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深赛格B:2019年第一季度报告全文(英文版)2019-04-30  

						                    Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.




Shenzhen SEG Co., Ltd.

    Q1 2019 Report

  Notice No.:2019-051




       April 2019




           1
                                                                       Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.




                                    Chapter 1 Important Notice

     The Board of Directors, the Board of Supervisors, the directors, the
supervisors, and the 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 directors other than the following directors have attended this board
meeting to review the annual report.
                                       Position of director not
     Name of director not present                                     Reason for absence             Name of proxy
                                               present
Gao Jianbai                         Director                      For work                    Chen Huijie
Song Pingping                       Independent director          For work                    Fan Zhiqing
Zhang Yuwang                        Director                      For work                    Chen Huijie
Zhang Liang                         Director                      For work                    Xu Laping

    Chairman of the Board Chen Huijie, Chief Financial Officer Yan Dongxia,
and the responsible person of the accounting institution (accountant in charge)
Yan Dongxia hereby declare that the Financial statements enclosed in this
quarterly report are true, accurate and complete.




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                                                                                Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.




                      Chapter 2 Basic Information about the Company

I. Major accounting data and financial indexes

Are retrospective adjustments made to previous financial statements?
□ Yes  No

                                                                                                                   Year-on-year
                                                  Amount of the reporting Amount of the same period
                                                                                                              increase/decrease in the
                                                          period                 of the previous year
                                                                                                                  reporting period

Operating revenue (yuan)                                   376,087,480.56                  391,140,155.46                            -3.85%

Net profit attributable to shareholders of the
                                                            60,097,292.93                    62,622,931.80                           -4.03%
listed company (yuan)

Net profit attributable to shareholders of the
listed company after deducting non-recurring                15,160,088.23                    27,128,268.89                       -44.12%
gains and losses (yuan)

Net cash flow arising from operating activities
                                                           -10,122,641.51                    -1,165,334.33
(yuan)

Basic EPS (yuan/share)                                              0.0486                           0.0507                          -4.14%

Diluted EPS (yuan/share)                                            0.0486                           0.0507                          -4.14%

Weighted average ROE                                                   2.41%                         2.40%                           0.01%

                                                                                                                   Year-on-year
                                                  Amount at the end of the     Amount at the end of the
                                                                                                              increase/decrease in the
                                                      reporting period               previous year
                                                                                                                  reporting period

Total assets (yuan)                                      6,628,767,304.85               7,128,009,738.20                             -7.00%

Net assets attributable to shareholders of the
                                                         1,920,074,451.41               1,867,881,216.44                             2.79%
listed company (yuan)

Items and amount of non-recurring gains and losses
√ Applicable □ Not Applicable
                                                                                                                              Unit: yuan

                                                                       Amount from the beginning
                                Item                                     of year to the end of the                Remarks
                                                                                  period

Profit or loss on disposal of non-current assets (including the                                       Income from reduction of
                                                                                      55,036,051.26
write-off of assets depreciation reserves)                                                            holding-shares of Huakong SEG

Government subsidies recognized in current profit or loss (except                                     Support project fund for the
those closely related to corporate business and enjoyed according                          474,999.99 construction of Nantong SEG
to national standards or certain quota)                                                               electronics market



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                                                                                Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.


Profit and loss from commissioned investment or asset
                                                                                       4,806,398.41
management

Other items conforming to the definition of non-recurring profit
                                                                                           349,538.55
and loss

Less: Amount of affected income tax                                                   15,166,747.05

   Amount of influence of minority shareholders' equity (after
                                                                                           563,036.46
tax)

Total                                                                                 44,937,204.70                       --

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 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 item of non-recurring profit and loss defined and listed according to the Explanatory Announcement No. 1
on Information Disclosure by Companies Offering Securities to the Public — Non-recurring Profit and Loss is defined as an item 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
                                                          70,146 shareholders restored with the                                            0
the end of the reporting period
                                                                  voting rights (if any)

                                                 Shares held by top 10 shareholders

                                                                                    Quantity of     Information on pledged or frozen
                              Nature of         Proportion of
 Name of shareholder                                              Shares held        restricted                        shares
                             shareholder        shareholding
                                                                                    shares held         Share status            Quantity

Shenzhen SEG Group State-owned legal
                                              56.70%            700,628,759     450,857,239
Co., Ltd.                person

Shenzhen Rongchao
                         Domestic
Investment
                         non-state-owned      0.62%             7,660,000       0
Development Co.,
                         legal person
Ltd.

                         Domestic natural
Liu Guocheng                                  0.57%             7,052,702       0
                         person

                         Domestic natural
Liu Guohong                                   0.26%             3,234,898       0
                         person


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                                                                                Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.


                        Overseas natural
Gong Qianhua                                   0.24%             2,940,000       0
                        person

Shanghai Juzhang        Domestic
Investment              non-state-owned        0.21%             2,652,541       0
Management Co., Ltd. legal person

China Securities        Domestic
Finance Corporation     non-state-owned        0.18%             2,271,900       0
Limited                 legal person

                        Domestic natural
Xu Yueying                                     0.14%             1,760,000       0
                        person

China Hi-tech Group     State-owned legal
                                               0.12%             1,500,000       0
Corporation             person

Chongqing
International Trust
Co., Ltd. - Yuxin
                        Others                 0.10%             1,220,000       0
Chuangxin Youshi
No. 12 Assembled
Funds Trust

                                       Information on top 10 shareholders of non-restricted shares

                                                    Quantity of unrestricted                         Type of share
             Name of shareholder
                                                      ordinary shares held                 Type of share                 Quantity

Shenzhen SEG Group Co., Ltd.                             249,771,520             RMB ordinary shares                   249,771,520

Shenzhen Rongchao Investment
                                                           7,660,000             RMB ordinary shares                    7,660,000
Development Co., Ltd.

Liu Guocheng                                               7,052,702             Domestically listed foreign shares     7,052,702

Liu Guohong                                                3,234,898             Domestically listed foreign shares     3,234,898

Gong Qianhua                                               2,940,000             Domestically listed foreign shares     2,940,000

Shanghai Juzhang Investment Management
                                                           2,652,541             RMB ordinary shares                    2,652,541
Co., Ltd.

China Securities Finance Corporation
                                                           2,271,900             RMB ordinary shares                    2,271,900
Limited

Xu Yueying                                                 1,760,000             Domestically listed foreign shares     1,760,000

China Hi-tech Group Corporation                            1,500,000             RMB ordinary shares                    1,500,000

Chongqing International Trust Co., Ltd. -
Yuxin Chuangxin Youshi No. 12                              1,220,000             RMB ordinary shares                    1,220,000
Assembled Funds Trust

                                               Shenzhen SEG Group Co., Ltd. has no association relationship with other
Explanations on the association relationship
                                               shareholders and is not a person acting in concert with other shareholders as specified
or concerted action among the
                                               in the Management Methods for Disclosure of Information on Changes of

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                                                                              Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.


above-mentioned shareholders                  Shareholding Status of Shareholders of Listed Companies. It is unclear whether other
                                              shareholders are persons acting in concert.

Information on top 10 ordinary shareholders
participating in securities margin trading (if None.
any)

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 Q1 2019 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
                                                                                                                   Increase/decrease year
             Item                         Closing balance            Opening balance            Difference
                                                                                                                        on year (%)
Monetary funds                                  1,230,137,703.98      1,757,492,816.67           -527,355,112.69                 -30.01%
Notes receivable and accounts
                                                   74,163,820.86          54,426,228.11            19,737,592.75                  36.26%
receivable
Prepayment                                          1,542,058.75           2,701,718.53            -1,159,659.78                 -42.92%
Payroll payable                                    30,080,168.48          44,065,725.59           -13,985,557.11                 -31.74%


Taxes payable                                     171,476,588.03         121,045,597.93            50,430,990.10                  41.66%



Other payables                                    588,676,374.70      1,021,673,905.77           -432,997,531.07                 -42.38%


1. Monetary funds decreased by RMB 527,355,112.69 or 30.01% over the beginning of the period, mainly due to repayment of the
restructuring consideration to SEG Group and bank loans.

2. Notes receivable and accounts receivable increased by RMB 19,737,592.75 or 36.26% over the beginning of the period, mainly
because SEG Property Management accrued the management expenses of RMB 20,527,800.

3. Prepayment decreased by RMB 1,159,659.78 or 42.92% over the beginning of the period, mainly due to business contraction of
SEG Industrial in the reporting period.

4. Payroll payable decreased by RMB 13,985,557.11 or 31.74% over the beginning of the period, mainly because the company
granted part of salaries and bonuses accrued in the previous year.

5. Taxes payable increased by RMB 50,430,990.10 or 41.66% over the beginning of the period, mainly because SEG New Urban
incurred the land VAT for property sales of RMB 21 million and the Company incurred the enterprise income tax of RMB 9,246,600
for sales of shares of Huakong SEG.

6. Other payables decreased by RMB 432,997,531.07 or 42.38% over the beginning of the period, mainly due to repayment f the
restructuring consideration to SEG Group.


(II) Items of the Consolidated Profit Statement
                                                                                                                         Unit: RMB/Yuan
                                                                     Amount of the same
                                          Amount for the current                                                      Increase/decrease
                  Item                                             period of the previous          Difference
                                                 period                                                               year on year (%)
                                                                             year
Interest income                                             0.00              5,020,857.08           -5,020,857.08              -100.00%
Service charges and commissions                             0.00                223,839.96             -223,839.96              -100.00%


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                                                                                  Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.


income

Tax and surcharges                                31,785,231.34             10,239,902.06            21,545,329.28                 210.41%
Sale expenses                                       5,180,963.20             7,610,500.75            -2,429,537.55                 -31.92%
Financial expenses                                23,195,019.91             15,524,536.56             7,670,483.35                  49.41%
Loss from asset impairment                                  0.00             3,428,150.12            -3,428,150.12                -100.00%
Non-operating revenue                               1,059,075.24             1,567,854.35                -508,779.11               -32.45%
Non-operating expenses                                234,536.70             4,264,049.51            -4,029,512.81                 -94.50%

1. Interest income decreased by RMB 5,020,857.08 or 100% year on year, mainly because the equity of SEG Credit was sold in the
previous year and such income was not generated in the reporting period.

2. Service charges and commissions income decreased by RMB 223,839.96 or 100% year on year, mainly because the equity of SEG
Credit was sold in the previous year and such income was not generated in the reporting period.

3. Tax and surcharges increased by RMB 21,545,329.28 or 210.41% year on year, mainly because SEG New Urban incurred the land
VAT for property sales of RMB 21 million.

4. Sale expenses decreased by RMB 2,429,537.55 or 31.92% year on year, mainly because the sales agent expense paid by SEG New
Urban decreased by RMB 1.55 million year on year and the advertising expenses paid by Nantong SEG and Huizhou Stars decreased
by RMB 670 thousand year on year.

5. Financial expenses increased by RMB 7,670,483.35 or 49.41% year on year, mainly because the interest of RMB 9,088,400 was
incurred due to issue of corporate bonds of RMB 800 million.

6. Loss from asset impairment decreased by RMB 3,428,150.12 year on year, mainly because SEG Credit accrued the provision for
loan loss in the same the period of the previous year and there is no such impairment in the reporting period as SEG Credit has been
sold.
7. Non-operating revenue decreased by RMB 508,779.11 or 32.45% year on year, mainly because SEG Property Development
received the subsidy of RMB 666,200 for facade renovation of SEG Plaza in the same the period of the previous year and no such
income was generated in the reporting period.

8. Non-operating expenses decreased by RMB 4,029,512.81 or 94.50% year on year, mainly because SEG Real Estate paid for
termination of a contract (2017 Y. 0307 M. C. No. 6835) in the same the period of the previous year.


(III) Items of the Consolidated Cash Flow Statement
                                                                                                                           Unit: RMB/Yuan
                                                                                Amount for the same
                                                          Amount for the                                                   Increase/decrease
                         Item                                                   period of the previous     Difference
                                                           current period                                                  year on year (%)
                                                                                   year (adjusted)
Cash received from interest, handling charges and
                                                                   371,052.26           4,661,395.77       -4,290,343.51           -92.04%
commissions

Cash paid for goods and service                              104,282,449.76           244,997,988.68 -140,715,538.92               -57.44%

Net increase in loans to customers and advances                          0.00         -16,784,988.00       16,784,988.00

Taxes paid                                                    37,114,103.27            70,845,921.44 -33,731,818.17                -47.61%

Net cash received from disposal of subsidiaries and
                                                                         0.00           -3,394,971.91       3,394,971.91
other business units



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                                                                               Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.


Cash paid for purchase and construction of fixed
                                                               4,150,185.67         32,963,785.60 -28,813,599.93                -87.41%
assets, intangible assets and other long-term assets

Cash paid for investment                                    793,128,340.34         350,880,000.00 442,248,340.34               126.04%

Cash received from absorbing investment                                 0.00            980,000.00        -980,000.00         -100.00%

Cash received from borrowings                               250,000,000.00         152,000,000.00      98,000,000.00            64.47%

Cash paid for debt repayment                                375,632,579.00         281,320,347.76      94,312,231.24            33.52%

Cash paid for dividend and profit distribution or
                                                               8,805,931.09         12,986,315.44       -4,180,384.35           -32.19%
interest payment

1. Cash received from interest, handling charges and commissions decreased by RMB 4,290,343.51 or 92.04% year on year, mainly
because the equity of SEG Credit has been transferred in the reporting period and no loan was incurred.

2. Cash paid for goods and service decreased by RMB 140,715,538.92 or 57.44% year on year, mainly because the projects of
Nantong SEG and SEG New Urban have been completed and the expenditure decreased by RMB 141,325,500 year on year.

3. Net increase in loans to customers and advances decreased by RMB 16,784,988.00 year on year, mainly because no loan was
incurred in the reporting period.

4. Taxes paid decreased by RMB 33,731,818.17 or 47.61% year on year, mainly because taxes paid by SEG Real Estate decreased by
RMB 29,478,700 year on year.
5. Net cash received from disposal of subsidiaries and other business units decreased by RMB 3,394,971.91 year on year, mainly
because no subsidiaries and other business units were disposed of in the reporting period.

6. Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets decreased by RMB
28,813,599.93 or 87.41%, mainly because this item included the prepayment for equipment by Shenzhen-Shantou Longyan last year.

7. Cash paid for investment increased by RMB 442,248,340.34 or 126.04% year on year, mainly because repayment of the
restructuring consideration of RMB 375,626,200 to SEG Group.

8. Cash received from absorbing investment decreased by RMB 980,000.00 or 100% year on year, mainly because the company
acquired the investment from minority shareholders of SEG Yicheng in the same period of the previous year.
9. Cash received from borrowings increased by RMB 98,000,000.00 or 64.47% year on year, mainly because borrowings increased in
the reporting period.
10. Cash paid for debt repayment increased by RMB 94,312,231.24 or 33.52% year on year, mainly because loan repayment
increased in the reporting period.
11. Cash paid for dividend and profit distribution or interest payment decreased by RMB 41,803,843,500 or 32.19% year on year,
mainly because SEG Credit paid the interest of RMB 2,996,600 in the same period of the previous year and this expenditure was not
incurred in the reporting period.


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

√ Applicable □ Not applicable

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

 1. Progress of breach of contract by the holding                                            http://www.cninfo.com.cn
                                                                  April 30, 2019
 sub-subsidiary SEG New Urban                                                                Annual Report of 2018 of Shenzhen SEG


                                                                  9
                                                                         Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.


Due to such force majeure as severe weather, the                                    Co., Ltd.
construction of the ECO project developed by the holding
                                                                                    http://www.cninfo.com.cn
sub-subsidiary SEG New Urban was affected, resulting in
                                                                                    Announcement on the Progress of
breach of contract with 585 owners (of which 29 owners        January 3, 2019
                                                                                    Breach of Contract by the Holding
filed lawsuits). As of the end of the reporting period, SEG
                                                                                    Sub-subsidiary
New Urban has reached a compromise with 417 owners.
                                                                                    http://www.cninfo.com.cn
                                                                                    Announcement on the Progress of
                                                              January 10, 2019
                                                                                    Breach of Contract by the Holding
                                                                                    Sub-subsidiary

                                                                                    http://www.cninfo.com.cn
                                                                                    Announcement on the Progress of
                                                              January 17, 2019
                                                                                    Breach of Contract by the Holding
                                                                                    Sub-subsidiary

                                                                                    http://www.cninfo.com.cn
                                                                                    Announcement on the Progress of
                                                              January 24, 2019
                                                                                    Breach of Contract by the Holding
                                                                                    Sub-subsidiary

                                                                                    http://www.cninfo.com.cn
                                                                                    Announcement on the Progress of
                                                              January 31, 2019
                                                                                    Breach of Contract by the Holding
                                                                                    Sub-subsidiary

                                                                                    http://www.cninfo.com.cn
                                                                                    Announcement on the Progress of
                                                              February 14, 2019
                                                                                    Breach of Contract by the Holding
                                                                                    Sub-subsidiary

                                                                                    http://www.cninfo.com.cn
                                                                                    Announcement on the Progress of
                                                              February 28, 2019
                                                                                    Breach of Contract by the Holding
                                                                                    Sub-subsidiary

                                                                                    http://www.cninfo.com.cn
                                                                                    Announcement on the Progress of
                                                              March 7, 2019
                                                                                    Breach of Contract by the Holding
                                                                                    Sub-subsidiary

                                                                                    http://www.cninfo.com.cn
                                                                                    Announcement on the Progress of
                                                              March 21, 2019
                                                                                    Breach of Contract by the Holding
                                                                                    Sub-subsidiary

                                                                                    http://www.cninfo.com.cn
                                                              March 28, 2019        Announcement on the Progress of
                                                                                    Breach of Contract by the Holding


                                                              10
                                                                            Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.


                                                                                       Sub-subsidiary

2. Dispute over the lease contract arose between Nanning                               http://www.cninfo.com.cn
Haiqi Real Estate Development Co., Ltd. and Shenzhen SEG                               Announcement of Shenzhen SEG Co.,
                                                                 September 26, 2016
Co., Ltd. Case number: 2016 G. 0102 M. C. No. 3653                                     Ltd. on Receipt of Court Summons and
Second instance judgment: Nanning SEG shall pay the                                    the Civil Complaint
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.
The Company has applied for retrial. On July 11, 2018, the
                                                                                       http://www.cninfo.com.cn
Higher People's Court of Guangxi Zhuang Autonomous
                                                                 August 31, 2018       Semi-Annual Report 2018 of Shenzhen
Region decided to put the case on file. On March 22, 2019,
                                                                                       SEG Co., Ltd.
the company received the Civil Ruling Paper served by the
Higher People's Court of Guangxi Zhuang Autonomous
Region which rejected the re-trial application of the
company. Now the case is fulfilled completely.

3. SEG Industrial sued against Shenzhen Wonder Industry
Co., Ltd., Liu Guiyun and Liu Yu for a dispute over the
purchase and sales contract. Case number: (2017) Y. 0304 M.
C. No. 5092; involved amount: 8,394,100 yuan
The first-instance judgment has taken effect. The claims filed                         http://www.cninfo.com.cn
by SEG Industrial were basically supported, except that not                            Announcement of Shenzhen SEG Co.,
                                                                 September 20, 2018
all of the overdue fine was supported, and SEG Industrial                              Ltd. on the Progress of the Lawsuit
has applied for enforcement with the court.                                            Involving Holding Subsidiaries
Shenzhen Wonder Industry Co., Ltd. and Liu Yu refused to
accept the first instance judgment and applied for re-trial to
Shenzhen Intermediate People's Court. On March 4, 2019,
the court decided to put the case on file.

4. SEG Industrial sued against Shenzhen Yixin Zhongtian
Technology Co., Ltd., Zhe Shaojun, and Zhao Xiaoyan for a
dispute over the purchase and sales contract. Case number:
(2017) Y. 0304 M. C. No. 5088; involved amount:
14,805,700 yuan                                                                        http://www.cninfo.com.cn
The first-instance judgment has taken effect. The claims filed                         Announcement of Shenzhen SEG Co.,
                                                                 September 20, 2018
by SEG Industrial were basically supported, except that not                            Ltd. on the Progress of the Lawsuit
all of the overdue fine was supported.                                                 Involving Holding Subsidiaries
On January 30, 2019, Shenzhen Yixin Zhongtian
Technology Co., Ltd., Zhe Shaojun, and Zhao Xiaoyan
applied for re-trial to Guangdong Higher People's Court and
the court decided to put the case on file.

5. SEG Industrial sued against Shenzhen Comnet                                         http://www.cninfo.com.cn
Technology Co., Ltd., Xiao Qingshan, Zhou Ronghua,               September 20, 2018    Announcement of Shenzhen SEG Co.,
Anhua Meishan Small Loan Co., Ltd., and Shenzhen Baiyide                               Ltd. on the Progress of the Lawsuit


                                                                 11
                                                                             Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.


Technology Co., Ltd. for a dispute over the purchase and                                Involving Holding Subsidiaries
sales contract. Case number: (2017) Y. 0304 M. C. No. 7976;
involved amount: 5,155,400 yuan
According to the first-instance judgment, SEG Industrial was
the prevailing party. The other party arrested the
first-instance judgment and instituted an appeal. The second
instance is in progress.

6. SEG Industrial sued against Shenzhen Runneng Digital
Technology Co., Ltd., Xiao Qingshan, Zhou Ronghua,
Anhua Meishan Small Loan Co., Ltd., and Shenzhen Baiyide
Technology Co., Ltd. for a dispute over the purchase and                                http://www.cninfo.com.cn
sales contract. Case number: (2017) Y. 0304 M. C. No. 7977;                             Announcement of Shenzhen SEG Co.,
                                                                  September 20, 2018
involved amount: 15,345,000 yuan                                                        Ltd. on the Progress of the Lawsuit
According to the first-instance judgment, SEG Industrial was                            Involving Holding Subsidiaries
the prevailing party. The other party arrested the
first-instance judgment and instituted an appeal. The second
instance is in progress.

7. In the reporting period, 16 cases involving Nantong SEG
Operation are not settled yet, in which 2 cases are new.
Merchants owed the rents and management fees to Nantong
SEG Operation, resulting in disputes over lease contracts.                              http://www.cninfo.com.cn
Involved amount: 7,813,500 yuan                                   August 31, 2018       Semi-Annual Report 2018 of Shenzhen
Twelve cases were settled and Nantong SEG Operation was                                 SEG Co., Ltd.
the prevailing party. The remaining four cases are not settled,
among which two are on first trial and the other two are on
second trial.

In the reporting period, Nantong SEG is involved in 16
cases. In one case, Nantong SEG was the defendant. All
                                                                                        http://www.cninfo.com.cn
lawsuits arise from disputes over the house decoration
                                                                  August 31, 2018       Semi-Annual Report 2018 of Shenzhen
contract, involving RMB 34,506,300. 12 cases have been
                                                                                        SEG Co., Ltd.
settled and are being enforced. One case is under re-trial.
Three cases are under second trial.

                                                                                        http://www.cninfo.com.cn
                                                                                        Risk Warning on Suspension of Some
                                                                  February 1, 2019
                                                                                        Bank Accounts of the Holding
                                                                                        Sub-subsidiary
9. Follow-up on the business transaction between the holding
                                                                                        http://www.cninfo.com.cn
sub-subsidiary SEG New Urban and Shenzhen Zhaocheng
                                                                                        Announcement on the Receipt of the
Group
                                                                  March 2, 2019         Legal Instrument & the Progress of
                                                                                        Suspension of Some Bank Accounts of
                                                                                        the Holding Sub-subsidiary

                                                                  March 22, 2019        http://www.cninfo.com.cn


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                                                                        Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.


                                                                                   Announcement on Unfreezing Accounts
                                                                                   of the Holding Sub-subsidiary

                                                                                   http://www.cninfo.com.cn
                                                                                   Risk Warning on the Possibility of the
                                                             March 29, 2019
                                                                                   Holding Sub-subsidiary's Liability for
                                                                                   Guarantee

                                                                                   http://www.cninfo.com.cn


                                                             April 16, 2019        Announcement on the Receipt of the
                                                                                   Civil Ruling Paper and the Notice for
                                                                                   Assistance in Enforcement

                                                                                   http://www.cninfo.com.cn


                                                                                   Risk Warning on Matters Related to the
                                                             April 23, 2019
                                                                                   Receipt of the Notice of Contract
                                                                                   Termination by the Holding
                                                                                   Sub-subsidiary

10. Public offering of corporate bonds                                             http://www.cninfo.com.cn/
                                                             April 30, 2019
To meet the capital needs of the Company during main                               2018 Annual Report
business development and to further expand financing                               http://www.cninfo.com.cn
channels, based on financial and operational status of the
                                                                                   Announcement on Public Offering of
Company, the Company planned to publicly issue corporate     January 15, 2019
                                                                                   Corporate Bonds (1st Issue) to Qualified
bonds worth RMB 800 million on Shenzhen Stock Exchange
                                                                                   Investors in 2018
and provided counter-guarantee for mortgage.
                                                                                   http://www.cninfo.com.cn
On January 15, 2019, the corporate bonds (1st issue) of
                                                                                   Announcement        on      Contemplated
RMB 800 million issued by the Company were listed.           February 19, 2019
                                                                                   Changes     in   Details   of   Repayment
                                                                                   Objects of 18 SEG 01 and 18 SEG 02

                                                                                   http://www.cninfo.com.cn
                                                                                   Announcement        on      Contemplated
                                                             February 22, 2019
                                                                                   Changes     in   Details   of   Repayment
                                                                                   Objects of 18 SEG 01 and 18 SEG 02

11. Retirement of Vice General Manager of the Company
                                                                                   http://www.cninfo.com.cn
Hong Xi was removed from Vice General Manager of the
                                                             January 31, 2019      Announcement on the Retirement of Vice
Company due to retirement and no longer holds any post in
                                                                                   General Manager of the Company
the Company.

                                                                                   http://www.cninfo.com.cn
                                                                                   Announcement on the Resolution of the
                                                             January 15, 2019
12. Reduction of Holding-shares of Shenzhen Huakong SEG                            1st Extraordinary General Meeting in
Co., Ltd.                                                                          2019

                                                                                   http://www.cninfo.com.cn
                                                             April 24, 2019
                                                                                   Announcement on the Progress of


                                                             13
                                                                            Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.


                                                                                       Reduction of Holding-shares of
                                                                                       Shenzhen Huakong SEG Co., Ltd.

                                                                                       http://www.cninfo.com.cn
                                                                                       Suggestive Announcement on Suspension
 13. Suspension of the Construction Project of the PV                                  of the Construction Project of the PV
 Industry Base of Shenzhen-Shantou Special Cooperation &                               Industry Base of Shenzhen-Shantou
 the Connected Transaction Concerning Proposed Transfer of                             Special Cooperation & the Connected
                                                                 March 12, 2019
 100% of the Equity of Shenzhen-Shantou Cooperation Zone                               Transaction Concerning Proposed
 SEG Longyan Energy Technology Co., Ltd. Held by the                                   Transfer of 100% of the Equity of
 Holding Subsidiary                                                                    Shenzhen-Shantou Cooperation Zone
                                                                                       SEG Longyan Energy Technology Co.,
                                                                                       Ltd. Held by the Holding Subsidiary

 14. Leasing of the entire commercial podium of SEG Times
 Plaza by the wholly-owned subsidiary Nantong SEG Times
 Plaza Development Co., Ltd. and execution of the lease                                http://www.cninfo.com.cn
 contract                                                                              Announcement on Leasing of the Entire
 The wholly-owned subsidiary Nantong SEG Times Plaza                                   Commercial Podium of SEG Times Plaza
 Development Co., Ltd. and Red Star Macalline Group              January 16, 2019      by the Wholly-owned Subsidiary
 Corporation Ltd. ("Macalline") entered into the Lease                                 Nantong SEG Times Plaza Development
 Contract. The Company leased the entire commercial                                    Co., Ltd. and Execution of the Lease
 podium of Nantong SEG Times Plaza (with a total area of                               Contract
            2
 57,481 m ) to Macalline. The lease term is 15 years. The
 total contract price is RMB 246,731,000.

 15. Payment of the transaction consideration of SEG Group                             http://www.cninfo.com.cn

 for major assets restructuring                                                        Report of Share Issuance and Cash
                                                                 January 18, 2017      Payment to Acquire Assets and Raise
 According to the major assets restructuring appraisal results
 and the transaction payment method, 86.90% of the                                     Supporting Funds & Connected

 transaction consideration for 55% of equity of SEG                                    Transaction

 Recreation, 100% of equity of SEG Property, 100% of                                   http://www.cninfo.com.cn
 equity of SegMaker, and 79.02% of equity of SEG Real                                  Announcement of Shenzhen SEG Co.,
 Estate (RMB 4,481,521,000 in total) was paid by non-public                            Ltd. on Transfer of Underlying Assets
                                                                 January 25, 2017
 offering of shares; 13.10% of the transaction consideration                           for Share Issuance and Cash Payment to
 (RMB 675,626,200) was paid in cash.                                                   Acquire Assets and Raise Funds &
 On January 19, 2017, the business registration alteration                             Connected Transactions
 procedures for the four target companies involved in the
                                                                                       http://www.cninfo.com.cn
 major assets restructuring of SEG Group were completed.
                                                                                       Announcement of Shenzhen SEG Co.,
 On February 25, 2017, 450,857,239 A-shares were
                                                                                       Ltd. on Transfer of Underlying Assets
 determined for non-public offering in the major assets
                                                                 March 4, 2017         for Share Issuance and Cash Payment to
 restructuring and were listed on March 6, 2017.
                                                                                       Acquire Assets and Raise Funds &
 On March 7, 2019, payment for the consideration of RMB                                Connected Transactions & Public
 675,626,200 in cash was completed.                                                    Offering of New Shares

Progress of share repurchase


                                                                 14
                                                                             Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.


□ Applicable   √ Not applicable
Progress of reduction of holding-shares in the form of centralized bidding
□ Applicable   √ Not applicable




                                                                 15
                                                                                                                                     Full text of Q1 2019 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

                                                                                                                                     Commitment       Commitment
          Commitments                Subject          Type                                   Content                                                                    Performance
                                                                                                                                            date          term

 Commitment for share
                                  Not applicable
 reform

 Commitments in the
 Acquisition Report and the
                                  Not applicable
 Report of Changes on
 Equity

                                                                "After updating and restructuring of SEG Industrial Building, SEG                                    Extended
                                                                Economy Building, and SEG Recreation Industry Building, the                                          performance
                                                                area of added part that belongs to SegMaker, SEG Recreation and                                      (The Company
                                                                                            2
                                                                SEG Property is 2,855.20 m . SEG Group undertakes that the use                                       has applied for
                                                                of the temporary buildings belonged to SegMaker, SEG Recreation                                      extension of the
                                                                and SEG Property will be renewed after expiration of the two-year                                    license for the
                                                                use duration. In case when, due to failure in renewal of use of                                      said property and
 Commitments made at the          Shenzhen SEG
                                                   Other        temporary buildings, the listed company has any loss or the income   August 3,       April 20,       submitted
 time of restructuring of         Group Co.,
                                                   commitment   during the period from expiration of the performance commitment      2016            2024            application
 assets                           Ltd.
                                                                period to expiration of the evaluated income expected period is                                      materials to the
                                                                lower than the expected compensation, or the listed company has                                      relevant
                                                                any loss because the temporary buildings are required to be                                          competent
                                                                dismantled by governmental organs during the period from                                             authority for
                                                                expiration of the performance commitment period to expiration of                                     approval. SEG
                                                                the evaluated income expected period, SEG Group will                                                 Group is assisting
                                                                compensate the listed company timely and in full amount                                              with such

                                                                                           16
                                                                      Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.
according to the following compensation methods:                                                      extension
1. SEG Group has made commitments for the performance of the                                          application. The
subject company within three years after completion of major asset                                    renewal
restructuring. Influence of the updating and restructuring project                                    application is still
has been taken into account in the commitments.                                                       under approval

2. The amount of compensation for the income that is lower than                                       and the license

the expected income during the period from expiration of the                                          for renewal is not

performance commitment period to expiration of the evaluated                                          obtained yet.)

income expected period = (the predicted accumulated income to
the end of the report period - actual accumulated income to the end
of the 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
                           17
                                                                                                                                         Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.
                                                                   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 public         Not applicable
 offerings or refinancing

 Commitment on equity
                                Not applicable
 incentives

 Other commitments made
 to the medium and small
                                Not applicable
 shareholders of the
 Company

 Whether commitments were
                                No
 fulfilled on time

 For commitments
 unfulfilled in the
                                The Company has applied for extension of the license for the said property and submitted application materials to the relevant competent authority for
 commitment period, specify
                                approval. SEG Group is assisting with such extension application. The renewal application is still under approval and the license for renewal is not obtained
 the reasons for
                                yet.
 non-fulfillment and further
 plans


IV. Estimation of operating results of January-June 2019

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
                                                                                               18
                                                                                                                                                      Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.
□ Applicable   √ Not applicable


V. Securities investment

√ Applicable □ Not applicable
                                                                                                                                                                                                      Unit: Yuan

                                                                                         Profit
                                                                                        or loss
                                                                                                                   Amount
                                                                                         from       Accumulativ
                                                                                                                     of       Amount of          Profit or loss
                                           Initial         Accounting                   change e changes in
                Stock   Short form of                                   Opening book                               purchas    sales in the          in the         Closing book                        Source of
 Stock type                              investment       measurement                   s in fair    fair value                                                                    Accounting item
                code     the security                                      value                                   e in the     current            reporting          value                             capital
                                            cost              mode                      value in counted into
                                                                                                                   current      period              period
                                                                                          the         equity
                                                                                                                   period
                                                                                        current
                                                                                        period
Domestic                                                  Measuremen
                        Youhao                                                                                                                                                     Available-for-sal Self-owne
and overseas 600778                         90,405.00 t of fair            274,287.16                 47,787.86        0.00           0.00                0.00       322,075.02
                        Group                                                                                                                                                      e financial assets d capital
shares                                                    value
Domestic                                                  Measuremen
                        Huakong         173,687,994.4                   139,130,451.0                                         -7,455,408.8 -4,608,463.3                            Long term equity Self-owne
and overseas 000068                                       t of cost                                      -184.27                                                   127,066,394.6
                        SEG                           5                            9                                                         5                 4                   investment         d capital
shares                                                    method
Domestic                                                  Measuremen
                        SEG                                                                                                                                                        Available-for-sal Self-owne
and overseas 832770                      8,275,321.43 t of cost         13,515,392.83                                  0.00           0.00                0.00 13,515,392.83
                        Navigations                                                                                                                                                e financial assets d capital
shares                                                    method
Other securities investment held at
                                                                                                                                                                                                           -
the end of the period

                                        182,053,720.8                   152,920,131.0                                         -7,455,408.8 -4,608,463.3 140,903,862.4
Total                                                             --                        0.00      47,603.59        0.00                                                                -
                                                      8                            8                                                         5                 4              8




                                                                                                    19
                                                                                    Full text of Q1 2019 Report of Shenzhen SEG Co., Ltd.




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

January 7, 2019              Phone call             Individual            Inquire about recent operations of the Company.

                                                                          Inquire about whether the controlling shareholder of the
January 28, 2019             Phone call             Individual
                                                                          Company SEG Group has pledged stocks of the Company.

                                                                          Inquire   about    whether the    Company     will   release   the
January 29, 2019             Phone call             Individual
                                                                          performance forecast for 2018.

                                                                          Inquire about lawsuits involving the holding sub-subsidiary SEG
February 1, 2019             Phone call             Individual
                                                                          New Urban and suspension of some bank accounts.

                                                                          Inquire about the progress of suspension of some bank accounts
February 27, 2019            Phone call             Organization          of the holding sub-subsidiary SEG New Urban and whether the
                                                                          reason is known.

March 4, 2019                Phone call             Individual            Inquire about the latest number of shareholders of the Company.

March 11, 2019               Phone call             Individual            Consult the latest register of shareholders of the Company.

March 12, 2019               Phone call             Individual            Inquire about equity transfer of Shenzhen-Shantou Longyan.

March 21, 2019               Phone call             Individual            Inquire about the latest number of shareholders of the Company.

March 29, 2019               Phone call             Individual            Inquire about recent operations of the Company.


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.




                                                                     20
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                                                                                    Report of Shenzhen SEG Co., Ltd.




                                       Chapter 4 Financial Statements

I. Financial Statements

1. Consolidated Balance Sheet Statement

Prepared by: Shenzhen SEG Co., Ltd.
                                                  March 31, 2019
                                                                                                           Unit: Yuan

                     Item                         March 31, 2019                       December 31, 2018

Current assets:

     Monetary funds                                            1,230,137,703.98                    1,757,492,816.67

     Deposit reservation for balance

     Loans to other banks

     Trading financial assets

     Financial assets measured by fair
value with changes included in current
gains and losses

     Derivative financial assets

     Notes receivable and accounts
                                                                    74,163,820.86                     54,426,228.11
receivable

         Including: Notes receivable

                   Accounts receivable                              74,163,820.86                     54,426,228.11

     Advances                                                        1,542,058.75                      2,701,718.53

     Premiums receivable

     Reinsurance accounts receivable

     Reinsurance deposit receivable

     Other accounts receivable                                     139,939,762.92                   115,570,683.93

         Including: Interest receivable                              1,063,684.93                      1,063,684.93

                   Dividends receivable                              2,000,000.00                      2,000,000.00

     Redemptory monetary capital for
resale

     Inventory                                                 2,620,086,306.94                    2,670,294,017.74

     Contract assets

     Held-for-sale assets



                                                       21
                                                                                     Full text of Q1 2019
                                                                        Report of Shenzhen SEG Co., Ltd.

       Non-current assets due within one
year

       Other current assets                           532,771,414.44                    468,083,201.09

Total current assets                                 4,598,641,067.89                  5,068,568,666.07

Non-current assets:

       Loans and advances issued

       Debt investment

       Financial assets available for sale                                                34,069,679.99

       Other debt investment

       Held-to-maturity investment

       Long-term receivables                           19,000,000.00                      19,000,000.00

       Long-term equity investment                    159,455,526.58                    172,684,147.74

       Other equity instrument investment              34,135,217.63

       Other non-current financial assets

       Investment properties                         1,398,792,580.02                  1,412,916,851.46

       Fixed assets                                    56,170,824.11                      59,351,351.90

       Construction in progress                       161,470,294.54                    151,214,015.76

       Productive biological assets

       Oil & gas assets

       Right-of-use assets

       Intangible assets                               31,224,808.45                      32,471,556.32

       Development expenses

       Goodwill                                                  0.00                              0.00

       Long-term expenses to be amortized              67,658,319.56                      73,769,436.90

       Deferred income tax assets                      55,185,914.76                      56,931,280.75

       Other non-current assets                        47,032,751.31                      47,032,751.31

Total non-current assets                             2,030,126,236.96                  2,059,441,072.13

Total assets                                         6,628,767,304.85                  7,128,009,738.20

Current liabilities:

       Short-term borrowing                           460,000,000.00                    520,000,000.00

       Loans from central bank

       Loans from other banks

       Trading financial liabilities

       Financial liabilities measured by fair
value with changes included in current


                                                22
                                                                                     Full text of Q1 2019
                                                                        Report of Shenzhen SEG Co., Ltd.

gains and losses

       Derivative financial liabilities

       Notes payable and accounts payable             290,397,686.55                    293,130,435.56

       Advances from customers                        609,813,302.36                    692,811,462.75

       Financial assets sold for repurchase

       Deposits from customers and
interbank

       Acting trading securities

       Acting underwriting securities

       Payroll payable                                 30,080,168.48                      44,065,725.59

       Taxes payable                                  171,476,588.03                    121,045,597.93

       Other payables                                 588,676,374.70                   1,021,673,905.77

         Including: Interest payable                     3,284,767.84                      4,943,712.80

                    Dividends payable                    4,196,371.01                      4,196,371.01

       Service charges and commissions
payable

       Reinsurance accounts payable

       Contract liabilities

       Held-for-sale liabilities

       Non-current liabilities due within one
                                                      258,569,415.58                    272,569,415.58
year

       Other current liabilities

Total current liabilities                            2,409,013,535.70                  2,965,296,543.18

Non-current liabilities:

       Insurance deposit

       Long-term borrowing                            710,000,000.00                    748,250,000.00

       Bonds payable                                  798,516,471.59                    787,752,107.90

         Including: Preferred stock

                 Perpetual capital securities

       Lease liabilities

       Long-term payables

       Long-term payroll payable

       Estimated liabilities                           90,254,503.10                      90,254,503.10

       Deferred income                                   6,257,529.58                      6,732,529.57

       Deferred income tax liabilities                 84,629,817.27                      79,875,150.30



                                                23
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                                                                                                    Report of Shenzhen SEG Co., Ltd.

     Other non-current liabilities

Total non-current liabilities                                                 1,689,658,321.54                     1,712,864,290.87

Total liabilities                                                             4,098,671,857.24                     4,678,160,834.05

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                                                            148,933,205.15                      156,892,820.25

     Less: Treasury shares

     Other comprehensive income                                                     147,322.80                             91,765.66

     Special reserve

     Surplus reserve                                                            152,762,534.98                      152,762,534.98

     General risk provision

     Undistributed profits                                                      382,575,139.48                      322,477,846.55

Total owners' equity attributable to the
                                                                              1,920,074,451.41                     1,867,881,216.44
parent company

     Minority shareholders' equity                                              610,020,996.20                      581,967,687.71

Total owners' equity                                                          2,530,095,447.61                     2,449,848,904.15

Total liabilities and owners' equity                                          6,628,767,304.85                     7,128,009,738.20


Legal representative: Chen Huijie                Person in charge of accounting: Yan Dongxia     Responsible person of the accounting
institution: Yan Dongxia


2. Balance Sheet Statement of the Parent Company

                                                                                                                           Unit: Yuan

                       Item                                       March 31, 2019                       December 31, 2018

Current assets:

     Monetary funds                                                             614,617,390.40                      971,108,422.35

     Trading financial assets

     Financial assets measured by fair value
with changes included in current gains and
losses

     Derivative financial assets

     Notes receivable and accounts
                                                                                    127,360.00                           217,360.00
receivable


                                                                      24
                                                                                   Full text of Q1 2019
                                                                      Report of Shenzhen SEG Co., Ltd.

       Including: Notes receivable

                    Accounts receivable                 127,360.00                         217,360.00

     Advances                                           256,415.82

     Other accounts receivable                     1,183,543,911.60                  1,098,488,672.67

       Including: Interest receivable                          0.00

                    Dividends receivable               2,000,000.00                      2,000,000.00

     Inventory

     Contract assets

     Held-for-sale assets

     Non-current assets due within one year

     Other current assets                              4,087,189.77                      4,172,729.68

Total current assets                               1,802,632,267.59                  2,073,987,184.70

Non-current assets:

     Debt investment

     Financial assets available for sale                                                33,515,392.83

     Other debt investment

     Held-to-maturity investment

     Long-term receivables                             9,000,000.00                      9,000,000.00

     Long-term equity investment                   1,312,118,572.24                  1,326,039,288.79

     Other equity instrument investment              33,515,392.83

     Other non-current financial assets

     Investment properties                          250,212,749.91                    252,842,527.62

     Fixed assets                                    17,463,525.28                      17,786,925.84

     Construction in progress                           356,437.64

     Productive biological assets

     Oil & gas assets

     Right-of-use assets

     Intangible assets                                 1,548,532.03                      1,671,913.78

     Development expenses

     Goodwill

     Long-term expenses to be amortized                8,774,276.34                      9,404,881.96

     Deferred income tax assets                        1,633,980.97                      1,673,932.41

     Other non-current assets                                                               39,560.00

Total non-current assets                           1,634,623,467.24                  1,651,974,423.23



                                              25
                                                                                     Full text of Q1 2019
                                                                        Report of Shenzhen SEG Co., Ltd.

Total assets                                         3,437,255,734.83                  3,725,961,607.93

Current liabilities:

       Short-term borrowing                           460,000,000.00                    520,000,000.00

       Trading financial liabilities

       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

       Advances from customers                         17,728,535.49                      22,491,215.88

       Contract liabilities

       Payroll payable                                   4,068,340.24                      5,143,700.56

       Taxes payable                                   14,536,082.17                       4,471,684.00

       Other payables                                 176,644,527.94                    439,491,749.59

         Including: Interest payable                     1,578,179.07                      1,578,179.07

                    Dividends payable

       Held-for-sale liabilities

       Non-current liabilities due within one
year

       Other current liabilities

Total current liabilities                             673,183,859.95                    991,804,724.14

Non-current liabilities:

       Long-term borrowing

       Bonds payable                                  799,068,579.49                    787,752,107.90

         Including: Preferred stock

                 Perpetual capital securities

       Lease liabilities

       Long-term payables

       Long-term payroll payable

       Estimated liabilities

       Deferred income                                   6,112,104.54                      6,592,529.57

       Deferred income tax liabilities

       Other non-current liabilities

Total non-current liabilities                         805,180,684.03                    794,344,637.47

Total liabilities                                    1,478,364,543.98                  1,786,149,361.61


                                                26
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                                                                                              Report of Shenzhen SEG Co., Ltd.

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                                                   223,456,332.26                          231,415,947.36

     Less: Treasury shares

     Other comprehensive income                                               -132.81                                   -55.90

     Special reserve

     Surplus reserve                                                   152,762,534.98                          152,762,534.98

     Undistributed profits                                             347,016,207.42                          319,977,570.88

Total owners' equity                                                 1,958,891,190.85                        1,939,812,246.32

Total liabilities and owners' equity                                 3,437,255,734.83                        3,725,961,607.93


3. Consolidated Profit Statement

                                                                                                                     Unit: Yuan

                       Item                   Amount incurred in the current period     Amount incurred in the previous period

I. Total operating revenue                                             376,087,480.56                          396,384,852.50

     Including: Operating revenue                                      376,087,480.56                          391,140,155.46

             Interest income                                                                                     5,020,857.08

             Earned premiums

             Service charges and
                                                                                                                   223,839.96
commissions income

II. Total operating cost                                               329,289,265.35                          334,036,630.74

     Including: Operating cost                                         241,791,059.45                          267,621,500.55

             Interest expenses

             Service charges and
commissions expenses

             Surrender value

             Net compensation pay-outs

             Net insurance deposit accrued

             Insurance dividends

             Reinsurance expenses

             Operating tax and surcharges                               31,785,231.34                           10,239,902.06



                                                             27
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                                                                     Report of Shenzhen SEG Co., Ltd.

                Sale expenses                         5,180,963.20                      7,610,500.75

                Management expenses                  27,336,991.45                     29,612,040.70

                R&D expenses

                Financial expenses                   23,195,019.91                     15,524,536.56

     Including: Interest expenses                    23,580,249.71

                  Interest income                    -2,423,553.92

                Loss from asset impairment                                              3,428,150.12

                Loss from credit impairment

     Add: Other income

            Income from investment (enter "-"
                                                     52,122,030.89                     43,590,161.83
for loss)

                Including: Income from
                                                     -7,720,418.78                     -5,476,059.45
investment in joint ventures or associates

            Income from exchange (enter "-"
for loss)

            Net exposure hedge return (enter
"-" for loss)

            Income from change of fair value
(enter "-" for loss)

            Income from asset disposal (enter
"-" for loss)

III. Operating profit (enter "-" for loss)           98,920,246.10                   105,938,383.59

     Add: Non-operating revenue                       1,059,075.24                      1,567,854.35

     Less: Non-operating expenses                      234,536.70                       4,264,049.51

IV. Total profit (enter "-" for total loss)          99,744,784.64                   103,242,188.43

     Less: Income tax                                29,451,629.62                     29,410,259.23

V. Net profit (enter "-" for net loss)               70,293,155.02                     73,831,929.20

     (I) Classified by continuity of
operations

     1. Net profit from continuing
                                                     70,293,155.02                     73,831,929.20
operations (enter "-" for net loss)

     2. Net profit from discontinuing
operations (enter "-" for net loss)

     (II) Classified by ownership

     1. Net profit attributable to the owner
                                                     60,097,292.93                     62,622,931.80
of the parent company




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     2. Profit and loss of minority
                                                      10,195,862.09                     11,208,997.40
shareholders

VI. Net of tax of other comprehensive
                                                         47,603.59                         -46,016.42
incomes

  Total owners' net of tax of other
comprehensive incomes attributable to the                47,603.59                         -30,654.12
parent company

     (I) Other comprehensive incomes not to
be reclassified into gains and losses

             1. Changes of the re-measured
defined benefit plans

             2. Other comprehensive
incomes not to be reclassified into gains and
losses under the equity method

             3. Changes in fair value of other
equity instruments investment

             4. Changes in fair value of the
enterprise's own credit risk

             5. Others

     (II) Other comprehensive incomes to be
                                                         47,603.59                         -30,654.12
reclassified into gains and losses

             1. Other comprehensive
incomes to be reclassified into gains and                47,603.59                             -49.05
losses under the equity method

             2. Changes in fair value of other
debt investments

             3. Gains and losses from
changes of fair value of the                                                               -30,506.07
available-for-sale financial assets

             4. Amount of financial assets
reclassified into other comprehensive
income

             5. Held-to-maturity investments
categorized as gains and losses from the
available-for-sale financial assets

             6. Provision for impairment of
other debt investment credit

             7. Cash flow hedge reserve

             8. Foreign currency translation


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differences

              9. Others

  Net of tax of other comprehensive income
                                                                                                                         -15,362.30
attributable to minority shareholders

VII. Total comprehensive income                                             70,340,758.61                             73,785,912.78

     Total comprehensive income
attributable to shareholders of the parent                                  60,128,925.82                             62,592,277.68
company

     Total comprehensive income
                                                                            10,211,832.79                             11,193,635.10
attributable to minority shareholders

VIII. Earnings per share

     1. Basic earnings per share                                                    0.0486                                   0.0507

     2. Diluted earnings per share                                                  0.0486                                   0.0507

In case of merger of enterprises under common control in the current period, the net profit of the merged party recognized before
merger is RMB 0.00 and the net profit of the merged party in the previous period is RMB 0.00.
Legal representative: Chen Huijie        Person in charge of accounting: Yan Dongxia          Responsible person of the accounting
institution: Yan Dongxia


4. Profit Statement of the Parent Company

                                                                                                                           Unit: Yuan

                     Item                        Amount incurred in the current period       Amount incurred in the previous period

I. Operating revenue                                                        20,516,104.34                             19,007,580.23

     Less: Operating cost                                                    9,266,866.74                             10,624,151.64

            Tax and surcharges                                               1,038,804.70                              1,075,625.92

            Sale expenses                                                      252,056.61

            Management expenses                                              6,319,012.27                              3,949,591.80

            R&D expenses

            Financial expenses                                              14,744,143.83                              5,261,030.51

     Including: Interest expenses                                           16,284,676.62

                Interest income                                              -3,376,552.77

            Loss from asset impairment

              Loss from credit impairment

     Add: Other income

            Income from investment (enter "-"
                                                                            48,706,678.30                             46,361,937.23
for loss)

            Including: Income from                                           -6,465,030.50                            -4,250,907.89



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investment in joint ventures or associates

           Net exposure hedge income (enter
"-" for loss)

           Income from change of fair value
(enter "-" for loss)

           Income from asset disposal (enter
"-" for loss)

II. Operating profit (enter "-" for loss)                37,601,898.49                     44,459,117.59

     Add: Non-operating revenue                            488,166.99                         561,600.03

     Less: Non-operating expenses                           41,873.20                          13,788.00

III. Total profit (enter "-" for total loss)             38,048,192.28                     45,006,929.62

     Less: Income tax                                    11,009,555.74                     11,366,905.21

IV. Net profit (enter "-" for net loss)                  27,038,636.54                     33,640,024.41

     (I) Net profit from continuing
                                                         27,038,636.54                     33,640,024.41
operations (enter "-" for net loss)

     (II) Net profit from discontinuing
operations (enter "-" for net loss)

V. Net of tax of other comprehensive
                                                               -184.27                            -49.05
incomes

     (I) Other comprehensive incomes not
to be reclassified into gains and losses

                1. Changes of the re-measured
defined benefit plans

                2. Other comprehensive
incomes not to be reclassified into gains and
losses under the equity method

                3. Changes in fair value of other
equity instruments investment

                4. Changes in fair value of the
enterprise's own credit risk

                5. Others

     (II) Other comprehensive incomes to be
                                                               -184.27                            -49.05
reclassified into gains and losses

                1. Other comprehensive
incomes to be reclassified into gains and                      -184.27                            -49.05
losses under the equity method

                2. Changes in fair value of other
debt investments


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                                                                                                Report of Shenzhen SEG Co., Ltd.

              3. Gains and losses from
changes of fair value of the
available-for-sale financial assets

              4. Amount of financial assets
reclassified into other comprehensive
income

              5. Held-to-maturity investments
categorized as gains and losses from the
available-for-sale financial assets

              6. Provision for impairment of
other debt investment credit

              7. Cash flow hedge reserve

              8. Foreign currency translation
differences

              9. Others

VI. Total comprehensive income                                            27,038,452.27                           33,639,975.36

VII. Earnings per share

     1. Basic earnings per share

     2. Diluted earnings per share




5. Consolidated Cash Flow Statement

                                                                                                                       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 and
                                                                         288,094,199.99                          386,113,295.26
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



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                                                                       Report of Shenzhen SEG Co., Ltd.

     Net increase in financial assets
measured by fair value with changes
included in current gains and losses

     Cash received from interest, handling
                                                         371,052.26                       4,661,395.77
charges and commissions

     Net increase in loans from other banks

     Net increase in redemption capital

     Net cash received from acting trading
securities

     Tax refunds

     Other cash received from operating
                                                       85,403,184.28                   162,307,155.67
activities

Subtotal of cash inflow from operating
                                                      373,868,436.53                   553,081,846.70
activities

     Cash paid for goods and service                  104,282,449.76                   244,997,988.68

     Net increase in loans to customers and
                                                                                        -16,784,988.00
advances

     Net increase in deposits with central
bank and interbank

     Cash paid for indemnity payment of the
original insurance contract

     Net increase in financial assets held for
trading purposes

     Net increase in lending funds

     Cash paid for interest, handling charges
                                                                                             15,359.20
and commissions

     Cash paid as insurance dividends

     Cash paid to and on behalf of
                                                       74,373,921.08                     78,163,795.83
employees

     Taxes paid                                        37,114,103.27                     70,845,921.44

     (1) Other cash received from operating
                                                      168,220,603.93                   177,009,103.88
activities

Subtotal of cash outflow in operating
                                                      383,991,078.04                   554,247,181.03
activities

Net cash flow from operating activities               -10,122,641.51                     -1,165,334.33

III. Cash flow from financing activities:

     Cash received from disposal of
                                                      355,042,739.73                   359,690,000.00
investments


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                                                                   Report of Shenzhen SEG Co., Ltd.

     Cash received from returns on
                                                  58,464,069.12                      52,184,734.09
investments

     Net cash received from disposal of
fixed assets, intangible assets and other
long-term assets

     Net cash received from disposal of
                                                                                     -3,394,971.91
subsidiaries and other business units

     Other cash received from financing
                                                                                         79,263.84
activities

Subtotal of cash inflow from financing
                                                 413,506,808.85                    408,559,026.02
activities

     Cash paid for purchase and
construction of fixed assets, intangible            4,150,185.67                     32,963,785.60
assets and other long-term assets

     Cash paid for investment                    793,128,340.34                    350,880,000.00

     Net increase in mortgage loans

     Net cash paid for acquisition of
subsidiaries and other business units

     Other cash paid for investment
                                                                                         78,250.87
activities

Subtotal of cash outflow in financing
                                                 797,278,526.01                    383,922,036.47
activities

Net cash flow arising from financing
                                                 -383,771,717.16                     24,636,989.55
activities

III. Cash flow from financing activities:

     Cash received from absorbing
                                                                                        980,000.00
investment

     Including: Cash received by
subsidiaries from investment of minority
shareholders

     Borrowings received                         250,000,000.00                    152,000,000.00

     Cash received from bond issue

     Other cash received from financing
                                                                                     15,000,000.00
activities

Subtotal of cash inflow from financing
                                                 250,000,000.00                    167,980,000.00
activities

     Cash paid for debt repayment                375,632,579.00                    281,320,347.76

     Cash paid for dividend and profit              8,805,931.09                     12,986,315.44



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distribution or interest payment

     Including: Dividends and profit paid by
subsidiaries to minority shareholders

     Other cash paid for financing activities                                                                      4,238,250.00

Subtotal of cash outflow in financing
                                                                         384,438,510.09                          298,544,913.20
activities

Net cash flow arising from financing
                                                                        -134,438,510.09                         -130,564,913.20
activities

IV. Influence of exchange rate fluctuation on
cash and cash equivalents

V. Net increase of cash and cash equivalents                            -528,332,868.76                         -107,093,257.98

     Add: Opening balance of cash and cash
                                                                       1,758,470,572.74                          951,482,605.92
equivalents

VI. Closing balance of cash and cash
                                                                       1,230,137,703.98                          844,389,347.94
equivalents




6. Cash Flow Statement of the Parent Company

                                                                                                                       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 and
                                                                          14,920,675.13                           16,362,940.86
rendering of services

     Tax refunds

     Other cash received from operating
                                                                         133,005,791.11                          102,294,007.13
activities

Subtotal of cash inflow from operating
                                                                         147,926,466.24                          118,656,947.99
activities

     Cash paid for goods and service                                       7,910,812.48                           13,935,879.77

     Cash paid to and on behalf of
                                                                           8,210,460.43                            9,029,567.41
employees

     Taxes paid                                                            1,218,697.98                            2,240,849.30

     Other cash received from operating
                                                                         173,302,675.36                          125,336,391.41
activities

Subtotal of cash outflow in operating
                                                                         190,642,646.25                          150,542,687.89
activities

Net cash flow from operating activities                                  -42,716,180.01                          -31,885,739.90



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II. Cash flow from financing activities:

     Cash received from disposal of
                                                      40,000,000.00                    180,000,000.00
investments

     Cash received from returns on
                                                      54,667,639.02                      51,024,186.69
investments

     Net cash received from disposal of
fixed assets, intangible assets and other
long-term assets

     Net cash received from disposal of
subsidiaries and other business units

     Other cash received from financing
activities

Subtotal of cash inflow from financing
                                                      94,667,639.02                    231,024,186.69
activities

     Cash paid for purchase and
construction of fixed assets, intangible                                                    114,000.00
assets and other long-term assets

     Cash paid for investment                        260,000,000.00                    105,000,000.00

     Net cash paid for acquisition of
subsidiaries and other business units

     Other cash paid for investment
activities

Subtotal of cash outflow in financing
                                                     260,000,000.00                    105,114,000.00
activities

Net cash flow arising from investment
                                                     -165,332,360.98                   125,910,186.69
activities

III. Cash flow from financing activities:

     Cash received by absorbing investment

     Borrowings received                             250,000,000.00                    152,000,000.00

     Cash received from bond issue

     Other cash received from financing
                                                      17,546,666.67                       1,963,333.34
activities

Subtotal of cash inflow from financing
                                                     267,546,666.67                    153,963,333.34
activities

     Cash paid for debt repayment                    310,000,000.00                    200,000,000.00

     Cash paid for dividend and profit
                                                        6,256,774.15                      6,088,791.66
distribution or interest payment

     Other cash paid for financing activities        100,000,000.00                       4,000,000.00


                                                36
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Subtotal of cash outflow in financing
                                                                             416,256,774.15                   210,088,791.66
activities

Net cash flow arising from financing
                                                                            -148,710,107.48                    -56,125,458.32
activities

IV. Influence of exchange rate fluctuation
on cash and cash equivalents

V. Net increase of cash and cash equivalents                                -356,758,648.47                     37,898,988.47

     Add: Opening balance of cash and cash
                                                                             971,376,038.87                   104,463,125.70
equivalents

VI. Closing balance of cash and cash
                                                                             614,617,390.40                   142,362,114.17
equivalents


II. Adjustments to Financial Statements

1. Adjustments in first implementation of new standards for financial instruments, new standards for
income, and new standards for lease, and first implementation of financial statements at the beginning of
the year

√ Applicable □ Not applicable
Consolidated Balance Sheet Statement
                                                                                                                    Unit: Yuan

                                                                                              Amount of
                   Item                      December 31, 2018           January 1, 2019
                                                                                              adjustment

Current assets:

     Monetary funds                              1,757,492,816.67         1,757,492,816.67

     Deposit reservation for balance

     Loans to other banks

     Trading financial assets                  Not applicable

     Financial assets measured by
fair value with changes included in                                      Not applicable
current gains and losses

     Derivative financial assets

     Notes receivable and accounts
                                                    54,426,228.11            54,426,228.11
receivable

       Including: Notes receivable

                  Accounts receivable               54,426,228.11            54,426,228.11

     Advances                                        2,701,718.53             2,701,718.53

     Premiums receivable



                                                                    37
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       Reinsurance accounts
receivable

       Reinsurance deposit receivable

       Other accounts receivable             115,570,683.93           115,570,683.93

         Including: Interest receivable         1,063,684.93             1,063,684.93

                   Dividends receivable         2,000,000.00             2,000,000.00

       Redemptory monetary capital
for resale

       Inventory                            2,670,294,017.74         2,670,294,017.74

       Contract assets                    Not applicable

       Held-for-sale assets

       Non-current assets due within
one year

       Other current assets                  468,083,201.09           468,083,201.09

Total current assets                        5,068,568,666.07         5,068,568,666.07

Non-current assets:

       Loans and advances issued

       Debt investment                    Not applicable

       Financial assets available for
                                               34,069,679.99        Not applicable      -34,069,679.99
sale

       Other debt investment              Not applicable

       Held-to-maturity investment                                  Not applicable

       Long-term receivables                   19,000,000.00            19,000,000.00

       Long-term equity investment           172,684,147.74           172,684,147.74

       Other equity instrument
                                          Not applicable                34,069,679.99    34,069,679.99
investment

       Other non-current financial
                                          Not applicable
assets

       Investment properties                1,412,916,851.46         1,412,916,851.46

       Fixed assets                            59,351,351.90            59,351,351.90

       Construction in progress              151,214,015.76           151,214,015.76

       Productive biological assets

       Oil & gas assets

       Right-of-use assets                Not applicable

       Intangible assets                       32,471,556.32            32,471,556.32

       Development expenses


                                                               38
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                                                                                      Report of Shenzhen SEG Co., Ltd.

     Goodwill

     Long-term expenses to be
                                             73,769,436.90            73,769,436.90
amortized

     Deferred income tax assets              56,931,280.75            56,931,280.75

     Other non-current assets                47,032,751.31            47,032,751.31

Total non-current assets                  2,059,441,072.13         2,059,441,072.13

Total assets                              7,128,009,738.20         7,128,009,738.20

Current liabilities:

     Short-term borrowing                  520,000,000.00           520,000,000.00

     Loans from central bank

     Loans from other banks

     Trading financial liabilities      Not applicable

     Financial liabilities measured
by fair value with changes included                               Not applicable
in current gains and losses

     Derivative financial liabilities

     Notes payable and accounts
                                           293,130,435.56           293,130,435.56
payable

     Advances from customers               692,811,462.75           692,811,462.75

     Financial assets sold for
repurchase

     Deposits from customers and
interbank

     Acting trading securities

     Acting underwriting securities

     Payroll payable                         44,065,725.59            44,065,725.59

     Taxes payable                         121,045,597.93           121,045,597.93

     Other payables                       1,021,673,905.77         1,021,673,905.77

        Including: Interest payable           4,943,712.80             4,943,712.80

                   Dividends payable          4,196,371.01             4,196,371.01

     Service charges and
commissions payable

     Reinsurance accounts payable

     Contract liabilities               Not applicable

     Held-for-sale liabilities

     Non-current liabilities due           272,569,415.58           272,569,415.58


                                                             39
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within one year

     Other current liabilities

Total current liabilities                       2,965,296,543.18         2,965,296,543.18

Non-current liabilities:

     Insurance deposit

     Long-term borrowing                          748,250,000.00           748,250,000.00

     Bonds payable                                787,752,107.90           787,752,107.90

        Including: Preferred stock

        Perpetual capital securities

     Lease liabilities                        Not applicable

     Long-term payables

     Estimated liabilities                         90,254,503.10             90,254,503.10

     Deferred income                                6,732,529.57              6,732,529.57

     Deferred income tax liabilities               79,875,150.30             79,875,150.30

     Other non-current liabilities

Total non-current liabilities                   1,712,864,290.87         1,712,864,290.87

Total liabilities                               4,678,160,834.05         4,678,160,834.05

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           156,892,820.25

     Less: Treasury shares

     Other comprehensive income                        91,765.66                 91,765.66

     Surplus reserve                              152,762,534.98           152,762,534.98

     General risk provision

     Undistributed profits                        322,477,846.55           322,477,846.55

Total owners' equity attributable to
                                                1,867,881,216.44         1,867,881,216.44
the parent company

     Minority shareholders' equity                581,967,687.71           581,967,687.71

Total owners' equity                            2,449,848,904.15         2,449,848,904.15

Total liabilities and owners' equity            7,128,009,738.20         7,128,009,738.20

Notes to adjustments
In 2017,    the ministry of finance issued the revised "accounting standards for enterprises no. 22 - recognition and measurement of


                                                                   40
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financial instruments", "the accounting standards for enterprises no. 23 - transfer of financial assets", "the accounting standards for
enterprises no. 24 - hedging accounting" and "accounting standards for enterprises no. 37 - presentation of financial instruments
(generally referred to as the" new financial instruments standards "), and new financial instruments accounting standards      shall enter
into force as of January 1, 2019 for domestic listed companies. According to the new financial instrument standards, the company
will hold the equity investment designated as fair value measurement and its changes into other comprehensive income of
non-trading equity instrument investment, financial statements to other equity instrument investment.
Balance Sheet Statement of the Parent Company
                                                                                                                               Unit: Yuan

                                                                                                      Amount of
                    Item                   December 31, 2018             January 1, 2019
                                                                                                      adjustment

Current assets:

       Monetary funds                             971,108,422.35             971,108,422.35

       Trading financial assets                    Not applicable

       Financial assets measured by
fair value with changes included in                                       Not applicable
current gains and losses

       Derivative financial assets

       Notes receivable and accounts
                                                       217,360.00                217,360.00
receivable

         Including: Notes receivable

                   Accounts receivable                 217,360.00                217,360.00

       Advances

       Other accounts receivable                1,098,488,672.67           1,098,488,672.67

         Including: Interest receivable

                   Dividends receivable              2,000,000.00              2,000,000.00

       Inventory

       Contract assets                             Not applicable

       Held-for-sale assets

       Non-current assets due within
one year

       Other current assets                          4,172,729.68              4,172,729.68

Total current assets                            2,073,987,184.70           2,073,987,184.70

Non-current assets:

       Debt investment                             Not applicable

       Financial assets available for
                                                    33,515,392.83         Not applicable               -33,515,392.83
sale

       Other debt investment                       Not applicable



                                                                    41
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                                                                                    Report of Shenzhen SEG Co., Ltd.

     Held-to-maturity investment                                Not applicable

     Long-term receivables                  9,000,000.00             9,000,000.00

     Long-term equity investment        1,326,039,288.79         1,326,039,288.79

     Other equity instrument
                                          Not applicable            33,515,392.83    33,515,392.83
investment

     Other non-current financial
                                          Not applicable
assets

     Investment properties               252,842,527.62           252,842,527.62

     Fixed assets                         17,786,925.84             17,786,925.84

     Construction in progress

     Productive biological assets

     Oil & gas assets

     Right-of-use assets                  Not applicable

     Intangible assets                      1,671,913.78             1,671,913.78

     Development expenses

     Goodwill

     Long-term expenses to be
                                            9,404,881.96             9,404,881.96
amortized

     Deferred income tax assets             1,673,932.41             1,673,932.41

     Other non-current assets                 39,560.00                 39,560.00

Total non-current assets                1,651,974,423.23         1,651,974,423.23

Total assets                            3,725,961,607.93         3,725,961,607.93

Current liabilities:

     Short-term borrowing                520,000,000.00           520,000,000.00

     Trading financial liabilities        Not applicable

     Financial liabilities measured
by fair value with changes included                             Not applicable
in current gains and losses

     Derivative financial liabilities

     Notes payable and accounts
                                             206,374.11                206,374.11
payable

     Advances from customers              22,491,215.88             22,491,215.88

     Contract liabilities                 Not applicable

     Payroll payable                        5,143,700.56             5,143,700.56

     Taxes payable                          4,471,684.00             4,471,684.00

     Other payables                      439,491,749.59           439,491,749.59


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        Including: Interest payable                  1,578,179.07              1,578,179.07

                    Dividends payable

     Held-for-sale liabilities

     Non-current liabilities due
within one year

     Other current liabilities

Total current liabilities                         991,804,724.14             991,804,724.14

Non-current liabilities:

     Long-term borrowing

     Bonds payable                                787,752,107.90             787,752,107.90

        Including: Preferred stock

           Perpetual capital securities

     Lease liabilities                             Not applicable

     Long-term payables

     Estimated liabilities

     Deferred income                                 6,592,529.57              6,592,529.57

     Deferred income tax liabilities

     Other non-current liabilities

Total non-current liabilities                     794,344,637.47             794,344,637.47

Total liabilities                               1,786,149,361.61           1,786,149,361.61

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                              231,415,947.36             231,415,947.36

     Less: Treasury shares

     Other comprehensive income                             -55.90                    -55.90

     Surplus reserve                              152,762,534.98             152,762,534.98

     Undistributed profits                        319,977,570.88             319,977,570.88

Total owners' equity                            1,939,812,246.32           1,939,812,246.32

Total liabilities and owners' equity            3,725,961,607.93           3,725,961,607.93

Notes to adjustments
In 2017,    the ministry of finance issued the revised "accounting standards for enterprises no. 22 - recognition and measurement of
financial instruments", "the accounting standards for enterprises no. 23 - transfer of financial assets", "the accounting standards for


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                                                                                                    Report of Shenzhen SEG Co., Ltd.

enterprises no. 24 - hedging accounting" and "accounting standards for enterprises no. 37 - presentation of financial instruments
(generally referred to as the" new financial instruments standards "), and new financial instruments accounting standards   shall enter
into force as of January 1, 2019 for domestic listed companies. According to the new financial instrument standards, the company
will hold the equity investment designated as fair value measurement and its changes into other comprehensive income of
non-trading equity instrument investment, financial statements to other equity instrument investment.


2. Retroactive adjustments of comparative date of previous periods in first implementation of new
standards for financial instruments and new standards for lease

□Applicable   √ Not applicable


III. Audit Report

Is the Q1 report audited?
□ Yes √ No
The Q1 report of the Company has not been audited.




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