Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd. Security code: 000058, 200058 Security name: SHEN SEG, SHEN SEG B Announcement No.:2016-092 Shenzhen SEG Co., Ltd.
2016 Q3 Report
October 2016
Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd. Definition
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|Definition||Description|
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|This Company, the Company||Shenzhen SEG Co., Ltd.|
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|Shenzhen SEG Group Co., Ltd.||Shenzhen SEG Group Co., Ltd.|
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|Huakong SEG||Shenzhen Huakong SEG Co., Ltd.|
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|SEG Baohua||Shenzhen SEG Baohua Enterprise Development Co., Ltd.|
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|Xi'an SEG||Xi’an SEG Electronics Market Co., Ltd.|
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|Suzhou SEG||Suzhou SEG Electronics Market Management Co., Ltd.|
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|Xi'an Hairong SEG||Xi’an Hairong SEG Electronics Market Co., Ltd.|
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|Nanjing SEG||Shenzhen SEG Electronics Market Management Co., Ltd.|
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|Nantong SEG||Nantong SEG Times Square Management Co., Ltd.|
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|Changsha SEG||Changsha SEG Development Co., Ltd.|
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|SEG Industry||Shenzhen SEG Industrial Investment Co., Ltd.|
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|SEG E-Commerce||Shenzhen SEG E-Commerce Co., Ltd.|
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|SEG Credit||Shenzhen SEG Credit Co., Ltd.|
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|Wuxi SEG||Wuxi SEG Electronics Market Co., Ltd|
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|Nanning SEG||Nanning SEG Digital Plaza Management Co., Ltd.|
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||refers|SegMaker is a wholly-owned subsidiary of SEG, a subsidiary with 100%|
|SegMaker|||
||to|share capital held by SEG Group|
||refers|State-owned Assets Supervision and Administration Commission of|
|Shenzhen SASAC|||
||to|Shenzhen Municipality|
||refers|Shenzhen Securities Regulatory Bureau of China Securities Regulatory|
|Shenzhen Securities Regulatory Bureau|||
||to|Commission|
|Unless otherwise specified, the amount referred|refers||
|||Amount in RMB|
|to in the report|to||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd. Chapter 1 Important Notice
The Board of Directors, the Board of Supervisors, the directors, the supervisors, and the senior executives guarantee that the quarterly report is authentic, accurate, and complete and has no false records, misleading statements or major omissions, and that they undertake joint and several legal liabilities.
All the directors have attended the meeting of the Board of Directors and reviewed the quarterly report.
Chairman of the Board Wang Li, the Chief Financial Officer Liu Zhijun and the responsible person of the accounting institution (accountant in charge) Ying Huadong hereby declare that the Financial Statements enclosed in this quarterly report are true, accurate and complete.
Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd. Chapter 2 Main Financial Data and Shareholder Change
I. Major accounting data and financial indexes
Are retrospective adjustments made to previous financial statements due to accounting policy changes or accounting errors?□ Yes√ No
||||||||
|-|-|-|-|-|-|-|
||Period-end amount||Year-end amount||YoY increase/decrease||
|Total assets (Yuan)|2,509,809,592.5||5 2,614,660,524.37||-4.01%||
|Net assets attributable to|1,493,688,009.3||3 1,475,126,229.16||||
|shareholders of the listed company|||||1.26%||
|(Yuan)|||||||
|||||Amount from the|||
|||||beginning of the year||YoY increase/decrease|
||The report period|YoY increase/decrease|||||
|||||to the end of the report||up to the report period|
|||||period|||
|Operating revenue (Yuan)|139,478,273.85|-28.39%||502,151,510.70||-11.80%|
|Net profit attributable to|15,422,191.47|||42,278,461.89|||
|shareholders of the listed company||111.83%||||0.22%|
|(Yuan)|||||||
|Net profit attributable to|||||||
|shareholders of the listed company|||||||
||15,912,414.05|134.62%||44,608,873.52||7.54%|
|after deduction of non-recurring|||||||
|gains and losses (Yuan)|||||||
|Net cash flow arising from||||-83,427,796.65|||
||-|-||||-|
|operating activities (Yuan)|||||||
|Basic EPS (Yuan/Share)|0.0197|107.37%||0.054|||
|Diluted EPS (Yuan/Share)|0.0197|107.37%||0.054|||
|Weighted average ROE|1.04%|0.11%||2.85%||-2.53%|

 Unit: Yuan
||||
|-|-|-|
||Amount from the beginning||
|Item|of the year to the end of the|Remarks|
||report period||
|Gains and losses on disposal of non-current assets (including the|||
||-10,988.73|Loss from disposal of fixed assets|
|write-off of assets depreciation reserves)|||
|||Mainly the special reward (RMB|
|Government subsidy included in the current profit and loss|||
|||50,000) for the development of|
|(closely related to enterprise business, excluding quoted or|119,322.06||
|||the service industry from Suzhou|
|quantitative government subsidy according to national uniform|||
|||Wujiang Finance Bureau and the|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
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|-|-|-|
|standard)||support fund (RMB 53,400) for|
|||SEG e-commerce trading|
|||platform of Shenzhen Economy|
|||and Trade Information|
|||Committee.|
|||Additional accrual of Nanning|
|||SEG litigation compensation|
|Other non-operating income and expenses except the|||
||-3,073,169.32|expense is RMB 3,700,000.|
|above-mentioned items|||
|||Others are income from merchant|
|||compensation.|
|Less: Amount of affected income tax|-833,740.10||
|Amount of influence of minority shareholders’ equity (after|||
||199,315.74||
|tax)|||
|Total|-2,330,411.63|-|

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 report period, it does not happen that the company defines the non-recurring profit and loss items defined or listed by Interpretive Bulletin No. 1 on Information Disclosure by Companies Publicly Issuing Securities— Non-recurring Gains and Losses as recurring profit and loss items.
II. Total number of shareholders and shares held by top 10 shareholders at the end of the report period
1. Total number of ordinary shareholders and preferred shareholders restored with voting rights and shares held by top 10 shareholders
Unit: Share
|||||||||
|-|-|-|-|-|-|-|-|
|Total number of ordinary||||Total number of preferred||||
|shareholders at the end of the report||81,310||shareholders restored with the||0||
|period||||voting rights (if any)||||
|Shares held by top 10 shareholders||||||||
||||||Quantity of|Information on pledged or frozen||
|Name of|Nature of|Proportion of||||||
||||Shares held||restricted shares|shares||
|shareholder|shareholder|shareholding||||||
||||||held|Share status|Quantity|
|Shenzhen SEGGroup Co., Ltd.|State-owned legalperson|30.24%|237,359,666||0|||
|Liu Guocheng|Domestic naturalperson|0.85%|6,739,002||0|||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
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|Zhang Jiao|Domestic naturalperson|0.52%|4,046,989|0|||
|Liu Guohong|Domestic naturalperson|0.42%|3,300,258|0|||
|Gong Qianhua|Overseas naturalperson|0.37%|2,940,000|0|||
|Zeng Ying|Domestic naturalperson|0.29%|2,300,000|0|||
|China SecuritiesFinanceCorporationLimited|Domesticnon-state-ownedlegal person|0.29%|2,271,900|0|||
|NORGES BANK|Foreign legalperson|0.24%|1,890,226|0|||
|Wei Jieren|Domestic naturalperson|0.18%|1,412,066|0|||
|Hu Chunwan|Domestic naturalperson|0.17%|1,385,200|0|||
|Information on top 10 shareholders of non-restricted shares|||||||
||||||Type of share||
|Name of shareholder||Quantity of unrestricted ordinary shares held|||||
||||||Type of share|Quantity|
|Shenzhen SEG Group Co., Ltd.||237,359,666|||RMB ordinary||
|||||||237,359,666|
||||||shares||
|Liu Guocheng||6,739,002|||Domestically||
||||||listed foreign|6,739,002|
||||||shares||
|Zhang Jiao||4,046,989|||RMB ordinary||
|||||||4,046,989|
||||||shares||
|Liu Guohong||3,300,258|||Domestically||
||||||listed foreign|3,300,258|
||||||shares||
|Gong Qianhua||2,940,000|||Domestically||
||||||listed foreign|2,940,000|
||||||shares||
|Zeng Ying||2,300,000|||Domestically||
||||||listed foreign|2,300,000|
||||||shares||
|China Securities FinanceCorporation Limited||2,271,900|||RMB ordinary||
|||||||2,271,900|
||||||shares||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
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|-|-|-|-|
|NORGES BANK|1,890,226|Domestically||
|||listed foreign|1,890,226|
|||shares||
|Wei Jieren|1,412,066|Domestically||
|||listed foreign|1,412,066|
|||shares||
|Hu Chunwan|1,385,200|Domestically||
|||listed foreign|1,385,200|
|||shares||
||Shenzhen SEG Group Co., Ltd (hereinafter referred to as "SEG Group") has no associated|||
|Explanations on the association||||
||relationship with other shareholders and is not a person acting in concert with other|||
|relationship or concerted action||||
||shareholders as specified in the Management Methods for Disclosure of Information on|||
|among the above-mentioned||||
||Changes of Shareholding Status of Shareholders of Listed Companies. It is unclear whether|||
|shareholders||||
||other shareholders are persons acting in concert.|||
|Information on top 10 ordinary||||
|shareholders participating in|Zhang Jiao holds 2,847,801 shares in the credit securities account.|||
|securities margin trading (if any)||||

Whether the top ten ordinary shareholders of the Company or top ten ordinary shareholders of non-restricted shares conducted agreed repurchase transactions in the report period?
□ Yes√ No
The top ten ordinary shareholders of the Company or top ten ordinary shareholders of non-restricted shares did not conduct agreed repurchase transactions in the report period.
2. Total number of preferred shareholders and shares held by top 10 preferred shareholders
□ Applicable√ Not applicable
Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd. Chapter 3 Important Matters
I. Main accounting statements of the report period and changes in financial indicators of reasons
√ Applicable□ Not applicable
(I) Balance Sheet Statement
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|-|-|-|-|-|
|Item|Closing balance|Opening balance|Difference|Increase or decrease|
|||||over the previous|
|||||year (%)|
|Notes receivable|100,792.00||100,792.00||
|Accounts receivable|68,751,597.89|98,212,422.87|-29,460,824.98|-30.00%|
|Advances|85,887,752.86|129,044,887.26|-43,157,134.40|-33.44%|
|Other accounts receivable|60,964,997.67|27,352,784.33|33,612,213.34|122.88%|
|Inventory|610,981,171.82|450,809,934.72|160,171,237.10|35.53%|
|Other current assets|190,695,564.93|339,430,419.74|-148,734,854.81|-43.82%|
|Construction in progress|186,583.94|140,810.00|45,773.94|32.51%|
|Other non-current assets|-|5,103,811.14|-5,103,811.14|-100.00%|
|Accounts payable|22,763,090.01|89,908,781.98|-67,145,691.97|-74.68%|
|Payroll payable|7,749,915.62|21,849,134.16|-14,099,218.54|-64.53%|
|Interest payable|698,717.58|516,758.34|181,959.24|35.21%|
|Dividends payable|17,302,998.39|2,218,224.58|15,084,773.81|680.04%|
|Estimated liabilities|-|7,000,000.00|-7,000,000.00|-100.00%|

 1. Notes receivable: increase by RMB 100,000 over the beginning of the period, mainly due to increase in the rent settled by notes of the holding subsidiary Wujiang SEG Market Management Co., Ltd. in the report period.
2. Accounts receivable: decrease by RMB 29.46 million or30% YoY, mainly due to the termination of supply chain business by SEG E-Commerce because the Company is to transfer equity in the report period. 3. Advance payment: decreases by RMB 43.16 million or33.44% YoY, mainly due to the termination of supply chain business by SEG E-Commerce because the Company is to transfer equity and trade business of the holding subsidiary SEG Industry shrinks in the report period.
4. Other receivables: increase by RMB 33.61 million YoY, or122.88% YoY, mainly due to (1) mainly due to the decoration deposit RMB 8.87 million for new outlet at the east gate paid by Mellow Orange Hotel run by the
holding subsidiary SEG Baohua; (2) preliminary security deposit RMB 8.87 million in total for a new project paid
by the headquarters; (3) increase in the current account RMB 10.30 million between the holding subsidiary Wuxi
SEG and Wuxing Xinyuan Construction and Development Co., Ltd.
Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd. 5. Inventory: increases by RMB 160.17 million or35.53% YoY, mainly due to project construction expense of the Company's wholly-owned subsidiary Nantong SEG in the report period.
6. Other current assets: decrease by RMB 148.73 million or43.82% YoY, due to decrease in bank financing amount in the report period.
7. Construction in progress: increases by RMB 50,000 or32.51%, mainly due to new air-conditioner installation project of the holding subsidiary Changsha SEG.
8. Other non-current assets: decrease by RMB 5.1 million or100% YoY, mainly because the prepaid electronics market transformation project fund in the previous year is carried forward to long-term deferred assets as the project is completed in the report period.
9. Accounts payable: decrease by RMB 67.15 million or74.68% YoY, mainly due to the termination of supply chain business by SEG E-Commerce because the Company is to transfer equity.
10. Payroll payable: decreases by RMB 14.10 million or64.53% YoY, mainly because salaries and bonuses accrued in the previous year are paid in the report period.
11. Interest payable: increases by RMB 180,000 or35.21% YoY, due to interest payable agreed in the financing contract Transfer and Repurchase of Specific Assets Earnings entered into between the holding subsidiary SEG Credit and Great Wall Securities.
12. Dividend payable: increases by RMB 15.08 million or680.04%, mainly due to increase in the dividend unpaid by the holding subsidiary SEG Credit to minority shareholders.
13. Estimated liabilities: decrease by RMB 7 million or100% YoY, mainly due to payment of Nanning SEG litigation compensation expense RMB 13 million. The estimated liabilities accrued in the previous year are deducted.
(II) Profit Statement
||||||
|-|-|-|-|-|
|Item|Amount|Amount of the|Difference|Increase or|
||incurred in the|previous period||decrease over the|
||current period|||previous year (%)|
|Interest expenses|465,888.89|4,206,636.86|-3,740,747.97|-88.92%|
|Operating tax and surcharges|12,034,935.82|20,059,179.56|-8,024,243.74|-40.00%|
|Financial cost|3,186,217.90|4,630,265.70|-1,444,047.80|-31.19%|
|Loss from asset impairment|-4,481,512.08|10,015,700.20|-14,497,212.28|-144.74%|
|Investment income|2,401,978.48|9,485,725.11|-7,083,746.63|-74.68%|
|Income from investment in jointventures or associates|-6,482,084.00|-4,366,107.86|-2,115,976.14|-48.46%|
|Non-operating expenses|3,886,657.87|827,995.29|3,058,662.58|369.41%|
|Other comprehensive income|-82,762.10|316,765.26|-399,527.36|-126.13%|

 1. Interest expense: decreases by RMB 3.74 million or88.92% YoY, mainly because the holding subsidiary SEG Credit repaid all bank loans in Q1. The interest expense decreases as loans decrease.
2. Business tax and surtax: decreases by RMB 8.02 million or40% YoY, mainly due to the program of
replacing business tax with value-added tax launched from May 1, 2016. Enterprises that paid the business tax
before pay the value-added tax now, the value-added tax is the tax excluded in price and not included in this item.
3. Financial expense: decreases by RMB 1.44 million or31.19% YoY. In the report period, as short-term
Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd. borrowings of the Company and holding subsidiaries excluding SEG Credit decrease by RMB 48.16 million, the interest expense payable to the bank decreases accordingly.
4. Asset impairment loss: decreases by RMB 14.50 million or144.74% YoY. In the report period, the holding subsidiary SEG Credit performs the impairment test according to the five-grade loan classification, and reverses the partially accrued loan loss provision.
5. Investment income: decreases by RMB 7.08 million or74.68%, mainly due to (1) In the report period, the total capital of the Company decreases, the total bank financing amount decreases, and the financing income decreases. (2) The accumulated loss of Huakong SEG (the Company holds20% shares) amounts to RMB 31.21 million, which is RMB 9.63 million more than that of the previous year (RMB 21.58 million). Accordingly, the investment income of the Company decreases by RMB 1.58 million.
6.Income from investment in associates and joint ventures: decreases by RMB 2.11 million or-48.46% YoY, mainly because the accumulated loss of Huakong SEG (the Company holds20% shares) amounts to RMB 31.21 million, which is RMB 9.63 million more than that of the previous year (RMB 21.58 million). Accordingly, the investment income of the Company decreases by RMB 1.58 million.
7. Non-operating expense: increases by RMB 3.06 million or369.41%, mainly because Nanning SEG lawsuit claim was dismissed by Nanning Xingning District People's Court in the (2015) X. M. Y. C. Zi. No. 1590 Civil Judgment. According to the (2015) X. M. Y. C. Zi. No. 1393 Civil Judgment, the Company paid the litigation compensation expense and overdue fine (RMB 13 million in total). Considering that the Company has accrued the estimated liabilities RMB 7 million for this item and Nanning SEG estimated the rent payable RMB 2.3 million, the remaining compensation RMB 3.7 million is included in this item.
8. Other comprehensive income: decreases by RMB 400,000 YoY, mainly because the value of Friendship Group stocks held by the holding subsidiary SEG Baohua declines.
(III) Cash Flow Statement
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|-|-|-|-|-|
|Item|Amount incurred in|Amount of the previous|Difference|Increase or|
||the current period|period||decrease over the|
|||||previous year (%)|
|Cash received from sales of goods andrendering of services|620,820,444.62|1,090,057,199.43|-469,236,754.81|-43.05%|
|Tax refunds|82,932,677.81|136,078,841.72|-53,146,163.91|-39.06%|
|Other cash received from operatingactivities|164,808,152.37|473,715,102.01|-308,906,949.64|-65.21%|
|Cash paid for goods and service|709,962,609.24|1,172,208,970.95|-462,246,361.71|-39.43%|
|Net increase in loans to customersand advances|-44,885,258.00|20,896,649.47|-65,781,907.47|-314.80%|
|(1) Other cash received fromoperating activities|196,562,398.65|472,106,815.05|-275,544,416.40|-58.36%|
|Cash received from withdrawal ofinvestment|601,902,098.00|1,689,700,000.00|-1,087,797,902.00|-64.38%|
|Cash received from investment income|10,034,062.48|14,402,007.18|-4,367,944.70|-30.33%|
|Net cash received from disposal of fixedassets, intangible assets and other|62,000.00|34,082.50|27,917.50|81.91%|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
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|-|-|-|-|-|
|long-term assets|||||
|Cash paid for purchase and constructionof fixed assets, intangible assets andother long-term assets|7,074,145.94|14,550,969.56|-7,476,823.62|-51.38%|
|Cash paid for investment|493,604,260.00|1,738,300,000.00|-1,244,695,740.00|-71.60%|
|Other cash paid for financingactivities|1,674,692.51|58,656,972.92|-56,982,280.41|-97.14%|

1. Cash received from sales of goods and rendering of services: decreases by RMB 469.24 million or43.05% YoY, mainly due to the termination of supply chain business by SEG E-Commerce because the Company is to transfer equity and trade business the holding subsidiary SEG Industry shrinks in the report period.
2. Tax refunds: decrease by RMB 53.15 million or39.06% YoY, mainly due to the termination of supply chain business by SEG E-Commerce because the Company is to transfer equity in the report period.
3. Other cash received from operating activities: decreases by RMB 308.91 million or65.21% (RMB 469.24 million or43.05%) YoY. Because SEG E-Commerce that the Company is to transfer its equity terminated foreign trade business in the report period, the advance and deposit received decrease.
4. Cash paid for goods and services: decreases by RMB 462.24 million or39.43% YoY, mainly due to the termination of supply chain business by SEG E-Commerce because the Company is to transfer equity and trade business of the holding subsidiary SEG Industry shrinks in the report period.
5. Net increase in loans and advances to customers: decreases by RMB 65.78 million or314.8% YoY, mainly because loans granted by the holding subsidiary SEG Credit decrease and the net increase in loans is negative in the report period while loans rose in the same period of the previous year.
6. Other cash paid for operating activities: decreases by RMB 275.54 million or58.36% YoY. Because SEG E-Commerce that the Company is to transfer its equity terminated foreign trade business in the report period, the advance and deposit received decrease.
7. Cash received from withdrawal of investment: decreases by 1.08780 billion or64.38% YoY, mainly because the Company invests more in the main business and the investment scale of bank financial products decreases.
8. Cash received from withdrawal of investment: decreases by 4.37 million or30.33% YoY, mainly because the Company invests more in the main business and the investment scale of bank financial products decreases over the same period of the previous year.
9. Net cash received from disposal of fixed assets, intangible assets and other long-term assets: increases by RMB 30,000 or81.91% YoY, mainly because the cash received from disposal of obsolete assets increases by RMB 30,000 YoY.
10. Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets: decreases by RMB 7.48 million or51.38% YoY, mainly due to decrease in the market decoration and transformation expense of the holding subsidiary.
11. Cash paid for investment: decreases by 1.2447 billion or71.6% YoY, mainly because the Company invests more in the main business and the investment scale and frequency of bank financial products decrease. 12. Other cash paid for financing activities: decreases by 56.98 million or97.14% YoY, mainly because the holding subsidiary SEG E-Commerce repaid the interbank financing of related parties in the same period of the
previous year while the Company has not incurred such expense in the report period.
Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd. II. Progress of significant events and their impacts and analysis of solutions
√ Applicable□ Not applicable
(I) Major asset restructuring
The Company launched a major asset restructuring program in November 2015, and its stocks (SHEN SEG 000058, SHEN SEG B 200058) were suspended from the early trading on November 4, 2015. During the stock suspension, the Company and related parties actively pushed forward major assets restructuring, and regularly disclosed progress notices. The Company's stocks resumed trading from the morning on February 25, 2016. As of the date of disclosure of the report, the Company has disclosed the major asset restructuring report (see Report on Issuance of Shares and Payment of Cash for Asset Acquisition and Raising of Supporting Funds& Connected Transactions[Draft] disclosed on www.cninfo.com.cn on August 4), and received the Notice of China Securities Regulatory Commission on Primary Feedback Opinion for Review of Administrative Licensing Items (see the Announcement of Receipt of the Notice of China Securities Regulatory Commission on Primary Feedback Opinion for Review of Administrative Licensing Items Concerning the Major Asset Restructuring disclosed by the Company on www.cninfo.com.cn on October 10.) At this stage, the Company and related intermediaries are striving to improve work efficiency and ensure the smooth progress of the project. The Company will promptly perform the information disclosure obligation according to the progress.
According to the disclosed major asset restructuring report, the Company plans to acquire100% equities of SegMaker held by SEG Group,55% equities of SEG Kangle,100% equities of SEG Property Development, and79.02% equities of SEG Property Investment by issuance of shares(86.90%) and payment of cash(13.10%). In order to promote the integrated performance, the Company plans to raise supporting fund of no more than100% of the transaction price of assets to be purchased (or RMB 2 billion) through private placement to no more than 10 specific investors.
After restructuring, based on advantages in the specialized electronics market and commercial real estate business and Huaqiang North industrial cluster, the Company will give full play to the resource allocation function. The Company will build the SEG maker center, SEG international maker product display and promotion center, SEG maker apartment, and maker funds, get deeply involved in the maker ecology industrial chain, facilitating the maker group in basic hardware technologies,R&D and production support, and funding. The Company will also interact with upstream and downstream manufacturers, promote capitalization and industrialization of innovations, and marketization of new technologies and products, and invigorate innovative vitality of the market to support and build a new maker business ecosphere integrating "experimental development+ incubator+ marketing+ supporting services", and promote business development. In addition, the Company will, based on the existing specialized electronics market, combine service advantages of the specialized electronics market and customer resources, make more efforts to expand the maker services, cultural education, smart technology, sports and entertainment, virtual experience, electronic games and financial services, optimize and integrate the business chain system, take consumer experience as the carrier, utilize online and offline channels and resources, and carry out industrial upgrading.
To promote integrated operating of multiple businesses, make use of collaborative effects, and guarantee the business transformation and upgrading of listed companies, the Company's future operating and development strategy will be embodied in "three transformations": a) from a single electronic product transaction platform and commercial real estate platform to a complex business type platform integrating maker ecology, culture and education, intelligent technology, sports and entertainment, virtual experience, gaming games, and financial services, from single commercial platform operation to be involved in production and operation of relevant contents; b) enterprises of the Company running the specialized electronics market will transform from a single
Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd. leasing role to a platform operator and service provider integrating online and offline resources; c) relying on the resource platform of specialized electronics market business and commercial real estate business, the Company will strive to build an international maker platform with SEG characteristics, develop the whole industry chain layout, and continuously expand innovative fields, such as electronic information products, intelligent electronic applications, and supply chain financial services.
(II) Progress in lawsuit by Nanning SEG: In March 2013, Nanning SEG leased the first and second floors in the podium of Nanning Property Plaza located at No. 158, Renmin East Road, Xingning District, Nanning from Nanning Haiqi Real Estate Development Co., Ltd. The property is used as an electronics market. The agreed leasing period is from March 18, 2013 to March 17, 2025. However, because the problem of concentrated water seepage and penetration was still not solved after several times of communication, Nanning SEG brought a lawsuit against Nanning Haiqi at the People's Court of Xingning District. At the same time, Nanning Haiqi brought a lawsuit against Nanning SEG at the ground that Nanning SEG did not pay the rent at the same court. The court merged the two cases into one case and heard the case.
The claims of Nanning SEG have been rejected in the Civil Judgment (X. M. Y. C. Z (2015) No. 1590) issued by the People's Court of Xingning District. According to the Civil Judgment (X. M. Y. C. Z (2015) No. 1393), the Leasing Contract for the Electronics Market Project of Nanning SEG signed and concluded by and among Nanning Haiqi, Nanning SEG, and Shenzhen SEG Co., Ltd. on June 16, 2013 was rescinded, Nanning SEG should pay the rent and the liquidated damages for the overdue payment to Nanning Haiqi, as well as the Nanning Haiqi's lawyer fees, and the case acceptance fees. Considering actual situation, the Company decides now not to institute an appeal.
According to the Enforcement Notice (Gui 0102 Zhi 1057-1 (2016)) issued by the People's Court of Xingning District, Nanning, Guangxi Zhuang Autonomous Region on September 6, 2016, the Company should pay a liquidated damage for the overdue rent from August 31, 2016 to September 6, 2016, RMB 12,998,409 in total. The Company has paid the amount on September 13, 2016 according to the Enforcement Notice.
The Company has accrued RMB 7 million as a predicted debt for this issue in 2015. Nanning SEG has accrued a payable rent of RMB 2.3 million, and the Company has accrued RMB 2.7 million for this issued as a predicted debt in the semi-annual report in 2016. Therefore, the Company has accrued a total of RMB 12 million in previous report periods for predicted debts and payable rent. The influenced amount of the remaining compensation amount on the net profit in the third quarter of the Company is about RMB 1 million. Considering the influenced amount of the lawsuits on the net profit of the Company in 2016 is about RMB 3.7 million, the event will not have major influence on the Company's operating and production. (For details, refer to the semi-annual report disclosed to the media on August 24, 2016.)
(III) The Company received the summon and civil complaint from the People's Court of Xingning District, Nanning on September 26, 2016, which required the Company to appear at the court and respond to lawsuits (Gui 0102 Min Chu[2016] No. 3653, dispute over house leasing contract; and Gui 0102 Min Chu[2016] No. 3654, disputes over property service contract) against the Company on November 2, 2016. The relevant information has been disclosed through media on September 29, 2016.
(IV) On the Ninth Session of the Sixth Board Meeting of the Company on March 28, 2016, the Predicted Items for Daily Operating Associated Transactions in 2016 were approved. According to the resolution, the holding shareholder Shenzhen SEG Group Co., Ltd. should pay RMB 0.2 million for the annual entrustment fee of Shenzhen SEG Communication Market to the Company. Up to the disclosure date of this report, the Company has received the above fee.
Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|||Inquiry Index for the Websites Disclosing|
|Overview of Important Events|Disclosure Date||
|||the Temporary Reports|
|1. Matters concerning major assetrestructuring||Restructuring Report on Issuance of|
|||Shares and Payment of Cash for Asset|
||August 4, 2016|Acquisition and Raising of Supporting|
|||Funds & Connected Transactions (Draft)|
|||disclosed on www.cninfo.com.cn|
|||Announcement on Shenzhen SASAC's|
||August 26, 2016|Approval of the Major Asset Restructuring|
|||Plan disclosed on www.cninfo.com.cn|
|||Announcement on Shenzhen SASAC's|
|||Recordation of the Asset Appraisal Report|
||August 27, 2016||
|||involved in Major Asset Restructuring Plan|
|||disclosed on www.cninfo.com.cn|
|||Announcement on Receipt of the Notice of|
|||China Securities Regulatory Commission|
|||on Acceptance of Administrative Licensing|
||September 14, 2016||
|||Application during Major Asset|
|||Restructuring disclosed on|
|||www.cninfo.com.cn|
|||Announcement of Receipt of the Notice of|
|||China Securities Regulatory Commission|
|||on Primary Feedback Opinion for Review|
||October 10, 2016||
|||of Administrative Licensing Items|
|||Concerning the Major Asset Restructuring|
|||disclosed on www.cninfo.com.cn|
|2. Matters concerning acquisition ofbusiness license of Shenzhen Hongtu SEGInvestment Management Co., Ltd.||Announcement of Acquisition of Business|
|||License of Shenzhen Hongtu SEG|
||September 1, 2016||
|||Investment Management Co., Ltd.|
|||disclosed on www.cninfo.com.cn|
|3. Matters concerning progress of thecooperation between the Company andTaobao (China) Software Co., Ltd.||Announcement of Progress of Strategic|
|||Cooperation between the Company and|
||September 22, 2016||
|||Taobao (China) Software Co., Ltd.|
|||disclosed on www.cninfo.com.cn|
|4. Matters concerning the Company'sreceipt of court summons and civilcomplaint||Announcement of the Company's Receipt of|
||September 29, 2016|Court Summons and Civil Complaint|
|||disclosed on www.cninfo.com.cn|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd. III. Commitments fulfilled in the report period and being fulfilled as of the end of the report period by the Company, shareholders, actual controllers, buyers, directors, supervisors, senior executives, or other related parties
√ Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|||||Commitment|Commitment||
|Commitments|Subject|Type|Content|||Performance|
|||||date|term||
|Commitment for share reform|Not applicable||||||
||||"1. The||||
||||Company||||
||||undertakes||||
||||that as of||||
||||October 31,||||
||||2015,||||
||||controlling||||
||||shareholders||||
||||of Shenzhen||||
||||SEG or other||||
||||related||||
||||persons who||||
||||occupy funds||||
||||of Shenzhen||||
|||Commitment|SEG or the||||
|||on horizontal|subject||||
|Commitments in the Acquisition|Shenzhen|competition,|company due||||
|||||August 3,|||
|Report and the Report of Changes on|SEG Group|related|to||Long-term|Being fulfilled|
|||||2016|||
|Equity|Co., Ltd.|transaction,|non-operating||||
|||and capital|events will||||
|||occupation|repay them||||
||||before the||||
||||shareholders'||||
||||meeting that is||||
||||intended to||||
||||review the||||
||||restructuring||||
||||plan; 2. After||||
||||restructuring,||||
||||the financial||||
||||independence||||
||||of the listed||||
||||companies||||
||||shall be||||
||||guaranteed||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|and no illegal|
|occupation of|
|funds of listed|
|companies|
|will occur any|
|more; 3. The|
|Company will|
|abide by and|
|urge listed|
|companies to|
|abide by|
|relevant laws|
|and|
|administrative|
|regulations|
|such as the|
|Code on|
|Corporate|
|Governance of|
|Listed|
|Companies,|
|the Notice on|
|Regulating the|
|Funds|
|Transfers|
|between|
|Listed|
|Companies|
|and Related|
|Parties and|
|the External|
|Guarantee of|
|Listed|
|Companies,|
|and the Listing|
|Rules of|
|Shenzhen|
|Stock|
|Exchange,|
|regulations,|
|regulatory|
|documents,|
|and Shenzhen|
|Stock|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|Exchange|
|business rules,|
|and improve|
|awareness of|
|compliance; 4.|
|The Company|
|will exercise|
|the rights of|
|shareholders|
|according to|
|law, and will|
|not abuse the|
|rights of|
|shareholders|
|to damage the|
|interests of|
|listed|
|companies|
|and other|
|shareholders;|
|5. The|
|Company will|
|optimize the|
|governance|
|structure of|
|listed|
|companies,|
|improve the|
|internal|
|control|
|system,|
|regulate the|
|operation of|
|the three|
|organs, give|
|full play to|
|functions and|
|supervisory|
|role of|
|independent|
|directors and|
|the Board of|
|Supervisors,|
|and restrict|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|decision-maki|
|ng and|
|operation by|
|controlling|
|shareholders|
|and actual|
|controllers of|
|the Company;|
|(6) The|
|Company will|
|fulfill the|
|obligation of|
|information|
|disclosure|
|strictly in|
|accordance|
|with relevant|
|provisions,|
|actively|
|cooperate with|
|listed|
|companies on|
|information|
|disclosure,|
|timely inform|
|major events|
|incurred or to|
|be incurred,|
|and ensure the|
|authenticity,|
|accuracy,|
|integrity,|
|timeliness and|
|fairness of|
|information|
|disclosure. In|
|case of breach|
|of the|
|foregoing|
|commitments,|
|the Company|
|will bear all|
|losses thus|
|incurred to|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||Shenzhen||||
|||SEG, the||||
|||subject||||
|||company,||||
|||other||||
|||companies,||||
|||enterprises, or||||
|||other||||
|||economic||||
|||organizations||||
|||controlled by||||
|||the||||
|||Company."||||
|||"1. When the||||
|||Company acts||||
|||as the||||
|||controlling||||
|||shareholder of||||
|||Shenzhen||||
|||SEG, the||||
|||Company,||||
|||other||||
|||companies,||||
|||enterprises, or||||
|||other||||
||Commitment|economic||||
||on horizontal|organizations||||
|Shenzhen|competition,|controlled by||||
||||August 3,|||
|SEG Group|related|the Company,||Long-term|Being fulfilled|
||||2016|||
|Co., Ltd.|transaction,|will minimize||||
||and capital|and regulate||||
||occupation|associated||||
|||transactions||||
|||with Shenzhen||||
|||SEG or the||||
|||subject||||
|||company,||||
|||other||||
|||companies,||||
|||enterprises, or||||
|||other||||
|||economic||||
|||organizations||||
|||controlled by||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|the Company.|
|2. When the|
|restructuring|
|is completed,|
|the Company,|
|other|
|companies,|
|enterprises, or|
|other|
|economic|
|organizations|
|controlled by|
|the Company|
|will handle|
|associated|
|transactions|
|with Shenzhen|
|SEG or the|
|subject|
|company that|
|are|
|unavoidable|
|or incurred for|
|reasonable|
|cause at fair|
|and|
|reasonable|
|market price,|
|perform the|
|decision-maki|
|ng procedure|
|for associated|
|transactions|
|according to|
|relevant laws,|
|regulations,|
|and normative|
|documents,|
|fulfill the|
|obligation of|
|information|
|disclosure and|
|handle the|
|approval|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|procedures|
|according to|
|the law, do not|
|use the|
|dominant|
|position of the|
|controlling|
|shareholder to|
|damage the|
|legal rights|
|and interests|
|of Shenzhen|
|SEG and other|
|shareholders.|
|3. The|
|Company,|
|other|
|companies,|
|enterprises, or|
|other|
|economic|
|organizations|
|controlled by|
|the Company|
|will not use|
|the rights of|
|shareholders|
|of the listed|
|company or|
|the actual|
|control ability|
|to manipulate|
|or instruct the|
|listed|
|company or its|
|directors,|
|supervisors|
|and senior|
|executives to|
|have the listed|
|company|
|unfairly|
|provide or|
|accept funds,|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||goods,||||
|||services or||||
|||other assets,||||
|||or engage in||||
|||any acts||||
|||detrimental to||||
|||the interests of||||
|||listed||||
|||companies. In||||
|||case of breach||||
|||of the||||
|||following||||
|||commitments,||||
|||the Company||||
|||will bear all||||
|||losses thus||||
|||incurred to||||
|||Shenzhen||||
|||SEG, the||||
|||subject||||
|||company,||||
|||other||||
|||companies,||||
|||enterprises, or||||
|||other||||
|||economic||||
|||organizations||||
|||controlled by||||
|||the||||
|||Company."||||
|||"1. In the||||
|||restructuring,||||
|||relevant||||
|||assets, such as||||
||Commitment|||||
|||some||||
||on horizontal|||||
|||commercial||||
|Shenzhen|competition,|||||
|||electronics|August 03,|||
|SEG Group|related|||Long-term|Being fulfilled|
|||markets of|2016|||
|Co., Ltd.|transaction,|||||
|||SEG Group||||
||and capital|||||
|||that constitute||||
||occupation|||||
|||horizontal||||
|||competition,||||
|||have not been||||
|||injected into||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|the listed|
|company.|
|SEG Group|
|will trust such|
|assets to|
|Shenzhen|
|SEG or its|
|subsidiaries|
|after the major|
|asset|
|restructuring.|
|Within 5 years|
|after the major|
|asset|
|restructuring,|
|SEG Group|
|will take all|
|necessary|
|measures to|
|solve flaws of|
|such assets,|
|and|
|incorporate|
|the preceding|
|specialized|
|electronics|
|markets that|
|constitute|
|horizontal|
|competition|
|into Shenzhen|
|SEG or|
|transfer them|
|to the third|
|party in a|
|feasible way|
|such as sales|
|based on|
|operating|
|needs of|
|Shenzhen|
|SEG and the|
|completeness|
|of the|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|ownership of|
|such assets. If|
|SEG Group|
|fails to|
|complete the|
|foregoing|
|matters as|
|scheduled,|
|before|
|injecting|
|relevant assets|
|to Shenzhen|
|SEG, SEG|
|Group shall|
|lease them to|
|Shenzhen|
|SEG for direct|
|operation and|
|enjoy the|
|income from|
|such property.|
|The annual|
|rent of|
|Shenzhen|
|SEG is the|
|depreciated|
|value of such|
|property.|
|Profit and loss|
|incurred by|
|leasing of|
|such property|
|assets shall be|
|shared by|
|Shenzhen|
|SEG. The|
|parties shall|
|separately|
|enter into a|
|leasing|
|agreement. 2.|
|Except assets|
|owned and|
|business|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|operated|
|before the|
|validity date|
|of|
|commitment,|
|when acting as|
|a controlling|
|shareholder or|
|actual|
|controller of|
|Shenzhen|
|SEG, in order|
|to guarantee|
|sustainable|
|development|
|of Shenzhen|
|SEG, the|
|Company will|
|exercise|
|supervision|
|and restriction|
|on operating|
|activities of its|
|own and|
|affiliated|
|enterprises|
|under its|
|control, will|
|not establish|
|new or acquire|
|any assets or|
|business same|
|as or similar|
|to its main|
|business|
|within the|
|operation area|
|of Shenzhen|
|SEG, and will|
|not be|
|engaged in|
|any activities|
|that may|
|damage the|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|interests of|
|Shenzhen|
|SEG and other|
|companies|
|and|
|enterprises|
|controlled by|
|Shenzhen|
|SEG, or other|
|economic|
|organizations.|
|If in the future|
|there is any|
|business|
|opportunity|
|same as or|
|similar to|
|other main|
|business|
|within|
|Shenzhen|
|SEG operation|
|area, such|
|opportunity|
|will|
|preferentially|
|be|
|recommended|
|to Shenzhen|
|SEG and other|
|companies|
|and|
|enterprises|
|controlled by|
|Shenzhen|
|SEG, or other|
|economic|
|organizations.|
|However, any|
|of the|
|following|
|cases is an|
|exception: (1)|
|Due to|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|national laws,|
|regulations|
|and policies|
|and other|
|reasons, any|
|commercial|
|properties and|
|real estate|
|development|
|projects|
|appropriated|
|or allocated|
|through|
|oriented|
|protocols by|
|the|
|government to|
|SEG Group|
|and any|
|enterprises|
|invested by it;|
|or (2) when|
|the general|
|conditions of|
|tender,|
|transfer or|
|assignment of|
|specific|
|commercial|
|properties and|
|real estate|
|development|
|projects have|
|specific|
|requirements|
|on the bidder|
|or assignee,|
|Shenzhen|
|SEG is not|
|qualified y but|
|SEG Group is|
|qualified .Co|
|mmercial|
|property and|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|real estate|
|development|
|projects that|
|are same as|
|the main|
|business of|
|Shenzhen|
|SEG or result|
|in horizontal|
|competition|
|subject to the|
|above|
|exclusions|
|may be|
|invested and|
|built by SEG|
|Group at first.|
|If Shenzhen|
|SEG thinks|
|that such|
|assets are|
|eligible to be|
|injected into|
|Shenzhen|
|SEG, upon|
|receipt of the|
|written|
|acquisition|
|notice from|
|Shenzhen|
|SEG, SEG|
|Group will|
|negotiate on|
|acquisition|
|and transfer|
|such projects|
|to Shenzhen|
|SEG. In case|
|of breach of|
|the foregoing|
|commitments,|
|the Company|
|will bear all|
|losses thus|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||incurred to||||
|||Shenzhen||||
|||SEG, the||||
|||subject||||
|||company,||||
|||other||||
|||companies,||||
|||enterprises, or||||
|||other||||
|||economic||||
|||organizations||||
|||controlled by||||
|||the||||
|||Company."||||
|||"1. The||||
|||Company will||||
|||guarantee the||||
|||independence||||
|||of personnel||||
|||of Shenzhen||||
|||SEG and||||
|||subject||||
|||company: (1)||||
|||After||||
|||completion of||||
|||the||||
|||restructuring,||||
|||the labor,||||
|Shenzhen||||||
||Other|personnel and|August 3,|||
|SEG Group||||Long-term|Being fulfilled|
||commitments|compensation|2016|||
|Co., Ltd.||||||
|||management||||
|||of Shenzhen||||
|||SEG are||||
|||independent||||
|||from the||||
|||Company and||||
|||related parties,||||
|||such as other||||
|||companies,||||
|||enterprises, or||||
|||other||||
|||economic||||
|||organizations||||
|||controlled by||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|the Company.|
|(2) After|
|completion of|
|the|
|restructuring,|
|senior|
|executives of|
|Shenzhen|
|SEG and the|
|subject|
|company hold|
|full-time|
|position at|
|Shenzhen|
|SEG and the|
|subject|
|company and|
|receive|
|compensation,|
|and will not|
|assume any|
|duties other|
|than director|
|and supervisor|
|in the|
|Company and|
|related parties,|
|such as other|
|companies,|
|enterprises, or|
|other|
|economic|
|organizations|
|controlled by|
|the Company.|
|(3) After|
|completion of|
|the|
|restructuring,|
|the Company|
|will not|
|interfere with|
|the|
|shareholders'|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|meeting and|
|the Board of|
|Directors'|
|exercise of|
|power in|
|appointment/d|
|ismissal of|
|personnel. 2.|
|The Company|
|will guarantee|
|the|
|independence|
|of organs of|
|Shenzhen|
|SEG and the|
|subject|
|company: (1)|
|After|
|completion of|
|the|
|restructuring,|
|Shenzhen|
|SEG and the|
|subject|
|company will|
|develop a|
|sound|
|corporate|
|governance|
|structure and|
|an|
|independent|
|and complete|
|organizational|
|structure. (2)|
|After|
|completion of|
|the|
|restructuring,|
|the|
|shareholders'|
|meeting, the|
|Board of|
|Directors, and|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|the Board of|
|Supervisors of|
|Shenzhen|
|SEG and the|
|subject|
|company will|
|exercise duties|
|and powers|
|according to|
|laws,|
|regulations|
|and articles of|
|association of|
|Shenzhen|
|SEG and the|
|subject|
|company. 3.|
|The Company|
|will guarantee|
|the|
|independence|
|and|
|completeness|
|of Shenzhen|
|SEG and the|
|subject|
|company: (1)|
|After|
|completion of|
|the|
|restructuring,|
|Shenzhen|
|SEG and the|
|subject|
|company will|
|have|
|independent|
|and complete|
|assets related|
|to production|
|and|
|management.|
|(2) After|
|completion of|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|the|
|restructuring,|
|the site for|
|business|
|operation of|
|Shenzhen|
|SEG and the|
|subject|
|company are|
|independent|
|of the|
|Company and|
|related parties,|
|such as other|
|companies,|
|enterprises, or|
|other|
|economic|
|organizations|
|controlled by|
|the Company.|
|(3) After|
|completion of|
|the|
|restructuring,|
|except normal|
|operational|
|contacts,|
|Shenzhen|
|SEG and the|
|subject|
|company are|
|not involved|
|in the|
|following|
|case: funds or|
|assets are|
|occupied by|
|the Company|
|and related|
|parties, such|
|as other|
|companies,|
|enterprises, or|

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||
|-|
|other|
|economic|
|organizations|
|controlled by|
|the Company.|
|4. The|
|Company will|
|guarantee the|
|business|
|independence|
|of Shenzhen|
|SEG and the|
|subject|
|company: (1)|
|After|
|completion of|
|the|
|restructuring,|
|Shenzhen|
|SEG and the|
|subject|
|company own|
|relevant|
|qualification|
|for|
|independent|
|business|
|operation, and|
|have the|
|independent|
|and|
|sustainable|
|market-oriente|
|d operation|
|capability. (2)|
|Except assets|
|owned and|
|business|
|operated|
|before the|
|validity date|
|of|
|commitment,|
|when acting as|

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|-|
|a controlling|
|shareholder of|
|Shenzhen|
|SEG, in order|
|to guarantee|
|sustainable|
|development|
|of Shenzhen|
|SEG, the|
|Company will|
|exercise|
|supervision|
|and restriction|
|on operating|
|activities of its|
|own and the|
|affiliated|
|enterprises|
|under its|
|control, will|
|not establish|
|new or acquire|
|any assets or|
|businesses|
|same as or|
|similar to its|
|main business|
|within the|
|operation area|
|of Shenzhen|
|SEG, and will|
|also not be|
|engaged in|
|any activities|
|which may|
|damage the|
|interests of|
|Shenzhen|
|SEG and other|
|companies,|
|enterprises, or|
|other|
|economic|
|organizations|

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||
|-|
|controlled by|
|Shenzhen|
|SEG. If in the|
|future there is|
|any business|
|opportunity|
|same as or|
|similar to|
|other main|
|business|
|within|
|Shenzhen|
|SEG operation|
|area, such|
|opportunity|
|will be|
|preferentially|
|recommended|
|to Shenzhen|
|SEG and other|
|companies,|
|enterprises, or|
|other|
|economic|
|organizations|
|controlled by|
|Shenzhen|
|SEG. ① Due|
|to national|
|laws,|
|regulations|
|and policies|
|and other|
|reasons, any|
|commercial|
|properties and|
|real estate|
|development|
|projects|
|appropriated|
|or allocated|
|through|
|oriented|
|protocols by|

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||
|-|
|the|
|government to|
|SEG Group|
|and any|
|enterprises|
|invested by it;|
|or ② When|
|the general|
|conditions of|
|tender,|
|transfer or|
|assignment of|
|specific|
|commercial|
|properties and|
|real estate|
|development|
|projects have|
|specific|
|requirements|
|on the bidder|
|or assignee,|
|Shenzhen|
|SEG is not|
|qualified but|
|SEG Group is|
|qualified.|
|Commercial|
|property and|
|real estate|
|development|
|projects that|
|are same as|
|the main|
|business of|
|Shenzhen|
|SEG or result|
|in horizontal|
|competition|
|subject to the|
|above|
|exclusions|
|may be|
|invested and|

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||
|-|
|built by SEG|
|Group at first.|
|If Shenzhen|
|SEG thinks|
|that such|
|assets are|
|eligible to be|
|injected into|
|Shenzhen|
|SEG, upon|
|receipt of the|
|written|
|acquisition|
|notice from|
|Shenzhen|
|SEG, SEG|
|Group will|
|negotiate on|
|acquisition|
|and transfer|
|such projects|
|to Shenzhen|
|SEG. (3) After|
|completion of|
|the|
|restructuring,|
|the Company|
|and related|
|parties, such|
|as other|
|companies,|
|enterprises, or|
|other|
|economic|
|organizations|
|controlled by|
|the Company|
|will reduce|
|related|
|transactions|
|with Shenzhen|
|SEG and the|
|subject|
|company and|

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||
|-|
|other|
|companies,|
|enterprises, or|
|other|
|economic|
|organizations|
|controlled by|
|them; for any|
|related|
|transactions|
|that are indeed|
|necessary and|
|unavoidable,|
|the Company|
|will handle|
|them at fair|
|price based on|
|the market|
|principle, and|
|fulfill relevant|
|approval|
|procedures|
|and the|
|information|
|disclosure|
|obligation|
|according to|
|provisions of|
|relevant laws,|
|regulations|
|and normative|
|documents. 5.|
|The Company|
|will guarantee|
|the financial|
|independence|
|of Shenzhen|
|SEG and the|
|subject|
|company: (1)|
|After|
|completion of|
|the|
|restructuring,|

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||
|-|
|Shenzhen|
|SEG and the|
|subject|
|company will|
|establish an|
|independent|
|financial|
|department,|
|independent|
|financial|
|accounting|
|system, and|
|standard and|
|independent|
|financial|
|accounting|
|rules. (2) After|
|completion of|
|the|
|restructuring,|
|Shenzhen|
|SEG and the|
|subject|
|company will|
|separately|
|open an|
|account in|
|banks, and do|
|not share|
|accounts with|
|the Company|
|and related|
|parties, such|
|as other|
|companies,|
|enterprises, or|
|other|
|economic|
|organizations|
|controlled by|
|the Company.|
|(3) After|
|completion of|
|the|

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||
|-|
|restructuring,|
|financial|
|personnel of|
|Shenzhen|
|SEG and the|
|subject|
|company will|
|not hold a|
|part-time job|
|in the|
|Company or|
|related parties,|
|such as other|
|companies,|
|enterprises, or|
|other|
|economic|
|organizations|
|controlled by|
|the Company.|
|(4) After|
|completion of|
|the|
|restructuring,|
|Shenzhen|
|SEG and the|
|subject|
|company will|
|independently|
|make financial|
|decisions, and|
|the Company|
|will not|
|interfere with|
|fund usage of|
|Shenzhen|
|SEG and the|
|subject|
|company. (5)|
|After|
|completion of|
|the|
|restructuring,|
|Shenzhen|

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|||||||
|-|-|-|-|-|-|
|||SEG and the||||
|||subject||||
|||company will||||
|||pay taxes||||
|||independently||||
|||according to||||
|||laws. In case||||
|||of breach of||||
|||the foregoing||||
|||commitments,||||
|||the Company||||
|||will bear all||||
|||losses thus||||
|||incurred to||||
|||Shenzhen||||
|||SEG, and the||||
|||subject||||
|||company."||||
|||"(I) Contract||||
|||subjects and||||
|||date of signing||||
|||Shenzhen||||
|||SEG and SEG||||
|||Group signed||||
|||Performance||||
|||Commitment||||
|||and||||
|||Compensation||||
|||Agreement on||||
|||August 3,||||
||Shenzhen|||||
|Commitments made at the time of||2016. (II)|August 3,|||
||SEG Group|||Long-term|Being fulfilled|
|restructuring of major assets||Performance|2016|||
||Co., Ltd.|||||
|||commitment||||
|||period||||
|||3 accounting||||
|||periods||||
|||following the||||
|||completion of||||
|||the transaction||||
|||(including the||||
|||year of||||
|||completion||||
|||and the||||
|||following||||

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||
|-|
|consecutive|
|two|
|accounting|
|periods). If the|
|transaction is|
|completed|
|before|
|December 31,|
|2016|
|(included), the|
|performance|
|commitment|
|period|
|includes 2016,|
|2017, and|
|2018.If the|
|transaction is|
|completed|
|between|
|December 31,|
|2016 and|
|December 31,|
|2017|
|(included), the|
|performance|
|commitment|
|period|
|includes 2017,|
|2018, and|
|2019.After the|
|completion of|
|the|
|transaction,|
|Shenzhen|
|SEG shall hire|
|an accounting|
|firm with the|
|qualification|
|of securities|
|that is|
|recognized by|
|SEG Group|
|within 4|
|months after|

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||
|-|
|the end of|
|each|
|accounting|
|period during|
|the|
|performance|
|commitment|
|period to|
|respectively|
|issue a special|
|audit report|
|and/or an|
|impairment|
|test report|
|(hereinafter|
|referred to as|
|the "special|
|audit report")|
|with respect to|
|the promised|
|net|
|profit/promise|
|d cash flow|
|income/promi|
|sed|
|development|
|profit|
|(hereinafter|
|collectively|
|referred to as|
|"promised|
|performance")|
|related to|
|assets within|
|the transaction|
|compensation|
|scope agreed|
|in the|
|agreement,|
|and recognize|
|the promised|
|performance|
|or impairment|
|of assets|

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||
|-|
|within the|
|transaction|
|compensation|
|scope in each|
|year during|
|the|
|performance|
|commitment|
|period. (III)|
|Performance|
|commitment|
|and|
|performance|
|compensation|
|Underlying|
|assets injected|
|into Shenzhen|
|SEG in this|
|transaction are|
|subject to|
|multiple|
|appraisal|
|methods:|
|100% equities|
|of SegMaker,|
|55% equities|
|of SEG|
|Kangle, and|
|79.02%|
|equities of|
|SEG Property|
|Investment are|
|priced on the|
|basis of|
|appraisal|
|conclusion|
|with the|
|asset-based|
|method, in|
|which|
|property|
|assets are|
|subject to the|
|income|

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||
|-|
|method and|
|market|
|method and|
|real estate|
|development|
|in the|
|long-term|
|equity|
|investment is|
|subject to the|
|hypothetical|
|development|
|method; 100%|
|equities of|
|SEG Property|
|Development|
|and 100%|
|equities of|
|SEG Property|
|Management|
|(a|
|wholly-owned|
|subsidiary of|
|SEG Property|
|Investment)|
|are subject to|
|the income|
|method. (IV)|
|Triggering|
|condition for|
|performance|
|compensation|
|After the|
|completion of|
|the|
|transaction, if|
|assets within|
|the transaction|
|compensation|
|scope as|
|specified in|
|the special|
|audit report|
|are impaired|

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||
|-|
|or fail to|
|achieve the|
|promised|
|performance,|
|SEG Group|
|shall make|
|compensation|
|to Shenzhen|
|SEG as agreed|
|in the|
|agreement.|
|(V)|
|Performance|
|compensation|
|method|
|After the|
|completion of|
|the|
|transaction, if|
|assets within|
|the transaction|
|compensation|
|scope are|
|impaired or|
|fail to achieve|
|the promised|
|performance,|
|SEG Group|
|shall|
|compensate|
|Shenzhen|
|SEG in cash|
|or shares. (VI)|
|Effectiveness|
|and|
|termination of|
|the agreement|
|The|
|agreement is|
|made upon|
|signature and|
|seal by the|
|legal|
|representative|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|or authorized|
|agent of each|
|party. As an|
|integral part of|
|the Asset|
|Purchase|
|Agreement,|
|the agreement|
|shall come|
|into effect|
|from the date|
|of|
|effectiveness|
|of the Asset|
|Purchase|
|Agreement.|
|When the|
|Asset|
|Purchase|
|Agreement is|
|rescinded,|
|terminated, or|
|deemed as|
|invalid, the|
|agreement is|
|also rescinded,|
|terminated, or|
|invalid. (VII)|
|Liability for|
|breach of the|
|agreement|
|Except for in|
|case of force|
|majeure,|
|violation of|
|any terms of|
|the agreement|
|by either party|
|constitutes|
|breach of the|
|agreement.|
|The default|
|party shall|
|compensate|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||for all losses||||
|||arising from||||
|||breach of the||||
|||agreement to||||
|||the||||
|||non-breaching||||
|||party.||||
|||"1. In the||||
|||restructuring,||||
|||relevant||||
|||assets, such as||||
|||some||||
|||commercial||||
|||electronics||||
|||markets of||||
|||SEG Group||||
|||that constitute||||
|||horizontal||||
|||competition,||||
|||have not been||||
|||injected into||||
|||the listed||||
||Commitment|company.||||
||on horizontal|SEG Group||||
|Shenzhen|competition,|will trust such||||
||||August 3,|||
|SEG Group|related|assets to||Long-term|Being fulfilled|
||||2016|||
|Co., Ltd.|transaction,|Shenzhen||||
||and capital|SEG or its||||
||occupation|subsidiaries||||
|||after the major||||
|||asset||||
|||restructuring.||||
|||Within 5 years||||
|||after the major||||
|||asset||||
|||restructuring,||||
|||SEG Group||||
|||will take all||||
|||necessary||||
|||measures to||||
|||solve flaws of||||
|||such assets,||||
|||and||||
|||incorporate||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|the preceding|
|specialized|
|electronics|
|markets that|
|constitute|
|horizontal|
|competition|
|into Shenzhen|
|SEG or|
|transfer them|
|to the third|
|party in a|
|feasible way|
|such as sales|
|based on|
|operating|
|needs of|
|Shenzhen|
|SEG and the|
|completeness|
|of the|
|ownership of|
|such assets. If|
|SEG Group|
|fails to|
|complete the|
|foregoing|
|matters as|
|scheduled,|
|before|
|injecting|
|relevant assets|
|to Shenzhen|
|SEG, SEG|
|Group shall|
|lease them to|
|Shenzhen|
|SEG for direct|
|operation and|
|enjoy the|
|income from|
|such property.|
|The annual|
|rent of|

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||
|-|
|Shenzhen|
|SEG is the|
|depreciated|
|value of such|
|property.|
|Profit and loss|
|incurred by|
|leasing of|
|such property|
|assets shall be|
|shared by|
|Shenzhen|
|SEG. The|
|parties shall|
|separately|
|enter into a|
|leasing|
|agreement. 2.|
|Except assets|
|owned and|
|business|
|operated|
|before the|
|validity date|
|of|
|commitment,|
|when acting as|
|a controlling|
|shareholder or|
|actual|
|controller of|
|Shenzhen|
|SEG, in order|
|to guarantee|
|sustainable|
|development|
|of Shenzhen|
|SEG, the|
|Company will|
|exercise|
|supervision|
|and restriction|
|on operating|
|activities of its|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|own and|
|affiliated|
|enterprises|
|under its|
|control, will|
|not establish|
|new or acquire|
|any assets or|
|business same|
|as or similar|
|to its main|
|business|
|within the|
|operation area|
|of Shenzhen|
|SEG, and will|
|not be|
|engaged in|
|any activities|
|that may|
|damage the|
|interests of|
|Shenzhen|
|SEG and other|
|companies|
|and|
|enterprises|
|controlled by|
|Shenzhen|
|SEG, or other|
|economic|
|organizations.|
|If in the future|
|there is any|
|business|
|opportunity|
|same as or|
|similar to|
|other main|
|business|
|within|
|Shenzhen|
|SEG operation|
|area, such|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|opportunity|
|will|
|preferentially|
|be|
|recommended|
|to Shenzhen|
|SEG and other|
|companies|
|and|
|enterprises|
|controlled by|
|Shenzhen|
|SEG, or other|
|economic|
|organizations.|
|However, any|
|of the|
|following|
|cases is an|
|exception: (1)|
|Due to|
|national laws,|
|regulations|
|and policies|
|and other|
|reasons, any|
|commercial|
|properties and|
|real estate|
|development|
|projects|
|appropriated|
|or allocated|
|through|
|oriented|
|protocols by|
|the|
|government to|
|SEG Group|
|and any|
|enterprises|
|invested by it;|
|or (2) when|
|the general|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|conditions of|
|tender,|
|transfer or|
|assignment of|
|specific|
|commercial|
|properties and|
|real estate|
|development|
|projects have|
|specific|
|requirements|
|on the bidder|
|or assignee,|
|Shenzhen|
|SEG is not|
|qualified y but|
|SEG Group is|
|qualified .Co|
|mmercial|
|property and|
|real estate|
|development|
|projects that|
|are same as|
|the main|
|business of|
|Shenzhen|
|SEG or result|
|in horizontal|
|competition|
|subject to the|
|above|
|exclusions|
|may be|
|invested and|
|built by SEG|
|Group at first.|
|If Shenzhen|
|SEG thinks|
|that such|
|assets are|
|eligible to be|
|injected into|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||Shenzhen||||
|||SEG, upon||||
|||receipt of the||||
|||written||||
|||acquisition||||
|||notice from||||
|||Shenzhen||||
|||SEG, SEG||||
|||Group will||||
|||negotiate on||||
|||acquisition||||
|||and transfer||||
|||such projects||||
|||to Shenzhen||||
|||SEG. In case||||
|||of breach of||||
|||the foregoing||||
|||commitments,||||
|||the Company||||
|||will bear all||||
|||losses thus||||
|||incurred to||||
|||Shenzhen||||
|||SEG, the||||
|||subject||||
|||company,||||
|||other||||
|||companies,||||
|||enterprises, or||||
|||other||||
|||economic||||
|||organizations||||
|||controlled by||||
|||the||||
|||Company."||||
|||"1. When the||||
||Commitment|Company acts||||
||on horizontal|as the||||
|Shenzhen|competition,|controlling||||
||||August 3,|||
|SEG Group|related|shareholder of||Long-term|Being fulfilled|
||||2016|||
|Co., Ltd.|transaction,|Shenzhen||||
||and capital|SEG, the||||
||occupation|Company,||||
|||other||||

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||
|-|
|companies,|
|enterprises, or|
|other|
|economic|
|organizations|
|controlled by|
|the Company,|
|will minimize|
|and regulate|
|associated|
|transactions|
|with Shenzhen|
|SEG or the|
|subject|
|company,|
|other|
|companies,|
|enterprises, or|
|other|
|economic|
|organizations|
|controlled by|
|the Company.|
|2. When the|
|restructuring|
|is completed,|
|the Company,|
|other|
|companies,|
|enterprises, or|
|other|
|economic|
|organizations|
|controlled by|
|the Company|
|will handle|
|associated|
|transactions|
|with Shenzhen|
|SEG or the|
|subject|
|company that|
|are|
|unavoidable|

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||
|-|
|or incurred for|
|reasonable|
|cause at fair|
|and|
|reasonable|
|market price,|
|perform the|
|decision-maki|
|ng procedure|
|for associated|
|transactions|
|according to|
|relevant laws,|
|regulations,|
|and normative|
|documents,|
|fulfill the|
|obligation of|
|information|
|disclosure and|
|handle the|
|approval|
|procedures|
|according to|
|the law, do not|
|use the|
|dominant|
|position of the|
|controlling|
|shareholder to|
|damage the|
|legal rights|
|and interests|
|of Shenzhen|
|SEG and other|
|shareholders.|
|3. The|
|Company,|
|other|
|companies,|
|enterprises, or|
|other|
|economic|
|organizations|

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||
|-|
|controlled by|
|the Company|
|will not use|
|the rights of|
|shareholders|
|of the listed|
|company or|
|the actual|
|control ability|
|to manipulate|
|or instruct the|
|listed|
|company or its|
|directors,|
|supervisors|
|and senior|
|executives to|
|have the listed|
|company|
|unfairly|
|provide or|
|accept funds,|
|goods,|
|services or|
|other assets,|
|or engage in|
|any acts|
|detrimental to|
|the interests of|
|listed|
|companies. In|
|case of breach|
|of the|
|foregoing|
|commitments,|
|the Company|
|will bear all|
|losses thus|
|incurred to|
|Shenzhen|
|SEG, the|
|subject|
|company,|
|other|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||companies,||||
|||enterprises, or||||
|||other||||
|||economic||||
|||organizations||||
|||controlled by||||
|||the||||
|||Company."||||
|||"1. The||||
|||Company||||
|||undertakes||||
|||that as of||||
|||October 31,||||
|||2015,||||
|||controlling||||
|||shareholders||||
|||of Shenzhen||||
|||SEG or other||||
|||related||||
|||persons who||||
|||occupy funds||||
|||of Shenzhen||||
|||SEG or the||||
||Commitment|||||
|||subject||||
||on horizontal|||||
|||company due||||
|Shenzhen|competition,|||||
|||to|August 3,|||
|SEG Group|related|||Long-term|Being fulfilled|
|||non-operating|2016|||
|Co., Ltd.|transaction,|||||
|||events will||||
||and capital|||||
|||repay them||||
||occupation|||||
|||before the||||
|||shareholders'||||
|||meeting that is||||
|||intended to||||
|||review the||||
|||restructuring||||
|||plan; 2. After||||
|||restructuring,||||
|||the financial||||
|||independence||||
|||of the listed||||
|||companies||||
|||shall be||||
|||guaranteed||||
|||and no illegal||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|occupation of|
|funds of listed|
|companies|
|will occur any|
|more; 3. The|
|Company will|
|abide by and|
|urge listed|
|companies to|
|abide by|
|relevant laws|
|and|
|administrative|
|regulations|
|such as the|
|Code on|
|Corporate|
|Governance of|
|Listed|
|Companies,|
|the Notice on|
|Regulating the|
|Funds|
|Transfers|
|between|
|Listed|
|Companies|
|and Related|
|Parties and|
|the External|
|Guarantee of|
|Listed|
|Companies,|
|and the|
|Listing Rules|
|of Shenzhen|
|Stock|
|Exchange,|
|regulations,|
|regulatory|
|documents,|
|and Shenzhen|
|Stock|
|Exchange|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|business rules,|
|and improve|
|awareness of|
|compliance; 4.|
|The Company|
|will exercise|
|the rights of|
|shareholders|
|according to|
|law, and will|
|not abuse the|
|rights of|
|shareholders|
|to damage the|
|interests of|
|listed|
|companies|
|and other|
|shareholders;|
|5. The|
|Company will|
|optimize the|
|governance|
|structure of|
|listed|
|companies,|
|improve the|
|internal|
|control|
|system,|
|regulate the|
|operation of|
|the three|
|organs, give|
|full play to|
|functions and|
|supervisory|
|role of|
|independent|
|directors and|
|the Board of|
|Supervisors,|
|and restrict|
|decision-maki|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|ng and|
|operation by|
|controlling|
|shareholders|
|and actual|
|controllers of|
|the Company;|
|(6) The|
|Company will|
|fulfill the|
|obligation of|
|information|
|disclosure|
|strictly in|
|accordance|
|with relevant|
|provisions,|
|actively|
|cooperate with|
|listed|
|companies on|
|information|
|disclosure,|
|timely inform|
|major events|
|incurred or to|
|be incurred,|
|and ensure the|
|authenticity,|
|accuracy,|
|integrity,|
|timeliness and|
|fairness of|
|information|
|disclosure. In|
|case of breach|
|of the|
|foregoing|
|commitments,|
|the Company|
|will bear all|
|losses thus|
|incurred to|
|Shenzhen|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||SEG, the||||
|||subject||||
|||company,||||
|||other||||
|||companies,||||
|||enterprises, or||||
|||other||||
|||economic||||
|||organizations||||
|||controlled by||||
|||the||||
|||Company."||||
|||"For||||
|||enterprises||||
|||subordinate to||||
|||the subject||||
|||company not||||
|||under property||||
|||operation due||||
|||to problems||||
|||left over by||||
|||history||||
|||(including but||||
|||not limited to||||
|||enterprises||||
|||that are||||
|||revoked of the||||
|Shenzhen||||Before||
||Other|business|August 3,|||
|SEG Group||||completion of|Being fulfilled|
||commitments|license or|2016|||
|Co., Ltd.||||restructuring||
|||discontinue||||
|||operation), the||||
|||Company will||||
|||help and||||
|||propel the||||
|||subject||||
|||company to||||
|||handle||||
|||relevant||||
|||cancellation||||
|||procedures.||||
|||After the||||
|||completion of||||
|||the||||
|||restructuring,||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||if the subject||||
|||company or||||
|||the listed||||
|||company is||||
|||held||||
|||responsible,||||
|||penalized, or||||
|||suffer any||||
|||losses due to||||
|||non-proper||||
|||operation or||||
|||failure in||||
|||handling the||||
|||cancellation||||
|||procedures by||||
|||such||||
|||companies,||||
|||SEG Group||||
|||shall bear the||||
|||legal||||
|||responsibility||||
|||and||||
|||compensate||||
|||the subject||||
|||company or||||
|||the listed||||
|||company in||||
|||full."||||
|||"After||||
|||updating and||||
|||restructuring||||
|||of SEG||||
|||Industry||||
|||Building, SEG||||
|||Economy||||
|Shenzhen||||Before||
||Other|Building, and|August 3,|||
|SEG Group||||completion of|Being fulfilled|
||commitments|SEG Kangle|2016|||
|Co., Ltd.||||restructuring||
|||Industry||||
|||Building, the||||
|||area of added||||
|||part that||||
|||belongs to||||
|||SegMaker,||||
|||SEG Kangle||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|and SEG|
|Property is|
|2,855.20|
|square meters.|
|SEG Group|
|undertakes|
|that the use of|
|the temporary|
|buildings|
|belonged to|
|SegMaker,|
|SEG Kangle|
|and SEG|
|Property will|
|be renewed|
|after|
|expiration of|
|the two-year|
|use duration.|
|In case when,|
|due to failure|
|in renewal of|
|use of|
|temporary|
|buildings, the|
|listed|
|company has|
|any loss or the|
|income during|
|the period|
|from|
|expiration of|
|the|
|performance|
|commitment|
|period to|
|expiration of|
|the evaluated|
|income|
|expected|
|period is|
|lower than the|
|expected|
|compensation,|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|or the listed|
|company has|
|any loss|
|because 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, SEG|
|Group will|
|compensate|
|the listed|
|company|
|timely and in|
|full amount|
|according to|
|the following|
|compensation|
|methods: 1.|
|SEG Group|
|has made|
|commitments|
|for the|
|performance|
|of the subject|
|company|
|within three|
|years after|
|completion of|
|major asset|
|restructuring.|

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||
|-|
|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|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|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|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|buildings in|
|the evaluation|
|reports of the|
|subject|
|companies|
|minuses the|
|allocated|
|investment|
|cost during the|
|operating|
|period and the|
|amount|
|influenced by|
|permanent|
|rent|
|termination|
|predicted in|
|the evaluation|
|report.|
|Shenzhen|
|SEG should|
|employ an|
|auditing|
|agency with|
|security|
|practice|
|qualification|
|recognized by|
|SEG Group to|
|provide a|
|formal|
|auditing 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|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|accounting|
|year during|
|the|
|compensation|
|period. SEG|
|Group should|
|compensate in|
|cash any|
|property|
|investment|
|and|
|compensation|
|items within|
|the|
|compensation|
|scope of the|
|report period.|
|Shenzhen|
|SEG should|
|calculate the|
|payable|
|compensation|
|amount within|
|15 working|
|days upon|
|final specific|
|review|
|opinions|
|provided by|
|the auditing|
|agency, and|
|send a written|
|notice to SEG|
|Group. Within|
|30 working|
|days upon|
|receipt of the|
|written notice|
|from|
|Shenzhen|
|SEG, SEG|
|Group should|
|pay the|
|compensation|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||in cash in full||||
|||amount."||||
|||"1. 100%||||
|||shares of SEG||||
|||Property have||||
|||been entrusted||||
|||to a share||||
|||entrusting||||
|||agency as||||
|||required. Its||||
|||equity form is||||
|||authentic and||||
|||valid, and the||||
|||equity||||
|||structure and||||
|||ownership are||||
|||clear. The||||
|||Company has||||
|||no objection||||
|||to the share||||
|||ownership,||||
|||share quantity,||||
|Shenzhen||||Before||
||Other|and share|August 3,|||
|SEG Group||||completion of|Being fulfilled|
||commitments|holding|2016|||
|Co., Ltd.||||restructuring||
|||percentage of||||
|||SEG Property.||||
|||The Company||||
|||has no||||
|||disputes over||||
|||share||||
|||ownership||||
|||with SEG||||
|||Property and||||
|||other||||
|||shareholders.2||||
|||. In case any||||
|||dispute over||||
|||ownership of||||
|||the 3.85%||||
|||shares of SEG||||
|||Property of||||
|||which||||
|||ownership has||||
|||not been||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||determine as||||
|||of July 26,||||
|||2016 occurs in||||
|||the future, the||||
|||Company||||
|||commits to||||
|||SEG Property||||
|||that the||||
|||Company will||||
|||provide any||||
|||necessary||||
|||assistant to||||
|||SEG Property||||
|||to solve the||||
|||dispute,||||
|||protect SEG||||
|||Property from||||
|||any loss||||
|||caused||||
|||thereby, and||||
|||undertake||||
|||corresponding||||
|||responsibilitie||||
|||s."||||
|||"Commitments||||
|||and||||
|||Declaration||||
|||on the Fact||||
|||That the||||
|||Number of||||
|||Shareholders||||
|||of Shenzhen||||
|Shenzhen||SEG Property||||
|||||Before||
|SEG Property|Other|Investment|August 3,|||
|||||completion of|Being fulfilled|
|Investment|commitments|Co., Ltd. Is|2016|||
|||||restructuring||
|Co., Ltd.||More than||||
|||200. All the||||
|||Shares of the||||
|||company have||||
|||been||||
|||collectively||||
|||entrusted to a||||
|||share||||
|||entrusting||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||agency as||||
|||required. The||||
|||company's||||
|||share form is||||
|||authentic and||||
|||valid, and the||||
|||equity||||
|||structure and||||
|||ownership are||||
|||clear. The||||
|||company has||||
|||no conflicts,||||
|||disputes or||||
|||potential||||
|||disputes over||||
|||major share||||
|||ownership||||
|||with the||||
|||company||||
|||shareholders."||||
|||"1. In case||||
|||when, after||||
|||the||||
|||restructuring,||||
|||the||||
|||land/property||||
|||use should be||||
|||changed based||||
|||on the actual||||
|||operating||||
|||demands of||||
|Shenzhen||||Before||
||Other|the subject|August 3,|||
|SEG Group||||completion of|Being fulfilled|
||commitments|company or|2016|||
|Co., Ltd.||||restructuring||
|||because the||||
|||subject||||
|||company is||||
|||required by||||
|||the relevant||||
|||house||||
|||property||||
|||management||||
|||organ or the||||
|||land||||
|||regulatory||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||department to||||
|||change the||||
|||land/property||||
|||use, SEG||||
|||Group will||||
|||assist the||||
|||subject||||
|||company in||||
|||finishing the||||
|||relevant||||
|||formalities. 2.||||
|||In case when||||
|||the subject||||
|||company||||
|||suffers from||||
|||administrative||||
|||penalty by||||
|||relevant land||||
|||and/or house||||
|||property||||
|||management||||
|||department||||
|||because the||||
|||actual use of||||
|||the||||
|||land/property||||
|||is different||||
|||from those||||
|||recorded in||||
|||the certificate,||||
|||SEG Group||||
|||will||||
|||compensate||||
|||the subject||||
|||company for||||
|||any||||
|||expenditures||||
|||and economic||||
|||loss caused||||
|||thereby."||||
|||"1. Since the||||
|Shenzhen||||Before||
||Other|issuance date|August 3,|||
|SEG Group||||completion of|Being fulfilled|
||commitments|of this|2016|||
|Co., Ltd.||||restructuring||
|||commitment||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|letter, SEG|
|Group will|
|assist|
|SegMaker in|
|restoring for|
|business|
|purpose the|
|part currently|
|functioning as|
|a parking|
|garage on the|
|first floor of|
|the podium of|
|SEG Jingyuan|
|Building|
|within five|
|years. 2. If the|
|restoration|
|work cannot|
|be finished|
|within the|
|above|
|mentioned|
|period of time,|
|SEG Group|
|agrees to|
|process the|
|subject assets|
|as follows: (1)|
|paying in cash|
|the evaluated|
|value of the|
|parking|
|garage and the|
|bank interest|
|of the|
|evaluated|
|value in the|
|same period|
|from the|
|restructuring|
|closing date to|
|the expiration|
|of this|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||commitment||||
|||time; or (2)||||
|||purchasing in||||
|||cash the first||||
|||floor of the||||
|||podium of||||
|||SEG Jingyuan||||
|||Building at a||||
|||price no less||||
|||than the||||
|||evaluated||||
|||value of the||||
|||building||||
|||during this||||
|||restructuring.||||
|||1. The subject||||
|||company is a||||
|||limited||||
|||liability||||
|||company or||||
|||stock-limited||||
|||company||||
|||established||||
|||and validly||||
|||existing||||
|||according to||||
|||law with||||
|||legitimate||||
|Shenzhen||business||||
||Other||August 3,|||
|SEG Group||qualification;||Long-term|Being fulfilled|
||commitments||2016|||
|Co., Ltd.||the subject||||
|||company has||||
|||obtained all||||
|||approvals,||||
|||permission,||||
|||authorization||||
|||and permits||||
|||required for its||||
|||setting up and||||
|||operation of||||
|||business, all||||
|||such||||
|||approvals,||||
|||permission,||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|authorization|
|and permits|
|are valid and|
|there exists no|
|reasons or|
|situations|
|which may|
|cause the|
|above|
|approvals,|
|permission,|
|authorization|
|and permits|
|invalid. 2. The|
|subject|
|company has|
|not any major|
|lawbreaking|
|or irregularity|
|behaviors in|
|production|
|operation, nor|
|any situations|
|where|
|termination is|
|required|
|according to|
|the|
|requirements|
|of relevant|
|laws,|
|regulations,|
|normative|
|documents|
|and Articles of|
|Association.|
|As of the date|
|of issuance of|
|this|
|commitment|
|letter, the|
|subject|
|company has|
|no pending or|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|predictable|
|significant|
|lawsuit,|
|arbitration or|
|administrative|
|penalty with|
|amount of|
|subject of|
|more than one|
|million or|
|which will|
|generate|
|adverse|
|impact on its|
|operation. 3.|
|The subject|
|company will|
|independently|
|and fully|
|fulfill the|
|labor contracts|
|it signed with|
|employees. 4.|
|If the subject|
|company is|
|subject to any|
|recovery of|
|fees or penalty|
|from the|
|relevant|
|competent|
|organization|
|in industrial|
|and|
|commerce,|
|tax, employee|
|salaries, social|
|insurance,|
|housing fund,|
|business|
|qualification|
|or competent|
|authorities due|
|to any facts|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|existing|
|before this|
|restructuring,|
|the Company|
|will fully|
|indemnify the|
|subject|
|company for|
|all fees owned|
|by subject|
|company and|
|assume all|
|losses|
|occurred by|
|subject|
|company and|
|Shenzhen|
|SEG as a|
|result of this.|
|5. The subject|
|company|
|legally|
|possesses the|
|ownership|
|and/or right of|
|usage of office|
|space, office|
|equipment,|
|trademark and|
|other assets as|
|necessary to|
|guarantee|
|normal|
|production|
|operation, has|
|independent|
|and complete|
|assets and|
|business|
|structure, has|
|legal|
|ownership to|
|its main assets|
|with|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|independent,|
|complete and|
|clear|
|indication of|
|ownership. 6.|
|The subject|
|company has|
|not any|
|lawsuit,|
|arbitration,|
|judicial|
|mandatory|
|enforcement|
|and other|
|situations|
|which|
|interferes with|
|the transfer of|
|company|
|ownership,|
|and has not|
|incurred any|
|external|
|guarantee that|
|is against laws|
|and articles of|
|association of|
|the Company.|
|After|
|completion of|
|this|
|restructuring,|
|if any loss is|
|caused to|
|Shenzhen|
|SEG and the|
|subject|
|company due|
|to the|
|Company's|
|breach of the|
|above|
|commitment,|
|the Company|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||agrees to||||
|||assume the||||
|||above||||
|||mentioned||||
|||liability of||||
|||indemnity/co||||
|||mpensation to||||
|||Shenzhen||||
|||SEG, the||||
|||subject||||
|||company.||||
|||"1. The||||
|||Company is a||||
|||company||||
|||limited by||||
|||shares||||
|||established||||
|||and||||
|||effectively||||
|||existing||||
|||according to||||
|||law, and has||||
|||no||||
|||circumstances||||
|||of bankruptcy,||||
|||dissolution,||||
|||liquidation or||||
|Shenzhen|Other||August 3,|||
|||termination||Long-term|Being fulfilled|
|SEG Co., Ltd.|commitments||2016|||
|||according to||||
|||current laws,||||
|||regulations,||||
|||normative||||
|||documents or||||
|||the Articles of||||
|||Association.||||
|||The Company||||
|||has issued||||
|||shares openly||||
|||and been||||
|||listed||||
|||according to||||
|||law. As a||||
|||listed||||
|||company, the||||

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||
|-|
|Company|
|owns the|
|subject|
|qualification|
|of issuing|
|non-publicly|
|issued shares|
|and|
|purchasing|
|assets|
|according to|
|laws,|
|regulations|
|and normative|
|documents of|
|China. 2. The|
|Company has|
|in recent three|
|years|
|complied with|
|the relevant|
|industrial and|
|commercial|
|administration|
|laws and|
|regulations,|
|running|
|enterprises|
|abiding by the|
|law, and has|
|no record of|
|receiving|
|administrative|
|punishments|
|with serious|
|cases due to|
|breach of|
|industrial and|
|commercial|
|administration|
|laws and|
|regulations;|
|the Company|
|does not exist|

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|-|
|any situations|
|requiring|
|termination|
|according to|
|relevant laws,|
|regulations,|
|normative|
|documents|
|and Articles of|
|Association.|
|The Company|
|has not any|
|legal|
|impediments|
|in|
|going-concern|
|. 3. The|
|Company's|
|holding of|
|general|
|meeting,|
|board of|
|directors|
|meeting,|
|board of|
|supervisors|
|meeting,|
|contents of|
|resolutions|
|and their|
|signing in|
|recent three|
|years are|
|legal, effective|
|and consistent|
|with the|
|provisions of|
|relevant laws,|
|regulations,|
|normative|
|documents|
|and articles of|
|association;|
|the Company's|

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|-|
|stockholders'|
|meeting's|
|authorization|
|to board of|
|directors in|
|recent three|
|years are|
|legal, effective|
|and consistent|
|with the|
|provisions of|
|relevant laws,|
|regulations,|
|normative|
|documents|
|and Articles of|
|Association;|
|the Company's|
|major|
|decisions|
|since being|
|listed are|
|legal,|
|compliant|
|with|
|regulations,|
|true and|
|effective. 4.|
|The Company|
|does not exist|
|any situations|
|of receiving|
|administrative|
|penalty or|
|criminal|
|punishment|
|from China|
|Securities|
|Regulatory|
|Commission|
|due to breach|
|of securities|
|laws,|
|administrative|

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|-|
|laws &|
|regulations or|
|rules, or any|
|situations of|
|receiving|
|administrative|
|penalty or|
|criminal|
|punishment|
|with serious|
|cases due to|
|breach of|
|industrial and|
|commercial,|
|tax, land,|
|environmental|
|protection,|
|customs laws,|
|administrative|
|laws or|
|regulations. 5.|
|The Company|
|has not any|
|pending or|
|foreseeable|
|significant|
|lawsuit,|
|arbitration or|
|administrative|
|penalty cases.|
|The|
|Company's|
|directors,|
|supervisors|
|and senior|
|executives|
|have not any|
|pending or|
|foreseeable|
|significant|
|lawsuit,|
|arbitration or|
|administrative|
|penalty cases.|

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|-|
|6. There does|
|not exist any|
|situation of|
|the Company's|
|interests being|
|serious|
|damaged by|
|controlling|
|shareholder or|
|actual|
|controller|
|which has not|
|been|
|eliminated. 7.|
|The Company|
|and its|
|affiliated|
|companies do|
|not exist any|
|situation of|
|illegal|
|external|
|guarantee|
|which has not|
|been|
|eliminated yet.|
|8. The|
|Company's|
|current|
|directors,|
|senior|
|executives|
|have not any|
|situation of|
|receiving|
|administrative|
|penalty from|
|CSRC in|
|recent|
|thirty-six|
|months, or|
|receiving|
|public censure|
|from stock|

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|-|
|exchange|
|during recent|
|twelve|
|months. 9.|
|The Company|
|and its current|
|directors and|
|senior|
|executives|
|have not any|
|situations of|
|being|
|investigated|
|by judicial|
|authorities due|
|to alleged|
|crimes or|
|being|
|investigated|
|by CSRC due|
|to alleged|
|irregularities.|
|10. Before this|
|restructuring,|
|the connected|
|transactions|
|carried out by|
|the Company|
|fulfilled fair|
|policy-making|
|procedure as|
|necessary and|
|are legal and|
|effective. 11.|
|The Company|
|has not any|
|situation of|
|seriously|
|damaging|
|investor's|
|legitimate|
|rights and|
|interests and|
|public|

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|-|
|interests. 12.|
|Restructuring|
|of the|
|Company|
|conforms to|
|substantial|
|conditions for|
|the|
|restructuring|
|of listed|
|companies|
|specified in|
|laws,|
|regulations|
|and normative|
|documents,|
|including but|
|not limited to:|
|(1) the|
|restructuring|
|conforms to|
|national|
|industrial|
|policies and|
|laws and|
|administrative|
|regulations|
|related to|
|environment|
|protection,|
|land|
|management,|
|and|
|anti-monopoly|
|; (2) the|
|restructuring|
|will not make|
|the Company|
|inconsistent|
|with the|
|share-based|
|listing|
|conditions; (3)|
|the pricing of|

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||
|-|
|assets in major|
|asset|
|restructuring|
|is fair, and|
|will not|
|damage rights|
|and interests|
|of the|
|Company and|
|its|
|shareholders;|
|(4) the|
|restructuring|
|can strengthen|
|the Company's|
|operating|
|sustainability,|
|and will not|
|result in any|
|circumstances|
|in which the|
|Company's|
|major assets|
|are cash or has|
|no specific|
|operating|
|businesses|
|after|
|restructuring;|
|(5) the|
|restructuring|
|helps the|
|Company|
|maintain|
|independence|
|of its actual|
|controllers|
|and related|
|persons in|
|terms of|
|business,|
|asset, finance,|
|staff, and|
|organization,|

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|-|
|and conform|
|to relevant|
|regulations by|
|CSRC on|
|independence|
|of listed|
|companies;|
|(6) the|
|restructuring|
|helps the|
|Company|
|maintain a|
|perfect and|
|effective legal|
|person|
|governance|
|structure; (7)|
|the|
|restructuring|
|follows the|
|principle of|
|enhancing the|
|asset quality,|
|financial|
|status, and|
|sustainable|
|profitability of|
|the Company;|
|and (8) the|
|restructuring|
|helps to|
|reduce|
|associated|
|transaction|
|and avoid peer|
|competition|
|for the|
|Company. 13.|
|The Company|
|commits that,|
|after|
|completion of|
|restructuring,|
|the Company|

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|-|
|will continue|
|to maintain its|
|independence|
|of its actual|
|controllers|
|and related|
|persons in|
|terms of|
|business,|
|asset, finance,|
|staff, and|
|organization,|
|and conform|
|to relevant|
|regulations by|
|CSRC on|
|independence|
|of listed|
|companies.|
|14. This|
|restructuring|
|will not cause|
|significant|
|adjustment to|
|the structure|
|of board of|
|directors,|
|board of|
|supervisors,|
|senior|
|executives of|
|the Company,|
|and also will|
|not involve|
|any|
|adjustment in|
|major|
|business|
|decision-maki|
|ng rule &|
|procedure,|
|information|
|disclosure|
|mechanism|

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|-|
|and so on.|
|After|
|completion of|
|this|
|restructuring,|
|the Company|
|will strictly|
|run and|
|continuously|
|improve legal|
|person|
|governance|
|structure|
|according to|
|the|
|requirements|
|of Company|
|Law,|
|Securities|
|Law,|
|Corporate|
|Governance|
|Standards for|
|Listed|
|Companies|
|and other|
|laws,|
|regulations|
|and articles of|
|association.|
|15. The|
|Framework|
|Agreement for|
|Issuance of|
|Shares and|
|Payment of|
|Cash for|
|Assets|
|Acquisition,|
|Agreement for|
|Issuance of|
|Shares and|
|Payment of|
|Cash for|

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||
|-|
|Assets|
|Acquisition,|
|and|
|Agreement for|
|Performance|
|Commitment|
|and|
|Compensation|
|, and its|
|relevant|
|formal|
|transaction|
|agreement|
|signed by the|
|Company with|
|Shenzhen|
|SEG Co., Ltd.|
|as regarding|
|this|
|restructuring|
|are reached by|
|different|
|parties to this|
|transaction of|
|restructuring|
|on a equally|
|basis|
|following fair|
|and|
|reasonable|
|principle;|
|these|
|agreements|
|are attached|
|with precedent|
|conditions and|
|are binding on|
|above parties|
|only after|
|these|
|precedent|
|conditions are|
|fully satisfied;|
|the agreement|

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|-|
|is legal and|
|effective and|
|does not|
|contain any|
|contents|
|inconsistent|
|with the|
|relevant laws,|
|regulations|
|and normative|
|documents.|
|16. The|
|Company|
|undertakes|
|and|
|guarantees|
|that the calling|
|and convening|
|procedure and|
|voting|
|procedure of|
|the board of|
|directors|
|meeting and|
|shareholders'|
|meeting are|
|consistent|
|with the|
|regulations of|
|the relevant|
|laws,|
|regulations,|
|normative|
|documents|
|and Articles of|
|Association,|
|and the|
|contents of|
|resolutions are|
|legal and|
|effective. 17.|
|The final price|
|of this|
|restructuring|

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||
|-|
|will be|
|determined|
|through|
|consultations|
|based on|
|pricing|
|principle|
|commonly|
|determined by|
|all parties in|
|accordance|
|with the|
|appraisal|
|result issued|
|by appraisal|
|agency with|
|qualification|
|of carrying out|
|securities|
|business and|
|evaluated|
|value of the|
|subject asset|
|determined in|
|the evaluation|
|report filed at|
|State-owned|
|Assets|
|Supervision|
|and|
|Administratio|
|n Commission|
|of the People's|
|Government|
|of Shenzhen|
|Municipality,|
|which is the|
|expression of|
|true meaning|
|of various|
|parties. 18.|
|The|
|information|
|disclosure|

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|-|
|made by the|
|Company for|
|this|
|restructuring|
|complies with|
|the regulations|
|of relevant|
|laws,|
|regulations,|
|rules and|
|normative|
|documents,|
|and there|
|exists no|
|contract,|
|agreement or|
|arrangement|
|which shall be|
|disclosed but|
|not disclosed.|
|19. The|
|Company's|
|current|
|directors,|
|supervisors,|
|senior|
|executives and|
|shareholders|
|with more|
|than 5%|
|shareholding|
|and other|
|insiders|
|carried out|
|self-inspection|
|on the sales|
|and purchases|
|of Shenzhen|
|SEG stocks|
|within six|
|months (May|
|04, 2015)|
|prior to the|
|date of trading|

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|-|
|half of this|
|restructuring|
|and issued|
|self-inspection|
|report, except|
|Liu Zhijun,|
|Zheng Dan,|
|Zhu|
|Longqing,|
|Tian Jiliang,|
|Ying Huadong|
|and Xu Ning|
|as disclosed in|
|self-inspection|
|reports who|
|have|
|purchased and|
|sold the|
|Company's|
|stocks, the no|
|other|
|directors,|
|supervisors,|
|senior|
|executives and|
|shareholders|
|have|
|purchased or|
|sold any|
|stocks of|
|Shenzhen|
|SEG, and|
|there exists no|
|situation that|
|the relevant|
|personnel|
|making use of|
|inside|
|information of|
|this|
|restructuring|
|in purchasing|
|and selling|
|stocks of the|

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|-|
|Company|
|during|
|self-inspection|
|period. 20.|
|After|
|completion of|
|this|
|restructuring,|
|the Company|
|will continue|
|to perform|
|necessary|
|connected|
|transaction|
|deliberation|
|procedure|
|according to|
|law,|
|regulations,|
|normative|
|documents|
|and articles of|
|association,|
|the legitimate|
|rights and|
|interests of|
|Shenzhen|
|SEG and the|
|whole|
|shareholders.|
|21. After|
|completion of|
|this|
|restructuring,|
|the holding|
|shareholder of|
|the Company|
|is still|
|Shenzhen|
|SEG Group|
|Co., Ltd., and|
|the actual|
|controller is|
|still|

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|||||||
|-|-|-|-|-|-|
|||State-owned||||
|||Assets||||
|||Supervision||||
|||and||||
|||Administratio||||
|||n Commission||||
|||of the People's||||
|||Government||||
|||of Shenzhen||||
|||Municipality.||||
|||This||||
|||restructuring||||
|||will not lead||||
|||to change of||||
|||controlling||||
|||shareholder||||
|||and actual||||
|||controller of||||
|||the||||
|||Company."||||
|||"1. The||||
|||Company will||||
|||guarantee the||||
|||independence||||
|||of personnel||||
|||of Shenzhen||||
|||SEG and||||
|||subject||||
|||company: (1)||||
|||after||||
|||completion of||||
|Shenzhen||||||
||Other|the|August 3,|||
|SEG Group||||Long-term|Being fulfilled|
||commitments|restructuring,|2016|||
|Co., Ltd.||||||
|||the labor,||||
|||personnel and||||
|||compensation||||
|||management||||
|||of Shenzhen||||
|||SEG are||||
|||independent||||
|||from the||||
|||Company and||||
|||related parties,||||
|||such as other||||

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||
|-|
|companies,|
|enterprises, or|
|other|
|economic|
|organizations|
|controlled by|
|the Company.|
|(2) Guarantee|
|that after|
|completion of|
|this|
|restructuring|
|the senior|
|executives of|
|Shenzhen|
|SEG and the|
|subject|
|company hold|
|full-time|
|position at|
|Shenzhen|
|SEG and the|
|subject|
|company and|
|receive|
|compensation,|
|and will not|
|assume any|
|duties other|
|than director|
|and supervisor|
|in the|
|Company and|
|other|
|companies,|
|enterprises or|
|other|
|economic|
|organizations|
|and other|
|connected|
|parties under|
|control of the|
|Company. (3)|

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||
|-|
|Guarantee not|
|to, after|
|completion of|
|this|
|restructuring,|
|interfere with|
|the|
|shareholders'|
|meeting and|
|board of|
|directors|
|meeting's|
|exercise of|
|power in|
|appointment/d|
|ismissal of|
|personnel. 2.|
|Guarantee the|
|independence|
|of institutions|
|of Shenzhen|
|SEG and|
|subject|
|company (1)|
|guarantee that|
|after|
|completion of|
|this|
|restructuring|
|Shenzhen|
|SEG and|
|subject|
|company will|
|have sound|
|corporate|
|governance|
|structure and|
|independent,|
|complete|
|organization.|
|(2) Guarantee|
|that after|
|completion of|
|this|

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|-|
|restructuring|
|the|
|shareholders'|
|meeting,|
|board of|
|directors|
|meeting and|
|board of|
|supervisors|
|meeting of|
|Shenzhen|
|SEG and|
|subject|
|company will|
|exercise duties|
|and powers|
|according to|
|laws,|
|regulations|
|and Articles of|
|Association of|
|Shenzhen|
|SEG and|
|subject|
|company. 3.|
|The Company|
|will guarantee|
|the|
|independence|
|and|
|completeness|
|of Shenzhen|
|SEG and the|
|subject|
|company: (1)|
|After|
|completion of|
|the|
|restructuring,|
|Shenzhen|
|SEG and the|
|subject|
|company will|
|have|

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|-|
|independent|
|and complete|
|assets related|
|to production|
|and|
|management.|
|(2) Guarantee|
|that after|
|completion of|
|this|
|restructuring|
|the site for|
|business|
|operation of|
|Shenzhen|
|SEG and|
|subject|
|company are|
|independent|
|of the|
|Company and|
|other|
|companies,|
|enterprises or|
|other|
|economic|
|organizations|
|and other|
|connected|
|parties under|
|control of the|
|Company. (3)|
|Except normal|
|operational|
|intercourse,|
|guarantee that|
|after|
|completion of|
|this|
|restructuring|
|Shenzhen|
|SEG and|
|subject|
|company do|

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|-|
|not exist any|
|situation that|
|funds or assets|
|are possessed|
|by the|
|Company and|
|other|
|companies,|
|enterprises or|
|other|
|economic|
|organizations|
|and other|
|connected|
|parties under|
|control of the|
|Company. 4.|
|Guarantee the|
|businesses of|
|Shenzhen|
|SEG and|
|subject|
|company are|
|independent|
|(1) guarantee|
|that after|
|completion of|
|this|
|restructuring|
|Shenzhen|
|SEG and|
|subject|
|company have|
|relevant|
|qualification|
|for|
|independently|
|carrying out|
|operational|
|activities, and|
|possess|
|independent,|
|sustainable|
|market-oriente|

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|-|
|d operational|
|capability. (2)|
|Except the|
|assets owned|
|and business|
|operated|
|before validity|
|date of|
|commitment,|
|during the|
|period as|
|controlling|
|shareholder of|
|Shenzhen|
|SEG, in order|
|to guarantee|
|sustainable|
|development|
|of Shenzhen|
|SEG, the|
|Company will|
|exercise|
|supervisory|
|and restriction|
|on operating|
|activities of its|
|own and the|
|affiliated|
|enterprises|
|under its|
|control, and|
|will not|
|establish new|
|or acquire any|
|assets or|
|businesses|
|same or|
|similar with|
|its main|
|businesses|
|within the|
|operation area|
|of Shenzhen|
|SEG, and will|

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|-|
|also not be|
|engaged in|
|any activities|
|which may|
|damage the|
|interests of|
|Shenzhen|
|SEG and other|
|companies,|
|enterprises or|
|other|
|economic|
|organizations|
|under control|
|of Shenzhen|
|SEG; if in|
|future there|
|exists any|
|business|
|opportunity|
|same or|
|similar with|
|other main|
|businesses|
|within|
|Shenzhen|
|SEG operation|
|area, such|
|opportunity|
|will|
|preferentially|
|recommended|
|to Shenzhen|
|SEG and other|
|companies,|
|enterprises or|
|other|
|economic|
|organizations|
|under control|
|of Shenzhen|
|SEG.|
|However, any|
|of the|

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|-|
|following|
|cases is an|
|exception:|
|However, any|
|of the|
|following|
|cases is an|
|exception: (1)|
|Due to|
|national laws,|
|regulations|
|and policies|
|and other|
|reasons, any|
|commercial|
|properties and|
|real estate|
|development|
|projects|
|appropriated|
|or allocated|
|through|
|oriented|
|protocols by|
|the|
|government to|
|SEG Group|
|and any|
|enterprises|
|invested by it;|
|or (2) When|
|the general|
|conditions of|
|tender,|
|transfer or|
|assignment of|
|specific|
|commercial|
|properties and|
|real estate|
|development|
|projects have|
|specific|
|requirements|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|on the bidder|
|or assignee,|
|Shenzhen|
|SEG is not|
|qualified but|
|SEG Group is|
|qualified.|
|Commercial|
|property and|
|real estate|
|development|
|projects that|
|are same as|
|the main|
|business of|
|Shenzhen|
|SEG or result|
|in horizontal|
|competition|
|subject to the|
|above|
|exclusions|
|may be|
|invested and|
|built by SEG|
|Group at first.|
|If Shenzhen|
|SEG thinks|
|that such|
|assets are|
|eligible to be|
|injected into|
|Shenzhen|
|SEG, upon|
|receipt of the|
|written|
|acquisition|
|notice from|
|Shenzhen|
|SEG, SEG|
|Group will|
|negotiate on|
|acquisition|
|and transfer|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|such projects|
|to Shenzhen|
|SEG. (3)|
|Guarantee that|
|after|
|completion of|
|this|
|restructuring,|
|the Company|
|and other|
|companies,|
|enterprises,|
|other|
|economic|
|organizations|
|or other|
|connected|
|parties under|
|control of the|
|Company will|
|reduce|
|connected|
|transactions|
|with Shenzhen|
|SEG and|
|subject|
|company and|
|other|
|companies,|
|enterprises,|
|other|
|economic|
|organizations|
|or other|
|connected|
|parties under|
|their control;|
|for any|
|connected|
|transactions|
|which are|
|indeed|
|necessary and|
|unavoidable,|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|guarantee to|
|carry out fair|
|operation|
|following|
|market|
|principle at|
|fair price and|
|fulfill relevant|
|approval|
|procedure and|
|information|
|disclosure|
|obligations|
|according to|
|the provisions|
|of relevant|
|laws,|
|regulations|
|and normative|
|documents. 5.|
|The Company|
|will guarantee|
|the financial|
|independence|
|of Shenzhen|
|SEG and the|
|subject|
|company: (1)|
|After|
|completion of|
|the|
|restructuring,|
|Shenzhen|
|SEG and the|
|subject|
|company will|
|establish an|
|independent|
|financial|
|department,|
|independent|
|financial|
|accounting|
|system, and|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|standard and|
|independent|
|financial|
|accounting|
|rules. (2) After|
|completion of|
|the|
|restructuring,|
|Shenzhen|
|SEG and the|
|subject|
|company will|
|separately|
|open an|
|account in|
|banks, and do|
|not share|
|accounts with|
|the Company|
|and related|
|parties, such|
|as other|
|companies,|
|enterprises, or|
|other|
|economic|
|organizations|
|controlled by|
|the Company.|
|(3) After|
|completion of|
|the|
|restructuring,|
|financial|
|personnel of|
|Shenzhen|
|SEG and the|
|subject|
|company will|
|not hold a|
|part-time job|
|in the|
|Company or|
|related parties,|

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||
|-|
|such as other|
|companies,|
|enterprises, or|
|other|
|economic|
|organizations|
|controlled by|
|the Company.|
|(4) After|
|completion of|
|the|
|restructuring,|
|Shenzhen|
|SEG and the|
|subject|
|company will|
|independently|
|make financial|
|decisions, and|
|the Company|
|will not|
|interfere with|
|fund usage of|
|Shenzhen|
|SEG and the|
|subject|
|company. (5)|
|After|
|completion of|
|the|
|restructuring,|
|Shenzhen|
|SEG and the|
|subject|
|company will|
|pay taxes|
|independently|
|according to|
|laws. In case|
|of breach of|
|the foregoing|
|commitments,|
|the Company|
|will bear all|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||losses thus||||
|||incurred to||||
|||Shenzhen||||
|||SEG, and the||||
|||subject||||
|||company."||||
|||1. The||||
|||Company has||||
|||not any of the||||
|||following||||
|||situations as||||
|||specified in||||
|||Clause 6,||||
|||Administrative||||
|||Measures On||||
|||Acquisition Of||||
|||Listed||||
|||Companies:||||
|||(1) Damage||||
|||legitimate||||
|||rights and||||
|||interests of the||||
|||company||||
|||acquired and||||
|Shenzhen||||||
||Other|its|August 3,|||
|SEG Group||||Long-term|Being fulfilled|
||commitments|shareholders|2016|||
|Co., Ltd.||||||
|||utilizing||||
|||acquisition of||||
|||listed||||
|||company; (2)||||
|||With large||||
|||amount of||||
|||outstanding||||
|||debts and this||||
|||in-debt status||||
|||has lasted for||||
|||a certain||||
|||period of time;||||
|||(3) Has actual||||
|||or alleged||||
|||serious illegal||||
|||activities in||||
|||recent three||||
|||years; (4) Has||||

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||
|-|
|serious|
|behaviors of|
|breaching|
|promises in|
|securities|
|market in|
|recent three|
|years; (5)|
|Other|
|situations in|
|which no|
|acquisition of|
|listed|
|companies are|
|allowed|
|according to|
|laws and|
|administrative|
|regulations|
|and in the|
|opinions of|
|CSRC. 2. The|
|Company and|
|its main|
|managers|
|have not|
|suffered from|
|any|
|administrative|
|punishment|
|(administrativ|
|e punishment|
|obviously|
|unrelated to|
|security|
|market|
|excluded),|
|criminal|
|punishment,|
|major civil|
|lawsuit or|
|arbitration|
|related to|
|economic|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||disputes||||
|||within the last||||
|||five years. In||||
|||case of breach||||
|||of the||||
|||foregoing||||
|||commitments,||||
|||the Company||||
|||will bear all||||
|||losses thus||||
|||incurred to||||
|||Shenzhen||||
|||SEG, and the||||
|||subject||||
|||company."||||
|||"1. The||||
|||Company is||||
|||an enterprise||||
|||incorporated||||
|||in China that||||
|||owns the full||||
|||capacity for||||
|||civil conduct||||
|||and has the||||
|||legal body||||
|||qualification||||
|||for||||
|||participating||||
|Shenzhen||in the||||
||Other||August 3,|||
|SEG Group||restructuring,||Long-term|Being fulfilled|
||commitments||2016|||
|Co., Ltd.||signing||||
|||agreements||||
|||with Shenzhen||||
|||SEG, and||||
|||performing||||
|||rights and||||
|||obligations||||
|||under the||||
|||agreement. 2.||||
|||Except that||||
|||the property||||
|||located at 4F,||||
|||Block 2, SEG||||
|||Industry||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|Building of|
|SEG Property|
|Investment|
|funded by the|
|Company is to|
|handle the|
|transfer|
|formality|
|(with no legal|
|impediment),|
|the Company|
|has fulfilled|
|the obligation|
|of|
|contributing|
|capital to the|
|subject|
|company, and|
|has no acts|
|against its|
|obligations|
|and|
|responsibilitie|
|s as a|
|shareholder,|
|such as false|
|contribution,|
|deferred|
|investment, or|
|withdrawal of|
|capital. There|
|are no|
|circumstances|
|that may|
|affect the legal|
|existence of|
|the subject|
|company. 3.|
|There is no|
|dispute or|
|potential|
|dispute over|
|ownership of|
|equities of the|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|subject|
|company.|
|There are no|
|circumstances|
|that may|
|affect the legal|
|existence of|
|the subject|
|company. 4.|
|The equities|
|held by the|
|Company in|
|the subject|
|company are|
|actually|
|legally owned.|
|There is no|
|actual dispute|
|or potential|
|dispute over|
|ownership of|
|equities, no|
|trust,|
|shareholding|
|under|
|entrustment or|
|similar|
|arrangement,|
|no|
|commitment|
|or|
|arrangement|
|of forbidden|
|transfer or|
|limited|
|transfer, no|
|pledge,|
|freezing, seals|
|up, property|
|preservation|
|or other|
|limitation of|
|rights, and no|
|lawsuit,|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|arbitration or|
|other forms of|
|dispute which|
|would affect|
|the|
|restructuring.|
|Meanwhile,|
|the Company|
|guarantees|
|that the|
|equities it held|
|in the subject|
|company will|
|maintain the|
|status until the|
|equities are|
|registered|
|under|
|Shenzhen|
|SEG after|
|change of|
|registration. 5.|
|The equities|
|held by the|
|Company in|
|the subject|
|company are|
|assets with|
|clear|
|ownership.|
|The Company|
|undertakes|
|that there are|
|no legal|
|obstacles to|
|stock transfer|
|after the|
|restructuring|
|of Shenzhen|
|SEG is|
|approved by|
|CSRC, and no|
|credit and debt|
|disputes. The|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|Company|
|promises to|
|complete|
|formalities for|
|ownership|
|transfer of|
|these equities|
|within the|
|agreed period.|
|6. Before the|
|equities are|
|registered|
|under|
|Shenzhen|
|SEG after|
|change of|
|registration,|
|the Company|
|undertakes|
|that the|
|subject|
|company will|
|maintain|
|normal,|
|orderly, and|
|legitimate|
|operation, and|
|will not take|
|actions|
|irrelevant to|
|normal|
|production|
|and|
|management,|
|such as|
|disposal of|
|assets,|
|external|
|guarantee, or|
|additional|
|major debts,|
|or illegally|
|transfer or|
|conceal assets|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|and business.|
|If the|
|foregoing|
|actions are|
|indeed|
|necessary,|
|provided that|
|national laws,|
|regulations,|
|and normative|
|documents are|
|not violated,|
|these actions|
|can be taken|
|only after|
|written|
|approval of|
|Shenzhen|
|SEG. 7. The|
|Company|
|undertakes|
|that there are|
|not any|
|ongoing or|
|potential|
|litigation,|
|arbitration, or|
|dispute that|
|may affect the|
|Company's|
|equity|
|transfer, and|
|all agreements|
|or contracts do|
|not contain|
|restrictive|
|clauses that|
|may affect the|
|Company's|
|equity|
|transfer. The|
|Articles of|
|Association,|
|internal|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||management||||
|||system||||
|||documents,||||
|||and contracts||||
|||or agreements||||
|||do not contain||||
|||restrictive||||
|||clauses that||||
|||may affect the||||
|||Company's||||
|||equity||||
|||transfer. In||||
|||case of breach||||
|||of the||||
|||foregoing||||
|||commitments,||||
|||the Company||||
|||will bear all||||
|||losses thus||||
|||incurred to||||
|||Shenzhen||||
|||SEG."||||
|||"The||||
|||Company has||||
|||not disclosed||||
|||any insider||||
|||information||||
|||about the||||
|||restructuring||||
|||or utilized||||
|||such insider||||
|||information||||
|Shenzhen||||||
||Other|for insider|August 3,|||
|SEG Group||||Long-term|Being fulfilled|
||commitments|trading. In|2016|||
|Co., Ltd.||||||
|||case of breach||||
|||of the||||
|||foregoing||||
|||commitments,||||
|||the Company||||
|||will bear all||||
|||losses thus||||
|||incurred to||||
|||Shenzhen||||
|||SEG."||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||"1. Shares of||||
|||Shenzhen||||
|||SEG||||
|||subscribed by||||
|||the Company||||
|||in the||||
|||restructuring||||
|||will be locked||||
|||up for 36||||
|||months from||||
|||the date of||||
|||listing. Shares||||
|||of Shenzhen||||
|||SEG acquired||||
|||in the||||
|||restructuring||||
|||shall not be||||
|||traded or||||
|||transferred or||||
|||managed by||||
|||others under||||
|Shenzhen||||||
||Other|entrustment or|August 3,|||
|SEG Group||||Long-term|Being fulfilled|
||commitments|repurchased|2016|||
|Co., Ltd.||||||
|||by Shenzhen||||
|||SEG within 36||||
|||months from||||
|||the date of||||
|||completion of||||
|||the offering.||||
|||After the||||
|||completion of||||
|||this offering,||||
|||additional||||
|||shares held||||
|||due to bonus||||
|||shares and||||
|||converted||||
|||equity capital||||
|||shall be also||||
|||subject to the||||
|||foregoing||||
|||agreement.||||
|||When the||||
|||foregoing||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|lockup period|
|expires, share|
|transfer and|
|transaction|
|will be subject|
|to the valid|
|laws,|
|regulations,|
|and|
|provisions,|
|rules, and|
|requirements|
|of China|
|Securities|
|Regulatory|
|Commission|
|and Shenzhen|
|Stock|
|Exchange. 2.|
|If the closing|
|price of|
|Shenzhen|
|SEG stocks is|
|lower than the|
|initial offer|
|price for|
|consecutively|
|20 trading|
|days within 6|
|months after|
|the|
|completion of|
|the|
|restructuring|
|or the closing|
|price of|
|Shenzhen|
|SEG stocks is|
|lower than the|
|initial offer|
|price at the|
|end of 6|
|months after|
|the|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|completion of|
|the|
|restructuring,|
|the lockup|
|period of|
|Shenzhen|
|SEG stocks|
|will be|
|automatically|
|extended for 6|
|months. 3. If|
|the|
|information|
|provided or|
|disclosed in|
|the|
|restructuring|
|is suspected of|
|false|
|representation|
|s, misleading|
|statements, or|
|material|
|omissions and|
|the judicial|
|authority or|
|China|
|Securities|
|Regulatory|
|Commission|
|investigates|
|and places the|
|case on file,|
|shares of|
|Shenzhen|
|SEG held by|
|the Company|
|will not be|
|transferred. 4.|
|Before the|
|restructuring,|
|all stocks of|
|Shenzhen|
|SEG held by|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|the Company|
|shall not be|
|transferred|
|within 12|
|months after|
|the|
|completion of|
|the|
|restructuring.|
|5. If relevant|
|laws,|
|regulations,|
|and normative|
|documents|
|have special|
|requirements|
|on the lockup|
|period of|
|shares, these|
|laws,|
|regulations,|
|and normative|
|documents|
|shall prevail.|
|6. If the|
|foregoing|
|lockup period|
|is not|
|consistent|
|with the latest|
|regulation|
|requirement of|
|the security|
|regulatory|
|authority, the|
|Company|
|agrees to|
|adjust it|
|according to|
|the latest|
|regulation|
|opinion of the|
|regulation|
|suggestion of|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||the security||||
|||regulatory||||
|||authority and||||
|||implement the||||
|||relevant||||
|||provision of||||
|||China||||
|||Securities||||
|||Regulatory||||
|||Commission||||
|||and Shenzhen||||
|||Stock||||
|||Exchange||||
|||after the||||
|||lockup period||||
|||expires.||||
|||"1. In the||||
|||recent 5 years,||||
|||the Company||||
|||has not been||||
|||subject to any||||
|||administrative||||
|||penalty||||
|||(except those||||
|||not related to||||
|||the securities||||
|||market) or||||
|||criminal||||
|||penalty. 2. In||||
|Shenzhen||||Before||
||Other|the recent 5|August 3,|||
|SEG Group||||completion of|Being fulfilled|
||commitments|years, except|2016|||
|Co., Ltd.||||restructuring||
|||for those cases||||
|||that have been||||
|||concluded,||||
|||such as the||||
|||case of Hainan||||
|||SEG||||
|||International||||
|||Trust and||||
|||Investment||||
|||Company,||||
|||Zhongshi||||
|||case, GTJA||||
|||case and||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|Dasheng case,|
|the Company|
|is not involved|
|in other major|
|civil|
|proceedings or|
|arbitration|
|(the subject in|
|dispute of 10|
|million Yuan)|
|related to|
|economic|
|disputes. 3.|
|The Company|
|has never been|
|suspected of|
|insider trading|
|related to|
|major asset|
|restructuring|
|and placed on|
|file for|
|investigation|
|or placed on|
|file with the|
|case not|
|settled. In the|
|recent 5 years,|
|the Company|
|has never|
|failed to repay|
|large debts or|
|fulfill|
|commitments,|
|or been|
|subject to|
|administrative|
|supervision|
|measures by|
|the CSRC or|
|disciplinary|
|action by the|
|Stock|
|Exchange due|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||to insider||||
|||trading related||||
|||to major assets||||
|||restructuring,||||
|||or been held||||
|||criminally||||
|||liable by the||||
|||judicial||||
|||authorities||||
|||according to||||
|||law. In case of||||
|||breach of the||||
|||foregoing||||
|||commitments,||||
|||the Company||||
|||will bear all||||
|||losses thus||||
|||incurred to||||
|||Shenzhen||||
|||SEG."||||
|||"1. I have not||||
|||been subject||||
|||to any||||
|Bo Hongxi,||administrative||||
|Cao Xiang,||penalty by the||||
|Fan Zhiqing,||CSRC in||||
|Li Luoli, Liu||recent 36||||
|Fusong, Liu||months, or||||
|Zhijun, Ru||public censure||||
|Guiqin, Song||by the Stock||||
|Pingping,||Exchange in||||
|||||Before||
|Tang|Other|the recent 12|August 3,|||
|||||completion of|Being fulfilled|
|Chongyin,|commitment|months. 2. I|2016|||
|||||restructuring||
|Wang Li, Xu||have not been||||
|Ning, Yu||investigated||||
|Qian, Zhang||by judicial||||
|Guangliu,||authorities due||||
|Zhang Haifan,||to alleged||||
|Zheng Dan,||crimes or by||||
|Zhong||CSRC due to||||
|Longqing||alleged||||
|||irregularities.||||
|||In case of||||
|||breach of the||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||following||||
|||commitments,||||
|||I will bear all||||
|||losses thus||||
|||incurred to||||
|||Shenzhen||||
|||SEG."||||
|||"1. In the||||
|||recent 5 years,||||
|||the Company||||
|||has not been||||
|||subject to any||||
|||administrative||||
|||penalty or||||
|||criminal||||
|||penalty or||||
|||involved in||||
|||other major||||
|||civil||||
|||proceedings or||||
|||arbitration||||
|||related to||||
|Directors,||economic||||
|supervisors,||disputes. 2.||||
|and senior||The Company||Before||
||Other||August 3,|||
|executives of||has never been||completion of|Being fulfilled|
||commitments||2016|||
|Shenzhen||suspected of||restructuring||
|SEG Group||insider trading||||
|Co., Ltd.||related to||||
|||major asset||||
|||restructuring||||
|||and placed on||||
|||file for||||
|||investigation||||
|||or placed on||||
|||file with the||||
|||case not||||
|||settled. In the||||
|||recent 5 years,||||
|||the Company||||
|||has never||||
|||failed to repay||||
|||large debts or||||
|||fulfill||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||commitments,||||
|||or been||||
|||subject to||||
|||administrative||||
|||supervision||||
|||measures by||||
|||the CSRC or||||
|||disciplinary||||
|||action by the||||
|||Stock||||
|||Exchange due||||
|||to insider||||
|||trading related||||
|||to major assets||||
|||restructuring,||||
|||or been held||||
|||criminally||||
|||liable by the||||
|||judicial||||
|||authorities||||
|||according to||||
|||law. In case of||||
|||breach of the||||
|||following||||
|||commitments,||||
|||I will bear all||||
|||losses thus||||
|||incurred to||||
|||Shenzhen||||
|||SEG."||||
|SegMaker,||"1. In the||||
|SEG Kangle,||recent 3 years,||||
|SEG Property||the Company||||
|Development,||has not been||||
|SEG Property||subject to any||||
|Investment,||major||||
|||||Before||
|SEG New|Other|administrative|August 3,|||
|||||completion of|Being fulfilled|
|City|commitments|punishment or|2016|||
|||||restructuring||
|Construction,||criminal||||
|SEG Property||punishment or||||
|Management,||involved in||||
|Huizhou||other major||||
|Qunxing,||civil||||
|Xi'an SEG,||proceedings or||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||
|-|-|
|Beijing|arbitration|
||related to|
||economic|
||disputes. 2.|
||The Company|
||has never been|
||suspected of|
||insider trading|
||related to|
||major asset|
||restructuring|
||and placed on|
||file for|
||investigation|
||or placed on|
||file with the|
||case not|
||settled. In the|
||recent 5 years,|
||the Company|
||has never|
||failed to repay|
||large debts or|
||fulfill|
||commitments,|
||or been|
||subject to|
||administrative|
||supervision|
||measures by|
||the CSRC or|
||disciplinary|
||action by the|
||Stock|
||Exchange due|
||to insider|
||trading related|
||to major assets|
||restructuring,|
||or been held|
||criminally|
||liable by the|
||judicial|
||authorities|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||according to||||
|||law. In case of||||
|||breach of the||||
|||following||||
|||commitments,||||
|||I will bear all||||
|||losses thus||||
|||incurred to||||
|||Shenzhen||||
|||SEG."||||
|||"1. SEG||||
|||Group has||||
|||legal||||
|||ownership of||||
|||lands,||||
|||properties, and||||
|||equities||||
|||transferred to||||
|||SegMaker||||
|||without||||
|||compensation||||
|||before the||||
|||restructuring,||||
|||and there is no||||
|||dispute over||||
|||the ownership||||
|Shenzhen||||||
||Other|of transferred|August 3,|||
|SEG Group||||Long-term|Being fulfilled|
||commitments|assets. Except|2016|||
|Co., Ltd.||||||
|||for some||||
|||mortgaged||||
|||properties that||||
|||require the||||
|||consent of the||||
|||mortgagee,||||
|||there is no||||
|||legal obstacle||||
|||to the||||
|||registration of||||
|||ownership||||
|||change. 2. The||||
|||Company||||
|||undertakes to||||
|||complete the||||
|||formalities of||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||ownership||||
|||registration||||
|||change of||||
|||assets||||
|||transferred to||||
|||SegMaker||||
|||before the||||
|||Board of||||
|||Directors||||
|||reviews the||||
|||restructuring||||
|||draft. The||||
|||Company will||||
|||compensate||||
|||SegMaker in||||
|||full if||||
|||SegMaker is||||
|||held||||
|||responsible or||||
|||punished, or||||
|||suffer any||||
|||other loss due||||
|||to the||||
|||Company's||||
|||violation of||||
|||the foregoing||||
|||commitment||||
|||or defects of||||
|||the transferred||||
|||assets."||||
|||"As of the||||
|||date of||||
|||issuance of the||||
|||commitment||||
|||letter, SEG||||
|||Kangle owns||||
|Shenzhen||||Before||
||Other|9 properties|August 3,|||
|SEG Group||||completion of|Being fulfilled|
||commitments|with the total|2016|||
|Co., Ltd.||||restructuring||
|||construction||||
|||area of||||
|||12,941.28||||
|||square meters.||||
|||The actual||||
|||proprietor of||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|the property|
|located at 1F,|
|Block 1, SEG|
|Industry|
|Building with|
|an area of 902|
|square meters|
|is SEG Group.|
|Due to the|
|provision that|
|industrial|
|buildings in|
|Shenzhen|
|shall be|
|transferred as|
|a whole, the|
|transfer|
|registration|
|formality for|
|the property|
|has not been|
|handled. The|
|actual|
|proprietor of|
|Room 508,|
|Block 4, SEG|
|Residential|
|Quarter is|
|SEG Kangle,|
|but the|
|property is|
|registered|
|under SEG|
|Group and the|
|transfer|
|formality for|
|the property|
|has not been|
|handled. The|
|Company|
|undertakes|
|that all parties|
|have no|
|disputes over|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|the ownership|
|of the|
|foregoing|
|property|
|whose|
|registered|
|proprietor is|
|SEG Kangle|
|but whose|
|actual|
|proprietor is|
|SEG Group|
|and the|
|property|
|whose|
|registered|
|proprietor is|
|SEG Group|
|but whose|
|actual|
|proprietor is|
|SEG Kangle.|
|SEG Group|
|will assist|
|SEG Kangle|
|in completing|
|the division|
|and transfer|
|registration|
|formalities for|
|the foregoing|
|properties.|
|After the|
|restructuring,|
|if Shenzhen|
|SEG suffers|
|any losses due|
|to ownership|
|of such|
|properties,|
|SEG Group|
|will|
|compensate|
|Shenzhen|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|SEG in full. 2.|
|The|
|construction|
|in|
|process-assem|
|bly workshop|
|that SEG|
|Group uses to|
|contribute|
|capital to SEG|
|Property|
|Investment is|
|4F, Block 2,|
|SEG Industry|
|Building (real|
|estate|
|proprietorship|
|certificate|
|No.: S. F. D.|
|Zi. No.|
|3000759297)|
|with the total|
|area of|
|1,936.71|
|square meters.|
|The property|
|was delivered|
|to SEG|
|Property|
|Investment|
|upon capital|
|contribution,|
|but the|
|transfer|
|formality|
|could not be|
|handled|
|without the|
|certificate on|
|capital|
|contribution.|
|Due to|
|negligence of|
|the handler,|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|the property|
|was registered|
|under SEG|
|Group|
|together with|
|other|
|properties of|
|SEG Industry|
|Building|
|belonging to|
|SEG Group.|
|Due to the|
|restriction of|
|transfer of|
|industrial|
|buildings as a|
|whole, the|
|transfer|
|formality has|
|not been|
|handled. SEG|
|Property|
|Investment|
|has been|
|occupying,|
|using, and|
|acquiring|
|operating|
|revenue from|
|the property|
|since capital|
|contribution.|
|The Company|
|will assist|
|SEG Property|
|Investment in|
|completing|
|the transfer|
|registration|
|formality of|
|the foregoing|
|property. After|
|the|
|restructuring,|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|if Shenzhen|
|SEG suffers|
|any losses due|
|to ownership|
|of such|
|properties,|
|SEG Group|
|will|
|compensate|
|Shenzhen|
|SEG in full. 3.|
|The Company|
|will help and|
|propel the|
|subject|
|company and|
|its subsidiaries|
|to complete|
|ownership|
|registration of|
|land and|
|property|
|assets and|
|regulate the|
|land purpose.|
|4. If due to|
|land use rights|
|and property|
|assets existing|
|before the|
|completion of|
|the|
|restructuring,|
|the subject|
|company and|
|its subsidiaries|
|(1) fail to|
|timely handle|
|the land use|
|rights and the|
|proprietorship|
|certificate|
|(excluding|
|results not|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|caused by the|
|subject|
|company and|
|its|
|subsidiaries,|
|such as force|
|majeure, laws,|
|policies,|
|government|
|management,|
|and change in|
|planned land|
|purpose); or|
|(2) cannot|
|handle the|
|relevant land|
|use rights and|
|real estate|
|proprietorship|
|certificate|
|(excluding|
|results not|
|caused by the|
|subject|
|company and|
|its|
|subsidiaries,|
|such as force|
|majeure, laws,|
|policies,|
|government|
|management,|
|and change in|
|planned land|
|purpose); or|
|(3) are subject|
|to other|
|circumstances|
|of|
|nonstandard|
|land use rights|
|and properties|
|(excluding|
|results not|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||caused by the||||
|||subject||||
|||company and||||
|||its||||
|||subsidiaries,||||
|||such as force||||
|||majeure, laws,||||
|||policies,||||
|||government||||
|||management,||||
|||and change in||||
|||planned land||||
|||purpose), and||||
|||suffer actual||||
|||losses||||
|||including but||||
|||not limited to||||
|||compensation,||||
|||fines,||||
|||expenses, and||||
|||interests||||
|||damage, the||||
|||Company will||||
|||compensate||||
|||the subject||||
|||company and||||
|||its subsidiaries||||
|||in full.||||
|||Before||||
|||issuance date||||
|||of the||||
|||restructuring||||
|||report of||||
|||Shenzhen||||
|||SEG, SEG||||
|Shenzhen||||Before||
||Other|Group will|August 3,|||
|SEG Group||||completion of|Being fulfilled|
||commitments|finish|2016|||
|Co., Ltd.||||restructuring||
|||formalities||||
|||related to||||
|||transfer of||||
|||ownership of||||
|||the property||||
|||(4F, Block 2,||||
|||SEG Industry||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||
|-|
|Building). If|
|SEG Group|
|fails to finish|
|the formalities|
|at expiration,|
|SEG Group|
|agrees to|
|compensate|
|SEG Property|
|Investment|
|RMB 1.5|
|million in|
|currency, and|
|allows SEG|
|Property|
|Investment to|
|continue to|
|use the|
|property for|
|free until SEG|
|Group|
|transfers the|
|ownership of|
|the property to|
|SEG Property|
|Investment.|
|SEG Group|
|agrees to|
|compensate|
|SEG Property|
|Investment for|
|any operating|
|loss or other|
|economic loss|
|of SEG|
|Property|
|Investment|
|caused by|
|SEG Group's|
|failure in|
|transferring|
|the ownership|
|of the|
|property.|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
||||According to||||
||||the Article||||
||||Five of the||||
||||Equity||||
||||Transfer||||
||||Agreement||||
||||signed by the||||
||||Company with||||
||||SEG Group||||
||||when the||||
||||Company was||||
||||listed, SEG||||
||||Group agreed||||
||||that the||||
||||Company and||||
||||its subsidiaries||||
||||and associated||||
||||companies to||||
||||use the eight||||
|||Commitment|||||
||||trademarks||||
|||on horizontal|||||
||||registered by||||
||Shenzhen|competition,|||||
|Commitment made at the time of|||SEG Group at||||
||SEG Group|related||July 1, 1996|Long-term|Being fulfilled|
|initial public offerings or refinancing|||the National||||
||Co., Ltd.|transaction,|||||
||||Trademark||||
|||and capital|||||
||||Bureau; SEG||||
|||occupation|||||
||||Group agreed||||
||||that the||||
||||Company||||
||||used the||||
||||aforesaid||||
||||trademarks or||||
||||similar signs||||
||||as the||||
||||Company’s||||
||||logo and used||||
||||the trademarks||||
||||and signs||||
||||during its||||
||||operation; the||||
||||Company||||
||||need not pay||||
||||any fee to||||
||||SEG Group||||
||||for using the||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||aforesaid||||
|||trademarks or||||
|||signs.||||
|||As for the||||
|||problem||||
|||pointed out by||||
|||Shenzhen||||
|||Office of||||
|||China||||
|||Securities||||
|||Regulatory||||
|||Commission||||
|||during on-site||||
|||inspection in||||
|||the Company||||
|||that the||||
|||Company and||||
|||SEG Group||||
|||are||||
|||competitive in||||
||Commitment|the electronic||||
||on horizontal|business, the||||
|Shenzhen|competition,|Company has||||
||||September 14,|||
|SEG Group|related|received a||Long-term|Being fulfilled|
||||2007|||
|Co., Ltd.|transaction,|written||||
||and capital|Commitment||||
||occupation|Letter from||||
|||SEG Group on||||
|||September 14,||||
|||2007. The||||
|||content of the||||
|||Commitment||||
|||Letter is as||||
|||follows: "The||||
|||competition in||||
|||electronic||||
|||business||||
|||between SEG||||
|||Group and||||
|||Shenzhen||||
|||SEG Co., Ltd.||||
|||occurs due to||||
|||historical||||
|||reasons and||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||
|-|-|-|-|-|-|
|||objective||||
|||market||||
|||development||||
|||background.||||
|||SEG Group||||
|||hereby||||
|||commits that||||
|||we will not||||
|||separately||||
|||operate||||
|||businesses||||
|||similar to||||
|||those of||||
|||Shenzhen||||
|||SEG in the||||
|||same city."||||
|||The 6th||||
|||interim||The term of||
|||meeting of the||validity is||
|||5th Board of||from February||
|||Directors held||1, 2011 to||
|||on January 26,||January 31,||
|||2011 reviewed||2016, five||
|||and approved||years in total.||
|||the Proposal||And the||
|||of Solving the||entrusted||
|||Horizontal||operating||
||Commitment|||||
|||Competition||management||
||on horizontal|||||
|||between the||contract||
|Shenzhen|competition,|||||
|||Company and|January 26,|expires within||
|SEG Group|related||||Being fulfilled|
|||Its Controlling|2011|the report||
|Co., Ltd.|transaction,|||||
|||Shareholder.||period. As of||
||and capital|||||
|||After friendly||the end of the||
||occupation|||||
|||consultation,||report period,||
|||SEG Group||the Contract||
|||agreed to||has been||
|||entrust the||renewed, and||
|||Company to||the term of||
|||operate and||validity is||
|||manage with||from February||
|||full authority||1, 2016 to||
|||SEG||January 31,||
|||Communicatio||2017.||
|||ns Market||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
||||under direct||||
||||management||||
||||of SEG||||
||||Group.||||
||||Therefore, the||||
||||two parties||||
||||have signed||||
||||the||||
||||entrustment||||
||||operation and||||
||||management||||
||||contract, and||||
||||SEG Group||||
||||will pay the||||
||||Company||||
||||RMB 200,000||||
||||Yuan as||||
||||entrust||||
||||management||||
||||expenses.||||
|Commitment on equity incentives|Not applicable||||||
||||Based on our||||
||||confidence in||||
||||economic||||
||||prospect of||||
||||China and||||
||||future||||
||||development||||
||||of the||||
||||Company, in||||
||||order to||||
|Other commitments made to the|Shenzhen||jointly||||
|||Other|||||
|medium and small shareholders of the|SEG Group||maintain a|July 9, 2015|12 months|Fulfilled|
|||commitments|||||
|Company|Co., Ltd.||stable capital||||
||||market and||||
||||promote a||||
||||sustainable,||||
||||stable and||||
||||healthy||||
||||development||||
||||of the||||
||||Company,||||
||||Shenzhen||||
||||SEG Group||||

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|||Co., Ltd., the|
|||holding|
|||shareholder of|
|||the Company,|
|||hereby|
|||commits that,|
|||it will not|
|||reduce the|
|||amount of|
|||shares of the|
|||Company it|
|||holds within|
|||the coming|
|||twelve months|
|||since the|
|||issuance date|
|||of this|
|||Announcemen|
|||t, i.e., July 9.|
|Whether commitments were fulfilled|||
||Yes||
|on time|||
|In case the commitments are not|||
|fulfilled at expiration, the Company|||
|should provide explanation on|N/A||
|unfulfilled items, and the next work|||
|plans.|||

VI. Estimation of operating results of 2016
Warning of negative estimated accumulated net profit from the beginning of the year to the end of the next report period or large fluctuation over the same period of the previous year and causes
□ Applicable√ Not applicable
V. Securities investment
√ Applicable□ Not applicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Shares|Sharehold||||Gains and|||
|||Short|Initial|||Shares|Sharehold|Closing||||
|||||held at|ing ratio||||losses in|||
|Stock|Stock|form of|investmen|||held at|ing ratio|book||Accounti|Source of|
|||||the|at the||||the report|||
|type|code|the|t cost|||period|at the end|value||ng item|shares|
|||||beginning|beginning||||period|||
|||security|(Yuan)|||end|of period|(Yuan)||||
|||||of period|of period||||(Yuan)|||
|||Youhao||||||634,137.3||Financial|Initial|
|Share|600778||90,405.00|60,683|0.04%|60,683|0.04%|||||
|||Group||||||5||assets|share|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||available||
|||||||||||for sale||
|||||||||||Long-ter||
|||Huakong|279,307,0|201,345,0||201,345,0||175,501,2|-6,241,99|m equity|Initial|
|Share|000068||||20.00%||20.00%|||||
|||SEG|46.38|33||33||31.93|9.33|investmen|share|
|||||||||||t||
|||||||||||Financial||
|||SEG||||||||||
||||8,275,321|||||13,515,39||assets|Initial|
|Share|832770|Navigatio||7,500,000|11.38%|7,500,000|11.38%|||||
||||.43|||||2.83||available|share|
|||ns||||||||||
|||||||||||for sale||
||||287,672,7|208,905,7||208,905,7||189,650,7|-6,241,99|||
|Total|||||-||-|||-|-|
||||72.81|16||16||62.11|9.33|||

VI. Derivative investment
□ Applicable√ Not applicable
No derivative investment is involved in the report period.
VII. Registration form for investigations, communication and interviews in the report period√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Time|Means|Type|Investigation Index|
||||Inquire about the progress status of|
||||major assets restructuring. The Company|
|July 6, 2016|Phone call|Individual||
||||has given a reply according to the actual|
||||progress status that has been disclosed.|
||||Inquire about the progress status of|
||||major assets restructuring. The Company|
|July 14, 2016|Phone call|Individual||
||||has given a reply according to the actual|
||||progress status that has been disclosed.|
||||Inquire about the progress status of|
||||major assets restructuring. The Company|
|July 27, 2016|Phone call|Individual||
||||has given a reply according to the actual|
||||progress status that has been disclosed.|
||||Inquire about the assets injection related|
||||information in this major asset|
||||restructuring. The Company has given a|
|August 9, 2016|Phone call|Individual||
||||reply according to the major asset|
||||restructuring report that has been|
||||disclosed.|
|August 18, 2016|Phone call|Individual|Inquire about the number of shareholders|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
||||as of August 15.The Company has given|
||||a reply according to the register of|
||||shareholders released by the Securities|
||||Depository and Clearing Corporation.|
||||Inquire about the progress status of|
||||major assets restructuring. The Company|
|August 23, 2016|Phone call|Individual||
||||has given a reply according to the actual|
||||progress status that has been disclosed.|
||||Inquire about the number of shareholders|
||||as of August 30.The Company has given|
|August 31, 2016|Phone call|Individual|a reply according to the register of|
||||shareholders released by the Securities|
||||Depository and Clearing Corporation.|
||||Inquire about voting results of the|
||||shareholders' meeting of the Company.|
|September 1, 2016|Phone call|Individual|The Company has given a reply|
||||according to the disclosed notice of the|
||||shareholders' meeting.|
||||Inquire about the progress status of|
||||major assets restructuring. The Company|
|September 7, 2016|Phone call|Individual||
||||has given a reply according to the actual|
||||progress status that has been disclosed.|
||||Inquire about the progress status of|
||||approval of major asset restructuring by|
||||China Securities Regulatory|
|September 19, 2016|Phone call|Individual||
||||Commission. The Company has given a|
||||reply according to the actual progress|
||||status that has been disclosed.|
||||Inquire about main business,|
||||transformation, and private placement of|
||||the Company. The Company has given a|
|September 21, 2016|On-site investigation|Organization||
||||reply according to the actual condition|
||||and disclosed such information on|
||||irm.cninfo.com.cn .|
||||Inquire about main business,|
||||transformation, and major asset|
||||restructuring progress of the Company.|
|September 28, 2016|On-site investigation|Organization|The Company has given a reply|
||||according to the actual condition and|
||||disclosed such information on|
||||irm.cninfo.com.cn .|

Full text of 2016 Q3 Report of Shenzhen SEG Co., Ltd. VIII. Illegal external guarantee
□ Applicable√ Not applicable
No illegal external guarantee is involved in the report period.
IX. Non-operating capital occupation on the listed company by the controlling shareholders and related parties
□ Applicable√ Not applicable
No non-operating capital occupation on the listed company by the controlling shareholders and related parties is involved in the report period.
Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd. Chapter 4 Financial Statements
I. Financial Statements
1. Consolidated Balance Sheet
Prepared by: Shenzhen SEG Co., Ltd.
September 30, 2016
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|198,351,497.31|276,863,429.10|
|Deposit reservation for balance|||
|Loans to other banks|40,000,000.00|40,000,000.00|
|Financial assets measured by fair|||
|value with changes included in current|||
|gains and losses|||
|Derivative financial assets|||
|Notes receivable|100,792.00||
|Accounts receivable|68,751,597.89|98,212,422.87|
|Advances|85,887,752.86|129,044,887.26|
|Premiums receivable|||
|Reinsurance accounts receivable|||
|Reinsurance deposit receivable|||
|Interest receivable|||
|Dividends receivable|||
|Other accounts receivable|60,964,997.67|27,352,784.33|
|Redemptory monetary capital for|||
|resale|||
|Inventory|610,981,171.82|450,809,934.72|
|Held-for-sale assets|||
|Non-current assets due within one|||
|year|||
|Other current assets|190,695,564.93|339,430,419.74|
|Total current assets|1,255,733,374.48|1,361,713,878.02|

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Non-current assets:|||
|Loans and advances issued|492,740,126.16|475,520,822.08|
|Financial assets available for sale|34,429,530.18|34,539,973.24|
|Held-to-maturity investment|||
|Long-term receivables|||
|Long-term equity investment|186,640,560.07|185,122,573.88|
|Investment properties|429,840,258.51|443,851,726.40|
|Fixed assets|37,155,404.45|37,524,425.25|
|Construction in progress|186,583.94|140,810.00|
|Engineering materials|||
|Disposal of fixed assets|4,577.55||
|Productive biological assets|||
|Oil & gas assets|||
|Intangible assets|893,740.28|1,143,762.11|
|Development expenses|||
|Goodwill|10,328,927.82|10,328,927.82|
|Long-term expenses to be amortized|51,422,694.54|49,235,999.86|
|Deferred income tax assets|10,433,814.57|10,433,814.57|
|Other non-current assets||5,103,811.14|
|Total non-current assets|1,254,076,218.07|1,252,946,646.35|
|Total assets|2,509,809,592.55|2,614,660,524.37|
|Current liabilities:|||
|Short-term borrowing|366,803,646.30|367,759,630.48|
|Loans from central bank||0.00|
|Deposits from customers and|||
|||0.00|
|interbank|||
|Loans from other banks||0.00|
|Financial liabilities measured by fair|||
|value with changes included in current||0.00|
|gains and losses|||
|Derivative financial liabilities||0.00|
|Notes payable||0.00|
|Accounts payable|22,763,090.01|89,908,781.98|
|Advances from customers|134,757,155.28|190,430,121.05|
|Financial assets sold for repurchase||0.00|

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Service charges and commissions|||
|||0.00|
|payable|||
|Payroll payable|7,749,915.62|21,849,134.16|
|Taxes payable|27,028,822.77|34,645,030.07|
|Interest payable|698,717.58|516,758.34|
|Dividends payable|17,302,998.39|2,218,224.58|
|Other payables|213,350,044.16|194,329,885.69|
|Reinsurance accounts payable||0.00|
|Insurance deposit||0.00|
|Customer brokerage deposits||0.00|
|Securities underwriting brokerage|||
|||0.00|
|deposits|||
|Held-for-sale liabilities||0.00|
|Non-current liabilities due within one|||
|||0.00|
|year|||
|Other current liabilities||0.00|
|Total current liabilities|790,454,390.11|901,657,566.35|
|Non-current liabilities:|||
|Long-term borrowing|||
|Bonds payable|||
|Preferred stock|||
|Perpetual capital securities|||
|Long-term payables|||
|Payroll payable|||
|Special payables|||
|Estimated liabilities||7,000,000.00|
|Deferred income|9,580,672.59|9,634,114.77|
|Deferred income tax liabilities|15,164,797.29|16,024,102.35|
|Other non-current liabilities|||
|Total non-current liabilities|24,745,469.88|32,658,217.12|
|Total liabilities|815,199,859.99|934,315,783.47|
|Owners' equity:|||
|Share capital|784,799,010.00|784,799,010.00|
|Other equity instruments||0.00|
|Preferred stock||0.00|

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Perpetual capital securities||0.00|
|Capital reserve|506,553,643.41|506,545,831.11|
|Less: Treasury shares||0.00|
|Other comprehensive income|271,582.93|326,662.48|
|Special reserve||0.00|
|Surplus reserve|109,922,336.87|109,922,336.87|
|General risk provision|||
|Undistributed profits|92,141,436.12|73,532,388.70|
|Total owners' equity attributable to theparent company|||
||1,493,688,009.33|1,475,126,229.16|
|Minority shareholders' equity|200,921,723.23|205,218,511.74|
|Total owners' equity|1,694,609,732.56|1,680,344,740.90|
|Total liabilities and owners' equity|2,509,809,592.55|2,614,660,524.37|

 Legal representative: Wang Li, Person in charge of accounting: Liu Zhijun, Responsible person of the accounting institution: Ying Huadong 2. Balance Sheet of the Parent Company
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|119,898,506.02|186,369,470.58|
|Financial assets measured by fair value|||
|with changes included in current gains and|||
|losses|||
|Derivative financial assets|||
|Notes receivable|||
|Accounts receivable|580,380.00||
|Advances|699,860.00|418,544.10|
|Interest receivable|||
|Dividends receivable|11,340,000.00||
|Other accounts receivable|704,807,909.31|570,671,617.38|
|Inventory|939,772.39|112,715.50|
|Held-for-sale assets|||
|Non-current assets due within one year|||
|Other current assets|280,000,000.00|393,166,401.54|

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Total current assets|1,118,266,427.72|1,150,738,749.10|
|Non-current assets:|||
|Financial assets available for sale|33,515,392.83|33,515,392.83|
|Held-to-maturity investment|||
|Long-term receivables|||
|Long-term equity investment|466,624,086.31|455,106,100.12|
|Investment properties|276,510,527.01|284,399,860.14|
|Fixed assets|19,410,805.19|19,458,584.25|
|Construction in progress||140,810.00|
|Engineering materials|||
|Disposal of fixed assets|4,577.55||
|Productive biological assets|||
|Oil & gas assets|||
|Intangible assets|474,650.50|622,054.24|
|Development expenses|||
|Goodwill|||
|Long-term expenses to be amortized|7,246,537.97|7,000,181.66|
|Deferred income tax assets|8,242,045.89|8,242,045.89|
|Other non-current assets|||
|Total non-current assets|812,028,623.25|808,485,029.13|
|Total assets|1,930,295,050.97|1,959,223,778.23|
|Current liabilities:|||
|Short-term borrowing|290,000,000.00|315,000,000.00|
|Financial liabilities measured by fair|||
|value with changes included in current gains|0.00||
|and losses|||
|Derivative financial liabilities|0.00||
|Notes payable|0.00|0.00|
|Accounts payable|79,596.00|36,075.52|
|Advances from customers|14,375,575.43|42,704,620.99|
|Payroll payable|2,335,933.25|13,652,201.42|
|Taxes payable|13,087,036.64|10,033,418.41|
|Interest payable|0.00|477,402.78|
|Dividends payable|119,803.29|119,803.29|
|Other payables|86,068,040.99|95,119,560.37|

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Held-for-sale liabilities|0.00||
|Non-current liabilities due within one|||
||0.00|0.00|
|year|||
|Other current liabilities|0.00|0.00|
|Total current liabilities|406,065,985.60|477,143,082.78|
|Non-current liabilities:|||
|Long-term borrowing|||
|Bonds payable|||
|Preferred stock|||
|Perpetual capital securities|||
|Long-term payables|||
|Payroll payable|||
|Special payables|||
|Estimated liabilities|0.00|7,000,000.00|
|Deferred income|9,500,000.00|9,500,000.00|
|Deferred income tax liabilities|0.00|0.00|
|Other non-current liabilities|||
|Total non-current liabilities|9,500,000.00|16,500,000.00|
|Total liabilities|415,565,985.60|493,643,082.78|
|Owners' equity:|||
|Share capital|784,799,010.00|784,799,010.00|
|Other equity instruments|0.00|0.00|
|Preferred stock|0.00|0.00|
|Perpetual capital securities|0.00|0.00|
|Capital reserve|507,781,650.13|507,773,837.83|
|Less: Treasury shares|0.00|0.00|
|Other comprehensive income|70.19|0.00|
|Special reserve|0.00|0.00|
|Surplus reserve|109,922,336.87|109,922,336.87|
|Undistributed profits|112,225,998.18|63,085,510.75|
|Total owners' equity|1,514,729,065.37|1,465,580,695.45|
|Total liabilities and owners' equity|1,930,295,050.97|1,959,223,778.23|

Legal representative: Wang Li, Person in charge of accounting: Liu Zhijun, Responsible person of the accounting institution: Ying Huadong
Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd. 3. Consolidated Profit Statement in the Report Period
Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the previous period|
|I. Total operating revenue|149,787,589.78|212,602,324.33|
|Including: Operating revenue|139,478,273.85|194,784,480.30|
|Interest income|8,204,499.97|17,246,745.96|
|Earned premiums|0.00||
|Service charges and|||
||2,104,815.96|571,098.07|
|commissions income|||
|II. Total operating cost|124,131,586.17|194,717,803.24|
|Including: Operating cost|110,866,002.03|170,669,427.73|
|Interest expenses|0.00|1,047,588.22|
|Commissions|0.00||
|Surrender value|0.00||
|Net compensation pay-outs|0.00||
|Net insurance deposit|||
||0.00||
|accrued|||
|Insurance dividends|0.00||
|Reinsurance expenses|0.00||
|Operating tax and|||
||1,905,261.68|6,311,149.42|
|surcharges|||
|Sale expenses|390,091.93|399,567.41|
|Management expenses|9,058,239.31|9,201,128.68|
|Financial cost|2,430,877.78|3,787,208.47|
|Loss from asset impairment|-518,886.56|3,301,733.31|
|Income from change of fair value|||
||0.00||
|(enter "-" for loss)|||
|Income from investment|||
||1,135,525.46|4,033,761.47|
|(enter "-" for loss)|||
|Including: Income from|||
|investment in joint ventures or|-1,655,333.15|526,748.08|
|associates|||
|Income from exchange (enter|||
||0.00||
|"-" for loss)|||

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|III. Operating profit (enter "-" for loss)|26,791,529.07|21,918,282.56|
|Add: Non-operating revenue|598,833.52|296,764.20|
|Including: Gains on disposal|||
||0.00|688.90|
|of non-current assets|||
|Less: Non-operating expenses|1,127,772.53|12,206.35|
|Including: Loss from disposal|||
||1,672.51|19,709.12|
|of non-current assets|||
|IV. Total profit (enter "-" for total loss)|26,262,590.06|22,202,840.41|
|Less: Income tax|5,281,530.11|7,803,559.99|
|V. Net profit (enter "-" for net loss)|20,981,059.95|14,399,280.42|
|Net profit attributable to owners of|||
||15,422,191.47|7,280,509.44|
|the parent company|||
|Profit and loss of minority|||
||5,558,868.48|7,118,770.98|
|shareholders|||
|VI. Net of tax of other comprehensive|||
||34,156.28||
|incomes|||
|Total owners' net of tax of other|||
|comprehensive incomes attributable to|22,748.63||
|the parent company|||
|1. Other comprehensive incomes|||
|not to be reclassified into gains and|0.00||
|losses|||
|(1) Changes of net|||
|liabilities or net assets of the|0.00||
|re-measured defined benefit plans|||
|(2) Shares of the investee|||
|of other comprehensive incomes not to|||
||0.00||
|be reclassified into gains and losses|||
|under the equity method|||
|2. Other comprehensive incomes|||
||22,748.63||
|to be reclassified into gains and losses|||
|(1) Shares of the investee|||
|of other comprehensive incomes to be|||
||22.09||
|reclassified into gains and losses under|||
|the equity method|||
|(2) Gains and losses from|||
|changes of fair value of the|22,726.54||
|available-for-sale financial assets|||
|(3) Held-to-maturity|0.00||

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|investments categorized as gains and|||
|losses from the available-for-sale|||
|financial assets|||
|(4) Effective gains or loss|||
||0.00||
|from cash flows|||
|(5) Foreign currency|||
||0.00||
|translation differences|||
|(6) Others|0.00||
|Net of tax of other comprehensive|||
|incomes attributable to minority|11,407.65||
|shareholders|||
|VII. Total comprehensive income|21,015,216.23|14,399,280.42|
|Total comprehensive income|||
|attributable to shareholders of the|15,444,940.10|7,280,509.44|
|parent company|||
|Total comprehensive income|||
||5,570,276.13|7,118,770.98|
|attributable to minority shareholders|||
|VIII. Earnings per share|||
|1. Basic earnings per share|0.0197|0.0095|
|2. Diluted earnings per share|0.0197|0.0095|

 Legal representative: Wang Li, Person in charge of accounting: Liu Zhijun, Responsible person of the accounting institution: Ying Huadong 4. Profit Statement of the Parent Company in the Report Period
Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the previous period|
|I. Operating revenue|23,942,257.49|28,747,818.26|
|Less: Operating cost|13,565,699.04|28,258,319.33|
|Operating tax and surcharges|170,433.25|1,641,683.79|
|Sale expenses|0.00|0.00|
|Management expenses|4,959,586.20|3,981,108.87|
|Financial cost|-7,860,250.82|-5,840,334.72|
|Loss from asset impairment|0.00|0.00|
|Income from change of fair value|||
||0.00|0.00|
|(enter "-" for loss)|||
|Income from investment|||
||7,303,310.41|18,134,531.78|
|(enter "-" for loss)|||
|Including: Income from|-1,655,333.15|526,748.08|

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|investment in joint ventures or|||
|associates|||
|II. Operating profit (enter "-" for loss)|20,410,100.23|18,841,572.77|
|Add: Non-operating revenue|129,776.01|0.31|
|Including: Gains on disposal|||
||0.00|0.00|
|of non-current assets|||
|Less: Non-operating expenses|1,076,373.55|0.00|
|Including: Loss from disposal|||
||0.00|0.00|
|of non-current assets|||
|III. Total profit (enter "-" for total loss)|19,463,502.69|18,841,573.08|
|Less: Income tax|321,259.05|2,356,490.23|
|V. Net profit (enter "-" for net loss)|19,142,243.64|16,485,082.85|
|V. Net of tax of other comprehensive|||
||22.09|0.00|
|incomes|||
|1. Other comprehensive incomes|||
|not to be reclassified into gains and|0.00|0.00|
|losses|||
|(1) Changes of net|||
|liabilities or net assets of the|0.00|0.00|
|re-measured defined benefit plans|||
|(2) Shares of the investee|||
|of other comprehensive incomes not to|||
||0.00|0.00|
|be reclassified into gains and losses|||
|under the equity method|||
|2. Other comprehensive incomes|||
||22.09|0.00|
|to be reclassified into gains and losses|||
|(1) Shares of the investee|||
|of other comprehensive incomes to be|||
||22.09|0.00|
|reclassified into gains and losses under|||
|the equity method|||
|(2) Gains and losses from|||
|changes of fair value of the|0.00|0.00|
|available-for-sale financial assets|||
|(3) Held-to-maturity|||
|investments categorized as gains and|||
||0.00|0.00|
|losses from the available-for-sale|||
|financial assets|||
|(4) Effective gains or loss|||
||0.00|0.00|
|from cash flows|||

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|(5) Foreign currency|||
||0.00|0.00|
|translation differences|||
|(6) Others|0.00|0.00|
|VI. Total comprehensive income|19,142,265.73|16,485,082.85|
|VII. Earnings per share|||
|1. Basic earnings per share|0.00||
|2. Diluted earnings per share|0.00||

Legal representative: Wang Li, Person in charge of accounting: Liu Zhijun, Responsible person of the accounting institution: Ying Huadong 5. Consolidated Profit Statement from the Beginning of the Year to the End of the Report Period
Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the previous period|
|I. Total operating revenue|562,038,422.54|637,821,378.42|
|Including: Operating revenue|502,151,510.70|569,339,615.91|
|Interest income|55,577,595.88|64,800,130.44|
|Earned premiums|0.00||
|Service charges and|||
||4,309,315.96|3,681,632.07|
|commissions income|||
|II. Total operating cost|469,051,475.46|553,431,805.96|
|Including: Operating cost|431,862,880.02|487,973,359.17|
|Interest expenses|465,888.89|4,206,636.86|
|Commissions|0.00||
|Surrender value|0.00||
|Net compensation pay-outs|0.00||
|Net insurance deposit|||
||0.00||
|accrued|||
|Insurance dividends|0.00||
|Reinsurance expenses|0.00||
|Operating tax and|||
||12,034,935.82|20,059,179.56|
|surcharges|||
|Sale expenses|1,208,423.09|1,340,972.53|
|Management expenses|24,774,641.82|25,205,691.94|
|Financial cost|3,186,217.90|4,630,265.70|
|Loss from asset impairment|-4,481,512.08|10,015,700.20|

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Income from change of fair value|||
||0.00||
|(enter "-" for loss)|||
|Income from investment|||
||2,401,978.48|9,485,725.11|
|(enter "-" for loss)|||
|Including: Income from|||
|investment in joint ventures or|-6,482,084.00|-4,366,107.86|
|associates|||
|Income from exchange (enter|||
||0.00||
|"-" for loss)|||
|III. Operating profit (enter "-" for loss)|95,388,925.56|93,875,297.57|
|Add: Non-operating revenue|1,017,221.88|1,342,743.31|
|Including: Gains on disposal|||
||0.00|19,382.00|
|of non-current assets|||
|Less: Non-operating expenses|3,886,657.87|827,995.29|
|Including: Loss from disposal|||
||10,988.73|216,133.33|
|of non-current assets|||
|IV. Total profit (enter "-" for total loss)|92,519,489.57|94,390,045.59|
|Less: Income tax|27,320,246.83|27,924,930.91|
|V. Net profit (enter "-" for net loss)|65,199,242.74|66,465,114.68|
|Net profit attributable to owners of|||
||42,278,461.89|42,186,643.05|
|the parent company|||
|Profit and loss of minority|||
||22,920,780.85|24,278,471.63|
|shareholders|||
|VI. Net of tax of other comprehensive|||
||-82,762.10|316,765.26|
|incomes|||
|Total owners' net of tax of other|||
|comprehensive incomes attributable to|-55,079.55|210,902.31|
|the parent company|||
|1. Other comprehensive incomes|||
|not to be reclassified into gains and|0.00||
|losses|||
|(1) Changes of net|||
|liabilities or net assets of the|0.00||
|re-measured defined benefit plans|||
|(2) Shares of the investee|||
|of other comprehensive incomes not to|||
||0.00||
|be reclassified into gains and losses|||
|under the equity method|||

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|2. Other comprehensive incomes|||
||-55,079.55|210,902.31|
|to be reclassified into gains and losses|||
|(1) Shares of the investee|||
|of other comprehensive incomes to be|||
||70.19||
|reclassified into gains and losses under|||
|the equity method|||
|(2) Gains and losses from|||
|changes of fair value of the|-55,149.74|210,902.31|
|available-for-sale financial assets|||
|(3) Held-to-maturity|||
|investments categorized as gains and|||
||0.00||
|losses from the available-for-sale|||
|financial assets|||
|(4) Effective gains or loss|||
||0.00||
|from cash flows|||
|(5) Foreign currency|||
||0.00||
|translation differences|||
|(6) Others|0.00||
|Net of tax of other comprehensive|||
|incomes attributable to minority|-27,682.55|105,862.95|
|shareholders|||
|VII. Total comprehensive income|65,116,480.64|66,781,879.94|
|Total comprehensive income|||
|attributable to shareholders of the|42,223,382.34|42,397,545.36|
|parent company|||
|Total comprehensive income|||
||22,893,098.30|24,384,334.58|
|attributable to minority shareholders|||
|VIII. Earnings per share|||
|1. Basic earnings per share|0.054|0.054|
|2. Diluted earnings per share|0.054|0.054|

 Legal representative: Wang Li, Person in charge of accounting: Liu Zhijun, Responsible person of the accounting institution: Ying Huadong 6. Profit Statement of the Parent Company from the Beginning of the Year to the End of the Report Period Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the previous period|
|I. Operating revenue|75,568,939.36|95,325,082.68|
|Less: Operating cost|50,456,187.48|72,953,564.13|

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Operating tax and surcharges|2,174,799.60|5,366,087.54|
|Sale expenses|0.00|0.00|
|Management expenses|11,476,417.99|10,157,313.97|
|Financial cost|-20,925,402.20|-13,539,109.03|
|Loss from asset impairment|0.00|-400,000.00|
|Income from change of fair value|||
||0.00||
|(enter "-" for loss)|||
|Income from investment|||
||53,065,641.17|55,753,612.90|
|(enter "-" for loss)|||
|Including: Income from|||
|investment in joint ventures or|-6,482,084.00|-4,366,107.86|
|associates|||
|II. Operating profit (enter "-" for loss)|85,452,577.66|76,540,838.97|
|Add: Non-operating revenue|137,076.01|214,230.50|
|Including: Gains on disposal|||
||0.00||
|of non-current assets|||
|Less: Non-operating expenses|3,784,288.80|21,350.50|
|Including: Loss from disposal|||
||7,915.25|4,100.50|
|of non-current assets|||
|III. Total profit (enter "-" for total loss)|81,805,364.87|76,733,718.97|
|Less: Income tax|8,995,462.97|12,468,465.43|
|V. Net profit (enter "-" for net loss)|72,809,901.90|64,265,253.54|
|V. Net of tax of other comprehensive|||
||70.19||
|incomes|||
|1. Other comprehensive incomes|||
|not to be reclassified into gains and|0.00||
|losses|||
|(1) Changes of net|||
|liabilities or net assets of the|0.00||
|re-measured defined benefit plans|||
|(2) Shares of the investee|||
|of other comprehensive incomes not to|||
|be reclassified into gains and losses|||
|under the equity method|||
|2. Other comprehensive incomes|||
||70.19||
|to be reclassified into gains and losses|||
|(1) Shares of the investee|||
||70.19||
|of other comprehensive incomes to be|||

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|reclassified into gains and losses under|||
|the equity method|||
|(2) Gains and losses from|||
|changes of fair value of the|||
|available-for-sale financial assets|||
|(3) Held-to-maturity|||
|investments categorized as gains and|||
||0.00||
|losses from the available-for-sale|||
|financial assets|||
|(4) Effective gains or loss|||
||0.00||
|from cash flows|||
|(5) Foreign currency|||
||0.00||
|translation differences|||
|(6) Others|0.00||
|VI. Total comprehensive income|72,809,972.09|64,265,253.54|
|VII. Earnings per share|||
|1. Basic earnings per share|0.00||
|2. Diluted earnings per share|0.00||

Legal representative: Wang Li, Person in charge of accounting: Liu Zhijun, Responsible person of the accounting institution: Ying Huadong 7. Consolidated Cash Flow Statement from the Beginning of the Year to the End of the Report Period Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the previous period|
|I. Cash flow from operating activities:|||
|Cash received from sales of goods|||
||620,820,444.62|1,090,057,199.43|
|and rendering of services|||
|Net increase in deposits from|||
||0.00||
|customers and interbank|||
|Loans from central bank|0.00||
|Net increase in loans from other|||
||0.00||
|banks|||
|Cash received from premium of|||
||0.00||
|the original insurance contract|||
|Net cash received from reinsurance|||
||0.00||
|business|||
|Net increase in the deposit of the|||
||0.00||
|insured and investments|||

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Net increase in financial assets|||
|measured by fair value with changes|0.00||
|included in current gains and losses|||
|Cash received from interest and|||
||59,906,357.06|69,806,828.06|
|commissions|||
|Net increase in loans from other|||
||0.00||
|banks|||
|Net increase in redemption capital|0.00||
|Tax refunds|82,932,677.81|136,078,841.72|
|Other cash received from operating|||
||164,808,152.37|473,715,102.01|
|activities|||
|Subtotal of cash inflow from operating|||
||928,467,631.86|1,769,657,971.22|
|activities|||
|Cash paid for goods and service|709,962,609.24|1,172,208,970.95|
|Net increase in loans to customers|||
||-44,885,258.00|20,896,649.47|
|and advances|||
|Net increase in deposits with|||
||0.00||
|central bank and interbank|||
|Cash paid for indemnity payment|||
||0.00||
|of the original insurance contract|||
|Cash paid for interest and|||
||34,483.91|46,623.87|
|commissions|||
|Cash paid as insurance dividends|0.00||
|Cash paid to and on behalf of|||
||81,309,320.61|75,174,832.18|
|employees|||
|Taxes paid|68,911,874.10|75,501,049.15|
|(1) Other cash received from|||
||196,562,398.65|472,106,815.05|
|operating activities|||
|Subtotal of cash outflow in operating|||
||1,011,895,428.51|1,815,934,940.67|
|activities|||
|Net cash flow from operating activities|-83,427,796.65|-46,276,969.45|
|III. Cash flow from financing activities:|||
|Cash received from withdrawal of|||
||601,902,098.00|1,689,700,000.00|
|investment|||
|Cash received from investment|||
||10,034,062.48|14,402,007.18|
|income|||
|Net cash received from disposal of|||
||62,000.00|34,082.50|
|fixed assets, intangible assets and other|||

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
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|-|-|-|
|long-term assets|||
|Net cash received from disposal of|||
||0.00||
|subsidiaries and other business units|||
|Other cash received from financing|||
||0.00||
|activities|||
|Subtotal of cash inflow from financing|||
||611,998,160.48|1,704,136,089.68|
|activities|||
|Cash paid for purchase and|||
|construction of fixed assets, intangible|7,074,145.94|14,550,969.56|
|assets and other long-term assets|||
|Cash paid for investment|493,604,260.00|1,738,300,000.00|
|Net increase in mortgage loans|0.00||
|Net cash paid for acquisition of|||
||0.00||
|subsidiaries and other business units|||
|Other cash paid for investment|||
||0.00|0.00|
|activities|||
|Subtotal of cash outflow in financing|||
||500,678,405.94|1,752,850,969.56|
|activities|||
|Net cash flow arising from financing|||
||111,319,754.54|-48,714,879.88|
|activities|||
|III. Cash flow from financing activities:|||
|Cash received by absorbing|||
||0.00||
|investment|||
|Including: Cash received by|||
|subsidiaries from investment of|0.00||
|minority shareholders|||
|Borrowings received|334,420,000.00|424,000,000.00|
|Cash received from bond issue|0.00||
|Other cash received from financing|||
||7,812.30||
|activities|||
|Subtotal of cash inflow from financing|||
||334,427,812.30|424,000,000.00|
|activities|||
|Cash paid for debt repayment|392,575,984.18|466,882,492.87|
|Cash paid for dividend and profit|||
||45,241,043.09|38,658,807.17|
|distribution or interest payment|||
|Including: Dividends and profit|||
|paid by subsidiaries to minority|11,943,582.73|12,653,693.04|
|shareholders|||

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Other cash paid for financing|||
||1,674,692.51|58,656,972.92|
|activities|||
|Subtotal of cash outflow in financing|||
||439,491,719.78|564,198,272.96|
|activities|||
|Net cash flow arising from financing|||
||-105,063,907.48|-140,198,272.96|
|activities|||
|IV. Influence of exchange rate|||
||17.80|1.27|
|fluctuation on cash and cash equivalents|||
|V. Net increase of cash and cash|||
||-77,171,931.79|-235,190,121.02|
|equivalents|||
|Add: Opening balance of cash and|||
||275,523,429.10|382,056,680.70|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||198,351,497.31|146,866,559.68|
|equivalents|||

Legal representative: Wang Li, Person in charge of accounting: Liu Zhijun, Responsible person of the accounting institution: Ying Huadong 8. Cash Flow Statement of the Parent Company from the Beginning of the Year to the End of the Report Period
Unit: Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the previous period|
|I. Cash flow from operating activities:|||
|Cash received from sales of goods|||
||68,449,051.92|80,095,769.61|
|and rendering of services|||
|Tax refunds|0.00||
|Other cash received from operating|||
||74,990,711.78|448,002,674.23|
|activities|||
|Subtotal of cash inflow from operating|||
||143,439,763.70|528,098,443.84|
|activities|||
|Cash paid for goods and service|54,972,750.33|44,476,025.49|
|Cash paid to and on behalf of|||
||33,396,939.07|26,658,556.47|
|employees|||
|Taxes paid|16,836,827.07|31,069,803.90|
|Other cash received from operating|||
||185,978,879.39|556,222,721.17|
|activities|||
|Subtotal of cash outflow in operating|||
||291,185,395.86|658,427,107.03|
|activities|||

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Net cash flow from operating activities|-147,745,632.16|-130,328,663.19|
|II. Cash flow from financing activities:|||
|Cash received from withdrawal of|||
||699,000,000.00|1,582,100,000.00|
|investment|||
|Cash received from investment|||
||49,603,558.49|61,504,585.65|
|income|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|0.00||
|long-term assets|||
|Net cash received from disposal of|||
||0.00||
|subsidiaries and other business units|||
|Other cash received from financing|||
||0.00||
|activities|||
|Subtotal of cash inflow from financing|||
||748,603,558.49|1,643,604,585.65|
|activities|||
|Cash paid for purchase and|||
|construction of fixed assets, intangible|1,802,351.46|1,082,359.00|
|assets and other long-term assets|||
|Cash paid for investment|605,000,000.00|1,609,600,000.00|
|Net cash paid for acquisition of|||
||0.00||
|subsidiaries and other business units|||
|Other cash paid for investment|||
||0.00||
|activities|||
|Subtotal of cash outflow in financing|||
||606,802,351.46|1,610,682,359.00|
|activities|||
|Net cash flow arising from investment|||
||141,801,207.03|32,922,226.65|
|activities|||
|III. Cash flow from financing activities:|||
|Cash received by absorbing|||
||0.00||
|investment|||
|Borrowings received|290,000,000.00|315,000,000.00|
|Cash received from bond issue|0.00||
|Other cash received from financing|||
||7,812.30||
|activities|||
|Subtotal of cash inflow from financing|||
||290,007,812.30|315,000,000.00|
|activities|||
|Cash paid for debt repayment|315,000,000.00|350,000,000.00|
|Cash paid for dividend and profit|35,437,529.24|23,636,805.55|

Full text of Q3 2016 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|distribution or interest payment|||
|Other cash paid for financing|||
||0.00||
|activities|||
|Subtotal of cash outflow in financing|||
||350,437,529.24|373,636,805.55|
|activities|||
|Net cash flow arising from financing|||
||-60,429,716.94|-58,636,805.55|
|activities|||
|IV. Influence of exchange rate|||
||0.00|1.27|
|fluctuation on cash and cash equivalents|||
|V. Net increase of cash and cash|||
||-66,374,142.07|-156,043,240.82|
|equivalents|||
|Add: Opening balance of cash and|||
||186,369,470.58|204,395,253.65|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||119,995,328.51|48,352,012.83|
|equivalents|||

Legal representative: Wang Li, Person in charge of accounting: Liu Zhijun, Responsible person of the accounting institution: Ying Huadong II. Auditor's Report
Is the Quarter 3 Report audited?
□ Yes√ No
The Q3 Report of the Company has not been audited.