Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd. Shenzhen SEG Co., Ltd.
2017 Q1 Report
April 2017
Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd. Chapter 1 Important Notice and Definition
The Board of Directors, the Board of Supervisors, the directors, the supervisors, and the senior executives guarantee that the quarterly report is authentic, accurate, and complete, and that it has no false records, misleading statements or major omissions, and they undertake joint and several legal liabilities.
All directors have attended the meeting of the Board of Directors and reviewed the quarterly report.
Chairman of the Board Wang Li, 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 2017 Q1 Report of Shenzhen SEG Co., Ltd. Definition
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|-|-|-|
|Definition|Refers to|Description|
|This Company, the Company|refers to|Shenzhen SEG Co., Ltd.|
|Shenzhen SEG Group Co., Ltd.|refers to|Shenzhen SEG Group Co., Ltd.|
|Suzhou SEG|refers to|Suzhou SEG Electronics Market Management Co., Ltd.|
|SEG Industry|refers to|Shenzhen SEG Industrial Investment Co., Ltd.|
|Nanning SEG|refers to|Nanning SEG Digital Plaza Management Co., Ltd.|
|SEG Longyan Technology|refers to|Shenzhen SEG Longyan Energy Technology Co., Ltd.|
|SEG Real Estate Investment|refers to|Shenzhen SEG Real Estate Investment Co., Ltd.|
|SEG Kangle|refers to|Shenzhen SEG Kangle Enterprise Development Co., Ltd.|
|SEG Property Development|refers to|Shenzhen SEG Property Development Co., Ltd.|
|SegMaker|refers to|Shenzhen SegMaker Co., Ltd.|
|SEG E-commerce|refers to|Shenzhen SEG E-commerce Co., Ltd.|
|SEG Credit|refers to|Shenzhen SEG Credit Co., Ltd.|
|Shenzhen Branch of Huarong Asset|refers to|Shenzhen Branch of China Huarong Asset Management Co., Ltd.|
|SEG Lianzhong|refers to|Shenzhen SEG Lianzhong Internet Technology Co., Ltd.|
|||State-owned Assets Supervision and Administration Commission of|
|Shenzhen SASAC|refers to||
|||Shenzhen|
|CSRC|refers to|China Securities Regulatory Commission|
|Unless otherwise specified, the amount referred|||
||refers to|Amount in RMB|
|to in the report|||

Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd. Chapter 2 Basic Information about the Company
I. Major accounting data and financial indexes
Are retrospective adjustments made to previous financial statements of the Company due to accounting policy changes or accounting errors?
√Yes□No
||||||||
|-|-|-|-|-|-|-|
|||||||Year-on-year|
||||Amount of the same period of the|||increase/decrease|
|||Amount of the report|previous year|||in the report|
|||period||||period|
||||Before||After||
|||||||After adjustment|
||||adjustment||adjustment||
|Operating income (Yuan)|317,456,442.86||191,126,945.65|438,455,160.52||-27.60%|
|Net profit attributable to shareholders of|31,609,057.25|||91,324,739.57|||
||||17,696,110.04|||--65.39%|
|the listed company (Yuan)|||||||
|Net profit attributable to shareholders of|||||||
|the listed company after deduction of||30,418,650.93|17,696,110.04||55,381,307.31|-45.07%|
|non-recurring gains and losses (Yuan)|||||||
|Net cash flow arising from operating|44,232,089.23|||-81,678,997.79|||
||||-30,744,760.42|||--|
|activities (Yuan)|||||||
|Basic EPS (Yuan/Share)|0.0256||0.0225|0.0739||-65.36%|
|Diluted EPS (Yuan/Share)|0.0256||0.0225|0.0739||-65.36%|
|Weighted average ROE||1.50%|1.19%||4.08%|-2.58%|
|||||||Year-on-year|
||||Amount at the end of the previous|||increase/decrease|
|||Amount at the end of the|year|||in the report|
|||report period||||period|
||||Before||After||
|||||||After adjustment|
||||adjustment||adjustment||
||7,385,516,773.94||2,548,276,265.|6,972,216,296.97|||
|Total assets (Yuan)||||||5.93%|
||||32||||
|Net assets attributable to shareholders of|1,782,928,320.23||1,548,200,647.|2,417,833,544.09|||
|||||||-26.26%|
|the listed company (Yuan)|||55||||

Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd. According to the Reply from Shenzhen SASAC to Approve Shenzhen SEG Co., Ltd. to Issue Shares to Purchase Assets and Raising Supporting Funds from Shenzhen SEG Group Co., Ltd.,(Z. J. X. K.[2017] No.21), the Company has issued 450,857,239 shares to the controlling shareholder Shenzhen SEG Group Co., Ltd. to purchase the assets of the said four object companies. Such a case of asset acquisition belongs to the merger of enterprises under the same control. Thus, according to the No.20– Enterprises Merge of Accounting Standards for Business Enterprises (ASBE), theCompany’s financial statements should be retroactively adjusted.
The cause why the net profit attributable to the owner of parent company decreased by65.39% compared with that of last year (after adjustment) is that SEG Real Estate transferred 48 sets of real estate and received the non-operating revenue of 60.59 million Yuan whereas there was no such revenue in the report period. In addition, part of real estate development projects of SEG Real Estate has not yet reached the time-point for recognizing income in the report period. Therefore, the amount of pre-sales already received has not been transferred into income for accounting in this report period, affecting the profit of the current period to some extent. In the future, along side with the recognition of the said business income step by step, the performance of the Company will be improved effectively.
The net profit attributable to the parent company in the report period (after deducting non-recurring items) decreased by45.07%, compared with that in the same period of last year (after adjustment). The causes are as follows. 1. In the same period of last year, there was considerable profit and loss from carrying over the house payment of Huizhou Qunxing real estate project of SEG Real Estate, whereas in the report period, such house payment became less because the sales of that project entered into the ending stage. In addition, although the New City Plaza project of SEG Real Estate cannot satisfy the conditions of recognizing income in the report period, it is estimated that from the fourth quarter of the year 2017, this project will start partly carrying over the profit and loss from house payment. 2. Impacted by macro-economy and because of the interest-rate reduction, the net profit of SEGCredit’s business decreased by 9 million Yuan. 3. Nantong SEG Times Plaza did not start operation until the end of the year 2016 but the expenses of market promotion in the earlier stage of operation was quite large, resulting in the net profit of the Company decreased by 2.95 million Yuan.
Items and amount of non-recurring gains and losses
√Applicable□ Not Applicable
Unit: Yuan
||||
|-|-|-|
||Amount from the||
|Item|beginning of year to the|Remarks|
||end of the period||
|Profit or loss from disposing non-current assets (including the|||
||-11,548.10||
|charge against the provisions for asset impairment withdrawn)|||
|Subsidy from government calculated into the profit or loss of|||
|||Funds from the|
|current period (excluding the government subsidy that closely|||
|||construction-supporting project|
|relates to the Company’s business and is enjoyed according to|474,999.99||
|||of Nantong SEG Electronics|
|the unified standard quota of the state or on the basis of fixed|||
|||Market|
|quantity)|||
|Other non-operating incomes and expenses except for the||Mainly the income from|
||1,229,947.96||
|above-mentioned||liquidated damages|
|Less: Amount affected by income tax|411,639.86||

Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd.
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|-|-|-|-|
|Amount affected by the equity of the minority||||
||91,353.6|7||
|shareholders (after-tax)||||
|合计 Total|1,190,406.3|2|--|

An explanation shall be made with regard to the Company's considerations for defining non-recurring profit and loss according to the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Securities to the Public - Non-recurring Profit and Loss and the reason of classifying the non-recurring profit and loss listed in this announcement as recurring.
□ Applicable√ Not applicable
In theCompany’s report period, no such cases exist that should be defined as recurring profit and loss, according to the classification standard of non-recurring profit and loss defined and listed in the above-mentioned Explanatory Announcement No.1 on Information Disclosure for Companies Offering Securities to the Public - Non-recurring Profit and Loss.
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||73,299||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|55.70%|688,216,905||450,857,239|||
|ChinaConstructionBank – Baoyingresourceoptimizationhybrid securitiesinvestment fund|Others|1.52%|18,842,044||0|||
|Liu Guocheng|Domestic naturalperson|0.55%|6,804,502||0|||
|Zhang Jiao|Domestic natural|0.33%|4,046,989||0|||

Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd.
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|-|-|-|-|-|-|-|
||person||||||
|Liu Guohong|Overseas naturalperson|0.27%|3,295,658|0|||
|Gong Qianhua|Domestic naturalperson|0.24%|2,940,000|0|||
|Zeng Ying|Domestic naturalperson|0.19%|2,300,000|0|||
|China SecuritiesFinanceCorporationLimited|Domesticnon-state-ownedlegal person|0.18%|2,271,900|0|||
|NORGES BANK|Foreign legalperson|0.15%|1,890,226|0|||
|China Hi-techGroupCorporation|State-owned legalperson|0.12%|1,500,000|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||
|China Construction Bank – Baoyingresource optimization hybridsecurities investment fund||18,842,044|||||
||||||RMB ordinary||
|||||||18,842,044|
||||||shares||
|Liu Guocheng||6,804,502|||Domestically||
||||||listed foreign|6,804,502|
||||||shares||
|Zhang Jiao||4,046,989|||RMB ordinary||
|||||||4,046,989|
||||||shares||
|Liu Guohong||3,295,658|||Domestically||
||||||listed foreign|3,295,658|
||||||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 Finance||2,271,900|||RMB ordinary|2,271,900|

Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd.
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|-|-|-|-|
|Corporation Limited||shares||
|NORGES BANK|1,890,226|Domestically||
|||listed foreign|1,890,226|
|||shares||
|China Hi-tech Group Corporation|1,500,000|RMB ordinary||
||||1,500,000|
|||shares||
|Explanations on the association|Shenzhen SEG Group Co., Ltd. has no association relationship with other shareholders and is|||
|relationship or concerted action|not a person acting in concert with other shareholders as specified in the Management|||
|among the above-mentioned|Methods for Disclosure of Information on Changes of Shareholding Status of Shareholders of|||
|shareholders|Listed Companies. It is unclear whether other shareholders are persons acting in concert.|||
|Information on top 10 ordinary|In the foregoing top 10 shareholders, Zhang Jiao holds 0 share of the Company in the|||
|shareholders participating in|ordinary account and 4,046,989 shares in the margin trading investor credit account, which|||
|securities margin trading (if any)|are 4,046,989 shares in total.|||

Did top 10 ordinary shareholders of the Company or top 10 ordinary shareholders of non-restricted shares conduct agreed repurchase transactions in the report period?
□ Yes√ No
TheCompany’s top 10 ordinary shareholders or the top 10 shareholders of non-restricted shares did not conduct any agreed repurchase transaction in the report period.
2. Total number of preferred shareholders and shares held by top 10 preferred shareholders
□ Applicable√ Not applicable
Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd. Chapter 3 Important Matters
I. Changes in main financial data and financial indicators of the report period and reasons√ Applicable□ Not applicable
(I) Items in Consolidated Balance Sheet Statement
Unit: Yuan
||||||
|-|-|-|-|-|
|Item|Closing balance|Opening balance|Difference|+/- % year-on-year|
|Loans to other banks|-|40,000,000.00|-40,000,000.00|-100.00%|
|Notes receivable|150,000.00|100,792.00|49,208.00|48.82%|
|Interest receivable|-|287,698.63|-287,698.63|-100.00%|
|Other non-current assets||13,804,660.46|-13,804,660.46|-100.00%|
|Short-term borrowing|485,000,000.00|355,000,000.00|130,000,000.00|36.62%|
|Payroll payable|18,354,882.09|38,282,699.37|-19,927,817.28|-52.05%|
|Dividends payable|3,162,970.78|15,132,970.78|-11,970,000.00|-79.10%|
|Other payables|1,539,360,478.91|872,477,573.33|666,882,905.58|76.44%|
|Share capital|1,235,656,249.00|784,799,010.00|450,857,239.00|57.45%|
|Capital reserve|-|995,524,226.66|-995,524,226.66|-100.00%|
|Surplus reserve||121,803,040.24|-121,803,040.24|-100.00%|

 1. The loans to other banks decreased by 40,000,000 Yuan compared with that of last year with a fall of100%. The main cause is theCompany’s holding subsidiary SEG Credit took back in the report period the loans to other banks for the development of its own small credit business.
2. The notes receivable increased by 49,208 Yuan compared with that of last year, with a rise of48.82%. The main cause is the Company increased in the report period the rents received from clients paid by thebank’s acceptance bill.
3. The interest receivable decreased by 287,698.63 Yuan compared with that of last year, with a fall of100%. The main cause is the Company received in the report period the interests of financing from banks, which had not received yet by the beginning of the year.
4. The other non-current assets decreased by 13,804,660.46 Yuan compared with that of last year, with a fall of100%. The main causes are 1) Dongmen Branch of Mellow Orange Business Hotel of SEG Baohua, theCompany’s holding subsidiary, opened, and the decoration expenses in the earlier stage has been transferred into long-term unamortized expenses for business accounting; 2) The decoration and transformation engineering of
electronics market has been finished, so the expenses of decoration engineering has also been transferred into
long-term unamortized expenses for business accounting.
5. The short-term borrowing increased by 130,000,000 Yuan compared with that of last year, with a rise of
Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd.36.62%. The main cause is the Company increased bank loans in the report period.
6. The payroll payable decreased by 19,927,817.28 Yuan compared with that of last year, with a fall of52.05%. The main cause is the Company paid in the report period for part of salaries and bonus withdrawn in last year.
7. The dividends payable decreased by 11,970,000 Yuan compared with that of last year, with a fall of79.1%. The main cause is SEG credit paid in the report period the minority shareholders for dividends of 11,970,000 Yuan.
8. The other payables increased by 666,882,905.58 Yuan compared with that of last year, with a rise of76.44%. The main cause is the Company formed in the report period a consideration in cash of 666,882,905.58 Yuan, which is payable but has not been paid, derived from introducing shares to the holding shareholder SEG Group to acquire assets of the latter because of implementing major asset restructuring.
9. The share capital increased by 450,857,239 Yuan compared with that of last year, with a rise of57.45%. The main cause is the Company introduced in the report period 450,857,239 shares to SEG Group to acquire underlying asset because of implementing major asset restructuring.
10. The capital reserve decreased by 995,524,226.66 Yuan compared with that of last year, with a fall of100%. The main cause is the Company introduced in the report period the shares to the holding shareholder SEG Group to acquire the equity of the four object companies because of implementing major asset restructuring, belonging to the merge of enterprises under the same control. TheCompany’s financial statements are adjusted retroactively. The opening balance of capital reserve comprises the capital stock and considerations which are not adjusted retroactively. The capital stock added on introduction basis and its considerations have been booked into account, thus this item decreased after adjustment.
11. The surplus reserve decreased by 121,803,040.24 Yuan compared with that of last year, with a fall of100%. The main cause is the Company introduced in the report period the shares to the holding shareholder SEG Group to acquire the equity of the four object companies because of implementing major asset restructuring, belonging to the merge of enterprises under the same control. According to ASBE, the Company took the book portion ofowner’s equity of the object companies as the initial cost of investment in long-term equity, and the difference between the long-term investment in equity and the sum of the book value of shares issued and considerations is to write down the capital reserve, and this item decreased after adjustment because the capital reserve is less than the difference and not enough for such a writing-down.
(II) Items in Consolidated Profit Statement
Unit: Yuan
||||||
|-|-|-|-|-|
|Item|Amount incurred in thecurrent period|Amount incurred in thesame period of last year(after adjustment)|Difference|+/- % year-on-year|
|Service charges and commissionsincome|320,245.33|2,204,500.00|-1,884,254.67|-85.47%|
|Interest expenses|0.00|445,888.89|-445,888.89|-100.00%|
|Operating tax and surcharges|6,678,270.88|30,507,163.47|-23,828,892.59|-78.11%|
|Loss from asset impairment|0.00|192,094.76|-192,094.76|-100.00%|
|Income from investment|544,597.03|1,445,145.44|-900,548.41|-62.32%|

Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd.
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|-|-|-|-|-|
|Non-operating revenue|1,841,331.56|60,886,048.66|-59,044,717.10|-96.98%|
|Income tax|18,096,458.88|46,992,683.69|-28,896,224.81|-61.49%|
|Net profit attributable to owners ofthe parent company|31,609,057.25|91,324,739.57|-59,715,682.32|-65.39%|
|Profit and loss of minorityshareholders|8,597,963.44|26,805,401.86|-18,207,438.43|-67.92%|
|Other comprehensive incomes|-43,532.53|-129,709.91|86,177.38|-66.44%|

 1. The Service charges and commissions income decreased by 1,884,254.67 Yuan compared with that of last year, with a fall of85.47%. The main cause is the consulting business of SEG Credit declined in the report period. 2. The interest expenses decreased by 445,888.89 Yuan compared with that of last year, with a fall of100%. The main cause is SEG Credit decreased in the report period the borrowings from banks compared with that of last year and correspondingly reduced the expenses of borrowing interests.
3. The operating tax and surcharges decreased by 23,828,892.59 Yuan compared with that of last year, with a fall of78.11%. The main cause is the Company paid for VAT in the report period, whereas in the same period of last year, the Company paid for business tax for the business of real estate development, electronics market and property management and finance business before the reform of replacing business tax with VAT. VAT is one kind of taxes excluded in price and is not listed in the profit statement, while the business tax is one kind of taxes included in the calculated price and booked in the item of tax and surcharges.
4. The loss from asset impairment decreased by 192,094.76 Yuan compared with that of last year, with a fall of100%. The main cause is SEG Credit withdrew provisions for losses from loans, but nothing happened in this item in the report period.
5. The income from investment decreased by 900,548.41 Yuan compared with that of last year, with a fall of62.32%. The main cause is the yield rate of theCompany’s bank financing became lower.
6. The non-operating revenue decreased by 59,044,717.10 Yuan compared with that of last year, with a fall of96.98%. The main cause is SEG Real Estate received the non-operating revenue of 60.59 million Yuan after transferred 48 sets of real estate in the same period of last year, whereas there was no such revenue in the report period.
7. The income tax decreased by 28,896,224.81 Yuan compared with that of last year, with a fall of61.49%. The main cause is SEG Real Estate received the non-operating revenue of 60.59 million Yuan after transferred 48 sets of real estate in the same period of last year, thus the expenses of income tax increased correspondingly. However, no such expenses from income tax from selling real estate happened in the report period.
8. The net profit attributable to owners of the parent company decreased by 59,715,682.32 Yuan compared with that of last year, with a fall of65.39%. The main cause is SEG Real Estate received the non-operating revenue of 60.59 million Yuan after transferred 48 sets of real estate in the same period of last year, but no such incomes happened in the report period. In addition, part of real estate development projects of SEG Real Estate has not yet reached the time-point for recognizing income in the report period. Therefore, the amount of pre-sales already received has not been transferred into income for accounting in this report period, affecting the profit of the current period to some extent. In the future, along side with the recognition of the said business income step by step, the performance of the Company will be improved effectively.
9. The profit and loss of minority shareholders decreased by 18,207,438.43 Yuan compared with that of last
year, with a fall of67.92%. The main cause is the profit from selling real estate of SEG Real Estate and that from
Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd. small credit business of SEG Credit dropped dramatically in the report period.
10. The other comprehensive incomes increased by 86,177.38 Yuan compared with that of last year. The main cause is the share price of Youhao Group plummeted significantly compared with that calculated as the financial asset available for sale according to fair value in the same period of last year. However, the range of price drop became smaller in the report period.
(III) Items in Consolidated Cash Flow Statement
Unit: Yuan
||||||
|-|-|-|-|-|
|Item|Amount incurred inthe current period|Amount incurred in thesame period of last year(after adjustment)|Difference|+/- % year-on-year|
|Tax refunds|0.00|15,225,827.36|-15,225,827.36|-100.00%|
|Other cash received from operatingactivities|151,852,405.60|233,315,459.69|-81,463,054.09|-34.92%|
|Cash paid for goods and service|252,581,380.78|428,469,612.42|-175,888,231.64|-41.05%|
|Net increase in loans to customers andadvances|-445,447.60|10,708,000.00|-11,153,447.60|-104.16%|
|Taxes paid|77,195,936.81|49,395,417.67|27,800,519.14|56.28%|
|Cash received from withdrawal ofinvestment|598,000,000.00|349,300,000.00|248,700,000.00|71.20%|
|Net cash received from disposal of fixedassets, intangible assets and otherlong-term assets|12,781,888.65|3,915,829.59|8,866,059.06|226.42%|
|Cash paid for investment|514,980,001.00|317,800,000.00|197,180,001.00|62.05%|
|Borrowings received|370,000,000.00|550,920,000.00|-180,920,000.00|-32.84%|
|Cash paid for debt repayment|223,435,625.02|359,000,000.00|-135,564,374.98|-37.76%|
|Cash paid for dividend and profitdistribution or interest payment|39,883,427.10|58,875,564.11|-18,992,137.01|-32.26%|
|Other cash paid for financing activities|5,180,964.31|75,642,660.55|-70,461,696.24|-93.15%|

 1. The tax refunds decreased by 15,225,827.36 Yuan compared with that of last year, with a fall of100%. The main cause is SEG E-commerce received in the same period of last year the tax refunds of the said amount from export for supply-chain business. The Company completed the procedures of equity transfer in 2016, so the cash flow of SEG E-commerce was no longer consolidated into theCompany’s Cash Flow Statement in the report period.
2. The other cash received from operating activities decreased by 81,463,054.09 Yuan compared with the same period of last year, with a fall of34.92%. The main cause is the settlement amount of SEG E-commerce for
supply-chain business was 104.1 million Yuan in the same period of last year, whereas the Company completed
the procedures of equity transfer in 2016, so the cash flow of SEG E-commerce was no longer consolidated into
Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd. theCompany’s Cash Flow Statement in the report period.
3. The cash paid for goods and service decreased by 175,888,231.64 Yuan compared with that of last year, with a fall of41.05%. The main cause is SEG E-commerce received 149.79 million Yuan of the payment for goods from domestic trade in the same period of last year, while the Company completed the procedures of equity transfer in 2016, so the cash flow of SEG E-commerce was no longer consolidated into theCompany’s Cash Flow Statement in the report period. The trade business of SEG Industrial shrank and the payment for goods dropped, leading to this item decreased by 235.2 million Yuan.
4. The net increase in loans to customers and advances decreased by 11,153,447.60 Yuan compared with that of last year, with a fall of104.16%. The main cause is the scale of loans issued by SEG Credit declined.
5. The taxes paid increased by 27,800,519.14 Yuan compared with that of last year, with a rise of56.28%. The main cause is SEG Real Estate increased the pre-sale of real estate as well as the pre-payment of tax.
6. The cash received from withdrawal of investment increased by 248,700,000.00 Yuan compared with that of last year, with a rise of71.2%. The main cause is the increase of principals of bank financing withdrawn by the Company in the report period.
7. The net cash received from disposal of fixed assets, intangible assets and other long-term assets increased by 8,866,059.06 Yuan compared with that of last year, with a rise of226.42%. The main cause is the increase of expenses of fixed assets purchased by the Company and the subsidiaries and of decoration at operating sites. 8. The cash paid for investment increased by 197,180,001.00 Yuan compared with that of last year, with a rise of62.05%. The main cause is the amount of theCompany’s financing in banks increased in a rolling type in the report period.
9. The borrowings received decreased by 180,920,000.00 Yuan compared with that of last year, with a fall of32.84%. The main cause is the bank loans received by the Company became less in the report period.
10. The cash paid for debt repayment decreased by 135,564,374.98 Yuan compared with that of last year, with a fall of37.76%. The main cause is the bank loans due repaid by Company reduced in the report period.
11. The cash paid for dividend and profit distribution or interest payment decreased by 18,992,137.01 Yuan compared with that of last year, with a fall of32.26%. The main cause is the dividends distributed by the company to the minority shareholders decreased.
12. Other cash paid for financing activities decreased by 70,461,696.24 Yuan compared with that of last year, with a fall of93.15%. The main cause is SEG E-commerce repaid the associated enterprises for borrowings and interests of 45.45 million Yuan in the same period of last year, whereas the cash flow of SEG E-commerce was no longer consolidated into theCompany’s Cash Flow Statement in the report period. Besides, SEG Real Estate repaid Zhuhai Minghao Group for the borrowing of 30 million Yuan in the same period of last year.
II. Progress and impacts of significant events and analysis of solutions
√ Applicable□ Not applicable
(I) Major assets restructuring
1. The Company launched a major assets restructuring plan in November 2015. According to the disclosed major assets restructuring report, the Company plans to acquire100% of the equity of SegMaker held by SEG Group,55% of the equity of SEG Kangle,100% of the equity of SEG Property Development, and79.02% of the equity of SEG Real Estate Investment by issuance of shares(86.90%) and payment of cash(13.10%). In order to
Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd. promote the integrated performance, the Company plans to raise supporting funds 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.
2. On January 17, 2017, the Company's application for issuing shares and paying cashes to acquire assets and raise supporting funds& connected transaction has been approved by the Approval on Shenzhen SEG Co., Ltd.'s Issuing Shares to Shenzhen SEG Group Co., Ltd. to Acquire Assets and Raise Supporting Funds (Z. J. X. K.[2017] No. 21).
3. On January 19, 2017, SEG Group transferred the subject assets related to share issuance and cash payment for assets acquisition. After the completion of alteration, the Company holds100% of the equity of SegMaker,55% of the equity of SEG Kangle,100% of the equity of SEG Property Development, and79.02% of the equity of SEG Real Estate.
4. On January 21, 2017, Da Hua Certified Public Accountants (Special General Partnership) hired by the Company verified newly-added capital stock of RMB 450,857,239 arising from share issuance of the Company, and issued a verification report (D. H. Y. Zi.[2017] No. 000044).
5. On February 15, 2017, the Company received the Confirmation of Acceptance of the Application for Stock Registration issued by Shenzhen Branch of China Securities Depository and Clearing Company Limited. 450,857,239 A shares were issued by the Company through private placement. The newly-added stocks are restricted outstanding shares and listed from March 6, 2017. As a result, SEG Group holds 688,216,905 shares of the Company, accounting for55.7%.
The Company will accelerate fund raising with relevant intermediaries and timely perform the obligation of information disclosure based on the progress.
After the said private placement, the core assets of SEG Group were injected into the listed company, reducing horizontal competition to the greatest extent. The listed company after restructuring will be based on electronics markets, commercial (industrial park) real estate, maker business, and CdTe film solar business, promote interactive development with multiple business models, comprehensively integrate business resources, build SEG new industrial eco-circle, create a diversified and strategic emerging industry development platform, and develop into a leader in high-end manufacturing and services.
In terms of transformation of the existing specific main business, the Company will be based on electronics markets, combine service advantages and customer resources of electronics markets, step up efforts to develop the maker business, culture and education, intelligent technology, sports and entertainment, virtual experience, e-sports, financial services, strategic emerging industries, high-end manufacturing and services, optimize and integrate the business chain systems, and implement industrial transformation and upgrading.
(II) Lawsuits
1. Lawsuits of Nanning SEG
The Company received the summon and civil complaint from the People's Court of Xingning District on September 26, 2016, which required the Company to appear at the court and respond to lawsuits (2016) G. 0102 M. C. No. 3653 (cause: dispute over the house leasing contract) and 2016) G. 0102 M. C. No. 3654 (dispute over the property service contract) against the Company on November 20, 2016. The case is pending as of the disclosure date of the report.
2. Arbitration and Lawsuit of Suzhou SEG
Zongheng International Electronic Expo City (Suzhou) Co., Ltd. ("Zongheng International") breached the Suzhou SEG Electronics Market Project Cooperation Agreement signed with Suzhou SEG on June 5, 2009. According to the dispute resolution terms in Article 7 (4) of the cooperation agreement, the Company applied for
Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd. arbitration to Beijing Arbitration Commission (case number: (2016) J. Z. A. Zi. No. 2294). Besides, a loan dispute arose between Suzhou SEG and Zongheng International, and Suzhou SEG filed a lawsuit against Zongheng International to the court (case number: 2016 S. 0505 M. C. No. 5176). As Suzhou SEG and Zongheng International reached a settlement intention on March 8, 2017, Suzhou SEG has suspended the arbitration and revoked the lawsuit against Zongheng International.
3. Lawsuits of SEG Industry
SEG Industry filed lawsuits to Futian District People's Court against Shenzhen Wonder Industrial Co., Ltd., Shenzhen Yixin Zhongtian Technology Co., Ltd., and their debt guarantors for their breach of the contract, at the same time, has applied to the court for preservation of properties of Shenzhen Wonder Industrial Co., Ltd., Shenzhen Yixin Zhongtian Technology Co., Ltd., and their debt guarantors. Futian District People's Court thought that the conditions of prosecution are met and put the cases on record (case number: (2017) Y. 0304 M. C. No. 5092, (2017) Y. 0304 M. C. No. 5088). The Company has disclosed relevant issues on designated information disclosure media on March 1, 2017. As of the day when this report is disclosed, the hearing had not yet been held. (III) Hongtu SEG Intelligent Industrial Investment Fund
Hongtu SEG Intelligent Industrial Investment Fund jointly initiated and established by the Company and Shenzhen Capital Group Co., Ltd. and Shenzhen Guiding Fund has a scale of RMB 300 million. Its main target of investment includes: Hongtu SEG Fund mainly for new intelligent electronic information industry, wearable intelligent devices, intelligent equipment, 3D printing, robot, VR/AR industry and Internet of things, Internet/mobile Internet+, cloud computation and projects with potentials for growth in relevant emerging industries of Shenzhen. As of the disclosure date of the report, the fund limited partnership ("Shenzhen Hongtu SEG Intelligent Industrial Investment Fund (Limited Partnership)") has been incorporated and relevant registration and record formalities are in progress.
||||
|-|-|-|
|||Inquiry Index for the Websites Disclosing the Temporary|
|Overview of Important Events|Disclosure Date||
|||Reports|
|1. Matters concerning the progress ofmajor assets restructuring||Announcement on Approval of the CSRC on Share Issuance and|
||January 18, 2017|Cash Payment to Acquire Assets and Raise Funds & Connected|
|||Transactions disclosed on http://www.cninfo.com.cn|
|||Report of Share Issuance and Cash Payment to Acquire Assets|
||January 18, 2017|and Raise Funds & Connected Transactions (Draft) disclosed on|
|||http://www.cninfo.com.cn|
|||Announcement on Share Issuance and Cash Payment to Acquire|
||January 25, 2017|Assets and Raise Funds & Subject Asset Transfer of Connected|
|||Transactions disclosed on http://www.cninfo.com.cn|
|2. Matters concerning the acquisition ofthe business license of SEG Lianzhong||Announcement on the Acquisition of the Business License of|
||February 11, 2017|Shenzhen SEG Lianzhong Internet Technology Co., Ltd.|
|||disclosed on http://www.cninfo.com.cn|
|3. Matters concerning the conclusion of thestrategic cooperation agreement betweenSEG Real Estate Investment and ShenzhenBranch of Huarong Asset||Announcement on the Conclusion of the Strategic Cooperation|
|||Agreement between SEG Real Estate Investment and Shenzhen|
||March 1, 2017||
|||Branch of Huarong Asset Management Co., Ltd. disclosed on|
|||http://www.cninfo.com.cn|

Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|4. Matters concerning the court'sacceptance of the lawsuit filed by SEGIndustry||Announcement on the Receipt of the Court's Notice on|
||March 1, 2017|Acceptance of the Lawsuit Filed by the Controlling Subsidiary|
|||disclosed on http://www.cninfo.com.cn|
|5. Matters concerning the progress ofmajor assets restructuring||Announcement on Share Issuance and Cash Payment to Acquire|
|||Assets and Raise Funds & Implementation of Connected|
||March 4, 2017||
|||Transactions & Offering of New Shares disclosed on|
|||http://www.cninfo.com.cn|
|6. Matters concerning SEG LongyanTechnology's bidding for the land inShenzhen-Shanwei Special CooperationZone|||
|||Announcement on Shenzhen SEG Longyan Energy Technology|
||March 14, 2017|Co., Ltd.'s Bidding for the Land disclosed on|
|||http://www.cninfo.com.cn|

III. Commitments not fulfilled in the report period by the actual controller of the Company, shareholders, buyers, or other related parties
□ Applicable√ Not applicable
IV. Estimation of operating results of January-June 2017
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
Estimation of operating results: they will sharply increase compared with the same period of last year (before adjustment).
Type of data filled in the performance forecast: exact number
||||||
|-|-|-|-|-|
|||Amount of the same|||
||Amount from the beginning||||
|||period of the previous|||
||of year to the end of the||Increase or decrease||
|||year before retroactive|||
||next report period||||
|||adjustment|||
|Accumulated net profit|||||
|estimated (ten thousand|4,700|2,685.63|Increase|75.01%|
|Yuan)|||||
|Basic EPS (Yuan/Share)|0.0380|0.0342|Increase|11.22%|
||1. The Company carried out major asset restructuring in the first quarter of 2017. The four object||||
||enterprises including SEG Real Estate, SEG Kangle, SegMaker and SEG Property completed the||||
||procedures of transferring assets on January 19, 2017. Accordingly, in 2017 the Company will||||
||book the underlying assets of the above-mentioned four enterprises into the consolidated financial||||
|Explanation of performance|||||
||statements. Therefore, the relevant profit and loss of these four subject enterprises from January||||
|forecast|||||
||to June, 2017 are added into this estimation of the performance.||||
||2. The net profit attributable to the listed company in the first half of the year 2017 (after||||
||deducting non-recurring profit and loss) will decrease by around 20%, compared with that in the||||
||same period of last year (after adjustment). The main cause is that in the same period of last year,||||

Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd.
||
|-|
|there was considerable profit and loss from carrying over the house payment of Huizhou Qunxing|
|real estate project of SEG Real Estate, whereas in the report period, such house payment became|
|less because the sales of that project entered into the ending stage; in addition, in the first half of|
|the year 2017, the New City Plaza project of SEG Real Estate cannot satisfy the conditions of|
|recognizing income, and it is estimated that from the fourth quarter of the year 2017, this project|
|will start partly carrying over the profit and loss from house payment.|
|3. The financial data of the above performance forecast has not been audited and will be subject|
|to that in 2017 semi-annual report to be disclosed at the scheduled time.|

V. Securities investment
√ Applicable□ Not applicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Gains|||
|||||||Ending||||||
|||||Initial|Initial||Ending||and|||
|||Short|Initial|||share-h||Closing||||
|||||share|share-h||share-h||losses|Accoun|Source|
|Stock|Stock|form of|investm|||olding||book||||
|||||quantit|olding||olding||in the|ting|of|
|type|code|the|ent cost|||quantit||value||||
|||||y|proporti||proporti||report|item|capital|
|||security|(Yuan)|||y||(Yuan)||||
|||||(shares)|on||on||period|||
|||||||(shares)||||||
||||||||||(Yuan)|||
|||||||||||Availab||
|||||||||||le-for-s||
|||Youhao|90,405.|||||625,03|||Origina|
|Share|600778|||60,683|0.04%|60,683|0.04%|||ale||
|||Group|00|||||4.90|||l share|
|||||||||||financia||
|||||||||||l assets||
|||||||||||Long-te||
||||204,86|||||171,62||rm||
|||Huakon||191,27||191,27|||-2,931,||Origina|
|Share|000068||4,058.2||19.00%||19.00%|0,501.7||equity||
|||g SEG||8,346||8,346|||731.52||l share|
||||9|||||0||investm||
|||||||||||ent||
|||||||||||Availab||
|||SEG||||||||le-for-s||
||||8,275,3|7,500,0||7,500,0||13,515,|||Origina|
|Share|832770|Navigat|||11.38%||11.38%|||ale||
||||21.43|00||00||392.83|||l share|
|||ions||||||||financia||
|||||||||||l assets||
||||213,22|198,83||198,83||185,76|-2,931,|||
|Total|||||--||--|||--|--|
||||9,784.7|9,029||9,029||0,929.4|731.52|||

Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd.
|||
|-|-|
|2|3|

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Shares|Sharehold||||Gains and|||
|||Short||||Shares|Sharehold|Closing||||
||||Initialinvestmentcost (Yuan)|held at|ing ratio||||losses in|||
|Stock|Stock|form of||||held at|ing ratio|book||Accounti|Source of|
|||||the|at the||||the report|||
|type|code|the||||the period|at the end|value||ng item|shares|
|||||beginning|beginning||||period|||
|||security||||end|of period|(Yuan)||||
|||||of period|of period||||(Yuan)|||
|Disclosure date of the||||||||||||
|announcement of the Board of||||||||||||
|Directors on the approval of||||||||||||
|securities investment||||||||||||
|Disclosure date of the||||||||||||
|announcement of the general||||||||||||
|meeting on the approval of||||||||||||
|securities investment (if any)||||||||||||

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 of major|
||||assets restructuring. The Company has|
|January 5, 2017|Phone call|Individual||
||||given a reply according to the actual|
||||progress disclosed.|
||||Inquire about the progress of major|
||||assets restructuring. The Company has|
|January 10, 2017|Phone call|Individual||
||||given a reply according to the actual|
||||progress disclosed.|
||||Inquire about the progress of major|
||||assets restructuring. The Company has|
|January 16, 2017|Phone call|Individual||
||||given a reply according to the actual|
||||progress status that has been disclosed.|

Full-text of 2017 Q1 Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
||||Inquire about the main business,|
||||transformation, and private placement of|
|February 8, 2017|Phone call|Individual|the Company. The Company has given a|
||||reply according to the actual progress|
||||disclosed.|
||||Inquire about the main business,|
||||transformation, and private placement of|
||||the Company. The Company has given a|
|February 22, 2017|On-site survey|Organization||
||||reply according to the actual situation|
||||and disclosed such information on|
||||irm.cninfo.com.cn .|
||||Inquire about the number of shareholders|
||||as of February 28. The Company has|
|February 28, 2017|Phone call|Individual|given a reply according to the register of|
||||shareholders released by the Securities|
||||Depository and Clearing Corporation.|
||||Inquire about the main business,|
||||transformation, and private placement of|
|March 10, 2017|Phone call|Individual|the Company. The Company has given a|
||||reply according to the actual progress|
||||disclosed.|
||||Inquire about the number of shareholders|
||||as of March 15.The Company has given|
|March 15, 2017|Phone call|Individual|a reply according to the register of|
||||shareholders released by the Securities|
||||Depository and Clearing Corporation.|
||||Inquire about the disclosure date of the|
||||annual report. The Company has replied|
|March 23, 2017|Phone call|Individual||
||||that the annual report will be disclosed|
||||on April 18, 2017.|

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 Q1 2017 Report of Shenzhen SEG Co., Ltd. Chapter 4 Financial Statements
I. Financial Statements
1. Consolidated Balance Sheet Statement
Prepared by: Shenzhen SEG Co., Ltd.
March 31, 2017
Unit: Yuan
|||||
|-|-|-|-|
|||Opening balance|Opening balance|
|Item|Closing balance|||
|||(before retroaction)|(after retroaction)|
|Current assets:||||
|Monetary funds|1,373,317,217.10|183,094,815.84|1,127,523,641.19|
|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|150,000.00|100,792.00|100,792.00|
|Accounts receivable|74,641,653.98|50,870,545.72|61,039,408.84|
|Advances|58,230,963.83|47,387,004.02|55,986,915.27|
|Premiums receivable||||
|Reinsurance accounts receivable||||
|Reinsurance deposit receivable||||
|Interest receivable|||287,698.63|
|Dividends receivable||||
|Other accounts receivable|213,977,976.46|63,183,612.96|192,306,868.60|
|Redemptory monetary capital||||
|for resale||||
|Inventory|3,607,105,982.62|602,098,738.92|3,378,950,342.26|
|Held-for-sale assets||||
|Non-current assets due within||||
|one year||||
|Other current assets|394,213,318.70|268,069,887.58|439,569,887.58|

Full text of Q1 2017 Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
|Total current assets|5,721,637,112.69|1,254,805,397.04|5,295,765,554.37|
|Non-current assets:||||
|Loans and advances issued|479,985,810.85|480,405,158.45|480,405,158.45|
|Financial assets available for||||
||34,478,683.41|34,478,683.41|34,478,683.41|
|sale||||
|Held-to-maturity investment||||
|Long-term receivables||||
|Long-term equity investment|201,386,462.87|183,649,044.67|203,657,322.72|
|Investment properties|700,997,492.84|425,169,768.62|708,482,985.89|
|Fixed assets|52,664,557.38|39,181,793.82|52,017,406.01|
|Construction in progress|38,963,872.39||30,602,682.00|
|Engineering materials||||
|Disposal of fixed assets||||
|Productive biological assets||||
|Oil & gas assets||||
|Intangible assets|2,559,488.28|1,251,991.68|2,681,527.40|
|Development expenses||||
|Goodwill|10,328,927.82|10,328,927.82|10,328,927.82|
|Long-term expenses to be||||
||114,310,416.49|94,320,491.68|111,787,439.52|
|amortized||||
|Deferred income tax assets|28,203,948.92|10,880,347.67|28,203,948.92|
|Other non-current assets||13,804,660.46|13,804,660.46|
|Total non-current assets|1,663,879,661.25|1,293,470,868.28|1,676,450,742.60|
|Total assets|7,385,516,773.94|2,548,276,265.32|6,972,216,296.97|
|Current liabilities:||||
|Short-term borrowing|485,000,000.00|355,000,000.00|355,000,000.00|
|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|||0.00|
|current gains and losses||||
|Derivative financial liabilities|||0.00|
|Notes payable|||0.00|

Full text of Q1 2017 Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
|Accounts payable|19,694,324.59|20,282,611.08|25,990,672.09|
|Advances from customers|1,048,025,264.89|116,529,761.27|935,199,020.97|
|Financial assets sold for||||
||||0.00|
|repurchase||||
|Service charges and||||
||||0.00|
|commissions payable||||
|Payroll payable|18,354,882.09|16,817,256.46|38,282,699.37|
|Taxes payable|238,160,238.82|46,917,032.07|216,486,426.84|
|Interest payable|4,338,891.02|475,177.74|4,234,977.77|
|Dividends payable|3,162,970.78|17,019,185.19|15,132,970.78|
|Other payables|1,539,360,478.91|190,643,502.25|872,477,573.33|
|Reinsurance accounts payable|||0.00|
|Insurance deposit|||0.00|
|Customer brokerage deposits|||0.00|
|Securities underwriting||||
||||0.00|
|brokerage deposits||||
|Held-for-sale liabilities|||0.00|
|Non-current liabilities due||||
||4,149,531.00||3,561,661.33|
|within one year||||
|Other current liabilities|3,416,498.45||0.00|
|Total current liabilities|3,363,663,080.55|763,684,526.06|2,466,366,002.48|
|Non-current liabilities:||||
|Long-term borrowing|1,546,000,000.00||1,518,000,000.00|
|Bonds payable|||0.00|
|Preferred stock|||0.00|
|Perpetual capital||||
||||0.00|
|securities||||
|Long-term payables|||0.00|
|Payroll payable|||0.00|
|Special payables|||0.00|
|Estimated liabilities|232,500.00||232,500.00|
|Deferred income|10,708,333.35|11,183,333.34|11,183,333.34|
|Deferred income tax liabilities|93,623,236.05|14,899,853.99|93,885,145.21|
|Other non-current liabilities|3,484,109.50||3,484,109.50|
|Total non-current liabilities|1,654,048,178.90|26,083,187.33|1,626,785,088.05|

Full text of Q1 2017 Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
|Total liabilities|5,017,711,259.45|789,767,713.39|4,093,151,090.53|
|Owners' equity:||||
|Share capital|1,235,656,249.00|784,799,010.00|784,799,010.00|
|Other equity instruments|||0.00|
|Preferred stock|||0.00|
|Perpetual capital||||
||||0.00|
|securities||||
|Capital reserve||495,759,877.42|995,524,226.66|
|Less: Treasury shares|||0.00|
|Other comprehensive income|251,982.41|296,235.62|296,235.62|
|Special reserve|||0.00|
|Surplus reserve||121,803,040.24|121,803,040.24|
|General risk provision|||0.00|
|Undistributed profits|547,020,088.82|145,542,484.27|515,411,031.57|
|Total owners' equity attributable to||||
||1,782,928,320.23|1,548,200,647.55|2,417,833,544.09|
|the parent company||||
|Minority shareholders' equity|584,877,194.26|210,307,904.38|461,231,662.35|
|Total owners' equity|2,367,805,514.49|1,758,508,551.93|2,879,065,206.44|
|Total liabilities and owners' equity|7,385,516,773.94|2,548,276,265.32|6,972,216,296.97|

 Legal representative: Wang Li Person in charge of accounting: Liu Zhijun Responsible person of the accounting institution: Ying Huadong 2. Balance Sheet Statement of the Parent Company
Unit: Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|221,460,539.51|90,504,836.76|
|Financial assets measured by fair value|||
|with changes included in current gains and||0.00|
|losses|||
|Derivative financial assets||0.00|
|Notes receivable||0.00|
|Accounts receivable|313,000.00|426,069.15|
|Advances|392,774.00|0.00|
|Interest receivable||0.00|

Full text of Q1 2017 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Dividends receivable||0.00|
|Other accounts receivable|798,616,127.25|724,658,970.18|
|Inventory|610,930.13|442,920.87|
|Held-for-sale assets||0.00|
|Non-current assets due within one year||0.00|
|Other current assets|295,442,281.49|438,146,382.10|
|Total current assets|1,316,835,652.38|1,254,179,179.06|
|Non-current assets:|||
|Financial assets available for sale|33,515,392.83|33,515,392.83|
|Held-to-maturity investment||0.00|
|Long-term receivables||0.00|
|Long-term equity investment|1,433,117,268.27|453,584,470.91|
|Investment properties|271,250,971.59|273,880,749.30|
|Fixed assets|18,860,348.81|19,149,224.71|
|Construction in progress||0.00|
|Engineering materials||0.00|
|Disposal of fixed assets||0.00|
|Productive biological assets||0.00|
|Oil & gas assets||0.00|
|Intangible assets|378,759.06|425,708.10|
|Development expenses||0.00|
|Goodwill||0.00|
|Long-term expenses to be amortized|7,164,714.00|7,743,293.52|
|Deferred income tax assets|8,664,455.49|8,664,455.49|
|Other non-current assets||0.00|
|Total non-current assets|1,772,951,910.05|796,963,294.86|
|Total assets|3,089,787,562.43|2,051,142,473.92|
|Current liabilities:|||
|Short-term borrowing|485,000,000.00|355,000,000.00|
|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|
|Accounts payable||155,213.00|

Full text of Q1 2017 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Advances from customers|28,197,891.56|25,448,125.00|
|Payroll payable|1,913,425.33|7,817,501.76|
|Taxes payable|23,638,068.02|23,485,483.97|
|Interest payable||475,177.74|
|Dividends payable|119,803.29|119,803.29|
|Other payables|738,220,592.53|75,858,657.13|
|Held-for-sale liabilities||0.00|
|Non-current liabilities due within one|||
|||0.00|
|year|||
|Other current liabilities||0.00|
|Total current liabilities|1,277,089,780.73|488,359,961.89|
|Non-current liabilities:|||
|Long-term borrowing|||
|Bonds payable|||
|Preferred stock|||
|Perpetual capital securities|||
|Long-term payables|||
|Payroll payable|||
|Special payables|||
|Estimated liabilities|||
|Deferred income|10,708,333.35|11,183,333.34|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|10,708,333.35|11,183,333.34|
|Total liabilities|1,287,798,114.08|499,543,295.23|
|Owners' equity:|||
|Share capital|1,235,656,249.00|784,799,010.00|
|Other equity instruments||0.00|
|Preferred stock||0.00|
|Perpetual capital securities||0.00|
|Capital reserve|279,796,427.79|498,654,523.66|
|Less: Treasury shares||0.00|
|Other comprehensive income|315.48|178.21|
|Special reserve||0.00|

Full text of Q1 2017 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Surplus reserve|121,803,040.24|121,803,040.24|
|Undistributed profits|164,733,415.84|146,342,426.58|
|Total owners' equity|1,801,989,448.35|1,551,599,178.69|
|Total liabilities and owners' equity|3,089,787,562.43|2,051,142,473.92|

 3. Consolidated Profit Statement
Unit: Yuan
|||||
|-|-|-|-|
|||Amount incurred in the|Amount incurred in the|
||Amount incurred in the|||
|Item||same period of last year|same period of last year|
||current period|||
|||(before retroaction)|(after retroaction)|
|I. Total operating revenue|331,231,936.34|207,691,338.31|453,789,232.95|
|Including: Operating revenue|317,456,442.86|191,126,945.65|438,455,160.52|
|Interest income|13,455,248.15|14,359,892.66|13,129,572.43|
|Earned premiums||0||
|Service charges and||||
||320,245.33|2,204,500.00|2,204,500.00|
|commissions income||||
|II. Total operating cost|275,166,453.65|164,180,925.54|350,817,543.80|
|Including: Operating cost|227,713,181.01|143,442,005.77|276,812,215.11|
|Interest expenses|0.00|445,888.89|445,888.89|
|Commissions|0.00|0|0.00|
|Surrender value|0.00|0||
|Net compensation||||
||0.00|0||
|pay-outs||||
|Net insurance deposit||||
||0.00|0||
|accrued||||
|Insurance dividends|0.00|0||
|Reinsurance expenses|0.00|0||
|Operating tax and||||
||6,678,270.88|6,526,579.35|30,507,163.47|
|surcharges||||
|Sale expenses|6,575,647.31|442,564.94|6,440,439.61|
|Management expenses|29,451,917.00|9,477,333.51|30,266,398.45|
|Financial cost|4,747,437.45|3,846,553.08|6,153,343.51|
|Loss from asset||||
||0.00|0|192,094.76|
|impairment||||
|Add: Income from change of fair||||
||0.00|0||
|value (enter "-" for loss)||||

Full text of Q1 2017 Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
|Income from investment||||
||544,597.03|-388,373.34|1,445,145.44|
|(enter "-" for loss)||||
|Including: Income from||||
|investment in joint ventures or|-3,570,711.00|-2,803,464.94|-2,803,464.94|
|associates||||
|Income from exchange (enter||||
||0.00|0||
|"-" for loss)||||
|III. Operating profit (enter "-" for loss)|56,610,079.72|43,122,039.43|104,416,834.59|
|Add: Non-operating revenue|1,841,331.56|202,559.94|60,886,048.66|
|Including: Gains on disposal||||
||0.00|0|0.00|
|of non-current assets||||
|Less: Non-operating expenses|147,931.71|8,785.89|180,058.13|
|Including: Loss from||||
||11,548.10|8,185.25|9,394.28|
|disposal of non-current assets||||
|IV. Total profit (enter "-" for total loss)|58,303,479.57|43,315,813.48|165,122,825.12|
|Less: Income tax|18,096,458.88|14,211,556.59|46,992,683.69|
|V. Net profit (enter "-" for net loss)|40,207,020.69|29,104,256.89|118,130,141.43|
|Net profit attributable to owners||||
||31,609,057.25|17,696,110.04|91,324,739.57|
|of the parent company||||
|Profit and loss of minority||||
||8,597,963.44|11,408,146.85|26,805,401.86|
|shareholders||||
|VI. Net of tax of other comprehensive||||
||-43,532.53|-129,709.91|-129,709.91|
|incomes||||
|Total owners' net of tax of other||||
|comprehensive incomes attributable to|-28,930.74|-86,360.86|-86,360.86|
|the parent company||||
|1. Other comprehensive incomes||||
|not to be reclassified into gains and|0.00|0|0.00|
|losses||||
|(1) Changes of net||||
|liabilities or net assets of the|0.00|0|0.00|
|re-measured defined benefit plans||||
|(2) Shares of the investee||||
|of other comprehensive incomes not to||||
||0.00|0|0.00|
|be reclassified into gains and losses||||
|under the equity method||||
|2. Other comprehensive incomes||||
||-28,930.74|-86,360.86|-86,360.86|
|to be reclassified into gains and losses||||

Full text of Q1 2017 Report of Shenzhen SEG Co., Ltd.
|||||
|-|-|-|-|
|(1) Shares of the investee||||
|of other comprehensive incomes to be||||
||159.23|0||
|reclassified into gains and losses under||||
|the equity method||||
|(2) Gains and losses from||||
|changes of fair value of the|-29,089.97|-86,360.86|-86,360.86|
|available-for-sale financial assets||||
|(3) Held-to-maturity||||
|investments categorized as gains and||||
||0.00|0||
|losses from the available-for-sale||||
|financial assets||||
|(4) Effective gains or loss||||
||0.00|0||
|from cash flows||||
|(5) Foreign currency||||
||0.00|0||
|translation differences||||
|(6) Others|0.00|0||
|Net of tax of other comprehensive||||
|incomes attributable to minority|-14,601.79|-43,349.05|-43,349.05|
|shareholders||||
|VII. Total comprehensive income|40,163,488.16|28,974,546.98|118,000,431.52|
|Total comprehensive income||||
|attributable to shareholders of the|31,580,126.51|17,609,749.18|91,238,378.71|
|parent company||||
|Total comprehensive income||||
||8,583,361.65|11,364,797.80|26,762,052.81|
|attributable to minority shareholders||||
|VIII. Earnings per share||||
|1. Basic earnings per share|0.0256|0.0225|0.0739|
|2. Diluted earnings per share|0.0256|0.0225|0.0739|

 In case of merger of enterprises under common control in the current period, the net profit of the merged party recognized before merger is 12,472,550.47 Yuan and the net profit of the merged party in the previous period is 85,590,254.75 Yuan.
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
Unit: Yuan
||||
|-|-|-|
|||Amount incurred in the same period of last|
|Item|Amount incurred in the current period||
|||year|
|I. Operating revenue|22,653,169.12|25,018,953.94|

Full text of Q1 2017 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Less: Operating cost|13,469,184.84|11,153,314.40|
|Tax and surcharges|1,371,278.23|1,415,960.62|
|Sale expenses|0.00|0.00|
|Management expenses|4,974,284.41|3,974,315.80|
|Financial cost|3,327,822.38|-6,877,232.11|
|Loss from asset impairment|0.00|0.00|
|Add: Income from change of fair|||
||0.00|0.00|
|value (enter "-" for loss)|||
|Income from investment|||
||19,451,319.40|5,350,457.84|
|(enter "-" for loss)|||
|Including: Income from|||
|investment in joint ventures or|-3,164,869.39|-2,803,464.94|
|associates|||
|II. Operating profit (enter "-" for loss)|18,961,918.66|20,703,053.07|
|Add: Non-operating revenue|1,481,023.49|3,200.00|
|Including: Gains on disposal|||
||0.00|0.00|
|of non-current assets|||
|Less: Non-operating expenses|0.00|7,915.25|
|Including: Loss from disposal|||
||0.00|7,915.25|
|of non-current assets|||
|III. Total profit (enter "-" for total loss)|20,442,942.15|20,698,337.82|
|Less: Income tax|2,051,952.89|5,842,179.61|
|V. Net profit (enter "-" for net loss)|18,390,989.26|14,856,158.21|
|V. Net of tax of other comprehensive|||
||159.23|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|||
||159.23||
|to be reclassified into gains and losses|||
|(1) Shares of the investee|159.23|0.00|

Full text of Q1 2017 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|of other comprehensive incomes to be|||
|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|0.00|
|losses from the available-for-sale|||
|financial assets|||
|(4) Effective gains or loss|||
||0.00|0.00|
|from cash flows|||
|(5) Foreign currency|||
||0.00|0.00|
|translation differences|||
|(6) Others|0.00|0.00|
|VI. Total comprehensive income|18,391,148.49|14,856,158.21|
|VII. Earnings per share|||
|1. Basic earnings per share|0.00||
|2. Diluted earnings per share|0.00||

5. Consolidated Cash Flow Statement
Unit: Yuan
||||
|-|-|-|
|||Amount incurred in the same period of last|
|Item|Amount incurred in the current period||
|||year|
|I. Cash flow from operating activities:|||
|Cash received from sales of goods|||
||432,072,426.42|394,476,155.37|
|and rendering of services|||
|Net increase in deposits from|||
||0.00|0.00|
|customers and interbank|||
|Loans from central bank|0.00|0.00|
|Net increase in loans from other|||
||0.00|0.00|
|banks|||
|Cash received from premium of|||
||0.00|0.00|
|the original insurance contract|||
|Net cash received from reinsurance|||
||0.00|0.00|
|business|||
|Net increase in the deposit of the|0.00|0.00|

Full text of Q1 2017 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|insured and investments|||
|Net increase in financial assets|||
|measured by fair value with changes|0.00|0.00|
|included in current gains and losses|||
|Cash received from interest and|||
||15,294,323.84|14,852,335.86|
|commissions|||
|Net increase in loans from other|||
||0.00|0.00|
|banks|||
|Net increase in redemption capital|0.00|0.00|
|Tax refunds|0.00|15,225,827.36|
|Other cash received from operating|||
||151,852,405.60|233,315,459.69|
|activities|||
|Subtotal of cash inflow from operating|||
||599,219,155.86|657,869,778.28|
|activities|||
|Cash paid for goods and service|252,581,380.78|428,469,612.42|
|Net increase in loans to customers|||
||-445,447.60|10,708,000.00|
|and advances|||
|Net increase in deposits with|||
||0.00|0.00|
|central bank and interbank|||
|Cash paid for indemnity payment|||
||0.00|0.00|
|of the original insurance contract|||
|Cash paid for interest and|||
||24,823.07|14,567.39|
|commissions|||
|Cash paid as insurance dividends|0.00|0.00|
|Cash paid to and on behalf of|||
||80,524,995.73|68,735,943.95|
|employees|||
|Taxes paid|77,195,936.81|49,395,417.67|
|(1) Other cash received from|||
||145,105,377.84|182,225,234.64|
|operating activities|||
|Subtotal of cash outflow in operating|||
||554,987,066.63|739,548,776.07|
|activities|||
|Net cash flow from operating activities|44,232,089.23|-81,678,997.79|
|III. Cash flow from financing activities:|||
|Cash received from withdrawal of|||
||598,000,000.00|349,300,000.00|
|investment|||
|Cash received from investment|||
||4,343,173.32|3,662,515.47|
|income|||
|Net cash received from disposal of|0.00|0.00|

Full text of Q1 2017 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|fixed assets, intangible assets and other|||
|long-term assets|||
|Net cash received from disposal of|||
||0.00|0.00|
|subsidiaries and other business units|||
|Other cash received from financing|||
||2,279.45|0.00|
|activities|||
|Subtotal of cash inflow from financing|||
||602,345,452.77|352,962,515.47|
|activities|||
|Cash paid for purchase and|||
|construction of fixed assets, intangible|12,781,888.65|3,915,829.59|
|assets and other long-term assets|||
|Cash paid for investment|514,980,001.00|317,800,000.00|
|Net increase in mortgage loans|0.00|0.00|
|Net cash paid for acquisition of|||
||30,010,000.00|0.00|
|subsidiaries and other business units|||
|Other cash paid for investment|||
||0.00|0.00|
|activities|||
|Subtotal of cash outflow in financing|||
||557,771,889.65|321,715,829.59|
|activities|||
|Net cash flow arising from financing|||
||44,573,563.12|31,246,685.88|
|activities|||
|III. Cash flow from financing activities:|||
|Cash received by absorbing|||
||56,100,000.00|0.00|
|investment|||
|Including: Cash received by|||
|subsidiaries from investment of|0.00|0.00|
|minority shareholders|||
|Borrowings received|370,000,000.00|550,920,000.00|
|Cash received from bond issue|0.00|0.00|
|Other cash received from financing|||
||0.00|7,812.30|
|activities|||
|Subtotal of cash inflow from financing|||
||426,100,000.00|550,927,812.30|
|activities|||
|Cash paid for debt repayment|223,435,625.02|359,000,000.00|
|Cash paid for dividend and profit|||
||39,883,427.10|58,875,564.11|
|distribution or interest payment|||
|Including: Dividends and profit|||
||0.00|0.00|
|paid by subsidiaries to minority|||

Full text of Q1 2017 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|shareholders|||
|Other cash paid for financing|||
||5,180,964.31|75,642,660.55|
|activities|||
|Subtotal of cash outflow in financing|||
||268,500,016.43|493,518,224.66|
|activities|||
|Net cash flow arising from financing|||
||157,599,983.57|57,409,587.64|
|activities|||
|IV. Influence of exchange rate|||
||0.00|0.00|
|fluctuation on cash and cash equivalents|||
|V. Net increase of cash and cash|||
||246,405,635.92|6,977,275.73|
|equivalents|||
|Add: Opening balance of cash and|||
||1,127,523,641.19|631,463,030.13|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||1,373,929,277.11|638,440,305.86|
|equivalents|||

6. Cash Flow Statement of the Parent Company
Unit: Yuan
||||
|-|-|-|
|||Amount incurred in the same period of last|
|Item|Amount incurred in the current period||
|||year|
|I. Cash flow from operating activities:|||
|Cash received from sales of goods|||
||26,033,371.08|25,939,842.53|
|and rendering of services|||
|Tax refunds|0.00|0.00|
|Other cash received from operating|||
||8,619,148.13|62,012,830.65|
|activities|||
|Subtotal of cash inflow from operating|||
||34,652,519.21|87,952,673.18|
|activities|||
|Cash paid for goods and service|14,145,281.85|19,456,315.88|
|Cash paid to and on behalf of|||
||12,707,304.93|12,605,752.99|
|employees|||
|Taxes paid|3,026,750.08|2,211,219.51|
|Other cash received from operating|||
||82,768,631.59|107,985,541.80|
|activities|||
|Subtotal of cash outflow in operating|||
||112,647,968.45|142,258,830.18|
|activities|||

Full text of Q1 2017 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|Net cash flow from operating activities|-77,995,449.24|-54,306,157.00|
|II. Cash flow from financing activities:|||
|Cash received from withdrawal of|||
||163,000,000.00|223,000,000.00|
|investment|||
|Cash received from investment|||
||22,616,188.79|8,266,422.78|
|income|||
|Net cash received from disposal of|||
|fixed assets, intangible assets and other|0.00|0.00|
|long-term assets|||
|Net cash received from disposal of|||
||0.00|0.00|
|subsidiaries and other business units|||
|Other cash received from financing|||
||0.00|0.00|
|activities|||
|Subtotal of cash inflow from financing|||
||185,616,188.79|231,266,422.78|
|activities|||
|Cash paid for purchase and|||
|construction of fixed assets, intangible|0.00|0.00|
|assets and other long-term assets|||
|Cash paid for investment|102,500,000.00|213,000,000.00|
|Net cash paid for acquisition of|||
||0.00|0.00|
|subsidiaries and other business units|||
|Other cash paid for investment|||
||0.00|0.00|
|activities|||
|Subtotal of cash outflow in financing|||
||102,500,000.00|213,000,000.00|
|activities|||
|Net cash flow arising from investment|||
||83,116,188.79|18,266,422.78|
|activities|||
|III. Cash flow from financing activities:|||
|Cash received by absorbing|||
||0.00|0.00|
|investment|||
|Borrowings received|220,000,000.00|90,000,000.00|
|Cash received from bond issue|0.00|0.00|
|Other cash received from financing|||
||0.00|7,812.30|
|activities|||
|Subtotal of cash inflow from financing|||
||220,000,000.00|90,007,812.30|
|activities|||
|Cash paid for debt repayment|90,000,000.00|50,000,000.00|
|Cash paid for dividend and profit|3,286,364.62|4,317,625.00|

Full text of Q1 2017 Report of Shenzhen SEG Co., Ltd.
||||
|-|-|-|
|distribution or interest payment|||
|Other cash paid for financing|||
||0.00|0.00|
|activities|||
|Subtotal of cash outflow in financing|||
||93,286,364.62|54,317,625.00|
|activities|||
|Net cash flow arising from financing|||
||126,713,635.38|35,690,187.30|
|activities|||
|IV. Influence of exchange rate|||
||0.00|0.00|
|fluctuation on cash and cash equivalents|||
|V. Net increase of cash and cash|||
||131,834,374.93|-349,546.92|
|equivalents|||
|Add: Opening balance of cash and|||
||89,733,004.87|186,144,227.38|
|cash equivalents|||
|VI. Closing balance of cash and cash|||
||221,567,379.80|185,794,680.46|
|equivalents|||

II. Auditor's Report
Is the Q1 report audited?
□ Yes√ No
The Q1 report of the Company has not been audited.