Summary of 2015 Annual Report of Shenzhen SEG Co., Ltd. Stock code: 000058, 200058 Stock abbreviation: SHEN SEG, SHEN SEG B Notice No.
Summary of Annual Report 2015 of Shenzhen SEG Co., Ltd. I. Important Notice
This summary is based on the full text of annual report. To totally understand the Company's operating results, financial position, and future development and plans, investors should carefully read the entire annual report through the media designated by China Securities Regulatory Commission (CSRC).
Statement of Objections by Director, Supervisor and Senior Executives
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|Name|Title|Content and Reason|

Statement
Except the following directors, all the directors have personally attend the meeting of the Board of Directors to deliberate on this annual report.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||Title of director not attended||||||||
|Name of director unattended||||||Cause of absence||Name of attorney||
|||||personally||||||
||Li Luoli||Independent director||B||usiness trip||Song Pingping|

 Non-standard audit opinions and tips
□ Applicable√ Not applicable
Plan of ordinary share profit distribution or plan of transferring capital reserve to share capital within the report period under deliberation of the Board of Directors
√ Applicable□ Not applicable
Is it required to transfer capital reserve to share capital?
□ Yes√ No
The ordinary share profit distribution plan passed by the Board of Directors is to issue cash RMB 0.30 (tax included) as dividends with 0 bonus shares per 10 shares (tax included) to all shareholders with 784,799,010 shares of share capital as the base without transferring the capital reserve to shares.
Preferred share profit distribution plan within the report period passed by the Board of Directors
□ Applicable□ Not applicable
Company Profile
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|-|-|-|-|-|
|Stock abbreviation|Shenzhen SEG, Shenzhen SEG B|Stock code||000058, 200058|
|Listed on|Shenzhen Stock Exchange||||
|Contact information|Secretary of the Board of Directors||Securities affairs representative||
|Name|Zheng Dan||Zhang Xin||
||31/F, Tower A, Stars Plaza, Huaqiang Road (N),Futian District, Shenzhen||31/F, Tower A, Stars Plaza, Huaqiang Road (N),Futian District, Shenzhen||
|Office address|||||
|Fax|0755-83975237||0755-83975237||
|Phone|0755-83747939||0755-83747939||
|E-mail|segcl@segcl.com.cn||segcl@segcl.com.cn||

II. Overview of Main Business or Product within Report Period
(I) Main business and operation model
Main business of the Company includes development and operation of specialized electronics market and supporting projects,
property lease service, trade and channel service, e-commerce, value-added microcredit service, and hotel service.
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||commercial real|
|electronic information industry and relevant||

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|-|-|
|estate|and Chuangpinhui|
|industries||

Summary of 2015 Annual Report of Shenzhen SEG Co., Ltd. platform, and creating a combined type operation mode with multipleindustries’ interaction involving maker demonstration, children experience, culture and education, entertainment and sports, intelligent science and technology, and e-sports games.
(II) Competition situation and development trend
In recent years, the development of the Internet - particularly the rapid development of mobile Internet and popularity of
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|-|-|
||has profoundly influenced people's thinking mode, behavioral pattern, shopping mode and consumption customs.|
|Meanwhile, the rapid development of e-finance, collection and application of big data, Internet of Things, cloud computing,||
|e-commerce oligopoly and vertical segmentation of e-commerce market have created many new business models and changed||
|consumption customs and impacted the traditional business model.||

 consumption demands in modern times. The physical electronics market that adopts traditional business and service models is declining in the technological revolution and is suffering impact to certain extent.
Toady the science and technology are developing rapidly, the physical electronics market is developing from a single mode to a commercial combination of electronics, science and technology, culture, catering and entertainment. An experiential, interactive and social business operation model has become a mainstream of the electronics market.
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|-|-|
||The Company's main business is involved in perfectly competitive industries. Significant changes in the external market|
|environment have brought more challenges to the Company's main business. The Company is urged to seek new strategic business||
|and new profit growth points through intensional innovation and extensional expansion and alliance between giants to effectively||
|strengthen core competences and promote the sustainable development.||

(III) Industrial position
Through 27-year hardworking operation in electronics market industry, ith rich market business resources and mature market operation and management experience, the Company has developed a professional electronics market chain that covers the Pearl River Delta, the Yangtze River Delta, and even the entire country. SEG Electronics Market has successfully combined IT complex self-construction, leasing and trusted management, combined market service and value-added financial service, and combined professional market, SEG factory store and distribution channels. SEG Electronics Market stood out as the largest specialized electronics markets in China and even in Asia covering electronic components, IT products, and communications products and has great brand influence at home and abroad.
III. Main Accounting Data and Financial Indexes
1. Main accounting data and financial indexes in recent three years
Are retrospective adjustments made to previous financial statements due to accounting policy changes or accounting errors?□ Yes√ No
Unit: RMB Yuan
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|-|-|-|-|-|
||||Year-on-year||
||2015|2014||2013|
||||increase/decrease||
|Operating income|741,533,676.93|681,343,920.99|8.83%|597,358,257.82|
|Net profit attributable to|74,242,090.49|48,380,294.05|||
||||53.46%|54,338,735.35|
|shareholders of the listed company|||||
|Net profit attributable to|||||
|shareholders of the listed company|||||
||84,931,560.68|45,920,252.23|84.95%|48,912,658.58|
|after deduction of non-recurring|||||
|gains and losses|||||
|Net cash flow from operating|-12,453,523.82|-427,933,620.94|||
||||-97.09%|-122,530,546.70|
|activities|||||
|Basic EPS (Yuan/Share)|0.0946|0.0616|53.57%|0.0692|
|Diluted EPS (Yuan/Share)|0.0946|0.0616|53.57%|0.0692|
|Weighted average ROE|5.36%|3.80%|1.56%|4.44%|
||||Year-on-year||
||End of 2015|End of 2014||End of 2013|
||||increase/decrease||
|Total assets|2,614,660,524.37|2,659,717,718.28|-1.69%|2,134,940,597.85|
|Net assets attributable to|1,475,126,229.16|1,298,970,719.85|||
||||13.56%|1,250,224,375.08|
|shareholders of the listed company|||||

Summary of 2015 Annual Report of Shenzhen SEG Co., Ltd. 2. Major quarterly accounting data
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Quarter 1|Quarter 2|Quarter 3|Quarter 4|
|Operating income|191,029,218.56|183,525,917.05|194,784,480.30|277,336,268.42|
|Net profit attributable to|21,348,553.12|13,557,580.49|7,280,509.44|32,160,825.24|
|shareholders of the listed company|||||
|Net profit attributable to|21,168,892.76|13,529,361.55|6,782,338.84|43,450,967.53|
|shareholders of the listed company|||||
|after deduction of non-recurring|||||
|gains and losses|||||
|Net cash flow from operating|-37,829,627.54|-60,758,206.08|52,310,864.17|33,823,445.63|
|activities|||||

Are there any significant differences between the financial indexes or their totals in the preceding table and those described in the disclosed quarterly reports or semi-annual reports?
□ Yes√ No
IV. Share Capital and Information on Shareholders
1. Number of ordinary shareholders and preferred shareholders restored with the voting right and particulars about shares held by top ten shareholders
Unit: Share
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|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Total number of||||
||||Total number of||||Total number of|||||||
|||||||||||preferred shareholders||||
|Total number|||ordinary||||preferred|||||||
|||||||||||restored with the||||
|of ordinary|||shareholders at the||||shareholders|||||||
|||||||||||voting rights at the end||||
|shareholders at|82,269||end of the month||87,327||restored with the||0||||0|
|||||||||||of the month||||
|the end of the|||immediately before||||voting rights at|||||||
|||||||||||immediately before the||||
|report period|||the disclosure of the||||the end of the|||||||
|||||||||||disclosure of the||||
||||annual report||||report period|||||||
|||||||||||annual report||||
|Particulars about shares held by top ten shareholders||||||||||||||
|||||||||Quantity of|||Information on pledged or frozen|||
|Name of||||Shareholding||||||||||
|||Nature of shareholder||||Total shares||restricted shares|||shares|||
|shareholder||||percentage||||||||||
|||||||||held|||Share status|Quantity||
|Shenzhen SEGGroup Co., Ltd.||State-owned legalperson||30.24%||237,359,666||0||||||
|Liu Guocheng||Domestic naturalperson||0.85%||6,691,302||0||||||
|Liu Guohong||Domestic naturalperson||0.43%||3,354,558||0||||||
|Zeng Ying||Domestic naturalperson||0.42%||3,300,000||0||||||
|Gong Qianhua||Overseas naturalperson||0.37%||2,940,000||0||||||
|China SecuritiesFinance CorporationLimited||Domesticnon-state-owned legalperson||0.29%||2,271,900||0||||||
|NORGES BANK||Overseas legal person||0.24%||1,890,226||0||||||
|ARROWSTREETMULTISTRATEGYUMBRELLAPLC-ARROWSTREET EMERGINGMARKET FUND||Overseas legal person||0.23%||1,811,274||0||||||

Summary of 2015 Annual Report of Shenzhen SEG Co., Ltd.
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|-|-|-|-|-|
|III|||||
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|Overseas legal person|0.23%|1,780,969||
|Zheng Anzheng|Domestic naturalperson|0.22%|1,750,000|0|
|||Shenzhen SEG Group Co., Ltd has no associated relationship with other shareholders,|||
|Explanations on the association relationship||nor it is a concerted action unit as described by the Management Methods for|||
|or concerted action among the||Disclosure of Information on Changes of Shareholding Status of Shareholders of|||
|above-mentioned shareholders||Listed Companies It is unknown whether other shareholders have an associated|||
|||relationship or are concerted action units or not.|||
|||Among the above-mentioned top 10 shareholders, Zheng Anzheng holds 0 shares of|||
|Information of the shareholders|||||
|||the Company by the ordinary account and 1,750,000 shares by the credit account of|||
|participating in financing business (if any)|||||
|||the financing bill investor, totaling 1,750,000 shares of the Company.|||

2. Total number of preferential shareholders and information of top ten preferential shareholders
□ Applicable√ Not applicable
No shareholders hold preferred shares in the report period.
3. Block diagram of the property rights and controlling relationship between the Company and its actual controllers
State-owned Assets
Supervision and
Shenzhen SEG Yuanzhi China Orient Asset China Great Wall Asset
Administration Commission
Investment Co., Ltd. Management Corporation Management Corporation of Shenzhen Municipality
Shenzhen SEG Group Co., Ltd.
Shenzhen SEG Group Co., Ltd.
Shenzhen SEG Co., Ltd.
V. Management Discussion and Analysis
1. Overview of operation within report period
In 2015, the world economy remains being profoundly adjusted, and China's economy witnesses the critical phase of restructuring and transformation. Trending decline of potential growth rate together with long-term structural and short-term periodical problems aggravates the economic downturn. On the other hand, confronted with the economic downturn, China continues proactive fiscal policies and stable monetary policies to boost the real economy, advances economic restructuring, emphasizes the power of consumption to promote economic growth, and advocates the concepts of "Public Enterpreneurship and Mass Innovation"
and the“Internet+" to solve the problems of slowdown in economic growth as well as economic restructuring, transformation and
upgrading by deepening reforms and innovation.
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||The Company has re-positioned its existing business according to its advantages and realities. In 2015, thanks to joint efforts|
|made by the Company and investors, the Company witnessed stable growth and intensified efforts in industrial transformation and||

Summary of 2015 Annual Report of Shenzhen SEG Co., Ltd. upgrading as well as operation model innovation.
During the report period, the Company achieved a total operating income of RMB 846,675,900, a12.53% increase over the previous year, mainly due to: (1) substantial increase in the income of the small loan business; (2) substantial increase in the income of the microcredit; and (3) growth in the income of property rental and hotel business.
During the report period, the Company achieved a total profit of RMB 143,068,600, a28.01% increase over the previous year, mainly due to: (1) increase in the income and profit of the small loan business; (2) Huakong SEG holding20% shares made profit within the report period, contributing RMB 1,400,000 to investment income of the Company, while Huakong SEG suffered losses within the same period last year, which reduced the investment income of the Company.
2. Is there any significant change in the main business within the report period?
□ Yes√ No
3. Major products taking over10% of the revenue or profit from main businesses
□ Applicable√ Not applicable
4. Is there any noteworthy seasonal or periodical characteristics?
□ Yes√ No
5. Information on operating income, operating cost, total net profit for ordinary shareholders of listed companies or significant changes within the previous report period
□ Applicable√ Not applicable
6. Information on listing suspension or abortion
□ Applicable√ Not applicable
VI. Financial Report Related Issues
1. Information on changes in accounting policies, accounting estimates and accounting methods compared with the financial reports of 2014
□ Applicable√ Not applicable
There is no change in the Company's accounting policies, accounting estimates and accounting methods in the report period. 2. Information on retroactive restatements in corrections of major accounting errors in the report period□ Applicable√ Not applicable
There is no retrospective restatement due to corrections on significant accounting errors in the report period.
3. Information on changes in the scope of consolidation compared with the financial report of 2014
□ Applicable√ Not applicable
There is no change in the scope of consolidation in the report period.
4. Explanations of the Board of Directors and Board of Supervisors to the Non-standard Audit Report made by the accounting firm in the report period
□ Applicable√ Not applicable