Owners' equity:
Share capital 1,235,656,249.00 1,235,656,249.00
Other equity instruments
Including: Preferred stock
Perpetual capital securities
Capital reserve 156,892,820.25 166,019,870.19
Less: Treasury shares
Other comprehensive income 99,844.49 137,629.12
Special reserve
Surplus reserve 138,710,473.33 138,710,473.33
General risk provision
Undistributed profits 446,743,829.87 376,704,148.51
Total equity attributable to owners of the
1,978,103,216.94 1,917,228,370.15
parent company
Minority shareholders' equity 629,279,487.86 663,695,526.85
26
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
Total owners' equity 2,607,382,704.80 2,580,923,897.00
Total liabilities and owners' equity 6,219,276,361.52 6,992,590,420.75
Legal representative: Chen Huijie Person in charge of accounting: Liu Zhijun Responsible person of the
accounting institution: Ying Huadong
2. Balance Sheet Statement of the Parent Company
Unit: Yuan
Item Closing balance Opening balance
Current assets:
Monetary funds 237,393,642.83 104,463,125.70
Financial assets measured by fair value
with changes included in current gains and
losses
Derivative financial assets
Notes receivable and accounts
405,000.00 1,105,493.93
receivable
Including: Notes receivable
Accounts receivable 405,000.00 1,105,493.93
Prepayment 166,588.88 46,153.86
Other accounts receivable 1,118,421,411.56 1,029,163,364.11
Inventory 395,764.94 395,764.94
Held-for-sale assets
Non-current assets due within one year
Other current assets 165,563,507.05 321,967,708.13
Total current assets 1,522,345,915.26 1,457,141,610.67
Non-current assets:
Financial assets available for sale 33,515,392.83 33,515,392.83
Held-to-maturity investment
Long-term receivables
Long-term equity investment 1,337,091,956.76 1,419,623,352.33
Investment property 255,472,305.33 263,361,638.46
Fixed assets 17,423,276.68 17,919,657.80
Construction in progress 4,852,083.01 4,175,779.03
Productive biological assets
Oil & gas assets
27
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
Intangible assets 1,553,654.44 1,367,666.09
Development expenses
Goodwill
Long-term expenses to be amortized 6,065,828.77 7,673,085.72
Deferred income tax assets 9,814,219.76 8,380,569.73
Other non-current assets
Total non-current assets 1,665,788,717.58 1,756,017,141.99
Total assets 3,188,134,632.84 3,213,158,752.66
Current liabilities:
Short-term borrowing 729,000,000.00 530,000,000.00
Financial liabilities measured by fair
value with changes included in current gains
and losses
Derivative financial liabilities
Notes payable and accounts payable 206,374.11 206,374.11
Advance receipts 16,208,588.56 23,072,035.80
Payroll payable 4,151,792.65 5,391,313.71
Taxes payable 11,124,781.50 18,757,359.46
Other payables 442,952,439.22 749,265,836.65
Held-for-sale liabilities
Non-current liabilities due within one
year
Other current liabilities
Total current liabilities 1,203,643,976.04 1,326,692,919.73
Non-current liabilities:
Long-term borrowing
Bonds payable
Preferred stock
Perpetual capital securities
Long-term payables
Long-term payroll payable
Estimated liabilities 8,296,619.85 1,137,019.85
Deferred income 7,077,909.37 0.00
Deferred income tax liabilities
Other non-current liabilities 0.00 8,883,045.38
28
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
Total non-current liabilities 15,374,529.22 10,020,065.23
Total liabilities 1,219,018,505.26 1,336,712,984.96
Owners' equity:
Share capital 1,235,656,249.00 1,235,656,249.00
Other equity instruments
Preferred stock
Perpetual capital securities
Capital reserve 231,415,947.36 240,542,997.30
Less: Treasury shares
Other comprehensive income 144.40 51.46
Special reserve
Surplus reserve 138,710,473.33 138,710,473.33
Undistributed profits 363,333,313.49 261,535,996.61
Total owners' equity 1,969,116,127.58 1,876,445,767.70
Total liabilities and owners' equity 3,188,134,632.84 3,213,158,752.66
3. Consolidated Profit Statement in the Reporting Period
Unit: Yuan
Item Amount incurred in the current period Amount incurred in the previous period
I. Total operating revenue 561,704,545.25 275,268,163.32
Including: Operating revenue 561,704,545.25 264,775,121.17
Interest income 0.00 10,237,004.43
Earned premiums 0.00 0.00
Service charges and
0.00 256,037.72
commissions income
II. Total operating cost 461,817,703.47 245,313,012.12
Including: Operating cost 385,280,407.90 191,696,254.24
Interest expenses -457,500.00
Commissions
Surrender value
Net compensation pay-outs
Net insurance deposit
accrued
Insurance dividends
Reinsurance expenses
Operating tax and surcharge 18,760,506.17 3,464,139.55
29
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
Sale expenses 9,863,748.78 11,030,202.70
Management expenses 30,304,372.95 28,650,475.44
R&D expenses 0.00 0.00
Financial expenses 17,608,667.67 6,198,248.25
Including: Interest cost 56,338,849.11 0.00
Interest income -4,428,143.40 0.00
Loss from asset impairment 0.00 4,731,191.94
Add: Other income
Income from investment (enter
693,535.91 3,736,010.87
"-" for loss)
Including: Income from investment in
-4,808,467.81 404,799.96
joint ventures or associates
Income from changes in the fair
value (enter "-" for loss)
Exchange gain (enter "-" for loss)
Gain on asset disposal (enter "-" for loss)
III. Operating profit (enter "-" for loss) 100,580,377.69 33,691,162.07
Add: Non-operating revenue 2,428,758.29 4,286,065.82
Less: Non-operating expenses 1,797,197.37 1,033,612.57
IV. Total profit (enter "-" for total loss) 101,211,938.61 36,943,615.32
Less: Income tax 32,529,740.36 13,377,441.66
V. Net profit (enter "-" for net loss) 68,682,198.25 23,566,173.66
1. Income from continuing operations
205,277,474.20 0.00
(enter "-" for net loss)
2. Income from discontinued operations
-6,057,464.41 0.00
(enter "-" for net loss)
Net profit attributable to owners of
40,399,673.95 19,184,279.34
the parent company
Minority interest 28,282,524.30 4,381,894.32
VI. Net of tax of other comprehensive
-1,702.10 2,688.08
income
Total net of tax of other
comprehensive income attributable to -20,106.43 1,775.47
owners of the parent company
1. Other comprehensive income not
to be reclassified into gains and losses
(1) Changes in net liabilities
30
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
or net assets of the re-measured defined
benefit plans
(2) Other comprehensive
income not to be reclassified into gains
and losses under the equity method
2. Other comprehensive income to
-20,106.43 1,775.47
be reclassified into gains and losses
(1) Shares of the investee of
other comprehensive income to be
25.45 -42.65
reclassified into gains and losses under
the equity method
(2) Gains and losses from
changes in the fair value of the -20,131.88 1,818.12
available-for-sale financial assets
(3) Held-to-maturity
investments categorized as gains and
0.00 0.00
losses from the available-for-sale
financial assets
(4) Effective gains or loss
0.00 0.00
from cash flows
(5) Foreign currency
0.00 0.00
translation differences
(6) Others 0.00 0.00
Net of tax of other comprehensive
income attributable to minority 18,404.33 912.61
shareholders
VII. Total comprehensive income 68,680,496.15 23,568,861.74
Total comprehensive income
attributable to shareholders of the parent 40,379,567.52 19,186,054.81
company
Total comprehensive income
28,300,928.63 4,382,806.93
attributable to minority shareholders
VIII. Earnings per share
1. Basic earnings per share 0.0327 0.0155
2. Diluted earnings per share 0.0327 0.0155
In terms of business combination under common control, the net profit of the combined party recognized before combination is RMB
0 in the reporting period, and that recognized in the previous period is RMB 0.
Legal representative: Chen Huijie Person in charge of accounting: Liu Zhijun Responsible person of the
accounting institution: Ying Huadong
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4. Profit Statement of the Parent Company in the Reporting Period
Unit: Yuan
Item Amount incurred in the current period Amount incurred in the previous period
I. Operating revenue 17,036,869.30 19,323,775.88
Less: Operating cost 12,635,598.64 17,694,583.27
Tax and surcharge 1,077,632.77 1,198,616.06
Sale expenses 216,482.56 0.00
Management expenses 5,658,227.51 5,445,362.30
R&D expenses 0.00 0.00
Financial expenses 6,502,132.55 5,219,640.28
Including: Interest cost 23,002,334.12 0.00
Interest income -8,312,097.89 0.00
Loss from asset impairment 0.00 0.00
Add: Other income 0.00 0.00
Income from investment (enter
95,833,070.48 34,039,874.19
"-" for loss)
Including: Income from investment in
-4,808,467.81 -1,059,073.63
joint ventures or associates
Income from changes in the fair
value (enter "-" for loss)
Gain on asset disposal (enter "-" for loss)
II. Operating profit (enter "-" for loss) 86,779,865.75 23,805,448.16
Add: Non-operating revenue 1,570,422.99 3,975,499.99
Less: Non-operating expenses 1,700,000.00 0.00
III. Total profit (enter "-" for total loss) 86,650,288.74 27,780,948.15
Less: Income tax -1,546,771.59 920,525.97
IV. Net profit (enter "-" for net loss) 88,197,060.33 26,860,422.18
1. Income from continuing operations
88,197,060.33 26,860,422.18
(enter "-" for net loss)
2. Income from discontinued operations
(enter "-" for net loss)
V. Net of tax of other comprehensive
118.39 -42.65
income
1. Other comprehensive income not
to be reclassified into gains and losses
32
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
(1) Changes in net liabilities
or net assets of the re-measured defined
benefit plans
(2) Other comprehensive
income not to be reclassified into gains
and losses under the equity method
2. Other comprehensive income to
118.39 -42.65
be reclassified into gains and losses
(1) Shares of the investee of
other comprehensive income to be
118.39 -42.65
reclassified into gains and losses under
the equity method
(2) Gains and losses from
changes in the fair value of the
available-for-sale financial assets
(3) Held-to-maturity
investments categorized as gains and
losses from the available-for-sale
financial assets
(4) Effective gains or loss
from cash flows
(5) Foreign currency
translation differences
(6) Others 0.00
VI. Total comprehensive income 88,197,178.72 26,860,379.53
VII. Earnings per share
1. Basic earnings per share 0 0
2. Diluted earnings per share 0 0
5. Consolidated Profit Statement from the Beginning of the Year to the End of the Reporting Period
Unit: Yuan
Item Amount incurred in the current period Amount incurred in the previous period
I. Total operating revenue 1,451,123,498.84 900,354,015.56
Including: Operating revenue 1,444,642,633.92 857,121,747.39
Interest income 6,480,864.92 42,344,251.52
Earned premiums
Service charges and
888,016.65
commissions income
II. Total operating cost 1,208,273,949.32 774,000,723.44
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Including: Operating cost 994,429,779.15 618,357,775.28
Interest expenses
Commissions
Surrender value
Net compensation pay-outs
Net insurance deposit
accrued
Insurance dividends
Reinsurance expenses
Operating tax and surcharge 42,196,977.10 14,043,362.00
Sale expenses 23,051,951.82 29,960,498.74
Management expenses 92,415,176.65 91,253,807.59
R&D expenses 0.00 0.00
Financial expenses 52,818,041.75 16,196,131.68
Including: Interest cost 56,338,849.11 19,592,581.90
Interest income -4,428,143.40 -4,138,109.78
Loss from asset impairment 3,362,022.85 4,189,148.15
Add: Other income
Income from investment (enter
59,390,854.81 4,144,939.36
"-" for loss)
Including: Income from investment in
-16,716,197.00 -6,581,127.80
joint ventures or associates
Income from changes in the fair
value (enter "-" for loss)
Exchange gain (enter "-" for loss)
Gain on asset disposal (enter "-" for loss)
III. Operating profit (enter "-" for loss) 302,240,404.33 130,498,231.48
Add: Non-operating revenue 4,942,048.24 11,513,024.15
Less: Non-operating expenses 14,951,136.75 1,583,510.27
IV. Total profit (enter "-" for total loss) 292,231,315.82 140,427,745.36
Less: Income tax 93,011,306.00 52,159,868.66
V. Net profit (enter "-" for net loss) 199,220,009.82 88,267,876.70
1. Income from continuing operations
205,277,474.23 88,267,876.70
(enter "-" for net loss)
2. Income from discontinued operations
-6,057,464.41
(enter "-" for net loss)
34
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Net profit attributable to owners of
138,066,661.89 69,193,064.76
the parent company
Minority interest 61,153,347.93 19,074,811.94
VI. Net of tax of other comprehensive
-56,797.37 -158,032.32
income
Total net of tax of other
comprehensive income attributable to -37,828.28 -105,252.95
owners of the parent company
1. Other comprehensive income not
to be reclassified into gains and losses
(1) Changes in net liabilities
or net assets of the re-measured defined
benefit plans
(2) Other comprehensive
income not to be reclassified into gains
and losses under the equity method
2. Other comprehensive income to
-37,828.28 -105,252.95
be reclassified into gains and losses
(1) Shares of the investee of
other comprehensive income to be
reclassified into gains and losses under
the equity method
(2) Gains and losses from
changes in the fair value of the -37,828.28 -105,252.95
available-for-sale financial assets
(3) Held-to-maturity
investments categorized as gains and
losses from the available-for-sale
financial assets
(4) Effective gains or loss
from cash flows
(5) Foreign currency
translation differences
(6) Others
Net of tax of other comprehensive
income attributable to minority -18,969.09 -52,779.37
shareholders
VII. Total comprehensive income 199,163,212.45 88,109,844.38
Total comprehensive income 138,028,833.61 69,087,811.81
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attributable to shareholders of the parent
company
Total comprehensive income
61,134,378.84 19,022,032.57
attributable to minority shareholders
VIII. Earnings per share
1. Basic earnings per share 0.1117 0.0560
2. Diluted earnings per share 0.1117 0.0560
In terms of business combination under common control, the net profit of the combined party recognized before combination is RMB
0 in the reporting period, and that recognized in the previous period is RMB 0.
6. Profit Statement of the Parent Company from the Beginning of the Year to the End of the Reporting
Period
Unit: Yuan
Item Amount incurred in the current period Amount incurred in the previous period
I. Operating revenue 54,002,637.18 67,867,136.83
Less: Operating cost 33,720,284.08 53,370,069.61
Tax and surcharge 3,512,934.28 3,762,158.11
Sale expenses 216,482.56
Management expenses 16,232,297.04 14,467,955.34
R&D expenses
Financial expenses 14,837,050.62 13,397,232.97
Including: Interest cost 23,002,334.12 14,197,532.76
Interest income -8,312,097.89 -1,006,982.75
Loss from asset impairment
Add: Other income
Income from investment (enter
204,345,458.34 88,959,441.49
"-" for loss)
Including: Income from investment in
-13,741,197.00 -6,482,084.00
joint ventures or associates
Income from changes in the fair
value (enter "-" for loss)
Gain on asset disposal (enter "-" for loss)
II. Operating profit (enter "-" for loss) 189,829,046.94 71,829,162.29
Add: Non-operating revenue 2,772,317.01 7,059,365.47
Less: Non-operating expenses 8,874,462.04 91,300.00
III. Total profit (enter "-" for total loss) 183,726,901.91 78,797,227.76
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Less: Income tax 13,902,604.49 3,564,723.70
IV. Net profit (enter "-" for net loss) 169,824,297.42 75,232,504.06
1. Income from continuing operations
169,824,297.42 75,232,504.06
(enter "-" for net loss)
2. Income from discontinued operations
(enter "-" for net loss)
V. Net of tax of other comprehensive
92.94 -104.81
income
1. Other comprehensive income not
to be reclassified into gains and losses
(1) Changes in net liabilities
or net assets of the re-measured defined
benefit plans
(2) Other comprehensive
income not to be reclassified into gains
and losses under the equity method
2. Other comprehensive income to
92.94 -104.81
be reclassified into gains and losses
(1) Shares of the investee of
other comprehensive income to be
92.94 -104.81
reclassified into gains and losses under
the equity method
(2) Gains and losses from
changes in the fair value of the
available-for-sale financial assets
(3) Held-to-maturity
investments categorized as gains and
losses from the available-for-sale
financial assets
(4) Effective gains or loss
from cash flows
(5) Foreign currency
translation differences
(6) Others
VI. Total comprehensive income 169,824,390.36 75,232,399.25
VII. Earnings per share
1. Basic earnings per share 0 0
2. Diluted earnings per share 0 0
37
Full Text of Q3 2018 Report of Shenzhen SEG Co., Ltd.
7. Consolidated Cash Flow Statement from the Beginning of the Year to the End of the Reporting Period
Unit: Yuan
Item Amount incurred in the current period Amount incurred in the previous period
I. Cash flow from operating activities:
Cash received from sales of goods
1,190,798,262.16 1,314,055,894.12
and rendering of services
Net increase in deposits from
customers and interbank
Loans from central bank
Net increase in loans from other
banks
Cash received from premium of the
original insurance contract
Net cash received from reinsurance
business
Net increase in the deposit of the
insured and investments
Net increase in financial assets
measured by fair value with changes
included in current gains and losses
Cash received from interest and
6,311,198.08 47,251,322.15
commissions
Net increase in loans from other
banks
Net increase in redemption capital
Tax refunds 246,846.66 749,351.94
Other cash received from operating
253,127,937.32 393,011,976.89
activities
Subtotal of cash inflow from operating
1,450,484,244.22 1,755,068,545.10
activities
Cash paid for goods and service 565,344,689.47 685,380,979.09
Net increase in loans to customers
-15,664,988.00 -29,325,104.19
and advances
Net increase in deposits with central
bank and interbank
Cash paid for indemnity payment of
the original insurance contract
Cash paid for interest and 76,146.53
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commissions
Cash paid as insurance dividends
Cash paid to and on behalf of
195,861,678.08 202,653,001.58
employees
Taxes paid 264,954,200.49 249,526,081.87
(1) Other cash received from
351,574,995.06 366,594,717.62
operating activities
Subtotal of cash outflow in operating
1,362,070,575.10 1,474,905,822.50
activities
Net cash flow from operating activities 88,413,669.12 280,162,722.60
III. Cash flow from financing activities:
Cash received from withdrawal of
1,395,212,511.69 1,331,000,000.00
investment
Cash received from investment
64,918,960.93 12,926,977.20
income
Net cash received from disposal of
fixed assets, intangible assets and other 1,220.00 2,320.00
long-term assets
Net cash received from disposal of
126,699,000.00
subsidiaries and other business units
Other cash received from financing
activities
Subtotal of cash inflow from financing
1,586,831,692.62 1,343,929,297.20
activities
Cash paid for purchase and
construction of fixed assets, intangible 66,254,262.96 122,826,868.88
assets and other long-term assets
Cash paid for investment 1,633,847,350.55 1,477,819,502.86
Net increase in mortgage loans
Net cash paid for acquisition of
subsidiaries and other business units
Other cash paid for investment
activities
Subtotal of cash outflow in financing
1,700,101,613.51 1,600,646,371.74
activities
Net cash flow arising from financing
-113,269,920.89 -256,717,074.54
activities
III. Cash flow from financing activities:
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Cash received by absorbing
980,000.00 151,637,998.48
investment
Including: Cash received by
subsidiaries from investment of minority 980,000.00 151,637,998.48
shareholders
Borrowings received 979,000,000.00 650,000,000.00
Cash received from bond issuance
Other cash received from financing
196,900,800.36 0.00
activities
Subtotal of cash inflow from financing
1,176,880,800.36 801,637,998.48
activities
Cash paid for debt repayment 924,664,813.71 681,901,725.48
Cash paid for dividend and profit
95,444,956.60 120,771,753.52
distribution or interest payment
Including: Dividends and profit
paid by subsidiaries to minority 26,262,417.89 47,286,452.85
shareholders
Other cash paid for financing
169,669,157.90 100,468,327.16
activities
Subtotal of cash outflow in financing
1,189,778,928.21 903,141,806.16
activities
Net cash flow arising from financing
-12,898,127.85 -101,503,807.68
activities
IV. Influence of exchange rate
452.95 0.00
fluctuation on cash and cash equivalents
V. Net increase of cash and cash
-37,753,926.67 -78,058,159.62
equivalents
Add: Opening balance of cash and
951,482,605.92 1,131,523,641.19
cash equivalents
VI. Closing balance of cash and cash
913,728,679.25 1,053,465,481.57
equivalents
8. Cash Flow Statement of the Parent Company from the Beginning of the Year to the End of the Reporting
Period
Unit: Yuan
Item Amount incurred in the current period Amount incurred in the previous period
I. Cash flow from operating activities:
Cash received from sales of goods
51,123,098.98 68,525,179.03
and rendering of services
40
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Tax refunds
Other cash received from operating
311,283,263.32 25,708,003.30
activities
Subtotal of cash inflow from operating
362,406,362.30 94,233,182.33
activities
Cash paid for goods and service 27,256,444.94 56,734,763.54
Cash paid to and on behalf of
19,716,496.24 27,422,885.12
employees
Taxes paid 26,671,624.06 28,919,662.75
Other cash received from operating
185,871,943.22 101,134,157.57
activities
Subtotal of cash outflow in operating
259,516,508.46 214,211,468.98
activities
Net cash flow from operating activities 102,889,853.84 -119,978,286.65
II. Cash flow from financing activities:
Cash received from withdrawal of
525,597,700.00 719,000,000.00
investment
Cash received from investment
218,497,996.91 83,162,204.40
income
Net cash received from disposal of
fixed assets, intangible assets and other
long-term assets
Net cash received from disposal of
77,654,200.00
subsidiaries and other business units
Other cash received from financing
activities
Subtotal of cash inflow from financing
821,749,896.91 802,162,204.40
activities
Cash paid for purchase and
construction of fixed assets, intangible 114,000.00 0.00
assets and other long-term assets
Cash paid for investment 693,000,000.00 818,620,000.00
Net cash paid for acquisition of
subsidiaries and other business units
Other cash paid for investment
activities
Subtotal of cash outflow in financing
693,114,000.00 818,620,000.00
activities
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Net cash flow arising from investment
128,635,896.91 -16,457,795.60
activities
III. Cash flow from financing activities:
Cash received by absorbing
investment
Borrowings received 729,000,000.00 500,000,000.00
Cash received from bond issuance
Other cash received from financing
46,394,666.68 316,666.67
activities
Subtotal of cash inflow from financing
775,394,666.68 500,316,666.67
activities
Cash paid for debt repayment 530,000,000.00 310,000,000.00
Cash paid for dividend and profit
88,928,233.30 51,609,410.91
distribution or interest payment
Other cash paid for financing
255,061,667.00 0.00
activities
Subtotal of cash outflow in financing
873,989,900.30 361,609,410.91
activities
Net cash flow arising from financing
-98,595,233.62 138,707,255.76
activities
IV. Influence of exchange rate
fluctuation on cash and cash equivalents
V. Net increase of cash and cash
132,930,517.13 2,271,173.51
equivalents
Add: Opening balance of cash and
104,463,125.70 90,504,836.76
cash equivalents
VI. Closing balance of cash and cash
237,393,642.83 92,776,010.27
equivalents
II. Auditor's Report
Is the Q3 report audited?
□ Yes √ No
The Q3 report of the Company has not been audited.
42
