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深赛格B:2019年第三季度报告全文(英文版)2019-10-31  

						Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.




                                        Shenzhen SEG Co., Ltd.

                                        2019 3rd Quarter Report




                                                  October 2019




1
Body of 2019 3rd Quarter 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 quarter report is

authentic, accurate, and complete, and that it has no false records misleading

statements or major omissions and they are jointly and severally liable.

       Chairman of the Board of Directors Zhang Liang, the Chief Financial

Officer Yan Dongxia and the responsible person of the accounting institution

(Accountant in charge) Wang Lei hereby declare that the Financial Statements

enclosed in this quarter report are true, accurate and complete.




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Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.




                                                      Definitions

                                              Refers
                  Definition                                                           Description
                                                 to

This Company, the Company, the listed         Refers
                                                       Shenzhen SEG Co., Ltd.
company, Shen SEG                                to

                                              Refers
Shenzhen SEG Group Co., Ltd.                           Shenzhen SEG Group Co., Ltd.
                                                 to

                                              Refers
Suzhou TST                                             Suzhou TST Control Technology Co., Ltd.
                                                 to

                                              Refers
Nanjing SEG                                            Shenzhen SEG Nanjing Electronics M arket M anagement Co., Ltd.
                                                 to

                                              Refers
Nanning SEG                                            Nanning SEG Digital Plaza M anagement Co., Ltd.
                                                 to

                                              Refers
SEG Credit                                             Shenzhen SEG Credit Co., Ltd.
                                                 to

                                              Refers
Nantong SEG                                            Nantong SEG Times Plaza M anagement Co., Ltd.
                                                 to

                                              Refers
Nantong SEG Operation                                  Nantong SEG Commercial Operation M anagement Co., Ltd.
                                                 to

                                              Refers
Hangzhou SEG Longyan                                   Hangzhou SEG Longyan Energy Technology Co., Ltd.
                                                 to

                                              Refers Shenzhen-Shantou Special Cooperation Zone SEG Longyan Energy
Shenzhen-Shantou SEG Longyan Technology
                                                 to    Technology Co., Ltd.

                                              Refers
SEG Real Estate                                        Shenzhen SEG Real Estate Investment Co., Ltd.
                                                 to

                                              Refers
SEG Property Development                               Shenzhen SEG Property Development Co., Ltd.
                                                 to

                                              Refers
SEG Recreation                                         Shenzhen SEG Recreation Enterprise Development Co., Ltd.
                                                 to

                                              Refers
SegM aker                                              Shenzhen SegM aker Co., Ltd.
                                                 to

                                              Refers
SEG Property M anagement                               Shenzhen SEG Property M anagement Co., Ltd.
                                                 to

                                              Refers
SEG New Urban                                          Shenzhen SEG New Urban Construction Development Co., Ltd.
                                                 to

SEG Yicheng                                   Refers Shenzhen SEG Yicheng Science and Technology Co., Ltd.

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Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


                                                  to

                                               Refers SEG Real Estate, SEG Property Development, SEG Recreation and
Target companies
                                                  to     SegM aker that major assets are injected into

                                               Refers
Huakong SEG                                              Shenzhen Huakong SEG Co., Ltd.
                                                  to

                                               Refers
SEG Navigations                                          Shenzhen SEG GPS Scientific Navigations Co., Ltd.
                                                  to

                                               Refers
Zhaocheng Group                                          Shenzhen Zhaocheng Investment Group Co., Ltd.
                                                  to

Unless otherwise specified, the amount referred Refers
                                                         Amount in RM B
to in the report                                  to




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Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.



                                              Chapter 2 Company Profile

I. Main Accounting Data and Financial Indexes

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



                                                                                                              Increase/decrease at the end of
                                              Amount at the end of the
                                                                             Amount at the end of last year    the reporting period over the
                                                  reporting period
                                                                                                                       end of last year

Total assets (Yuan)                                       6,245,469,176.91                7,128,009,738.20                            -12.38%

Net assets attributable to
shareholders of the listed company                        1,926,003,299.17                1,867,881,216.44                                3.11%
(Yuan)

                                                                                                                            Year-on-year
                                                                                                  Amount from           increase/decrease of
                                        Amount of the reporting            Year-on-year          beginning of the           amount from
                                                   period                increase/decrease     year to the end of the beginning of the year
                                                                                                 reporting period         to the end of the
                                                                                                                          reporting period

Operating income (Yuan)                            348,105,199.21                    -38.03%      1,113,596,884.35                    -22.92%

Net profit attributable to
shareholders of the listed company                  26,970,095.87                    -33.24%        110,257,647.89                    -20.14%
(Yuan)

Net profit attributable to
shareholders of the listed company
                                                    14,803,482.35                    -58.32%         44,030,014.96                    -50.18%
after deduction of non-recurring
profit and loss (Yuan)

Net cash flow from operating
                                                     --                         --                  101,017,368.07                        14.26%
activities (Yuan)

Basic EPS (yuan/share)                                       0.0218                  -33.33%                  0.0892                  -20.14%

Diluted EPS (yuan/share)                                     0.0218                  -33.33%                  0.0892                  -20.14%

Weighted average ROE                                          1.42%                   -0.65%                  5.81%                       -1.28%



Total capital stock of the Company as of the trading day prior to disclosure:

    Total capital stock of the Company as of the
                                                                                                                               1,235,656,249
    trading day prior to disclosure (share)




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Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


Fully diluted earnings per share calculated based on the current capital stock:

    Fully diluted earnings per share calculated based
                                                                                                                                0.0892
    on the current capital stock (Yuan/share)



Items and Amount of Non-recurring Profit and Loss:
 Applicable □ Not applicable

                                                                                                                            Unit: yuan

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

                                                                                                     Reduce holding-shares of
                                                                                                     Huakong SEG and transfer the
Profit or loss on disposal of non-current assets (including the
                                                                                    77,328,300.79 equity of Shenzhen-Shantou SEG
write-off of assets depreciation reserves)
                                                                                                     Longyan Technology, resulting in
                                                                                                     income.

Tax return, reduction or exemption with unauthorized approval or
without any official approval document

Government subsidies recognized in current profit or loss (except
                                                                                      4,369,752.53
those closely related to corporate business and enjoyed according
to national standards or certain quota)

Fund appropriation charges for non-financial entities recognized
                                                                                      1,283,299.33
in current profit or loss

Gains on less acquisition costs of subsidiaries, associates and
joint ventures than the accrued fair value of the investee's
identifiable net assets

Profit or loss on non-monetary assets exchange

Profit or loss on investment or asset management in proxy                           14,130,364.08

Provision for impairment of assets due to force majeure(such as
natural disasters)

Profit or loss on debt restructuring

Corporate restructuring costs, such as staffing expenses and
integration costs

Profit or loss on the part exceeding the fair value in unfair
transactions

Current net profit or loss of subsidiaries incurred by business
combination under common control from the beginning of the
reporting period to the date of merger

Profit or loss on contingencies unrelated to business operation of
the Company


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Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


Profit or loss on changes in fair value due to holding of trading
financial assets, derivative financial assets, trading financial
liabilities and derivative financial liabilities, as well as investment
income from disposal of trading financial assets, derivative
financial assets, trading financial liabilities, derivative financial
liabilities and other debt investments, apart from valid hedging
operations related to business operation of the Company

Transferred-back impairment provision for accounts receivable
and contract assets for which separate impairment tests are carried
out

Profit or loss on consignment loan

Profit or loss on changes in fair value of investment property
subsequently measured by the fair value

Impact of one-time adjustment on the current profit or loss as
required by taxation or accounting laws and regulations

Trustee fee from entrusted operation                                                    113,676.10

Other non-operating income and expenses except the                                    2,103,245.10
above-mentioned items

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



Less: Amount of affected income tax                                                  24,832,159.48

        Effects of minority shareholders' equity (after tax)                          8,268,845.51

Total                                                                                66,227,632.94                  --

An explanation shall be made with regard to the Company's considerations for defining non-recurring profit and loss according to the
Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring
Profit and Loss and the reason of classifying the non-recurring profit and loss listed in this announcement as recurring.
□ Applicable          Not applicable

In the reporting period, no items of non-recurring profit and loss listed in the Explanatory Announcement on Information Disclosure
by Companies Offering Securities to the Public No. 1 — Non-recurring Profit and Loss are defined as items of recurring profit and
loss.


II. Numbe r of Shareholders and Shares Held by Top 10 Shareholde rs at the End of the
Reporting Period

1. Total Number of Common Shareholders and Preferred Shareholders Restored with the Voting Rights
and Shares Held by Top 10 Shareholders




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Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


                                                                                                                                 Unit: Share

                                                                         Total number of preferred
    Total number of common shareholders
                                                               89,083    shareholders restored with                                      0
    at the end of the reporting period
                                                                         the voting rights (if any)

                                                    Shares held by top 10 shareholders

                                                                                    Quantity of       Information on pledged or frozen
         Name of              Nature of         Shareholding      Number of
                                                                                     restricted                      shares
        shareholder          shareholder         proportion      shares held
                                                                                    shares held       Share status            Quantity

    Shenzhen SEG          State-owned legal
                                                  56.70%           700,628,759       450,857,239                     /                   /
    Group Co., Ltd.          person (01)

                           Domestic natural
    Liu Guocheng                                   0.58%             7,155,802                    /                  /                   /
                             person (03)

                           Domestic natural
    Liu Guohong                                    0.27%             3,318,098                    /                  /                   /
                             person (03)

                           Overseas natural
    Gong Qianhua                                   0.24%             2,940,000                    /                  /                   /
                             person (05)

    China
    Securities                Domestic
    Finance                non-state-owned         0.18%             2,271,900                    /                  /                   /
    Corporation            legal person (02)
    Limited

    LI      SHERYN         Overseas natural
                                                   0.16%             1,953,000                    /                  /                   /
    ZHAN M ING               person (05)

    Zhejiang
    Jiuzhang Asset
    M anagement
    Co.,     Ltd.     -   Funds and financial
                                                   0.15%             1,849,100                    /                  /                   /
    Jiuzhang                 products (06)
    Huangfang
    Haoyue No. 20
    Private Equity

                           Domestic natural
    Xu Yueying                                     0.14%             1,780,000                    /                  /                   /
                             person (03)

                           Overseas natural
    Fang Guowei                                    0.11%             1,389,480                    /                  /                   /
                             person (05)

    Chongqing
    International
                          Funds and financial
    Trust Co., Ltd.                                0.10%             1,220,000                    /                  /                   /
                             products (06)
    -            Yuxin
    Chuangxin


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Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


    Youshi No. 12
    Assembled
    Funds Trust

                                         Unrestricted Tradable Shares Held by Top 10 Shareholders

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

                                                                                                    RM B common
    Shenzhen SEG Group Co., Ltd.                                                249,771,520                                 249,771,520
                                                                                                             stocks

                                                                                                Domestically listed
    Liu Guocheng                                                                   7,155,802                                  7,155,802
                                                                                                     foreign shares

                                                                                                Domestically listed
    Liu Guohong                                                                    3,318,098                                  3,318,098
                                                                                                     foreign shares

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

    China     Securities   Finance    Corporation                                                   RM B common
                                                                                   2,271,900                                  2,271,900
    Limited                                                                                                  stocks

                                                                                                Domestically listed
    LI SHERYN ZHAN M ING                                                           1,953,000                                  1,953,000
                                                                                                     foreign shares

    Zhejiang Jiuzhang Asset M anagement Co.,
                                                                                                    RM B common
    Ltd. - Jiuzhang Huangfang Haoyue No. 20                                        1,849,100                                  1,849,100
                                                                                                             stocks
    Private Equity

                                                                                                Domestically listed
    Xu Yueying                                                                     1,780,000                                  1,780,000
                                                                                                     foreign shares

                                                                                                    RM B common
    Fang Guowei                                                                    1,389,480                                  1,389,480
                                                                                                             stocks

    Chongqing International Trust Co., Ltd. -
                                                                                                    RM B common
    Yuxin     Chuangxin      Youshi     No.     12                                 1,220,000                                  1,220,000
                                                                                                             stocks
    Assembled Funds Trust

                                                     Shenzhen SEG Group Co., Ltd has no association with other shareholders, nor it is
    Explanations on the association or               a concerted action unit as set forth in the Management Methods for Disclosure of
    concerted action among the                       Information on Changes in Shares Held by Shareholders of the Listed Company.
    above-mentioned shareholders                     Whether other shareholders have association with each other or they are concerted
                                                     action units is unknown.

    Information of top 10 shareholders
    participating in securities margin trading (if   None
    any)



Do top 10 common shareholders of the Company or top 10 common shareholders of non-restricted shares conduct agreed repurchase
transactions in the reporting period?
□ Yes  No

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Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


Top 10 common shareholders of the Company or top 10 common shareholders of non-restricted shares did not conduct agreed
repurchase transactions in the reporting period.


2. Number of Preferred Shareholders and Shares Held by Top 10 Preferred Shareholders

□ Applicable       Not applicable




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Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.




                                        Chapter 3 Important Matters

I. Changes in the Main Financial Data and Financial Indexes in the Reporting Period and the
Reasons

√ Applicable □ Not applicable


1. Items of Consolidated Balance Sheet Statement
                          Unit: yuan                                                                                 Unit: yuan
                                                                                                             Year-on-year
               Item                     Closing balance     Opening balance          Difference
                                                                                                        increase/decrease (%)

 M onetary funds                          744,965,034.99    1,757,492,816.67       -1,012,527,781.68                   -57.61%

 Accounts receivable                      112,757,804.08       54,426,228.11           58,331,575.97                  107.18%

 Notes receivable                            3,872,700.00                0.00           3,872,700.00                  100.00%

 Prepayment                                  6,272,695.31       2,701,718.53            3,570,976.78                  132.17%

 Other current assets                     802,688,238.76      468,083,201.09         334,605,037.67                    71.48%

 Intangible assets                           6,979,704.95      32,471,556.32          -25,491,851.37                   -78.51%

 Goodwill                                  11,231,391.49                 0.00          11,231,391.49                  100.00%

 Short-term borrowing                     103,500,000.00      520,000,000.00         -416,500,000.00                   -80.10%

 Taxes payable                            160,833,019.89      121,045,597.93           39,787,421.96                   32.87%

 Other payables                           564,743,730.63    1,021,673,905.77         -456,930,175.14                   -44.72%

 Non-current        liabilities   due
                                          143,069,415.58      272,569,415.58         -129,500,000.00                   -47.51%
 within one year

 Estimated liabilities                     56,077,659.53       90,254,503.10          -34,176,843.57                   -37.87%


(1) M onetary Funds: decreased by 57.61% with the amount of RMB 1,012,527,781.68 over the beginning of the period, mainly
because the company paid the final balance of cash consideration for major asset restructuring and returning bank loans in the
reporting period.
(2) Accounts receivable: increased by 107.18% with the amount of RM B 58,331,575.97 over the beginning of the period, mainly
because in the reporting period ① SEG Property M anagement Company, a subsidiary of SEG Real Estate, increased the property
management area and thus increased the accrual property management fee; ② Suzhou TST is a newly incorporated company, which
increased the company's accounts receivable ; ③ SEG Longyan Technology accounts receivable increased as sales increased.
(3) Notes receivable : increased by 100% with the amount of RM B 3,872,700.00 over the beginning of the period, mainly because
Suzhou TST is a newly incorporated company, which increased the company's accounts receivable by RM B 3,872,700.00.
(4) Prepayment: increased by 132.17% with the amount of RM B 3,570,976.78 over the beginning of the period, mainly because
Nanjing SEG paid the property rent and the property development company Yitian M anagement Office prepaid the elevator renewal
purchase in the reporting period.
(5) Other current assets: increased by 71.48% with the amount of RM B 334,605,037.67 over the beginning of the period, mainly


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Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


because the company purchased more bank financial products in the reporting period.
(6) Intangible assets: decreased by 78.51% with the amount of RM B 25,491,851.37 over the beginning of the period, mainly because
the company transferred the equity of Shenzhen-Shantou SEG Longyan Technology which resulted in reduction of land use rights in
the reporting period.
(7) Goodwill: increased by 100% with the amount of RM B 11,231,391.49 over the beginning of the period, mainly because the
company invested and acquired Suzhou TST in the reporting period.
(8) Short-term borrowing: decreased by 80.10% with the amount of RM B 416,500,000.00 over the beginning of the period, mainly
because the company repaid bank current loan in the reporting period.
(9) Tax payable: increased by 32.87% with the amount of RM B 39,787,421.96 over the beginning of the period, mainly because SEG
Real Estate accrued land value-added tax, house sales value-added tax and income tax in the reporting period.
(10) Other accounts payable: decreased by 44.97% with the amount of RM B 459,426,421.64 over the beginning of the period, mainly
because the company paid the final balance of cash consideration for major asset restructuring.
(11) Non-current liability due within one year: decreased by 47.51% with the amount of RM B 129,500,000.00 over the beginning of
the period, mainly because SEG Real Estate repaid bank loan due in the reporting period.
(12) Estimated liabilities: decreased by 37.87% with the amount of RM B 34,176,843.57 over the beginning of the period, mainly
because SEG New Urban paid liquidated damages in the reporting period.


2. Items of Consolidated Profit Statement
                                                                                                                           Unit: yuan
                                             Amount incurred         Amount of the                                   Year-on-year
                  Item                         in the current      same period of last      Difference             increase/decrease
                                                  period                  year                                           (%)
Interest income                                            0.00          6,480,864.92         -6,480,864.92                 -100.00%
Financial expenses                              85,467,639.68           52,818,041.75        32,649,597.93                      61.82%
Loss from asset impairment                            7,565.00           3,362,022.85         -3,354,457.85                    -99.77%
Non-operating expenses                           1,258,085.11           14,951,136.75       -13,693,051.64                     -91.59%
(1) Interest income: decreased by 100.00% with the amount of RM B 6,480,864.92 over the same period of last year, mainly because
the equity transfer of SEG Credit was completed in last April and no loan business of SEG Credit occurred in the reporting period.
(2) Financial expense: increased by 61.82% with the amount of RM B 32,649,597.93 over the same period of last year, mainly
because the company's external financing scale expanded.
(3) Assets impairment loss: decreased with the amount of RM B 3,354,457.85 over the same period of last year, Decreased by
99.77%,mainly because in the same period of last year SEG Credit accrued loan loss impairment while there is no such business in
the reporting period.
(4) Non-business expenditure: decreased by 91.59% with the amount of RMB 13,693,051.64 over the same period of last year,
mainly because in the same period of last year ① SEG Real Estate paid the contract termination fee (No. 2017 Yue 0307 M . C. 6835);
② Nanning SEG paid litigation indemnity, while no such business expenses occurred in the reporting period.


3. Items of Consolidated Cash Flow Statement
                                                                                                                      Year-on-year
                                            Amount incurred in      Amount of the same
                  Item                                                                            Difference        increase/decrease
                                            the current period       period of last year
                                                                                                                          (%)
 Cash received from interest and
                                                            0.00           6,311,198.08            -6,311,198.08            -100.00%
 commissions



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Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


 Other cash received related to
                                                 141, 023,349.87          253, 127,937.32        -112,104,587.45            -44.29%
 operating activities
 Cash paid for purchasing goods and
                                                376,476,832.61           565,344,689.47        -188,867,856.86             -33.41%
 receiving services
 Net increase in loans to customers and
                                                             0.00        -15,664,988.00          15,664,988.00            -100.00%
 prepayment

 Taxes paid                                     139,323,829.77           264,954,200.49        -125,630,370.72             -47.42%

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

 Borrowings received                            513,500,000.00           979,000,000.00        -465,500,000.00             -47.55%

 Other cash paid related to financing
                                                 110, 000,023.31          169, 669,157.90         -59,669, 134.59           -35.17%
 activities
(1) Cash charge for interest, service charges and commissions: decreased by 100.00% with the amount of RM B 6,311,198.08 over the
same period of last year, mainly because no loan business of SEG Credit occurred in the reporting period.
(2) Other cash received related to operating activities: decreased by 44.29% with the amount of RM B 112,104,587.45 over the s ame
period of last year, mainly because the company received less current payment in the reporting period.
(3)Cash paid for purchasing goods and receiving services decreased by 33.41% with the amount of RM B 188,867,856.86 over the
same period of last year, mainly because the company's sales situation was not as good as the same period of last year, and the
corresponding payment reduced.
(4) Net increase in customer loans and advances: decreased by 100.00% with the amount of RM B 15,664,988.00 over the same
period of last year, mainly because no loan business of SEG Credit occurred in the reporting period.
(5) Tax payments: decreased by 47.42% with the amount of RM B 125,630,370.72 over the same period of last year, mainly because
the corporate income tax and land value-added tax paid by the company and its holding subsidiaries decreased compared with the
same period of last year.
(6) Cash receipts from investments: decreased by 100.00% with the amount of RM B 980,000.00 over the same period of last year,
mainly because SEG Yicheng received investments from minority shareholders in the same period of last year.
(7) Borrowings received: decreased by 47.55% with the amount of RMB 465,500,000.00 over the same period of last year, mainly
because the company received less bank loans.
(8) Other cash paid related to financing activities: decreased by 35.17% with the amount of RM B 59,669,134.59 over the same p eriod
of last year, mainly because the amount of last year contained investments received by Longyan Technology from minority
shareholders.


II. Analysis of Development, Impacts and Solutions of Major Events

√ Applicable □ Not applicable

There are no other major events except for those in the table below.

                                                                                                Query index of the provisional
          Overview of major events                           Disclosure date
                                                                                               announcement disclosure website

                                                                                            http://www.cninfo.com.cn
 Implementation of interest distribution
                                              July 4, 2019                                  Announcement of Dividend Distribution
 (2018)
                                                                                            for 2018

 The plan of reducing holding-shares of       July 24, 2019                                 http://www.cninfo.com.cn


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Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


 Huakong SEG ended                                                 Announcement of the Implementation of
                                                                   Reduction of Holding-shares of
                                                                   Shenzhen Huakong SEG Co., Ltd.

 SEG New Urban received The Notice on
 Sealing up, Distraining, and Freezing
 Property served by the People's Court of
 Longgang      District,     Shenzhen    City,                     http://www.cninfo.com.cn/
 Guangdong       Province.      The     house    July 27, 2019     Risk Warning on House Property Sealing
 property on the second to fifth floors of                         up of the Holding Sub-subsidiary
 Building A of SEG New Urban Plaza
 under the name of SEG New Urban was
 sealed up

                                                                   http://www.cninfo.com.cn
 Zhu Longqing, Vice General M anager of
                                                 July 31, 2019     Announcement on the Resignation of
 the company, resigned due to job change
                                                                   Vice General Manager Zhu Longqing

                                                                   http://www.cninfo.com.cn
                                                                   Announcement on Receipt of the Civil
                                                 August 8, 2019    Ruling and the Notice on Assistance in

 SEG New Urban received the Civil                                  Enforcement      by     the        Holding

 Ruling and the Notice on Assistance in                            Sub-subsidiary

 Enforcement served by the Shenzhen                                http://www.cninfo.com.cn
 Intermediate People’s Court.                                     Announcement on Receipt of the Civil
                                                 August 24, 2019   Ruling and the Notice on Assistance in
                                                                   Enforcement      by     the        Holding
                                                                   Sub-subsidiary

                                                                   http://www.cninfo.com.cn
 SEG New Urban plans to sign the                                   Announcement on Proposed Agreement
 Agreement with Huang Zhihui and other           August 17, 2019   between the Holding Sub-subsidiary
 assignees of obligatory rights                                    SEG New Urban and Related Assignees
                                                                   of Obligatory rights

 SEG New Urban received the Notice of
 Trial from the Shenzhen International
 Court of Arbitration. The applicant                               http://www.cninfo.com.cn
 CITIC       Bank   filed     an   arbitration                     Announcement on Receipt of Notice of
                                                 August 27, 2019
 application about the financial loan                              Arbitration Trial by the Holding
 contract disputes between it and the                              Sub-subsidiary
 respondents such as Zhaocheng Group
 and SEG New Urban.

                                                                   http://www.cninfo.com.cn
 Announcement       on      Corporate   Stock    August 22, 2019
                                                                   Announcement on Stock Swing
 Swing
                                                 August 27, 2019   http://www.cninfo.com.cn


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Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


                                                                                  Announcement on Stock Swing

                                                                                  http://www.cninfo.com.cn
                                          August 30, 2019
                                                                                  Announcement on Stock Swing

                                                                                  http://www.cninfo.com.cn
                                                                                  Temporary     Trusteeship   Management
                                          August 5, 2019                          Report (V) for Public Offering of
                                                                                  Corporate Bonds to Qualified Investors
                                                                                  (1st Issue) in 2018

                                                                                  http://www.cninfo.com.cn
                                                                                  Temporary     Trusteeship   Management
 Public offering of corporate bonds       August 20, 2019                         Report (VI) for Public Offering of
                                                                                  Corporate Bonds to Qualified Investors
                                                                                  (1st Issue) in 2018

                                                                                  http://www.cninfo.com.cn
                                                                                  Temporary     Trusteeship   Management
                                          August 26, 2019                         Report (VII) for Public Offering of
                                                                                  Corporate Bonds to Qualified Investors
                                                                                  (1st Issue) in 2018

                                                                                  http://www.cninfo.com.cn/
                                                                                  Announcement on the Coupon Rate
                                          August 27, 2019                         Adjustment            and     Put-back
                                                                                  Implementation Measures for Corporate
                                                                                  Bond No. 18 SEG 02

                                                                                  http://www.cninfo.com.cn/
                                                                                  First Suggestive Announcement on the
                                                                                  Coupon Rate Adjustment and Put-back
                                                                                  Implementation Measures for Corporate
                                                                                  Bond No. 18 SEG 02, Second Suggestive
                                                                                  Announcement on the Coupon Rate
 M atters on corporate bond No. 18 SEG
                                          from August 28, 2019 to June 30, 2019   Adjustment            and     Put-back
 02
                                                                                  Implementation Measures for Corporate
                                                                                  Bond No. 18 SEG 02, Third Suggestive
                                                                                  Announcement on the Coupon Rate
                                                                                  Adjustment            and     Put-back
                                                                                  Implementation Measures for Corporate
                                                                                  Bond No. 18 SEG 02

                                                                                  http://www.cninfo.com.cn/
                                                                                  Announcement on the Declaration of
                                          September 05, 2019
                                                                                  Put-backs for Corporate Bond No. 18
                                                                                  SEG 02

                                          September 23, 2019                      http://www.cninfo.com.cn/


15
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


                                                                   Announcement on 2019 Payment of
                                                                   Interest for Corporate Bond No. 18 SEG
                                                                   02

                                                                   http://www.cninfo.com.cn/

                                                                   Announcement on the Implementation of
                                              September 24, 2019
                                                                   Put-backs for Corporate Bond No. 18
                                                                   SEG 02

                                                                   http://www.cninfo.com.cn
                                                                   Announcement on       the   Progress   of
 The transfer of 100% of the equity of
                                                                   Transfer of 100% of the Equity of
 Shenzhen-Shantou      SEG       Longyan      September 16, 2019
                                                                   Shenzhen-Shantou Cooperation Zone
 completed.
                                                                   SEG Longyan Energy Technology Co.,
                                                                   Ltd. Held by the Holding Subsidiary

 M atters on the reduction of corporate                            http://www.cninfo.com.cn
 holding-shares   by    the     controlling                        Pre-disclosure Announcement on the
                                              September 19, 2019
 shareholder Shenzhen SEG Group Co.,                               Reduction of Corporate Holding-shares
 Ltd.                                                              by the Controlling Shareholder

                                                                   http://www.cninfo.com.cn
                                                                   Announcement on Resolutions of the
                                              September 25, 2019
                                                                   58th Extraordinary Meeting of the 7th
                                                                   Board of Directors

                                                                   http://www.cninfo.com.cn/

                                                                   Announcement on the Election of the
                                              September 27, 2019
                                                                   Staff Representative Supervisor of the
                                                                   8th Board of Supervisors

                                                                   http://www.cninfo.com.cn/
 The changes of the Board of Directors
                                                                   Announcement on the Resolution of the
 and the Board of Supervisors
                                                                   6th Extraordinary General Meeting in
                                                                   2019

                                                                   http://www.cninfo.com.cn/
                                              October 11, 2019     Announcement on the Resolution of the
                                                                   1st Meeting of the 8th Board of Directors

                                                                   http://www.cninfo.com.cn/
                                                                   Announcement on the Resolution of the
                                                                   1st Meeting of the 8th Board of
                                                                   Supervisors

 By the end of the reporting period,
 Nantong SEG Operating Company have                                http://www.cninfo.com.cn
 been involved in 13 housing lease            August 27, 2018      Semi-Annual Report 2019 of Shenzhen
 contract dispute cases and the case                               SEG Co., Ltd.
 amount related is RM B 5,840,000.

16
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


 Nantong SEG Operating Company have
 won all the cases, which have been
 concluded and are in execution.

 By the end of the reporting period,
 Nantong SEG has been involved in 16
 house decoration contract dispute cases
 and the case amount related is RM B
 34,506,300. Among these cases, 13 have                                   http://www.cninfo.com.cn
 been concluded and are in execution.                   August 27, 2018   Semi-Annual Report 2019 of Shenzhen
 Among the remaining 3 cases, one is in                                   SEG Co., Ltd.
 the procedure of retrial, another is in the
 procedure of first instance, and the last
 one is in the procedure of second
 instance.

 For the dispute case over the lease
 contract      of SEG         New        Urban vs.
 Belugaplan           Culture       Development
 (Dalian) Co., Ltd., the People's Court of
 Longgang District, Shenzhen made the
 first    instance      judgment,          that   is,
 Belugaplan           Culture       Development
 (Dalian)      Co.,    Ltd.      shall     pay    the
 liquidated damages of RM B 405,000 to
 SEG New Urban, as well as the overdue                                    http://www.cninfo.com.cn
 fine for management expenses and                       August 27, 2018   Semi-Annual Report 2019 of Shenzhen
 utilities of RM B 8,147.04 in total, while                               SEG Co., Ltd.
 SEG New Urban does not need to refund
 the rental deposit of RM B 255,000. By
 the     end    of     the    reporting p eriod,
 Belugaplan      has      paid      part    of the
 liquidated damages RM B 115,687.04,
 and the remaining RM B 305,000 has not
 been paid. SEG New Urban have applied
 to the court for enforcement and it is
 currently in execution.

 In September 2019, due to engineering
 construction contract disputes, SEG New
 Urban filed a lawsuit in the People's
 Court of Longgang District, Shenzhen,
                                                        /                 /
 requesting China Huashi Enterprises
 Co., Ltd. to compensate for liquidated
 damages and losses of RM B 57,069,600
 in total.


17
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


Progress of share repurchase
□ Applicable √ Not applicable

Progress of reduction of holding-shares through centralized bidding
□ Applicable √ Not applicable




18
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


III. Commitments not fulfilled as of the end of the reporting period by the Company, actual controller, shareholders, affilia tes,
purchasers, or other related parties

√ Applicable □ Not applicable

                                                                                                                                 Commitment    Commitment
     Commitments            Subject       Type                                        Content                                                                    Performance
                                                                                                                                       date        term

Commitment for           Not
share reform             applicable

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

                                                      "After updating and restructuring of SEG Industrial Building, SEG                                     Extended performance
                                                      Economy Building, and SEG Recreation Industry Building, the area of                                   (The Company has
                                                      added part that belongs to SegM aker, SEG Recreation and SEG                                          applied for extension
                                                      Property is 2,855.20 m2. SEG Group undertakes that the use of the                                     of the license for the
                                                      temporary buildings belonged to SegM aker, SEG Recreation and SEG                                     said property and
                                                      Property will be renewed after expiration of the two-year use duration.                               submitted application
Commitments made                                      In case when, due to failure in renewal of use of temporary buildings,                                materials to the
                         Shenzhen
at the time of                        Other           the listed company has any loss or the income during the period from      August 03,                  relevant competent
                         SEG Group                                                                                                            Long-term
restructuring of                      commitment      expiration of the performance commitment period to expiration of the      2016                        authority for approval.
                         Co., Ltd.
assets                                                evaluated income expected period is lower than the expected                                           SEG Group is
                                                      compensation, or the listed company has any loss because the                                          assisting with such
                                                      temporary buildings are required to be dismantled by governmental                                     extension application.
                                                      organs during the period from expiration of the performance                                           The renewal
                                                      commitment period to expiration of the evaluated income expected                                      application is still
                                                      period, SEG Group will compensate the listed company timely and in                                    under approval and the
                                                      full amount according to the following compensation methods:                                          license for renewal is

19
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.
                                                      1. SEG Group has made commitments for the performance of the               not obtained yet.)
                                                      subject company within three years after completion of major assets
                                                      restructuring. Influence of the updating and restructuring project has
                                                      been taken into account in the commitments. 2. The amount of
                                                      compensation for the income that is lower than the expected income
                                                      during the period from expiration of the performance commitment
                                                      period to expiration of the evaluated 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 engage an
                                                      audit firm with security practice qualification recognized by SEG Group
                                                      to provide a formal audit report on the compensation methods for the
                                                      property investment within the compensation scope of the report period
                                                      within four months at the end of each accounting year during the
                                                      compensation period. SEG Group should compensate in cash any
                                                      property investment and compensation items within the compensation
                                                      scope of the report period. Shenzhen SEG should calculate the payable
                                                      compensation amount within 15 business days upon final specific
                                                      review opinions provided by the audit firm, and send a written notice to

20
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.
                                                        SEG Group. Within 30 business days upon receipt of the written notice
                                                        from Shenzhen SEG, SEG Group should pay the compensation in cash
                                                        in full amount.”

Commitment made at
the time of initial    Not
public offerings or    applicable
refinancing

Commitment on          Not
equity incentives      applicable

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

Whether
commitments were       No
fulfilled on time

For commitments        The new property in the reconstruction project of SEG Industrial Building and other two buildings is a temporary building. According to the provisions of the
unfulfilled in the     (Provisional) Measures for the Management of Temporary Buildings of Futian District, Shenzhen, the service duration of this temporary building is from April 21, 2016
commitment period,     to April 20, 2018 can be extended for another year according to the provisions of the Urban and Rural Planning Regulations of Guangdong Province (As of April 20,
specify the reasons    2019). Apart from this, no provisions on temporary buildings of Shenzhen and Futian District permit any extension or term of extension. After expiration of the service
for non-fulfillment    duration (April 20, 2018), the Company has applied for extension and submitted application materials to the relevant competent authority for approval. The extension
and further plans      license is not obtained yet. This matter has never subjected the listed company to losses or caused SEG Group to be liable for compensation.




21
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


Forecasts of Operating Results for 2019

Warning and reasons for forecasts on loss of the cumulative net profit from the beginning of the year to the end of the next reporting
period or significant changes in net profit over the same period last year
□ Applicable       Not applicable


IV. Security investment

 Applicable □ Not applicable
                                                                                                                                Unit: Yuan

                                                                      Cumu
                                                            Chan      lative      Amou
                                                                                           Amou      Profit
                                         Acco                ge in    chang       nt of
                     Short                                                                 nt of      or
                               Initial   unting   Openi      fair      e in       purch                       Closi
                      form                                                                 sales      loss             Acco      Sourc
 Stock     Stock               invest    measu      ng      value      fair       ase in                       ng
                     of the                                                                in the    in the            unting     e of
  type     code                ment      remen     book     of the    value        the                        book
                    securit                                                                curren    report             item     funds
                                cost          t   value     curren    recog       curren                      value
                         y                                                                   t        ing
                                         mode                 t       nized         t
                                                                                           period    period
                                                            period    in the      period
                                                                     equity

 Dome                                                                                                                  Other
                                         M eas
 stic                                                                                                                  equity
                    Youha                ured                                                                                    Self-o
 and       60077                90,40              274,2              24,27                                   298,5    instru
                    o                    by                                         0.00     0.00     0.00                       wned
 foreig    8                     5.00              87.16               3.20                                   60.36    ment
                    Group                fair                                                                                    funds
 n                                                                                                                     invest
                                         value
 stocks                                                                                                                ment

 Dome
                                         M eas                                                                         Long-
 stic
                    Huako       172,5    ured      139,1                                   -8,293    -12,32   135,1    term      Self-o
 and       00006                                                      262.1
                    ng          98,86    by        30,45                            0.00   ,874.3    3,767.   00,81    equity    wned
 foreig    8                                                                  1
                    SEG          8.24    fair       1.09                                         5      99     9.56    invest    funds
 n
                                         value                                                                         ment
 stocks

 Dome                                    M eas                                                                         Other
 stic                                    ureme                                                                         equity
                    SEG        8,275,              13,51                                                      13,51              Self-o
 and       83277                         nt by                                                                         instru
                    Navig       321.4             5,392.                            0.00     0.00     0.00    5,392.             wned
 foreig    0                             cost                                                                          ment
                    ations           3                83                                                         83              funds
 n                                       metho                                                                         invest
 stocks                                  d                                                                             ment

 Other securities
 investment held at the                      --                                                                          --        --
 end of period

 Total                          180,9        --    152,9      0.00    24,53         0.00   -8,293    -12,32   148,9      --        --


22
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


                                64,59               20,13               5.31            ,874.3     3,767.     14,77
                                 4.67                1.08                                    5        99       2.75




V. Entrusted Financing

 Applicable □ Not applicable
                                                                                                                       Unit: RM B 10,000

                             Source of fund under           Amount of entrusted                                   Overdue amount
            Type                                                                     Balance not yet due
                              entrusted financing                financing                                            unrecovered

 Bank financial
                           Self-owned funds                           183,018.10                  73,391.10                           0
 products

 Total                                                                183,018.10                  73,391.10                           0



Information on risky entrusted financing with a significant amount or featuring low security, poor liquidity, and no capital guarantee
 Applicable  Not applicable


Entrusted financial management is not expected to recover the principal or other circumstances that may result in impairment

□ Applicable       Not applicable


VI. Investment of Derived Products

□ Applicable       Not applicable

No investment in derivatives is involved in the reporting period.


VII. Registration Form for Investigations, Communication and Interviews in the Reporting
Period

 Applicable □ Not applicable

             Time                         M eans                             Type                Basic information on investigation

                                                                                             Query the recent business performance
 September 03, 2019             Phone call                      Individual
                                                                                             of the company.

                                                                                             Query the recent business performance
 September 19, 2019             Phone call                      Individual
                                                                                             of the company.


VIII. Illegal External Guarantee

□ Applicable       Not applicable

The Company has no illegal external guarantee in the reporting period.




23
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


IX. Non-operating Capital Occupation on the Listed Company by the Cont rolling
Shareholder and Related Parties

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




24
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.




                                      Chapter 4 Financial Statements

I. Financial Statements

1. Consolidated Balance Sheet Statement

Prepared by: Shenzhen SEG Co., Ltd.
                                                                                                     Unit: Yuan

                   Item                           September 30, 2019             December 31, 2018

 Current assets:

      M onetary funds                                           744,965,034.99               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                                            3,872,700.00

      Accounts receivable                                       112,757,804.08                 54,426,228.11

      Receivable financing

      Prepayment                                                  6,272,695.31                   2,701,718.53

      Premiums receivable

      Reinsurance accounts receivable

      Reinsurance deposit receivable

      Other receivables                                         100,074,948.32                115,570,683.93

         Including: Interest receivable                           1,597,323.05                   1,063,684.93

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

      Redemptory monetary capital
 for resale

      Inventory                                               2,504,954,655.28               2,670,294,017.74

      Contract assets

      Held-for-sale assets

      Non-current assets due within
 one year


25
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


        Other current assets                                 802,688,238.76     468,083,201.09

 Total current assets                                       4,275,586,076.74   5,068,568,666.07

 Non-current assets:

        Loans and advances issued

        Debt investment

        Financial assets available for
 sale

        Other debt investment

        Held-to-maturity investment

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

        Long-term equity investment                          186,238,263.85     172,684,147.74

        Other equity instrument
                                                              34,093,953.19      34,069,679.99
 investment

        Other non-current financial
 assets

        Investment properties                               1,355,864,706.94   1,412,916,851.46

        Fixed assets                                          71,329,563.69      59,351,351.90

        Construction in progress                             116,405,152.28     151,214,015.76

        Productive biological assets

        Oil & gas assets

        Right-of-use assets

        Intangible assets                                       6,979,704.95     32,471,556.32

        Development expenses

        Goodwill                                              11,231,391.49

        Long-term expenses to be
                                                              65,280,831.69      73,769,436.90
 amortized

        Deferred income tax assets                            56,575,030.78      56,931,280.75

        Other non-current assets                              46,884,501.32      47,032,751.31

 Total non-current assets                                   1,969,883,100.17   2,059,441,072.13

 Total assets                                               6,245,469,176.91   7,128,009,738.20

 Current liabilities:

        Short-term borrowing                                 103,500,000.00     520,000,000.00

        Loans from central bank

        Loans from other banks

        Trading financial liabilities



26
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


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

      Derivative financial liabilities

      Notes payable

      Accounts payable                                       280,099,827.39     293,130,435.56

      Advance receipt                                        599,993,914.77     692,811,462.75

      Contract liabilities

      Financial assets sold for
 repurchase

      Deposits from customers and
 interbank

      Acting trading securities

      Acting underwriting securities

      Payroll payable                                         31,185,275.62      44,065,725.59

      Taxes payable                                          160,833,019.89     121,045,597.93

      Other payables                                         564,743,730.63    1,021,673,905.77

         Including: Interest payable                            1,392,172.11       4,943,712.80

                 Dividends payable                              4,614,796.97       4,196,371.01

      Service charges and
 commissions payable

      Reinsurance accounts payable

      Held-for-sale liabilities

      Non-current liabilities due
                                                             143,069,415.58     272,569,415.58
 within one year

      Other current liabilities

 Total current liabilities                                  1,883,425,183.88   2,965,296,543.18

 Non-current liabilities:

      Insurance deposit

      Long-term borrowing                                    903,500,000.00     748,250,000.00

      Bonds payable                                          772,147,044.47     787,752,107.90

         Including: Preferred stock

                 Perpetual capital
 securities

      Lease liabilities

      Long-term payables

27
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


      Long-term payroll payable

      Estimated liabilities                                       56,077,659.53                              90,254,503.10

      Deferred income                                              5,991,529.60                               6,732,529.57

      Deferred income tax liabilities                             79,880,418.57                              79,875,150.30

      Other non-current liabilities                                  134,417.76                                       0.00

 Total non-current liabilities                                 1,817,731,069.93                           1,712,864,290.87

 Total liabilities                                             3,701,156,253.81                           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                                            148,038,034.55                             156,892,820.25

      Less: Treasury shares

      Other comprehensive income                                     104,148.59                                  91,765.66

      Special reserve

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

      General risk provision

      Undistributed profits                                      389,442,332.05                             322,477,846.55

 Total owners' equity attributable to
                                                               1,926,003,299.17                           1,867,881,216.44
 the parent company

      M inority shareholders' equity                             618,309,623.93                             581,967,687.71

 Total owners' equity                                          2,544,312,923.10                           2,449,848,904.15

 Total liabilities and owners' equity                          6,245,469,176.91                           7,128,009,738.20


Chairman of the Board of Directors: Zhang Liang Chief Financial Officer: Yan Dongxia The responsible person of the accounting
institution: Wang Lei




28
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


2. Balance Sheet Statement of the Parent Company

                                                                                                          Unit: Yuan

                     Item                         September 30, 2019                December 31, 2018

 Current assets:

        M onetary funds                                         219,424,284.80                   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

        Accounts receivable                                            163,360.00                       217,360.00

        Receivable financing

        Prepayment                                                     181,291.82

        Other receivables                                       914,421,196.35                  1,098,488,672.67

          Including: Interest receivable

                    Dividends receivable                         28,730,000.00                      2,000,000.00

        Inventory

        Contract assets

        Held-for-sale assets

        Non-current assets due within
 one year

        Other current assets                                    101,737,225.02                      4,172,729.68

 Total current assets                                         1,235,927,357.99                  2,073,987,184.70

 Non-current assets:

        Debt investment

        Financial assets available for
 sale

        Other debt investment

        Held-to-maturity investment

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

        Long-term equity investment                           1,387,682,637.01                  1,326,039,288.79

        Other equity instrument
                                                                 33,515,392.83                    33,515,392.83
 investment

        Other non-current financial


29
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


 assets

      Investment properties                                  244,953,194.49     252,842,527.62

      Fixed assets                                            18,022,003.16      17,786,925.84

      Construction in progress

      Productive biological assets

      Oil & gas assets

      Right-of-use assets

      Intangible assets                                         1,368,226.88       1,671,913.78

      Development expenses

      Goodwill

      Long-term expenses to be
                                                                7,396,045.54       9,404,881.96
 amortized

      Deferred income tax assets                                1,317,682.44       1,673,932.41

      Other non-current assets                                                       39,560.00

 Total non-current assets                                   1,703,255,182.35   1,651,974,423.23

 Total assets                                               2,939,182,540.34   3,725,961,607.93

 Current liabilities:

      Short-term borrowing                                   100,000,000.00     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

      Accounts payable                                           206,374.11         206,374.11

      Advance receipt                                         19,449,689.07      22,491,215.88

      Contract liabilities

      Payroll payable                                           3,305,015.13       5,143,700.56

      Taxes payable                                           11,910,362.92        4,471,684.00

      Other payables                                          70,754,326.48     439,491,749.59

          Including: Interest payable                                              1,578,179.07

                 Dividends payable

      Held-for-sale liabilities

      Non-current liabilities due
 within one year



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Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


      Other current liabilities

 Total current liabilities                                   205,625,767.71     991,804,724.14

 Non-current liabilities:

      Long-term borrowing

      Bonds payable                                          772,147,044.47     787,752,107.90

         Including: Preferred stock

                     Perpetual capital
 securities

      Lease liabilities

      Long-term payables

      Long-term payroll payable

      Estimated liabilities

      Deferred income                                           5,167,529.60       6,592,529.57

      Deferred income tax liabilities

      Other non-current liabilities

 Total non-current liabilities                               777,314,574.07     794,344,637.47

 Total liabilities                                           982,940,341.78    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                                        222,561,161.66     231,415,947.36

      Less: Treasury shares

      Other comprehensive income                                     206.21              -55.90

      Special reserve

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

      Undistributed profits                                  345,262,046.71     319,977,570.88

 Total owners' equity                                       1,956,242,198.56   1,939,812,246.32

 Total liabilities and owners' equity                       2,939,182,540.34   3,725,961,607.93




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Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


3. Consolidated Profit Statement in Current Reporting Period

                                                                                                                     Unit: Yuan

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

 I. Total operating income                                          348,105,199.21                            561,704,545.25

      Including: Operating income                                   348,105,199.21                            561,704,545.25

              Interest income                                                                                            0.00

              Earned premiums                                                                                            0.00

              Service charges and
                                                                                                                         0.00
 commissions income

 II. Total operating cost                                           299,828,896.42                            461,817,703.47

      Including: Operating cost                                     233,255,315.85                            385,280,407.90

              Interest expenses

              Service charges and
 commissions expenses

              Surrender value

              Net compensation
 pay-outs

              Net insurance deposit
 accrued

              Insurance dividends

              Reinsurance expenses

              Operating tax and
                                                                       7,957,446.65                            18,760,506.17
 surcharges

              Sale expenses                                            6,352,532.01                             9,863,748.78

              M anagement expenses                                   25,084,118.00                             30,304,372.95

              R&D expenses                                             2,054,425.95                                      0.00

              Financial expenses                                     25,125,057.96                             17,608,667.67

                 Including: Interest
                                                                     26,678,378.39                             56,338,849.11
 expenses

                           Interest income                              -924,984.27                            -4,428,143.40

      Add: Other income                                                2,209,604.72

            Income from investment
                                                                     18,067,431.48                                693,535.91
 (enter "-" for loss)

            Including: Income from
 investment in associates and joint                                   -1,864,367.52                            -4,808,467.81
 ventures


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                  Income from
 derecognition of financial assets at
 amortized cost

            Income from exchange (enter
 "-" for loss)

            Income from net exposure
 hedge (enter "-" for loss)

            Income from changes in fair
 value (enter "-" for loss)

            Credit impairment loss (enter
 "-" for loss)

            Asset impairment loss (enter
                                                                -2,400.00
 "-" for loss)

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

 III. Operating profit (enter "-" for loss)                 68,550,938.99   100,580,377.69

       Add: Non-operating income                             1,560,343.79     2,428,758.29

       Less: Non-operating expenses                           -109,565.49     1,797,197.37

 IV Total profit (enter "-" for total loss)                 70,220,848.27   101,211,938.61

       Less: Income tax                                     23,143,005.22    32,529,740.36

 V Net profit (enter "-" for net loss)                      47,077,843.05    68,682,198.25

     (I) Classification by going concern

       1. Net profit from continuing
                                                            47,077,843.05   205,277,474.20
 operations (enter "-" for net loss)

       2. Net profit from discontinuing
                                                                             -6,057,464.41
 operations (enter "-" for net loss)

     (II) Classification by ownership

       1. Net profit attributable to owners
                                                            26,970,095.87    40,399,673.95
 of the parent company

       2. Profit and loss of minority
                                                            20,107,747.18    28,282,524.30
 shareholders

 VI. Net of tax of other comprehensive
                                                               -18,431.74        -1,702.10
 income

     Total owners' net of tax of other
 comprehensive income attributable to                          -12,195.56       -20,106.43
 the parent company

       1. Other comprehensive income
 not to be reclassified into profit and


33
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


 loss

              (1) Changes in net
 liabilities or net assets of the
 re-measured defined benefit plan

              (2) Shares of the investee
 of other comprehensive income not to
 be reclassified into profit and loss
 under the equity method

              3. Changes in fair value of
 other equity instrument investment

              4. Changes in fair value of
 corporate credit risks

              (5) Others

        2. Other comprehensive income to
                                                            -12,195.56   -20,106.43
 be reclassified into profit and loss

              (1) Other comprehensive
 income to be reclassified into profit                          -33.83       25.45
 and loss under the equity method

              (2) Changes in fair value
 of other debt investment

              (3) Profit and loss from
 changes in fair value of the                               -12,161.73   -20,131.88
 available-for-sale financial assets

              (4) Amount of financial
 assets reclassified into other
 comprehensive income

              (5) Profit or loss from
 reclassification of held-to-maturity
 investments into available-for-sale
 financial assets

              (6) Provision for credit
 impairment of other debt investment

              (7) Cash flow hedge
 reserve

              (8) Foreign currency
 translation differences

              (9) Others

     Net of tax of other comprehensive
                                                             -6,236.18   18,404.33
 income attributable to minority



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 shareholders

 VII. Total comprehensive income                                        47,059,411.31                               68,680,496.15

      Total comprehensive income
 attributable to shareholders of the                                    26,957,900.31                               40,379,567.52
 parent company

      Total comprehensive income
                                                                        20,101,511.00                               28,300,928.63
 attributable to minority shareholders

 VIII. Earnings per share

      1. Basic earnings per share                                              0.0218                                       0.0327

      2. Diluted earnings per share                                            0.0218                                       0.0327

In case of a business combination under common control in the current period, the net profit of the combined party before
combination is RM B      , and the net profit of the combined party in the previous period is RM B   .


Chairman of the Board of Directors: Zhang Liang Chief Financial Officer: Yan Dongxia The responsible person of the accounting
institution: Wang Lei




35
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4. Profit Statement in Current Reporting Period of the Parent Company

                                                                                                                     Unit: Yuan

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

 I. Operating income                                                  17,149,195.34                            17,036,869.30

      Less: Operating cost                                            12,291,048.45                            12,635,598.64

            Operating tax and
                                                                       1,045,869.42                             1,077,632.77
 surcharges

            Sale expenses                                                371,367.28                               216,482.56

            M anagement expenses                                       5,577,940.83                             5,658,227.51

            R&D expenses                                                   3,571.00                                      0.00

            Financial expenses                                         9,093,259.65                             6,502,132.55

              Including: Interest
                                                                      12,651,231.92                            23,002,334.12
 expenses

                        Interest income                               -3,573,688.69                             -8,312,097.89

      Add: Other income                                                  474,999.99

            Income from investment
                                                                       3,962,805.46                            95,833,070.48
 (enter "-" for loss)

            Including: Income from
 investment in associates and joint                                   -4,177,765.06                             -4,808,467.81
 ventures

                  Income from
 derecognition of financial assets at
 amortized cost

            Income from net exposure
 hedge (enter "-" for loss)

            Income from changes in
 fair value (enter "-" for loss)

            Credit impairment loss
 (enter "-" for loss)

            Asset impairment loss
 (enter "-" for loss)

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

 II. Operating profit (enter "-" for loss)                            -6,785,342.84                            86,779,865.75

      Add: Non-operating income                                           11,000.00                             1,570,422.99

      Less: Non-operating expenses                                                                              1,700,000.00



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 III. Total profit (enter "-" for total
                                                             -6,774,342.84   86,650,288.74
 loss)

         Less: Income tax                                    3,878,570.22    -1,546,771.59

 IV Net profit (enter "-" for net loss)                     -10,652,913.06   88,197,060.33

         (I) Net profit from continuing
                                                            -10,652,913.06   88,197,060.33
 operations (enter "-" for net loss)

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

 V Net of tax of other comprehensive
                                                                   228.28          118.39
 income

         1. Other comprehensive income
 not to be reclassified into profit and
 loss

                (1) Changes in net
 liabilities or net assets of the
 re-measured defined benefit plan

                (2) Shares of the investee
 of other comprehensive income not to
 be reclassified into profit and loss
 under the equity method

                3. Changes in fair value
 of other equity instrument investment

                4. Changes in fair value
 of corporate credit risks

                (5) Others

         2. Other comprehensive income
                                                                   228.28          118.39
 to be reclassified into profit and loss

                (1) Other comprehensive
 income to be reclassified into profit                             228.28          118.39
 and loss under the equity method

                (2) Changes in fair value
 of other debt investment

                (3) Profit and loss from
 changes in fair value of the
 available-for-sale financial assets

                (4) Amount of financial
 assets reclassified into other
 comprehensive income



37
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              (5) Profit or loss from
 reclassification of held-to-maturity
 investments into available-for-sale
 financial assets

              (6) Provision for credit
 impairment of other debt investment

              (7) Cash flow hedge
 reserve

              (8) Foreign currency
 translation differences

              (9) Others

 VI. Total comprehensive income                             -10,652,684.78   88,197,178.72

 VII. Earnings per share

      1. Basic earnings per share

      2. Diluted earnings per share




38
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5. Consolidated Profit Statement from Beginning of the Year to the End of the Reporting Period

                                                                                                                     Unit: Yuan

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

 I. Total operating income                                        1,113,596,884.35                          1,451,123,498.84

      Including: Operating income                                 1,113,596,884.35                          1,444,642,633.92

              Interest income                                                                                   6,480,864.92

              Earned premiums

              Service charges and
 commissions income

 II. Total operating cost                                           971,217,497.63                          1,204,911,926.47

      Including: Operating cost                                     734,338,928.62                            994,429,779.15

              Interest expenses

              Service charges and
 commissions expenses

              Surrender value

              Net compensation
 pay-outs

              Net insurance deposit
 accrued

              Insurance dividends

              Reinsurance expenses

              Operating tax and
                                                                     49,262,755.54                             42,196,977.10
 surcharges

              Sale expenses                                          16,989,051.91                             23,051,951.82

              M anagement expenses                                   83,104,695.93                             92,415,176.65

              R&D expenses                                             2,054,425.95                                      0.00

              Financial expenses                                     85,467,639.68                             52,818,041.75

                 Including: Interest
                                                                     92,694,291.94                             56,338,849.11
 expenses

                           Interest income                            -7,226,652.26                            -4,428,143.40

      Add: Other income                                                5,720,879.15                                      0.00

            Income from investment
                                                                     76,745,625.33                             59,390,854.81
 (enter "-" for loss)

            Including: Income from
 investment in associates and joint                                  -12,813,039.54                           -16,716,197.00
 ventures


39
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                  Income from
 derecognition of financial assets at
 amortized cost

            Income from exchange (enter
 "-" for loss)

            Income from net exposure
 hedge (enter "-" for loss)

            Income from changes in fair
 value (enter "-" for loss)

            Credit impairment loss (enter
 "-" for loss)

            Asset impairment loss (enter
                                                                 -7,565.00    -3,362,022.85
 "-" for loss)

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

 III. Operating profit (enter "-" for loss)                 224,838,326.20   302,240,404.33

       Add: Non-operating income                              3,151,415.49     4,942,048.24

       Less: Non-operating expenses                           1,258,085.11    14,951,136.75

 IV Total profit (enter "-" for total loss)                 226,731,656.58   292,231,315.82

       Less: Income tax                                      76,293,559.52    93,011,306.00

 V Net profit (enter "-" for net loss)                      150,438,097.06   199,220,009.82

     (I) Classification by going concern

       1. Net profit from continuing
                                                            150,438,097.06   205,277,474.23
 operations (enter "-" for net loss)

       2. Net profit from discontinuing
                                                                              -6,057,464.41
 operations (enter "-" for net loss)

     (II) Classification by ownership

       1. Net profit attributable to owners
                                                            110,257,647.89   138,066,661.89
 of the parent company

       2. Profit and loss of minority
                                                             40,180,449.17    61,153,347.93
 shareholders

 VI. Net of tax of other comprehensive
                                                                 18,467.01       -56,797.37
 income

     Total owners' net of tax of other
 comprehensive income attributable to                            12,382.93       -37,828.28
 the parent company

       1. Other comprehensive income
 not to be reclassified into p rofit and


40
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


 loss

              (1) Changes in net
 liabilities or net assets of the
 re-measured defined benefit plan

              (2) Shares of the investee
 of other comprehensive income not to
 be reclassified into profit and loss
 under the equity method

              3. Changes in fair value of
 other equity instrument investment

              4. Changes in fair value of
 corporate credit risks

              (5) Others

        2. Other comprehensive income to
                                                            12,382.93   -37,828.28
 be reclassified into profit and loss

              (1) Other comprehensive
 income to be reclassified into profit                      12,382.93
 and loss under the equity method

              (2) Changes in fair value
 of other debt investment

              (3) Profit and loss from
 changes in fair value of the                                           -37,828.28
 available-for-sale financial assets

              (4) Amount of financial
 assets reclassified into other
 comprehensive income

              (5) Profit or loss from
 reclassification of held-to-maturity
 investments into available-for-sale
 financial assets

              (6) Provision for credit
 impairment of other debt investment

              (7) Cash flow hedge
 reserve

              (8) Foreign currency
 translation differences

              (9) Others

     Net of tax of other comprehensive
                                                             6,084.08   -18,969.09
 income attributable to minority



41
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 shareholders

 VII. Total comprehensive income                                     150,456,564.07                               199,163,212.45

      Total comprehensive income
 attributable to shareholders of the                                 110,270,030.82                               138,028,833.61
 parent company

      Total comprehensive income
                                                                       40,186,533.25                                61,134,378.84
 attributable to minority shareholders

 VIII. Earnings per share

      1. Basic earnings per share                                             0.0892                                        0.1117

      2. Diluted earnings per share                                           0.0892                                        0.1117

In case of a business combination under common control in the current period, the net profit of the combined party before
combination is RM B , and the net profit of the combined party in the previous period is RM B .


Chairman of the Board of Directors: Zhang Liang Chief Financial Officer: Yan Dongxia The responsible person of the accounting
institution: Wang Lei




42
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


6. Profit Statement of the Parent Company from Beginning of the Year to the End of the Reporting Period

                                                                                                                     Unit: Yuan

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

 I. Operating income                                                  56,541,409.60                            54,002,637.18

      Less: Operating cost                                            31,899,284.78                            33,720,284.08

            Operating tax and
                                                                       3,259,315.11                             3,512,934.28
 surcharges

            Sale expenses                                                371,367.28                               216,482.56

            M anagement expenses                                      18,557,639.12                            16,232,297.04

            R&D expenses                                                                                                 0.00

            Financial expenses                                        35,096,781.08                            14,837,050.62

              Including: Interest
                                                                      45,997,934.71                            23,002,334.12
 expenses

                        Interest income                              -10,961,502.79                             -8,312,097.89

      Add: Other income                                                3,037,399.97

            Income from investment
                                                                     112,184,519.20                           204,345,458.34
 (enter "-" for loss)

            Including: Income from
 investment in associates and joint                                  -12,883,039.54                           -13,741,197.00
 ventures

                  Income from
 derecognition of financial assets at
 amortized cost

            Income from net exposure
 hedge (enter "-" for loss)

            Income from changes in
 fair value (enter "-" for loss)

            Credit impairment loss
 (enter "-" for loss)

            Asset impairment loss
 (enter "-" for loss)

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

 II. Operating profit (enter "-" for loss)                            82,582,512.40                           189,829,046.94

      Add: Non-operating income                                           38,167.00                             2,772,317.01

      Less: Non-operating expenses                                        41,873.20                             8,874,462.04



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 III. Total profit (enter "-" for total
                                                            82,578,806.20   183,726,901.91
 loss)

         Less: Income tax                                   14,001,167.98    13,902,604.49

 IV Net profit (enter "-" for net loss)                     68,577,638.22   169,824,297.42

         (I) Net profit from continuing
                                                            68,577,638.22   169,824,297.42
 operations (enter "-" for net loss)

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

 V Net of tax of other comprehensive
                                                                  262.11            92.94
 income

         1. Other comprehensive income
 not to be reclassified into profit and
 loss

                (1) Changes in net
 liabilities or net assets of the
 re-measured defined benefit plan

                (2) Shares of the investee
 of other comprehensive income not to
 be reclassified into profit and loss
 under the equity method

                3. Changes in fair value
 of other equity instrument investment

                4. Changes in fair value
 of corporate credit risks

                (5) Others

         2. Other comprehensive income
                                                                  262.11            92.94
 to be reclassified into profit and loss

                (1) Other comprehensive
 income to be reclassified into profit                            262.11            92.94
 and loss under the equity method

                (2) Changes in fair value
 of other debt investment

                (3) Profit and loss from
 changes in fair value of the
 available-for-sale financial assets

                (4) Amount of financial
 assets reclassified into other
 comprehensive income



44
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              (5) Profit or loss from
 reclassification of held-to-maturity
 investments into available-for-sale
 financial assets

              (6) Provision for credit
 impairment of other debt investment

              (7) Cash flow hedge
 reserve

              (8) Foreign currency
 translation differences

              (9) Others

 VI. Total comprehensive income                             68,577,900.33   169,824,390.36

 VII. Earnings per share

      1. Basic earnings per share

      2. Diluted earnings per share




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7. Consolidated Cash Flow Statement from Beginning of the Year to the End of the Reporting Period

                                                                                                                    Unit: Yuan

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

 I. Cash flow from operating activities:

      Cash received from sales of
                                                                 1,055,869,379.49                          1,190,798,262.16
 goods and rendering of services

      Net increase in deposits from
 customers and interbank

      Net increase in loans from
 central bank

      Net increase in borrowing from
 other financial institutions

      Cash received from premiums of
 primary insurance contracts

      Net cash received from
 reinsurance business

      Net increase in deposits from
 policyholders and investment

      Cash received from interest and
                                                                                                               6,311,198.08
 commissions

      Net increase in loans from other
 banks

      Net increase in redemption
 capital

      Net cash received from acting
 trading securities

      Tax refunds                                                                                                246,846.66

      Other cash received related to
                                                                   141,023,349.87                            253,127,937.32
 operating activities

 Subtotal of cash inflow from
                                                                 1,196,892,729.36                          1,450,484,244.22
 operating activities

      Cash paid for goods and service                              376,476,832.61                            565,344,689.47

      Net increase in loans to
                                                                              0.00                           -15,664,988.00
 customers and prepayment

      Net increase in deposits with
 central bank and interbank

      Cash paid for compensation



46
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


 pay-outs of primary insurance
 contracts

         Net increase in lending funds

         Cash paid for interest, service
 charges, and commissions

         Cash paid as insurance dividends

         Cash paid to and on behalf of
                                                             205,963,444.75     195,861,678.08
 employees

         Taxes paid                                          139,323,829.77     264,954,200.49

         Other cash paid related to
                                                             374,111,254.16     351,574,995.06
 operating activities

 Subtotal of cash outflow in operating
                                                            1,095,875,361.29   1,362,070,575.10
 activities

 Net cash flow from operating
                                                             101,017,368.07      88,413,669.12
 activities

 II. Cash flows from investing
 activities:

         Cash received from withdrawal
                                                            1,115,450,000.00   1,395,212,511.69
 of investment

         Cash received from investment
                                                              47,026,015.29      64,918,960.93
 income

         Net cash received from disposal
 of fixed assets, intangible assets and                           42,818.11            1,220.00
 other long-term assets

         Net cash received from disposal
 of subsidiaries and other business                          109,633,298.28     126,699,000.00
 units

         Other cash received related to
                                                                 568,202.77                0.00
 investing activities

 Subtotal of cash inflow from
                                                            1,272,720,334.45   1,586,831,692.62
 investing activities

         Cash paid for purchase and
 construction of fixed assets,
                                                              61,067,813.82      66,254,262.96
 intangible assets and other long-term
 assets

         Cash paid for investment                           1,738,308,340.35   1,633,847,350.55

         Net increase in mort gage loans

         Net cash paid for acquisition of
 subsidiaries and other business units

47
Body of 2019 3rd Quarter Report of Shenzhen SEG Co., Ltd.


      Other cash paid related to
                                                             128,993,042.50
 investing activities

 Subtotal of cash outflow in investing
                                                            1,928,369,196.67   1,700,101,613.51
 activities

 Net cash flow from investing
                                                            -655,648,862.22    -113,269,920.89
 activities

 III. Cash flow from financing
 activities:

      Cash received by absorbing
                                                                        0.00        980,000.00
 investment

      Including: Cash received by
 subsidiaries from investment of                                        0.00        980,000.00
 minority shareholders

      Borrowings received                                    513,500,000.00     979,000,000.00

      Other cash received related to
                                                             237,899,000.00     196,900,800.36
 financing activities

 Subtotal of cash inflow from
                                                             751,399,000.00    1,176,880,800.36
 financing activities

      Cash repayment                                         944,565,815.94     924,664,813.71

      Cash paid for dividend and
                                                             111,029,873.30      95,444,956.60
 profit distribution or interest payment

      Including: Dividends and profit
 paid by subsidiaries to minority                             32,299,129.40      26,262,417.89
 shareholders

      Other cash paid related to
                                                             110,000,023.31     169,669,157.90
 financing activities

 Subtotal of cash outflow in financing
                                                            1,165,595,712.55   1,189,778,928.21
 activities

 Net cash flow from financing
                                                            -414,196,712.55      -12,898,127.85
 activities

 IV Influence of exchange rate
 fluctuation on cash and cash                                        425.02             452.95
 equivalents

 V Net increase in cash and cash
                                                            -968,827,781.68      -37,753,926.67
 equivalents

      Add: Opening balance of cash
                                                            1,713,792,816.67    951,482,605.92
 and cash equivalents

 VI. Closing balance of cash and cash
                                                             744,965,034.99     913,728,679.25
 equivalents


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8. Cash Flow Statement of the Parent Company from Beginning of the Year to the End of the Reporting
Period

                                                                                                                    Unit: Yuan

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

 I. Cash flow from operating activities:

         Cash received from sales of
                                                                    58,515,246.54                             51,123,098.98
 goods and rendering of services

         Tax refunds

         Other cash received related to
                                                                   140,828,104.57                            311,283,263.32
 operating activities

 Subtotal of cash inflow from
                                                                   199,343,351.11                            362,406,362.30
 operating activities

         Cash paid for purchasing goods
                                                                    29,687,838.38                             27,256,444.94
 and receiving services

         Cash paid to and on behalf of
                                                                    23,916,391.23                             19,716,496.24
 employees

         Taxes paid                                                  4,117,810.79                             26,671,624.06

         Other cash paid related to
                                                                    85,334,181.43                            185,871,943.22
 operating activities

 Subtotal of cash outflow in operating
                                                                   143,056,221.83                            259,516,508.46
 activities

 Net cash flow from operating
                                                                    56,287,129.28                            102,889,853.84
 activities

 II. Cash flows from investing
 activities:

         Cash received from withdrawal
                                                                    40,980,000.00                            525,597,700.00
 of investment

         Cash received from investment
                                                                    97,776,783.87                            218,497,996.91
 income

         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                                           0.00                            77,654,200.00
 units

         Other cash received related to
 investing activities

 Subtotal of cash inflow from                                      138,756,783.87                            821,749,896.91

49
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 investing activities

      Cash paid for purchase and
 construction of fixed assets,
                                                                       0.00      114,000.00
 intangible assets and other long-term
 assets

      Cash paid for investment                              549,426,244.34    693,000,000.00

      Net cash paid for acquisition of
 subsidiaries and other business units

      Other cash paid related to
 investing activities

 Subtotal of cash outflow in investing
                                                            549,426,244.34    693,114,000.00
 activities

 Net cash flow from investing
                                                            -410,669,460.47   128,635,896.91
 activities

 III. Cash flow from financing
 activities:

      Cash received by absorbing
 investment

      Borrowings received                                   250,000,000.00    729,000,000.00

      Other cash received related to
                                                            221,441,666.68     46,394,666.68
 financing activities

 Subtotal of cash inflow from
                                                            471,441,666.68    775,394,666.68
 financing activities

      Cash repayment                                        710,000,000.00    530,000,000.00

      Cash paid for dividend and
                                                             58,743,473.04     88,928,233.30
 profit distribution or interest payment

      Other cash paid related to
                                                            100,000,000.00    255,061,667.00
 financing activities

 Subtotal of cash outflow in financing
                                                            868,743,473.04    873,989,900.30
 activities

 Net cash flow from financing
                                                            -397,301,806.36   -98,595,233.62
 activities

 IV Influence of exchange rate
 fluctuation on cash and cash
 equivalents

 V Net increase in cash and cash
                                                            -751,684,137.55   132,930,517.13
 equivalents

      Add: Opening balance of cash
                                                            971,108,422.35    104,463,125.70
 and cash equivalents

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 VI. Closing balance of cash and cash
                                                             219,424,284.80                  237,393,642.83
 equivalents




II. Financial State ments Adjustments

1. Adjustments of items of financial statements as of the beginning of the current year due to
implementation of new standards for financial instruments, new standards for income, or new standards
for lease from 2019

√ Applicable □ Not applicable

Consolidated Balance Sheet Statement
                                                                                                      Unit: Yuan

               Item                 December 31, 2018          January 01, 2019         Adjustments

 Current assets:

      M onetary funds                     1,757,492,816.67           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

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

      Receivable financing

      Prepayment                              2,701,718.53               2,701,718.53

      Premiums receivable

      Reinsurance accounts
 receivable

      Reinsurance deposit
 receivable

      Other receivables                     115,570,683.93             115,570,683.93

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

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

      Redemptory monetary
 capital for resale

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

      Contract assets

      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

      Financial assets
                                             34,069,679.99                     /   34,069,679.99
 available for sale

      Other debt investment

      Held-to-maturity
 investment

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

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

      Other equity
                                                            /     34,069,679.99    34,069,679.99
 instrument investment

      Other non-current
 financial 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
                                            151,214,015.76       151,214,015.76
 progress

      Productive biological
 assets

      Oil & gas assets

      Right-of-use assets

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

      Development

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 expenses

        Goodwill

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

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

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

 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

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

        Derivative financial
 liabilities

        Notes payable

        Accounts payable                    293,130,435.56    293,130,435.56

        Advance receipt                     692,811,462.75    692,811,462.75

        Contract liabilities

        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



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

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

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

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

       Service charges and
 commissions payable

       Reinsurance accounts
 payable

       Held-for-sale
 liabilities

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

       Long-term payables

       Long-term payroll
 payable

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

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

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

       Other non-current
                                                      0.00
 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


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 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
                                                 91,765.66         91,765.66
 income

      Special reserve

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

      General risk provision

      Undistributed profits                 322,477,846.55    152,762,534.98

 Total owners' equity
 attributable to the parent               1,867,881,216.44    152,762,534.98
 company

      M inority shareholders'
                                            581,967,687.71    152,762,534.98
 equity

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

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




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Balance Sheet Statement of the Parent Company
                                                                                                        Unit: Yuan

              Item                 December 31, 2018            January 01, 2019         Adjusted figures

 Current assets:

      M onetary funds                       971,108,422.35             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

      Accounts receivable                         217,360.00                 17,360.00

      Receivable financing

      Prepayment

      Other receivables                   1,098,488,672.67            1,098,488,672.67

          Including: Interest
 receivable

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

      Inventory

      Contract assets

      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

      Financial assets
                                                33,515,392.83                        /           -33,515,392.83
 available for sale

      Other debt investment

      Held-to-maturity
 investment

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


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

       Other equity
                                                               33,515,392.83    33,515,392.83
 instrument investment

       Other non-current
 financial 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

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

       Development
 expenses

       Goodwill

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

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

       Other non-current
                                                 39,560.00         39,560.00
 assets

 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

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

       Derivative financial
 liabilities

       Notes payable



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       Accounts payable                         206,374.11        206,374.11

       Advance receipt                       22,491,215.88     22,491,215.88

       Contract liabilities

       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

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

                     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

       Long-term payables

       Long-term payroll
 payable

       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



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 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
                                                       -55.90             -55.90
 income

      Special reserve

      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'
                                            3,725,961,607.93    3,725,961,607.93
 equity


2. Notes to retrospective adjustments of comparative data of previous periods due to implementation of new
standards for financial instruments or new standards for lease from 2019

□ Applicable          Not applicable


III. Audit Report

Is the 3rd quarter report audited?
□ Yes  No
The 3rd quarter report of the Company has not been audited.




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